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HomeMy WebLinkAbout6/1/2006 AGENDA BACKUPCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 1, 2006 No.: 3.a. CONSENT CALENDAR Type of Action: ADOPT RESOLUTIONS subject: ADOPT RESOLUTIONS ACCEPTING PUBLIC SEWER IMPROVEMENTS AND OFFERS OF DEDICATION FROM REBECCA S. LINDSTROM AND LINHARES LANE LLC IN THE ALAMO AREA, JOB 5791, PARCELS 2 AND 3 Submitted By: Initiating Dept /Div.: Molly Mullin, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: M. Mullin M. C. Swanson A. Farrell General ISSUE: A resolution of the Board of Directors is required to accept public sewer improvements and offers of dedication, and to authorize staff to record documents. RECOMMENDATION: Adopt resolutions accepting public sewer improvements and offers of dedication, and authorizing staff to record the documents with the Contra Costa County Recorder. FINANCIAL IMPACTS: None. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: The Board of Directors regularly accepts easements and public sewer improvements by resolution. The recommended resolutions will accept easements that are required for a recent public sewer extension in Linhares Lane in Alamo (as shown on Attachment 1). Staff has reviewed the easement documents, inspected the public sewer improvements, and determined that they are in compliance with District standards. RECOMMENDED BOARD ACTION: Adopt resolutions accepting Job 5791 public sewer improvements and offers of dedication from Rebecca S. Lindstrom and from the Linhares Lane LLC. Authorize recording of the resolutions with the Contra Costa County Recorder. Page 1 of 2 N: \ENVRSEC \Position Papers \Mullin\2006 \5791 Pos Paper Adopt Res 6- 1- 06.doc Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 1, 2006 No.: 3.b. CONSENT CALENDAR Type of Action: ACCEPT CONTRACT WORK Subject: ACCEPT THE CONTRACT WORK FOR THE SOLIDS CONDITIONING BUILDING VENTILATION IMPROVEMENTS PROJECT, PHASE 2, DISTRICT PROJECT 7227, AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION Submitted By. Initiating Dept.Miv.: Gary E. Rathunde, Associate Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: G. Rathunde B. Thani A. Farrell ISSUE: Construction has been completed on the Solids Conditioning Building Ventilation Improvements Project, Phase 2, District Project 7227, and the work is now ready for acceptance. RECOMMENDATION: Accept the contract work for the Solids Conditioning Building Ventilation Improvements Project, Phase 2, District Project 7227, 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 3090. BACKGROUND: In 1997, a study was conducted on the ventilation flow patterns in the Solids Conditioning Building, and indicated there were several areas in the building that had little or no ventilation airflow. This loss of air circulation could cause build -up of odors, hydrogen sulfide, and carbon monoxide. This project installed two air handlers to supply tempered air to the centrifuge and cake pump areas; installed five new supply air fans in the existing plenum; installed a new exhaust air fan system to ventilate the centrifuge and cake pump areas; and replaced two auxiliary air fans associated with the furnaces to act as backups to the two existing shaft cooling air fans. On June 2, 2005, the Board of Directors awarded a contract for the construction of the project to Monterey Mechanical Company. The Notice to Proceed was issued on June 27, 2005. The work was substantially completed in April 2006. The remaining items of work consist of minor punch -list items, which do not affect the project acceptance. KTESUP \Position Papers \Rathunde \7227 Accept.doc Page 1 of 2 POSITION PAPER Board Meeting Date: June 1, 2006 subject: ACCEPT THE CONTRACT WORK FOR THE SOLIDS CONDITIONING BUILDING VENTILATION IMPROVEMENTS PROJECT, PHASE 2, DISTRICT PROJECT 7227, AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION The total authorized budget for the project is $1,565,000. 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 Solids Conditioning Building Ventilation Improvements Project, Phase 2, District Project 7227, and authorize the filing of the Notice of Completion. N:\PESUP \Position Papers \Rathunde \7227 Accept.doc Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 1, 2006 No.: 3.c. CONSENT CALENDAR Type of Action: ACCEPT CONTRACT WORK/AUTHORIZE NOTICE OF COMPLETION subject: ACCEPT THE CONTRACT WORK FOR THE TREATMENT PLANT PROTECTIVE COATING, PHASE 3, DISTRICT PROJECT 7233, AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION Submitted By: Initiating Dept. /Div.: Nathan Hodges, Assistant Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION. 4t N. Hodges B. Than A. Farrell General ISSUE: Construction has been completed on the Treatment Plant Protective Coating, Phase 3, District Project 7233, and the work is now ready for acceptance. RECOMMENDATION: Accept the contract work for the Treatment Plant Protective Coating, Phase 3, District Project 7233, and authorize the filing of the Notice of Completion. FINANCIAL IMPACTS: None related to this action. Z ALTERNATIVES /CONSIDERATIONS: Not Applicable. Filing the Notice of Completion is required under California Civil Code Section 3093. BACKGROUND: This project is part of the long -term protective coating program for the treatment plant. Coating work took place at the secondary clarifiers, electrical substations throughout the treatment plant and aeration tanks (see Attachments 1A and 1 B for work locations). Protective coatings were applied to submerged steel, piping, conduits and electrical enclosures. Work also included tape wrapping of 24 -inch aeration headers to extend their useful life, and construction and expansion joints in the Aeration Tanks were sealed. Piping was also replaced where significant amounts of corrosion had taken place or to provide operational flexibility. This work included replacing a 3 Water pipe manifold in the Pump and Blower Building, sludge piping in the Solids Conditioning Building and DAF area, and a new sump to collect discharge from the clearwell under - drain. South Quad Clarifier No. 4 sustained damage in August 2005. Groundwater pressure built up and caused the bottom slab to lift. With the slab uplift, the clarifier mechanism was uplifted and shifted out of plumb. The bottom slab was also damaged. In NAPESUMPosition Papers \Hodges \7233 Acceptanm.doc Page 1 of 4 POSITION PAPER Board Meeting Date: June 1, 2006 Subject: ACCEPT THE CONTRACT WORK FOR THE TREATMENT PLANT PROTECTIVE COATING, PHASE 3, DISTRICT PROJECT 7233, AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION January 2006, the Board of Directors authorized a settlement agreement with the Contractor that stipulated the extent of repair work and cost sharing. Work has been completed for the repair to South Quad Clarifier No. 4. The bottom slab has been restored and the clarifier mechanism leveled. The clarifier returned to service May 1, 2006. On May 5, 2005, the Board of Directors authorized the award of a contract for the construction of the project to Kaweah Construction Company. The Notice to Proceed was issued on May 31, 2005. The project was substantially complete on May 15, 2006. The remaining items of work consist of minor punch -list items that do not affect the project acceptance. The total authorized budget for the project is $1,912,000. The budget includes the cost of construction as well as the cost of engineering design, District forces, testing services, and contractor services. An accounting of the project costs will be provided to the Board of Directors 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 Protective Coating, Phase 3, District Project 7233, and authorize the filing of the Notice of Completion. N:\PESUP \Position Papers \Hodges \7233 Acceptance.doc Page 2 of 4 0 V N Q O 0 150 300 FEET f 0 UAREA 1 — SUBSTATION 33 0 U U / AREA 1 - CLARIFIERS SUBSTATION 34 DAF AREA 2 RECYCLE MPS AERATION BASINS AREA 7 oU° AREA 5 - WLareh°use �CIO SUBSTATION 73 Q�� o o � AREA 8 - // SLUDGE CONTROL NOS BLDG. / AREA 6 - SUBSTATION 81--- \ AREA 4 ° ,* \ 7UBSTATION 52 5 i�� AREA 10 - PUMP & BLOWER BLDG. 2 M N s Y central Contra Costa TREATMENT PLANT PROTECTIVE COATING Attachment Sanitary District AND PIPING RENOVATIONS, PHASE 3 District Project 7233 1A 7 Project Area Locations N Page 3 of 4 AREA 11 - DRAINAGE SUMP & PIPELINE AREA 3 - SUBSTATION 40 0 150 300 FEET Central Contra Costa TREATMENT PLANT PROTECTIVE COATING Attachment Sanitary District AND PIPING RENOVATIONS, PHASE 3 District Project 7233 1B Project Area Locations O Page 4 of 4 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 1, 2006 Type of Action: INFORMATIONAL No.: 3.d. CONSENT CALENDAR subject: ADVISE THE BOARD OF THE CLOSEOUT OF THE WALNUT CREEK SEWER RENOVATIONS, PHASE 3, DISTRICT PROJECT 5929 submitted By: Initiating Dept /Div.: Paul Seitz, Associate Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION. PW a P. Seitz A. AntffiMak cki A. Fa General ISSUE: All work has been completed on the Walnut Creek Sewer Renovations, Phase 3, District Project 5929, and this project can now be closed out. RECOMMENDATION: Close out the project. FINANCIAL IMPACTS: This closeout will result in $131,807 being returned to the Collection System Program. Attachment 1 shows the project expenditures by category. ALTERNATIVES /CONSIDERATIONS: Not applicable. BACKGROUND: Work completed under this project included the reconstruction of approximately 7,100 linear feet of 6- and 8 -inch sewer lines in thirteen (13) locations (see Attachment 1 for map). Five (5) sites were located in the public right of way, five (5) sites in easements and private streets, and the remaining three (3) sites were in both easements and the public right of way. Construction of the sewers in easements involved close cooperation with customers for site access and restoration. On June 2, 2005, the Board of Directors authorized the award of a construction contract for this work for $1,387,055 to California Trenchless, Inc. The contractor was issued a Notice to Proceed that was effective July 11, 2005, with a completion date of January 11, 2006. The District had beneficial use of the work on December 6, 2005. The remaining items of work consisted of punch -list items, which have since been completed. The original construction contract amount was $1,366,095. Construction change orders were issued in the total amount of $48,811. Change orders for the project included $40,724 for added sites and work, and $8,087 for changed site conditions (e.g., unknown utilities, concrete). The project was bid with the provision for sites, as identified by the Collection System Division, to be added during the construction of the project. The total amount paid to the Contractor was $1,414,906. N: \PESUP \Cbradley \Position Papers\2006\June \5929 - Closeout Position Paper.doc Page 1 of 4 POSITION PAPER Board Meeting Date: June 1, 2006 subject: ADVISE THE BOARD OF THE CLOSEOUT OF THE WALNUT CREEK SEWER RENOVATIONS, PHASE 3, DISTRICT PROJECT 5929 The total authorized budget for the project was $2,083,000, which included a contingency of $207,945. The total project cost was $1,951,193, which is approximately 6.3% less than the budgeted amount. The project closeout will result in $131,807 being returned to the Collection System Program (see Attachment 2 for Expenditure Summary). RECOMMENDED BOARD ACTION: This item is presented to the Board of Directors for information. No action is necessary. N: \PESUP \Cbradley \Position Papers\2006 \June \5929 - Closeout Position Paper.doc Page 2 of 4 Central Contra Costa Sanitary District Walnut Creek Renovations Phase 3 CCCSD 5929 Page 3 of 4 Attachment ATTACHMENT 2 EXPENDITURE SUMMARY WALNUT CREEK SEWER RENOVATIONS, PHASE 3 DISTRICT PROJECT 5929 ACTIVITY COST Total Budget $2,083,000 Construction Contract $1,366,095 Orders $48,811 -Change Change Orders - % of Construction 3.6% Total Construction Amount $1,414,906 Engineering, Design, Construction Management, Administration $525,862 Engineering, Design, CM, Admin - % of Construction 37.2% TOTAL PROJECT EXPENDITURES $1,951,193 AMOUNT TO BE RETURNED TO THE COLLECTION SYSTEM PROGRAM $131,807 N: \PESUP \Cbradley \Position Papers\2006\.June \5929 - Closeout Position Paper.doc Page 4 of 4 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 1, 2006 No.: 3.e. CONSENT CALENDAR Type of Action: AUTHORIZE ATTENDANCE Subject: AUTHORIZE TWO CHEMISTS' ATTENDANCE AT DEMONSTRATIONS OF INDUCTIVELY COUPLED PLASMA / MASS SPECTROMETERS IN SEATTLE, WASHINGTON Submitted By: Bhupinder S. Dhaliwal Laboratory Superintendent Initiating Dept./Div.: Operations / Plant Operations REVIEWED AND RECOMMENDED FOR BOARD ACTION: B. -s /D _ B. Dhaliwal J. Kelly General ISSUE: Specific approval by the Board of Directors is required for travel that is out of state. RECOMMENDATION: Approve the attendance of two Chemists at a demonstration of inductively coupled plasma / mass spectrometers (ICP /MS) in Seattle, Washington. FINANCIAL IMPACTS: The total approximate cost will be $1,000. There are sufficient funds in the Operations Department Technical Training, Conferences, and Meetings budget to cover the cost of this trip. ALTERNATIVES /CONSIDERATIONS: The District could not attend the demonstrations or could send only one attendee. BACKGROUND: The District's Environmental Laboratory currently uses atomic absorption (AA) technology to meet our regulatory requirements for metals analyses. However, AA technology cannot accurately achieve the detection requirements currently specified or proposed by the Regional Water Quality Control Board (RWQCB). An ICP /MS has been included in the fiscal. year 2006 — 2007 budget because it has lower detection limits, is not prone to metal interferences, and significantly increases productivity as compared to AA. The District's Environmental Laboratory staff, working with Purchasing staff, has identified two suppliers, Agilent Technology and Thermo Electron Corporation, as the two most qualified suppliers of ICP /MS instruments to meet the District's needs. At this time, it is appropriate to witness demonstrations of the ICP /MS at both suppliers' laboratories and at a production laboratory. Page 1 of 2 N: \POSUP \Correspondence \Position Papers\2006 \Seattle Visit.doc POSITION PAPER Board Meeting Date: June 1, 2006 Subject AUTHORIZE TWO CHEMISTS' ATTENDANCE AT DEMONSTRATIONS OF INDUCTIVELY COUPLED PLASMA / MASS SPECTROMETERS IN SEATTLE, WASHINGTON Laboratory staff is scheduled to visit the Thermo Electron Corporation Demonstration Laboratory in Santa Clara on June 6, 2006. However, Agilent Technology's demonstration laboratory is in Seattle, Washington. Additionally, we have learned that King County Environmental Laboratory recently purchased ICP /MS from both Agilent Technology and Thermo Electron Corporation. Staff requests approval to have two Chemists attend ICP /MS demonstrations at Agilent Technologies Demonstration Laboratory and King County Environmental Laboratory in June or early July. Attendance by two Chemists is requested because the District would benefit both by their combined experience of running instruments similar to ICP /MS and by having two perspectives from the observers attending the demonstrations. RECOMMENDED BOARD ACTION: Authorize two Chemists' attendance at demonstrations of ICP /MS in Seattle, Washington. Page 2 of 2 N: \POSUP \Correspondence \Position Papers\2006 \Seattle Visit.doc CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT ON THE FY 2006 -2007 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND BUDGET AND SELF - INSURANCE FUND BUDGET, AND FOR THE ESTABLISHMENT OF THE FY 2006 -2007 SEWER SERVICE CHARGE RATES, AND ON PLACING CURRENT SEWER SERVICE CHARGES ON THE COUNTY TAX ROLL FOR COLLECTION SUGGESTED AGENDA June 1, 2006 President Menesini will announce that two separate public hearings will be conducted: (1) Approval of the FY 2006 -07 Operations and Maintenance (0 &M) Budget, Debt Service Fund Budget and Self- Insurance Fund Budget, and establishment of the 2006 -07 Sewer Service Charge rates; and (2) Collection of the FY 2006 -07 Sewer Service Charges on the County tax roll Call for staff report on both Public Hearings. 2. Open first public hearing and call for comments. 3. Close public hearing. 4. Board deliberation, and: a. Vote to approve the FY 2006 -07 0 &M Budget, Debt Service Fund Budget and Self- Insurance Fund Budget, incorporating sewer service charge as determined by resolution to be considered separately; and b. Vote to adopt resolution setting sewer service charge for FY 2006- 07, to be incorporated in the FY 2006 -07 budget. •• C. Request additional information from staff and continue the public hearing to June 15, 2006. 5. Open second public hearing and call for comments. 6. Close public hearing. 7. Board deliberation, and: Vote to adopt resolution allowing collection of sewer service charge on the County tax roll. 4.a. r TOTAL DISTRICT REVENUE & EXPENSE 2006 — 2007 BUDGET Total District Operations & Sewer Maintenance Construction Revenues $85,764,000 $46,976,000 $38,788,000 Expenses 88,959,356 54,207,356 34,752,000 Revenues Over Expenses ($3,1913561 ($7.231.3561 4 36,000 Funds Available 06 -30 -07 $66,500,000 $7,100,000 $59,400,000 N: \ADMINSUP\ADMIN \RATCLIFF\Budget Overheads 2006- 2007.doc 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 \RATCLIFF\Budget Overheads 2006- 2007.doc 2006 -2007 Budget $46,976 54,207 7 231 $7,091 % Increase (Decrease) (1.8 %) 14.9% KEY INCREASES 2005 -2006 BUDGET TO 2006 -2007 BUDGET N :WDMINSUPVWDMIN\RATCLIFF\Budget Overheads 2006- 2007.doc Dollar Increase (Decrease) % Increase 2005 -2006 Budget $47,188,613 Salaries 1,000,448 5.0% Benefits 3,442,985 30.0 Chemicals 105,000 9.8 Utilities 958,280 19.6 Repairs & Maintenance 137,465 4.7 Hauling & 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 14.9% N :WDMINSUPVWDMIN\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 � N NP CM o V v � F- D w CD Q m °o 0 °O p d 0 0 O N CM LO O LO cyi N co Mil C 0000 C Q CD CD C m � O N Z O N :D N LL p w �- V Z W ° °O °0 0 N O O O a (D � ti � Q 0 co Ce) O U*)Il N Z 0 N ta U LL J F- w w U) 0 Q m Cf) to O Cl) o � N Q O w O N > v O a� CL x a�i w LL STAFF RECOMMENDATIONS 1. Approve FY 2006 -2007 Operations and Maintenance Budget, Debt Service Fund Budget and Self- Insurance Fund Budget. 2. Approve Resolution establishing the 2006 -2007 Sewer Service Charge rate at $289. 3. Approve Resolution authorizing collection of 2006 -2007 Sewer Service Charges on County tax roll. N :\ADMINSUPWDMIN \RATCLIFF\Budget Overheads 2006- 2007.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 1, 2006 No.: 4.a. HEARINGS Type of Action: CONDUCT PUBLIC HEARING subject. CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT ON THE FY 2006 -2007 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND BUDGET AND THE SELF - INSURANCE FUND BUDGET, AND FOR THE ESTABLISHMENT OF THE 2006 -2007 SEWER SERVICE CHARGE RATES, AND ON PLACING CURRENT SEWER SERVICE CHARGES ON THE COUNTY TAX ROLL FOR COLLECTION Submitted By: DEBBIE RATCLIFF CONTROLLER Initiating Dept /Div.: ADMINISTRATIVE /FINANCE & ACCOUNTING REVIEWED AND RECOMMENDED FOR BOARD ACTION. D. Ratcli . yt sgraves General ISSUE: The District Code and State law require public hearings for the establishment of the Sewer Service Charge rates for FY 2006 -2007 and on placing the current Sewer Service Charges on the County tax roll for collection. Although not required by law, the District will hold a public hearing to receive public comment on the FY 2006 -2007 Operations and Maintenance Budget, Debt Service Fund Budget and the Self - Insurance Fund Budget. RECOMMENDATION: Conduct two separate Public Hearings and upon their respective conclusions, take the following actions, if considered appropriate: Approve the FY 2006 -2007 Operations and Maintenance Budget (O &M), Debt Service Fund Budget and Self- Insurance Fund Budget • Approve a resolution that establishes the 2006 -2007 Sewer Service Charge rate schedule of $289 per residential unit. Approve a resolution authorizing collection of the 2006 -2007 Sewer Service Charges on the County tax roll. FINANCIAL IMPACTS: The draft FY 2006 -2007 O &M Budget is based on a $9 rate increase in the Sewer Service Charge for a total of $289 per residential unit equivalent, allocating $213 to Operations and Maintenance and $76 to the Sewer Construction Fund. Also, a $5 million allocation towards the unfunded liability associated with GASB 45 post retirement benefits is included in the draft 2006 -2007 budget. This allocation will remain unencumbered until action by the Board. The proposed $9 Sewer Service N:\ADMINSUP\ADMIN \POSPAPER \Budget Position Paper - 06- 01- 06.doc POSITION PAPER Board Meeting Date: June 1, 2006 Subject: CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT ON THE FY 2006 -2007 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND BUDGET AND THE SELF - INSURANCE FUND BUDGET, AND ON PLACING CURRENT SEWER SERVICE CHARGES ON THE COUNTY TAX ROLL FOR COLLECTION Charge increase would generate approximately $1,395,000 in new revenue for fiscal year 2006 -2007 to be allocated between O &M and the Sewer Construction Fund. The proposed budget would result in a decrease to O &M reserves at fiscal year end of $7.2 million for a projected O &M reserve balance at June 30, 2007, of $7.1 million. Effective with the 1982 -1983 fiscal year, Contra Costa County imposed a fee for collecting the Sewer Service Charge on the tax roll. The County fee, which approximates $87,000 annually, is more economical than the alternative of direct billing by the District. ALTERNATIVES /CONSIDERATIONS: The Board could decide not to increase the Sewer Service Charge for FY 2006 -2007, keeping the Sewer Service Charge at the current $280, or choose another amount of increase. Staff does not recommend this action. BACKGROUND: The FY 2006 -2007 Operations and Maintenance Budget was submitted for review at the May 18, 2006, Board Meeting. A detailed presentation was made to the Board at that meeting and a copy of the overheads used is attached (see Attachment 1). A legal notice was published in the Contra Costa Times for the June 1, 2006, Public Hearing to receive public comment on the FY 2006 -2007 Operations and Maintenance Budget, Debt Service Fund Budget and the Self- Insurance Fund Budget, for the establishment of the Sewer Service Charge rate for FY 2006 -2007 and on collection of the 2006 -2007 Sewer Service Charges on the County tax roll. It is recommended that two separate hearings be held to consider the matters described. Hearing to receive public comment on the FY 2006 -2007 Operations and Maintenance (OW Budget. Debt Service Fund Budget and Self- Insurance Fund Budget and for the establishment of the Sewer Service Charge rate for 2006 -2007 of 289: The FY 2006 -2007 O &M Budget and Debt Service Fund Budget were submitted to the Board of Directors for initial review at the May 18, 2006, Board Meeting and the Self- Insurance Fund Budget was presented at the April 20, 2006, Board N:\ADMINSUP\ADMIN \POSPAPER \Budget Position Paper - 06- 01- 06.doc POSITION PAPER Board Meeting Date: June 1, 2006 Subject CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT ON THE FY 2006 -2007 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND BUDGET AND THE SELF - INSURANCE FUND BUDGET, AND ON PLACING CURRENT SEWER SERVICE CHARGES ON THE COUNTY TAX ROLL FOR COLLECTION Meeting. All three are scheduled for approval at the June 1, 2006, Board Meeting. Upon approval of the three budgets and determination of adequate levels of reserves, the Board must establish the 2006 -2007 Sewer Service Charge rates. Based on the financial scenario discussed at the Board Financial Planning and Policy Workshop, and subsequent Board meeting presentations, the Board is being asked to approve a resolution establishing the 2006 -2007 Sewer Service Charge rate at $289 (see Attachment 2). Alternatively, the Board can modify the Sewer Service Charge to a different rate, or maintain the current rate for fiscal year 2006 -2007. A second resolution is attached reflecting the "no -rate increase" scenario also presented at the Board Workshop indicating the need for increased rates in the future for this option (see attachment 3). Hearing to consider collection of the FY 2006 -2007 Sewer Service Charges on the County tax roll: The law requires that a public hearing be held each year before the Sewer Service Charge can be placed on the County tax roll. The Sewer Service Charge has been collected on the County tax roll since inception of the service charge in 1976. Collection on the tax roll provides the most economical and efficient means for the District to collect the charges for approximately 105,000 accounts. RECOMMENDED BOARD ACTION: Conduct two separate public hearings and upon their respective conclusions, take the following actions, if considered appropriate: • Approve the FY 2006 -2007 Operations and Maintenance Budget, Debt Service Fund Budget and Self- Insurance Fund Budget and Approve a resolution establishing the 2006 -2007 Sewer Service Charge rate at $289. Approve a resolution authorizing collection of the FY 2006 -2007 Sewer Service Charges on the County tax roll. N:\ADMINSUP\ADMIN \POSPAPER \Budget Position Paper - 06- 01- 06.doc ATTACHMENT 1 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 103% 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 1S3.195.3561 N: \ADMINSUP\ADMIN \RATCLIFF\Budget Overheads 2006- 2007.doc Operations & Sewer Maintenance Construction $46,976,000 $38,788,000 54,207,356 34,752,000 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 29 N: \ADMINSUP\ADMIN \RATCLIFF\Budget Overheads 2006- 2007.doc 2006 -2007 Budget $46,976 54,207 72 1 $7,091 Increase (Decrease) (1.8 %) 14.9% U_ H N Z a v Z O U J H Z W U CO H LL W Z W m 0 Z a W J U_ F- CO) rte, Q C O �0 C N N N Q. w r U N U) (D O Cl N s co) Cl) r N 01 ... V y M N ' Of^ O to y C CO N O 0 eT O Z v A v d M N Cl) r O >So F U v � O m ttOrl a00o ^ N Z tC et A r r tD N � O C m t~A 001 U N M N O N O to WW O ++ t0 ' M N C01 (n N N 43 r O tp tD {� Cl) N O G m N r N t0 N O 00 M N r W V d d N 0 tD 00 r Of tD M Q Z >So v v W Q ^ M M O N 14 O r O N M t0 r M pt 00 t. IV N 000 t0 e0- y 0= Co C ao r ao Ol N O Z N 04 r M O t0 000 N 001 O 10n LO 00 -0 O r v 1� CO) d M 000 1` M 1001 w O G r 1` r N N W) O m r r N V) N P� 00 co r y m W o t) C m N M N d v r 0 F- U F— O N N co 0 N C 00 h r 00 ' �! ti r J Q tD 3 CD m O N O ^ r e! r �... N O t0 M N t0 IV 00 O1 N 0 Ol r ~ 00 4) 1IL tC r 1 ' M N M 000 1` 0 It M O 1p 00 r O tC O N N r Cl) 44 tR O g z W W m t= G F- a LL Q J Q O m V tan y Q C O �0 C N N N Q. w r U N U) (D O Cl N s KEY LABOR COSTS (000 Omitted) N: \ADMINSUP\ADMIN \RATCLIFF\Budget Overheads 2006- 2007.doc 2005 -2006 2006 -2007 Increase Budget Budget (Decrease) Salaries & Wages $20,087 $21,087 $1,000 Retirement 6,723 7,481 758 Medical Insurance 4,073 4,529 456 Dental Insurance 653 659 6 Workers' Compensation 607 510 (97) Vacancy Factor (425) (510) (85) Capitalized Adm. (2,256) (2,963) (707) Overhead All Other 2,105 5,218 3113 Total Labor Costs 11 4 444 N: \ADMINSUP\ADMIN \RATCLIFF\Budget Overheads 2006- 2007.doc 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 5.0% Benefits 3,442,985 30.0 Chemicals 105,000 9.8 Utilities 958,280 19.6 Repairs & Maintenance 137,465 4.7 Hauling & 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 14.9% 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 ATTACHMENT 2 RESOLUTION NO. A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT SETTING SEWER SERVICE CHARGES TO BE IMPOSED FOR 2006 -2007 WHEREAS, the District has previously developed and instituted a Sewer Service Charge Program to finance the services and facilities furnished by the District, and WHEREAS, on June 3, 2004, the Board of Directors of the District conducted a public hearing and adopted Ordinance No. 232 authorizing the Sewer Service Charge rate to be $280 per Residential Unit Equivalent (RUE) for fiscal year 2004 -05, $288 per RUE in 2005 -06, and $297 per RUE in 2006 -07; and WHEREAS, provisions of Ordinance No. 232, now encoded as Section 6.34.010B of District Code, provide that the District Board shall determine whether the increases previously established in rates for the fiscal years of 2005 -2006 and 2006- 2007 continue to be necessary after consideration of the District's financial condition and proposed budget; and WHEREAS, on April 7, 2005, the Board of Directors of the District determined that the increase to $288 per RUE in the Sewer Service Charge rate previously approved for fiscal year 2005 -06, was not necessary and the rate to be imposed for fiscal year 2005 -06 would remain at $280 per RUE; and WHEREAS, the Board of Directors of the District has reviewed the projected revenues and has determined that a Sewer Service Charge rate of $289 per RUE should be imposed for fiscal year 2006 -07, such rate being less than the amount of $297 per RUE previously authorized by Ordinance No. 232. NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: Section 1. The Board of Directors finds that, notwithstanding Ordinance No. 232 set the rate per RUE for 2006 -2007 at $297, the amount to be imposed pursuant to Section 6.34.0108 of the District Code shall be in the lesser amount of $289 per RUE for fiscal year 2006- 2007. Section 2. As of July 1, 2006, Sewer Service Charges for each User Group shall be at the rates set forth in Schedule of Sewer Service Charge Rates calculated on the basis of $289 per RUE as presented in Exhibit "A" to this Resolution, which exhibit is hereby incorporated in full herein by this reference, and shall continue thereafter in effect year to year until further action of the Board of Directors. Section 3. The rates set forth in Exhibit "A" shall be published once in the Contra Costa Times, a newspaper of general circulation within the Central Contra Costa Sanitary District. PASSED AND ADOPTED this 1St day of June 2006, by the Board of Directors of the Central Contra Costa Sanitary District 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: Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to Form: Kenton L. Alm Counsel for the District N:\ADMINSUP\ADMI N \RATCLI FF\AltemativeResolutionRe_ AmendingD istrictCodesection6.34 #1.doc EXHIBIT "A" Effective on July 1, 2006, the residential and non - residential Sewer Service Charge rates for users of the District system shall be as set forth in the following table, and shall continue thereafter in effect until further action of the Board of Directors. User Group Fiscal Year 2006 — 2007 Residential (rate per living unit): Single Family Dwellings, Mobile Home, Townhouses, Condominium Units, Multi- Family Units $289.00 Commercial / Non - Industrial (rates per Hundred Cubic Feet (Rates per Hundred Cubic Feet) Bakeries $7.39 Supermarkets w /garbage disposals $5.92 Mortuaries $5.58 Restaurants $5.81 Others $2.85 Minimum Annual Charge $301.00 Industrial Flow per million gallons $1,474.00 Biochemical Oxygen (demand per 1,000 lbs. ) $615.00 Suspended Solids per 1,000 lbs. $439.00 Demand per million gallons per day $177,128.00 Minimum Annual Charge $301.00 Special Discharge Permits & Determined Contractual Agreements: Individual) N:\ADMINSUP\ADMI N \RATCLI FF\ AlternativeResolubonRe_ AmendingDistdctCodeSection6 .34#1.doc User Group Fiscal Year 2006 —2007 Institutional (rates per Hundred Cubic Feet): Churches $2.68 Schools $2.68 Fraternal & Service Organizations $2.68 Local & State Institutions $2.68 Other Tax Exempt (Except Federal) $2.68 Federal Institutions $2.68 Utilities with Special Tax Status $2.68 Independent Living Facilities, Rest Homes, & Convalescent Hospitals $2.68 Minimum Annual Charge $301.00 N:\ADMINSUP\ADMIN \RATCLI FF\AltemativeResolutonRe_ AmendingDistdctCodeSection6 .34 #1.doc ATTACHMENT 3 ALTERNATIVE 2 RESOLUTION NO. A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT SETTING SEWER SERVICE CHARGES TO BE IMPOSED FOR 2006 -2007 WHEREAS, the District has previously developed and instituted a Sewer Service Charge Program to finance the services and facilities furnished by the District, and WHEREAS, on June 3, 2004, the Board of Directors of the District conducted a public hearing and adopted Ordinance No. 232 authorizing the Sewer Service Charge rate to be $280 per Residential Unit Equivalent (RUE) for fiscal year 2004 -05, $288 per RUE in 2005 -06, and $297 per RUE in 2006 -07; and WHEREAS, provisions of Ordinance No. 232, now encoded as Section 6.34.01013 of District Code, provide that the District Board shall determine whether the increases previously established in rates for the fiscal years of 2005 -2006 and 2006- 2007 continue to be necessary after consideration of the District's financial condition and proposed budget; and WHEREAS, on April 7, 2005, the Board of Directors of the District determined that the increase to $288 per RUE in the Sewer Service Charge rate previously approved for fiscal year 2005 -06, was not necessary and the rate to be imposed for fiscal year 2005 -06 would remain at $280 per RUE; and WHEREAS, the Board of Directors of the District, has reviewed the projected revenues and has determined that the Sewer Service Charge rate of $280 per RUE should be imposed for fiscal year 2006 -07, such rate being less than previously authorized by Ordinance No. 232. NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: Section 1. The Board of Directors finds that, notwithstanding Ordinance No. 232 set the rate per RUE for 2006 -2007 at $297, the amount to be imposed pursuant to Section 6.34.01 013 of the District Code shall be in the lesser amount of $280 per RUE. Section 2. As of July 1, 2006, Sewer Service Charges for each User Group shall be at the rates set forth in Schedule of Sewer Service Charge Rates calculated on the basis of $280 per RUE as presented in Exhibit "A" to this Resolution, which exhibit is hereby incorporated in full herein by this reference, and shall continue thereafter in effect year to year until further action of the Board of Directors. Section 3. The rates set forth in Exhibit "A" shall be published once in the Contra Costa Times, a newspaper of general circulation within the Central Contra Costa Sanitary District. PASSED AND ADOPTED this 1St day of June 2006, by the Board of Directors of the Central Contra Costa Sanitary District 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: Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to Form: Kenton L. Alm Counsel for the District N:\ADMINSUP\ADMIN \RATCLI FF\ AlternativeResolutionRe_ AmendingDistrictCodeSection6 .34#2.doc EXHIBIT "A" Effective on July 1, 2006, the residential and non - residential Sewer Service Charge rates for users of the District system shall be as set forth in the following table, and shall continue thereafter in effect until further action of the Board of Directors. User Group Fiscal Year 2006 —2007 Residential (rate per living unit): Single Family Dwellings, Mobile Home, Townhouses, Condominium Units, Multi- Family Units $280.00 Commercial / Non - Industrial (rates per Hundred Cubic Feet (Rates per Hundred Cubic Feet) Bakeries $7.16 Supermarkets w /garbage disposals $5.41 Mortuaries $5.10 Restaurants $5.30 Others $2.60 Minimum Annual Charge $292.00 Industrial Flow per million gallons $1,428.00 Biochemical Oxygen (demand per 1,000 lbs. ) $596.00 Suspended Solids per 1,000 lbs. $425.00 Demand per million gallons per day $171,612.00 Minimum Annual Charge $292.00 Special Discharge Permits & Determined Contractual Agreements Individual) N:\ADMI NSUP\ADMI N \RATCLI FF\AltemativeResolutionRe_ AmendingDistdctCodeSection6 .34 #2.doc -T User Group Fiscal Year 2006 — 2007 Institutional (rates per Hundred Cubic Feet): Churches $2.60 Schools $2.60 Fraternal & Service Organizations $2.60 Local & State Institutions $2.60 Other Tax Exempt (Except Federal) $2.60 Federal Institutions $2.60 Utilities with Special Tax Status $2.60 Independent Living Facilities, Rest Homes, & Convalescent Hospitals $2.60 Minimum Annual Charge $292.00 NAADMI NSURADMI N \RATCLI FF\ AltemativeResolutionRe_ AmendingDistrictCodeSection6 .34 #2.doc RESOLUTION NO. ATTACHMENT 4 A RESOLUTION DIRECTING THAT THE FY 2006 -2007 SEWER SERVICE CHARGES BE COLLECTED ON THE COUNTY TAX ROLL WHEREAS, the District has previously developed and instituted a Sewer Service Charge Program for services and facilities furnished by the District to finance yearly Operation and Maintenance of the District; and WHEREAS, the Sewer Service Charge is collected through a direct charge to the users: and WHEREAS, the District Code provides that the District may elect to collect current and delinquent charges on the tax rolls as provided by Sections 5470 and following of the Health & Safety Code; and WHEREAS, it is considered to be economically and efficient to continue the existing practice and collect the Sewer Service Charges for the 2006 -2007 fiscal year on the county tax roll; NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Central Contra Costa Sanitary District, that the FY 2006 -2007 Sewer Service Charges are to be collected on the County of Contra Costa tax roll. PASS AND ADOPTED this 1St day of June, 2006, by the District Board of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NAYS: Members ABSENT: Members President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California Countersigned: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to form: Kenton L. Alm District Counsel N:\ ADMINSUP \ADMIN \RATCLIFF\Resoluton 2006 -2007 sewer service charges.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 1, 2006 No.: 6.a. BIDS AND AWARDS Type of Action: AWARD A CONSTRUCTION CONTRACT /AUTHORIZE EXECUTION OF CONTRACT DOCUMENTS /AUTHORIZE PROFESSIONAL SERVICES AGREEMENT Subject: AWARD A CONSTRUCTION CONTRACT TO KAWEAH CONSTRUCTION COMPANY, THE LOWEST RESPONSIVE BIDDER, AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS, AND AUTHORIZE A PROFESSIONAL SERVICES AGREEMENT WITH ATI ARCHITECTS AND ENGINEERS FOR THE CONSTRUCTION OF THE CHEMICAL FEED BUILDING RENOVATION PROJECT, DISTRICT PROJECT NO. 7226 Submitted By. Initiating Dept/Div.: Clint T. Shima, Assistant Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: nT- C. Shima B. han A. Farrel General ISSUE: On May 16, 2006, sealed bids were received and opened for construction of the Chemical Feed Building Renovation Project, District Project 7226. The Board of Directors must award the contract or reject bids within 50 days of the bid opening. Authorization of the Board of Directors is required for the General Manager to execute professional service agreements in an amount greater than $50,000. RECOMMENDATION: Award a construction contract and authorize the General Manager to execute the Contract Documents and a professional services agreement. FINANCIAL IMPACTS: Construction costs are approximately $1,835,000, including bid price, contingency and construction management. ALTERNATIVES /CONSIDERATIONS: 1. Award Contract - The alternative would be to reject all bids. Staff does not recommend that the Board reject all bids. 2. Authorize Agreement - The professional services agreement with ATI Architects and Engineers (ATI) is for construction support services (shop drawing review and responding to design clarifications). The District does not have the staff available to provide these services. In addition, the construction support services are normally provided by the design firm to maintain consistency and ensure the design intent is met. BACKGROUND: The Chemical Feed Building (see Attachment 1 for Project location) was constructed as part of the original treatment plant expansion, completed in 1978, WTESUP \Position Papers \Shima \7226 - Award.doc Page 1 of 6 POSITION PAPER Board Meeting Date: June 1, 2006 subject. AWARD A CONSTRUCTION CONTRACT TO KAWEAH CONSTRUCTION COMPANY, THE LOWEST RESPONSIVE BIDDER, AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS, AND AUTHORIZE A PROFESSIONAL SERVICES AGREEMENT WITH ATI ARCHITECTS AND ENGINEERS FOR THE CONSTRUCTION OF THE CHEMICAL FEED BUILDING RENOVATION PROJECT, DISTRICT PROJECT NO. 7226 to house the equipment used to inject lime into the primary influent up until 1987. Changes in the requirements for wastewater treatment have made this lime injection system obsolete. This equipment is no longer in use, but the remnants of the lime chemicals continue to accelerate the corrosion to the inside of the Chemical Feed Building. The diversion channel, under the Chemical Feed Building, divides the incoming wastewater flow among the primary treatment facilities. This submerged concrete channel was built as part of the original headworks facilities (circa 1950) and has been subjected to a highly corrosive environment. In July 2004, District Staff executed a Professional Services Agreement with ATI in the amount of $27,000, for the inspection and assessment of the diversion channel under the Chemical Feed Building and a structural assessment of the building. ATI found that the channel was in fair condition, however it contained excessive grit and solids due to the geometry of the channel. ATI also found that the south end of the building, which houses the lime equipment, has suffered severe corrosion, to the extent that the building has lost its structural integrity. The scope of this project includes replacing two (2) sluice gates at the south end of the diversion channel, restoring the structural stability of the building, removing all abandoned or out -of- service equipment and piping /conduits, preparation and painting of all interior structural steel (lead -paint stabilization, as required), filling -in and coating of the bottom of the diversion channel and replacing corroded angle bends within the diversion channel. Plans and specifications for this project were produced by ATI and District staff. The Engineer's estimate for construction was $950,000. The project was advertised on April 13 and 18, 2006. Two (2) bids, ranging from $1,316,000 to $1,420,000, were received and publicly opened on May 16, 2006. A summary of bids received is shown in Attachment 2. Staff conducted a commercial and technical evaluation of the bids and determined that Kaweah Construction Company is the lowest responsive bidder with a bid amount of $1,316,000. Upon review, the difference in cost between the Engineer's estimate and the low bid price is primarily attributed to increased costs in the metals market and a higher premium for working with and encapsulating the lead -based paint. Staff has contacted several public agencies, engineering consultant firms, and contractors to further understand the reasons behind higher than expected bids for various projects in recent N:\PESUP \Position Papers \Shima \7226 - Award.doc Page 2 of 6 POSITION PAPER Board Meeting Date: June 1, 2006 subject. AWARD A CONSTRUCTION CONTRACT TO KAWEAH CONSTRUCTION COMPANY, THE LOWEST RESPONSIVE BIDDER, AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS, AND AUTHORIZE A PROFESSIONAL SERVICES AGREEMENT WITH ATI ARCHITECTS AND ENGINEERS FOR THE CONSTRUCTION OF THE CHEMICAL FEED BUILDING RENOVATION PROJECT, DISTRICT PROJECT NO. 7226 months. Research suggests that bids are coming in higher than the engineering cost estimates due to limited labor and construction material resources in the market place. In some instances, the low bid has been up to 50 percent higher than the estimate. District staff will perform construction management, contract administration, and construction inspection. Staff recommends retaining ATI to provide support services during construction for this project because ATI helped prepare the plans and specifications and, therefore, has a solid understanding of the project design. The construction support services include reviewing shop drawings and submittals, responding to design questions, evaluating change order requests, and performing site visits to verify compliance with the design intent. A construction support services contract with a cost ceiling of $70,000 has been negotiated with ATI. This will bring the total professional service contract with ATI to $165,000. The additional allocation of funds required to complete this project, as shown in Attachment 3, is $1,800,000. The Chemical Feed Building Renovation Project, District Project 7226 is included in the Treatment Plant Program of the 2005 -2006 Capital Improvement Budget on pages TP -51 through TP -53. Staff has determined that there are adequate funds in the Capital Improvement Budget and Plan for this project. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 15301, since it involves repairs to an existing public facility. Approval of this award establishes the Board of Directors' independent finding that this project is exempt from CEQA. RECOMMENDED BOARD ACTION: Staff recommends the following: Award a construction contract in the amount of $1,316,000 for construction of the Chemical Feed Building Renovation Project, District Project 7226, to Kaweah Construction Company, the lowest responsive bidder, 2. Authorize the General Manager to execute contract documents, and; 3. Authorize the General Manager to execute a professional service agreement not to exceed $70,000 with ATI Architects and Engineers to review shop drawings and submittals, respond to design questions, evaluate change order requests, and perform site visits to verify compliance with the design intent. NAPESUP \Position Papers \Shima \7226 - Award.doc Page 3 of 6 N � O u� 0 150 300 FEET / O 0 M qy O (Ccow�,t �7Y Warehouse RAN VPe�n� I i $ot ON �� \1� 8 \ as PROJECT C SITE t Central Contra Costa CHEMICAL FEED BUILDING Attachment Sanitary District RENOVATION District Project 7226 Project Location Page 4 of 6 ATTACHMENT 2 SUMMARY OF BIDS PROJECT NO.: DP7226 Chemical Feed Buildinq Renovation DATE: May 16, 2006 LOCATION: Martinez, California ENGINEER'S ESTIMATE: $950,000 NUMBER BIDDER Name, Address, Telephone No. BID PRICE Kaweah Construction Company $1,316,000 1 3960 Industrial Blvd, Suite 300 W. Sacramento, CA 95691 D. W. Nicholson Corporation $1,420,000 2 24747 Clawiter Road Hayward, CA 94540 BIDS OPENED BY: /s/ Elaine Boehme DATE: May 16, 2006 Page 5 of 6 ATTACHMENT 3 CHEMICAL FEED BUILDING RENOVATION PROJECT DISTRICT PROJECT NO. 7226 POST - BID / PRE - CONSTRUCTION ESTIMATE Page 6 of 6 % Of No. Item Description Amount Estimated Construction Cost 1 CONSTRUCTION a. Construction Contract $1,316,000 b. Contingency at 20% $263,000 TOTAL CONSTRUCTION $1,579,000 100% 2 CONSTRUCTION MANAGEMENT a. District Forces - Construction Management and Inspection $176,000 SUBTOTAL $176,000 11% b. Consultants - ATI Architects and Engineers $70,000 - SCA Environmental, Inc. $10,000 SUBTOTAL $80,000 5% TOTAL CONSTRUCTION MANAGEMENT $256,000 16% 3 TOTAL CONSTRUCTION PHASE COST $1,835,000 116% 4 TOTAL PREBID EXPENDITURES $140,000 9% 5 TOTAL DESIGN AND CONSTRUCTION MANAGEMENT COST $396,000 25% 6 TOTAL ESTIMATED PROJECT COST $1,975,000 125% 7 FUNDS AUTHORIZED TO DATE $175,000 8 ADDITIONAL ALLOCATION NEEDED TO COMPLETE PROJECT $1,800,000 Page 6 of 6 0 a 0 C a y y 3 x 3 is � a }•y a n } 2 . yy F 3 �F } L aD n 0 U � A (D 0) ;-4 gwoo A O V rGoq a) � A (D 0) ;-4 gwoo A O c 0 c� um J wo C/) C/) 0 a c� 0 ^L LL c c� a� H 'O O a 0" W V O r0w M O O� M N^ � � O O O O O ^ O O O O O O 6 � � N .O U .O W U 4� bA O O C-12 a� �d ct on o N P .P=4 ct cn aA c� U N .O O 4� O 00 ^ d' O O O O O w ct O c c } CIC mc r- r. 4 c c a C14,61 m Q C� 7.a.1) Sanitary Sewer Overflow Waste Discharge Requirements Bill Brennan Collection System Operations Division Manager June 1, 2006 Program Scope / A State Water Resources Control Board (SWRCB) program • Similar to San Francisco RWQCB (Regional Water Quality Control Board) requirements effective December 1, 2004 • CSO's last report to CCCSD Board (March 2, 2006) focused on overflows between December 1, 2004 and December 31, 2005 1 Schedule ► SWRCB adopted the Waste Discharge Requirements (WDR) on May 2, 2006 ► District must submit application for coverage under the WDR by December 2, 2006 Schedule (continued) ► Electronic reporting must begin December 2, 2006 (if the State is ready - otherwise we will continue reporting to the Regional Board) ► A Sewer System Management Plan (SSMP) must be completed by May 2, 2009 2 Summary ► Program will create an electronic database that anyone can access ► District is on track to meet all WDR requirements Summary (continued) / The WDR will exert pressure statewide to reduce sewer system overflows 1 CCCSD will take measures to -continue reducing sewer system overflows 3 4) CL ■ a 0 Em 0 V 4� > '- OC v 0 L a O i Mai r r O ■ Aj Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 1, 2006 No.: 8.a. ENGINEERING Type of Action: AUTHORIZE AGREEMENT subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH HARRIS AND ASSOCIATES TO PROVIDE RELIEF INSPECTORS FOR THE 2006 SUMMER CONSTRUCTION OF CAPITAL IMPROVEMENT PROJECTS Submitted By: Tom Godsey Provisional Senior Engineer Initiating DeptMiv.: Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION. T. Godsey aor_ A. Farrell General M; ISSUE: Board of Directors' authorization is required for the General Manager to execute professional engineering services contracts for amounts greater than $50,000. RECOMMENDATION: Authorize the General Manager to execute an agreement with Harris and Associates to provide relief inspectors on an as- needed basis for the construction of the District's 2006 capital improvement projects. FINANCIAL IMPACTS: The estimated cost for this task is $300,000. ALTERNATIVES /CONSIDERATIONS: There are no open positions available to fill with construction inspectors. BACKGROUND: Summer is the start of the construction season. Several construction projects have recently been awarded by the Board or will shortly be presented to the Board for award in both the Collection System and the Treatment Plant. Engineering Department staff provides construction management and inspection duties on most District projects, and supplements with consultants if and when needed. An evaluation of the workload for the 2006 construction season indicates that hiring two additional inspectors is necessary. On March 24, 2006, Request for Proposals (RFP) were sent to nine (9) professional engineering service and personnel firms, which included: Vali Cooper & Associates Inc., RES Engineers, Inc., BSK Associates, Harris and Associates, CH2M Hill, the Covello Group, Whitley Burchett & Associates, Valley Engineering Group, and Zumwalt NAPESURCbradley \Position Papers\2006\June \Hire Cls 2006.doc Page 1 of 2 POSITION PAPER Board Meeting Date: June 1, 2006 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH HARRIS AND ASSOCIATES TO PROVIDE RELIEF INSPECTORS FOR THE 2006 SUMMER CONSTRUCTION OF CAPITAL IMPROVEMENT PROJECTS Engineering Group. Three firms responded with submittals. Staff selected Harris and Associates as the best firm for supplying construction inspection services. Staff has negotiated an hourly rate from $85 to $115 for the relief construction inspectors based on qualifications. The cost for the relief inspection will be paid directly by the capital improvement projects and no separate budget allocation is requested at this time. Staff has estimated up to 3,000 hours of time plus miscellaneous charges (travel, reproduction, etc.) for the relief construction inspectors on an as- needed basis. The total cost for a professional services contract with Harris and Associates is not to exceed $300,000. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a professional engineering services agreement with Harris and Associates in the amount of $300,000, to provide relief construction inspection services for the construction of the District's summer 2006 capital improvement projects. N:\PESUP\Cbradley \Position Papers\2006 \June \Hire Cis 2006.doc Page 2 of 2