monterey regional water pollution control agencymontereyonewater.org/docs/meetings/2016-08-12/august...

Monterey Regional Water Pollution Control Agency “Dedicated to meeting the wastewater and recycled water needs of our member agencies, while protecting the environment.”

Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey,

Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

AGENDA

BUDGET/PERSONNEL COMMITTEE (BPC)

Thomas P. Moore, Chair Dennis Allion, Gloria De La Rosa, Ron Stefani

[Linda Grier – Alternate]

DATE: Friday, August 12, 2016

TIME: 12:30 pm

LOCATION: Admin Conference Room 5 Harris Court, Building D Monterey, CA 93940

1. CALL TO ORDER

2. ROLL CALL

3. PUBLIC COMMENTS Anyone wishing to address the Committee on matters not appearing on the Agenda may do so now. Comments on any other matter listed on the Agenda are welcome at the time the matter is being considered by the Committee.

4. APPROVE BPC MINUTES FOR JULY 8, 2016 1-5

5. BUDGET AMENDMENTS AND AGENCY RESERVES UPDATE 6

6. UPDATE ON ZERO WASTE ENERGY (ZWE) ANAEROBIC DIGESTER AND

PG&E CONTRACTS

7-8

7. CONSIDER RECOMMENDING APPROVAL OF A RESOLUTION AUTHORIZING PURCHASE OF A TOTAL ORGANIC CARBON/TOTAL NITROGEN ANALYZER WITHOUT FORMAL COMPETITIVE BIDDING

9-12

8. CONSIDER RECOMMENDING PAYMENT OPTIONS FOR PACIFIC GROVE CAPACITY FEES

13-14

9. CONSIDER RECOMMENDING APPROVAL OF A BUDGET AMENDMENT TO FORMALIZE PAYING FOR THE ADVANCED WATER TREATMENT FACILITY (AWTF) DESIGN

15-17

10. CONSIDER RECOMMENDING APPROVAL OF AN AGREEMENT WITH SEASIDE COUNTY SANITATION DISTRICT AND THE CITIES OF MONTEREY, PACIFIC GROVE, AND SAND CITY TO PROVIDE INSPECTION SERVICES REGARDING FATS, OIL & GREASE AND STORMWATER

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11. STAFF REPORTS

12. COMMITTEE MEMBER COMMENTS/REPORTS Committee Members may ask a question for clarification, make a brief announcement or make a brief comment or report on his or her own activities within the jurisdiction of the committee. No discussion or action is appropriate other than referral to staff for consideration or setting a matter as a future agenda item.

13. CLOSED SESSION As permitted by Government Code Session 54956 et seq., the committee may adjourn to a Closed or Executive Session to consider specific matters dealing with litigation, certain personnel matters, property negotiations or to confer with the Agency’s Meyers-Milias-Brown Act representative.

A. Public Employee Performance Evaluation (Pursuant to Government Code 54957)

Title: General Manager

14. POSSIBLE ACTION ON CLOSED SESSION ITEMS

The Committee will report out on any reportable action taken during Closed Session, and may take additional action in Open Session, as appropriate.

15. ADJOURNMENT

* * * * * * * * *

This Committee Meeting Notice and Agenda was hereby posted at:

MRWPCA 5 Harris Court, Building D,

Monterey, California 93940

POSTED: Tuesday, August 9, 2016

By: /s/ Chayito Ibarra Executive Assistant/Clerk to

the Board of Directors




MINUTES

BUDGET/PERSONNEL COMMITTEE

Friday, July 8, 2016 12:31 pm to 12:54 pm

5 Harris Court, Building D

Monterey, California 93940

1. CALL TO ORDER

2. ROLL CALL

3. PUBLIC COMMENTS

4. APPROVE BPC MINUTES FOR MAY 13, 2016

5. BUDGET AMENDMENTS UPDATE

6. RECEIVE INFORMATION ON THE GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING AWARD

7. CONSIDER RECOMMENDING APPROVAL OF A RESOLUTION AMENDING PARAGRAPH 7.02 OF THE MRWPCA JOINT POWERS AGREEMENT TO SUPPORT A BORROWING AGREEMENT WITH THE STATE WATER RESOURCES CONTROL BOARD, AND REQUESTING ALL MRWPCA MEMBERS TO CONSENT TO THE PROPOSED AMENDMENT

8. CONSIDER RECOMMENDING TO THE BOARD OF DIRECTORS TO ADOPT A RESOLUTION CREATING AN EX-OFFICIO SEAT ON THE MRWPCA BOARD FOR ONE PERSON RESIDING IN THE TERRITORY COMPRISING THE JURISDICTION OF THE FORMER MOSS LANDING COUNTY SANITATION DISTRICT, FOR A TERM TO EXPIRE ON NOVEMBER 30, 2017, TO BE APPOINTED BY ACTION OF THE CASTROVILLE COMMUNITY SERVICES DISTRICT AND SUBJECT TO APPROVAL OF THE MRWPCA BOARD OF DIRECTORS

9. STAFF REPORTS

10. COMMITTEE MEMBER COMMENTS

11. ADJOURNMENT

DRAFT

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AGENDA ITEM 4

Minutes DRAFT

Budget/Personnel Committee July 8, 2016

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PRESENT: Budget/Personnel Committee Tom Moore, Chair Dennis Allion Gloria De La Rosa [arrived at 12:34 pm] Ron Stefani ABSENT:

None

PRESENT: MRWPCA Staff:

Stephen Hogg Assistant General Manager Deb Mall Assistant Legal Counsel Tori Hannah Chief Financial Officer Chayito Ibarra Executive Assistant

3. PUBLIC COMMENTS At 12:32 pm, Chair Moore called for Public Comments; none received.

4. APPROVE BPC MINUTES FOR MAY 13, 2016

Chair Moore stated that the May 13, 2016 draft Budget/Personnel Committee Minutes are presented to the Committee for their approval.

ACTION TAKEN: It was moved by Member Stefani, seconded by Member Allion, to approve the May 13, 2016 BPC Minutes and carried by the following vote:

Ayes: Moore, Allion, Stefani

Noes: None

Absent: De La Rosa

5. BUDGET AMENDMENTS UPDATE Ms. Hannah provided the Committee with a list of the budget amendments that were approved during the months of May and June. She reminded the Committee that there is no fiscal impact because staff is only allowed to move money between items that have already been budgeted for.

Information only – no action needed.

6. RECEIVE INFORMATION ON THE GOVERNMENT FINANCE OFFICERS

ASSOCIATION (GFOA) CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING AWARD Ms. Hannah stated that for the eleventh consecutive year the Agency has received the Government Finance Officers Association (GFOA) Certificate of Excellence in Financial Reporting. In order to receive this prestigious award, the Agency must publish an easily readable and efficiently organized comprehensive annual financial

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Minutes DRAFT


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report which must satisfy both generally accepted accounting principles and applicable legal requirements. Member De La Rosa arrived at 12:34 PM In response to questions from the Committee, Ms. Hannah stated there is criteria over 15 pages long that the Agency needed to meet in order to receive this award. She added that this award is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by both the government and its management. Ms. Hannah introduced the Accounting Department staff to the Committee and thanked them for all of their work.

Information Only – No Action Required

8. CONSIDER RECOMMENDING APPROVAL OF A RESOLUTION AMENDING

PARAGRAPH 7.02 OF THE MRWPCA JOINT POWERS AGREEMENT TO SUPPORT A BORROWING AGREEMENT WITH THE STATE WATER RESOURCES CONTROL BOARD, AND REQUESTING ALL MRWPCA MEMBERS TO CONSENT TO THE PROPOSED AMENDMENT Ms. Hannah stated that she has been working with the State Water Resources Control Board (SWRCB) to facilitate a State Revolving Fund (SRF) loan for the Pure Water Monterey Project. She stated that as a condition of the loan, the SWRCB is requiring the Agency to amend Section 7.02 of the existing Joint Powers Agreement (JPA). Section 7.02 of the JPA states that the JPA shall not terminate or dissolve until all revenue bond debt incurred by the Agency for the construction or acquisition of the Regional Treatment Plant has been fully paid or refinanced. The SWRCB is requesting that a similar clause be inserted to encompass any financing provided by the SWRCB. She noted that a redlined copy of the clause insertion to section 7.02 was provided to the Committee along with a copy of the draft resolution. Ms. Hannah stated that this proposed action does not modify any substantive terms of the existing JPA, other than assuring that both revenue bonds and SWRCB loans will be paid or refinanced prior to the termination of the JPA. She added that each member entity’s legislative body is required to consider and approve this action. A unanimous approval from all member entity’s legislative bodies is required for this amendment to become effective.

ACTION TAKEN: It was moved by Member De La Rosa, seconded by Member Stefani, to recommend to the Board to approve a resolution amending Section 7.02 of the JPA, and carried by the following vote:

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Minutes DRAFT


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Ayes: De La Rosa, Allion, Grier

Noes: None

Absent: Fischer

9. CONSIDER RECOMMENDING TO THE BOARD OF DIRECTORS TO ADOPT A RESOLUTION CREATING AN EX-OFFICIO SEAT ON THE MRWPCA BOARD FOR ONE PERSON RESIDING IN THE TERRITORY COMPRISING THE JURISDICTION OF THE FORMER MOSS LANDING COUNTY SANITATION DISTRICT, FOR A TERM TO EXPIRE ON NOVEMBER 30, 2017, TO BE APPOINTED BY ACTION OF THE CASTROVILLE COMMUNITY SERVICES DISTRICT AND SUBJECT TO APPROVAL OF THE MRWPCA BOARD OF DIRECTORS Deb Mall, Assistant Legal Counsel, stated that this item is to recommend to the Board to consider adding an ex-officio seat on the Board for one person residing in the territory comprising the jurisdiction of the former Moss Landing County Sanitation District for a term to expire on November 30, 2017. She noted that this end date will provide Moss Landing residents an opportunity to run for the Castroville Community Services District (CCSD) Board in the next year’s election, thereby providing the possibility that the consolidated CCSD will include board member(s) residing in what were the jurisdictional limits of the former MLCSD. Chair Moore asked if Member Stefani should recuse himself from voting on this matter since it involved Castroville Community Services District. Ms. Mall stated that there was no reason she could think of that would require Member Stefani to recuse himself as there was no financial advantage to him on this matter.

ACTION TAKEN: It was moved by Member De La Rosa, seconded by Member Allion, to recommend that the Board of Directors approve a resolution to put in place the term-limited, ex-officio Board representation described immediately above, and carried by the following vote:

Ayes: Moore, De La Rosa, Allion

Noes: None

Absent: None

Abstain: Stefani

9. STAFF REPORTS Mr. Hogg thanked and congratulated Ms. Hannah and her staff on the completion of

the FY 2016/17 budget. Mr. Hogg provided an update on the recent employment recruitments.

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Minutes DRAFT


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10. COMMITTEE MEMBER COMMENTS/REPORTS (None)

11. ADJOURNMENT At 12:54 pm, with no further business, Chair Moore adjourned the Budget/Personnel

Committee meeting to the next regularly scheduled Budget/Personnel Committee meeting on Friday, August 12, 2016 at 12:30 pm.

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AUGUST 12, 2016

INFORMATIONAL ITEM

BUDGET AMENDMENT AND RESERVE UPDATE

From: Tori Hannah, Chief Financial Officer

Approval: GM Legal CFO

──────────────────────────────────────────────────────

Budget Amendments The Agency’s Budget Amendment Policy allows staff to approve transfers between line items and projects when a transfer is below $35,000. The chart below represents budget amendments that were approved during the month of July. The budget adjustments listed below were accrued back to FY 15/16.

July Budget Adjustments Transfers Under $35,000

Transferred funds from the Consultant account to the Demonstration Facility account $21,290

to complete the Ozone Ventilation Project

Transferred funds from the Electricity account to the Equipment Repair account to purchase $18,000

new Filter Actuators. The new actuators will reduce the amount of labor required.

Fiscal Impact:

This item is informational only. All administrative adjustments reflect transfers between budgeted line items in the approved FY 15/16 Budget. Reserves The Agency is in the process of closing the Fiscal Year 15/16 accounting records. The preliminary combined reserve balance for June 30, 2016 is estimated to be $2,547,000. While most accruals have been completed, there are still some year-end transactions and reconciliations pending. Stronger numbers will be available in September.

Information only – no action needed.

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AGENDA ITEM 5





August 12, 2016

INFORMATION ITEM

UPDATE ON ZERO WASTE ENERGY (ZWE) ANAEROBIC DIGESTER & PG&E

CONTRACTS

From: Stephen Hogg Assistant General Manager


──────────────────────────────────────────────────────

Background: In 2012 Zero Waste Energy (ZWE), under contract with the Monterey Regional Waste Management District (MRWMD), began construction of a 100 kilowatt biogas generation facility as a pilot test to utilize food waste for the production of green energy. The ZWE generator was connected to provide the power generated to the Biofloc facility at the Monterey Regional Water Pollution Control Agency (MRWPCA) Regional Treatment Plant (RPT) and began providing electrical energy to the RTP April 2013. PG&E was initially involved in the concept of this generation facility and provided a supplemental review and pre-parallel inspection; however neither ZWE or MRWPCA ever entered into an interconnection agreement as required to connect any type of electrical generation to the electrical utility’s power grid. MRWPCA staff appears to have not finalized PG&E’s requirements once the Supplemental Review was complete and PG&E closed out the file in July 2013 due to lack of activity. MRWPCA has a power purchase agreement (PPA) dating back to 1984 with PG&E for the purchase of power generated by the Agency’s three digester/natural gas fueled generators that is in excess of the power demand of the RTP. This power purchase agreement was specific to only the three co-generation engines owned and operated by the MRWPCA. This also allows the MRWPCA to receive renewable energy credits for a portion of the energy generated on site using biogas. In December of 2014, the Western Renewable Energy Generation Information System (WREGIS), the organization tasked with monitoring the banking of renewable energy credits, noted that PG&E was reporting nearly three times the amount of electrical power being exported from the RTP as was considered normal. It was later determined this discrepancy was

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AGENDA ITEM 6

Budget/Personnel Committee August 12, 2016 P a g e 2

the result of a malfunctioning meter. As a result of this discovery, PG&E repaired the meter and performed a follow-up site inspection and verification July 2015. During the site inspection, PG&E noted the connection of the ZWE generation facility to the RTP electrical system. On December 23, 2015, the Agency received a letter from PG&E stating the connection of the ZWE generator was in violation of the power purchase agreement and that the disconnect switch for the generator was to be opened the following business day and more permanent method of disconnecting the facility by December 31, 2015. In an effort to meet PG&E’s requirements, MRWPCA staff opened the generator breaker at the ZWE facility and locked out the breaker with an Agency lock on December 28, 2015. PG&E came on site January 12, 2016 to inspect what was done to determine if it met their requirements. Where We Are Now On February 25, 2016 a follow-up meeting was held with representatives from MRWPCA, MRWMD, ZWE and two different groups from PG&E to determine how to move forward. Since that meeting there have been two separate tracks of follow up with the two different PG&E groups. ZWE and MRWMD have submitted an application for a direct permanent connection to the electrical grid that would not go through MRWPCA. That permanent connection is anticipated to be 9-12 months from approval. In the meantime, the temporary reconnection to MRWPCA has been approved by the Interconnection Group, pending Contract approval by the Contracts Group. MRWMD, ZWE, and MRWPCA staff have all worked hard to get that approval to fruition. Separately, MRWPCA staff has been working with the Contracts Group to come up with a mutually agreeable resolution to PPA contract changes necessary to allow the temporary reconnection of the generator. In order to reconnect, MRWPCA must complete an amendment to our original 1984 PPA allowing the temporary reconnection. As part of the PPA Amendment, PG&E and MRWPCA have been working to negotiate a settlement for the renewable energy credits that PG&E has lost since the connection of the ZWE Generator to our facility in 2013. Due to the fact that the generator was considered non-conforming power, since it wasn’t properly certified prior to original connection, PG&E lost between $32,000 and $59,000 in renewable energy credits. They are currently working on calculating a settlement amount which will be included in the PPA contract amendment. We are hoping to have the exact amount by the end of this week. Once we have the settlement amount from PG&E we will verify the amount and come to the Board for approval of the amended contract.

Information only – no action needed

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AUGUST 12, 2016

ACTION ITEM

CONSIDER RECOMMENDING APPROVAL OF A RESOLUTION AUTHORIZING

PURCHASE OF A TOTAL ORGANIC CARBON/TOTAL NITROGEN ANALYZER

WITHOUT FORMAL COMPETITIVE BIDDING From: Patrice Parsons, Laboratory Supervisor


──────────────────────────────────────────────────────

Background:

Staff is recommending the purchase a Total Organic Carbon (TOC)/Total Nitrogen (TN)

Analyzer system to perform a variety of analysis on industrial source control, process

control, and regulatory compliance samples. This unit will replace the existing TOC

Analyzer, which is beyond its expected usable life. In addition, the current unit is not

capable of running TOC for samples with high suspended solids, or low-level TOC or

Total Nitrogen concentration.

With the startup of the Pure Water Monterey Demonstration Facility, 8 additional

samples must be analyzed weekly for TOC for process control and ensure that the

product is safe for consumption. The future regulatory permits for the advanced water

treatment system are likely to include analysis to ensure compliance with TOC limits.

The TOC concentrations in five of the weekly samples currently being run are very low-

level (at or below 0.5 mg/L) and must be sent to a contract laboratory for testing

because the existing instrument is not capable of accurately measuring these low-level

concentrations. Running these samples in-house will save approximately $13,000

annually.

We utilize the current analyzer to test filtered Salinas Industrial samples in order to save

considerable labor when setting these samples up for weekly BOD testing. Lab staff

also tests filtered RTP samples for process control, and will begin a study to evaluate

the option of replacing our NPDES CBOD requirement with a TOC limit. Many WWTPs

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AGENDA ITEM 7

BUDGET/PERSONNEL COMMITTEE AUGUST 12, 2016

in our region have done this, as it is a much more reliable method with results available

within a few hours, compared to CBOD which requires 5 days of incubation. This would

allow us to correct issues in the plant before they become a violation. This will also

require a reliable TOC analyzer.

Lastly, the new unit will have a Total Nitrogen module which can be used in place of our

Total Kjeldahl Nitrogen (TKN) method for testing samples for Pure Water Monterey

(weekly), SVRP (monthly), Salinas Pond Contract (monthly), and the RTP (special

studies as requested). Eliminating the TKN method from our laboratory will significantly

reduce labor and chemical costs. This will also eliminate staff exposure to high

temperature sulfuric acid digestion, increasing overall safety for the laboratory

personnel.

Laboratory staff is recommending replacing the Shimadzu TOC Analyzer with a newer

model Shimadzu TOC/TN system Laboratory. The Laboratory staff already has an

excellent working knowledge of the existing Shimadzu TOC system. A change in

manufacturer would require additional staff training. Many of the consumables currently

in stock can be used with this particular new system. Shimadzu is a well-established

manufacturer of TOC/TN products with an excellent record of customer service provided

to our staff, allowing unlimited phone and email assistance at no additional charge. In

addition, by upgrading an existing Shimadzu TOC Analyzer and by purchasing another

system from Shimadzu, the Agency can take advantage of a significant trade-in

discount. Since Shimadzu sells direct and does not utilize vendor representatives, there

is only one source for this product. The purchase of this system without formal

competitive bid will be in the best interests of the Agency and the public in light of the

considerable savings involved in the installation, training, operation and maintenance of

the new system.

FISCAL IMPACT: The cost of the new TOC/TN system is $60,602.08. Shimadzu will provide a discount of $11,060.10 to trade-in our existing Shimadzu system. This will reduce the total cost to $49,542.00. This system is budgeted as Capital Equipment item 1704 in the amount of $60,500. RECOMMENDATION: That the Budget and Personnel Committee recommend that the Board approve a resolution authorizing the purchase of a Shimadzu Total Organic Carbon (TOC)/Total Nitrogen (TN) Analyzer system for the Laboratory without formal competitive bid.

ATTACHMENT: 1. MRWPCA Resolution 2016-XX, Authorizing Sole Source Purchase

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RESOLUTION NO. 2016-XX A RESOLUTION AUTHORIZING PURCHASE OF A TOTAL

ORGANIC CARBON/TOTAL NITROGEN ANALYZER WITHOUT FORMAL COMPETITIVE BIDDING

UNDER EXCEPTION TO PURCHASING RESOLUTION NO. 87-19

WHEREAS, the Agency’s approved FY 16-17 Capital Equipment budget

for Department 25 Environmental Services budget includes the purchase of a Total Organic Carbon/Total Nitrogen Analyzer (TOC/TN) system for the Laboratory;

WHEREAS, the Agency has determined that it is most cost effective and

in the public’s best interest to purchase a like manufacture that is currently in use to replace the existing TOC system; WHEREAS, Agency Resolution No. 87-19 provides an exception to that

Resolution’s requirement for solicitation of bids for certain purchases by allowing purchases by other means when the Board of Directors finds and determines that such purchases are in the public interest; and

WHEREAS, the Board has received and reviewed staff reports and

verbal testimony discussing the advantages of procuring said TOC/TN Analyzer system without competitive bidding. Specifically, the purchase of like manufacture allows for considerable savings for the installation, training, operation and maintenance of the new system; and WHEREAS, the Board has received and reviewed staff reports and

verbal testimony that purchase of the Shimadzu TOC/TN Analyzer system without competitive bidding and pursuant to a negotiated purchase is hereby found and determined to be in the public interest;

NOW, THEREFORE BE IT RESOLVED by the Board of Directors

of the Monterey Regional Water Pollution Control Agency, as follows:

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Attachment 1 Page 1 of 2

1. That procurement of said TOC/TN Analyzer system through formal competitive bidding would be unavailing, would not produce an advantage and would, therefore, not be in the public interest. 2. That the General Manager is authorized and directed to procure the above-described DC Drives at a price not to exceed $49,542.00, including tax and shipping, pursuant to the exemption provisions of Paragraph 4 of Resolution No. 87-19, as described in the attached Agenda Transmittal.

PASSED, APPROVED AND ADOPTED by the Board of Directors

of the Monterey Regional Water Pollution Control Agency at a regular meeting duly held on July 25, 2016 by the following vote: AYES: NOES: ABSENT:

Gloria De La Rosa, Chair MRWPCA Board of Directors

ATTEST:

Paul A. Sciuto, General Manager Secretary to Board of Directors

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AUGUST 12, 2016

ACTION ITEM

CONSIDER RECOMMENDING PAYMENT OPTIONS FOR PACIFIC GROVE

CAPACITY FEES

From: Tori Hannah, Chief Financial Officer


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Background: Capacity fees are assessed on a one-time basis when a customer wishes to connect to

the Agency’s wastewater system. These fees are used to pay for capital improvements

associated with MRWPCA’s interceptor pipelines; and treatment and disposal facilities.

In May 2004, the City of Pacific Grove began diverting Stormwater to the Agency

through the Greenwood and Fountain Pump Stations. At the time of connection,

capacity fees were not collected. Both the City and the Agency agreed to defer the

costs until sufficient usage data was gathered. In 2007, the Agency billed the City

$290,613 for capacity charges based on three years of flow data. While all monthly

user fees are current, the capacity fees are still outstanding.

There have been several discussions over the last several years regarding the

outstanding balance, with the most recent Board presentation taking place in July of

2012; and correspondence between the Agency and City Attorneys in October 2012.

Due to staffing transitions within both organizations, Agency staff met with the new City

Manager to review the charges and assess their validity. After much discussion and

research, both entities agreed that the capacity fees were still due to MRWPCA. The

City is requesting that the Agency consider some payment alternatives based on their

current fiscal constraints. While it would be inappropriate to waive the fees, staff and

the City have identified some options, which could be beneficial to both organizations.

Some of the potential alternatives listed below could be considered independently or

combined to assist with payment options:

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AGENDA ITEM 8

Budget/Personnel Committee August 12, 2016 P a g e 2

Establish a three-year payment plan

Accept land, an easement, or a land lease as partial or full consideration for

outstanding capacity fees. If considered as a partial payment, a 3-year payment

plan for the remainder of the capacity fees could be recommended. To ensure

an even exchange, all land values would be determined by an independent

licensed appraiser. It is estimated that appraisal costs for two vacant lots would

not exceed $10,000. Additional costs could be incurred to appraise land with

existing structures.

Park Land across from the Coral Street Pump Station This land could be used to build a small facility that houses the Agency’s electrical equipment and generator. This would allow the Agency to keep the Coral Street Station operational during major storm events by protecting the equipment from high tides and related flooding. This option was previously considered by the City; however the community was not receptive to this project. It is estimated that the project costs to move the equipment and build this facility would be between $1.5 and 2 Million.

Land or Easement Adjacent to Station 13

Station 13 is currently situated on Agency property; however additional

land may be required to accommodate an underground bio odor scrubber.

This new scrubber would provide a more efficient and effective means of

controlling odor. Preliminary designs, as well as a surveyor are needed to

determine the amount of land required for this project.

Additional Pacific Grove Land

The Agency would like to build a structure large enough to park two

trucks, and two pumps or generators; and a small supply room/office.

This structure would be similar to a four-car garage, with potential space

for one Lift Station Mechanic. This new site would allow the Agency to

respond more quickly to emergencies and assist in preventing spills in the

Pacific Grove and Monterey areas. It is estimated the cost of the structure

would be approximately $40,000.

Fiscal Impact: The Agency would receive payment or consideration for outstanding fees. RECOMMENDATION: That the Budget and Personnel Committee recommend the Board to consider alternatives identified at the Budget and Personnel Committee Meeting.

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BUDGET PERSONNEL COMMITTEE

August 12, 2016

ACTION ITEM

CONSIDER RECOMMENDING APPROVAL OF A BUDGET AMENDMENT TO FORMALIZE PAYING FOR THE ADVANCED WATER TREATMENT FACILITY

(AWTF) DESIGN FROM: Bob Holden Principal Engineer

Approval: GM Legal CFO ───────────────────────────────────────────────────── BACKGROUND The Board approved a $1,325,725 contract with Kennedy/Jenks Consultants Inc. (K/J) on December 14, 2015, for 30% design of the Advanced Water Treatment Facility (AWTF). That work was substantially complete by the end of April 2016. The Board approved another contract with K/J on July 25, 2016 for Phases 2 through 4. Phase 2 is for 60% AWTF design at a cost of $1,197,272. This is the only phase authorized to proceed. Phase 3 is for 100% AWTF design, costs $961,997, and will only proceed after authorized by the Board. Phase 4 is preparation of the AWTF final contract documents and bidding support, costs $175,262, and would need to be authorized by the Board (probably in conjunction with Phase 3). When the Board approved Phase 2 of the K/J contract they were told that the funds would come from a combination of reserves: and/or CIP projects and Pure Water Monterey funds that would not be needed until the second half of the fiscal year. Phase 2 costs of $1,197,272 will be needed November 30, 2016. If the CPUC has not issued the Preliminary Decision, then MPWMD will not pay their share and the entire cost would be on MRWPCA. If the Preliminary Decision is issued, then MRWPCA would be liable for $299,318 (25%). FISCAL IMPACT The Agency has determined that funds are available from projects or phases of projects that are not anticipated to begin until the first part of the calendar year. This will allow the Agency to maintain reserve levels that are near or just below the Board’s Policy Level. All defunded projects are anticipated to receive funding upon reimbursement from the Monterey Peninsula Water Management District and/or the State Revolving

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AGENDA ITEM 9

Budget Personnel Committee August 12, 2016

Loan Fund. If these alternate forms of funding are not available at the beginning of the calendar year, these projects would be deferred or staff would request the Board to review alternative funding options. RECOMMENDATION: That the Budget Personnel Committee recommends the Board approve the attached budget amendment transferring funds from capital projects that aren’t anticipated to begin until the first part of the calendar year to pay for GWR design costs. Attachment:

1. Budget Amendment

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Date 8/9/2016

Requesting Department Administration / GWR / Engineering

Administrative Board X Item #

Board Date 8/29/2016Board Approval

Account Description Increase/Decrease

Total -

Account Description Increase/Decrease

Station 13 Valve Replacement (250,000)

Monterey Pump Station Drives (250,000)

CP 299 - Complete Project Trickling Filter (350,000)

CP 300 - Phase II Pump Station & Conveyance (350,000)

58-058-6233-05 Design 1,200,000

-

Net Impact -

Purpose: Fund GWR design costs with project costs that aren't anticipated to start until the beginning of the calendar year. It is anticipated that the funds will be re-allocated to the original projects once the Agencyreceives reimbursements from either the MPWMD or the SRF Loan.

Asst. General Manager Approval

Finance Department Approval

General Manager Approval

Total

MRWPCA Budget Adjustment Form

Department Head Approval

Account #

Account #

CP 297 - Construction Portion

Expenditures

Revenues

CP 298

8/9/20162:48 PM GWR_Additional_FundingForm

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AUGUST 12, 2016

ACTION ITEM

CONSIDER RECOMMENDING APPROVING AN AGREEMENT WITH SEASIDE COUNTY SANITATION DISTRICT AND THE CITIES OF MONTEREY, PACIFIC

GROVE, AND SAND CITY TO PROVIDE INSPECTION SERVICES REGARDING FATS, OIL, & GREASE AND STORMWATER

From: Stephen Hogg, Assistant General Manager


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BACKGROUND: The Monterey Regional Water Pollution Control Agency (MRWPCA) was approached by the Seaside County Sanitation District and the Cities of Monterey, Pacific Grove, and Sand City to identify a regional solution to perform Inspection Services for Fats, Oil, and Grease (FOG) Inspections and Stormwater Inspections. This regional approach attempts to take advantage of economies of scale in order to develop a consistent and cost effective approach to meet requirements under each of the entities’ respective Grease Source Control programs and Stormwater Permit programs. The MRWPCA has been performing FOG Inspection Services on behalf of the Cities of Pacific Grove and Salinas, utilizing members of the Agency’s Source Control Division. The proposed Memorandum of Agreement (MOA) will continue the efforts for the City of Pacific Grove while adding additional members to the Agreement and introducing Stormwater Inspections to the contract. The City of Salinas will continue to be served under its existing Agreement. Under the terms of the Agreement, MRWPCA Staff will be authorized to perform Inspection Services on behalf of member entities, completing a standard checklist of inspection items as agreed to by all parties, meeting respective program requirements. MRWPCA Staff will then report findings to member entities, which are solely responsible for any follow-up enforcement measures.

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AGENDA ITEM 10

Recycled Water Committee March 17, 2016 Page 2

It is projected that an additional 900 hours of staffing time annually will be needed to fulfill the additional contracts. Staff estimates that these inspections can be handled without the need of additional Source Control Inspectors as, currently; one Source Control Inspector is providing assistance to the Laboratory on a part-time basis. Those Laboratory tasks will be re-distributed among Laboratory Staff. FISCAL IMPACT: Approval of this agreement is anticipated to result in over $95,000 of additional revenues. If additional personnel are needed, staff will request an amendment to the budget. ALTERNATIVES: The alternative would be for the Board to not approve the agreement. Party entities would then need to develop a solution in-house or through independent consultants. The attached agreement is a draft version. Staff from MRWPCA and partner entities are continuing to work together to reach consensus on all the terms of an agreement Staff is planning to provide the Board with a near final version of the agreement in the August 29 Board packet for adoption with non-substantial changes and authorize the General Manager to sign. RECOMMENDATION That the Budget and Personnel Committee recommend that the Board approve the Agreement to provide Inspection Services regarding Fats, Oil, and Grease and Stormwater, and authorize the General Manager to complete negotiations with partner agencies and sign the agreement to include any non-substantial changes. ATTACHMENTS: 1. Draft Memorandum of Agreement

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MEMORANDUM OF AGREEMENT

INSPECTION SERVICES PROGRAM

THIS Memorandum of Agreement (“AGREEMENT”), is made and entered into this

____________________ day of _________________, 2016, by and between the MONTEREY

REGIONAL WATER POLLUTION CONTROL AGENCY, hereinafter referred to as

“AGENCY” or “MRWPCA,” a Joint Powers Authority (JPA) organized under the laws of the

State of California, and the following public entities, each of which is hereinafter referred to as

“ENTITY” or collectively as “ENTITIES”:

CITY OF PACIFIC GROVE, a municipal corporation of the State of California;

CITY OF MONTEREY, a municipal corporation of the State of California;

CITY OF SAND CITY, a municipal corporation of the State of California;

SEASIDE COUNTY SANITATION DISTRICT, a county sanitation district of the State of

California.

The AGENCY and the above-mentioned entities may also hereinafter be collectively referred to

as "PARTIES" or individually as "PARTY," to form a Memorandum of Agreement for

Inspection Services Program (“PROGRAM”).

RECITALS:

1. The ENTITIES have a requirement for assistance in implementing a grease source control

program.

2. The ENTITIES have a requirement for assistance in implementing inspections in support of

their respective stormwater programs.

3. The AGENCY has the requisite skill, training and experience to properly perform the services

specified herein.

4. The ENTITIES desire to retain MRWPCA to provide the services as herein set forth.

NOW, THEREFORE, THE PARTIES HERETO FURTHER AGREE, AS FOLLOWS:

1. Scope of Services. MRWPCA shall provide services as described in the Scope of Services,

attached as Exhibit “A” hereto.

2. Commencement of Services. MRWPCA will commence work on the services to be provided

hereunder as soon as practicable upon execution of this AGREEMENT by the PARTIES hereto.

3. Term. This Agreement will take effect upon it being executed by the PARTIES. This

AGREEMENT may be terminated at any time by any party upon giving 90 days’ prior written

notice to the other party. Once executed, this AGREEMENT may be extended to new members

following mutual written agreement of MRWPCA and notification to the ENTITIES hereto.

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4. Compensation. For the services to be performed under this AGREEMENT, the ENTITIES

shall compensate MRWPCA for the actual number of hours spent by MRWPCA staff on that

ENTITY’s program, at the hourly rates as described in the Time and Cost Estimate (hourly rates

subject to MRWPCA’s current billable wage which consists of salary, benefits, and related

administrative overhead rate, determined annually based on the MRWPCA Cost Allocation

Plan), attached as Exhibits “B-1,” “B-2,” “B-3,” & “B-4” hereto. Compensation shall be paid

quarterly by the ENTITIES upon receipt of a written statement of charges from MRWPCA.

5. Transportation and Equipment. MRWPCA shall, at its cost and expense, provide all

transportation and equipment required for the performance of the services under this Agreement.

6. Hold Harmless. Each ENTITY agrees to indemnify, defend and hold MRWPCA, its agents,

officers, harmless from and against any and all costs, expenses or liability incurred as a result of

any claim, suit, lien or other legal proceeding resulting from each ENTITIES’ negligent

performance or willful misconduct in the performance of this AGREEMENT. Provided,

however, that MRWPCA shall not be reimbursed for worker’s compensation costs attributed to

injuries or death arising out of each ENTITIES’ performances hereunder.

MRWPCA agrees to indemnify, defend and hold each of the ENTITIES, their agents, officers,

harmless from and against any and all costs, expenses, or liability incurred as a result of any

claim, suit, lien or other legal proceeding resulting from MRWPCA’s performance or

misconduct in the performance of this Agreement. Provided, however, that each of the

ENTITIES shall not be reimbursed for worker’s compensation costs attributed to injuries or

death arising out of MRWPCA’s performances hereunder.

With respect to costs, expenses or liability by or with respect to third parties which arise from the

joint or concurrent performance of the ENTITIES and MRWPCA, each party shall assume full

responsibility in proportion to the degree of its respective fault.

Each Party shall have rights to any immunities it is entitled to. In no event shall any duties

contained in this Agreement, negate any legal protections or immunities available to the Parties

under local, state or federal law.

7. Skill of Employees. MRWPCA shall ensure that any employees or agents providing services

under this Agreement possess the requisite skill, training and experience to properly perform

such services.

8. Workers’ Compensation Insurance. MRWPCA shall, at its cost and expense, at all times

during the performance of services under this Agreement, maintain in force and effect workers’

compensation insurance on any and all of its employees working pursuant to this Agreement in

an amount not less than the statutory required minimum.

9. Independent Contractor. The parties agree that MRWPCA shall be an independent contractor

with regard to the providing of services under this Agreement, and that MRWPCA’s employees

or agents shall not be considered to be employees or agents of the ENTITY for any purpose and

will not be entitled to any of the benefits City provides for its employees.

10. Compliance With Laws. MRWPCA, its employees, agents and sub-contractors shall comply

with all applicable state, federal and local safety regulations while performing services pursuant

to this AGREEMENT.

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11. Dispute Resolution.

a) Dispute resolution procedure. If any dispute arises between the parties as to proper

interpretation or application of this Agreement, the parties shall first seek to resolve the dispute

in accordance with this Agreement. If a dispute concerns any amounts to be paid to MRWPCA

by ENTITY, then ENTITY shall pay the amount demanded on time, under protest,

notwithstanding that ENTITY has commenced or proposes to commence the dispute resolution

procedures specified herein. The pendency of a dispute shall not excuse MRWPCA from full

and timely performance in accordance with the terms of this agreement.

b) Duty to meet and confer. If any dispute under this Agreement arises the PARTIES

shall first meet and confer in a good faith attempt to resolve the matter between themselves.

Each PARTY shall make all reasonable efforts to provide to the other party all the information

that the party has in its possession that is relevant to the dispute, so that both parties will have

ample information with which to reach a decision.

12. Entire Agreement. This Agreement contains the entire agreement of the parties with respect

to the matters covered by this Agreement, and no other agreement, statement or promise made by

or to any party or by or to any employee, officer or agent of any party, which is not contained in

this Agreement shall be binding or valid.

13. Interpretation. This Agreement has been negotiated by and between the representatives of

both parties. Accordingly, any rule of law (including Civil Code §1654) or legal decision that

would require interpretation of any ambiguities in this Agreement against the party that has

drafted it is not applicable and is waived. The provisions of this Agreement shall be interpreted

in a reasonable manner to affect the purpose of the parties and this Agreement.

14. Modification. This Agreement is not subject to amendment or modification except by a

writing signed by the parties hereto.

15. Attorney’s Fees. In the event of any controversy, claim or dispute relating to this Agreement,

or the breach thereof, the prevailing party shall be entitled to recover from the losing party

reasonable expenses, attorney's fees and costs.

16. Insurance. Each party shall maintain in effect, at its own cost and expense, the following

insurance coverage provided either through a bona fide program of self-insurance, commercial

insurance policies, or any combination thereof as follows:

a) Public Liability with minimum limits of $2,000,000 per occurrence and $4,000,000 in

the aggregate.

b) Auto Liability including owned, leased, non-owned, and hired automobiles, with a

combined single limit of not less than $2,000,000 per occurrence and $2,000,000 in

the aggregate.

c) If a party employs others in the performance of this Agreement, that party shall

maintain Workers’ Compensation in accordance with California Labor Code section

3700 with a minimum of $1,000,000 per occurrence

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IN WITNESS WHEREOF, the PARTIES hereto have executed this AGREEMENT as of the

dates shown below

MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY, a Joint Powers

Authority and public agency of the State of California

Date: APPROVED AS TO FORM:

By: By:

Chair, Board of Directors Legal Counsel

By: ATTEST:

General Manager

Date:

By:

CITY OF _____________, a public entity of the State of California

Date: APPROVED AS TO FORM:

By: By:

Name, Mayor Legal Counsel

By: ATTEST:

Name, City Manager

Date:

By:

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SEASIDE COUNTY SANITATION DISTRICT, a county sanitation district

By: APPROVED AS TO FORM:

___________________________________

___________________________________

Ralph Rubio, Chair Jesse Avila, District Attorney

Date: ___________________________

ATTEST:

___________________________________

Lesley Milton-Rerig, District Clerk

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EXHIBIT A

SCOPE OF SERVICES

REGIONAL INSPECTION SERVICES PROGRAM:

GREASE SOURCE AND STORM WATER CONTROL

Inspection Services

Prepare/Distribute notification letters

Miscellaneous program management and administration

Inspections

Complete Grease Inspections and Storm Water Inspections for food-service and business

facilities, including possible additional inspections during the rainy season for those

facilities that lie within the Areas of Special Biological Significance (See Tables 1-a, 1-b,

1-c, 1-d, to be provided by each jurisdiction)

Identify for the City what equipment (if any) is installed, determine if current equipment

is up to code and/or City standards, and size facility for correct equipment (if necessary)

Fill out restaurant inspection forms and distribute hand-out materials

Check maintenance log sheets

Answer program questions

Compliance Re-Inspections

Conduct inspection to ensure proper installation of equipment

Draft letters for the City which identify additional requirements or corrective actions as

required

City Compliance Issues

Notify City of any compliance issues that are developing or occurring

If requested, provide input to City Personnel on appropriate compliance action to take

Draft any violation letters for the City that become necessary

Attend any non-compliance/show-cause meetings between business owners and the City,

in an information capacity at the City’s request

Attend and testify at court hearings, if necessary, to facilitate business

owner compliance

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MRWPCA (Contractor) Hourly Rate

Total Program

Hours Total

Item 1 - Grease Program Inspection Cycle (318)

Source Control Supervisor 112.92$ 24 2,710.08$

Source Control Inspector 87.68$ 318 27,882.24$

Item 2 - Storm Water Program Inspection Cycle (318)



Item 3 - Compliance Issues / Meetings



Item 4 - Quarterly Billings

Customer Service Supervisor 101.86$ 8 814.88$

Sub-Total67,313.44$

Overhead @ 15%10,097.02$

Total77,410.46$

Notes:

Hours based on 318 Grease Inspections and 318 Storm Water Inspections conducted (one inspection of each type at each of the 318 facilities)

Salaries based on current salary schedule for FY 15/16

Exhibit B - 1

City of Monterey

Food Prep Grease / Storm Water Inspection Program

Time & Cost Estimate -2 Year Program

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Total Program

Hours Total


Source Control Supervisor 112.92$ 8 903.36$










Sub-Total40,640.16$

Overhead @ 15%6,096.02$

Total46,736.18$

Notes:

Hours based on 130 Grease Inspections and 130 Storm Water Inspections conducted during this cycle.

ASBS Businesses (43 of the 130) require two Stormwater Inspections per rainy season per the Special Protections

Salaries based on previous salary schedule for FY 15/16.

Exhibit B - 2

City of Pacific Grove



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Total Program

Hours Total


Source Control Supervisor 112.92$ 0 -$

Source Control Inspector 87.68$ 0 -$









Sub-Total21,560.48$

Overhead @ 15%3,234.07$

Total24,794.55$

Notes:

Hours based on no Grease Inspections and 100 Storm Water Inspections conducted during this cycle.


Exhibit B - 3

City of Sand City



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Total Program

Hours Total





Source Control Supervisor 112.92$ 0 -$

Source Control Inspector 87.68$ 0 -$






Sub-Total38,097.44$

Overhead @ 15%5,714.62$

Total43,812.06$

Notes:

Hours based on 178 Grease Inspections and No Storm Water Inspections conducted during this cycle.


Exhibit B - 4

Seaside County Sanitation District



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