CONTRA COSTA WATER DISTRICT

BOARD OF DIRECTORS

REGULAR MEETING

January 3, 2007

 

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

 

Assistant General Manager of Planning/Delta Projects Dr. Greg Gartrell led the Pledge of Allegiance. 

 

ADOPTION OF AGENDA

 

Mr. Bishop reported that there were revisions to Agenda Item No. 2.a. – Future Services.  He also advised that information had been received since the agenda was posted concerning the District’s defense of the lawsuit challenging the adequacy of the Environmental Impact Report (EIR) and project approval for the Alternative Intake Project (AIP).  He identified the name of the lawsuit as the San Luis & Delta-Mendota Authority and Westlands Water District vs. Contra Costa Water District (CCWD).  He advised that District Counsel recommended that the Board take immediate action and agendize this matter for Board consideration at this meeting. 

 

Mr. Bishop advised that under Government Code 54954.2(b) four affirmative votes were required from the Board to determine that immediate action was necessary to add an item to the agenda.  He recommended that a motion be made to add the item to the agenda as Agenda Item No. 14.  He stated that the title of the item would be Budget Transfer and Contracting Authority for Legal and Professional Services in Support of Litigation Defense.

 

MOTION:  Boatmun/ Burgh to add an emergency item as Agenda Item No. 14 – Budget Transfer and Contracting Authority for Legal and Professional Services in Support of Litigation Defense.  The motion carried by a unanimous voice vote.  

 

PUBLIC COMMENT

 

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

 

PUBLIC HEARING

 

1.                   Conduct a public hearing to provide information and receive comments on proposed water rate, fee and charge adjustments for 2007. 

 

President Campbell explained the public hearing process.

 

Mr. Bishop noted that Director of Finance Karen Ustin would be making a presentation on the proposed water rate, fee and charge adjustments for 2007.  He noted that the revenue increase was proposed at three percent.  He reminded the Board that they had previously reviewed the revenue analysis at the Board meeting on November 29, 2006 and the assumptions on November 15, 2006. 

 

Ms. Ustin reported that the District was in full compliance with Proposition 218.  Approximately 60,000 notices were sent to ratepayers on November 14, 2006 stating that the Board would be considering increases of up to three percent.  One written protest was received and acknowledged with the customer that the protest would be considered as part of the record at this Board meeting.  One anonymous protest was received after the agenda packet was distributed.  There was no identifying information on the protest; therefore, it was considered invalid. 

 

Ms. Ustin reviewed the untreated water billing components for municipal and industrial services, and customer impacts for untreated water and the treated water billing components.  She reported that the proposed increase for untreated water would be three percent.  In the untreated water municipalities, the proposed increase for a single-family customer using approximately 320 gallons per day (gpd) would be approximately $.42 per month.   She noted that the impact to treated water single family residential customers increase would vary as to the amount of water used.  Customers taking less than 320 gpd would have less than a three percent increase and customers using more than 320 gpd would see greater percentage increases. 

 

Ms. Ustin advised that in addition to the revenue increases that Facility Reserve Charge (FRC) increases were also being proposed.  Not all components of the FRC’s were subject to inflation and she reviewed the proposed increases.  She advised that a $.25 per day increase in the daily fishing fees at Los Vaqueros was also being proposed.  This increase would cover the project cost during the upcoming year for the stocking of fish.  She indicated that these fees were in the range of other local reservoir charges. 

 

Mr. Bishop commented that the Los Vaqueros daily fishing fees were last adjusted in 2001.

 

Director Boatmun asked if any other agencies were charging less than the District.  Mr. Bishop responded that some were charging less, while others charged more.  Discussion took place on the fees that other local agencies were charging.    

 

Ms. Ustin reported that a structure change to the fee for annexation of land to the District and/or inclusions of land to the Central Valley Project (CVP) was also recommended.  She indicated that the District was proposing a cost of services for these types activities due to expanded regulations with the Department of Water Resources and other agencies where the time to complete an annexation varies widely.  She advised that looking at each on an individual basis and charging for the actual cost was the most beneficial scenario.  Ms. Ustin noted that this was consistent with the Districts’s approach determining fees for engineering services. 

 

Mr. Bishop explained the history of how the rates were established and why it was necessary to raise the fees at this time. 

 

Ms. Ustin reviewed the schedule and noted that based on input from the Board and public that the consideration of proposed changes would occur at the meeting on January 17.  The effective date for any new rates and fees the Board approved would be February 1, with the exception of FRC’s, which would become effective on April 1.    

 

Director Boatmun asked if the large volume customers also received notification on the proposed adjustments.  Ms. Ustin replied that they had received notification.  She also noted that the cities and developers involved had received a letter from the District notifying them that the Board would be considering the increases.  She explained that, when the Board had taken action on the proposed increases, a follow-up letter would also be sent advising them of the Board’s action.    

 

President Campbell reported that he was approached by a person from one of the cities he represents and that they questioned the three percent rate increase.  He explained that it was not a three percent rate increase it was a three percent revenue proposal.  He indicated that this was the only inquiry he had received. 

 

President Campbell asked if the Board had any questions for the presenter. 

 

At 6:46 p.m. President Campbell opened the public hearing and asked if anyone would like to speak to the item.  There were no comments.  President Campbell closed the public hearing at 6:47 p.m.

 

Director Wandry asked if it would be prudent to leave the public hearing open to when the Board receives the item on January 17 so comments could be received at that time.  Mr. Maddow advised that comments could still be received at that time even though the public hearing had been closed.  He advised that the public hearing should be closed at this time.  He suggested that an announcement be made at the January 17 meeting stating that the public hearing had been held but that the Board would still entertain comments from the floor.  

 

President Campbell noted that hearing no comments from the Board, that staff would bring the item back for consideration at the meeting of January 17, and that the Board by their silence had not objected to hearing comments if comments were to come in. 

CONSENT

 

2.         Approve Directors’ Services/Business and Travel Expenses

            a.   Future Services – January

            b.   Expenses – December

            c.   Compensation – December

 

3.         Approve the minutes of November 29, 2006.

                                         

4.         Approve the warrant register dated January 4, 2007.

 

5.                   Confirm the President’s recommended appointments for Board committees, liaison positions, and chairpersons. 

 

6.                   Approve the addition of R&W Concrete as a subcontractor to Monterey Mechanical Company for the concrete work on the Contra Costa Water District/City of Brentwood Water Treatment Plant Project.   

 

President Campbell reminded the Board that Item No. 2.a. had been revised. 

 

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

 

REPORTS FOR DISCUSSION

 

7.         Committee Report(s)

            a.   Board of Supervisors’– Transportation, Water & Infrastructure Committee Post-Meeting Report (12/11/06)

            b.   Bay Area Water Forum Post-Meeting Report (12/18/06)

 

President Campbell asked for comments on the committee reports.  There were no comments. 

           

8.         Schedule Future Meeting Dates and Times

 

Mr. Bishop noted that the Concord Mayor’s Breakfast would be held on January 24 and asked the Board to confirm their attendance with the District Secretary.  He reminded the Board of the Study Session on January 25 and noted that both of the District’s lobbyists would be present. He also commented that the Contra Costa USA 2007 event would be held on January 25 and encouraged the Boardmembers to attend.      

 

President Campbell commented that the keynote speaker would be Dan Rather and the luncheon speaker would be Lt. Governor John Garamendi.  He also noted that he would be attending both the Mayor’s Breakfast and the Contra Costa USA 2007 event.  Director Boatmun indicated that she would be attending these events.  Vice President Anello added that she would also be attending the Contra Costa USA 2007 event. 

 

Director Boatmun reported that she would also be attending the Contra Costa County Mayors’ Conference on January 14. 

 

REPORTS

 

9.                   General Manager

 

Mr. Bishop reported that the District had received the Comprehensive Annual Financial Report (CAFR) Award from the Government Finance Officers Association and commented that it was a reflection on the excellent stewardship from the Finance Department.  He also announced that Director of Finance Karen Ustin would be retiring from the District on January 26.  He reviewed Ms. Ustin’s career as it related to the District and noted that she would be missed.  

 

10.        Legal Counsel

 

Mr. Maddow did not have a report.

 

11.        Board Members

 

Director Boatmun referenced an exhibit at the ACWA Conference with funding from the Department of Water Resources for disabled children to fish at reservoirs.  She indicated that she would like to receive more information on the program and the possibility of implementing it at Los Vaqueros Reservoir. 

 

President Campbell indicated that he was aware of the program and noted that it was very volunteer-driven.  He opined that the biggest challenge would be transporting the children to Los Vaqueros Reservoir because it was isolated.  He agreed that it was a good program.    

 

Director Boatmun also reported that she would not be able to attend an ACWA Board Committee meeting on January 25 concerning the proposed 2008 Water Bond.  She indicated that she would like to attend future meetings to ensure that language for all areas of the state was included in the Bond.  Discussion took place on the meetings and Director Boatmun clarified that it was the ACWA Board that would be meeting and not the Drafting Committee.  She indicated that all ACWA members could attend the meetings.  Mr. Bishop commented that he would make Boardmembers aware of when the meetings were being held and encouraged them to attend.  Director Boatmun announced that she would be on vacation February 5-12 and that she would not be present at the February 7 Board meeting.

 

Vice President Anello reported that she would be attending the Contra Costa USA 2007 event and the Board Study Session. 

 

Director Wandry did not have a report. 

 

Director Burgh did not have a report.

 

President Campbell noted that the Contra Costa Council (Council) Board met on December 15 and took a position on the Contra Costa County Board of Supervisors’ salary increase.  He reported that he did not vote on the item.  He also referenced a debate that took place at the meeting concerning whether the Council would be a signatory, along with the County and various cities, on a letter urging approval of the Habitat Conservation Plan or if they would send their own letter.  The Council voted to endorse the coalition letter.   He also referenced an article in the January 5, 2007 Council newsletter where the District was credited for sponsoring one of the Council’s 2006 Board meetings.    

 

CLOSED SESSION

 

12.               Conference with counsel on existing litigation, as allowed under Government Code 54956.9(a):  San Luis & Delta-Mendota Water Authority and Westlands Water District v. CCWD. 

 

At 7:03 p.m., President Campbell announced that the Board would move into closed session.  The matter on the agenda concerned litigation which did not require the announcement of additional attendees. 

 

President Campbell also reported that following the closed session there would be an emergency item, which was added by a unanimous vote of the Board at the beginning of the meeting.  

 

RECONVENE FROM CLOSED SESSION

 

13.               Report on closed session. 

 

At 7:19 p.m., President Campbell reconvened the meeting and reported that the Board did not take any action on the matter before it. 

 

14.               Budget Transfer and Contracting Authority for Legal and Professional Services in Support of Litigation Defense.

a.   Authorize a $500,000 budget transfer from the FY07 General Manager’s contingency budgets (with $275,000 from operating contingency and $225,000 from the Board of Directors budget) to the General District Activities Legal Services budget; and

b.   Authorize the General Manager to enter into contracts in amounts up to $100,000 for legal and/or professional services necessary in support of litigation defense

 

Mr. Bishop reviewed the recommended action. 

 

President Campbell asked anyone would like to speak to the item.  There were no comments. 

 

MOTION:  Wandry/Boatmun to a) authorize a $500,000 budget transfer from the FY07 General Manager’s contingency budgets (with $275,000 from operating contingency and $225,000 from the Board of Directors budget) to the General District Activities Legal Services budget; and b) authorize the General Manager to enter into contracts in amounts up to $100,000 for legal and/or professional services necessary in support of litigation defense.  The motion carried by a unanimous voice vote. 

 

 ADJOURNMENT

 

At 7:20 p.m., President Campbell adjourned the meeting to the next regular meeting of the Board of Director scheduled for January 17, 2007, at 6:30 p.m.

 

 

 

 

                                                                                                                                                        

                                                                                                Joseph L. Campbell, President

 

 

ATTEST:

 

 

                                               

Sharon L. Burris

District Secretary