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HomeMy WebLinkAboutBOARD MINUTES 10-15-92 185 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON OCTOBER 15, 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 15, 1992. President Boneysteele called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Clausen, Dalton, Starita, Boneysteele ABSENT: Members: Rainey Member Rainey entered the meeting at the hour of 3:05 p.m. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS Mr. Roger J. Dolan, General Manager-Chief Engineer, announced that the Employee Service Award luncheon recognizing employees with ten, fifteen, twenty, twenty-five, and thirty years of service, will be held on November 4, 1992, at the Velvet Turtle. It was moved by Member Starita and seconded by Member Clausen, that Resolution No. 92-076 be adopted, honoring employee service award recipients Cheri Arstani, David Baldi, Jim Belcher, Kimble Best, Bud Blasingame, Parke Boneysteele, Bill Brennan, Jack Case, Roger Dolan, Steve Elsberry, George Fowler, Jan Frost, Bill Gregory, Jim Hampton, Robert Higgins, Bill Horsfall, Julie Lopez, Pedro Mendoza, James Minor, Ken Moon, Dale Ohda, Allen (James) Robinson, Jim Ruetenik, Brad Scalise, Adela Schwitters, Greg Walker, Joe White, Harry Winston, Ken Youry and Jim Zeiger; that Resolution No. 92-077 be adopted, honoring Jack Case, Associate Engineer, for twenty years of service; that Resolution No. 92-078 be adopted, honoring Bill Gregory, Real Property Specialist, for twenty years of service; that Resolution No. 92-079 be adopted, honoring Pedro Mendoza, Chemist II, for twenty years of service; that Resolution No. 92-080 be adopted, honoring Dale Ohda, Plant Maintenance Superintendent, for twenty years of service; that Resolution No. 92-081 be adopted, honoring Allen (James) Robinson for twenty years of service; that Resolution No. 92-082 be adopted, honoring Jim Ruetenik, Engineering Assistant for twenty years of service; that Resolution No. 92-083 be adopted, honoring Kimble Best, Construction Inspector, for twenty-five years of service; and that Resolution No. 92-084 be adopted, honoring Parke Boneysteele, President of the Board of Directors, for twenty-five years of service; that Resolution No. 92-085 be adopted, honoring Joe White, Maintenance Crew Member II, for twenty-five years of service; and that Resolution No. 92-086 be adopted, honoring Jan Frost, Administrative Secretary, for thirty years of service. The motion was adopted by unanimous consent. Member Rainey entered the meeting at the hour of 3:05 p.m. 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, resolutions adopted as appropriate, and recordings duly authorized. a. The Board was advised of the close out of the Treatment Plant Landscape Project, Phase II, DP 10079. This item was presented for the Board's information. No action was taken. 10 15 92 186 b. Quitclaim Deed to Mr. Walter J. Herbert, Jr., et ux, Job 2924, Orinda area, was approved, the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said Quitclaim Deed, and Resolution No. 92-087 was adopted to that effect. The motion was unanimously approved on the following vote: AYES: Members: Clausen, Dalton, Starita, Rainey, Boneysteele NOES: Members: None ABSENT: Members: None c. The II Amended Assessment Diagram, II apportionment of assessment amounts, and the recording of said diagram were approved, Local Improvement District (LID) 56, Walnut Creek area. The motion was unanimously approved on the following vote: AYES: Members: Clausen, Dalton, Starita, Rainey, Boneysteele NOES: Members: None ABSENT: Members: None d. The II Amended Assessment Diagram, II apportionment of assessment amounts, and the recording of said diagram were approved, Local Improvement District (LID) 57, Lafayette area. The motion was unanimously approved on the following vote: AYES: Members: Clausen, Dalton, Starita, Rainey, Boneysteele NOES: Members: None ABSENT: Members: None 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 6. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO ALLOCATE $40.000 FROM THE GENERAL IMPROVEMENTS PROGRAM CONTINGENCY ACCOUNT FOR THE RECONSTRUCTION OF AN EXISTING CROSSING OF THE SANTA FE RAILWAY. DP 20149 Mr. Dolan, General Manager-Chief Engineer, stated that the District, IT Corporation and Contra Costa Water District each have agreements with Santa Fe Railway granting permission to cross the railway at the northwest corner of the District Treatment Plant property. Santa Fe Railway has notified the District that the existing råilway crossing must be reconstructed. It is recommended that $40,000 be authorized as the District's share of this reconstruction. Following discussion, it was moved by Member Rainey and seconded by Member Starita, that the General Manager-Chief Engineer be authorized to allocate $40,000 from the General Improvements Program Contingency Account for the reconstruction of an existing crossing of the Santa Fe Railway. There being no objection, the motion was unanimously approved. 10 15 92 187 7. COLLECTION SYSTEM AUTHORIZE ALLOCATION OF $45.000 FROM GENERAL IMPROVEMENT CONTINGENCY FUND FOR ALTERNATIVE FUEL VEHICLE PROGRAM a. Mr. Dolan, General Manager-Chief Engineer, stated that Mr. John Larson, Collection System Operations Department Manager, made a presentation on the Alternative Fuel Vehicle Program at the last Board meeting. It is recommended that funds be authorized for conversion of three pick-up trucks and one passenger vehicle to dual fuel use (retaining the ability to use gasoline), and purchase and installation of a pre-fabricated fueling station. Discussion followed concerning the percentage of alternative fuel vehicles required by the draft Clean Air Plan by the year 2000, the possibility of grant reimbursement, and types of alternative fuels available. It was moved by Member Starita and seconded by Member Rainey, that allocation of $45,000 from the General Improvement Contingency Fund be authorized for the Alternative Fuel Vehicle Program. There being no objection, the motion was unanimously approved. 8. PERSONNEL a. DELETE THE POSITION OF FINANCE OFFICER EFFECTIVI; JANUARY 31. 1993 AND CREATE THE MANAGEMENT POSITION OF CONTROLLER. M-33 ($5.034- $6.119), APPROVE THE CLASS DESCRIPTION. AND MAKE THE APPOINTMENT TO THE POSITION EFFECTIVE OCTOBER 21. 1992 Mr. Dolan, General Manager-Chief Engineer, stated that this item has been discussed with the Board Personnel Committee. Mr. Dolan introduced Ms. Debbie Ratcliff, Accounting Supervisor. Although it will be difficult for anyone to replace Finance Officer Walter Funasaki, it was fortunate that when Mr. Funasaki made the selection to hire Ms. Ratcliff, the District was able to hire someone who could take over for Mr. Funasaki when he retires. Following discussion, it was moved by Member Rainey and seconded by Member Starita, that the management position of Controller, M-33 ($5,034-$6,119) be established; that the proposed class description for the position of Controller be approved; that Ms. Debbie Ratcliff be appointed to the Controller position effective October 21, 1992; that the Finance Officer position, M-29 ($5,556 - $6,752) be deleted effective January 31, 1993; and that Resolution No. 92-088 be adopted to that effect. There being no objection, the motion was unanimously approved. 9. APPROVAL OF MINUTES MINUTES OF OCTOBER 1. 1992 a. It was moved by Member Rainey and seconded by Member Dalton, that the minutes of October 1, 1992 be approved as presented. There being no objection, the motion was unanimously approved. 10. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED OCTOBER 15. 1992 a. 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 October 15, 1992, including Self-Insurance Fund Check No.1 00639-1 00640, Running Expense Check Nos. 70857-71252, and Sewer Construction Fund Check Nos. 11569-11623, be approved as recommended. Following discussion, the motion was unanimously approved. 1.0 15 92 188 11. BUDGET AND FINANCE RECEIVE THE AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30. 1992 a. Mr. Walter N. Funasaki, Finance Officer, stated that the firm of Maze and Associates, Certified Public Accountants, has completed examination of the District's financial statements for the fiscal year ended June 30, 1992, and has submitted the audited financial statements and auditor's opinion thereon. Mr. Funasaki reviewed the results of Operations and Maintenance revenues and expenses and the recommendations made by the auditors on internal accounting controls. Mr. Funasaki reported that actual revenues were $26,395,000, which is $554,000 less than budget representing a 2.1 percent unfavorable variance. Anticipating the shortfall in revenues, District managers achieved a $508,000 lower than budget expense for the fiscal year. Actual expenses were $26,464,000, representing a 1.9 percent favorable variance. As a result, revenues under expenses of $69,000 were $46,000 higher than budget of $23,000. This produced a Retained Earnings at June 30, 1992, of $1,767,000. Mr. Funasaki reported that the auditors offered two recommendations regarding improvements in the system of internal accounting controls. First, the auditors recommended that the District consider computerizing developer rebate records maintained by the Permit Section. Conversion of the developer rebate records is included in the new District-wide Management Information System (MIS) project. Second, the auditors recommended that checks be restrictively endorsed immediately upon receipt. This procedure has been implemented. Following discussion, President Boneysteele declared that the audited financial statements and related recommendations for improvements in internal accounting controls for the fiscal year ended June 30, 1992, were duly received. b. RECEIVE SEPTEMBER 1992 FINANCIAL STATEMENTS Mr. Walter Funasaki, Finance Officer, reviewed the results of operations and maintenance revenues for the Quarter ended September 30, 1992, noting that actual operations and maintenance revenues of $1,703,000 were $47,000 less than budget, representing a 2.6 percent unfavorable variance. Mr. Funasaki reported that for the month of September 1992, operations and maintenance expenses of $2,116,000 were $264,000 less than budget, representing an 11.1 percent favorable variance. For the three months ended September 30, 1992, actual expenses of $6,371,000 were $751,000 less than budget, representing a 10.5 percent favorable variance. Mr. Funasaki reported that the District's temporary investments were held in Treasury bills and Treasury notes and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 4.195 percent to 8.125 percent. The latest interest rate at September 30, 1992 was 5.327 percent. The average yield of the LAIF account through August 1992 was 4.958 percent. President Boneysteele noted that extending maturities on investments to match expenditures has begun. Mr. Dolan introduced Mr. Jarred Miyamoto-Mills, Principal Engineer, who provided Sewer Construction Fund and Capital Improvement Program reports for the quarter ended September 30, 1992, noting that Sewer Construction Fund revenues were $2,213,000 and expenditures were $4,031,000 for net revenues under expenditures of $1,818,000. Following discussion, President Boneysteele declared that the September 1992 Financial Statements were duly received. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 10 15 92 a. 189 13. REPORTS GENERAL MANAGER-CHIEF ENGINEER 1) Mr. Dolan, General Manager-Chief Engineer, introduced Ms. Elaine Jacobs, Assistant Engineer, Solid Waste, who provided an overview of the proposed Backyard Composting Program, noting that new information has been received allowing staff to develop a better approach while still meeting the original program objectives and coming in under budget. The objectives of the program are to accommodate a high rate of participation and to be easily accessible to all interested households, to stay within the 1992-1993 budget of $125,000, to increase the current rate of participation in home composting to 1 7 percent in order to achieve a 1 percent diversion rate by 1995, to accomplish the program over a three-year period with current staffing levels, and to position the District as a progressive agency doing important solid waste reduction, reuse and recycling work. Ms. Jacobs stated that the original approach included workshops, a demonstration garden, and a reusable instructional video and brochure. Rather than having a demonstration garden, workshops will be conducted at retail nurseries; and rather than having the District produce an instructional video, a video produced by the State and available at a cost of $2 each will be used. Ms. Jacobs reviewed the budget cost estimates totalling $58,600 compared to the original budget estimate of $125,000. Ms. Jacobs noted that these figures are estimates and may vary depending on the level of interest in the program. Member Rainey questioned whether the cost of $58,000 for a 1 percent reduction in the wastestream is of sufficient benefit to warrant proceeding with the backyard composting program. In addition, the $58,000 estimated cost does not include a cost for staff time. Mr. Dolan agreed that the $58,000 was a substantial cost, but indicated that the issue of compliance with the Source Reduction and Recycling Elements of the AB 939 Plan must be considered. Furthermore, the cost of other source reduction strategies appears to be comparable when considering the relative solid waste reduction effectiveness. Ms. Jacobs stated that the Contra Costa Solid Waste Authority is investigating opportunities for pooling efforts and reducing costs for individual agencies. Member Clausen expressed concern about the cost of composting in general and indicated that efforts should be made to reduce those costs as much as possible, but expressed support for the program. President Boneysteele thanked Ms. Jacobs for her informative report. Mr. Dolan stated that staff appreciates the continuing support for the program and that they share the Board's concern for fiscal conservatism and will continue to be sensitive to it as the District proceeds with the program as outlined by Ms. Jacobs. 2) Mr. Dolan, General Manager-Chief Engineer, reported that the District has been able to make productive use of the time which has become available as a result of the recent building industry slowdown. In an effort to check for instances where the District might be underbilling or not billing customers for services rendered, Mr. Harry Vaile, Engineering Assistant, has written a program comparing the District's commercial and multi-unit residential accounts with the County's records. A list of inconsistencies was produced. The Permit Section compared the list against District records and Construction Inspection staff conducted field checks to verify the results. Mr. Steve Elsberry, Senior Accountant/Internal Auditor, confirmed the findings against the District's manual records. The actual number of verified inconsistencies is very small compared to the number of accounts. However, the District has not yet checked the single family residential accounts. The Board will be kept apprised of the results of that effort as it progresses. Mr. Dolan introduced Mr. Elsberry who reported that staff work identified 82 parcels with total Sewer Service Charges owing of $125,464. The 10 92 15 190 3) charges were either omitted from the tax rolls altogether or were charged for an incorrect number of units. The 1991-1992 billings were corrected immediately using revised tax bills, leaving three prior years to be collected as provided in the District Code and in accordance with the statute of limitations. Mr. Dolan stated that staff believes the impact on the customers should be mitigated as much as possible. It is recommended that the customers be informed of the amount due, but given the opportunity to spread the payment over three years if they execute an agreement to that effect. Relief should be given to those who have owned the property for less than three years. Following discussion, the Board concurred with the staff proposal for collection of unpaid Sewer Service Charges. Mr. Elsberry stated that the erroneous information that caused these billings extends back some years and is of a clerical nature. Since this came to light, steps have been taken to minimize the likelihood of future errors. In addition, accounting staff is coordinating with the Permit Section to reduce the possibility of human errors. Mr. Dolan reported that during the last fiscal year, some damage to the refractory bricks was noted on one of the hearths of one of the furnaces. An expert was hired to define the scope of the needed repairs and Quotes were solicited from three specialty companies. Staff is proceeding with the repair under the terms of a negotiated contract with the company which gave the lowest Quote. The cost will be approximately $35,000. Staff considered whether preparation of costly design documents and processing through the public bidding procedure were required. It was determined that the negotiated Quote was acceptable under the circumstances as the work is limited to one of the eleven hearths and some spot repairs and does not entail construction, reconstruction, alteration, enlargement, renewal or replacement of the facility. Staff believes that a project such as a major rebricking job would require bidding unless the need was caused by an emergency failure of some kind. At 4:48 p.m., Member Rainey apologized and left the meeting indicating that she had to attend two other meetings. 4) b. 10 15 Following discussion, the draft letter to Contra Costa County concerning the Acme composting operation was approved as revised. 5) Mr. Dolan announced that Deputy Chief Engineer Robert Baker will be attending a New York City Sludge Disposal Task Force meeting. In this capacity, Mr. Baker has been able to remain current with the latest sludge regulations. Mr. Baker's expenses will be paid by New York City. 6) Mr. Dolan announced that Purchasing and Materials Officer Ken Laverty will be attending a National Purchasing Institute (NPI) meeting in Tempe, Arizona. Mr. Laverty is an officer in NPI. His expenses will be paid by that organization. 7) Mr. Dolan announced that the District is currently advertising for bids for gas turbine/generator switchgear for the Cogeneration Project. The estimated cost for this portion of the project is $2.5 million. The overall project cost is over $5 million. 8) Mr. Dolan announced that the District is advertising for installation of fiber optic cable. The estimated cost of the project is $25,000. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, announced that both Orinda- Moraga Disposal Service and Valley Waste Management have submitted significant requests in their rate applications for compensation for attorney 92 191 fees for the CERCLA lawsuit. Following a brief discussion, the Board requested that this matter be calendared for policy-level consideration prior to the rate-setting process. c. SECRETARY OF THE DISTRICT 1 ) Ms. Joyce Murphy, Secretary of the District, distributed the July-September 1992 Training/Conference Summary. d. BOARD MEMBERS 1 ) Member Clausen reported that at a recent Central Contra Costa Solid Waste Authority meeting, search for an Administrative Manager was authorized. 14. ANNOUNCEMENTS None 15. CLOSED SESSION a. SIGNIFICANT EXPOSURE TO LITIGATION Pursuant to Government Code Section 54956.9(b), a point has been reached where in the opinion of the Board of Directors of the Central Contra Costa Sanitary District on the advice of its Counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the District. b. INITIATION OF LITIGATION Pursuant to Government Code Section 54956.9(c), on the advice of Counsel based on existing facts and circumstances, the Board of Directors of the Central Contra Costa Sanitary District had decided to initiate or is deciding whether to initiate litigation. c. PERSONNEL The closed session was held to discuss personnel matters pursuant to Government Code Section 54957. Prior to going into closed session, Mr. Kenton L. Aim, Counsel for the District, referenced a Fair Political Practices Commission (FPPC) opinion issued in November 1986 with regard to the appropriateness of President Boneysteele entering into discussions of matters relating to Rossmoor. At that time, the FPPC concluded that President Boneysteele could participate in discussions and decisions relating to Rossmoor since he would be affected identically to the other residents in the development. Mr. Aim stated that he has reviewed the current facts and did not find any significant change in circumstances had occurred that would present a conflict of interest. At 5:05 p.m., President Boneysteele declared the closed session to discuss litigation pursuant to Government Code Sections 54956.9(b) and (c) and personnel matters pursuant to Government Code Section 54957. At 6: 15 p.m., President Boneysteele concluded the closed session and reconvened the meeting into open session. 16. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 10 15 92 192 1 7. ADJOURNMENT There being no further business to come before the Board, President Boneysteele adjourned the meeting at the hour of 6: 16 p.m., to reconvene in adjourned regular session at 6:30 p.m., Thursday, October 22, 1992 for a meeting of the Sanitation and Water Agencies of Contra Costa County to discuss areas of mutual concern. President of the Board of Direct Central Contra Costa Sanitary strict, County of Contra Costa, State of California COUNTERSIGNED: J t, / ',L,L { SeþrJta of the Central Co a Costa Sanitary District, County of Contra Costa, State of California 10 15 92