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Home My WebLink AboutAGENDA BACKUP 12-17-92 Central Contra Costa Sanitary Jistrict BOARD OF DIRECTORS PAGE 1 OF 2 P APE R BOARD MEETING o'December 17, 1992 NO. 5. CONSENT CALENDAR b. ttereember 7, 1992 CCEPT GRANT OF EASEMENT FROM CONTRA OSTA COUNTY, JOB NO. 4888; ARCEL NOS. 2,3, AND 4, CONCORD AREA TYPE OF ACTION ACCEPT GRANT OF EASEMENT SUBMITTED BY ennis Hall INITIATING DEPT./DIV. Engineering Department/ SS E: Easements which are granted to the District by other public agencies require specific pproval by the Board of Directors. BACK R ND: The subject easement located on the Buchanan Field property is for the on-site public sewers which serve a commercial building complex at the northeast corner of Concord venue and John Glenn Drive. The County is developing this site and has leased the buildings o Pace Warehouse, Reynolds and Brown, and Sportmart. he County has granted the required easement subject to several conditions. The conditions are reasonable while they afford protection to the County for its operation of the land surrounding the airport. The conditions are in agreement with the District's usual operating procedures reflected in our Standard Specifications. Some of the conditions include a requirement to restore existing improvements if work on sewers is required, a prohibition of fences, trees, and above-ground structures within the easement, and a requirement to provide the County with prior notification of future major construction work. There is no relocation clause included in the conditions. This project has been evaluated by staff and determined to be exempt from the California Environmental Quality Act (CEQA) under District CEOA Guidelines, Section 18.6, since it involves a minor alteration in land use limitations. RECOMMENDATI N: Approve Grant of Easement from Contra Costa County, Job No. 4888, Parcel Nos. 2, 3, and 4, and authorize the President of the District Board of Directors and the Secretary of the District to execute said Grant of Easement and authorize the Grant of Easement to be recorded. REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A-9/85 DH JSM RAB INITIA ~(EPT./DIV II;;! ~~ ~ iE c ~ i.J.J (5 f ~ .' . I ~ PA,~CEl.. .. fj" ~~ PAce :se ~ .ti?EM.s ICA:'S.u nip (;'0 #Rc/ I 7. S~3 .-reus.: ~eJ - /IIJ.::o. PA.RC~L R~~~ 70 .tB~, P~R ~ INC. (r.9J-; Ct: L .C" ~C'.) ~\}E.~uE. o~\) 00~G ACCEPT GRANT OF EASEMENT JOB 4888 PARCELS 2,3,&4 CONCORD AREA ~ Central ~~~~~ g~~~R~~~ba~~ .Jistricl PAGE 1 OF2 POSITION PAPER BOARD MEETING OF December 17,1992 NO. 5. CONSENT CALENDAR c. ~1Ecember 7, 1992 SUBJECT APPROVE AND EXECUTE GRANT OF EASEMENT FROM THE MCPEAK FAMIL V, A LIMITED PARTNERSHIP, JOB NO. 1541, CONCORD AREA TYPE OF ACTION APPROVE AND EXECUTE GRANT OF EASEMENT SUBMITTED BY Dennis Hall INITIATING DEPT/DIV. Engineering Department! ISSUE: The subject easement is needed for access to District facilities located on the west side of the McPeak property adjacent to Highway 680. BACKGROUND: The District recently (November 4, 1992) granted a fee parcel of land to the City of Concord for use in the proposed freeway on- and off-ramp improvement project at Burnett Avenue. This sale of land left a portion of the District's remaining property "land-locked" because no access to the property is permitted from the freeway ramps. The right-of-way contract for this project between the District and the City of Concord requires the City to acquire the subject easement at no cost to the District. The subject Grant of Easement is for a "floating" access easement across the entire 2 Y:z acres of the McPeak property along an unspecified route to allow the McPeaks to make the best use of their land while also providing access to the District. This project has been evaluated by staff and determined to be exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 18.6, since it involves a minor alteration in land use limitations. RECOMMENDATION: Approve Grant of Easement from the McPeak Family, Job No. 1541, authorize the President of the District Board of Directors and the Secretary of the District to execute said Grant of Easement and authorize the Grant of Easement to be recorded. JSM RAB REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A-9/85 q1 DH IMJ INITIATING DEPT/DIV. .---........-..----.--.--. ._...__._._.._.._-_._--------~..__...._.... .-.-..-----......-.....-.-..--..............-----.-.---.--.---..-..----.-------------------.----. co~o co~ - o a:: >- 0 I- &L. ~ >- o ~ o ..I c.j ~ (j 2 :) en ~- c:tO W..I 11...1 O~ ~~ o CO <0 G ~CCESS f\-O~"\N EN" E~SEt.A >- ~ W W cr lL. ..... ........ " ........- ........ 0", ........ - - BURNETT AVE. o a: o o z o () &L. o > I- (3 o I- W W &L. - ./ ./' / ,/' /" / f<~ /' 0/ ci en c.j (j c.j o C\/ c.j o C'I) en .q' 2 o if o >- )( .q' ..I .q' o GRANT OF EASEMENT FROM THE Me PEAK FAMILY, PTNSHIP CITY OF CONCORD AREA - --- ----~--1-.- ---------_._-~-- -----......- -----._-~.----.-._..__.__.--_.-.-_.~----~----.------.-------~.---..-. ~ Central ;g~~~ g~~~R~~~ba~~ ilistrict PAGE 1 OF 4 POSITION PAPER BOARD MEETING OF December 17, 1992 NO. 5. CONSENT CALENDAR d. SUBJECT INITIATE PROCEEDINGS TO FORMALLY ANNEX 1 0 SEPARATE AREAS UNDER THE TITLE OF DISTRICT ANNEXATION 124 DATE December 7, 1992 TYPE OF ACTION INITlA lE ANNEXA llON D.A. 124 SUBMITTED BY Dennis Hall, Associate Engineer INITIATING DEPT.lDIV. Engineering Department/Infrastructure Div ISSUE: The District has received petitions for annexation for 10 parcels as shown on the attached tabulation and map. It is appropriate to initiate formal annexation proceedings with the Local Agency Formation Commission (LAFCO). BACKGROUND: LAFCO has requested that the District submit no more than 10 separate areas under anyone proceeding to avoid overloading their schedule. The subject areas are generally located in Alamo and Danville. LAFCO has indicated that they may add adjoining unannexed parcels to the separate areas we submit to eliminate islands or straighten boundary lines. The District will have to hold a public hearing to consider annexation of any parcel added by LAFCO. RECOMMENDATION: Adopt a Resolution of Application for the annexation of properties to Central Contra Costa Sanitary District under District Annexation 1 24. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEP~1~Y. .~ 1302A-9/85 DH JSM RAB DISTRICT ANNEXATION NO. 124 Tabulation of Parcels P.A. OWNER ADDRESS DATE APPROVED LEAD NO. & PARCEL NO. & ACREAGE BY BOARD AND AGENCY AREA REMARKS 1 91-4 Phillip L. Smith May 30, 1991 Contra Alamo 318 Diablo Blvd. #260 Negative Costa Danville CA 94526 Declaration by County 188-320-001 (6.0 AC) C.C. County 2 90-9 Ralf Gester June 8, 1990 CCCSD Alamo 919 Camino Ramon "Notice of Danville CA 94526 Exemption" by 192-240-007 (2.4 AC) CCCSD 3 92-8 Paul Peterson October 1, 1992 Contra Alamo 859 San Mateo Drive E.I.R. by C.C. Costa San Mateo CA 94401 County County 187-260-006 (64.08 AC) 4 91-1 Harry Nelson April 18, 1991 Contra Alamo 15 Camino Monte Sol Negative Costa Alamo CA 94507 Declaration by County 1 93-030-002 (3.7 AC) C.C. County 5 89-15 State of California May 4, 1989 State of Alamo Dept. of Parks & Recreation "Notice of California POBox 942896 Exemption" by Sacramento CA 94296 State of Calif. Ptn. 194-020-01 &-02 (2.02 AC) 6 90-1 5 East Bay Municipal Utility Dec. 20,1990 EBMUD Alamo District E.I.R. by EBMUD 2130 Adeline Street Oakland CA 94607 193-620-004 (12.54 AC) 7 89-27 J. A. Johnson, et al Nov. 16,.1989 Contra Alamo 560 S. Hartz Ave., #314 Negative Costa Danville CA 94526 Declaration by County 197-070-004 (1.335 AC) C.C. County 197-070-006 (0.41 AC) 8 92-1 Robert H. Falk January 9, 1992 Town of Danville POBox 432 Negative Danville Danville CA 94526 Declaration by 200-230-02 (10.53 AC) Town of Danville District Annexation No. 124 Tabulation of Parcels Page ~ 2 P.A. OWNER ADDRESS DATE APPROVED LEAD NO.& PARCEL NO. & ACREAGE BY BOARD AND AGENCY AREA REMARKS 9 90-8 Kenneth Wardhaugh May 17, 1 990 CCCSD Danville 906 Diablo Road "Notice of Danville CA 94526 Exemption" by 196-290-006 (0.68 AC) CCCSD 10 91-5 Randolph Finn, et al June 13, 1991 Town of Danville 315 Diablo Rd., Ste. 100 Negative Danville Danville CA 94526 Declaration by 196-320-004 (1.73 AC) Town of Danville 91-11 George P. Hill, et ux Sept. 19, 1992 CCCSD Danville 153 Hill Road "Notice of Danville CA 94526 Exemption" by 196-330-006 (1.01 AC) CCCSD 92-7 Shalom Eliahu August 20, 1992 Town of Danville 3491 Stage Coach Drive Negative Danville Lafayette CA 94549 Declaration by 196-330-007 (2.067 AC) Town of Danville -----~--_..-,..--...----'-___r__..-~---..,--.--~"'----.----.------.---.,----~---.-.--.----"-..~.-.---. c.c.~ .S.D. ANNEXATION NO. 124 Ai i . -;/- ~l "-'" / i\ \ \ \, .<'~'~, M ()st'~ R ()ck Spring ~ ( o ~...?... ......... ; <-'f. ......411\ _ _,c . : l, ~ ~r ) .~.... .... ~,..j ., . , . , , , Springs ., ., .,/ =_" ....A.A_ ~ Central ;g~~~ g~~~R~~~~a~~ iJistrict PAGE 1 OF 2 POSITION PAPER BOARD MEETING~ecember 17, 1992 NO. 5. CONSENT CALENDAR e. Df>1jcember 7, 1992 SUBJECT QUITCLAIM SEWER EASEMENT TO STEPHEN A. DUNNING, ET UX, JOB NOS. 2609 AND 4476, LAFAYETTE AREA TYPE OF ACTION APPROVE QUITCLAIM OF EASEMENT SUBMITTED BY INITIA TING DEPT.lDIV. ISSUE: Mr. and Mrs. Dunning, owners of Lot 5 of Subdivision 4787, have requested that the District quitclaim the subject easement. BACKGROUND: The subject easement was dedicated in 1977 at no cost to the District to provide public sewer service to a property south of Subdivision 4787. Subsequently, this property to the south was permitted to connect to an existing public sewer by extending a private side sewer across a portion of Lot 5 as shown on the attached map. A private sewer easement was granted by the Dunnings for this side sewer extension. The subject easement is no longer needed. This project has been evaluated by staff and determined to be exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 18.6, since it involves a minor alteration in land use limitations. RECOMMENDATION: Approve Quitclaim Deed to Mr. Stephen A. Dunning, et ux, Job Nos. 2609 and 4476, authorize the President of the District Board of Directors and the Secretary of the District to execute said Quitclaim Deed and authorize the Quitclaim Deed to be recorded. REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A.9/85 ARJt DH MJ ;7::-' ROGER J. DOLAN INITIATING DEPT.lDIV. JSM RAB . ..........---~.-r...__.._M... ..... ....... ..... ... ..... " (S\ , i I / / '\. / '" '" I " " I ,,'-!!OXAN I ,,-- Nc LA " --__ Nc I ....... --- - ---- ./ i ---- --\ I l' \ /~--:--\ ~(? 0 S.S \ t --.-- 594 0 .c. \ .R. 45 \ \ \ PUBLIC ) \) /\ MAIN ~ ------.. -- - "-- .............. ............ "" - """ '" ~ '" ,,' '" ,. , ~ .s- ~ ~ / ,.0 ~t-: /~~ - ~O ~ &~ """ ~ J)> QUITCLAIM EASEMENT ~ c& QUITCLAIM EASEMENT JOBS 2609 & 4476 LAFAYETTE AREA ,---------------- PAGE 1 OF 1 BOARD MEETING OF December 17, 1992 NO. 5. CONSENT CALENDAR f. SUBJECT DATE AUTHORIZE LEAVE OF ABSENCE WITHOUT PAY FOR RUTH BENNETT, ENGINEERING APPLICATIONS TECHNICIAN II, FROM DECEMBER 2, 1992, THROUGH MARCH 31, 1993 December 8, 1992 TYPE OF ACTION AUTHORIZE LEAVE OF ABSENCE SUBMITTED BY William V. Clement En ineerin Support Supervisor INITIATING DEPT./DIV. Engineering Department/ Plant Engineering Division ISSUE: Board of Directors' approval is required for an employee Leave of Absence Without Pay for longer than 30 working days. BACKGROUND: Ruth Bennett, Engineering Applications Technician II, has been on Pregnancy Disability Leave since September 19, 1992. Under the provisions of the Memorandum of Understanding, she may take up to six months leave from the date of the birth of her child by using a combination of pregnancy disability leave, sick leave, vacation, earned overtime, and leave of absence without pay. To continue her pregnancy leave, Mrs. Bennett is requesting Board approval of a Leave of Absence Without Pay from December 2, 1992, through March 31, 1993. RECOMMENDATION: Authorize a Leave of Absence Without Pay for Ruth Bennett, Engineering Applications Technician II, effective December 2, 1992, through March 31, 1993. RE~EWEDANDRECOMMENDEDFORBOARDAcnON WVC WEB RAB /A;tC-- W(6 INITIATING DEPT.iDIV. 1302A-7/91 . .-.---.-....------.-------------------------.---.----------T---.-..--------..-..---..-----..---.---.-----.-.---.---...--..---..--- Central Contra Costa Sanitary District BOARD OF DIRECTORS PAGE 1 OF 18 BOARD MEETING OF NO. December 17, 1992 6. HEARINGS a. CONDUCT PUBLIC HEARINGS TO CONSIDER THE APPLICATIONS FOR REFUSE COLLECTION RATE INCREASES SUBMITTED BY VALLEY WASTE MANAGEMENT AND ORINDA-MORAGA DISPOSAL SERVICE, INC. EFFECTIVE JANUARY 1, 1993 DATE December 14 1992 TYPE OF ACTION SUBJECT CONDUCT PUBLIC HEARINGS SUBMITTED BY INITIATING DEPT.lDIV. Walter N. Funasaki, Finance Officer Administrative/Finance and Accounting ISSUE: Public hearings will be conducted on December 17, 1992 to consider the applications for rate increases submitted by two of the three refuse collection companies franchised by the District; following the public hearings, the refuse collection rates to be effective January 1, 1993 are scheduled to be established by the Board of Directors. BACKGROUND: Applications for refuse collection rate increases effective January 1, 1993 were submitted by Valley Waste Management and Orinda-Moraga Disposal Service, Inc. District staff analyses of the rate applications have been provided to the Board of Directors, the cities of Lafayette and Orinda, the towns of Danville and Moraga, the refuse collectors, and members of the public who requested them. Written or public comments from the city and town councils have been requested for the Board's consideration during the public hearings. Written comments from the Town of Danville and the cities of Lafayette and Orinda have been received for the Board's consideration and are provided on Attachments I, II, and III. The staff analyses of the rate applications were presented at a Board workshop on December 3, 1992. The refuse collectors were provided an opportunity to address the Board with comments related to the rate applications and staff analyses. Each of the refuse collectors addressed a number of issues at the Board workshop. Orinda-Moraga Disposal Service, Inc. summarized its issues in a letter dpted December 2, 1992, which is provided on Attachment IV. The issues raised by each refuse collector are reviewed in the following sections. Valley Waste Management Issue: The Company's Allowable Profit Is Adversely Affected By Reduced Commercial Revenues Resultina From The Commercial Recvclina Proaram The Company asserts that commercial revenues will be reduced as commercial accounts participate in the recycling program. Because the Residential Customer Equivalent Units used in computing Allowable Profit are based on total revenues, a lower profit results from the Company's efforts to promote commercial recycling; therefore, the Allowable Profit calculation should be revised to remove this adverse effect. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATI.NG DEPT.lDIV. 1) WNF PM ------------ ----------------------_.----------------------T--------------------------------------------------- CONDUCT PUBLIC HEARINGS TO CONSIDER THE APPLICATIONS FOR REFUSE COLLECTION RATE INCREASES SUBMITTED BY VALLEY WASTE MANAGEMENT AND ORINDA-MORAGA DISPOSAL SERVICE, INC. EFFECTIVE JANUARY 1, 1993 SUBJECT PAGE DATE 2 OF 18 December 14, 1992 District staff recommends that the Allowable Profit calculation not be revised, as no significant reduction in commercial revenues in 1 992 has been apparent, although the recycling program was substantially implemented. Issue: The Summary Of The Expense Reductions Claimed To Offset The Intercompany Charaes Is Understated The District staff's summary of the expense reductions claimed by the Company to offset the intercompany charges understates the depreciation expense reduction resulting from purchase discounts on capital equipment because it is not cumulative. District staff has reviewed the summary and provides the following information: The Company has included intercompany charges totaling $275,000 in the 1993 rate application for services obtained from its corporate and regional offices. In the absence of verifiable supporting documentation, the Board of Directors has previously indicated that the supportability of intercompany charges would be separately reviewed whenever claimed, and evidence of measurable and offsetting expense reductions would be required. The Company contends that offsetting expense reductions have been realized in purchase discounts and lower insurance premiums because of more favorable terms obtained through the corporate programs. Purchase discounts lower the cost of capital equipment and the related depreciation expense. As the lower cost of equipment purchased in a particular year reduces depreciation expense over the useful life of the equipment, the annual economic benefit is calculated based on current, as well as, the prior years' discounted cost of equipment purchases. The summary presented by District staff at the Board workshop included an understated depreciation expense reduction amount in 1992 only, which was based on the Company's figure. District staff concurs that the al110unt was understated by $54,000 and that the depreciation expense reduction amount should be increased from $78,000 to $132,000. The summary, as corrected, is presented on Attachment V, and shows total offsetting expense reductions for lower depreciation expense and insurance premiums of $390,000, which exceed the $275,000 of intercompany charges. The District staff analysis presented the rate adjustment calculated on the basis of the $275,000 of intercompany charges being totally included, or totally excluded, from allowable expenses. 1302B-7/91 -,.-.------~'--,.'''_._~,._---_._~"...._._".._....'''''._-_.,-^'--~_._---,-_._---~'_._-_...._. CONDUCT PUBLIC HEARINGS TO CONSIDER THE APPLICATIONS FOR REFUSE COLLECTION RATE INCREASES SUBMITTED BY VALLEY WASTE MANAGEMENT AND ORINDA-MORAGA DISPOSAL SERVICE, INC. EFFECTIVE JANUARY 1, 1993 SUBJECT PAGE DATE 3 OF 18 December 14, 1992 District staff believes that intercompany charges should be approved at no more than the $250,000 level, and perhaps slightly less, based upon the following considerations: . Offsetting expense reductions have exceeded the intercompany charges in each of the prior three rate-setting periods in which intercompany charges have been approved by the Board. . Intercompany charges have been approved at the $250,000 level for the immediate two prior rate-setting periods. . While the intercompany charges are being reviewed on the basis of offsetting expense reductions, it is recognized that certain incremental expenses are incurred because of the corporate and regional office hierarchy. . In view of present economic conditions in the state, the Board is apt to exercise a conservative attitude regarding intercompany charges, which lack the customary supporting documentation required for operating expenses. If intercompany charges of $225,000 were approved, the rate effect on a single can service would be a $.10 per month reduction. Issue: The 10-Year High Quality Corporate Bond Rate Should Be A Twelve Month Averaae Rate The Company asserts that the rate used for 1993 of 6.53 percent should be a higher rate based on a twelve month average. District staff recommends use of the 6.53 percent rate, which is the rate used by the Company in its rate application. When the Capital Use Charge was initiated with the conversion to the current method of calculating the increase in refuse collection rates in 1990-1991, the Company obtained approval to use the rate for the 10-year High Quality Corporate Bond, instead of the 2-Year Treasury Note originally proposed by District staff. The latest available rate at the time the refuse collection rate application was prepared was used as the basis for computing the forecasted Capital Use Charge for the ensuing rate year. The calculation of the actual Capital Use Charge at the end of the rate-setting year for purposes of determining the status of the Balancing Account is made on the basis of the average rate over a twelve month period. Therefore, use of the 6.53 percent rate is consistent with the method established last year and is appropriate. 13026-7/91 CONDUCT PUBLIC HEARINGS TO CONSIDER THE APPLICATIONS FOR REFUSE COLLECTION RATE INCREASES SUBMITTED BY VALLEY WASTE MANAGEMENT AND ORINDA-MORAGA DISPOSAL SERVICE, INC. EFFECTIVE JANUARY 1, 1993 SUBJECT PAGE DATE 4 OF 18 December 14, 1992 The decisions to be made by the Board of Directors in setting Valley Waste Management's refuse collection rates effective January 1, 1993 are summarized on Attachment VI. Included for decision is approval of the letters to be sent to residential customers who have been receiving difficult-to-access special service because of topography, but were being charged the lower regular collection rates; this matter was reviewed at the October 1, 1992 Board Meeting, at which the Board authorized adjustment of the collection rates coincident with the January 1, 1993 rate-setting, and directed the Company to prepare the notification letters for its approval. The draft letter for residents in the Company's service area, excluding the City of Lafayette, is shown on Attachment VII, and the letter for Lafayette residents is shown on Attachment VIII. Orinda-Moraga Disposal Service. Inc. Issue: The 1992 Revenue and Expense Balancing Account Should Be Fully Applied to 1 993 Collection Rates The Company's shortfall in operating income in 1991 of $118,000 and the projected shortfall in 1992 of $486,000, primarily due to underrealization of revenues, have caused a deterioration in the ability to meet current payment obligations. The total shortfall as of December 31, 1992 of $604,000, which comprises the 1 992 Balancing Account, is requested to be fully recovered in the 1993 collection rates, instead of over two years, as recommended by District staff . District staff recommends the application of half of the 1992 Balancing Account of $604,000 to 1993 collection rates for the following reasons: . The application of the 1992 Balancing Account places a surcharge on 1 993 collection rates. If the increase in operating expenses in 1994 over 1993 is less than the Balancing Account amount applied as a surcharge, a decrease in rates would be necessary in 1 994. Operating expenses increased by $387,000 between 1993 and 1992. . The Percent Increase In Revenue Required computed by District staff before application of the 1992 Balancing Account is 13.76 percent. Full application of the entire Balancing Account would require a further increase of 11 .33 percent, and result in a combined increase of 25.09 percent; this significant rate increase is likely to be followed by a rate decrease the following year. An increase of this magnitude in 1993 would be ill-advised. Interest would be paid on the 1992 Balancing Account amount that was not recovered through the 1993 collection rates. 13028-7/91 -----,----- CONDUCT PUBLIC HEARINGS TO CONSIDER THE APPLICATIONS FOR REFUSE COLLECTION RATE INCREASES SUBMITTED BY VALLEY WASTE MANAGEMENT AND ORINDA-MORAGA DISPOSAL SERVICE, INC. EFFECTIVE JANUARY 1, 1993 SUBJECT PAGE DATE 5 18 OF December 14, 1992 Issue: Leaal Fees Related to the Acme Closure Lawsuit Should Not Be Imoounded The Company contends that legal fees should be approved as a necessary expense to defend the Company against the Acme lawsuit. The impounding of the legal fees would be inappropriate, as it would be unfair to hold the Company solely responsible for legal fees arising from a normal disposal service provided to its customers. District staff recommends allowing legal fees related to the Acme lawsuit to be included in the collection rates, but that the amounts be remitted to the District for control in an impound account for the following reason: . There are sufficient uncertainties regarding the reasonableness of the forecasted legal expense in 1993 of $130,000 to defend the Company, and whether the agreement of sale for the Company obligates the former owner to provide the defense. These uncertainties, and other issues related to the appropriate apportionment of legal expenses for a common defense of municipal defendants, will require additional time to resolve and will be submitted for consideration by the Board in 1993. In the interval, the legal expense funds should be maintained by the District in an impound account. Issue: Leased Capital Assets Should Not Be Adjusted To A Purchase Basis By Replacing Lease Exoense With Deoreciation Exoense The Company's current financial condition makes it impossible to borrow to acquire capital equipment, and it has been forced to lease instead. The lease expense should be approved as allowable for rate-setting, instead of being replaced by the depreciation expense on the equipment. District staff recommends continuation of the long-standing practice that ratepayers not be required to pay for more than the cost of capital equipment used in providing service, where the cost is charged over the life of the asset in the form of depreciation expense. Consistent with the capitalizing of such leases, the cost of leased equipment is included in the Net Tangible Fixed Asset base in computing the Capital Use Charge. The decisions to be made by the Board of Directors in setting Orinda-Moraga Disposal Service, Inc.'s refuse collection rates effective January 1, 1993 are summarized on Attachment IX. 1302B-7/91 -,-------.-- CONDUCT PUBLIC HEARINGS TO CONSIDER THE APPLICATIONS FOR REFUSE COLLECTION RATE INCREASES SUBMITTED BY VALLEY WASTE MANAGEMENT AND ORINDA-MORAGA DISPOSAL SERVICE, INC. EFFECTIVE JANUARY 1, 1993 SUBJECT PAGE DATE 6 18 OF December 14, 1992 Notices of the public hearings were published in the Contra Costa Times, San Ramon Valley Times, Contra Costa Sun, and Tri Valley Herald on November 25, 1992 and December 7, 1992; the notices will also be published in the four newspapers on December 16, 1992. RECOMMENDATION: Conduct public hearings on December 17, 1992 to consider the applications for rate increases submitted by Valley Waste Management and Orinda-Moraga Disposal ServiCe, Inc., and establish their refuse collection rates effective January 1, 1993; the structure of the rate-setting process is provided on Attachments VI and IX. 1302B-7/91 I ....-........ -..-------.---------.--.------------- Attachment I WRITTEN COMMENTS FROM TOWN OF DANVILLE A draft copy of the Danville Town Council's. comments was received by District staff. However, as the Town Council will consider the draft letter at the Council Meeting on December 15, 1992, a final letter was not available for Position Paper distribution to the District's Board of Directors on December 14, 1992. A representative from the Town of Danville will present the Town Council's comments for the Board's consideration at the December 17, 1992 public hearing. ADS/PosPaper#1/GarRate.Dan December 16, 1992 Mr. Parke Bonysteele, President and Members of the Board of Directors Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 SUBJECT: VALLEY WASTE MANAGEMENT RATE PROPOSAL Dear Mr. Bonysteele: On behalf of the Danville Town Council, thank you for the opportunity to comment on Valley Waste Management rate proposal to be considered at the December 17, 1992 Public Hearing. As you know, since your staffs review, the Contra Costa Board of Supervisors has acted on Acme's most recent application for a rate increase, by actually decreasing the rates by $1.12 per ton to $75.97 and disallowing Acme's request of $5.92 per ton for closure and post-closure expenses. Our comments are on the remaining issues. Regarding inter-company charges, we recognize the appropriateness of allowing inter- company charges. We will accept the decision of your Board regarding this matter. We have some concerns about spreading the 6.26 percent increase required to balance the account over two years. In order to balance the revenue and expense balancing account, we believe that the interests of our rate payers are better served by paying as they go. Therefore, we support applying the expenses to the 1993 rate year only. As we are likely to face other increases for the 1994 rate year, we would not like to have that increase compounded by deferring obligations from 1992. And finally, concerning the method used for determining allowable profit, we prefer the current method. We believe that quality and cost of service should be considered in determining allowable profit. We will accept the modification factors selected by your Board. 510 La Gonda Way . Danville, California 94526-1740 (510) 820-6337 Mr. Parke Bonysteele, President December 16, 1992 Page Two Again, thank you for the opportunity to comment on these issues. Sincerely, 1,k AA '-. ~.~~~ Mike Shimansky Mayor MS:rf cc: Town Council Mr. George Sipel, Town Manager Mr. Caluha Barnes, Asst. to the Town Manager Mr. Paul Morsen, CCCSD Deputy General Manager Chron /Pile Q:\COMMON\LVWASTE.MS Attachment II WRITTEN COMMENTS FROM CITY OF LAFAYETTE The City Manager advised District staff that written comments would be submitted on December 14, 1992, following the City Council's Meeting on December 13, 1992. However, District staff was notified on December 14 that written comments will not be submitted in time for Position Paper distribution to the District's Board of Directors on December 14, 1992. A member of the Lafayette City Council will present the Council's comments for the Board's consideration at the December 17, 1992 public hearing. ADS/PosPaper# 1 /GarRate.Laf Attachment I II 26 orinda way . onnda . california 94563 . 415' 254-3900 December 11, 1992 Board of Directors Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553-4392 ~~(C~n~~[Q) DEe 14 1992 CCCSD SECRETARY OF THE DISTRICT Dear Directors: Thank you, on behalf of the City ofOrinda and the City Council, for ensuring that we have the opportunity to contribute comments during Central San's consideration of the Orinda-Moraga Dispose-All, Inc. rate increase application. The materials you provided to keep us appraised of the rate application and analysis were very informative and helpful in our discussion concerning this matter. The City Council considered the rate increase application during its regularly scheduled meeting of December 8, 1992. The collective reaction of the Council was one of great concern that Orinda-Moraga Dispose-all should propose such a large rate increase. The residents of the City of Orinda already pay the highest waste collection rates in the County. To consider paying another 25+ percent (in addition to the 6.92% increase granted just six months ago) is not acceptable. The Orinda City Council spoke with one voice in its opposition to the proposed rate increase, and we urge your similarly strong opposition to this proposal. Again, thank you for ensuring our inclusion in the rate increase application review, and we look forward to Central San's determination in this matter. Sincerely, ~/I~) ~tel William J. Dabel Mayor --.---" --'-~---"--'-'-'-',-_._'~._-------~-"-'--~---~'~'-r'-"_.~-_.~_.._----_._-->.._--,--"..~_."-_._-,..- -.... -_.- ----...-.-.,- 26 orinda way . orinda . california 94563 . 415.254-3900 December 11, 1992 Board of Directors Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553-4392 lR1~teIEO'W~1Q) DEe 14 1992 CCCSD SECRETARY OF THE DISTRICT Dear Directors: Thank you, on behalf of the City of Orinda and the City Council, for ensuring that we have the opportunity to contribute comments during Central San's consideration of the Orinda-Moraga Dispose-All, Inc. rate increase application. The materials you provided to keep us appraised of the rate application and analysis were very informative and helpful in our discussion concerning this matter. The City Council considered the rate increase application during its regularly scheduled meeting of December 8, 1992. The collective reaction of the Council was one of great concern that Orinda-Moraga Dispose-all should propose such a large rate increase. The residents of the City of Orinda already pay the highest waste collection rates in the County. To consider paying another 25+ percent (in addition to the 6.92% increase granted just six months ago) is not acceptable. The Orinda City Council spoke with one voice in its opposition to the proposed rate increase, and we urge your similarly strong opposition to this proposal. Again, thank you for ensuring our inclusion in the rate increase application review, and we look forward to Central San's determination in this matter. Sincerely, ~;~I William J. Dabel Mayor I --------------------------------------- - ---- Attachment IV KISER LAW CORPORATION 1320 ....ARBOR BAY PARKWAY, SUITE 241 ATTORNEYS AT LAW ALAMEDA, CALIFORNIA 94501 TELEPHONE (SIO) 748-6990 FACSIMILE (510) 748-6988 RANDALL L. KISER MARSHA S. BARR December 2, 1992 William Dalton Member of the Board of Directors Central Contra Costa Sanitary District Dear Mr. Dalton: This firm represents Orinda Moraga Dispose-All. We will be making a presentation to the Board during the upcoming rate workshop and hearings. We felt that it will be beneficial to have our comments summarized in advance. They are as follows: Balancing Account. The staff will recommend that the balancing account be spread over more than one year. This causes Orinda Moraga a great deal of concern. The company has been operating at a deficit for the past year due to the large ($486,000.00) revenue shortfall. While controllable expenses are down, the small size of the "allowable profit" ($200,000.00) in relation to the revenue shortfall results in a large operating deficit. In short, Orinda Moraga needs this money to pay its bills now. Legal Fees. The Acme lawsuit concerns us all, and we need to defend ourselves. The company is being sued because it hauled garbage generated by and on behalf of the citizens of Orinda and Moraga to Acme Landfill. It seems unfair to ask that the company be solely responsible for these legal fees when it provided a service for its customers and did not profit from the landfill. We consider the impound account inappropriate. Leases. Capital equipment is required on an on-going basis to provide service. Because Orinda Moraga's current financial condition makes it impossible to borrow the money needed to acquire this capital equipment, it has been forced to lease instead of purchase the equipment. This financial reality must be reflected in the rate structure. ,--------'------'-'----------'------,. Page 2 December 2, 1992 William Dalton Thank you for your time and consideration in this matter. Sincerely, -~---- -- Randall Kiser cc: John Clausen Barbara Hockett Mario Menesini Sue Rainey . ----.-----.--,-.--.-------.--------.----.-----------------------.------.--. Attachment V Intercompany Charges VALLEY WASTE MANAGEMENT ~ .1i8i 1990. 1m ~ DISCOUNTS CLAIMED ON CAPITAL ACQUISITIONS $ 92,000 93,000 93,000 140,000 392,000 CAPITAL USE CHARGE SAVINGS DUE TO DISCOUNTS 16,000 20,000 34,000 DEPRECIATION EXPENSE REDUCTION RESULTING FROM PURCHASE DISCOUNTS $ 12,000 24,000 36,000 54,000 132,000 CLAIMED REDUCTION IN INSURANCE EXPENSE 200,000 400,000 312,000 278,000 224,000 ADDITIONAL ITEMIZED SERVICES PROVIDED BY WMI 81 ,000 TOTAL $ 212,000 424,000 364,000 433,000 390,000 CLAIMED $ 352,000 232,000 311,000 250,000 APPROVED $ - 232,000 250,000 250,000 2 __~'~_""_'___"_'_~_M'~_"_'_'__"____'_'~___'____"___.____",'" - Attachment VI VALLEY WASTE MANAGEMENT DECISION POINTS January 1, 1993 Rate-Setting Exoense - Related . Disposal Expense If a mid-year disposal fee increase, or decrease, occurs in 1993, determine whether a mid-year collection rate adjustment needs to be made Determine the allowability of the Contra Costa County fees included in the disposal fee Direct that continued efforts be made to obtain alternative disposal sites . Closure Costs Allow collection of legal expense related to the Acme lawsuit on an impound basis . Revenue and Expense Balancing Account Determine whether the Balancing Account should be fully applied in 1993, or over 1 993 and 1994 . Intercompany Charges of $275,000 Allow intercompany charges at no more than the $250,000 level, and perhaps slightly less Consider the Company's request to index the intercompany charges using an annual inflation rate . Automated Residential Collection Implement nonautomated separate green waste collection in the City of Lafayette . Request to Restructure Drop Box Rates Increase drop box rates only by the across-the-board rate increase ----------------------------------------------,-..-----._-------------------------------- ._--------------------- ------------ . Allowable Profit Calculation The present rate-setting methodology should be continued . Draft Letters for Difficult-to-Access Customers Approve draft letters for issuance Profit - Related . Quality of Service Determine whether the modification factor of 1.00 is appropriate . Cost of Service Determine whether the modification factor of 1 .00 is appropriate ADS/Po sPa per # 1 /GarRate. VWM ----------------------- ---------------------------------------------r------ Attachment VI I SERVICE AREA, EXCLUDING CITY OF LAFAYETTE January, 1993 Dear Customer, Valley Waste Management recently completed an audit in your neighborhood to detennlne If billing rates are consistent with service received. According to our audit. your home Is not currently being charged for the type of seNice you are receiving. Your home is in a difficult-to-access area that requires a special, small truck to service It. The cost for this type of service Is greater than regular garbage plck-up. The Central Contra Costa Sanitary District, your garbage franchisor, has set the one-can rate for this type of service at $_. This rate inoludes a _" increase which became effective January I, 1993. Your garbage/recycling service Includes: · One (1) 32-gallon can of household trash (excluding dirt, rock, cement and toxic or flammable matanals such as paint, gas, oil, hot ashes, etc.) which may be placed in your yard as long as the container is accessible to our garbage haulers. · Two (2) 32-gallon cans of garden trimmings picked up at the end of your driveway (on the main road). Household trash may not be mixed with the garden trimmings. · Three (3) general"clean-ups" per year. At each clean-up, you may dispose of up to 2 cubic yards of trash, or 12 cans/bundles worth. You will be sent a postcard with .specific information prior to your next scheduled clean-up. All articles must be' in disposable 'containers placed at the end of your drIveway (on the -mainW road) the night before. Garbage can. cannot be returned. Prunings must be tied and under 5 feet In length. · Recycling pick-up of aluminum and tin cans, glass bottles and jars, newspaper, and plastio PETE and HOPE ~ottles. Recyclable Items must be placed in the appropriate stackable contaJners and brought down to the end of your driveway (on the mal" road) . Your next 'bl-monthly bill will reflect the dlfficult-to-access rate required for your area. If you have any questions about your bill, the difficult-ta-access rate, or where you should place yard waste, recyclables or clean-up debris, please do not hesitate to contact our customer service PAGE 1 OF 5 BOARD MEETING OF December 17, 1992 NO. 8. BIDS AND AWARDS a. DATE SUBJECT AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO MONTEREY MECHANICAL COMPANY, INC. FOR THE SLUDGE STABILIZATION PROJECT (DP 20098) December 11, 1992 TYPE OF ACTION AUTHORIZE AWARD Assistant INITIATING DEPT.lDIV. Engineering Department/ Plant En ineerin Division ISSUE: On December 8, 1992, sealed proposals were received and opened for the construction of the Sludge Stabilization Project, District Project No. 20098. The Board of Directors must authorize award of the contract or reject bids within 50 days of the bid opening. BACKGROUND: The District currently operates two multiple-hearth incinerators, which convert dewatered sludge (20 to 25 percent solids) to ash for final disposal in a landfill. In the event of a failure of the incineration system, state and federal regulations require that the dewatered sludge be stabilized to reduce pathogens prior to landfill disposal. The addition of lime slurry and potassium permanganate to condition liquid sludge was successfully pilot tested by the District. The Sludge Stabilization Project will provide a lime slurry system to stabilize the sludge and a potassium permanganate system to control sludge odors. The lime slurry system will consist of a trailer-mounted, portable slaker located on a new concrete pad to the east of the Solids Conditioning Building. Potassium permanganate will be stored in a new 11 ,OOO-gallon fiberglass tank located on an existing concrete pad at the northeast corner of the Solids Conditioning Building. The general, civil, and mechanical plans and specifications were prepared by District staff. Telstar Instruments, Inc. prepared the electrical and instrumentation plans and specifications. The engineer's estimate for the construction of this project was $580,000. Advertising for this project occurred on November 10 and 17, 1992. Six sealed bids ranging from $498,500 to $595,300 were received and publicly opened on December 8, 1992. A summary of bids is shown in Attachment 1. The Plant Engineering Division conducted a technical and commercial review of the bids and determined that the lowest responsible bidder is Monterey Mechanical Company, Inc. for the amount of $498,500. The allocation of funds required to complete this project, as shown in Attachment 2, are $749,000. The Sludge Stabilization Project is included in the 1992-93 Capital Improvement Budget (CIB)/Capitallmprovement Plan (CIP) on pages TP-36 and TP-37. The total project cost RE~EWEDANDRECOMMENDEDFORBOARDAcnON INITIATING DEPT.lDIV. f7f', e . JJ;e- wu fJ!fJ 1302A-7/91 KVA DJC WEB RAB --_.,- .----~------.__.__._--_.-.---.-.'..-..---~,-.-..,'--..--'^~-'---"._-'---'--W"'-'---~---'--"~--""-r-'--"-_...~ SUBJECT ........................................................, ....................... ...............................................................-................... illlllllllllll&1 AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO MONTEREY MECHANICAL COMPANY, INC. FOR THE SLUDGE STABILIZATION PROJECT (DP 20098) PAGE 2 DATE OF 5 December 11, 1992 was estimated to be $1,272,000. The current balance of the Sewer Construction Fund, minus unspent prior authorizations, plus projected dependable revenue, will be adequate to fund this project. A funding summary is presented in Attachment 3. At the time of adoption of the 1992-93 CIB/CIP, the Board of Directors determined that the Sludge Stabilization Project is categorically exempt from California Environmental Quality Act (CEQA) requirements since it involves a minor alteration to an existing sewage treatment plant with little or no expansion of capacity. The District will administer the construction contract and will provide resident engineering, office engineering, and inspection services. Telstar Instruments, Inc. will provide specialized inspection and shop drawing review of the electrical and instrumentation systems. Telstar Instruments, Inc. was selected because it prepared the plans and specifications for these portions of the project and has performed well on previous District projects. A full-scale testing program will be conducted by District staff at system start-up to verify that the sludge stabilization system adequately meets new regulatory requirements. The full spectrum of sludge disposal opportunities available to the District will be identified following completion of the testing program. RECOMMENDATION: Authorize award of a construction contract to Monterey Mechanical Corporation, Inc. in the amount of $498,500 for the Sludge Stabilization Project, District Project No. 20098. 13028-7/91 ---,-.--.--------..-----....-.-.---.-..--.--....--.....-..-....----.----...-- ATTACHMENT 1 Page 3 of 5 SUMMARY OF BIDS PROJECT NO. 20098 - Sludge Stabilization Proiect DATE 12/8/92 LOCATION Martinez. California ENGR.EST. $ 580.000 No. BIDDER BID PRICE (Name. telephone & address) 1 Monterey Mechanical Company, Inc. $ 498,500 8275 San Leandro Street Oakland, CA 94621 (510) 632-3173 2 Albay Construction Co. $ 545,000 865 Howe Road Martinez, CA 94553-0142 (510) 228-5400 3 C. Overaa and Co. $ 546,000 200 Parr Boulevard Richmond, CA 94801 (510) 234-0926 4 Schram Construction, Inc. $ 551,049 31 62 Regional Parkway Santa Rosa, CA 95403 (707) 545-3788 5 Humphrey Construction, Inc. $ 559,000 P.O. Box 907 (206) 488-2400 Woodinville, WA 98072-0907 (510) 229-5820 6 Auburn Constructors, Inc. $ 595,300 730 West Stadium Lane Sacramento, CA 95834-1130 (916) 924-0344 $ $ $ $ $ $ $ BIDS OPENED BY Jovce Murohv DATE 12/8/92 SHEET NO. ...L OF ...L ~_.__._------"._..._,._. '--'-'-'~'-"'----'-~'-~-'" -.------------- ATTACHMENT 2 Page 4 of 5 SLUDGE ST ABILlZA TION PROJECT DISTRICT PROJECT NO. 20098 POST-BID PRECONSTRUCTION ESTIMATE PERCENT OF CONSTRUCTION ITEM DESCRIPTION TOTAL CONTRACT COSTS 1 Construction Contract $ 498,500 2 Contingency (20 percent) 99.700 Subtotal $ 598,200 100.0 3 Construction Management . District Forces Contract Administration $ 1 8,000 3.0 Construction Inspection 32,000 5.4 Surveying 1,000 0.2 Legal 500 0.1 Record Drawings (Including $2,500 8.000 ~ for CAD Software) Subtotal $ 59,500 10.0 . Consu Ita nts/Contra ctors Electrical/Instrumentation (Telstar) $ 7,000 1.2 Material Testing (CMT) 1.500 ~ Subtotal $ 8,500 1.4 . Miscellaneous Plant Engineering Division $ 22,800 3.8 Plant Operations Department 8,500 1.4 Agency Fees 500 ~ Subtotal $ 31,800 5.3 Construction Management Subtotal $ 99,800 16.7 4 Start-Up Testing . District Forces $ 13,000 2.2 . Analytical Laboratory 11,000 1.8 . Sludge Disposal 1 3,000 2.2 . Chemicals 14.000 ~ Subtotal $51,000 8.5 5 Prebid Expenditures . Phase I Design $ 327,000 54.7 . Value Engineering Study 10,000 1.7 . Phase " Design 82.000 ...1ll Subtotal $ 419,000 70.0 6 Total Project Cost $ 1 , 1 68,000 195.3 7 Allocations to Date $ 419,000 8 Additional Allocation Needed $ 749,000 to Complete Project ATTACHMENT 3 SLUDGE STABILIZATION PROJECT DISTRICT PROJECT NO. 20098 PROJECT FUNDING SUMMARY FOR THE PERIOD NOVEMBER 7, 1992 - DECEMBER 9, 1992 Sewer Construction Fund Balance (As of October 31, 1992) Minus Unspent Prior Allocations Plus Dependable Revenue TOTAL ALLOCATION REQUIRED $ 64,007,204 (40,387,490) 19,178,600 42,798,314 $ 749.000 Page 5 of 5 ~ Central ;g~~~ g~~~R~~~g'~~ District PAGE 1 OF 6 POSITION PAPER BOARDMEETINE>~cember 17,1992 ~~flORIZE AWARD OF A CONSTRUCTION CONTRACT TO GELCO SERVICES, INC., AUTHORIZE $944,000 FOR THE COLLECTION SYSTEM PROGRAM CONTINGENCY ACCOUNT AND AUTHORIZE ALLOCATION OF FUNDS FOR THE CURED-IN-PLACE PIPE REHABILITATION PROJECT, DISTRICT PROJECT NO. 4889. NO. 8. BIDS AND AWARDS b. ~6~ember 23, 1992 TYPE OF ACTION AUTHORIZE AWARD AUTHORIZE FUNDS SUBMITTED BY Rey I. Limjoco, Assistant Engineer INITIATING DEPT./DIV. Engineering Department/Infrastructure Division ISSUE: On November 24, 1992, sealed bids for the construction of District Project No. 4889, Cured-in- Place Pipe Rehabilitation Project were opened. The Board of Directors must authorize award of the contract or reject bids within 50 days of the opening of bids. Board approval is required for supplemental authorizations from the Sewer Construction Fund to the Collection System Contingency Account and for allocations from the account over $25,000. BACKGROUND: This project is part of an on-going program to rehabilitate and/or replace deteriorated sewers within the District's service area. The sewers selected for this project are in imminent danger of failure. The project consists of cured-in-place lining of approximately 4,340 lineal feet of existing 18-, 15-, and 6-inch diameter sewers at four sites, Scenic Court, Orchard Road, and Sleepy Hollow in Orinda and Near Court in Walnut Creek. The locations and designations of these sites are shown on Attachment 1. The Near Court sewer is being rehabilitated in two phases. The cured-in-place liner under this project will line approximately 325 linear feet of 18-inch corrugated metal pipe (CMP). A 14-inch high density polyethylene pipe (HOPE) will be used to line approximately 280 linear feet of 18-inch CMP under highway 1-680. (The HOPE liner project is the subject of the next position paper.) The void between the HOPE liner and the 18-inch CMP will be filled with cement. The decision to utilize different rehabilitation technologies for the Near Court sewer is based on engineering analyses which indicated that a more substantial structural solution was required under highway 1-680. The combination of HOPE and cement will meet the structural requirement. The reaches were split into two projects to allow competitive bidding on the HOPE liner portion. Cured-in-Place lining of pipe until recently has been available from one source on the West Coast. New technologies and companies have been developing and are planning to enter the West Coast market place. The District's project is one of the first cured-in-place lining projects competitively bid in the Bay Area with specifications structured to allow companies with emerging technologies to bid. Plans and specifications were prepared jointly by District staff, James M. Montgomery Inc., (JMM) Consulting Engineers, and the Northern California Pipe Users Group of which the District is a member. The project wa~ advertised for bid on November 11 and 18, 1992. The engineer's pre-bid estimate for construction was $677,000. One bid at $768,034 was received from GELCO Services, Inc. on November 24, 1992. Discussions with representatives of GELCO Services, Inc. have identified several areas where the overall cost of this project could be reduced. The discussions to date have produced an indication that the overall cost can be reduced in the neighborhood of $200,000. Due to the laws concerning public bidding, no change order may be formally negotiated and executed prior to an award REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A-9/85 IL PftfJ RAB SUBJECT AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO GELCO SERVICES, INC., AUTHORIZE $944,00 FOR THE COLLECTION SYSTEM PROGRAM CONTINGENCY ACCOUNT AND AUTHORIZE ALLOCATION OF FUNDS FOR THE CURED-IN-PLACE REHABILITATION PROJECT, DISTRICT PROJECT NO. 4889. ................................................................................... 1 lilllllllllllli:llllllil II PAGE 2 OF 6 DATE November 23, 1992 of contract. However District staff has received confirmation that GELCO Services, Inc. is willing to enter into a change order which will substantially reduce the cost of the project. The Engineering Department conducted a technical and commercial evaluation of the bid and concluded that GELCO Services, Inc. is a responsible bidder. A post bid pre-construction estimate of total project costs is presented in Attachment 2. District staff will administer the contract and direct inspection services. JMM will provide resident engineering services. Neither the Scenic Court, Orchard Road, nor Near Court portions of the project were included in the 1992-93 Capital Improvement Budget (CIB). The Scenic Court and Orchard Road portions were identified after the 1992-93 CIB was approved. The Near Court portion has been in the budget for four years. It was inadvertently left off of the 1992-93 CIB even though we have been continuously planning to proceed with this portion. The Sleepy Hollow portion was included in the CIB under the CSOD 1992-93 Collection System Renovation Program (pages CS-57 to CS-59). An allocation of $944,000 from the Collection System Program Contingency Account is needed to complete the project as shown in Attachment 2. Insufficient funds remain in this account to cover the proposed allocation. Therefore, staff recommends a supplemental authorization from the Sewer Construction Fund to the contingency account to cover the allocation. The current balance of the Sewer Construction Fund, minus unspent prior authorizations, plus projected dependable revenue will be adequate to fund this project. A funding summary is presented in Attachment 3. Staff has determined that this project is exempt from the California Environmental Ouality Act (CEOA) under District CEOA Guidelines Section 18.2, since it involves repairs to existing sewage facilities with negligible or no expansion of use. The Board of Director's approval of this project will constitute a finding of agreement with this determination unless otherwise indicated. RECOMMENDATION: Authorize award of contract to GELCO Services, Inc., the lowest responsible bidder, in the amount of $768,034 for the construction of the Cured-in-Place Pipe Rehabilitation Project, District Project No. 4889. Authorize $944,000 from the Sewer Construction Fund to the Collection System Contingency Account and authorize the General Manager-Chief Engineer to allocate these funds for the project. 13028-7/91 ATTACHMENT 1 Q Orinda . e - NEAR CT. Alamo Danville I . Project Location(s) Central Contra Costa Sanitary District Cured-in-Place Pipe Rehabilitation Project Attachment 1 ----------~----------__r__---~--------~- - ....---- --.------- -------- ATTACHMENT 2 CURED-IN-PLACE PIPE REHABILITATION DISTRICT PROJECT NO. 4889 POST-BID/PRECONSTRUCTION ESTIMATE PERCENT OF ESTIMATED CONSTRUCTION ITEM DESCRIPTION TOTAL COST 1. Construction Contract 768,034 2. Contingency at 5 % 37,966 SUBTOTAL 806,000 100 3. Construction Management . Project Management/Administration 24,000 . Inspection 36,000 . Survey 2,000 . Legal 1 ,000 . Field Office Support 500 . Engineering 8,000 . As-builts 2.000 SUBTOTAL 73,500 9.1 4. Consultant Contractors . Resident Engineer (JMM) 18,000 . Material Design (CMT) 2,000 . Technical Support (JMM) 10 .000 SUBTOTAL 30,000 3.7 5. Miscellaneous . Permit/City Inspection 3,000 . Collection System Operations 2,000 . Community Relations 6,000 . Security Guards 6.500 SUBTOTAL 17,500 2.2 ITEM DESCRIPTION TOTAL PERCENT OF ESTIMATED CONSTRUCTION COST 6. Prebid Expenditure . Preconstruction Survey 5,000 . Predesign 35,000 . Design 135.000 SUBTOTAL 175,000 21.7 7. Total Project Cost Estimate 1 ,102,000 136.7 8. Funds Authorized to Date 158,000 9. Total Allocation of Funds Needed to Complete Project 944,000 ATTACHMENT 3 PROJECT FUNDING SUMMARY Sewer Construction Fund Balance $64,007,204 (As of October 31, 1992) Minus Unspent Prior Authorizations (74,389,503) Plus Dependable Revenue 19,178,600 TOTAL 8,796,301 ALLOCATION REQUIRED 944,000 ~ Central ~~~~~ g~~~R~~~ba~~ Jistricl POSITION BOARD MEETING OF December 17, 1992 PAPER SUBJA<iJTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO MANUEL C. JARDIM INC., AND AUTHORIZE ALLOCATION OF $87,000 FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY ACCOUNT FOR THE NEAR COURT SLlPLlNING PROJECT, DISTRICT PROJECT NO. 4535A. SUBMITTED BY Rey I. Limjoco Assistant En ineer PAGE 1 OF 7 NO. 8. BIDS AND AWARDS c. D~vember 30, 1992 TYAlJttfol~~E AWARD AUTHORIZE FUNDS INITIATING DEPT./DIV. Engineering Department/Infrastructure Division ISSUE: On December 9, 1992, sealed bids for the construction of District Project No. 4535A, Near Court Sliplining Project were opened. The Board of Directors must authorize award of the contract or reject bids within 50 days of the opening of bids. Board approval is required for allocations from the Collection System Contingency Account over $25,000. BACKGROUND: This project is part of an on-going program to rehabilitate and/or replace deteriorated sewers within the District's service area. The project consists of sliplining with high density polyethylene pipe (HOPE) approximately 281 lineal feet of existing 18-inch diameter corrugated metal pipe sewer underneath the 1-680 Freeway between Near Court and South Main Street in Walnut Creek. The location of the project area is shown on Attachment 1. Plans and specifications were prepared by District staff. The project was advertised on November 17 and 24, 1992. The Engineer's pre-bid estimate for construction was $49,000. Five (5) bids ranging from $51,356.00 to $59,550.00 were received on December 9, 1992. A summary of bids is presented in Attachment 2. The Engineering Department conducted a technical and commercial evaluation of bids and concluded that the lowest responsible bidder is Manuel C. Jardim, Inc. A post bid pre-construction cost estimate is presented in Attachment 3. District staff will administer the contract and provide inspection services. The Near Court Sliplining Project is not included in the 1992-93 CIB. An allocation of $87,000 from the Collection System Program Contingency Account is needed to complete the project. The current balance of the Sewer Construction Fund, minus unspent prior authorizations, plus projected dependable revenue will be adequate to fund this project. A funding summary is presented in Attachment 4. Staff has determined that this project is exempt from the California Environmental Quality Act (CEQA) under District CECA Guidelines Section 18.2, since it involves repairs to existing sewage facilities with negligible or no expansion of use. The Board of Director's approval of this project will constitute a finding of agreement with this determination unless otherwise indicated. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT/DIV. fhfJ RIL TJP JSM RAB . .-...----...... -..--,.. -...-.-....--_..__._........__... _. .... ....--..-...--..---__....0..._..-.... .........__..._..__._..__._... SUBJECT AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO MANUEL C. JARDIM, INC., AND AUTHORIZE ALLOCATION OF $87,000 FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY ACCOUNT FOR THE NEAR COURT SLlPLlNING PROJECT, DISTRICT PROJECT NO. 4535A. ................................................................................... !:IIIIIIIII:!IIII(I! PAGE DATE 2 OF 7 November 30, 1992 RECOMMENDATION: Authorize award of a contract to Manuel C. Jardim, Inc., the lowest responsible bidder in the amount of $51,356.00 for the construction of the Near Court Sliplining Project, District Project No. 4535A. Authorize the General Manager-Chief Engineer to allocate $87,000 from the Collection System Contingency Account for the project. 1302B-7/91 ~~-------_."~_._-_.~.~'--_.._._-~.._---r-~-'-.--'"..._--_..___,__....___M_._"__~.,_~___..___,..,.,__ ".._.._"_._._..._.~_.._._~___~_______."k__.__.____.__.---".- ATTACHMENT 1 G NEAR CT. Orinda Alamo Danville I · Project Location(s) " Central Contra Costa Sanitary District Near Court/South Main Sliplining Project Attachment 1 . _________..,____~______,__.._.__...__".,_~._ ..._'_.._~_"_.____.._...'~"__H_.__.._.,._-.- .,,___,__~'"..,_._._...__,___..,,_. _ ~ ~__ _ ___ _ _ __ _ __ __ ~ A I I ACHMENT 2 Centra Contra Costa Sanr lry District SUMMARY OF BIDS PROJECT NO. 4535A Near Court Sliplininq Project DATE December 9. 1992 ENGR. EST.~49,000 LOCATION Near Court/South Main Street, Walnut Creek j ; i.. , ~ I - I V BIDDER (Name, telephone & address) BID PAle. 1 Manuel C. Jardim, Inc. ( 510 ) 487.,..04444 $ 34201 Zwissiq Wav. PO Box 677. Union CitY.. CA 94587 51,356 . .. .~ Darcy & Hartv ( 415 ) 586-4000 $ 425 Monterev Blvd., San Francisco. CA 94125 55,200 - . Mountain Cascade, Inc. ( 510 ) 736-8370 $ P. O. Box 116, San Ramon. CA 94583 56,700 Sarott Construction Comoany ( 510 ) 672-7220 $ 3133 Morqan Territorv Rd.. Clayton. CA 94517 59.515 Pacificpjoeline Survev ( 707 ) 446-0427 $ P. O. Box 1000. Vacaville. CA 95696 59.550 ( ) $ { " } "$" ( ) $: ( ) $ ( ) $ ( ) $ ( ) $ 3 4 5 BIDS OPENED BY DATE SHEET NO. OF 2S0J-ll:a4 . ,""-'" ATTACHMENT 3 NEAR COURT SLlPLlNING PROJECT DISTRICT PROJECT NO. 4535A POST-BID/PRECONSTRUCTION ESTIMATE PERCENT OF ESTIMATED CONSTRUCTION ITEM DESCRIPTION TOTAL COST 1. Construction Contract 51,356 2. Contingency at 25 % 12,644 3. Site Preparation 1 0,000 SUBTOTAL 74,000 100.0 4. Construction Management . Project Management/Administration 5,800 . Inspection 7,000 . Survey 500 . Legal 500 . Engineering 2,500 . As-builts 500 SUBTOTAL 16,800 22.7 5. Consultant Contractors . Material Design (CMT) 1.000 SUBTOTAL 1 ,000 1.4 PERCENT OF ESTIMATED CONSTRUCTION ITEM DESCRIPTION TOTAL COST 6. Miscellaneous . Permit/City Inspection 1,500 . Collection System Operations 500 . Community Relations 1 ,000 . Security Guards 2,000 . M isce lIa neous 200 SUBTOTAL 5,200 7.0 7. Prebid Expenditure . Predesign 10,000 13.5 . Design 22,300 30.1 . Right of Way Acquisition 12,700 17.2 SUBTOTAL 45,000 60.8 8. Total Project Cost Estimate 142,000 191.9 9. Funds Authorized to Date 55,000 10. Total Allocation of Funds to Complete 87,000 Project -------r---........-....-------.-.-------.-----.---.-----.----..-..-. ATTACHMENT 4 PROJECT FUNDING SUMMARY Sewer Construction Fund Balance $64,007,204 (As of October 31, 1992) Minus Unspent Prior Authorizations (74,389,503) Plus Dependable Revenue 19,178,600 TOTAL 8,796,301 ALLOCATION REQUIRED 87,000 ~ Central ;g~~~ g~~~R~~~~a~~ Ilistrict PAGE 1 OF 2 POSITION PAPER BOARD MEETING OF December 17,1992 NO. 9. ENGINEERING a. DATE December 8, 1992 SUBJECT AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH JOHN CAROLLO ENGINEERS FOR DESIGN OF THE ORINDA/MORAGA PUMPING STATIONS - WET WEATHER DIESELS PROJECT, DP 4898 TYPE OF ACTION AUTHORIZE AGREEMENT SUBMITTED BY Andrew J. Antkowiak, Assistant Engineer INITIATING DEPT./DIV. ngineering Department/Infrastructure Division ISSUE: Board of Directors' authorization is required for the General Manager-Chief Engineer to execute professional services agreements in amounts greater than $50,000. BACKGROUND: The Pumping Station Master Plan prepared in 1989 identified a need to renovate the Orinda Crossroads and Moraga Pumping Stations. Both pumping stations are over 32 years old and do not have adequate pumping capacity if PG & E power is lost and the single existing diesel engine driven pump at each station is simultaneously out of service. Adequate pumping capacity and reliability are major concerns because both pumping stations are located in East Bay Municipal Utility District (EBMUD) drinking water watershed areas. To improve station reliability and provide adequate wet weather capacity, a second diesel engine- driven pump will be added to each pumping station. The District has already applied for and obtained a construction permit for the new diesel engines from Bay Area Air Quality Management District. The Wet Weather Diesels Project is a part of a phased long term program to rehabilitate the District's existing pumping stations in the EBMUD watershed areas. A phased approach is being utilized to spread the costs of the improvements proposed in the entire program over a 10 to 1 2- year period while still meeting regulatory, reliability, and capacity requirements. The first phase of the program which improves dry weather capacity and safety has been already completed. The design of the second phase, the Wet Weather Diesels Project, will start in December 1992 and is scheduled to be completed by August 1993. The subsequent phases of the program will consist of upgrading the existing electrical systems, replacing the existing dry weather pumps with new, high efficiency pumps and replacement/rehabilitation of existing force mains. An agreement has been negotiated with John Carollo Engineers (JCE) for design services for the new wet weather diesel engines with a cost ceiling of $251,000. JCE was selected because of their satisfactory performance on the first phase of the pumping station improvement program, and their extensive involvement assisting the District in obtaining construction permits for the new diesel engines. The design services include preparation of specifications for fJJB ROGER J. DOLAN REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A-9/85 RAB -----.-.-..-..----... -...............-..-.-... ....--.--...-,.-----..-....-...--......-...........---.....-....-........... ... . SUBJECT AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH JOHN CAROLLO ENGINEERS FOR DESIGN OF THE ORINDA/MORAGA PUMPING STATIONS - WET WEATHER DIESELS PROJECT, DP 4898 POSITION PAPER PAGE DATE 2 OF " Co December 8, 1992 prepurchase of the diesel engines, a seismic evaluation of each station, preparation of plans and specifications for the construction contract, and assistance during the bidding period. Seismic evaluation of the pumping stations has been incorporated into the project to ensure that these stations remain operational after a moderate earthquake. Recommendations from the evaluation may be incorporated into the current project or may be included in one of the future phases, depending on the severity of any deficiencies found. The preliminary estimate of the total project cost is $3,260,000 including a construction cost component of $2,885,000. (This excludes seismic retrofit cost.) The Orinda/Moraga Pumping Station Improvements Project is included in the 1992-93 Capital Improvement Budget on pages CS-53 through CS-56. The project has been evaluated by staff and has been determined to be exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 18.2, since it involves a minor alteration to an existing sewer facility with negligible or no expansion of dry weather capacity. Board of Directors' approval of this project will constitute a finding of agreement with this determination unless otherwise indicated. RECOMMENDATION: Authorize the General Manager-Chief Engineer to execute a cost Reimbursement Agreement with a cost ceiling of $251,000 with John Carollo Engineers for design services related to the Orinda/Moraga Wet Weather Diesels Project, District Project No. 4898. 110?R q.B!!