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Home My WebLink About5/1/2008 AGENDA BACKUPCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 4. d. Consent Calendar Type of Action: ADOPT RESOLUTION subject: ADOPT A RESOLUTION AUTHORIZING EXECUTION OF A QUITCLAIM DEED TO AYALA DELGUSHAN, AND AUTHORIZING STAFF TO RECORD THE QUITCLAIM DEED AND RESOLUTION WITH THE CONTRA COSTA COUNTY RECORDER Submitted By: Initiating Dept. /Div.: Stephanie Gronlund, Associate Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: S. J. moto -Mills C. Swanson A. Farrell Ja s M. Kelly General Manager ISSUE: A resolution of the Board of Directors is required to quitclaim easements and to record the documents. RECOMMENDATION: Adopt a resolution authorizing execution of a quitclaim deed and authorizing staff to record the deed and resolution with the Contra Costa County Recorder. FINANCIAL IMPACTS: None. This is an expungement of an easement for a future public sewer main that was not constructed on this parcel. The property owner has paid all applicable right -of -way fees to process this quitclaim request. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: Ayala Delgushan, owner of the real property located at 136 Las Vegas Road, Orinda, California, has requested the District to quitclaim a sewer easement granted to the District in 1949. Subsequent to recording of the easement grant deed, Local Improvement District No. 23 was formed and the sewer system for this neighborhood was constructed under District Project No. 1573 in 1967. No public sewer facilities were constructed on this parcel. Staff has concluded that no future sewer improvements will be needed within the subject parcel. RECOMMENDED BOARD ACTION: Adopt a resolution authorizing the President of the Board of Directors and the Secretary of the District to execute a quitclaim deed to Ayala Delgushan, and authorizing staff to record the deed and resolution with the Contra Costa County Recorder. N: \ENVRSEC \Position Papers \Gronlund\2008 \PP Quitclaim Delgushan DP X1573 5- 1- 08.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 4.e. Consent Calendar Type of Action: ADOPT RESOLUTION Subject: ADOPT A RESOLUTION AUTHORIZING EXECUTION AND RECORDING OF A QUITCLAIM DEED TO THE SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT (BART) (JOB 1554) Submitted By: Initiating Dept /Div.: Stephanie Gronlund, Associate Engineer Engineering / Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: S. �onlnd J. yamoto -Mills C. Swanson A. Farrell Ja M. Kelly (.c General Manager ISSUE: A resolution of the Board of Directors is required to quitclaim easements and to record the documents. RECOMMENDATION: Adopt a resolution authorizing execution of a quitclaim deed and authorizing staff to record the deed and resolution with the Contra Costa County Recorder. FINANCIAL IMPACTS: None. The project proponent has paid the applicable right -of- way fee to process the quitclaim request. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: The San Francisco Bay Area Rapid Transit District (BART) has requested that a portion of an existing easement (see Attachment 1), be quitclaimed. The sewer easement is no longer necessary since the sewer pipeline is not part of the District's sewer system and the District has no plans to use this easement in the future. RECOMMENDED BOARD ACTION: Adopt a resolution authorizing the President of the Board of Directors and the Secretary of the District to execute a Quitclaim Deed to the San Francisco Bay Area Rapid Transit District (BART) and authorizing staff to record the deed and resolution with the Contra Costa County Recorder. N: \ENVRSEC \Position Papers \Gronlund\2008 \5862 PP BART PH QC 5- 1- 08.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 4.f. Consent Calendar Type of Action: SET HEARING DATE subject: ADOPT A RESOLUTION ESTABLISHING JUNE 5, 2008 AS THE DATE FOR A PUBLIC HEARING TO CONSIDER THE ESTABLISHMENT OF MONTEIRA ALHAMBRA VALLEY ASSESSMENT DISTRICT NO. 2007 -4 Submitted By: Initiating Dept. /Div.: Russell B. Leavitt, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: 14L- R. Leavitt N6 b s��/l 7 C. Swanson A. Farrell K. Im Jan-As M. Kelly General Manager ISSUE: A public hearing is required to establish the Monteira Alhambra Valley Assessment District (AVAD) No. 2007 -4. A public hearing is also required to create an assessment district pursuant to the procedure adopted under Proposition 218, which amended the California Constitution, Article XIII D, Section 4. RECOMMENDATION: Adopt a resolution establishing June 5, 2008 as the date for a public hearing regarding Monteira AVAD No. 2007 -4 pursuant to California Constitution, Article XIII D, Section 4, and Streets and Highways Code, Sections 5898.20 and 5898.24. FINANCIAL IMPACTS: There are minor costs for publishing a legal notice advertising the public hearing and for staff preparation and attendance. These costs will eventually be paid by the AVAD participants. Subsequent approval of the Monteira AVAD would commit the District to fund up to $86,095 in sewer improvements. ALTERNATIVES /CONSIDERATIONS: Select a later date for the public meeting - This would delay the AVAD proceedings. since the holding of a public hearing is required by law. 2. No action by the Board - No action would stop the AVAD proceedings until a different public hearing date is set since the holding of a public hearing is required by law. BACKGROUND: On December 20, 2007, the Board of Directors adopted a resolution of intention to create Monteira AVAD No. 2007 -4 for the purpose of installing sewer improvements on Monteira Lane in unincorporated Martinez. The proposed Monteira AVAD No. 2007 -4 complies with the AVAD policy approved at the November 2, 2006 Board of Directors meeting. Eight properties could be served by a Monteira Lane public sewer. As required by Proposition 218, an Engineer's Report estimating assessments N: \ENVRSEC \Position Papers \Leavitt\2008 \PP Set Pub Hearing Monteira AVAD 2207 -4 5- 1- 08.doc Page 1 of 2 POSITION PAPER Board Meeting Date: May 1, 2008 subject: ADOPT A RESOLUTION ESTABLISHING JUNE 5, 2008 AS THE DATE FOR A PUBLIC HEARING TO CONSIDER THE ESTABLISHMENT OF MONTEIRA ALHAMBRA VALLEY ASSESSMENT DISTRICT NO. 2007 -4 for properties within the AVAD has been prepared and distributed. District staff will provide the Engineer's Report to Board members upon request. It is now appropriate to schedule a public hearing to offer interested parties the opportunity to comment on the proposed assessments and related issues. A resolution has been prepared (Attachment 1), which, if adopted, will set the date of the public hearing for June 5, 2008. RECOMMENDED BOARD ACTION: Adopt a resolution establishing June 5, 2008 as the date for a public hearing to consider the establishment of Monteira Alhambra Valley (AVAD) No. 2007 -4 pursuant to California Constitution, Article XIII D, Section 4, and Streets and Highways Code, Sections 5898.20 and 5898.24. N: \ENVRSEC \Position Papers \Leavitt\2008 \PP Set Pub Hearing Monteira AVAD 2207 -4 5- 1- 08.doc Page 2 of 2 ATTACHMENT 1 RESOLUTION NO. 2008- RESOLUTION SETTING HEARING OF PROTESTS ON MONTEIRA ALHAMBRA VALLEY ASSESSMENT DISTRICT (AVAD NO. 2007 -4) WHEREAS, on December 20, 2007, this Board of Directors adopted Resolution 2007 -195 expressing the intent of the District to proceed with the Monteira Alhambra Valley Assessment District (AVAD) No. 2007 -4 for the purpose of installing sewer improvements on Reliez Valley Road in unincorporated Martinez, CA; and WHEREAS, at the direction of this Board of Directors, Curtis W. Swanson, Environmental Services Division Manager, as Engineer of Work for improvement proceedings for Monteira AVAD No. 2007 -4, Central Contra Costa Sanitary District, Contra Costa County, California, has prepared a report described in Section 5898.22 of the Streets and Highways Code (Municipal Improvement Act of 1911); and WHEREAS owners of each affected parcel will be provided written notice of the proposed assessment and ballot to indicate approval or opposition of the assessment pursuant to the procedures required by California Constitution Article XIII D, Section 4, as amended by Proposition 218; NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District resolves: 1. This Board sets 2 PM on June 5, 2008 at the Meeting Room of the Board of Directors, 5019 Imhoff Place, Martinez, California, as the time and place for hearing protests to the proposed improvements and the creation of the proposed Alhambra Valley Assessment District and assessment. NAENVRSEC \Position Papers \Leavitt\2008 \Res Monteira AVAD 2007 -4 5- 1- 08.doc 2. The Secretary of the District is directed to publish the notice of improvement required by the Municipal Improvement Act of 1911. PASSED AND ADOPTED this 1St day of May 2008, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: NOES: Members: ABSENT: Members: Gerald R. Lucey President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme Secretary, Central Contra Costa Sanitary District County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Alm District Counsel NAENVRSEMPosition Papers \Leavitt\2008 \Res Monteira AVAD 2007 -4 5- 1- 08.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 4.g. Consent Calendar Type of Action: SET PUBLIC HEARING DATE subject: SET PUBLIC HEARINGS ON JUNE 5, 2008, TO RECEIVE PUBLIC COMMENT ON THE FISCAL YEAR 2008 -2009 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND BUDGET AND THE SELF - INSURANCE FUND BUDGET AND FOR THE ESTABLISHMENT OF THE FISCAL YEAR 2008 -2009 SEWER SERVICE CHARGE RATES, AND ON THE COLLECTION OF CURRENT SEWER SERVICE CHARGES AND PRIOR YEAR DELINQUENT CHARGES BY PLACING THEM ON THE COUNTY TAX ROLL Submitted By: Debbie Ratcliff, Controller Initiating Dept /Div.: Administrative /Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Ratcli R. Mu s e$ M. Kel j General Manager ISSUE: The District Code and State of California law require holding Public Hearings for placing the Fiscal Year 2008 -2009 Sewer Service Charges and prior year delinquent charges on the County tax roll for collection. A public hearing is also being scheduled to receive comment on the amount of Sewer Service Charge to be imposed for Fiscal Year 2008 -2009 and to receive public comment on the Fiscal Year 2008 -2009 Operations and Maintenance, Debt Service and Self- Insurance Fund Budgets. RECOMMENDATION: Authorize a public notice to set public hearings on June 5, 2008, to receive public comment on the Sewer Service Charge rates to be imposed for Fiscal Year 2008 -2009, the collection of Sewer Service Charges and prior year delinquent charges on the County tax roll, and the Fiscal Year 2008 -2009 Operations and Maintenance, Debt Service and Self- Insurance Fund Budgets. FINANCIAL IMPACTS: At the June 5, 2008, Public Hearing, the Board will be asked to consider a Sewer Service Charge rate increase of $11 for Fiscal Year 2008 -2009. Total additional revenues for Fiscal Year 2008 -2009 would be approximately $1.8 million if the staff proposed budget rate increase of $11 is implemented. ALTERNATIVES /CONSIDERATIONS: The Board could choose not to increase the Sewer Service Charge for Fiscal Year 2008 -2009 or an alternative amount other than the $11 assumed in the budget, up to $13 which was stated in the Public Notice sent last Fiscal Year. NAADMINSUP\ADMIN \POSPAPER \Set Public Hearing 05- 01- 08.doc POSITION PAPER Board Meeting Date: May 1, 2008 subject. SET PUBLIC HEARINGS ON JUNE 5, 2008, TO RECEIVE PUBLIC COMMENT ON THE FISCAL YEAR 2008 -2009 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND BUDGET AND THE SELF - INSURANCE FUND BUDGET AND FOR THE ESTABLISHMENT OF THE FISCAL YEAR 2008 -2009 SEWER SERVICE CHARGE RATES, AND ON THE COLLECTION OF CURRENT SEWER SERVICE CHARGES AND PRIOR YEAR DELINQUENT CHARGES BY PLACING THEM ON THE COUNTY TAX ROLL In regard to the collection of Sewer Service Charges, the Sewer Service Charge could be collected through direct billings by the District. However, this would require additional labor and benefit costs. The Sewer Service Charge has been collected on the County tax roll since the inception of the service charge in 1976. Staff believes that collection on the tax roll provides the most economical and efficient means for the District to collect these charges. BACKGROUND: At the Board Financial Planning and Policy Workshop in January, staff reviewed the financial prudence of imposing a Sewer Service Charge rate increase of $11 for a total charge of $311 annually to cover inflationary increases in the budget, higher than projected increases in chemicals and utilities, increased spending in the District's Capital Improvement Plan, and to have annual modest rate increases in future years. The Operations and Maintenance Budget, which will be submitted for initial review by the Board of Directors on May 15, 2008, has assumed a Sewer Service Charge increase of $11 for a total charge of $311. Last Fiscal Year, the Board approved a Proposition 218 Notice amount of up to $13 for Fiscal Year 2007 -2008 and Fiscal Year 2008 -2009 to allow for unexpected increases in District expenses. A public hearing is required to receive public comments on collecting Sewer Service Charges and prior year delinquent charges on the County tax roll. A hearing is also being set to receive comment on selecting the Sewer Service Charge rate to be imposed for Fiscal Year 2008 -2009. The Board will review and consider the District's proposed budget on May 15, 2008 to determine whether the Board approved increase for Fiscal Year 2008 -2009 will continue to be necessary. These hearings are typically held during the Board Meeting at which the Operations and Maintenance Budget is presented for approval. Approval of the Fiscal Year 2008 -2009 Operations and Maintenance Budget, Debt Service Fund Budget and Self- Insurance Fund Budget is scheduled for the Board meeting on June 5, 2008. RECOMMENDED BOARD ACTION: Authorize a public notice to set public hearings on June 5, 2008, to receive public comment on the amount of the Sewer Service Charge rates for Fiscal Year 2008 -2009, the collection of Sewer Service Charges and prior year delinquent charges on the County tax roll, and on the Fiscal Year 2008 -2009 Operations and Maintenance Budget, Debt Service Fund Budget and Self- Insurance Fund Budget. NAADMINSMADMINTOSPAPEMSet Public Hearing 05- 01- 08.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 4.h. Consent Calendar Type of Action: SET DATE FOR PUBLIC HEARING subject: SET JUNE 19, 2008 AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON PLACING THE FISCAL YEAR 2008 -09 CAPACITY USE CHARGES, THE FISCAL YEAR 2008 -09 ASSESSMENTS FOR CONTRACTUAL ASSESSMENT DISTRICTS, AND THE FISCAL YEAR 2007 -08 DELINQUENT CHARGES ON THE CONTRA COSTA COUNTY TAX ROLL Submitted By: Kurt Darner Development Services Supervisor Initiating Dept. /Div.: Engineering /Environmental Services REVIEWED AND RECOMMEND D FOR BOARD ACTION: K. Darner C. Swanson A. Farrell K1.4 K. Alm iyknes M. Kelly G neral Manager ISSUE: The District Code and State of California law require holding Public Hearings for placing the Fiscal Year 2008 -09 Capacity Use Charges, the 2008 -09 assessments for Contractual Assessment Districts, and the 2007 -08 delinquent charges on the County tax roll. RECOMMENDATION: Establish June19, 2008 as the date for a public hearing to receive comments on placing the Fiscal Year 2008 -09 Capacity Use Charges, the 2008- 09 assessments for Contractual Assessment Districts, and the 2007 -08 delinquent charges on the County tax roll for collection. FINANCIAL IMPACTS: None from this action. ALTERNATIVES /CONSIDERATIONS: The Board could decline to place Capacity Use Charges, assessments for Contractual Assessment Districts, and delinquent charges on the County tax roll for collection, requiring that these charges be collected directly by the District. Direct billing would incur additional staff time and could result in a lower rate of collection of these charges. BACKGROUND: Commercial tenants and commercial property owners may elect to participate in the District's Capacity Use program for payment of Capacity Fees over a fifteen year period. The District currently has 26 customers paying capacity use charges under capacity use agreements. Capacity Use Charges are placed on the property tax roll for 25 of these and one customer is billed directly. In addition, there is one new customer who recently signed a capacity use agreement in 2008 whose charge will be placed on the property tax roll. N: \ENVRSEC \Position Papers \Darner\2008 \PP Set Hearing Re 08 -09 Cap Use Charges & CAD CIP 5- 1- 08.DOC POSITION PAPER Board Meeting Date: May 1, 2008 subject: SET JUNE 19, 2008 AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON PLACING THE FISCAL YEAR 2008 -09 CAPACITY USE CHARGES, THE FISCAL YEAR 2008 -09 ASSESSMENTS FOR CONTRACTUAL ASSESSMENT DISTRICTS AND THE FISCAL YEAR 2007 -08 DELINQUENT CHARGES ON THE CONTRA COSTA COUNTY TAX ROLL Property owners who have formed Contractual Assessment Districts have agreed to pay for sewer improvements over a ten year period. Payments are to be collected by placing assessments on each property owner's tax bill. There are currently 182 customers within 22 Contractual Assessment Districts whose charges are placed on the property tax roll. The District may elect to use the tax roll for the collection of current or delinquent charges for services and facilities furnished by the District. Two delinquent charges are currently eligible for collection on the property tax roll. They are: 1) 1515 Locust, Walnut Creek, Restaurant & Lounge where a tenant improvement to the restaurant was completed without payment of capacity fees for the additional burden and other charges totaling $3,195.58. 2) 500 Rheem Boulevard, Moraga where a single family residence was connected to the sewer system without payment of connection fees or inspection of the building connection. Project security funds were applied, with the concurrence of the property owner, to the outstanding charges, leaving an unpaid amount of $2,036.78. Staff has made several attempts to collect these delinquent charges. A resolution of the Board is needed to place Capacity Use Program charges, assessments for Contract Assessment Districts, and delinquent charges on the County tax roll. RECOMMENDED BOARD ACTION: Establish June 19, 2008 as the date for a public hearing to receive comments on placing the Fiscal Year 2008 -09 Capacity Use Charges, the 2008 -09 assessments for Contractual Assessment Districts, and 2007 -08 delinquent charges on the Contra Costa County tax roll. N: \ENVRSEC \Position Papers \Darner\2008 \PP Set Hearing Re 08 -09 Cap Use Charges & CAD CIP 5- 1- 08.DOC Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 4.i. Consent Calendar Type of Action: ACCEPT CONTRACT WORK/AUTHORIZE NOTICE OF COMPLETION Subject: ACCEPT THE CONTRACT WORK FOR THE PIPING RENOVATIONS AND REPLACEMENT, PHASE 3, DISTRICT PROJECT 7234, 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: C. Shima tkowiak cki A. Farrell JWfios M. Kelly, General Manager ISSUE: Construction has been completed on the Piping Renovations and Replacement Project, Phase 3, District Project 7234, and the work is now reedy for acceptance. RECOMMENDATION: Accept the contract work for the Piping Renovations and Replacement Project, Phase 3, District Project 7234, 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: During the construction of the secondary treatment facilities in the early 1970s, numerous piping systems were installed throughout the treatment plant. These pipes carry the processed wastewater, sludge, steam, air, and other utility services between the various sections of the plant. These pipes have been in place for over thirty years and are showing signs of deterioration. For example, the fuel oil pipelines had recently developed leaks and required repairs. Other pipelines in service for shorter time periods, such as the hypochlorite piping, have required repairs due to leaks caused by pipe degradation accelerated by exposure to sunlight. Phase 3 of the Piping Renovations and Replacement Project focused on replacing hypochlorite piping throughout the plant, applying protective coatings, and installing facility roofs to increase their service life. In addition, the underground fuel oil pipelines from the fuel storage tanks to the Solids Conditioning Building were replaced with a double containment piping system to meet present code requirements. Other piping, such as the auxiliary boiler blow down piping, was replaced to reduce maintenance that has been required on that piping system. NAPESUP \Position Pape rs\S h ima\7234-Accept-NOC. doc Page 1 of 2 POSITION PAPER Board Meeting Date: May 1, 2008 subject: ACCEPT THE CONTRACT WORK FOR THE PIPING RENOVATIONS AND REPLACEMENT PROJECT, PHASE 3, DISTRICT PROJECT 7234, AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION On June 21, 2007, the Board of Directors authorized the award of a contract for the construction of the project to NCCI, Inc. The Notice to Proceed was issued on July 31, 2007. The work was substantially completed on March 28, 2008. The remaining items of work consist of minor punch -list items, which do not affect the project acceptance. Immediately upon acceptance, the Contractor is relieved of the duty of maintaining and protecting the Contract work. Guaranty and warranty periods required by the Contract and the statutory period for filing of liens and Stop Notices start on the date of acceptance by the Board of Directors. Final payment to the Contractor is made after expiration of the statutory period for filing of liens and Stop Notices, provided no liens or Stop Notices have been filed, and provided the punch -list items have been completed. The total authorized budget for the project is $1,816,000. 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 Piping Renovations and Replacement Project, Phase 3, District Project 7234, and authorize the filing of the Notice of Completion. N:\PESUP \Position Papers \Shima \7234 - Accept- NOC.doc Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 4.i. Consent Calendar Type of Action: AUTHORIZE AGREEMENT subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH HARRIS AND ASSOCIATES AND VALLEY ENGINEERING GROUP TO PROVIDE RELIEF INSPECTORS FOR THE 2008 -09 CONSTRUCTION OF CAPITAL IMPROVEMENT PROJECTS Submitted By: Michael Penny Initiating Dept. /Div.: Provisional Senior Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: M. Penny ilecki (� A. Farrell ar/es M. Kelly, ' "- �n/' General Manager 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 agreements with Harris and Associates and Valley Engineering Group to provide relief inspectors on an as- needed basis for the construction of the District's 2008 -09 Capital Improvement Projects. FINANCIAL IMPACTS: The estimated cost for this task is $600,000: $350,000 for Harris and Associates and $250,000 for Valley Engineering Group. 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 2008 -09 construction season indicates that hiring four to six additional inspectors is necessary (depending on construction timing of projects and extent of weekend and night work). Hiring temporary inspection staff addresses effectively work load peaks and allows design staff to continue with the design of projects for the following construction season. Hiring temporary inspection staff and the use of former District employee Tom Trice was presented to the Board at the April 10th Capital Budget Workshop. N: \PESUP \Cbradley \Position Papers \Penny \Consult Inspector 2008 PP.doc Page 1 of 2 POSITION PAPER Board Meeting Date: May 1, 2008 subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH HARRIS AND ASSOCIATES AND VALLEY ENGINEERING GROUP TO PROVIDE RELIEF INSPECTORS FOR THE 2008 -09 CONSTRUCTION OF CAPITAL IMPROVEMENT PROJECTS On March 6, 2008, Request for Proposals (RFP) were sent to nine professional engineering service and personnel firms, which included: Vali Cooper and Associates Inc., RES Engineers, Inc., BSK Associates, Harris and Associates, CH2M Hill, the Covello Group, Whitley Burchett and Associates, Valley Engineering Group, and Zumwalt Engineering Group. Four firms responded with submittals. Staff selected Harris and Associates and Valley Engineering Group as the best firms for supplying construction inspection services. Staff has negotiated an hourly rate from $105 to $145 with Harris and Associates for specialty treatment plant inspectors and an hourly rate of $40 to $65 with Valley Engineering Group for collection system and painting /carpeting construction inspectors. 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 7,500 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 $350,000. The total cost for a professional services contract with Valley Engineering Group is not to exceed $250,000. RECOMMENDED BOARD ACTION: Staff recommends the following: Authorize the General Manager to execute a professional engineering services agreement with Harris and Associates in the amount of $350,000, to provide relief construction inspection services for the construction of the District's summer 2008 -09 Capital Improvement Projects. 2. Authorize the General Manager to execute a professional engineering services agreement with Valley Engineering Group in the amount of $250,000, to provide relief construction inspection services for the construction of the District's summer 2008 -09 Capital Improvement Projects. NAPESUMbradley \Position Papers \Penny \Consult Inspector 2008 PP.doc Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 4.k. Consent Calendar Type of Action: HUMAN RESOURCES Subject: AUTHORIZE MEDICAL LEAVE OF ABSENCE WITHOUT PAY FOR JOHN CENSOPLANO, NETWORK COORDINATOR Submitted By: Initiating Dept. /Div.: Deborah Ratcliff, Controller Administration /Accounting & Information Technology Division REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Ratcl R� lus es C. Freitas v Ja es M. Kelly, General Manager ISSUE: The Board of Directors' authorization is required for leave without pay in excess of 30 days. RECOMMENDATION: Authorize medical leave of absence without pay for John Censoplano, Network Coordinator, through May 18, 2008. FINANCIAL IMPACTS: Salary of agency temporary for duration of leave. ALTERNATIVES /CONSIDERATIONS: Deny medical leave of absence without pay. BACKGROUND: John Censoplano, Network Coordinator, has been on an approved medical leave for his own serious health condition since February 25, 2008. He is ineligible for Family and Medical Leave as he exhausted the twelve weeks of Family and Medical Leave in 2007. It is anticipated that he will be off work through May 18, 2008. Since this request exceeds the thirty working days that the Department Director and General Manager may approve, Board of Directors' authorization is required. RECOMMENDED BOARD ACTION: Authorize medical leave of absence without pay for John Censoplano, Network Coordinator, through May 18, 2008. N:\ ADMINSUP \ADMIN \POSPAPER\Authorize Medical Leave - John Censoplano 05- 01- 08.doc PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE (UNCODIFIED) TO ESTABLISH REIMBURSEMENT FEES FOR THE ALHAMBRA VALLEY TRUNK SEWER PROJECT DISTRICT PROJECT NO. 5919 SUGGESTED AGENDA May 1, 2008 I. Request staff presentation. II. Public Hearing: A. Receive public comments. B. Request staff response, as appropriate. C. Close Public Hearing. III. Board deliberation regarding proposed ordinance to establish a reimbursement fee for the Alhambra Valley Trunk Sewer Project, District Project No. 5919. WENVRSEC \Position Papers \Swanson\2008 \5919 Agenda Hearing Reimb Fees Alhambra Valley 5- 1- 08.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 5.a. Hearings Type of"Action: CONDUCT HEARING; ADOPT ORDINANCE subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS AND CONSIDER ADOPTION OF A PROPOSED ORDINANCE (UNCODIFIED) TO ESTABLISH REIMBURSEMENT FEES APPLICABLE TO PROPERTIES WHICH COULD CONNECT TO THE ALHAMBRA VALLEY TRUNK SEWER, DISTRICT PROJECT 5919 Submitted By: Initiating Dept. /Div.: Curtis Swanson, Division Manager Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: /� QA - C. Swanson A. Farrell K. Alm La e i es M. Ke ly General Manager ISSUE: The Alhambra Valley Assessment District Policy calls for the Board to establish direct and indirect connector reimbursement fees after completion of the Alhambra Valley Trunk Sewer Project. The District Code requires a public hearing be held prior to the Board of Directors' adoption of the proposed Alhambra Valley Reimbursement Fees. RECOMMENDATION: Conduct a public hearing to receive comments, overrule protests, and adopt the proposed Ordinance (uncodified) to establish reimbursement fees applicable to properties that could connect to the Alhambra Valley Trunk Sewer, District Project 5919. FINANCIAL IMPACTS: The District has expended approximately $4,000,000 to install the Alhambra Valley Trunk Sewer. Establishment and collection of the proposed fees would reimburse the District for these project costs. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: The District has completed the construction of the Alhambra Valley Trunk Sewer Project. The project, constructed in two phases, consisted of approximately 7000 feet of 10 and 12 -inch sewer, a dual 8 and 10 -inch inverted siphon crossing of Alhambra Creek, manholes, sewer laterals, and other appurtenances. The District undertook construction of a trunk sewer in the Alhambra Valley to serve as the backbone of an area -wide public sewer network. Because of the high cost of extending sewers to the valley, the District approved the Alhambra Valley Assessment District Policy on November 2, 2006 to assist property owners in financing sewer extensions and connections. The policy calls for the District to establish direct and indirect connector reimbursement fees. Direct connectors are those properties that can connect directly to the trunk sewer. Indirect connectors are those properties that must extend a public sewer main from the trunk sewer to be able to receive sewer service. N: \ENVRSEC \Position Papers \Swanson\2008 \5919 PP Conduct Hearing Fees Alhambra Valley 5- 1- 08.doc Page 1 of 3 POSITION PAPER Board Meeting Date: May 1, 2008 Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS AND CONSIDER ADOPTION OF A PROPOSED ORDINANCE (UNCODIFIED) TO ESTABLISH REIMBURSEMENT FEES APPLICABLE TO PROPERTIES WHICH COULD CONNECT TO THE ALHAMBRA VALLEY TRUNK SEWER, DISTRICT PROJECT 5919 The proposed Alhambra Valley Direct and Indirect Connector Reimbursement Fees are $20,525 and $7303 per RUE respectively. The proposed fees would be collected from property owners when they connect to the sewer system. The collected fees would reimburse the District for costs associated with planning, design, and construction of the Alhambra Valley Trunk Sewer Project. The proposed fees will be collected until the District has recovered the entire trunk sewer project costs. Calculations of the proposed reimbursement fees are summarized in Exhibits B -1 through B -3 (attached). The fees would be charged in addition to Capacity Fees and other District charges, such as those for permits, inspection, and sewer service. Staff has drafted a proposed Ordinance (attached) to establish reimbursement fees for properties that connect to the Alhambra Valley Trunk Sewer. Exhibit A of the proposed Ordinance shows the locations of the project and the properties that could connect directly or indirectly to the trunk sewers. The proposed Ordinance also overrules protests or objections to the proposed reimbursement fees. The District Code, Chapter 6.20.400, requires that reimbursement fees be adjusted at least annually to account for the lost investment opportunity cost. 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. Since the proposed reimbursement fees are proposed to be levied on properties, notice of the proposed fees was provided to all owners of affected parcels pursuant to Article XIIID, Section 4 of the California Constitution, as amended by Proposition 218. The District mailed a notice of public hearing to owners of properties to which the fee could be applicable on March 14, 2008, more than forty -five (45) days before the May 1, 2008 public hearing. The District conducted a public meeting in the evening of April 9, 2008, to present and answer questions about the proposed reimbursement fees. Approximately 60 property owners attended this meeting. On April 17, 2008, the District mailed a second notice of the May 1, 2008 public hearing along with additional information about the calculation of the proposed reimbursement fees. N: \ENVRSEC \Position Papers \Swanson\2008 \5919 PP Conduct Hearing Fees Alhambra Valley 5- 1- 08.doc Page 2 of 3 POSITION PAPER Board Meeting Date: May 1, 2008 subject CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS AND CONSIDER ADOPTION OF A PROPOSED ORDINANCE (UNCODIFIED) TO ESTABLISH REIMBURSEMENT FEES APPLICABLE TO PROPERTIES WHICH COULD CONNECT TO THE ALHAMBRA VALLEY TRUNK SEWER, DISTRICT PROJECT 5919 RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comments, overrule protests, and adopt the proposed Ordinance (uncodified) to establish reimbursement fees applicable to properties that could connect to the Alhambra Valley Trunk Sewer, District Project 5919. N: \ENVRSEC \Position Papers \Swanson\2008 \5919 PP Conduct Hearing Fees Alhambra Valley 5- 1- 08.doc Page 3 of 3 ORDINANCE NO. (UNCODIFIED) AN ORDINANCE (UNCODIFIED) TO ESTABLISH REIMBURSEMENT FEES APPLICABLE TO PROPERTIES THAT DIRECTLY OR INDIRECTLY CONNECT TO THE ALHAMBRA VALLEY TRUNK SEWER, DISTRICT PROJECT 5919 WHEREAS, the Central Contra Costa Sanitary District (District) Code Chapter 6.20.400 provides for reimbursement to the District from fees charged property owners when they apply to connect their property to the public sewer system; and WHEREAS, District Code Chapter 6.20.400 provides for the establishment of reimbursement accounts for sewer facilities installed by the District; and WHEREAS, the Alhambra Valley Trunk Sewer, District Project 5919, the location of which is shown in Exhibit A of this ordinance, incorporated in full herein by this reference, is a District - installed sewer facility as defined in District Code Chapter 6.20.400; and WHEREAS, reimbursement fees have been calculated by the method specified in District Code Chapter 6.20.400, which calculations are summarized in Exhibit B of this Ordinance, incorporated in full herein by this reference; and WHEREAS, on March 14, 2008, owners of each affected parcel were provided written notice of the proposed reimbursement fees and public hearing as required by the District Code and pursuant to the procedures required by California Constitution Article XIIID, Section 4, as amended by Proposition 218; and WHEREAS, the District conducted a public meeting for affected property owners on April 9, 2008 to present information and answer questions about the proposed reimbursement fees; and WHEREAS, on April 17, 2008, a second notice of the public hearing along with additional information about the proposed reimbursement fees, including Exhibits A and B of this Ordinance, was mailed to owner of affected parcels; and WHEREAS, a properly noticed public hearing to receive comments, protests or objections on the proposed reimbursement fees was conducted at the District Board of Directors' regularly scheduled meeting on May 1, 2008, N: \ENVRSEC \Position Papers \Swanson\2008 \Ordinance and Exhibits for 5919 Hearing 5- 1- 08.doc NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does ordain as follows: Section 1 The reimbursement fees applicable to properties that connect to the Alhambra Valley Trunk Sewer, District Project 5919 designated in Exhibit A are hereby established. Said reimbursement fees have been calculated in the manner required by District Code Chapter 6.20.400, as set forth in Exhibit B of this ordinance. 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 6.20.400 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 fees are in effect. Section 4 Pursuant to Article XIIID of the California Constitution, as amended by Proposition 218, notice of the proposed reimbursement fees was provided to all owners of parcels to which the reimbursement fees could be applicable. Section 5 The Board set 2:00 PM on May 1, 2008 at the Meeting Room of the Board of Directors, 5019 Imhoff Place, Martinez, California as the time and place for a public hearing pursuant to the California Constitution, Article XIIID, Section 4. at the time and place for which notice was given, the Board of Directors conducted a public hearing pursuant to the California Constitution, Article XIIID, Section 4, and gave every person present an opportunity to comment on, protest or object to the amount of the proposed reimbursement fees. The Board finds that the protests against the proposed fees (including all written protests not withdrawn before the conclusion of the hearing) is made by the owners of less than one -half of the area of the land to which the fees would be applicable. The Board hereby overrules each of these protests, written or oral. N: \ENVRSEC \Position Papers \Swanson\2008 \Ordinance and Exhibits for 5919 Hearing 5- 1- 08.doc Section 6 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 1St day of May 2008, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Gerald R. Lucey President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Alm Counsel for the District NAENVRSEC \Position Papers \Swanson\2008 \Ordinance and Exhibits for 5919 Hearing 5- 1- 08.doc .• m Q a o` 0 P P� Q ❑ m c� •� z w �O bs ° W Q a S w 6 0 Cn LL Zw JP�Y� sib o I w I U) N J Z) ? J m ~ I Q� �w Q Q m a+ 0 � � y A377VA • vuswvH"IV v •'` • . 81yd�, ? •,.•., •,........ _ •ter• �•�•► : V r•M •1• O d � • • _L %. —_ ••'••..•...••...r.•••••CT •• .•••' .7 LL •• �' s'°► Ic do w� H3 v O� M31A 3NOJLS m A d0 w J W W uj LLI Go uL J W LL LL CC W W i Ld t1 W C W us 0a v J Z Z m m F- %, Z H C 02 OFW W oC Z U HQ H¢ .j W z o wzo H X31 J y 2 HQ ~ QQ Z W y V W QQ QQ p2 VN �Z uQiZ W F- ao Vt�/1 Q0 0 ZW Q Q 4 Z , ' J 1 u6p•;91Q o \u \JaMaS \s oW 39M1 \any3jo \:)Itzt u fg9£9 a\u p \ja.taS \s oVj 39N1 \aAl43Jo \:Ht9 u6P•SSIQ o \u \Jat•aS \s uPl 39Y1 \9ny3Jo \Mat u Dt9£Q u \u p \j9mQS \s oYl 39Y1 \anx43jo \,HtS u P•LI]]u \JDJ \Pas \:Ntot iL9£Q u \u p\JaMaS \s oYl 39W \aAx43m \:Ntb <C t u6p• ow- ]m�-woyp\ u ow \s DWI9 is acid lZ �j !PIAW :A8 a£:9l SOOZ-8Cr4-£Z 'a400 lald a [£9 -0] ` °o s anal Exhibit B Estimated Project Costs Alhambra Valley Trunk Sewer Project District Project No. 5919 Project Cost Category Project Planning Design, Permits & Right -of -Way Construction Management National Park Service Bond Construction Project Completion Allowance Total Trunk Sewer Project Cost Minus Developer Contribution Minus NPS Bond Net Trunk Sewer Project Cost Estimated Cost N: \ENVRSEC \Position Papers \Swanson\2008 \Ordinance and Exhibits for 5919 Hearing 5- 1- 08.doc $105,006 659,601 603,755 100,000 213967670 159,968 $4,025,000 (400,000) (1007 000 ) $3,525,000 Exhibit B -1 Reimbursement Fee Calculation For Direct Connections to the Alhambra Valley Trunk Sewer Project No. 5919 Direct Connection Reimbursable Costs: Construction $1,074,255 Construction Management 109,790 Engineering & Right -of -Way 102,900 Planning 18,700 Project Close -out Allowance 28,490 Total $1,334,135 Number of Potential Direct Connections to Trunk Sewer Facility: 65 Residential Unit Equivalents (RUE) Standard Facility Reimbursement per RUE: $1,334,135 / 65 RUE = $20,525 per RUE Properties to which Special Facility Reimbursement Fee may apply: See attached map entitled Alhambra Valley Trunk Sewer Tributary Area — Reimbursement Fee Areas (Exhibit A). Direct Connections are those marked in pink. NAENVRSEC \Position Papers \Swanson\2008 \Ordinance and Exhibits for 5919 Hearing 5- 1- 08.doc Exhibit B -2 Reimbursement Fee Calculation For Indirect Connections to the Alhambra Valley Trunk Sewer Project No. 5919 Indirect Connection Reimbursable Costs: Construction $1,009,600 Construction Management 498,700 Engineering & Right -of -Way 464,775 Planning 86,310 Project Close -out Allowance 131,480 Total $2,190,865 Number of Potential Indirect Connections to Trunk Sewer Facility: 300 Residential Unit Equivalents (RUE) Indirect Connection Reimbursement per RUE: $2,190,865 / 300 RUE = $7,303 per RUE Properties to which Indirect Connection Reimbursement Fee may apply: See attached map entitled Alhambra Valley Trunk Sewer Tributary Area — Reimbursement Fee Areas (Exhibit A). Indirect Connections are those marked in green. NAENVRSEC \Position Papers \Swanson\2008 \Ordinance and Exhibits for 5919 Hearing 5- 1- 08.doc CENTRAL CONTRA COSTA SANITARY DISTRICT PUBLIC HEARING TO RECEIVE COMMENTS ON APPROVAL OF THE GORDON /MILLTHWAIT ALHAMBRA VALLEY ASSESSMENT DISTRICT NO. 2007 -2 (AVAD NO. 2007 -2), DISTRICT PROJECT 6142 SUGGESTED AGENDA MAY 1, 2008 Request staff report II. Public hearing on Gordon /Millthwait Alhambra Valley Assessment District No. 20070 -2 (AVAD 2007 -2) A. Open public hearing B. Receive public comment C, Request staff response, as appropriate D. Close public hearing III. Board deliberation of the following actions regarding approval o the Gordon /Millthwait Alhambra Valley Assessment District No. 2007 -2: a) Find that the project is exempt from CEQA. b) Adopt a resolution overruling protests. c) Adopt a resolution confirming compliance with California Constitution, Article XIIID, Section 4 d) Adopt a resolution approving the Engineer's Report, assessments, and ordering improvement e) Authorizing the General Manager to execute an agreement with the Gordon /Millthwait area owners. NAENVRSEMPosition Papers \Swanson\2008Wgenda for Public Hearing Gordon Millthwait 5- 1- 08.doc SC,1 Central Contra Costa Sanitary District May 1, 2008 TO: HONORABLE MEMBERS OF THE BOARD VIA: JAMES M. KELLY, GENERAL MANAGER j A � 1n FROM: CURTIS W. SWANSON, DIVISION MANAGER (lln,6 SUBJECT: ATTENDANCE OF MATT PARKINEN OF 26 WANDA WAY AT TODAY'S BOARD MEETING Mr. Matt Parkinen of 26 Wanda Way in the Alhambra Valley plans on speaking at the public hearing on Alhambra Valley reimbursement fees today. Staff expects that Mr. Parkinen will complain about the District's restoration of the privately owned section of Wanda Way. He believes that the new pavement installed at the completion of the trunk sewer project does not meet the terms of the easement agreements that the District signed with he and other owners along Wanda Way in that there are small areas that do not have a minimum of 3 inches thickness of asphalt. The actual thickness of the new pavement as installed varies from 6 inches to 2.25 inches. The District has a contract with Marques Construction, the Alhambra Valley Phase 2 contractor, to grind the old pavement along the privately owned section of Wanda Way and install a new pavement section. Our plans and specifications call for this new pavement section to be a minimum of 3 inches. Marques Construction contends that the new pavement was installed in accordance with the standards of the industry, is structurally sufficient to handle residential traffic loads, and meets the intent of the District plans and specifications. Marques Construction and their pavement subcontractor do not plan to perform any additional work on the new pavement. Staff is evaluating whether the 3 -inch pavement thickness requirement is enforceable, and whether the pavement as installed by Marques Construction is structurally capable of handling the expected traffic loads. The District has retained a pavement consultant, CHEC Consultants of Redding, to investigate the new pavement installed by Marques Construction, and advise the District about this issue. On April 24, 2008, CHEC inspected the new pavement and performed testing of the pavement to determine structural strength. Their report is expected in a few weeks. Item no. 5.a. Alhambra Valley Trunk Sewer Reimbursement Fees Curtis Swanson May 1, 2008 Trunk Sewer Project Costs Cost Item Estimated Cost Planning $ 105,006 Design & Right of Way $ 659,601 Construction Management $ 603,755 National Park Service Deposit $ 100,000 Construction $ 2,396,670 Project Completion Allowance $ 159,968 Subtotal $ 4,025,000 Minus Developer Contribution $ (400,000) Minus NPS Deposit $ (100,000) Total $ 3,525,000 Indirect Reimbursement Fees • Connection to sewer system requires a public sewer main extension. • Indirect Connector Share - $2,190,865 • 300 potential properties. • Fee is $7,303 per RUE Direct Reimbursement Fees . For properties that can connect directly to the trunk sewer. Direct Connector Share - $1,3341,135 • 65 potential properties • Fee is $20,525 per RUE 2 Trunk Sewer Cost Recovery CONNECTION NUMBER AMOUNT TOTAL DIRECT 65 $20,525 $1,334,125 INDIRECT 300 $7,303 $2,190,090 DEVELOPER 1 $ 400,000 NPS DEPOSIT 1 $ 100,000 TOTAL $4,025,025 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 5.b. Hearings Type of Action: CONDUCT PUBLIC HEARING subject: CONDUCT A PUBLIC HEARING: ADOPT A RESOLUTION OVERRULING PROTESTS; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT; AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE GORDON /MILLTHWAIT ALHAMBRA VALLEY ASSESSMENT DISTRICT NO. 2007 -2, DISTRICT PROJECT NO. 6142 Submitted By: Initiating Dept✓Div.: Curtis Swanson, Division Manager Engineering /Environmental Services REV AND RECOMMENDED FOR BOARD ACTION: 7 7 C. Swanson VA. Farrell K. Alm � ' (-- r- - Jafnes M. K Ily General Manager ISSUE: A public hearing must be conducted to consider objections and inquiries regarding the proposed assessment, the Resolution of Intention, the Engineer's Report, annexation, and any other comments regarding Gordon /Millthwait Alhambra Valley Assessment District No. 2007 -2 (AVAD No. 2007 -2). RECOMMENDATION: Conduct the public hearing, find that the project is exempt from the California Environmental Quality Act (CEQA), and approve Gordon /Millthwait AVAD 2007 -2, District Project No. 6142. FINANCIAL IMPACTS: The estimated total project cost is $550,904. The District has authorized up to $3 million for AVADs over the next three years. This would be the first AVAD project authorized by the Board. ALTERNATIVES /CONSIDERATIONS: 1. Continue the public hearing to receive additional public comment or allow additional deliberation. 2. Withhold or delay approval of the project. BACKGROUND: A group of parcel owners in the Gordon Way /Millthwait Drive neighborhood of Alhambra Valley in unincorporated Martinez have requested that the District form a contractual assessment district for the purpose of financing and constructing a public sewer system that will benefit their properties. The Gordon /Millthwait AVAD meets all of the criteria for formation of a contractual N: \ENVRSEC \Position Papers \Swanson\2008 \PP Conduct Hearing Gordon Millthwait AVAD 2007 -02 5- 1- 08.doc Page 1 of 10 POSITION PAPER Board Meeting Date: May 1, 2008 subject CONDUCT A PUBLIC HEARING: ADOPT A RESOLUTION OVERRULING PROTESTS; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT; AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE GORDON /MILLTHWAIT ALHAMBRA VALLEY ASSESSMENT DISTRICT NO. 2007 -2, DISTRICT PROJECT NO. 6142 assessment district. There are 45 properties that could benefit from this AVAD project. The Board of Directors adopted a Resolution of Intention to form a contractual assessment district on December 6, 2007. The proposed sewer includes approximately 3,300 linear feet of 8 -inch sewer main and appurtenant works and facilities that will serve the proponents' 45 existing properties, most of which have existing homes presently relying on septic tanks. A map showing the proposed boundary and the proposed sewer location is presented as Attachment A. On December 6, 2007, the Board of Directors adopted a resolution directing the preparation of a report for an Alhambra Valley Assessment District known as Gordon /Millthwait AVAD No. 2007 -2. A report has been prepared, and assessments have been estimated. (The Engineer's Report is being provided to the Board under separate cover.) On April 3, 2008, the Board of Directors set a public hearing for May 1, 2008. Since assessments are proposed to be levied on properties, the procedural requirements of Proposition 218 do apply. Compliance with these requirements has been included in the documents and actions proposed for Board consideration. In order to continue the process for Gordon /Millthwait AVAD No. 2007 -2, the following actions are necessary: 1. Conduct a public hearing to: a. Announce the tabulation of ballots submitted by owners of each affected parcel indicating approval or opposition to the proposed assessment; and b. Consider public testimony on the Resolution of Intention and the Engineer's Report. 2. If, at the close of the hearing, the Board finds that protests and ballot opposition are insufficient, the following resolutions may be considered and adopted: a. Resolution overruling protests of improvement. b. Resolution confirming compliance with California Constitution, Article XIIID, Section 4. c. Resolution approving the Engineer's Report, assessments, and ordering improvement. N: \ENVRSEC \Position Papers \Swanson\2008 \PP Conduct Hearing Gordon Millthwait AVAD 2007 -02 5- 1- 08.doc Page 2 of 10 POSITION PAPER Board Meeting Date: May 1, 2008 subject: CONDUCT A PUBLIC HEARING: ADOPT A RESOLUTION OVERRULING PROTESTS; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT; AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE GORDON /MILLTHWAIT ALHAMBRA VALLEY ASSESSMENT DISTRICT NO. 2007 -2, DISTRICT PROJECT NO. 6142 An agreement between the owners and the District is needed to establish the rights and obligations of both parties. District Counsel has prepared such an agreement in which the owners agree to: • assessments being placed on their property bills; • pay the assessments; • accept total responsibility for the design and construction of the sanitary sewer extension; • require the contractor who is selected by the owners to maintain certain insurance coverage; • accept total responsibility for the costs associated with the sanitary sewer extension, including interest for District financing; and • have the sanitary sewer extension constructed in accordance with District standards. The District will: • finance the costs of the sanitary sewer extension; • accept the work of the contractor, provided the work is done in accordance with District standards; • give owners an opportunity to pay off some or all of their assessments up front and amortize any remaining assessments on owners' tax bills; • record as liens on the participants' properties the obligation of each participant to pay assessments; and • be reimbursed in full by receiving payments, including interest, for the total amount financed from owners over a fifteen -year period. The estimated cost of the Gordon /Millthwait AVAD No. 2007 -2 is $550,904. A summary of project costs is shown in Exhibit B. Funding for the AVAD Program is included in the 2007 -2008 Capital Improvement Budget (CIB). The District has authorized up to $3 million for AVAD projects over the next three years. This would be the first AVAD project authorized by the Board. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 15061 (b)(3), since it can be seen with certainty that there is no possibility that the activity in question may have a NAENVRSEC\Position Papers \Swanson\2008 \PP Conduct Hearing Gordon Millthwait AVAD 2007 -02 5- 1- 08.doc Page 3 of 10 POSITION PAPER Board Meeting Date: May 1, 2008 subject: CONDUCT A PUBLIC HEARING: ADOPT A RESOLUTION OVERRULING PROTESTS; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT; AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE GORDON /MILLTHWAIT ALHAMBRA VALLEY ASSESSMENT DISTRICT NO. 2007 -2, DISTRICT PROJECT NO. 6142 significant adverse affect on the environment. This certainty is based on the District's past experience with numerous similar sewer construction projects, the developed nature of the project environment, and the limited service area of the project (no potential for growth inducement). Approval of the Engineer's Report will establish the Board of Director's independent finding that this project is exempt from CEQA. RECOMMENDED BOARD ACTION: If a majority protest is not filed and if less than a majority of returned ballots from affected parcel owners oppose the assessment, staff recommends that the Board of Directors take the following actions: • Conduct a public hearing. • Find that the project is exempt from CEQA. • Adopt a resolution overruling protests. • Adopt a resolution confirming compliance with California Constitution, Article XIIID, Section 4. • Adopt a resolution approving the Engineer's Report, assessments, and ordering improvement. • Authorize the General Manager to execute an agreement with the Gordon /Millthwait area owners. N:\ENVRSEC \Position Papers \Swanson\2008 \PP Conduct Hearing Gordon Millthwait AVAD 2007 -02 5- 1- 08.doc Page 4 of 10 AL LOCATION MAP N.T.S. w N 0 200 400 FEET LEGEND: POTENTIAL AVAD AREA AVAD SEWER dF POSSIBLE AVAD PARTICIPANTS Central Contra Costa M Sanitary District Exhibit PROPOSED BOUNDARY OF , 646 1 GORDON /MILLTHWAIT AVAD NO. 2007-2 N:\ENVRSEC\Position Papers\Swanson\2008\PP Conduct Hearing Gordon Milithwait AVAD 2007-02 5-1-08.doc Page 5 of 10 EXHIBIT B SUMMARY OF PROJECT COSTS GORDON /MILLTHWAIT AVAD NO. 2007-2 Construction $476,028 Engineering 34,100 District Services 40,776 TOTAL 5 4 N: \ENVRSEC \Position Papers \Swanson\2008 \PP Conduct Hearing Gordon Millthwait AVAD 2007 -02 5- 1- 08.doc Page 6 of 10 RESOLUTION NO. 2008- RESOLUTION OVERRULING PROTESTS GORDON /MILLTHWAIT ALHAMBRA VALLEY ASSESSMENT DISTRICT NO. 2007 -2 The Board of Directors of the Central Contra Costa Sanitary District resolves: On May 1, 2008, the Board of Directors held a public hearing on the Resolution of Intention and the Engineer's Report on the proposed improvement in Gordon /Millthwait Alhambra Valley Assessment District No. 2007 -2. At or before the time set for hearing, certain interested persons made or may have made protests or objections to the proposed improvement, the extent of the Contractual Assessment District, or the proposed assessment. The Board hereby overrules each of these protests, written or oral. The Board finds that the protest against the proposed improvement (including all written protests not withdrawn in writing before the conclusion of the protest hearing) is made by the owners of less than one half of the area of the land to be assessed for the improvement. PASSED AND ADOPTED this 1St day of May 2008, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: NOES: Members: ABSENT: Members: Gerald R. Lucey President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, Secretary Central Contra Costa Sanitary District County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Alm, District Counsel N: \ENVRSEC \Position Papers \Swanson\2008 \PP Conduct Hearing Gordon Millthwait AVAD 2007 -02 5- 1- 08.doc Page 7 of 10 RESOLUTION NO. 2008- RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4 GORDON /MILLTHWAIT ALHAMBRA VALLEY ASSESSMENT DISTRICT NO. 2007 -2 The Board of Directors of the Central Contra Costa Sanitary District resolves: 1. The Board set 2 PM on May 1, 2008, at the Meeting Room of the Board of Directors, 5019 Imhoff Place, Martinez, California, as the time and place for a public hearing pursuant to California Constitution, Article XIIID, Section 4. 2. Pursuant to Article XIIID of the California Constitution, as amended by Proposition 218, commonly known as the "Right to Vote on Taxes Act," notice of the proposed assessment was provided to all owners of affected parcels within the District, which notice contained a ballot whereby each owner could indicate support or opposition to the proposed assessment. 3. At the time and place for which notice was given, the Board of Directors conducted a public hearing, pursuant to California Constitution, Article XIIID, Section 4, and gave every person present an opportunity to comment on and object to the amount of the proposed assessment. 4. The Board finds that less than a majority of parcel owners who returned ballots, weighted by financial obligation, opposed the proposed assessment. PASSED AND ADOPTED this 1St day of May 2008, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: NOES: Members: ABSENT: Members: Gerald R. Lucey President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, Secretary Central Contra Costa Sanitary District County of Contra Costa, State of California APPROVED AS TO FORM: Kenton L. Alm, District Counsel N: \ENVRSEC \Position Papers \Swanson\2008 \PP Conduct Hearing Gordon Millthwait AVAD 2007 -02 5- 1- 08.doc Page 8 of 10 RESOLUTION NO. 2008- RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT GORDON /MILLTHWAIT ALHAMBRA VALLEY ASSESSMENT DISTRICT NO. 2007 -2 The Board of Directors of the Central Contra Costa Sanitary District resolves: This Board has taken a series of actions preliminary to ordering the improvement in the Gordon /Millthwait Alhambra Valley Assessment District No. 2007 -2, Central Contra Costa Sanitary District, Contra Costa County, California, and now makes the following findings and orders: 1. The Board adopted a map showing the boundaries of the land benefited by the proposed improvement. A copy of the boundary map was filed in the office of the County Recorder of the County of Contra Costa in the Book of Maps of Assessment and Community Facilities Districts. 2. The Board adopted its Resolution of Intention to order the improvement described therein under the Municipal Improvement Act of 1911, and directed Curtis W. Swanson, Environmental Services Division Manager, as the Engineer of Work for the Assessment District, to prepare the report required by Section 5989.22 of the Streets and Highways Code. The improvement is generally described as follows: Construction and installation of approximately 2,930 linear feet of sanitary sewer line, together with appurtenant work and facilities located at Alhambra Valley Road, Gordon Way, Millican Court, and Millthwait Drive in unincorporated Martinez, California. 3. The Board called a hearing of protests on the Gordon /Millthwait Alhambra Valley Assessment District No. 2007 -2. Notice of the hearing was given by publication and by mailing to affected parcel owners, all according to the Municipal Improvement Act of 1911. Affidavits of publication and mailing were filed with the Secretary of the District. 4. At the time and place for which notice was given, the Board of Directors conducted a public hearing pursuant to Section 5898.26 of the Streets and Highways Code, which included a summary of the Engineer's Report and gave every person present an opportunity to comment on and object to the proposed Alhambra Valley Assessment District Program improvement and the extent of the Assessment District. 5. The Board further finds that written protests against the proposed improvement have not been made by owners representing more than one half of the area of the land to be assessed for the improvement. 6. The documents and events described in paragraphs 1 to 4, inclusive, are stated here in tabular form, with their dates and, where appropriate, their numbers. All documents are now on file with the District except as otherwise noted. N: \ENVRSEC \Position Papers \Swanson\2008 \PP Conduct Hearing Gordon Millthwait AVAD 2007 -02 5- 1- 08.doc Page 9 of 10 Document or Event Date Number or Action a. Resolution of Intention 12/6/08 2007 -183 b. Resolution Approving Boundary Map 12/6/08 2007 -184 c. Boundary Map Filed with Co9nty Recorder Pending -- d. Certificate of Mailing Notice of Improvement 4/7/08 -- e. Affidavit of Publication of Notice of Imp rovement Pendin -- 7. The Board approves the Engineer's Report and each component part of it, including each exhibit incorporated by reference in the report. 8. The Board finds that the Engineer of Work, in the Engineer's Report has fairly and properly apportioned the cost of the improvement to each parcel of land in the Assessment District in compliance with the agreement between the owners and in proportion to the special benefits derived by each parcel, in relationship to the entirety of the capital cost of the improvement. The Board hereby confirms and levies each individual assessment as stated in the Engineer's Report. 9. The Board orders the improvement described in paragraph 2 and as detailed in the Engineer's Report. 10. According to Section 10603 of the Streets and Highways Code, the Board designates the District Controller to collect and receive payment of the assessments. 11. The Board independently finds that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 15061(b)(3), since it can be seen with certainty that there is no possibility that the activity in question may have a significant adverse effect on the environment. This certainty is based on the District's past experience with numerous similar sewer construction projects, the developed nature of the project environment, and the limited service area of the project (no potential for growth inducement). PASSED AND ADOPTED this 1St day of May 2008, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: NOES: Members: ABSENT: Members: Gerald R. Lucey President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: APPROVED AS TO FORM: Elaine R. Boehme, Secretary Kenton L. Alm, District Counsel Central Contra Costa Sanitary District County of Contra Costa, State of California N: \ENVRSEC \Position Papers \Swanson\2008 \PP Conduct Hearing Gordon Millthwait AVAD 2007 -02 5- 1- 08.doc Page 10 of 10 Item No.' Gordon /M i I Ithwa it Alhambra Valley Assessment District No. 2007 -2 Curtis Swanson May 1, 2008 Gordon /Millthwait AVAD Sewer Main Extension • Meets AVAD criteria • Potentially serves 45 properties. • 3,300 feet of 8 -inch sewer; 10 MH • Sewer Main Estimate: $550,904 • Cost per property: $26,766 (includes $7,303 trunk sewer indirect reimbursement fee) ■ Annual Payment: $2,731 1 AVAD Criteria • Minimum of 3 properties per AVAD. • At least 50% participating tributary properties. • At least 60% developed properties. • No more than 2 buildings per participating parcel. • Must pay applicable trunk sewer reimbursement fee. Election Results Gordon /Millthwait AVAD No. 2007 -2 • Approve Assessment: 24 votes • Oppose Assessment: 5 votes • Not voting: 16 properties FA Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 7.a. Bids and Awards Type of Action: CONSIDER BID PROTEST / AWARD CONSTRUCTION CONTRACT / AUTHORIZE EXECUTION OF CONTRACT DOCUMENTS / AUTHORIZE FUNDS Subject: CONSIDER WILLIAM G. MCCULLOUGH COMPANY PROTEST; AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS WITH MCNAMARA & SMALLMAN CONSTRUCTION, INC. FOR THE CONSTRUCTION OF THE WALNUT CREEK SEWER RENOVATION, PHASE 6, DISTRICT PROJECT NO. 5972; APPROVE SUPPLEMENTAL AUTHORIZATION OF $8,695,000 TO THE COLLECTION SYSTEM PROGRAM OF THE FISCAL YEAR 2007 -08 CAPITAL IMPROVEMENT BUDGET Submitted By: Initiating Dept✓Div.: Nancy Molina, Assistant Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: V7�1- 716-- t N. Molina Q. . Ches er/ i ecki A. Farrell Ja es M. Kelly, K�{Irp M. Penny �'"/� � General Manager ISSUE: On April 21, 2008, 10 sealed bids were received and opened for the construction of the Walnut Creek Sewer Renovation, Phase 6, District Project No. 5972. On April 22, 2008, a timely bid protest was received. As part of its deliberations, the Board needs to consider the merits of any timely bid protests. The Board of Directors must award the contract or reject bids within 50 days of the bid opening. Approval by the Board of Directors is required for a supplemental authorization to the fiscal year (FY) 2007 -08 Collection System Program budget. RECOMMENDATION: Find that the project is exempt from the California Environmental Quality Act (CEQA); reject the bid protest; award a construction contract; authorize the General Manager to execute the Contract Documents; and approve a supplemental authorization of $8,695,000 from the Sewer Construction Fund for the Collection System Program of the FY 2007 -08 Capital Improvement Budget (CIB). FINANCIAL IMPACTS: Approximately $2,697,000, including design, bid price, contingency, and construction management, if awarded to McNamara & Smallman. Approximately $65,000 more if awarded to William G. McCullough Company. The approval of the supplemental authorization will allow contracts to be awarded on projects and will allow current projects to continue. There are sufficient funds in the Sewer Construction Fund for this supplemental authorization. ALTERNATIVES /CONSIDERATIONS: Continue the matter for further consideration of the bid protest and /or accept the protest and award to the second low bidder, NAPESUP \Cbradley \Position Papers\Molina \5972 PP Award -2.doc Page 1 of 12 POSITION PAPER Board Meeting Date: May 1, 2008 subject: CONSIDER WILLIAM G. MCCULLOUGH COMPANY PROTEST; AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS WITH MCNAMARA & SMALLMAN CONSTRUCTION, INC. FOR THE CONSTRUCTION OF THE WALNUT CREEK SEWER RENOVATION, PHASE 6, DISTRICT PROJECT NO. 5972; APPROVE SUPPLEMENTAL AUTHORIZATION OF $8,695,000 TO THE COLLECTION SYSTEM PROGRAM OF THE FISCAL YEAR 2007 -08 CAPITAL IMPROVEMENT BUDGET William G. McCullough Company, which is not recommended. Reject all bids, which is also not recommended. If the supplemental authorization is not approved, certain work on several Collection System Program projects, including the project being considered for award today, will be delayed until FY 2008 -09. BACKGROUND: The District's collection system has pipe segments that range in age from new to over 100 years. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and /or threat of structural collapse. A District -wide television inspection program was implemented in 2002 and completed for the Walnut Creek area in 2006. Candidate sewer line segments are identified, evaluated, and placed on a priority list for replacement and /or renovation. This project is the sixth phase of fifteen phases anticipated in Walnut Creek (see Attachment 1). The Walnut Creek Sewer Renovation, Phase 6, will renovate 9,800 linear feet of 6- and 8 -inch sewer lines in Walnut Creek. Construction of the sewers in easements will involve close cooperation with customers for site access and restoration. Staff has also coordinated the project with the City's pavement restoration program. District staff prepared the plans and specifications for the project. The Engineer's estimate for construction of the Walnut Creek Sewer Renovation, Phase 6, is $2,350,000. This project was advertised on March 21 and 27, 2008. Ten (10) sealed bids ranging from $1,704,806 to $2,442,197 were received and publicly opened on April 21, 2008. A summary of bids received is shown in Attachment 2. The Engineering Department conducted a technical and commercial review of the bids and determined that McNamara & Smallman Construction, Inc. (MSC) is the lowest responsive bidder with a bid amount of $1,704,806. Staff has also reviewed the bid submitted by William G. McCullough Company (McCullough), the second low bidder, and determined its bid to be responsive. On April 22, 2008, the second low bidder, McCullough, submitted a timely bid protest essentially claiming that the bid submitted by MSC was non - responsive and incomplete on the grounds that it failed to list a paving subcontractor (Attachment 3). MSC NAPESUMbradley \Position Papers \Molina \5972 PP Award -2.doc Page 2 of 12 POSITION PAPER Board Meeting Date: May 1, 2008 Subject: CONSIDER WILLIAM G. MCCULLOUGH COMPANY PROTEST; AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS WITH MCNAMARA & SMALLMAN CONSTRUCTION, INC. FOR THE CONSTRUCTION OF THE WALNUT CREEK SEWER RENOVATION, PHASE 6, DISTRICT PROJECT NO. 5972; APPROVE SUPPLEMENTAL AUTHORIZATION OF $8,695,000 TO THE COLLECTION SYSTEM PROGRAM OF THE FISCAL YEAR 2007 -08 CAPITAL IMPROVEMENT BUDGET responded to the bid protest in its letter dated April 23, 2008 stating that it is MSC's intent to do the paving work with its own forces and that MSC, therefore, did not need to list any paving subcontractors (Attachment 4). Accordingly, MSC asserted that its bid was complete and responsive. District staff and Legal Counsel have reviewed McCullough's bid protest and MSC's response and have determined that the bid protest is without merit. When a general contractor intends to do particular parts of a project with its own employees, there is no need to list a subcontractor for such work in its bid forms. MSC states that it did not list a paving subcontractor because it intends to do the paving work with its own forces. As noted by MSC, this intent is consistent with MSC's practice in its previous work on District projects, including the North Orinda Sewer Renovation, Phase 1 Project, where MSC did its own paving work. Therefore, staff has determined that the bid submitted by MSC is responsive and MSC is the lowest responsive bidder with a bid amount of $1,704,806. A letter stating staff's determination was sent to McCullough on April 25, 2008 (Attachment 5). In accordance with the Contract Documents, the Board has the ultimate authority to determine whether a bid is responsive or not and to accept or reject bid protests. If McCullough disputes staffs determination, it may send representatives to the Board meeting to speak on the matter, and request further Board review of the bid protest. Staff seeks the Board's concurrence with staffs determination rejecting the bid protest and award of the project. 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 $2,327,000. The total cost of the Walnut Creek Sewer Renovation, Phase 6, is anticipated to be $2,697,000. This project is included in the FY 2007 -08 CIB on pages CS-41 through CS -42. Staff has conducted a cash -flow analysis of the Collection System Program and concluded that the current allocable funds are insufficient to fund this project. As part of the annual CIB adoption process, the Board of Directors authorizes funding levels for each of the four capital programs: Treatment Plant, Collection Systems, General Improvements, and Recycled Water. NAPESUP\Cbradley \Position Papers \Molina \5972 PP Award -2.doc Page 3 of 12 POSITION PAPER Board Meeting Date: May 1, 2008 subject: CONSIDER WILLIAM G. MCCULLOUGti COMPANY PROTEST; AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS WITH MCNAMARA & SMALLMAN CONSTRUCTION, INC. FOR THE CONSTRUCTION OF THE WALNUT CREEK SEWER RENOVATION, PHASE 6, DISTRICT PROJECT NO. 5972; APPROVE SUPPLEMENTAL AUTHORIZATION OF $8,695,000 TO THE COLLECTION SYSTEM PROGRAM OF THE FISCAL YEAR 2007 -08 CAPITAL IMPROVEMENT BUDGET The Board authorized $44,107,000 for the Collection System Program for FY 2007 -08, which reauthorized project carryover allocations and authorized new allocations for projects. The need for the supplemental authorization arises principally from the understatement of the actual authorized project carryover allocations. This issue of understating the project carryover allocations was discussed at the April 10th Capital Budget Workshop, and staff proposed to address this issue by updating the CIB in August of each year to reflect the actual project carryover allocations. Staff is requesting a supplemental authorization in the amount of $8,695,000 to the Collection System Program. The increased authorization will allow allocations for the collection system projects listed in Attachment 4. Staff has concluded that the Walnut Creek Sewer Renovation, Phase 6 Project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 15301, since it involves only alterations of existing facilities with negligible or no expansion of capacity. Authorization of the construction contract for this project will establish the Board of Directors' independent finding that the project is exempt from CEQA. RECOMMENDED BOARD ACTION: Staff recommends the following: 1. Approve a supplemental authorization of $8,695,000 from the Sewer Construction Fund for the FY 2007 -08 Collection System Program. 2. Find that the project is exempt from CEQA. 3. Reject the Bid Protest. 4. Award a construction contract in the amount of $1,704,806 for the construction of the Walnut Creek Sewer Renovations, Phase 6, to McNamara & Smallman Construction, Inc., the lowest responsive bidder, and authorize the General Manager to execute the Contract Documents. NAPESUMbradley\Position Papers \Molina \5972 PP Award -2.doc Page 4 of 12 9000 6000 FEET SEWER RENOVATION LOCATION Central Contra Costa Sanitary District WALNUT CREEK SEWER RENOVATION PHASE 6 - CCCSD No. 5972 LOCATION MAP Page 5 of 12 Attachment ATTACHMENT 2 WALNUT CREEK SEWER RENOVATION, PHASE 6 DISTRICT PROJECT 5972 SUMMARY OF BIDS PROJECT NO.: 5972 DATE: APRIL 21, 2008 PROJECT NAME: WALNUT CREEK SEWER RENOVATION, PHASE 6 PROJECT LOCATION: WALNUT CREEK, CALIFORNIA ENGINEER EST.: $2,350,000 BIDDER BID PRICE McNamara & Smallman Construction, Inc. $1,704,806 1756 Holmes Street Livermore, CA 94550 William G. McCullough Company $1,769,955 2625 E. 18th Street Antioch, CA 94509 D'Arcy & Harty $1,834,378 1300 Carroll Avenue San Francisco, CA 94124 McGuire and Hester $1,860,174 9009 Railroad Avenue Oakland, CA 94603 California Trenchless, Inc. $1,865,321 2283 Dunn Road Hayward, CA 94545 Argonaut Constructors $2,022,632 1236 Central Avenue Santa Rosa, CA 95401 Delta Excavating, Inc. $2,127,155 307 Fulton Shipyard Road Antioch, CA 94509 K. J. Woods $2,158,000 2625 Judah Street, Suite 2 San Francisco, CA 94122 D & D Pipelines, Inc. $2,235,790 629 Divisadero Street San Francisco, CA 94117 J & M, Inc. $2,442,197 6700 National Drive Livermore, CA 94550 BIDS OPENED BY /s/ Elaine Boehme DATE April 21, 2008 SHEET NO. 1 of 1 NAPESUP\Cbradley\Posibon Papers \Molina \5972 PP Award -2.doc Page 6 of 12 WILLIAM G. McCULLOUGH CO. GENERAL ENGINEERING CONTRACTORS EXCAVATING PAVING GRADING UNDERGROUND Ms. Nancy Molina Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, Ca 94553 ATTACHMENT 3 CONTRACTORS LICENSE No. 234547A, C•10 P.O. Box 2119 - 2625 EAST 18Th STREET • ANTIOCh, CAlifORNiA 94531 -2119 Re: Walnut Creek Sewer Renovation - Phase 6 District Project No. 5972 Bid Date: April 21, 2008 Subject: Protest of Apparent Low Bidder Dear Ms. Molina: TEIEpHONE (925) 757 -1394 FAX (925) 757 -8863 April 22, 2008 This letter is to serve as our formal Bid Protest of the apparent low bidder, McNamara and Smallman Construction, Inc. of Livermore, Ca. for your Walnut Creek Sewer Renovation - Phase 6 Project. William G. McCullough Co. is the apparent second low bidder of this project. Our protest is based on the information that McNamara and Smallman Construction did not list any Subcontractors on page 27 of the bid documents, List of Subcontractors. It is our belief that McNamara and Smallman Construction should have listed a paving Subcontractor for this project. We do not believe that McNamara and Smallman Construction self perform paving construction, as we are aware of at least one Public Works Project they bid, in which they listed using a paving Subcontractor. The Walnut Creek Sewer Renovation - Phase 6, includes paving work requiring installation by a qualified paving contractor. The project specification states any subcontractor performing work in excess of 1/2 of one percent must be listed. Per Bidders Statement of Subcontractors, page 26 of the bid documents, "failure to name such subcontractors shall be witness that the Contractor shall have agreed to perform such portion of the work; and that the Contractor shall not subcontract said portion of the work." We appreciate your consideration in evaluating this protest and await your response. Sincerely, William G. ugh Co. Sincerely, C. Wilkers V.P. of Operations CC.' McNamara and Smallman Construction, Inc. 1756 Holmes Street, Livermore, Ca 94550 Page 7 of 12 A� 2�. 20 '':41AM p�p1�A & �O au +ewueNCw �• curriuCroR3 �SraUCT10% Calif. Lie. No. 622600 1756 Holmes Street April 23, 2008 Nc.5291 °, 2 ATTACHMENT 4 McNAMARA A SMALLMAN CONSTRUCTION INC. GENERAL ENGINEERING CONTRACTOR Livermore, Califomia 94560 Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 Attn: Nancy Molina RE: Bid proposal for "Walnut Creek Sewer Renovation -phase 6" Nancy, (925) 606 -7190 • FAX (926) 606 -0335 Per your request I am writing you this letter to confirm that we do intend to do the paving on the above referenced job with our own forces. We have done paving on most of our jobs with the exception being some jobs that require a complete reconstruction. We do opt to subcontract complete reconstruction, curb to curb, on some jobs but we are capable and have done this work ourselves. The district has first hand knowledge of our ability to pave; most recently we did the paving on a district project named "North Orinda Sewer Renovation ", a 2 million dollar project. We fmd the protest from William 0 McCullough Co. to be without merit. Even with any minor investigation they should have been able to determine that we have the capabilities to do our own paving, and without such investigation or knowledge they have no right to protest our bid. We have been in business since 1991 and have done jobs all around the bay area most of which that are very much the same as this project. We find it ironic that McCullough protested, as they are not normally doing these kinds of projects. In conclusion we did not make a mistake in our not listing a subcontractor to do the paving as we fully intend to do that work with our own forces. I sincerely hope this puts an end to this frivolous protest, Please feel free to give me a call if you have any questions. We are looking forward to another successful project. Sincerely, C4t91W-- Bob Smallman President Page 8 of 12 ATTACHMENT 5 Jl Central Contra Costa Sanitary District 1 5019 Imhoff Place, Martinez, CA 94553 -4392 (925) 228 -9500 www.centralsan.org April 25, 2008 File: 5972.5.1.4 CERTIFIED MAIL NO. 7007 0710 0004 6169 5694 RETURN RECEIPT REQUESTED Mr. Richard C. Wilkerson, Vice President William G. McCullough Company 2625 East 18th Street Antioch, CA 94531 -2119 Dear Mr. Wilkerson: FAX: (925) 372 -7892 JAMES M. KELLY General Manager KENTON L. ALM Counsel for the District (510) 808 -2000 ELAINE R. BOEHME Secretary of the District WALNUT CREEK SEWER RENOVATION - PHASE 6, CENTRAL CONTRA COSTA SANITARY DISTRICT PROJECT 5972, PROTEST OF BID Thank you for your interest in Central Contra Costa Sanitary District's (District) Project No. 5972 ( "Project "). We have received your letter of April 22, 2008, which protests the bid submitted by McNamara & Smallman Construction, Inc. for the Project. After careful review of your letter with our District Counsel, we respectfully disagree with the positions set forth in your letter and hereby deny your bid protest. Consequently, the Central Contra Costa Sanitary District will recommend award of the contract for this Project to McNamara & Smallman Construction, Inc. (MSC). In response to your issue that MSC failed to list a subcontractor, MSC has provided the District with a letter dated April 23, 2008 indicating that it plans to do the paving with its own forces (Attachment 1). In response to your issue that MSC cannot self - perform paving, MSC's letter states that they do the paving on most of their jobs, with the exception being some jobs that require a complete reconstruction. The District has first -hand knowledge of MSC's ability to do paving work as a result of our North Orinda Sewer Renovation, Phase 1 Project. Based on the foregoing, the District has made a determination that the bid presented by McNamara & Smallman Construction, Inc. is the lowest responsive bid. Accordingly, the District will recommend award of a contract to McNamara & Smallman Construction, Inc. at the May 1, 2008 Board meeting. Thank you for your interest in Central Contra Costa Sanitary District. N:\PESUP \Cbradley \Position Papers \Molina \5972 PP Award -2.doc Page 9 of 12 C40 Recycled Paper Mr. Richard C. Wilkerson, Vice President William G. McCullough Company Page 2 April 25, 2008 Please contact me if you have any questions. Sincerely, Michael Penny Provisional Senior Engineer TP:MJP:cb cc: A. Farrell, CCCSD J. Kelly, CCCSD T. Pilecki, CCCSD K. Alm, Meyers Nave Riback Silver & Wilson NAPESUP\Cbradley \Position Papers \Molina \5972 PP Award -2.doc Page 10 of 12 cc H W 2 Q (D W N Q a O Q O W W w U) W W I-- J g r N ti O� U) O Z V w 'y w a F- y rMl W H a W H U, Z c LL .r N O V c O o e o f M ` O O r - ° M r N wr N r r r r C O V 0 O 0 0 � o cc N M 40 N c o °o le o C eR cc IV °o °O_ °O_o C °o °O °O a°o � O W) U) q* � Or r ti N � � NSA � N? 1�4 Vol. N N i ww i I 1- W 1 I W Q N _ ..� L C = d w = c C. z p H Z E m O M z p �_' p w Q W J W• •v0i W I f D m �� *� V W. C7 eco N c 0) 'a c V y a X O Z c_ O J 0 E 0 v C y Q z N = o o '� = u CO w ce w E- O �•- F= vv Z v 0 V Z R R V p c R OC V J O p IM c_ p� aN c. = �� d z•r_ W 3a d� I w -� O _ as �C y+ EH 5N -va 0�C7H W LU ' Z� �t0vCL �'c O v m oW O a - a z cd v y z ea N Fo ed '° O z G O V C3 a LL Q V Z N M 1[1 tC N O co a- 0 v CV v 3 a CL (L y CL 0 a 0 CL U d U) w a ATTACHMENT 7 COLLECTION SYSTEM PROJECTS TO BE FUNDED IN FISCAL YEAR 2007 -08 BY THE SUPPLEMENTAL AUTHORIZATION Project Title Allocation Needed Walnut Creek Sewer Renovations, Phase 6 $2,350,000 Camino Pablo Trunk Sewer Improvements and Flush Kleen Force Main Renovation Project $2,000,000 Northern Pumping Station Upgrades $ 400,000 Martinez Sewer Renovations, Phase 2 $1,500,000 Sleepy Hollow Pumping Station Improvement $ 120,000 South Orinda Renovations, Phase 3 $1,000,000 Lafayette Renovations, Phase 5 $1,000,000 North Orinda Renovations, Phase 2.1 $ 200,000 Manhole Rehabilitation $ 125,000 Total Supplemental Authorization Needed $8,695,000 NAPESUMbradley \Position Papers \Molina \5972 PP Award -2.doc Page 12 of 12 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 7.b. Bids and Awards Type of Action: AWARD CONSTRUCTION CONTRACT /AUTHORIZE EXECUTION OF CONTRACT DOCUMENTS subject: AWARD A CONSTRUCTION CONTRACT TO D. W. NICHOLSON CORPORATION AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS FOR THE CONSTRUCTION OF THE DISSOLVED AIR FLOTATION THICKENERS (DAFT) POLYMER SYSTEM IMPROVEMENTS, DISTRICT PROJECT 7258 Submitted By: Initiating Dept. /Div.: Gary Rathunde, Associate Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: A.A. a .Pc , G. Rathunde A. Antkowiak ilecki n, A. Farrell Ja s M. Kelly, V }✓ — General Manager ISSUE: On April 9, 2008, seven sealed bids were received and opened for the construction of the DAFT Polymer System Improvements, District Project 7258. The Board of Directors must award the contract or reject bids within 50 days of the bid opening. RECOMMENDATION: Find that the project is exempt from the California Environmental Quality Act (CEQA), award a construction contract to D. W. Nicholson Corporation, and authorize the General Manager to execute the Contract Documents. FINANCIAL IMPACTS: Approximately $875,000, including design, bid price, contingency, and construction management. ALTERNATIVES /CONSIDERATIONS: Reject all bids, which is not recommended. Award just the base bid schedule work, which is also not recommended. BACKGROUND: The 2005 Solids Handling Facilities Plan Update identified the need to upgrade the polymer addition system for the existing DAFT units. Presently, when one of the three DAFT units is down for maintenance, staff must add polymer to meet peak loading conditions. By 2012, polymer addition will be required continuously to meet peak loading conditions with all three DAFT units in operation. The existing polymer system utilizes dry polymer, is a manual system intended for intermittent use, and has not been reliable. The Solids Handling Facilities Plan Update recommended replacing the existing manual dry polymer system with a more reliable automatic liquid polymer system. Attachment 1 shows the location of this project work. N: \PESUP \Position Papers \Rathunde \7258_Award_ger.doc Page 1 of 7 POSITION PAPER Board Meeting Date: May 1, 2008 Subject: AWARD A CONSTRUCTION CONTRACT TO D. W. NICHOLSON CORPORATION AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS FOR THE CONSTRUCTION OF THE DAFT POLYMER SYSTEM IMPROVEMENTS, DISTRICT PROJECT 7258 In July 2006, District staff executed a Professional Engineering Services agreement with Damon S. Williams Associates (DSWA) to prepare design drawings and specifications to modify the existing polymer system. The project was advertised on January 12 and 17, 2007. Four bids ranging from $771,500 to $886,900 were received on February 13, 2007. The bid prices were higher than expected and staff recommended that all bids be rejected and the project be value engineered, redesigned, and re -bid at a future date. In December of 2007, District staff executed a revision to the Professional Engineering Services agreement with DSWA for the redesign work on the project. DSWA retained DTN Engineers as their subconsultant for the preparation of the electrical and instrumentation plans and specifications. The revised design reduced the amount of electrical and structural work on the project and simplified the instrumentation and control portion of the work. DSWA and District staff prepared the plans and specifications for the project. The Engineer's estimate for construction of the DAFT Polymer System Improvements was $540,000. This project was advertised on March 7 and 12, 2008. Seven sealed bids ranging from $419,700 to $564,000 were received and publicly opened on April 9, 2008. The Engineering Department conducted a technical and commercial review of the bids and determined that D. W. Nicholson Corporation is the lowest responsive bidder with a bid amount of $419,700. A summary of bids received is shown in Attachment 2. The bid forms included a base bid schedule, which was used as a basis to compare bids to determine the lowest responsive bidder, and an additive bid schedule for additional work the District may elect to have constructed. The additive bid schedule requested costs from the bidders for the installation of a fourth polymer metering pump and its variable frequency drive and a second polymer mixing unit. These components would add redundancy to the system, but were not included in the base bid to keep the work within budget. The bid prices for the additional work ranged from $81,450 to $115,400. Attachment 3 shows a summary of the base bid and the additive bid prices. In this particular case, D. W. Nicholson Corporation's total bid for the base bid and additive bid schedules was still the lowest bid at $526,500 and was below the estimated cost for the project. Because of the favorable bids received, staff recommends awarding both the base bid work and the additive bid item work under this contract. N:\PESUP \Position Papers \Rathunde \7258_Award_ger.doc Page 2 of 7 POSITION PAPER Board Meeting Date: May 1, 2008 subject: AWARD A CONSTRUCTION CONTRACT TO D. W. NICHOLSON CORPORATION AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS FOR THE CONSTRUCTION OF THE DAFT POLYMER SYSTEM IMPROVEMENTS, DISTRICT PROJECT 7258 The District will perform construction management, contract administration, inspection, survey, office engineering, and submittal review. Staff did not retain DSWA for support services during construction because District staff can perform the necessary review for the mechanical and structural portion of the work. An agreement with DTN Engineers with a cost ceiling of $16,000 will be executed for electrical and instrumentation support services during construction. The $16,000 agreement is within staff limits and, therefore, does not require Board action. The funds required to complete this project, as shown in Attachment 4, are $769,000. The total cost of DAFT Polymer System Improvements is anticipated to be $875,000. This project is included in the fiscal year 2007 -2008 Capital Improvement Budget (CIB) on pages TP -41 to TP -43. Staff has determined that there are adequate funds in the Treatment Plant Program 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 minor alterations to an existing public facility involving negligible or no expansion of use. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. RECOMMENDED BOARD ACTION: Staff recommends the following: 1. Find that the project is exempt from CEQA, 2. Award a construction contract in the amount of $526,500 for the construction of the DAFT Polymer System Improvements, District Project 7258, to D. W. Nicholson Corporation, the lowest responsive bidder, and authorize the General Manager to execute the Contract Documents. N:\PESUP \Position Papers \Rathunde \7258_Award_ger.doc Page 3 of 7 NA Sanitary District DAFT POLYMER SYSTEM IMPROVEMENTS I ATTACHMENT DISTRICT PROJECT 7258 Am& 1 1 LOCATION MAP NAPESUP \Position Papers \Rathunde \7258_Award_ger.doc Page 4 of 7 ATTACHMENT 2 DAFT POLYMER SYSTEM IMPROVEMENTS DISTRICT PROJECT NO. 7258 SUMMARY OF BIDS PROJECT NO.: 7258 DATE/TIME: APRIL 9,2008/2:00 PM PROJECT NAME: DAFT POLYMER SYSTEM IMPROVEMENTS (REBID) PROJECT MANAGER: GARY E. RATHUNDE PROJECT LOCATION: MARTINEZ, CALIFORNIA ENGINEER EST.: $540,000 NO. BIDDER BID PRICE 1 D. W. Nicholson Corporation $419,700 24747 Clawiter Road Hayward, CA 94540 2 Geveden Industrial $445,370 4370 Via Ventura Red Bluff, CA 96080 3 NCCI, Inc. $491,941 Pier 26 - The Embarcadero San Francisco, CA 94105 4 Valentine Corporation $494,600 111 Pelican Way San Rafael, CA 94901 5 Kaweah Construction Co. $519,201 3960 Industrial Boulevard, Suite 300 W. Sacramento, CA 95691 6 Gantry Constructors, Inc. $534,800 917 Main Street Clarkdale, AZ 86324 7 Monterey Mechanical Company $564,000 8275 San Leandro Street Oakland, CA 94621 BIDS OPENED BY /s/ Elaine Boehme DATE April 9, 2008 NAPESUP \Position Papers \Rathunde \7258_Award_ger.doc Page 5 of 7 ATTACHMENT 3 DAFT POLYMER SYSTEM IMPROVEMENTS DISTRICT PROJECT NO. 7258 SUMMARY OF ADDITIVE BID PRICES ENGINEERS ESTIMATE $540,000 NO. BIDDER BASE BID ADDITIVE BID TOTAL BID PRICE PRICES PRICE 1 D. W. Nicholson Corporation $419,700 $106,800 $526,500 24747 Clawiter Road Hayward, CA 94540 2 Geveden Industrial $445,370 $81,450 $526,820 4370 Via Ventura Red Bluff, CA 96080 3 NCCI, Inc. $491,941 $105,819 $597,760 Pier 26 - The Embarcadero San Francisco, CA 94105 4 Valentine Corporation $494,600 $115,400 $610,000 111 Pelican Way San Rafael, CA 94901 5 Kaweah Construction Co. $519,201 $99,000 $618,201 3960 Industrial Boulevard, Suite 300 W. Sacramento, CA 95691 6 Gantry Constructors, Inc. $534,800 $115,000 $649,800 917 Main Street Clarkdale, AZ 86324 7 Monterey Mechanical Company $564,000 $104,500 $668,500 8275 San Leandro Street Oakland, CA 94621 Note: It is possible that on future projects where an additive bid schedule is included, the lowest responsive bidder for the base bid is not the lowest bidder for the base bid plus the additive bid schedule. If the District chose to pursue the additional work, it would still award the project on the basis of the base bid, even though the total project cost of the base bid plus additional bid schedule may be higher. For this project, D. W. Nicholson is the lowest responsive bidder for the base bid (which is the basis of award) as well as the base bid plus the additive bid schedule. NAPESUP \Position Papers \Rathunde \7258_Award_ger.doc Page 6 of 7 z W Q Q H z W 2 w O a W ,H,^ V/ N w W J O a. H LL D Co to N n z H U w N7 w a U N rW W H Q U) w z O D w H N z O U w a D m H N a N O U c 0 r o 0 0 r TO N r N C O U \° 0 0 0 Cl 0 O o o m ti o T fss t� o0 00 = 0 Cl) M t0 M to O 0 w TER T Q 00 °o 00 00 00 00 L O O o O m N m O ui 0) ui N m T cc O W T t} to T- 0 a z . W W c 0 W O O tj CL Z W ~ U) c V CO) W = z O CL F- E C 0 z O H W J w m v W w of v Fw- o N G1 r o m 2 CL _ m N a K O z= 0 J r. Ix 0 co V o p m Q m Cl) > E_ w O W V U OJ' z 0, O z�o h.= 0 = c0 O m N JO O 0 0 a� O , H w z w 0� a U W O Q� C C a = t5 N c O U 0 0 C~ J d 0 d J Q = J w CL O O F- r' , O 0� W C Q m IL z H OLU v v m o v m D= w O I N Im-a z 0 M z D W ci m H z 0 O N O N a m LL ay. C5 N M !F O cD O I- N rn co a Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 7.c. Bids and Awards Type of Action: AWARD CONSTRUCTION CONTRACT /AUTHORIZE AGREEMENTS Subject: AWARD A CONSTRUCTION CONTRACT TO C. OVERAA & COMPANY, AUTHORIZE PROFESSIONAL SERVICES AGREEMENTS WITH ATI ARCHITECTS AND ENGINEERS (ATI) AND MONTGOMERY WATSON HARZA (MWH), AND AUTHORIZE EXECUTION OF CONTRACT DOCUMENTS FOR THE CONSTRUCTION OF THE STANDBY POWER FACILITY IMPROVEMENTS PROJECT, DISTRICT PROJECT 7248. Submitted By: Initiating Dept /Div.: Tom Godsey, Associate Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: Q r-'60 C46 J . T. Godsey A. Antkowiak . lecki (j A. Farrell Janfes M. Kelly, General Manager ISSUE: On April 21, 2008, eight (8) sealed bids were received and opened for construction of the Standby Power Facility Improvements Project, District Project 7248. 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, authorize professional service agreements, and authorize the General Manager to execute the Contract Documents. FINANCIAL IMPACTS: Approximately $5,432,000 including design, bid price, contingency, consultants and construction management. ALTERNATIVES /CONSIDERATIONS: 1. Reject all bids, which is not recommended. 2. The professional services agreements with ATI and MWH are for construction support services (shop drawing review, responding to design clarifications, evaluate change order requests, and perform site visits). The District does not have the staff available to provide these services. M \PESUMPosition Papers \Godsey \7248 - Award- draft3.doc Page 1 of 6 POSITION PAPER Board Meeting Date: May 1, 2008 subject. AWARD A CONSTRUCTION CONTRACT TO C. OVERAA & COMPANY, AUTHORIZE PROFESSIONAL SERVICES AGREEMENTS WITH ATI ARCHITECTS AND ENGINEERS (ATI) AND MONTGOMERY WATSON HARZA (MWH), AND AUTHORIZE EXECUTION OF CONTRACT DOCUMENTS FOR THE CONSTRUCTION OF THE STANDBY POWER FACILITY IMPROVEMENTS PROJECT, DISTRICT PROJECT 7248. BACKGROUND: The Standby Power Facility built in 1993, is equipped with two Detroit Diesel 1.6 megawatt diesel engine driven generators (See Attachment 1 for Project Location). The California Air Resources Board has recently restricted allowable particulate emissions from diesel engines for non - emergency operations. The new restrictions will not allow acceptable operations and maintenance testing of the Standby Power Facility with the existing engines. Staff analyzed retrofitting the existing diesel engines with particulate filters but the filters would still not allow sufficient operations and maintenance testing time. Staff also evaluated reliability of the existing engines and determined that replacement engines offered significant reliability improvements. The project scope also includes bringing the facility building up to 1997 Uniform Building Code seismic standards and improving the dependability of the plant power system. Plans and specifications for this project were produced by ATI, MWH, and District staff. The Engineer's estimate of construction costs was $5,500,000. The project was advertised on March 13 and 19 of 2008. Eight (8) bids, ranging from $3,693,000 to $5,298,286, were received and publicly opened on April 21, 2008. A summary of these bids is shown on Attachment 2. Staff conducted a commercial and technical evaluation of these bids and has determined that C. Overaa & Company is the lowest responsive bidder with a bid amount of $3,693,000. District staff will perform construction management, contract administration, and construction inspection. Staff recommends engaging ATI and MWH to provide support services during construction for this project because both consultants helped prepare the plans and specifications and, therefore, have 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. Construction support services contracts with a cost ceiling of $75,000 and $150,000 have been negotiated with ATI and MWH respectively. The funds required to complete this project, as shown in Attachment 3 are $4,992,000. The total cost of the Standby Power Facility Improvements is anticipated to be $5,432,000. The Standby Power Facility Improvements Project is included in the Fiscal Year 2007 -08 Capital Improvement Budget, pages TP -106 through TP -108. Staff has conducted cash -flow analysis of the Treatment Plant Program and concluded that adequate funds are available for this project. N:\PESUP \Position Papers \Godsey \7248 - Award- draft3.doc Page 2 of 6 POSITION PAPER Board Meeting Date: May 1, 2008 subject AWARD A CONSTRUCTION CONTRACT TO C. OVERAA & COMPANY, AUTHORIZE PROFESSIONAL SERVICES AGREEMENTS WITH ATI ARCHITECTS AND ENGINEERS (ATI) AND MONTGOMERY WATSON HARZA (MWH), AND AUTHORIZE EXECUTION OF CONTRACT DOCUMENTS FOR THE CONSTRUCTION OF THE STANDBY POWER FACILITY IMPROVEMENTS PROJECT, DISTRICT PROJECT 7248. At its September 1, 2005 meeting, the District Board of Directors found the Standby Power Facility Improvements Project to be exempt from the California Environmental Quality Act (CEQA). RECOMMENDED BOARD ACTION: Staff recommends the following: 1. Award a construction contract in the amount of $3,693,000 for construction of the Standby Power Facility Improvements Project, District Project 7248, to C. Overaa & Company, the lowest responsible and responsive bidder, and authorize the General Manager to execute the Contract Documents. 2. Authorize the General Manager to execute a professional service agreement not to exceed $75,000 with ATI 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. 3. Authorize the General Manager to execute a professional service agreement not to exceed $150,000 with MWH 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 \Godsey \7248 - Award- draft3.doc Page 3 of 6 1 0 150 300 FEET J oh s 0 �1 �i o W�arehousle �+ ` v sdth , WPM L<1�3 PROJECT SITES P / / oO // /i i Central Contra Costa STANDBY POWER FACILITY Attachment Sanitary District IMPROVEMENTS District Project 7248 e ' Project � r sect Location Page 4 of 6 Attachment 2 CENTRAL CONTRA COSTA SANITARY DISTRICT SUMMARY OF BIDS PROJECT NO.: 7248 DATE/TIME: APRIL 21, 2008 PROJECT NAME: STANDBY POWER FACILITY IMPROVEMENTS PROJECT PROJECT MANAGER: TOM GODSEY PROJECT LOCATION: MARTINEZ, CALIFORNIA ENGINEER EST.: $5,500,000 NO. BIDDER BID PRICE 1 C. Overaa & Company $ 3,693,000 200 Parr Blvd. Richmond, CA 94801 510- 234 -0926 2 L. L. Christian Construction, Inc. $ 3,806,700 5070 Robert J. Mathews Parkway Suite 100 El Dorado Hills, CA 95762 916- 939 -9750 3 Anderson Pacific Construction Company, Inc. $ 4,011,088 1390 Norman Avenue Santa Clara, CA 95054 408 - 970 -9900 4 Helix Electric, Inc. $ 4,185,000 8260 Camino Santa Fe San Diego, CA 92121 858- 623 -1429 5 ProVen Management, Inc. $ 4,242,414 706 Sansom Street San Francisco, CA 95111 415- 421 -9500 6 Ryan Company $ 4,368,000 25 Constitution Drive Taunton, Ma 02780 508- 742 -2517 7 D. W. Nicholson Corporation $ 4,575,000 24747 Clawiter Road Hayward, CA 94540 510- 887 -0900 8 Valentine Corporation $ 5,298,286 111 Pelican Way San Rafael, CA 94901 415- 453 -3732 BIDS OPENED BY /s/ Elaine Boehme DATE: April 21, 2008 N: \PESUP \Position Papers \Godsey \7248 - Award- draft3.doc Page 5 of 6 M H W a F- a H U W n O w a U) F-- z W W 'o a H J v LL w a m zz N 00 d' N ti 0 z H W 7 a U) 13 W N a W z O H H z Q w m a N O U _ O_ O O ti CO V rr N r r � _ O U 0 O CD O O O N M le O :3 �s °0 CD °o O CL o LO LO Q O fR E 69. a O O O O O O O O O O O O O O O O O O O O O O C C 0 C C C C C CL 0 0 M o et ui o 0 o ui o 0 0 CA tict N EPi O O W 04 Cp T- tEa 1- Cf} r EA 1- fA Cn M r m M 4a 40 0 � W a N z W m _ 2 O E LU U O a a co o C v m Q w a 2 Q. 0 z m 0 ,� W W w Q z N ev o U W C� = � �"' U �� 4. X O z O �n 0 co co d r r O Z Q 4)= w+ N e=C z O U W U J O d 0 ° o O w N O 0 CD O - LL a N _ z L a w O a 16- W O `�° O O H I I I 10, o w 'am � a a O U �0U)L) �o U I g a =O U) W Z eo .a ci = z D W eC m z 130 v co v N a co N U- Qa � 7i O (0 N m m n. 0 .y 0 a D W a 1� Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER 8.a. Items Held Over From Previous Board Meeting Date: May 1, 2008 No.: Board Meetings Type of Action: AUTHORIZE AWARD OF CONSTRUCTION CONTRACT /AUTHORIZE EXECUTION OF CONTRACT DOCUMENTS subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS WITH MELLONI CONSTRUCTION, INC. FOR THE CONSTRUCTION OF CONTROL ROOMS MODIFICATIONS, DISTRICT PROJECT NO. 7253 Submitted By. Initiating Dept /Div.: Nathaniel Morales, Assistant Engineer Engineering / Capital Projects Ba T. Than, Senior Engineer REVIEWED AND RECOMMENDED FOR BOARD ACTION. N. Morales-7B. Than A. Antkowiak i J_A. Farrell K. Alm 'Jgnfis M. Kelly, General Manager ISSUE: On March 27, 2008, four (4) sealed bids were received and opened for the construction of the Control Rooms Modifications, District Project No. 7253. The Board must award the contract or reject bids within 50 days of the bid opening. RECOMMENDATION: Find that the project is exempt from the California Environmental Quality Act, award a construction contract and authorize the General Manager to execute the Contract Documents. FINANCIAL IMPACTS: Approximately $732,000, including design, bid price, contingency, and construction management. ALTERNATIVES /CONSIDERATIONS: Reject all bids, which is not recommended. BACKGROUND: The plant's two control rooms in the Plant Operations Department Building (POD) and the Solid Conditioning Building (SCB) were constructed in the 1970s and have not had any major architectural updates. The main POD control room has worn floor tiles, stained ceiling and paint, minimal natural lighting, and a constricted floor plan. Both control rooms' work surfaces are not ergonomic and they are not well suited for the plant's new control system. This project will remodel the main control room in the POD and replace a computer console in the SCB Control Room. The remodel includes demolition of interior walls, installation of fire rated walls and ceiling, a new HVAC system, built -in desks and cabinets, replacement of the fire suppression system, the floor tiles and replacement of the ceiling tile system. The project will also replace the computer workstation in the SCB control room to accept the new control system computers. See Attachment 1 for project location. N: \PESUP \Position Papers \Morales \7253 Award Construction Contract 4 17 2008.doc Page 1 of 7 POSITION PAPER Board Meeting Date: May 1, 2008 subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS WITH MELLONI CONSTRUCTION, INC. FOR THE CONSTRUCTION OF CONTROL ROOMS MODIFICATIONS, DISTRICT PROJECT NO. 7253 Montgomery Watson Harza (MWH) prepared the plans and specifications for the architectural and lighting work, and AEPC Group, LLC (AEPC) prepared the plans and specifications for the HVAC and fire suppression work. The scope of work and fee schedule for the design work was authorized by the Board under the Plant Control Systems Project (DP 7204). The Engineer's estimate for construction of the Control Rooms Modifications is $450,000. This project was advertised on February 27 and March 4, 2008. Four sealed bids ranging from $433,231 to $466,258 were received and publicly opened on March 27, 2008. A summary of bids received is shown in Attachment 2. As discussed at the April 17th Board Meeting, the apparent first and second low bidders filed cross bid protests on April 2, 2008 and April 3, 2008. On April 16, 2008, the second low bidder, N. E. Carlson Construction, Inc., withdrew its bid protest (see Attachment 3). The Engineering Department has conducted a technical and commercial review of the apparent low bid of $433,231 submitted by Melloni Construction, Inc. and concluded that the bid has certain technical deficiencies, none of which alone are deemed as material. The Board may in its discretion waive such non- material deficiencies and award the project to Melloni Construction, Inc. as the lowest responsive bidder. The District will administer the construction contract and will provide contract administration, inspection, survey, office engineering, and submittal review. During the construction, new contracts with both MWH and AEPC will be drafted for $10,000 each for construction support services. The two $10,000 contracts are within staff limits and therefore do not require Board's action. The additional funds required to complete this project, as shown in Attachment 4, are $657,000. The total cost of Control Rooms Modifications Project is anticipated to be $732,000. This project is included in the FY 2007 -08 Capital Improvement Budget (CIB) on pages TP -57 to TP -59. Staff has conducted a cash -flow analysis of the Treatment Plant Program 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 District CEQA Guidelines, Section 15301, since it involves only alterations of existing facilities with negligible or no expansion of capacity. Authorization of the construction contract for this project will establish the Board of Directors' independent finding that the project is exempt from CEQA. N:\PESUP \Position Papers \Morales \7253 Award Construction Contract 4 17 2008.doc Page 2 of 7 POSITION PAPER Board Meeting Date: May 1, 2008 Subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS WITH MELLONI CONSTRUCTION, INC. FOR THE CONSTRUCTION OF CONTROL ROOMS MODIFICATIONS, DISTRICT PROJECT NO. 7253 RECOMMENDED BOARD ACTION: Staff recommends the following: 1. Find that the project is exempt from CEQA, and 2. Award a construction contract in the amount of $433,231 for the construction of the Control Rooms Modifications, District Project No. 7253, to Melloni Construction, Inc., the lowest responsive and responsible bidder, and authorize the General Manager to execute the Contract Documents. MTESUP \Position Papers \Morales \7253 Award Construction Contract 4 17 2008.doc Page 3 of 7 L V., MAIN GATE-1. SCALE: 0 250 FEET Central Contra Costa Sanitary District 0 ON SITE 1 POD MAIN CONTROL ROOM lee lufth.. CONTROL ROOMS MODIFICATIONS DISTRICT PROJECT 7253 LOCATION MAP ATTACHMENT 1 Page 4 of 7 ATTACHMENT 2 CONTROL ROOMS MODIFICATIONS DISTRICT PROJECT 7253 SUMMARY OF BIDS PROJECT NO.: 7253 DATE/TIME: MARCH 27,2008/2:00 PM PROJECT NAME: CONTROL ROOMS MODIFICATIONS PROJECT MANAGER: NATHANIEL MORALES PROJECT LOCATION: MARTINEZ, CALIFORNIA ENGINEER EST.: $450,000 NO. BIDDER BID PRICE 1 Melloni Construction, Inc. $433,231 4000 Gateway Road, B1 Bethel Island, CA 94511 PO Box 1357 Brentwood, CA 94513 2 N.E. Carlson Construction, Inc. $433,237 150 Middlefield Court, Suite F Brentwood, CA 94513 3 e.a.Sparacino General Contractors, Inc. $458,620 2506 Via Verde Walnut Creek, CA 94598 4 Aztec Consultants, Inc. $466,258 2021 Omega Road, Suite 200 San Ramon, CA 94583 BIDS OPENED BY /s/ Elaine R. Boehme DATE: March 27, 2008 NAPESUP \Position Papers \Morales \7253 Award Construction Contract 4 17 2008.doc Page 5 of 7 Attachment 3 04/16/2008 13:32 9255160255 NE CARLSON CONST PAGE 02/02 Wednesday, April 16, 2008 Mr. Tad Pilecki Capital Projects Division Manager Central Contra Costa Sanitary District 5019 fmhoff Place Martinez, CA 94553 N. E, Carlson Construction, Inc, 150 Middlefield Cf., Space F Brentwood, CA 94313 -4027 (925) 596 -0253 Fax: (925) 316.0255 www. necedwnconstruction. com License k 478879 RE: Withdrawal of Bid Protest Control Rooms ModiScations Project District Project 7253 Dear Mr. Pilecki: N.E. Carlson Construction, Inc. did not intend to have the Central Contra Costa Sanitary District reject all bids and rebid the entire project, N.E. Carlson Construction, Inc. is hereby unconditionally withdrawing our bid protest for the Control Rooms Modification Project 07253. Melloni Construction should be awarded the contract for their low bid. If you have any questions or need any additional information please call. Sinc941y, Nels E. Carlson President CC: Elaine Boehme, Secretary of the District, CCCSD Mellon Construction Page 6 of 7 H z w 2 a F- F- a 0) z 0 Q V O C� C O J F- z O c.i M N ti O z F- U w N� w a F- F- I -, w F- Q F- w z 0 F- Q: F- N /z V w a 0 m F- U) a N O U C O ++ \ O o \ 0 0 \ 0 OQ Q N co N _ O U 0 O O O O N O M f- LO ti E!4 cc O O co OO C O O Qs O E to 40 qrl 49. Q M �O O O O O O O N I� O O O O O O M w m 1� O O_ O t0 V fA � 40 fA r O O d z =- w N = � w H a to � co �, z w Lo p r. r CL Z O H W E rn= J Q Z O = W .N Z Z \ C U w M N U d p z= 0 N E co ui � - E co •5 N z a N O cn In p p aU H >, s Z ° O O= . N z U w N O w z ° c z 2 O = ��O O tm ° O = w w O Qp _ c C.) � = -1 w o; m a O Zc O-i U U IL p= w O J n. z � is z � m w c3 a F- p z CO) v v a LL v a Z r N M 6 CG r` 0 r` N D_ Central Contra Costa Sanitary District April 24, 2008 TO: HONORABLE MEMBERS OF THE BOARD FROM: JAMES M. KELLY, GENERAL MANAGER e ,,- RUSSELL S. LEAVITT, ENGINEERING ASSI TANT III SUBJECT: CONTRA COSTA LAFCO'S REVIEW OF CCCSD'S SPHERE OF INFLUENCE As reported to the Board at its April 17, 2008 meeting, Contra Costa LAFCO deferred decisions on the Sphere of Influence (SOI) Update for several agencies, including CCCSD. A number of LAFCO commissioners wanted to know if the agencies were interested in having their SOI expanded to be contiguous with the Urban Limit Line. The SOI expansions would require some level of CEQA review which LAFCO wanted the affected agencies to fund. Attached is a map showing in red the areas where CCCSD's SOI could be expanded outward to match the Urban Limit Line. Typically, CCCSD does not proactively seek expansion of its SOI; rather, we wait for property owners /developers to come to us with requests to expand the SOI in combination with an annexation request. At that time, these applicants would provide CCCSD with the appropriate CEQA review documentation to be submitted to LAFCO. In general, staff recommends CCCSD continue this approach and not seek SOI expansion on our own at this time. However, the Board might be interested in pursing a SOI change in the Alhambra Valley area. At the May 1, 2008 Board meeting, staff will make a presentation and solicit Board input on what position staff should take with LAFCO. JMK/RBL:slc cc: Ann Farrell Curt Swanson C: \DOCUME- 1\scrayton \LOCALS -1 \Temp \SOI Expansion Memo.doc Central Contra Costa Sanitary District and Sphere of Influence 9 'v �O V a FS 4 w I s t �.irr A..rll.gNa..OwrOreYf7rrMr INrrrl nl®�rr frr4.rk O1...rr.p UY.r.Nf).Nfyrfrw�f�.11�wa rrr rOrwfiNfilw�Crwr�fr.r�rt.r I�r.M.�rMQY �YY.�M..1 hIrNGWr.Ir..NNf. Y.nr WM .F.w..mt.nn..rwwrdr.s°.i. r.rwfrr.r...rrrror.r.an�. rr�+e. 0 1 2 4 sr+.wn� tir..r�+rrrfrhfr. �.�•.�. nfryrwr'ri�..rrrw r..r.rrrNrr.r.. uwr�i r.y�.r�..w �tN dr4Mfti.r 0� �r.wM WtIMM1M Ylw.rr�. C: \DOCUME- 1\scrayton \LOCALS -1 \Temp \SOI Expansion Memo.doc Agenda Item 9.a.2) Board Meeting of May 1, 2008 Written Announcements: a) District Earth Day Events Summary The District took part in several Earth Day related activities over the course of the past two weeks. The largest event was the Earth Day Festival at the John Muir Historic site in Martinez. More than 1,400 people attended the event. Communication Services staff set up Household Hazardous Waste Collection Facility exhibits and answered questions. As in previous years, one of the most popular activities at the festival was the Polaroid photos taken by Maintenance Crew Leader Don Turk and his daughter Ashley. The photos consist of children and families wearing hardhats and orange vests while holding picks and shovels on a stage replicating a District work site. Household Hazardous Waste staff Jesse Folks and Winston Ingram also hosted an exhibit at the City of Lafayette's Earth Day on April 20, 2008. b) Advertisement of Collection System Operations Department Sewer Service Contract The Collection System Operations Department needs specialized assistance with sewer maintenance work including manhole rehabilitation, crown spraying, smoke testing, trenchless spot repairs, and cleaning. A Request for Proposals (RFP) for a sewer service contract will be advertised on May 2, 2008 and May 8, 2008. The proposals will be opened on May 19, 2008. c) Public Meeting for Lafayette Sewer Renovation (Phase 5), DP 5977 The District will host a public meeting for the Lafayette Sewer Renovation project on Tuesday, May 13, 2008 from 7:00 p.m. to 8:00 p.m. at the Lafayette Community Center's Manzanita Room. This is the fifth phase of sewer renovations in Lafayette. Approximately 12,000 linear feet of 6 -and 8 -inch sewer lines will be replaced in various locations in the City of Lafayette. The project will go out for bid in mid -May with the Bid Opening scheduled for early June. Agenda Item 9.a.2) Board Meeting of May 1, 2008 Additional Written Announcements: d) ABC News Story on Household Hazardous Waste Facility ABC -TV News /Channel 7 came to the Household Hazardous Waste Center on Wednesday, April 30, 2008, for a story on the disposal of CFLs. Reporter Jennifer Olney, who has done other stories about our HHW Facility, interviewed Household Hazardous Waste Technician Loren Staggs, and Communication Services Manager Michael Scahill about CFLs and the District's role in removing them from the environment. The story is expected to air in about a week and Board Members will be notified as soon as we have confirmation. e) Camino Pablo Trunk Sewer Improvement Project Update It was reported previously that District staff would be presenting this project at the May 6, 2008 Orinda City Council Meeting. District staff was informed that the agenda for that meeting is substantial, so the District's presentation has been moved to the May 20th meeting. The public information workshop will still take place on Thursday, May 1St from 7 p.m. to 8 p.m. at the Wagner Ranch School Library in Orinda. f) Martinez Meeting Regarding Alhambra Valley Annexation There will be an Adhoc Committee Meetingk, by invitation only, regarding the Alhambra Valley Annexation on Friday, May 2, 2008 at 3:30 p.m. at Martinez City Hall located at 525 Henrietta Street. Martinez Council Members Lara Delaney and Mike Menesini comprise the committee. Other invitees include Local Agency Formation Commission (LAFCO) Executive Director Lou Ann Texeira, Martinez Assistant City Manager /Community Development Director Karen Majors, three owners of properties outside the Urban Limit Line (Andronis, Rolandelli & Hein), and District Engineering Assistant III Russ Leavitt. At least two of the homeowners were informed by the County that they could not receive water service from the City of Martinez even though they have pre- annexations agreement with Martinez. The purpose of the meeting is to come up with some ideas to rectify this situation and to clean up the oversight in the Urban Limit Line (ULL) and annexation of the properties to Martinez. Environmental Services- Manager Curt Swanson will also be in attendance. Board Members Mario Menesini plans to attend. g) Town of Moraga Hosts May 1St Mayors' Conference The Town of Moraga will host the Mayors' Conference on Thursday, May 1 st, 2008 at Hacienda de Las Flores located at 2100 Donald Drive. The business meeting will start at 6:30 p.m. Assemblyman Mark DeSaulnier is the featured speaker. Board Member Mike McGill and General Manager Jim Kelly will attend. h) Mt. View Sanitary District Public Open House Update As previously report, the Mt. View Sanitary District (MVSD) will hold a public open house on Saturday, May 17, 2008 to commemorate their 85t" anniversary along with other milestone events. The event is scheduled from 10 a.m. to 2 p.m. Since parking is limited, parking will be provided at 1635 Pacheco Boulevard with shuttle buses transporting attendees inside the plant gate. Attendees will have to walk through the concrete tunnel to the Headquarters Building. For speaker and agenda information, refer to the attached agenda. 9 a.ah� Page -2 PEYTON SLOUGH WETLANDS: FORMER TOXIC HOT SPOT NOW WILDLIFE HAVEN Who: Peyton Slough Wetlands Advisory Committee - comprised of industry, local governments, regulatory agencies, environmental groups, and private citizens 'W'here: Mt. View Sanitary District, Martinez Parking ONLY available at 1635 Pacheco Blvd. with free shuttle service to Mt. View Sanitary District. When: Saturday, May 17, 2008 from 10.00 am. to 2:00 pm. Agenda: * Unveiling of the wildlife observation platform * Bird. watching * Marsh tours, discovery walks, and live animal presentations * Free food and beverages * Mt. View Sanitary District plant tours - celebrating their 85' Anniversary * Free children's activities and crafts * Exhibitions Speakers: 10:00 a.m. to 10:45 a.m. * David R. Contreras, District Manager, Mt. View Sanitary District * David P. Maggi, Board president, Mt. View Sanitary District * Honorable Gayle B. Uilkema, Contra Costa County Board. of Supervisors, Supervisor, District 2 * Steve Moore, Board Member, Califomia Regional Water Quality Control Board * Ted Radke, Ward 7 Board Member, Vice - President of the Board, East Bay regional Park District * Alicia Izazraraz, General Manager, Shell Martinez Refinery * Karl Malamud -Roam, Ph.D., Environmental Programs Manager, Contra Costa Mosquito & Vector Control District * Kathleen W. Jennings, Staff Environmental Scientist California Department of Fish and Game, Office of Spill Prevention and Response Cost: Free admission 00 9. d. 6) Central Contra Costa Sanitary District May 1, 2008 TO: HONORABLE MEMBERS OF THE BOARD FROM: ANN E. FARRELL AND JAMES M. KELLY SUBJECT: CALIFORNIA ASSOCIATION OF SANITATION AGENCIES SPRING CONFERENCE — APRIL 23 -26, 2008 The California Association of Sanitation Agencies (CASA) Spring Conference highlights included Water Issues, Air, and Land Issues Forums; a presentation on Lake Tahoe and legislative updates. Slides for most presentations are available. If you would like more information on a presentation, it can be forwarded to you. The following handouts are attached for your information: ➢ CASA Mid -Year Conference Program ➢ Pre - Attendees List One other major issue was CASA's Private Sewer Lateral Task Force, which is chaired by David Williams of East Bay Municipal Utility District. The Task Force has many members, and they will evaluate if CASA should take a position on private laterals, and if so what that position should be. The presentation left the impression that legislation was a likely recommendation, and that the CASA Executive Board would be asked to consider the Task Force recommendation before the August CASA meeting. This presentation sparked a number of comments that voiced concern about legislation, and increased the number of Task Force Members. Staff will track the Task Force's activities and progress, and keep the Board informed. ISSUE FORUMS Air Issues Forum: E. J. Shalaby of West County Wastewater District gave a presentation on their 1 MW Photovoltaic System, which was well received. Land issues Forum: The session focused on recent AP articles that were negative on Biosolids reuse, and the biosolids carbon footprint. Dr. Sally Brown from University of Washington presented a summary that was not favorable for incineration, although the summary did not appear to consider heat recovery, which is practiced here at Central San. Water Issues Forum: The Water Issues Forum focused on storm water programs in southern California and the proposed regulation in the bay area. The southern California programs are routinely accepting dry weather runoff into wastewater treatment plants to reduce the pathogen count at recreational beaches. The Regional Water Quality Control Board for our region is currently working with stakeholders to respond to comments made at a recent hearing. Honorable Members of the Board Page 2 May 1, 2008 LEGISLATIVE MATTERS CASA State Legislative Committee The State Legislative meeting began with a brief discussion by CASA State Lobbyist Michael Dillon on the State budget. As previously reported, budget negotiations are expected to continue well past the June 30th constitutional deadline for passing a budget. A property tax shift is on the table for consideration and is being supported by the Legislative Analyst's Office. CASA, ACWA, CSDA, as well as individual members, are actively lobbying the legislature to oppose this LAO proposal. The Committee had previously met to consider over 40 bills and continued at the April 25th meeting reviewing positions on key bills, and on amended or new bills. Over 30 bills were discussed in some detail. A partial list of the bills discussed is included in the conference program. A new bill that resulted in significant discussion was AB 396 Hernandez which would require public agencies to provide a 2.5% bid preference to contractors that met certain health insurance requirements. The Committee recommended a strongly opposed position due to the administrative difficulties this would generate: AB 2986 Leno was also discussed at length. This is the bill which would require the RWQCB to give treatment plants and collection systems a letter grade, ranging from A to F. The Committee had previously taken a work with author position. Unless the bill is amended, the Committee has now changed its position to oppose because discussions with the author raised additional concerns. The format of the Committee meeting has been changed such that the Committee sits facing the audience in the large meeting room. This setup has made it more difficult to have a detailed discussion about the bills, because there is a need to try to involve the audience and educate them about each bill, instead of focusing on a Committee discussion. Some of the audience commented that they had difficulty following the discussion. This issue will be raised with the Program Committee. CASA Federal Legislative Committee The Federal Legislative update focused on four bills that are currently active where CASA staff is working with the authors to protect members' interests. On the Waters of the U.S. Bill, where there is a danger of the definition of the Waters of the U.S. being expanded such that Clean Water Act jurisdiction is expanded, CASA staff is working to ensure that a wastewater treatment and storage pond exclusion is added to the bill and that groundwater is excluded as well. A bill to further regulate water and wastewater facilities utilizing gaseous chlorine continues to be considered by the House, even though CASA and NACWA have actively lobbied against it. This bill is of no concern to the District, as we converted to ultra violet disinfection many years ago. A bill to Re- authorize the BEACH Act of 2000 is also of concern to those who discharge in sensitive beach areas, as it increases monitoring requirements. Honorable Members of the Board Page 3 May 1, 2008 Finally, the Raw Sewage Overflow Community Right -to Know Act is still being modified to incorporate concerns of the regulated community. CASA continues to communicate with the California delegation about concerns that another layer of notification is being added to the already substantial notification requirements of the State of California. The Committee is also focused on two new priorities, working with Senator Boxer and her staff to educate them on our positions on biosolids land application and on climate change. Senator Boxer has expressed deep concern with the regulation of land application of biosolids. She has also expressed an interest in understanding how climate change will impact wastewater agencies and how we can contribute to the solution. CASA staff will continue working with Senator Boxer to provide information on these and any other issues she expresses interest in. Attachments April 23-26, 2008 Resort at Squaw Creek 9:00 a.m. — 2:30 p.m. Location: Grand Sierra C and D • Accounting Systems for Safety Programs • The Six Steps of the Interactive Process • Employment Law Update for Public Entities ........................................................................ Noon — 5:00 p.m. Location: Lobby Alcove ........................................................................ 2:30 p.m. — 5:00 p.m. F t �, 4t- -i,,o & Cool, P Location: Tinker Knob ........................................................................ 5:30 p.m. — 7:00 p.m. Location: Granite Chief 8:00 a.m. — 4:00 p.m. Location: Lobby Alcove ........... I ..................... I ............... ............. ................... 8:00 a.m. — 9:00 a.m. Location: Sierra Foyer .................................. I ................................................ 9:00a.m.-10:00a.m.- 1,J3 Location: Grand Sierra A and B • Technologies to Address the New Challenges in Our Carbon Conscience World 1. Welcome and introductions Frank Caponi, Los Angeles County Sanitation Districts 2. West County Wastewater District's 1 Mega Watt Solar System Sara Hammes, El Solutions EJ Shalaby, General Manager, West County Wastewater District 3. Masdar City—Abu Dhabi's 'Moon Mission' To Building The World's First Zero Carbon and Zero Waste City Jim Sandoval, CH2M Hill 4. Miscellaneous 5. Adjourn ................................................................................... 10:00 a.m. —10:1 s a.m. P, - � �, 11", ............................................................................. 10:15 a.m. —11:45 a.m. - i. Location: Grand Sierra C and D 1. Welcome and Introductions Chair Wyatt Troxel, Inland Empire Utilities Agency 2. Strategy, Stewardship, and Sustainability: Keeping Pace with Technology Kevin Hardy, Assistant General Manager Encina Wastewater Authority 3. Round Table Open Forum 4. Adjourn .. .......... ... ... I . . ..... I ... .. ... . ...... 10: 15a .m.- 11:45a.m.- 4.3, - �,ers' Total So K Location: Grand Sierra A and B 1. Welcome and Introductions Vice Chair Michael Abramson, Napa Sanitation District 2. Using New Technology: Blogs, Listserv, Survey Monkey, Wiki Training, Pod -Cast and Web Casts Matt Brown, San Diego County Water Authority 3. Building Your Executive Team In The Future Job Market Richard Gerstberger, TAP Resource Development Group 4. Round Table Open Forum 5. Adjourn ........................................... ............................... Noon —1:15 p.m. Conf� ?r�Yit;e U'richeon Location: Alpine Ballroom • President's Welcome and Executive Board Report .................................................... :.............................. 1:30 p.m. — 2:45 p.m. , �a,iQ ISot.0_ci I Ji +. ,tit Location. Grand Sierra A and B 1. Welcome and Introductions Chair Ed McCormick, East Bay Municipal Utility District 2. Biosolids Program Update Greg Kester, CASA Biosolids Program Manager 3. How Large Is Your Agency's Biosolids Carbon Footprint? a. AB 32 and Biosolids — Recent Climate Change Developments in California Nicholas van Aelstyn, Beveridge and Diamond b. Optimizing Your Biosolids Program for Greenhouse Gas Credits Dr. Sally Brown, University of Washington 4. Miscellaneous 5. Adjourn CASA Y'a Ensuring Clean Water for California 3:00p.m.- 4:30p.m.- '.v :11ER Location: Grand Sierra A and B 1. Welcome and Introductions Chair Ben Horenstein , East Bay Municipal Utility District 2. Statewide Pharmaceutical Initiative Jim Colston, Tri-TAC Chair 3. Regulatory Issues Update Roberta Larson, CASA Director of Legal & Regulatory Affairs 4. "To Separate or Not" Stormwater From Wastewater: Review Of The Latest Issues Panel. • Tom Mumley, Assistant Executive Officer, S.F. Regional Water Quality Control Board • Tom B. Meregillano, Orange County Sanitation District • Omar Moghaddam, City of Los Angeles 5. Adjourn :f sd , 7:30 a.m. - 9:00 a.m. .:fat!'+ Location: Alpine Ballroom 8:30 a.m. - 4:00 p.m. R,gI i 1, ,t< <)n Location: Lobby Alcove 8:30 a.m. - 9:30 a.m. Location: Sierra Foyer 9:00 a.m. -12:00 p.m. - FRIDAY MORNING SESSIONS - 9:00 a.m. -10:30 a.m. Location: Grand Sierra A and B 1. Welcome and Introductions Chair Harry Price, Fairfield- Suisun Sewer District 2. Additions to the Agenda 3. Legislative Report - Mike Dillon a. General Comments b. Leadership Changes c. State Budget Discussions 4. Old Business a. Update on LAO Property Tax Shift Proposal b. Status Report on Key Bills: • AB 642 -Wolk: Design Build - Support • AB 983 -Ma: Design Defects - Oppose • AB 1642 - Huffman: IRWMPs - Support • AB 1946 -Nava: Water Quality Enforcement - Oppose • AB 1992 - Devore: Associations: Use of Funds - Oppose • AB 2218 - Gaines: Assessments and Fees - Oppose • AB 2270 - Laird: Recycled Water - Support • AB 2356 - Arambula: Small Communities' Projects - Support • AB 2723 -De LaTorre: Recycled Water- Support/ Amend • AB 2820 - Huffman: Renewable Energy Resources - Support • AB 2900 -La Malfa: Water Quality: Civil Penalties - Work w /author • AB 2986 -Leno: Waste Discharge Requirements - Work w /author • AB 3005 - Jones: Requires Fees Proportionate to Square Footage - Oppose • SB 1165 - Kuehl: Complicates CEQA Process - Oppose • SB 1176 - Perata: Major Changes to SWRCB & Regional Boards - Oppose • SB 1258 - Lowenthal: Graywater Standards - Support • SB 1283 - Harman: Discharged Employees Final Wages - Support • SB 1334- Calderon: Lead Plumbing - Oppose • SB 1395 - Corbett: Lead Plumbing - Support • SB 1558 - Ashburn: RWQCB Income Reductions - Work w /Author • SB 1642 -Yee: Contract Claims: Mediation and Arbitration - Oppose • SB 1698 - Romero: Public Works: Contractor Certification - Oppose 5. New Business a. Reconsideration of Prior Actions: AB 2484 - Caballero: LAFCO Changes - Oppose, seek additional information b. Amended Bills for Discussion 6. Other 7. Next Meeting: May 30, 2008 - Sacramento 8. Adjourn 10:45 a.m. - Noon & Location: Grand Sierra A and B 1. Call to Order and Introductions Chair Sharon Green, Los Angeles County Sanitation Districts 2. Review Agenda and Handouts 3. Legislative Update a. Waters of the U.S. (H.R. 2421, S. 1870) b. Gaseous Chlorine /Inherently Safer Technologies (H.R.5577) c. BEACH Act of 2000 Reauthorization (H. R. 2537/H.R. 909) d. Raw Sewage Overflow Community Right -to -Know Act (H.R.2452/S. 2080) e. Fiscal Year 2009 EPA Appropriations f. Climate Change g. Biosolids 4. CASA Priorities Discussion a. Waters of the U.S. b. Climate Change c. Chemical Facilities Anti - Terrorism Act (IST) d. CSO /SSO Monitoring (H. R. 2452/S. 2080) e. Biosolids 5. Washington Conference Debrief 6. New Business 7. Adjourn Noon -1:00 p.m. - LUNCH - On Your Own Noon -1:00 p.m. . r Location. Papoose Peak 1. Welcome and Introductions Vice Chair Pervaiz Anwar, Brown and Caldwell .Ple ,ise sign ar,� 2. Approvals /Reports a. Approval of January 2008 Meeting Minutes b. Financial Status Report 3. Presentation: What is the Role of the CASA Associates? Kamil Azoury, CASA President, and Mike Dunbar, CASA Past President 4. Topics of Discussion a. Contract Language — White Paper b. Associates assistance developing white papersifact sheets for CASA on sustainability /operations subjects c. Program Planning d, Program Ideas for Associates Meeting at August 08 Conference e. Associates Representation in CASA Committees L State /Federal Legislative Liaison Committees ii. Air Issues Forum iii. Land Issues Forum iv.Water Issues Forum f. Other 5. Adjourn Noon — 4:00 p.m. Location: Emigrant Peak Chair Betty Burnett, South Coast Water District 1:15 p.m. — 4:00 P.M. - GENERAL SESSION Location: Grand Sierra A and B President Kamil S. Azoury, Presiding -1:15 p.m. —1:45 p.m. 'i)az I� -:? ?$ Ca 1'r,C.ti ?n? e0.'i ;3� i'.iit .. ..,:.i.. .:> `or Pervaiz Anwar, P.E. Senior Vice President, Brown and Caldwell Vijay Kumar, P.E., Vice President CH2M HILL - 1:45 p.m. — 2:15 p.m. S. Geoffrey Sch/adow, Ph.D., Director, Tahoe Environmental Research Center at UC Davis - 2:15 p.m. — 2:45 p.m. Task Force Chair David Williams, East Bay Municipal Utility District - 3:00 P.M. — 4:00 p.m. Ken Landau, Assistant Executive Officer, Central Valley Regional Water Quality Control Board Dan Cozad, Consultant, integrated Planning and Management Central Valley Salinity Alternatives for Long -Term Sustainability (CV- SALTS) is an effort to develop and implement a comprehensive salinity management program. This program is to augment the regional board basin planning regulatory effort for salinity. The goal of CV -SALTS is to cooperatively maintain a healthy environment and a good quality of life for all Californians by protecting our most essential and vulnerable resource: WATER. „S 4:15 P.M. — 5:00 p.m. il)i ",j,- -vI.1')I int1!,i1- 1'.1:tcti?ig Location: Monument Peak Chair Paul Bushee, Leucadia Wastewater District 6:00 P.M. — 6:45 p.m. Re( , tk�n Location: Sierra Foyer 6:45 P.M. — 7:30 p.m. ,. ;h Siprs� Oinnar Location: Alpine Ballroom 7:30 p.m. —10:45 p.m. Af'f5r uin .er Location: Alpine Ballroom Sing and Dance with the CASA "Sludge Tones- 7:30 a.m. — 9:00 a.m. Location: Emigrant Peak ... ............................... 8:00 a.m. — 9 :00 a.m. Location: Sierra Foyer 9:00 a.m. —11:00 a.m. Location: Grand Sierra A and B President Kamil S. Azoury presiding CASA's legislative, regulatory and legal experts present the issues impacting California's wastewater community, offering their insight into today's political and regulatory environments and share thoughts on future challenges and opportunities for our industry, followed by a question and answer period. Panel: - Executive Director's Report, Catherine Smith - Biosolids Program Report, Greg Kester - Regulatory Outlook and E igation Report, Roberta Larson - State Legislative Report, Mike Dillon - Washington D.C. Report, Eric Sapirstein CASA Council Meeting Committee Reports: Action Items (see agenda handout) Closing remarks by President Azoury California Association of Sanitation Agencies ACWA Assoc of California Water Agencies NPS Non-Point Source A,Ava;,,I,d N,J ii;e cf;-�� :' 'c "t, Safr ! � [ " C '; APWA American Public Works Association N I'R .'i _\ T 1- M A;,-b(.)rl-,,e Toxic Control OMB Office of Management and Budget AWWA American Water Works Association _'AC` iA PAG Public Advisory Group BOD Biochemical Oxygen Demand PAHs Polyn,icicar Arofn.,tic C 4 ^, (',S C:flif Arniiont Air Ou,,ility stanr lard PCBs PolyChlorinated Biphenyls CalARP Calif Accidental Release Prevention Program PO r'Ns Publicly Cvintd Tre,do-I:ant',Vor'(s CAI B Cdit Air Resci ircos 3oird PPCPS Pharmaceutical and personal Care Products CDFA Calif Dept of Food & Agriculture PSSEP PdifnN',s�,ip for Sound '136- -nce in CDO Cease and Ccs;-A 07 1,)r EnvirorI iental 13_-Iicy CEQA Calif Environmental Quality Act QA/QC Quality Assurance / Quality Control C F.R Code of Ft3der-fl Prag Ragion IX Riqion of EPA (CA. AZ, NV & HI) CMOM Capacity, Management, Operation and Maintenance RFP Request For Proposals ',!B C:1!it sted Vi`as04' Ir.,'n .!,, p,,] nt 81.1-. rd R rM P Risk ncnitPri,,gram CPUC Calif Public Utilities Commission RFQ Request For Qualifications CTR California Toxics Rule RWQCB Regional Water Quality Control Board to , 11 A 11 1/. C 'i � t, _IN�IY 1_1(� AP 14 (' ,� �-,t I,- , CWA Clean Water Act SEP Supplementary Environmental Projects CWARA Clean Water Authority Restoration Act SLAPP Strategic Lawsuit Against Public Participation FA DHS Dept of Health Services SRF State Revolving Fund ,n ., '3 DTSC Dept of Toxic Substances Control SSO Sanitdry Sewer Overflow e. i05 i3d 0.-ijs wd EDW Effluent Dominated Waterbody SWRCB State Water Resources Control Board - EPA Environmental Protection Agency TCLP Federal Toxicity Characteristics Leaching Procedure ESMP Electronic Self-Monitoring Report r. 11a I D 4":- " , d -17 -,, ; _!a A "`, ' :$'i 1rJ . �;O TMDL Total Maximum Daily Load GASB Government Accounting Standards Board 1. A, ! Y ISWP Inland Surface Waters Plan TSO Time Schedule Order 1 LA Load Allocation (non-point sources) UPCCAA Uniform Public Construction Cost Accounting Act LOCC League of California Cities VOCS Volatile Organic Compounds MACT Maximum Achievable Control Technology WDR Waste Discharge Requirements (air controls) WERF Water Environment Research Foundation MGD Million Gallons per Day WESTCAS Western Coalition of Arid States MOU Memorandum of Understanding WLA Waste Load Allocation (point sources) NACWA National Association of Clean Water Agencies WRDA Water Resource Development Act NGOS Non Governmental Organizations WOBEL Water Quality Based Effluent Limitation NOX Nitrogen Oxides WWWIFA Water and Wastewater Infrastructure Financing Agency California Association of Sanitation Agencies Upcoming CASA Conference Meetings 5„ "li,Z +�i}}i (AlIf 1'7 "'� "i1',�: .fir ?)�" l.ofili`.i,;f7:}k: _ x.11 S. Azoury President Jackie Kepke, Associates Chair California Association of Sanitation Agencies Golet Goleta a Sanitary Di strict Hotel Monaco Marriott Harry Price -1" Vice President Betty Burnett, Attorneys Chair 1215 K Street, Suite 2290 Fairfield- Suisun Sewer District Ruben Robles, Awards Chair Sacramento, CA 95814 Ron Young - 2 n, Vice President Tom Selfridge, Budget and Audit Chair 916.446.0388 phone Elsinore Valley Municipal Water District Robert Reid, Bylaws Chair 916.231.2141 fax Tom Selfridge - Secretary- Treasurer Michele McKinney Underwood. Communications Chair Catherine A. Smith, Executive Director Truckee Sanitary District Wyatt Troxel, Directors Chair Michael F Dillon, State Lobbyist Gary Darling - Director -At -Large Kamil S. Azoury, Evaluation Chair Roberta L. Larson, Director of Legal Delta Diablo Sanitation District Sharon Green, Federal Liaison &Legislative Chair and Regulatory Affairs John A. Hoagland - Director -At -Large Keith Lewinger, Managers Chair Eric Sapirstein, Federal Rancho California Water District Legislative Advocate Barbara Hockett - Director -At -Large • Michael Dunbar, Nomination &Advisory Chair Greg Kesler, Biosolids Program Manager Central Contra Costa Sanitary District Paul Bushee, Program Chair Debbie Welch, Executive Assistant and Steve Hogg - Director -At -Large Harry Price, State Legislative Chair Conference Coordinator City of Fresno Joyce Gwidt, Conference Arrangements Chair Kaila Ricci, Conference Staff Wyatt Troxel - Director -At -Large Frank Caponi, Air Issues Forum Chair Justin Lewis, IT Manager Inland Empire Utilities Agency Ed McCormick, Land Issues Forum Chair David Williams - Director -At -Large Ben Horenstein, Water Issues Forum Chair East Bay Municipal Utility District Jim Colston, Tri -TAC Chair Bruce Presser - Director -At -Large The Covello Group Michael Dunbar - Past President South Coast Water District Charlotte Craven - Past President Ventura Regional Sanitation District Upcoming CASA Conference Meetings 5„ "li,Z +�i}}i (AlIf 1'7 "'� "i1',�: .fir ?)�" l.ofili`.i,;f7:}k: Monterey Marriott Hyatt Grand Champions Hotel Monaco Marriott Monterey, CA Indian Wells, CA Washington D.C. Napa, CA t: 831.649.4234 t: 760.341.1000 t: 202.628.7177 t: 707.253.8600 awl California Association of Sanitation Agencies 1215 K Street, Suite 2290 Sacramento, CA 95814 916.446.0388 phone 916.201 2141 fax a California Association of Sanitation Agencies Spring Conference April 23 -26, 2008 Pre- Attendees List Archer Norris Peter McGaw Best Best & Krieger LLP Ann Siprelle BHI Management Consulting Brent and Lynda Ives Black & Veatch James Clark Brown And Caldwell Pervaiz Anwar City of Camarillo Lucia M. McGovern Camarillo Sanitary District Douglas Frost, Jr. Camrosa Water District Al Fox Frank Royer Carmel Area Wastewater District Ken White Carollo Engineers Steve McDonald Carpinteria Sanitary District Jeff Moorhouse CASA Honorary Member Joyce and David Gwidt Richard Luthy Castro Valley Sanitary District Ralph Johnson Roland Williams Central Contra Costa Sanitary District Kent Alm Ann Farrell Barbara Hockett James Kelly Gerald Lucey Mike McGill Central Marin Sanitation Agency Jason Dow Jack Govi CH2M Hill James Sandoval Vijay Kumar Costa Mesa Sanitary District Robert Ooten Arlene Schafer The Covello Group, Inc. Bruce and Trudy Presser Cupertino Sanitary District Bill Bosworth John Gatto Curtis Harrison Wendell Kerr Christopher Lee Steven Machida Richard Tanaka City of Davis Keith Smith Delta Diablo Sanitation District Gary Darling Mary Ann Mason Caroline Quinn Karen Ustin Downey Brand LLP Nicole Granquist California Association of Sanitation Agencies Spring Conference April 23 -26, 2008 Pre - Attendees List Dublin San Ramon Services District Jeffrey Hansen Dave Reyua East Bay Dischargers Authority. William Ward East Bay Municipal Utility District Dennis Diemer Joel Freid Bennett Horenstein i Edward McCormick John Schroeter David Williams East Palo Alto Sanitary District Edrick Haggans Goro Mitchell Bethzabe Yanez Eastern Municipal Water District Claire Harrison El Solutions Sara Hamms Elsinore Valley Municipal Water District Ronald Young EnerTech Environmental Raymond Kearney Fairfield- Suisun Sewer District Rita Arwine Kathy Ilopkins Michael Hudson lJarry and Betsy Price Talyon Sortor Charles Timm City of Fresno Stephen lJogg Goleta Sanitary District Kamil and Diana Azoury Richard Battles John Carter George Emerson John and Cindy Fox Steven Majoewsky HDR Engineering Guillermo Garcia Dave Reardon Inland Empire Utilities Agency Wyatt 'Troxel Integrated Planning and Management Inc. Daniel Cozad Ironhouse Sanitary District Fred Etzel Irvine Ranch Water District Peer and Nancy Swan Jacobs Carter Burgess John Moynier Kennedy /Jenks Consultants Jim Graydon P.E. Las Gallinas Valley Sanitary District Larry Loder Craig K. Murray Mark Williams Las Virgenes Municipal Water District Joseph Bowman Leucadia Wastewater District Paul Bushee Judy l lanson Allan Juliusscn Donald (rusted Elaine Sullivan 4 California Association of Sanitation Agencies Spring Conference April 23 -26, 2008 Pre - Attendees List Liberty Composting, Inc. Drew Kolosky Los Angeles County Sanitation Districts Frank Caponi Sharon Green Meyers Nave Riback Silver `& Wilson Michael Riback Ruthann Ziegler Midway City Sanitary District Grace Epperson Joy Neugebauer Margie Rice Ken Robbins Monterey Regional Water Pollution Control Agency Keith Israel Mt. View Sanitary District Jonathan Adams Stanley Caldwell David Contreras MWH James Stahl Napa Sanitation District Michael Abramson Nossaman, Guthner, et al Jeremv Jungreis Novato Sanitary District Jim Fritz Beverly James William Long George Quesada Ojai Valley Sanitary District Russ and Pat Baggerlv John Correa John Curtis Brenda Krout William Lotts Orange County Sanitation District James Ferryman Michael Moore - Oro Loma Sanitary District" Timothy Becker Michael Cameron Roland Dias Howard Kerr Laython Landis Paul Zolfarelli Potrero Hills Landfill James Dunbar Rancho California Water District John Hoagland Redwine & Sherrill Gilbert Granito Gerry Shoaf City of Richmond Everett Jenkins Mary and Larry Phelps City of Sacramento Gary Reents Sacramento Regional County Sanitation District Terrie Mitchell Ruben Robles Mary Snyder Santa Clara County Sanitation District No. 2 -3 Kathy Kretchmer Sid Nash California Association of Sanitation Agencies Spring Conference April 23 -26, 2008 Pre- Attendees List City of Santa Rosa Miles Ferris Suzanne Rawlings Sewer Authority Mid - Coastside James L. Copeland John F. Foley III Snyder, Cornelius & Hunter Mark Cornelius Martin Snyder Sonoma County Water Agency Tim Anderson Spencer,Bader South Bay Systems Authority Daniel and Lisa Child South Coast Water District Betty Burnett Michael f Dunbar ` Richard Gardner South Tahoe Public Utility District Eric Schafer Southern California Alliance of POTWs` John Pastore Stege Sanitary District Douglas Humphrey Dwight Merrill Alan Miller Tahoe - Truckee Sanitation Agency Marcia Beals Triunfo Sanitation District Jim Acosta Tom Glancy Ron Stark Truckee Sanitary District Tom Selfridge Mike Sullivan Blake Tresan Union Sanitary District Richard Currie Thomas flandley David O'Hara City of Vacaville Dave Tompkins Vallecitos Water District Darrell Gentry Valley Sanitary District Rex Sharp William R. Teague Merritt Wiseman Ventura Regional Sanitation District Charlotte Craven' Dennis Gillette Jim Monahan Jonathan Sharkey Patti Walker John Zaragoza Mark Zirbel West Basin Municipal Water District Gloria Gray and Leonard Tibbs West Bay Sanitary District Anthony Condotti. F.sq. John and Ruby Lomax West County Agency Nathaniel Bates West County Wastewater District Leonard Battaglia Alfred Cabral Alfred Granzella George Schmidt 1;..1. Shalaby California Association of Sanitation Agencies Spring Conference April 23 -26, 2008 Pre - Attendees List West Valley Sanitation District David Baxter Donald and Darlene Burr Charles Kilian Diane McNutt Edward Oyama Robert Reid West Yost Associates Vivian Housen Bruce West Western Municipal Water' District Phil Rosentrater Whitley Burchett & Associates Robert Whitley Meredith Shields Winzler & Kelly Dave Lindow Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: MAY 1, 2008 No.: 10.a. Budget and Finance Type of Action: REVIEW SELF - INSURANCE FUND BUDGET FOR FISCAL YEAR 2008 -09 Subject: REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF - INSURANCE FUND AND APPROVE THE ALLOCATION OF $850,000 TO THE FUND FOR INCLUSION IN THE FISCAL YEAR 2008 -09 OPERATIONS & MAINTENANCE BUDGET Submitted By: initiating Dept. /Div.: Randall M. Musgraves, Director of Administrative /Safety & Risk Management Administration REVIEWED AND RECOMMENDED FOR BOARD ACTION: .� � Al D. Ratclif� �,R. M ra`es K. Alm Za , s M. Keii Ge eral Manager ISSUE: The Self- Insurance Fund (SIF) is to be reviewed each year by the Board of Directors with staff presenting funding recommendations for the upcoming fiscal year. RECOMMENDATION: Receive the fiscal year 2008 -09 SIF Budget and authorize the allocation of $850,000 to the fund from the fiscal year 2008 -09 Operations & Maintenance (O &M) Budget for inclusion in the budget. FINANCIAL IMPACTS: The impact of this action requires the allocation of $850,000 from the fiscal year 2008 -09 O &M Budget to the SIF. ALTERNATIVES /CONSIDERATIONS: The alternatives to this action are to provide less funds than recommended, to not fund the SIF, decrease the fund balance, or to increase the fund balance by transferring more than $850,000. BACKGROUND: The Budget and Finance Committee reviewed this position paper at the April 14, 2008 Committee meeting and recommends approval by the Board. The District has self- insured most of its liability and some of its property risks since July 1, 1986, when the Board approved the establishment of the Self- Insurance Fund. The SIF has effectively funded District losses over its twenty -two year history. In 1994, a new Government Accounting Standards Board Statement No. 10 (GASB -10) set forth requirements on how public agencies must fund their self- insured risks. To assure compliance with GASB -10, the District restructured the SIF into three sub - funds. Each of the three (3) sub -funds was established for funding specific risks. N:\ADMINSUP\ADMIN \POSPAPER \Review SIF budget FY 2008 -09 PP 5- 01- 08.doc Page 1 of 4 POSITION PAPER Board Meeting Date: May 1, 2008 subject. REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF - INSURANCE FUND AND APPROVE THE ALLOCATION OF $850,000 TO THE FUND FOR INCLUSION IN THE FISCAL YEAR 2008 -09 OPERATIONS & MAINTENANCE BUDGET SUB -FUND A: GASB -10 actuarially based risks. These include general liability and automobile liability risks. Under the requirements of GASB -10, risks'that could be actuarially studied must be funded based on an actuarial study to be performed every two years. General liability and automobile liability are readily studied throughout the insurance and self - insurance industry to determine funding levels for these liabilities. The District obtained an actuarial review of its self- insured general liability and automobile liability in February 2007 that projected losses for these risks. The actuary, Advanced Risk Management Techniques (ARM Tech) recommended the Sub -Fund A fiscal year 2007 -2008 reserve for future claims be $629,820 based on insurance industry statistics, the District's actual claims experience and a self insured retention (SIR) of $500,000. Staff has adjusted this level to $900,000 to account for the Brown claim, Kaiser claim and a $1,000,000 SIR. Staff discussed this reserve increase with the Board in the January 2008 Financial Planning and Policy Workshop. Sub -Fund A was established to insure these risks based on the District having a $15,000,000 excess liability policy with a $500,000 SIR in the past and a current $1,000,000 SIR. An actuarial study is required every two years to comply with GASB 10 requirements. The actuarial study was completed by ARM Tech in April 2007. Staff is pursuing an updated actuarial study in light of the two large claims and an increased SIR. Exhibit II reflects a significant claim from Kaiser paid in this fiscal year. Claims are projected to be $950,000 in fiscal year 2007 -2008 due to this claim. The annual average expense for Sub -fund A over the past three fiscal years has been approximately $250,000 (excluding the Brown and Kaiser claims), offset by an average revenue of approximately $35,000 for a net draw down of reserves of $215,000 annually. The budgeted fiscal year 2008 -2009 revenue is $34,000 and cost at $295,000 for an estimated reduction in Sub -Fund C reserves of $261,000. A transfer of $531,180 from Sub -Fund C is necessary in order to increase the reserve to the desired $900,000 level and meet GASB 10 requirement. SUB -FUND B: GASB -10 Non - actuarially -based risks. These include employment - related and pollution - related risks. GASB -10 requires that all potential risks be adequately and soundly funded even though these risks are not actuarially reviewed. An actuarial study was not required for these risks since losses for employment - related and pollution - related risks are often POSITION PAPER Board Meeting Date: May 1, 2008 subject. REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF - INSURANCE FUND AND APPROVE THE ALLOCATION OF $850,000 TO THE FUND FOR INCLUSION IN THE FISCAL YEAR 2008 -09 OPERATIONS & MAINTENANCE BUDGET predicted with less accuracy because these types of cases occur infrequently but may result in extremely high costs and losses. With guidance from risk management and insurance specialists, the District originally established Sub - Fund B at $2,450,000, now adjusted to $2,400,000, to fund employment - related and pollution - related risks based on the purchase of the above mentioned excess liability insurance policy. SUB -FUND C: Non -GASB 10 risks. This Sub -Fund covers all risk management program insurance premiums, potential losses from uninsurable risks, and the costs of initiating claims and lawsuits against others who have damaged the District. The District established this Sub -Fund to finance non -GASB 10 risks under our risk management program. Specific costs include: insurance premiums for a $15,000,000 excess general liability policy; $5,000,000 excess general and $10,000,000 pollution liability policy for the Household Hazardous Waste facility, $1,000,000 employment practices liability with $15,000 retention, and insurance premiums for insuring District properties for fire, explosion, water damage, etc. for losses above $250,000. This Sub -Fund has used its reserves to offset the significant increases in premiums for past years. Staff is anticipating an approximate increase in general liability insurance premiums of no more than five percent and a five percent increase in property insurance premiums. Exhibit IV depicts a revenue transfer of $1,600,000 from the O &M Fund. This reflects the budgeted transfer of $800,000 and the Kaiser claim ($800,000) in fiscal year 2007 -2008. The annual average expense for Sub -fund C over the past three fiscal years has been approximately $500,000 offset by an average revenue of approximately $435,000 for a net decrease of $65,000 to reserves. The budgeted fiscal year 2008 -2009 revenue is $907,500 and cost at $548,000 for an estimated addition to Sub -Fund C reserves of $359,500. However, $531,180 is anticipated to be transferred to Sub -Fund A. Exhibits II, III & IV (attached) present the projected Sub -Fund A, Sub -Fund B and Sub - Fund C fiscal year 2008 -09 budget summary. Exhibit I presents a recent financial history and projection of the SIF and shows the 2008 -09 SIF budget estimated total revenues of $1,018,500 and total expenses of $863,000, increasing the projected fiscal year 2008 -09 total SIF reserves by $155,500 POSITION PAPER Board Meeting Date: May 1, 2008 subject. REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF - INSURANCE FUND AND APPROVE THE ALLOCATION OF $850,000 TO THE FUND FOR INCLUSION IN THE FISCAL YEAR 2008 -09 OPERATIONS & MAINTENANCE BUDGET to $3,877,798 on June 30, 2009. The budgeted revenues include a recommended allocation of $850,000 from the fiscal year 2008 -09 O &M budget to the SIF. RECOMMENDED BOARD ACTION: Receive the proposed fiscal year 2008 -09 Self - Insurance Fund Budget and approve the allocation of $850,000 to the fund for inclusion in the fiscal year 2008 -09 O &M Budget. CENTRAL CONTRA COSTA SANITARY DISTRICT SELF - INSURANCE FUND (SIF) July 1, 2002 - June 30, 2009 Expenses Claims Adjusting Actual Actual Actual Actual Actual Projected Budget Insurance Consulting 2002 -2003 2003 -2004 2004 -2005 2005 -2006 2006 -2007 2007 -2008 2008 -2009 Revenues 157,884 82,122 107,048 198,292 43,013 951,000 260,000 SIF Allocation from O &M Fund 225,000 225,000 250,000 250,000 700,000 1,600,000 850,000 Insurance Allocation from HHW 25,246 28,625 27,758 32,326 33,278 34,000 39,000 Subrogation Recovery 0 50 575 0 0 0 5,000 Interest Income 95,046 61,242 82,028 124,771 162,627 167,500 124,500 Total Revenue 345,292 314,917 360,361 407,097 895,905 1,801,500 1,018,500 Expenses Claims Adjusting 0 0 0 1,217 0 0 1,000 Insurance Consulting 0 0 0 0 0 0 2,000 Loss Payments 157,884 82,122 107,048 198,292 43,013 951,000 260,000 Legal Services 9,321 61,406 69,401 200,568 3,711 51,000 30,000 Technical Services 58,463 62,762 75,860 26,577 27,569 52,000 55,000 Insurance Premiums 406,340 483,413 493,243 485,185 478,269 403,000 515,000 Total Expenses 632,007 689,703 745,552 911,839 552,562 1,457,000 863,000 Revenue Over Expense (286,715) (374,786) (385,191) (504,742) 343,343 344,500 155,500 Reserves Beginning of Year 4,585,889 4,299,174 3,924,388 3,539,197 3,034,455 3,377,798 3,722,298 Revenue over Expense (286,715) (374,786) (385,191) (504,742) 343,343 344,500 155,500 End of Year Reserves 4,299,174 3,924,388 3,539,197 3,034,455 3,377,798 3,722,298 3,877,798 Uncommitted Reserves Actuarial Reserves - GASB 10 (Fund A) 437,360 437,360 881,500 881,500 629,820 629,820 900,000 Non- Actuarial Reserves - GASB 10 (Fund B) 2,450,000 2,450,000 2,450,000 2,152,955 2,152,955 2,400,000 2,400,000 Non -GASB 10 Reserves (Fund C) 1,411,814 1,037,028 207,697 0 595,023 692,478 577,798 Total Reserves 4,299,174 3,924,388 3,539,197 3,034,455 3,377,798 3,722,298 3,877,798 Change in Reserves (286,715) (374,786) (385,191) (504,742) 343,343 344,500 155,500 Exhibit I SELF - INSURANCE FUND Actual 2006 -2007, Projected 2007 -08 and Budget 2008 -2009 SUB -FUND A: GASB -10 ACTUARIALLY BASED RISKS GENERAL LIABILITY AND AUTOMOBILE LIABILITY Actual Projected Budget 2006 -2007 2007 -2008 2008 -2009 Actuarial Reserves - GASB 10 - Beginning of Year $ 881,500 $ 629,820 $ 629,820 Revenues: O &M Subrogation Recovery Interest Total Revenues Expenses: Losses Legal Technical Total Expenses Revenue over Expense Reserves: Transfer (to) /from Sub -Fund C Transfer (to) /from Sub -Fund C Total Reserves Projected End of Year - - 5,000 49,900 57,000 29,000 49,900 57,000 34,000 43,013 950,000 250,000 3,613 50,000 5,000 27,569 50,000 40,000 74,195 1,050,000 295,000 (24,295) (993,000) (261,000) 24,295 993,000 261,000 (251,680) - 270,180 $ 629,820 $ 629,820 $ 900,000 Exhibit 11 SELF - INSURANCE FUND Actual 2006 -2007, Projected 2007 -08 and Budget 2008 -2009 SUB -FUND B: GASB -10 NON - ACTUARIALLY BASED RISKS EMPLOYMENT RELATED AND POLLUTION RISKS Beninninsa Reserves Revenues: O &M Recovery Interest Total Revenues Expenses: Losses Legal Technical Total Expenses Revenue over Expense Reserves: Transfer (to) /from Sub -Fund A Transfer (to) /from Sub -Fund C Total Reserves Projected End of Year Actual Projected Budget 2006 -2007 2007 -2008 2008 -2009 $ 2,152,955 $ 2,152,955 $ 2,400,000 112,727 85,500 77,000 112,727 85,500 77,000 - 1,000 10,000 - 1,000 5,000 - 1,000 5,000 3,000 20,000 112,727 82,500 57,000 (112,727) 164,545 (57,000) $ 2,152,955 $ 2,400,000 $ 2,400,000 Exhibit III SELF - INSURANCE FUND Actual 2006 -2007, Projected 2007 -08 and Budget 2008 -2009 SUB -FUND C: NON GASB -10 RISKS RISK MANAGEMENT PROGRAM INSURANCE PREMIUMS AND COSTS OF INITIATING CLAIMS /LAWSUITS AGAINST OTHERS Beninnina Reserves Revenues: Actual Projected Budget 2006 -2007 2007 -2008 2008 -2009 $ - $ 595,023 $ 692,478 O &M 700,000 1,600,000 850,000 Subrogation Recovery - - - Insurance Recovery from HHW Partners 33,278 34,000 39,000 Interest - 25,000 18,500 Total Revenues 733,278 1,659,000 907,500 Expenses: Insurance Consulting Services - - 2,000 Claims Adjustment - - 1,000 Losses _ _ - Legal 98 - 20,000 Technical - 1,000 10,000 Insurance Premiums 478,269 403,000 515,000 Total Expenses 478,367 404,000 548,000 Revenue over Expense 254,911 1,255,000 359,500 Reserves: Transfer (to) /from Sub -Funds A (24,295) (993,000) (261,000) Transfer (to) /from Sub -Funds A 251,680 (270,180) Transfer (to) /from Sub -Funds B 112,727 (164,545) 57,000 Total Reserves Projected End of Year $ 595,023 $ 692,478 $ 577,798 Exhibit IV r O d v C ct= is m m m N N C � 3 � LL C d N 0 d r N C L 4) N X C W d d 7 V) C d d OC y.. 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Ch 0) 0 ■ C 7 LL .Q 7 N A m N d d N d LL N v C t� L N C d O Cl O O O O 69 O O O O O O O O O O O O O LLj O Ln O LO M N N V- 64 69 69 64 69 64 SJBIIOQ U .a c L. a� Z a� CA a� O m U) Q C� c O z L m O m U) CA Q U to (L) m Z � N v � N LL co cII U Q C O z ■ r C LL O_ m Q Z N N N ca cu w U Q d V C L N d N O d N I.L O O N i� O O O O O O O O O O O O O O O O O O O O O O O Cl O O Cl O O O O O L C-) V O V O � O 0 Ln co M N N T T 69 69 69 64 69 69 Q9 69 69 sionoQ R d R v H LL U c LL a� Z U) O T m m Q C� c O z ■ m 3 O T m U) Q cA N O Cl) w 7 U Q C O z ■ Q c LL O T 'm'^ V/ ,Q V W w r U Q ■ Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2008 No.: 10.b. Budget and Finance Type of Action: AUTHORIZE STAFF TO PREPARE DOCUMENTS TO ESTABLISH AN IRREVOCABLE TRUST subject: AUTHORIZE STAFF TO DEVELOP DOCUMENTS FOR THE ESTABLISHMENT OF A GASB 45 TRUST WITH PUBLIC AGENCY RETIREMENT SERVICES (PARS) Submitted By: Debbie Ratcliff, Controller Initiating Dept /Div.: Administrative / Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION: larq6s M. Kelly, _ General Manager ISSUE: Board authorization is requested for staff to proceed with preparing documents to establish a GASB 45 trust for the purpose of setting aside funds for post - employment benefit obligations. RECOMMENDATION: Staff recommends the Board: Authorize staff to develop GASB 45 trust documents; the documents will be brought back for Board consideration. Prepare contract with PARS for Board consideration. Prepare a financial plan for Board consideration that would include: a) The deposit of $6 million, which has been set by Board action, in the trust for FY 2006 -2007 and FY 2007 -2008. b) The approval of a deposit in the amount of $5.2 million recommended by the actuarial report for FY 2008 -2009 which would be implemented upon approval of the FY 2008 -2009 Budget. c) Authorizing the Budget and Finance Committee to develop an investment policy that would be brought to the Board for consideration, and provide a quarterly review with staff and an annual report to the Board. FINANCIAL IMPACTS: The advantage to setting up a GASB 45 trust is that the District has the potential to earn higher rates of return and additional interest income as the fund balance grows. This higher rate of return will help to reduce the long -term costs of healthcare premiums for retirees. N :\ADMINSUPWDMIN \POSPAPERWpprove Establishment of Irrevocable Trust GASB45 05- 1- 08.doc Page 1 of 3 POSITION PAPER Board Meeting Date: May 1, 2008 Subject. AUTHORIZE STAFF TO DEVELOP DOCUMENTS FOR THE ESTABLISHMENT OF A GASB 45 TRUST WITH PUBLIC AGENCY RETIREMENT SERVICES (PARS) The establishment of a GASB 45 trust with PARS would include fees for administrative services, trustee and investment management services, and additional fees associated with mutual fund investments. All-inclusive fees would be approximately $100,000 for a $10 million dollar investment balance and approximately $350,000 when the trust balance reached $50 million. ALTERNATIVES /CONSIDERATIONS: The Board could consider continuing on a pay - as- you -go basis for post - employment benefit obligations or dedicate District reserves to address the District's financial liability. BACKGROUND: The Budget and Finance Committee was asked by the Board to review the various funding options for post - employment benefits, the pros and cons of establishing a GASB 45 trust, different trust providers and the issue of who should perform the fiduciary responsibilities of Trustee. The Board has been given a summary of the pros and cons of establishing a GASB 45 trust, analysis of providers, and GASB 45 trust options at previous Board meetings. Pros and cons of establishing a trust were reviewed with the Budget & Finance Committee. The Committee concurs with staffs recommendation to contract with PARS because they have specialized exclusively in governmental plan consulting and administration since 1983, and they administer over 700 retirement programs. PARS utilizes Union Bank of California as Trustee, which has the second largest trust division in the state of California. Union Bank has approximately $219 billion of public agency retirement and trust funds under administration. Also, PARS uses HighMark Capital Management (a wholly owned subsidiary of Union Bank) to provide Investment Management Services. The PARS program is flexible with different asset allocation strategies to pick from as well as a complete tailoring of an investment approach should the District choose to design one. PARS does not require a specific format or specific assumptions for an agency's actuarial study and there are no restrictions to transfer to a new trustee should the District become dissatisfied. PARS takes on the responsibility of Trustee utilizing Union Bank of California. The fees for administration, consulting, investment management and custodial services are very reasonable. The Budget & Finance Committee discussed the need for the Board to have review and oversight of the financial activities of the trust fund. The Committee recommends that staff would review the trust fund activity monthly, the Committee quarterly, and the full Board annually. Any significant impacts would be brought to the Board immediately. N:\ ADMINSUP\ADMIN \POSPAPER\Approve Establishment of Irrevocable Trust GASB45 05- 1- 08.doc Page 2 of 3 POSITION PAPER Board Meeting Date: May 1, 2008 Subject AUTHORIZE STAFF TO DEVELOP DOCUMENTS FOR THE ESTABLISHMENT OF A GASB 45 TRUST WITH PUBLIC AGENCY RETIREMENT SERVICES (PARS) Also, the Committee and staff will work with HighMark Capital Management to develop an investment policy for Board consideration. It is now appropriate to request full Board authorization for staff to develop trust documents for Board consideration. These documents would establish a trust after Board approval, how the trust would be funded, and the oversight mechanisms for the trust. RECOMMENDED BOARD ACTION: Staff recommends the following actions: Authorize staff to develop GASB 45 trust documents; the documents will be brought back for Board consideration. Prepare contract with PARS for Board consideration. Prepare a financial plan for Board consideration that would include: a) The deposit of $6 million, which has been set by Board action, in the trust for FY 2006 -2007 and FY 2007 -2008. b) The approval of a deposit in the amount of $5.2 million recommended by the actuarial report for FY 2008 -2009 which would be implemented upon approval of the FY 2008 -2009 Budget. c) Authorizing the Budget and Finance Committee to develop an investment policy that would be brought to the Board for consideration, and provide a quarterly review with staff and an annual report to the Board. N:\ ADMINSUP\ADMIN \POSPAPER\Approve Establishment of Irrevocable Trust GASB45 05- 1- 08.doc Page 3 of 3