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HomeMy WebLinkAboutBOARD MINUTES 04-19-84 37 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON APRIL 19, 1984 The Board of Directors of the Central Contra Costa Sanitary District convened in a regular session at their regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of Cal ifornia, on April 19, 1984, at 7:30 p.m. President Dalton called the meeting to order and requested the Secretary call roll. I. ROLL CALL PRESENT: Members: Carlson, Boneysteele, Stanley, Clausen, Dalton ABSENT: Members: None II. APPROVAL OF MINUTES MINUTES OF APRIL 5, 1984 1. It was moved by Member Carlson, seconded by Member Boneysteele, that the minutes of April 5, 1984 be approved as presented. There being no objections, the motion was unanimously approved. III. EXPENDITURES 1. EXPENDITURE LIST DATED APRIL 19, 1984 Member Boneysteele, member of the Budget and Finance Committee, stated he and Member Stanley had reviewed the expenditures and found them to be satisfactory. It was moved by Member Boneysteele, seconded by Member Stanley, that the Expenditure List dated April 19, 1984, including Running Expense Warrant Nos. 13565-13766 and Sewer Construction Warrant Nos. 1821-1851, be approved as presented. There being no objections, the motion was unanimously approved. IV. HEARINGS CONDUCT A PUBLIC HEARING TO CONSIDER THE REFUSE COLLECTION RATE APPLICATION BY ORINDA-MORAGA DISPOSAL SERVICE, INC. 1. President Dalton stated the purpose of this publ ic hearing is to receive publ ic comment regarding (1) the appl ication by Orinda-Moraga Disposal Service, Inc. for increases in refuse collection rates, (2) the request by the Orinda Association for increased residential collection service to include trimmings and seasonal cleanup services, and (3) the request by a resident of Moraga that self-addressed remittance envelopes be provided with the quarterly bill ing statements. Mr. Walter Funasaki, Finance Officer, stated that this publ ic hearing was set at the April 5 Board Meeting when the rate increase appl ication was presented. At that meeting, certain additional information was requested by Members of the Board related to underforecasting of expenses in the prior year, justification and cost effectiveness of a new maintenance position, the reasons for the requested increased service by Orinda residents, and the criteria to be establ ished for those residents to be permissively exempted from the expanded service and related charge. Mr. Funasaki reported that unanticipated increases in expenses resulted from the addition of a new maintenance position, a part-time employee, increases in workers' compensation, health and welfare, and employees' benefits expenses, depreciation on a new truck, and higher dumping.charges. The refuse collector will address the question of justification and cost effectiveness of the new maintenance position. A representative of the Orinda Association will be present to respond to the Board1s questions relative to expanded service. The resident of Moraga was unable to attend the publ ic hearing tonight but reiterated his request that the Board direct the refuse collector to provide self-addressed remittance envelopes. The Moraga Town Council provided a letter, which has been included in the agenda books. 04" 19 84 38 President Dalton declared the publ ic hearing open at the hour of 7:40 p.m. Mr. Sanford Skaggs, attorney for Orinda-Moraga Disposal Service, Inc., stated that Orinda-Moraga Disposal requests an 11.7% increase in rates. District staff computed a 9.7% rate increase based on standard District criteria. The difference in dollars is $39,000 on over $2,000,000 in revenues. The difference from the ratepayer1s point of view is 15ç per month per resident. Mr. Skaggs urged the Board to depart from the 95% operating ratio method used in the past to determine rate increases. According to Orinda-Moraga Disposal IS calculations, the requested rate increase would result in a 93.1% operating ratio, or a return to the company of 6.9%. In rate making, the word IIreturnll includes profit, income taxes, and interest payments. Under Orinda-Moraga Disposal's calculations, the requested rates will result in a 20% return on beginning equity, or 16.1% return on end of year equity. Mr. Skaggs requested that the Board approve the requested rate increase for the following reasons: 1 ) On a financial statement basis, the company suffered a loss of $57,000 last year; and 2) The company faces uncertainties during the coming 12 months due to the expanded service level requested in Orinda and the necessity of adding a truck. Mr. Skaggs stated that Price Waterhouse suggested several methods for use in the rate setting process. Of those suggested, the Board selected the operating ratio and return on equity methods. Mr. Skaggs stated that the Board can grant the rate increase requested and still remain within the Price Waterhouse recommended operating ratio range of 87% to 93%. In response to an inquiry from Member Clausen, Mr. Skaggs stated that the new maintenance position has not reduced costs during the current year, but unscheduled down time has practically been el iminated. A great deal of preventive work has been done and a systematic approach to maintenance has been instituted, both of which should ultimately prove cost effective. The company currently operates a fleet of 13 trucks. Mr. Duane Robinson, Member of the Board of Directors of the Orinda Association, again requested that the service level be expanded for Orinda residents to include trimmings and seasonal cleanup services. Mr. Gary Gallagher, an Orinda resident, spoke in favor of the expanded service level for Orinda residents. Ms. Kathleen Nimr, Martinez resident, expressed appreciation for the time and energy devoted by the Board and staff in this rate setting process.' Ms. Nimr suggested that the refuse collector be required to perform a com- posting operation with the trimmings collected. Since they are already separated this could be done at 1 ittle extra cost. Ms. Nimr also requested that a notice of location of the Moraga recycl ing center be included on the quarterly bill ings, that a curbside recycl ing program be investigated, and that the franchises be opened to bid. There being no further comments, President Dalton declared the publ ic hearing closed at the hour of 8:57 p.m. Following discussion, it was moved by Member Carlson that the 11.7% rate increase requested by Orinda-Moraga Disposal Service, Inc. be approved effective April 1, 1984, and that the service level for Orinda residents be expanded to include one can of trimmings weekly and three seasonal cleanups annually at a cost of $1.65 per month. Member Boneysteele requested that Member Carlson amend his motion to include the requirement that the refuse collector provide self-addressed remittance envelopes with the quarterly bill ings. The above motion was so amended by Member Carlson and seconded by Member Boneysteele. The motion failed to pass on the following roll call vote: 04 19 AYES: NOES: ABg~ Members: Members: Members: Carlson, Boneysteele Stanley, Clausen, Dalton None 39 It was moved by Member Stanley that a 9.67% rate increase be approved effective April 1, 1984 and that the service level for Orinda residents be expanded to include one can of trimmings weekly and three seasonal cleanups annually at a cost of $1.65 per month. The above motion died for lack of a second. President Dalton asked for reconsideration of the motion made by Member Carlson and seconded by Member Boneysteele, that the 11.7% rate increase requested by Orinda-Moraga Disposal Service, Inc. be approved effective April 1, 1984, that the service level for Orinda residents be expanded to include one can of trimmings weekly and three seasonal cleanups annually at a cost of $1.65 per month, and that the refuse colìector be required to provide self-addressed remittance envelopes with the quarterly bill ings. (Resolution No. 84-045). The motion was approved on the following roll call vote: AYES: Members: NOES: Members: ABSTAIN: Members: ABSENT: Members: Carlson, Boneysteele, Dalton Clausen Stanley None It was noted for the record that Member Clausen voted No for the reason that insufficient publ ic request was received to require the refuse collector to provide self-addressed remittance envelopes. President Dalton declared a recess at the hour of 9:17 p.m., recon- vening at the hour of 9:28 p.m., with all parties present as heretofore designated. HOLD A PUBLIC HEARING ON DISTRICT ANNEXATION 86 AS AMENDED BY THE LOCAL AGENCY FORMATION COMMISSION 2. President Dalton stated the purpose of this publ ic hearing is to receive pub! ic comment regarding District Annexation 86 as amended by the Local Agency Formation Commission. Mr. Roger J. Dolan, General Manager- Chief Engineer, reported that staff is not aware of any protests to the annexation. President Dalton declared the publ ic hearing open at the hour of 9:30 p.m., and there being no appearances either in favor of or in opposition to the matter at hand, the publ ic hearing was declared closed. . It was moved by Member Clausen, seconded by Member Stanley, that resolutions be adopted concurring with the Negative Declaration and ordering annexation of all parcels as amended by Local Agency Formation Commission. (Resolution Nos. 84-040, 84-041,84-042, and 84-043). The motion was unani- mously approved on the following roll call vote: AYES: NOES: ABSENT: Members: Members: Members: Carlson, Boneysteele, Stanley, Clausen, Dalton None None v. CONSENT CALENDAR It was moved by Member Carlson, seconded by Member Stanley, that the Consent Calendar, consisting of two items, be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. Completion of District Annexation No. 86-A was ordered (Resolution No. 84-044). 1. 2. Sewer Construction Funds in the amount of $3,750.00 to convert the existing underground gas tank for diesel fuel storage at CSO, were authorized. There being no objections, the above motion was unanimously approved. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 04 19 84 40 VI. ENGINEERING 1. AUTHORIZE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH EMCON ASSOCIATES FOR PRELIMINARY PLANNING FOR THE DISTRICT LANDFILL PROJECT; AUTHORIZE $38,900 IN SEWER CONSTRUCTION FUNDS Following explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Stanley, seconded by Member Boneysteele, that the expenditure of $38,900 in Sewer Construction Funds for prel iminary planning for the District Landfill Project be authorized and the General Manager- Chief Engineer be authorized to execute an agreement with EMCON Associates to provide professional engineering services related to the project on an hourly basis at a cost not to exceed $20,000. Motion was unanimously approved on the following roll call vote: AYES: NOES: ABSENT: Members: Members: Members: Carlson, Boneysteele, Stanley, Clausen, Dalton None None 2. AUTHORIZE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH BECHTEL CIVIL AND MINERALS, INC. FOR NECESSARY IMPROVEMENTS TO THE MULTIPLE HEARTH FURNACE ASH HANDLING SYSTEM Mr. Dolan, General Manager-Chief Engineer, advised that improvements to the Multiple Hearth Furnace ash handl ing system are necessary due to a potential dusting problem. No additional funds are required for this work. It was moved by Member Carlson, seconded by Member Clausen, that the General Manager-Chief Engineer be authorized to execute an agreement with Bechtel Civil and Minerals, Inc. for professional services in conjunction with the Multiple Hearth Furnace Project. There being no objections, the motion was unanimously approved. 3. AUTHORIZE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH JOHN CAROLLO ENGINEERS FOR IMPROVEMENTS TO THE MULTIPLE HEARTH FURNACE INSTRUMENTATION AND FUEL SYSTEMS Mr. Dolan, General Manager-Chief Engineer, reported that funds for this work will come from the Multiple Hearth Furnace Project budget previously authorized by the Board. It was moved by Member Stanley, seconded by Member Clausen, that the General Manager-Chief Engineer be authorized to execute an agreement with John Carollo Engineers for professional engineering services in conjunction with the Multiple Hearth Furnace Project. There being no objections, the motion was unanimously approved. 4. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH JOHN CAROLLO ENGINEERS FOR PROFESSIONAL ENGINEERING SERVICES IN CONJUNCTION WITH THE CONCORD CONTRACT DISPUTE; AUTHORIZE $30,900 IN SEWER CONSTRUCTION FUNDS Following explanation by Mr. Dolan, General Manager-Chief Engineer, Member Clausen requested that consideration of this matter be held until after discussion of pending I itigation in closed session. Board Members voiced no objection to the request and proceeded with the order of the agenda. AUTHORIZE $55,000 FROM THE SEWER CONSTRUCTION FUND FOR PHASE II OF THE MARTINEZ SEWER RENOVATION PROJECT 5. After explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Stanley, seconded by Member Carlson, that $55,000 be authorized from Sewer Construction Funds for Phase II of the Martinez Sewer Renovation Project. Motion unanimously approved on the following roll call vote: AYES: NOES: ABSENT: Members: Members: Members: Carlson, Boneysteele, Stanley, Clausen, Dalton None None 04 ],9 84 41 6. AUTHORIZE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH H. J. DEGENKOLB ASSOCIATES FOR DESIGN OF SIESMIC MODIFICATIONS TO TREATMENT PLANT BUILDINGS AND EQUIPMENT; AUTHORIZE $113,800 FROM SEWER CONSTRUCTION FUNDS Following explanation by Mr. Dolan, General Manager-Chief Engineer, and discussion of grant funding, it was moved by Member Carlson, seconded by Member Boneystee1e, that the General Manager-Chief Engineer be authorized to execute a lump sum contract with H. J. Degenko1b Associates and that $113,800 in Sewer Construction Funds be authorized for design of treatment plant seismic structural modifications. Motion was unanimously approved on the following roll call vote: AYES: NOES: ABSENT: Members: Members: Members: Carlson, Boneystee1e, Stanley, Clausen, Dalton None None VII. PERSONNEL 1. ADDITION OF TWO OPTIONS TO THE BENEFIT OPTION PLAN FOR THE PLAN YEAR BEGINNING MAY 1, 1984 It was moved by Member Carlson, seconded by Member Clausen, that the addition of the following two options to the District's Benefit Option Plan at no additional expense be approved: (1) tuition reimbursement in pursuit of a college degree; (2) hearing aids reimbursement. There being no objec- tions, the motion was unanimously approved. 2. DESIGNATE YVONNE BROWN, ADMINISTRATIVE ASSISTANT, TO CONFIDENTIAL STATUS UNDER THE JOB TITLE OF ADMINISTRATIVE SECRETARY, EFFECTIVE MAY 1, 1984 It was moved by Member Clausen, seconded by Member Carlson, that Yvonne Brown be designated a confidential employee by reclassifying her to Administrative Secretary (Range S 60-D, $2,411), effective May 1, 1984, and deleting her present classification of Administrative Assistant (Range G 60-D, $2,401). There being no objections, the motion was unanimously approved. 3. APPROVE PERSONNEL BUDGET REQUESTS FOR FISCAL YEAR 1984-1985 Mr. Dolan, General Manager-Chief Engineer, advised that the Personnel Budget Requests for Fiscal Year 1984-1985 were discussed and received AprilS, 1984. It was moved by Member Clausen, seconded by Member Carlson, that the Personnel Budget for Fiscal Year 1984-1985 as identified by Items 1 to 15 be approved and authorization given for commencement of Safety and Loss Control Special ist recruitment with the salary to be estab1 ished upon review. There being no objections, the motion was unanimously approved. VIII. ITEMS LATE FOR THE AGENDA 1. ACCEPT THE CONTRACT FOR CONSTRUCTION OF FLUSHKLEEN PUMP STATION CAPACITY IMPROVEMENT, ORINDA (PROJECT 2553) AND AUTHORIZE FILING OF THE NOTICE OF COMPLETION It was moved by Member Carlson, seconded by Member Stanley, that the contract for construction of Flushk1een Pump Station Capacity Improvement (Project 2553) be accepted and the fi1 ing of the Notice of Completion authorized. There being no objections, the motion was unanimously approved. IX. REPORTS 1. GENERAL MANAGER-CHIEF ENGINEER None 2. COUNSEL FOR THE DISTRICT None 04 19 84 42 3. SECRETARY OF THE DISTRICT None 4. BOARD MEMBERS None X. MATTERS FROM THE BOARD NOT ON THE AGENDA a. Member Boneysteele and the full Board commended Finance Officer Walter Funasaki and District staff on the excellent analysis of the Orinda- Moraga Disposal Service garbage rate increase appl ication and the smooth manner in which the hearing proceeded. Following discussion of the 95% operating ratio, staff was requested to furnish the Board with further information on operating ratio calculations for future rate setting. b. It was moved by Member Carlson, seconded by Member Boneysteele, that Board Members and District staff as designated by the General Manager- Chief Engineer be authorized to attend the CASA meeting on May 10, 11, and 12, 1984. There being no objections, the motion was unanimously approved. XI. CLOSED SESSION At 10:12 p.m., President Dalton declared a closed session to discuss pending 1 itigation and/or personnel matters. At 10:28 p.m., President Dalton concluded the closed session and reconvened the meeting into open session. President Dalton then departed from the order of the agenda to consider the following: VI. ENGINEERING 4. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH JOHN CAROLLO ENGINEERS FOR PROFESSIONAL ENGINEERING SERVICES IN CONNECTION WITH THE CONCORD CONTRACT DISPUTE; AUTHORIZE $30,900 IN SEWER CONSTRUCTION FUNDS It was moved by Member Clausen, seconded by Member Carlson, that the General Manager-Chief Engineer be authorized to execute a contract with John Carollo Engineers on an hourly basis at a cost not to exceed $33,050; and $30,900 in Sewer Construction Funds be authorized. Staff was directed to estab1 ish a receivable account for Concord covering the costs of tasks one and two and the associated District staff force account costs. The motion was unanimously approved on the following roll call vote: AYES: NOES: ABSENT: Members: Members: Members: Carlson, Boneysteele, Stanley, Clausen, Dalton None None President Dalton then reverted to the order of the agenda. XI. CLOSED SESSION At 10:29 p.m., President Dalton declared a closed session to discuss pending 1 itigation and/or personnel matters. At 10:44 p.m., President Dalton concluded the closed session and reconvened the meeting into open session. XII. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None XIII. ADJOURNMENT At 10:46 p.m., President Dalton adjourned the meeting. 04 19 84 43 lo-cx~ - J President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 04 1 ~} 84