CONTRA COSTA WATER DISTRICT

BOARD OF DIRECTORS

ADJOURNED REGULAR MEETING

April 30, 2008

 

MINUTES

 

 

CALL TO ORDER 

 

President Campbell called to order an adjourned 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.

 

PLEDGE OF ALLEGIANCE

 

Assistant General Manager of Planning/Operations and Maintenance Jerry Brown led the Pledge of Allegiance. 

 

ADOPTION OF AGENDA

 

Mr. Bishop reported that information had been received after the agenda was posted concerning negotiations with Golden State Water Company.  The District’s Counsel recommended that the Board take immediate action and agendize this matter for consideration for that meeting.  He advised that under Government Code 54956.8 four affirmative votes were required from the Board to determine that immediate action was necessary to add an item to the agenda.  He recommended that a motion be made to add the item as Agenda Item No. 14. 

 

MOTION:  Wandry/Burgh to add Agenda Item No. 14 to the agenda.  The motion carried by a unanimous voice vote. 

 

PUBLIC COMMENT

 

President Campbell asked if there were any public comments.  There were none.

CONSENT

 

1.         Approve Directors’ Services/Business and Travel Expenses

            a.   Future Services – May

            b.   Expenses – March/April

            c.   Compensation – April

 

2.         Approve the minutes of April 2, 2008.

                                         

3.         Approve the warrant register dated May 1, 2008.

 

4.         Adopt Resolution No. 08-09 regarding the City of Pittsburg Sky Ranch II annexation into the Contra Costa Water District Service Area (LAFC 07-23).

 

5.         Authorize the retention of Pete Billeci to provide skills training to the new electricians through June 30, 2008, for an amount not to exceed $9,000. 

 

6.         Authorize an amendment to the agreement with BKF Engineers for FY08 surveying services, in the amount of $32,000, for a revised total amount not to exceed $172,000. 

 

7.         Authorize the transfer of $300,000 from the FY08 General Manager’s Operating Contingency to the FY08 Operations and Maintenance Department’s Utility Budget for increased energy purchases. 

 

President Campbell advised that there were memos before the Board revising Agenda Item No. 1.a. – Future Services and Agenda Item No. 4 – Adopt Resolution No. 08-09 regarding the City of Pittsburg Sky Ranch II annexation.  Approval of the consent calendar would include those revisions.

 

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

 

DISCUSSION AND INFORMATION

 

8.         Review and concur with the assumptions for the FY09/FY10 budget.

 

Mr. Bishop advised that Director of Finance Brice Bledsoe would be making a presentation on the FY09/FY10 budget assumptions. 

 

Mr. Bledsoe advised that the budget would be presented at the May 14 Board meeting.  The budget conformed to the District’s Rate Setting and Reserve Policies and was largely based on the Board-adopted 2009-2018 Capital Improvement Program (2009 CIP).  He noted that he would be reviewing the two-year operating and capital budget assumptions.

 

Mr. Bledsoe identified the key budget assumption changes made from the 2009 CIP.  The first change was the FY08 projected results, which indicated that the District was projecting to end the fiscal year with approximately $5.4 million of positive financial plan benefits compared to the 2009 CIP.   The expanded use of commercial paper to fund the Alternative Intake Project (AIP) and other projects was the second change.  This would create approximately $1.6 million of net financial benefit for FY09 and $1.8 million of net benefit for FY10. 

 

Mr. Bledsoe reported that the third change was the acceleration of the Canal Replacement Project.  This project was delayed in 2007 due to anticipated impacts to Delta operations, which did not materialize.  The FY09/FY10 budget proposes that construction of this project begin in FY09, which was one year earlier than outlined in the 2009 CIP. 

 

Acceleration of Los Vaqueros (LV) Energy Recovery Project was the fourth change.  This change would offset increasing energy costs by implementing energy generating facilities, such as hydropower.  The proposed budget recommends accelerating construction of the project in FY10 and completion of the project in FY11.  He reported that approximately $2.4 million of the projected FY08 financial plan benefit would be used to fund the 50% grant funded project.  Grant funding would continue to be pursued if available. 

 

President Campbell referenced the Governor’s plan to reduce energy use by 20% by the year 2020.  He questioned whether this project would yield offsets toward this goal.  Mr. Bishop replied that this would reduce our energy footprint.  He added that staff was in the process of preparing an Energy Efficiency Master Plan.  In addition, the District was participating in an Awwa  Research Foundation (AwwaRF) study to determine the District’s footprint and establish a national standard.

 

Mr. Bledsoe reported that the fifth change was the LV Reservoir Expansion Project (LVE).  The 2009 CIP included $7.7 million of expenditures in FY09 and FY10 for LVE planning.  The proposed FY09/FY10 budget decreases the CIP estimate to $6.7 million to reflect current state and federal funding levels.  He advised that additional LVE planning efforts would be proposed for completion as funding became available. 

 

Mr. Bledsoe identified other budget assumptions as: continued commitment to cost containment, the District reorganization, the CCWD/Brentwood Water Treatment Plant, and acceleration of the AIP, which will be funded by commercial paper. 

 

Mr. Bledsoe reported that the budget excludes two projects in the 2009 CIP with uncertain funding.  One of the projects was the Clayton Regency Pipeline Project, for $4 million.  The second project was $.3 million for the Rock Slough Flood Improvements Project. 

 

Mr. Bledsoe reiterated that the FY09/FY10 budget would be presented for review at the May 14 Board meeting.   The budget would be presented for consideration of adoption at the June 4 Board meeting. 

 

President Campbell asked if there were any comments concerning the presentation. 

 

Responding to a question from Director Burgh concerning the ultimate security for commercial paper, Mr. Bledsoe advised that a line of credit issued by a bank provides a guarantee to investors that the District has sufficient funds to payoff the commercial paper upon maturity.   Without the line of credit, the commercial paper is not marketable to investors, except at very high interest rates.  The line of credit protection allows the District to issue commercial paper at a low interest rate and keep overall financing costs to a minimum. 

 

Director Burgh commented positively on the District’s capital investments and productivity.  He complimented staff on the foresight used in preparing the budget document. 

 

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

 

President Campbell acknowledged that staff had put a lot of effort into the budget document. 

 

REPORTS FOR DISCUSSION

 

9.         Committee Report(s)

            a.   Board of Supervisors’ – Transportation, Water and Infrastructure Post-Meeting Report (4/21/08)

 

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

           

10.        Schedule Future Meeting Dates and Times

 

Mr. Bishop reminded the Board of the Association of California Water Agencies (ACWA) 2008 Spring Conference being held in Monterey, May 6-9. 

 

REPORTS

 

11.        General Manager

 

Mr. Bishop thanked the Board for allowing him to achieve the accomplishments which led to his receiving the “2008 Distinguished Alumnus Award” from the Duke School of Engineering. 

 

12.        Legal Counsel

 

Mr. Maddow did not have a report.

 

13.        Board Members

 

Vice President Anello reported that she would be attending the Mayors’ Conference on May 1 in Moraga.  She also advised that she would be attending the ACWA 2008 Spring Conference May 6-9 in Monterey and the Retirement Committee meeting on May 16.

 

Director Wandry did not have a report.

 

Director Burgh thanked Principal Engineer Jeff Quimby and District staff for their assistance with the Bay Area Water Forum tour, which took place on April 28.  The Old River Intake, fish screens, and the benefits of the Los Vaqueros Reservoir were highlighted during the tour.  He commented that it was very effectively presented and very much appreciated by the audience.  

 

President Campbell reported that he attended the Contra Costa Special District’s Association (CCSDA) meeting on April 21.  The CCSDA Representative to the Local Agency Formation Commission (LAFCO) election took place following the meeting; he advised that Mr. David Piepho was selected.     

 

He complimented Director of Construction Dan Owre on the Iron Horse Corridor Main Replacement Project in Walnut Creek.    

 

CLOSED SESSION

 

14.        Real Property Transaction as allowed under Government Code Section 54656.8; Property: Water Supply Contract:  Negotiating Party:  Golden State Water Company; District Negotiator:  Walter J. Bishop, General Manager; Issue:  Instruct Negotiator on Terms and Price.  

 

At 7:02 p.m., President Campbell announced that the Board would move into closed session.  There was one matter involving Real Property and the additional attendee would be the Assistant General Manager of Planning/Operations and Maintenance Jerry Brown. 

 

RECONVENE FROM CLOSED SESSION

 

At 7:25 p.m., President Campbell reconvened the meeting and announced that the Board did not take any action on the matter before it. 

 

ADJOURNMENT

 

At 7:26 p.m., President Campbell adjourned the meeting to an adjourned regular meeting of the Board of Directors scheduled for May 14, 2008 commencing at 6:30 p.m.

 

 

 

 

                                                                                                                                                        

                                                                                                Joseph L. Campbell, President

ATTEST:

 

                                               

Sharon L. Burris

District Secretary