Contra Costa Water District

CONTRA COSTA WATER DISTRICT

BOARD OF DIRECTORS

REGULAR MEETING

November 1, 2006

MINUTES

CALL TO ORDER

President Campbell called to order a regular meeting of the Board of Directors of the Contra Costa

Water District at 6:30 p.m., at 1331 Concord Avenue, Concord, the regular meeting place of the Board.

ROLL CALL

Directors Present: Joseph L. Campbell, President

Elizabeth R. Anello, Vice President

Bette Boatmun

John A. Burgh

Karl L. Wandry

General Manager: Walter J. Bishop

Legal Counsel: Robert B. Maddow

District Secretary: Sharon L. Burris

PLEDGE OF ALLEGIANCE

Watershed and Lands Manager Bill Chilson led the Pledge of Allegiance.

ADOPTION OF AGENDA

Mr. Bishop reported that there were no changes to the agenda.

PUBLIC COMMENT

President Campbell asked if there were any public comments. There were no public comments.

CONSENT

1. Approve Directors’ Services/Business and Travel Expenses

a. Future Services – November/December

b. Expenses – October

c. Compensation – October

2. Approve the warrant register dated November 2, 2006.

3. Adopt Resolution No. 06-33 authorizing approval of the Contra Costa Water District 2006 Water Management Plan as required by the United States Bureau of Reclamation.

4. Authorize execution of a two-year contract and an optional one-year extension with BioMaas LLC for biological mitigation monitory services, in an amount not to exceed $450,066. Any work authorized in FY09 and FY10 will depend on the Board adoption of the budget.

5. Authorize execution of agreement with Ironhouse Sanitary District to facilitate East County projects.

Director Boatmun had a question concerning Agenda Item No. 5 – Authorize execution of agreement with Ironhouse Sanitary District to facilitate East County projects. Responding to her question concerning the effect to the District’s water supply, Mr. Bishop replied that the impact would be insignificant.

MOTION: Wandry/Anello to approve the consent calendar. The motion carried by a unanimous voice vote.

DISCUSSION & INFORMATION

6. Receive report and comment on the adoption and implementation of the East Contra Costa County Habitat Conservation Plan.

Mr. Bishop noted that Director of Planning Jerry Brown would be making a presentation on the remaining activities that would lead to full implementation of the Habitat Conservation Plan (HCP).

Mr. Brown advised that there was no action for the Board to take at this time and that the presentation was being provided as information only. The presentation included background information on the HCP. He reported that the conditions in CCWD’s biological opinions limited water deliveries to 148,000 acre-feet until the HCP was completed and permits were issued. The HCP began in June 2000 and was nearing completion. Plan participants were identified as the cities of Brentwood, Clayton, Oakley and Pittsburg; Contra Costa County; East Bay Regional Park District and CCWD.

Mr. Brown reported that the HCP conserves natural land while sustaining economic development. The HCP covers approximately 185,000 acres in the East County, with approximately 30,000 acres of land that needs to be conserved and mitigated. He reported that over 200 “special status” plants and animals were addressed in the plan. Incidental take permits for a 30-year term would be issued to the cities and counties, who would be responsible for enforcing the requirements.

Referencing a map, Mr. Bishop noted an area that would not be included in the HCP and identified it as the City of Antioch (City). Responding to a question from Vice President Anello asking if the City had an interest in participating in the Plan, Mr. Bishop replied that the City had been invited to participate but had declined. Director Boatmun reported that during the HCP meetings that the City was allowed to buy-in at a pro-rated basis and that there was a deadline. The City had not shown an interest in participating and that the deadline had passed.

President Campbell commented that the District had provided great leadership establishing the HCP and gave a brief history on how it originated.

Director Wandry asked for an explanation on the overlap with the wetland permits. The U.S. Army Corp of Engineers still had some special requirements that they feel they need to impart through their own process.

Mr. Brown reported that an implementing entity would be formed under a Joint Powers Authority (JPA) to ensure compliance with the plan and permit requirements. The total cost to implement the HCP was estimated to be approximately $300 million. The sources of funds included fees, grants, and local funding. The majority of the funds would go to land acquisition and preserve management. A separate entity would manage the land.

Mr. Brown advised that the District had contributed $405,000 for the project over the past six years. The total cost of the project was projected to be approximately $1.8 million. The portion that the District did not fund had come mostly through grants and a few contributions from the participating cities and other entities that wanted specific species reviewed as part of the HCP.

Mr. Brown reviewed the implementation schedule and reported that the last meeting of HCPA – Executive Governing Committee (EGC) would be held on November 8. A vote would be taken at the meeting to certify the Environmental Impact Report. The committee would also vote whether to adopt the Plan and recommend that the cities involved adopt the Plan. He reported that the HCP, the Environmental Impact Report (EIR), the implementation agreement, and the JPA agreements would go to the cities and counties individually, and they will each take actions to adopt or certify as a participant in the JPA. Incidental take permits were scheduled to be issued in March/April 2007, and the District would be relieved of the 148,000 acre-feet delivery restriction in June 2007.

Responding to Director Wandry’s question concerning if the Department of Fish and Wildlife (DFW) would certify the Environment Impact Study, Mr. Brown replied yes, the DFW would take the appropriate action and write a biological opinion. Director Wandry asked if the EGC had the authority approve the EIR. Mr. Brown responded that as the lead agency they have the authority to certify it.

Vice President Anello commented positively on the HCP and the total cost. President Campbell noted that he includes the HCP in his list of the District’s top accomplishments. Mr. Bishop agreed and commended Mr. Brown and the Planning staff on an excellent job. He also thanked the Board for their positive role and consistency with the HCP.

Responding to a question from Director Wandry concerning why there wasn’t a Central and West County HCP, Mr. Brown advised that the East County area was viewed as where the County would predominantly grow.

President Campbell asked if there were any other comments on the item. There were no other comments.

Director Wandry congratulated staff on the long, arduous project and how the costs were contained.

It was the consensus of the Board that the report had been received.

7. Review and comment on the draft Government Accounting Standards Board (GASB) Standard 45 Compliance Plan.

Mr. Bishop reported that Director of Finance Karen Ustin would be making a presentation on GASB 45. He noted that the item had been overseen by the Finance Committee, and that the Board had transferred $3 million into the related reserve fund on September 20, 2006.

Ms. Ustin reminded the Board that the District was contractually obligated to pay for retiree medical benefits. The District plans for these benefits in the two-year budget, the Capital Improvement Plan and the Ten-year Financial Plan and rate model. She reviewed the GASB 45 standard reporting requirements and advised that staff had worked with the Finance Committee to develop a draft compliance plan. The compliance plan consisted of a trust fund arrangement and funding approach over 30 years that would not impact rates. She reviewed the key elements of the plan and identified them as initial actuarial analysis results, the Other Post Employee Benefits trust funding plan, trust fund vehicle selection, and trust establishment scheduled.

Ms. Ustin reported that funding alternatives were explored and concluded that a Section 115 Governmental Trust would be the most beneficial funding mechanism for the District. Mr. Bishop noted that when the Los Vaqueros debt was retired that there would be money available each year due to rate-funded expenditures that the District would no longer incur. The Board would have the flexibility to invest those monies in the Governmental Trust Fund. A review of the schedule indicated that the anticipated date to have the trust fund established and initial funds deposited would be in July 2007.

Director Boatmun commended District staff for a job well done. Vice President Anello also commended Ms. Ustin and staff for the work done on this very important plan. President Campbell expressed his appreciation and thanked Ms. Ustin for her efficiency in summarizing the compliance plan.

President Campbell asked if there were any other comments. There were no other comments.

REPORTS FOR DISCUSSION

8. Schedule Future Meeting Dates and Times

Mr. Bishop reported that the Employee Holiday Luncheon would be held on December 14 at Centre Concord. He also reported that the Board Study Session and the Contra Costa Council USA event would both be held on January 25, 2007.

Director Boatmun advised that she would be attending the Contra Costa Council luncheon for Representative Ellen Tauscher on November 3.

REPORTS

9. General Manager

Mr. Bishop reported that he would be going to Thailand to assist in setting up a water and wastewater leadership center in Asia. He would be leaving on November 17 and would be returning November 22.

10. Legal Counsel

Mr. Maddow reported on a case that the Board had previously been briefed about in closed session. He advised that through a summary judgment the District had been dismissed from the case of Bergstrom vs. CCWD. He also advised that efforts would be made to pursue recovery of District costs.

11. Board Members

Vice President Anello reported that she would be speaking at the Martinez City Council meeting immediately after the Board meeting. She also reported that she would be attending the Retirement Committee meeting on November 17.

Director Wandry reported that he would be speaking at the Oakley City Council meeting on November 13 and at the Antioch City Council meeting with Director Boatmun on November 14.

Director Burgh reported that he was unable to the Bay Area Water Forum (BAWF) meeting on October 30 and the BAWF Water and Land Use Committee meeting on October 31 due to being out of town on a family emergency. He thanked President Campbell on behalf of the Board for his efforts and personal time and attention to deliver the Board’s resolution to Ms. Phyllis Roff under difficult circumstances.

President Campbell noted that he was able to deliver the resolution to Ms. Roff prior to her passing.

Director Boatmun reported that she attended the ACWA Region 5 meeting on October 22 and 23, where she toured the Camanche Reservoir and Pardee Dam. She advised that the ground breaking ceremony at Freeport did not take place as scheduled. She also reported that she brought back informational materials from the event to share with the Board.

President Campbell reported that he presented at the Concord City Council meeting on October 24, where a question was asked concerning District security. He advised that he does not go into depths on security due to the sensitivity of the subject. He also reported that he received a letter from Mr. and Mrs. Malucelli commenting positively on the professionalism of District staff during a tour of District facilities that they had taken on October 13.

ADJOURNMENT

At 7:17 p.m., President Campbell adjourned the meeting to the next regular meeting of the Board of Directors scheduled for November 15, 2006, commencing at 6:30 p.m.

Joseph L. Campbell, President

Sharon L. Burris

District Secretary