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HomeMy WebLinkAboutReal Estate, Environmental & Planning MINUTES 04-20-20 Page 2 of 6 CENTRALSAN CONTRACENTRAL •STA SANITARY DISTRICT 5019 IMHOFF BOARD OF DIRECTORS: REGULAR MEETING OF THE MICHAEL R.MCGILL President CENTRAL CONTRA COSTA TAD PILECKI SANITARY DISTRICT President Pro Tent REAL ESTATE, ENVIRONMENTAL PAUL H.CAUSEY & PLANNING COMMITTEE DMD R. WILLIAMS DAVID R. WILLIAMS MINUTES PHONE: (925)228-9500 FAX. (925)372-0192 www.centralsan.org Monday, April 20, 2020 9:00 a.m. 3rd Floor Executive Conference Room 5019 Imhoff Place Martinez, California Committee: Chair Tad Pilecki (via videoconference) Member Mike McGill (via videoconference) Guest: Russell Driver, Principal, ARC Alternatives (via videoconference, left after Item 4.b.) Staff. (via videoconference) Roger S. Bailey, General Manager Katie Young, Secretary of the District Ann Sasaki, Deputy General Manager (arrived during Item 4.a.) Jean-Marc Petit, Director of Engineering and Technical Services Melody LaBella, Resource Recovery Program Manager Lori Schectel, Environmental and Regulatory Compliance Division Manager Russ Leavitt, Engineering Assistant III 1. Notice This meeting was held in accordance with the Brown Act as in effect under the State Emergency Services Act, the Governor's Emergency Declaration related to COVID-19, and the Governor's Executive Order N-29-20 issued on March 17, 2020 that allowed attendance by Board Members, District staff, and the public to participate and conduct the meeting by teleconference, videoconference, or both. The agenda included instructions for options in which the public could participate in the meeting. May 7, 2020 Regular Board Meeting Agenda Packet- Page 160 of 174 Page 3 of 6 Real Estate, Environmental & Planning Committee Minutes April 20, 2020 Page 2 2. Call Meeting to Order Chair Pilecki called the meeting to order at 9:01 a.m. 3. Public Comments — None. 4. Agenda Items a*. Receive update on the development of Central San's potential Solar Energy Project on the Lagiss Property Ms. LaBella provided a history of the project to date and explained that after continuing conversations with Contra Costa County Planning staff, the County has indicated in writing that they will not require a Land Use Permit, if Central San decides to deliver this project via a Power Purchase Agreement (PPA). As a result, Central San can be the lead agency for the environmental review under the California Environmental Quality Act (CEQA) regardless of the project's procurement method. Mr. Driver reviewed the slides included in the agenda materials, which included the schedule, financial analysis and financial commitment milestones requested by the Committee at their February 10, 2020 meeting. In response to a question from Chair Pilecki, Mr. Leavitt stated that staff's initial assumption is to use a mitigated negative declaration and he does not foresee any adverse impacts that would warrant an environmental impact report. A biological study has been initiated along with a walk of the property prior to the current shelter-in-place order(due to the COVID-10 pandemic). He stated that there were some animal species that need to be identified. The Committee received a high-level schedule and it was noted that some of the durations/timeframes may change throughout the phases of the project. During Task 19, Pacific Gas and Electric (PG&E) will be completing interconnection work and the timeline estimates 18 months to complete that portion of the project, which is identified as part of the critical path. Schedule tasks that will require Board decisions were reviewed, including Task 12, (which is the conclusion of the procurement process and a firm cost of the project is determined for contract award) where the Board will need to decide whether or not to proceed with the project. Once an authorization from the Board occurs there will need to be a negotiation of a contract or a PPA. There was a lengthy discussion on whether to continue with the project, potential liability, and obligations to pay a vendor. In regard to a PPA, the District does not have an obligation to pay the vendor until the system is turned on and producing power. May 7, 2020 Regular Board Meeting Agenda Packet- Page 161 of 174 Page 4 of 6 Real Estate, Environmental & Planning Committee Minutes April 20, 2020 Page 3 Concerns were expressed regarding PG&E's capabilities to complete the interconnection task in a timely manner and the total cost of that work. Mr. Driver stated that the District will have a first indication from PG&E what the interconnection cost and timeline will be before the design process is completed. Once the interconnection application is accepted, PG&E must complete a technical study within 60 days. Mr. Driver reviewed the economic analysis results table included on slide 10 of the presentation and responded to multiple questions from the Committee. It was noted that the economic analysis results do not include some soft costs, such as staff time, inspections, and CEQA costs. It was suggested that a comment be included in that slide to note that. Mr. Driver provided a summary of ARC's findings: 1) the larger system (1.75 megawatts (MW)) yields the best financial results; 2) the utility interconnection process extends the critical path of the project schedule, approximately seven months of float, 3) the capacity in the Renewable Energy Self-Generation Bill Credit Transfer(RES-BCT) Program continues to hold steady and does not represent significant project risk, and 4) a PPA is a more beneficial path forward for Central San and provides the identified advantages of a PPA versus ownership. Ms. LaBella provided reasons why Central San should proceed with the project now, including: 1) tax incentives that solar vendors use to offer attractive pricing are reducing every year, 2) likely increased interest by solar vendors during current economic times, 3) staff has implemented innovative ways to incorporate public input to the project during the CEQA process and the procurement process, 4) there is very little added cost to issue a Request for Proposal (RFP) to receive pricing in order to confirm the estimated benefit of the project, and 5) the project would benefit the Operations and Maintenance budget by reducing energy costs. She also stated that after further analysis, staff agrees with ARC that a PPA for the solar project is the best approach. In response to a question from Chair Pilecki, Mr. Driver stated that despite the current situation with the COVID-19 pandemic, there are currently tax equity capital available and he opined that in 2021, there may not be due to the pandemic. If the Board were to approve the project, Member McGill asked if it would be designated as an essential project during the shelter-in-place order. Mr. Petit said he would provide that information when the item is presented to the Board. Chair Pilecki requested that information be included as a bullet to the "next steps"slide of the presentation. May 7, 2020 Regular Board Meeting Agenda Packet- Page 162 of 174 Page 5 of 6 Real Estate, Environmental & Planning Committee Minutes April 20, 2020 Page 4 Member McGill stated that he recommended proceeding with the staff recommendation as presented. Chair Pilecki requested that the presentation include consideration of the essential designation of the project. COMMITTEE ACTION: Received the update and provided input to staff. b. Receive update on Senate Bill (SB) 100 California Renewables Portfolio Standard Program Ms. LaBella reviewed the memorandum included in the agenda material. She noted that the law only applies to electricity retailers. Mr. Driver described how SB 100 will impact Central San in the future. He stated that the renewable energy requirements will be one of many drivers of pricing going forward. Chair Pilecki stated that his understanding of the law as it is currently written allows for entities like PG&E to be able to, in the future, include power generators. Mr. Driver stated that the regulatory regime is not about behind- the-meter power providers and that he believes it is more of an emissions prospective. Chair Pilecki asked who would receive the renewable energy credits for the solar generation if the solar energy PPA project were to proceed. Mr. Driver responded that the credit defaults to the asset owner, but it is negotiable. He added that the credits can be retained by the client by simply adding a requirement in an RFP, should the District choose to do so. COMMITTEE ACTION: Received the update and provided input to staff. C. Receive update on Assembly Bill (AB) 1668/Senate Bill (SB) 606 Water Use Efficiency Legislation Ms. LaBella reviewed the memorandum included in the agenda material and, in response to a question from Member McGill, stated that she would keep the Committee apprised of any changes or updates on the implementation of this legislation as they occur. COMMITTEE ACTION: Received the update and provided input to staff. d. Receive update on the most recent meeting of the Bay Area Clean Water Agencies (BACWA) Ms. Schectel reviewed the memorandum included in the agenda material. May 7, 2020 Regular Board Meeting Agenda Packet- Page 163 of 174 Page 6 of 6 Real Estate, Environmental & Planning Committee Minutes April 20, 2020 Page 5 It was noted that the State Board may entertain postponing sampling for Per- and polyfluoroalkyl substances (PFAS) as this time is not ideal and that CASA (California Association of Sanitation Agencies) is working on an alternative modeling plan. Ms. Schectel advised that the COVID-19 crisis was discussed regarding future outbreaks in influent and it was noted that several BACWA members are participating in a study on that topic through different universities. COMMITTEE ACTION: Received the update. 5. Announcements a. Mr. Bailey announced that staff is producing a dashboard on operations metrics, including treatment plant, collection systems, administration and engineering. He advised that this information will be provided to the Board once it is completed. b. Mr. Bailey stated that Central San is also putting together a team to discuss the effect of COVID-19 on influent. 6. Suggestions for future agenda items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items COMMITTEE ACTION: Received the list and provided input to staff. 7. Future scheduled meetings Monday, May 18, 2020 at 9:00 a.m. Monday, June 1, 2020 at 9:00 a.m. Monday, July 20, 2020 at 9:00 a.m. 8. Adjournment— at 10:49 a.m. May 7, 2020 Regular Board Meeting Agenda Packet- Page 164 of 174