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HomeMy WebLinkAboutAGENDA BACKUP 02-07-91 . Central Contra Costa Sanitary lJistrict BOARD OF DIRECTORS PAGE 1 OF POSITION PAPER BOARDMEEP~t~ary 7,1991 ~'E't![ARE ALL BIDS NON-RESPONSIVE, APPROVE THE USE OF NEGOTIATION, AND AUTHORIZE AWARD OF PURCHASE ORDER TO WESCO FOR FURNISHING OF TWO INDOOR MOTOR CONTROL CENTERS NO. 3. BIDS AND AWARDS a. D~el,ruary 1, 1 991 TYPE OF ACTION DECLARE NON-RESPON- SIVE; APPROVE NEGO- TIA TION; AUTHORIZE SUBMITTED BY Ken F. Laverty, C.P.M. INITIATING DEPT/DIV Administrative! ISSUE: The District received bids on January 24, 1991, for furnishing of two indoor motor control centers (MCC). The Board must authorize award of the purchase order and!or reject all bids within 45 days. BACKGROUND: The construction work for the complete Headworks Project is expected to begin about June 1991. In order for the Headworks Project to proceed as scheduled, motor control centers 14D1 and 14D2 must be successfully started up and be fully operational by November 15, 1991. Since the MCC is a long leadtime item, approximately 24 weeks after an order is placed, it is necessary for the District to pre-purchase the MCC to ensure delivery in July 1991. The Headworks Project is included in the 1990-91 Capital Improvement Budget, pages TP-12 and TP-13. The bid request was publicly advertised on January 3, 1991, and January 8, 1991, and three bids were publicly opened on January 24, 1991. The following bid prices were received: WESCO at $51,649.39; Allen-Bradley at $54,498; and Access Electric Supply at $55,155. A technical and commercial evaluation was conducted by Engineering and Purchasing which shows that the lowest bid price was submitted by WESCO. However, all bids contained material variances which were caused by the bidders including their terms and conditions, thereby causing conflict with the District's. Therefore, the Board should declare that all bids are non- responsive to the District's bid request. District Counsel and the staff discussed this non-responsive situation and concluded that if the Board approved of the negotiations of terms and conditions with WESCO and holding its low bid price at $51,649.39, that the outcome would be in the District's best interest. This recommended procedure is in compliance with Public Contracts Code (PCC) Section 20805, which states that "if no bids are received the district board may have the project done without further complying with this article." It is staff and Counsel's conclusion that when no "responsive" bids are received, it is the functional equivalent of receiving no bids, as set forth in PCC, Section 20805, and, therefore, negotiation with the low bidder is permissible. Furthermore, the reissuing of the District's bid request would be unavailing as affecting the final result, since we believe that basically the same material variances would be taken by all three bidders. 0fk,0 /7~ INITIATING DEPT/DIV. ~~ REVIEWED AND RECOMMENDED FOR OARD ACTION '302A-9/RFL PM DW KLA ~l'..7XRE All BIDS NON-RESPONSIVE, APPROVE THE USE F NEGOTIATION, AND AUTHORIZE AWARD OF PURCHASE RDER TO WESCO FOR FURNISHING OF TWO INDOOR MOTOR ONTROl CENTERS POSITION PAPER PAGE 2 01- DATE February 1, 1991 I Ithough the original bid documents submitted by WESCO contained material variances, the I istrict and WESCO have since concluded satisfactory negotiations of the terms and conditions. hese satisfactory negotiations with WESCO have resulted in bringing WESCO's quoted terms nd conditions in general compliance with the District's general conditions. Therefore, staff recommends that the Board authorize the award of a purchase order to WESCO in the amount f $51,649.39. ECOMMENDATION: Declare all bids non-responsive to the bid request, approve the use of egotiations with WESCO, the low bidder, and authorize award of a purchase order to WESCO in the amount of $51,649.39 (original bid price) for furnishing the indoor motor control centers. 110?FJ g'B[) . Central Contra Costa Sanitary LJistrict BOARD OF DIRECTORS PAGE 1 OF2 POSITION PAPER BOARD MEETING OF NO. February 7, 1991 4. CONSENT CALENDAR a. SUBJECT DATE ADVISE THE BOARD OF THE CLOSE OUT OF THE PHASE 1 B SAN RAMON VALLEY INTERCEPTOR PROJECT (D.P. 24224) January 25, 1 991 TYPE OF ACTION INFORMATIONAL SUBMITTED BY INITIATING DEPT 'DIV Henry B. Thom, Senior Engineer Engineering Department/Construction Division ISSUE: All work has been completed on the Phase 1 B San Ramon Valley Interceptor Project (D.P. 24224) and this project can now be closed out. BACKGROUND: The Phase 1 B project was the second phase of the new San Ramon Valley Interceptor Project. The Phase 1 B project covers the 1.5 mile section from Sycamore Valley Road south to St. James Court in Danville as shown on Attachment A. The major elements of the Phase 1 B project consisted of the installation of 1.5 miles of 42-inch diameter concrete pipeline, double barrel siphon (33- and 24-inch diameter) under the San Ramon Creek, and 12 manhole structures. As part of the project, a paved 10-foot wide trail was constructed along the pipeline from Sycamore Valley Road to San Ramon Creek. Additional information on the Phase 1 B project is given on page CS-14 of the 1990-1991 Capital Improvement Budget. The contractor, Mountain Cascade, Inc., of San Ramon commenced work on July 27, 1987. All contract work was essentially completed ahead of the contract completion date of June 26, 1988. The project was accepted by the Board of Directors on July 7, 1988. The project close out was delayed due to a property damage claim which was later resolved. Mountain Cascade's original construction contract was for $1,895,900. There were 14 change orders issued on the project for additional work associated with unknown utilities, repairs of damaged sewers, excess excavation, and miscellaneous connections to existing sewers. The total amount for all change orders was $14,778.79. The total contract amount paid to Mountain Cascade was $1,910,678.79. The total budget for the project was $2,312,900. The total completed project cost is $2,111,530 which is approximately 9 percent less than the budget. Staff is closing out the project which will result in $201,378 being returned to the Collection System Program. RECOMMENDATION: This item is presented to the Board of Directors for information. No action is necessary. REVIEWED AND RECOMMENDED FOR BOARD ACTION 110?A 98', JSM RAB /1S Orinda _ Alamo ~ 111111111 - Project Location(s) Central Contra Costa Sanitary District ~ SAN RAMON VALLEY INTERCEPTOR PROJECT ATTACHMENT D.P. 24224 A 2523-9/88 . Central Contra Costa Sanitary District BOARD OF DIRECTORS PAGE 1 OF 4 POSITION PAPER BOARD MEETING OF February 7, 1991 NO. 5. ENGINEERING a. SUBJECT DATE APPROVAL TO OVEREXPEND THE FY 1990-91 ENGINEER- ING DEPARTMENT EDUCATION AND TRAINING BUDGET BY $11,640 APPROVE ADDITIONAL FUNDS SUBMITTED BY INITIATING DEPT/DIV ROBERT A. BAKER ENGINEERING DEPARTMENT ISSUE: The Engineering Department requests approval for increases to the previously approved Fiscal Year 1990-91 Technical Training, Conferences, and Meetings (Account 090) Budget. BACKGROUND: Recent changes in the engineering employment marketplace have created a need to reevaluate the objective and scope of training in the Engineering Department. Despite the slowdown in the California economy, environmental activity in the state has remained at a high level. The high activity has created a large demand for environmental professionals and a corresponding serious shortage has developed. This has caused salaries to increase as well as a dramatic increase in employment opportunities. Consequently, the turnover rate in the Engineering Department has risen, it has become difficult to recruit Environmental Engineers from graduating college classes, and it has become nearly impossible to recruit experienced engineers. As a result of these employment market pressures, the overall level of education and experience of newly hired technical staff in the Engineering Department is dropping. This trend is expected to continue in the foreseeable future. To address this problem, a new approach to our education, training, and recruitment program is recommended. The Fiscal Year 1990-91 Engineering Department training program has a budget of $36,241. The primary goal of the program is to provide advanced training to enhance employee performance. The program has purposely been kept at a modest level (about $500/ employee /year) since in the past the Department has depended on recruitment of experienced engineers with masters degrees to provide a core level of staff expertise. This approach appears to be no longer viable. In the future, it is recommended that we implement an enhanced training program to accomplish the following goals: 1. Expand the present training program by providing more basic technical skills training (short term emphasis on computer skills, design skills, hazardous waste remediation techniques, and claims management skills). REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A-9/85 RAB INITIAmDIV. SUBJECT POSITION PAPER APPROVAL OF $11,640 IN ADDITIONAL EXPENDITURES FOR TRAINING IN THE ENGINEERING DEPARTMENT PAGE 2 DATE OF 4. Januarv 29. 1991 2. Begin an in-house program to enable employees to prepare for future advancement at the District, with a short term emphasis on management skills training for senior professionals. 3. Begin an expanded seminar attendance program to enhance job professionalism for less experienced technical staff. 4. Provide enhanced job satisfaction and knowledge for senior professionals in the Department through increased participation in conferences. To begin the proposed program, the Engineering Department recommends that additional training activities be added to the previously approved Training and Conference Budget for fiscal year 1990-91. Specific information on the requested activities is contained in the attachment to the Position Paper. RECOMMENDATION: Authorize the Engineering Department to overexpend the FY 1990-91 Technical Training, Conferences, and Meetings Account by $11,640. 130?8 9-8!i ATTACHMENT DESCR:IPT:ION SITE ATTENDEE AMOUNT Management Action Plan N.California Senior $1900 (MAP) Management Engineer Training (advanced level course) CASA Conference Lake Tahoe Division $ 600 Manager Control of Hazardous Anaheim Associate $ 800 Materials Seminar Engineer Fundamentals of San Francisco Senior $1000 Accounting for Non- Engineer Finance Professionals PLANN:ING DIVISION TOTAL $4300 DESCRIPTION SITE ATTENDEE AMOUNT CASA Conference Palm Springs Division $ 800 Manager Troubleshooting and Sacramento Technician $ 120 Maintaining Personal Computers Supervisor Health and California Senior $ 400 Safety Training for Engineer Hazardous Waste EPA Air Emissions Sacramento Assistant $ 350 Workshop Engineer Advanced MS-DOS San Jose Technician $ 850 Seminar Air Toxics Seminar Oakland Assistant $ 120 Enqineer Plastic Pipe Design In-House 3-5 staff $1700 Seminar engineers Specification Writing California Assistant $ 700 Engineer site Remediation Davis Assistant $ 900 Project Planning and Engineer and Decision-Making Course Senior Engineer ER:ING D:IV:IS:ION TOTAL $5940 DESCRIPTION SITE ATTENDEE AMOUNT Introduction to Bay Area Engr.Asst. $ 300 Supervision Construction Bay Area Sr. Engr. $ 400 Litigation Conference Construction Claims Monterey Sr. Engr. $ 200 Seminar Construction Lake Tahoe, Sr. Engr. $ 500 Conference Nevada CONSTRUCTION DIVISION TOTAL $1400 GRAND TOTAL: $11,640 . Centr~_ Contra Costa Sanitar~ Jistrict BOARD OF DIRECTORS PAGE 1 OF 3 POSITION PAPER BOARD MEETING OF February 7, 1991 NO. 5. ENGINEERING b. SUBJECT AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AMENDMENT WITH JOHN CAROLLO ENGINEERS TO DESIGN 1-680/SR-24 SEWER RELOCATIONS, PHASE 3, DISTRICT PROJECT NO. 4782 DATE February 1, 1 991 TYPE OF ACTION AUTHORIZE AGREEMENT SUBMITTED BTad J. Pilecki Senior Engineer INITIATING DEPT/Ei'\gineering Department/ Engineering Division ISSUE: Board of Directors' authorization is required for the General Manager-Chief Engineer to execute a consulting engineering agreement/amendment when it is greater than $50,000. BACKGROUND: To accommodate construction of the 1-680/SR-24 interchange expansion, the District has been requested to relocate a number of its sewers. The sewer relocation projects have been split into phases to better coordinate with Caltrans' phased interchange project. Construction of the second phase of sewer relocations is expected to be completed in February 1 991 . Caltrans has requested the District to prepare detailed plans and specifications for the third phase of the sewer relocation. The third phase of sewer relocations will consist of two relocations (approximately 3,800 feet of 33-inch sewer and 1,200 feet of 10- and 12-inch sewer) between Oak Park Boulevard and Monument Boulevard. Plans and specifications for the relocation are to be submitted to Caltrans for approval by May 1991. The construction of the relocations must be completed by December 31, 1991. To meet the short schedule, staff proposes to retain a consulting engineering firm to prepare the plans and technical specifications. A cost-reimbursement contract with a cost ceiling of $111,135 has been negotiated with the engineering firm of John Carollo Engineers (JCE) of Walnut Creek. JCE was selected because of its design experience on the Phase 1 and 2 relocations and its ability to meet Caltrans' schedule. Attachment 1 provides a detailed breakdown of the design budget. The predesign level total project cost for Phase 3 relocations is estimated to be $1,718,000. The total project cost for all Caltrans' relocations associated with the 1-680/SR-24 expansion is $9,680,000. Caltrans reimburses in arrears; therefore, the Board of Directors must authorize funds for the project, even though Caltrans will eventually compensate the District for all costs attributable to the 1-680/SR-24 interchange expansion. Caltrans is proceeding with the design of the 1- 680/SR-24 interchange expansion despite on-going CEQA litigation and will reimburse the District for all costs incurred. Staff will provide an update of the litigation impacts on the proposed project. The 1-680/SR-24 Sewer Relocations Project, Phase 3, is described in detail in the 1990-1991 Capital Improvement Budget starting on page CS-30. REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A-9/85 TJP DRW RAB ~pvJ SUBJECT AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AMENDMENT WITH JOHN CAROLLO ENGINEERS TO DESIGN 1-680/SR-24 SEWER RELOCATIONS, PHASE 3, DISTRICT PROJECT NO. 4782 POSITION PAPER PAGE 2 DATE OF 3 February 1, 1991 This project has been evaluated by staff and determined to be exempt from the California Environmental Quality Act (CEQA) under CEQA Statute 21080.21 since it involves construction of pipeline of less than one mile in total length, which will be located in streets and easements. RECOMMENDATION: Authorize the General Manager-Chief Engineer to execute a cost- reimbursement contract with a cost ceiling of $111,135 with John Carollo Engineers to design Phase 3 of the 1-680/SR-24 Sewer Relocation Project, District Project No. 4782. 1302B-9/85 Page 3 of 3 ATTACHMENT 1 1-680/SR-24 SEWER RELOCATIONS, PHASE 3 DESIGN BUDGET John Carollo Engineers $111,135 Soils 15,000 Aerial Survey 12,000 Ground Survey 15,000 District Forces (Design) 1 53.865 Subtotal $207,000 Contingency (10%)2 21 .000 Total Cost $228.000 1 District forces will direct the consultant's work, obtain and coordinate utility information, provide potholing and TV inspection, prepare front-end specification, provide technical review, coordinate aerial and geotechnical consultants, and develop planning evaluations. 2 If necessary, District staff will use this contingency to issue consultant contract change orders or fund additional force account work. T JP:pk 01/24/91 . Centra ~ontra Costa Sanitar) )istrict BOARD OF DIRECTORS PAGE 1 OF 2 POSITION PAPER BOARD MEETING OF NO. 6. TREATMENT PLANT a. Februar 7 1991 SUBJECT AUTHORIZE EXECUTION OF AN AGREEMENT WITH CAMP, DRESSER AND MCKEE, INC. TO PERFORM AN ELECTRICAL SYSTEM ANALYSIS, DISTRICT PROJECT NO. 10084 AND AUTHORIZE AN ALLOCATION OF $160,000 FROM THE DATE AUTHORIZE EXECUTION OF AGREEMENT SUBMITTED BY INITIATING DEPT/DIV. James L. Belcher, Senior En ineer Plant Operations Department ISSUE: Authorization by the Board of Directors is required for the General Manager-Chief Engineer to execute a Professional Services Agreement in an amount greater than $50,000. Authorization by the Board of Directors is required to allocate funds in excess of $50,000, to a specific project from a program contingency account. BACKGROUND: The existing Treatment Plant electrical distribution system was installed in 1975 as part of the 5A project. This complex power system has performed reliably and safely. Subsequently, there have been several major modifications to this system, including the Electric Aeration Air Blower, Dewatering Systems Improvements, and Dissolved Air Flotation projects. These projects utilized the existing electrical feed system without comprehensively analyzing the supplemental electrical system protection and service continuity factors required on a plant-wide basis. Future projects will incorporate additional energy saving equipment and emergency power facilities. Such equipment will have a major impact on the continued overall reliable operation of the Treatment Plant electrical system. The Electrical System Analysis project has three major tasks which are: short circuit analysis, harmonics analysis, and an electrical protection coordination study. These tasks will evaluate the future safety and reliability of this complex electrical distribution, as well as provide assurance that additional new equipment on future projects will not degrade the dependability of the system. This project will optimize the electrical equipment protection settings to maximize system safety consistent with maximum service continuity. Failure to maintain the current high standards of system protection could result in equipment failures, failure to meet permit requirements, and reduced safety of operations. The firm of Camp, Dresser and McKee, Inc. (COM) is recommended to be the consulting firm for this project using Norberg Engineering as its primary subconsultant. COM has performed the initial background work and is familiar with this project. A cost reimbursement agreement has been negotiated with COM with a cost ceiling of $140,000. Under the proposed agreement COM will provide three separate task documents and training for District personnel. IEWED AND RECOMMENDED FOR BOARD ACTION 1302A-9/85 SUBJECT AUTHORIZE EXECUTION OF AN AGREEMENT WITH CAMP, DRESSER AND MCKEE, INC. TO PERFORM AN ELECTRICAL SYSTEM ANALYSIS, DISTRICT PROJECT NO. 10084 AND AUTHORIZE AN ALLOCATION OF $160,000 FROM THE TREATMENT PLANT CONTINGENCY ACCOUNT. POSITION PAPER PAGE 2 OF 2 DATE February 4, 1991 The estimated project cost is $160,000. Funding from the Treatment Plant Program Contingency Account is required. This project has been evaluated by staff and determined to be in compliance with District CEQA Guidelines Section 11.9(c)(2). Therefore, no new environmental documents will be required. RECOMMENDATION: Authorize the General Manager-Chief Engineer to execute a Professional Services Agreement with a cost ceiling of $140,000 with COM for the Electrical System Analysis, District Project No. 10084. Authorize allocation of $160,000 from the Treatment Plant Program Contingency Account for this project. 1...-_________ 1302B-9/85 . Central Contra Costa Sanitary Oistrict BOARD OF DIRECTORS PAGE OF 19 POSITION PAPER BOARD MEETING OF February 7, 1 991 NO. 9. BUDGET AND FINANCE a. SUBJECT DATE February 4, 1991 RECEIVE THE 1990-1 991 OPERATIONS AND MAINTENANCE BUDGET REVIEW FOR THE SIX MONTHS ENDED DECEMBER 31, 1 990 TYPE OF ACTION RECEIVE BUDGET REVIEW SUBMITTED BY Walter N. Funasaki, Finance Officer INITIATING DEPT.lDIV Administrative/Finance & Accounting ISSUE: A report of the results of a comparative review of actual and budgeted Operations and Maintenance (O&M) revenues and expenses for the first six months of the 1 990-1991 fiscal year is provided in this Position Paper. BACKGROUND: A comparison of actual and budgeted District O&M revenues and expenses for the six months ended December 31, 1990, and projected revenues and expenses for the fiscal year ending June 30, 1991 is summarized below: Six Months Ended December 31, 1990 Fiscal Year Ending June 30, 1991 Variance Variance Favorable < Unfavorable> Favorable < Unfavorable > Actual Budgat Amount % Projected Budget Amount % Revenues Sewer Service $9,282,179 9,488,150 <205,971 > <2.1> 18,091,300 18,443,600 <352,300> <1.9> Charges City of 1,044,473 953,000 91,473 9.6 4,242,100 4,208,000 34,100 .8 Concord Other 915,753 1,056,925 <141,172> < 13.4> 1,588,012 1,848,400 <260,388> < 14.1 > Total 11,242,405 11,498,075 <255,670> <2.1 > 23,921,412 24,500,000 <578,588> <2.4> Revenues Expenses Administrative 1,797,306 2,015,966 218,660 10.8 3,887,553'\ 3,829,760 < 57,793> < 1.5> Engineering 1,647,891 1,634,277 <13,614> <0.7> 3,418,205 3,456,204 37,999 1.1 Collection 1,934,990 2,146,940 211,950 9.9 4,300,806 4,470,525 169,719 3.8 System Oper. Plant Oper. 5,875,854 6,164,244 288,390 4.7 12,018,076 12,305,464 287,388 2.3 Pumping Stn's 637,573 692,843 55,270 8.0 1,252,636 1,332,290 79,654 6.0 Total 11,893,614 12,654,270 760,656 6.0 24,877,276 25,394,243 516,967 2.0 Expenses Deficit $ 651,209 1,156,195 504,986 43.7 955,864 894,243 < 61,621> < 6.9> Reserves-End of Year (Beginning of Year Reserves as of June 30, 1990 is $2,806,7021: $1,850,838 Footnote A: The ro'ected ex enses of the Administrative Del artment include a 112,000 unantici ated Count fee for assessin collect in , and P J P P P allocating property tax revenues for cities, sc~g~ffisA,;,~~a~M'!W'tJF/;. FOR BOARD ACTION INITIA T1NG DEPT.lDIV. ri!df~~ y g, g 1302A-9/85 PM NG. SUBJECT RECEIVE THE 1 990-1 991 OPERATIONS AND MAINTENANCE BUDGET REVIEW FOR THE SIX MONTHS ENDED DECEMBER 31, 1990 POSITION PAPER PAGE DATE 2 OF 19 February 4, 1991 Based on the results of the first six months of the 1 990-1991 fiscal year, projections have been made of revenues and expenses for the full fiscal year. District revenues are projected to total $23,921,412 for the fiscal year, which are $578,588 or 2.4 percent lower than budgeted revenues of $24,500,000. Explanations of major variances between projected, or actual, revenues and budgeted revenues for the fiscal year and the six month period are presented in Attachment I. District expenses are projected to be $24,877,276 for the fiscal year, which are less than budgeted expenses of $25,394,243 by $516,967 or 2.0 percent. A significant unbudgeted expense of $112,000 for a newly imposed fee charged by the County to assess, collect, and apportion ad valorem tax revenues to cities, school districts, and special districts is included in the projected expenses of the Administrative Department. Variances between projected, or actual, expenses and budgeted expenses for the fiscal year and the six month period are described by major expense categories on Attachment II. Explanations of major over or underexpended accounts are provided by department on Attachment III. RECOMMENDATIONS: Receive the 1990-1991 Operations and Maintenance Budget Review for the six months ended December 31, 1990, and provide comments and guidance to District staff . 13028-9/85 ADS/Pos Pap#1/6MOO&M.Frm Attachment I CENTRAL CONTRA COSTA SANITARY DISTRICT REVENUE ACCOUNT VARIANCE EXPLANATIONS FOR THE SIX MONTHS ENDED DECEMBER 31. 1990 AND FISCAL YEAR ENDING JUNE 30. 1991 Six MantIw Ended 12/31/90 F*lIII V.. Ending 8/30/91 v........ v........ Ftlvarable < Unfllv....bIe > Ftlvcnble<Unfllvcnble> Ac:t.... Budget Amount % Projected Budget Amount % Sewer Service (1) $9,282,179 9,488,150 <205,971 > < 2.1 > 18,091,300 18,443,600 <352,300> <1.9> Cherge Service Cherges - (2) 1,044,473 953,000 91,473 9.6 4,242,100 4,208,000 34,100 0.8 Concord T ep Instelletion (3) 12,443 17,800 < 5,357> <30.0> 24,800 35,400 < 10,600> <30.0> House Connection 141 30,807 57,200 < 26,393> <46.0> 57,200 110,000 < 52,800> <48.0> Inspection Mein Lines (51 44,482 11 2,400 < 67,918> <60.3> 73,000 194,000 <121,000> <62.4> Inspection Plen Review (6) 22,152 59,600 < 37,448> <62.7> 50,000 127,000 < 76,200> <60.0> Septic T enk 171 38,587 52,500 < 13,913 <26.4> 82,100 105,000 < 22,900> <21.8> Dumping Industriel Permit (8) 18,156 41,400 < 23,244> <56.0> 82,600 106,600 < 24,000> <22.5> Fees Frenchise Fees (9) 494,112 408,000 86,112 21.1 494,112 408,000 86,112 21.1 Abendonment Fees (101 < 5,399 > 11,300 < 16,699> <147.7> 1,000 29,000 < 28,000> <96.6> Rebetes to District (11) 21,631 11,500 10,131 88.1 75,000 23,100 51,900 124.7 Interest Income (121 119,463 164,800 < 45,337 > < 27.4> 358,800 408,200 < 49,400> <12.1 > 11,123,086 11,377,650 <254,564> < 2.2> 23,632,812 24,197,900 <565,088> < 2.3> All Other Accounts 119,319 1 20,425 < 1,106> < 0.9> 288,600 302,100 < 13,500> < 4.5> T otel Revenues $11 ,242,405 11,498,075 < 255,670> < 2.1 > 23,921,412 24,500,000 <578,588> < 2.4> Variance Exolanations: ( 1) Sewer Service Charges for the first six month period were $205,971 less than budget as a result of lower than anticipated counter collections due to reduced housing construction activity and lower than anticipated commercial collections due to lower than anticipated water flows. With construction activity anticipated to continue at reduced levels, these revenues are projected to be $352,300 under budget for the fiscal year. ( 2) Service Charges - Concord were $91,473 over budget for the first six month period; the payment recorded in the first six months merely represents an advance payment of one-half of the billing for the last half of the prior fiscal year. Projected revenues for the fiscal year are $34,100 more than budget primarily as a result of a higher than budgeted flow factor for the City of Concord. ( 3) Tap Installation revenues were $5,357 less than budget for the first six month period primarily due to lower than anticipated activity in the housing construction industry. Projected revenues for the fiscal year are $10,600 less than budget as a result of the continued effect of the underrealization of the first six months. The two-men tap installation crew members in the Collection System Operations Page 3 of 19 Department have been rec.....lgned to other work activities, an.. ._erform tap installation work as required. ( 4) House Connection Inspection revenues were $26,393 less than budget for the first six month period primarily due to the lower housing construction activity referenced for Tap Installation. The anticipated continued effect of the lower activity results in projected revenues being $52,800 under budget for the fiscal year. (5) Main Lines Inspection revenues for the first six month period were $67,918 less than budget primarily due to fewer than anticipated medium- and large-sized subdivisions being developed. As the current trend is anticipated to continue, revenues for the fiscal year are projected to be $121,000 under budget. Two Engineering Department inspectors have been transferred from House Connection and Main Lines Inspection work because of the reduced construction activity; these inspectors are performing inspections for the Collection System Operations Department and on capital projects. (6) Plan Review revenues for the first six month period were $37,448 less than budget and reflect the same revenue trend as for Main Lines Inspection. As this current trend is anticipated to continue, revenues are projected to be $76,200 under budget for the fiscal year. Personnel involved in Plan Review have been assigned the following activities because of the reduced volume of plan reviews: review of rebates; identification of illegal connections; and revising the Standard Specifications. (7) Septic Tank Dumping revenues were $13,913 less than budget for the first six month period primarily due to a lower than anticipated number of waste loads delivered for treatment. Projected revenues for the fiscal year are $22,900 less than budget as a result of the continued trend of the first six months. ( 8) Industrial Permit Fees revenues for the first six month period were $23,244 less than budget primarily due to fewer than anticipated permit applications. Projected revenues for the fiscal year are $24,000 less than budget. (9) Franchise Fees are billed to franchised refuse collectors annually in the first six month period based on a projection of District expenses to administer the franchise agreements. The fees exceed budget by $86,112, reflecting the higher than anticipated administrative expenses incurred related to refuse collection rate-setting, recycling, solid waste disposal, and other solid waste issues. (10) Abandonment Fees revenues were $16,699 less than budget for the first six month period primarily because of a lower number of abandonment permits issued than anticipated and a number of refunds as a result of the abandoned lateral subsequently being reused. Projected revenues for the fiscal year are $28,000 less than budget as a result of the continued trend of the first six months. (11) Rebates to District revenues for the first six month period were $10,131 higher than budget primarily due to several unanticipated projects with rebates being completed this year. As several additional unanticipated rebates are expected to be completed in the balance of the fiscal year, projected revenues are $51,900 higher than budget. (12) Interest Income is $45,337 less than budget for the first six month period primarily due to lower than anticipated interest rates. Projected interest income for the fiscal year is $49,400 less than budget because investment earnings for the balance of the fiscal year are anticipated to be closer to budget as they were based on lower rates. ADS/Budget#1/6MoO&M.1 Page 4 of 19 Attachment" CENTRAL CONTRA COST A SAN IT ARY DISTRICT SUMMARY OF ACTUAL AND BUDGETED O&M EXPENSES BY EXPENSE CATEGORY FOR THE SIX MONTHS ENDED DECEMBER 31,1990 AND THE FISCAL YEAR ENDING JUNE 30,1991 Six Months Ended December 31, 1990 Fiscal Year Ending June 30, 1991 .~._-------------------------------------------- -----------...------------.-.------------------- Variance Variance Favorable (Unfavorable) Favorable (Unfavorable) ------------------------ ------------------------ Expense Category Actual Budget Amount l Projected Budget Amount X --------------------- ------------------------------------------------ ------------------------------------------------ Labor & Employee Benefits (1) S8,816,975 9,211,748 394,m 4.3 18,288,557 18,708,376 419,819 2.2 Utilties (2) 1,531,798 1,553,586 21,788 1.4 3,091,714 3,116,790 25,076 0.8 Chemicals (3) 595,435 493,870 (101,565) (20.5) 1,138,787 983,700 (155,087) (15.8) Repairs & Maint. (4) 623,039 802,727 179,688 22.4 1,338,978 1,568,724 229,746 14.6 Hauling & Disposal (5) 148,935 189,712 40,777 21.5 356,135 454,249 98,114 21.6 Prof. & Legal Servo (6) 154,219 137,982 ( 16,237) (11.7) 322,700 298,600 (24,100) (8.1) OUtside Services (7) 713,090 828,031 114,941 13.9 1,640,162 1,430,786 (209,376) (14.6) Materials & Supplies (8) 420,837 503,486 82,649 16.4 906,888 1,048,947 142,059 13.5 All Other 294,639 430,127 135,488 31.5 646,943 731,438 84,495 11.6 Total District Expenses 13,298,967 14,151,269 852,302 6.0 27,730,864 28,341,610 610,746 2.2 Total Capitalized Expenses (9) (1,405,353) (1,496,999) (91,646) 6.1 (2,853,588) (2,947,367) (93,779) 3.2 Net District Expenses $11,893,614 12,654,270 760,656 6.0 24,877,276 25,394,243 516,967 2.0 ================================================ c:=:==:=====================:=:========:===:==== (1) labor and Employee Benefits: The favorable variances of $394,773 for the six month period, and $419,819 projected for the fiscal year are primarily the result of unfilled authorized staff positions in the Engineering, Collection System Operations, and Plant Operations Departments. (2) Utilities: The minor favorable variances of $21,788 for the six month period, and $25,076 projected for the fiscal year are primarily the result of a favorable variance in the Plant Operations Department's landfill gas expense due to lower gas usage, offset by an unfavorable variance in electrical expense from higher than anticipated usage. Page 5 of 19 (3) Chemicals: The unfavorable variances of $101,565 for the six month period, and $155,087 projected for the fiscal year are primarily the result of greater than anticipated use of lime and polymers in the wastewater treatment process. (4) Repairs and Maintenance: The favorable variances of $179,688 for the six month period, and $229,746 projected for the fiscal year are primarily the result of using District trainees for certain collection system repair work instead of outside contractors, and a reduced level of repair and maintenance work because of unfilled positions and a smaller number of collection system construction crews. (5) Hauling and Disposal: The favorable variances of $40,777 for the six month period, and $98,114 projected for the fiscal year primarily reflect the avoidance of the need to haul sludge off site in the event of a furnace failure, and reduced charges resulting from a change in refuse collection container sizes and frequency of service at the Treatment Plant. (6) Professional and Legal Services: The unfavorable variances of $16,237 for the six month period, and $24,100 projected for the fiscal year are primarily the result of a greater than anticipated need for labor counsel services related to personnel grievances, appeals, and arbitrations. (7) Outside Services: The favorable variance of $114,941 for the six month period, and unfavorable variance of $209,376 projected for the fiscal year are primarily the result of the following departmental explanations: Administrative: Technical Services expense was $48,210 underexpended for the six month period primarily due to the outside consultant services related to the solid waste reduction requirement of AS 939 being incurred in the second half of the fiscal year; this account is projected to be equivalent to budget for the fiscal year. Recruitment Expense is projected to be $50,000 overexpended for the fiscal year because of greater use of recruitment firms for engineering positions. Page 6 of 19 Other Public Agency Services expense is projected to be $106,000 overexpended for the fiscal year because of a newly imposed County fee to assess, collect, and apportion ad valorem taxes. Enaineering: Technical Services expense is higher than budget for the six month period by $25,212 and projected to be $40,110 overexpended for the fiscal year primarily because of greater than anticipated use of temporary personnel due to unfilled staff positions; an offsetting reduction is reflected in the Salaries and Wages and related employee benefits expenses. Collection Svstem Ooerations: Technical Services expense is projected to be $38,400 overexpended for the fiscal year primarily because of increased use of temporary agency personnel; a temporary truck driver is anticipated to be required to haul reclaimed water because of the drought, and temporary personnel will be needed for unfilled staff positions. The unfilled staff positions are reflected in the favorable variance in the Salaries and Wages and related employee benefits expenses. Plant Ooerations: Technical Services expense is $83,846 less than budgeted expense for the six month period and is projected to be $63,900 underexpended for the fiscal year because certain testing and monitoring activities by outside firms will be deferred to the next fiscal year. (9) Total Capitalized Expenses: The unfavorable variances of $91,646 for the six month period, and $93,779 projected for the fiscal year are primarily the result of a lower than anticipated level of Engineering Department staff effort applied to capital projects during the first six months of the fiscal year because of unfilled job positions. ADS/Budget# 1/6moO&M.1I Page 7 of 19 Attachment III CENTRAL CONTRA COSTA SANITARY DISTRICT EXPENSE ACCOUNT VARIANCE EXPLANATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 1990 ADMINISTRATIVE DEPARTMENT Six Months Review: The departmental operations and maintenance expenses for the six months ended December 31, 1990 totaled $1,797,306 and were $218,660 less than budgeted expenses of $2,015,966. The 10.8 percent underexpenditure is primarily the result of the following expense account variances: Salaries and Wages and related employee benefits expenses of $1,264,427 are $90,001 less than budgeted expenses of $1,354,428 for the six month period primarily because of an unfilled position for the Household Hazardous Waste program, the Affirmative Action Trainee program being implemented a month later than expected, and less overtime incurred than anticipated. These accounts are projected to be $50,548 underexpended for the fiscal year. Directors' Fees and Expenses of $12,320 are $4,780 less than budgeted expenses of $17,100 for the six month period primarily because of a lower than anticipated number of conferences attended by Board members. This account is projected to be $4,000 underexpended for the fiscal year. Outside Repairs and Maintenance expense of $20,938 is $4,774 less than budgeted expense of $25,712 for the six month period primarily because anticipated repairs to Print Shop equipment were not required during the reporting period. This account is projected to be $6,000 underexpended for the fiscal year. Computer Maintenance expense of $6,698 is $2,118 less than budgeted expense of $8,816 for the six month period primarily because a maintenance agreement for the Records Management System will be effective during the last half of the fiscal year instead of during the reporting period. This account is projected to be equivalent to budget for the fiscal year. Janitorial and Refuse Removal expense of $13,048 is $7,317 less than budgeted expense of $20,365 for the six month period primarily because charges for two months will be recorded in the second half of the fiscal year because of a delay in P?ge 8 of 19 processing caused by a disputed invoice, and the normal year-end invoice accrual process. This account is projected to be equivalent to budget for the fiscal year. Legal Services-Board expense of $10,298 is $9,052 less than budgeted expense of $19,350 for the six month period primarily because of a lower than anticipated incidence of Board-level issues requiring legal opinion. This account is projected to be $9,000 underexpended for the fiscal year. Legal Services-Staff expense of $63,127 is $26,723 higher than budgeted expense of $36,404 for the six month period primarily as a result of a greater than anticipated need for legal services related to personnel grievances, appeals, and arbitrations. This account is projected to be $34,000 overexpended for the fiscal year. Outside Safety Services expense of $10,985 is $4,815 less than budgeted expense of $15,800 for the six month period primarily due to the deferral of industrial hygiene and disaster program planning services to the second half of the fiscal year. This account is projected to be equivalent to budget for the fiscal year. Technical Services expense of $91,284 is $48,210 less than budgeted expense of $139,494 for the six month period primarily due to the major expense for outside consultant services related to the solid waste reduction requirements of AB939 being incurred in the second, rather than the first, six months of the fiscal year. This account is projected to be equivalent to budget for the fiscal year. Other Public Agency Services expense of $55,166 is $5,334 less than budgeted expense of $60,500 for the six month period primarily because of a lower than anticipated charge from Contra Costa County for collecting the Sewer Service Charges on the tax rolls. However, a significant unbudgeted expense of $112,000 for a newly imposed fee charged by the County to assess, collect, and apportion ad valorem tax revenue will cause this account to be overexpended for the fiscal year. This account is projected to be $106,825 overexpended for the fiscal year. Reprographic Services expense of $38,809 is $21,006 higher than budgeted expense of $17,803 for the six month period primarily due to expenses being misclassified to this account instead of to the Public Information expense account; an equivalent underexpenditure is reflected in the Public Information account. Page 9 of 19 Corrections to both expense accounts will be recorded in the second half of the fiscal year. This account is projected to be equivalent to budget for the fiscal year. Recruitment expense of $37,275 is $7,575 higher than budgeted expense of $29,700 for the six month period primarily because of the greater use of recruitment firms for engineering positions and for the Public Information and Graphics Coordinator position. This account is projected to be $50,000 overexpended for the fiscal year. Bindery Services, Press and Camera Services, Special Reprographic Services, and Typesetting Services expense accounts are used to record the expense of printing and graphic services performed by the Administrative Department's Reprographics Unit for other departments, or are chargeable to capital projects. Such apportionment of expenses, plus labor and benefits, are recorded in the user department's Reprographic Services expense account or to capital project accounts; the account which is used to offset such charge outs within the Administrative Department is the Reprographic Chargeouts account. The combined net underexpenditure of $912 for all four accounts, comprised of expenses of $55,872 compared to budgeted expenses of $56,784, is the result of slightly less reprographic requirements than anticipated during the six month period. These accounts are projected to be equivalent to budget on a combined basis for the fiscal year. Operating Supplies expense of $20,773 is $ 11,758 less than budgeted expense of $32,531 for the six month period primarily because of lower than anticipated usage of supplies by the Print Shop. This account is projected to be $9,000 underexpended for the fiscal year. Rents and Leases expense of $10,322 is $2,112 less than budgeted expense of $12,434 for the six month period primarily due to lower copier usage during the reporting period. This account is projected to be $2,000 underexpended for the fiscal year. Public Information expense of $21,731 is $23,569 less than budgeted expense of $45,300 for the six month period primarily because of the misclassification described in the variance explanation for the Reprographic Services account. This account is projected to be equivalent to budget for the fiscal year. Page 10 of 19 Technical Training, Conference, and Meeting expense of $11,341 is $9,327 less than budgeted expense of $20,668 for the six month period primarily because the District-sponsored management and supervision training program was deferred to the second half of the fiscal year. This account is projected to be $6,000 underexpended for the fiscal year. Election Expense of $0 is $40,000 less than budgeted expense for the six month period because no election expense was incurred due to the incumbent Board Members being unopposed in the general election. This account is projected to be $40,000 underexpended for the fiscal year. For all other individual departmental expense accounts, the actual expense for the six month period did not vary more than $5,400 of budgeted expense. The cumulative net variance between actual and budgeted expenses for all these accounts for the fiscal year is projected to be $6,484 underexpended. Fiscal Year Proiection: The Administrative Department's operations and maintenance expenses are projected to be $57,793 overexpended for the fiscal year ending June 30, 1991, as a result of: underexpenditures in Salaries and Wages and related employee benefits of $50,548, Directors' Fees and Expenses of $4,000, Outside Repairs and Maintenance of $6,000, Legal Services-Board of $9,000, Operating Supplies of $9,000, Rents and Leases of $2,000, Training, Conferences, and Meetings of $6,000, and Election Expense of $40,000; overexpenditures in Legal Services - Staff of $34,000, Other Public Agency Services of $106,825, and Recruitment of $50,000; and the cumulative net variance between actual and budgeted expense for all other accounts of $6,484 underexpended. ENGINEERING DEPARTMENT Six Months Review: Departmental operations and maintenance expenses for the six months ended December 31, 1990 totaled $1,647,891 and were $13,614 higher than budgeted expenses of $1,634,277. The. 7 percent overexpenditure is primarily the result of the following expense account variances: Salaries and Wages and related employee benefits expenses of $2,447,887 are $42,527 less than budgeted expenses of $2,520,414 for the six month period primarily because of unfilled authorized positions and the allocation of lower than budgeted employee benefits expense charges. These accounts are projected to be $141,693 underexpended for the fiscal year. Page 11 of 19 Technical Services expense of $142,386 is $25,212 higher than budgeted expense of $117,174 for the six month period primarily because of greater than anticipated use of non-District personnel due to unfilled staff positions. This account is projected to be $40,110 overexpended for the fiscal year. Reprographic Services expense of $6,957 is $5,763 less than budgeted expense of $12,720 for the six month period primarily because printing the Capital Improvement Plan and the Collection System map books will occur during the second half of the fiscal year instead of the first. This account is projected to be $ 2, 7 84 underexpended for the fiscal year. Operating Supplies expense of $3,066 is $9,161 less than budgeted expense of $12,227 for the six month period primarily due to deferring purchase of certain supplies to the second half of the fiscal year. This account is projected to be $2,054 underexpended for the fiscal year. Capitalized Salaries and Wages and related capitalized accounts of $1,088,857 are $65,488 less than budgeted expenses of $1,154,345 for the six month period primarily due to less staff hours charged to capital projects as a result of unfilled staff positions. These accounts are projected to be $80,172 underrealized for the fiscal year. For all other individual departmental expense accounts, the actual expense for the six month period did not vary more than $5,000 of budgeted expense. The cumulative net variance between actual and budgeted expenses for all these accounts for the fiscal year is projected to be $11,750 overexpended. Fiscal Year Proiection: The Engineering Department's operations and maintenance expenses are projected to be $37,999 underexpended for the fiscal year ending June 30, 1991. The underexpenditure is projected to result from: an overexpenditure in Technical Services of $40,110; underrealization of Capitalized Salaries and Wages and related capitalized expenses of $80,172; underexpenditure in Salaries and Wages and related employee benefits of $141,693, Reprographic Services of $2,784, and Operating Supplies of $2,054; and a cumulative net overexpenditure of $11,750 in all other accounts. COLLECTION SYSTEM OPERATIONS DEPARTMENT Six Months Review: Departmental operations and maintenance expenses for the six months ended December 31,1990 totaled $1,934,989, and were $211,951 less than budgeted expenses of Page 12 of 19 $2,146,940. The 9.9 percent underexpenditure is primarily the result of the following expense account variances: Salaries and Wages and related employee benefits expenses of $1,542,919 are . $101,791 less than budgeted expenses of $1,644,710 for the six month period primarily because of unfilled authorized staff positions and lower than budgeted employee benefits charges. These accounts are projected to be $26,322 underexpended for the fiscal year. Vehicle/Equipment Repairs and Maintenance expense of $42,245 is $7,143 higher than budgeted expense of $35,102 for the six month period primarily because of a greater than anticipated number of repairs to vehicles and equipment. This account is projected to be $10,545 overexpended for the fiscal year. Outside Repairs and Maintenance expense of $60,232 is $72,197 less than budgeted expense of $132,429 for the six month period primarily because of a reduction in repair and maintenance work requiring the use of outside contractors for repaving jobs and raising manhole structures; trainees in the District's trainee program have been employed in raising manhole structures instead of outside contractors. The reduction in repair and maintenance work is caused by unfilled staff positions and a reduced number of construction crews. This account is projected to be $131,000 underexpended for the fiscal year. Spoils Removal expense of $ 15,069 is $15,069 higher than budgeted expense of $0 for the six month period because hauling construction spoils from the Walnut Creek facility to the landfill was anticipated to be recorded in the second half of the fiscal year. This account is projected to be $1,900 underexpended for the fiscal year. Technical Services expense of $70,983 is $3,082 less than budgeted expense of $74,065 for the six month period. However, higher than anticipated use of temporary agency personnel is projected during the second half of the fiscal year because of the anticipated need to hire a temporary truck driver for hauling reclaimed water because of the drought, and understaffing due to unfilled staff positions and devotion of personnel to the trainee program. This account is projected to be $38,400 overexpended for the fiscal year. Gasoline, Oil and Fuel expense of $38,568 is $8,355 higher than budgeted expense of $30,233 for the six month period primarily because of a 15 percent price increase for fuel. This account is projected to be $13,208 overexpended for the fiscal year. Page 13 of 19 Operating Supplies expense of $132,461 is $49,885 less than budgeted expense of $1 82,346 for the six month period primarily because of a lower than anticipated use of operating supplies as a result of the reduced number of construction crews, decreased sewer connections, and installation of overflow protection devices. This account is projected to be $108,998 underexpended for the fiscal year. Rents and Leases expense of $13,962 is $9,626 less than budget for the six month period primarily because of less than anticipated equipment rental due to a reduced number of construction crews. However, equipment rental is anticipated to exceed budgeted rental expense during the second half of the fiscal year due to requirements of the sewer rehabilitation demonstration projects. This account is projected to be $4,000 overexpended for the fiscal year. Capitalized Salaries and Wages and related capitalized accounts of $68,429 are $18,931 less than budgeted capitalized accounts of $87,360 for the six month period primarily because of a greater concentration of effort on unanticipated non- capital repair projects, and the effect of unfilled staff positions. These accounts are projected to be $25,212 underrealized for the fiscal year. For all other individual departmental accounts, the actual expense for the six month period did not vary more than $3,700 from budgeted expense. The cumulative net variance between actual and budgeted expenses for all these accounts for the fiscal year is projected to be $7,136 expended. Fiscal Year Projection: The Collection System Operations Department's operations and maintenance expenses are projected to be $169,719 underexpended for the fiscal year ending June 30,1991, as a result of: underexpenditures in Salaries and Wages and related employee benefits of $26,322, Outside Repairs and Maintenance of $131,000, Spoils Removal of $1,900, and Operating Supplies of $108,998; overexpenditures in Vehicle/Equipment Repairs and Maintenance of $10,545, Technical Services of $38,400, Gasoline, Oil and Fuel of $13,208, and Rents and Leases of $4,000; underrealization in Capitalized Salaries and Wages and related capitalized accounts of $25,212; and a net overexpenditure of $7,136 in all other expense accounts. PLANT OPERATIONS DEPARTMENT Six Months Review: Departmental operations and maintenance expenses for the six months ended December 31, 1990 totaled $5,875,854, and were $288,390 less than budgeted expenses of $6,164,244. The 4.7 percent underexpenditure is primarily the result of the following expense account variances: Page 14 of 19 Salaries and Wages and related employee benefits expenses of $3,223,658 are $148,853 less than budgeted expenses of $3,372,511 for the six month period primarily because of: filling a number of positions later than anticipated; vacancies caused by a long-term disability, inter-departmental transfer, and terminations; and the allocation of lower than budgeted employee benefits expense charges. These accounts are projected to be $200,658 underexpended for the fiscal year. Lime expense of $27,963 is $15,463 higher than budgeted expense of $12,500 for the six month period primarily because of the unanticipated use of lime to treat the sludge to control the concentration of copper in the ash within regulatory limits. This account is projected to be $40,000 overexpended for the fiscal year. Polymer expense of $175,643 is $45,843 higher than budgeted expense of $129,800 for the six month period primarily because of increased polymer usage to treat the greater quantities of sludge produced by the reintroduction of lime; additionally, there has been a higher than anticipated consumption of polymers in the Dissolved Air Flotation System. This account is projected to be $70,287 overexpended for the fiscal year. Boiler Chemicals expense of $11,859 is $4,359 higher than budgeted expense of $7,500 for the six month period primarily because of greater chemical usage required due to increased hardness of the water from the Contra Costa Water District. This account is projected to be $8,800 overexpended for the fiscal year. Electrical expense of $765,885 is $51,385 higher than budgeted expense of $714,500 for the six month period primarily due to increased electrical usage caused by the need to operate the standby electrically-driven blower during maintenance and repairs of the auxiliary boilers and steam turbines. In addition, the greater volume of sludge produced by the reintroduction of lime has caused higher electrical consumption in the operation of the new centrifuge and ancillary equipment. This account is projected to be $76,339 overexpended for the fiscal year. Landfill Gas expense of $386,977 is $57,232 less than budgeted expense of $444,209 for the six month period primarily due to lower than anticipated landfill gas usage resulting from process control adjustments to the furnace operations, and shut-down of the gas-driven auxiliary boilers during maintenance and repairs. This account is projected to be $73,121 underexpended for the fiscal year. Page 15 of 19 Water expense of $26,942 is $20,942 higher than budgeted expense of $6,000 for the six month period primarily because of increased water consumption by the new polymer systems and increased water consumption for more frequent removal of impurities from boilers due to poor water quality. This account is projected to be $14,000 overexpended for the fiscal year. General Repairs and Maintenance expense of $283,185 is $17,787 less than budgeted expense of $300,972 for the six month period primarily because of delays in shipping replacement repair parts until the second half of the fiscal year. This account is projected to be $16,944 underexpended for the fiscal year. Outside Repairs and Maintenance expense of $126,552 is $25,598 less than budgeted expense of $152,150 for the six month period primarily as a result of major outside repair services completed in December for turbine teardown, inspection and repair being billed and paid in January 1991. It is anticipated that budgeted outside repairs expenses will be incurred during the second half of the fiscal year. This account is projected to be $21,824 underexpended for the fiscal year. Ash Removal expense of $48,610 is $13,623 less than budgeted expense of $62,233 for the six month period primarily because an anticipated rate increase at the Colusa disposal site occurred later in the reporting period than was expected. This account is projected to be $20,567 underexpended for the fiscal year. Sludge Removal expense of $1,364 is $25,136 higher than budgeted expense of $26,500 for the six month period because the contingency provided for in this account of the possible need to haul sludge off site in the event of a furnace failure did not occur. This account is projected to be $65,561 underexpended for the fiscal year. Outside Safety Services expense of $5,625 is $825 higher than budgeted expense of $4,800 for the six month period; however, because of the retirement of the Plant Safety Specialist at the beginning of the second half of the fiscal year, specialized outside safety services will be required before the position is filled. This account is projected to be $41 ,025 overexpended for the fiscal year. Janitorial and Refuse Removal expense of $14,106 is $11,112 less than budgeted expense of $25,218 for the six month period primarily due to reduced charges resulting from a change in refuse collection container sizes and frequency of service. Page 16 of 19 This account is projected to be $13,000 underexpended for the fiscal year. Technical Services expense of $188,554 is $83,846 less than budgeted expense of $272,400 for the six month period primarily because certain required testing and monitoring activities by outside firms anticipated to occur during this reporting period will occur during the second half of the fiscal year. This account is projected to be $63,900 underexpended for the fiscal year. Office expense of $8,547 is $3,241 less than budgeted expense of $11,788 for the six month period primarily because of the increased use of Plant-produced video training programs, which require fewer supplies than slide/tape programs. This account is projected to be $4,852 underexpended for the fiscal year. Rents and Leases expense of $70,780 is $12,530 less than budgeted expense of $83,310 for the six month period primarily because of lower than anticipated lease rental expense for the incinerator ash unloading equipment. This account is projected to be $21,620 underexpended for the fiscal year. Public Agency Fees expense of $8,503 is $2,897 less than budgeted expense of $11,400 for the six month period primarily due to a delay in the certification of the Plant laboratory by the State Department of Health Services. This account is projected to be $400 overexpended for the fiscal year. Technical Training, Conferences, and Meetings expense of $12,824 is $4,328 less than budgeted expense of $17,152 for the six month period primarily due to rescheduling several training courses and in-house training programs to the second six months of the fiscal year. This account is projected to be equivalent to budget for the fiscal year. Fiscal Year Projection: The Plant Operations Department's operations and maintenance expenses are projected to be $287,388 underexpended for the fiscal year ending June 30, 1991, as a result of the following account variances: Underexpended < Overexoended > Salaries and Wages and related employee benefits $200,658 lime <40,000 '> < 70,287 > Polymer Page 17 of 19 Boiler Chemicals < 8,800 > < 76,339 > 73,121 < 14,000 > 1 6,944 21,824 20,567 65,561 <41,025 > 1 3,000 63,900 4,852 21,620 < 400 > 36.192. $287.388. Electrical Landfill Gas Water General Repairs and Maintenance Outside Repairs and Maintenance Ash Removal Sludge Removal Outside Safety Services Janitorial and Refuse Removal Technical Services Office Rents and Leases Public Agency Fees All other expenses, net Total PUMPING STATIONS Six Months Review: Pumping Stations operations and maintenance expenses for the six months ended December 31, 1990 totaled $637,572, and were $55,271 less than budgeted expenses of $692,843. The 8.0 percent underexpenditure is primarily the result of the following expense account variances: Salaries and Wages and related employee benefits expenses of $308,084 are $11,606 less than budgeted expenses of $319,690 for the six month period primarily because of filling a job position later than anticipated, and lower than budgeted allocation of employee benefits charges. These accounts are projected to be $598 underexpended for the fiscal year. Other Chemicals expense of $150,407 is $39,887 higher than budgeted expense of $110,520 for the six month period primarily because of greater than anticipated chemical treatment for odor and sulfide control required due to low flow volume caused by drought conditions. Page 18 of 19 This account is projected to be $36,000 overexpended for the fiscal year. Electrical expense of $ 111,527 is $22,099 less than budgeted expense of $133,626 for the six month period primarily because of lower electrical usage due to low flow volume. This account is projected to be $40,706 underexpended for the fiscal year. General Repairs and Maintenance expense of $19,138 is $8,962 less than budgeted expenses of $28,100 for the six month period primarily because of the purchase of repair parts which were pending delivery as of December 31, 1 990 and not recorded in the reporting period. This account is projected to be $ 1 4,900 underexpended for the fiscal year. Outside Repairs and Maintenance expense of $25,884 is $37,606 less than budgeted expenses of $63,490 for the six month period primarily because of the postponement of several repair projects pending completion of Pumping Stations modification plans. This account is projected to be $39,350 underexpended for the fiscal year. For all other individual Pumping Stations accounts, the actual expense for the six month period did not vary more than $4,700 of budgeted expense. The cumulative net variance between actual and budgeted expenses for all these accounts for the fiscal year is projected to be $20,100 underexpended. Fiscal Year Proiection: The Pumping Stations' operations and maintenance expenses are projected to be $79,654 underexpended for the fiscal year ending June 30, 1991, as a result of: underexpenditures in Salaries and Wages and related employee benefits of $598 Electrical of $40,706, and General Repairs and Maintenance of $ 1 4,900, and Outside Repairs and Maintenance of $39,350; overexpenditures in Other Chemicals of $36,000, and a net underexpenditure of $20,100 in all other accounts. ADS/Budget #1/6MoO&M.1II Page 19 of 19