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HomeMy WebLinkAboutBOARD MINUTES 12-03-92 209 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON DECEMBER 3, 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 December 3, 1992. President Boneysteele called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Clausen, Dalton, Rainey, Boneysteele ABSENT: Members: Starita Member Starita had indicated previously that he would be unable to attend this meeting and had requested that he be excused. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Clausen 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. The Agreement Relating to Real Property with Kenneth H. Crain, et ux, Job 165, Orinda area, 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. 92-091 was adopted to that effect. Motion approved on the following vote: AYES: Members: Clausen, Rainey, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Starita b. The contract work for Phase I of the Laboratory Facilities Improvement Project, DP 10077, was accepted and the filing of the Notice of Completion was authorized. Motion approved on the following vote: AYES: Members: Clausen, Rainey, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Starita c. The contract work for the Orinda/Moraga Pumping Stations Improvements Project, DP 4667, was accepted and the filing of the Notice of Completion was authorized. Motion approved on the following vote: 12 03 92 210 AYES: Members: Clausen, Rainey, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Starita d. A Medical Leave of Absence without Pay was authorized for Derhyl F. Houck, Maintenance Technician III, Mechanical, through May 17, 1993. Motion approved on the following vote: AYES: Members: Clausen, Rainey, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Starita 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 5. SOLID WASTE a. RECEIVE STAFF ANALYSES OF REFUSE COLLECTION RATE APPLICATIONS SUBMITTED BY VALLEY WASTE MANAGEMENT AND ORINDA-MORAGA DISPOSAL SERVICE. INC. AT A BOARD WORKSHOP President Boneysteele invited the two Directors-Elect to join the Board on the dias and participate in the workshop in all regards except voting. Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that the information presented will be in the form of a workshop and may be redundant to what is presented at the public hearing; but it has been the feeling of the Board that this information is best presented twice, allowing an opportunity to get more or additional information if needed for the Board's consideration at the public hearing. The Board Members have all received voluminous information and packets from Valley Waste Management and Orinda-Moraga Disposal Service, Inc. requesting rate increases. No rate increase application has been received from Pleasant Hill Bayshore Disposal. Mr. Dolan introduced Mr. Walter N. Funasaki, Finance Officer, who stated that the Board last set refuse collection rates for Valley Waste Management (Valley) and Orinda-Moraga Disposal Service, Inc. (Orinda-Moraga) effective July 1, 1992 through December 31, 1992. This mid-year adjustment was made to offset the Acme Interim Transfer Station mid-year 17.3 percent fee increase from $65.69 per ton to $77.07 per ton. Valley and Orinda-Moraga have filed timely applications for rate increases effective January 1, 1993 for the calendar year ending December 31, 1993. Pleasant Hill Bayshore Disposal did not submit a rate application. Mr. Funasaki stated that both the Valley and Orinda-Moraga applications are being submitted for initial consideration at this workshop and will be considered at the public hearings scheduled for December 17, 1992. Copies of the applications and staff analyses have been provided to the affected cities of Orinda and Lafayette and towns of Danville and Moraga, with requests that City and Town Council comments be provided for Board consideration at the public hearings. Mr. Funasaki reviewed the four issues common to both rate applications; namely, disposal expense, the Acme landfill closure cost assessment, uniform refuse collection rates, and the revenue and expense balancing account. Mr. Funasaki stated that disposal expense now represents the single most significant expense for refuse collectors operating in the County, surpassing driver and helper labor expense. Green waste from the Valley automated collection pilot program is processed by Waste Fibre Recovery at a cost of $9.90 per ton. The facility has recently notified Valley that it will not be able to take more green waste; therefore, green waste from the expanded automated collection program is being taken to the Acme Demonstration Compost Project at a cost of $55 per ton. On November 24, 1992, the County Board of Supervisors reduced the $77.07 per ton disposal fee at the Acme Interim Transfer Station 12 03 92 211 to $75.97 per ton effective November 1, 1992. The staff analyses were prepared on the existing $77.07 per ton fee; however, all charts used in today's workshop reflect the new lower fee. Contra Costa County fees comprise 20 percent of the transfer station fee and comprise $1.15 of the average single can rate of $19 per month. In setting the collection rates as of July 6, 1992, the Board of Directors was not satisfied that the County fees included in the landfill gate fee and the transfer station fee had been properly established by the County; therefore, the collection rates were set for 180 days on an interim basis, and the refuse collectors were directed to seek alternative disposal facilities. Mr. Funasaki stated that no Acme landfill closure cost assessment was included in the rate adjustment, as the Board of Directors has consistently declined to include closure costs in the rate-setting process. On December 5, 1991, a civil suit was filed by Acme against the County, franchising jurisdictions, refuse collectors, and commercial companies to close the hazardous waste section of the landfill. Legal expenses related to the lawsuit were claimed by Valley and Orinda-Moraga in 1992, and major legal expenses are projected for 1993 by both companies. In the 1990-1991 rate year, the Board implemented a phased restructuring to achieve uniform residential refuse collection rates over a three-year phased period. The rates in the 1992 rate year were based on the third and final year of the phased program. However, as the expanded automated collection program included a rate reduction on a per household basis, the final conversion to uniform rates will be achieved in this rate- setting process. A shortfall in residential revenues has resulted from large numbers of customers having decreased the number of refuse containers they use. . The revenue and expense balancing account was implemented during the last rate-setting process. The difference between the actual and forecasted operating income is carried forward in setting the following year's rates, final adjustment is made to the balancing account based on audited financial statements in the year following. The balancing account provides a disincentive to the collector to overestimate expenses and underestimate revenues. Significant shortfalls in revenues in 1992 have produced large deficits in the balancing accounts for both refuse collectors. The application of the entire deficit to the 1 993 revenue requirement will require a major increase in collection rates. Application of the balancing account deficit over two years to the 1993 and 1994 revenue requirements was presented for Board consideration. Mr. Funasaki proceeded to review the Valley Waste Management rate application. Valley applied for a 22.91 percent increase in its service area, excluding the City of Lafayette, and a 45.05 percent increase in the City of Lafayette. As the City of Lafayette declined to participate in the automated residential curbside collection program implemented in the rest of the Valley service area, it was necessary to establish the City as a separate rate- setting entity with a separate service level and schedule of collection rates. Mr. Funasaki stated that Valley has claimed $275,000 in intercompany charges in the 1993 rate application. In the past, the Board has required a clear indication of the economic benefits to be gained by the company for these charges. While it appears to District staff that some level would be appropriate, staff is unable to determine the amount as no supporting documentation for intercompany charges exists. Therefore, there is a rate calculation with intercompany charges of $275,000 included as an allowable expense, and also a calculation in which intercompany charges are excluded from allowable expenses. Mr. Funasaki briefly reviewed the study with regard to intercompany charges conducted by the Alameda County Joint Rate Review Committee and joined by the District and the Cities of San Ramon and Walnut Creek. The study, performed by Price Waterhouse, was done to assess the reasonableness of intercompany charges included in the rate application of another subsidiary of Waste Management, Inc. Price Waterhouse concluded that while all information necessary to perform a complete review was not provided, on the basis of the information available, some portion (approximately 75 percent) of the intercompany charges were supportable. Mr. Funasaki stated that 7,400 residential customers participated in the automated residential curbside collection pilot program in Danville in 1 991 . The program was extremely successful. As a result, the Board authorized full-scale implementation in the rest of the service area in 1992. However, the Lafayette City Council determined that Lafayette would not participate in the automated collection program. A feature of that program was the separate collection of green waste. Green waste was to be taken to the 12 03 92 212 Waste Fibre Recovery facility at $9.90 per ton; however, the volume the facility will accept is now limited to the volume of the original pilot program. Therefore, the green waste from the expanded automated program is being taken to the Acme Demonstration Compost Project at $55 per ton. An issue before the Board is whether nonautomated separate green waste collection should be implemented in the City of Lafayette. In response to a question from Member Clausen, Mr. Funasaki stated that AB 939 requires that waste be reduced by 25 percent by 1995, and clearly green waste must be included to achieve that goal. Mr. Funasaki stated that Valley has requested that the drop box rates be restructured since disposal expense now exceed the drop box rate for certain container sizes. Valley has requested that the allowable profit be calculated by return to the operating ratio method previously used by the District. Mr. Funasaki reviewed the rate adjustment calculation, the computation of allowable profit, and the Capital Use Charge calculation for the service area, excluding the City of Lafayette, and for the City of Lafayette. Mr. Funasaki reviewed the staff recommendations based on the analysis of the Valley Waste Management rate application as follows: 10) 11 ) 1 ) Direct that continued efforts be made by Valley to obtain alternative disposal sites. 2) If a mid-year transfer station fee adjustment occurs in 1993, consider whether a mid-year collection rate adjustment should be made. 3) Authorize collection of legal expense related to the Acme lawsuit on an impound basis. 4) Determine whether the balancing account should be fully applied in 1993, or applied equally in 1 993 and 1994. 5) Determine whether the intercompany charges of $275,000 should be allowed, or disallowed, in whole or in part. 6) Consider the company's request to index intercompany charges using an annual inflation rate. 7) Implement nonautomated separate green waste collection in the City of Lafayette. 8) Deny the request to restructure drop box rates, and authorize increasing drop box rates by the across-the-board increase. 9) Retain the present allowable profit calculation methodology, denying the request to return to the operating ratio methodology. Determine whether the Quality of Service modification factor of 1.00 is appropriate. Determine whether the Cost of Service modification factor of 1.00 is appropriate. Discussion followed concerning pass-through of the fees charged by the County, coordination of legal counsels' strategies with regard to the Acme lawsuit, the Acme Demonstration Compost Project, restructuring of the drop box rates, the Acme Landfill closure and post closure agreements and costs, and definition and ratio of Valley management salaries and positions as a percentage of forecasted operating expenses. There being no further Questions or comments concerning the staff presentation of the Valley Waste Management rate application, President Boneysteele declared a recess at the hour of 4:33 p.m., reconvening at the hour of 4:42 p.m. with all parties present as previously designated. 12 03 92 213 Mr. Ronald Proto, General Manager of Valley Waste Management, addressed the Board, complimenting Mr. Funasaki on the District staff analysis. Mr. Proto made the following recommendations and requests: 1 ) That the District revert to the operating ratio method of calculating profit because as commercial revenues drop because of increased recycling, the number of customer equivalent units drop. Mr. Proto stated that he understands the Board's concern that the operating ratio method provides no incentive to control costs; however, Valley has reduced the number of routes and employees while adding additional services in order to operate as efficiently as possible. Valley has kept controllable costs (excluding disposal costs, franchise fees, legal fees, and recycling programs) under the cost of inflation since 1987. In fixing the profit level, Mr. Proto requested that the Board keep in mind the level of service provided by Valley, the additional programs added to meet AB 939 goals, and the fact that this has been done while keeping controllable costs under the rate of inflation. Mr. Dolan, General Manager-Chief Engineer, stated that Mr. Proto's point is a valid one. When the new rate-setting approach was established, a dollar cost was used as the basis for making the profitability comparison. Mr. Dolan stated that if a creative alternative such as a baseline profit per residential customer could be established, staff would be open to discussing it. Mr. Proto requested further: 2) That the Corporate Services and Development, and Management Fees (intercompany charges) of $275,000 be allowed and that the Board seriously consider making $275,000 the base amount, and indexing that amount for inflation in future years. 3) That a 52-week average interest rate be used for computation of the Capital Use Charge rather than one point in time as used by the District. Member Clausen suggested that Valley's attorneys review the purchase of Valley by Waste Management, Inc. in an effort to get out of the Acme lawsuit, indicating that if only the assets were purchased, it does not seem that Valley would have any liability. Member Clausen stated that would weigh heavily in his evaluation of pass-through of legal fees. Without commenting on the merits of Mr. Proto's presentation, President Boneysteele stated that it was an exceedingly able presentation. President Boneysteele complimented the company on the Quality of the presentations and the enthusiasm with which they go about doing their jobs. At this time, Mr. Funasaki proceeded to the staff analysis of the unique issues relating to the Orinda-Moraga Disposal Service, Inc. rate application, including automated residential curbside collection, request to reduce the frequency of seasonal cleanups, and affiliated entities transactions. Mr. Funasaki indicated that Orinda-Moraga has requested a 29.33 percent across-the-board rate increase. Mr. Funasaki stated that Orinda-Moraga has proposed implementation of an automated residential curbside collection program, which would require $1 .3 million would be needed to acquire automated vehicles and containers. Annual expense reductions in excess of $400,000 are projected by the company. However, the current franchise agreement with Orinda-Moraga expires in February 1996 and the depreciation period for the capital assets would be very short. Mr. Funasaki stated that Orinda-Moraga has requested that the frequency of seasonal cleanups be reduced from three to two times a year. A similar request was made in 1991. At that time, the request was denied. Mr. Funasaki stated that there were a number of transactions during the year between Orinda-Moraga and other companies owned by the current stockholders either singly or jointly. These transactions were regarded by District staff as being inappropriately recorded on the books of Orinda-Moraga. District staff has adjusted certain of the 12 03 92 214 transactions for rate-setting purposes and excluded them from allowable expenses, and obtained assurance that advances for which there were no definite time periods for repayment have since been repaid. Mr. Funasaki reviewed the rate adjustment calculation, the allowable profit computation, and the Capital Use Charge computation for Orinda-Moraga. Mr. Funasaki summarized the staff recommendations with regard to the Orinda-Moraga rate application as follows: 1 ) Direct that continued efforts be made by Orinda-Moraga to obtain alternative disposal sites. 2) If a mid-year transfer station fee adjustment occurs in 1993, consider whether a mid-year collection rate adjustment should be made. 3) Authorize collection of legal expense related to the Acme lawsuit on an impound basis. 4) Determine whether the balancing account should be fully applied in 1993, or applied equally in 1993 and 1994. 5) Defer consideration of automated residential curbside collection until the March 1, 1994 notification as to whether the franchise agreement will be extended for five years beyond the February 28, 1996 termination date. 6) Deny request to reduce frequency of seasonal cleanups and direct that the current frequency of three seasonal cleanups be continued. 7) Direct that the company's operations and payments be separately maintained from those of affiliated entities. 8) Determine whether the Quality of Service modification factor of 1 .00 is appropriate. 9) Determine whether the Cost of Service modification factor of 1 .00 is appropriate. Discussion followed concerning management compensation, salaries and performance bonuses, and the $90,000 consulting payment to the former owner. Mr. Funasaki stated that the consulting payment is regarded as part of the acquisition and thus was disallowed for rate-setting purposes, but was included in the audited financial statements. Mr. Funasaki stated further that the key man life insurance premiums on Messrs. Lomow and Sliepka were disallowed. In response to a question from Member Clausen, Mr. Funasaki stated that the large balance in the balancing account is due primarily to reduction in revenues. There being no further Questions from the Board, President Boneysteele expressed his appreciation to Mr. Funasaki for the quality of his analyses and the advice he gives to the Board, and complimented him on these contributions to the community and the ratepayers. President Boneysteele noted receipt of a letter from Mr. Randall Kiser, attorney representing Orinda-Moraga Disposal Service, Inc. Mr. John Matheny, Controller of Orinda-Moraga Disposal Service, Inc., stated that revenues are down significantly, between $400,000 and $500,000. Payroll and disposal fees have been paid but many bills are outstanding. The requested rate increase is very large due mainly to the lack of revenues and not the failure of Orinda-Moraga to control expenditures. Mr. Matheny stated the Orinda-Moraga rates for backyard service rival some of the rates charged by other companies for curbside service. Mr. Matheny requested that the Board consider the following: 1 ) 2) 12 03 That the balancing account deficit be applied in 1 993 since these funds are needed to pay vendors. That legal fees to defend the Acme lawsuit be passed through in the rates. 92 215 3) That lease expense for equipment, and not simply depreciation, be considered allowable expenses. 4) That one of the seasonal cleanups be eliminated saving $ .39 per customer per month. 5) That automated curbside collection be implemented saving $1 .21 per customer per month. 6) That mandatory curbside collection be implemented for all customers, except senior citizens and the disabled, saving $1.77 per customer per month. 7) That recyclables be collected bi-weekly, rather than weekly, saving $.62 per customer per month. 8) That assistance be given in protecting the Orinda-Moraga franchise area with regard to drop boxes. Mr. Matheny stated that Orinda-Moraga will hold a public meeting on December 7, 1992 at the Recycling Center at 1287 School Street in Moraga to try to explain the high collection rates to customers. Discussion followed concerning the level of legal fees to defend the Acme lawsuit and the previously proposed green waste bag system for composting. Mr. Matheny stated that Orinda-Moraga would investigate whether the option is viable and, if it is, submit a proposal in writing to the District. President Boneysteele thanked Mr. Matheny for his presentation. Board discussion followed concerning the high level of disposal costs, County fees, and costs to comply with environmental regulations and the need to clearly and concisely present this information to the public. There being no further comments, President Boneysteele concluded the workshop to receive the staff analyses on the refuse collection rate applications of Valley Waste Management and Orinda-Moraga Disposal Service, Inc. At 6:28 p.m., President Boneysteele declared a recess, reconvening at the hour of 6:35 p.m., with all parties present as previously designated. a. 6. ENGINEERING AUTHORIZE EXECUTION OF AN AGREEMENT WITH JAMES M. MONTGOMERY CONSULTING ENGINEERS FOR DESIGN OF THE WOODLAND WAY SEWER REPLACEMENT PROJECT. DP 4785 Following explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Clausen and seconded by Member Rainey, that the General Manager-Chief Engineer be authorized to execute a cost reimbursement agreement with a cost ceiling of $97,000 with James M. Montgomery Engineers for design of the Woodland Way Sewer Replacement Project, DP 4785. There being no objection, the motion was approved with Member Starita being absent. b. AUTHORIZE STAFF TO PROCEED WITH PHASE I OF THE TREATMENT PLANT ELECTRICAL AS-BUlL TS PROJECT. DP 20139 Mr. Dolan, General Manager-Chief Engineer, stated that work on this project has been progressing for some time. Staff is now ready to proceed with having this phase of the project jobbed out. It was moved by Member Rainey and seconded by Member Dalton, that staff be authorized to proceed with Phase I of the Treatment Plant Electrical As-Builts Project, DP 20139. There being no objection, the motion was approved with Member Starita being absent. 12 03 92 216 c. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AGREEMENTS FOR $505.000 WITH HTE AND FOR $190.000 WITH IBM FOR EQUIPMENT. SOFTWARE AND SERVICES RELATED TO IMPLEMENTATION OF THE DISTRICT'S COMPUTER SYSTEMS UPGRADE PROJECT. DP 20082 Mr. David R. Williams, Planning Division Manager, stated that the ADDS Mentor mini- computer used by the District for the past ten years is nearing the end of its useful life. Recognizing this, the Management Information System (MIS) Committee was formed to coordinate long-range planning of management information systems for the District. The Warner Group, a computer specialist, was hired to assist in this process. A Request for Proposals (RFP) was prepared and eight proposals were received. The proposals were evaluated and three vendors were interviewed, references were checked, and demonstrations were conducted. Functionality of software, costs, reliability, support, future enhancements, and expendability were considered. It is recommended that agreements be executed with HTE and IBM. Following discussion, it was moved by Member Dalton and seconded by Member Clausen, that the General Manager-Chief Engineer be authorized to execute agreements with HTE and IBM in the amount of $505,000 and $190,000 respectively for computer equipment, software, and services in connection with the District Management Information System Upgrade Project, DP 20082. Motion approved on the following roll call vote: AYES: Members: Dalton, Clausen, Rainey NOES: Members: None ABSENT: Members: Starita ABSTAIN: Members: Boneysteele It was noted for the record that President Boneysteele abstained from voting since pursuant to Section 2.20.060 of the District Code he has reported a value of IBM stock in excess of $10,000 and less than $100,000. a. 7. COLLECTION SYSTEM AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH GEZ ARCHITEÇTS-ENGINEERS FOR $151 .000 FOR THE DESIGN OF THE CSO FACILITY RELOCATION PROJECT. DP 30023 Mr. John A. Larson, Collection System Operations (CSO) Department Manager, stated that the District has been working with Caltrans since 1988 on the 1680/SR24 Interchange Project. The District will have the use of the property in Question until October 31, 1993, at which time the District will lose the property to Caltrans. Mr. Larson described the property and indicated access to the vehicle and equipment shop and maneuvering room will be lost. It is proposed that the vehicle and equipment shop be relocated to the Duca property previously purchased by the District and that the old District office building be remodeled primarily to provide locker room space for the increasing number of women working at CSO. It is proposed that construction be started in March 1 993. The work should be completed in approximately eight months. The estimated cost of the project is $1.9 million. Following discussion, it was moved by Member Clausen and seconded by Member Rainey, that the General Manager-Chief Engineer be authorized to execute a professional services agreement with GEZ Architects-Engineers for $151,000 for the design of the CSO Facility Relocation Project, DP 30023. Motion approved on the following roll call vote: AYES: Members: Clausen, Rainey, Dalton, Boneysteele NOES: Members: None ABSENT: Members: Starita 12 03 92 217 8. LEGAL/LITIGA TION DENY CLAIM FOR INDEMNITY FROM SOUTHERN PACIFIC a. It was moved by Member Clausen and seconded by Member Dalton, that the claim for indemnity from Southern Pacific be denied and referred to staff for further action as necessary. There being no objection, the motion was approved with Member Starita being absent. a. 9. CORRESPONDENCE NOTE RECEIPT OF LETTER FROM NANCY GORE. MAYOR OF THE CITY OF CONCORD. CONCERNING THE PROPOSED TRI-VALLEY WASTEWATER AUTHORITY (TWA) PROJECT: CONSIDER DRAFT RESPONSE Receipt of the letter from Nancy Gore, Mayor of the City of Concord, concerning the proposed Tri-Valley Wastewater Authority (TWA) Project was noted and the revised draft response was approved. 10. APPROVAL OF MINUTES MINUTES OF NOVEMBER 19. 1992 a. It was moved by Member Clausen and seconded by Member Dalton, that the minutes of November 19, 1992, be approved with the following amendment: On page 8, in the tenth sentence of the first paragraph, the words "company, General des Eaux" were added following the word "French." There being no objection, the above motion was approved with Member Starita being absent and Member Rainey abstaining because she was not present at the meeting of November 19, 1992. 11. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED DECEMBER 3. 1992 a. Member Dalton, member of the Budget and Finance Committee, stated that he and President Boneysteele reviewed the expenditures and found them to be satisfactory. It was moved by Member Dalton and seconded by Member Rainey, that the Expenditure List dated December 3, 1992, including Running Expense Check Nos. 71942-72128, Sewer Construction Check Nos. 11773-11806, and Payroll Check Nos. 29511-29804, be approved as recommended. There being no objection, the motion was approved with Member Starita being absent. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 13. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, stated that the Local Agency Formation Commission (LAFCO) has sent a letter to the District requesting input on a review which they are doing concerning their sphere of influence (SOl) policy. Mr. Dolan described the District's limited SOl policy and related annexation policy. Mr. Dolan proposed that a draft response to LAFCO be prepared based on past District policy as follows: a) The District is a utility, not a planning agency, whose job is to serve planned for growth as long as such service is economically and technically feasible and does not create an 12 03 92 218 added financial burden for the District's existing customers or threaten the District's ability to comply with regulations. b) The District is here to serve growth approved by authorized planning authority. The District does not wish to be used by either the county or the cities to either force or deny development. The District would be concerned that a requirement for conjunctive SOl changes could be used, for example, by a city to prevent service to a development being processed by the county. Without consideration of the merits of any such issue, the District does not believe that service by the District should be used by any other party to gain control when such control is not otherwise provided under existing law. If the Board concurs, Mr. Dolan stated that staff will draft a letter asking for the opportunity to express the District's concerns on such subjects as capacity, cost of service, regulatory compliance, and technical matters related to service to property within the proposed SOl, with the understanding that LAFCO would not proceed with boundary changes adding land to the District or its SOl that the District felt it could not or should not serve for utility reasons. Member Rainey stated that historically LAFCO has been opposed to the adoption of standards which would set criteria for changing SOl or agency boundaries. However, Solano County did adopt such standards and it has turned out to be a menu for litigation. With the Board's concurrence, Mr. Dolan agreed that language opposing adoption of standards would be included. 2) Mr. Dolan announced that the District has been requested to place Drug Abuse Resistance Education (DARE) license plate frames on District vehicles. The District Central Safety Committee has endorsed the proposal. The cost is $1 per license plate frame or $2 per vehicle. If the Board has no objection, staff would proceed. Following discussion, the Board endorsed the proposal. 3) Mr. Dolan announced that the District is currently advertising for a project to furnish and install a Total Hydrocarbon Emission Monitoring System on the incinerator stack. The engineer's estimate is $125,000. 4) Mr. Dolan announced that a sexual harassment training program was recently completed by all District employees with the exception of one or two who were unable to attend but will be attending off site training. The training was provided by the County Training Consortium. Early in 1993, cultural diversity training will be provided. The Board indicated that they wished to participate in such training programs in the future. Member Dalton requested that he be excused and left the meeting at the hour of 7:26 p.m. b. COUNSEL FOR THE DISTRICT None c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS None 12 03 92 219 14. ANNOUNCEMENTS President Boneysteele congratulated Directors-Elect Hockett and Menesini and extended his appreciation to the Board and staff for their efforts over the past 25 years. President Boneysteele stated further, as he has said in the past, that the District is one of the finest sanitary districts in the country. President Boneysteele received a standing ovation from the Board and staff. 1 5. CLOSED SESSION None 16. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 17. ADJOURNMENT There being no further business to come before the Board, President Boneysteele adjourned the meeting at the hour of 7:29 p.m. ~ þø;&i--L ~.~----. . President of the Board of Directors, (ßéntral Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Se re r of the Centra Contra COg Sanitary District, County of Contra Costa, State of California 12 03 92