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Home My WebLink About05.a. Review proposed Guiding Principles for Satellite Water Recycling Facility ProjectsPage 1 of 3 Item 5.a. F__1_448�411C_S0 October 25, 2021 TO: REAL ESTATE, ENVIRONMENTAL AND PLANNING COMMITTEE FROM: MELODY LABELLA, RESOURCE RECOVERY PROGRAM MANAGER REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES KENTON L. ALM, DISTRICT COUNSEL ROGER S. BAILEY, GENERAL MANAGER SUBJECT: REVIEW PROPOSED GUIDING PRINCIPLES FOR SATELLITE WATER RECYCLING FACILITY PROJECTS At the August 5, 2021, Board of Directors (Board) meeting, during the discussion on Recycled Water Policy, the Board President suggested that Central San establish Guiding Principles for Satellite Water Recycling Facility (SW RF) Projects, just as Central San had developed for the Dublin San Ramon Services District - East Bay Utility District Recycled Water Authority (DERWA) Temporary Wastewater Diversion Project. As a result, staff is bringing forward proposed Guiding Principles for SWRF Projects for the Real Estate, Environmental and Planning Committee's review, prior to consideration by the full Board. Staff looks forward to receiving the Committee's input at this meeting. Strategic Plan Tie -In GOAL ONE: Customer and Community Strategy 2 — Maintain a positive reputation GOAL TWO: Environmental Stewardship Strategy 3 — Support regional development of local water supply GOAL THREE: Fiscal Responsibility Strategy 1— Maintain financial stability and sustainability ATTACHMENTS: 1. Proposed Guiding Principles for SW RF Projects October 25, 2021 REEP Committee Meeting Agenda Packet - Page 14 of 33 Page 2 of 3 DRAFT CENTRAL SAN'S GUIDING PRINCIPLES FOR SATELLITE WATER RECYCLING FACILITY PROJECTS Wastewater is a valuable resource for California's water supply. Based on projections of future California population expansion and, even with water use efficiency, demand for water will continue to increase and will rely on including wastewater and recycled water as part of the portfolio of water resources. Accordingly, the value of recycled water and wastewater as a new supply will increase. In order to benefit the greatest number of Central San's customers with this valuable resource, it is Central San's preference to provide recycled water service to interested customers from Central San's main treatment plant in Martinez. If such centralized service is determined to be infeasible technically, financially, geographically, and/or timing -wise, Central San will support the development of Satellite Water Recycling Facility (SWRF) Projects. Central San's authorization to enter into a memorandum of understanding (MOU) and/or subsequent agreement(s) will be conditioned upon the MOU, agreements, and the operation adhering to these Guiding Principles. Each term in a SWRF Project's MOU and/or agreement will be developed in a manner consistent with the terms listed below. A. Guidin_q Principle 1: Cost Neutrality 1. SWRF Projects will be cost neutral to Central San ratepayers. 2. During the planning of a SWRF Project, and consistent with Central San's approach on new development projects, appropriate Central San staff time spent supporting the project's development will be paid by the project applicant. 3. During the start-up and operation of a SWRF Project, any additional operational or maintenance costs borne by Central San will be fully reimbursed by the benefitting Country Club/golf course owner/homeowners association (HOA). 4. Any regulatory fines or legal penalties resulting from sanitary sewer overflows from Central San's collection system that are caused by a SWRF Project's wastewater diversion and/or discharge of waste -activated sludge will be reimbursed by the benefitting Country Club/golf course owner/HOA. 5. Central San revenues, generated from the sewershed upstream of a SWRF Project's wastewater diversion location, will not be shared. These revenues include sewer service charges, Ad Valorem taxes, and capacity fees. 6. Central San provides wastewater treatment, by a contract with the City of Concord, for the cities of Concord and Clayton. Payment for this service is based on the flow ratio into Central San's wastewater treatment plant. Therefore, accurate metering and regular reporting of the amount of wastewater flow diverted from Central San's collection system will be required. B. Guiding Principle 2: Community Consent Community consent for the overall project concept, its location, and the financial/ structural arrangements for its construction, long-term operation, and maintenance is essential for the successful implementation of any SWRF Project. This includes Page 1 of 2 October 25, 2021 REEP Committee Meeting Agenda Packet - Page 15 of 33 Page 3 of 3 DRAFT consent by Central San customers and any jurisdiction having authority over all or portions of the SWRF Project, including a city, town, and/or Contra Costa County. C. Guiding Principle 3: Wastewater Supply Availability Central San's mission is to protect public health and the environment. Central San is committed to considering diversion of its available raw wastewater flow for potential SWRF Projects, with the understanding that Central San's first priority is the safe and effective operation of its wastewater collection system. 2. As Central San cannot control the volume of wastewater generated in the upstream sewershed, Central San cannot guarantee the volume, quality, and availability of wastewater flow to a proposed SWRF Project. 3. Potential regulatory changes, outside of Central San's control, could impact the upstream wastewater supply volume available to a SWRF Project, including reductions to indoor water use targets, which can lead to lower wastewater generation rates. 4. To the extent it is within Central San's control, Central San will protect the upstream wastewater supply at a proposed SWRF Project's identified diversion location by not approving any diversions from Central San's upstream sewershed. D. Guiding Principle 4: Mitigation of Technical and Operational Impacts The proposed SWRF Project will need to be designed and constructed in a manner that does not damage Central San's infrastructure as a result of the diversion of wastewater. 2. Central San must maintain a minimum amount of wastewater flow in its collection system to prevent solids from settling. If low flows from a SWRF Project's diversion causes solids settling or odor issues, Central San will enlist its collection system operations' crews to clean the impacted portion of the collection system and the benefitting Country Club/golf course owner/HOA will need to be reimburse Central San for that additional cost and remedy the cause. E. Guiding Principle 5: Readiness and Ability to Proceed Interested applicants should be aware that implementing a SWRF Project will require substantial planning and development and a significant capital investment in addition to ongoing operation and maintenance costs. To assure efficient usage of Central San's staff resources and forward momentum on SWRF Projects, the following requirements will be employed - One -year terms will be used in all future preliminary MOUs and planning agreements, with a provision to extend the term by written mutual consent of the parties. 2. Completion of a feasibility study by the project applicant will be required. Details of the study contents will be determined by Central San staff. Page 2of2 October 25, 2021 REEP Committee Meeting Agenda Packet - Page 16 of 33