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HomeMy WebLinkAboutBOARD MINUTES 10-01-92 178 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON OCTOBER 1, 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 October 1, 1992. President Boneysteele called the meeting to order and requested that Mr. Paul Morsen, the Secretary Pro Tem, call roll. 1. ROLL CALL PRESENT: Members: Clausen, Dalton, Rainey, Starita, Boneysteele ABSENT: Members: None 2. PUBLIC COMMENTS Mr. Roger J. Dolan, General Manager-Chief Engineer, presented each Board Member with a memento and thanked them for their support during the last three years while he served as an officer and President of the Water Environment Federation. Mr. Dolan completed his term as President of the Federation last week. President Boneysteele extended his thanks and congratulations on behalf of the Board to Mr. Dolan on his successful term as an officer of the Water Environment Federation. 3. CONSENT CALENDAR It was moved by Member Starita and seconded by Member Rainey, that the Consent Calendar, consisting of Items a. through c., be approved as recommended. a. Authorization for P.A. 92-8 (Alamo area) to be included in a future formal annexation to the District. Motion unanimously approved on the following roll call vote: AYES: Members: Starita, Rainey, Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: None b. The attendance of Mr. Robert A. Baker, Deputy Chief Engineer, was authorized at the October 13-14, 1992 seminar "How to Apply Deming's Quality Improvement Principles to Public Sector and Administrative Operations" at a cost of $865. Motion unanimously approved on the following roll call vote: AYES: Members: Starita, Rainey, Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: None c. The Board was notified of the Management Support/Confidential Group officers for 1 992-1993. This item was for the Board's information only. No action was taken. 10 01 92 179 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 5. BIDS AND AWARDS a. AUTHORIZE AWARD OF CONSTRUCTION CONTRACT FOR THE STANDBY POWER FACILITY PROJECT. DP 20121. TO ALBAY CONSTRUCTION COMPANY; AUTHORIZE CONSULTANT AGREEMENTS Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that the purpose of this project is to provide on-site standby electrical power to the treatment plant during a PG&E outage. He noted that bidding climate is especially favorable now as is apparent from the tight cluster of bids. Staff recommends award of the contract to the low bidder, Albay Construction Company. Staff also recommends an agreement with CH2M Hill California, Inc. for construction management services and an agreement with JCE for engineering services during construction. Following discussion regarding the use of diesel powered engines, it was moved by Member Clausen and seconded by Member Starita that award of contract be authorized to Albay Construction Company as the lowest responsible bidder in the amount of $2,199,000 for the construction of the Standby Facility Project (DP 20121); approve agreement with CH2M Hill California Inc. for construction management services with a cost ceiling of $165,000; and approve agreement with JCE for engineering services during construction with a cost ceiling of $195,100. Motion unanimously approved on the following roll call vote: AYES: NOES: Members: Clausen, Starita, Dalton, Rainey, Boneysteele Members: None ABSENT: Members: None 6. SOLID WASTE a. CONSIDER ISSUES PRESENTED BY VALLEY WASTE MANAGEMENT REt,ATEQ TO THE FULL-SCALE IMPLEMENTATION OF THE AUTOMATED CURBSIDE GARBAGE COLLECTION SYSTEM Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that at the September 16, 1992 Board Meeting, Ms. Harriette Heibel, Recycling Manager of Valley Waste Management, reported on the implementation of the automated collection system in its entire service area, with the exception of the City of Lafayette. At that meeting, the Board asked staff to summarize the four issues upon which Ms. Heibel requested direction. Mr. Dolan addressed the issue of delayed implementation of automated collection system stating that full scale implementation of the automated curbside collection system beyond the 7,350 pilot program customers in Danville was originally scheduled for September 1992. Because of a delay in delivery of the 32-gallon wheeled refuse containers, implementation will begin instead in October 1992. Implementation will occur on a phased basis over a six-week period, with notification to customers ten days prior to delivery of their refuse containers. It was the consensus of the Board that the delayed implementation schedule is based on reasonable cause and should be considered to be acceptable. As planned, a $1.85 per month per household rate decrement will be provided to customers as the automated service is provided. Mr. Dolan addressed the issue of "hard-to-serve" customers stating that customers who reside in the hilly areas of Danville and Lafayette and require service by a special collection vehicle are supposed to be charged a higher hilly service collection rate. Unfortunately, most of the 800 Danville and 1,050 Lafayette customers currently being serviced by a special vehicle are not being charged the hilly rate. A route audit revealed 10 01 92 180 that of the 800 Danville customers, 570 must continue to be serviced by the special vehicle and are unable to participate in the automated collection program; the balance of 230 Danville customers can be serviced by the automated collection vehicle, and it is proposed that they be provided the option of continuing to be serviced by the special vehicle or to receive automated service at a lower collection rate. It was the consensus of the Board to incorporate the correction to the affected customers' collection rates, and to effect the change to automated service for those electing such service, with a January 1, 1993 effective date for the general rate adjustment for those whose rates will be increased. This would avoid rapid and successive increases in collection rates for affected customers. The Board requested a letter to be drafted by the refuse collector for issuance in November 1992 to foreadvise the affected customers; the draft letter is to be submitted for review to District staff. Mr. Dolan addressed the issue of the capacity limitation at Waste Fibre Recovery stating that Waste Fibre Recovery (WFR) currently processes the separately-collected green waste from the 7,350 residential customers in the original pilot program at a cost of $9.90 per ton. The contract between WFR and Waste Management requires that green waste comprise no more than 25 percent of the total wood waste delivered to WFR. Recently, WFR notified Valley Waste Management that it will not accept additional green wastes over current levels because of less than anticipated wood waste volumes being received for processing. While Valley Waste Management is attempting to increase deliveries of wood waste to WFR, the volume increase will probably not be sufficient to guarantee acceptance of the increased green waste from the full-scale automated collection program. The lower green waste disposal cost was a major component of the economic benefit of the automated collection program and will, therefore, probably not be realized. Subsequent to the September 16, 1992 Board Meeting, Valley Waste Management negotiated a $55 per ton charge for green waste to be delivered to the demonstration compost project at the Acme Landfill site. The current Acme Transfer Station fee for solid waste is $77.07 per ton. Discussion followed concerning the disposal of green waste. Barriers for transporting solid waste between county lines have been eliminated so there should be more options open now. Member Clausen expressed strong concern that Valley Waste Management must continue to explore other green waste disposal alternatives and that we may be moving too fast on separate pick-up of green waste if there is not an economically advantageous disposal site. Member Boneysteele stated that because Valley Waste Management has a monopoly on solid waste disposal in this franchise area it is their duty under the franchise agreement to strive to find the lowest cost disposal for green waste. Member Clausen voiced his concern about whether a portion of the $55 green waste disposal charge is being put toward closure of the Acme Landfill. He moreover inquired as to what amount the County may be taking as mitigation fees. It was the consensus of the Board that Valley Waste Management should continue separate collection of green waste and deliver the maximum volumes possible to WFR, with the balance being deposited at an alternative location at the lowest possible cost. When District staff present their rate analysis to the Board, Valley Waste Management is to include proposed alternate destinations for the collected green waste calculating the costs for each. Mr. Dolan addressed the issue of schedule change for seasonal clean-up collection stating that the refuse collector currently performs the three seasonal clean-up collections on Saturdays, with each community being serviced over two or three Saturdays. With the conversion to automated collection vehicles, a large number of the rear-end loader trucks would have to be retained for use only during the seasonal clean-ups. If the clean-up collection were to be provided to customers three times per year on the same day as refuse collection, the number of rear-end loader trucks required would be significantly reduced, and payment of overtime wages would be avoided. It was the consensus of the Board that the change requested in the seasonal clean-up schedule be approved as it will remove underused vehicles from the fleet and reduce operating expenses. The revised seasonal clean-up schedule will be implemented effective the 1993 calendar year. 10 01 92 181 Mr. Dolan, General Manager-Chief Engineer, stated that it would be appropriate at this time to move to Item 11.a.2). President Boneysteele proceeded to Item 11.a.2), Solid Waste Rate Applications. 11. REPORTS GENERAL MANAGER-CHIEF ENGINEER a. 2) Mr. Dolan, General Manager-Chief Engineer, stated that rate applications have been received from Valley Waste Management and Orinda-Moraga Disposal. Mr. Walter N. Funasaki, Finance Officer, is beginning his rate analysis. There are several issues which have been identified by the staff and, of course, as we get further into the analysis we may uncover additional issues. Valley Waste Management is requesting a 23 percent increase in all areas except Lafayette where they are requesting a 45 percent increase. Orinda-Moraga Disposal is requesting 29 percent increase. Issues include disposal expenses currently at $77 projected to be $89. Reduction in capacity at Waste Fibre Recovery will dramatically increase the cost of the green waste program. Valley Waste Management is asking for a return to the operating ratio method of calculating rates which would substantially increase its profits. Both franchisees have suffered a substantial decrease in drop box revenue related to decline in construction activity. The rate setting process begins now and will end in December or January 1 993. Member Boneysteele reverted to the order of the agenda. 7. CORRESPONDENCE LETTER TO BOARD ENCLOSING SAN JOSE MERCURY NEWSPAPER ARTICLE a. Receipt of letter to the Board enclosing San Jose Mercury newspaper article entitled "San Jose Lost Millions to Trash Firm" was noted. Staff was unable to respond to sender because no return address was provided. The article noted that more than four years after Waste Management began collecting San Jose garbage, the city discovered it had overpaid the contractor from $4 million to $6 million. The sender expressed concern and hoped CCCSD was doing a better job than San Jose in handling its garbage franchise with Waste Management. Mr. Ron Proto, of Valley Waste Management, responded to Questions from the Board stating that in early 1987, a year after the contract began, the city was supposed to review and approve the first of what would be five annual adjustments to Waste Management's earnings. The adjustments were based on a complex formula with variables to account for increases or decreases in fuel prices and/or cost of living. That year, the fuel price index dropped. Therefore, the payments to Waste Management should have dropped. However, it was overlooked. That error, of 31 cents per household per month, compounded over several years to $4 million to $6 million, depending on the interest rate used in the calculation. Mr. Proto stated that the problems that occurred in San Jose could not occur with CCCSD as the franchisor because our franchise is handled in a totally different manner than the San Jose franchise. President Boneysteele noted receipt of the letter and explanation by Mr. Proto. 8. APPROVAL OF MINUTES a. MINUTES OF SEPTEMBER 16. 1992 It was moved by Member Starita and seconded by Member Rainey, that the minutes of September 16, 1992, be approved as presented. There being no objection, the motion was unanimously approved. 10 01 92 182 a. 9. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED OCTOBER 1. 1 992 Member Starita, member of the Budget and Finance Committee, stated that he and Member Dalton reviewed the expenditures and found them to be satisfactory. It was moved by Member Starita and seconded by Member Dalton, that Expenditure List dated October 1, 1992, including Self-Insurance Fund Check Nos. 100634-100638, Running Expense Check Nos. 70561-70856, Sewer Construction Fund Check Nos. 11517-11568, and Payroll Fund Check Nos. 28904-29210, be approved as recommended. There being no objection, the motion was unanimously approved. None a. 10 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 11. REPORTS GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Roger J. Dolan, General Manager-Chief Engineer, introduced Mr. Robert A. Baker, Deputy Chief Engineer, who provided an update on the proposed Tri-Valley Wastewater Authority (TWA) project. Mr. Baker stated that many things have taken place since the last Board update. On September 22, 1992, TWA held a public meeting at Park Place in Walnut Creek. Mr. Paul Morsen, Deputy General Manager, attended with other staff. Four CCCSD Board members also attended. Public comments were about equal for and against the project. On September 28, 1992, a TWA to CCCSD staff meeting was held. Conditions for consideration of a joint service agreement are being negotiated such as payment terms for the San Ramon Valley Interceptor and allowable flow peaks that TWA would be allowed to send to CCCSD in the winter. A TWA liaison committee meeting was held on September 29, 1992 at the Dublin San Ramon Services District offices. At that meeting Mr. Bob Whitley, the General Manager of TWA, commented that he has asked the Contra Costa Council to take a position on this issue. Mr. Palmer Madden was designated as the person to take the lead on this issue for the Contra Costa Council. The Contra Costa Council will take a position on TWA in the next two to three months. On September 9, 1992, Mr. John Nejedley made a presentation to LAFCO with his comments and objections to the TWA project. LAFCO responded with a letter from its General Manager that they do not have jurisdiction over this issue. The Contra Costa Taxpayers Association wrote a letter of support, but also stated they need to review the terms and conditions of the agreement before final judgment. The Association for the Preservation of Danville Blvd. has concerns about community impact from construction. The Alamo Improvement Association has no opposition at this time. TWA will most likely certify the EIR on October 22, 1992. The conceptual terms and conditions of the agreement will be completed near the end of October. There will be a Liaison Committee Meeting on November 4, 1992. If the present schedule continues as expected, the CCCSD Board may be asked to consider the terms and conditions in November 1992. The terms and conditions will enable TWA to calculate their member agency costs and will have enough detail to allow those agencies to make a decision on joining TW A and in what capacity. It is planned that the terms and conditions document will be submitted by CCCSD to a third party for review. At the same time, there will be a review of the environmental issues as they relate to the CCCSD service area. The Board will then be able to analyze the project in relation to its benefits to CCCSD ratepayers. Preliminary approval is scheduled to be requested in mid to late winter; then if both boards decide to move ahead with the project, a contract would be drafted and final approval could be requested in the summer of 1993. 01 92 b. 183 Member Clausen stated that during the EIR process on the San Ramon Valley Trunk Sewer Interceptor Project he requested that the size of the pipe be increased. President Boneysteele requested an analysis of the costs and economic benefits along with an explanation of potential sewer overflows and how they may change as a result of the proposed TWA project. He also requested that all concerns by citizens and citizen groups be addressed. Mr. Baker responded by saying that on September 1, 1992, the staff proposed a third party evaluation of the impact of TW A sewer service. President Boneysteele's concerns are noted and will be covered in this review which is anticipated to be completed in the spring of 1 993. President Boneysteele also requested staff to ask for a response in writing from Contra Costa Water District regarding their concerns, if any, of the proposed TWA projects' affect on their water supply. Upon further discussion it was decided not to pursue this with the Water District at this time, but to continue dialogue with them regarding this issue. 2) This item was taken out of order earlier in the agenda. 3) Mr. Dolan reported that he received a letter from Mr. Tom Bruen asking for approval of the transfer of Pleasant Hill Bay Shore Disposal franchise from Boyd Olney to Pleasant Hill Bayshore Disposal Inc., a Subsidiary of Browning Ferris Industries (BFI). District staff will review the situation internally and will be meeting with concerned parties. Mr. Dolan will keep the Board informed on this issue. 4) Mr. Dolan announced that the District is currently advertising for District Project No. 4921, Sewer Replacement-Magee Park. The project consists of approximately 7,000 lineal feet of 8-inch pipe. The estimated cost of the project is $100,000. 5) Mr. Dolan announced the he observed from attending the Water Environment Federation Conference that the District's Collection System Operations Department is recognized nationally for its applications of No-Dig Technology in pipeline maintenance. 6) Mr. Dolan announced that he received a letter from Mr. Anthony M. Tabacco, which was copied to Board Members, requesting pavement mitigation for recent underground construction in Westwood Court in Orinda. CCCSD staff responded in a letter to Mr. Tabacco that CCCSD is willing to contribute the funds that it had allocated for slurry seal pavement restoration in Westwood Court to a fund administered by the residents of Westwood Court which can, along with other funds, be used for repairing the street. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, stated that CCCSD and our four solid waste franchising cities are involved in litigation regarding Acme Fill Corporation. So far, legal services on this issue have handled separately by each agency. The Central Contra Costa Solid Waste Authority is comprised of CCCSD, the City of San Ramon, and the City of Walnut Creek and deals with solid waste issues. Because of our commonality of interests with the City of San Ramon and the City of Walnut Creek, Mr. Aim asked the Board's direction in the area of joint defense in order to save some of the costs of litigation. Following discussion, is was the consensus of the Board that CCCSD establish joint defense in the Acme litigation with the City of San Ramon and the City of Walnut Creek. This joint defense will be handled by Kenton L. Aim. 2) Mr. Aim stated that in 1965 to 1966 CCCSD received from Shell Oil Company petroleum refinery type waste materials produced by the Shell 10 01 92 184 refinery. These wastes were accepted by the District and deposited on District property as soil amendments. Concerns have arisen regarding the hazardous nature of these materials. CCCSD is requesting a contribution from Shell Oil for the cost to clean up these materials. The statute of limitations for initiation of a lawsuit, should it be necessary, passes next spring. We are in negotiations with Shell regarding this issue and do not wish to initiate litigation at this time. Mr. Aim suggested the Board authorize a tolling of the statute of limitations. This will allow negotiations to continue to the end that an agreement may be reached without the need for a lawsuit. Following discussion, it was moved by Member Clausen and seconded by Member Rainey that District staff be authorized to enter into the CCCSD-Shell Oil Tolling Agreement. There being no objection, the motion was unanimously approved. c. SECRETARY OF THE DISTRICT 1 ) Following discussion, it was the consensus of the Board, that the November 5, 1992 Board Meeting be rescheduled for 3 p.m. on November 4, 1992. d. BOARD MEMBERS None 12. ANNOUNCEMENTS None 13. CLOSED SESSION None 14. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 15. ADJOURNMENT There being no further business to come before the Board, President Boneysteele adjourned the meeting at the hour of 5:03 p.m. President of the Board of Directors, Central Contra Costa Sanitary Dist t, County of Contra Costa, State of California COUNTERSIGNED: .. Cl. ..¿ ¿, /1 ~ s~c ei ry of the Central Co a Cõsta Sanitary District, County of Contra Costa, State of California 10 01 92