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HomeMy WebLinkAboutAGENDA BACKUP 02-01-90 . Centra. ~ontra Costa Sanitary .Jistrict BOARD OF DIRECTORS PAGE 1 OF 2 POSITION PAPER BOARD MEETING OF February 1, 1990 NO. III. CONSENT CALENDAR 5 SUBJECT QUITCLAIM SEWER EASEMENT TO DAVID E. GARRETT AND RANDI L. GARRETT, JOB 1562, ORINDA AREA DATE January 24, 1990 TYPE OF ACTION APPROVE QUITCLAIM OF EASEMENT SUBMITTED BY Denn1 sHall Assistant Engineer INI.IIATING DEPT.lDIV. engineering Department/ Construction Division ISSUE: The Garretts have requested the District to quitclaim the subject easement. BACKGROUND: The subject easement was granted to the District at no cost in 1949. It is one of several lot line easements created to serve properties within the subdivisions known as Hacienda del Or1nda Units No.1 and No.2. The Garretts have comb1 ned two lots and constructed a house over the subj ect easement. The1 r bank will not finance the sale of the home until the easement is eliminated. District records indicate that this easement was never used for sewer purposes. All of the parcels of land in the vicinity of the subject easement are served by public sewers located in roadways or public sewer easements. The subject easement is not needed for District purposes and may now be quitclaimed. The owner has paid the District's processing fee. This project has been evaluated by staff and determined to be exempt from the Cal1forn1 a Env1 ronmental Quality Act (CEQA) under D1 str1 ct CEnA Gu1 deli nes Section 18.6, since it involves a minor alteration in land use limitations. RECOMMENDATION: Approve Quitcl aim Deed to Dav1 d E. Garrett and Rand1 L. Garrett, Job 1562, 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 DH JSM RAB INITIATING DEPT.lDIV. 1<01( 1302A-9/85 70 QUITCLAIM EASEMENT Job 1562 Orinda Area . Central Contra Costa Sanitary Oistrict BOARD OF DIRECTORS PAGE 1 OF 2 POSITION PAPER BOARD MEETING OF Februar I, 1990 NO. III. CONSENT CALENDAR 6 SUBJECT DATE ACCEPT THE CONlRACT WORK FOR THE lREATMENT PLANT LANDSCAPING, PHASE I PROJECT (DISlRICT PROJECT 10031A) AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION J an u a r 19, 1990 TYPE OF ACTION ACCEPT CONlRACT WORK SUBMITTED BY Munawar Husain Associate En ineer INITIATING DEPT./DIV. Engineering Department/ Construction Division ISSUE: Constructi on has been compl eted on the Treatment Pl ant Landscapi ng, Phase I Project and the work is now ready for acceptance. BACKGROUND: The contract work included providing the District Treatment Plant (see Attachment A). wall, lighting, a pond with fountain, turf irrigation system using reclaimed water. landscaping at the main entry to The landscaping included a sign areas, trees, shrubs, and an The contract was awarded to the lowest responsible bidder, Consolidated Landscape Services, Inc., of Livermore on May 4, 1989, by the District Board. Consolidated Landscaping Services was issued a Notice to Proceed on June 12,1989. The original contract completion date was December 10, 1989. All work has been substantially completed by the Contractor and beneficial use of the new facility was obtained on January 12, 1990. Appropriate time extensions were negotiated with the Contractor as a result of change orders, extra work, and related issues. It is appropriate to accept the contract work at this time. A detailed accounting of the proj ect costs will be provi ded to the Boa rd at the time of proj ect close out. RECOMMENDATION: Accept the contract work for the Treatment Pl ant Landscapi ng, Phase I Project (District Project 10031A) and authorize the filing of the Notice of Compl eti on. RSK JSM RAB REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A-9/85 '// MH ~L PfIil INITIATING DEPT.lDIV. -~ J ~/--_. / ( '" j. ~'~ 1/ '~ '",,- ' I ~ ' II '~~,~,~" .-/ r ~ TREATMENT PLANT LANDSCAPING, PHASE I o / I / . . I I I t I . I I . I I I I I ''\. '", '''','', ~- "', "\. ''', "\., "'--" '" "\. '''\., '\., \ \ \ . \ \ \ \ \ \ \ \ \ ) I I \- + Central Contra Costa Sanitary DIstrict Treatment Plant Landscaping, Phase I ( D P 10031 A ) Attachment A 2523-9/88 . Centra. ':ontra Costa Sanitar) Jistrict BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER BOARD MEETING OF Februar 1, 1990 NO. III. CONSENT CALENDAR 7 SUBJECT ADVISE lHE BOARD OF ClOSEOUT OF THE SULFUR DIOXIDE FACILITY IMPROVEMENTS PROJECT, DISTRICT PROJ ECT NO. 10030, AND RETURN $2,965 TO lHE TREATMENT PlANT PROORAM DATE January 26, 1990 TYPE OF ACTION INFORMATIONAL SUBMITTED BY David J. Reindl Assistant En ineer INITIATING DEPT.lDIV. Plant Operations Department ISSUE: All work has been compl eted on the constructi on of the Sul fur Di oxi de Facil ity Improvement Project, District Project No. 10030. BACKGROUND: The sulfur dioxide facility provides sulfur dioxide solution for the dechlorination of plant effluent. This project provided for the installation of additional dechlorination equipment to help control occurrences where chlorine residual of the treatment plant's final effluent exceeded current allowable National Pollutant Discharge Elimination System (NPDES) permit limits of 0.0 mg/l. This project provided for the addition of two 6,000 pounds per day sulfur dioxide liquid evaporators and one additional sulfonator providing equipment redundancy and an increase in dechlorination capacity of the existing facility. The equipment was prepurchased directly from Wallace and Tiernan Corporation in order to match existing equipment and to remain compatible with the treatment plant's chlorine and sulfur dioxide gas injection systems. Project construction was accomplished by using both outside electrical and mechanical contractors for equipment installation, as well as District forces for instrumentation and controls. The total budget for the Sulfur Dioxide Facility Improvements Project is $100,000. The completed project cost is $97,035. Staff is closing out the project, which will result in $2,965 being returned to the Treatment Plant Program. RECXM4ENDATION: This item is presented to the Board of Di rectors for information only. No action is necessary. COMMENDED FOR BOARD ACTION 1302A-9/85 . Central Contra Costa Sanitary District BOARD OF DIRECTORS PAGE OF RECEIVE lHE 1989-1990 OPERATIONS AND MAINTENANCE BUOOET REVIEW FOR lHE SIX MONlHS ENDED DECEM3ER 31, 1989 NO. VII. BUDGET AND FINANCE 1 DATi' January 25, 1990 POSITION PAPER BOARD MEETI~Bruary 1, 1990 SUBJECT TYPR€cffi~13uoo ET REVIEW SUBMITTED BY Walter N. Funasaki, Finance Officer INITtA TtNG DEPT :DIV Administrative/Finance & Accounting ISSUE: A report of the resul ts of a comparative review of actual and budgeted Operations and Maintenance (O&M) revenues and expenses for the first six months of the 1989-1990 fiscal year is provided in this Position Paper. B~ROUND: A comparison of actual and budgeted District O&M revenues and expenses for the six months ended December 31, 1989, and projected revenues and expenses for the fiscal year ending June 30, 1990 is summarized below: Six Months Ended ~r 31, 1989 Variance Favorable <Unfavorable> Actual ~ hnount-L fiscal Year Ending June 30, 1990 Variance Favorable <Unfavorable> Pro1 ected ~ ~ount -L Revenues I Sewer Service Charges $ 8,491,393 8,525,150 < 33,757> < .3> $16,561,200 16,543,900 17 ,300 0.1 City of Concord 910,335 968,000 < 57,665> < 5.9> 4,035,000 4,130,000 <95,000> <2.3> Other 782.641 866.001 < 83 .360> <.-.2..&> 1.625 ,852 1.769,852 <144,000> <8.1> Total Revenues 10,184,369 10,359,151 <~> <...L2.> 22.222,052 22.443,752 <221,700> <1.0> Expenses I A<inlnlstratlve 1,782.855 1.859.223 76,368 4.1 3,669,954 3,695,230 25,276 0.7 Engineering 1,468,213 1,511,139 42,926 2.8 3,134,432 3,198.613 64,181 2.0 Collection System Oper. 1,708.461 1,891.519 183 ,058 9.7 3,828,472 3,896 ,087 67.615 1.7 Plant Operations 5,558,409 5,884,383 325,974 5.5 11,629,443 11,614,204 <15.239> <0.1> Pumping Stations 656 .883 633 .37 4 <~> < M> 1.280.102 1.226.610 <53 .492> <!d> Total Expenses 11.174.821 11.779.638 ~ ~ 23 .542.403 23.630.735 88.332 Q.d. Operating Deficit S 990 .452 1.420 .487 430,035 1.320.351 1.186 .983 <133.368> < 1.6l,> Reserves-End of Year (BegInnIng of Year Reserves as of June 30.1989 Is $.4.604.466) $ 3,284,115 Based on the results of the first six months of the 1989-1990 fiscal year, prOjections have been made of revenues and expenses for the full fiscal year. District revenues are projected to total $22,222,052 for the fiscal year, which are $221,700 or 1.0%, lower than budgeted revenues of $22,443,752. 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 1. District expenses are projected to be $23,542,403 for the fiscal year, which are less than budgeted expenses of $23,630,735 by $88,332, or 0.4%. 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. RECOMMENDATION: Receive the 1989-1990 Operations and Maintenance Budget Review for the six months ended December 31, 1989, and provide comments and guidance to District staff. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIA TING DEPT/DIV. 1302A - 9/85 ATTAGlMENT I cemw. CXJII'mA OOSTA SNlITMY DISTRICT REYEtaJE ACCOUIlT YMIMCE ElCPlNlAnONS FOR 1HE SIX D1HS ElIDED DECBBER 31. 1989 All) FISCAL. 'rEM ENDIII6 J_ 30. 19!1O Six Months Ended o.c.ber 31. 1989 Fiscal Year EJtdtna J_ 30. 1990 Yarlllnce Variance Favorable <Unfavorable> Favorable <unfavorable> Revenue Account 51!!l1. b.!!9!1 1m2!!!!.1 .....L- ProJ ected Il!!!!s!1 l!!2!!!!! -L Sewer Service 17 .300 0.1 Charge (1) S 8,491,393 8,525 ,150 <33,757> < .3> 16,561.200 16,543,900 Service Charges - 4,035,000 4.130,000 <95,000> <2.3> Concord (2) 910,335 968,000 <57,665> < 5.9> House Connection <34,000> <23 .6> Inspecection (3) 54,945 75,197 <20,252> <36.9> 110.000 144.000 Main Lines Inspection (4) 121,542 110,312 11 ,230 10.2 187 .000 187 ,000 0 Plan Review (5) 78,381 63,076 15 ,3 05 24.3 130.000 130,000 0 . Septic Tank Dwnping (6) 46,102 55,783 <9,681> <17.4> 100.000 130,000 <30.000> <23.1> Franchise Fees (7) 177,315 125.000 52,315 41.9 177,315 125 ,000 52,315 41.9 Abanclol1llent F..s (8) 9,010 49.998 <40.988> <81.9> 20.000 100.000 <8(),000> <80.0> Interest In~e (9) 159.854 225 .000 <65.146> <28.9> 490.000 550.000 <60.000> <10.9> 10.048.877 10,197.516 <148.639> <1.5> 21.810.515 22,039.900 <229.385> <1.0> All Other Accounts 135."92 161.635 <2fi.U3> <16.2> 411.537 403.852 7.685 1.9 Total Revenues $10.184.360 10.359.151 <17".782> < 1.6> 22.222.052 22.443.752 <221.700> <1.0> Variance Explanations: (1) Sewer Service D'larges for the first six month period were $33,757 less than budget primarily as a result of an underrealization of $30,935 in the fi rst hal f County-collected service charges. These revenues are proj ected to exceed budget for the fi sca 1 year by $17,300 primarily due to higher revenues from direct-billed accounts and counter collection. (2) Service D'larges-COncord were $57,665 less than budget for the fi rst si x month peri od; the payment recorded in the fi rst si x 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 $95,000 less than budget primarily as a result of a lower than budgeted flow factor for the City of Concord. (3) House Connection Inspection revenues were $20,252 less than budget for the fi rst si x month peri od primarily due to a lower rate of housi ng starts than was anti ci pated. Projected revenues for the fiscal year are $34,000 less than budget as a result of the continued effect of the underrealization in the first six months. Page 2 of 15 (4) Main Lines Inspection revenues for the first six month period were $11,230 higher than budget primarily due to a higher volume of fees from several medium-sized subdivisions. However, as there are fewer main line projects currently under re",iew than anticipated, it is projected that revenues for the fiscal year will not exceed, but be equivalent to, budget. (5) Plan Review revenues were $15,305 higher than budget for the first six month period and reflect the same revenue trend as for Main Line Inspection. As fewer main line projects are under current preliminary r~view than anticipated, it is projected that revenues for the fiscal year will not exceed, but be equivalent to, budget. (6) Septic Tank D~ping revenues were $9,681 less than budget for the first six month period primarily due to a lower than anticipated nl.blber of waste loads delivered for trea1ment. Projected revenues for the fiscal year are $30,000 less than budget as a result of the continued trend of the first six months. (7) Franchise Fees are billed to franchised refuse collectors annually in the first six month period based on a projection of District expenses to admi ni ster the franch ise agreements. The fees exceed budget by $52,315, reflecting the higher than anticipated administrative expenses incurred related to refuse collection rate-setting, recycling, solid waste disposal, and other solid waste issues. (8) Abando..ent Fees revenues were $40,988 less than budget for the first six month period primarily because of a lower nunber of abandonment permits issued than anticipated, a number of refunds as a resul t of the abandoned 1 ateral subsequently bei ng reused, and a lower than anticipated fee increase. Projected revenues for the fiscal year are $80,000 less than budget as a result of the continued trend of the first six months. (9) Interest InCODe is $65,146 less than budget for the first six month peri od primarily due to lower than anti ci pated average interest rates. Projected interest income for the fiscal year is $60,000 less than budget because of the anticipated realization of budgeted interest income during the last half of the fiscal year. Page 3 of 15 ATTAOtJENT II CBmW. CXINlRA COSTA SANITARY DISlRIcr SUllARY OF AClUAI... MD BUDGETED OIN EXPENSES BY DPEIISE CATE&ClRY FOR 1HE SIX IIlIIlHS EMlED IlECEIIJER 31. 1_ MD lItE FISCIIL ~ Ell)IIIi .JUlIE 30. 19l1O Six *Mbs Enclllcl n-r-har 31. 1989 Ft_1 Yeu EAdtna .J_ 30. 1990 Varfance Vufance ExDen58 ClIteaorv .&i1IIll. favorable <Unfavorable> favorable <Unfavorable> JllL!IsI1 .&121m! -L. Pro.f ec:ted I!Wl!i .Elm! -L. Labor and Eltployee Benef fts m S 8.185,546 8,377 ,197 191,651 2.3 17 .021,495 17 ,122.473 100,978 0.6 utflftf 85 (2) 1.410,500 1,633,699 223,199 13.7 2,891.219 3.126,203 234.984 7.5 Ch_ f cals (3) 750,068 722.653 <27 ,415> < 3.7> 1,329,516 1,269,516 <60,000> <4.7> All 01:h er 2.348.349 2.557.773 209.424 8.2 S .269.050 5.074.630 <194.420> <3.8> Tota 1 Df strf ct Expenses 12,694 ,463 13 .291,322 5116,859 4.5 26,511,211> 26,592,822 81,542 0.3 Tota 1 ClIpf ta ltzed expenses <1.519,643> <1.511.684> 7,959 < .4> <2.968.877> <2.962.087> 6.790 0.2 Net Dfstrfct Expen58S SI1.174.820 11.779.638 604.818 5.1 23 .542.403 23.630.735 88.332 0.4 Variance Explanations: (1) Labor and &lployee Benefits: The favorable variances of $191,651 for the six month period, and $100,978 projected for the fiscal year are primarlly the result of unfilled authorized job positions in the Administrative and Engineering departments. (2) Utl1ities: The fayorable variances of $223,199 for the six month period, and $234,984 projected for the fiscal year are primarily the result of the following causes within the Plant Operations Department: lower electrical usage produced by shutting down gas-driven auxlliary boilers for maintenance without need to operate the standby el ectrically driven blower, lower el ectrical rates. than anticipated, and reduced landfill gas usage as a result of process control adj ustments to the furnace operati ons and the limited use of the furnace afterburner. (3) a._icals: The unfavorable variances of $27,415 for the six month period, and $60,000 proj ected for the fiscal year are primarlly the resul t of greater than anticipated use of lime and polymer in the treatment process because of the delay in the completion of the Dewatering System Improvement Project to the last half of the fiscal year, and a higher level of chemical treatment at pumping stations for odor and sulfide control due to low flow volume. Page 4 of 15 ATTAQ-lMENT III CENTRAL OONTRA COSTA SANITARY DISTRICT EXPENSE ACCOUNT VARIANCE EXPLANATIONS FOR lHE SIX MONlHS ENDED DECEM3ER 31, 1989 ADMINISTRATIVE DEPARTMENT Six Months Review: Operations and maintenance expenses for the six months ended December 31, 1989 totaled $1,782,856 and were $76,367 less than budgeted expenses of $1,859,223. The 4.1% underexpenditure is primarily the result of the following expense account variances: Salaries and Wages and related employee benefits expenses of $1,077,525 are $51,302 less than budgeted expenses of $1,128,827 for the six month period primarily as a result of an unfilled position in Finance and Accounting, and a period of time when a Secretarial Support position was unfilled as a result of an unanticipated termi nati on. These accounts are proj ected to be $22,418 underexpended for the fi sca 1 year. Directors' Fees and Expenses of $14,406 are $3,594 less than budgeted expenses of $18,000 for the six month period primarily because of a lower than anti ci pated number of conferences attended by Board members. This account is projected to be $2,200 underexpended for the fiscal year. Outside Repairs and Maintenance expense of $25,993 is $6,925 less than budgeted expense of $32,918 for the six month period primarily due to deferri ng the repl acement of the ai r diffusers in the Fi rst Floor inspectors' area to the second half of the fiscal year. This account is projected to be equivalent to budget for the fiscal year. Professional Services expense of $22,635 is $10,335 less than budgeted expense of $32,970 for the si x month peri od primari ly because charges for the Price Waterhouse review of a refuse collection rate application anticipated to be recorded in this fiscal year were recorded in the fiscal year ended June 30, 1989. This account is projected to be $5,500 underexpended for the fiscal year. legal Services-Board expense of $13,149 is $7,051 less than budgeted expense of $20,200 for the six month period primarily due to a lower than anticipated incidence of Board-level issues requiring legal opi ni on. SSS/Pos.Papers#l/*6Mo O&M Bud, p 7 Page 5 of 15 This account is projected to be $10,000 underexpended for the fiscal year. Legal Services-Staff expense of $53,771 is $27,121 higher than budgeted expense of $26,650 for the six month period primarily as a result of a greater than anticipated need for legal services related to the following matters: negotiations with the City of Richmond regarding the use of the Richmond landfill; labor relations services related to appeals and arbitrations; and review of employee benefit plans in view of Internal Revenue Code changes. The legal expenses incurred regarding the use of the Richmond landfill will be recovered by inclusion in the franchise fee billed to the District's franchised refuse collectors. This account is projected to be $20,000 overexpended for the fiscal year. Reprographic Services expense of $32,905 is $17 ,315 higher than budgeted expense of $15,590 for the six month period primarily beca use of a greater th an anti ci pa ted n umber of p ri nti ng requirements, including recycling brochures, records management labels, and CASA directory and glossary; CASA reimburses the District for materials used, and the printing expense of recycl ing brochures will be recovered through recycling grant funds and the franchise fees billed to the District's franchised refuse collectors. This account is projected to be $5,000 overexpended for the fiscal yea r . Bindery Services, Press and CaIIera 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 Reprographic Unit for other departments, or are chargeabl e to capi tal proj ects. Such apporti onment of expenses, plus labor and benefits, are recorded in the user department's Reprographic Services expense account or to capi tal project accounts; the account which is used to offset such chargeouts within the Administrative Department is the Reprographic Chargeouts account. Bindery Services expense of $9,639 is $7,643 higher than budgeted expense of $1,996 and Press and CaIIera Services expense of $22,792 is $11,292 higher than budgeted expense of $11,500 for the six month peri ode The combi ned overexpendi ture of $18,935 for both accounts is primarily the result of a greater number of printing requirements than anticipated. The Bindery Services and Press and CaIIera Services accounts are projected to be $27,000 overexpended for the fiscal year; as a resul t, the Reprographic Chargeouts account is proj ected to be $32,500 overrealized for the fiscal year. Technical Training, Conference, and Meeting expense of $6,722 is $7,398 less than budgeted expense of $14,120 for the six month period primarily because the District-sponsored supervision and Page 6 of 15 communication workshops and management education program were rescheduled to the second half of the fiscal year. This account is projected to be $1,300 underexpended for the fiscal year. For all other individual departmental expense accounts, the actual expense for the si x month peri od di d not vary more than $6,500 of budgeted expense. The cumul ative net vari ance between actual and budgeted expenses for all these accounts for the fiscal year is proj ected to be $3,358 underexpended. Fi sca 1 Year Proj ecti on: The Administrative Department's operations and maintenance expenses are projected to be $25,276 underexpended for the fiscal year ending June 30, 1990, as a result of: underexpenditures in Salaries and Wages and rel ated employee benefits of $22,418, Di rectors' Fees and Expenses of $2,200, Professional Services of $5,500, Legal Services-Board of $10,000, and Technical Training, Conferences, and Meetings of $1,300; an overreal ization of $32,500 in Reprographic Chargeouts; overexpenditures in Legal Services-Staff of $20,000, Reprographic Services of $5,000, Bi ndery Services and Press and Camera Services of $27,000; and the cumulative net variance between actual and budgeted expense for all other accounts of $3,358 underexpended. ENGINEERING DEPARTMENT Six Months Review: Operations and maintenance expenses for the six months ended December 31, 1989 totaled $1,468,213 and were $42,926 less than budgeted expenses of $1,511,139. The 2.8 percent underexpenditure is primarily the result of the following expense account variances: Salaries and Wages and related employee benefits expense of $2,335,878 is $60,942 less than budgeted expenses of $2,396,820 for the six month period primarily because of a lower employee benefit charge and unfilled staff positions. These accounts are projected to be $146,887 underexpended for the fiscal year. Legal Services-Staff expense of $39,739 is $16,774 hi gher than budgeted expense of $22,965 for the si x month peri od primarily as a result of a greater than anticipated requirement for legal services related to the following matters: Irrevocable Offers of Dedication; improving General Conditions in the District's Standard Specifications; standardizing District contracts; ash haul ing and disposal in Colusa County; and the emergency sludge agreement with Vallejo Sanitary District. This account is projected to be $24,260 overexpended for the fiscal year. Page 7 of 15 Technical Services expense of $66,414 is $17,734 less than budgeted expense of $84,148 for the six month period primarily because of the deferral of certain projects to the second half of the fiscal year. The current underexpenditure is projected to revert in the balance of the fiscal year to an overexpenditure due to unfilled staff positions and the consequent use of temporary agency personnel. This account is projected to be $28,650 overexpended for the fiscal year. Capitalized Salaries and Wages and related capitalized expenses of $1,068,284 are $27,590 less than budgeted capital ized expenses of $1,095,874 for the six month period primarily due to lower than budgeted employee benefit charges capitalized. These accounts are proj ected to be $17,612 underreal ized for the fiscal year. For all other individual depart.ental 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 proj ected to be $12,184 overexpended. Fiscal Year Projection: The Engi neeri ng Department's operati ons and mai ntenance expenses are projected to be $64,181 underexpended for the fiscal year ending June 30, 1990. The underexpenditure is projected to result from an under- expenditure in Salaries and Wages and related employee benefits of $146,887, offset by overexpenditures in Legal Services-Staff of $24,260 and Technical Services of $28,650, and underrealization of Capitalized Salaries and Wages and related capitalized expenses of $17,612; a $12,184 overexpenditure is projected in all other expense accounts. COLLECTION SYSTEM OPERATIONS DEPARlMENT Six Months Review: Operations and maintenance expenses for the six months ended December 31, 1989 totaled $1,708,461, and were $183,058 less than budgeted expenses of $1,891,519. The 9.7% underexpenditure is primarily the result of the following expense account variances: Salaries and Wages and related employee benefits expenses of $1,436,202 are $15,385 less than budgeted expenses of $1,451,587 for the six month period primarily because of lower than budgeted employee benefits charges, offset by an $8,289 overexpendi ture in Salaries and Wages due to greater than anticipated overtime work for maj or emergenci es and an increased preventi ve mai ntenance effort. The greater level of overtime work is projected to extend into the second half of the fiscal year. Page 8 of 15 These accounts are proj ected to be $72,350 overexpended for the fiscal year. Outsfde Vehfcle and Equipment Repafr- expense of $23,158 is $15,208 high er th an bu dgeted expense of $7,950 for th e si x month peri od primari ly as a resul t of the unanti ci pated repl acement of a drive train and pump for a 1983 Vactor truck. Due to other known major repairs to vehicles required in the second half of the fiscal year, this account is projected to exceed budget for the fiscal year. This account is projected to be $30,300 overexpended for the fiscal year. Outsfde Repafr-s and Maintenance expense of $51,729 is $102,429 less than budgeted expense of $154,158 for the six month period primarily because of a lower than anticipated effort on construction activity and a concentration of effort in sewer cleaning, which requires less final paving; additionally, the chemical root control program has been postponed. This account is projected to be $120,100 underexpended for the fiscal year. Janftor-fal and Refuse Removal expense of $6,054 is $6,942 less than budgeted expense of $12,996 for the si x month peri od primarily due to lower than anticipated quantities of construction debris required to be hauled to the landfill. This account is projected to be $9,000 underexpended for the fiscal yea r . Spofls Removal expense of $ 0 is $6,996 less than budgeted expense of $6,996 for the six month period primarily because the haul ing of constructi on spoi 1 s from the Wal nut Creek faci 1 ity was deferred to the second half of the fiscal year. This account is projected to be $4,000 overexpended for the fiscal year. Technfcal Ser-vfces expense of $71,997 is $39,391 higher than budgeted expense of $32,586 for the si x month peri od primarily as a resul t of greater than anti ci pated use of temporary agency workers necessitated by two disabled employees and unfilled staff positions. This account is projected to be $38,000 overexpended for the fiscal year. Gasolfne. Oil and Fuel expense of $29,203 is $8,093 less than budgeted expense of $37,296 for the si x month peri od primarily as a result of lower than anticipated price increases for gasol ine and diesel fuel. This account is projected to be $8,200 underexpended for the fiscal year. Page 9 of 15 Opera~ing Supplies expense of $161,175 is $47,763 less than budgeted expense of $208,938 for the six month period primarily as a result of the lower lever of construction effort described previously and the deferral of the purchase of root control chemical. This account is projected to be $65,000 underexpended for the fiscal year. Capitalized Salaries and Wages and rela~d capitalized accoun~ of $189,716 are $38,906 higher than budgeted capitalized accounts of $150,810 for the si x month peri od primarily because of a greater concentration of capital project activity occurring during the first half of the fiscal year than was anticipated. These accounts are projected to be equivalent to budget for the fiscal year. For all other individual departaen~al accoun~, the actual expense for the six month period did not vary more than $4,500 from budgeted expense. The cumul ative net vari ance between actual and budgeted expenses for all these accounts for the fiscal year is projected to be $9,956 underexpended. Fiscal Year Projection: The Collection System Operations Department's operations and maintenance expenses are proj ected to be $67,606 underexpended for the fiscal year ending June 30, 1990, as a result of: underexpenditures in Outside Repairs and Maintenance of $120,100, Janitorial and Refuse Removal of $9,000, Gasoline, Oil and Fuel of $8,200, and Operating Supplies of $65,000; overexpendi tures in Sa 1 ari es and Wages and rel ated employee benefits of $72,350, Outside Vehicle and Equipment Repair of $30,300, Spoils Removal of $4,000, and Technical Services of $38,000; a $9,956 underexpenditure is projected in all other expense accounts. PLANT OPERATIONS DEPARlMENT Six Months Review: Operations and maintenance expenses for the six months ended December 31, 1989 totaled $5,558,410, and were $325,973 less than budgeted expenses of $5,884,383. The 5.5% underexpenditure is primarily the result of the following expense account variances: Salaries and Wages and rela~d ~ployee benef1~ expenses of $3,055,905 are $48,494 less than budgeted expenses of $3,104,399 for the six month period primarily because of: lower than budgeted employee benefits expense charges; filling a nllJlber of positions later than anticipated; and offset by a higher than budgeted compensated absence expense caused by an unanticipated retirement. These accounts are projected to be $11,284 underexpended for the fiscal year. Page 10 of 15 Lime expense of $176,007 is $15,707 higher than budgeted expense of $160,300 for the six month period primarily because of sl ightly greater usage necessary in the primary sedimentation tanks to maintain process parameters for ph levels. However, because of a delay in the completion of the Dewatering System Improvement Project to the last half of the fiscal year, greater than budgeted lime use in January and February will be required. This account is projected to be $50,000 overexpended for the fiscal year. Polymer expense of $231,111 is $21,611 higher than budgeted expense of $209,500 for the six month period primarily because of greater polymer usage required in the operation of the existing centrifuges before thei r repl acement th rough the Dewateri ng System Improvement Project. Because of the delay in the completion of the dewatering project to the last half of the fiscal year, the current overexpenditure is projected to increase sl ightly by the end of the fiscal year. This account is projected to be $32,000 overexpended for the fiscal year. Sulphur Dioxide expense of $81,418 is $18,962 less than budgeted expense of $100,380 for the six month period primarily as a result of lower usage of sulphur dioxide required to neutralize chlorine used in effluent treatment. The lower usage is the result of close control of the chlorine-to-sulphur dioxide ratio and lower flow volume. Lower sulphur dioxide usage is projected to continue during the second half of the fiscal year. This account is projected to be $35,000 underexpended for the fiscal year. Electrical expense of $660,855 is $102,757 less than budgeted expense of $763,612 for the six month period primarily as a result of a lower electrical usage produced by shutting down gas-driven aUxiliary boilers for maintenance without need to operate the standby electrically-driven blower, and actual electrical rates bei ng sl ightly less than rates used for budgeti ng. Because of the need to operate two furnaces during the test phase of the dewatering proj ect, the current underexpendi ture is proj ected to decrease by the end of the fiscal year. This account is projected to be $70,000 underexpended for the fiscal year. Natural Gas expense of $156,825 is $23,112 less than budgeted expense of $179,937 for the six month period primarily because of low i nfl uent flow vol umes and the resul ti ng lower th an anti ci pated run times required for the main pump engines. The current underexpenditure is projected to continue through the end of the fiscal year, based on a resumption of normal flow volumes during the second half of the fiscal year. Page 11 of 15 This account is projected to be $25,000 underexpended for the fiscal year. Landfill Gas expense of $380,114 is $86,401 less than budgeted expense of $466,545 for the six month period primarily due to reduced landfill gas usage as a result of process control adj ustments to the furnace operati ons and the 1 imi ted use of the furnace afterburner which were recommended by the Inci nerator Rx consulting firm. Reduced landfill gas usage is projected to continue through the end of the fiscal year. This account is projected to be $140,000 underexpended for the fiscal year. General Repairs and Maintenance expense of $239,820 is $53,352 1 ess than budgeted expense of $293,172 for the six month period primarily because of a del ay in the purchase of repl acement parts for a primary tank to the second half of the fiscal year. This account is projected to be equivalent to budget for the fiscal yea r . Outside Repairs and Maintenance expense of $110,362 is $16,278 less than budgeted expense of $126,640 for the six month period primarily due to the deferral of 1 arge pai nti ng and repai r proj ects for the Solids Conditioning and Chemical Feed buildings to the second half of the fiscal year. This account is projected to be equivalent to budget for the fiscal year. eo.puter Maintenance expense of $16,234 is $7,766 less than budgeted expense of $24,000 for the si x month peri od primarily due to the deferral of the purchase of replacement parts and maintenance work for the process control computer to the second hal f of the fiscal yea r. This account is projected to be equivalent to budget for the fiscal year. Sludge REllloval expense of $6,710 is $5,210 higher than budgeted expense of $1,500 for the six month period primarily as a result of several tests of sl udge treatment methods that requi red off-si te hauling. The contingency provision in the $65,750 annual budgeted amount for furnace problems or process upsets which may necessitate sludge hauling is not anticipated to be required. This account is projected to be $50,000 underexpended for the fiscal yea r . Grit Removal expense of $25,727 is $18,673 less than budgeted expense of $44,400 for the six month period primarily as a result of a lower frequency of hauls required than anticipated. The current underexpenditure is projected to continue through the end of the Page 12 of 15 fiscal year because haul frequency will increase in the second half of the fiscal year during primary tank cleaning, and higher hauling charges are likely. This account is projected to be $19,000 underexpended for the fiscal year. Technical Services expense of $98,543 is $4,542 less than budgeted expense of $103,085 for the six month period; however, this account will be overexpended to a major extent for the fiscal year as a result of newly imposed regulatory requirements for control and monitoring of toxicity levels. The most significant of these is the testing and reporting required by N3 2588, The Air Toxics "Hot Spots" Information and Assessment Act of 1987. The annual budgeted expense of $196,165 is projected to be overexpended by $253,835 as a direct result of designing and implementing the required monitoring program and associated laboratory tests. Safety Supplies expense of $11,867 is $1,941 higher than budgeted expense of $9,926 for the si x month peri od as a resul t of the purchase of safety supply items for the Plant Laboratory identified in a safety review by the workers compensation insurer. This account is projected to be $2,000 overexpended for the fiscal year. Capitalfzed Salaries and Wages and related capitalized expenses of $164,693 are $35,023 less than budgeted capitazlized expenses of $199,716 for the six month period primarily because of the delay in the startup of the Dewateri ng System Improvement proj ect and the desi gn of several pl ant capi tal proj ects. The current underreal izati on in these accounts will increase sl i ghtly th rough the end of the fiscal year. These capi ta 1 ized Sal ari es and Wages and employee benefit accounts are project to be $36,000 underrealized for the fiscal year. Fi sca 1 Year Pro'; ecti on: The Plant Operations Department's operations and maintenance expenses are projected to be $15,239 overexpended for the fiscal year ending June 30, 1990, as a result of the following account variances: Page 13 of 15 Underexpended <Overexpended> Salaries and Wages and related employee benefits Lime Polymer Sulphur Dioxide Electrical Natural Gas Landfill Gas Sl udge Removal Gri t Removal Technical Services Saf ety Supp 1 i es Capitalized Salaries and Wages and related capitalized expenses All other expenses, net Total $ 11 ,284 <50,000> <32,000> 35,000 70,000 25,000 140,000 50,000 19,000 <253,835> <2,000> <36,000> 8,312 $ <15,239> PUMPING STATIONS Six Months Review: Operations and maintenance expenses for the six months ended December 31, 1989 totaled $656,884, and were $23,510 higher than budgeted expenses of $633,374. The 3.6% overexpendi ture is primarily the resul t of the following expense account variances: Salaries and Wages and related employee benefits expenses of $280,037 are $15,527 less than budgeted expenses of $295,564 for the six month period because of lower than budgeted employee benefits charges and the effect of a promotion occurring later than anticipated. These accounts are proj ected to be $4,023 underexpended for the fiscal year. Other Chemicals expense of $114,324 is $20,701 higher than budgeted expense of $93,623 for the si x month peri od primarily because of greater than anti ci pated chemical treatment for odor and sul fi de control required due to low flow volume. This account is projected to be $25,000 overexpended for the fiscal yea r . Electrical expense of $116,497 is $7,904 less than budgeted expense of $124,401 for the six month period primarily because of lower electrical usage due to low flow volume. This account is projected to be equivalent to budget for the fiscal yea r. Page 14 of 15 Outside Repairs and Maintenance expense of $102,166 is $50,106 higher than budgeted expense of $52,060 for the six month period primarily because of an emergency force mai n repai r at Moraga Pump Stati on. This account is projected to be $55,000 overexpended for the fiscal year. Rents and Leases expense of $2,743 is $10,505 less than budgeted expense of $13 ,248 for the si x month peri od primarily because provisi on for the use of a rental power generator to temporarily replace a diesel-driven pump during a major repair was not required. This account is projected to be $14,000 underexpended for the fiscal year. Capitalized Salaries and Wages and related capitalized expenses of $12,358 is $4,246 higher than budgeted capital ized expenses of $8,112 for the si x month peri od primarily because of a greater than anticipated number of labor hours expended on Pump Station capital p roj ects. These capitalized expense accounts are projected to be $9,212 overrealized for the fiscal year. For all other individual Pumping Stations accounts, the actual expense for the six month period did not vary more than $7,100 of budgeted expense. The cumul ative net vari ance between actual and budgeted expenses for all these accounts for the fiscal year is proj ected to be $727 overexpended. Fi sca 1 Year Proj ecti on: The Pumpi ng Stati ons' operati ons and mai ntenance expenses are proj ected to be $53,492 overexpended for the fiscal year ending June 30, 1990, as a result of: overexpenditures in Other Chemicals of $25,000 and Outside Repairs and Maintenance of $55,000; underexpenditures in Salaries and Wages and rel ated employee benefits of $4,023 and Rents and eases of $14,000; overrealization in Capitalized Salaries and Wages and related capitalized expenses of $9,212; and a net overexpenditure of $727 in all other accounts. Page 15 of 15