CONTRA COSTA WATER DISTRICT

BOARD OF DIRECTORS

REGULAR MEETING

September 16, 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

            Acting Legal Counsel:                Douglas E. Coty

            District Secretary:                      Sharon L. Burris

 

PLEDGE OF ALLEGIANCE

 

Director of Operations and Maintenance Pete Schoemann led the pledge of allegiance. 

 

ADOPTION OF AGENDA

 

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

 

President Campbell acknowledged City of Concord Mayor Laura Hoffmeister in the audience.  He also acknowledged two students from Los Medanos College and welcomed them to the meeting. 

 

PUBLIC COMMENT

 

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

 

PRESENTATION

 

1.                               Customer Recognition for Exemplary Water Conservation during 2009. 

 

President Campbell commented that the Board adopted a 15% Drought Management Program on April 1 to address reductions in water supply and commented positively on the program’s success.  He reported that customers had shown their commitment to water conservation and had achieved an overall 18% reduction from April 1 through August 2009.  He commended customers for implementing innovative and creative conservation strategies and added that it pleased the Board to recognize four customers at this meeting. 

 

Concord homeowners Roy and Rosadelia Detwiler were recognized for converting their front and back yards to low maintenance, water efficient, drought tolerant landscaping.  President Campbell reported that they had reduced their overall water consumption by 30%, saving an average of 160 gallons per day (gpd).  The Detwiler’s property was featured on the Bring Back the Natives Tour, and they opened their home for the District’s segment of Water Matters on NBC Bay Area. 

 

President Campbell thanked Mr. and Mrs. Detwiler and presented them with a plaque on behalf of the Board. 

 

President Campbell announced that Mayor Laura Hoffmeister and City of Concord Director of Public Works Alex Pascual were present to receive the recognition on behalf of the City.  He reported that the City had identified key properties and parks to maintain for community use, while allowing other properties to stress during the drought period.  The District had worked with the City to upgrade central irrigation controls and take advantage of rebate programs to mitigate the cost.  The City had saved more than 9.7 million gallons of water during the summer months of July and August using these adjustments to their irrigation schedule. 

 

Mayor Hoffmeister thanked the Board on behalf of the City.  She recognized Mr. Pascual and Scott Vasquez, the City’s Public Works Horticulture Advisor.  She also thanked District staff for their creative solutions to achieve these water savings goals.  She referenced an article she had written in the September issue of the Concordian titled, “Yellow is the new Green” addressing water conservation within the City. 

 

President Campbell reported that two of the recipients were unable to attend the Board meeting.  He recognized The David Deutscher Company in Pleasant Hill as one of the recipients.  He commended the Deutscher Company for replacing grass with drought tolerant plants at its property on Civic Drive, in Pleasant Hill.  He advised that this large-scale project would cut long-term water use by approximately 50%.

 

Concord residents James and Stacey Morikawa were also unable to attend the meeting.  The Morikawa’s had contacted the District for a home water audit where numerous opportunities for repairs and adjustments to their watering schedule were identified.  Implementing the suggestions from the audit, the Morikawa’s saved more than 1,600 gpd.     

 

CONSENT CALENDAR

 

2.                   Approve the minutes of August 19, 2009.            

                             

3.                   Approve the warrant register dated September 17, 2009.

 

4.         Reject all bids for the procurement of a hydroelectric generator for the Los Vaqueros Energy Recovery Project. 

 

5.         Approve the General Manager’s 2009 Pay for Performance award of 4.75%.   

 

6.         Authorize execution of a Memorandum of Understanding with the District Secretary for the term of October 5, 2009 through October 3, 2010 including a salary increase of 3.0% effective October 5, 2009. 

 

7.         Authorize execution of a Memorandum of Understanding for Confidential Unit Employees for the term of October 5, 2009 through October 3, 2010 providing a salary range increase of 3.0% effective October 5, 2009. 

 

8.         Authorize execution of a Memorandum of Understanding for Unrepresented Employees for the term of October 5, 2009 through October 3, 2010 providing a salary range increase of 3.0% effective October 5, 2009. 

 

9.                   Authorize execution of an agreement with Marcus G. Faust for government relations services for FY10 in an amount not to exceed $175,000. 

 

10.               Authorize an amendment to the Commercial Paper Revolving Credit Agreement with State Street Bank and Trust Company and California State Teachers Retirement System to extend the term through October 14, 2010 at an annual fee not to exceed $950,000.

 

President Campbell advised that he had received a phone call from a citizen referencing pay for performance.  The citizen commented that there were over 300 people in the District who did not receive pay for performance.  This should be taken into consideration in the future and should be included in the Board packet.  He promised the citizen that he would bring their comment to the Board. 

 

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

 

ACTION

 

11.               Adopt Resolution No. 09-21 amending Chapter 7.16 of the District’s Code of Regulations pertaining to financial management. 

 

Mr. Bishop reported that the Finance Committee had reviewed and concurred with the proposed changes to the policy at its meeting on August 27.  He advised that Accounting Manager Rick Graziano would be making a presentation. 

 

Mr. Graziano reported that the California Government Code required that the Board review the District’s Investment Policy annually and approve any proposed changes.  The investment policy was last reviewed by the Board on September 17, 2008.  Two minor changes to the Code were being proposed for Board consideration.  The changes added clarity and provided operational flexibility. 

 

Mr. Graziano reviewed the key messages and policy objectives.  Policy objectives included providing safety and security for the investment funds, providing liquidity to meet the District’s cash flow obligations and to maximize the yield. 

 

The first proposed change clarified that the policy did not cover the District’s Other Post Employment Benefit (OPEB) Trust Fund.  He reported that the OPEB Trust Fund was covered by a separate policy.  The second proposed change allowed the District to invest funds in money market accounts comprised exclusively of Federal Government-backed securities.  This type of investment could provide a higher yield for District investments with no increased risk. 

 

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

 

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

 

MOTION:   Boatmun/Burgh to adopt Resolution No. 09-21 amending Chapter 7.16 of the District’s Code of Regulations pertaining to financial management. 

 

12.               Accept FY09 report on year-end financial results and 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.

 

Mr. Bishop reported that the year-end financial results were reviewed by the Finance Committee on August 27.  The Committee had concurred with staff’s recommendation.  He advised that Director of Finance Brice Bledsoe would be making a presentation. 

 

Mr. Bledsoe reviewed the key messages for the FY09 year-end results and reserve fund allocations.  He reported that there was reduction of $9.3 million in the deficit previously assumed in the 2010-2019 Capital Improvement Program and Ten-Year Financial Plan adopted by the Board on February 18.  The $9.3 million reduction was attributed to a 15% Drought Program vs. the 25% Program that was reflected in the Ten-Year Financial Plan.  FY09 operating revenues contributed $2.9 million and expenditure savings contributed the remaining $6.4 million

 

Mr. Bledsoe reported that the District was proposing a transfer of $1 million into the OPEB Trust Fund.  This would be the third year the District had funded the trust fund and would bring the fund balance to $8 million representing a 16% funding ratio, which was well ahead of schedule. 

 

Mr. Bledsoe identified and reported on two annual reserve fund replenishments.  The Capital Improvement Reserve would be replenished by $20 million, bringing the fund balance to $46 million.  This action was in compliance with the Board’s Reserve Policy.  The other replenishment was $.7 million to the Vehicle Replacement Fund. 

 

Director Burgh commented that he was pleased that the District was moving forward with funding the OPEB Trust Fund.  He also commended staff for the budget performance the past year.  

 

Referencing the customer recognition presentations earlier in the evening, President Campbell added that these water savings impact the District’s revenue source. 

 

MOTION:  Boatmun/Burgh to accept FY09 report on year-end financial results and 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.  The motion carried by a unanimous voice vote. 

 

 REPORTS FOR DISCUSSION

 

13.        Committee Report(s)

            a.   Finance Committee Post-Meeting Report (8/27/09)

 

President Campbell asked if there were any comments on the committee reports.  There were no comments. 

                 

14.        Schedule Future Meeting Dates and Times

 

Mr. Bishop reminded the Board that the next Board Study Session would be held on December 18.   

 

REPORTS

 

15.        General Manager

 

Mr. Bishop reported briefly on a meeting he attended with other general managers at the Water Research Foundation on September 15 in Denver.  He also reported that Water Conservation Manager Chris Dundon would be appearing on NBC’s Water Matters segment on October 20 regarding the drought situation and the District’s conservation program.  He also commended staff for their hard work and efforts over the past two weeks with tracking the legislative water bills in the Conference Committee. 

 

President Campbell commented that he also followed the bills very closely.  He also advised that he was in contact with Assistant General Manager (AGM) of Water Resources Greg Gartrell during this period and commended Dr. Gartrell for his efforts.    

 

16.        Legal Counsel

 

Mr. Coty did not have a report.

 

17.               Board Members

 

Director Boatmun reported on the Association of California Water Agencies (ACWA) Communications Committee meeting she had attended in Sacramento earlier that day.   She reported that a discussion took place concerning ACWA’s Centennial in 2011 and possible District participation.  Also discussed was the possibility of an ACWA Region holding a Public Service Announcement contest concerning water conservation.  She advised that Region 5 would hold a meeting in Walnut Creek on October 1 and 2.  Dr. Gartrell would be discussing Delta issues with Santa Clara Valley Water District’s Special Counsel Greg Zlotnick.  The next meeting of the ACWA Communications Committee would take place at the ACWA 2009 Fall Conference in San Diego on December 1.  A subcommittee meeting would be held prior to the full committee meeting. 

 

Responding to a question from Director Boatmun concerning distribution of educational materials for ACWA’s Save Our Water Program, Mr. Bishop replied that the District was distributing materials supporting its own conservation program. 

 

Director Anello did not have a report.

 

Vice President Wandry did not have a report. 

 

Director Burgh commented positively on the passing of a bond proposal for new capital facilities in the Pleasant Hill Recreation and Park District.  He also advised that he presented to the Pleasant Hill City Council on September 14.  He reported that he attended the Municipal Advisory Council (MAC) related to the Pleasant Hill BART Station Transit Village development on September 15; an interesting presentation was given at the meeting by the developer regarding the forecast for residential and commercial tenants.      

 

President Campbell thanked AGM of Engineering/Construction Steve Welch for filling in while Mr. Bishop was out of town.    

 

ADJOURNMENT

 

This meeting will be adjourned to a regular meeting of the Board of Directors scheduled for October 7, 2009, commencing at 6:30 p.m.

 

 

 

                                                                                                                                                        

                                                                                                Joseph L. Campbell, President

ATTEST:

 

                                               

Sharon L. Burris

District Secretary