The URL can be used to link to this page

Home My WebLink AboutAGENDA BACKUP 09-02-99 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 2, 1999 N~: 3.a. CONSENT CALENDAR Type of Action: APPROVE AND EXECUTE GRANT OF EASEMENT Subject. APPROVE AND EXECUTE GRANT OF EASEMENT WITH CONTRA COSTA COUNTY, JOB 5371, PARCEl. 3, ALAMO AREA Submitted By. John Mercurio, Management Analyst Initiating Dept.lDiv.: Engineering Dept./Environmental Services Div. ~ ~Z.b ~P>- C.Swanson ~a- REVIEWED AND RECOMMENDED FOR BOARD AcnON: ISSUE: Easements which are granted by other public agencies require specific approva~ Board of Directors. BACKGROUND: The subject easement is for a proposed sewer later~ which win serve an existing single-family residence near Lunada Glen in Alamo. This easement is located on the former Southern Pacific Railroad right-of-way presently owned by Contra Costa County. The District accepted easements from the County in 1988 in conjunction with the San Ramon Valley Interceptor Project which have the same- conditions as the subject easement. The conditions are reasonable while they afford protection to the County for the future use of their property as a transportation corridor. The conditions are in agreement with the District's usual operating procedures as induded in our Standard Specifications. There is no relocation clause in the subject easement. The developer has paid the District's easement processing fee. This project (the proposed agreement) has been evaluated by staff and determined to be exempt from the California Environmental Quality Act (CEOA) under District CEQA Guidelines Section 18.6, since it involves a minor alteration in land use limitations. RECOMMENDATION: Approve and execute Grant of Easement from Contra Costa County, Job No. 5371, Parcel 3, and authorize the Grant of Easement to be recorded. 8/25/99 U:\PPr\Raposa\Easement J0b5371.wpct- Page 1- of 2 Location ~ N , c "" "" ~ o .J:: c e ., ~ Q) ..- "t:> C o "i o 6- ..- Q. :> '" "" c Q) ..- .:;, o , 40 , ~ ~ CO ~....A. ~10 CO ~~ ~~ }7 co~ ~ ~~ FEET ~ [UJ ~ o..SS~ ~~ G' N'(j ~~I),. "CO P.O.C. @ u ~ ~ Central Contra Costa Sanitary District en .... i:i> o en en \!! <:, ='t ~~ EN Approve and Execute Grant of Easement from Contra Costa County Job 5371, Parcel 3, Alamo Area ATTACHMENT Page 2 of 2 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 2, 1999 No.: 3. b. CONSENT CALENDAR Type of Action: ACCEPT ANNEXATION FOR PROCESSING Subject: AUTHORIZATION FOR P.A. 99-13 (DANVILLE) TO BE INCLUDED IN A FUTURE FORMAL ANNEXATION TO THE DISTRICT Submitted By: John Mercurio, Mgmt. Analyst Initiating Dept./Div. : Engineering/Environmental Services Division '.brio ~ tlPB- A. Farrell Lead Agency REVIEWED AND RECOMMENDED FOR BOARD ACTION: Parcel Area Owners/Address Parcel No. & Acreage Joseph M. Castro III 162 Sonora Avenue Danville, CA 94526 208-033-01 5-8 (.3443 Ac.) Remarks 99-13 Danville (98C2) Existing house with a failing septic system; must connect to the public sewer system. Project is exempt from CEQA. CCCSD RECOMMENDATION: Authorize P.A. 99-13 to be included in a future formal annexation. 8/16/99 U:\PPr\Auth.PA 99-13.PP.wpd Page 1 of 2 I" ,/" k( ~ VA'~2<~~ - LOCATION MAP y~ ~-=< '--- ~./ ~ ."" ~ Yo ~ ~ J 0 ,\)IW f::G'-J V:: ---j ---1L: \.------' ~>-" ~ :0l "" ;p; ~ 1,. ~ II III / ~ ~ ) ~- ~\ V --' ~~E~"~\~I II! ~'" ~ >- "- h -' TS "'-< g '( )' )' (c "0 - 1111---1 1 r t\:I.f ~~ - ,) '.'" N~"- I/'- ~':-;j >.;:~ 0 ~ h == 1111// .-== · ~~ ></~)Z ~> i~ - I111 K:~ ,~.N' h;. ~ ~~ '"'>l ~ - ,,~i ':;} ~\III \< M\~ --- J IIf\ --' 'Z I R \;;- I 'j Ir- ,,'~ '- ;,f rJI Jr. - .J;= I ~,~ fg~ ,{\ I I I I I ~ ~ PI\\ #, ,.m 1 L I ~ ~ti\.l~il:, I I ~" H ~~ '- i ~ ~~ if j~/ (7<) \ "- ~l1rlIA~\'~ ~rK ~v- c: 0> " > o ~ g o '" ,i c: o /' Q. o ~ '" c: c: o o o /' '" Q. o E 13 Q. '" ~ Central Contra Costa Sanitary District ATTACHMENT o '" :t PROPOSED ANNEXATION P .A. 99-13 0> 0> $ " , c:<:> ~~ o ' ~'" 0>'" Page 2 of 2 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 2, 1 999 No.: 3.e. CONSENT CALENDAR Type of Action: ACCEPT ANNEXATION FOR PROCESSING Subject: AUTHORIZATION FOR P.A. 99-14 (DANVILLE) TO BE INCLUDED IN A FUTURE FORMAL ANNEXATION TO THE DISTRICT Submitted By: John Mercurio, Management Analyst Initiating Dept./Div. : Engineering Dept./Environmental Services Division REVIEWED AND RECOMMENDED FOR BOARD ACTION: ~ Parcel Area Owners/Address Remarks Lead Agency No. Parcel No. & Acreage 99-14 Danville Beverly Shepard Existing house with a CCCSD (98A1) 489 Harper Lane failing septic system; Danville, CA 94526 must connect to the 201-240-004 public sewer system. (0.38 Ac.) Project is exempt from CEQA. RECOMMENDATION: Authorize P.A. 99-14 to be included in a future formal annexation. 8/16/99 U:\PPr\Raposa\Accept Annex 99-14. wpd Page 1 of 2 a. ." ~ Q) e- o -'" ,J c: o " Q. o S 80 Q) c: c: g FEET -;;; Q. o ji U Q. Ul ~ Central Contra Costa ~ Sanitary District i ~ ~ o ~ ~ ...."\ .... \ ...."" \ .... \ .... \ ...."" \ .... \ ........~"" \\ .... \ // \. ' , .... ~ \ ....""a \\ //~0~ \ ..../""0~ .... .... .... .... .... \~~ \:1'/\ \ ~...<\ \\p...<\ '0 \ \~ \ 0....~~/. .... ~~// ~<<..../ C\'/"" .... ATTACHMENT 0> 0> \!! ." , C:'-' ~~ o . ~'" "'''' PROPOSED ANNEXATION P.A.99-14 Page 2 of 2 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Ollte: September 2, 1999 No.: 3.e. CONSENT CALENDAR Type of Action: AUTHORIZE ATTENDANCE Subject: AUTHORIZE ATTENDANCE OF WAYNE MINER AT A MANAGEMENT ACTION PROGRAMS WORKSHOP IN NAPA AT A TOTAL COST OF $2,715 Submitted By: John C. Pearl, Plant Maintenance Division Manager REVIEWED AND RECOMMENDED F7RD AcnON, ~ct rdJd Initiating Oept./Oiv. : Plant Operations Department/Maintenance ISSUE: Approval by the Board of Directors is required for unbudgeted travel for conferences or training if the expense will exceed $500. BACKGROUND: The Plant Operations Department (POD) requests authorization for Wayne Miner, Plant Maintenance Superintendent, to attend a Management Action Programs (MAP) Workshop, an intensive management training program. Mr. Miner was appointed to the position of Plant Maintenance Superintendent in August 1998. In his new position, he has a critical management role in the operation of the treatment plant and within Central Contra Costa Sanitary District (CCCSD). He is responsible for a staff of 36 employees and an annual budget of over $5 million dollars. The MAP Workshop will coach Mr. Miner in management skills, time management, and communication techniques. Plant Operations Department management believes that Mr. Miner will benefit from a high- quality management training course. MAP has developed an innovative method of managerial training; this method combines classroom lectures in management theory with an individualized program designed to elicit substantial managerial behavioral modification from participants. The program includes collecting feedback from subordinates, peers, and superiors of the participants; analyzing the feedback for consistency and applicability; and utilizing this feedback prior to the formal training sessions to tailor individualized managerial improvement actions plans. This program has a record of proven effectiveness, as reflected in the performance of over ten District employees who have attended such workshops. Mr. Miner's attendance at a MAP Workshop was approved in the 1998-1999 Technical Training, Conferences, and Meetings budget, but he was unable to attend the workshop in that fiscal year. A MAP Workshop in Napa, at a cost of $2,715, has been scheduled 8/26/99 Page 1 of 2 POSITION PAPER Board MfHlting Date: September 2, 1 999 Subject: AUTHORIZE ATTENDANCE OF WAYNE MINER AT A WORKSHOP ENTITLED MANAGEMENT ACTION PROGRAMS IN NAPA AT A TOTAL COST OF $2,715 for September 23 - 25, 1999. The MAP Workshop is not listed in the 1999-2000 Technical Training, Conferences, and Meetings budget and, therefore, needs Board approval. There are adequate funds in the Plant Operations Department Training Budget to cover the cost of this training. RECOMMENDATION: Authorize the attendance of Wayne Miner at the Management Programs Workshop at a cost of $2,715, to be held September 23 - 25, 1999, in Napa, California. 8/26/99 Page 2 of 2 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 2, 1999 No.: 3.d. CONSENT CALENDAR Type of Action: ADOPT APPROPRIATIONS LIMITS Subject: ADOPT A RESOLUTION ESTABLISHING THE 1999-2000 APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION Submitted By: Debbie Ratcliff, Controller Initiating Dept./Div. : Administrative/Finance & Accounting D. Ratcliff REVIEWED AND RECOMMENDED FOR BOARD ACTION: ~ d~ ISSUE: The Central Contra Costa Sanitary District is required to establish its appropriations limit in accordance with Article XIII B of the California Constitution. BACKGROUND: On August 5, 1999, the Board of Directors authorized posting a public notice of availability of documentation in support of the District's appropriations limit. As statutorily required, the public notice was made at least 15 days prior to the September 2, 1999 Board Meeting at which the adoption of the appropriations limit is recommended. The appropriations limit is increased annually by a factor comprised of the change in population combined with either the change in California per capita personal income or the percentage change in the local assessment roll from the preceding year due to local nonresidential construction. The Board must select between the per capita personal income, or the change in the local assessment roll due to local nonresidential construction, by a recorded vote. Last year the Board selected the change in the local assessment roll, which was the larger of the two percentages, for the calculation of the 1998-1999 appropriations limit. This approach allowed for a larger limit on the District's proceeds of taxes. The County Assessor has determined the nonresidential construction index for 1999-2000 to be 11.7 percent. The California per capita personal income percentage change is 4.53. The change in the local assessment roll of 11.7 percent is being used in the calculation of the 1999-2000 appropriations limit, to allow for a larger limit on the District's proceeds of taxes. The Sewer Construction Fund (Capital Fund) appropriations limit so computed is $39,804,402 for the 1999-2000 fiscal year. The District's proceeds of taxes are budgeted to be $5,759,000 for the 1999-2000 fiscal year. Interest on these taxes proceeds are estimated to be $140,000. Therefore, total 8/17/99 S:\ADMIN\POSPAPER\APPROP. WPD Page 1 of 3 POSITION PAPER Board Meeting Date: September 2, 1999 Subject: ADOPT A RESOLUTION ESTABLISHING THE 1999-2000 APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION tax proceeds plus interest is $5,899,000 which is well within the appropriations limit set for the 1999-2000 fiscal year. RECOMMENDATION: Adopt a resolution establishing the Sewer Construction Fund appropriations limit in the amount of $39, 804,402 for the 1999-2000 fiscal year, in accordance with Article XIII B of the California Constitution; select the change in the local assessment roll due to local nonresidential construction, for use in computing the appropriations limit. 8117/99 S:\ADMIN\POSPAPER\APPROP. WPD Page 2 of 3 RESOLUTION NO. 99- A RESOLUTION ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 1999-2000 WHEREAS, the Central Contra Costa Sanitary District is required under Article XIII B of the State of California Constitution to establish and adopt an Appropriations Limit for each fiscal year; and WHEREAS, the District has determined the Appropriations Limit of its Sewer Construction Fund (Capital Fund) for fiscal year 1999-2000 to be $39,804,402; and WHEREAS, the selection of the alternative growth factor between the per capita personal income or the change in the local assessment roll due to local nonresidential construction must be made by recorded vote; NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Central Contra Costa Sanitary District does hereby adopt the Appropriations Limit for said Fund in amount of $39,804,402 for the fiscal year ending June 30, 2000, based upon the selection of the change in the local assessment roll due to local nonresidential construction. PASSED AND ADOPTED this 2nd day of September 1999, by the District Board of the Central Contra Costa Sanitary District 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 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 PUBLIC HEARING TO RECEIVE COMMENTS ON THE NEGATIVE DECLARATION AND THE LOWER ORINDA PUMPING STATION IMPROVEMENT PROJECT SUGGESTED AGENDA September 2, 1999 I. Request staff report II. Public hearing A. Open public hearing B. Receive public comment C. Close public hearing III. Consider approval of the Negative Declaration and the renovation option of the Lower Orinda Pumping Station Improvement Project 8/25/99 H:\Design\PP\5237 Pub Hear.aja.wpd Page 1 of 5 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 2, 1999 No.: 4.a. HEARINGS Type of Action: PUBLIC HEARING; APPROVE NEGATIVE DECLARATION AND SELECT PROJECT ALTERNATIVE Subject: CONDUCT A PUBLIC HEARING AND CONSIDER APPROVAL OF A NEGATIVE DECLARATION AND SELECT A PROJECT ALTERNATIVE FOR THE LOWER ORINDA PUMPING STATION IMPROVEMENT PROJECT, DP 5237 Submitted By: Andrew Antkowiak Associate Engineer REVIEWED AND RECOMMENDED FOR BOARD ACTION: Initiating Dept./Div. : Engineering Dept./Capital Projects Div. ~W;'k @ . Ilecki W<r5 W. Brennan ISSUE: Board approval of appropriate CEQA documentation is required prior to select on of a preferred alternative for the Lower Orinda Pumping Station Improvement Project (DP 5237) BACKGROUND: The Lower Orinda Pumping Station, located approximately 200 feet southeast of Miner Road and Camino Pablo, within the Orinda Country Club, is one of a series of pumping stations that pumps wastewater out of the Orinda Valley to the District's wastewater treatment plant. The Lower Orinda Pumping Station is approximately fifty years old and requires extensive upgrading to accommodate projected future wet-weather flows and to achieve other efficiency, reliability, and safety objectives. The District has evaluated several options for implementing these upgrades and has focused on two: 1) renovating the existing pumping station, and 2) relocating the pumping station to a new site directly across San Pablo Creek from the existing station. At the conceptual design stage both options appear to be feasible. From an engineering and operational perspective the preferable option would be relocation. The relocation option appears to be more expensive, but it presents less risk during construction, it's easier to construct, provides a more reliable, efficient and maintainable pumping station, and makes possible future abandonment of two upstream pumping stations. The renovation option, while less expensive would be challenging from a design and constructibility point of view. The existing pump station needs to be kept in operation during construction, thus increasing the potential for construction problems and environment impacts. A small piece of adjacent land will also have to be acquired from the Country Club. 8/25/99 H:\Design\PP\5237 Pub Hear.aja.wpd Page 2 of 5 POSITION PAPER Board Meeting Date: September 2, 1999 Subject: CONDUCT A PUBLIC HEARING AND CONSIDER APPROVAL OF A NEGATIVE DECLARATION AND SELECT A PROJECT ALTERNATIVE FOR THE LOWER ORINDA PUMPING STATION IMPROVEMENT PROJECT, DP 5237 The Orinda Country Club favors the relocation option because it would lessen the impacts on the club's operations. The Orinda City Council and nearby residents favored the renovation option at the August, 3, 1999, City Council meeting because it would lessen the impacts on residents, trees, traffic, and visual aesthetics. A copy of a letter from the City of Orinda stating its position is included as Attachment 1. (A copy of the detailed report provided to the City Council has been provided separately to the Board.) In order to implement either the relocation or renovation option, the District will need a General Plan/Zoning variance, a creek set-back variance, a tree removal permit and will need to process the project through a formal design/architectural review process (relocation only). The City of Orinda has discretionary power for these variances/approvals. Since the renovation option is challenging from a design and constructibility perspective, should the Board select the renovation option, staff would prepare a detailed pre-design to ensure that all issues can be effectively resolved. The Board will be presented with a future position paper for the pre-design of the renovation option. From a strictly engineering and operational perspective, staff would have recommended the relocation option. However, the City Council and local residents have communicated to staff that the best interests of the Orinda community would be better served by the renovation option. Since both options are feasible, and the support of the City Council would facilitate necessary approvals, staff recommends the Board select the renovation option subject to favorable findings of the detailed pre-design for this option. A detailed Board presentation of the evaluation of the project alternatives will be presented during the Board Meeting. As Lead Agency, the District has conducted an Initial Study of the proposed project (relocation or renovation) to determine if the project may have a significant effect on the environment. Staff has concluded that the Initial Study adequately, accurately, and objectively evaluates the environmental impacts of the proposed project, and that a Negative Declaration is the appropriate document to address the environmental effects of the project. The Initial Study is included as part of the proposed Negative Declaration which has been distributed separately to the District Board of Directors. The proposed Negative Declaration finds that there is no substantial evidence before the District that the project may have a significant effect on the environment and that no 8/25/99 H:\Design\PP\5237 Pub Hear.aja.wpd Page 3 of 5 POSITION PAPER Board Meeting Date: September 2, 1999 Subject: CONDUCT A PUBLIC HEARING AND CONSIDER APPROVAL OF A NEGATIVE DECLARATION AND SELECT A PROJECT ALTERNATIVE FOR THE LOWER ORINDA PUMPING STATION IMPROVEMENT PROJECT, DP 5237 mitigation measures are needed other than those measures already incorporated into the project description. These measures are discussed in the proposed Negative Declaration. Staff also has concluded that Public Resources Code Section 21081.6 regarding a mitigation monitoring program is not applicable to this project since no changes resulting from the project or conditions of project approval are required to mitigate potentially significant effects. In compliance with the District's CEOA Guidelines, a legal notice was published in the Contra Costa Times, a newspaper of general circulation in the area affected by the proposed project. The legal notice announced the District's intent to adopt a Negative Declaration and the availability of the document for a 30-day public review period. Additionally, copies of the proposed Negative Declaration or the legal notice were mailed to affected public agencies and neighborhood residents. Seven comments on the proposed Negative Declaration were received. The comments and responses to comments were subsequently added to the Negative Declaration. Before the proposed project can be approved, the Board must consider any comments received during the 30-day public review process and the public hearing, then consider approval of the appropriate CEOA documentation (a Negative Declaration is recommended in this case). If the proposed Negative Declaration is approved, a Notice of Determination will be filed with the County Clerk. Following District Board approval, the Negative Declaration will be used by the City of Orinda and other responsible agencies in connection with the issuance of project-related permits. RECOMMENDATION: 1 . Conduct a public hearing on the Negative Declaration (a suggested agenda is attached) . 2. Approve the Negative Declaration for the Lower Orinda Pumping Station Improvement Project. 3. Select the renovation option subject to favorable findings of the detailed predesign. 8/25/99 H:\Design\PP\5237 Pub Hear.aja.wpd Page 4 of 5 08/25/99 WED 17:36 FAX 510 254 9158 CITI' OF ORINDA ~002 - ATTACHMENT 1 ~ ORINDA p.o. box 2000 . 26 orinda UJOl,J · orindo . californ 0 . 94563 :... August 20, 1999 Charles W. Batts, General Manager Central Contra Costa Sanitary District 5019 ImhotiPlace Martinez, CA 94553 BE: Lower Orinda Pump Station RenovationIRelocatioD Projeet Dcar Mr. Batts: Thank you for the opportunity for the Orinda City Council to comment on the Lower Orinda Pump Station renovation/relocation project. As the City Council voict:d at the meeting, they were quite satisfied and impressed with the quality of infonnatie,n you and your staff' provided on the issue. They felt you did a masterful job in responding to all questions and issues they bad raised from the initial meeting you had with thern on this project in January oftbis ycar. After bearing all public testimony and conferring, the Council determined that they preferred the renovation oCthe existing station rather than the relocation. I wllI be forwarding a copy of the minutes of the meeting to you for your information once they are adopted by the City Council. If you have any questions on this, please let me know. Sincerely, '~- ~ Melanie C. Hobden Community Development Director c:236.99 cc: Tad Pilecki, Centtal San Andrew Antkowiak, Central San Bill Lindsay, City.Manager Corey Simon, Senior Planner eell.ral'llr.rmalloft (925) 253-4200 (ph) (925) 2S4-0158 (fax) ActmiftlWoliOll (925) 253.4220 (ph) (925) 254-2068 (fax) (._UAity Developllleftt (92S) 253-4210 (ph) (92S) 254-9158 (toz) Parks & RecfCOIi.,. (92$) 254-244$ (ph) (925) 253-7716 (ftn:) Police Publk Wortls (92S) 2S~:20 (ph) (925) 253-4231 (Ph) (925) 254-01 !;8 (fox) (~S) 254-9158 (1m) Page 5 of 5 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 2, 1999 N~: 6.a. BIDS AND AWARDS Type of Action: AUTHORIZE AWARD Subject: AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO N. E. CARLSON CONSTRUCTION, INC., FOR THE SOUDS CONDITIONING BUILDING CONTROL ROOM MODIFICATIONS PROJECT (DP 6114A) Submitted By: James L. Belcher, Senior Engineer In/tJatlng oept./DIv. : Plant Operations/Maintenance ISSUE: On August 17, 1999, sealed bids were received and opened for construction of the Solids Conditioning Building Control Room Modifications Project, DP 6114A. The Board of Directors must authorize award of the contract or reject bids within 50 days of the bid opening. BACKGROUND: This project will modify the Solids Conditioning Building (SCB) Control Room (Attachment 1) so that all treatment plant processes can be operated entirely from the SCB Control Room. The Plant Operations Department (POD) Control Room will be unattended during non-day shift hours, consolidating operations staff in the treatment plant area. Over the past six years, the POD has reduced the number of Plant Operators on shift from six to four Plant Operators. This has been possible due to improved automation, the elimination of chlorine and increased training of Plant Operators to maximize the number of Plant Operators III on shift. The four-man shifts normally consist of one Shift Supervisor at the POD Control Room console, one Plant Operator III at the SCB Control Room console, and two roving Plant Operators II and III. It is now feasible to consolidate all operational activity during non-day shift hours into one control room. Consolidating operational activity into one control room during non-day shift hours will provide increased staff flexibility and effectiveness without sacrificing plant operations reliability. The Shift Supervisor and furnace operators will have more opportunities to interact, perform more thorough rounds in the treatment plant, and to assist other Plant Operators. The project was advertised on July 20 and August 4, 1999. Two bids, ranging from a low of $168,440 to a high of $183,300, were received and publicly opened on August 17, 1999. A summary of these bids is shown in Attachment 2. Plant Operations Department staff conducted a commercial and a technical evaluation of these bids and has determined that N. E. Carlson Construction, Inc., is the lowest, responsible bidder with a S :\Correspondence\POSP APR\ 1999-00\DP6114A. wpd Page 1 of 6 POSITION PAPER Board Meeting Date: September 2, 1 999 Subject: AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO N. E. CARLSON CONSTRUCTION, INC., FOR THE SOUDS CONDITIONING BUILDING CONTROL ROOM MODIFICATIONS PROJECT (DP 6114A) bid amount of $168,440, which is considerably higher than the engineer's estimate of $75,000. While staff is aware that the construction market is very robust, and the contractor can be very selective in the type of work it bids, the significant magnitude of how selective the contractors are was underestimated. This was evident prior to bid opening by the low contractor attendance at the pre-bid conference. Staff responded by contacting additional contractors in an effort to generate interest and bids. Most contractors were not interested, however, because of the relatively small size of the project and the complexity of the work. District staff conducted an evaluation to identify the discrepancy between the engineer's estimate and the bid price. This project includes significant construction constraints requiring the contractor to maintain the Solids Conditioning Building Control Room in a fully operational mode throughout the project. All the building systems (Le., HVAC, plumbing, and electrical) in and around the Control Room, are being modified or upgraded, thus increasing the complexity of the project. Staff underestimated the cost of these required constraints and the complexity of the construction coordination. Although the District only received two bids, the bids were within 9 percent of each other. This indicates that both contractors had a good understanding of the job from the staff- prepared plans and specifications. Since the bid climate is not expected to change in the near future and this is an important project to improve operations flexibility and effectiveness, staff recommends that this project be awarded to the lowest, responsible bidder. N. E. Carlson Construction, Inc., successfully completed the remodel of the Maintenance and Reliability Center last year and proposes using the same management team for this project. The allocation of funds required to complete this project, as shown in Attachment 3, is $264,000. This project is included in the Fiscal Year 1999-2000 Capital Improvement Budget (CIB) on pages TP-57 through TP-59. The described project work will raise the total project cost from the original estimate of $331,000 to an estimated $450,000. Staff has conducted a cash flow evaluation of the Sewer Construction Fund and concluded that adequate funds are available for this project. Staff has also concluded that this project is exempt from the California Environmental Quality Act (CEOA) under District CEOA Guidelines Section 18.2, since it involves minor alterations to existing sewage facilities with no increase in capacity. Approval of this S :\Correspondence\POSP APR\ 1999-00\DP6114A. wpd Page 2 of 6 POSITION PAPER Board Meeting Date: September 2, 1999 Subject: AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO N. E. CARLSON CONSTRUCTION, INC., FOR THE SOLIDS CONDITIONING BUILDING CONTROL ROOM MODIFICATIONS PROJECT (DP 6114A) project will establish the Board of Directors' independent finding that this project is exempt from CECA. RECOMMENDATION: Authorize award of a construction contract in the amount of $168,440 for the construction of the Solids Conditioning Building Control Room Modifications Project, DP 6114A, to N. E. Carlson Construction, Inc., the lowest, responsible bidder. S :\Correspondence\POSP APR\ 1999-QO\DP6114A. wpd Page 3 of 6 ex> o ij, o en en en E7 '~ ~ o , =6~ MAIN GATE I II II II II II II II il ;,I ;,I o c: 0> ~ o :!: to /' U Vl '1: /' o :!: to /' c: o Q. ~ Central Contra Costa Sanitary District f/ II II II II II II II II /;7 II II II II II II II ;I II ;I I I SOLIDS CONDITIONING BUILDING CONTROL ROOM MODIFICATION DISTRICT PROJECT 6114A PROJECT LOCATION ATTACHMENT 1 Page 4 of6 Central Contra Costa Sanitary District ATTACHMENT 2 SUMMARY OF BIDS Project: SOLIDS CONDITIONING BUILDING CONTROL ROOM MODIFICATIONS PROJECT DP 6114A Date: August 17, 1999 Location: Martinez, California Engr. Est. $75,000 .. . ,. . . . '. ;~.,:,,~ ".; " . .' ce- " .~;'.:j~'~:f~13IPl?ER (Name, Address) :.BID PRICE "'. ., . ;.:. : . ~ . 1 N.E. Carlson Construction, Inc. $168,440 150 Middlefield Court, Space F Brentwood, CA 94513-4027 2 E.A. Sparacino $183,300 2506 Via Verde Walnut Creek, CA 94598-3444 Bids Opened by:/s/ Ken Laverty Date: August 17, 1999 Sheet No. 1 of 1 Page 5 of 6 H:\SWG\CONTROL\SUMBIDRA.WPD ATTACHMENT 3 SOLIDS CONDITIONING BUILDING CONTROL ROOM MODIFICATIONS PROJECT DISTRICT PROJECT NO. 6114A POST-BID/PRECONSTRUCTION ESTIMATE Item Description 1 CONSTRUCTION Construction Contract Contingency at 15% Total Construction 2 CONSTRUCTION MANAGEMENT 3 TOTAL CONSTRUCTION PHASE COST 4 TOTAL PREBID EXPENDITURES 5 TOTAL ESTIMATED PROJECT COST 6 FUNDS AUTHORIZED TO DATE 7 ADDITIONAL ALLOCATION NEEDED TO COMPLETE PROJECT Percent of Estimated Construction Total Cost $168,440 $ 25,560 $194,000 100.00 $40,000 20.62 $234,000 120.62 $30,000 15.46 $264,000 136.08 $0 $264,000 Page 6 of 6 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 2, 1999 No.: 8.a. ENGINEERING Type of Action: AUTHORIZE AGREEMENT/AUTHORIZE AWARD Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH MARTINEZ REFINING COMPANY; AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO D' ARCY AND HARTY CONSTRUCTION, INC. FOR THE MARTINEZ TRANSMISSION SEWER PROJECT - PIPELINE REHABILITATION, DISTRICT PROJECT 5328 Submitted By: Joseph J. Pomroy, Assistant Engineer Initiating Dept./Div. : Engineering Department/Capital Projects W. Brennan ~ A. Farrell REVIEWED AND RECOMMENDED FOR BOARD ACTION: ~ -5IL B. Than vv1J) ISSUE: Board of Directors' authorization is required for agreements exceeding $50,000. Also, on August 18, 1999, sealed bids were received and opened for the construction of the Martinez Transmission Sewer Project - Pipeline Rehabilitation, District Project 5328. The Board of Directors must authorize award of the contract or reject bids within 50 days of the bid opening. BACKGROUND: The sewage conveyance system from the city of Martinez to the treatment plant consists of three pumping stations, three miles of pressure force mains, and three miles of reinforced concrete gravity sewer pipes (see Attachment 1 for project location). As part of an on-going corrosion evaluation of gravity sewers, the Martinez transmission gravity sewers were inspected to check their condition. The inspections concluded that these gravity sewers had been subjected to corrosive conditions and needed to be controlled to prolong the life of these pipelines. Even though some corrosion had taken place, the inspections also concluded that the majority of the pipeline is in sound structural condition. A three-phase project was planned to rehabilitate the Martinez transmission sewer system. These phases include Chemical Treatment, Pipeline Rehabilitation, and Force Main Replacement. In the Chemical Treatment phase of this project an alkaline slurry (magnesium hydroxide) was sprayed on the crown of the gravity sewer to act as a buffering agent to acid attack of the pipe wall. The first phase of this project is currently in construction. In the second phase, Pipeline Rehabilitation, portions of gravity pipes and appurtenant structures that were subjected to severe corrosion will be replaced. In the final phase of this project, the pressurized force mains will be evaluated and rehabilitated as needed. 8/26/99 L:\Position Papers\Pomroy\5328-BAward. wpd Page 1 of 1 3 --,---,~--,---_.._'----'--"'-----"--'---"--""'"--...,-..-------------.---- POSITION PAPER Board Meeting Date: September 2, 1999 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH MARTINEZ REFINING COMPANY; AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO 0' ARCY AND HARTY CONSTRUCTION, INC. FOR THE MARTINEZ TRANSMISSION SEWER PROJECT - PIPELINE REHABILITATION, DISTRICT PROJECT 5328 The Pipeline Rehabilitation phase of the project is separated into two contracts. The first contract is to replace facilities located within the Martinez Refining Company (MRC) Site. The second contract is to replace the gravity sewer system located in easements and public right of ways. Both contracts are described below. The District proposes to contract with MRC (formerly Shell Petroleum Company) for rehabilitation of a portion of the Martinez transmission pipeline, which is within the property boundaries of MRC ("Refinery Rehabilitation Project"). The agreement to be executed between the District and MRC is included as Attachment 4. The Refinery Rehabilitation Project encompasses the replacement of an estimated 100 feet of 36-inch gravity sewer, rehabilitation of the junction structure, installation of one new trunk manhole, and the necessary bypassing of the flows to complete the work. MRC has requested that its on-site contractor perform the work because of the unique environmental and construction conditions present on the MRC site. Specifically, the area through which the trenching and construction must occur is contaminated with certain petroleum- and industrial-related constituents. MRC has an on-site licensed contractor with crews available to undertake this sewer rehabilitation work that are familiar with the site conditions and are properly licensed and/or certificated to perform construction activities where contaminated and/or flammable materials may be encountered. It is a substantial advantage to have a contractor that is already on-site at the MRC facility perform the work in order to avoid the difficulties inherent in multiple contractors doing work on the same site. The MRC on-site contractor is trained and familiar with special on-site safety procedures. Staff recommends that the District enter into an agreement with the Martinez Refining Company to replace gravity sewer pipe within its property. The not to exceed value of such an agreement would be $160,000. District staff will be responsible for construction support and inspection tasks. The second part of the Pipeline Rehabilitation project will replace about 180 feet of 36-inch reinforced concrete pipe, and rehabilitate junction structures and manholes. The plans and specifications for both contracts of the Pipeline Rehabilitation for the Martinez Transmission Sewer project were prepared by District staff. The Engineer's prebid estimate for construction is $300,000. The project was advertised on August 3 and August 9, 1999. Two (2) bids ranging from $292,100 to $454,000 were received and publicly opened on August 18, 1999. A summary of these bids is shown in Attachment 2. The Capital Projects Division conducted a technical and commercial evaluation of these bids and has determined that D' Arcy and Harty Construction, Inc. is the lowest responsible bidder with a bid amount of $292,100. 8/26/99 l:\Position Papers\Pomroy\5328-BAward. wpd Page 2 of 1 3 POSITION PAPER Board Meeting Date: September 2, 1999 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH MARTINEZ REFINING COMPANY; AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO 0' ARCY AND HARTY CONSTRUCTION, INC. FOR THE MARTINEZ TRANSMISSION SEWER PROJECT - PIPELINE REHABILITATION, DISTRICT PROJECT 5328 District staff will administer the construction management function for the construction contract. The construction inspection services will be provided by a consultant inspector, since District staff is not presently available. A budget of $25,000 has been allocated for construction inspection services by a firm which has not yet been selected. Staff has selected V &A Consulting Engineers, Inc. (V &A) to provide coating applications inspection for this project because V&A had initially evaluated the condition of this transmission sewer system. Additionally, inspectors from V&A have been certified by National Association of Corrosion Engineers. Staff has negotiated an agreement with V&A Consulting Engineers, Inc. for an amount not to exceed $10,000. The allocation of funds required to complete both parts of the Pipeline Rehabilitation phase of the project, as shown in Attachment 3, is $762,000. The funds will be allocated from the Martinez Transmission Sewer Rehabilitation Project (pages CS-24 through CS-26 in the 1999-00 Capital Improvement Budget). Staff has conducted a cash flow evaluation of the Sewer Construction Fund and concluded that adequate funds are available for this project. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines Sections 18.2 and 18.3, since this involves repair and replacement of existing sewage facilities with negligible or no increase in capacity. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. RECOMMENDATION: 1 . Authorize the General Manager to execute an agreement with the Martinez Refining Company not to exceed $160,000 to include replacement of 100 feet of 36-inch reinforced concrete pipe and rehabilitation of one junction structure for the Martinez Transmission Sewer Project - Pipeline Rehabilitation, District Project 5328. 2. Authorize award of a construction contract to 0' Arcy and Harty Construction, Inc., the lowest responsible bidder, in the amount of $292,100 for the construction of the Martinez Transmission Sewer Project - Pipeline Rehabilitation, District Project 5328. 8/26/99 L:\Position Papers\Pomroy\5328-BAward.wpd Page 3 of 1 3 o . 1 . - Chemical Treatment - Phase I BOYD RO _ Pipeline Rehabilitation - Phase II .... Existing Force Mains Central Contra Costa Sanitary District MARTINEZ TRANSMISSION SEWER REHABILITATION DISTRICT PROJECT 5328 PROJECT LOCATION ATTACHMENT 1 L:\Position Papers\MAPS\5328-B. wpd Page 4 of 1 3 ATTACHMENT 2 Central Contra Costa Sanitary District SUMMARY OF BIDS Project:Martinez Transmission Sewer Project-Pipeline Rehabilitation Date: August 18. 1999 Location: Martinez Engr. Est. $ 300.000 1 D' Arcy and Harty Construction, Inc. 2 McGuire and Hester $292,100 $454,000 Bids Opened by: Is/Joyce Murphy Date: 8/18/99 L: \Desig n \Pomroy\5 3 28\PipeRehab\5 3 28 B-Bid Sum. wpd 2/6/97 Page 5 of 13 ATTACHMENT 3 MARTINEZ TRANSMISSION SEWER PROJECT - PIPELINE REHABILITATION DISTRICT PROJECT NO. 5328 POST -BID/PRECONSTRUCTION ESTIMATE No. ITEM DESCRIPTION 1. CONSTRUCTION a. Construction Contract b. Contingency at 20 percent TOTAL CONSTRUCTION CONSTRUCTION MANAGEMENT a. District Forces - Construction Management - Project Engineering - Collection System Operations Department - Engineering Support/Survey - Materials and Supplies/Permit Inspection Fees SUBTOTAL b. Consultants - Construction Inspection Services - Corrosion and Coatings Inspection Services - Material Testings - Legal SUBTOTAL TOTAL CONSTRUCTION MANAGEMENT TOTAL CONSTRUCTION PHASE COST 2. PIPELINE RAHABILlTATION IN MARTINEZ REFINING COMPANY SITE a. Reimbursed Agreement with Martinez Refining Company b. Contingency c. Construction Services Support and Inspection SUBTOTAL 3. TOTAL PREBID EXPENDITURES a. Planning b. Chemical Treatment (Design, Construction and Construction management) c. Design (Pipeline Rehabilitation) SUBTOTAL 4. TOTAL ESTIMATED PROJECT COST 5. FUNDS AUTHORIZED TO DATE 6. ADDITIONAL ALLOCATION NEEDED TO COMPLETE PROJECT ESTIMATE COST ($) 292,100 58,900 351,000 32,000 17,000 5,000 10,000 5,000 69,000 25,000 10,000 5,000 10,000 50,000 119,000 470,000 160,000 32,000 48,000 240,000 60,000 220,000 72,000 352,000 1,062,000 300,000 762,000 PERCENT OF ESTIMATED CONSTRUCTION COST 100.0 19.7 14.2 33.9 133.9 Page 6 of 13 ATTACHMENT 4 AGREEMENT BETWEEN MARTINEZ REFINING COMPANY AND CENTRAL CONTRA COSTA SANITARY DISTRICT REGARDING PIPELINE REHABILITATIONS ON MARTINEZ REFINING COMPANY SITE This Agreement dated , 1999, between the Martinez Refining Company and Central Contra Costa Sanitary District regarding sewer line rehabilitation and replacement on the Martinez Refining Company site shall become effective when the last party executes it. 1 . Parties: Martinez Refining Company, herein called "MRC" and the Central Contra Costa Sanitary District, herein called "DISTRICT". 2. Purpose and Scope: The DISTRICT intends to rehabilitate certain portions of the Martinez Transmission Pipeline during the late summer and fall of 1999 (Martinez Transmission Sewer Project, District Project No. 5328). The Martinez Transmission Sewer Project includes rehabilitation of a number of segments of the pipeline within the public right-of-way and outside of the refinery site owned by MRC. The Martinez Transmission Sewer Project is being publicly bid and will be awarded according to the provisions of the California Public Contracts Code. The DISTRICT also proposes to contract for rehabilitation of a portion of the Martinez Transmission Pipeline which is within the property boundaries of MRC ("Refinery Rehabilitation Project"). The Refinery Rehabilitation Project encompasses the placement of an estimated 100-foot section of 36-inch gravity sewer, rehabilitation of the junction structure, installation of one new trunk manhole, and the necessary bypassing of the flows to complete the work, as set forth in the project drawings, volume 3 of 3, for construction of District Project No. X5328 (Martinez Transmission Sewer Project - Pipeline Rehabilitation on Martinez Refining Company Site). The existing line to be replaced (a portion of the M5 sewer main) is the sole existing sewer main carrying a substantial portion of the flow from the entire city of Martinez. The sewage flow through M5 must be contained without interruption during the course of District Project No. X5328. The technical specifications for the construction of the new sewer and appurtenant structures, as well as for the connection and use of a temporary line during construction, are found in Part VII (Technical Specifications) of the project manual for the Martinez Transmission Sewer Project (Pipeline Rehabilitation), District Project No. 5328. L:\Design\Pomroy\5328\MRCAgree. wpd District Counsel: DoC#: 222880v01 Page 7 of 13 Due to the unique environmental and construction conditions present on the MRC site, it is hereby agreed that there is substantial advantage to each party to allow a contractor familiar with the MRC site, environmental conditions, and MRC safety procedures to undertake the work. More specifically, the area through which the trenching and construction must occur may be impacted with certain petroleum- and industrial-related constituents, requiring the excavated material to be handled appropriately by trained workers in a manner consistent with the safe and lawful handling of such materials. MRC has available an on-site licensed contractor with crews available to undertake this sewer rehabilitation work that are familiar with the site conditions and safety procedures, and that are properly licensed and/or certificated to perform construction activities under the conditions which may be encountered. The parties further agree that there is a substantial advantage to having a contractor that is already on site at the MRC facility perform the work in order to avoid the difficulties inherent in multiple contractors doing work on the same site simultaneously with different construction managers and schedules. This Agreement outlines the responsibilities and requirements of MRC and the DISTRICT to accomplish design and construction of the Refinery Rehabilitation Project. This Agreement only addresses construction activities related to the Refinery Rehabilitation Project and does not address construction or remediation activities not directly related to this Project. 3. Division of Responsibilities Regarding Construction a. The DISTRICT shall perform the design, shop drawing review, inspection, and other similar design and inspection engineering services for the Refinery Rehabilitation Project work. The DISTRICT shall provide material testing relating to sewer construction and staking and surveying, to the extent any staking and surveying is required. (Additionally, the DISTRICT shall be responsible for compliance with the California Environmental Quality Act (CEQA) and other laws specifically related to public works.) b. MRC shall perform all other tasks related to contracting for the construction of the Refinery Rehabilitation Project, including contract and project administration, construction management (except as specifically noted herein), safety, and permit acquisition. MRC shall have the responsibility to select the contractor and has selected Underground Construction Co., Inc. (hereinafter "MRC Contractor"). c. The Refinery Rehabilitation Project shall be a private works contract pursuant to the terms of this Agreement, inasmuch as MRC (a private industrial company) is contracting with a licensed private contractor to perform work on a sewer facility on private property owned by MRC. As a private works contract, MRC may contract with its contractor in such a manner as it deems appropriate, to the extent its contract is consistent with the terms set forth herein. Notwithstanding the private works nature of this contract, the DISTRICT requires and MRC agrees to ensure that the MRC Contractor pay Prevailing Wages in a manner consistent with California Labor Code Sections 1700, et seq. As a private works contract being L:\Design\Pomroy\5328\MRCAgree. wpd District Counsel: DoC#: 222880v01 Page 8 of 13 performed on private property, none of the provisions concerning the filing of Stop Notices will apply; accordingly, MRC shall be responsible for any payment disputes which may arise pursuant to the mechanic's liens laws or other similar laws arising out of the construction contract which is subject to this Agreement. d. MRC shall perform all tasks and have all responsibility with regard to environmental management of the Project, excepting CEQA compliance, which is the responsibility of the DISTRICT. e. MRC shall, pursuant to its construction management responsibilities, provide DISTRICT with notice and ample opportunity to approve the design and proposed implementation plan for the temporary line which will be used to divert flow from the upstream portion of the Project construction area to a location downstream. Staff members for the DISTRICT shall be afforded the opportunity to be present when the connection and diversion occurs and at any such time during the use of the temporary diversion facilities as may be required to ensure uninterrupted sewer service to the temporary facilities. f. MRC shall be responsible for the negotiation, preparation, and issuance of change orders; provided, however, that the DISTRICT shall have the right to review and approve all change orders other than those for which MRC takes full payment responsibility pursuant to the cost sharing provisions set forth below. The DISTRICT's approval shall not be unreasonably withheld nor delayed. g. The contract documents between MRC and the MRC Contractor for this Refinery Rehabilitation Project shall include provisions providing for the MRC Contractor to (1) name the DISTRICT and its directors, officers, and employees as additional insured on any required general liability and automobile insurance policies, (2) defend, indemnify, and hold harmless the DISTRICT and its directors, officers, and employees from liabilities in the same manner as for MRC, (3) pay prevailing wages, and (4) otherwise provide for the protections provided to the DISTRICT under this Agreement. 4. Cost Sharing: a. The DISTRICT shall be responsible for and pay the costs of design, construction, support services, and construction inspection of the Refinery Rehabilitation Project as limited herein. b. The DISTRICT shall pay the lump sum construction contract price negotiated by MRC with MRC's contractor. The lump sum amount is $160,000.00 for construction of the entirety of the work as set forth in the Contract Document for Construction of District Project, District Project No. X5328, and constructed pursuant to the technical specifications found in Volume 2 of 3 of the Project Manual for the Martinez Transmission Sewer Project, Pipeline Rehabilitation, District Project No. 5328. This lump sum price shall include all work contemplated by the drawings and specifications, as well as all costs associated with personnel, L:\Design\Pomroy\5328\MRCAgree.wpd District Counsel: DoC#: 222880v01 Page 9 of 13 equipment, materials, supervision, on-site overhead, home office overhead, taxes, disposal fees, and other such costs required to complete the work, excepting any additional costs approved pursuant to the change order procedures. This lump sum cost will also compensate MRC Contractor for costs associated with bonding and insurance, as well as any costs incurred by MRC in providing a one-year warranty on the work. c. The lump sum contract price set forth above shall include the costs associated with local disposal of all spoils contemplated on the job at a local disposal site for non-contaminated soils. All costs in addition to those set forth in lump sum bid relating to removal, transportation, and disposal of contaminated soil or spoils, whether categorized as hazardous or unhazardous, will be borne by MRC. d. The DISTRICT shall not be responsible for any construction or construction management costs over the lump sum amount, unless DISTRICT approves change orders in excess of that amount pursuant to the provisions of Section 5 below. 5. Payment: The DISTRICT shall pay to MRC the amount set forth as the lump sum contract amount, plus any change order amounts which are the responsibility of the DISTRICT, by the later of thirty (30) days after District inspectors have accepted the work, or thirty (30) days after MRC has provided the DISTRICT with adequate back-up documentation with regard to change orders to allow the DISTRICT's review and approval of same. In the discretion of MRC, MRC can bill the DISTRICT for the lump sum amount at the time of final inspection and thereafter process final change order amounts. In such an event, the DISTRICT shall make the initial payment for the lump sum and thereafter pay for all approved change order amounts within thirty (30) days of submission by MRC of the change orders with reasonable accompanying documentation. Payment may be withheld for any amounts which remain in dispute between the DISTRICT and MRC at the end of any 30-day period until the dispute is resolved. Payment shall not be unreasonably withheld. 6. Schedule: The Refinery Rehabilitation Project shall be constructed between September 15 and October 31, 1999. Time is of the essence, in that the Project must be completed prior to the pending wet weather season and in conjunction with the completion of construction of the remaining portions of the Martinez Transmission Sewer Project. 7. Final Acceptance of Construction Contract a. MRC shall authorize the final acceptance of the contract work for the Refinery Rehabilitation Project. However, the DISTRICT shall have the right to make inspections of the work as would be ordinary and necessary and to accept the facilities prior to the final acceptance of the overall project by MRC. MRC shall not authorize final acceptance of the Refinery Rehabilitation Project in the event the L:\Desig n\Pomroy\5328\MRCAg ree. wpd District Counsel: DoC#: 222880v01 Page 10 of 13 DISTRICT is unwilling to accept the constructed facilities as complete and in accordance with the project drawings, technical specifications, and the DISTRICT's standard procedures. The DISTRICT will not unreasonably withhold nor delay its approval of said work. b. MRC warrants all material, products, and workmanship furnished and all work performed under this agreement against defects for a period of one (1) year after final acceptance regardless of whether the same were furnished or performed by MRC Contractor or by any of its subcontractors or suppliers of any tier. MRC shall make, at its own expense, all repairs and/or replacements necessitated by defects in the materials, and/or products and in the workmanship provided by MRC Contractor or any of its subcontractors that become evident within the warranty period. 8. Maintenance Responsibility: At the time that MRC accepts the contract work for the Project as complete, and subject to the one-year warranty of the contractor, the DISTRICT is deemed to thereby accept complete maintenance and repair responsibilities for the portion of the rehabilitated sewer. 9. Cooperation: MRC and the DISTRICT agree to work cooperatively toward the successful completion of the Project. 10. Indemnity: a. The DISTRICT shall defend, indemnify, save, and hold harmless MRC, its directors, officers, agents, and employees from any and all claims, demands, suits, costs, liability, and expenses, including reasonable attorneys' fees, for any damages, injury, sickness or death, including liability for inverse condemnation, nuisance or trespass (collectively "liability") to the extent arising out of the design or shop drawing review of the Refinery Rehabilitation Project and all other related engineering services provided by the DISTRICT during construction of said work, except for liability arising through the sole or active negligence or willful misconduct of MRC, its directors, officers, employees, contractors, or agents. b. MRC shall defend, indemnify, save, and hold harmless the DISTRICT, its directors, officers, agents, and employees from any and all claims, demands, suits, costs, liability, and expenses, including reasonable attorneys' fees, for any damages, injury, sickness or death, including liability for inverse condemnation, nuisance or trespass (collectively "liability") to the extent arising out of any of MRC's obligations under this Agreement, including, but not limited to, the contracting for the Refinery Rehabilitation Project, construction management, project administration, permit acquisition, safety, compliance with environmental laws and regulations (excepting the California Environmental Quality Act), and other laws related to construction on or about a refinery facility, except for liability L:\Design\Pomroy\5328\MRCAgree .wpd District Counsel: DoC#: 222880v01 Page 11 of 13 arising through the sole or active negligence or willful misconduct of the DISTRICT, its directors, officers, employees, contractors, or agents. c. Nothing in this Agreement is intended to affect the legal liability of either party by imposing any standard of care different from the standard of care imposed by law. 11 . Force Majeure and Excuse from Performance The parties shall be excused from performing their respective obligations hereunder in the event they are prevented from so performing by reason of floods, earthquakes, other "acts of God", war, civil insurrection, riots, acts of any government (including judicial action), labor unrest, and other similar catastrophic events which are beyond the control of and not the fault of the party claiming excuse from performance hereunder. Notwithstanding performance being potentially excused as set forth herein, the DISTRICT may take over performance of MRC and/or the MRC Contractor if an enumerated force majeure event causes performance of the MRC Contractor to be so disrupted as to present the potential for interruption of the sewage flow in the M5 line or other imminent environmental, health, or safety danger. 12. Modification of Agreement: This Agreement shall be subject to modification only by a subsequent written agreement executed by both of the parties. 13. Agreement Expiration: Except for the provisions of Sections 7, 8 and 10, which provisions shall survive the expiration of this Agreement, this Agreement shall expire upon the payment of all sums described in Section 5 above. 14. Entire Agreement: This Agreement contains the entire understanding of the parties concerning its subject matter. Any representation or promise of the parties relating to the subject matter shall not be enforceable unless it is contained in this Agreement or in a subsequent written agreement executed by the parties. 15. Successors: This Agreement shall inure to the benefit of and be binding upon the successors and assigns of both parties. 16. Notices: Any and all notices or documents to be delivered between the parties shall be deemed delivered: (1) upon hand delivery to the address below; (2) upon being sent and received via certified mail to the address below as evidenced by certified mail receipt; (3) upon begin sent via facsimile to the telephone number below as evidenced by facsimile receipt; or (4) five (5) days after being sent via first class mail. Facsimile transmission shall be promptly followed by first class mail. The addresses and facsimile numbers are as follows: L:\Design\Pomroy\5328\MRCAgree. wpd District Counsel: DoC#: 222880v01 Page 12 of 13 TO MRC: Mr. Daniel E. Glaze Senior Environmental Engineer Martinez Refining Company P. O. Box 711 Martinez, CA 94553-0071 TO THE DISTRICT: Mr. Ba T. Than Associate Engineer Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 1 7. Interpretation: Both parties have had ample opportunity, with the benefit of counsel, to comment upon the contents of this Agreement; therefore the rule that ambiguities in contracts are to be construed against the drafter, and any related rules, shall not apply. 18. Termination: Should either MRC or the DISTRICT materially breach this Agreement, they may terminate this Agreement by providing the other with at least fifteen (15) days' advance written notice of termination and of the claimed material breach. This Agreement shall then terminate according to such notice unless the breaching party cures such claimed material breach within the period indicated in the notice, which period shall be at least fifteen (1 5) days. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate by officials which the respective parties covenant have full authority to execute this Agreement. CENTRAL CONTRA COSTA SANITARY DISTRICT MRC Date: Date: By: By: General Manager Joyce E. Murphy Secretary of the District Date: L:\Design\Pomroy\5328\MRCAgree.wpd District Counsel: DoC#: 222880v01 Page 13 of 13 Central Contra Costa SClllitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 2, 1999 No.: 12.a. BUDGET AND FINANCE Type of Action: APPROVE INVESTMENT POLICY Subject: REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY Submitted By: Debbie Ratcliff, Controller Initiating Dept./Div. : Administrative/Finance & Accounting D. Ratcliff REVIEWED AND RECOM OED FOR BOARD ACTION: ~ ISSUE: The District's investment policy must be reviewed and approved annually by the Board of Directors in accordance with District Investment Policy and California Government Code Section 53646. BACKGROUND: In 1984, the California legislature amended Government Code Section 53646 to require that the treasurer or chief fiscal officer annually render to the legislative body of the local agency a statement of investment policy, and render a monthly report to the chief executive officer and legislative body of the local agency showing the type of investment, institution, date of maturity, amount of deposit, current market value for all securities with a maturity of more than 12 months, rate of interest, and such date as may be required by the local agency. Section 53646 remained in effect only until January 1, 1991, and as of that date was repealed. The California Legislature added a new Government Code Section 53646 via Senate Bill 564 as of January 1, 1996. The annual rendering of a statement of investment policy to the governing Board for review and approval as well as a monthly investment~has been continued through the 1995 enactment. Those provisions were incorporate into our investment policy at that time. ,efOr+ District counsel and staff reviewed the 1998 amendments to Government Code Section 53646, and found that none were applicable to the District. Therefore, there are no recommended changes to the investment policy this year. RECOMMENDATION: Review, suggest any changes if appropriate, and approve the District's investment policy. S:IADMINIPOSPAPERIINVESTMENT .POL.wpd Page 1 of 4 POSITION PAPER Board Meeting Date: September 2, 1999 Subject: REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY The investment policy of the Central Contra Costa Sanitary District is embodied in the following eleven sections: I. Statement of Objectives The temporary investment portfolio of the District will be managed to ensure that normal cash needs, as well as scheduled extraordinary cash needs can be met. Therefore, adequate liquidity will be the first priority. Second priority will be the safety of the portfolio ensuring that the investments could be readily converted to cash if needed without causing a material change in the value of the portfolio. Lastly, the portfolio will be invested to attain a market average rate of return, after meeting the first two previously stated objectives. II. Permissible Investments Within the constraints prescribed by the Government Code of the State of California for permissible investments, the District's investment portfolio will only be invested in the following instruments: . United States Treasury Bills and Notes, and obligations of government agencies for which the full faith and credit of the United States are pledged. . Bankers Acceptances, drawn on and accepted by a commercial bank, which are eligible for purchase by the Federal Reserve System. . Collateralized Certificates of Deposit issued by a Federal or State chartered bank or a Federal or State chartered savings and loan association. . Commercial Paper of prime quality limited to corporations with assets over $500,000,000. . Local Agency Investment Fund of the State of California. S:IAOMINIPOSPAPERIINVESTM ENT .POL.wpd Page 2 of 4 POSITION PAPER Board Meeting Date: September 2, 1 999 Subject: REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY III. Banks and Dealers The District will use the services of the Treasurer's Office of the County of Contra Costa which will transact the District's investment decisions in compliance with the requirements described in this investment policy. The County Treasurer's Office will execute the District's investments through such brokers, dealers and financial institutions as are approved by the County Treasurer, and through the State Treasurer's Office for investment in the Local Agency Investment Fund. IV. Maturities The maximum maturity for investments of the District is one year. Prior approval of the Board of Directors must be obtained to acquire investments with maturities beyond one year. However, investments in Treasury Notes and the Local Agency Investment Fund would not be subject to the one year maximum maturity. V. Diversification To minimize the risk of loss through default, the total amount invested in a single issuer will not be greater than 15 percent of the District's investment portfolio value, except that the 1 5 percent limitation will not apply to United States Treasury Bills and Notes and investment in the Local Agency Investment Fund. VI. Risk Credit and market risks will be minimized through adherence to the list of permissible investments, a limit on maximum maturities, and the limitation on the total investment in a single issuer. VII. Delegation and Authority The District Controller will be responsible for investment transactions which should be made in accordance with this investment policy and within the internal controls described in Section IX. S:IAOMINIPOSPAPERIINVESTMENT .POl.wpd Page 3 of 4 POSITION PAPER Board Meeting Date: September 2, 1999 Subject: REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY VIII. Prudence Prudent judgement must be exercised by the District Controller responsible for investment transactions undertaken in accordance with this investment policy. IX. Controls The District Controller will establish subsidiary accounting records of each investment which will enable the determination of income earned monthly and through maturity, and the balancing of the principal amounts to a control account in the general ledger. Internal control procedures will require the countersignature of the Director of Administration for all transactions which are initiated by the Controller. The dollar limit of the Director of Administration will be $5 million. Investment transactions which exceed $5 million will require the additional approval of the General Manager. Such internal controls are to be reviewed by the District's independent auditors annually. X. Reporting The District Controller will annually render a statement of investment policy to the Board of Directors. The Controller will submit a monthly report to the District's General Manager, Board of Directors and internal auditor showing the type of investment, issuer, date of maturity, par (or face), dollar amount invested, current market value of all securities, and the source of this same valuation, and a statement of compliance of the portfolio with the investment policy. XI. Performance Evaluation A performance evaluation will be completed by the District's independent auditors every four years, commencing with the 1984-1985 fiscal year, to determine whether the investment objective of achieving a market-average rate of return is being realized. In determining the market-average rate of return, the average return of three month U.S. Treasury Bills will be used. S:IADMINIPOSPAPERIINVESTMENT .POL.wpd Page 4 of 4