CONTRA COSTA WATER DISTRICT

BOARD OF DIRECTORS

REGULAR MEETING

June 20, 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

                                                            Karl L. Wandry

            Directors Absent:                       Bette Boatmun

                                                            John A. Burgh

            General Manager:                       Walter J. Bishop

            Legal Counsel:                           Robert B. Maddow

            District Secretary:                      Sharon L. Burris

 

President Campbell noted that Director Boatmun and Director Burgh were absent and that they were approved absences. 

 

PLEDGE OF ALLEGIANCE

 

Purchasing Officer Doug Anderson led the Pledge of Allegiance. 

 

ADOPTION OF AGENDA

 

Mr. Bishop advised 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.   Expenses – May/June

           

2.         Approve the minutes of May 16, 2007.

 

3.         Approve the warrant register dated June 21, 2007.

 

4.         Authorize an increase of $50,000 for the construction contract with JMB Construction Inc. for the Treated Water Fault Crossings Project for a revised total authorization not to exceed $800,750. 

 

5.         Authorize contract for banking services with Bank of the West for an amount not to exceed $69,000 per year for FY08 through FY12 for a total of $345,000.  Contract approval for years FY09 through FY12 are subject to the Board adopted budgets for these years.

 

6.         Authorize execution of a lease with John Muir Hospital for parking on 2.4 acres of District property in Concord for a one-year term for a payment of $76,000 with the option to renew for an additional year at $76,000. 

 

7.         Authorize execution of an agreement with Wiley, Price & Radulovich to provide employment and labor law special counsel services for FY08, in an amount not to exceed $95,000. 

 

8.         Authorize execution of an agreement with Public Policy Advocates for government relations services for FY08 in an amount not to exceed $100,000.

 

9.         Adopt Resolution No. 07-17 certifying the revenue required to be provided by taxes on land in the District during fiscal year 2007-2008.   

 

10.        Alternative Intake Project – Labor Stability Analysis and Agreement to Negotiate and Administer Project Labor Agreements

            a.   Adopt Resolution No. 07-18 authorizing implementation of a labor stabilization program for the Alternative Intake Project by requiring the construction contractor and subcontractors to sign the Project Labor Agreements for this project.

            b.   Authorize execution of an agreement to negotiate and administer Project Labor Agreements for the Alternative Intake Project, in an amount not to exceed $175,000.

 

11.        Authorize the execution of an agreement with Wausau Insurance Company for

            “zero deductible” Workers’ Compensation insurance coverage for FY08, for a total

            amount not to exceed $571,000.

 

12.        Authorize contracts for routine goods and services at an aggregate amount not to exceed $730,000 for FY08 and not to exceed $579,000 in FY09, subject to the Board adopted budgets for these years. 

 

President Campbell commented positively on Agenda Item No. 10 - Alternative Intake Project – Labor Stability Analysis and Agreement to Negotiate and Administer Project Labor Agreements and noted that the document was well done, thorough and complete.  He also advised that a representative from Scarth-Lyons & Associates, Michael Vlaming was in the audience. 

 

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

ACTION

 

13.        Fiscal Year 2008 Major Policy Calendar

            a.   Receive and comment on the Contra Costa Water District’s Major Policy Calendar for Fiscal Year 2008; and

            b.   Concur with rescheduling the July 4, 2007, November 21, 2007, and May 7, 2008 Board of Directors meetings to July 11, 2007, November 14, 2007, and April 30, 2008, respectively. 

 

Mr. Bishop noted that Executive Management Analyst Desiree Castello would be making a presentation on the Major Policy Calendar (MPC).  He reported that he had received a comment concerning the calendar and advised that Ms. Castello would be explaining why there was only one Board meeting proposed for May 2008. 

 

Ms. Castello reported that the FY08 MPC summarized policy-related items anticipated for Board consideration during the period from July 1, 2007-June 30, 2008.  The MPC was updated semi-annually and was last reviewed by the Board its January 17, 2007 meeting.  This update would review significant changes and request the Board’s approval to reschedule three upcoming meetings dates. 

 

Ms. Castello advised that the key programs and projects had been grouped into major categories.  She identified three of the significant ongoing projects as the Alternative Intake Project, the Canal Replacement Project and the Los Vaqueros Reservoir Expansion.   She also identified three new items as the East County Integrated Regional Water Management Plan, the Geographical Information System (GIS) Implementation and the review and approval of the FY09 and FY10 budgets.

 

Ms. Castello explained the layout of the calendar and noted that the District’s regular Board meetings were scheduled for the first and third Wednesdays of each month.  She reported that the Board’s semi-annual study session and the upcoming Association of California Water Agencies (ACWA) Conferences were also identified on the MPC.  Addressing the Board meeting dates, Ms. Castello noted that staff was proposing to reschedule the November 21, 2007 meeting to November 14.  She also advised that the 2008 ACWA Spring Conference conflicted with the Board’s regular meeting schedule for the first meeting in May 2008.  Staff was proposing that this meeting be rescheduled to a special Board meeting on April 30, which would mean that there would be three Board meetings in April and only one Board meeting in May 2008. 

 

Ms. Castello advised that the recommendation before the Board was to concur with rescheduling the Board meeting dates from November 21, 2007 to November 14, 2007 and rescheduling the meeting for May 7, 2008 to April 30, 2008.  She advised that rescheduling the July 4, 2007 meeting to July 11, 2007 was discussed at the MPC review on January 17, 2007. 

 

The Board concurred to accept the changes. 

14.        Legislative Affairs Report – June 2007

            Review update on legislative issues and adopt District positions for the following:  State Legislation AB 554 (Hernandez) – Public Employees:  Benefits – Watch; AB 946 (Krekorian) – Electricity:  Renewable Energy Resources – Support; AB 1470 (Huffman) – Solar Energy:  Solar Hot Water and Efficiency Act – Support; SB 258 (Ducheny) – Water Use Fees – Change from Watch to Support if Amended; and Federal Legislation HR 452 (Matsui) Central Valley Project – Oppose Unless Amended.

 

Mr. Bishop reported that Director of Public Affairs Patty Friesen would be providing the legislative update. 

 

Ms. Friesen reported on the following state legislation:

 

AB 554 (Hernandez) – Public Employees:  Benefits – Ms. Friesen reported that this bill allowed public agencies to contract with the California Public Employees’ Retirement System (CalPERS) to pre-fund post-employment health care benefits required by the Government Accounting Standards Board standard number 45 (GASB 45).  She advised that the District was proactively engaged in complying with GASB 45 and developing a plan to fund the “other post employment benefits” (OPEB).  This legislation would provide flexibility for meeting the pre-funding obligations.  She advised that the details and costs were not defined at this time.  The District recommended a Watch position for this bill. 

 

AB 946 (Kerkorian) – Electricity: Renewable Energy Resources – This bill would allow public agencies to receive incentives to construct solar facilities on property under the agency’s control.  Ms. Friesen reported that the District could sell the power generated from a project onto the grid at wholesale rates and offset monthly energy use charges.  The bill would also allow a water agency that moves water through its system via gravity to install small turbines in the pipelines and generate hydro-electricity.  She advised that incentives were provided for those types of projects.  These incentives for renewable electricity could help potential District projects, which would help meet the District’s cost benefit ratio.  The District’s recommended position was to Support the bill.

 

AB 1470 (Huffman) – Solar Energy:  Solar Hot Water and Efficiency Act – Ms. Friesen reported that the bill would promote incentives for hot water systems and other technology that reduce natural gas demands.  She advised that incentives would be in place through the Public Utilities Commission (PUC) and the California Energy Commission.  The legislation would allow 200,000 solar hot water systems in homes and businesses throughout the state by 2017.  Studies had shown that benefits of solar heating could be substantial with the statewide reduction of 5% which was consistent with the District’s interest in increasing energy efficiency.  The recommended position for the bill was Support. 

 

SB 258 (Ducheny) – Water Use Fees – The bill would require the State Water Resources Control Board (Board) to calculate fees imposed on water agencies on the basis of actual water use in the prior year.  Ms. Friesen reported that the methodology and application of user fees by the Division of Water Rights (Division) was challenged in court by the District and others.  The California Supreme Court had granted a review of the case.  The legislation provided a platform for the Board to assess fees in the administration of water rights in a fair and equitable manner.  Ms. Friesen advised that the District should seek an amendment to provide some state funding.  This would insure that the Division could perform its public trust responsibilities in ensuring the proper allocation and efficient use of California water resources.  She advised that the District had previously taken a Watch position on the bill, and it was now recommended that a position of Support be taken with this amendment. 

 

Ms. Friesen reported on the following federal legislation:

 

HR 452 (Matsui) – Central Valley Project – This legislation provided for deferral of capital cost repayment responsibility for unused conveyance capacity of the Folsom South Canal.  Ms. Friesen advised that the District should seek an amendment that would link the timing for implementing the capital cost deferral, which would eliminate capital repayment obligation for the oversized capacity in the Canal, with the implementation of a Central Valley Project (CVP) standby charge.  The standby charge would obligate East Bay Municipal Utility District (EBMUD) to pay an equitable share of the annual fixed operation and maintenance expenses in the years where EBMUD takes no delivery of CVP water.  The establishment of the CVP standby charge was established in the Freeport litigation settlement agreement.  Staff recommended a position of Oppose Unless Amended for this legislation. 

 

Discussion took place on the terms of the Freeport Settlement Agreement.  Mr. Bishop advised that the District’s intent was to retain the integrity of the agreement. 

 

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

 

MOTION:  Wandry/Anello to adopt District positions for the following:  State Legislation AB 554 (Hernandez) – Public Employees:  Benefits – Watch; AB 946 (Krekorian) – Electricity:  Renewable Energy Resources – Support; AB 1470 (Huffman) – Solar Energy:  Solar Hot Water and Efficiency Act – Support; SB 258 (Ducheny) – Water Use Fees – Change from Watch to Support if Amended; and Federal Legislation HR 452 (Matsui) Central Valley Project – Oppose Unless Amended.  The motion carried by a unanimous voice vote. 

 

DISCUSSION AND INFORMATION

 

15.        Receive the triennial Report on Public Health Goals and provide opportunity for public comment.   

 

Mr. Bishop advised that Water Operations Manager Dave Huey would be providing a presentation.  He also advised that this public presentation was required by a provision in the California Health and Safety Code. 

 

Mr. Huey reported that the Public Health Goals (PHG) were set by the California Office of Environmental Health and Hazard Assessment.  The PHG’s set at the state level and the Maximum Contaminant Level Goals (MCLGs) set by the United States Environmental Protection Agency (EPA) were non-enforceable.  The purpose of the report was to provide the public with information and an opportunity to comment. 

 

The data collected for the report was for calendar years 2004-2006.  The District was required to report any exceedances on the report.  Mr. Huey advised that there were no exceedances on the state PHG or the federal MCLG list.     

 

Mr. Huey explained that both PHGs and MCLGs were set at levels where there was a zero health risk.  He advised that there were 82 constituents on the state PHG list and that the District had no exceedences during the reported period.  He also advised that 80 constituents had MCLGs and total coliform (TC) was the only exceedence.   He explained that TC bacteria were not a specific health risk.  It was an indicator of potential contamination requiring follow-up sampling.  He advised that follow-up sampling indicated no contamination.

 

President Campbell referenced an incident at the Clayton tank that later proved to be the testing station.  He asked if that incident was reported even though after retesting it showed no contamination.  Mr. Bishop replied that it would show up on the report. 

 

Mr. Huey reported that over 6,000 TC samples were collected during the three-year period and only 13 samples tested positive.  The re-sampling confirmed negative in all cases. 

 

President Campbell asked about new construction that had not yet been connected to the water main.  Mr. Bishop replied that a series of test were conducted before new construction was allowed to be connected to the system.  President Campbell asked if new construction did not pass the test if that was entered in the log.  Mr. Huey responded that it was tracked but it did not go in the report. 

 

Mr. Huey reported that the District was in full compliance with all drinking water regulations, monitory and reporting requirements.  He also reported that the PHG report would be posted on the District’s website, which would make it available for public review. 

 

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

 

President Campbell, Vice President Anello and Director Wandry thanked Mr. Huey for his presentation. 

 

REPORTS FOR DISCUSSION

 

16.        Schedule Future Meeting Dates and Times

 

Mr. Bishop reported that he would be attending his last meeting as Chair of the Awwa Research Foundation (AwwaRF) in Toronto, Canada on June 22-26.  He advised that Assistant General Manager of Engineering Tom Linville would also be attending a portion of the meeting.  Assistant General Manager of Administration Kurt Ladensack would be Acting General Manager during that time. 

REPORTS

 

17.        General Manager

 

Mr. Bishop commented on the Contra Costa Council Delta Vision Statement of Principles report provided to the Board that evening.  He advised that the Council had approved the report and that District staff had contributed to its drafting. 

 

President Campbell commented that there was a lot of discussion concerning the statement.  He acknowledged and thanked Assistant General Manager Planning/Delta Projects Greg Gartrell, Director of Planning Jerry Brown, and Ms. Friesen for their contribution to the document.  He advised that the vote was taken at the Council Board of Directors meeting on June 15, and there was no discussion or opposition to the recommendations. 

 

18.        Legal Counsel

 

Mr. Maddow commented briefly on SB 258 – Water Use Fees.  He also commented on a State Water Resources Control Board workshop held on June 19 concerning enforcement of water rights and Mr. Gartrell’s constructive comments at the workshop. 

 

19.        Board Members

 

Director Wandry reported that he would be out of town June 26-29. 

 

Vice President Anello did not have a report.

 

President Campbell commented that the June 15 Board letter stated that the District had received an award from Government Finance Officers Association for outstanding financial reporting.  He advised that he had received the information in his mail packet and that he was forwarding it to staff.    

 

ADJOURNMENT

 

At 7:00 p.m., President Campbell adjourned the meeting to an adjourned regular meeting of the Board of Directors scheduled for July 11, 2007 commencing at 6:30 p.m.

 

 

 

 

                                                                                                                                                        

                                                                                                Joseph L. Campbell, President

 

ATTEST:

 

                                               

Sharon L. Burris

District Secretary