HomeMy WebLinkAbout4/16/2009 AGENDA BACKUPCentral Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: April 16, 2009
No.: 3.c. Consent Calendar
Type of Action: ACCEPT CONTRACT WORK /AUTHORIZE FILING OF NOTICE OF
COMPLETION
Subject: ACCEPT THE CONTRACT WORK FOR THE CAMINO PABLO TRUNK
SEWER IMPROVEMENT, DISTRICT PROJECT 5946, AND THE FLUSH KLEEN
FORCE MAIN RENOVATION, DISTRICT PROJECT 5949, AND AUTHORIZE
FILING OF THE NOTICE OF COMPLETION
Submitted By: Initiating Dept. /Div.:
Wesley Adams, Assistant Engineer Engineering / Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
W. Adams
A. k-091 ' cki
An-
A. Farrell
C16
ames M. K ly,
General Marlager
ISSUE: Construction has been completed on the Camino Pablo Trunk Sewer
Improvement, District Project 5946, and the Flush Kleen Force Main Renovation,
District Project 5949, and the work is now ready for acceptance.
RECOMMENDATION: Accept the contract work for the Camino Pablo Trunk Sewer
Improvement, District Project 5946, and the Flush Kleen Force Main Renovation,
District Project 5949, and authorize 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: The Camino Pablo Trunk Sewer Improvement Project renovated
approximately 3,000 linear feet of 6 -, 8 -, 10 -, and 12 -inch sewer lines in Orinda.
Construction of the sewer in easements involved close cooperation with customers for
site access and restoration.
The Flush Kleen Pumping Station is located in the East Bay Municipal Utility District
(EBMUD) potable water watershed, and a high level of reliability of the pumping station
and force main has to be maintained. The pumping station has two parallel force
mains, one 6 inch and one 10 inch. The Flush Kleen Force Main Renovation, District
Project 5949, replaced approximately 1,725 linear feet of both force mains with new
8 -inch diameter PVC pressure pipe.
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POSITION PAPER
Board Meeting Date: April 16, 2009
Subject: ACCEPT THE CONTRACT WORK FOR THE CAMINO PABLO TRUNK
SEWER IMPROVEMENT, DISTRICT PROJECT 5946, AND THE FLUSH KLEEN
FORCE MAIN RENOVATION, DISTRICT PROJECT 5949, AND AUTHORIZE
FILING OF THE NOTICE OF COMPLETION
On June 5, 2008, the Board of Directors authorized the award of a contract for the
construction of the project to California Trenchless, Inc. The Notice to Proceed was
issued on June 12, 2008. The work was substantially completed on December 24,
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 $1,919,000. The budget includes the cost
of engineering design, construction management and inspection, testing services, and
contractor services. 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 Camino Pablo
Trunk Sewer Improvement, District Project 5946, and the Flush Kleen Force Main
Renovation, District Project 5949, and authorize filing of the Notice of Completion.
WPESUMCbradley \POSITION PAPERS\Adams \5946 -5949 Accept Position Paper.doc Page 2 of 2
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: April 16, 2009 No.: 3.d. Consent Calendar
Type of Action: ACCEPT CONTRACT WORK/AUTHORIZE FILING OF THE NOTICE
OF COMPLETION
Subject: ACCEPT THE CONTRACT WORK FOR THE SOUTH ORINDA SEWER
RENOVATIONS, PHASE 3, DISTRICT PROJECT 5985, AND AUTHORIZE FILING
OF THE NOTICE OF COMPLETION
Submitted By: Initiating Dept /Div.:
Nathaniel Morales, Assistant Engineer Engineering / Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
P_ I akA
N. Morales A. Antkowiak ecki A. Farrell ames M. elly,
eneral Manager
ISSUE: Construction has been completed on the South Orinda Sewer Renovations,
Phase 3, District Project 5985, and the work is now ready for acceptance.
RECOMMENDATION: Accept the contract work for the South Orinda Sewer
Renovations, Phase 3, District Project 5985, and authorize 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: The South Orinda Sewer Renovations, Phase 3, project included
renovating approximately 7,000 feet of 6- and 8 -inch pipe by open -cut and pipe- bursting
methods in public rights -of -way in the City of Orinda.
On August 7, 2008, the Board of Directors authorized the award of a contract for the
construction of the project to K. J. Woods Construction, Inc. The Notice to Proceed
was issued on September 12, 2008. The work was substantially completed on
March 31, 2009. The remaining items of work consist of minor punch -list items, which
do not affect the project acceptance.
NAPESUP \Cbradley \POSITION PAPERS \Morales \5985 PP- AcceptContractWork.doc Page 1 of 2
POSITION PAPER
Board Meeting Date: April 16, 2009
subject: ACCEPT THE CONTRACT WORK FOR THE SOUTH ORINDA SEWER
RENOVATIONS, PHASE 3, DISTRICT PROJECT 5985, AND AUTHORIZE FILING
OF THE NOTICE OF COMPLETION
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 $1,750,700. The budget includes the cost
of engineering design, construction management and inspection, testing services, and
contractor services. 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 South Orinda
Sewer Renovations, Phase 3, District Project 5985, and authorize filing of the Notice of
Completion.
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Central Contra Costa Sanitary District
BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: April 16, 2009 No.: 3.e. Consent Calendar
Type of Action: AUTHORIZE AGREEMENT AMENDMENT
subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING
AGREEMENT WITH CAROLLO ENGINEERS FOR THE TREATMENT PLANT
HYDRAULICS EVALUATION, DISTRICT PROJECT 7270
Submitted By: Initiating Dept. /Div.:
Michael J. Penny, Associate Engineer Engineering / Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
L'a l rft/� _J" -
M. Penny B. Than cki A. Farre-W mes M. elly,
a
4eneral Manager
ISSUE: Board of Directors' authorization is required for the General Manager to amend
a professional services agreement beyond staff authority limits.
RECOMMENDATION: Authorize the General Manager to amend an existing
Professional Engineering Services Agreement with Carollo Engineers from $108,207 to
$183, 207 for the Treatment Plant Hydraulics Evaluation, District Project 7270.
FINANCIAL IMPACTS: The additive cost of this amendment, including District staff
time, will be approximately $100,000, bringing the total project cost to $250,000.
ALTERNATIVES /CONSIDERATIONS: An alternative would be to conduct this project
using in -house engineering staff. This project requires specialized expertise, which is
not available at the District at this time.
BACKGROUND: In March 2007, the District retained Carollo Engineers to take prior
individual process hydraulic analyses, integrate current survey and process information,
and develop a single hydraulic model of the entire treatment plant. The hydraulic
model was completed in August 2008. The hydraulic model was used to identify
several potential hydraulic bottlenecks that may need to be addressed in the future to
increase the overall hydraulic capacity of the treatment plant.
After use by Engineering and Plant Operations, staff identified various enhancements
and upgrades to improve the usability and functionality of the model, including the
addition of energy usage. These changes would allow more "what if" scenarios for
operational considerations and include the addition of future treatment plant
expansions. Since Carollo Engineers' performance on the initial scope met staff
expectations, staff has negotiated a $75,000 amendment to the existing Agreement
with Carollo Engineers, bringing the total Agreement amount to $183,207. Total
Project costs are estimated at $250,000.
NAPESUP \Position Papers \Penny \7270 Authorize Agreement 02 PP.doc Page 1 of 2
POSITION PAPER
Board Meeting Date: April 16, 2009
subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING
AGREEMENT WITH CAROLLO ENGINEERS FOR THE TREATMENT PLANT
HYDRAULICS EVALUATION, DISTRICT PROJECT 7270
The Treatment Plant Hydraulics Evaluation is included in the 2008 -2009 Capital
Improvement Budget on pages TP -101 and TP -102. Staff has determined that there
are adequate funds available and that the expenditure requirements are consistent with
the Treatment Plant Program.
Staff has concluded that the proposed agreement amendment is exempt from the
California Environmental Quality Act (CEQA) under District CEQA Guidelines Section
15262 since it involves planning tasks for possible future actions which the District has
not approved, adopted, or funded, and the outcome of these tasks will not have a
legally binding effect on later activities. Approval of this agreement will establish the
Board of Directors' independent finding that this project is exempt from CEQA. The
District will conduct an environmental evaluation of any capital project that is proposed
in the future as a result of these studies to determine the appropriate CEQA compliance
documentation.
RECOMMENDED BOARD ACTION: Authorize the General Manager to amend an
existing Professional Engineering Services Agreement with Carollo Engineers in the
amount of $75,000 for the Treatment Plant Hydraulics Evaluation, District Project 7270.
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Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: April 16, 2009 No.: 3.f. Consent Calendar
Type of Action: ADOPT ARBITRATOR'S RECOMMENDATION
Subject: ACCEPT APPEAL AND ADOPT THE ARBITRATOR'S RECOMMENDATION
IN THE PROPOSED DISCIPLINARY MATTER OF PUMPING STATIONS
SUPERVISOR LEO GONZALEZ
submitted By: Cathryn Freitas, Human Initiating Dept✓Div.: Administration /Human
Resources Manager Resources
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
C. eitas R us aves
James Kelly,
General . anager
ISSUE: In accordance with the disciplinary procedure in the current Memorandum of
Understanding between the District and the Management Support/Confidential Group,
the Board of Directors may adopt, reject, or modify the recommendation of an
appointed neutral third party (arbitrator) in disciplinary matters.
RECOMMENDATION: Adopt the arbitrator's recommendation to rescind the Notice of
Intent to Suspend in the appeal of Pumping Stations Supervisor Leo Gonzalez.
FINANCIAL IMPACTS: None.
ALTERNATIVES /CONSIDERATIONS: Reject or modify the arbitrator's
recommendation.
BACKGROUND: In June 2008, the Board directed staff to secure the services of an
arbitrator in the Step Four appeal of Pumping Stations Supervisor Leo Gonzalez. Mr.
Gonzalez received a Notice of Intent to Suspend for ten days for violation of any lawful
or reasonable regulation or order made and given by an employee's supervisor;
insubordination.
Ms. Bonnie G. Bogue heard the appeal on December 9, 2008, and January 22, 2009,
and issued her decision on April 2, 2009. The arbitrator found evidence of
miscommunication and misunderstanding, and perhaps unreasonable assumptions by
Mr. Gonzalez, but the District failed to meet its burden of proving that Mr. Gonzalez was
intentionally and willfully insubordinate. The arbitrator is recommending rescinding the
Notice of Intent to Suspend. The advisory opinion has been submitted to the Board
under separate cover.
RECOMMENDED BOARD ACTION: Accept the appeal of Pumping Stations
Supervisor Leo Gonzalez and adopt the arbitrator's recommendation to rescind the
Notice of Intent to Suspend.
H: \PERSMISC \Leo Gonzales Position Paper 04- 09.doc
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: APRIL 16, 2009 No.: 3 . ,,,, . Consent Calendar
Type of Action: REVIEW SELF - INSURANCE FUND BUDGET FOR FISCAL YEAR
2009 -10
subject: REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF -
INSURANCE FUND AND APPROVE THE ALLOCATION OF $1,383,000 TO THE
FUND FOR INCLUSION IN THE FISCAL YEAR 2009 -10 OPERATIONS &
MAINTENANCE BUDGET
Submitted By: Initiating Dept. /Div.:
Shari Deutsch, Safety & Risk Administrative /Safety & Risk Management
Management Administrator
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
S. Deutsch A. Wsgraves
"� _
James . Kelly,
"l Genera 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.
The Budget and Finance Committee reviewed this position paper at the April 13, 2009
Committee meeting.
RECOMMENDATION: Receive the fiscal year 2009 -10 SIF Budget and authorize the
allocation of $1,383,000 to the fund from the fiscal year 2009 -10 Operations &
Maintenance (O &M) Budget for inclusion in the budget.
FINANCIAL IMPACTS: The impact of this action requires the allocation of $1,383,000
from the fiscal year 2009 -10 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 $1,383,000.
BACKGROUND: 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-
three year history.
Each year funds are transferred from the O &M Budget to the SIF. According to the ten
year plan, the O &M contribution for fiscal year 2009 -10 is $900,000.
POSITION PAPER
Board Meeting Date: April 16, 2009
subject. REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF -
INSURANCE FUND AND APPROVE THE ALLOCATION OF $1,383,000 TO THE
FUND FOR INCLUSION IN THE FISCAL YEAR 2009 -10 OPERATIONS &
MAINTENANCE BUDGET
In fiscal year 2007 -08 the Board authorized a supplemental transfer of $800,000 from
the O &M fund to the SIF as a reserve for the Kaiser claim. Since the claim was settled
in the same fiscal year for $317,000, the remaining $483,000 was not transferred to the
SIF. However, staff recommends transfer of these pre- authorized funds in fiscal year
2009 -10 to increase the SIF reserve, as shown on Exhibit I.
Fund Allocation
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 to fund specific risks.
SUB -FUND A: GASB -10 Actuarially -Based risks. These include general liability and
automobile liability risks. Under the requirements of GASB -10, risks that can 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 November 2008 that projected losses for these risks. The
actuary, Advanced Risk Management Techniques (ARM Tech) recommended the Sub -
Fund A reserve for fiscal year 2008 -2009 claims be $500,000 based on insurance
industry statistics, the District's actual claims experience and a self insured retention
(SIR) of $1,000,000. However, given the increased likelihood and cost of litigation of
claims paid from this fund, staff recommended increasing the reserve to $1,000,000.
Staff discussed this reserve increase with the Board in the January 2009 Financial
Planning and Policy Workshop. Sub -Fund A is used to self- insure these risks based on
the District having a $15,000,000 excess liability policy and a $1,000,000 SIR.
The average annual expense for Sub -Fund A over the past three fiscal years has been
approximately $345,000, offset by average revenue of approximately $35,000 for an
average draw down of reserves of $305,000 annually. The budgeted revenue for fiscal
year 2009 -10 is $25,000 with expenses of $385,000 for an estimated reduction in Sub -
Fund C reserves of $360,000. A transfer of $610,000 from Sub -Fund C is necessary in
order to increase the reserve to the desired $1,000,000 level.
POSITION PAPER
Board Meeting Date: April 16, 2009
Subject REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF -
INSURANCE FUND AND APPROVE THE ALLOCATION OF $1,383,000 TO THE
FUND FOR INCLUSION IN THE FISCAL YEAR 2009 -10 OPERATIONS &
MAINTENANCE BUDGET
SUB -FUND B: GASB -10 Non - actuarially -based risks. These include employment -
related and pollution - related risks. An actuarial study is not required for these risks
since losses for employment - related and pollution - related risks are often predicted with
less accuracy because these types of cases occur infrequently but may result in
extremely high costs and losses. However, GASB -10 requires that these potential risks
be adequately funded even though they are not actuarially reviewed. 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 an Employment Practices 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 fund 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 liability 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
at least five percent and a ten percent increase in property insurance premiums.
The annual average expense for Sub -Fund C over the past three fiscal years has been
approximately $487,000 offset by average revenue of approximately $560,000 for an
average annual increase of $73,000 to reserves. The budget for fiscal year 2009 -2010
revenue is $1,413,000 and expenses is $598,000 for an estimated addition to Sub -
Fund C reserves of $815,000. However, $555,000 is anticipated to be transferred to
Sub -Fund A.
Exhibits and Charts
Exhibit I presents a recent financial history and projection of the SIF and shows the
2009 -10 SIF budget estimated total revenues of $1,513,000 and total expenses of
POSITION PAPER
Board Meeting Date: April 16, 2009
Subject. REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF -
INSURANCE FUND AND APPROVE THE ALLOCATION OF $1,383,000 TO THE
FUND FOR INCLUSION IN THE FISCAL YEAR 2009 -10 OPERATIONS &
MAINTENANCE BUDGET
$1,003,000, increasing the projected fiscal year 2009 -10 total SIF reserves by $510,000
to $4,135,903 on June 30, 2010. The budgeted revenues include a recommended
allocation of $1,383,000 from the fiscal year 2009 -10 O &M budget to the SIF.
Exhibits II, III & IV present the projected Sub -Fund A, Sub -Fund B and Sub -Fund C
fiscal year 2009 -10 budget summary.
Exhibit IV depicts a revenue transfer of $1,383,000 from the O &M Fund. In fiscal year
2007 -08 the Board authorized a supplemental transfer of $800,000 from the O &M fund
to the SIF as a reserve for the Kaiser claim. Since the claim was settled in the same
fiscal year for $317,000, the remaining $483,000 was not transferred to the SIF.
However, staff recommends these pre- authorized funds be used to augment the
reserves in Sub -Fund A. As a result, the total budgeted O &M transfer includes
$900,000 as projected in the 10 year plan as well as the pre- authorized $483,000 from
the Kaiser reserve.
Chart #1 shows the revenue, expense and reserve history for the entire SIF. Chart #2
shows the history of loss payments and insurance premiums. Chart #3 shows historical
and projected SIF reserves for each Sub -Fund. Chart #4 shows the individual Sub -
Funds and combined SIF historical and projected reserves.
A presentation on the Self- Insurance Fund will be made to the Budget & Finance
Committee on April 13, 2009. If the Committee has any concerns this item will be
removed from the Consent Calendar for discussion. If the Committee agrees with
staff's analysis and recommendations, the item will remain on the Consent Calendar.
RECOMMENDED BOARD ACTION: Receive the proposed fiscal year 2009 -10 Self -
Insurance Fund Budget and approve the allocation of $1,383,000 to the fund for
inclusion in the fiscal year 2009 -10 O &M Budget.
CENTRAL CONTRA COSTA SANITARY DISTRICT
SELF - INSURANCE FUND (SIF)
July 1, 2003 - June 30, 2010
Expenses
Claims Adjusting
Actual
Actual
Actual
Actual
Actual
Projected
Budget
Insurance Consulting
2003 -2004
2004 -2005
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
Revenues
82,122
107,048
198,292
43,013
399,956
280,000
280,000
SIF Allocation from O &M Fund
225,000
250,000
250,000
700,000
1,117,000
850,000
1,383,000
Insurance Allocation from HHW
28,625
27,758
32,326
33,278
29,334
30,000
30,000
Subrogation Recovery
50
575
0
0
14,644
0
0
Interest Income
61,242
82,028
124,771
162,627
159,501
100,000
100,000
Total Revenue
314,917
360,361
407,097
895,905
1,320,479
980,000
1,513,000
Expenses
Claims Adjusting
0
0
1,217
0
0
0
1,000
Insurance Consulting
0
0
0
0
0
3,500
2,000
Loss Payments
82,122
107,048
198,292
43,013
399,956
280,000
280,000
Legal Services
61,406
69,401
200,568
3,711
69,371
240,000
75,000
Technical Services
62,762
75,860
26,577
27,569
75,355
95,000
100,000
Insurance Premiums
483,413
493,243
485,185
478,269
401,292
487,900
545,000
Total Expenses
689,703
745,552
911,839
552,562
945,974
1,106,400
1,003,000
Revenue Over Expense
(374,786)
(385,191)
(504,742)
343,343
374,505
(126,400)
510,000
Reserves
Beginning of Year 4,299,174 3,924,388 3,539,197 3,034,455 3,377,798 3,752,303 3,625,903
Revenue over Expense (374,786) (385,191) (504,742) 343,343 374,505 (126,400) 510,000
End of Year Reserves 3,924,388 3,539,197 3,034,455 3,377,798 3,752,303 3,625,903 4,135,903
Uncommitted Reserves
Actuarial Reserves - GASB 10 (Fund A)
437,360
881,500
881,500
629,820
629,820
750,000
1,000,000
Non- Actuarial Reserves - GASB 10 (Fund B)
2,450,000
2,450,000
2,152,955
2,152,955
2,400,000
2,400,000
2,400,000
Non -GASB 10 Reserves (Fund C)
1,037,028
207,697
0
595,023
722,483
475,903
735,903
Total Reserves
3,924,388
3,539,197
3,034,455
3,377,798
3,752,303
3,625,903
4,135,903
Change in Reserves
(374,786)
(385,191)
(504,742)
343,343
374,505
(126,400)
510,000
Exhibit I
SELF - INSURANCE FUND
Actual 2007 -2008, Projected 2008 -09 and Budget 2009 -2010
SUB -FUND A: GASB -10 ACTUARIALLY BASED RISKS
GENERAL LIABILITY AND AUTOMOBILE LIABILITY
Actual Projected Budget
2007 -2008 2008 -2009 2009 -2010
Actuarial Reserves - GASB 10 - Beginning of Year $ 629,820 $ 629,820 $ 750,000
Revenues:
O &M
Subrogation Recovery
Interest
Total Revenues
Expenses:
Losses
Legal
Technical
Insurance Consulting Services
Total Expenses
Revenue over Expense
Reserves:
Transfer (to) /from Sub -Fund B
Transfer (to) /from Sub -Fund C
Total Reserves Projected End of Year
1,301 - -
29,925 25,000 25,000
31,226 25,000 25,000
387,095 250,000 250,000
42,442 120,000 50,000
75,355 80,000 85,000
0 3,500
504,892 453,500 385,000
(473,666) (428,500) (360,000)
- - 55,000
473,666 548,680 555,000
$ 629,820 $ 750,000 $ 1,000,000
Exhibit 11
SELF - INSURANCE FUND
Actual 2007 -2008, Projected 2008 -09 and Budget 2009 -2010
SUB -FUND B: GASB -10 NON - ACTUARIALLY BASED RISKS
EMPLOYMENT RELATED AND POLLUTION RISKS
Actual Projected Budget
2007 -2008 2008 -2009 2009 -2010
Beginning Reserves $ 2,152,955 $ 2,400,000 $ 2,400,000
Revenues:
O &M - - -
Recovery - - -
Interest 113,995 75,000 75,000
Total Revenues 113,995 75,000 75,000
Expenses:
Losses - 10,000 10,000
Legal - 100,000 5,000
Technical - 5,000 5,000
Total Expenses - 115,000 20,000
Revenue over Expense 113,995 (40,000) 55,000
Reserves:
Transfer (to) /from Sub -Fund A - - (55,000)
Transfer (to) /from Sub -Fund C 133,050 40,000 -
Total Reserves Projected End of Year $ 2,400,000 $ 2,400,000 $ 2,400,000
Exhibit III
SELF - INSURANCE FUND
Actual 2007 -2008, Projected 2008 -09 and Budget 2009 -2010
SUB -FUND C: NON GASB -10 RISKS
RISK MANAGEMENT PROGRAM INSURANCE PREMIUMS AND
COSTS OF INITIATING CLAIMS /LAWSUITS AGAINST OTHERS
Beginning Reserves
Revenues
Actual Projected Budget
2007 -2008 2008 -2009 2009 -2010
$ 595,023 $ 722,483 $ 475,903
O &M 1,117,000 850,000 1,383,000
Subrogation Recovery 13,343 - -
Insurance Recovery from HHW Partners 29,334 30,000 30,000
Interest 15,581 - -
Total Revenues 1,175,258 880,000 1,413,000
Expenses:
Insurance Consulting Services
- -
2,000
Claims Adjustment
- -
1,000
Losses
12,861 20,000
20,000
Legal
26,929 20,000
20,000
Technical
- 10,000
10,000
Insurance Premiums
401,292 487,900
545,000
Total Expenses 441,082 537,900 598,000
Revenue over Expense 734,176 342,100 815,000
Reserves:
Transfer (to) /from Sub -Funds A (473,666) (548,680) (555,000)
Transfer (to) /from Sub -Funds B (133,050) (40,000) -
Total Reserves Projected End of Year $ 722,483 $ 475,903 $ 735,903
Exhibit IV
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Central Contra Costa Sanitary District
April 9. 2009
TO: Budget & Finance Committee
VIA: James M. Kelly, General Manager
FROM: Randall M. Musgraves, Director of Administration Pm
Shari Deutsch, Safety & Risk Management Administrator /=r
SUBJECT: Insurance Renewal Issues for 2009 -10
There are two external factors affecting staff's budget projections for Sub -Fund C in
fiscal year 2009 -10; insurance premiums and the issues surrounding AIG.
Insurance Premiums
Insurance premiums are primarily driven by two factors: loss experience and
investment income. The District has had no liability losses in excess of its self- insured
retention over the last few years, making its individual loss experience equivalent to
zero. According to the Insurance Information Institute, loss experience for all property &
casualty insurance carriers has also remained stable over this period. Unfortunately,
insurance carriers have seen a significant decline in their investment income over the
last year. As a result, staff anticipates an increase in commercial insurance premiums
this year in spite of its superior individual loss experience.
The District purchases its Workers' Compensation coverage from CSRMA, a risk
retention pool of sanitary districts throughout California. The pool retains the first
$750,000 of each claim and purchases excess coverage from the commercial market to
cover losses above that retained limit. CSRMA uses a three year rolling average of loss
costs to determine each member's experience modifier (ex mod), a factor applied to the
pool's base Workers' Compensation rate to calculate each member's annual premium.
Historically the District has maintained a low ex mod but a few severe, higher cost
injuries and an increase in the number of smaller, less costly accidents, over the last
two years have increased its ex mod for 2009 -10. For fiscal year 2009 -10 the District's
ex mod will go from .79 to .97, an increase of 18 %. Staff anticipates this will translate
into a premium increase between 10% and 15 %. To put this increase in some context,
the California Workers Compensation Insurance Rating Bureau is now recommending
state -wide premium increase of 24 %. It is also important to note that the District's ex
mod is still below 1.00. This means its loss experience is still better than the average of
all CSRMA members.
AIG
The District currently has three insurance policies with AIG subsidiary companies;
excess general liability, pollution legal liability, and fiduciary liability. All three of the
subsidiary companies are performing well and have not suffered any erosion of assets
from losses in the AIG financial services units. However, industry experts and many
AIG clients are skeptical that the healthy subsidiary companies offering property and
casualty (p /c) insurance will remain viable if they remain part of the AIG family. AIG
acknowledges that its financial position will only erode further if their p/c clients move
their business to other carriers. As a result, AIG has created AIU Holdings, a new
company under which the p/c insurance companies can continue to operate while
shielding their assets from AIG's financial problems.
At this time it is not clear whether or not segregating the insurance businesses from the
parent company AIG will ensure the viability of those individual companies. Staff will
continue to monitor the situation and has directed its insurance broker, Alliant Insurance
Services, to aggressively market its commercial insurance program for the July 1St
renewal. Staff's renewal recommendations will depend on a number of factors including
price, coverage terms and conditions, policy enhancements and exclusions. Staff will
provide these recommendations in June 2009.
4.a. Hearings
PUBLIC HEARING TO RECEIVE COMMENTS
ON A PROPOSED ORDINANCE TO ADOPT AN UNCODIFIED
"SCHEDULE OF CAPACITY FEES, RATES AND CHARGES"
IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12
SUGGESTED AGENDA
April 16, 2009
Request Staff Report
II. Hearing
A. Open Hearing.
B. Receive comments, if any.
C. Close Hearing.
III. Discussion
IV. Recommended Actions:
A. Adopt an uncodified ordinance replacing Exhibit B adopted pursuant to
Ordinance 249 entitled "Schedule of Capacity Fees, Rates and Charges"
in accordance with District Code Chapter 6.12.
N: \ENVRSEC \Position Papers \Miyamoto- Mills\2009 \4 -16 -09 Capacity Fees - PP- Agenda- Attach- Exhibits\Agenda for Public Hearing
Capacity Fees Draft 04- 16- 09.doc
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: April 16, 2009 No.: 4.a. Hearings
Type of Action: CONDUCT A PUBLIC HEARING; ADOPT ORDINANCE
Subject: CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING AN
UNCODIFIED ORDINANCE REPLACING EXHIBIT B ADOPTED PURSUANT TO
ORDINANCE 249 ENTITLED "SCHEDULE OF CAPACITY FEES, RATES AND
CHARGES" IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12
Submitted By: Initiating Dept. /Div.:
Jarred Miyamoto - Mills, Principal Engineer Engineering /Environmental Services
REVIEWED AND RECOMMEN ED FOR BOARD ACTION:
%M Ix,' J� t�- 101
J. Miyamoto -Mills C. Swanson A. Farrell K. Alm ' ames M. Kelly
eneral Manager
ISSUE: District Code Chapter 6.12 requires that a public hearing be held prior to the
Board of Directors' consideration of an ordinance to adopt an uncodified "Schedule
of Capacity Fees, Rates and Charges."
RECOMMENDATION: Conduct the public hearing. Adopt an uncodified ordinance
replacing Exhibit B adopted pursuant to Ordinance 249 entitled "Schedule of
Capacity Fees, Rates and Charges" in accordance with District Code Chapter 6.12.
FINANCIAL IMPACTS: Staff estimates that the recommended fees would generate
about $400,000 in 2008 -09 in additional Capacity Fee revenue based on connection
of 500 Residential Unit Equivalents (RUE) in the gravity zone and 500 RUE in the
pumped zone.
BACKGROUND: In September 1998, the state enacted SB1760 that requires sewer
connection fees to be based on one of two methods: 1) a buy -in to existing assets or
2) the cost of future facilities expansion. This bill was enthusiastically endorsed and
supported by homebuilders' associations statewide.
The last review of the District's Capacity Fees was completed in 2008. Since 2001,
the method for determination of the fee has been a "buy -in -to -all- assets" approach.
This provides a rational, practical, equitable, and defensible method to calculate the
financial burden of new connections.
The buy -in -to -all- assets approach is preferred primarily due to the "facilities- mature"
status of the District. In this context, facilities- mature means that the value of existing
assets (over $1.6 billion) is many times the value of future facilities expansion
needed to accommodate future customers. Stated differently, most of the facilities
N:\ENVRSEC \Position Papers \Miyamoto- Mills\2009 \4 -16 -09 Capacity Fees - PP- Agenda- Attach - Exhibits \PP Conduct Hearing
Capacity Fees (FINAL) 4 -16 -2009 REV1.doc
POSITION PAPER
Board Meeting Date: April 16, 2009
subject: CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING AN
UNCODIFIED ORDINANCE REPLACING EXHIBIT B ADOPTED PURSUANT TO
ORDINANCE 249 ENTITLED "SCHEDULE OF CAPACITY FEES, RATES AND
CHARGES" IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12
needed to serve new customers have already been built and paid for. As a
consequence, most of the work envisioned in the District's Capital Improvement Plan
is for renovation, replacement or upgrading of facilities to maintain capacity for both
current and prospective customers. Charging a Capacity Fee based on a buy- in -to-
all- assets at the time of connection to the public sewer equalizes the unit investment
of each customer as they move from being a "future" to being a "current" customer.
The proposed Capacity Fees are as follows:
Current Proposed
Fee Category (2008 -09) (2009 -10) % change
Gravity Zone Fee $ 4,923 $ 5,298 7.6%
Pumping Zone Fee $ 6,509 $ 6,949 6.8%
The proposed fee increases result principally from the investment of over $31.5
million in additions, upgrades, renovation, and replacement of capital facilities in
2007 -08.
Staff conducted a coordinated outreach program to inform and solicit input from
interested customers regarding the proposed Capacity Fees and the proposed
Environmental and Development - Related Fees, Rates and Charges. Notices of the
public hearing were posted and published in the Contra Costa Times. In addition,
nearly 400 letter reports including the proposed schedule of rates and charges were
distributed to developers, engineers, architects, contractors, and representatives of
the Home Builders Association of Northern California, the Engineering and Utilities
Contractors' Association, the Associated Building Contractors Golden Gate Chapter,
and others who have requested notice of fee increase proposals. This effort to invite
public comment was pursued to encourage affected customers to provide input
during the rate - setting process. Comments submitted by the public during the review
period will be presented to the Board of Directors at the public hearing.
The proposals were also presented in the General Manager's Report at the Board's
regular meeting on March 19, 2009.
RECOMMENDED BOARD ACTION: Conduct the public hearing. Adopt an
uncodified ordinance replacing Exhibit B adopted pursuant to Ordinance 249 entitled
"Schedule of Capacity Fees, Rates and Charges" in accordance with District Code
Chapter 6.12 (see Attachment 1).
N: \ENVRSEC \Position Papers \Miyamoto- Mills\2009 \4 -16 -09 Capacity Fees - PP- Agenda- Attach - Exhibits \PP Conduct Hearing
Capacity Fees (FINAL) 4 -16 -2009 REV1.doc
Attachment 1
ORDINANCE NO. 254
AN ORDINANCE OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
ADOPTING AN UNCODIFIED
SCHEDULE OF CAPACITY FEES, RATES AND CHARGES
IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12
WHEREAS, substantial study has been conducted regarding the impacts of planned
future development within the District's service area on existing District services and
facilities, along with an analysis of new, improved, or expanded District facilities and
services required or appropriate to serve new users and current users who change the
use of their connected buildings and facilities, and said studies have set forth the
relationship between the added burden imposed by such new users and current users
who change the use of their connected buildings or facilities, and the need for and
estimated cost of District services and facilities occasioned by this added burden; and
WHEREAS, these studies were undertaken by District staff and culminated in
documents that are part of the public record, to wit: the draft Fiscal Years 2009 -10
Capital Improvement Budget & 2009 Capital Improvement Plan, and the Staff Report on
Proposed Capacity Fee Program dated March 2009; and
WHEREAS, it is reasonable and necessary that all users of the District's wastewater
and household hazardous waste collection, treatment, recycling, reuse and disposal
services and facilities, including those temporary users served under Special Discharge
Permits, contribute their appropriate portion of the funding for such District services and
facilities; and
WHEREAS, public meetings for District staff to informally discuss the proposed
Capacity Fee Program with interested customers were held on April 7 and April 8, 2009;
and
WHEREAS, a properly noticed public hearing regarding the proposed Capacity Fee
Program revisions was held on April 16, 2009, and proper notice was also given of the
availability of the documents noted above for public inspection and review prior to said
public hearing; and
WHEREAS, Chapter 6.12 of the District Code provides the enabling authority for the
District to implement the proposed uncodified Schedule of Capacity Fees, Rates and
Charges;
NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary
District does ordain as follows:
Section 1 (To be Uncodified)
The "Schedule of Capacity Fees, Rates and Charges" as set forth in full in Exhibit "A" to
this Ordinance, which exhibit is incorporated in full herein by this reference, is hereby
adopted in uncodified form pursuant to the provisions of District Code Section 6.12.020.
Ordinance No. 254
Page 2 of 2
As of the effective date of this Ordinance, Capacity Fees shall be charged at such rates
and for such categories of users as set forth in said Schedule, and shall remain in effect
until amended or replaced by Ordinance.
Section 2
All ordinances and parts of ordinances in conflict with the provisions of this Ordinance
are repealed. The provisions of this ordinance, insofar as they are substantially the
same as existing provisions relating to the same subject matter shall be construed as
restatements and continuations thereof and not as new enactments. To the extent this
ordinance or any portion or section of this ordinance is determined invalid or
unconstitutional, such portions of Ordinance No. 249 shall remain in effect and such
rates and charges due thereunder for any categories of users shall remain due and
payable as if those portions of Ordinance No. 249 had not been repealed.
With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken,
prior to the effective date of this Ordinance, under any chapter, ordinance, or part of an
ordinance, such chapter, ordinance or part of an ordinance shall be deemed to remain
in full force for the purpose of sustaining any proper suit, action, or other proceedings,
with respect to any such violation, right, liability or appeal.
Section 3
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 July 1, 2009.
PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa
Sanitary District on the 16th day of April 2009, by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
James A. Nejedly
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
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
District Counsel
EXHIBIT "A"
SCHEDULE OF CAPACITY FEES, RATES, AND CHARGES
(Uncodified)
The Capacity Fees, Rates, and Charges listed below were established by Central
Contra Costa Sanitary District Ordinance No. 254, adopted April 16, 2009. These fees,
rates, and charges shall be applied to all new connections or added burdens for which
fees become due and payable on or after July 1, 2009 in accordance with the provisions
of CCCSD Code Chapter 6.12.
Gravity
Capacity Fee
$5,298 / RUE*
Pumpin
Capacity Fee
$1,651 / RUE
*A residential unit equivalent (RUE) is a measure of sewage volume and strength
equivalent to a typical residential household.
Gravity Zone Fee (Zone 1 )
Use
Code
Gravity Capacity Fee
Pumped Zone Fee (Zone 2)
=
Gravity Capacity Fee + Pumping Capacity
Fee
Residential Unit Equivalence (RUE) Factors(')
Number of RUE = Unit of Measure County Multiplied by the RUE Factor
Use
Code
User Group
Unit of
Measure(', 2)
Gravity
Capacity
Fee RUE
Factor
Pumping
Capacity
Fee RUE
Factor
Eligible for
Capacity
Use Charge
Program
(* =Yes)
LU
Single-family residences
Dwelling Unit
1.000
1.000
LA
Multiple - family
residences, apartments
Dwelling Unit
1.000
1.000
LM
Mobile homes
Dwelling Unit
1.000
1.000
LC
Common areas
1,000 sq. ft.
0.200
0.200
AB
Auto body/painting
1,000 sq. ft.
0.432
0.467
AD
Auto dealerships
1,000 sq. ft.
0.432
0.467
AL
Aircraft services
1,000 sq. ft.
0.432
0.467
AR
Auto repair/maintenance
1,000 sq. ft.
0.432
0.467
AS
Service stations
1,000 sq. ft.
0.432
0.467
BT
Transportation services
1,000 sq. ft.
0.432
0.467
AC
Car washes
1,000 sq. ft.
21.127
22.829
AW
Car washes with
recycling
1,000 sq. ft.
3.522
3.805
BB
Barbers /beauty salons /
pet grooming
1,000 sq. ft.
0.725
0.783
BC
Dry cleaners, no laundry
1,000 sq. ft.
0.259
0.279
BR
Retail sales
1,000 sq. ft.
0.259
0.279
BE I
Equipment repair/ repair
services 1
1,000 sq. ft. 1
0.228
0.247
(1) Fees for multi -use buildings shall be determined by considering each use separately.
(2) "Unit -o- measure" shall mean the basic unit that quantifies the degree of use of a particular parcel (e.g.
dwelling unit, square footage). Square footage of an improvement shall be based upon the gross exterior
dimensions of the structure.
Page 1 of 5
SCHEDULE OF CAPACITY FEES, RATES AND CHARGES - CONTINUED
Residential Unit Equivalence (RUE) Factors())
Number of RUE = Unit of Measure County Multiplied by the RUE Factor
Use
Code
User Group
Unit of
Measure(Z)
Gravity
Capacity
Fee RUE
Factor
Pumping
Capacity
Fee RUE
Factor
Eligible for
Capacity
Use Charge
Program
(* =Yes)
BK
Contractors / business
services
1,000 sq. ft.
0.228
0.247
BN
Nurseries / lumberyards
1,000 sq. ft.
0.228
0.247
IL
Light industrial
1,000 sq. ft.
0.228
0.247
BH
Meeting halls / studios
1,000 sq. ft.
0.290
0.313
EA
Auditoriums / theaters
1,000 sq. ft.
0.290
0.313
EC
Cinemas
1,000 sq. ft.
0.290
0.313
EM
Entertainment
1,000 sq. ft.
0.290
0.313
EB
Bowling alleys
1,000 sq. ft.
0.311
0.336
BZ
Miscellaneous commercial
1,000 sq. ft.
0.510
0.551
EG
Golf courses / country clubs
1,000 sq. ft.
1.166
1.391
EH
Health clubs / spas
1,000 sq. ft.
1.166
1.391
ET
Tennis clubs
1,000 sq. ft.
1.166
1.391
IW
Warehouses
1,000 sq. ft.
0.136
0.147
BM
Markets
1,000 sq. ft.
0.556
0.601
BS
Supermarkets
1,000 sq. ft.
0.556
0.601
BX
Shopping centers
1,000 sq. ft.
1.057
1.142
OB
Business offices
1,000 sq. ft.
0.295
0.319
OF
Financial institutions / banks
1,000 sq. ft.
0.295
0.319
OG
Government offices
1,000 sq. ft.
0.295
0.319
OS
Fraternal / service offices
1,000 sq. ft.
0.295
0.319
OM
Medical offices
1,000 sq. ft.
0.637
0.688
OV
Veterinary clinics
1,000 sq. ft.
0.637
0.688
RB
Bakeries (retail)
1,000 sq. ft.
4.061
2.178
RD
Delicatessens
1,000 sq. ft.
1.166
1.294
RN
Bars
1,000 sq. ft.
1.166
1.294
RI
Ice cream parlors
1,000 sq. ft.
1.166
1.294
RY
Yogurt shops
1,000 sq. ft.
1.166
1.294
RS
Restaurants dine -in)
1,000 sq. ft.
4.010
2.738
RT
Restaurants take -out
1,000 sq. ft.
4.010
2.738
RC
Banquet facilities / patio
seating
1,000 sq. ft.
1.166
0.825
BL
Laundromats
1,000 sq. ft.
13.506
14.594
SF
Skilled nursing facilities
1,000 sq. ft.
2.216
2.347
FE
Residential care facilities for
the elderly
1,000 sq. ft.
0.932
0.987
HP
Hospitals
1,000 sq. ft.
2.891
3.124
LH
Hotels / motels
1,000 sq. ft.
1.166
1.272
CH
Churches
1,000 sq. ft.
0.242
0.261
(1) Fees for multi -use buildings shall be determined by considering each use separately.
(2) "Unit -o- measure" shall mean the basic unit that quantifies the degree of use of a particular parcel (e.g.
dwelling unit, square footage). Square footage of an improvement shall be based upon the gross exterior
dimensions of the structure.
Page 2 of 5
SCHEDULE OF CAPACITY FEES, RATES AND CHARGES - CONTINUED
Residential Unit Equivalence (RUE) Factors(')
Number of RUE = Unit of Measure County Multiplied by the RUE Factor
Private Schools (SD, SE, SH, SI, SU)
Eligible for
Gravity
Pumping
Capacity
Capacity
Capacity
Use Charge
Use
Unit of
Fee RUE
Fee RUE
Program
Code
User Group
Measure(Z)
Factor
Factor
(* =Yes)
Schools with cafeteria
and gym / showers
Classroom
0.860
1.000
Schools with gym /
showers and no
cafeteria
Classroom
0.774
0.900
Schools with cafeteria
and no gym / showers
Classroom
0.516
0.600
Schools without
cafeteria or gym /
showers
Classroom
0.430
0.500
(1) Fees for multi -use buildings shall be determined by considering each use separately.
(2) "Unit -o- measure" shall mean the basic unit that quantifies the degree of use of a particular parcel (e.g.
dwelling unit, square footage). Square footage of an improvement shall be based upon the gross exterior
dimensions of the structure
Page 3 of 5
SCHEDULE OF CAPACITY FEES, RATES AND CHARGES — CONTINUED
Special Studies
The fees for Special Studies shall be as established in the Schedule of Environmental
and Development - Related Fees, Rates, and Charges pursuant to the provisions of
Chapter 6.30 of the District Code.
The following user groups require a special study to determine the appropriate capacity
fees. Administrative fees to conduct special studies for these user groups shall be
waived.
Use Code
User Group
BP
Parking lots
CM
Cemeteries / mortuaries
EP
Parks / playgrounds
ES
Swimming pools
EF
Large fitness / athletic clubs
LR
Residence hotels
IE
Electronic industries
IH
Heavy industries
IP
Permitted industries
IR
Laboratories / research facilities
--
Improvements with garbage disposals
--
Public facilities
--
Special billings
--
Utilities
Values for use in the RUE formula in Section 6.12.050(D)(2) shall be:
FLORU
=
200 gpd
BODRU
=
200 m /I
TSSRU
=
215 m /I
A
=
0.69
B
=
0.14
C
=
0.17
Page 4 of 5
SCHEDULE OF CAPACITY FEES, RATES AND CHARGES — CONTINUED
Capacity Use Charge Program
The minimum "initial payment' threshold gravity capacity fee RUE factor shall be 1.166
RUE /per one thousand square feet.
The annual interest rate for calculation of capacity use charges shall be as established
in the Schedule of Environmental and Development - Related Fees, Rates, and Charges
pursuant to the Provisions of Chapter 6.30 of the District Code.
Page 5 of 5
Capacity Charge
Capacity Use
"Initial Payment"
Char a Rates
Pumping
Gravity
Capacity
Current
Capacity Fee
Fee RUE
Year
RUE Factor
Factor
($ /Month
Use
(RUE /1,000
(RUE /1,000
1,000 Sq.
Annual
Code
User Group
Sq. Ft.)
Sq. Ft.)
Ft.)
($ /HCF)
AC
Car washes
1.166
22.829
$ 907.39
$ 4.89
AW
Car washes with recycling
1.166
3.805
$ 107.10
$ 3.46
BL
Laundromats
1.166
14.594
$ 560.95
$ 4.73
HP
Hospitals
1.166
3.124
$ 78.42
$ 3.09
RB
Bakeries retail
1.166
2.178
$ 131.60
$ 7.43
RS
Restaurants dine -in
1.166
2.738
$ 129.28
$ 5.81
RT
Restaurants (paper
1.166
2.738
$ 129.28
$ 5.81
service / no dishwashers
SF
Skilled nursing facilities
1.166
2.347
$ 47.73
$ 2.45
The annual interest rate for calculation of capacity use charges shall be as established
in the Schedule of Environmental and Development - Related Fees, Rates, and Charges
pursuant to the Provisions of Chapter 6.30 of the District Code.
Page 5 of 5
4.b. Hearinas
PUBLIC HEARING TO CONSIDER ADOPTING AN UNCODIFIED ORDINANCE
REPLACING EXHIBIT B ADOPTED PURSUANT TO ORDINANCE 250 ENTITLED
"SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES AND
CHARGES" IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.30
SUGGESTED AGENDA
April 16, 2009
Request Staff Report
II. Hearing
A. Open Hearing.
B. Receive comments, if any.
C. Close Hearing.
III. Discussion
IV. Recommended Actions:
A. Adopt an uncodified ordinance replacing Exhibit B adopted pursuant to
Ordinance 250 entitled "Schedule of Environmental and Development -
Related Rates and Charges" in accordance with District Code Chapter
6.30.
N: \ENVRSEC \Position Papers \Miyamoto- Mills\2009 \4 -16 -09 Environ - Develop Rates & Charges - PP- Agenda- Attach-
ExhibitsWgenda PH re Environ Rates & Charges (Final) 04- 16- 09.doc
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: April 16, 2009 No.: 4.b. Hearings
Type of Action: CONDUCT A PUBLIC HEARING; ADOPT ORDINANCE
Subject: CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING AN
UNCODIFIED ORDINANCE REPLACING EXHIBIT B ADOPTED PURSUANT TO
ORDINANCE 250 ENTITLED "SCHEDULE OF ENVIRONMENTAL AND
DEVELOPMENT - RELATED RATES AND CHARGES" IN ACCORDANCE WITH
DISTRICT CODE CHAPTER 6.30
Submitted By: Initiating Dept. /Div.:
Kurt Darner, Engineering /Environmental Services
Development Services Supervisor
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
ei 4�/
Y1 - I — K. Darner C. Swanson (� _ A. Farrell K. Alm James Kelly,
�,/" General Manager
ISSUE: District Code Chapter 6.30 requires that a public hearing be held prior to the
Board of Directors' consideration of an ordinance to adopt an uncodified "Schedule of
Environmental and Development - Related Rates and Charges."
RECOMMENDATION: Conduct the public hearing. Adopt an uncodified ordinance
replacing Exhibit B adopted pursuant to Ordinance 250 entitled "Schedule of
Environmental and Development - Related Rates and Charges" in accordance with
District Code Chapter 6.30.
FINANCIAL IMPACTS: The proposed fees, rates and charges are designed to recover
the District's direct and indirect labor costs, other operating costs, and administrative
overhead costs incurred in providing environmental and development - related services.
Staff estimates that increased revenue in the fee categories where fee increases are
recommended will likely be balanced by decreased revenue in those fee categories
where reduced fees are recommended.
BACKGROUND: Chapter 6.30 of the District Code includes provisions for the Board to
adopt an uncodified schedule of rates and charges for environmental and development -
related services provided to contractors, developers, septic and grease waste haulers,
and permitted industrial users. These services include permit counter assistance, plan
review, construction inspection for private side sewers and main line extensions,
addition of new sewers, parcels, and permit information to District maps, administration
of Source Control permits and inspections, and septage and grease hauler permitting,
sampling, and treatment.
N:IENVRSEC \Position Papers \Miyamoto - Mills \PP Conduct Public Hearing Rates & Charges (Final) 04- 16- 2009.doc Page 1 of 2
POSITION PAPER
Board Meeting Date: April 16, 2009
subject. CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING AN
UNCODIFIED ORDINANCE REPLACING EXHIBIT B ADOPTED PURSUANT TO
ORDINANCE 250 ENTITLED "SCHEDULE OF ENVIRONMENTAL AND
DEVELOPMENT - RELATED RATES AND CHARGES" IN ACCORDANCE WITH
DISTRICT CODE CHAPTER 6.30
The State of California mandates that revenues not exceed the cost of providing
services. The District's rates and charges are evaluated annually to determine whether
changes are appropriate. This year, staff conducted a comprehensive review of all
rates and charges that included consideration of the District's lower benefit and
overhead rate, a lower vehicle usage charge, a decrease in credit card transaction
costs, as well as changes to the staff time requirements for several of the rates and
charges. These staff time requirements were evaluated in light of data for several prior
years, changes in staffing levels, and the resource requirements of the recently -
completed District Code update, which changes how some services are provided.
Following its review, staff recommends that fifty -three fees remain unchanged, seven
fees be increased between 6.5 to 20.6 percent, nine fees be decreased between 4.8 to
31.7 percent, one new fee for inspection of new manholes and rodding inlets be
established, and the structure for Plan Review of new main sewer extension plans and
Special Studies be modified to include a base fee and an hourly rate to cover staff work
needed beyond a base period. Attachment 1 presents a comparison of the current and
proposed rates and charges.
Staff conducted a coordinated outreach program to inform and solicit input from
interested customers regarding the proposed Capacity Fees and the proposed
Environmental and Development - Related Fees, Rates and Charges. Notices of the
public hearing were posted and published in the Contra Costa Times. In addition,
nearly 400 letter reports including the proposed schedule of rates and charges were
distributed to developers, engineers, architects, contractors and representatives of the
Home Builders Association of Northern California, the Engineering and Utilities
Contractors' Association, the Associated Building Contractors Golden Gate Chapter,
and others who have requested notice of fee increase proposals. This effort to invite
public comment was pursued to encourage affected customers to provide input during
the rate - setting process. Comments submitted by the public during the review period
will be presented to the Board of Directors at the public hearing.
The proposals were also presented in the General Manager's Report at the Board's
regular meeting on March 19, 2009.
RECOMMENDED BOARD ACTION: Conduct the public hearing. Adopt an uncodified
ordinance replacing Exhibit B adopted pursuant to Ordinance 250 entitled "Schedule of
Environmental and Development - Related Rates and Charges" in accordance with
District Code Chapter 6.30 (see Attachment 2).
N: \ENVRSEC \Position Papers \Miyamoto - Mills \PP Conduct Public Hearing Rates & Charges (Final) 04- 16- 2009.doc Page 2 of 2
ATTACHMENT 1
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMPARISON OF CURRENT & PROPOSED RATES & CHARGES FOR 2009 -10
March 2009
Fee Category
Current Fee
I Proposed Fee
% Change
(A) DEVELOPMENT AND PLAN REVIEW
Review of new sewer plans and related documents; review of plans for and processing of residential and commercial
permit applications; installer reimbursement of sewer construction costs from subsequent connectors; identification of right -
of -way conflicts, and interest rates for District programs.
(A -1)
Development Review:
Mainline Plan Review (actual cost):
NEW
Base Fee (minimum charge)
- --
$2,074
NEW
NEW
Each additional hour in excess of base fee
- --
$125
NEW
Special Cut Sheet Review
$200
$200
no change
Manhole only design & plan review
$702
$843
20.1%
Right of Way Document Review - IOD / Sub Map (each):
$579
$579
no change
Right of Way Document Review - No Changes Required
$376
$376
no change
Right of Way document review - Appurtenance (initial):
$539
$539
no change
Appurtenance (each additional)
$199
$199
no change
(A -2)
Application Fees
Basic Application (side sewer work, easement staking)
$89
$89
no change
Existing parcel - new sewer service
$121
$121
no change
New parcel - new sewer service
$196
$196
no change
Commercial Application
$200
$200
no change
Capacity Use Program ($34 increase each year for three years)
$178
$212
1 19.1%
(A -3)
Reimbursement Accounts:
Set -up fee ($70 increase each year for three years)
$736
$806
9.5%
Transaction fee
$166
$139
-16.3%
(A-4)
Commercial Business Plan Review (change in RUE value)
$123
$123
no change
Special Studies
Base fee (4 hours plus misc. costs)
$504
$504
no change
NEW
Each additional hour
- --
$108
NEW
Source Control Review
$190
$190
no change
Grease Variance Review (includes site visit)
$286
$286
no change
Site Collector Plan Check - formerly "Commercial Development Plan Check"
$32 increase each year for 3 ears
$187
$219
17.1%
(A -5)
Private pumping system plan check
$373
$355
-4.8%
Additional Review
$154
$139
-9.7%
Pre - approved Pump Systems
$154
$139
-9.7%
Annexation Fee
$574
$392
-31.7%
(A -7) ISpecial
Approvals
$206
$206
no change
FINAL 2009 -10 R & C Comp zero COLA KD -jm2 03 -26 -2009 Page 1
ATTACHMENT 1
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMPARISON OF CURRENT & PROPOSED RATES & CHARGES FOR 2009 -10
March 2009
Fee Category
Current Fee
I Proposed Fee
% Change
(B) CONSTRUCTION INSPECTION
Inspection of new sewer main construction and new connections and other sewer work on private property (includes TV
inspection when appropriate).
(B -1)
Mainline Inspection (contributed assets):
Base Fee
$678
$599
- 11.7%
Per Foot Charge (in street)
$9.19
$9.81
6.7%
Per Foot Charge (in undeveloped land)
$635
$6.76
6.5%
NEW
I New Manhole, Rodding Inlet
- --
$596
NEW
(B -2)
Inspections by type:
Side Sewer Installation / Repair per 100 feet:
$137
$137
no change
Single Inspection Charge (e.g. sewer connection; encroachment verification;
side sewer cap on property; tap and lateral (new or replacement); air test;
reinspection; homeowner preconstruction inspection)
$137
$137
no change
Manhole tap; lateral abandonment at main; pipe bursting; trash enclosure
w/o trap; side sewer CIPP repair
$274
$274
no change
Manhole Alteration; trash enclosure with trap
$411
$411
no change
New Manhole or Rodding Inlet (private); outside pump installation
$547
$547
no change
Grease / Sand / Oil Interceptor / Trap
$821
$821
no change
(B -3)
Overtime inspection:
First Hour (if responding from off -site)
$85
$85
no change
Every hour thereafter
$58
$58
no change
Weekend /Holiday (New Year's Day, Martin Luther King, President's Day,
Memorial Day, July 4th, Labor Day, Veteran's Day, Thanksgiving, Christmas) - 4 hr.
minimum
$262
$262
no change
L(B -4)
Inspection of non - permitted work (+ avoided charge)
$419
$286
- 31.7%
FINAL 2009 -10 R & C Comp zero COLA KD -jm2 03 -26 -2009 Page 2
ATTACHMENT 1
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMPARISON OF CURRENT & PROPOSED RATES & CHARGES FOR 2009 -10
March 2009
Fee Category
Current Fee
I Proposed Fee
% Change
(C) COLLECTION SYSTEM SERVICES
TV inspection of sewers conducted separate from a construction inspection activity; verification of sewer location and
sewer service connection.
(C -1)
TV Inspection:
Weekday, hourly rate
$187
$187
no change
Minimum Charge (2 hr min)
$376
$376
no change
Overtime -First Hour
$126
$126
no change
Overtime - Each Additional Hour
$105
$105
no change
Overtime - Weekend / Holiday (4 hr min)
$446
$446
no change
(C -2)
Dye test
$322
$257
-20.2%
(C -3)
Collection system repair
Actual Expense
Actual Expense
no change
(C -4)
Cancelled TV Inspection without prior notice
$331
$331
no change
(C -5)
Sewer locating and marking
1 $274
$213
-22.3%
(D) RIGHT -OF -WAY
Establishing right -of -way agreements and resolving conflicts.
(D -1)
Process Quitclaim Deeds
$907
$907
no change
Process Quitclaim Deed - plat and legal by others
$551
$551
no change
(D -2)
Process Real Property Agreement, License, or Easement
Base Fee (minimum charge)
$746
$746
no change
Each Additional Hour (after 2 hours)
$116
$116
no change
(D -3)
Right -of -way Research / Encroachment Resolution Fee
Actual Expense
Actual Expense
no change
(D-4)
Right of Entry / Encroachment Permit Fee (+ $23 each yr over next 3 yrs)
$102
$123
20.6%
(E) MISCELLANEOUS
District services provided for private sewer projects.
(E -1)
Engineering - private sewer projects
Actual Expense
Actual Expense
no change
(E -2)
Soil evaluation - private sewer projects
Actual Expense
Actual Expense
no change
(E -3)
Surveying
Actual Expense
Actual Expense
no change
(E-4)
Minimum annual interest rate for CADS and Capacity Use Program
6.00%
6.00%
no change
Document / Plan Copying Fees
8 1/2" x 11 ", 8 1/2" x 14 "; 11" x 17" (per sheet)
$0.15
$0.15
no change
24" x 36" Plan (per sheet)
$3.00
$3.00
no change
CCCSD Standard Specifications
$20.00
$20.00
no change
FINAL 2009 -10 R & C Comp zero COLA KD -jm2 03 -26 -2009 Page 3
ATTACHMENT 1
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMPARISON OF CURRENT & PROPOSED RATES & CHARGES FOR 2009 -10
March 2009
Fee Category
Current Fee
Proposed Fee
% Change
(F) INDUSTRIAL PERMIT FEES
Permiting and inspection of industries and other commercial dischargers to ensure availability and use of pretreatment
processes.
Base permit fee of
Base permit fee of
(F -1)
Class I Fees
$3,256 + cost of
$3,256 + cost of
no change
District's lab
District's lab
analysis
analysis
Base permit fee of
Base permit fee of
(F -2)
Class II Fees
$3,256 + cost of
$3,256 + cost of
no change
District's lab
District's lab
analysis
analysis
(F -3)
Class III Fees
0
$0
no change
(F -4)
Industrial user permit application fee
0
$0
no change
(F -5)
Special discharge permit application fee (')
No on -site inspection
$65 each
$65 each
no change
On -site inspection
Base fee of $345
Base fee of $345
no change
(G) SEPTAGE DISPOSAL ( ")
Sampling and disposal of septic waste and grease.
(G -1)
Annual permit fee $1,650 $1,650
no change
(G -2)
Residential septic /toilet waste
< 2,000 gallons
$18 + $0.14/gal
$18 + $0.14/gal
no change
> 2,000 gallons
$58 + $0.14/gal
$58 + $0.14/gal
no change
(G -3)
Restaurant grease waste
< 2,000 gallons
$18 + $0.02 /gal
$18 + $0.02 /gal
no change
> 2,000 gallons
$58 + $0.02 /gal
$58 + $0.02 /gal
no change
( ") Additional charges to be billed separately if staff time incurred is above that included in the base fee.
( * *) Other approved waste will be charged at the residential septic and portable toilet waste rate unless actual strength
characteristics are provided.
FINAL 2009 -10 R & C Comp zero COLA KD -jm2 03 -26 -2009 Page 4
Attachment 2
ORDINANCE NO. 255
AN ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
ADOPTING AN UNCODIFIED SCHEDULE OF ENVIRONMENTAL AND
DEVELOPMENT - RELATED RATES AND CHARGES
IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.30
WHEREAS, the Board of Directors of the Central Contra Costa Sanitary District
( CCCSD) finds that CCCSD incurs substantial costs to provide various environmental
and development - related services, such as, but not limited to, administration and
processing of annexations, customer assistance at the permit counter, plan review and
inspection for sewer line installation, alteration, replacement and repair, the inclusion of
new information on District maps, administration and permit inspection related to the
Source Control Program, permitting of septage and grease haulers, and treatment of
grease and septage at the treatment plant; and
WHEREAS, it is necessary to charge customers and other users of CCCSD services to
recover the reasonable cost of providing said services; and
WHEREAS, CCCSD staff has comprehensively analyzed the actual cost of providing
the various environmental and development - related services listed above based on
direct costs, staff costs and overhead for time and effort incurred to provide listed
services; and
WHEREAS, the Board finds that the Schedule of Environmental and Development -
Related Rates and Charges, as reflected in Exhibit "A" to this Ordinance, reasonably
represents the actual costs to provide the services delineated in said Schedule of Rates
and Charges; and
WHEREAS, the CCCSD Board of Directors finds that this action is categorically exempt
from the California Environmental Quality Act (CEQA) pursuant to Section 15273 (a)(1)
and (3) of the State CEQA Guidelines, in that the rates and charges are being charged
merely to reimburse CCCSD for staff costs and expenses,
THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does
hereby ordain as follows:
Section 1 (To be uncodified)
The Schedule of Environmental and Development - Related Rates and Charges as set
forth in full in Exhibit "A" to this Ordinance, which exhibit is hereby incorporated in full
herein by this reference, is hereby adopted in uncodified form pursuant to the provisions
of District Code Chapter 6.30. As of the effective date of this Ordinance, the fees, rates
and charges for each environmental and development - related service shall be as set
forth in said schedule, and shall remain in effect until amended or replaced by
Ordinance.
Ordinance No. 255
Page 2 of 2
Section 2
All ordinances and parts of ordinances in conflict with the provisions of this Ordinance
are repealed. The provisions of this ordinance, insofar as they are substantially the
same as existing provisions relating to the same subject matter shall be construed as
restatements and continuations thereof and not as new enactments. To the extent this
ordinance or any portion or section of this ordinance is determined invalid or
unconstitutional, such portions of Ordinance No. 250 shall remain in effect and such
rates and charges due thereunder for any categories of users shall remain due and
payable as if those portions of Ordinance No. 250 have not been repealed.
With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken,
prior to the effective date of this Ordinance, under any chapter, ordinance, or part of an
ordinance, such chapter, ordinance or part of an ordinance shall be deemed to remain
in full force for the purpose of sustaining any proper suit, action, or other proceedings,
with respect to any such violation, right, liability or appeal.
Section 3
This Ordinance shall be a general regulation of the District and shall be published in the
Contra Costa Times, a newspaper of general circulation, published and circulated within
the Central Contra Costa Sanitary District and shall be effective as of July 1, 2009.
PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa
Sanitary District on the 16th day of April 2009, by the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
COUNTERSIGNED:
Elaine R. Boehme
Secretary of the Central
County of Contra Costa,
Approved as to form:
James A. Nejedly
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Contra Costa Sanitary District
State of California
Kenton L. Alm
Counsel for the District
EXHIBIT A
CENTRAL CONTRA COSTA SANITARY DISTRICT
SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES & CHARGES
(Uncodified)
This schedule of Environmental and Development - Related rates and Charges (to be effective July 1, 2009) was
established by the Central Contra Sanitary District Ordinance No. 255, adopted April 16, 2009.
Fee Category
Amount
(A) DEVELOPMENT AND PLAN REVIEW
Review of new sewer plans and related documents; review of plans for and processing of residential and
commercial permit applications; installer reimbursement of sewer construction costs from subsequent
connectors; identification of right -of -way conflicts; and interest rates for District programs.
(A -1)
Development Review:
Mainline Plan Review (actual cost):
NEW
Base Fee (minimum charge)
$2,074
NEW
Each additional hour in excess of base fee
$125
Special Cut Sheet Review
$200
Manhole only design & plan review
$843
Right of Way Document Review - IOD / Sub Map (each):
$579
Right of Way Document Review - No Changes Required
$376
Right of Way document review - Appurtenance (initial):
$539
Appurtenance (each additional)
$199
(A -2)
Application Fees
Basic Application (side sewer work, easement staking)
$89
Existing parcel - new sewer service
$121
New parcel - new sewer service
$196
Commercial Application
$200
Capacity Use Program ($34 increase each year for three years)
$212
(A -3)
Reimbursement Accounts:
Set -up fee ($70 increase each year for three years)
$806
Transaction fee
$139
(A -4)
Commercial Business Plan Review (change in RUE value)
$123
Special Studies
Base fee (4 hours plus misc. costs)
$504
NEW
Each additional hour
$108
Source Control Review
$190
Grease Variance Review (includes site visit)
$286
Site Collector Plan Check - formerly "Commercial Development Plan Check"
$32 increase each year for 3 ears)
$219
(A -5)
Private pumping system plan check
$355
Additional Review
$139
Pre - approved Pump Systems
$139
Annexation Fee
$392
Ir (A -7)
Special Approvals
$206
Page 1
EXHIBIT A
CENTRAL CONTRA COSTA SANITARY DISTRICT
SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES & CHARGES
(Uncodified)
This schedule of Environmental and Development - Related rates and Charges (to be effective July 1, 2009) was
established by the Central Contra Sanitary District Ordinance No. 255, adopted April 16, 2009.
Fee Category
Amount
(B) CONSTRUCTION INSPECTION
Inspection of new sewer main construction and new connections and other sewer work on private property
(includes TV inspection when appropriate).
(B -1)
Mainline Inspection (contributed assets):
Base Fee
$599
Per Foot Charge (in street)
$9.81
Per Foot Charge (in undeveloped land)
$6.76
NEW
New Manhole, Rodding Inlet
$596
(B -2)
Inspections by type:
Side Sewer Installation / Repair per 100 feet:
$137
Single Inspection Charge (e.g. sewer connection; encroachment verification;
side sewer cap on property; tap and lateral (new or replacement); air test;
reinspection; homeowner preconstruction inspection)
$137
Manhole tap; lateral abandonment at main; pipe bursting; trash enclosure
w/o trap; side sewer CIPP repair
$274
Manhole Alteration; trash enclosure with trap
$411
New Manhole or Rodding Inlet (private); outside pump installation
$547
Grease / Sand / Oil Interceptor / Trap
$821
(B -3)
Overtime inspection:
First Hour (if responding from off -site)
$85
Every hour thereafter
$58
Weekend /Holiday (New Year's Day, Martin Luther King, President's Day,
Memorial Day, July 4th, Labor Day, Veteran's Day, Thanksgiving, Christmas) - 4
hr. minimum
$262
(B -4)
lInspection of non - permitted work (+ avoided charge)
$286
Page 2
EXHIBIT A
CENTRAL CONTRA COSTA SANITARY DISTRICT
SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES & CHARGES
(Uncodified)
This schedule of Environmental and Development - Related rates and Charges (to be effective July 1, 2009) was
established by the Central Contra Sanitary District Ordinance No. 255, adopted April 16, 2009.
Fee Category
Amount
(C) COLLECTION SYSTEM SERVICES
TV inspection of sewers conducted separate from a construction inspection activity; verification of sewer
location and sewer service connection.
(C -1)
TV Inspection:
Weekday, hourly rate
$187
Minimum Charge (2 hr min)
$376
Overtime - First Hour
$126
Overtime - Each Additional Hour
$105
Overtime - Weekend / Holiday (4 hr min)
$446
(C -2)
Dye test
$257
(C -3)
Collection system repair
Actual Expense
(C -4)
Cancelled TV Inspection without prior notice
$331
(C -5)
ISewer locating and marking
$213
(D) RIGHT -OF -WAY
Establishing right -of -way agreements and resolving conflicts.
(D -1)
Process Quitclaim Deeds
$907
Process Quitclaim Deed - plat and legal by others
$551
(D -2)
Process Real Property Agreement, License, or Easement
Base Fee (minimum charge)
$746
Each Additional Hour (after 2 hours)
$116
(D -3)
Right -of -way Research / Encroachment Resolution Fee
Actual Expense
(D -4)
lRight of Entry / Encroachment Permit Fee (+ $23 each yr over next 3 yrs)
$123
(E) MISCELLANEOUS
District services provided for private sewer projects.
(E -1)
Engineering - private sewer projects
Actual Expense
(E -2)
Soil evaluation - private sewer projects
Actual Expense
(E -3)
Surveying
Actual Expense
(E -4)
Minimum annual interest rate for CADs and Capacity Use Program
6.00%
Document / Plan Copying Fees
8 1/2" x 11 "; 8 1/2" x 14 "; 11 " x 17" (per sheet)
$0.15
24" x 36" Plan (per sheet)
$3.00
CCCSD Standard Specifications
$20.00
Page 3
EXHIBIT A
CENTRAL CONTRA COSTA SANITARY DISTRICT
SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES & CHARGES
(Uncodified)
This schedule of Environmental and Development - Related rates and Charges (to be effective July 1, 2009) was
established by the Central Contra Sanitary District Ordinance No. 255, adopted April 16, 2009.
Fee Category
Amount
(F) INDUSTRIAL PERMIT FEES
Permitting and inspection of industries and other commercial dischargers to ensure availability and use of
pretreatment processes.
(F -1)
Class I Fees
Base permit fee of
$3,256 + cost of
District's lab analysis
(F -2)
Class II Fees
Base permit fee of
$3,256 + cost of
District's lab analysis
(F -3)
Class III Fees
$0
(F -4)
Industrial user permit application fee
$0
(F -5)
Special discharge permit application fee ( *)
No on -site inspection
$65 each
On -site inspection
Base fee of $345
(G) SEPTAGE DISPOSAL ('')
Sampling and disposal of septic waste and grease.
(G -1)
Annual permit fee
$1,650
(G -2)
Residential septic /toilet waste
< 2,000 gallons
$18 + $0.14/gal
> 2,000 gallons
$58 + $0.14/gal
(G -3)
Restaurant grease waste
< 2,000 gallons
$18 + $0.02 /gal
> 2,000 gallons
$58 + $0.02 /gal
( ") Additional charges to be billed separately if staff time incurred is above that included in the base fee.
( "') Other approved waste will be charged at the residential septic and portable toilet waste rate unless actual strength
characteristics are provided.
Page 4
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: April 16, 2009 No.: 6.a. Bids and Awards
Type of Action: REJECT ALL BIDS
subject: REJECT ALL BIDS FOR UNDERGROUND UTILITY LOCATING, DISTRICT
BID REQUEST NO. 035599
Submitted By: Initiating Dept. /Div.:
Sasha Mestetsky, Associate Engineer Engineering / Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
estetsky/ T. i A. Farrell K. Alm James M. 14 Ily,
A. Antkowiak General Manager
ISSUE: On March 23, 2009, one (1) sealed bid was received and opened for
Underground Utility Locating, District Bid Request No. 035599. The Board of Directors
must award the contract or reject bids within 50 days of the bid opening.
RECOMMENDATION: Reject all bids received for Underground Utility Locating, District
Bid Request No. 035599.
FINANCIAL IMPACTS: Awarding the bid request with the unbalanced unit prices would
significantly increase ($100,000 plus) the cost of locating services. Rebidding the
locating work or pursuing a different procurement approach, such as a Request for
Proposal, would cost approximately $10,000.
ALTERNATIVES /CONSIDERATIONS: An alternative would be for the Board to hold a
responsiveness hearing at a future Board meeting and determine whether the
underground utility locating work should be awarded to the lowest responsive bidder.
This is not recommended due to the potential financial exposure to the District resulting
from the unbalanced unit price items.
BACKGROUND: The Capital Projects Division needs to determine the location of
approximately 25,000 feet of sanitary sewer mains and 250 side sewers, as well as the
location of other utilities each year as a part of the design of collection system projects.
The purpose of locating the underground utilities is to verify record information. The
results are used to evaluate construction /alignment alternatives during design, with the
goal to minimize change orders and public disruption during construction.
District staff prepared the bid documents for the underground locating work. The
Engineer's estimate for one year's worth of work is $60,000. The bid request was
advertised on March 6 and 11, 2009. One (1) sealed bid for $53,590 was received and
N: \INFRA \Blanket Contracts \Utility Locating \UL 035599 \PP Award Utility Locating.doc Page 1 of 3
POSITION PAPER
Board Meeting Date: April 16, 2009
subject: REJECT ALL BIDS FOR UNDERGROUND UTILITY LOCATING, DISTRICT
BID REQUEST NO. 035599
publicly opened on March 23, 2009. A summary of bids received is shown in
Attachment 1. The Engineering Department conducted a technical and commercial
review of the bid and determined that Exam Technologies Corporation's (Exaro) bid is
unbalanced. Although the total bid price is under the engineer's cost estimate, Exaro's
unbalancing of bid items results in a potential detrimental financial exposure to the
District in excess of $100,000 each year (see Attachment 2).
Although the District in the past has successfully retained underground utility locating
services utilizing the competitive bid process, firms that typically perform underground
utility locating are not familiar with the competitive bidding process. These firms are
typically small and have limited financial resources. The work they perform is
specialized and requires specialized training and judgment to perform properly. Based
on the nature of the work and to promote more interest in the work, staff is considering
issuing a Request for Proposal (RFP) in lieu of rebidding the underground utility locating
work. The RFP approach may result in a better response from locating firms, and
would allow District staff to select a contractor based on qualifications and still have the
ability to negotiate a favorable price to the District.
RECOMMENDED BOARD ACTION: Reject all bids for Underground Utility Locating,
District Bid Request No. 035599.
N: \INFRA \Blanket Contracts \Utility Locating \UL 035599 \PP Award Utility Locating.doc Page 2 of 3
ATTACHMENT 1
UNDERGROUND UTILITY LOCATING
DISTRICT PROJECT 035599
PROJECT NO.: 035599
SUMMARY OF BIDS
DATE: MARCH 23, 2009
PROJECT NAME: UNDERGROUND UTILITY LOCATING
PROJECT LOCATION: VARIOUS CITIES, CALIFORNIA ENGINEER EST.: $60,000
NO.
BIDDER
BID PRICE
1
Exaro Technologies Corporation
$53,590
2
$
3
$
4
$
5
$
6
$
7
$
8
$
9
$
10
$
BIDS OPENED BY /s/ Elaine R. Boehme
DATE March 23, 2009
N: \INFRA \Blanket Contracts \Utility Locating \UL 035599 \PP Award Utility Locating.doc Page 3 of 3
ATTACHMENT 2
UNDERGROUND UTILITY LOCATING
DISTRICT BID REQUEST NO. 035599
Attached is the Schedule of Bid submitted by Exaro Technologies Corporation on
March 23, 2009. The Schedule of Bid is used to establish a unit cost for each type of
activity, and the quantity for each bid item is a guesstimate of how much that bid item
might be used. The Contractor is paid the unit price contained in the Schedule of Bid
times the actual footage. The attached bid schedule is unbalanced for Bid Items 1 and
2 and Bid Items 4 and 5.
For Bid Item 1, the Contractor bid 38 cents per linear foot to locate underground utilities
on heavy streets requiring two flaggers and arrow boards. Under Bid Item 2, the
Contractor bid $3.50 for doing the exact same work on streets with light traffic requiring
little traffic control. In the past, most of the work has been in streets with light traffic.
The Contractor is banking on more work in streets with light traffic and very little work in
streets with heavy traffic, resulting in more compensation to the Contractor to the
detriment of the District. The same analogy is true for Bid Items 4 and 5.
Attachment 2
EXHIBIT C
SCHEDULE OF BID
BIDDER (CONTRACTOR) SUBMITS HEREWITH A UNIT BID PRICE, INCLUDING
ALL APPLICABLE TAXES, FOR THE WORK DESCRIBED HEREIN.
BIDDER UNDERSTANDS THAT PAYMENT IN ACCORDANCE WITH THE BID PRICE
SHALL CONSTITUTE FULL PAYMENT FOR THE WORK SPECIFIED.
FURNISH ALL PLANT, LABOR, MATERIALS, CHEMICALS, TOOLS, SUPPLIES,
EQUIPMENT, TRANSPORTATION, TECHNICAL AND PROFESSIONAL SERVICES,
SUPERVISION, AND PERFORM ALL OPERATIONS NECESSARY AND REQUIRED
TO SATISFACTORILY PERFORM THE WORK SPECIFIED HEREIN: ALL IN
ACCORDANCE WITH THE SPECIFICATIONS CONTAINED HEREIN:
Note: The Quantities listed are for one year's worth of work. The District may extend
the Contract for two additional one -year periods at its sole discretion at the unit prices
set forth in Exhibit C.
UNIT
ITEM DESCRIPTION QUANTITY UNITS PRICE AMOUNT
Locate underground utilities 5,000
(excluding sanitary sewers and side
sewers) on heavy traffic streets
requiring two flaggers and arrow
boards for the lineal foot of street
(LFS) price of (in words)
2 Locate underground utilities 4,000
(excluding sanitary sewers and side
sewers) on light traffic streets
requiring little traffic control for
the lineal foot of street (LFS) price
of (in words) 7 ►✓ce dall4e
3 Locate underground utilities 4,000
(excluding sanitary sewers and side
sewers) in easement areas with
little or no traffic control, traffic
signals, or arrow board for the
lineal foot of street (LFS) price of (in
LFS 01 3 8 I DO 1 oo
LFS 3,5 D o
LFS 6, 2 1 *o, °v
NAINFRA\Blanket Contracts \Utility Locating \UL 035599 \Util Locat 2009 Bid DocFinal.doc Page 27 of 34
ITEM DESCRIPTION
words)
QUANTITY UNITS
4 Locate sanitary sewers on heavy 7,000
traffic streets requiring two
flaggers and arrow boards for the
lineal foot of street (LF) price of (in
words)
5 Locate sanitary sewers on light 5,000
traffic streets or easement areas
requiring little traffic control and
no arrow boards for the lineal foot
of street (LF) price of (in words)
�Tve tiol /G✓s 5 %u�7 Ce•�1
Attachment 2
UNIT
PRICE AMOUNT
LF (�,-S J :050,60
LF 5460 2S, 0.0 O.00
6 Locate side sewers at various 150 EA 2 d, o v 3, 000 ,,
sites with visible cleanouts and
lengths equal to or less than 100
LF, for the unit (EA) price. of (in
words `t' why DoNays -
7 Locate side sewers at various 100
sites without a cleanout and
lengths equal to or less than 100
LF, for the unit (EA) price of (in
words)
EA 2-0.00
Total of Items 1 -7 (in figures) $ S 30 S q 0, co
Total of Items 1 -7 (in words) A✓ee 7—h duSa ►.d Fr ✓e Nu ofv e�
.AJ n e dollars, and (5 cents
NAINFRA\Blanket ContractsWtility Locating \UL 035599 \Ubl Locat 2009 Bid DocFinal.doc Page 28 of 34
Attachment 2
NOTE: Increased or Decreased Quantities
The quantities are usage estimates and will be used for comparison only. If the
total quantity released for each individual item varies by 50 percent or less for
the entire Contract duration, payment will be made for the actual quantities
performed at the Contract unit price. If the quantity variation exceeds 50
percent, the price will be renegotiated upon the prompt notification of either the
DISTRICT or the CONTRACTOR of the intent to renegotiate.
EXAR D T�c1, n o %, e r CooYIP
Company Name
311) skow 72'a
Business Address
Authorized Sig re
Title
3/20/09
Date
NAINFRASanket Contracts\Utility Locating\UL 035599 \Util Locat 2009 Bid DocFinal.doc Page 29 of 34
7.a.2)
Central Contra Costa Sanitary District
April 10, 2009
TO: HONORABLE BOARD OF DIRECTORS
VIA: JAMES M. KELLY, GENERAL MANAGER
ANN E. FARRELL, DIRECTOR OF ENGINEERING
CURTIS W. SWANSON, ENVIRONMENTAL SERVICES DIVISION
MANAGER
FROM: GAIL CHESLER
SUBJECT: POTENTIAL CASA LEGISLATIVE INITIATIVE TO REQUIRE
COLLECTION SYSTEMS AGENCIES TO PASS ORDINANCES TO
REQUIRE PROPERTY OWNERS TO MAINTAIN THEIR PRIVATE
SEWER LATERALS
At the April CASA Conference (April 29 -May 2), the CASA Private Sewer Lateral (PSL)
Task Force will present the results of their work thus far. Their focus has been to
investigate sponsoring legislation to require collection and treatment agencies to pass
ordinances requiring property owners to inspect and maintain their private sewer
laterals, if the agencies do not or cannot opt out of the inspection program. The
inspection would likely be at or near the close of escrow. Legislation of this type is
strongly supported by the Environmental Protection Agency and the State Water
Resources Control Board; similar requirements have been imposed in sanitary sewer
overflow settlement agreements between collection agencies and parties suing
agencies over sanitary sewer overflows. Part of the purpose of the presentation is to
gauge if CASA members want to sponsor legislation or not.
At the April 16, 2009 Board meeting, the current status of the work of this task force will
be presented. Work to date includes:
Two surveys: the first was to determine CASA members' interest in sponsoring
such legislation. The second was of the CASA Attorneys to determine whether
most agencies have this authority already.
Draft outreach materials have been developed.
A tentative schedule has been developed including continuing outreach to
sanitation agencies and the League of Cities. The schedule is based on
introducing legislation next fall.
It is understood that this effort would be shelved if CASA members do not want to
sponsor the legislation. The next conference call of task force participants will be 9 -10
am on April 16, 2009. 1 will be participating. I have represented the District's position
as strongly opposing the legislation, as we do not have excess overflows, or excess wet
weather flow, and have the authority to require the inspections if inspections were
needed.
P: \Public \PLANNING \GAIL \0_Julie \CASA_proposed legislation for PSLs - 4- 9- 09.doc
7.a.1
CSOD Administration,
Crew, and Warehouse
Facility DP 8208
Project Update
April 16, 2009
Central Contra Costa
Sanitary District
}
CSO PROJECT SITE
1
Project Schedule
Complete plans and specifications
August 2009
City Plan Check for Site Development
May - August 2009
Permit and Building Permit
Bidding/Award of Construction
August -
Contract*
September 2009
Move CSO Staff to Martinez **
August -
September 2009
Construction
October 2009 -
April 2011
Occupancy of New Building
April - May 2011
Assumes bidding in parallel with second plan review
Detailed analysis is underway
Permit Review Process
• 2 Core permits
- Site Development Permit (outside Bldg footprint)
- Building Permit (w /in Bldg footprint)
• Site Development Permit
- Onsite grading and drainage
- Retaining Wall
- R/W Encroachment Permit
- Plans reviewed by City Staff
2
Permit Review Process
• Building Permit
- Structure, Plumbing, Electrical, Mechanical
- Demolition Permit
- Source Reduction /Recycling Plan
- Plans may be reviewed by consultants
• Total Estimated Fees $500,000
Staff Relocation
Advantages
• Reduce conflicts with construction
• Increase Contractor efficiency
• Reduce construction duration by
eliminating phasing
• Reduce construction costs ??
• Avoid disruption to CSO
V*"
--SD
3
C.'619.50 Staff Relocation
Disadvantages
• Moving
- Mitigation: Move after monthly scheduled
cleaning work is complete.
• Increased travel time to some areas
- Mitigation: Leaving crew at the vehicle
maintenance shop
Other Issues
• Hazardous Material
- Asbestos
- Lead paint
• Coordination w/ others
- PG &E, EBMUD
- Fire Department
• Construction Inspection
- Building specialty
AWNEWOV�4M
Questions?
Item 7.a.2)
CASA's possible PSL legislative initiative
(to be discussed at the Spring CASA meeting)
Mandate collection system agencies
to require private sewer lateral
inspection and repair
at point of sale
Gail Chesler - April 16, 2009
Who's driving the effort?
Agencies who have I &I issues and do not wish to
implement local private lateral inspection and
repair programs, even though they have the
authority
CASA task force steps thus far
Survey of the membership
Survey of the attorneys
Develop timeline and outreach materials
and draft legislation
What did the CASA membership say?
Strongly support a PSL program - 27%
+ Somewhat support - 41%
*> Undecided - 9%
* Somewhat oppose - 10%
* Strongly oppose - 13%
Possible ramifications for CCCSD
We have no wet weather overflows /I&I issues due
to significant capital investment
CCCSD resources to carry out such a required
program - 6 FTEs + associated infrastructure
+ Cost to the ratepayers to comply with a required
program -- inspection + possible repair
Timeline of process
,* Next Task Force discussion - April 30th
+ Presentation to CASA Membership - May 1st
CASA Board Meeting - decision to "go public" or
not - May 2nd
• November Board Retreat - )�
"thumbs up or down"
3
Staff requests Board input...
Options include...
> Work with CASA to strengthen the opt out
language, or
s Oppose any such program
Need to send a letter to the CASA Board by the April
CASA meeting stating the CCCSD Board position
4
Agenda Item 7.a.3)
Board Meeting of April 16, 2009
Written Announcements:
Board Follow -Up Requests /Updates
a) Status of Second Living Unit Capacity Fees Owed by Alan
Schurr
On March 5, 2009, Mr. Alan Schurr appealed a staff decision that sewer
capacity fees are owed for a new structure being constructed on his
property at 2156 Granite Drive in Alamo. District staff, along with Contra
Costa County, categorized the new structure as a second living unit. Mr.
Schurr owes the District a capacity fee of $4,923 plus the $311 annual
Sewer Service Charge. The Board upheld the staff decision and further
directed staff to arrange a reasonable payment plan with Mr. Schurr.
In addition to paying all fees owed now, staff has proposed two payment
schedules for Mr. Schurr's consideration. If Mr. Schurr elects to pay over
time, staff will prepare a promissory note, which will require Board
approval for the District to record with the County Clerk.
Settled Legal Issues Update
b) KB Home Settlement Payment
KB Home paid $100,000 to settle an issue related to underpayment of
capacity and sewer reimbursement fees related to their Monterosso
Subdivision in Danville. The check from KB Home has cleared and the
funds are on deposit in the District bank account. Staff will process the
payments of reimbursement fees to the Town of Danville and other sewer
installers.
General Updates
c) District Email Problem
The GroupWise network server had a hardware failure over the April 3rd
weekend. The email system went down and emails were not received
until service was restored on Monday, April 6, 2009, at approximately 1:30
p.m. Emails were delivered when the system was restored to service.
The hardware failure was an entirely separate problem than problems that
occurred several weeks ago with the GroupWise software. Staff is looking
at how to increase our email and website reliability.
d) District Website Problem
Staff discovered on Tuesday, March 30, 2009, that the District website
was not automatically posting new Agendas, Action Summaries, and
Minutes. As a temporary fix, the documents were manually posted to the
website on Monday, April 6, 2009. The failure was due to a failed switch
module (hardware failure); the switch was replaced and the system
returned to automated posting on Friday, April 10, 2009.
Bid Announcement Project Related Updates
e) Headworks and Mechanical Shop Roof Replacements,
DP 7211
The Headworks and Mechanical Shop Roof Replacements Project will
rehabilitate both roofs to restore water - tightness. The mechanical shop/
warehouse roof will be rehabilitated by replacing panels, performing
cleaning, and applying a new protective coating to restore water - tightness.
The area around the building has been exposed to hypochlorite mist from
the Odor Control Units which has caused pre- mature corrosion. Flashing
will be replaced; other flashing and metal -work re- coated; and one
penthouse roof will be replaced using fiberglass- reinforced plastic panels
that will not corrode from the hypochlorite.
This project will be advertised on April 21 and 27, 2009. The bids will be
opened on May 11, 2009. The construction cost is currently estimated at
$150,000. More information will be presented when the Board is asked to
approve the construction contract on the May 21St Board Meeting.
Central Contra Costa Sanitary District
Board Meeting
April 16, 2009
Board Member McGill
Item 7.d.1)
FUTURE MEETINGS AND CONFERENCES WITH PAID
EXPENSES AND /OR STIPEND
Will attend the CASA Conference, Napa
April 29 to May 2, 2009
Will attend the Mayors' Conference
May 7, 2009
Future Committee Meetings:
Outreach, May 6, 2009
MEETINGS AND CONFERENCES THAT EXPENSES
AND /OR STIPEND WAS PAID
Committee Meetings
Recycled Water April 14, 2009
Attended the Mayors' Conference
April 2, 2009, Walnut Creek
Presentation regarding Union Pacific and Port of Oakland
Container Shipping
Item 7.d.2 Announcements
Attended CCCSD Staff Presentation regarding certain Capital
Projects
April 6, 2009
Met CCWD Board President, Vice President and General
Manager with CCCSD President and General Manager
April 7, 2009
Attended Contra Costa Council Land Use Task Force Meeting
April 8, 2009
Attended CBIA Legislative Day, Sacramento
April 15, 2009
Item 7.d.2) a)
Central Contra Costa Sanitary District
April 10, 2009
TO: THE HONORABLE BOARD OF DIRECTORS
VIA: JAMES M. KELLY, GENERAL MANAGER
ANN FARRELL, DIRECTOR OF ENGINEE ING
CURT SWANSON, ENVIRONMENTAL SERVICES DIVISION MANAGER
ow
FROM: JARRED MIYAMOTO- MILLS, PRINCIPAL ENGINEER
SUBJECT: TIME FOR COLLECTION OF CONNECTION FEES
Issue: The homebuilding community is contacting counties, cities and special districts
requesting that each agency consider deferring collection of impact fees to the close of
escrow for new homes, rather than continuing the current practice of collecting these
fees when a building permit is issued or utility service connections are made.
Homebuilders hope that this effort will improve their cash flow situation in the face of the
current recession.
Board President Jim Nejedly has requested that the Board discuss recent requests from
homebuilders calling for the District to defer collection of all of its connection fees to the
close of escrow, rather than collecting these fees when a connection permit is issued
just prior to actual physical connection of house plumbing to the public sewer. State law
allows the District to either continue its current practice or choose a later time for
collection of connection fees.
The agenda for the Board's regular meeting on April 16, 2009 includes an item for
discussion of the connection fee collection time issue. Staff will be available to answer
questions during the discussion.
Introduction: Many agencies collect service and impact fees from builders when the
city or county building permit is issued. The District's practice, however, has always
been to collect application, permit, capacity, annexation, inspection and reimbursement
fees (collectively referred to as "Connection Fees ") when the "Permit to Connect" is
issued. It is notable that the largest of these fees, those for capacity and
reimbursement, are calculated as a "buy- in -to- existing facilities," not as a prospective
payment for future facilities expansion.
I have attached a chart that shows a time line for permitting and construction of a typical
home in new subdivision. In the chart, I've indicated possible alternative times for
collection of connection fees that could be considered. In this memo, I will discuss the
Time for Collection of Connection Fees
April 10, 2009
Page 2 of 3
Item 7.d.2) a)
advantages and disadvantages of the District's current practice and the possible
alternative times for fee collection.
Current Policy: The District Code requires that connection fees be paid prior to
issuance of the Permit to Connect. To minimize the likelihood that the building sewer
will be damaged and to prevent discharge of construction debris to the public sewer
system, a Permit to Connect will not be issued until the builder has completed the
building's roof and rough plumbing inspection. The builder decides when to connect
between the "roof- and - rough" stage and final building department inspection prior to
issuance of the "Certificate of Occupancy." Stated another way, under the current
policy, builders can defer their fee payments by choosing a later time for connection.
Under the current policy it is relatively easy and inexpensive to ensure that fees and
charges are collected prior to the builder receiving inspection and wastewater utility
services.
Alternative Times for Collection of Connection Fees: It would be possible to defer
collection of some Connection Fees to a later point in time. Possible alternatives are:
• After water meter installation;
• Prior to city or County Building Department "Final Inspection;"
• After "Final Inspection" and prior to "Certificate of Occupancy ;"
• At Close of escrow (for completed but unsold new homes).
In order to collect fees triggered by water meter installation, it would be necessary to
develop agreements for each of the four water utilities to either, 1) collect CCCSD fees
at the same time as water system connection fees, or 2) notify us when meter
installation is requested so the District could send a bill to the builder.
If collection of fees triggered by Final Inspection or Certificate of Occupancy were to be
implemented, it would be necessary to develop agreements with each of the seven
County and city building departments for them to notify us of requests for or completed
Final Inspections or issuance of Certificates of Occupancy so the District could send a
bill to the builder.
If deferral of fee collection until Close of Escrow were to be implemented, it would be
necessary to develop a standard recordable document to require that any unpaid fees
be paid in escrow when the property is sold.
Implementing any of these alternatives would require that the District depend on others
to notify us of pending or completed triggering actions. Staff time would be needed to
develop the agreements, administer a new billing and collection process, and monitor
and audit the notifications from other agencies.
Time for Collection of Connection Fees
April 10, 2009
Page 3 of 3
Item 7.d.2) a)
It is possible that some builders may be unable to pay fees closer to the end of a project
due to a lack of funds, unavailability of credit, foreclosure or bankruptcy. Such a
situation would complicate the collection process, since the building would already be
connected to public sewer and receiving sewer service.
Summary: Under the current policy, nearly all connection fees are paid when due. The
District receives payment of fees just before providing inspection and sewer services.
The administration of the program is relatively easy and inexpensive.
Any of the possible alternatives for later collection of connection fees would require
additional staff effort to develop agreements, administer a new billing and collection
process and monitor the notifications needed from other agencies. There is a higher risk
of delinquencies because of the need to depend on others to notify us of triggering
events, and the likelihood that some builders will not make timely payment when billed.
The administrative effort required to collect delinquent fees once a building has been
connected is difficult and time consuming, particularly if the property has been sold in
the interim.
JM2:
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Central Contra Costa Sanitary District
March 27, 2009
TO: HONORABLE BOARD OF DIRECTORS
VIA: JAMES M. KELLY, GENERAL MANAGER
ANN E. FARRELL, DIRECTOR OF ENGINEERING
FROM: CURTIS W. SWANSON, ENVIRONMENTAL SERVICES DIVISION
MANAGER
SUBJECT: DRAFT LETTER IN SUPPORT OF EBMUD WATER SUPPLY
MANAGEMENT PROGRAM 2040
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Board Member McGill requested that the District consider sending a letter to East Bay
Municipal Utility District (EBMUD) in support of the Preferred Alternative for their Water
Supply Management Program 2040. Staff has prepared the attached letter of support
for Board review. Staff requests comments and guidance on the content of the letter.
The EBMUD Preferred Water Supply Alternative includes a broad and flexible portfolio
of water supply options to meet the anticipated demand of 280 million gallons per day
(MGD) in 2040. The preferred options include additional storage at Pardee or other
existing reservoirs, water conservation, water recycling, groundwater storage, water
transfers, and desalination. The plan also includes a rationing effort during periods of
drought to reduce water demand by 10 percent.
Under the Preferred Alternative, water recycling is an important element of the water
portfolio. As proposed, water recycling will increase from 9.3 MGD by an additional
11 MGD for a total of 20.3 MGD.
The draft letter requests that EBMUD consider the CCCSD Martinez Refinery Recycled
Water Project as part of their water supply portfolio. While these refineries do not use
EBMUD water, use of recycled water could free up to 20 MGD of potable water that
could be transferred from Contra Costa Water District to EBMUD through existing
interties in eastern Contra Costa County or at Freeport along the Sacramento River.
The Draft EIR for the EBMUD Water Supply Management Program 2040 is in the
review stage now. Comments are due by April 6, 2009.
Attachment
N: \ENVRSEC\AdminZwanson \Letters \2009 \EBMUD WSMP 2040 comment letter - 3- 27- 09.doc
FAX: (925) 228 -4624
JAMES M. KELLY
General Manager
KENTON L. ALM
Counsel for the District
(510) 808 -2000
ELAINE R. BOEHME
Secretary of the District
April 2, 2009
Mr. Tom Francis, PE
Senior Civil Engineer
East Bay Municipal Utility District
375 Eleventh Street, MS 407
Oakland, CA 94607 -4240
Dear Mr. Francis:
DRAFT EIR FOR WATER SUPPLY MANAGEMENT PROGRAM 2040
Central Contra Costa Sanitary District ( CCCSD) staff has reviewed the Draft EIR for the
East Bay Municipal Utility District (EBMUD) Water Supply Management Program 2040.
The Water Supply Management Program seeks to accommodate planned growth in the
EBMUD service area and an anticipated decrease in water supplies due to climate
change. For reasons detailed below, CCCSD supports the Preferred Alternative described
in the Draft EIR. The Draft EIR identifies a portfolio of water resources that includes
increased storage, water transfers, conservation, desalination, and water recycling that
could supply a projected demand of 280 million gallons per day (MGD) in 2040. In periods
of drought, the Water Supply Management Program 2040 calls for a 10 percent level of
rationing to extend water supplies.
An important reliable and renewable element of the 2040 water supply portfolio is recycled
water. EBMUD has developed industrial and irrigation recycled water projects along the
eastern shores of the San Francisco Bay Area and in the San Ramon Valley. EBMUD
already provides, or by 2010 will provide, a total of 9.3 MGD of recycled water. Under the
Preferred Alternative, EBMUD proposes to increase the use of recycled water by an
additional 11 MGD by 2040.
Because EBMUD's water service area overlaps approximately two thirds of CCCSD's
service area, CCCSD is a potential source of recycled water for landscape irrigation or
other possible uses. The Draft EIR identifies the Reliez Valley Recycled Water Project as a
potential project depending on costs and demand. In addition, golf courses and large
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Mr. Tom Francis
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April 2, 2009
water users that are not located near the CCCSD treatment plant could obtain recycled
water from satellite treatment facilities using wastewater from the CCCSD collection
system. Finally, EBMUD and Dublin San Ramon Services District will be supplying
recycled water to southern portion of the CCCSD service area through the San Ramon
Valley Recycled Water Program.
One of the components of the Supplemental Water Supply Option listed in the Draft EIR is
water transfers. A possible water transfer not specifically listed in the Draft EIR involves
development of a project to supply recycled water from CCCSD's wastewater treatment
plant to nearby industries. These industries currently use raw water from Contra Costa
Water District (CCWD). By using recycled water for cooling tower and other purposes at
the industries, up to 20 MGD of water could be made available for other uses. Some of
this water could be transferred to EBMUD through the Freeport Regional Water Project
intertie or the existing intertie between EBMUD and CCWD facilities located in eastern
Contra Costa County.
To implement the industrial recycled water project, new institutional arrangements and
treatment facilities for ammonia removal, demineralization and filtration would be needed.
The pipelines and storage tanks to deliver recycled water to the industries are already in
place.
If you would like additional information about the refinery recycled water project, please
contact Curtis Swanson, Environmental Services Division Manager at (925) 229 -7336.
Again, CCCSD supports the Preferred Alternative developed by EBMUD to provide
sustainable and reliable water supplies, and we respectfully request the possible water
transfer we described above be considered as part of that alternative.
Sincerely,
James M. Kelly
General Manager
JMK :CWS /nap
cc: CCCSD Board of Directors
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