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HomeMy WebLinkAboutBOARD MINUTES 06-27-91 105 MINUTES OF THE ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE 27, 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 3:00 p.m. on June 27, 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 had advised staff that she would be late for the meeting. Member Rainey arrived at the hour of 3: 18 p.m. 2. PUBLIC COMMENTS \ Mr. Marvin R. Lindorf, a consulting engineer, stated that he recently learned that Member Carlson may be resigning from the Board and indicated that he would be interested in being considered as a candidate for that position when it becomes available. President Clausen thanked Mr. Lindorf for his interest. 3. HEARINGS a. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON. A PROPOSED ORDINANCE TO AMEND ORDINANCE NO. 169 TO REVISE THE SCHEDULE OF FACILITIES CAPACITY FEES Mr. Roger J. Dolan, General Manager-Chief Engineer, introduced Mr. Jarred Miyamoto- Mills, Senior Engineer, who stated that in 1988 the Board of Directors directed staff to study the capital improvement fee system. Ordinance No. 169, adopting the Facilities Capacity Fee Schedule, was adopted effective July 1, 1989. The ordinance anticipated that it would be necessary from time to time to adjust the fees to cover escalating costs. Two years have expired since the effective date of Ordinance No. 169 and staff has tracked the costs. A fee analysis was done in the Capital Improvement Plan approved in April 1991. Based on that fee analysis, it is recommended that the Facilities Capacity Fees be increased by 2.1 percent, equal to the change in the Enaineerin9 News Record Bay Area Construction Cost Index for calendar year 1990. Mr. Miyamoto-Mills stated that in addition to adjusting the fees, there are a number of additional classifications and uses that staff recommends be added to the Facilities Capacity Fee Schedule. Over the past two years, sufficient information has been obtained to establish fees for these uses. At 3: 17 p.m., President Clausen opened the public hearing to receive comments on the proposed ordinance revising the Schedule of Facilities Capacity Fees. There being no comments, the public hearing was closed. Member Rainey entered the meeting at the hour of 3:18 p.m. Following discussion of certain user groups and the residential unit equivalence factors, it was moved by Member Carlson and seconded by Member Dalton, that Ordinance No. 178 be adopted, amending Chapter 6.12 of the District Code to revise the Schedule of Facilities Capacity Fees as recommended. Motion unanimously approved on the following vote: 06 27 91 106 AYES: Members: Carlson, Dalton, Boneysteele, Rainey, Clausen NOES: Members: None ABSENT: Members: None Member Carlson commended staff on the excellent job done in preparing the documentation and fee analysis on which the ordinance is based. Mr. Dolan stated that staff is aware of a number of factors that will increase costs to the District in the future including the Headworks Project. It is proposed that no action be taken on those potential increases until those cost figures are final. However, next year it may be necessary to do more than simply adjust for inflation. Noting the arrival of Mr. Jerry Lucey, the District's labor counsel, Mr. Dolan requested that the closed session be taken out of order. The Board concurred. 10. CLOSED SESSION a. LABOR RELATIONS With respect to labor relations, the closed session was held pursuant to Government Code Section 54957.6, to meet with designated representatives prior to and during consultations and discussions with the representatives of employee organizations regarding the salaries, salary schedules or compensation paid in the form of fringe benefits of employees in order to review the Board's position and instruct its designated representatives. b. PERSONNEL MATTERS The closed session was held to discuss personnel matters pursuant to Government Code Section 54957. c. 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 identified because to do so would jeopardize the Board's ability to conclude existing settlement negotiations to its advantage. At 3:20 p.m., President Clausen declared the closed session to discuss labor relations pursuant to Government Code Section 54957.6, personnel matters pursuant to Government Code Section 54957, and litigation pursuant to Government Code Section 54956.9(b)' At 3:59 p.m., .President Clausen concluded the closed session and reconvened the meeting into op~n session. 11 . ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None At this time, President Clausen reverted to the order of the agenda. 4. CONSENT CALENDAR It was moved by Member Rainey and seconded by Member Dalton, that the Consent Calendar, consisting of Items a. through c., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 91-042 accepting work and Offers of Dedication from Jerry Loving Architects Benefit Plan, Job 4790, Parcel 2, was adopted and -recording was authorized. 06 27 91 107 Motion approved on the following vote: AYES: Members: Rainey, Dalton, Boneysteele, Clausen NOES: Members: None ABSENT: Members: None ABSTAIN: Members:. Carlson It was noted for the record, that Member Carlson abstained from voting on this matter because he has or has had a business relationship with Mr. Jerry Loving. b. Authorization was given for P.A. 91-6 (Martinez) and P.A. 91-7 (Walnut Creek) to be included in a future formal annexation to the District. Motion unanimously approved on the following vote: AYES: Membérs: Rainey, Dalton, Boneysteele, Carlson, Clausen NOES: Members: None ABSENT: Members: None c. The Board was advised of the close out of 37 Capital Improvement Projects. This item was presented for the Board's information only. No action was taken. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 5. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED JUNE 27, 1991 Presid.ent Clausen member of the Budget and Finance Committee stated that Member Rainey was unable to attend the committee meeting to review the expenditures and requested that Member Boneysteele take her place. President Clausen stated that he and Member Boneysteele reviewed the expenditures and found them to be satisfactory. It was moved by Member Boneysteele and seconded by Member Clausen, that the Expenditure List dated June 27, 1991, including Running Expense Fund Check Nos. 60963-61248 and Sewer Construction Fund Check Nos. 9764-9816, be approved as recommended. There being no objection, the motion was unanimously approved. Member Rainey thanked Member Boneysteele for his assistance. 6. BUDGET AND FINANCE a. RECEIVE MAY 1 991 FINANCIAL STATEMENTS Mr. Walter N. Funasaki, Finance Officer, reviewed the results of operations and maintenance expenses for the month of May 1991, noting that actual expenses were $75,000 less than budget, representing a 3.6 percent favorable variance. For the 11 months ended May 31, 1991, actual expenses were $1, 1 51 ,000 less than budget, representing a 5.0 percent favorable variance. Mr. Funasaki reported that the District's temporary investments were held in Treasury bills and notes and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 5.90 percent to 8.726 percent, with the latest interest rate being 6.2 percent. The average yield for the LAIF account through May 1991, was 7.374 percent. Mr. Funasaki stated that at a previous Board Meeting, Member Boneysteele had inquired regarding the commercial paper carried with Discover Credit Corporation. Discover Credit Corporation is a wholly owned subsidiary of Sears Roebuck and Company. Mr. Funasaki 06 27 91 108 06 reported that Discover Credit Corporation uses the money to fund short-term needs of subsidiaries of Sears Roebuck and Company. Both Moody's and Standard & Poors provide Discover Credit Corporation's commercial paper with the highest rating. Mr. Funasaki reported that Ms. Kathleen Brown, Treasurer of the State of California, has advised all LAIF participants who may be concerned about the State of California budget problems, that there is a State Government Code that specifically excludes LAIF funds from any empoundments or seizures from any government officiaL Ms. Brown has stated that she will ensure that that Code is carried out. Mr. Munawar Husain, Associate Engineer, reported on the Sludge Blending Project completed in May 1991. The project was very successful. It was completed three and one-half months early and came in under budget. Mr. Husain showed slides of the work on the Sludge Blending Project. President Clausen thanked Messrs. Funasaki and Husain for their presentations and noted that the May 1991 Financial Statements were duly received. b. APPROVE A BOARD RESOLUTION TO ADOPT THE 1991-1 992 PERSONNEL EQUIPMENT, CAPITAL IMPROVEMENT, OPERATÎÒNS AND MAINTENANCE, AND SELF-INSURANCE FUND BUDGETS AS COMPRISING THE 1991-1992 DISTRICT BUDGET President Clausen stated that he preferred the budgets/ be adopted by individual resolutions since they are reviewed and approved individually. It was moved by Member Carlson and seconded by Member Dalton, that Resolution No. 91-043 be adopted, adopting the 1991-1 992 Personnel, Equipment, Capital Improvement, Operations and Maintenance, and Self-Insurance Fynd Budgets, as comprising the 1 991- 1992 Central Contra Costa Sanitary District Budget. Motion approved on the following roll call vote: AYES: Members: Carlson, Dalton, Boneysteele, Rainey NOES: Members: Clausen ABSENT: Members: None It was noted for the record that President Clausen voted no with regard to the Personnel, Equipment and Operations and Maintenance Budgets but yes on the Capital Improvement and Self-Insurance Fund Budgets. 7. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 8. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, reported that after reviewing the availability. of people and places to conduct the Solid Waste Workshop, arrangements were made with President Clausen's concurrence, for Friday afternoon, July 19, 1991, at the Pleasant Hill Community Center. A letter. has gone out to the Cities of Orinda, Moraga, Lafayette, Danville, San Ramon, Walnut Creek, the franchisees, the County, and the bodies which represent the unincorporated areas the District serves. The letter includes a description of the issues and recent occurrences pertaining to the issues. Mr. Dolan briefly discussed the issues and options available to the District. 2) Mr. Dolan reported that a letter from Member Dalton was sent to the Regional Recycling and Household Hazardous Waste Committee members advising that the committee would be disbanded if there were no objections, since the purpose of the committee had been achieved and continuing the committee would be a 27 91 109 duplication of the efforts of various other solid waste groups throughout the County. As set forth in the memorandum provided to the Board, some committee members expressed an interest in continuing the committee. Following discussion, it was the consensus of the Board that a letter be sent to the Regional Recycling and Household Hazardous Waste Committee members indicating that the committee will be reinstated pending formation of a County-wide recycling and household hazardous waste subcommittee of the Contra Costa Solid Waste Authority. 3) Mr. Dolan announced that the bids on the Headworks Project have been opened. The low bid exceeded the engineer's estimate by some $3 million. District staff has put together a value engineering team to conduct an analysis of the project to determine whether the project cost can be substantially cut by redesign. A position paper authorizing this work will be presented for Board consideration at the next Board meeting. 4) Mr. Dolan briefly described the solid waste rate-setting process and components of the staff analyses including the Capital Use Charge and profit calculations. 5) Mr. Dolan announced that the Internal Revenue Service has ruled that all employees must have a retirement program. The District's temporary employees are not covered at this time. It appears that the most favorable alternative both for the temporary employees and the District, would be to have 7.5 percent of the temporary employees' salaries put into a deferred compensation fund. Mr. Paul Morsen, Deputy General Manager, will be meeting with the temporary employees to discuss this issue. b. COUNSEL FOR THE DISTRICT None c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS None 9. ANNOUNCEMENTS None 10. CLOSED SESSION a. REAL ESTATE NEGOTIATIONS With respect to real estate negotiations, the closed session was held pursuant to Government Code Section 54956.8. The real property which the negotiations may concern is the permanent Acme transfer station site on the Acme Fill parcel. The District's negotiators may negotiate with representatives of Acme Fill Corporation including Mr. Boyd Olney. 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 identified because to do so would jeopardize the Board's ability to conclude existing settlement negotiations to its advantage. At 4:53 p.m., President Clausen declared the closed session to discuss real estate negotiations pursuant to Government Code Section 54956.8 and litigation pursuant to 06 27 91 110 Government Code Section 54956.9(bL At 5:30 p.m., President Clausen concluded the closed session and reconvened the meeting into open session. 11. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 12. ADJOURNMENT At 5:31 p.m., President Clausen adjourned the meeting to tour the Wellness Facility and Records Management Facility located in the Plant Operations Department Building. At 5:47 p.m., the Board and staff returned to the Board Room. There being no further business to come before the Board,. President Clausen adjourned the meeting at the hour of 5:47 p.m., to reconvene at 3:00 p.m. on Monday, July 8, 1991, for an Adjourned Regular Meeting. resid t of the Board of Directors, ral Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: a S~r t y of the Central ntra Costa Sanitary District, County of Contra Costa, State of California 06 27 91