The Commish

The Water Commission met today. Despite the huge list of members, only 9 were in attendance, as well as Directors Wilson and Sanchez. The District web site as late as last night listed the meeting date as 23 March 2008, with no posted agenda, but that’s all fixed now, so the agenda is here.

This meeting was part of the groundwater charges hearing process, so Darrin Taylor and Amy Fowler again gave their presentation about financials and water supplies. The chart I posted here continues to cause comment. The Chair of the Commission, The Hon. Lou Becker from Los Altos, pressed Darrin Taylor to explain why the staff recommends the current rate increase while still asserting that the projects whose funding falls in the shaded area are necessary. As he put it, “If you can continue to supply water without these projects, why are they necessary, and, if they’re necessary, why aren’t they funded?” I have yet to hear a satisfactory answer to that question. Amy Fowler answered that some projects were deferred maintenance, some were not well-defined, and some represented long-term water resources development. It seems to me that the first and third categories should be included in budgeting now, while the second doesn’t belong in the category of “staff-identified needs.”

The Commission also discussed recycled water, with the Hon. Craig Gartman from Gilroy commenting that the new charges for recycled water in South County provided no incentive to use it, since it costs the same as groundwater. Darrin Taylor replied that recycled water is delivered at pressure, where groundwater has to be pumped by the user. However, the Eagle Ridge Golf Course, which is the largest customer of District-supplied recycled water, has had to treat the water with sulphur to mitigate the saltiness. The Hon. Peter Drekmeier from Palo Alto made several comments about recycled water: supporting its use in groundwater recharge, supporting pricing that encourages its use, and supporting cooperation between the District and the city of San José in expanding use of the city’s recycled water.

The Commission voted to support the proposed groundwater charges, with six ayes and three noes, the noes being the cities of Morgan Hill, Gilroy and Sunnyvale, although Hon. Ron Swegles from Sunnyvale did so because he needed direction from his City Council before approving the rates.

Peter Drekmeier then made two additional motions, with the encouragement of the chair, the first to support a two-tier rate structure for agriculture that would give lower rates to agricultural lands under conservation easements, and the second to support pricing incentives for use of recycled water. Both passed unanimously.

Peter Ng, the SCVWD CFO, gave his OPEB presentation again. This time he mentioned the possibility of the District’s issuing a bond to fund the trust fund up-front, and that the District may add HMOs to its benefit plan. The commissioners, all of whom have their own unfunded liability and current salary issues, were, to put it mildly, surprised at the generosity of the retiree health benefits.