CONTRA COSTA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING April 18, 2018 MINUTES
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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 6:31 p.m., at 1331 Concord Avenue, Concord, the regular meeting place of the Board. ROLL CALL Directors Present: Directors Absent: General Manager: Legal Counsel: District Secretary: Lisa M. Borba, President Connstance Holdaway, Vice President Ernesto A. Avila Bette Boatmun John A. Burgh None Jerry Brown Douglas E. Coty Mary A. Neher PLEDGE OF ALLEGIANCE Director Boatmun led the pledge of allegiance. ADOPTION OF AGENDA Mr. Brown said there were no changes to the agenda, and 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. CONSENT CALENDAR 1. Approve Directors' Service/Business and Travel Expenses a. Future Services - April/May 2018 b. Expenses-March 2018
2 Page2 c. Compensation - March Approve March 21, 2018 meeting minutes. 3. Approve the warrant register dated April 19, Authorize execution of the Memorandum of Understanding with Central Contra Costa Sanitary District and Santa Clara Valley Water District for refinery recycled water exchange evaluation. ~ Approval of Local Agency Formation Commission A.pplication for Annexation of Spinnaker Cove Development, and Cost Share Terms for Memorandum of Agreement for Canal Replacement Project &.- Adopt Resolution No for application to Ll.rFCO for anne~mtion of the Spinnaker Cove Development; and &:- Authorize the General Manager to enter into a Memorandum of Agreement vt'ith Spinnaker Cove for Canal Replacement Project cost share. President Borba asked if anyone wanted to remove an item from the consent. Director Burgh removed Agenda Item No. 5 regarding Spinnaker Cove for separate consideration. President Borba asked for Board questions and comments on the remaining consent items. There were none. President Borba asked for public comments. There were none. MOTION: Boatmun/ Avila to approve consent calendar Agenda Item Nos The motion carried by a unanimous voice vote. ACTION 5. Approval of Local Agency Formation Commission (LAFCO) Application for Annexation of Spinnaker Cove Development, and Cost Share Terms for Memorandum of Agreement for Canal Replacement Project a. Adopt Resolution No for application to LAFCO for annexation of the Spinnaker Cove Development; and b. Authorize the General Manager to enter into a Memorandum of Agreement with Spinnaker Cove for Canal Replacement Project cost share. Director Burgh said that an from Division 2 customer, Mr. Leland Frayseth, requested the removal of the item from the consent calendar for separate consideration and asked for the individual Board votes to be reflected in the meeting minutes. President Borba confirmed that the votes would be noted by Board member name if the vote was not unanimous. Mr. Brown confirmed for the record that the Board was provided with the . The Board requested a moment to review the .
3 Page 3 Director Burgh said many of the concerns appeared to be related to land use. In response to Director Burgh, Mr. Brown confirmed that the District did not have authority over land use matters and that the recommended action was focused on the potential annexation of Spinnaker Cove into the District's area of service. President Borba asked for Board questions and comments. There were none. President Borba asked for public comments. There were none. MOTION: Burgh/Boatmun to adopt Resolution No for application to LAFCO for annexation of the Spinnaker Cove Development; and authorize the General Manager to enter into a Memorandum of Agreement with Spinnaker Cove for Canal Replacement Project cost share. The motion carried by a unanimous voice vote. Director Burgh said he did not agree with Mr. Frayseth's comment about the District's Board meetings being hostile. Director Boatmun said that was Mr. Frayseth' s personal perception. Director Avila concurred with Director Burgh. President Borba said Mr. Frayseth was always welcome to attend meetings, as are all members of the public. PRESENTATION 6. Citizen's Initiative Water Bond: Water Supply and Water Quality Act of Mr. Brown provided Jerry Meral, Ph.D.' s professional background. Dr. Meral, Director, California Water Program, Natural Heritage Institute, provided a review of the 2018 November Water Bond Act Initiative and the potential benefits to the District. Proposition 1 funds were expected to be allocated beginning in July 2018 by the California Water Commission. A review of the regulations related to the funding was provided. The funding for the other components of Proposition 1 was expected to be completed by Proposition 68, which is primarily a park bond measure, will be included on the June 2018 ballot. The 2018 Water Bond Act Initiative, which is also called Proposition 72, is expected to be added on the November ballot when the measure is qualified. The small area of overlap between the two propositions includes safe drinking water, restoration of the Salton Sea, wastewater recycling, and groundwater sustainability, which are all currently severely underfunded. A review was provided of the state's general fund debt service ratio, which would be less than 4% with the inclusion of the proposed June Proposition 68 water bonds. The low debt service ratio allows the state to be awarded good ratings from the bond rating agencies. This water bond has been under development for last two years. Many water agencies have provided their thoughts and concerns during its development. The Bay Area Regional Reliability (BARR) partnership activities are important. The bond includes language to appropriate $250,000,000 for BARR related to surface water storage for region-wide benefits pertaining to drought supply
4 Page4 reliability, drinking water quality, and emergency storage. A detailed review was provided of the various programs and program funding included in the measure. Several key funding categories, including safe drinking water, wastewater for disadvantaged communities, flood management, Oroville dam repair, Friant Kem Canal, and Salton Sea, were reviewed. The water bond calculation estimates 1,765,000 acre-feet of water could be generated each year from the bond. A 40-year history of water bond voting was provided where only one water bond had not been passed. Governor Brown has not taken a position on the measure. A review of the strong intersector support of the measure was provided. Polling taken as of April 2018 showed a 66% approval of the bond. Voters said they tended to believe what the National Wildlife Federation and their local water district said about water measures. In response to Director Boatmun, Dr. Meral said the bond funds would be appropriated directly to the state agencies that would use existing regulations, where possible, to distribute the money to applicants. The measure was developed to reduce confusion between it and Proposition 1 and does not allow funds to be used for construction of Delta facilities. President Borba thanked Dr. Meral for his presentation and for including a funding alternative to a water tax that will help the disadvantaged communities. In response to President Borba, Dr. Meral said the Sierra Club of California was opposed to the water bond because it includes funds for repair of the Friant Kem Canal. President Borba thanked Dr. Meral for working with the District's staff and discussed the benefits to the BARR. In response to President Borba, Dr. Meral said that the bonds generally fund capital project outlay and allow a portion of the funds to be set aside where the interest drawn on those funds could be used to pay for operational costs. In response to President Borba, the qualification of the measure so it could be included on the November ballot was expected on April 24. The Board thanked Dr. Meral for his presentation. REPORTS FOR DISCUSSION 7. Committee Report(s): a. Operations and Engineering Committee Post-Meeting Report (03/14/18) 8. Schedule Future Meeting Dates and Times Mr. Brown said the Board Study Session was scheduled on Friday, April 20, at 8:30 a.m. and would be held in the Delta Conference Room at 2411 Bisso Lane in Concord. Director Boatmun said the California Special Districts Association, Contra Costa Chapter Chair wished to meet with her but the date had not been set.
5 Page 5 REPORTS 9. General Manager Mr. Brown reported that the East Bay Leadership Council Board of Directors called a special meeting to be held on Friday, April 20, to consider taking a position on Proposition 68, Proposition 72, and Regional Measure 3. Regional Measure 3 was related to toll bridge fee hikes. As part of improving District facility security, new identification cards are being issued. The Board will be provided with the new cards. 10. Legal Counsel Mr. Coty provided an update regarding the City of Antioch's litigation against the Department of Water Resources (DWR), in which the District is named as a real party. The court overruled each DWR argument against Antioch's First Amended Complaint. DWR is now required to file its answer by April 23. District legal counsel will review the First Amended Complaint to determine if it is necessary to amend the District's previously filed response. 11. Board Members Director Burgh reviewed an article regarding the support of the California Waterfix by southern California water agencies and noted that the cost of the project continues to increase and is much higher than previously reported. Senator DeSaulnier has voiced objections regarding the proposed toll bridge fee increase. He reported that he had attended the April 16 California Special Districts Association, Contra Costa Chapter (CCSDA) meeting that featured a presentation regarding the challenges of creating policies related to cannabis use and the workplace. Director Burgh said he would miss the May 2 Board of Directors meeting. Vice President Holdaway did not have a report. Director Boatmun reported that she attended the Retirement Plan Cost of Living Adjustment Ad Hoc Committee meeting on April 13 where various adjustment options were reviewed. On April 16 she attended the CCSDA meeting. Mr. Brown confirmed the Board would be provided with the CCSDA meeting presentation slides. The legislation report included a review of AB 2916 related to property tax revenue allocations for qualified fire protection districts. LAFCO is considering dissolving three special districts. The ACW A Scholarship Committee met on April 16, which was at the same time as the CCSDA meeting, and made its scholarship award selections. She attended the April 17 East Bay Leadership Council- Water Task Force meeting, which included a Proposition 1 review by Marguerite Patil. Director Avila said he was concerned about the identification of areas within the City of Concord related to proximity to District facilities for cannabis operations and asked staff to follow the
6 Page 6 matter. Related to recent media coverage ofhaywired California, he mentioned work done by the District related to seismic reliability. President Borba reported that she met with East Bay Leadership Council Executive Committee Chair Patty Deutsche on April 10. On April 11 she attended the Public Information and Conservation Committee meeting. She met with the General Manager on April 12 and April 17. On April 12 she attended the Contra Costa Canal bridge ribbon cutting. CLOSED SESSION 12. Public Employee Performance Evaluation as allowed under Government Code Section 54957, Employee: General Manager. At 7:35 p.m. President Borba announced the Board would move into a closed session and the matter related to employee evaluation and would include two additional attendees, Assistant General Manager - Administration Ron Jacobsma and Human Resources and Risk Manager Sonja Stanchina. RECONVENE FROM CLOSED SESSION 13. Report on closed session. At 8:01 p.m. President Borba report that the Board did not take a reportable action. ADJOURNMENT At 8:02 p.m., President Borba adjourned the meeting. The next meeting of the Board of Directors would be a Study Session on Friday, April 20, 2018, commencing at 8:30 a.m. in the Delta Conference Room located at 2411 Bisso Lane in Concord. The next regular meeting of the Board of Directors will be on May 2, 2018, commencing at 6:30 p.m. in the Board Room located at 1331 Concord Avenue in Concord. Lisa M. Borba, President Attest:
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