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HomeMy WebLinkAboutBOARD MINUTES 07-20-89 137 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JULY 20,1989 The. District, Board of the Central Contra Costa Sanitary District convened in a regular meeting at its regular place of meeting, 5019 Imhoff Pl ace, Marti nez, County of Contra Costa, State of Cal1forni a, at 3:00 p.m. on July 20, 1989. President Rainey called the meeting to order and requested that the Secretary call roll. I. ROlL CALL PRESENT: Members: Boneysteele, Dalton, Clausen, Carlson, Rainey ,ABSENT: Members: None II. PUBLIC COMMENTS None III. CONSENT CALENDAR It was moved by Member Carlson and seconded by Member Clausen, that the Consent Calendar, consisting of twelve items, be approved as. recommended, resolutions adopted as appropriate, and recordings duly authorized. 1. Resolution No. 89-103 accepting an easement at no cost to the District from Braddock & Logan Venture Group, et al, Danvllle area (Job 4478 Parcel 4) was adopted and recording authorized. Motion unanimously approved on the following vote: AYES: Members: Ca rl son, Clausen, Boneysteele, Dalton, Rainey NOES: Members: None ,ABSENT: Members: None 2. Resolution No. 89-104 accepting an easement at no cost to the District from S. Mal off, et al, Alamo area (Job 4644 - Parcel 1) was adopted and recording authorized. Motion unanimously approved on th~ following vote: AYES: Members: Carl son, Cl ausen, Boney steel e, Da 1 ton, Rainey NOES: Members: None ABSENT: Members: None 3. Resolution No. 89-105 accepting an easement at no cost to the District from S. Mal off, et al, Alamo area (Job 4644 - Parcel 2) was adopted and recording authorized. Motion unanimously approved on the following vote: AYES: Members: Carl son, Cl ausen, Boney steel e, Dal ton, Rainey NOES: Members: None ,ABSENT: Members: None 4. Resolution No. 89-106 accepting an easement at no cost to the District from Sue Madar, Alamo area (Job 4644 - Parcel 3) was adopted and recording authorized. Motion unanimously approved on the following vote: '.~0.7:: ;.2,0 ~¡.'~;9 " "of/" -(, .' 138 10. AYES: Members: Ca rl son, Clausen, Boneysteele, Dalton, Rainey NOES: Members: None ,ABSENT: Members: None 5. Resolution No. 89-107 accepting an easement at no cost to the District from S. Maloff, et al, Alamo area (Job 4644 - Parcel 4) was adopted and recording authorized. Motion unanimously approved on the following vote: AYES: Members: Carl son, Cl ausen, Boneysteel e, Dal ton, Rainey NOES: Members: None ABSENT: Members: None 6. Resolution No. 89-108 was adopted confirming that publication of District Ordinance No. 170, establishing the 1989-1990 Sewer Service Charges, has been made. Motion unanimously approved on the following vote: AYES: Members: Ca rl son, Clausen, Boneysteele, Dalton, Rainey NOES: Members: None ,ABSENT: Members: None 7. Resolution No. 89-109 was adopted confirming that publication of District Ordinance No. 171, adopting the Schedule of Operation and Maintenance Rates and Charges and amending District Code Section 6.30, has been made. Motion unanimously approved on the following vote: AYES: Members: Carl son, Cl ausen, Boneysteel e, Dal ton, Rainey NOES: Members: None ,ABSENT: Members: None 8. Resolution No. 89-110 was adopted confirming that publication of District Ordinance No. 172, amending and adding provisions within Chapters 1.04, 6.08, 6.16, 6.20, and 9.12 of the District Code and adopting a Schedul e of Annexati on Charges, h as been made. Motion unanimously approved on the following vote: AYES: Members: Ca rl son, Clausen, Boneysteele, Dal ton, Rainey NOES: Members: None ABSENT: Members: None 9. Authorization was given for P.A. 89-22 <Danville) and P.A. 89-23 (Danville) to be included in a future formal annexation to the District. Motion unanimously approved on the following vote: AYES: Members: Ca rl son, Cl ausen, Boney steel e, Dalton, Rainey NOES: Members: None ABSENT: Members: None The contract work' for the Holcomb Court Sewer Relocation Project, Phase II, in Walnut Creek, (District Project 4215) was accepted and the filing of the Notice of Completion was authorized. , "'~ . ,~: ';0:7 ;'2"0 t 8~9 1. 139 Motion unanimously approved on the following vote: AYES: Members: Ca rl son, Cl ausen, Boney steel e, Dal ton, Rainey NOES: Members: None J'BSENT: Members: None 11. A policy for quitcl aiming of easements was established as set forth in the position paper and incorporated herein by reference. Motion unanimously approved on the following vote: AYES: Members: Carl son, Clausen, Boneysteele, Dal ton, Rainey NOES: Members: None ABSENT: Members: None 12. The Board was advised of the close out of the Stage 56-Phase I Project, District Project 3762, and the Cathodic Protection O&M Plan, District Project 20075. This .item was presented for the Board's information. No action was taken. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None IV. SOLID WASTE RECEIVE ADDITIONAL INFORMATION AND CONSIDER THE APPLICATIONS FOR REFUSE COLLECTION RATE INCREASES .SUBMITTED BY VALLEY WASTE MANAGEMENT, ORINDA-MORAGA ,DISPOSAL SERVICE,' INC., AND PLEASANT HILL BAY SHORE DISPOSAL President Rainey stated that at the July 6, 1989 Board meeting, a public heart ng was conducted to consi der the appl icati ons for refuse collection rate increases submitted by Valley Waste Management, Orinda-Moraga Disposal Service, Inc., and Pleasant Hill Bay Shore Disposal. At that. time, the Board of Di rectors requested additional information be submitted in writing for receipt on July 20,1989. Mr. Roger J. Dol an, General Manager-Chief Engi neer, stated that additional information was submitted on behalf of the franchised refuse collectors by their attorneys, Mr. Sanford Skaggs and Mr. Ken Little. In additi on, 'correspondence was received from Stanl ey Lorencki,. Venu Kotamraju, and Stephen A. Minton, Jr. Copies of all correspondence have been proyided to the Board. Mr. Wal ter N. Funasaki, Fi nance Officer, rev iewed the staff proposals with regard to the Valley Waste Management rate application presented for the Board's consideration at the public hearing as follows: 0 That the existing $47 per ton disposal fee at Acme landfill be used to establish collection rates. . 0 That the rates be reset if di sposal expense changes significantly; reconsideration of rates would be made on the single issue of disposal expense increase or decrease. 0 That the collector be required to identify the disposal expense component on customer billings. 0 That a unique adjustment in the current rate-setting period be permitted for recovery of the unanticipated 87 percent increase in the Acme landfill disposal fee, netted against a total credit variance in all other accounts. 0 That an incremental charge of 95 cents per month per household be established for the Valley Waste Management recycling program. 07 ..20 /..89 ,.' '.: ~: . } .~, "". 140 0 That the collector be required to maintain separate records of the recycling program. 0 That the implementation of automated curbside collection be reviewed further at the August 24,1989 Board meeting. Mr. Funasaki stated that at the public hearing, the Board requested certai n additional information. Mr. Funasaki rev iewed the effect on profit at a 94 percent Operating Ratio and a 95 percent Operating Ratio if profit on disposal fees is not allowed, alternative surcharges for recovery of the unanticipated 87 percent increase in Acme landfill disposal fees netted against a total credit variance in all other accounts, and the proposed incremental expense for the Valley Waste Management recycling program. Mr. Scott Hobson, of Price Waterhouse, reviewed the method of calculating the Return on Net Tangible Fixed Assets as set forth in Attachment IV to the position paper. The Board di scussed permitti ng recovery of the prior year net expense charge resulting primarily from the Acme landfill disposal fee increase of. 87 percent. Following discussion, it was the consensus of the Board that recovery of the prior year net expense charge of $389,000 be allowed by a surcharge spread equally to all cans and to the commercial and drop box rates as set forth in the staff calculation. Board di scussi on turned to consi deration of the net i ncremental expense of the recycli ng program. In the di scussi on that followed, support was expressed both for an across-the-board charge for all cans and for a surcharge on additional cans as ways of encouraging recycling. It was the comclusion of the Board that insufficient information exists at this time to make such a determination; however, these options will be considered during next year's rate-setting process when actual recycling program resul ts are aval1 abl e. It was the consensus of the Board to approve impl ementati on of a full-scal e recycling program at an incremental cost of 95 cents per household per month when service begins. The Board discussed permitting reimbursement of disposal expenses at cost, w ithno profit. Following discussion, it was moved by Member Carlson and seconded by Member Dalton, that a resolution be adopted establishing new refuse collecti on rates for Valley Waste Management effective July 1, 1989, based on a 94 percent Operating Ratio including disposal fees in operating expenses and profit calculation, allowing mid-year reconsideration of disposal fees on a dollar per dollar basis should they increase or decrease, allowing recovery of prior year net expense charge by a surcharge spread equally to all cans and to commercial and drop box rates as calculated by staff, approving implementation of a full-scale recycling program at an incremental cost of 95 cents per househol d per month when service begins, and directing the collector to maintain separate records of revenues and expenses for the recycling program. The motion failed to pass on the following roll call vote: . AYES: Members: Ca rl son, Dalton NOES: Members: Boney steel e, Cl ausen, Rainey ABSENT: Members: None It was moved by Member Cl ausen and seconded by Member Boney steel e, that Resolution 'No. 89-111 be adopted establishing new refuse collection rates for Valley Waste Management effective July 1, 1989, based on a 93 percent Operating Ratio excluding disposal fees from operating expenses for the purpose of profit calculation, allow1ng reconsideration of disposal fees on a dollar per dollar basis should they increase or decrease, allowing recovery. of prior. year net expense charge by a surcharge spread equally to all cans and to commercial and drop box rates as calculated by District staff, approving implementation of a full-scale recycling program at an incremental cost of 95 cents per household per month when service begins, and directing the collector to maintain separate records of revenues and expenses for the recycling program. Motion approved on the following roll call vote: i ()7 ; 20;89 141 AYES: Members: Cl ausen, Boney steel e, Dalton, Rainey NOES: Members: Carlson ABSENT: Members: None Member Boneysteele noted for the record that although he voted yes, he mai ntai ns that both Waste Management and the Di strict shoul d do everything possible to oppose tipping fee increases at Acme Landfill. President Rainey declared a recess at the hour of 4:33 p.m., reconvening at the hour of 4:35 p.m. with all parties present as designated heretofore. Mr. Funasaki reviewed the staff proposal with regard to Orinda-Moraga Disposal Service, Inc. submitted for consideration at the July 6,1989 public hearing as follows: 0 -lhat the existing $47 per ton disposal fee at Acme landfill be used to establish collection rates. 0 That the rates be reset if disposal expense changes significantly; reconsideration of rates would be made on the single issue of disposal expense increase or decrease. 0 That the collector be required to identify the disposal expense component on customer billings. 0 That an incremental charge of 95 cents per month per household be established for the Orinda-Moraga Disposal Service recycling program. That the collector be required to maintain separate records for the recycling program. 0 Mr. Funasaki stated that at the public hearing, the Board requested that certain additional information be assembled by staff. Mr. Funasaki reviewed the effect on the revenue requirement and resultant collection rates if the forecasted Acme landfill disposal expenses were reimbursed to the refuse collector at cost, with no profit. The effect on the revenue requi rement and resul tant coll ecti on rates based on product ng effective operati ng ratios of 94 and 95 percent were rev iewed. As requested by the Board, Mr. Funasaki reviewed the effect of reimbursement for prior year net expense charge of $87,000. Following discussion, it was the consensus of the Board that consistent with the Board action with regard to Valley Waste Management, the prior year net expense charge of $87,000 resul ti ng primarily from increased disposal fees at Acme landfill be reimbursed, that the full~scale recycling program be implemented, and that a monthly charge of 95 cents per residential and commercial customer be established for the recycling program. Following discussion of the treatment of disposal fees, it was moved by Member Carlson, that a resolution be adopted establishing new refuse collection rates for Orinda-Moraga Disposal Service, Inc. as set forth in r.lternative B. of Attachment V to the position paper. Motion died for lack of a second. It was moved by Member Clausen and seconded by Member Boneysteele, that Resolution No. 89-112 be adopted establishing new refuse collection rates for Orinda-Moraga Disposal Service, Inc. effective July 1,1989, based on a 93 percent Operating ratio excluding disposal fees from operating expenses for the purpose of profit calculation, allowing reconsideration of disposal fees on a dollar per dollar basis should they increase or decrease, allowing recovery of prior year net expense charge by a surcharge spread equally to all cans and to commercial and drop box rates as calculated by.District staff, approving implementation of a full-scale recycling program at an incremental cost of 95 cents per month per residential and commercial customer when service begins, and directing the collector to maintain separate records of revenues and expenses for the recycli ng program. Motion unanimousl y approved on the following roll call vote: 07 ~.o .,'. 89 " " 142 AYES: Members: Cl ausen, Boney steel e, Dal ton, Carl son, Rainey NOES: Members: None ABSENT: Members: None Mr. Funasaki reviewed the staff proposal with regard to Pleasant Hill Bay Shore Disposal presented for consideration at the July 6,1989 public hearing as follows: 0 That the collector be required to identify the disposal expense component on customer billings. 0 That the collector be required to maintain separate records for the recycling program. Mr. Funasaki reviewed the current and proposed rates based on a 94 percent Operating Ratio. Mr. Funasaki reported that a letter was received yesterday from Pleasant Hill Bay Shore Disposal requesting a skewing of the rates so that residential rates would be in excess of $15 because Pleasant Hill Bay Shore feels that commercial subsidizes residential rates. District staff recommends that rates be set as recommended this year and any adjustment to commercial rates be considered next year. Board discussion followed concerning treatment of disposal fees. It was moved by Member. Carl son and seconded by Member Cl ausen, that Resolution No. 89-113 be adopted establishing new refuse collection rates for Pleasant Hill Bay Shore Disposal effective July 1, 1989, based on a 93 percent Operating Ratio excluding disposal fees from operating expenses for the purpose of profit calculation, allowing reconsideration of disposal fees on a dollar per dollar basis should they increase or decrease, approving implementation of a full-scale recycling program with determination of the net incremental expense for the recycling program to be incorporated i nto the D1 strict's annual rate-setti-ng schedul e i n future years, and directing the collector to maintain separate records of revenues and expenses for the recycling program. Motion unanimously approved on the following roll call vote: AYES: Members: Ca rl son, Cl ausen, Boneysteele, Dalton, Rainey NOES: Members:. None ,ABSENT: Members: None President Rainey thanked Mr. Funasaki for the excellent job he and his staff did during the annual rate-setting process. V. APPROVAL OF MINUTES 1. MINUTES OF J UL Y 6, 1989 It was moved by Member Dalton and seconded by Member Carlson, that the minutes of July 6,1989, be approved with the following amendments: On page 4 in the fifth paragraph, the words "unrealized profit" were changed to "unrecovered costs." The first sentence in the first paragraph on page 11 was deleted and i n the next sentence the words "as well" were del et'ed. There being no objection, the above motion was approved with Member Clausen abstaining because he was not present at the meeting of July 6, 1989. VI. APPROV AL OF EXPENDITURES 1. EXPENDITURE LIST DATED JULY 20, 1989 Member Dal ton, member of the Budget and Fi nance Committee, stated that he and Member Clausen reviewed the expenditures and found them to be sati sf actory. 07 2'(} ,'.', " Sg 143 It was moved by Member Dalton and seconded by Member Clausen, that the Expenditure List dated July 20,1989, including Self-Insurance Check Nos. 100372-100373, Running Expense Check Nos. 47210-47511, and Sewer Construction Check Nos. 7247-7291, be approved as recommended. There being no objection, the motion was unanimously approved. VII. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None VIII. REPORTS 1. GENERAL MANAGER-CHIEF ENGINEER a. Mr. Dolan, General Manager-Chief Engineer, reported that District representatives have met with the Cities of Walnut Creek and San Ramon and County staff to discuss a Central County public transfer station. Mr. Dolan reviewed the highlights of those discussions and the related County Solid Waste Management Plan language in which South Central County is identified as being Treat Boulevard and south. The County has issued a Request for Proposals for those interested in developing a transfer station or disposal site. Proposals must be submitted by September 15,1989. b. Mr. Dolan discussed the intention of the County to regulate rates at the Acme permanent transfer station and the need for regulation of rates at the Acme interim transfer station. Mr. Dolan indicated that Di strict staff does not know what arrangements can be made for pass through of any given landfill disposal charge as part of the Acme interim transfer stati on rates. Acme may not have an i ncentive to negoti ate a low rate. Mr. Dol an requested and the Board agreed that an ad hoc committee of Board Members Rainey and Clausen meet with staff to institute negotiations of disposal charges at Altamont landfill. c. Mr. Dol an reported that Board Members Carl son and Boneysteel e and District staff met with Contra Costa Water District Board and staff members to di scuss the j oi nt Water Recl amati on proj ect. An update of technical developments was presented and policy level support for concepts for continued contract negotiations was obtained. The project currently being discussed is a 2.5 mgd industrial reuse project supplying 25 percent of the cooling water to Shell and TOSCO. This project can be operational by late spring of 1990. Substantial potential exists for additional reclamation and development of a landscape irrigation project is being discussed. d. Mr. Dolan introduced Mr. John Larson, Collection System Operations Department Manager, who briefed the Board on an emergency situation at Montair Place in Danville. While installing fence posts, a landscape company broke the District's sewer line and filled 100 feet of downhill sewer line with concrete. Mr. Larson described the repairs made by the District and showed a video of the work using the FlowMole guided bori ng system. e. Mr. Dol an reported that the Di strict received a grant i n the amount of $6,844 from the California Department of Conservation, Department of Recycling. The funds will be used for public information and educational materials for recycling. President Rainey requested that letters be drafted to those who supported the District in securing the grant. Letters will be drafted for President Rainey's signature. f. Mr. Dolan reported that the District will advertise for bids for the Third Floor Remodeling Project in the near future. 2. COUNSEL FOR THE DISTRICT None 3. SECRETARY OF THE DISTRICT Ms. Joyce McMillan, Secretary of the District, distributed the Training/Conference Summary for April-June 1989. ~'O'i {z,o '89 144 4. BOARD MEM3ERS Household hazardous waste, curbside recycling of oil, the report of the Pl astics Subcommittee,. and the possi bl1ity of the County securi ng grant funds for educational efforts directed toward recycling will be discussed at the Recycling Advisory Committee meeting on August 2,1989. Member Cl ausen reported that Al ameda County has issued a Land Use Permit to Waste Management to accept Contra Costa County waste. The permit contai ns many condi ti ons and additional approval swill be requi red. IX. ANNooNCEMENTS President Rainey announced that the American Cancer Society will host the Fourth Annual Bocce Ball Battle on July 30, 1989. Those interested in representing the District should contact Joyce McMillan. X. CLOSED SESSION 1. EXISTING LITIGATION The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The titles of the litigation discussed were: a. CCCSD v. Western Title Insurance Company, et al Contra Costa Superior Court No. C88-01497 Lewis v. CCCSD, et al Contra Costa Superior Court No. C88-03197 b. At 6:08 p.m., President Rainey declared the closed session to discuss litigation pursuant to Government Code Section 54956.9(a). At 6:55 p.m., President Rainey concluded the closed session and reconvened the meeting into open session. XI. ACTIONS RESULTING FROM DISCUSSIONS .IN CLOSED SESSION None XII. ADJ OURNMENT There being no further business to come before the Board, President Rainey adjourned the meeting at the hour of 6:55 p.m. President of the Board of Directors Central Contra Costa Sanitary Distri , County of Contra Costa, State of Californi a COUNTERSIGNED: Sec y of the Cent al Contra Cos Sanitary District, County of Contra Costa, State of California O~ Q,.£\ ..8..9 .:'.~, : /i,lu ..: