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HomeMy WebLinkAboutBOARD MINUTES 12-19-96 203 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON DECEMBER 19, 1996 The District Board of the Central Contra Costa Sanitary District convened in a regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:05 p.m. on December 19, 1996. President Menesini called the meeting to order. 1. ROLL CALL ADMINISTER OATH OF OFFICE TO NEWLY ELECTED BOARD MEMBERS BARBARA D. HOCKETT AND MARIO M. MENESINI AND MR. JAMES A. NEJEDL Y a. The Secretary of the District administered the Oath of Office to Dr. Mario M. Menesini and Mr. James A. Nejedly, who were elected to the Board of Directors at the election held on November 5, 1996. At the conclusion of the ceremony, a reception was held honoring newly elected Board Members. It was noted that the Oath of Office will be administered to Ms. Barbara D. Hockett on January 9, 1997. President Menesini reconvened the meeting at the hour of 2:30 p.m. and requested that the Secretary of the District call roll. PRESENT: Members: Rainey, Nejedly, Menesini ABSENT: Members: Boneysteele, Hockett Members Boneysteele and Hockett had advised staff that they would be unable to attend this meeting and had requested that they be excused. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that Consent Calendar Item e. has been withdrawn from the agenda because the necessary paperwork has not been received from the property owner. It was moved by Member Rainey and seconded by Member Nejedly, that the Consent Calendar, consisting of Items a. through g. excluding Item e., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 96-164 accepting an easement at no cost to the District from Remedios Ferrer, Job 1374, Parcel 6, Lafayette area, was adopted and recording was authorized. Motion approved on the following vote: AYES: Members: Rainey, Nejedly, Menesini NOES: Members: None ABSENT: Members: Hockett, Boneysteele b. Quitclaim Deed was approved to Lawrence A. Teplin, et ux, Job 2208, Danville area; the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said Quitclaim Deed; and Resolution No. 96-165 was adopted to that effect. 12 19 96 204 Motion approved on the following vote: AYES: Members: Rainey, Nejedly, Menesini NOES: Members: None ABSENT: Members: Hockett, Boneysteele c. A Grant of Easement was approved and accepted from Contra Costa County Flood Control and Water Conservation District, for the Recycled Water Project - Treatment Plant and Distribution Facilities, DP 7162; the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said Grant of Easement; and Resolution No. 96-166 was adopted to that effect. Motion approved on the following vote: AYES: Members: Rainey, Nejedly, Menesini NOES: Members: None ABSENT: Members: Hockett, Boneysteele 12 d. Resolution Nos. 96-167.96-168.96-169.96-170.96-171, and 96-172 were adopted accepting Grants of Easements from the State of California, Maritime Business Park, and Tidewater Sand and Gravel Company; Quitclaim Deeds were approved for sewer easements to the State of California, Maritime Business Park, and Tidewater Sand and Gravel Company, Job 1550, Parcels 7 and 8; and the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said Quitclaim Deeds and Grants of Easements. Motion approved on the following vote: AYES: Members: Rainey, Nejedly, Menesini NOES: Members: None ABSENT: Members: Hockett, Boneysteele e. The request for approval of an Agreement relating to Real Property with Charles H. Hall and Genevieve M. Hall, Job 4410, Orinda area, was removed from the agenda. No action was taken by the Board of Directors. f. The contract work for the Maltby and Fairview Pumping Stations Electrical Improvements Project, DP 5060, was accepted and the filing of the Notice of Completion was authorized. Motion approved on the following vote: AYES: Members: Rainey, Nejedly, Menesini NOES: Members: None ABSENT: Members: Hockett, Boneysteele g. The attendance of Mr. Tad J. Pilecki, Senior Engineer, and Mr. Kent Von Aspern, Senior Engineering Assistant, was authorized at the Microtunneling Short Course on February 5-7, 1997, in Golden, Colorado, at a cost of $3,200. Motion approved on the following vote: 19 96 205 AYES: Members: Rainey, Nejedly, Menesini NOES: Members: None ABSENT: Members: Hockett, Boneysteele 4. CALL FOR Bfilll.ESTS TO CONSIDER ITEMS OUT OF ORDER None 5. BIDS AND AWARDS a. AUTHORIZE THE SUBSTITUTION OF DELTA ELECTRICAL CONSTRUCTION. INC.. THE LISTED SUBCONTRACTOR. WITH DEL MONTE ELECTRIC CO.. INC., A NEW SUBCONTRACTOR. FOR ELECTRICAL WORK ON THE HOUSEHOLD HAZARDOUS WASTE COLLECTION FACILITY (DP 7165) Mr. Dolan, General Manager-Chief Engineer, stated that no formal presentation has been planned for this matter since the request for substitution of subcontractor is not contested. All appropriate actions have taken place and it would now be appropriate for the Board to authorize the substitution of subcontractors. In response to a question from President Menesini, Mr. Dolan stated that this action will result in no additional cost to the District. It was moved by Member Rainey and seconded by Member Nejedly, that the substitution of the listed subcontractor, Delta Electrical Construction, Inc., with a new subcontractor, Del Monte Electric Co., Inc., be authorized for electrical work on the Household Hazardous Waste Collection Facility Project, DP 7165. There being no objection, the motion was approved with Members Hockett and Boneysteele being absent. b. CONDUCT A PUBLIC HEARING AND CONSIDER REQUEST TO SUBSTITUTE DEL MONTE ELECTRIC CO., THE LISTED SUBCONTRACTOR. WITH CRA-TEK INDUSTRIAL CONTROLS & ELECTRIC. A NEW SUBCONTRACTOR. FOR ELECTRICAL AND INSTRUMENTATION WORK ON THE ORINDA CROSSROADS, MORAGA AND LOWER ORINDA PUMPING STATIONS (PHASE II) PROJECT. DP 4898 President Menesini stated that the purpose of this public hearing is to receive comments on the proposed substitution of Del Monte Electric Co., the listed subcontractor, with Cra- Tek Industrial Controls & Electric, a new subcontractor, for electrical and instrumentation work on the Orinda Crossroads, Moraga and Lower Orinda Pumping Stations (Phase II) Project, DP 4898. Mr. Dolan, General Manager-Chief Engineer, stated that the issue before the Board will be to determine whether or not the subcontractor has failed to sign a contract which is consistent with the proposal the subcontractor made to the contractor before the sealed bid was made. If so, the appropriate course of action would be for the Board to approve the general contractor's request. If not, the request can be denied. Mr. Dolan introduced Mr. Ron Klimczak, Senior Engineer, who reviewed the chronology of events relating to the request for substitution of subcontractor as set forth in the document distributed to the Board and audience and hereby incorporated by reference. Mr. Klimczak reviewed the scope of work document submitted by Del Monte (Del Monte) Electric Co., Inc. to Monterey (Monterey) Mechanical Company. This document was faxed by Del Monte to Monterey at 5:48 a.m. on August 29, 1996. The handwritten comments were made by a Monterey person. No price was included in this document, but an indication was made that the price would be provided in the near future. Mr. Klimczak reviewed the Exclusion List, stating that none of the items listed refer to generators but to other types of recurring work. In response to a question from Mr. Kenton L. Aim, Counsel for the District, Mr. Klimczak stated that no question was raised nor exception taken with regard to Sections 16000 and 17000 or 160000 and 170000 of the specifications. Mr. Klimczak read the first sentence of Section 1 64001; the section of the specifications dealing specifically with generator sets. Mr. Klimczak then stated that at the bottom of the scope of work document from Del Monte, the note "Eng/Cat" refers to the engine generators. Cat is an 12 19 96 206 abbreviation for the brand name Caterpillar. Mr. Klimczak stated that from this note it is not possible for him to determine whether the generators were included or excluded from the bid. Mr. Klimczak reviewed Exhibit E faxed from Del Monte to Monterey on September 5, 1996. That document excludes generators and gives a breakdown of the Del Monte August 29, 1996 bid. Discussion followed with regard to the sequence of events between the time the bid was opened and the contract was awarded. Mr. Klimczak stated that the District was first advised there was a problem between the contractor and the subcontractor immediately after the October 31, 1996 preconstruction meeting. The District had a valid bid from the general contractor, Monterey. The contract had already been awarded to them at the September 19, 1996 Board Meeting. The substitution request was discussed with both Monterey and Del Monte on several occasions following the October 31 notification of the scope of work dispute. At 3: 12 p.m., President Menesini opened the public hearing to receive comments on the proposed substitution of subcontractor. Mr. Timothy A. Roberts, Monterey Mechanical Project Manager, addressed the Board stating that as a contractor Monterey is faced with a situation where different subcontractors have different scopes of work. Monterey lists all the subcontractors' bids on one sheet for purposes of comparison and arrives at a bottom line total. That document is attached to the position paper and numbered page 6 of 32. Mr. Roberts referenced supplemental documents provided with the position paper and numbered page 3 of 32 up to and including page 11 of 32. Mr. Roberts referred to the letter from Del Monte that indicates Del Monte would not sign a contract with Monterey if tendered if the generator sets were included and stated therefore that Monterey is requesting to delist Del Monte as the subcontractor. Discussion followed with regard to exclusion of generator sets, bids submitted by other subcontractors, the process and timing of getting bids from subcontractors and submitting the final bid to the District. Mr. Hank Cassady, of Del Monte, addressed the Board relative to the bid submitted by Del Monte. Mr. Cassady stated that Del Monte did exclude generator sets on the Monterey bid and on all the other bids submitted to other contractors as shown in the attachments to the position paper. Mr. Cassady stated that when he talked to Mr. Bob Grey, the Monterey estimator for this project, he was asked if Del Monte got a quote for generators. Mr. Cassady advised that he did get a quote from Peterson. Monterey asked for a confirmation of the Del Monte bid after the fact. That was provided. Mr. Cassady stated that when the Del Monte bid price is compared to the others, it is clear that generator sets were not included. If the cost of generator sets is added to the Del Monte bid price, it is in line with the majority of the contractors. Mr. Cassady stated that the generators that Cra-Tek intends to use will not meet the specifications. Mr. Roberts acknowledged that Monterey has the obligation to provide equipment that fully complies with the contract documents. Mr. Roberts stated that Monterey will furnish generator sets as specified or equal since no exceptions were taken to the specifications. Mr. Aim, Counsel for the District, indicated that there is a dispute otherwise the contesting parties would not be here. Under the circumstances of a competitive bid, it is not surprising that occasionally disputes arise. Mr. Aim cited Public Contract Code Section 41 07(a)( 1) dealing with substitution of subcontractors and listing circumstances under which substitutions can be made. Substitution can be made when the subcontractor listed in the bid after having had a reasonable opportunity to do so fails or refuses to execute a written contract, based upon the general terms, conditions, plans and specifications for the project involved or the terms of that subcontractor's written bid. Mr. Aim stated that the first written document does not exclude generator sets. The Board must determine if enough evidence was provided to determine that that bid form was modified by mutual oral agreement. If the Board concludes there was sufficient evidence that there was agreement as to the change, then the Board should deny the written request for substitution of subcontractor; but if the Board cannot come to the conclusion that the written contract was modified by mutual agreement, the Board must make the decision to approve the substitution of subcontractor. 12 19 96 207 Discussion followed with regard to the documents and testimony presented. Following discussion and based on the documentation and testimony presented, Mr. Dolan, General Manager-Chief Engineer, recommended that the Board approve the request of Monterey for substitution of subcontractor. Mr. Dolan stated that by this recommendation he does not wish to infer that he does not believe one or both of the parties. It would seem that a simple misunderstanding is a likely explanation for this dispute. By approving the substitution of subcontractor, the District's general contractor Monterey would continue to have the obligation to perform the work. Any further dispute would be between Monterey and Del Monte. Following discussion, it was moved by Member Rainey and seconded by Member Nejedly, that it is concluded that Del Monte Electric Co. is not willing to execute a contract with Monterey Mechanical Co., which is based on the terms and conditions of its written bid; and that the request for substitution of the listed subcontractor, Del Monte Electric Co., Inc., with a new subcontractor, Cra-Tek Industrial Controls & Electric, for the electrical and instrumentation work on the Orinda Crossroads, Moraga and Lower Orinda Pumping Stations (Phase II) Project, DP 4898, be approved. Motion approved on the following vote: AYES: Members: Rainey, Nejedly NOES: Members: Menesini ABSENT: Members: Hockett, Boneysteele President Menesini stated that if you go strictly on the written bid, perhaps the weight of the evidence is on the side of Monterey; but if you consider the oral conversations as well, the weight of the evidence is on the side of Del Monte. President Menesini also thought consideration should be given to rebidding the project, but Mr. Aim emphasized that that option does not exist since the project award has occurred. Mr. Aim, Counsel for the District, noted that for the purposes of the administrative record, the following documents should be included and by reference incorporated hereto: . Exhibits A through N . The Project Manual, Contract Forms, Conditions, and Specifications for Orinda Crossroads, Moraga and Lower Orinda Pumping Stations (Phase II) Project, DP 4898 . The three-page chronology of events referenced by Mr. Klimczak in his presentation . The position paper and attachments President Menesini so ordered. a. 6. REPORTS GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, introduced Mr. William E. Brennan, Plant Engineering Division Manager, who reviewed the status of the Ultraviolet (UV) Disinfection Project. As the Board is aware, the project schedule has slipped. This is because the contractor has been experiencing start-up complications. At the time of the District's 50th Anniversary celebration, an overview of the UV Project and its complications was presented with the expectation that these difficulties would soon be over. It is now hoped that the UV system will meet specifications by the end of January 1997. The UV system does disinfect the District's effluent. The problems experienced by the contractor are technical in nature and solvable; however, these problems are delaying the day when chlorine will be removed from the Plant site. Mr. Brennan stated that the change orders on 12 19 96 208 b. c. d. 12 this project are very low for a contract of this size. Change orders amount to $48,496.00 to date, representing 0.5 percent of the original contract amount. Through November 30, 1996, a total of $76,800.00 in liquidated damages had been withheld because of a delay in completion. This delay relates primarily to electrical issues. Mr. Brennan stated that there have been a number of pieces of electrical equipment that have had problems, many of which have been resolved. The initial process testing has been completed. District lab data shows very good results for the UV disinfection testing done; however, the contractual 7-day test was not accepted because there were some reliability issues and mechanical problems during the test period. The mechanical problems are with breakage of the quartz tubes in which the bulbs are contained. The breakage could have been caused by carelessness during trucking or installation. There is a one-year warranty from the contractor. This warranty has not yet started because the project has not been accepted. A great deal of effort is being made by both Plant and Engineering staff to document what is happening. Staff will keep the Board apprised. 2) Due to the lateness of the hour, the report on the Wendt Ranch Development was continued to January 9, 1997. 3) Mr. Dolan, General Manager-Chief Engineer, announced that the District is prequalifying microtunnelers for the South Orinda and Martinez Projects. 4) Mr. Dolan, General Manager-Chief Engineer, announced that the District is advertising for bids for the Recycled Water Project - Treatment Plant and Distribution Facilities, DP 7162. The engineer's estimate for the work is $2,400,000. 5) Mr. Dolan, General Manager-Chief Engineer, announced that the District's new AS/400 computer has been installed and is operating. The new computer is significantly faster. A task that used to take 90 minutes was completed in just seven minutes. 6) Mr. Dolan, General Manager-Chief Engineer, announced that changes in bargaining units have been requested. A group of engineers and the Planning Assistant group have requested to be represented by the Management Support/Confidential Group. Local One is contesting both requests. Mediation will occur. 7) Mr. Dolan, General Manager-Chief Engineer, announced that Internal Revenue Service rules allow the District to implement a 401 (a) Plan which would allow employees to shelter a larger percentage of their income. Before formally presenting this matter to the Board for action, staff is analyzing and discussing the acceptability with the bargaining units. 8) Mr. Dolan, General Manager-Chief Engineer, announced that during the recent wet weather event during the week of December 9, 1996, the District pumped 120 MGD flawlessly. COUNSEL FOR THE DISTRICT None SECRETARY OF THE DISTRICT None BOARD MEMBERS 1 ) Member Rainey reported on the December 12, 1996 Central Contra Costa Solid Waste Authority (CCCSWA) meeting at which reducing membership from two representative per agency to one was reconsidered. Member Rainey stated that she has indicated to CCCSWA that the District may not 19 96 209 want to continue its membership since we are no longer a franchiser. It was agreed that this matter will be calendared for Board consideration on January 23, 1997. 7. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT FOR $66.235 WITH DCM/JOYAL ENGINEERS TO PROVIDE GEOTECHNICAL ENGINEERING SERVICES FOR THE MARTINEZ EAST SIDE TRUNK SEWER PROJECT. DP 4950 Following explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Nejedly and seconded by Member Rainey, that the General Manager-Chief Engineer be authorized to execute a professional engineering agreement with DCM/Joyal Engineers with a cost ceiling of $66,235 to provide geotechnical engineering services for the Martinez East Side Trunk Sewer Project, DP 4950. There being no objection, the motion was approved with Members Hockett and Boneysteele being absent. 8. APPROVAL OF MINUTES a. MINUTES OF DECEMBER 5. 1996 It was moved by Member Rainey and seconded by President Menesini, that the minutes of December 5, 1996 be approved as presented. There being no objection, the motion was approved with Members Hockett and Boneysteele being absent. 9. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED DECEMBER 19. 1996 President Menesini, member of the Budget and Finance Committee, stated that he reviewed the expenditures and found them to be satisfactory. President Menesini requested, and Plant Operations Department Manager Charles W. Batts agreed, that Mr. Phil Snyder, Senior Chemist, would brief President Menesini on the WET technique and results as applied to the District's incinerator ash. It was moved by President Menesini and seconded by Member Nejedly, that the Expenditure List dated December 19, 1996, including Self-Insurance Check Nos. 101216- 101225, Running Expense Check Nos. 100638-100945, and Sewer Construction Check Nos. 17840-17896, be approved as recommended. There being no objection, the motion was approved with Members Hockett and Boneysteele being absent. 10. BUDGET AND FINANCE RECEIVE NOVEMBER 1996 FINANCIAL STATEMENTS a. Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance expenses for the month of November 1996, noting that expenditures were $228,000 less than budget, representing a 9.7 percent favorable variance. Year to date, expenditures were $908,000 less than budget, representing a 7.8 percent favorable variance. Operations and maintenance revenues for November 1996 were $1,797,000, 11.7 percent below budget. Ms. Ratcliff reported that the District's temporary investments were held in Treasury bills and Treasury notes and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 5.16 percent to 6.24 percent. The latest interest rate as of November 1996 was 5.4 percent. The average yield of the LAIF account through October 1996 was 5.6 percent. President Menesini declared that the November 1996 Financial Statements were duly received. Mr. Dolan, General Manager-Chief Engineer, stated that once again the departments are doing a good job of keeping costs under control. 12 19 96 210 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS It was noted that the report of the Wendt Ranch Development was carried over to the January 9, 1997 Board Meeting; consideration of continued participation in the Central Contra Costa Solid Waste Authority will be calendared for January 23, 1997; and an update on Martinez Projects will be provided at a future Board Meeting. 13. CLOSED SESSION a. EXISTING LITIGATION The closed session to discuss existing litigation pursuant to Government Code Section 54956.9(a), Acme Landfill Corp. v. Althin CD Medical, Inc., CCCSD, et ai, U.S. District Court No. C91-4268 SBA, was not held. This item was continued to an Adjourned Regular Meeting on Monday, December 23, 1996 at 3:00 p.m. b. SIGNIFICANT EXPOSURE TO LITIGATION The conference with Legal Counsel to discuss significant exposure to litigation pursuant to Government Code Section 54956.9(b), one potential case, was not held. 14. REPORT OF DISCUSSIONS IN CLOSED SESSION None 15. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at the hour of 5:26 p.m. to reconvene at 3:00 p.m., December 23, 1996 for an Adjourned Regular Meeting and to reconvene at 2:00 p.m., January 9, 1997 for an Adjourned Regular Meeting. ~~~~s~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 12 19 96