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HomeMy WebLinkAboutBOARD MINUTES 05-30-91 86 MINUTES OF THE ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 30, 1991 The District Board of the Central Contra Costa Sanitary District convened in an Adjourned Regular Meeting at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 3:03 p.m. on May 30, 1991. President Clausen called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Boneysteele, Dalton, Carlson, Clausen ABSENT: Members: Rainey Member Rainey entered the meeting at the hour of 3:06 p.m. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR , It was moved by Member Boneysteele and seconded by Member Dalton, that the Consent Calendar, consisting of Items a. through f., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. The Agreement Relating to Real Property with Joseph P. Juetten, et ux, Job 1371, Parcels 34 and 35, Lafayette 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. 91-030 was adopted to that effect. Motion approved on the following vote: AYES: Members: Boneysteele, Dalton, Carlson, Clausen NOES: Members: None ABSENT: Members: Rainey b. Authorization was given for P.A. 91-2 (Orinda), P.A. 91-3 (Danville), and P.A. 91-4 (Alamo) to be included in a future formal annexation to the District. Motion approved on the following vote: AYES: Members: Boneysteele, Dalton, Carlson, Clausen NOES: Members: None ABSENT: Members: Rainey c. The contract work for the Sludge Blending Project (DP 20080) was accepted and the filing of the Notice of Completion was authorized. Motion approved on the following vote: AYES: Members: Boneysteele, Dalton, Carlson, Clausen NOES: Members: None ABSENT: Members: Rainey 0.5>3:0 -. ..91 d. June 27, 1991, at 3 p.m. was established as the date and time for a public hearing to receive comments on the Facilities Capacity Fee Schedule. Motion approved on the following vote: AYES: Members: Boneysteele, Dalton, Carlson, Clausen NOES: Members: None ABSENT: Members: Rainey e. The Medical Leave of Absence without pay for Benjamin Bell, Instrument Technician, was extended through July 19, 1991. Motion approved on the following vote: AYES: Members: Boneysteele, Dalton, Carlson, Clausen NOES: Members: None ABSENT: Members: Rainey f. The request of Gregory Walker for an emergency withdrawal of $5,000 from the Deferred Compensation Plan was approved as recommended by the Deferred Compensation Plan Advisory Committeß. Motion approved on the following vote: AYES: Members: Boneysteele, Dalton, Carlson, Clausen NOES: Members: None ABSENT: Members: Rainey CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 4. PERSONNEL a. ADOPT MEMORANDUM OF UNDERSTANDING (MOW WITH THE MANAGEMENT GROUP, EFFECTIVE MAY 1, 1991 THROUGH MAY 31, 1994 ' Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that representatives of the District have met and conferred with the Management Group. The proposed MOU before the Board has been reviewed with the Personnel Committee and is acceptable to the Management Group. Member Boneysteele, member of the Personnel Committee, stated that he met with Mr. Jerry Lucey and Ms. Joyce Murphy, the District's representatives, to discuss the proposed MOU and he would recommend its approval. It was moved by Member Boneysteele and seconded by Member Dalton, that the Memorandum of Understanding between the District and the Central Contra Costa Sanitary District Management Group, be adopted effective May 1, 1991 through May 31 , 1994. The motion was approved with Member Rainey being absent. , b. ADOPT MEMORANDUM OF UNDERSTANDING (MOW WITH THE INCUMBENT DEPUTY GENERAL MANAGER, EFFECTIVE MAY 1, 1991 THROUGH MAY 31, 1994 . Mr. Dolan, General Manager-Chief Engineer, stated that since Mr. Paul Morsen, Deputy General Manager, represents the District with regard to the other bargaining units, he has 0:5 {3,O 87 91 ,. 88 felt it was appropriate that he be represented separately. The proposed MOU for the Deputy General Manager is consistent with the Management Group MOU. Member Rainey entered the meeting at the hour of 3:06 p.m. It was moved by Member Boneysteele and seconded by Member Dalton, that the Memorandum of Understanding between the District and Mr. Paul Morsen, the incumbent Deputy General Manager, be adopted effective May 1, 1991 through May 31, 1994. There being no objection, the motion was unanimously approved. a. 5. CORRESPONDENCE NOTE RECEIPT OF LETTER FROM MR. PAT O'BRIEN, GENERAL MANAGER OF THE EAST BAY REGIONAL PARKS, CONCERNING PARKING EASEMENT FOR SHORELINE PARK AND THE COOPERATIVE RELATIONSHIP BETWEEN OUR DISTRICTS Mr. Dolan, General Manager-Chief Engineer, stated that the item of correspondence from the Regional Park District thanks Central San for our action on their behalf. Mr. Dolan expressed his hope that this signals a more cooperative relationship in the future. Following discussion of communications between East Bay Regional Park District and Central San and the status of the Bollinger Canyon work, receipt of the letter from Mr. Pat O'Brien, General Manager of the East Bay Regional Parks, concerning parking easement for Shoreline Park and the cooperative relationship between our districts, was noted. b. RECEIVE LETTER FROM MR. TOM POWERS, CHAIR OF THE CONTRA COSTA COUNTY BOARD OF SUPERVISORS, REQUESTING VERIFICATIONTHÀT NO AB 939 PLANNING COSTS ARE INCLUDED IN THE RATES FOR RESIDENTS OF UNINCORPORATED AREAS Mr. Dolan, General Manager-Chief Engineer, stated that the District had proposed a Memorandum of Understanding with Contra Costa County as a means of dealing with the AB 939 planning costs for the unincorporated areas. The County was not receptive to that proposal. To date little or no monies have been levied in the District's franchise fee for AB 939 planning costs; however, fees would begin during the coming year. The cities have been paying AB 939 planning costs through the tipping fees. Mr. Paul Morsen, Deputy General Manager, reported that some time ago he met with the County and indicated that the District would be willing to do the AB 939 planning for the unincorporated areas in Central County since there would be little or no additional cost. The County refused to have the District do the planning or to have the District cooperate with the County on their effort. Discussion followed concerning the feasibility of turning the solid waste franchises over to the County and the cities, and the status of the County ordinance to assume franchising responsibility. There being no further discussion, the letter from Mr. Tom Powers, Chair of the Contra Costa County Board of Supervisors, requesting verification that no AB 939 planning costs. are included in the rates for the residents of unincorporated areas was referred to staff for a recommended proposal and draft response. 6. APPROVAL OF MINUTES a. MINUTES OF REGULAR MEETING OF MAY 2, 1991 It was moved by Member Rainey and seconded by Member Dalton, that the minutes of May 2, 1991, be approved with the following correction: In the last paragraph on page 5~ the words IIfor alleged diesel fuel spill by a District contractor II were inserted following the word IIdamages." bf5 ;àö ;9,1 89 There being no objection, the motion was unanimously approved. b. MINUTES OF ADJOURNED REGULAR MEETING OF MAY 13, 1991 It was moved by Member Rainey and seconded by Member Dalton, that the minutes of the Adjourned Regular Meeting of May 13, 1991, be approved as presented. There being no objection, the motion was unanimously approved. 7. BUDGET AND FINANCE RECEIVE THE 1991-1992 OPERATIONS AND MAINTENANCE BUDGET AND SELF- INSURANCE FUND BUDGET FOR REVIEW a. Mr. Dolan, General Manager-Chief Engineer, stated that the Operations and Maintenance (O&M) Budget is the culmination of hundreds of hours, of staff work. The budget acts both as a plan and a control document throughout the year. Mr. Dolan introduced Mr. Walter N. Funasaki, Finance Officer, who presented the 1991- 1992 O&M Budget for initial review. Mr. Funasaki highlighted the budgeted revenues, expenditures, and reserves as detailed in the proposed 1991-1 992 O&M Budget previously distributed to the Board. Mr. Funasaki stated that for the last six years, the District has steadily and intentionally lowered the reserve level. In 1986-1987, the District lowered the Sewer Service Charge rate and maintained that lowered rate for a three-year period incurring deficits and thus lowering the reserves at the end of the fiscal year. In 1990-1 991, it is projected that the reserves will fall below the 10 percent prudent reserve level. In the 1991-1992 year, it will be necessary to follow a balanced budget concept. To calculate the projected revenues, a $150 Sewer Service Charge rate was used. There would still be a modest deficit at this rate. This represents a $14 increase or 10.3 percent over the current Sewer Service Charge rate. . Mr. Funasaki reviewed the 1990-1991 revenues, expenses, and projected deficit, noting that the projected deficit of $826,000 will be less than the budgeted deficit of $894,000. Mr. Funasaki stated that a correction will be made to the New Industry Permit Fees account to take into consideration East Bay Municipal Utility District fees for treating alum sludge. This change will be made in the budget document presented for consideration on June 13, 1991. At the six month O&M Budget review, it was projected that the deficit would be significantly greater than budgeted and the departments were directed to achieve savings in discretionary areas. That was done. Mr. Funasaki reviewed the results of those efforts. Mr. Funasaki presented a comparison of 1991-1992 budgeted revenues and expenses compared to 1990-1 991 budgeted revenues and expenses. In response to a question from President Clausen, Mr. Funasaki stated that depreciation expense has historically not been budgeted as an expense by public entities. In the O&M Budget and financial statements, the District does not present a depreciation expense as an operating expense. In the audited Financial Statements, depreciation expense is shown and ultimately charged to the Capital Fund reserves. Mr. Funasaki presented a comparison of budgeted employee benefits this year to last year. Member Boneysteele inquired as to the actuarial interest rate used by the County. Mr. Funasaki stated that he would provide that information at the next meeting. Messrs. Paul Morsen, Robert Baker, John Larson, and Charles Batts highlighted the changes in their respective departmental budgets and described new programs which will be implemented during the coming year. The cost and impression created by the District's annual report were discussed. Following discussion, Mr. Dolan stated that he would calendar a presentation on the District's annual report at the next Board Meeting. Discussion followed concerning Computer-Aided Drafting, computer maintenance activities and siphon maintenance. t05 ;30 ('9:.1 90 Mr. Funasaki presented a comparison of annual Sewer Service Charge rates with nearby agencies, and reviewed alternative Sewer Service Charge rates for the 1 991-1992 fiscal year, and the impact of those rates on the prudent reserve level. Mr. Funasaki reviewed the Self-Insurance Fund projected revenues, expenses, and reserves for 1990-1991 and the proposed Self-Insurance Fund Budget for 1991-1992. President Clausen stated that through the careful and conservative management of Mr. JackCampbell, Administrative Operations Manager, and through good fortune, the District has achieved its six-year goal of a $6 million reserve in the'Self-lnsurance Fund. There being no further questions or comments, President Clausen declared that the 1991- 1 992 O&M Budget and Self-Insurance Fund Budget were duly received and would be calendared for further consideration at the June 13, 1991 Board Meeting. None a. 4) 5) i 05 :; 3,0 8. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 9. REPORTS GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, announced that the District is currently advertising for the Headquarters, Office Building/Plant Operations Dep~rtment Office Space Remodeling Project. The engineer's estimate for the project is $1.3 million. 2) Mr. Dolan announced that debris which is discharged to the sewer from the County jail has continued to caUse operating problems 'at the Martinez pumping station. A bar screen was installed some time ago, but has not been maintained by the County. The jail has been put on a compliance schedule, but they have recently indicated that they do not have sufficient funds to install a grinder. Board and staff discussion followed concerning having the District purchase and install the grinder and assess the jail an incremental charge on the Sewer Service Charge rate to cover the costs. Mr. Dolan stated that staff would look into the suggestion. 3) Mr. Dolan introduced Mr. Paul Morsen, Deputy General Manager, who reported the status of the Automated Transfer (POD) Pilot Program in the Town of Danville. Difficulties have been encountered in finding permanent locations to transfer the PODs. Of the 30 sites considered by a committee formed by the Town, it appears that only one site is practical. One site is not sufficient to handle both residential waste and green waste. Mr. Morsen stated that Valley Waste Management has indicated they intend to continue their efforts to find permanent transfer sites although the outcome does not appear to be optimistic. Mr. Morsen stated that the situation is more optimistic for using the PODs for green waste. Even with only one site, it may be possible to implement a green waste program in the Town of Danville. Mr. Dolan announced that Messrs. Stephen Minton and Dennis Krentz, of the Solid Waste Committee of the City of Lafayette, have provided suggestions and input to District staff with regard to solid waste rate- setting for Valley Waste Management. Some deal with Board level policy issues and most are things that would be done in the normal course of rate-setting. Mr. Dolan distributed a memorandum summarizing the requests for information and suggestions made. Mr. Paul Morsen, Deputy General Manager, reported that he, Member Rainey, and Kent Aim met with County representatives to discuss issues related to franchising in the unincorporated areas. The County intends to move forward on June 4, 1991, with adoption of an ordinance that would provide for entering into Memoranda of .,9',1 b. 91 Understanding with the current franchising agencies; however, the County insists on control of the waste stream. Following a brief discussion of the implications to the District of the proposed County ordinance, Dolan stated that staff and District Counsel would provide a written presentation for consideration by the Board of Supervisors on June 4, 1991, indicating that the District appreciates the concessions made by the County but that the issue of co~trol of the waste stream is a deal breaker. 6) Mr. Dolan, General Manager-Chief Engineer, announced that the bids for the Headworks Project were opened on May 23, 1991. The engineer's estimate for the project was $24.7 million. The low bid was $27.8 million, approximately $3 million over the engineer's estimate. Staff is analyzing the spread. 7) Mr. Dolan announced that he has been asked to attend a Federation Conference in Sweden, creating a potential conflict with the August 15, 1991 Board Meeting. Staff will be looking at the August Board Meeting dates to ensure that there is no conflict with the August CAS A Conference and solid waste rate setting matters. 8) Mr. Dolan announced that the District received a letter from Contra Costa County regarding a $22 million lawsuit filed by Pacific Bell alleging overcollection of taxes. If Pacific Bell prevails, the cost to the District could be up to $224,000. COUNSEL FOR THE DISTRICT Mr. Kenton L. Aim, Counsel for the District, provided an update on CASA legislative activity. As the Board will recall, staff was directed to negotiate an agreement with Contra Costa County relating to investment of funds and Treasury functions. Efforts in that regard were not successful. One suggestion was that the District seek legislative relief. In the interim, the Committee on Local Government has introduced , a bill that provides that funds shall be deemed to be held in trust by the County Treasurer when a public entity or public officer act in a fiduciary capacity. It was the consensus of the Board, that Mr. Aim draft a letter of support for the bill. Mr. Aim reported that clarifying language has been proposed for the statute dealing with refund of Sewer Service Charges for services not received and the statute relating to mandatory arbitration for construction claims under $350,000. c. None d. 4) SECRETARY OF THE DISTRICT BOARD MEMBERS 1 ) Member Rainey reported that the Central Contra Costa Solid Waste Authority met on May 23, 1991, and staff is currently scheduling a special meeting. 2) Member Rainey reported that the AB 939 Task Force has formed a Project Managers Advisory Task Force to continue work on the Source Reduction and Recycling Elements of the AB 939 Plan. 3) President Clausen reported that the County Solid Waste Export Committee met on May 23, 1991, with San Joaquin County representatives. San Joaquin County representatives have indicated a willingness to provide space to Contra Costa County at the Tracy landfill site. An EIR will be required at an estimated cost of $300,000 to $400,000. Member Boneysteele reported on the May 1991 CASA Conference, stating that a great deal of information was presented including 0:5' 3' '-0"-"" 9'1':." . " , -, '" : 92 presentations on organizational issues of the 1990's, motivation of employees, coming changes to the Clean Water Act, consideration by Congress of a tax on the Sewer Service Charge, and possible changes to the CASA Bylaws recognizing the split between north/south, Directors/staff, and so on. 10. ANNOUNCEMENTS Member Carlson announced his resignation from the Board of Directors effective in August following the conclusion of rate-setting issues. Member Carlson stated that he plans to move the operation of his business to Brentwood and relocate his personal residence to Discovery Bay. Member Boneysteele stated, and the Board and staff agreed, that Member Carlson's resignation is a real loss to the District. It will be very difficult to replace Member Carlson. 11. CLOSED SESSION None 12. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 13. ADJOURNMENT There' being no further business to come before the Board, President Clausen adjourned the meeting at the hour of 6:28 p.m., to reconvene at 3:00 p.m. on Thursday, June 13, 1991, for an Adjourned Regular Meeting. --- f/o ..-, , .' -.- ./"."./ o-:~"'." /' ....-I¡. /~ /" , .~. ¡.' - ~ ~.--/..,o.,. / /" ;- ~ /;:~~~- /.¿-~'.~....~_..-.......- P;:~Sid~ of the Board of Directors, teñtral Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 0:5,' 3:0.~. 9'1;