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HomeMy WebLinkAboutMN-SJC-2019-08-21MN-SJC-2019-08-21.doc 1 SJC MEETING August 21, 2019 SJC Members Staff Cynthia Brock, Chair Svante Myrick, Mayor Ray Burger (Dryden Alternate) CJ Kilgore Rich DePaolo Steve Thayer Supervisor Bill Goodman Jose Lozano Laura Lewis Amber Mase Tee-Ann Hunter Scott Gibson Guests Absent Linc Morse; City Harbor Brian Davis David Herrick; TG Miller Dan Lamb (Dryden Alternate) Justin Dixon; Holt Architects Dave Warden Roger Santos; Edgar Enterprises Supervisor Jason Liefer Cella Clarke; WEKG Public Radio Cynthia called the meeting to order at 1:02 p.m. Introductions were made. Quorum was established at 1:04 p.m. Rich MOVED to accept the June 16th minutes. Seconded by Tee-Ann. Approved 5 - 0. Financial Report – Steve Thayer Activity through July 31 Revenues – We have collected $2,246,000.00 of our budgeted revenues to date. Steve said that the Town of Dryden’s third and fourth quarterly payments were been received in August. Septage revenue to date is $142,000.00 - running a little under budget due to timing. Debt Service will be invoiced in November. Expenses – We have expended $2,532,000.00 - most accounts look pretty good. We will be adjusting the 120 salary line for the intern for the remainder of the year. We will continue to monitor treatment supplies and sludge disposal fees - they will need to be increased for the 2020 budget. Health insurance expense is always one month ahead of schedule. We have a deficit of $286,000 but budgeted for a deficit of $250,000.00. Capital Project 414J – Flow Meters – $2,700.00 in design costs. Capital Project 422J – Plant Improvements – no activity. Our overall fund balance at the end of 2018 was $1,859,000.00 We should be at 20% of our current estimated operation activity – we are using this to offset rate increases. We are continuing to reduce our fund balance gradually over the years. Steve will provide fund balance activity as soon as he has approval. MN-SJC-2019-08-21.doc 2 2020 Budget Activity – the draft budget should be presented at the September meeting. Steve is waiting for pension, health insurance and consumption numbers. CSEA Administration contract expires at the end of 2019 – we hope to have a contract in place before the end of the year. Cynthia asked Scott if he thought Erik would have the consumption numbers in place in time for the budget. Scott will follow up with Erik to be sure that they will be available. The results of the financial audit of the City should be available within a month. Operations and Engineering Report – CJ Kilgore 1. Plant Maintenance & Operations a. Monitoring Station Update – Our Emergency Generator needs a new radiator at a cost of $23,600.00. We are currently renting a portable emergency generator for $15,000.00 per month. Although two new generators are part of the next capital project - this is a necessary repair. b. Acti-flow – The Acti-flow phosphorous removal process has been off line for about a month. The mixer needs to be repaired - we are waiting for parts. CJ hopes the repair will be completed within the month. Rich voiced concern about the increased phosphorous being discharged while our system is under repair. (our historical average of 10 pounds per day). CJ assured him that we continue to be in compliance with our SPDES permit limits which are calculated on a 12 month rolling average. 2. Facilities Maintenance & Operations a. Ithaca Beer – is in compliance – CJ considers this closed – we will be receiving a summary report. Ithaca Beer will be self-monitoring. CJ has been receiving weekly reports. Tee-Ann would like to know how often Ithaca Beer is inspected by staff. b. Monitoring Stations – two are online and recording data. There are issues with scaling – CJ is working with the manufacturer to get this resolved. The remaining pump stations will be addressed as quickly as possible - he thinks the first 8 should be fairly easy. Scott added that many of the existing components may be able to be used making the upgrades easier. c. Grit Removal and Misc. Improvements – we are still waiting for DEC approval. GHD will forward their responses addressing the concerns of the DEC today (or tomorrow) to CJ for review. d. SPDES Permit Modification – for ice jam mitigation – the requested engineering plan was submitted about a month ago to the DEC. Scott hopes that the approval for the permanent modification will happen rather quickly. 3. Staff Management – MN-SJC-2019-08-21.doc 3 4. Reporting – 5. Business, Long Term development – 6. Energy Production Statistics – provided by CJ. Cynthia commented that she noticed the waste flare usage has diminished and thanked staff. Presentation/Discussion Items a. Right to IAWWTF Disclosure Ordinance – Cynthia said that those at the PEDC meeting felt that the proposed ordinance would create an undue burden and felt the language was alarming - the sentiment was that we are to find an alternate means of educating residents and owners within the area of the plant. The intent of the Disclosure Ordinance that was submitted in 2017 was to educate users and to provide information to reduce conflicts with site operations. This plant is an integral part of our infrastructure - the need for sewage treatment is integral – upgrades will be necessary - future expansion may be necessary. Sludge drying is being explored. New ways to accept waste are being explored in anticipation of the NYS regulation which will prohibit food scraps from being sent to solid waste disposal facilities. The additional waste (pulp) will be fed into the digesters resulting in increase in biogas production. Cynthia hopes that Svante can offer alternatives or other mechanisms. Svante realizes and understands the concerns of the members. Laura is interested in educating the public as to the benefits of this plant. The ordinance as written will not legally immunize the plant against nuisance complaints. She would like to see the goal clarified. If our goal is to educate the public of the value and the operation of the plant – she feels there are ways to accomplish that without such an ordinance. Possibly have an annual open house – something to emphasize the positive attributes - she does not believe the ordinance addresses the goal. Rich feels that notifying the buyers may actually limit the number of complaints. Tee-Ann feels that it is our responsibility to inform the buyer and is an advocate for some type of disclosure. She asked if we could re-work and re-write the ordinance. Svante said that the ordinance was tabled at the meeting as the votes were not there for it to pass and offered that the ordinance might be re-introduced with softer language. He added that he is interested in protecting the plant politically. Cynthia reiterated that the ordinance will not immunize the plant - the intent is education (awareness) to reduce further conflicts. We are in an industrial area with newly allowed industrial/residential use. Ray added that the nuisances we are talking about are transient in nature - we have a very clean well run facility – disclosure is rational in his mind. Bill sees this as analogous to the requirement under State law for agricultural districts. Rich “Buyer be Aware” - he pointed out that other nuisance complaints are private in nature - we are a jointly owned public facility. He does think that the ordinance could be modified and made much shorter. Laura – this is an industrial area with additional uses (community gardens, farmers market, Aldi). She feels there can be a more clear way of informing the public. MN-SJC-2019-08-21.doc 4 Svante offered that we take a second run at the disclosure ordinance OR work on an educational campaign directed at residents in the vicinity – including letters, open houses, tours (OR both). This will be a mixed use area. Cynthia asked if there is another option or another avenue to educating buyers and renters before they commit – if not a disclosure ordinance – can we require educating potential owners and tenants through site plan review requirement. Could the proximity to the plant and information on possible occasional impacts of the site be required to be shared by the owner – for example in advertising material, promotional material, pre- signing of a lease, pre-sale of the property. Some obligation on the seller to inform. Svante offered to do see if we can build something into the site plan. He will reach out to planning to see if there is another mechanism. He will also research Ag disclosures - how they affect resale and if they further understanding and limit complaints. Three things will be explored – First – modifications to the ordinance Second - Svante will explore some kind of site plan, the inclusion of a letter in advertising or promotional material, or something along that line. Third – improve education and outreach – how we can do more. Svante thanked the members for allowing him to join the meeting today. Voting Items – Introductions were made. a. City Harbor RESOLUTION – Cynthia City Harbor is preparing design drawings for their project and would like direction before moving forward. An outline of what would be included in a Memorandum of Understanding with the plant as to the terms and conditions of the effluent heat/pipe agreement would guide their planning decisions. City staff will install a 4” pipe off of our 4’ main that will be connected to an off-site City Harbor owned pump room that will extract the energy from the plant’s effluent and be diverted back to our effluent pipe. There are some basic assumptions and agreements outlined in the resolution. The SJC needs to set a cost and decide ownership of possible carbon credits. This energy source is presently being discharged to the lake. Any future use of heat extraction by the plant will not be limited or impacted by City Harbor’s planned use. This proposed project will not impact our SPEDES permit with regards to effluent temperature. CJ plans to meet with the DEC and City Harbor to be sure this project will be in compliance. Linc Morse said that City Harbor is comparing the use of effluent heat to an air source system. They are at the crossroads and need to decide for design purposes. As municipal owners we are obligated to demonstrate to our constituents and rate payers that we are managing our resources adequately. It is considered inappropriate to enter into an agreement which gives financial or material benefit to an individual or to an organization without fair compensation. This project utilizes a resource that we generate which is not presently being used - we have explored district heating technology for years. NYSERDA finds this project exciting and have offered to collect data. Cynthia outlined and discussed the options - the members offered their financial thoughts. Once the financial component is finalized the three partners will need to pass local laws identifying the revenue stream. MN-SJC-2019-08-21.doc 5 The majority was for Option #1 with 5% of estimated startup savings and an annual fee based on value of the avoided costs for the thermal load with 2% increase annually. The specific cost details still have to be worked out. Cynthia will provide a copy of the revised resolution to Linc. Linc added that City Harbor plans to market this as an innovative energy program. Bill MOVED to proceed with the Resolution Recommending a Contract between City Harbor, LLC (the “City Harbor”) and the Municipal Owners of the Ithaca Area Wastewater Treatment Facility (the “IAWWTF”) for use of Effluent Source Thermal Energy. Seconded by Rich. All were in favor. Approved 6-0. WHEREAS, the IAWWTF is owned by the City of Ithaca, Town of Ithaca and Town of Dryden (“Municipal Owners”), and WHEREAS, the IAWWTF is located at 525 Third Street, Ithaca, NY and City Harbor is the owner of the property and project located north of the IAWWTF, and WHEREAS, the IAWWTF discharges treated sewage effluent into Cayuga Lake through a discharge pipe which runs through the City Harbor property and for which the IAWWTF has an easement, and WHEREAS, City Harbor would like to redirect a portion of the sewage effluent flowing through the discharge pipe onto its property, for the purposes of running it through a heat extractor which aids in the heating and cooling of the City Harbor project, and then return the sewage effluent to the discharge pipe (the “Project”), and WHEREAS, IAWWTF staff and City engineers support the Municipal Owners’ entry into a contract (the “Contract”) with City Harbor based on the terms and conditions stipulated herein, now therefore be it RESOLVED, that the Special Joint Committee for the IAWWTF recommends that the Municipal Owners enter into a Contract with City Harbor pursuant to the following terms and conditions: Carbon Credits. IAWWTF shall retain all Carbon Credits associated with the Project. Construction and Design. City Harbor shall be responsible for all costs related to the Project including but not limited to IAWWTF staff time, as well as costs related to permits, approvals, professional fees and taxes. All plans associated with the Project shall be submitted to IAWWTF for its review and approval. IAWWTF staff shall have authority to inspect the Project during and after construction. City Harbor agrees to install, at its expense, sheet piling along the easement to protect the effluent discharge pipe from construction, as well as to protect City Harbor buildings during maintenance and pipe replacement. Data Collection. All data collected associated with the Project and City Harbor’s energy use and or efficiencies resulting from the Project shall be shared with the IAWWTF. MN-SJC-2019-08-21.doc 6 Effluent Costs. City Harbor shall be responsible for charges associated with use of IAWWTF effluent as outlined here for the duration of effluent use under the Contract.  Initial start-up fee1  Annual use fee based on calculated energy used by Project with 2% annual increase2 Easements. The parties shall grant cross-easements to each other for their respective activities pursuant to the Contract. Removal and Restoration. Upon Municipal Owners’ request, upon Contract expiration/termination City Harbor shall remove its facilities from the easement and IAWWTF infrastructure and restore the effluent pipe to its preexisting state. Indemnification. City Harbor shall defend, indemnify and hold harmless the IAWWTF against any legal action, liability, claim, expense or loss arising as a result of the Project. Insurance and Bonds. City Harbor shall be responsible for insurance and bonds, including but not limited to general liability and umbrella insurance policies naming Municipal Owners and the Special Joint Committee as additional insureds, and a performance bond. Length of the Agreement. The Agreement shall be for a term of 20 years.3 Upon expiration, the contract shall be renewed in five year increments with three year advance notice of intent to not renew. Permits and Licenses. City Harbor shall comply with all permit requirements as well as all laws, rule and regulations. City Harbor shall obtain and furnish the IAWWTF with all evidence of compliance of the agencies and departments having jurisdiction over the Project. The IAWWTF is responsible for the operation and maintenance of its SPDES permit and must be the direct responsible party in charge of any and all correspondence, review, interaction, etc. with the DEC. Project Planning and Completion. City Harbor shall coordinate all activities with the IAWWTF, and the Project shall not impede or interfere with IAWWTF operations. IAWWTF staff shall maintain rights of access and maintenance to all pump systems and Project infrastructure which interfaces with treated effluent. Termination Provision. The IAWWTF is subject to SPDES and other permits, and the IAWWTF reserves the right to terminate the Agreement at any time should a permit, condition or other regulatory agency dictate such action, or if City Harbor breaches the Contract, with advance notice to City Harbor as practicable. David Herrick brought up district heating and shared energy sources. They will keep staff in the loop as to the progression of things. 1 These calculations will be determined in coming months. Initial projection of approximately $5,5 60 approved. 2 These calculations will be determined in coming months. Initial projection of approximately $6.61/MMBTU approved. 3 IAWWTF Attorney Susan Brock will be consulted to confirm the allowed length of the Agreement. Town Law limits agreements to 5 years. MN-SJC-2019-08-21.doc 7 Linc said that Guthrie wants to be considered as part of the “energy district” he will have the science for the City Harbor site but does not have the science for the Guthrie site. Jose added that we are in favor of the concept of district energy. Additional taps are being considered for future expansion. Announcement / Other Business - Cynthia announced that there will be a vacancy on the board – Brain Davis is relocating out of state and will no longer be able to serve on the committee. Jose announced that the twelve billion dollar carbon credit market may be an additional future benefit to the plant. Bill MOVED to adjourn. Seconded by Tee-Ann. All were in favor. Approved 5-0. Meeting was adjourned @ 3:08 p.m. The Next Meeting will be September 18th, 2019, 1:00 pm.