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HomeMy WebLinkAboutBOARD MINUTES 06-21-90 112 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE'21, 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 June 21, 1990. President Carlson called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: MEMBERS: Boneysteele, Dalton, Clausen, Rainey, Carlson ABSENT: MEMBERS: None ," 2. PUBLIC COMMENTS None President Carlson stated that because of considerable interest from members of the audience, several items will be taken out of order at this time. 4. BIDS AND AWARDS b. CONSIDER RESPONSIVENESS OF DALTON CONSTRUCTION'S BID TO CONSTRUCT M-2 PARALLEL FORCE MAIN. DISTRICT PROJECT 4610 AND CONSIDER AWARD OF CONSTRUCTION CONTRACT TO LOWEST RESPONSIVE BIDDER: AUTHORIZE EXECUTION OF AGREEMENT WITH CAMP DRESSER & McKEE Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that complications developed upon staff review of the bids submitted for construction of the M-2 Parallel Force Main, District Project 4610. Mr. Dolan indicated that staff will explain the complications and the resulting recommendation that award be authorized to the second low bidder and that the apparent low bid be rejected as nonresponsive and nonresponsible. Mr. David R. Williams, Engineering Division Manager, stated that the M-2 Parallel Force Main Project is critical to the District. Mr. Williams explained the location and alignment of the M-2 Force Main which carries the flow for the entire city of Martinez. The M-2 Force Main has a history of failures due to ground settlement and corrosive soils. The project is a difficult one because of the number, length, and size of the borings and the soil and groundwater conditions. In addition, the project is under time constraints in that work will be done in Pacheco Slough under a Department of Fish and Game permit which expires on October 15, 1990. . Mr. Williams reviewed the bid data and the sequence of events leading to the bid opening on June 13, 1990. Five bids were received ranging from $1,293,888 to $2,182,571. Mr. Dolan distributed a packet of information to each Board Member containing the overheads used in Mr. Williams' presentation; correspondence received from Dalton Construction Company dated June 14, 1990, June 19, 1990, and June 21, 1990; internal telephone conversation notes and memoranda to the file; and Contract Documents for M-2 Parallel Force Main, District project No. 4610, Volume 1 of 3: Project Manual Bidding Conditions and Requirements. Mr. Williams reviewed the bid evaluation sheet used on all District project bids and highlighted the specifics relating to the M-2 force main bid. Mr. Williams stated that a copy of this spread sheet was contained in the packet presented to the Board. Mr. ; \"6"" :,i:"~h~'l. ";.'>9:' fO' ~"~Ù' ';,,":,}¡t¡;,', ',' ',', 113 williams reported that all the information requested was provided by all bidders with the exception of Dalton Construction Company. Dalton Construction Company provided no information with regard to subcontractors, material suppliers, or technical ability and experience of Dalton Construction Company to install polyethylene pipe as called for in the Proposal Form. The bid documents clearly state that the bid may be considered nonresponsive and the bid rejected if the forms are not completed. These omissions raised the flag of potential irregularities, and staff investigated further. Mr. Philip Lee, of Dalton Construction Company, signed , the proposal forms and was contacted by District staff with regard to these potential irregulariti~s. Mr. Williams reported that Mr. Lee commented that failure to list the boring subcontractor was an oversight and that Dalton Construction Company intended to use precision Road Boring. Mr. Lee stated that the rest of the information would be coming from his subordinate. Mr. Ronald Zelaya, a subordinate of Mr. Lee, then contacted the District. Mr. Williams stated that subsequent to talking with Mr. Lee, staff had telephoned precision Road Boring who said that they had spoken to Mr. Philip Lee after the bid opening and were told that Dalton Construction Company intended to use them to complete the boring portion of the project. Mr. Zelaya stated that Dalton Construction Company intended to do the boring work themselves and not use a subcontractor. Mr. Williams stated that this information raised a new question as to whether Dalton Construction Company had the experience to do the boring work. The issue of experience is very important to the District for reasons spelled out in the conditions and requirements in the bid. Mr. Williams reviewed that language for the Board. Dalton Construction Company was asked to provide references on the boring work they have done. The references provided, the City and County of San Francisco, the City of Tracy, West Valley Sanitary District, and the City of West Sacramento, were called. It was found that Dalton Construction Company was the pipe contractor on jobs for these agencies. Boring was involved and a subcontractor was used in each case. On two of the jobs, the subcontractor failed to perform and a new subcontractor was brought in. On the other two jobs, the subcontractor was having problems and Dalton Construction Company had to exercise more supervision. Dalton Construction Company has one other job with Central Contra Costa Sanitary District and precision Road Boring is the subcontractor listed on that job. Mr. Williams reported that Dalton Construction Company was notified that the District had these concerns and that the District intended to have a responsiveness hearing. A copy of the position paper was faxed to Dalton Construction Company. since then a letter was received from Dalton Construction Company requesting a meeting. A meeting was held this morning, June 21, 1990. Another letter was provided at the meeting. All of these letters have been presented to the Board. Mr. Williams stated that no additional -information was received at the meeting that persuaded staff that Dalton Construction Company was experienced in boring. Mr. Williams stated that there are three issues from the staff perspective: 1) experience, 2) material suppliers, and 3) subcontractors. Mr. Williams stated that if Dalton Construction Company intended to have a boring subcontractor and did not list it, that constitutes a major variance and the bid should be considered nonresponsive. If the Board concludes that Dalton Construction Company intended to do the work themselves, then staff believes that Dalton Construction Company is not an experienced boring contractor and should be declared nonresponsible. The Board questioned Mr. Williams with regard to the reasons for and importance of listing material suppliers and subcontractors, the technical requirements and differences between installation of flexible pipe and rigid wall pipe, and the legal requirements for listing of subcontractors. Mr. Ronald H. Zelaya, of Dalton Construction Company, appeared before the Board. Mr. Zelaya stated that he heiped put together the bid for the M-2 Parallel Force Main Project while Mr. Phil Lee was out of town. Mr. Zelaya reviewed his qualifications and 06 21 90., 114 experience in the construction business. Mr. Zelaya requested that the Board postpone their decision on this matter until Dalton Construction Company has had an opportunity to review the situation. Mr. Zelaya stated that there was no prequalification in the bid documents as to who was to do the casing installation work. Other District jobs have had such prequalifications. Mr. Zelaya stated that as far as installation of polyethylene pipe is concerned, Dalton Construction Company was one of the first firms in the Bay Area to install polyethylene pipe. Mr. Zelaya stated that there is only one supplier of polyethylene pipe in the Bay Area, the other is in Canada. Mr. Zelaya stated that Dalton Construction Company made a mistake in not completing the material supplier proposal form, but the company does not feel that is material or affects the bid. Mr. Zelaya stated that the only subcontractor contacted was precision Road Boring. Dalton Construction Company felt their quote was excessive and decided to hire crews and equipment to perform the boring work. Mr. Zelaya stated that Dalton Construction Company felt this was a critical installation and by doing the work themselves, they could ensure that a better job was done at a lower cost. In closing, Mr. Zelaya stated that Dalton Construction Company has the wherewithal, technical experience, and licensing requirements to get the job done. Mr. Clausen asked Mr. Zelaya if he correctly understood Mr. Zelaya's earlier statement that Mr. Lee signed the bid forms in blank before he left and that he (Zelaya) filled out the forms later. Mr. Zelaya indicated that that was correct. Mr. Jim Dalton, President of Dalton Construction Company, reviewed his personal qualifications and experience and the background and experience of Dalton Construction Company. Mr. Dalton stated that a list of agencies for whom Dalton Construction Company has done work was included in the bid. A telephone call would have indicated which of those jobs involved polyethylene pipe. Dalton Construction Company has done approximately $200 million of work over the last 20 years. Several jobs involved boring. Dalton Construction Company has experienced problems with boring contractors on about 30 percent of the boring jobs. The Dalton Construction Company license covers boring. Mr. Dalton asked that the Board of Directors award the bid for the M-2 Parallel Force Main Project to Dalton Construction Company, the low bidder on the project. Member Rainey asked Mr. Dalton if he would object if he were .the second low bidder and the low bidder had not completed all the proposal forms. Mr. Dalton stated that he would not object, because the omission was not material. Mr. Dalton stated that not listing the material supplier was a minor irregularity. A list of 25 jobs was submitted as a reference. District staff could have called the agencies for names of those who could provide references on each job. In response to a question from Mr. AIm, Mr. Dalton stated that there was a misunderstanding because Mr. Lee was out of town. Mr. Lee did not know that Dalton Construction Company had decided to perform the boring work rather than use a subcontractor. There being no further questions or comments, Carlson closed the hearing at the hour of 3~54 p.m. Mr. Kenton L. AIm, Counsel for the District, stated that if any or all of the discrepancies staff pointed out, in the judgement of the Board, amount to material variances, then the Board of Directors may reject the bid. with regard to responsibleness, the Board must determine whether, based on the information before the Board, that there is sufficient information to demonstrate that Dalton Construction Company is competent to do the polyethylene pipe installation and boring work. President Mr. Dolan stated that the bid documents asked for a statement of experience regarding installation of polyethylene pipe'. As 06 21 9"0' 115 discussed, that was not forthcoming. A statement of experience regarding boring was not requested in the bid since the District had anticipated that an experienced contractor would be bidding the job and would realize from the language in the contract documents that all successful bidders must display that they are experienced in performìng the work. In response to a question from President Carlson, Mr. Williams stated that all of the other four bidders listed their experience with regard to installation of polyethylene pipe, providing agencies and telephone numbers. Member Rainey stated that as a public agency, the District has a responsibility to hire contractors who are qualified to do the work. It is difficult to determine if Dalton Construction Company is qualified because the necessary information was not provided and the bid proposal was not completed. It was moved by Member Rainey and seconded by member Clausen, that the bid of Dalton Construction Company to construct the M-2 Parallel Force Main Project, District project 4610, be rejected as being neither responsive nor responsible. Following discussion, the motion was unanimously approved on the following roll call vote: AYES: Members: Rainey, Clausen, Boneysteele, Dalton, Carlson NOES: Members: None ABSENT: Members: None It was moved by Member Rainey and seconded by Member Clausen that award of contract for construction of District project No. 4610, M-2 Parallel Force Main Project, be authorized to Fee Construction, Inc. in the amount of $1,311,000 as the lowest responsive and responsible bidder. Motion unanimously approved on the following roll call vote: AYES: Members: Rainey, Clausen, Boneysteele, Dalton, Carlson NOES: Members: None ABSENT: Members: None It was moved by Member Rainey and seconded by Member Clausen, that the General Manager-Chief Engineer be authorized to execute a cost reimbursement agreement with a cost ceiling of $137,000 with Camp Dresser & McKee, Inc. Following discussion of the Post Bid Preconstruct ion Estimate provided in Attachment II to the position paper, Mr. Robert A. Baker, Deputy Chief Engineer, stated that he would review the estimates for Construction Management-District Forces and Consultants/Contractors and pare those estimates down. Mr. Dolan indicated that he would report revised estimates to the Board at the next Board meeting. . President Carlson called for a roll call vote on the above motion to authorize the General Manager-Chief Engineer to execute a cost reimbursement agreement with a cost ceiling of $137,000 with Camp Dresser & McKee, Inc. The motion was unanimously approved on the following roll call vote: AYES: Members: Rainey, Clausen, Boneysteele, Dalton, Carlson NOES: Members: None ABSENT: Members: None 06 ,2~ 90 :' r " 116 At this time, President Carlson proceeded to item 4a., Bids and Awards. 4. BIDS AND AWARDS a. AUTHORIZE AWARD OF CONTRACT TO MONTEREY MECHANICAL COMPANY FOR CONSTRUCTION OF THE SLUDGE BLENDING PROJECT. DISTRICT PROJECT 20080 Mr. Dolan, General Manager-Chief Engineer, recommended that the Board authorize award of the contract for construction of the Sludge Blending Project to Monterey Mechanical Company, the lowest responsible bidder. Following discussion, it was moved by Member Rainey and seconded by Member Dalton, that award of the contract for construction of the Sludge Blending Project, District Project 20080, be authorized to Monterey Mechanical Company, the lowest responsible bidder in the amount of $1,265,000. Motion unanimously approved on the following roll call vote: AYES: Members: Rainey, Dalton, Boneysteele, Clausen, Carlson NOES: Members: None ABSENT: Members: None President Carlson stated that in an effort to address items of interest to the public, he would continue to depart from the agenda. 5. CONSENT CALENDAR It was moved by Member Rainey and seconded by Member Boneysteele, that the Consent Calendar, Items a. through e., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. The process to establish Local Improvement District 57 (Midhill Sewer Project) was continued; Resolution No. 90- 071. Resolution of Intention to Order Improvements, was adopted; Resolution No. 90-072. Resolution Accepting the Engineer's Report for LID 57 and setting August 2, 1990, as the hearing date for receiving public testimony on LID 57, was adopted; and Resolution No. 90-073. Resolution Calling for Construction Bids, was adopted. Motion unanimously approved on the following vote: AYES: Members: Rainey, Boneysteele, Dalton, Clausen, Carlson NOES: Members: None ABSENT: Members: None b. c. The Board was advised of the close out of 37 Capital Improvements Projects. This item was presented for the Board's information. No action was taken. The attendance of Mark Benson, Instrument Technician, was authorized at the Kratos Service Training Course at Tennessee Valley Authority in Mussel Shoals, Alabama, for the week of July 23, 1990, at a cost of $1,100. Motion unanimously approved on the following vote: AYES: Members: Rainey, Boneysteele, Dalton, Clausen, Carlson NOES: Members: None ABSENT: Members: None 06 91 an 117 d. The amount of $4,500 was authorized from the Sewer Construction Fund to the General Improvements Contingency Account to supplement the 1989-1990 Equipment Budget for the purchase of Montedoro-Whitney flow metering equipment and accessories. Motion unanimously approved on the following vote: AYES: Members: Rainey, Boneysteele, Dalton, Clausen, Carlson NOES: Members: None ABSENT: Members: None a. The request of Derhyl F. Houck for an emergency withdrawal of $8,509 from the Deferred Compensation Plan was approved as recommended by the Deferred Compensation Plan Advisory Committee. Motion unanimously approved on the following vote: I AYES: Members: Rainey, Boneysteele, Dalton, Clausen, Carlson NOES: Members: None ABSENT: Members: None President Carlson proceeded to Item 7a., Engineering. 7. ENGINEERING a. RECONSIDER APPROVAL OF A REAL PROPERTY AGREEMENT WITH PINEBROOK PARTNERS. JOB 1529 - PARCEL 1. LAFAYETTE AREA Mr. Dolan, General Manager-Chief Engineer, stated that at the last Board meeting, the Board instructed staff to go back to Pinebrook Partners and ask whether they really needed to encroach on the District's easement. If they did require the encroachment, staff was directed to advise them of the District's concern with the maximum limit on future liability in the event of a costly repair. Since that time, Mr. John Larson, Collection System Operations Department Manager, has met with the developer and the developer is here today. Mr. Larson, CSO Department Manager, briefly described the existing line and the project proposed by Pinebrook Partners. Mr. Larson discussed the issues raised by the Board dealing with the foundation of the building and widening of the easement. Pinebrook Partners has offered to install the foundation to a depth that will protect the building in the event that future excavation is required and they have offered to grant additional easement rights to provide room if future excavation is needed. Mr. Larson stated that no change is proposed to the limit on the future liability for the owners of the project, which would be limited to $3,000 with a CPI escalation clause. Mr. Dudley Frost, developer representing Pinebrook Partners, addressed the Board. Mr. Frost stated that the parcel is narrow and difficult to develop but pinebrook Partners wishes to go forward. Infill is always difficult in a residential area. The building has been shifted to try to move away from the easement but the angle and constraints of the property are complications. Approval has been received from the City of Lafayette. The piers for the building will be lowered to 13 feet, the depth of the sewer line. The easement will be widened by a minimum of five feet to the northeast to provide a greater opportunity for the District if future excavation is needed. Mr. Frost stated that, 'as required by law, the Association will make public all agreements, restraints, and related items. 06 21 90:0:, " ;'; " :' 118 Discussion followed concerning the design of the building, the adequacy of the easement for future work that may be required, and the adequacy of the line to handle present and future flows. In response to questions from the Board, Mr. Dolan explained the background of this matter and stated that the action before the Board is the product of a compromise that included both features that worked to the advantage of the District and features that worked to the advantage of the developer. At this point, staff 'would recommend to the Board that the compromise position appears to be workable. On the basis of the staff recommendation, it was moved by Member Boneysteele and seconded by Member Dalton, that the Real Property Agreement with pinebrook Partners, Job 1529, Parcel 1, Lafayette area, be approved subject to the installation of the foundation of the building adjacent to the right of way to a depth that will protect the building in the event that future excavation is required, granting of additional easement rights to provide room in the event future excavation is required, and incorporating CPI escalation clause in the agreement relating to the $3,000 limit on future liability; the President of the District Board of Directors and the Secretary of the District be authorized to execute and record said Real Property Agreement; and Resolution No. 90-075. be adopted to that effect. Motion unanimously approved on the following roll call vote: AYES: Members: Boneysteele, Dalton, Clausen, Rainey, Carlson NOES: Members: None ABSENT: Members: None At this time, President Carlson reverted to the order of the agenda. 3. HEARINGS a. CONDUCT A PUBLIC HEARING ON THE DRAFT FISCAL YEAR 1990-1991 CAPITAL IMPROVEMENT BUDGËT (CIB). APPROVE THE DRAFT CIB FOR INCLUSION IN THE FISCAL YEAR 1990-1991 DISTRICT BUDGET. AND AUTHORIZE $21.438.000 FROM THE SEWER CONSTRUCTION FUND Mr. Dolan, General Manager-Chief Engineer, stated,that the draft Fiscal Year 1990-1991 Capital Improvement Budget (CIB) was reviewed by the full Board at a lengthy workshop and by the Board Capital Projects Committee. Amendments were made in accordance with the Board's direction. At 4:56 p.m. President Carlson opened the public hearing to receive public comment regarding the proposed Fiscal Year 1990-1991 Capital Improvement Budget. There being no comments, the public hearing was closed. Mr. Jarred Miyamoto-Mills, Senior Engineer, stated that approximately 1,500 brochures and notices of this public hearing were sent. One telephone call was received from Caltrans. They had no comment. It was moved by Member Clausen and seconded by Member Dalton, that the draft Capital Improvement Budget be approved for inclusion in the 1990-1991 District Budget; and that $3,200,000 be authorized for the Treatment Plant Program, $10,894,000 be authorized for the Collection System Program, and $7,344,000 .be authorized for the General Improvements Program, for a total of $21,438,000 from the Sewer Construction Fund. Motion unanimously approved on the following roll call vote: 06, 21,- 9:'O,,~ 119 AYES: Members: Clausen, Dalton, Boneysteele, Rainey, Carlson NOES: Members: None Members: None 4. BIDS AND AWARDS ABSENT: a. AUTHORIZE AWARD OF CONTRACT TO MONTEREY MECHANICAL COMPANY FOR CONSTRUCTION OF SLUDGE BLENDING PROJECT. DISTRICT PROJECT 20080 This item was taken out of order earlier in the agenda. b. CONSIDER RESPONSIVENESS OF DALTON CONSTRUCTION'S BID TO CONSTRUCT M-2 PARALLEL FORCE MAIN. DP 4610 AND CONSIDER AWARD OF CONSTRUCTION CONTRACT TO LOWEST RESPONSIVE BIDDER; AUTHORIZE EXECUTION OF AGREEMENT WITH CAMP DRESSER & McKEE This item was taken out of order earlier in the agenda. 5. CONSENT CALENDAR This item was taken out of order earlier in the agenda. 6. SOLID WASTE a. ADOPT A RESOLUTION AUTHORIZING VALLEY WASTE MANAGEMENT TO CONDUCT AN AUTOMATED GARBAGE/YARD TRIMMINGS COLLECTION ÞILOT PROGRAM Mr. Dolan, General Manager-chief Engineer, stated that a position paper describing the program has been provided to the Board. There may be some complications with regard to the green waste and composting operation which will be addressed during implementation. Mr. Ron Proto, General Manager of Valley Waste Management, reported that the Town of Danville approved the Automated Garbage/ Yard Trimmings Collection pilot Program at their Council meeting on . June 19, 1990. Mr. Proto stated that Valley Waste Management is actively trying to secure 32 gallon containers for the program but there is still concern that the containers have not been tested with the automated collection mechanism. It is hoped that this question can be resolved soon. Mr. Proto stated that there is significant interest in grinding yard trimmings for mixing with cover material at the landfills. The California Integrated Waste Management Board def ini tion of cover material is causing some problems. A presentation will be made to the California Integrated Waste Management Board and a variance allowing its use will be requested. Other alternatives are being investigated as well. Board discussion followed concerning the use of composted material for daily cover at the landfill, and the scope and estimated cost of public information for this program. Member Boneysteele stated that he was in favor of going forward with the pilot program and adoption of the proposed resolution; but in so doing, he asked that the minutes reflect that he does not agree with the paragraph in the resolution that states that landfill disposal fees are beyond the regulatory control of the Central Contra Costa Sanitary District. It was moved by Member Rainey and seconded by Member Dalton, that Resolution No. 90-074 be adopted, authorizing Valley Waste Management to conduct a six-month automated garbage collection pilot program in the Town of Danville and a green waste collection pilot program throughout the Valley Waste Management service area, commencing in September 1990. Motion unanimously approved on the following roll call vote: 06 2 1, 9 0:., 120 AYES: Members: Rainey, Dalton, Boneysteele, Clausen, Carlson NOES: Members: None ABSENT: Members: None 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 6. 52 percent across the board rate increase and Orinda-Moraga Disposal, service, Inc. has requested a 21.34 percent across the board rate increase. Pleasant Hill Bay Shore Disposal did not submit a rate application. Staff analyses have been completed and submitted to the Board of Directors and the affected cities. Comments from City Councils have been requested for the Board's consideration at the July 12, 1990 public hearing. Mr. Funasaki reviewed the common issues to both rate applications. The major issue is the Acme Landfill closure and post-closure cost assessments. Valley Waste Management included the annual assessment in the rate application. Orinda-Moraga Disposal Service did not, but staff included it in the staff analysis as a separate item for Board consideration. . In addition to the closure and post-closure cost assessments, the maj or issues relating to the Valley Waste Management rate application are intercompany charges equal to one percent of gross revenues for a management fee and one percent of gross revenues for a corporate services and development fee. Intercompany charges in the 1988-1989 rate application of two percent of gross revenues were disallowed. Intercompany charges were not included in the 1989-1990 rate application. In 1988-1989, Price Waterhouse did a review and concluded, that approximately three-quarters of the charges were supportable for services at the regional and corporate levels. Valley Waste Management contends that significant savings were achieved because of these services. The closure cost assessment and intercompany charges have been segregated from operating expenses and the effect on the rate adjustment calculation has been presented in a separate attachment. Mr. Funasaki stated that the staff proposal' for Valley Waste Management would be to defer approval of the closure and post-closure cost assessment until the County program is implemented and consider authorizing a rate increase in the 1990-1991 rate period at the beginning of a quarter. If there is a rate increase at the interim transfer station, staff would recommend that the Board consider authorizing a rate change within the 1990-1991 rate year. Staff would recommend that the Board approve inclusion of the $232,000 of intercompany charges in the 1990-1991 rates. Intercompany charges should be reviewed each time the rate application is submitted and measurable savings should be shown by the collector. Mr. Funasaki proceeded to the rate application of Orinda- Moraga Disposal Service, Inc. The District approved the request for consent to assignment of the franchise agreement to W. Douglas Lomow, et al on May 31, 1990. In granting the assignment, the Board indicated it was not committed to approving any of the recovery of costs by Mr. Lomow. Under the terms of the purchase agreement certain assets will be retained by the previous owner and leased by the new company. A 21 percent increase in rates based on a 93 percent operating ratio has been requested. This increase includes labor expenses related to the acquisition. These were excluded in the staff analysis. Lease expense for trucks and equipment was replaced by depreciation expense following the District's usual practice of capitalizing leased equipment. The environmental contingency was not included in the staff analysis. And finally, the effect of the closure and post-closure cost assessment has been presented in a separate attachment. . Mr. Funasaki reviewed the effect of these major issues on the rate application as set forth in the staff analysis. Mr. Funasaki 06 ~ 1 ' , Q :O'~: ' ; ~ ..,. fJ 121 recommended that the Board defer action on the closure and post- closure cost assessment; and if the County imposes the assessment, a rate increase during the 1990-1991 rate period could be con~idered. Staff would recommend that funding for the environmental contingency not be included in the collection rates. Mr. Funasaki stated that at the July 12,1990 public hearing, the following actions will be taken: 1) Set the 1990-1991 refuse collection rates for Valley Waste Management and Orinda-Moraga Disposal Service, Inc.; Consider restructuring of 1990-1991 collection rates for all three collectors; and 2) 3) Set the incremental commercial recycling charge. Board discussion followed concerning noticing a public hearing to consider restructuring of Pleasant Hill Bay Shore Disposal collection rates. It was the consensus of the Board that restructuring of Pleasant Hill Bay Shore Disposal rates will not be considered at this time. Following discussion, President Carlson thanked Mr. Funasaki for the very informative presentation. 7. ENGINEERING a. RECONSIDER APPROVAL OF A REAL PROPERTY AGREEMENT WITH PINEBROOK PARTNERS. JOB 1529 - PARCEL 1. LAFAYETTE AREA This item was taken out of order earlier in the agenda. 8. CORRESPONDENCE a. RECEIVE LETTER OF RESPONSE FROM CONTRA COSTA COUNTY REGARDING CENTRAL CONTRA COSTA SANITARY DISTRICT'S PROPOSAL TO PREPARE THE WASTE CHARACTERIZATION AND THE HOUSEHOLD HAZARDOUS WASTE COMPONENTS OF THE INTEGRATED WASTE MANAGEMENT PLAN FOR THE UNINCORPORATED CENTRAL COUNTY AREA The Board discussed the response from Contra Costa County to the District's proposal to prepare the waste characterization and household hazardous waste components of the Integrated Waste Management Plan for the unincorporated central county area. Member Rainey suggested that a letter or presentation on this subject be made to the AB 939 Task Force since they have responsibility for coordination this work. Staff agreed. 9. APPROVAL OF MINUTES a. MINUTES OF MAY 31. 1990 It was moved by Member Boneysteele and seconded by Member Clausen, that the minutes of May 31, 1990, be approved as presented. The motion was approved with Member Rainey abstaining because she was not present at the meeting of May 31, 1990. b. MINUTES OF JUNE 8. 1990 It was moved by Member Boneysteele and seconded by Member Clausen, that the minutes of June 8, 1990, be approved as presented. There being no objection, the motion was unanimously approved. 10. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED JUNE 21. 1990 Member Boneysteele, member of the Budget and Finance Committee, stated that he and Member Dalton reviewed the expenditures and found them to be satisfactory. ,06 2"1 , . 90 122 It was moved by Member Boneysteele and seconded by Member Dalton, that the Expenditure List dated June 21, 1990, including Self-Insurance Check Nos. 100449-100450, Running Expense Check Nos. 53497-53794, and Sewer Construction Check Nos. 8356-8404, be approved as recommended. , unanimously approved. There being no objection, the motion was 11. BUDGET AND FINANCE a. RECEIVE MAY 1990 FINANCIAL STATEMENTS Mr. Walter Funasaki, Finance Officer, reviewed the results of operations and maintenance for the month of 'May 1990, noting that expenses were $130,000 greater than budget, representing a 6.4 percent unfavorable variance. 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 7.658 percent to 9.410 percent. The latest interest rate as of May 31,1990, was 8.858 percent. The average yield for the LAIF account through April 1990, 8. 497percent. President Carlson declared that the May 1990 Financial Statements were duly received. b. APPROVE BOARD RESOLUTION TO ADOPT THE 1990-1991 OPERATIONS AND MAINTENANCE. SELF~INSURANCE FUND. PERSONNEL. EQUIPMENT. AND CAPITAL IMPROVEMENT BUDGETS. AS COMPROMISING THE 1990-1991 DISTRICT BUDGET Member Clausen suggested that the procedure for adopting all the District budgets by one resolution be reviewed. It may be more appropriate to have separate resolutions for each component of the budget. It was moved by Member Boneysteele and seconded by Member Rainey, that Resolution No. 90-076 be adopted, adopting the 1990- 1991 Operations and Maintenance, Self-Insurance Fund, Personnel, Equipment, and Capital Improvement Budgets, as comprising the 1990- 1991 Central Contra Costa Sanitary District Budget. Motion approved on the 'following roll call vote: AYES: Members: Boneysteele, Rainey, Dalton, Carlson NOES: Members: Clausen ABSENT: Members: None It was noted for the record, that Member Clausen had voiced his opposition to increasing staffing levels at previous Board meetings. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 13. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1) Mr. Dolan, General Manager-Chief Engineer, stated that as discussed with the Board at a previous Board meeting, a solid waste brochure has been drafted for the Board's consideration and input. Mr. Dolan distributed the proposed brochure and asked that Board Members call him with any comments they may have. 2) Mr. Dolan stated that the BOP DROP" household,hazardous waste collection event, held on June 9,1990, was very successful. It may be necessary for the District to rethink the scope of the household hazardous waste program we are planning. Mr. Dolan distributed the statistics of the June 9 BOP DROP. 06 21 ." 9.0 123 3) Mr. Dolan announced that the trial use of recycled paper for copy paper and computer paper applications was successful. The cost of the recycled paper is coming down, so the $4,500 premium budgeted for r~cycled paper may be more than needed. 4) The District is currently advertising for emergency generators for the pumping stations. The estimated cost is $70,000. . 5) Mr. Dolan announced that the District received a letter from Mr. Jack Lewis dealing with a matter that is under litigation. Mr. Lewis wanted to appeal the matter to the Board of Directors. Unless the Board directs otherwise, staff will advise Mr. Lewis that this matter will not be calendared on a Board agenda since it concerns pending litigation. b. COUNSEL FOR THE DISTRICT Mr. Kenton L. AIm, Counsel for the District, stated that at a previous Board meeting, the Board directed that some work be done on issues relating to Acme closure costs. Most of that work has been completed. A meeting was held with a representative from the County Counsel's office in an attempt to coordinate efforts with the county. The County Counsel's office has not completed their work on this. If their input is not received in a timely manner, Mr. AIm stated that he will communicate his findings to the Board without the benefit of County Counsel's thoughts on this subject. c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS Member Rainey reported that the Recycling and Household Hazardous Waste Advisory Committee meeting originally scheduled for June has been put off until August 1990. Member Clausen reported that he has asked Member Rainey to represent him at a meeting with Browning Ferris Industries and Waste Management, Inc. on June 28, 1990. 14. ANNOUNCEMENTS None 15. CLOSED SESSION None 16. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 17. ADJOURNMENT There being no further business to come before the Board, President Carlson adjourned the meeting at the hour of 6:40 p.m., to reconvene at 3 p.m. on Thursday, July 12, 1990, for Adjourned Regular Board Meeting. 1ud1L - President of the Board of Directors Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: /J ( ,~ '- C.ù C'" Se r t ry of the 'Centr Contra Co a Sanitary District, County of Contra Costa, State of California ;, " ' 06 21 9(j