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HomeMy WebLinkAboutBOARD MINUTES 11-03-94 199 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON NOVEMBER 3, 1994 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 3:08 p.m. on November 3, 1994. President Rainey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Hockett, Rainey ABSENT: Members: Dalton 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member Hockett, that the Consent Calendar, consisting of Items a. through h., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 94-092 accepting work and Offers of Dedication from Shapellindustries, Inc., Job 5005, Parcel 1, was adopted and recording was authorized. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Rainey NOES: Members: None ABSENT: Members: Dalton b. Resolution No. 94-093 accepting work and Offers of Dedication from Walter E. Haught, et ai, Job 4941, Parcel 1, was adopted and recording was authorized. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Rainey NOES: Members: None ABSENT: Members: Dalton c. Resolution No. 94-094 accepting work and Offers of Dedication from Adolph J. Kneepers, et ux, Job 4941, Parcel 2, was adopted and recording was authorized. . Motion approved on the following vote: AYES: Members: Menesini, Hockett, Rainey NOES: Members: None ABSENT: Members: Dalton 11 03 94 200 d. Resolution No. 94-095 accepting work and Offers of Dedication from Robert K. Taylor, et ux, Job 4941, Parcel 3, was adopted and recording was authorized. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Rainey NOES: Members: None ABSENT: Members: Dalton e. The Grant of Easement Deed from Granville B. Strunk and Ora F. Strunk, 853 Revere Road, Lafayette, was accepted at a cost of $500 for the Knox Drive Sewer Replacement Project, DP 4602; staff was authorized to record said Grant of Easement Deed with the Contra Costa County Recorder; and Resolution No. 94-096 was adopted to that effect. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Rainey NOES: Members: None ABSENT: Members: Dalton 1. The Consent to Dedication to Contra Costa County, M.S. 126-90, Job 488, Parcel 2, was approved; the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said document; and Resolution No. 94-097 was adopted to that effect. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Rainey NOES: Members: None ABSENT: Members: Dalton g. Authorization was given for P.A. 94-11 (Alamo) to be included in a future formal annexation to the District. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Rainey NOES: Members: None ABSENT: Members: Dalton h. A Public Notice was authorized to set a Board Workshop on November 17, 1994 and a Public Hearing on December 1, 1994 to receive public comment on the request for an increase in refuse collection rates submitted by Orinda Moraga Dispose-All. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Rainey NOES: Members: None ABSENT: Members: Dalton 11 03 4. CAll FOR REOUESTh.JO CO~S OUT OF ORDER 94 201 Mr. Roger J. Dolan, General Manager-Chief Engineer, suggested that Items 6.a., Solid Waste, and 1 O.a., Budget and Finance, be taken out of order to accommodate interested persons in the audience. The Board concurred. President Rainey proceeded to Item 6.a., Solid Waste. 6. SOLID WASTE a. ESTABLISH REFUSE COLLECTION RATE DECREASE FOR VALLEY WASTE MANAGEMENT EFFECTIVE OCTOBER 1. 1994 Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Paul Morsen, Deputy General Manager, who stated that all of the waste reduction services required by AB 939, such as recycling, green waste diversion, and household hazardous waste collection, have added to solid waste collection rates. In addition, in Contra Costa County, disposal costs are extraordinarily high at $77/ton, comprising approximately, 40 percent of the customers' garbage bill. Mr. Morsen stated that Central Contra Costa Sanitary District (CCCSD) joined with the Cities of Walnut Creek and San Ramon to seek ways to cut the cost of disposal, looking at many alternatives. The alternative that has produced the greatest results so far is competition. Recognizing that the current franchise agreements expire in 1996, CCCSD has joined with the City of Walnut Creek through the Central Contra Costa Solid Waste Authority (CCCSWA) in developing a Request for Proposals (RFP) for Solid Waste Collection and Disposal Services Post 1996. The objectives of the RFP are to: . Create a competitive environment; . Effect long-term disposal savings and stability; . Create an opportunity for innovative technology application; . Effect savings for ratepayers; and . Maximize diversion of the wastestream. Mr. Morsen stated that last summer review of the RFP document began. In the midst of that review, a long-term (8 to 10-year) proposal from Waste Management for collection and disposal, and three short-term (16-month) proposals for disposal, from Garaventa/Richmond Sanitary Service/Potrero Landfill, Browning Ferris Industries/Acme Transfer Station/Keller Canyon Landfill, and Waste Management/Altamont Landfill, were received and reviewed. Mr. Morsen stated that the Valley Waste Management long-term proposal and the short-term disposal proposals from Garaventa/RSS and BFI were rejected. Mr. Morsen provided an overview of the factors relating to each of the proposals as set forth in the position paper, noting the various reasons for rejection of the proposals including insufficient cost savings, loss of public trust if the RFP process were abandoned in liew, and no long-term guarantee of disposal rates. Staff recommends that the District: . Proceed with the RFP through CCCSW A; . Enter into a short-term disposal agreement with Waste Management, Inc.; and . Set rates for CCCSD ratepayers providing for a 20 percent reduction in all garbage collection rates. Discussion followed with regard to disposal rates at Keller Canyon Landfill, the favorable results produced from the competitive environment, and the successful negotiations for more beneficial rates for the ratepayers. Member Menesini stated that the CCCSD Board has fostered the competitive environment by supporting the search for less costly disposal alternatives. Following discussion, it was agreed that copies of the RFP documents be provided to the Board for their input prior to distribution. 11 03 94 202 Mr. Kenton L. Aim, Counsel for the District, directed the Board's attention to the proposed letter of acceptance of the Valley Waste Management offer of October 13, 1994. Mr. Aim stated that two changes are proposed to the draft letter. It is proposed that the words "CCCSD and" be deleted from Item 8, page 3 of the letter, and that the language in Item 6, on page 2, dealing to collection and payment of litigation expenses related to the Acme Landfill litigation, be clarified. Following discussion, it was moved by Member Menesini and seconded by Member Hockett, that the Valley Waste Management offer of October 13, 1994 be accepted and that the letter of acceptance be approved with the modifications noted above. There being no objection, the motion was approved with Member Dalton being absent. It was moved by Member Hockett and seconded by President Rainey, that staff be authorized to proceed with the RFP process through CCCSWA. Motion approved with Member Dalton being absent and Member Menesini voting no pending his review of the RFP documents. It was moved by Member Menesini and seconded by Member Hockett, that Resolution No. 94-098 be adopted, establishing a 20 percent decrease in refuse collection rates effective October 1, 1994 and adopting the commercial green waste rates. There being no objection, the motion was approved with Member Dalton being absent. President Rainey and Mr. Dolan expressed a special thanks to Messrs. Paul Morsen and Kent Aim and to the Valley Waste Management representatives for their diligent efforts in reaching this agreement. At this time, President Rainey proceeded to Item 10.a., Budget and Finance. 10. BUDGET AND FINANCE a. PRESENTATION BY FINANCIAL ADVISOR AND BOND COUNSEL ON LONG-TERM DEBT ISSUANCE Member Menesini stated that a Budget and Finance Committee Meeting and Board Workshop was held today to discuss long-term debt financing strategies with the District's financial advisor and bond counsel. Mr. Thomas Lockhard, partner in the firm of Stone & Youngberg, the financial advisor to the District, reviewed the options available for long-term debt issuance. It is recommended that the District issue long-term debt in the amount of $25 million using Revenue Installment Certificates of Participation (COPs) sold through competitive bid sale to be concluded by January 1, 1995. This would then become a debt and revenue pledge of the District. The term of the issuance (20, 25 or 30. years) has not yet been determined. Mr. Lockhard stated that the issuance will be very favorably received by the market, the rating agencies, and the purchasers of securities. Staff will be asking the Board to authorize the sale and the execution of appropriate documents at the November 17, 1994 Board Meeting. Mr. Michael D. Castelli, of Jones Hall Hill & White, reviewed the installment sale COP process and procedures. The sale will be backed by a net revenue pledge backed by the gross revenues of the District. Mr. Castelli highlighted the documents involved in the transaction including a trust agreement, an installment sale contract, and an assignment agreement. In addition, a non-profit corporation must be established as part of the debt issuance and certain actions must be taken by that body on November 17, 1994. Mr. Dolan, General Manager-Chief Engineer, stated that the Board Budget and Finance Committee, District staff, the financial advisor, and bond counsel reviewed the issues relating to long-term debt issuance in detail; and as General Manager-Chief Engineer, Mr. Dolan stated that he is confident and comfortable with going forward with the process. At this time, President Rainey reverted to the order of the agenda. 5. BIDS AND AWARDS 11 03 94 203 a. AUTHORIZE AWARD OF CONTRACT TO SG ENGINEERS AND CONSTRUCTORS FOR IRRIGATION IMPROVEMENTS PROJECT. DP 6101 Mr. Dolan, General Manager-Chief Engineer, recommended award of contract for the Irrigation Improvements Project to SG Engineers and Constructors, the low bidder at $33,250. Following discussion, it was moved by Member Menesini and seconded by Member Hockett, that award of contract be authorized to SG Engineers and Constructors, the lowest responsible bidder, at $33,250 for the Irrigation Improvements Project, DP 6101. There being no objection, the motion was approved with Member Dalton being absent. 6. SOLID WASTE ESTABLISH REFUSE COLLECTION RATE DECREASE FOR VALLEY WASTE MANAGEMENT EFFECTIVE OCTOBER 1. 1994 a. This item was taken out of order earlier in the agenda. 7. CORRESPONDENCE a. NOTE RECEIPT OF LETTER DATED OCTOBER 20.1994. FROM STANLEY F. AND MARGARET DANN. OF LAFAYETTE. REGARDING THE DRAINAGE SYSTEM INSTALLED BY THE MID-HILL SEWER PROJECT: REFER TO STAFF FOR RESPONSE Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Jay S. McCoy, Infrastructure Division Manager, who reported that in conjunction with the Mid-Hill Sewer Project, a drainage pipe was extended. The diagram attached to Mr. Danñ's letter shows a proposed driveway and drainage system that was not built as indicated. During the past week, Mr. McCoy stated that he has contacted the engineer for the Macias', the adjoining property owner. Mr. McCoy stated that he is in the process of trying to resolve this issue. Following discussion, receipt of the letter dated October 20, 1994, from Stanley F. and Margaret Dann, of Lafayette, regarding the drainage system installed by the Mid-Hill Sewer Project was noted, and the matter was referred to staff for resolution and response. 8. APPROVAL OF MINUTES MINUTES OF OCTOBER 6. 1994 a. It was moved by Member Hockett and seconded by Member Menesini, that the minutes of October 6, 1994, be approved as presented. There being no objection, the motion was approved with Member Dalton being absent. 9. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED NOVEMBER 3. 1994 Member Menesini, Chair of the Budget and Finance Committee, stated that he and Member Dalton reviewed the expenditures and found them in good order. It was moved by Member Menesini and seconded by Member Hockett, that the Expenditure List dated November 3, 1994, including Self-Insurance Check Nos. 100891- 100895, Running Expense Check Nos. 85152-85523, and Sewer Construction Check Nos. 14877-14935 and 85524-85552, be approved as recommended. Following discussion of the recruitment expense reimbursement, the motion was approved with Member Dalton being absent. 10. BUDGET AND FINANCE PRESENTATION BY FINANCIAL ADVISOR AND BOND COUNSEL ON LONG-TERM DEBT ISSUANCE a. This item was taken out of order earlier in the agenda. 11 03 94 204 11 None , ,. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 12. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) 2) 03 Mr. Dolan, General Manager-Chief Engineer, stated that when we look back on 1994 at Central San, one of the most impressive features of this year will surely be the number of difficult projects, process issues, and problems which have been tackled by District people working together with knowledge, focus, and determination. The Board has heard about the accomplishments of the Dewatering Process Redesign Team (PRT) and the various Collection System Operations (CSO) work redesign activities. The same approach is being used to deal with the HTE computer software difficulties, some organizational issues, safety information, in-house design/construction management, and furnace operations. One very important and impressive activity which the Board may not have heard much about is the maintenance activity done in the District's aeration tanks. Mr. Dolan introduced Mr. Wayne Miner, Machine Shop Supervisor, who described the aeration process and maintenance activities. Mr. Kent Von Aspern, Senior Engineering Assistant, reported on the work of the Aeration Basin Improvements Project Management Team (Steve Colberg, Marilee Davi, John Day, Warren Katchmar, Matt Mahoney, Dan McCown, Buzz Medeiros, Wayne Miner, and Kent Von Aspern). By analyzing what worked and what could be improved in Phase I of the Aeration Basin Improvements Project, this team was able to plan and implement an very successful Phase II. The number of actual work days required for Phase I of the Project was 49, compared to 33 work days in Phase II. There was a 29 percent reduction in costs, from $311,881 in Phase I to $220,200 in Phase II. The total cost for support of the team efforts was $8,000. There were non-monetary improvements as well. Because people working in the field were part of the planning of the project, there was good morale and a sense of pride connected with the project. The techniques and lessons learned will be used when the C and D passes of each tank are completed in 1995-1996. In closing, Mr. Von Aspern stated that the Aeration Basin Improvements Project was successful and the work redesign techniques helped make it better. President Rainey thanked Messrs. Miner and Von Aspern for the interesting and informative report and congratulated the team on the outstanding job they did. Mr. Dolan, General Manager-Chief Engineer, stated that the District has an obligation as a waste discharger to undertake pollution prevention efforts to minimize the discharge of known pollutants. Through some superior efforts of the District's Laboratory and Source Control people, organo-phosphate pesticides and copper contaminated wastes have been identified as high priorities for the District's Pollution Prevention Program. A public education program to be done in conjunction with the Alexander Lindsay Museum was identified as a cost effective way of engaging the public in meeting the pollution prevention goals. Lindsay was able to obtain the services of a dedicated advertising executive in preparing the ad copy. This individual created the eye catching sea lion/oil can television and billboard ads. The District had wanted to work with Lindsay and felt that they were working in c~ncert with the District on some newspaper and copy addressing disposal of household pesticides. Just before a previous Board Meeting, the latest draft of the ad copy was received and distributed to the Board. Member Menesini called after reading the copy and pointed out factual errors and misleading innuendo which had not been in earlier drafts. Staff went back to the ad writer who felt uncomfortable making some of the changes needed. Mr. Ken Grubbs, Public Information and Graphics 94 b. 205 Coordinator, took up the challenge of leading the effort to come up with an improved ad which is now ready for the Board's input and approval. Mr. Dolan introduced Mr. Grubbs who stated that the initial ads would not work and a new direction presented itself in the form of representatives from DowElanco. Staff worked with DowElanco and their ad agency to come up with a totally new concept. The District has not had to pay anything for this creativity and the pollution prevention public education budget has not been affected. Mr. Grubbs distributed and discussed the proposed layouts and rough articles for the brochures, self display (point of purchase), theater slides, and newspaper ad. It is planned that the brochure and shelf display will be in the stores by March 1995. The newspaper ad and theater slides will be run in April and May 1995 in time for the spring gardening season. There are sufficient funds in the budget to cover both production and placement of the ads. Mr. Grubbs recommended Board consideration of the proposed ads based on the following: . The visual message is dear, thought provoking, and stimulates a positive response; . The visual message compliments the written message so not as much text is needed; and . These materials portray the District as a leader in trying to solve a problem and not just pointing blame. Discussion followed wherein the Board provided input and suggestions. Mr. Grubbs thanked the Board for their comments and indicated that he would address the issues raised. President Rainey and Member Menesini thanked Mr. Grubbs for his efforts and congratulated him on the more positive and cooperative tone of the revised copy. . 3) Mr. Dolan, General Manager-Chief Engineer, stated that recently Member Menesini requested an overview of the District's insurance program. Coincidentally, the District is in the initial stages of a comprehensive insurance program review which was included in the current year's budget. So, rather than providing a comprehensive overview at this time, Mr. Dolan provided a report on the status and scope of the study. Ms. Erin A. Oberly, Risk Consultant and Chartered Property Casualty Underwriter, was selected to work with an Actuary to conduct the audit. The scope of the assignment includes evaluation of risks, prevention and mitigation, and funding. Changes will be recommended to the overall program to improve protection and/or to be more cost effective. The Actuary will analyze options for risk financing including self-insurance, commercial insurance, and membership in public agency pools. The District's existing guidelines for the Self- Insurance Fund will be reviewed; the effect of Governmental Accounting Standards Board, Ruling #10, on the District's self insurance funding methodology will be evaluated; and the insurance requirements imposed by the District on its contractors will be reviewed. A report will be made to the Board early in 1995 after the completion of the study. Recommended changes will be included in the 1995-1996 budget planning. 4) Mr. Dolan announced that Senior Chemist Phil Snyder and Chemist II Tri Nguyen will travel to Beverly, Massachusetts on November 7-11, 1994 for the Kratos Gas Chromatograph/Mass Spectrometer (GC/MS) training. This training was budgeted in the Capital Improvement Budget. 5) With a deep sense of regret, Mr. Dolan announced the death of Deputy Chief Engineer Robert Baker's wife, Nancy, in an airplane crash this week. Memorial services will be held on Saturday, November 5, 1994, at 1 :30 p.m. at Oakmont Memorial Park, 2099 Reliez Valley Road, Lafayette. COUNSEL FOR THE DISTRICT 11 0:-1 g4 206 None c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1 ) President Rainey reported on the October 27, 1994 meeting of the Central Contra Costa Solid Waste Authority (CCCSWA) at which the main topics of discussion were finalizing the draft Request for Proposals (RFP) for Solid Waste Collection and Disposal Services Post 1996 and Contra Costa County's membership in CCCSWA. Member Menesini reported on the Board of Supervisors' discussion with regard to joining CCCSW A, noting that there seemed to be a split between individual supervisors and also between the Board of Supervisors and County staff on the issue. Discussion followed concerning the draft RFP. It was agreed that staff will meet with Member Menesini to review the draft documents. 2) Member Hockett reported on the October 27, 1994 meeting of the Sanitation and Water Agencies of Contra Costa County at which the Dublin San Ramon Services District/East Bay Municipal Utility District proposed reclaimed water project was discussed. 13. ANNOUNCEMENTS President Rainey commended the Collection System Operations (CSO) Department staff for their quick response to a resident's complaint regarding a noisy manhole cover. Member Menesini announced that he was asked to Chair the Friends of the San Francisco Bay Estuary Education Committee. 14. ADJOURNMENT There being no further business to come before the Board, President Rainey adjourned the meeting at the hour of 5:45 p.m. in memory of Nancy Baker, wife of Deputy Chief Engineer Robert A. Baker. '- esident of the Board of Dire ors, Central Contra Costa Sanitary District, County of Contra Costa, State of-California COUNTERSIGNED: 11 03 94