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HomeMy WebLinkAboutBOARD MINUTES 04-15-82 2062 MINUTES OF A REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON APRIL 15, 1982 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 15,1982 at 7:30 p.m. President Stanley called the meeting to order and requested the Secretary to call roll. I. ,ROLL CALL PRESENT: Members: ABSENT: Member: Carlson, Boneystee1e, Dalton and Stanley Camp be 11 Member Campbell had indicated at a previous meeting that he would be absent from this meeting and was therefore excused. I!. APPROVAL OF MINUTES 1. 2. MINUTES OF THE MEETING OF MARCH 4,1982 MINUTES OF THE MEETING OF MARCH 11,1982 MINUTES OF THE MEETING OF MARCH 18, 1982 3. After discussion, it was moved by Member Carlson, seconded by Member Dalton, that the minutes of March 4, 11 and 18 be approved as presented. Motion carried by the following vote: AYES: Members: Carl son, Boneystee1e, Dalton and Stanley NOES: Members: None ABSENT: Member: Campbell II!. EXPENDITURES 1. LIST DATED APRIL 15, 1982 Members Boneystee1e and Dalton, members of the Budget and Finance Committee had reviewed the expenditures and found them to be satisfactory. After staff explanation regarding a warrant issued to Kelly Services, Inc., it was moved by Member Boneystee1e, seconded by Member Dalton, that the expenditure list dated April 15,1982, covering Running Expense Warrant Nos. 19868-20096; Sewer Construction Warrant Nos. 1982-2015; and Payroll Warrant Nos. 1800-1805, be approved. Motion carried by the following vote: AYES: Members: Carlson, Boneysteele, Dalton and Stanley NOES: Members: None ABSENT: Member: Campbell IV. HEARINGS 1. PUBLIC HEARING TO CONSIDER REQUESTS FOR RATE INCREASES FROM VALLEY DISPOSAL SERVICE, DIABLO DISPOSAL SERVICE AND LAFAYETTE GARBAGE DISPOSAL At President Stanley's request, Mr. Dolan, General Manager-Chief Engineer (GM-CE), gave an overview of the methods used in preparing staff's analysis of the Disposal Companies' application for rate increases. He then requested Mr. Funasaki, Finance Officer, to further review the garbage rate analysis for the Board. (14 ~~:F5 -'82 I:' ~ ì 2063 Mr. Funasaki reviewed details concerning changes in staff's rate analysis regarding the projected expenses for the Disposal Companies. He explained the exclusions from allowable expenses. In response to a previous Board request, Mr. Funasaki reviewed figures concerning projected operating ratios in the case where no rate increases would be granted for the fiscal year ending March 31,1982. He also gave estimates of the cost savings that have been realized as a result of consolidating garden clipping pickups with the regular garbage pickups. There being no further questions from the Board at that time, President Stanley declared the Public Hearing to be open. President Stanley called upon Mr. Sanford Skaggs, Counsel for the three Disposal Companies, who addressed the Board on several items contained in the staff analysis. He urged the Board to consider adopting an operating ratio more favorable to the Disposal Companies, explaining that the current 95% operating ratio produces a very tight profit margin. Mr. Skaggs also addressed the matter of "Comparable Rates in Neighboring Communities". He stated that the service provided in many of the jurisdictions does not provide for weekly trimmings pickup and three annual cleanups as part of the basic rate. His final point was that the area which Valley Disposal serves under the District franchise is largely suburban with very few commercial or multiple dwelling customers. Therefore, collection costs are much higher in the District franchise area than they are in the City of Walnut Creek, which has a more even customer mix. Addressing the Board in protest of any garbage collection rate increases were Mr. Derek Augood, Mrs. Barbara Zivica and Mr. Mike Egan. Mr. Augood expressed concern in regard to figures contained in the rate increase application and could not understand the request for a 15% increase in light of the fact that the inflation rate is coming down. Mrs. Zivica questioned Valley Disposal's management income distribution and Mr. Egan felt that the Disposal Companies should investigate curb pickup service and recycling program to help keep costs down. Discussion followed wherein Member Boneystee1e suggested that perhaps an outside consulting firm could be retained to perform a managerial audit to study the general operations of the Disposal Companies and adopt a 5% temporary increase. In response to Member Boneysteele's suggestion, Mr. Skaggs stated that it is certainly within the purview of the Board to request such an audit, however, he questioned the justification. He further stated that the Companies would be operating without a budget during such an audit period and it is unfair to expect a Company to operate without a profit. Presi dent Stan 1 ey as ked for further comments, from the pub li c. There being none, he declared the hearing closed at 8:46 p.m. Member Carlson stated that as far as conducting a managerial audit, it was his understanding that the factual information submitted by the Companies was accurate. The staff analysis procedures have greatly improved over the years and on that basis an audit seems to be unnecessary. Member Dalton stated that h~ had reviewed the staff analysis and had no problems with it. He commented that he was prepared to act upon the recommendation. President Stanley indicated that he was in favor of a managerial audit and adoption of a temporary 5% increase. Mr. Dolan indicated that setting the commercial rates presents some complication and asked Mr. Skaggs to clarify his recommendation on the consolidation of these rates. Mr. Skaggs requested the Board allow him to work with Mr. Funasaki in an effort to achieve a 100% operating ratio for commercial rates for Board presentation at the meeting of April 22. 0 4" ~~,:15:" f 8 2 . ,~ ~ 2064 After discussion, it was moved by Member Boneysteele, seconded by Member Dalton, as follows: (1) that Valley Disposal Company, Diablo Disposal and Lafayette Disposa1~ be ,granted a rate increase which would raise the operating ratio up to 100% in zones 4, 5 and 2 respectively; (2) that the Collector submit to the District the names of five managerial consultants, of which the District staff would select one for the purpose of conducting a managerial audit; and (3) that it be understood that the costs of the study will be paid by the franchisee and recoverable under a future rate setting process. Prior to the vote, Mr. Skaggs requested that Section (1) of the motion be revised as follows: (1) that Valley Disposal, Diablo Disposal and Lafayette Disposal (Zone 4, 5 and 2 respectively) be granted a temporary 5% rate increase for all residential collection rates and that a percentage of the increase for apartment and commercial rates that will bring the operating ratios of the companies to 100% be determined for adoption at the meeting of April 22, both to be effective April 1, 1982. Members Boneysteele and Dalton approved of the motion change. Motion carried by the following vote: AYES: Members: Carlson, Boneysteele, Dalton and Stanley NOES: Members: None ABSENT: Member: Campbell At 9:11 p.m., President Stanley recessed the meeting. At 9:20 p.m., President Stanley reconvened the meeting. V. BIDS AND AWARDS 1. 2. REPORT BIDS FOR DISTRICT SEWERING PROJECT NO. 2695 CONSIDER AWARD OF CONTRACT FOR CONSTRUCTION OF DSP 2695-WS 23 PARALLEL TRUNK SEWER (NORTH WALNUT CREEK) Mr. Dolan, GM-CE, requested that this item (DSP 2695) be deferred to the next District Board meeting to allow more time for staff review of bids. v!. CONSENT CALENDAR After discussion, it was moved by Member Dalton, seconded by Member Boneysteele, that Items 1 and 2 be approved, resolutions adopted and their recording authorized as applicable. 1. Authorize execution of a Consent to Dedication to CCC -Subd. 6101 (Job 3354 - Fish Creek Place) and authorize its recording. Resolution No. 82-37 ' 2. Authorize execution of agreement relating to Real Property with Jeffery S. Kingston, et ux, Job 3109, Subd. 5341, Lot 8 - Orinda area and authorize its recording. Resolution No. 82-38. Motion carried by the following vote: AYES: NOES: ABSENT: Members: Members: Member: Carlson, Boneysteele, Dalton and Stanley None Campbell :L Authorize PA 82-8 (Alamo area) and PA 82-9 (Danvi11e area) to be included in a future formal annexation to the District. After discussion, it was moved by Member Boneysteele, seconded by Member Dalton, that Item 3 of the Consent Calendar be approved. Motion carried by the following vote: 0 4' . ¿, 15'" ,.," 8 o' , '~ ~ .4' ,.,,' , " 2065 AYES: NOES: ABSTAINING: ABSENT: r.lembers: Boneysteele, Dalton and Stanley Mer:lbers: None Member: Carlson Member: Campbell ~1ember Boneystee1e commented that the District appears to still b~ annexing large areas. Mr. Dolan responded that the area in reference can only be developed to a small number of sites and he does not aniticpate any problems Hith connecti ons i f the treatment p1 ant capacity project continues on schedule. VI!. ENGINEERING AUTHORIZE $58,400 FOR DESIGN OF STORM DRAINAGE REPAIRS TO THE COLLECTION SYSTEM 1. After Board and staff discussion, it was moved by Member Carlson, seconded by Member Dalton, to authorize $58,400 for the design of storm damage repairs to the District's collection system. Motion carried by the following vote: AYES: NOES: ABSENT: Members: Members: Member: Carlson, Boneystee1e, Dalton and Stanley None Campbe 11 VII I. ITEMS LATE FOR THE AGENDA None IX. REPORTS 1. GENERAL MANAGER-CHIEF ENGINEER a. Mr. Dolan welcomed Professor Jenkins of U. C. Berke1y and his graduate students in Management and Sanitary Engineering who were attending the meeting this evening as observers. b. Mr. Dolan advised that negotiations for the Metcalf & Eddy engineering contract are underway. Staff will report to the Board on its progress sometime in May. c. Mr. Dolan advised that the Board Meeting Room at the Treatment Plant is nearing completion. It is anticipated that the District Board meeting of May 20 will be held at the new location. d. Mr. Dolan advised that one or two staff members will be travelling back East in May to witness the testing of the Electric Driven Blower system, which will be installed at the Treatment Plant early this summer. e. Mr. Dólan indicated that since Central San is a public agency, it was not necessary to obtain building permits from the County for the new Office Building and there was no outside plan check. District staff has been thorough in reviewing the plans but there has been no detailed check on the structural design. Therefore, in discussing this with Member Carlson, Member Carlson considered that it would be appropriate if an independent plan check was made. Mr. Dolan, therefore, brought this suggestion to ~he Board for their review and action. After discussion, it was moved by Member Carlson, seconded by Member Dalton, to authorize up to $3,000 to retain an engineering consultant to perform a plan check for the new Office Building to ensure that it complies with the health, safety and structural requirements of the building code. Motion carried by the following vote: AYES: NOES: ABSENT: Members: Members: Members: Carlson, Boneysteele, Dalton and Stanley None Campbe 11 ~: 1 a 1:. 8t¿('. 2066 f. Mr. Dolan advised that since Ca1-Trans highway construction plans for the District property are still vague, it has been suggested that the main floor of the current Office Building be leased to others when we move to the new Office Building and lower floor modifications are completed for CSO activities. A preliminary review has indicated that leasing that portion of the present District Office Building could produce $100,000 revenue per year, plus any appreciation in the property value. g. After Mr. Dolan outlined upcoming Board business, it was the consensus of Board that an Adjourned District Board meeting be held on April 22. h. Mr. Dolan advised that the Dept. of Water Resources has approached the District to become involved in a joint water conservation project. After discussion, it was the consensus of ihe Board to refrain from any involvement, pending further clarification. i. Mr. Dolan stated that staff is investigating and considering various phone systems for use in the new Office Building with costs of purchase roughly estimated at $100,000 plus maintenance. j. Mr. Dolan indicated that a Safety Audit of the CSO Department has been completed. The estimated cost to midify equipment to correct safety deficiencies is $5,000, considerably larger sums will be required in the equipment budget to replace older, unsafe equipment. k. Mr. Dolan reported that one of the boilers at the Treatment Plant has been operating on landfill gas since late this afternoon; 1. Mr. Dolan directed the Board's attention to the quarterly training/conference reports in the back of their books. m. Mr. Dolan indicated he would have two items for discussion in Closed Session, regarding litigation and meet/confer. 2. COUNSEL FOR THE DISTRICT None 3. SECRETARY None 4. COMMITTEES None X. MATTERS FROM THE BOARD NOT ON THE AGENDA a. Member Carlson advised he would have some cost figures at the next meeting in regard to the graphics work at the new Office Building. At 10:10 p.m., President Stanley recessed the meeting. At 10:21 p.m., President Stanley reconvened the meeting. , XI.' CLOSED SESSION At 10:22 p.m., President Stanley declared a Closed Session to discuss meet and confer and litigation matters. At 10:42 p.m., President Stanley concluded the C1soed Session and reconvened the meeting in Open Session. o~ lð~ ge' 2067 XI I. ACTIONS RESULTING FROM DISCUSSION IN CLOSED SESSION As a result of discussion in Closed Session, the following actions were taken: a. It was moved by Member Carlson, seconded by Member Dalton, that the statements from John J. Carniato in the amount of $11,673.93 and from Larry Walker Associates Inc., in the amount of $1,670.25, be approved. Motion carried by the following vote: AYES: NOES: ABSENT: Members: Members: Member: Carlson, Boneysteele, Dalton and Stanley None Campbell b. It was moved by Member Carlson, seconded by Member Dalton, to authorize the hiring of Larry Walker Associates, Inc., for engineering consultation services relative to wastewater treatment projects for an approximate amount of $5,000. Motion carried by the following vote: AYES: NOES: ABSENT: Members: Membe rs : Member: Carlson, Boneysteele, Dalton and Stanley None Camp be 11 XII I. ADJOURNMENT At 10:44 p.m., President Stanley adjourned the meeting to 7:30 p.m. on April 22, 1982. COUNTERSIGNED: Secre y of tne Di ict Board of the Cent 1 Contra Cost Sanitary District, County of Contra Costa, State of California 04 < 1,5 '82 ~ ,.,~ . 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