MINUTES

SANTA CLARA VALLEY WATER DISTRICT

BOARD OF DIRECTORS MEETING [1]

June 3, 2003 

(Paragraph numbers coincide with agenda item numbers)

 

            A regular meeting of the Board of Directors of the Santa Clara Valley Water District was held in the District Headquarters Boardroom, 5700 Almaden Expressway, San Jose, California, at 9:30 a.m., on June 3, 2003.

 

            1.  Board members in attendance were R. Kamei, R. Santos, L. Wilson, G. Zlotnick, and S. Sanchez, Chairperson presiding, constituting a quorum of the Board.  Director Estremera was absent; Director Judge arrived as noted below.

 

            Staff members in attendance were S. M. Williams, Chief Executive Officer, A. C. Bennetti, General Counsel, R. Callender, D. J. Chesterman, R. Davis, J. Fiedler, S. Fitts, N. Hsueh, S. Johnson, L. Keller, M. Klemencic, J. Micko, P. Ng, J. Peralez, M. Richardson, P. Romero, O. Martin Steele, W. Wadlow, and R. Yep.

 

            2.  Chairperson Sanchez opened the meeting for public comment on any subject not on the agenda.  There was no one present who wished to speak.

 

            Chairperson Sanchez moved the agenda to Item 22.

 

            22.  The Board considered the attached letter and attachments received May 29, 2003, from Ms. Nancy Couperus, Adobe Creek Watershed Group (Group), requesting support to secure a CALFED grant to address flooding, erosion, and environmental concerns in Reach 5 of Adobe Creek (Los Altos Hills).

 

            Ms. Susan Mandle, Los Altos Hills resident, informed the Board that the Swanson plan was used for the CALFED Grant Proposal because residents favored its use of rock riprap and meandering channel design.  She said that the Group understood that the final plan would not be the Swanson plan, but rather a compilation of previous creek designs and new ideas from all stakeholders.  She acknowledged that there is a great deal of District work that could be integrated into the project and that the District had been helpful thus far in providing projected costs, exact project location, and pollution monitoring.  She expressed concern that since the Swanson plan had already been rejected by the District, its inclusion in the grant proposal may be perceived as negative; and asked that the Board realize that once the District plan was no longer available, the grant process became the only avenue of relief for residents and the Swanson plan was the only immediately available alternative.  She requested that the Board provide a letter of support for the grant.

 

            Councilmember Breene Kerr, Town of Los Altos Hills (Town), said that it was unfortunate that the Town had rejected District plans for Adobe Creek, but had done so because they were unacceptable to residents.  He said that he understood that the District did not want to enter into additional redesign costs and clarified that the Group was seeking grant funding so that no District funds would be required for the process.  He said that the Group, which consisted of residents from both the City of Los Altos and the Town of Los Altos Hills, represented a model for community involvement and was dedicated to working cooperatively to resolve flooding and erosion issues along Adobe Creek.  He stated that the Group had his full political support and that he expected favorable support from other Town councilmembers as well.  He assured the Board that by working cooperatively a project could be designed to satisfy the needs of all stakeholders; and urged the Board to prepare a letter of support to the State Water Resources Control Board.

 

            Mrs. Nancy Couperus, Los Altos Hills resident, stated that Group membership included residents from Adobe Creek Reaches 5, 6, and 7; and informed the Board that representatives from the Los Altos Hills Open Space Committee were present at the meeting.  She informed the Board that the Group had received letters of support from the Town of Los Altos Hills, the City of Los Altos, the Mid Peninsula Open Space District, Santa Clara Valley Audubon Society, Hidden Villa, California Native Plant Society, 20 Reach 5 creek-side residents, and approximately 20 families in the Robinwood Pool Association.  She explained that a letter of support from the District would give the proposal additional strength.  She assured the Board that the grant application did not propose a particular project design; and stated that all interests, including the District, needed to come together in order to find a successful resolution to Adobe Creek issues.

 

            Mr. J. Couperus, Los Altos Hills resident, encouraged the Board to provide the requested letter of support and stated his concurrence with the comments made by Ms. Mandle, Councilmember Kerr, and Mrs. Couperus.

 

            Ms. Elaine Dauber, Los Altos Hills resident, informed the Board that she first became involved in Adobe Creek flooding and erosion issues in 1992 and stated that she wished the process could start over again.  She said that she understood the District had criteria upon which it prioritized its projects, and acknowledged that only a small number of homes would be removed from the floodplain as a result of a project on Reach 5.  She suggested the Board consider the potential additional threat resulting from trees or fences falling into the creek, and suggested that bank stabilization and channel widening be considered as part of a solution.  She said that the District currently operates without an appropriate methodology for issues such as this, and suggested that the Board consider adopting a policy statement addressing projects that do not meet the one percent flood control criteria.  She suggested that work on Adobe Creek could provide additional restoration opportunities and would set a good example for future community involvement groups.  She urged the Board to provide a letter of support.

 

            Director Zlotnick distributed the attached proposed letter to Town Mayor Fenwick; and requested the Board authorize the CEO to open negotiations with the Town and City Managers and direct staff to prepare a letter of support for the grant proposal.

 

            It was moved by Director Zlotnick, seconded by Director Santos, and unanimously carried that Director Zlotnick be authorized to send the attached letter to Town Mayor Fenwick; that the CEO be authorized to open negotiations with the Town and City Managers; and that the Board direct staff to prepare a letter of support.  Directors Estremera and Judge were absent.

 

            Chairperson Sanchez returned the agenda to Item 3.

 

            3.  The Board considered the public hearing for the annual report recommending flood control benefit assessment rates for fiscal year 2003–2004, and the attached resolution establishing land use categories, confirming a levy of benefit assessments to meet duly authorized debt obligations for fiscal year 2003-2004 in flood control zones of Santa Clara Valley Water District; in accordance with Resolution Nos. 86-54, 86-55, 86-56, 86-57, and 90-7, and authorizing a procedure for correcting assessments.  An explanation is contained in the attached agenda memorandum.

 

            It was moved by Director Zlotnick, seconded by Director Santos, and unanimously carried that Resolution No. 03-44, ESTABLISHING LAND USE CATEGORIES, CONFIRMING A LEVY OF BENEFIT ASSESSMENTS TO MEET DULY AUTHORIZED DEBT OBLIGATIONS FOR FISCAL YEAR 2003—2004 IN FLOOD CONTROL ZONES OF SANTA CLARA VALLEY WATER DISTRICT; IN ACCORDANCE WITH RESOLUTION NOS. 86-54, 86-55, 86-56, 86-57, AND 90-7, AND AUTHORIZING A PROCEDURE FOR CORRECTING ASSESSMENTS, be adopted.  Directors Estremera and Judge were absent.

 

            Board Linkage:

 

            4.  The Board noted the Santa Clara Valley Water Commission (Commission) draft minutes of March 5, 2003, and draft agenda for June 18, 2003; and considered the committee recommendations.  An explanation is contained in the attached agenda memorandum.

 

            Director Zlotnick noted that he and Director Wilson would be unable to attend the June 18, 2003 meeting.  He requested that staff provide a copy of their response to recommendation No. 2 to the Board before distributing it to the committee.  (Board member request no. R 03‑0327)

 

            It was moved by Director Zlotnick, seconded by Director Wilson, and unanimously carried that the Board endorse the proposed agenda and approve the committee recommendations.  Directors Estremera and Judge were absent.

 

            5.  The Board considered an update on District sponsored legislative proposals AB 698 (Lieber) PCE Claims—Liability, AB 896 (Diaz) Public Employees Retirement Benefits, AB 1218 (Dutra) Underground Storage Tanks—Claims—Performance Based Contracts, SB 1002 (Sher) Santa Clara Valley Water District; and considered position recommendations on SB 312 (Machado) Urban Landscape Water Conservation Act of 2003, AB 314 (Kehoe) Desalination, AB 334 (Goldberg) Water Softener Local Ordinances, AB 1300 (Laird) Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002: Expenditures: Annual Report, and SB 318 (Alpert) Urban Water Suppliers: Desalinated Water.  An explanation is contained in the attached agenda memorandum.

 

            Mr. Ben Gale, Santa Clara County Department of Environmental Health, explained that the County had no interest in taking over the local oversight program.  He informed the Board that stakeholders opposed SB 1002 because they feared it would expand District program activities; and explained that although the District is to be congratulated for its work, stakeholders are resistant to another authority overseeing tank installation and inventory.

 

            It was moved by Director Zlotnick, seconded by Director Santos, and unanimously carried that the Board adopt positions of support for SB 312 (Machado) Urban Landscape Water Conservation Act of 2003, AB 314 (Kehoe) Desalination, AB 334 (Goldberg) Water Softener Local Ordinances, AB 1300 (Laird) Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002:  Expenditures:  Annual Report and SB 318 (Alpert) Urban Water Suppliers: Desalinated Water; relative to SB 1002 (Sher) Local Oversight Program for Leaking Underground Storage Tank Cleanup (Santa Clara County), the Board endorsed option No. 1, sunsetting the District Local Oversight Program for the Leaking Underground Storage Tank Cleanup Fund program next fiscal year, with the understanding that negotiations will continue.  Directors Estremera and Judge were absent.

 

            Chairperson Sanchez moved the agenda to Item 8.  Director Judge arrived.

 

            8.  The Board considered a second perchlorate treatment plant at the City of Morgan Hill.  An explanation is contained in the attached agenda memorandum.

 

            Mr. Jim Ashcroft, City of Morgan Hill (City), informed the Board that the well at Peak Avenue only produced seven gallons of water per minute and was being taken off-line while the City evaluated other options.  He explained the City strived to protect public health beyond action level requirements and was therefore soliciting District assistance for Nordstrom well treatment.  He said the City relied on use of the Nordstrom well to meet peak summer water demands and wanted certainty that the water was safe.  He informed the Board that the City had returned Olin Corporation’s settlement check because acceptance of the check released Olin from any future liability.  He explained that since the Board’s previous action authorized spending up to $1 million dollars, the City hoped to solicit $300,000 for well head treatment at its Nordstrom site, subject to reimbursement from Olin Corporation.

 

            It was moved by Director Zlotnick, seconded by Director Kamei, and unanimously carried that the Board authorize the CEO to decline the City of Morgan Hill’s request to install a second perchlorate treatment plant at the Nordstrom well site, but rather work with the City to reach an agreement that assures District reimbursement from the City, should Olin fail to reimburse costs.  Furthermore, upon the City’s concurrence, the Board authorized staff to proceed with acquisition of a treatment facility at the Nordstrom site and assist the City to pursue a regional Board order.  Director Estremera was absent.

 

            Chairperson Sanchez returned the agenda to Item 6.

 

            Chief Executive Officer:

 

            6.  The Board considered the annual monitoring report for Executive Limitations Policy EL-4, Financial Planning/Budgeting (continued from May 20, 2003).  An explanation is contained in the attached agenda memorandum.

 

            Ms. Olga Martin Steele, Assistant Administrative Officer, distributed the attached revised monitoring report.

 

            It was moved by Director Zlotnick, seconded by Director Santos, and unanimously carried that the Board accept the report as reasonable interpretation of, and adherence to, Policy EL-4, Financial Planning/Budgeting.  Director Estremera was absent.

 

            7.  The Board considered the fiscal year 2003–2004 budget resolutions:  i) approving and adopting Santa Clara Valley Water District budgets for fiscal year 2003–2004 and ii) providing for levy of ad valorem real property taxes in fiscal year 2003–2004 to meet part of contract cost of water importations from State of California (continued from previous meetings).  An explanation is contained in the attached agenda memorandum.

 

            The Board requested that staff revise the transmittal letter to include the District mission statement and mention of GATSBY 35 compliance; add a closing statement that acknowledges the time and commitment of Board and staff to prepare the budget; and make the following revisions to the letter:

 

            Pages 1 and 4:  Assure that the operating outlays are consistent between Page 1, Paragraph 2, and Page 4, Paragraph 6.

 

            Page 2:  Add bullets that show District sponsorship of National River Clean Up Day, the Adopt-a-Creek program, and increased use of recycled water; change the first and last bullets to include a note that explains the figures cover the first three years of the program; and on the last bullet reference that grant funding is “up to” the dollar amounts shown.

 

            Page 3:  Paragraph 2, include a statement that the capital program has already achieved ISO certification.

 

            Relative to the introductory section of the budget report, the Board requested that staff make the following changes:  Page 3, Paragraph 1, eliminate the statement that references the county’s diverse and healthy economy; Page 4, include language from the new District Act relative to environmental stewardship and specify that the Independent Monitoring Committee only provides oversight on Measure B programs; Page 7, include language from the new District mission statement; and Page 8, explain that funding is “up to” the dollar amounts shown.

 

            It was moved by Director Wilson, seconded by Director Zlotnick, and unanimously carried by roll call vote that Resolution Nos. 03-45, APPROVING AND ADOPTING SANTA CLARA VALLEY WATER DISTRICT BUDGETS FOR FISCAL YEAR 2003–2004, and 03-46, PROVIDING FOR LEVY OF AD VALOREM REAL PROPERTY TAXES IN FISCAL YEAR 2003–2004 TO MEET PART OF CONTRACT COST OF WATER IMPORTATIONS FROM STATE OF CALIFORNIA, be adopted, and that the CEO be authorized to send the transmittal letter and budget document as amended.  Director Estremera was absent.

 

            9.  Mr. Stanley M. Williams, CEO, informed the Board that the Santa Clara County Board of Supervisors would consider the District’s budget at 2:30 p.m. on June 17, 2003.  He noted that this conflicted with the Board of Directors next regular meeting.

 

            Mr. Jim Fiedler, Assistant Operating Officer, distributed the attached Elements of Collaborative Agreement Report.

 

            10.  The Board noted the attached CEO bulletin for the week of May 24, 2003.

 

            Consent Calendar:

 

            The Board considered the consent calendar.  Item 12 was removed for discussion.

 

            11.  Resolution establishing appropriation limit for 2003–2004 fiscal year budget.  An explanation is contained in the attached agenda memorandum.

 

            13.  Resolution designating June 1 through June 30 as Gay, Lesbian, Bisexual, and Transgender Pride Month.  An explanation is contained in the attached agenda memorandum.

 

            14.  Agreement with Athens Administrators for workers' compensation claims administration services.  An explanation is contained in the attached agenda memorandum.

 

            15.  Budget adjustments for water utility financing, transfers, and Central Valley project.  An explanation is contained in the attached agenda memorandum.

 

            16.  Delegation of authority to invest public funds and accept District investment policy and resolution delegating authority to deposit and invest funds and considering the annual statement of District investment policy.  An explanation is contained in the attached agenda memorandum.

 

            17.  Report of bids received for the Lower Silver/Thompson Creeks sediment removal project, stage 2, between Tully and Quimby Roads (San Jose).  An explanation is contained in the attached agenda memorandum.

 

            Mr. Marty Grimes, Gay/Lesbian Awareness Committee Chairperson, invited the
Board to attend the District diversity event recognizing Gay/Lesbian Pride Month on Wednesday, June 25, 2003.  He reported that event speakers included Patricia Martel, San Francisco Public Utilities Commission General Manager, and San Jose City Councilmember Ken Yeager, and included a luncheon from 11:30 a.m. to 1:00 p.m.  He informed the Board that today Councilmember Yeager raised the rainbow flag above San Jose City Hall for the third consecutive year.

 

            It was moved by Director Kamei, seconded by Director Judge, and unanimously carried by roll call vote that consent calendar Items 11, and 13 through 17 be approved; and that Resolution Nos. 03-49, ESTABLISHING APPROPRIATION LIMIT FOR 2003–2004 FISCAL YEAR BUDGET; and 03-50, DESIGNATING JUNE 1 THROUGH JUNE 30 AS GAY, LESBIAN, BISEXUAL AND TRANSGENDER PRIDE MONTH, be adopted.  Director Estremera was absent.

 

            Chairperson Sanchez returned the agenda to Item 12.

 

            12.   The Board considered the resolution designating June 19 as Juneteenth Celebration Day.  An explanation is contained in the attached agenda memorandum.

 

            In response to Director Santos, Chief Administrative Officer Paul Romero confirmed that he would provide a list of annual diversity celebrations to the Board.

 

            It was moved by Director Santos, seconded by Director Zlotnick, and unanimously carried by roll call vote that Resolution No. 03-48, DESIGNATING JUNE 19 AS JUNETEENTH CELEBRATION DAY, be adopted.  Director Estremera was absent.

 

            Approval Items:

 

            18.  The Board considered the Annual Water Utility Enterprise Report, April 2003 (continued from previous meetings) and the attached resolutions:  i) making findings regarding exemption of water and tax rate changes from environmental assessments; ii) determining groundwater charges for water year 2003–2004; iii) determining surface water charges for water year 2003–2004; and iv) establishing rate schedule for delivery of treated water for water year 2003–2004.  An explanation is contained in the attached agenda memorandum.

 

            Director Kamei stated for the record that San Martin residents opposed increased rates for residents whose water is contaminated.

 

            It was moved by Director Zlotnick, seconded by Director Judge, and unanimously carried by roll call vote that Resolution Nos. 03-51, MAKING FINDINGS REGARDING EXEMPTION OF WATER AND TAX RATE CHANGES FROM ENVIRONMENTAL ASSESSMENTS; 03-52, DETERMINING GROUNDWATER CHARGES FOR WATER YEAR 2003–2004; 03-53, DETERMINING SURFACE WATER CHARGES FOR WATER YEAR 2003–2004; and 03-54, ESTABLISHING RATE SCHEDULE FOR DELIVERY OF TREATED WATER FOR WATER YEAR 2003–2004, be adopted.  Director Estremera was absent.

 

            19.  The Board considered the Clean, Safe Creeks and Natural Flood Protection Special Tax Summary Report and Rate Setting for Fiscal Year 2003–2004, and the attached resolution providing for levy of the special tax pursuant to the Clean, Safe Creeks and Natural Flood Protection Measure in the combined flood control zone of the Santa Clara Valley Water District and authorizing a procedure for correcting special tax amounts.  An explanation is contained in the attached agenda memorandum.

 

            It was moved by Director Zlotnick, seconded by Director Santos, and unanimously carried by roll call vote that Resolution No. 03-55, PROVIDING FOR LEVY OF THE SPECIAL TAX PURSUANT TO THE CLEAN, SAFE CREEKS AND NATURAL FLOOD PROTECTION MEASURE IN THE COMBINED FLOOD CONTROL ZONE OF THE SANTA CLARA VALLEY WATER DISTRICT AND AUTHORIZING A PROCEDURE FOR CORRECTING SPECIAL TAX AMOUNTS, be adopted.  Director Estremera was absent.

 

            Board of Directors:

 

            20.  The Board considered the proposed response to letter received May 14, 2003, from Kip Brundage, Santa Clara County Farm Bureau, regarding agricultural water discounts.  An explanation is contained in the attached agenda memorandum.

 

            It was moved by Director Zlotnick, seconded by Director Kamei, and unanimously carried that the Chair be authorized to sign the proposed letter.  Director Estremera was absent.

 

            21.  The Board referred to staff the attached letter received May 21, 2003, from Florence La Riviere, Citizens Committee to Complete the Refuge, regarding endorsement of proposed agreement with Oakland Museum to expand published series of Santa Clara Valley watershed maps.

 

            23a.  Director Kamei reported on her attendance at the Santa Clara County Pollution Prevention Committee meeting and at CH2M Hill’s presentation on the Malcolm Baldridge award.

 

            23b.  Director Zlotnick reported on his attendance at the recent tour with Congressmembers Honda, Lofgren, and Visclosky; and at the following meetings: Association of California Water Agencies Board of Directors; a luncheon meeting with John Muller, Regional Water Quality Control Board; Independent Monitoring Committee (IMC); and Guadalupe/West Valley Flood Control and Watershed Advisory Committee.  He distributed the attached items:  Summaries from the IMC, Lower Peninsula, and Guadalupe/West Valley meetings; a report from Central West Basin General Manager Darryl Miller relative to desalination; the IMC report on Measure B; and copies of a letter from the Metropolitan Water District to California Governor Grey Davis, relative to the Colorado River.

 

            23c.  Director Santos reported on his recent trip to Foster City to view vegetation removal equipment; and on his attendance at a recent water tour at Llagas Creek.  He requested that staff come back with a list of all District properties and holdings and their current uses (Board member request no. R-03-0324); and a list of employment areas within the District that are not diversified including a summary of potential barriers (Board member request no. R‑03-0328).  He requested that staff include the date of the next regular meeting on all future advisory committee summaries.  (Board member request no. R-03-0325)

 

            23d.  Director Wilson reported on his attendance on the tour with Congressmembers Honda, Lofgren, and Visclosky, and at the Malcolm Baldridge presentation hosted by CH2M Hill.  He informed the Board that he had received a newsletter from the City of San Jose, which omitted the District as a partner in the recycled water pipeline effort.

 

            23e.  Chairperson Sanchez distributed the attached response to the Gilroy Dispatch editorial “Raising the rate for poisoned water” dated May 27, 2003.  He requested that the response be rewritten to express a stronger rebuttal, and that the final response be signed by all Board members.

 

            24.  Director Kamei requested that staff investigate the high nitrate levels that are being reported in San Martin, near the Flying Lady restaurant and the San Martin golf course.  (Board member request no. R-03-0329)

 

            25.  Ms. Lauren L. Keller, Clerk/Board of Directors, read the new Board member requests into the record.

 

            26.  The Board noted the attached 2003 planning calendar.

 

            27.  The Board noted the attached activity calendars for the months of June and July 2003.

 

            Adjourn:

 

            28.  Chairperson Sanchez adjourned the meeting at 2:15 p.m., to the next regularly scheduled meeting at 9:30 a.m. on June 17, 2003, in the District headquarters building Boardroom, 5700 Almaden Expressway, San Jose, California.

 

 

 

                                                                                      Lauren L. Keller

                                                                                      Clerk/Board of Directors

 

Approved:

 

Date: