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HomeMy WebLinkAboutBOARD MINUTES 07-16-92 135 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JULY 16, 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 p.m. on July 16, 1992. President Boneysteele called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Clausen, Dalton, Starita, Rainey, Boneysteele ABSENT: Members: None 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Rainey and seconded by Member Dalton, that the Consent Calendar, consisting of Items a. through g., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 92-042 was adopted, confirming that publication has been made of District Ordinance No. 180, adopting Schedule of O&M Rates and Charges. Motion unanimously approved on the following vote: AYES: Members: Rainey, Dalton, Clausen, Starita, Boneysteele NOES: Members: None ABSENT: Members: None b. Resolution No. 92-043 was adopted, confirming that publication has been made of District Ordinance No. 181, establishing Sewer Service Charges to be billed for 1992-1993. Motion unanimously approved on the following vote: AYES: Members: Rainey, Dalton, Clausen, Starita, Boneysteele NOES: Members: None ABSENT: Members: None c. Resolution No. 92-044 was adopted, confirming that publication has been made of DiStrict Ordinance No. 182, revising the Schedule of Facilities Capacity Fees. o~ 16 92 ---.---- ------- 136 Motion unanimously approved on the following vote: AYES: Members: Rainey, Dalton, Clausen, Starita, Boneysteele NOES: Members: None ABSENT: Members: None d. Resolution No. 92-045 accepting work and Offers of Dedication from Joseph Panetta, et ux, Job 4878, Parcell, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Rainey. Dalton, Clausen, Starita, Boneysteele NOES: Members: None ABSENT: Members: None e. The Agreement relating to Real Property with Robert T. Reimer, et ux, Job 3651, was approved, the President of the Board of Directors and the Secretary of the District were authorized to execute and record said agreement, and Resolution No. 92-046 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: Rainey, Dalton, Clausen, Starita, Boneysteele NOES: Members: None ABSENT: Members: None f. Authorization was given for P.A. 92-5 (Danville area) to be included in a future formal annexation to the District. Motion unanimously approved on the following vote: AYES: Members: Rainey, Dalton, Clausen, Starita, Boneysteele NOES: Members: None ABSENT: Members: None g. August 6, 1992, at 3 p.m. was established as the date and time for a public hearing on Annexation 1 20 as amended by the Local Agency Formation Commission (LAFCO). Motion unanimously approved on the following vote: AYES: Members: Rainey, Dalton, Clausen, Starita, Boneysteele NOES: Members: None ABSENT: Members: None (,. ; 07 16 92 137 4. HEARINGS a. CONDUCT A PUBLIC HEARING ON THE REVISED SOURCE CONTROL ORDINANCE Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that the District's Source Control Ordinance sets forth the rules for what can and cannot go into the sanitary sewer system. The proposed revisions reflect minor technical corrections and incorporate comments from the Regional Water Quality Control Board. At 3:03 p.m., President Boneysteele opened the public hearing to receive public comment regarding the proposed changes to the District's Source Control Ordinance which were drafted to respond to review comments by the Regional Water Quality Control Board (RWQCB) . Mr. Bart Brandenburg, Source Control Superintendent, stated that at the time the public hearing was set, the proposed changes to the Source Control Ordinance were reviewed in detail. Since that time, approval of all those proposed changes has been received from the RWQCB. Staff does not plan a presentation at this time, but is available to answer any Questions. Discussion followed concerning the notification and information given to local business and industries, and the change from a contract to a permit as the controlling document. It was noted for the record that no written correspondence was received with regard to the proposed changes to the Source Control Ordinance. There being no comments, President Boneysteele closed the public hearing at the hour of 3: 10 p.m. and returned the matter to the Board for deliberation. Member Rainey expressed concern about the impact of additional fees on small businesses and industries and requested that staff continue to work with the businesses and industries as in the past. Discussion followed concerning the cost and necessity for compliance with RWQCB and Environmental Protection Agency (EPA) requirements. Mr. Brandenburg provided an overview of the enforcement process, noting that approximately 80 Notices of Violation have been issued but in only two instances have fines been levied. Staff does work with the businesses and industries to assist them in their efforts in complying with the requirements. Further, Mr. Brandenburg reported that District staff is working with the Bay Area Air Quality Management District (BAAQMD) to combine their air quality inspection with the sanitary sewer inspection as a cost-saving measure. It was moved by Member Starita and seconded by Member Dalton, that Ordinance No. ~ be adopted, approving the proposed revisions to the District's Source Control Ordinance. Motion unanimously approved on the following roll call vote: AYES: Members: Starita, Dalton, Clausen, Rainey, Boneysteele NOES: Members: None ABSENT: Members: None b. CONDUCT A PUBLIC HEARING TO CONSIDER A MID-YEAR ADJUSTMENT TO THE REFUSE COLLECTION RATES OF VALLEY WASTE MANAGEMENT AND ORINDA-MORAGA DISPOSAL SERVICE. INC. BASED ON AN INCREASE IN THE ACME TRANSFER STATION FEE FROM $65.69 TO $77.07 PER TON Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Walter N. Funasaki, Finance Officer, who stated that an interim transfer station fee of $50.22 per ton was set by the Board of Supervisors when transfer station operations began on December 19, 1989. That fee was increased by 14 percent to $59.58 per ton a year later on January 1, 1991, and again by 10 percent to $65.69 per ton effective December 9, 1991. Mr. Funasaki 07 '1:6 :,92 138 stated that the Board of Supervisors set an interim landfill fee for Keller Canyon Landfill to allow for its opening in early May 1992, with a final fee to be set within 90 days. The transfer station fee was increased by the Board of Supervisors by 17 percent to $77.07 per ton effective May 18, 1992. The increased transfer station fee was derived by replacing the landfill disposal fee with the new Keller Canyon Landfill fee and adding mitigation components. This fee was imposed without a review of the impacts of the operational changes occurring at the Acme Interim Transfer Station. Mr. Funasaki reviewed the components of the Keller Canyon disposal fee including the Contra Costa County surcharge, community mitigation fee, transportation impact fee, and open space fee. Deloitte and Touche is currently reviewing the Keller Canyon Landfill fees. The issues currently in dispute between Deloitte and Touche and the Keller Canyon Landfill company are costs for site acquisition, initial site development, site operation and maintenance, and variable royalty (site acquisition). The County plans to do the final review of the Acme Interim Transfer Station and Keller Canyon Landfill fees in August 1992. Mr. Funasaki stated that in May 1992, staff requested information from both Valley Waste Management and Orinda-Moraga Disposal Service, Inc. to determine the impact of the increase. Both collectors provided updated tonnage information and computed the impact of the disposal fee increase which District staff has reviewed and confirmed. Mr. Funasaki reviewed the Valley Waste Management increased disposal expense of $547,000. A 7.56 percent increase would be required effective July 1, 1992, to obtain the revenue required over a six-month period. Mr. Funasaki reviewed the change in the residential can rates based on this increase. Discussion followed concerning the rate of return allowed by the County at the Acme Interim Transfer Station and Keller Canyon Landfill and the inclusion of a risk factor in that calculation. At this time, President Boneysteele directed the Board's attention to Item 9.c., the Public Managers' Association recommendations to the Board of Supervisors regarding the Keller Canyon Landfill rates. The issues just raised by the Board were Questioned as well in the letter from the Public Managers' Association. Since the Board of Supervisors will not set the final rates until August 1992, presumably there is an opportunity for the County to accept and consider input during that process. In response to a Question from President Boneysteele, Mr. Kenton L. Aim, Counsel for the District, stated that a formal request for information regarding the Keller Canyon and Acme Interim Transfer Station rate-setting was not made but Mr. Gary Brayton, of Deloitte and Touche, stated that any information could be reviewed and checked by a Qualified financial person. Discussion followed concerning the possibility of hauling to a landfill other than Keller Canyon, either directly or using the" POD" automated transfer system, and the portion of the Keller Canyon Landfill rates being set aside for closure. Mr. Funasaki reviewed the impact of the Acme Interim Transfer Station fee increase and the impact on disposal expense for Orinda-Moraga Disposal Service, Inc. A 6.92 percent increase would be required effective July 1, 1992, to achieve the $193,000 increase in revenue needed to offset the increased disposal expense. Mr. Funasaki reviewed the impact on residential can rates of this increase, noting that the position paper contained a slight error in computation of the residential can rates for Orinda. The overheads distributed to the Board contain the corrected figures. At 4:05 p.m., President Boneysteele opened the public hearing to receive public comments regarding adjustments to refuse collection rates of Valley Waste Management and Orinda-Moraga Disposal Service, Inc. effective July 1, 1992 due to an increase in the Acme Interim Transfer Station fee. It was noted for the record, that no written correspondence had been received. Mr. Ron Proto, General Manager of Valley Waste Management, addressed the Board. Mr. Proto stated that during the recent road closure because of the Rhone Poulenc fire, Valley Waste Management requested permission from the Office of Emergency Services to haul 07 16 92 139 direct to Keller Canyon Landfill. That request was denied. Mr. Proto requested that the Board of Directors approve the 7.56 percent rate increase set forth in the position paper. Discussion followed concerning the legality of the various components of the Keller Canyon Landfill disposal fee and the Acme Interim Transfer Station fee and possible refusal to pass through all or a portion of the fees. There being no further comments, President Boneysteele closed the public hearing at the hour of 4:13 p.m. Member Starita stated that he could not vote to pass through the full fee increase since he believes that certain components of the fee are illegal charges. Member Starita stated that he is aware this would put the collectors in a difficult position and suggested alternatively that consideration of the fee increase be deferred until further information is available from the County justifying these charges. Discussion followed concerning the components of the fee increase, adoption of an interim rate, payment of that interim rate under protest by the collectors, and development of alternative disposal sites. Mr. Proto stated that Valley Waste Management just ordered $3.5 million in equipment for the automated collection program. This equipment is not designed for the "POD" waste management system. It would be very difficult for Valley Waste Management to change collection systems at this point. Mr. Proto urged the Board to pass through the Acme Interim Transfer Station rate, stating that Valley Waste Management cannot continue to be the banker for its customers. If Valley does not pay the Acme Interim Transfer Station fee, the trucks will not be allowed to use the facility. Mr. Proto stated that Valley will try do whatever the Board directs and continue to provide service to its customers. Mr. Proto stated that Valley has already made two payments at the rate implemented in May 1992, and requested that the Board pass through the Acme Interim Transfer Station rates. Mr. John Matheny, of Orinda-Moraga Disposal Service, Inc., stated that Orinda-Moraga Disposal is a small company with limited resources. Orinda-Moraga Disposal wants to work within the system and try to help the District with the County; but if the Board fails to pass through the Acme Interim Transfer Station fees, Orinda-Moraga Disposal will be in a very difficult situation. Following discussion, it was moved by Member Rainey and seconded by Member Dalton, that the Board of Directors makes the following findings: 1 ) That the financial recommendations supporting the interim rate set by the Board of Supervisors are inadequate in that there is a lack of documentation to provide the District an opportunity to analyze Keller Canyon and Acme Interim Transfer Station rates (disposal charges); and furthermore, there is a serious question as to the legality and adequacy of the backup and supporting documentation for fees being levied by the County; therefore, to the extent that any of these monies are going to fees to which the District's objects, the fees are being passed through under protest. 2) That the rate adjustment to be made by the Board of Directors is an interim rate and in no way should be considered as approval or ratification of the interim rates set by the Board of Supervisors. To avoid adverse financial impact on the refuse collectors franchised by the District, interim rates in accordance with the refuse collection rate schedules presented by District staff were set for 180 days effective July 1, 1992 (Resolution Nos. 92-047 and 92-048); the collectors were instructed to send letters to Acme with copies to Contra Costa County indicating that the rates are being paid under protest; the collectors were directed to seek alternative disposal options, communicating same to the District with their rate applications in September 1992; and District staff was directed to request the necessary documentation to be brought back to the Board of Directors for their use in making a final determination on the final Acme Interim Transfer Station rates. Motion approved on the following roll call vote: 07 16 92 140 AYES: Members: Rainey, Dalton, Clausen, Boneysteele NOES: Members: Starita ABSENT: Members: None At 5:00 p.m., President Boneysteele declared a recess, reconvening at the hour of 5:07 p.m., with all parties present as previously designated. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 6. BIDS AND AWARDS AUTHORIZE AWARD OF CONTRACT TO CAL-NEVA ENVIRONMENTAL SYSTEMS INCORPORATED FOR THE LABORATORY FACILITIES EXPANSION. DP 10077 a. Mr. Dolan, General Manager-Chief Engineer, stated that this project was at one time included in a larger project. Because of a safety issue, modifications to the laboratory hoods should be addressed at this time. Staff would recommend award of the contract to the low bidder, Cal-Neva Environmental Systems Incorporated. Mr. Dolan introduced Assistant Engineer Paul Sciuto and Senior Engineer Jim Belcher who are working on this project. It was moved by Member Starita and seconded by Member Clausen, that award of contract be authorized to Cal-Neva Environmental Systems Incorporated, the lowest responsible bidder, for $20,400 for the Laboratory Facilities Improvement Project, DP 10077. There being no objection, the motion was unanimously approved. b. CONSIDER THE RESPONSIVENESS OF THE ALLIED CRANE. INCORPORATED. BID TO INSTALL THE SOLIDS CONDITIONING BUILDING CRANE. DP 10083. AND CONSIDER AWARD TO THE LOWEST RESPONSIVE BIDDER Mr. Dolan, General Manager-Chief Engineer, introduced Mr. James L. Belcher, Senior Engineer, who described the project to install a 15-ton crane on the north side of the Solids Conditioning Building. Ten sets of plans were given out and three bids were received. During the staff evaluation of the Allied Crane bid, the apparent low bid, significant irregularities were identified including lack of the specified contractor license and additions to the Schedule of Bid which substantially changed the specifications. Mr. Belcher reviewed the alternatives available to the Board, and presented the staff recommendation that the bid of Allied Crane be declared non-responsive and the contract be awarded to Rigging International as the lowest responsive and responsible bidder. At 5: 15 p.m., President Boneysteele opened the hearing to consider the responsiveness of the bid of Allied Crane, Incorporated to install the Solids Conditioning Building crane. Mr. Dave Costa, Vice President of Allied Crane, Incorporated, addressed the Board referencing the July 14, 1992 letter from Allied Crane. Mr. Costa stated that an "A" (General Engineering Contractor) or liB" (General Building Contractor) license classification was specified in the bid documents, but Mr. Costa stated that is not required by the State of California. The project involves a limited scope of work that can be done by a contractor with a "C-61 II (Limited Specialty) license. With regard to the addition to the Schedule of Bid, Mr. Costa stated that it appeared that a ramp was underdesigned for its required use. Mr. Costa stated that he now understands that the ramp has been structurally analyzed and found to be able to support the loads in Question and Allied 07 16 92~ 141 Crane no longer has a concern in that regard. Mr. Costa requested that the Board authorize award of the contract to Allied Crane. Mr. Ernest Dankas, representing Rigging International, stated that he is with the Walter Dankas Company. Walter Dankas has a "C-61" license and is acting as a subcontractor to Rigging International. Mr. Dankas stated that he would have bid as the primary contractor but did not have the specified license. Mr. Kenton L. Aim, Counsel for the District, stated that from a legal standpoint, there is a statutory provision that requires public agencies to list a type or variety of contractor license that is acceptable on a job. If a contractor does not have one of those licenses specified, the bid is non-responsive. The second issue, is that Allied Crane put certain limitations or qualifications on the Bid Schedule which they have now asked to be removed. Another matter of law requires that the bid be considered as submitted. Except in very limited circumstances, the bid cannot be altered after it is submitted. That is to provide an even playing field to all bidders. There being no further comments, President Boneysteele closed the hearing at the hour of 5:34 p.m. Following discussion, it was moved by Member Starita and seconded by Member Dalton, that the bid of Allied Crane, Incorporated be declared non-responsive and award of the construction contract to install the Solids Conditioning Building Crane, DP 10083, be authorized to Rigging International as the lowest responsive and responsible bidder. Motion unanimously approved on the following roll call vote: AYES: Members: Starita, Dalton, Clausen, Rainey, Boneysteele NOES: Members: None ABSENT: Members: None Member Clausen left the meeting at the hour of 5:41 p.m. a. 7. ENGINEERING AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH G. S. DODSON AND ASSOCIATES. INC. FOR DESIGN OF THE SECONDARY CLARIFIER IMPROVEMENTS PROJECT. DP 20089 It was moved by Member Rainey and seconded by Member Dalton, that the General Manager-Chief Engineer be authorized to execute a Cost Reimbursement Agreement with a cost ceiling of $498,000 with G. S. Dodson and Associates, Inc. for design of the Secondary Clarifier Improvements Project, DP 20089. There being no objection, the motion was approved with Member Clausen being absent. Member Clausen returned to the meeting at the hour of 5:44 p.m. 8. LEGAl/LITIGATION a. DENY CLAIM FROM VALLEY DISPOSAL SERVICE. INC. AND FRANCISE FIORENTINO CONCERNING THE ACME LANDFILL LAWSUIT CROSS-CLAIMS Following explanation by Mr. Kenton L. Aim, Counsel for the District, it was moved by Member Clausen and seconded by Member Starita, that the claim by Valley Disposal Service, Inc. and Francise Fiorentino associated with the Acme Landfill lawsuit be denied and referred to District Counsel for further action as needed. There being no objection, the motion was unanimously approved. 07 16 92 142 9. CORRESPONDENCE NOTE RECEIPT OF JUNE 28. 1992 LETTER FROM MR. JOHN A. NEJEDL Y CONCERNING THE PROPOSED TRI- VALLEY WASTEWATER AUTHORITY PROJECT a. b. NOTE RECEIPT OF JULY 8. 1992 LETTER FROM MR. JOHN A. NEJEDL Y CONCERNING THE PROPOSED TRI- VALLEY WASTEWATER AUTHORITY PROJECT Receipt of the letters from Mr. John A. Nejedly concerning the proposed Tri-Valley Wastewater Authority (TWA) project was noted. Mr. Robert A. Baker, Deputy Chief Engineer, distributed a fact sheet on the proposed TWA project for the Board's information. c. This item was taken out of order earlier in the agenda in conjunction with Item 4.b., the public hearing to consider a mid-year adjustment in refuse collection rates. 10. APPROVAL OF MINUTES CONSIDER AMENDMENT TO MINUTES OF JUNE 18. 1992 a. Following discussion, it was moved by Member Starita and seconded by Member Clausen, that the amendment to the June 18, 1992 minutes proposed by Mr. John A. Nejedly be approved. There being no objection, the motion was unanimously approved. b. MINUTES OF JULY 2. 1992 It was moved by Member Clausen and seconded by President Boneysteele, that the minutes of July 2, 1 992, be approved with the following amendment on page 3: the name "Chet Heyer" was changed to read "Chetan Singh Heyer." There being no objection, the motion was unanimously approved. 11. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED JULY 16. 1992 Member Dalton, member of the Budget and Finance Committee, stated that he and Member Starita reviewed the expenditures and found them to be satisfactory. It was moved by Member Dalton and seconded by Member Starita, that the Expenditure List dated July 16, 1992, including Self-Insurance Fund Check Nos. 100616-100617, Running Expense Fund Check Nos. 68966-69266, and Sewer Construction Fund Check Nos. 11270-11307, be approved as recommended. There being no objection, the motion was unanimously approved. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 13. REPORTS GENERAL MANAGER-CHIEF ENGINEER a. 1 ) Mr. Dolan, General Manager-Chief Engineer, stated that there is still no State budget, and no firm commitment one way or the other on the plan to take special districts' taxing authority. Following discussion, it was moved by Member Clausen and seconded by Member Rainey, that the Special Board Meeting scheduled for 9 a.m. on Monday, July 20, 1992, to consider adjusting the Sewer Service Charge to recover the loss of ad valorem tax 07 16 92 b. 143 revenue, be cancelled. unanimously approved. There being no objection, the motion was 2) Mr. Dolan introduced Mr. Tad Pilecki, Senior Engineer, who described alternative routes for the Pleasant Hill Interceptor. Mr. Pilecki stated that staff is proceeding with negotiations for right-of-way acquisition for the preferred alignments. 3) Mr. Dolan announced that the District has been informally requested to accept alum sludge again from Contra Costa Water District. 4) Mr. Dolan briefly updated the Board with regard to Central Contra Costa Solid Waste Authority negotiations to purchase the Acme Interim Transfer Station. Mr. Dolan announced that the July 23, 1992 Central Contra Costa Solid Waste Authority meeting has been cancelled. The next regular Authority meeting is August 27, 1992. 5) Mr. Dolan announced that the District will soon be advertising for the Filter Plant Rehabilitation Project. The engineer's final estimate for the project is $1,040,000. Because of the favorable bidding climate, a 20 percent discount factor has been applied to the engineer's initial estimate. COUNSEL FOR THE DISTRICT Mr. Kenton L. Aim, Counsel for the District, announced that pursuant to direction given by the Board of Directors, agreement has been reached between the District and Pleasant Hill Redevelopment. The legal necessity to remove the District from the lawsuit will be handled by the attorney for Pleasant Hill Redevelopment and is going forward at this time. c. None d. None SECRETARY OF THE DISTRICT BOARD MEMBERS 14. ANNOUNCEMENTS President Boneysteele stated that he had previously announced that he would be unable to attend the September 3, 1992 Board meeting, but has now determined that he will be present at that meeting. a. 15. CLOSED SESSION EXISTING LITIGATION The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The titles of the litigation discussed were: a. Acme Landfill Corporation v. Althin CD Medical, Inc. et al No. C91-4268 b. Maples v. Central Contra Costa Sanitary District No. C91-0852 At 6:21 p.m., President Boneysteele declared the closed session to discuss existing litigation pursuant to Government Code Section 54956.9(a). At 6:47 p.m., President Boneysteele concluded the closed session and reconvened the meeting into open session. 0-7 16 92 144 16. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION Mr. Kenton L. Aim, Counsel for the District, announced that the Appellate Court has ruled in the District's favor and granted a Court Order for attorney fees in the amount of $90,000 in the J. Lewis & Son matter. 17. ADJOURNMENT There being no further action to come before the Board, President Boneysteele adjourned the meeting at the hour of 6:58 p.m. L~-- President of the Board of Directors Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 07 16 92