CONTRA COSTA WATER DISTRICT

ADJOURNED REGULAR MEETING

BOARD STUDY SESSION

November 20, 2008

 

MINUTES

 

 

CALL TO ORDER 

 

An adjourned regular meeting of the Board of Directors was called to order at 8:15 a.m., at the District Administration Building, located at 2411 Bisso Lane, Concord.

 

ROLL CALL

 

Directors Present:             Joseph L. Campbell, President

                                       Elizabeth Anello, Vice President (arrived at 8:30 a.m.)

                                       Bette Boatmun

                                       John Burgh

Directors Absent:              Karl L. Wandry

General Manager:              Walter J. Bishop

Legal Counsel:                  Robert B. Maddow

District Secretary:             Sharon L. Burris

 

President Campbell reported that Director Wandry was absent from the meeting and had previously notified the Board.  He then turned the meeting over to the facilitator Lee Shuff. 

 

ADOPTION OF AGENDA (Organization of Meeting)

 

Mr. Shuff reviewed the agenda and asked if there were any changes.  There were no changes. 

 

Mr. Shuff also reviewed the purpose, desired outcome of the study session and the ground rules. 

 

PUBLIC COMMENT 

 

Mr. Shuff asked if there were any public comments.  There were no public comments. 

 

Mr. Shuff welcomed the District’s two lobbyists: Federal Lobbyist Marcus Faust and State Lobbyist Julie Malinowski-Ball. 

 

DISCUSSION AND INFORMATION

 

1.         Federal Legislative Representative

 

Mr. Faust began his presentation by stating that this year’s presidential election was a historic election and the new administration would have the support of the Senate. 

 

Vice President Anello arrived at 8:30 a.m.

Mr. Faust reported that one of the largest issues for the new administration would be to jump start the economy.  He reported that there was discussion that the federal stimulus packages would not contain earmarks for public projects, but could increase funds in existing programs.  The State Revolving Fund for water projects would also be increased.  Discussion took place on the proposed stimulus package.  Other areas the new administration would need to address were pension reform and the stock market. 

 

Funding for District projects through the Water Resources Development Act (WRDA) was discussed.  It was noted that there was reluctance to fund new projects when existing projects were not completed.  Discussion also took place on the state receiving federal government grants

 

Mr. Faust commented positively on a meeting held in July with Senator Diane Feinstein, President Campbell and Mr. Bishop.  He also noted a meeting with Congressman George Miller where the Congressman was briefed on the District’s immediate actions.  Mr. Faust commented on the District’s relationship with the Congressman and U.S. Bureau of Reclamation Commissioner Bob Johnson.  He reported that Commissioner Johnson would be retiring at the end of 2008. He also commented on how the District’s technical expertise is valued and positively perceived by elected officials. 

 

President Campbell also commented on the District’s accessibility to Senator Feinstein and Congressman Miller.      

 

Director Boatmun asked who would be replacing Commissioner Johnson.  Mr. Faust replied that it was too early to predict.   

 

Discussions took place on the Association of California Water Agencies role, the peripheral canal, Sites Reservoir and the South Bay Aqueduct agencies.   

 

The Board thanked Mr. Faust for his presentation.

 

There was a short break at 9:27 a.m.

 

The Board reconvened at 9:38 a.m.

 

2.         State Legislative Representative

 

Ms. Malinowski-Ball reviewed the state election results and reported that three races were still being counted.  She stated that staff would be moving offices but the players would remain the same.  She noted that Assemblyman Mark DeSaulnier and Senator Tom Torlakson would be trading positions.  She advised that Assemblyman Jared Huffman would chair the Water, Parks and Wildlife Committee.  Discussion ensued on potential appointments for chairs of the various committees. 

 

Addressing the state’s financial status, Ms. Malinowski-Ball reported that the state could soon be out of money.  This was hindering the District’s ability to receive funding for projects including the Alternative Intake Project (AIP) and matching money for the Canal Replacement Project.  Discussions took place on receiving designated funding in SB XX1.    

Ms. Malinowski-Ball noted that the Los Vaqueros Reservoir Expansion (LVE) Project was “ready to go.”   She advised that elected officials were aware that a decision needed to be made soon concerning the size of the reservoir. 

 

Discussion also took place on the leadership of the water community and positions taken by various organizations concerning water-related projects.  Ms. Malinowski-Ball commented that the focus should be on benefits for the entire state vs. individual agencies.    

 

The Board thanked Ms. Malinowski-Ball for her presentation. 

 

3.                   Delta Water Quality Update

 

Facilitator Shuff noted that Assistant General Manager – Water Resources Greg Gartrell would be making a presentation on Delta water quality. 

 

Mr. Gartrell reviewed the summer and fall water quality conditions for the District’s Old River intake.  He referenced the chloride levels and reported that Los Vaqueros Reservoir blending would continue into December.  He reviewed the water storage levels and the anticipated water levels by the end of the year.  He advised that filling the reservoir would depend on water quality conditions. 

 

Mr. Gartrell advised that system storage was very limited.  He briefly reported on Shasta, Oroville, San Luis and Folsom Dam storage capacity.   Discussions took place on water allocations for next year from State Water Project and the Central Valley Project.  He advised that the anticipated allocations would be low.  Local water sources, water bank transfers and potential rationing were discussed. 

 

A discussion took place on Judge Oliver Wanger’s decisions concerning delta smelt and salmon and the impacts the decisions had on the District. 

 

Mr. Gartrell gave a brief overview of the Delta Vision Strategic Plan.  He advised that the plan was complete and included the District’s immediate actions.  Discussion ensued on the District’s immediate actions and how they could be quickly implemented.

 

Senior Projects Manager Marguerite Naillon reported briefly on the LVE Project and advised that the project was ready to move forward.  She gave a brief overview of the project benefits and identified them as environmental water management, water supply reliability and water quality improvement.  She noted that one of the major benefits was increased storage for drought reliability. 

 

Ms. Naillon reviewed the potential project participants at the state and federal level.  She identified Bay Area water agencies relying on Delta water as their drinking water supply and noted potential project participants at the local level.  Alternatives included in the Environmental Impact Statement/Environmental Impact Report (EIS/EIR) were reviewed and discussed. 

 

There was a lunch break at 11:35 a.m.  The board resumed at 12:00 p.m.

 

4.                   Overview of District Financial Plan

 

Assistant General Manager of Planning/Operations and Maintenance Jerry Brown presented an overview of the District’s Ten-Year Financial Plan.  He reported that the state was experiencing a severe drought and an economic downturn.  The District was anticipating prolonged impacts on its financial plan for the next four to five years.   

 

Discussion took place on the drought assumptions and the impact it would have on the District’s financial plan.  Mr. Brown reviewed the water consumption assumptions and discussion took place on the adjustments being considered. 

 

Director of Finance Brice Bledsoe addressed options for dealing with the anticipated financial impacts.  He referenced the Drought Relief Reserve Fund established by the Board in 2007, with a current balance of $4.4 million.  Funding for District projects through outside funding sources was also reviewed and discussed.     

 

Capital Appreciation Bonds (CABS) were discussed as a way to provide financial flexibility for funding projects. 

 

5.         General Comments

 

General Manager

 

Mr. Bishop commented on the District’s financial situation for the upcoming year considering the anticipated drought.  He added that the state of the economy added to the financial uncertainty. 

 

Legal Counsel

 

Mr. Maddow commented positively on the substance of the presentations. 

 

Board Members

 

Director Burgh commented on the quality of the presentations. 

 

Vice President Anello and Director Boatmun did not have any comments.    

 

ADJOURNMENT

 

At 12:38 p.m., President Campbell adjourned the meeting to an adjourned regular meeting of the Board of Directors scheduled for December 10, 2008 at 1331 Concord Avenue, at 6:30 p.m.

 

 

                                                                                                                                                        

                                                                                                Joseph L. Campbell, President

ATTEST:

 

                                               

Sharon L. Burris

District Secretary