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HomeMy WebLinkAboutAGENDA BACKUP 03-03-88 . Centrl-Contra Costa Sanitar -District . BOARD OF DIRECTORS PAGE 1 OF 2 POSITION PAPER BOARD MEETING OF Ma rch 3, 1988 NO. IV. BIDS AND AWARDS 1 SUBJECT AUTHORIZE ~ARD OF CONTRACT TO TRANSNATIONAL SERVICES INCORPORATED FOR THE INSTALLATION OF CliECK V & VES IN THE FILTER PLANT BACKWASH PUMPS CliECK VALVE ADDITION, AS PART OF WASTEWATER RECLAMATION, DISTRICT PROJECT NO. 20026 DATE February 26, 1988 TYPE OF ACTION AUTHORIZE AWARD SUBMITTED BY Brian T. Godsey Junior Engineer INITIATING DEPT.lDIV. Plant Operations Department ISSUE: On February 22, 1988, sealed bids for Filter Plant Backwash Pumps Check Valve Addition, as a portion of District Sewer Project No. 20026, were received and opened. The Board of Directors must award a contract or reject proposals within 60 days of the opening of sealed bids. BACKGROUND: A joint Central Contra Costa Sanitary District - Contra Costa Water District project to demonstrate the technical and economic feasibility to reclaim water for use by local industries is now in process. The existing operation of the Filter Plant backwash disturbs the filter media due to air in the backwash pump discharge piping. District staff has determined that the addition of a check valve for each backwash pump will prevent air from entering the discharge pipe and thus el iminate distrubance of the filter media. The check valves will function automatically and provide a better seal than the existing butterfly valves. Sealed bids for the installation of three check valves were received and opened on February 22, 1988. The bid tabulation is attached. The lowest responsible bidder is Transnational Services, Inc. with a bid of $3,564. The estimate for the total project cost is $25,000, a figure that includes prepurchase of project materials ($8,000), project management, project inspection, District force account, contingency, and design. This installation is included as part of the Wastewater Reclamation Project and is a priority item. District staff has concluded that the proposed project will have no significant impact on the environment and has filed a Notice of Exemption. RECOMMENDATION: Authorize award of a contract to Transnational Services, Inc., the lowest responsible bidder for $3,564, for the installation of Filter Plant Backwash Pumps Check Valve Addition, District Sewer Project No. 20026. INITIATING DEPT.lDIV, EVIEWED AND RECOMMENDED FOR BOARD ACTION <5-~/J 130211,9/85 " .- -~~ ~ 0 ~ -'W 0 ;!!! ~ oll: ~ ....r- -t: ..II. 0'\ ...... 5 ,....>~ ,... Q.? I . c; ~ ,!S ,~ ~ v ~ ..w .... -u 0 0 ~ ~ I t z - I Z z: ::Jll: II. ~ ..JW ~!:! 0- Oll: .. 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FOR CONSTRUCTION OF DISTRICT PROJECT NO. 3791, DEWATERING SYSTEM IMPROVEMENTS, AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AMENDMENT WITH JOHN CAROLLO ENGINEERS FOR SERVICES DURING CONSTRUCTION DATE February 29, 1988 TYPE OF ACTION AUTHORIZE AWARD AUTHORIZE AMENDMENT AUTHORIZE POSITION SUBMITTED B1 . Bert . M1chalczyk Senior Engineer INITI~TING. DEPT.lQIV cng1neer1ng Department Engineering Division ISSUE: On February 11, 1988, sealed proposals were received and opened for the construction of District Project No. 3791, Dewatering System Improvements. The Board must authorize award of the contract or reject bids within 60 days of the opening of the proposals. Consulting agreements in excess of $50,000 require Board approval. BACKGROUND: Plans and specifications for the project were completed by John Carollo Engineers and the project was advertised on December 4 and 17, 1987. Nine bids .were received on February 11, 1988. A tabulation of the bids is shown in At tachment 1. The Engineering Department conducted a technical and commercial evaluation of the bids and concluded that the lowest responsible bidder is Dillingham Construction N.A., Inc. of Pleasanton, CA, with a bid price of $5,878,000. The Engineer's Estimate for construction is $5,841,000. The budget to complete this project is $7,574,612, as shown in Attachment 2. The total project cost is anticipated to be $10,338,656. Originally included in the project cost was $450,000 for a Sludge Blending System. During the final stages of the overall project, complications arose with the design of the Sludge Blending System. At that time it was decided to delete the Sludge Blending System from the plans and specifications to avoid delaying the project. The Sludge Blending System will cost from $250,000 to $465,000. This cost is not included in the total project cost estimate identified above. When the Sludge Blending System is finalized, a supplemental authorization will be requested. At that time a decision will be made whether to negotiate a change order with Dillingham or to bid the work as a separate project. Staff will update the Board on the Sludge Blending System when that portion of the work is ready to proceed. John Carollo Engineers (JCE) will provide support services during construction including submittal review, clarifications of the plans and specifications, and will assist in the preparation of the O&M manual, the operator training, and the completion of the as-builts. The work by JCE will be provided through a $302,400 amendment to their existing agreement. INITIATING DEPT./DIV. C y-?1J/ 1302A-9/85 BLM REVIEWED AND RECOMMENDED FOR BOARD ACTION SUBJECT AUTHORIZE AWARD OF A CONTRACT TO DILLINGHAM CONSTRUCTION N.A., INC. FOR CONSTRUCTION OF DISTRICT PROJECT NO. 3791, DEWATERING SYSTEM IMPROVEMENTS, AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AMENDMENT WITH JOHN CAROLLO ENGINEERS FOR SERVICES DURING CONSTRUCTION POSITION PAPER PAGE 2 OF 5 DATE February 29, 1988 The specifications state that the District will witness the centrifuge and cake pump factory tests. This will require a trip to Warminster, PA, for the centrifuges and to Whitebear, MN, for the cake pumps. Funds have been included in the project budget for a half-time clerical position for the anticipated 24-month duration of contract administration activities on the project. Staff intends to request a full-time Secretary 1/11 position in the 1988-1989 Personnel Budget to handle these duties as well as other clerical needs that have arisen as a result of the accelerated District Capital Program. Between now and the beginning of the new District fiscal year, staff intends to use a temporary contract services' secretary to staff the project. The estimated cost for the Dewatering System Improvements Project included in the 1987/1988 Capital Improvement Budget was $9,869,000. The project budget is currently estimated to be $10,338,656, plus an anticipated future allocation of $250,000 to $465,000 for the Sludge Blending System. The increase in expected project costs is due to the following factors: o The delay in project award caused by the Bird protest of the centrifuge qualification process and the subsequent rebid of the centrifuge prepurchase contract. o An increase in the construction schedule from an l8-month to a 21-month period to correct the difficult and possibly expensive construction sequencing which would have been necessary to complete the project in 18 months. o The budgetary figure was derived in the predesign study. Specific project details became fully known only after the design was substantially completed. A description page TP-17. request for a CEQA has been of this project is provided in the Capital Improvement The Fiscal Year 1988-89 Capital Improvement Budget will supplemental authorization to cover the anticipated cost complied with as part of the Stage 5B Expansion. Budget on include a increment. RECOMMENDATION: Authorize award of a contract for construction of District Project No. 3791 to Dillingham Construction N.A., Inc., the lowest responsible bidder. Authorize the General Manager-Chief Engineer to execute a $302,400. amendment with John Carollo Engineers for services during construction. 13028-9/85 ATTACHMENT 1 Page 3 of 5 Centra~Contra Costa Sani~ry District SUMMARY OF BIDS PROJECT NO. 3791 Dewaterinq System Improvements DATE 1/11/88 LOCATION WWTP - Solids Conditioninq Buildinq ENGR. EST. $ 5.841.000 <r W BIDDER (Name, telephone & address) BID PAle. 1 Dillingham Construction N.A.Inc( 415) 463-3300 $ 5,878,000 5960 Inglewood Drive, Pleasanton 94566 Monterey Mechanical Company ( 415) 632-3173 $ 2 8275 San Leandro Street, Oakland 94621 5,964.000 MGM Construction Company ( 415) 685-8812 $ 3 1785 Arnold Industrial Way, Concord 94520 5,997,000 - Homer J. Olsen, Inc. ( 415) 489-1661 $ 4 35500 Olsen Way, Union City 94587 6,063,000 ~ Campbell Construction Company ( 415 ) 785-8910 $ 5 26062 Eden Landing, Hayward 94545 6,134,000 I-- Alan A. Bradford, Inc. ( 707) 437-5484 $ 6 4970 Peabody Road, Fairfield 94533 6,184,000 I-- E.H. r10rrill Company ( 415 ) 845-4100 $ 7 939 Anthony, Berkeley 94710 6,425,000 - Albay Construction Company ( 415 ) 228-5400 $ 8 865 Howe Road, Martinez 94553 6,799,000 - Steve P. Rados, Inc. ( 714 ) 835-4612 $ 9 600 N. Tustin, Santa Ana 92705 7,872,441 - ( ) $ - ( ) $ - ( ) $ PREPARED BY Bert L. Michalczyk DATE 2/11 /88 SHEET NO. OF 1 2503-9/84 ITEM 1. 2. 3. 4. 5. 6. 7. 8. 9. -- Page 4 of 5 ATTACHMENT 2 DEWATERING SYSTEM IMPROVEMENTS DP 3791 POST BID/PRECONSTRUCTION ESTIMATE OF COSTS OUTSIDE DISTRICT % OF CONTRACT FORCES CONST. DESCRIPTION COST COST TOTAL COST Construction Contract Costs a) Construction Contract (As Bid) $5,878,000 b) Mixing System (Future Allocation) c) Estimated Construction Contingency 440,900(A) d) Prepurchased Centrifuges 1 , 59 1 , 04 1 ( B ) e) Plant Operations Department Construction $ 27,000 Total Construction Contracts Cost 7,909,941 27,000 $7,936,941 100 Construction 591,650 267,200 858,850 10.8 Admin. Costs (C) Engineering During 20,000 146,840 166,840 2.1 Construction (D) Facility Startup Costs (E) 105,400 78,000 183,400 2.3 Total Estimate Required to Complete Project 9,146,031 Prebid Expenditures 1,192,625 15.2 Total Project Cost Estimate 10,338,656 Less Funds Previously Authorized (2,764,044) Total Additional Funds Required to Complete Project $7,574,612 (A) Contingency will be used for change orders, force account or engineering assistance as necessary. (B) Previously authorized by the Board of Directors on June 18, 1987. , . Page 5 of 5 ATTACHMENT 2 (Continued) (C) Includes contract administration, construction inspection, support, surveying, legal expense, testing services, and John Engineers' assistance for shop drawing review. clerical Carollo (D) Includes $69,840 previously authorized for installation, structural engineering assistance, coordination. engineering-related to and Plant Operations' (E) Includes O&M manual preparation, training, as-built drawing preparation, and facility start-up and testing. _. CentrL. Contra Costa Sanitar, District BOARD OF DIRECTORS PAGE 1 OF 2 POSITION PAPER BOARD MEETING OF Ma rch 3 1988 NO. V. DATE CONSENT CALENDAR 2 SUBJECT APPROVE AND EXEaJTE GRANT OF EASEMENT AGREEMENT WITH CONTRA COSTA COUNTY, JOB 4417, PARCEL 3, DANVILLE AREA TYPE OF ACTION APPROVE AND EXECUTE EASEMENT AGREEMENT SUBMITTED BY Denni sHall Associate En ineer INITIATING DEPT./DIV. Engineering Department/ Cons ruc io ISSUE: The subject easement is one of three requi red for the offsite sewer system for proposed Subdivision 6806. BAO<GROUND: The offsite sewer system for Subdivision 6806 must cross County property to connect to the trunk sewer on the northeast si de of the former Southern Pacific Rail road Right of Way. The County purchased a portion of the railroad property for use as a future transportation corridor. The County's plans for their property include the possible construction of a light rail commuter service. The terms of the easement agreement are intended to protect the County's projected uses of their land while permitting the sewer installation. The District and the County have executed similar agreements in the past. RECOMMENDATION: Approve and execute Grant of Easement Agreement with Contra Costa County, Job 4417, Parcel 3, authorize the President of the Board of Directors and the Secretary of the District to execute said Grant of Easement and forward said agreement to the County for its action. REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A..9/85 DH JSM RAB r;rNG. ROGER J. DOLAN ~tf f$ INITIATING DEPT./DIV. -- SIrE MAP -..., n".. "'Y...., HA COSTA SANITARY DISTRICT RIGHT of WAY MAP for SEWER - / /' "- 88 ~ I 1-- -i I ',< 58 /t "-.1 I 70 "1- "\/ 11 J - - J I ~ \\ u1 \ 571 II ~ ~ 9 IlLJ I ~ !;; ...J - N.I U)f\l) - - - > I .c; 1~1 56 .~" M 68 '0: . ON '~:Ur55~ ~'/~I~I I"{cl m~ ~ I I 1'1() a C\J - - -I ~ (\1 ~ /"'f/ -. ~~11OIMI2 l<tl ", 1"'- 0::/ 54 Q- (1) - - ~z "'" (1) ~ ~/- _ J -. Q -. 3 I W \. Q / <z/"'-. 53 1 >-1 ~I L4-l-J '" co /\>- "~_1 0:;.>-" W.r,"'- ~- v ( 52 > ~ :::l/}-[-l:I:, . " I.!) ~(\ / I~Z: 5 -- \"Y '( ~ ~..:) _~ '/ .51 l.l 0 II- \~ \ ./ -/ <.) ~ I l..,/ 6 I U) I to ( ~ f ~~Ill. <I r - -l I ~ \1') ~ "...-vA 50 ]I u b:/ 7J .:;j't ";,- 'l ~ ~111)~- '--\ ~ ~ 48 ~I 0 8 I ) . rl) Iye,>~ \ 49 ttJ~ 2:/ l..l f- _ _ r __ ~_j 7' <'~'Oe..J (!l f5 <el, 9 I I ::'l ~ ~"-..... I ~ I:t: C'C If- - ~I I ti) .s{'90os p.o.c.-7f 0 I 5/ ~ I 10' I / ~e ("0/ 28048'36"W 11.1 I 0 - 7 ) J ..... 31.85\, (!\, ( I I . ---:; -. >-n / . 00 '/ j I 14 Q.~I~ig; 112/ I / t\'1~1 ~/~~~/ IV ~ 2~ ~5~~1' / ;1 ~ I V ~ ~I 1;1 pac POINT OF COMMENCING) 1/ I P:O:B: POINT OF BEGINNING }I ~3053'II"E FOSTORIA WAY I / I - -- 7~--h--- SV13lJ. 6806 f.AS~ME.N~ --~ ----- J ......-'., Centrl.. Contra Costa Sanitar) District BOARD OF DIRECTORS PAGE 1 OF 2 POSITION PAPER BOARD MEETING OF M NO. v. CONSENT CALENDAR 3 SUBJECT DATE ADVISE THE BOARD OF THE U-OSE OUT OF THE A-I LINE SOLDIER BEAM INSTALLATION PROJECT IN WALNUT CREEK (DP 14257) AND RETURN $11~886 TO THE COLLECTION SYSTEM PROGRAM CONTINGENCY ACCOUNT F TYPE OF ACTION INFORMATIONAL SUBMITTED BY Thomas A. Trice~ Engineering Assistant INITIA TING DEPT./DIV. Engineering Department/ Construction Division ISSUE: All work has been completed on the A-I Line Soldier Beam Installation Project in Walnut Creek~ and this project can now be closed out. SACKGROUND: This project involved the installation of a row of soldier beams along a portion of the Southern Pacific Railroad Right of Way for the future A-I Line interceptor sewer near the corner of Civic Drive and Ygnacio Valley Road~ Walnut Creek. A plot plan of the project is presented in Exhibit "A". During District review of a proposed three story sports health center with a zero set back alongside the right of way~ it was determined that the clearance between the future pi pe and the new bui 1 di ng foundati on woul d be 1 ess than 10 feet. The 23 soldier beams installed under this project will facilitate the installation of the A-I Line interceptor sewer in the future and will greatly lessen the potential for damage to the building. This project was not included in the Capital Improvement Budget (CIB) since it could not have been anticipated at the time the CIB was prepared. Allocation of funds for the project from the Collection System Program Contingency Account was approved by the Board of Directors when the construction contract was awarded. The contractor~ Pacific Mechanical Corporation (PMC)~ commenced work on November 18, 1987 and completed the work on December 1~ 1987 ahead of the scheduled completion date of December 16~ 1987. The contract work was accepted by the Board of Directors on January 7, 1988. The engineer's estimate for the construction cost was $48,000. PMC's construction contract was for $49,000. The total contract amount paid to PMC was $49~377. One change order for $377 was issued for extra work necessitated by a changed field condition. The contractor had to abandon a partially drilled hole when an unforeseen concrete footing was encountered. The change order compensated the contractor for the additi onal work to drill a new hol e at an al ternate location. The total budget for the project was $65,600. The total completed project cost is $53,714~ which is $11,886 less than the budget. Staff is closing out the project which will result in $1l~886 being returned to the Collection System Program Contingency Account. RECOMMENDATION: This item is presented to the Board of Directors for information. No action is necessary. REVIEWED AND RECOMMENDED FO BOARD ACTION RS~ JSM RAB 11lt{} INITIATING DEPT./DIV. 130:?A..9/85 T/lT TAT 12~ - \ \ 1\\ ~.:~~ ~ \ \\ \\ \\ \ \ \ .l. \\ \\ \ \ \ ~ \\ \\ \ \ \ ~ ~ ~\\ 0 ~ ~ \\ ~ \\ ~ \ ~ Ii" \ \f~~ J ~ ~ ij '''::::...''::::......... \~ \b:~~\\~\ 9 It'~ ~ \ \ It ~ PROPOSED ~ \ \ I; SPORTS HEALTH CENTER~. ~ \ 1\ k SOLDIER BEAM It 785 YGNACIO VALLEY BLVD. ~ ~ \ \ / \ (Typical) It 1~ < \ PROPERTY /F -~ -:;y It j \ ~L1NE SPRR /.r- -'L__ dJ \ \ R/W _. ~__ L_..JC!-- __________________ ~ __ - 0 tr -0 rr- u "'0 -0- "0 -0- ""t)-o- -0 - cr ""t)- CJ""t)- 0" -0 \ -- ----..-- c---: --- .-- - :----:---~ --~-- - ~-- -:-- -:~-~ ~--__;;T~;;;_C;E -/ ________________"\-=--=o- ~----------------------~ ----~~ L--E~~"A~I; T ~--E~~~~~E~- -~===-\~~ ~ <::: c:: ~ a:: a:: a:: Cl. en IJ... o ~ ~ ...J S PRR R!W---...... ----------------------~--------------- - NTS Central Contra Costa Sanitary District ~ SOLDIER BEAM INSTAllATION District Project: 14257 Exhibit A 2/88 2523.1/87 . -, ~ Centr~. Contra Costa Sanltar) District BOARD OF DIRECTORS PAGE 1 OF 3 POSITION PAPER BOARD MEETING OF Ma rch 3 1988 NO. V. CONSENT CALENDAR 4 SUBJECT ADVISE lHE BOARD OF lHE QOSE OUT OF THE LOCAL IMPROVEMENT DISTRICT 56 (LID 56), LA CASA VIA/BRODIA WAY, WALNUT CREEK SEWER CONSTRUCTION PROJECT <DP 4144) DATE INFORMATIONAL Thomas Trice, SUBMITTED BY ~: All work has been completed on the LID 56 Sewer Construction Project, DP 4144, and this project can now be closed out. ~ACKGROUND: Property owners in the La Casa Via/Brodia Way area of Walnut Creek petitioned the District in 1986 to form a Local Improvement District (LID) for the purpose of financing and constructing a publ ic sewer system which would benefit their properties. The sewer project consisted of installing 3,028 lineal feet of 8-inch sanitary sewer pipe, 653 lineal feet of 4-inch sewer lateral pipe, and 10 new standard manholes. This new sewer system provides service to 22 existing and 6 future parcels. The contractor, V and MBackhoe of Pittsburg, commenced work on June 15, 1987, and completed the work on September 10, 1987. The contract completion date was September 10, 1987. The project was accepted by the Board on October 1, 1987. V and M Backhoe's original construction contract was for $166,760. There was one change order issued on the project for the additional equipment and labor required by the contractor to construct a portion of the work which was revised due to conflicts with water and gas lines on the original alignment. The amount of this change order was $952 and the time for completion was extended 10 days from August 31 to September 10, 1987. The total contract amount was further increased by an additional $262.50 because of increases in field measured quantities of bid items paid at contract unit prices. The total contract amount paid to V and M Backhoe was $167,974.50. Funds from Assessment District improvement bonds, direct cash payments from property owners in the LID boundaries, and earnings on retained funds in the account provided $268,704 in revenues. The total cost (expenditures) for this project, including the above construction contract amount, all District expenses, outsi de engi neeri ng, bond counsel, underwriter expense, and bond reserve equal s $247,716, 1 eaving a surpl us of $20,988 through February 15, 1988. A summary of revenues and expenditures is shown on Exhibit A attached. REVIEWED AND RECDMMENDED FDR BOARD ACTION DH RSK INITIATING DEPT.lDIV. 1302A'9/85 7711 TAT IlU( ~l - - SUBJECT POSITION PAPER ADVISE THE BOARD OF THE CLOSE OUT OF THE LOCAL IMPROVEMENT DISTRICT 56 (LID 56), LA CASA VIA/BRODIA WAY, WALNUT CREEK SEWER CONSTRUCTION PROJECT (DP 4144) PAGE DATE 2 OF 3 February 24, 1988 The existing surplus monies will be held by the District for a two year period which commenced on the bond del ivery date of August 3, 1987. This action is required by state law, Section 10427.1 of the Streets and Highways Code. At the termination of the two year period, the Board of Directors will be required to adopt a resol ution, "Resol ution Decl aring Surpl us In Improvement Funds," which will allow the surplus monies and future interest to be returned to each LID participant as a credit upon the assessments levied by the LID. The intent of the above Code Section is to prevent unscrupulous developers from using LID's to finance improvements by estimating the costs of the improvements high and receiving the surpl us funds in cash immediately after final. costs are known. During the two year period, the District may draw upon the surplus funds to reimburse the District for costs attributable to the LID. There are no such future costs known at this time. Staff is proceeding to close out the construction project. Because the project was funded through the LID process, all project expenditures as identified on Exhibit A will be reimbursed from the LID account. The remaining funds at the termination of the two year period will be returned as described above. RECQMMENDATlONS: This item is presented to the Board for information. No action is necessa ry . 13028-9/85 ........ -- EXHIBIT "A" CENTRAL CON1RA OOSTA SANITARY DISlRICT LOCAl I~YEMENT DISlRICT NO. 56 Statement of Revenues and Expenditures through February 15, 1988 REVENUE: Sale of Bonds $ 242,069 Direct Payments from Property Owners 24,300 Earnings (on retained funds in account) 2,335 TOTAL REVENUE $ 268,704 EXPENDITURES: District Plan Review & Construction Services Charges: Pl an review Inspection Soils testing Construction surveying Legal $ 8,092 12,085 1,679 4,504 191 $ 26,551 District Other: CCCSD administration fee Plans & specs (printing cost) Fiscal agency fees Miscellaneous cost of proceedings $ 4,417 250 3,000 253 $ 7,920 Outside Engineering 5,000 Construction Contract 167,975 Bond Counsel 7 ,3 90 Bond Printing 1,411 Bond Discount (Commission on Sale) 7,262 Bond Reserve Total Expenditures 24,207 $ 247,716 S, ,20,988 1_ J_ EXCESS REVENUE OYER EXPENDITURES (SURPlUS FUtIlS) Central ~ontra Costa SanitarY..Jistrict BOARD OF DIRECTORS PAGE 1 OF 4 POSITION PAPER BOARD MEETING OF Ma rch 3, 1988 NO. VIr. SOLID WASTE 1 SUBJECT DATE APPROVE REV ISION TO THE COMPUTATION OF THE ANNUAL FRANCHISE FEE ASSESSED TO FRANCHISED REFUSE COLLECTORS February 24, 1988 TYPE OF ACTION APPROVE REVISED FEE COMPUTATION SUBMITTED BY INITIATING DEPT./DIV. Paul Morsen, Deputy General Manager Admi ni strative ISSUE: A revised method of determining the annual franchise fee amount to be assessed to the District's franchised refuse collectors is proposed. BACKGROUND: The District presently assesses an annual franchise fee to each of the three franchised refuse collectors, which is intended to recover the expense of administering the terms of the franchise agreements. Therefore, the franchise fee is desi gned on an expense recovery concept, and not as a source of general revenues. The franchise fee is passed through to the rate payers directly, that is, it is not part of the profit margin computation of the rate setting process. In recent years, increasing staff effort is being committed to the related, but wider, aspects of solid waste management. Such District activities as staff support to the County Solid Waste Commission, participation on the Regional Recycling Advisory Committee, and invol vement in reviewing the feasibil ity of a sol id waste joint exercise of powers authority are proposed to be included in the franchise fee computati on. Present Franchise Fee Computation The franchise fee is composed of a mlnlmum flat fee of $20,000, plus any payments to third parties directly related to the administration of the franchise agreements. The $20,000 minimum fee is intended to provide for salaries, employee benefits, and administrative overhead of District staff and management directly involved in routine administration of the three franchises. This routine staff effort encompasses rate-setting, resolving customer complaints, coordination with affected cities regarding rate-setting, monitoring compl iance with the franchise terms, and updating franchise zone maps, and includes ordinary staff support by Di strict Counsel. If the mi nimum fee is determi ned to be insufficient to recover the expense of the routine administration of the franchises in any year, it is increased to recover such administrative expenses. Extraordinary staff effort, such as was expended by staff and District Counsel on the renegotiation of the franchise agreements two years ago, is considered to be over and above the minimum flat fee, and is recovered as an incremental amount in the franchise fee computation. Payments to third parties are recovered by incrementing the franchise fee. Recent major third party payments were for reviews of a refuse collector's financial records and of the bases for significant increases in landfill disposal REVIEWED AND RECOMMENDED FOR BOARD ACTION SUBJECT POSITION PAPER APPROVE REV ISION TO THE COMPUTATION OF THE ANNUAL FRANCHISE FEE ASSESSED TO FRANCHISED REFUSE COLLECTORS PAGE 2 OF 4 DATE February 24, 1988 fees conducted by Price Waterhouse, and a review of the franchisees' insurance coverages by a risk management consultant. Third party payments and the expense of extraordinary staff effort are recovered through the franchise fee over a three-year period. Apportionment of the total annual franchise fee to the three refuse collectors is based on their respective numbers of residential customers. The computation of the 1987-1988 franchise fee is shown on Attachment I to illustrate the methodology described above. Revised Franchise Fee Computation District expenses related to the broader area of sol id waste management has increased significantly in recent years. These expenses comprise Board of Directors, staff and management efforts related to activities of the County Solid Waste Commission and the Regional Recycling Advisory Committee, and efforts undertaken to establish a solid waste joint powers authority including services of a consultant to prepare a draft solid waste joint exercise of powers agreement, costs of which have been shared by the District and other publ ic entity participants. The revised franchise fee computation would add the labor, employee benefits, and administrative overhead expenses for all staff and management efforts related to sol id waste activities to the present franchise fee computation. Additionally, expenses of the Board of Directors, District Counsel, and third parties directly incurred on matters involving solid waste management would also be included in the franchise fee computation. The franchise fee will be billed in advance during the first quarter of the fiscal year on an estimated basis. The bill ing for any year will incl ude an adjustment for the difference between the prior fiscal year's estimate and actual expenses based on an annual calculation of the expenses incurred. Attachment II illustrates the revised franchise fee computation. REWMMENDATION: Approve impl ementati on of the rev ised method of determini ng the annual franchise fee amount to be assessed to franchised refuse collectors effective the 1988-1989 fiscal year. --------- 13028-9/85 Employee Adm in. Hours Labor Benefits Overhead Tota 1 - Staff 399 $10,040 $4,442 $3,087 $17,569 Management 69 2,837 1,256 873 4,966 - $12,877 $5,698 $3,960 468 22,535 CENTRAL CONTRA COSTA SANITARY DISTRICT FRANOIISE FEE COM='UTATION FISCAL YEAR 1987-1988 District Labor Charges Related to Franchise Administration: Other Administrative Expenses: Courier Service Court Reporting Service District Counsel: Total Charges Through September 1987 Estimated Routine Legal Services Total Administrative Expenses Franchise Fee Computation: Administrative Expenses Extraordinary Staff Charges and Third Party Payments: Second 1/3 of $33,000 expense of renegotiating franchise agreements Second 1/3 of $8,400 expense of 1986 insurance coverages review Final 1/3 of $12,436 expense of 1985 review of a refuse collector's financial records 1987 Extraordinary Legal and Third Party Payments: District Counsel ([AJ from above) District Share of Price Waterhouse review of landfill disposal fee increase 1987-1988 Franchise Fee Apportionment: Valley Disposal Service Orinda Moraga Disposal Service Pleasant Hill Bay Shore Disposal $23,785 11,000 2,800 4,146 $16,139 5 ,859 $21,998 X 1/3= 7,333 $49,064 $31, 128 12,981 4,955 $49,064 ATTACHMENT I 32 218 17,139 < 1,000> $16,13 9[AJ 250 1,000 $23,785 ,.-..., A TT A(}tMENT I I CENTRAL CONTRA COSTA SANITARY DISTRICT ESTIMATED FRANafISE FEE COtFUTATION FISCAL YEAR 1988-1989 District Labor Charges: Franchise Administration: Employee Adm in. Hours Labor Benefits Overhead Total Staff 400 $10,500 $4,500 $3,200 $18,200 Management 70 3,000 1,300 900 5,200 470 $13 ,500 $5,800 $4,100 23,400 Solid Waste Management: Staff 700 $15,860 $ 7,018 $4,877 27,755 Management 200 8,525 3,772 2,621 14,918 900 $24,385 $10,790 $7,498 42,673 Board of Directors: Estimated Expense for Rate Review and Solid Waste Commission and Regional Advisory Committee attendance 2,400 District Counsel: Total Estimated Charges Estimated Routine Legal Services $8,000 <1,000> $7,000 [AJ 1,000 Total Administrative Expenses $69,473 Estimated Franchise Fee Computation Administrative Expenses Extraordinary Staff Charges and Third Party Payments: Final 1/3 of $33,000 expense of renegotiating franchise agreements Final 1/3 of $8,400 expense of 1986 insurance coverages rev i ew Second 1/3 of 1987 District Counsel and Price Waterhouse charges regarding landfill disposal fee increase 1988 Extraordinary Legal and Third Party Payments: District Counsel ([AJ from above) Outside Counsel District Share of Price Waterhouse review of landfill disposal fee increase District share of Price Waterhouse services related to Solid Waste JPA $69,473 11 ,000 2,800 7,333 $ 7,000 10, 188 6,000 Estimated 1988-1989 Franchise Fee 5,000 ,,~28,188 X 1/3= 9,396 $100,002 Apportionment: Valley Disposal Service Orinda-Moraga Disposal Service Pleasant Hill Bay Shore Disposal $69,301 28,901 1,800 $100,002 . - Central ~ontra Costa Sanitary -..Iistrict BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER BOARD MEETING OF Ma rch 3, 1988 NO. VII 1. LEGAL/LITIGATION 1 SUBJECT DATE REVIEW A ClAIM RECEIVED FROM IAN AND PENELOPE BAIRD OF 89 SLEEPY HOLLOW LANE, ORINDA, CALIFORNIA Februa ry 26, 1988 TYPE OF ACTION REV IEW QAIM SU~ITTED.flY JaCK 1:. Campbell Administrative Operations Manager INITIATING DEPT./DIV. Administrative ISSUE: A cl aim for $26,400 pl us unspeci fied expenses has been received from Mr. & Mrs. Ian Baird of 89 Sleepy Hollow Lane, Orinda. This claim results from a sewage overflow into the Baird home which occurred on October 10, 1987. District procedures require Board action on this claim. BACKGROUND: An overflow occurred into the Baird home during a weekend when they were away, and this delayed the discovery and subsequent clean-up activity. The District has spent over $60,000 repairing damage to the house. The Bairds, with their two children, were provided temporary housing in a local hotel for the two months required to complete the restoration project. It is the staff's position that the Bairds have been reimbursed for their reasonable expenses related to this incident and for their lost personal property. They are now claiming additional expense amounts of $6,400 for loss of use of their home for two months and $20,000 in diminution in value, and other miscellaneous expenses. Mr. Baird has asked to address the Board on this claim, and staff representatives request to meet with the Board in closed session under Government Code Section 54956.9(b) to discuss the position the District is to take regarding this claim. RECOMMENDATION: After hearing Mr. Baird's presentation and the information provided by staff, either allow the claim, deny it, or defer a Board decision pending additional staff action. REVIEWED AND RECOMMENDED FOR BOARD ACTION PM