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HomeMy WebLinkAboutBOARD MINUTES 04-03-80 1692 MINUTES OF A REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD APRIL 3,1980 The District Board of the Central Contra Costa Sanitary District convened in a regular session at its regular place of meeting, 1250 Springbrook Road. Walnut Creek, County of Contra Costa, State of California, on April 3, 1980 at 7:30 p.m. President Carlson called the meeting to order and requested the Secretary to call roll. 1. ROLL CALL PRESENT: ABSENT: Members: Member: Boneysteele, Dalton, Campbell and Carlson Stanley Member Stanley arrived at 7:45 p.m. II. APPROVAL OF MINUTES After discussion, it was moved by Member Campbell, seconded by Member Dalton, that the minutes of February 21, 1980 be approved as presented. III. APPROVAL OF EXPENDITURES Member Boneysteele, member of the Budget and Finance Committee, stated that the Committee had reviewed the expenditure lists dated March 20,1980 and found the expenditures to be satisfactory. After discussion it was moved by Member Boneysteele, seconded by Member Dalton, that Running Expense Voucher Nos. 10619 through 10778 inclusive; and Sewer Construction Voucher Nos. 982 through 999 inclusive; be approved. Motion was unanimously approved. IV. HEARINGS 1. PUBLIC HEARING ON REQUESTED RATE INCREASES BY GARBAGE COLLECTION COMPANIES After explanation by Mr. Dolan, General Manager-Chief Engineer (GM-CE), regarding the rate increase requests received and the procedure of the Hearing, President Carlson declared the Hearing open. Mr. Sanford Skaggs, attorney representing Valley, Diablo and Lafayette Disposal Service companies reviewed the respective applications for rate increases and supplemental material describing the companies' position. Mr. Skaggs stated that because of the higher level of service provided, the garbage collection rates charged by these three companies are higher than those of other disposal companies in the Bay Area. The increases requested are 13% for Valley (including Central Valley Waste) and Diablo Disposal Service companies and 19% for Lafayette Garbage Disposal Service. The most notable increase in expenses is in the area of fuel, with an increase of 50% per gallon over last year. Granting the requested amount of increase would result in a 5% profit on gross revenue, which has been the benchmark used by the District. Lafayette's requested 19% rate increase is based on the assumption that its truck yard and truck maintenance will be consolidated with Valley Disposal Service truck yard in Walnut Creek. Mr. Skaggs requested that the rates for Valley Disposal Service and Diablo Disposal Service be consolidated and considered together. It would be preferable to delay the unification of Lafayette Garbage Disposal Service rates with Valley and Diablo because of differences in the commercial rate schedules. A study of these commercial rates will be made this year so that a unified schedule can be presented for future applications. 0 fi), V "1 1693 At the conclusion of Mr. Skaggs. presentation, President Carlson requested Mr. Walter Funasaki, Finance Officer, to review the analysis and offer staff recommendations. Mr. Funasaki stated that the staff analysis of the disposal companies operating expenses consisted of a review of the financial operating results for the last full year and projected expenses for April 1980 through March 1981, the period for which rates increases are being requested. The analysis was focused on determining the reasonableness of the projected operating expenses. Adjustments were made in the analysis presented on March 20 to exclude interest expense and key-man life insurance premiums from operating expense and percentages of rate increase necessary to provide the franchisees a 95% operating ratio were recomputed. The staff analysis covering Valley Disposal, Diablo Disposal and Lafayette Garbage Disposal Service companies indicates that the following percentages of increase are necessary to produce a 95% operating ratio: Valley Disposal Company - 13.0%; Diablo Disposal Service - 9.48%; and Lafayette Garbage Disposal Service - 18.08%. Mr. Funasaki stated that combining the rate structure of the three companies would result in a 13.0% rate increase for each of the franchisees. President Carlson asked if there were any people in the audience wishing to co~nent on the requested garbage rate increases. Mr. Roland Hamilton of Walnut Creek addressed the Board stating that the garden trimming pickup should be cut down because not everyone takes advantage of it, and that those residents requiring the service should pay for it. Also it would appear to be more practical to have the garbage and garden clippings picked up on the same day rather than having it done on two separate days as is the current practice. For the benefit of those in the audience, Member Boneysteele explained that the clipping service originated as a result of the bônon backyard burning of trash imposed~by" tbe:County some years ago. A poll taken at that time determined that the majority of the public wanted the trimming pickup service. Member Dalton stated that he agreed with Mr. Hamilton1s comment and that the trimming pickup service provided is somewhat excessive. Mr. Derek Augood of Danville addressed the Board commenting that, while he is satisfied with the service, he feels the rates are too high. He asked the following questions: (1) how the salaries of the refuse collectors is determined, (2) method used for calculating depreciation of vehicles and equipment and (3) determination of the operating ratio. Mr. Skaggs addressed the questions posed by Mr. Hamilton and Mr. Augood. Insofar as making one trip to pick up both the garbage and the trimmings, Mr. Fiorentino, President of Valley Disposal, is in agreement that a savings could be achieved in that area and Valley Disposal Service proposes to implement that procedure. Mr. Skaggs' responses to t~r. Augood's quest"ions were as follows: (1) the refuse collectors belong to the Teamsters Union and their salaries are established by union contract. (2) The straight line method is used in computing truck depreciation using a 7-10 year life. (3) In regard to the operating ratio, 12%-16% included the interest paid on debt capital of the companies. The 5% margin is the cost of obtaining the money to run the companies. Mr. Funùsaki stated that the District staff made its analysis by focusing on the financial data included in the applications. This analysis is not a result of an audit but is based on a review of projected expenses which have been affected by the labor contract, fuel cost and the general inflation rate. Based on these causal factors, it was determined that the projected expenses were supportable. The District cannot attest to the accuracy of the figures provided by the franchisees but believes that they are reasonable. 0 " ': lL tLì, ")¡ 0 0 1694 President Carlson indicated to Mr. Augood that the District Board is not a party to the wage negotiations conducted between the Teamsters Union and the collectors. The Board has endeavored in the past to be fair in its negotiations concerning rate increases and to approve a rate increase that is viable for all concerned. President Carlson requested that the Board hear Mr. Brethauer's presentation on behalf of OrindalMoraga Disposal Service. Mr. Brethauer stated that OrindalMoraga Service is bound by the same labor union contract as the Valley, Diablo and Lafayette Disposal Service companies, and is requesting a 19% collection service rate increase. Mr. Funasaki advised that an analysis of OrindalMoraga Disposal Services rate application was conducted using the same procedure applied to the Valley, Diablo and Lafayette Disposal Service companies. The analysis disclosed major increases in wages and fuel expenses. At the last Board meeting, it was requested that certain payroll adjustments be made and these are reflected in the updated analysis distributed at this meeting. It does not include any new equipment that the company may be required to purchase, but Mr. Brethauer has indicated that OrindalMoraga Disposal Service anticipates making vehicle purchases in the near future. Mr. Barry Gross, Vice Mayor of the Town of Moraga, advised the Board that a letter had been sent to the District indicating the Town of Moraga's interest in taking over the franchising of garbage collection within its limits. The Town is still studying this matter. He stated that he did not have any specific comments to make regarding the District staff analysis. He indicated that the residents of the Town of Moraga have expressed a desire to have a monthly trimming puckup service, for which they are ready to pay an additional fee. Mr. Gross commented on the projected return on investment and felt that any rate increases should be effective for a two-year period. Member Boneysteele stated that the District staff would be willing to cooperate with the Town of Moraga to provide any available information regarding Orinda/Moraga Disposal Service. He also added that it might be appropriate for the Town of Moraga to submit a letter outlining any requested information. Mr. Gross thanked Member Boneysteele for his consideration. Mr. Dolan, GM-CE, explained the methods and computations used in making the analysis. Board discussion followed wherein Member Boneysteele asked Mr. Funasaki for recommendations regarding OrindalMoraga Disposal Service. Mr. Funasaki replied that based on service levels, the recommenda- tion would be to increase collection rates by the 16.11% indicated by the District staff analysis. There being no further comments, President Carlson closed the Hearing and reconvened the meetjng. Member Dalton proposed that the garden trimming and annual pickups services provided by Valley and Diablo Disposal Service Companies be reduced by 50% and to maintain the same rates. He also proposed that Lafayette Garbage Disposal level of service remain the same, but its rates be brought up to equal Valley Disposal rates. Member Boneysteele stated that it would be appropriate to hold a Hearing prior to making such a change. Member Stanley asked what impact such a change of service would have on the franchisees. Mr. Skaggs replied that the impact is unknown for over a period of time but the franchisees would be happy to comply. Member Dalton commented that a survey as to the public's desired level of service could be made by the franchisees. Board Members agreed with the concept of a survey but felt that it was another issue that could not be considered at this time. Member Campbell commented that a thorough analysis has been made regarding the current service level. A change in the level of service would be a new dimension, and therefore, we cannot agree to a reduction of service at this point. Lafayette is strongly in favor of its current level of service. He suggested that the Board address itself at this time to the issue at hand. (' , " ': h, !" -. ,,~ (Ji c~ 1695 President Carlson stated that if the Board is prepared to take action on the proposed rate increases, a motion should be entertained. After discussion, it was moved by Member Boneysteele, seconded by Member Stanley, that based on the staff analysis which among other things excluded interest from the companies operating ratio, a resolution authorizing a rate increase for Valley Disposal (including Central Valley Waste) and Diablo Disposal of 11.76; Lafayette Garbage Disposal a rate increase of 18.08% and Orinda/Moraga Disposal Service a rate increase of 16.11% be adopted to be effective April 1, 1980 through March 31,1981, with the exception of rates affected by an interim change in the level of service. Resolution No. 80-55. President Carlson called for discussion of the motion prior to taking a vote. After discussion, the motion was carried by the following vote: AYES: NOES: ABSENT: Members: Member: Members: Stanley, Boneysteele, Campbell and Carlson Dalton None Member Boneysteele expressed his appreciation to Mr. Funasaki for the very fine job he did in preparing the analyses, thereby making the work connected with garbage collection rate adjustments easier and the other Board Members concurred. Board and staff discussion followed regarding the Town of Moraga's proposed take over of franchising garbage collection in Moraga and the mentioned change in the level of service, after which it was moved by Member Dalton, seconded by Member Boneysteele, that staff be directed to meet with the Town of Moraga and Mr. Navone of OrindalMoraga Disposal Service to discuss any desired changes in the level of service. Motion was unanimously approved. Discussion followed regarding lowering the level of service in the Valley and Diablo Disposal Service areas. Rate consolidation for Valley, Diablo and Lafayette Disposal Service companies was also discussed, wherein Member Boneysteele recommended that staff study the possibility of effecting these changes and report back to the Board. At 9:48 p.m., President Carlson recessed the meeting. At 10:00 p.m., President Carlson reconvened the meeting and proceeded with the order of the agenda. v. BIDS None. VI. OLD BUSINESS 1. PROPERTY INSURANCE COVERAGE Mr. Dolan, GM-CE, reported that a meeting was held with Schroder Insurance Agency to discuss the reasons for the increase for the District's property insurance coverage. Therein the District was billed $101,000 for that insurance coverage after being quoted an amount of $76,866 in the broker's proposal. Several reasons given by Schroder for the premium increase were reviewed. Discussion followed. After discussion, it was moved by Member Stanley, seconded by Member Dalton, that the District retain the current property insurance policy through June 30,1980 and that payment of the $24,134 balance of the $101,000 premium be authorized; and that the firm of Kaine and McAuliffe be requested to obtain quotations for varying levels of property insurance coverage and retentions for the 1980-81 year. Motion was unanimously approved. 0 Æ,\,.,'i,', Æ.J:. t'" ,J :~"1:\, ; lJJ 1696 0 ~ , L;:ii: 2. APPROVE AGREEMENT WITH MACKINLAY, WINNACKER, MCNEIL, AlA & ASSOCIATES INC., FOR ARCHITECTURAL SERVICES ASSOCIATED WITH NEW OFFICE BUILDING~ DSP 3000 b. AUTHORIZE $100,000 FOR ARCHITECTURAL SERVICES PROVIDED BY MACKINLAY, WINNACKER, MCNEIL AlA & ASSOCIATES, INC., IN CONJUNCTION WITH THE NEW OFFICE BUILDING, DSP 3000 AND OTHER IN HOUSE EXPENSES a. Mr. Dolan, GM-CE, requested that these items be held over until the next meeting due to concerns regarding inadequate specifications and costs in connection with the construction services building. Dr. Clark Weddle, Deputy Chief Engineer, stated that he had met with Mr. Winnacker this morning to discuss these matters and does not recommend signing the contract for the main office building until certain matters are resolved. Board was in agreement with staff's request to hold these items over. 3. BOARD SERVICE AND COMPENSATION Member Dalton requested to have this item deferred to the next meeting. 4. ACCEPT DECISION OF ADMINISTRATIVE LAW JUDGE IN REGARD TO THE ROY JOHNSON CASE After explanation by Mr. Carniato, District Counsel, it was moved by Member Campbell, seconded by Member Dalton, to accept the decision of the Administrative Law Judge regarding the Roy Johnson case. Motion was unanimously approved. 1. VII. NEW BUSINESS ACCEPTANCE OF EASEMENTS AT NO COST TO THE DISTRICT AND ADOPTION OF RESPECTIVE RESOLUTIONS AND AUTHORIZE RECORDING After discussion, it was moved by Member Stanley, seconded by Member Dalton, that the easements as listed be accepted at no cost to the District, respective resolutions adopted and their recordings authorized. Grantor Area Job No. Parcel Res No. -- 2814 7 80-49 3008 ext. 6&7 80-50 2995 6 80-51 3117 ext. 1 80-52 3117 ext. 2 80-53 a. b. c. d. State of California Pacheco Moraga Enterprises Moraga Ernest Eayrs Pleasant Hill David L. Feathers & Lauretta R. Feathers, & Robert J. Aronno & Sarah Aronno Robert J. Aronno & Sarah Aronno, & David L. Feathers & Lauretta R. Feathers Lafayette Lafayette e. Motion was unanimously approved. 2. ACCEPT GRANT DEED FROM CONTRA COSTA COUNTY FOR 1.1 ACRE SITE FOR CONSTRUCTION DIVISION OFFICE NEAR TREATMENT PLANT After explanation by Mr. Dolan, GM-CE, it was moved by Member Boneys~eele, seconded by Member Dalton, that a resolution be adopted acceptlng the grant deed from Contra Costa County, for a parcel adjacent to the water reclamation plant at a cost of $99,320. Resolution No. 80-54. Motion was unanimously approved. O"'~,r C) - (;..) 00 () \.~ 1697 3. Mr. Dolan, GM-CE, suggested that it would be appropriate at this time to discuss the meeting Member Dalton and he had attended at the County Admininistrator's office regarding the disposition of revenue from newly annexed properties. Mr. Dolan commented that the issue is quite complex by virtue of the complications engendered by Proposition 13. Present were representatives from EBMUD, CCCWD, Building Industry Association, Building Trades Council and Oceanic Properties. Problems confronting the special districts were discussed. The conclusion of the meeting was that language be drafted to amend current legislation so that special districts would be included in the distribution of revenue from newly annexed properties. After discussion, it was moved by Member Stanley, seconded by Member Dalton, that authorization for PA 80-10, Walnut Creek Area, PA 80-11, San Ramon Area, 80-12, Danville Area and 80-13, Walnut Creek Area to be included in the next formal annexation to the District. Motion was unanimously approved. 4. AUTHORIZE DISTRICT ENGINEER TO FILE NOTICE OF COMPLETION FOR DSP 2904, DIABLO ROAD, DANVILLE After explanation by Mr. Dolan, GM-CE, it was moved by Member Dalton seconded by Member Campbell, that the GM-CE be authorized to file a Notice of Completion for DSP 2904, Diablo Road, Danville. Motion was unanimously approved. 5. AUTHORIZE DISTRICT ENGINEER TO FILE NOTICE OF COMPLETION FOR DSP 2814 STATE ROUTE 4 (ARNOLD INDUSTRIAL HWY) BETWEEN GRAYSON CREEK AND SOLANO WAY After explanation by Mr. Dolan, GM-CE, it was moved by Member Dalton, seconded by Member Campbell, that the GM-CE, be authorized to file a Notice of Completion for DSP 2814, State Route 4 (Arnold Industrial Hwy) between Grayson Creek and Solano Way. Motion was unanimously approved. 6. PERSONNEL a. AUTHORIZATION TO HIRE PERSONS FOR SEASONAL PROJECTS IN 1980 After explanation by Mr. Dolan, GM-CE, it was moved by Member Stanley, seconded by Mr. Dalton, that authorization to hire a total of 27 persons (including 2 P.I. positions) to work on seasonal projects in 1980 be approved. Motion was unanimously approved. b. EXECUTIVE SESSION TO DISCUSS PERSONNEL MATTERS At 10:48 p.m., President Carlson, called an executive session to discuss personnel matters. At 11:00 p.m., President Carlson closed the executive session and reconvened the meeting. 7. APPROVAL OF BILLS FOR LITIGATION SERVICES After explanation by Mr. Carniato, District Counsel, it was moved by Member Dalton, seconded by Member Camp~ell, that th: statements.dated April 1,1980 for services rendered relatlve to Acme Flll Corporatlon, Fred J. Early, Jr., Co., Roy Johnson, Peterson/Simpson, and Kaiser Industries, totalling $27,565.47, be approved. Motion was unanimously approved. 8. ADDITIONAL BUSINESS ADDED BY SUPPLEMENTAL AGENDA None. 04 ..... O~ Ç"i),.,,' .\ ' , \ fJ ("J '0" :";',' .: ',' ~,~! ' , 1698 VIII. REPORTS 1. GENERAL MANAGER-CHIEF ENGINEER a. Mr. Dolan reported that Central San has filed with the State Solid Waste Management Board a proposal defining the work to be done under the grant offer made to the District for $440,000. The original proposal was structured to provide for a three-year test that would require $3,000,000 to complete. The current proposal provides a reduced level of activity by asking for State funds that are consistent with the grant offer. This project will coordinate with work being done by Metcalf and Eddy. Mr. Dolan complimented Dr. Weddle and Mr. Larson on their joint effort in preparing the proposal. b. The Board authorized President Carlson to send a letter to Mr. Ernest Lasell, Chairman of the Board of the Contra Costa County Water District. The letter is in regard to Joint Studies by the Districts of Water Reclamation Alternatives. Mr. Dolan advised that Culp /Wesner/Culp has been asked to proceed with a previously authorized report on the cost aspects of the reclaimed water proj ect. c. Mr. Dolan called the Board's attention to the Personnel Summary Sheet dated April 2, 1980 as follows: POSITIONS BEING TESTED Construction Clerk Typist I (Written Exam, Saturday, 3/22/80) Shift Supervisor (Pending) Superintendent of Operations (Pending) Senior Mechanical Inspector (Oral Exam, Tuesday, 3/18/80) Maintenance Technician III, Instrumentation (Written Exam, Saturday, 3/15/80) (Oral Exam, Thurday, 3/27/80) Specialist (Resident Engineer/Contract Administrator) (Pending) ELIGIBILITY LISTS ESTABLISHED Associate Engineer (Civil) Senior Mechanical Inspector Maintenance Technician III, Instrumentation PERSONNEL CHANGES Permanent Appointments JON GENTILLE, Operator I, Range 59-A, $1,404, effective 4/1/80, promotion. ROBERT HIGGINS, Operator III, Range 65-C, $1,782, effective 3/1/80, promotion. DOYLE HILL, Maintenance Technician III, Instrumentation, Range 65-A, $1,618, effective 2/15/80, new hire. WILLIAM MCDOWELL, Operator II, Range 62-8, $1,581, effective 3/1/80, promotion. GARY RIDDLE, Plant Attendant, Range 49-B, $1,163, effective 4/1/80, status change. RAYMOND THEISS, Operator II, Range 62-E, $1,824, effective 3/1/80, promotion. RITA WALENSA, Operator I, Range 59-A, $1,404, effective 3/1/80, promotion 0 LH. 0' (~~ C) 1699 Leave of Absence SUSAN DUFFY, Laboratory Technician, effective 2/27/80, maternity Resignations MAXIMO CASTRO, Plant Attendant, effective 4/11/80. PATTY DANNA, Engineering Aid II, effective 3/20/80. MICHAEL HIGARES, Shift Supervisor, effective 3/28/80 BETTY SIMPSON, Engineering Aid III, effective 4/4180. Reti rement CARLTON WEBB, Safety Training Supervisor, effective 3/28/80 d. Mr. Dolan called the Board1s attention to the Travel and Conference Summary Sheet indicating expenses incurred during February 1980. 2. COUNSEL FOR THE DISTRICT Mr. Carniato discussed a $20,000 overflow claim that has been filed against the District by Mrs. Jean Hallack of 2745 Kinney Drive, Walnut Creek. After discussion, it was moved by Member Boneysteele, seconded by Member Campbell, that $6,500 be authorized for settlement of the claim of Mrs. Jean Hallack of 2745 Kinney Drive, Walnut Creek. Motion was unanimously approved. 3. SECRETARY None 4. COMMITTEES None IX. MATTERS FROM THE FLOOR a. Member Dalton advised that the Technical Advisory Committee of the Solid Waste Management Commission is rewriting the County Solid Waste Plan. The District may be asked to provide assistance in this proj ect. b. President Carlson asked if the Budget Schedule was proceeding within the given time frame. Mr. Dolan informed that the Employees Association had submitted to him a draft proposal of their requests in accordance with the time schedule. c. Member Campbell advised that there will be a CASA meeting in Sacramento on May 9. After discussion, it was moved by Member Campbell, seconded by Member Dalton, to authorize the attendance of five Board members and three staff members at the CASA meeting being held in Sacramento on May 9, 1980. Motion was unanimously approved. X. ADJ OURNMENT At 11:19 p.m., President Carlson adjourned the meeting. 04 (~:,'7' V ~:..) .;:") .' (}'v 1700 0 ÉJ,J £: ~ President of the District Board of the Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: strict Board of the sta Sanitary District, Costa, State of California n\ . Vd ) '-, L... " ".,'"J,', ~)