[00:07] Speaker 1: Is Your Agenda Item 1A? Revised calendars were provided to the board, posted online and are available in the back of the room.
[00:17] Speaker 2: Very well. Board members said there are no opposition to our comments. The board will adopt the agenda by rule. We'll now move to the public comment section of the agenda. This section is provided so that the public may express general comments on any item not already listed on tonight's agenda for up to 3 minutes in length for an individual or up to 6 minutes in length of representing a group. If you'd like to provide comments on matters listed on the agenda, please complete a blue card located at the back of the boardroom and submit it to the District Secretary to be called when that specific item is being considered. Written comments that were received by 4:30pm were provided to each director, and copies are available to the public at the boardroom entrance. Are there any members of the public in the boardroom who would like to provide a public comment on items not listed on the agenda?
[00:58] Speaker 3: If so, please come to the podium now.
[01:03] Speaker 2: Seeing none. Next section of the agenda is a review of the consent calendar items 1 through 8 which are noted on the agenda. These items have been reviewed by the General manager and to her knowledge, there is no opposition to the action. The items can be acted on in one consolidated motion as recommended, or may be removed from the Consent calendar for separate board action at the request of any person. Board members, do you have any questions
[01:26] Speaker 3: or comments on any of these eight items?
[01:29] Speaker 2: Are there any members of the public who would like to provide public comment on any specific item? If so, please come to the podium now. Seeing none. Board members, is there a motion for consent items one through eight?
[01:42] Speaker 4: I'll move approval
[01:45] Speaker 5: second.
[01:45] Speaker 2: All right, so we have a motion by Director Holdaway and a second by Vice President Martinez. We have a motion before the board for consideration.
[01:53] Speaker 3: Is there any public comment regarding the
[01:55] Speaker 2: motion before the board for consideration?
[01:56] Speaker 3: If so, please come to the podium now.
[02:00] Speaker 2: See none. Directors, all those in favor say aye.
[02:03] Speaker 1: Aye.
[02:04] Speaker 2: Motion carries unanimously. Thank you again for the report. We'll now move to the action section of the agenda. Item nine is to adopt resolution number 26 014, approving the fiscal year 27 and fiscal year 28 budget totaling $506,583,339, including re budgets and the amount not to exceed $12,454,200 from the fiscal year 26 capital budget. General Manager Rachel Murphy.
[02:38] Speaker 1: All right. On June 3rd, CCWD staff completed a comprehensive review of of the proposed 2027 and 2028 budgets highlighting the operational priorities and initiatives that we have in the upcoming two year budget, capital investments, staffing needs, anticipated revenues as well as we discussed some external cost drivers that were influencing the resulting budget. Director of Finance Herman Williams is will conduct a presentation this evening, an abbreviated presentation of the budget that was presented at the June 3rd meeting and we'll be looking for the Board's consideration of that budget at the conclusion of this presentation.
[03:26] Speaker 3: Thank you. Herman, how are you?
[03:28] Speaker 6: All right. Good evening President Abila, Members of the
[03:30] Speaker 7: Board this evening we're here to request budget adoption for the fiscal year 27
[03:35] Speaker 6: and fiscal year 28 budget following the budget workshop conducted at the previous Board meeting.
[03:41] Speaker 7: The key messages for this budget is our continued forward looking approach and commitment
[03:46] Speaker 6: to providing reliable water service to the communities that we serve.
[03:49] Speaker 7: This budget balances rising operating costs while strategic capital investments from the 10 year capital improvement Plan while also managing debt
[03:58] Speaker 6: service obligation to ensure the most cost effective use of available funds.
[04:03] Speaker 7: The budget strengthens CCWD's workforce development efforts
[04:07] Speaker 6: by investing in programs to support a skilled and resilient workforce.
[04:12] Speaker 7: And this budget also addresses emerging challenges
[04:15] Speaker 6: including mitigation requirements under the 2024 Incidental
[04:19] Speaker 7: Take Permit and rising chemical pricing. All right, here we look at a
[04:26] Speaker 6: comparison to the fiscal year 26 budget. Fiscal year 27 reflects a 4% overall increase driven by a 6% increase in operating costs and a 1% increase in capital spending.
[04:39] Speaker 7: The GM contingency and LV endowment remain
[04:43] Speaker 6: funded at a million dollars in both of the fiscal years and at the
[04:47] Speaker 7: end of fiscal year 26, the endowment
[04:49] Speaker 6: will be funded at $2 million of the requested 6 million.
[04:53] Speaker 7: We anticipate to fund fully fund the endowment by 2030. The vehicle reserve increases by 200,000 for fiscal year 27 bringing it to 2.2 million. And this is to account for higher
[05:06] Speaker 6: costs associated with moving to and transitioning to zero emission vehicles.
[05:15] Speaker 7: As we look at fiscal year 28, we're projecting a 3% increase in operating costs due to inflation but an overall
[05:22] Speaker 6: 3% decrease in the overall budget. And this is driven by a debt service decline down to 21 million for fiscal year 28 due to the payoff and the maturity of the Series T bonds in fiscal year 27.
[05:39] Speaker 7: Here we summarize the operating budget with the 6% increase for 27. This includes running the distribution system, ensuring
[05:47] Speaker 6: we are able to operate and maintain the water system and also comply with federal regulations.
[05:53] Speaker 7: Significant increases for fiscal year 27 include
[05:56] Speaker 6: the treatment chemicals at 47% over 26 and liability insurance estimated at 10 to 11% over fiscal year 26.
[06:08] Speaker 7: All right, the capital budget for fiscal
[06:10] Speaker 6: year 27 has an increase of 1% from the fiscal year 26 budget and is in alignment with the Capital Improvement Program.
[06:18] Speaker 7: Several major projects will continue in this budget cycle including the Canal Replacement Program, the Contra Costa Canal Title Transfer Project,
[06:27] Speaker 6: the Golden Muscle Study, as well as the LV Intake Gates Refurbishment project.
[06:36] Speaker 7: All right, this slide summarizes CCWD staffing requests from the prior meeting. The budget request includes going from 329.75
[06:47] Speaker 6: full time equivalent personnel to 337.5 personnel in fiscal year 27.
[06:54] Speaker 7: This includes 4.75 permanent employees as well
[06:59] Speaker 6: as three project personnel for the canal replacement project.
[07:05] Speaker 7: For fiscal year 28, we are requesting
[07:08] Speaker 6: three additional project positions for canal replacement, bringing our total FTE count to 340.5.
[07:19] Speaker 7: All right, here we look at some of our external cost drivers for this budget. Like we said, chemical costs came in
[07:25] Speaker 6: at 47% higher for fiscal year 27. General liability was up 11%. Purchase water costs are up 6%. And the golden muscle in research and responses at 4, $400,000 for the study as well as 400,000 for annual operations.
[07:45] Speaker 7: Looking at some of the regulatory cost
[07:47] Speaker 6: drivers, we start with the incidental take permit, the purchase of the mitigation credit of 4.2 million.
[07:53] Speaker 7: We have annual fish monitoring requirements at
[07:56] Speaker 6: approximately $300,000 a year.
[07:58] Speaker 7: And we also look at the CARB
[08:00] Speaker 6: Advanced Clean Fleet's impact on our budgets. We requesting a fleet supervisor to help us manage those requirements. We also have charging infrastructure costs at $200,000 to date. As we expand that program, we look into the future. We'll probably have additional costs related to the charging structures.
[08:19] Speaker 7: We also are seeing the vehicle purchase
[08:21] Speaker 6: costs are 30 to 50% higher than the diesel costs.
[08:26] Speaker 7: We're requesting a senior chemist or microbiologist
[08:29] Speaker 6: for a lab across accreditation in fiscal year 27. We also have federal accessibility regulations related to ADA requirements for all our digital content.
[08:40] Speaker 7: And lastly, we had water quality reports
[08:42] Speaker 6: are now required to be issued twice a year as opposed to once a year.
[08:46] Speaker 3: Herman, just for the record, just so
[08:47] Speaker 2: we're clear, external cost drivers basically are
[08:52] Speaker 3: those elements that are outside of our control that we must comply with, correct? Right.
[08:56] Speaker 2: Okay, thank you.
[09:03] Speaker 6: All right, looking at the rebudgets from fiscal year 26 to 27, maximum rebudgets
[09:09] Speaker 7: requested are up to 12 and a half million.
[09:13] Speaker 6: And this covers approximately 23 capital programs.
[09:17] Speaker 7: The drivers for these requests are permitting
[09:19] Speaker 6: timelines Priority projects and equipment delays.
[09:27] Speaker 7: All right, this is one of my last slides and it outlines the budget development schedule. We started with the development of the key assumptions and strategic initiatives in January and February.
[09:37] Speaker 6: We had the department presentations at the last meeting and tonight we are here to ask for consideration of approval.
[09:46] Speaker 7: So the recommended action is to adopt
[09:48] Speaker 6: resolution number 20, approving the fiscal year 27 and fiscal year 28 budgets, including
[09:54] Speaker 7: re budgets not to exceed 12.454 million
[09:59] Speaker 6: from the fiscal year 26 capital budget. This concludes my presentation. I'm happy to answer any questions.
[10:06] Speaker 2: Thank you, Herman for that presentation.
[10:08] Speaker 3: Board members, do you have any questions or comments?
[10:11] Speaker 5: Just want to say thank you Herman for the brief summary of what we have couple weeks ago at a board meeting. And I want to just again thank the staff for all their hard work and I'm in support of this recommended action. So thank you.
[10:27] Speaker 2: Urban.
[10:27] Speaker 3: I think the thing that kind of amazes me, if you go to slide
[10:31] Speaker 2: number nine,
[10:41] Speaker 3: You start looking at these external cost drivers. You know, our general manager has gone a long way to educate us that whenever we look at an operating cost of about a million dollars a year, that basically translates to about a 1% increase in rates. So if you were to total up all the external cost drivers associated impacting us, it's beyond the request you're actually asking for tonight. So what is, what's happening is that this district is doing what it can to reduce cost in other areas, to mitigate and try to minimize the impact of these external cost drivers to the organization. Isn't that a true fact?
[11:18] Speaker 6: That is a fact.
[11:19] Speaker 2: Yeah.
[11:19] Speaker 3: So it's one of the things that most folks don't realize is we do the very best. And staff does an incredible job of making sure that as Vice president Martinez had noted, that we try to really take care of the overall fiscal well being of the organization. But when you have these absolute costs that just cannot be controlled, it's very impactful, you know, and we do our best to keep those rates under control. It's very much appreciated in a very big way. So I wanted to pass on also my congratulations on doing the best you can to deal with this. I think the other thing that's really important, right. Is the fact that when you look
[11:52] Speaker 2: at the positions that are being requested, right.
[11:54] Speaker 3: Therefore the complying with these external factors, but also to make sure that we're working on our biggest reliability improvement for the district that we've ever taken on. Right. These are positions we're going to need because the program we are about to Undertake is a 10 year plus projects.
[12:08] Speaker 2: So making sure we're staffed up to
[12:10] Speaker 3: deal with the myriad of different issues that are coming our way is important. And because of the experience we have at Los Vaqueros and Los Vaqueros expansion, these are well thought out positions that
[12:20] Speaker 2: are necessary to make sure that we
[12:22] Speaker 3: can take care of the project and program successfully. Just. Vice President Martinez.
[12:26] Speaker 5: Yeah. If I might add to President Avila's comment, the President administration at the federal level has, you know, has created tariffs and uncertainty and all kinds of sectors.
[12:37] Speaker 8: Right.
[12:37] Speaker 5: And so that I think everyone at home is suffering with the same issues at a smaller level. So just, you know, compound that to an agency this size where we have a lot of different other cost drivers that impact, you know, this organization. So, yeah, it just adds to the, to the uncertainty of where we're going to go with, you know, with our rates. But how can we continue to mitigate, you know, the burden of burning our customers with these increases in pricing for chemicals and vehicles and fuel? I mean, diesel is $8 a gallon and you know, most of the equipment that we use, you know, out in the field is diesel driven because of the reliability factor. So I mean that when you put that all together, it's amazing what we do as a small organization to keep the cost down, to keep our ratepayers from, you know, feeling the impact that they're already feeling at home.
[13:31] Speaker 3: Great comment, Vice President Martinez. I think the other thing that kind
[13:34] Speaker 2: of amazes me is we're about to
[13:36] Speaker 3: consider the approval of a budget for a two year budget. It's half a billion dollars, a little over half a billion dollars. Pretty amazing in terms of what it takes to provide reliable water service to our customers. Right. But I think the one thing the public should note regarding tonight is that we had a very detailed review of the budget at our last board meeting
[13:53] Speaker 2: where we went department by department to
[13:54] Speaker 3: make sure that we understood what those costs were and that these costs made sense overall for the board. So I wanted to acknowledge the hard
[14:02] Speaker 2: work that all of you did at the staff level with your department presentations. That gives us the opportunity to consider
[14:07] Speaker 3: this as quickly as we are this evening.
[14:09] Speaker 2: Thank you, Herman. All right, we've got a presentation by staff. Is there any public comment regarding the presentation that was made this evening?
[14:17] Speaker 3: If so, please come to the podium now.
[14:21] Speaker 9: Okay.
[14:21] Speaker 2: CNN board members, is there a motion to adopt Resolution 26 014?
[14:27] Speaker 5: So moved.
[14:28] Speaker 8: Motion. Yeah.
[14:29] Speaker 2: Director Fitzpatrick.
[14:30] Speaker 7: Thanks.
[14:30] Speaker 2: A motion.
[14:30] Speaker 5: Second.
[14:31] Speaker 3: Second by Vice President Martinez.
[14:33] Speaker 2: We have a motion before the board for Consideration. If there's any. If any member of the public like to provide a public comment regarding the
[14:40] Speaker 3: motion, please come to the podium now.
[14:43] Speaker 2: Seeing none. Board members, all those in favor say aye.
[14:46] Speaker 5: Hi.
[14:47] Speaker 3: Well done, everybody. Good job. Congratulations on a job well done. You too, Herman. You too. General Manager Rachel Murphy.
[14:54] Speaker 2: All right, we'll now move to agenda item number 10. Item number 10 is to authorize an amendment to the professional Services Agreement with GEI consultants for dam monitoring and title transfer support services in the amount of 414,000 in fiscal year 27, with an option for continuing services in the amount of 384,000 in fiscal year 28 for a revised total agreement amount not to exceed 2,417,000.
[15:18] Speaker 3: General Manager Rachel Murphy.
[15:20] Speaker 1: All right, so I will provide a few talking points related to this item. We don't have a formal presentation, but we use consultant services to ensure that our dam safety program complies with a variety of monitoring, reporting and emergency preparedness requirements. We have facilities that are under the jurisdictional oversight of the California Department of Water Resources, Division of Safety of Dams, United States Bureau of Reclamation, as well as a couple of reclamation districts pertaining to our levees. And that consultant team provides technical expertise analyzing dam instrumentation, readings and data, preparing various mapping inundation, mapping emergency action plans, and helping work with and train staff to. To ensure that we stay fresh on the requirements. The consultant team. This consultant team has been supporting a variety of technical reviews that are required to support jurisdictional oversight transfer from the Bureau of Reclamation to the Division of Safety of Dams for Contraloma and Martinez in conjunction with the overall tidal transfer effort. And we competitively selected this consultant to provide dam monitoring services and the title transfer services. We are recommending a sole source amendment to this contract, a second sole source amendment to this agreement to cover both continuing title transfer activities as well as continuity in our dam safety program monitoring support that they've been providing. So the recommend and you will. The Operations and Engineering Committee will get a more detailed review of the damage safety program at the upcoming Operations and Engineering Committee to talk through the work plan for the upcoming year. So the recommended action is as noted for the Professional Services Agreement amendment with GEI consultants.
[17:14] Speaker 9: Great.
[17:14] Speaker 2: Thank you for that presentation.
[17:15] Speaker 3: Board members, do you have any questions or comments? I think the one thing that's really very compelling is they've been doing the work for us for some time. And frankly, I think the thing that's always been beneficial about GEI is the fact that they have former Division of
[17:28] Speaker 2: Safety of Dams chiefs that actually Work
[17:30] Speaker 3: for them at the staff level. So in terms of anticipating potential issues, it's good to have that level of knowledge internally. So it's definitely a substantial public benefit for this consultant.
[17:40] Speaker 2: So. All right, are there any members of the public would like to provide a comment regarding this presentation?
[17:44] Speaker 3: If so, please come to the podium now.
[17:48] Speaker 2: All right, seeing none board members, is there a motion to authorize an agreement amendment with GEI consultants?
[17:53] Speaker 4: I'll move approval.
[17:55] Speaker 2: Okay, motion by Director Holdaway.
[17:57] Speaker 8: I second.
[17:58] Speaker 2: Second by Director Fitzpatrick. So we have a motion and a second before us. Is there any public comment regarding the motion before us for consideration?
[18:07] Speaker 3: If so, please come to the podium now.
[18:11] Speaker 2: Seeing none board members, all those in favor say aye.
[18:14] Speaker 5: Aye.
[18:15] Speaker 3: Motion carries. Unanimously.
[18:16] Speaker 2: We'll now move to agenda Item number 11. Item number 11 is to authorize individual procurements for fiscal year 27 and fiscal year 28, routine goods and services for the not to exceed amounts listed on attachments one through four at a total amount not to exceed 28,366, 316,000 for fiscal year 27, and 28,676,000 for fiscal year 28.
[18:43] Speaker 3: Just for clarify, clarify this.
[18:44] Speaker 2: So fiscal year 27, it's $28,316,000.
[18:49] Speaker 3: General Manager Rachel Murphy.
[18:51] Speaker 1: All right, so our next presentation will also be by Director of Finance Herman Williams. There'll be a little bit of a theme this evening following the board's approval of the fiscal year's 2027 and 2028 budgets. This item requests approval of a variety of goods and services needed to support our operations for the upcoming budget cycle. The attachments, as was noted, detail the individual vendors, service type and and amounts, the requested amounts for tonight's consideration, and the presentation tonight will summarize that request.
[19:25] Speaker 3: Herman, how are you again? Again, Doing well. All right. You on a roll?
[19:29] Speaker 7: Two out of three. We're almost there. All right, so a comprehensive list of vendors providing routine goods and services over the general manager's delegated authority is prepared and presented to the board.
[19:42] Speaker 6: Board annually for approval in one single action.
[19:45] Speaker 7: That's what this is for this evening. This year, we're asking for authority approval
[19:48] Speaker 6: for fiscal year 27 as well as fiscal year 28.
[19:52] Speaker 7: We had some significant improvements in our solicitation process in this year, including expanded vendor outreach and community events, as well
[20:00] Speaker 6: as some vendor events that we participated in.
[20:03] Speaker 7: Purchasing forums. We also moved to an electronic platform,
[20:08] Speaker 6: Planet Bids, and held a vendor open house workshop to help with the transition
[20:13] Speaker 7: to the new platform. Fiscal year 27 and fiscal year 28 budgets that were just approved has sufficient funding for the authority requested this evening. All right, we'll start with attachment one. These are items that are procured in our invitation to bid process where it's
[20:33] Speaker 6: the lowest responsible responsive bidder is awarded for the goods or services. These are just cost impact only.
[20:41] Speaker 7: Increases requested for fiscal year 27 to 28 include facility security operations, canal liner
[20:48] Speaker 6: repairs as well as expanded diving services in those fiscal year period.
[21:00] Speaker 7: All right, Attachment two. These are also items that are procured in our invitation to bid process where
[21:05] Speaker 6: the vendor will bid for various items.
[21:08] Speaker 7: This is in house.
[21:09] Speaker 6: We call this our market basket where it will have most purchases are for
[21:13] Speaker 7: stores, warehouse and P card purchases for
[21:16] Speaker 6: crews and administrative staff and these items usually include brass, electrical hardware and office supplies.
[21:30] Speaker 7: All right, Attachment three. These are items that are procured in
[21:33] Speaker 6: our request for proposal solicitation similar to
[21:37] Speaker 7: the ITB process, but this process includes
[21:39] Speaker 6: a technical evaluation component and cost is not the sole criteria for selection in this situation.
[21:46] Speaker 7: Increases requested for fiscal year 27 include
[21:49] Speaker 6: electrical services as well as tree care services.
[21:55] Speaker 7: All right, Attachment four. These are items procured by our sole source solicitation. They are goods or services are proprietary in nature to the vendor or the
[22:06] Speaker 6: vendor has unique and specific knowledge of a process or practice of ccwd. So in this situation the project manager requests to only use this sole vendor and they have to provide a significant justification for doing that.
[22:20] Speaker 7: Increases requested for fiscal year 27 include Vegetation management activities. I think this is the addition to
[22:28] Speaker 6: the weed abatement that was added as a scope of work to Civic Corp.
[22:35] Speaker 7: All right, Attachment five. This is the attachment where we provide
[22:39] Speaker 6: the justifications for the sole source items. Like I said, their products or service is preparatory in nature, unique and specific to knowledge of CCWDs, including maybe completion of a prior project or a phase of a project.
[22:53] Speaker 7: It also includes the compatibility of equipment replacement parts or accessories. Also items used as part of a
[23:00] Speaker 6: pilot or a program, a trial program can be used as a sole source justification as well.
[23:10] Speaker 7: Okay, Attachment six. We have requested that departments provide support for year to year increases in the
[23:17] Speaker 6: requested goods or service that is over $50,000 and those are all in attachment six.
[23:22] Speaker 7: Most of the increases focused on program expansion and increased operation and capital project
[23:27] Speaker 6: for fiscal year 27.
[23:29] Speaker 7: They include increased road repairs at Las
[23:31] Speaker 6: Vaquero's watershed, the implementation of a more formalized electrical maintenance program, increased capital budget for the Loop Canal Liner, replacement docking, underwater infrastructure projects at lv, and additional tree trimming needed at Matco.
[23:50] Speaker 7: Okay, here we have the summary of the request this evening by procurement types. We are asking for $28.3 million in
[23:58] Speaker 6: authority for fiscal year 27, and that is a $1 million increase over fiscal
[24:03] Speaker 7: year 26 and a $28.7 million ask
[24:06] Speaker 6: for fiscal year 28.
[24:11] Speaker 7: The recommended action is for the board to approve the fiscal year 27 and fiscal year 28 items and vendors included in the attachments to the docket in
[24:20] Speaker 6: amounts not to exceed the 28.3 million and the 28.6 million for fiscal school year 28. That concludes my presentation. I'm happy to answer any questions.
[24:29] Speaker 5: Thank you, Herman. Let the record show that President Avila left the boardroom due to an emergency. So I'll be continuing on with the meeting. Thank you for the presentation. Board member, do you have any questions on this presentation? All right. I want to just thank you again for doing a great job, Herman. And I do have a question about the delegated authority number 150,000 for the general manager. Because we discussed, I think, a couple years back of increasing that amount. And I just want to make sure that the cadence for that is still going on the right track or if we need to increase that delegated amount.
[25:07] Speaker 1: I appreciate the comment. We did look at that and increased it to the 150,000 several years ago. Now I haven't looked at it. The team hasn't looked at it again recently. So we. We will complete that analysis and bring it to the finance committee to see if there is a business case or rationale for further adjusting the delegated authority level.
[25:28] Speaker 9: Okay.
[25:29] Speaker 5: Thank you. Thank you very much. Are there any members of the public who would like to provide a comment on this item? If so, please come to the board one at a time. Seeing none board members, is there a motion to authorize the fiscal year 2027 and 2028 routine goods and services?
[25:45] Speaker 4: A move approval?
[25:46] Speaker 8: I second.
[25:47] Speaker 5: We have a motion by Director Holdaway and a second by Director Fitzpatrick. Any member of the public who would like to make a comment on the motion. Seeing none directors, all in favor say aye. Motion carries unanimously. On to item number action. Item number 12 is to authorize the purchase of water treatment and aquatic chemicals from vendors listed on the attached bid and cost summary in the amount not to exceed 7,503,000 for fiscal year 27. General Manager Richard Murphy.
[26:24] Speaker 1: All right. Director of finance Herman Williams is back to do our next presentation. Another purchase that is needed to support operations pertains to our water treatment and aquatic chemicals. Given the magnitude of this item, we typically handle it separately versus including it within our routine goods and services. There have been some chemical price decreases in several categories which partially offset more significant price increases in other categories. We've also adjusted the quantity of our treatment chemicals based on anticipated operations and Director of Finance Herman Williams will review all of that in summary fashion this evening.
[27:07] Speaker 7: All right. All right, Herman, more time we'll jump in for purchase of the treatment chemicals for fiscal year 27. Unfortunately, we are unable to get a
[27:17] Speaker 6: two year commitment on treatment chemical purchases as the volatility in the market, so we have to bring these every year.
[27:25] Speaker 8: All right.
[27:25] Speaker 7: CCWD solicits water treatment chemicals through the invitation to bid process whereas we award
[27:32] Speaker 6: the goods or services to the lowest responsible responsive bidder.
[27:36] Speaker 7: For fiscal year 27 we requested 25 chemicals with 12 treatment and 13 aquatic chemicals. We had 5 treatment chemicals bid through the Bay Area chemical consortium, the BACC. It is an informal cooperative made up of 65 Bay Area water and wastewater agencies to cooperatively purchased chemicals used in
[27:59] Speaker 6: the treatment of water.
[28:00] Speaker 7: CCWD's investment in chemicals through the BACC
[28:03] Speaker 6: requested for fiscal year 27 is approximately 3.8 million.
[28:08] Speaker 7: There are also volume changes due to treatment process changes, most significantly the conversion
[28:14] Speaker 6: at Randall Bolt Treatment Plant from chlorine
[28:17] Speaker 7: gas and aqueous ammonia to sodium hypochlorite
[28:20] Speaker 6: and liquid ammonium sulfate or operational safety.
[28:24] Speaker 7: Also, the transition from pilot testing to full scale implementation of Earth Tech at
[28:30] Speaker 6: the treatment plant in city of Brentwood was to improve water performance and water quality out there.
[28:38] Speaker 7: The estimated quantities reflect anticipated use of fiscal year 27. All right, starting with the good news, this table displays the cost of care chemicals in fiscal year 27 compared to
[28:51] Speaker 6: the bids received for fiscal year 26.
[28:53] Speaker 7: It also shows the volume needs for
[28:55] Speaker 6: fiscal year 27 compared to the prior year.
[28:58] Speaker 7: Of the 12 treatment chemicals procured, there were pricing decreases in six chemicals at
[29:03] Speaker 6: an average of 8% when compared to fiscal year 26 pricing.
[29:07] Speaker 7: The most significant decreases were for the budget are cationic polymer and and liquid
[29:14] Speaker 6: oxygen at 10.1% and 7.1% respectively.
[29:22] Speaker 7: Next we look at the cost increases
[29:23] Speaker 6: for fiscal year 27.
[29:25] Speaker 7: All of the aquatic chemicals listed on
[29:27] Speaker 6: page two of the attachment had cost increases ranging from 2.5% up to 33.6%.
[29:34] Speaker 7: There were also price increases in six of the treatment chemicals at an average
[29:38] Speaker 6: of 17.5% when compared to fiscal year 26 pricing.
[29:44] Speaker 7: We have the same analysis. Here we look at the increases in cost and volume requests for fiscal year 27. The most significant cost increases for fiscal year 27 was aluminum sulfate at 47% and sulfuric acid at 22%. The volume increases in sodium hypochlorite and liquid ammonia reflects the conversion at the
[30:07] Speaker 6: Randall Bolt treatment plant for safer chemicals.
[30:13] Speaker 7: Okay. Overall, the request of 7 and a half million is 47% increase from the fiscal year 26 requests of 5.1 million, but only 26% increase on the adjusted
[30:24] Speaker 6: budget approved by the board at the last meeting on June 3rd. That's 6 million.
[30:29] Speaker 7: We reached out to neighboring agencies and and our chemical prices are in line
[30:33] Speaker 6: with those received by the BACC as well as other local agencies.
[30:38] Speaker 7: Our recommendation this year includes approval of two vendors for each chemical to provide
[30:44] Speaker 6: flexibility and availability for any supply chain issues that might come.
[30:51] Speaker 4: Okay.
[30:52] Speaker 7: Our recommended action is to award Fiscal Year 27 Water treatment Chemical bids to
[30:57] Speaker 6: the customer companies listed on the bid
[30:59] Speaker 7: and cost summary at the indicated bid. Unit price for total authority not to exceed $7,503,000.
[31:09] Speaker 6: This concludes my presentation. I'm happy to answer any questions.
[31:12] Speaker 5: Thank you, Herman. Board members, do you have any comments or questions on this item? You may not have the answer to this, but I know that Earthtech is one of the chemicals that is used to somewhat controlled golden muscles.
[31:26] Speaker 9: Right.
[31:26] Speaker 5: But are there any other chemicals that we're looking at that are not on this list that we might be getting adding to the list
[31:36] Speaker 1: to address the golden mussels? Not that I'm aware of that there aren't additional chemicals at least in play at this time. There's different treatment technologies but not additional chemicals, at least at this point in time.
[31:51] Speaker 5: So mainly mostly like maintenance, cleaning the screens more often than that.
[31:55] Speaker 1: Different types of filtration systems. UV is something that is being pilot tested by some agencies to look and see how that might help with golden muscle control. So different types of other interventions.
[32:13] Speaker 7: Okay.
[32:14] Speaker 6: All right.
[32:14] Speaker 5: Well, thank you for that. Thank you.
[32:15] Speaker 3: Arman.
[32:16] Speaker 5: Are there any members of the public who would like to make a comment on this item? So please come to the volume one at a time. Seeing none. Board members, there are a motion to authorize the purchase of water treatment and aquatic chemicals.
[32:28] Speaker 8: I'll make the motion.
[32:29] Speaker 5: I'll second by Director Fitzpatrick and second by Director Holdaway. Are there any comments on this motion by the public? Seeing none. Directors all in favor say aye. Motion carries unanimously. On to action item number 13. Adopt resolution number 26 015, authorizing CCWD to enter into a financial assistance agreement with the Office of Local Defense Community Cooperation General manager Richard Murphy.
[33:00] Speaker 1: Thank you. Our final presentation this evening is not by the Director of Finance, Herman Williams. It is by Katy Kelly or Grant specifically. Specialist. The request tonight is to authorize CCWD entering into a federal funding agreement with the Office of Local Defense community cooperation, or OLDCC. This funding will offset about $1.3 million in consultant costs associated with the Canal Replacement Program to facilitate field investigations on the Military Ocean Terminal Concorde Base. Tonight's item, I do want to note, exemplifies the work being done by a number of staff members to strengthen existing partnerships with not only the folks at MACO, but back in D.C. to identify and pursue new funding sources and facilitate implementation of the Canal Replacement Program.
[33:55] Speaker 5: All right. Hi, Kelly. How you doing today?
[33:57] Speaker 9: Good. It's Katie.
[33:58] Speaker 10: Katie, Good evening, Vice President Martinez and members of the Board. Tonight's presentation is for authorizing a financial assistance agreement with the Office of Local Defense Community Cooperation. The Office of Local Defense Community Cooperation, or oldcc, operates under the Department of War and provides financial assistance for nominated activities to support readiness and resiliency of military installations. The Military Ocean Terminal Concord or matco, has been identified as a priority military installation. Additionally, the Canal Replacement Program, or crp, contributes to motco's resiliency and readiness by reducing inundation risk, improving water supply resiliency to support firefighting capabilities, and providing an opportunity for for improved access for the installation. Because of this, nexus, staff pursued a partnership with MOTTCO last summer to pursue financial assistance from oldcc, and this partnership directly resulted in the Canal Replacement Program being nominated by MOTTCO to receive OLDCC financial assistance in April of this year. Financial assistance from OLDCC will provide funding funding for site investigations within mottcode to support 30% design for a Canal Replacement Program. Site investigations will include geotechnical evaluations, aerial surveying, potholing and soil corrosivity testing. The information obtained from these activities will help determine the pipeline alignment, appropriate corrosion protection measures and other design elements for the portion of CRP through motco. The findings will be summarized in a site investigation report that will directly benefit the CRP design team and will also provide MOTCO with subsurface information for future planning and asset management. Funding will be provided through a financial assistance agreement that is executed between CCWD and OLDCC. The grant will begin in August of 2026 and all work must be completed within 18 months by January 2028. The total agreement amount is $1.4 million with 1.3 million in cost in grant share from OLDCC and approximately $100,000 in CCWD cost share the grant will offset consultant costs for site investigations within MOTCO and ccwd. Labor and grant administration costs will serve as the required CCWD cost share. Reporting requirements for the grant include quarterly and annual reports along with a final project report and deliverables that must be provided by the end of the grant term. Include a program performance questionnaire and brochure, the final site investigation report, and any topo survey and GIS data generated as part of the project. The grant is anticipated to offset up to $1.3 million in consultant costs for a canal replacement program. CCWD will provide the required 10% cost share of approximately $100,000 through CCWD labor and grant administration costs. The anticipated schedule for the grant includes execution of a funding agreement in July 2026, completion of site investigations by spring 2027, submittal of the final site investigation report in January 2028, and completion of closeout documentation by spring 2028. The recommended action for this agenda item is to adopt resolution number 2615 authorizing execution of a funding agreement with OLDCC. This concludes my presentation. Happy to answer any questions.
[38:12] Speaker 5: Thank you, Katie. Board members, do you have any questions on this item? Well, thank you for all the work that you've done. Thank you for leveraging this relationship so that we can benefit from from funding and so hopefully we can continue not just on this particular site, but other other locations during in the canal placement program that can benefit from this type of relationship. Thank you so much. Are there any members of the public who would like to make a comment on this item? Seeing none. Board members, is there a motion to adopt Resolution 26 015?
[38:45] Speaker 4: I'll move approval.
[38:46] Speaker 5: I second motion by Director Holdaway, second by Director Fitzpatrick. Is there any comment on the motion by the public? Seeing none. Director is all in favor say aye.
[38:58] Speaker 1: Aye.
[39:00] Speaker 5: All right, this motion carries unanimously. We will now move to the reports for discussion portion of the agenda. Number 14 is the operations and Engineering Committee post meeting report of May 21, 2026. Do any board members have any questions or comments on this report? Item number 15, upcoming meeting requests and schedule changes. Do any board members have any meeting requests or schedule changes? We will now move on to the report section of the agenda. General Manager Rachel Murphy.
[39:34] Speaker 1: All right, a couple of updates this evening. The first related to a project out in east county, the East Cypress Road widening project that is being implemented by the city of Oakley and its interface with the Contra Costa Canal in that location. So they are completing the road widening in phases to deal with utilities including the canal, and so the contractor for the city's project has successfully shifted traffic over to the new road which is now half widened. They've moved the traffic over which will now allow them to complete the second phase of the project. I'm sure they call it something different, but the second half of the project which they will remove our box culvert that goes under the road, put in the new pipe and then complete the second half of the road widening over our new pipe. So that work is starting in earnest this week. The contractor is installing stop logs or in essence removable barriers into a couple of our structures out there to allow them to isolate, dewater and safely work in the area. So they will complete the pipeline work and related work through this construction season and then finish the road widening through 2027. So they are continuing on schedule. It is a complex and multi stage project to complete all of that work out in Oakley. Secondly, next Tuesday we talked a little bit about Golden Muscles already, but the Senate Natural Resources Committee will be holding a hearing to discuss, among other things, Assembly Bill 2032, which is the golden mussel bill that we are co sponsoring. Of Importance, Assembly Bill 2032 will provide needed permission, permit streamlining and exemptions and other provisions to help expedite the research that we are working to launch and various management actions related to golden missile infestations. President Avila will again join assembly member Ransom and a representative from San Luis Delta Mendota Water Authority to provide testimony during that committee hearing. So that is on Tuesday. And then lastly for my schedule I will be headed to Washington D.C. on Saturday to attend an association of Metropolitan Water Agencies Board of Directors meeting on Sunday. The two kind of key priorities for the AMRA Board for this year is continuing to work on an update to their strategic plan and beginning recruitment for a new CEO. The current CEO is stepping down at the end of June. I've been asked to to be part of the selection committee for the new CEO and the plan is to have them onboarded in the fall. So in addition to that I'll be attending the American Waterworks Association Annual Conference on Monday and Tuesday and conducting legislative visits with our representatives on Wednesday. An additional meeting I'll highlight and related to the earlier presentation is an opportunity that is coming together for me to meet with the Office of Local Defense Community Cooperation Headquarters Leadership to provide an opportunity to brief them on, you know, our water district, this base and the synergies and shared interest between their base and readiness of that facility with what we are trying to do with the canal replacement program. So I'll be back in the area on Wednesday evening, back in the office on Thursday morning. I'll remain engaged in CCWD business while I'm gone. In the event of any incidents or operational emergencies, Assistant General Manager Kyle Ushandesko will be here and be leading those efforts. And that concludes my report.
[43:30] Speaker 5: All right, thank you, Legal counsel Doug Cody.
[43:34] Speaker 3: Thank you, Vice President Martinez. I have no report for you this evening.
[43:38] Speaker 5: Okay, Board members, please provide your report when called. Director Fitzpatrick.
[43:44] Speaker 8: On June 13th. On Saturday, I attended Central Sands 80th anniversary party. It was nice to see Director Martinez and board member Avila there, as well as staff, and it was a good time. I didn't get to bring my child, but it looked like a good family event. So nothing further report other than that.
[44:08] Speaker 5: All right, thank you, Director Holdaway.
[44:10] Speaker 4: I just have one report. I had a meeting with the general manager on Monday the 15th.
[44:15] Speaker 5: Alrighty. On June 4th, I attended the mayor's conference in Walnut Creek. We got a presentation from the Whitepoint Express CEO Eve Burge. That organization distributes food to nonprofits, and they get their food from like, sprouts, whole Whole Foods. And so they get their food before it gets discarded. So it's a great way to provide food for those who are in need. I also got an opportunity to connect with EV Mutts director, Board Director President Luz Gomez. It was a great conversation to have with her. June 5th CSDA board meeting. We provided direction and parameters to the staff on the SDRMA building purchase in downtown Sacramento. We approved the upcoming August conference. I guess it would be the conference agenda and such and also the awards that will be happening at that conference. June 10, Aqua Clean fleets working group meeting. We discussed a comment letter to CARB that was already sent out, I believe it was today or yesterday from Acqua. It's a good letter. I also saw the letter that general manager Rachel Murphy sent me from CMUA, which kind of mirrors each other on that 15 day comment period and the issue about the rents and leases that was added to CARB's ACF. And so there's a lot of. I mean, there's a lot of. It's complicated and there's a lot in there. And so hopefully CARB will look at these comments that are being made by public agencies around the state and take a second, you know, take a, take a, just a second look at what they're proposing. There's a lot of good information coming from these public agencies about how it would negative impact the ability for us to, you know, contract and lease and provide service to our customers through our contracts. So without, without any changes. This is really detrimental language to us. June, June 10 east also East Bay Leadership Council had a capital series meeting with Buffy Wicks. That was a good opportunity for me to really get to know Buffy Wicks at a more personal level. It was very informative to be present. She's very focused on housing. So that's an area that we, that we are concerned with because of ADUs, because of, you know, how, you know how the, how that streamline, how streamlining that permitting process may impact public agencies like us. So we want to be part of that conversation. And I think us being present is, you know, it's showing that we're interested in being part of the conversation. June 11 held a CSDA fiscal committee meeting where we reviewed the budget numbers, the disc collections for the year and the event's financials for the year as well. June 13 I also attended the Central Sanitary District 80th anniversary. It was a great celebration. You know, it kind of reminded me of our celebration for our 90th. But it's a good opportunity for the community to get together and see how they actually get services like wastewater. You know, they get water from us and then we give water to them in another way. So it's great to see families there. It's great to see the kids enjoying themselves on the potty races and the bathtub races that they had there. It was a good opportunity to be there. And so I saw Oliver Simons there and some other staff there. Kyle was there. So thank you for being there, supporting our partner agencies. And June 16, East Bay leadership Council held a Water and Environment Task Force Committee meeting. We listened to Jerry Brown who is the executive director for the Sites Reservoir and talked about their water rights petition to the state. And so that's where they are right now in this four month window of getting to know where they're going to be on that issue and how much water they're going to be able to get. So interesting conversation with them, interesting discussion about where they are and they're looking for support from various agencies. East Bay Leadership Council can provide support during a comment period that they're going to have on the water rights issue. So that's what they presented to the council for. So other than that, I have no other report. It is now 7:20. This meeting is adjourned. The next regular board meeting of the Board of Directors will be held on Wednesday, July 1, 2026 at 6:30pm in the boardroom located at 1331 Concord Avenue in Concord. Right.
[49:13] Speaker 8: Busy man.
[49:15] Speaker 5: A little bit.
[49:17] Speaker 8: People ask me how I get so much done, and I say I don't go to meetings. But now this is breaking my breaking and.