CONTRA COSTA WATER DISTRICT

BOARD OF DIRECTORS

REGULAR MEETING

June 6, 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

 

Water Operations Manager Dave Huey led the Pledge of Allegiance. 

 

ADOPTION OF AGENDA

 

Mr. Bishop reported that since the time that the agenda for the meeting was posted, information was received regarding a matter in which the District was facing significant exposure to litigation.  He also reported that the District’s legal counsel believed that the new information required the Board to take immediate action.  He recommended that a conference with counsel in closed session take place and that it would be permitted under Government Code Section 54956.9(b).  He also recommended that the closed session take place prior to public comments and recommended that the item become Agenda Item No. 18.b.

 

President Campbell advised that four votes were needed for the Board to determine that immediate action was necessary and to add the matter to the agenda.  He reiterated that if the motion passed, the new item would be Agenda Item No. 18.b.

 

MOTION:  Wandry/Anello to add Agenda Item No. 18.b to the agenda.  The motion carried by a unanimous voice vote.

CLOSED SESSION

 

18.b.     Conference with Legal Counsel - Anticipated Litigation as allowed under Government Code 54956.9(b) 

 

At 6:35 p.m., President Campbell announced that the Board would move into closed session.  The matter concerned litigation and did not require the announcement of additional attendees. 

 

RECONVENE FROM CLOSED SESSION

 

At 6:57 p.m., President Campbell reconvened the meeting and announced that the Board did not take any action on the matter before it.

 

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 – June

            b.   Expenses – April/May

            c.   Compensation – May

 

2.         Approve the minutes of May 2, 2007.

 

3.         Approve the warrant register dated June 7, 2007.

 

4.         Authorize execution of a new Memorandum of Understanding with the International Union of Operating Engineers Stationary Engineers, Local 39 (Clerical/Maintenance Representation Unit) for the term of July 1, 2007 through June 30, 2012 with a salary adjustment of 3.1% effective July 1, 2007.

 

5.         Approve the substitution of JMB Construction, Inc. in place of the listed subcontractor, Antioch Paving Company, for the paving and slurry seal work on the South Pleasant Hill Main Replacement Project. 

 

6.         Authorize execution of a contract with ARCOM to provide radios and training in an amount not to exceed $200,000. 

 

7.         Authorize execution of a contract with O.C. Jones & Sons, Inc. for the construction of the FY08 Canal Roads and Fencing Project in the amount of $551,450, with a 10% change order authority of $55,145, for a total amount not to exceed $606,595.

 

8.         Authorize execution of an agreement with Bold, Polisner, Maddow, Nelson & Judson for FY08 general and project-related legal services not to exceed $905,000. 

 

Director Wandry congratulated all parties involved with the Local 39 negotiations. 

 

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

 

ACTION

 

9.         Amendment to Code of Regulations – Chapter 3.08, Conflict of Interest

            a.   Conduct a public hearing;

            b.   Consider public comments received at public hearing; and

            c.   Adopt Resolution No. 07-13 Amending the Code of Regulations – Chapter 3.08, Conflict of Interest Code.

 

Mr. Bishop advised that the Executive Management Analyst Desiree Castello would be giving a presentation. 

 

Ms. Castello reported that the Political Reform Act required every multi-county agency to periodically review the Conflict of Interest Code (COI) and confirm if an amendment was necessary.  The Board last amended Chapter 3.08 of the Code of Regulations addressing Conflict of Interest on June 1, 2005. 

 

Ms. Castello advised that staff was proposing five revisions to the COI.   Four of the revisions were substantive and one was a non-substantive revision.  She identified the first substantive revision as removing the title of Investment Managers from Section 87200 filers.  The District had received a ruling from the Fair Political Practices Commission advising that independent investment managers were not required to file with the District.  The second substantive revision was adding the Environmental Compliance Officer position to the list of Category II designated filers.  The third substantive revision was amending language in the Disclosure Category to add the reporting of real property within the District to comply with the Political Reform Act.  The fourth substantive revision included updating the list of disclosure categories to include Information Technology.  The non-substantive amendment addressed changing the position title of the Human Resources Manager to the Human Resources and Risk Manager to reflect the current position title. 

 

Ms. Castello reported that the District had noticed the intent to change the COI in the Contra Costa Times on April 19, 2007 and that notices had been posted at District sites.  The 45-day written comment period expired on June 4, 2007 and no written comments had been received.  She advised that a public hearing and Board consideration was necessary to move forward with the recommended changes to the code. 

 

President Campbell asked if there were questions for the presenter.  There were no questions.

 

At 7:04 p.m., President Campbell opened the public hearing.  There were no comments. 

 

At 7:05 p.m., President Campbell closed the public hearing.

 

MOTION:  Wandry/Boatmun to adopt Resolution No. 07-13 Amending the Code of Regulations – Chapter 3.08, Conflict of Interest Code.  The motion passed by a unanimous voice vote. 

 

10.        Award bids for FY08 water treatment chemicals requirements to the companies listed on Bid and Cost Summary at the indicated unit prices for a total cost not to exceed $2,427,300 in FY08. 

 

Mr. Bishop reported that this item was on the action calendar due to the dollar amount of the bid summary.  The District had followed the standard bid practices.  Two companies had provided two-year pricing for FY08 on four water treatment chemicals.   He also advised that this item was funded in the FY08 approved budget. 

 

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

 

MOTION:  Burgh/Boatmun to award bids for FY08 water treatment chemicals requirements to the companies listed on Bid and Cost Summary at the indicated unit prices for a total cost not to exceed $2,427,300 in FY08.   The motion carried by a unanimous voice vote. 

 

11.        Sale of Series O Water Revenue Refunding Bonds

            a.   Adopt Resolution No. 07-14 approving the form of the official statement, official notice of bond sale, notice of intention to sell and escrow agreement relating to the sale and issuance of the Contra Costa Water District water revenue refunding bonds, Series O; authorizing and ratifying advertisement for and solicitation of bids for the purchase of such bonds; and authorizing the execution of the official statement and escrow agreement to be used in connection with the bonds and related actions; and

            b.   Adopt Sixteenth Supplemental Resolution No. 07-15 authorizing the issuance of $74,000,000 principal amount of water revenue refunding bonds, Series O.

 

Mr. Bishop advised that Director of Finance Brice Bledsoe would be giving a presentation. 

 

Mr. Bledsoe reported that historically the District had refunded approximately $470 million in bonds and achieved approximately $19 million of debt service savings to date.    He explained that given the current market interest rate environment, an opportunity existed to refund $67.7 million of existing Series J and H bonds issued for the Los Vaqueros Reservoir.  The District would need to issue up to $74 million of new refunding bonds, Series O bonds, to accomplish this. 

 

Mr. Bishop advised that the bonds would be bid in accordance with Board policy. 

 

Mr. Bledsoe also reported that the District was projecting approximately $3.9 million in savings from the refunding.  He explained that $3.1 million would occur in Fiscal Years 2008 and 2009, which would maximize the financial flexibility to the District on how to utilize the savings.  The bonds met the District’s criteria for refunding.  He also advised the bonds would be re-evaluated on the date of sale to insure that they met the criteria prior to executing the refunding. 

 

Mr. Bledsoe explained that the first resolution before the Board would approve the form of the bond sale and it also authorize and ratify the advertisement of solicitation of bids.  It also would authorize the execution of the official statement and escrow agreement necessary to implement the refunding.  The second resolution supplemented the original master bond resolution approved by the Board in October 1987. 

 

Mr. Bledsoe reviewed the bonds being considered for refunding and identified them as the Series H and Series J Bonds.  He reported that the amount to be refunded for the Series H bonds was $29.7 million.  The bonds were originally issued in December 1997 and were refunding bonds.  He advised that the bonds were current refunding and could be retired immediately upon execution of the bond sale, which would give them a very short escrow period.  He also advised that $38 million of Series J Bonds would be refunded.  These bonds were issued in August 1999 and were the last new money bond issue to fund construction of the Los Vaqueros Reservoir.  He explained that the bonds were considered to be advance refundable and were not callable until October 2009.  He explained that the bond proceeds from the new bonds would be placed in an escrow account.   

 

President Campbell asked if the escrow account would earn interest.  Mr. Bledsoe responded yes.  

 

Mr. Bledsoe reviewed the schedule and noted that, pending Board approval and market conditions, the bond sale would occur on June 14.   The bond delivery and closing would take place on July 5. 

 

Mr. Bishop reported that the item was presented to the Finance Committee on May 15, 2007.  The Finance Committee would be contacted the day of the bid opening for concurrence that the District’s criteria were met before the bonds were executed.  He advised that, if the bonds did not meet the District’s criteria, the Board would be notified that the District would not be awarding at that time. 

 

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

 

MOTION:  Boatmun/Burgh to a) adopt Resolution No. 07-14 approving the form of the official statement, official notice of bond sale, notice of intention to sell and escrow agreement relating to the sale and issuance of the Contra Costa Water District water revenue refunding bonds, Series O; authorizing and ratifying advertisement for and solicitation of bids for the purchase of such bonds; and authorizing the execution of the official statement and escrow agreement to be used in connection with the bonds and related actions; and b) adopt Sixteenth Supplemental Resolution No. 07-15 authorizing the issuance of $74,000,000 principal amount of water revenue refunding bonds, Series O.   The motion carried by a unanimous voice vote. 

 

12.        Adopt Resolution No. 07-16 amending the budget for FY08 which, 1) increases the FY08 operating budget by $506,505; 2) increases the FY08 capital budget by $17,482,000; 3) authorizes $1.0 million increase to operating contingency; 4) authorizes $1.2 million in capital budget transfers within the FY08 budget with no net increase; and 5) authorizes filling three additional project positions.

 

Mr. Bishop advised that staff was available if the Board chose to have a presentation.  Vice President Anello commented that she would like a presentation on the item.

 

Mr. Bledsoe reported that the Board approved the FY07 and FY08 budgets on May 17, 2006.  The mid-year budget review provided an analysis of the FY07 results of operation and proposed adjustments to the FY08 adopted budget.  He advised that he would be reviewing the FY07 financial results, the FY08 proposed operating budget adjustments, the FY08 proposed capital budget adjustments and the FY08 proposed staffing adjustments.  These adjustments were consistent with the Capital Improvement Program and the Ten-Year Financial Plan. 

 

Mr. Bishop advised that the staffing adjustments were included in the approved budget. 

 

Mr. Bledsoe reported that there were approximately $6.3 million of positive financial impacts.  Revenues were approximately $4.3 million over budget and reduced operating expenditures and capital savings reflected a savings of approximately $2 million.  The categories within the operating revenues and the operating expenditures were reviewed.  Treated water sales were projected to be approximately $1.7 million over budget and the untreated water sales were predicted to be under budget.  He advised that the District was experiencing higher than normal water consumption due to the warm weather, which could result in more favorable financial results. 

 

Mr. Bledsoe reviewed the proposed FY08 operating budget adjustments totaling $1,506,505.  He identified the projects and advised that three of the related projects (the Brentwood Water Treatment Plant [WTP], the Advanced Treatment Phase 2, and the Delta Fisheries Study) were funded from outside sources.  He reported that the Brentwood WTP was being brought online sooner than anticipated and that the budget adjustments allowed for staffing of the plant.  He advised that the Aquatic Vegetation Management Study totaled $50,000.  He also advised that there was a $1 million increase in the operating contingency for potential Los Vaqueros refilling, which included water purchases and power costs. 

 

Mr. Bledsoe reviewed the capital budget adjustments totaling increases of $17.5 million.  He noted that two key projects were driving a significant portion of the adjustment due to accelerated project scheduled.  He identified the projects as the Brentwood WTP, with an adjustment totaling $5,100,000 and the Alternative Intake Project amounting to a change of $3,790,000. 

 

Mr. Bledsoe advised that approximately $8 million would be re-budgeted from FY07 to FY08.  Related projects consisted of the Alternative Intake Project, the Bollman 5kV Phase 2, Canal Levee Elimination, the Midhill II Reservoir Project and the San Miguel Pump Station.  Projects funded by others totaling $0.4 million included a share of the Randall-Bold pH Control Project, the Pittsburg Emergency Intertie and the East Bay Municipal Utility District Mokelumne Aqueduct. 

 

Mr. Bledsoe noted that there were budget transfers between project totaling $1.2 million with no net impact on the budget.  A review of the staffing requests for the Alternative Intake Project included three additional positions:  one principal engineer and two senior engineers.   Mr. Bishop advised that these positions would be project permanent positions. 

 

Responding to a question from Vice President Anello asking if these were new positions, Mr. Bishop replied that they would be new positions and the expenditures for these positions were included in the budget. 

 

President Campbell advised that there was a discrepancy on Exhibit A attached to the Resolution No. 07-16 in the Board packet and the copy of Exhibit A that the District Secretary had given him to sign.  He explained that there was a discrepancy of a half-time staff person.  Exhibit A in the packet reflected 334.5 staff persons and the one he was given to sign was 335.  Mr. Bishop commented that for the purpose of the record he would appreciate it if the Board would consider the 335 for staffing.  President Campbell advised that by approving what was given him to sign he would be approving the 335 staffing. 

 

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

 

President Campbell asked if there were any questions of the presenter.  There were no questions. 

 

MOTION:  Boatmun/Wandry to adopt Resolution No. 07-16 amending the budget for FY08 which, 1) increases the FY08 operating budget by $506,505; 2) increases the FY08 capital budget by $17,482,000; 3) authorizes $1.0 million increase to operating contingency; 4) authorizes $1.2 million in capital budget transfers within the FY08 budget with no net increase; and 5) authorizes filling three additional project positions.   The motion carried by a unanimous voice vote. 

 

REPORTS FOR DISCUSSION

 

13.        Committee Report(s)

            a.   Association of California Water Agencies Communications Committee Post-Meeting Report (5/8/07)

            b.   Board of Supervisors’ – Transportation, Water & Infrastructure Committee Post-Meeting Report (5/14/07)

            c.   Finance Committee Post-Meeting Report (5/15/07)

            d.   Operations and Engineering Committee Post-Meeting Report (5/17/07)

            e.   Retirement Committee Post-Meeting Report (5/18/07)

            f.    Bay Area Water Forum Post-Meeting Report (5/21/07)

 

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

 

14.        Schedule Future Meeting Dates and Times

 

Mr. Bishop advised that the District Secretary would be contacting the Board to establish a date for the joint meeting with Diablo Water District.  He also advised that the annual Health and Safety Faire would be held on June 7 beginning at 11:30 a.m. at District Center. 

 

REPORTS

 

15.        General Manager

 

Mr. Bishop gave a brief update on the state budget and funding related to District projects.   He also gave an update on pumping in the Delta.  He commented on a letter sent from the  Department of Fish and Game to voluntarily curtail pumping and advised that the District had curtailed pumping by 50 cubic feet per second (cfs) at the Old River Intake.  He also advised that the District was meeting current system demands.  

 

16.        Legal Counsel

 

Mr. Maddow thanked the Board for the action on Agenda Item No. 8 and noted that the firm of Bold, Polisner, Maddow, Nelson & Judson was proud to represent the District.  

 

17.        Board Members

 

Director Burgh commented on an incident concerning a water issue at the City of Clayton’s Dog Park and the positive experience he had when notifying the District.  He also commented positively on the Kennedy King Scholarship Foundation Awards dinner that he attended on May 18, and noted that Director Boatmun was held in great esteem with the Kennedy King Scholarship Foundation.  He also reminded the Board that he would be out of town on June 20 and would not be attending the Board meeting. 

 

Director Boatmun reported that she attended the ACWA Board of Directors meeting on May 31 and June 1.  The meeting on May 31 concerned the Water Bond and she commented on the amount of data received from a poll done by the State Chamber of Commerce.   Responding to a question from Mr. Bishop as to whether or not she received written data, Director Boatmun replied no.  She advised that ACWA Executive Director Steve Hall’s last ACWA Board of Directors meeting was on June 1. 

 

Director Boatmun also requested compensation for a Sunday, April 15 meeting.  She stated that she attended an ACWA Region 5 reception and business meeting on that date.  President Campbell asked about the reception.  Director Boatmun replied that there was a reception at a winery and that during part of the evening there was a business meeting; the next day there was a program.  The meeting was included in the minutes.   She requested compensation for April 15. 

 

Vice President Anello complimented and thanked Mr. Bledsoe for his efforts working with the Finance Committee.  She also advised that she would be attending the Mayors’ Conference on June 7 in Clayton and the Contra Costa Council Water Task Force on June 19. 

 

Director Wandry reported that he would be attending the District’s Health and Safety Faire on June 7 and that he would also be attending the Summer Lakes Ribbon Cutting Ceremony on June 9.

 

President Campbell did not have a report. 

 

CLOSED SESSION

 

18.        Conference with Legal Counsel - Anticipated Litigation as allowed under Government Code 54956.9(c):  - three cases

 

At 7:45 p.m., President Campbell announced that the Board would move into closed session to discuss matters concerning anticipated litigation which did not require the announcement of additional attendees. 

 

RECONVENE FROM CLOSED SESSION

 

19.        Report on closed session.

 

At 7:50 p.m., President Campbell reconvened the meeting and announced that the Board did not take any action on the matters before it.   

 

ADJOURNMENT

 

At 7:51 p.m., President Campbell adjourned the meeting to the next regular meeting of the Board of Directors scheduled for June 20, 2007 commencing at 6:30 p.m.

 

 

 

 

 

 

 

                                                                                                                                                        

                                                                                                Joseph L. Campbell, President

 

ATTEST:

 

 

 

                                               

Sharon L. Burris

District Secretary