HomeMy WebLinkAboutBOARD MINUTES 12-21-72
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MINUTES OF A REGULAR MEETING
OF THE DISTRICT BOARD
CENTRAL CONTRA COSTA SANITARY DISTRICT
HELD DECEMBER 21,1972
The District Board of Central Contra Costa Sanitary District convened in
a Regular Session at its regular place of meeting located at 1250 Springbrook
Road, Walnut Creek, County of Contra Costa, State of California, on December 21,
1972, at 8:00 o'clock P.M.
The meeting was called to order by President Allan.
1.
ROLL CALL
PRESENT:
Members:
Boneysteele, Gibbs, Mitchell, Rustigian and Allan
ABSENT:
Members:
None
II.
APPROVAL OF MINUTES
None.
III.
APPROVAL OF EXPENDITURES
None.
IV.
HEARINGS
1.
GARBAGE RATE INCREASE FOR 1973, LAFAYETTE GARBAGE DISPOSAL SERVICE, INC.
President Allan opened the public hearing on garbage rate increases for
1973 for Lafayette Garbage Disposal Service, Inc.
Secretary Davis reviewed for the benefit of Board Members and those persons
in the audience previous instructions issued to staff regarding format and type
of data desired from staff in its analyses of garbage rate increases for 1973.
Secretary Davis read correspondence received from Mr. Ernest C. Marriner,
City Manager, City of Lafayette, requesting that, in the matter of garbage rate
increases for residents of Lafayette, the City Council desired that a uniform
rate structure and type of service prevail.
Secretary Davis proceeded to explain in detail the financial data and
analysis prepared for Lafayette Garbage Disposal. He indicated that data
was basically comparable on an annual basis and that financial results for
1972 were predicated on nine months actual reported results with three months
staff projection. Projections on revenue for 1973 reflected current number
of customers for Lafayette Disposal and cost projections incorporated the
alternatives of both twelve and thirteen personnel.
Secretary Davis then commented on a comparison of Lafayette Disposal's
annual financial costs to lease trucks vs. the annual cost to own and de-
preciate vehicles. He indicated that leasing operations, as predominately
used by Lafayette Disposal, exceeded the cost of ownership of vehicles by
approximately 74 per cent. However, it was noted that the matter of leasing
vehicles was a business judgment and that rates for leasing vehicles from
D & F Leasing Co. (a separate firm owned by management of Lafayette Garbage
Disposal) were comparable to normal commercial rates for leasing.
Discussion followed between Board Members, staff and Mr. Eugene Brown,
accountant for Lafayette Disposal, regarding the matter of leasing vehicles
vs. ownership. Mr. Brown commented that leasing operations were an acceptable
method of business, ensured conservation of funds and stated that, while he
is in agreement with staff's financial data, he suggested this method of
computation recovered only historic costs whereas business needed to recover
replacement costs, which, over a period of seven or eight years, will have
increased 80 to 90 per cent due to inflationary factors.
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President Allan commented that ownership of vehicles with annual de-
preciation likewise recovered only historic costs and not replacement costs.
Member Boneysteele suggested that a 9-1/2 per cent return on investment
was normally used in computing recoverable costs whereby Secretary Davis re-
computed the annual financial costs for leasing vehicles vs. ownership.
Board Members discussed the matter of leasing operations vs. outright
ownership of vehicles as a possible Board policy to be utilized in determina-
tion of rates and in evaluating company operations. President Allan, upon
recommendation of Counsel for the District, then suspended the hearing on
garbage rates for Lafayette Garbage Disposal to open the hearing on rate in-
creases for Orinda/Moraga Disposal Service, Inc.
Secretary Davis explained in detail the financial data and analysis pre-
pared for Orinda/Moraga Disposal with Board Members commenting and requesting
further clarification on various points, particularly number of collecting
personnel employed by Orinda/Moraga. Participating in this discussion were
Mr. Peter Brethauer, accountant for Orinda/Moraga, and Mr. Joseph Navone re-
presenting management.
At the invitation of President Allan, persons in the audience expressed
their views and comments on the proposed garbage rate increases.
Mr. Geno Banducci noted that from a survey of over 200 individuals in
Orinda which he had conducted, 90 per cent were opposed to garden trimming
service. Further, he indicated that the position of The Orinda Association
had not changed regarding the Board's approach in determination of rates,
suggesting that this guarantees a profit margin to companies thereby inhibiting
operational efficiency. Mr. Banducci then stated that a personal comparison
of garbage rates for other communities in the Bay Area indicated that rates in
Contra Costa County to be highest.
One gentleman (name unknown) stated he favored the rate increases re-
quested by Orinda/Moraga Disposal provided garden trimming service was made
available. He expressed concern that, without this type of service, solid
waste would accumulate in Orinda at an unacceptable proportion.
Mr. Raymond L. Horton commented that he was very concerned about a
monthly increase in rates of 50 cents. He considered this inflationary
and requested the Board defer action.
M~ Svedburg commented on surcharge rates and expressed concern that
cost of labor was excessive.
Board Members, staff and representatives of Lafayette Garbage Disposal
and Orinda/Moraga Disposal Service discussed with members of the audience
their comments and exchanged views.
President Allan suspended the hearing on Orinda/Moraga and reconvened
the hearing on rate increases for Lafayette Garbage Disposal.
It was moved by Member Gibbs, seconded by Member Rustigian, that the
monthly rate for Lafayette Garbage Disposal for 1973 be established at $3.65.
Prior to vote on the motion, Mr. Louis Repetto and Mr. Eugene Brown noted
that this rate reflected only twelve personnel whereas his operations for
1973 would require one additional individual. After further discussion by
Board Members, staff and management, Member Gibbs withdrew his motion. It
was then moved by Member Mitchell, seconded by Member Boneysteele, that the
monthly rate for residential customers for 1973 for Lafayette Garbage Dis-
posal be established at $3.75. Carried by the following vote:
AYES:
NOES:
ABSENT:
Members:
Members:
Members:
Boneysteele, Gibbs, Mitchell, Rustigian and Allan
None
None
Staff was requested to monitor personnel requirements in 1973 for
Lafayette Garbage Disposal.
President Allan closed the hearing on Lafayette Garbage Disposal and
reconvened the hearing on Orinda/Moraga Disposal Service.
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Board Members and representatives of management for Orinda/Moraga Dis-
posal discussed personnel requirements for 1973, vehicle requirements and
potential growth in revenue due to increase in customers. After discussion,
it was moved by Member Mitchell, seconded by Member Gibbs, that the monthly
rate for 1973 for Orinda/Moraga residential customers residing in the City
of Lafayette be established at $3.75; monthly rate for remaining residential
customers to be established at $3.40 with no garden trimmings collection.
Carried by the following vote:
AYES:
NOES:
ABSENT:
Members:
Members:
Members:
Boneystee1e, Gibbs, Mitchell, Rustigian and Allan
None
None
Staff was to prepare a District Ordinance to reflect the rates and type
of garbage service adopted by the Board.
President Allan closed the hearing on Orinda/Moraga Disposal and de-
clared a recess at 11:08 o'clock P.M. At 11:12 o'clock P.M., President
Allan reconvened the regular meeting.
V.
BIDS
None.
V1.
OLD BUSINESS
1.
LOCAL IMPROVEMENT DISTRICT NO. 50
Mr. Bohn, Counsel for the District, reviewed for Board Members the
current status of efforts to reach final settlement with Engineering In-
stallations, Inc., regarding Local Improvement District No. 50. He planned,
with Mr. Jerry Laster of Wilson, Jones, Morton and Lynch, Special Counsel
for the District, to present a report on the matter at the meeting of Janu-
ary 4,1973.
Staff reported that proceedings on Local Improvement District No. 50
were on schedule and that a public hearing was tentatively planned for
March, 1973.
VII.
NEW BUSINESS
1.
CONSENT ITEMS
a.
ACCEPTANCE OF EASEMENTS AT NO COST TO THE DISTRICT:
It was moved by Member Gibbs, seconded by Member Rustigian, that
easement from:
Grantor
Job No.
Parcel No.
John R. Boswell, et ux
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be accepted and its recording ordered.
Carried by the following vote:
AYES:
NOES:
ABSENT:
Members:
Members:
Members:
Boneystee1e, Gibbs, Mitchell, Rustigian and Allan
None
None
2.
AUTHORIZATION FOR STAFF MEMBERSHIP IN THE CONSTRUCTION SPECIFICATIONS
INSTITUTE
It was moved by Member Rustigian, seconded by Member Gibbs, that staff
membership in the Construction Specifications Institute be authorized at an
annual cost of $63.00. Carried by the following vote:
AYES:
NOES:
ABSENT:
Members:
Members:
Members:
Boneysteele, Gibbs, Mitchell, Rustigian and Allan
None
None
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3.
CLAIM OF MRS. BETTY L. MILLER IN THE AMOUNT OF $120.83
After comment by staff that claim represented water damage, it was moved
by Member Mitchell, seconded by Member Boneystee1e, that the claim of Mrs.
Betty L. Miller in the amount of $120.83 be paid, following receipt of signed
Release in Full Settlement and Compromise. Carried by the following vote:
AYES:
NOES:
ABSENT:
4.
Members:
Members:
Members:
Boneystee1e, Gibbs, Mitchell, Rustigian and Allan
None
None
ELECTION TO OFFICE OF PRESIDENT, BOARD OF DIRECTORS, CENTRAL CONTRA
COSTA SANITARY DISTRICT
With Member Rustigian indicating willingness to serve, it was moved
by Member Mitchell, seconded by Member Gibbs, that Member Rustigian be elected
President of the Board of Directors, Central Contra Costa Sanitary District,
to take office effective the first meeting in January, 1973. Carried by the
following vote:
AYES:
NOES:
ABSENT:
Members:
Members:
Members:
Boneystee1e, Gibbs, Mitchell, Rustigian and Allan
None
None
5.
AUTHORIZATION OF $1,000.00 FOR PRELIMINARY ENGINEERING STUDIES FOR
CONSOLIDATION OF TREATMENT FACILITIES, MT. VIEW SANITARY DISTRICT
After assurance by staff that funds authorized represented internal
allocation of costs, it was moved by Member Mitchell, seconded by Member
Rustigian, that authorization of $1,000.00 from the Sewer Construction
fund for preliminary engineering studies for consolidation of treatment
facilities with Mt. View Sanitary District be approved. Carried by the
following vote:
AYES:
NOES:
ABSENT:
Members:
Members:
Members:
Boneystee1e, Gibbs, Mitchell, Rustigian and Allan
None
None
6.
AUTHORIZATION OF $1,000.00 FOR PRELIMINARY ENGINEERING STUDIES
FOR CONSOLIDATION OF TREATMENT FACILITIES, CITY OF CONCORD
After assurance by staff that funds authorized represented internal
allocation of costs, it was moved by Member Gibbs, seconded by Member
Rustigian, that authorization of $1,000.00 from the Sewer Construction
fund for preliminary engineering studies for consolidation of treatment
facilities with the City of Concord be approved. Carried by the following
vote:
AYES:
NOES:
ABSENT:
7.
Members:
Members:
Members:
Boneystee1e, Gibbs, Mitchell, Rustigian and Allan
None
None
APPROVAL OF RENTAL AGREEMENTS WITH
COPYING MACHINE
CORPORATION FOR OFFICE
After comment by President Allan, it was moved by Member Mitchell,
seconded by Member Boneystee1e, that rental agreements with Zerox Corpora-
tion for an office copying machine be approved. Carried by the following
vote:
AYES:
NOES:
ABSENT:
8.
Members:
Members:
Members:
Boneystee1e, Gibbs, Mitchell, Rustigian and Allan
None
None
RESOLUTION NO. , A RESOLUTION APPOINTING JACK PATY, ENGINEERING
AID I, EFFECTIVE JANUARY 1,1973
After comment by Board Members and discussion with staff regarding
the eligibility list for Engineering Aid I, item was continued.
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9.
OTHER BUSINESS ADDED BY SUPPLEMENTAL AGENDA
a.
RESOLUTION NO. 72-65, A RESOLUTION REQUESTING TERMINATION OF
THE SOCIAL SECURITY (OLD-AGE, SURVIVORS, DISABILITY, AND
HEALTH INSURANCE)
After explanation by Mr. Horstkotte, General Manager-Chief Engineer,
discussion by Board Members concerning Social Security coverage being
optional for employees of certain governmental entities, and assurance
by staff that cost to the District would not be increased, it was moved
by Member Rustigian, seconded by Member Boneysteele, that Resolution No.
72-65 be adopted. Carried by the following vote:
AYES:
NOES:
ABSENT:
Members:
Members:
Members:
Boneysteele, Gibbs, Mitchell, Rustigian and Allan
None
None
VIII.
REPORTS
1.
COMMITTEES
a. Mr. Horstkotte, General Manager-Chief Engineer, reported on a
recent meeting held by staff, individual Board Members and representatives
of Brown and Caldwell, to review increased cost estimates for the District's
treatment and water reclamation plant expansion project. He indicated that
costs for the project had escalated during the planning stage from $42,800,000.00
to $54,680,000.00 with the latter figure representing certain modifications in
plant design. To report more fully on the matter, he had requested Dr. David
Caldwell and his associates, Mr. David Eisenhauer and Mr. Michael Flanagan of
Brown and Caldwell, to be present. He stated staff had made a revised applica-
tion for State and Federal grant funds to reflect the increased costs and
anticipated a favorable response prior to January, 1973. Construction of
the project would still be completed in the same time frame as planned, how-
ever, funds for the water reclamation unit would be shifted from fiscal year
1971-72 to 1974-75.
A general discussion followed with Board Members, staff, Mr. Bohn,
Counsel for the District, and representatives of Brown and Caldwell parti-
cipating and exchanging their views and comments on the matter.
Member Gibbs expressed concern regarding the economic impact the
increased costs for the project may have on the water reclamation phase
and the District's contract to supply reclaimed water to Contra Costa
County Water District to the year 2020.
Member Boneysteele suggested that the District's financial consultant,
Bartle Wells and Associates, should be apprised of the situation as soon as
possible and that staff, Brown and Caldwell and Mr. Bohn, Counsel for the
District, along with Bartle Wells should coordinate their efforts to determine
alternative courses of action.
Member Mitchell commented that, in order to reduce the cost of the
project, a major modification in plant design would be necessary.
Mr. Bohn, Counsel for the District, suggested that cost to the District
could be reduced if ownership of the new facilities could be broadened to
include other governmental entities.
Dr. David Caldwell explained that original cost estimates for the project
were based upon 1972 prices and that it is normal procedure for his firm not
to escalate cost figures to reflect the construction phase of a project because
of uncertainty of when actual construction will commence. Further, with no
escalation of cost figures, it is possible to compare costs of different pro-
jects. Dr. Caldwell indicated that the only major modification that could
reduce costs significantly was in the handling of sludge. Accordingly, he
would prepare cost estimates for use of the digestion process vs. incineration.
Mr. Horstkotte, General Manager-Chief Engineer, stated further data on
the matter would be available at the January 4 and 18,1973, meetings.
Item was continued.
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b.
ADVISORY COMMITTEE ON SOLID WASTE RECYCLING
Member Boneystee1e, Chairman of the Advisory Committee, noted that the
meeting scheduled for December 13, 1972, had been cancelled due to District
business.
c.
NEGOTIATING COMMITTEE
Member Mitchell reported that negotiations with the City of Concord
and Mt. View Sanitary District were proceeding well but that results were
still inconclusive.
2.
GENERAL MANAGER-CHIEF ENGINEER
Mr. Horstkotte reported that the District's outfall line had undergone
normal inspection and was operating properly.
3.
COUNSEL FOR THE DISTRICT
a.
AUTHORIZATION FOR $3,000.00 FOR DISTRICT MEMBERSHIP ON ASSOCIATION
OF BAY AREA GOVERNMENT'S SOLID WASTE MANAGEMENT COMMITTEE
Mr. Bohn reported that he had attended a recent meeting of ABAG's Solid
Waste Management Committee which was committed to the implementation of
SPUR's three year demonstration project.
Upon Mr. Bohn's recommendation that the District join the ABAG Committee
in order to participate in the project as a voting member, it was moved by
Member Boneystee1e, seconded by Member Mitchell, that authorization for
$3,000.00 from the Sewer Construction fund for District membership on ABAG's
Solid Waste Management Committee, be approved. Carried by the following vote:
AYES:
NOES:
ABSENT:
Members:
Members:
Members:
Boneystee1e, Gibbs, Mitchell, Rustigian and Allan
None
None
4.
SECRETARY
None.
IX.
MATTERS FROM THE FLOOR
Member Boneystee1e reported that his current business schedule may
preclude his attendance at Board special meetings if scheduled during the
early part of the week. However, he can be contacted in Los Angeles if
appropriate.
X.
ADJOURNMENT
At 12:45 o'clock A.M.,
1an adjourned the regular meeting.
. a~
President of the District Board of the
Central Contra Costa Sanitary District of
Contra Costa County, State of California
COUNTERSIGNED:
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Secretary of the District Board of the
Central Contra Costa Sanitary District of
Contra Costa County, State of California
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