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HomeMy WebLinkAboutBOARD MINUTES 01-27-98 31 MINUTES OF THE ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JANUARY 27, 1998 The District Board of the Central Contra Costa Sanitary District convened in an adjourned regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 7:00 p.m. on January 27, 1998. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Lucey, Menesini, Hockett, Boneysteele, Nejedly ABSENT: Members: None 2. PUBLIC COMMENTS Mr. Bird Morningstar, of The Happy Gardener, commended the District for its efforts in taking pesticides out of the environment and reusing them. The Household Hazardous Waste Collection Facility is a good step in that direction. Mr. Morningstar stated that the next step is getting large quart containers off the market, replacing all quart containers with pint size. Then when they must be disposed of there is half the amount. Mr. Morningstar stated that the Board of Supervisors can require such a program. Mr. Morningstar stated that an alternative to pesticides is the use of traps to catch pests. This alternative will help clean up the environmental in a more safe and economical way. Mr. Morningstar stated further that water management is very important. The Happy Gardener is trying to keep water from running out of yards and polluting the Bay. This program began before the drought. It saves water and keeps pesticides and other pollutants from going into the sanitary sewer system and the Bay. Mr. Morningstar stressed the need to educate homeowners on these pollution prevention programs. President Nejedly thanked Mr. Morningstar for his informative comments. 3. SOLID WASTE a. CONSIDER ISSUES AND DECIDE ON DISPERSAL OPTION FOR REMAINDER OF ACME LITIGATION FUNDS Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that at the last Board Meeting the Board provided some direction to staff relative to alternatives to be analyzed for dispersal of the remainder of the Acme litigation funds. Staff has provided that information for the Board's consideration and would be happy to answer any questions. Mr. Don Tatzin, Lafayette City Councilmember and Central Contra Costa Solid Waste Authority (CCCSWA) Board Member, thanked the Board for the action they took on January 20, 1998 to return over $600,000 to CCCSWA. Mr. Tatzin stated that when this was discussed at the Lafayette City Council meeting on January 26, 1998, the City Council asked Mr. Tatzin to convey that since the additional funds came from the solid waste franchise area, the funds should be returned to the solid waste franchise area. Mr. Tatzin suggested that a fifth option not contained in the position paper, would return all the excess funds via CCCSWA to the solid waste ratepayers. In response to a comment from Member Boneysteele, Mr. Tatzin agreed that the net worth of the insurance premiums be retained by the District. In that way everyone would be made whole. The Sewer Service Charge ratepayers would be no worse off then if there had been no litigation and the solid waste ratepayers would get back some of the surplus funds they paid for the Acme litigation. 01 27 98 32 As a matter of protocol, Mr. Dolan introduced Ms. Dianne Barry, of the Lempres & Wulfsberg law firm. Ms. Barry has public agency experience. She has been introduced to the subject before the Board and spent a brief amount of time familiarizing herself with it. Ms. Barry is present to advise the Board. Mr. Kenton L. Aim, Counsel for the District, is also present to answer any questions. Ms. Janet Schneider, CCCSWA Executive Director, thanked the Board for the action taken at the last Board Meeting. The funds went to good use immediately. The anticipated rate increase for Danville, Lafayette, Moraga, and Orinda, areas formerly franchised by the District, went down approximately three percent. CCCSWA will continue to work with the District on whatever decisions the Board makes in terms of dispersal of the remainder of the funds. Ms. Schneider stated that CCCSWA supports Option 1 or Option 4 set forth on Attachment 6 to the position paper. Mr. Bill Lindsay, Orinda City Manager, stated that the Orinda City Councilmembers were unable to attend this meeting, but they echo support for Option 1. To build on Member Boneysteele's comment, Mr. Lindsay stated that his experience with the District throughout its franchise period was that the District was very good at separating its solid waste franchising authority from its sewer enterprise. Mr. Lindsay stated that it makes very good sense to refund solid waste money to the solid waste ratepayers and sewer amounts back to the Sewer Service Charge ratepayers. Mr. Lindsay asked that the Board refund the excess Acme litigation money to the solid waste ratepayers who paid it. Mr. Lindsay thanked the Board for their consideration. Mr. Frank Sperling, Mayor of the Town of Moraga and CCCSWA Board Member, agreed with the other CCCSWA Board Members and Executive Director, stating that he supports fully the positions they have taken. It was moved by Member Hockett and seconded by Member Lucey, that Option 1, return remaining balance of Acme Litigation funds in the amount of $626,117, to the solid waste customers via CCCSWA rate setting, be approved. Motion failed to pass on the following vote: AYES: Members: Hockett, Lucey NOES: Members: Menesini, Boneysteele, Nejedly Discussion followed with regard to the success of the Household Hazardous Waste Collection Facility and accompanying disposal cost overruns, the merits of Options 2 through 4 for dispersal of the remaining Acme litigation funds, details relating to the insurance policies and payment of premiums, the background relating to establishment of the legal impound account from funds collected from the solid waste ratepayers for the garbage haulers' Acme litigation expenses, and the criteria for payment of legal impound account monies to the garbage haulers to cover 75 percent of the haulers' actual reasonable legal expenses not reimbursed by their insurance. In response to a question from Member Boneysteele, Ms. Dianne Barry, legal counsel advising the District, responded that the District's risks of legal claim would increase if funds collected from solid waste ratepayers for litigation but not expended, were retained by the District. Ms. Barry stated that getting money back to the people who have the most valid claim is the least risky. President Nejedly suggested that the Board consider an option similar to Option 4, but using the remaining fund balance of $501,229 to defray any Sewer Service Charge increases, not just Household Hazardous Waste Facility cost overruns. President Nejedly asked if the remaining balance is returned via CCCSWA would it be used to lessen the pressure on the garbage companies to keep their end of the contracts? Will the money be used in the CCCSWA rate setting process to essentially offset the garbage companies contractual agreements? 01 Gl. iJ tQ.( /., . ~, 98 33 Mr. Tatzin stated that the CCCSWA Board has set the revenue requirements for the garbage companies. They have accepted that, so the money will be used in the District's former franchise jurisdictions to lower rate increases or offset future rate increases for solid waste ratepayers. In response to a question from Member Menesini, Ms. Schneider stated that the Walnut Creek City Council made a decision to amortize the Walnut Creek surplus litigation funds over the next eight years of the solid waste contract. Mr. Sperling stated that this money will not be used to offset contract costs for garbage companies. It will not change the solid waste contracts. Ms. Barry stated that the Board has the ability to put conditions on this money if Board decides to give it back through CCCSWA. If the money is returned via CCCSWA, Ms. Barry recommended that the Board obtain a hold harmless agreement from CCCSW A that CCCSWA would hold the District harmless for any claim made in the future regardless of the source. As a point of clarification and not to advocate any position, Mr. Aim stated that it has been well publicized and the Board is aware that there are negotiations going on between Valley Waste Management and CCCSWA that Valley Waste Management claims to have lost $12 million over the last two years. The course of action taken by CCCSWA with regard to Valley Waste Management will be taken with or without this money. The rates being proposed include certain modifications to resolve all outstanding claims of Valley Waste Management, but if the $419,000 were returned via CCCSWA, it would not go into Valley Waste Management's pocket. However, the current rate structure will be a component to reduce the claims of the companies. Ms. Schneider stated that the proposed rates that CCCSWA staff will recommend to the Board on January 29, 1998, include a tentative agreement with Valley Waste Management. The $419,000 does not take into account that settlement. President Nejedly stated that he is concerned that the excess money be returned to the solid waste ratepayers and not to the garbage companies who entered into contracts and should stick by those contracts. Mr. Tatzin stated that the existing contracts have an allowance for increases based on the Consumer Price Index. Those increases are conditions of the contracts. Following discussion, it was moved by Member Hockett and seconded by Member Lucey, that the remaining balance in the legal impound account of $419,488 be returned for the benefit of the solid waste ratepayers formerly franchised by the District via the Central Contra Costa Solid Waste Authority with the condition that CCCSWA hold the District harmless and indemnify the District; and that the remaining Acme litigation fund net balance be retained by the District to offset the present worth value of liability insurance premiums paid by the District Sewer Service Charge customers and to help defray increases in District operating costs. The motion was unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Menesini, Boneysteele, Nejedly None None At 8:40 p.m., President Nejedly declared a recess, reconvening at the hour of 8:46 p.m., with all parties present as previously designated. 01 /"". 117 ;¿ I',' 98 34 4. APPROVAL OF MINUTES a. MINUTES OF ADJOURNED REGULAR MEETING OF JANUARY 8. 1998 It was moved by Member Menesini and seconded by Member Nejedly, that the minutes of the Adjourned Regular Meeting of January 8, 1998 be approved as presented. There being no objection, the motion was unanimously approved. 5. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, announced his intention to retire from the District in the first quarter 1999; approximately one year from now. Mr. Dolan stated that this time schedule will allow him sufficient time to develop other career opportunities. Mr. Dolan stated that he originally came to the District with a seven to ten year plan to untangle the political, legal, financial, contractual, and engineering situation that existed in 1977. After that job was done, managing the growing operation, the Capital Improvement Program, and the regulatory expectations, provided challenges. Growing personal visibility in the professional field provided the opportunity to enhance the District's prestige and efficiency. The competitiveness trend of the 1990's provided challenges to everyone at the District. The employees and the organization are all responding well. Mr. Dolan stated that it is now time to seek new challenges. During the next year challenges include the Engineering Department reorganization and transition to new department heads, and Board interaction and effectiveness. Mr. Dolan expressed his hope that the Board and staff would work together during this year of reconstruction, development, and team building, making the District a finer institution for the public we serve. In the discussion that followed, Member Boneysteele stated that the District is a monument to Mr. Dolan. What the District is today it owes more to Mr. Dolan than any other person. 6. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at the hour of 9:02 p.m. ~~- Ú ~~~/t( Pres nt of the Board of Di ctors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: l.i-¿-ß Seïef..:a of the Central Cor ra Costa San:ti..íY District, Coun~y of \"ontra Costa, State of California 0', .~ "Jt 2,ft 98