HomeMy WebLinkAbout04.a. Review draft Position Paper to authorize the General Manager to execute Amendment 2 to extend the termination date for one year to June 30, 2021, for the Memorandum of Understanding between Central San, Contra Costa Water District, and Santa Clara Page 1 of 16
Item 4.a.
CENTRAL SAN BOARD OF DIRECTORS
. , , .
POSITION PAPER
. , 0
DRAFT
MEETING DATE: JUNE 1, 2020
SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL
MANAGER TO EXECUTE AMENDMENT 2 TO EXTEND THE TERMINATION
DATE FOR ONE YEAR TO JUNE 30, 2021, FOR THE MEMORANDUM OF
UNDERSTANDING BETWEEN CENTRAL SAN, CONTRA COSTA WATER
DISTRICT, AND SANTA CLARA VALLEY WATER DISTRICT FOR A
PRELIMINARY FEASIBILITY EVALUATION OF THE REFINERY RECYCLED
WATER EXCHANGE PROJECT
SUBMITTED BY: INITIATING DEPARTMENT:
MELODY LABELLA, RESOURCE RECOVERY ENGINEERING AND TECHNICAL SERVICES-
PROGRAM MANAGER PDS-RESOURCE RECOVERY
REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
ISSUE
Board authorization is requested for the General Manager to execute an amendment to an existing
memorandum of understanding.
BACKGROUND
On April 30, 2018, Central San, Contra Costa Water District (CCW D), and Santa Clara Valley Water
District (Valley Water) executed a three-way Memorandum of Understanding (MOU)to complete a
preliminary feasibility evaluation of the Refinery Recycled Water Exchange Project (Project). See
Attachment 1 for a copy of the fully-executed MOU. The Project's concept is that Central San would
produce approximately 20 million gallons per day of recycled water (similar to the quality of raw water
currently being used by the refineries)to provide to CCW D to serve to their refinery customers and the
freed water supply would be conveyed to Valley Water, who would invest in the Project.
Following the execution of the MOU, staff from the three agencies collaborated to develop a Work Plan to
define the tasks of the Preliminary Feasibility Evaluation, as called for in the MOU, by June 15, 2018. The
goal of the original MOU was to complete these evaluation tasks by June 30, 2019. Since June 2018,
each agency has been working to complete the tasks assigned by the Work Plan. In July 2018, Central
San staff hired Brown & Caldwell (B&C), under the General Manager's authority, to provide as-needed
support for Central San's technical tasks that are part of the Work Plan. B&C completed several of the
technical tasks and prepared cost estimates for potential treatment trains that could produce recycled
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water for the refineries.
At the May 2, 2019, Board meeting, staff sought and obtained the Board's approval to create a capital
project for the Project and to amend B&C's existing contract to allow for additional analysis on the
Project. Since that analysis would continue beyond the original MOU's termination date of June 30, 2019,
on June 20, 2019, staff sought and obtained the Board's approval to authorize the General Manager to
execute Amendment 1 to the MOU, which extended the termination date by one year to June 30, 2020.
On June 21, 2019, staff held and facilitated an all-day technical peer review workshop with national
wastewater/recycled water industry experts to solicit their input on the most cost-effective treatment trains
for implementing the Project. B&C has refined the treatment trains suggested at the workshop and
developed associated cost estimates, which will soon be shared with the partner agencies for review.
I n April 2020, the General Manager received agreement from both partner agencies to assign Board
liaisons from their respective agencies to meet with Central San's newly-appointed Valley Water Board
liaison (Board member Dave Williams)to discuss the Project at the early May 2020 Association of
California Water Agencies (ACWA) conference in Monterey, California. Unfortunately, due to COVID-19,
that meeting had to be postponed, as the ACWA conference originally scheduled in person in May has
been changed to a virtual conference in July 2020. In order to continue the dialogue among the partner
agencies, staff is proposing another amendment to extend the MO U's termination date by one year to
June 30, 2021. Both CCWD and Valley Water have agreed to such an extension. See Attachment 2 for
the proposed MOU Amendment 2.
ALTERNATIVES/CONSIDERATIONS
The Board may decline authorization of Amendment 2, but that is not recommended as it could
preliminarily end the conversation with these potential partner agencies about moving to implement this
innovative project.
FINANCIAL IMPACTS
Apart from minimal staff time to coordinate and facilitate discussions among the leadership at the partner
agencies, authorizing this MOU amendment will not result in a financial impact to Central San.
COMMITTEE RECOMMENDATION
This item was considered at the June 1, 2020, Real Estate, Environmental & Planning Committee meeting
and the Committee members supported/did not support staff's recommendation.
RECOMMENDED BOARD ACTION
Authorize the General Manager to execute Amendment 2 to extend the termination date to June 30, 2021
for the MOU between Central San, CCW D, and Valley Water for a preliminary feasibility evaluation of the
Refinery Recycled Water Exchange Project.
Strategic Plan Tie-In
GOAL SIX: Embrace Technology, Innovation and Environmental Sustainability
Strategy 1 -Augment the region's water supply
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ATTACHMENTS:
1. Fully-Executed MOU
2. Proposed MOU Amendment 2
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Attachment 1
MEMORANDUM OF UNDERSTANDING
BETWEEN
CENTRAL CONTRA COSTA SANITARY DISTRICT
CONTRA COSTA WATER DISTRICT
AND
SANTA CLARA VALLEY WATER DISTRICT
TO
CONDUCT A PRELIMINARY FEASIBILITY EVALUATION OF
THE REFINERY RECYCLED WATER EXCHANGE PROJECT
This Memorandum of Understanding (MOU) is made and entered into on this 30th
day of April , 2018, by and between Central Contra Costa Sanitary District (Central
San), Contra Costa Water District (CCWD) and the Santa Clara Valley Water District
(SCVWD), all special districts created by Legislature of the State of California. All three
agencies hereinafter may be referred to individually as "Party" or collectively as
"Parties."
RECITALS
1. WHEREAS, California's semiarid and changing climate, its ambitious and evolving
economy, and its continually growing population contribute to water management
challenges; and
2. WHEREAS, the Parties recognize that integrated utilization of capacity in existing
infrastructure, new interconnections and/or facilities, and water exchanges may
provide water supply reliability and/or water quality benefits to multiple agencies and
the public and businesses we serve; and
3. WHEREAS, it is a Central San strategic goal to embrace technology, innovation, and
environmental sustainability by exploring partnering opportunities to augment the
Region's water supply; and
4. WHEREAS, it is the mission of CCWD to strategically provide a reliable supply of
high quality water at the lowest cost possible in an environmentally responsible
manner; and CCWD is completing the environmental review of the Phase 2 Los
Vaqueros Reservoir Expansion Project with several local agencies participating in
the ongoing planning studies; and
5. WHEREAS, it is the mission of SCVWD to provide Silicon Valley safe, clean water
for a healthy life, environment, and economy, and SCVWD is currently updating its
Water Supply Master Plan, which describes the new water supply investments the
District is planning to make to achieve its water supply reliability target, the
anticipated schedule of those investments, and the associated costs and benefits of
the investments; and
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6. WHEREAS, CCWD and SCVWD are members of the Bay Area Regional Reliability
Partnership, which is working to develop regional solutions to enhance water supply
reliability, leverage existing infrastructure investments, facilitate water transfers
during critical shortages, and improve climate change resiliency for the benefit all
Bay Area residents; and
7. WHEREAS, the Bay Area Regional Reliability Partnership prepared a Drought
Contingency Plan that evaluated several potential drought mitigation measures,
including the construction of the Transfer-Bethany Pipeline a key intertie facility
included in the Phase 2 Los Vaqueros Reservoir Expansion Project; and
8. WHEREAS, the Parties are interested in conducting a preliminary feasibility
evaluation of an innovative water exchange arrangement in which recycled water
from Central San could be made available to SCVWD, and where such recycled
water, in lieu of raw water, through an exchange arrangement, would be delivered by
Central San to CCWD to serve existing industrial customers.
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING AND THE MUTUAL
PROMISES HEREINAFTER PROVIDED, THE PARTIES AGREE AS FOLLOWS:
1. TERM
a) This MOU shall become effective upon its execution by all Parties.
b) This MOU will terminate on June 30, 2019, or when all obligations under this
MOU have been performed, whichever occurs first, unless this MOU is
terminated pursuant to Article 11, Termination, or extended pursuant to Article
19, Amendment.
2. PURPOSE
The purpose of this MOU is to define the roles and responsibilities of each Party,
and the timing, for conducting a Preliminary Feasibility Evaluation of the Refinery
Recycled Water Exchange Project.
3. KEY ASSUMPTIONS
The key assumptions to be investigated as part of this Preliminary Feasibility
Evaluation are:
a) In general, the Recycled Water Exchange Project will be considered in a
manner that provides a betterment for the customers served by the Parties,
and does not result in any unacceptable net adverse impacts to each
respective Party or its customers. In evaluating various alternatives for the
Recycled Water Exchange Project, the benefits and costs for all Parties will
be developed as a foundation for any proposals that can be discussed and
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agreed among the Parties on how to move forward with the Recycled Water
Exchange Project.
b) CCWD currently serves two oil refineries approximately 22,000 acre-feet per
year of high quality surface water, which consists of water received from the
Central Valley Project (CVP) under CCWD's CVP water supply contract
and/or CCWD's Los Vaqueros Water Right. CCWD is willing to offer recycled
water to these customers in lieu of their current deliveries and if one or both of
these customers desires to proceed, an appropriate amount of CCWD's
supplies could be used to facilitate an exchange arrangement whereby
SCVWD would be provided with the forgone CCWD supply subject to
CCWD's operational and schedule requirements.
c) Central San has available treated wastewater supply that could be recycled
through further treatment, and be provided to CCWD to serve the two oil
refineries near Central San's wastewater treatment plant.
d) SCVWD is interested in exploring how the newly available CCWD CVP water
could be transported or exchanged in the most beneficial way to improve its
water supply reliability at a cost that the SCVWD Board believes is acceptable
to its ratepayers.
e) Delta resource impacts such as water quality, Delta outflow, and aquatic
species impacts will be explored as part of the environmental review process,
if the Refinery Recycled Water Exchange Project moves forward.
f) CCWD shall handle all communications with its refinery customers regarding
this evaluation.
4. WORK TO BE PERFORMED
The preliminary feasibility evaluation of the Refinery Recycled Water Exchange
Project will be completed with in-kind services and cooperative input from the
Parties. The Parties will develop a work plan to outline the specific tasks to be
completed (Work Plan). Topics to be covered in the Work Plan include: refinery
recycled water quality and reliability, project yield, conveyance options and
constraints, cost, and cost allocation.
5. TIMELINE
The Parties will work together to develop the Work Plan within 45 days of
execution of this MOU and complete the Preliminary Feasibility Evaluation by the
end of calendar year 2018.
6. REGULATORY APPROVALS, ENVIRONMENTAL APPROVALS,
ENVIRONMENTAL COMPLIANCE AND ENVIRONMENTAL REVIEWS
The Parties agree that the work contemplated in this MOU is for evaluation
purposes only and is, therefore, exempt from the requirements of the
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California Environmental Quality Act (CEQA) pursuant to CEQA
Guidelines that exempt projects involving only feasibility or planning
studies for future actions which have not been approved, adopted, or
funded. If a project resulting from this evaluation moves forward, all
appropriate environmental reviews will be conducted at that time.
7. RESPONSIBILITIES OF THE PARTIES
Central San shall be the Project Manager of the overall evaluation effort;
however, the Parties shall each have unique responsibilities that will be identified
in the Work Plan that will be developed by staff of the respective Parties. General
responsibilities of all Parties are as follows:
a) Work cooperatively to develop the Work Plan and complete the Preliminary
Feasibility Evaluation.
b) Commit staff time to work with staff from other Parties.
c) Share relevant engineering, permitting, regulatory and operational information
regarding its own facilities, studies, and permits with other Parties for the benefit
of the evaluation.
d) Provide access to facilities and operational data that may be needed for
conducting the preliminary feasibility evaluation (such as intakes,
conveyance/distribution facilities, treatment plants, interties, etc.). If needed,
commit staff time to conduct necessary analysis of its own facilities, permits,
operational data, procedures or requirements, or any other data needed for
consideration and share the information with other Parties. Access to facilities will
be consistent with, and will follow, the facility owner's, security and standard
safety and notification requirements.
e) All Parties will, upon reasonable advance written notice, make available for
inspection to the other Parties all records, books and other documents directly
relating to the Work Plan as well as any other work related to water supply
institutional arrangements and agreements that are required for conducting the
preliminary feasibility evaluation.
f) Provide appropriate level of oversight and review of any work products.
g) Coordinate with the other Parties on all media outreach, media responses, and
messaging, prior to any media outreach.
h) The Parties, and any consultants retained by a Party or Parties, shall maintain
the confidentiality of, and will not disclose, display, provide, or make available,
any documents shared by a Party which contain confidential water facility data to
any person other than another Party, unless written permission is granted by the
sharing Party. Confidential documents shall be returned to the sharing Party at
the expiration or termination of this MOU, or at any other time at the request of
the sharing Party. Confidential data shall be identified as such at the time shared.
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8. IN-KIND SERVICES
The Parties agree that in-kind services (i.e. in-house staff resources) will be used
to complete this Preliminary Feasibility Evaluation, with each Party covering the
cost for its own in-kind staff work. Activities undertaken by any Party in
furtherance of this MOU shall be at that Party's sole cost and expense, unless
otherwise agreed to in writing by all the Parties pursuant to Article 19,
Amendment.
9. INDEMNIFICATION
To the extent permitted by State law, each Party will indemnify, defend and hold
all other Parties and their directors, officers, agents, and employees safe and
harmless from any and all claims, suits, judgments, damages, penalties, costs,
expenses, liabilities and losses (including without limitation, sums paid in
settlement of claims, actual attorneys' fees, paralegal fees, consultant fees,
engineering fees, expert fees and any other professional fees) that arise from or
are related in any way to each Party's, directors, officers, agents, and employees
negligent acts, errors or omissions, or willful misconduct, in the performance of
this MOU.
10.DISPUTES
Any claim that a Party may have against another Party or Parties regarding the
performance of this MOU including, but not limited to, claims for compensation
will be submitted to the other Party or Parties within three months of its accrual.
Parties will attempt to negotiate a resolution of such claim and, if necessary,
process an amendment to this MOU or enter into a settlement agreement to
implement the terms of any such resolution.
11.TERMINATION
If an individual Party elects to terminate its participation in this MOU, it may do so
by delivering to each remaining Party a written notice of intention to terminate.
Termination shall be effective ten days from the date of the notice.
12.RELEASE OF INFORMATION
The approval of all Parties is required prior to the release of information
developed pursuant to this MOU, other than in response to a Public Records Act
request, subpoena, or court order. In the event of a request pursuant to the
Public Records Act, subpoena, or court order, the Parties shall meet and confer
regarding disclosure. Should a Party object to disclosure of certain documents or
information, the objecting Party shall, at its own expense and risk, be provided
the opportunity to seek a protective order to prevent disclosure.
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13.MOU NOT A PRECEDENT
The Parties intend that the provisions of this MOU will not bind the Parties as to
the provisions of any future MOU or agreement between them.
14. NOTICES
Any notice, demand, or request made in connection with this MOU must be
in writing and will be deemed properly served if delivered in person or sent
by United States mail, postage prepaid, to the addresses specified below:
If to Central San: Roger S. Bailey
General Manager
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, CA 94553
If to CCWD: Jerry Brown
General Manager
Contra Costa Water District
PO Box H2O
Concord, CA 94524
If to SCVWD: Norma J. Camacho
Chief Executive Officer
Santa Clara Valley Water District
5750 Almaden Expressway
San Jose, CA 95118
15.NO THIRD-PARTY BENEFICIARIES
No third-party beneficiaries are intended or created by this MOU.
16.SEVERABILITY
If any term or provision of this MOU is deemed invalid or unenforceable by a
court of competent jurisdiction or by operation of any applicable law, it will not
affect the validity of any other provision, which will remain in full force and effect.
17.COMPLETE MOU
Other than as specified herein, no document or communication passing between
the Parties to this MOU will be deemed to be part of this MOU.
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18.ASSIGNMENT
This MOU is not assignable either in whole or in part, except upon the written
consent of each and every non-assigning Party.
19.AMENDMENT
Except as provided herein, no alteration, amendment, variation, or waiver of the
terms of this MOU shall be valid unless made in writing and signed by all Parties.
20.SUCCESSORS
This MOU shall bind the successors of the Parties in the same manner as if they
were expressly named.
21.INTERPRETATION
This MOU shall be deemed to have been prepared equally by all Parties, and
its individual provisions shall not be construed or interpreted more favorably for
one Party on the basis that another Party or Parties prepared it.
22.INTEGRATION
This MOU represents the entire understanding of the Parties as to those matters
contained herein. No prior oral or written understanding shall be of any force or
effect with respect to those matters covered hereunder.
23.WAIVER
Waiver by any Party of a default, breach or condition precedent, shall not be
constructed as a waiver of any other or subsequent default, breach, or any right
hereunder.
24.GOVERNING LAW AND VENUE
This MOU is governed by and will be interpreted in accordance with the laws of
the State of California. Venue shall be in the Superior Court of the County of
Contra Costa.
25.COUNTERPARTS
This MOU may be executed in counterpart. Facsimile, including email, and
electronic signatures shall be binding.
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This MOU will be effective as of the date of the last signature below.
C RA CONTRA COSTA SANITARY DISTRICT
t � w
oger S. Bailey Katie oung
General Manager Secretary o th D�(), t
Date
Approved as to form:
Kenton L. Alm
District Counsel
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l Page 12 of 16
E
C
CONTRA COSTA WATER DISTRICT
Aw
Jerry UMa
Mary A. eher
Generg District Secretary
&J&Z gd. D
Date
Approved as to form:
Doug oty
District Legal Counsel
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SANTA CLARA VALLEY WATER DISTRICT
Norma J. amacho
Chief Executive Officer
1.111
Date
Approved as to form:
Anthony;(. Fulcher
Senior Kssistant District Counsel
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AMENDMENT NO. 2 Attachment 2
TO THE
MEMORANDUM OF UNDERSTANDING
BETWEEN
CENTRAL CONTRA COSTA SANITARY DISTRICT
CONTRA COSTA WATER DISTRICT
AND
SANTA CLARA VALLEY WATER DISTRICT
TO
CONDUCT A PRELIMINARY FEASIBILITY EVALUATION OF
THE REFINERY RECYCLED WATER EXCHANGE PROJECT
This Amendment No. 2, effective as of the date of the last signature below, amends the
Memorandum of Understanding (MOU) by and between Central Contra Costa Sanitary
District, Contra Costa Water District, and Santa Clara Valley Water District.
1. Delete Section 1(b) of the MOU in its entirety and replace with the following:
"This MOU will terminate on June 30, 2021, or when all obligations under this MOU have been
performed, whichever occurs first, unless this MOU is terminated pursuant to Article 11,
Termination, or extended pursuant to Article 19, Amendment."
IN WITNESS WHEREOF, the parties have executed this Amendment No. 2.
CENTRAL CONTRA COSTA SANITARY DISTRICT
Roger S. Bailey, General Manager Date
Approved as to form:
Kenton L. Alm, District Counsel
Amendment No.2
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CONTRA COSTA WATER DISTRICT
Stephen J. Welch, General Manager Date
Approved as to form:
Doug Coty, District Legal Counsel
Amendment No.2
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SANTA CLARA VALLEY WATER DISTRICT
Norma J. Camacho, Chief Executive Officer Date
Approved as to form:
Anthony T. Fulcher, Senior Assistant District Counsel
Amendment No.2
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