CONTRA COSTA WATER DISTRICT

BOARD OF DIRECTORS

REGULAR MEETING

November 15, 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

 

Accounting Manager Brice Bledsoe led the Pledge of Allegiance. 

 

ADOPTION OF AGENDA

 

Mr. Bishop reported that there were no changes to the agenda.  There was a revised docket before the Board for Agenda Item No. 6. – Amendment for Professional Services for the Randall-Bold Sedimentation Basin Project.  The revisions addressed minor administrative corrections in the docket.   

 

PUBLIC COMMENT

 

President Campbell advised that he had a speakers’ card from Local 39 Business Representative Lynn Long and invited her to the podium.  Ms. Long addressed the Board and reported that she and Local 39 employees were present due to recent disciplinary actions taken by the District.   

 

Ms. Long opined that there has been a marked increase in discipline and severity of discipline over the last year.  She requested the Board to direct staff to provide Local 39 the level and frequency of discipline for the last two years, and that the District review whether progressive discipline was followed.  Ms. Long also noted that after receiving the information she would like to meet with District management and the Local 39 shop stewards to review the information and explore the possibility of better ways to accomplish the District’s goal. 

 

Ms. Long referenced the District’s Code of Ethics and commented that it should apply to all employees of the District. 

 

Director Wandry asked Ms. Long for clarity of the number of years of discipline records she would like to review.  Ms. Long stated that it would be helpful to look at the last two years.  Director Wandry asked if the last two years was when the increase in discipline was noticed.  Ms. Long noted that that was her perception.  Director Wandry asked why Local 39 picked two years and asked if it was arbitrary.   Ms. Long stated it was an arbitrary number but she was willing to look at whatever information the District would like to share.  Director Wandry thanked Ms. Long.

 

President Campbell commented that employees were always welcome at Board meetings.  He also commented that it would not be appropriate for the Board to comment on personnel matters.  He reported that the Board would react appropriately to what was said and that he could not comment on the specifics.  Ms. Long indicated that she understood and would explain it to the employees. 

 

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

 

CONSENT

 

1.   Approve Directors’ Services/Business and Travel Expenses

      a.   Expenses – October

 

2.         Approve the minutes of October 18, 2006. 

                 

3.         Approve the warrant register dated November 16, 2006.

 

4.         Authorize execution of an agreement with Public Policy Advocates for government relations services for an amount not to exceed $90,000 with an option to extend the term for FY08 in an annual amount not to exceed the approved budget.

 

5.         Authorize an agreement with RMC to provide consultant services related to the Future Water Supply Study 2007 Update, for a total cost not to exceed $200,000.

 

6.         Amendment for Professional Services for the Randall-Bold Sedimentation Basin Project

a.       Authorize a transfer of $120,500 from the Construction Department FY07 Construction Services budget for the Randall-Bold Sedimentation Basin Project to the Engineering Professional Services budget; and

b.       Authorize execution of an amendment to the November 2003 agreement with Black and Veatch for water treatment design services for the Randall-Bold Sedimentation Basins Project, for a total contract not to exceed $1,220,500. 

 

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

ACTION

 

7.         Authorize execution of a contract with Valentine Corporation for the construction of the Martinez Dam Instrumentation Improvements Project in the amount of $708,369, with a 10% change order authority of $70,837, for a total amount not to exceed $779,206.

 

Mr. Bishop reported that this item was on the action calendar due to the dollar amount of the contract.  He advised that four bids were received on the project and Valentine Corporation was the apparent low bidder.  The bid was within the Districts 15 percent estimating benchmark.    

 

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

 

MOTION:  Boatmun/Burgh to authorize execution of a contract with Valentine Corporation for the construction of the Martinez Dam Instrumentation Improvements Project in the amount of $708,369, with a 10% change order authority of $70,837, for a total amount not to exceed $779,206.  The motion carried by a unanimous voice vote.

 

8.         Adopt Resolution No. 06-34 to:

            1.   Certify the adequacy of the Environmental Impact Report for the Alternative Intake Project;

            2.   Adopt the California Environmental Quality Act findings, mitigation measures, Mitigation Monitoring Program, and Statement of Overriding Considerations; and

      3.   Approve the Alternative Intake Project. 

 

Mr. Bishop noted that Principal Engineer Samantha Salvia would be making a presentation on the item.  He also noted that the comments received and the responses to those comments were reviewed at the Board meeting on November 1.  He advised that the process was largely guided by the California Environmental Quality Act (CEQA) guidelines.  

 

President Campbell reviewed the process that would take place for the item and noted that the public would have the opportunity to address the Board after the presentation.  He also commented that there was a memo and letter before the Board dated November 15, 2006.  He advised that the letter was from Victoria Islands, was received after the comment period, and that it would be put into the record and recognized that the letter was received. 

 

Mr. Bishop reported that even though the letter was received after the comment period, that staff had gone through the comments received in the letter to ensure that the record before the Board had addressed all of the comments and that none of the comments received in the letter were new.   

 

Ms. Salvia’s presentation began with the project’s background.  She identified the Alternative Intake Project (AIP) as the most significant drinking water quality improvement project on the CALFED list to complete its planning studies and be ready for design and construction.  The District had initiated the AIP in July 2004.  The Draft Environmental Impact Report/Environmental Impact Study (EIR/EIS) was released in May 2006 and the Final EIR/EIS was released in October 2006.  She reported that the project would provide water quality benefits to all District customers while not adversely affecting Delta water resources and would provide a benefit to Delta fisheries. 

 

Ms. Salvia reported that the project was a 250 cubic foot per second intake, a buried pipeline across Victoria Island and modified operations to provide additional protection for fisheries.  This alternative was found to be environmentally superior under CEQA and was analyzed as Alternative No. 3 in the documentation.

 

Ms. Salvia advised that 16 comment letters were received on the draft environmental document and one additional letter was received on November 15, 2006 on the Final EIR.  The comments were categorized into the three categories:  water resources, agriculture, project timing and relationship to other Delta actions.  Staff had carefully reviewed all comments and provided responses and copies of the comment letters in the final report.  Staff added additional mitigation measures to address some of the concerns that had been raised about Victoria Island Farms and potential effects on farming operations.  None of the conclusions in the Draft EIR were changed in the Final EIR based on comments received. 

 

Ms. Salvia reviewed the resolution before the Board and identified the six parts as certifying the adequacy of the EIR; adopting mitigation measures to reduce impacts to less than significant; adopting a mitigation monitoring program to ensure that the mitigation measures are carried out; adopting the CEQA Findings and Statement of Overriding Considerations; approving the project and directing the General Manager to file a Notice of Determination with the County Clerk. 

 

President Campbell thanked Ms. Salvia for the time given to the Board to review the document in preparation for the Board meeting.  He also thanked Ms. Salvia for the updates that the Board had received throughout the process of the project.

 

President Campbell asked if there were questions for Ms. Salvia.

 

Responding to a question from Director Boatmun about the five-foot depth for farming on Victoria Island and the range, Mr. Bishop responded that the island is below sea level and the pipe will be below the island water table.  He also commented that asparagus is farmed on the island and the root zone is 4 ½ feet deep.  The property owner has requested that the pipe be placed deeper so the farming operations can rip the soils over the pipeline.  Discussion took place on the depth of soil needed for farming asparagus.  Mr. Bishop also advised that Ms. Salvia had met with the property owner many times during this process and the District had designed the project to accommodate the land owners farming operation.  In the event the pipeline depth impacts the farming operations, the property acquisition process will consider severance issues. 

 

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

 

Director Wandry thanked Ms. Salvia and staff for the work done on the project and particularly in answering the comments.  He opined that some of the comments were very deep and very insightful and the responses handled them very well.  He emphasized that this proceeding incorporates the findings, the mitigation monitoring program, statement of overriding considerations by reference as part of the record in the hearing before the Board and that the Board consider those things specifically in the actions and asked that those be incorporated by reference. 

President Campbell noted that for clarity he would read the recommended action before the Board. 

 

MOTION:  Wandry/Boatmun to adopt Resolution No. 06-34 to:  1) Certify the adequacy of the Environmental Impact Report for the Alternative Intake Project; 2) Adopt the California Environmental Quality Act findings, mitigation measures, Mitigation Monitoring Program, and Statement of Overriding Considerations; and 3) Approve the Alternative Intake Project.  The motion carried by a unanimous voice vote. 

 

9.                   Accept the FY06 audited financial statements. 

 

Mr. Bishop reported that staff was prepared with a presentation if the Board chose to have one.  He advised that the District had received an unqualified, clean audit from Maze and Associates, the District’s auditors.  He reminded the Board that the audit included financial statements for the District, the Contra Costa Water Authority, and the District’s Retirement Plan for Fiscal Year 2006 (FY06).   

 

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

 

MOTION:  Boatmun/Wandry to accept the FY06 audited financial statements.  The  motion carried by a unanimous voice vote. 

 

DISCUSSION & INFORMATION

 

10.               Review and comment on the assumptions for the 2007 water rate analysis. 

 

Mr. Bishop advised that Director of Finance Karen Ustin would be making a presentation on the assumptions.  He noted that this year differs from previous years due to Proposition 218 and that all ratepayers would be receiving notification that the Board would be considering a rate increase with a range of up to three percent.   

 

Ms. Ustin’s presentation included the changes that had occurred since the Board’s adoption of the Capital Improvement Plan (CIP) and Ten-Year Financial Plan in February 2006.  She reported that there was a potential that the entire $30 million of outside funding that was anticipated in the CIP for the AIP may not be obtained.  She advised that in May 2006 lower operating budgets were adopted than were assumed in the CIP.  The District was proposing that the adopted budgets become the base years of the CIP and then be inflated from that point forward resulting in lower operating budgets in the full ten-year period than included in the CIP.  She also advised that the District would be receiving a refund from United States Bureau of Reclamation in the amount of $2.2 million on the FY05 water rates.  Based on positive financial performance in FY06 the District is proposing to have higher beginning reserve balances of $2.9 million.

 

Ms. Ustin reviewed and identified the key assumptions for the FY06 rate analysis. She reported that the total consumption would remain consistent with the 2007-2016 CIP and inflation was estimated at three percent through FY09, with an historical average of four percent for the remaining period.  Interest earnings of four percent were incorporated through FY08, with an historical average of five percent for the remaining period.  In addition, applying inflationary increases to specific components Facilities Reserve Charge (FRC) was consistent with the FRC Study the study the Board accepted in 2003.  Capital projects were consistent with the 2007-2016 CIP adjusted for re-budgets from FY06 to FY07.  The District would not be assuming any new long-term debt except for the new water treatment plant for Brentwood, which would not impact rates.  She advised that consistent with the Board’s rate setting policy, the District would continue to draw reserve balances down to minimum levels of six-month operating by the end of the planning period. 

 

Ms. Ustin reviewed the schedule and reported that the revenue requirements analysis would be going to the Board for consideration at the November 29 Board meeting and the public hearing on proposed adjustments would be held on January 3, 2007.  Adoption of rates, fees and charges would be considered at the January 12 meeting, and pending results of that meeting, changes would be come effective February 1, 2007.  The FRC adjustments would become effective on April 1, 2007. 

 

Responding to a question from President Campbell concerning the interest earnings and how they compared to last year’s assumptions and if they were close, Ms. Ustin replied, yes, that they were very consistent. 

 

President Campbell explained the process for those in the audience who might not have attended a CCWD Board meeting.  He noted that the item had been to the District’s Finance Committee and explained the Committee process.   He then asked if the Board had any questions of the presenter. 

 

Vice President acknowledged and thanked Ms. Ustin and staff for the work that they had been doing. 

 

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

 

Director Burgh commended the Finance Department’s efforts and commented that the audit was the result of all District employees doing their jobs with energy and diligence.  

 

It was the consensus of the Board to accept the assumptions for the 2007 water rate analysis. 

 

REPORTS FOR DISCUSSION

 

11.                 Committee Report(s)

a.        Public Information Committee Post-Meeting Report (10/25/06)

b.       Bay Area Water Forum Post-Meeting Report (10/30/06)

c.        Bay Area Water and Land Use Committee Post-Meeting Report (10/31/06)

d.       Operations and Engineering Committee Post-Meeting Report (11/2/06)

e.        Finance Committee Post Meeting Report (11/3/06)

f.          

President Campbell asked if there were any comments on the committee reports.  There were no comments. 

12.        Schedule Future Meeting Dates and Times

 

Mr. Bishop reminded the Board that the date for District’s Employee Holiday Luncheon would be December 14. 

 

REPORTS

 

13.        General Manager

 

Mr. Bishop commented that the Board’s action on the AIP was very significant.  He thanked Assistant General Manager of Delta Projects Greg Gartrell, Principal Engineer Samantha Salvia and Associate Engineer Rachel Martin.  He also acknowledged representatives from EDAW and members from the Carollo Engineering team for the work they had done on the AIP and working with District staff. 

 

Mr. Bishop also recognized Operations and Maintenance Managers Michael Holley Doug Young, Dave Huey, Matthew Novak, and Kent Nelson for their leadership and in performing their duties and for their productivity and creativity with providing cost savings for the District.

 

He also announced that neither the Bay Area Integrated Regional Water Management Plan (IRWMP) nor the East County IRWMP were awarded funding in Round 1 of the Proposition 50, Chapter 8 funding cycle. 

 

14.        Legal Counsel

 

Mr. Maddow acknowledged and thanked Ms. Martin, EDAW and Carollo Engineers for their assistance with the AIP.  He also thanked attorney Barbara Schussman, for her assistance on the AIP document which was adopted at the meeting.   He also gave a brief report on Proposition 218 and informed the Board of a case where an initiative was approved to roll back sewer rates that a city council had previously approved.    

 

15.               Board Members

 

Director Boatmun reported on the Habitat Conservation Plan Association (HCPA) meeting that she attended on November 8.  She also reported that the possible controversy between Concord and Pittsburg was resolved and that the City of Antioch had requested that there be a change in the Roddy Ranch designation. 

 

She also read a letter that she had received from Ms. Sandy Parr from Martinez praising District staff for their knowledge and professionalism on a District tour that she had taken on October 13.  She noted that she would be attending the ACWA Board meeting on November 16 where the future ACWA Water Bond would be discussed. 

 

Vice President Anello reported that she was also at the HCPA meeting on November 8 and noted that it was an excellent meeting.  She also reported that she did a presentation to the Martinez City Council on November 1 and a presentation to the Bay Point Municipal Advisory Council on November 14. 

 

Director Wandry commented that the EIR was done extremely well, responses were done very well and he opined that it was defensible with very few problems.  He thanked Public Information Specialist Gina Oltman for giving his presentation at the Oakley City Council on November 14 due to his being called out of town.  He reported that he and Director Boatmun gave a presentation to the Antioch City Council on November 14.  He also announced that he would be out of town November 16-20.

 

Director Burgh reported that he gave a presentation at the Martinez Rotary Club earlier in the day.  He remarked that the Manager of Castle Rock Water District was present at the meeting and he asked that he extend to the CCWD General Manager his thanks to District staff for all of the help they have given to his District. 

 

President Campbell echoed the remarks made on the EIR and thanked staff for keeping the Board informed throughout the process.  He also thanked Director Wandry for his expertise in responding to his questions regarding the EIR.  He also made the Board aware that Clayton Council Member Pete Laurence would be retiring and that he would be presenting a Director’s commendation to Council Member Laurence on November 17.   

 

ADJOURNMENT

 

At 7:30 p.m., President Campbell adjourned the meeting to an adjourned regular meeting of the Board of Directors on November 29, 2006, commencing at 6:30 p.m.

 

 

 

 

                                                                                                                                                           

                                                                                    Joseph L. Campbell, President

 

 

 

                                                           

Sharon L. Burris

District Secretary