minutes

Regular Meeting

Governing Board of Sweetwater Authority

January 22, 2003

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, January 22, 2003, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Doud called the meeting to order at 3:30 p.m.

· ROLL CALL

Directors Present: Beauchamp, Doud, Inzunza, Pocklington, Welsh, Wolniewicz and Wright.

Directors Absent: None.

Others Present: General Manager Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Avery, and Board Secretary Farpón-Friedman. Staff members, Debra Farrow, Mary Ann Mann, Bill Olson, Paula Roberts, George Silva, Jim Smyth, and Tom Woodrum. Also present was National City Representative Robert Valderrama.

· PLEDGE OF ALLEGIANCE TO THE FLAG
Director Beauchamp conducted the pledge of allegiance to the flag.

· OPPORTUNITY FOR PUBLIC COMMENT (Government Code Section (54954.3)
There were no members of the public present for comment.

· CHAIR ’S PRESENTATION
There was no presentation.

· ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA
There were none.

1. CLOSED SESSION

At 3:31 p.m., in compliance with Government Code Section 54957.6 (a) the Board recessed to convene in Closed Session to conference with Labor Negotiator Floyd regarding personnel matters.

There were no minutes taken, and the session was not tape recorded.

At 4:22 p.m., Chair Doud declared the meeting to be in open session, and there was no reportable action.

2. APPROVAL OF MINUTES

Director Wright made a motion, seconded by Director Beauchamp, that the Board approve the minutes of January 8, 2003. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Wright made a motion, seconded by Director Beauchamp, that the Board approve Warrants 86573 through 86797 including all voided checks. The motion carried.

CONSENT CALENDAR ITEMS

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of January 16, 2003)

CONSENT ITEMS

Director Wolniewicz made a motion, seconded by Director Pocklington that the Governing Board approve consent items A and C. The motion carried with Director Pocklington pulling Item C for discussion.

A. Review of leak adjustment report for the period October 1, 2002 through December 31, 2002. This was an information item and no action was required by the Governing Board.

ACTION ITEM

B. Upon a motion made by Director Wolniewicz, seconded by Director Pocklington, the following resolution:

RESOLUTION 03-01

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
ADOPTING THE ANNUAL STATEMENT OF INVESTMENT POLICY FOR 2003

was passed and adopted by the following vote to wit:

Ayes: Directors Beauchamp, Doud, Inzunza, Pocklington , Welsh, Wolniewicz and Wright
Noes: None
Absent: None
Abstain: None

ITEM PULLED FOR DISCUSSION

C. Director Pocklington requested further information on this item. General Manager Bostad said that we would credit customer bills that will be mailed starting February 7th and it would take 2 months to complete the cycle. Along with Director Wright, Director Pocklington also asked if staff was sending out a press release. Manager Bostad provided draft copies of a future billing statement with a message addressing the credit along with a suggested press release for Board comment. Manager Bostad asked that those comments be provided to the Communications Director or to him. Director Wolniewicz made a motion, seconded by Director Pocklington, that the Governing Board rescind the 1.9 percent Power Rate Stabilization Reserve charge; credit the approximately $419,000 collected by virtue of the 1.9 percent charge to the bills of existing customers; and direct the Communications Committee to provide further comments regarding the release of information. The motion carried.

ACTION CALENDAR ITEMS

5. SECURITY COMMITTEE (Meeting of January 20, 2003)

Director Pocklington reported that the Committee had met under closed session to discuss security issues with Emergency Management Coordinator Perez, pursuant to Governing Code Section 54957(a).

There was no reportable action.

6. REPORT OF THE SOUTH BAY IRRIGATION DISTRICT REPRESENTATIVE AND THE CITY OF NATIONAL CITY REPRESENTATIVE TO THE SAN DIEGO COUNTY WATER AUTHORITY

Director Pocklington provided information on some items of interest included in the agenda for the Board meeting of January 23rd. He also informed the Board that he had been appointed to the Engineering and Operations Committee and Water Policy Committee, and Mr. Valderrama was appointed to the Engineering and Operations Committee and the Public Affairs Committee.

He commented on indications that the costs for the MWD Diamond Valley Lake Recreation Plan will surpass the amount of $56 million initially approved by the Board. He also noted that the same company that is doing our Vulnerability Assessment, Metcalf and Eddy, will do the CWA’s. He thinks this might be beneficial to Sweetwater Authority as Metcalf will be able to incorporate into Sweetwater Authority’s study the knowledge that they acquired from doing the assessment of the CWA’s dams.

Mr. Valderrama also briefed the Board on issues that will be discussed at the Board meeting tomorrow under the Public Affairs, Administrative and Legal, and Planning and Environmental Committees.

7. APPROVAL OF DIRECTORS’ ATTENDANCE AT MEETINGS AND FUTURE AGENDA ITEMS

A. Chula Vista Chamber of Commerce Annual Installation Dinner – Friday, January 24, 2003, 6:00 p.m. Director Pocklington made a motion, seconded by Director Wolniewicz, that the Governing Board approve per diem for Director Inzunza to attend this event representing Sweetwater Authority. The motion carried.

B. National City Chamber of Commerce Annual Installation Dinner – Saturday, February 1, 2003. Director Pocklington made a motion, seconded by Director Wright, that the Governing Board approve per diem for directors who wish to attend this event. The motion carried.

C. State of the County Address, February 5, 2003, 6:00 p.m. at the Copley Symphony Hall. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve per diem for directors who wish to attend this event. The motion carried.

D. ABA 21st Water Law Conference – February 20-21, 2003 at Loews Coronado Bay Resort. Director Pocklington made a motion, seconded by Director Wright, that the Governing Board approve per diem for Directors who wish to attend this event. The motion carried.

8. REPORT OF TREASURER – WANDA AVERY

Ms. Avery reported that interest rates are still between 1 and 2 percent.

9. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Operations Manager Rogers said that from now on he would be reporting on the monthly activities. He noted that the 12-month rolling average of unaccounted-for water is 2.6 percent, and he wanted to communicate to the Board the importance of this. He said that the California Urban Water Conservation Council recommends that water agencies have, as a benchmark, less than10 percent unaccounted-for water. The difference between 2.6 percent and 10 percent of purchased water would amount to just under $1 million in cost for water unbilled. Operations Manager Rogers said that the reason we only have 2.6 percent of unaccounted-for water is our aggressive main replacement program. Since 1978, Sweetwater Authority has replaced 28 percent of the total mains. The Board approved the rate increases to support this program and in the long run it has benefited our customers through lower rates. Operations Manager Rogers also reported on the low-flush toilet vouchers. Since the inception of the program in 1992, we have issued 210 single-family residential flush toilet vouchers. The effect of these toilets in the Sweetwater service area is a reduction in our total water needs of about 4 percent, which represents about $600,000. Also, Operations Manager Rogers read a letter from a consumer complimenting Sweetwater Authority for the service rendered by one of our crews when repairing a leak at his property.

B. Report of General Manager Bostad: Mr. Bostad said that in addition to the staff that repaired the leak, a member of our Customer Service group was also complimented in the letter, and this is indicative of the positive work environment that we want to encourage and continue to develop. He commented that our customers view our company directly through our front-line staff.

10. REPORT OF CALFED/BAY-DELTA OVERSIGHT COMMITTEE REPRESENTATIVE - DIRECTOR WRIGHT

Director Wright said that the meetings seem to be tapering off, but they are just waiting to see what the fallout will be for the IID situation. He said that he would expect to see shortly the water transfers and discussion regarding water from the Bay Delta coming back.

11. DIRECTORS’ COMMENTS

There were no comments by Directors.

12. ADJOURNMENT

With no further business before the Board, Chair Doud adjourned the meeting at 5:15 p.m., to the hour of 6:00 p.m. on February 12, 2003.