minutes

Regular Meeting

Governing Board of Sweetwater Authority

February 14, 2007

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, February 14, 2007, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Beauchamp called the meeting to order at 6:00 p.m.

• ROLL CALL

Directors Present: Alkire, Beauchamp, Doud, Morrison*, Pocklington, Thomas and Welsh

Directors Absent: None

Others Present: General Manager/Treasurer Bostad, Operations Manager Rogers, Legal Counsel Cowett, and Board Secretary Schoonderwoerd. Staff members: Rick Alexander, Debra Farrow, Mark Molsberry, George Silva, Jim Smyth, Don Thomson, and Tom Woodrum

• PLEDGE OF ALLEGIANCE TO THE FLAG
Director Alkire 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 none.

ACTION CALENDAR ITEMS

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA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

2. APPROVAL OF MINUTES

Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve the minutes of the January 24, 2007 meeting. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve Warrants 108611 through 108904 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of February 5, 2007)

A. Director Welsh made a motion, seconded by Director Thomas, that the Governing Board approve the continued participation in the State of California Purchase Card Program and adopt Resolution 07-02 authorizing the General Manager to execute the “Addendum to State of California Purchase Card Program Master Service Agreement (DGS MSA 5-06-99-01.)” The motion carried.

At this time, the Finance and Personnel Committee report continued with Items B. and C. Following the Board’s actions on those items, the Chair called for a roll call on Resolution 07-02.

*Note: Director Morrison entered the meeting at 6:06 p.m. and was not present for the vote on Item A.

Upon said motion made by Director Welsh, seconded by Director Thomas, the following resolution:

RESOLUTION 07-02

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY APPROVING ITS PARTICIPATION AS A PARTICIPATING AGENCY
IN THE STATE OF CALIFORNIA PURCHASE CARD PROGRAM MASTER
SERVICES AGREEMENT AND DESIGNATING GENERAL MANAGER
AS THE AUTHORIZED SIGNATORY

was passed and adopted by the following vote to wit:

Ayes: Directors Alkire, Beauchamp, Doud, Pocklington, and Thomas
Noes: None
Absent: None
Abstain: Director Morrison

B. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board adopt the California Public Employees’ Retirement System 457 Deferred Compensation Plan through Resolution 07-03. In response to an inquiry from Director Pocklington, Director of Finance Farrow will report back to the Board regarding eligibility of Board members for the program and minimum/maximum investment options. The motion carried.

Upon said motion made by Director Welsh, seconded by Director Pocklington, the following resolution:

RESOLUTION 07-03

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY APPROVING ADOPTION OF THE CALIFORNIA PUBLIC EMPLOYEES’
DEFERRED COMPENSATION PLAN

was passed and adopted by the following vote to wit:

Ayes: Directors Alkire, Beauchamp, Doud, Morrison, Pocklington, Thomas and Welsh
Noes: None
Absent: None
Abstain: None

C. Director Welsh made a motion, seconded by Director Thomas, that the Governing Board approve the selection of Bartel & Associates, LLC, 411 Borel Avenue, Suite 445, San Mateo, California 94401, to provide actuarial services in accordance to GASB 45 and authorize staff to proceed with contract negotiations for the final scope and budget, not to exceed $15,000 to be funded from the Repair and Replacement Reserve Fund. In response to inquiries from Director Doud, Director of Finance Farrow stated that the Authority is required to have this in place by the end of FY 2009. Mr. Rogers added that requests for proposals (RFPs) were not sent out because that is required by the Consultant Selection Policy for contract amounts of $75,000 or more. Mr. Bostad stated that due to the importance of this issue and Mr. Bartel’s identified experience in this field, staff brought this item to the Board for awareness and discussion. Based on the GASB 45 requirements, this will be a one-time contract. The motion carried.

5. NEW BUSINESS

A. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve the request from Helix Water District to send a resolution of support to ACWA/JPIA concurring in the nomination of Chuck Muse to the Executive Committee. A resolution will be brought to the next Board meeting for adoption. The motion carried.

B. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve the request from the Municipal Water District of Orange County to send a resolution of support to ACWA/JPIA concurring in the nomination of Joan Finnegan to the office of Vice President. A resolution will be brought to the next Board meeting for adoption. The motion carried.

6. REPORT OF THE SWEETWATER AUTHORITY DIRECTOR TO THE WATER CONSERVATION GARDEN AUTHORITY

Director Beauchamp reported that he attended today’s Board meeting at the Garden. The Garden has suffered severe damage from the recent frost, and an application will be submitted to the Office of Emergency Services to help pay for trimming and hauling of dead material. The Garden Board decided that in lieu of set fees for tours, the Garden will ask for tax deductible donations. An alcohol permit has been acquired, so the Garden will now be able to host events such as weddings and other receptions with a set fee structure. A part-time volunteer and children’s program coordinator has been hired. General Manager Bostad added that Sweetwater Authority is becoming more involved in the children’s tours. Upcoming events include a California Friendly Plant Sale on March 17th, the opening of the Fire-Wise Garden on April 12th, the opening of a bird and butterfly garden on May 11th, and the Spring Garden Festival on May 19th. Director Beauchamp reported that Cuyamaca College has a few major buildings under construction, including a theater within the new Communications Building, which will hopefully be available to the Garden for larger seminars.

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

A. Director Doud made a motion, seconded by Director Pocklington, that the Governing Board approve per diem for Directors who wish to attend the burrowing owl release at Sweetwater Reservoir on Thursday, February 15, 2007, at 1:00 p.m. The motion carried.

B. Council of Water Utilities, San Diego County Meeting, Stone Ridge Country Club, Tuesday, February 20, 2007, 7:15 a.m. – Program: Peter MacLaggan, Senior Vice President, Poseidon Resources Corporation – “Carlsbad Desalination Project Update.” Directors wishing to attend this pre-approved meeting will contact the Secretary. No action was required by the Governing Board.

C. Director Pocklington made a motion, seconded by Director Alkire, that the Governing Board approve per diem for Directors who wish to attend the tour of the Carlsbad Desalination Pilot Facility on Thursday, March 1, 2007 at 10:00 a.m. Legal Counsel Cowett stated that this event will be posted as a Special Meeting of the Board. The motion carried.

D. California Special Districts Association Strategic Planning for Special Districts – Friday, March 16, 2007, at Zone 7 Water Agency, Pleasanton, California. No members of the Board expressed interest in attending this pre-approved event. No action was required by the Governing Board.

E. Association of California Water Agencies 2007 Legislative Symposium – Wednesday, March 21, 2007, 9:00 a.m. – 3:30 p.m., Sacramento Convention Center. Directors wishing to attend this pre-approved event will contact the Secretary. Director Doud announced that ACWA sent invitations to a luncheon during this Symposium to legislators in Sacramento, and that General Manager Bostad would be sending personal invitations from this Board to Senator Ducheny and Assembly Woman Salas as well. No action was required by the Governing Board.

F. Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve per diem for Directors who wish to attend the San Diego County Water Authority water science school program, “H2O, Where Do You Go?” on Friday, March 23, 2007, at 9:00 a.m. or 10:00 a.m., at Cook Elementary School in Chula Vista. The motion carried.

8. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Doud stated that he arrived at the scheduled time to attend the Chula Vista Bayfront Master Plan Citizens Advisory Committee meeting on January 30th, and that he and many others were not aware that it had been cancelled.

Director Doud reported on his attendance at the First Friday meeting on February 2nd. Doctor Johnson, a retired Rear Admiral and the CEO of Meals on Wheels, was the guest speaker. With more than 2,500 San Diegans annually donating their time to Meals on Wheels, the San Diego County program is very rare in that it does not accept federal funding for its support like most do. He distributed handouts to the Board and stated that they are looking for volunteers.

Chair Beauchamp reported on his attendance at the South County Economic Development Council meeting on February 6th. The Council’s meetings are now being held at the new Education Center in National City. The agenda included a program on the workforce. He said this organization offers many networking opportunities for the Authority.

Director Doud reported on his attendance at the Chula Vista Interagency Water Task Force meeting on February 12th. Elections were held for the upcoming year, and Councilman Castaneda was elected the new Chair and Councilman Rindone the new Vice Chair. Councilman Castaneda gave a report on solar power and an amendment to a bill in Sacramento carried by Keogh attempting to get water districts to put in solar power, then sell electricity to cities. General Manager Bostad provided an introduction of the burrowing owl habitat at Sweetwater Reservoir and explained the South County Water Supply Strategy.

9. QUARTERLY REPORT OF DIRECTORS’ EXPENSES 2ND QUARTER FY 2006-07

The spreadsheet report was provided to the Board for information purposes and there were no comments from the Board.

10. MANAGEMENT REPORT

Report of Operations Manager Rogers: Mr. Rogers reported on the burrowing owl habitat and how the scheduled release came about. He explained that Mark Molsberry, The Authority’s Superintendent of Construction, has a son who worked as an apprentice in the Authority’s watershed and now works at the Chula Vista Nature Interpretive Center, which has a colony of burrowing owls. The Nature Center Director wondered where they could be released, and Mr. Molsberry’s son suggested that he contact the Authority about releasing them in its habitat. Mr. Rogers then showed slides of the rainfall at Sweetwater and Loveland Reservoirs, which indicated that the rainfall to date is just slightly higher than 2001-02, the driest year on record.

Report of General Manager Bostad: Mr. Bostad directed the Board’s attention to the monthly report of activities for December 2006 in the Board agenda packet. Director Alkire inquired as to whether the water from the second aqueduct was treated and commented that the combined power cost was $0 per acre-foot. Mr. Bostad responded that this 1,239 acre-feet of water is untreated. He said that under special conditions we have the ability to take some treated water, usually as a back-up for the treatment plant. We are currently in a seasonal storage program during the winter, and rather than place that water in the lake, we take the water off the aqueduct into the treatment plant without pumping and credit that aqueduct water as local water treated and put it in storage. Mr. Rogers added that this method avoids the $30 per acre-foot cost to pump water from the lake into the treatment plant.

Mr. Bostad then pointed out the Authority’s investment report in the agenda packet. He reported that last week he and Rick Alexander went to Washington, D.C. and made a number of successful connections. Details will be brought to the Board through committee reports in the future. He has also been attending meetings at CWA to discuss the exchange concept as part of the Authority’s water purchase from Poseidon, and discussions are going along well in that area. Peter MacLaggan of Poseidon indicates that there is some interest in purchasing additional water from other agencies as well. Finally, Mr. Bostad reported that ACWA has initiated an executive search for a new CEO to replace Steve Hall.

11. DIRECTORS’ COMMENTS

Director Thomas wished everyone a happy Valentine’s Day. She notified the Board about a meeting of the Southwest Chula Vista Civic Association at 6:45 p.m. on February 22nd at the MAAC Project, 1385 Third Avenue. There will be a presentation by representatives from Home Depot, which is considering opening a store on Third Avenue. This is a controversial issue. She suggested that the Board consider this association as one of its represented community organizations in the future. Director Thomas also reminded the Board about the upcoming business trade show sponsored by the Bonita Business and Professional Association on March 13th. It was noted that consideration of staff participation and exhibits at this event will be brought to the Communications Committee on February 26th.

Director Alkire commented that he was in the Home Depot on “H” Street recently and noticed that they had an abundance of toilet rebate vouchers with the new expiration date.

Director Morrison commented that he also saw the vouchers at the “H” Street and Imperial Avenue Home Depot stores. He also noted that the CWA news release of January 1st listed Sweetwater Authority has having only clothes washer vouchers available. Staff will follow up on this to insure that the release has been updated.

Director Doud commented that Home Depot also has vouchers for the front-load washers. He read a quote from Lily Tomlin: “The formula for water is H20. Is the formula for an ice cube H20 squared?”

Chair Pocklington commented on two important issues considered at recent MWD meetings. The Board voted to take over the Center for Water Education for $4.9 million. The Board wants to dissolve the present 501 and later send out RFPs to see whether there is anyone else who is able to handle the Center successfully. The building itself is worth at least $20 million. He noted that CWA and Beverly Hills were the only votes against this action. MWD was recommending a 6.9 percent rate increase, and yesterday an alternative was reached for a 5.8 percent increase. It was recommended that $10 million be taken out of the $95 million repair and replacement budget to help reduce the rate. There was discussion that, this being a very dry year and because of Owen Valley, Los Angeles is looking at buying more water from MWD. At $29 million for every hundred thousand acre-feet, if extra water is sold, it was recommended that the first $10 million go back into the repair and replacement budget. The 5.8 percent rate increase would be effective January 1, 2008. Director Pocklington also commented that he was recently visiting relatives in North Carolina where they are dependent on groundwater. One problem with groundwater is that much of it is contaminated by agricultural waste. He noticed that they are now building a treatment plant on the river that flows through the community he was visiting. But, he believed that they may still experience contamination problems with the waste going into the river.

12. CLOSED SESSION
There was none.

13. ADJOURNMENT

With no further business before the Board, Chair Beauchamp adjourned the meeting at 6:53 p.m., to the hour of 3:30 p.m. on February 28, 2007.