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HomeMy WebLinkAbout09. Consider approval of proposed Guiding Principles for Satellite Water Recycling Faciility Projects Page 1 of 12 Item 9. CENTRALSAN Jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT December 16, 2021 TO: HONORABLE BOARD OF DIRECTORS 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: CONSIDER APPROVAL OF 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 brought forward proposed Guiding Principles for SWRF Projects for the Real Estate, Environmental and Planning (REEP) Committee's review on October 25, 2021 and is now seeking the Board's approval at this meeting. See Attachment 1 for a redlined version, highlighting proposed edits since the REEP Committee's review, and Attachment 2 for the new proposed version of the Guiding Principles for the Board's consideration. 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 December 16, 2021 Regular Board Meeting Agenda Packet- Page 65 of 216 Page 2 of 12 ATTACHMENTS: 1. SWRF Guiding Principles - Redlined 2. SWRF Guiding Principles - Proposed 3. Presentation December 16, 2021 Regular Board Meeting Agenda Packet- Page 66 of 216 ATTARIMEWT 1 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. Guiding 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 therp oject applicant (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 project applicanibenefittinn Country Club/g„lf ,,,,,,r�o 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. Page 1 of 3 December 16, 2021 Regular Board Meeting Agenda Packet- Page 67 of 216 Page 4 of 12 DRAFT 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 consent by Central San customers and any jurisdiction having authority over all or portions of the SWRF Project, including the applicable water purveyor, a city, town, and/or Contra Costa County. C. Guiding Principle 3: Wastewater Supply Availability 1. 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 1. 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 project applican!b8RefittiRg G,,,,,,+r„ ClUbin„if 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: Page 2of3 December 16, 2021 Regular Board Meeting Agenda Packet- Page 68 of 216 Page 5 of 12 DRAFT 1. TwoG-ne-year terms will be used in all fut�preliminary MOUs and planning agreements, while longer terms (20-30 years) will be used for diversion and/or operations and maintenance agreementswith a proyicien to evteRd the term hi written mutual al nonsent 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 3 of 3 December 16, 2021 Regular Board Meeting Agenda Packet- Page 69 of 216 ATTAPMA 911�11+ 2 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_g 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 project applicant. 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 project applicant. 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 December 16, 2021 Regular Board Meeting Agenda Packet- Page 70 of 216 Page 7 of 12 DRAFT consent by Central San customers and any jurisdiction having authority over all or portions of the SWRF Project, including the applicable water purveyor, a city, town, and/or Contra Costa County. C. Guidin_g Principle 3: Wastewater Supply Availability 1. 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 1. 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 project applicant will need to be reimburse Central San for that additional cost and remedy the cause. E. Guidin_g 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: 1. Two-year terms will be used in all preliminary MOUs and planning agreements, while longer terms (20-30 years) will be used for diversion and/or operations and maintenance agreements. 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 December 16, 2021 Regular Board Meeting Agenda Packet- Page 71 of 216 Item 9. (Updated Presentation) PROPOSED GUIDING PRINCIPLES FOR SATELLITE WATER RECYCLING FACILITIES -_ Melody LaBella, P.E. Resource Recovery Program Manager :- Board Meeting December 16, 2021 A. GUIDING PRINCIPLE 1 : COST NEUTRALITY Satellite Water Recycling Facility (SWRF) Projects will be cost neutral to Central San ratepayers. 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. 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 project applicant. 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 project applicant. 1 A. GUIDING PRINCIPLE 1 : COST NEUTRALITY (CONTINUED) 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. 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. ' 3 B. GUIDING PRINCIPLE 2: COMMUNITY Community 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 input by Central San customers and any jurisdiction having authority over all or portions of the SWRF Project, including the applicable water purveyor, a city, town, and/or Contra Costa County. I4 CFNTPAI SAW 2 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. 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. 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. 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. ' 5 FRUFFT-TIRT M, 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. 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 project applicant will need to be reimburse Central San for that additional cost and remedy the cause. ' 6 3 E. GUIDING DRINCIPLE 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: Two-year terms will be used in all preliminary memorandums of understanding (MOUs) and planning agreements, while longer terms (20-30 years) will be used for diversion and/or operations and maintenance agreements. Completion of a feasibility study by the project applicant will be required. Details of the study contents will be determined by Central San staff. RECOMMENDED BOARD ACTION Consider the information and either: Approve the proposed Guiding Principles for Satellite Water Recycling Facility Projects, as presented; or Provide other direction to staff. I $ 4 QUESTIONS? CENTRAL SAN ' 9 5