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Home My WebLink AboutMINUTES - 04061993 - S.3 AP.Fti 5 - 9 ,3 F•10 M 1 2 45 0 P _ 0 1 S. 3 TO: BOARD OF SUPERVISORS Contra FROM. :t Supervisor Tom Torlakson �;.- Costa T DATE: April 6, 1993 y oy _.N`*�` CountJ SUBJECT: REPORT ON ACTIVITIES OF THE DELTA DIABLO SANITATION DISTRICT SPECIFIC AEOUEST(S)OR RECOMMENDATIONS)A BACKGROUND AND JUSTIFICATION t 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 over $150,000 in salary and benefits by appointing the Acting General Manager at the appoximate current salary and eliminating the Assitant General Manager position. CONTINJED ON ATTACHMENT: YES SIGNATURE: AIECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER IIGNATVR�Zi.�. ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS 18 A TRUE UNANIMOUS(ABSEuY 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 PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY AD"NISTRATOR BY ,D EPU- MJB? It0�B81 , APR - 5 - 93 MOM 1 2 :.4r=. .0 P - 02 Aril 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 s«ving of over $150, 000; and because I feel a $150,00-plus salary bEinefit 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 I percent. APR - 5 - 93 MOM 12 :•47 .0 P _ 03 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 stivings ) . 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, Supervisor Tom Torlakson Tom Torlakson Supervisor, District Five +r 300 East Leland RoadSuite 100 Contra Costa County Pittsburg,California 94565-4961 Board of Supervisors (510)427-8138 January 17, 199.3 Mayor Joel Keller, City of Antioch Councilman Joseph L. Canciamilla, City of Pittsburg Delta Diablo Sanitation District Board of Directors 2500 Pittsburg/Antioch Highway Antioch, CA 94509 Dear Mayor Keller and Councilman Canciamilla: As a follow-up to the Board's discussion and direction Wednesday, January 13, 1993, regarding the real possibility of losing our AB 8 property tax ($1 million) and the recommendation I made regarding a freeze, our acting General Manager will report back next month on a couple of areas where we can address this fiscal crisis situation. In my own preliminary view, I believe we should implement a freeze and direct staff to ..reduce operations by the full amount of AB 8 loss . This should include consideration of the ;timing of the- plant expansion and an analysis on what additional operating cost the expansion would add to our operating budget. What funds, if any, could be used to offset rate increases that are now being utilized in the plant expansion fund or capital program? Also, if there are significant operational costs, we should consider delaying the plant expansion-=or consider building it at low construction prices available now but not fully occupying it. While the expansion is almost entirely funded out of connection and annexation fees, there is an issue regarding the capital reserves budget. This bears further examination. Some of those funds could be used to offset revenue loss and reduce the need for rate increases and, therefore, should not be used in the plant expansion. Mayor Joel Keller Councilman Joe Canciamilla January 17, 1993 Page TWO We have had an excellent record of keeping rates figures down. We should continue to strive to do that in these particularly hard times when many other government agencies will be going to the public for new fees, rate increases, or taxes . I urge that we strive for a "no rate increase" budget. This should be our target and we should direct staff to do everything possible to achieve it. Sincerely, r Tom Torlakson TT:gro cc: Mike Alexander, Acting General Manager .'1 %r GENERAL MANAGER - BENEFITS (ANNUALLY) BENEFITS: DISTRICT PAYS ANNUALLY: INSURANCE: MEDICAL $4,774.56 ($397.88 x 12) DENTAL $1,514.88 ($126.24 x 12) VISION $ 231.96 ($19.33 x 12) LIFE v $1,038.60 ($200,000 policy - $86.55/mo.) LTD $ 590.00 ($100,000 - 12 = $8333.33 - : RETIREMENT! $24,790.48 SOCIAL SECURITY: $3,571.20 _ VACATION: $5,969.60per days 15 ( Y P year) --- -- ADMINISTRATIVE LEAVE: $5,769.60 (10 days per year) Assumptions:... . . Age 50 v Salary $100,000/year .Deferred Compensation @10% of salary -- - CaA- AofjCc�.. SOPr�I 'r