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[Water_news] 5. DWR'S CALIFORNIA WATER NEWS: AGENCIES, PROGRAMS, PEOPLE - 8/3/07

Department of Water Resources

California Water News

A daily compilation of significant news articles and comment

 

August 3, 2007

 

5. Agencies, Programs, People

 

MATILIJA DAM:

Dam destruction plan clears hurdle in House - Ventura County Star

 

ENERGY ISSUES:

State opposes Calpine reorganization plan; COULD INCREASE ENERGY COSTS BY $200 MILLION - San Jose Mercury News

 

SAN JOAQUIN VALLEY DRAINAGE ISSUES:

Editorial: A drainage fix soon?; Proposal would shift responsibility for solution to Westside farmers - Fresno Bee

 

SANTA CLARA VALLEY WATER DISTRICT:

Kwok named to water board; LEAVING CUPERTINO CITY COUNCIL POST - San Jose Mercury News

 

IMPERIAL IRRIGATION DISTRICT:

Through the eyes of the Valley: Sanchez discusses Hosken’s firing - Imperial Valley Press

 

RETIREMENT:

Reclamation's Mid-Pacific Regional Director, Kirk Rodgers, to Retire August 3, 2007 - News Release, U.S. Bureau of Reclamation

 

 

MATILIJA DAM:

Dam destruction plan clears hurdle in House

Ventura County Star – 8/3/07

By Zeke Barlow, staff writer

 

The push to tear down Matilija Dam on the Ventura River moved one step closer to a reality late Wednesday when the House of Representatives passed a bill authorizing it and other projects.

 

Though President Bush has vowed to veto the Water Resources Development Act because it is too costly, senators from both sides of the aisle are pushing to garner enough support in both chambers to override a veto.

 

Both Reps. Lois Capps, D-Santa Barbara, and Elton Gallegly, R-Simi Valley, voted in favor of the bill.

 

That the dam is that much closer to being torn down had local environmentalists cheering Wednesday's action.

 

"It's about time," said Paul Jenkin, of the Matilija Coalition. The group has been fighting for years to tear down the dam, which is filling with silt. "Once we have congressional buy-in, then the project is real."

 

Tearing down the 59-year-old structure would be the largest dam removal project in U.S. history. The $110 million project would return the Ventura River to its natural state, helping to establish habitat for the federally endangered steelhead trout.

 

Jenkin said removing the dam could also lead to 30 percent more silt and sand being deposited in the ocean during storms, helping to shore up Ventura's eroding Surfers Point.

 

The 160-foot dam has about 6.6 million cubic yards of silt built up behind it. The three-year plan calls for about a third of the silt to be moved and the rest to naturally flow down the river.

 

"It's a really good boost to the Ventura River restoration project that we keep up this momentum," said David Pritchett, program director for the Southern California Steelhead Coalition.

 

The Senate plans to act on the bill and get it to the president's desk before Congress begins its August vacation.

 

Even if Congress overrides a veto, the bill still has to be funded, which could take more time. It's taken seven years for this bill to get this far.

 

Russ Baggerly, chairman of the Casitas Municipal Water District's board of directors, which has the dam in its coverage area, said it's time for the bill to pass and be funded.

 

"It will keep coming back until it is finally passed," he said. "The country is in dire straits for water and now is the time to pass this bill." #

http://www.venturacountystar.com/news/2007/aug/03/dam-destruction-plan-clears-hurdle-in-house/

 

 

ENERGY ISSUES:

State opposes Calpine reorganization plan; COULD INCREASE ENERGY COSTS BY $200 MILLION

San Jose Mercury News – 8/3/07

By Sarah Jane Tribble, staff writer

 

In a sign that there's growing opposition to San Jose power plant owner Calpine's bankruptcy reorganization, California's attorney general has asked a bankruptcy judge to reject the company's plan.

 

Attorney General Jerry Brown called the bankruptcy reorganization plan "fatally flawed" because it would illegally allow Calpine to eliminate a large power supply contract signed with the state.

 

Only the U.S. Federal Energy Regulatory Commission has the power to end that contract, Brown said in an objection filed with the U.S. Bankruptcy Court in Manhattan on Wednesday. The California Department of Water Resources, which signed the contract, and other state agencies joined Brown in his objection.

 

Calpine declined to comment Thursday. Last month, the federal trustee overseeing Calpine's bankruptcy also urged the court to reject it, saying the company failed to provide creditors with enough details about how the company was compensating executives and paying for bankruptcy proceedings.

 

If creditors and the bankruptcy judge fail to approve the plan on schedule, the company would miss its target to emerge from bankruptcy by the end of the year.

 

A source familiar with the process said several alternative reorganization plans prepared by creditors or equity holders are being proposed to Calpine. The plans contemplate paying off all unsecured creditors.

 

Calpine, which operates 72 power plants nationwide, has shed more than 1,000 employees and sold some plants since filing for bankruptcy in December 2005. Based on the terms of the reorganization plan, Calpine plans to leave bankruptcy with $11 billion in debt - far less than it began with.

 

The California state contract is the only one remaining out of eight that Calpine sought to cancel as part of its bankruptcy reorganization. Calpine has settled its disputes with the counter-parties to the other contracts: Edison International unit Southern California Edison, Acadia Power Partners, PG&E unit Pacific Gas & Electric, Reliant Energy Electrical Solutions, and the Northern California Power Agency and Strategic Energy, which is the retail supply subsidiary of Great Plains Energy.

 

Under California's power purchase agreement, signed in 2001 during the California energy crisis, Calpine agreed to supply state utilities with 1,000 megawatts of electricity around the clock through 2009 at a price of $59.60 per megawatt hour. When Calpine filed for bankruptcy in December 2005, it said that price was below current market prices and asked the bankruptcy judge for permission to terminate it.

 

The contract, which ends in 2009, allows the state to pay a moderate rate for energy because the state paid a premium for power during the first years of the contract. If Calpine is able to cancel the contract, the state would then have to negotiate another contract that would probably cost $150 million to $200 million more to replace the energy, said Erik Saltmarsh, executive director of the California Electricity Oversight Board, which joined the objection.

 

"The cost of that power is a straight pass-through to consumers, so if it goes up by one more dollar, one more dollar will be passed through to consumers," Saltmarsh said. #

http://www.mercurynews.com/businessheadlines/ci_6533484

 

 

SAN JOAQUIN VALLEY DRAINAGE ISSUES:

Editorial: A drainage fix soon?; Proposal would shift responsibility for solution to Westside farmers

Fresno Bee – 8/3/07

 

A proposed deal between the federal government and west-side farming interests has been tweaked in a fashion that may make it more palatable to Congress and others. Depending on the final shape of the agreement, it could offer a way out of a decades-old dilemma over drainage problems in the region.

 

An earlier version of the deal called for the feds to hand over ownership of the San Luis Reservoir and associated canals and pumping plants to the Westlands Water District and other local irrigation districts. That's been abandoned in favor of lengthy contracts and debt forgiveness for farmers in the districts, who still owe nearly a half-billion dollars for construction of the system.

 

The real problem began in the 1960s, when the feds built the reservoir, but failed to provide drainage to carry irrigation water to the Sacramento-San Joaquin Delta. In the absence of a drainage solution, salts and other pollutants in the water collected in the soil on the west side, causing much environmental damage.

 

A judge ruled the federal government must fulfill its obligation to clean up the drainage issue, and the current talks are the latest effort to forge a solution.

 

The government estimates it will cost some $2.6 billion to fix the drainage problem. Under the proposed deal, responsibility for a drainage fix would shift to the farmers, who believe they can come up with an answer for around $700 million.

 

The farmers propose to use a mix of "biotreatment," evaporation, salt-tolerant crops and hauling away accumulated salts to remedy the problem.

 

Sen. Dianne Feinstein, who has taken a lead role in the talks about a solution, is guardedly optimistic, and that's encouraging. A final judgment on the proposal awaits a fully fleshed-out version that all sides can support. We hope they reach that point. This has gone on long enough.  #

http://www.fresnobee.com/opinion/story/102914.html

 

 

SANTA CLARA VALLEY WATER DISTRICT:

Kwok named to water board; LEAVING CUPERTINO CITY COUNCIL POST

San Jose Mercury News – 8/3/07

By Paul Rogers, staff writer

 

Civil engineer and Cupertino Vice Mayor Patrick Kwok has been appointed to the Santa Clara Valley Water District board of directors.

 

Kwok, 66, who worked for 23 years as chief engineer at San Jose's wastewater treatment plant, will resign from the Cupertino City Council on Tuesday when he is sworn in on the water board.

 

The only engineer on the seven-member water board, he replaces Greg Zlotnick, who stepped down July 10 to take a staff job with the district.

 

On Monday, water district CEO Stan Williams publicly apologized for hiring Zlotnick without advertising the newly created, $184,000-a-year adviser job, or interviewing other candidates.

 

The board responded by approving a series of reforms, including requiring that it approve any person Williams hires to top management positions, establishing a one-year "revolving door" ban on board members being hired as staff, and removing the chief financial officer, agency counsel and board clerk from Williams' control so that they now report directly to the board.

 

The board voted late Wednesday to appoint Kwok after interviewing 15 candidates at public meetings.

 

The water board position pays $236 per meeting.

 

On Thursday, Kwok said his top priorities will include closely monitoring the water district's spending.

 

"I will be really looking for cost-effectiveness," he said. "Being the new kid on the block will give me the opportunity to question past practices. I'm very conservative in terms of budget."

 

He mentioned a report by the Santa Clara County grand jury last year that showed the water district pays higher wages than other government agencies in the county, and that the district's salary costs doubled from $49 million in 2000 to $99 million in 2006.

 

"I was amazed to see the increased numbers of staff members over the past five or six years," Kwok said.

 

He said he also will advocate for recycled water and better water conservation.

 

Kwok, who was born in Hong Kong and came to the United States in 1967 with his wife and infant child, became a U.S. citizen in 1972 and went on to earn two master's degrees - one in civil engineering from San Jose State University and one in public administration from California State University-Hayward.

 

"I came with $200 in my pocket," he said. "All six of my children graduated from college here. This country is the only one that can give you an opportunity like that - provided you are willing to work hard and set goals." #

http://www.mercurynews.com/localnewsheadlines/ci_6533452

 

 

IMPERIAL IRRIGATION DISTRICT:

Through the eyes of the Valley: Sanchez discusses Hosken’s firing

Imperial Valley Press – 8/3/07

By Darren Simon, staff writer

 

The Imperial Irrigation District has found itself leading headlines in recent weeks, both for a probe of a 2005 energy trading program and the board’s recent move to fire General Manager Charles Hosken.

This week the Imperial Valley Press published a story on Hosken where the only director who voted against firing him, Director John Pierre Menvielle, challenged his fellow board members for their votes to oust Hosken.

One specific comment by Menvielle focused on the fact Director Anthony Sanchez joined in the vote to fire Hosken. Of Sanchez’s vote, Menvielle said “the fourth vote got scared and ran with the pack.”

Soon after the Hosken story was published, Sanchez requested he be given the opportunity to tell his side as part of this week’s question-and-answer story.

Today, Sanchez talks about his vote to fire Hosken and about the future of the district.

 

 

Question: One board member said you joined a pack vote to oust Hosken. What is your response to that and why did you vote to fire Hosken?

Answer:
First, I’d guess I’d say I’m very disappointed in that comment. John Pierre has told me on more than one occasion that he believes that I am my own man. The proof is in the pudding if you look at my voting record.

I’m probably one of the most diverse directors when it comes to casting votes as far as never really voting too many times with the same director. I’ve lost votes with John Pierre 2-3, I’ve won with John Pierre 3-2, and I’ve voted against John Pierre 4-1.

Having said that, we’ve made our peace. There are a lot of issues that we do agree on and we want to move forward with.

Q: And of your vote to fire Charlie Hosken — why?

A:
My vote to fire Charlie Hosken — it was a very tough decision for me to make personally as well as for the business. We deliberated for over eight hours on the merits of his reasons to be terminated.

It wasn’t specifically tied to the hedging. There were a variety of factors that played into the decision making.

At the end of the deliberation the board felt uncomfortable with the pace of change that was happening in the district, so we decided to change course and head into a new direction.

Q: What direction?

A:
Well, what the people want. What do the people want. They want faster actions toward the fighting of nepotism, job creation, an efficient run IID and some opportunities to work at the IID.

Q: But there are some key issues on the table that the board has to deal with that it needs management for, needs somebody in place to guide the board — things like the QSA, like Green Path, like water conservation, like drought. What direction does the board want to take that it didn’t feel Charlie Hosken could help with?

A:
What the board has been doing is to take collective thinking, collective bargaining so to speak as well between the constituents. We have capable people on the IID staff besides Charlie Hosken to come up with solutions. I’m not denying the fact we need a general manager; I strongly believe we need a strong general manager.

We are in the process of finding one and hopefully we’ll be putting one in here pretty soon.

Q: Last time it took the board six months to find a general manager. When you say pretty soon, what does that mean?

A:
Sooner rather than later. There is discussion maybe of an interim general manager who is a well qualified general manager in other districts who would come in and take the helm for a few months. I think we are looking at that option, but if we could have one in a month or two that would be great, but we want to make sure we make the right choice.

Q: When you talk about an interim general manager, right now you have Elston Grubaugh as an acting general manager. What’s the difference?

A:
The difference between an acting and interim, the interim would be the better experienced candidate for leading the district. Elston is very capable candidate for leading the district until we find an interim general manager or a general manager.

Q: Board members who voted to oust Hosken haven’t given any specific reasons for firing Hosken …. Do you think the public deserves to know more than what it has been told so far?

A:
I believe the public should know as much as they would need to know of why change was made and not changing fast enough is a pretty good reason.

Q: What are your thoughts on the future of the energy cost adjustment and power base rates?

A:
Right now there is discussion of removing the ECA rate from the equation and moving just to a base rate.

But I think the public needs to know hedging wasn’t the problem. It was the lack of oversight and controls by management that were the problem.

Q: Aside from hedging, going back to the ECA and base rate, you said there was discussion of getting rid of the ECA and going just on the base rate. Is that something you support?

A:
I’m still deliberating that in my own mind. Many districts throughout the country have found success with the hedging strategy. They have found their rates are stable when properly done. A base rate is very conservative. We are a public company and we need to be conservative, but we’re facing fierce competition for natural resources where, to be conservative, a hedging program may be a useful tool in stabilizing our rates.

Q: It sounds to me like you are saying there is no ECA without a hedging program, but you can hedge even if you don’t have an ECA. I guess my question again is do you support completely doing away with the ECA and just going on base rates?

A:
I’m still deliberating in my own mind whether we should remove the ECA because it is a competitive 21st century tool in helping us stabilize natural gas.

Moving into a base rate is very conservative and I think that it is important that we dissolve all theories and ideas on both strategies and make sure we pick the best one for the IID.

Q: As we go into the future can ratepayers expect higher rates or lower rates or no changes to the rates?

A:
In the long-term future nothing is guaranteed. The U.S. consumes 35 percent of the world’s natural resources, including gas, China is close to consuming 35 percent and we’re soon to be at 50 percent in five years, so nothing is guaranteed.

The only thing that the IID board should strive to guarantee is an efficient IID when it comes to employees, major work authorizations, getting them done in a timely manner, hiring and getting the right people to save the district money.

Q: Several meetings ago, you raised the issue of the 2001 efficiency study. Do you think the board needs to go back to that efficiency study?

A:
I brought up the efficiency study because being in the housing industry prior to being elected on the IID board I had grave concerns on the housing industry heading into the summer.

Upon hearing stories about the efficiency study not being completed, I found it to be an opportunity for the IID to revisit it to save the district some money, to provide ratepayer relief, especially during the summer, when last summer was one of the hottest summers we have had in Imperial County.

Q: Is there any interest in having Arn Lahde (a former contract manager who helped develop a 2001 efficiency study) come in and lead efficiency efforts.

A:
I guess we can move on to the next question. … There is no motion or anything like that.

Q: There certainly are a lot of rumors around the community that some board members want to have Arn Lahde come back not as an efficiency manager but on some kind of contract basis.

A:
I know he led the implementation of the efficiency study. If there is anything that can be salvaged from the efficiency study for ratepayer relief, I can say he would be a candidate for the efficiency study and the efficiency study only.

Q: How in your mind should the district push forward with water conservation efforts?

A:
Everybody in his own right mind should be good stewards of the water, our water.

Q: Specifically, the district has to conserve over 300,000 acre-feet of water to transfer to San Diego in a very short period of time. The district is facing drought, and the district is facing the QSA limitation, and the cap on water use, and the district is faced with having to divide water between farmers, cities and new industry. Is the district ready to do that and how should water conservation occur to make that water available?

A:
Me personally and what I believe the district is doing so far is moving forward to find these waters for whoever wishes to set up shop here in Imperial County, but like every organization, we have our limitations.

Q: You have not been the most vocal director in your first eight months. Do you believe you were prepared to be a director? What do you think of your first eight months of service?

A:
I still believe I am the best man, or the best candidate, for Division 5. My values on water were prepared by sitting on the Heber water board. I think it is probably as important or more important than experience itself.

My first eight months have been challenging and rewarding. Being the youngest to ever be elected has been a challenge in its own way because I feel I have had to prove myself more than any other director.

But if we go back to my voting record, you will see I am not easily persuaded. I vote ideas and thoughts. #

http://www.ivpressonline.com/articles/2007/08/03/news/news04.txt

 

 

RETIREMENT:

Reclamation's Mid-Pacific Regional Director, Kirk Rodgers, to Retire August 3, 2007

News Release, U.S. Bureau of Reclamation – 8/1/07

Contact: Jeffrey McCracken, 916-978-5100

 

The Bureau of Reclamation announces that Mr. Kirk C. Rodgers will retire on Friday, August 3, 2007, after 35 years of Federal service.  Rodgers has served as the Mid-Pacific Region's Regional Director since February 2002.  He joined Reclamation's Pacific Northwest Region in July 1973 and came to the Mid-Pacific Region in 1981.  Rodgers was selected as Deputy Regional Director in 1996.  He also served as the Acting Regional Director from February-October 1999 and from March 2001-February 2002.

 

Although Rodgers will step down as Regional Director, he will continue working for the Region, focusing on several highly critical Regional issues to include drainage in the San Joaquin Valley, restoration of the San Joaquin River, and many complex issues in the Sacramento/San Francisco Bay-Delta.  Rodgers' continued involvement in these challenging areas will help ensure a smooth transition for the new Regional Director.

 

"Words cannot properly express the satisfaction I have felt in serving as Regional Director for these past few years, and as Deputy Regional Director for a few years prior to that," Rodgers stated. "Dealing with water and power issues in Oregon, Nevada and, particularly, California have stretched and challenged me beyond anything I could have imagined, and I have met and worked with some of the most talented and dedicated people in the water business."

 

"Reclamation has been good to me," Rodgers continued.  "I'm very loyal to the mission and purpose.  It is for these and other important reasons that I look forward to a continued relationship in the water and power community for some years to come."

Reclamation Commissioner Robert W. Johnson has asked Mr. John Davis, the Mid-Pacific Region's Deputy Regional Director, to serve as the Acting Regional Director for the next 3 months. 

 

The Mid-Pacific Region's Regional Director oversees Reclamation water projects in an area encompassing the northern two-thirds of California, most of northern Nevada, and a portion of southern Oregon.  The Regional Director is also responsible for one of Reclamation's best-known projects, California's Central Valley Project (CVP), the largest irrigation project in the Nation.  The CVP provides urban water for more than 3 million people, irrigation water to more than 3 million acres, industrial water for key economic areas of California such as the Silicon Valley, and environmental water for wildlife needs and fishery restoration.  The CVP also generates some 5.6 billion kilowatt hours of electricity annually.

 

Reclamation is the largest wholesale water supplier and the second largest producer of hydroelectric power in the United States, with operations and facilities in the 17 Western States. Its facilities also provide substantial flood control, recreation, and fish and wildlife benefits. Visit our website at www.usbr.gov.

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