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HomeMy WebLinkAboutBOARD MINUTES 02-07-91 17 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 7, 1 991 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 February 7, 1991. . President Clausen called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Boneysteele, Dalton, Carlson, Rainey, Clausen ABSENT: Members: None 2. PUBLIC COMMENTS Mr. Benjamin Bell, Instrument Technician, addressed the Board concerning working conditions and personnel matters. 3. BIDS AND AWARDS a. DECLARE ALL BIDS NON-RESPONSIVE. APPROVE THE USE OF NEGOTIATION, AND AUTHORIZE AWARD OF PURCHASE ORDER TO WESCO FOR FURNISHING OF TWO INDOOR MOTOR CONTROL CENTERS Mr. Roger J. Dolan, General Manager-Chief Engineer, asked that the Board declare all bids nonresponsive, authorize the use of negotiation, and authorize award to WESCO, the low bidder. All bidders on this job imposed their own conditions. The low bidder indicated a willingness to stand by the low bid and abide by the District's general conditions. Following discussion, it was moved by Member Carlson and seconded by Member Dalton, that all bids be declared nonresponsive to the bid request, that the use of negotiations be approved with WESCO, the low bidder, and that award of purchase order be authorized to WESCO in the amount of $51,649.39 (original bid price) for furnishing the indoor motor control centers. Motion unanimously approved on the following roll call vote: AYES: Members: Carlson, Dalton, Boneysteele, Rainey, Clausen NOES: Members: None ABSENT: Members: None 4. CONSENT CALENDAR It was moved by Member Rainey and seconded by Member Carlson, that the Consent. Calendar, Item a., be approved as recommended. a. The Board was advised of the close out of the Phase 1 B San Ramon Valley Interceptor Project, DP 24224. This item was presented for the Board's information. No action was taken. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None f)~ . ., '. .O~7 '" ". r 91 . ~ 18 5. ENGINEERING a. APPROVAL TO OVER EXPEND THE FY 1990-1991 ENGINEERING DEPARTMENT EDUCATION AND TRAINING BUDGET BY $11,640 Mr. Dolan, General Manager-Chief Engineer, stated that this item was discussed with the Board Personnel Committee and received their ~ndorsement. It was moved by Member Dalton and seconded by Member Boneysteele, that the Engineering Department be authorized to overexpend the FY 1990-1991 Technical Training, Conferences, and Meetings Account by $11,640. There being no objection, the motion was unanimously approved. b. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AMENDMENT WITH JOHN CAROLLO ENGINEERS TO DESIGN 1-680/SR-24 SEWER RELOCATIONS, PHASE 3. DP 4782 Mr. Dolan, General Manager-Chief Engineer, stated that President Clausen asked staff to check on the impact of the federal judge's decision on Caltrans. Caltrans has been temporarily enjoined from funding construction projects but not design work. The item before the Board is for design. By the time the 1-680/SR-24 Sewer Relocations Project proceeds to construction, the injunction against Caltrans should be cleared. If not, the project will be delayed at that time. President Clausen suggested that staff determine the cost of financing or fronting the money for Caltrans. Mr. Dolan indicated that staff will check into that and report back to the Board. The Board requested that staff determine if financing costs are reimbursable . as project costs. It was moved by Member Carlson and seconded by Member Boneysteele, that the General Manager-Chief Engineer be authorized to execute a cost-reimbursement contract with a cost ceiling of $111,135 with John Carollo Engineers to design Phase 3 of the 1-680/SR- 24 Sewer Relocation Project, DP 4782. There being no objection, the motion was unanimously approved. 6. TREATMENT PLANT a. AUTHORIZE EXECUTION OF AN AGREEMENT WITH CAMP, DRESSER AND McKEE, INC., TO PERFORM AN ELECTRICAL SYSTEM ANALYSIS. DP 10084. AND AUTHORIZE AN ALLOCATION OF $160,000 FROM THE TREATMENT PLANT CONTINGENCY ACCOUNT Mr. Dolan, General Manager-Chief Engineer, stated that new, large loads will soon be placed on the Treatment Plant's electrical systems. The proposed analysis will evaluate the future safety and reliability of the electrical distribution system. It was moved by Member Carlson and seconded by Member Boneysteele,. that the General Manager-Chief Engineer be authorized to execute a Professional Services Agreement with a cost ceiling of $140,000 with Camp, Dresser and McKee, Inc. for the Electrical System Analysis, DP 10084, and that allocation of $160,000 be authorized from the Treatment Plant Program Contingency Account for this project. There being no objection, the motion was unanimously approved. 7. APPROVAL OF MINUTES a. MINUTES OF DECEMBER 20, 1990 b. MINUTES OF JANUARY 3, 1991 c. MINUTES OF JANUARY 23, 1991 Following discussion, it was moved by Member Rainey and seconded by Member Dalton, that the minutes of December 20, 1990, January 3, 1991, and January 23, 1991, be approved as presented. There being no objection, the motion was unanimously approved. 1 . ! '.' 02 . ., 07 9:~ì 19 8. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED FEBRUARY 7, 1991 Member Rainey, member of the Budget and Finance Committee, stated that she and President Clausen reviewed the expenditures and found them to be satisfactory. It was moved by Member Rainey and seconded by President Clausen, that the Expenditure List dated February 7, 1991, including Self-Insurance Check Nos. 100495- 100500, Running Expense Check Nos. 57756-58176, Sewer Construction Check Nos. 9200-9267, and Payroll Check Nos. 22592-23173, be approved as recommended. Following discussion, the motion was unanimously approved. 9. BUDGET AND FINANCE RECEIVE THE 1 990-1991 OPERATIONS AND MAINTENANCE BUDGET REVIEW FOR THE SIX MONTHS ENDED DECEMBER 31, 1 990 a. Mr. Dolan, General Manager-Chief Engineer, stated that a position paper showing the results of the first six months of operations has been presented to the Board. As other agencies around the county have seen, there has been a decrease in revenue in construction related industries. Late last fall, staff began consideration of reallocation and reassignment of work to keep employees involved in developer-built facilities as productive as possible. Some employees have been relocated from the construction area into other areas where demand is increasing rather than decreasing. Mr. Dolan stated further that after the results of the Six Month O&M Review.were received, the managers made substantial cuts to bring expenses more in line with these projections in reve':lues. Mr. Dolan introduced Mr. Walter N. Funasaki, Finance Officer, who presented a comparison of actual and budgeted O&M revenues and expenses for the six months ended December 31, 1990, and projected revenues and expenses for the fiscal year ending June 30, 1991. Actual O&M revenues were $256,000 less than budget, representing a 2.1 percent unfavorable variance. Actual expenses were $761,000 less than budget, representing a 6.0 percent favorable variance. The actual deficit for the six month period was $651, 000. This is $505,000 less than the budgeted deficit. Mr. Funasaki stated that based on actual revenues and expenses for the first six months, projections were made for the full year. Revenues are projected to be $579,000 less than budget at June 30, 1991, representing a 2.4 percent unfavorable variance. Projected expenses are anticipated to be $517,000 less than budget, representing a 2.0 percent favorable variance. Mr. Funasaki reported that as a result of the projected operating deficit of $956,000, O&M reserves at the end of the fiscal year are projected to be $1,851,000. Board discussion followed concerning the reasons for decreases in revenues, the impact of water conservation on revenues, septic tank dumping and grease interceptor revenues, and staffing for capital projects. President Clausen suggested that staff pursue having grease interceptor inspection integrated into the restaurant inspections conducted by the County Health Department and the environmental health agency. President Clausen indicated that he feels projected revenues are overly optimistic, but he was glad to see staff was making a real effort to reduce expenses. Mr. Dolan stated that some projects which staff believes ultimately should be done because they are in the best interest of the District to do are being deferred because of the downturn. In other cases, maintenance activities such as painting are being put off. The message is that if Central San is to keep maintaining and repairing itself, there will be an impact on expenses next year. However, there are program changes coming next year that will have much greater budgetary implications. Staff is trying to match revenues to expenses as much as possible but there will be impacts next fiscal year. ' President Clausen thanked Mr. Funasaki for his report and noted that the 1990-1 991 Operations and Maintenance Budget Review for the Six Months ended December 31, 1990, was duly received. 0~2 O~7 9.1 20 b. COUNTY INVOICE OF $111,542.89 FOR COLLECTION OF AD VALOREM TAX REVENUE Mr. Dolan, General Manager-Chief Engineer, stated that he and Board Member Rainey met with Supervisor Schroder on February 6, 1991. Supervisor Schroder indicated that a bill was being prepared that would overturn Senate Bill 2557 (Chapter 466 of 1990) which requires payment for collection of ad valorem tax revenue. Supervisor Schroder stated further that it has been suggested that Central San provide an interest free loan to cities and school districts who are subject to charges and fees under SB 2557. Mr. Dolan recommended that payment of this invoice be deferred until these issues are resolved. President Clausen stated that the County has the statutory authority to make the charge and the District should pay the invoice under protest indicating that an immediate reimbursement with interest would be expected if the bill is repealed. Following further discussion, the matter was referred to staff for recommendation at the March 7, 1 991 Board meeting. c. RECEIVE DECEMBER 1990 FINANCIAL STATEMENTS Mr. Funasaki, Finance Officer, reported that the District's temporary investments were held in Treasury bills and notes, a short-term repurchase agreement, and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 6.85 percent to 9.41 percent. The latest interest rate at December 31, 1990, was 7.14 percent. The average yield for the LAIF account through December 1990 was 8.269 percent. In response to a question from Member Boneysteele, Mr. Funasaki described the circumstances of the repurchase agreement. Mr. Dolan reported that staff has pursued the issue of ownership of the District's investments. The investments have been held on the books under the ownership of Contra Costa County and it is the County's obligation to pay the District. Initially, the County was resistent to changing the ownership, but they have now agreed to the change. The cost to change the ownership will be $5,000 to $6,000. Mr. Dolan stated that he believes this is an acceptable expense, and Mr. Funasaki has been directed to instigate the change immediately. The Board concurred. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 11. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, reported that implementation of the automated transfer" POD" system demonstration project has been delayed because of the need of the Town of Danville to address concerns òf the community. Mr. Paul Morsen, Deputy General Manager, reported that he attended the Danville Town Council meeting at which the decision of the Planning Commission was appealed by Valley Waste Management. The Planning Commission has turned down the Tassajara Road transfer site for the demonstration project. Valley Waste Management was successful in their appeal and the site on Tassajara Road will be used for the demonstration project but will not be allowed for a permanent transfer site. Permanent sites must be found as part of the demonstration project. Literature and containers will be delivered to the residents in the demonstration area at the beginning of March 1 991 and collection will begin shortly thereafter. Mr. Morsen stated that the following will be considered during the demonstration project: . The efficiency, cost savings, and public acceptance of automated curbside collection. 02 Oq ,9.,,1 21 . Avoidance of transfer station costs. . Minimization of costs for yard waste and green waste collection. President Clausen stated that good support was received from the Danville Town Council, but he believes it will be very difficult to site permanent transfer points. Member Rainey suggested that the operation be videotaped with sound for use in evaluation of the demonstration both in Danville and other areas. Mr. Morsen indicated that he would discuss this with Valley Waste Management. He stated further that the Town of Danville requested that Valley Waste Management conduct a noise study as part of the demonstration. 2) Mr. Dolan reported that at a meeting on January 31, 1991, Ms. Sara Hoffman, the County Solid Waste Manager, informed the District of the County's intention to take over franchising in the unincorporated areas. The Board of Supervisors plans to introduce an ordinance in February and have it take effect as soon as possible thereafter. Ms. Hoffman indicated that the County does not intend to impose a franchise fee or collect money over and above the cost of solid waste management in the County. Mr. Dolan discussed the impacts of the County decision on the solid waste customers the District now serves. Staff has been in contact with other sanitary districts, some of whom feel local control is very important. Mr. Dolan reviewed possible options open to the District including transferring the _franchising responsibility to the cities or to the Central Contra Costa Solid Waste Authority. Board discussion followed wherein Member Rainey indicated that the Board's Solid Waste Committee met to discuss this matter. The Committee recommended that District Counsel research the legal authority of the County to assume the franchising responsibility and that a meeting be scheduled with the staff of the four cities for whom the District franchises and the homeowners groups in the unincorporated areas to get their input. . , Following discussion, it was moved by Member Rainey and seconded by Member Dalton, that District Counsel research the legal authority of the County to assume solid waste franchising responsibility in the unincorporated areas, the staff meet with representatives of the four franchise cities and the homeowners groups in the unincorporated areas to obtain their input, and that staff advise the collectors of this matter. There being no objection, the motion was unanimously approved. 3) Mr. Dolan introduced Mr. David Williams, Engineering Division Manager, who reported the status of the request by the City of Lafayette that the District and City join together in a cooperative sewer/storm drain improvement project on Woodland Way in Lafayette. A ,sewer project has tentatively been scheduled in this area in the two-year timeframe. However, it is not clear whether the project will actually be done in this area since backyard easements are involved. Staff will contact the Superintendent of Public Works and the City Manager in Lafayette to see if it is possible from a technical standpoint to enter into a cooperative project. Staff will prepare a letter for the Board President's signature advising Lafayette Mayor Uilkema of the status of this matter. The Board concurred. 4) Mr. Dolan reported that the District has been approached by a developer who is interested in building a golf course and subdivision in Moraga. The developer recognizes that it will be impossible to find water for irrigation, and he wishes to have a reclamation facility provide the water. The District is in favor of water reclamation although there is practically no benefit to the District for a summertime water reclamation project. The peak wet weather flow storage which such a facility could provide might be useful to 0 ~ ,~~O 7: ,9 1 22 b. the District. Staff recognizes that the long standing policy of the District is to support water reclamation whenever possible. Staff will be working cooperatively with the developer but the project must be evaluated carefully. The developer, Clark Wallace and Associates, has hired Bryan and Murphy to begin investigations. Mr. Merle Gilliland, representing Clark Wallace and Associates, addressed the Board reporting his discussions with East Bay Municipal Utility District concerning a water reclamation project in Moraga. Mr. Gilliland stated that the proposed golf course and subdivision would need 200 to 250 acre feet of water per year. This project plus the needs of Moraga County Club, St. Mary's College, and Moraga Commons would total approximately 600 acre feet per year. Mr. Gilliland expressed interest in working with Central San on this water reclamation project. 5) Mr. Paul Morsen, Deputy General Manager, reported on the Lafayette City Council meeting at which designation of a recycling collector was discussed. With the assistance of Mr. Stephen Minton and Councilmember Avon Wilson, staff and Director Boneysteele were able to convince the City Council to rescind their previous action. The Lafayette City Council has now agreed to adopt a resolution designating the franchise collector as the recycler for the City. A resolution will be drafted and placed on the Consent Calendar of the next City Council meeting. 6) Mr. Dolan reported that the Town of Danville is making progress on the Town's corporation yard. At the time they award contract, the District has agreed to make payment to them of approximately $350,000 as the District's share of the project. It is expected that this expenditure will be made in the near future. 7) Mr. Dolan announced that he will be unable to attend the February 21, 1991 Board meeting because of his commitments as President Elect of the Water Pollution Control Federation. Mr. Dolan briefly reviewed the items he expects to be on that agenda. , . 8) Mr. Dolan announced that the District obtained a copy of a letter from Supervisor Torlakson to School Board Members, Parents, Mayors and City Council members in the east county area. In the letter, Supervisor Torlakson proposed that he investigate diverting sanitary district property taxes to other purposes since he feels those other purposes are of, higher priority than the sanitary districts' purposes. Mr. Dolan stated that unless the Board directs otherwise, staff would take no action at this time. The Board concurred. COUNSEL FOR THE DISTRICT Mr. Kenton L. Aim, Counsel for the District, announced that the complaint in the second J. Lewis & Son lawsuit has been dismissed. c. SECRETARY OF THE DISTRICT Ms. Joyce E. Murphy, Secretary of the District, distributed the Training and Conference Summary for the October-December 1990 period. d. BOARD MEMBERS 1 ) Member Rainey reported that the County has instituted a recycling program in the schools. Although the schools involved are not in the District's area, their efforts will contribute to source reduction in the County as a whole. Member Rainey reported that she received a list of variable can rates throughout the County. Staff has been asked to copy that list for interested Board and staff members. Messrs. Dolan and Morsen have been asked to investigate the mini-can service for possible use in the District's service area. 02 0 .7. ::':9 l' 23 2) President Clausen reported that Alameda County staff is now considering a Negative Declaration rather than a focused Environmental Impact Report (EIR) at the Altamont Landfill. If an EIR is required, the December 31, 1991 deadline will be missed for extension of the export agreement and Contra Costa County will have no place for its solid waste. . President Clausen reported that a meeting has been scheduled with the San, Joaquin County Board of Supervisors for February 19, 1991, to discuss a possible export agreement. 3) Member Boneysteele requested that the minutes reflect the Board's appreciation of the efforts of Messrs. Stephen Minton and John Tulley with regard to the designation of a recycler by the City of Lafayette and other issues that have come up in the past. The Board directed the Secretary of the District to draft letters to Messrs. Minton and Tulley, the City of Lafayette, and the Town of Danville thanking them for their support and cooperation. 12. ANNOUNCEMENTS None 13. CLOSED SESSION a. EXISTING LITIGATION The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The title, of the litigation was T.M. Road Boring versus Dalton Construction, Central Contra Costa Sanitary District, et ai, Contra Costa County Superior Court No. C89-04027. b. 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. The title of the litigation was not disclosed because to do so would jeopardize the Board's ability to conclude existing settlement negotiations to its advantage. At 5:35 p.m., President Clausen declared the closed session to discuss litigation pursuant to Government Code Sections 54956.9(a) and (b). At 5:58 p.m., President Clausen concluded the closed session and reconvened the meeting into open session. '- 14. ACTIONS RESULTING FROM DISCUSSION IN CLOSED SESSION The Board of Directors unanimously authorized settlement of the T.M. Road Boring versus Dalton Construction, Central Contra Costa Sanitary District, et al matter, Contra Costa County Superior Court No. C89-04027, with full settlement and releases from all parties in compensation for the District paying $50,000. The Board delegated to staff the authority to execute all documents to effectuate the settlement. ~O2 , ~ "07 "91 24 15. ADJOURNMENT There being no further business to come before the Board, President Clausen adjourned the meeting at the hour of 6 p.m. COUNTERSIGNED: S cr t y of the Central Con a Co a Sanitary District, County of Contra Costa, State of California 02 , . 01 ,.91