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Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: March 19, 2015
Subject: APPROVE CONTINGENCY PROJECT IN THE AMOUNT OF $290,000
FOR THE MARTINEZ EASEMENT ACQUISITION 2015 -18
Submitted By. Initiating Dept. /Div.:
Thomas Brightbill, Senior Engineer Engineering /Environmental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
E. Lopez, Provisional Capital Projects Division Manager
J -M Petit, Director of Engineering and Technical Services Roger S. Bailey
General Manager
ISSUE: Contingency projects larger than $100,000 require approval of the Board of
Directors.
RECOMMENDATION: Approve a contingency project in the amount of $290,000 for
the Martinez Easement Acquisition 2015 -18 Project.
FINANCIAL IMPACTS: Up to $290,000 from the Fiscal Year (FY) 2014 -15 Collection
Systems Program Contingency Account. These costs are expected to be spent over a
4 -year period.
ALTERNATIVES /CONSIDERATIONS: The Board of Directors could direct that
easement acquisition costs for projects in the City of Martinez be taken from individual
Martinez sewer renovation projects. Creating a separate easement acquisition project
would allow more accurate comparisons among sewer renovation projects in the
different locations throughout the District. Staff is currently designing the Martinez
Sewer Renovations, Phase 4 project, and did not budget for the easement acquisition
work. Additional funds would have to be budgeted to the project if the Board elects not
to approve the contingency project.
BACKGROUND: When the City of Martinez was annexed to the District in 1967, the
annexation agreement contained a provision that the City of Martinez would reimburse
the District for direct and incidental costs of acquiring easements for parcels where no
records of easements could be found. A separate project was created to track
easement acquisition costs. That project was closed at the end of the FY 2013 -14, and
a new Martinez Easement Acquisition project was not included in the 2014 -15 CIB.
Work on the acquisition of additional easements in the City of Martinez began in spring
2014 under the Martinez Sewer Renovations, Phase 4 project. During this initial work, ii
became apparent that the scope of easements required, including additional easements
unrelated to the Martinez Sewer Renovations, Phase 4 project, was larger than initially
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POSITION PAPER
Board Meeting Date: March 19, 2015
Subject: APPROVE CONTINGENCY PROJECT IN THE AMOUNT OF $290,000
FOR THE MARTINEZ EASEMENT ACQUISITION 2015 -18
estimated and that it was appropriate to create a new capital project to track these
costs.
The Martinez Easement Acquisition Project 2015 -18 is expected to conclude by June
2018 as the project will include the acquisition of additional easements after the
conclusion of the Martinez Sewer Renovations, Phase 4 project. Although there have
been no prior budgets for this project, easement acquisition costs will be moved from
the Martinez Sewer Renovation, Phase 4 project to this project. The total estimated
project cost for the current fiscal year is $290,000, estimated as follows:
Right -of -way and survey work, to date $146,000
Remaining work on Martinez 4
Right -of -way labor 52,000
Survey labor 34,000
Easement acquisition fees 38,000
Outside services, contingency 20,000
Total $290,000
Updated cost estimates for future years will be included in the FY 2015 -16 CIB. Staff
has conducted a budget analysis of the FY 2014 -15 Capital Improvement Budget (CIB)
Collection System Program and concluded that there are sufficient funds as shown in
the table below:
FY 2014 -15 Allocation Budget
CS Program
Authorized Estimated Allocations for Projects, includes
contingency
$ 18,139,000
Supplemental Board Authorizations
$ 0
Allocations Returned from Closeouts
$ 0
Total Board Authorized Allocations
$ 18,139,000
FY 2014 -15 Allocations to Date
$ 6,672,000
This Allocation for Easement Acquisition Project
$ 290,000
Remaining unallocated Budget
$ 11,177,000
The FY 2014 -15 Collection System Program estimated allocations are $18,139,000, of
which $907,000 is contingency for projects not included in the CIB. The proposed
project will be budgeted from the contingency account.
COMMITTEE RECOMMENDATION: This contingency project was presented at the
March 11, 2015, Engineering and Operations Committee Meeting. The Committee's
recommendation will be presented to the Board of Directors.
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2015 Position Paper 2015 -03 -03 draft.docx Page 2 of 3
POSITION PAPER
Board Meeting Date: March 19, 2015
Subject: APPROVE CONTINGENCY PROJECT IN THE AMOUNT OF $290,000
FOR THE MARTINEZ EASEMENT ACQUISITION 2015 -18
RECOMMENDED BOARD ACTION: Approve a contingency project in the amount of
$290,000 for the Martinez Easement Acquisition 2015 -18 Project.
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