CONTRA COSTA WATER DISTRICT

BOARD OF DIRECTORS

REGULAR MEETING

September 17, 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

                                                            Karl L. Wandry

Directors Absent:                       John A. Burgh

            General Manager:                       Walter J. Bishop

            Legal Counsel:                           Robert B. Maddow

            District Secretary:                      Sharon L. Burris

 

President Campbell advised that Director Burgh was absent and that he had previously notified the Board. 

 

PLEDGE OF ALLEGIANCE

 

Accounting Manager Rick Graziano led the pledge of allegiance.

 

ADOPTION OF AGENDA

 

Mr. Bishop reported that there were no changes to the agenda.   

 

PUBLIC COMMENT

 

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

 

CONSENT CALENDAR

 

1.         Approve warrant register dated September 18, 2008.

 

2.         Adopt Resolution No. 08-26 approving the application for grant funds from the Habitat Conservation Fund Program. 

3.         Real Property Transactions with the City of Oakley and LSK Development –

            Adopt Resolution No. 08-27 authorizing the execution of real property purchase contracts, grant deeds, and perpetual easement for slope maintenance as required for the Empire Avenue Widening Project in exchange for a payment by the City of Oakley of approximately $210,000; and as required to implement the exchange of 8,300 square feet of fee property for the City of Oakley Neroly Road Realignment Project in return for an equal amount of fee property from LSK Development. 

 

4.         Authorize execution of an agreement with Marcus G. Faust for government relations services for FY09 in an amount not to exceed $175,000. 

 

5.         Authorize execution of an agreement with MWH Americas, Inc. for professional engineering services in the amount of $420,000 in FY09 and $164,000 in FY10 for the Los Vaqueros Energy Recovery Project for a total amount not to exceed $584,000. 

 

Director Boatmun had questions on Agenda Item No. 4 – Authorize execution of an agreement with Marcus G. Faust for government relations services for FY09 in an amount not to exceed $175,000.   Responding to the question from Director Boatmun concerning the original cost for the annual contract, Mr. Bishop replied that the original contract was for approximately $110,000.  The contract had increased with inflation.  Director Boatmun requested information concerning travel expenses related to the federal legislative presentations Mr. Faust provides to the Board.  Mr. Bishop responded that the information would be made available.  

 

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

 

ACTION

 

6.         FY08 Year-End Financial Results and Reserve Fund Allocations

            a.   Authorize a $1.0 million transfer to the Other Post Employment Benefits Trust Fund to continue the funding required under Governmental Accounting Standards Board Statement Number 45: and

            b.   Authorize a $0.86 million increase to the Water Sales Contingency Reserve Fund.

 

Mr. Bishop reported that the FY08 year-end expenditures resulted in approximately a $5.8 million net benefit to the Ten-Year Financial Plan.  The FY09/FY10 Budget review had previously indicated staff anticipated approximately $5.4 million of net benefit to the Financial Plan.  The Board’s action to adopt the budget included the use of $2.4 million to fund a portion of the Los Vaqueros Reservoir Energy Recovery Project and $1.54 million to fund the amendment to the Retirement Plan benefit formula.  Staff was proposing that the remaining $1.86 million be allocated in two areas:  The first was to transfer $1 million to the Other Post Employment Benefits (OPEB) Trust.  This would continue the funding required by Governmental Accounting Standards Board Statement Number 45 (GASB 45).  The second was an increase to the Water Sales Contingency Reserve in the amount of $0.86 million to prepare for the event of a continued drought.  The Finance Committee had concurred with the proposed allocation of the positive financial plan impacts at their August 25 meeting.    

 

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

 

MOTION:  Boatmun/Wandry to a) authorize a $1.0 million transfer to the Other Post Employment Benefits Trust Fund to continue the funding required under Governmental Accounting Standards Board Statement Number 45; and b) authorize a $0.86 million increase to the Water Sales Contingency Reserve Fund.   The motion carried by a unanimous voice vote. 

 

DISCUSSION AND INFORMATION

 

7.         Review Chapter 7.16 of the District Code of Regulations pertaining to financial management.

 

Mr. Bishop commented on the background of the annual review of the investment policy.  He reported the investment policy was last updated on September 19, 2007 and no changes were being proposed during the current review.  The policy had been reviewed by the Finance Committee on August 25.  The committee concurred that no changes were required to the policy. He also gave a brief report on the District’s financial position given the current economic climate. 

 

Discussion took place on the District’s investments and the procedures for investing District funds. 

 

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

 

REPORTS FOR DISCUSSION

 

8.         Committee Report(s)

            a.   Operations and Engineering Committee Post-Meeting Report (9/4/08)

 

President Campbell asked for comments on the committee reports.  There were none. 

                                         

9.         Schedule Future Meeting Dates and Times

 

There were no future meeting dates and times to schedule. 

 

REPORTS

 

10.        General Manager

 

Mr. Bishop reported that the District had been re-rated by Standard and Poor’s, from an AA rating to an AA+ rating.  He commended Assistant General Manager of Administration Kurt Ladensack, Director of Finance Brice Bledsoe, and Mr. Graziano for their efforts in securing the upgraded rating.  He also commented briefly on the status of the state budget and SB 1 XX.

 

Mr. Bishop also reported on an emergency trip to Washington, DC, which he and President Campbell had just returned from earlier in the day.  The purpose of the trip, which took place September 15-17, was to meet with federal legislators.  A meeting was held with Senator Diane Feinstein where District projects were discussed including the Alternative Intake Project, Los Vaqueros Reservoir Expansion Project, and the two barrier project at Franks Tract.   A meeting also took place with United States Bureau of Reclamation (Reclamation) Commissioner Bob Johnson.      

 

11.        Legal Counsel

 

Mr. Maddow did not have a report.

 

12.        Board Members

 

Director Boatmun did not have a report.

 

Vice President Anello did not have a report.

 

Director Wandry reiterated that he would be out of town next week.

 

President Campbell reported briefly on the emergency trip to Washington, DC and the briefings held with Senator Feinstein and a meeting held with Commissioner Johnson.  He commented positively on Commissioner Johnson’s level of knowledge.  He opined that the trip was a success for the District.   

 

CLOSED SESSION

 

13.        Public Employee Performance Evaluation as allowed under Government Code 54957; Title: General Manager.

 

14.        Conference with Labor Negotiator as allowed under Government Code Section 54957.6;

(5 items):

a.   Agency Negotiator:  Walter J. Bishop; Employee Organization:  Confidential

      Employees

b.   Agency Negotiator:  Walter J. Bishop; Employee Organization:  Local 21

c.   Agency Negotiator:  Walter J. Bishop; Employee Organization:  Unrepresented

      Employees

d.   Agency Negotiator:  Walter J. Bishop; Employee: District Secretary

e.   Agency Negotiator:  Board President; Employee:  General Manager

 

At 7:07 p.m., President Campbell announced that the Board would move into closed session.  He advised that there were six matters before the Board.  The first item concerned a public employee performance evaluation and there would not be any additional attendees.  The additional attendees for the labor negotiation items for the Confidential Employees and Local 21 would be Mr. Ladensack and Human Resources and Risk Manager Elia Bamberger.  There would not be any additional attendees for the labor negotiation items regarding the Unrepresented Employees, District Secretary, or the General Manager. 

RECONVENE FROM CLOSED SESSION

 

15.        Report on closed session.

 

At 7:36 p.m., President Campbell reconvened the meeting and announced that the Board did not take any action on the matters before it.

 

ADJOURNMENT

 

At 7:37 p.m., President Campbell adjourned the meeting to the next regular meeting of the Board of Directors scheduled for October 1, 2008 commencing at 6:30 p.m.

 

 

 

                                                                                                                                                        

                                                                                                Joseph L. Campbell, President

 

ATTEST:

 

                                               

Sharon L. Burris

District Secretary