CONTRA COSTA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING December 6, 2017 MINUTES

Transcription

1 CONTRA COSTA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING MINUTES CALL TO ORDER President Borba called to order a regular meeting of the Board of Directors of the Contra Costa Water District (District) at 6:31p.m., at 1331 Concord Avenue, Concord, the regular meeting place of the Board. ROLL CALL Directors Present: Directors Absent: Acting General Manager: Legal Counsel: District Secretary: Lisa M. Borba, President Connstance Holdaway, Vice President Ernesto A. Avila Bette Boatmun John A. Burgh None Stephen J. Welch Douglas E. Coty Mary A. Neher PLEDGE OF ALLEGIANCE President Borba led the pledge of allegiance. ADOPTION OF AGENDA Mr. Welch said the report for Agenda Item 7 regarding the storm repair project was modified following distribution of the agenda packet to include the names of associated subconsultants. The revised docket was provided to the Board and made available for the public at the back of the Board Room. The Board adopted the agenda by rule. PUBLIC COMMENT (Please observe a three-minute time limit) President Borba asked for public comments. There were none.

2 Page 2 CONSENT CALENDAR 1. Approve Directors' Service/Business and Travel Expenses a. Future Services - December b. Expenses-November 2017 c. Compensation - November Approve meeting minutes: a. November 1, 2017 b. November 3, Approve the warrant register dated December 7, Authorize execution of the Amendment to Memorandum of Understanding for the development of a Groundwater Sustainability Plan for the East Contra Costa portion of the Tracy Subbasin. President Borba asked if anyone wanted to remove an item from the consent calendar. No items were removed. President Borba asked the Board for questions and comments. There were none. President Borba asked for public comments on the consent calendar. There were none. MOTION: Boatmun/Holdaway to approve the consent calendar. unanimous voice. The motion carried by ACTION 5. Request for Modified Pressure Services at Reliez Terrace Subdivision in Pleasant Hill a. Adopt Resolution designating a Modified Pressure Service Area for the Reliez Terrace Subdivision in Pleasant Hill; and b. Authorize conditional modified pressure service agreements for the seventeen new lots to be created by the Reliez Terrace Subdivision in Pleasant Hill. Director of Engineering Rachel Murphy reviewed the background and location of the 1 7-lot subdivision. An assessment of the subdivision was performed that evaluated existing service pressure conditions and fire sprinkler requirements. The District determined that standard water pressure would not be available for the services to this subdivision. The Board was provided with the results and possible alternative solutions to provide the service to this area.

3 Page 3 A review of the criteria typically considered by the Board for modified pressure service agreements (MPSA) was provided. Because this area has been historically served, is zoned residential, and all other modified pressure service criteria has been met, this proposed MPSA was determined to meet these criteria. The Board discussed the many pre-existing modified pressure services in this portion of Pleasant Hill that were inherited when the District became the water service provider. With changes in building regulations and need for housing, additional building in this region is anticipated. In response to Director Boatmun, Ms. Murphy explained the types of infill development for future subdivisions would be determined by local zoning. In response to Director Boatmun, Ms. Murphy explained the City of Pleasant Hill was still reviewing the subdivision and that public comments provided during the study session had focused on parking. In response to Director Boatmun, Ms. Murphy explained that the service elevation for these homes was sufficient to meet the District's minimum pressure requirements to operate the fire sprinklers even without power. The Board expressed concerns related to being able to provide adequate water pressure to fixtures on upper floors of these residences and to ensure operability of home fire sprinkler systems even during loss of power. Director Avila explained that the developer was responsible to provide an adequate fire suppression system. In response to Director Boatmun, Ms. Murphy said the District had contacted East Bay Municipal Utility District (EBMUD) regarding the potential for EBMUD to service this area, which did not appear to be viable. EBMUD has similar MPSA criteria as the District. The Board requested staff to develop additional low pressure service criteria, which should consider the challenges and opportunities associated with higher density housing, and to review other water agencies' MPSA criteria. Staff will bring information to the Operations and Engineering ( O&E) Committee in January. The Board discussed concerns about MPSAs and potential impacts to public safety. Director Boatmun expressed concerns about the erosion of the District's Code of Regulations (Code) and noted that customers with standard water pressure sometimes complain about low water pressure. Director Boatmun suggested for the Board to hold off making a decision on this matter until staff provides the additional information, alternatives for managing MPSAs, and potential Code modification recommendations. Mr. Welch explained the subdivision development could not move forward without the District's approval for the full 17 homes. Director Boatmun discussed how running water on the first floor can greatly reduce water pressure on the second floor, which made her question the functionality of fire sprinklers. Mr. Welch explained that staffs evaluation verified the District can deliver the minimum pressure service to the finished floor elevation in this subdivision. With regard to impacts of a power outage, there would be enough water pressure for the fire sprinkler system. Documentation regarding the need for an internal booster pumping system to increase the water pressure for these homes, and the requirement for this booster pumping system to be maintained by the homeowner, will be recorded with the deeds.

4 Page 4 President Borba asked if the Board had additional questions and comments. There were none. President Borba asked for public comments. Mr. Peter Baldacci of Mt. Diablo View Associates, who is the developer of the Reliez Terrace Subdivision, reviewed the development process to date. The subdivision includes 10 singlestory and 7 two-story homes. The fire sprinklers are designed to operate only where the fire is located. The use of booster pumps is common in new home developments. Without the support of the District, the project will not be able to move forward. Potential buyers will be notified about the low water pressure and internal booster pump, which they have to maintain. Documents regarding the water pressure are filed with the deed, which will provide notification to future buyers. Mr. Baldacci noted there is a fire station located near this subdivision. He requested the Board's approval for the MPSA. Mr. Welch said the District's MPSA criteria had been met. The Board expressed concern that legislative changes were causing the District to modify its service criteria. Staff was requested to bring more historical information regarding the use of internal booster pump systems to the O&E Committee. In response to the Board, Mr. Baldacci said the real estate agent will provide the internal booster pump information with buyers and that the information will be included in a checklist for the escrow officer. Director Avila was glad the District plans to review MPSA criteria to determine possible Code changes needed to address future building needs. MOTION: Burgh/ Avila to adopt Resolution designating a Modified Pressure Service Area for the Reliez Terrace Subdivision in Pleasant Hill; and authorize conditional modified pressure service agreements for the seventeen new lots to be created by the Reliez Terrace Subdivision in Pleasant Hill. The motion carried by a voice vote (Ayes: Avila, Borba, Burgh, Holdaway; Noes: Boatmun). 6. Authorize execution of an agreement with Carbon Activated Corporation for Filter Media Cleaning and Replacement at Bollman, Randall-Bold, and City of Brentwood water treatment plants in an amount of $1,606,854, with an 8% change order authority of $128,549, for a total amount not to exceed $1,735,403. Mr. Welch said the District received three proposals, however, one proposal was received after the deadline and was returned unopened. This project includes cleaning of the filter media at the Bollman and Randall-Bold Water Treatment Plants and provides a more cost-effective method to manage filter media, with no impacts to delivered water quality. President Borba asked the Board for questions and comments. President Borba noted the District had performed a filter media cleaning pilot project in 2016, which demonstrated its effectiveness and potential cost savings.

5 Page 5 President Borba asked for public comments. There were none. MOTION: Boatmun/Holdaway to authorize execution of an agreement with Carbon Activated Corporation for Filter Media Cleaning and Replacement at Bollman, Randall-Bold, and City of Brentwood water treatment plants in an amount of $1,606,854, with an 8% change order authority of $128,549, for a total amount not to exceed $1,735,403. The motion carried by unanimous voice. 7. Award of Contract Storm Damage Repairs, Phase 1 a. Relieve Siteworks Construction, Inc. from its bid pursuant to Section 5101 of the Public Contract Code; b. Authorize a $2,163,713 increase in the FY18 Engineering Capital Budget to be funded from the Emergency Response Reserve; c. Authorize execution of a contract with Graniterock Company for the construction of the 2017 Storm Damage Repairs, Phase 1 Project in the amount of $1,947,883, with an 8% change order authority of $155,830, for a total amount not to exceed $2,103,713; and d. Authorize an amendment to the professional services agreement with SRT Consultants in the amount of $60,000, for a revised total amount not to exceed $440,000. Mr. Welch said there was one irregular bid and that there was no controversy regarding the project bids or potential award. When offered a full presentation, the Board declined the need for a formal presentation, as it was very familiar with the repair project. President Borba asked for Board comments and questions. There were none. President Borba asked for public comments. There were none. MOTION: Boatmun/ Avila to relieve Siteworks Construction, Inc. from its bid pursuant to Section 5101 of the Public Contract Code; authorize a $2,163,713 increase in the FY18 Engineering Capital Budget to be funded from the Emergency Response Reserve; Authorize execution of a contract with Graniterock Company for the construction of the Storm Damage Repairs, Phase 1 Project in the amount of $1,947,883, with an 8% change order authority of $155,830, for a total amount not to exceed $2,103,713; and Authorize an amendment to the professional services agreement with SRT Consultants in the amount of $60,000, for a revised total amount not to exceed $440,000. The motion carried by unanimous voice.

6 Page 6 8. Award of Contract- Canal Pumping Plants and Substations Rehabilitation Project a. Authorize execution of a contract with Tri-Technic, Inc., for the construction of the Canal Pumping Plants and Substations Rehabilitation Project, in the amount of $3,920,975, with a 12% change order authority of $470,517, for a total amount not to exceed $4,391,492; and b. Authorize an amendment to the professional services agreement with EETS, Inc. in the amount of $135,000, for a total revised amount not to exceed $450,000. Mr. Welch explained that the project was part of the District's untreated water rehabilitation master plan. Because the bids received were higher than the engineer's cost estimate, staff reevaluated the bid information and found that current market conditions were higher than reflected in the original engineer's estimate. Mr. Welch explained that electrical work was challenging for staff to estimate. Future engineer estimates related to electrical work will be more closely scrutinized and compared to the most current market cost conditions. The Board also discussed the potential impacts on bid pricing from unplanned events, such as the north bay fires, and noted that the bid totals in this instance were so close that staffs recommendation to proceed with award following the bid reevaluation made sense. As the operations and maintenance of the facility were the responsibility of the District, Mr. Welch confirmed that Reclamation would not reimburse the District for the work. Mr. Welch confirmed that the engineer's estimate was prepared by EETs, Inc., who did provide the District with excellent design work. President Borba asked for the Board for additional comments and questions. There were none. President Borba asked for public comments. There were none. MOTION: Holdaway/Boatmun to authorize execution of a contract with Tri-Technic, Inc., for the construction of the Canal Pumping Plants and Substations Rehabilitation Project, in the amount of $3,920,975, with a 12% change order authority of $470,517, for a total amount not to exceed $4,391,492; and authorize an amendment to the professional services agreement with EETS, Inc. in the amount of $135,000, for a total revised amount not to exceed $450,000. The motion carried by unanimous voice. DISCUSSION AND INFORMATION 9. Review and concur with the 2018 rate review requirements. Director of Finance Desiree Castello reviewed the annual rate review process conducted to ensure sufficient funding for the District's operating, capital, and debt service costs for A revenue increase of 6% was found to be required after considering cost reductions, all non-rate revenue sources, and the planned use of reserves. Proposition 218 notices were mailed on November 16, and the District had received nine protests to date. The cost of service rates

7 Page 7 calculation was reviewed. The 2018 rate review reflects changes from the Ten-Year Financial Plan that include cost reduction savings and projected revenue reductions. A review of estimated monthly increases to the District's average treated and untreated water customers was provided. The other revenue resources used to reduce customer costs were reviewed. The rate revenue increases were also reduced through the use of District reserve funds. The District's revenue-funded costs include operations and maintenance, debt service, and capital projects. Cost reductions implemented to reduce rate impacts were provided. The current and proposed residential customer charges were compared. The drawdown schedules for the projected treated and untreated water reserve balances based upon the Board's policy were reviewed. The proposed 2018 Facility Reserve Charge (PRC) was based upon the findings from the 2015 PRC study. The proposed PRC includes applicable increases for 3.8% annual inflation based on the Engineering News Record's calculation. A review of the District's other fees and charges that are based upon cost of service was provided. The proposed revenue increase will be considered by the Board on January 3, The rate review process schedule was provided. President Borba asked the Board for questions and comments. In response to Director Avila, Ms. Castello noted that only a portion of the PRC is subject to inflation, which was why the increase was below the 3.8% factor. President Borba asked for public comments. There were none. The Board acknowledged receipt of the report and concurred with the revenue requirement findings. President Borba thanked the customers that had provided concerns regarding the proposed increase, as it provides beneficial information to better assist individual customer needs. Director Avila thanked staff for the information and its work to provide customers with safe and reliable water service while meeting the challenges of maintaining the District's infrastructure and mitigating impacts from legislative mandates and outside agencies. REPORTS FOR DISCUSSION 10. Committee Report(s): a. Public Information and Conservation Committee Post-Meeting Report (10/25/17) b. Board of Supervisors - Transportation, Water, and Infrastructure Committee Post Meeting Report (11/7/17) 11. Schedule Future Meeting Dates and Times

8 Page 8 President Borba asked for comments on the committee reports. There were none. President Borba asked for future meeting dates and times. There were none. REPORTS 12. General Manager Mr. Welch reported that the State Route 4 Bypass Authority (Authority) completed the work to protect the District's Los Vaqueros pipeline at the State Route 4 interchange, which will allow the Authority to move ahead with its project. The District received the first official school lead testing request and anticipates receiving other school testing requests soon. He reviewed the lead testing plan process and said the Board would be notified of any positive results. If lead is found at a school, it is the school's responsibility to address any items of concern arising from the testing. In response to Director Avila, Mr. Welch provided an update for the Morgan Territory Road ribbon cutting, which was held on December 2 and included approximately 40 people. 13. Legal Counsel Mr. Coty reported on a recently decided California Supreme Court (Court) case related to Proposition 218 and the imposition of charges for groundwater extraction. The Court held that fees imposed for the extraction of groundwater were not subject to the requirements of Proposition 218; however, the Court remanded to the Appellate Court further consideration of the fees in light of Proposition 26. Since the Sustainable Groundwater Management Act included fee and charge requirements, including compliance with Proposition 218, the decision will likely impact groundwater sustainability agencies in the state, including the East County Groundwater Sustainability Agency. The case should not have any impact at this time on the District's rate setting process, as it does not rely on groundwater for significant supply. 14. Board Members Director Avila reported that he had met with the General Manager on November 27 and attended the Association of California Water Agencies (ACWA) Conference. The conference sessions were valuable, and he provided a summary of the rate structure workshop and the California Waterfix session. During the conference, he was able to meet with some of the Board of Directors from Santa Clara Valley Water District and Alameda County Water District regarding their partnerships in the Los Vaqueros Reservoir Expansion Project. He thanked staff for providing assistance to the Central Contra Costa Sanitary District (CCCSD) to resolve a water contamination issue that CCCSD had recently encountered.

9 Page 9 Director Burgh reported that he had attended the ACW A conference. While at the conference, he was able to meet with some of the Zone 7 Board of Directors. Since the last Board meeting, he had run into a couple of past District employees who sent holiday greetings to everyone back at the District. He thanked President Borba for the thoughtful condolence letter she sent to the family of Ruth Bancroft, who recently passed away. The rest of the Board concurred. Vice President Holdaway reported that she had met with the General Manager on November 16 and that she attended the ACW A conference. She said the conference provided a lot of good information and gave her the opportunity to meet with some of the District's potential Los Vaqueros partners. Earlier today she spoke to a fifth grade class participating in an educational field trip at the Randall-Bold Water Treatment Plant. The educator provided a demonstration of how water filtration works, which was well done and impressed the children. She was impressed with the knowledgeable questions from the students. She thought the program presenter did a great job educating and communicating with the children. Director Boatmun reported that she had attended the ACW A conference. She provided a summary of a presentation during the past ACW A Board presidents' breakfast about the impacts to agencies, the communities, and agency staff members from the recent northern and southern California wild fires. She attended the rate structure session and recapped some of the different rates structures used by other agencies that were reviewed. She attended the meetings for the ACW A Communications Committee and the ACW A Region 5 Membership and provided the highlights from those meetings. SCVWD' s comment letter recommending for the Water Fix to only consist of one tunnel was an item of discussion during the conference. President Borba thanked the Board members for attending the ACW A conference and noted that she had not attended the conference this year. She reported that she had meetings with the General Manager on November 21, November 28, and December 5. She reported that she completed the mandatory Sexual Harassment Prevention Training for Board members on November 30 and reminded the rest of the Board to take the mandatory training before December 15. She, along with Director Boatmun, had attended the Other Post-Employment Benefits Committee meeting and the Retirement Committee meeting on December 4. The new actuary's report included some new plan recommendations for the District to consider in the future, which will be brought to the Board on December 20.

10 Page 10 ADJOURNMENT At 8:00 p.m., President Borba adjourned the meeting. The regular next meeting of the Board of Directors will be on December 20, 2017, commencing at 6:30 p.m. in the Board Room located at Concord A venue in Concord. Lisa M. Borba, President Attest: