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HomeMy WebLinkAboutMINUTES - 04271993 - S.4 TO: BOARD of suPERVisoxs �c.... .• 9 Contra FROM: ' r Supervisor Tom Torlakson •r Costa - April 6 1993 Z' County y DATE: p � SUBJECT: REPORT ON ACTIVITIES OF THE DELTA DIABLO SANITATION DISTRICT SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDED ACTIONS: 1 . Acknowledge receipt of this quarterly report on activities of the Delta Diablo Sanitation District. 2 . Direct the County Administrator to send a letter to the Delta Diablo Sanitation District Board of Directors. expressing the Board of Supervisors, support for my recommendations :to; implement a freeze and reduce plant operations by the full amount of .'the AB 8 loss . The letter should also express . support for my stand against hiring a new general manager and saving 'bver $150,000 in salary and benefits by appointing the Acting General Manager at the appoximate current salary and eliminating the Assitant General Manager position. CONTINUED ON ATTACHMENT: YES SIGNATURE: //Vr� l dnwc0 r RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE (S): ACTION OF BOARD'ON 71, 1,9 ,7 APPROVED AS RECOMMENDED .. OTHER v ' • VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABS E AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT:- ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. ATTESTED 2- /-7 y 3 cc : County Administrator PHIL BATCHE OR.CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADM)NISTRATOR By ,DEPUTY M3E2 (10/8e) - i V April 6 , 1993 QUARTERLY REPORT ON ACTIVITIES OF THE DELTA DIABLO SANITATION DISTRICT BOARD OF DIRECTORS As most Board members are aware, Delta Diablo provides direct sewer treatment services for Antioch, Pittsburg and West Pittsburg. In addition, the district oversees street sweeping services for these communities and contracts with Discovery Bay to provide maintenance and operations of the Sanitation District No. 19 sewer and water systems and provides lab services for Ironhouse Sanitation District. The district has 86 employees and an operations budget of $8 million. The following are key actions taken by the Delta Diablo Sanitation District Board of Directors during the past four months : 1 . The Delta Diablo Board selected Paul Causey as the new General Manager. I voted against a motion to fill the General Manager position. While I expressed confidence in Mr. Causey, I voted against the motion because of the difficult economic times and likely budget crisis; because of the confidence I have in the existing Acting General Manager, Mike Alexander, and other members of the Delta Diablo staff to carry on an efficient and progressive management of the District; because appointing the Acting General Manager to that position and leaving the assistant position vacant would result in a saving of over $150,000; and because I feel a $150, 00-plus salary benefit package for a General Manager is excessive in these times for a district of this size. 2 . Authorized the General Manager to contact PG&E to schedule a plant energy audit. This is a free service the utility provides . It is anticipated that $40,000 annual cost savings will result from the audit. 3 . Authorized moving forward with the refinancing of 1988 Certificates of Participation. The district has received a report that the district's savings will be $335,000 if the refinancing proceeds at this time. 4 . Received report from district staff regarding the renewal of the district's dental plan. The premium increase anticipated for this year would be 8 percent. However, staff has proposed that the group be underwritten as an individual group and requested new rates which resulted in a decrease of 1 percent. r _ Quarterly Report to the Board of Supervisors on Activities of the Delta Diablo Sanitation District Board of Directors April 6 , 1993 Page Two 5 . Received a report that eliminating the seldom used maintenance contract on the telephone system and also on the majority of computers has resulted in a savings of $20,000 annually. 6 . Authorized the refinancing of 1979 Sewer Revenue Bonds . The current refinancing is projected to save the district about $10,000 in annual debt service or a net present value of over $100, 000. 7 . Negotiated with the contractor and the City of Pittsburg on the the Harbor Street Force Main project. These negotiations will result in substantial project savings of approximately $100, 000 . 8 . Reduced use of outside management consultants for a savings to the district of $50,000 annually. 9 . Negotiated exemption from property tax shift ($500, 000/annual savings ) . 10 . Authorized value engineering of the Plant Expansion Project for a $1 million one-time cost saving. 11 . Authorized value engineering of the Cogeneration project for a one-time saving of $100, 000 . 12 . As part of the effort to look at ways to offset the loss of property tax monies, I recommended the implementation of a policy that would require the General Manager to get the Board's approval for filling staff openings . Along these lines, the Board acted to defer filling a Maintenance Repair Training position for a savings of approximately $39 ,000 . Submitted by, 1_1 K_ Supervisor Tom Torlakson