minutes

Regular Meeting

Governing Board of Sweetwater Authority

January 25, 2006

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, January 25, 2006, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Pocklington called the meeting to order at 3:31 p.m.

· ROLL CALL

Directors Present: Alkire, Beauchamp, Doud, Morrison, Pocklington, Salas and Welsh.

Directors Absent: None.

Others Present: General Manager Bostad, Operations Manager Rogers, Legal Counsel Cowett, and Board Secretary Schoonderwoerd. Staff members Rick Alexander, Debra Farrow, Bill Olson, George Silva, Jim Smyth, Don Thomson, and Tom Woodrum; and
Mr. David Hanna, member of the public.

· PLEDGE OF ALLEGIANCE TO THE FLAG

Director Morrison conducted the pledge of allegiance to the flag.

· OPPORTUNITY FOR PUBLIC COMMENT (Government Code Section (54954.3)

Chair Pocklington invited Mr. David Hanna to address the Board. Mr. Hanna stated his name and address. Mr. Hanna expressed his concern that Sweetwater Authority’s commodity rates were not high enough. He believed that the infrastructure is being built not for him as a conservationist, but for those who use more water. He said that Sweetwater Authority’s Customer Service staff explained that the County Water Authority charges were broken out of the commodity charge on the bill, but he believes that does not do the conservationists any good. He felt that Sweetwater would not be able to test the elasticity of demand for water, because the rates are too low. His sewer charge was cut almost in half three years ago, and he thinks that Sweetwater Authority has the flow data to do the same based on usage. In summary, he said that Sweetwater’s rates are totally incongruous with the goal of water conservation. He expressed his thanks for the opportunity to address the Board. Chair Pocklington said that the Board will look at the commodity charge next year when it considers the rate increase. Director Salas told Mr. Hanna that she liked his philosophy and that people should be given an incentive to conserve.

· CHAIR’S PRESENTATION

Chair Pocklington asked Legal Counsel Cowett to address the 2006 Brown Act update received by all Directors. Mr. Cowett explained that there were a few modifications this year, which are highlighted in the booklet. Reporting on the Dynegy case, he said that in the settlement with Duke, the agencies as a group received $700,000. The court also awarded attorneys’ fees up to November 14, 2005, and the check was forwarded to the Authority last week. The Reliant settlement will likely be approved at a court date in April, with approximately $1 million spread among the nine agencies, and it will include attorneys’ fees from November 14th until that date.

ACTION CALENDAR ITEMS

1. ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA

General Manager Bostad requested that the Conference with Labor Negotiator under Closed Session, which was listed as Item 12 on the agenda, be reordered to Item 2.

2. CLOSED SESSION

At 3:45 p.m., in compliance with Government Code Section 54957.6, the Board recessed to convene in Closed Session to conference with Labor Negotiator William Floyd regarding labor negotiations.

Everyone left the Board Room except the Board members, Management Team, Administrative Services Director, Board Secretary and Legal Counsel. There were no minutes taken, and the session was not tape-recorded.

At 4:24 p.m., Chair Pocklington declared the meeting to be in open session, and there was no reportable action.

3. APPROVAL OF MINUTES

Director Salas made a motion, seconded by Director Alkire, that the Governing Board approve the minutes of the January 11, 2006 meeting. The motion carried.

4. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Morrison, that the Governing Board approve Warrants 103560 through 103766, including all voided checks. The motion carried.

5. OPERATIONS COMMITTEE (Meeting of January 18, 2006)

A. Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve the connection of the remote service to the Authority’s main in Central Avenue, with the understanding that the property owner will be responsible for all fees and deposits, including the cost to abandon the existing service originally installed in San Miguel Road. The motion carried.

B. Director Doud made a motion, seconded by Director Beauchamp, that the Governing Board award a contract in the amount of $57,375 to DenAir, Inc. dba Dynamic Air, 12316 Oak Knoll Road, Suite B, Poway, CA 92064, and approve the allocation of $44,597 from the Repair and Replacement Reserve Fund based on the projected deficit. The motion carried.

C. Director of Engineering Smyth gave a brief explanation of the projects in the 2005-06 Metallic Main and Master Plan Replacement Programs. Director Doud made a motion, seconded by Director Beauchamp, that the Governing Board award a contract in the amount of $3,033,284, for the 2005-2006 Metallic Main and Master Plan Replacement Programs to El Cajon Grading & Engineering, P.O. Box 967, Lakeside, CA 92040, based on the Alternative B bid and commit to funding the deficit through the fiscal year 2006-07 budget process. The motion carried.

6. NEW BUSINESS
There was none.

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

Director Pocklington introduced Ron Morrison as the new City of National City representative to CWA. Mr. Pocklington then summarized what would be considered at the January 26th CWA Board meeting. The action item on the Administrative and Finance Committee is an ordinance amending the Administrative Code provisions governing Board compensation and reimbursement of expenses according to AB 1234. They will also review and provide direction regarding the list of organizations of which CWA is a member and consider an increase in per diem for MWD delegates. The Imported Water Committee will have an update on the selection of a new CEO for MWD, which they hope to have completed by February 7th; under the Quantification Settlement Agreement, we will receive 40,000 acre-feet of water from IID this year as opposed to the 30,000 acre-feet last year; and the ten-year Bay Delta project will be discussed. The Legislation, Conservation, and Outreach Committee will have a presentation on landscape water conservation training; a report on the Water Resources Investment Fund; a report from Carpi and Clay on legislative issues; and recommendations of the AB 2717 Landscape Conservation Task Force to assure the sale and installation of waterless urinals in California, to increase the planning horizon of the Urban Water Management Planning Act to 25 years, and to receive state authorization to remove operational constraints for the Conservation Garden.

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

A. California Special Districts Association, San Diego Chapter, Quarterly Meeting – Thursday, February 16, 2006, at the Double Tree Club Hotel, Mission Valley – “What is on Tap for the State of California and Special Districts in 2006 from the Legislature and Governor” by Ben G. Clay, Principal, Government Relations firm of Carpi & Clay. All Directors will attend this pre-approved event. No action was required by the Governing Board.

B. Water Education Foundation Executive Briefing – Radisson Hotel, Sacramento, March 23-24, 2006. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

9. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Welsh thanked Director Pocklington for organizing and hosting the Agricultural Water Users Tour. She thought these tours were very helpful and was particularly impressed with going into a cotton gin factory. She was also impressed with seeing the lining of the canals.

Director Doud agreed that the Agricultural Water Users Tour was a very good tour and noted that this was the first Met tour of this type. After touring the Yuma Desalting Plant with the U.S. Bureau of Reclamation he was impressed with the large RO membranes they were building and testing. They achieve 95 percent recovery, and he thinks they will achieve their goal of 100 percent recovery.

Director Beauchamp was also impressed with the Yuma Desalting Plant. He had a misconception of what was going on there, and had seen the diversion off the river, but getting on the dam gave him a better understanding. He remarked that Director Pocklington’s leadership showed on this tour, that he made sure everything went well, and he really appreciated that. Director Beauchamp also reported that the presentation at the Council of Water Utilities on the 17th made him think about his efforts to conserve hot water usage at home.

Director Morrison reported that he had been at the Yuma Desalting Plant about 12 years ago when it was actually being test-run. He found it interesting to visit the agricultural fields to see the complexity of the irrigation systems, which gave a whole new dimension to the water transfer. He also thanked Director Pocklington and commended him on his leadership.

Director Alkire said he had some of the same observations and comments on the tour that were expressed by the other Directors in attendance.

Director Pocklington said that in planning the tour, he decided they needed to go down to Yuma to see the Desalting Plant. He found that this was one of the best briefings they have had on desal and what is happening down there. He said he appreciated everyone coming on the tour.

10. BUDGET REPORT – INTERIM DIRECTOR OF FINANCE FARROW
Report as of December 31, 2005

Ms. Farrow reported that there was not much change in December. At six months into the fiscal year, Water Sales are up approximately two percent over budget, or $376,000. Operating Expenses are over budget by $82,000, so the net effect is approximately $293,000. Other Income is $105,000 over budget, and Interest Income is about $250,00 in the black. Overall, we are about where we want to be. For year-to-date Capital Projects, each department is spending just about as predicted. In summary, we anticipated about 37 percent to be spent at this time, and we are actually at 29 percent spent.

11. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Operations Manager Rogers reported on a main break that occurred about 2:00 a.m. today. We were unaware of the leak, but there was a lot of water coming out of the clear well, and we had low pressure complaints from some areas of Chula Vista and National City. Crews searched but could not locate the source of the leak. By chance, a crew was setting up barricades for a job at 6:30 a.m. when they discovered a broken 12-inch steel pipeline, installed in 1967, crossing Paradise Creek by Wilson Avenue and Mile-of-Cars Way and spilling water into the creek. The break was isolated, and no one is out of service in the area. He noted that we would normally expect to get a lot of dirty water complaints with a main break of this size, but we had very few. This is a reflection on the flushing program we began two years ago. General Manager Bostad added that there was another main break in Bonita, off Otay Lakes Road, so crews were very busy today.

On the Loveland Reservoir water release, which began on January 4th, Mr. Rogers reported that the system will be shut off on Sunday, the 29th at 10:00 a.m., and approximately 12,000 acre-feet will have been transferred into Sweetwater Reservoir. He thinks we are looking at about 17 percent water loss, which is much better than expected considering the dry weather conditions.

B. Report of General Manager Bostad: General Manager Bostad reported that Information Systems Director Silva received a letter from the City of National City Fire Chief extending appreciation for outstanding service provided by Debby Stein, GIS Specialist. Mr. Silva explained that the fire department requested the Authority’s help in updating its map books showing city streets and fire hydrants in National City. Their map books were about 20 years old, outdated, almost unreadable, and had originally been copied from the Authority’s block maps. General Manager Bostad authorized the use of the Authority’s GIS system to produce the updated map and map books, and in exchange the fire department provided private fire hydrant inventory data the Authority did not have. At the dedication of the new fire station a few months ago, the large map we printed was placed on display at the station and is being used to teach new firefighters about the location of all fire hydrants. Mr. Silva estimated that there are approximately 100 private fire hydrants in our system. There was a brief discussion regarding the use and monitoring of private fire hydrants. Mr. Bostad remarked that he was very proud of Ms. Stein and wanted to highlight this recognition to the Board and the appreciation staff receives in the community.

Mr. Bostad also informed the Board that the Sweetwater Dam historical presentation by the American Society of Civil Engineers will be held on Friday, April 7, 2006, at 11:00 a.m. at the dam. We are getting confirmation from a number of leaders in the community to attend this event.

Mr. Bostad also drew the Board’s attention to the monthly report of activities for December in the Board package. On the Water Production section of the monthly report, Director Alkire questioned if the second aqueduct figure reflected the algae bloom. Mr. Bostad indicated that the water was part of the Seasonal Storage Operating Agreement.

The Board then viewed a series of ten local television news reports on the Loveland water transfer. The Board agreed that staff did a wonderful job on the interviews.

12. DIRECTORS’ COMMENTS

Director Salas informed the Board that she would not be able to attend the Ad Hoc Committee meeting this Friday, January 27th, as she would be in Sacramento.

Director Doud said he received a letter today as President of the CSDA San Diego Chapter from the Fallbrook Healthcare District advising us of their new directors. Gordon Tinker is one of their new directors and is the President. He then read an anonymous quote, “Social tact is making your company feel at home, even though you wish they were.”

Director Beauchamp suggested that a letter of thanks from the Authority be sent to Jim Cherry at the Yuma Desalting Plant and one to Director Keys to thank him for the wonderful tour given by his staff. Staff will follow up on this.

13. ADJOURNMENT

With no further business before the Board, Chair Pocklington adjourned the meeting at 5:19 p.m., to the hour of 6:00 p.m. on February 8, 2006.