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HomeMy WebLinkAboutBOARD MINUTES 07-08-91 111 MINUTES OF THE ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JULY 8,1991 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 p.m. on July 8, 1991. In the absence of President Clausen, President Pro Tem Dalton called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Boneysteele, Carlson, Rainey, Dalton ABSENT: Members: Clausen President Clausen had previously advised staff 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 Rainey and seconded by Member Boneysteele, that the Consent Calendar, consisting of Items a. through e., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Work and Offers of Dedication were accepted from Northgate Meadows Associates on Subdivision 7316, Job 4749, Parcel 1, recording was authorized, .and Resolution No. 91-044 was adopted to that effect. Motion approved on the following vote: AYES: Members: Rainey, Boneysteele, Carlson, Dalton NOES: Members: None ABSENT: Members: Clausen b. Work and Offers of Dedication were accepted from Homestead/Northcrest on Subdivision 7234, Job 4732, Parcel 2, recording was authorized, and Resolution No. 91-045 was adopted to that effect. Motion approved on the following vote: AYES: Members: Rainey, Boneysteele, Carlson, Dalton NOES: Members: None ABSENT: Members: Clausen c. Work and Offers of Dedication were accepted from Michael J. Calhoun, Job 4718, Parcel 4, recording was authorized, and Resolution No. 91-046 was adopted to that effect. Motion approved on the following vote: 0'( p~ 9~¡ .' . ¡ 112 . AYES: Members: Rainey, Boneysteele, Carlson, Dalton NOES: Members: None ABSENT: Members: Clausen d. The President of the District Board of Directors and the Secretary of the District were authorized to accept the Grant of Easement for District Project 24331, Parcel 1, at a total cost to the District of $810, recording of said Grant,of Easement was authorized, and Resolution No. 91-047 was adopted to that effect. Motion approved on the following vote: " AYES: Members: Rainey, Boneysteele, Carlson, Dalton NOES: Mem,bers: None ABSENT: Members: Clausen e. The President of the Board of Directors and the Secretary of the District were authorized to accept the Grants of Easement for District Project No. 4294 in Lafayette, from John and Amanda Layng, William and Nancy Hansen, Judith B. Brown, and John and Betty Edwards, at a total cost to the District of $7,181, recording of said Grants of Easement was authorized, and Resolution Nos. 91-048. 91-049. 91-050. and 91-051 were adopted to that effect. Motion approved on the following vote: AYES: Members: Rainey, Boneysteele, Carlson, Dalton NOES: Members: None ABSENT: Members: Clausen CALL FOR REQUESTS, TO CONSIDER ITEMS OUT OF ORDER Mr. Roger J. Dolan, General Manager-Chief Engineer, requested that Item 6., Personnel, a. and b., be taken out of order to accommodate interested persons in the audience. The Board concurred. President Pro Tem Dalton proceeded to Item 6. 6. PERSONNEL a. ADOPT MEMORANDUM OF UNDERSTANDING (MOW WITH THE GENERAL EMPLOYEES GROUP EFFECTIVE JUNE 14. 1991 - APRIL 30, 1994 Mr. Dolan, General Manager-Chief Engineer, stated that a complete position paper was provided. A copy of the negotiated MOU was attached to the position paper. The MOU sets forth the agreement discussed with the Board at the last Board meeting in closed session. The agreement has been ratified by the General Employee Group. In response to a question from Member Carlson, Mr. Dolan stated that adoption of the MOU with the General Employee Group is contingent upon the agreement of the Management Support/Confidential Group and the Management Group to modify their respective MOU's relative to payment of the employee's share of the retirement contribution. Member Rainey stated that it has been a long negotiating session in good faith on both parts. It was moved by Member Rainey and seconded by Member Boneysteele, that the MOU between the District and the Central Contra. Costa Sanitary District Employees Association, Public Union, Local No.1, be adopted for the General Employee Group effective June 14, 1991 through April 30, 1994, conditional on the agreement of the Management Support/Confidential Group and Management Group to modify their respective MOU's. Motion approved on the following roll call vote: 0708 9tt 113 AYES: Members: Rainey, Boneysteele, Carlson, Dalton NOES: Members: None ABSENT: Members: Clausen Member Boneysteele stated that the contract was toughly negotiated. Both the District representatives and the employees conducted themselves in a very professional manner. Mr. Dolan introduced Ms. Anne Mueller, Local No.1 representative, and requested that she take back to the bargaining team the District's appreciation for a job well done. b. DENY APPEAL OF TERMINATION BY NICHOLAS JAMES (JIM) MAPLES, UTILITY WORKER. IN ACCORDANCE WITH ARBITRATOR'S RECOMMENDATION Mr. Dolan, General Manager-Chief Engineer, stated that the Board is familiar with this issue and that the Board has been provided with a copy of the arbitrator's recommendation. The arbitrator has recommended that the Board deny the appeal of termination of Nicholas James (Jim) Maples. Ms. Meredith Bradford addressed the Board on behalf of Mr. Maples. Ms. Bradford asked that the Board make an independent review of this matter rather than adopting the recommendation of the arbitrator. Ms. Bradford described portions of the conversation . and circumstances leading to the termination of Mr. Maples and asked that the Board read the testimony contained in the transcript. In response to a question from Member Boneysteele, Mr. Gerald R. Lucey, the District's labor counsel, stated that the arbitrator, Mr. Francis Richard Walsh, Esq., was selected pursuant to the process set forth in the collective bargaining agreement between the Central Contra Costa Sanitary District Employees' Association, Public Employees' Union, Local No.1 and the District. Mr. Lucey reviewed Mr. Walsh's experience and qualifications and stated that Mr. Walsh was mutually selected by Local No.1 and the District with regard to a previous arbitration. Member Rainey stated that dismissal is a very serious matter and is difficult and unpleasant for all parties. This matter has been given the full attention of the Board of Directors and management. It was moved by Member Rainey and seconded by Member Boneysteele, that the appeal of termination of Mr. Nicholas James (Jim) Maples, Utility Worker, be denied and dismissed as the final action of the District in accordance with the arbitrator's recommendation. Member Boneysteele stated that he seconded the motion based on the qualifications and experience of the arbitrator, the fact that the arbitrator heard the testimony and observed the witnesses and their demeanor, and the fact that nothing in Ms. Bradford's presentation contradicted the arbitrator's opinion. There being no further discussion, President Pro Tem Dalton called for a roll call vote on the above motion to deny the appeal of termination of Mr. Maples in accordance with the arbitrator's recommendation as the final action of the District. The motion was approved on the following roll call vote: AYES: Members: Rainey, Boneysteele, Carlson, Dalton NOES: Members: None ABSENT: Members: Clausen At this time, President Pro Tem Dalton reverted to the order of the agenda. 4. SOLID WASTE a. PRESENTATION BY WOODWARD-CLYDE CONSULTANTS ON THE HOUSEHOLD HAZARDOUS WASTE/SOURCE CONTROL FACILITY 07. 08 ,'. . '. !' '. ",' 9~ i \ ~ 114 Mr. Paul Morsen, Deputy General Manager, stated that as the Board is aware, the District is engaged in siting a Household Hazardous Waste/Source Control Facility to meet the goals of AB 939, to comply with Environmental Protection Agency requirements to divert household hazardous waste from the sewer system, and to provide the public with a proper means of disposal of these wastes. Woodward-Clyde Consultants were hired to assist with this effort. Mr. Morsen introduced Messrs. Dan Weaver and Pat Lucia, of Woodward-Clyde Consultants. Mr. Weaver presented an overview of the effort to site a Household Hazardous Waste/ Source Control Facility. The West County Solid Waste Authority has expressed an interest in sharing a facility. It is recommended that a fullhousèhold hazardous waste service incorporating small quantity commercial generator services, a mobile facility with stationary hub storage, and a permanent facility with full-time operation and waste storage up to 90 days be sited. Mr. Weaver discussed the schedule and tasks for the implementation of the recommended alternative. Use of the facility will be free for householders but there will be a cost for small generators. Discussion followed concerning the possibility that the District's role in solid waste may change in the future, public acceptance of a mobile household hazardous waste facility, and coordinating efforts to avoid redundant facilities and double payment by some residents. Mr. Dolan stated that these are fundamental issues. After Board concurrence is received for the general concept, staff will work with the cities to address these issues. At that time, the cities will be asked to cooperate by providing assistance with labor either using volunteers or city staff. President Pro Tem Dalton thanked Mr. Weaver for his presentation. b. RECEIVE STAFF ANALYSES OF APPLICATIONS FOR REFUSE COLLECTION RATE INCREASES SUBMITTED BY VALLEY WASTE MANAGEMENT AND ORINDA- MORAGA DISPOSAL SERVICE. INC. AT A BOARD WORKSHOP Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Walter N. Funasaki, Finance Officer, who stated that Valley Waste Management has requested a 24.62 percent rate increase and Orinda-Moraga Dispo,sal Service, Inc. has requested a 16.73 percent rate increase. Pleasant Hill Bay Shore Disposal did not submit a rate application. Mr. Funasaki stated that the rate increase applications are presented for initial review at this workshop and will be the subject of public hearings on July 18, 1991. The applications and staff analyses have been submitted to the affected cities. and their comments have been requested for the Board's consideration at the July 18, 1991 public hearings. Mr. Funasaki reviewed the common issues affecting both rate applications; namely, the Acme Landfill closure and post-closure assessments and the significant and rapid increases in disposal fees. Mr. Funasaki stated that it is likely that the Acme Transfer Station fee will be increased during the 1991-1992 rate-setting period. Mr. Funasaki provided a brief overview of the rate-setting methodology adopted last year using a Capital Use Charge and computing the allowable profit per customer. It is recommended . that the profit per customer of $11.87 determined during the 1990-1991 rate-setting process be considered as the base year. It is proposed that the allowable profit be modified by two factors which consider the quality of service and the cost of service. The customer satisfaction survey results presented to the Board at the May 13, 1991 Board meeting should. be the basis for the quality of service modification factor. Twenty- one other jurisdictions with similar service levels in the greater Bay Area were contacted to determine the comparative ranking of the franchised refuse collectors based on the single can rate and the percentage increase in that rate over the last three years. Rates were adjusted for differences in service levels and differences in topography in the areas. The cost comparative ranking was used to develop the cost of service modification factor. In response to a question from Member Carlson, Mr. Funasaki stated that no adjustment was made for differences in disposal costs. Mr. Dolan stated that, in his opinion, no adjustment should be made for disposal costs since those costs are paid to related entities. Mr. Funasaki stated. that because of the uncertainties that are inherent in the solid waste field, precision in forecasting revenues and expenses cannot be expected. A balancing account has been included in the staff analyses as discussed with the Board last year. 07 0;8 .""'. . .,.'. 91 115 It is intended to carry forward any differences between forecasted and actual operating income. It is believed that this will be a disincentive to overestimating expenses and underestimating revenues. During the 1990-1991 fiscal year, Valley Waste Management achieved operating income which was $123,000 higher than forecasted and Orinda- Moraga Disposal Service achieved operating income which was $174,000 higher than forecasted. Mr. Funasaki stated that last year, collection rates were restructured to a uniform basis for residential collection rates in a three-year phased program. The 1991-1992 rates will be computed on the basis of the second year of the phased program. Mr. Funasaki turned to the staff analysis of the Valley Waste Management refuse collection rate application. Three options for calculating the Valley Waste Management rate adjustment were presented: 1) including intercompany charges, 2) excluding intercompany charges, and 3) including intercompany charges and closure and post- closure costs. Mr. Funasaki stated that it is not appropriate to assess intercompany charges on the basis of revenue. The appropriate level of intercompany charges should be considered that would compensate Valley Waste Management for services rendered by the parent company but for which supporting' accounting records are not a'vailable. The Valley Waste Management Capital Use Charge for 1990-1991 is significant at $354,000. Large additions were made in 1990-1991 and large additions are forecasted for 1 991-1992. Staff has reviewed the additions made in 1 990-1991 and verified that they are recorded in the accounting records of the company but no physical inventory was made. The Board must determine whether the level of capital is appropriate. Mr. Funasaki reviewed the computation of allowable profit for Valley Waste Management, net of Capital Use Charge, which results in $9.59 per residential customer equivalent unit. Mr. Funasaki summarized the staff recommendation for consideration by the Board in deciding these issues as follows: 1 ) Defer consideration of the closure and post-closure cost assessment of $408,000 until the County implements the assessment program. 2) Consider the appropriate level of intercompany charges. 3) Determine if the level of capital additions is appropriate or provide guidance on the appropriate level for computing the Capital Use Charge. 4) Consider a mid-year request for rate adjustment if a transfer station disposal fee increase occurs in 1991-1992. 5) Determine quality of service modification factor. 6) Determine cost of service modification factor. At this time, Mr. Funasaki turned to the staff analysis of the Orinda-Moraga Disposal Service, Inc. rate application. Mr. Funasaki presented the rate adjustment calculation both including and excluding closure and post-closure costs and reviewed the Capital Use Charge calculation, the allowable profit computation, and the phase-in of the uniform rate structure. Mr. Funasaki reviewed the status of issues from the rate-setting process last year including the environmental contingency reserve of $150,000, the route 'audit for $30,000, the software modification for a billing system of $7,000, and the corporate identification program for $20,000. Mr. Funasaki summarized the staff recommendations for consideration by the Board in deciding the issues relating to the Orinda-Moraga Disposal Service, Inc. rate application as follows: 3) 1 ) Defer consideration of the closure and post-closure cost assessment of $147,000 until the County implements the assessment program. 2) Consider a mid-year request for rate adjustment if a transfer station disposal fee increase occurs in 1991-1992. Replace truck lease expense of $168,000 with depreciation expense of $118,000 and a Capital Use Charge of $49,000 for a total of $167,000. ~O'? ~O;8 '~9!L 116 4) Disallow consultant fees of $106,000. 5) Disallow projected payments to Safety Fleet Service, Inc. of $126,000 in 1990-1991 and $139,000 in 1991-1992. 6) Disallow $36,800 annual life insurance premiums on the lives of both stockholders. 7) Determine quality of service modification factor. 8) Determine cost of service modification factor. Discussion followed with regard to the balancing account, the cost of service modification factor, adjustment of the cost of service modification factor to take into consideration disposal costs, and elimination of profit on disposal fees. Member Carlson requested that staff provide a graph for consideratipn at the July 18, 1991, public hearing eliminating disposal fees from consideration in the cost of service modification factor. Mr. Funasaki stated that he would try to gather that information. Mr. Dolan recommended that the refuse collection companies be held accountable for disposal charges and that they be considered in the cost of service modification factor. Mr. James Landa, of Valley Waste Management, addressed the Board stating that projected revenues were used at the time the rate application was prepared. Actual revenues are now available. An error was made in the rate application and actual revenues were $1,000 less than projected. That information was provided to Mr. Funasaki but no adjustment was made. Mr. Funasaki stated that the information was received too late to be incorporated into the process. Mr. Dolan stated that the balancing account will ultimately address this issue. There being no further questions or comments, President Pro Tem Dalton proceeded to the next item on the agenda. 5. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE A , , CONSULTANT AGREEMENT ,WITH CAMP DRESSER & McKEE INC. FOR VALUE ENGINEERING SERVICES ON THE HEADWORKS FACILITIES EXPANSION PROJECT, DP 20069 Mr. Dolan, General Manager-Chief Engineer, stated that this matter was discussed with the Board at the last meeting and a complete position paper has been provided. If there are no questions, staff would recommend that Camp Dresser & McKee Inc. be authorized to perform value engineering services for the Headworks Project. It was moved by Member Carlson and seconded by Member Rainey, that the General Manager-Chief Engineer be authorized to execute a Cost R,eimbursement Agreement with Camp Dresser & McKee, Inc., for value engineering services on the Headworks Project (DP 20069) with a cost ceiling of $58,182. There being no objection, the motion was approved with President Clausen being absent. 6. PERSONNEL a. ADOPT MEMORANDUM OF UNDERSTANDING (MOW WITH THE GENERAL EMPLOYEES GROUP EFFECTIVE JUNE 14. 1991 - APRIL 30. 1994 b. DENY APPEAL OF TERMINATION BY NICHOLAS JAMES (JIM) MAPLES, UTILITY WORKER. IN ACCORDANCE WITH ARBITRATOR'S RECOMMENDATION These items were taken out of order earlier in the agenda. 7. APPROVAL OF MINUTES a. MINUTES OF JUNE 13. 1991 ~O7 /() S -llt 117 It was moved by Member Boneysteele and seconded by Member Carlson, that the minutes of June 13, 1991, be approved as presented. There being no objection, the motion was approved with President Clausen being absent. a. 8. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED JULY 8, 1991 Member Boneysteele stated that in the absence of the Budget and Finance Committee, he reviewed the expenditures and found them to be satisfactory. It was moved by Member Boneysteele and seconded by Member ,Carlson, that the Expenditure List dated July 8, 1991, including Self-Insurance Check Nos. 100537- 100541, Running Expense Check Nos. 61249-61444, Sewer Construction Check Nos. 9817-9856, and Payroll Check Nos. 24276-24580, be approved as recommended. There being no objection, the motion was approved with President Clausen being absent. None a. 4) b. 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 10. REPORTS GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, reported that work is proceeding on the Environmental Impact Report process for the Pleasant Hill Interceptor Project. An overview of the project will be presented at the August ,1, 1 991, Board meeting. Following discussion, it was the consensus of the Board that 7:30 p.m. on Wednesday, September 4, 1991, be set as the time and date for the EIR hearing on the Pleasant Hill Interceptor Project. 2) Mr. Dolan stated that on July 9, 1991, the Board of Supervisors will consider a proposal by TOSCO to fund construction of a thoroughfare along the Waterbird Way alignment. Following discussion, Mr. Dolan was authorized to send a letter to the Board of Supervisors opposing the use of Waterbird Way as a thoroughfare. 3) Mr. Dolan distributed a flyer announcing the new recycling program for tin cans and high density polyethylene plastic in the Valley Waste Management service area. Orinda-Moraga Disposal Service, Inc. has not yet purchased the equipment needed for this program in spite of adequate notice to do so. In addition, it is uncertain when the commercial recycling program will be implemented in the Orinda-Moraga Disposal service area. Mr. Dolan announced that the Grand Jury visited the Plant on June 25, 1 991. The tour was very successful. It appeared that the Grand Jury was more interested in solid waste issues than wastewater treatment. 5) , Mr. Dolan announced that the District's temporary employees have accepted the concept of withholding 7.5 percent of their salaries for contribution to a deferred compensation account. 6) Mr. Dolan announced that the County's role in the Central Contra Costa Solid Waste Authority continues to be uncertain. That is an area of concern at this time. COUNSEL FOR THE DISTRICT None 0,7 98 9~;1- 118 c. SECRETARY OF THE DISTRICT Ms. Joyce E. Murphy, Secretary of the District, announced that letters of condolences upon the passing of Contra Costa Water District Board Member Paul Hughey, were prepared at the request of President Clausen. , d. BOARD MEMBERS None 11. ANNOUNCEMENTS None 12. 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 discussed was CCCSD versus Warner, Contra Costa Superior Court No. C90-05357. b. 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 its position and instruct its designated representatives. At 6:42 p.m., President Pro Tem Dalton declared the closed session to discuss litigation pursuant to Government Code Section 54956.9(a) and labor relations pursuant to Government Code Section 54957.6. At 6:52 p.m., President Pro Tem Dalton concluded the closed session and reconvened the meeting into open session. . 13. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 14. ADJOURNMENT There being no further business to come before the Board, President Pro Tem Dalton adjourned the meeting at the hour of 6:53 p.m. in memory of Mr. Paul Hughey. ~,ré~i t of the Board of Directors, ntral Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Se r ary of the Central ntra sta Sanitary District, County of Contra Costa, State of California 07 08 9<1