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HomeMy WebLinkAboutAGENDA BACKUP 12-14-1978December 12, 1978 VI. O8 1 1211417E MEMORANDUM TO: THE HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: Roger J. Dolan, General Manager -Chief Engineer SUBJECT: AUTHORIZATION FOR GENERAL MANAGER - CHIEF ENGINEER TO EXECUTE JOINT POWERS AGREEMENT FOR WORKERS' COMPENSATION INSURANCE ISSUE: The California Association of Sanitation Agencies is sponsoring the creation of a Joint Exercise of Powers Agreement for the purpose of providing a self- insurance program for workers' compensation coverage for participating members. BACKGROUND: Assembly Bill 840 was enacted into law on September 30, 1978. A.B. 84 establishes workers' compensation regulations which are to be administered by the Director of Industrial Relations and provides that any public entity wishing to self - insure for workers' compensation after January 1, 1979 must submit a formal applica- tion and provide evidence of security. The following course of action was established by the CASA District Managers' Committee: 1. In the interest of establishing a Joint Powers Agreement (JPA) prior to January 1, 1979, and thereby avoid the more stringent filing and security requirements, a JPA is to be prepared. 2• Districts are to present the JPA to their Board of Directors during December. The JPA is to be signed by December 31, 1978. 3. The self - insurance program under the JPA is to be implemented as of July 1, 1979. Any District may withdraw from the JPA at any time without jeopardizing their existing insurance coverage. RECOMMENDATION: As the Joint Powers Agreement will not be received by December 14, 1978, the General Manager -Chief Engineer should be authorized to execute the agreement for the District. Respectfully submitted, alter . unasaki Finance Officer WNF :jf Reviewed By: L)[; W. C. Dalton Deputy General Manager -Chief Engineer Recommendation Approved: ger J. olan General ena r -Chief Engineer 0 r) V11. NB N. 00 9 12/]4/ December 12, 1978 MEMORANDUM FOR: THE HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: Roger J. Dolan, General Manager -Chief Engineer SUBJECT: AUTHORIZE WILLIAM RAMSAY TO MAKE A PRESENTATION AT CONSTRUCTION SAFETY SEMINAR IN SAN LUIS OBISPO ON APRIL 20, 1979 AND RECEIVE ACTUAL EXPENSES BACKGROUND: Mr. Ramsay has been asked to speak at a seminar to be held at California Polytechnic State University in San Luis Obispo in April 1979, about inspectors and their field supervision relationships with concerned representatives. He has been offered $200.00 for his services. Rather than take the $200, he would like to receive actual expenses of mileage allowance and one day per diem allowance and have the District accept the $200. RECOMMENDATION: Authorize Mr. Ramsay's attendance and payment of actual expenses. Respectfully submitted, /0/ �. A I* Jay S. McCoy Collection System Engineering and Services Division Manager JSM:WR:sf Reviewed by: W. C. Dalton Deputy General Manager -Chief Engineer Re endati proved: Roge J. olan General M nager -Chief Engineer MEMORANDUM FOR: VIA: 00 December 12, 1978 THE HONORABLE MEMBERS OF THE BOARD OF DIRECTORS Roger J. Dolan, General Manager -Chief Engineer SUBJECT: AUTHORIZE $7,500 IN SUPPLEMENTAL FUNDS TO BALANCE AND CLOSE ACCOUNTS ESTABLISHED FOR DISTRICT SEWERING PROJECT NO. 2742 ISSUE: Current incidental expenditures have exceeded previously authorized amount and supplemental funds are needed to bring account into balance for project closeout. VII. NB 8 12/14/78 BACKGROUND: Board authorized $60,000 on 8 -5 -76 for engineering and right -of -way acquisition for project. As of 11- 30 -78, 571,472.61 had been expended and December expenditures for final inspection and project closeout are estimated to be $470+, bringing the total estimated final incidental cost to $71,943. (Engineers estimate of 10 -6 -77 was $90,600). Funds were previously authorized for the contract amounting to $629,582.50 of which $625,139.38 has been expended and is inclusive of all work payable for the completed project, leaving a balance of $4,443.12 excess which may be transferred. All project funds will be reimbursed from Watershed 33 fees, previously collected. See attachment. RECOMMENDATION: Approve the supplemental $7,500.00 authorization as requested. Respectfully submitted, Jay S. McCoy Collection System Engineering and Services Division Manager JSM:sf Reviewed By: W. C. Dalton Deputy General Manager -Chief Engineer Approved by: Roger J. Dolan General Manager -Chief Engineer o� AUTHORIZATION 8-5-76 11 -17 -77 6 -1 -78 TOTAL AUTHORIZED TOTAL EXPENDED TO 11 -30 -78 ACCT. BALANCE TO 11 -30 -78 EST. EXPENDED TO 12 -31 -78 EST. ACCT. BAL, TO 12 -31 -78 EST. TO CLOSE ACCOUNTS EST. FINAL PROJ. COST (12 -78) EST. PROJ. COST (10 -6 -77) DSP 2742 AMOUNT OF AUTHORIZATION INCIDENTALS & R/W CONTRACT $60,000.00 $ 574,582.50 55,000.00 60,000.00 629,5b2.56 71,472.61 616,369.27 (11,472.61) 13,213.23 (Final Retention Pmt) 470 1 8,770.11 (11,942.61) 4,443.12 7,500.00 Transfer 71,943.00 625,139.36 90,600.00 584,9oo.00 December 14, 1978 MEMORANDUM FOR: THE HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: Roger J. Dolan, General Manager -Chief Engineer SUBJECT: SUBMISSION OF AN UNSOLICITED PROPOSAL TO THE DEPARTMENT OF ENERGY Issue: A formal action by the Board is required supporting the submission of an unsolicited proposal to the Department of Energy. Background: Additional test work is necessary prior to designing modifications to the existing multiple hearth furnaces to allow the combustion of refuse derived fuel. A 2,000 hour full scale co- combustion test would provide the information required for design of the facilities under Stage 5B -Phase II. The estimated cost of the test work is $1.9 million. Application has been made to the State Solid Waste Management Board for $1.5 million. The submission of an unsolicited proposal to the Department of Energy is expected to provide $200,0004400,000 in grant funds. An application will be made to EPA for the remaining funds. This proposal may require the District to provide 10 -25% matching funds. Recommendation: Pass a resolution authorizing the General Manager -Chief Engineer to submit an unsolicited proposal to the Department of Energy for grant funds to conduct a long term full scale co- combustion test. The resolution should state the Board's support for the project. Respectfully submitted, k hnhao n Senior E69'ineer --Project Management JAL: j Reviewed by: PAI W. C. Dalton Deputy General Manager -Chief Engineer A roved by: Roge J. olan General nager -Chief Engineer December 14, 1978 MEMORANDUM FOR: THE HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: Roger J. Dolan, General Manager -Chief Engineer SUBJECT: PILOT SCALE FILTER PRESS TESTS Issue: Authorization to expend $7,600 for a two -week pilot scale filter press test is required. Background: The Bay Area Wastewater Solids Study has identified significant cost savings associated with using filter presses to dewater the sewage sludge prior to incineration. The District has the opportunity to conduct a preliminary test for a period of two weeks to determine the merit of pressure filtration. The equipment rental cost, operator cost, and connection cost is estimated to be $7,600. The alternative, a full scale test, is estimated to cost $80,000. Application will be made to the State Water Resources Control Board to include this work under existing clean water grant work. Recommendation: Authorize expenditure of $7,600 for pilot scale ter press tests. Respectfully submitted, Jo son Senior Engineer - Project Management JAL:jv Reviewed by: W. C. Dalton Deputy General Manager -Chief Engineer A Roge ed by - J. olan General Manager -Chief Engineer -- � � VII. NB 7 12/14/78 December 12, 1978 MEMORANDUM TO: HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: Roger J. Dolan, General Manager -Chief Engineer SUBJECT: AUTHORIZATION OF $10,000 FOR THE SERVICES OF A SOUND CONSULTING ENGINEER FOR THE STUDY AND DESIGN OF A SYSTEM TO ATTENUATE THE FURNACE STACK NOISE TO ACCEPT- ABLE LEVELS Issue: Recent citizens' complaints indicate that the surrounding neighborhoods are being adversely affected by noise emanating from the furnace stack located in the solids conditioning building. Background: Recently the Phase I contractor started the furnaces in preparation for the performance tests. Local citizens' complaints indicated to District per- sonnel that the noise emanating from the furnaces was adversely impacting the surrounding neighborhoods. A preliminary study by District personnel confirms this probability. With one furnace running, the trailer court area is being impacted with sound levels of 52 dBA. A sound level of this magnitude is consid- ered by many to be objectionable during the nighttime hours. This noise level may increase as much as three dBA when the second furnace unit is started. An independent study by a noise consultant is advisable to confirm the preliminary District study. In the event of confirmation, this consultant would also be authorized to design a system to alleviate the problem. According to the preliminary District study, the prime contractor is exceed- ing the maximum decibel limits required under the contract. Therefore, every attempt will be made to recover the costs from the prime contractor. However, due to the sensitivity of the problem, it is recommended that the District expedite the solution by procuring the services of a sound consulting engineer at the earliest possible date. Recommendation: Authorization of $10,000 for the services of a sound consulting engineer or the study and design of a system to attenuate the furnace stack noise to acceptable levels. DGN:mg Reco endation App oved: Roger J D an General Manager -Chief Engineer Respectfully submitted, (-J' � J_^Q D. G. Niles Manager, Plant Operations 0o December 13, 1978 MEMORANDUM TO: THE HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: Roger J. Dolan, General Manager -Chief Engineer SUBJECT: RISK MANAGEMENT PROGRAM ISSUE: A review of the recommendations made by Warren, McVeigh and Griffin was completed by the District staff. Basic objectives of the review were to determine the cost effectiveness for the conversion to a risk management program, and to devise an objective broker selection process. BACKGROUND: To assess the effect on annual premiums which the conversion to a risk retention concept would produce, the Schroder Insurance Agency has obtained premium quotations for the property and liability coverages. These quotations have been summarized on the attached schedule in comparison with the current and prior fiscal years. The significant changes in the annual premiums reflect the retention of higher loss limits and changes to types and limits of coverage under the proposed risk management program. The major changes in types and limits of coverage are described below: Property Damage - Public Employee Blanket Bond - Under the proposed program, losses of $100,000 per occur- rence, $500,000 annual aggre- gate would be retained and ex- cess coverage up to a maximum forseeable loss of $20,000,000 would be obtained. Losses of $100,000 per occur- rence would be retained, and excess coverage to a maximum limit of $500,000 would be obtained. General and Automobile Liability Losses of $100,000 Per occur - rence , $500,000 annual aggregate would be retained and excess coverage to a maximum of $10,000,000 would be obtained. Errors and Omissions - This coverage for the Board of Directors and Officers of the District would be a new addition. Professional Liability - This coverage for the District's plan review and approval function would be a new addition. oc A self - insurance program for workers' compensation coverages under a Joint Powers Agreement with members of CASA is under study. The annual premiums shown for the current year and under the the risk management program are estimated. The premium quotation received for earthquake and flood insurance coverage appears prohibitive. The annual premiums for property coverage shown on the attached schedule do not include this coverage. The insurance broker retained by the District will perform a vital function in implementing the risk management program. Personal interviews with all three respondents to the District's requests for proposals have been completed. The following procedure for the appointment of an insurance broker to implement the risk management program is proposed: 1. The Schroder Insurance Agency will be interviewed and requested to assemble its marketing results in a formal proposal. The agency will be advised that its proposal will be reviewed in conjunction with proposals to be received from two brokers, and that appoint- ment will be determined on the basis of the proposals and the total level of services to be provided under the new program. 2. Kindler S Laucci and Kaine and McAuliffe will be provided with a copy of the risk management audit report and requested to submit proposals within 45 days. 3. The proposals from Schroder Insurance Agency and the two brokers will be reviewed by the District staff and presented to the Board of Directors by each of the three brokers. 4. The Board of Directors will appoint an insurance broker for the District. RECOMMENDATION: The marketing of the risk management program should be authorized in conjunction with the broker selection process. Respectfully submitted, Walter N. Funasaki Finance Officer WNF:mm Reviewed by: W. C. Dalton Deputy General Manager -Chief Engineer Rec men/na'ager-Chief proved: Roger J. General Engineer 00 V11, NS 2 12/14/78 December 12, 1978 MEMORANDUM FOR: THE HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: Roger J. Dolan, General Manager -Chief Engineer SUBJECT: EXECUTE CONSENT TO DEDICATIONS TO CONTRA COSTA COUNTY AT NO COST TO DISTRICT No. Job No. Tract No. Area Remarks 1. 2974 4918 Danville The roads in this tract are being widened and dedicated to the County. Some of the District easements are within this road widening area. 2. 1583/par.38 MS211 -78 W.C. 3• 1597/par.4 5027 W.C. JSM:WG:sf Hillgrade Avenue is being widened 10 feet by an offer of dedication to the County. The CCCSD has a 5 -foot easement in this area. The extension of Vernal Drive into new Tract 5027 crosses an existing 10 foot CCCSD easement. Vernal Drive is to be dedicated to the County. Respectfully submitted, h /. A* Jay S. Mc toy Collection System Engineering and Services Division Manager Reviewed y: W. C. Dal ton Deputy General Manager -Chief Engineer W ed: J. /ol n General Manager -Chief Engineer 00 VII. NB 3 12/14/78 December 6, 1978 MEMORANDUM FOR: HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: Roger J. Dolan, General Manager -Chief Engineer SUBJECT: AUTHORIZATION OF $133.50 FOR JOHN LePAGE TO ATTEND A MAINTENANCE TRAINING COURSE GIVEN BY NORTHERN TELECOM, INC. AT MOUNTAIN VIEW, CALIFORNIA FROM DECEMBER 18 THROUGH DECEMBER 21, 1978 Issue: The District requires well trained personnel in order to effectively maintain the communications system at the treatment plant facility. Background: The Phase i contractor purchased the communications equipment as manufactured by Northern Telecom, Inc. Under the terms of the contract, plant personnel have been trained in the operation of this equipment. The training of maintenance person- nel for this equipment was not a requirement of the contract. This equipment utilizes a sophisticated computer system to operate the entire communications package. At present, District personnel have not been properly trained in the maintenance of this entire system. Attendance by Mr. LePage at this four day "hands -on" training program will alleviate this problem. Recommendation: Authorization of $133.50 for three days' per diem for John LePage to attend the PULSE* training course given by Northern Telecom, Inc. at Mountain View, California from December 18 through December 21, 1978. DGN:mg Re endation Ap roved: Roger J. D ]an General M ager -Chief Engineer Respectfully submitted, G. Niles Manager, Plant Operations 00 V11. 00 NB 4 12/14/7E December 4, 1978 MEMORANDUM TO: HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: Roger J. Dolan, General Manager -Chief Engineer SUBJECT: LIGHTING FOR WAREHOUSE Issue: The warehouse purchased from Peterson - Simpson requires additional lighting. Background: The Peterson-Simpson warehouse purchased in 1977 has been converted to provide storage and inventory control of plant equipment, spare parts, and supplies. Plant personnel are presently occupying this building, and additional lighting is required. It is planned to purchase the required fixtures and install them by plant maintenance personnel. Recommendation: Authorization of $500 for the purchase of 30 fluorescent fixtures from the plant construction fund. DGN :mg A ndation Approved: A&C.— 6 Do an General Manager -Chief Engineer Respectfully submitted, D. G. Niles Manager, Plant Operations 00 V11. 00 NB 5 12/14/78 December 14, 1978 MEMORANDUM FOR: THE HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: Roger J. Dolan, General Manager -Chief Engineer SUBJECT: AUTHORITY TO INVEST RUNNING EXPENSE FUNDS ISSUE: Environmental Quality Charge funds and taxes collected to December 10, 197$ for the 1978 -79 fiscal year will be paid or credited to the District in the next two weeks. Short term investment of the E.Q.C. collection is planned. BACKGROUND: Prior to 1976 -77 we were unable to invest Running Expense Funds because the County advanced operating money to us from July through December. With the advent of the E.Q.C. we are no longer eligible for such a no- interest loan and have rearranged our cash flow to balance income and expenditures. We receive E.Q.C. Funds collected after the delinquency dates of December 10 and April 10 each year with a final balancing payment in June or July. We estimate that $2,000,000 to $3,000,000 can be invested for 1 to 3 months and net over $40,000 in interest for the District. RECOMMENDATION: Authorize the transfer of the E.Q.C. collection total from the Running Expense Fund to the Sewer Construction Fund for short term investment and the return transfer when needed to meet operating obligations. Respectfully submitted, U�_e� W. C. Dalton Deputy General Manager -Chief Engineer WCD:rm Reco endation 3Ap o wed: Roger J. D an General Pianager -Chief Engineer 0 0 VII. NB 6 12/14/78 December 12, 1978 MEMORANDUM FOR: THE HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: Roger J. Dolan, General Manager -Chief Engineer SUBJECT: WASTE DISCHARGE REPORT FILING FEE ($1,000) ISSUE: Renewal of our National Pollutant Discharge Elimination System (NPDES) permit. BACKGROUND: The District's NPDES permit has a terminal date of July 1, 1979 and application forms for renewal with the filing fee of $1,000 must be submitted to the Regional Water Quality Control Board by December 31, 1978. The application is ready for submittal. The fee was not specifically budgeted. RECOMMENDATION: Authorize payment of NPDES permit application fee of $1,000 from the Sewer Construction Fund. Respectfully submitted, W. C. Dalton Deputy General Manager -Chief Engineer WCD :rm Recommendation pp r ved: oger Do an Gener 1 Manager -Chief Engineer December 6, 1978 MEMORANDUM TO: THE HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: Roger J. Dolan, General Manager -Chief Engineer SUBJECT: RISK MANAGEMENT PROGRAM ISSUE: Recommendations made by Warren, McVeigh and Griffin, risk management consultants, in their audit report have been reviewed by the District staff. The results of the review to -date are reported below. BACKGROUND: The basic recommendation made by Warren McVeigh and Griffin for the retention of routine property, liability and Workers' Compensation losses, and the purchase of broad excess insurance above the retained levels is endorsed by the staff. The risk retention limits recommended are: Property - $100,000 per occurrence, $500,000 annual aggregate Liability - $100,000 per occurrence, $500,000 annual aggregate Workers' Compensation - $100,000 per occurrence Procedural recommendations made by the risk management consultants to imple- ment a risk management program for the District should be accepted. These are: 1. Select a broker to market the proposed insurance program. 2. Submit regular reports on the risk management program to the Board of Directors. 3. Maintain records of losses, premiums, values, and policies in- house. 4. Analyze all contracts entered into by the District from the risk management standpoint prior to execution. 5. Establish $500,000 to $1,000,000 minimum insurance limits for parties con- tracted with. 6. Include safety as part of the risk management function. In order to assess the cost affectiveness of the conversion to a risk retention concept, the Schroder Insurance Agency was directed to obtain premium quotations for the property and liability coverages. Preliminary quotations from underwriters have been obtained for the property coverages and are summarized on the attached exhibit; firm quotations will be received by December 14, 1978. Premium quotations for the liability coverage will also be obtained by December 14, 1978. The exhibit will be updated with these final quotations and will present a comparative analysis of the annual premium and coverage terms under the risk retention program and the current insurance program. 0 0 The preliminary property insurance premium quotations obtained from underwriters indicate the effect of changes in the coverage terms under the risk retention program. These changes are summarized below: 1. Plant and equipment are insured on a replacernent cost basis at a maximum forseeable loss amount of $20,000,000. The coverage has been broadened to an all -risk basis. 2. Boiler and machinery coverage has been expanded to include mechanical and electrical equipment. 3. Comprehensive automobile coverage has been deleted. 4. Specialized data processing coverage is added. 5. Coverage against fraudulent or dishonest acts of employees was increased from $20,000 to $500,000. Although recommended by the risk management consultants, earthquake and flood coverage for plant and equipment and underground pipe is probably not justified in view of the high premium for coverage and the availability of federal assistance in the event of a disaster. The Federal Disaster Act provides that upon declaration that an area has suffered a disaster, the federal government will assist in restoring property owned by a political subdivision. Most political subdivisions do not insure against earthquake or flood loss unless required by contracts, bond issues or other unique circumstances such as proximity to a hazardous area. The quotation for property coverage to be obtained by December 14 will identify the cost of earthquake and flood insurance and will permit a final determination of the staff position for this coverage. In a previous report to the Board of Directors, it was the staff recommendation that further consideration of self- insurance of workers' compensation be deferred, as the District's premiums and claims volumes were insufficient. However, recently enacted legislation which was signed into law on September 30, 1978, Assembly Bill 840, has prompted consideration of the creation of a Joint Exercise of Powers Agreement by members of the California Association of Sanitation Agencies for the purpose of providing a self- insurance program for workers' compensation. Assembly Bill 840 establishes workers' compensation regulations which are to be administered by the Director of Industrial Relations. The act provides that all political subdivisions of the State, including each member of a pooling arrangement under a Joint Exercise of Powers Agreement, must secure from the Director of Industrial Relations a certificate of consent to self- insure against workers' compensation claims by furnishing proof of ability to administer claims properly. Any public entity wishing to self- insure for workers' compensation after January 1, 1979 must submit a formal application and provide evidence of security. At a recent CASA District Managers' Committee meeting called to consider creation of the Joint Exercise of Powers Agreement, the following course of action was determined: 1. In the interest of establishing a JPA prior to January 1, 1979, and thereby avoid the more stringent filing and security requirements, a draft JPA is to be prepared. 2. Districts are to present the JPA to their Board of Directors during Decem- ber. The JPA is to be signed by December 31, 1978. 0 a 3. The JPA and Assembly Bill 840 are to be reviewed at the January 19, 1979 CASA General Managers and Directors meeting. 4. The self - insurance program under the JPA is to be implemented as of July 1, 1979. Any District may withdraw from the JPA at any time. It is uncertain as to whether a District may join the JPA after December 31, 1978 without satisfying the more stringent requirements imposed by A.B. 840. Marsh and McLennan, the sponsoring insurance broker, indicated that a minimum combined premium volume of approximately $300,000 would be necessary from partici- pating Districts in order to justify self- insurance under the JPA. SUMMARY & RECOMMENDATION: Property Coverage - The preliminary quotations received indicate that the annual total premium under the risk management program will be slightly less than the premium for the 1978 -1979 year under the present coverage. The decision regarding implementa- tion of this portion of the risk management program should be deferred to December 14, 1978. Liability - The premium quotations have not been completed by under- writers, but will be received by the December 14, 1978 Board of Directors meeting date. The risk management program for liability coverage should be deferred until the quotations have been received. Preliminary indications received are that the premiums will be substantially lower than 1978 -79. Workers' Compensation - The JPA should be entered into by December 31, 1978. A resolution requesting authority for the General Manager - Chief Engineer to sign the JPA will be presented for approval on December 14, 1978. Further review of the merits of the pooled self- insurance program should be undertaken as the program is developed by Marsh & McLennan and final Board decision can be made in Spring 1979. Respectfully submitted, /..., 'dasc.- ..cf.% Walter N. Funasaki Finance Officer WNF:jf Reviewed by: W. C. Dalton Deputy General Mgr. -Chief Engineer Rec Wmendat' n A proved: Rog e Gene r -Chief Engineer