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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 7.4%1 1.3% 8.7% 109% 1.4% 10% 110% U E N (o C N EO a� o� N V CY) L / m L J -o ru Ln LO m LO e 0) to (n o� N � O 00 ; >4-J fu ns V V o� N V CY) L / m L J -o ru Ln LO m LO e 0) to (n o� N � O 00 ; >4-J fu ns N U L O V / 4-J ru i C U 0 O -a ra ruN p1 L J • T -I O O N .C: O . _ ra 0) H 4� U O U c O co O U co O � � O U -0 ca 0 (1) (2) O U o � 0 c O O O _ U -0 U >% O �' co O Q O J C/) I I M O O N O -0 O N � m . — ru _O ) -0 O � U O ru a--� .c E O ca U U c- C: O O a) i_ ,� CL .f6 ,� a- U oC to � V (B O C N .. 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ZaZa CL W aJU W 'J Q ru Q) ra (of) w= m F- 0 a Z d Z LLJ d W aJU W 'J a ru a� 0 ro a 0 c ca U o� LLi �o a Z a..za W EL- Z5 U W I J 0 0 U �O L U O L a a V a� F- fo E .C: E (n V � 0� ru U • O 00 Co C- u �- � O OO � O O z U • • O O N L!7 0L Ul) 0 _0 W U � � o L W U • cn 0) ru o � 00 > c) Q 00 ,> un 4-J .0) %% . o 0- . - �t- E E a -�- ° ., w U L L O C m w �— I I I H • W (n ro C- E -0 ru ._ co c0 4O ro a) O U m E tj .C: a O .o •= Q v L L — o a' o - U _0 �— .0 .O U L r fu E �- E ro a� LL Jc: I I 0 E • c 0 r� c a� E E 0 v a� • 4-% nV,1 •W ^V) W V , O 0-5 C- W V 4-, 4� O 0 I- .61 E V � O C: 4-J O U •- O ` •- O V i O > U L- O fo CD- V Q O � H • 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 :UVWTP �..y i . M� COUNTY a :y'` dkv :: y�.'••:. ,'I BUCHANAN FIELD PUMPING t: - ;- ;� ^ STATIONS :$UCHANAN FIELD GOLF COURSE _ CONCORD �,. - _ a PUMPING,•':`;` ,. is ?' 'Y ��ii� `� 4. STATION: is MERIDIAN!: PARK . �BOyLEVAAD ... /� • a�'• a - ........ ............................... .. ti: tt' '•: }_ V. `• ';t1 p- O Si •..:. it is it ..: if ,.l .. CONCit s a' - TAYLOR A •'f' r F PLEASANT HILL .................. d O ,:� J LEGEND: . _. s . . PHASE 1 _ ..............: .... .. (EXISTING) PHASE 2A (PROPOSED) FUTURE 3 0 2500 CONCORD — BOYD ;; -• y ���������� INTER -TIE E FEET >.. u n Y Central Contra Costa Sanitary District co A - LINE RELIEF INTERCEPTOR CD PHASE 2A JOINT PROJECT M O 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 cv c a> rn 2 IN 0 Z am am Q ri Z OC O w 3: O J Cl) W QDne (MD am Z O Q H CN qq LLI � co um) as =o a 0 Z - ~ °o V LV CV W W j o a � a o O m .° 0 Ma � O °r 0 s o E LO o .2 L O L 0) a. 0 �1 Q CL o a, Cl) m 43 � V D a. 0) o 0 L 0 E a. a LM o C6 m 0 0 00 0 w IMM K w Q D Z d' 0 w 3: O J 0 0 a a a 0 z 2 O w O J Ee t7vi L 0 LM CO 0 W � � •i%i n Lo co 0 Z y - Z 0 0 Fm Lm a0 L � Cl) 4i Z mi z AW MOMMM LMM G1 U E = J � WI I � L 0 N CO i H � Z W _ � w � t� �O L) � W a � Q Z LM aCl) :) 2 E 0 ftaftft %6= o a �n as � o CO a� a ,o 0 a � � m � y s � J cn coL L � v W 4� o m Q Z � O (D a 'o o a z w i CL O � w � ca .y a� 0 N O N 3 Q as = ea z Q i N m L 0 s Q � CO Z 0 H Cl) W 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. 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O cu O O y= O O N C O 'O' O L N � cn CU N (` 06 cu U O ffi (A N N U cu O U _ C C > CU = N _0 0- U E = U O +• � C O c c- > O U -0 ca -v >..Q (B O a) U U = U C CL E C N U O C cu cu a) > C •> a) W a) -0 CU (II O OO N C CV W O ai a N N cu O t N =U C O O c 60, CU aW o W cn c O U cis Z Q m N M N a� 0 4- 0 of a) rn a C 0 U Q ti O O N O O N Q E N E O 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 (Decrease) (1.8 %) 14.9% N H LL W Z W m In Z V) W J N U_ 0 Q C O C N N CL w L U t0 W .1 n m N N t) M N ' TO N t~D Cc m O to d O r Z L V M Cl) O > _ =o U ti 0 0 b IT O m tD co ' Q t- Z 04 m e} r t0 N tt! O O N N I m r t` U N M N O N M O � to to W w O r+ N cc (n N 4 N a;' tJ) b tD W) r M N O O O m N r N tD N O 00 tp N r _ LO 00 r tD ' 0 Qf T W U2 V N m OD r co D7 tD M m aMi r ti v WC F- Z_ Cl) co T- m 0 d LO O M to r M ti t70 N to O r w C4 N CD O N m 0o0 0000 N 0 N N r M O w 000 N N COD O W) le LO C:l le O T- V ti M dtV M 00 rL M w b o� O T i. r ►� M N N � r r r M N Cl) to r m 0000 o V W C t6 d Cl) O) tD i N r M > U co co N N 0 N 0 00 N r 00 ' Q OD M r r N tD J Q C 0 m P% C T a r �. N N O O M N tD IT 00 W N t0 m r ~ to h O) r L6 l w O O U) 00 r O O m r U ti N N r M to 41) O Q Z W LU 2 m H D W Q J W Z Q z CL O m U Q N Q C O C N N CL w L U t0 W .1 n 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