CONTRA COSTA WATER DISTRICT

BOARD OF DIRECTORS

REGULAR MEETING

July 18, 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:                           Carl P.A. Nelson

            District Secretary:                      Sharon L. Burris

 

President Campbell noted that Director Boatmun was absent and that it was an approved absence. 

 

PLEDGE OF ALLEGIANCE

 

Director of Engineering Steve Welch 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.

 

President Campbell acknowledged Bonnie Couch, a District employee, in the audience. 

 

President Campbell asked if there were any objections to moving to the action calendar prior to the consent calendar.  There were no objections. 

 

ACTION

 

5.         Adopt Resolution No. 07-20 Authorizing Execution of Amendment No. 12 to the Retirement Plan Trust Agreement.

 

President Campbell explained the process.  He advised that staff would give a presentation and the Board would query staff, if they had questions.  Public comments would then be heard on the item before the Board deliberated. 

 

Mr. Bishop advised that Assistant General Manager of Administration Kurt Ladensack would be making a presentation.

 

Mr. Ladensack’s advised that the proposed amendment to the Retirement Plan would address an inequity that had risen from an Internal Revenue Code (IRS) Section 401 (a) (17).  This section of the code set the cap at $225,000 on the amount of salary that could be considered when calculating a defined benefit pension.   He advised that this prevented the affected employee from receiving the same defined benefit provided to all other plan participants as having their benefit calculated on the highest 12 consecutive months. 

 

Mr. Ladensack advised that Amendment No. 12 would address the inequity and authorized service credit to be allocated in such an amount to result in the benefit payment being equal to what would otherwise have been provided in the absence of the “cap.”  The District Retirement Plan actuary and their tax counsel advised that implementation of the proposed amendment conforms to applicable statutes and IRS regulations.  He also advised that implementation of the provision must be expressly amended into the Retirement Trust Agreement.  Mr. Ladensack reviewed the language in the Retirement Trust Agreement.

 

President Campbell asked if this was the same language that was provided in the Board agenda packet on July 13.  Mr. Ladensack responded yes.

 

Mr. Ladensack reported that the Board had been provided with a summary of the notes from the Retirement Committee Meeting held on July 17, 2007, where this amendment was presented for consideration.  The results of the vote of the six member committee resulted in two votes in favor of the amendment, three opposed to the amendment, and one abstained. 

 

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

 

President Campbell asked for public comments and invited Ms. Couch to the podium. 

 

Ms. Couch addressed the Board and advised that she was present to say that she had nothing more to add to the letters that she had sent (previously) regarding the issue.  She stated for the record, that her only concern was and has always been the viability of the trust.  She commented that she had watched the trust grow from $5 million to over $100 million.  She advised that she had provided the Board with all of the information that she could give them and encouraged the Board to protect the trust. 

 

President Campbell asked if there were any questions for the speaker. 

 

Director Wandry asked Ms. Couch if she thought the amendment violated the “trust” of the trust.  Ms. Couch responded yes.  Director Wandry asked in what way.  Ms. Couch replied that one of the basic components of the trust was that the employee received a benefit for the time served, either at the District, or through reciprocity, time that an employee served at another public entity.  She advised that the components that comprised an individual’s benefit was based on years of service, age, and base salary.  She stated that “time is time.”  She did not believe that it was fair to be able to purchase additional time because it was not time served; the person was not present.  She was present everyday, as were her coworkers, in order to earn that benefit.

 

Director Wandry asked if she saw that there was an inequity under the IRS cap and what the trust provides for now in terms of highest annual salary.  Ms. Couch responded no, at this time the IRS also caps many other plans including traditional and Roth IRAs.  She also commented that Social Security caps everyone and no one was asking for more Social Security.  She indicated that she saw no difference in this situation.    

 

Director Wandry commented that the Board did not have control over Social Security.  He asked if she saw a conflict under the current provisions of equity on the highest annual salary and not amending the trust.  Ms. Couch responded that as far as inequity, we should all live under the law.  The law says there is a cap, the law says what the cap is and given circumstances now, she was sure that there were other ways to make up for an inequity.  But, using the trust in that way, no, she did not think that was right. 

 

Director Wandry stated that there was a provision in the trust currently that says that an employee is eligible for retirement under their highest consecutive 12 months of salary and that was currently in conflict with the IRS ruling because the trust doesn’t establish a cap.  He asked Ms. Couch if that was her understanding.  Ms. Couch stated that she understood that the trust had been in existence since 1962 and that provision had been in place since 1962.  Any time a provision exists before the law it is still eligible through the law.  Director Wandry thanked Ms. Couch.

 

President Campbell asked if there were any other questions.  There were no other questions.  President Campbell asked if anyone else would like to speak to the item.  There were no other speakers.  President Campbell thanked Ms. Couch.    

 

President Campbell advised that he intended to support the amendment for two reasons.  The first reason was that the IRS cap was the same in all parts of the United States and there was a disparity in earnings among regions.  The second reason was a component of fairness and he wanted everyone to be treated fairly and equally.    

 

Director Burgh advised that he would be supporting adoption of the proposed amendment.  He also commented that the overriding concern was fairness.  He commented on the complexity of the IRS and tax codes.  He also commented positively on the success of the District’s funded retirement plan and the employees and the Board working together for quality and equity for everyone in the District irrespective of their duties. 

 

Director Wandry thanked Ms. Couch and stated that he agreed with her last comment that what was in the original trust should be honored.  This provision goes to that end and he would be supporting the amendment.

 

MOTION:  Anello/Wandry to adopt Resolution No. 07-20 Authorizing Execution of Amendment No. 12 to the Retirement Plan Trust Agreement.   The motion carried by a unanimous voice vote. 

 

6.         Legislative Affairs Report – July 2007

            Review update on legislative issues and adopt District positions for the following:  State Legislation AB 566 (Plescia) – Water Conservation – Support; AB 1489 (Huffman) – Resource Bond Funds – Support if Amended; SB 378 (Steinberg) – Disaster Preparedness and Flood Prevention Act – Support if Amended; SB 660 (Perata) – Clean Technology and Climate Change Research – Support; and Federal Legislation HR 2337 (Rahall) Energy Policy Reforms and Revitalization Act – Support. 

 

Mr. Bishop reported that Director of Public Affairs Patty Friesen would be making a presentation. 

 

Ms. Friesen reported on the following state legislation:

 

AB 566 (Plescia) – Water Conservation – Ms. Friesen reported that this bill would develop and enhance existing technology that provided weather-based data for optimal irrigation schedules, known as “smart sprinklers.”  It would develop a standard protocol for data to be provided through the California Irrigation Management Information System.  The sprinklers could save residents an average of 37 gallons of water per day (gpd) and businesses could save an average of 545 gpd.  The bill would save water resources and also reduce urban runoff.  She advised that this bill was excellent conservation policy.  The recommended position was to Support the bill.

 

AB 1489 (Huffman) – Resource Bond Funds – This legislation would provide guidelines for Proposition 84 and specifically addressed the development of Integrated Regional Water Management Plans (IRWMP).  Ms. Friesen advised that the District had participated in the Bay Area and East County IRWMPs and supports investments that yield significant statewide and regional benefits.  She reported that the bill also required a public process that included a prescriptive list of stakeholders and participants that should be included in the public hearing.  This would put water agencies at a disadvantage to receive voter authorized bond funds intended for water management projects.  The recommendation was for an amendment be sought that would eliminate the prescriptive language for public hearings and public process and rely on the public notice and stakeholder involvement required by the existing grant funding guidelines.  The District recommended a position of Support if Amended. 

 

Mr. Bishop commented briefly on previous propositions that had passed which did not produce state-wide benefits.  He also commented that the District’s Alternative Intake Project (AIP) and the Canal Replacement Project would create a state-wide benefit. 

 

SB 378 (Steinberg) – Disaster Preparedness & Flood Act – This bill was part of a package of bills to provide direction on voter-approved bond funds.  It ensures that final grant program funding that result in realistic funding strategy, improved real-time flood management and promotion of smart growth patterns.  The bill refines priorities to ensure investments result in the greatest public good and establishes necessary public processes to ensure that projects meet local needs.  Ms. Friesen advised that an amendment should be sought to require a 3% cap on administrative fees unless budget provisions explicitly authorize a higher percentage.  The recommended District position for this bill was to Support if Amended. 

 

SB 660 (Perata) – Clean Technology and Climate Change Research – This bill would establish the Strategic Clean Technology and Climate Change Research, Development and Demonstration Program.  It provides funding and coordination of climate change impact reports being required by many state agencies.  Ms. Friesen advised that local entities were now being required to assess individual micro-climate impacts on a regional basis for inclusion in state plans.  It would be more appropriate for the state to provide the analysis of the effect of climate change on a statewide or regional level.   The District’s recommended position was to Support the legislation. 

 

Ms. Friesen reported on the following federal legislation:

 

HR 2337 (Rahall) – Energy Policy Reforms and Revitalization Act – This bill contains numerous initiatives on energy and climate change, including programs for wind energy.  It establishes a study of the impacts of climate change on federal lands, the ocean environment and federal water infrastructure.  Ms. Friesen reported that it would require Reclamation to develop consistent protocol to incorporate climate change into its decision making process.  It would also require a plan specifying water resources management during prolonged periods of drought.  The bill would promote increasing energy efficiency through alternative energy sources.  The District recommended position for the bill was Support. 

 

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

 

MOTION:  Wandry/Burgh to adopt District positions for the following:  State Legislation AB 566 (Plescia) – Water Conservation – Support; AB 1489 (Huffman) – Resource Bond Funds – Support if Amended; SB 378 (Steinberg) – Disaster Preparedness and Flood Prevention Act – Support if Amended; SB 660 (Perata) – Clean Technology and Climate Change Research – Support; and Federal Legislation HR 2337 (Rahall) Energy Policy Reforms and Revitalization Act – Support.  The motion carried by a unanimous voice vote. 

 

Mr. Bishop commented briefly on the status of the state budget and how it could impact the District.  He also commented on very quick turnaround of information provided to the District’s State Lobbyist Julee Malinowski-Ball who was able to obtain support from legislators for District projects. 

 

Director Wandry thanked President Campbell, staff, and the lobbyist for the efforts put forth and the rapid response. 

 

CONSENT

 

1.         Approve Directors’ Services/Business and Travel Expenses

            a.  Future Services – September

 

2.         Approve the warrant register dated July 19, 2007.

3.         Award of Contract – FY08 Mallard Reservoir Liner Repairs Project

            a.   Authorize a $17,574 FY08 budget transfer from the Stormwater Remediation Project to the Untreated Water Reservoir Rehabilitation Program; and

            b.   Authorize execution of a contract with Johnson Western Gunite Company for the FY08 Mallard Reservoir Liner Repair Project in the amount of $359,112, plus a 20% change order authority of $71,822, for a total amount not to exceed $430,934.

 

4.         Adopt Resolution No.07-19 Authorizing Amendment of the General Manager’s Memorandum of Understanding. 

 

Director Burgh removed Item No. 1.  Approve Directors’ Services/Business and Travel Expenses a. Future Services – September from the consent calendar.

 

President Campbell asked if there were any other items to be removed.  There were none. 

 

MOTION:  Burgh/Anello to approve the consent calendar with the exception of Agenda Item No. 1.a.   The motion carried by a unanimous voice vote. 

 

1.         Approve Directors’ Services/Business and Travel Expenses

a.  Future Services

 

Director Burgh advised that he would be out of town during the time of the WateReuse Conference and that he would be unable to attend.    He requested that the item be withdrawn from the agenda.    

 

REPORTS FOR DISCUSSION

 

7.         Committee Report(s)

            a.   Board of Supervisors’ – Transportation, Water and Infrastructure Committee

                   Post-Meeting Report (7/9/07)

 

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

 

8.         Schedule Future Meeting Dates and Times

 

Mr. Bishop commented on the Washington, D.C. Legislative trip scheduled for July 25-27.  He noted that the Board had received the binder summarizing the meetings that would take place on July 26.  He also reported that he would be on vacation from July 28-August 14.   Assistant General Manager of Engineering Tom Linville would be Acting General Manager July 25-August 3.  Kurt Ladensack would be Acting General Manager August 4-14.    

 

REPORTS

 

9.         General Manager

 

Mr. Bishop introduced the District’s new Senior Public Information Specialist Jennifer Allen to the Board. 

 

Mr. Bishop also acknowledged and thanked Principal Engineer Samantha Salvia who had given notice of her planned resignation from the District.  He noted that she had been working on some very significant reports regarding the District’s Alternative Intake Project.  He commented that much of the credit for that project went to Ms. Salvia and how she handled it. 

 

President Campbell addressed Ms. Salvia and commented that the Board had asked that she be present at a Board meeting.  He commended Ms. Salvia for her work at the District and noted that she had been an asset to the District and that she would be missed. 

 

Ms. Salvia addressed the Board.  She expressed that she welcomed the chance to publicly thank the Board for the opportunity to work at the District.  She appreciated that the District took a chance on a young engineer and put her in charge of a project.  She commented that it was a real privilege to work at the District and thanked them for the opportunity.   

 

President Campbell, Vice President Anello and Directors Wandry and Burgh thanked Ms. Salvia for her work for the District. 

 

Mr. Bishop also announced that Water Resources Manager David Briggs had accepted another position and would be leaving the District at the end of August.               

 

10.        Legal Counsel

 

Mr. Nelson did not have a report. 

 

11.        Board Members

 

Director Burgh commented positively on the press coverage the District is receiving concerning the proposed investments in the Delta.  He commented positively on an article in the Contra Costa Times on July 18, written by Columnist Mike Taugher.    He also reported that he would likely miss the Board meeting on September 5 due to being out of town. 

 

Vice President Anello reported that she would be attending the luncheon for Assemblymember Mark DeSaulnier on July 24.  She also reported that she would be attending the Habitat Conservation Plan Approval Ceremony on July 25. 

 

Director Wandry did not have a report. 

 

President Campbell did not have a report.

 

CLOSED SESSION

 

12.        Conference with Legal Counsel – Existing Litigation as allowed under Government Code 54956.9(a):  Fitzpatrick v. Contra Costa Water District.

 

13.        Real Property Transaction as allowed under Government Code Section 54956.8 –Property:  Clayton Regency Mobile Home Park Water Supply Contract; Negotiating Party:  Clayton Regency LLC and Contra Costa County; District Negotiator:  Walter J. Bishop; Issue:  Instruct Negotiator on Terms and Price.

 

At 7:10 p.m., President Campbell announced that the Board would move into closed session and that there were two matters before the Board.  One of the matters concerned existing litigation and did not require the announcement of additional attendees.  The other matter concerned real property negotiations and the additional attendees would include Director of Planning Jerry Brown and Director of Engineering Steve Welch. 

 

RECONVENE FROM CLOSED SESSION

 

14.        Report on closed session.

 

At 7:42 p.m., President Campbell reconvened the meeting and announced that the Board did not take any action on the matters before it.   

 

ADJOURNMENT

 

At 7:43 p.m., President Campbell adjourned the meeting to the next regular meeting of the Board of Directors scheduled for August 1, 2007 commencing at 6:30 p.m.

 

 

 

 

 

 

                                                                                                                                                        

                                                                                                Joseph L. Campbell, President

 

ATTEST:

 

                                               

Sharon L. Burris

District Secretary