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HomeMy WebLinkAbout03.a. Review draft Position Paper authorizing the General Manager to execute a renewal of the agreement with Mt. View Sanitary District (MVSD) for Central San to provide environmental compliance inspections, support MVSD permitting of select businesses, Page 1 of 13 Item 3.a. CENTRAL SAN BOARD OF DIRECTORS . , , . POSITION PAPER . , 0 DRAFT MEETING DATE: MAY 6, 2019 SUBJECT: REVIEW DRAFT POSITION PAPE RAUTHORIZING THE GENERAL MANAGER TO EXECUTE A RENEWAL OF THE AGREEMENT WITH MT. VIEW SANITARY DISTRICT (MVSD) FOR CENTRAL SAN TO PROVIDE ENVIRONMENTAL COMPLIANCE INSPECTIONS, SUPPORT MVSD PERMITTING OF SELECT BUSINESSES, AND SUPPORT PREPARATION OF MVSD'S POLLUTION PREVENTION ANNUAL REPORT SUBMITTED BY: INITIATING DEPARTMENT: TIMOTHY POTTER, ENVIRONMENTAL ENGINEERING AND TECHNICAL SERVICES- COMPLIANCE SUPERINTENDENT ERC-ENVIRONMENTAL COMPLIANCE REVIEWED BY: LORI SCHECTEL, ENVIRONMENTAL & REGULATORY COMPLIANCE DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERINGAND TECHNICAL SERVICES KENTALM, COUNSEL FOR THE DISTRICT ISSUE Continuation of the interagency partnership between Central San and Mt. View Sanitary District (MVSD) for supporting the MVSD Pollution Prevention Program beyond fiscal year 2018-19 requires renewal. The Board of Director's authorization is required for agreements with other public agencies. BACKGROUND In 2006, MVSD requested that Central San provide services to support the MVSD Pollution Prevention Program. That request was approved by both agencies' Board of Directors. through fiscal year 2006-07. Historically, MVSD relied on an employee to administer their Pollution Prevention Program. By 2006, MSVD no longer had the staffing to administer the Pollution Prevention Program work, which requires part- time coverage and draws on diverse, specialized skill. The scope of services for the existing agreement includes conducting a minimum of 40 inspections per year of businesses in the MVSD service area that could discharge pollutants identified in the MVSD list of pollutants of concern (e.g., Fats, Oils, and Grease, mercury, and copper) and preparing the Annual Pollution Prevention Report with input and oversight by MVSD staff. Central San is able to perform this May 6, 2019 REEP Committee Meeting Agenda Packet- Page 3 of 22 Page 2 of 13 work since it's similar to the work performed for its own Environmental Compliance/Pollution Prevention Program. MVSD recognized this capability when they approached Central San to provide these services. I n 2015, MVSD staff requested that Central San staff increase their level of support to prepare permit documents for MVSD to use for selected businesses. MVSD requested Central San to develop permit documents using the Central San Environmental Compliance Section's Industrial User Permits as templates to prepare more uniform permit documents to efficiently issue to businesses that MVSD determines need coverage under a discharge permit. MVSD is responsible for issuing the permits with Central San Environmental Compliance staff supporting the process. Under the agreement being considered, Central San's role is being modified to supporting MVSD's preparation of the report by reviewing the final draft report before it's submitted to the state in compliance with the MVSD National Pollutant Discharge Elimination System Permit, rather than prepare the report with MVSD's review, as MVSD now has the staffing to complete this task. ALTERNATIVES/CONSIDERATIONS The Board may decline to renew this agreement, however this action is not recommended. Environmental Compliance I nspectors already work in the MVS D service area when completing work under the Clean Water Program (CWP) inspection services agreement for the City of Martinez. Some of the additional 40 inspections per year can be combined with current CWP inspections in Martinez, and the total number is incidental when compared to the more than 1,200 inspections completed annually by Central San Environmental Compliance Inspectors. The Central San staff time required to complete the permit document development and oversight of MVSD permits issued can be worked into the schedules of several Environmental Compliance Inspectors without significant impact on their ability to complete their assigned Central San functions. FINANCIAL IMPACTS The proposed agreement provides for full cost recovery. All Central San staff hours/wages (e.g., field time, administrative, and report writing) are multiplied by the established Central San overhead multiplier and billed under this agreement. The budget for fiscal year 2019-20 is $33,230. The staff time used to provide the services will not be available to perform other Central San functions. COMMITTEE RECOMMENDATION Staff reviewed the proposed MVSD agreement at the May 6, 2019 Real Estate, Environmental & Planning Committee meeting. The Committee recommended/did not recommend approval of the MVSD agreement. RECOMMENDED BOARD ACTION Authorize the General Manager to execute the agreement renewal that would extend this interagency partnership for three years through June 30, 2022, with an option to extend the agreement through June 30, 2025. Strategic Plan re-In GOAL ONE: Provide Exceptional Customer Service Strategy 3- Maintain a strong reputation in the community May 6, 2019 REEP Committee Meeting Agenda Packet- Page 4 of 22 Page 3 of 13 ATTACHMENTS: 1. Draft MVSD Agreement May 6, 2019 REEP Committee Meeting Agenda Packet- Page 5 of 22 Page 4 of 13 AGREEMENT BETWEEN CENTRAL CONTRA COSTA SANITARY DISTRICT AND MT. VIEW SANITARY DISTRICT FOR SOURCE CONTROL AND POLLUTION PREVENTION SUPPORT SERVICES The Agreement is made this day of June 2019, between Central Contra Costa Sanitary District (Central San) and Mt. View Sanitary District (MVSD). RECITALS WHEREAS, MVSD was issued National Pollutant Discharge Elimination System (NPDES) Permit No. CA0037770 (PERMIT) by the San Francisco Bay Regional Water Quality Control Board (RWQCB), said PERMIT taking effect on July 1, 2016; and WHEREAS, MVSD will be re-issued its PERMIT with updated terms by the San Francisco Bay Regional Water Quality Control Board (RWQCB), as said PERMIT will be considered for renewal in 2021 ; and WHEREAS, the PERMIT contains components related to inspection activities at industrial and commercial facilities and annual pollution prevention report requirements; and WHEREAS, CENTRAL SAN wishes to continue to provide support services for the inspection activities and MVSD's annual pollution prevention report (collectively the SUPPORT SERVICES), as part of the implementation of the PERMIT; and WHEREAS, MVSD has identified long term goals of reporting pollution prevention activities; conducting inspections of industrial and commercial facilities; eliminating illicit connections and discharges resulting from inappropriate or illegal processes, activities or housekeeping practices; and WHEREAS, MVSD desires to continue to retain CENTRAL SAN to provide the SUPPORT SERVICES pursuant to the terms of this agreement. NOW, THEREFORE, the parties to this Agreement agree as follows: 1. Term: The term of this Agreement shall be from July 1, 2019 through June 30, 2022 and may be extended for one (1) three (3) year term until June 30, 2025 by written agreement executed by the MVSD District Manager and CENTRAL SAN General Manager. 2. Termination: Either party may terminate its obligations under this Agreement at its sole discretion by giving the other party at least ninety (90) days written notice. 3. Modification: This Agreement may only be modified by written mutual agreement signed by an authorized representative of each party. Page 1 of 10 May 6, 2019 REEP Committee Meeting Agenda Packet- Page 6 of 22 Page 5 of 13 4. Responsibilities of CENTRAL SAN: (a) To recommend that MVSD draft and adopt such resolutions and ordinances as are necessary to effectuate the inspection activities, including delegation of necessary authority to CENTRAL SAN. (b) To utilize MVSD-specific enforcement documents in enforcement actions, when provided. (c) To utilize MVSD identifiers on all informational handouts provided to MVSD dischargers, when provided. (d) To deliver to MVSD executed enforcement documents by the next business day after issuance. (e) To authorize and prioritize inspections and investigations, with direction from MVSD. (f) To provide MVSD upon request educational materials used by CENTRAL SAN to consider for distribution to industrial and commercial facilities and the public. (g) To support MVSD's preparation of the MVSD Annual Pollution Prevention Report with reviewing the draft report prior to submittal to the RWQCB. (h) To perform other responsibilities as agreed to in writing between CENTRAL SAN and MVSD, including developing permit documents and supporting issuance of permits as identified in Appendix B. Appendix A identifies the normal working hours for CENTRAL SAN. Appendix B entitled "Work Plan and Budget for Pollution Prevention Program Support" and attached hereto and incorporated herein further details CENTRAL SAN's responsibilities under this Agreement. 5. Responsibilities of MVSD: (a) MVSD shall adopt such resolutions and ordinance(s), as it determines in its sole discretion, may be necessary for CENTRAL SAN to complete the inspection activities. (b) MVSD shall identify to CENTRAL SAN the types of facilities to be inspected, and the frequency of inspections for these facility types, under this agreement as part of the planning and budget discussions each fiscal year. (c) MVSD shall provide CENTRAL SAN in a timely manner the draft Annual Pollution Prevention Report for review prior to submittal to the RWQCB. (d) MVSD shall be responsible for reviewing and considering CENTRAL SAN's suggested revisions and submitting the final Annual Pollution Page 2 of 10 May 6, 2019 REEP Committee Meeting Agenda Packet- Page 7 of 22 Page 6 of 13 Prevention Report to the RWQCB. 6. Financial: CENTRAL SAN shall prepare and submit to MVSD invoices for costs related to the inspection and report review activities no more frequently than monthly and no less frequently than quarterly. CENTRAL SAN shall include as part of this invoice packet, a report of the inspection activities performed under this Agreement for the reporting period of the invoice. MVSD shall promptly process payment of the undisputed amount of the invoices submitted (e.g. within 60 days of receiving the invoice). (a) The labor costs shall be itemized at base cost per individual for time spent plus an overhead multiplier of 203% (FY 19-20) for benefits, administrative overhead, supplies, equipment and insurance. The CENTRAL SAN overhead multiplier for the following fiscal year shall be submitted to MVSD annually by January 31, and shall be considered for approval by MVSD as part of the annual budget. (b) To further cost efficiency, time spent by staff of CENTRAL SAN at meetings relative to the inspection and pollution prevention report activities will be minimized to the extent practicable consistent with providing the quality services contemplated by this Agreement. Laboratory services will be similarly minimized. (c) Prior to the beginning of each fiscal year, CENTRAL SAN shall propose an inspection and pollution prevention report activities budget. CENTRAL SAN shall have MVSD review and approve that activities budget. Discussions for the annual budget shall begin in January prior to the fiscal year in question. CENTRAL SAN shall not exceed the approved written budget, absent written consent signed by an authorized representative of MVSD. (d) The total charges for all SUPPORT SERVICES provided under this Agreement shall not exceed $23,440 for fiscal year 2019-20 for the inspection and Pollution Prevention Report support, $5,440 for permit document development, and $4,350 per permit for supporting the issuance and monitoring of permits issued to businesses. This limit on charges shall increase by 3% for each fiscal year of the agreement. 7. Insurance: During the term of this Agreement, CENTRAL SAN shall at no cost to MVSD carry Workers' Compensation and Employers' Liability Insurance as required by law as well as General Comprehensive Public Liability and Automobile Liability insurance in the amount of at least five million dollars ($5,000,000) per occurrence naming MVSD and its agents and employees as additionally insured. However, CENTRAL SAN may self- insure General Comprehensive Public Liability and Automobile Liability up to a self retention amount of five hundred thousand dollars ($500,000) and shall assume responsibility for defense costs and fees up to the self-retention amount provided CENTRAL SAN has a responsibility for the occurrence pursuant to the indemnity provisions below. CENTRAL SAN shall provide MVSD with evidence of this insurance upon request. Page 3 of 10 May 6, 2019 REEP Committee Meeting Agenda Packet- Page 8 of 22 Page 7 of 13 8. Indemnification: CENTRAL SAN shall indemnify, defend and hold harmless MVSD and its respective officers, directors, agents and employees from and against all suits, actions, legal or administrative proceedings, claims, demands, damages, consequential damages, liabilities and expenses arising out of or related to CENTRAL SAN's negligence, willful misconduct or vehicle accident in connection with CENTRAL SAN's performance of this Agreement. MVSD shall for its jurisdictional area, indemnify, defend and hold harmless CENTRAL SAN, and its respective officers, directors, agents, and employees from and against all suits, actions, legal or administrative proceedings, claims, demands, damages, consequential damages, liabilities and expenses (collectively "claims") arising out of or related to MVSD's, negligence or willful misconduct in relation to this Agreement. MVSD shall also indemnify, defend and hold harmless CENTRAL SAN from other claims that are not based on CENTRAL SAN's negligence, such as, but not limited to constitutional or property rights claims, arising from CENTRAL SAN's performance under this Agreement of activities that MVSD is legally responsible for undertaking. MVSD shall also be solely liable for any fines resulting from NPDES Permit non-compliance related to CENTRAL SAN's performance or failure to perform under this Agreement. 9. Notices: Notices required or permitted under this Agreement shall be in writing and made as follows: If to MVSD, to: District Manager Mt. View Sanitary District P.O. Box 2757 Martinez, CA 94553 (925) 228-5635 x20 If to CENTRAL SAN, to: Environmental Compliance Superintendent Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553-4392 (925) 229-7380 10. Arbitration: In the event of a dispute arising under this Agreement, the parties prior to the filing of a civil action agree to submit such dispute to non-binding arbitration. In the event the parties cannot agree to an arbitrator within thirty (30) days after a party requests arbitration by written notice to the other parties, the arbitrator may be selected by petition of any party to the Superior Court of the County of Contra Costa. Page 4 of 10 May 6, 2019 REEP Committee Meeting Agenda Packet- Page 9 of 22 Page 8 of 13 IN WITNESS WHEREOF, the parties have executed this Agreement as follows: CENTRAL CONTRA COSTA MT. VIEW SANITARY DISTRICT SANITARY DISTRICT By: By: Its: Its: Dated: Dated: ATTEST: ATTEST: By: By: Board Secretary Board Secretary Dated: Dated: APPROVED AS TO FORM: APPROVED AS TO FORM: By: By: Attorney Attorney Dated: Dated: Page 5 of 10 May 6, 2019 REEP Committee Meeting Agenda Packet- Page 10 of 22 Page 9 of 13 APPENDIX A AGENCY NORMAL WORKING HOURS Central Contra Costa Sanitary District 7:30 am. - 4:30 p.m. Monday through Friday, excluding holidays Page 6 of 10 May 6, 2019 REEP Committee Meeting Agenda Packet- Page 11 of 22 Page 10 of 13 Appendix B Work Plan and Budget for Pollution Prevention Program Support Service Agreement between MVSD and CENTRAL SAN This work plan and budget are developed for planning purposes in order to supplement the Support Service Agreement signed by MVSD and CENTRAL SAN and is incorporated therein. Scope of Services MVSD requests CENTRAL SAN to continue supporting the MVSD Pollution Prevention (P2) Program by providing field inspection and enforcement support for businesses in the MVSD service area that could discharge identified pollutants of concern to the MVSD sanitary sewer system. In addition, CENTRAL SAN supports the MVSD P2 Program by reviewing the draft MVSD's Annual P2 Report for MVSD prior to submittal to the RWQCB by the deadline established in the MVSD NPDES Permit. The identified budgets are based on the estimated time to complete the program activities. The actual time worked to complete the tasks will serve as the basis for CENTRAL SAN to bill MVSD for the services provided in accordance with the Service Agreement provisions. Annual Pollution Prevention Report Preparation Work performed under this task involves CENTRAL SAN providing data for and reviewing MVSD's Annual P2 Report. The agency roles in preparing this report are described below. CENTRAL SAN's responsibilities: CENTRAL SAN staff will assist MVSD in providing data for, and reviewing, MVSD's Annual P2 Report. The report preparation process involves: o Providing information and data (e.g. Environmental Compliance field inspection services, HHW waste disposal information) to be included in the Annual P2 Report. o Reviewing and commenting on the draft report by within five (5) working days before the due date. MVSD's responsibilities: MVSD shall be responsible for preparing and submitting the Annual P2 Report to the RWQCB by August 31st of each year, in the format required by RWQCB. The report preparation process involves: o Receiving information and data supplied by CENTRAL SAN staff (e.g. Environmental Compliance field inspection services, HHW waste disposal information) to be included in the Annual P2 Report. o Preparing a draft report and providing to CENTRAL SAN for review. The initial draft report will be due to CENTRAL SAN ten (10) working days before due date; MVSD will consider CENTRAL SAN comments and provide the final report to the RWQCB. MVSD can elect not to request CENTRAL SAN review of the Page 7 of 10 May 6, 2019 REEP Committee Meeting Agenda Packet- Page 12 of 22 Page 11 of 13 Annual P2 Report. MVSD will notify CENTRAL SAN if they intend to finalize and submit the Annual P2 Report without CENTRAL SAN's review. Estimated staff hours to complete task: 5 hours Projected FY 19-20 budget to complete task: $1,000 Business Inspection Services CENTRAL SAN will perform field inspection and enforcement services at businesses located in the MVSD service area. MVSD will authorize CENTRAL SAN to conduct these inspections under their ordinance and to issue field enforcement documents (e.g. Warning Notice, Notice of Violation) as a result of these inspection activities. CENTRAL SAN will work with the businesses to achieve compliance whether enforcement documents are issued or not; budget estimate factors in the anticipated time to conduct this follow-up work. The business categories will be identified by MVSD. Actual businesses inspected from the inventory will be selected by CENTRAL SAN for routine inspections. CENTRAL SAN will provide MVSD an annual inspection plan with a schedule for routine inspections, at which time MVSD can identify either specific businesses or targeted geographic areas (e.g. grease "hot spot") for inspections to be performed under this agreement. Reactive or "Call-out" inspections will be performed under this agreement as needed and may result in different types of businesses being inspected. CENTRAL SAN will produce and maintain the records associated with this fieldwork (e.g. inspection reports, enforcement documents, submittals by businesses) and will submit these records to MVSD in an electronic format (e.g. pdf file attached to email) to facilitate linking to the GIS system as specified in the Service Agreement. MVSD has identified an annual goal for CENTRAL SAN to complete 40 inspections in order to ensure the inspection frequency of the business categories is achieved. Number of targeted business inspections under this task: 40 Initial Inspections or Reinspections per fiscal year Projected budget to complete task ($561/inspection rate for FY19-20: $22,440 for FY 19-20 Business Discharge Permitting Services Permit Document Development CENTRAL SAN will support MVSD's development of documents to be used to issue permits to certain businesses operating in the MVSD service area to authorize the discharge of process wastewater to the MVSD sanitary sewer system. Using CENTRAL SAN's current permit documents (e.g. application, permit document, supporting documents), CENTRAL SAN will prepare draft documents for MVSD's review that are modified to be applicable for MVSD's ordinance and permitting program. CENTRAL SAN staff will work with MVSD staff to finalize the permit documents so that permits can be efficiently issued to businesses in the future. This task is expected to be completed once with any support to modify permit Page 8 of 10 May 6, 2019 REEP Committee Meeting Agenda Packet- Page 13 of 22 Page 12 of 13 documents after they are finalized being incorporated into the Permit Administration task identified below. Three different types of permit documents are anticipated: • Discharging process wastewater that requires monitoring, Best Management Practices (BMPs), and/or O&M standards • Zero Discharge operations establishing means of verifying zero discharge status and providing certification of compliance with zero discharge standards • Temporary discharges of process wastewater (e.g. construction dewatering, groundwater remediation) This work plan assumes that none of the permits issued by MVSD will be to facilities classified as Significant Industrial Users in 40 CFR Part 403. Estimated staff hours to complete task: 15 to 30 hours Projected FY 19-20 budget to complete task (based on 30 hours): $5,440 Supporting Identification of Potential Businesses to be Permitted and Issuing Permits CENTRAL SAN Responsibilities: While conducting inspections under this agreement, CENTRAL SAN will identify potential businesses for MVSD to consider issuing a permit based on criteria established by MVSD and comparable operations to businesses that MVSD has issued permits. CENTRAL SAN will communicate by letter or email identifying the business name, address, and brief description of the business activity generating a process wastewater that may warrant a permit being issued and recommending that a permit application document be sent to the business. If wastewater sampling is needed to assess the need to issue a permit and after coordinating with MVSD, CENTRAL SAN will work with the business to conduct this sampling, or will conduct the process wastewater sampling and deliver the samples to the analytical laboratory if needed. The cost of analytical work is not included in this work plan or budget. If MVSD directs CENTRAL SAN to develop permit documents for a particular business, CENTRAL SAN will conduct site inspection(s) of the business to determine if any additional information is needed to start drafting a permit (e.g. need for pretreatment, process modification options) and to assess any space constraints or other logistical issues that will affect the businesses ability to install pretreatment equipment. Inspections conducted under this phase of the permit program will not be included as part of the routine inspection services conducted under this agreement. CENTRAL SAN will draft applicable documents to develop a complete draft permit for MVSD to review. CENTRAL SAN will modify permit documents as instructed by MVSD staff. CENTRAL SAN will conduct additional inspections of permitted businesses (e.g. witness self- monitoring) and will review adequacy of periodic compliance reports and other submittals required in a permit as instructed by MVSD to assess a business' compliance with the permit conditions. Page 9 of 10 May 6, 2019 REEP Committee Meeting Agenda Packet- Page 14 of 22 Page 13 of 13 MVSD Responsibilities: MVSD will review CENTRAL SAN referrals for businesses to consider issuing a permit and will send the permit application packet to the business if determined to be appropriate. MVSD will respond to CENTRAL SAN in letter or email with a decision about the referral. If the decision is to require the business to complete a permit application to further consider issuing a permit, the MVSD written communication shall constitute instructions to CENTRAL SAN to commence the process to evaluate the permit application and develop a draft permit document packet identified above. If MVSD identifies a business that should be issued a permit through its own internal processes (e.g. plan review), MVSD will notify CENTRAL SAN of this decision in letter or email which will initiate CENTRAL SAN's role in processing the permit documents identified above. MVSD will be responsible for fully executing the final permit document and issuing it to the business. MVSD shall provide CENTRAL SAN a copy of the fully executed permit for file reference. Estimated staff hours to complete task per permit: 12 to 24 hours (Range includes allowance for extra work during initial issuance of permits. Efficiencies are expected to occur as facilities are evaluated and permits issued over time, and experience gained in the level of effort to oversee permitted businesses, which could result in fewer hours to process permits.) Projected FY 19-20 budget to complete task per permit processed (based on 24 hours for one (1) to two (2) permits per year): $4,350 Total Proiected Budget The budget for each year will consist of the sum of the Pollution Prevention Report preparation, Business Inspection Services, Development of Permit Documents, and Supporting MVSD with Issuing and Monitoring Compliance with permits. Estimated budget for FY 19-20: Projected Budget for P2 Report Support (FY 19-20): $1,000 Projected Budget for Inspection Services (FY 19-20): $22,440 Projected Budget for Permit Document Development (FY 19-20): $5,440 Projected Budget for Supporting MVSD Issuing Permits (FY 19-20): $4,350 NOTE: Budgets for subsequent years will be increased by up to 3% per year to allow for wage increases for CENTRAL SAN staff. Page 10 of 10 May 6, 2019 REEP Committee Meeting Agenda Packet- Page 15 of 22