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19 - Addendum No. 3 National Plant Services Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: October 24, 2013 Subject: Addendum No. 3 to National Plant Services Agreement for Annual Sewer Mainline Cleaning Summary Beginning in the 2012-2013 fiscal year, the District began the practice of dividing the yearly cleaning footage between the District’s contractor, National Plant Services, Inc. (NPS), and District staff in order to utilize the District’s new sewer cleaning vehicle and reduce program costs. Enclosed for Board consideration is a proposed addendum to continue the cleaning program utilizing the shared cleaning concept. As shown on the rate calculation sheet attached hereto, the District will save approximately $100,867.94 by cleaning its portion of the system in 2013-2014. Staff Recommendation The Board of Directors a pp roves Addendum No. 3 to National Plant Services Agreement in the amount of $123,891.02 Analysis With the addition of the third maintenance worker, District field crews total four men including the Maintenance Supervisor. The increase in field crew size coupled with the recent purchase of a new sewer cleaning truck (VacCon truck) gives the District the ability to perform regular sewer line cleaning. Shared cleaning saves the District substantial money and also places the National Plant Services sewer cleaning vehicles inside the District, which provides additional coverage in the event of an emergency. ITEM NO. 19 Board of Directors October 24, 2013 Page 2 of 3 The proposed addendum is for the fourth year of cleaning under the five -year contract between the District and National Plant Services. The contract is very much in the favor of the District as the pe r footage rates are very low and t he District has enjoyed a long - standing mutually beneficial relationship with the company. As per the terms of the agreement, NPS is eligible to receive an increase in their cost for service that equals March to March Consumer Price Index (CPI) for Los Angeles, Orange and Riverside Counties. The March 2012 to March 2013 CPI is 1.29%, which was added to the rates. Strategic Plan Element & Goal This item complies with the objective and strategy of Strategic Plan Element 1.0, Sewer Infrastructure , whi ch states as follows : ”Objective: Our objective is to collect and transport wastewater to meet the needs of existing and future customers. Strategy: We will do this by the careful management of the collection infrastructure using prudent planning and ma intenance, with financial strategies to maintain sufficient capacity and respond to changing regulatory demands.” Legal Review Associate District Counsel prepared and signed the proposed Addendum No. 3 as attached hereto. Environmental Review Sewer main cleaning has been previously determined by Counsel for the District to be a maintenance activity, therefore, sewer main cleaning is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) un der Section 15301 Existing Facilities as “Class 1 consists of the … maintenance … of existing public or private structures”, as further described in Section (b) as “Existing facilities of both investor and publicly -owned utilities used to provide …. sewera ge …” Financial Review The fiscal year 2013 -14 budget for sewer line maintenance/cleaning is $220,000 and to date no funds have been expended. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 24, 2013 regular Board of Directors meeting. Alternative Actions 1. Refer the matter back to staff for additional information. Board of Directors October 24, 2103 Page 3 of 3 ________________________________________________________________________ Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Reviewed by: Stacey Cuevas Finance Manager Attachments A: Addendum No. 3 B: Calculation of Approximate Costs C: Calculation of Approximate Savings D: CPI Chart Approximate National Plant Services Cleaning Cost 2013-2014 Calculations for approximate cost of Year 4 services I. Base Cleaning Size Approx Length Cost/ft CPI 2011-2012 CPI 2012-2013 CPI 2013-2014 Total 6"633 0.27 3%2.02%1.29%181.91 $ 8"303,244 0.27 3%2.02%1.29%$87,145.53 10"13,430 0.30 3%2.02%1.29%$4,288.31 12"11,210 0.30 3%2.02%1.29%$3,579.45 15"29,388 0.30 3%2.02%1.29%$9,383.84 18"17,614 0.42 3%2.02%1.29%$7,874.02 21"7,509 0.56 3%2.02%1.29%$4,475.68 24"2,239 0.67 3%2.02%1.29%$1,596.68 27"0 0.95 3%2.02%1.29%$0.00 30"30 1.19 3%2.02%1.29%$38.00 33"351 1.44 3%2.02%1.29%$537.97 Sub Total $119,101.39 II. Manhole replugging and sealing Assume 200 manholes @ $22.50/mh x 1.03 x 1.0202 x 1.0129 = $4,789.63 III. Total estimated cost $119,101.39 $4,789.63 Approximate Total $123,891.02 Approximate CMSD Cleaning Savings 2013-2014 Calculations for approximate savings of Year 4 services I. Base Cleaning Size Approx Length Cost/ft CPI 2011-2012 CPI 2012-2013 CPI 2013-2014 Total 6"0 0.27 3%2.02%1.29%-$ 8"303,930 0.27 3%2.02%1.29%$87,342.67 10"16,669 0.30 3%2.02%1.29%$5,322.55 12"10,689 0.30 3%2.02%1.29%$3,413.09 15"0 0.30 3%2.02%1.29%$0.00 18"0 0.42 3%2.02%1.29%$0.00 21"0 0.56 3%2.02%1.29%$0.00 24"0 0.67 3%2.02%1.29%$0.00 27"0 0.95 3%2.02%1.29%$0.00 30"0 1.19 3%2.02%1.29%$0.00 33"0 1.44 3%2.02%1.29%$0.00 Sub Total $96,078.31 II. Manhole replugging and sealing Assume 200 manholes @ $22.50/mh x 1.03 x 1.0202 X 1.029 = $4,789.63 III. Total estimated cost $96,078.31 $4,789.63 Approximate Total $100,867.94