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HomeMy WebLinkAboutBOARD MINUTES 05-21-92 93 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 21, 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 21, 1992. President Boneysteele called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Dalton, Starita, Boneysteele ABSENT: Members: Clausen, Rainey Member Clausen had advised staff that he would be unable to attend this meeting. Member Rainey entered the meeting at the hour of 3:01 p.m. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. RECEIVE THE NORTHERN CALIFORNIA TECHNICAL EMPLOYER OUTSTANDING PROGRAM AWARD FOR 1992 FROM THE CALIFORNIA COOPERATIVE EDUCATION ASSOCIATION (CCEA) Member Rainey entered the meeting at the hour of 3:01 p.m. Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that the District works with a number of universities to place students at the District as part of their educational program. Mr. Dolan introduced Ms. Darlene Ross, Personnel Analyst II, who stated that the District was selected this year as the Outstanding Technical Employer of the Year for Northern California by the California Cooperative Education Association (CCEA), a group of universities and employers throughout the state. Ms. Ross thanked the Board once again for their continuing support for the Cooperative Education Program at the District, stating that the program has been beneficial both to the students and the District. President Boneysteele thanked Ms. Ross and District staff for their efforts in obtaining this award for the District. It was moved by Member Starita and seconded by Member Dalton, that District staff be commended for their outstanding efforts in support of the District's Cooperative Education Program. The motion was approved by unanimous consent. b. RECEIVE THE CALIFORNIA WATER POLLUTION CONTROL ASSOCIATION (CWPCA) 1992 FILM FESTIVAL FIRST PLACE AWARD IN THE AMATEUR CATEGORY FOR THE CHLORINE TANK CAR MOVEMENT VIDEO Mr. Dolan, General Manager-Chief Engineer, stated that the District dedicates a significant amount of effort to educating employees and providing a safe working environment. Mr. Dolan introduced Mr. James M. Kelly, Plant Operations Division Manager, who stated that one of the most critical elements of training at the Plant is chlorine training. A year ago, Mr. Steven Colberg, Shift Supervisor in charge of training, recognized a need for additional training in this area. Mr. Colberg, assisted by Maintenance Technician II Michael Thornton and Mechanical Maintenance Technician 11\ Warren Katchmar, produced the Chlorine Tank Car Movement video which won the CWPCA 1992 Film Festival First Place Award. Mr. Kelly introduced Mr. Colberg who thanked Mr. Katchmar for his 05 21 92 94 computer work, Mr. Thornton for composing the original background music for the video, and Messrs. Brennan, Kelly, and Batts for their support of staff's efforts. Mr. Colberg presented the CWPCA 1992 Film Festival First Place Award to President Boneysteele. President Boneysteele commended Mr. Colberg and stated that staff deserves recognition for this outstanding piece of work and for improving the District's training and safety program. It was moved by Member Dalton and seconded by Member Rainey, that Messrs. Colberg, Thornton, and Katchmar be commended for their work on the Chlorine Tank Car Movement video. The motion was approved was unanimous consent. 4. CONSENT CALENDAR It was moved by Member Rainey 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 Stage 5B Hydraulic Capacity Expansion and Sludge Thickening Facilities Project (DP 3816). This item was presented for the Board's information. No action was taken. b. Public hearings were set on June 4, 1992 to receive public comment on the establishment of the 1992-1993 Sewer Service Charge rates and the collection of such charges, and prior year delinquent charges, on the County tax rolls. Motion approved on the following vote: AYES: Members: Rainey, Dalton, Starita, Boneysteele NOES: Members: None ABSENT: Members: Clausen c. A public notice was authorized advising that documentation used in the determination of the appropriations limit shall be available fifteen days prior to the Board Meeting to be held on June 4, 1992, at which the appropriations limit for the Sewer Construction Fund for the fiscal year 1 991-1992 will be established. Motion approved on the following vote: AYES: Members: Rainey, Dalton, Starita, Boneysteele NOES: Members: None ABSENT: Members: Clausen d. Staff was authorized to secure the services of an arbitrator in accordance with Step Four of the Grievance Procedure in the matter of the appealed grievance of Mr. Rodger Smith, Construction Inspector. Motion approved on the following vote: AYES: Members: Rainey, Dalton, Starita, Boneysteele NOES: Members: None ABSENT: Members: Clausen :05:21,." z~2 95 5. HEARINGS a. CONDUCT PUBLIC HEARING AND CONSIDER APPROVAL OF A NEGATIVE DECLARATION AND THE COLLECTION SYSTEM OPERATIONS (CSO) YARD RELOCATION AND IMPROVEMENT PROJECT Mr. Dolan, General Manager-Chief Engineer, stated that the Collection System Operations (CSO) Yard Relocation and Improvement Project was precipitated by the Caltrans taking of the District's property. Mr. Dolan 'introduced Mr. Russell Leavitt, Planning Assistant, who stated that while the public hearing on the Negative Declaration and CSO Yard Relocation and Improvement Project is not required by the California Environmental Quality Act (CEQA) or the District's procedures, it does provide the public with another opportunity to comment on the project. The proposed project involves reconfiguring the CSO yard to accommodate the taking of approximately one acre of land by Caltrans. Mr. Leavitt described the actions involved in the proposed project as set forth in the position paper and Negative Declaration. Staff has concluded that a Negative Declaration is the appropriate document to address the environmental effects of the project. No comments on the proposed Negative Declaration were received during the comment period. Mr. Leavitt stated that staff will make corrections to the data presented in the Negative Declaration. The District actually used the present CSO yard location as the headquarters office building from the mid to late 1950's to 1982 when the headquarters office was moved to Martinez. Mr. Leavitt recommended that the Negative Declaration be approved with that correction. At 3:14 p.m., President Boneysteele opened the public hearing to receive comments on the proposed adoption of a Negative Declaration and the approval of the Collection System Operations (CSO) Yard Relocation and Improvement Project. There being no comments, the public hearing was closed. It was moved by Member Starita and seconded by Member Dalton, that Resolution No. 92-026 be adopted, approving the Negative Declaration and the CSO Yard Relocation and Improvement Project. Motion approved on the following roll call vote: AYES: Members: Starita, Dalton, Rainey, Boneysteele NOES: Members: None ABSENT: Members: Clausen 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 7. SOLID WASTE a. CONSIDER AUTHORIZING USE OF LARGER CAPACITY DROP BOXES AND COMMERCIAL BINS BY ORINDA-MORAGA DISPOSAL SERVICE. INC. Mr. Dolan, General Manager-Chief Engineer, stated that Orinda-Moraga Disposal Service, Inc. feels they must add larger capacity drops boxes and commercial bins to be competitive and provide the services requested in their service area. District staff has reviewed the rates and determined that they appropriately reflect the charges for these additional services based on the rates now in existence. It was moved by Member Starita and seconded by Member Dalton, that Orinda-Moraga Disposal Service, Inc. be authorized to provide additional services through larger drop boxes and commercial bins at the rates set forth in Attachment I to the position paper. There being no objection, the motion was approved with Member Clausen being absent. 05 21 92 96 a. 8. ADMINISTRATIVE CONSIDER ADOPTION OF A RESOLUTION REQUESTING CONSOLIDATION OF THE ELECTION OF DISTRICT BOARD MEMBERS WITH THE STATEWIDE GENERAL ELECTION ON NOVEMBER 3. 1992. AND CONSIDER DISTRICT REGULATIONS FOR CANDIDATE STATEMENTS Following explanation by Ms. Joyce E. Murphy, Secretary of the District, and discussion of the District regulations for candidate statements, it was moved by Member Rainey and seconded by Member Starita, that candidates for the District Board of Directors pay all the costs for publication of their respective candidate statements and that 10 percent of the estimated cost be collected as a condition of filing the statement with the balance being due ten days after the election. Motion approved on the following roll call vote: AYES: Members: Rainey, Starita, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Clausen It was moved by Member Dalton and seconded by Member Starita, that each candidate's statement of qualifications be limited to 400 words or less. Motion approved on the following roll call vote: AYES: Members: Dalton, Starita, Rainey, Boneysteele NOES: Members: None ABSENT: Members: Clausen It was moved by Member Starita and seconded by Member Rainey, that Resolution No. 92-027 be adopted, requesting consolidation of the election of District Board Members with the Statewide General Election to be held on November 3, 1992. Motion approved on the following roll call vote: AYES: Members: Starita, Rainey, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Clausen 9. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH JAMES M. MONTGOMERY ENGINEERS FOR A PILOT STUDY OF ULTRAVIOLET DISINFECTION Mr. Dolan, General Manager-Chief Engineer, stated that this pilot study will verify the effectiveness of ultraviolet disinfection of the District's secondary treated wastewater as an alternative to chlorine. Following discussion of the costs of ultraviolet disinfection compared to chlorine, it was moved by Member Rainey and seconded by Member Starita, that the General Manager- Chief Engineer be authorized to execute an agreement with James M. Montgomery Engineers for $310,000 for a pilot test of ultraviolet (UV) disinfection. Motion approved on the following roll call vote: AYES: Members: Rainey, Starita, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Clausen 05 21 92 97 b. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT FOR $115.000 WITH THE WARNER GROUP FOR PROFESSIONAL SERVICES RELATED TO IMPLEMENTATION OF THE DISTRICT'S COMPUTER SYSTEMS UPGRADE PROJECT. DP 20082 Following explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Starita and seconded by Member Dalton, that the General Manager-Chief Engineer be authorized to execute an agreement for $115,000 with The Warner Group for professional services related to implementation of the District's Computer systems Upgrade Project, DP 20082. Motion approved on the following roll call vote: AYES: Members: Starita, Dalton, Rainey, Boneysteele NOES: Members: None ABSENT: Members: Clausen 10. APPROVAL OF MINUTES a. MINUTES OF MAY 17.1992 It was moved by Member Dalton and seconded by President Boneysteele, that the minutes of May 17, 1992, be approved as presented. There being no objection, the motion was approved with Member Clausen being absent. 11. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED MAY 21. 1992 a. Member Starita, member of the Budget and Finance Committee, stated that in the absence of Member Clausen, he and President Boneysteele reviewed the expenditures and found them to be satisfactory. It was moved by Member Starita and seconded by President Boneysteele, that the Expenditure List dated May 21, 1992, including Self-Insurance Check Nos. 100603- 100607, Running Expense Check Nos. 67810-68055, and Sewer Construction Check Nos. 11054-11105, be approved as recommended. There being no objection, the motion was approved with Member Clausen being absent. 12. BUDGET AND FINANCE a. RECEIVE A STAFF REPORT ON PROPOSED CHANGES TO THE CURRENT SCHEDULE OF RATES AND CHARGES. AND AUTHORIZE A NOTICE OF A PUBLIC HEARING ON JUNE 4. 1992 TO CONSIDER ADOPTING A NEW SCHEDULE OF RATES AND CHARGES Following discussion, it was moved by Member Rainey and seconded by Member Dalton, that authorization be given for notice of a public hearing to be held on June 4, 1992, to consider the proposed new schedule of rates and charges. There being no objection, the motion was approved with Member Clausen being absent. b. RECEIVE THE 1992-1993 OPERATIONS AND MAINTENANCE BUDGET AND THE SELF-INSURANCE FUND BUDGET FOR REVIEW Mr. Dolan, General Manager-Chief Engineer, stated that the proposed 1992-1 993 Operations and Maintenance (O&M) Budget and Self-Insurance Fund Budget were reviewed by the Board Committee (Members Starita and Boneysteele). Mr. Dolan provided a brief overview of the District's schedule of rates and charges. This schedule was being adjusted for the first time in three years. Based on the direction from the Board in 1989, the overhead charges on these fees were not included. However, at that time staff was instructed to carry forward this issue for consideration by the Board at the next rate setting. Staff would recommend that the policy of not including overhead expenses be continued. 0'5 2:1 '92 98 Mr. Dolan, General Manager-Chief Engineer, stated that the O&M budget to budget increase for 1992-1993 is 2 percent and, due to expenditure savings in fiscal year 1991/92, budget to actual is approximately 4 percent. Alternative Sewer Service Charge rates have been reviewed with the Budget and Finance Committee and will be presented for Board consideration. The major policy issue facing the Board in setting the Sewer Service Charge rates this year is the amount of Sewer Service Charge revenue to be contributed to the capital fund. Although the budget increase is only 2 percent, staff recommends that the Sewer Service Charge be increased as much as 10 percent. Even with a 10 percent Sewer Service Charge increase, the prudent reserve level of 10 percent will not be achieved. The District is coming out of a series of deliberately planned for deficit years initiated in 1985, to bring the prudent reserve level down to 10 percent. As that has been done, the gap between the Sewer Service Charge revenue and the Sewer Service Charge revenue needed to balance the budget has widened and the District has actually drawn reserves down below the prudent reserve level. The reason to recommend a strong rate increase is even more compelling this year because it is expected that the District may have to deal with the loss of ad valorem tax revenue, thus facing an even bigger rate increase next year. For that reason, staff would recommend that only one issue be on the table next year when considering setting the Sewer Service Charge. That is the need to make up the ad valorem tax revenue shortfall and not the issue of an operating rate increase. Mr. Dolan introduced Mr. Walter N. Funasaki, Finance Officer, who reviewed comparative annual Sewer Service Charges at nearby agencies, the District's Sewer Service Charges from 1984-1985 tt1rough 1992-1993, the Sewer Service Charge incremented by the Consumer Price Index from 1985 through the present time, and O&M revenues, expenses and reserves based on Sewer Service Charge alternatives of $166, $165, $164 and $163. Mr. Funasaki stated that staff proposes that the Board consider a Sewer Service Charge of $166 for a 9.9 percent increase. Even at that, the level of reserves would be below the prudent reserve level of 10 percent of expenses. Mr. Funasaki reviewed the proposed transfer from the O&M Fund to the Sewer Construction Fund in the amount of $609,000. The transfer would supplement the reserves of the Capital Fund in the amount of $137,000 in anticipation of major capital outlays in the Capital Improvement Program and the need for debt financing, and in the amount of $472,000 for the capital replacement allowance broached in the Capital Improvement Program. By establishing a commitment of Sewer Service Charge revenue as a revenue source for the Capital Improvement Budget, the District hopes to strengthen its position in the bond market. The equipment depreciation allowance is based on the annual depreciation expense on the District's furniture and equipment. Mr. Dolan stated that the transfers from the O&M Fund to the Capital Fund would be a change in policy. Mr. Dolan requested Board input on the proposed transfers. Member Starita stated that he reviewed this material in the Budget and Finance Committee meeting and came away from that meeting feeling that he would recommend a 9.9 percent rate increase because the District will be entering the bond market and the transfer to the Capital Fund makes the District a more desirable candidate for debt financing. Member Starita stated further that the District should achieve a prudent reserve level of 10 percent, particularly in light of the fact that the Sewer Service Charge has not kept up with inflation. Finally, Member Starita stated that it will be more difficult to deal with the ad valorem tax issue, which will result in a fairly substantial increase in rates, if these other issues have not been addressed. For those reasons, Member Starita recommended a 9.9 percent increase in the Sewer Service Charge. Member Rainey stated that it would be difficult to charge the ratepayers money before it is actually needed in anticipation of the loss of ad valorem tax revenue. However, those issues must be considered since it is likely a bill taking ad valorem tax revenue from special districts will pass. Member Dalton stated that the District should remain a pay-as-you-go organization with a reasonable reserve. The District has a right to be proud of the efforts made in that regard. President Boneysteele stated that he is very uncomfortable recommending a 9.9 percent rate increase in these difficult times. President Boneysteele reminded the Board that last 05 '., 2'1 92 99 year staff recommended a $154 Sewer Service Charge because there was a deficit. The Board set the Sewer Service charge at $151. If the growing depletion of reserves is not addressed this year, it will only be worse next year. President Boneysteele stated that he sees no alternative but to recommend a 9.9 percent rate increase. Mr. Dolan thanked the Board for their input. It was moved by Member Starita and seconded by Member Rainey, that the 1 992-1 993 O&M Budget and Self-Insurance Fund Budget be received for review. There being no objection, the motion was approved with Member Clausen being absent. c. RECEIVE APRIL 1992 FINANCIAL STATEMENTS Mr. Walter N. Funasaki, Finance Officer, reviewed the results of operations and maintenance expenses for the month of April 1992, noting that actual O&M expenses were $117,000 less than budget, representing a 5.5 percent favorable variance. For the ten months ended April 30, 1992, actual O&M expenses were $1,123,000 less than budget, representing a 5.1 percent favorable variance. Mr. Funasaki reported that the District's temporary investments were held in Treasury bills and Treasury notes, repurchase agreements, commercial paper, and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 3.9 percent to 8.401 percent. The latest interest rate as of April 30, 1992 was 5.271 percent. The average yield for the LAIF account through April 30, 1992 was 5.692 percent. President Boneysteele stated that the make up of the District's investments was discussed briefly at the recent Budget and Finance Committee meeting. Staff was asked to investigate extending the maturity of District investments, timing maturities to match capital project needs. Mr. Dolan stated that staff supported this concept and will report back to the Board with a plan. 13. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 14. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, reported that at the last Board meeting, the Board was advised of Mr. Funasaki's testimony at the recent Board of Supervisors hearing on rates for Keller Canyon Landfill. At the time the District Board set solid waste collection rates for 1992, a provision was included to permit the franchised collectors to apply for a mid-year rate adjustment if and when the Keller Canyon Landfill rates were set. The Board of Supervisors has established interim rates. While these interim rates have been set for 90 days, rates could go up at the end of that 90-day period. The collectors have not yet asked for a rate adjustment. On a related matter, Mr. Dolan reported that the audited financial statements for Orinda-Moraga Disposal Service, Inc. have not yet been received. The Board directed staff to advise Orinda-Moraga Disposal that audited financial statements will be required prior to consideration of any rate adjustment. Mr. Paul Morsen, Deputy General Manager, reported on an emergency solid waste item added to the Board of Supervisors agenda on May 19, 1992. Acme transfer station has a put or pay contract with Potrero Landfill in Solano County. With the opening of Keller Canyon Landfill, the Board of Supervisors decided to send the minimum amount of solid waste to Potrero Landfill with the balance going to Keller Canyon Landfill so the cost to the ratepayers will be even higher. In response to a question from Member Rainey, Mr. Kenton L. Aim, Counsel for the District, stated that the County is trying to preserve some of the yearly maximum amount at Potrero Landfill 05;' 21' 92 100 b. 05 21 because they have both a daily and a yearly maximum and minimum amount. 2) Mr. Dolan, General Manager-Chief Engineer, stated that the ad valorem tax issue was discussed to a degree earlier in the agenda. Mr. Dolan introduced Mr. Robert A. Baker, Deputy Chief Engineer, who reported that Mr. Michael Dillon, Executive Director and Legislative Advocate for the California Association of Sanitation Agencies (CASA) advises that it is likely that the shift of ad valorem tax revenue will occur. Mr. Dillon advised that special districts should keep pressure on, particularly on their local representatives. To that end, a meeting was scheduled with Assemblyman Robert J. Campbell who sits on a strategic education committee. Representatives of other public agencies and local industries were invited to the meeting scheduled on May 22, 1 992. 3) Mr. Dolan reported that the bids for the Headworks Project were opened on May 23, 1991. At that time, the low bid was $27.8 million, significantly higher than the engineer's estimate. On August 1, 1991, the Board rejected all bids and authorized redesign. A lot of creative hard work went into the redesign, and the project has been rebid. The new bids have been opened and the bid review is now being conducted. The bids are very close. The low bid of $18.3 million was submitted by Humphrey Construction, Inc. from the State of Washington. Mr. Dolan discussed issues that could arise based on occurrences at other public agencies. 4) Mr. Dolan announced that Messrs. Jay S. McCoy, Tad Pilecki, and John A. Larson are in Houston, Texas, looking at tunnelling technology that might be applicable to the Pleasant Hill Interceptor Project. The inspection trip was funded through the capital project. 5) Mr. Dolan announced that the District is currently advertising for bids for the M-4 Parallel Force Main Project. The engineer's estimate is $1.8 million. The District is also advertising for the Clyde, Fairview, Maltby Pumping Stations Improvement Project. The engineer's estimate for that project is $2.3 million. 6) Mr. Dolan announced that the District will soon be back to using styrofoam cups rather than plastic coated paper cups. Styrofoam cups cost less and use less resources and energy to produce than plastic coated paper cups. 7) Mr. Dolan announced that last week he participated in a Water Environment Federation (WEF) meeting in Washington, D.C. which dealt with the question of Federal programs to achieve zero pollutant discharge. It was very valuable to learn how environmental activist organizations and the regulators see the next round of regulations being developed and applied. Mr. Dolan reported that he also had an opportunity to meet with Mr. Michael Cook, Head of the Environmental Protection Agency's Office of Water Enforcement and Compliance, to discuss their Five-Year Plan. Mr. Dolan stated that he provided specific comments on the Plan which included input from the WEF Government Affairs Committee and comments based on Central San's experience. In addition, Mr. Dolan reported that he met with Ms. Lajuana Wilcher, Deputy Administrator - Office of Water. The meeting covered a wide range of issues important to the District, including promulgation of new sludge disposal regul~tions. COUNSEL FOR THE DISTRICT None 92 101 c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1 ) Member Rainey reported that a committee of the Contra Costa Solid Waste Authority met to discuss goals and policies. 2) Member Rainey reported that the Fiscal Unity Committee met. The Committee is drafting a document covering issues that all agencies can agree on. When drafted, the document will be brought to the Board for consideration. After consideration by the public agencies involved, the doucment will be forwarded to the Governor. 3) President Boneysteele reported on the recent California Association of Sanitation Agencies (CASA) meeting held at the Claremont Hotel in Oakland. Topics of discussion included the ad valorem tax issue, proposed changes to the Brown Act, a presentation on the San Diego water reclamation plant, and CASA long range planning and reorganization. 15. ANNOUNCEMENTS Member Rainey announced that a question has come up concerning the Morehouse property use and possible regulations that would limit the number of people or that would require additional sanitary facilities. Mr. Dolan indicated that staff would look into the matter. 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 6:00 p.m. President of the Board of Directors, Central Contra Costa Sanitary Distri , County of Contra Costa, State of California COUNTERSIGNED: i ' SE1cr tat of the Central Con, , a Co a Sanitary District, County of Contra Costa, State of California ,05 21 92