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HomeMy WebLinkAboutBOARD MINUTES 08-12-76 852 MINUTES OF AN ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD CENTRAL CONTRA COSTA SANITARY DISTRICT TO BE A HEARING ON ' ENVIRONMENTAL QUALITY CHARGE AUGUST 12, 1976 The District Board of 'the Central Contra Costa Sanitary District convened in an adjourned regular session at the Supervisors' Chambers, Room 107, County Administration Building, Martinez, County of Contra Costa, State of California, on August 12,1976, at 7:30 P.M. President Boneysteele called the meeting to order and requested the Secretary to call roll. PRESENT: ABSENT: Members: Members: Gibbs, Mitchell, Rustigian, Allan and Boneysteele None 1. OPENING REMARKS President Boneysteele thanked the members of the audience for attending and outlined the sequence and procedures to be followed during the Hearing. II. DISCUSSION OF PROPOSED CHANGES 'TO ENVIRONMENTAL OUALITY CHARGES AS RELATED TO COMMERCIAL AND INDUSTRIAL SEWER SYSTEM USERS President Boneysteele informed the audience that the purpose of the Hearing is to determine the 1976-77 rates for commercial and industrial sewer system users. There will be discussion of the 1977-78 rates which will be based on strength of sewage discharges as well as volume. III. PUBLIC HEARING ON ENVIRONMENTAL QUALITY CHARGES AND RELATED MATTERS President Boneysteele opened the Hearing and introduced staff manage- ment, Mr. G. A. Horstkotte, General Manager-Chief Engineer, Mr. W. C. Dalton, Deputy General Manager-Chief Engineer, Mr. John J. Carniato, Counsel for the District and Mr. John A. Bohn, Special Counsel for the District. He also introduced Mr. Ron Sieger, Project Engineer, Brown and Caldwell and Mr. Mike Verlander, Revenue Consultant, Brown and Caldwell. PRESENTATION BY GENERAL 'MANAGER-CHIEF ENGINEER a. Mr. Horstkotte stated that when the District started in 1946, there were 40,000 people and it had an assessed valuation of $24,000,000. Since that time, the area has grown at a dramatic rate. At the beginning, the District was able to get by with primary treat- ment. However, as a result of the passage of the Clean Water Act in 1970, the District received certain requirements that had to be met to continue water treatment. Following this, the District engaged the staff of Brown and Caldwell to advise us of procedures in achieving this end. One of the requirements of the program is that once Federal Funds are obtained, a revenue program has to be adopted to take care of the mainten- ance and operation costs. It is for this reason that it became necessary to establish an Environmental Quality Charge. Inasmuch as the federal pro- gram is based upon volume and strength, we are having this meeting tonight with the commercial and industrial users in order that they may become more informed thereby enabling them to budget for this expense. President Boneysteele thanked Mr. Horstkotte for his presentation. 08 12 76 853 b. PRESENTATION BY CONSULTANT OR STAFF ON REVENUE PROGRAM Mr. Mike Verlander, Revenue Consultant from Brown and Caldwell, explained that the rates for the.Environmental Quality Charge are a result of a long range project that was started in the early '70's. With the use of slides and charts, Mr. Verlander explained how the rates for industrial and commercial users were developed and also what charges may be anticipated for the next year. However, at this time, the rates beyond 1977-78 are in the preliminary stage. In 1971, the Regional Water Quality Control Board issued interim require- ments for treating waste water to the tertiary level. To come up to the Federal Guidelines, it became necessary to expand our Treatment Plant Facil- ities. The District was able to obtain Federal and State grant funding of up to 87-1/2% or $60,000,000 for this project, leaving a cost of $10,000,000+ to expand the facility to 30 MGD advanced treatment. ' The addition of Solid Waste Recovery will reduce the maintenance cost requirements. In order to obtain the grants, the District had to meet three require- men t s: l. 2. 3. Managerial ability Financial capacity Fair and equitable rates The rate making approach is first to determine the costs that must be recovered. Once the annual cost is determined, we then define these costs in terms of treating these certain parameters and the rate is then established. This year, the Federal and State requirements do not go fully into effect because the new treatment facility is not in full operation for the year. This means the District has the option to base the charge on volume only, or to base it on strength and volume. This can include or exclude tax exempt properties. Next year they will have to be included. The District has resolved not to include the tax exempt properties this year. The 1976-77 charge for commercial users will be based on volume only. Next year it will be based on volume and strength and there will be a similar charge for tax exempt properties. The rates proposed by Central Contra Costa Sanitary District are higher than some agencies because of the higher level of treat- ment. Mr. Verlander stated that certain industrial users billed on a discharge basis which includes a capitalization demand factor would be receiving a credit on their ad valorem taxes after 1976-77. However, under the proposed volume 'rate for 1976-77, there is no such credit. President Boneysteele asked Mr. Dalton, Deputy General Manager-Chief Engineer, if he wished to make any remarks. Mr. Dalton recommended adoption of a $0.50 rate per 100 cubic feet for commercial and industrial users for this year with a $72 per year minimum per user or parcel. In response to Board query as to the minimum rate, Mr. Verlander stated that the minimum rate was used as a minimum charge to all users. c. DISCUSSION OF WRITTEN PROTESTS SUBMITTED TO THE BOARD President Boneysteele read the protest letters received from the following: Mr. Norman Landsberg, Walnut Creek J. S. Birch, Oakland Howard L. Adler, Walnut Creek House of Yarn, Walnut Creek YMCA, Pleasant Hill 08 12 76 854 Board Members queried staff as to the status of swim clubs and YMCA. Mr. Dalton explained that it is difficult to determine the amount of pool waste that gets into the sewer and would like authority to make an addi- tional study of the swim clubs and delay their billing. They would still pay the 1976-77 charge, but would be excluded from further hearing until a formula has been developed and presented to the Board. President Boneysteele then read the staff memo regarding the Environ- mental Quality Charge for swim clubs to the audience. He then, with Board consent, directed the staff to make the requested stußy and delay the bill- ing accordingly. d. PROTESTS AND QUESTIONS FROM THE FLOOR ~1r. Thomas Murphy of the Contra Costa Board of Realtors, stated that he wishes to go on record that the Contra Costa Board of Realtors opposes any increases because of the general high cost of doing business. However, if this is the case, and if the charges are fairly assessed, then they would grudgingly accept. Mr. Murphy queried Board Members about proper credit being allowed for water not ending up in the sewer since the water usage charge is to be assessed according to the water meter. He also stated that it is important that all owners are made aware of this proposed, charge and that owners of multiple space buildings with one meter should have their billing analyzed by the District. Mr. Dalton replied to Mr. Murphy's queries by stating that on the water meter vs. the sewer discharge, the District is making that adjustment. He agreed that the District should inform all of the owners who will be faced with the charge. On the subject of multiple space buildings, the District would be happy to work with the owner, therefore, staff is inves- tigating a more feasible solution. Mr. Murphy stated that in the event of an appeal situation, he hoped it would not be a lengthy process. President Boneysteele replied that it would be handled by staff at an informal conference and then presented to the 'Board. Mr. G. C. Bellecci of 3210 Elmquist Ct., stated that he does not oppose the assessment but felt that the tenant should be billed rather .than the owner. Mr. Horstkotte replied that keeping track of tenants can be most difficult, therefore, the bill has to go to the owner. Mr. Dalton added that under our ordinance, the owner is responsible for the payment. Failure to pay results in a lien against the property. . Member Mitchell queried staff as to the method employed for collecting the charge from the commercial property owners. Mr. Dalton explained that it is proposed that the commercial users will be billed $0.50 per hundred cubic feet of sewage discharged with a minimum annual charge of $72. The basis for computing the quantity of sewage discharged will come from the users' water bill. The amount will vary, so therefore, in order to obtain a more accurate estimate, it will be necessary to take the billing from the wettest month, since most of the water entering the building at this time is discharged into the sewer. Member Mitchell stated in that instance, the owner could be advised of the estimated yearly charge. Mr. Dalton replied that since we have not as yet heard from the water districts and with this being a transitional year, staff has not been able to make a firm deter- mination to date on use of water billings for sewer charges. Mrs. Alice Hamlin of Lafayette addressed the Board, stating that she is a tenant who has her own water bill and wanted to know how to define her portion of it. Mr. Dalton explained the ordinance to Mrs. Hamlin and ad- vised that she should work with the owner to d~termine her share of the sewer use charge billing. 08 12 76 855 At 9:00 P.M., President Boneysteele recessed the Hearing. At 9:13 P.M., President Boneysteele reconvened the Hearing. Mr. Felix Insinger, representative from the Springbrook Pool Associa- tion, addressed the Board. He stated that since the pool is open to the membership for a period of five months per year, it should be treated differently. Staff explained that a basic minimum charge for all residential and non-residential users has been established. If we allow consideration for swimming pools, we may be faced with doing the same for residential. Mr. William Harmon, representing SAGA, a company which owns the Black Angus, Velvet Turtle, Refectory and Straw Hat Pizza restaurants, inquired if any credit would be given to restaurants that have installed large grease traps. Mr. Verlander stated that a large grease trap would reduce some of effluent and if samples were brought in to support the statement that the waste discharge of the establishment is low, then there are lower rates in the rate study that could be applied to usage. Mr. Horstkotte commented that the staff has been running a continuing study on grease traps and has found that in most cases, (1) they are inadequate as far as size is con- cerned and (2) there is a lack of maintenance. Board Members and staff further discussed the best method of collection for the owner from his tenant. Mr. Dalton stated that the owners could draw up an agreement with the tenant and then the District would bill the tenant but the owner would still be responsible if the bill is not paid. President Boneysteele stated that this could be worked out be legal staff and presented to the Board for evaiuation. Member Mitchell expressed concern regarding the minimum charge stating that there are some commercial users that could almost be classified as non- users, yet they are paying a minimum charge. Mr. Dalton informed Member Mitchell that the ordinance allows for a review upon protest to consider different minimum charge for specific cases where they can show they are minimal users. At the present time, staff does not have the information know who will be on minimum charge. a very to Mr. William Gordon of Lafayette addressed the Board and stated that he had ten leases and six water meters. Mr. Gordon questioned how to compute the charge for his tenants. Mr. Dalton replied that a staff engineer would meet with Mr. Gordon and try to resolve the problem. After further discussion, it was moved by Member Allan, seconded by Member Gibbs, that the rates for all users, other than residential proper- ties, swimming pool clubs or tax exempt properties shall be $0.50 per 100 cubic feet with a minimum rate of $72 per year and, a resolution be adopted to that effect. RESOLUTION NO. 76-171, A RESOLUTION SETTING ENVIRONMENTAL QUALITY CHARGES BY THE CENTRAL CONTRA COSTA SANITARY DISTRICT FOR CERTAIN USERS Motion carried by the following vote: AYES: NOES: ABSENT: Hembers: Members: Members: Gibbs, Mitchell, Rustigian, Allan and Boneysteele None None President Boneysteele thanked everyone in the audience and stated that the Board would do their best to apply the revenue program as fairly as possible. At 9:53 P.M., President Boneysteele closed the Hearing. 08 12 76 856 V. REVIEW OF EXPENDITURES After discussion, it was moved by Member Mitchell, seconded by Member Rustigian, that expenditures including Sewer Construction Vouchers Nos. 2903 through 2926 inclusive, Running Expense Vouchers Nos. 22832 through 23009 inclusive, and Payroll Vouchers Nos. 3227 through 3395 inclusive be approved. Motion carried by the following vote: AYES: NOES: ABSENT: Members: Members: Members: Gibbs, Mitchell, Rustigian, Allan and Boneysteele None None VI. ADJOURNMENT At 9:57 P.M., President Boneysteele adjourned the meeting. .."'-----' : Y /~ ~ L -:ê' . ~~1 >/;; ~ ~;;:'l'~, President of the Board of)ffirectors of Central Contra Costa San{tary District of Contra Costa County, State of California COUNTERSIGNED: , / Sec tary of th ' oard of Directors of Central Contra Costa Sanitary District of Contra Costa County, State of California 08 12 76: