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HomeMy WebLinkAboutBOARD MINUTES 01-18-94 12 MINUTES OF THE ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JANUARY 1 8, 1994 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 3:00 p.m. on January 18, 1994. President Rainey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Dalton, Rainey ABSENT: Members: Hockett, Clausen Members Hockett and Clausen had previously indicated that they would be unable to attend this meeting and had requested that they be excused. Mr. Kenton L. Aim, Counsel for the District, had advised staff that he was unavoidably detained and requested that the meeting begin without him. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Dalton and seconded by Member Menesini, that the Consent Calendar, consisting of Items a. through d., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 94-008 accepting work and offers of dedication from Julio Ismael Abraham and Margarita Abraham, Job 4867, Parcel 2, was adopted and recording was authorized. Motion approved on the following vote: AYES: Members: Dalton, Menesini, Rainey NOES: Members: None ABSENT: Members: Hockett, Clausen b. Authorization was given for P.A. 94-1 (Lafayette area) to be included in a future formal annexation to the District. . Motion approved on the following vote: AYES: Members: Dalton, Menesini, Rainey NOES: Members: None ABSENT: Members: Hockett, Clausen c. The contract work for the No Dig Upsizing Project, DP 9558, was accepted and filing of the Notice of Completion was authorized. Motion approved on the following vote: AYES: Members: Dalton, Menesini, Rainey NOES: Members: None ABSENT: Members: Hockett, Clausen 01 18 94 13 d. The attendance of Ronald Klimczak, Senior Engineer, was authorized at the Course "Concrete Problems: Investigative Techniques, Causes, and Solutions" in Las Vegas, Nevada, at a total cost of $1,200. Motion approved on the following vote: AYES: Members: Dalton, Menesini, Rainey NOES: Members: None ABSENT: Members: Hockett, Clausen 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 5. BIDS AND AWARDS a. AUTHORIZE AWARD OF A PURCHASE ORDER ~DY COMPANY. INC. TO FURNISH THREE MAGNETIC FLOWMETERS FOR METERING OF WASTEWATER FLOWS AT MALTBY PUMPING STATION Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that magnetic flowmeters will be installed at the Maltby pumping station in Martinez, the closest pumping station to the Treatment Plant. It is recommended that award of purchase order be authorized to the low bidder, Ken Grady Company, Inc. Following discussion, it was moved by Member Dalton and seconded by Member Menesini, that award of purchase order be authorized to Ken Grady Company, Inc., the lowest responsible bidder, in the amount of $14,689 to furnish three magnetic flowmeters for metering of wastewater flows at the Maltby Pumping Station. There being no objection, the motion was approved with Members Hockett and Clausen being absent. 6. SOLID WASTE a. RECEIVE PRESENTATION OF HILTON FARNKOPF & HOBSON REPORT TO CENTRAL CONTRA COSTA SOLID WASTE AUTHORITY ON SOLID WASTE AND RECYCLING SERVICE - POST 1996: AND CONSIDER DRAFT LETTERS NOTIFYING HAULERS THAT DISTRICT DOES NOT INTEND TO EXTEND CURRENT FRANCHISE AGREEMENTS BEYOND FEBRUARY 28. 1996 Mr. Dolan, General Manager-Chief Engineer, stated that the presentation today will be similar to the one that was made at the December 6, 1993 Central Contra Costa Solid Waste Authority (CCCSWA) meeting. Hilton Farnkopf & Hobson have been asked to analyze and provide a framework for future franchising considerations after 1996 when the current franchises expire. Member Menesini inquired about recent discussions relating to AB 939. and the overriding legislation of AB 440. Mr. Robert D. Hilton, of Hilton Farnkopf & Hobson (HFH), stated that he tried to take into consideration legislation and court cases available at the time the report was prepared. The recent announcement that the California Integrated Waste Management Board may be eliminated, was unexpected. Mr. Hilton stated however, that the reports deals with the long term and tries to make sound recommendations regardless of short-term uncertainties. Mr. Hilton stated that almost a year ago, CCCSWA issued a Request for Proposals. Hilton Farnkopf & Hobson was selected through a competitive process. Policy and Work Groups met in April through July, the final draft report was issued in November, and a presentation was made at the December 6, 1993 CCCSWA meeting. This process took longer than expected. The purpose of the study was to identify and examine options for post 1996 solid waste and recycling service operations. In doing that, HFH it was felt that it was important to try to develop a consensus among opinion leaders. Workshops were held in an effort to help drive that consensus. 01 18 94 14 Mr. Hilton stated that the current San Ramon, Walnut Creek, and Central Contra Costa Sanitary District franchise agreements expire in March 1996. There are nine municipal agencies and 224,000 residents in these service areas. Two hundred twenty-six thousand tons of waste per year is generated and 36,400 tons are diverted. There is a diversification of terrain, differences in customer mix, diversification of services, and a wide range of rates. Mr. Hilton stated that the number of agencies involved and the differences among them make this one of the more complex procurements he has been involved with. Mr. Hilton stated that the objectives of the project were to try to set up an organizational structure that would: . Minimize costs; . Minimize the organizational duplication that exists around solid waste matters; . Allow for subsidies between residential and commercial and from jurisdiction to jurisdiction; and . Maintain a competitive environment. The following alternatives were identified and evaluated based on the objectives outlined above. . One franchise for the entire area . One franchise for two or more districts . . One franchise for each service for the entire area Separate franchise(s) for each franchisor . Permit system In response to a question from Member Menesini, Mr. Hilton described the current franchising situation. Mr. Hilton stated that based on the objectives for the process, a rating was given to each of the alternatives identified. Mr. Hilton reviewed the evaluation of alternatives as set forth in the report. Mr. Hilton stated that as areas of cost savings are considered, potential savings are grouped into three areas: 1) operating costs; 2) general and administrative costs; and 3) contract and AB 939 administrative costs. Mr. Hilton stated that when you look at the potential cost savings and recommended alternatives, the status quo could be maintained to some extent; however, that would not achieve some of the efficiencies as well as other alternatives recommended in the report. Mr. Dolan stated that HFH was hired by CCCSWA, not the District, to look at alternatives under which CCCSWA would franchise in the future. That was the starting premise. Recognizing that there may not be unanimity on the Board relative to the question of whether or not the District, either as a member of CCCSW A or independently, would want to continue franchising in the future. This issue should be addressed. But, regardless of what future role of the District, staff would not recommend extension of this particular franchise document. Mr. Hilton stated that cost efficiencies are probably greatest with one contract. When the objective of maintaining a competitive environment is considered, there is a disadvantage in terms of having one contractor service the entire area, both from the perspective of controlling the contract and in responsiveness to the needs of the customers. Mr. Hilton stated that the responsiveness of the company is more a condition of management attitude than size however. Mr. Hilton stated that out of the evaluation process, HFH developed a series of recommendations. The two highest ranked alternatives were one franchise for the entire area and one franchise broken into two or more districts. Mr. Hilton stated that he has seen companies come in and compete from time to time for the marketplace and customers benefit from that. But what tends to happen over time, is that the rates 01 18 94 15 charged by different competing companies get very close to each other and so over time rates go up even though there is an appearance of a competitive environment. In addition, it is very difficult to manage AB 939 requirements and provide successful waste diversion programs when there are literally scores of companies providing services as there could be in a competitive environment. Finally, franchising by jurisdictions can become burdensome administratively and cost efficiencies are lost. Mr. Hilton stated that it is recommended that CCCSWA manage the procurement process on behalf of the franchisors. There are some issues in terms of membership on CCCSWA. The participation of the County is an important issue. The County was asked to designate someone for the Policy and Work Groups on this project. County representatives attended most of the meetings but they did not participate in ranking alternatives when asked to do so. Deputy General Manager Paul Morsen, CCCSWA Executive Director Fred Davis, and CCCSWA Board Members have tried to work with the Board of Supervisors, but the issue has not yet been resolved. Because of the County's authority and responsibility for managing solid waste in the unincorporated areas, it is important to have their participation. The County announced a year or two ago their policy that they intended to franchise in the unincorporated areas. However, they have done little to implement franchises in those areas. Mr. Kenton L. Aim, Counsel for the District, entered the meeting at the hour of 3:38 p.m. Mr. Hilton stated that in terms of the service areas, it is recommended that separate proposals be issued for two districts. Mr. Hilton described the two districts, highlighting location, population, tonnage generated, types of services, and types of accounts. An effort was made to divide the districts evenly based on these factors. Mr. Hilton reviewed the implementation plan, highlighting key dates in the plan. Mr. Hilton stated that 1996 may seem to be a long way off, but these issues take time to resolve, particularly when you are trying to build a consensus among nine different agencies with different rates, customer mixes, levels of services, and so on. Mr. Hilton stated that the franchise indicates a March 1994 deadline by which time the haulers would be notified that the franchisors do not intend to extend the current franchise agreements. Even if the Board is unsure at this point, it is better to give notice to assure that no options are lost. Discussion followed concerning the breakdown of residential and commercial accounts, and subsidies and their impact on rates. Mr. Hilton stated that this issue came up at the December 6, 1993 CCCSWA meeting; and it was noted that even if there is only one franchise, it is possible to do a cost benefit analysis and set rates accordingly. CCCSWA must decide whether to have uniform rates throughout a district or to have a jurisdiction- based rate structure. In either case, operating efficiencies should be realized. In response to a question from President Rainey, Mr. Hilton stated that it is intended to go out for proposals on collection, recycling, and green waste. Separate or combined proposals could be submitted. Mr. Ronald Proto, General Manager of Valley Waste Management (VWM), reiterated VWM's position concerning the consultant's recommendations. Mr. Proto stated that the consultant found that if the area were managed as two collection districts, there would be economies in operating costs, and general and administrative costs. Potential economies cited included reduced number of officers and managers, one billing system, one customer service department, and minimization of duplicative efforts. VWM currently has approximately 80 percent of the customers in the services areas included in the study. VWM has only one General Manager, one billing system, and one customer service section. Associated administrative costs are apportioned to the customers in each jurisdiction. Trucks are used in other jurisdictions on days when there is not a full route. Mr. Proto questioned the advantage to be gained by changing the present system. Mr. Proto stated that no credit is given to Valley Waste Management, Pleasant Hill Bayshore Disposal, or Orinda-Moraga Dispose-All for having served their customers for more than 40 years, providing excellent service in difficult-to-serve areas. Mr. Proto stated that the Board must consider the value given to customers for the dollar. Collection, recycling, green waste collection, and annual cleanups are all provided for one cost. In many jurisdictions, annual cleanups are billed separately and recycling is included on the tax bill. Mr. Proto stated that the Board must consider the fact that customers are 01 lR Q4 16 getting good value for their dollar. Mr. Proto stated that the only potential savings are in the area of administrative costs for AB 939 and possibly joint rate-setting. Mr. Proto stated that the issue with garbage rates in this area is not collection or landfill disposal, but rather the interim transfer station costs. Emphasis should be placed on reduction of the transfer station cost in order to achieve savings for customers. Mr. Proto stated that the HFH report assumes that every jurisdiction will have the same service. That is not the case at this time. Some areas have automated collection and some do not. Major changes would be required for all areas to have the same service. In closing, Mr. Proto again asked that the Board consider the value the customers are receiving and retain the current franchising arrangement. Discussion followed concerning the cost at the Davis Street transfer station. Following discussion, it was moved by Member Dalton and seconded by Member Menesini, that consideration of the draft letters notifying haulers that the District does not intend to extend the current franchise agreements beyond February 28, 1996, was delayed until February 1994 when the full Board will be present. There being no objection, the motion was approved with Members Hockett and Clausen being absent. 7. CORRESPONDENCE a. NOTE RECEIPT OF LETTER DATED JANUARY 4. 1994 FROM T.Y. AND RUTH SHEN. OF ORINDA. REGARDING YARD WASTE DROP-OFF PROGRAM: CONSIDER DRAFT RESPONSE Receipt of the letter dated January 4, 1994 from T.Y. and Ruth Shen, of Orinda, regarding the yard waste drop-off program was noted and the draft response was approved with minor modification capitalizing the words "State of California mandated" in the fourth line. 8. APPROVAL OF MINUTES MINUTES OF JANUARY 6. 1994 a. It was moved by Member Menesini and seconded by Member Dalton, that the minutes of January 6, 1994 be approved as presented. There being no objection, the motion was approved with Members Hockett and Clausen being absent. 9. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED JANUARY 18. 1994 a. Member Menesini, member of the Budget and Finance Committee, stated that he and Member Dalton reviewed the expenditures and found them to be satisfactory. It was moved by Member Menesini and seconded by Member Dalton, that the Expenditure List, dated January 18, 1994, including Running Expense Check Nos. 79722-79879 and Sewer Construction Check Nos. 13660-13692, be approved as recommended. There being no objection, the motion was approved with Members Hockett and Clausen being absent. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 11. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, stated that as discussed with the Board a number of times in the past, the District is constrained on work that can be done with District employees by the Public Contract Code bidding limit. The District is currently engaged in an effort to redesign the 01 18 94 2) 3) 4) b. 17 way the District provides its services. Staff is looking at ways of providing equal or better quality service at reduced cost. A major area of cost savings will be labor. If labor savings are achieved, productive work must be found for employees in other areas of the District. Staff believes that the most productive area is small capital projects on the plant site. Staff has looked at the possibility of trying to get some legislative relief and is working with Assemblyman Campbell's office in thpt regard. It is proposed that the District may exclude from the definition of district project in Section 20801.5 of the Public Contract Code, any project which meets the following criteria: a) the project is conducted by District staff; b) the projects consists of- the repair, replacement or reconstruction of existing sewerage facilities; c) the project is classified as statutorily or categorically exempt from the California Environmental Quality Act under Sections 21080 or 21084 of the Public Resources Code; and d) the project is located on property owned in fee by the District. Mike Dillon, Executive Director and Lobbyist for the California Association of Sanitation Agencies (CAS A), has agreed to assist the District in this effort. Mr. Dillon's fee will be $2,000 a month for as long as the bill is active, not to exceed $12,000. Discussion followed concerning Mr. Dillon's fee and the importance of this legislation to the District work redesign efforts. Mr. Dolan, General Manager-Chief Engineer, stated that like all employers, the District has a need to properly manage its training program. In a rapidly changing world, District employees must learn the most up-do-date information available in their fields of specialty. In addition, the training program must be run efficiently, addressing the need to get the most for the money and not spend public dollars inefficiently or on training efforts that do not offer reasonable hope of return. After a discussion with the Board early last fall, new reporting procedures were implemented. These new procedures have produced the October-December 1993 Training/Conference Summary presented to the Board. Following discussion, it was the consensus of the Board that the new reporting format and additional information provided are informative and useful. Mr. Dolan thanked President Rainey for her thoughtful comments at the High Performance Leadership Workshop held on Jant:Jary 13, 1994. Her comments were supportive, wise, and understanding of the District's goal of savings public money while complying with growing environmental regulations. Mr. Dolan announced that the District expects to receive an application for annexation from Shappell for the Country Club at Gale Ranch. Mr. Dolan described the location of the property and indicated that staff intends to make a presentation on this item in February 1994. COUNSEL FOR THE DISTRICT None c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS None 01 94 18 18 12. ANNOUNCEMENTS President Rainey announced that the Local Agency Formation Committee (LAFCO) will conduct a workshop on AB 1335, the Gotch Bill, relating to LAFCO's consolidation, reorganization authority and special district representation on LAFCO. The workshop will be held on Wednesday, February 16, 1994, at 1 :30 p.m. in Room 107, Board of Supervisors Chambers, Martinez, California. 13. CLOSED SESSION INITIATION OF LITIGATION a. Pursuant to Government Code Section 54956.9(c), on the advice of Counsel based on existing facts and circumstances, the Board of Directors of the Central Contra Costa Sanitary District has decided to initiate or is deciding whether to initiate litigation. At 5:04 p.m., President Rainey declared the closed session to discuss litigation pursuant to Government Code Section 54956.9(c). At 5: 12 p.m., President Rainey concluded the closed session and reconvened the meeting into open session. 14. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION The President of the Board of Directors was authorized to enter into an additional tolling agreement with St. Mary's College regarding a land subsidence dispute. 15. ADJOURNMENT There being no further business to come before the Board, President Rainey adjourned the meeting at the hour of 5:13 p.m. to reconvene at 4:30 p.m. on January 27, 1994 at 1395 Civic Drive, Walnut Creek, for the Central Contra Costa Solid Waste Authority meeting at which the staffing options for the Solid Waste Regional Coordinating Council will be among the items discussed. President of the Board of Dir tors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: S, e ry of the Central. ntra CöSta Sanitary District, County of Contra Costa, State of California 01 18 94