CONTRA COSTA WATER
DISTRICT
BOARD OF DIRECTORS
REGULAR MEETING
February 7, 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
John A. Burgh
Karl
L. Wandry
Directors Absent: Bette
Boatmun
General Manager: Walter
J. Bishop
Legal
Counsel: Robert
B. Maddow
District
Secretary: Sharon
L. Burris
President
Campbell announced that Director Boatmun was absent from the meeting and that
she had previously notified the Board.
PLEDGE OF ALLEGIANCE
Public Affairs Director Patty Friesen led the Pledge of
Allegiance.
ADOPTION OF AGENDA
Mr. Bishop reported that there were no
changes to the agenda. He advised that
there was memo before the Board revising Agenda Item No. 1.a. – Future Services – February and Agenda
Item No. 1.b. – Expenses – January.
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 – February
b. Expenses
– January
c. Compensation
– January
2. Approve the warrant register dated February 8, 2007.
3.
Authorize execution of an amendment in the amount of
$45,000 to the contract with Wiley, Price & Radulovich for employment and
labor law special counsel services for a revised total amount not to exceed
$145,000.
4.
Authorize execution of a two-year contract with Delta Wireless
to design, furnish, install, and maintain video system equipment for the
Security Enhancement Project for an amount not to exceed $437,800.
MOTION: Anello/Burgh to
approve the consent calendar. The motion
carried by a unanimous voice vote.
ACTION
5.
Adopt Resolution No. 07-03 authorizing execution of a
seventh amendment to the agreement with the California Department of Water
Resources for the Los Vaqueros Reservoir Expansion Project for an additional
amount not to exceed $800,000 for an agreement total not to exceed
$11,900,000.
Mr. Bishop reported that this was the seventh amendment to
the agreement with the California Department of Water Resources (DWR) for the
Los Vaqueros Reservoir Expansion Project.
Assistant General Manager of Delta Projects/Planning Dr. Greg Gartrell
and Special Projects Manager Marguerite Naillon had continued to be successful
in obtaining funding from the state for this project. This amendment would bring the combined total
from DWR to over $11 million for the project.
President Campbell asked the Boardmembers if there were any
questions. There were none. He then asked if there were any public
comments on the item. There were none.
MOTION: Wandry/Anello to
adopt Resolution No. 07-03 authorizing execution of a seventh amendment to the
agreement with the California Department of Water Resources for the Los
Vaqueros Reservoir Expansion Project for an additional amount not to exceed
$800,000 for an agreement total not to exceed $11,900,000.
6. Legislative
Affairs Report – February 2007
Review update on legislative issues and adopt District
positions for the following: State
Legislation AB 5 (Wolk) – Flood Protection:
Local: Central Valley: Plans – Watch; AB 26 (Nakanishi) – Flood
Control: Natural Community Conservation Plan – Favor; SB 5 (Machado) – Flood Management – Watch; SB 34 (Torlakson) – User Fees and Assessments:
Sacramento-San Joaquin Delta Flood Control – Watch; and SB 59 (Cogdill) – Reliable Water Supply Bond Act of 2008
– Watch.
Mr. Bishop advised that Director of Public Affairs Patty
Friesen would be presenting an update on the legislation. He also reported that he would be providing an
update on the President’s budget.
Ms. Friesen advised that there were several bills for the
Board’s consideration. She reported on
the following bills:
AB 5 (Wolk) –
Flood Protection: Local: Central Valley: Plans – Ms. Friesen advised that this
bill provided for state funds to be given to local agencies that have adopted a
local flood protection plan. The bill
would prohibit local governments in the Central Valley
from approving new developments within high-risk flood prone areas. The bill needed clarification to define a
local agency, which agency would be responsible for creating a plan and the
source of funding. It provided a
mechanism for a direct link between flood protection and land use planning to
address important flood control and planning issues. The District’s recommended position was to Watch this bill.
AB 26 (Nakanishi)
– Flood Control: natural Community Conservation Plan – Ms. Friesen
reported that the bill required preparation of a Natural Community Conservation
Plan. The plan would provide
comprehensive management and conservation of multiple wildlife species. Primarily, the bill would allow for routine
maintenance of flood control projects including levees on a system-wide,
long-term basis. This would eliminate delays in permitting for
routine maintenance activities which provide operational efficiency and
flood-related benefits. The recommended
District position for this bill was Favor.
SB 5 (Machado) –
Flood Management – The bill develops a comprehensive, integrated flood
policy addressing all aspects of flood management. It proposes changes in land use planning and
specifies that the state needs a “State Plan of Flood Control.” Ms. Friesen advised that the language needed
clarification on what prioritization mechanism to use for allocating flood
funding and minimum standards for urban areas.
The bill holds the state responsible to pay for 100 percent of the
non-federal capital costs to bring the facilities up to design standards and
system-wide structural and non-structural improvements. The
District recommended a Watch position
for this bill.
SB 34 (Torlakson) – User Fees and Assessments: Sacramento-San
Joaquin Delta Flood Control – Ms. Friesen reported that Senator Torlakson
was proposing a “beneficiary pays system” to collect user fees and assessments
for levee maintenance and flood control in the Delta. She advised that the language for the bill
was very limited. The bill provided for
a significant portion of the state bond funds approved in Proposition 1E to be
prioritized through a “beneficiary pays system.” She reported that a meeting with stakeholders
was held and that the District had participated in the meeting. The District’s position was that any
assessment assigned to Delta beneficiaries needed to fair and equitable and in
proportion to the benefits received. The
bill attempts to address a need for an ongoing reliable funding mechanism for
levee maintenance and flood control. The
District’s recommended position was to Watch
the bill.
President Campbell commented on a conversation that he had
with Senator Torlakson before the bill was introduced. He also commented on a letter that was sent
to Senator Torlakson thanking him for his support of the District.
SB 59 (Cogdill) –
Reliable Water Supply Bond Act of 2008 – Ms. Friesen reported that this was the
Governor’s bond package for surface storage projects specifically authorizing
the sale of $3.95 billion in general obligation bonds. She reported on the categories of funding and
noted that it allows for $2 billion funding for two surface water storage
projects: Sites and Temperance Flat, unless
those two storage facilities were deemed infeasible. She advised that there was $1 billion for
Delta Sustainability, which was a category where District projects could be
eligible for funding. The District’s recommended
position was to Watch this
legislation.
President Campbell asked if there were questions or
comments of the presenter. There were
none. President Campbell expressed his
appreciation to Ms. Friesen for the attachment with the docket explaining the legislative
positions.
President Campbell asked if there were any public
comments. There were no public
comments.
Mr. Bishop reported on the Governor’s budget as it related to
District projects. He also commented on
the federal government and the Environmental Water Account.
MOTION: Burgh/Anello adopt District positions for
the following: State Legislation AB 5
(Wolk) – Flood Protection: Local: Central Valley: Plans – Watch; AB 26 (Nakanishi) – Flood Control: Natural Community
Conservation Plan – Favor; SB 5
(Machado) – Flood Management – Watch;
SB 34 (Torlakson) – User Fees and Assessments: Sacramento-San Joaquin Delta
Flood Control – Watch; and SB 59
(Cogdill) – Reliable Water Supply Bond Act of 2008 – Watch.
DISCUSSION &
INFORMATION
7. Review and comment on the Draft
Ten-Year Capital Improvement Program and Financial Plan for Fiscal Years
2008-2017.
Mr. Bishop advised that Assistant General Manager of
Engineering Tom Linville would present the 2008-2017 Draft Ten-Year Capital
Improvement Program (CIP), and the Assistant General Manager of Administration
Kurt Ladensack would be presenting the Financial Plan.
Mr. Bishop reported that the 2008-2017 CIP differs from
previous CIPs due to the dollar amount, which was now $500 million. The amount being financed by the District by
rates had slightly decreased. He
discussed the possibility of the District moving to membrane technology for the
water treatment plants and advised that this was listed as a Priority 3 project. The rate analysis in this plan was consistent
with what the Board adopted at the January 17 Board meeting. The District had continued its commitment to
cost-reduction in operations and maintenance.
Mr. Linville’s presentation included the Ten-year CIP and
Financial Plan, the two-year operating budget, and the rate analysis, with ten
year projections. He advised that the
two-year capital budget would be reviewed in June 2007.
Mr. Linville reviewed and identified the key messages for
the 2008-2017 CIP. The Financial Plan
addressed the uncertainties of assumed state and federal funding for the
Alternative Intake Project (AIP). The
total for this CIP was $503.4 million and was the District’s largest primarily
due to an increase in Priority 3 projects.
He advised that the draft CIP resulted in a Financial Plan that was
consistent with the Board’s Rate and Reserve Policies.
Mr. Linville noted that the funded level for the 2008-2017 CIP
was approximately $6.6 million lower than the 2007 CIP funded level. The total CIP costs increased by $21.6
million, which was primarily driven by increases in Priority Level 3
projects. He advised that the largest
project would be the Membrane Filtration Project, which would be considered if
Delta water quality should worsen.
Mr. Linville reviewed Priority Level 1 and 2 cost
comparisons by funding source. He
advised that the increase in debt-funded CCWD was a result of the final year of
the untreated water pipeline moving into the CIP. He reported that there was a decrease in Funded
by Others totaling $9.2 million and a decrease in revenue-funded projects of
approximately $46.7 million due to progress.
Mr. Linville identified the ten programs in the CIP and
advised that there were 59 projects within the ten programs. He identified key projects in each of the
programs. He reported that one of the
projects identified in the Administrative Support and Maintenance Facilities Project
was a new emergency generator for the Bisso operations and maintenance
buildings, which would provide emergency power in the event of a major
disaster.
Mr. Bishop advised that this project would enable the
District campus to be self-sustaining with backup generation for a period of
seven days to two weeks.
Mr. Linville reported that Delta Projects (totaling $96.7
million) contained the largest project, which was the AIP. He identified the state and federal assumed
funding for the project and indicated that the District funding had increased from
$64 million to $70 million. Another
project within this program was identified as the Los Vaqueros (LV) Reservoir Expansion
Project. He reported that the EIR and
EIS Feasibility Studies should be completed for this project within the next
two years.
Mr. Linville reviewed the Equipment and Other Capital
Purchases Program and identified four significant projects for a total of $15.2
million. Projects identified within the
program included replacement/upgrade of the District’s computer systems; fleet vehicles
and heavy equipment, and the GIS Implementation, which would improve the
ability to coordinate data on a geographical basis.
The Expansion of Services Program total cost was $82.1
million. Significant projects included
the CCWD/Brentwood Water Treatment Plant, at a cost of approximately $39.5
million; the CCWD/Brentwood Water Treatment Plant Expansion, at a cost of $41.1
million; and the Intertie at East Bay Municipal Utility District (EBMUD) Mokelumne
Aqueduct for approximately $1.1 million.
Mr. Linville reviewed the Future Water Supplies Program and
advised that there was $3.7 million for this program. Projects included the Future Water Supply
Study Update and a Future Water Supplies placeholder. A review of the LV Program identified three significant
projects: the LV Watershed Improvement Project
at $2.2 million; the land acquisition project at $1.4 million; and the LV
Recreation Facilities and Equipment Project at $1.2 million.
The Treated Water Distribution and Storage Facilities Program
included six projects for a total of $66.7 million. He identified the components as $19 million
for the Pipeline Renewal/Replacement Project, $13.1 million for the
distribution facilities – Applicant Projects, $15.1 million for the Treated
Water Facilities Improvement Program, $6.8 million for the Treated Water
Reservoir Rehabilitation Project, and $2.7 million for the Midhill II Reservoir
project. He also identified the Country
Club Pump Station Expansion Project as a new project and advised that it would
be approximately $1 million.
Mr. Linville reviewed the Untreated Water Supply and
Transport Program and advised that the cost of the program was $126.7
million. The largest project within the
program was the $69 million Canal Levee Elimination and Flood Mitigation
Project (Canal Replacement Project). He reported
that the first phase was funded at $7.5 million and that the remainder of the
project would be built in phases as developer and grant funding became
available. Other projects within the program
were the Untreated Water Pipeline Project, which was estimated at $18.7
million. The Untreated Water Facilities
Improvement Program was noted at $18.5 million.
The new project within the program was identified as the Mallard Slough
Channel Rehabilitation Placeholder, with an estimated cost of $1.7
million.
Mr. Linville advised that the Water Demand Reduction Program
had a total cost of approximately $7 million and the only project within the
program was the Water Conservation Incentives.
The program would be funded through rates and grants.
Mr. Linville advised that the Water Treatment Facilities
Improvements Project had a total cost of $96 million. A significant project was the Bollman Water
Treatment Plant (WTP) Improvements with $13.7 million in Priority 2 and $4.8
million in Priority 3. The District would fund approximately one-half of the Randall-Bold
WTP Improvements Project and the other portion would be funded by the City of
Antioch and the City of Brentwood. This
project has $3.8 million in Priority 2 and $4.4 million in Priority 3. The Brentwood WTP Improvements Project ($1.7
million in Priority 2) would be funded by the City of Brentwood. He advised that there would also be a
Membrane Filtration placeholder project at Priority 3 for $62 million.
Mr. Linville advised that based on the adopted FY08 budget
that the operating costs would be $64.5 million. He explained how the costs were estimated and
noted that the FY08 operating budget was $1.2 million less than assumed last
year. The annual operating cost impact
in FY19 was $2.9 million. He reported
that the projects that would significantly impact the District were the
Brentwood Water Treatment Plant, the Alternative Intake Project, and the East Bay
Municipal Utility District Intertie Project.
Responding to a question from Director Wandry concerning
the Brentwood WTP and if the staff would be City of Brentwood employees or
District employees, Mr. Linville advised that they would be District
employees. Mr. Wandry asked if the
District would be reimbursed by the City of Brentwood for applicable costs including
benefits. Mr. Linville responded that this
was correct.
President Campbell commented that some of the projects had
been presented at the Operations and Engineering Committee. He
commended Mr. Linville and staff for a job well done.
Mr. Linville introduced Assistant General Manager of
Administration Kurt Ladensack who presented the Ten-Year Financial Plan.
Mr. Ladensack began his presentation by advising that the
plan would address the funding requirements for the full ten-year plan period,
including Level 1 and 2 capital projects, the operating costs, debt service,
including revenues from all sources and projects rates over the ten-year
period.
Mr. Ladensack reported that the key changes in the
financial plan were that the plan addressed the uncertainties surrounding the
time and availability of assumed state and federal funding for the AIP. He also stated that the Central Valley
Project (CVP) costs were $5 per acre-foot lower than estimated in the previous
CIP, which would equate to approximately $11 million in savings over the ten-year
period.
Mr. Ladensack reviewed the projected 2008-2017 CIP rate
increases and advised that they were consistent with the 2007 rate
analysis. He reported on the reserve
drawdowns and advised that the reserves would be drawn down to six months
operating levels for the treated and untreated water over ten years. The ten-year fundable expenditures in the CIP
totaled $1.6 billion. The revenues would
fund $1.4 billion and the reserve use was estimated at $78 million. The plan also included funding from outside
sources for $212 million over the ten-year period.
Mr. Ladensack acknowledged and introduced Principal Planner
Fran Garland, Rate and Financial Analyst Wayne Niehus, Senior Engineer Jeff
Quimby, and Project Controls Manager Lars Sandberg. He indicated that they had contributed to the
preparation of the CIP and Ten-Year Financial Plan.
Mr. Bishop commented positively on the diversification of
the District’s finances. President
Campbell and Vice President Anello commented on the District’s financial
history and on how the Ten-Year Financial Plan had improved through the years.
President Campbell thanked Mr. Ladensack for acknowledging
the staff members who had help developed the documents, and he also thanked
them.
Director Burgh also commented positively on the documents
and commended all staff involved in preparing the CIP and the Ten-Year
Financial Plan.
Director Wandry made positive comments on the CIP and
Ten-Year Financial Plan and commended staff for their hard work.
Vice President Anello commented positively and thanked staff
involved in developing the CIP and Ten-Year Financial Plan.
President Campbell asked for public comments. There were no public comments.
President Campbell queried the Board on whether to bring
the document back to the Board meeting of February 21 for consideration. It was the consensus of the Board to bring
the item back to the February 21 meeting for consideration of adoption.
REPORTS FOR DISCUSSION
8. Committee
Report(s)
a. Bay Area Water and Land Use Committee
Post-Meeting Report (1/16/07)
b. Bay Area Water Forum Post-Meeting Report (1/22/07)
President
Campbell asked if there were any comments on the committee reports. There were no comments.
9. Schedule
Future Meeting Dates and Times
There were no
future meeting dates and times to schedule.
REPORTS
10. General
Manager
Mr. Bishop reported that he would be in Washington, D.C. February
15 and 16, and that during that time Assistant General Manager of Engineering
Tom Linville would be Acting General Manager.
11. Legal
Counsel
Mr. Maddow did not have a report.
12. Board Members
Director
Burgh acknowledged President Campbell and Mr. Bishop for their response to
Senator Perata’s recent news article concerning storage and the Los Vaqueros
Reservoir. He reported that he would not
be attending the WateReuse Conference in March due to a scheduling conflict but
that he would like to attend a different WateReuse Conference in September. He advised that he would not be present at
the June 20 Board meeting due to being on vacation.
Director
Wandry reported positively on the Delta Discovery Sponsors Voyage that he took
on the RV Brownlee on January 20. He
commented that it was interesting, informative and he highly recommended taking
it.
President
Campbell commented positively on the recent tour he took of the EBMUD Intertie
Project and thanked Director of Construction Pete Schoemann for the tour. He also reported that he attended the Walnut
Creek State of the City address on February 6 and the Concord State of the City
address on January 24.
CLOSED
SESSION
13. Conference with counsel
on existing litigation, as allowed under Government Code 54956.9(a): San Luis & Delta-Mendota Water Authority
v. Contra Costa Water District.
At 7:30 p.m., President Campbell announced
that the Board would move into closed session to discuss an existing litigation
matter and that it did not require the announcement of additional attendees.
RECONVENE
FROM CLOSED SESSION
14. Report on closed session.
At 7:50 p.m., President Campbell resumed the
meeting and announced that the Board did not take any action on the matter
before it.
ADJOURNMENT
At 7:51 p.m., President Campbell adjourned the
meeting to the next regular meeting of the Board of Director scheduled for February 21, 2007,
at 6:30 p.m.
Joseph
L. Campbell, President
ATTEST:
Sharon L. Burris
District Secretary
