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HomeMy WebLinkAboutBOARD MINUTES 06-05-86 136 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE 5, 1986 The District Board of the Central Contra Costa Sanitary District convened in a regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 7 :30 p.m. on June 5, 1986. President Carlson called the meeting to order and requested that the Secretary call roll. I. ROLL CALL PRESENT: ABSENT: Members: Boneysteele, Dalton, Clausen, Carlson Members: McNul ty Member McNul ty had previously indicated she woul d be unabl e to attend this meeting and requested that she be excused. II. PUBLIC COMt-£NTS None II 1. EXPENDITURES 1. EXPENDITURE LIST DATED JUNE 5, 1986 Member Dalton, member of the Budget and Finance Committee, stated he and Member Clausen have reviewed the expenditures and found them to be satisfactory. It was moved by Member Dalton and seconded by Member Clausen, that the Expenditure List dated June 5, 1986, including Running Expense Warrant Nos. 25926-26411, Sewer Construction Warrant Nos. 3648-3703, and Payroll Warrant Nos. 6951-7184, be approved as presented. There being no objection, the motion was approved with Member McNulty being absent. IV. BUDGET AND FINANCE 1. APPROVE THE 1986-1987 OÆRATIONS AND MAINTENANCE BUDGET Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that at the May 29,1986, Board Meeting, a workshop was held to discuss in detail the proposed 1986-1987 Operations and Maintenance (O&M) Budget. At that time the Board directed staff to make a number of changes in the budget presentati on and to prov i de fu rther documentati on on the rate-setti ng aspect of the proceedings. Those changes and additional information are incorporated in the proposed O&M Budget under consideration at this time. Staff is prepared to answer any questions. It was moved by Member Clausen and seconded by Member Dalton, that the 1986-1987 Operations and Maintenance Budget be approved and that the contract for legal services with the 1 aw fi rm of Sell ar, Hazard, Snyder, Kelly & Fitzgerald be approved. Motion approved on the follOtiing roll call vote: AYES: Members: Boneysteele, Dalton, Clausen, Carlson NOES: ABSENT: Members: None Members: McNulty V. HEARING S 1. CONDUCT PUBLIC HEARINGS FOR EST,48LISHING THE 1986-1987 SEWER SERVICE CHARGE RATES AND FOR THEIR COLLECTION, AS WELL AS THE COLLECTION OF DELINQUENT SEWER SERVICE CHARGES, ON THE COUNTY TAX ROLL 06 05 86, 137 President Carlson indicated that three separate public hearings will be conducted. The purpose of the three hearings will be to obtain public comment regarding establ ishing the 1986-1987 Sewer Service Charge rates, the collection of the 1986-1987 Sewer Service Charges on the County tax roll, and the collection of Delinquent Sewer Service Charges on the County tax roll. PUBLIC HEARING FOR 1HE PURPOSE OF ESTABLISHING THE 1986-1987 SEWER SERVICE CHARGE RATES la. Mr. Dolan, General Manager-Chief Engineer, stated that 1985-1986 was a banner year at Central Contra Costa Sanitary District. Primarily because of increased revenue, the level of reserves has increased over the last year. Operation of the furnaces has resulted in significant savings in sludge disposal costs. In the coming year there will be a reduction in insurance costs due to implementation of the District's Self Insurance Fund. Al so due to reduced gas rates the pl ant expects lower utility costs. Principally, as a result of lower projections for inflation, the predictions for the long term level of the District's O&M reserve appear even more favorabl e thi s year then 1 ast year. It woul d therefore be appropriate to consider a reduction in the Sewer Service Charge rate. Mr. Dolan introduced Mr. Walter N. Funasaki, Finance Officer, who summarized the effect of the 1985-1986 resul ts of operati ons and the budgeted 1986-1987 results of operations on the O&M Fund retained earnings. Mr. Funasaki presented graphic comparisons of alternatives for setting the Sewer Service Charge considering the projected revenues and expenditures for the coming fiscal year and maintenance of appropriate 1 evel s of reserves. In the past, the Di strict has consi dered a prudent reserve to be 10 percent of budgeted expenditures. The requirement for reserves is related to the level of risk of unanticipated loss. Since the District is now self insured, it is appropriate to think of the Self Insurance Fund in conjunction with the O&M reserve when making decisions as to the appropriate level of the reserve. Mr. Funasaki then presented graphics showing the effect of contributing $1 million, $2 million, and $3 million to the Self Insurance Fund. At 8:05 p.m., President Carlson opened the public hearing and stated that the Board would receive any public comments regarding the establishment of the Sewer Service Charge rate. Mr. Donald L. Christen, Executive Vice President of the Contra Costa Taxpayers' Association, distributed a statement from the organization. On behalf of the Contra Costa Taxpayers' Association, Mr. Christen recommended that $1 mill i on be transferred from the O&M Reserve to the Sel f Insurance Fund and that the Sewer Service Charge be reduced from $124 to $72. This reduction in Sewer Service Charge would reduce the O&M Reserves to 10 percent of the 1986-1987 proposed O&M Budget, $1,926,000. The Secretary of the District advised the Board that a telephone call was received from Ms. Barbara Zivica at 4:00 p.m. today. Ms. Zivica requested that the Board of Di rectors consi der setti ng up a $1 mill ion sel f insurance program. In additi on, she recommended that the Sewer Service Charge be reduced $10 per year for the next five years and that a lid of no more than 10 percent be placed on the reserve holdings. There bei ng no further comments, Presi dent Carl son decl ared the public hearing closed at the hour of 8:09 p.m. and returned the matter to the Board for deliberation. A discussion followed relative to budgetary uncertainties and risks facing the District, the appropriate level of contribution to the Self Insurance Fund, and mai ntenance of a prudent 1 evel of reserves. Member Clausen stated that in view of the uncertain risks associated with the implementation of the District's Self Insurance Fund, he would support a $2 million contribution to that fund in addition to the approximate $1.5 million currently proposed. It was moved by Member Clausen and seconded by Member Dalton, that the balance of $567,124 in Line 053, Self Insurance Expense, be augmented by $2,000,000 from the O&M Reserve. Motion approved on the following roll call vote: Uti .i 0'5 8'6 . .-. 138 AYES: Members: Boneysteel e, Dalton, Clausen, Carlson NOES: Members: None ABSENT: Members: McNulty In response to an inquiry from Member Boneysteele, Mr. Funasaki stated that if the recommendation of the Contra Costa Taxpayers' Association for reduction of the Sewer Service Charge from $124 to $72 were implemented in 1986-1987, it would be necessary to increase the Sewer Service Charge back to $124 in 1987-1988. The Sewer Service Charge would increase in each subsequent year as well. Member Boneysteele asked that assuming all of the assumptions used in the projections are valid, a Sewer Service Charge of $116 could be maintained at that level for seven years, until 1993. Mr. Funasaki indicated that was correct. It was moved by Member Clausen and seconded by Member Dalton, that the Sewer Service Charge rate be established at $116 for the 1986-1987 fiscal year and that a resolution be adopted to that effect (Resolution No. 86-043). Motion approved on the following roll call vote: AYES: Members: Boneysteele, Dalton, Clausen, Carlson NOES: Members: None ABSENT: Members: McNul ty PUBLIC HEARING TO CONSIDER COLLECTION OF THE 1986-1987 SEWER SERVICE CHARGE ON THE COUNTY TAX ROLL lb. At 8:36 p.m., President Carl son decl ared the publ ic hearing open regarding the collection of the 1986-1987 Sewer Service Charge on the County tax roll. There being no comments, President Carlson declared the public hearing closed. It was moved by Member Dal ton and seconded by Member Boneysteel e, that collection of the 1986-1987 Sewer Service Charge on the County tax roll be authorized and that a resolution be adopted to that effect (Reso 1 ut i on No. 86-044). Mot ion ap proved on the fo 11 ow i ng roll call vote: AYES: Members: Boneysteele, Dalton, Clausen, Carlson NOES: ABSENT: Members: None Members: McNulty PUBLIC HEARING TO CONSIDER COLLECTION OF DELINQUENT SEWER SERV ICE CHARGE ON THE COUNTY TAX ROLL lc. Mr. Dolan, General Manager-Chief Engineer, stated that two property owners are del inquent in payment of the Sewer Service Charge. It is proposed that these del inquent charges be collected on the 1986-1987 County tax roll. At 8 :38 p. m., Presi dent Carl son decl ared the publ ic heari ng open. There being no comments, President Carlson declared the public hearing closed. There being no protests, it was moved by Member Boneysteele and seconded by Member Dal ton, that the Del inquent Sewer Service Charge Accounts Report dated May 1986 be adopted pursuant to Section 5473 of the Health and Safety Code and that collection on these Del inquent Sewer Service Charges on the County tax roll be authorized (Resolution No. 86-045). Motion approved on the following roll call vote: AYES: Members: Boneysteele, Dalton, Clausen, Carlson NOES: Members: None . jÐ,:6- {--O::5 8~6 , J, ~ 139 ABSENT: Members: McNulty Following explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Dal ton and seconded by Member Cl ausen, that subject to approval by legal counsel, staff is authorized to publish the appropriate notice concerning the contribution of ad valorem taxes to the capital fund. Motion approved on the following roll call vote: AYES: Members: Boneysteele, Dalton, Clausen, Carlson NOES: Members: None ABSENT: Members: McNulty 2. HOLD A PUBLIC HEARING ON DISTRICT ANNEXATION 92 AS AMENDED BY THE LOCAL AGENCY FORMATION COMMISSION (LAFCO) Presi dent Carl son decl ared the publ ic heari ng open at the hour of 8:47 p.m. There being no public comment or written protests with regard to the proposed annexation, the public hearing was declared closed. It was noted for the record that legal notice of the hearing was duly publ ished and that affected property owners were notified of this hearing as required by law. It was moved by Member Dal ton and seconded by Member Boney steel e, that resolutions be adopted concurring with the Negative Declaration and ordering annexation of all parcels in District Annexation 92 as amended by Local Agency Formation Commission (Resolution Nos. 86-046, 86-047, 86-048,86-049,86-050, 86-051, 86-052, and 86-053). Motion approved on the following roll call vote: AYES: NOES: Members: Boneysteele, Dalton, Clausen, Carlson Members: None AB SENT: Members: McNulty VI. BIDS AND AW ARDS 1. AUTHORIZE ¡'¡¡ARD OF CONSTRUCTION CONTRACT TO r-GM CONSTRUCTION CO., CONCORD, CA, FOR VIA RœLE PUMP STATION, LAFAYETTE, AND AUTHORIZE $60,700 FROM THE SEWER CONSTRUCTION FUND FOR DISTRICT PRO) ECT NO. iQ1i Following explanation by Mr. Dolan, General Manager-Chief Engineer, and discussion of the seven alternatives originally considered for this proj act, it was moved by Member Dal ton and seconded by Member Boneysteele, that award of the construction contract for the Via Roble . Pump Station, Lafayette, be authorized to MGM Construction Company, the lowest responsible bidder, and that $60,700 be authorized from the Sewer Construction Fund for District Project No. 4014. Motion approved on the following roll call vote: AYES: Members: Boneysteele, Dalton, Clausen, Carlson NOES: Members: None ABSENT: Members: McNulty 2. AUTHORIZE ¡'¡¡ARD OF CONSTRUCTION CONTRACT TO HARCO CORPORATION; AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE CONTRACTS WITH VILLALœOS ,& ASSOCIATES AND MILLER PIPELINE CORPORATION FOR PROFESSIONAL SERVICES: AND AUTHORIZE $346,000 FROM THE SEWER CONSTRUCTION FUND FOR CATHODIC PROTECTION PHASE 1, DISTRICT PRo) ECT NO. 20029 Mr. Dolan, General Manager-Chief Engineer, stated that this project was originally part of the Stage SA construction; however substantial changes were made and it was removed from the SA project and handled separately. O';6~'~ O'.'~'."..;. 8.6 .'., , ""} ~ltJ. ~ ' )' , ;. '. , ,~,' " .-' '- 140 Mr. James L. Hazard, Counsel for the Di strict, advised the Board that because of current and prior litigation, further discussion on this matter shoul d be deferred pendi ng di scussi on i n closed sessi on. The Board concurred. AUTHORIZE AWARD TO PURCHASE SULFUR DIOXIDE LIQUID FROM VIRGINIA CHEMICAL COMPANY FOR THE PERIOD JULY 1986 THROUGH JUNE 1987 3. Following explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Dalton and seconded by Member Clausen, that award to purchase sul fur dioxi de 1 iqui d be authorized from Vi rgi ni a Chemical Company for the period July 1986 through June 1987 at a cost of $226.60 per ton. Motion approved on the following roll call vote: AYES: Members: Boneysteele, Dalton, Clausen, Carlson NOES: Members: None ABSENT: Members: McNul ty VII. CONSENT CALENDAR It was moved by Member Dal ton and seconded by Member Boneysteel e, that the Consent Calendar, consisting of five items, be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. 1. Resolution No. 86-054 accepting an easement at no cost to the District from CHATHAM WOODS GROUP, LTD., Pacheco area (Job 4108 - Parcel 1) was adopted and recording authorized. Motion approved on the following vote: AYE S: Members: Boney steel e, Dal ton, Clausen, Carlson NOES: Members: None ABSENT: Members: McNulty 2. Compl eti on of Di strict Annexati on No. 92-A was ordered and Resolution No. 86-055 concurring with the Negative Declaration was adopted. Motion approved on the following vote: AYES: Members: Boneysteele, Dalton, Clausen, Carlson NOES: Members: None ABSENT: Members: McNul ty 3. Authorization was given for attendance by Harriette Stahl at an American Management Association seminar entitled "Basic Publ ic Rel ati ons Ski 11 sIt at an estimated cost of $700. Motion approved on the following vote: AYES: NOES: Members: Boneysteele, Dalton, Clausen, Carlson Members: None ABSENT: Members: McNulty 4. July 3,1986, was established as a date for a public hearing to consider the forfeiture of Advantage Plumbing's $1,000 contractor cash deposit. Motion approved on the following vote: AYES: Members: Boneysteele, Dalton, Clausen, Carlson NOES: Members: None o~ 6'::/ 0<5 . 86' 141 ABSENT: Members: McNul ty 5. Resol uti on No. 86-056 orderi ng that publ icati on of Di strict Ordinance No. 157 has been made, was adopted. Motion approved on the following vote: AYES: Members: Boneysteele, Dalton, Clausen, Carlson NOES: Members: None ABSENT: Members: McNulty CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item XIII, Closed Session, was taken out of order. XIII. CLOSED SESSION 1. LITIGATION Pursuant to Government Code Section 54956.9(b), a point has been reached where in the opinion of the Board of Directors of the Central Contra Costa Sanitary District on the advice of its Counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the District. The title of the litigation is not being identified because to to so would jeopardize the Board's ability to conclude existing settlement negotiations to its advantage. 2. PERSONNEL Pursuant to Government Code Section 54957, the closed session was held to discuss personnel matters. At 9:02 p.m., President Carlson declared the closed session to discuss litigation pursuant to Government Code Section 54956.9(b) and personnel pursuant to Government Code Section 54957. At 9:45 p.m., President Carlson concluded the closed session and reconvened the meeting into open session. XIV. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION It was moved by Member Boneysteele and seconded by Member Dalton, that payment of $11,851.10 is authorized from the O&M Contingency Account for settlement of the Ronald and Cynthia Parks overflow. Said payment shall be given in exchange for the appropriate release from the property owners. Motion approved on the following roll call vote: AYES: Members: Boneysteele, Dalton, Clausen, Carlson NOES: ABSENT: Members: None Members: McNulty At this time, Item VI. 2, which was deferred pending discussion is closed session, was considered. VI. BIDS AND AW ARDS 2. AUTHORIZE AWARD OF CONSTRUCTION CONTRACT TO HARCO CORPORATION; AUTHORIZE THE GENERAL MANPßER-CHIEF ENGINEER TO EXECUTE CONTRACTS WITH VILLALœOS & ASSOCIATES AND MILLER PIÆLINE CORPORATION FOR PROFESSIONAL SERV ICES; AND AUTHORIZE $346 ,000 FROM. THE SEWER CONSTRUCTION FUND FOR CATHODIC PROTECTION PHASE 1, DISTRICT PRCllECT NO. 20029 It was moved by Member Clausen and seconded by Member Boneysteele, that award of construction contract be authorized to Harco Corporation, the lowest responsible bidder; that the General Manager-Chief Engineer be authorized to execute a contract with Villalobos & Associates and Miller Pipel ine Corporation for professional services during construction; and that $346,000 be authorized from the Sewer Construction Fund for O.6~ 05 X t$ß;~. ,... 142 completion of the Wastewater Treatment Plant Cathodic Protection System- Phase 1, District Project No. 20029. Motion approved on the follCAtling roll call vote: AYES: NOES: Members: Boneysteele, Dalton, Clausen, Carlson Members: None ABSENT: Members: McNul ty At this time President Carlson returned to the order of the agenda. VIII. SOLID WASTE 1. CONSIDER REQUEST FOR TERMINATION OF THE DISTRICT'S REFUSE COLLECTION FRANCHISE ,4GREEMENT RELATED TO VALLEY DISPOSAL SERVICE, INC. ' S SERVICE AREA WITHIN THE CITY OF SAN RAMON EFFECTIVE JULY 1,1986 Mr. Dol an, General Manager-Chief Engi neer, stated that duri ng the District's renegotiation of the present refuse collection franchise agreement with Valley Disposal Service, the city of San Ramon notified the District of the city's intention to assume franchising authority in order to sel ect a si ngl e refuse coll ector to serve the ci ty. As a resul t, the new franch i se agreement excl udes the ci ty of San Ramon from coverage. San Ramon remains covered by the old franchise agreement which does not expire until November 1986. This action would terminate the old franchise agreement and thus would allow the city to assume franchising authority. It was moved by Member Clausen and seconded by Member Dalton, that pursuant to the requests of the city of San Ramon and Valley Disposal Service, Inc., termination of the former Valley Di sposal Service, Inc. refuse collection franchise agreement related to its service area within the city of San Ramon is authorized effective July 1, 1986. Motion approved on the follCAtling roll call vote: AYES: NOES: Members: Boneysteele, Dalton, Clausen, Carlson Members: None ABSENT: Members: McNulty IX. CORRESPONDENCE 1. RECEIVE COMMUNICATION FROM lHE CITY OF SAN RAmN CONCERNING THE SAN RAmN COMMUNITY REDEVELOPMENT PROJECT Mr. Dolan, General Manager-Chief Engineer, advised that this is an informational item. Staff will continue to monitor this project and return to the Board when action is required or additional information is avail abl e. X. ITEMS LATE FOR THE ,4GENDA None X1. REPORTS 1. GENERAL MAN,4GER-CHIEF ENGINEER a. Mr. Dol an, General Manager-Chief Engi neer, introduced Mr. James Kelly, Planning Division Manager, who summarized the possible areas of cooperation between the District and Tri-valley Wastewater Agency (TWA). Those areas include sewers from San Ramon Valley to Ygnacio Valley Road, sewers from Ygnacio Valley Road to the treatment pl ant, the treatment plant itself, and the outfall. A meeting has been set up between members Carlson and Clausen and representatives of lWA as well as appropriate staff members. This meeting will take place June 26,1986. 06 05 86 143 b. A publ ic hearing has tentatively been scheduled for Wednesday, July 23, 1986, to receive public comments on the San Ramon Valley Pipeline EIR. c. Mr. Dol an advised the Board that a committee, chai red by Mr. Charles Batts, has been formed to develop a master plan for landscaping at the treatment plant. It is the intent of the committee to begin discussions with a landscape architect. d. Requests for Proposals for the Plant Odor Control Project will be going out in the near future. e. Mr. Dolan discussed the plan to evaluate and improve the District's mobile radio system. This system is used by CSO, Pump Stati ons personnel, and construction inspectors. Mr. George Niel sen, a communication specialist, will be engaged to review and evaluate the current system and develop a report that will include phased replacement of the radio equipment in the coming years. f. Mr. Dolan reported that the Henry property, north of the plant si te near the outfall ri ght-of-way, is on the market. The Di strict had this property appraised previously. Staff will have that appraisal updated. 2. COUNSEL FOR THE DISTRICT a. Mr. James L. Hazard, Counsel for the District, provided a status report of the Busby overfl CItI matter. To date 100 percent of the funds paid out excluding attorney's fees have been recovered from Orca Construction. This same procedure will be used when appropriate in the future. b. Mr. Hazard requested to be excused from the June 19, 1986, Board Meeting to attend a conference dealing with the implementation of Proposition 51. Mr. Kent Alm will attend the Board Meeting. 3. SECRETARY OF THE DISTRICT a. Ms. Joyce McMillan, Secretary of the District, discussed the format of the resol uti on and procedure to be foll CItIed rel ative to Board certification that ordinances have been duly published. The Board concurred that these items should be placed on the Consent Calendar. 4. BOARD MEMBERS a. Member Dalton reported on the June 4, 1986, Solid Waste Commission meeting. At that meeting the final report on the study of potential landfill sites was reviewed. The cities of Antioch, Pittsburg, and B rentw ood have adopted a j oi nt reso 1 ut ion obj ect i ng to the th ree privately proposed landfill sites and supporting the most remote site. A copy of the resolution was filed with the Secretary of the District. b. Presi dent Carl son reported that he had received a letter from Union Sanitary District indicating they had received a copy of the District's Self Insurance Plan. Messrs. Walter Funasaki, Jack Campbell, and David Warren will present a program on the Self Insurance Program at the next CASA meeting. c. Member Clausen reported on the June 4, 1986, Annexation Committee meeting. A summary of that meeting is available to all Board Members. At that meeting a draft resolution concerning the annexation policy was discussed. Staff was requested to further work on the draft prior to submission to the full Board for consideration. XII. MATTERS FROM THE BOARD NOT ON THE .6ßENDA It was moved by Member Dalton and seconded by Member Clausen, that Board Members and appropriate staff members be authorized to attend the August CASA meeting. There being no objection, the motion was approved with Member McNulty being absent. 06 ,¡' .,:,' 0.. ". 05 86 144 " " o'ti XIII. CLOSED SESSION This item was taken out of order earlier in the agenda. XIV. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION This item was taken out of order earlier in the agenda. XV. ADJ OURN~NT There being no further business to come before the Board, President Carlson adjourned the meeting at the hour of 10:40 p.m. iJtJL2L. President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: '\ fa. u ¿. l~ LfY tUt----- S c et y of the Cen ral Contra C~ a Sanitary District, County of Contra Costa, State of California 05 86