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HomeMy WebLinkAbout5/18/2006 AGENDA BACKUPCentral Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006 No.: 3.a. CONSENT CALENDAR
Type of Action: ACCEPT CONTRACT WORK/AUTHORIZE NOTICE OF
COMPLETION
subject: ACCEPT THE CONTRACT WORK FOR THE TREATMENT PLANT
SAFETY ENHANCEMENTS, PHASE 2, DISTRICT PROJECT 7229, AND
AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION
Submitted By: Initiating Dept./Div.:
Clint T. Shima, Assistant Engineer Engineering / Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
ll�
C. Shima B. Than A. arrell
General
ISSUE: Construction has been completed on the Treatment Plant Safety
Enhancements, Phase 2, District Project 7229, and the work is now ready for
acceptance.
RECOMMENDATION: Accept the contract work for the Treatment Plant Safety
Enhancements, Phase 2, District Project 7229, and authorize the filing of the Notice of
Completion.
FINANCIAL IMPACTS: None related to this action.
ALTERNATIVES /CONSIDERATIONS: Not Applicable. Filing the Notice of Completion
is advisable under the California Civil Code, Section 3093.
BACKGROUND: This project was the second phase of treatment plant related safety
work. Work completed to date includes handrail and grating enhancements, concrete
work, platform fabrication, and fall protection.
This project consisted of a number of safety related work orders that required
engineering support. These individual work orders were grouped into a capital project
to gain economy of scale. Work was performed at a number of sites around the plant
and also at the Household Hazardous Waste Facility. The scope of work included:
handrailing improvements, concrete work, chemical tank replacement, davit arm
placement, and grating improvements.
On June 16, 2005, the Board of Directors authorized the award of a contract for the
construction of the project to Valentine Corporation. The Notice to Proceed was issued
on July 26, 2005. The work was substantially completed on April 14, 2006. The
remaining items of work consist of minor punch -list items, which do not affect the
project acceptance.
NAPESUP \Position Papers \Shims \7229 Accept.DOC Page 1 of 2
t
POSITION PAPER
Board Meeting Date: May 18, 2006
subject: ACCEPT THE CONTRACT WORK FOR THE TREATMENT PLANT SAFETY
ENHANCEMENTS, PHASE 2, DISTRICT PROJECT 7229, AND AUTHORIZE THE
FILING OF THE NOTICE OF COMPLETION
The total authorized budget for the project is $910,000. The budget includes the cost of
engineering design, District forces, testing services, contractor services, etc. An
accounting of the project costs will be provided to the Board at the time of project
closeout. It is appropriate to accept the contract work at this time.
RECOMMENDED BOARD ACTION: Accept the contract work for the Treatment Plant
Safety Enhancements, Phase 2, District Project 7229, and authorize the filing of the
Notice of Completion.
NAPESUP \Position Papers \Shima \7229 Accept.DOC Page 2 of 2
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006
Type of Action: ADOPT RESOLUTIONS
No.: 3.b. CONSENT CALENDAR
subject: ADOPT RESOLUTIONS AUTHORIZING EXECUTION AND RECORDING OF
QUITCLAIM DEEDS TO THE KENT S. HARRIS AND PATTI N. HARRIS TRUST
AND GAIL A. MATTES (DISTRICT PROJECT 1552 — PARCELS 4 AND 45)
Submitted By: Initiating Dept/Div.:
Molly Mullin, Engineering Assistant III Engineering /Environmental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
'quj�- 104. V49ZI
M. Mullin M. Penny V C. Swanson X Fa II harles
General
ISSUE: The Board of Directors is required to quitclaim easements and authorize
recording of documents by resolution.
RECOMMENDATION: Adopt resolutions authorizing execution of Quitclaim Deeds to
The Kent S. Harris and Patti N. Harris Trust, and to Gail A. Mattes, and authorize
recording of the documents.
FINANCIAL IMPACTS: None.
ALTERNATIVES /CONSIDERATIONS: None
BACKGROUND: The original sewer constructed under District Project 1552 in 1948
has been abandoned. A new sewer constructed under District Project 5929 was
installed along a new alignment and new easements have been acquired. The old
easements are no longer needed. See Attachment 1 for the location of the new
alignment and the easements to be quitclaimed.
RECOMMENDED BOARD ACTION: Adopt resolutions authorizing the President of the
Board of Directors and the Secretary of the District to execute Quitclaim Deeds to The
Kent S. Harris and Patti N. Harris Trust, and to Gail A. Mattes, on behalf of the District,
and authorize recording of the documents with the Contra Costa County Recorder.
Page 1 of 2
N: \ENVRSEC \Position Papers \Mullin\2006 \1552 PP Quiticaim Har-ris Trust 5- 18- 06.doc
3 �
SITE
-
Waxen Rd�
1
LOCATION MAP
I N. T. S.
I
I
I
I
L -- --
I
�4 Parcel 45
Mattes 184 - 180 -011
- p - - - - -- -- - - - - --
EXISTING Harri �._�
EASEMENTS Jrust
TO BE
QUITCLAIMED Parcel
Acorn Court 184- 180 -032
`tea
LEGEND N
EASEMENT AREA
Central Contra Costa Attachment
Sanitary District HARRIS TRUST AND MATTES
QUITCLAIM
' DP 1552 PARCELS 4 & 45
Page 2 of 2
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006 No.: 3.c. CONSENT CALENDAR
Type of Action: ADOPT RESOLUTIONS
subject: ADOPT RESOLUTIONS AUTHORIZING EXECUTION AND RECORDING OF
QUITCLAIM DEEDS TO THE GREGORY LOUIS FENVES AND CARMEL A.M.
FENVES 2001 REVOCABLE TRUST, AND JOSEPH C. CONDON (DISTRICT
PROJECT 1559 — PARCELS 26 AND 27)
Submitted By: Initiating Dept /Div.:
Molly Mullin, Engineering Assistant III Engineering /Environmental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
"(4 W-11� /V !� - Vv
M. Mullin M. Penny C. Swanson AFarrel-
Charles
General
ISSUE: The Board of Directors is required to quitclaim easements and authorize
recording of documents by resolution.
RECOMMENDATION: Adopt resolutions authorizing execution and recording of
Quitclaim Deeds.
FINANCIAL IMPACTS: None.
ALTERNATIVES /CONSIDERATIONS: None
BACKGROUND: The original sewer constructed under District Project 1589 in 1958
has been abandoned. A new sewer constructed under District Project 5929 was
installed along a new alignment and new easements have been acquired. The old
easements are no longer needed. See Attachment 1 for the location of the easements
to be quitclaimed.
RECOMMENDED BOARD ACTION: Adopt resolutions authorizing the President of the
Board of Directors and the Secretary of the District to execute Quitclaim Deeds to The
Gregory Louis Fenves and Carmel A.M. Fenves 2001 Revocable Trust, UDT June 1,
2001, and Joseph C. Condon, on behalf of the District, and authorize recording of the
documents with the Contra Costa County Recorder.
N: \ENVRSEC \Position Papers \Mullin\2006 \1559 Pos Paper Quitclaim Fenves Condon 5- 18- 06.doc Page I Of 2
Rd
SITE
LOCATION MAP
N. T. S.
N
i� -QUITCLAIMED AREA
Central Contra Costa Attachment
Sanitary District FENVES TRUST AND CONDON
Awja'k� QUITCLAIMS
JOB 1559 PARCELS 26 & 27
Page 2 of 2
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006
No.: 3.d. CONSENT CALENDAR
Type of Action: ADOPT ADMINISTRATIVE POLICY AND APPROVE CHECK NUMBER
28449
subject: ADOPT A POLICY ON HIRING DISTRICT RETIREES AND APPROVE
CHECK NUMBER 28449
Submitted By: Initiating Dept. /Div.:
Cathryn R. Freitas, Human Administration
Resources Manager
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
w
C. rreotas sgraves
General
ISSUE: The Board of Directors directed staff at the May 4, 2006 Board meeting to
develop a District policy and procedure on hiring District retirees authorizing the
General Manager to hire or contract with District retirees with notification to the Board
and approve check number 28449.
RECOMMENDATION: Adopt a District policy and procedure on hiring District retirees
and approve check number 28449.
FINANCIAL IMPACTS: There is no direct financial impact.
ALTERNATIVES /CONSIDERATIONS: The Board already considered the alternatives
regarding the hiring or contracting with District retirees at the May 4, 2006 meeting.
BACKGROUND: The Board Budget and Finance Committee requested the Board
review the District's current practice of hiring District retirees to ensure sufficient
notification and review by the Board of Directors occurred. The attached policy outlines
the procedure for hiring or contracting with District retirees including Board notification.
Approval of check number 28449 was withheld pending development of a policy and
procedure for hiring District retirees.
RECOMMENDED BOARD ACTION: Adopt a District policy and procedure for hiring
District retirees and approve check number 28449.
Page 1 of 3
Central Contra Costa Sanitary District
HUMAN RESOURCES PROCEDURE
Effective Date: May 18, 2006
Sheet 1 of 2
Subject: POLICY AND PROCEDURE FOR HIRING DISTRICT RETIREES
Established by: Randall M. Musgraves, Director of Administration
The District occasionally may hire a retired employee for legitimate business reasons.
The District may wish to hire or contract with former District employees after retirement
for the overall benefit of the organization, such as to retain special knowledge or
expertise until a replacement is hired, to provide training to another employee, to
complete specific short-term tasks or projects, or to provide a short-term service
normally contracted for by the District. The intent of the District in hiring any District
retiree is to address a short -term need in a method beneficial and cost - effective to the
District, and not as a means for providing on -going employment or income.
The Contra Costa County Employee Retirement Association ( CCCERA) and the State
of California dictate many of the rules governing the hiring of District retirees. The
District may hire District retirees under one of the following procedures:
• District Temporaries -- The District policy for hiring District retirees as temporaries
is based on a CCCERA policy for member agencies. The policy permits the District
to hire retirees who receive pensions from the CCCERA for one hundred and twenty
days or nine hundred and sixty hours in a fiscal year.
It is District practice to hire retirees on a temporary basis only when a position is
vacant within the hiring Department. The retiree is paid the hourly base salary of
the step and range at which he /she was assigned upon retirement from the District.
Note that the base salary excludes longevity pay or other contractual benefits
accorded to regular, full -time employees.
When employment may last more than one hundred and twenty days or nine - hundred
and sixty hours per fiscal year and /or the retiree wishes to continue employment in a
capacity other than as a District temporary, the retiree has the following two options:
Independent Contractor — The retiree may become an independent contractor
under the laws of the State, i.e. establish her /his own working hours, provide his /her
Page 2 of 3
HUMAN RESOURCES PROCEDURE sheet 2 of 2
own vehicle, equipment, and tools, not be supervised by District staff, contract for a
project or number of hours, etc. (The District retains oversight of the final work
product); also under the District Purchasing Policy and Procedures s /he must have
evidence of personal liability insurance, unless waived, or
• Contract Employee — Retirees who do not wish to meet the requirements of self -
employment may work for a private firm that contracts for work with the District. For
example, a retiree may be hired by a consulting firm that would assign the
employee to provide services to the District but not be a District employee.
The CCCERA only limits the amount of time a District retiree may work for any of the
CCCERA member agencies. A retiree may supplement his /her income by working for
himself or herself, or any private corporation or public institution not affiliated with the
CCCERA without any restriction on working hours or income.
Page 3 of 3
CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON
THE DRAFT CAPITAL IMPROVEMENT BUDGET FOR 2006 -07
AND THE DRAFT 2006 TEN -YEAR CAPITAL IMPROVEMENT PLAN
SUGGESTED AGENDA
MAY 18, 2006
I. Request staff presentation.
Conduct public hearing:
A. Open public hearing.
B. Receive public comments.
C. Request staff response, as appropriate.
D. Close public hearing.
III. Board deliberation to consider approval of the 2006 Ten -Year Capital
Improvement Plan, and approval of the Capital Improvement Budget for Fiscal
Year 2006 -07 for inclusion in the overall 2006 -07 District Budget.
NAENVRSEC \Position Papers \Chester\ 2006\ CIP- CIB_Headng_Agenda_May_2006.doc
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006 No.: 4.a. HEARINGS
Type of Action: CONDUCT A PUBLIC HEARING, APPROVE CIB /CIP
subject: CONDUCT A PUBLIC HEARING ON THE CAPITAL IMPROVEMENT
BUDGET (CIB) FOR FY 2006 -07, AND THE 2006 TEN -YEAR CAPITAL
IMPROVEMENT PLAN (CIP), APPROVE THE 2006 CIP, AND APPROVE THE CIB
FOR INCLUSION IN THE FY 2006 -07 DISTRICT BUDGET
Submitted By: Initiating Dept /Div.:
Gail Chesler, PhD Engineering /Environmental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
P I I'll )rlvbv
G Chesler . Schmidt V C. Swanson A. Farr II
General
ISSUE: The Board of Directors has established May 18, 2006 as the date for a public
hearing on the CIB for FY 2006 -07 and the 2006 Ten -Year Capital Improvement Plan
(CIP). Separate Board approval of the CIP and the CIB for inclusion in the FY 2006 -07
District Budget is requested.
RECOMMENDATION: Conduct a public hearing to receive comments on the CIB /CIP.
Approve the 2006 CIP. Approve the CIB for inclusion in the FY 2006 -07 District Budget.
FINANCIAL IMPACTS: Approval of the FY 2006 -07 CIB and 2006 CIP is a necessary
step prior to Board adoption. Approval will include an additional authorization of
$42,764,000 from the Sewer Construction Fund; resulting in a total FY 2006 -07 Board
authorized funding level of $71,375,000. This will allow expenditures to continue on the
District's Capital Improvement Program.
ALTERNATIVES /CONSIDERATIONS: Not applicable.
BACKGROUND: The CIP provides the basis for project prioritizing and scheduling,
staffing, and long -range financial planning. The CIP also provides the framework for
analyzing different capital program funding scenarios. The 2006 CIP covers the ten -
year period from FY 2006 -07 through FY 2015 -16. The plan includes expenditures
totaling $301 million (2006 dollars) over ten years.
The CIB provides a detailed presentation of the schedules and cost estimates for
projects proposed for the first year of the ten -year planning period. It also provides for
the Board's authorization of funds for FY 2006 -07 from the Sewer Construction Fund to
N: \ENVRSEC \Position Papers \Chesler\2006 \PublicHearing -FY 06 -07 CIB Imp Plan.DOC Page 1 Of 4
POSITION PAPER
Board Meeting Date: May 18, 2006
subiect: CONDUCT A PUBLIC HEARING ON THE CAPITAL IMPROVEMENT
BUDGET (CIB) FOR FY 2006 -07, AND THE 2006 TEN -YEAR CAPITAL
IMPROVEMENT PLAN (CIP), APPROVE THE 2006 CIP, AND APPROVE THE CIB
FOR INCLUSION IN THE FY 2006 -07 DISTRICT BUDGET
the Treatment Plant, Collection System, General Improvements, and Recycled Water
Programs.
A draft CIB /CIP was submitted to the Board of Directors on March 31, 2006. A special
meeting of the Board to discuss the draft was held on April 13, 2006. It is appropriate
for the Board to receive comments from the public prior to considering approval of the
CIB /CIP. The Board established May 18, 2006 as the date for a public hearing to
receive these comments and appropriate notices have been posted and published.
Capital Budget Authorization
Adoption of the CIB with the FY 2006 -07 District Budget will authorize additional funds
from the Sewer Construction Fund for planning, design, and construction of capital
improvement projects. The new funding authorization will include a carry-over of
approximately $28,611,000 from Board authorizations in previous years, and an
additional authorization of $42,764,000 from the Sewer Construction Fund resulting in a
total Fiscal Year 2006 -07 authorized funding level of $71,375,000.
It should be noted that specific Board approval is required for consultant agreements
over $50,000, for award of construction contracts over $15,000, for construction change
orders over $50,000, and for project overruns in excess of 15 percent (15 %) of the final
project budget established at the time of construction contract award. The distribution
of the funding authorization to the four capital improvement programs is shown on
Attachment 1. The estimated expenditures for the capital program in FY 2006 -07 are
also shown in Attachment 1 and total $34,752,000.
Ten -Year Capital Plan
The draft 2006 CIP includes $78.4 million (2006 dollars) for Treatment Plant projects
(26% of total expenditures), $186 million for Collection System projects (62% of total
expenditures), $31.7 million for General Improvements projects (11 % of total
expenditures), and $4.3 million for Recycled Water projects (1.4% of total expenditures)
over the next ten years. The expenditures recommended in the five -year Master Plan
for Information Technology have been incorporated in the General Improvements
Program in the 2006 CIP. A cash flow table is included in the Ten -Year Capital Plan
and indicates the revenue needed to support the planned ten -year expenditures. This
table includes the revenue from the proposed $9 rate increase. If this rate increase is
not adopted, the cash flow table will be corrected and reissued.
NAENVRSEC \Position Papers \Chesler\2006 \PublicHearing -FY 06 -07 CIB Imp Plan.DOC Page 2 Of 4
POSITION PAPER
Board Meeting Date: May 18, 2006
subject: CONDUCT A PUBLIC HEARING ON THE CAPITAL IMPROVEMENT
BUDGET (CIB) FOR FY 2006 -07, AND THE 2006 TEN -YEAR CAPITAL
IMPROVEMENT PLAN (CIP), APPROVE THE 2006 CIP, AND APPROVE THE CIB
FOR INCLUSION IN THE FY 2006 -07 DISTRICT BUDGET
Staff has evaluated the CIB and CIP and concluded that they are exempt from the
California Environmental Quality Act (CEQA) under CCCSD CEQA Guidelines Section
15262 since they are planning studies for possible future actions which CCCSD has not
approved, adopted or funded, and the outcome of these tasks will not have a legally
binding effect on later activities. Approval of the budget and plan will establish the
Board of Directors' independent finding that these documents are exempt from CEQA.
The Board further finds that CCCSD either has or will produce appropriate CEQA
compliance documentation prior to undertaking any "project" identified in these
documents.
RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comments on
the CIB and CIP. Approve the 2006 CIP. Approve the CIB for inclusion in the FY 2006-
07 District Budget.
NAENVRSEC \Position Papers \Chesler\2006 \PublicHearing -FY 06 -07 CIB Imp Plan.DOC Page 3 Of 4
ATTACHMENT 1
CAPITAL IMPROVEMENT BUDGET SUMMARY
FY 2006 -07
1 This number represents funds that have been authorized by the Board, allocated to
projects by the General Manager, but not spent during FY 2005 -06.
NAENVRSEC \Position Papers \Chester\ 2006 \CIP- CIB_HearingAttachmentl.doc
Page 4 of 4
Estimated
Additional
Total
Estimated
Program
Carryover
Authorization
Proposed
FY 2006 -07
from
FY 2005 -06
Requested
Authorization
Expenditures
Treatment Plant
$9,410,000
$6,685,000
$16,095,000
$9,691,000
Collection System
17,314,000
22,654,000
39,968,000
19,652,000
General
1,856,000
13,059,000
14,915,000
5,019,000
Improvements
Recycled Water
31,000
366,000
397,000
390,000
Total FY 2005 -06
$28,611,000
$42,764,000
$71,375,000
$34,752,000
1 This number represents funds that have been authorized by the Board, allocated to
projects by the General Manager, but not spent during FY 2005 -06.
NAENVRSEC \Position Papers \Chester\ 2006 \CIP- CIB_HearingAttachmentl.doc
Page 4 of 4
Item 4.a
2006 -07 Capital Improvements
Public Hearing
May 18, 2006
FY 2006 -07 Expenditure
Recommendations
EXPENDITURES
2006 -07
Collection System
$19,652,000
Treatment Plant
$9,691,000
General Improvements
$5,019,000
Recycled Water
$390,000
TOTAL EXPENDITURES
$34,752,000
FY 2006 -07 Capital Cash Flow Estimate
Capital Program Cash Flow
2006 -07
Total Projected Revenue
$38,788,000
Total Projected Expenditures
$34,752,000
Positive Variance
+$4,036,000
SCF Balance June 30, 2007
$60 M
FY 2006 -07 Revenue Projections
Revenues
2006 -07
Facility Capacity Fees
$9,369,000
Pumped Zone Fees
$2,417,000
Interest
$2,499,000
Ad Valorem Taxes
$7,243,000
City of Concord
$3,491,000
Sewer Service Charges $46 /RUE*
$7,479,000
Sewer Service Charges $30 /RUE **
$4,877,000
Other Fees & Charges
$1,413,000
Total Revenue
$38,788,000 El
'2005 -06 Capital Component
"2006-07 Added Capital Component
Capital Revenue /Expenditure Projections
Revenue
06 -07
07-08
08-09
09 -10
10 -11
11 -12
Facility Capacity /
Pumped Zone Fees
$11.8M
$9.3M
$9.5M
$6.9M
$6.4M
$5.2M
Ad Valorem Tax
$7.2M
$7.6M
$7.9M
$8.3M
$8.7M
$9.1 M
Sewer Service Charge
$12.4M
$5.9M
$6.7M
$7.1M
$7.5M
$8.2M
City of Concord
$3.5M
$5.4M
$3.4M
$3.3M
$3.5M
$2.8M
Other
$3.9M
$3.8M
$3.OM
$3.1 M
$2.8M
$2.8M
Total Revenue
$38.8M
$32.OM
$30.5M
$28.7M
$28.9M
$28.1M
Total Expenditures
$34.8M
$39.3M
$37.7M
$34.7M
$33.8M
$32.1M
Variance
$ +4M
$ -7M
$ -7M
$-6M
$-5M
$-4M
Sewer Construction
Funds
$61M
$53M
$46M
$40M
$35M
$31 M
FY 2006 -07 Expenditure
Recommendations
EXPENDITURES
2006 -07
Collection System
$19,652,000
Treatment Plant
$9,691,000
General Improvements
$5,019,000
Recycled Water
$390,000
TOTAL EXPENDITURES
$34,752,000
2006 -07 Expenditures
Collection System Program
PROJECT
2006 -07
Expenditures
Total
Project Cost
Concrete Corrosion M3
$2,650,000*
$2,985,000
North Orinda Renovation — Phase 2
$2,300,000*
$2,490,000
Alhambra Valley Trunk Sewer
$1,510,000
$2,275,000
M4 -A Force Main Replacement
$1,415,000*
$2,347,000
Walnut Creek Renovations — Phase 4
$1,379,000*
$1,529,000
Danville Sewer Renovations — Phase 1
$1,200,000
$1,365,000
Concrete Corrosion Minert/Arkell
$1,186,000*
$1,186,000
Concrete Corrosion Saint Mary's
$1,070,000*
$1,070,000
Total Collection System Projects <$1,000,000
$6,942,000
NA
Total Collection System Program
* Awarded in late FY 2005 -06
$19,652,000
NA
2006 -07 Expenditures
Treatment Plant Program
PROJECT
2006 -07
Expenditures
Total
Project Cost
Ultraviolet Disinfection Expansion
$1,700,000*
$4,584,000
Plant Control System Improvements
$1,000,000
$2,641,000
Standby Power Facility Improvements
$1,000,000
$1,500,000
POD HVAC and Roof Improvements
$900,000*
$1,000,000
Chemical Feed Building Renovation
$900,000*
$1,025,000
Service Air Improvements
$800,000*
$1,055,000
Total Treatment Plant Projects < $800,000
$3,391,000
NA
Total Treatment Plant Program
* Awarded in late FY 2005 -06
$9,691,000
NA
2006 -07 Expenditures
General Improvements Program
PROJECT
2006 -07
Expenditures
Total
Project Cost
HOB HVAC and Roof Improvements
$1,003,000
$1,636,000
Equipment Budget
$1,000,000
NA
CSOD Cal Trans Site Improvements
$800,000
1,000,000
CSOD Facility Improvements
$800,000
$10,608,000
Information Technology Development *
$450,000
NA
Total General Improvements Projects < $250,000
$966,000
NA
Total General Improvements Program
$5,019,000
NA
* Discussion to follow
Capital Improvement Budget Summary for
FY 2006 -07
Estimated
Estimated
Estimated
Total
Program
FY 2006.07
Carry-over from
Allocation
FY 2006.07
Program
Prior Fiscal Year
FY 2006.07
Proposed
Expenditures
Authorization
Treatment Plant
$9,691,000
$9,410,000
$6,685,000
$16,095,000
Collection System
$19,652,000
$17,314,000
$22,654,000
$39,968,000
General
$5,019,000
$1,856,000
$13,059,000
$14,915,000
Improvements
Recycled Water
$390,000
$31,000
$366,000
$397,000
Total this Fiscal Year
$34,752,000
$28,611,000
$42,764,000
$71,375,000
Board Role in Capital Program is Ongoing
-Authorize Program Budgets each fiscal year
-Authorize Supplemental Program Funds if needed
-Award Construction Projects > $15,000
-Authorize Construction Change Orders >$50,000
-Authorize Consultant Contracts > $50,000
-Authorize Revisions to Consultant Contracts > 15%
C1
PUBLIC HEARING TO RECEIVE COMMENTS
ON A PROPOSED ORDINANCE TO
ESTABLISH A REIMBURSEMENT FEE FOR JOB 5738
SUGGESTED AGENDA
MAY 18, 2006
I. Request staff presentation.
II. Public Hearing:
A. Receive public comments.
B. Request staff response, as appropriate.
C. Close Public Hearing.
Ill. Board deliberation regarding proposed ordinance to establish a
reimbursement fee for Job 5738.
NAENVRSEMPosition Papers \Penny\2006Wdopt Ordinance PP 5738 5- 06.doc
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006 No.: 4.b. HEARINGS
Type of Action: CONDUCT HEARING; ADOPT ORDINANCE
subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON A
PROPOSED ORDINANCE TO ESTABLISH REIMBURSEMENT FEES TO
APPLICABLE PROPERTIES WHICH COULD CONNECT TO JOB 5738
Submitted By: Initiating Dept. /Div.:
Michael J. Penny, Associate Engineer Engineering /Environmental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
y ti
r
M. ny J. yamoto Mills I C. Manson A. Farr arie B
General Mana er
ISSUE: When a reimbursement fee is proposed for a property that could directly
connect to a "standard facility," the District Code requires that a public hearing be held
prior to the Board of Directors' consideration of the fee for adoption.
RECOMMENDATION: Conduct a public hearing to receive comments on the proposed
Ordinance to establish reimbursement fees applicable to property that could directly
connect to the sewer installed under Job 5738. Adopt the Ordinance.
FINANCIAL IMPACTS: An administrative charge to recover District costs is paid by the
installer for setup of the reimbursement account and for each fee collection transaction.
ALTERNATIVES /CONSIDERATIONS: Not applicable.
BACKGROUND: Job 5738 is a "standard facility," as defined in the District Code. A
certain individual property owner within the boundary of the project area is the installer
of this facility. To fairly and equitably distribute the cost for this facility, the District Code
provides for the installer to be reimbursed for the proportion of cost allocable to other
properties which connect to the sewers within 20 years of project acceptance by the
District. Staff has drafted a proposed Ordinance (Attachment 1) to establish
reimbursement fees for properties that connect to this project's sewer. Exhibit A of
Attachment 1 shows the location of the project and the properties that could directly
connect to the project sewer. The proposed reimbursement fee will be collected from
property owners, if and when they connect their property to the subject sewer. The
collected fee will be held in a separate account, and disbursed to the installer of the
project.
Calculations of the proposed reimbursement fee are summarized in Exhibit B of
Attachment 1. The fee would be charged in addition to Capacity Fees and other District
charges, such as those for permits, inspection, and sewer service.
N: \ENVRSEC \Position Papers \Penny\2006\Adopt Ordinance PP 5738 5- 06.doc Page 1 of 6
POSITION PAPER
Board Meeting Date: May 18, 2006
subject. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON A
PROPOSED ORDINANCE TO ESTABLISH REIMBURSEMENT FEES TO
APPLICABLE PROPERTIES WHICH COULD CONNECT TO JOB 5738
The District Code requires that reimbursement fees be adjusted at least annually to
account for the increase or decrease in value of the facilities due to inflation and
depreciation. These fees may also be adjusted to account for differences between
estimated and actual costs, and increases or decreases in the number of connections
that may connect to the facilities. However, once a particular property has connected to
the public sewer, and the fees have been paid, the District will not collect any additional
reimbursement fees for that connection, nor refund any excess reimbursement fees
which might otherwise be occasioned by these adjustments. Appropriate notices have
been posted, and published in the Contra Costa Times. In addition, individual letter
notices were mailed to the owners of all affected properties, as required by District
Code.
RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comments on
the proposed ordinance to establish the reimbursement fee for applicable properties
that could directly connect to the sewer installed under Job 5738. Adopt the ordinance.
NAENVRSEMPosition Papers \Penny\2006\Adopt Ordinance PP 5738 5- 06.doc Page 2 of 6
ATTACHMENT 1
ORDINANCE NO. (UNCODIFIED)
AN ORDINANCE (UNCODIFIED) TO ESTABLISH REIMBURSEMENT FEE
APPLICABLE TO PROPERTIES THAT DIRECTLY CONNECT TO JOB 5738
(SOUTH AVENUE, ALAMO) STANDARD SEWER FACILITIES
WHEREAS, the Central Contra Costa Sanitary District (District) Code Chapter 6.20
provides for reimbursement to installers of standard and special facilities from fees
charged property owners when they apply to connect their property to the public sewer
system; and
WHEREAS, District Code Chapter 6.20 provides for the establishment of
reimbursement accounts for constructed standard and special facilities; and
WHEREAS, Job 5738 sewers, the locations of which are shown in Exhibit A of this
ordinance, incorporated in full herein by this reference, are standard facilities as defined
in District Code Chapter 6.20; and
WHEREAS, reimbursement fees have been calculated by the method specified in
District Code Chapter 6.20, which calculations are summarized in Exhibit B of this
Ordinance, incorporated in full herein by this reference; and
WHEREAS, a properly noticed public hearing to receive comments on the proposed
reimbursement fee was conducted at the District Board of Directors' regularly scheduled
meeting on May 18, 2006,
NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary
District does ordain as follows:
Section 1
The reimbursement fee applicable to properties that directly connect to Job 5738
standard sewer facilities, designated in Exhibit A are hereby established. Said
reimbursement fee has been calculated in the manner required by District Code
Chapter 6.20, as set forth in Exhibit B of this ordinance.
NAENVRSEMPosition Papers \Penny\2006Wdopt Ordinance PP 5738 5- 06.doc Page 3 of 6
Section 2
The reimbursement fees set forth in Exhibit B of this ordinance shall be
administered, adjusted, and collected according to the provisions of District Code
Chapter 6.20.
Section 3
Exhibits A and B hereto shall be maintained in the office of the Secretary of the
District, and made available for inspection during the periods when the subject
reimbursement fee is in effect.
Section 4
This ordinance shall be a general regulation of the District and shall be published
once in the Contra Costa Times, a newspaper of general circulation within the
District, and shall be effective on the eighth calendar day following such
publication.
PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa
Sanitary District on the 18th day of May 2006, by the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
President of the Board of Directors,
Central Contra Costa Sanitary District
County of Contra Costa, State of California
COUNTERSIGNED: APPROVED AS TO FORM:
Secretary of the District Kenton L. Alm, Counsel for the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California
NAENVRSEC \Position Papers \Penny\2006Wdopt Ordinance PP 5738 5- 06.doc Page 4 Of 6
Legend
EXHIBIT A
198081005
Potential Connectors -
No. of RUE's
AInstaller - No. of RUE's N
- -�-- Project 5698 facilities
N: \ENVRSEC \Position Papers\Penny\2006\Adopt Ordinance PP 5738 5- 06.doc Page 5 Of 6
EXHIBIT B
REIMBURSEMENT FEE CALCULATION
JOB 5738, SOUTH AVENEUE, ALAMO
"Standard Facilities" Reimbursable Costs:
Construction
$41,070.33
Engineering
11,363.25
District Fees
3,758.00
Total
$56,191.58
Number of Potential Connections to "Standard Facility ":
2 Residential Unit Equivalents (RUE)
"Standard Facility" Reimbursement per RUE:
$56,191.58 / 2 RUE = $28,095.79
Properties to which Standard Facility Reimbursement Fee may apply:
Street Address
Assessors Parcel
Number
Number of
RUE's
Installer
Waive
Fee
Potential
Fee
181 South Avenue
198 - 081 -006
1
Yes
N/A
No
165 South Avenue
198- 081 -005
1
No
No
Yes
NAENVRSEMPosition PapersTenny\20MAdopt Ordinance PP 5738 5- 06.doc Page 6 Of 6
Item 4.b
PROPOSED ORDINANCE
TO ESTABLISH
REIMBURSEMENT
ACCOUNT
CCCSD Board Meeting
May 18, 2006
Item 4.b
Public Hearing for Reimbursement Account
5/18/2006
1. Hearing set on 4/20/2006
2. All Parties Notified by Mail — Sent 5/2/2006
3. Notice of Hearing was advertised on 5/3/2006 in the CC Times
4. Locations and Project Details
a. Job 5738, South Avenue, Alamo (Aerial photo with parcels and sewer
highlighted)
i. 324 ft. of 8 -inch sewer
ii. Total Allowable Costs - $56,191.58
1. District Fees - $3758.00
2. Engineering - $11,363.25
3. Construction - $41,070.33
iii. 2 Parcels — 1 Installers
iv. Reimbursement per parcel - $28,095.79
v. Installer inquired what would happen if potential connector split lot
before connecting. Informed them we would recalculate fee per
RUE based on new total potential connections.
5. Questions
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006 No.: 6.a. BIDS AND AWARDS
Type of Action: AWARD CONTRACT
Subject: AWARD A CONSTRUCTION CONTRACT TO ENGINEERED SOIL
REPAIRS, INC., THE LOWEST RESPONSIVE BIDDER, FOR THE
RECONSTRUCTION OF SLOPE AT 178 HALL DRIVE, DISTRICT PROJECT
NO. 5868
Submitted By: Initiating Dept /Div.:
Dana Lawson, Associate Engineer Engineering / Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
fole— 10 op 0or
D. Lawson TPTe cki A. F rell
General
ISSUE: On May 9, 2006, sealed bids were received and opened for the Reconstruction
of Slope at 178 Hall Drive, District Project No. 5868. The Board of Directors must
authorize award of the contract or reject bids within 50 days of the bid opening.
RECOMMENDATION: Award of a construction contract and authorize the General
Manager to execute the Contract Documents.
FINANCIAL IMPACTS: Approximately $137,500, including design, bid price,
contingency, and construction management.
ALTERNATIVES /CONSIDERATIONS: Reject all bids, which is not recommended.
BACKGROUND: In the spring of 2005, the Collection System Operations Division was
notified by a homeowner of a slide that appeared to be caused by a manhole
overflowing behind her property. The spill was immediately cleaned up and a
geotechnical consultant was retained to assess the condition of the slope and propose
a repair. Since the slide occurred in a creek area, permits have been acquired from
both the Department of Fish and Game and the San Francisco Regional Water Quality
Control Board ( RWQCB). The RWQCB required an ecological reconstruction of the
slope, and specifically required revegetation with native woody plants. The design
accommodates these requirements through the use of geocells filled with earth and
native plants.
District staff prepared the plans and specifications for the project. The Engineer's
estimate for construction of Reconstruction of Slope at 178 Hall Drive is $75,000. This
prebid project was advertised on April 18 and 26, 2006. Three (3) sealed bids ranging
from $77,357 to $150,000 were received and publicly opened on May 9, 2006. The
Engineering Department conducted a technical and commercial review of the bids and
N: \PESUP \Cbradley \Position Papers \2006 \May \5868 - Notice of Award PP.doc Page 1 of 5
POSITION PAPER
Board Meeting Date: May 18, 2006
subject: AWARD A CONSTRUCTION CONTRACT TO ENGINEERED SOIL
REPAIRS, INC., THE LOWEST RESPONSIVE BIDDER, FOR THE
RECONSTRUCTION OF SLOPE AT 178 HALL DRIVE, DISTRICT PROJECT
NO. 5868
determined that Engineered Soil Repairs, Inc. is the lowest responsive bidder with a bid
amount of $77,357. A summary of bids received is shown in Attachment 2.
The District will administer the construction contract and will provide contract
administration, inspection, survey, office engineering, and submittal review. The
additional allocation of funds required to complete this project, as shown in
Attachment 3, are $112,500. The total cost of Reconstruction of Slope at 178 Hall
Drive is anticipated to be $137,500.
This project was initiated as a component project of the Collection System Urgent
program in the Capital Improvement Budget (CIB) for FY 2005 -2006, which is described
on pages CS -43 and 44. The full project is included in the draft (CIB) for FY 2006 -2007
on page CS -54. Staff has conducted a cash flow analysis of the Collection System
Program authorization and concluded that adequate funds are available for this project.
Staff has concluded that this project is exempt from the California Environmental
Quality Act (CEQA) under CCCSD CEQA Guidelines Section 15302 since it involves
reconstruction of an existing facility at substantially the same location and with the
same purpose and level of activity as the facility being replaced. Approval of this
project will establish the Board of Directors' independent finding that this project is
exempt from CEQA.
RECOMMENDED BOARD ACTION: Award of a construction contract in the amount of
$77,357 for the construction of the Reconstruction of Slope at 178 Hall Drive, District
Project No. 5868, to Engineered Soil Repairs, Inc., the lowest responsive bidder, and
authorize the General Manager to execute the Contract Documents.
WPESUP\cbradley \Position Papers\2006 \May \5868 - Notice of Award PP.doc Page 2 of 5
.. . ....... ..........
.........
. . . .......... .
QUEENSBROOK
PLACE
LOCATION MAP
N.T.S.
A I
2.1631:104111
N
. .......... 4t
. ... ......
. .. ..........
...... .........
j
........ .............
.... . ... ........ .... ........
......... . .
.... .....
... ....... i ...........
0
FEEr
Central Contra Costa Drawing No.
Sanitary District
RECONSTRUCTION OF SLOPE
@ 178 HALL DR, ORINDA CA.
RIM
Page 3 of 5
ATTACHMENT 2
RECONSTRUCTION OF SLOPE AT 178 HALL DRIVE
DISTRICT PROJECT NO. 5868
SUMMARY OF BIDS
Project No.: 5868 Date: May 9, 2006
Project Name: Reconstruction of Slope at 178 Hall Drive
Location: 178 Hall Drive, Orinda Engineer's Est.: $75,000
No
BIDDER
(Name and Address)
BID PRICE
1
Engineered Soil Repairs, Inc.
$77,357
2
Oracle Landscape
$108,000
3
Templeton Engineering Contractors
$150,000
BIDS OPENED BY /s/ Elaine Boehme
DATE May 9, 2006 SHEET NO. 1 OF 1
N: \PESUP \Cbradley \Position Papers \2006 \May \5868 - Notice of Award PP.doc Page 4 of 5
ATTACHMENT 3
RECONSTRUCTION OF SLOPE AT 178 HALL DRIVE
DISTRICT PROJECT NO. 5868
POST -BID / PRECONSTRUCTION ESTIMATE
Percent of
Estimated
Construction
No. Item Description Amount Cost
1 CONSTRUCTION
a. Construction Contract $77,357
b. Contingency at 20% $15,643
TOTAL CONSTRUCTION $93,000
2 CONSTRUCTION MANAGEMENT
100%1
a. District Forces
- Construction Management and Inspection
$38,500
SUBTOTAL
$38,500
41%
b. Consultants
- Construction Support Services - Geotech
$1,000
SUBTOTAL
$1,000
1%
TOTAL CONSTRUCTION MANAGEMENT
$39,500
42%
3 TOTAL CONSTRUCTION PHASE COST
$132,500
142%
4 TOTAL PREBID EXPENDITURES
$5,000
5%
5 TOTAL DESIGN AND CONSTRUCTION MANAGEMENT COST
$44,500
48%
6 TOTAL ESTIMATED PROJECT COST
$137,500
148%
7 FUNDS AUTHORIZED TO DATE
$25,000
8 ADDITIONAL ALLOCATION NEEDED TO COMPLETE PROJECT
$112,500
N: \PESUP \Cbradley \Position Papers \2006 \May \5868 - Notice of Award PP.doc Page 5 of 5
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006 No.: 6.b. BIDS AND AWARDS
Type of Action: AWARD CONTRACT
subject: AWARD A CONSTRUCTION CONTRACT TO D'ARCY & HARTY
CONSTRUCTION, THE LOWEST RESPONSIVE BIDDER, FOR THE DANVILLE
SEWER RENOVATIONS PROJECT, PHASE 1, DISTRICT PROJECT NO. 5758
Submitted By: Initiating Dept /Div.:
Paul Seitz, Associate Engineer Engineering / Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
Pik/_y — (0 �10D
P. Seitz A. Rozul i ecki
General
ISSUE: On May 3, 2006, sealed bids were received and opened for the construction of
the Danville Sewer Renovations Project, Phase 1, District Project No. 5758. The Board
of Directors must authorize award of the contract or reject bids within 50 days of the bid
opening.
RECOMMENDATION: Award a construction contract and authorize the General
Manager to execute the Contract Documents.
FINANCI L IMPACTS: The allocation required complete the project is $1,510,600,
including design, bid price, contingency, and construction management.
ALTERNATIVES /CONSIDERATIONS: Reject all bids, which is not recommended.
BACKGRIOUND: The District's over 1,500 -mile collection system has pipe segments
that range in age from new to over 100 years. In 1991, the District implemented an
aggressive sewer renovation program to address problem pipes. Since that time, an
annual allowance for this program has been included in the Capital Improvement
Budget and Plan. The Collection System Renovation Program is an ongoing series of
projects. Candidate sewer line segments are identified, evaluated, and placed on a
priority list for replacement/renovation. Staff of the Collection System Operations
Division and Engineering Department identifies the candidate sewer lines.
The Danville Sewer Renovations Project, Phase 1 will renovate 4,900 linear feet of
6- and 8 -inch sewer lines in the Town of Danville (see Attachment 1 for map).
Construction of the sewers in easements will involve close cooperation with customers
for site access and restoration.
District stuff prepared the plans and specifications for the project. The Engineer's
estimate for construction of the Danville Sewer Renovation Project, Phase 1 is
N: \PESUP \Cbradley \Position Papers\2006 \May \5758 - Notice of Award PP.doc Page 1 of 5
POSITION PAPER
Board Meeting Date: May 18, 2006
subject: AUTHORIZE AWARD OF CONSTRUCTION CONTRACT TO D'ARCY &
HARTY CONSTRUCTION, THE LOWEST RESPONSIVE BIDDER, FOR THE
DANVILLE SEWER RENOVATION PROJECT, PHASE 1, DISTRICT PROJECT
NO. 5758
$1,300,000. This project was advertised on April 13 and April 18, 2006. Six (6) sealed
bids ranging from $1,077,007 to $1,786,497 were received and publicly opened on
May 3, 2006. The Engineering Department conducted a technical and commercial
review of the bids and determined that D'arcy & Harty Construction is the lowest
responsive bidder with a bid amount of $1,077,007. A summary of bids received is
shown in Attachment 2.
The District will administer the construction contract and will provide contract
administration, inspection, survey, office engineering, and submittal review. The funds
required to complete this project, as shown in Attachment 3, are $1,510,600. The total
cost of the Danville Sewer Renovation Project, Phase 1 is anticipated to be $1,650,558.
This project is included in the fiscal year 2005 -2006 Capital Improvement Budget (CIB)
on pages CS -14 and in the draft CIB for FY 2006 -07 on page CS -16. Staff has
conducted a cash flow analysis of the Collection System Program authorization and
concluded that adequate funds are available for this project.
Staff has concluded that this project is exempt from the California Environmental
Quality Act (CEQA) under CCCSD CEQA Guidelines Section 15302 since it involves
replacement of existing facilities at substantially the same location and with the same
purpose and level of activity as the facility being replaced. Approval of this project will
establish the Board of Directors' independent finding that this project is exempt from
CEQA.
RECOMMENDED BOARD ACTION: Award a construction contract in the amount of
$1,077,007 for the construction of the Danville Sewer Renovations Project, Phase 1,
District Project No. 5758, to D'arcy & Harty Construction, the lowest responsive bidder,
and authorize the General Manager to execute the Contract Documents.
N: \PESUP \Cbradley \Position Papers \2006 \May \5758 - Notice of Award PP.doc Page 2 of 5
0
. ... ...... ..... .. I ....... .....
N
:0
SEWER RENOVATIONS
FEET
7-71 Sanitary District I DANVILLE SEWER RENOVATIONS
PHASE 1
CCCSD DP 5758
Drawing No.
Page 3 of 5
ATTACHMENT 2
DANVILLE SEWER RENOVATIONS, PHASE 1
DISTRICT PROJECT NO. 5758
SUMMARY OF BIDS
Project No.: 5758 Date: May 3, 2006
Project Name: Danville Sewer Renovation Project, Phase 1
Location: CCCSD Board Room Engineer's Est.: $1,300,000
No
BIDDER
(Name & address)
BID PRICE
1
D'arcy & Harty Construction
$1,077,007
2
California Trenchless Inc.
$1,250,490
3
McGuire and Hester
$1,129,766
4
McNamara and Smallman
$1,162,520
5
Talus Construction
$1,786,497
6
Pacific Trenchless
$1,248,290
BIDS OPENED BY Elaine Boehme DATE May 3, 2006 SHEET NO. 1 OF 1
N: \PESUP \Cbradley \Position Papers \2006 \May \5758 - Notice of Award PP.doc Page 4 of 5
ATTACHMENT 3
DANVILLE SEWER RENOVATION PROJECT, PHASE 1
DISTRICT PROJECT NO. 5758
POST -BID / PRECONSTRUCTION ESTIMATE
No. Item Description
1 CONSTRUCTION
a. Construction Contract
b. Contingency at 15%
c. Permits
TOTAL CONSTRUCTION
2 CONSTRUCTION MANAGEMENT
a. District Forces
- Construction Management
- Construction Administration and Inspection
- Project Engineering
- Community Relations
- Survey
SUBTOTAL
b. Consultants
- Construction Support Services - Arborist, Material Testing and Geotech
SUBTOTAL
TOTAL CONSTRUCTION MANAGEMENT
3 TOTAL CONSTRUCTION PHASE COST
4 TOTAL PREBID EXPENDITURES
5 TOTAL DESIGN AND CONSTRUCTION MANAGEMENT COST
6 TOTAL ESTIMATED PROJECT COST
7 FUNDS AUTHORIZED TO DATE
8 ADDITIONAL ALLOCATION NEEDED TO COMPLETE PROJECT
Percent of
Estimated
Construction
Amount Cost
$1,077,007
$161,551
$5,000
$1,243,558
$31,000
$105,000
$13,000
$13,000
$10,000
$172,000
$25,000
$25,000
$197,000
$1,440,558
$210,000
$407,000
$1,650,558
$140,000
$1,510,600
WPESUP\Cbradley \Position Papers \2006 \May \5758 - Notice of Award PP.doc Page 5 of 5
100%1
14%1
2%
16%
116%
17%
33%
133%
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006 No.: 6.c. BIDS AND AWARDS
Type of Action: AWARD CONTRACT
Subject: AWARD A CONSTRUCTION CONTRACT TO INSITUFORM
TECHNOLOGIES, INC., THE LOWEST RESPONSIVE BIDDER, FOR THE 2006
CURED -IN -PLACE PIPE (CIPP), DISTRICT PROJECT NOS. 5956, 5957, AND 5959
Submitted By: Initiating Dept. /Div.:
Nathaniel Morales, Staff Engineer Engineering / Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
M— — 64�f') — X7�--
N. Morales T. Godsey cki A. Farrell Charles atts
General Manag r
ISSUE: On May 5, 2006 sealed bids were received and opened for the construction of
the 2006 CIPP, District Project Nos. 5956, 5957, and 5959. The Board of Directors
must authorize award of the contract or reject bids within 50 days of the bid opening.
RECOMMENDATION: Award a construction contract and authorize the General
Manager to execute the Contract Documents.
FINANCIAL IMPACTS: Approximately $6,275,000 including design, bid price,
contingency, and construction management.
ALTERNATIVES /CONSIDERATIONS: Reject all bids, which is not recommended.
BACKGROUND: In 2001 a separate District project investigated large and medium
diameter, reinforced concrete pipe (RCP) using Closed Circuit Televising to determine
the levels of corrosion that existed. In several reaches of pipe, it was clear that some
remedial action must be taken, the first of which was an immediate emergency repair of
about 50 feet of RCP pipe on Camino Pablo in Orinda. The remaining televised
segments were ranked according to corrosion severity; the heavily corroded were
scheduled for rehabilitation while the moderate to lightly corroded segments were
placed on a crown spraying cycle. The first of the heavily corroded segments to be
rehabilitated took place in 2003 and 2005 when about 9,500 feet of segmental slipliner
was installed in Contra Costa Boulevard.
The 2006 CIPP project aims to rehabilitate the remaining heavily corroded RCP
segments identified in the 2001 study by installing approximately 21,000 linear feet of
CIPP in existing 21 -inch to 36 -inch wastewater lines. The project has four sites: (1) the
M3 line along Waterbird Way in Martinez; (2) Saint Mary's College and along the
Lafayette- Mo raga Regional Trail in Moraga; (3) Minert Road and Arkell Road in Walnut
Creek; and (4) Camino Pablo at Orinda Crossroads Pumping Station in Orinda (see
Attachments 1 and 2 for locations).
N: \PESUP \Cbradley \Position Pape rs\2006\M ay\5957 - Notice of Award PP.doc Page 1 of 6
POSITION PAPER
Board Meeting Date: May 18, 2006
Subject: AWARD A CONSTRUCTION CONTRACT TO INSITUFORM
TECHNOLOGIES, INC., THE LOWEST RESPONSIVE BIDDER, FOR THE 2006
CIPP, DISTRICT PROJECT NOS. 5956, 5957, AND 5959
Extensive community outreach has taken place during the design phase of the 2006
CIPP project. Community meetings were held for the St. Mary's and Minert- Arkell sites,
District staff met with Saint Mary's College, Acme Landfill, and the City of Walnut
Creek. A meeting was held with the East Bay Regional Park District (EBRPD) to
discuss impacts on the Lafayette - Moraga Regional Trail and its patrons. Preliminary
Encroachment Permits were obtained from the Cities of Moraga, Lafayette, Orinda,
Walnut Creek, and also Contra Costa County and EBRPD.
District staff prepared the plans and specifications for the project. The Engineer's
estimate for construction of the 2006 CIPP is $5,800,000. This project was advertised
on April 17, 2006 and April 24, 2006. One (1) sealed bid of $4,956,576 was received
and publicly opened on May 5, 2006. The Engineering Department conducted a
technical and commercial review of the bids and determined that Insituform
Technologies, Inc. is the lowest responsive bidder with a bid amount of $4,956,576. A
summary of bids received is shown in Attachment 3.
The District will administer the construction contract and will provide contract
administration, inspection, survey, office engineering, and submittal review. The funds
required to complete this project, as shown in Attachment 4, are $6,195,000. The total
cost of 2006 CIPP is anticipated to be $6,275,000.
This project is included in the fiscal year 2005 -2006 Capital Improvement Budget (CIB)
on pages CS 23- 24 and in the draft 2006 -07 CIB on pages CS 35 -40. Funding has
been advanced for an early start to these four projects as part of an additional
authorization of funds to the Collection System program made by the Board at a special
meeting on April 13, 2006. Sufficient allocatable funds are, therefore, available for
award of this contract.
Staff has concluded that this project is exempt from the California Environmental
Quality Act (CEQA) under CCCSD CEQA Guidelines Section 15302 since it involves
reconstruction of an existing facility at substantially the same location and with the
same purpose and level of activity as the facility being replaced. Approval of this
project will establish the Board of Directors' independent finding that this project is
exempt from CEQA.
RECOMMENDED BOARD ACTION: Award a construction contract in the amount of
$4,956,576 for the construction of the 2006 CIPP, District Project Nos. 5956, 5957,
5959, to Insituform Technologies, Inc., the lowest responsive bidder, and authorize the
General Manager to execute the Contract Documents.
N: \PESUP \Cbradley \Position Papers \2006 \May \5957 - Notice of Award PP.doc Page 2 of 6
Central Contra Costa
Sanitary District
I F1
Page 4 of 6
ATTACHMENT 3
2006 CIPP
DISTRICT PROJECT NOS. 5956, 5957, AND 5959
SUMMARY OF BIDS
Project No.: 5956, 5957, and 5959 Date: May 18, 2006
Location: Martinez, Mora a, Orinda and Walnut Creek
Project Name: 2006 CIPP Engineer's Est.: $5,800,000
No
BIDDER
BID PRICE
(Name & address)
WESCO Infrastructure Technologies, L.P.
1
20100 S. Western Avenue
(no bid)
Torrance, CA 90501
Insituform Technologies, Inc
2
5100 East 2nd St
$4,956,576
Benicia, CA 94510
3
4
5
6
BIDS OPENED BY: /s/ Elaine Boehme
DATE: May 5, 2006 SHEET NO. 1 OF 1
N: \PESUP \Cbradley \Position Papers \2006 \May \5957 - Notice of Award PP.doc Page 5 of 6
ATTACHMENT 4
2006 CIPP
DISTRICT PROJECT NOS. 5956, 5957, AND 5959
POST -BID / PRECONSTRUCTION ESTIMATE
No. Item Description
1 CONSTRUCTION
a. Construction Contract
b. Contingency at 15%
TOTAL CONSTRUCTION
2 CONSTRUCTION MANAGEMENT
Project Management
Contract Administration
Project Inspection
SUBTOTAL
Office Engineering
Record Drawings
Collection System Operations /Pumping Stations
Permits /Inspection by Others
Materials Testing
Public Relations
SUBTOTAL
TOTAL CONSTRUCTION MANAGEMENT
3 TOTAL CONSTRUCTION PHASE COST
4 TOTAL PREBID EXPENDITURES
5 TOTAL DESIGN AND CONSTRUCTION MANAGEMENT COST
6 TOTAL ESTIMATED PROJECT COST
7 FUNDS AUTHORIZED TO DATE
8 ADDITIONAL ALLOCATION NEEDED TO COMPLETE PROJECT
Percent of
Estimated
Construction
Amount Cost
$4,956,576
$743,424
$5,700,000
$75,000
$75,000
$270,000
$420,000
$10,000
$5,000
$15,000
$25,000
$5,000
$15,000
$75,000
$495,000
$6,195,000
$80,000
$575,000
$6,275,000
$80,000
$6,195,000
N: \PESUP \Cbradley \Position Papers \2006 \May \5957 - Notice of Award PP.doc Page 6 of 6
100%1
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Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006 No.: 8.a. ENGINEERING
Type of Action: ADOPT RESOLUTION
Subject: ADOPT A RESOLUTION ON A POLICY REGARDING THE PROVISION OF
WASTEWATER COLLECTION, TREATMENT AND DISPOSAL SERVICES TO
RESIDENTIAL DEVELOPMENTS WITH AFFORDABLE HOUSING UNITS
Submitted By: Initiating Dept /Div.:
Russell B. Leavitt Engineering /Environmental Services Division
Engineering Assistant III
REVIEWED AND RECOMMENDED FOR BOARD ACTION. 4
C R. Leavitt C. Swanson A. Farr I Charles . Batt
General Mana r
ISSUE: State law requires Board approval of a written policy regarding the provision of
wastewater utility services to residential developments with affordable housing units.
RECOMMENDATION: Adopt the attached resolution on a policy regarding the
provision of wastewater collection, treatment, and disposal services to residential
developments with affordable housing units.
FINANCIAL IMPACTS: No impact.
ALTERNATIVES /CONSIDERATIONS: Reject or defer adoption of the resolution.
Since CCCSD must comply with State law, if the resolution is not adopted, direction
should be given to staff as to which aspects of the proposed policy require further
consideration before being returned to the Board.
BACKGROUND: Government Code Section 65589.7 (SB 1087, 2005) requires public
agencies to adopt a written policy giving public sewer services priority to proposed
housing developments that help meet the regional need for lower income housing. The
law also generally bars denial or the limitation of services solely because a proposed
development includes affordable housing. This written policy must be adopted on or
before July 1, 2006, re- adopted at least once every five years thereafter, and must
contain specific objective standards for the provision of wastewater service. If
approved, a capacity /demand report will be prepared within six months for Board
acceptance
RECOMMENDED BOARD ACTION: Adopt the attached resolution on a policy
regarding the provision of wastewater collection, treatment, and disposal services to
residential developments with affordable housing units.
N: \ENVRSEC \Position Papers \Leavitt \SB 1087 Adopt Resolution Adopting Policy 5- 18- 06.doc Page 1 of 6
RESOLUTION NO. 2006-
A RESOLUTION ADOPTING A POLICY REGARDING THE PROVISION OF
WASTEWATER COLLECTION, TREATMENT AND DISPOSAL SERVICES TO
RESIDENTIAL DEVELOPMENTS WITH AFFORDABLE HOUSING UNITS
WHEREAS, the Central Contra Costa Sanitary District ( CCCSD) is committed to
the fair and equitable provision of wastewater collection, treatment, and disposal
services to persons and entities within its jurisdiction, in conformity with state law and
the District Code; and
WHEREAS, Government Code Section 65589.7 requires CCCSD to adopt a
written policy (i) granting or providing priority for the provision of public sewer services
to proposed housing developments that help meet the regional need for lower income
housing, and (ii) barring the denial or the conditioning of approval of an application for
services or reducing the amount of the services applied for, solely because a proposed
development includes affordable housing components, except in limited circumstances.
BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary
District as follows:
1. That the "Central Contra Costa Sanitary District Policy Regarding the
Provision of Service to Residential Developments with Affordable Housing Units," a
copy of which is attached hereto, is hereby approved and adopted.
2. That CCCSD's Policy shall govern the manner in which wastewater
collection, treatment, and disposal services are provided to proposed residential
housing developments within CCCSD's jurisdiction that address the needs of lower
income households.
3. That within six months of the initial approval of this policy, and at least
once every five years thereafter, CCCSD shall prepare a report for acceptance by the
Board of Directors identifying such factors as the available collection, treatment and
disposal capacity, anticipated demand for sewer services from lower income
households, the necessary steps needed to address capacity shortfalls, and any
necessary changes to the policy adopted by this resolution.
4. That each portion of this resolution is severable. Should any portion of
this resolution be adjudged to be invalid and unenforceable by a body of competent
jurisdiction, then the remaining resolution portions shall be and continue in full force and
effect.
Page 2 of 6
N: \ENVRSEC \Position Papers \Leavitt\SB 1087 Adopt Resolution Adopting Policy 5- 18- 06.doc
PASSED AND ADOPTED this
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
COUNTERSIGNED:
day of 2006 by the following vote:
President of the District Board of the
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Secretary of the Central Contra Costa
Sanitary District, County of Contra
Costa, State of California
Approved as to Form:
Kenton L. Alm
District Counsel
Page 3 of 6
N: \ENVRSEC \Position Papers \Leavitt\SB 1087 Adopt Resolution Adopting Policy 5- 18- 06.doc
CENTRAL CONTRA COSTA SANITARY DISTRICT POLICY
REGARDING THE PROVISION OF SERVICE TO
RESIDENTIAL DEVELOPMENTS WITH AFFORDABLE HOUSING UNITS
Policy Background: Pursuant to Government Code Section 65589.7, the Central
Contra Costa Sanitary District (CCCSD) is required to adopt a written policy (i)
granting or providing priority for the provision of public sewer services to
proposed housing developments that help meet the regional need for lower
income housing and (ii) barring the denial or the conditioning of approval of an
application for services, or reducing the amount of the services applied for,
merely because a proposed development includes affordable housing
components, except in limited circumstances. The Policy set forth herein
conforms to this mandate.
2. General Service Policy. To the extent practical, CCCSD shall provide or allow to
be provided wastewater collection, treatment, and disposal facilities that:
a) Have sufficient capacity to accommodate the demand from land uses
approved in the General Plans of the land use planning jurisdictions within
CCCSD's service area, and
b) Are located so as to serve all existing or approved development within
CCCSD's service area and all customers contracting with CCCSD for
service, provided gravity service is feasible. Collection service by gravity
sewers is preferred to community pumping systems for financial and
environmental quality reasons. Board approval is required to establish a
community pumping system. Such approval shall not be based on the
presence or absence of housing affordable to low income households.
The Board may condition its approval by requiring a community pumping
system to be temporary, and mandating connection to a gravity sewer
when it later becomes available.
3. Provision of Service During Times of Excess Capacity: In times of excess
wastewater collection, treatment and disposal capacity, CCCSD shall review and
provide or permit the provision of public sewer service to residential housing
developments on an income - neutral basis. Upon an applicant's payment of
applicable fees or the execution of a contract to that effect with CCCSD, CCCSD
shall permit public sewer service to eligible customers in the order of an
N: \ENVRSEC \Position Papers \Leavitt \SB 1087 Adopt Resolution Adopting Policy 5- 18- 06.doc Page 4 of 6
application's submission, subject to the general restrictions set forth herein and
the income - neutral requirements of the District Code.
4. Provision of Service During Times of Limited Capacity or Ability to Provide
Service: In the event of service limitations due to capacity or regulatory
constraints, service priority shall be given to planned developments that include
housing units affordable to lower income households in accordance with
Government Code Section 65589.7 (SB 1087, 2005), and the limitations set
herein.
5. Service Approval and Application Review. CCCSD shall not deny or condition the
approval of an application for services to or reduce the amount of services
applied for by a proposed development that includes housing units affordable to
lower income households, unless CCCSD makes specific written findings that the
denial, condition or reduction is necessary due to the existence of one or more of
the following:
(a) CCCSD does not have sufficient treatment or collection capacity, as
demonstrated by a written engineering analysis and report on the
condition of the treatment or collection works, to serve the needs of the
proposed development.
(b) CCCSD is under an order issued by a regional water quality control board
that prohibits new sewer connections.
(c) The applicant has failed to agree to reasonable terms and conditions
relating to the provision of service generally applicable to development
projects seeking service from CCCSD, but not limited to, the requirements
of local, state, or federal laws and regulations or payment of a fee or
charge imposed pursuant to Government Code Section 66013.
6. Required Reports: Within six months of the initial approval of this policy and at
least once every five years thereafter, CCCSD shall prepare a report for acceptance by
the Board of Directors identifying:
(a) Available collection, treatment, and disposal capacity;
(b) The anticipated demand for wastewater utility service by planned housing
units affordable to lower income households;
N: \ENVRSEC \Position Papers \Leavitt \SB 1087 Adopt Resolution Adopting Policy 5- 18- 06.doc Page 5 of 6
(c) Any public or private action steps necessary to accommodate such
demand if adequate capacity is unavailable; and
(d) Any changes to these policies or procedures necessary for implementing
this service requirement.
Preparation of this report shall take into account information available in the General
Plans of the land use planning jurisdictions within CCCSD and pertinent District plans
and documents, such as the Collection System Master Plan, the Treatment Plant
Master Plan, CCCSD's NPDES Permit, collection system capacity model, and treatment
plant operational statistics and analyses.
N: \ENVRSEC \Position Papers \Leavitt \SB 1087 Adopt Resolution Adopting Policy 5- 18- 06.doc Page 6 of 6
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006 No.: 8.b. ENGINEERING
Type of Action: AUTHORIZE GENERAL MANAGER TO APPROVE CONTRACT
subject: AUTHORIZE GENERAL MANAGER TO APPROVE A CONTRACT
AMENDMENT FOR HOUSEHOLD HAZARDOUS WASTE TRANSPORTATION AND
DISPOSAL SERVICES PROVIDED BY PHILIP SERVICES CORPORATION (PSC)
Submitted By: Initiating Dept./Div.:
David Wyatt, Provisional HHW Supervisor Engineering / Environmental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
�(Vl!_J
D. Wyatt C. Swanson '-A.Farhell arringto arle&tftts
General Manager
ISSUE: The current contract with Philip Services Corporation (PSC) expires on
September 23, 2006. Staff requests that the Board amend the PSC contract to extend
the term for one year because of recent personnel changes involving two key
employees at the Household Hazardous Waste Collection Facility (HHWCF).
RECOMMENDATION: Authorize the General Manger to approve an amendment to
extend the contract with Philip Services Corporation (PSC) contract for one year,
effective September 23, 2006 through September 23, 2007.
FINANCIAL IMPACTS: The estimated cost of services to be provided for the one -year
extension period is $600,000.
ALTERNATIVES /CONSIDERATIONS: Initiate the procurement process immediately
and establish a new Household Hazardous Waste (HHW) transportation and disposal
contract by September 23, 2006.
BACKGROUND: The Household Hazardous Waste Collection Facility (HHWCF) is
staffed by five District employees. Recently, two key employees have left the District.
Philip Services Corporation (PSC) provides temporary labor and disposal services at the
HHWCF. The contract with PSC is set to expire in September 2006. Staff proposes to
extend the PSC agreement for one more year because of the loss of key staff.
Services provided by PSC include transportation and disposal of hazardous waste
collected from Central Contra Costa County residents and qualifying small businesses,
temporary HHW collection events serving residents only, supplemental labor support,
and emergency response services for the Treatment Plant. Staff reviewed PSC's cost,
performance, and financial statements, and conducted an audit of PSC facilities. Staff
is satisfied with PSC's responsiveness and reliability, and found PSC's disposal rates
competitive with other contractors providing HHW services in the Bay Area. Below is a
N: \ENVRSEC \Position Papers \Wyatt \Phillips Svc Contract Extension HHW 5- 18- 06.130C Page 1 of 2
POSITION PAPER
Board Meeting Date: May 18, 2006
subject: AUTHORIZE GENERAL MANAGER TO APPROVE A CONTRACT
AMENDMENT FOR HOUSEHOLD HAZARDOUS WASTE TRANSPORTATION AND
DISPOSAL SERVICES PROVIDED BY PHILIP SERVICES CORPORATION (PSC)
summary of PSC's four -year contract cost, with Fiscal Year 2001/02, the year prior to
when the latest contract was implemented, shown for comparison.
YEAR
CONTRACT COST
VOLUME DISCOUNT
NET COST
FY 2002/03
$576,300
$7,536
$568,764
FY 2003/04
$476,400
$5,637
$470,763
FY 2004/05
$540,700
$5,000
$535,700
FY 2005/06
Projected
$522,300
$5,650
$516,650
TOTAL
$2,115,700
$23,823
$2,091,877
FY 2001/02
For comparison)
$672,500
N/A
$672,500
The District realized a volume discount of 2.5 percent for the annual amount of invoices
greater than $500,000 and less than $600,000, and 1 percent for payment of invoices in
less than 15 days. The net cost of the four -year contract is $2,091,877. The District's
cost per car was reduced to $60 in FY 2004/05, and is projected to be $62 in FY
2005/06.
PSC has provided disposal and labor services since the HHWCF opened in 1997. PSC
was selected to continue providing these services after a formal proposal process in
2002. The current contract has a 3 -year term with the provision for one 1 -year
extension. In April 2005, the Board authorized the 1 -year extension to set the current
expiration date of September 2006.
PSC's financial status has strengthened, and is acceptable to staff. Considering that
the District pays PSC for services on a monthly basis, staff is confident that the District
can safely extend the contract for one year.
The Board Household Hazardous Waste Committee has endorsed a one -year extension
of this contract.
RECOMMENDED BOARD ACTION: Authorize the General Manger to approve an
amendment to extend the contract with Philip Services Corporation (PSC) contract for
one year, effective September 23, 2006 through September 23, 2007.
N: \ENVRSEC \Position Papers \Wyatt \Phillips Svc Contract Extension HHW 5- 18- 06.DOC Page 2 of 2
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006 No.: 8.c. ENGINEERING
Type of Action: AUTHORIZE AGREEMENT
subject: AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE
SECRETARY OF THE DISTRICT TO EXECUTE A JOINT POWERS AGREEMENT
WITH THE CITY OF CONCORD FOR THE CONCORD SEWER CONNECTION
PORTION OF THE A -LINE RELIEF INTERCEPTOR PHASE 2A, DISTRICT
PROJECT 5980
Submitted By: Initiating Dept /Div.:
Alex Rozul, Associate Engineer Engineering / Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
&�Y_ — — I 4h, i)
A. Rozul cki
r.
ISSUE: The Board of Directors' authorization is required for Joint Powers Agreements
(JPA) with other public agencies that exceed $50,000.
RECOMMENDATION: Authorize the President of the Board of Directors and the
Secretary of the District to execute a Joint Powers Agreement with the City of Concord
(City) for the design and construction of the Concord sewer connection portion of the
Joint Project, A -Line Relief Interceptor in Concord.
FINANCIAL IMPACTS: The construction cost of the Concord Sewer Connection is
estimated at $3,000,000 with another $600,000 for design and construction
management services. The Draft 2006/07 Capital Improvement Budget does not
authorize funds for the construction of the City's portion of the Joint Project. An
additional Board authorization will be requested at the time of award of the Construction
Contract if it occurs in fiscal year 2006/07. Under the proposed JPA, the City will
reimburse the District for all the costs attributable to the design and construction of the
Concord Sewer Connection, including District staff time. The City will own and assume
maintenance responsibility for the Concord Sewer Connection after completion of the
Joint Project. Therefore, this JPA will result in no net cost to the District.
ALTERNATIVES /CONSIDERATIONS: The Board could decline to authorize the
agreement, which would result in the City entering into their own design and
construction contract for the Concord Sewer Connection. Separate projects would
result in greater impacts over a longer period to the businesses that operate within and
the public that travels through the construction corridor. The City of Concord is
considering acceptance of this JPA at their May 16, 2006 Council meeting.
WPESUMCbradley \Position Papers \2006 \May \5980 - JPA PP.doc Page 1 of 3
POSITION PAPER
Board Meeting Date: May 18, 2006
subject: AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE
SECRETARY OF THE DISTRICT TO EXECUTE A JOINT POWERS AGREEMENT
WITH THE CITY OF CONCORD FOR THE CONCORD SEWER CONNECTION
PORTION OF THE A -LINE RELIEF INTERCEPTOR PHASE 2A, DISTRICT
PROJECT 5980
BACKGROUND: The City's primary sewage pumping station connects into the
District's system along the intended alignment for the A -Line Relief Interceptor. The
City has planned improvements to the pumping station that include an additional
forcemain and connection to the District system. When the District decided to move
portions of the A -Line Relief Interceptor ahead of schedule, staff recognized an
opportunity to eliminate the Concord pumping station. Staff then determined that rather
than have Concord complete a separate project, coordination would be improved and
costs reduced by doing a Joint Project. In addition, construction impacts to the
businesses and the public would be reduced. After discussions with City staff, it was
determined that the District will be the project manager for the design and construction
of the Concord Sewer Connection.
Following sufficient design, the District and the City will conduct environmental
evaluations to determine the appropriate California Environmental Quality Act (CEQA)
compliance documentation for its respective projects.
Both the District and the City benefit from a Joint Project. The District benefits from the
elimination of a major sulfide source and the waiving of City permit fees related to
construction, while the City benefits from the elimination of costs related to owning and
operating the sewage pumping station.
RECOMMENDED BOARD ACTION: Authorize the President of the Board of Directors
and the Secretary of the District to execute a Joint Powers Agreement with the City of
Concord for the A -Line Relief Interceptor Phase 2A, District Project 5980.
N:\PESUP \Cbradley \Position Papers\2006 \May \5980 - JPA PP.doc Page 2 of 3
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Page 3 of 3
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006 No.: 8.d. ENGINEERING
Type of Action: AUTHORIZE AGREEMENT /AUTHORIZE FUNDS
subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT
WITH WHITLEY BURCHETT AND ASSOCIATES TO PROVIDE PROFESSIONAL
ENGINEERING SERVICES FOR THE DESIGN OF THE LOWER ORINDA
PUMPING STATION UPGRADES - PHASE 2, DISTRICT PROJECT 5944;
APPROVE AUTHORIZATION OF $80,000 FROM THE COLLECTION SYSTEM
PROGRAM CONTINGENCY ACCOUNT FOR THE LOWER ORINDA PUMPING
STATION UPGRADES - PHASE 2, DISTRICT PROJECT 5944
Submitted By: Initiating Dept. /Div.:
Tad J. Pilecki, Principal Engineer Engineering / Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
(Z, -0, �1) - M : � I
Charles W. Batts/
General Manager r
ISSUE: Board of Directors' authorization is required for the General Manager to
execute professional engineering services agreements for amounts greater than
$50,000. Board of Directors' authorization is required for allocations from the Capital
Improvement Budget (CIB) program contingency accounts in amounts greater than
$25,000.
RECOMMENDATION: Authorize the General Manager to execute an agreement with
Whitley Burchett and Associates to provide design services for the Lower Orinda
Pumping Station Upgrades - Phase 2, District Project 5944, in the amount of $60,000.
Authorize $80,000 from the Collection System Program Contingency Account for the
Lower Orinda Pumping Station Upgrades — Phase 2.
FINANCIAL IMPACTS: The estimated design cost for this project, including District
Staff, is $80,000. A detailed estimate of the construction cost will be completed after
the project is designed. The total project cost is expected to be approximately
$400,000.
ALTERNATIVES /CONSIDERATIONS: An alternative would be to design the project
in- house. However, this project requires specialized expertise.
BACKGROUND: The District's 1989 Pumping Station Master Plan identified the need
to renovate the Lower Orinda Pumping Station. The Master Plan recommended that
the mechanical and electrical equipment be updated, reliability improved, and capacity
increased to meet projected wet - weather flows. The District awarded a construction
N: \PESUP \Cbradley \Position Papers\2006 \May \5944 - Lower Orinda Ph 2.doc Page 1 of 3
POSITION PAPER
Board Meeting Date: May 18, 2006
subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT
WITH WHITLEY BURCHETT AND ASSOCIATES TO PROVIDE PROFESSIONAL
ENGINEERING SERVICES FOR THE DESIGN OF THE LOWER ORINDA
PUMPING STATION UPGRADES - PHASE 2, DISTRICT PROJECT 5944;
APPROVE AUTHORIZATION OF $80,000 FROM THE COLLECTION SYSTEM
PROGRAM CONTINGENCY ACCOUNT FOR THE LOWER ORINDA PUMPING
STATION UPGRADES - PHASE 2, DISTRICT PROJECT 5944
project for the Lower Orinda Pumping Station in the amount of $5,696,000 to Pacific
Mechanical Corporation (PMC) on December 4, 2003. Construction on the Lower
Orinda Pumping Station was substantially completed in January 2006.
The design for the Lower Orinda Pumping Station Renovation project was completed
approximately four years ago. In 2004, the District experienced an overflow at the San
Ramon Pumping Station. In response to this overflow, the District prepared an
emergency plan and liability study. Based on the results of this study, the District had
requested a number of upgrades /improvements to the Lower Orinda Project that would
enhance the station's reliability and maintainability. These requests include such items
as bypass and soft start capabilities on the 250 -hp variable frequency drives for the
wet - weather pumps, isolation gates for the new grinders, a building security system,
emergency lighting in the Motor Control Center, and other miscellaneous items.
These items would normally have been addressed as change orders to the construction
contract. Staff did not pursue the normal procedure because the project was
significantly behind schedule and there was a potential claim related to the emergency
standby generator and control panel. Given the situation, staff recommends that the
District design and bid a separate project to implement the upgrades requested.
On April 26, 2006, the construction team received a request for additional
compensation from the contractor related primarily to the emergency standby generator
and control panel. Staff is evaluating the request and will meet with PMC in an effort to
resolve the issues. Staff will brief the Board on its evaluation /negotiation progress at a
future Board Meeting.
District staff requested informal cost proposals from two (2) consulting firms for the
design of Lower Orinda Pumping Station Upgrades - Phase 2. After reviewing the
qualifications of the proposed project teams, the specialized experience in similar
projects, and the proposed scope of work/level of effort, the proposal from Whitley
Burchett and Associates was considered the best fit for the project. Staff has
negotiated a contract with Whitley Burchett and Associates in an amount not to exceed
$60,000 for the design only. Whitley Burchett and Associates may also be needed to
provide support during construction. The amount of this construction support contract
will be negotiated at that time.
NAPESUP\Cbradley \Position Papers \2006 \May \5944 - Lower Orinda Ph 2.doc Page 2 of 3
POSITION PAPER
Board Meeting Date: May 18, 2006
subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT
WITH WHITLEY BURCHETT AND ASSOCIATES TO PROVIDE PROFESSIONAL
ENGINEERING SERVICES FOR THE DESIGN OF THE LOWER ORINDA
PUMPING STATION UPGRADES - PHASE 2, DISTRICT PROJECT 5944;
APPROVE AUTHORIZATION OF $80,000 FROM THE COLLECTION SYSTEM
PROGRAM CONTINGENCY ACCOUNT FOR THE LOWER ORINDA PUMPING
STATION UPGRADES - PHASE 2, DISTRICT PROJECT 5944
The Lower Orinda Pumping Station Upgrades - Phase 2 is in the Draft 2006/07 CIB on
pages CS -91 and 92. Since the project is not included in the 2005/06 CIB, staff is
requesting authorization for $80,000 from the Collection System Program Contingency
Account.
At its September 2, 1999 meeting, the District Board of Directors approved a Negative
Declaration for the Lower Orinda Pumping Station Renovation Project. Subsequently, a
Notice of Determination was filed in compliance with the California Environmental
Quality Act (CEQA).
RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a
Professional Engineering Services Agreement with Whitley Burchett and Associates in
the amount of $60,000 for the design of the Lower Orinda Pumping Station Upgrades —
Phase 2, District Project 5944. Authorize $80,000 from the Collection System
Contingency Account for the Lower Orinda Pumping Station Upgrades - Phase 2,
District Project 5944.
NAPESUP\Cbradley \Position Papers \2006 \May \5944 - Lower Orinda Ph 2.doc Page 3 of 3
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Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 18, 2006 No.: 10.a. BUDGET AND FINANCE
Type of Action: BUDGET REVIEW
subject: RECEIVE THE FISCAL YEAR 2006 -2007 OPERATIONS & MAINTENANCE
BUDGET; RECEIVE THE FISCAL YEAR 2006 -2007 DEBT SERVICE FUND
BUDGET
Submitted By:
Debbie Ratcliff, Controller
Initiating Dept./Div.:
Administrative /Finance & Accounting
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
r;s
I
Charles . Batts,
General Manager
ISSUE: The fiscal year (FY) 2006 -2007 Operations & Maintenance (O &M) Budget and
Debt Service Fund Budget are being submitted for review at the May 18, 2006, Board
Meeting, and are scheduled for approval at the June 1, 2006, Board Meeting.
RECOMMENDATION: Review the FY 2006 -2007 O &M Budget and Debt Service Fund
Budget and provide District staff with comments and guidance leading to the approval
of the Budgets at the June 1, 2006, Board Meeting.
FINANCIAL IMPACTS: The FY 2006 -2007 O &M Budget is based on a $9 rate
increase in the Sewer Service Charge (SSC) which will generate approximately $1.4
million. The total rate increases from $280 to $289 per Residential Unit Equivalent
(RUE) and is allocated as follows: $213 to the O &M Fund (O &M) and $76 to the Sewer
Construction Fund (Capital). The O &M Budget results in a decrease of $7.2 million to
O &M reserves. This is due to both the increased allocation of SSC revenue to the
Sewer Construction Fund and a $5 million payment towards the unfunded liability
associated with GASB 45 post retirement benefits.
ALTERNATIVES /CONSIDERATIONS: At the Board Workshop in January, different
SSC rate scenarios were considered which affect District revenues as well as the fiscal
year -end reserve balances. The assumptions used in developing this year's budget
reflect a SSC rate increase of $9. The Board could choose not to implement a SSC
rate increase for FY 2006 -2007. Also, the Board could choose the option of not making
a payment towards the unfunded liability associated with GASB 45 post retirement
benefits. Finally, the Board could choose an alternative that was not presented at the
January, 2006, Board Financial Planning and Policy Workshop.
BACKGROUND: Staff has developed a ten -year financial plan for forecasting
revenues, expenses and fund balance. The model assists the Board and staff in
addressing SSC rates for future years. Staff made a presentation at the January 26,
2006, Board Workshop recommending a $9 increase for FY 2006 -2007. Also, a
N:\ADMINSUP\ADMIN \POSPAPER \Budget Review O &M 2006 -2007 5- 18- 06.DOC Page 1 of 8
POSITION PAPER
Board Meeting Date: May 18, 2006
subject. RECEIVE THE FISCAL YEAR 2006 -2007 OPERATIONS & MAINTENANCE
BUDGET; RECEIVE THE FISCAL YEAR 2006 -2007 DEBT SERVICE FUND
BUDGET
recommendation was made to increase Capital spending by expediting projects due to
the additional connection fee revenue from the Dougherty Valley, and to allocate $5
million from the O &M Fund towards the unfunded liability associated GASB 45 post
retirement benefits. The $5 million annual liability was actuarially determined and
includes an approximate payment of $2 million for retiree medical, dental and life
insurance premiums annually with the difference of $3 million to be invested in a GASB
45 investment vehicle. A public hearing is scheduled on June 1, 2006, to receive public
comments.
In FY 2004 -2005, a new Debt Service Fund was created showing a separate fund for
debt service to help clarify and simplify budget presentations. Attachment
summarizes the Debt Service Fund Budget.
The O &M portion of this position paper focuses on variances between projected FY
2005 -2006 expenses and the proposed FY 2006 -2007 Budget. The position paper also
notes any significant variances between the budgets. Attachment II summarizes the
O &M revenues, expenses, and reserve balances for the seven FY 2000 -2001 through
FY 2006 -2007 (five years of actual expenses plus FY 2005 -2006 projected and FY
2006 -2007 proposed budget numbers).
Revenue: The attached draft budget includes a budget assumption for SSC of $289
based on a $9 increase. The O &M allocation decreases from $234 to $213 which
increases the allocation to the Sewer Construction Fund by $30. This results in a
decrease to O &M SCC revenue of $3,305,500 compared to FY 2005 -2006. There is no
property tax shown in the O &M Budget as it has been shifted to the Debt Service Fund
to cover bond payments, and then funds Capital improvements.
The following table compares Projected FY 2005 -2006 to Budget FY 2006 -2007 O &M
Revenue:
to shift to the Sewer Construction Fund
N:\ADMINSUP\ADMIN \POSPAPER \Budget Review O &M 2006 -2007 5- 18- 06.DOC Page 2 of 8
O &M REVENUE ONLY
Projected
Budget
Increase /Decrease ( -)
2005 -2006
2006 -2007
Variance
Variance %
Sewer Service Charge
$ 37,992,000
34,687,000
(3,305,000)*
-8.7%
City of Concord
7,600,000
8,900,000
1,300,000
17.1°/
11 Other
3,140,000
3,389,000
249,000
7.9%
otal
$ 48,732,000
46,976,000
(1,756,000)
-3.6%
to shift to the Sewer Construction Fund
N:\ADMINSUP\ADMIN \POSPAPER \Budget Review O &M 2006 -2007 5- 18- 06.DOC Page 2 of 8
POSITION PAPER
Board Meeting Date: May 18, 2006
subject RECEIVE THE FISCAL YEAR 2006 -2007 OPERATIONS & MAINTENANCE
BUDGET; RECEIVE THE FISCAL YEAR 2006 -2007 DEBT SERVICE FUND
BUDGET
Total District O &M revenue for FY 2005 -2006 is projected to be $48,732,000 compared
to the FY 2006 -2007 budget amount of $46,976,000. The resulting decrease of
$1,756,000 or 3.6% is mainly due to the shift of SSC revenue to the Sewer
Construction Fund from the District O &M Fund partially offset by increases to Concord
revenue due to higher O &M expenses.
Expense: Total District expenses are projected to be $45,302,841 in FY 2005 -2006
due to savings generated by staff as compared to a budget of $54,207,356 in FY 2006-
2007. This reflects a $8,904,515 or 19.7% increase in expenses. As expected, salary
and benefit costs and utilities make up the bulk of this increase.
The table below compares Projected FY 2005 -2006 to Budget FY 2006 -2007 O &M
Expense:
Salaries: District O &M salaries are projected to be $19,156,752 in FY 2005 -2006
compared to a budget of $21,087,172 in FY 2006 -2007 resulting in an increase of
$1,930,420 or 10.1 %. This increase is mainly due to the filling of several vacant
budgeted positions, the addition of six new positions in the Staffing Plan, a 3% general
salary increase, step (merit) increases for newer or promoted employees within their
salary ranges, and increases generated by the MS /CG Salary Survey.
N:\ADMINSUP\ADMIN \POSPAPER \Budget Review O &M 2006 -2007 5- 18- 06.DOC Page 3 Of 8
Projected
Budget
Increase /Decrease ( -)
2005 -2006
2006 -2007
Variance
Variance %
Salaries
$ 19,156,752
21,087,172
1,930,420
10.1 %
Benefits less Cap O/H
10,843,944
14,923,643
4,079,699
37.6 %
Chemicals
1,056,422
1,181,000
124,578
11.8%
Utilities
4,975,773
5,836,960
861,187
17.3 %
Repairs & Maintenance
2,986,429
3,060,071
73,642
2.5%
Hauling & Disposal
996,704
1,058,360
61,656
6.2%
Professional & Legal
455,910
506,600
50,690
11.1%
Outside Services
1,790,106
2,205,670
415,564
23.2 %
Self-insurance
250,000
700,000
450,000
180.0%
Materials & Supplies
1,620,111
1,691,855
71,744
4.4%
( Other
1,170,690
1,956,025
785,335
67.1%
otal
$ 45,302,841
54,207,356
8,904,515
Salaries: District O &M salaries are projected to be $19,156,752 in FY 2005 -2006
compared to a budget of $21,087,172 in FY 2006 -2007 resulting in an increase of
$1,930,420 or 10.1 %. This increase is mainly due to the filling of several vacant
budgeted positions, the addition of six new positions in the Staffing Plan, a 3% general
salary increase, step (merit) increases for newer or promoted employees within their
salary ranges, and increases generated by the MS /CG Salary Survey.
N:\ADMINSUP\ADMIN \POSPAPER \Budget Review O &M 2006 -2007 5- 18- 06.DOC Page 3 Of 8
POSITION PAPER
Board Meeting Date: May 18, 2006
subject. RECEIVE THE FISCAL YEAR 2006 -2007 OPERATIONS & MAINTENANCE
BUDGET; RECEIVE THE FISCAL YEAR 2006 -2007 DEBT SERVICE FUND
BUDGET
Benefits Less Capitalized Administrative Overhead: District O &M benefits less
capitalized administrative overhead for FY 2005 -2006 are projected to be $10,843,944
compared to a budget of $14,923,643 in FY 2006 -2007. This is an increase of
$4,079,699 or 37.6 %. The major factors contributing to this increase are discussed
below:
• A retiree benefit payment of $5 million to establish a trust type vehicle (which
includes approximately $2 million for retiree medical, dental and life insurance
premiums) for funding post- retirement benefits per GASB requirements, an
increase of $245,000 in retiree medical costs, as a result of a 14% weighted
average rate increase of Kaiser and HealthNet premiums, plus a $20,000
projected increase in retiree dental costs. There was no rate increase in retiree
life insurance.
• An average 2.7% retirement rate increase, resulting in an increased retirement
contribution of $1,131,071 for FY 2006 -2007 when comparing to FY 2005 -2006
projected actual expense. The FY 2005 -2006 Budget compared to the FY 2006-
2007 Budget shows an increase of $758,442. The difference is due to projected
actual FY 2005 -2006 retirement cost being less than the FY 2005 -2006 Budget,
due to salary savings and lower associated retirement benefit costs related to
vacant positions. Consequently, the lower FY 2005 -2006 costs widen the gap
when comparing to the FY 2006 -2007 Budget.
• Medical and Health Insurance costs for active employees are $480,000 higher
when comparing FY 2005 -2006 projected actual expense to the FY 2006 -2007
Budget. HealthNet HMO /PPO rates increased by 7% and Kaiser rates increased
by 8% for FY 2006 -2007.
• There were no rate increases in Life Insurance or Long -Term Disability rates.
Dental rates increased by 5 %, and a 5% rate increase was estimated for
Workers' Compensation; actual rates aren't known yet.
Capitalized Administrative Overhead, which is the District overhead charged to
Capital Projects and credited to O &M expense, is projected to be - $2,318,556 in
FY 2005 -2006 as compared to a FY 2006 -2007 Budget of - $2,962,742, reflecting
a decrease of $644,186 in O &M expenses. The Administrative Overhead
percentage was increased from 90% of capital salaries in FY 2005 -2006 to 103%
of capital salaries in FY 2006 -2007 Budget, as outlined in the 10 -year plan
document.
N:\ADMINSUP\ADMIN \POSPAPER \Budget Review O &M 2006-2007 5- 18- 06.DOC Page 4 Of 8
POSITION PAPER
Board Meeting Date: May 18, 2006
subject. RECEIVE THE FISCAL YEAR 2006 -2007 OPERATIONS & MAINTENANCE
BUDGET; RECEIVE THE FISCAL YEAR 2006 -2007 DEBT SERVICE FUND
BUDGET
Chemicals: Chemical usage expense is projected to be $1,056,422 in FY 2005 -2006
compared to a FY 2006 -2007 Budget of $1,181,000 for an increase of $124,578 or
11.8 %. This increase is due to the increased cost and use of hydrogen peroxide for
odor control and the increased use of hypochlorite for recycled water.
Utilities: Utilities costs are projected to be $4,975,773 in FY 2005 -2006 compared to a
budget of $5,836,960 in FY 2006 -2007 for an unfavorable variance of $861,187 or
17.3 %. Natural gas usage remains stable, but the price of gas has increased nearly
18% for FY 2006 -2007. The price of landfill gas is indexed to the price of natural gas,
and as a result, landfill gas has increased in cost as well.
Repairs & Maintenance: Repairs and maintenance costs are projected to be
$2,986,429 in FY 2005 -2006 compared to a budget of $3,060,071 in FY 2006 -2007, for
an unfavorable variance of $73,642 or 2.5 %. This increase is due to additional funds
budgeted for engine generator maintenance, furnace and pump repair, and manhole
raising.
Hauling & Disposal: Hauling & Disposal costs are projected to be $996,704 in FY 2005-
2006 compared to $1,058,360 in the FY 2006 -2007 Budget resulting in an unfavorable
variance of $61,656 or 6.2 %. This increase is due to an increase in ash disposal costs
because of increased fuel cost and increased reuse site charges.
Professional & Legal: Professional and Legal costs are projected to be $455,910
compared to a FY 2006 -2007 Budget of $506,600 for an unfavorable variance of
$50,690, or 11.1 %. This increase is due to monies budgeted for Americans with
Disabilities Act compliance, and consultant and legal fees associated with the
establishment of a GASB 45 investment vehicle for FY 2006 -2007.
Outside Services: This year's Outside Services Budget was $2,087,400 compared to a
projected cost of $1,790,106. The FY 2006 -2007 Budget is $2,205,670, increasing by
$415,564 or 23.2% from this year's projection. This increase is primarily due to
anticipated legal and consulting fees associated with the District's National Pollutant
Discharge Elimination System (NPDES) permit renewal which was delayed until FY
2006 -2007 by the Regional Water Quality Control Board, an increase in the property tax
collection fee paid to the County and temporary staffing for the Household Hazardous
Waste Collection Facility.
Self- Insurance: The O &M contribution to the Self- Insurance Fund was $250,000 for FY
2005 -2006 and the Board authorized an increased contribution of $700,000 to the Self -
Insurance Fund at the Board Meeting of April 20,2006.
N:\ADMINSUP\ADMIN \POSPAPER \Budget Review O &M 2006 -2007 5- 18- 06.DOC Page 5 Of 8
POSITION PAPER
Board Meeting Date: May 18, 2006
Subject: RECEIVE THE FISCAL YEAR 2006 -2007 OPERATIONS & MAINTENANCE
BUDGET; RECEIVE THE FISCAL YEAR 2006 -2007 DEBT SERVICE FUND
BUDGET
Materials & Supplies: Materials & Supplies are projected to cost $1,620,111 compared
to a FY 2006 -2007 Budget of $1,691,855 for an increase of $71,744 or 4.4 %. This
increase is primarily due to the purchase of materials used in pipe repair at CSO and
projected general inflationary increases in the cost of supplies.
All Other: All other expenses combined increased by $785,335 from projected FY
2005 -2006 to the FY 2006 -2007 Budget. This 67.1 % increase is due to election
expense for FY 2006 -2007 estimated to be $500,000 compared to zero expense in FY
2005 -2006, an increase in fees for the Regional Monitoring Program and rental of a
power rodder to replace an existing truck until the new rodder is delivered.
Any revisions to the FY 2006 -2007 O &M Budget determined at the May 18, 2006,
Board Meeting will be incorporated in the Budget submitted for approval at the June 1,
2006, Board Meeting, at which the following actions are scheduled:
Conduct a public hearing to receive comment on the FY 2006 -2007 O &M
Budget, Self- Insurance Fund Budget and Debt Service Fund Budget.
• Conduct a public hearing to receive comment on the establishment of the Sewer
Service Charge rates for FY 2006 -2007 and for the collection of the FY 2006-
2007 Sewer Service Charge and prior year delinquent charges on the County
Tax Rolls.
Approve the FY 2006 -2007 O &M Budget, Self- Insurance Fund Budget and Debt
Service Fund Budget.
RECOMMENDED BOARD ACTION: Review the FY 2006 -2007 O &M Budget and Debt
Service Fund Budget and provide District staff with comments and guidance leading to
the approval of the Budgets at the June 1, 2006, Board Meeting.
N:\ADMINSUP\ADMIN \POSPAPER \Budget Review O &M 2006 - 2007 5- 18- 06.130C Page 6 Of 8
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10.a
2006 -2007 O&M BUDGET
ASSUMPTIONS
REVENUE ASSUMPTIONS:
Sewer Service Charge - $289
$213 Allocated to O &M
$76 Allocated to Sewer Construction
Total Budgeted Ad Valorem Tax $11 million:
$3.7 Million Allocated to Debt Service Fund
$7.3 Million Allocated to Sewer Construction Fund
EXPENSE ASSUMPTIONS:
$5 Million allocation for GASB 45 post retirement benefits
Retirement Expense - 2.7% increase in rate
Increases to Healthcare costs for active employees (7-8%)
Administrative Overhead percentage- increased from 90% to 1030
N :\ADMINSUP\ADMIN \RATCLIFF\Budget Overheads 2006- 2007.doc
O&M REVENUES, EXPENSES, AND RESERVES
FISCAL YEAR 2004 -2005 THROUGH 2006 -2007
(000 Omitted)
Revenues:
Sewer Service Charge
City of Concord
Other
Total Revenues
Expenses:
Total Net Expenses
Fund Balance -
Beginning Of Year
Revenues Over Expenses
Fund Balance -
End Of Year
Sewer Service Charge Rate
(O&M Portion Only)
Total Sewer Service Charge
Sewer Service Equivalent
2004 -2005 Current 2006 -2007
Actual Projected Budget
2005 -2006
$32,283
$37,992
$34,687
6,603
7,600
8,900
3,371
3,140
3,389
42,257
48,732
46,976
42,295
45,303
54,207
10,931
10,893
14,322
(38)
3,429
(7,231)
10,893
14,322
7,091
204
234
213
N: \ADMINSUP\ADMIN\RATCLIFF\Budget Overheads 2006- 2007.doc
$280 $280 $289
$162,850
TOTAL DISTRICT REVENUE & EXPENSE
2006 - 2007 BUDGET
Total
District
Revenues
$85,764,000
Expenses
88,959,356
Revenues Over Expenses
$3,195,356
N:WDMINSUP\ADMINIRATCLIFRBudget Overheads 2006- 2007.doc
Operations & Sewer
Maintenance Construction
$46,976,000 $38,788,000
54,207,356 34,752,000
(57,231,356) $4,036,000
OPERATING AND MAINTENANCE
2005 -2006 BUDGET COMPARED TO 2006 -2007 BUDGET
(000 Omitted)
Revenues
Expenses
Revenues Over Expenses
Fund Balance 06/30/07
2005 -2006
Budget
$47,818
47,189
629
N :\ADMINSUP\ADMIN \RATCLIFRBudget Overheads 2006- 2007.doc
2006 -2007
Budget
$46,976
54,207
7 231
$7,091
%
Increase
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(1.8 %)
14.9%
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Salaries & Wages
Retirement
Medical Insurance
Dental Insurance
Workers' Compensation
Vacancy Factor
Capitalized Adm.
Overhead
All Other
Total labor Costs
KEY LABOR COSTS
(000 Omitted)
2005 -2006
Budget
$20,087
6,723
4,073
653
607
(425)
(2,256)
2,105
31 567
N: \ADMINSUP\ADMIN \RATCLIFF\Budget Overheads 2006- 2007.doc
2006 -2007
Budget
$21,087
7,481
4,529
659
510
(510)
(2,963)
5,218
36 011
Increase
(Decrease)
$1,000
758
456
6
(97)
(85)
(707)
3113
4 444
KEY INCREASES 2005 -2006 BUDGET
TO 2006 -2007 BUDGET
N: \ADMINSUP\ADMIN \RATCLIFF\Budget Overheads 2006- 2007.doc
Dollar Increase
(Decrease)
% Increase
2005 -2006 Budget
$47,188,613
Salaries
1,000,448
5.070
Benefits
3,442,985
30.0
Chemicals
105,000
9.8
Utilities
958,280
19.6
Repairs 8 Maintenance
137,465
4.7
Hauling 8 Disposal
68,800
7.0
Professional & Legal
18,950
3.9
Outside Services
118,270
5.7
Self Insurance
450,000
180.0
Materials & Supplies
110,050
7.0
All Other
608,495
45.0
2006 -2007 Budget
$54,207,356
14.97o
N: \ADMINSUP\ADMIN \RATCLIFF\Budget Overheads 2006- 2007.doc
DEBT SERVICE FUND
2006-2007 BUDGET
(000 Omitted)
Revenue
Debt Service
$3,882
Interest Expense 1,609
Principal Payments 2,273
TOTAL $3,882
N: \ADMINSUP\ADMIN \RATCLIFF\Budget Overheads 2006- 2007.doc
10.a.
Central Contra Costa Sanitary District
Board Budget Presentation
Budget and Sewer Service Charge Review
For the Fiscal Year 2006 -2007 Budget Process
May 18, 2006
Central Contra Costa Sanitary District
"Board Workshop"
`Keeping the Waters Calm'
- Making decisions today for a better tomorrow -
This is about future rate increases
The Long -term View
1
Purpose of Today's Presentation
• Discuss rate setting philosophy
• District FY 2006 -2007 Budget
• Receive Board direction:
— 2006 -07 SSC rate Increase
• Workshop Scenarios
• O &M Budget
• Capital Improvement Program
• Consider future unfunded OPEB liability
Rate - Setting Philosophy
• Reserves should always be adequate to cover
upcoming cash flow needs
• A ten -year planning horizon is adequate for most
financial planning purposes
• Debt service should be reserved for major financial
issues, e.g. major capital projects, plant expansion,
pension bonds, etc.
• Fees & Charges should reflect full cost of service
• Rate and Fee increases may not always be required
• Modest annual SSC increases may be preferred over
large periodic rate increases
e
2
Reviewing Workshop
10 -YEAR PLAN SCENARIOS VERSUS BUDGET
Revenue
Workshop Scenario
Budget
Difference
Capital
$ 38,730,000
38,772,000
42,000
Operations and Maintenance
47,138,742
46,976,000
(162,742)
Total District Revenue
$ 85,868,742
85,748,000
(120,742)
Expense
Capital
Operations and Maintenance
Total District Expense
Revenue Over Expense
Capital
Operations and Maintenance
Total District Revenue Over
Expenses
$ 36,359,000 34,118,000 (2,241,000)
54,163,938 54,207,356 43,418
$ 90,522,938 88,325,356 (2,197,582)
$ 2,371,000 4,654,000 2,283,000
(7,025,196) (7,231,356) (206,160)
$ (4,654,196) (2,577,356) 2,076,840
Rate Setting Philosophy
• Need for rate increases
— Maintain "funds required"
• $34 to $37 million
— Increasing costs
• Labor - 3 %CIP = $1.2 million
• Benefits -10% Health = $0.5 million
• Energy - ? - 20% _ $1 million
— Capital program requirements
• CIP = $293 million
— Avoid short -term debt financing
• Current dept $34 million
— Regulatory Compliance
3
District Expenses
Recommended
COMPARISON BY TYPE AND YEAR
$25,000,00
Fund, R.qulr.dlF"-* Avalla *
$20.000.000
$15.000.000 .._ _._ ....... .. ... ._.. _. ___.— _.. __
eo.oao
$6.0 million contribution for Post - Retirement Costs
$10.a00.aoo
NEIs-
�T r ° � O a o'�
E
O+C N
b
W ` e
/
�. .•
■ 2003 -2004 Actual a 20042005 Aciu.l 0 2005 -2006 Rej Wd O 2006 -2007 Rgecl.d
Recommended
Scenario
Fund, R.qulr.dlF"-* Avalla *
eo.oao
E
xow.Naa
xaos.xooa xooe.xoox xao>.xaae 2aaa2— ].11x011
112 -1 2.1}]011
2*111111
As Mpfions:
Actual Projected > >
2004 -2005 2005 -2006 2006-2007 2007 -2006 2008-2009 2009.2010
2010 -2011
20172012
Mnual Sewer Senlce Charge/RUE
-0ebt6enice
-0101
- CapiulUp9nde /Replacement
T.W
.In- ...'thie Y..r
158,250 160,905 163,630
- - -
204 234 213
76 46 76
280 280 289
165,855 167,605 169,355
- - -
263 271 282
36 41 44
299 312 326
170,655 171,853
-
294 306
47 53
341 359
Board Policy Issue
• Pay now - Raise rates by CPI
—Continued reserves
—Cheapest long -term alternative
— Allows expanded Capital Program
— Ability to fund unexpected needs
—Political cost minor
No Rate Increase
m.ao6
Funds Required/Funds Available
m,asa
e6,66v
-06M
g§
E .o.000
234 213 263
271
i
A.WO
- - -
- - - - - - -
10,000
76
46 67 33
41
'
50
2004m0e 2004Npe —1
6 20041006 200&2010 20104011 3011 -3012 2a1-1a 30I.— ]O1� -2015
Yea
—TWIFunaa w - �TWI FOM Fbp
2004 -2005 2005- 2006 2006.2007 2W7 -2= 2008 -2009 201132010 2010.2011 2011 -2012
-Debt 6erNu
-06M
204
234 213 263
271
282
294
306
-Capital Upgrade/Replacement
76
46 67 33
41
'
50
55
Total
280
280 280 296
312
328
344
361
4— selhisyear*
a
16
1a
16
16
17
Board Policy Issue
• Pay later- defer rate increase
—Future cost not always known
—Higher long -term costs
—May be organizational impact
• Defer capital projects, other expenses
—Impact ability to borrow
—Deferred political cost
Sewer Service Charge and Connection Fee Comparison
Agency ___ __ __2005 -06 2006 -07
Benicia 472 496 — Goes up 5% per year, next 6years
Livermore
Crockett- Valona SD
465
453
_
Rodeo San. District
443
Berkeley
402
Pleasanton_
378
Vallejo
375
EBMUD
347
Oakland
330
Pittsburg DDSD)
337
Mt. View SD
333
Large increase planned
Dublin San Ramon SD
327
San Rafael SD
317
396
1 Increasing to $477, $561, $603, then $647
Novato
302
Larkspur
292
342
Additional large increases planned
Antioch DDSD
283
Napa Sanitation Dist
274
Increasing next year
Bay Point DDSD
272
Concord
258
Corte Madera
250
Increasing to $374, $436, then $498
Fairfield- Suisun
250
Increasing 5.2% per year – several years
Ross Valle Mahn
220
270
Additional increases planned
Union Sanitary District
216
226
West County WD
170
170
No increase planned
Oro Loma SD
173
193
Goes to $213 in 2007 -08
1.1
Unfunded Liability- OPEB
Concern for the future
• Future economic liabilities
— Retiree benefits, mainly health
• Obligation to existing and past employees /benefits
• Required to consider (GASB 45)
• Four options
—Allocated funds in budget
• Paying down an incurred debt
• Decide `vehicle' at later time
• Benefits paid from `vehicle'
• Annual payment not required
• Recalculate every two years
Future Unfunded liability
7
Rate Decision Impact
• Financial impact mainly in long -term rates
(over 5 years)
• Difficult to predict long -term expenses and
future revenue
• Impact on short -term (3 years)
— $10 /year vs. $16 /year
• Cost of short -term rate deferment would be
approximately $15.6 million for 10 years
Recommendation of Staff
• Implement the $9 Sewer Service Charge
Increase
• Proceed with District Rate Setting Process
— Announce in Spring Pipeline
— Requires new resolution
• Approve District Budget for 2006 -07
— Adopt Budget and rates at June
• Consider funding for OPEB
— Set funds aside in budget, funds remain in reserve
— Future consideration for options by Board
c
Central Contra Costa Sanitary District
Board Workshop
Comments and Direction