minutes

Regular Meeting

Governing Board of Sweetwater Authority

February 22, 2006

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, February 22, 2006, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Vice Chair Beauchamp called the meeting to order at 3:32 p.m.

ROLL CALL

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

Directors Absent: Pocklington and Welsh.

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
Ms. Vanessa Perez, member of the public.

Vice Chair Beauchamp called for the record to show that he was standing in for Chair Pocklington, who is absent due to a previous commitment.

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

OPPORTUNITY FOR PUBLIC COMMENT (Government Code Section (54954.3)
There were no comments from the public present.

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA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 Doud made a motion, seconded by Director Morrison, that the Governing Board approve the minutes of the February 8, 2006 meeting. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve Warrants 103965 through 104177, including all voided checks. The motion carried.
Note: Director Welsh entered the meeting at 3:34 P.M.

4. OPERATIONS COMMITTEE (Meeting of February 15, 2006)

Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve the request to quitclaim the San Diego Land and Town Company easement, and that the Olson Company be responsible for all costs associated with processing the quitclaim. The motion carried.

Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve funding from the Repair and Replacement Fund in the amount of $75,000 for the Authority’s time and materials contractor to perform the work on the Mile-of-Cars Way and Wilson Avenue main leak. The motion carried.

Director Doud made a motion, seconded by Director Morrison, that the Governing Board approve the request to quitclaim the Kimball Brothers easement, and that NATCAT be responsible for all costs associated with processing the quitclaim. The motion carried.

Discussion of Proposition 50 Funding. Director of Environmental and Governmental Services Alexander provided a brief overview of three projects that have been submitted to the state for Proposition 50 funding. These projects include the Sweetwater Reservoir Exotic Species Removal and Habitat Restoration program; the Otay River Desalination Project Feasibility Study; and the Zero Discharge Solar Distillation Pilot project. Another project supported by Sweetwater Authority is the Regional Brine Conveyance Facility Feasibility Study, which will be submitted by the County Water Authority. The Board will be kept apprised of the state’s review of these projects as things progress. This was an information item only, and no action was required by the Governing Board.

E. Discussion of Private Hydrant Operation by Local Fire Departments. This was an information item only, and no action was required by the Governing Board.

Note: Legal Counsel Cowett entered the meeting at 3:43 P.M.

5. NEW BUSINESS

Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve the request from San Bernardino Valley Water Conservation District to concur in the nomination of Melody A. Henriques-McDonald to maintain her seat on the ACWA/JPIA Executive Committee. A Resolution of Support will be prepared for adoption at the next Board meeting. The motion passed.

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

Director Morrison reported that Director Pocklington had given a report on the Administrative and Finance, Water Planning, and Imported Water Committees earlier in the week at the South Bay Irrigation District Board meeting. Director Morrison said that the most important item on the Engineering and Operations Committee agenda deals with the Hodges Pump Station project. The engineering firm that put the bid package together miscalculated and estimated the cost to be approximately $30 million; however, the low bids came in at the $55 million range. The Board will vote whether to accept the low bid. If the project was put back out for bid, the time would be extended, there would be no guarantee that lower bids would be received, and costs could be higher. The engineering firm is not accepting payment for its services on this project. Director Morrison said that the item on the Legislation, Conservation and Outreach Committee that will probably generate the most discussion deals with zero consumption (waterless) urinals. Within the county the installation of waterless urinals is being subsidized because they are great water savers. But, the plumbing codes contain language that makes them illegal because they contain no water trap. Director Morrison said the Board will be looking at scientific research performed on this subject.

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

Local Government Commission – Building Livable Communities: Multiplying the Benefits of Smart Growth, March 16-19, 2006, Ahwahnee Hotel, Yosemite National Park, CA. No action was taken on this item.

Water Education Foundation Lower Colorado River Tour, April 5-7, 2006. No Directors expressed interest in attending this pre-approved event. No action was required by the Governing Board.

8. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Welsh reported on attending the CSDA quarterly meeting on February 16th. She said the presentation on what was going on in Sacramento was very good. She also found the presentation on activities in Iraq by the Marine combat engineers at the February 21st Council of Water Utilities meeting very interesting. Director Welsh also left printed information that she received at the County of San Diego’s “Investing Public Funds, Fundamentals of Managing Your Portfolio” workshop on February 14th with the Secretary for viewing by any interested directors or staff.

Director Doud reported that, as the CSDA San Diego Chapter President, he made appointments to several committees at the quarterly meeting on February 16th. He appointed Director Beauchamp to serve on the nominating committee, and Director Welsh to serve on the scholarship committee.

Director Beauchamp reported that he attended a trade show in Los Angeles for California landscape contractors last week. MWD had a display on water conservation, plant materials, and other items of interest. The City of Los Angeles Public Works has an interest in landfill diversion and had an interesting display on mulching. He said it was interesting to see all of the Xeriscape and low water-use plant materials.

Director Morrison agreed with the comments made by previous directors on the CSDA and Council of Water Utilities meetings. As the Authority’s designated representative to the National City Chamber of Commerce, he reported on his attendance at the Chamber’s monthly meeting. The meeting dealt with issues related to development in downtown National City. One item discussed was the need to take a look at the water infrastructure within the downtown area. They are looking at putting in up to 4,000 new units. The infrastructure is healthy now for current use, but not necessarily for new projects of this type.

Director Alkire commented that, at the Council of Water Utilities meeting, the master sergeant making the presentation mentioned that marines leaving the service have achieved a certain level or grade, and he requested clarification. Mr. Bostad said that many marines who do not make the service a career are highly trained in electrical, engineering, mechanical, water and wastewater treatment, and systems operations, but additional work outside the Marine Corps may be needed for licensing in the water treatment plant certification program. There was interest at the meeting from some general managers and board members about developing coordination with the Marine Corps to solicit these trained individuals and help provide new resources to the water community.

9. BUDGET REPORT – INTERIM DIRECTOR OF FINANCE FARROW
Report as of January 31, 2006

Interim Director of Finance Farrow reported that, half way through the year, Water Sales are higher than budgeted by approximately $379,000. Other Income is below budget by $67,327. Ms. Farrow noted that $100,000 of the $2,389,300 total budget pertains to Title XVI grant monies for the fishing program that were anticipated in January. Next month will reflect $111,000 of those funds received in February. Interest Income is roughly $281,000 over budget. Operating Expenses are over budget by $220,502, due to water purchases of about $400,000 more than anticipated and higher chemical costs as a result of the hurricanes. Overall, the net operating budget is $371,000 higher than budgeted. We are about 32 percent spent on Capital Projects as opposed to the budgeted 43 percent.

10. QUARTERLY REPORT OF DIRECTORS’ EXPENSES – 2ND QUARTER 2005-2006

For information purposes, Vice Chair Beauchamp drew the Board’s attention to the quarterly expense report distributed at the meeting.

11. MANAGEMENT REPORT

Report of Operations Manager Rogers: Operations Manager Rogers reported that preliminary numbers on the Loveland water transfer to Sweetwater Reservoir estimated a 14 percent loss, and Water Resources staff reports a final number of a 13.5 percent loss, which is outstanding under dry conditions. We had expected to lose as much as 25-30 percent. Mr. Rogers also stated that he would be driving the van for directors who are attending the Best Best & Krieger Ethics Training on March 1st.

Report of General Manager Bostad: General Manager Bostad reported that at the March 8th Board meeting, Mr. Scott Crider from San Diego Gas & Electric/Sempra will provide a presentation on the Sunrise Power Link. At the following Board meeting on March 22nd, Mr. Joe Otahal and a public information officer from Duke Energy South Bay will provide a presentation on the power plant in the perspective of a local power facility. He thought this would be valuable additional information for the Board on this project. Director Salas said that she attended the San Diego Chamber of Commerce congressional luncheon where the Sunrise Power Link was a topic of discussion. Polar opposites Duncan Hunter and Bob Filner agreed that this was not necessary. Mr. Bostad also drew the Board’s attention to the management report for the month of January included in the agenda package.

12. DIRECTORS’ COMMENTS

Director Morrison commented on negotiations ongoing between the Cities of National City and Chula Vista on boundary adjustments. There are a number of properties on the National City side of the river that could be transferred to the City of Chula Vista, as well as a number of properties on the other side of the river that could be transferred to the City of National City in order to straighten out the borderline. The properties that were developed on the Chula Vista side of the river are revenue-generating properties, and the properties developed on the National City side are non-revenue generators. Director Morrison is hopeful that an agreement will be reached to take the boundary down the channel, maintaining the revenues with the individual cities, including future development. This would mean that the Reynolds Desalination Facility would then become part of the City of National City.

Director Welsh introduced Vanessa Perez in the audience, a student at Marion High School as well as Chula Vista Adult School. She described Vanessa as an outstanding student who attended the Board meeting because she wanted to know more about the water industry.

Director Beauchamp said he attended a meeting in Sacramento as a representative of a state committee on oil spill prevention and response. This prevented him from attending the Council of Water Utilities meeting.

13. ADJOURNMENT

With no further business before the Board, Vice Chair Beauchamp adjourned the meeting at 4:14 p.m., to the hour of 6:00 p.m., on March 8, 2006.