CONTRA COSTA WATER DISTRICT

BOARD OF DIRECTORS

REGULAR MEETING

May 2, 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 noted that Director Boatmun was absent and that she had previously notified the Board.   President Campbell acknowledged and welcomed City of Clayton Mayor Bill Walcutt to the meeting. 

 

PLEDGE OF ALLEGIANCE

 

Director of Finance Brice Bledsoe 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 – May/June

            b.   Expenses – March/April

            c.   Compensation – April

 

2.         Approve the minutes of April 4, 2007.

 

3.         Approve the warrant register dated May 3, 2007.

 

4.         Authorize execution of an agreement with Modular Information Systems for technical services for Customer Billing and Information System software enhancements in an amount not to exceed $189,800. 

 

5.         Authorize sole source procurement of bypass hose and deployment equipment for the Concord Earthquake Fault Transmission Main Crossings Project from Kidde Firefighting for a cost not to exceed $255,000. 

 

President Campbell reminded that Board that Agenda Item No. 1.a. had been revised and approval of the consent calendar would include that revision.   

 

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

 

ACTION

 

6.         Amendment No. 11 to the Trust Agreement Establishing the Retirement Plan of the Contra Costa Water District

            a.   Authorize budget transfer of $1.53 million from General District Activities Purchased Water to General District Activities Taxes and Benefits; and

            b.   Adopt Resolution No. 07-11 authorizing execution of Amendment No. 11 to the Retirement Plan Trust Agreement.

 

Mr. Bishop reported that the District had met with the employee bargaining units and that they were supportive of the amendment to the Retirement Plan Trust Agreement.  The budget performance for FY07 provided an opportunity to fund the liability associated with the change in the benefit formula with no impact on the Ten-Year Financial Plan.  He also reported that the retirement trust was 94 % funded. 

 

Mr. Bishop reported that the current retirement plan was 2.25% @ 55 years of age and that the recommendation before the Board was 2.3% @ age 55.  This new formula would be effective for participants retiring on or after January 1, 2008.  The amendment was unanimously recommended by the Retirement Committee at its meeting on April 20, 2007.  He advised that any changes to the retirement trust and any liabilities associated with the changes would be funded from the current year budget. 

 

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

 

Director Wandry commented that he had received several comments from individual union members expressing their appreciation for the Board’s potential action in approving the item.

 

Director Burgh echoed Director Wandry’s comment.  He also commented that this positive action was due to the productivity of the employees. 

 

MOTION:  Wandry/Anello to a) authorize budget transfer of $1.53 million from General District Activities Purchased Water to General District Activities Taxes and Benefits; and            b) adopt Resolution No. 07-11 authorizing execution of Amendment No. 11 to the Retirement Plan Trust Agreement.  The motion carried by a unanimous voice vote. 

 

DISCUSSION AND INFORMATION

 

7.         Review and comment on the Water Supply Outlook and Conservation Communications Plan.

 

Mr. Bishop reported that Director of Planning Jerry Brown would be making a presentation and giving an overview of the District’s water supply and assets available in the event of another dry year.    

 

Mr. Brown advised that this was California’s fourth driest winter on record and that the snow pack was approximately 45 percent of normal.  He reported that the Central Valley Project (CVP) reservoir storage was relatively full.  The District had sufficient allocation, supplemental water supplies, and ongoing conservation efforts to meet demands in 2007.  The District’s message to its customers was to renew their conservation efforts and ensure efficient use of water.

 

Mr. Brown reported that the District’s current CVP allocation was at 100 percent.  He advised that water could be transferred from East Contra Costa Irrigation District (ECCID), recycled water would continue, and a conservation effort would take place to provide for demand management.  He reviewed what could take place if the dry conditions continued next year and noted the CVP allocation could be as low as 75 percent.  If needed, ECCID transfer would be increased, recycled water efforts would continue and the District would be looking at a dry-year water transfer, which was consistent with the Future Water Supply Studies.  The District would also be considering conservation, which could involve voluntary or mandatory reductions depending on supply availability. 

 

Mr. Brown reported that due to reduced runoff this year, Delta water quality would deteriorate quicker.  Los Vaqueros Reservoir would be needed to maintain delivery of high quality water to the District’s customers.  He advised that managing water use and water quality carefully would help the District conserve water at Los Vaqueros in case next year was also a dry year.   

 

A review of the fiscal impact indicated that the 2007 dry condition was not anticipated to significantly impact FY07 or FY08 revenues.  Mr. Brown advised that restoring water levels at Los Vaqueros Reservoir could impact energy costs next year by approximately $1 million, and this expenditure would be reflected in the mid-cycle budget review.  A review of the schedule indicated that the final 2007 CVP allocation amounts would be available on May 15, 2007.  The anticipated timeframe to begin Los Vaqueros blending was scheduled for July 2007 and the initial 2008 CVP allocations would be released in February 2008. 

 

President Campbell commented that the item was agendized to make the public aware to renew their conservations plans and ensure efficient use of water.  He also commented that Los Vaqueros water was used to blend with water in the Delta for better water quality and asked Mr. Brown if he concurred.  Mr. Brown concurred. 

 

President Campbell asked if there were other comments.

 

Responding to a questions from Director Wandry concerning how far Los Vaqueros Reservoir could be drawn down, Mr. Bishop replied 44,000 acre feet. 

 

Responding to a question from Vice President Anello concerning the present water level at Los Vaqueros Reservoir, Mr. Bishop answered that it was approximately 87,000 acre feet.

 

President Campbell commented on the construction, design, and efficiency of the dam at Los Vaqueros. 

 

President Campbell asked if there were any public comments.  Mayor Walcutt had a question concerning removing water from Los Vaqueros Reservoir and the $1 million expenditure.  Mr. Bishop replied that the money would be for energy costs to refill the reservoir. 

 

Mr. Bishop noted that Director of Public Affairs Patty Friesen would be making a presentation addressing the District’s related communication plan. 

 

Ms. Friesen reviewed the key messages of the plan.  She noted this was an opportunity for the District to remind its customers to renew their conservation efforts and ensure they were using water efficiently.  She reported that the District offers numerous conservation programs to help customers improve their water use efficiency.

 

Ms. Friesen reviewed the communication tools.  She advised that pending Board approval of the press release attached to the Board docket item, that it would be released announcing the District’s messages.  She reported that May 7-11 was the American Water Works Association (AWWA) National Drinking Water Week.  The District was planning to feature an article in the Contra Costa Times that would celebrate drinking water and also ask customers to conserve.  The District’s Water Conservation Department would be developing kiosk displays for the lobby at District Center and other District locations.  She also noted that the website would display constant reminders and weekly tips on water conservation. 

 

The On Tap customer newsletter, messages on the backs of water bills, a bill insert, and the Conduit employee newsletter were examples of publication used to reinforce and communicate the District’s conservation messages.

 

Ms. Friesen reported that internal employee communications were also important.  She advised District employees needed to be informed on the various programs in place and communicate where information was available.  She noted that the District’s retailers should also be reminding customers to renew conservation efforts.  She advised that the District’s communication plan would be introduced into the Speakers’ Bureau materials, which offers the Board an opportunity to address civic groups and service clubs.  Public outreach tours were also viewed as an excellent opportunity to inform the public on the conservation messages. 

 

Ms. Friesen reviewed the related talking points.  The message included that 2007 was a dry year and that the effects of low precipitation varied by region due to climate conditions and the size of the reserves.  The District has adequate water supplies for 2007 because its’ main water supply comes from the federal contract with CVP.  Other water agencies’ supplies differ from CCWD’s because their watersheds are smaller and they have less storage capacity.  She noted that, if low precipitation continued, the CVP allocation could be reduced and this would impact the District’s water supply.  She advised that this is a prime opportunity to ask customers to conserve this year in the event that next year was a dry year. 

 

Ms. Friesen reviewed the District’s conservation programs available, which included the high-efficiency toilet incentive program, the high-efficiency clothes washer incentive program, smart sprinkler timer rebate program, large landscape water budget program, free high-efficiency showerheads and faucet aerators, free water conservation literature and brochures, and the free Water-Wise Gardening CD ROMs. 

 

President Campbell asked if there were any comments or questions.    

 

Mayor Walcutt asked if the conservation information could be used in his column for the Clayton Pioneer Newspaper for month of June.  President Campbell responded that Ms. Friesen would assist him with this matter.  Mayor Walcutt suggested that a Contra Costa Water District link be added to the City of Clayton website.  President Campbell concurred.    

 

Director Wandry commented that the press release should also be sent to the local, free newspapers in East County.  He advised that they had a very large reader base.  Ms. Friesen confirmed that the newspapers were on the media list.   

 

Vice President Anello commented positively on the press release. 

 

Director Burgh commented that the ACWA Communications Committee had discussed the amount of energy used statewide for water utilities.  He also commented that by conserving water, energy costs were also reduced. 

 

President Campbell commented on the drought in 1976.  He pointed out that even with the increase in population that the District was just now returning to the same level of delivery as in 1976.  He commented that conservation efforts were effective.  He thanked staff for their presentations and the Board for being very studious. He also thanked Mayor Walcutt for attending the meeting to hear the presentation. 

 

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

REPORTS FOR DISCUSSION

 

8.         Committee Report(s)

            a.   Retirement Committee Post-Meeting Report (4/20/07)

            b.   Bay Area Water Forum Post-Meeting Report (4/23/07)

 

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

 

9.         Schedule Future Meeting Dates and Times

 

Mr. Bishop reminded the Board that the date for the staff hosted barbeque had been changed to

May 16. 

 

Director Wandry advised that he would be attending Contra Costa County Sheriff Rupf’s Annual Inspection on May 18, in Richmond.   

 

REPORTS

 

10.        General Manager

 

Mr. Bishop commented on the Catch A Special Thrill (CAST) Program held on April 28 at Los Vaqueros Reservoir.  He advised that the program was a success and would be repeated annually. 

 

11.        Legal Counsel

 

Mr. Maddow did not have a report.

 

12.        Board Members

 

Vice President Anello did not have a report.

 

Director Wandry did not have a report.

Director Burgh reported that he had participated in the “Clayton Cleans Up” event on Saturday, April 28.  He advised that it was a very productive day and commented that the District also had a booth at the event related to the District’s water conservation incentive programs. 

CLOSED SESSION

 

13.        Conference with Labor Negotiator as allowed under Government Code 54957.6; Agency Negotiator:  Walter J. Bishop; Employee Organization:  Local 39. 

 

At 7:08 p.m., President Campbell announced that the Board would move into closed session.  The matter concerned labor negotiations and the additional attendee would be the Human Resources and Risk Manager Elia Bamberger. 

 

RECONVENE FROM CLOSED SESSION

 

14.        Report on closed session. 

 

At 7:21 p.m., President Campbell reconvened the meeting and announced that the Board did not take any action on the matter before it. 

 

ADJOURNMENT

 

At 7:22 p.m., President Campbell adjourned the meeting to the next regular meeting of the Board of Directors scheduled for May 16, 2007, at 6:30 p.m.

 

 

 

 

                                                                                                                                                        

                                                                                                Joseph L. Campbell, President

 

 

ATTEST:

 

                                               

Sharon L. Burris

District Secretary