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HomeMy WebLinkAboutAGENDA BACKUP 05-05-83 Central Contra Costa Sanitary District BOARD OF DIRECTORS NO. IV-l POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE April 26, 1983 TYPE OF ACTION SUBJECT CONDUCT PUBLIC HEARING TO CONSIDER APPLICATION FOR REFUSE COLLECTION RATE INCREASE PUBLIC HEARING SUBMITTED BY Walter Funasaki INITIATING DEPT./DIV. Administrative ISSUE: A public hearing is to be held on May 5, 1983 to consider an appl ication by Orinda-Moraga Disposal Service, Inc. to increase its refuse collection rates in Zones 1 (Orinda) and 1A (Moraga). BACKGROUND: At the April 21, 1983 Board Meeting, the Board of Directors scheduled a publ ic hearing on May 5, 1983 to consider Orinda-Moraga Disposal Service, Inc. IS rate increase appl ication. Publ ic notices have been scheduled for publication in two newspapers of general circulation during the two weeks preceding the public hearing date in compliance with statutory requirements. RECOMMENDATION: Conduct a publ ic hearing on Orinda-Moraga Disposal Service, Inc. 's refuse collection rate increase appl ication on May 5, 1983, and determine appropriate rate schedules and implementation dates. REVIEWED AND RECOMMENDED FOR BOARD ACTION :&C?l:::::> WF ANALYSIS OF ORINDA-MORAGA DISPOSAL SERVICE, INC. RATE INCREASE APPLICATION Orinda-Moraga Disposal Service, Inc. (Orinda-Moraga) submitted its appli- cation for refuse collection rate increases on March 24, 1983. The rate increase of 12.3% which has been applied for is requested to be made effective lias soon as possib1e". Orinda-Moraga was last granted a 10.1% rate increase effective April 1, 1981. District staff has performed an analysis of Orinda-Moraga's rate increase application. The overall objective of the analysis was to evaluate the reasonableness of the expense projections contained in the application and, after giving effect to rate-setting adjustments, compute the percentage increase in revenue required to produce a 95% operating ratio. Approach to the Analysis The analysis was completed by performing the following tasks: Review the rate increase application for completeness and internal accuracy. Review the st~tement of operations for the calendar year ended December 31, 1982 provided in the rate increase application, and verify its accuracy by comparison to unaudited financial statements prepared by Orinda-Moraga's certified public accountant. Review the projected statement of operations for the fiscal year ended March 31, 1984 submitted in support of the rate increase appl ication. Based on the results of the analysis, the projected expenses for the fiscal year ended March 31, 1984 submitted by Orinda-Moraga are considered to be reasonably stated. Summary of Schedules Included A. Statement of operations for the year ended December 31, 1982, and projected expenses for the fiscal year ended March 31, 1984. In this statement, adjustments are made to certain expenses to el iminate ex- penses not allowed for rate-setting purposes, and restate expenses which are treated differently for financial statement presentation than for rate-setting purposes. B. Rate adjustment analysis, showing the percentage increase in revenue which would produce a 95% operating ratio. This analysis also shows the return on investment produced by the revenue increase. -1- C. Schedule of comparative increases in expenses. This schedule compares increases in projected expenses to those of two prior years by major categories of expenses. D. Comparative ratio analysis schedule. This schedule shows operattng ratios, return on investment, and rate increases requested and computed for the projected period and the prtor year. E. Schedule of residential and commercial service rates for Orinda-Moraga and other refuse collectors in the Bay Area. Explanation of Significant Expenses Orinda-Moraga's total expenses are projected to increase by 8.4% during the fiscal year ended March 31, 1984. Expenses which are projected to increase greater than 5% are explained on the page following the statement of operations schedule. These explanations provide adequate substantiation for the figures they support. Acme Landfill Corporation Dividends The stockholders of Orinda-Moraga, and other refuse collectors operating in central Contra Costatounty, own the Acme Landfill Corporation (Acme). As the ownership shares in Acme are held in the names of the stockholders of Orinda-Moraga, dividends of $9,000 in 1982 and $36,000 in 1981 were received by them directly and are not recorded in the Orinda-Moraga financial statements. Acme's dumping charges increased from $1.OO/cubic yard to $1.25/cubic yard on April 1, 1983. A review of charges of other nearby dump sites dtsclosed that Acme's charges are amoung the lowest. Implementation of Consultant's Suggestions On April 7, 1983, the Board of Directors determined that the following suggestions by Price Waterhouse were to be implemented in the analysis of the present rate increase application: A. Operational information should be included as part of the rate appli- cation. Orinda-Moraga provided the following operational information for use in the rate application analysis: Number of customers by zone, by class Number of tIps at Acme Landfill Number of drivers and helpers by zone Number of revenue producing trucks by zone -2- B. Franchise fees should be excluded from allowable operating expenses in calculating the revenue requirement under the Operating Ratto method, and should then be added to the revenue requirement so determined to produce the total revenue requirement. Franchise fees were excluded from allowable operating expenses and the revenue requirement shown on the rate adjustment analysis schedule was determined as described above. C. Return on Equity as a method of calculating allowable profit should be provided to the Board in addition to the customary Operating Ratio calculation. The computation of Orinda-Moraga's allowable profit under the Return on Equity method using a 20% rate of return is presented below: Stockholders. equity as of December 31, 1982: Capital Stock Capital contributed in excess of par value Retained Earnings Total Stockholders' Equity Rate of return Net Income, after income taxes Add back estimated income taxes Income before income taxes (Allowable profit) Operating expenses as adjusted, per statement of operations Add: Franchise fees $5,400 I nterest and bank Charges $9,597 Less: Interest paid to stock- holders (1,020) 8,577 Allowable profit Revenue required Revenue provided by Other Income, etimated Revenue required, net Projected revenue Increase in projected revenue required Percentage increase in revenue required -3- $ 6,000 11 ,987 143,379 $1 61 ,366 20% $ 32,273 3,500 $ 35,773 1,747.955 13,977 1 .761 ,932 35,773 $1 ,797,705 10,000 1 ,737,705 1 ~ 699, 149 $ 88,556 5.2% The use of the Return on Equity method produces a percentage increase in revenue required of 5.2%, which is lower than the 8.6% increase determined under the Operating Ratio method. A 20% rate of return was used in the return on equity calculation in consideration of Price Waterhouse~s suggested 14% to 20% range and the following industry and general business rates of return: 1982 average 90-day Treasury Bill rate 11.1% Industry Return on Equity %: Browning - Ferris Waste Management 1981 19.4 22.5 1980 17.4 21.2 D Officers' compensation should be reviewed for reasonableness by re- ferring to industry compensation guides. The compensation of Orinda-Moraga's officers was reviewed and is considered reasonable. " -4- I \T1 I ., Cb < N Cb Cb ::l 0.. I: Cb -To o ., ., Cb .0 ., I: Ol rt ., Cb Cb I 3 III Cb Cb ::l rt rt rt IT! X .........................-................ '"C ~WN""'- ""'-''-''''''-''''......... OJ ::l Ol -i-i-i-irt o 0 0 0 o Cb Ol Cb Cb ::l Xo..XX n \..... n n -c --0 I:lIll:l:-To o..rto..o.. Cb Cb Cb Ol -n 0.. -To 0 -. 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" ., I: ., III 0 ........... r1' '--. n 3 Cb ., Cb n -::l rt rt Cb III 0.. ..." )> -< 0.. Cb \..... Ol 1:)> ., III III rt IT! Cb :l 0.. Q. Cb Q. ~ Ol ., n ::J" )>::l 3 n W o ., I: Cb ::l Ol rtlll Cb \.0 00 ~ -< Cb Ol ., IT! ::l 0.. Cb 0.. o Cb n ~ 0" Cb ., W Vl -i ~ \.0 IT! 00 ~ N IT! :z Ol -i ::l 0.. 0 ..." ..." o III " n IT! Ol :::0 )> -i -< Cb 0 Ol :z ., Vl IT! ::l Q. Cb Q. ~ Ol ., n ::J" W .... ~ 00 ~ III n Ol - o :::0 :z C )> I ~ o :::0 )> C') )> C Vl " o VI )> r- VI IT! :::0 < n IT! :z n I"'- ~ Explanation of projected increases in expenses greater than 5% Wages and Employee Benefits - projected increases are based on the union contract currently in effect, which extends through December 31, 1985 and increased worker's compensation insurance rates. Payroll Taxes - projected increases are based on wages and increase in proportion to wages. Dumping Charges - projected increase is based on Acme Landfill Corporation's dumping charge increase from $1.00 to $1.25 per cubic yard effective 4/1/83. !" -6- r-'NDA-MORAGA DISPOSAL SERVICE, II~ RATE ADJUSTMENT ANALYSIS Fiscal Year Ended March 31, 1984 Actual revenue, year ended December 31, 1982 $1,699,149 Projected revenue, fiscal year ended March 31, 1984 $1 ,699, 1 49 $1,747,955 Projected operating expenses, as adjusted, fiscal year ended March 31, 1984 Projected revenue required to produce 95% operating ratio $1,839,953 Add: Projected franchise fee Projected revenue required, adjusted for projected franchise fee 5,400 $1,845,353 Increase in projected revenue required, fiscal year ended March 31, 1984 $ 146,204 Projected net income $ 91,998 Percentage increase in projected revenue required 8.6% Percentage increase computed Percentage increase applied for 8.6% 12.3% Investment Base: Accounts Receivable Fixed Assets $ 108,823 420,630 $ 529,453 Projected Return on Investment 17.4% ~7"', ~ ~ ORINDA-MORAGA DISPOSAL SERVICEJ INC. COMPARATIVE INCREASES IN EXPENSES OVER PRIOR 12 MONTH PERIOD Proj. FYE 3/31/84 Actual VE 12/31/82 Actual VE 12/31/81 Expense Increase Expense Increase Expense Increase Operating Expenses Amount % Amount ! Amount 1 Labor $ 45J468 7.2 33,051 5.6 51,137 9.4 Employee Benefits 43,323 28. 1 11 ,982 8.4 (2,062) (1.4) fuel 7,662 5.0 4,840 3.3 25,559 20.8 All Other 38,544 5.7 59,883 9.7 102,332 19.8 Total $134,997, 8.4 109,756 7.3 176,966 13.3 " -8- I""'- ~ ORINDA-MORAGA DISPOSAL SERVICE, INC. COMPARATIVE RATIO ANALYSIS 1982 and 1983 1982 Operating Ratio 94.9% 1982 Return on Investment 16.3% 1983 Percentage Increase 8.4% in Projected Operating Expenses 1983 Rate Increase Requested 12.3% 1983 Rate Increase Computed 8.6% 1983 Projected Return on Investment 17.4% , -9- o I n l"'t -< o ~ :at: III ::l c: l"'t n .., ('D ('D " - < III ('D -< o VI "'0 o VI III Vl ('D .., < n ('D '-" o .c- ........ o ..... ........ 00 N '" ....... \n N ....... \n N I W N 10 III n III ::l VI o .., N "'0 - III VI l"'t n 0'" III 10 VI III l"'t n c: .., 0'" w ........ -< .., 3: III X N -< c.. III l"'t n c: .., 0'" ~ Vl III III ::l ::l c: ;:10 l"'t III -1'1 n III .., ('D ('D ('D ^ - :r: - < III ('D -< o VI "'0 o VI III Vl ('D .., < n ('D '-" o .c- ........ o ...... ........ 00 N ....... . Ul o W \n \n N I W o 10 III n III ::l VI III l"'t n c: .., 0'" w ........ -< .., 3: III X N -< c.. III l"'t n c: .., 0'" -< '-" N ........ o ..... ........ 00 N '" . 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J:- \11 -....I J:- \n J:- \..0 o \.oJ o o o \n \11 o \11 o . o o \..0 \n \.oJ \.oJ o c: 0- :J \11 o \n \11 o \n o o N 00 N o \n 0" \.oJ \11 \11 o . 0" o \..0 00 o o OJ :J < m ....... < OJ m -< o Vl " o Vl OJ ....... \n \11 00 N \11 .... .... 00 o -(/)- \.oJ o N \11 -(/)- \11 0" \11 \11 J:- . \11 o \..0 0" o o n o :J n o ., c.. -(/)- 00 00 o -(/)- 00 00 o -(/)- .... \n J:- o n m ~-f ~ !. 7'n ...om :z o n- )> < OJ OJ 0- m ~-f m ~ m -. 7'n ...om -< -(/)- 0" \..0 . \n o ~ m 0 m :J 7'n ....m -< -(/)- ~"t ~ -. 7'n ....m \.oJ \11 o n n- o ., .." ., OJ :J n :r Vl m )> ~ 0" m :J OJ m m ., 7' n- -n3 -< OJ m :J :J n- Vl ~~o m :J 7'n ...om ~ m 0 m :J 7'n ...om -< n o ::r ::r m :::c n )> r- V'I m :::c < n n m OJ :J :::c )> V'I -f m m ., V'I < ." o :::c :z m C> :J: CD o :::c :z C> n o 3: 3: c:: :z -f m V'I o :J m I -< OJ ., 0- CD :J Vl -f ~ o I -< OJ ., c.. CD :J Vl . . . <((sD Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer NO. V-2 Ma 5 1983 DATE April 28, 1983 SUBJECT APPROVE AMENDMENT TO SUBCONTRACTORS LISTED BY DALZELL CORPORATION FOR DISTRICT PROJECT NO. 3433, PUMP STATIONS RENOVATI ONS TYPE OF ACTION SUBMITTED BY Jay S. McCoy INITIATING DEPT.!DIV. Construction & Services Division ISSUE: A subcontractor which was not I isted on Dalzell IS bid documents will do work on District Project 3433. BACKGROUND: By law, changes in subcontractors or new subcontractors on District projects must be approved by the Board of Directors. Dalzell Corporation will use Mountain Cascade for excavation and sewer work on the pump station renovation project. Such use was not anticipated when bids were submitted. Hence, Mountain Cascade was not I isted by Dalzell originally. It is now necessary to approve Mountain Cascade as a subcontractor on the subject project. RECOMMENDATION: Approve Mountain Cascade as a subcontractor on District Project 3433. REVIEWED AND RECOMMENDED FOR BOARD ACTION ,2fjJ RAB BOARD OF DIRECTORS NO. May 5, 1983 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE SUBJECT A ri I 26 TYPE OF ACTION 8 PROPOSED INCREASE IN FRANCHISE FEE ASSESSED TO REFUSE COLLECTORS SET FRANCHISE FEE SUBMITTED BY Walter Funasaki INITIATING DEPT./DIV. Administrative ISSUE: District staff proposes that the expense of the recently completed review of the District's refuse collection rate-setting procedures by Price Waterhouse be recovered by increasing the franchise fees assessed to Valley Disposal Service, Inc., Orinda-Moraga Disposal Service, Inc., and Pleasant Hill Bayshore Garbage Disposal Company. BACKGROUND: The District has charged the three franchised refuse collectors an aggregate sum of $20,000 per year since 1978, which is allocated to the refuse collectors on the basis of residential customer counts. This franchise fee is intended to defray District expenses in administering the franchises, including the review of refuse collection rate increase appl ications. The expense of the review of the District's rate-setting procedures by the consulting firm of Price Waterhouse totaled $13,250. Suggestions made by Price Waterhouse in its report have been approved by the Board for implementation in the District's rate-setting process. District staff believes it to be appropriate to charge the refuse collectors for the expense of the consultant's review by increasing the existing aggregate franchise fee by $4,417 for the next three fiscal years beginning July 1, 1983. RECOMMENDATION: The annual franchise fee assessed to refuse collectors should be increased by $4,417 for three fiscal years beginning July 1, 1983, to defray the expense of the consultant's review. REVIEWED AND RECOMMENDED FOR BOARD ACTION IN~~ DEPT./DIV. . ~~ WF ~i') BOARD OF DIRECTORS NO. VI-2 Ma 5 1983 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE SUBJECT A ril 29 1983 TYPE OF ACTION 1983-1984 EQUIPMENT BUDGET BUDGET REVIEW Walter Funasaki INITIATING DEPT./DIV. Administrative SUBMITTED BY ISSUE: The 1983-1984 Equipment Budget is being submitted for initial review by the Board of Directors. The Equipment Budget is scheduled for Board approval on May 19, 1983. BACKGROUND: The 1983-1984 Equipment Budget is assembled by department, and contains a description and justification for each equipment request. As a result of the increase in the cost limit for equipment items from $100 to $250, only requests for single items, or a set of items, which cost $250 or more are included in the 1983-1984 Equipment Budget. As has been the practice in the past, a 10% allowance for minor capital purchases has been included in the Equipment Budget. However, the 10% allowance has been computed on a District-wide basis in 1983-1984 whereas, in the past, the allowance was developed on a departmental basis. Purchases from this allowance which are $1,000 or less would be permitted upon approval by the General Manager- Chief Engineer. A summary of the 1983-1984 departmental requests in comparison to the approved equipment budgets for the three preceding fiscal years is provided. Additionally, a summary of equipment by functional groupings is attached. RECOMMENDATION: Review the 1983-1984 Equipment Budget, and calendar for approval at the May 19, 1983 Board Meeting. REVIEWED AND RECOMMENDED FOR BOARD ACTION INI~ING DEPT./DIV. . &6-~~F <c(sD Cent BOARD OF DIRECTORS POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer NO. VI-3 Ma 5 1983 5/3/83 DATE SUBJECT RECEIVE CORRESPONDANCE REGARDING NOTICE OF MEETING FROM BUILDING INDUSTRY ASSOCIATION TYPE OF ACTION Receive Request SUBMITTED jlY . Llyde M. Hopklns INITIATING DEPT./DIV. Administrative BACKGROUND: The current and past practices of staff in regard to glvlng notice of meetings at which oral or written presentations concerning District fees and/or service charges are consistent with Section 54 992 of the Government Code as mentioned in the attached correspondence. RECOMMENDATION: Receive correspondance from the Building Industry Association and instruct staff to comply with request. REVIEWED AND RECOMMENDED FOR BOARD ACTION CMH .....~tlN CAL,/:. o~'\'" O.p~ ~ ;y B I R BUILDING INDUSTRY ASSOCIATION EASTERN DIVISION BUILDING INDUSTRY ASSOCIATION 1280 BOULEVARD WAY #211, WALNUT CREEK, CA 94595 (415) 932-8884 (415) 444-8711 Marcl1 15, 1983 President and Members of the Board central Contra Costa Sanitary District 5019 Imhoff place Martinez, CA 94553 ~ II C IE 8 V Ii D /)r'~ r MAR 1 7 1983 fY'/ cccso c73 SEC"~ARY OF THE plSTRJQT 1".A , .;,,) e.G, /t/V1~ ~ r.J.~t/ .~(~ '.""'l.- J'ufl Dear President and Members of the Board: Section 54992 (Chapter 13, Part 1 of Division 2 of Title 5, of the Government Code) includes a provision that requires that notice of the time and place of the meeting, at which oral or written pre- sentations may be made on a new fee or service charge, or an increase in an existing fee or service charge, shall be mailed at least 14 days prior to the meeting to any interested party who files a written request with the local agency for such notice. This section further provides that at least 10 days prior to the meeting, the local agency shall make available to the public: (1) data indicating the amount of cost, or estimated cost, required to provide the service for which the fee or service charge is levied; and (2) the revenue sources anticipated to provide the service, including general fund revenues. Please consider this our formal request to receive by mail both the meeting notice and the data on any fee or charge matter, as now required by state law. Thank you for your compliance with this request. (!;:Jt2/'(J & DEAN P. LA FIELD Executive Vice President DPLF!g HEADQUARTERS REGIONAL OFFICES: (415) 828-9230 Dublin WEST SAY (415) 574-5705 San Mateo SOUTHERN (408) 243-5889 Santa Clara NORTHERN (707) 664-8150 Rohnert Park AFFILIATED WITH NATIONAL ASSOCIATION OF HOME BUILDERS AND CALIFORNIA BUILDING INDUSTRY ASSOCIATION Central Contra Costa Sanitary District BOARD OF DIRECTORS NO. May 5, 1983 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE Apri 1 28, 1983 SUBJECT APPROVAL OF AMENDMENT NO. 13 TO THE TASK A AGREEMENT WIT METCALF & EDDY FOR ENGINEERING STUDIES. RETURN $6,360 TO THE SEWER CONSTRUCTION FUND. TYPE OF ACTION APPROVE CONTRACT AMENm1ENT SUBMITTED BY Joye Kurasaki, Associate Engineer INITIATING DEPT./DIV. Engineering Division ISSUE Board approval is required to amend the Metcalf & Eddy Task A Agreement. Amendment No. 13 would return $6,360 to the sewer construction fund. BACKGROUND Amendment No. 13 is required in order to bring the Metcalf & Eddy Task A Agreement into compliance with SWRCB requirements. As part of Amendment No.3 to the Task A Agreement, Metcalf & Eddy (M&E) was authorized to perform six engineering studies. During the course of their work, the scope and the level of effort for three of the studies were modified. As a result, a cost ceiling increase is required for two of the studies and a cost ceiling reduction for one study. District staff has negotiated a contract amendment with M&E for the changes (see attached sheet for the cost breakdown). The net effect is a $6,360 reduction in the M&E Task A cost ceiling which is due to District staff's efforts to reduce engineering costs. M&E has completed all of the engineering studies. RECOMMENDATION Authorize the General Manager-Chief Engineer to execute Amendment No. 13 to the Task A Agreement. Return $6,360 to the Sewer Construction Fund. REVIEWED AND RECOMMENDED FOR BOARD ACTION Pb cws VL. JAL r?v RAB METCALF & EDDY TASK A AGREEMENT ANENDMENT NO. 13 ENGINEERING STUDIES Amend. A-13 Cost Cost Cost Ceiling Ceiling Item Ceiling Increase Reduct. Comrent l. Raw Sewage Pump Test $13,378 2. Primary Effluent & Final Effluent Pump Test $16,336 ($9,213) Reduce scope of work 3. Filter Backwash Report $ 7,367 4. Air Main Inspection $19,442 5. Concrete Wall Panel Inspection $16,192 $ 853 Increased level of effort 6. OUtfall Inspection $15,034 $2,000 Increased level of effort TOTAL $87,749 $2,853 ($9,213) Net Amendment No. 13 = 9,213 - 2,853 = $6,360 reduction I BOARD OF DIRECTORS NO. May 5, 1983 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE Apri I 29, 1983 TYPE OF ACTION SUBJECT APPROVE A CONTRACT WITH H. J. DEGENKOlB, ASSOCIATES AND AUTHORIZE $10,700 IN SEWER CONSTRUCTION FUNDS FOR THE DESIGN OF WASTE HEAT BOilER SEISMIC RESTRAINTS APPROVE CONTRACT AND AUTHORIZE FUNDS SUBMITTED BY Joye Kurasaki, Associate Engineer INITIATING DEPT./DIV. Engineering Division ISSUE: Board approval is required to execute a contract with H. J. Degenkolb, Associates, and to authorize sewer construction funds for the design of Waste Heat Boiler Seismic Bracing. BACKGROUND: As part of the Stage SA Completion Project, H. J. Degenkolb, Associates, conducted a seismic evaluation of major equipment in the Solids Conditioning Building (SCB) and the treatment plant structures. The results of their study indicated that several structures and pieces of equipment required additional seismic bracing or anchoring. Two major equipment items requiring seismic bracing are the Waste Heat Boilers (WHB's). The two WHB's are part of the Multiple Hearth Furnace (MHF) system which is scheduled to be tested during August and September, 1983. District staff has negotiated a contract with H. J. Degenkolb, Associates to design the seismic restraints for the WHB's. The estimated cost of this contract is $9,890. The estimated design cost is within the compensation guidelines prepared by the American Society of Civil Engineers given the size and nature of the project and the difficulties encountered when designing around existing structures. H. J. Degenkolb, Associates were selected to prepare this design because of their highly regarded expertise in seismic engineering and their famil iarity with the seismic bracing problems at the treatment plant. The project schedule will provide for the installation of the WHB seismic bracing prior to the MHF testing. The construction cost for the bracing is estimated at $SO,OOO. The work on the remaining structures and equipment which were identified as requiring additional seismic bracing will be done at a later date after the MHF test program has been completed. District force account costs to coordinate and administer this contract are estimated at $810. Thus, the total authorization. that is requested is $10,700. RECOMMENDATION: Authorize the General Manager-Chief Engineer to execute the contract with H. J. Degenkolb, Associates and authorize $10,700 in sewer construction funds for design of seismic bracing of the Waste Heat Boilers. REVIEWED AND RECOMMENDED FOR BOARD ACTION JK c~J? \u JAl PB RAB INITIATING DEPT ./DIV.