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HomeMy WebLinkAboutBOARD MINUTES 05-05-83 2193 MINUTES OF A REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 5, 1983 The District Board of the Central Contra Costa Sanitary District convened in a scheduled regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California on May 5, 1983, at 7:30 p.m. President Dalton called the meeting to order and requested the Secretary to call roll. I. ROLL CALL PRESENT: ABSENT: Members: Member s : Carlson, Boneysteele, Campbell and Dalton Stanley Member Stanley arrived at 7:32 p.m. II. APPROVAL OF MINUTES MINUTES FOR THE MEETING OF APRIL 7, 1983 It was moved by Member Boneysteele, seconded by Member Campbell, that the minutes of April 7, 1983 be approved as presented. Motion was unanimously approved. III. EXPENDITURE LIST DATED MAY 5, 1983 EXPEND ITURES After due consideration, Member Boneysteele moved that the expenditures be approved. Member Stanley seconded the motion. Motion was unanimously approved. IV. HEARINGS PUBLIC HEARING CONCERNING APPLICATION FOR REFUSE COLLECTION RATE INCREASE BY ORINDA-MORAGA DISPOSAL SERVICE, INC. AND CONSIDER SETTING APPROPRIATE RATE SCHEDULES. President Dalton stated that the Board would follow usual hearing procedures. After making opening remarks in which he briefly discussed Board actions resulting from the Orinda-Moraga Disposal Service, Inc. (Orinda-Moraga) application for refuse collection rate increase, President Dalton declared that the Public Hearing be opened at 7:34 p.m. District Staff Reports President Dalton asked for staff's report on the analysis of the rate increase application. Roger J. Dolan, General Manager-Chief Engineer (GM-CE) referred to Walter N. Funasaki, Finance Officer and asked him to review for the Board staff's analysis of the Orinda-Moraga application At the conclusion of Mr. Funasaki's remarks, President Dalton opened the Hearing for presentations from the public. Mr. Sandy Skaggs, Attorney representing the Orinda-Moraga Disposal Service, began his remarks by making a comparison of the rates of the various cities in the central Contra Costa area. He indicated that expenses this year are expected to increase over 8% and believes the 95% operating ratio is too high which he said creates a very thin profit margin for the company. In addressing the return on equity calculation, Mr. Skaggs stated that the expense figure is based upon the fiction that Orinda-Moraga's trucks are being purchased rather than leased. He suggested two approaches the Board could take in dealing with the problem. 0,,",' .;:) ..-.. ,... . I ,.- ',I";J 8~{ 2194 1. Impute the interest and depreciation and utilize the existing equity. In this way, it would be assumed that Orinda-Moraga borrowed the money to buy the trucks. They certainly would have an imputed interest expense under that situation. 2. Another way of handling the problem is to consider that Orinda-Moraga owned their trucks and compute the depreciation. But in this case, there would be increased equity. If either of those methods of arriving at a decision were used, then the percentage increase in revenue required using the return on equity method would increase considerably. In conclusion, he asked that at least the rates be based on the 95% opera- ting ratio rather than a return on equity. In addition, he asked the Board to consider an extra five cents above the 95% operating ratio to reflect the fact that the ratio would be in effect for only eleven months due to the second quarter billings having already been sent out. Gary Gallagher, Orinda resident and customer, stated that whatever rates are decided upon, that they be contingent upon an increase in the level of service to Orinda by providing weekly trimmings pickup and seasonal cleanup. Mr. Gallagher said that because Orinda residents have garden clippings like other areas, they are faced with paying a gardening service to have the trimmings hauled away. Also, he has observed various trimmings and other garbage dumped onto vacant lots and in the streets which is unsightly. President Dalton responded that a former Board polled Orinda residents as to whether these extra services should be included in their service and got a very negative reaction. Member Boneysteele added that the District held a number of hearings in various areas of the central County about 15 years ago to determine the wishes of the community. A meeting was held with the Orinda Association and there proved to be a great deal of opposition in Orinda because the residents didn't wish to place the cans out by the street. Without curbs, the cans could become a hazard to vehicles and also detract from the overall appearance of the community. With overwhelming disapproval in Orinda, the Board did not implement the extra services there. But he added that perhaps a new poll would be in order at this time, particularly before changing the service. Mr. Al Dessayer, Councilman, speaking on behalf of the Town of Moraga Council, thanked Orinda-Moraga Disposal Service for its service and said they were very happy with the level of service and the way it is administered. Secondly, they have analyzed the Price Waterhouse report at length, feel that it is an excellent report, and agree with most of the recommendations and strongly believe they should be implemented. Mr. Dessayer said that many public utili- ties use the return on equity method and it should be a major factor considered in the Board's decision. He said the problem with operating ratios is that it is basically an approach to a cost plus basis. He recommended that a decision be based on the return on equity and the increase be in the neighborhood of 4.6% to 8.6% as recommended by staff. Dwayne Robinson, a member of the Board of Directors of the Orinda Associa- tion, stated that after 15 years, it is time to re-evaluate the type of service Orinda receives. He indicated that the Association has received comments to the effect that it appears sometimes that garbage is just being redistributed rather than being taken away as residents frequently find refuse from their neighbors in the streets. He suggested that perhaps the rates for Orinda and Moraga should be separ ate. President Dalton asked Mr. Robinson if the Orinda Association is prepared to initiate community action to ascertain whether the residents of Orinda would like a change in service. Mr. Robinson assured the Board that they would be willing to poll the residents of Orinda. Mr. Sandy Skaggs stated that the Orinda-Moraga Disposal Service would be happy to provi de Orinda with more servi ce~ however ~ there woul d be costs involved. He suggested that if the residents of Orinda are surveyed, that the costs be priced out ahead of time. With regard to complaints, Mr. Skaggs said that the company would like to deal with them individually. 05 05 ~~. ,- . , .11 '-' -, 2195 A final comment was made by Mr. Funasaki on the issues raised by Mr. Skaggs regarding whether replacement of truck lease expense with depreciation expense for rate setting purposes required adherance to the Financial Accounting Standards Board's Statement 13 related to capitalized leases. He stated that there there would be inconsistency if we were to assume that these truck leases are capitalized leases and that there was no intention of treating these leases as if they were capitalized leases in the technical sense. In fact, these leases are not considered to be capitalized leases, but as operating leases. The adjustment made for rate setting purposes is consistent with a long-standing convention There being no further individuals in attendance who wished to be heard, President Dalton declared the public hearing to be closed and stated that the Board would consider the rate increase. Further discussion among Board Members took place and it was suggested by the Board and agreed to by Mr. Dwayne Robinson, that the Orinda residents should have the opportunity to dec i de whether the servi ce they are now recei vi ng is adequate. After discussion, it was moved by Member Campbell, seconded by Member Carlson, that a resolution be adopted establishing an 8.6% rate increase, using the 95% operating ratio for Orinda-Moraga Disposal Service Company (Zone No.1 and lA), Resolution No. 83-61. Motion was unanimously approved. Mr. John Carniato, Counsel for the District advised the Board that he would give his opinion on the question of retroactivity in closed session. The Board was adjourned to closed session. After a brief closed session to discuss the issue of retroactivity, Presi- dent Dalton reopened the meeting and stated that Mr. Carniato advised against retroacti vity. Member Boneysteele then moved, and Member Stanley seconded, that the rate increase be effective on May 15, 1983. The motion was unanimously approved. Member Boneysteele complimented the staff for the fine report which contained the necessary information which the Board needed in order to make its decision. V. CONSENT CALENDAR It was moved by Member Carlson, seconded by Member Stanley, that consent calendar Items 1 and 2 be approved as recommended, that respective resolution be adopted, and recording authorized as applicable. Staff recommends the following: 1. Accept an easement at no cost to the District from James J. Evans, et ux, Alamo area, Job No. 690, Parcel 3. 2. Approve Amendment to Subcontractors listed in the Contract by Dalzell Corporation for District Project No. 3433, Pump Stations Renovation. The motion was unanimously approved. VI. ADMINISTRATIVE 1. CONSIDER INCREASE IN FRANCHISE FEE ASSESSED TO REFUSE COLLECTORS. Roger Dolan, General Manager-Chief Engineer explained to the Board Members that the District hoped to recover the costs of the Price Waterhouse report by adding those costs to the $20,000 franchise fee of all the District's franchised garbage collectors. He recommended that the franchise fee be increased to $24,417 for three years. Indicating that an increase in their franchise fee would affect the 1983- 1984 95% operating ratio figures, Member Carlson moved and Member Campbell seconded that the franchise fee adjustment for Orinda-Moraga Disposal Service, Inc. be postponed for one year and that they be so advised. The motion was unanimously approved. 05 U'. ~+;," ... (J tS ;j 2196 2. RECEIVE AND REVIEW 1983-84 EQUIPMENT BUDGET. Roger Dolan, GM-CE introduced this agenda item and stated that staff was prepared to answer any questions posed by the Board Member Carlson questioned the computer hardware item as it related to the original computer equipment request. Paul Morsen, Administrative Department Manager answered that the Board had requested that it be provided the opportunity of review and approval of such purchases rather than approve of them as part of a contingency allowance. Discussion continued concerning computer and dicta- tion/transcription equipment. Noti ng a request for a Honda 1 awn mower, Member Boneystee 1 e questi oned whether the staff is abiding by its "Buy American" recommendation. Paul Morsen, Administrative Department Manager explained that staff would like to purchase a mower which has the features of the Honda mower and will attempt to find an American made brand which meets those requirements. Pertaining to the request of an air respirator for sandblasting, Mr. Dolan, General Manager-Chief Engineer discussed the justification for this item and said that it is required for health & safety reasons. Storage facilities for the Board's use in the caucus room were discussed and Board Members felt that three locking two-drawer file cabinets and a work center would be sufficient for their needs. Member Carlson moved, Member Campbell seconded the motion, to approve the equipment budget as presented. Motion unanimously approved. 3. RECEIVE LETTER FROM THE BUILDING INDUSTRY ASSOCIATION CONCERNING NOTICE OF ANY PENDING FEE AND/OR CHARGES CHANGES. It was moved by Member Carlson, seconded by Member Stanley that this correspondence has been received and that staff has been instructed to comply with the request to notice time and place ten days prior to meetings where oral or written presentations are to be made on new fees or services charges. Motion unanimously approved. 4. CONSIDER "DRAFT PROVISIONS OF A JOINT EXERCISE OF POWERS AGREEMENT FOR SOLID WASTE MANAGEMENT", DATED APRIL 1983. There was discussion regarding the structure, number of participants i nvo 1 ved and cost shari ng of the Joi nt Exerci se of Powers Agreement. It was noted that the Board of Supervisors is the lead agency with respect to this agreement. It was the consensus of the Board Members that they support and approve the overall concept of the Joint Exercise of Powers Agreement subject to further negotiations of the parties involved. Member Boneysteele stated that the District's representative should take the Board's colTIßents back to the Solid Waste Management meeting scheduled for May 26, 1983. 5. ADOPT A RESOLUTION COMMENDING CLYDE M. HOPKINS FOR HIS SERVICE TO THE CENTRAL CONTRA COSTA SANITARY DISTRICT. Roger Dolan, General Manager-Chief Engineer read a resolution commending Clyde Hopkins for his long-standing diligent service to the District. Member Boneysteele endorsed the resolution and expressed the Board's appreciation for many years of loyal service. Member Carlson moved, and Member Stanley seconded a motion, to adopt a resolution commending Clyde M. Hopkins. Motion unanimously approved. VII. ENGINEERING 1. APPROVE AMENDMENT NO. 13 TO THE TASK A AGREEMENT WITH METCALF & EDDY FOR ENGINEERING STUDIES AND THE RETURN OF $6,360 TO THE SEWER CONSTRUCTION FUND. After consideration, Member Carlson moved, and member Boneysteele seconded a motion, to authorize the General Manager-Chief Engineer to execute Amendment No. 13 to the Task A agreement and return $6,360 to the Sewer Construction Fund. Motion was unanimously approved. 01-' . ;) 05',' i{.~ ~:3 2197 2. APPROVE A CONTRACT WITH H. J. DEGENKOLB, ASSOCIATES, AND AUTHORIZE $10,690 IN SEWER CONSTRUCTION FUNDS FOR THE DESIGN OF WASTE HEAT BOILER SEISMIC RESTRAINTS. Roger Dolan, General Manager-Chief Engineer explained the need for seismic design for the protection of the waste heat boilers. Member Carlson moved and Member Boneysteele seconded the motion to authorize the General Manager-Chief Engineer to execute the contract with H. J. Degenkolb Associates and authorize $10,700 in Sewer Construction Funds for design of seismic bracing of waste heat boilers. The motion was unanimously approved. 1. VII 1. LEGAL/LITIGATION RECEIVE AND REVIEW CLAIM FROM BARBARA F. BLUME FOR PROPERTY DAMAGE. It was moved by Member Stanley, seconded by Member Campbell that this claim be denied and referred to the District's insurance carrier. Motion was unani- mouslyapproved. None. 1. (J~) IX. ITEMS LATE FOR THE AGENDA X. REPORTS GENERAL MANAGER-CHIEF ENGINEER a. Mr. Do 1 an announced May 14, 1983 as the date of the plant tour and said it was hoped that families would get involved. He also invited Board Members to go on a tour prior to the open house to visit three slide areas in Lafayette, Moraga and Walnut Creek. It was agreed that individuals taking the tour would meet at the District's Walnut Creek facility at 9:00 a.m. b. Mr. Dolan informed the Board that a Safety Coordinator was hired and will be starting work on June 1, 1983. Mr. Dolan stated that management proposes to make buy-back of prior public service available on the Benefit Option Plan. This is presently a feature of the County Retirement Program and there is no additional cost to the District. c. d. Mr. Dolan informed the Board of the progress of the furnace project and said that the Engineering Department has worked diligently with help from the Plant Department. The project is being reviewed and reesti- mated and the result is a change in scope of the work. Malcolm Pirnie estimates the costs increase to be in excess of $200,000. At the next Board Meeting, there will be a status report explaining this figure and describing certain offsetting costs. There was discussion regarding the visability of the tape joints on the Board Room walls. Mr. Dolan explained that this resulted from a particular material used in the finishing of the interior walls and does not constitute a contract deficiency. e. f. Mr. Do 1 an adv i sed the Board that the recent Management Educat ion Series featured two speakers well versed in EEOC and Affirmative Action. Their presentation was well-received by the supervisors and managers. g. Mr. Dolan stated that we are cons i deri ng changes in our method of allocating overhead charges to Capital Projects. Presently, District labor charges to capital projects include a factor for employee benefits. Because this figure does not include all benefits and overhead costs, our labor charges are artificially low. We are proposing to modify the overhead method by including administrative and general expenses in the calculation. This will result in more equitable allocation of overheads between Capital and 0 & M. The Board indicated a general concurrence with the concept. ~., ¡.,.,~ ~'"' '~.;¡; "~ ~i' ~¡'" Ã '- ,,> ""-'" 2198 h. Mr. Dolan inquired whether the members of the Board would be willing to come about one half hour early to the next Board Meeting (May 19,1983) to be photographed; the picture is to be included in the annual report. 2. COUNSEL FOR THF nTSTRT~T a. Mr. Carniato requested that a litigation meeting be scheduled for July 14,1983. He suggested this be on a quarterly basis and be considered a routine quarterly update and litigation meeting. 3. COMMITTEE REPORTS a. Member Boneysteele asked staff if they were planning to attend an upcoming Aquatic Habitat meeting. David Niles, Deputy General Manager assured him that we are monitoring the Aquatic Habitat program. Member Carlson requested that a resolution to BART be drafted inform- ing them that District Directors oppose BART's proposal to extend service to San Mateo County until service to Contra Costa and Alameda counties have received their promised extended service. b. XI. MATTERS FROM THE BOARD NOT ON THE AGENDA None. XII. CLOSED SESSION At 10:25 p.m., President Dalton declared the meeting to be in closed session. Personnel and legal matters were to be discussed. XIII. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION The Board requested that a special meeting be scheduled to discuss personnel matters. XIV. ADJOURNMENT The meeting was adjourned at 12:10 a.m. 6-~ President of the District Board of the Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: secret~f the Central Contra Costa Sanitary District, County of Contra Costa, State of California ("t, f""'" ì ,;.) t" '. ...,..' :, ", ,/ () 8:3