HomeMy WebLinkAbout03.a. Follow-up to questions asked at the February 25, 2019 meeting regarding certain check expenditures Page 1 of 3
Item 3.a.
CENTRAL SAN
March 26, 2019
TO: FINANCE COMMITTEE
FROM: PHILIP LEI BER, DIRECTOR OF FINANCEAND ADMINISTRATION
REVIEWED BY: ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: FOLLOW-UP TO QUESTIONS ASKED AT THE FEBRUARY25, 2019
MEETING REGARDING CERTAIN CHECK EXPENDITURES
At the February 25, 2019 Finance Committee meeting, Committee members inquired about certain
expenditures. This memo presents a response summary to those questions.
1) Page 9, Check#222563 -- $134,215.86 to Stericycle Environmental
The Committee wanted to know why they are five months behind on their billings.
Response:
Stericycle has historically been a month or two behind in their billing, but in this case they were having
staffing issues which delayed them from issuing invoices. Central San received and approved the August
invoice in the middle of November; and the September, October, and November invoices in January. The
December invoice was received and approved in February. The January invoice was received and
approved in March.
2) Page 23, Check#222694 -- $9,491.18 (Procurement card (P-card) purchase)
The Committee requested information regarding a P-card item for a tool kit and pipe fittings.
Response:
Items were purchased by M. Mahoney for a total of four work orders:
From Grainger: Copper Press Tool Kit, press rings, lifting slings
From Microcool: Variable Frequency Drive
From Pittsburg Winnelson: Copper pipe fittings
From Bay Area Industrial Vehicles: A controller, solenoid, and diode.
3) Page 56, Check#38889 -- $60,062.75 to Roto-Rooter Sewer Service
It was noted that the underlying invoices were for potholing work in connection with the Walnut Creek
Sewer Renovations, Phase 13 project. The Committee sought additional information as to what was
included in the $325 hourly rate.
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Response:
Regarding the $50,000 limit: Roto-Rooter notified Central San (prior to exceeding the limit)that the
potholing was going to exceed the Release amount, as stated in the Agreement. Central San's Capital
Projects Manager authorized an additional amount of $12,000, see attachment. Normally this is attached to
the invoice; however, in this case, the Capital Projects Manager signed the invoice and noted that the
exceedance was authorized to avoid delaying payment. As for why the additional cost was warranted,
several utilities were mis-marked during Underground Service Alert (USA) marking and Central San
needed the information for the project. This Walnut Creek project phase project has a lot of open trench
and relocation of sewer mains, and it is more cost effective to find out now compared to when a contractor
trenches. The attachment should have been sent with the invoice; this has been addressed with staff.
Regarding the hourly rate of $325: This rate covers the following costs: labor(two laborers and one
supervisor); traffic control; equipment to pothole; and disposal. The work is tracked when the contractor
breaks ground until they reach and expose the utility. Central San's Capital Projects Division will have
either a staff member or inspector on site to verify the work. Backfill and paving is covered under a
separate item to meet each City's varying requirements. This rate was bid in 2016 and, in comparison,
other responders at that time were in the range of$400 per hour.
Strategic Plan Tie-In
GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility
Strategy 2- Manage costs
ATTACHMENTS:
1. Roto-Rooter Authorization
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Central Contra Costa Sanitaty Dlshict
Protecting public health and the environn7ent 5079 Imhoff Place, Martinez, CA 94553-4392
PHONE: (925)228-9500
FAX.- (925)372-7892
www.centralsan.orn
RELEASE NO. 8.1 ROGERS.BAILEY
CONTRACT AGREEMENT General Manager
NO. 2016-01 KENTONL.ALM
Counsel for the District
WITH (510)375-4571
ROTO-ROOTER SEWER SERVICE KATIE YOUNG
Secretary of the District
Contractor shall perform the following work, in accordance with all terms, conditions, and
specifications of Contract Agreement No. 2016-01:
Description of Work: Additional potholing efforts required at various sites.
Storm drain on Creekside Drive SSE due to inaccurate
locating, water mains at Norris Road SSE and Hillview
Drive due to incorrect USA markings by EBMUD.
Location of Work: Walnut Creek— Creekside Drive, Norris Road SSE and
Hillview Drive
Time Schedule: Work in Progress
District Representative: Amy Hernandez Aragon — (925) 229-7113
Damasio Zepeda — (925) 229-7332
Contractor Representative: Larry Fitch — (925) 939-3100
Cost (Not to Exceed): $12,000
CENTRAL CONTRA COSTA SANITARY DISTRICT
By: Date: (Z #I /
d ar J. Lopez
Capital Projects Division Manager
AH/Ij
ecc: A. Hernandez, D. Zepeda Aragon — Central San
cc: Blanket File.3.4.2, 8455.3.4
PACapitalProjects\Blanket Contracts\Releases\Pothole\2016-01\Release 8.1.docx REV 0 05
Recycled Paper
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