Fairfield-Suisun Sewer District 1010 Chadbourne Road Fairfield, California (707) Gregory G. Baatrup, General Manager

Transcription

1 Fairfield-Suisun Sewer District 1010 Chadbourne Road Fairfield, California (707) Gregory G. Baatrup, General Manager Board of Directors Meeting Agenda Meeting Date: Monday, November 28, 2016 Meeting Place: Meeting Time: 1. Roll Call 2. Pledge of Allegiance 3. Public Comments 4. Board Comments 1010 Chadbourne Road Fairfield, California 6:00 p.m. Board of Directors Chuck Timm. President Mike Segala, Vice President Pam Bertani Jane Day Mike Hudson Catherine Moy Harry Price Pete Sanchez Rick Vaccaro Lori Wilson 5. General Manager Report 6. Consent Calendar/Action Items Page (a) Approve Minutes of Meeting of October 24, Discussion/Action Items (a) Approve Resolution No , Establishing the Regular Meeting Schedule for (b) 2016 Sewer Service Charge and Capacity Fee Study Update...6 (c) Presentation on District Energy Usage and Opportunities Information Items (a) Pretreatment Program Modifications...14 (b) Board Calendar End of Agenda Teleconference Notice: Director Jane Day will be participating from a teleconference location at 301 Morgan Street, Suisun City, CA The Fairfield-Suisun Sewer District will provide reasonable disability-related modification or accommodation to a person with a disability who requires a modification or accommodation in order to participate in the meeting of the Board of Directors. Please contact us at (707) at least 48 hours before the meeting if you require such modification or accommodation. Documents that are disclosable public records required to be made available under California Government Code Section (b) (1) and (2) are available to the public for inspection at no charge during business hours at our administrative offices located at the above address. Members of the public may speak on any matter within the jurisdiction of the Fairfield-Suisun Sewer District by filling out a speaker s request card, available on the table adjacent to the entrance to the board meeting room, and submitting the card to the District Clerk. Comments not listed on the agenda will be taken under Public Comments. Comments on matters appearing on the agenda will be taken during consideration of the item.

2 Fairfield-Suisun Sewer District minutes 1010 Chadbourne Road Fairfield, CA Telephone (707) Date: October 24, 2016 Meeting Place: 1010 Chadbourne Road, Fairfield, California Meeting Time: 6:00 p.m. 1. Roll Call. The meeting was called to order with the following members present: Directors Hudson, Bertani, Sanchez, Day (by teleconference), Wilson (arrived at 6:15pm), Price, Segala, and Timm. Directors Vaccaro and Moy were absent. 2. Pledge of Allegiance was led by Director Timm. 3. Public Comments None. 4. Board Comments Director Price complimented all District staff that assisted with the Lystek Opening. He commented that it is a major accomplishment and brought tremendous attention to the District. 5. Quarterly General Manager Report General Manager Baatrup noted that the public/private partnership with Lystek continues to be very successful and brings attention and interest in the work being done. He also reported that the Utility of the Future flag is now in the Board Room. This award also brings positive attention to the District for our implementation of innovative solutions and opportunities for the organization. 6. Consent Calendar/Action Items: (a) Minutes of Meeting of September 26, Upon motion by Director Sanchez, seconded by Director Price, the Consent Calendar was approved/adopted by the following roll call vote: AYES: Hudson, Bertani, Sanchez, Day, Price, Segala, and Timm. NOES: None ABSENT: Vaccaro, Moy, and Wilson 7. Discussion/Action Items: (a) Approve Resolution No , Adopting a Mitigated Negative Declaration and Mitigated Monitoring Report Program for the Blower Replacement Project (2016) General Manager Baatrup provided a brief background and responded to comments from the Board. A motion to approve the Resolution was made by Director Segala and seconded by Director Price. Resolution No , adopting a Mitigated Negative Declaration and Mitigated Monitoring Report Program for the Blower Replacement Project (2016) was passed/adopted by the following roll call vote: 2

3 Minutes October 24, 2016 Page 2 of 2 AYES: Hudson, Bertani, Sanchez, Day, Price, Segala, and Timm. NOES: None ABSENT: Vaccaro, Moy, and Wilson (b) Receive Independent Auditors Report for FY 2015/16 Sheldon Chavan from Chavan & Associates, LLP presented the auditors findings. Chavan & Associates, LLP will release a final report which will be included in the CAFR for FY 2015/16. This is the third year Chavan & Associates has audited the District. Helen Gaumann, Director of Administrative Services, added that the District continues to have successful audits and save money because of the hard work from the Finance Department (Olivia Ruiz, Accountant, and Carina Bejarano, Finance Technician). (c) Receive Presentation on Utilizing District Facilities to Process Organic Materials General Manager Baatrup gave a presentation to inform the Board of Directors of recent discussions regarding the expansion of the Lystek OMRC. He stated the next steps would be a meeting with Lystek representative to further discuss the revenue stream, facility impact, and report back to the Board. Following his presentation General Baatrup answered questions and comments from the Directors. Director Segala noted than an agreement should be established to ensure any sales tax be divided amongst Fairfield and Suisun City. 8. Information Items: (a) Quarterly Investment Report. No comments. (b) Board Calendar. No comments. Respectfully submitted, The meeting adjourned at 7:25 p.m. ATTEST: President District Clerk 3

4 November 21, 2016 MEMORANDUM TO: FROM: SUBJECT: Board of Directors Greg Baatrup, General Manager Board Calendar Recommendation: Approve Resolution No , establishing the regular meeting dates for the Executive Committee and Board of Directors for Background: The Board of Directors has established the 3 rd Monday of every month for the Regular Executive Committee Meeting and the 4 th Monday of each month for Regular Board of Directors meetings. Certain months (February, August, and December) are not scheduled as these have conflicts and it is unlikely a quorum will be present to conduct business. Attachment: Resolution No

5 FAIRFIELD-SUISUN SEWER DISTRICT RESOLUTION NO A RESOLUTION ESTABLISHING THE REGULAR MEETING SCHEDULE FOR 2017 WHEREAS, the Fairfield-Suisun Sewer District Act establishes a Board of Directors and the Board of Directors established an Executive Committee of the Board; and, WHEREAS, the California State Legislature passed the Ralph M. Brown Act in 1953 guaranteeing the public s right to attend and participate in meetings of local legislative bodies; and, WHEREAS, Board of Directors desires to provide advanced notice to the public of its regular meetings; NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FAIRFIELD- SUISUN SEWER DISTRICT that Table 1 is the adopted schedule for regular meetings of the Board of Directors and the Executive Committee for Table 1 Month Executive Committee Board of Directors January 4:30 pm, Monday, January 16 6:00 pm, Monday, January 23 February No Meeting No Meeting March 4:30 pm, Monday, March 20 6:00 pm, Monday, March 27 April 4:30 pm, Monday, April 17 6:00 pm, Monday, April 24 May 4:30 pm, Monday, May 15 6:00 pm, Monday, May 22 June 4:30 pm, Monday, June 19 6:00 pm, Monday, June 26 July 4:30 pm, Monday, July 17 6:00 pm, Monday, July 24 August No Meeting No Meeting September 4:30 pm, Monday, September 18 6:00 pm, Monday, September 25 October 4:30 pm, Monday, October 16 6:00 pm, Monday, October 23 November 4:30 pm, Monday, November 20 6:00 pm, Monday, November 27 December No Meeting No Meeting All the above meetings shall be held at the District Administrative offices at 1010 Chadbourne Road, Fairfield, California. The General Manager is hereby authorized and directed to take all steps necessary and proper to implement this resolution in accordance with District policies and procedures. PASSED AND ADOPTED this 28 th day of November 2016, by the following vote: AYES: NOES: ABSENT: Directors Directors Directors President ATTEST: District Clerk 5

6 November 17, 2016 FI MEMORANDUM TO: FROM: SUBJECT: Executive Committee Greg Baatrup, General Manager 2016 Sewer Service Charge and Capacity Fee Study Update Recommendation Staff to provide a status report to the Board during the November 2016 Board of Directors Meeting. Background In January 2016, the Board authorized a Consulting Services Agreement with Bartle Wells Associates to conduct an update to the 2005 Cost of Service and Rate Study (2005 Rate Study). The rates to be evaluated in the 2016 Sewer Service Charge and Capacity Fee Study (2016 Rate Study) include sewer service charges and capacity fees. A brief update on the progress of the evaluation is discussed below. Sewer Service Charge Evaluation Sewer service charges are the reoccurring charges for the use of the sewerage system and are designed to help recover the costs of operating and maintaining the sewerage infrastructure. Table 1 presents sewer service charge changes from the 2005 Rate Study. Each class had a different rate distribution so that each class pays a proportionate share of the burden on the District s system. These recommended adjustments were applied to sewer service charges that were presented in the January 2012 Prop 218 notice. The charges that were implemented were equal or less than the amounts in the Prop 218 notice based on the Board s action on each budget. Overall, this resulted in an approximate 7% year-over-year increase in total revenue. The Budget and Long-Term Financial Plan adopted in March 2015 forecasted an approximate 3.5% rate increase year-over-year increase in FY 2017/18 and for subsequent 4 years. The budgeted costs are allocated to each customer class based on wastewater flow and strength. Because there has been some significant changes in wastewater flow and strength, the allocation of costs is being updated in this study. Table 1 reflects the rates following the cost allocation process. 6

7 2016 Rate Study Update November 17, 2016 Page 2 of 3 Table 1 Customer Class FY 2014/15 Rate Increase FY 2016/17 Rate Increase FY 2017/18 Draft Rate A. Residential Rate $ % $ % $37.46 B. Commercial, Regular Strength $ % $ % $3.01 C. Commercial, Special Strength $ % $ % $5.12 D. Industrial, Regular Strength $ % $ % $2.83 E. Travis Airforce Base $ % $ % $2.25 F. Industrial, Case-by-Case F.1 Flow charge per million gallon $2, % $2, % $2, F.2 Plus BOD charge per thousand lbs. of BOD $ % $ % $ F.3 Plus SS charge per Thousand lbs. of SS $ % $ % $ G. Anheuser Busch G.1 Flow charge per million gallon $2, % $2, % $2, G.2 Plus BOD charge per thousand lbs. of BOD $ % $ % $ G.3 Plus SS charge per Thousand lbs. of SS $ % $ % $ Capacity Fee Update Sewer capacity fees are one-time fees charged to new or expanding connections to the District s sewer system, and are designed to help recover the costs of infrastructure benefiting new development. Capacity Fees have been unchanged since Fiscal Year Since the last change 23 year ago, there have been significant changes in the District s Capital Program and development to fund the Capital Program. Therefore, Bartle Wells Associates was also retained to update the calculation for capacity fees. The Consultant has presented a preliminary evaluation of capacity fees and staff is working with the Consultant to bring forward a recommendation to the Board. The preliminary evaluation indicates the following: The capacity of the plant has been expanded to meet build-out projections and in general, there are no new funds needed for the plant. Any future funding needed would be for expansions of the collection and conveyance systems. Therefore, the capacity fee should convert from a future expansion fee to a hybrid of future expansion and a buy-in fee. Capacity fees should be increased from $5,943 to $6,651 for a single-family residential home, commercial and industrial classes. The old calculation method for commercial projects should change from a landarea based calculation to a building size/customer-type calculation. Discussion The 2016 Rate Study Project schedule calls for meetings with stakeholders in the Fall of 2016, especially those who have requested advanced notice of change a recommended Prop 218 notice to be approved for circulation in January 2017, and a Rate Ordinance to be approved in March

8 2016 Rate Study Update November 17, 2016 Page 3 of 3 Staff has subsequently gathered additional flow and strength data. Incorporating the additional data, staff updated the analysis and recommends the rates in Table 1 be shared with stakeholders. Following the stakeholder engagement, the rates will be presented in a draft Prop 218 notice to the Board for consideration in January Staff recommends the Executive Committee review and discuss the recommendations. 8

9 November 17, 2016 MEMORANDUM TO: Executive Committee THROUGH: Greg Baatrup, General Manager FROM: SUBJECT: Talyon Sortor, Assistant General Manager District Energy Usage and Opportunities Recommendation: Receive report and file. Background: Over the years, the District has implemented and advanced several energy management strategies. The most significant are the self-generation and renewable energy sources. Staff continues to monitor emerging generation technologies as well as energy conservation projects. Staff will provide a presentation at the Board meeting on current practices and the upcoming opportunities. A draft of the presentation is included for the Committee s review and comment. Attachments: Presentation Slides 9

10 11/17/2016 Energy Sources Installed Co-Generation (Power/Heat) 900 Kilowatt Engine/Parallels Utility (2002) 70% Biogas/30% Natural Gas Blend 400 Kilowatt Engine/Dedicated Load (1982) 100% Biogas 1 Megawatt Solar PPA (2010) 50 Kilowatts Wind (2009) 10

11 11/17/2016 Annual Energy Management Plant Average Demand is 1.2 Megawatts 2016 Treatment Plant Generation Utility 29% 2016 Power Sources 1 Solar 20% Wind 2% 1: through 11/8/2016 Solar Wind Cogen Utility Cogen 49% Reduced Impact of Future Utility Rate Increases Peak Energy Management Summer Afternoon Power is Most Expensive Export Excess Solar Generation Account Credited at Peak Power Rates Option R - $0.14 to $0.32 Solar/Wind Generation Highest at Best Time Always Looking for ways to Optimize Savings 11

12 11/17/2016 Opportunities 1. Lystek Increased Gas Production Lower Import of Natural Gas Need Systems to Maximize Use of Biogas Currently Flare Some Biogas Around 10% 2. Emerging Technologies Battery Systems Not Currently Cost Effective Opportunities 3. PG&E Sustainable Solutions Turnkey Program PG&E Team that can Design-Build Projects Government Code Section 4217 Preliminary Assessment Completed All Work Done to Date at PG&E Teams Expense Several Process Improvements Identified Primary Recommendation to Install new Cogen Engine New Technologies More Efficient 40% vs 26% at similar Operating Cost Better Controls to Maximize Biogas Use Use Current Engine as Backup/Demand Response (14 Years Old) 12

13 11/17/2016 Projects Under Consideration New Cogen Engine Benefit to District Fully Utilities Biogas as Production Increases Increased Power Production so we can Export More Solar Lower Demand Charges Extend life of Energy Recovery Facility by Adding New Engine Potential Incentive Money Apply in February 2017 Expected Less Than 10 Year Payback Recommendations/Plan Forward Continue to Track new Technologies Continue to Track Changes in Laws/Regulations Electrical Export Limits Emissions Requirements Look for ways to Better Utilize Biogas Upgrade Controls on Existing Engine Further Study New Cogen Option Feasibility Study Ready to Apply for Incentives in February 13

14 11/17/2016 Questions 14

15 November 17, 2016 SC-110 MEMORANDUM TO: Executive Committee THROUGH: Greg Baatrup, General Manager FROM: SUBJECT: Meg Herston, Environmental Compliance Engineer Pretreatment Program Modifications Recommendation Receive report and file. Background The Federal Pretreatment Regulations were established in the 1970 s under Section 307(b) of the Clean Water Act. These regulations set forth pretreatment standards for the protection of publically owned wastewater treatment facilities. The General Pretreatment Regulations aim to prevent the introduction of pollutants into public sewer systems that could interfere with plant operation, pass through the plant untreated, or cause contamination of the treatment plant sludge. A major component of any local pretreatment program is local limits. These discharge limits are calculated specifically for each individual treatment plant. The District is required to periodically review and recalculate these local limits to ensure adequate plant protection. In October 2015, the District completed a comprehensive review of its local limits, and submitted a request to the San Francisco Bay Regional Water Quality Control Board (Regional Board) and the Environmental Protection Agency (EPA) for modification of its local limits. The modifications will remove limits for certain hydrocarbons and phenolic compounds that have outdated definitions and/or out-of-date analytical methods associated with them. Discussion These local limit updates will notably improve program administration and reduce unnecessary monitoring while continuing to protect District treatment and collection facilities. Because this change constitutes a relaxation of local limits, Federal law requires public review and written approval from the Regional Board. The Regional Board has tentatively approved the changes, pending public review and District Board approval. The District intends to begin a 30- day public review period for the modifications this month. Following the public review, a revised Waste Discharge Ordinance will be presented to the Board of Directors for approval. Attachment: Notice of Submission: Pretreatment Program Modifications 15

16 NOTICE OF SUBMISSION OF REQUEST FOR APPROVAL FAIRFIELD-SUISUN SEWER DISTRICT PRETREATMENT PROGRAM MODIFICATIONS November 28, 2016 In accordance with 40 CFR , the Fairfield-Suisun Sewer District (District) submitted a request to the California Regional Water Quality Control Board (RWQCB) on October 15, 2015 for modification of its local limits. Because this change relaxes local limits, it is considered a substantial modification of the District s Pretreatment Program. The following local limit changes are proposed to improve program administration while continuing to protect the District s publically-owned treatment wastewater facilities: Removal of limits for total identifiable chlorinated hydrocarbons (TICH) and phenolic compounds: These limits were developed based on past definitions, making compliance determination difficult using current methods. The District s 2015 Local Limits Evaluation examines all detected organics and does not find any requiring local limits. Removal of the existing total petroleum hydrocarbon (TPH) limit: There is no EPAapproved analytical method for TPH in wastewater, and the District proposes a more stringent benzene, toluene, ethylbenzene, and xylene (BTEX) limit for worker health and safety. Adoption of a single numeric limit for Oil & Grease. In accordance with 40 CFR (b)(1) and 40 CFR (c)(3) this modification may be approved without a public notice of decision at the end of the public review period and review by the RWQCB if: No comments are received by December 31, 2016; No substantive comments are received; and There are no changes to the proposed modifications as a result of this public notice. Anyone may submit written comments or provide comments or request a public hearing on this proposal within 30 days of this notice. If no comments on this notice are received, the proposed modification will be approved as set forth within and without changes and without further public notice. The public comment period begins on: November 30, 2016 The public comment period ends on: December 31, 2016 The proposed Wastewater Discharge Ordinance and Local Limit review documents can be viewed online at A hard copy is available for viewing by the general public at: Fairfield-Suisun Sewer District 1010 Chadbourne Road Fairfield, CA

17 The proposed pretreatment program modification will be considered for adoption by the District Board of Directors at its January 23, 2017 meeting. Comments regarding the proposed modifications should submitted in writing via mail or to: Meg Herston, Environmental Compliance Engineer Fairfield-Suisun Sewer District 1010 Chadbourne Road Fairfield, CA Fax: (707)

18 November 21, 2016 MEMORANDUM TO: FROM: Board of Directors Greg Baatrup, General Manager SUBJECT: Board Calendar Recommendation: Review and comment as necessary on the calendar items. Background: Attached is a listing of the contemplated agenda items for the next 12 months and a recap of the non-routine agenda items (i.e. Minutes, General Manager s report, etc.). These are provided as a recap of action from the last 12 months and as a look ahead for the next 12 months. The contemplated agenda items may vary from the table as issues and priorities change overtime. Attachment: Board Calendar 18

19 Fairfield-Suisun Sewer District Contemplated and Recent Board of Directors Agenda Items November 22, 2016 Month Year November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 Contemplated Board of Directors Meeting Agenda Items 1. Board Meeting Schedule Presentation 2016 Rate Study Results and Recommendations 3. Presentation District Energy Usage and Opportunities 1. Quarterly General Manager Report 2. Quarterly Investment Report 3. Authorization to Bid Blower Project 4. Board of Directors CASA Report Winter Conference 5. Approve Proposition 218 Notice 6. Election of Officers/Executive Committee 1. Ordinance amending Storm Drain Maintenance Charges 2. Board of Directors Report on CASA DC Conference 3. Approve Budgets for FY 2017/8 and FY 2018/19 4. Approve Award of Construction Services Agreement, Blower Project 5. Approve Sewer Service Charges and Capacity Fees 1. Quarterly General Manager Report 2. Quarterly Investment Report Executive Committee Board of Directors 11/21/ /28/2016 Not Scheduled Not Scheduled 1/16/2017 1/23/2017 Not Scheduled Not Scheduled 3/20/2017 3/27/2017 4/17/2017 4/24/2017 5/15/2017 5/22/2017 June 2017 July 2017 August Re-adopt the Investment Policy 2. General Manager Performance Evaluation 1. Quarterly General Manager Report 2. Quarterly Investment Report 6/19/2017 6/26/2017 7/17/2017 7/24/2016 Not Scheduled Not Scheduled September /18/2017 9/25/2017 October Quarterly General Manager Report 2. Quarterly Investment Report 3. Independent Auditors Report for FY 2016/17 4. Consider dates and topics for Board Workshop 10/16/ /23/2017 Page 2 of 3 19

20 Month Year November 2015 December 2015 Not Scheduled Recent Non-routine Agenda Items January 1. Quarterly General Manager Report Quarterly Investment Report 3. Board of Directors CASA Report Winter Conference 4. Authorize General Manager to Execute a Consulting Services Agreement for the Rate Study Election of Officers/Executive Committee 6. Board Member Compensation February 2016 Not Scheduled March 2016 April 2016 May 2016 June 2016 July 2016 August Receive Presentation on Updated Website 2. Discuss Board Workshop 3. Adopt Resolution setting Executive Committee and Board of Directors Meeting Schedule for Approve Board Travel Policy 2. Code of Conduct Policy 3. Resolution Updating Conflict of Interest Code 4. Board of Directors Report on CASA DC Conference 1. Quarterly General Manager Report 2. Resolution Awarding Construction Contract for Primary Clarifier #1 and Headworks Repair 3. Quarterly Investment Report 4. Outreach Report on Earth Day 5. Tour of Lystek Organic Materials Recycling Center 1. MOU with SFPUC for Processing Biosolids at OMRC 2. Report on 2016 Compensation Study 3. Board of Directors directs Executive Committee to prepare General Manager Performance 1. Resolution re-adopting the investment policy 2. Resolution authorizing the District pre-pay interagency loan with City of Fairifeld for the Train 3. Resolution authorizing a contract with Solano County County for legal services and appointing 4. Resolution authorizing paying and reporting EPMC 5. Resolution adopting pay rate schedule 1. Quarterly General Manager Report 2. Quarterly Investment Report 3. Resolution accepting big and awarding contract for the 2016 Treatment Plant Rehabilitation Project 4. Receive report on 2016 Rate study 5. Receive report on upcoming 61st annual CASA Conference Not Scheduled 1. Authorize Consulting Services Agreement for the Development of Outreach Video Series September 2. Tabled decision to produce a District newsletter Approved the Distribution of a Press Release on the District's Recognition as a Utility of the 4. Received report on Rate Study 1. Quarterly General Manager Report 2. Resolution adopting a Mitigated Negative Declaration and Mitigated Monitoring Report Program October for the Blower Replacement Project (2016) Receive Independent Auditors Report for FY 2015/16 4. Receive Presentation on Utilizing District Facilites to Process Organic Materials 5. Quarterly Investment Report Page 3 of 3 20