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HomeMy WebLinkAboutBOARD MINUTES 05-31-90 99 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 31, 1990 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 May 31, 1990. President Carlson called the meeting to order and requested , that the Secretary call. roll. 1. ROLL CALL PRESENT: Members: Boneysteele, Clausen, Carlson ABSENT: Members: Dalton, Rainey Members Dalton and Rainey had previously indicated that they would be unable to attend this meeting and had requested that they be excused. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. LETTER FROM MR. JAMES J. HARKINS COMMENDING MESSRS. HENRY THOM AND ROBERT COLLINS FOR THEIR RESPONSE TO HIS WATER LINE PROBLEM On behalf of the full Board, President Carlson commended Messrs. Henry Thom and Robert Collins for their efforts in solving this situation that could have become a much larger problem. 4. CONSENT CALENDAR It was moved by Member Clausen and seconded by Member Boneysteele, that the Consent Calendar, consisting of two items, be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Quitclaim Deed to Stephen E. Harriman, et ux, Job 1564, was approved, the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said Quitclaim Deed, and Resolution No. 90-065 was adopted to that effect. Motion approved on the following vote: AYES: Members: Clausen, Boneysteele, Carlson NOES: Members: None ABSENT: Members: Dalton, Rainey b. Staff was authorized to secure the services of an arbitrator in accordance with Article III, section 3.3.B and 3. 4 . B of the Memorandum of Understanding between Central Contra Costa Sanitary District and the Employees' Association, Public Employees' Local No.1 in the matter of Mr. Wayne Masten. Motion approved on the following vote: AYES: Members: Clausen, Boneysteele, Carlson NOES: Members: None ABSENT: Members: Dalton, Rainey 05, 3 :1~,' 9~ O. , 100 CALL FOR REOUESTS TO CONSIDER ITEMS OUT OF ORDER None 5. SOLID WASTE a. FURTHER CONSIDERATION OF REQUEST FOR CONSENT TO THE ASSIGNMENT OF THE ORINDA-MORAGA DISPOSAL SERVICE. INC. FRANCHISE AGREEMENT TO W. DOUGLAS LOMOW. ET AL Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that Mr. Lomowconsented to having Messrs. Kenton AIm and Walter .Funasaki inspect the Letter of Intent setting forth the purchase agreement provisions with regard to the sale of Orinda-Moraga Disposal Service, Inc. to Mr. W. Douglas Lomow, at ale A brief description of that inspection is contained in the position paper. Staff would be happy to elaborate further if the Board wishes. Mr. Dolan stated that at this time, staff has no reason to recommend that the Board not proceed with the consent to the assignment of the franchise agreement. However, staff is concerned that the District's practice with regard to rate setting is absolutely opposed to the provisions of the transfer agreement. It would appear that Mr. Lomow is purchasing only the franchise agreement and that the franchise agreement may have no value a year from now. In addition, the normal District rate-setting process would not approve many of the conditions of the transfer transaction. President Carlson stated that the District is not a party to the agreement. It is possible that the franchise could be more valuable in a year. If the party, Mr. Lomow, is in a position to provide refuse collection service to the communities of Orinda and Moraga, President Carlson stated that the District should consent to the assignment of the franchise agreement. Member Clausen stated that it would appear that Mr. Lomow is qualified to run the business based on his operations in the State of Idaho. However, Member Clausen stated that he would not vote for any rate increase that included any of the costs of acquisition. Member Boneysteele voiced concern that the costs of acquisition are so onerous that he is not satisfied that Mr. Lomow will be able to make the payments out of the profits of the corporation, which the present franchisee feels are inadequate. The District does not require financial statements from Mr. Lomow so we have no way of knowing his financial condition. Consequently, the District does not know whether Mr. Lomow has the resources to operate or not. If the Board does not pass through rates to allow Mr. Lomowto operate and he does not have resources to maintain operation, there are few alternatives available. Member Boneysteele expressed concern that the transfer is not going to be an economic transfer and so could lead to major problems. Mr. Walter N. Funasaki, Finance Officer, described the relationship between the operator and the franchisee after the transfer and described the proposed ownership of the assets. Board discussion followed concerning the continued operation of the refuse collection service, lease of equipment, and the provisions of the purchase agreement. ,Member Clausen pointed out that the proposed transaction appeared more to be an option to purchase rather than a purchase because of the many conditions evidently imposed. Mr. Dolan stated that Mr. George Navone has done a good job, and staff is pleased that Mr. Navone will continue to operate the company. ' It was moved by Member Clausen and seconded by Member Carlson, that consent to the assignment of the Orinda-Moraga Disposal 05,' 3::1, 90 101 Service, Inc. franchise agreement to W. Douglas Lomow, et aI, be approved with the clear understanding by all parties that the action to approve the assignment does not commit the Board whatsoever regarding the rate-setting issue embodied in the contemplated purchase agreement, and that staff be directed to prepare a resolution to that effect for consideration at the June 8, 1990 Board Meeting. Motion approved on the following roll call vote: AYES: Members: - Clausen, Carlson NOES: Members: Boneysteele ABSENT: Members: Dalton, Rainey 6. CORRESPONDENCE a. NOTE RECEIPT OF LETTER FROM MR. DON RITCHEY. MAYOR OF THE TOWN OF DANVILLE. 'REGARDING THE TREE PLANTED IN CONJUNCTION WITH EARTH DAY ACTIVITIES President Carlson acknowledged receipt of the letter from Mr. Don Ritchey, Mayor of the Town of Danville, regarding the tree planted in conjunction with Earth Day activities. 7. APPROVAL OF MINUTES a. MINUTES OF ADJOURNED REGULAR MEETING OF APRIL 26. 1990 b. MINUTES OF REGULAR MEETING OF MAY 3. 1990 c. MINUTES OF REGULAR MEETING OF MAY 17. 1990 It was moved by Member Boneysteele and seconded by Member Clausen, that the minutes of the Adjourned Regular Meeting of April 26, 1990, the minutes of the Regular Meeting of May 3, 1990, and the minutes of the Regular Meeting of May 17,1990, be approved as presented. There being no objection, the motion was approved with Members Dalton and Rainey being absent. 8. BUDGET AND FINANCE a. RECEIVE THE 1990-1991 OPERATIONS AND MAINTENANCE BUDGET AND THE SELF-INSURANCE FUND BUDGET FOR REVIEW' Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Walter N. Funasaki, Finance Officer, who presented the 1990-1991 Operations and Maintenance (O&M) Budget for initial review. Mr. Funasaki highlighted the budgeted revenues, expendi tures, and' reserves as detailed in the proposed 1990-1991 O&M Budget. Mr. Funasaki stated that, as we had anticipated last year, based on the current Sewer Service Charge rate of $124, the reserve level would be reduced to below the prudent reserve level at the end of 1990- 1991. Discussion followed concerning the contra account and the Concord billing with regard to payment for O&M and capital expenditures. Mr. Funasaki presented a comparison of projected actual and budgeted O&M revenues and expenses by broad category in new and on- going programs. Mr. Funasaki described the increases in employee benefits between projected actual and budgeted amounts. Member Boneysteele expressed concern about the contingency of $100,000 for labor expense adjustments. Following discussion, it was the consensus of the Board that all contingency for salary increases be removed from the proposed budget. Messrs. John Larson, Paul Morsen, Robert Baker, and william Brennan highlighted the changes in their respective departmental 05ii':31~"90":' ;'~< {., ~:t 102 budgets and described new programs which will be implemented during the coming year. In response to questions from the Board, Mr.' Dolan described the recent flooding in Walnut Creek as it relates to the Self- Insurance Fund. Board discussion followed concerning the restorative carpet cleaning program, driver training for implementation of the Class A or B driver licenses, and monitoring and detection of lead exposure in the workplace. Member Boneysteele discussed the use of lobbying services of Mr. Michael Dillon, of the California Association of Sani tation Agencies. Messrs. Dolan and Baker indicated that they were not at this time committed to the services of anyone lobbyist, and stated that any work will be done on a resul ts based billing process rather than a time and materials basis. The Board discussed the landfill gas and natural gas accounts, janitorial and refuse removal, and pick Operating System and Industrial Rheology training. Mr. Funasaki reviewed the present $124 Sewer Service Charge rate and the rates of neighboring agencies. Mr. Funasaki presented a graphic comparative analysis depicting alternatives for setting the Sewer service Charge rate based on retention of a prudent reserve and considering anticipated revenues and expenditures. Mr. Dolan stated the staff recommendation that the Board approve a $12 increase in the Sewer Service Charge rate for the 1990-1991 fiscal year. Member Boneysteele questioned whether there would be any restrictionS against borrowing from the Sewer Construction Fund on an emergency basis in the event the O&M reserves were depléted. Mr. Funasaki stated that he was not aware of any regulatbry restrictions. Funds could be transferred from the Sewer Construction Fund on a temporary basis. Member Clausen cautioned that the longterm view be considered, stating that in future years the Sewer Construction Fund will be depleted as well. Discussion followed concerning the sources of revenue for the Sewer Construction Fund and the Running Expense Fund. Mr. Funasaki reviewed the Self-Insurance Fund Budget projected revenues, expenses, and reserves for 1989-1990 and the proposed Self-Insurance Fund Budget for 1990-1991. President Carlson declared that the 1990-1991 O&M Budget and Self-Insurance Fund Budget were duly received and would be calendared for further consideration at the June 8, 1990 Board Meeting. 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 10. REPORTS GENERAL MANAGER-CHIEF ENGINEER a. None b. COUNSEL FOR THE DISTRICT None c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS None os' 31 ,:,,90 103 11. ANNOUNCEMENTS None 12. CLOSED SESSION None 13. ACTIONS RESULTING FROM DISCUSSION IN CLOSED SESSION None 14. ADJOURNMENT There being no further business to come before the Board, President Carlson adjourned the meeting at the hour of 5:50 p.m. to reconvene at 3 p.m. on Friday, June 8, 1990, for an Adjourned Regular Meeting. ~L2L President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, state of California COUNTERSIGNED: ~ Se~retary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California 05 "',' ',,' 3~ " I .. ,. 90 . "