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HomeMy WebLinkAboutBOARD MINUTES 08-02-90 144 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON AUGUST 2, 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 August 2, 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 a. 3. AWARDS AND COMMENDATIONS LETTER FROM MS. CARL YNN OTIS COMMENDING CSO EMPLOYEES BOB COLON. BOB HODGES. CHRIS KEITH. AND CLAUDE ODOM AND CSO SUMMER HELP DAN DAWSON AND MIKE FLORES FOR THEIR WORK ON BERKELEY AVENUE IN ORINDA ' Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that staff is pleased to pass this letter of commendation from Ms. Carlynn Otis on to the Board, and to provide recognition to the CSO employees and summer help for a job well done. , Member Boneysteele stated that the interface between representatives of the District and the public is the most important public relations a District can have. Member Boneysteele stated that he was very appreciative of the employees for their practical applied public relations efforts. President Carlson requested that CSO employees Bob Colon, Bob Hodges, Chris Keith, and Claude Odom and CSO summer help Dan Dawson and Mike Flores be advised that the Board is very pleased with this letter and appreciates their efforts on behalf of the District. 4. HEARINGS a. CONTINUE THE PROCESS TO ESTABLISH LOCAL IMPROVEMENT DISTRICT (LID) 57: OPEN AND CONTINUE THE PUBLIC HEARING TO THE NEXT SCHEDULED BOARD MEETING Mr. Dolan, General Manager-Chief Engineer, stated that this matter was set for consideration,before staff became aware of Mr. Findleton's concern for the potential lack of vehicular access during LID 57 construction along Brown Avenue. As reported in the Position Paper, Board Member Rainey and District staff are working to resolve this issue. Staff would propose that the public hearing be opened, any persons present who wish to address the Board at this time be heard, and that the public hearing be continued to the next scheduled Board meeting. At 3:04 p.m., President Carlson opened that public hearing to continue the process to establish Local Improvement District 57. Mr. David B. Hop, design engineer for the Mid-Hill Sewer Project (LID 57), distributed a letter requesting that Central Contra Costa Sanitary District participate in LID 57 by providing $30,000. Mr. Hop stated that the request was made because of the "08 0,,2' )90 145 -extremely high costs of the project and the urgent need to provide public sewer to this area. The Board questioned Mr. Hop and District staff with regard to Mr. Hop's request for District financial participation in LID 57, the potential problem with access during construction, and the date a decision must be made to allow construction of the project this fall. Following discussion, it was moved by Member Clausen and seconded by Member Rainey, that the public hearing to continue the process to establish Local Improvement District 57 be continued to the next scheduled Board meeting. There being no objection, the motion was unanimously approved. 5. CONSENT CALENDAR It was moved by Member Rainey and seconded by Member Dalton, that the Consent Calendar, Items a. through e., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. The Agreement relating to Real Property with Maynard Munger, et ux, Job 731, was approved, the President of the Board of Directors and the Secretary of the District were authorized to execute and record said Agreement, and Resolution No.90-097 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: Rainey, Dalton, Boneysteele, Clausen, Carlson NOES: Members: None ABSENT: Members: None b. The execution of the, easement agreement with the Danville Community Development Agency relating to the San Ramon Interceptor Sewer, District Project 4224, was approved, recording was duly authorized, and Resolution No. 90-098 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: Rainey, Dalton, Boneysteele, Clausen, Carlson NOES: Members: None ABSENT: Members: None c. The Pipeline License from Atchison, Topeka, and Santa Fe Railway Company for District Project 4610 at a cost of $400 was approved, the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said Pipeline License, and Resolution No. 90-099 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: Rainey, Dalton, Boneysteele, Clausen, Carlson NOES: Members: None ABSENT: Members: None -08 02 90 146 d. Staff was authorized to secure the services of an arbitrator in accordance with Step Four of the Grievance Procedures in the matter of the appealed grievance of Ms. Beth Maples. Motion unanimously approved on the following vote: AYES: Members: Rainey, Dalton, Boneysteele, Clausen, Carlson NOES: Members: None ABSENT: Members: None e. Resolution No. 90-100 was adopted, confirming that publication of District Ordinance No. 175, establishing the 1990-1991 Sewer Service Charges, has been made. Motion unanimously approved on the following vote: AYES: Members: Rainey, Dalton, Boneysteele, Clausen, Carlson NOES: Members: None ABSENT: Members: None CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 6. SOLID WASTE a. RECEIVE ADDITIONAL INFORMATION TO CONSIDER THE APPLICATIONS FOR REFUSE COLLECTION RATE INCREASES SUBMITTED BY VALLEY WASTE MANAGEMENT AND ORINDA-MORAGA DISPOSAL SERVICE. INC. Mr. Dolan, General Manager-Chief Engineer, stated that on July 12, 1990, a public hearing was conducted to consider refuse collection rate applications. At that time a number of issues were raised including a charge for the use of capital, the profit calculation, and allowable expenses. Since that time, staff has developed an alternative approach that would compensate franchisees on the book value of the net tangible assets of the company. Mr. Walter N. Funasaki, Finance Officer, discussed the proposed Capital Use Charge and reviewed the computation of allowable profit computed at net of Capital Use Charge to develop an annual average profit per customer as set forth in the Position Paper. Mr. Funasaki reviewed the Valley Waste Management rate adjustment calculation forecasted for the fiscal year ending June 30, 1991 and indicated that a 2.87 percent increase in revenue would be required over a 12-month period, or 3.13 percent over an 11-month period. Mr. Funasaki stated that a commercial recycling revenue increment for Valley Waste Management has been estimated to be $1.35 per single commercial can over and above the rates to be set by the Board on an across~the-board basis. At the July 12, 1990 hearing, the Board chose the three year p,hase-in option for implementing the uniform rate structure for residential service. It is recommended that the restructuring of commercial rates be considered in the future after the commercial recycling program has been implemented. Member Rainey asked when the savings were realized in connection with the intercompany charges: Mr. Funasaki stated that the supporting material provided by Valley Waste Management shows the savings or reductions in insurance rates occurred since the acquisition by Waste Management. The savings were multi-year. The savings have been passed on to the public in effect by virtue of expenses being forecasted at the lower premiums currently being paid. 08 02,90 147 The one percent management fee was discussed. President Carlson stated that the fee was reasonable and a reimbursement of the costs necessary to sustain the operation and maintain the savings. Member Rainey stated that it was hoped by having ,a large company as the franchisee, savings would be realized and passed on to the ratepayers. Mr. Kenton L. Aim, Counsel for the District, stated that he was asked to review the issue of intercompany charges for another client. The conclusion reached'was that there is no law ,in the State of California that either provides specifically for this type of allowance or prevents it. The issue is really good faith and fair dealing. The Public Utilities Commission has looked at the issue of intercompany charges and authored an opinion in which some intercompany charges were allowed and some were disallowed. Those allowed were where general benefits were received by local ratepayers by being served by the large company. Examples of intercompany charges not allowed were activities for stockholders and board activities. Mr. Dolan stated that the last time the issue of intercompany charges was discussed, the Board stated that the intercompany charges must be justified and would be reviewed and examined each year they were requested. Member Rainey cautioned the use of the same average profit per customer in future years for different franchisees where different economies of scale may be realized. Mr. Stephen Minton, 3471 Blackhawk Road, Lafayette, addressed the Board on behalf of the City of Lafayette. Mr. Minton distributed and reviewed a letter from Lafayette Mayor Richard F. Holmes. Receipt of this correspondence was acknowledged and by reference incorporated in the minutes. Mr. Minton urged that the full flat rate per can for residential rates be implemented immediately rather than phased in over a three- year period. If a problem is created by implementing the uniform rate immediately, it is recommended that relief be given to the franchisee or any windfall profits recovered. On behalf of the Lafayette City Council, Mr. Minton expressed concern with the precedent- setting nature of some of the requests of Orinda-Moraga Disposal Service, Inc. Mr. Minton requested that the windfall profits of Valley Waste Management from the 1989- 1990 rate year be recovered. In closing, Mr. Minton requested that consideration of restructuring of rates be tabled to allow more time for study by interested parties. Member Rainey asked Mr. Minton's opinion of a monthly billing rather than quarterly. Mr. Minton stated that he had no opinion and he could not express an opinion for the Lafayette City Council since they had not been asked. Member Clausen stated that he received a telephone call from a ratepayer indicating that the second can user was not being subsidized by the single can user. In fact, it costs less to pick up a second can at one house. Mr. Minton agreed, but stated that the cost of pick-up is becoming a decreasingly smaller portion of the total cost. President Carlson stated that reducing the number of second cans picked up would save volume in the truck allowing one truck and crew to serve more residences. This would save substantially in equipment, personnel, and transportation costs. Member Rainey stated that she intended to ask the Board to put off the decision on implementation of the uniform rate because of all the changes going on now in the solid waste area. The ratepayer is continually burdened with increases in costs without alternative means of disposal until programs such as the composting program and plastics recycling program are implemented. Mr. Minton agreed that the cost of collection is going to continue to increase. However, the uniform rate should be implemented now to emphasize the need for recycling. Mr. Ronald J. Proto, General Manager of Valley Waste Management, stated with the understanding that the rate adjustment calculation set forth in Attachment I-A to the Position Paper does not include the incremental revenue for the commercial recycling program, that Valley Waste Management is basically in agreement with the staff recommendation. In response to a question from President Carlson, Mr. Proto stated that the staff proposal for calculation of profit is reasonable at this time. It is not unusual to throw out the high and low figures when calculating an average. Mr. Landa, Controller for Valley Waste Management, has reviewed the calculations and has indicated that they , ",;0'8 ;:"" 0 2 ' ~': 9 0 148 appear correct and reasonable. In response to questions, Mr. Proto stated that at this juncture, the return on capital seems reasonable. President Carlson commended staff on the excellent job they did in trying to simplify a very complex issue. Member Clausen asked if the Operating Ratio was computed on the basis of the profit calculation presented. Mr. Funasaki stated that it was. An Operating Ratio of 93.7 percent was produced. There being no further comments with regard to the rate increase application of Valley Waste Management, President Carlson requested that Mr. Funasaki proceed with the staff report on Orinda-Moraga Disposal Service, Inc. Mr. Funasaki reviewed the Capital Use Charge calculated for Orinda-Moraga Disposal Service and the allowable profit calculation under the revised rate adjustment method as set forth in Attachmel1t II-A to the Position. Paper. A 12.59 percent increase in revenue would be required over a 12-month period, or a 13.73 percent increase in revenue over an 11-month period. Mr. Funasaki reviewed the additional expense items not included in the staff analysis and the staff recommendation with regard to each item. Mr. Funasaki stated that the commercial recycling revenue increment requested by Orinda-Moraga Disposal is $43,000 or approximately $1.40 per single commercial can over and above the rates to be set by the Board on an across-the-board basis. Mr. Funasaki reviewed a table showing the effect of the residential rate restructuring alternatives and stated that staff will compute the resultant rates following the Board's action. Mr. Peter Brethauer, Accountant for Orinda-MoragaDisposal Service, Inc., addressed the Board commenting on the method of computing profit as it applies to Orinda-Moraga Disposal. Mr. Brethauer stated that although the new approach is favorable for companies with adequate profit histories, those with inadequate profit in the past will remain unprofitable. This is true in the case of Orinda-Moraga Disposal. Consequently, District staff used the profit per customer for Orinda-Moraga Disposal that was developed for Valley Waste Management. Mr. Brethauer contended that was inequitable. Mr. Brethauer stated that the profit per customer calculation does not take into consideration factors like economies of scale, terrain, or percentage of commercial revenue. Mr. Brethauer requested that rather than using the profit. per customer calculation for Orinda-Moraga Disposal, that the Board use the 93.7 percent Operating Ratio calculated for Valley Waste Management to compute the revenue requirement for Orinda-Moraga Disposal Service. Mr. Brethauer distributed a handout showing those calculations. Mr. Dolan stated that the Operating Ratio method which Mr. Brethauer was requesting was used in past years in which Orinda-Moraga Disposal failed to achieve a profit. Mr. Dolan explained the profit per customer calculation and the impact on Orinda- Moraga Disposal. Mr. Brethauer stated that he understood the calculation, but requested that the Operating Ratio method be used at this time. Mr. Ken Little, Attorney for Orinda-Moraga Disposal Service, Inc., addressed the Board with regard to the additional expense items not included in the staff analysis and those recommended for disallowance. Mr. Little stated that the route audit should be done and would likely pay for itself. In addition, Mr. Little urged that the unrecovered recycling expense be allowed because of the unusual circumstances associated with the implementation of the program. Mr. Douglas Lomow, of Orinda-Moraga Disposal Service, Inc., stated that in the long term he supported the move to a uniform per can rate structure, but with all the changes occurring at this time it would seem more pr'udent to defer implementation of the uniform rate for a year and undertake a community education program on the changes coming. Mr. Lomow stated that the average profit per customer method of calculating profit is a step in the right direction, but when a company has a much larger commercial base, the numbers differ substantially. Mr. Lomow requested that the Operating Ratio method of calculation set forth in the handout distributed by Mr. Brethauer be used. .,08. .02 90 149 Mr. George Navone, of Orinda-Moraga Disposal Service, Inc., recapped the presentations of Messrs. Brethauer, Little, and Lomow. Mr. Navone stated that it has been a pleasure to work with the District through the years and he thanked the Board for their consideration. In response to a question from Member Rainey, staff indicated that no input was received from either the City of Orinda or the Town of Moraga. There being no further 'comments, President Carlson returned the matter to the Board for deliberation, stating that the issues with regard to Valley Waste Management have been resolved. The additional expense items from Orinda-Moraga Disposal Service, Inc., not included in the staff analysis, should be considered. Discussion followed concerning the additional expense items submitted by Orinda- Moraga Disposal Service, Inc., not included in the staff analysis. In response to a , question concerning the unrecovered recycling expense of $104,000, Mr. Funasaki stated that the $104,000 figure includes unrealized profit. Mr. Funasaki stated that in his computation, avoided disposal expenses were considered, and a lesser figure of $68,000 was developed. Member Rainey requested that the record clearly reflect that the decision on the environmental contingency reserve requested is being deferred, not the $150,000 estimated expense. The timeliness of submission of the additional expense items was discussed. Member Rainey stated that a Board policy decision had been made to eliminate costs associated with the acquisition of the business. Member Rainey stated that she would have real concern if these additional expenses submitted on July 27, 1990, were ways of recovering acquisition costs. There being no further discussion, President Carlson stated that he would entertain a motion with regard to the additional expense items not included in the staff analysis for Orinda-Moraga Disposal Service, Inc. It was moved by Member Clausen and seconded by Member Rainey, that the request of Orinda-Moraga Disposal Service, Inc., for an additional expense of $150,000 for an environmental contingency reserve be denied. There being no objection, the motion was unanimously approved. It was moved by Member Dalton and seconded by Member Clausen, that the request of Orinda-Moraga Disposal Service, Inc., for acquisition-related costs in the amount of $140,000 be denied. There being no objection, the motion was unanimously approved. Following discussion, it was moved by Member Clausen and seconded by Member Dalton, that the request of Orinda-Moraga Disposal Service, Inc., for an additional expense of $30,000 for a route audit be approved. There being no objection, the motion was unanimously approved. It was moved by Member Rainey and seconded by Member Dalton, that the request of Orinda-Moraga Disposal Service, Inc., for an additional expense of $22,000 for customer relations be denied. There being no objection, the motion was unanimously approved. With regard to the unrecovered recycling expense, Member Clausen stated that because this was a unique item imposed by the District and because the District was involved in estimating the cost of the program, the collector should recover expense, but not profit. ' It was moved by Member Clausen and seconded by Member Dalton, that Orinda- Moraga Disposal Service, Inc., be granted unrecovered recycling expense of $68,000. There being no objection, the motion was unanimously approved. Following discussion, it was moved by Member Rainey and seconded by Member Clausen, that the request of Orinda-Moraga Disposal Service, Inc., for facilities expense of $18,000 be denied. There being no objection, the motion was unanimously approved. ..1. ;O'8<'.'O2:;..:~,90 150 It was moved by Member Rainey and seconded by Member Dalton, that the request of Orinda-Moraga Disposal Service, Inc., for equipment expense of $18,000 .be denied. There being no objection, the motion was unanimously approved. It was moved by Member Dalton that the request of Orinda-Moraga Disposal Service, Inc., for staff increase of $36,000 be approved. The motion died for lack of a second. . It was moved by Member Rainey and seconded by Member Clausen, that the request of Orinda-Moraga Dis~osa.l Service, Inc., for staff increase of $36,000 be denied. There being no objection, the motion was unanimously approved. It was moved by Member Rainey and seconded by Member Clausen, that the request of Orinda-Moraga Disposal Service, Inc., for supervisors vehicle expense of $12,000 be denied: There being no objection, the motion was unanimously approved. Following discussion of the staff recommendations and the differences between the Orinda-Moraga Disposal and Valley Waste Management companies, it was moved by Member Rainey and seconded by Member Clausen, that the inclusion of a Capital Use Charge in the calculation of the rate adjustment be approved. There being no objection, the motion was unanimously approved. It was moved by Member Rainey and seconded by member Clausen, that the use of 8.0 percent interest and the Net Tangible Fixed Asset be confirmed as the basis for the Capital Use Charge. There being no objection, the motion was unanimously approved. It was moved by Member Clausen and seconded by Member Rainey, that the use of a Net Profit sum exclusive of Capital Use Charge be approved for calculation of the rate adjustment. There being no objection, the motion was unanimously approved. It was moved by Member Clausen and seconded by Member Dalton, that, after taking into consideration historical profit levels, quality of service, and other factors, that a Net Profit of $574,000, based on the average of $11.87 per customer per year, be approved for Valley Waste Management, effective August 1, 1990, and Resolution 90-101 be adopted to that effect. The motion was approved with Member Boneysteele voting no. It was noted for the record that Member Boneysteele voted no after considering the responsiveness of the franchisee, the degree of control the franchisee has over disposal charges, collection cost control, quality of service, and other related factors as recommended by staff in the second paragraph of Page 3 of 32 of the Position Paper. It was moved by Member Clausen and seconded by Member Dalton, that after taking into consideration historical profit levels, quality of service, and other factors, that a Net Profit of $202,000 be approved for Orinda-Moraga Disposal Service, Inc., effective August 1, 1990 and Resolution No. 90-102 be adopted to that effect. There being no objection, the motion was unanimously approved. It was moved by Member Rainey and seconded by Member Dalton, that staff be directed to include the sum of $187,000 or $1.35 per single commercial can as an incremental adjustment of the Valley Waste Management commercial rate to cover commercial recycling expenses. There being no objection, the motion was unanimously approved. It was moved by Member Rainey and seconded by Member Dalton, that staff be directed to include the sum of $43,000 or $1.40 per single commercial can as an incremental adjustment of the Orinda-Moraga Disposal Service, Inc., commercial rate to cover commercial recycling expenses. There being no objection, the motion was unanimously approved. It was moved by Member Rainey and seconded by Member Dalton, that restructuring of residential rates to a uniform per can rate be deferred until better options are available for recycling materials such as plastics. :. "08 : ;O2'~.::90 151 President Carlson spoke in favor of implementing a uniform per can rate to eliminate the subsidy of second and third can users by single can users. Member Clausen spoke in favor of implementing a uniform per can rate over a three-year period. Member Rainey expressed concern about raising the cost of the second can for large families with several children since there is currently no feasible way to recycle milk and water containers. As recycling options become available, there will be a natural attrition. There being no further discussion, President Carlson requested a roll call vote on the above motion to defer restructuring of residential rates until better options are available for recycling. The motion was approved on the following roll call vote: AYES: Members: Rainey, Dalton, Boneysteele NOES: Members: Clausen, Carlson ABSENT: Members: None Following further discussion, it was moved by Member Boneysteele and seconded by Member Clausen, that the motion to defer restructuring of residential rates to a uniform per can rate be reconsidered. Motion approved on the following roll call vote: AYES: Members: Boneysteele, Clausen, Carlson NOES: Members: Dalton, Rainey ABSENT: Members: None It was moved by Member Boneysteele and seconded by Member Clausen, that the Board conclusion that the residential rates be restructured to a uniform per can rate over a three-year period be confirmed. Motion approved on the following roll call vote: AYES: Members: Boneysteele, Clausen, Dalton, Carlson NOES: Members: Rainey ABSENT: Members: None For the benefit of the refuse collectors and other interested persons in the audience, Member Clausen announced that he planned to make a statement later in the meeting When Counsel for the District reports on discussion with County Counsel concerning Acme closure costs. President Carlson commended Mr. Funasaki and his staff for the excellent work they did on the refuse collection rate increase applications. President Carlson declared a recess at the hour of 5:52 p.m., reconvening at the hour of 6:01 p.m., with all parties present as previously designated. 7. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED AUGUST 2. 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. It was moved by Member Boneysteele and seconded by Member Dalton, that the Expenditure List, dated August 2, 1990, including Self-Insurance Check Nos. 100461- 100462, Running Expense Check Nos. 54401-54670, Sewer Construction Check Nos. 8492-8537, and Payroll Check Nos. 20829-21143, be approved as recommended. There being no objection, the motion was unanimously approved. . f O,8,~: -02. .~90 152 8. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 9. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1) Mr. Dolan, General Manager-Chief Engineer, introduced Ms. Debbie Ratcliff, who was hired recently as Accounting Supervisor. 2) Mr. Dolan reported that the District has been working with Contra Costa Water District on projects which will supply reclaimed water to the County corporation yard and Contra Costa Topsoil. A nursery is interested in locating on District property and would use reclaimed water as well. Sanitary and Water District staff have prepared a scope of work for a larger scale urban landscaping project. Mr. Dolan stated that a meeting will be scheduled with the Water District in the near future to discuss the overall water reclamation effort. Staff will report back to the Board following that meeting. 3) Mr. Dolan described the status of discussions and recent correspondence with Acme Fill concerning their leachate. Copies of the correspondence was previously provided to the Board. Within the District staff, Planning Division Manager Jim Kelly has favored the concept of providing serviC?e to Acme even though there are numerous risks to the District including treatment process problems, regulatory problems, and long- standing difficulties dealing with Acme on a wide variety of issues. Nevertheless, in an effort to help protect the environment and minimize the cost of closure and post-closure to the public, the District has tried to work cooperatively with Acme. Mr. Dolan proposed that staff respond to Acme requesting a firm proposal from them. Unless the Board objects, staff level discussions will continue with Acme on this matter. The Board voiced no objection. Board and staff discussed the nature of the Acme leachate and its impact on the treatment process and water reclamation. The Board discussed the need for assurances of financial capability on the part of Acme relative to having the District provide service to Acme. 4) Mr. Dolan reported that Board Members Rainey and Clausen, Deputy General Manager Paul Morsen, and District Counsel Kent Aim have been working on a solid waste Joint Powers Agreement (JPA) with the cities of San Ramon and Walnut Creek. The JPA is now in final draft and should be calendared for Board consideration at the next Board meeting. Mr. Morsen reported that the San Ramon City Council will consider the document at their meeting on August 28, 1990, and the City of Walnut Creek will consider the matter at their meeting of September 11, 1990. 5) Mr. Dolan announced that a newspaper article recently appeared in which the District's risk priority number was reported to be 1038. As reported to the Board previously, the District's figure was calculated to be 299. The 1038 figure, first produced by CH2M Hill, was checked and found to be in error. CH2M Hill corrected the figure and advised the Bay Area Air Quality Management Board of the correction. The Air Board gave the newspaper the wrong figure. The newspaper has been advised of the error. 6) Mr. Dolan announced that a sizable package of documents was received from Pleasant Hill Bay Shore Disposal on Tuesday, July 31, 1990, on the transfer of ownership/breach of contract. It will take some time to review this package. 7) Mr. Dolan announced that Assembly Bill 3144 (Filante), the Underground Services Alert bill, is dead for this year. Filante's staff is planning to bring the issue back next year. District Counsel Kent Aim and Collection System Operations Department Manager John Larson did a great job in representing the District's interests and engaging the aid of the cities. ' 8) Program. Mr. Dolan distributed a brochure on the CSO Affirmative Action Trainee :08' 02 :90 153 9) Mr. Dolan displayed the plaque received for participation by the District in the Fifth Annual Bocce Ball Battle, a benefit for the American Cancer Society. b. COUNSEL FOR THE DISTRICT Mr. Kenton L. AIm, Counsel for the District, reported that he looked into some of the issues relating to the County proposal to set up a public trust for Acme closure and post-closure costs as requested by the Board. The public trust would be operated by the County and funded through a surcharge on collection rates. The matter was discussed with County Counsel. No agreement or resolution was reached with regard to legal issues raised. County staff has now sent a new proposal to the Board of Supervisors calling for an agreement with Acme for pledge of revenues from the transfer station and landfills rather than a surcharge on the ratepayers. The Board of Supervisors will consider this proposal on August 14, 1990. Mr. Aim stated that he would provide a written summary of his findings and discussion with County Counsel to the Board of Directors. Member Clausen stated that he asked the collectors to stay for this presentation because he intended to make a statement. Member Clausen stated that he is convinced that there is a lack of legal authority in the County to collect closure costs from transfer station ratepayers. Member Clausen stated that he will not vote to pass through closure costs to the ratepayers until there is an acceptable legal opinion or Superior Court decision requiring this District to pass through such costs. He suggested collectors be prepared to litigate the issue. c. SECRETARY OF THE DISTRICT 1) Ms. Joyce E. Murphy, Secretary of the District, distributed the Training/Conference Summary for April through June 1990. 2) . The date of the second Board meeting in August was discussed. Because of the conflict with the Annual CASA Work Conference and installation of the Meeting Room HV AC system, the Board confirmed their previous decision to hold the next Board meeting at 3 p.m. on Monday, August 13, 1990. d. . BOARD MEMBERS Member Rainey reported that the Board of Supervisors has recommended that a composting task force be created under the purview of the AB 939 Task Force. A Plastics Recycling Task Force is in operation as well. It has been proposed that all plastics be banned from the wastestream by the end of the year. Plastics comprise nine percent of the total wastestream. High density plastics represent only 1.8 percent of the wastestream. Member Rainey requested that the collectors franchised by the District estimate the cost of removing plastics from the wastestream. Member Rainey will make a presentation on this subject before the Board of Supervisors on August 14, 1990. 10. ANNOUNCEMENTS None 11. CLOSED SESSION None 12. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 13. ADJOURNMENT There being no further business to come before the Board, President Carlson adjourned the meeting at the hour of 6:50 p,m., to reconvene at 3 p.m. on Monday, August 13, 1990, for an Adjourned Regular Board Meeting. \".08 >0:2 '~90 154 4tLv i2L-.- President of the Board of Directors Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 08 02,,-9-0