Contra Costa Water District

CONTRA COSTA WATER DISTRICT

BOARD OF DIRECTORS

REGULAR MEETING

June 4, 2008

MINUTES

CALL TO ORDER

President Campbell called to order a regular meeting of the Board of Directors of the Contra Costa Water District at 6:30 p.m., at 1331 Concord Avenue, Concord, the regular meeting place of the Board.

ROLL CALL

Directors Present: Joseph L. Campbell, President

Elizabeth R. Anello, Vice President

Bette Boatmun

John A. Burgh

Karl L. Wandry

General Manager: Walter J. Bishop

Legal Counsel: Robert B. Maddow

District Secretary: Sharon L. Burris

PLEDGE OF ALLEGIANCE

Watershed and Lands Manager Peter Colby led the Pledge of Allegiance.

ADOPTION OF AGENDA

Mr. Bishop reported that there were minor changes to Agenda Item No. 1.a. – Future Services and Agenda Item No. 1.b. – Expense Reports.

PUBLIC COMENT

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

CONSENT

1. Approve Directors’ Services/Business and Travel Expenses

a. Future Services – June

b. Expenses – May

c. Compensation – May

2. Approve the minutes of April 16, 2008.

3. Approve the warrant register dated June 5, 2008.

4. Authorize an amendment in the amount of $100,000 to the contract with Duane Morris, LLP for legal services, for a revised total amount not to exceed $150,000.

~~5. Adopt Resolution No. 08-13 authorizing amendment of the Trust Agreement establishing the Retirement Plan of Contra Costa Water District by: 1) Rescinding Amendment~~

~~No. 12, originally authorized pursuant to Resolution No. 07-20; and 2) Authorizing Amendment No. 14.~~

Director Boatmun requested that Agenda Item No. 5 be removed from the consent calendar. She also advised that she would abstain from voting on Agenda Item No. 2 – Minutes.

MOTION: Wandry/Burgh to approve the consent calendar with the exception of Agenda Item No. 5. The motion carried by the following vote: Ayes: Wandry, Burgh, Anello and Campbell. Abstain: Boatmun

5. Adopt Resolution No. 08-13 authorizing amendment of the Trust Agreement establishing the Retirement Plan of Contra Costa Water District by: 1) Rescinding Amendment

No. 12, originally authorized pursuant to Resolution No. 07-20; and 2) Authorizing Amendment No. 14.

Director Boatmun asked for clarification on Article IV, Paragraph 1 – Contributions and Article XXVII – Purchase of Service Credit. Mr. Bishop clarified that the text shown in strikethrough font indicated wording was being removed from the document and the underlined text indicated wording had been added to the document. Referencing the total number of years that could be purchased from previous, qualifying public service, Mr. Bishop clarified that this amendment would allow for ten years of buy-back service credit instead of five years. Director Boatmun asked if there would be a cost to the District. Mr. Bishop responded that there would not be a cost to the District.

MOTION: Boatmun/Wandry to adopt Resolution No. 08-13 authorizing amendment of the Trust Agreement establishing the Retirement Plan of Contra Costa Water District by: 1) Rescinding Amendment No. 12, originally authorized pursuant to Resolution No. 07-20; and 2) Authorizing Amendment No. 14. The motion carried by a unanimous voice vote.

ACTION

6. Adopt Resolution No. 08-14 approving the FY09/FY10 budget totaling $390,583,618 including capital budget rebudget requests of $4,962,300 from FY08.

President Campbell advised that this was a two-year budget covering FY09/FY10. He reported that the Board had previously reviewed the budget on May 14.

Mr. Bishop reported that the FY09/FY10 budget was consistent with the Board’s review on May 14, with the exception of the re-budgets. The document was consistent with the Ten-Year Financial Plan, the Board policies on rates and reserves, and assumed a 4% inflation factor. The largest component in the FY09 operating budget was the startup of the Brentwood Water Treatment Plant (WTP), which would be fully reimbursed by the City of Brentwood. The budget would be below the rate of inflation if the Brentwood WTP were removed from the totals. The capital budget was consistent with the 2008-2019 Capital Improvement Program (CIP).

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

President Campbell commented he was pleased with the document and complimented staff for a job well done.

Director Boatmun commented that the document had been reviewed several times.

Director Burgh commended staff for a well organized, clear budget. He commented positively on the timely responsiveness in answering questions when the document was reviewed. The clarity and transparency of the budget was clear.

Director Wandry thanked staff for a job well done.

MOTION: Boatmun/Anello to adopt Resolution No. 08-14 approving the FY09/FY10 budget totaling $390,583,618 including capital budget rebudget requests of $4,962,300 from FY08. The motion carried by a unanimous voice vote.

7. Authorize execution of a contract with Proven Management, Inc. for construction of the canal intake and pump station for the Alternative Intake Project in the amount of $30,395,394, with a 5% change order authority of $1,519,769, for a total amount not to exceed $31,915,163.

President Campbell acknowledged and welcomed representatives from Proven Management, Inc. in the audience. He commented on the environmental documentation that had been secured and the length of time that the District had been working on the project.

Mr. Bishop reported that the project involved building a new intake on the Victoria Canal. The intake would improve the quality of water delivered to the District’s untreated and treated water customers. There were nine bidders for the project, with Proven Management, Inc. submitting the apparent lowest responsive bid. This contract was the second of three separate District construction contracts for the project. The first contract for the setback levee was awarded by the Board on February 20. The third contract for construction of the conveyance pipeline was scheduled for Board consideration in July. He advised that engineering staff was available to answer any questions.

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

Director Burgh extended his thanks to staff involved in this important project. He commented on the number and quality of bids received and quality and thoroughness of the design of the project.

MOTION: Boatmun/Anello to authorize execution of a contract with Proven Management, Inc. for construction of the canal intake and pump station for the Alternative Intake Project in the amount of $30,395,394, with a 5% change order authority of $1,519,769, for a total amount not to exceed $31,915,163. The motion carried by a unanimous voice vote.

DISCUSSION AND INFORMATION

8. Review and comment on the Water Supply Outlook and Conservation Communications Plan.

Referencing the docket, President Campbell advised that California had experienced two consecutive dry years, with precipitation and snow pack levels below normal. He noted that the District’s supply allocation from the Central Valley Project (CVP) along with existing supplemental supplies would be sufficient to meet demands this year without requiring mandatory rationing.

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

Ms. Friesen reported that 2008 is a critically dry year and also the second consecutive dry year. Governor Schwarzenegger had announced a statewide drought earlier in the day. CVP allocations had been reduced for all contractors, including the District. The District had activated water transfer agreements to meet customer demands for 2008. Future rationings could be a possibility beginning January 2009 if CVP announced further reduction in water supplies.

Ms. Friesen reviewed some of the potential impacts of a reduced CVP allocation. Potential impacts included initiating an increase in reliance on supplemental or alternative water supplies; reducing pumping in the Delta, which would cause deterioration of water quality; and an increase in the use of Los Vaqueros Reservoir water supply.

Mr. Bishop commented on the Alternative Intake Project and how it will benefit the District under these conditions.

Ms. Friesen reported that blending with Los Vaqueros (LV) Reservoir water could begin as early as July 2008 and continue through the winter. Refilling of the reservoir in 2009 would depend on the winter rains. She advised that, if conditions remain dry, mandatory rationing may need to be considered by January 2009. Referencing a graph, Ms. Friesen noted that under these conditions, blending would continue into January and LV Reservoir would be below the historic lowest level of 59,000 acre feet, which occurred in December 2002.

Ms. Friesen noted three key messages for the District’s Conservation Communications Plan. She advised that the Governor had declared a statewide drought and the District supported that declaration. Customers would be encouraged to renew their conservation efforts and ensure they were using water efficiently. Mandatory rationing would depend on rainfall in the early winter, CVP allocations and success of the voluntary conservation program this year.

Ms. Friesen reviewed the Conservation Communications Plan outreach tools. She identified the tools as conservation packets for District wholesalers, meetings to ensure consistent messages in the District service area, the CCWD website, the On Tap customer newsletter and bill inserts, the Regional Water conservation campaign, Boardmember and staff speakers’ bureau presentations, the Water Education Program, conservation programs and incentives. The conservation programs and incentives included conservation surveys; rebates including high-efficiency toilets, high-efficiency clothes washers, smart sprinkler-timers; and commercial rebates; landscape water budgets, “Water-Wise Gardening” CD-ROMs; and lawn and landscape water schedule reminders.

Mr. Bishop reported that briefings had been held with the city managers and wholesale customers within the CCWD service area.

Discussion took place on the statement the Governor issued earlier in the day concerning a statewide drought and how it would impact the District.

President Campbell asked if there were any other questions.

Director Wandry asked if LV Reservoir were drawn down, at what point would it affect the recreation program. Mr. Bishop responded at 65,000 acre feet it would be hard for the public to access the water for recreation.

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

President Campbell noted that LV Reservoir was built to ensure water quality. He explained that the reservoir water was used to blend the water taken from the Delta when water quality deteriorated. He advised that this information was being provided to make the public aware of the District’s water supply outlook and conservation communications plan.

Director Boatmun opined that the District should continue to provide outreach to the public and coordinate these efforts with local and regional agencies.

President Campbell advised that this item was a dialogue between the Board and staff and no action would be taken on the item. He informed the press present that they should contact Ms. Friesen if they had any questions.

REPORTS FOR DISCUSSION

9. Committee Report(s)

a. Board of Supervisors’ – Transportation, Water and Infrastructure Post-Meeting Report

(5/19/08)

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 the date of the Board’s Federal legislative visits had been changed to September 15-17.

Director Boatmun advised that she would be attending the State Controller’s Workshop being held on June 11.

REPORTS

11. General Manager

Mr. Bishop introduced Watershed and Lands Manager Peter Colby and gave a brief overview of his background. Mr. Colby replaced the recently retired Watershed and Lands Manager Bill Chilson.

12. Legal Counsel

On behalf of his law firm, Mr. Maddow complimented Mr. Colby on his recent assistance with various District projects.

13. Board Members

Director Burgh reported that he would be out of town from June 13-18.

Director Boatmun referenced a Pleasant Hill Recreation Department garden tour taking place on June 14. She reported on the ACWA Board of Directors meeting in Sonoma County and a tour of the Sonoma County Water Agency she attended on May 29-30. She also reported that she attended the “Do’s and Don’ts of Emergency Response Program” co-sponsored by the Industrial Association on June 4.

Vice President Anello did not have a report.

Director Wandry did not have a report.

President Campbell reported that, on behalf of the District, he had received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for 2007. He thanked Mr. Colby for participating in the Pledge of Allegiance.

CLOSED SESSION

14. Conference with Legal Counsel – Anticipated Litigation under Government Code 54956.9(b) – one case.

15. Real Property Transactions as allowed under Government Code Section 54956.8;

Property: Randall Bold Water Treatment Plant; Negotiating Party: City of Oakley;

District Negotiator: Walter J. Bishop; Issue: Instruct Negotiator on Price and Terms.

District Ne

16. Conference with Labor Negotiator as allowed under Government Code 54957.6; Agency Negotiator: Board President; Employee: General Manager

At 7:20 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 real estate and the additional attendees were Kurt Ladensack, Assistant General Manager of Administration and Peter Colby, Watershed and Lands Manager. Mr. Ladensack would also be an attendee for the third matter which concerned labor negotiations.

RECONVENE FROM CLOSED SESSION

17. Report on closed session.

At 8:20 p.m., President Campbell reconvened the meeting and announced that the Board did not take any action on the matters before it.

ADJOURNMENT

At 8:21 p.m., President Campbell made the following announcement: “As many people know, Robert Wisecarver died recently. He was a leader in the local movement to restore wildlife habitat throughout the community, and his leadership produced success which is admired by all. In his honor, we will adjourn tonight’s Board meeting in his memory.”

The meeting was adjourned to an adjourned regular meeting (Board Study Session) scheduled for June 12, 2008, in the Delta Conference Room, 2411 Bisso Lane, Concord.

Joseph L. Campbell, President

ATTEST:

Sharon L. Burris

District Secretary