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05/21/2009 AGENDA BACKUP
Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2009 No.: 3.b. Consent Calendar Type of action: SET DATE FOR PUBLIC HEARING Subject: ESTABLISH JUNE 18, 2009 AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON PROPOSED REIMBURSEMENT FEES FOR THE PROPERTIES WHICH COULD CONNECT TO JOB 5855 (CANON DRIVE, ORINDA), JOB 5684 (CREST VIEW COURT, ORINDA), JOB 6435 (RAMON COURT, DANVILLE), AND JOB 6453 (CHERRY LANE, WALNUT CREEK) Submitted By: Earlene Millier, Engineering Assistant III Initiating Dept. /Div.: Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD AC,T1pN: 1 E. E. Mlllier Darner C. Swanson A Farre I James elly, General naaer ISSUE: When a Reimbursement Fee is proposed for properties that could connect to a Special Facility or a Standard Facility installed by private individuals, the District Code requires a public hearing be held prior to the Board of Directors' adoption of the fee. RECOMMENDATION: Establish the Board's regularly scheduled meeting on June 18, 2009 as the date for a public hearing to receive comments on proposed Reimbursement Fees for properties which could connect to the Special Facilities identified as Job 5855 (Canon Drive, Orinda), the Standard Facilities identified as Job 5684 (Crest View Court, Orinda), the Standard Facilities identified as Job 6435 (Ramon Court, Danville), and to the Standard Facilities identified as Job 6453 (Cherry Lane, Walnut Creek) FINANCIAL IMPACTS: None related to this action. ALTERNATIVES /CONSIDERATIONS: Not Applicable. BACKGROUND: The design and construction of Special Facilities for Job 5855, and the Standard Facilities for Job 5684, 6435, and 6453 were paid for by private individuals. After a project is completed by the installer and accepted by the District, the installer contributes the project to the District for public use. Non - installer properties may connect to the contributed public sewers. The District Code provides for a Reimbursement Fee to the installer, so the installer may recover a portion of the cost for the contributed facility. The proposed Reimbursement Fees would be collected from property owners when they connect to the sewer system. The collected fees would then be disbursed to the installers of the projects. C: \DOCUME- 1 \jlopez \LOCALS -1 \Temp \PP Set Hearing Date Reimb. Fees (Final) - 5- 21- 09.doc Page 1 of 2 POSITION PAPER Board Meeting Date: May 21, 2009 Subject: ESTABLISH JUNE 18, 2009 AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON PROPOSED REIMBURSEMENT FEES FOR THE PROPERTIES WHICH COULD CONNECT TO JOB 5855 (CANON DRIVE, ORINDA), JOB 5684 (CREST VIEW COURT, ORINDA), JOB 6435 (RAMON COURT, DANVILLE), AND JOB 6453 (CHERRY LANE, WALNUT CREEK) The District Code requires that a notice of public hearing be mailed to owners of properties to which the fee could be applicable at least ten days in advance of the date set for the hearing. The notice is to include a general description of the reimbursement fee program, a description of the facility which gives rise to the proposed fee, and the amount of the proposed fee. RECOMMENDED BOARD ACTION: Establish the Board's regularly scheduled meeting on June 18, 2009 as the date for a public hearing to receive comments on proposed Reimbursement Fees for properties which could connect to the Special Facilities and the Standard Facilities identified above. N: \ENVRSEMPosition Papers \Millier\2009 \PP Set Hearing Date Reimb. Fees (Final) - 5- 21- 09.doc Page 2 of 2 a Job 5855 - Canon Drive, Orinda Legend © Potential Connectors - Number of RUE AInstaller - Number of RUE ...a... Job 5855 facilities' * Already connected 5Q 6 20 tiyh CANON 2�0 DR 21k NORTH TRAIL 264- 110 -016 214 �a French 21 y 264- 120 -01 Jupe TRAIL e 264- 110 -021 Gripp oft F 211 264 - 110.020 e � 3 MA F,RA± L 6 - a 264- 110 -022 S 264-200-001 N�LNM Grip Weiner ry 44 42 .(O EL 40 N Legend © Potential Connectors - Number of RUE AInstaller - Number of RUE ...a... Job 5855 facilities' * Already connected Job 5684 - Crest View Court, Orinda 0 e b �.p F� 11 9 © eta ♦ ♦ ♦19 �tN�ct c B 26' r Legend ® Potential Connectors - Number of RUE © Installer - Number of RUE ...a... Job 6684 facilities Job 6435 - Ramon Court, Danville 9 San Ramon Creek e N A Q Qi ••O 1? 1• © •• 0 •♦ I •1• 5� o + e � 6 0 1 O 6p0 ' • • G a d • C � O 0, OL d�. 0 v roe S 1 p Legend H 0 ...a... Potential Connectors - Number of RUE Installer- Number of RUE Job 6435 facilities Job 6453 - Cherry Lane, Walnut Creek BLDG 12- 2915 2927 ;2921, 2945 2905 1Vros 2915 C aros -- • • At ----- - - - - -- • 2910_ 29.11; \ 2940 u L E Legend Potential Connector- Number of RUE eInstaller - Number of RUE ...a... Job 6453 facilities /100 230 00 ti 193 1g1� 181, fn / X80 53 �/ Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2009 No.: 3.c. Consent Calendar Type of Action: SET PUBLIC HEARING Subject: SET JUNE 18, 2009 AS THE DATE FOR A PUBLIC HEARING FOR THE DISTRICT ANNEXATION 167 -1 & 167 -7 — NORTH GATE NEGATIVE DECLARATION Submitted By: Initiating Dept. /Div.: Russell B. Leavitt, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: R. Leavitt J iyamoto -Mills .Swanson A. Farrell ISSUE: District practice is to hold a public hearing prior to the Board's possible adoption of a Negative Declaration or Mitigated Negative Declaration RECOMMENDATION: Set June 18, 2009 as the date for a public hearing on adoption of a Negative Declaration (ND) for the proposed District Annexation 167 -1 & 167 -7 — North Gate. FINANCIAL IMPACTS: Not applicable. ALTERNATIVES /CONSIDERATIONS: Not applicable. BACKGROUND: A Draft ND has been prepared for the proposed annexation. As part of the ongoing program to process the backlog of annexation petitions and eliminate islands in the District's service area, staff proposes to annex seventy -seven North Gate area parcels comprising approximately 161 acres. North Gate is an unincorporated area of Contra Costa County, east of the City of Walnut Creek and north of Mount Diablo State Park (see Figure 1). The Draft ND was released for public review from April 29 to May 29, 2009. A copy of the Draft ND was provided to Board members at its May 7, 2009 Board meeting. While not required by law or the District's procedures, it has been the District's customary practice to hold public hearings in advance of the adoption of NDs. Holding a hearing on the proposed ND for this proposed annexation would be consistent with this practice. RECOMMENDED BOARD ACTION: Set June 18, 2009 as the date for a public hearing on adoption of a Negative Declaration (ND) for the proposed District Annexation 167 -1 & 167 -7 — North Gate. NAENVRSEC \Position Papers \Leavitt\2009 \PP Set PH North Gate ND Annex 167 Final 5 -21 -09 Page 1 of 2 FIGURE 1 r ANNEXATION AREA PROPERTY CURRENTLY WITHIN CCCSD BOUNDARY PROPERTY CURRENTLY WITHIN CCCSD SPHERE:OFINFLUENCE --- -- ---- NORTH GATE SPECIFIC PLAN BOUNDARY - - CITY OF WALNUT CREEK WENVRSEMPosition Papers \Leavitt\2009 \PP Set PH North Gate ND Annex 167 Final 5 -21 -09 Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS. POSITION PAPER Board Meeting Date: May 21, 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 DAFT POLYMER SYSTEM IMPROVEMENTS, DISTRICT PROJECT 7258, AND AUTHORIZE FILING OF THE NOTICE OF COMPLETION Submitted By: Initiating Dept. /Div.: Dana Lawson, Associate Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: D.D. L (Jlrecki? A. Farrell ISSUE: Construction has been completed on the DAFT Polymer System Improvements, District Project 7258, and the work is now ready for acceptance. RECOMMENDATION: Accept the contract work for the DAFT Polymer System Improvements, District Project 7258, 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 2005 Solids Handling Facilities Plan Update identified the need to upgrade the polymer addition system for the existing Dissolved Air Flotation Tanks (DAFT) units. When one of the three DAFT units is down for maintenance, staff adds polymer to meet peak loading conditions. By 2012, polymer addition may be required to meet peak loading conditions with all three DAFT units in operation. The polymer system utilized dry polymer and was a manual system intended for intermittent use, and was unreliable. The Solids Handling Facilities Plan Update recommended replacing the manual dry polymer system with a more reliable automatic liquid polymer system. On May 1, 2008, the Board of Directors authorized the award of a contract for the construction of the project to DW Nicholson Corporation. The Notice to Proceed was issued on June 9, 2008. The work was substantially completed on March 24, 2009. 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 WPESUMPosition Papers \Lawson \7258 Acceptance.doc Page 1 of 2 POSITION PAPER Board Meeting Date: May 21, 2009 subject ACCEPT THE CONTRACT WORK FOR THE DAFT POLYMER SYSTEM IMPROVEMENTS, DISTRICT PROJECT 7258, AND AUTHORIZE FILING OF THE NOTICE OF COMPLETION 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 $875,000. 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 DAFT Polymer System Improvements, District Project 7258, and authorize filing of the Notice of Completion. N:\PESUP \Position Papers \Lawson \7258 Acceptance.doc Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2009 No.: 3.e. Consent Calendar Type of Action: ADOPT RESOLUTION subject: ADOPT A RESOLUTION OF APPLICATION REQUESTING THAT CONTRA COSTA LAFCO INITIATE PROCEEDINGS TO ANNEX TEN SEPARATE ANNEXATION AREAS TO THE DISTRICT (DISTRICT ANNEXATION 174) Submitted By Initiating Dept. /Div.: Jarred Miyamoto - Mills, Principal Engineer Engineering /Environmental Services REVIEWED AND RECOMMEND DOARD ACTION: J. Miyamoto -Mills C. Swanson Farrell K. Alm James M. ISSUE: A Board of Directors' Resolution of Application is required to initiate Local Agency Formation Commission ( LAFCO) annexation proceedings. RECOMMENDATION: Adopt a Resolution of Application to initiate LAFCO annexation proceedings for ten areas designated as District Annexation 174. FINANCIAL IMPACTS: The District incurs costs to prepare annexation applications and pays fees to LAFCO and the State Board of Equalization for annexation processing. Annexation costs are recovered as "annexation charges' when property is connected to the public sewer system. ALTERNATIVES /CONSIDERATIONS: The Board could decline to initiate annexation of these areas, which would require that the property owners apply directly to LAFCO for annexation to the District. BACKGROUND: The owners of 33 properties in Danville and Alamo have either submitted petitions to the District for annexation or signed the Arbor Lane /Bernie Lane Contractual Assessment District Agreement (CAD 2002 -4). These properties were organized into ten "annexation areas" that include an additional 47 adjacent or surrounding unannexed properties to eliminate "islands" within District boundaries. Of the 80 properties included in the ten separate areas, 19 have connected to the District's public sewer system. All of the annexation areas are within the District's Sphere of Influence and the County Urban Limit Line. The general location of each annexation area is shown on Attachment 1. Staff has drafted a Resolution of Application (see Attachment 2) requesting that LAFCO initiate annexation proceedings for the ten areas. These annexation areas are described below: N: \ENVRSEC \Position Papers \Miyamoto- Mills\2009 \PP Adopt Res LAFCO DA 174 05 -21 -2009 Final.doc Page 1 of 2 POSITION PAPER Board Meeting Date: May 21, 2009 Subject ADOPT A RESOLUTION OF APPLICATION REQUESTING THAT CONTRA COSTA LAFCO INITIATE PROCEEDINGS TO ANNEX TEN SEPARATE ANNEXATION AREAS TO THE DISTRICT (DISTRICT ANNEXATION 174) • Annexation Area 174 -1 is comprised of two existing single - family homes on Marks Road in Alamo. • Annexation Area 174 -2 is comprised of two existing single - family homes on Ridge Road in Alamo. • Annexation Area 174 -3 is comprised of twelve existing single - family homes on Marks Road, Smith Road, and Cross Road in Alamo. • Annexation Area 174 -4 is comprised of eleven single - family homes on Smith Road in Alamo. • Annexation Area 174 -5 is comprised of six existing single - family homes on El Pintado Road in Danville. • Annexation Area 174 -6 is comprised of six single - family homes on El Pintado Road in Danville. • Annexation Area 174 -7 is comprised of two single - family homes on Miranda Lane in Alamo. • Annexation Area 174 -8 is comprised of one single - family home on Livorna Road in Alamo. • Annexation Area 174 -9 is comprised of one existing single - family homes on Camino Monte Sol in Alamo. • Annexation Area 174 -10 is comprised of thirty -two existing single - family homes, and three governmental parcels on Sunnybrook Road, Paseo Nogales, Glade Lane, Livorna Road, Bernie Lane and Arbor Lane in Alamo. Eight of the properties in this area participated in the Arbor Lane /Bernie Lane Contractual Assessment District (CAD 2002 -4). District staff has concluded that annexation of each property in Annexation Areas 174 -1 through 174 -10 is exempt from CEQA under District CEQA Guidelines Section 15319, since it would involve annexation of existing lots for exempt facilities. Adoption of the recommended resolution will establish the Board of Directors' independent finding that annexation of these properties is exempt from CEQA. RECOMMENDED BOARD ACTION: Adopt a Resolution of Application to initiate LAFCO proceedings for District Annexation 174, including the finding that annexation of each property in Annexation Areas 174 -1 through 174 -10 is exempt from CEQA under District CEQA Guidelines Section 15319. N: \ENVRSEC\Position PapersWiyamoto- Mills\2009 \PP Adopt Res LAFCO DA 174 05 -21 -2009 Final.doc Page 2 of 2 A 9k RUDGE4 10 o�\ F El oQ WALNUT CREEK 9�- IN sire 7 I` � N i 0 3000 6000 FEET ALAMO `600 � w OO LEGEND: OCCCSD ANNEXATION AREA >I Central Contra Costa Sanitary District 48 LOCATION OF DISTRICT ANNEXATION 174 AREAS Attachment 1 Attachment 2 RESOLUTION NO. 2009 - A RESOLUTION OF APPLICATION BY CENTRAL CONTRA COSTA SANITARY DISTRICT REQUESTING THAT THE CONTRA COSTA LOCAL AGENCY FORMATION COMMISSION INITIATE PROCEEDINGS FOR A CHANGE OF ORGANIZATION (DISTRICT ANNEXATION NO. 174) WHEREAS, the Central Contra Costa Sanitary District (CCCSD) proposes to initiate proceedings pursuant to the Cortese - Knox - Hertzberg Local Government Reorganization Act of 2000 for a change of organization; and WHEREAS, the change of organization is proposed for the following reasons: The owners of thirty -three (33) properties within the areas proposed to be annexed have either submitted a 'Petition for Annexation" to CCCSD, or signed the Arbor Lane /Bernie Lane Contractual Assessment District Agreement (CAD 2002 -4) requesting annexation; 2. Forty -seven (47) properties have been included as "fill -in" parcels to streamline staff work and avoid the creation of new islands inside CCCSD boundaries; 3. Nineteen (19) of the properties within the areas proposed for annexation have connected to the CCCSD public sewer system; 4. All of the properties are within the CCCSD Sphere of Influence, as previously approved by the Contra Costa Local Agency Formation Commission (LAFCO); 5. All of the properties are within the Contra Costa County Urban Limit Line; 6. CCCSD will assume responsibility, upon annexation, for maintenance and operation of public sewer facilities required to provide service to the areas proposed to be annexed; 7. CCCSD requires that all served properties annex to the District (CCCSD Standard Specifications Section 3 -07); and 8. No other sewering agency can reasonably serve these areas. WHEREAS, the proposed change in organization consists of ten (10) "single areas" (as defined by the State Board of Equalization) generally adjacent to the existing District boundary, as shown and described on the maps and geographical descriptions attached hereto as Exhibits A and B for proposed annexation areas 174 -1 through 174 -10 and by this reference incorporated herein, comprising a total of 92.2 acres, more or less; and WENVRSEC \Position Papers\Miyannoto- Mills\2009 \Reso - Attach 2 -LAFCO DA 174 Final 5- 21- 09.doc Page 1 of 3 Resolution No. 2009 - Page 2 of 3 WHEREAS, Contra Costa County is the only affected county (the areas proposed for annexation to CCCSD are in the Town of Danville, and the unincorporated territory of the County known as Alamo); and no other sewering agencies are involved; and WHEREAS, the area proposed for annexation to CCCSD is inhabited (12 or more registered voters); and WHEREAS, if the annexation were approved, all of the provisions of the CCCSD Code would become applicable to the properties annexed including the requirement that annexation charges be collected at the time of connection to the public sewer system; and WHEREAS, staff has concluded that annexation of each of the properties included in Annexation Areas 174 -1 through 174 -10 is exempt from the California Environmental Quality Act (CEQA); NOW, THEREFORE BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: THAT CCCSD staff is directed to submit this Resolution of Application requesting that the Contra Costa Local Agency Formation Commission (LAFCO) initiate annexation proceedings for the ten (10) areas shown and described in Exhibits A and B for „proposed annexation areas 174 -1 through 174 -10 hereof, as authorized and in the manner required under the Cortese - Knox - Hertzberg Reorganization Act of 2000, together with a complete application package including all other required information, geographical descriptions, maps, forms, questionnaires, indemnification agreement, fees, and a mailing list of affected property owners, and of all other property owners and registered voters who reside within 300 feet of each of the proposed annexation areas. THAT it is not the current practice of CCCSD to use its power under Health and Safety Code Section 6520 to compel property owners to connect their properties to the public sewer system involuntarily. THAT adoption of this resolution will establish the CCCSD Board of Directors' independent finding that annexation of each of the properties shown and described in Exhibits A and B for proposed annexation areas 174 -1 through 174 -10 hereto is exempt from CEQA. THAT CCCSD staff is directed to file any necessary CEQA documents with Contra Costa County. N: \ENVRSEC \Position Papers\Miyamoto- Mills\2009 \Reso - Attach 2 -LAFCO DA 174 Final 5- 21- 09.doc Page 2 of 3 Resolution No. 2009 - Page 3 of 3 PASSED AND ADOPTED this 21St day of May 2009, by the Board of Directors of the Central Contra Costa Sanitary District 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 COUNTERSIGNED: Elaine R. Boehme, Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved As To Form: Kenton L. Alm Counsel for the District N: \ENVRSEC \Position Papers \Miyamoto- Mills\2009 \Reso - Attach 2 -LAFCO DA 174 Final 5- 21- 09.doc Page 3 of 3 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2009 Type of Action: ADOPT RESOLUTION No.: 3.f. Consent Calendar subject: ADOPT A RESOLUTION AUTHORIZING EXECUTION AND RECORDING OF A GRANT OF EASEMENT TO PACIFIC GAS AND ELECTRIC COMPANY FOR AN EASEMENT ON THE TREATMENT PLANT SITE (APN: 159 - 140 -057) Submitted By: Initiating Dept /Div.: Stephanie R. Gronlund, Associate Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: S. ronlund J. M amoto -Mills C. Swanson A. Farrell ames M elly, General onager ISSUE: A resolution of the Board of Directors is required to authorize execution of grant of easement deeds and to record documents. RECOMMENDATION: Adopt a resolution authorizing execution of a grant of easement deed and recording the document with the Contra Costa County Recorder. FINANCIAL IMPACTS: None. Grant a no -cost easement, since the District is the sole user of Pacific Gas and Electric Company's (PG &E) Imhoff Substation located on the treatment plant site north of Imhoff Drive. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: PG &E requested an easement for an underground telephone conduit to allow upgrading of the communication facilities at its Imhoff Substation located on the treatment plant site north of Imhoff Drive. The substation serves only District facilities. The proposed facilities and easement are compatible with District uses. RECOMMENDED BOARD ACTION: Adopt resolution authorizing the President of the Board of the Directors and the Secretary of the District SITE o0. C« to execute a grant of easement deed to Pacific Gas and Electric Company, and authorizing staff to record the deed with the Contra Costa County Recorder. N: \ENVRSEC \Position Papers \Gronlund\2009 \PP GOE to PGE WWTP transf comm line Final 5- 21- 09.doc 6UfN 8EN Central Contra Costa Sanitary District ' BOARD OF DIRECTORS _ . POSITION PAPER Board Meeting Date: May 21, 2009 No.: 3.g. Consent Calendar Type of Action: ADOPT RESOLUTIONS Subject: ADOPT RESOLUTIONS ACCEPTING A GRANT OF EASEMENT (DISTRICT PROJECT 4985 — PARCEL R -25 -) AND AUTHORIZING EXECUTION OF A QUITCLAIM DEED (DISTRICT PROJECT 4985 — PARCEL 25`) TO PROPERTY OWNERS AT 1572 RUTH DRIVE, PLEASANT HILL Submitted By: Initiating Dept. /Div.: Ricardo Hernandez, Engineering /Environmental Services Senior Right of Way Agent REVIEWED AND RECOMMENDED FOR BOARD ACTION: Amid Tr I ". swlnU- MWEM, ISSUE: A resolution of the Board of Directors is required to accept or quitclaim easements and to record the documents. RECOMMENDATION: Adopt resolutions accepting a grant of easement and authorizing execution of a.quitclaim deed, and authorizing staff to record the documents with the Contra Costa County Recorder. FINANCIAL IMPACTS: $500 was paid to the property owner for the permanent easement exchange (grant of new easement and quitclaim of existing easement). ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: The Pleasant Hill Relief Interceptor was built in phases from 1996 through 2005. Portions of the alignment were changed during construction to accommodate micro - tunneling. Staff is now proceeding to modify the right of way alignment to match the as- built pipeline alignment by obtaining new easements and quitclaiming the old easements. Eleven easements on Ruth Drive, Harriet Drive, and Mary Drive will be obtained to accommodate the new alignment. Seven property owners, including 1572 Ruth Drive, have signed the new grants of easements. Additional easement exchanges will be submitted for Board approval once the subsequent grants of easements four property owners. HILL I VICINITY MAP I are obtained from the remaining N: \ENVRSEC \Position Papers \Hernandez M2009 \13P 4985 PHRI Accept Esmnts R -25 Final 05- 21- 09.doc Page 1 of 2 POSITION PAPER Board Meeting Date: May 21, 2009 Subject: ADOPT RESOLUTIONS ACCEPTING A GRANT OF EASEMENT (DISTRICT PROJECT 4985 — PARCEL R -25 *) AND AUTHORIZING EXECUTION OF A QUITCLAIM DEED (DISTRICT PROJECT 4985 — PARCEL 25`) TO PROPERTY OWNERS AT 1572 RUTH DRIVE, PLEASANT HILL The quitclaim deeds will extinguish CCCSD's existing easements (locations where the sewers were not installed as designed) and the grants of easements will provide CCCSD with recorded land rights of the as -built location of the sewers. RECOMMENDED BOARD ACTION: Adopt resolutions accepting a grant of easement from Micah Nash and Bristol Nash and authorizing the President of the Board of Directors and the Secretary of the District to execute a Quitclaim Deed to the same, and authorizing staff to record the documents with the Contra Costa County Recorder. 'Easement parcel numbers are for internal job log use only. N: \ENVRSEC \Position Papers \Hernandez R\2009 \PP 4985 PHRI Accept Esmnts R -25 Final 05- 21- 09.doc Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2009 Type of Action: ADOPT RESOLUTION No.: 3.h. Consent Calendar Subject: ADOPT A RESOLUTION TO APPROVE A CONSENT TO COMMON USE AGREEMENT WITH EAST BAY MUNICIPAL UTILITY DISTRICT TO PERMIT A COMPATIBLE USE OVER A DISTRICT EASEMENT, MINER ROAD, ORINDA, DISTRICT PROJECT NO. 1572, PARCEL 144 (APN 263- 020 -019, PORTION OF) Submitted By: Initiating Dept.lDiv.: Rick Hernandez, Engineering /Environmental Services Senior Right of Way Agent REVIEWED AND RECOMMENDED FOR BOARD ACTION: ISSUE: Consent to Common Use Agreements are routinely submitted to the Board for approval. RECOMMENDATION: Adopt a Resolution authorizing the President of the Board and Secretary of the District to execute the Common Use Agreement with EBMUD and authorizing staff to record the Agreement with the Contra Costa County Recorder. FINANCIAL IMPACTS: None. ALTERNATIVES /CONSIDERATIONS: The Board may decline the request from EBMUD for this Agreement; however, staff has concluded the proposed use to be compatible with our existing property rights. BACKGROUND: EBMUD is planning to build a new pumping station on Miner Road, Orinda, on land recently purchased for the project. The District has a sewer on the land and the associated easement grants the District exclusive surface and subsurface rights. The impacts on rzr•11,ri2yx. STATION ORINDA our easement will be limited to surface paving and a fence. Access to our sewer will be improved as a result of the project. RECOMMENDED BOARD ACTION: Adopt a Resolution authorizing the President of the Board and Secretary of the District to execute the Common Use Agreement with EBMUD and authorizing staff to record the Agreement with the Contra Costa County Recorder. N: \ENVRSEC \Position Papers \Hernandez R\2009 \PP 1572 Adopt Reso EBMUD Miner Rd. Final 5- 21- 09.doc Page 1 of 1 ' Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2009 No.: 3.i. Consent Calendar TypeofAction: AUTHORIZE SUPPLEMENTAL FUNDS FOR THE RECYCLED WATER PROGRAM Subject: SUPPLEMENTAL AUTHORIZATION FOR THE 2008 -09 RECYCLED WATER PROGRAM CAPITAL IMPROVEMENT BUDGET Submitted By: Initiating Dept. /Div.: Don Berger, Associate Engineer Engineering / Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: 6L (, k D. rger G. Chesler C. Swanson A. Farrell James . Kelly General anager ISSUE: Board of Directors' authorization is required to authorize supplemental funds for the Capital Improvement Program budget. RECOMMENDATION: Authorize supplemental funds of $150,000 for the Recycled Water Program 2008 -09 Capital Improvement Program budget. FINANCIAL IMPACTS: Staff has determined that there are adequate funds available in the Sewer Construction Fund for the requested $150,000 authorization. ALTERNATIVES /CONSIDERATIONS: The Board could decide not to authorize the supplemental funds and suspend recycled water planning work until the next fiscal year. However, this would delay progress developing new recycled water projects including the Martinez Refinery Project, Concord Naval Weapons Station, and Moraga Country Club Satellite Facility. BACKGROUND: The 2008 -09 Capital Improvement Program adopted by the Board in June 2008 provided a budget of $405,000 for the Recycled Water Program. Since that time, the District has significantly increased efforts to develop and implement new projects that could recycle large amounts of the District's effluent on a year round basis. In particular, the District has spent staff and consultant time to develop the Martinez Refinery Recycled Water project that could provide over 22,000 acre -feet per year (20 mgd) of recycled water to local refineries for cooling tower makeup water and boiler feed water. Studies were also conducted evaluating the use of recycled water for cooling water in potential new power plants located in East County and at the District's treatment plant in Martinez. Additional staff time has also been spent on planning efforts to supply recycled water to the Concord Naval Weapons Station development. N:\ENVRSEMPosition Papers \Berger\2009\Auth Addl Funds Recycled Water FY 08 -09 5- 21- 09.doc Page 1 of 2 POSITION PAPER Board Meeting Date: May 21, 2009 sua/ect: SUPPLEMENTAL AUTHORIZATION FOR THE 2008 -09 RECYCLED WATER PROGRAM CAPITAL IMPROVEMENT BUDGET As a result of the additional time and resources required for the Martinez Refinery Recycled Water Project and other recycled water planning projects, the 2008 -09 Recycled Water Program will be over - expended without an additional Board authorization. Staff has determined that a supplemental $150,000 authorization is required for the Recycled Water Program so that work can continue on the Martinez Refinery Project and other recycled water projects this fiscal year. This allocation will bring the total authorized Recycled Water Program Budget for 2008 -09 to $555,000, and will be allocated by staff to the Recycled Water Planning Project (DP 7259). The proposed Recycled Water Program Budget for the 2009 -10 Capital Improvement Program is $550,000. This position paper was reviewed by the Board Recycled Water Committee at their May 12, 2009 meeting and recommended for Board approval. RECOMMENDED BOARD ACTION: Authorize supplemental funds of $150,000 for the Recycled Water Program 2008 -09 Capital Improvement Program budget. Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2009 No.: 3J. Consent Calendar Type of Action: AUTHORIZE AGREEMENT Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A RENEWAL OF THE AGREEMENT WITH MOUNTAIN VIEW SANITARY DISTRICT FOR CCCSD TO PROVIDE SOURCE CONTROL INSPECTIONS AND SUPPORT PREPARATION OF THE MVSD POLLUTION PREVENTION REPORT Submitted By: Initiating Dept. /Div.: Timothy Potter, Environmental Compliance Engineering /Environmental Services Superintendent REVIEWED AND RECOMMENDED FOR BOARD ACTION: A. Farrell K. Alm James M. KAY T. Potter General Manager ISSUE: Continuation of the interagency partnership between the District and Mt. View Sanitary District (MVSD) for supporting the MVSD Pollution Prevention - Program, which consists of source control inspections and report preparation assistance, beyond fiscal year 2008 -09 requires renewal of the existing agreement. The Board of Directors' authorization is required for agreements with other public agencies. RECOMMENDATION: Approve renewing this agreement with MVSD and authorize the General Manager to execute the agreement renewal that would extend this interagency partnership for two (2) years through fiscal year 2010 -11. FINANCIAL IMPACTS: The proposed agreement provides for full cost recovery. All District staff hours /wages (e.g. field time, administrative, report writing) are multiplied by the established District overhead multiplier (e.g. benefits, supplies, and equipment including vehicles) and billed under this agreement. The estimated budget for fiscal year 2009 -10 is $19,070. The agreement sets a not -to- exceed amount of $22,000. The staff time used to provide the services will not be available to perform other District functions. ALTERNATIVES /CONSIDERATIONS: The Board may decline to renew this agreement, however this action is not recommended. Source Control Inspectors already work in the MVSD service area when completing storm water inspection work under the Clean Water Program (CWP) inspection services agreement for the City of Martinez. Some of the additional 40 inspections per year for control of discharge sources to the sewer can be combined with current storm water inspections in Martinez, and the total number is incidental when compared to the more than 1200 inspections completed annually by District inspectors. N: \ENVRSEC \Position Papers \Potter \2009\Agreement with MVSD 5- 21- 09.doc POSITION PAPER Board Meeting Date: May 21, 2009 Subject. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A RENEWAL OF THE AGREEMENT WITH MOUNTAIN VIEW SANITARY DISTRICT FOR CCCSD TO PROVIDE SOURCE CONTROL INSPECTIONS AND SUPPORT PREPARATION OF THE MVSD POLLUTION PREVENTION REPORT BACKGROUND: In 2006, MVSD requested that the District provide services to support the MVSD Pollution Prevention Program through source control inspections and assistance with preparation of the annual Pollution Prevention Report. The initial agreement was approved by both agencies' Board of Directors through fiscal year 2006- 07. The scope of services for the original agreement included conducting a minimum of 40 inspections per year of businesses in the MVSD service area that could discharge pollutants identified in the MVSD list of pollutants of concern (including Fats, Oils, and Grease wastes from food service facilities), and preparing the Annual Pollution Prevention Report with input and oversight of MVSD staff. The District was able to perform this work since it is similar to the work performed for its own Source Control /Pollution Prevention Program. MVSD recognized this capability when they approached the District to provide these services. The original agreement was extended in June 2007 for a two -year term that expires on June 30, 2009. During the past two years, MVSD staff increased their role with preparing their Annual Pollution Prevention Report. Consequently, the amount of District staff time to assist MVSD with preparing this report has decreased. The agreement being considered for fiscal years 2009 -10 and 2010 -11 continues to include a minimum of 40 source control inspections, but reflects this modified role of District staff supporting MVSD in their preparation of the Annual Pollution Prevention Report rather than a role of preparing the report. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute an agreement to renew the interagency partnership to support MVSD's Pollution Prevention Program for two (2) years through fiscal year 2010 -11 for total potential billings to MVSD of $44,000 over the two year period. N:\ENVRSEMPosition Papers \Potter\2009V+greement with MVSD 5- 21- 09.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2009 No.: 3.k. Consent Calendar Type of Action: AUTHORIZE AGREEMENT subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT TO A PROFESSIONAL ENGINEERING AGREEMENT WITH DODSON PSOMAS, INC. FOR THE SLEEPY HOLLOW IMPROVEMENTS PROJECT, DISTRICT PROJECT 5960 Submitted By: Initiating DeptJDiv.: Nathan Hodges, Assistant Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: N A. Antkowiak mes M. ISSUE: Board of Directors' authorization is required for the General Manager to execute an amendment to a professional services agreement in an amount greater than $50,000. RECOMMENDATION: Authorize the General Manager to execute an amendment to a professional services agreement with Dodson Psomas, Inc. in the amount of $25,000 for the Sleepy Hollow Improvements Project, DP 5960. FINANCIAL IMPACTS: This amendment is for $25,000. The agreement ceiling would be increased from $49,891 to $74,891. ALTERNATIVES /CONSIDERATIONS: An alternative would be to design this project using in -house engineering staff, which is not recommended because of staffs existing time commitments. BACKGROUND: The 1989 Pumping Station Master Plan (PSMP) identified the Sleepy Hollow Pumping Station as requiring upgrades. Sleepy Hollow Pumping Station, located in Orinda, was identified in the 1989 Pumping Station Master Plan as requiring some upgrades. The electrical system is over 50 -years old and in need of upgrading. The station also requires corrosion protection to ensure reliable performance. The scope of work identified to rehabilitate the station included coating of the wet well and dry well, relocating electrical equipment from the dry well to a new panel at ground level, replacing the emergency bypass connection piping, providing new water service to the station, and providing a new electrical service connection to the station. The adjacent school provides electric service to the pumping station. To ensure access to the service panel and reliability, a new Pacific Gas and Electric service will be established dedicated for this pumping station. N: \PESUP \Cbradley \POSITION PAPERS \Hodges \5960_Dodson Amend PP.doc Page 1 of 2 POSITION PAPER Board Meeting Date: May 21, 2009 subject. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT TO A PROFESSIONAL ENGINEERING AGREEMENT WITH DODSON PSOMAS, INC. FOR THE SLEEPY HOLLOW IMPROVEMENTS PROJECT, DISTRICT PROJECT 5960 Earlier this year, proposals were submitted by three engineering firms to provide design services. In February 2009, Dodson Psomas, Inc. was selected. An agreement was executed in the amount of $49,891. Additional scope of work is required to improve access to the station during an emergency. This includes a new traffic -rated hatch and adding a gate to the fence enclosure to permit parking trailer- mounted emergency equipment. Other additional scope of work includes providing a receptacle and transfer switch to allow the use of an emergency generator in the event of a power failure. An agreement amendment has been negotiated with Dodson Psomas, Inc. with a cost not to exceed $25,000. Approval of this amendment will increase the agreement ceiling from $49,891 to $74,891. The Sleepy Hollow Pumping Station Upgrades is included in the 2008 -2009 Capital Improvement Budget on pages CS -103 and CS -104. Staff has determined that there are adequate funds available and that the expenditure requirements are consistent with the Collection System Program. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15301 since it involves minor alterations to an existing public facility. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute an amendment to the existing professional services agreement with Dodson Psomas, Inc. with a cost ceiling of $74,891 for the Sleepy Hollow Pumping Station Upgrades, District Project 5960. N'\PESUP\Cbradley \POSITION PAPERS \Hodges \5960_Dodson Amend PP.doc Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2009 No.: 5.a. Bids and Awards Type of Action: AWARD CONSTRUCTION CONTRACT /AUTHORIZE EXECUTION OF CONTRACT DOCUMENTS subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH BEST CONTRACTING SERVICES, INC. FOR THE CONSTRUCTION OF HEADWORKS AND MECHANICAL SHOP ROOFS, DISTRICT PROJECT NO. 7211 Submitted By: Initiating Dept.Xiv.: Dana Lawson, Associate Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Lawson B. Than ecki A. Farrell James M. Ily, General Wffnager_ ISSUE: On May 11, 2009, three sealed bids were received and opened for the construction of the Headworks and Mechanical Shop Roofs, District Project No. 7211. The Board of Directors must award the contract or reject bids within 50 days of the bid opening. Authorize the General Manager to execute the contract documents subject to SUBMITTAL requirements. RECOMMENDATION: Find that the project is exempt from the California Environmental Quality Act (CEQA), award a construction contract, and authorize the General Manager to execute the Contract Documents subject to favorable review of insurance certificates, bond submittals, appropriate Contractor license, and any other required submittals (SUBMITTALS). FINANCIAL IMPACTS: Approximately $250,000, including design, bid price, contingency, and construction management. ALTERNATIVES /CONSIDERATIONS: Reject all bids, which is not recommended. BACKGROUND: Both the Headworks Building and the Mechanical Shop/ Warehouse roofs have experienced accelerated deterioration due to the low pH of the vapor coming from the Quad Odor Control Units adjacent to the Headworks Building. This has caused corrosion of metal work on both roofs and numerous leaks from the roof of the Mechanical Shop/ Warehouse (see Attachment 1 for project location). Both will be rehabilitated and a protective coating designed for industrial/ corrosive environments will be installed. N:\PESUP \Position Papers \Lawson \7211 Award PP.doc Page 1 of 5 POSITION PAPER Board Meeting Date: May 21, 2009 Subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH BEST CONTRACTING SERVICES, INC. FOR THE CONSTRUCTION OF HEADWORKS AND MECHANICAL SHOP ROOFS, DISTRICT PROJECT NO. 7211 District staff prepared the plans and specifications for the project. The Engineer's estimate for construction of Headworks and Mechanical Shop Roofs is $135,000. This ,project was advertised on April 21 and 27. Three (3) sealed bids ranging from $152,820 to $293,215 were received and publicly opened on May 11. The Engineering Department conducted a technical and commercial review of the bids and determined that Best Contracting Services, Inc. is the lowest responsive bidder with a bid amount of $152,820. A summary of bids received is shown in Attachment 2. The District will administer the construction contract and will provide contract administration, inspection, office engineering, and submittal review. The funds required to complete this project, as shown in Attachment 3, are $200,000. The total cost of Headworks and Mechanical Shop Roofs is anticipated to be $250,000. This project is included in the fiscal year (FY) 08/09 Capital Improvement Budget (CIB) on pages TP -56 & 57. Staff has conducted a cash -flow analysis of the Treatment Plant Program budget and concluded that adequate funds are available for this project. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 15301, since the work involved rehabilitation of existing facilities. Authorization of the construction contract for this project will establish the Board of Directors' independent finding that the project is exempt from CEQA. RECOMMENDED BOARD ACTION: Find that the project is exempt from CEQA, award a construction contract in the amount of $152,820 for the construction of the Headworks and Mechanical Shop Roofs, District Project No. 7211, to Best Contracting Services, Inc., the lowest responsive bidder, and authorize the General Manager to execute the Contract Documents subject to SUBMITTAL requirements. NAPESUP \Position Papers \Lawson \7211 Award PP.doc Page 2 of 5 Central Contra Costa HEADWORKS AND MECHANICAL Attachment Sanitary District SHOP ROOFS 3 ' District Project 7211 Project Location NAPESUP \Position Papers \Lawson \7211 Award PP.doc Page 3 of 5 ATTACHMENT HEADWORKS AND MECHANICAL SHOP ROOFS DISTRICT PROJECT 7211 SUMMARY OF BIDS PROJECT NO.: 7211 NO. OF ADDENDA: 0 DATE/TIME: MAY 11, 2009/2:00 PM PROJECT NAME: HEADWORKS AND MECHANICAL SHOP ROOFS PROJECT MANAGER: DANA LAWSON PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA ENGINEER EST.: $135,000 BIDDER BID PRICE Best Contracting Services, Inc. $152,820 510- 886 -7240 29300 Pacific Street Hayward, CA 94544 IMR Contractor Corp. $218,800 510- 293 -0137 24967 Huntwood Avenue Hayward, CA 94544 Western Roofing Service $293,215 415 - 648 -6472 Ext. 235 15002 Wicks Boulevard San Leandro, CA 94577 BIDS OPENED BY /s/ Julie Lopez DATE: May 11, 2009 N: \PESUP \Position Papers \Lawson \7211 Award PP.doc Page 4 of 5 M H Z w 2 U H a LL O w a O 2 Cl) J Q U Z Q 2 U w D Z Q cn Y 4' O D Q w Tf i F- N w n Z O0 Z H F.. U ON W Z n. v ~w U w �a F- _ND �m H O a ; O U C 0 o o Y C 0 U 0 00 O O 0 0 0 � LO O N K3 N C4 fH O O N O C O O 0 0 C4 vi 0 000 co co E yr 00 00 00 00 co N O O NO Nc0 64 603. F z w 2i w p C7 F z Lo U) w c O c p� z w _ c Z w Z C o O_ E O Q o V :. w o 0 F O z Oz m�� LLF ¢ j w of F 4) o N ¢ m F F- OU w U w U m z y c z F N O JW dO o 00 U O c'� O U Z U p ¢ = F-0 aci U o o w 2 a U 2 w 0- c - X w O d F Q w z w c c H t; ti o H ¢ O F o op F.N cU �p U Ha U) V V m c m w H z z' ptz6— nsa� pU @ c OF 00 a w N M V In O �n w 0 a� m m Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2009 No.: 5.b. Bids and Awards Type of Action: AWARD CONSTRUCTION CONTRACT /AUTHORIZE EXECUTION OF CONTRACT DOCUMENTS subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH INSITUFORM TECHNOLOGIES, INC. FOR THE CONSTRUCTION OF THE MINER ROAD TRUNK SEWER IMPROVEMENT PROJECT, DISTRICT PROJECT 5951 Submitted By: Initiating Dept. /Div.: Tom Godsey, Associate Engineer Engineering / Capital Projects REVIEWED% AND RECOMMENDED FOR BOARD ACTION: T. Godsey A. Antkowiak A. Farrell ames M. Ily. eneral Manager ISSUE: On May 8, 2009, six (6) sealed bids were received and opened for the construction of the Miner Road Trunk Sewer Improvement Project, District Project 5951. The Board of Directors must award the contract or reject bids within 50 days of the bid opening. Authorize the General Manager to execute the contract documents subject to SUBMITTAL requirements. RECOMMENDATION: Find that the project is exempt from the California Environmental Quality Act (CEQA), award a construction contract, and authorize the General Manager to execute the Contract Documents subject to favorable review of insurance certificates, bond submittals, appropriate Contractor license, and any other required submittals (SUBMITTALS). FINANCIAL IMPACTS: Approximately $560,000, including design, bid price, contingency, and construction management. ALTERNATIVES /CONSIDERATIONS: Reject all bids, which is not recommended BACKGROUND: In 1986, the Collection System Master Plan identified and prioritized trunk sewer capacity deficiencies. Since then, a significant investment in the highest priority projects, particularly in Martinez, Lafayette, Walnut Creek, and Orinda, have been completed. At many locations where overflows had been routine during wet weather, wastewater and infiltration /inflow are conveyed without overflow even during severe storms. The 2000 Collection System Master Plan Update showed the existing 18 -inch trunk sewer in Miner Road was significantly under capacity and needed to be upsized to N: \PESUP \Cbradley \POSITION PAPERS \Godsey \5951 -Award PP Miner Rd .doc Page 1 of 6 POSITION PAPER Board Meeting Date: May 21, 2009 subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH INSITUFORM TECHNOLOGIES, INC. FOR THE CONSTRUCTION OF THE MINER ROAD TRUNK SEWER IMPROVEMENT PROJECT. DISTRICT PROJECT 5951 27 inches. Staff prepared a preliminary design for the open -cut installation of the new trunk sewer and evaluated the potential construction impacts. Due to the significant impacts during construction, staff analyzed flow diversion alternatives to take advantage of an under - utilized 15 -inch trunk sewer that parallels Miner Road. The analysis showed that the flow diversion would solve the capacity issue. TV inspection showed that the 15 -inch line needed to be renovated to ensure reliability. The Miner Road Trunk Sewer Improvement Project will renovate 3,870 - linear feet of 15 -inch diameter sewer lines in Miner Road, Orinda. Renovation of the sewers in Miner Road will involve close cooperation with the City of Orinda and EBMUD, which is also constructing a pipeline along Miner Road just north of the CCCSD pipeline work. District staff prepared the plans and specifications for the project. The Engineer's estimate for construction of the Miner Road Trunk Sewer Improvement Project is $1,250,000. This project was advertised on April 23 and 30, 2009. Six (6) sealed bids ranging from $238,796.50 to $325,877.00 were received and publicly opened on May 8, 2009. The Engineering Department conducted a technical and commercial review of the bids and determined that Insituform Technologies, Inc. is the lowest responsive bidder with a bid amount of $238,796.50. A summary of bids received is shown in Attachment 2. All of the bids were significantly lower than the Engineer's estimate. The sewer to be lined is a size (15 -inch diameter) such that it can be successfully lined either with water insertion /cure or steam insertion /cure. The project specifications allowed use of either method, but the engineer's estimate was based on water insertion /curing. Steam insertion /curing for sewer liners mitigates many of the critical and expensive elements of this project — namely, traffic control and sewer bypassing. The District will administer the construction contract and will provide contract administration, inspection, survey, office engineering, and submittal review. The funds required to complete this project, as shown in Attachment 3, are $110,000. The total cost of the Miner Road Trunk Sewer Improvement Project is anticipated to be $560,000. This project is included in the fiscal year (FY) 2008 -09 Capital Improvement Budget (CIB) on pages 79 -80. Staff has conducted a cash -flow analysis of the Collection System Program, budget and concluded that adequate funds are available for this project. NAPESUP \Cbradley \POSITION PAPERS \Godsey \5951 -Award PP Miner Rd .doc Page 2 of 6 POSITION PAPER Board Meeting Date: May 21, 2009 subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH INSITUFORM TECHNOLOGIES, INC. FOR THE CONSTRUCTION OF THE MINER ROAD TRUNK SEWER IMPROVEMENT PROJECT, DISTRICT PROJECT 5951 Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 15301, since the work involves a minor alteration of an existing facility. Authorization of the construction contract for this project will establish the Board of Directors' independent finding that the project is exempt from CEQA. RECOMMENDED BOARD ACTION: Find that the project is exempt from CEQA, award a construction contract in the amount of $ 238,796.50 for the construction of the Miner Road Trunk Sewer Improvement Project, District Project 5951, to Insituform Technologies, Inc., the lowest responsive bidder, and authorize the General Manager to execute the Contract Documents subject to SUBMITTAL requirements. NAPESUP \Cbradley \POSITION PAPERS\Godsey\5951 -Award PP Miner Rd .doc Page 3 of 6 SCOPE OF WORK: MINER ROAD TRUNK SEWER, • 3,870 LF *CURED IN PLACE PIPE ORINDA FILTER PLANT E.B,M.U.D. ORINDA COUNTRY CLUB 0 ORINDA COUNTRY CLUB ORINDA COUNTRY CLUB q Central Contra Costa I r ATTACHMENT 1 Sanitary District DP 5951 -MINER RD i� TRUNK SEWER IMPROVEMENT PROJECT m Page 4 of 6 Drawing No. 1 ATTACHMENT MINER ROAD TRUNK SEWER IMPROVEMENT PROJECT DISTRICT PROJECT SUMMARY OF BIDS PROJECT NO.: 5951 DATE: MAY 8, 2009 PROJECT NAME: MINER ROAD TRUNK SEWER IMPROVEMENT PROJECT PROJECT LOCATION: ORINDA, CALIFORNIA ENGINEER EST.: $1,250,000 NO. BIDDER BID PRICE Insituform Technologies, Inc. $238,796.50 9654 Titan Court Littleton, CO 80125 303 - 791 -7199 2 PIPEnology, Inc. $258,880 4253 Duluth Avenue Rocklin, CA 95765 916- 408 -5038 3 Repipe California $269,905 5525 East Gibraltar Street Ontario, CA 91764 714 - 715 -5722 4 Pacific Liners $278,260 70 Union Way Vacaville, CA 95687 707 - 448 -4072 5 Michels Corporation $291,711 1715-16 th Street SE Salem OR 97302 503- 364 -1199 6 SAK Construction $325,877 3215 South 7`h Street, Suite 105 Phoenix, AZ 85040 602 - 300 -1241 BIDS OPENED BY /s /Julie Lopez DATE 5/8/09 SHEET NO. 1 of 1 NAPESUP \Cbradley \POSITION PAPERS \Godsey \5951 -Award PP Miner Rd Am Page 5 of 6 F- U w O w a H Z W w MO H Of Z a W 2 W> Q F-w Q Y Z H a O af W Z No I LO rn LO 0 Z H U w O Of a H U F- U) t W Q 2 H FA W Z O F- L) D H Z O v W w CL 0 m F- (1) O CL w N O U c 0 v CD r (A c O U e 0 0 O O o co 0 in U) v en to c O C O r O h O E t4 y� N 60 Q h (3) Cl) O O CD O O O O O O O O O n N O O O O O O op co O O Ld M M M N R fR M M r <H M fH z Z W 2 W a ° y Z F LO OU + y A O d W c w Z Z O Z W 0 J W a O W m m O W a w m U W N v U D Z 4) i°oN C7 o y LU O ~ O J O M Z N c r R V) m w Q V V , Z 2 u o v a F Z V N p W Z Z 0 0 fc V U C U w J O LL d - C GN o Z W p Q M CL r c E o c CL x c O ~ W ZG V V a F G v o C Z Z 6 W Z in o a U U a LL O Z N M 6 6 m z N 0 0 E M w O O u m m i O •_ m 75 m @ C_ � O C C m 3 0 m m N i Y � O t rn u •N C m A V N m m 0 o •� c ._ O Z O. m � c c S.2 V � as O C d = m m u m m O N m 6 � m :o c c •r m O O y m 0 0 N m m a Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2009 No.: 5.c. Bids and Awards Type or Action: AWARD CONSTRUCTION CONTRACT /AUTHORIZE EXECUTION OF CONTRACT DOCUMENTS /AUTHORIZE AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT subject: AWARD A CONSTRUCTION CONTRACT TO MANITO CONSTRUCTION, INC.; AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS; AND AUTHORIZE AN AMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT WITH BROWN AND CALDWELL FOR THE CONSTRUCTION OF THE SOLIDS HANDLING IMPROVEMENTS PROJECT, DISTRICT PROJECT 7260 Submitted By: Initiating Dept. /Div.: Gary Rathunde, Associate Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: G. Rathunde B. Than A. Farrell ISSUE: On May 5, 2009, 12 sealed bids were received and opened for the construction of the Solids Handling Improvements Project, District Project 7260. The Board of Directors must award the contract or reject bids within 50 days of the bid opening. Authorize the General Manager to execute the contract documents subject to SUBMITTAL requirements and to execute a professional services agreement amendment greater than $50,000. RECOMMENDATION: Find that the project is exempt from the California Environmental Quality Act (CEQA), award a construction contract to Manito Construction, Inc., authorize the General Manager to execute the Contract Documents subject to favorable review of insurance certificates, bond submittals, appropriate Contractor license, and any other required submittals (SUBMITTALS), and authorize the General Manager to execute an amendment to the Professional Engineering Services Agreement with Brown and Caldwell. FINANCIAL IMPACTS: Approximately $4,977,000 including design, bid price, contingency, and construction management. ALTERNATIVES /CONSIDERATIONS: Reject all bids, which is not recommended. BACKGROUND: The Solids Handling Plan, which was updated in September 2005, recommended that the District immediately improve the equipment for handling N:\PESUP \Position Papers \Rathunde \7260_Award Contract.doc Page 1 of 10 POSITION PAPER Board Meeting Date: May 21, 2009 subject. AWARD A CONSTRUCTION CONTRACT TO MANITO CONSTRUCTION, INC.; AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS; AND AUTHORIZE AN AMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT WITH BROWN AND CALDWELL FOR THE CONSTRUCTION OF THE SOLIDS HANDLING IMPROVEMENTS PROJECT, DISTRICT PROJECT 7260 biosolids to address emergency (i.e. equipment or structural failures resulting in lengthy down time) or non - routine operation (i.e. short-term spike in solids production). The existing sludge loading station was not designed for processing the entire sludge production for any length of time and does not have any odor control capabilities. Therefore, a properly designed sludge truck loading station is required. The scope of work for this project includes design and construction of a sludge truck loading facility with odor control facilities and with a sludge cake hopper to store sludge cake generated in overnight hours or on holidays when hauling to landfills is not possible. Attachment 1 shows the location of the project work. In an effort to reduce the project construction cost, a value engineering effort was conducted during the design process. In addition to reducing the project construction cost by almost $440,000, staff elected to bid three items as additives to obtain better cost information prior to deciding the appropriate course of action. These items were: Additive Bid Item 1: Architectural metal siding to enclose the hoppers, Additive Bid Item 2: The installation of a screw conveyor load out system under the hoppers Additive Bid Item 3: Construction of the facility using a proprietary metering gate system from RDP Technologies, Inc. District staff executed a Professional Engineering Services agreement with Brown and Caldwell in the amount of $567,304 to prepare design drawings and specifications for this project. The Engineer's pre -bid estimate for construction cost, excluding the additive bid items, was $4,150,000. The bid forms included a base bid schedule, which was used as a basis to compare bids to determine the lowest responsive bidder, and an additive bid schedule for additional work the District may elect to construct. This project was advertised on April 3 and 8, 2009. Twelve sealed bids ranging from $3,432,000 to $4,897,970 were received and publicly opened on May 5, 2009. The Engineering Department conducted a technical and commercial review of the bids and determined that Manito Construction, Inc. is the lowest responsive bidder with a base bid amount of $3,432,000. A summary of bids received is shown in Attachment 2. A summary of the base bid and the three additive bid items is shown in Attachment 3. Additive Bid Item 1 provides for an architectural enclosure around the facility. The enclosure is not needed from an operational perspective, but an enclosure around the hoppers would help blend the new facility into the architecture of surrounding buildings N:\PESUP \Position Papers \Rathunde \7260_Award Contract.doc Page 2 of 10 POSITION PAPER Board Meeting Date: May 21, 2009 subject: AWARD A CONSTRUCTION CONTRACT TO MANITO CONSTRUCTION, INC.; AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS; AND AUTHORIZE AN AMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT WITH BROWN AND CALDWELL FOR THE CONSTRUCTION OF THE SOLIDS HANDLING IMPROVEMENTS PROJECT, DISTRICT PROJECT 7260 when viewed from a distance. Matching the new facilities' siding to that on the Solids Conditioning Building would help keep the new structure from looking "industrial." This has typically been a design consideration on treatment plant projects. For the above reasons, staff recommends awarding Additive Bid Item 1 (architectural enclosure) at a cost of $140,800 as part of the overall award. Additive Bid Items 2 and 3 address the truck load -out capabilities of the system. The items are mutually exclusive because both provide a means to meter sludge into trucks. During design, staff decided to bid the competing loading processes against each other through the additive bid procedure. Based on the bid results (Additive Bid Item 2 was $218,600 and Additive Bid Item 3 was $417,900) and the fact that the screw conveyor load -out system would provide greater flexibility in the future, staff recommends awarding Additive Bid Item 2 (screw conveyor load -out system) at a cost of $218,600 as part of the overall award. Including the two additive bid items in the award brings the project construction cost to $3,791,400, still below the Engineer's estimate of $4,150,000. The District will perform construction management and will provide contract administration, survey, office engineering, and submittal review. Staff recommends retaining Brown and Caldwell to provide support services during construction for this project because Brown and Caldwell prepared the plans and specifications and, therefore, has a unique understanding of the project design. The construction support services include reviewing shop drawings and submittals, responding to design questions, and providing inspection services for the construction work. Inspection services have been added to supplement District staff during the peak summer construction workload, and to provide specialty inspection capability (structural, electrical, and instrumentation). A construction support services contract with a cost ceiling of $390,000 has been negotiated with Brown and Caldwell. This will bring the total professional services contract with Brown and Caldwell to $957,304. The funds required to complete this project, as shown in Attachment 4, are $4,977,000. The total cost of the Solids Handling Improvements Project is anticipated to be $5,682,000. This project is included in the fiscal year 2008 -2009 Capital Improvement Budget (CIB) on pages TP -22 and TP -23. Staff has conducted a cash -flow analysis of the Treatment Plant Program budget and concluded that adequate funds are available for this project. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15301 since it involves N:\PESUP \Position Papers \Rathunde \7260_Award Contract.doc Page 3 of 10 POSITION PAPER Board Meeting Date: May 21, 2009 subject: AWARD A CONSTRUCTION CONTRACT TO MANITO CONSTRUCTION, INC.; AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS; AND AUTHORIZE AN AMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT WITH BROWN AND CALDWELL FOR THE CONSTRUCTION OF THE SOLIDS HANDLING IMPROVEMENTS PROJECT, DISTRICT PROJECT 7260 minor alterations to an existing public facility involving negligible or no expansion of use. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. RECOMMENDED BOARD ACTION: Staff recommends the following: 1. Find that the project is exempt from CEQA, 2. Award a construction contract in the amount of $3,791,400 (includes Base Bid of $3,432,000 and Additive Bid Items 1 and 2 at a cost of $359,400) for the construction of the Solids Handling Improvements Project, District Project 7260, to Manito Construction, Inc. the lowest responsive bidder, 3. Authorize the General Manager to execute the Contract Documents subject to SUBMITTAL requirements, and 4. Authorize the General Manager to execute an amendment to an existing professional services agreement not to exceed $390,000 with Brown and Caldwell to review shop drawings and submittals, responding to design questions, and provide inspection services for the work. N:\PESUP \Position Papers \Rathunde \7260_Award Contract.doc Page 4 of 10 � 1 j i SOLIDS III I CONDITIONING `i '_- \ •`> >` i BUILDING i • t %' ;I SLUDGE TRUCK LOADING FACILITY n �!I x Central Contra Costa Sanitary District SOLIDS HANDLING IMPROVEMENTS ATTACHMENT I DISTRICT PROJECT 7260 1 r LOCATION MAP d< _ N:\PESUP \Position Papers \Rathunde \7260_Award Contract.doc Page 5 of 10 ATTACHMENT 2 SOLIDS HANDLING IMPROVEMENTS PROJECT DISTRICT PROJECT NO. 7260 SUMMARY OF BIDS PROJECT NO.: 7260 DATE/TIME: MAY 5, 2009/2:00 PM PROJECT NAME: SOLIDS HANDLING IMPROVEMENTS PROJECT PROJECT MANAGER: GARY E. RATHUNDE PROJECT LOCATION: MARTINEZ, CALIFORNIA ENGINEER EST.: $4,150,000 NO. BIDDER BID PRICE 1 Manito Construction, Inc. $3,432,000 925 - 600 -0220 1043 Serpentine Lane, Suite I Pleasanton, CA 94566 2 C. Overaa & Company $3,489,000 510- 234 -0926 200 Parr Boulevard Richmond, CA 94801 3 Gantry Constructors, Inc. $3,524,100 928 - 649 -2093 917 Main Street Clarkdale, AZ 86324 4 GSE Construction Company, Inc. $3,610,728 925 - 447 -0292 1020 Shannon Court Livermore, CA 94550 5 Kaweah Construction Co. $3,618,000 916- 375 -1833 3960 Industrial Boulevard Suite 300 W. Sacramento, CA 95691 6 K. G. Walters Construction Co. $3,657,995 707 - 527 -9968 195 Concourse Blvd. Suite A Santa Rosa, CA 95403 7 Pacific Mechanical Corp. $3,695,156 925 - 827 -4940 2501 Annalisa Drive Concord, CA 94520 NAPESUP \Position Papers \Rathunde \7260_Award Contract.doc Page 6 of 10 8 JMB Construction, Inc. $3,768,948 650 - 267 -5300 132 South Maple Avenue South San Francisco, CA 94080 9 Waterworks Construction, Inc. $3,992,711 707 - 450 -9142 4989 C- Noonan Lane Fairfield, CA 94533 10 Valentine Corporation $4,168,981 415- 453 -3732 111 Pelican Way San Rafael, Ca 94901 11 Monterey Mechanical Company $4,497,000 510- 632 -3173 8275 San Leandro Street Oakland, CA 94621 12 NCCI, Inc. $4,887,970 415 - 974 -0947 $4,897,970(1) Pier 26 The Embarcadero San Francisco, CA 94105 -1248 (1) The final total bid price for NCCI, Inc. did not add up to the total price shown. The corrected Total Bid amount for bid items 1 through 8 is $4,897,970. BIDS OPENED BY /s/ Elaine Boehme DATE May 5, 2009 NAPESUP \Position Papers \Rathunde \7260_Award Contract.doc Page 7 of 10 ATTACHMENT SOLIDS HANDLING IMPROVEMENTS PROJECT DISTRICT PROJECT NO. 7260 SUMMARY OF ADDITIVE BID PRICES NO. BIDDER BASE BID ADDITIVE ADDITIVE ADDITIVE PRICE BID ITEM #1 BID ITEM #2 BID ITEM #3 (HOPPER (SCREW (RDP CLADDING) CONVEYOR) METERING GATE) 1 Manito Construction, Inc. $3,432,000 $140,800 $218,600 $417,900 925 - 600 -0220 1043 Serpentine Lane, Suite I Pleasanton, CA 94566 2 C. Overaa & Company $3,489,000 $30,000 $190,000 $130,000 510 - 234 -0926 200 Parr Boulevard Richmond, CA 94801 3 Gantry Constructors, Inc. $3,524,100 $175,000 $210,000 $115,000 928 - 649 -2093 917 Main Street Clarkdale, AZ 86324 4 GSE Construction Company, $3,610,728 $218,000 $237,000 $354,000 Inc. 925 - 447 -0292 1020 Shannon Court Livermore, CA 94550 5 Kaweah Construction Co. $3,618,000 $265,000 $200,000 $465,000 916 - 375 -1833 3960 Industrial Boulevard Suite 300 W. Sacramento, CA 95691 6 K. G. Walters Construction Co. $3,657,995 $175,000 $215,000 $385,000 707 - 527 -9968 195 Concourse Blvd. Suite A Santa Rosa, CA 95403 7 Pacific Mechanical Corp. $3,695,156 $75,000 $275,000 $400,000 925 - 827 -4940 2501 Annalisa Drive Concord, CA 94520 8 JMB Construction, Inc. $3,768,948 $77,000 $218,000 $180,000 650 - 267 -5300 132 South Maple Avenue South San Francisco, CA 94080 NAPESUP \Position Papers \Rathunde \7260_Award Contract.doc Page 8 of 10 9 Waterworks Construction, Inc. $3,992,711 $61,000 $234,000 $400,000 707 - 450 -9142 4989 C- Noonan Lane Fairfield, CA 94533 10 Valentine Corporation $4,168,981 $65,000 $250,000 $250,000 415 - 453 -3732 111 Pelican Way San Rafael, Ca 94901 11 Monterey Mechanical Company $4,497,000 $80,000 $300,000 $440,000 510- 632 -3173 8275 San Leandro Street Oakland, CA 94621 12 NCCI, Inc. $4,897,970 $52,297 $202,064 $0 415 - 974 -0947 Pier 26 The Embarcadero San Francisco, CA 94105 -1248 NAPESUP \Position Papers \Rathunde \7260_Award Contract.doc Page 9 of 10 F U W 0 w IL o U) F N Z r W F m z W W U W a�IL IL Q ? U J � Z F Z in H D J Q N y 0 U c 0 0 0 0 N C O U 0 ° 0 o 0 0 0 � o m N C Q O O O O O E M sY p o 0 0 0 ° NW (00 (00 O °O °O° O ON .0N N � M 69 m V3 faA Ffi � V3 M d N Z mLL W � U LU O 00 U ._ W N N d N 0 O �c co ` ^N� z w ~m �(j O �'r mc— 4 �0 Q p N W e 00 d U L N Z Z W o ai ¢ O N Z H W W J a o O W O p W v v Q U) F N Z O W 0 d D o o X C O1 E o of x 0= a� d w d c 2 2 tO z Q m o. m m `�° z D p O o cQi w ~ W N OJT z U m0 cc U N�p U U U m O U N U F O 0 0 0 U L) 0 0 O N O N D G z LU N W U 0 J K a U N N J N J F LL j J f0 f0 U J J a lL y0 d = d. U Q O) Q U Q C C OJ Q 333oF Q r W J O U Q W p �r p ��,L°r- �� Q z� pdNO QO y04� c C7O O p NO O CL (n OJ U) U Q Q w U m z ❑ U O m U w co w ❑ U m J H z p 2 O ma ci UaU O m U a U U K ma 7 O 7 00 U U d U H u Q U O — N M 0 Z 0 �I O m m a Agenda Item 5c SOLIDS HANDLING IMPROVEMENTS Central Contra Costa Sanitary District Project Components (Base Bid) • Structure with Three Cake Hoppers • Enclosed Truck Bay with Odor Control Facilities • Operator Observation Platform /Control Station • Wash Down Facilities r ft Base Bid Results Lowest Five Bidders • Engineer's Estimate $4,150,000 • Bid Range $39432,000 - $4,897,970 • Manito Construction $3,432,000 • C. Overaa & Company $3,489,000 • Gantry Constructors $3,524,100 • GSE Construction $3,610,728 • Kaweah Construction $396189000 Additive Bid Items • Item #1 - Architectural enclosure around hoppers • Item #2 - Screw conveyor load out system • Item #3 - RDP Technologies metering gate load out system Additive Bid Item #1 Architectural Enclosure • Siding around hoppers to match the Solids Condition Building • Would conceal the 3 hoppers rather than present the appearance of 3 elevated storage tanks • Cost: $1409800 Sludge Truck Loading Facility Without Siding Sludge Truck Loading. Facility With Siding Additive Bid Item #2 Screw Convevor • Screw Conveyor installed under hoppers • Sludge cake from the hoppers can be moved in either direction to the drop chutes • Screw speed controls flow rate to trucks • Cost: $21%600 i Why Were Additive Items #2 and #3 Included? • A future centrifuge upgrade —Dryer sludge cake best handled with either of these two options • The RDP metering gate is patented —RDP would not supply just the gate — Design based on the RDP gate would have required sole sourcing the entire hopper structure • Two options increased competition Recommendations • Award construction contract to Manito Construction that includes additive bid items #1 & #2 • Base Bid $394329000 • Additive Item #1 $1409800 • Additive Item #2 $218,600 • Total Const. Cost $397919400 Questions? G.a,*�) Central Contra Costa Sanitary District May 15, 2009 TO: HONORABLE MEMBERS OF THE BOARD FROM: JAMES M. KELLY, GENERAL MANAGER SUBJECT: STATE BUDGET SITUATION AND IMPACT ON CCSD (AGENDA ITEM# 6.a.1) Attached is a memo to CASA members from CASA Lobbyist Mike Dillon in regards to the State Budget "May Revision" and a potential property tax take. More information on the specific impact to the District will be provided prior to the May 21, 2009 Board meeting after the May 19, 2009 statewide special election. cc: Department Directors Debbie Ratcliff Michael Scahill Colette Curtis -Brown Elaine Boehme Attachment JMK:slc HAGeneral Manager's Directory\Board Documents=09\State Budget Update.doc May 14, 2009 CAIMIN /A ASSNUAT /NN of SANIM119N AC SMS 1215 K Street, Suite 2290, Sacramento, CA 95814 PH: (916) 446 -0388— FX: (916) 231 -2141 www.casaweb.org TO: CASA Member Agencies CASA Attorneys CASA Associates CASA Executive Board CASA Legislative Committee FROM: Mike Dillon, CASA Lobbyist Christina DiCaro, CASA Lobbyist RE: NEWS FROM THE CAPITOL VIA ELECTRONIC MAIL GOVERNOR RELEASES TWO VERSIONS OF "MAY REVISION" OF BUDGET: ONE PLAN BORROWS $2 BILLION FROM LOCAL GOVERNMENT In an unprecedented move, today Governor Arnold Schwarzenegger released his annual "May Revision" of the Budget, and proposed two different versions of the "Revise," which are based on the possible outcomes of the May 19t statewide special election. Version #1 of the May Revision assumes that the ballot measures pass, but the so- called "contingency" May Revise assumes that the ballot measures do not pass, thus leaving a $21.3 billion hole in the state Budget. In his afternoon press event, the Governor stated that the state needs to "plan for either proposal." He added that since the enactment of the February Budget package, the revenue numbers have "changed dramatically" and noted that for the first time since 1938, there has been a drop in personal income taxes. The Director of the Department of Finance, Mike Genest, echoed the Governor's statements noting, "Disturbingly, we will close this year (2008 -09) $5 billion in the hole." Most significant is the proposal in the Governor's "contingency' May Revise to borrow $2 billion from local governments if the May 19th ballot initiatives fail. You will recall that we alerted you to this possibility last week. The Governor's "contingency" May Revise reads: "$1.982 billion — Borrowing from Local Government. The May Revision contingency plan proposes to borrow eight percent of the property tax revenues received by cities, counties, and special districts in 2008 -09 as authorized in Article Xlll of Section 25.5 of the Constitution. Repayment must be made within the next three years. Legislation is also proposed to create a joint powers authority to allow local agencies to borrow against the state repayment as a group." When asked about the proposal to borrow from local government, the Governor stated, "I absolutely despise taking from local government. This is the worst case scenario. It affects our services to police, fire, parks and libraries." Later in the press conference the Governor added, "There is no other way out. We have to pay it back in three years and we hope the economy improves." Please note: This proposal, and all other May Revise proposals by the Governor, will be subject to extensive discussion in the legislature in the coming weeks. When this issue is set in its appropriate Budget subcommittee for hearing, we will alert you and you will have the opportunity to write the members to encourage them to reject the Governor's proposal to borrow from local government. In addition, you may continue writing the 4 legislative leaders and the Governor to express your concerns. The press asked the Governor if releasing the so- called "contingency version" of the May Revise was merely a "scare tactic" to encourage voters to vote for the ballot initiatives on May 1 g`". The Governor stated, "It is important to let the people know what the numbers are and the choices ahead." The Governor was also asked if he anticipated looking at new revenues as a solution, to which the Governor responded, "Looking for new revenues is out of the question. We have to do this with cuts and borrowing. Anyone who has a problem with this approach needs to come forward with a pencil and paper and tell us how to do this.... Everyone is very clear in this Capitol. I won't sign a Budget with taxes or even a majority vote Budget." Other major areas impacted by the Governor's proposals are: proposed deep cuts to K -12 education and higher education, cuts to Medi -cal and to programs benefitting the aged, blind, and disabled, and prison programs. The Governor is also suggesting the elimination of several boards and commissions (such as the Integrated Waste Management Board), the imposition of various new fees, and some fund shifts. Agenda Item 6.a.2) Board Meetinq of May 21, 2009 Written Announcements: Board Follow -Up Items a) Pilot program for Deferred Payment of Connection Fees As directed by the Board's May 7th motion, staff has developed a one -year pilot program to allow builders to defer payment of connection fees. Staff will meet with representatives of the Homebuilders Association and some of the builders during the week of May 18th to discuss details of the program and to receive their input. A draft resolution to implement the pilot program will be discussed with the Budget and Finance Committee on June 1 st and presented to the Board for consideration at its meeting on June 4, 2009. The proposed program would allow deferred payment of annexation and capacity fees. Staff has determined a legal way to waive the related fees before the June 4th meeting. Reimbursement, application, plan review and inspection fees are proposed to continue to be collected when the Connection Permit is issued. Reimbursement fees would be excluded because they are collected on behalf of private parties (including some of the same homebuilders seeking relief under the pilot program). The other excluded fees reimburse the District for its current operating expenses incurred to provide services immediately following permit issuance. Meetings /Events b) Lafayette Sewer Renovation Project (Phase 6) Public Workshop The District hosted a public workshop on Thursday, May 14, 2009 from 7 p.m. to 8 p.m. The meeting was held at Burton Valley Elementary School in Lafayette. There were 15 attendees, including one business from the Lafayette Circle site. Topics discussed were expected construction impacts, paving and property restoration, lateral replacement, and schedule constraints. c) San Ramon Mobile Household Hazardous Waste Collection Event On Saturday, May 2, 2009, the District conducted a mobile household hazardous waste (HHW) collection event in San Ramon. A total of 700 appointments were scheduled but due to rain, 606 participants dropped off their waste. Of the participants, 487 were from San Ramon, 103 were from Danville, 15 were from the unincorporated areas (Alamo, Diablo, etc.), and 1 was from outside the service area (Livermore). In February, staff received a request from the City of San Ramon to hold one HHW collection event in fiscal year 2009 -10. At the February 11th HHW Committee meeting, the Committee directed staff to budget for one event. Under the same guidelines as past events, San Ramon is responsible for the incremental cost difference of the event and the permanent facility. Financial Items d) 2009 Annual Recycled Water Rate Increase Recycled water rates will increase by 3% on July 1, 2009, in accordance with the District's Recycled Water Ordinance. This is an automatic annual increase that was built into the Ordinance; no Board action is needed to implement the rate increase. This increase is consistent with the annual increase in water rates by the Contra Costa Water District (CCWD), and our rates remain at about 80% of CCWD's rates. The following is a comparison of the new and existing rates: Staff will mail letters to our recycled water customers in early June 2009, announcing the increase and providing the new rates. Former Potable Water Former Canal Water Rates Customers Customers $2.75 per 1,000 gallons $1.31 per 1,000 gallons Existing $896 per acre -foot $426 per acre -foot $2.83 per 1,000 gallons $1.35 per 1,000 gallons New $923 per acre -foot $439 er acre -foot Staff will mail letters to our recycled water customers in early June 2009, announcing the increase and providing the new rates. General Updates e) Mailing of Applications to Vehicle Service, Machine Shop and Certain Manufacturing Facilities to Initiate Process of Issuing Best Management Practices Permits to Implement Tiered Local Limits for Copper, Lead, Mercury, and Cyanide Source Control staff will mail applications to businesses that may require a permit to comply with the Tiered Local Discharge Limits for copper and lead. The tiered limits were established to provide a higher allowance for certain pollutants that businesses discharge under a permit. The permit will be used to communicate Best Management Practices (BMPs) that when followed will enable the businesses to comply. The permit document is streamlined and there is no charge to the businesses for the permit. The businesses affected by this mailing include vehicle service facilities, machine shops, and certain manufacturing facilities. Staff will evaluate the information received to determine if the business discharges process wastewater to the sanitary sewer because not all businesses that will be mailed an application will require a permit. The current mailing list includes 713 businesses. Staff anticipates that approximately 300 to 500 businesses will need to be issued a BMP Permit. The District will advertise the availability of the Compliance Consultation Service in the application packets to allow these businesses access to the District's inspectors to assess the operations without threat of immediate enforcement. The District just completed the third annual session of the Industrial User (IU) Academy in April. Twenty people from fifteen companies attended this session and provided very positive feedback. One comment received was to focus sessions for specific business types in order to reduce the time required to deliver the information by eliminating the content that is only applicable to certain types of businesses. The IU Academy curriculum will be modified to focus on the information that only applies to businesses subject to this BMP Permit Program. These modified sessions will be focused on the new BMP permits. f) Acceptance of Central Contra Costa Sanitary District's 2007 Greenhouse Gas Emissions by the California Climate Action Registry On April 23, 2009, the California Climate Action Registry (CCAR) notified the District that they had reviewed our 2007 greenhouse gas emissions inventory. CCAR further indicated that the District's emissions inventory meets the standards for general reporting protocol, entered our emissions report into the CCAR database, and granted the District the status of Climate Action Leader for the second year in a row. The District can continue to display the logo (shown below) identifying the District as a Climate Action Leader. Agenda Item 6.a.2) Board Meeting of May 21, 2009' Additional Written Announcements: Financial Information /Updates g) Moody's Investors Services Rating Report Moody's Investors Services released their rating report on the District which affirms the continuation of the Aa2 rating for the 2002 Revenue Installment Certificates and the 1998 Refunding Revenue Bonds. The bonds are secured by net revenues of the wastewater system and property taxes. The Aa2 rating incorporates the District's strong financial position, low debt burden with modest future debt plans, and wealthy customer base. Meetings /Events h) Contra Costa Dental Society's General Membership Meeting Source Control staff attended the Contra Costa Dental Society's (CCDS) General Membership meeting on Tuesday, May 19; 2009. The District paid for a table where posters and informational handouts were used to communicate information on the Dental Amalgam Program. Three primary objectives were communicated: 1) The District's dental amalgam program has resulted in significant reductions of mercury discharged to the collection system, entering the treatment plant, and discharged to Suisun Bay. The Central County dental practices were acknowledged for the contributions to these reductions, 2) Periodic spikes in mercury concentrations in the collection system monitoring and enhanced influent monitoring emphasize the importance of the dental practices staying vigilant with following all the dental amalgam Best Management Practices, including properly maintaining the amalgam separators, and 3) Announce the beginning of on -sight visits in June 2009 to assess the level of BMP implementation and to assist dental facilities with certain BMPs as needed. The attendance was the second highest with 190 reservations. The feedback received was positive with several dentists stating their commitment to being "Green" and supporting the District's program goals. Several dentists from out of the District's service area commented that they had already installed amalgam separators or were working with their wastewater agency to install separators indicating that the District's dental amalgam program has increased awareness of dental mercury issues and acceptance of mercury control programs throughout Contra Costa County. When the event sponsors were introduced, the District was recognized first. The District is planning to purchase periodic advertisements in the CCDS newsletter to communicate strategic messages to the dental community through the year. i) Open House for District Annexation 167A On Monday, May 18, 2009, staff held an open house in Walnut Creek at the Ygnacio Valley Public Library to present and discuss the District's proposal to annex seventy -seven properties in the-North Gate, Castle Rock, and Pine Creek areas of unincorporated Walnut Creek. There were also discussions on the Negative Declaration currently under review for the proposal and the alternatives available for property owners to extend public sewers in the area. The public comment period on the Negative Declaration runs through May 29, 2009, and a public hearing is scheduled for June 18, 2009. Twelve property owners attended the open house. Most attendees expressed an interest in the possibility of developing public sewer service for their properties. General J) Inspection Services for Capital Projects The District will be using the services of Tom Trice, a retired District employee, for inspections during the construction phase of Capital Projects. Tom will be working for Valley Engineering and his service is part of the Inspection Services Contract that the Board approved. Tom intends to work for three months, and will start work in the first week of June on the South Orinda Sewer Renovation (Phase 4) Project. Central Contra Costa Sanitary District Board Meeting May 21, 2009 Board Member McGill Item 6.d.1) FUTURE MEETINGS AND CONFERENCES WITH PAID EXPENSES AND /OR STIPEND Will attend the Contra Costa Council Installation Dinner June 3, 2009 Will attend the Mayors' Conference in Orinda, CA, June 4, 2009 Future Committee Meetings: None scheduled MEETINGS AND CONFERENCES THAT EXPENSES AND /OR STIPEND WAS PAID Committee Meetings Recycled Water, May 12, 2009 Finance Committee, May 18, 2009 Item 6.d.2 Announcements Attended Contra Costa Council Land Use Task Force Meeting May 13, 2009 with Dan Keen, Manager< Concord regarding the economic down turns impacts on the City' s budget Attended John Coleman' s, EBMUD, Ward Briefing May 14, 2009 Attended Contra Costa Council Water Task Force Meeting May 19, 2009 with presentation from the Public Policy Institute of California regarding the Delta, Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: MAY 21, 2009 No.: 7.a. Engineering Type or Action: APPROVE PILOT PROGRAM subject: APPROVE A 3 -MONTH PILOT PROGRAM TO EXTEND THE HHW FACILITY OPERATING SCHEDULE TO SIX DAYS PER WEEK BEGINNING JUNE 1, 2009 AND ENDING AUGUST 31, 2009 Submitted By: Initiating Dept. /Div.: David Wyatt, HHW Supervisor Engineering /Environmental Services REVIEWED AND RECOM�M/E�V(Np /DEEED, FOR BOARD ACTION: �1 D. Wyatt C. Swanson A Farrell James M. elly General pager ISSUE: The Board of Directors' approval is necessary to extend the operating schedule of the District's household hazardous waste (HHW) collection program. RECOMMENDATION: Approve a 3 -month pilot program to extend the HHW Facility operating schedule to include Mondays. Direct staff to report back to the Committee with participation and cost data, and a recommendation whether to continue a six -day per week operation. FINANCIAL IMPACTS: The estimated annual increase in cost to be open on Mondays would be approximately 3.8% or $71,100 annually. The cost of the 3 -month pilot program is estimated to be approximately $20,000. ALTERNATIVES /CONSIDERATIONS: The alternative to opening on Monday would be to keep the existing operating schedule which would incur no additional cost. BACKGROUND: At the HHW Committee's request, staff studied adding Monday to the HHW operating schedule. Staff estimated the additional operating costs associated with being open a sixth day at $71,000 per year. Staff also asked the HHW contract agencies for feedback on the additional costs and the benefits associated with being open one more day a week. Responses from the contract agencies were mixed. The City of San Ramon and Mt. View Sanitary District were pleased with the added convenience of being open six days a week and approved of the added expense. The City of Concord (also speaking for the Town of Clayton) agreed that being open six days would add value to the service, but was not in favor of incurring additional costs at this time. Staff discussed extending the HHW Facility operating schedule with the HHW Committee on April 28, 2009. The Committee recommended that staff conduct a three month trial beginning June 1, 2009, to gather participation and cost data associated with N: \ENVRSEC \Position Papers \Wyatt\2009 \PP 3 -Mo Pilot Prog Adding Monday 5- 21- 09.doc POSITION PAPER Board Meeting Date: May 21, 2009 subject. APPROVE A 3 -MONTH PILOT PROGRAM TO EXTEND THE HHW FACILITY OPERATING SCHEDULE TO SIX DAYS PER WEEK BEGINNING JUNE 1, 2009 AND ENDING AUGUST 31, 2009 the extra operating day. The data will be compiled prior to the end of the trial so the Committee can review and discuss the data and decide on an outcome. The Committee further recommended that the HHW contract agencies (the cities of Clayton, Concord, and San Ramon, and Mt. View Sanitary District) should not be charged for added costs for the 3 -month trial, which are estimated to be $20,000. If these other agencies participated in the pilot study, the cost to the District would be reduced to approximately $13,300. RECOMMENDED BOARD ACTION: Approve a 3 -month pilot program to extend the HHW Facility operating schedule to include Mondays. Direct staff to report back to the Committee with participation and cost data, and a recommendation whether to continue a six -day per week operation. N:\ENVRSEC \Position Papers \Wyatt \2009\PP 3 -Mo Pilot Prog Adding Monday 5- 21- 09.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2009 No.: 8.a. Budget and Finance Type of Action: BUDGET REVIEW Subject: RECEIVE THE FISCAL YEAR 2009 -2010 OPERATIONS & MAINTENANCE BUDGET; RECEIVE THE FISCAL YEAR 2009 -2010 DEBT SERVICE FUND BUDGET Submitted By: Initiating Dept✓Div.: Debbie Ratcliff, Controller Administrative /Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION. D. Ratcliff sgraves es M. Kelly, General Manager ISSUE: The fiscal year (FY) 2009 -2010 Operations & Maintenance (O &M) Budget and Debt Service Fund Budget are being submitted for review at the May 21, 2009, Board Meeting, and are scheduled for approval and adoption at the June 4, 2009 Board Meeting. RECOMMENDATION: Review the FY 2009 -2010 O &M Budget and Debt Service Fund Budget and provide District staff with comments and guidance leading to the public hearing, approval, and adoption of the Budgets at the June 4, 2009, Board Meeting. FINANCIAL IMPACTS: The FY 2009 -2010 O &M Budget was prepared using an assumed $10 rate increase in the Sewer Service Charge (SSC) which will generate approximately $1.7 million a year, beginning in 2009 -10. This will increase the total SSC from $311 to $321 per Residential Unit Equivalent (RUE). The SSC is allocated as follows: $292 to O &M and $29 to the Sewer Construction Fund (Capital). If there is no rate increase in FY 2009 -2010, capital projects will need to be deferred, greater rate increases will be needed in the future, or a larger amount of bond funding may be needed. The FY 2009 -2010 O &M Budget results in an increase of $1.9 million to O &M reserves in order to restore the 10% O &M prudent reserve. The O &M reserve is projected to drop below the prudent reserve amount due to less than budgeted revenue and higher than budgeted expenses in 2008 -2009. Net Revenue over Expense is projected to be $1.8 million less than budget. (See Attachment II — 2008 -2009 Projected compared to 2008 -2009 Budget columns). N:\ ACCOUNTING \GMTEMPI \BUDGET\2009 -2010 BUDGET\Budget Review O &M 2009 -10 PP.DOC Page 1 of 8 POSITION PAPER Board Meeting Date: May 21, 2009 subject.. RECEIVE THE FISCAL YEAR 2009 -2010 OPERATIONS & MAINTENANCE BUDGET; RECEIVE THE FISCAL YEAR 2009 -2010 DEBT SERVICE FUND BUDGET Property tax is currently used for Debt Service and Capital. If the District were not to receive property tax, a SSC rate increase of $71 /RUE (22 %) will be needed. ALTERNATIVES /CONSIDERATIONS: At the Board Workshop in January, different SSC rate scenarios were considered that impact District revenues as well as the fiscal year -end reserve balances. At that time, a rate increase of $15 /RUE was recommended. In March, 2009, subsequent scenarios were reviewed, and staff recommended a $10 /RUE annual SSC increase along with a bond issuance resulting in a net of approximately $30 million to finance one -time capital projects. A bond issuance allows a reduction in our current ratepayers' financial burden, yet still supports District services and capital improvements. In April, 2009, the District ratepayers received a Board approved Proposition 218 Notice of Proposed Increase in Annual SSC of up to $10 per year or $321 for FY 2009 -2010. The assumptions used in developing this year's budget reflect the current staff recommendation of a $10 /RUE annual SSC rate increase. The Board may choose not to implement a SSC rate increase for FY 2009 -2010. Also, the Board may choose the option of not making, or reducing payment towards, the unfunded liability associated with GASB 45 post retirement benefits. Finally, the Board may choose an alternative that was not presented. The O &M and Capital draft budgets will be revised, if necessary, to reflect Board action. BACKGROUND: Staff has developed a 10 -year financial plan for forecasting revenues, expenses and fund balance. The model assists the District in setting and projecting SSC rates. Staff made a presentation at the January 29, 2009, Board Workshop recommending a $15 increase for FY 2009 -2010. Also, at the Board Workshop, issues were presented that will impact future years including the current volatile economy, the increasing cost of benefits such as future CCCERA rates and OPEB funding and their associated liabilities, capital cost trends, and regulatory exposures. It was stated that determining the assumptions used in the model was much more challenging this year due to the current economic downturn and market instability. In March, 2009, subsequent scenarios were reviewed, and the current staff recommendation is a $10 /RUE per year SSC increase along with a bond issuance that nets $30 million to finance capital improvements. In April, 2009, the District ratepayers N: \NCCOUNTING\GMTEMPI \BUDGET\2009 -2010 BUDGET\Budget Review O &M 2009 -10 PP. DOC Page 2 of 8 POSITION PAPER Board Meeting Date: May 21, 2009 subject: RECEIVE THE FISCAL YEAR 2009 -2010 OPERATIONS & MAINTENANCE BUDGET; RECEIVE THE FISCAL YEAR 2009 -2010 DEBT SERVICE FUND BUDGET received a Proposition 218 Notice of Proposed Increase in Annual SSC of up to $10 per year or $321 for FY 2009 -2010. The FY 2009 -2010 proposed budget includes the allocation of $5.0 million from the O &M Fund towards the unfunded liability associated GASB 45 post employment benefits. A new actuarial study will be prepared later this year. The $5.0 million includes an approximate payment of $2.6 million for retiree medical, dental and life insurance premiums annually with the difference of $2.4 million to be deposited in a GASB 45 investment trust, at Board direction. The O &M portion of this position paper focuses on variances between projected FY 2008 -2009 expenses and the proposed FY 2009 -2010 Budget. The position paper also notes any significant variances between the budgets. Attachment I summarizes the Debt Service Fund budget. Attachment II summarizes the O &M revenues, expenses, and reserve balances for seven years - FY 2003 -2004 through FY 2009 -2010 (five years of actual expenses plus FY 2008 -2009 projected and FY 2009 -2010 proposed budget numbers). O &M Revenue: The following table compares Projected FY 2008 -2009 to Budget FY 2009 -2010 O &M Revenue: Total District O &M revenue for FY 2008 -2009 is projected to be $55.8 million compared to the FY 2009 -2010 budget amount of $61.6 million, resulting in an increase of $5.8 million or 10.4 %. This is due to: • The internal allocation between O &M and Capital shifts more SSC revenue to O &M to restore the O &M prudent reserve. The O &M SSC allocation increases N: \ACCOUNTING \GMTEMPI \BUDGET\2009 -2010 BUDGET\Budget Review O &M 2009 -10 PP.DOC Page 3 of 8 Projected Budget Increase /Decrease ( -) Variance 2008 -2009 2009.2010 Variance S Sewer Service Charge $ 43,122,000 $ 49,126,100 6,004,100 13.9 City of Concord 9,300,000 9,100,000 (200,000) -2.2% All Other 3,423,000 3,442,196 19,196 0.6% Total $ 55,845,000 S 61,668,296 5,823,296 10.4% Total District O &M revenue for FY 2008 -2009 is projected to be $55.8 million compared to the FY 2009 -2010 budget amount of $61.6 million, resulting in an increase of $5.8 million or 10.4 %. This is due to: • The internal allocation between O &M and Capital shifts more SSC revenue to O &M to restore the O &M prudent reserve. The O &M SSC allocation increases N: \ACCOUNTING \GMTEMPI \BUDGET\2009 -2010 BUDGET\Budget Review O &M 2009 -10 PP.DOC Page 3 of 8 POSITION PAPER Board Meeting Date: May 21, 2009 sub /ect RECEIVE THE FISCAL YEAR 2009 -2010 OPERATIONS & MAINTENANCE BUDGET; RECEIVE THE FISCAL YEAR 2009 -2010 DEBT SERVICE FUND BUDGET from $260 to $292; the SSC allocation to the Sewer Construction Fund decreases from $51 to $29. This increased allocation ($4.0 million) as well as the $10 /RUE rate increase ($1.7 million) and 900 anticipated new connections ($0.3 million), results in an increase to O &M SSC revenue of $6.0 million compared to projected FY 2008 -2009. • City of Concord revenue is expected to be $0.2 million or 2.2% less than projected, mainly due to lower Treatment Plant expenses due to natural gas savings. Since Concord shares a flow portion of Treatment Plant expense, lower plant expenses translate to lower Concord revenue. O &M Expense: The table below compares Projected FY 2008 -2009 to Budget FY 2009 -2010 O &M Expense: Total District O &M expenses are projected to be $59.1 million in FY 2008 -2009 compared to a FY 2009 -10 O &M budget of $59.7 million. This reflects a $0.6 million or N :\ACCOUNTING \GMTEMPI \BUDGET\2009 -2010 BUDGET\Budget Review O &M 2009 -10 PP.DOC Page 4 of 8 Projected Budget Increase /Decrease ( -) 2008 -2009 2009 -2010 Variance $ Variance % Salaries $ 22,916,003 23,875,148 959,145 4.2% Benefits & Cap O/H Credit 17,008,795 16,451,602 (557,193) -3.3% Chemicals 1,449,000 1,609,000 160,000 11.0% Utilities 6,281,500 5,295,400 (986,100) -15.7% Repairs & Maintenance 3,166,702 3,331,511 164,809 5.2% Hauling & Disposal 980,960 1,030,460 49,500 5.0% Professional & Legal 607,240 690,960 83,720 13.8% Outside Services 2,236,000 2,278,410 42,410 1.9% Self- Insurance 850,000 1,383,000 533,000 62.7% Materials & Supplies 1,922,150 1,887,625 (34,525) -1.8% All Other 1,655,968 1,912,553 256,585 15.5% Total $ 59,074,318 59,745,669 671,351 1.1% Total District O &M expenses are projected to be $59.1 million in FY 2008 -2009 compared to a FY 2009 -10 O &M budget of $59.7 million. This reflects a $0.6 million or N :\ACCOUNTING \GMTEMPI \BUDGET\2009 -2010 BUDGET\Budget Review O &M 2009 -10 PP.DOC Page 4 of 8 POSITION PAPER Board Meeting Date: May 21, 2009 sub /ect. RECEIVE THE FISCAL YEAR 2009 -2010 OPERATIONS & MAINTENANCE BUDGET; RECEIVE THE FISCAL YEAR 2009 -2010 DEBT SERVICE FUND BUDGET modest 1.1% increase in expenses. Since O &M salaries and benefits make up the majority of O &M expense, variances are discussed in detail below: O &M Salaries: District O &M salaries are projected to be $22.9 million in FY 2008 -2009 compared to a budget of $23.9 million in FY 2009 -2010 resulting in an increase of $1.0 million or 4.2 %. This increase is mainly due to the filling of several vacant positions, assumed cost of living adjustments and merit increases for newer or promoted employees within their salary ranges, offset by a 3% salary vacancy factor reducing expense by -$0.7 million. Benefits Including Capitalized Administrative Overhead Credit: District O &M benefits including the capitalized administrative overhead credit for FY 2008 -2009 are projected to be $17.0 million compared to a budget of $16.5 million in FY 2009 -2010. This is a favorable decrease of $0.5 million or 3.3 %. The major factors contributing to this decrease are discussed below (ordered from largest to least savings): • A 4% benefit vacancy factor that reduces budgeted benefit expenses of -$0.8 million is used in FY 2009 -2010. • Capitalized Administrative Overhead, which is the District overhead charged to Capital Projects and credited back to O &M expense, is projected to be -$3.3 million in FY 2008 -2009 as compared to a FY 2009 -2010 Budget of -$3.4 million, generating a decrease of $0.1 million to O &M expenses. • The GASB 45 projected trust contribution for future benefits decreases from $2 million in FY 2008 -2009 to $2.4 million in FY 2009 -2010. This is because the total annual assumed contribution is less, and the current annual trust contribution decreases as retiree premiums increase. • CCCERA retirement rates, surprisingly, went down. The CCCERA Board voted in July 2008, to reduce 2009 -2010 rates by 2.75 %, based on favorable actuarial results for the year ended December 2007; however, based on the current economy and investment losses of 25 % -30% in 2008, future rates (2010 -11 and beyond) will increase substantially, perhaps even doubling rates in 5 years. Staff estimates if the employer rate doubles, annual costs will be approximately $5.0 million more per year based on current budgeted salary. N :\ACCOUNTING \GMTEMPI \BUDGET\2009 -2010 BUDGET\Budget Review O &M 2009 -10 PP. DOC Page 5 of 8 POSITION PAPER Board Meeting Date: May 21, 2009 subject. RECEIVE THE FISCAL YEAR 2009 -2010 OPERATIONS & MAINTENANCE BUDGET; RECEIVE THE FISCAL YEAR 2009 -2010 DEBT SERVICE FUND BUDGET Also, market losses of this magnitude, combined with the 2009 -10 rate decrease will adversely impact the CCCERA funding status that was currently at 89.9% in the December, 2007 report. Another ongoing savings is from the CCCERA prepayment program that the District utilizes by paying the total annual estimated CCCERA contribution at the beginning of the fiscal year, rather than in monthly installments; FY 2008 -2009 prepayment program savings are expected to be approximately $300,000 compared to FY 2009 -2010 savings of $400,000. Since CCCERA receives our contribution at the beginning of the year and can invest the lump sum, they assume they will earn 7.8 %, and in turn, discount our actual contribution amounts. In this way, the District saves money, because if we left the prepayment amount in our temporary investment portfolio and paid CCCERA monthly, we would earn substantially less. Our portfolio is currently earning less than 1.8 %. This program is year -to -year and can be discontinued by CCCERA at anytime. Total retirement expense savings from FY 2008 -2009 to FY 2009 -2010 are $0.05 million or 0.6 %; the higher salary base that the benefit is based on offsets the rate decrease and increased prepayment program savings. The above expense savings are offset by: Medical and Health Insurance costs are $0.5 million higher in the FY 2009 -2010 budget compared to projected FY 2008 -2009. Rate increases were modest this year; the HealthNet rate increase was 9.5% and the Kaiser rate increase was 2.0% for active employees (compared to 21.7% and 5.0% last year, respectively). The retiree rates increased by 6.3% for HealthNet and 1.8% for Kaiser, resulting in a weighted average of 3.7% (compared to a weighted average of 8.0% last year). The total number of covered employees and retirees continues to increase each year as employees retire and new hires replace them. Workers' Compensation rates increased anticipated rate increase of 10 %, and an factor from 79% to 97 %. by $0.2 million, mainly due to an increase in the experience modification N:W000UNTING\GMTEMP t \BUDGET\2009 -2010 BUDGET\Budget Review O &M 2009 -10 PP. DOC Page 6 of 8 POSITION PAPER Board Meeting Date: May 21, 2009 subject. RECEIVE THE FISCAL YEAR 2009 -2010 OPERATIONS & MAINTENANCE BUDGET; RECEIVE THE FISCAL YEAR 2009 -2010 DEBT SERVICE FUND BUDGET • Dental premiums remained flat due to a locked -in two -year rate for FY 2008 -09 and 2009 -10. The increase in total covered employees results in a modest increase of $0.03 million. All other benefits combined, consisting of Medicare Tax, Deferred Compensation, Long -Term Disability Insurance, Life Insurance, and Accrued Compensated Absence increased by only $0.1 million. The remaining O &M expenses total $19.1 million in FY 2008 =09 compared to $19.4 million in FY 2009 -10 resulting in a modest increase of $0.3 million or 1.4 %. Expense category variance explanations are provided in the budget document at a District and Department level. Significant variances are noted below: • Utilities - Favorable market conditions have allowed the pre - purchase of natural gas at a lower cost, resulting in a favorable variance. This is minimally offset by small increases in electrical and telephone costs. Total savings for this expense category is almost $1.0 million. Self- Insurance Contribution —The Self- Insurance contribution is made up of the annual budgeted contribution of $0.9 million for FY 2009 -10 plus a catch -up amount of $0.5 million that was earmarked to be transferred in FY 2007 -08, but did not occur. The total increase for this expense category is $0.5 million comparing FY 2008 -09 to FY 2009 -10. • All other expense categories combined are $0.7 million higher in FY 2009 -10 compared to FY 2008 -09. Any revisions to the FY 2009 -2010 O &M Budget determined at the May 21, 2009, Board Meeting will be incorporated in the Budget submitted for approval at the June 4, 2009, Board Meeting, at which the following actions are scheduled for Board consideration: Conduct a public hearing to receive comments on the FY 2009 -2010 O &M Budget, Self- Insurance Fund Budget and Debt Service Fund Budget. N :\ACCOUNTING \GMTEMPI \BUDGET\2009 -2010 BUDGET\Budget Review O &M 2009 -10 PP. DOC Page 7 of 8 POSITION PAPER Board Meeting Date: May 21, 2009 Subject RECEIVE THE FISCAL YEAR 2009 -2010 OPERATIONS & MAINTENANCE BUDGET; RECEIVE THE FISCAL YEAR 2009 -2010 DEBT SERVICE FUND BUDGET Conduct a public hearing to receive comments on the Sewer Service Charge rates for FY 2009 -2010 and for the collection of the FY 2009 -2010 Sewer Service Charge and prior year delinquent charges on the County Tax Rolls. Approve and adopt the FY 2009 -2010 O &M Budget, Self- Insurance Fund Budget and Debt Service Fund Budget, and approve a resolution which establishes a SSC increase of $10 /RUE for a total SSC of $321 /RUE for FY 2009 -2010. RECOMMENDED BOARD ACTION: Review the FY 2009 -2010 O &M Budget and Debt Service Fund Budget and provide District staff with comments and guidance leading to the approval and adoption of the Budgets at the June 4, 2009, Board Meeting. N :\ACCOUNTING \GMTEMPI \BUDGET\2009 -2010 BUDGET\Budget Review O &M 2009 -10 PP.DOC Page 8 of 8 CENTRAL CONTRA COSTA SANITARY DISTRICT DEBT SERVICE FUND 2009 -10 BUDGET Debt Service Revenue: Sewer Service Charge Reserve Account Bond Interest Income Ad Valorem Tax Total Debt Service Revenue Debt Service Expense: 1998 Bond Interest Payment and Amortized Costs 2002 Bond Interest Payment and Amortized Costs Recycled Water Loan Interest Payment Total Interest Payment and Amortization Costs 1998 Bond Principal Payment 2002 Bond Principal Payment Recycled Water Loan Principal Payment Total Principal Payments Total Debt Service Interest, Amortized Costs and Principal Payments Fund Balance - Beginning of Year Revenue over Expense Transfer from /(to) O &M or Capital Fund Balance - End of Year gmtempl /2009 -10 Budget/Debt Svc Fund Attachment 47,000 3,812,721 $ 3,859,721 $ 674,407 608,195 38,597 $ 1,321,199 $ 1,735,000 655,000 148,522 $ 2,538,522 $ 3,859,721 T Y. = p oo(oto MLn LntnO n nnv LO C O O O m U) m 0 n In CO N OD N c 0 p r 0 N T O W O c0 co O r co V E N N O'T m m 7 N II 0 CMO m� m LO N P- 3 U O r — It CD m M co O m n 0 LO m d' lz m m C CD n C N r M T Cn N d co N a E R M O W C > N Q � W p W N _ = C9 a0 (n ¢ W x U) F Z C W CD a. d N W C Lu uj O N Z M W Q W > ¢a L) ou CA M M M C+o N N N N o 00 m CD T V co v N CD m CO Ln o Ln a M m N CD n M co LO LO Co n O LO O LO V m 0 LO Ln co n co Co 0 co n n n c O m CO co M CO n n (A n O V O 7MM• -NCO O M n rl Ln O M Cb CO O O 0 ^ O h 7 ct) N CO O h C7 U V M m m— (D CD -t m 0 0 0 N O M Cry C ^ N V' .= O N h E CO CD c� ob e^ t 2 V cg ¢ C N Nt Oj M I co 9 N ro a N CO co CL Q 023 (U 0 a 00 0 0 (D co m (0 to m Cn [O n ° 7 CO LO (O p OU O O O O M O m 7 I� O co CL X N Cn v m O O O O 0 m CD 0 0 co Cl) M n a) a) co N N O M cn 'i m N n N V O M m M M m ap = N O N V m N co CO O n N co N CO Co O 0 0 T M? 00 CD 0 0 LO co O N n N LO r m N a V C M. 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II 00 a CO W L L Q_ U U W cm C m c y m O 0 N (6 .0 c a) a) m c N C 2 0 oU ¢ _ L:) CL mz R' � E N O �d m c m a. ' iocncn O C o c d E c o) r- E o 0) m Q) m m m a3 > a) co C) X ¢wUaa m =Q = aa)) aa)) 0))^ ¢ W W LL (n co (n C) O N O N O O c 0 O N 0 C_ O 0 L � (a NU) (o N 0 •= L U 0 C c 0 c c "00 O. 7 c U o � c' o as II U 0 m co aU 0 N N d c:6 U) O (D N n E mC) _ CL 0 c U � c CO c O E c co 7 V 0 W -6 II � , Cc o(Uo CI N Cn O N a C0 \' acz ) O o O ) c II 5 0 O (D U r C a) O y a) C > 0 X- cr O W N Z ¢ m N Cl) N N 0 VA m X C a) E L N A O O N (n O N (1 E d E m 2009 -2010 O&M BUDGET ASSUMPTIONS REVENUE ASSUMPTIONS: Sewer Service Charge - $321 $292 Allocated to O &M $29 Allocated to Sewer Construction Total Budgeted Ad Valorem Tax $12.0 million: $3.8 Million Allocated to Debt Service Fund $8.2 Million Allocated to Sewer Construction Fund EXPENSE ASSUMPTIONS: $5.0 Million allocation for GASB 45 post retirement benefits ($2.4 Million to Trust, remainder is retiree health premiums) Retirement Expense - 2.75% decrease in rate Increases to Healthcare costs for active employees: ➢ Healthnet- 9.5% ➢ Kaiser - 2.0% Increases to Healthcare costs for retirees- 3.7% Weighted Average Administrative Overhead percentage- 117% (Of Capitalized Salary) Vacancy Factors: 3% for Salaries > 4% for Benefits N9ADMINSUP!ADMINIRATCLIFRBudget Overheads 2009- 2010.doc Y.. TOTAL DISTRICT REVENUE & EXPENSE 2009 - 2010 BUDGET (000 Omitted) . Revenues Expenses Revenues Over Expenses Total District Operations & Sewer Maintenance Construction $86,906 $61,668 $25,238 $99,86 59 74 $40,11 7 12 9 922 A!)ADMI- ISUP`AW,1IIVIRATCLIFPBudgel Overheads 2009- 2010.doc ($14,879) ,0 OPERATING AND MAINTENANCE 2008 -2009 BUDGET COMPARED TO 2009 -2010 BUDGET (000 Omitted) Revenues Expenses Revenues Over Expenses Fund Balance 06/30/10 Sewer Service Charge Rate (08M Portion Only) Total Sewer Service Charge 2008 -2009 2009 -2010 % Increase Budget Budget (Decrease) $57,031 $61,668 8.1% 58,496 59,746 2.1% 1 4 5 $1.92 NPADP,I INSUP�A DP,II P!\RATC LI FF�Bud0et Ovof heads 2009- 2010.doc $5,476 $260 $292 $311 $321 'w KEY LABOR COSTS - O&M (000 Omitted) N9ADMI ISUP'iVD1,liN1RATCLIFF1Budgot Overheads 2009- 2010.doc 2008 -2009 2009 -2010 Increase Budget Budget (Decrease) Salaries & Wages $22,895 $24,557 $1,662 Salary Vacancy Factor (640) (682) (42) Retirement 8,268 8,148 (120) Medical Insurance 5,844 6,188 344 Dental Insurance 743 716 (27) Workers' Compensation 362 628 266 Benefit Vacancy Factor (815) (830) (15) Capitalized Adm. Overhead (3,784) (3,460) 324 All Other 5,158 5,062 l� Total Labor Costs $40.32 7 2 29 N9ADMI ISUP'iVD1,liN1RATCLIFF1Budgot Overheads 2009- 2010.doc ,r .0 KEY INCREASES 2008 -2009 BUDGET TO 2009 -2010 BUDGET (000 Omitted) N: ADP ,IINSUPaADP,IIN�RATCLIFFI©udget Overheads 2009- 2010.doc Dollar Increase (Decrease) 7o Increase 2008 -2009 Budget $58,496 Salaries (Includes 3% vacancy 1,620 7.3% factor) Benefits (Includes 4% vacancy 676 4.3 factor) Chemicals (67) (4.0) Utilities (1,309) (19.8) Repairs & Maintenance 46 1.4 Hauling & Disposal 6 .6 Professional & Legal 91 15.3 Outside Services (191) (7.7) Self Insurance 533 62.7 Materials & Supplies 47 2.5 All Other (203) (9.6) 2009 -2010 Budget $59,745 2.1% N: ADP ,IINSUPaADP,IIN�RATCLIFFI©udget Overheads 2009- 2010.doc 1 DEBT SERVICE FUND 2009 -2010 BUDGET (000 Omitted) Revenue $3,860 Debt Service Interest Expense 1,321 Principal Payments 2,539 TOTAL $3,860 N: WDRIINSUP\ADMINIRATCUFF\Budget Oveiheads 2009- 2010.doc r f Agenda Item 9 GRAYSON CREEK REW EMERGENCY REPAIR DP 7278 MAY 21, 2009 lwol Mr ' - � y y COUIN� C IMHOFF DRVIE -� QUARRY — 1 hQ I �h O KIEWITT PROPERTY �1 s 2 N f n J d od H 4 e « L ( • 1 J 191 D � y h'� t _ REPAIR STATUS • NOTIFICATIONS: - Courtesy notification has been given to Regional Board - Notified Customers of system shutdown - Permits have been submitted to County Flood Control and Public Works - General Manager has declared an emergency N r. REPAIR STATUS • Mobilized C.Overaa to install temporary bypass • Retained CPS, Structural Consultant, to prepare engineering forensics and failure analysis • Preparing a plan for system restart of temporary repair MISCELLANEOUS • Notified the Design Consultant — MWH • Notified the Installation Contractor — GSE • Notified the Resident Engineer /Inspector — GS Dodson • Researching construction records • Inspected REW bridge crossing at Chilpancingo • Looking at ways to inspect other bridge crossings Pictures of on -going repair Pictures of on -going repair ,rte Y: Y i' 6 Pictures of on -going repair SCHEDULE • Temporary repair complete today • Service restored by tomorrow morning • Preliminary Failure Evaluation underway • Permanent repair may take several months 9 COSTS • Preliminary guestimate for least expensive repair - $250,000 QUESTIONS 10