Loading...
HomeMy WebLinkAboutReal Estate, Environmental & Planning MINUTES 01-26-22Page 2 of 7 LCENTRAL SAN REGULAR MEETING OF THE BOARD OF DIRECTORS CENTRAL CONTRA COSTA DAB'°R. WILLIAMS President SANITARY DISTRICT BARBARA D. HOCKETT REAL ESTATE, ENVIRONMENTAL President Pro Tem & PLANNING COMMITTEE MARIAHELR.MCGILL MICHAEL R. MCGILL TAD J PILECKI MIN U T E S PHONE: (925) 228-9500 FAX.- (925) 372-0192 Wednesday, January 26, 2022 www.centralsan.org 9:00 a.m. (All attendees participated via video conference) Committee: Chair Barbara Hockett Member David Williams Guest: Russell Driver, ARC Alternatives (left after Item 5.a.) Staff. Roger S. Bailey, General Manager Katie Young, Secretary of the District Jean -Marc Petit, Director of Engineering and Technical Services Danea Gemmell, Planning and Development Services Division Manager Melody LaBella, Resource Recovery Program Manager Mary Lou Esparza, Laboratory Program Administrator Rita Chen, Associate Engineer Blake Brown, Supervising Chemist Russ Leavitt, Engineering Assistant III (left after Item 5.a.) Amelia Berumen, Assistant to the Secretary of the District Notice This meeting was held virtually in accordance with the Brown Act provisions stipulated in Assembly Bill (AB) 361 and adopted by the Central San Board of Directors on January 13, 2022 via Resolution 2022-004. The agenda included instructions with options in which the public could participate in the meeting. 2. Call Meeting to Order Chair Hockett called the meeting to order at 9:00 a.m. February 3, 2022 Regular Board Meeting Agenda Packet - Page 67 of 72 Page 3 of 7 Real Estate, Environmental & Planning Committee Minutes January 26, 2022 Page 2 3. Public Comments None. 4. Consent Items a. Review draft Position Paper to adopt Resolution No. 2022- accepting a Grant of Easement for 2007 Scarlet Oak Place, Danville, related to Job 2788, Lot 7 (Parcel 5) and authorizing staff to record document with the Contra Costa County Recorder b. Review draft Position Paper to adopt Resolution No. 2022- authorizing execution of a Common use Agreement with the City of San Ramon for the Iron Horse Corridor at Bollinger Canyon Road, San Ramon, and authorizing staff to record the document with the Contra Costa County Recorder COMMITTEE ACTION: Recommended Board approval. 5. Items for Committee Recommendation to Board a. Review draft Position Paper to approve a new District project to support Central San's Solar Project on the Lagiss Property and authorize the General Manager to: 1) transfer $600,000 from the Fiscal Year 2021-22 Capital Improvement Budget contingency fund to the new project, 2) pay an approximate $533,000 PG&E interconnection fee, and 3) incorporate the new resulting solar energy price of $0.0857 per kilowatt-hour into Amendment 1 of Central San's Power Purchase Agreement with REC Solar Ms. LaBella presented the information provided in the agenda materials. She stated that in the original plan, REC Solar was to be the financier and pay the PG&E interconnection fee and that cost was incorporated into the solar energy rate offered in their proposal. Upon further review, it was deemed more cost effective for Central San to pay the PG&E fee directly to obtain a lower overall cost. The Board approved an amendment to the existing REC Solar power purchase agreement at its last Board meeting, which is in development. With Board approval of the proposed direct payment of the PG&E interconnection fee, staff would like to also include the resulting lower solar power rate into the amendment. Member Williams inquired when the final solar rate would be set and who would control. Ms. LaBella replied that it is out of the District's control, since the final rate and overall project cost depends on both the environment mitigation costs (which will not be known until four biological surveys for the presence of burrowing owls are conducted this year) and the final construction cost to REC Solar (which may be impacted by the rising cost of steel and competitive construction market) are determined. Mr. Petit interjected that similar aspects have also been impacting Central San's capital projects. February 3, 2022 Regular Board Meeting Agenda Packet - Page 68 of 72 Page 4 of 7 Real Estate, Environmental & Planning Committee Minutes January 26, 2022 Page 3 Moreover, material costs (i.e., steel) are also being monitored and it is hoped project material costs will soon be locked in. Mr. Driver stated that his firm is aware of all the issues currently in motion as mentioned above. He stated that the price of steel has been going up, but that a corresponding change order has not yet been negotiated with REC Solar. The cost for the required fire road access is also in review and an update to the subconsultant's estimate is underway since it has been a while that the initial estimate was made. He anticipated having such pending issues resolved within the next few months. Regarding financial analysis (slide 4), Ms. LaBella highlighted the overall positive impact of Scenario 4 for Central San. By directly paying the PG&E interconnection fee, the net -present value increases. She mentioned that Director of Finance and Administration Philip Leiber suggested and supported that staff consider the net -present value in determining the best approach for Central San. Ms. LaBella mentioned should the Board approve this approach, Duke Energy would be reimbursed $30, 000 for the initial deposit they made for the PG&E interconnection, and the balance of the estimated $533, 000 fee would be paid directly to PG&E. Member Williams advised he would recommend Board approval based on two key points. One being the environmental benefit of having a solar project. The second being the financial advantage of having this as a capital project with a one -to -five year payback. Chair Hockett concurred. COMMITTEE ACTION: Recommended Board approval. 6. Other Aaenda Items a. Review Committee Charter as set forth in Board Policy No. BP 013 - Standing Committee Protocols, Guidelines and Charters COMMITTEE ACTION: Reviewed the Charter. b. Receive written report on the most recent meetings of the Bay Area Clean Water Agencies (BACWA) Staff discussed the details provided in the written report in the agenda packet. Items of particular note are summarized below. Nutrients: Member Williams reflected on past discussion of a move to a "one - bay" approach, as well as a nutrient flow change that would occur with Sacramento Regional coming online that would also help those that discharge February 3, 2022 Regular Board Meeting Agenda Packet - Page 69 of 72 Page 5 of 7 Real Estate, Environmental & Planning Committee Minutes January 26, 2022 Page 4 into Suisun Bay. He inquired why treatment plants that discharge into Suisun Bay would be required to have a capital project to remove nutrients. Mr. Petit responded that while each BACWA member agency discharges nutrients into the Bay, there has not been any correlation between the nutrient amount present in the effluent and possible impact to the water quality, such as harmful algae bloom increase, probably because of low -light penetration. He opined it will be a continued debate. Further, he mentioned that the larger the agency, the more costly it would be to reduce the nutrient and it has been hard to define each "subebayment" as it is really the Bay as a whole. Mr. Petit stated the new Sacramento Regional plant, which is now removing nutrient, is online and a reduction has been measured in the Sacramento River, which discharges into Suisun Bay. Ms. Esparza added that in looking at source apportionment, the San Francisco Regional Board selected to go with the whole -Bay approach. She opined the one -bay approach looks as protective as the subebayment-based caps concept previously presented and noted the whole bay is within the allotment and appears to be the way to go at this time. Member Williams concluded this is a complicated issue with many moving parts. He advised staff to key a watchful eye and do what is supported by scientific evidence; as well as keeping public resources in consideration. Biosolids: Mr. Petit referred to the Biosolids Trends Survey Report link provided in the memorandum with most treatment plants using anaerobic digestion producing either Class A or Class B Biosolids. The report also referred to some plants sending biosolids to Lystek in Fairfield who has been working with agencies to treat biosolids materials to produce fertilizer. He reminded the Committee that Central San used Lystek in the past in conjunction with the Emergency Sludge Loading Facility Improvement project to test the functionality of the upgrades to that facility. PFAS: Ms. Esparza provided an overview of the upcoming San Francisco Estuary Institute workshop in February that will continue discussion and education of regulatory and legislative matters. Ms. LaBella opined the workshop is a great opportunity for a grass -roots effort to stop PFAS upstream and is timely in advance of pending legislative efforts. Member Williams inquired whether the consultant team that is part of the second phase of the Solids Handling Facility Improvements Project will review sludge regulations. Mr. Petit replied yes, and part of the upcoming Biosolids Phase 2 project will include how to deal with PFAS in the solids. Heat thermal processing and heat incinerators help with digestion, depending on type of heat source, which will be studied. February 3, 2022 Regular Board Meeting Agenda Packet - Page 70 of 72 Page 6 of 7 Real Estate, Environmental & Planning Committee Minutes January 26, 2022 Page 5 Sanitary Sewer Systems Waste Discharge Requirements: Member Williams asked if anything onerous may be anticipated, acknowledging the draft report was not yet available. Mr. Petit stated there had been discussion to include reporting requirements for sewer overflows of private sewer laterals. He stated it would be hard to regulate and unmanageable, and noted other agencies were of the same opinion. Ms. Gemmell added that Collection System Operations and Planning staff will be updating the District's Sewer System Management Plan (SSMP). Air: Ms. Chen spoke about the recently adopted Regulation 2 amendments. She mentioned there is one `overburdened community' near the District. Moving forward, applying for permits for projects will need to comply with the 6-in-a-million cancer risk limit. A public notification component will be a part of the requirement; however, it has not yet been published. Mr. Petit mentioned staff is in the process of completing a Request for Qualifications for consultant assistance for air quality modeling services. Member Williams inquired about the Solids Conditioning Building work and the addition of new pollution control equipment. He asked what impacts may occur with new regulations. Ms. Chen advised that based on an internal Health Risk Assessment (HRA), the new scrubbers should meet the proposed limits. However, the new consultant will be tasked to assist with conducting a new HRA to confirm the new scrubbers will meet the limit. COMMITTEE ACTION: Received the update. 7. Announcements: Mr. Bailey announced that he and Mr. Petit will be attending the National Association of Clean Water Agencies (NACWA) Winter Conference this Sunday through Thursday in Scottsdale, Arizona. Additionally, as Mr. Bailey is a NACWA Board Member, he will also attend their Board meeting during the conference. 8. Suggestions for future agenda items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items Mr. Bailey mentioned the Carbon Net -Zero Viability item on the provided list was a request by the Board for an analysis of the feasibility for the District to be carbon -neutral/ -zero. He stated the term net -zero needs to be defined, therefore, staff will bring forth an agenda item at the February Committee meeting, then to the full Board, to begin the conversation. COMMITTEE ACTION: Received the list. February 3, 2022 Regular Board Meeting Agenda Packet - Page 71 of 72 Page 7 of 7 Real Estate, Environmental & Planning Committee Minutes January 26, 2022 Page 6 9. Future scheduled meeti Wednesday, February 23, 2022, at 9:00 a.m. Wednesday, March 23, 2022, at 9:00 a.m. Wednesday, April 20, 2022, at 9:00 a.m. 10. Adjournment — at 9:48 a.m. February 3, 2022 Regular Board Meeting Agenda Packet - Page 72 of 72