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HomeMy WebLinkAboutBOARD MINUTES 11-04-92 194 MINUTES OF THE ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON NOVEMBER 4, 1992 The District Board of the Central Contra Costa Sanitary District convened in an adjourned regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 3 p.m. on Wednesday, November 4, 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 Starita and seconded by Member Rainey, that the Consent Calendar, consisting of Items a. through d., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Authorization was given for P. A. 92-9 (Alamo) to be included in a future formal annexation to the District. Motion unanimously approved on the following vote: AYES: Members: Starita, Rainey, Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: None b. The contract work for the construction of the Sewer Rehabilitation Project at Soares Lane, South Trail, and Dalewood Drive in Lafayette and Orinda (DP 4294) was accepted and the filing of the Notice of Completion was authorized. Motion unanimously approved on the following vote: AYES: Members: Starita, Rainey, Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: None -'" The Board was advised of the close out of the Mt. Diablo Siphon Sliplining Project, DP 4535B, in Walnut Creek. This item was presented for the Board's information. No action was taken. c. d. The attendance of Mr. Henry Thom, Senior Engineer for the Infrastructure Division, was authorized at the January 19-20, 1993 American Society of Civil Engineers (ASCE) Trenchless Technology Seminar in Foster City, California, at a cost of $790. Motion unanimously approved on the following vote: 11 04 92 195 AYES: Members: Starita, Rainey, Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: None 4. CALL FOR REOWIS...JO CONSIDEB..JTEMS OUT OF ORDER None 5. BIDS AND AWARDS a. AUTHORIZE AWARD OF CONTRACT FOR THE HAP MAGEE PARK SEWER REPLACEMENT IN DANVILLE. DP 4921. TO D.R. LEMINGS CONSTRUCTION COMPANY Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that the position paper defines the project and describes the need for the sewer replacement. Staff would recommend authorization to award the contract to D.R. Lemings Construction Company, the lowest responsible bidder. Following discussion concerning the cause of the settling of the soil which caused the damage to the existing pipeline and payment for the park improvements, it was moved by Member Clausen and seconded by Member Starita, that award of contract for the Hap Magee Park Sewer Replacement, DP 4921, in the amount of $86,785 be authorized to D.R. Lemings Construction Company as the lowest responsible bidder. Motion unanimously approved on the following roll call vote: AYES: Members: Clausen, Starita, Dalton, Rainey, Boneysteele NOES: Members: None ABSENT: Members: None 6. ADMINISTRATIVE a. RECEIVE THE 1991-1992 ANNUAL REPORT OF THE DEFERRED COMPENSATION PLAN ADVISORY COMMITTEE Mr. Dolan, General Manager-Chief Engineer, stated that the Deferred Compensation Plan Advisory Committee 1991-1992 Annual Report is Quite complete. Staff would be happy to answer any Questions the Board may have. There being no objection, President Boneysteele declared the Annual Report of the Deferred Compensation Plan Advisory Committee for 1991-1992 was duly received. 7. ENGINEERING a. COMMENT ON PROPOSED ANNEXATION OF 675 ACRES IN THE SAN RAMON AREA. KNOWN AS NORRIS CANYON BOUNDARY REORGANIZATION Mr. Dolan, General Manager-Chief Engineer, stated that this request is a bit unusual. Seldom is the District asked for comments at this stage of a boundary reorganization. It is believed that the applicants have requested comments at this time because of they recognize the sensitivity of development in this area. Recognizing that the District is not a growth planning organization, staff would recommend that if this project is developed, all the normal District requirements, rules, and regulations, such as public sewer easements, access to all sewer facilities, source control requirements, District fees and charges due at time of connection, and hillside and creek area policies, be imposed. The applicants have been informed of the District's requirements. Discussion followed concerning annexation and facility capacity fees, capacity of the downstream public sewer system, tax revenues from the development, and the deed restriction of the remaining acreage for agricultural use. 11 04 92 196 Mr. Thomas Krehbiel, Project Manager for the developer, stated that the residual property will be held by the Wiedemann family and East Bay Regional Park District. It will be deed restricted to Contra Costa County and the East Bay Regional Park District. One dwelling unit per 200 acres, or a maximum of three dwelling units, will be permitted. There being no objection, it was the consensus of the Board that the requirements which District staff has placed on the development of Subdivision Nos. 7575 and 7578 are necessary and proper, that similar requirements will be placed on other developments within the area which is proposed for annexation to the District, and that the Board has no objections to the annexation to the District of the 675 acres of land in the San Ramon area known as the Norris Canyon Boundary Reorganization. b. APPROVE GRANT OF SURPLUS DISTRICT LAND TO THE CITY OF CONCORD FOR HIGHWAY 680 OFF AND ON RAMPS AT BURNETT AVENUE Following discussion of the impact of the described project on Burnett Avenue and the surrounding streets, it was moved by Member Dalton and seconded by Member Rainey, that the Board of Directors finds that the land to be granted is surplus land which is exempt from the Government Code requirements regarding offering for sale or lease to designated entities; and that Resolution No. 92-089 be adopted, authorizing the President of the District Board of Directors and the Secretary of the District to execute a Grant Deed and Right-of-Way Contract and to take such other actions as my be required to complete the transaction. Motion unanimously approved on the following roll call vote: AYES: Members: Dalton, Rainey, Clausen, Starita, Boneysteele NOES: Members: None ABSENT: Members: None a. 8. CORRESPONDENCE NOTE RECEIPT OF OCTOBER 20. 1992 LETTER FROM MR. VALENTIN ALEXEEFF. DIRECTOR OF THE GROWTH MANAGEMENT AND ECONOMIC DEVELOPMENT AGENCY OF CONTRA COSTA COUNTY. EXTENDING THE DISTRICT'S TRANSITIONAL PERMIT FOR SOLID WASTE FRANCHISING AND COLLECTION TO DECEMBER 31. 1992 Following discussion, receipt was noted of the October 20, 1992 letter from Mr. Valentin Alexeeff, Director of the Growth Management and Economic Development Agency of Contra Costa County, extending the District's transitional permit for solid waste franchising and collection to December 31, 1992. b. NOTE RECEIPT OF LETTER FROM MR. RONALD J. PROTO. GENERAL MANAGER. AND MR. DOUGLAS P. GRIFFITH. CONTROLLER OF VALLEY WASTE MANAGEMENT. REQUESTING THE USE OF A MODIFIED OPERATING RATIO IN THE RATE-SETTING PROCESS Mr. Dolan, General Manager-Chief Engineer, stated that this is advance notice that Valley Waste Management will request that an operating ratio rather than the customer equivalent unit calculation be used in the coming refuse collection rate-setting process. Mr. Dolan stated that changing the cost of the service, or Quality of service modification factors could achieve the same result requested by the collector without building in a profit for inefficiency incentive. Also, the Board could consider a profit for new service levees such as commercial recycling. Following discussion, it was the consensus of the Board that staff be directed to respond that the request for use of an operating ratio will be considered in connection with the rate increase application. However, the staff analysis will be based on the customer equivalent unit profit basis. 11 04 92 197 c. The Board noted receipt of the letter from Mr. Robert Adams, City Manager of the City of Lafayette, concerning the Valley Waste Management application for refuse collection rate increase and concurred with the staff response to said letter. 9. APPROVAL OF MINUTES MINUTES OF OCTOBER 15. 1992 a. It was moved by Member Rainey and seconded by Member Starita, that the minutes of October 15, 1992, be approved as presented. There being no objection, the motion was unanimously approved. 10. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED NOVEMBER 4. 1992 a. 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 the Expenditures List dated November 4, 1992, including Self-Insurance Check Nos. 100641-100645, Running Expense Check Nos. 71253-71641, Sewer Construction Check Nos. 11624- 1 1714, and Payroll Check Nos. 2921 1 -295 10, be approved as recommended. Following discussion, the motion was unanimously approved. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 12. REPORTS GENERAL MANAGER-CHIEF ENGINEER a. 1 ) Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Walter N. Funasaki, Finance Officer, who stated that the Keller Canyon Landfill fee is a major component of the Acme Transfer Station fee. Mr. Funasaki summarized the composition of the Keller Canyon Landfill interim fee set by the Board of Supervisors in May 1992 and the Keller Canyon Landfill final fee set by the Board of Supervisors in August 1992. The interim landfill fee is $32.95 plus the County Transportation Mitigation Fee of $2, Open Space Mitigation Fee of $2, Community Mitigation Fee of $2, and a County franchise fee of $3.30 per ton, which total $42.25 per ton as the landfill gate fee. The mitigation fees will produce approximately $1.9 million in revenues to the County based on projected tonnage in 1993 and the County franchise fee which will produce approximately $1 .1 million in revenues to the County in 1993. The final landfill fee set by the Board of Supervisors in August 1992 was $38.48 plus a State fee of $.75 per ton, County mitigation fees totalling $6 per ton, and the County franchise fee of $3.85 per ton, producing a landfill gate fee of $49.08 per ton. In response to a Question from Member Rainey, Mr. Funasaki stated that the County resource recovery fee of $300,000 is included in the operations and maintenance expense component of the Keller Canyon Landfill fee. Member Rainey expressed concern that by including that County fee in the operations and maintenance expense, it would be included in the calculation of profit and franchise fees. Member Rainey stated that it is important for the public to know all of the charges being imposed by the County and requested a breakdown of those charges. Mr. Dolan stated that staff would prepare the breakdown and distribute it to the Board. 11 04 92 198 Mr. Funasaki stated that the interim Keller Canyon Landfill gate fee of $42.25 is included in the Acme Interim Transfer Station fee being charged to the District's franchisees. Mr. Funasaki reviewed the composition of the Acme Interim Transfer Station fee of $77.07 and the $90.26 fee which is currently being reviewed by the County's consultant Deloitte & Touche for action by the Board of Supervisors on November 17, 1992. Following discussion, it was moved by Member Starita and seconded by Member Rainey, that a letter be sent from the General Manager-Chief Engineer to the County Administrative Officer with copies to the Members of the Board of Supervisors, supporting actions of the Board of Supervisors and restating the position taken by the CCCSD Board in the past, that the Board of Supervisors is not obliged to pass through closure and post-closure costs because the Acme Transfer Station is a regulated operation which is independent and separate from the unregulated operation of the landfill which incurred the liability; that any collection of closure and post-closure costs must ensure that there is a pro rata distribution of costs limited to costs the parties are legally required to pay, that a trust account be established, that full commitment of Acme's assets to closure be made, that all responsible parties be brought into the cost of closure and post-closure, and that compliance with Federal regulations be maintained; and that the District has gone on the record a number of times objecting to the type and magnitude of other fees and silence on those fees at this time does not mean acquiescence or approval of them. Motion unanimously approved on the following roll call vote: AYES: Members: Starita, Rainey, Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: None Mr. Funasaki reviewed the significant legal expenses related to the Acme closure lawsuit projected for 1992 and 1993 contained in the 1 993 rate applications of Valley Waste Management and Orinda-Moraga Disposal. Discussion followed concerning issues relating to pass through of those expenses. Mr. Dolan stated that the Board will recall that the Lafayette City Council urged the District's Board not to impose roller carts on the citizens of Lafayette, causing two levels of services in the Valley Waste Management service area franchised by the District. The predictable result has been a large rate increase for the Lafayette service area. In order to meet the AB 939 goals for 25 percent source reduction and recycling, it is necessary to have separate collection of green waste. Separate collection of green waste is being implemented as part of the automatic collection program elsewhere in the District. Adding separate collection of green waste will raise the Lafayette rates even further. Mr. Funasaki presented an analysis of the impact on rates for separate green waste collection for the City of Lafayette. Following discussion, it was the consensus of the Board that a letter be sent to the City of Lafayette advising them that a separate green waste collection program will be included in the rate analysis for consideration by the District's Board as a way of meeting the AB 939 requirements and that, if approved, this will result in an increase in rates. The letter should solicit Lafayette's comments on the program. At 4:42 p.m., President Boneysteele declared a recess, reconvening at the hour of 4:51 p.m., with all parties present as previously designated. 2) 1'1 04 Mr. Dolan announced that the District is currently advertising for bids for the Sludge Stabilization Project which will enable the District to process 92 b. c. d. None 1. 199 sludge for a limited period of time in the event an incinerator is down. The engineer's estimate for the project is $580,000. 3) The District is advertising for bids for a Sliplining Project between Near Court in Walnut Creek and Highway 680. The engineer's estimate for the work is $49,000. 4) The District is advertising for bids for the Cured-in-Place Pipe Lining Project at four locations in Walnut Creek and Orinda. The engineer's estimate is $677,000. 5) Mr. Dolan announced that the District has been approached by Mojave Gas with a proposal for transportation of natural gas directly through their pipeline, as an alternative to PG&E. There is potential for savings. Staff is looking into the proposal and will keep the Board informed. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, announced that there is a movement among some sanitary districts to bring lawsuits to set aside the ad valorem tax shift that was part of the State budget agreement. Mr. Aim stated that he would keep the Board informed of any developments in this regard. SECRETARY OF THE DISTRICT None BOARD MEMBERS 1 ) Member Rainey reported that the Second Annual Fiscal Unity Conference will be held on Saturday, January 16, 1993. 2) The Board discussed the October 1, 1992 letter to CASA President John N. Wiper from the General Manager of South Tahoe Public Utility District Robert Baer, suggesting the consolidation of three statewide associations: the California Association of Sanitation Agencies (CAS A), the Association of California Water Agencies (ACWA), and the California Special Districts Association (CSDA). Concern was expressed that one organization would be less powerful or effective in influencing legislation and regulations than three organizations. 13. ANNOUNCEMENTS 14. CLOSED SESSION REAL ESTATE NEGOTIATIONS With respect to real estate negotiations, the closed session was held pursuant to Government Code Section 54956.8. The real property which the negotiations may concern is the District property at 1250 Spring brook Road, Walnut Creek. The District's negotiators may negotiate with Mr. Richard J. Murphy, District Director of Caltrans. 2. 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. 11 04 9,2 200 3. 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 has decided to initiate or is deciding whether to initiate litigation. At 5: 12 p.m., President Boneysteele declared the closed session to discuss real estate negotiations pursuant to Government Code Section 54956.8 and litigation pursuant to Government Code Sections 54956.9(b) and (c). At 6:22 p.m., President Boneysteele concluded the closed session and reconvened the meeting into open session. 15. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 1 6. ADJOURNMENT There being no further business to come before the Board, President Boneysteele adjourned the meeting at the hour of 6:23 p.m. President of the Board of Direct Central Contra Costa Sanitary' trict, County of Contra Costa, State of California COUNTERSIGNED: 11 04 92