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HomeMy WebLinkAbout04-19-01 AGENDA BACKUP Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 19, 2001 No.: 3. a. CONSENT CALENDAR Type of Action: QUITCLAIM SEWER EASEMENT Subject: ADOPT A RESOLUTION AUTHORIZING EXECUTION AND RECORDING OF A QUITCLAIM DEED TO DISCOVERY BUILDERS, INC. FOR SUBDIVISION 8136 IN THE TOWN OF CLYDE, DISTRICT JOB NO. 1642 Submitted By: Initiating Dept./Div.: Jarred Miyamoto-Mills Engineering/Environmental Services REWEWE:VRECOMMG~1;R BOARO (iiK J. amoto-Mills C. Swanson A. Farrell ISSUE: Board approval is required to quitclaim easements rights. RECOMMENDATION: Authorize a quitclaim of easement rights to Discovery Builders, Inc., for Subdivision 8136 in the Town of Clyde, District Job. No. 1642. FINANCIAL IMPACTS: None. AL TERNATIVES/CONSIDERATIONS: None. BACKGROUND: In February 1969, the Clyde Company, owners at the time of the sanitary sewer system in the Town of Clyde, deeded its sanitary sewer system and easement rights to the District. The deed appears as an exception in title reports for properties in the Town of Clyde. Discovery Builders, Inc. (DBI), a company affiliated with Albert D. Seeno Construction Company, is developing a 12-lot subdivision on Park Street in Clyde. DBI has requested that the District quitclaim its easement rights as those rights affect the 12-lot subdivision and has paid the District's processing fee. Staff has confirmed that there are no easement rights granted by the above-described deed needed for the 12-lot subdivision. The project site is shown on the attached map. Staff has concluded that this transaction is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 18.6, since it involves a minor alteration in land use limitations. Approval of this quitclaim will establish the Board of Director's independent finding that this action is exempt from CEQA. 411 2/01 U :\PPr\SusanW\PPr _ DiscoveryBldrs Clyde. wpd Page 1 of 3 POSITION PAPER Board Meeting Date: April 19, 2001 Subject: ADOPT A RESOLUTION AUTHORIZING EXECUTION AND RECORDING OF A QUITCLAIM DEED TO DISCOVERY BUILDERS, INC. FOR SUBDIVISION 8136 IN THE TOWN OF CLYDE, DISTRICT JOB NO. 1642 RECOMMENDED BOARD ACTION: Adopt a resolution authorizing the President of the Board of Directors and Secretary of the District to execute a Quitclaim Deed to Discovery Builders, Inc. for Subdivision 8136 in the Town of Clyde (District Job No. 1642), and authorize staff to record the Quitclaim Deed with the Contra Costa County Recorder. 4/12/01 U:\PPr\SusanW\PPr _ DiscoveryBldrs Clyde. wpd Page 2 of 3 Central Contra Costa Sanitary District -0 o :IJ -i c: '" .., U 0- '" '" .... ..., ..- . / '" '" .... ..., -;;; >- en "0 <.> ..- .:>: ) lV I o I ..., ..., ~ c; o '" 0:: 9i: a, o PORT CHICAGO HWY LOCATION MAP () I o )> G) o I I '-, I 180 ESSEX '1 ST /75 /76 /72 /69 /70 /72 /64 168 ~-o /65 166 ~$ 162 )> /61 /62 T 25 Z _:IJ ~ 0 /58 ^ -~I ./158 -0 PARK" :0 /54 ~{!! 1/52 )> PLACE$) ~ /5/ r- :0 )> ISO - ^ /54 CT "6~ z -2 146 G) J ~-i /42 ~ /42 /4/ 0 /46 140 Z 142 m ~ /38 /36 /35 \ /34 /36 I /32 /3/' /27~ /28 /30 /28 1tJ[}$3@ /24 /24 ~ /25m (J) l -<:: /20 rn -i \' ~ /2/ 1/8 1/8 117 118 1/4 1/4 113 liD 1/2 /09 I/O /08 ~ I\) ~ ~ i; :<:: I\) /00 )> VI Ul '--- I G) I ~ ~ 200 4~ l SYSSIEx'l FEET PARK STREET,CLVDE (DISCOVERY BUILDERS) ~~ N.r.s.' EASEMENT RIGHTS IN SUBDIVISION 8136 TO BE QUITCLAIMED Attachment MAP BY: DRS DATE: 04-06-01 Page 3 of 3 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 1 9, 2001 No.: 3.b. CONSENT CALENDAR Type of Action: ADOPT RESOLUTION Subject: ADOPT RESOLUTION CONCERNING ENERGY REDUCTION EFFORTS Submitted By: Joyce E. Murphy, Secretary of the District Initiating Dept./Div. : Administrative REVIEWED AND RECOMMENDED FOR BOARD ACTION: ISSUE: District participation is requested in the state-wide effort to address the Ca Ifornia energy crisis, and Board of Directors adoption of a resolution encouraging and promoting energy conservation is also requested. RECOMMENDATION: Adopt the attached resolution concerning energy reduction efforts. FINANCIAL IMPACTS: Energy conservation can reduce District energy usage and help mitigate the impact of energy cost increases being faced by all businesses and residents in the State of California. AL TERNATIVES/CONSIDERATIONS: Decline to participate in state-wide energy reduction efforts. BACKGROUND: California is facing a significant energy challenge. As we move closer to the summer when demand will be at its peak, Governor Davis has asked state agencies, cities, counties, businesses, residents, and independent special districts to embrace energy conservation and efficiency. Because of the number of special districts and the types of services they provide, special districts can have a major impact on the state's ability to meet this challenge and find a long-term solution that will involve stabilization, conservation, and generation. The California Special Districts Association has asked each special district to participate in this effort by adopting a resolution encouraging and promoting energy conservation efforts, by developing and implementing energy conservation strategies, and by working with and sharing information and strategies with other agencies and the public. RECOMMENDED BOARD ACTION: Adopt the attached resolution concerning energy reduction efforts, and authorize staff to forward copies of said resolution to Governor Davis and the California Special Districts Association. 4/12/01 S:\ADMIN\MURPHY\Miscellaneous\energy .pp. wpd Page 1 of 3 CENTRAL CONTRA COSTA SANITARY DISTRICT RESOLUTION NO. 2001- RESOLUTION ENCOURAGING AND PROMOTING ENERGY CONSERVATION AND REDUCTION EFFORTS WHEREAS, California faces unprecedented energy challenges and severe electricity supply shortages; and WHEREAS, the importance of immediate energy conservation efforts cannot be overstated; and WHEREAS, Governor Gray Davis has asked all Californians to reduce electricity use immediately by at least 10 percent and by 20 percent during summer months; and WHEREAS, to demonstrate California's commitment to conserve electricity, State Government is cutting its consumption by at least 8 percent and 20 percent during Stage Two alerts. The Governor has asked independent special districts to do the same; and WHEREAS, Central Contra Costa Sanitary District has already implemented the following projects to conserve energy: . Installation of cogeneration system to produce 90% of plant site power requirements; . Utilization of waste heat from cogeneration and sludge incinerators to drive a 2500 HP aeration air blower, or 40% of the plant's electrical demand; . Use of variable frequency drives on all new equipment as appropriate; . Replacement of all fluorescent lighting at the treatment plant site and headquarters building with new high efficiency lamps and ballasts; . Replacement of old motors with new high efficiency models when appropriate; and . Replacement of outdoor lighting with high efficiency high pressure sodium fixtures. NOW, THEREFORE, BE IT RESOLVED, that Central Contra Costa Sanitary District has taken actions to reduce electricity use by more than 10 percent and will continue long- term efforts to further reduce electricity use particularly during the summer months by: . Modifying cogeneration air intake to produce 200 KW more power in the summer; . Optimizing operation to minimize on peak power demand; and . Maximizing use of landfill gas as an alternate source of energy. Page 2 of 3 BE IT FURTHER RESOLVED, that Central Contra Costa Sanitary District is committed to an ongoing energy conservation and efficiency program and has created an Energy Team to identify efficiency improvements and to emphasize the District's commitment to energy savings; and BE IT FURTHER RESOLVED, that Central Contra Costa Sanitary District urges its residents and businesses to also reduce ongoing electricity use immediately by 10 percent and strive for 20 percent reduction during summer months and peak periods. PASSED AND ADOPTED by the Central Contra Costa Sanitary District Board of Directors this 19th day of April, 2001 by the following vote: AYES: NOES: Absent: Members: Members: Members: President of the Board of Directors of the Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Aim Counsel for the District Page 3 of 3 HEARING TO CONSIDER APPEAL BY PROPERTY OWNERS ON FLORA STREET OF STAFF DECISION REGARDING CAD PROGRAM ELIGIBILITY SUGGESTED AGENDA APRIL 19, 2001 I. Request Staff Report II. Hearing A. State Purpose of Hearing B. Open Hearing C. Receive Comments from Flora Street Property Owners D. Request Staff Responses as Appropriate E. Close Public Hearing III. Board Deliberation U:\CAD\Flora St\hearin-l.wpd ~ ~ ~-- -~ T Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 19, 2001 No.: 4.a. HEARINGS Type of Action: CONSIDER APPEAL Subject: CONSIDER THE APPEAL BY PROPERTY OWNERS ON FLORA STREET IN MARTINEZ OF A STAFF DETERMINATION REGARDING CONTRACTUAL ASSESSMENT DISTRICT PROGRAM ELIGIBILITY Submitted By: Curtis W. Swanson, Division Manager Initiating Dept./Div. : Engineering/Environmental S REVIEW,~ND RECOMME. 'NDED FOR BOARD ACT.. W. N.:. '..'.')._ ~ fP11t. 'E / / . N t:f'J c. Swanson A. F rrell ~~ ISSUE: A group of residents living on Flora Street in Martinez has appealed a taff determination regarding the ineligibility of their properties for participation in the District Contractual Assessment District Program. A hearing is required for the Board to consider an appeal of a staff decision. RECOMMENDATION: Conduct a hearing to consider the appeal by the group of Flora Street property owners. FINANCIAL IMPACTS: If the Board decides that the Flora Street properties are eligible for the CAD Program, the cost of designing and constructing sewer facilities would be approximately $125,000. AL TERNATIVES/CONSIDERATIONS: None. BACKGROUND: In June 2000, a group of three owners of four properties along Flora Street in Martinez applied for participation in the District's Contractual Assessment District Program (see Attachment 1). This group of properties did not comply with the existing criteria for CAD formation. However, the Board of Directors and staff deferred any action related to formation of a CAD for the Flora Street properties until after a thorough review of the CAD Program Policy. The Board conducted a review of the CAD Program Policy and on February 1, 2001, adopted a revised CAD Program Policy. Staff has determined that the Flora Street properties do not specifically meet the previous or current formation criteria for Contractual Assessments Districts. Staff notified the property owners of this determination in a letter dated February 20, 2001 (see Attachment 2). In a letter dated March 5, 2001, and received by the District on March 4/13/01 U:\CAD\Flora St\CAD Flora St Appeal.wpd Page 1 of 12 POSITION PAPER Board Meeting Date: April 1 9, 2001 Subject: CONSIDER THE APPEAL BY PROPERTY OWNERS ON FLORA STREET IN MARTINEZ OF A STAFF DETERMINATION REGARDING CONTRACTUAL ASSESSMENT DISTRICT PROGRAM ELIGIBILITY 12, 2001 (see Attachment 3), the Flora Street property owners appealed to the Board of Directors for reconsideration of the staff determination regarding CAD Program eligibility. In accordance with the District Code and the recently adopted revised CAD Program Policy, a hearing must be scheduled and conducted for the Board to consider the appeal of the staff decision. The hearing must be scheduled within 45 days of receipt of the appeal. Staff reviewed the request by the Flora Street property owners to participate in the District CAD Program. Staff originally determined that the properties are not eligible because they do not meet any of the three CAD criteria. Staff has reviewed the original eligibility determination (Attachment 2) and concluded that the application of the second criterion regarding the percentage of developed properties was too stringent. Three of the four properties on Flora Street are developed which represents a 75 percent development level. Staff's original calculation of a 50 percent development level was based on eliminating the two developed properties with more than two dwelling units. The number of dwelling units on the CAD properties is more appropriately considered in the application of the third CAD criterion. The revised staff eligibility determinations are summarized below: CAD POLICY PROPOSED FLORA STREET CAD 1. A minimum of five properties must Only four properties would be tributary to be directly tributary to the the proposed CAD sewer and two of proposed CAD facilities. those would be ineligible to participate in the CAD (due to Policy #3 below). Criterion not met. 2. A minimum of 60 percent of the Three of the four properties are properties directly tributary to the developed with existing homes served by proposed CAD facilities must have septic tank systems. One property is existing homes served by septic vacant. This would result in a 75 tank systems. percent developed CAD. Criterion met. 4/13/01 U:\CAD\Flora St\CAD Flora St Appeal.wpd Page 2 of 1 2 POSITION PAPER Board Meeting Date: April 19, 2001 Subject: CONSIDER THE APPEAL BY PROPERTY OWNERS ON FLORA STREET IN MARTINEZ OF A STAFF DETERMINATION REGARDING CONTRACTUAL ASSESSMENT DISTRICT PROGRAM ELIGIBILITY 3. A Participant Parcel may not have more than two (2) dwellings to participate in a CAD. The Morris property at 690 Flora Street and the Knisley property at 612-615 Flora Street each contain three dwellings (one single family residence and one duplex). These properties cannot be included within the CAD boundaries. The CAD Policy does provide for the Board of Directors to determine whether to form a CAD on a case-by-case basis. The Board may consider technical, economic, staffing, budgetary, environmental and other factors in its consideration of whether to form a CAD. RECOMMENDED BOARD ACTION: Conduct a hearing to consider the appeal by a group of property owners on Flora Street in Martinez of a staff determination regarding Contractual Assessment District Program eligibility. 4/13/01 U:\CAD\Flora St\CAD Flora St Appeal.wpd Page 3 of 1 2 <: '" "0 .,.; N 6 5! C / 0.. o ~ CI) <: <: o o o -;;; 0.. o E U 0.. '" ~ Central Contra Costa Sanitary District $2 i:i> o 5 o N cl:: ~ :2 T T RTINEZ ~+ " LOCATION MAP NT.S. ~ <:( ~ CO ~ 1 -.J <:( o ST r--r---r--. o I ~ N ~ 160 FEET Attachment FLORA STREET PROPERTIES IN MARTINEZ 1 Page 4 of 12 ATTACHMENT 2 Central Contra Costa Sanitary District FAX: (925) 676-7211 Cl/ARLES lie BATTS G~II<lrQI AIDIIQg.!r KENTON L AU.f COfllJs~/for tI.~ Di.tt,-;ct (9]5) 938.1430 JOrcE E. MURPH!' S'Cr"Df)' oflh. Di'tnct February 20, 2001 Mr. and Mrs. Albert A. Morris 700 Flora Street Martinez, CA 94553 Dear Mr. and Mrs. Morris: PROPOSED CONTRACTUAL ASSESSMENT DISTRICT FOR FLORA STREET, MARTINEZ Central Contra Costa Sanitary District (CCCSD) staff has made a final decision that the proposed contractual assessment district (CAD) for Flora Street in Martinez does not meet CCCSD's CAD formation criteria; therefore, your proposal must be denied. This letter documents the history of this issue, the CAD policy criteria used in this decision, and the procedure for appealing a staff decision. HISTORY In 1997, CCCSD initiated a CAD program for the purpose of assisting homeowners with failing or inadequate septic tank systems to extend the public sewer system to serve their properties. On January 7, 1999, CCCSD's Board of Directors formally adopted a policy for the formation and administration of CADs by Resolution 99-010. The policy included formation criteria pertaining to the minimum required number of benefitting properties (five) and the minimum required percentage of benefitting properties that must have existing homes served by septic tank systems (60 percent). The policy also allows the Board case-by-case basis discretion as to whether to form a CAD, taking into consideration technical, economic, staffing, budgetary, environmental, or other factors. In a letter dated June 20, 2000, you and your neighbors (Knisley and Bray) expressed your willingness to participated in a CAD to provide sewer service to your properties on Flora Street. The letter acknowledged that your request did not meet the District's requirement P:\PUBLlC\LEA VITT\Staff Decision. wpd Page 5 of 12 @ Rt'l';cicd Pap('r Mr. and Mrs. Albert A. Morris Page 2 February 20, 2001 of five benefitting properties and requested that an exception be made for formation of a CAD with just four properties. That letter was presented to CCCSD's Board of Directors at its July 6, 2000. After some discussion, the Board directed staff to prepare a report on your proposed CAD to be brought to the Board at a later date. At the subsequent July 20, 2000 Board of Directors meeting, while considering the formation of two other proposed CADs (one of which also involved a request for an exception to the CAD formation criteria). the Board decided that staff should hold any further CAD requests until the Board could conduct a workshop to consider revising the formation criteria and to discuss exceptions to the policy. On November 30, 2000, the Board CAD Workshop was held and revisions to the CAD program policies were discussed. As a result, at the February 1, 2001 Board of Directors meeting, the Board adopted Resolution No. 2001-008 approving several CAD policy changes. Included in the changes was an additional formation criterion that a participant parcel may not have more than two dwellings to participate in a CAD. Other changes allow owners of multiple properties to participate in the ten-year assessment option with only one property at a time, and provide a specified process for property owners to appeal staff decisions regarding formation and administration of proposed CAD projects. CAD FORMATION POLICIES The proposed Flora Street CAD does not comply with the current CAD formation policies. A comparison of the policies and the characteristics of your proposed CAD is presented in Table 1. PROCESS FOR APPEALING THIS STAFF DETERMINATION According to the CAD policy and the District Code, to appeal this staff decision to the CCCSD Board of Directors, you must file a written notice of appeal or request for Board consideration of staff decision with the Secretary of the District within 30 days of receiving this decision. Her address is: Joyce Murphy, Secretary of the District Central Contra Costa Sanitary District 5019 Imhoff Place, Martinez, CA 94553 P:\PUBLlC\LEA VITT\Staff Decision. wpd Page 6 of 12 Mr. and Mrs. Albert A. Morris Page 3 February 20, 2001 The Secretary of the District will schedule the matter for a hearing before the Board of Directors within 45 day of receipt of your appeal letter and provide you with written notice of the time and place of that hearing at least ten days before the hearing. Each affected party will be given an opportunity to make an oral and/or documentary presentation at the hearing. Any plans or documentation of more than two pages in length which the Board is asked to consider at the hearing must be submitted to the Secretary of the District at least four working days prior to the hearing. Any and all determinations of the Board arising from a request for Board consideration of a staff decision are final and conclusive. If you have any questions about this decision or appeals process, please contact mental Services Division Manager Curtis W. Swanson at (925) 229-7336. CWB/RBLlem c: Mr. and Mrs. A. F. Bray, Jr. 600 Flora Street Martinez, CA 94553 Mr. and Mrs. Dudley Knisley 61 5 Flora Street Martinez, CA 94553 Page 7 of 12 P:\PUBLlC\LEA VITT\Staff Decision.wpd Mr. and Mrs. Albert A. Morris Page 4 February 20, 2001 TABLE 1. COMPARISON OF CAD FORMATION POLICIES TO THE CHARACTERISTICS OF THE PROPOSED FLORA STREET CAD CAD POLICY 1. A minimum of five properties must be directly tributary to the proposed CAD facilities. 2. A minimum of 60 percent of the properties directly tributary to the proposed CAD facilities must have existing homes served by septic tank systems. 3. A Participant Parcel may not have more than two (2) dwelling to participate in a CAD. P:\PUBLlC\lEA VITT\Staff Decision. wpd PROPOSED FLORA STREET CAD Only four properties would be tributary to the proposed CAD sewer and two of those would be ineligible to participate in the CAD (due to Policy #3 below). Criterion not met. Three of the four properties are developed with existing homes served by septic tanks systems. One property is vacant. Since two of the developed properties would be ineligible to participate in the CAD (due to Policy #3 below), only one developed and one undeveloped property would be in the CAD. This would result in a 50 percent developed CAD. Criterion not met. The Morris property at 690 Flora Street and the Knisley property at 612-615 Flora Street each contain three dwellings (one single family residence and one duplex). These properties cannot be included within the CAD boundaries. Page 8 of 12 Mr. and Mrs. Albert A. Morris Page 5 February 20, 2001 be: A. Farrell R. Leavitt C. Swanson P:\PUBLlC\LEA VITT\Staff Decision. wpd Page 9 of 12 ATTACHMENT 3 Mr.lMrs. Dudley Knisley 615 Flora Street Martinez, CA 94553 -co r;" rc::; 0 '0Ji ~--- - - lru ~ i,Q; L5 '(j l5~- MAR '. . - 20(ll Mr.lMrs. A. F. Bray, Jr. 600 Flora Street Martinez, CA 94553 CGGSO ~-:~RETARY OF THE DISTRIC': Mr./Mrs. Albert A. Morris 700 Flora Street Martinez, CA 94553 March 5, 2001 Joyce Murphy, Secretary of the District Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 RE: Contractual Assessment District, Flora Street, Martinez Dear Secretary Murphy: Please consider this document as a Letter of appeal to the Board of Directors, the District staff decision to deny our request to form a Contractual Assessment District (CAD) to provide sewer service to our property on the portion of Flora Street in Martinez east of Alhambra Creek. We recognize that the current District policy, as adopted on February 1,2001, requires District staff to deny formation of a CAD if the properties in a proposed CAD do not meet all the adopted formation policies. The District CAD formation policy also provides for an appeal procedure for proposed CAD's where the properties included do not meet some of the listed criteria but do meet the overall intent of the Sanitary District when the CAD policies were formulated. We hereby request that the Board of Directors grant that the necessary exceptions be made in our case, and that the Board of Directors authorize the formation of a CAD for our properties. District staff denied our original request for three reasons specified in the formation policies. We would like to examine the impact of each one of them and also to discuss other reasons we feel the Board should grant our appeal. The District's intent in creating the CAD policies was to assist homeowners with failing or inadequate septic tank systems to extend the public sewer system to serve their properties. It is an inherent good for properties to be connected to the public sewer. It is good for the properties and good for the community. In the Flora St. case, it also would eliminate a possible future source of pollution to Alhambra Creek. Page 10 of 12 --- ---- T- --- - -- - ____u__________ The Sanitary District also benefits. The District obtains connection fees and additional annual service fees to help defray the costs of providing service to everyone in the district. The District also makes some money on the district's investment, in that all district funds are paid back with interest, at a higher rate than the district makes on their typical other investments. The Flora Street owners certainly benefit, in that a home on the public sewer is always better off than one on a septic system. If the Flora Street situation were just a simple matter of extending the public sewer a couple of hundred feet to serve our homes we would not be making this request. The Flora Street homeowners would have paid the costs and fees and had the work done in accordance with normal Sanitary District policies. Unfortunately, to serve our homes we need to construct an expensive crossing of Alhambra Creek. None of us in the proposed Flora Street CAD have the necessary deep pockets to finance the extension without some assistance. We would hope that that assistance would be available through a secured loan from the Sanitary District through the CAD process if the Board of Directors grants us our appeal. Let us address the three specific policy items that the District staff used to justify denial of our application, and why we think it is appropriate for the Board of Directors to allow exceptions in this case and to grant this appeal: Policy 1. "A minimum of five properties must be directly tributary to the proposed CAD facilities." In the Flora Street case, there are only four properties. While granting our appeal would form a CAD with fewer than five properties, it would not be setting a precedent. The Sanitary District has approved at least one other CAD with as few as three properties with no detriment to the District. By granting this exception no harm would come to the District or to other properties that are served or will be served. Policy 2. "A minimum of 60 percent ofthe properties directly tributary to the proposed CAD facilities must have existing homes served by septic tank systems." If our appeal of Policy 1 and Policy 3 are granted, this policy will be met. Of the four properties in this proposed CAD three, or 75 percent have existing homes served by septic tank systems. Policy 3. "A Participant Parcel may not have more than two (2) dwellings to participate in a CAD." In the Flora Street case, two of the four parcels are developed with three units each, a single family home and a duplex. To grant an exception to Policy 3 would cause no harm while furthering the goals of the total CAD policies, that general policy of geuing older homes off of septic systems. If zoning codes would allow it, those properties with three units would be divided, Page lIof 12 simultaneously making the proposed Flora Street CAD conform to both Policy l, five parcels minimum, and Policy 3, no more that two units to a parcel. There need be little concern over setting a precedent by granting an exception to Policy 3. Probably over 95 percent of other properties in or adjacent to the Central Contra Costa Sanitary District that may be future prospects for CAD's are single-family homes. The remainder is most likely duplexes or single- family homes with in law units. It may be that the Flora Street properties are unique in the District in that there are more than two units on a parcel and they are served by septic tank systems. If there are others they are few. We do know that Contra Costa County and the cities that are served by Central Contra Costa Sanitary District are not allowing new multiple unit buildings to be connected to septic tank systems, so new exceptions are not being created. In summary, the undersigned Flora Street homeowners request that the Board of Directors of the Central Contra Costa Sanitary District grant our appeal, approve the exceptions to the three CAD formation policies above, and approve the formation of the Flora Street Contractual Assessment District. Granting this appeal would do no harm and would advance the Sanitary District and community goals of public health, pollution control and environmental protection. Your consideration of this matter would be most appreciated. Sincerely, a;B J. ~rraine Bra";? ~C)'f'('~ ~"'( ~ DudleYK~~s ~7 /T-~'" // ~ f A::"__ '~~C ( . Jackie Knisley 9'u~~<:~ Albert ~ {/ (/L~ Jerry Anne Morris f~~ 'J/t~ Page 12 of 12 , , 9 , I - , I I , I I , I , , I , f !:f; : <( : f I .0 I o I , , , f , , f I I I , , , , f , , , , f I f I f , I f f I I ... .. I -"'-... 0 ..-..... ~ ~ 1 -J <( , I I f I I I I 0 f ' I f , , I I , : f f , , I f , f I , , , I I I , , I I , I , , I I , I , , , I j I I , I , , , , , , I .8 j '" r '" ~ Central Contra Costa Sanitary District ~ :t ~ t eR f , , I I , o f , f I I , I , "---0- f --.........___ I ----______ : ---.0 f f , , ~-.... ..-. : -.....---. I , I f , I 0-__ , , , , , , , , I I f f , , I MORRIS (UNDfllELOPED) 1-. BERRELL ST "'+ " LOCATION MAP N.T.S. McDONALD 1 DUPLEX (SEWERED) .' .. C/ . . . f . . 0.... (f) .. .... :t. .... ~ , I I I I I I . 0.. FIGUEREDO 3 SFR (UNSEWERED) o I ~ N , LEGEND: 160 .....-... DISTRICT BOUNDARY '.0-- EXIST. SEWER FEET Attachment FLORA STREET PROPERTIES IN MARTINEZ 1 FLORA STREET ISSUES ~ GROUP OF PROPERTIES IS NOT ELIGIBLE FOR CAD PROGRAM ~ PROPOSED GRAVITY SEWER CREEK CROSSING DOES NOT MEET DISTRICT STANDARDS U:\Admin\Swanson\Flora Street\Overheads 2_19_ 01.wpd CAD FORMATION CRITERIA CRITERION FLORA STREET PROPERTIES MORE THAN 5 PROPERTIES 4 PROPERTIES MINIMUM OF 600/0 OF PROPERTIES with HOME & SEPTIC SYSTEM 75% DEVELOPED 1 VACANT 3 DEVELOPED NOT MORE THAN 2 DWELLINGS I PROPERTY 1 with 2 DWELLING UNITS 2 with 3 DWELLING UNITS U:\Admin\Swanson\F1ora Street\Flora St CAD.wpd FLORA STREET J!ROPERTIES ~ PROPERTIES ADJACENT TO ALHAMBRA CREEK ~ ACCESS VIA BRIDGE FROM FLORA STREET ~ HOMES SERVED BY SEPTIC TANKS 40 - 55 YEARS OLD ~ Knisley ~ Bray ~ Morris 2 Systems 1 System 2 Systems ~ PROPERTIES ARE OWNER-OCCUPIED ~ OTHER DWELLING UNITS ARE RENTALS U :\Admin\Swanson\Flora Street\Overheads 2_19_01 .wpd FLORA STREET SEWERING ALTERNATIVES ~ GRAVITY SEWER ACROSS ALHAMBRA CREEK AT B STREET ~ INDIVIDUAL PUMP STATIONS AND FORCE MAINS ACROSS ALHAMBRA CREEK AT FLORA STREET ~ PUMP STATION AND FORCE MAIN ACROSS OR UNDER ALHAMBRA CREEK U :\Admin\Swanson\Flora Street\Overheads 2_1 9_01 . wpd . . I FLORA STREET TECHNICAL CONSIDERATIONS ~ CREEK CROSSING REQUIRED ~ DISTRICT STANDARD IS TO BE ABOVE IOO-YEAR STORM WATER LEVEL ~ PROPOSED GRAVITY CREEK CROSSING WOULD BE BELOW 25- YEAR STORM WATER LEVEL · MORE EXTENSIVE DESIGN. AND CONSTRUCTION · ADDITIONAL MAINTENANCE · ADDITIONAL LIABILITY U :\Admin\Swanson\Flora Street\Overheads 2_19_01 . wpd .. .. nUl FLORA STREET APPEAL BOARD ALTERNATIVES ~ UPHOLD STAFF DECISION ~ REVERSE STAFF DECISION ~ DEFER ACTION U :\Admin\Swanson\F1ora Street\Overheads 2_' 9_0' . wpd ... . OTHER GRAVITY CREEK CROSSINGS IN MARTINEZ ~ SOTO STREET ~ BERTOLA STREET ~ D STREET ~ F STREET ~ J STREET ~ ARREBA STREET (Removed 1991) U :\Admin\Swanson\Flora Street\Overheads 2_1 9_01 . wpd PUBLIC HEARING TO RECEIVE COMMENTS ON VINE HILL WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 99-3 SUGGESTED AGENDA APRIL 19, 2001 I. Request staff report II. Public Hearing A. State Purposes of Public Hearing 1. Announce Tabulation of Ballots 2. Consider Testimony on Resolution of Intention and Engineer's Report B. Open Public Hearing C. Request Staff to Announce Results of Ballots D. Receive Public Comments E. Request Staff Response as Appropriate F. Close Public Hearing III. Board Deliberation Leading to: · Adoption of Three Resolutions · Authorization to Execute an Agreement · Authorization to Allocate Funds U:\CAD\VineHiII Way\hearin-'.wpd Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 19, 2001 No.: 4.b. HEARINGS Type of Action: CONDUCT PUBLIC HEARING; ADOPT RESOLUTIONS; AUTHORIZE AGREEMENT Subject: CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION OVERRULING PROTESTS; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT; AND AUTHORIZE EXECUTION OF AGREEMENT WITH VINE HILL WAY PARCEL OWNERS IN CONJUNCTION WITH THE VINE HILL WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 99-3 Submitted By: Curtis Swanson, Division Manager Initiating Dept ./Div. : Engineering/Environmental Servo s REVIEw,n ND RECOMMENDED FOR BOARD AC.T...l0.N.:. ~'...' fJ ~ ,4} ii,'.,/..'-:;' J t.'/""~.'-'-' .... ~ ( ~ C. Swanson A. Farr II . : R. Ali": ISSUE: A public hearing must be conducted to consider objections and inquiries regar ing the proposed assessment, the Resolution of Intention, the Engineer's Report, annexation, and any other comments regarding Vine Hill Way Contractual Assessment District No. 99- 3 (CAD No. 99-3). RECOMMENDATION: Conduct a public hearing. Adopt resolutions and authorize an agreement to implement Vine Hill Way CAD No. 99-3. FINANCIAL IMPACTS: The estimated total project cost is $105,091. The District will be reimbursed for this project cost over a 10-year assessment period. The District has authorized $1,000,000 for CADs in 2000-01. If approved, the Vine Hill Way CAD will be the fourth CAD funded in 2000-01. If approved, there will be $553,079 available for other CADs. AL TERNA TIVES/CONSIDERA TIONS: 1 . Continue this item to receive additional public comment or allow additional deliberation. 2. Withhold or delay approval of the project. 4/12/01 U:\CAO\VineHiII Way\PubHear.PP.wpd Page 1 of 1 2 POSITION PAPER Board Meeting Date: April 19, 2001 Subject: CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION OVERRULING PROTESTS; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT; AND AUTHORIZE EXECUTION OF AGREEMENT WITH VINE HILL WAY PARCEL OWNERS IN CONJUNCTION WITH THE VINE HILL WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 99-3. BACKGROUND: A group of five parcel owners on Vine Hill Way in Martinez have requested that the District form a contractual assessment district for the purpose of financing and constructing a public sewer system that will benefit their properties. The Vine Hill Way CAD meets all of the criteria for formation of a contractual assessment district. The Board of Directors adopted a Resolution of Intention to form a contractual assessment district on November 4, 1999. The proposed sewer includes approximately 500 linear feet of 8-inch sewer main and one manhole that will serve the proponents' five existing properties, all of which have existing homes presently relying on septic tanks. A map showing the proposed boundary and the proposed sewer location is presented as Attachment A. On November 4, 1999, the Board of Directors adopted a resolution directing the preparation of a report for a Contractual Assessment District known as Vine Hill Way CAD No. 99-3. A report has been prepared, and assessments have been estimated. (The Engineer's Report is bein-g provided to the Board under separate cover.) On March 15, 2001, the Board of Directors set a public hearing for April 19, 2001. Since assessments are proposed to be levied on properties, the procedural requirements of Proposition 218 do apply. Compliance with these requirements has been included in the documents and actions proposed for Board consideration. In order to continue the process for Vine Hill Way CAD No. 99-3 the following actions are necessary: 1 . Conduct a public hearing to: a. announce the tabulation of ballots submitted by owners of each affected parcel indicating approval or opposition to the proposed assessment; b. consider public testimony on the Resolution of Intention and the Engineer's Report; and c. consider public testimony related to annexation of the affected parcels to the District. 4/12/01 U:\CAD\ VineHiII Way\PubHear .PP. wpd Page 2 of 1 2 POSITION PAPER Board Meeting Date: April 19, 2001 Subject: CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION OVERRULING PROTESTS; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT; AND AUTHORIZE EXECUTION OF AGREEMENT WITH VINE HILL WAY PARCEL OWNERS IN CONJUNCTION WITH THE VINE HILL WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 99-3. 2. If, at the close of the hearing, the Board finds that protests and ballot opposition are insufficient, the following resolutions may be considered and adopted: a. Resolution overruling protests of improvement (Exhibit B). b. Resolution confirming compliance with California Constitution, Article XIIID, Section 4 (Exhibit C). c. Resolution approving the Engineer's Report, assessments, and ordering improvement (Exhibit D). The hearing also serves as a public hearing for annexation purposes as required by LAFCO. An agreement between the owners and the District is needed to establish the rights and obligations of both parties. District Counsel has prepared such an agreement in which the owners agree to: · assessments being placed on their property tax bills; · pay the assessments; · accept total responsibility for the design and construction of the sanitary sewer extension; · require the contractor who is selected by the owners to maintain certain insurance coverage; · accept total responsibility for the costs associated with the sanitary sewer extension, including interest for District financing; and · have the sanitary sewer extension constructed in accordance with District standards. The District will: · finance the costs of the sanitary sewer extension; · accept the work of the contractor, provided the work is done in accordance with District standards; 4/12/01 U:\CAD\VineHiII Way\PubHear.PP.wpd Page 3 of 12 POSITION PAPER Board Meeting Date: April 19, 2001 Subject: CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION OVERRULING PROTESTS; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT; AND AUTHORIZE EXECUTION OF AGREEMENT WITH VINE HILL WAY PARCEL OWNERS IN CONJUNCTION WITH THE VINE HILL WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 99-3. · place assessments on owners' tax bills; · record as liens on the participants' properties the obligation of each participant to pay assessments; and · be reimbursed in full by receiving payments, including interest, for the total amount financed from owners over a ten-year period. The agreement has been executed by all five affected parcel owners. It is appropriate, therefore, to authorize the General Manager to execute the agreement on behalf of the District. The estimated cost of the Vine Hill Way CAD No. 99-3 is $105,091. A summary of project costs is shown in Exhibit E. Funding for this CAD is included in the 2000-01 Capital Improvement Budget (CIB) on page CS 62 & 63. The District has authorized $1,000,000 for CAD projects during Fiscal Year 2000-01. If the Board approves the Vine Hill Way CAD 99-3, the District will have committed $446,921 for CAD Projects and there will be $553,079 available for other CADs. Staff has concluded that this project is exempt from the California Environmental Quality Act (CECA) under District CEQA Guidelines, Section 5.2(b)(3), since it can be seen with certainty that there is no possibility that the activity in question may have a significant adverse effect on the environment. This certainty is based on the District's past experience with numerous similar sewer construction projects, the developed nature of the project environment, and the limited service area of the project (no potential for growth inducement). Approval of the Engineer's Report will establish the Board of Directors' independent finding that this project is exempt from CEQA. RECOMMENDED BOARD ACTION: If a majority protest is not filed and if less than a majority of returned ballots from affected parcel owners oppose the assessment, staff recommends that the Board of Directors take the following actions: · Conduct public hearing. · Adopt a resolution overruling protests. 4/12/01 U :\CAD\ VineHill Way\PubHear .PP. wpd Page 4 of 1 2 POSITION PAPER Board Meeting Date: April 19, 2001 Subject: CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION OVERRULING PROTESTS; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT; AND AUTHORIZE EXECUTION OF AGREEMENT WITH VINE HILL WAY PARCEL OWNERS IN CONJUNCTION WITH THE VINE HILL WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 99-3. . Adopt a resolution confirming compliance with California Constitution, Article XIIID, Section 4. . Adopt a resolution approving the Engineer's Report, assessments, and ordering improvement. . Authorize the General Manager to execute an agreement with the Vine Hill Way parcel owners. 4/12/01 U:\CADWineHill Way\PubHear.PP.wpd Page 5 of 12 c: "" -c C >- c ~ :E <l> c: .;; / "'- c E ~ ~ Z ::l c 8 00 W ~ I 8- FEET E V "'- en ~ Central Contra Costa Sanitary District AD ~ N Z EZ ' MAP I PROPOSED CAD AREA EXISTING SEWER PLANNED CAD SEWER * CAD PARTICIPANTS ;:: PROPOSED BOUNDARY OF VINE HILL WAY CAD NO. 99-3 DISTRICT PROJECT NO. 5513 Attachment 5 o N Q:: !It 6 A Page 6 of 12 RESOLUTION NO. EXHIBIT B RESOLUTION OVERRULING PROTESTS VINE HILL WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 99-3 The Board of Directors of the Central Contra Costa Sanitary District resolves: On April 19, 2001, the Board of Directors held a public hearing on the Resolution of Intention and the Engineer's Report on the proposed improvement in Vine Hill Way Contractual Assessment District No. 99-3. At or before the time set for hearing, certain interested persons made or may have made protests or objections to the proposed improvement, the extent of the Contractual Assessment District, or the proposed assessment. The Board hereby overrules each of these protests, written or oral. The Board finds that the protest against the proposed improvement (including all written protests not withdrawn in writing before the conclusion of the protest hearing) is made by the owners of less than one half of the area of the land to be assessed for the improvement. PASSED AND ADOPTED this 19th day of April, 2001, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: NOES: ABSENT: Members: Members: Members: President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secretary, Central Contra Costa Sanitary District, County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Aim, District Counsel Page 7 of 1 2 EXHIBIT C RESOLUTION NO. RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4 VINE HILL WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 99-3 The Board of Directors of the Central Contra Costa Sanitary District resolves: 1. The Board set 2 p.m. on April 19, 2001, at the Meeting Room of the Board of Directors, 5019 Imhoff Place, Martinez, California, as the time and place for a public hearing pursuant to California Constitution, Article XIIID, Section 4. 2. Pursuant to Article XIIID of the California Constitution, as amended by Proposition 218, commonly known as the "Right to Vote on Taxes Act," notice of the proposed assessment was provided to all owners of affected parcels within the District, which notice contained a ballot whereby each owner could indicate support or opposition to the proposed assessment. 3. At the time and place for which notice was given, the Board of Directors conducted a public hearing, pursuant to California Constitution, Article XIIID, Section 4, and gave every person present an opportunity to comment on and object to the amount of the proposed assessment. 4. The Board finds that less than a majority of parcel owners who returned ballots, weighted by financial obligation, opposed the proposed assessment. PASSED AND ADOPTED this 19th day of April, 2001, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: NOES: ABSENT: Members: Members: Members: President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secretary, Central Contra Costa Sanitary District, County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Aim, District Counsel Page 8 of 12 EXHIBIT D RESOLUTION NO. RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT VINE HILL WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 99-3 The Board of Directors of the Central Contra Costa Sanitary District resolves: This Board has taken a series of actions preliminary to ordering the improvement in the Vine Hill Way Contractual Assessment District No. 99-3, Central Contra Costa Sanitary District, Contra Costa County, California, and now makes the following findings and orders: 1. The Board adopted a map showing the boundaries of the land benefitted by the proposed improvement. A copy of the boundary map was filed in the office of the County Recorder of the County of Contra Costa in the Book of Maps of Assessment and Community Facilities Districts. 2. The Board adopted its Resolution of Intention to order the improvement described therein under the Municipal Improvement Act of 1911, and directed Curtis W. Swanson, Environmental Services Division Manager, as the Engineer of Work for the Assessment District, to prepare the report required by Section 5989.22 of the Streets and Highways Code. The improvement is generally described as follows: Construction and installation of approximately 500 linear feet of sanitary sewer line, together with appurtenant work and facilities located at Vine Hill Way in Martinez, California. 3. The Board called a hearing of protests on the Vine Hill Way Contractual Assessment District No. 99-3. Notice of the hearing was given by publication, by street posting, and by mailing to affected parcel owners, all according to the Municipal Improvement Act of 1911. Affidavits of publication, posting, and mailing were filed with the Secretary of the District. 4. At the time and place for which notice was given, the Board of Directors conducted a public hearing pursuant to Section 5898.26 of the Streets and Highways Code, which included a summary of the Engineer's Report and gave every person present an opportunity to comment on and object to the proposed Contractual Assessment Program improvement and the extent of the Assessment District. Page 9 of 1 2 5. The Board further finds that written protests against the proposed improvement have not been made by owners representing more than one half of the area of the land to be assessed for the improvement. 6. The documents and events described in paragraphs 1 to 4, inclusive, are stated here in tabular form, with their dates and, where appropriate, their numbers. All documents are now on file with the District except as otherwise noted. Document or Event ~ 11/4/99 11/4/99 1 /24/01 3/28/01 3/28/01 Pending Number or Action a. Resolution of Intention b. Resolution Approving Boundary Map c. Boundary Map Filed with County Recorder d. Certificate of Mailing Notice of Improvement e. Certificate of Posting Notice of Improvement f. Affidavit of Publication of Notice of Improvement Filed 7. The Board approves the Engineer's Report and each component part of it, including each exhibit incorporated by reference in the report. 8. The Board finds that the Engineer of Work, in the Engineer's Report has fairly and properly apportioned the cost of the improvement to each parcel of land in the Assessment District in compliance with the agreement between the owners and in proportion to the special benefits derived by each parcel, in relationship to the entirety of the capital cost of the improvement. The Board hereby confirms and levies each individual assessment as stated in the Engineer's Report. 9. The Board orders the improvement described in paragraph 2 and as detailed in the Engineer's Report. 10. According to Section 10603 of the Streets and Highways Code, the Board designates the District Controller to collect and receive payment of the assessments. 11. The Board independently finds that this project is exempt from the California Environmental Quality Act (CEQA) under District CECA Guidelines, Section 5.2(b)(3), since it can be seen with certainty that there is no possibility that the activity in Question may have a significant adverse effect on the environment. This certainty is based on the District's past experience with numerous similar sewer construction projects, the developed nature of the project environment, and the limited service area of the project (no potential for growth inducement). Page 10 of 1 2 PASSED AND ADOPTED this 19th day of April, 2001, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: NOES: Members: ABSENT: Members: President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secretary, Centr.al Contra Costa Sanitary District, County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Aim, District Counsel Page 11 of 1 2 Construction Engineering District Services TOTAL SUMMARY OF PROJECT COSTS VINE HILL WAY CAD NO. 99-3 $85,000 1 5,000 5.091 $105.091 EXHIBIT E Page 1 2 of 1 2 CONTRACTUAL ASSESSMENT DISTRICTS BOARD DECISION POINTS 1. Initiate Formation of CAD 2. Conduct Public Hearing; Approve Engineer's Report and Assessment; Order Improvement 3. Confirm and Levy Final Assessments U: \CAD\BoardDec.OH. wpd "0 ti o ~ :c '" <= .;; ,,- a. o E ::: ~ III o o o ,,- III a. o ~ u "!- o o N 0: ~ 6 "" AD ~ N Z EZ ' -- Z I PROPOSED . CAD AREA EXISTING SEWER PLANNED CAD SEWER CAD PARTICIPANTS * o 80 , 160 , FEET Central Contra Costa Sanitary District Attachment PROPOSED BOUNDARY OF VINE HILL WAY CAD NO. 99-3 DISTRICT PROJECT NO. 5513 A Page 6 of 12 VINE HILL WAY CAD 99-3 . SERVES 5 PROPERTIES . 5 INTERESTED OWNERS . 500 FEET OF 8-INCH SEWER . 1 MANHOLE . ESTIMATED COST - $105,091 . COST / PARTICIPANT . LUMP SUM $21,018 . ANNUAL ASSESSMENT $ 2,981 U:\CAD\CAD Entrada Verde 2_15.wpd 0 0 0 ~ ~ en 0 0 M en N ('. ~ 0 ~ en 0 .. .. .. .. .. L!) <0 0 L!) <0 M q- <0 M 0 q- L!) en ~ ~ ~ q- L!) I- -<I> -<I> -<I> U - a:: ~ l- e en e - N C l- e z e w e ~N enC) enz w_ we:: en::) <cO ~ N ..JO 0 co M +-' <Cw a> =>> 0 0 0) 0 0 0 '"C 1-0 N 0 0 en :J Ue:: en a> 0 0 N +-' co <Cc.. N 0 co a::c.. <( 0 <( 0 0) I-<C u 0 <( c <( U 0 .- z u c >- U +-' .- 0 co a> >- co U $ co u co co E $ +-' '"C co 0 a> - co co a.. - l- e:: +-' s- - .", .- s- +-' ~ C a> c I vi Cij a> U a> > s- a> e 0) 0- :J co C 0- a> -< co .- .- - > a: > I .....J 0 0 0 N a -< y a -< y j Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 19, 2001 No.: 6.a. BIDS AND AWARDS Type of Action: AUTHORIZE AWARD/AUTHORIZE AGREEMENT Subject: AUTHORIZE AWARD OF CONSTRUCTION CONTRACT TO WAYNE G. SCHLOSSER CONSTRUCTION, INCORPORATED, FOR THE LAFAYETTE SEWER RENOVATION PROJECT, PHASE 2, DISTRICT PROJECT NO. 5166; AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE SECRETARY OF THE DISTRICT TO EXECUTE AN AGREEMENT WITH THE CITY OF LAFAYETTE FOR PAVING Submitted By: Wesley Adams, Senior Engineering Assistant Initiating Dept./Div. : Engineering Department / Capital Projects Division W. Adams W. Brennan ~ REVIEWED AND RECOMMENDED FOR BOARD ACTION: ..JJJ.- ~ ~ ISSUE: On April 10, 2001, sealed bids were received and opened for constructi n of the \ Lafayette Sewer Renovation Project, Phase 2, District Project No. 5166. The Board of Directors must authorize award of the contract or reject bids within 50 days of bid opening. Board of Directors' authorization is required for Agreements with other public agencies. RECOMMENDATION: Authorize award of a construction contract. Authorize Board President and the Secretary of the District to execute an agreement with the City of Lafayette for paving. FINANCIAL IMPACTS: Approximately $1,638,000, including design, bid price, contingency, and construction management. ALTERNATIVES/CONSIDERATIONS: Reject all bids, which is not recommended. BACKGROUND: The District's 1,400 miles of collection sewers has pipe segments that range in age from new to over 100 years old. Some of these pipe segments are at the end of their useful life. This is evidenced by high maintenance costs and increases in call- outs by Collection System Operations Department (CSOD). Over 300 miles of small diameter sewers were constructed more than 40 years ago throughout the District, and the majority of sewers within the City of Lafayette fall into this category. 4/11/01 I :\Design\Position Papers\5166\51 66Award. W A. wpd Page 1 of 7 POSITION PAPER Board Meeting Date: A 1 1Q 2001 pri J' Subject: AUTHORIZE AWARD OF CONSTRUCTION CONTRACT TO WAYNE G. SCHLOSSER CONSTRUCTION, INCORPORATED, FOR THE LAFAYETTE SEWER RENOVATION PROJECT, PHASE 2, DISTRICT PROJECT NO. 5166; AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE SECRETARY OF THE DISTRICT TO EXECUTE AN AGREEMENT WITH THE CITY OF LAFAYETTE FOR PAVING The District implemented the sewer renovation program in 1991. Since that time an annual allowance for this program has been included in the Capital Improvement Budget and Plan. This program is an ongoing series of projects. Candidate sewer line segments are identified, evaluated, and placed on a priority list for replacement and/or renovation. The Lafayette Sewer Renovation Project will renovate or replace the most critical line segments identified in the City of Lafayette. In Fall, 2000, the City of Lafayette indicated to the District its plans to repave/reconstruct in Calendar Year 2001 several of the roads (North Thompson, Glen, Orchard and Oak Hill Roads) in which some of these critical line segments are located. Once repaved, the City has a five year moratorium on trenching. The District's Phase 2 project will reconstruct the sewers in these areas ahead of the City's project. To reduce repeated future impacts on residents, critical line segments in the same vicinity have been added to the District's Phase 2 project bringing the total footage of sewer to be replaced/rehabilitated to approximately 7,000 LF (see Attachment 1 for map). To further reduce impacts on the residents and to leave the public roads in good condition after construction, staff has negotiated with the City a cost sharing agreement for pavement restoration in the amount of $90,000 ($30,000 represents the cost the District would have expended on final paving and restoration, and $60,000 represents the cost the District would have expended on restoration of our failed trench on Glen Road). Under the agreement, the City's paving contractor will do all the final paving and street restoration of the sewer trench sections. A similar cost sharing agreement for $10,000 has been negotiated with the Soares Lane Homeowners. The plans and specifications for this project were prepared by District staff. The engineer's estimate for construction of Phase 2 is $1,500,000. This project was advertised on March 22 and 28, 2001. Five sealed bids ranging from $917,779 to $1,594,071 were received and publicly opened on April 10, 2001. A summary of bids received is shown in Attachment 2. The Capital Projects Division staff conducted a technical and commercial review of the bids and determined that the bid submitted by Wayne G. Schlosser Construction, Incorporated, is the lowest responsible bid. 4/11/01 1:\Design\Position Papers\51 66\51 66Award.WA.wpd Page 2 of 7 POSITION PAPER Board Meeting Date: Apri' 19, 2001 Subject: AUTHORIZE AWARD OF CONSTRUCTION CONTRACT TO WAYNE G. SCHLOSSER CONSTRUCTION, INCORPORATED, FOR THE LAFAYETTE SEWER RENOVATION PROJECT, PHASE 2, DISTRICT PROJECT NO. 5166; AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE SECRETARY OF THE DISTRICT TO EXECUTE AN AGREEMENT WITH THE CITY OF LAFAYETTE FOR PAVING The District will administer the construction contract and will provide contract administration, inspection, survey, office engineering, and shop drawing review. The funds required to complete this project, as shown in Attachment 3, are $1,398,000. The total cost of the Lafayette Sewer Renovation Project, Phase 2, is anticipated to be $1,638,000. Included in the total cost is $100,000 for final paving of the streets which will be performed by the City of Lafayette paving contractor and the Soares Lane Homeowners. Construction of the improvements to the Lafayette sewers is included in the fiscal year 1999-2000 Capital Improvement Budget (CIB) on pages CS-57 through CS-61. Staff has conducted a cash flow analysis of the Sewer Construction Fund and concluded that adequate funds are available for this project. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 18.2, since it involves only alterations of existing facilities with negligible or no expansion of capacity. Authorization of the construction contract for this project will establish the Board of Directors' independent finding that the project is exempt from CEQA. RECOMMENDED BOARD ACTION: Authorize award of a construction contract in the amount of $917,779.25 for construction of the Lafayette Sewer Renovation Project, Phase 2, D.P. 5166, to Wayne G. Schlosser Construction, Incorporated, the lowest responsible bidder. Authorize the President of the Board of Directors and the Secretary of the District to execute an agreement with the City of Lafayette for paving. 4/11/01 1:\Design\Position Papers\5166\5166Award.WA.wpd Page 3 of 7 RD E GLEN RD LINCOLN WAY c '" " ~ "0 .0 <D <D :;; ..- .r= u .): "0 ..- .0 <D <D :;; -;;; '"' en "0 u ~ Central Contra Costa Sanitary District ~~ " 0 4000 8000 , , FEET Attachment N g LAFAYETTE SEWER RENOVATION PHASE 2, X5166B 1 5 o N '" !Ii: to o Page 4 of 7 ATTACHMENT 2 Central Contra Costa Sanitary District SUMMARY OF BIDS PROJECT NO. X5166 LAFAYETTE SEWER RENOVATION - PHASE 2 DATE APRIL 10. 2001 LOCATION LAFAYETTE. CALIFORNIA ENGR. EST. $ 1.500.000 BIDDER (Name, Telephone & Address) BID PRICE 1 D' Arcy and Harty Construction $ 1,222,805 1300 Carroll A venue San Francisco, CA 94124 (415) 822-5200 2 D. E. Bianchini, Incorporated $1,447,540 ATTN: DAVE BIANCHINI 339 Borica Place Danville, CA 94526 (925) 831-0400 3 McGuire and Hester $ 1, 194,990 ATTN:DUANESCHULZE 9009 Railroad Avenue Oakland, CA 94503 (510) 632-7676 Ext. 122 4 Wayne Schlosser $ 917,779.25 910 Podva Lane P. O. Box 1087 Danville, CA 94526 (925) 648-2400 5 Don Lemmings $ 1,594,071 1460 Washington Boulevard, C-3 P. O. Box 2173 Concord, CA 94521 (925) 672-5600 BIDS OPENED BY Joyce E. Murphy DATE April 10 2001 SHEET NO -L OF-L Page 5 of 7 ATTACHMENT 3 LAFA VETTE SEWER RENOVATION PROJECT, PHASE 2 DISTRICT PROJECT NO. 5166 POST -BID/PRECONSTRUCTION ESTIMATE ITEM DESCRIPTION TOTAL $ 917,779 $ 183,221 PERCENT OF ESTIMATED CONSTRUCTION 1 . Construction Contract 2. Contingency at 20.0 percent 3. Joint Paving Projects . City of Lafayette/CCCSD Joint Paving . Soares Lane/CCCSD Joint Paving CONSTRUCTION TOTAL: $ 90,000 $ 10.000 $ 1,201,000 100.0 4. Construction Management · District Forces Construction Management $ 20,000 Contract Administration/Inspection 1 86,500 SUBTOTAL CONSTRUCTION MANAGEMENT: $ 106,500 5. Consultant/Professional Services · Material Testing $ 10,000 . Arborist $ 2,500 · Geotech 1 5.000 SUBTOTAL CONSULTANT/PROFESSIONAL SERVICES: $ 17,500 8.9 1.5 6. Engineering and Other Services During Construction · District Forces . Office Engineering Services $ 1 2,000 . Record Drawings $ 5,000 . Community Relations $ 1 5,000 . Surveying $ 20,000 . Collection System Operations $ 1,000 . Public Agencies Coordination $ 5,000 CPD-GL-I:\Design\Position Papers\5166\PreconEst,wpd Page 6 of 7 PERCENT OF ESTIMATED ITEM DESCRIPTION TOTAL CONSTRUCTION . Community Relations Misc. $ 5,000 . Field Office (includes lap-top computer) $ 5,000 . Permit Inspection Fees $ 5.000 SUBTOTAL CONSTRUCTION ENGINEERING: $ 73,000 6.0 CONSTRUCTION MANAGEMENT AND ENGINEERING TOTAL (ITEMS 4, 5 & 6): $ 197,000 16.4 7. Prebid Expenditures (Planning and Design) $ 240,000 20.0 8. Total Project Cost $1,638,000 136.4 9. Funds Allocated to Date for This Portion of Work $ 240,000 10 Allocation Required to Complete Project $1,398,000 CPD-GL-I:\Design\Position Papers\5166\PreconEst.wpd Page 7 of 7 JOINT POWERS AGREEMENT BETWEEN CITY OF LAFAYETTE AND CENTRAL CONTRA COSTA SANITARY DISTRICT REGARDING PAVING RESTORATION THOMPSON ROAD AND OAK HILL ROAD AND TRENCH RESTORATION ON GLEN ROAD This Agreement dated July 9 ,2001, between the City of Lafayette and Central Contra Costa Sanitary District regarding paving restoration as part of the City of Lafayette's "2001 Pavement Management Program" Project #014-96368 provides as follows: 1. Parties: The City of Lafayette, herein called "City" and the Central Contra Costa Sanitary District, herein called "District." 2. Purpose and Scope: The City intends to construct roadway improvements along Thompson Road, Oak Hill Road, and Glen Road ("Roadway Improvements"). These Roadway Improvements are described in the plans and specifications for the City's "2001 Pavement Management Program" Project #014-96368. The District proposes to relocate and replace its sewer to a new location as shown and described in the plans and specifications for the District's Lafayette Sewer Renovation Project, Phase 2, D.P. 5166 ("Sewer Renovation"). In addition to replacing deficient sewers in the areas of the City's Roadway Improvements, the District will provide additional funds to repair the existing District sewer trench on Glen Road. As part of this Joint Powers Agreement, the City will expand its Roadway Improvements Project to provide trench repair in upper Glen Road and install approximately 1,000 lineal feet of drainage ditch along Thompson Road (Sta 13 + 00 to 23 + 00 described in the Sewer Renovation Project). The details of these improvements are delineated in Attachment 1. This Agreement outlines the responsibilities and requirements of the City and the District to accomplish design and construction of the paving restoration. 3. Definitions of Sewer and Roadway: In this Agreement "sewer" includes all of the sewer lines, manholes, manhole covers, lower house lateral sewers, clean-outs, and other appurtenances described in the contract documents (plans and specifications) prepared for the Lafayette Sewer Renovation Project, Phase 2, D.P. 5166. In this Agreement "roadway" includes all of the roadways, storm drains, sidewalks, landscaping, and other road appurtenances described in the contract documents (plans and specifications) prepared for the 2001 Pavement Management Program, Project #014:.96368. I :\Oesign\Wesley\JointPowersAgreement. wpd 4. Division of Responsibility for Bidding and Construction a. The City shall perform the tasks related to the Roadway Improvements work. The work shall include public notification, permit acquisition, compliance with the California Environmental Quality Act (CEQA) and other laws related to award of contract, advertisement for bids, and award of contract for the Roadway Improvements pursuant to applicable law, including all contract and project administration. b. The District shall perform the tasks related to the Sewer Renovation work. The work shall include public notification, permit acquisition, compliance with the California Environmental Quality Act (CEQA) and other laws related to award of contract, advertisement for bids, and award of contract for the Sewer Renovation pursuant to applicable law, including all contract and project administration. c. The contract documents for the Roadway Improvements shall include provisions requiring the successful bidder to (1) name the District, its directors, officers and employees as additional insured on any required general liability and automobile insurance policies, and (2) defend, indemnify, and hold harmless the District, its directors, officers and employees from liabilities in the same manner as for the City. d. The contract documents for the Sewer Renovation shall include provisions requiring the successful bidder to (1) name the City, its council members, officers and employees as additional insured on any required general liability and automobile insurance policies, and (2) defend, indemnify, and hold harmless the City, its council members, officers and employees from liabilities in the same manner as for the District. e. If during the construction of Sewer Renovation work there is any change arising from any cause which would affect the roadway improvements, the District Engineer shall advise the City Engineer without undue delay. It is the intent of this paragraph to give the City notice of any change of District project that would have material affect upon the City's work. 5. Indemnity: a. The District shall defend, indemnify, save, and hold harmless the City, its council members, officers, agents, and employees from any and all claims, demands, suits, costs, liability, and expenses, including reasonable attorneys' fees, for any damages, injury, sickness or death, including liability for inverse condemnation, nuisance or trespass (collectively "liability") to the extent arising out of the District's obligations under this Agreement, including, but not limited to, the design and performance of the Sewer Renovation project, public notification, permit acquisition, compliance with the California Environmental Quality Act (CEQA) and other laws related to 1:\Design\ Wesley\JointPowersAgreement. wpd 2 advertisements for bids and award of contract, and contract and project administration, except for liability arising through the sole or active negligence or willful misconduct of the City, its council members, officer, employees, contractors, or agents. The City shall defend, indemnify, save, and hold harmless the District, its directors, officers, agents, and employees from any and all claims, demands, suits, costs, liability, and expenses, including reasonable attorneys' fees, for any damages, injury, sickness or death, including liability for inverse condemnation, nuisance or trespass (collectively "liability") to the extent arising out of any of the City's obligations under this Agreement, including, but not limited to, the design and performance of the Roadway Improvements project, public notification, permit acquisition, compliance with the California Environmental Quality Act (CEQA) and other laws related to advertisements for bids and award of contract, and contract and project administration, except for liability arising through the sole or active negligence or willful misconduct of the District, its directors, officers, employees, contractors, or agents. b. Nothing in this Agreement is intended to affect the legal liability of either party by imposing any standard of care different from the standard of care imposed by law. 6. Cos1s.: The District shall pay the City $85,000 for that segment of the paving restoration that is the subject of this Joint Powers Agreement and is specifically described in Attachment 1. The District shall pay 100 percent of all costs associated with the Sewer Renovation project. The City shall pay 100 percent of all costs associated with the Roadway Improvements project. 7. Payment: Upon completion of the City's Roadway Improvements and receipt of invoice, the District shall pay the sum set forth in Section 6. The District shall make its payment to the City within thirty (30) days of receipt of the invoice. 8. Accountability: Both parties shall strictly account for all funds directly related to this Agreement and shall report to the other, upon request, on all pertinent receipts and disbursements. 9. Cooperation: The City and District agree to work cooperatively toward the successful completion of the Joint Project. 10. Modification of Agreement: This Agreement shall be subject to modification only by a subsequent written agreement executed by both of the parties. 11. Agreement Expiration: Except for the provisions of Section 5, which provisions shall survive the expiration of this Agreement, this Agreement shall expire upon the payment of all sums described in Sections 6 and 7 above. I :\Design\ Wesley\JointPowersAgreement. wpd 3 12. Entire Agreement: This Agreement contains the entire understanding of the parties concerning its subject matter. Any representation or promise of the parties relating to the subject matter shall not be enforceable unless it is contained in this Agreement or in a subsequent written agreement executed by the parties. 13. Successors: This Agreement shall inure to the benefit of and be binding upon the successors and assigns of both parties. 14. Notices: Any and all notices or documents to be delivered between the parties shall be deemed delivered: (1) upon hand delivery to the address below; (2) upon being sent and received via certified mail to the address below as evidenced by certified mail receipt; (3) upon begin sent via facsimile to the telephone number below as evidenced by facsimile receipt; or (4) five (5) days after being sent via first class mail. Facsimile transmission shall be promptly followed by first class mail. The addresses and facsimile numbers are as follows: TO THE CITY: Mr. Tony Coe Engineering Services Manager City of Lafayette 3675 Mt. Diablo Boulevard, Suite 210 Lafayette, CA 94549 Fax No. 925-284-3169 TO THE DISTRICT: Mr. Alex Rozul Associate Engineer Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 Fax No. 925-228-4624 15. Interpretation: Both parties have had ample opportunity, with the benefit of counsel, to comment upon the contents of this Agreement; therefore the rule that ambiguities in contracts are to be construed against the drafter, and any related rules, shall not apply. 16. Termination: Should District substantially breach this Agreement, the City may terminate this Agreement by providing the District with at least fifteen (15) days' advance written notice of termination and of the claimed substantial breach. This Agreement shall then terminate according to such notice unless District cures such claimed substantial breach within the period indicated in the notice, which as stated above shall be at least fifteen (15) days. 17. Attorneys' Fees: In the event either party to this Agreement brings an action to enforce or interpret this Agreement, the prevailing party in such action shall be entitled to attorneys' and witnesses' fees, as well as other costs. 1:\Design\ Wesley\JointPowersAgreement. wpd 4 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate by officials which the respective parties covenant have full authority to execute this Agreement. The effective date of this Agreement is when the last party signs the document; the effective date should be added to the space so indicated on the first page of this Agreement, once that date is determined. CENTRAL CONTRA COSTA SANITARY DISTRICT CITY OF LAFAYETTE Date: ?/1J~) Date: 7 - 2-3 ~O ( APPROVED BY: BY:~~)) ./J,~ Barbara D. Hockett President, Board of Directors ,~~ MAYOR Date: f/~/O( DATEr;).)' ~<101, ATTESTc7(~~ CITY CLERK ~~p~' ~~ Secretary of the District APPROVED AS TO FORM: DATE: 7 - 2.3-0 ( - ~ TY ATTORNEY APPROVED AS TO FORM: Date: ?--'? -e) ( i~ Kenton L. Aim Counsel for the District I :\Design\ Wesley\JointPowersAgreement. wpd 5 ATTACHMENT 1 Pursuant to the plans and specifications for the District's Lafayette Sewer Renovation Project, Phase 2, D.P. 5166 ("Sewer Renovation") and the 2001 Pavement Management Program" Project #014-96368. A. Existing Pavement Condition: The District is advised that the streets in the Project area have variable pavement conditions ranging from excellent to poor. The District will select and use mechanical equipment for this project that will minimize damage to the existing pavement along the Project site and all roads used to bring material and equipment to the Project site. The District will replace and repair pavement damaged by construction activities. 8. Pavement Restoration - District Responsibilities: The District will provide the following pavement restoration activities: 1. Lines "8," "C," "D," and upper Glen Road of the Sewer Renovation Project. The District will properly compact the backfill material and apply one inch of final AC at the end of each day. The District will saw cut the existing paving for trenching, but no saw cut is required for the final 1-inch AC paving. No additional pavement removal is required. The District will maintain 1-inch final AC paving until November 1, 2001. C. Pavement Restoration - Services Not to be Performed by District: Pursuant to this Agreement, the District will not provide the following services described in the City of Lafayette Encroachment Permit: 1 . Installation of a minimum of two inches of cold or hot mix temporary asphalt in the finished trench, rolled smoothed, at the end of each day; 2. Saw cut of the finished trench an additional 12-inch minimum, each side, to provide a smooth joint for the new pavement; 3. Provide a final 3-inch trench paving course; and 4. Slurry seal the entire road section. D. Pavement Restoration - Additional City Responsibilities: The City will expand its Roadway Improvements Project to provide the following pavement restoration activities: I :\Design\ Wesley\JointPowersAgreement. wpd 6 1. The City will provide the necessary additional design, construction and construction administration/management services in connection with the expanded roadway improvements for Thompson, Oak Hill, and Glen Roads. 2. On upper Glen Road, and per the city of Lafayette "2001 Pavement Management Program" Project #014-96368 and Encroachment Permit, the City will remove the existing AC pavement and three feet of the existing trench backfill along a portion of Glen Road, from Monticello Road, east for 1,036 lineal feet, and replace with City-approved backfill material and re- compact the trench backfill and road base, and final pave with a minimum of three inches of asphalt concrete. 3. The City will also install approximately 1,000 lineal feet of drainage ditch along Thompson Road (Sta 13 + 00 to 23 + 00 described in the Sewer Renovation Project). I :\Design\ Wesley\JointPowersAgreement. wpd 7 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 19, 2001 No.: 6. b. B IDS AND AWARDS Type of Action: AUTHORIZE AWARD Subject: AUTHORIZE THE GENERAL MANAGER TO ALLOCATE $111,000 FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY ACCOUNT AND AWARD CONSTRUCTION CONTRACT TO McGUIRE AND HESTER CONSTRUCTION COMPANY FOR THE ORINDA TRUNK SEWER URGENT REPAIR PROJECT, DISTRICT PROJECT NO X5530 Submitted By: Tom Godsey, Associate Engineer Initiating Dept./Div. : Engineering Department/Capital Projects Division ~OdSeY ~ eckl -WfL W. Brennan (J ~" REVIEWED AND RECOMMENDED FOR BOARD ACTION: ISSUE: Authorization by the Board of Directors is required for allocations from the Collection System Program Contingency Account in amounts greater than $25,000. On April 6, 2001, sealed bids were received and opened for construction of the Orinda Trunk Sewer Urgent Repair Project, District Project No. X5530. The Board of Directors must authorize award of the contract or reject bids within 50 days of bid opening. RECOMMENDATION: Authorize the General Manager to allocate $111,000 from the Collection System Program Contingency Account, and authorize award of a construction contract. FINANCIAL IMPACTS: Approximately $111,000 including construction, contingency, and construction management. ALTERNATIVES/CONSIDERATIONS: Reject all bids, which is not recommended. BACKGROUND: The District began a trunk and interceptor sewer TV inspection program in February of this year to evaluate corrosion problems in District concrete pipe. The 30- inch diameter reinforced concrete pipe (RCP) carrying the sewer flow from the Lower Orinda Pumping Station force main (see Attachment 1 for location) was one of the first sewers inspected in the program. The TV inspection revealed extensive corrosion throughout the sewer with a serious localized problem downstream of the junction structure. The sidewall of the sewer was corroded all the way through, and a void was clearly visible through the ,corrosion failure. Collection System Operations Department 4/11/01 I :\Design\Position Papers\5 530\AwardPP, wpd Page 1 of 6 POSITION PAPER Board Meeting Date: April 19, 2001 Subject: AUTHORIZE THE GENERAL MANAGER TO ALLOCATE $121,000 FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY ACCOUNT AND AUTHORIZE AWARD OF CONSTRUCTION CONTRACT TO McGUIRE AND HESTER CONSTRUCTION COMPANY FOR THE ORINDA TRUNK SEWER URGENT REPAIR PROJECT, DISTRICT PROJECT NO X5530 staff responded immediately and cordoned off the paving above the corroded sewer. Engineering staff fast tracked design for replacement of the worst section of the sewer, secured permits for the work from CalTrans and the City of Orinda, and advertised the work on March 22 and March 28, 2001. Four sealed bids were received and publicly opened on April 6, 2001. A summary of bids received is shown in Attachment 2. Capital Projects Division staff conducted a technical and commercial review of the bids and determined that the bid submitted by McGuire and Hester is the lowest responsible bid. The District will administer the construction contract and will provide contract administration, inspection, survey, office engineering, and shop drawing review. An initial allocation of $25,000 was made from the Collection System Program Contingency Account. The funds required to complete this project, as shown in Attachment 3, are $111,000. To minimize the traffic impacts, the 40-feet of 30-inch reinforced-concrete pipe downstream of the junction structure will be excavated and replaced at night during low traffic and sewer flow conditions. Concurrently with the replacement of the worst section of sewer, staff will be evaluating the condition of the junction structure. Depending on the level of corrosion found, the structure may be rehabilitated as a change order to the current contract or bid separately. In addition, staff is proceeding with the design to replace/rehabilitate later this year approximately 1,100 feet of 30-inch line that has been extensively corroded. Staff will provide a brief presentation on the pipe condition at the Board Meeting. This project is not included in the fiscal year 2000-2001 Capital Improvement Budget (CIB). Funds must be authorized from the Collection System Program Contingency of the CIB. Staff has conducted a cash flow analysis of the Sewer Construction Fund and concluded that adequate funds are available for this project. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 18.2, since it involves the repair of an existing facility with no expansion of capacity. Authorization of the construction 4111/01 I :\Design\Position Papers\5530\AwardPP. wpd Page 2 of 6 POSITION PAPER Board Meeting Date: April 19, 2001 Subject: AUTHORIZE THE GENERAL MANAGER TO ALLOCATE $121,000 FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY ACCOUNT AND AUTHORIZE AWARD OF CONSTRUCTION CONTRACT TO McGUIRE AND HESTER CONSTRUCTION COMPANY FOR THE ORINDA TRUNK SEWER URGENT REPAIR PROJECT, DISTRICT PROJECT NO X5530 contract for this project will establish the Board of Directors' independent finding that the project is exempt from CEQA. RECOMMENDED BOARD ACTION: Authorize the General Manager to allocate $111,000 from the Collection System Program Contingency Account, and authorize award of a construction contract in the amount of $67,200 for construction of the Orinda Trunk Sewer Urgent Repair Project, District Project X5530 to McGuire and Hester Construction Company, the lowest responsible bidder. 4/11/01 I :\Design\Position Papers\5530\AwardPP. wpd Page 3 of 6 <:: .., ~ " g '" '" / .<: <..> ~ o / o ..., '" '" / V> >, V> "0 <..> / .:,;, Central Contra Costa Sanitary District FEET Attachment ORINDA TRUNK SEWER URGENT REPAIR D.P. X5530 1 N 52 5 o N 0:: ~ Page 4 of 6 ATTACHMENT 2 Central Contra Costa Sanitary District SUMMARY OF BIDS PROJECT NO. X5530 ORINDA TRUNK SEWER URGENT REPAIR DATE APRIL 6. 2001 LOCATION ORINDA. CALIFORNIA ENGR. EST. $ 75.000 BIDDER (Name, Telephone & Address) BID PRICE 1 McGuire & Hester Construction 510-632-7676 $ 67,200 9009 Railroad Ave. Oakland, CA 94603 2 Horizon Construction Co. 925-372-3606 $148,450 POBox 159 Clayton, CA 94517 3 o R Lemmings 925-672-5600 $ 89,650* POBox 2173 Concord, CA 94521 4 Mountain Cascade 925-373-8370 $146,389 POBox 5050 Livermore, CA 94551 5 $ 6 $ 7 $ * Actual total much higher due to clerical error BIDS OPENED BY Joyce E. Murphy. Secretary of the District DATE April 6, 2001 SHEET NO -L OF -L Page 5 of 6 ATTACHMENT 3 ORINDA TRUNK SEWER URGENT REPAIR DISTRICT PROJECT NO. X5530 PROJECT BUDGET ITEM DESCRIPTION TOTAL PERCENT OF ESTIMA TED CONSTRUCT ION COST 1 Construction Cost $67,200 2 Contingency at 25 % $16,800 Construction Subtotal $84,000 1 00.0 % 3 Project Management/ Contract Administration $2,000 Project Inspection $10,000 Construction Management Subtotal $1 2,000 14.3% 4 Miscellaneous $2,000 Record Drawings $1 ,000 Collection System Operations $1,000 Permits/lnspection by Others $4,000 Materials Testing $4,000 Miscellaneous Subtotal $12,000 14.3% Construction Management Total $24,000 28.6% 5 Corrosion Evaluation of Junction $8,000 9.5% Structure 6 Prebid Expenditures $20,000 23.8% 7 Total Project Cost $136,000 161.9% 8 Funds Allocated to Date $25,000 9 Allocation Required to Complete Project $111,000 Page 6 of 6 ~ c: ""! 2 a C> .... on on ;- .s:: u .2 a ;- C> .... on on .:;; .. o u ~ Central Contra Costa Sanitary District o - 1000 FEET 2000 Attachment ORINDA TRUNK SEWER URGENT REPAIR D.P. X5530 1 N S2 8 .... Q: !1l:: . . . . . . -j I I C 0) .- ..--..... -c .- u. '+- ..J - ~ ~ 0 en 0 0 .- .... ... ~ 0 u ~ '+- 0) ~ t/) ... D.. 0 -c C .... 0 0 D. 0 ~ J: .- D. ... ... ~ 0) CO 0 ~ 0 :ECi) ~ M 0) 0) c. 0) ... E ... .... CO CO .- - ... ~ ~ ~ ~ >< (]) CO CUD.. - z 0)0 CO O)N >... > t/) W CO W ... .... 0) CO 0) }c; ~ .... > E ~ 0 0) .... 0) t/) E .- ... .- C > C > CO C/) ::) 0) ~ 0) 0 0) 0) 0 oS; ~en ~o ~:aE (]) "- a... -- -- Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 19, 2001 No.: 6.c. BIDS AND AWARDS Type of Action: AUTHORIZE AWARD Subject: AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO KAWEAH CONSTRUCTION COMPANY FOR THE STANDBY POWER SUPPLEMENTAL COOLING PROJECT, DISTRICT PROJECT NO. 6138 Submitted By: James L. Belcher, Senior Engineer 9'~ Initiating Dept./Div. : Plant Operations/Maintenance ~'\ D RECOMMENDED FOR BOARD ACTION: ISSUE: On April 5, 2001, sealed bids were received and opened for the Standby ower Supplemental Cooling Project, District Project No. 6138. The Board of Directors must authorize the award of the contract or reject bids within 50 days of the bid opening. RECOMMENDATION: Authorize award of a construction contract to Kaweah Construction Company. FINANCIAL IMPACTS: Approximately $215,000 including bid price, contingency, and construction management. AL TERNA TIVES/CONSIDERA TIONS: Reject all bids and cancel project or reject all bids and rebid project. BACKGROUND: This project addresses the two remaining deficiencies identified for correction on the two standby power generator sets. The first deficiency, marginal radiator cooling capacity, limits the amount of electricity that can be generated when the air temperature rises above 700 Fahrenheit. This project will install a supplemental, water- cooled, heat exchanger on each of the two diesel generator sets to allow full generating capacity at air temperatures up to 1050 Fahrenheit. The second deficiency, excessive radiator fan vibration, has led to numerous belt failures and lack of reliability. This project will add stiffening to the radiator fan support frame and improve the design of the radiator fan belt drive. A temporary back-up diesel generator will be provided for the period of time that the standby power diesel generators are being modified. For the location of this project, see Attachment 1. The project was advertised on March 19 and 26, 2001. Two bids, $161,554 and $165,000, were received and publicly opened on April 5, 2001. A summary of these bids is shown in Attachment 2. Plant Operations Department staff conducted a commercial and technical evaluation of these bids and has determined that Kaweah Construction 4/10/01 Page 1 of 5 - POSITION PAPER Board Meeting Date: April 19, 2001 Subject: AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO KAWEAH CONSTRUCTION COMPANY FOR THE STANDBY POWER SUPPLEMENTAL COOLING PROJECT, DISTRICT PROJECT NO. 6138 Company is the lowest responsible bidder with a bid amount of $161,554, which is above the engineer's estimate of $120,000. Staff has evaluated the bids and determined that the difference in bid price above the engineer's estimate resulted from: · Increased costs for the temporary generator due to the extremely tight energy market this summer, and · Costs for the heat exchanger escalated due to changes in the design that reflected additional requirements for cooling and long-term reliability. Staff feels that there would be little advantage to rebidding the project, since the energy market will remain tight and the heat exchanger price reflects the required design. Therefore, staff concludes that it is in the best interest of the public and the District to accept the bid from Kaweah Construction Company. Construction management services will be provided by District staff, in conjunction with WRMS Engineering, Inc. The additional allocation of funds required to complete this project is $195,000, as shown in Attachment 3. This project is included in the Fiscal Year 2000-2001 Capital Improvement Budget (CIB) on pages TP-87 through TP-89. Staff has conducted a cash flow evaluation of the Sewer Construction Fund and has concluded that adequate funds are available for this project. Staff has also concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 18.2, since it involves minor alterations to existing sewage facilities with no increase in capacity. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. This project completes the identified corrective work on the standby power diesel generators for the near term. RECOMMENDED BOARD ACTION: Authorize the award of a construction contract in the amount of $161,544 for the Standby Power Supplemental Cooling Project, District Project No. 6138, to Kaweah Construction Company, the lowest responsible bidder. 4/10/01 Page 2 of 5 - ~ N ~ 0 150 300 ~ FEET ~ i ! / ! / g /( 1r.J II & 11 II ;I ;I ;I II I I I' / ;1 II ;/ / ;/ / ,/ Central Contra Costa Sanitary District STANDBY POWER SUPPLEMENTAL COOLING PROJECT District Project 6138 Project Location Attachment 1 Page 3 of 5 Central Contra Costa Sanitary District ATTACHMENT 2 STANDBY POWER SUPPLEMENTAL COOLING PROJECT DISTRICT PROJECT ~ DP6138 SUMMARY OF BIDS Date: April 5, 2001 Location: Martinez, California Engineer's Est: $120,000 BIDDER (Name & Address) BID PRICE 1 Kaweah Construction Company $ 161,554 2 D.W. Nicholson Corp. $ 165,000 3 $ 0 4 $ 0 Bids Opened By: Joyce Murphy Date: April 5th, 2001 Sheet: 1 of 1 C\sam\SWG\Standby Power Supplemental Cooling\PosPaper-Summary of Bids. wpd Page 4 of 5 Central Contra Costa Sanitary District ATTACHMENT 3 STANDBY POWER SUPPLEMENTAL COOLING PROJECT DISTRICT PROJECT ~ DP6138 POST - BID I PRE - CONSTRUCTION ESTIMATE Percent of Estimated Construction Item Description Amount Cost 1 CONSTRUCTION Construction Contract $ 161,554 Contingency at 15% $ 24,446 Total Construction $ 186,000 100% 2 CONSTRUCTION MANAGEMENT WRMS Engineering $ 20,000 District Staff $ 9,000 TOT AL CONSTRUCTION $ 29,000 16% MANAGEMENT 3 TOTAL CONSTRUCTION PHASE $ 215,000 116% COST 4 TOTAL PREBID EXPENDITURES Includes engine rebuild in 2000 and $ 140,000 75% the ensuing engine failure analysis investigation. 5 TOTAL ESTIMATED PROJECT COST $ 355,000 191% 6 FUNDS AUTHORIZED TO DATE $ 160,000 7 ADDITIONAL ALLOCATION $ 195,000 NEEDED TO COMPLETE PROJECT C:\sam\SWG\Standby Power Supplemental Cooling\PosPaper-Estimate.wpd. Page 5 of 5 I""'- .-." ENERGY UPDATE DOUGLAS CRAIG BOARD OF DIRECTORS MEETING APRIL 19, 2001 1l......~!i"'" '... R \ . LANDFILL GAS CONTRACT . SIGNED CONTRACT . START DATE "ON OR BEFORE MAY 30, 2001 . CONTRACT TERM - JUNE 30, 2002 . RENEWABLE ON AN ANNUAL BASIS 1 "" NATURAL G~S CONTRACTS . PURCHASED ONE YEAR NYMEX STRIP (20,000 DTH/MO) AT $5.25/DTH . PURCHASED NYMEX FOR MAY AND JUNE (20,000 DTH/MO) AT $5.32/DTH . PURCHASED BASIS FOR MAY AND JUNE (40,000 DTH/MO) AT $7.73/DTH "" ......,,"",('(t:............. :., <.... ",' :", , . . ON-PEAK (NOON - 6:00 P.M.) 35.3 CENTS PER KW HOUR ELECTRICAL IMPORT (PG&E) COSTS . OFF-PEAK (9:00 P.M. - 8:00 A.M.) 5.9 CENTS PER KW HOUR . PARTIAL PEAK NOT SPECIAED . DEMAND CHARGE NOT SPECIFIED 2 I r-- I I I I I l----- o o ...... M ;: ...........~.. .... 0: o ll. ~ i I I I r-.... o o LO M ; i I I i ~ I ~ ......-._.J1L..._._..--....-...... . I .; I o o M M o o T"" M M>I "gNv - ., I o o 0) C\I o o ...... C\I M C\I T"" C\I 0) T"" ...... T"" LO T"" ~ II) M C ~ T"" u.. C\I 0 "0 C W (\3 E :E Q) t= "0 T"" ~ T"" 0) ...... LO M T"" o o LO C\I (f) UJ Z ...J UJ o :::J (!) >- (!) 0::: UJ Z UJ UJ (f) :::J LL. o UJ ~ - .- IZ1 'tS s= ns ~ a.. ""'" r- co r- o (V') 'C C. <( ...c:: C> ::J o ~ ...c:: +-' z c::: 0 0 N .i UJ Z r- l- i Z r- \ ~ \ r- \ \ \ \ ~ '" <( \ w I ~ .~..... u. I ~ ~ ) (..oQ)~ ~ ~..\ I (~~ \ Z, \\ '~ ! / ....J <( ~~ <(<( ~:f U ~ <( w ~ Z o I a:: .', UJ . \ I- \', ". Z. ~\.--./ ~ .. f ____. ~ ./ -,_J ..... (V') ~ Q) ..0 o +-' U o ...c:: C> ::J e ...c:: +-' ..... >. __ ro // ::E'- // ~..... ."- -------~ a:: UJ ~ ~ :J U) , \ / / o M l- I t9 Z o ~ l- I t9 Z o ~ o M CO o o I- o (V') ..... N ~ <( UJ Q. u.. u.. o a:: <( ~~ U)...J >-...J ~ <( <( (.9 ~ Z :JU) Cl U) >- ~ ~ <( U)O ~:J 00 a::J: :JI- I-U) <(0 U)::E a a Za a >-co a OM CD <(..... 0..... a 0' ZN ~z , , a IJ) LUO LUO 00 M 0) ;:z Ma ..... (J) coCO N o::~ 0..... ~ .- LU<( .:i - ::ELU <( .- ::Ea.. ~~ LU a.. >- ~z 0::<( LL 0:: (/)0 <(LU LL <( a.. a.. 0 => Z <( .., u.. 0 (/) <( RESOLUTION NO. RESOLUTION DESIGNATING GENERAL MANAGER TO SIGN AND FILE A PEAK LOAD REDUCTION GRANT APPLlCA liON WHEREAS, the State of California has authorized the Energy Commission to provide grants to finance public agencies for projects that will reduce peak electrical demand; WHEREAS, Central Contra Costa Sanitary District believes in adopting and developing new and innovative projects that will lower energy costs; WHEREAS, District Project No. 7199 (Solids Conditioning Ventilation Improvement Project) shall provide the Treatment Plant with an efficient alternative in operating the existing equipment, which will in turn reduce electrical import demand. NOW THEREFORE, BE IT RESOLVED, that the District Board of the Central Contra Costa Sanitary District authorizes Central Contra Costa Sanitary District to apply for funding from the California Energy Commission to reduce peak electrical demand at the Wastewater Treatment Plant in Martinez. BE IT RESOLVED, that if recommended for a funding award by the California Energy Commission, the District Board of the Central Contra Costa Sanitary District ~uthorizes the General Manager or his/her designee, on behalf of the Central Contra Costa District, to accept a grant up to $60,000. BE IT FURTHER RESOLVED that the General Manager or his/her designee of the Central Contra Costa Sanitary District is hereby authorized and empowered to execute in the name of Central Contra Costa Sanitary District all necessary documents to implement and carry out the purpose of this resolution, and to undertake all actions necessary to undertake and complete the peak electrical demand project. PASSED AND ADOPTED this 19th day of April, 2001 by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: NOES: Members: ABSENT: Members: Barbara D. Hockett . President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Joyce E. Murphy Secretary, Central Contra Costa Sanitary District, County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Aim, District Counsel Central Contra Costa Sanitary District 5019 ImtlOff Place, Martinez, Ca 94553 (925) 228-9500 . \\WW cClltla!Stlll org FAX: (925) 689-1232 CHARLES Iv. BATTS o-nJl Manager April 20, 2001 KENfON L. AIM Cawnselfar tJw District (925) 938-1430 JOYCE E. MURPHY Secretary afthe District Mr. Mike Hartley California Energy Commission Program Planning & Process Energy Office 1 516 Ninth Street, MS-42 Sacramento, CA 95814 Dear Mr. Hartley: PEAK LOAD REDUCTION PROGRAM; WATERIWASTEWATER GRANT APPLICATION FROM CENTRAL CONTRA COSTA SANITARY DISTRICT Enclosed is the official Resolution you requested for our grant application. We are pleased to hear that additional funding has become available by the state to continue your efforts into lowering peak electrical load. We look forward to creating a partnership with you. If you have any questions, please call me at (925) 229-7366. Sincerely, ,-' ~ c-~;;;:::~ /':;:?~. Edgar Lopez Staff Engineer Enclosure bee: C. Batts J. Belcher J. Kelly J. Murphy Energy File S :\MAINTENG\Lopez\200 1 \Grant\Resolution.ltr. wpd @ Recycled Paper - .- RESOLUTION NO. 2001-054 RESOLUTION DESIGNATING GENERAL MANAGER TO SIGN AND FILE A PEAK LOAD REDUCTION GRANT APPLICATION WHEREAS, the State of California has authorized the Energy Commission to provide grants to finance public agencies for projects that will reduce peak electrical demand; WHEREAS, Central Contra Costa Sanitary District believes in adopting and developing new and innovative projects that will lower energy costs; WHEREAS, District Project No. 7199 (Solids Conditioning Ventilation Improvement Project) shall provide the Treatment Plant with an efficient alternative in operating the existing equipment, which will in turn reduce electrical import demand. NOW THEREFORE, BE IT'RESOLVED, that the District Board of the Central Contra Costa Sanitary District authorizes Central Contra Costa Sanitary District to apply for funding from the California Energy Commission to reduce peak electrical demand at the Wastewater Treatment Plant in Martinez. BE IT RESOLVED, that if recommended for a funding award by the California Energy Commission, the District Board of the Central Contra Costa Sanitary District <;1uthorizes the General Manager or his/her designee, on behalf of the Central Contra Costa District, to accept a grant up to $60,000. BE IT FURTHER RESOLVED that the General Manager or his/her designee of the Central Contra Costa Sanitary District is hereby authorized and empowered to execute in the name of Central Contra Costa Sanitary District all necessary documents to implement and carry out the purpose of this resolution, and to undertake all actions necessary to undertake and complete the peak electrical demand project. - Resolution No. 2001-05~ Page 2 of 2 PASSED AND ADOPTED this 19th day of April, 2001 by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: ~ernbers: Boneysteele, Menesini, Nejedly, Hockett NOES: ~ernbers: None ABSENT: ~ernbers: Lucey ~r(~ Barbara D. Hockett . President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: J Se etary, Central Contra Costa Sanitary District, County of Contra Costa, State of California APPROVED AS TO FORM: /LJ} g:,t(J Kenton L. AIm, District Counsel I, Joyce E. Murphy, Secretary of the Central Contra Costa Sanitary District, of the County of Contra Costa, State of California, do hereby certify that the foregoing is a full. true, and correct copy of Resolution No. 2001-054. passed and adopted by said District Board on April 19. 2001. Dated: April 20, 2001 - - Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 19, 2001 No.: IO.a. BUDGET AND FINANCE Type of Action: REVIEW SELF-INSURANCE FUND BUDGET FOR FISCAL YEAR 2001- 2002 Subject: REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF-INSURANCE FUND AND APPROVE THE ALLOCATION OF $200,000 TO THE FUND FROM THE 2001-2002 O&M BUDGET Submitted By: David J. Clovis, Safety & Risk Manager Initiating Dept./Div. : Administrative/Safety & Risk Management ~~ REVIEWED AND RECOMMENDED FOR BOARD ACTION: ISSUE: The Self-Insurance Fund (SIF) is to be reviewed each year by the oard of Directors with the staff presenting funding recommendations for the upcoming fiscal year. RECOMMENDATION: Receive the 2001-2002 Self-Insurance Fund Budget and authorize the allocation of $200,000 to the fund from the 2001-2002 O&M Budget. FINANCIAL IMPACTS: The impact of this action requires the allocation of $200,000 from the 2001-2002 O&M Budget to the Self-Insurance Fund. ALTERNATIVES/CONSIDERATIONS: The alternatives to this action are to provide less funds than recommended, to not fund the Self Insurance Fund or to increase the fund balance. BACKGROUND: The District has self-insured most of its liability and some of its property risks since July 1, 1986, when the Board approved the establishment of the Self- Insurance Fund. The SIF has effectively funded District losses over its fifteen year history and it remains financially sound. In 1994, a new Government Accounting Standards Board Statement No. 10 (GASB-1 0) set forth requirements on how public agencies must fund their self-insured risks. To assure compliance with GASB-1 0, the District restructured the SIF into three sub-funds. Each of the three (3) sub-funds were established for funding specific risks: 4/1 2/01 R:\DJC\SIFpp01-02. wpd Page 1 of 7 """ POSITION PAPER Board Meeting Date: April 19, 2001 Subject: REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF-INSURANCE FUND AND APPROVE THE ALLOCATION OF $200,000 TO THE FUND FROM THE 2001-2002 O&M BUDGET . SUB-FUND A: GASB-10 Actuarially-based risks. These include general liability and automobile liability risks. Under the requirements of GASB-1 0, risks that could be actuarially studied must be funded based on an actuarial study which must be done every two years. General liability and automobile liability are readily studied throughout the insurance and self-insurance world to determine funding levels for these liabilities. The District obtained an actuarial review of its self-insured general liability and automobile liability last year which projected losses for these risks. The actuarial estimate of $901,365 was identified as the expected recommended funding level for liability of these risks for Fiscal Year 2000-2001. Sub-Fund A was established to insure these risks based on the District's having a $10,000,000 excess liability policy with a $500,000 self-insured retention. Budget planning for the 2001-2002 fiscal year has resulted in an allocation of $1,066,924 to Sub-Fund A as recommended by the actuarial study completed by Advanced Risk Management Techniques in 2000. An Actuarial study will be performed during fiscal year 2001-2002 to determine future funding levels as required by GASB-1 O. . SUB-FUND B: GASB-10 Non-actuarially-based risks. These include employment related and pollution related risks. GASB-10 requires that all potential risks, including employment related and pollution related, be adequately and soundly funded even though these risks are not actuarially reviewed. An actuarial study was not required for these risks since losses for employment related and pollution related risks are often predicted with less accuracy because these types of cases occur infrequently but may result in extremely high costs and losses. With guidance from risk management and insurance specialists, the District established Sub-Fund B at $2,450,000 to fund employment related and pollution related risks based on the purchase of the above mentioned excess liability insurance policy. The liability policies provide limited coverage in the areas pollution and employment related risks. A further review by staff indicated that allocating $2,450,000 to Sub-Fund B in fiscal year 2001-2002 is appropriate. . SUB-FUND C: Non-GASB-10 risks. This Sub-Fund covers risk management program insurance premiums, potential losses from uninsurable risks, and the costs of initiating claims and lawsuits against others who have damaged the District. The District established this Sub-Fund to finance non-GASB-1 0 risks under our risk management program. Specific costs include: insurance premiums for a $10,000,000 excess liability policy; and insurance premiums for insuring District 411 2/01 R:\DJC\SIFpp01-02.wpd Page 2 of 7 - POSITION PAPER Board Meeting Date: Apri 1 19. 2001 Subject: REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF-INSURANCE FUND AND APPROVE THE ALLOCATION OF $200,000 TO THE FUND FROM THE 2001-2002 O&M BUDGET properties for fire, explosion, water damage, etc. for losses above $500,000. This Sub-Fund should be maintained at a level to support these defined costs as well as to cover the required $250,000 property damage self-insured retention and provide adequate funds to replenish Sub-Fund A or B and was initially established at a level above $2,000,000. Sub-Fund C is projected to be at a level of $1,427,072 ending June 30, 2001 and $861,513 ending June 30, 2002. Exhibit II, III & IV (attached) presents the projected Fund A, Fund B and Fund C 2000- 2001 budget summary. Exhibit I (attached) presents a recent financial history and projection of the SIF and shows that the total reserves are projected at $4,778,437 ending June 30, 2001. This is a decrease of $435,465 over the total SIF reserves of $5,213,902 at the beginning of the 2000-2001 budget year. Although not specifically required under GASB 10, the District's actuarial report commented on the 2000-2001 program year proposed funding levels for Sub-Fund B. The actuary report stated that the funding levels were prudent and within industry standards and therefore it is recommended to maintain the same funding levels for 2001-2002. The 2001-2002 SIF budget estimates total revenues of $492,000 and total expenses of $892,000, which will bring the projected 2001-2002 total SIF to $4,378,437 on June 30, 2002. The budgeted revenues include a recommended allocation of $200,000 from the 2001-2002 O&M budget to the SIF. The $200,000 allocation would help maintain the SIF at a funding level as directed and approved by the Board. Budgeted revenues do not include any recovery from prior insurance coverages but only interest earned on the fund. In summary, the funding reserves for the SIF, as established by GASB-1 0 is the sum of Sub-Fund A and Sub-Fund B which totals $3,516,924 as well as Sub-Fund C of $861,513 to achieve the total SIF of $4,378,437 on June 30, 2002. Therefore, in keeping with the Board's direction last year, staff recommends that $200,000 be allocated from the O&M budget to maintain the SIF at its current level and provide prudent reserves for funding District losses. RECOMMENDED BOARD ACTION: Receive the proposed 2001-2002 Self-Insurance Fund Budget and approve the allocation of $200,000 from the 2000-2001 O&M budget. 411 2/01 R:\DJC\SIFppOl-02. wpd Page 3 of 7 Exhibit I CENTRAL CONTRA COSTA SANITARY DISTRICT SELF-INSURANCE FUND (SIF) July 1, 1998, Through June 30, 2002 Actual Projected Budget 1999-2000 2000-2001 2001-2002 150,000 175,000 200,000 58,374 20,000 20,000 17,640 26,952 0 0.00 0 0 0.00 0 0 290,683 305,665 272,000 $516,697 $527,617 $492,000 Actual 1998-1999 Revenues SIF Allocation from O&M Fund Insurance Allocation from HHW Subrogation Recovery Franchise Fee CCCSWA Acme Lit. Payments Interest Income Total Gross Revenues 100,000 o 36,118 o o 294,754 $430,872 Expenses Claims Adjusting 0 0 950 2,000 Insurance Consulting 0 0 0 5,000 Loss Payments 347,692 63,189 330,825 250,000 Legal Services 73,183 46,641 79,000 150,000 Technical Services 38,594 12,977 318,307 185,000 Insurance Premiums 284,902 223,204 234,000 300,000 Total Expenses 744,371 346,011 963,082 892,000 Revenues Over Expenses ($313,499) $170,686 ($435,465) ($400,000) Reserves Beginning of Year 5,356,715 5,043,216 5,213,902 4,778,437 Revenues Over Expenses (313,499) 170,686 (435,465) (400,000) End of Year $5,043,216 $5,213,902 $4,778,437 $4,378,437 Uncommitted Reserves 0 0 0 0 Actuarial Reserves - GASB 10 (Fund A) 675,000 675,000 901,365 1,066,924 Non-Actuarial Reserves - GASB 10 (Fund B) 2,450,000 2,450,000 2,450,000 2,450,000 Non-GASB 10 Reserves (Fund C) 1,918,216 2,088,902 1,427,072 861,513 Total Reserves $5,043,216 $5,213,902 $4,778,437 $4,378,437 Page 4 of 7 SELF-INSURANCE FUND Projected 2000-2001 SUB-FUND A: GASB-10 ACTUARIALLY BASED RISKS GENERAL LIABILITY AND AUTOMOBILE LIABILITY Actuarial Reserves-GASS 10 2000\2001 : $901,365 Revenues O&M $0 Recovery $26,952 Interest $83,920 TOTAL REVENUES $110,872 Expenses Losses $330,825 Legal $69,000 Technical $318,307 TOTAL EXPENSES $718,132 Revenues over expenses ($607,260) Reserves: Transfer from Sub-Fund C $607,260 TOTAL RESERVES PROJECTED 6/30/01 $901,365 Transfer from Sub-Fund C 7/01/01 $165,559 TOTAL RESERVES PROJECTED 7/01/01 $1,066,924 - Exhibit II Page 5 of 7 - SELF-INSURANCE FUND Projected 2000-2001 SUB-FUND B: GASB-10 NON-ACTUARIALL Y BASED RISKS EMPLOYMENT RELATED AND POLLUTION RISKS Beainnina Reserves $2,450,000 Revenues O&M $0 Recovery $0 Interest $142,745 TOTAL REVENUES $142,745 Expenses Losses $0 Legal $0 Technical $0 TOTAL EXPENSES $0 Revenues over expenses $142,745 Reserves: Transfer to Sub-Fund C 6/30/01 $142,745 TOTAL RESERVES PROJECTED 6/30/01 $2,450,000 Exhibit III Page 6 of 7 -- SELF-INSURANCE FUND Projected 2000-2001 SUB-FUND C: NON GASB-10 RISKS RISK MANAGEMENT PROGRAM INSURANCE PREMIUMS AND COSTS OF INITIATING CLAIMS/LAWSUITS AGAINST OTHERS Beainnina Reserves $1,862,537 Revenues O&M $175,000 Recovery $0 Ins. Recovery HHW $20,000 Interest $79,000 TOTAL REVENUES $274,000 Expenses Excess Liability $155,000 Property $79,000 Losses $0 Legal $10,000 Technical $0 Claims/Insurance Consulting $950 TOTAL EXPENSES $244,950 Revenues over expenses $29,050 Reserves: Transfer to Sub Fund A $607,260 Transfer from Sub Fund B $142,745 TOTAL RESERVES PROJECTED 6/30/01 $1,427,072 Transfer to Sub Fund A 7/01/01 $165,559 TOTAL RESERVES PROJECTED 7/01/01 $1,261,513 Exhibit IV Page 7 of 7 SELF INSURANCE FUND .."'.2001-2002 . 2000-2001 Expected Performance . Fund Balance Comparison . Budget 2001-2002 . Insurance Costs . Recommendations Projected Expense vs Revenue SIF - 1,400,000 1,200,000 97/98 98/99 99/00 00101 Fund Balance 99/00 f'''' Projected Fund Balance 00/01 & 01/02 52,500,000 51,000,000 5500,000 so 99/00 00/01 .01102 111 Sub Fund A [] Sub Fund B . Sub Fund C I ...- 1 i~ Proposed Budget Fund A, 8, & C 2001/2002 Fund A RevcAuc $71;655 Expense $435,000 Fund 8 Revenue $146,815 Expense $95,000 Fund C Revenue $273,530 Expense $362,000 Total Revenue Total Expense $492,000 $892,000 n"j. Actuarial Eval~ation . Advanced Risk Management Techniques, Inc. . Recommended Funding For Fund A at Expected $1,0066,924 . Recommended Funding For Fund B $2,450,000 ,~ Insurance C!:?~ $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 '97- '98- '99- '00- '01- 98 99 00 01 02 .... 2 .. ". '., -. ,~ Recommend~~i()ns . Receive proposed 2001/2002 Self- Insurance Fund Budget . Allocate $200,000 from 0 & M Budget to Self-Insurance Fund ... 3