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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. N: \PESUP \Cbradley \POSITION PAPERS\Adams \5946 -5949 Accept Position Paper.doc Page 1 of 2 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. N:\PESUP\Cbradley \POSITION PAPERS \Morales \5985 PP- AcceptContractwork.doc Page 2 of 2 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. N: \PESUP \Position Papers \Penny \7270 Authorize Agreement 02 PP.doc Page 2 of 2 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 Z; 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O O O O O H3 O (f} O O N C`") U O Q N U c LL N N N O N O MTM U) 'W'^ Q C O Z ■ m c IL O m U) a () y t� 'c RS 7 U Q C O Z ■ Q 0 C 7 LL O m CO Q cn N N O N M RS 7 U Q ■ v e`a v N Q� L V � C U) 3 N q- C O O O Cl) r co ■■ O O O O O Ln i U o � N CM 7 N O O N m O N O O W cli Cb O L /QQQQQQ/RR v O O N Z Z [0 0 0 o c LL oo I- U T 0O N Q m Cl) Q CJ O O O lC 7 >- � N O Q N N LL 7 I - U Q O O CL O z LO O O U Q Q _0 CV C 7 LL O LO O ryT� 'W^ VJ 'Q C3 � O U Q ' N N O O O O O O O O O O O O O O O O O EA O O O O O O O O O O O O O O O O O Lf) O Ln O Lf) O n �t co C) N N r r ,.a EFT EA E!? EA 6s Ef? sJelloa O Lz Q 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: Attachment L c .0 O U O rI O ^U _W O U L O E O 06 O O O C O :f. U C O N W O a7 �I Iq M N OSB4d N d U O Q E c� L 4- Q E Q L U O < V O V N G� 4.- V E d ^N c� LL L i+ O — A CO > cn N � c � O E N r N T- O co N t C O T•] u 2 C O � v O m U E O (A W +r V L a� 4- O i�+ Qi � O - L O 7 0 O — U N E o o O U) L °� m L U j < L u C cn E O O U < N U O Z5 `� O O U N O 06 O O O C O :f. U C O N W O a7 �I Iq M N OSB4d N d U O Q E c� L 4- Q E Q L U O < V O V N G� 4.- V E d ^N c� LL L i+ O — A CO > cn N � c � O E N r N T- O co N t C O T•] u 2 7.d.2)b) 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 cog 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 N: \ENVRSECWdmin \Swanson \Letters\2009 \EBMUD WSMP 2040 comment letter - 3- 27- 09.doc Mr. Tom Francis Page 2 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 N: \ENVRSEC\Admin \Swanson \Letters\2009 \EBMUD WSMP 2040 comment letter - 3- 27- 09.doc