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HomeMy WebLinkAboutBOARD MINUTES 08-27-87 141 MINUTES OF THE ADJ OJRNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON AUGUST 27,1987 The District Board of the Central Contra Costa Sanitary District convened in an adjourned regular meeting at its regular place of meeting, SO19 Imhoff Place, Martinez, County of Contra Costa, State of California, at 1:12 p.m. on August 27,1987. President Clausen called the meeting to order and requested that the Secretary call roll., 1. ROLL CALL PRESENT: ABSENT: Members: Boneysteele, Dalton, McNulty, Carlson, Clausen Members: None II. PUBLIC COMMENTS Presi dent Cl ausen suggested th at pub 1 i c comments be rese rved until the Sol id Waste agenda items since there are only two items on the agenda. The Board concurred. III. SOLID WASTE 1. CONSIDER THE APPLICATIONS FOR REFUSE COLLECTION RATE ,INCREASES ,BY VALLEY DISPOSAL SERVICE, INC., ORINDA-MORAGA DISPOSAL SERVICE, INC., AND PLEASANT HILL BAY SHORE DISPOSAL, AND ESTABLISH NEW COLLECTION. RATES EFFECTIVE AUGUST 1, 1987 president Clausen called upon Member Carlson to make a statement of position. Member Carlson stated for the record that he has no business connections with the franchised collectors whose refuse collection rate increase appl ications are currently before the Board for consideration. However, Member Carlson stated that he does have a business relationship with Mr. Syl Garaventa, as a developer on his behalf, and for that reason Member Carlson disqualified himself from participation in the discussion or consideration of the pass through of the July 1, 1987 Acme Fill Corporation tipping fee increase. With regard to the operations and maintenance (O&M) rate increase applications, exclusive of the pass through of the tipping fee increase, Member Carlson stated that one of the issues brought forth in the August 2S, 1987 letters from Mr. Sanford Skaggs, representing Valley Disposal Service, Inc. and Orinda-Moraga Disposal Service, Inc., concerned the 9S percent operating ratio. Mr. Skaggs indicated there was a hardship caused by the reduction in the 9S percent operating ratio because of the August 1, 1987 effective date for the new rates. Member Carlson requested that the Board consider adj ustment of the rates to cover the cost of the one month loss of revenue because of the del ay in setti ng the rates. Member Ca rl son suggested that to accomplish this adjustment, a special or extra billing be sent and that the new refuse collection rates be set on the basis of the staff recommendation. At this time, Member Carlson excused himself from the meeting. VII. CLOSED SESSION 1. SIGNIFICANT EXPOSURE TO LITIGATION Pursuant to Government Code Section S49S6.9(b), a point has been reached where in the opinion of the Board of Directors of the Central Contra Costa Sanitary Di strict on the adv ice of its Counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the District.. 2. INITIATION OF LITIGATION Pursuant to Government Code Section S49S6.9(c), on the advice of Counsel based on existing facts and circumstances, the Board of Directors 08 2'7 ,87 142 of the Central Contra Costa Sanitary District has decided to initiat~, or is deciding whether to initiate, litigation. At 1:18 p.m., President Clausen declared the closed session to discuss 1 itigation pursuant' to Government Code Sections S49s6.9(b) and (c). At 2:07 p.m., President Clausen concluded the closed session and reconvened the meeting into open session returning to Item III, Solid Waste. III. SOLID WASTE 1. CONSIDER THE APPLICATION FOR REFUSE COLLECTION RATE..INCREASES. BY VALLEY DISPOSAl SERVICE, INC., ORINDA-MORAGA DISPOSAl SERVICE, INC., AND PLEASANT HILL BAY SHORE DISPOSAL Mr. Roger J. Dolan, General Manager-Chief Engineer, introduced Mr. Wal ter N. Funasaki, Fi nance Officer, who stated that, as requested by the Board of Directors at the August 20, 1987, staff has computed the effect of impl ementi ng a rate increase excl usive of the ti ppi ng fee increase effective August 1,1987 rather than July 1,1987. Attachment III to the position paper shows that computation for Val ley Disposal and Pleasant Hil 1 Bay Shore Disposal. There is no effect for Orinda-Moraga since no i ncrease was requi red. The revenue impact for one month for Vall ey Disposal is calculated to be $68,000; and $2,000 for Pleasant Hill Bay Shore Disposal. Mr. Funasaki stated that in considering the effect of the August 1, 1987 implementation on the operating ratio of Valley Disposal, the Board should be advised that the forecasted revenue base is not incremented for growth in volume. In the Price Waterhouse report to this Board in 1983, it was recommended that a factor for growth (new customers) be i ncl uded in the forecasted revenue base. The refuse collectors argued against that procedure, indicating that elimination of a growth factor provided for 'those instances when actual expenses 'exceeded projected expenses. Mr. Funasaki stated that in Valley Disposal particul arly, it is evident that growth in vol ume will occur, and it is 1 i kel y to offset the loss of revenue of $68,000 for that one month peri ode Member McNulty questioned Mr. Funasaki concerning the basis for the 9S percent operating ratio used by the District in the rate-setting process and its application to the particular franchisees this year. Member Boneysteele provided historical perspective on the rate-setting methods used by the District during the last twenty-three years and the research and thought that resulted in the current process. Members McNulty and Clausen asked additional questions of Mr. Funasaki coveri ng the follow ing subject matters: di sall owance of the write-off of the Central Landfill investment; Valley Disposal Service, Inc.'s operating loss for the year ended June 30,1987; voting members of Acme Fill Corporation; benefits from Acme Fill to the franchisees based on the pass through of the Acme Fill tipping fee of $3.69; and difference in costs for compacted and non-compacted refuse at Acme Fill. President Clausen ordered that the three letters from Mr. Sanford M. Skaggs dated August 2S, 1987, the letter from Mr. James L. Hazard dated August 26, 1987, and' the revised Proposed Legislative Findings dated August 27,1987, be made part of the administrative record. Member McNulty requested that an explanation of the portion of the 'tipping fee increase which is being allowed by Price Waterhouse be included in the Legislative Findings. Prest dent Cl ausen Legislative Findings. At this time, ,President Clausen stated that it is appropriate that the representatives for the refuse col 1 ectors be allowed to comment on the additional information received. At 2:36 p.m., President Clausen reopened the publ ic hearing to consider the appllcations for refuse collection rate increases by Valley Disposal Service, Inc., Orinda-Moraga Disposal Service, Inc., and Pleasant Hill Bay Shore Disposal. requested definitions be included in the 08, 27 87 143 Mr. Sanford M. Skaggs, attorney for Valley Disposal Service, Inc. and Orinda-Moraga Disposal Service, Inc., requested that the Board act on the rate increase applications today, adjusting the rates'to reflect that revenues w ill be earned over an el even month peri od rather than a full year; and that the full extent of the Acme Fill tipping fee increase be passed through. Mr. Skaggs discussed as well the use of a 95 percent operating ratio, projected growth in the San Ramon Valley, apportionment of Acme Fill revenues among its shareholders, and specific objections to the Proposed Legislative Findings. Mr. Ken D. Little, attorney for Pleasant Hill Bay Shore Disposal, requested that the Board act on the rate increase appl ication and pass through of the tipping fee increase today or as soon as possible. There being no further comments, President Clausen closed the public heari ng at the hour of 3,:08 p.m. and returned the matter to the Board for consi deration. Following del iberation, it was moved by Member Dalton and seconded by Member McNulty,' that a 12.96 percent rate increase be establ ished for Valley Disposal Service, Inc., effective August 1,1987, exclusive,of the pass through of the Acme Fill tipping fee increase; that no rate increase be established for Orinda-Moraga Disposal Service, Inc., effective August 1, 1987, exclusive of the pass through of the Acme Fill tipping fee increase; and that an 8.73 percent rate increase be established for Pleasant Hill Bay Shore Disposal, effective August I. 1987, exclusive of the pass through of the Acme Fill tipping fee increase. Motion approved on the following roll call vote: AYES: Members: Dalton, McNulty, Boneysteele, Clausen NOES: Members: None .ABSENT: Members: Ca rl son Following deliberation, it was moved by Member McNulty and seconded by President Clausen, that pass through of a $3.69 tipping fee effective July 1,1987 by Acme Fill Corporation be approved effective Augúst 1, 1987, to be applied over an eleven month period. When added to the rate increases established in the preceding motion, this would result in a total rate increase of 19.48 percent for Valley Disposal Service, Inc., (Resolution No. 87-142), S.S7 percent for Orinda-Moraga Disposal Service, Inc., (Resol uti on No. 87-143), and IS .34 percent for Pl easant Hil 1 Bay Shore Disposal, (Resolution No. 87-144). Motion approved on the following roll call vote: AYES: Members: McNulty, Cl ausen, Boneysteele, Dalton NOES: Members: None ABSENT: Members: Ca rl son President Clausen instructed staff to obtain a copy of the closure plan submitted by Acme Fill Corporation to the Regional Board and to have it reviewed by staff and Price Waterhouse. It was moved by Member McNulty and seconded by Member Dalton, that a subsequent review by Price Waterhouse of the Acme Fill Corporation closure plan and revenue and expense projections be completed for use in the next refuse col 1 ecti on rate-setti ng process; that the County Sol i d Waste Commission be requested to incorporate in the Solid Waste Management Plan the guidel ines for assuring that funds obtained for cl osure and post-cl osure mai ntenance of the Acme 1 andf ill and other future landfills are properly set aside and accounted for; that the amount of closure and post-closure costs be separately identified on the collection ratepayer's billing statement described as "landfill closure costs," and be subject to review during subsequent refuse collection rate-setti ng processes to determine its conti nued appl icabil ity; that District staff be directed to accept collection rate increase applications for the August 1,1987 through June 30,1988 period from the District's franchised refuse collectors, if extraordinary financial conditions warrant an interim rate review; and that the County Sol id 0 8, 278~7 144 Waste Commission be requested to consider including in the Solid Waste Management Plan a determination of whether rates are reasonable for Acme Fill or for any other landfill that may be authorized. Motion approved on the following roll call vote: AYES: Members: McNul ty, Dal ton, Boney steel e, Cl ausen NOES: Members: None ABSENT: Members: Ca rl son President Clausen directed Counsel for the District to prepare final Findings of Fact and to submit them to the Board for final adoption at the October 1, 1987 Board meeting. A copy of the administrative record will be made available for inspection at that time. 2. TRANSFER STATION AND VEHICLES , Mr. Dolan, General Manager-Chief Engineer, stated that at the request of the Board Committee deal ing with the refuse col 1 ecti on rate increase, staff has prepared a draft letter concerning transfer station and vehicle costs. Staff would be happy to receive the Board's comments on the draft letter. Following discussion, it was moved by Member Dalton and seconded by Member McNulty, that the draft letter to the District's franchised refuse collectors concerning transfer station and vehicle costs be approved as amended to include the Board's action on the refuse collection rate increase applications. There being no objection, the motion was approved with Member Carlson being absent. IV. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None V. REPORTS 1. GENERAL MANAGER-CHIEF ENGINEER None 2. COUNSEL FOR THE DISTRICT None 3. SECRETARY OF THE DISTRICT None 4. BOARD MEMBERS None VI. ANNOJ NCEMENTS None VII. CLOSED SESSION This item was taken out of order earlier in 'the agenda. VIII'. ACTIONS RESULTING IN DISCUSSIONS IN ClOSED SESSION None 08 2'7 87 145 IX. ADJ OlJRNMENT There being no further business to come before the Board, President Clausen adjourned the meeting at the hour of 3:38 p.m. Pr ide of the Board of Directors ntr Contra Costa Sanitary District, ty of Contra Costa, State of Cal iforni a COUNTERSIGNED: ,r: í 'f. , Ij'ì,' 'j' ",' I).'~CL~" !'.//\..l,L,{":'t,'_." r tary of the Central Contra sta Sanitary District, County of Contra Costa, State of California 08 ,27 87 '." ":..'