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HomeMy WebLinkAboutBOARD MINUTES 11-19-92 201 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON NOVEMBER 19, 1992 The District Board of the Central Contra Costa Sanitary District convened in a regular meeting at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 3 p.m. on November 19, 1992. President Boneysteele called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Clausen, Dalton, Boneysteele ABSENT: Members: Starita, Rainey Members Starita and Rainey had advised staff that they would be unable to attend this meeting and had requested that they be excused. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Clausen and seconded by Member Dalton, that the Consent Calendar, consisting of Items a. and b., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 92-090 accepting an easement at no cost to the District from David F. Sucher, et ux, Orinda area, Job 3518, Parcel 2, was adopted and recording was authorized. Motion approved on the following vote: AYES: Members: Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Starita, Rainey b. The request by Derhyl F. Houck, Maintenance Technician III, for an emergency withdrawal of $8,000 from the Deferred Compensation Plan was approved as recommended by the Deferred Compensation Plan Advisory Committee. Motion approved on the following vote: AYES: Members: Clausen, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Starita, Rainey 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 11 19 92 202 5. BIDS AND AWARDS REJECT ALL BIDS FOR FURNISHING ONE GAS TURBINE/GENERATOR AND SWITCH GEAR FOR THE COGENERATION PROJECT. BID REQUEST B0234T a. Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that two bids were received for this project. Both bidders Qualified their bids to the point that the Qualifications resulted in material variances. Staff has met with representatives of both bidders to discuss the major areas of noncompliance. It is hoped that acceptable revisions to the bid request can be worked out and the project rebid. It was moved by Member Dalton and seconded by Member Clausen, that all bids for Bid Request B0234T for furnishing one gas turbine/generator and switch gear for the Cogeneration Project be rejected. Motion approved on the following roll call vote: AYES: Members: Dalton, Clausen, Boneysteele NOES: Members: None ABSENT: Members: Starita, Rainey b. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO ALLOCATE $35.000 FROM THE TREATMENT PLANT CONTINGENCY ACÇPUNT AND AUTHORIZE AWARD OF CONTRACT TO CLASSIC ELECTRIC & DATA FOR THE DECHLORINATION TELEMETRY PROJECT. DP 10078 Mr. Dolan, General Manager-Chief Engineer, stated that the District had previously purchased the fiber optic cable which will be pulled as part of this project. Two remarkably close bids were received. Staff would recommend that award of contract be authorized to the low bidder, Classic Electric & Data. In response to a Question from Member Clausen, Mr. Charles W. Batts, Plant Operations Department Manager, stated that this project will replace the aging field micro processors. This work is necessary to interface with the Filter Plant instrumentation and controls, to improve process control, and to reduce process upsets. It was moved by Member Dalton and seconded by Member Clausen, that the General Manager-Chief Engineer, be authorized to allocate $35,000 from the Treatment Plant Program Contingency Account and that authorization be given to award the contract to Classic Electric & Data, the lowest responsible bidder, for $41,091 for the Dechlorination Telemetry Project, DP 10076. Motion approved on the following roll call vote: AYES: Members: Dalton, Clausen, Boneysteele NOES: Members: None ABSENT: Members: Starita, Rainey 6. SOLID WASTE RECEIVE PRESENTATION OF THE RESULTS OF THE 1992 CUSTOMER SATISFACTION SURVEY FOR SOLID WASTE RATEPAYERS a. Mr. Dolan, General Manager-Chief Engineer, stated that as part of the revised methodology now used for refuse collection rate setting, customer satisfaction with the service (measure of Quality) and the comparative cost of service are considered. These two Qualities are encompassed in the modification factors. Valley Waste Management has complained that a third factor, increasing level of service, should be reflected in the profit setting process. In particular, they object to receiving no profit for the commercial recycling program. The Board may consider that issue later. Today's presentation is intended to provide the Board with information related to customer satisfaction with the Quality of service. This customer satisfaction survey is one step in that process. 11 19 92 203 Mr. Dolan introduced Ms. Colleen Camicia, Public Information and Graphics Coordinator. Ms. Camicia stated that two firms, Marketing Connections, Inc. and Computers for Marketing, Inc., conducted the customer satisfaction survey. Ms. Camicia introduced Mr. Mike Blair, of Computers for Marketing, Inc. The objectives of the survey were: 1 ) To measure changes in customer satisfaction between 1991 and 1992; 2) To identify areas needing improvement; and 3) To measure interest in home composting. The survey was enclosed in a regular solid waste newsletter and went to 42, 168 households, all the households in the District's solid waste franchise area; and 4,148 responses were received. Ms. Camicia reviewed the methodology used in the customer satisfaction survey and summarized the findings for each franchisee as set forth in full in the report distributed to the Board and the franchisees. Discussion followed concerning the number and nature of complaints, the lack of understanding by the ratepayers as to what is recyclable and what is not, home composting and separate green waste collection, and the need for more public education particularly with regard to recycling, household hazardous waste disposal, and composting. President Boneysteele thanked Ms. Camicia for her presentation and indicated that the Garbage and Recycling Services Customer Satisfaction Survey results were duly received. a. 7. ADMINISTRATIVE AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO ALLOCATE $40.000 FROM THE GENERAL IMPROVEMENT PROGRAM CONTINGENCY ACCOUNT TO THE TELEPHONE COMMUNICATION SYSTEM PROJECT. DP 20141 Mr. Dolan, General Manager-Chief Engineer, stated that anyone who has called in or out during the last 12 months, is likely to be aware of the problem the District is having with the telephone system. A committee has been formed to assist in the process of identifying present and future system needs. It is proposed that an independent and qualified consultant be hired to assist in this process to ensure that the current and future needs are met and that the new system can stand the test of time. Following discussion, it was moved by Member Clausen and seconded by Member Dalton, that the General Manager-Chief Engineer be authorized to allocate $40,000 from the General Improvement Program Contingency Account for the Telephone Communication System Project, DP 20141, to employ the services of a consultant and to continue funding District force account labor. There being no objection, the motion was approved with Members Starita and Rainey being absent. 8. COLLECTION SYSTEM a. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH GEl ARCHITECTS-ENGINEERS FOR $151.000 FOR THE CSO FACILITY RELOCATION PROJECT. DP 30023 Mr. Dolan, General Manager-Chief Engineer, stated that Mr. John Larson, Collection System Operations Department Manager, has been reviewing the financial analysis relating to this project and has requested that this matter be held until certain figures can be confirmed. President Boneysteele indicated that the matter will be held pending further staff review. 11 19 92 204 9. CORRESPONDENCE a. NOTE RECEIPT OF LETTER FROM STATE SENATOR DAVID ROBERTI IN RESPONSE TO THE DISTRICT'S LETTER CONCERNING THE STATE'S TAKING OF AD VALOREM TAX REVENUE Receipt of the letter from State Senator David Roberti in response to the District's letter concerning the State's taking of ad valorem tax revenue, was noted. b. NOTE RECEIPT OF MEMORANDUM FROM MS. DONITA HOHENSTEIN. PERMITS & SERVICES TECHNICIAN. EXPRESSING APPRECIATION FOR THE DISTRICT'S WELLNESS PROGRAM Receipt of the memorandum from Ms. Donita Hohenstein, Permits & Services Technician, expressing appreciation for the District's Wellness Program, was noted. The Board indicated they were happy the program and facilities are being effectively utilized by the employees. Member Clausen indicated that direct correspondence from an employee such as this memorandum was particularly meaningful to him. c. NOTE RECEIPT OF LETTER FROM MR. DOUGLAS P. GRIFFITH. CONTROLLER OF VALLEY WASTE MANAGEMENT. NOTIFYING THE DISTRICT OF A CORPORATE MERGER AND SUBSEQUENT NAME CHANGE: REFER TO DISTRICT COUNSEL Receipt of the letter from Mr. Douglas P. Griffith, Controller of Valley Waste Management, notifying the District of a corporate merger and subsequent name change, was noted and referred to Counsel for the District for review and recommendation to the Board as appropriate. d. NOTE RECEIPT OF LETTER FROM MR. RICHARD A. NISHKIAN. ORINDA RESIDENT. OBJECTING TO ORINDA-MORAGA DISPOSAL SERVICE. INC. REQUESTED RATE INCREASE AND HIGH LANDFILL DISPOSAL FEES: CONSIDER DRAFT RESPONSE President Boneysteele stated that he acknowledged the letter from Mr. Richard A. Nishkian, Orinda resident, objecting to the Orinda-Moraga Disposal Service, Inc. requested rate increase and high landfill disposal fees. President Boneysteele recommended that the draft response be approved with minor modifications. The Board concurred. e. NOTE RECEIPT OF LETTER FROM MRS. W. RUSSELL LAFAYETTE RESIDENT. CONCERNING REFUSE COLLECTION RATES AND COLLECTION Receipt of the letter from Mrs. W. Russell, Lafayette resident, concerning refuse collection rates and collection, was noted. Staff was directed to respond that this will be considered in the refuse collection rate-setting process at the public hearing to be held on December 17, 1992. 10. APPROVAL OF MINUTES MINUTES OF NOVEMBER 4. 1992 a. Member Clausen noted that on page 6 of the minutes, staff was requested to prepare a separate report for the Board's consideration during the refuse collection rate-setting public hearing, on County fees collected both at the Acme Transfer Station and the Keller Canyon Landfill. Member Clausen requested that in addition, staff calculate the impact of those fees (percentage of the rate increase attributable to those fees) on the refuse collection rates. It was moved by Member Clausen and seconded by Member Dalton, that the minutes of November 4, 1992, be approved as presented. There being no objection, the motion was approved with Members Starita and Rainey being absent. 11 19 92 205 11. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED NOVEMBER 19. 1992 Member Dalton, member of the Budget and Finance Committee, stated that in the absence of Member Starita, he and President Boneysteele reviewed the expenditures and found them to be satisfactory. It was moved by Member Dalton and seconded by Member Clausen, that the Expenditure List dated November 19, 1992, including Self-Insurance Fund Check Nos. 100646- 100648, Running Expense Fund Check Nos. 71642-71941, and Sewer Construction Fund Check Nos. 11715-11772, be approved as recommended. There being no objection, the motion was approved with Members Starita and Rainey being absent. 12. BUDGET AND FINANCE RECEIVE OCTOBER 1992 FINANCIAL STATEMENTS a. Mr. Walter N. Funasaki, Finance Officer, reviewed the results of operations and maintenance expenses for October 1992, noting that expenditures were $218,000 less than budget, representing a 9.2 percent favorable variance. For the four months ended October 31, 1992, expenditures were $968,000 less than budget, representing a 10.2 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 7.564 percent. The latest interest rate at October 31, 1992, was 5.823 percent. The average yield for the LAIF account through September 30, 1992, was 4.76 percent. Member Clausen again expressed concern with regard to the anticipated level of revenues and questioned the large increase in counter collections. Mr. Funasaki stated that these payments were as a result of a number of large developments in the San Ramon area that were not anticipated at the time the budget was developed. Following discussion, President Boneysteele noted that the October 1992 Financial Statements were duly received. 13. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 14. REPORTS GENERAL MANAGER-CHIEF ENGINEER a. 1 ) Mr. Dolan, General Manager-Chief Engineer, introduced Ms. Cathryn Freitas, Personnel Officer, who stated that at a recent Board meeting the Board requested some information on the Employee Assistance Program (EAP). Ms. Freitas distributed a brochure on the EAP. In 1988, the Union asked to have an EAP and management brought the matter to the Board in labor negotiations. The labor/management committee formed to implement the EAP selected Occupational Health Service, Inc. to administer the program. Although the program is strictly confidential, positive feedback as to the value of the EAP has been volunteered. Ms. Freitas described the EAP and summarized the services provided. A quarterly statistical report is provided by Occupational Health Services, Inc. listing the numbers using the EAP and the types of services used. President Boneysteele thanked Ms. Freitas for the report. At 4:36 p.m., President Boneysteele declared a recess, reconvening at the hour of 4:43 p.m. with all parties present as previously designated. 11 19 92 206 11 ...- " 2) Mr. Dolan stated that the District was asked to participate in a technology exchange project by some U.S. professionals who had been working in Russia. Mr. James M. Kelly, Plant Operations Division Manager, participated in the project in St. Petersburg, Russia, where he was a member of a technical team which inspected and offered advice to the City Government on the operation and management of the water and wastewater system. The District sponsored the airfare and lodging. An application for reimbursement from a United States grant administered by the Water Environment Federation has been made but it is not yet known if those funds will be reimbursed. Mr. Dolan introduced Mr. Kelly who stated that in mid-September 1992 he was part of a technical team of three engineers, an attorney, and a financial consultant that went to St. Petersburg, Russia, to provide advice on water and wastewater operation and management and environmental issues. Mr. Kelly briefly described the historic, geographic, political, and economic situation in St. Petersburg. The Baltic Sea receives sewage from approximately 85 million people. One-third of that is raw sewage. The population of the City of St. Petersburg is approximately 5 million. Of that, about 2 million people discharge raw sewage directly into the canal system. The City is building large tunnels to collect wastewater. Mr. Kelly stated that the issues/problems identified by the technical team fell into three categories: institutional, water and wastewater, and pretreatment. Institutional issues/problems include the privatization of water and wastewater facilities, subsidized cost of service, lack of hard currency to help fund needed building, inadequate and unachievable laws and regulations, and the fact that fines are cheaper than corrective action. Water and wastewater issues/problems include that drinking water is not safe to drink, 40 percent of the sewage goes directly into canals, 35 percent of the municipal water supply is lost in the distribution system, there are no water meters, and there is a great deal of deferred maintenance. Pretreatment issues/problems include the high level of heavy metals in effluent/sludge, a staff of only 15 people to provide service to 1500 to 2000 industries, the lack of enforcement tools, and state ownership of most of the property and industries resulting in the lack of incentive for industries to protect and maintain the property. The technical team made an oral report of their findings and recommendations and is in the process of finalizing the written report. There is a joint venture, owned 47 percent by the French Company, General des Eaux, and 53 percent by the City of St. Petersburg, which is proposing to operate the water and wastewater system. The findings and recommendations made by the technical team include third party review of the proposal including analysis of the proposed technology and actions taken by the joint venture. The team recommended retention of rate-setting authority and responsibility by the City of St. Petersburg, use of Russian labor as much as possible in upcoming projects, the need for more work in the area of prioritization and timing of the solutions, revision of the laws, the need to secure hard currency to help pay for needed facilities, and assistance in the area of operations and maintenance. President Boneysteele thanked Mr. Kelly for his interesting and informative report. 3) Mr. Walter N. Funasaki, Finance Officer, reviewed the annual payments made to Contra Costa County through the Acme Transfer Station and the Keller Canyon Landfill. In 1993, based on 323,000 tons, the figure in the rate application currently before the Board of Supervisors, Contra Costa County will receive $2,846,000 from Keller Canyon Landfill and $856,000 from the Acme Interim Transfer Station. A more recent report prepared by Ms. Sara Hoffman, of Contra Costa County, assumes that additional tonnage being landfilled at Acme Landfill will go through the Acme Interim Transfer Station to Keller Canyon Landfill. Based on this revised figure of 450,000 tons, Contra Costa County will receive $4,103,000 from Keller 19 92 207 Canyon Landfill and $1,193,000 from the Acme Interim Transfer Station for a total of $5.3 million in 1993. President Boneysteele thanked Mr. Funasaki for the report. Mr. Dolan stated that as requested by Member Clausen, this report will be supplemented to include a calculation of the impact of these fees, excluding property tax, on the refuse collection rates of the collectors franchised by the District. b. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, stated that the Board will recall one of the issues previously discussed is the substantial requests included in the refuse collection rate applications for increased legal fees resulting from the defense of the Acme Landfill superfund case. This matter has been reviewed from a legal standpoint. In that regard, Public Utilities Commission (PUC) procedures and guidelines were reviewed with regard to pass through of legal fees relating to clean up and hazardous waste issues; the action of the Alameda County Joint Rate Review Committee was considered with regard to a similar issue; non-PUC law in California relating to rate making was reviewed; and prior positions with regard to rate setting taken by the Central Contra Costa Sanitary District were reviewed. Mr. Aim stated that the conclusion he reached is that there is no California law which would require the Board to categorically pass through these kinds of expenses in the rates. It was concluded that the PUC law does not apply based on case law concerning local governments' regulation of franchisees such as a cable television. The Court decisions hold that the Court should look to the contract documents and contract law other than the PUC law. That is, the prevailing concern should be the doctrine of good faith and fair dealing with regard to the contract, rather than the standards concerning a reasonable rate of return found in the PUC law. Mr. Aim stated that there is no specific standard regarding pass through of legal fees, especially hazardous waste legal fees, in the setting of contractual public agency rate setting. Mr. Aim stated that there are other issues and facts that should be considered in terms of determining what is fair and reasonable in this setting. Those include: 1 ) The non-negligent allegations here are not based on fault or wrong doing but rather on strict liability. 2) The unique setting here would require the ratepayer to pay for the share of both the "generators" and the "transporters" if all the fees are passed through. 3) The purchase agreements of both the current franchisees may require the prior owners to bear this liability. Mr. Aim recommended that the Board take into account what is in fact fair and reasonable and operate in good faith in the context of the intent of the District's franchise agreement. Mr. Aim stated that he believes that the fees that are requested, reduced by any auditing or accounting disallowances deemed appropriate, be included in the rates; but that the monies collected be held in an impound account similar to what is being done with closure costs in the City of Walnut Creek. It would then be appropriate for the franchisees to attempt to justify that these liabilities for legal fees are in fact their liabilities and not the liabilities of the former owners. Then the Board would consider the issue of what portion, if any, of the legal fees for the "transporter" should be borne by the ratepayers as opposed to the for-profit hauler. President Boneysteele thanked Mr. Aim for his report. 11 19 92 208 c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1 ) 2) 3) Member Clausen reported that the Central Contra Costa Solid Waste Authority has, for the time being, abandoned the idea of hiring a full-time administrative manager because of the change in circumstances relating to a publicly-owned transfer station. The Authority now plans to hire a part- time administrative manager. Member Clausen reported that a new element, the Non-Disposal Facilities Element, is now required for the County-Wide Integrated Waste Management Plan. This removes the siting criteria for everything except landfills. President Boneysteele reported on the November 1992 California Association of Sanitation Agencies (CASA) meeting. A tour of Irvine Ranch Water District and reclaimed water facility was conducted. Other topics of interest included socially responsible investment policies, expenditure control budgeting, and an integrated employees program. Ms. Bobbie Larson, formerly of Union Sanitary District, has been hired as the new regulatory person for CASA. Mr. Aim, Counsel for the District, reported that at the request of Central Contra Costa Sanitary District, legislation has been proposed to clean up what is required with regard to signature of contracts and delegation of authority to staff in that regard. 15. ANNOUNCEMENTS Mr. Aim, Counsel for the District, announced that he will be out of town and unable to attend the December 3, 1992 Board meeting. None None 16. CLOSED SESSION 17. ACTIONS RESULTING FROM DISCUSSION IN CLOSED SESSION 18. ADJOURNMENT There being no further business to come before the Board, President Boneysteele adjourned the meeting at the hour of 6: 16 p.m. PreSident f the Board of Directors, C I ontra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: c et ry of the Centra Co ra a Sanitary District, County of Contra Costa, State of California 11 19 92