CONTRA COSTA WATER
DISTRICT
BOARD OF DIRECTORS
ADJOURNED REGULAR MEETING
May 14,
2008
REVISED
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
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
Director of Operations and Maintenance Pete
Schoemann led the Pledge of Allegiance.
ADOPTION OF AGENDA
Mr. Bishop reported that there were no changes to the
agenda.
PUBLIC
COMENT
President Campbell recognized Bird Morningstar,
a Concord
resident, in the audience and invited him to the podium.
Mr. Morningstar addressed the Board and
referenced landscaping classes that he recently attended. Where there were several speakers and
presentations addressing water management.
He commended Water Conservation Supervisor Chris Dundon on his presentation
and the CD-ROM “Water-Wise Gardening” provided by the District. He advised that all comments were positive
concerning the CD and the District’s approach to conservation.
President Campbell and the other Boardmembers
thanked Mr. Morningstar for his comments.
President Campbell asked if there were any
other public comments. There were
none.
CONSENT
1. Approve
Directors’ Services/Business and Travel Expenses
a. Future
Services – May
2. Approve the warrant register dated May
15, 2008.
3. Adopt Resolution No. 08-10 approving
and authorizing execution of the Other Post Employment Benefits Plan Trust
Agreement, Investment and Asset Allocation Policy Statements and directing
implementation of the Trust Agreement and Policy Statements.
4. Funding Agreement with the State of California for the East Contra
Costa County
Integrated Regional Water Management Project
a. Adopt Resolution No. 08-11 authorizing
execution of a Funding Agreement with the State of California and designating a representative
to sign the agreement, and any amendments thereto, for the East Contra Costa
County Integrated Regional Water Management (IRWM) Project;
b. Authorize the Grant Agreement with the State
of California for the East Contra
Costa County
IRWM Implementation Grant; and
c. Authorize the Subgrantee Agreements with the East Contra
Costa County
water management agencies participating in the East Contra Costa County
IRWM.
5. Adopt Resolution No. 08-12 authorizing
the execution of one quitclaim deed of easements to San Francisco Bay Area
Rapid Transit District to relinquish easement rights no longer required by the
District.
6. Authorize execution of a third
amendment to the Cost Reimbursement and Access Agreement with Reclamation
District No. 800 in the amount of $50,000 for a revised total amount not to
exceed $75,000.
7. Authorize execution of an amendment in
the amount of $10,500 to the contract with Wiley, Price & Radulovich for
employment and labor law special counsel services for a revised total amount
not to exceed $130,500.
MOTION: Boatmun/Burgh to
approve the consent calendar. The motion
carried by a unanimous voice vote.
DISCUSSION AND INFORMATION
8. Review and provide feedback on the proposed
FY09/FY10 budget.
President Campbell commented on the easel that had been
placed in the Board Room with the words “Issue Bin.” He explained the history
of the “Issue Bin” and reported that the Board could use this method for
documenting items of concern as the budget presentations were given.
Mr. Bishop reminded the Board that the key budget
assumptions were presented at the Board meeting on April 30. He reported that individual department
budgets would be presented at this meeting.
The budget was consistent with the District’s financial policies and reserve
and rate policy. Staff had worked diligently
to bring in an operating budget that increased only 2% per year for each of the
next two years. The total budget
increased 4% the first year; however, it incorporated costs for the Brentwood Water
Treatment Plant (WTP). He noted that if the
Brentwood WTP costs were removed the net first year increase was 2%.
He reported that Director of Finance Brice Bledsoe would
begin the presentations with the budget overview, and each department would be
presenting their respective budgets.
Mr. Bledsoe gave an overview of the FY09/FY10 budget. The overview consisted of the key messages
and a summary of the significant operating and capital expenditures.
Mr. Bledsoe identified the key messages as:
·
The FY09/FY10 budget of $385.6 million was consistent with
the 2009 Capital Improvement Program (CIP) and the budget assumptions approved
by the Board on April 30, 2008.
·
The budget incorporates $5.4 million in projected FY08
financial plan benefits and expanded use of commercial paper producing $3.4
million financial plan benefits over the next two years.
·
The proposed budget reflected operations for the Brentwood
WTP and acceleration of critical infrastructure improvements – Canal
Replacement Project, Alternative Intake Project (AIP), Los Vaqueros (LV) Energy
Recovery Project.
President Campbell thanked Mr. Bledsoe for providing this information.
Referencing the use of commercial paper, Mr. Bishop
explained that the commercial paper would be retired at the end of each fiscal
year with the exception of the portion financing the AIP.
Mr. Bledsoe reported that the proposed FY09 District budget
of approximately $198 million reflected a $7.6 million increase relative to the
FY08 budget. The two components
responsible for the increase were the Brentwood WTP and the construction of the
AIP. The proposed FY10 budget was $11
million lower than FY09. This was due to
construction of the AIP nearing completion in FY10. The proposed budget met all of the operation
and infrastructure construction requirements.
Mr. Bledsoe reviewed the District’s FY09 operating
budget. He reported that the proposed FY09
operating budget of $67.4 million reflected an increase of $2.8 million (4%)
relative to FY08. The Brentwood WTP was
associated with $1.6 million (2.5%).
Salaries and benefits were proposed to increase 4%, with 2% of the
increase related to the Brentwood WTP. The
increase for purchased goods was proposed to be 17%; the increase in this
category related to the Brentwood WTP was 7%.
The remainder of the increase was related to the increased chemical
costs. He reported that services were
proposed to increase by 8%; 2% of the increase was related to the Brentwood WTP
and expenditures for an anticipated election for three Board divisions were
proposed at a 3% increase.
Responding to a question from Director Wandry concerning
gasoline prices and if the budget increases were sufficient, Mr. Bledsoe
replied that increases were reflected in the fuel budget for both FY09 and FY10
and were included in the purchased goods category. Mr. Bishop advised that this would be an area
where the operating contingency could be used, if necessary.
Mr. Bledsoe reviewed the operating budget for FY10. The budget was proposed to increase $1.4
million (2%) over FY09. Salaries and
benefits were projected to increase by 3%.
This increase was related to Cost of Living Allowances (COLAs), step
increases and health insurance.
Purchased goods were projected to increase 2%. Mr. Bledsoe explained that the increase was
estimated to be 5%. However, the
District had conserved in materials and equipment expenditures reflecting an
overall 2% increase in the category. The
Other category reflected a proposed increase of 4%, which was attributable to an
anticipated increase in purchased water costs.
Mr. Bledsoe reviewed the FY09 capital budget and reported
that it was proposed to increase by $4.7 million over FY08. The major component was the AIP, with an
estimated cost of $48.4 million in expenditures. This was partially offset by completed or
near-completed projects in FY08 totaling $32.4 million. Projects in this category included the
Bollman/Randall-Bold WTP Improvements, the Midhill II Reservoir, Seminary
Reservoir and the Brentwood WTP. He
advised that an estimated $5.9 million in rebudgets were not included in these
proposed amounts and would be included in the presentation at the June 4 Board
meeting.
Mr. Bledsoe reviewed the proposed FY10 capital budget and
advised that it would decrease by $15 million (18%) as compared to FY09. He attributed the decrease to the near
completion of the AIP.
Mr. Bledsoe reviewed the sources of funding supporting the
proposed expenditures. He reported that
water sales accounted for over 50% of funding sources. The amount was based on consumption estimates
and rate increases reflected in the 2009 CIP.
Other operating revenue increased during FY09 and FY10, primarily due to
reimbursement of operating costs from the City of Brentwood for the Brentwood WTP. Capital revenue for FY09 and FY10 totaled
approximately $29.6 million from outside funding. The District was continuing to pursue
additional Federal and State funding for other projects included in the capital
budget. Commercial paper funding related
to the Brentwood WTP would be reimbursed by the City of Brentwood upon completion of construction. Addressing the negative reserve charges for
FY09 and FY10, Mr. Bledsoe explained that this was a temporary cash flow caused
by the use of commercial paper to fund what would have been funded by
revenue-funded projects. He explained
how the use of commercial paper would positively impact reserves.
President Campbell referenced a table regarding sources of
funding on page 6 of the budget transmittal letter and requested a small,
card-sized copy of the table.
Mr. Bledsoe reviewed the contingency budget. He highlighted the energy and drought
contingency and stated that the item was added in FY08 during the mid-year
budget review. He advised that $300,000,
of the $1 million budget, had been used for energy costs. He also advised that there was no budget for
this item in FY09 or FY10 due to sufficient amounts for energy being included
in the line item of the budget.
Mr. Bledsoe advised that the FY09/FY10 budget would be
agendized for the June 4 Board meeting for consideration of adoption.
President Campbell asked if there were any questions for
the presenter. There were none.
Director Wandry asked the General Manager how the decline
in building permit fees and facility reserve charges (FRC) were affecting the
District revenue. Mr. Bishop responded
that a large portion of the FRCs were not included in the capital or operating
budget.
Mr. Bledsoe introduced Executive Management Analyst Desiree
Castello who presented the budgets for Board of Directors and General Management
Departments.
Board of
Directors
Ms. Castello reviewed the proposed budget for the Board of
Directors. She reported that the budget
included expenditures for the five Boardmembers and the District
Secretary. The proposed FY09 budget of
$644,062 increased by $362,000 from FY08.
This increase was related to the anticipated election costs in 2008 for
Divisions 3, 4, and 5. The proposed FY10
budget reflected a decrease of $342,000 due to no anticipated election during
that year. The proposed budget consisted
entirely of operating expenditures. She
reviewed the categories for the department’s budget.
President Campbell asked if there were any questions for
the presenter. There were no questions.
General
Management
Ms. Castello reviewed the General Management budget and
reported that there were nine full-time employees in FY08. The proposed budget for FY09 still maintained
nine full-time positions, with one significant change. The Board had authorized a fourth Assistant
General Manager position in 2007 and the budget reflected the elimination an
unfilled Executive Secretary position.
Ms. Castello reviewed the significant milestones and
identified them as assuming leadership roles in water and professional
organizations; actively participating in ongoing Delta planning initiatives, continuing succession planning, leadership
development, team building, and decision-making skills through effective delegation,
coaching and training; and obtaining state funding for the AIP and substantial
completion of the construction of this project in FY10.
Comparing the proposed FY09 budget of $2,675,685 to the
FY08 budget, Ms. Castello reported that there was an increase of approximately
$225,000 (9%). The increase was related to staff
reorganization and COLAs. The FY10
proposed budget reflected an increase of $83,000 (3%) from FY09 due to
anticipated cost increases. The FY09
operating budget increased by approximately $173,000 (7%) from FY08. The increase was attributed to salary, COLAs,
and benefit increases for the nine full-time positions. Purchased goods decreased by $6,000 (37%) and
services decreased $13,000 (4%). The
proposed FY10 budget increased by $109,000 (4%) from the FY09 budget. The increase was attributed to an increase in
allocated operating labor hours. The
proposed FY09 capital budget reflected an increase of $52,000 (43%) from
FY08. The proposed FY10 budget decreased
by $26,000 (15%) from FY09. This
decrease was based on a reduction in hours allocated to the Los Vaqueros Expansion
(LVE) Project.
President Campbell asked if there were questions for the
presenter. There were no questions.
Ms. Castello introduced Director of Operations and
Maintenance (O&M) Pete Schoemann who presented the O&M budget.
Operations and
Maintenance Department
Mr. Schoemann reported that the O&M Department was the
largest department in the District and consisted of 161 full-time employees. Total full-time employees for FY10 were
proposed to be 162, which allowed for the hiring of one Maintenance Mechanic
position for the AIP.
Mr. Schoemann identified the significant milestones for the
department as maintaining 100% compliance with drinking water monitory and
reporting requirements; increasing maintenance activities with lower down time,
lower overtime and quicker emergency response time; completing the Randall-Bold
WTP Filtration Rate Study by January 2009; reducing PG&E energy costs for
treated water by 5% compared to FY08; and beginning water production at the
City of Brentwood WTP by July 2008.
Comparing the proposed FY09 budget of $37,555,617 to the
FY08 budget, Mr. Schoemann reported that there was an increase of $2,681,370
(8%). The increase was attributed to the
operation of the new Brentwood WTP ($1,613,679 or 5%), salaries and benefits,
variable cost of water treatment chemicals and planned maintenance. The proposed FY10 budget was $1,914,131 (5%)
higher than FY09, which was due to increases in salaries and benefits and
capital projects.
Mr. Schoemann reviewed the proposed FY09/FY10 operating and
capital budgets with the CCWD/City of Brentwood WTP factored
into the calculations as follows:
The proposed FY09 operating budget was approximately
$2,938,371 (9%) higher than FY08. The
increase was due to salary and benefit costs of $1,321,486 (8%). The cost associated with the Brentwood WTP was
(5%). He advised that the District would
share staff with the Randall-Bold WTP, which offset approximately $360,000. This would be rate-funded at Randall-Bold but
reimbursed by the City of Brentwood. Purchased goods increased by $942,603 (21%)
predominately driven by increases in treatment chemical costs (19%) and
materials and equipment for the Brentwood WTP (2%). Services increased by $471,284 (13%);
Brentwood WTP (4%) and planned maintenance at treated and untreated water
facilities (9%). Other increases
consisted of $202,998 (3%) for City of Brentwood WTP energy and fuel
costs. The proposed FY10 budget was
$1,259,135 (4%) higher than FY09. Salary
and benefits increased by $803,601 (5%) due to COLAs, step increases and the
addition of one new position for the AIP.
Purchased goods increased by $160,427 (3%) for treatment chemicals
costs. Services increased by $83,950
(2%) this was associated with the sanitary survey, required by the California
Department of Public Health. There was
also an increase of $211,157 (3%) for energy costs.
Mr. Schoemann reported that the proposed FY09 capital
budget reflected a decrease of $257,000 (8%) from FY08. This decrease was due to completion of the
Bollman Distributed Control System Upgrade Project and regulatory compliance
for diesel emissions for heavy vehicles. The proposed FY10 budget reflected an
increase of $654,996 (21%) over FY09.
This was attributed to the implementation of the Supervisory Control and
Data Acquisition (SCADA) project and was consistent with the CIP.
President Campbell asked for clarification if this was also
consistent the rate model. Mr. Schoemann
responded that it was.
Mr. Schoemann reviewed the proposed FY09/FY10 operating and
capital budgets net of the City of Brentwood WTP as follows:
The proposed FY09 operating budget increased by $1,324,692
(4%) compared to the FY08 budget. The increase was due to salaries, benefits
and water treatment chemicals. The proposed
FY09 capital budget decreased by $257,001 (8%) lower than FY08. This decrease was attributed to completion of
the Bollman Distribution Control System Upgrade Project and was consistent with
the CIP.
The proposed FY10 operating budget increased by $1,839,192
(5%) compared to FY09. The increase was
attributed to labor, cost of water treatment chemicals, and participation in a
sanitary survey required by the California Department of Public Health. The proposed FY10 capital budget increased by
$654,996 (21%) compared with FY09. The
increase was due to the SCADA Upgrade Project.
Responding to a question from Director Boatmun concerning
the City of Brentwood WTP and the impact of the declining home sales, Mr.
Bishop replied that the down turn in home sales would not affect this project.
President Campbell asked if there were any other
questions. There were no other
questions.
Mr. Schoemann introduced Assistant General Manager of
Planning/Operations and Maintenance Jerry Brown
who presented the Planning Department budget.
Planning
Department Budget
Mr. Brown reported that the Planning Department consisted
of Water Resources, Environmental and Facilities Planning, and Grant
Administration. The department consisted
of 16.5 full-time employees.
Mr. Brown reviewed the significant milestones and
identified them as increasing water supply reliability by 10,000 acre-feet,
consistent with the Future Water Supply Plan; completing the Energy Demand
Reduction Plan; completing technical and modeling work in support of the LV
Reservoir Expansion (LVE) Environmental Impact Report/Environment Impact Study
(EIR/EIS); ensuring that the District’s Emergency/Immediate Actions were
included in the Delta Vision Strategic Plan, the Bay Delta Conservation Plan
and the State Water Resources Control Board plans; and acquiring $5 million per
year in grants.
Mr. Brown advised that the proposed FY09 budget of
$3,672,794 decreased by $114,000 (3%) from the FY08 budget. The decrease was attributed to the District reorganization
and increased support for LVE (funded by State and Federal agencies). The proposed FY10 budget was approximately
$594,000 (16%) lower than FY09 due to completion of projects in FY09.
Mr. Brown reported that the proposed FY09 operating budget
reflected a decrease of $168,000 (7%) from FY08. The decrease was attributed to salaries and
benefits and the shift to support the LVE Project. The proposed FY10 budget reflected a decrease
of $289,000 (12%) from FY09. This was
also attributable to salaries and benefits and an increase in hours allocated for
operating projects. Services reflected a
decrease of 42% reflecting completion of the Advanced Treatment Project.
The proposed FY09 capital budget increase of $54,000 (4%)
from FY08 was due to an increase in labor in support for the LVE Project. The Other category reflected a decrease in
the purchased water budget due to a decline in development. The proposed FY10 budget reflected a decrease
of approximately $305,000 (23%) from FY09.
The decrease was due to the completion of capital projects.
President Campbell asked if there were any questions for
the presenter. There were no
questions.
Mr. Brown introduced Special Projects Manager Margueritte
Naillon who presented the Delta Projects Department budget.
Delta Projects
Budget
Ms. Naillon reported that the Delta Projects Department had
a reduction of two full-time employees due to the transition of the AIP to the
Construction Department.
Ms. Naillon reviewed the significant milestones and advised
that they focused on the LVE Project.
She identified the milestones as filing of the water right permit modification
petitions by June 2009; filing the Final EIR/EIS by January 2009 and completion
of the Final Federal Feasibility Report by September 2009; and managing ongoing
contracts with U.S. Bureau of Reclamation and Department of Water Resources to
ensure timely reimbursement of invoices.
Ms. Naillon advised that the budget was based on current
funding. The proposed FY09 budget of
$3.5 million was lower than the FY08 budget by approximately $8 million
(69%). This was due to the AIP
transitioning to the Construction Department.
The LVE requests were revised from the CIP to reflect the current schedule
in the cash flow ($0.6 million). The
proposed FY10 budget was approximately $2.3 million (66%) lower than FY09 due
to the LVE project moving to completion of the planning phase.
Ms. Naillon advised that the Delta Projects budget was
composed of 95% capital and 5% operating.
She reported the proposed FY09 operating budget reflected a decrease of
$69,000 (28%) from FY08. The proposed
FY10 budget reflected a decrease of $8,000 (5%) from FY09. The decreases in FY09 and FY10 were due to
staffing related to the AIP. The proposed FY09 capital budget reflected a
decrease of $7,891,000 (70%) from FY08.
The decrease was attributed to staffing changes and completion of the
planning work. The proposed FY10 budget
reflected a decrease of $2,295,000 (69%) from FY09. The decrease of $2,312,000 was due to the
completion of the planning phase of the LVE.
President Campbell asked if there were any questions for
the presenter. There were no
questions.
Ms. Naillon introduced Project Controls Manager Lars Sandberg who presented the District’s Capital
Projects budget.
Capital Projects
Budget
Mr. Sandberg reported that he would be providing a
District-wide overview of the capital projects for the proposed FY09/FY10
budget. He stated that the proposed
budget funded significant projects and was consistent with the 2009-2018 CIP. He advised that the preliminary estimated
amount for re-budgets was $5.9 million.
Mr. Bishop explained the method for re-budgeting capital
expenditures from one fiscal year to the next and the history behind the
process.
Mr. Sandburg advised that the proposed budget included 42
separate projects. He reviewed 12 of the
major projects and identified them as the AIP, Canal Replacement Project, LVE,
Pipeline Renewal/Replacement, Brentwood WTP, LV Energy Recovery, Treated Water
(TW) Facility Improvements, TW Applicant-funded, Untreated Water Facilities
Improvements, Bollman WTP Improvements, Country Club Pump Station Expansion,
and Revenue Meter Upgrades. The
expenditures for the proposed FY09 budget were approximately $84.9 million and
the proposed expenditures for the FY10 budget was $69.9 million, for a total of
$154 million. Approximately $34 million
(22%) would be funded from outside sources. The AIP and Canal Replacement Project expenses
accounted for 64% of the total budget.
Comparing the proposed FY09/FY10 budget to the 2009-2018
CIP, Mr. Sandberg reported that there was a minimal increase of 0.1%. He reported that projects would be
re-prioritized in the next CIP. Mr.
Sandberg reviewed the FY08 to FY09 preliminary re-budgets and advised that
there were no automatic budget carryovers.
President Campbell asked if there were any questions for
the presenter. There were no questions.
He commended Mr. Sandberg on his value to the District and
thanked him for the presentation.
Mr. Sandberg introduced Engineering Manager Rachel Lenci
who presented the proposed FY09/FY10 Engineering Department budget.
Engineering
Department
Ms. Lenci reported that the Engineering Department had
three main areas of emphasis. The first
area was the technical design and project management of the District’s capital
projects. The second was the developer
design services for new or modified facilities related to developer projects. The third area of emphasis was the general
engineering support to internal District departments. There would be a reduction of one full-time
position for the proposed FY09/FY10 budget due to the vacancy of one
Engineering Technician position, for a total of 25 full-time employees.
Ms. Lenci reviewed the significant milestones and
identified them as the Canal Replacement Phase I design, the Bollman Filter Valve
Replacements and Polymer System Upgrades design, LV Energy Recovery System, and
the Geographic Information System (GIS).
Ms. Lenci reported that the proposed FY09 budget of
$5,879,200 reflected a decrease of approximately $231,000 (4%) from the FY08
budget. The proposed budget reflected
the delivery of projects as planned in the CIP, the completion of the design of
the Canal Replacement Phase I Project, and shifted some design effort from
professional services to in-house staff.
The proposed FY10 budget reflected a decrease of $1,150,000 (20%) from
FY09. The decrease was largely due to
the capital budget as anticipated in the 2009-2018 CIP and the completion of
several FY09 design projects, including the LV Energy Recovery Project.
Ms. Lenci reported that the proposed operating budget for
FY09 reflected an overall increase of $48,000 (4%) from FY08. The increase was attributed to an increase in
labor and the addition of the Project Controls Manager to the Engineering Department. Services decreased by $69,000 due to some of the
dam monitoring responsibilities shifting to in-house staff. An increase of $48,000 (4%) from the FY09
budget was proposed for FY10, which was attributed to COLA and projected step
increases.
Ms. Lenci reviewed the proposed FY09 and FY10 capital
budget. She reported that FY09 reflected
a decrease of $278,000 (6%) compared to the FY08 budget. The decrease was attributed to services,
completion of the design for the Canal Replacement Project Phase I, and inclusion
of the LV Energy Recovery Project. She
advised that purchased goods reflected an increase of $57,000, due to the
purchase of GIS software and printing costs associated with the Canal
Replacement Project. The proposed FY10
budget reflected an overall decrease of $1,200,000 (26%) from FY09. The decrease was attributed to a decrease in
the professional services item, as was anticipated in the CIP.
President Campbell asked if there were any questions for
the presenter. There were no
questions. President Campbell
complimented Ms. Lenci on her first budget presentation.
Ms. Lenci introduced Director of Construction Dan Owre who
presented the Construction Department budget.
Construction
Department
Mr. Owre reported that staffing for the Construction Department
was reduced by two full-time employees due to substantial completion of the
Brentwood WTP. The proposed FY09/FY10
budget totaled 20 full-time employees; six of the positions were project
permanent associated with the construction of the AIP and the Canal Replacement
Project.
Mr. Owre reviewed the significant milestones and identified
them as producing water at the new Brentwood WTP by July 2008; completing
construction of the AIP Setback Levee, pipeline and pump station; completing of
Phase I of the Canal Replacement Project; and initiating construction of the LV
Energy Recovery Project.
Reviewing the proposed FY09 budget, Mr. Owre reported that
the Construction Department budget was $69,486,895. The capital budget increased by 28% compared
to FY08, largely attributable to AIP construction. He advised that $49 million was for the AIP,
$6 million for the Canal Replacement Project, and $14 million for eight other
projects. The proposed FY10 budget of
$57,830,380 included a 17% decrease in construction spending from FY09. He advised that the FY10 budget included $35
million for the AIP and $8 million for the Canal Replacement Project.
Mr. Owre reviewed the FY09 operating budget and reported
that it totaled $373,255. He reported
that labor decreased by 4% due to the reduction in staffing from FY08. Operating services also decreased by 89% from
FY08. The proposed FY10 operating budget
totaled $388,780 which reflected a 5% increase due to salaries, benefits and
COLA increases.
Mr. Owre reported that the Construction Department was
responsible for 80% of the District’s capital budget. The capital budget
totaled $69,113,640. He reported that
capital labor was consistent with FY08.
Purchased goods decreased 50% due to the completion of the Bollman DCS
work in FY08. Services increased by 26% due
to the AIP and the Canal Replacement Project.
The FY10 capital budget was approximately $57,441,600, which reflected a
decrease of 17% from FY09 due to cash flow associated with the AIP and Canal
Replacement Project.
President Campbell asked if there were any questions for
the presenter. There were no
questions.
The Board took a short break at 7:47 p.m.
At 7:53 p.m., President Campbell reconvened the meeting and
advised that Director of Finance Brice Bledsoe would be presenting the Finance
Department budget.
Finance
Department
Mr. Bledsoe reported that Finance Department’s budget had
decreased by one full-time position, with the transition of the Project
Controls Manager to the Engineering Department.
He reported that there were a total of 55 full-time employees allocated
in the proposed FY09/FY10 budget.
Mr. Bledsoe reviewed the significant milestones and
identified them as preparation of the Ten-Year Financial Plan, maintaining
customer satisfaction ratings, managing District telecommunications and
information systems networks, managing water conservation programs, and securing
$150,000 annually in grants for outside funding for water conservation
programs.
Mr. Bledsoe reported that the proposed FY09/FY10 Finance
Department budget totaled $9,474,627 and was $499,000 (5%) lower than
FY08. This was attributed to a reduction
in capital purchases, mainly related to vehicle purchases, completion of
upgrades to the District’s customer billing system, and completion of the
grant-funded low flow toilet direct install program. The proposed FY10 budget would increase
$360,000 (4%) relative to FY09. The
increase was related to labor.
Reviewing the proposed operating budget of $7,437,649 for
FY09, Mr. Bledsoe reported that there was an increase of $85,000 (1%) from
FY08. There was no net increase in labor
costs as the transfer of the Project Controls Manager to Engineering offset
COLA, step increases and benefits.
Services increased by 11%, which was attributed to software support and
licensing agreements. The proposed FY10
budget reflected an increase of $304,000 (4%).
The increase was due to salaries, benefits, COLAs, step increases, and
an increase in services for the new GIS.
Mr. Bledsoe reviewed the proposed FY09 capital budget and
reported that it was approximately $584,000 (22%) lower than FY08. He advised that salaries and benefits had increased
by 23%, due to information systems support of capital projects. Purchased goods had decreased by 10% due to a
reduction in vehicle purchases. Services
decreased by 78% due to completion of customer billing system and grant-funded
toilet direct install program. The proposed
FY10 capital budget increased by $57,000 (3%) relative to FY09. This was attributed to purchased goods, which
increased by 3% for planned increases in computer replacements. The other category increased by 4% for
conservation incentives.
President Campbell asked if there were any questions for
the presenter. There were no
questions.
Mr. Bledsoe introduced Manager of Human Resources and Risk
Division Elia Bamberger.
Human Resources
and Risk Division
Ms. Bamberger reported that the Human Resources and Risk
Division’s nine full-time employees provided programs and services in support
of the District operations including benefits administration, recruitment, risk
management, safety, labor relations and organizational training. The division
was also responsible for managing the District’s clerical temporary employee
pool and the Welfare to Work Program.
The part-time staffing associated with those two programs equated to two
full-time positions, for a total of 11 employees.
Ms. Bamberger reviewed and identified the significant
milestones as reducing incidents of workplace injuries below the district’s
five-year moving average, successfully completing negotiation processes, and offering 160
training slots through the District’s organization training program.
Ms. Bamberger reported that the proposed FY09 budget of
$2,443,775 decreased by $95,000 (4%) from the FY08 budget. This was primarily related to the impact of
favorable insurance market conditions and lower labor costs. The proposed FY10 budget increased by $78,000
(3%) over the FY09 budget. This was
related to anticipate increases in labor, materials and services. The proposed operating budget for FY09
decreased by $95,000 (4%) from FY08.
This decrease was attributed to lower labor costs due to two recent hires
at lower starting salaries. She advised
that purchased good reflected the purchase of key safety equipment for the
Brentwood WTP. The services line item
reflected lower insurance premium costs.
The proposed FY10 budget increased by $78,000 (3%) over the proposed
FY09 budget. The increase reflected
anticipated adjustments for labor, materials and services.
President Campbell asked if there were any questions for
the presenter. There were no questions.
Ms. Bamberger introduced Director of Public Affairs Patty
Friesen.
Public Affairs
Ms. Friesen reported that the Public Affairs Department
consisted of six full-time employees.
She reviewed the significant milestones and identified them as conducting
a Legislative Affairs Program that secures funds for District water quality
projects, ensuring a Public Information Program that communicates the
District’s critical issues, and expanding the District’s Water Education
Program to educate students.
Reviewing the proposed FY09 budget of $1,302,348, Ms.
Friesen reported that it reflected a 2% increase from the FY08 budget. A review of the proposed FY10 budget
reflected a 4% increase from the FY09 budget.
Ms. Friesen advised that the proposed FY09 operating budget
included the 2% increase for adjusted benefits, step increases and COLA, as
well as inflationary increases in postage and printing costs. The proposed FY10 budget reflected a 4%
increase due primarily to labor costs.
Ms. Friesen reported that the proposed FY09 capital budget
reflected 20% of one Public Information Specialist as liaison to coordinate
construction community relations. The
FY09 budget reflected an increase of 6% based on an increase in construction
project requirements. The proposed FY10
budget reflected a 4% increase due to COLA and adjusted benefits.
President Campbell asked if there were any questions for
the presenter.
Responding to a comment and question from Director Boatmun
concerning the popularity and possibility of increasing the public outreach bus
tours, Mr. Bishop responded that the intent was to ensure that there were full
bus tours and that there was not a waiting list at the present time.
Ms. Friesen introduced Assistant General Manager of
Administration Kurt Ladensack who presented the Watershed and Lands budget.
Watershed and
Lands
Mr. Ladensack reported that the staffing consisted of 19.5
full-time employees and remained unchanged for FY09/FY10. Mr. Ladensack announced that Peter Colby, the Watershed and Lands Manager
replacing Bill Chilson, would be starting with the District on May 19.
Mr. Ladensack reviewed the significant milestones and
identified them as developing and implementing a marketing strategy to increase
revenues at LV, growing revenue annually through improved utilization of
District-owned property, and actively applying for grants and other revenues to
offset District costs.
A review of the proposed FY09 budget of $4,291,558 reflected
an increase of $84,000 (2%) compared to FY08.
He advised that the increase was less than the assumed rate of inflation
and reflected maturation of the programs and achievement of operational
efficiencies. The proposed FY10 budget
reflected an increase of $127,000 (3%) compared to FY09. This increase was reflective of increased
labor and benefit costs.
Mr. Ladensack reviewed the proposed FY09 operating budget of
$3,676,278 and reported that there was an increase of $57,000 (2%) compared to
FY08. The increase was attributable to Reclamation
District 2040 assessments of AIP real property.
The proposed FY10 budget increased by $113,000 (3%) compared to
FY09. This increase was attributed to
labor. The other expenditure categories
remained unchanged compared to FY09. The
proposed FY09 capital budget increased in FY09 by $26,000 (4%) compared to
FY08. The increase was due to real property
staff support for the AIP, Canal Replacement and LVE. The proposed FY10 capital budget reflected an
increase of $15,000 (2%) compared to FY09.
The increase was attributed to salaries, benefits, completion of the
AIP, and continued support for the Canal Replacement Project and LVE.
President Campbell asked if there were any questions for
the presenter. There were no
questions.
Mr. Bishop advised that Mr. Ladensack would also be
presenting the General District Activities budget.
General District
Activities
Mr. Ladensack reported that this budget reflected items
that were not attributable to a specific department, including District-wide
general legal services, purchased water costs, and expenses related to
retirement consulting and investment management fees.
Mr. Ladensack reported that the proposed FY09 overall
budget reflected a decrease of $24,490. He
advised that the budget reflected an $800,000 decrease in purchased water costs
resulting from the Central Valley Project Municipal and Industrial (M&I) deficit
settlement. This was offset by increases
in the services category. The proposed
FY09 capital budget reflected a $455,000 increase reflecting the re-allocation
of legal services, which were formerly budgeted in Delta Projects. The total proposed FY10 budget reflected a
decrease of $91,063 (1%) from the FY09 budget.
The decrease was due to the reduction in legal services required in
support of the planning phase for the LVE Project.
Mr. Ladensack advised that the proposed FY09 operating
budget of $10,784,992 decreased by $479,490 (4%) from FY08. Services increased by approximately $224,000
(7%), with the largest portion of the increase attributed to the anticipated
increase in retiree health insurance premiums. The other category showed the decrease
of $800,000 in purchased water, which was partially offset by $200,000 increase
in commercial paper fees. The proposed
FY10 budget reflected an increase of $108,937 (1%) from the FY09 budget. He reported that this was due to an anticipated
increase in retiree health insurance premiums and retiree management fees. The category was also offset by the
elimination of a workers’ compensation large deductible reserve
contribution.
Mr. Ladensack reviewed the proposed FY09 capital budget of
$560,000 and advised that there was an increase of $455,000 (433%) from the
FY08 budget. The increase was due to
legal services in support of the LVE Project ($375,000), which was previously
budgeted in Delta Projects. The FY10
proposed budget reflected a decrease of $200,000 (36%) from FY09 attributed to a
reduction in legal services.
President Campbell asked if there were any questions for
the presenter. There were no
questions.
Mr. Bishop commented positively on the District’s new
leadership and acknowledged staff for the quality of the budget document. He also commented on the diversification of
revenues and the business plan for the District.
President Campbell commented positively on the quality of
the presentations and the presenters. He
advised that the Board had been kept informed on the projects included in the
budget and the budget process. He asked
for comments from the Boardmembers.
Director Wandry commented that the budget document was
easily understood and congratulated staff who worked on the document. He reiterated President Campbell’s comment
concerning how the Board had been kept informed on the various projects
throughout the year. He thanked staff
for a job well done.
Director Boatmun expressed her appreciation for the way the
budget was presented.
Director Burgh echoed comments from the other Boardmembers on
the presentations and clarity of the budget document. He commented that this fiscal year would be
finished with a positive balance, which allowed rates to be kept competitive. He thanked staff for the work put into the
document.
Vice President Anello commented positively on the
presentations and thanked the presenters.
President Campbell asked if there were any public comments. There were no comments.
It was the consensus of the Board to agendize the FY09/FY10
Budget for the June 4 Board meeting for consideration of adoption.
REPORTS FOR DISCUSSION
9. Committee Report(s)
a. Bay
Area Water Forum Post-Meeting Report – (4/28/08)
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 that a Study Session would be held on June 12, at
8:15 a.m. He also advised that the
Federal and State Legislative Lobbyists would be making presentations at the
Study Session.
Director
Boatmun reported that she was planning to attend the Industrial Association
meeting concerning emergency responses on June 4. President Campbell directed the District
Secretary to include the date on the Board calendar for the June 4 Board
meeting for consideration.
REPORTS
11. General
Manager
Mr. Bishop reported briefly on regional water conservation
strategies. He advised that there would
be a presentation at the June 4 Board meeting outlining the District’s approach
to disseminating water conservation information.
Mr. Bishop also reported briefly on the Governor’s May
Revise budget and the possible funding for District projects.
12. Legal
Counsel
Mr. Maddow did not have a report.
13. Board Members
Director
Boatmun commented positively on the Catch A Special Thrill (C.A.S.T.) program
held at Los Vaqueros on May 3. She reported
that she attended a session at the Association of California Water Agencies
(ACWA) 2008 Spring Conference, May 6-9, in Monterey concerning quagga mussels
and expressed concern about the mussels invading Contra Loma Reservoir. Referencing water conservation, Director
Boatmun opined that it might be helpful to have notices in restaurants and
hotels concerning conservation. She
commented on Judge Oliver Wanger’s decision and a presentation from John Herrick
from the South Delta Water Agency.
Director
Boatmun reported on the California Special Districts Association Legislative
Day she attended on May 12 in Sacramento.
She provided information received from Marianne O’Malley from the State
Legislative Analyst’s Office, concerning the state/local fiscal relationships.
Vice
President Anello reported that she would be attending the Retirement Committee
meeting on May 16.
Director
Wandry reported that he attended the ACWA 2008 Spring Conference, May 6-9, in
Monterey. He also reported that he attended
ethics training while at the conference.
He opined that legislation should be changed to mandate ethics and
sexual harassment prevention training for elected officials every four years
instead of every two years to coincide with terms of office. He
suggested that the District ask our Legislators to introduce such legislation.
Director
Burgh did not have a report.
President
Campbell reported that he also attended ethics training at the ACWA 2008 Spring
Conference. He agreed with Director
Wandry’s comments concerning mandating ethics and sexual harassment prevention training
once a term instead of every two years.
Director
Boatmun presented a small token of appreciation, from the Board, to Mr. Bishop
for receiving the 2008 Distinguished Alumnus Award from the Duke School of
Engineering.
CLOSED SESSION
14. Conference with Legal Counsel –
Anticipated Litigation under Government Code 54956.9(b) – one case.
15. Public
Employee Performance Evaluation as allowed under Government Code 54957
Title:
General Manager
16. Conference
with Labor Negotiator as allowed under Government Code 54957.6; Agency
Negotiator: Board President;
Employee: General Manager
At 8:45 p.m., President Campbell announced
that the Board would move into closed session. There were
three matters before the Board. The
first matter concerned litigation and did not require the announcement of
additional attendees. The second matter
concerned labor negotiations and the additional attendees would be Kurt Ladensack, Assistant General Manager of
Administration and Elia Bamberger, Human Resources and Risk Manager.
RECONVENE FROM CLOSED
SESSION
17. Report
on closed session.
At 9:12 p.m.,
President Campbell reconvened the meeting and announced that the Board did not
take any action on the matters before it.
ADJOURNMENT
At 9:13 p.m., President Campbell adjourned the
meeting to the next regular meeting of the Board of Directors scheduled for
June 4, 2008, commencing at 6:30 p.m.
Joseph
L. Campbell, President
ATTEST:
Sharon L. Burris
District Secretary
