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HomeMy WebLinkAbout07-05-01 AGENDA BACKUP Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 3.a. CONSENT CALENDAR Type of Action: ACCEPT CONTRACT WORK Subject: ACCEPT THE CONTRACT WORK FOR THE ORINDA TRUNK SEWER URGENT REPAIR, DISTRICT PROJECT 5530, IN ORINDA, AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION Submitted By: Tom Godsey, Associate Engineer Initiating Dept./Div. : Engineering/Capital Projects ~~ tJ-Jh W. Brennan OtJ- A. Farrell REVIEWED AND RECOMMENDED FOR BOARD ACTION: ISSUE: Construction has been completed on the Orinda Trunk Sewer Urgent Repair (District Project 5530) in Orinda, and the work is now ready for acceptance. RECOMMENDATION: Accept the contract work for the Orinda Trunk Sewer Urgent Repair Project, and authorize the filing of the Notice of Completion. FINANCIAL IMPACTS: None related to this action. AL TERNATIVES/CONSIDERATIONS: Not applicable. Filing the Notice of Completion is advisable under the California Civil Code Section 3093. 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 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 completely through, and a void was clearly visible through the corrosion failure. Collection System Operations Department staff responded immediately and cordoned off the paving above the corroded sewer. This project involved excavating and replacing approximately 46 feet of the 30-inch RCP with 30-inch polyvinylchloride (PVC) pipe-lined RCP and installing one trunk manhole. Plans and specifications were prepared by District staff. 6/28/01 CPD-GL- Page 1 of 2 POSITION PAPER Board Meeting Date: June 21, 2001 Subject: ACCEPT THE CONTRACT WORK FOR THE ORINDA TRUNK SEWER URGENT REPAIR, DISTRICT PROJECT 5530, IN ORINDA, AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION Concurrently with the replacement of the worst section of sewer, staff, with the assistance of Villalobos and Associates Consulting Engineers, Inc., evaluated the condition of the junction structure. General corrosion was discovered throughout the junction structure with a structural failure in one spot. The structural failure was repaired. The entire structure will be lined at a future date. On April 19, 2001, the Board of Directors (Board) authorized the award of a contract for the construction of the project to McGuire and Hester Construction Company. The Notice to Proceed was issued on May 16, 2001. The work was completed on June 6, 2001. Additional costs of $32,000 were incurred with the addition of the Junction Structure repair and the discovery of a 24-inch diameter water main conflicting with the sewer trench. The project was constructed at night for the convenience of citizens, and it was completed without complaint. The remaining items of work consist of minor punchlist items which do not affect the project acceptance. The total authorized budget for the project is $136,000. The additional cost of $32,000 may cause the authorized budget to be exceeded requiring an allocation form the Collection System Program Contingency Account. The budget includes the cost of engineering design, District forces, testing services, geotechnical services, and contractor services. An accounting of the project costs will be provided to the Board at the time of project closeout. It is appropriate to accept the contract work at this time. RECOMMENDED BOARD ACTION: Accept the contract work for the Orinda Trunk Sewer Urgent Repair Project, and authorize the filing of the Notice of Completion. Page 2 of 2 I :\Design\Position Papers\5 530\5 530Acceptance. wpd Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 3.b. CONSENT CALENDAR Type of Action: CONFIRM ASSESSMENTS Subject: CONFIRM AND LEVY FINAL ASSESSMENTS FOR THE FOREST LANE CONTRACTUAL ASSESSMENT DISTRICT NO. 99-1, DISTRICT PROJECT 5405 Submitted By: Curtis W. Swanson, Division Manager Initiating Dept./Div. : Engineering/Environmental Services Division REVIEWED AND RECOMMENDED FOR BOARD ACTION: f\~J::n"n ~ ISSUE: Work has been completed on the Forest Lane Contractual Assessment District No. 99-1 (CAD No. 99-1), and the final assessments can be established and levied. RECOMMENDATION: Adopt a resolution confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the office of the County Recorder for the Forest Lane CAD No. 99-1, District Project 5405. FINANCIAL IMPACTS: This action will allow the District to be reimbursed for project costs totaling $62,915. AL TERNATIVES/CONSIDERATIONS: Not applicable. BACKGROUND: The Board of Directors ordered improvements for the Forest Lane CAD No. 99-1 at its meeting held on February 3, 2000. The area is shown is Exhibit A. The work to install the improvements has been completed, and the final costs are known. The final costs are shown in Exhibit B. Based on these final costs, the final assessments for each property have been determined and appear as Exhibit C, Assessments Roll. The assessment would be $12,583 (prepaid) or $1,729.30 per year (1 O-year payments). The Board is requested to confirm and levy these final assessments and to authorize a Notice of Assessment to be recorded. A resolution has been prepared, which, if adopted, will confirm and levy assessments and authorize the recording of the Notice. This resolution is included as Exhibit D. RECOMMENDED BOARD ACTION: Adopt a resolution confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the office of the County Recorder for the Forest Lane CAD No. 99-1, District Project 5405. 6/28/01 U:\CAD\Forest Lane\Forestlane5405. wpd Page 1 of 6 LOCATION MAP N.T.S. t .....0...., CD * ~ Central Contra Costa ~ Sanitary District cO <> o <> '" ~ .;., '" PROPOSED BOUNDARY AND ASSESSMENT NUMBERS FOREST LANE CAD NO. 99-1 DISTRICT PROJECT NO. 5405 ALAMO o I 160 I 80 FEET I PROPOSED CAD AREA EXISTING SEWER PROPOSED 8" CAD SEWER MANHOLE ASSESSMENT NUMBER PARTICIPANT NON-PARTICIPANT Exhibit A Page 2 of 6 EXHIBIT B FOREST LANE CONTRACTUAL ASSESSMENT DISTRICT C.A.D. NO. 99-1; FIVE PARCELS FINAL COST REPORT June 18, 2001 UNIT ITEM QUANTITY IUNITS COST AMOUNT Construction 8-inch sewer 474 LF $70 $33,180 Standard Manhole 2 EA $ 3,000 $ 6,000 4-inch lateral for 5 homes @ 1 25 LF $50 $6,250 25 feet each Slurry Seal 16,500 sf 0.36 $5,940 Construction Subtotal $51,370 Contingency 0 0 Total Construction Cost $51,370 Private Engineering Survey and Design 1 lump sum $4,000 Material Testing 1 lump sum 811 Other Agency Fees 1 lump sum 2,284 Engineering Design 1 lump sum 0 Contingency Total Private Engineering $7,095 Cost District Services Plan Review 1 lump sum 800 Construction Inspection 1 lump sum 2,150 Administrative Charges 1 lump sum 1.500 Total District Costs 4.450 PROJECT COST SUBTOTAL (CONSTRUCTION + $62,915 PRIV A TE ENGINEERING + DISTRICT) RESERVE FUND - 5% OF CONSTRUCTION COST 3,085 TOTAL PROJECT COST $66,000 6/28/01 U:\CAD\Forest Lane\Forestlane5405. wpd Page 3 of 6 EXHIBIT C FOREST LANE CONTRACTUAL ASSESSMENT DISTRICT C.A.D. NO. 99-1 FINAL ASSESSMENT ROLL June 18, 2001 T AX ROLL ASSESSMENT AMOUNT ASSESSMENT PARCEL (10-YR EQUAL PREPAID NUMBER DESCRIPTION PA YMENTSH 1) AMOUNT(2) 1 201-082-002 $1,729.30 $12,583 2 201-082-003 $1,729.30 $12,583 3 201-082-004 $1,729.30 $12,583 4 201-082-006 $1,729.30 $12,583 5 201-082-007 $1,729.30 $12,583 (1) Interest rate for annual assessments is 6.48%. (2) Does not include reserve fund. 6/28/01 U:\CAD\Forest Lane\Forestlane5405.wpd Page 4 of 6 EXHIBIT D RESOLUTION NO. 2001- RESOLUTION CONFIRMING FINAL ASSESSMENTS AND AUTHORIZING RECORDING FOREST LANE CONTRACTUAL ASSESSMENT DISTRICT NO. 99-1 The Board of Directors of the Central Contra Costa Sanitary District resolves: This Board has taken a series of actions preliminary to establishing final assessments for the Forest Lane Contractual Assessment District No. 99-1, Central Contra Costa Sanitary District, Contra Costa County, California, and now makes the following findings and orders: 1. The Board adopted its Resolution of Intention (Resolution No. 99-027) to order the improvement described therein under the Municipal Improvement Act of 1911, and directed Curtis W. Swanson, Principal Engineer, to prepare the report required by Section 5989.22 of the Streets and Highways Code. 2. Pursuant to Resolution No. 99-028, the Board approved 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 on the 11 th day of March 1 999, on page 24 in Book 64 of Maps of Assessment and Community Facilities Districts. The improvement is generally described as follows: Construction and installation of approximately 474 linear feet of sanitary sewer line, together with appurtenant work and facilities located along Forest Lane and Hartford Road in Alamo, California. 3. The Board established February 3, 2000, as the date for a public hearing to create the Forest Lane Contractual Assessment District No. 99-1. 4. The owners of record were provided ballots 45 days before the hearing on which owners could indicate approval of or opposition to the imposition of assessments. 5. The Board of Directors conducted a public hearing on February 3, 2000, pursuant to Section 5898.26 of the Streets and Highways Code and gave every person present an opportunity to comment on and object to the proposed Contractual Assessment Program, the improvement and the extent of the Assessment District. 6. The Board found that no written protests against the proposed improvement were made by owners representing more than one half of the area of the land to be assessed for the improvement. All of the owners of record voted to approve the imposition of assessments. 7. The Board approved the Engineer's Report and each component part of it, including each exhibit incorporated by reference in the report, one of which was a table of estimated assessments. 6/28/01 U:\CAD\Forest Lane\Forestlane5405. wpd Page 5 of 6 8. The Board found that the Engineer's Report, 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 District and in proportion to the special benefits derived by each parcel, in relationship to the entirety of the capital cost of the improvement. A draft version of the Agreement, within which the owners voluntarily and unanimously agreed to the imposition of an assessment, was attached as an exhibit to the Engineer's Report and was incorporated by reference. 9. Lastly, the Board ordered the improvement described In paragraph 2 and as detailed in the Engineer's Report. 10. The work on the improvement has been completed pursuant to a private agreement entered into by the owners, and was accepted on February 15, 2000. The final costs for the improvement have been determined; the final assessments for each property have been determined; and a Notice of Assessment will be sent to each property owner after the Board confirms the final assessments. 11. The final assessments for each property appear on the Assessment Roll. The Board hereby confirms and levies each individual final assessment as stated in the Assessment Roll. 12. Payment of all or any part of such final assessments may be made at the office of the Controller, Central Contra Costa Sanitary District, 5019 Imhoff Place, Martinez, California 94553. The deadline for receipt of such payment by the Controller is the close of business on July 31, 2001. Thereafter, unpaid assessments will be payable in yearly installments of principal and interest at 6.48 percent compounded annually over a period of ten (1 0) years. PASSED AND ADOPTED this 5th day of July, 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 of the Central Contra Costa Sanitary District, County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Aim, District Counsel 6/28/01 U:\CAD\Forest Lane\Forestlane5405.wpd Page 6 of 6 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 3.e. CONSENT CALENDAR Type of Action: CONFIRM ASSESSMENTS Subject: CONFIRM AND LEVY FINAL ASSESSMENTS FOR THE GROTHMAN LANE/ALHAMBRA WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 98-4, DISTRICT PROJECT 5426 Submitted By: Curtis W. Swanson, Division Manager Initiating Dept./Div. : Engineering/Environmental Services Division ~ C. Swanson REVIEWED AND RECOMMENDED FOR BOARD ACTION: ~ ISSUE: Work has been completed on the Grothman Lane/Alhambra Way Cont actual Assessment District No. 98-4 (CAD No. 98-4), and the final assessments can be established and levied. RECOMMENDATION: Adopt a resolution confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the office of the County Recorder for the Grothman Lane/Alhambra Way CAD No. 98-4, District Project 5426. FINANCIAL IMPACTS: This action will allow the District to be reimbursed for project costs totaling $156,890. ALTERNATIVES/CONSIDERATIONS: Not applicable. BACKGROUND: The Board of Directors ordered improvements for the Grothman Lane/Alhambra Way CAD No. 98-4 at its meeting held on March 16, 2000. The area is shown is Exhibit A. The work to install the improvements has been completed, and the final costs are known. The final costs are shown in Exhibit B. Based on these final costs, the final assessments for each property have been determined and appear as Exhibit C, Assessments Roll. For Grothman Lane properties, the assessment would be $10,867.50 (prepaid) or $1,493.54 per year (1 O-year payments). For Alhambra Way properties, the assessment would be $9,992.86 (prepaid) or $1,373.34 per year (1 O-year payments). The Board is requested to confirm and levy these final assessments and to authorize a Notice of Assessment to be recorded. A resolution has been prepared, which, if adopted, will confirm and levy assessments and authorize the recording of the Notice. This resolution is included as Exhibit D. RECOMMENDED BOARD ACTION: Adopt a resolution confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the office of the County Recorder for the Grothman Lane/Alhambra Way CAD No. 98-4, District Project 5426. 6/28/01 U :\PPr\Bertera\G rothmanAlhambra 542 6. wpd Page 1 of 8 o I 1\ ~ "f ~ ~ N , 200 FEET ! I · EXIST. CAD AREA % r--. PROPOSED CAD AREA en .., 8 .......... PLANNED CAD SEWER ,- Co o ~ ~ o <> <> ,- If> a. o E U a. If> ~ Central Contra Costa Sanitary District o GROTH MAN LANE PARTICIPANT b.. ALHAMBRA WAY PARTICIPANT + <D ALHAMBRA WAY NON-PARTlCIPANT MAP ASSESSMENT NUMBER Exhibit PROPOSED BOUNDARY & ASSESSMENT NUMBERS FOR GROTHMAN LN I ALHAMBRA WAY AREA CAD NO. 98-4 DISTRICT PROJECT NO. 5426 A !!Q a. <> o <> '" ~ ...... '" Page 2 of 8 EXHIBIT B GROTHMAN LANE/ALHAMBRA WAY CONTRACTUAL ASSESSMENT DISTRICT CAD NO. 98-4; FIFTEEN PARCELS FINAL COST REPORT - June 18, 2001 ITEM QUANTITY /UNITS UNIT COST AMOUNT Construction 8-inch sewer DIP 400 LF $70 $28,000 8-inch sewer PVC 1036 LF $60 $62,160 Standard Manhole 7 EA $2,000 $14,000 4-inch lateral for 15 homes 381 LF $50 $19,050 @ 25 feet each Paving $1 $8,000 Construction Subtotal $131,210 Contingency 0 0 Total Construction Cost $131,210 Private Enaineerina Survey and Design 1 lump sum $12,000 Easement Acquisition 1 lump sum $1,500 Material Testing 1 lump sum included Other Agency Fees 1 lump sum $4,500 Engineering Design 1 lump sum 0 Contingency Total Private Engineering Cost $18,000 District Services Plan Review 1 lump sum $2,355 Construction Inspection 1 lump sum $3,825 Administrative Charges 1 lump sum $1. 500 Total District Costs $7.680 PROJECT COST SUBTOTAL (CONSTRUCTION + $156,890 PRIVATE ENGINEERING + DISTRICT) RESERVE FUND - 5% OF CONSTRUCTION COST $7,110 TOTAL PROJECT COST $164,000 6/28/01 U :\PPr\Bertera\GrothmanAlhambra5426. wpd Page 3 of 8 EXHIBIT B (Continued) GROTHMANLANESEGMENT GROTHMAN LANE/ALHAMBRA WAY CONTRACTUAL ASSESSMENT DISTRICT CAD NO. 98-4; EIGHT PARCELS FINAL COST REPORT - June 18, 2001 ITEM QUANTITY /UNITS UNIT COST AMOUNT Construction 8-inch sewer DIP 400 LF $70 $28,000 8-inch sewer PVC 320 LF $60 $19,200 Standard Manhole 4 EA $2,000 $ 8,000 4-inch lateral for 8 homes 203 LF $50 $10,150 Overlay LS $8,000 Construction Subtotal $73,350 Contingency 0 0 Total Construction Cost $73,350 Private Enaineerina Survey and Design 1 lump sum $6,000 Easement Acquisition 1 lump sum $1 ,500 Material Testing 1 lump sum included Other Agency Fees 1 lump sum $2,250 Engineering Design 0 Contingency Total Private Engineering Cost $9,750 District Services Plan Review 1 lump sum $1, 177 Construction Inspection 1 lump sum $1,913 Administrative Charges 1 lump sum $750 Total District Costs $3.840 PROJECT COST SUBTOTAL (CONSTRUCTION + $86,940 PRIV A TE ENGINEERING + DISTRICT) RESERVE FUND - 5% OF CONSTRUCTION COST $4,060 TOTAL PROJECT COST $91,000 6/28/01 U :\PPr\Bertera\G rothmanAlhambra 542 6. wpd Page 4 of 8 EXHIBIT B (Continued) ALHAMBRA WAY SEGMENT GROTHMAN LANE/ALHAMBRA WAY CONTRACTUAL ASSESSMENT DISTRICT CAD NO. 98-4; SEVEN PARCELS FINAL COST REPORT - June 18, 2001 UNIT ITEM QUANTITY /UNITS COST AMOUNT Construction 8-inch sewer PVC 71 6 LF $60 $42,960 Standard Manhole 3 EA $2,000 $6,000 4-inch lateral for 7 homes 178 LF $50 $8,900 Construction Subtotal $57,860 Contingency 0 0 Total Construction Cost $57,860 Private Enaineerina Survey and Design 1 lump sum $6,000 Material Testing 1 lump sum included Other Agency Fees 1 lump sum $2,250 Engineering Design 1 lump sum 0 Contingency Total Private Engineering Cost $8,250 District Services Plan Review 1 lump sum $1,178 Construction Inspection 1 lump sum $1,912 Administrative Charges 1 lump sum $750 Total District Costs $3.840 PROJECT COST SUBTOTAL (CONSTRUCTION + $69,950 PRIVATE ENGINEERING + DISTRICT) RESERVE FUND - 5% OF CONSTRUCTION COST $3,050 TOTAL PROJECT COST $73,000 6/28/01 U :\PPr\Bertera\G rothmanAlham bra 542 6. wpd Page 5 of 8 EXHIBIT C GROTHMAN LANE/ALHAMBRA WAY CONTRACTUAL ASSESSMENT DISTRICT CAD NO. 98-4 FINAL ASSESSMENT ROLL TAX ROLL ASSESSMENT AMOUNT ASSESSMENT PARCEL (10-YR EQUAL PREPAID NUMBER DESCRIPTION PAYMENTS)(1 ) AMOUNT(2) 1 162-242-008 $1,493.54 $10,867.50 2 162-242-009 $1,493.54 $10,867.50 3 162-242-010 $1,493.54 $10,867.50 4 162-242-011 $1,493.54 $10,867.50 5 162-242-012 $1,493.54 $10,867.50 6 162-242-013 $1,493.54 $10,867.50 7 162-242-018 $1,493.54 $10,867.50 8 162-242-019 $1,493.54 $10,867.50 9 162-242-020 $1,373.34 $9,992.86 10 162-242-021 $1,373.34 $9,992.86 1 1 162-242-022 $1,373.34 $9,992.86 12 162-242-023 $1,373.34 $9,992.86 13 162-242-024 $1,373.34 $9,992.86 14 162-242-035 $1,373.34 $9,992.86 15 162-243-002 $1,373.34 $9,992.86 (1) Interest rate for annual assessments is 6.48 %. (2) Does not include reserve fund. 6/28/01 U :\PPr\Bertera \G rothmanAlhambra5426. wpd Page 6 of 8 EXHIBIT D RESOLUTION NO. 2001-_ RESOLUTION CONFIRMING FINAL ASSESSMENTS AND AUTHORIZING RECORDING GROTHMAN LANE/ALHAMBRA WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 98-4 The Board of Directors of the Central Contra Costa Sanitary District resolves: This Board has taken a series of actions preliminary to establishing final assessments for the Grothman Lane/Alhambra Way Contractual Assessment District No. 98-4, Central Contra Costa Sanitary District, Contra Costa County, California, and now makes the following findings and orders: 1. The Board adopted its Resolution of Intention (Resolution No. 98-153) to order the improvement described therein under the Municipal Improvement Act of 1911, and directed Curtis W. Swanson, Principal Engineer, to prepare the report required by Section 5989.22 of the Streets and Highways Code. 2. Pursuant to Resolution No. 98-154, the Board approved 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 on the 1 st day of December 1998, on page 29 in Book 63 of Maps of Assessment and Community Facilities Districts. The improvement is generally described as follows: Construction and installation of approximately 1 ,436 linear feet of sanitary sewer line, together with appurtenant work and facilities located along Grothman Lane/Alhambra Way in Martinez, California. 3. The Board established March 16, 2000 as the date for a public hearing to create the Grothman Lane/Alhambra Way Contractual Assessment District No. 98-4. 4. The owners of record were provided ballots 45 days before the hearing on which owners could indicate approval of or opposition to the imposition of assessments. 5. The Board of Directors conducted a public hearing on March 16, 2000 pursuant to Section 5898.26 of the Streets and Highways Code and gave every person present an opportunity to comment on and object to the proposed Contractual Assessment Program, the improvement and the extent of the Assessment District. 6. The Board found that no written protests against the proposed improvement were made by owners representing more than one half of the area of the land to be assessed for the improvement. All of the owners of record voted to approve the imposition of assessments. 7. The Board approved the Engineer's Report and each component part of it, including each exhibit incorporated by reference in the report, one of which was a table of estimated assessments. 6/28/01 U :\PPr\Bertera \G rothmanAlhambra 542 6. wpd Page 7 of 8 8. The Board found that the Engineer's Report, 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 District and in proportion to the special benefits derived by each parcel, in relationship to the entirety of the capital cost of the improvement. A draft version of the Agreement, within which the owners voluntarily and unanimously agreed to the imposition of an assessment, was attached as an exhibit to the Engineer's Report and was incorporated by reference. 9. Lastly, the Board ordered the improvement described In paragraph 2 and as detailed in the Engineer's Report. 10. The work on the improvement has been completed pursuant to a private agreement entered into by the owners, and was accepted on July 30, 2000. The final costs for the improvement have been determined; the final assessments for each property have been determined; and a Notice of Assessment will be sent to each property owner after the Board confirms the final assessments. 11. The final assessments for each property appear on the Assessment Roll. The Board hereby confirms and levies each individual final assessment as stated in the Assessment Roll. 12. Payment of all or any part of such final assessments may be made at the office of the Controller, Central Contra Costa Sanitary District, 5019 Imhoff Place, Martinez, California 94553. The deadline for receipt of such payment by the Controller is the close of business on July 31,2001. Thereafter, unpaid assessments will be payable in yearly installments of principal and interest at 6.48 percent compounded annually over a period of ten (1 0) years. PASSED AND ADOPTED this 5th day of July, 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 of the Central Contra Costa Sanitary District, County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Aim, District Counsel 6/28/01 U :\PPr\Bertera\G rothmanAlhambra 5426. wpd Page 8 of 8 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 3.d. CONSENT CALENDAR Type of Action: CONFIRM ASSESSMENTS Subject: CONFIRM AND LEVY FINAL ASSESSMENTS FOR THE MUIR LANE CONTRACTUAL ASSESSMENT DISTRICT NO. 99-2, DISTRICT PROJECT 5442 Submitted By: Curtis W. Swanson, Division Manager Initiating Dept./Div. : Engineering/Environmental Services Division REVIEWED AND RECOMMENDED FOR BOARD ACTION: '" ~':n'oc 0DcK A. Farrell ISSUE: Work has been completed on the Muir Lane Contractual Assessment Distric 99-2 (CAD No. 99-2), and the final assessments can be established and levied. RECOMMENDATION: Adopt a resolution confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the office of the County Recorder for the Muir Lane CAD No. 99-2, District Project 5442. FINANCIAL IMPACTS: This action will allow the District to be reimbursed for project costs totaling $146,129. AL TERNA TIVES/CONSIDERA TIONS: Not applicable. BACKGROUND: The Board of Directors ordered improvements for the Muir Lane CAD No. 99-2 at its meeting held on April 6, 2000. The area is shown in Exhibit A. The work to install the improvements has been completed, and the final costs are known. The final costs are shown in Exhibit B. Based on these final costs, the final assessments for each property have been determined and appear as Exhibit C, Assessment Roll. The assessment for most of the CAD properties would be $13,130 (prepaid) or $1,832.66 per year (1 0- year payments). The Board is requested to confirm and levy these final assessments and to authorize a Notice of Assessment to be recorded. A resolution has been prepared, which, if adopted, will confirm and levy assessments and authorize the recording of the Notice. This resolution is included as Exhibit D. RECOMMENDED BOARD ACTION: Adopt a resolution confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the office of the County Recorder for the Muir Lane CAD No. 99-2, District Project 5442. 6/28/01 U: \PPr\Bertera \Muirlane5442. wpd Page 1 of 7 c: ) l LOCATION MAP N.T.S. I PROPOSED CAD AREA EXISTING SEWER ~ c: ~ E '" c.. o ~ = o <> <> '" en o E U c.. en ~ Central Contra Costa Sanitary District o . 80 160 , ........... PLANNED CAD SEWER '1' ASSESSMENT \V NUMBER * PARTICIPANT b.. NON-PARTICIPANT FEET <D . 00 <> o <> '" ~ .;., '" PROPOSED BOUNDARY & ASSESSMENT NUMBERS FOR MUIR LANE CAD NO. 99-2 DISTRICT PROJECT NO. 5442 Exhibit A Page 2 of 7 EXHIBIT B MUIR LANE CONTRACTUAL ASSESSMENT DISTRICT CAD NO. 99-2; TWELVE PARCELS FINAL COST REPORT - JUNE 18, 2001 ITEM QUANTITY /UNITS UNIT COST AMOUNT Construction 8-inch sewer - Camille 460 LF $69 $ 31 ,740 8-inch sewer - Muir 800 LF $49 $39,200 Standard Manhole 6 EA $2,400 $14,400 4-inch lateral for 13 homes 1 LF $1 ,000 $13,000 @ 20 feet each Paving - Muir Lane LS $25,205 Slurry Seal 10,582 0.47 $4,974 Construction Subtotal $128,519 Contingency 0 0 Total Construction Cost $128,519 Private Enaineerina Survey and Design 1 lump sum $7,210 Material Testing 1 lump sum $1,805 Other Agency Fees 1 lump sum $1515 Engineering Design 1 lump sum 0 Contingency Total Private Engineering Cost $10,530 District Services Plan Review 1 lump sum $2,067 Construction Inspection 1 lump sum $3,513 Administrative Charges 1 lump sum $1.500 Total District Costs $7.080 PROJECT COST SUBTOTAL (CONSTRUCTION + $146,129 PRIV A TE ENGINEERING + DISTRICT) RESERVE FUND - 5% OF CONSTRUCTION COST $6,871 TOTAL PROJECT COST $153,000 6/28/01 U: \PPr\Bertera\Muirlane 5442. wpd Page 3 of 7 EXHIBIT C MUIR LANE CONTRACTUAL ASSESSMENT DISTRICT CAD NO. 99-2 FINAL ASSESSMENT ROLL TAX ROLL ASSESSMENT AMOUNT ASSESSMENT PARCEL (10-YR EQUAL PREPAID NUMBER DESCRIPTION PAYMENTS) (1) AMOUNT (2) 1 1 98-1 60-030 $1,832.66 $13,130 2 1 98-1 60-029 $1,832.66 $13,130 3 198-160-027 $1,832.66 $13,130 4 198-160-025 $1,832.66 $13,130 5 198-1 60-024 $1,832.66 $13,130 6 1 98-1 60-023 $1,832.66 $13,130 7 1 98-1 60-022 $1,832.66 $13,130 8 1 98-1 60-021 $1,832.66 $13,130 9 198-160-020 $1,832.66 $13,130 10 198-160-017 $237.28 $1,700(3) 1 1 198-106-026 $1,832.66 $13,130 12 198-160-018 $1,832.66 $13,130 (1) Interest rate for annual assessments is 6.82%. (2) Does not include reserve fund. (3) By agreement amongst the project participants, Assessment Parcel No. 10 will pay a lump sum of $1,700 of the project cost. 6/28/01 U :\PPr\Bertera\Muirlane5442. wpd Page 4 of 7 EXHIBIT 0 RESOLUTION NO. 2001- RESOLUTION CONFIRMING FINAL ASSESSMENTS AND AUTHORIZING RECORDING MUIR LANE CONTRACTUAL ASSESSMENT DISTRICT NO. 99-2 The Board of Directors of the Central Contra Costa Sanitary District resolves: This Board has taken a series of actions preliminary to establishing final assessments for the Muir Lane Contractual Assessment District No. 99-2, Central Contra Costa Sanitary District, Contra Costa County, California, and now makes the following findings and orders: 1. The Board adopted its Resolution of Intention (Resolution No. 99-115) to order the improvement described therein under the Municipal Improvement Act of 1911, and directed Curtis W. Swanson, Principal Engineer, to prepare the report required by Section 5989.22 of the Streets and Highways Code. 2. Pursuant to Resolution No. 99-116, the Board approved 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 on the 24th day of January, 2001, on page 19 in Book 68 of Maps of Assessment and Community Facilities Districts. The improvement is generally described as follows: Construction and installation of approximately 1,260 linear feet of sanitary sewer line, together with appurtenant work and facilities located along Muir Lane and Camille Avenue in Alamo, California. 3. The Board established April 6, 2000, as the date for a public hearing to create the Muir Lane Contractual Assessment District No. 99-2. 4. The owners of record were provided ballots 45 days before the hearing on which owners could indicate approval of or opposition to the imposition of assessments. 5. The Board of Directors conducted a public hearing on April 6, 2000, pursuant to Section 5898.26 of the Streets and Highways Code and gave every person present an opportunity to comment on and object to the proposed Contractual Assessment Program, the improvement and the extent of the Assessment District. 6/28/01 U :\PPr\Bertera\Muirlane 5442. wpd Page 5 of 7 6. The Board found that no written protests against the proposed improvement were made by owners representing more than one half of the area of the land to be assessed for the improvement. All of the owners of record voted to approve the imposition of assessments. 7. The Board approved the Engineer's Report and each component part of it, including each exhibit incorporated by reference in the report, one of which was a table of estimated assessments. 8. The Board found that the Engineer's Report, 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 District and in proportion to the special benefits derived by each parcel, in relationship to the entirety of the capital cost of the improvement. A draft version of the Agreement, within which the owners voluntarily and unanimously agreed to the imposition of an assessment, was attached as an exhibit to the Engineer's Report and was incorporated by reference. 9. Lastly, the Board ordered the improvement described in paragraph 2 and as detailed in the Engineer's Report. 10. The work on the improvement has been completed pursuant to a private agreement entered into by the owners, and was accepted on June 22, 2001. The final costs for the improvement have been determined; the final assessments for each property have been determined; and a Notice of Assessment will be sent to each property owner after the Board confirms the final assessments. 11. The final assessments for each property appear on the Assessment Roll. The Board hereby confirms and levies each individual final assessment as stated in the Assessment Roll. 12. Payment of all or any part of such final assessments may be made at the office of the Controller, Central Contra Costa Sanitary District, 5019 Imhoff Place, Martinez, California 94553. The deadline for receipt of such payment by the Controller is the close of business on July 31, 2001 Thereafter, unpaid assessments will be payable in yearly installments of principal and interest at 6.82 percent compounded annually over a period of ten (1 0) years. 6/28/01 U :\PPr\Bertera\Muirlane 5442. wpd Page 6 of 7 PASSED AND ADOPTED this 5th day of July, 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 of the Central Contra Costa Sanitary District, County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Aim, District Counsel 6/28/01 U :\PPr\Bertera\Muirlane5442. wpd Page 7 of 7 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 3.e. CONSENT CALENDAR Type of Action: ESTABLISH HEARING DATE Subject: ESTABLISH JULY 19, 2001, AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON THE DRAFT FISCAL YEARS (FY) 2001-02/2002-03 CAPITAL IMPROVEMENT BUDGET/2001 CAPITAL IMPROVEMENT PLAN IISAN RAMON ADDENDUM." Submitted By: John J. Mercurio, Management Analyst REVIEWED AND RECOMMENDED FOR BOARD ACTION: Initiating Dept./Div. : Engineering/Environmental Services Division J. Mercurio R. Schmidt ~:c ~-~ ISSUE: The District's draft Fiscal Years 2001-02/2002-03 Capital Improve Budget/2001 Ten-Year Capital Improvement Plan (CIB/CIP) has been approved adopted by the Board. Because of changed conditions related to San Ramon Dougherty Valley , several capital projects are being accelerated and modified. An addendum to the CIB/CIP is required. A date for a public hearing to receive comments on the addendum document should be established. RECOMMENDATION: Establish July 19, 2001, as the date for a public hearing to receive comments on the draft IISan Ramon Addendum." FINANCIAL IMPACTS: None related to this action. AL TERNA TIVES/CONSIDERA TIONS: Not applicable. BACKGROUND: Shortly after the Board approved the FY 2001-02/2002-03 CIB on May 24, 2001, a settlement was reached with the City of San Ramon which allowed several projects related to Dougherty Valley development to proceed. Revised project information called the IISan Ramon Addendum" will allow new schedules and cost estimates to be incorporated into the CIB document. On May 24, 2001, the Board of Directors approved the draft Capital Improvement Budget/Capital Improvement Plan. On June 21, 2001, the CIB/CIP was adopted as part of the District Budget. The San Ramon addendum will incorporate the revised project information into the adopted CIB/CIP. 6/27/01 U: \PPR\S M\PU BLI C H EARCI BADDEN. WPD Page 1 of 2 POSITION PAPER Board Meeting Date: July 5, 2001 Subject: ESTABLISH JULY 19, 2001, AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON THE DRAFT FISCAL YEARS (FY) 2001-02/2002-03 CAPITAL IMPROVEMENT BUDGET/2001 CAPITAL IMPROVEMENT PLAN "SAN RAMON ADDENDUM. " It is appropriate to receive comments in a formal public hearing prior to consideration of the "San Ramon Addendum" for approval. This public hearing has been tentatively scheduled for the Board's regular meeting on July 19, 2001. A staff presentation will be made at that time RECOMMENDED BOARD ACTION: Establish July 19, 2001, as the date for a public hearing to receive comments on the draft "San Ramon Addendum." 6/27/01 U: \PPR\SM\PU BLI CH EARC I BAD D EN. WPD Page 2 of 2 Central Contra Costa S~.litary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 3.f. CONSENT CALENDAR TyP6 of Action: CONFIRM PUBLICATION Subject: ADOPT A RESOLUTION CONFIRMING PUBLICATION OF DISTRICT ORDINANCE NO. 217 RETITLING AND AMENDING CHAPTER 6.12 OF THE DISTRICT CODE AND ADOPTING A SCHEDULE OF CAPACITY FEES, RATES AND CHARGES Submitted By: Joyce E. Murphy Secretary of the District REVIEWED AND RECOMMENDED FOR BOARD ACTION: Initiating Dept./Div. : Administrative Department ~ ISSUE: Section 6490 of the Health and Safety Code of the State of California provides that District ordinances shall be published once in a newspaper of general circulation within the District, and provides that an Order of the Board of Directors of the District to the effect that the ordinance has been published shall constitute conclusive evidence that publication has been properly made. RECOMMENDATION: Adopt a resolution confirming the publication of District Ordinance No. 21 7. FINANCIAL IMPACTS: None related to this issue. AL TERNATIVES/CONSIDERATIONS: Establishes presumption that the ordinance was correctly published and therefore would be deemed procedurally valid by a court. BACKGROUND: District Ordinance No. 217 which was adopted by the Board at the meeting of May 24, 2001, and which retitles and amends Chapter 6.12 of the District Code and adopts a Schedule of Capacity Fees, Rates and Charges, was published in the Contra Costa Times on June 1, 2001. Proof of publication is attached. RECOMMENDED BOARD ACTION: Adopt a resolution confirming the publication of District Ordinance No. 217. 6/19/01 S:\ADMIN\MURPHY\Resolutions\POSITION PAPER.CONF PUB.wpd Page 1 of 3 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA County of Contra Costa I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above-entitled matter. I am the Principal Legal Clerk of the Contra Costa Times, a newspaper of general circulation, printed and published at 2640 Shadelands Drive in the City of Walnut Creek, County of Contra Costa, 94598. And which newspaper has been adjudged a newspaper of general circulation by the Superior Court of the County of Contra Costa, State of California, under the date of October 22, 1934. Case Number 19764. The notice, of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: June 1 all in the year of 2001 I certify (or declare) under penalty of pe~ury that the foregoing is true and correct. Contra Costa Times PO Box 4147 Walnut Creek, CA 94596 (925) 935-2525 Proof of Publication of: (attached is a copy of the legal advertisement that published) ORDINANCE NO. 2171 AN ORDINANCE OF lliE CENTRAL CONTRA ; COSTA SANITARY . DISTRICT TO RETIT\.E AND AMEND CHAPTER 6.12 OF lliE DISTRICT CODE AND ADoPT A SCHEDULE OF RAfeAf~S1:~~ES WHEREASbe substantlai study has en conducted regafdlng the Impacts 01 ~~~~e~th~tu~e ~~~&gf.; service area on exlstlllll District serllices and faeUr- ties, along with an analysis g:m~e~ '~fs[~rd'fa~1I3:; and serllices required Of appropriate to serve new users and current users ~~n~~e ~~I~~~~~~ h~~ti:1 ~~ ~ed r:I~~~ ship between the added burden Imposed by such new users and current us- ers who change the use 01 their connected buildings gr ~ti::li~~~Jh~~re~ District services and faclll. ties occasioned by this added burden; and WHEREAS, these studiee were undertaken by the District staff and culminat. ed in documents that are part of the public record, to wit: the "Fiscal Years 1999-2000 and 2000-2001 Capital I~ment Bud- get & 1999 Capital 1m p,rovement Plan", the ~~~I1lj:;~I~en~I~~ and Policy WOrkshop,Jam> ary 2~ 2001," and the "Staff Hepar! on Proposed ~~\o/ ~~~~~ ~~ 2001; and WHEREAS, it Is reasonable and nece5l!BlY that all us- ers of the Dlsb1ct's waste- water and household haz. ardous waste collection, treatment, recycling, reuse and disposal servICes anc facilities, including thOSE tem~rary users served un- der Special Discharge Per. mlts, contribute their ap- propriate portion of thE funding for such Dlstricl serllices and facilities; and WHEREAS, a public meel ings for District steff to In fonnally discuss the I1ro ~~~ ~c,acl~tere%t: customers were held or NJril 24 and May 1, 2001 , il the District Board of Dirac tors Meeting Room: and WHEREASl a properly no ticed . pu!) ic heMng re gardlng the proposea Ca ~%ns ::sehel~~ 10, 2001, and proper notici was also given of the awl ability of the documen1l note<! above for public In Spl39t1on and review prior b said public hearing; 8nd WHEREAS, amendment G Chapter 6.12 of the Distric Code Is required to provld the enabling authcirity to the District to Implemer Ithe proposed Capacity FBi Program; NOW THEREFORE, th Board of Directors of th Central Contra Costa San ~~~trlct does ordain a Section -; . t""':) .;, ....., Chapter 6.12 of the District Code Is hereb~ retitied ~~cJ.%e~~d ~~; forth In full In Exhibit "A" to this Ordinance, which ex- ~b:'I~=~~ncg,Ts":~ ence. .Sectlon 2. This Ordinance shall be a B1s~~ ....~~~n~f~~~ lished once In the Contra Costa limes, a newspaper of general circulation Within the District, and shall be ef- fective upon the eighth day ~~~~~~Ubllcation. Effective as of July 9. 2001, Capacitv Fees shall be charged in accordance with the amended prov!- ~~c~f~~ ~e\ 1.,oJt,~ Exhibit "A" to this Ordi- nance, and said fees shall be at such rates for such ~le'1g~~s i~f ~:rs s~36~ 6.12.090 Schedule of Ca- Bf,~~e:e~s'sa~atbk= 6.12. r~~~NgA~16'g ~ the Central Contra Costa Sanitary District on the 24th ~~f M:tt'e~()(I1, by the AYES:~embers: Boneysteele, Lucey, Mene- slni,.Il1eledly, Hockett NO"S: Members , None . ABSENT: Members None A li"resld;nt of the Board of Directors Central Contra Coste Sanl- t;vy District CoiJnty of Contra Costa, State of California ~"?l'e EOt~rpB~t central~tra Costa Sani- t;vy District ~~~f ~~i~ Costa, I, APPROVED as to form: /si- II Counsel for the District SUMMARY OF EXHIBrT"AIt ! ~~W~ I PROGRAM OF THE I DISTRICT CODE I ~~t:~'~rt~ .::~,~~ I ~ed=i~~a~h ~~ user, by payment of a Ca- fn~g~r ~~':~O~~f :'I:~i1t Ing or facllitv on thalr prop- eny to the District's sewer ~~mc":'ti~~~~~~ ~=nf ~aJ~: ~~~: :rr:ntlnof 3:e~~:ti~ u~ District assets. The com- ~ete text of Chapter 6.12 a~~~ t-ee ~~r:r~: office of the District Secre- tary. 5019 Imhoff Place, Martinez, California 94553. The folloWIng Is a summary ~~t"'prOved code pro- 11 The tenn, "Qape,clty Fees" is used, rather than the current tenn, "capital impr'9\lement fees," to be consistent with Govern- ment Code language con- cerning fees !of equarozing investment In current as- sets as between current and new users. 2) A number of new "find- Ings are Included In Section 6.12.010 to document the substantive reasons for the Board to estebllsh the Ca- pacltv Fee Program and the Board's lnae~ndent ! ~~i"rJ:;~mth1s e=~ .& from the California Environ- mental Quality Act (CEQA). 3h Each section of the ae~~BJd~~~cI~e~ll~ ~f~ fb~e a~~~~~~ an~ the program, including: - New definitions for "busi- ness owner" and "parcel owner" - Describing the appropri- ate use of Capacity Fee revenues. - Adding the requirement that a seplilrBte IMng space be phySically separable from the primary residence to be cor\sk:lerea and "ad- ditional unit." - Specifyll1g how ClipacllX Fees for "shall buildingS, that is, buildings with fin- Ishad exteriors and unfin- Ished Interiors, will be cal- culated. - Allo\l\o;ng a customer to Initially P!ly conventional Capacity Fees and receive a connection pannlt while a "special stuc:ty" is conduct- ed by staff to ver1fy the ap- prqpi1ate final fee. - Adding fonnulas for the Capacity Use Charije Rate and Current Year Capacity Use ~e for businesses eligible for payment of Ca- pacity Fees Oller a 15 year oerlod under the Capacity Use Charge Program. - Adding User Groups: EF- Large FitnesS/Athletic Clu5s, and LA-Residence ~t~~l~m ~~~~oc~ capacity fee RUE factors for each zone (gravity and pumping). 41 A revised Schedule of Capaclty Fees, Rates and Charges to be effective on July 9, 2001, is adopted in- creasIng the Gravity Zone Fee to $3 360 per Residen- tial Unit Equivalent ("RUE), and the PumP!ld Zone Fee to $4,070 per RUE. Leaal CCT 2215 Puollsh June 1. 2001 Page 2 of 3 RESOLUTION NO. 2001- RESOLUTION CONFIRMING PUBLICATION OF DISTRICT ORDINANCE NO. 217 RETITLING AND AMENDING CHAPTER 6.12 OF THE DISTRICT CODE AND ADOPTING A SCHEDULE OF CAPACITY FEES, RATES AND CHARGES WHEREAS, Section 6490 of the Health and Safety Code of the State of California provides that District ordinances shall be published once in a newspaper of general circulation within the District, and provides that an Order of the Board of Directors of the District to the effect that the Ordinance has been published shall constitute conclusive evidence that publication has been properly made. NOW, THEREFORE, be it resolved by the Board of Directors of the Central Contra Costa Sanitary District as follows: THAT District Ordinance No. 217 which was adopted on May 24, 2001, and which retitles and amends Chapter 6.12 of the District Code and adopts a Schedule of Capacity Fees, Rates and Charges, has been properly published once since its adoption in a newspaper of general circulation within Contra Costa County. PASSED AND ADOPTED by the Central Contra Costa Sanitary District Board of Directors this 5th day of July, 2001 by the following vote: 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 of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: Kenton l. Aim District Counsel Page 3 of 3 S:\ADMIN\MURPHY\Resolutions\CONF .PUB. wpd PUBLIC HEARING TO RECEIVE COMMENTS ON ENTRADA VERDE CONTRACTUAL ASSESSMENT DISTRICT NO. 2001-1 SUGGESTED AGENDA JULY 5, 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\Entrada Verde\hearin -1 .wpd Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 4.a. HEARINGS Type of Action: CONDUCT PUBLIC HEARING 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 ENTRADA VERDE PARCEL OWNERS IN CONJUNCTION WITH THE ENTRADA VERDE CONTRACTUAL ASSESSMENT DISTRICT NO. 2001-1. Submitted By: Curtis Swanson, Division Manager Initiating Dept ./Div. : Engineering/Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: C. Swanson ~ ~~ ISSUE: A public hearing must be conducted to consider objections and inquiries re rding the proposed assessment, the Resolution of Intention, the Engineer's Report, annexation, and any other comments regarding Entrada Verde Contractual Assessment District No. 2001-1 (CAD No. 2001-1), RECOMMENDATION: Conduct the public hearing and consider approval of Entrada Verde CAD 2001-1. FINANCIAL IMPACTS: The estimated total project cost is $231,445. The District has authorized $1,000,000 for CADs in 2001-02. This would be the first CAD to be approved in 2001-2002. There is $768,555 available for other CADs. AL TERNA TIVES/CONSIDERA TIONS: 1 . Continue the public hearing to receive additional public comment or allow additional deliberation. 2. Withhold or delay approval of the project. BACKGROUND: A group of 22 parcel owners on Entrada Verde in Alamo 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 Entrada Verde 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 February 15, 2001. The proposed sewer includes approximately 1,200 linear feet of 8-inch sewer main, one trunk manhole and four standard manholes that will serve the 6/25/01 U: \CAD\Entrada Verde \PubHear. PP. wpd Page 1 of 1 2 POSITION PAPER Board Meeting Date: July 5, 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 ENTRADA VERDE PARCEL OWNERS IN CONJUNCTION WITH THE ENTRADA VERDE CONTRACTUAL ASSESSMENT DISTRICT NO. 2001-1. proponents' 22 existing properties, 21 of which have existing homes presently relying on septic tanks. One property is a vacant lot. A map showing the proposed boundary and the proposed sewer location is presented as Attachment A. On February 15, 2001, the Board of Directors adopted a resolution directing the preparation of a report for a Contractual Assessment District known as Entrada Verde CAD No. 2001-1. A report has been prepared, and assessments have been estimated. (The Engineer's Report is being provided to the Board under separate coveL) On May 10, the Board of Directors set a public hearing for June 21, 2001. The public hearing was continued to July 5, 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 Entrada Verda CAD No. 2001-1, 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. 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). 6/25/01 U :\CAD\Entrada V erde\PubHear. PP. wpd Page 2 of 1 2 POSITION PAPER Board Meeting Date: July 5, 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 ENTRADA VERDE PARCEL OWNERS IN CONJUNCTION WITH THE ENTRADA VERDE CONTRACTUAL ASSESSMENT DISTRICT NO. 2001-1. 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; · place assessments on owners' tax bills; . record as liens on the participants' properties the obligation of each participant to pay assessments; and 6/25/01 U:\CAD\EntradaVerde\PubHear.PP.wpd Page 3 of 12 POSITION PAPER Board Meeting Date: July 5, 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 ENTRADA VERDE PARCEL OWNERS IN CONJUNCTION WITH THE ENTRADA VERDE CONTRACTUAL ASSESSMENT DISTRICT NO. 2001-1. · 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 22 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 Entrada Verde CAD No. 2001-1 is $ 231 ,445. A summary of project costs is shown in Exhibit E. Funding for the CAD Program is included in the 2000- 01-02 Capital Improvement Budget (CIB). The District has authorized $1,000,000 for CAD projects during Fiscal Year 2001-02. This is the first CAD to be considered for approval in 2001-02. If approved, there is $768,555 available for other CADs. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) 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. 6/25/01 U :\CAD\EntradaVerde\PubHear. PP. wpd Page 4 of 1 2 POSITION PAPER Board Meeting Date: July 5, 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 ENTRADA VERDE PARCEL OWNERS IN CONJUNCTION WITH THE ENTRADA VERDE CONTRACTUAL ASSESSMENT DISTRICT NO. 2001-1. . 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 Entrade Verde owners. 6/25/01 U: \CAD\Entrada V erde\PubHear. PP. wpd Page 5 of 1 2 /' /' /' ./' //' /' /' ./' // /'/' /.{~~/'/' /;;/ /.<:lv'V~ // /~.% roro~ /:;/ /' / /' // // // // // // / \ \ \ \ - ~- -- \ '-' / I c: '" ." .8 "0 .... '" '" '" ..- c: <l> E -5 2 "0 ..- .... '" '" '" -;;; i:;' "0 u ..- .:,;, ~~ ~ o I 100 FEET I I POTENTIAL CAD AREA LOCATION MAP 200 ....... ........ EXISTING 111111111111 PLANNED * LIKELY SEWER CAD SEWER PARTICIPANTS + LIKELY NON- PARTICIPANT APPROVED CAD 2000-1 Central Contra Costa Sanitary District '" .... co o 5 o ("'oJ Z ::> .., .;., ("'oJ Attachment PROPOSED BOUNDARY OF ENTRADA VERDE CAD NO. 2001-1 DISTRICT PROJECT NO. 5534 A Page 6 of 1 2 RESOLUTION NO. EXHIBIT B RESOLUTION OVERRULING PROTESTS ENTRADA VERDE CONTRACTUAL ASSESSMENT DISTRICT NO. 2001-1 The Board of Directors of the Central Contra Costa Sanitary District resolves: On July 5, 2001, the Board of Directors held a public hearing on the Resolution of Intention and the Engineer's Report on the proposed improvement in Entrada Verde Contractual Assessment District No. 2001-1. 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 5th day of July, 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 6/25/01 U :\CAD\EntradaVerde\PubHear .PP. wpd Page 7 of 1 2 EXHIBIT C RESOLUTION NO. RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4 ENTRADA VERDE CONTRACTUAL ASSESSMENT DISTRICT NO. 2001-1 The Board of Directors of the Central Contra Costa Sanitary District resolves: 1. The Board set 2 p.m. on July 5, 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 5th day of July, 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 6/25/01 U :\CAD\EntradaVerde\PubHear .PP. wpd Page 8 of 1 2 EXHIBIT D RESOLUTION NO. RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT ENTRADA VERDE CONTRACTUAL ASSESSMENT DISTRICT NO. 2001-1 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 Entrada Verde Contractual Assessment District No. 2001-1, 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 1,220 linear feet of sanitary sewer line, together with appurtenant work and facilities located at Entrada Verde in Alamo, California. 3. The Board called a hearing of protests on the Entrada Verde Contractual Assessment District No. 2001-1. 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. 6/25/01 U :\CAD\Entrada V erde\PubHear. PP. wpd 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 Date 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 2/15/01 2/15/01 3/1/01 6/11/01 6/12/01 Pending 2001-036 2001-037 Filed Filed 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 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). 6/25/01 U :\CAD\EntradaVerde\PubHear. PP. wpd Page 10 of 1 2 PASSED AND ADOPTED this 5th day of June, 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, Central Contra Costa Sanitary District, County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Aim, District Counsel 6/25/01 U :\CAD\Entrada V erde\PubHear. PP. wpd Page 11 of 1 2 SUMMARY OF PROJECT COSTS ENTRADA VERDE CAD NO. 2001-1 Construction Engineering District Services TOTAL 6/25/01 U :\CAD\EntradaVerde\PubHear. PP. wpd $215,500 9,000 6,945 $231,445 EXHIBIT E Page 1 2 of 1 2 e 0> '" -' o 8 <> '" '" 3 i E ::: Of .. .. o <> <> ,.,. .. Q. o ji U Q. .. ,.,. :.< - --- ,/ / / -_/ / // - /'~~/' // / ~<-<r;~/ /:// ,,~,'..~ / / /' c..'O~ / /' /' ,,-/ / // // // /'",/ // ,-/ ~/ MAP o , 100 200 I FEET APPROVED CAD 2000-1 EXISTING SEWER """"""" PLANNED * LIKELY CAD SEWER PARTICIPANTS CD ASSESSMENT + LIKELY NON- NUMBER PARTICIPANT ......11 ........ I t POTENTIAL CAD AREA Central Contra Costa Sanitary District Attachment PROPOSED BOUNDARY OF ENTRADA VERDE CAD NO. 2001-1 DISTRICT PROJECT NO. 5534 F lX) <> 52 8 '" ~ ::" 0> '" Entrada Verde CAD 2001-1 Alamo . 23 properties; 22 participants . 22 developed parcels; 1 undeveloped parcel . Meets current CAD Program criteria . 1 ,220 feet of sewer; 5 manholes . Project Cost - $231,445 . Participant cost 22 Participants $10,520 upfront or $ 1,465/year 1 9 Participants $11 ,234 upfront or $ 1,564/year _ ^ _ _,."_..~_>_,...__._..__. ~..__ ,. . "_ . ___"_"_"_.""_"'_"___'__"'_"'~"'''''''_''~__'''_'_.__.________.____._..----.--.__ ._~~_._'.___m.__....._._..__.~___ HEARING TO DETERMINATE RESPONSIVENESS OF MOUNTAIN CASCADE'S BID ON THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT (DP 5902) SUGGESTED AGENDA July 5, 2001 1 . Request Staff Report Staff report will be made by Curt Swanson, Envir. Sers. Div. Mgr. and Program Manager for the design of the D.V. Tunnel and Trunk Sewer Project * Describe project and nature of work * Outline bid procedure and accepted bids * Describe protest and nature of protest * Review submitted bid documents from parties * Review staff analysis and procedure * Note saving in lowest responsible bid of $1 million * Outline decision that Board may make 2. Review of Hearing format and rules by Board President * Each presenter will introduce his/her self and any other party present for the Hearing * Each party will be limited to approximately 15 minutes in their presentation * Each party will make their presentation uninterrupted, and without questions from any other party * Each party will have 5 minutes for closing comments and rebuttal at the end of the comment period * District staff and Counsel will make final comments 3. Hearing A. Open Hearing. B. Receive comments: (1) Affholder, Inc. (Protester and apparent 2nd low bidder). Outline of protest and why bid should be awarded to the 2nd bidder as the lowest responsive bidder (2) Mountain Cascade, Inc. (Apparent low bidder). Why they, as the low bidder, should be considered responsive (3) Staff analysis and recommendation Staff comments will be made by Curt Swanson - * Analysis of staff research into issues * Interpretation of bid documents and requirements of future submittals * Analysis of experience * Discussion of experience by Dave Young of Woodward Clyde/ URS Legal comment by District Counsel, Kent Aim on legal basis for Board decision process (4) Closing comments and rebuttal by Affholder, Mountain Cascade, and staff. District Counsel to outline basic issues for Board consideration C. Close Hearing D. Board may request to enter into "Closed Session" if there is threat of litigation or appeal in court 4. Discussion General Manager to open discussion of issues Time limit of project with Settlement Agreement Difficult issue for Board Experience is just one factor Board should consider The intent of the bid process is to level the playing field The specifications for the tunneling advantaged neither party, review of the bids indicates the same tunneling costs The Board must also consider the lowest bidder if responsive, not the most responsive bidder The award of any contract is contingent upon the financial agreement between the District and the developers 5. Board decision of responsiveness 6. Return to regular Agenda to consider Award of Contract. Central Contra Costa Sanitary District 5019 Imhoff Place, Martinez, Ca 94553 (925) 228-9500 . www.centralsan.org FAX: (925) 228-4624 CHARLES IV BATTS General Manager KENTON L. ALM Counsel for the District (925) 938-1430 July 2, 2001 JOYCE E. MURPHY Secretary of the District Board of Directors Contra Costa Centra Sanitary District 5019 Imhoff Place Martinez, CA 94553 Dear Board Members: As you are aware from reading your Board books, there is a bid protest on the Dougherty Valley Tunnel and Trunk Sewer, Project No. 5902. The low bidder was Mountain Cascade, Inc.. The second low bidder, Affholder, Inc. is questioning the responsiveness of Mountain Cascade and has submitted a protest. The position paper in your Board book explains some of the background. Staff requested documentation from both Mountain Cascade, Inc. and Affholder, Inc. to allow us to evaluate the merits of the protest. This information is included herein for your review. Staff is continuing their review of the material and will be forwarding a staff recommendation under separate cover. Due to the critical nature of the schedule on this project, we must keep this matter on the July 5, 2001 agenda. This is necessitating getting you information in several packages. We apologize for this inconvenience and will be providing a detailed staff presentation on July 5th to answer any questions you may have. Very truly yours, Ann E. Farrell Director of Engineering AF/jb U :\Admin\Dougherty200 1 \DVletter. wpd {1} Recycled Paper McKenna & Cuneo, L1.P. Washington, D.C. Attorneys at Law Denver San Diego 444 South Flower Street . Los Angeles, CA 90071-2901 213-688-1000 . Fax: 213-243-6330 www.mckennacuneo.com Philadelphia San Francisco Brussels June 28, 2001 Richard B. Oliver 213-243-6169 richard_oliver@mckennacuneo.com District Board Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94533 Attn: Mr. Henry Thom Project Manager Re: Dougherty Valley Tunnel and Trunk Sewer Project (DP 5902); Bid Protest of Affho Ide r, Inc. - Board Presentation 7/5/01 Dear Mr. Thom: On behalf of Affholder, Inc. ('~ffholder'? we submit the following comments concerning the above-referenced protest in response to your June 22, 2001 letter. Affholder is a subsidiary of Insituform Technologies, Inc., with a local office at 5100 E. Second Street, Benicia, CA 94510. On June 21, 2001, Affholder filed a timely bid protest with the Central Contra Costa Sanitary District (the "District'?, challenging any contract award to Mountain Cascade, Inc. ("Mountain Cascade'? for the Dougherty Valley Tunnel and Trunk Sewer Project (DP 5902). Mountain Cascade submitted the lowest bid price of $12,274,260. Affholder submitted the next lowest bid of $13,274,000. The DistricCs estimate for this project is $15,000,000. As the next lowest bidder in this acquisition, Affholder qualifies as an interested party to file this protest. 17098129.1 Central Contra Costa Sanitary District BOARD OF DIRECTORS Supplemental Position Paper I Board Meeting Date: July 5, 2001 I No.: 6.. Type of Action: Responsiveness/Responsibility Hearing and Authorize Award Subject: Consider Responsiveness of Mountain Cascade, Inc.' s Bid, Aflholder's Bid Protest, and Consider Award of the Construction Contract for the Dougherty Tunnel and Trunk Sewer Project, District Project No. 5902. Submitted By: C. Swanson and Initiating Dept/Div.: Engineering and Legal K. AIm, District Counsel C. Swanson cV\..., K.Alm ISSUE: This dispute arises from a Bid Protest filed by Aflholder, Inc. ("Aflholder") resulting from Mountain Cascade, Inc. ("Mountain Cascade") having submitted the apparent lowest bid for the Dougherty Valley Tunnel and Trunk Sewer Project, District Project No. 5902 ("Project"). Aflholder is the apparent second lowest bidder. Aflholder claims that, Mountain Cascade's subcontractor on the conventional tunneling portion of the Project, Walter C.Smith, does not meet "the District imposed mandatory experience requirements" for the Project. Hence, Aftholder contends that Mountain Cascade should not be awarded the Project Contract and it should receive the award as the lowest responsive and responsible bidder. RECOMMENDATION: Conduct the hearing on the responsiveness and responsibility of Mountain Cascade's bid, consider the information presented and award the bid to lowest responsive and responsible bidder to be determined in accordance with the principals set forth herein. ALTERNATIVES/CONSIDERATIONS: The Board has the following three options to consider: 1. Declare the bid of Mountain Cascade, Inc. to be responsive and award the construction contract to Mountain Cascade, Inc., as the lowest responsive and responsible bidder; or Doc # 252746 Page lof8 2. Declare the bid of Mountain Cascade, Inc. to be non-responsive, or declare Mountain Cascade, Inc. to not be a responsible contract or for purposes of this bid, and award the construction contract to Afiholder, Inc. as the lowest responsive bidder; or 3. Reject all bids. (This may not be a viable option, due to time constraints.) RELEVANT F ACTUAL.-BACKGROUND: Plans and specifications for the project were prepared by Brown and Caldwell (B&C), URS Corporation (URS) and District staff; the Engineer's Estimate for the construction was $15,000,000. The project was advertised on May 18 and 24,2001. Four (4) bids, ranging from $12,274,620 to $14,104,439 were received and publicly opened on June 20, 2001. The apparent lowest responsible bidder is Mountain Cascade, Inc., at $12,274,620 having listed Nada Pacific as the microtunneling subcontractor and Walter .C. Smith as the conventional tunnel subcontractor. The apparent second lowest bidder is Affholder at $13,274,000 having listed Kinsel Industries, Inc. as the microtunneling subcontractor and McGuire and Hester for the open-cut end sewer construction. Shortly after the bid opening, Afiho1der notified the District (by letter previously provided to the Board) that it was protesting the bid of Mountain Cascade, alleging that the bid was non-responsive due the failure of Mountain Cascade's subcontractor for the conventional tunneling portion not meeting the experiential requirements set forth in the specifications. Aflholder has provided a letter brief and additional information to the District dated June 28, 2001, which was prepared by Richard B. Oliver of McKenna & Cuneo. That document sets forth contentions that Mountain Cascade's bid must be rejected as being both non-responsive and on the basis that Mountain Cascade is not a responsible contract or for this contract based on their bid proposal. Aflholder contends that Walter C. Smith does not meet the experiential requirements set forth in the bid specifications because none of Smith's experience includes: (1) A single tunnel 2000 feet long and 6 feet in diameter; (2) tunneling in similar ground conditions; and (3) tunneling with similar support systems. Aftholder contends that Smith's superintendent does not meet the required experience criteria, including 5 years of "recent on-the-job supervision experience on similar projects." Aflholder further contends that Mountain Cascade is not a responsible bidder on this project because Mountain Cascade does not meet the responsibility criteria established in the specifications. Aflholder suggests that the same basic issues raised with regard to responsiveness would also disqualify Mountain Cascade's bid because Mountain Cascade should not be deemed a "responsible bidder" under the circumstances presented. Doc # 252746 Page 2 of8 Not surprisingly, Mountain Cascade has submitted a response to this protest prepared by John W. Busby, II, Esq. which contends that Mountain Cascade's bid is responsive and that bid must be awarded to Mountain Cascade as the lowest responsible and responsive bidder. Mountain Cascade contends that it has met all of the experiential criteria set forth in the bid and that Walter C. Smith is "qualified" to provide the conventional tunneling services required for the project. Whereas, Afibolder contends that the bid specifications require that the tunneling contractor must have completed at least one project of 2000 feet in length and 6 feet in diameter, Mountain Cascade suggests the specification only requires that the tunneling contractor have completed one or more projects totaling 2000 feet in length with diameter of 6 feet or greater. Mountain Cascade has provided documentation demonstrating that Walter C. Smith has completed a number of tunnels as appropriate diameter with a cumulative total length far exceeding the 2000 foot minimum requirement. Mountain Cascade has further provided additional information on the project manager and other project team members, contending that the project team has ample experience to meet the specifications and to properly carryout the intended conventional tunneling portion of the Project. Mountain Cascade has provided a substantial list of projects completed for the District, and a complete list of the tunneling projects undertaken by Walter C. Smith. Mountain Cascade's stated position is that substantial language within the specifications provides that the bid should be evaluated "in part" based on the specific experience listed and in part on a review of the contractor's bid in its entirety. Mountain Cascade contends that the District meet and evaluate all aspects of the contractors' qualifications prior to rejecting a bid as non-responsive or as a non-responsible bidder, Mountain Cascade concludes such an analysis will result in an award to itself. LEGAL ANALYSIS: An award of a competitively bid contract is within the sound discretion ofa public entity. (Rubino v. Lolli (1970) 10 Cal.App.3d 1059, 1062.) The decision whether to award the contract will only be overturned if there is evidence the public entity's actions "were arbitrary, capricious, entirely lacking in evidentiary support, or inconsistent with proper procedure." (Ghilotti Construction Co. v. City of Richmond (1996) 45 Cal.AppAth 897, 903.) The California Public Contract Code makes it clear that the purpose of the public contracts bidding process is to protect "the public from misuse of state funds," "[t]o provide all qualified bidders with a fair opportunity to enter the bidding process, thereby stimulating competition in a manner Doc # 252746 Page 3 of8 conducive to sound state fiscal practices," and "[t]o eliminate favoritism, fraud, and corruption in the awarding of state contracts." (CAL. PUB. CaNT. CODE ~ 10300.) California courts have closely analyzed public contract disputes and have required strict compliance with bidding requirements. These courts have set aside public contracts even in the absence of fraud, corruption, or adverse effect on the bidding process, when the deviation from the bidding requirements facilitated corruption or extravagance, or made it likely the amount of bids or the response of the bidders was likely to be affected. (See Valley Crest Landscape. Inc. v. CitvCouncil (1996) 41 Cal.App.4th 1432 (bid mistake gave bidder the opportunity to have backed out of the contract that other bidders did not have); Konica Business Machines U.S.A.. Inc. v. Regents of University of California (1988) 206 Cal.App.3d 449 (lowest bidder's machines did not comply with contract requirements; thereby giving lowest bidder an advantage other bidders did not have).) Nevertheless, California courts realize that legal conjecture does not always apply to the real world. Thus, bid deviation "considerations must be evaluated from a practical rather than a hypothetical standpoint, with reference to the factual circumstances of the case. They must also be viewed in light of the public interest, rather than the private interest of a disappointed bidder. 'It certainly would amount to a disservice to the public if a losing bidder were to be permitted to comb through the bid proposal or license application of the low bidder after the fact, [and] cancel the low bid on minor technicalities, with the hope of securing acceptance of his, a higher bid. Such construction would be adverse to the best interests of the public and contrary to public policy.'" (Ghilotti Construction, supra, 45 Cal.App.4th at 908-909 quoting Judson Pacific-Mumhy Corp. v. Durkee (1956) 144 Cal.App.2d 377,383.) The California Attorney General has stated that "[a] basic rule of competitive bidding is that bids must conform to specifications, and that if a bid does not so conform, it may not be accepted. [Citations.] However, it is further well established that a bid which substantially conforms to a call for bids may, though it is not strictly responsive, be accepted if the variance cannot have affected the amount of the bid or given a bidder an advantage or benefit not allowed other bidders or, in other words, if the variance is inconsequential. [Citations.]" (47 Ops.Cal.Atty.Gen. 129, 130 (1966); see also MCM Construction. Inc. v. City and County of San Francisco (1998) 66 Cal.AppAth 359, 369.) The critical evaluation here is whether the alleged deviation of the Mountain Cascade bid was material enough to have given Mountain Cascade an advantage not afforded other bidders. "Whether in any given case a bid varies substantially or only inconsequentially from the call for bids Doc # 252746 Page 4 of8 is a question of fact." (47 Ops. Cal.Atty. Gen., supra, at 131.) The bid protestor has the burden of producing evidence to support its allegation that the bid variance caused an unfair competitive advantage. (See Ghilotti Construction, supra, 45 Cal.App.4th at 907.) Mere supposition by a protestor, without more, cannot result in the contested bid being rejected. (See Ghilotti Construction, supra, 45 Cal.AppAth at 912, fu. 6 (a claim of "potential" competitive advantage will not invalidate a bid, a protestor must show "actual" advantage).) In Affholder's June 28, 2001 letter to the Board, Affholder's attorney, Richard Oliver of the McKenna & Cuneo law firm, cited to several unpublished federal General Accounting Office ("GAO") decisions in support of its argument that Mountain Cascade is not a "responsible bidder" and its bid was not "responsive."! First, the federal GAD decisions are not binding in California. Second, several of the cases cited are unpublished and California courts do not permit citation to unpublished cases. Third, several of the decisions are not consistent with California law and the facts at issue. With regard to the five GAD decisions cited by Affholder in support of its argument Mountain Cascade's bid is not responsive, none of the decisions are applicable, since here, unlike the cases cited by Afffholder, there is no evidence that Mountain Cascade will not perform the contract as required. With regard to the six GAD decisions cited by Affholder to support its argument Mountain Cascade is not a responsible bidder, none of the decisions are binding in this situation, since they apply a more restrictive standard than that applied by California courts. For example, in Haughton Elevator Division. Reliance Electric Co. (1976) 55 Comp.Gen. 1051, 1055-56, the GAD speculated that [i]f an IFB [invitation for bids] were to require 5 years of relevant experience as a prerequisite to an affirmative determination of responsibility, but an award was made to a firm with less than that experience level, or its equivalent, participants with the specified experience may have been prejudiced in that had they realized that the competition would include firms with less experience and thus perhaps lower overhead, etc., those firms may have refrained from bidding or bid lower in an attempt to secure the award. Moreover, other :firms which did not participate because of the experience requirements might also have been prejudiced. 1 To clarity the distinction between the two terms: "A bidder is responsible if it can perform the contract as promised. (Tavlor Bus Service. Inc. v. San Diego Bd. of Education (1987) 195 Cal.App.3d 1331, 1341.) A bid is responsive if it promises to do what the bidding instructions require (Id.)" (MCM Construction. Inc. v. City and County of San Francisco (1998) 66 Cal.App.4th 359, 368.) Doc # 252746 Page 5 of8 Although this statement may have application in a GAO appeal setting, statement is in direct contrast to the Ghilotti court ruling. Ghilotti held that it will not allow hypothetical allegations to suffice for the requirement that the protestor present evidence of unfair competitive advantag~. Finally, California courts have long held that it will not allow bidder responsibility requirements to become convoluted into superiority contests between bidders. A public contract must be bid to the bidder with the lowest monetary bid, unless that bidder is found not to be responsible. (City of Imdewood-L.A. County Civic Center Auth. v. Superior Court (1972) 7 Cal.3d 861, 867.) Thus, "[a]lthough public bodies have discretion to determine which bidders are responsible, they may not, if they determine more than one bidder is responsible, make the award on the basis of relative superiority." (Boydston v. Napa Sanitation Dist. (1990) 222 Cal.App.3d 1362, 1369.) Even if the Board were to find Aftholder to have superior qualifications, the Board can not award to Aflholder unless Mountain Cascade is found to be not qualified. FACTUAL ANALYSIS AND CONCLUSION: The Board is reminded that any analysis and conclusions offered herein are tentative and the decision of the Board must be based on the complete record after the hearing has been concluded. The primary focus of the protest lodged by Aflholder relates to the portion of the bid forms (part III, Section 5(e)) which has been attached as Exhibit "A". The submittal of Mountain Cascade concerning of Section 5( e) are attached as Exhibit "B". A review of Section 5( e) reveals that it was intended that noncompliance with this Section "may" lead to a determination of a bid being non- responsive. It further states that the responsiveness evaluation will be based "in part" on the information to be provided below, thus indicating that the District Board can take into account the totality of the bid in evaluating responsiveness. A separate reference in the Notice to Contractors requesting bid proposals states: "The District Board of Directors reserves the right to reject any or all bids for the work and waive any non-material irregularities in the bid received." Part II, Instruction to Bidders, Section 15 (Bid Opening and Award of Contract) the specification state that: "The right is reserved, as the interest of the District may require, to reject any or all bids and to waive any non-material irregularities in the bid received." Therefore, the District Board has discretion to find a bid responsive even if there is a non-material irregularity. Doc # 252746 Page 6 of 8 Staff suggests that the intent of Section (e) (Exhibit A) was that the contractor should have at least one prior project of 2000 feet in length of tunneling with a diameter of 60 inches or greater. However, the staff concedes in its review of the information provided by both Affholder and Mountain Cascade that the specific language used in the Section (e) could be interpreted to allow the totaling of multiple projects to meet that criteria. Staff believes that the potential ambiguity exists in the language and that the bid proposal should be evaluated in light of that possible interpretation and not immediately eliminated as non-responsive. To the extent that the Board agrees that this language is subject to more than one interpretation, then the Board may fmd that Mountain Cascade's bid is at least minimally responsive as to the specific criteria of Section (e). In evaluating the additional issues raised by Aftholder, staffhas reviewed the documentation provided by Afiholder and Mountain Cascade, as well as conducted an additional review of the bid proposal and obtained opinions from independent experts. (More detailed information with regard to this analysis and the opinions of the experts will be provided at the hearing.) First, staff's review and the information provided by the experts suggests that a tunneling contractor which has substantial experience on shorter tunnels (such as 500 to 1000 feet) of similar or greater diameter should be able to successfully complete a tunnel project of 2000 feet or more. According to the review, there is little difference in construction technique between a tunnel of 500 feet in length and that of a tunnel of several thousand feet in length. Secondly, the staff concludes that the requirement that prior tunneling experience be "in similar ground conditions" is generally met by information provided by Walter C. Smith. The experts indicate that there is nothing particularly unique or different about this tunnel project. The specifications do indicate that gassy and squeezing ground conditions may be encountered; however, this does not make this project distinct from many other tunneling projects of the variety successfully completed by Walter C. Smith. Potential gassy and squeezing ground conditions are commonly encountered in tunneling operations within California. A similar conclusion has been reached by staffwith regard to the issue concerning Walter C. Smith's experience with the "support system" required for this project. Our conclusion is that the required support system is not unique although it may require heavier duty components than frequently used. Nonetheless, the technique for installation of the support system is much the same. No matter which contractor is selected, that contractor will have to provide support system submittals for approval by the District's tunnel consultant. The support system will have to meet the job specifications or it will not be authorized. Doc # 252746 Page 7 of8 Staff reiterates that these conclusions are tentative and final conclusions and the decision of the Board must be based on this information, as well as all additional information provided at the hearing. The tentative recommendation of this staff is that the proposal of Mountain Cascade is responsive in that any variations from the bid specifications are non-material and may be waived by the Board. Staff, therefore tentatively recommends that the award be made to Mountain Cascade, as the lowest responsive, responsible bidder. Doc # 252746 Page 8 of8 C t- - a:I - :z: =-= IU e. The undersigned Bidder submits below a statement describing work the Bidder has completed within the last five (5) years which is similar in character to that anticipated in the proposed project. A listing of three (3) jobs is preferable. It is the intent of the District to evaluate the responsiveness of the Contractor's bid in part based on whether the bid and information set forth below reflect substantial experience in successful completion of work of the nature and magnitude of this project. To meet the experience requirement for the proposed project, the Bidder shall have completed one or more projects involving 1,000 feet of 24-inch diameter or larger sewer using open-cut pipeline construction, 500 feet or more of 12-inch to 30-inch diameter sewer using microtunneling pipeline construction in similar ground conditions, and 2,000 feet or more of tunneling a 6-foot diameter or larger tunnel in similar ground conditions. The microtunneling and tunneling portions of the requirement may be met by using subcontractors meeting these minimum requirements. If a subcontractor is used, the bidder shall submit a statement describing work similar to that required for the Bidder. Failure to complete this section may result in the bid being rejected as non-responsive. PERFORMED FOR PROJECT TITLE AND DESCRIPTION CONTRACT AGENCY CURRENT TELEPHONE YEAR OF QUALIFIED EXPERIENCE AMOUNT CONTACT NUMBER PERFORMED SANITARY SEWER CONSTRUCTION PERSON 1. 2. 3. i Signed: Bidder Date DP#5902-PART 111-13 ._.--~_._-- a:a I- - a:I - :z: >< ..... e. The undersigned Bidder submits below a statement describing work the Bidder has completed within the last five (5) years which is similar in character to that anticipated in the proposed project. A listing of three (3) jobs is preferable. It is the intent of the District to evaluate the responsiveness of the Contractor's bid in part based on whether the bid and information set forth below reflect substantial experience in successful completion of work of the nature and magnitude of this project. To meet the experience requirement for the proposed project, the Bidder shall have completed one or more projects involving 1,000 feet of 24-inch diameter or larger sewer using open-cut pipeline construction, 500 feet or more of 12-inch to 30-inch diameter sewer using microtunneling pipeline construction in similar ground conditions, and 2,000 feet or more of tunneling a 6-foot diameter or larger tunnel in similar ground conditions. The microtunneling and tunneling portions of the requirement may be met by using subcontractors meeting these minimum requirements. If a subcontractor is used, the bidder shall submit a statement describing work similar to that required for the Bidder. Failure to complete this section may result in the bid being rejected as non-responsive. \ PERFORMED FOR PROJECT TITLE AND DESCRIPTION CONTRACT AGENCY CURRENT TELEPHONE YEAR OF QUALIFIED EXPERIENCE AMOUNT CONTACT NUMBER PERFORMED SANITARY SEWER CONSTRUCTION PERSON 1. '5~ 4 P'7 ~ cA.-4-~ 2. 3. ; Signed: Bidder ~.ZO'OI Date DP#5902-PART 111-13 '\\OUNTAIN CASCADE INC. P.O. Box 5050 Livermore. CA 94551 (925) 373-8370 FAX (925) 373-Q940 SEWERLlNE PROJECTS Nov 98 - Feb 00 City of Stockton 25 Navy Drive, Stockton, 96206 Phone (209) 937-8781 Owners Representative: Robert Granberg Southern Industrial Trunk Sewer 19,673' of 8" - 84" up to 25' Deep Design Engineer: Montogomery-Watson Project Value: 11.6 Million Aug 98 - Mar 99 South Placer Municipal Utility District PO Box 45, Loomis, CA 95650 Phone (916) 652-5877 Owners Representative: Richard Stein Roseville Trunk Sewer Upgrade, Roseville CA 6289' of 42" VCP. 1750' of 24" VCP. 360' of 48" Bore up to 22.5' Deep Design Engineer: The Spink Corp Project Value: 2.7 Million Aug 97 - Jan 99 Central Contra Costa Sanitary District 5019 Imhoff Drive, Martinez, CA 94553 Phone (925) 228-9500 Owners Representative: Henry Thorn South Orinda Sewer Improvement, Orinda CA 8245' of 36" microtunning, 5,680' of 6",8" 10", 15" & 21" up to 40' Deep Design Engineer: CCCSD Project Value: 11.3 Million Jul 94 - Jul 95 Eastbay Municipal Utility District 375 11th Street, Oakland, CA 94607 Phone (510) 825-3000 Owners Representative: AI Weitz North Interceptor Relocation, EmeryvilJe CA 2,500' of 72" & 84" up to 30' Deep Design Engineer: EBMUD Project Value: 14.6 Million \\OUNTAiN CASCADE INC. P.O. Box 5050 Uvermore. CA 9455i (925)373-8370 FAX(925)3734J940 WATERLINE PROJECTS over 5-MILES IN LENGTH' Jul 98 - Jul 99 Eastbay Municipal Utility District 375 11th Street, Oakland, CA 94607 Phone (510) 825-3000 Owners Representative: Jim Sanders Mokelulmne #3 Aqueduct Rehabilitation, Stockton CA 61,000' of 84" rehab Design Engineer: EBMUD Project Value: 16.2 Million May 95 - Jan 96 San Juan Water District 9935 Auburn-Folsom Road, Granite Bay, CA 95746 Phone (916) 791-0115 Owners Representative: Jim English Cooperative Transmission Main, Sacramento/Folsom CA 49,000' of 36" through 78" Design Engineers: Boyle Engineering Project Value: 20 Million May 94 - May 95 Central Coast Water Authority 255 Industrial Way, Buellton, CA 93427 Phone (805) 688-2292 Owners Representative: Bruce Burnsworth Mission Hills Santa Ynez Aqueduct Extention, Lompoc CA 126,600' of 36" - 39" Design Engineers: Montgomery Watson & Bookkman-Edmonston Project Value: 18.3 Million July 93 - May 94 Zone 7 Water Agency 5997 Parkside Drive, Pleasanton, CA 94588 Owners Representative: Dennis Gambs Vineyard Pipeline, Pleasanton CA 37,000' of 36" Design Engineers: Zone 7 Water Agency Project Value: 8 Million Phone (510) 484-2600 Aug 92 - June 93 Modesto Irrigation District 1231 11th Street, Modesto, CA 95352 Owners Representative: Allen Short Domestic Water Project, Transmission Pipeline 92,175' of 24" - 60" Design Engineers: Black & Veatch Project Value: 22 Million Phone (209) 526-7373 L c: ...J lJ) I . C\J :I 0 CJ ,.. W GI I ~ Dougherty Valley Tunne. Trunk Sewer '< 0 .. :J: 1-1 CCCSD '1l r 1-1 . N II ProjecI1 Prc:pct 2 Project 3 . ., U1 c- ..,... II ~ "',)let...... o.cnpllon: SpeGfa6an 5050 Un & Mark West PIPIt,.. ,.. "tl Brad.,., kllen;eplar. P"- t & 2 ~ CJ Dixon Landing Road & 1-880 Marte. Wesl c,... en.llna 0 Penlteldl Creek CtaelIngI &Ira Rou Creel Calin; ~Cre.kCnJMing 0 ...s- O) 0 MilpitH, CllbrdrJ ana R-. CIIIlfamil SIUIIneIIIo. c.Momll ., J ..n Type bCII JIIon ~,"",ftt AkkMlllft 81"", ..lBM AIIkenr81 SUry MOM Lowt CIaIed ,.. EPB 111M N 0) .....'" "'11IftIIiC Akk8mIn Pipe Jaing A1....1i1n ~ J8dciIG W..... PIpe JIcIdna g a.....r: WSSP, SD"SSP &0- SSP, ..- SSP 120" IDACP (142" 00) x LangIh: 4t~F.I, 4D5-Fe11 ,....... leo-Feel 865-Feet (Single DrIvt) <I: ~..I_ C......: Sendy SII. Bay abI, TIdII bag a.,wy Stnd. RIVIr baIb1t Sandy CIIy LL. UI 0......... 11...... (*-It: tQ.f=... 1()..FeIt 2O-FeIt UI S ShIft DIpIII: 3O-Fell 3lJ-r:.t 35-FII' ~ - ConnI' IN 1IWtI.: tI03.18O "',670 '1."0,IDJ .. ~ F1nll.... 1983,. .....795 11._'- I LLl Q DwdGn tit I...... ...11: 2 Wanthl 2 ManIt. 3 ManIII <J: (.;) DIll: F*-Y -1IIR'h '01 OaIoblr - NIMII'r1W '00 MIy -~.. '00 UJ <I: c..:> t... :z: Pr'cIjMlt OWnw: PacifIC a.. I EJIGIriG CaIIlpeny City ~ Sen. Roll SCRS!) c - ::I <J: ...... ......-: (92&) t74-tCM6 (101) 581-5300 (9tl) 875-11512 . N - 0 - Mdn .....n. J_ RDzgeOt2U H~I I08UI KI~ -5 PteJMt .......: , D 0 ~ x:: x:: CIIenI<<I....... Contnclar: P8df1C <<3816 Elldric; ~ Utu1IIIin c.c..dl. Inc. Mau"'* C..... Inc. - c... (t25) 114-11046 (125) 37W370 .. (Y) P.... N_er: (925) 313-8311 t (Y) PNjIct ...........: Aulljll H8IIngs RegerWlll-.on Rager Wlllmlcln '1l -- II: C\J Q l..LJ :% - 0 " 0 . N 0 I . C) C\J 0' . o.J .. YIIIeW TIIIIIIIlA Ttd ..... cccso N I .... = I/aIII to) :::> -, "tl 0 N W t: QI ...j .. I ('I'") ::J 0 ... 0 W IlIlI 0..: Dougherty Valley Tunnel Trunk Sewer 'C I .. 0 % I-l CCCSD '11 r- I-l .. N 1II . Project 4 Project 5 Project . ., U1 L. . ~ ... loll iJ PNfed ..."'. & o..crtplian: PIrIIIII OIlIII sewer. PhI.. III SFIA Conlnlcl No. 58011 Ncd1lr111ap1ar Aeb:ation .... 0 C) Plqlct "".17-17 U.... fWoc8tlon. Ph8Ie VI SD-200 0 ~ OJ C) Tudunn Riv.r CroMinG H~ 101 Craaing EmwyvIe, CArnie ('r) .. - Modesto. C&l1fam1B "bM. Cellfarn. ." m &c....n IIIIhId: AkMnNn 8Qfty MTBM MIr8rrMn CIoJed_18M AkIfannIn 0GIId... TIM g W8IfIIII"" ~ .....11 PIpe J8c1dng Wed... Pipe Jai1g :x: De.." : eo-IORCP (18'" (0) ...... IlRCP (101- (0) 84- IDRCP (101. (0) <I: ........: 8Q(H='eeI (SIngle Olive) 585 feel (SIn'" DIM) 1100.F... (MuII\1II DIMS) LL- Ul floItguI DIM: 4IJO.FMf' Ul I "'Ic~ SII1d, RMIr baIorn _Mud Illy Mud N .. .... CoIdrUt .... ......: 1350.000 S521.5OO 1440.000 . ., CenIrMt'" PI1ce: "'&,000 1111,000 $440.000 w ... LLJ Q c.nbIl D...... d ....: <I: (.;) DwIIon MAca,....: ~ (.;) L :z DIIJIIIon ...... UII.I: 1 Marl'" 2 ManIw 2 MontI'" c --. ::J <x: OMIt MIn:Il 'II June '81 "'96 . 1\:1 fo:; 0 . 0 .J ....... 0..: CIy rJ MDdllIa City I CcKnr ~ S8n Franca EaII Bay M,,*lpel UII.y Dillrtct - z:: :E:: .............: (208) 5TT-6482 (415) 11M-&315 (510) 217.1124 c... ....... .. la.r: RClblJIt 8nII ..... .... -. w.Jtz .. M .. M it -- N - Q ca....,..... ContncIDr: MIukIIM)arf~ Canat. Co.. Inc. SIIIcy I Wllteck, Inc. MounIIIn c.c... Inc. UJ ...........: (558) 252-4800 (415) 2IS. 7!570 (925) 31MITD :3 ..- PNjIcI....ar: Kim Bllllel AllDeIt Clementi R. WI..... 0 ." 0 .. C\J lQ , .. <:::) to) C\J :.!:: Ot .~WIIr 1'lnlIl' T,....... 0CC8D - to) ::::I erJDO'I -, iJ , 0 w Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 6.a. BIDS AND AWARDS Type of Action: RESPONSIVENESS HEARING / AUTHORIZE AWARD AND AUTHORIZE AGREEMENTS Subject: CONSIDER RESPONSIVENESS OF MOUNTAIN CASCADE, INC.'S BID, AND CONSIDER AWARD OF THE CONSTRUCTION CONTRACT, AND AUTHORIZE CONSULTING AGREEMENTS WITH BROWN AND CALDWELL, URS CORPORATION, EPC/UNDERGROUND CONSTRUCTION MANAGERS AND SOHA ENGINEERS FOR THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT, DISTRICT PROJECT NO. 5902 Submitted By: H. Thom, Senior Engineer Initiating Dept./Div. : Engineering/Environmental Ser ISSUE: On June 20, 2001, sealed bids were received and opened for construction of the Dougherty Tunnel and Trunk Project, District Project (DP) No. 5902 ("Project"). The Board of Directors must authorize award of the contract or reject all bids within 50 days of the opening of bids. Authorization of the Board is required for the General Manager to execute professional services agreements in amounts greater than $50,000. RECOMMENDATION: Conduct a responsiveness hearing on the bid submitted by Mountain Cascade, Inc. Authorize award of a construction contract in the amount of the Project (DP 5902) to the lowest responsive bidder contingent upon a fully-executed financing agreement with Windemere BLC and funding of the escrow account. Authorize consulting agreements with Brown and Caldwell, URS Corporation, EPC/Underground Construction Managers and SOHA Engineers contingent upon the execution of the financing agreement and funding of the escrow account. FINANCIAL IMPACTS: If the Project is awarded to Mountain Cascade, Inc., the estimated Project costs are approximately $19,238,000, including design, bid price, contingency, and construction management. The estimated total Project costs are approximately $20,388,000 if Affholder, Inc. is awarded the project. All costs will be reimbursed by Windemere BLC, developer in the Dougherty Valley. AL TERNATIVES/CONSIDERATIONS: The Board has the following three options to consider: 1. Declare the bid of Mountain Cascade, Inc. to be responsive and award the construction contract to Mountain Cascade, Inc., as the lowest responsive bidder; or 6/28/01 U:\PPR\SM\DOUGHNW5902PPR. WPD Page 1 of 1 3 POSITION PAPER Board Meeting Date: July 5, 2001 Subject: CONSIDER RESPONSIVENESS OF MOUNTAIN CASCADE, INC.'S BID, AND CONSIDER AWARD OF THE CONSTRUCTION CONTRACT, AND AUTHORIZE CONSULTING AGREEMENTS WITH BROWN AND CALDWELL, URS CORPORATION, EPC/UNDERGROUND CONSTRUCTION MANAGERS AND SOHA ENGINEERS FOR THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT, DISTRICT PROJECT NO. 5902 2. Declare the bid of Mountain Cascade, Inc. to be non-responsive, and award the construction contract to Affholder, Inc. as the lowest responsive bidder; or 3. Reject all bids (not recommended due to time constraints). BACKGROUND: In June 1997 the District annexed the eastern half of the Dougherty Valley in southern Contra Costa County. Developments proposed for this valley include approximately 11,000 homes on the former Gale and Gumpert Ranch properties. Central Contra Costa Sanitary District was identified in Contra Costa County's 1996 Final Subsequent Environmental Impact Report, Windemere - Phase I and Gale Ranch - Phase II as the preferred provider of sewer service to this southern area of Contra Costa County. The District's approved plan for providing wastewater service to the Dougherty Valley and tributary properties is to collect and convey wastewater by gravity sewers to the southern end of the Valley. At the southern end of the Valley the wastewater would enter a 4800 foot long gravity tunnel that will travel underneath the Dougherty hills west to the intersection of Alcosta Boulevard and Estero Drive. At this point, the tunnel would make a transition to a 24" diameter trunk sewer that will travel along Estero and Mangos Drives to the San Ramon Pumping Station. The trunk sewer is approximately 3,300 feet long. From the San Ramon Pumping Station the waste would be pumped north through parallel 2-mile long force mains and then flow by gravity sewers to the District Treatment Plant in Martinez. (See Attachment A for map). Construction of the Project was delayed for more than two years because of various litigation, including litigation between the District and the City of San Ramon over the issuance of an encroachment permit. The Court ruled in the District's favor and the City appealed. The litigation was resolved by a negotiated settlement agreement which includes a severe time constraint for the construction of the Project. The City issued an encroachment permit for the Project on June 18, 2001. Pursuant to the settlement agreement, the trunk sewer portion of the Project is to be completed on an accelerated time schedule by the end of December 2001. Expansion of the San Ramon Pumping Station, from its present capacity of 4.8 million gallons per day (mgd) to the ultimate peak wet weather capacity of 16.0 mgd, and construction of a new force main and interceptor sewer (San Ramon Valley Interceptor, Phase 3) will be needed as wet weather flows from South San Ramon, the Dougherty 6/28/01 U:\PPR\SM\DOUGHNW5902PPR. WPD Page 2 of 1 3 POSITION PAPER Board Meeting Date: July 5, 2001 Subject: CONSIDER RESPONSIVENESS OF MOUNTAIN CASCADE, INC.'S BID, AND CONSIDER AWARD OF THE CONSTRUCTION CONTRACT, AND AUTHORIZE CONSULTING AGREEMENTS WITH BROWN AND CALDWELL, URS CORPORATION, EPC/UNDERGROUND CONSTRUCTION MANAGERS AND SOHA ENGINEERS FOR THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT, DISTRICT PROJECT NO. 5902 Valley, and other tributary properties increase over time. These projects will be constructed separately, although also within an accelerated time frame. Plans and specifications for the Project were prepared by Brown and Caldwell (B&C), URS Corporation (URS) and District staff; the Engineer's Estimate for the construction was $15,000,000. The Project was advertised on May 18 and 24, 2001. Four (4) bids, ranging from$12,274,620 to, $14,104,439 were received and publicly opened on June 20, 2001. A summary of the bids is presented in Attachment 1. The apparent lowest responsible bidder is Mountain Cascade, Inc., with Nada Pacific as the microtunneling subcontractor and W.C. Smith as the tunnel subcontractor, and the bid amount of $12,274,620. The Engineering Department conducted a technical and commercial review of the bid submitted by Mountain Cascade, Inc. The bid documents require the tunnel subcontractor to have completed one or more projects involving 2,000 feet or more of tunneling a 6-foot diameter or larger tunnel in similar ground conditions. Mountain Cascade's tunnel subcontractor, W.C. Smith Inc., has completed one or more projects with a minimum tunnel diameter of 6 feet aggregating a tunneling distance of well over 10,000 feet. However, none of those individual projects has a length of 2,000 feet by itself. The second lowest bidder, Affholder, Inc. submitted a bid protest on this issue (Attachment 2) claiming Mountain Cascade's bid is therefore non-responsive. Prior to considering resolution of this dispute, it is appropriate for the Board to conduct a hearing on the issue of responsiveness and the protest in order to receive information from the interested parties. Both Mountain Cascade Inc. and Affholder, Inc. representatives have been informed of the hearing process and possible award decision by the Board of Directors (Attachment 3). The two bidders will be submitting supplemental documentation prior to the scheduled hearing. A staff recommendation along with subsequent documentation will be presented during the hearing. (This information was received too late to be evaluated and incorporated into this document.) Bid proposals may be rejected by the Board if there are variances from the Contract Documents that are determined by the Board to give a bidder an unfair competitive advantage or otherwise defeat the goals of the public bidding process. A material variance could be based on the patent failure to comply with the bid specifications or, if, upon evaluation of the subcontractor's experience and resources, there is significant doubt that the subcontractor would be able to successfully complete the project. 6/28/01 U:\PPR\SM\DOUGHNW5902PPR. WPD Page 3 of 1 3 POSITION PAPER Board Meeting Date: July 5, 2001 Subject: CONSIDER RESPONSIVENESS OF MOUNTAIN CASCADE, INC.'S BID, AND CONSIDER AWARD OF THE CONSTRUCTION CONTRACT, AND AUTHORIZE CONSULTING AGREEMENTS WITH BROWN AND CALDWELL, URS CORPORATION, EPC/UNDERGROUND CONSTRUCTION MANAGERS AND SOHA ENGINEERS FOR THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT, DISTRICT PROJECT NO. 5902 The Board has the following three options: 1. Declare the bid of Mountain Cascade Inc. to be responsive, and award the construction contract to Mountain Cascade Inc., as the lowest responsive bidder; or 2. Declare the bid of Mountain Cascade Inc. to be non-responsive, and award the construction contract to Affholder, Inc., as the lowest responsive bidder; or 3. Reject all bids (this is not recommended due to time constraints). If the Board determines that the bid of Mountain Cascade, Inc. is responsive, the construction contract should be awarded to Mountain Cascade, Inc. The funds required to complete the project, as shown in Attachment 5, are $16,978,000. The total project cost is anticipated to be $19,238,000. Construction of the Dougherty Tunnel and Trunk sewer project, is included in the 2001- 2003 Capital Improvement Budget on pages CS-53 through CS-56. Staff has conducted a cash flow analysis and concluded that adequate funds are available for this project. Under an agreement with the developers of the Dougherty Valley, Windemere BLC will reimburse the District for construction costs associated with the tunnel and trunk sewer. To receive reimbursement for costs associated with the construction, the District must enter into a financing agreement with Windemere BLC. The award of the construction contract should be contingent upon execution of the financing agreement with Windemere BLC and funding of an escrow account required under the agreement. The financing agreement is the subject of a separate Position Paper at this Board meeting. Construction management, contract administration, inspection, and field office clerical will be performed by District staff, B&C, EPC/Underground Construction Managers (EPC/UCM), and temporary clerical employees. Office engineering services, including shop drawing review will be provided by B&C and URS. B&C and URS were selected to provide design services based on a formal proposal and selection process. Because of satisfactory performance and knowledge of the project, B&C and URS are recommended to provide office engineering service for this phase of the project. B&C was also selected to provide resident engineering and pipeline inspection services based on a formal proposal and selection process. EPC/UCM was selected to provide specialty tunnel inspection services 6/29/01 U:\PPR\SM\DOUGHNW5902PPR. WPD Page 4 of 1 3 POSITION PAPER Board MfHlting Date: July 5, 2001 Subject: CONSIDER RESPONSIVENESS OF MOUNTAIN CASCADE, INC.'S BID, AND CONSIDER AWARD OF THE CONSTRUCTION CONTRACT, AND AUTHORIZE CONSULTING AGREEMENTS WITH BROWN AND CALDWELL, URS CORPORATION, EPC/UNDERGROUND CONSTRUCTION MANAGERS AND SOHA ENGINEERS FOR THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT, DISTRICT PROJECT NO. 5902 based on a formal proposal and selection process. Professional Services Agreements in the amount of $850,000, $150,000 and $430,000 have been negotiated with B&C, URS, and EPC/UCM respectively. Staff has also negotiated a cost reimbursement agreement with SOHA Engineers in the amount of $60,000 to perform a preconstruction damage assessment of the houses along the construction route. SOHA performed satisfactorily on the preconstruction damage assessment for the San Ramon Valley Interceptor and Pleasant Hill Interceptor, Phase 4 Projects. The environmental impacts of construction and operation of the tunnel and trunk sewer facilities were addressed in Contra Costa County's 1996 Final Subsequent Environmental Impact Report, Windemere - Phase I and Gale Ranch - Phase II (SCH# 96012003). The District's Board of Directors reviewed the Environmental Impact Report (EIR) during it deliberations regarding annexation of the Windemere property in June 1997 and established its independent finding that the environmental impacts of providing wastewater utility service can be reduced to less than significant levels through implementation of the mitigation measures required of the project by Contra Costa County. RECOMMENDED BOARD ACTION: Conduct a responsiveness hearing on the bid submitted by Mountain Cascade, Inc. Authorize award of a construction contract in the amount of the Project (DP 5902) to the lowest responsive bidder contingent upon a fully-executed financing agreement with Windemere BLC and funding of the escrow account. Authorize consulting agreements with Brown and Caldwell, URS Corporation, EPC/Underground Construction Managers and SOHA Engineers contingent upon the execution of the financing agreement and funding of the escrow account. 6/28/01 U:\PPR\SM\DOUG HNW5902PPR. WPD Page 5 of 1 3 ~ Ml L-t I I 111 Iz. Ut. 1j::f::1 J..:J-.1 . T\jJ ~ -\ r t2rA ~Ud~ H-I '-{--} t:J:11 ~ - = ~CJ..J) ;>xv A" ~d ~ -c r- ~~ = j x<< ~x 5\,)..J 3{ 1-- t7r\ = J:'8:~~~~W~~ q ~I;::: t: a'.' .; ~ ~~~ ~.~ ~~,.=~~'9LE " . ..........."/';_ K> ~ SHAPf.U INDUSTRIES .... ;iQ6.,250-004 ---, ...., .-I 18 ...., ,) . ../' '.. /' :j f=~ ~ ~ ~ fi I .' /..... J t ~~~~~~ ~-~'::\';~1\1 ~/ R~I//" . /;;i;?;f:J: '.. ............~. - ~ I ;J... r\....J1 \4::. -~ R'OO~ . ....\ / L . ... ..... r I ~ 0 - . HOMEOWNER'S ...... ". .; / 3 +- i Il H I 1. ~ iL5zi ASS~~'.4T10N', --...,)\ /:,/ i _ ,... I ..LJ..-.f=iAl ~: OPEN....~.~AC~,.,; .' /' /' '. ~~ ~ _LIIIT III" s't-j\--Lrt7 TTI2~''';'''''\:'''':~~ ( ........ /.</./../ .... ...... ...1.f~.~~~ks..- ..< I 1'- \....J+.J.:..r'H=1 leT \ '" .../ // .,' . /2 .20;:250-008 ..' _ r ~ i ";) V"",-I~/I\?:;::,?'I;; // ,'PRO"()~lD'" ! -i~i:.~-- u__~_ ) -"=--'~ J;;<?!;01~~~~ik,.'/ 212-030-008 . :.....1 '\ ;/~r . ------on------------ - ~-;.('/..:/. ........ ~ !~ . === '=- .,.::=: h l:d o m ,.. :II 3: ,. :II ", .... ~ 0't'<l .,,<t> ." E.B.U.u,D. 2Q6.,25~7 ~ ...~ ~ "- If .'t' ,(:1 / .:! Q o "" C) "" i' . II I o I 1000 I ) /I; / FEET ~ i:i> <> o <> '" ~ .., J., '" Central Contra Costa Sanitary District ...~ Attachment PROPOSED DOUGHERTY VALLEY TUNNEL AND TRUNK SEWER ALIGNMENT A Page 6 of 13 ATTACHMENT 1 Central Contra Costa Sanitary District SUMMARY OF BIDS PROJECT: Dougherty Valley Tunnel and Trunk DATE June 20. 2001 - 2 p.m. LOCATION San Ramon ENGR. EST. $15.000.000 No. BIDDER BID PRICE (Name & address) 1 Mountain Cascade Inc. $ 12,274,620 P.O. Box 5050 Livermore, CA 94551 2 Affholder, Inc. $ 13,274,000 17988 Edison Ave. Chesterfield, Missouri 63005 3 Super Excavators, Inc. $ 14,077,260 N59 W14601 Bobolink Ave. Menomonee Falls, WI 53051 4 Ranger Pipelines, Inc. $ 14,104,439 1296 Armstrong Ave. San Francisco, CA 94124 $ $ $ $ $ $ BIDS OPENED BY DATE 06/20/01 SHEET NO. -1-0F ..L Page 7 of 13 ATTACHMENT 2 II AFFHOLDER INCORPORATED 17988 Edison Ave. P.O. Box 1026 (63006-1026) Chesterfield, MO 63005-3700 Office: (636) 532-2622 · Fax: (636) 537-2533 Tunnel Contractor June 21, 2001 Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 Attn: Curt Swanson Environmental Services Division Manager Re: Dougherty Valley Tunnel and Trunk Sewer District Project 5902 Protest of Qualification of Subcontractor Bidder Dear Mr. Swanson: We are writing this as a formal protest to the bid of, and any award to, Mountain Cascade, Inc. due to their submission of Walter C. Smith Company, Inc. as the subcontractor to complete the tunnel excavation for the above referenced contract as submitted by Mountain Cascade, Incorporated. Under Part III, SECTION 5.e Walter C. Smith Company, Inc. was required to submit its qualifications with regard to completing "a listing of three jobs preferable" that are similar in nature to the Dougherty Valley Tunnel, together with certain other requirements. To our knowledge and based on our investigation, Walter C. Smith Company, Inc. has not completed any projects over the past five years that are similar in nature to the Dougherty Valley Tunnel, nor has it completed any tunnel of "2000 feet in length and 6 feet in diameter over the past five years" or in the company's history. As per PART II, Instruction to Bidders, Item 15, paragraph 1, we request the information submitted with the Mountain Cascade, Incorporated bid with regard to the qualifications of Walter C. Smith Company, Inc. be submitted to our office, at the above address, as soon as possible. . ~ Page 8 of 13 ATTACHMENT 2 II Page 2 June 21, 2001 Mr. Curt Swanson Central Contra Costa Sanitary District should reject the Mountain Cascade, Incorporated bid as non- responsive due to the "lack of successful experience in performing work of similar nature and magnitude" of the proposed tunneling subcontractor Walter C. Smith Company, Inc. Respect AFFH Pc: Henry Thorn, Senior Engineer, Central Contra Costa Sanitary District Munawar Husain, Associate Engineer, Central Contra Costa Sanitary District Page 9 df 13 ATTACHMENT 3 Central Contra Costa Sanitary District 5019 Imhoff Place, Martinez, Ca 94553 (925) 228-9500 . www.centralsan.org FAX: (925) 228-4624 June 22, 2001 CHARLES IV. BA 1TS Gelleral Mallager Mr. Jerome P. Shaw Affholder Incorporated 17988 Edison Avenue P.O. Box 1026 (63006-1026) Chesterfield, MO 63005-3700 KENTON L. AUf Coullsel for the District (915) 938-/.130 JOKE E. MURPHY Secre/tlry of the District SUBJECT: Dougherty Valley Tunnel And Trunk Sewer Project (DP 5902) Bid Protest - Board Presentation 7/5/01 Dear Mr. Shaw, This is to acknowledge receipt of your letter to the District dated June, 21, 2001. As discussed with Mr Bob Stier of your office on June 22, 2001, the tentative date of award of the bid is July 5, 2001, protest pending at that time. The Board Meeting for the award starts at 2:00 p.m., in the District's Board Room at 5019, Imhoff Place, Martinez. You have the right to make a presentation to the Board, or have your legal representative to present your case. We are requesting that the presentation, if you wish to make one, be limited to 15 minutes. Please advise us in advance if more time is needed. Please also let us know in advance who will be making the presentation. ~ . "" All written 3documentation that you plan to present to the Board must be received in my office by end of business on Wednesday, June 27, 2001. We strongly urge that you include all detail information for your presentation in the package. If you need further information, please call me at (925) 229-7334. Sincerely yours, A // ~ ,{~ Henry Thom . I Project manager HT:jb cc: Mr. Mike Hester, McGuire & Hester Inc. Page 10 of 13 @ Recycled Paper U :\PPr\Bertera\affholderprotest. wpd ATTACHMENT 3 Central Contra Costa Sanitary District June 22, 2001 FAX: (925) 228-4624 CHARLES If/. BAITS G~ncr(ll Afmmgcr Mr. Mike Fuller Mountain Cascade, Inc. P.O. Box 5050 Livermore, CA 94551 KENTON L. ALM Counsel for the Districr (925) 938-1430 JOKE E. MURPH!' Secretary of the District SUBJECT: Dougherty Valley Tunnel And Trunk Sewer Project (DP 5902) Bid Protest - Board Presentation 7/5/01 Dear Mr.Fuller, As discussed, Affholder Inc., has made a formal protest of your bid on the Dougherty Project. A copy of the protest was faxed to your office yesterday. Also as discussed, the tentative date of award of the bid is July 5, 2001, protest pending at that time. The Board Meeting for the award and the protest starts at 2:00 p.m., in the District's Board Room at 5019, Imhoff Place, Martinez. You have the right to make a presentation to the Board, or have your legal representative to present your case. We are requesting that the presentation, if you wish to make one, be limited to 15 minutes. Please advise us in advance if more time is needed. Please also let us know in advance who will be making the presentation. All written documentation that you plan to present to the Board must be received in my office by end of business on Wednesday, June 27, 2001. We strongly urge that you include all detail information for your presentation in the package. If you need further information, please call me at (925) 229-7334. Sincerely yours, ~? 7/ I /~ Henry ThO:? Project manager HT:jb cc: Michael DeBenedetto, W.C. Smith, Inc. Page 11 of 13 U :\PPr\Bertera\protestltrtomtn. wpd @ Recycled Paper ATTACHMENT 4 DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT DISTRICT PROJECT NO. 5902 POST -BID PRECONSTRUCTION ESTIMATE IIfM DESCRIPTION TOTAL PERCENT OF ESTIMATED CONSTRUCTION COST 1. Construction * Contract - Mountain Cascade, Inc 12,274,620 * Contract Contingency at 1 5 percent 1,841,380 * Incentive For Early Completion 150,000 Subtotal 14,266,000 100.0 2. Construction Management * Project management 263,000 * Contract Administration 128,000 Subtotal 391,000 2.7 3. Consultant Contracts * Design Support, Resident Engineer, 850,000 Inspectors (Brown & Caldwell) * Geotechnical, structural, vibration 150,000 (URS) * Tunnel Specialist Inspector 430,000 (EPC / UCM) * Precon Damage Assessment 60,000 {SOHAl * Material Testing (Kleinfelder) 50,000 * Surveyor 30,000 * Odor (Brown & Caldwell) 25,000 * Noise / Vibration (Wilson, Ihrig, Inc) 25,000 * Misc. Consultants (Traffic, 20,000 Arborist,etc ) Subtotal 1,640,000 11.5 Page 1 2 of 1 3 ATTACHMENT 4 1IEM DESCRIPTION TOTAL PERCENT OF ESTIMATED CONSTRUCTION COST 4. Miscellaneous * Community Liaison 150,000 * Public Relations Misc 53,000 * District Survey 1 0,000 * Legal 50,000 * Dispute Review Board 50,000 * CSO/POD 40,000 * City Inspector / Permit 100,000 * Outside Inspection (County, etc.) 30,000 * Engineering Supports 10,000 * Field Office Secretary 50,000 * Field Office/Vehicle- Lease/Utilities 60,000 * Field Office Support Misc 22,000 * Right-of-way, Staging Area 25,000 Subtotal 650,000 4.5 5. Contingency at 15 percent, 402,000 2.8 Items 2 thru 4 6. Preconstruction Expenditure 1,889,000 13.2 7. Total Project Cost Estimate 19,238,000 134.9 8. Less Funds Authorized To date (2,260,000) 9. Total Allocation of Funds to Complete Project 16,978,000 Page 1 3 of 1 3 DOUGHERTY VALLEY TUNNEL & TRUNK SEWER Central Contra Costa Sanitary District July 5, 2001 BID RESULTS DOUGHERTY TUNNEL & TRUNK SEWER PROJECT Bidder Mountain Cascade, Inc. Affholder, Inc. Super Excavators, Inc. Ranger Pipelines, Inc. Bid Amount $ 12,274,620 $ 13,274,000 $ 14,077,260 $ 14,104,439 Engineer's Estimate $ 15,000,000 MOUNTAIN CASCADE BID PROPOSAL . Mountain Cascade is prime contractor. · 2 Subcontractors Walter C. Smith as Tunneling Subcontractor NADA Pacific as Microtunneling Subcontractor . Mountain Cascade and Subcontractors have California "A" Licenses . Adequate Bonding Capacity . Established Contractors Mountain Cascade - 19 years Walter C. Smith - 54 years NADA Pacific - 9 years _.__~_____~_.__._._____~~_.___,_.__....._._.__"__.___._.,_._____..__.,_.._.,........ ..'u_.~,___...,_____._,.___.__._,.__.."..._.u~..___,._"__"'___.'_'___"___'___"'~'________+_--"-__'_'______~"-.-.-..--.---...... AFFHOLDER PROTEST . Mountain Cascade Bid is Not Responsive - Tunneling subcontractor does not meet experience qualifications. - W. C. Smith has not completed a single tunnel 2,000 feet long or more, 6 feet or greater in diameter, similar to the Dougherty Valley Tunnel. __"... ,__..._._.__.__..____.__._....._..-_._".__,,_.._.".____._.___~'____'_'._.,__._'_'"____'" ..........,_._._._........_....,.._.".....__.".____..__... ....__m__."..,._..._,._._..._._,,__~._,_.__~_..._______.____"~_..,',..__~._.____,,.._._,._.____""_...___.____'_...-.. ---.--.----------------'-- \ -----' 1/ )/ \ " ..- ./ '\ '- -' -, / . '__I '--....... // ...... /":Y- ---- / / " // /~ ";'....1/' // / /<# // -~\ / -/ '. / / / / / / / / / / .-' / /, // // : / / /tt /~,___/ / ttC/ / /~ / / ' // /.:.-- / /'- , "... " "" (".,--,,/' -/ / / / / / / /tt /' ,/ // / / . / / / / / / / SHAPELL INOOSTRIES 206-2Sll-OO( ---.-- -__~.I / I ; // L/ ,/' /' & SHAPELL INDUST1II ES 106-251>-408 ,lll~s..U!l<L.U.j...LL..L.;J.lJJQ!LL!J. ; ~ ------~------------ f ',.,-",/ ~ / ' .,; P.G.&. E SUBSTATION 212--mo-ooa ...... ...... : ",/ ...... </1'''' ... ....... ...... ---_/ o III ... ~ )0 ~ ------~------------~- ~'1-<l> " ~ ~ E.8.II.lJ.D. 106-250-007 '6) ~e. '. :;; o I 1000 I ) .IV / i: I ~ =!If ... '" FEET Central Contra Costa Sanitary District Attachment ~ ESTERO DRIVE ALTERNATIVE DOUGHERTY VALLEY TUNNEL AND TRUNK SEWER PROJECT 1 .' '. .;L ;:", 800 600 01 ~I~ 019 .Ct: ~I~ I ~~ -------tli fAST PORTN. I I .. 700 w w ... 700 >- Preliminary Tunnel Profile \oJ \oJ ... APPROXIMATE EXISTING GROUND SURrACE Z 600 600 Z Z o .. ~ C > w oJ w 400 Tor ALCOST A 8L VO Z o 500 .. -< > \ , I I -,--' I I I \oJ ..J s . 0.73' (t) at 400 w JOe JOO PROFILE. HORIZ. SCALE: ,". 1000' VERT. SCALE: ,.. 200' Ii )1 ~..,.. i I 11 . t I K_ R.II , l11li. IIMIlT """ _ llIaulllll CIl O'MeTal " 1lII IIOllUCIJl, III IIIIll . t'_ II NtIT 1a;I~~1EH TYPlColt HOR.;E~:~ TUNNEL SECTION UI'I _In taU.UUll ~_,u. T1_ allilU.. AI llIau'''' l11li. R'I ITlP' 1111"'_1 _IE ... '101 11'''' HO DlWl PYC T~ UN.'" IAS1M eK. Ct....S IV) _IE -.tING kAl. su 1<<)11 I: FOOT aOCl W_ 11lU ..11 ... FUlL I'lllllCTlII TI.vI UN'''' ,,- "I. lUM ! 1 ~ . ! mmmrn TYPIColt CIRCUlAA TUNNEL SECTION lE1JIElIIEllIB NOT 10 sc.u sTln 'uas ANO &.AGeiNG INITI"''''''''''I plMCAST tONtMTI stCKNT UllllA&. Sl.PflCIlT SOIL CONDITIONS ALONG TUNNEL ALIGNMENT . Claystone, Siltstone and Sandstone . Classified as extremely weak or very weak rock . Squeezing ground and gassy conditions . Tunnel construction methods - Tunnel Boring Machine (TBM) - Road Header - Steel rib and timber or precast concrete rings for temporary support PROJECT EXPERIENCE STATEMENT The Bidder shall have completed one or more projects involving: . 1,000 feet of 24-inch or larger sewer using open cut construction; . 500 feet or more of 12-inch to 30- inch sewer using microtunneling pipeline construction in similar ground conditions; and . 2,000 feet or more of tunneling a 6-foot diameter or larger tunnel in similar ground conditions. .,.,__ .________,__,____....___.______.___.__~_____.M__'_"_._._._.._.".... .,"".__....... ._.._....__...,~"..,.,,_...._....__._.._.____.__..____M_._u____,.._.~.....___._,~~_____.._____,__.__. __._.._...,____,_.,.~_,,,...______.~__"__"__,__._,.~.__._,__u____.___._._~__.~___..__.m_'____ PROJECT EXPERIENCE STATEMENT ( continued) It is the intent of the District to evaluate the responsiveness of the Contractor's bid in part based on whether the bid and information set forth below reflect substantial experience in successful completion of work of the nature and magnitude of this project. BID REVIEW PROCESS · Staff conducted a technical and commercial review of bids. · Tunneling experience with Mountain Cascade bid lists 6 projects totaling 4,100 feet; longest project is 1,100 ft. · All other aspects of Mountain Cascade bid and all aspects of Affholder bid are in order. · Affholder filed protest because Mountain Cascade bid did not list a single tunnel project with length of 2,000 feet or more. · In case of protest, it is appropriate for Board to conduct a responsiveness hearing. · Staff recommendation and Board decision follows hearing. BASIS OF CONTRACT AWARD · Contract to be awarded to the lowest responsive and responsible bidder, price and other factors considered, provided the bid is reasonable, and in best interests of the District to accept it. · District reserves right to reject any or all bids and to waive any non-material irregularities in the bids received. BOARD DECISION ALTERNATIVES · Deny protest by Affholder. Declare Mountain Cascade bid to be responsive. Award contract to Mountain Cascade, Inc. · Uphold protest by Affholder. Declare Mountain Cascade bid to be non-responsive. Award contract to Affholder, Inc. · Reject all bids. Good Afternoon, My name is Richard Oliver, I am a partner with the law firm, McKenna & Cuneo and I represent Affholder, Inc. in this proceeding. On behalf of Affholder, Inc. we want to thank the District Board for granting us this opportunity to present our protest. Our position in this protest is simple. Mountain Cascade and its tunneling subcontractor, Walter C. Smith Company, Inc., did not submit a responsive bid for this project and their bid must be rejected. A responsive bid must, on its face, (Le. on the four corners of the bid only) meet all of the solicitation's requirements. Their bid does not meet the solicitation's experience requirements. These requirements are not ambiguous and they are clearly material. Thus, Mountain Cascade's bid must be rejected as nonresponsive. Mountain Cascade's bid does not meet the solicitation's express experience requirements. For example, within the last five years, they have not dug a 6-foot or larger diameter tunnel for a distance of at least 2,000 feet in similar ground conditions. The solicitation mandates "[t]o meet the experience requirement for the proposed project, the Bidder shall have completed one or more projects involving 1,000 feet of 24-inch diameter or larger sewer using open-cut pipeline construction, 500 feet or more 12-inch to 3D-inch diameter sewer using microtunneling pipeline construction in similar ground conditions, and 2,000 feet or more of tunneling a 6-foot diameter or larger tunnel in similar ground conditions." We believe and your staff agreed before the submission of bids that this experience requirement mandates that the tunneling subcontractor have excavated a large diameter tunnel of at least 2000 feet. On page seven, the Supplemental Position Paper prepared by Mr. Aim and Mr. Swanson states that the intent of the staff in drafting this solicitation requirement was that the 17098539.1 contractor should have at least one prior project of 2000 feet in length of large diameter tunneling. It states: "[s}taff suggests that the intent of Section (e) (Exhibit A) was the contractor should have at least one prior project of 2000 feet in length of tunneling with a diameter of 60 inches (sic) or greater." This is consistent with Affholder's understanding of the experience requirement. Walter Smith's lack of the required tunneling experience is demonstrated by the experience that Mountain Cascade listed for Walter Smith in its bid. Their bid listed six projects, but three of these six projects were not at least six feet in diameter. Thus, Mountain Cascade's bid demonstrates that in the last five years, Walter Smith Company has only dug three large diameter tunnels. These three tunnels had lengths of 585,655, and 1100 feet. For the 1100-foot excavation however, Smith made multiple drives, the longest of which was 400 feet. These three tunnels total only 2340 feet and the longest single drive is 655 feet. Smith's failure to meet the experience requirement of the solicitation is also acknowledged by the response of Mountain Cascade's counsel in this proceeding. In this June 27, 2001 letter, Mountain Cascade makes no claim that Smith meets the requirement of constructing a tunnel of 2000 feet. That failure is an admission that Walter Smith Company does not meet the requirement. Of course, pursuant to the solicitation, the company that is actually doing the tunneling work must have the required experience. In his comments, counsel for Mountain Cascade claims that nothing in the specification requires the contractor or subcontractor to have completed any single tunnel 2,000 feet in length and six feet in diameter over the past five years. His comments, however, provide no explanation for this startling conclusion. Mountain Cascade's counsel has apparently argued to the District's counsel that the solicitation's experience requirements are ambiguous and can be satisfied by adding up the various lengths of the large diameter tunnels that Smith has -2- constructed to meet the 2000-foot requirement. This position, however, is contrary to a reasonable interpretation of this solicitation paragraph. This section is not ambiguous. I have already noted that the staff intended that the contractor have excavated at least one large diameter tunnel of at least 2000 feet in length. The Supplemental Paper suggests .that the staff is now concerned that the requirement may be ambiguous. For this requirement to be ambiguous, Mountain Cascade's interpretation of this requirement must be a reasonable interpretation. One fundamental rule of contract interpretation is that a contract must be interpreted in accordance with its clear language. A second fundamental rule of contract interpretation is that it must be interpreted to give meaning to all of its terms. If we look at this entire paragraph, we will see that the interpretation proposed by Mountain Cascade is not reasonable or consistent with this entire paragraph. Let us review the words of Subparagraph E. The first sentence requires the bidder to submit a statement "describing work the Bidder has completed within the last five years which is similar in character to that anticipated in the proposed project." The solicitation paragraph then states that "[a] listing of three jobs is preferable." Three jobs are probably necessary to demonstrate a company's experience in the three types of construction required for this project: open cut construction, microtunneling and large diameter tunneling. The solicitation states that "[i]t is the intent of the District to evaluate the responsiveness of the Contractor's bid, in part based upon whether the bid and information set forth below reflect substantial experience in successful completion of work of the nature and maanitude of this project. This is the first reason that a combining interpretation is not reasonable. "Nature and magnitude" -3- is an important phase. A 655 foot tunnel is simply not the same magnitude as a 4600-foot tunnel. Then the paragraph states "[t]o meet the experience requirement for the proposed project, the Bidder shall have completed one or more projects involving 1 000 feet of 24 inch diameter or larger sewer using open-cut pipeline construction, 500 feet or more of 12-inch to 30-inch diameter sewer using microtunneling pipeline construction in similar ground conditions, and 2000 feet or more of tunneling 6-foot diameter or larger tunnel in similar ground conditions." (Emphasis added) Note that the word used for the 2000 feet requirement is tunnel, and not tunnels. Therefore, the required 2000 feet of tunneling experience must be accomplished in one tunnel. The paragraph then states that"... [t]unneling portions of the requirements may be met by using subcontractors meetina the minimum reauirements." Finally, it states that "... [t]ailure to complete this section may result in the bid being rejected as nonresponsive. As I will mention later the "may" language only allows the Board to accept a bid that substantially conforms to the requirement. It is also important for the Board not to be diverted by Mountain Cascade's argument from the remainder of the solicitation's experience requirements. Mountain Cascade's counsel letter focuses on trying to avoid the 2000-foot of large diameter pipe experience requirement. This letter fails even to address the fact that Smith has not performed this tunnel work in similar ground conditions. These ground conditions include gassy conditions where there is a risk of encountering Methane gas, which is highly explosive. Second, the anticipated ground conditions also include squeezy ground, which greatly hampers construction. Third, the anticipated ground conditions include a severe rock load of eight times the normal rock load, which will severely challenge the support structure for the tunnel. As indicated in Mountain Cascade's bid, in the last five -4- years, Smith has not dug in similar ground conditions and has not dug tunnels with the necessary kind of support. The Supplemental Position Paper incorrectly disregards Walter Smith's failure to meet the solicitation's requirement for experience in similar ground conditions. Although gassy conditions and squeezing ground conditions are not unique to this project, there is no evidence in Mountain Cascade's bid that Walter Smith has encountered either of those conditions in the last five years in excavating its three large diameter tunnels. Robert Stier now explains that: 1) the length of the tunnel excavation does matter with regard to a contractor's experience in excavation tunnels; 2) the significance of Cal OSHA's classification of the Dougherty Tunnel as a gassy tunnel; 3) the ground conditions as described in the Geotechnical Interpretive Report are unlike the conditions the tunneling industry has seen in this area; and 4) Affholder has completed projects of the magnitude of the Dougherty Valley Tunnel. The notes of his comments are incorporated here as Attachment A. Concerning the required support system, it is clear from Mountain Cascade's bid that it has had no experience with that type of support system in the last five years. Walter Smith has only had experience with pipe jacking, a system which is wholly inadequate where the rock load is anticipated to be eight times the normal load. The Supplemental Position Paper attempts to gloss over Smith's total lack of experience by asserting that any support system design would have to be approved by the District's tunnel consultant. The design of the support system, however, is only one of many reasons that the solicitation required this experience. Indeed, that experience will be much more important in monitoring the strength of the support system during tunnel construction to identify the development of dangerous load conditions and knowing how to respond if such conditions do occur. The Supplemental Paper incorrectly fails to -5- enforce the solicitation's requirement that the contractor have experience constructing large diameter tunnels in similar ground conditions. Finally, Mountain Cascade's letter does not address the lack of required experience for its proposed superintendent. He also does not have the project experience required by the solicitation. For each of these failures to meet the solicitation's experience requirements, Mountain Cascade's bid is nonresponsive. The Board cannot accept Mountain Cascade's nonresponsive bid. As the Supplemental Position Paper notes, the California Attorney General has stated that" a basic rule of competitive bidding is that bids must conform to specifications, and if a bid does not so conform, it may not be accepted. In accordance with the California caselaw that is cited in our letter and the caselaw cited in the Supplemental Position Paper, there are only two exceptions to the rule that a bid that does not meet the solicitation requirements must be rejected as nonresponsive. The first is that a solicitation requirement may be waived only when that requirement is not material; when there is a minor irregularity. In this case, these experience requirements are highly material for what is a difficult and dangerous tunneling project. These are not minor technicalities that we found by combing through Mountain Cascade's bid. These are the fundamental experience requirements that the District expressly put in this solicitation to ensure that it would have an experienced, capable tunneling contractor to perform this work safely and effectively. As noted in the Supplemental Position Paper, the second exception is that a bid that substantially conforms to the requirement may be accepted if the other bidders are not prejudiced. Mountain Cascade's bid, however, does not substantially conform. Mountain Cascade and Smith failed to meet these experience requirements by a wide margin. Please note that the 2000-foot experience requirement for large diameter tunnels is less than half of what is -6- required for the work on this project of 4600 feet. However, the longest experience that Smith has is 655 feet, or less than one seventh the length of this project. Moreover, Smith has not demonstrated any experience with the extreme ground conditions that would be encountered in this project. Smith also has no experience in the last five years with the support structure required for this work. Smith's superintendent does not have the required experience. Thus, what Mountain Cascade's counsel urges is not a waiver of minor requirements; this would be a total disregard for these important experience requirements. Moreover, Mountain Cascade will receive a major competitive advantage and the other bidders will be prejudiced if the District allows Mountain Cascade to use a tunneling subcontractor that does not meet the solicitation's experience requirements. We understand that Mountain Cascade included the experience sheets for several tunneling subcontractors with its bid. It eventually chose Walter Smith, probably because they were the cheapest. Mountain Cascade obtained a substantial price advantage by using this unqualified tunneling subcontractor, to the prejudice of the other bidders who proposed qualified subcontractors. Smith's lack of experience is not helped by its subsequent hiring of a consultant, Mr. Clough. As a legal matter, we note that this consultant is not mentioned in the bid and should not be considered in these proceedings. In any event, the consultant will not be at the work site everyday. He teaches two classes each semester at Stanford. His lack of attendance is particularly important. We understand that the recent, fatal accident at Dulles Airport occurred when the consultant was not present. Even if the District could legally award the contract to Mountain Cascade, the potential cost savings suggested by its lower contract price is clearly not worth the risk. Walter Smith, the tunneling contractor proposed by Mountain -7- Cascade, has not operated in anywhere near similar ground conditions. The anticipated conditions for this project are dangerous and difficult. Nor has Smith met the minimum footage of tunneling. It is as if you are finding that someone who had built a few houses is qualified to build a 20-story high-rise. In the last five years, Affholder has excavated more than fifty times as much large diameter tunnel as Walter C. Smith Construction. That is relevant because of the limited working experience of Walter Smith's current crew. I also must note for you that if the District ignores the experience requirement and award the contract to Mountain Cascade and if, God forbid, there should be an accident at the tunnel work, the District will be legally very vulnerable. The plaintiff's counsel in some subsequent lawsuit will be very pleased to find out that this District Board ignored the minimum experience requirement contained in the solicitation and selected an inexperienced contractor who did not meet those qualifications. For all of these reasons, this Board must reject the bid of Mountain Cascade and award the contract for this project to Affholder, Inc. Thank you for your time and consideration of this protest. -8- ATTACHMENT "A" Magnitude of the Dougherty Valley Tunnel . Length does matter with regard to experience in the excavation of tunnels. o CalOSHA has stated that when excavating tunnels greater then 4000 feet in length, additional requirements must be met for the protection of the employees underground. · Refuge chambers · Additional fire protection equipment · Employee safety areas that are out of the way of the muck haulage equipment are required o Additional requirements for haulage equipment must be utilized to keep productivity at a proper rate. · Switches, and two to three trains will need to be used to keep productivity at an average required to complete the project on time. . CalOSHA has classified the Dougherty Tunnel as a "Gassy" tunnel. This means that there is a good chance of encountering methane gas, which could cause an explosion while working in the tunnel. o Affholder has completed three major tunnel contracts in California. None of these tunnels have been classified as "gassy" o Special requirements need to be met to work in a tunnel that is classified as gassy. · Special Lighting and light line must be used that meets Class I, Division II Electrical Requirements. · Special Ventilation equipment meeting Class I, Division I Electrical Requirements with the ability to increase the ventilation from 200 feet of air per minute to 300 feet of air per minute within the tunnel must be used. Standard Ventilation Systems are Class I, Division II and must move 60 feet of air per minute. · Special tools that are non-sparking need to be used so that an explosion cannot occur when gas is encountered. · Spoil haulage equipment must have special starters so that an explosion will not occur when the locomotives are started. . The Geotechnical Design Baseline Report indicated that rock loads that are eight times the standard loads could be encountered within the tunnel excavation. This means that heavier then normal steel ribs and wood lagging supports are required to withstand the loads that will be reacting against the supports. The Baseline Report also indicated that Squeezing Rock would be encountered while excavating the tunnel. . Ground Conditions as describe in the Geotechnical Interpretive Report (GIR) are nothing like the tunneling industry has seen in this area. o The tunneling contractor that is excavating the tunnel should have installed a similar support system within the past five years. The tunnel contractor that is awarded this contract should have installed a steel tunnel rib with wood lagging support system or a precast concrete segment support system within the last five years. o Rock Loads of almost 12,000 Ibs may react on the tunnel support system. Rock can point load a tunnel support system, where as it is more difficult for soft ground to point load a tunnel support system. · A team of knowledgeable underground miners and laborers must be present during working hours to ensure the support system does not fail. They will be checking for movement of the support systems not just at the locations required by the design engineer but at any points they believe to be taking a heavy load. · A knowledgeable tunnel superintendent must be on site to make the proper decisions with regard to a support system that is being overstressed. Should you make the spacing of the supports closer? · If rock conditions are encountered as described in the Geotechnical Design Baseline Report, the contractor must know what to look for to see if the tunnel supports are taking a heavy load. The tunnel contractor must know how to react to a support system that may be failing. If the contractor has not installed these support systems 8 to 10 worker may be trapped from a collapse. o Walter C. Smith has not installed a ring beam and lagging tunnel in the past five years. o Squeezing rock may cause the tunnel-boring machine to become stuck and unable to move forward. · As indicated in the contract specification 02300 Tunneling "the contractor must be prepared to work around the clock to prevent the tunnel boring machine from becoming stuck." . Experienced TBM operators with years of experience are required since they know when the TBM is reacting differently to squeezing ground conditions. Affholder has completed projects of the magnitude of the Dougherty Valley Tunnel. o Hilltop Interceptor Contract H-3 had to be evacuated five times during the tunnel excavation due to methane gas. A Superintendent has to have the experience and respect for methane gas in tunnels that are "gassy". This tunnellike the Dougherty Valley tunnel reached depths of over 230 vertical feet. o Coldwater Creek Outfall Phase I had tremendous rock loads imposed on the support system. The Clay filled cavities that were encountered caused heavy rock loads to point load the ring beam and lagging tunnel support system. Steps had to be taken to protect workers and keep the tunnel from collapsing. o Bradshaw Interceptor Section 5 was tunneled from one portal 10,200 feet using steel ribs and wood lagging for supports through cemented sands. CalOSHA required special conditions due to the length of tunnel and support system installed. o Folsom Interceptor Section 2b was completed using steel ribs and steel lagging for support of mixed face conditions including rock, boulders and sands and gravel. Walter C. Smith Contracting, Inc. has only completed tunnels of the diameter required in experience requirement statement. URS Memorandum Date: July 5, 2001 To: Curt Swanson From: David Young, Project Manager ~~ Sheldon Coudray, Senior Consultant '5 C ~ .j)g. Subject: Evaluation of Bidders Qualifications for Dougherty Valley Tunnel and Trunk Sewer, D.P. 5902 This memorandum summarizes our professional opinion regarding Walter C. Smith's fulfillment of experience-based bidding requirements. It has been prepared in response to a bid protest filed on behalf of Affholder, Inc. We believe we are qualified to provide such opinion because Mr. Young is tunnel specialist with 13 years of tunnel experience, and the project manager responsible for the design of the Tunnel. Mr. Coudray is a senior consultant with URS who has over 40 years of experience, much of it tunnel construction in California. Mr. Coudray's resume is attached to this memo for reference. The experience statement included in the bidding requirements for the project requires that: ''the bidder has completed within the last five (5) years [projects] which are similar in character to that anticipated in the proposed project," and that "the bidder shall have completed one or more projects involving ... .... and 2,000 feet or more of tunneling a 6-foot diameter or larger tunnel in similar ground conditions. " These qualification requirements for "similar in character", "length and size" and "similar ground conditions" are discussed separately below: Similar in Character - The Dougherty Valley Tunnel will be excavated by a specialized tunneling machine in a geologic formation known as the Orinda Formation. This Formation is on the border between rock and soil in terms of strength. The strength of the samples from the Orinda Formation is anticipated to be similar to stiff and hard clays, and to extremely weak rock. W.C. Smith shows experience with excavating tunnels using specialized tunneling machines in ground with similar strength. Len2th and Size - In support of their bid and in response to the bid protest, W.C. Smith indicate they have successfully completed 7,279 lineal feet of various tunneling projects ranging in size from 72 inches in diameter to 156 inches in diameter. The longest tunnel is about 1,100 feet. While no single tunnel is of a length greater than or equal to 2,000 feet, there is no technical difference between construction of a tunnel that is 1, 100 feet and one that is 2,000 feet. Similar Ground Conditions -In Affholder's protest documents, methane gas, "extreme" rock loads and squeezing ground are mentioned as project specific concerns. W. C. Smith has experience with gassy tunnel conditions. Their vice president and operations manager is a certified CaVOSHA gas tester. Thus W.C. Smith's experience in similar gassy tunnels is documented. CaUOSHA will also have an active role in enhancing the safety of the work. Equipment requirements for gassy tunnels are established and regulated by CaVOSHA. All equipment used in the tunnel will be specially designed for the gassy envirorunent, and CaUOSHA will make tunnel inspections to aid in enforcement of safety requirements. A:\Ietter for dougherty bid onaIysis-julyS.doc 7/5101 URS Page 2 of2 Ground loads specified for the Dougherty tunnel are based on anticipated squeezing loads and swelling pressures. Squeezing loads are anticipated based on an evaluation of the relationship between overburden pressure at tunnel depth and the strength of the rock. Based on a similar evaluation of overburden pressure and ground strength, it is very likely that many of the projects listed by W.C. Smith also encountered squeezing conditions. For example, tunnel projects in Bay mud often encounter squeezing conditions due primarily to the low strength of the Bay mud. The high ground loads specified for this project will dictate the use of closely spaced or continuous tunnel supports. However, there is not anticipated to be a substantial difference in skill and workmanship necessary to install these supports compared to a tunnel with lower loads. The difference may only be in the spacing between supports. Conclusion In support of their bid protest, Afiholder suggest shortcomings in level of experience ofW.C. Smith's personnel and experience with temporary tunnel support systems. The bidding requirements do not include specific qualifications requirements for the tunnel contractor's personnel, nor for experience with temporary tunnel support systems. Nevertheless, W.C. Smith has access to expertise in these areas through use of consultants and new hires. W.e. Smith proposes to use Russell G. Clough who shows substantial tunnel experience on his resume. It is our professional opinion that W.C. Smith meets the qualifications requirements for bidding, with respect to character of the work, cummulative length of tunnel constructed, and similar ground. Further evaluations of personnel qualifications, and construction methods will be addressed post-award through the shop drawing review process. Attachment Resume of Sheldon Coudray / ~lIeldoD V. Coudray Senior Consultant AREAS OF EXPERTISB . Tunnels, Dams . Construction Engineering . Cost Estimating and Engineering . Construction Consulting . Expert Witness EDUCATION Rutgers University, Newark College of Engineering: B.S., Civil Engineering, 1950 Rhodes Institute of Technology, New York City, New York: A. A., Science and Mathematics, 1946 REGISTRATION Certified Cost Engineer, 1968 (CCE 02423) Certified Professional Estimator, 1985 (CPE CED 1.4) Licensed General Engineering Contractor, 1975 (#310955) PROFESSIONAL HISTORY Woodward-Clyde Consultants, Senior Consultant, 1990-date Independent Construction Consultant, 1985-1990 Various Contractors, Consulting Engineering Woodward-CIyde Q REPRESENTATIVE EXPERIENt"E Mr. Coudray specializes in construction management services to water resources projects, including dams and tunnels, large civil projects, such as highways and railroad construction, and sewage and water treatment plant facilities. He has extensive experience in the construction industry throughout the United States. His experience spans 40 years in field engineering, supervision, and management, in addition to office positions involving project administration and estimating. Mr. Coudray's area of expertise include construction engineering, planning, feasibility studies, scheduling, cost control, value engineering, and professional estimating. Mr. Coudray has served in an advisory capacity in his areas of expertise on many projects. At present he is on an Advisory Panel for the design of the Richmond Transport Tunnel, a wastewater tunnel in San Francisco, and he is a member of the Technical Evaluation Board established by the Metropolitan Water District of Southern California. He recently provided technical input and review comments as a special consultant for feasibility studies, preliminary design, and construction cost estimates on the proposed Los Vaqueros Project (including a diversion tunnel) for the Contra Costa County Water District. Other projects on which Mr. Coudray has been involved as a construction consultant to various design teams regarding feasibility, planning, and cost information include: . Dams and Related Construction Oroville Dam and tunnels, Oroville, California Union Geothermal Dam and tunnel, Big Sulphur Springs, California High Tongue River Dam and tunne~ Decker, Montana - Warm Springs Dam, Hea1dsburg, California Lake Stafford Dam, Novato, California - Main & Saddle Dams and tunne~ South Fork Project, Elko, Nevada - Long Valley Dam, L.A. Dept. of Water and Power, Los Angeles, California - Saw Pit Dam, L.A. Dept. of Public Works, Los Angeles, Y:'-mar1<el\RESUMES\Olhef 0lIiceslCoudraylcoudray.docl27 -OCT.99IOAK I SbeldoD I. Coudray Senior Consultant Firms and Owners, 1950- 1985 AFFIUA TIONS American Association of Cost Engineers American Society of Professional Estimators Society of American Military Engineers Structural Engineers Association of Northern California Society of American Value Engineers Order of the Engineer California - Los Angeles River Greenbelt Project (mcluding tunnel), Los Angeles, California - Los Vaqueros Dam and tunneL Contra Costa County, California - Eastside Reservoir Project (including tunnel), Southern California Municipal Water District · Hazardous WastelRemedial Action Plans - Advanced Micro Devices, Sunnyvale, California - Confidential Client, East Palo Alto, California - USMC Training Center, Bridgeport, California - USN Ames Research Center, Moffett Field, California - Intersil Manufacturing Facility, Cupertino, California · Earthquake Studies/Earth Slides - Inverness Slide Reconstruction Study, Marin County, California - Seismic Studies by Base Isolation, USN Post Graduate School, Monterey, California - Seismic Strengthening Alternatives for: IBM, Sunnyvale, California Long Beach Naval Shipyard, Long Beach, California University of California, Berkeley and Los Angeles, California Vesper Hospital Earthslide, Oakland, California Lauralwood Slide, San Mateo, California · Other Projects - Via Gavota Ocean Seawall, Aptos, California - Sea Wall Repairs, Naval Air Station, Alameda, California - Value Engineering Study, Navy Support Facility, Diego Garcia, B 10-P065 - Union Oil Refinery Industrial Waste Collection System, including Ocean Outfall - Geothermal Exploration & Environmental Impact Woodward-CIyde Q Y:'-mar1<etIRESUMES\Olhef 0IIicesICoudraylcoudray.docI27.QCT.99IOAK 2 / Sbeldon V. Coudray Senior Consultant Report, Hilo, Hawaii Mr. Coudray has also been engaged as a consultant and an expert witness in litigation cases involving construction disputes. These have included: · Expert WitnesslLegal Advice Wheeler Ridge Maricopa Water District vs. Techite Pipe Placer County Water District vs. Contractors & Surety Guerneville Sanitary Collection System, Sonoma County vs. Engineer, Contractor & Surety Rossmoor Reconstruction Project, Rossmoor vs. Developer, Builder & Surety Mr. Coudray was involved in the identified management capacity on the following recent projects. · Resident Engineer for construction of Goodwin Tunnel at Knights Ferry, California. This 14-foot-diameter, 3-mile- long water tunnel taps into an existing reservoir on the Stanislaus River, behind Goodwin Dam. The tunnel was mined with both a tunnel boring machine and conventional drill and blast mining due to wide variation in the subsurface geologic conditions. · Project Manager and Senior Engineer for construction of EI Camino Del Cerro Landfill, Pima County, Arizona. On numerous other projects Mr. Coudray served in various active management capacities. A sample listing of those projects is provided below, each starting with Mr. Coudray's role. · Project engineer on the Western Pacific Railroad Relocation Project, Oroville Dam, in Northern California. This 30-mile railroad relocation project included approximately 4-miles of rock tunneling, 19 overpass bridges, and numerous utility relocations. · Project engineer on the Conway Summit Project in Bridgeport, California. The major relocation of a portion of Highway 395 involved a massive earth moving project which included the drilling and blasting of approximately 6.5 million cubic yards of rock and related construction. . Project superintendent on numerous sewage and water WoocJward.CIyde Q Y:'-mar1<el\RESUMES\OIher 0lIicesICoudray\coudray.docl27-OCT -99IOAK 3 ;" / SbeldoD V. Coudray Senior Consultant treatment plant construction projects. Prepared bid estimates to obtain the projects. Then as Project Superintendent, supervised the construction in the field. The projects were for the California cities of Vallejo, Crockett, Rodeo, San Pablo, Brisbane, Union City and San Luis Obispo. · Project engineer on the second span of the Carquinez Bridge in Crockett, California; in charge of the construction of the offshore deep water caissons. This involved fabrication and assembly in drydock, towing, berthing and landing procedures prior to the construction of the super-structure. · Project engineer on the Bowery Bay Project, a sub- aqueous compressed air tunnel under the East River between Long Island City and Manhattan, New York. This difficult, mixed-face tunnel was driven by alternating between a jumbo drill and a soft ground shield. · Project superintendent on a coal-fired power plant in Wauwatosa, Wisconsin. In full charge of the total project including bringing in 1.5 miles of railroad spur to service the completed plant. · Project engineer on the lower Miami Valley Master Sanitary Collection and Treatment Facilities covering both Campbell and Kenton Counties in Northern Kentucky. This multi-million dollar project took 4 years to construct, involving 24 miles of collector lines, including 15 miles of tunnels for the most part driven through the clay formation by the compressed air method, as well as numerous lift stations; pumping plants all ending at a master treatment plant in Bromley, Kentucky. · Project engineer on the Ohio River Flood Wall Project. Constructed under the direction ofthe U.S. Army Corps of Engineers at the intersection of the Licking and Ohio Rivers in Newport, Kentucky. · Chief estimator for a major West Coast designlbuild firm specializing in the design and construction of industrial, chemical and petrochemical facilities. · Cost estimator for the Getty Museum drainage tunnel in Los Angeles, California, which is in soft rock, 1,200-foot- long, 14 feet in diameter. · Cost estimator and constructability reviewer for the Woodward-CIyde " Y:'-mar1<el\RESUME~ OIfices\Couclraylcoudray.docI27-OCT.99IOAK 4 I SbeldoD I. Coudray Senior Consultant Mission Tunnel Rehabilitation Project in Santa Barbara, California. Repair portions of 19,000-foot-Iong, 6-foot- diameter tunnel. Woodward-CIyde .. Y:Unar1<el\RESUMES\Olhef Offiees\Coudraylcoudray.d0c\27 -OCT.99\OAK 5 TUNNEL EXPERIENCE STATEMENT IN BID PROPOSAL . 2,000 feet of 6 foot or larger diameter tunnel in similar ground conditions. . Intent was that this be 2,000 continuous feet. . Mountain Cascade interpreted experience to be a cumulative 2,000 feet. . Because of this ambiguity, staff and District consultants reviewed Walter C. Smith experience. . Technical consultants were Mike Kobler of UCM and Dave Young and Sheldon Coudray of URS Corporation. REVIEW OF WALTER C. SMITH EXPERIENCE · Completed approximately 32,000 feet of tunnels with diameter 6 feet or larger during last 20 years. . Completed approximately 7,300 feet of tunnels with diameter 6 feet or larger during last 5 years. · Longest single tunnel was 1,115 feet during last 5 years. . Completed tunnel projects in ground conditions similar to Dougherty Tunnel Project. . Walter C. Smith has sufficient experience to construct Dougherty Tunnel Project. . ____._____"__.____._______________~_..__.,_,,~._'t--,-.-_". ___.0___.________.._...........".....----/-.-___,_ TUNNEL CONSTRUCTION METHODS, EQUIPMENT, AND PERSONNEL . Technical specifications of contract documents specify construction methods, materials, equipment, and personnel for tunnel construction. . This information was not required as part of the bid proposal. . Consequently, this information is not an issue to be considered during Bid Award. . Contractor to provide information within 30 days of Notice to Proceed. . District reviews, comments, and accepts as part of "Shop Drawing" submittal review process. ____________.'._,_.__._"__..' ____,..._._.__,~..___._..__.____.__.,_____.__~___..__.___.__.~.___..__._,_._."__,_._,_.__._____~____________--...-__..___._._._,.____"_...._,_,.,"..,_.".__--l---~,._.._ STAFF RECOMMENTATIONS · Deny protest filed by Affholder, Inc. · Award construction contract to Mountain Cascade, Inc. · Award be contingent upon approval and signature of Win.demere financing agreement under Board Agenda Item 8.a. · Authorize consulting agreements with - Brown & Caldwell - URS Corporation - EPC / Underground Construction Managers - SOHA Engineers MICHAEL KOBLER Michael Kobler has over 20 years of experience in tunneling and underground construction as construction manager, resident engineer, cost estimator scheduler and consultant. He has worked on a variety of project types such as soft ground and hard rock tunnels and shafts, underground stations and powerhouses and tunnel remediation. His extensive tunneling equipment experience includes NATM, cut and cover, tunnel boring machines, earth pressure balance machines, soft ground diggers, and drill and blast. He has experience in all aspects of construction management, including constructability evaluation, documentation of job progress, processing progress payments, negotiation of change orders and contract administration. YEARS OF EXPERIENCE: 20 YEARS OF TUNNEllUNDERGROUND EXPERIENCE: 20 EDUCATION · B.S. Mining Engineering with Management Option, Montana School of Mines REGISTRATIONS · Licensed Blaster, California PUBLICA nONS · "Lake Merced Transport- Tunneling Through a Differing Site Condition ", MJ. Robison, M.B. Kobler, J. Cheung, and J. Chia, Proceedings of the 1993 Rapid Excavation and Tunneling Conference. · "Tunnel Planning in Urban Areas" MJ. Robison, G.S. Brierley ,and M.H. Kobler Proceedings of 1 (jh Annual Canadian ' Tunneling Conference 1992. AFFILIA TIONS/CERTIFICA TIONS · Co-Chairman "Ground Modifications ", Rapid Excavation and Tunneling ConferenceJ999. · Co-Chairman "Shafts and Raises ", Rapid Excavation and Tunneling Conference 1997. ucm, inc. Construction Manager Inland Feeder Project, San Bernardino, CA Mr. Kobler is Construction Manager for the design and construction phases of the Inland Feeder Project which consist of 90,000 linear feet of 14- foot diameter finished tunnel. Mr. Kobler provided an evaluation of designs, costs and construction means and methods throughout the design phase. During construction, Mr. Kobler is providing construction management services. Tunnel Monitor Metropolitan Transportation Authority, Los Angeles, CA Mr. Kobler is serving as an independent tunnel monitor to insure compliance with environmental constraints regarding groundwater, seasonal springs and blasting on the Hollywood Hills tunnel segment. His duties included reviewing pre-and post-excavation grouting procedures, and groundwater monitoring. Technical Advisor The Islais Creek Transport Contract D, San Francisco, CA Mr. Kobler provided construction support for 920 linear feet of30-foot wide transport/storage box sewer, 490 linear feet of 42-foot wide transport/storage box sewer with overflow weir structure and 820 linear feet of 96-inch diameter reinforced concrete pipe. Resident Construction Manager Richmond Transport Tunnel, San Francisco, CA Mr. Kobler reviewed preliminary contract plans and specifications for constructability. He was responsible for managing the Richmond Transport Tunnel which consisted of 10,200 linear feet of 14- foot diameter waste water storage tunnel, an underground overflow system tying into an existing outfall tunnel and a 10- foot diameter connector. He supervised a staff of 15 professionals that managed the construction associated with the connector tunnels overflow system and ancillary work. Resident Construction Manager Lake Merced Transport, San Francisco, CA Mr. Kobler provided construction management services during the construction of 8,500 linear feet of 14-foot diameter combined sewer and MICHAEL KOBLER PAGE 2 RESUME ucm, inc. storm water overflow tunnel for the City and County of San Francisco's Clean Water Program (CWP). Responsible for construction management, contract administration, project engineering and inspection. Coordinated construction activities with adjacent CWP projects and interfaced with adjacent third parties. Assistant Project Manager Yacambu-Quibor Irrigation Project, Venezuela This project consisted of2-kilometers of inclined tunnel, excavated using drill and blast and road headers methods through squeezing ground which was supported by rock bolts, shotcrete and steel sets. The project utilizedNA TM principals. The project also included rehabilitation of 500- meters of rock tunnel in squeezing ground. Duties included supervision of mining crews, preparation of submittals, field engineering, labor and contract negotiations and contract administration. Project Superintendent WMATA Contract F4 Anacosta River Crossing, Washington D.C. This project consisted of twin 2,500 linear feet of 17-foot diameter single pass tunnels driven through saturated sands and gravels with an earth pressure balance machine. Mr. Kobler was responsible for all aspects of construction in the field, including labor, equipment, material, production and safety. Project Engineer WMATA Contract F3A M Street Tunnels, Washington D.C. This project consisted of twin 2,200 linear feet of 17-foot diameter single pass tunnels driven with an earth pressure balance machine equipped with rock cutters. Mr. Kobler was responsible for preparation of bid estimates, mobilization, construction schedules and submittals. Manager-International Purchasing, Senior Estimator and Superintendent Torno America, San Francisco, CA Mr. Kobler was responsible for source development, vendor selection, negotiation of contracts, acquisitions, supplier delivery, performance and compliance. As Senior Estimator, prepared complete cost estimates for heavy construction bids throughout the United States, including hydroelectric, underground tunnels and MICHAEL KOBLER PAGE3 RESUME ucm. inc. stations, cut and cover, earth moving and pipeline projects. Mr. Kobler was also Superintendent responsible for construction of Phase I of the La Grange Tunnel in Modesto, CA. Cost and Schedule Engineer Harrison Western Corporation, Denver, CO Mr. Kobler was responsible for monitoring job costs, progress and construction engineering support for various tunnel projects. Superintendent Traven Boa Project, Dominican Republic This project consisted of 1,000 linear feet drainage adits, 30-feet in diameter, 3,OOO-feet of diversion tunnel, portals and concrete structures. The adit and diversion tunnels were driven using drill and blast and roadheaders with support provided by rock bolts and shotcrete. Mr. Kobler's duties included supervision of the tunnel crews during mobilization, tunnel excavation and final lining. SELECTED CONSULTING POSITIONS Sonoma County Water Agency Evaluation of tunneling options for water collection. Rio Saavedra-Moran Tunnel Safege Montgomery Evaluation of differing site conditions for a claim. Dougherty Valley Tunnel Central Contra Costa Sanitary District Performed peer review of preliminary and final design. Hollywood Water Quality Improvement Project Los Angeles Department of Water and Power Performed peer review of design. Northside Storage Tunnel Montgomery Watson Australia Provided consulting on tunnel issues related to subaquous river crossing. South Bay Ocean Outfall Sverdrup/Kaiser Provided consultation regarding perfonnance of EPB ucm, inc. MICHAEL KOBLER PAGE 4 RESUME Taipei Metro Morrison Knudsen Performed evaluation of grouting option and EPB machine. 2nd Street Tunnel Consoer Townsend Envirodyne Engineers Performed constructability review. Ml Motorway Jacobs Associates Provided cost estimate. Sunnyvale Sewer Improvements City & County of San Francisco Performed preliminary feasibility study and cost estimate. Richmond Transport Facilities City & County of San Francisco Performed constructability review. Eagle Mountain Seismic Retrofit Metropolitan District of Southern California Performed evaluation of differing site conditions claim. Islais Creek Tunnel Jacobs Associates Provided evaluation of construction means and methods. Wine Cave Expansion Robert Sinskey Vineyards Performed construction oversight. MTA Universal Studios Performed evaluation of settlement/ground response to tunneling. Spring Mountain Winery Nordby Wine Caves Performed evaluation of ground conditions. Lake Matthews Intake and Outtake Structure Jacobs Associates Provided review of construction means and methods. UCffi, mc. MICHAEL KOBLER PAGES RESUME Narragansett Bay eso Jacobs Associates Performed 30% constructability review. Inland Feeder Project Jacobs Associates Performed evaluation of portal selections and provided feasibility study and cost estimates. Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 8.a. ENGINEERING Type of Action: AUTHORIZE AGREEMENT Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH WINDEMERE BlC lAND COMPANY llC FOR CONSTRUCTION FINANCING OF THE DOUGHERTY VAllEY TUNNEL AND TRUNK SEWER (DISTRICT PROJECT NO. 5902) Submitted By: Jarred Miyamoto-Mills Principal Engineer REVIEWED AND RECOMMENDED FOR BOARD ACTION: Initiating Dept./Div. : Engineering/Environmental Services K. Aim C. Swanson aus:,1 ~ ~v J. Miyamoto-Mills Vly~ ISSUE: The District's August 3, 1998, agreement ("initial agreement") with the Dougherty Valley developers for planning, design, property rights acquisition and construction of the Dougherty Valley Tunnel and Trunk Sewer requires that the District and the developer is designated as "installer" execute a financing arrangement for construction of the project. RECOMMENDATION: Authorize the General Manager to execute an agreement with Windemere BlC land Company llC ("Windemere BlC") for construction financing of the Dougherty Valley Tunnel and Trunk Sewer (District Project No. 5902). FINANCIAL IMPACTS: The Post-bid Preconstruction Cost Estimate for the project including all planning, predesign, design, property rights acquisition, construction, contract administration, construction management, inspection, testing, consultation, a fifteen percent contingency allowance, and other incidental costs is $19,238,000 assuming that the construction contract is awarded to Mountain Cascade, Inc. (see Attachment 1). Of this amount, Windemere BlC has reimbursed the District $1,630,333 for project costs, and reimbursement fees collected from connectors in the Lawrence Road area for the project total $421,400 through May 2001. The proposed agreement requires that Windemere BlC, prior to award of the construction contract, place the remainder ($17,186,267 based on award of the construction contract to Mountain Cascade; if the construction contract is awarded to Affholder, this figure will be revised in accordance with Affholder's bid) in an escrow account on which the District can draw to pay project costs as they are incurred. The funds will come from the proceeds of assessment district bonds for Dougherty Valley infrastructure sponsored by the Association of Bay Area Governments (ABAG). This arrangement will ensure that current and future CCCSD 6/29/01 U :\PPR\J B\ConstructionFinanPPR. wpd Page 1 of 6 POSITION PAPER Board Meeting Date: July 5, 2001 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH WINDEMERE BlC lAND COMPANY llC FOR CONSTRUCTION FINANCING OF THE DOUGHERTY VAllEY TUNNEL AND TRUNK SEWER (DISTRICT PROJECT NO. 5902) customers will have no financial responsibility for project costs, as was contemplated in the initial agreement. AL TERNATIVES/CONSIDERATIONS: Several alternative payment security approaches were considered by District staff and Windemere BlC including a payment bond, irrevocable letter of credit, or other form of escrow account or cash deposit. BACKGROUND: On September 4, 1997, the Board of Directors approved the Specific Facilities Plan for Wastewater Utility Service to Dougherty Valley and Tributary Properties, and determined that construction of a new gravity tunnel and trunk sewer between the valley and CCCSD's existing San Ramon Pumping Station is the most appropriate means for extending service to the area. The General Development Standards established by the Board's approval of the Specific Facilities Plan require that 1) the District design and construct the tunnel and trunk sewer due to the special nature of the work and the critical reliability criteria for the facilities, and 2) the planning, design, construction, and property rights acquisition for the project be financed by the developers without financial risk to CCCSD's current or future customers. An initial agreement between the District and the developers covering the planning, design and property rights acquisition for the project was executed on August 3, 1998. Through May 2001, approximately $1.63 million has been spent by the District and reimbursed by Windemere BlC under the terms of the initial agreement. Another item on today's agenda recommends that the Board award a construction contract for the project contingent on execution of the proposed construction financing agreement. The initial agreement with the developers required that a financing arrangement for the construction stage be executed prior to District's commitment of resources to construction. District Counsel and staff have negotiated an agreement with Windemere BlC for payment of the project's construction, contract administration, construction management, inspection, testing, consultation, and other incidental costs plus a fifteen percent contingency allowance. The total amount of these costs is estimated to be $17,607,667. The recommended agreement includes the following terms and conditions: . The District will publically bid, contract for, and oversee the construction of the project. 6/29/01 U: \PPR\J B\ConstructionFinanPPR. wpd Page 2 of 6 POSITION PAPER Board Meeting Date: July 5, 2001 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH WINDEMERE BLC LAND COMPANY LLC FOR CONSTRUCTION FINANCING OF THE DOUGHERTY VALLEY TUNNEL AND TRUNK SEWER (DISTRICT PROJECT NO. 5902) . The District will use its own staff and qualified consulting firms to manage the work, will administer the construction and consulting contracts, and make progress payments to contractors and consultants. . The District will acquire property rights needed for the project. . Windemere BLC will be regularly informed of project status and their representatives will be included in project team meetings. . The work products and facilities constructed will be the property of the District. . The District will cooperate with Windemere BLC to provide limited temporary sewer service to homes that connect prior to the completion of the project. Windemere BLC will pay all design, construction, operations and maintenance costs of the temporary facilities. . Windemere BLC will place $17,186,267 (based on award of the construction contract to Mountain Cascade) in an escrow account on which the District can draw for reimbursement of one hundred percent of project costs as they are incurred. If the construction contract is awarded to Affholder, this figure will be revised in accordance with Affholder's bid. . The District will deposit the total amount of reimbursement fees collected from Lawrence Road area connectors for the project ($421 ,400) in the escrow account. . Windemere BLC will place additional amounts in the escrow account if the total cost estimated for completion of the project should exceed the amount remaining in the account at any time. . Windemere BLC indemnifies the District from claims, demands, liabilities, damages, losses, penalties, costs, charges and expenses (including attorney's fees) that may be incurred as a consequence of the project. . The District will proceed immediately and diligently with the work. 6/29/01 U :\PPR\J B\ConstructionFinanPPR. wpd Page 3 of 6 --"..,_._,--,~..,.__.__._,,_.--_..._---_._--_._'".._--_._~-_._-----,-------,,--_.,,_.._.~-_._----..--- .--.-,.----.------.-.,..-...--.- POSITION PAPER Board Meeting Date: July 5, 2001 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH WINDEMERE BLC LAND COMPANY LLC FOR CONSTRUCTION FINANCING OF THE DOUGHERTY VALLEY TUNNEL AND TRUNK SEWER (DISTRICT PROJECT NO. 5902) . The agreement is binding on any successors to Windemere BLC should the property be sold or otherwise transferred to a different party. The District's approval is required prior to assignment of the agreement. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute the proposed agreement with Windemere BLC Land Company LLC (IIWindemere BLCII) for construction financing of the Dougherty Valley Tunnel and Trunk Sewer (District Project No. 5902). 6/29/01 U :\PPR\JB\ConstructionFinanPPR. wpd Page 4 of 5 ATTACHMENT 1 Dougherty Valley Tunnel and Trunk Sewer CCCSD Project No. 5902 Post-Bid Preconstruction Cost Estimate 1. Construction . Contract - Mountain Cascade, Inc. $12,274,620' . Contingency @ 15% 1,841,380 . Incentive for Early Completion 150.000 Subtotal: $14,266,000 2. Construction Management . Project Management 263,000 . Contract Administration 128.000 Subtotal: 391,000 3. Consultant Contracts . Engineering and Inspection 850,000 . Geotechnical/Structural Engineering 150,000 . Tunnel Specialty Inspection 430,000 . Preconstruction Damage Assessment 60,000 . Materials Testing 50,000 . Surveying 30,000 . Air Quality Monitoring 25,000 . Noise/Vibration Monitoring 25,000 . Miscellaneous (Traffic, Safety, Arboristl 20.000 Subtotal: 1,640,000 4. Miscellaneous . Community Liaison 150,000 . Public Relations 53,000 . District Surveying 1 0,000 . Legal 50,000 6/29/01 U :\PPR\J B\ConstructionFinanPPR. wpd Page 5 of 6 ____,_..._______.'"m^_~_._'".___..__~._'"....,____,.."..___' ._ ,._...,_.___._~___~__._m_____'________'~___________. ATTACHMENT 1 (contim.led) Dougherty Valley Tunnel and Trunk Sewer CCCSD Project No. 5902 Post-Bid Preconstruction Cost Estimate 5. Miscellaneous (continued) 6. 7. 8. 8. . . . . . . . . . Dispute Review Board District Operations Departments City of San Ramon Inspection County Inspection District Engineering Support Field Office Secretary Field Office/Vehicle - Lease & Utilities Field Office Support Right of Way (Staging Area) 50,000 40,000 100,000 30,000 1 0,000 50,000 60,000 22,000 25.000 Subtotal: 650,000 Public Bid Process (Estimated Costs for June 2001): 225,000 Subtotal - Items 2 thru 5: 2,906,000 Contingency - Items 2 thru 5 @ 15 %: 435,667 Pre-Bid Expenditures (thru May 2001): 1,630,333 TOTAL PROJECT COST ESTIMATE: $19,238,000 9. Less Windemere BlC reimbursements thru May 2001: (1,630,333) 10. Amount needed to complete project: 17,607,667 (421,400) 11 . less amount from Reimbursement Account: 12. Required amount for Windemere BlC to requisition from ABAG Bonds: $17,186,267 'For purposes of this calculation, the bid amount of Mountain Cascade has been assumed. If the award is made to Affholder, this figure and the contingency will be modified in accordance with the amount of the Affholder bid. 6/29/01 U: \PPR\J B\ConstructionFinanPPR. wpd Page 6 of 6 "~"."_.__ ~___.~_.__."_..___._...~._.__.,___.._..,__.__."____~__.___"__._______.__._~_____."'.____.___"~---~..----.~---'-m.... <._ AGREEMENT BETWEEN CENTRAL CONTRA COSTA SANITARY DISTRICT and WINDEMERE BLC LAND COMPANY LLC FOR CONSTRUCTION FINANCING OF THE DOUGHERTY VALLEY TUNNEL AND TRUNK SEWER (DISTRICT PROJECT NO. 5902) This Agreement is made and entered into this _ day of July, 2001, by and between Central Contra Costa Sanitary District ("CCCSD"), a California special district, and Windemere BLC Land Company LLC ("Windemere"), a California limited liability company. RECITALS A. WHEREAS, Windemere is the owner of certain land in an area known as Dougherty Valley in Contra Costa County, California shown schematically in Exhibit A attached hereto ("Windemere Property") upon which Windemere has processed entitlements for the construction of major residential and commercial development projects; and B. WHEREAS, Shapell Industries of Northern California, a California corporation and a division of Shapell Industries, Inc., a Delaware corporation, ("Shapell") is the owner of certain land in an area known as Dougherty Valley in Contra Costa County, California also shown schematically in Exhibit A attached hereto ("Shapell Property") upon which Shapell has processed entitlements for the construction of major residential and commercial development projects; and C. WHEREAS, Windemere Ranch Partners ("WRP"), Windemere's predecessor whose rights and obligations have been assumed by Windemere, along with Shapell, and CCCSD previously entered into an agreement for the planning, design, property rights acquisition, and construction of tunnel and trunk sewers dated August 3, 1998 ("Initial Financing Agreement"); and D. WHEREAS, Windemere will be the Installer, as that term is described and used in the Initial Financing Agreement; and Page 1 of 18 Doc # 252129v.6 E. WHEREAS, the Initial Financing Agreement contemplates certain tunnel and trunk sewer improvements to provide wastewater utility service to the Windemere Property, Shapell Property, and other properties (collectively "Properties"); and F. WHEREAS, as set forth in the Initial Financing Agreement, Windemere, as Installer, is liable for all of the costs associated with the construction of the Dougherty Valley Tunnel and Trunk Sewer (District Project No. 5902) ("Project"); and G. WHEREAS, planning and design of the Project are complete, and the costs thereof have been incurred and have been, or will be, invoiced and fully reimbursed to CCCSD by Windemere under the terms of the Initial Financing Agreement; and H. WHEREAS, Windemere has obtained financing through issuance of certain land- based bonds issued by the Association of Bay Area Governments ("ABAG Bonds"); and I. WHEREAS, the funds from the ABAG Bonds are now available to finance the construction of the Project; and J. WHEREAS, the Initial Financing Agreement contemplates and the parties desire an agreement setting forth the manner and method of payments for construction of the Project, and all other rights, duties, liabilities, and schedules related thereto, which agreement shall present no financial responsibility to current and future CCCSD customers for the cost of the Project; and K. WHEREAS, Shapell has been afforded a reasonable right of review of this Agreement for protection of its rights under the Initial Financing Agreement, as was contemplated in said Initial Financing Agreement, and has indicated that this Agreement adequately protects such rights of Shapell. NOW, THEREFORE, CCCSD and Windemere agree that this Agreement states the responsibilities and activities regarding financing and construction of the Project serving the Properties, all as set forth herein. Page 2 of 18 Doc # 252129v.6 _..__.__~_~,_.._.._________._..._._.______.___._.._.._m_......___,_"" _ . .. . .__.._._.___"__.___..______,_,.,~___..__._'_.._~...______.__...._....,.__"__.->____...___._ -'-l._--'-~- --_._._..._..,~.. AGREEMENT ARTICLE 1. Definitions. 1.1. "ABAG Bonds" or "Bond" or "Bonds" means the bonds designated "Limited Obligation Improvement Bonds, Association of Bay Area Governments, Windemere Ranch Assessment District 1999-1, Series 1999." 1.2. "Bond Documents" means those documents related to the issuance and repayment of the ABAG Bonds. 1.3. "Claims" means any and all claims, demands, liabilities, damages, losses, costs, charges, and expenses (including attorneys' fees) that any Indemnified Person may incur or be subject to. 1.4. "Contract for Construction" means the prIme construction contract and incorporated contract documents executed after award to the lowest responsible bidder submitted during the Public Bid Process for the construction of the Project, including bid addenda and change orders. 1.5. "Indemnified Person" means CCCSD and each of its officers, directors, employees, attorneys, and agents. 1.6. "Initial Financing Agreement" means the August 3, 1998 agreement between Shapell, WRP, and CCCSD for the planning, design, property rights acquisition, and construction of tunnel and trunk sewers. 1.7. "Project" means the entire scope of work set forth in the District project documents that include those facilities between and including the east portal of the tunnel and the and the wet well junction structure at CCCSD's Larwin Pumping Station in San Ramon, known as the Dougherty Valley Tunnel and Trunk Sewer, District Project No. 5902, as set forth in Plans and Specifications dated May 16, 2001, including modification thereto as required during the bid period and construction of the Project. Page 3 of 18 Doc # 252129v.6 _._,__~_,_,.,_",____,___'_"""k_'__'___"_'_'___'_____.__._._.._._._______.....____._______..__. 1.8. "Properties" collectively means the Shapell Property, the Windemere Property, and the other properties to be served by the Project. 1.9. "Public Bid Process" means the statutorily mandated public bid process required for Sanitary District projects, as defined in California Public Contracts Code ~ 20800. 1.10. "Reimbursement Account" means that deposit account held by CCCSD and funded by the reimbursement fee collected from certain property owners whose properties do not lie within the Dougherty Valley development area, but who will eventually connect their properties to public sewers that will be tributary to the Project. 1.11. "Shapell Property" means those certain lands owned by Shapell in an area known as the Dougherty Valley in Contra Costa County, California shown schematically in Exhibit A. 1.12. "Trunk Sewer Connection" means the trunk sewer (including a bridge or culvert and roadway embankment crossing Alamo Creek) between the east portal of the tunnel and the Windemere Property. 1.13. "Windemere Property" means those certain lands owned by Windemere in an area known as the Dougherty Valley in Contra Costa County, California shown schematically in Exhibit A. ARTICLE 2. Responsibilities of CCCSD. 2.1. Contract for Construction. CCCSD will solicit proposals and, following approval by Windemere, will execute the Contract for Construction in accordance with the Public Bid Process to implement the Project. As a party to the Contract for Construction, CCCSD assumes all management responsibilities thereto. The Contract for Construction shall contain a provision that entitles the contractor to earn an incentive fee in the event the Estero- Mangos trunk sewer portion of the Project is completed in advance of the milestone completion date in an amount of $5,000 per day of early completion, up to a total of thirty (30) days for a maximum incentive fee of$150,000. Page 4 of18 Doc # 252129v.6 -- -----..-.---..-------------------..--------.----...---_._.,-_.._----~,-_._-"._---,-~.._-,-~----'_.__._'"._-.._,--"._-~--------_._--,_._------_._.'--.------- The Contract for Construction shall contain a provIsIon whereby the contractor indemnifies, protects, defends, and holds Windemere, Brookfield Bay Area Holdings LLC, a Delaware limited liability company ("Brookfield"), Centex Homes, a Nevada general partnership ("Centex"), LEN-OBS Windemere, LLC, a Delaware limited liability company ("LEN-OBS"), and Shapell harmless from and against any claim, loss, damage, cost, or expense (including, without limitation, reasonable attorneys' and experts' fees and other costs) arising out of or in connection with the Contract for Construction. The Contract for Construction shall require the contractor and, through it, any applicable subcontractors, to retain policies of insurance consistent with the types and amounts customarily required by CCCSD in such construction contracts. The Contract for Construction shall require the general contractor and, through it, any applicable subcontractors, to name Windemere, Brookfield, Centex, LEN-OBS, and Shapell as additional insureds with respect to such insurance policies and a copy of the insurance certificate shall be forwarded to Windemere, Brookfield, Centex, and LEN-OBS. The Contract. for Construction shall further require the contractor, any applicable subcontractors and the insurers of each to provide Windemere and Shapell with thirty (30) days notice of any lapse, termination, non-renewal, material modification or amendment, or cancellation of any said insurance policies. 2.2. Project Management. CCCSD will assign a project manager, consultant engineering staff, and other personnel to provide daily inspections, direction, administration, and review of work on the Project under the Contract for Construction. CCCSD will keep Windemere and Shapell informed of the status of work on the Project under the Contract for Construction and invite representatives of Windemere and Shapell to weekly construction meetings addressing the Project. CCCSD will manage the Project prudently and will promptly notify Windemere of proposed changes to the Contract for Construction work plan, time schedule, or budget, when the value of the proposed change is greater than $250,000.00. CCCSD will provide full consideration to the interests of Windemere and Shapell; however, CCCSD will retain complete discretion for implementing any proposed changes. 2.3. Property Rights Acquisition. CCCSD covenants and agrees that CCCSD has acquired or shall acquire all property rights required for construction and operation of the Project (including, but not limited to, the Trunk Sewer Connection), including all easements or Page 5 of 18 Doc # 2.52129v.6 ~___~__________,~,~'M_.____'_'""'_'_____"_~__'_""___.__._....___.._._.__,._,__._.,,_._~..________._._____._.---t-----.-.,..,. .....-.._~_._------- other consents needed from Shapell. Upon written request from Wind em ere and Shapell, CCCSD shall provide documentation of such property rights. 2.4. Derivative Interests, Materials, and Information from Project. All rights, titles, royalties, and interests to all work products of CCCSD or its consultants resulting from their performance under this Agreement, including easements and fee title to real property acquired, drawings and specifications, data, reports, estimates, opinions, recommendations, summaries, software, systems, networks, and other such information, interests, and materials as may be accumulated by CCCSD or its consultants in performing work under this Agreement, whether complete or in progress, shall be vested in CCCSD; provided, however, that CCCSD shall deliver to Windemere and Shapell copies of plans and other documentation as may be requested by Windemere and Shapell in connection with its tie-ins of the Trunk Sewer Connection to the Project. 2.5. Temporary Utility Service. In the event Windemere is ready to obtain occupancy permits for residential units on the Property, including model home units and the fire station, prior to the scheduled or actual completion date of the Project, CCCSD shall use its best efforts, to cooperate with Windemere, to provide alternate waste water utility service for such units on a temporary basis until the Project is completed. Windemere is responsible for all costs associated with provision of the temporary utility service, including design and construction costs for any such alternative service. ARTICLE 3. Windemere Responsible for All Costs of Construction. 3.1. Costs. As further set forth in this Agreement, Windemere shall be responsible for all costs of construction of the Project. These costs may include but shall not be limited to all costs reasonably incurred for staff, consultants, and attorneys in connection with the following: 3.1.1. The Public Bid Process, including reasonable amounts for preparing bid solicitation and addenda, reviewing bids, and selection of the lowest responsible bid; 3.1.2. Obtaining all permits or licenses, including preparation of documents or applications; Page 6 of 18 Doc # 252129v.6 .__ ^_~______.~__<..__"__._,_"_._...________._..._.__._____._______.____.,_~~__,_.._.__"".____'___....__.__.__"_____.,.~~_.____-r~~___._". 3.1.3. Preparation of the Contract for Construction; 3.1.4. Acquisition of any supplemental property rights required for carrying out the Project; 3.1.5. All construction management, supervision, consultation, and inspection of the Project, including, but not limited to, field offices, office supplies and equipment, and vehicle charges; 3.1.6. All amounts due, either directly or indirectly, because of any delay, default, termination, or other similar cause resulting from the Contract for Construction; and 3.1.7. Carrying costs on any amount due from Windemere and not provided for by the initial deposit to the Escrow Account at the average interest rate paid by the State of California Local Agency Investment Fund for the month prior to the particular period to which the payment of additional funds is required. 3.2. Escrow Account. Windemere shall make a requisition to the Bond Trustee for a net lump sum amount of $17,186,267.00, which the parties anticipate will cover all of the costs associated with the Project. (See Exhibit B) This lump sum amount shall equal one hundred percent (100%) of the sum of (a) the lump sum bid price of the Contract for Construction; (b) a fifteen percent (15%) construction contract contingency; (c) the amount of $2,681,000.00 as the estimate for contract administration, attorneys fees, inspection, consulting, testing, permits, construction management, and other incidental costs; (d) the amount of $225,000.00 as the estimate for the Public Bid Process; and (e) a fifteen percent (15%) contingency for the estimated amounts in (c) and (d). The total of (a) through (d) above shall be reduced by the amount on deposit in the existing CCCSD Dougherty Tunnel and Trunk Reimbursement Account No. 1- 0000-226.59-02 ("Reimbursement Account"). Windemere will then deposit the net lump sum amount into Escrow Account NO.1 B5~700 at Well s Fargo Bank established to pay for all of the costs associated with the Project ("Escrow Account"). Windemere and CCCSD shall provide escrow instructions that provide for CCCSD to have the unfettered right to draw against the Escrow Account funds, in its sole discretion, for payment of all costs set forth in Paragraph 3.1. Once the Project is complete, all money and earned interest remaining in the Escrow Page 7 of 18 Doc # 252129v.6 _.__~,___"_,,_,,__^,_,.._~____,_,,,^____"'h__'_"~ _. __ _.~___.._~,_______._~_.,"___.__.,_._+._..__...-.--_."._. -_..,~------.__..-~~-,--- Account, if any, shall be released to Windemere. All monies deposited into the Escrow Account shall only be used for payment of costs set forth in Paragraph 3.1 and no other purpose, and proper construction accounting procedures will be used to provide backup documentation for all payments made therefrom. 3.3. Cost Overruns. If, at any time, CCCSD, in its sole discretion, reasonably determines that the total cost of completion of the Contract for Construction and other work the costs for which Windemere is responsible under this Agreement may exceed the amount of money in the Escrow Account, CCCSD and Wind em ere shall negotiate the means by which Windemere will place an additional amount of money into the Escrow Account. Windemere's placement of additional funds into the Escrow Account shall not create, shift, or aSSIgn any financial responsibility to CCCSD or its current or future customers. 3.4. Reimbursement Account. All funds on deposit in the Reimbursement Account at time of funding of the Escrow Account shall be deposited therein and any additional funds accumulating in said Reimbursement Account during the construction of the Project shall also be periodically deposited therein. 3.5. Other Fees. Windemere agrees to pay capacity fees as may be set by CCCSD for new construction within the Windemere Property. Windemere also agrees to pay as a capacity fee surcharge, its proportionate share of the costs associated with advancing or accelerating the construction of improvements to the Larwin Pumping Station and construction of a new force main, as is provided for in the settlement agreement in the litigation known as Central Contra Costa Sanitary District v. City of San Ramon, Contra Costa County Superior Court Case No. COO-02560. CCCSD currently estimates these costs to be approximately $2 million to $3 million. In addition, Windemere agrees to pay all plan review fees, annexation fees, inspection fees, and other fees and charges applicable to developments as required by CCCSD pursuant to lawfully adopted resolutions and/or ordinances. ARTICLE 4. Obligations Absolute. 4.1. Strict Performance. To the fullest extent permitted by applicable law, the obligations of Windemere under this Agreement shall be unconditional and irrevocable, and shall Page 8 of 18 Doc # 252129v.6 -~_._,-_._----~_..._---~,-~---""-_.._~"._._."-~,.,-_.-._._-----_.~.,---_.__._--,_.~-"-~._.."_.,~- be paid or performed strictly in accordance with the terms of this Agreement without regard for any of the following circumstances: 4.1.1. Any lack of validity or challenge to the Bond Documents or the proceeds therefrom; 4.1.2. Any nonapplication or misapplication of Bond proceeds; 4.1.3. Any lack of validity or enforceability of the Initial Financing Agreement; 4.1.4. The existence of any Claim, set-off, or other right that Windemere may have at any time against the Bond Trustee, any beneficiary of Bond proceeds, Shapell, the City of San Ramon, the South San Ramon Neighborhood Association, or other governmental entity or citizens group; 4.1.5. Any action of a governmental agency, other than CCCSD, which may affect the development of the Windemere Property; 4.1.6. Insufficient revenue, credit, capital, or other means of meeting the payment obligations contained herein; 4.1.7. Any contractor's Claim made against any party to this Agreement; 4.1.8. Any claim against the Contractor, a subcontractor, Windemere, or CCCSD made by a governmental agency, or other action taken by a governmental agency that affects the cost or progress of the work under the Contract for Construction; 4.1.9. Any disputes or Claims between Windemere and CCCSD, but only during the time the dispute or Claim is unresolved. Windemere must continue to meet its obligations under this Agreement during the pendancy of any such dispute or Claim. ARTICLE 5. Indemnification. 5.1. Scope of Indemnity. In addition to any other amounts payable to CCCSD under this Agreement, Windemere hereby agrees to release, protect, indemnify, pay, and save CCCSD Page 9 of 18 Doc # 252129v.6 - -~._-_.,._--------~-...,-_._..."._.,_..._._..__.._..-..~-_.__.._.,--,._--,._.._~._._.._...,--_._,--~._-------_.---~---,---_._-_._------.------ and each of its officers, directors, employees, attorneys, and agents (each an "Indemnified Person") harmless from and against any and all claims, demands, liabilities, damages, losses, penalties, costs, charges, and expenses (including attorneys' fees) that any Indemnified Person may incur or be subject to (collectively "Claims") as a consequence, direct or indirect, of (i) the Public Bid Process or Contract of Construction; (ii) costs arising for any reason from change orders to the Contract for Construction; (iii) failure to pay any amount due under the Contract for Construction; (iv) the breach by Windemere of any representation, warranty, covenant, term, or condition in, or the occurrence of any default by Windemere under, this Agreement or any of the Bond Documents, including all fees or expenses resulting from the settlement or defense of any claims or liabilities arising as a result of any such breach or default; (v) any delay or termination of the Contract for Construction; (vi) the use of proceeds of the ABAG Bonds or any drawing therefrom; or (vii) the involvement of any Indemnified Person in any legal suit, investigation, proceeding, inquiry, or action as a consequence, direct or indirect, of the issuance of the ABAG Bonds, or a default under this Agreement by Windemere. 5.2. Notification and Defense of Indemnified Claim. Promptly after receipt by an Indemnified Person of notice of the commencement of any action in respect of which indemnity may be sought against Windemere under this Article 6, such Indemnified Person shall notify Windemere in writing of the commencement thereof, and, subject to the provisions hereinafter stated, Windemere shall assume the defense of such action (including the employment of counsel, who shall be satisfactory to the Indemnified Person, but at Windemere's expense) insofar as such action shall relate to any alleged liability in respect of which indemnification may be sought from Windemere. 5.3. Separate Counsel. An Indemnified Person shall have the right to employ separate counsel in any such action and to participate in the defense thereof, provided that the fees and expenses of such counsel shall be at the expense of such Indemnified Person. ARTICLE 6. Representations and Warranties of Developer. 6.1. Windemere. Windemere warrants and represents .to and covenants with CCCSD as follows: Page 10 of 18 Doc # 252129v.6 ,_,~"""",,,_,__,.~.,_,,_"____"'.__" m'_____.,___._____.~___~_____.__.._._____._.._"_..__._~..----._.-._,..,..--..,-- 6.1.1. Organization; Powers. Windemere is validly existing and in good standing under the laws of the State of California, with the power and authority to carry on business as presently conducted, including, without limitation, the authority and ability to perform its obligations under this Agreement. 6.1.2. Corporate Authority. The execution, delivery, and performance by Windemere of this Agreement has been duly authorized by all necessary action, and this Agreement constitutes legal, valid, and binding obligations enforceable in accordance with their terms, notwithstanding that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws generally affecting creditors' rights, by general equitable principles that may limit the right to obtain equitable remedies and by provisions of applicable California law. 6.1.3. Litigation. There is no action, suit, proceeding, inquiry, or investigation at law or in equity before or by any court, public board, or body pending against or affecting Windemere, or their properties, assets, or operations (a) wherein an unfavorable decision, ruling, or finding could have a materially adverse affect upon: (i) the transactions contemplated by, or the validity of, this Agreement; or (ii) Windemere's property, assets, operations, or condition, financial or otherwise, or its ability to perform its obligations in respect of this Agreement; or (b) which in any way contests the existence, organization, or powers of the Windemere or the titles of the officers of Wind em ere to their respective offices. 6.1.4. Preservation of Existence. For the life of this Agreement, Windemere covenants to preserve and maintain its existence as an entity duly organized, validly existing, and in good standing in the State of California, and its rights, franchises, and privileges that are material to the conduct of its business and to the performance of its obligations under this Agreement and that it will not dissolve; provided, however, that Windemere may cease to maintain its existence only if such occurs subsequent to an assignment of this Agreement approved by CCCSD pursuant to the terms of Paragraph 8.8 herein. 6.2. CCCSD. CCCSD warrants and represents to Windemere as follows: Page 11 of18 Doc # 252129v.6 6.2.1. Organization: Powers. CCCSD has the power and authority to carry on its activities as presently conducted, including, without limitation, the authority and ability to perform its obligations under this Agreement. 6.2.2. Corporate Authority. The execution, delivery, and performance by CCCSD of this Agreement has been duly authorized by all necessary action, and this Agreement constitutes legal, valid, and binding obligations enforceable in accordance with their terms, notwithstanding that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws generally affecting creditors' rights, by general equitable principles that may limit the right to obtain equitable remedies and by provisions of applicable California law. 6.2.3. Litigation. There is no action, suit, proceeding, inquiry, or investigation at law or in equity before or by any court, public board, or body pending against or affecting CCCSD, or their properties, assets, or operations (a) wherein an unfavorable decision, ruling, or finding could have a materially adverse affect upon: (i) the transactions contemplated by, or the validity of, this Agreement; or (ii) CCCSD's property, assets, operations, or condition, financial or otherwise, or its ability to perform its obligations in respect of this Agreement; or (b) which in any way contests the existence, organization, or powers of CCCSD or the authority of officials of CCCSD to bind CCCSD. ARTICLE 7. Default and Termination. 7.1. Default and Cure. Any failure by a party to perform any term or provision of this Agreement, which failure continues uncured for a period of thirty (30) days following written notice of such failure from the party to whom performance is due (unless such period is extended by written mutual consent), shall constitute a default under this Agreement. Any notice given pursuant to the preceding sentence shall specify the nature of the alleged failure, and, where appropriate, the manner in which such alleged failure may satisfactorily be cured. Upon receipt of any notice of default, the parties to this Agreement shall immediately meet and confer in order to make a good faith effort to allow for any default to be cured prior to the expiration of the cure period. If the alleged failure is cured, then no default shall exist and the noticing party Page 12 of 18 Doc # 2S2129v.6 _...._...__.__~_______~___^___~..,_~__.".___._.____._'_..____.~__~_,_.._,.~+__._____~______.~'_.._..__.,_~_._...____.~.----t"'---- -_....._._~--,---_."- shall take no further action. If the alleged failure is not cured, then a default shall exist under this Agreement and the non-defaulting party may exercise any of the remedies available to it under law or equity, which remedies the parties acknowledge shall include a right to terminate this Agreement. The provision of notice and opportunity to cure shall be a prerequisite to the enforcement or correction of any default. On termination, CCCSD shall receive from Windemere payment for all amounts due and not previously paid to CCCSD for work completed or in progress in accordance with the Agreement prior to such date of termination, including payment for construction claims arising out of the work, and for any costs incidental to such termination, including any claims or penalties arising from the early termination of the Contract for Construction. Furthermore, Windemere shall be required to satisfy any outstanding obligations under this Agreement, which include all potential costs or indemnified occurrences listed in Paragraphs 3.1 and 5.1. Windemere shall not be entitled to any refund of payment made to CCCSD if termination occurs, unless or until all costs, claims, and liabilities are resolved and paid. Windemere shall be entitled to interest on excess funds held in the Escrow Account at the current rate being paid by the State of California Local Agency Investment Fund, to the extent those funds are withheld in bad faith or beyond the time that it is reasonable to withhold same to ensure payment of all outstanding costs, including known contingent liabilities for which Windemere is liable. ARTICLE 8. Miscellaneous Provisions. 8.1. Time Is of the Essence. The parties hereto agree that time is of the essence in completing the obligations set forth in this Agreement and to immediately proceed diligently with their respective duties as set forth herein so that the contemplated Project shall be satisfactorily completed in the shortest reasonable amount of time. 8.2. Completion of Agreement. After completion of the Project, and satisfaction of all outstanding Claims, final payments, and other obligations under this Agreement, this Agreement shall terminate without further action from the parties. 8.3. Payment Dispute Resolution. In the event of any dispute as to whether an obligation is payable, Windemere and CCCSD agree to submit such dispute to binding Page 13 of 18 Doc # 252129v.6 _._---~---~.,~-_._'---".,----_.._-_._-_...._-~._._"_..-~-----_.__._--"' __________~____.,._.__,_._____._._.~'__..""__4_'_--.,---~.---......-...--.- -- arbitration under the rules of the American Arbitration Association for resolution. 8.4. Attorneys' Fees. The prevailing party in any arbitration or lawsuit brought to interpret or enforce the terms of this Agreement, or in any claims whether in contract, tort, or otherwise, arising directly or indirectly out of this Agreement or its performance, shall be entitled to recover its reasonable costs and attorneys' fees from the other party or parties, and the court or arbitrator shall award such attorneys' fees as an element of costs. For purposes of this provision, "prevailing party" shall include a party that dismisses an action for recovery hereunder in exchange for payment ofthe sum allegedly due, performance of covenants allegedly breached, or consideration substantially equal to the relief sought in the action or proceeding. "Prevailing party" shall not include a party who refuses an offer of compromise presented in writing at least ten (10) days before trial or arbitration of the matter, and who fails to receive an award more favorable than the terms and conditions set forth in the offer of compromise, either in the amount of damages awarded or in the type of relief granted. 8.5. Initial Financing Agreement. The parties agree that the Initial Financing Agreement remains in full force and effect and that this Agreement does not modify, but rather clarifies, the terms of the Initial Financing Agreement. 8.6. Entire Agreement; Modification. Except as may be provided in the Initial Financing Agreement, this Agreement contains the entire understanding and agreement between the parties with respect to the matters covered hereby. Except as may be provided in the Initial Financing Agreement, any prior or contemporaneous understanding or agreement between the parties that may be interpreted to be in conflict with the terms stated herein are specifically abrogated by this Agreement, and, in the case of any conflict with the Initial Financing Agreement, the terms of that agreement still govern. No oral understanding or agreement not incorporated herein will be binding on any of the parties hereto. No alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties to be bound by the alteration or variation. No presumption or rule that ambiguities be construed against the drafting party shall apply to the interpretation of this Agreement. 8.7. No Waiver. Failure by a party to insist upon strict performance of any of the Page 14 of 18 Doc # 252129v.6 ____~_."_.~__,,_____.__._.._.__U_h.~_.._._.__m____"_._._m._'___'_"_'_~"_____'__"~____'_'~_~_'_'_.'____'_'~'._-......----~-~-----.--........--.,--.-,..-..--..".~-----'-->_.-_.._" provisions of this Agreement by the other parties, or the failure of a party to exercise its rights upon the default of the other parties, shall not constitute a waiver of the party's right to insist and demand strict compliance thereafter by the other parties with the terms of this Agreement. 8.8. Successors and Assigns. The benefits and burdens of this Agreement shall be binding upon and inure to the benefit of the successors and assigns of Windemere' s interests in the Property, whether as a result of voluntary or involuntary assignment or actions. This Agreement may not be voluntarily assigned, in whole or in part, by Windemere without the prior written consent of CCCSD, which consent shall not be unreasonably delayed. Additionally, Windemere shall provide evidence to CCCSD that any other assignee has been informed of the obligations under this Agreement. In connection with any such voluntary assignment, CCCSD may require that the assignor and the assignee promptly provide all material information and documentation requested, including financials. CCCSD may reasonably condition its consent on the provision of adequate financial guarantees by the proposed assignee and on any other factor that CCCSD reasonably deems relevant under the circumstances. As a condition of CCCSD's approval of any proposed assignment of this Agreement, the assignor or proposed assignee shall pay to CCCSD, prior to the effective date of the assignment, all amounts then actually due and not previously paid to CCCSD for work completed or in progress under the terms of this Agreement, as well as paying for all reasonable costs for review of the assignment. 8.9. Good Faith. Each party agrees in good faith to perform as set forth herein. 8.10. Relationship of the Parties. The parties entering into this Agreement do not intend to create any agency, partnership, joint venture, trust, or other relationship with duties or incidents different from those of parties to an arm's-length contract. 8.11. Notices. All notices to any of the parties by another party shall be made in writing and delivered or mailed to such party/parties at their respective addresses as follows, or to other such address as the parties may designate, and said notices shall be deemed to have been made when delivered or five (5) days after mailing. Page 15 of18 Doc # 2S2129v.6 -_._,----"-_.~--_._--,,...._,-_.,~._-~-----"_._.__.,----,-------,~_._,....._._-~-,._-~..__..-._---_..._.......--,...-.--~---~_._-----~.. To CCCSD: Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, California 94553 Attention: Curt Swanson, Environmental Services Division Manager With a copy to: Kenton L. AIm, Esq. Sellar, Hazard, McNeely, AIm & Manning 1111 Civic Drive, Suite 300 Walnut Creek, California 94596 To Windemere: Lennar Communities 3130 Crow Canyon Place, Suite 310 San Ramon, California 94583 Attention: Pete Petersen With a copy to: R. Clark Morrison, Esq. Morrison & Foerster LLP 101 Ygnacio Valley Road, Suite 450 Walnut Creek, California 94596 8.12. Survival of Provisions. Notwithstanding the expiration or earlier termination of this Agreement, Windemere's obligations pursuant to Paragraphs 3.1, 3.2, 3.3, 4.1, 5.1, and 8.4 shall survive expiration or termination of this Agreement. 8.13. Section Headings; Recitals. The section headings in this Agreement are only for the purpose of reference and shall in no way define or interpret any provision hereof The parties acknowledge and agree that the Recitals set forth above are true and correct and are incorporated herein by this reference. 8.14. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any actions brought to enforce any provisions of this Agreement shall be brought in Contra Costa County. 8.15. Recordation of Agreement. This Agreement shall not be recorded with the Contra Costa County Recorder. Page 160f18 Doc # 252129v.6 ._--,-_._--"-,.__._--~_.__._--"-~~---_._---'~-'-'_.,~.-------~ 8.16. Counterparts. This Agreement may be executed in as many counterparts as may be necessary or convenient, and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed an original, and all such counterparts shall constitute one and the same instrument. 8.17. Effective Date. The effective date of this Agreement shall be the date set forth in the initial paragraph. Attest -if~ /7, J-QOI By: CENTRAL CONTRA COSTA SANITARY DIST Dated: ..JVL." I T J t. 00 I WINDEMERE BLC LAND COMPANY By: LEN-OBS Windemere, LLC, a Delaware limited liability company, Member By: Lennar Homes of California, Inc. a California corporation Managing Member ~~~ Dated: ~o ~ ':i . 'l. 00 I By: Pete Petersen, Vice President Page 17 of 18 Doc # 2S2129v.6 SELLAR, HAZARD, MCNEELY, ALM & MANNING Dated: By: Kenton L. AIm, Esq. Attorneys for CENTRAL CONTRA COSTA SANITARY DISTRICT MORRISON & FOERSTER LLP Dated: By: John P. Doorlay, Esq. Attorneys for WINDEMERE BLC LAND CaMP ANY, LLC. Page 18 of 18 Doc # 252129v.6 "'___._.,._._._____~_'_~'_____._.,_." __,_~..,.~,._~________,_~,___~_"_______._'___.,_.__.,__.._._____._______t_------ --- cc BOUNDARY OF AREA TRIBUTARY TO TUNNEL '" o ol1 .. ~ Central Contra Costa Sanitary District o o N ~ .... o N AGREEMENT BETWEEN CENTRAL CONTRA COSTA SANITARY DISTRICT AND WINDEMERE. BlC LAND COMPANY llC FOR CONSTRUCTION ANANCING OF THE DOUGHERTY VALLEY TUNNEL AND TRUNK SEWER (DISTRICT PROJECT NO. 5902) EXHIBIT A / EXHIBIT B Dougherty Valley Tunnel and Trunk Sewer CCCSD Project No. 5902 Post-Bid Preconstruction Cost Estimate 1. Construction . Contract - Mountain Cascade, Inc. $12,274,620 . Contingency @ 15% 1,841,380 . Incentive for Early Completion 150.000 Subtotal: $14,266,000 2. Construction Management . Project Management 263,000 . Contract Administration 128.000 Subtotal: 391,000 3. Consultant Contracts . Engineering and Inspection 850,000 . Geotechnical/Structural Engineering 150,000 . Tunnel Specialty Inspection 430,000 . Preconstruction Damage Assessment 60,000 . Materials Testing 50,000 . Surveying 30,000 . Air Quality Monitoring 25,000 . NoiseNibration Monitoring 25,000 . Miscellaneous (Traffic, Safety, Arborist) 20.000 Subtotal: 1,640,000 4. Miscellaneous . Community Liaison 150,000 . Public Relations 53,000 . District Surveying 10,000 . Legal 50,000 Page 1 of 2 EXHIBIT B (continued) Dougherty Valley Tunnel and Trunk Sewer CCCSD Project No. 5902 Post-Bid Preconstruction Cost Estimate 5. Miscellaneous (continued) . Dispute Review Board 50,000 . District Operations Departments 40,000 . City of San Ramon Inspection 100,000 . County Inspection 30,000 . District Engineering Support 10,000 . Field Office Secretary 50,000 . Field OfficeNehicle - Lease & Utilities 60,000 . Field Office Support 22,000 . Right of Way (Staging Area) 25.000 Subtotal: 650,000 6. Public Bid Process (Estimated Costs for June 2001): 225,000 7. Subtotal - Items 2 thru 5: 2,906,000 8. Contingency - Items 2 thru 5 @ 15 %: 435,667 8. Pre-Bid Expenditures (thru May 2001): 1,630,333 TOTAL PROJECT COST ESTIMATE: $19,238,000 9. less Windemere BlC reimbursements thru May 2001: (1,630,333) 10. Amount needed to complete project: 17,607,667 11. less amount from Reimbursement Account: (421,400) 12. Required amount for Windemere BlC to requisition from ABAG Bonds: $17,186,267 Page 2 of 2 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 8.b. ENGINEERING Type of Action: INFORMATIONAL Subject: ADVISE THE BOARD OF THE CLOSE OUT OF THE MARTINEZ EAST SIDE TRUNK SEWER IMPROVEMENTS PROJECT (D.P. 4950) Submitted By: Henry Thom, Senior Engineer Initiating Dept./Div. : Engineering/Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: ~~ #r H. Thorn B. Brennan o~ ISSUE: All work has been completed on the Martinez East Side Trunk Sewer Improvements Project (D.P. 4950) and this project can now be closed out. RECOMMENDATION: Close out the project. FINANCIAL IMPACTS: This close out will result in $1,128,000 being returned to the Collection System Program. Attachment 1 shows the project expenditures by category. AL TERNA TIVES/CONSIDERA TIONS: Not applicable. BACKGROUND: The Martinez East Side Trunk Sewer Improvements Project is a joint project between the District and the City of Martinez (City). The District's portion of the project replaced approximately 17,000 feet of sewer in downtown Martinez with new sewers ranging from 8 inches to 24 inches in diameter. The contractor, McGuire And Hester of Oakland, commenced work on July 20, 1998. All contract work was completed and accepted by the Board on July 15, 1999. McGuire And Hester's construction contract amount was $5,429,808. There were 17 change orders issued for the total amount of $108,971. The total contract amount paid to McGuire And Hester was $5,538,779. The City's portion of the joint project included roadway improvements and approximately 3,500 feet of new sewer ranging from 6 inches to 15 inches in diameter along Pacheco Boulevard. The City's contractor, Bay City Paving and Grading, Inc., commenced work in January 1998 and the work was accepted by the City on October 18, 2000. The final contract cost was $2,945,040 including the District's share of $426,490 (which also includes $13,800 for change orders). 6/27/01 U :\PPR\srn\MTZEastSideCO. wpd Page 1 of 3 POSITION PAPER Board Meeting Date: July 5, 2001 Subject: ADVISE THE BOARD OF THE CLOSE OUT OF THE MARTINEZ EAST SIDE TRUNK SEWER IMPROVEMENTS PROJECT (D.P. 4950) In October 1999, the City's contractor filed a claim for $766,588 and later increased to $974,088. The claim was settled in March 2001 and the District's portion of those funds are included in the total project expenditures. The District's total budget for the two joint projects was $9,068,000 which included a higher contingency than the typical projects because of unknown potential problems due to microtunneling in bay mud conditions in addition to the potential of encountering contaminated materials due to the proximity to the refineries. The project was completed without those problems. The total completed project cost including the claim settlement is $7,940,000, which is approximately 13 percent less than the budget. Staff is closing out the project which will result in $1,128,000 being returned to the Collection System Program. RECOMMENDED BOARD ACTION This item is presented to the Board of Directors for information. No action is necessary. 6/27/01 U :\PPR\sm\MTZEastSideCO. wpd Page 2 of 3 --'-....--..----.--.--.------..--__._____.____________..,.___.~__..______,W"__._,_,.~"__..__,__~~_._____.____'__.._._____~-_-.__- _~____'___ ~ ATTACHMENT 1 EXPENDITURE SUMMARY MARTINEZ EAST SIDE TRUNK SEWER IMPROVEMENT PROJECT (DP4950) ACTIVITY COST Total Budget Construction Contracts (District's and City's sewer portion) Change Orders (includes claim settlement) Change Orders % of Construction Total Construction Amount $9,068,000 $5,842,498 $ 352,771 6% $6,195,269 $1,744,731 28% $7,940,000 $1,128,000 Eng, Design, CM, Admin Eng, Design, CM, Admin - % of Construction TOTAL PROJECT EXPENDITURES TOTAL RETURN TO COLLECTION SYSTEM PROGRAM CLOSE OUT OF CAPITAL ,J~ IMPROVEMENT PROJECTS !I :11l]1111111-:I:!. ..... ............................ ~~~'1~~::;:::;:::;:::::::::::~~::~:::::::::~~:::~::::::~::::::::::::::::::;::;::;::::;::;:;:;:;:::;:::;::::;:;:;:::::::;::::::::::::::::=::::::::::::'.::::;::.:-::::: t~1i~~~ ~~~lt~tttf PRESENTATION TO THE BOARD JULY 5, 2001 WHEN DO PROJECTS COME TO THE BOARD? ~'<<<<-:<<<<-'''''''"<<-:-:->>:-:9:<<':-:->>:':':':'X-:-:-:':-:':':':':':':':':':':.:.:.:.:.:.:.:.:.:.:.:.:-:.:.:.:.:.:.:.:.:.:.:.:.;.:-:.:-:.:.:.:.:.:.:.:.:-:.:-:.:-:-:.;"':.'.:.:-:".".:-:'" Construction Projects . Capital Improvement Budget . Consultant Agreement for Design (>$50,000) . Award Construction Contract . Construction Change Orders (>$50,000) . Contract Acceptance . Project Close Out All Other Projects . Capital Improvement Budget . Consultant Agreement if >$50,000 . Project Close Out WHAT INFORMATION IS PRESENTED AT CLOSE OUT? .. >>>>>>:<~"*:.:.:-:-:<<<<.:-:-:-:-:.:-:-:-:.:.:.:-:.:.:-:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.;.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.;.:.:-:.:.::-:-:-:.:' Pre-1996 + - . Individual position papers . Project specific details Post 1996 . "Gang" position paper twice yearly . Total expenditures vs. budget information only .. ATTACHMENT 1 CAPITAL PROJECTS TO BE CLOSED OUT TREATMENT PLANT PROGRAM DISTRICT PROJECT PROJECT TITLE AUTHORIZED EXPENDITURES UNDERRUN NO. BUDGET (OVERRUNS) 6116 Selector Odor Control $200,000 $204,796 ($4,796) 6148 Sludge Tank Roof Rehabilitation $25,000 $2,970 $22,030 7193 Furnace Air Inlet Improvements $994,000 $713,496 $280,504 7178 Cyanide Control Assessment $570,567 $585,423 ($14,856) 8160 Disaster Command Center $80,000 $67,625 $12,375 Program Totals $1,789,567 $1,574,310 $282,882 COLLECTION SYSTEM PROGRAM DISTRICT PROJECT PROJECT TITLE AUTHORIZED EXPENDITURES UNDERRUN NO. BUDGET (OVERRUNS) 5167 Orinda Tunnel Inspection $25,000 $0 $25,000 5299 Alhambra Way CAD 98-1 $99,000 $83,140 $15,860 5307 Charles Hill Cir CAD 98-2 $373,000 $307,995 $65,005 5405 Forest Lane CAD 99-1 $67,000 $58,465 $8,535 5059 WS 44 Creek Crossing Stability $90,000 $72,394 $17,606 ProQram Totals $654,000 $521,994 $132,006 ATTACHMENT 1 ( cont.) GENERAL IMPROVEMENTS PROGRAM DISTRICT PROJECT PROJECT TITLE AUTHORIZED EXPENDITURES UNDERRUN NO. BUDGET (OVERRUNS) 8178 Year 2000 Compliancy $100,000 $74,086 $25,914 8182 Intranet Development $110,000 $66,525 $43,4 75 8193 Inspection Office Relocation $10,000 $10,000 $0 9027 Radio Communications $63,000 $48,775 $14,225 Improvements 9912 Post Close-Out 8058 $6,000 $4,992 $1 ,008 8160 Disaster Command Center $80,000 $67,625 $12,375 Proaram Totals $369,000 $272,003 $96,997 RECYCLED WATER PROGRAM DISTRICT PROJECT PROJECT TITLE NO. Pro ram Totals AUTHORIZED BUDGET $88,000 $88,000 EXPENDITURES 7163 Recycled Water - Industrial $87,447 $87,447 UNDERRUN (OVERRUNS) $553 $553 PROPOSED CLOSE OUT PROCEDURE FOR FUTURE .~m>>>>:<<<<<<.:-:'>>:':-:-:->>:-:<':'X':-:-:-:':'X':':':':':':':':':':':.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:-:.:.:.:.:.:.:.:.:.:.;.:.:.:.:.:.:.:-:.:.:-:.:.:.:-:-:.:-:-:..................... . "Gang'/ close out position paper twice yearly for projects less than $1 million dollars. . Detailed cost information on all construction projects. Example: Furnace Air Inlet Improvements . Separate position paper for close out of projects greater than $1 million dollars. Example: Martinez East Side Trunk Sewer Improvement Project Change Orders - 3 Total Change Orders as a % of Construction Total Construction Amount Construction Engineering and Management/Contract Administration Construction Engineering and Management/Contract Administration as a % of Construction 2% ers ese ous der s to s to tant the ATTACHMENT 2 (cont) CAPITAL PROJECTS TO BE CLOSED OUT TREATMENT PLANT PROGRAM . The Furnace Air Inlet Improvements Project, DP 7193, provided new air inlet damp and controls for each of District's two sewage sludge incinerators. Th improvements were the result of recommendations from an employee Continu Improvement Team. The sewage sludge incinerator modifications completed un this project have increased operating stability and given the operators more option minimize opacity excursions. These modifications have also provided a mean reduce cyanide formation in the sewage sludge incinerators, which may be impor because of the pending reduction of effluent cyanide concentration limit in District's new NPDES permit. ACTIVITY FOR DP 7193 ITEM $524,500 $10,586 Construction Contract Amount $535,086 $178,367 33% TOTAL PROJECT EXPENDITURES $713 453 ATTACHMENT 1 EXPENDITURE SUMMARY MARTINEZ EAST SIDE TRUNK SEWER IMPROVEMENT PROJECT (DP 4950) ACTIVITY COST Total Budget $9,068,000 Construction Contracts (District's and City's sewer portion) $ 5,842,498 Change Orders (includes claim settlement) $ 352,771 Change Orders % of construction 6% Total Construction Amount $6,195,269 Eng, Design, CM, Admin $1,744,731 Eng, Design, CM, Admin - % of construction 28% TOTAL PROJECT EXPENDITURES $7,940,000 TOTAL RETURN TO COLLECTION SYSTEM PROGRAM $1,128,000 BOARD INPUT :~Q~:~m::QQQc:QOQ:<<<-'''''''"(o:->>:-:-:-:''''-:-:':':-:-:->>:-:':':':':':':':.:.:.:.:.:.:.:.:.:.;.:.:.:.:.;.;.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.;.:.:.:.:.:.:.:.:.:.:.:.:.:-:.::::-:-:-:.:.:.:.:.:.. . Does proposed revised close out procedure meet Board's needs? . Is proposed level of detail on costs for construction projects adequate? . Should Board presentations be made on cost details for projects >$1 million? Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 8. c. ENGINEERING Type of Action: INFORMATIONAL Subject: ADVISE THE BOARD OF THE CLOSE OUT OF 16 CAPITAL IMPROVEMENT PROJECTS Submitted By: John Mercurio, Management Analyst Initiating Dept./Div. : Engineering/Environmental Services J. Mercurio A. Farrell R. Schmidt 'ft: ~W" CMK ISSUE: Work has been completed on 16 capital improvement projects. The financial results are reported to the Board prior to closing the projects' accounts. RECOMMENDATION: This item is presented to the Board of Directors for information only. No action is necessary. FINANCIAL IMPACTS: As a result of the close out of these 16 projects, $512,438 is being returned to the Sewer Construction Fund. Al TERNATIVES/CONSIDERATIONS: No alternatives have been prepared. This is an informational position paper. BACKGROUND: These 16 capital improvement projects have been completed and staff is closing out the project accounts. Below is a summary of the authorized budgets and expenditures for the 16 projects by program. Attachment 1 summarizes the authorized budgets and expenditures for each individual project. Attachment 2 contains a brief project summary for each project and a detailed cost breakdown for the single construction project, DP 7193 - Furnace Air Inlet Improvements Project. Program Authorized Budget Expenditures Underrun (Overruns) Treatment Plant $1,789,567 $1,506,685 $282,882 Collection System $654,000 $521,994 $132,006 General Improvements $369,000 $272,003 $96,997 Recycled Water $88,000 $87,447 $553 Totals $2,900,567 $2,388,129 $512,438 6/28/01 U:\PPR\SM\JJMCLOSEOUTOF15CIPSREV2.wPD Page 1 of 11 POSITION PAPER Board Meeting Date: July 5, 2001 Subject: ADVISE THE BOARD OF THE CLOSE OUT OF 16 CAPITAL IMPROVEMENT PROJECTS The total authorized budget for the 16 projects is $2,900,567. Total project expenditures are $2,388,129. A net underrun of $512,438 (18% of the total authorized budgets) will result in $282,882 being returned to the Treatment Plant Program, $132,006 being returned to the Collection System Program, $96,997 being returned to the General Improvements Program, and $553 being returned to the Recycled Water Program. RECOMMENDED BOARD ACTION: No action is necessary. 6/28/01 U:\PPR\SM\JJMCLOSEOUTOF15CIPSREV2.WPD Page 2 of 11 ATTACHMENT 1 CAPITAL PROJECTS TO BE CLOSED OUT TREATMENT PLANT PROGRAM DISTRICT PROJECT PROJECT TITLE AUTHORIZED EXPENDITURES UNDERRUN NO. BU DG ET (OVERRUNS) 6116 Selector Odor Control $200,000 $204,796 ($4,796) 6148 Sludge Tank Roof Rehabilitation $25,000 $2,970 $22,030 7193 Furnace Air Inlet Improvements $994,000 $713,496 $280,504 7178 Cyanide Control Assessment $570,567 $585,423 ($14,856) 8160 Disaster Command Center $80,000 $67,625 $12,375 Program Totals $1,789,567 $1,574,310 $282,882 COLLECTION SYSTEM PROGRAM DISTRICT PROJECT PROJECT TITLE AUTHORIZED EXPENDITURES UNDERRUN NO. BU DG ET (OVERRUNS) 5167 Orinda Tunnel Inspection $25,000 $0 $25,000 5299 Alhambra Way CAD 98-1 $99,000 $83,140 $15,860 5307 Charles Hill Cir CAD 98-2 $373,000 $307,995 $65,005 5405 Forest Lane CAD 99-1 $67,000 $58,465 $8,535 5059 WS 44 Creek Crossing Stability $90,000 $72,394 $17,606 Program Totals $654,000 $521,994 $132,006 6/28/01 U:\PPR\SM\JJMCLOSEOUTOF15CIPSREV2.wPD Page 3 of 11 ---.....-.-..-.-----.-----------..--..--.----...---..-.-,----.-..-'- -~.- "_.<---'...__._--,--_._--,.~--"_..,._...,._._."._._. ATTACHMENT 1 ( cant.) GENERAL IMPROVEMENTS PROGRAM DISTRICT PROJECT PROJECT TITLE AUTHORIZED EXPENDITURES UNDERRUN NO. BUDGET (OVERRUNS) 8178 Year 2000 Compliancy $100,000 $74,086 $25,914 8182 Intranet Development $110,000 $66,525 $43,475 8193 Inspection Office Relocation $10,000 $10,000 $0 9027 Radio Communications $63,000 $48,775 $14,225 Improvements 9912 Post Close-Out 8058 $6,000 $4,992 $1 ,008 8160 Disaster Command Center $80,000 $67,625 $12,375 Program Totals $369,000 $272,003 $96,997 RECYCLED WATER PROGRAM DISTRICT PROJECT PROJECT TITLE AUTHORIZED EXPENDITURES UNDERRUN NO. BUDGET (OVERRUNS) 7163 Recycled Water - Industrial $88,000 $87,447 $553 Program Totals $88,000 $87,447 $553 6/28/01 U:\PPR\SM\JJMCLOSEOUTOF15CIPSREV2.wPD Page 4 of 11 _ ._.._._..._'"~_....~_____ .__________._.__~..~_...~_,.._.....""_.____~."..._.~_.._..___.._~_,_.._.___.._,__..__.._._......._. ___.____,___..___~_,~__"..___,_.~..,"___,.____....... _,_,__,___",___~_____~"'_"___'_'_"""1__'_____ --- ......--.-------.---.-- ATTACHMENT 2 CAPITAL PROJECTS TO BE CLOSED OUT TREATMENT PLANT PROGRAM . The Selector Odor Control Demonstration project, DP 6116, added fabric covers over the Selector Channel at the north end of the Aeration Basins, and to the entrance areas of the four basins. Odor control equipment was then installed to dilute and distribute an odor control chemical, in mist form, to the space between the covers and the water below. In addition, the Selector mixer motor wiring was replaced to ensure reliable mixer operation. This project demonstrated the feasibility of a simpler methodology for odor control in certain types of applications. . Sludge Tank Roof Rehabilitation, DP 6148, involved the two sludge blending/thickening tank roof structures. Last inspected in 1987, the inspection at that time revealed significant coating deterioration and corresponding structural steel corrosion. Repairs were made during the Sludge Dewatering project. Funds for this project were allocated in anticipation of additional work identified during the inspection that was coordinated with the tank cleaning work in the fall of 2000. The inspection at that time revealed that the coating was intact, the structure was in good condition and that there was no need for any additional work at this time. 6/28/01 U:\PPR\SM\JJ MCLOSEOUTOF 1 5CIPSREV2. WPD Page 5 of 11 ATTACHMENT 2 (cont) CAPITAL PROJECTS TO BE CLOSED OUT TREATMENT PLANT PROGRAM . The Furnace Air Inlet Improvements Project, DP 7193, provided new air inlet dampers and controls for each of District's two sewage sludge incinerators. These improvements were the result of recommendations from an employee Continuous Improvement Team. The sewage sludge incinerator modifications completed under this project have increased operating stability and given the operators more options to minimize opacity excursions. These modifications have also provided a means to reduce cyanide formation in the sewage sludge incinerators, which may be important because of the pending reduction of effluent cyanide concentration limit in the District's new NPDES permit. ACTIVITY FOR DP 7193 ITEM Construction Contract Amount $524,500 Change Orders - 3 Total $10,586 Change Orders as a % of Construction 2% Total Construction Amount $535,086 Construction Engineering and Management/Contract Administration $178,367 Construction Engineering and Management/Contract Administration as a 33% % of Construction TOTAL PROJECT EXPENDITURES $713,453 6/28/01 U:\PPR\SM\JJMCLOSEOUTOF15CIPSREV2.WPD Page 6 of 11 ATTACHMENT 2 (cant) CAPITAL PROJECTS TO BE CLOSED OUT TREATMENT PLANT PROGRAM . The Cyanide Control Assessment Project, DP 7178, identified the sources of cyanide in the final effluent and assessed possible methods to mitigate these sources as required in CCCSD's 1995 NPDES permit. Extensive sampling and analysis showed that the scrubber water from the sewage sludge incinerators was the primary source of cyanide in the final effluent. Experimentation on the sewage sludge incinerators operation indicated that cyanide could possibly be controlled by modifying the sewage sludge incinerator air inlets and altering the operational procedures. The Furnace Air Inlet Improvements Project, DP 7193, completed the modifications to the sewage sludge incinerator air inlets. After the modifications were complete, full-scale testing showed the operation of the sewage sludge incinerators had improved, but that cyanide control was too variable to insure cyanide compliance with a 10 ug/I discharge standard (our current permit limit is 25 ug/I). Additionally, the RWQCB recently has determined that our new cyanide permit limit would be 1 ug/1. Concurrently, several rounds of discussions with the Regional Water Quality Control Board over the past two years have resulted in a decision to develop a site-specific objective for cyanide in San Francisco Bay which will develop a new water quality objective, and new permit limit for cyanide. With this decision, the RWQCB will keep CCCSD's new NPDES permit cyanide limit at a level which the district has a high probability of meeting without further work on the sewage sludge incinerators. 6/28/01 U :\PPR\SM\JJMCLOSEOUTOFl 5CIPSREV2. WPD Page 7 of 11 --" '"__,__,_____.~~__~,_,_.._____._....,,_,,~__,____'u___,_.__." _"_'_'___'_'___'~"'_"__'_.'__._'__"____'_'~"__~'_'____.____.____,___.,__..___".,__....~,,__,____."_____.._.....______.. _~_'"'_~"..... "___'~""'_".__',_ ATTACHMENT 2 (cant.) CAPITAL PROJECTS TO BE CLOSED OUT COLLECTION SYSTEM PROGRAM . The purpose of the Orinda Tunnel Inspection, DP 5167, was to determine the extent of corrosion damage in the tunnel due to hydrogen sulfide. The TV inspection showed the tunnel to be in good condition. The expenditures associated with this inspection were ultimately charged to the District's Collection System Corrosion Evaluation project, DP 4988. . The following three projects were created to finance Contractual Assessment Districts (CADs). Their purpose was to assist property owners in extending public sewers into an area serviced by septic tanks. There were 27 participants in these three CADs: · Alhambra Way CAD 98-1, DP 5299 · Charles Hill Cir CAD 98-2, DP 5307 · Forest Lane CAD 99-1, DP 5405 . The existing sewer serving watershed 44 (North Concord) has experienced gradually undermining of its crossing of Walnut Creek just north of State Route 4 during major rain events. WS 44 Creek Crossing Stability, DP 5059, involved placing an engineered riprap support system along the length of the sewer crossing to protect it in place. 6/28/01 U :\PPR\SM\JJ MCLOSEOUTOF 1 5CIPSREV2. WPD Page 8 of 11 '---~~-----_"~--_.._-^----------_._._,---,-_.._.,,"----'---'--"'~----""--""'-"-'-'----'--"-"-'---"---'--'--'--~---""---'--'-"----'-'-'---'---- ATTACHMENT 2 (cant.) CAPITAL PROJECTS TO BE CLOSED OUT GENERAL IMPROVEMENTS PROGRAM . Year 2000 Compliancy project, DP 8178, replaced computer hardware and software that were not Year 2000 compliant. The MIS and District staff worked together to analyze, document, and resolve possible Y2K problems within the District. During that time, over 7,000 District suppliers and vendors were contacted requesting Y2K compliancy information. Testing, upgrades and/or replacements were made on the District's financial and maintenance systems, network servers and components, desktop PCs and software, along with telephone and voice mail systems. . Intranet Development project, DP 8182, implemented the District's Intranet services. The Online Total Information System (OTIS) was developed to provide District-wide information to computer users by integrating the District's various informational database systems. Through the Intranet Committee, systems such as OTIS, the Geographical Data Integration, Plant Information and Document Imaging systems are being developed. Project funds were used to implement the OTIS server, upgrade the AS/400 operating system for data integration, and acquire additional development and web-enabled software. Future development will be funded through the Information Technology Development Capital Project and other capital projects. . Inspection Office Relocation, DP 8193, created workstations on the first floor of the HOB for the five-person Construction Inspection Section. This group previously shared one smaller office and used the first floor lunch room for additional work space. . Radio Communications Improvements Project, DP 9027, was to replace/upgrade CCCSD's low land radio system with the Nextel units. Also there was an experiment to install Vehicle Tracking hardware and software on District vehicles. The system worked well but the vendor abandoned the technology. . The Post Close-Out 8058 project, DP 9912, was a close-out project for the Computer Aided Mapping/Drafting System (AM/CADD) project, DP 8058. District Project 8058 was used to implement a Computer Aided Mapping/Drafting (AM/CADD)System. Funds were used to purchase CAD workstations and CAD software; system implementation, database design and programming services; initial systems administration, training for the Engineering Technicians, and sewer map data conversion. The primary purpose for the AM/CADD system was to produce the District's sewer system maps in digital format to streamline production and increase legibility. These goals have been accomplished. Another application was to incorporate database data to produce specialized maps of the collection system using Geographic Information Systems (GIS) analysis. A number of rigorous analyses have been conducted using the system including historical overflow maps, a corrosion study, the small pipe capacity study, and for determining priority locations for collection system renovations among others. The AM/CADD system has also been used for many applications beyond the scope that was initially envisioned. In-house 6/28/01 U:\PPR\SM\JJMCLOSEOUTOF15CIPSREV2.wPD Page 9 of 11 ATTACHMENT 2 (cent.) CAPITAL PROJECTS TO BE CLOSED OUT GENERAL IMPROVEMENTS PROGRAM design and drafting of many large and small sewer renovation jobs including Lakewood, South Orinda, Martinez, and Lafayette, and the annual Rossmoor manhole replacement were done on the system. Literally thousands of position paper maps, easements, and special purpose maps have been produced on the system. Products have been created in support of all Departments at the District. Many applications are in development including the Electrical/lnstrumentation As-Is conversion, the Underground Piping Information system, and the Geographic Data Integration (GO!) program. The majority of accurate maps the Board has seen over the last 10 years were produced on the AM/CADD system. . The Disaster Command Center project, DP 8160 was started in 1993 to create an incident command center to be used in the event of an emergency. The center is designed to be compliant with both EPA and OSHA guidelines. Further development may be pursued in the future under a new project. 6/28/01 U :\PPR\SM\JJ MCLOSEOUTOF 1 5CIPSREV2. WPD Page 1 0 of 11 ATTACHMENT 2 (cant.) CAPITAL PROJECTS TO BE CLOSED OUT RECYCLED WATER PROGRAM . The Recycled Water - Industrial project, DP 7163, provided the preliminary planning effort needed to investigate potential technologies for the removal of nutrients (ammonia and phosphorous) from the secondary effluent to provide recycled water to industrial customers. Pilot studies were conducted utilizing a managed aquatic system, and, literature searches were conducted to create a technological basis to recommend the preparation of a Facility Plan and Business Plan for a full scale 5 MGD industrial recycled water project. Additionally, the CCCSD/CCWD Industrial recycled water RWOCB operating permit was updated and reviewed. 6/28/01 U:\PPR\SM\JJMCLOSEOUTOF15CIPSREV2.wPD Page 11 of 11 -_..,-------~._.._,._,--~--,._.._~--"----"--"--..'.._."-"...,..__.._,._..__."._-"..-_..._~----'------~'-"'"'..,--'"-_.__.__.".._---,..._.__.._~._'~_.__..__.._....-"_.,-~..._._.,._._-,_._-_.,-- --._,...~-- Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 8.d. ENGINEERING Type of Action: AUTHORIZE AGREEMENT Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AGREEMENT WITH MICHAEL WILLIS ARCHITECTS TO PROVIDE CONTINUATION OF DESIGN SERVICES FOR THE MULTIPURPOSE FACILITY, DISTRICT PROJECT 8191. Submitted By: Jade Sullivan, Assistant Engineer Initiating Dept./Div.: Engineering/Environmental S REVIEWED AND RECOMMENDED FOR BOARD ACTION: ~~ -~ ISSUE: Board of Directors' authorization is required for the General Manager to execute professional service agreements or agreement revisions for amounts greater that $50,000. RECOMMENDATION: Authorize the General Manager to execute Revision No.2 to Agreement No. 021087AV with MWA for an additional $26,330 for additional work under the agreement. FINANCIAL IMPACTS: The Agreement No. 021087 A V for the design services with Michael Willis Architects (MWA) will be increased by $26,330 bringing the total of this agreement to $76,000. ALTERNATIVES/CONSIDERATIONS: Under the original design agreement, MWA was to provide design services for the Multipurpose Facility project change order. MWA has performed additional services and incurred additional costs related to performing scope items beyond the intent of the original scope of services. BACKGROUND: On August 29, 2000, District staff approved an agreement with MWA to provide design services for the District Training Center (District Project 81 91 ). District staff planned to negotiate a change order to the existing Laboratory Improvements Project (District Project 7172) with the contractor, Arntz Builders, to construct a District Training Center, now the Multipurpose Facility, in the location of the existing laboratory. The change order documents were prepared with the conceptual approval of the District Space Planning Committee. The project was renamed the District Multipurpose Facility. The original agreement with MWA, including Revision No.1, is for $49,670. During the final design, the following additional services were provided by MWA to complete the change order documents: 6/28/01 U:\PPr\McGowen\MW Adesign. wpd Page 1 of 2 POSITION PAPER Board M88ting Date: July 5, 2001 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AGREEMENT WITH MICHAEL WILLIS ARCHITECTS TO PROVIDE CONTINUATION OF DESIGN SERVICES FOR THE MULTIPURPOSE FACILITY, DISTRICT PROJECT B191. · an additional cost estimates was prepared; · a structural assessment and design of the roofing system and new partition walls were performed; · additional architectural, mechanical, plumbing and electrical design services were provided. On February 21, 2001, staff submitted the change order design documents to Artnz Builders and requested an itemized quotation for changes above the existing project contract sum. District staff with Michael Willis Architects negotiated design changes for the proposed change order to bring construction cost closer to the Capital Budget estimate. Staff has now negotiated a change order with Artnz Builders for the Multipurpose Facility and is bringing this to the Board in a separate Position Paper. These additional design costs resulted in a savings in project expenses. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute Revision No.2 to Agreement No. 021 087AV with MWA for an additional $26,330 which would result in a total cost for work under this agreement of $76,000. 6/28/01 U:\PPr\McGowen\MW Adesign. wpd Page 2 of 2 NUL TIPURPOSE FACILITY BOARD PRESENTA TION ;m:;:;:r*~;:;~;:;:::~=~~:::;~~~~:::::::::::::::::::::::::::::::;::;::::::::::::::::;:;:;:: 2001 JULY 5, MULTIPURPOSE FACILITY OPPORTUNITIES VS. CONSTRAINTS ~,<<<<-,":-'''''':->>.'':->>:':':':':-:-:-:':-:':-:':':-:'~':'~~'~':':':':':':' .:.:. .:.~.~.~.:.:.:.:.:.:.:.:.:. ty vacated July Plan exists for demolition and clean-up work, basic carpet and painting. pportunities >> Existing Laboratory Facili 2001. >> ty. Opportunity is now to do more extensive renovation and create Multipurpose Facili >> MUL TIPURPOSE FACILITY OPPORTUNITIES VS. CONSTRAINTS cont. I U J I III II !! 11 J Jill J 111111111 U I; III 0 II; IIIII C; lUlU ;;; ~I ~ ~I:; ~ ~:: ~;: :: :: >>:<<0:-:':-"":':-:-:-:-:-:':':-:':':':':':-:':':':':-:':':':-:':':':':.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:':0:';':':':':';':':':':';';':':-:-:-:<<':-'-":':: ::-::-:. -,:-:-:-: Constraints >> Just passed significant multi-year rate . Increase. >> Future O&M cost uncertainties. >> Future capital expenditure needs. LABORA TOt1Y REMODEL PER ARNTZ EXISTING CONTRACT NEW EXIT DOOR ~ NEW WALL STORAGE ROOM 140 SF N~W.....()PEN AR,t;.AMsETI~G .& TRAINING ROOM 2350 SF MEN'S RESTROOM WOMEN'S RESTROOM AVAILABLE OFFICE 160 SF ~ NORTH MUL TI-~ JRPOSE FACILITY EXISTING RAMP ACCESS TOTAL FACILITY AREA: 2700 SQ. FT MAIN AUDIO/VISUAL MEETING ROOM #1 ROOM 100 (Capacity 64) 960 Sq. Ft. -- STORAGE ENTRYWAY EXISTING WOMEN'S RESTROOM - EXISTING MEN'S RESTROOM MEETING ROOM #2 ROOM 101 (Capacity 52) 785 Sq. Ft. - STORAGE AND OFACE CORRIDOR ~ NORTH WHY NOW? IMPLEMENTATION AS A CHANGE ORDER SAVES MONEY. . . . $ 15/000 $ 15/000 $ 20/000 $ 50/000 $100/000 Estimated Savings Mobil ization Bid Documents lition Prepare Formal Bid and Award Additional Demo mplementation would cost $100,000 more. . I Future MUL TIPURPOSE FACILITY gCONSTRUCTION COST BREAKDOWN .... '.... :~:::iF:-: I lUll III ! lJJllm Ilummmll umammummcmmmm:mem:::*:-:-.'X.....':-.-.:.:-:->>x.;.:.:.:.:-:.:.:.:-:-:.:. ..................................................................-...-...,-.-............ ............................. ,....... .... e:redit for work in Lab Project -$ 50,000 Acoustical 21,000 HVAC 71,000 Electrical/Wiring 85,000 Carpentry / Structural 55,000 Finish Work 88,000 Total Construction Cost $370,000 IS CHANGE ORDER QUOTE A GOOD VALUE? Multipurpose Facility 2,700 square feet @$370,000 Approximately $140jft.2 Laboratory Facility 8,700 square feet @ $4,300,000 Approximately $500jft.2 . 2 $ 180jft. $150 . . Typical East Bay Office Building . 2 $200jft. $120 . . Oakland s College, ill M . 2 $ 195jft. $115 . . UC Berkeley . IS NOW. BASIC QUESTION... DO WE NEED THIS FACILITY? ~:::lF SO, THE TIME TO CONSTRUCT ~pproximat~'iy "$'20~'O()'O""'p~~~~';~~ti ng outside facilities for training and recruitment testing. . District-wide High turnover has increased need for training and recruitment. . not Numerous large meetings held in the Board Room, conducive to informal meetings. . Specia Opportunities to host functions for CWEA, Districts, etc. not available. . renovation In Current Laboratory contract includes some this area...work to be done in August. . WHERE DO WE GO FROM HERE? ~ ~ ~ ~ Q,: :~ OQ: Q: m..:. H a ~ ..>>>>:<<<<->>:<<.:.:.:-:.:.:.:.:.;.:.:.:.:-:.:-:.:.:.;.:.:.: .;.:.:.:.:.:.;.:.;.:.;.:.:-:.:.; .:.:.;.:.:.: .:. . Authorize change order and build Multipurpose Facility? . Postpone project and do demolition and renovation currently included in Laboratory Improvements Project? . ty? Competitively bid Multipurpose Facili . Request additional information and bring back to Board (decision needed July 19 or August. 9)7 . MULTIPURPOSE FACILITY TOTAL PROJECT COST BREAKDOWN <<<<<<-",.,.,,:->>:<<:.:-:-:-:.:.:-:.:-:.:.:.:.:.:.:.:.:.:.:.:.:.:.;.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.: .:~11:~::i Preconstruction Expenditures MWA Agreement MWA Additional Design Costs District Staff Costs Subtotal . Construction Expenditures Construction Change Order Contingency (150/0 Construction) Construction Support (MWA) Construction Management Subtotal TOTAL PROJECT COST $ 49,670 $26,330* .$ 21,330 $ 97,330 $320,000 $ 48,670 $ 20,000 na $388,670 $486,000 * Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: 8.e. ENGINEERING Typa of Action: AUTHORIZE CHANGE ORDER Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A $320,000 CONSTRUCTION CONTRACT CHANGE ORDER TO ARNTZ BUILDERS, ON THE LABORATORY IMPROVEMENTS PROJECT (DP 7172) AND AUTHORIZE CONSTRUCTION SERVICES AGREEMENT WITH MICHAEL WILLIS AND ASSOCIATES ARCHITECTS FOR THE MULTIPURPOSE FACILITY, DISTRICT PROJECT 8191. Submitted By: Jade Sullivan, Assistant Engineer Initiating Dept./Div. : Engineering/Environmental Ser REVIEWED AND RECOMMENDED FOR BOARD ACTION: ~~~ c. Swanson -(J9lr: A. F ell ISSUE: Authorization of the Board of Directors is required for the General Mana execute a construction change order in an amount greater than $50,000. RECOMMENDATION: Authorize the General Manager to execute a $320,000 construction contract change order to Arntz Builders on the Laboratory Improvements Project- and a revision to the existing construction services agreement with MWA for the Laboratory Improvements Project for $20,000 to provide construction services during the construction of the change order. FINANCIAL IMPACTS: The additional funds needed for the project are $178,000. AL TERNATIVES/CONSIDERATIONS: The Board may wish to consider the following: · Authorize the change order on the Laboratory Improvements Project (District Project 7172) for a District Multipurpose Facility based on the Needs Assessment (Attachment 1). · Not authorize the change order and direct staff to competitively bid this project. · Postpone the project. BACKGROUND: On August 29, 2000, District staff approved an agreement with Michael Willis Architects (MWA) to provide design services in the preparation of the District Training Center (District Project 8191) change order documents and specifications. During the process, the array of needs identified led to a renaming of the project to District Multipurpose Facility. The plans for this facility were prepared with the conceptual assistance of the District Space Planning Committee involving all areas of the District. These documents entail the construction of a multipurpose facility in the existing 6/28/01 U:\PPR\SM\CHGORDERNWPPR. WPD Page 1 of 8 POSITION PAPER Board Meeting Date: July 5, 2001 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A $320,000 CONSTRUCTION CONTRACT CHANGE ORDER TO ARNTZ BUILDERS, ON THE LABORATORY IMPROVEMENTS PROJECT (DP 7172) AND AUTHORIZE A CONSTRUCTION SERVICES AGREEMENT WITH MICHAEL WILLIS AND ASSOCIATES ARCHITECTS FOR THE MULTIPURPOSE FACILITY, DISTRICT PROJECT 8191. laboratory space to meet various District needs. The work defined in the change order would include additional HV AC improvements, structural and electrical improvements, data cabling, subfloor replacement, an operable sliding room partition, a kitchen, and preparing the facility for the installation of a centrally control audiovisual system. On February 21, 2001, staff submitted the change order design documents to Artnz Builders and a request for an itemized quotation for the design changes in the existing contract for the proposed change order. After receiving Board input, District staff has negotiated a reduced change order cost of $320,000 to the existing Laboratory Improvements Project (District Project 7172) to construct a Multipurpose Facility. The change order would incorporate the existing construction contract work in this area with the proposed change order for the Multipurpose Facility. The present work under contract as part of the Laboratory Improvement Project entails the removal of old casework and lab equipment, and provides basic carpet, painting, ceiling tiles, and lights to provide a single room space. While providing a large indoor area, this space would not be suitable for all the needs identified. For this reason staff recommends proceeding with the change order for the Multipurpose Facility. However, if the Board chooses to rebid this project, the District would incur the additional costs of approximately $100,000 for design changes, bidding the project, contractor mobilization, and reworking the existing laboratory space reconditioned under the present construction contract. District staff would provide construction management and inspection services as part of the existing work under the Laboratory Improvements Project. Michael Willis Architects (MWA) would provide construction support services. MWA prepared the plans and specifications for change order and also provided architectural design and construction services for the Laboratory Improvements Project. Because of their knowledge of the project, MWA is recommended to provide office engineering services for the construction phase of the project. A Professional Services Agreement in the amount of $20,000 has been negotiated with MWA. The funds needed to complete this Multipurpose Facility, as shown in Attachment 1, are $409,000. The design and construction of this project are included in the 1999 - 2000 and the 2000 - 2001 Capital Improvement Budget Addendum presented to the Board last year. 6/28/01 U:\PPR\SM\CHG ORDERNWPPR. WPD Page 2 of 8 POSITION PAPER Board M88ting Date: July 5, 2001 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A $320,000 CONSTRUCTION CONTRACT CHANGE ORDER TO ARNTZ BUILDERS, ON THE LABORATORY IMPROVEMENTS PROJECT (DP 7172) AND AUTHORIZE A CONSTRUCTION SERVICES AGREEMENT WITH MICHAEL WILLIS AND ASSOCIATES ARCHITECTS FOR THE MULTIPURPOSE FACILITY, DISTRICT PROJECT 8191. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a $320,000 construction contract change order to Arntz Builders on the Laboratory Improvements Project- and a revision to the existing construction services agreement with MWA for the Laboratory Improvements Project for $20,000 to provide construction services during the construction of the change order. 6/28/01 U:\PPR\SM\CHGORDERNWPPR. WPD Page 3 of 8 ATTACHMENT 1 MULTIPURPOSE FACILITY CHANGE ORDER ADDITION PERCENT OF ESTIMATED CONSTRUCTION ITEM DESCRIPTION TOTAL COST 1. Change Order Negotiated . Change Order to Construction $320,000 Contract . Contingency at 15 percent $48,670 Subtotal $368,670 100.0 2. Construction Management (In-House) . Construction Support Services, $20,000 5.4 MWA . Construction na Management/Inspection 3. Preconstruction Expenditures . Planning and Design - MW A Agreement $49,670 - Force Account $21,330 . Additional Design, MWA $26,330 Subtotal $97,330 26.4 4. Total Project Cost Estimate $486,000 131.8 5. Funds Authorized to Date $77,000 6. Total Allocation of Funds to Complete $409,000 Project * Included in Laboratory Improvements Project. U:\PPR\Bertera\changeorderl. wpd Page 4 of 8 Central Contra Costa Sanitary District June 28, 2001 FROM: TO: HONORABLE B VIA: CHARLES W. SUBJECT: NEEDS ASSESSMENT FOR MULTI-PURPOSE ROOM The District's Space Planning Task Force has been meeting for the past eight months to review the needs for additional or remodeled areas within the District. After reviewing present and future needs, it appears the District has sufficient office space on the premises for the foreseeable future. As part of the space analysis, employees and staff were asked about their needs for additional usable space with the goals of being both cost efficient improvements and increasing workforce productive. The results of the survey indicated that the most recognized need at the District is for a room that would allow events, training, or meetings that could accommodate larger groups. District Training Needs Since the District's laboratory is being relocated, the "old" lab space seemed an ideal choice to consider to meet this need. The space is centrally located, large enough to accommodate large groups, and requires no major structural modifications. The District is currently unable to host outside groups, hold large meetings, to conduct tests during recruitments, to provide public education events, or to conduct in-house training for groups of more than twenty people. Such training events have been held off-site or in the Board Room when available. For an event requiring the Plant, CSOD or Headquarters Office Building personnel to meet, the District must find a larger space off-site. The District has no suitable facilities for catered events, nor is there a room outfitted with permanent set up for major training exercises. Computer training is primarily done off-site due to a lack of network wiring and computer facilities. District-wide training is usually done in groups of twenty, which means instructors provide extended sessions instead of a more cost-effective three or four. District staff spends a considerable amount of time and funds locating and renting facilities throughout the service area for larger-scale activities. U:\PPR\SM\CHGORDERNW.wPD Page 5 of 8 Recommendation District management would recommend to the Board to remodel the existing laboratory space as a multipurpose room. This space, as detailed in the attachment, will provide an area for seminars, training sessions, presentations, conferences, District Disaster Control Center, tour briefings and forums for the public and District staff. Project Options One option reviewed by staff would be to postpone this project until the financial resources of the District improve. However, due to the laboratory relocation in July 2001, the District would save considerable funds by acting at the present time. Funds are available in the Laboratory Project to remove equipment, and clean and paint the basic space. These funds would be incorporated into the Multi-Purpose Room construction. The contractor is presently on-site and available now, and this would eliminate contractor mobilization costs and project startup expenses. The District contract management staff is also available. A second option, postponing the project for future construction, would require rebidding the project, tearing up the floors and carpets installed as part of the Laboratory Project (or receiving a modest credit from the contractor), possible redesign to reconfigure the HV AC system, installation of new wiring and computer cable, and possible seismic structural upgrades. The project would have to bid, and an extensive bid package put together. A new contractor would have to mobilize and start work with no prior knowledge of the building. Cost Feasibility While it is not possible to estimate these expenses exactly, considerable savings would be achieved by using the change order process with the onsite contractor. The cost of the additional construction work could be legally done in this manner. The estimated cost of the construction change order which has been negotiated with the contractor is $320,000. This construction cost is about $190 per square foot, which includes modification of the heating and air-conditioning system, computer and data cable installation, additional structural bracing, and the addition of a sliding partition wall to separate the space for multiple uses in addition to normal remodeling expenses. District management, advised by the Space Planning Task Force, recommends the Board consider making the existing laboratory a usable space for multiple purposes as outlined above. U:\PPR\SM\CHG ORDERNW. WPD Page 6 of 8 ATTACHMENT MULTIPURPOSE FACILITY USE POTENTIAL: . Inter-agency Meetings Public Meetings Board Workshops Open Houses Public Outreach for District Programs Public Information Tour Orientations Schools Scouts Service Clubs Professional Associations Foreign Visitors Public Education Programs Project Meeting/Public Information Sessions Emergency Services Center Training (for example) . . . . . . . . . 1. District-wide Problem Solving Team Building Conflict Resolution Customer Service 2. Safety CPR Respirator First Aid Safety Orientations 3. MIS Computer Software--Beg, Intermediate, Advanced Excel Access Word Groupwise Powerpoint 4. Human Resources Performance Appraisal Harassment/Diversity Employee Orientations Manager/Supervisor Topics, i.e., FMLA, Progressive Discipline U;\PPR\SM\CHGORDERNW. WPD Page 7 of 8 5. Plant Operations Department Certification Testing Operation and Maintenance System Training Divisional meetings . Testing (currently renting rooms at local schools and Centre Concord for nights and weekends) Interviews CWEA Professional Development Seminars Staff functions United Way Safety or Employee Recognition Events Retirement Functions Receptions Department-wide Meetings Supervisors' Forum Strategic Planning/Continuous Improvement Meetings and Events Community Resource Space . . . . . . . . U:\PPR\SM\CHGORDERNW.WPD Page 8 of 8 (;entral Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 Type of Action: DIRECT STAFF No.: 9.a. TREATMENT PLANT Subject: DIRECT STAFF REGARDING THE EXEMPTION OF DISTRICT FACILITIES FROM INCLUSION IN ROTATING OUTAGE BLOCKS BY PACIFIC GAS AND ELECTRIC COMPANY Submitted By: James L Belcher Initiating Dept./Div. : POD/Plant Maintenance RECO~BOARD ACTION, ISSUE: District facilities are not categorically exempt from Pacific Gas and Electric Company's (PG&E) rotating outage block (ROB) program. To preserve the District's options, staff has petitioned the California Public Utilities Commission (CPUC) for exemptions for 23 District facilities. Should staff continue to pursue the exemption process? This is a Board-level decision. RECOMMENDATION: Direct staff to pursue the exemption of District facilities from inclusion in PG&E's ROB program. FINANCIAL IMPACTS: There are no immediate impacts if all facilities are exempt. Moderate impacts to expedite pumping station reliability projects for non-exempt facilities. Significant impacts if discharge permit violations (spills) occur as a result of power outages. AL TERNA TIVES/CONSIDERA TIONS: Retract some or all submitted petitions and do not pursue exemption status. Participate in the ROB program. BACKGROUND: PG&E has notified the District that the treatment plant, as well as all District pumping stations, are included in the rotating outage block program. An exemption to this status requires the District to petition the CPUC for approval. The PG&E ROB program provides state-wide systematic load reduction when electrical demand exceeds a safe reserve. Rotating outage blocks are numbered from 1 to 14 with block 50 assigned to exempt facilities. Currently, all but three pumping stations are in block 50 due only to their location. This block designation could be changed at any time. The treatment plant, powered from an industrial transmission line, was included in the ROB program on June 12, 2001. 6/28/01 G :\Belcher\RotatingOut.J LB. wpd Page 1 of ~. POSITION PAPER Board Meeting Date: July 5, 2001 Subject: DIRECT STAFF REGARDING THE EXEMPTION OF DISTRICT FACILITIES FROM INCLUSION IN ROTATING OUTAGE BLOCKS BY PACIFIC GAS AND ELECTRIC COMPANY The California Public Utilities Commission provided a process that allowed all non- residential customers to petition for exemption status. Petitions needed to be submitted prior to June 1, 2001 to be considered valid. To preserve the District's options, staff submitted petitions for 22 District facilities and the treatment plant in a timely manner. The petitioners will be notified by August 2, 2001 of the results. The Board of Directors' has the option, at this time, to: 1 . Withdraw all exemption petitions 2. Withdraw some exemption petitions 3. Await the decision of the California Public Utilities Commission As a result of Year 2000 (Y2K) preparations, and because of the Board's support of District facilities for wet weather reliability, many of the affected facilities have back-up power generation. When all equipment is operational, the treatment plant has ample on- site power generated from the Cogeneration System and the standby power generators. Attachment 1 shows the status of the affected facilities. The ROB assignment, status of on-site power generation capability, and dry weather holding capacity for each facility is shown. All but nine of the pumping stations have on-site, back-up generators sized for full operation with appropriate automatic start, load, and switching equipment. The pumping stations have loss-of-power indication with the current telemetry system. These generator systems are maintained, inspected, and load-tested frequently. The reliability of District facilities is compromised during every occurrence of a power loss. Not withstanding the high level of attention Pumping Station Operators give to their on- site power generation systems, each and every power outage exposes the District to a potential permit violation. A permit violation would occur when equipment or switching systems fail to respond correctly. Each power outage will require a near perfect switch to back-up power operation. Standard operating procedure for Pumping Station operations is to inspect the affected pumping station during every power outage. Multiple outages at the same time will require additional Pumping Station Operator support. 6/28/01 G :\Belc her\RotatingO ut.J LB. wpd Page 2 of 4 POSITION PAPER Board Meeting Date: July 5, 2001 Subject: DIRECT STAFF REGARDING THE EXEMPTION OF DISTRICT FACILITIES FROM INCLUSION IN ROTATING OUTAGE BLOCKS BY PACIFIC GAS AND ELECTRIC COMPANY Staff advises the Board that the prudent course of action is to continue the exemption petition process. A second decision point will occur subsequent to the CPUC's, August 2, 2001, decision on the District's exemption request petitions. RECOMMENDED BOARD ACTION: Direct staff to pursue an exemption of District facilities from inclusion in PG&E's rotating outage block program. 6/28/01 G: \Belcher\RotatingO ut.J LB. wpd Page 3 of 4 -0 OJ I.C (I) +>- o * Installation scheduled for summer 2001 -t) +>- CURRENT ON-SITE MAXIMUM HRS DISTRICT FACILITY ROB GENERATION W/O POWER TREATMENT PLANT 06 Q Yes 1 ACACIA PUMPING STATION 03 L Yes 2 2 WEST BRANCH PUMPING STATION 07 D *No 2 3 MALTBY PUMPING STATION 12 L Yes 3 4 FAIRVIEW PUMPING STATION 50 Yes 1.5 5 MARTINEZ PUMPING STATION 50 Yes 1 6 BUCHANNAN NORTH PUMPING STATION 50 No 4 7 BUCHANNAN SOUTH PUMPING STATION 50 No <0.5 8 MORAGA PUMPING STATION 50 Yes <0.5 9 SAN RAMON PUMPING STATION 50 Yes 0.25-0.5 10 BATES BLVD PUMPING STATION 50 No 0.5 11 VIA ROBLES PUMPING STATION 50 No Static bypass N/A 12 ORINDA CROSSROADS PUMPING STATION 50 Yes 0.5 13 FLUSHCLEAN PUMPING STATION 50 Yes 1 14 LOWER ORINDA PUMPING STATION 50 Yes 0.5 15 LAWRENCE ROAD NORTH PUMPING STATION 50 Yes 2 16 LAWRENCE ROAD SOUTH PUMPING STATION 50 Yes 8 17 CONCORD INDUSTRIAL PARK PUMPING STATIO 50 Yes 1 18 BATES AVE PUMPING STATION 50 No Static bypass N/A 19 CONCORD NORTH METER STATION 50 No N/A 20 CL YDE PUMPING STATION 50 No 1 21 SLEEPY HOLLOW PUMPING STATION NA No 2 22 WAGNER RANCH PUMPING STATION NA No 2 I I District Facilities Not Exempt Must Petition CPUC F Treatment Plant and Pumping Stations C Included Treatment Standby Power Load Shed 1 Thirteen Facilities Have On-Site P Nine Facilities He Mobile Connecti 2. Await Decision cI August 2, 200 Impact: No Imm . 1. Withdraw Part or Impact: Expedite Pu Reliability Projects 2 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 5, 2001 No.: IO.a. HUMAN RESOURCES Type of Action: HUMAN RESOURCES Subject: DIRECT STAFF TO SECURE THE SERVICES OF AN ARBITRATOR IN ACCORDANCE WITH THE DISTRICT'S GRIEVANCE PROCEDURE Submitted By. CATHRYN R. FREITAS, HUMAN RESOURCES MANAGER REWEWED AND RECO~D FOR BOARD ACTION: fd(it C. Freitas G. Davis Initiating Dept./Div.: Administrative/Human Resources ISSUE: When a grievance has been appealed to the Board level, the Board must empl a neutral third party to hear the matter and recommend action to the Board in accordance with the Memorandum of Understanding (M.O.U.) Between the District and the C.C.C.S.D. Employees' Association, Public Employees' Union, Local One, Article III, Section 2.5. RECOMMENDATION: Authorize staff to secure the services of an arbitrator in accordance with the District's grievance appeal procedures. FINANCIAL IMPACTS: The District and Union share the cost of the arbitrator and court reporter for grievances. An estimated cost of these services is $2000. AL lERNA llVES/CONSIDERA liONS: None. BACKGROUND: The Union maintains that a document with Union signatures is required as part of meeting and conferring on a subject. In the case of the job classification descriptions which were modified with employee input and subsequently adopted by the Board in January, 2001, the Union believes they have a right to again meet and confer on the changes to the descriptions because they never officially signed a document agreeing to the changes. The changes were met and conferred upon in Fall, 1999 and implemented as part of the negotiated results of the salary survey for Union positions in Spring, 2000. In matters that are appealed to the Board, the M.O.U. reads as follows: liThe Board shall employ a neutral third party to hear the matter and recommend action to the Board. The District and the Union shall equally share the cost. ...The Board may adopt, reject, or modify the recommendation of the appointed neutral third party. The decision of the Board is the final action of the District." 6/27/01 C:\WPDocs\rolley. favalgrvppr.wpd Page 1 of 2 POSITION PAPER Board Meeting Date: July 5, 2001 Subject: DIRECT STAFF TO SECURE THE SERVICES OF AN ARBITRATOR IN ACCORDANCE WITH THE DISTRICTS GRIEVANCE PROCEDURE RECOMMENDED BOARD ACTION: Authorize staff to secure the services of an arbitrator in accordance with the District's grievance appeal procedures. 6/27/01 C:\WPDocs\rolley.favalgrvppr.wpcI Page 2 of 2