CONTRA COSTA WATER
DISTRICT
BOARD OF DIRECTORS
REGULAR MEETING
June 3, 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
Acting District Secretary: Wendy E. Chriss
PLEDGE OF ALLEGIANCE
Principal Engineer Jeff Quimby 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 no public comments.
CONSENT CALENDAR
1. Approve
Directors’ Services/Business and Travel Expenses
a. Future
Services – June
b. Expenses
– May
c. Compensation
– May
2. Approve the following minutes:
a. May
6, 2009
b. May
13, 2009
3.
Approve the warrant register dated June 4, 2009.
4.
Adopt Resolution No. 09-07 approving the Customer Information
Protection Program.
5. Authorize execution of an agreement for
temporary transfer of water in 2009 to San Luis & Delta Mendota Water
Authority.
6. Approve
revision of the Procedures Manual for Board Members.
7. Authorize execution of an agreement
with Bay Air for heating and air conditioning services in an amount not to
exceed $100,000 for FY10 with the option to extend the agreement for two
additional 12-month periods in amounts not to exceed the adopted budgets of
those fiscal years.
8. Authorize execution of an agreement
with Wiley, Price & Radulovich to provide employment and labor law special
counsel services for FY10, in an amount not to exceed $120,000.
9. Authorize execution of an agreement
with Creative Security Company for security services in an amount not to exceed
$150,000 in FY10 with the option to extend the agreement for two additional
12-month periods in amounts not to exceed the adopted budgets of those fiscal
years.
10. Authorize execution of an agreement with
Able Building Maintenance for janitorial services in an amount not to exceed
$225,000 for FY10 with the option to extend the agreement for two additional
12-month periods in amounts not to exceed the adopted budget for those fiscal
years.
11.
Authorize Arthur J. Gallagher, the District’s insurance
broker of record, to execute an agreement with Liberty Mutual Insurance Company
for a “zero deductible” Workers’ Compensation insurance policy for FY10 for
$590,733.
Director Burgh advised that since he was not present at the
May 13, 2009 meeting, he would be abstaining on Agenda Item No. 2.b. He also commented on Agenda Item No. 5. He noted that this agreement with the San
Luis & Delta Mendota Water Authority was subject to District water demands
being met. The District would not sell water
if it was needed for District water quality or quantity.
Director Burgh also commented on Agenda Item Nos. 7, 9 and
10. He commended staff on the efficient
process and management practices used to reduce future overhead costs during a
stressful economy.
MOTION: Boatmun/Wandry to approve the consent
calendar. The motion carried by a unanimous
voice vote with the exception of Director Burgh abstaining on Agenda Item No.
2.b.
ACTION
12.
Award bids for FY10 water treatment chemicals requirements
to the companies listed on the Bid and Cost Summary at the indicated unit prices
for a total cost not to exceed $3,393,950 in FY10.
Mr. Bishop reported that the bids were awarded to the
lowest apparent responsible bidders. The
market for water treatment chemicals had stabilized and the price increases
were slowing down significantly. This item
was placed on the action calendar due to the consolidated total dollar amount.
President Campbell asked if anyone in the public would like
to comment on the item. There were no
comments.
MOTION: Boatmun/Anello to
award bids for FY10 water treatment chemicals requirements to the companies
listed on the Bid and Cost Summary at the indicated unit prices for a total
cost not to exceed $3,393,950 in FY10.
The motion carried by a unanimous voice vote.
13. Adopt Resolution No.
09-08 amending the budget for FY10 which:
a.
Decreases the FY10 revenue projections by $23.7 million;
b.
Increases the FY10 reserve use by $27.0 million;
c.
Decreases the FY10 operating budget by $6.1 million;
d.
Increases the FY10 capital budget by $14.8 million; and
e.
Reduces temporary staffing positions for the Drought
Program from 24 positions to 10.
Mr. Bishop reported that the Finance Committee met
and concurred with the recommendations at their May 12 meeting. The Ten-Year Capital Improvement Plan (CIP) reflects
the impact of reduced water sales until 2014.
The CIP and Financial Plan were based on an inflation factor of 4%. He advised that Director of Finance Brice
Bledsoe would be making a presentation.
Mr. Bledsoe presented the results of the FY09/FY10
Mid-Cycle Budget Review. The review focused on the FY09 financial performance
and proposed budget adjustments for revenues and expenditures and staffing
levels for FY10. It also proposed an additional
$6 million of capital re-budget requests since the time of the Finance
Committee review. The re-budgets were cash
flow adjustments and did not impact the Ten-Year Financial Plan.
Mr. Bledsoe reviewed the three key messages. The first message was that the FY09 operating
revenues were projected to be $13 million lower than budget due primarily to
the economic downturn and the drought.
The revenue reductions were offset by $12.4 million of expenditure reductions
and $0.6 million of higher reserve use.
The second message was that the FY10 budget adjustments were in two
categories: the first category adjusted
the revenues and expenditures to reflect a combination of the CIP and Ten-Year
Financial Plan adopted by the Board on February 18. The adjustment to water sales revenues reflected
the implementation of the 15% Drought Management Program instead of the 25% Drought
Management Program originally anticipated.
The second category included approximately $14.8 million of capital
re-budgets. The third message was that
there would be approximately $12.3 million less deficit than projected in the
CIP and Ten-Year Financial Plan.
Mr. Bledsoe reviewed the impacts of the FY09
financial performance. He reported that
water sales were down approximately $4.2 million and Facility Reserve Charges
(FRCs) were approximately $11.2 lower than anticipated. Miscellaneous revenues were projected to end
the year at $4.4 million above budget due to a $2 million settlement payment
for the Freeport Settlement and an insurance settlement for the Paso Nogal Pump
Station. Expenditure reductions
consisted of $5.1 million in operating expenses due to less water purchases and
savings in energy and fuel costs.
Revenue funded capital was proposed to be $7.1 million lower than
budget, with $6 million in re-budgets to FY10.
He also reviewed the Outside Funded and Debt Funded categories.
Mr. Bledsoe reviewed the highlights of the FY10
revised revenue projections. He noted
that this was important due to the significant changes reflected in the
CIP. It was proposed that the revenues
be adjusted to reflect the projects that were included in the Board-adopted CIP. He
noted that the proposed change in water sales revenues was premised on adopting
the 15% Drought Management Program instead of the 25% Drought Management
Program.
President Campbell referenced a chart reviewed during
the February 4 CIP presentation where a line projected that reserve use would daylight
in the year 2014. He asked if the
changes in the drawdown would affect the timing of when the reserve balance was
projected to turn around. Mr. Bledsoe responded, yes, and that the
District was still assuming a slow recovery.
Mr. Bledsoe reviewed the FY10 proposed operating
budget adjustments. Decreasing the
operating budget by $6.1 million and increasing the FY10 capital budget by
$14.8 million was proposed. He noted that less water was purchased
and fewer temporary staff positions were required due to a less severe drought
management program being implemented.
Director Burgh asked how the state’s present financial
situation would impact the District. Mr.
Bishop responded that the largest single source of revenue the state had
committed to the District was for the Alternative Intake Project and that
amount was not included in the District’s revenue projections.
Mr. Bledsoe reported that the FY10 adjusted expenditures
increased $8.7 million more than previously amended. The impacts on the CIP and Ten-Year Financial
Plan totaled $12.3 million. The total
for FY09 was $6.2 million and the total for FY10 was $6.1 million.
President Campbell asked if there were any questions for
the presenter. There were no
questions.
President Campbell commented that this was not a new
subject for the Board. There had been
many discussions regarding financial options for the District between the Board
and staff and the Board was well informed.
President Campbell asked if anyone in the public would like
to comment or had any questions. There
were no comments or questions.
MOTION: Boatmun/Burgh to adopt
Resolution No. 09-08 amending the budget for FY10 which:
a)
decreases the FY10 revenue projections by $23.7 million; b)
increases the FY10 reserve use by $27.0 million; c) decreases the FY10
operating budget by $6.1 million; d)
increases the FY10 capital budget by $14.8 million; and e) reduces
temporary staffing positions for the Drought Program from 24 positions to
10. The motion carried by a unanimous
voice vote.
President Campbell advised that Director Burgh had
made him aware that the President of the Board of Directors of the Berkshire Village
Water Association (BVWA), Mr. Lynn Kuehl, was present. President Campbell invited
Mr. Kuehl to the podium to address the Board.
Mr. Maddow advised that the Board had already
addressed the public comment section on the agenda. He reminded the Board that the same rules would
apply. A decision could not be reached
at this meeting, questions could be asked for clarification, a matter could be
referred to staff, or the Board could decide to agendize a topic for a future
agenda.
Mr. Kuehl addressed the Board. He stated that members of the association did
not have individual water meters. The
association was voluntary and members could join or they could choose to use
treated water. He noted that the association averaged approximately
5,000 gallons per day (gpd) over the allotment.
Mr. Kuehl stated that there was a concern about association
membership satisfaction. He noted that members
were being encouraged not to apply for treated water to replace the untreated
water supply. He opined that the association
was being treated as an irrigation district as opposed to homeowners. He urged the Board to consider whether all of
the members switching to treated water would be something the District wanted
to have happen.
President Campbell advised that comments were always welcome
at Board meetings and reiterated that the Board could not take any action at
this meeting.
Director Burgh commented on the positive experience
he had when he spoke with the BVWA and encouraged staff to make themselves acquainted
with Mr. Kuehl.
President Campbell advised Mr. Kuehl that Mr. Bledsoe
was available to work with him on the issues.
Director Boatmun commended Mr. Kuehl on his efforts
with the BVWA.
14. Adopt Resolution No. 09-09 adopting a
Negative Declaration and Addendum for the Contra Costa Canal Intake (Rock
Slough) Fish Screen Project.
Mr. Bishop reported that this item was an administrative
action to update environmental documentation. The U.S. Bureau of Reclamation (Bureau)
and Department of Water Resources (DWR) were the lead agencies for the project. The item was placed on the action calendar
because the District was the responsible agency in adopting the negative
declaration. DWR and the Bureau had
approved the environmental review of the project in 1997; however, construction
of the project did not proceed due to limited funding. Stimulus funds from the American Recovery and
Reinvestment Act of 2009 were being allocated to complete construction and the
project was scheduled to start construction in the fall of 2009.
Mr. Bishop noted that an addendum to the 1977 Negative Declaration
had been prepared by the District to ensure compliance and refinement of
environment conditions for the project. The
addendum included minor technical changes, which were not substantial and did
not require recirculation of the environmental document.
President Campbell asked if anyone in the public would like
to speak. There were no comments.
MOTION: Wandry/Boatmun to
adopt Resolution No. 09-09 adopting a Negative Declaration and Addendum for the
Contra Costa Canal Intake (Rock Slough) Fish Screen Project. The motion carried by a unanimous voice vote.
15. Legislative
Affairs Report – June 2009
Review update on legislative issues and adopt District positions for the
following: State Legislation AB 410 (De
La Torre) Recycled Water – Watch; AB
450 (De La Torre) Recycled Water – Watch;
SB 407 (Padilla) Plumbing Fixtures – Support;
SB 460 (Wolk) Water Conservation – Support
if Amended; SB 565 (Pavley) Waste Water Recycling – Watch; SB 808 (Wolk) San Francisco Bay/Sacramento – San Joaquin
Delta Estuary – Watch; and Federal
Legislation HR 2442 (Miller) Bay Area Regional Water Recycling Expansion Act of
2009 – Support; HR 2454 (Waxman)
American Clean Energy and Security Act of 2009 – Watch; and S 1005 (Cardin) Water Infrastructure Financing Act
– Support.
Mr. Bishop reported that Public
Affairs Director Jeff Weir would be making a presentation.
Mr. Weir reported on the following
State legislation:
AB 410 (De La Torre) Recycled Water – This bill was drafted to meet a 20%
reduction in urban water use by the year 2020.
It also included setting a goal of 1.3 million acre-feet of new recycled
water per year by 2020. Mr. Weir noted
that this was a possible funding source for implementing recycled water at the Concord
Naval Weapons Station. A Watch position was recommended for this
bill.
AB 450 (De La Torre) Recycled Water – Mr. Weir reported that this bill would prohibit using
potable water for oil refineries if suitable recycled water was available as an
alternative. The proposed amendments to
the bill ensure recycling projects were cost-effective and recognize regional
environmental differences such as Delta discharges, which would affect the
District. The recommended position was Watch.
SB 407 (Padilla) Plumbing Fixtures:
High Water Use – This bill required residential and commercial property owners to
retrofit outdated, high-water use plumbing fixtures with water-saving devices by
the year 2014. The upgrades would be triggered
by sale, transfer, or permitting for property improvements. Exceptions could be made for severe financial
hardships, historical sites, and foreclosures. A Support
position was recommended for this bill.
SB 460 (Wolk-D) Water Conservation: Urban Water Management Plans – Mr. Weir
reported that this bill would require urban water suppliers to implement water management plans that
reach a conservation goal of 20% per capita reduction by 2020. Annual reports would be required to be
submitted to new entities that would become a statewide resource. The Association of California Water Agencies
(ACWA) was supporting amendments to define efficient water management practices
for agricultural water suppliers. Urban
water suppliers were supporting amendments that give credits for prior conservation
programs and ensure that per-capita goals apply only to potable water. The recommended position was Support if Amended.
Responding to a question from President Campbell regarding
the current status of the amendments, Mr. Weir responded that they were being
debated on the Senate floor and in the Appropriations Committee.
Referencing SB 407, Vice President Wandry asked if there
was an exception for second story bathrooms.
Mr. Weir responded that he had not seen any level of detail that was that
specific.
SB 565 (Pavley) Waste Water Recycling – This bill required the State Water
Board to develop a recycling plan where 50% of wastewater discharged into the ocean
in 2009 was recycled and put to beneficial uses by 2030. The bill also created a secondary fee on
wastewater dischargers to the ocean. It
was being supported by many environmental groups and opposed by ACWA. Urban districts are seeking amendments to
eliminate the secondary fee structure. A Watch position was recommended.
President Campbell asked for an explanation of a secondary
fee on wastewater discharges into the ocean.
Mr. Bishop replied that currently there was a fee on National Pollutant Discharge
Elimination System (NPDES) permits for discharging. The fee would increase significantly and set up
an incentive program so that this could be funded and appropriated back to the
agencies.
SB 808 (Wolk) San Francisco
Bay/Sacramento-San Joaquin Delta Estuary – This bill proposed that the State Water Resources
Control Board implement a strategic
workplan for actions to protect the beneficial uses of the Delta Estuary and
study Delta water diversion methods.
This bill had failed in committee since the time the agenda was
distributed; therefore, no position was recommended.
Mr. Weir reported on the following
Federal legislation:
HR 2442 (Miller) – Bay Area Regional
Water Recycling Program Expansion Act of 2009 – This bill authorizes $33 million in funding for
six Bay Area recycling projects, including $1.8 million for Central Contra Costa
Sanitary District. Projects in Dublin, Petaluma, Redwood City, Palo Alto and
Antioch were
also included. The proponents anticipate
the projects would save 2.6 billion gallons of water annually. A Support position was recommended for this
bill.
President
Campbell commented that this was a funding bill. He then asked if there was a match to the
funds. Mr. Bishop responded that it
would be 25%.
HR 2454 (Waxman) American Clean Energy
and Security Act of 2009 – Mr. Weir reported that this bill is a comprehensive energy and climate
change measure. It also includes a water-conservation
bill authored by Congressman Miller to provide $50 million in funding for a WaterSense
program to expand conservation. The District
assisted Congressman Miller on language to ensure funds go to cost-effective
and energy-efficient conservation projects.
Mr. Bishop
commented that he would like the Board to consider a Support position rather than the Watch position previously proposed.
S 1005 (Cardin, Boxer) Water
Infrastructure Financing Act – This bill revises and expands the State
Revolving Funds (SRF) program and authorizes $20 billion for clean water in SRF
over the next five years. It also provides
for $14.7 billion for drinking water projects and $200 million for research. A Support position was recommended.
President Campbell asked if there were any questions for
the presenter. There were no
questions.
President Campbell asked if there were any public comments
on the item. There were no
comments.
President Campbell thanked Mr. Weir for the
presentation.
MOTION: Burgh/Wandry to adopt District positions for the
following: State Legislation
AB 410 (De La Torre) Recycled Water – Watch;
AB 450 (De La Torre) Recycled Water – Watch;
SB 407 (Padilla) Plumbing Fixtures – Support;
SB 460 (Wolk) Water Conservation – Support
if Amended; SB 565 (Pavley) Waste Water Recycling – Watch; and Federal Legislation HR 2442 (Miller) Bay Area Regional
Water Recycling Expansion Act of 2009 – Support;
HR 2454 (Waxman) American Clean Energy and Security Act of 2009 – Support; and S 1005 (Cardin) Water
Infrastructure Financing Act - Support.
The motion carried by a unanimous voice vote.
REPORTS FOR DISCUSSION
16. Committee Report(s)
a. Finance
Committee Post-Meeting Report (5/12/09)
b. Board
of Supervisors’ – Transportation, Water and Infrastructure Committee
Post-Meeting Report (5/18/09)
President Campbell
advised that he and Director Burgh did not attend the Board of Supervisors’
Transportation, Water and Infrastructure Committee meeting on May 18. He commented that items on the agenda were
not applicable to the District.
17.
Schedule
Future Meeting Dates and Times
Mr. Bishop announced that the District’s Health and Safety
Fair would be held June 9 at the Antioch
Service Center
and June 10 at District Center in Concord.
REPORTS
18. General Manager
Mr. Bishop introduced the new Risk Management Officer Rick
Drury. He advised that Mr. Drury replaced
the former Risk Management Officer Trisha Brittain who retired on May 29.
19. Legal
Counsel
Mr. Maddow reported briefly on a preliminary injunction
issued last week concerning Delta diversions.
He also reported briefly on biological opinions and three lawsuits that
had been filed relating to the biological opinions. He noted that he attended the ACWA 2009
Spring Conference in Sacramento. He advised that he would be out of the office
beginning June 18 and returning on July 1. Mr. Doug Coty, from his firm, would be
covering the Board Study Session on June 19.
20. Board Members
Director
Burgh reported that he would be attending the Pleasant Hill City Council
meeting on June 15, at the request of the City Council. He reported that he would be unable to attend
the Board of Supervisors’ Transportation, Water and Infrastructure Committee
meeting on June 22 due to a conflict with the Bay Area Water Forum
meeting. He also commented briefly on
the ACWA demonstration on the capital steps during the ACWA Conference.
Director
Boatmun reported that she attended the ACWA Board of Directors meeting and
workshop on May 28 and 29 in Sacramento. She noted that Phil Isenburg and Sunne McPeak
had given a presentation on the Delta Vision.
She also provided a newsletter for children from the Coachella Valley
Water District and requested that it be given to the Public Information
Department.
Director
Anello reported that she would be attending the Retirement Committee meeting on
June 5.
Vice
President Wandry did not have a report.
President
Campbell reported that he also attended the ACWA Conference in Sacramento.
He was disappointed with the program but favored the location. He also reported that he had received a letter
and petitions from the Castle Rock County Water District stating that they were
opposed to the water allocation they had received from the District. He advised that he would be on vacation June
4-16.
ADJOURNMENT
At 7:53 p.m., President Campbell adjourned the meeting to the next
regular meeting of the
Board of Directors scheduled for June 17, 2009, and commencing at 6:30 p.m.
Joseph
L. Campbell, President
ATTEST:
Sharon L. Burris
District Secretary
