minutes

Regular Meeting

Governing Board of Sweetwater Authority

February 12, 2003

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, February 12, 2003, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Doud called the meeting to order at 6:00 p.m.

· ROLL CALL

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

Directors Absent: Beauchamp.

Others Present: General Manager Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Avery, and Board Secretary Farpón-Friedman. Staff members Hank Gaus, Mary Ann Mann, Bill Olson, Paula Roberts, George Silva, Hector Martinez, and Tom Woodrum.

· PLEDGE OF ALLEGIANCE TO THE FLAG
Chairman Doud 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

Chair Doud read a letter that was addressed to the Board of Directors from a Chula Vista resident who stated her position against allowing fishing in Sweetwater Reservoir.

· ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA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

1. APPROVAL OF MINUTES

Director Wright made a motion, seconded by Director Pocklington, that the Board approve the minutes of January 22, 2003. The motion carried.

2. APPROVAL OF DEMANDS AND WARRANTS

Director Wright made a motion, seconded by Director Pocklington, that the Board approve Warrants 86948 through 87149 including all voided checks. The motion carried.

CONSENT CALENDAR ITEMS

3. COMMUNICATIONS COMMITTEE (Meeting of January 28, 2003)

CONSENT ITEMS

Director Pocklington made a motion, seconded by Director Wright that the Governing Board approve consent Items A through G.

A. Consideration of providing logo items for Governing Board members. This was an information item and no action was required by the Governing Board.

B. Consideration of purchasing 25th anniversary lapel pins. This was an information item and no action was required by the Governing Board.

C. Appoint Directors Beauchamp, Pocklington, and Welsh to serve as the Sweetwater Authority’s Scholarship Selection Committee, with Director Wolniewicz as an Alternate, to meet as arranged by staff based on quantity of applications for consideration.

D. Authorize staff to establish a program of regularly scheduled tours for elected and community leaders, with rotating Board representation at each event.

E. Authorize staff to distribute the proposed messages and press release related to the termination of Sweetwater Authority’s power rate reserve charges.

F. Annual update regarding communications activities and discussion of program direction and emphases. This was an information item and no action was required by the Governing Board.

G. Press releases, other items prepared for public information, distribution, and update on major projects. This was an information item and no action was required by the Governing Board.

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

CONSENT ITEMS

Director Welsh made a motion, seconded by Director Pocklington, that the Board approve consent items A through C . The motion carried.

A. Water Services – Sweetwater Valley Little League. This was an information item and no action was required by the Governing Board.

B. Proceed with negotiations with Standard-Tel for a telephone and voice mail system configuration not to exceed $250,000, including five-year maintenance plan.

C. Discussion of changes in benefits for directors. This was an information item and no action was required by the Governing Board.

5. OPERATIONS COMMITTEE (Meeting of February 5, 2003)

CONSENT ITEMS

Director Wright made a motion, seconded by Director Welsh, that the Governing Board approve consent items A, B, and C, and that Item D be pulled for discussion. The motion carried.

A. Authorize staff to proceed with the appraisal of two properties located on the south side of Loveland Reservoir and begin negotiations with the property owners, and that funds in the amount of $10,000 be allocated from the Unallocated Reserve Fund to complete this project.

B. Approve the funding of $85,000 for the Palomar Street widening project to be allocated from the Repair and Replacement Fund. The City of Chula Vista will share 50 percent of the final cost.

C. Award a contract for the Safety Office Remodel project to Merz Construction, 145 Twin Oaks Circle, Unit B, Chula Vista, California, in the amount of $23,839.

ITEM PULLED FROM CONSENT CALENDAR FOR DISCUSSION:

Note: Director Beauchamp arrived at 6:12 p.m.

General Manager Bostad presented detailed information on this project, and a discussion followed by Board members.

D. Director Pocklington made a motion, seconded by Director Wright, that the Governing Board approve staff’s recommendations as follows: 1) Initiate seasonal operation of SDF Wells to avoid impacts. 2) Increase irrigation of the river habitat as needed to avoid impacts. 3) Drill additional pilot wells in coordination with USGS evaluations to develop new groundwater supply wells farther away from the river. 4) Review adaptive management strategy with wildlife agencies and explore alternative restoration, operational, and mitigation approaches. 5) Transfer $60,250 from Budget Project 02-14E into the existing Budget Project AO105.

18. NEW BUSINESS

A. Director Pocklington made a motion, seconded by Director Welsh, that the Board send ACWA/JPIA a Resolution of support for the nomination of Joan Finnegan from Municipal Water District of Orange County to the Executive Committee. The motion carried.

B. Director Pocklington made a motion, seconded by Director Welsh, that the Board send ACWA/JPIA a Resolution of support for the nomination of Melody A. Henriques from San Bernardino Valley Water Conservation District to the Executive Committee. The motion carried.

C. Director Pocklington made a motion, seconded by Director Wright, that the regular Board meeting of March 12, 2003 be rescheduled to March 11, 2003 at 9:00 a.m., due to conflicts with the WESTCAS Conference in Scottsdale and the Water Education Foundation Briefing in Sacramento. The motion carried.

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

A. General Meeting of the WateReuse Association – San Diego Regional Chapter – Wednesday, February 19, 2003 – 9:30 a.m. to 11:50 a.m. at the City of Carlsbad. Directors Wright and Doud will attend this meeting. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve per diem for directors attending this event. The motion carried.

B. Council of Water Utilities Breakfast – February 18, 2003 –StoneRidge Country Club – 7:15 – 8:45 a.m. All Directors will be attending this pre-approved event. No action was required by the Governing Board.

C. American Water Works Association – Water Security Congress – March 23-26, 2003 – Los Angeles. None of the directors will attend this event. No action was required by the Governing Board.

D. Water Education Foundation – Lower Colorado River Tour – March 26-28, 2003. No action was required by the Governing Board.

E. Association of California Water Agencies – (ACWA) – Closing the Loop on Water and Growth, a Special Briefing for Water Officials – March 27, 2003, 8:00 a.m. to 3:00 p.m. - Napa Valley Marriott Hotel. Directors Welsh and Wright will attend this pre-approved event. No action was required by the Governing Board.

F. Director Pocklington made a motion, seconded by Director Welsh, that the Governing Board approve per diem for Director Inzunza for attending the tour of Sweetwater Authority’s facilities on January 29, 2003. The motion carried.

G. Director Welsh made a motion, seconded by Director Beauchamp, that the Governing Board approve per diem for Director Wright for attending the Interagency Water Task Force meeting of January 24, 2003. The motion carried.

H. Director Welsh made a motion, seconded by Director Beauchamp, that the Governing Board approve per diem for Director Wright attending the Metropolitan Water District Board meeting on January 29, 2003. The motion carried.

Note: Director Inzunza left the meeting at 6:35 p.m.

8. REPORT OF TREASURER- WANDA AVERY

Ms. Avery said that interest rates were at 1.97 percent today.

9. BUDGET REPORT – DIRECTOR OF FINANCE GAUS

Director of Finance Gaus reported that Water Sales for the 6-month period are slightly ahead of the budget by $250,000. Other income is also higher than expected by $325,000, due in part to the monies received from the Williams settlement. Interest Income is higher due to the bond proceeds monies, around $5 million invested at a 5.3 percent rate and $22 million at a 3.4 percent rate. The Operating expenses are over budget by $326,000, due to a combination of additional water purchases and some expenses that were below what we anticipated.

Mr. Gaus then reviewed the Departmental Budgets. He pointed out that Water Quality and Engineering are below what we had estimated and this is due to studies that are still going on and some capital projects that have not been finalized. Collectively, we had anticipated spending about 65 percent of the budget and we only have spent 49 percent. This means we have about $3 million additional funds that have allowed us to earn some more interest.

10. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Operations Manager Rogers said that we started taking raw water into Sweetwater Lake on December 30th until the 4th of January. We were getting 135 acre-feet per day instead of our budgeted 120 acre-feet. We stopped while the aqueduct was down, and resumed taking water on the 17th of January. If we continue at the present rate, we will end up with 8,300 acre-feet instead of the 8,000 that we had originally estimated.

Operations Manager Rogers stated that from July through January we have received 5.92 inches of rainfall at Sweetwater Reservoir, with the average for 114 years at 5.69 inches. At Loveland Reservoir the rainfall through January was 6.59 inches, and the 114-year average was 7.62 inches. He expects we will get 2.73 inches in February. Operations Manager Rogers also reported on the number of mains that we have replaced over the last 25 years. He noted that 77 percent of the mains in the ground in our service area are asbestos cement, 2.53 percent are cast iron, 8.6 percent are PVC, and 11.2 percent are welded steel.

B. Report of General Manager Bostad: General Manager Bostad apprised the Board of a tour provided yesterday to USGS senior staff and scientists. They toured our water system to review four major study objective areas that we are working and coordinating with USGS. These areas are the Multimedia Water Quality Monitoring Program, the Formation of Disinfectant Byproducts as associated with future drinking regulations, Hydrogeology of the San Diego Formation, which will help provide us answers for future development of the Demineralization Plant, the National City Wells, and an evaluation of the Arroyo Toad breeding and behavior in relationship to water transfers between Loveland and Sweetwater. He also reported on a tour of the Demineralization Facility hosted by Operations Manager Rogers for the Chula Vista Kiwanis Club.

He also gave a brief report regarding a meeting with David Merk from the Port District today. He was told that the Port would be initiating a letter to Sweetwater Authority and other interested parties regarding Seawater Desalination Feasibility and Study. He noted that he had met with Senior Staff members at Otay Water District regarding feasibility and technical capabilities to provide wholesale water service and/or provide storage at Sweetwater Reservoir and other possible future opportunities, from storage and treatment at Loveland to desalination.

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

Director Wright said that he had not attended any Bay Delta meetings recently. He thinks the agriculture people are going to take a strong lead in CALFED activities.

12. DIRECTORS’ COMMENTS

Director Pocklington said SDCWA has hired McGuire Environmental Consultants to evaluate Chlorine Dioxide at Skinner. They will be feeding information back to the CWA probably in March and he will keep us abreast. They are concerned about the taste and odor. He also said that Metropolitan did pass the fluoride issue and it would take until 2006 before we could start seeing the difference. It did not resolve the issue here because we are a raw water agency. On April 16, 2003 at 7:30, there will be a legislative roundtable at the SDCWA and Senator Denise Ducheny will be speaking.

Director Wright said that he took the opportunity to ask the Mayor of Chula Vista after his State of the City Address and he was responsive and seemed to be in general very knowledgeable about water matters. He referred to a couple of articles he distributed on the desalination plant in Tampa and he strongly suggested that the Board read them. He said these are the problems that we could face. He said that Covanta Water is claiming that they need $1.8 million in unforeseen costs because of unexpected obstacles such as varied pipes and concrete vaults including a 9 foot diameter pipe near the line that takes the seawater to the desalination plant. The construction contract has been delayed to early April. Another article dated February 4, 2003 talks about them missing the deadline and there being penalties involved. The delay is in treating the salty bay water before it runs through ultra-fine membranes that filter out salt, turning the seawater into drinking water.

13. CLOSED SESSION

There was no need for one.

14. ADJOURNMENT

With no further business before the Board, Chair Doud adjourned the meeting at 6:59 p.m., to the hour of 3:30 p.m. on February 26, 2003.