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HomeMy WebLinkAboutBOARD MINUTES 08-04-88 127 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON AUGUST 4,1988 The District Board of the Central Contra Costa Sanitary District convened in a regular meeting at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 3 :00 p.m. on August 4, 1988. President Rainey called the meeting to order and requested that the Secretary call roll. 1. ROL L CAL L PRESENT: Members: Boneysteele, Dalton, Clausen, Rainey ABSENT: Members: Carl son Member Carlson entered the meeting at the hour of 3:06 p.m. II. PUBLIC COMMENTS None III. APPROV AL OF MINUTES 1. MINUTES OF JULY 6, 1988 It was moved by Member Boney steel e and seconded by Member Cl ausen, that the minutes of July 6, 1988, be approved as presented. There being no objection, the motion was approved with Member Carlson being absent. 2. MINUTES OF J UL Y 7, 1988 It was moved' by Member Boneysteel e and seconded by Member Dal ton, that the minutes of July 7, 1988, be approved with the following additi ons: Under Item XI., SOLID WASTE, the following was added beginning with the first sentence in the third paragraph on page 7: "Member Boneysteele indicated that Valley Disposal's rates had increased at a rate of 9.0 percent per annum since 1980, whereas, the CPI had only increased at a 4.9 percent rate. Fuel costs had actually decreased si nce 1980 and Valley has negotiated favorable labor contracts." And the follow i ng was inserted i n the first sentence of the fifth paragraph on page 8: "Following deliberation, during which Member Boneysteele noted that, should Pleasant Hill Bay Shore and Orinda-Moraga interests prevail in their litigation concerning control of Acme Fill Corporation, the two together would continue to control Acme Fill." There being no objection, the above motion was approved with Member Carlson being absent. IV. CONSENT CALENDAR With regard to Item 5, Member Clausen urged staff to attempt to find the necessary funds in the current year's budget to cover the expense. It was moved by Member Cl ausen and seconded by Member Dal ton, that the Consent Calendar, consisting of five items, be approved as recommended, resolutions adopted as appropriate, and recordings duly author iz ed. 1. Resolution No. 88-105 accepting an easement at no cost to the District from BLACKHAWK CORPORATION, San Ramon area (Job 4501 - Parcel 2) was adopted and recording authorized. Motion approved on the following vote: 08 0 4 , 8 8 ~. ' ,. ;. :-.'~: .r ,!. .-- .. ,. '. , . " ., ".<. I< . . '. 128 AYES: Memb e rs: Cl ausen, Da 1 ton, Boneysteel e, Ra i ney NOES: Members: None ABSENT: Members: Ca rl son 2. Resolution No. 88-106 accepting an easement at no cost to the District from BLACKHAWK CORPORATION, San Ramon area (Job 4501 - Parcel 4) was adopted and recording authorized. Motion approved on the following vote: AYES: Members: Cl ausen, Da 1 ton, Boney steel e, Rainey NOES: Members: None ABSENT: Members: Carl son 3. Quitclaim Deed to Kilpatrick Partners, Job 1162, was approved, the Presi dent of the Board of Di rectors and the Secretary of the District were authorized to execute and record said Quitclaim Deed, and Resolution No. 88-107 was adopted to that effect. Motion approved on the following vote: AYES: Members: Cl ausen, Dalton, Boneysteel e, Ra i ney NOES: Members: None ABSENT: Members: Ca rl son 4. A hearing date of September 1, 1988, was established to consider the forfeiture of $225.22 of All Star's $1,000 cash deposit and $1,000 of Silva and Silva Underground's $1,000 cash deposit; the Secretary of the District was instructed to give All Star and Silva written notice ten calendar days in advance of the date of the hearing where the Board will consider the declaring of a forfeiture of their contractor's cash deposit. Motion approved on the following vote: AYES: Members: Cl ausen, Dalton, Boney steel e, Rainey NOES: Members: None ABSENT: Members: Ca rl son 5. Authorization was given for David Williams to attend the Water Pollution Control Federation Annual Conference in Dallas, Texas. Motion approved on the following vote: AYES: Membe rs: Cl ausen, Da 1 ton, Boneysteel e, Rainey NOES: Members: None ABSENT: Members: Ca rl son Member Carlson entered the meeting at the hour of 3:06 p.m. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None V. ENGINEERING os ADOPT A RESOLUTION OF NECESSITY, APPROI E A PROPERTY EXCHANGE AGREEMENT WITH CONTRA COSTA COUNTY, AND APPROVE ALLOCATION OF $274,900 FOR lHE PURPOSE OF AMENDING AN EMINENT DOMAIN ACTION TO Aco.UIRE PROPERTY RIGHTS FOR lHE SAN RAMON V ALLEY INTERCEPTOR, : ~, ,,: PROO ECT, 4224 ",,:"~i'" ,;:,.:""" 04 '88 1. ',::;;:,,~, ';',/ 129 Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that this item deal s with acquisition of property rights for Parcel 32 for the San Ramon Valley Interceptor Project. Mr. Dolan directed the Board's attenti on to the i ndexi ng of credits for future property rights to reflect the changing value of real property. Mr. Dolan stated that this indexing is actually based on the prime rate. A discussion followed concerning the means of indexing and the circumstances of this particular case. In response to a question from Mr. James L. Hazard, Counsel for the District, Ms. Joyce E. McMillan, Secretary of the District, stated that no written requests to appear and be heard have been received. Based on the finding by the Board of Directors that the costs for acquisition of the easement plus severance damages would be equal to the value of the whole, it was moved by Member Carlson and seconded by Member Dal ton, that Resoï uti on No. 88-108, a resol uti on of necessity authoriz ing amending the eminent domain action from acquiring easement rights to acquiring fee title to Parcel 32 for the San Ramon Valley Interceptor, Project 4224, be adopted conditioned on the approval by the Contra Costa County Board of Supervisors of the property exchange agreement; that the President of the Board of Directors be authorized to execute the property exchange agreement with Contra Costa County; and that allocation of $274,900 from the Collection System Program Contingency Account to Di strict Proj ect No. 4224 be approved. Motion unan imously approved on the following vote: AYES: Members: Carl son, Dalton, Boneysteel e, Cl ausen, Rainey NOES: Members: None ABSENT: Members: None 2. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO. EXECUTE AN AGREEMENT WITH JOHN CARQLO ENGINEERS FOR PREL IMINARY DESIGN WORK ON THE SLUDGE/ ASH HANDLING PROO ECT <DP 20071> Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that the Sludge/Ash Handl ing Project is an effort to protect the District's interests against the eventual closure of Acme Fill and to provide a reliable sludge disposal process in the event both incinerators are out of operati on. Following discussion, it was moved by Member Dalton and seconded by Member Clausen, that the General Manager-Chief Engineer be authorized to execute an agreement with John Carollo Engineers for prel iminary design work on the Sludge/Ash Handling Project <DP 20071) for $85,000. There being no objection, the motion was unanimously approved. VI. APPRCN AL OF EXPENDITURES 1. . EXPENDITURE LIST DATED AUGUST 4, 1988 Member Dal ton, member of the Budget and Finance Committee, stated that he and Member Boneysteele reviewed the expenditures and found them to be satisfactory. It was moved by Member Dal ton and seconded by Member Boney steel e, that the Expenditure List dated August 4, 1988, including Self-Insurance Check Nos. 100289-100293, Runni ng Expense Check Nos. 40629-40915, Sewer Construction Check Nos. 6015-6079, and Payroll Check Nos. 13828-14132, be approved as recommended. There being no objection, the motion was unanimously approved. VII. BUDGET AND FINANCE 1. RECEIV E FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 1988 Mr. Walter N. Funasaki, Finance Officer, distributed revised Financial Statements for the year ended June 30,1988, and explained that actual expenses were $64,000 less than stated on the financial statements ." 08' 04 88 '.~';'(~ ':.~.,t/,,':;'.;.,;: ~, I, , 130 previously distributed to the Board. Mr. Funasaki stated that the $64,000 reduction in expenses was the resul t of rev iew of small sewer 1 ine and storm damage capital projects and the discovery that material costs had not been capital ized to the projects but instead had been expensed. Consequently, capital project costs increased by the same amount. All other figures reported in the financial statements remained the same. Mr. Funasaki compared the actual Operations and Maintenance <O&M) revenues and expenses to budgeted O&M revenues and expenses for the fiscal year ended June 30, 1988, noting that expenses exceeded revenues by a net unfavorabl e bal ance of $83 ,000 representi ng a 1.4 percent variance, after transfer of $542,000 to the Sewer Construction Fund to cover the cost of equipment purchases for the fiscal year. Revenues were underreal ized by $90,000. Operating expenses netted to $7,000 less than budget. Mr. Funasaki reported that the District's temporary investments were held in collateralized certificates of deposit, bankers acceptances, and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 7.90 percent to 6.55 percent. The latest interest rate at June 30, 1988 was 7.55 percent. The average yield for the LAIF account through' June 30, 1988 was 7.95 percent. Di scussi on followed concerni ng Concord sewer serv ice charges, commerci al serv ice revenues, wages and benef its, accrued compensated absences, and memberships. ' 'Mr. Jay McCoy, Construction Division Manager, reviewed the Dewatering Project, District Project No. 3791. Mr. McCoy highlighted data from the Capital Project Summary Report. Mr. McCoy reported that the estimated total project cost is $10,700,000, of that $1,900,000 has been expended as of June 30, 1988. Mr. McCoy introduced Mr. Munawar Husain, Associate Engineer, who showed sl ides highlighting the project work completed thus far. At the conclusion of the reports, President Rainey declared that the Financial Statements for the year ended June 30, 1988, were duly received. 2. RECEIV E THE FISCAL YEAR~ END REPORT YEAR 1987/1988 CAPITAL IMPROVEMENT PROGRAM Mr. Dolan, General Manager-Chief Engineer, introduced Mr. James Coe, Associ ate Engi neer, who prov ided the year-end report of the Capital Improvement Budget (CIB). Revenues for the year ended June 30,1988 were $18,962,000, which is slightly over 100 percent of projected revenues of $18,800,000. Expenditures for capital improvement projects were $4,816,000 less than pr.ojected, representing a 17 percent favorable variance.' Actual expenditures over revenues resulted in a 50 percent positive impact on cash flow. Mr. Coe reported that 36 capital projects were completed during the fiscal year, representing a net capital investment of $17.7 million to the District. Discussion followed concerning annexation charges and the Soldier Pile Installation Project. Member Boneysteele and President Rainey commended staff on the development ánd impl ementati on of the Capital Improvement Budget and reporting system, Members Clausen and Carlson for their input through the Capital Projects Committee, and Member Clausen for the initial idea. Mr. Dol an thanked the Board for thei r attention, input, and review of the Capital Improvement Budget and system. President Rainey decl ared that the Fiscal Year 1987/1988 Capital Improvement Budget Year-End Report was duly received. ~. CONSIDER SUSPENSION OF INVESTMENTS IN COLLATERALIZED CERTIFICATES OF DEPOSIT AND BANKERS ACCEPTANCES AS PERMISSIBLE INVESTMENTS AND'THEIR REPLACEMENT BY GOI ERNMENT SECURITIES Follow ing expl anation by Mr. Dol an, it was, moved by Member Boneysteele and seconded by Member Dalton, that in the view of the Board of Di rectors, investment in coll ateral ized certif icates of deposi t and ',;' ':'0'; 8', ""0" 4', "88 'f"', ,i,"';' ," ,', )", , " .' ~' ';, . .,,' ': i 131 bankers acceptances is considered to be inconsistent with the District's investment policy in today's economic and financial environment, that staff be directed to notify the County Treasurer's Office to suspend investing District funds in collateralized certificates of deposit and bankers acceptances untll further notice, and to di rect that funds be invested' in one-year Treasury Bills and two- or th ree-year Treasury Notes in their stead; and the investment policy be revised to permit maturities beyond one year for two- or three-year Treasury Notes. There being no obj ecti on, the motion was unanimously approved. President Rainey again expressed appreciation to Member Boneysteele for this prudent suggestion. VIII. sa. ID WASTE 1. PRESENTATION CONCERNING TRANSFER STATION PLANS A. Acme Fill Corporation Following introduction by Mr. Dolan, General Manager-Chief Engineer, Mr. Tom Reilly, Director of Operations at Acme Fill Corporation, addressea the Board concerning the Acme transfer station pl ans. Mr. Reilly distributed a document entitled "Acme Fill Waste Recovery and Transfer Station" and used a sl ide presentation to review the information contained in the document. Mr. Reilly stated that commitment of the waste stream is needed for the permanent transfer station. Agreements with the haulers will be needed and the franchising agencies must modify local ordinances to direct waste to the project. Mr. Reilly stated that Acme is willing to meet with staff and the Board to answer any questions. In closing, Mr. Reilly stated that Acme needs and wants the District's support for the project and hopes to obtain commitment of the waste stream to the project. In response to a question from Mr. Dolan, Mr. Reilly indicated that the Department of Health Services responded on the final closure plan that they did not want any activ ities to take pl ace on the north parcel during the period of closure. Presentations were made at the hearing in July detail ing the need and desire for putting an interim transfer station on the north parcel. The Department of Health Services commented that they understood the need and desi re but they had some technical questions. An engineering firm representing Acme is in the process of responding to those questions. Acme now anticipates that the Department of Health Services will release their final recommendations by August 31, 1988 rather than July 24,1988. B. Valley Waste Management Mr. Sanford Skaggs, representing Valley Waste Management, addressed the Board concerning disposal of the waste after it is taken to a transfer station. Mr. Skaggs distributed a letter from Mr. Gino Scopesi, of Waste Management of North America, Inc., proposing to provide an environmentally sound sol id waste disposal capacity for eight years commencing January 1,1989. Mr. Skaggs reviewed the terms of the proposal as set forth in the letter distributed. Mr. Skaggs stated that some sort of transfer station will be necessary. The application made to Al ameda County contains several al ternatives, one of which is to haul by packer truck to Al tamont. Al ameda County will probably not permit that and will require a transfer station. It is unlikely Waste Management can provide a transfer station on an interim basis without cooperation of some governmental agency to compress the timeframe. If Waste Management does not have the transfer station, they would still be interested in providing the hauling. If Acme is not able to proceed with a transfer stati on for any reason, Waste Management woul d 1 ike to work with the District and try to create an alternative for an interim transfer station. Waste Management is definitely interested in providing a permanent transfer station facil ity and would like to present a proposal to the Board. The franchise agreements give the District the abil ity to di rect waste to a transfer station. Waste Management woul d hope that woul d be done in two phases, interim and permanent. Lastly, Waste Management requests a decision on this proposal as soon as possible and would hope that the Board could make a decision by the end of the month at the August 25,1988 Board meeting. Waste Management has no reason to ...:¡.:..o. 8':. .04'. 88 . '.:: .'~' :: . ~".' .. , , ' '. ' .. ,'. .~ ..' " 132 open permits to scrutiny or additional mitigation by Alameda County unless there is sufficient Contra Costa waste to make it worthwhlle. Today Waste Management is looking for some indication of interest from the Board of Directors that would allow staff to proceed with discussions with Waste Management. Waste Management would also hope for a favorable decision at the last meeting in August. Mr. James L. Hazard, Counsel for the District, briefly called the Board's attention to Paragraph 27 of the existing franchise agreement which deals with the responsibility of the collector to dispose of waste. Discussion followed concerning the term of the proposal, commitment of the waste stream, banking unused capacity, rate regulation, and the advance payment of $500,000. In response to questions from Board and staff, Mr. Jam'es pezzaglia, attorney representi ng Acme Fill Corporation, stated .that at the current time the Acme interim and permanent transfer stations are not linked. A topographical study is being conducted to provide information on the remaining capacity at Acme Fill. C. CENTRAL CONTRA COSTA SANITARY DISTRICT Mr. Dolan, General Manager-Chief Engineer, reviewed the concept of a recycling center on the Kiewit property which evolved to the possibility of a transfer station when it appeared that Acme was having difficulty getting their proposed transfer station approved. At this point, because of the 1 ack of time, it does not seem practical for anyone other than Acme to build an interim transfer station. Mr. Dolan reviewed options avail abl e to the District incl uding participation in the Acme interim transfer station and long-term transfer station plans, participation with Waste Management or some other party in a yet-to-be-def ined transfer station project, or participation in Acme's interim transfer station pl ans and construction of a permanent Central San transfer station to serve Central San's customers. Staff bel ieves that the most doabl e project is one in which Central San takes care of its franchisees and no one else. Taking Acme's statements at face value, one could not say that an emergency exists at this point with regard to the interim transfer station. Presumably, should the District decide to construct a, transfer station, requests for proposals would be sent out for operation including disposal of the waste. Potential operators could be evaluated in part on thei r ability to dispose of the transfer station's sol id waste. However, staff bel ieves that the District shoul d al so proceed with efforts to secure an export agreement. At this time staff is not recommending any one option, but would like to discuss this matter with the Board and receive direction. In the discussion that followed, Members Rainey and Carl son stated that should Acme fail to secure permits for the interim transfer station, Central San coul d decl are an emergency and go forward with a transfer facility on the Kiewit property. Member Clausen stated that the District's efforts would be best spent in securing an export agreement and permanent disposal site. Member Dalton suggested that the Kiewit property be placed on the market with the constraint that it be developed as a transfer station. Member Boney steel e stated that the District cannot wait any longer for the County to take action. The District must move forward to sol ve the District's sol id' waste probl em. Member Boney steel e suggested that a Board workshop be held on August 11, 1988, to consider the proposals received, prior to the regular Board meeting on August 25,1988. Mr. Hazard stated that the workshop would give others an opportunity to make presentations on the various components of a solid waste system. Mr. Dolan stated that the District must select a course of action to protect its citizens. A long-term export agreement, transfer station issues, and a permanent disposal site are all components of the sol id waste problem facing the District. Staff will develop a series of options for consideration by the Board at the August 11 workshop. '" .() 8 i 0 4>-, 8 8 133 IX. CORRESPONDENCE 1. R81UEST OF CONTRA COSTA PUBLIC MANAGERS ASSOCIATION FOR ADOPTION OF A RESQUTION AUTHORIZING CCCSD TO BE SIGNATORY TO A MEMORANDUM OF UNDERSTANDI NG TO PROV IDE A COL LECTIV E AND COOPERA TIV E EFFORT TO AVOID A SQID WASTE DISPOSAL CRISIS IN JANUARY 1989 AND APPOINTING AN ELECTED OFFICIAL AS A REPRESENTATIVE TO THE BOARD Support of the MOU was expressed. Because of Member Cl ausen' s involvement with the JPA process, President Rainey appointed Member Clausen to represent the District in activities relating to the MOU. Mr. Dol an indicated that the MOU woul d be brought back to the Board for action at the next meeting. . LETTER FROM MR. PERRY X. KREIDER, A RESIDENT OF THE CITY OF WALNUT CREEK, CONCERNING THE V ALLEY WASTE MANAGEMENT RATE INCREASE 2. The Board acknowledged receipt of the letter from Mr. Perry X. Kreider concerning the Valley Waste Management rate increase and directed staff to respond. . 3. REQUEST FROM SUPERV ISOR NANCY FAHDEN FOR COMMENTS ON THE NORTH CENTRAL COUNTY PROPOSED LANDFILLS AS . A SQUTION TO THE LANDFILL SITING CRISIS Recei pt of information from Superv isor Nancy Fahden concerni ng the North Central County proposed 1 andf ill s was acknow ledged and staff was directed to prepare a response for President Rainey's signature. 4. . , LETTER FROM MR. PAUL F. HUGHEY, DIRECTOR OF CONTRA COSTA WATER DISTRICT, CONCERNING WATER REQAMATION PROO ECT OPEN HOUSE The letter from Mr. Paul F. Hughey concerning the Water Reclamation proj ect open house was noted for the record and staff was di rected to respond. X. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None XI. REPORTS 1. GENERAL MANAGE~CHIEF ENGINEER a. Because of the 1 ateness of the hour, the presentation on Automated Mapping/Computer Aided Design was held until the August 25, 1988 Board meeting. b. Mr. Dol an, General Manager--Chief Engineer, stated that as discussed at the prev ious Board meeti ng, informati on requested under terms of the refuse collection franchise agreement was not provided. Mr. Dol an reported that he rev iewed the ci rcumstances and made the finding that'a breach of the franchise had occurred and that Pleasant Hill Bay Shore Disposal and Orinda-Moraga Disposal Service, Inc. be given 60 days to cure the breach. Letters to that effect have been sent to the còllectors. If, at the end of the 60-day period, Mr. Dol an is of the opinion that a material breach exists, the matter is automatically appealed to the Board. The Board will be apprised of any developments. c. Mr. Dolan reported that the leaky pipe at the Orinda Crossroads Pumping Station has been repaired from the inside. Excavation techniques which would minimize damage to landscaping are being discussed with contractors. Board action may be requi red depending on the estimated cost of the work and the technique selected. d. Mr. Dolan reported that the outfall is shut down and partially dewatered. Plant effluent is flowing through the channel, to the' ponds, and into Pacheco Slough. The contractor has begun work inside the pipe. e. Mr. Dolan stated that Alameda County is an important option for disposal of solid waste from Contra Costa County when Acme is full. The Alameda County Solid Waste Authority has taken the position that large-scale recycling that provides for curbside pick-up will be required for any jurisdiction which exports to Alameda Co,untý.: It is. not -:. {)Š 0'488 134 unreasonable to think that other counties may impose the same restriction. Staff wants to provide any staff work required by the Regional Recycl ingAdvisory Committ~e. If the Board wishes to take a pol icy posi ti on supporti ng recycling, staff coul d draft a resol uti on expressing commitment to 1 arge-scal e recycl ing. In the discussion that followed, Mr. Paul Morsen, Deputy General Manager, stated that letters have been sent to the collectors advising them of their responsibility under the terms of the franchise agreements with regard to recycl ing. Two recycl ing pl ans have been subm itted to date. The th i rd shoul d be presented at the next Regional Recycling Advisory Committee meeting on September 20,1988. f. Mr. Dolan announced that the liquid found over the outfall has been found to be nonhazardous and should not interfere with the progress on the Outfall Project. g. Mr. Dolan announced that the overflowing manhole on Los Arabis has been repaired. 2. COUNSEL FOR THE DISTRICT None 3. SECRETARY OF THE DISTRICT None 4. BOARD MEM3 ERS a~ The proposed recycl ing survey for Pacheco area mobile home park residents was discussed. Mr. Dolan indicated that the survey may become redundant based on the urgency of the recycling issue. Discussion followed in which Member Carlson suggested that the Pacheco area recycling program be done as. a test program and that the survey be conducted following implementation of the recycling program to allow resi dents to eval uate the program and to prov ide any comments or suggestions for improvement that they may have. The Board and staff endorsed Member Carlson's suggestion. b. Member Cl ausen reported that the proposed Sol id Waste JPA will maintain a low profile while the MOU proposed by the Public Managers Association is being considered. Work will proceed on drafting the JPA. in the event the MOU is not successful. XII. ANNOJ NCEMENTS President Rainey announced that an open house celebrating Union Sanitary District's 70th anniversary and the dedication of the Raymond A. Boege-Al varado wastewater treatment pl ant expansion will be hel d on August 16, 1988. Board Members indicated they would be unable to attend and requested that staff express their regrets. XIII. QOSED SESSION None XIV. ACTION RESULTING FROM DISCUSSION IN CLOSED SESSION None 08 .0. 88 - .,.:". 135 xv. ADJ QlRNMENT There being no further business to come before the Board, President Ra i ney adj ourned the meeti ng at the hour of 7 :32 p. m. to reconvene at 3:00 p.m. on August 11, 1988, for a Board workshop on all solid waste issues and problems facing Contra Costa County and Central Contra Costa Sanitary District. COU NTERSIG NED: ~ )) I.," . J.,..'Cllj./{II.,t.,(t.,...., Sec e ary of the Ce tral Contra Coita Sanitary District, County of Contra Costa, State of California .08':',.0.4. ,88 . ;'; .,": . ..