CONTRA COSTA WATER DISTRICT

BOARD OF DIRECTORS

REGULAR MEETING

March 4, 2009

 

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

                                                            Karl L. Wandry, Vice President

                                                            Elizabeth R. Anello

                                                            Bette Boatmun

                                                            John A. Burgh

            General Manager:                       Walter J. Bishop

            Legal Counsel:                           Robert B. Maddow

            District Secretary:                      Sharon L. Burris

 

PLEDGE OF ALLEGIANCE

 

Water Conservation Supervisor Chris Dundon led the pledge of allegiance.

 

ADOPTION OF AGENDA

 

Mr. Bishop reported that there were two changes to the agenda.  A minor change was made to Agenda Item No. 1.a. – Future Services – March to add a ­­­­­­­­­­­­­­­­­Contra Costa Special Districts’ Association planning meeting for Director Boatmun on March 6.  The recommended action for Agenda Item No. 9 – Amend FY09/FY10 Adopted Budget for Drought Management Program had been revised to provide flexibility for implementing either a voluntary or mandatory conservation program.  A summary of proposed budget line item increases had also been included.  President Campbell advised that Director Boatmun was requesting that an additional Special Districts’ Association meeting be added to the March calendar.  The exact date of the meeting had not been established.   

 

PUBLIC COMMENT

 

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

 

President Campbell acknowledged and welcomed a student from Diablo Valley College in the audience. 

CONSENT CALENDAR

 

1.         Approve Directors’ Services/Business and Travel Expenses

            a.   Future Services – March

            b.   Expenses – January/February

            c.   Compensation – February

 

2.         Approve the minutes of February 4, 2009. 

                 

3.                   Approve the warrant register dated March 5, 2009.

 

4.                   Amend FY09 Goods and Services Contracts

            a.   Authorize an amendment in the amount of $26,500 to the contract with Karl Needham Enterprises for solids dewatering services for a revised total amount not to exceed $510,000;

            b.   Authorize an amendment in the amount of $10,000 to the contract with Acme Janitorial for janitorial services for a revised total amount not to exceed $210,000; and

            c.   Authorize an amendment in the amount of $25,000 to the contract with Hach Company for laboratory supplies for a revised total amount not to exceed $75,000.

 

5.                   Increase in Contract Authority – Chloramine Booster Station Project

            a.   Authorize a budget transfer of $100,000 from the Construction Department’s FY09 Country Club Pump Station Expansion Project Budget to the FY09 Treated Water Facilities Improvement Program Budget; and

            b.   Authorize an increase of $100,000 to the construction contract with Pacific Infrastructure for the Chloramine Booster Station Project for a revised total not to exceed $1,500,760.

 

6.                   Consulting Services Agreement Amendment for the Geographic Information Systems (GIS) Project

            a.   Authorize an amendment to the agreement with DCSE, Incorporated for additional professional consultant services to develop additional Geographic Information System (GIS) capabilities in the amount of $130,000, for a revised total amount not-to-exceed $755,000; and

            b.   Approve a FY09 labor budget reallocation in the amount of $40,000 from the Distribution Facilities program to the GIS Project for additional staff support.

 

7.                   Authorize Arthur J. Gallagher, the District’s insurance broker of record, to place property and liability insurance for the period of March 1, 2009 – March 1, 2010 in an amount not to exceed $748,708 in premium, which includes $120,000 in additional premium for the higher level of liability coverage required for the construction phase of the Alternative Intake Project.

 

President Campbell reminded the Board that approval of the consent calendar would include revised Agenda Item No. 1.a. and an additional meeting for Director Boatmun to be scheduled at a later date. 

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

 

ACTION

 

8.                   Adopt Resolution No. 09-03 declaring water shortage condition and directing preparation of a proposed ordinance to include water use reduction goals by customer class and other elements deemed necessary to sufficiently conserve available water supply.

 

Mr. Bishop advised that Director of Planning/Operations and Maintenance Jerry Brown would be making a presentation. 

 

Mr. Brown reported that the state was entering the third consecutive year of extreme dry conditions.  Governor Schwarzenegger had declared a state of emergency calling for statewide water conservation.  Recent rains, snowpack and reservoir storage had improved; however the statewide snowpack was 90% of average as of March 4, which was approximately 80% of average for April 1.  Voluntary conservation could be a consideration for the Board if the wet weather were to continue.

 

Mr. Brown reported that Lake Shasta was the District’s primary water supply.  Using a graph, he identified historic and current conditions at Lake Shasta, and advised that storage levels were at historic lows before the recent rains. 

 

Mr. Brown reported that Central Valley Project (CVP) issued the initial allocations for their contractors on February 20.  Municipal and industrial contractors were allocated 50% - 60% of supply depending on future conditions.  Allocations were based on the February 1 precipitation data, which did not take into consideration the heavy precipitation seen over the last month. 

 

Mr. Brown reviewed the District’s water demands and supplies.  He noted that additional water purchases would need to be made from the drought water bank based on customer demands to augment CVP allocations if the District received a 50% allocation from CVP.   

 

Mr. Brown reviewed the fiscal impact and advised that there would be no rate increases.  He reported that water transfers would increase costs approximately $7 million and water sales revenues would be reduced by approximately $25 million.  These impacts were included in the adopted Ten-Year Capital Improvement Plan (CIP) and Financial Plan.  The District is using the drought reserves, cost reduction, and alternative financing for some of the capital projects to bridge the funding gap and avoid rate increases to cover the shortfall. 

 

Mr. Brown reported that pending Board approval at this meeting, the first reading of the drought ordinance was scheduled for March 18.  Updates concerning allocations from U.S. Bureau of Reclamation were scheduled to be released on March 20.  A public hearing, a second reading of the ordinance, and consideration of adoption of a voluntary or mandatory drought program was scheduled for April 1.  Pending the Board’s decision to adopt a voluntary or mandatory drought program, the proposed effective date would be May 1.   

 

President Campbell asked if there were any questions for the presenter.   There were none.  He then asked if there were any public comments.  There were no public comments. 

 

MOTION:  Burgh/Boatmun to adopt Resolution No. 09-03 declaring water shortage condition and directing preparation of a proposed ordinance to include water use reduction goals by customer class and other elements deemed necessary to sufficiently conserve available water supply.  The motion carried by a unanimous voice vote. 

 

9.         Adopt Resolution No. 09-04 approving amendments to the FY09/FY10 budget increasing the total by up to $10,550,000 and authorizing up to 24 temporary positions.  Total expenditures and positions filled will depend on the Board of Directors’ April 1, 2009 decision to implement a voluntary or mandatory conservation program.    

 

Mr. Bishop reported that budget adjustments were necessary to ensure resources would be in place to implement the Drought Management Program if adopted by the Board.  The adjustments were included in the Board-adopted CIP and Financial Plan.  Actual expenditures would depend on whether the Board adopted a voluntary or mandatory program.  He advised that Director of Finance Brice Bledsoe was prepared to give a presentation if the Board chose. 

 

Discussion took place on penalties, revenue, rates and the drought program.  Mr. Bishop clarified the District did not anticipate any significant revenues and rates were not being raised.  There was no linkage between the District’s costs, reduced revenue and a drought penalty charge.  The action for Board consideration was to ensure resources were in place and funding available for the option to purchase water from the water bank, if necessary. 

 

President Campbell asked if staff would be updating the Board on the progress and how much of the funds had been expended.  Mr. Bishop replied, yes.  President Campbell asked if there would be an opportunity to readjust funds when the books were closed.  Mr. Bishop responded, yes, this would be part of the year-end adjustments. 

 

It was the consensus of the Board that a presentation was not necessary.    

 

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

 

MOTION:  Burgh/Boatmun to adopt Resolution No. 09-04 approving amendments to the FY09/FY10 budget, which a) Increases the budget total in an amount not to exceed $10,550,000 contingent on the water supply allocation from the Central Valley Project; and b) Authorizes the filling of up to 24 temporary drought program positions through FY10.  The motion carried by a unanimous voice vote. 

 

10.        Legislative Affairs Report – March 2009

            Review update on legislative issues and adopt District positions for the following:  State Legislation AB 10 (Hagman) – Public Funding:  Actions – Oppose; AB 13 (Salas) – Sacramento-San Joaquin Delta Conservancy – Watch; AB 25 (Gilmore) – Surface Water Storage – Watch; AB 39 (Huffman) – Sacramento-San Joaquin Delta:  Final Delta Vision Strategic Plan – Watch; AB 49 (Feur) - Water Conservation:  Urban Water Use – Watch;

SB 12 (Simitian) – Sacramento-San Joaquin River Delta, Clean Drinking Water, Water Supply Security, and Environmental Improvement Act of 2009 – Watch;  SB 26 (Simitian) – Home-Generated Pharmaceutical Waste – Support; SB 42 (Corbett) – Coastal Resources:  Seawater Intake – Oppose Unless Amended; Federal Legislation HR 372 (Costa) – San Joaquin River Restoration Settlement Act – Support and HR 700 (McNerney) – Healthy Communities Water Supply Act of 2009 – Support.

 

Mr. Bishop advised that Executive Management Analyst Desiree Castello would be providing a presentation.  He also noted that five new water bonds were introduced on February 27

 

Ms. Castello reported that the following three spot bills were related to the Delta Vision Blue Ribbon Task Force’s Strategic Plan and the establishment of a Delta Conservancy.  A Watch position was recommended on all three bills as detailed language was not available.

 

AB 13 (Salas) – Sacramento-San Joaquin Delta Conservancy - This bill would establish the Delta Conservancy to restore and manage habitat in the Delta and Suisun Marsh.

 

AB 39 (Huffman) – Final Delta Vision Strategic Plan – The bill would implement the Final Delta Vision Strategic Plan issued by the Delta Vision Blue Ribbon Task Force.    

 

SB 12 (Simitian) Delta Clean Drinking Water, Water Supply Security, and Environmental Improvement Act of 2009 – This bill would enact the Sacramento-San Joaquin River Delta, Clean Drinking Water, Water Supply Security, and Environmental Improvement Act of 2009.  If approved, the bill would authorize $6 billion in bonds and establish both the Delta Water and Land Use Authority and the Delta Watershed Conservancy.  It would also raise Delta water user fees up to $50 for every acre feet of water diverted from the Delta.  The bill was amended and reintroduced on February 26.  New language proposed that a fee would be charged for every acre-foot of water diverted within the Delta watershed and on any water conveyed through or around the Delta.  The funds would be expended by the council for the exclusive purpose of carrying out the bill’s provision.  At this time it was unclear if the authority would extend to the District and if the District would have any obligations. 

 

Ms. Castello also reported on the following additional state legislation: 

 

AB10 (Hagman) – Public Funding: Actions – The bill would add language prohibiting agencies from suing the state over any law or constitutional amendment passed by the voters, even if the initiative adversely affected them.  The recommended position was Oppose the bill.

 

AB 25 (Gilmore) – Surface Water Storage – The bill would direct the Department of Water Resources to expedite the environmental documentation for surface water storage projects identified in the 2000 CALFED Record of Decision.  Staff recommended a Watch position.

 

AB 49 (Feur) Water Conservation:  Urban Water Use – Ms. Castello noted that this was one of several spot bills being drafted to meet Governor Schwarzenegger’s call for 20% conservation in urban per capita water use by December 2020.  A Watch position was recommended for this bill.

 

SB 26 (Simitian)  Home-Generated Pharmaceutical Waste – The bill would require the State Board of Pharmacy and individual pharmacies to manage pharmaceutical-related waste.  It would also authorize pharmacies to accept the return of home-generated pharmaceutical waste.  Ms. Castello noted that the District had been active in researching this issue and its impact on water treatment.  A Support position was recommended. 

 

SB 42 (Corbett) – Coastal Resources:  Seawater Intake – Ms. Castello reported that the bill was controversial and that the Association of California Water Agencies (ACWA) had taken an oppose position.  The bill would eliminate ocean open intakes.  It would impact approval of desalination plants as cost-effective operation is often linked to adjacent power plants using open ocean intakes.  The District preferred an amendment to limit this legislation to intakes using once-through cooling and to further define the definitions of seawater and open ocean intakes.  Staff was recommending a position of Oppose Unless Amended.

 

Discussion took place on proposed amendment language for the bill.  Mr. Bishop clarified that the District would seek language to exclude impacts on desalination from the bill. 

 

Referencing SB 26, Vice President Wandry asked if the bill stipulates how pharmacies were to dispose of the pharmaceuticals.  Ms. Castello responded, no. 

 

President Campbell asked if there were any other questions.  There were none. 

 

Ms. Castello reported on the following federal legislation:

 

HR 372 (Costa) – San Joaquin River Restoration Settlement Act – This bill was the reintroduction of last year’s HR 24 (Radanovich), which the District supported.  The settlement would resolve years of litigation and represents a landmark accord by numerous agencies.  The bill potentially could improve water quality in the Delta.  The recommended position was Support. 

 

Responding to a question from President Campbell asking if language in the bill addressed how the settlement would be paid for, Mr. Bishop replied that it was not known at this time. 

 

HR 700 (McNereney) – Health Communities Water Supply Act of 2009 – This bill would extend the Federal Water Pollution Control Act pilot grant program for smaller communities who were interested in researching alternative water supply pilot programs.  The bill would focus on small communities with a population under 10,000.  The bill would create additional water supply benefits for every district relying on the state’s limited supplies.  A Support position was recommended. 

 

Mr. Bishop reported that five water bonds were introduced on February 27.  Additional information concerning the bonds would be provided to the Board when it became available.  He identified the bonds as:

 

AB 1187 (Huffman and Caballero) – Safe, Clean, Reliable Drinking Water Supply Act of 2010

SB 301 (Florez) – Water Supply Reliability & Ecosystem Recovery & Restoration Act – 2009

SB 371 (Cogdill) – Safe, Clean, Reliable Drinking Water Supply Act of 2009

SB 456 (Wolk) – Safe, Clean, Reliable Drinking Water Supply Act of 2010

SB 735 (Steinberg) – Safe, Clean, Reliable Drinking Water Supply Act of 2010

MOTION:  Boatmun/Anello to adopt District positions for the following:  State Legislation AB 10 (Hagman) – Public Funding:  Actions – Oppose; AB 13 (Salas) – Sacramento-San Joaquin Delta Conservancy – Watch; AB 25 (Gilmore) – Surface Water Storage – Watch; AB 39 (Huffman) – Sacramento-San Joaquin Delta:  Final Delta Vision Strategic Plan – Watch; AB 49 (Feur) - Water Conservation:  Urban Water Use – Watch; SB 12 (Simitian) – Sacramento-San Joaquin River Delta, Clean Drinking Water, Water Supply Security, and Environmental Improvement Act of 2009 – Watch;  SB 26 (Simitian) – Home-Generated Pharmaceutical Waste – Support; SB 42 (Corbett) – Coastal Resources:  Seawater Intake – Oppose Unless Amended; Federal Legislation HR 372 (Costa) – San Joaquin River Restoration Settlement Act – Support and HR 700 (McNerney) – Healthy Communities Water Supply Act of 2009 – Support.   The motion carried by a unanimous voice vote. 

 

REPORTS FOR DISCUSSION

 

11.        Committee Report(s)

            a.   Board of Supervisors’ Transportation, Water and Infrastructure Committee Post-Meeting Report (2/19/09)

            b.   Retirement Plan Committee Post-Meeting Report (2/20/09)

            c.   Bay Area Water Forum Post-Meeting Report (2/23/09)

 

President Campbell commented that he and Director Burgh attended Board of Supervisors’ Transportation, Water and Infrastructure Committee meeting on February 19.  

 

President Campbell asked if there were any other comments on the committee reports.  There were none. 

 

12.        Schedule Future Meeting Dates and Times

 

There were no future meeting dates and times to schedule. 

 

REPORTS

 

13.        General Manager

 

Mr. Bishop reminded the Board that he would be attending the American Water Works Association Workshop March 7-15.  Assistant General Manager of Engineering/Construction Steve Welch would be Acting General Manager.

 

14.        Legal Counsel

 

Mr. Maddow did not have a report.

 

15.        Board Members

 

Director Boatmun gave a brief overview of the ACWA Legislative Conference she attended February 26-28 in Washington, D.C.   She advised that she would give a more detailed update at the Board meeting on March 18. 

Director Anello did not have a report.

 

Vice President Wandry did not have a report.

 

Director Burgh did not have a report.

 

President Campbell reported that he briefed two newly-elected City of Walnut Councilmembers on February 25.  He also reported that he and Assistant General Manager of Water Resources Greg Gartrell met with two members of the Santa Clara Valley Water District Board of Directors and staff on February 26 concerning the Los Vaqueros Expansion.  He noted that he and Director Boatmun attended the Contra Costa State of the County address on February 19, and that he also attended a Contra Costa Council Board of Directors meeting on February 20.   

 

CLOSED SESSION

 

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

 

At 7:13 p.m., President Campbell announced that the Board would move into closed session.  The matter before the Board concerned litigation and did not require the announcement of additional attendees. 

 

RECONVENE FROM CLOSED SESSION

 

17.        Report on closed session.

 

At 7:18 p.m., President Campbell reconvened the meeting and announced that the Board acted in closed session to authorize a settlement of a claim by the Lowenberg Corporation in the amount of $39,400.  The Board’s action was taken by unanimous vote. 

 

ADJOURNMENT

 

At 7:19 p.m., President Campbell adjourned the meeting to the next regularly scheduled meeting of the Board of Directors scheduled for March 18, 2009 and commencing at 6:30 p.m.

 

 

 

                                                                                                                                                        

                                                                                                Joseph L. Campbell, President

ATTEST:

 

                                               

Sharon L. Burris

District Secretary