HomeMy WebLinkAbout08. Contributed Assets Value•
Central Contra Costa Sanitary District
August 20, 2014
TO: FINANCE COMMITTEE
FROM: DANEA GEMMELL, ENVIRONMENTAL SERVICES DIVISION MANAGER
SUBJECT: PROCESS TO DETERMINE CONTRIBUTED ASSETS VALUE
Tammy Fong provided a summary of the process of calculating contributed assets.
During the final plan review stage for mainline jobs that come through Environmental
Services Development, staff requests a copy of the written (signed) contract between
the contractor and developer that includes a cost breakdown of quantities, descriptions
and prices. Staff double- checks the cost breakdown for mathematical accuracy and
confirms both quantities and descriptions correctly match the final plans. Additionally,
staff checks to see that the prices are in line with what was seen in the recent past for
the similar items /type of work done. From this cost breakdown, the appropriate project
security amount is determined in order for the developer to obtain a bond. The District
requires a bond for items that will become District assets, such as mainline sewer pipes
and manholes. The line item cost information is ultimately entered onto the Contributed
Assets spreadsheet (on a sheet labeled "Contract "), which uses all the information to
not only calculate cost totals, but also to calculate an average unit cost for each
category (PVC SDR -26 pipe, manhole, etc.) over all the Jobs listed on the sheet.
Sometimes contractors, working on smaller mainline jobs, will provide the District with a
detailed description of the work and a lump sum cost rather than a unit cost breakdown.
In these situations, the quantities and item description information is entered into the
Contributed Assets spreadsheet on a sheet called "Estimated ". The "Estimated" sheet
uses the average cost of a category from the "Contract" sheet to determine the value of
the items installed.
DSG/TF:sdh
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