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HomeMy WebLinkAboutBOARD MINUTES 05-07-92 84 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 7, 1992 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 3:00 p.m. on May 7, 1992. President Boneysteele called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Clausen, Dalton, Boneysteele ABSENT: Members: Starita, Rainey Members Starita and Rainey had advised staff that they would be unable LO attend this meeting and had requested that they be excused. 2. PUBLIC COMMENTS Mr. Ronald Proto, General Manager of Valley Waste Management, stated that the U.S. Environmental Protection Agency (EPA) is prepared to promulgate regulations limiting superfund contributions for small generators and municipalities to 4 percent. Mr. Proto stated that he would be happy to provide a packet of information to District staff. A list of names and addresses are included, if the Board should decide to express support. Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that District staff is aware of the issue and is tracking it, but would be happy to receive any additional information. 3. AWARDS AND COMMENDATIONS a. PRESENTATION OF ASSOCIATION OF ENVIRONMENTAL PROFESSIONALS "OUTSTANDING ENVIRONMENTAL ANALYSIS DOCUMENT" AWARD TO THE DISTRICT FOR THE PLEASANT HILL/A-LINE SEWER OVERFLOW PROTECTION PROJECT EIR Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Russell Leavitt, Planning Assistant, who stated that in October 1991, the Board of Directors certified the Final Environmental Impact Report (EIR) for the Pleasant Hill/A-Line Sewer Overflow Protection Project prepared by ESA. Since that time the Planning Division has closed out their efforts on these projects and the design work is progressing. At the Association of Environmental Professionals (AEP) Conference two weeks ago, Mr. Leavitt and the ESA project manager accepted the AEP Outstanding Environmental Analysis Document Award for the Pleasant Hill/A-Line Sewer Overflow Protection Project EIR on behalf of the District. This EIR was one of four that received this award. There were approximately 25 documents competing. Mr. Leavitt presented the award to President Boneysteele. President Boneysteele and Member Dalton congratulated Mr. Leavitt and District staff for their efforts, stating that significant progress has been made over the years in this area. 4. CONSENT CALENDAR It was moved by Member Clausen and seconded by Member Dalton, that the Consent Calendar, consisting of Items a. through d., be approved as recommended. a. The Board was advised of the close out of the Pleasant Hill/A-Line Facilities Plan and EIR Project (DP 4271). This item was presented for the Board's information. No action was taken. b. The contract work for the Mt. Diablo Siphon Sliplining Project (DP 4535B) was accepted and the filing of the Notice of Completion was authorized. 05 07 92 85 Motion approved on the following vote: AYES: Members: Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Starita, Rainey c. May 21, 1992, at 3 p.m. was set as the date and time for a public hearing prior to considering approval of a Negative Declaration and the Collection System Operations (CSO) Yard Renovation Project. Motion approved on the following vote: AYES: Members: Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Starita, Rainey d. The attendance of Ms. Bonnie Allen, Risk Manager, was authorized at the June 14-19, 1992 meeting of the National Safety Council Executive Committee - Public Utilities Section in Hershey, Pennsylvania, at a cost of $1,450. Motion approved on the following vote: AYES: Members: Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Starita, Rainey 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Mr. Dolan, General Manager-Chief Engineer, stated that requests have been received to take Items 14.a.1) and 3) out of order. President Boneysteele proceeded to Item 14.a.3), Tri-Valley Wastewater Authority Update. a. 14. REPORTS GENERAL MANAGER-CHIEF ENGINEER 3) Mr. Dolan, General Manager-Chief Engineer, stated that in the last two weeks, a number of meetings have been held relating to the Tri-Valley Wastewater Authority (TWA) Long Range Wastewater Management Plan for the Livermore Amador Valley. Last week the Walnut Creek City Council decided to send a letter to TWA opposing the Central Contra Costa Sanitary District (CCCSD) option. On May 4, 1992, there was an internal briefing session at which policy issues were discussed with TWA Committee Members Clausen and Rainey. On May 5, 1992, there was a joint meeting with TWA elected officials. Business issues for any future contract and the feasibility of the project were discussed from the standpoint of local public opinion. Complications concerning grant funded facilities and financing costs for TWA facilities were identified. On May 6, 1992, TWA Committee Members Clausen and Rainey and staff met with representatives of the Martinez City Council. The City Council representatives demanded a second EIR and had some interest in mitigation. Tonight, May 7, 1992, Mr. Robert Baker, Deputy Chief Engineer, will attend the Mayors' Conference meeting where Mr. John Nejedly will present his position opposing the proposed project. A fact sheet and copies of correspondence have been provided to the Board. 05 07 92 86 Mr. Dolan introduced Mr. Baker, Deputy Chief Engineer, who briefly summarized issues relating to the proposed TWA project. Mr. Dolan stated that in the dialogue District staff has had with all the parties, there has been an understanding that CCCSD is not taking the lead on this project and the proposed TW A project has not come to the CCCSD Board. District staff are not proponents of the proposed project, but simply explaining CCCSD's position. The matter will come to the CCCSD Board of Directors for consideration after TWA has certified the EIR. At this time, President Boneysteele proceeded to Item 14.a.1), the Solid Waste Customer Satisfaction Survey. 14. REPORTS GENERAL MANAGER-CHIEF ENGINEER a. 1 ) Mr. Dolan, General Manager-Chief Engineer, stated that pursuant to the Board's direction at a recent meeting, Ms. Colleen Camicia, Public Information and Graphics Coordinator, has developed a draft questionnaire based on the questionnaire used previously to evaluate the customers' appraisal of the quality of the service which they are receiving. The draft questionnaire contains questions on recent changes in service. Mr. Dolan requested comments from the Board. Board comments were made relating to both the cover letter and the draft questionnaire. Ms. Harriette Heibel, of Valley Waste Management, also provided comments. Following discussion, it was the consensus of the Board that staff finalize the questionnaire incorporating the Board and Ms. Heibel's comments. At this time, President Boneysteele reverted to the order of the agenda. a. 6. SOLID WASTE CONSIDER ISSUES RAISED BY VALLEY WASTE MANAGEMENT IN CONNECTION WITH THE FULL-SCALE IMPLEMENTATION OF THE RESIDENTIAL AUTOMATED COLLECTION PROGRAM Mr. Dolan, General Manager-Chief Engineer, stated that this item was discussed during the last solid waste rate-setting process and again at the last Board meeting. The Board has been presented with a complete position paper, staff analysis, and correspondence from Valley Waste Management. Mr. Dolan introduced Mr. Walter N. Funasaki, Finance Officer, who reviewed the monthly per customer cost impact of the requested changes in the depreciable life of the automated collection equipment, the interest used to calculate the Capital Use Charge, and the Cost of Service Modification factor. Mr. Funasaki stated that depreciating the automated collection equipment over a five year life rather than eight years would change the automated service discount from $1.85 per customer per month decrease to $1.25 per customer per month. This discount will be provided as the new automated service is implemented. Mr. Dolan stated that the shortening in the depreciable life to five years would spread the depreciation differential more evenly than the earlier staff proposal of using an eight year life for three years and adjusting the depreciation expense for 1 995 so the depreciated value was equal to the salvage value at the end of the franchise period. Mr. Funasaki stated that with regard to calculating the Capital Use Charge using the requested Merrill Lynch Bond Index for 1 - 10 Year High Quality Corporate Bonds, instead of the Two-Year Treasury Note, would have the effect of adding $'.05 per month per can to the rates. Mr. Funasaki stated that the cumulative effect would be $.65 per can per month. This difference would go into the balancing account to be considered in setting rates for 1 993. 05 07 92 87 Mr. Dolan stated that the position stated above and the draft letter to Valley Waste Management in the agenda packet were prepared based on the direction given by the Board at the last meeting. Member Clausen suggested that copies of the letter be sent to the Town of Danville and the City of Lafayette to keep them informed of the status of the automated collection program. It was moved by Member Clausen and seconded by Member Dalton, that the draft letter to Valley Waste Management in resolution of the issues raised in the refuse collector's April 2, 1992 letter be approved as presented and that copies be sent to the Town of Danville and the City of Lafayette. There being no objection, the motion was approved with Members Starita and Rainey being absent. 7. ADMINISTRATIVE 8. CONSIDER AN APPEAL TO THE BOARD OF DIRECTORS OF A DENIAL OF AN EMERGENCY WITHDRAWAL REQUEST BY THE DEFERRED COMPENSATION PLAN ADVISORY COMMITTEE Mr. Dolan, General Manager-Chief Engineer, stated that this matter has been resolved and the item has been removed from the agenda. 8. TREATMENT PLANT a. AUTHORIZE ALLOCATION OF $15.000 FROM THE TREATMENT PLANT CONTINGENCY ACCOUNT FOR METEOROLOGICAL STATION UPGRADE PROJECT (DP 10089) Following discussion of the Bay Area Air Quality Management District guidance document, it was moved by Member Clausen and seconded by Member Dalton, that the General Manager-Chief Engineer be authorized to allocate $15,000 from the Treatment Plant Contingency Account for Meteorological Station Upgrade Project, DP 10089. There being no objection, the motion was approved with Members Starita and Rainey being absent. 9. CORRESPONDENCE a. NOTE RECEIPT OF LETTER FROM MR. TOM HANSON. ASSISTANT CITY MANAGER OF THE TOWN OF DANVILLE. CONCERNING FACILITIES CAPACITY FEES FOR RESTAURANTS; CONSIDER RESPONSE Mr. Dolan, General Manager-Chief Engineer, stated that this was included in the agenda because the Board has expressed a specific interest in this matter although this is not a Board level item. A draft response has been prepared. for the Board's consideration. Following discussion of the draft response particularly with regard to the possible implementation of "installment payments," it was the consensus of the Board that the letter from Mr. Tom Hanson, Assistant City Manager of the Town of Danville, be referred to staff for response. President Boneysteele stated that in the future, agency staff communications received by the District should be answered by District staff and need not be calendared on the Board agenda. Mr. Dolan agreed and thanked President Boneysteele for that guidance. b. RECEIVE LETTER FROM ASSEMBLYMAN BILL JONES CONCERNING THE DISTRICT'S OPPOSITION TO AB 3214. PROPOSED PROPERTY TAX SHIFT Receipt of the letter from Assemblyman Bill Jones concerning the District's opposition to AB 3214, proposed property tax shift, was noted and staff was directed to prepare a response for President Boneysteele's signature. 05 07 92 88 10. APPROVAL OF MINUTES a. MINUTES OF ADJOURNED REGULAR MEETING OF MARCH 26. 1992 MINUTES OF REGULAR MEETING OF APRIL 16. 1992 b. It was moved by Member Clausen and seconded by Member Dalton, that the minutes of the Adjourned Regular Meeting of March 26, 1992, be approved as amended deleting the phrase "and had requested that they be excused," from the third paragraph on page 1; and that the minutes of the Regular Meeting of April 16, 1992, be approved as presented. There being no objection, the motion -was approved with Members Starita and Rainey being absent. 11. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED MAY 7. 1992 Member Clausen, member of the Budget and Finance Committee, stated that in the absence of Member Starita, he and President Boneysteele reviewed the expenditures and found them to be satisfactory. It was moved by Member Clausen and seconded by President Boneysteele, that the Expenditure List dated May 7, 1992, including Self-Insurance Check Nos. 100597- 100602, Running Expense Check Nos. 67344-67809, Sewer Construction Check Nos. 10974-11053, and Payroll Check Nos. 27364-27650, be approved as recommended. Following discussion of Warrant No. 67524 to Colusa Landfill, the motion was approved with Members Starita and Rainey being absent. 12. BUDGET AND FINANCE a. APPROVE THE 1992-1 993 EQUIPMENT BUDGET FOR INCLUSION IN THE 1992- 1993 DISTRICT BUDGET Mr. Dolan, General Manager-Chief Engineer, stated that the proposed 1992-1993 Equipment Budget was reviewed with the Capital Projects Committee and with the full Board at the last Board meeting. If the Board has no further questions, it is recommended that the 1992-1993 Equipment Budget be approved for inclusion in the 1992-1993 District Budget. It was moved by Member Dalton and seconded by Member Clausen, that the 1992-1993 Equipment Budget be approved for inclusion in the 1992-1993 District Budget to be adopted on June 18, 1992. There being no objection, the motion was approved with Members Starita and Rainey being absent. 13. EMERGENCY SITUATIONS REQUIRING BOARD ACTION Mr. Kenton L. Aim, Counsel for the District, stated that a matter has come up since the posting of the Board agenda. Although this is not an emergency, the Brown Act provides that on a two-thirds vote of the legislative body, or a unanimous vote of those present if less than two-thirds of the legislative body is present, that such a matter can be acted upon. Mr. Aim stated that the issue relates to a lawsuit that may be filed against the District in the near future. Pacific Bell has alleged that a District contractor, Ranger Pipeline, hit a conduit during construction. It was hoped that this matter could be settled before the deadline for filing the lawsuit at the end of the week of May 11, 1992. A day or two ago, the District was informed that the Risk Manager for Pacific Bell has had a family emergency and would be unable to complete the settlement negotiations before the deadline. A request has been received to toll the statute of limitations for a short period of time to allow the settlement negotiations to be completed. It was moved by Member Clausen and seconded by Member Dalton, that this matter be considered by the Board of Directors pursuant to the provisions of the Brown Act which 05 07 92 89 allow consideration of an item which occurred following the posting of the agenda. The motion was approved on the following roll call vote: AYES: Members: Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Starita, Rainey Mr. Aim stated that the District will rely on the contractor's insurance carrier in this matter and must get authorization from the insurance carrier to toll the statute of limitations so as not to jeopardize the District's coverage. Following discussion, it was moved by Member Clausen and seconded by Member Dalton, that to allow settlement negotiations with Pacific Bell and Ranger Pipeline to continue, the statute of limitations be tolled for 60 days subject to consent of the insurance carrier of the contractor, Ranger Pipeline. The motion was approved on the following roll call vote: AYES: Members: Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Starita, Rainey 14. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) Discussion of the Solid Waste Customer Satisfaction Survey was taken out of order earlier in the agenda. 2) Mr. Dolan, General Manager-Chief Engineer, stated that new information has been received since the Board authorized issuance of a three-month temporary waste hauler permit to Stone Portable Toilets effective March 11, 1992. The temporary waste hauler permit will expire June 11, 1992. Mr. Dolan introduced Mr. David R. Williams, Planning Division Manager, who stated that at the time the Board authorized issuance of the temporary waste hauler permit, the Board instructed District staff to conduct a field audit to verify the location and amount of waste hauled by Stone Portable Toilets. Mr. Williams stated that the Board will recall that Mr. Oblaczinski, the owner of Stone Portable Toilets, stated that more than half of the Stone Portable Toilets units were located at the Chevron facility and the contents of those units was disposed of at the Chevron Treatment Plant. Mr. Williams stated that although it does not impact the District's temporary permit, it was recently learned in a telephone call from a manager at Chevron that full Stone Portable Toilets trucks were coming on the Chevron site and dumping wastes collected from other customers. This was not in accordance with the contract between Chevron and Stone Portable Toilets. / Mr. Williams stated that the District's waste hauler permit does not allow the waste hauler to dispose of waste collected outside Contra Costa County. District staff has learned that Stone Portable has some toilets in Alameda, Solano, and San Joaquin Counties and possibly in San Francisco at various construction sites; although all manifests reviewed by District staff in the field audit showed only Contra Costa County portable toilets. To staff's knowledge, Stone Portable currently has no permits to dump at any location other than at Central Contra Costa Sanitary District. However, Stone Portable has applied to Vallejo Sanitation and Flood Control District for a permit. Consequently, the District is the only place Stone Portable can legally dispose of waste although they are servicing portable toilets out of the County. 05 07 92 90 05 07 Mr. Williams reported that the Stone Portable permit to dump at the Delta Diablo Sanitation District (DDSD) facility has expired and DDSD has decided not to renew the permit. DDSD has assessed Stone Portable $7,500 in fines for the DDSD efforts in monitoring and testing during the one year period of the permit. DDSD spot checked the pumping station at the Stone Portable warehouse facility; and since March 11, 1992, DDSD has found two occurrences where portable toilet waste was disposed of there. When asked, Mr. Oblaczinski stated that he was washing down portable toilet units and that was the source of the waste. Mr. Williams stated that District staff did conduct the field audit as directed by the Board. District staff called ahead and asked Stone Portable to have the necessary information available that would indicate to the best of their ability that they were not illegally dumping. When District staff arrived at Stone Portable, Mr. Oblaczinski stated that most of the material was not available because the bookkeeper was off. When asked for a standard contract for wastes being received at CCCSD, Mr. Oblaczinski provided a contract for service within San Joaquin County. Mr. Williams stated that Stone Portable has about 100 units outside Chevron. It would appear that the amount of waste disposed of at the District roughly balances with the amount currently collected. The conditions of the field audit were uncomfortable. The air conditioner was broken and the door was stuck shut in the small trailer provided for audit. The copy machine was allegedly broken so it was not possible to make copies. District staff did the best they could under the circumstances. President Boneysteele thanked Mr. Williams for the update. 3) The Tri-Valley Wastewater Authority Update was taken out of order earlier in the agenda. 4) Mr. Dolan, General Manager-Chief Engineer, reported that President Boneysteele and Public Information and Graphics Coordinator Colleen Camicia drafted a series of letters concerning AB 3214, the proposed property tax shift, at the request of Senator Boatwright. Copies of those letters were provided to the Board. Discussion followed concerning efforts to schedule a meeting with Assemblyman Campbell to discuss the proposed property tax shift, the consequences of such a shift, and possible alternatives. 5) Mr. Dolan announced that the District is currently advertising for the 1991- 1992 Sewer Renovation Pipe Replacement Project consisting of approximately 10,000 lineal feet of pipe at 21 sites. The estimated cost of the project is $1. 7 million. 6) Mr. Dolan announced that Mr. Walter Funasaki, Finance Officer, attended the Board of Supervisors meeting on May 5, 1992, and commented on the Keller Canyon Landfill rate setting. It was evident that the Board of Supervisors had been misinformed on how the Keller site was originally identified. Supervisor McPeak believed that Mr. Boyd Olney found the landfill site, when in fact the site was identified in the 1984 Central Contra Costa Sanitary District/Contra Costa County Landfill Siting Study. This alleged discovery by Olney is part of the justification for the $10 million finder's fee that the Board of Supervisors may pass. Subsequently, this Board will be expected to pass it through to the ratepayers. Member Clausen requested that this matter be calendared for a report at the next Board meeting. 7) Mr. Dolan announced that Orinda-Moraga Disposal Service, Inc. failed to submit their annual audit by the March 31, 1992 due date and the April 30, 1992 extension of the due date. It is still not forthcoming. Staff will keep the Board apprised. If it slips any further, there could be an action. 92 10) 91 8) Mr. Dolan announced that the City of Orinda has proposed to construct a trail involving some property owned in fee by the District. Staff believes that a trail would be compatible with the District's use of the property. It is suggested that a real property agreement be written along the lines of the Contra Costa County agreement for the San Ramon Valley trail. Staff is working on a draft agreement which will be submitted to the Board in the near future. 9) Mr. Dolan announced that the Plumbers' Union has raised some issues with the Tri-Valley Wastewater Authority (TWA) Environmental Impact Report (EIR) and with the bid on the Headworks Project which became moot when all bids were rejected. The Plumbers' Union wants union labor stipulation on District projects. The Plumbers' Union has also approached other public agencies in this regard. It is expected the District will again be approached by the Plumbers' Union when the Headworks Project is rebid. Mr. Dolan commended the Department Managers and their staff for the work they did on the Operations and Maintenance (O&M) Budget. They were asked to keep the budget as lean as possible and budget no more than the cost of living increase recognizing that labor costs would increase by the compound effect of the cost of living and merit increases. Operating costs are increasing as a result of new regulations as well. The departments have done a very good job. Mr. Dolan stated that this was done because there are three problems which may make him recommend that the Board approve a substantial increase in the Sewer Service Charge. First, the District must cease drawing on reserves this year and actually contribute to reserves instead. Second, the District is at serious risk of losing ad valorem tax authority this year or next, leading to a $70 rate increase. The scrutiny on budgets that this will prompt gives special incentive to be very lean. Third, the District faces an almost certain requirement, even if we retain our taxing authority, of raising future capital revenue through the Sewer Service Charge; both to pay-as-you-go finance steady capital requirements and to pay debt service on peak capital needs. For these reasons, staff will be recommending a rate increase in the 8 to 10 percent range. It will be suggested that the excess of sewer service charge revenue over operating expenses be allocated in the following way: 1) payment to the Sewer Construction Fund of approximately $140,000 ($1/customer/year) to establish Board commitment to raise money for capital to strengthen the District's position (hopefully to lower the interest rates) in a future bond sale; 2) transfer of depreciation expense to the Sewer Construction Fund to cover depreciation of the type of equipment purchased through the equipment budget. This sum would offset the cost of equipment replacement; and 3) contribution to reserves. Mr. Dolan stated that during the coming year, the District will be looking at a small budget increase and a fairly large rate increase to strengthen our position next year. This matter will be calendared for Board discussion and consideration. b. COUNSEL FOR THE DISTRICT 1 ) Mr. Aim, Counsel for the District, stated that when the Local Improvement District (LID) 54 equalization fee was established, Member Clausen raised the question of the payment amount for properties connecting after the final year of the LID. The answer was that those properties pay nothing because the LID was paid off and it did not seem appropriate to receive money and put it into the General Fund. Member Clausen asked that bond counsel be consulted and that a different system be considered where there would be some payment made after the 20 years of the LID. Mr. Aim reported that bond counsel advised that once the bonds are paid off, the LID ceases to exist as a legal entity and the bond law no longer applies. Various scenarios were discussed relying on the rate-making laws applicable to the District including identifying the original property owners and paying the money to them, paying the money to the existing property owners, putting the money into the District's reserves. The option where the money is put into the District's reserves may not be permissible under the law. This matter was 05 07 92 92 brought back to the Board as a report and to get further direction. Following discussion, it was the consensus of the Board that no change be made to the current system for establishing equalization charges for Local Improvement Districts. c. SECRETARY OF THE DISTRICT 1 ) Ms. Joyce E. Murphy, Secretary of the District, distributed the Training/Conference Summary for the period January-March 1992. d. BOARD MEMBERS None 15. ANNOUNCEMENTS None 16. CLOSED SESSION None 17. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 18. ADJOURNMENT There being no further business to come before the Board, President Boneysteele adjourned the meeting at the hour of 5:39 p.m. President of the Board of Director Central Contra Costa Sanitary D' rict, County of Contra Costa, State of California COUNTERSIGNED: 05 0,7 92