minutes

Regular Meeting

Governing Board of Sweetwater Authority

February 26, 2003

· ROLL CALL

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

Directors Absent: Welsh and Wright.

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

· PLEDGE OF ALLEGIANCE TO THE FLAG
Chair 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
There was none.

· ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA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

1. APPROVAL OF MINUTES

Director Wolniewicz made a motion, seconded by Director Beauchamp, that the Board approve the minutes of February 12, 2003. The motion carried.

2. APPROVAL OF DEMANDS AND WARRANTS

Director Pocklington made a motion, seconded by Director Wolniewicz, that the Board approve Warrants 87150 through 87374 including all voided checks. The motion carried.

CONSENT CALENDAR ITEMS

3. FINANCE AND PERSONNEL COMMITTEE (Meeting of February 18, 2003)

CONSENT ITEMS

Director Wolniewicz made a motion, seconded by Director Pocklington, that the Governing Board approve consent Items A through C. The motion carried.

A. Authorize staff to enter into a sole-source contract with Southland Technology for the cyber security project.

B. Sweetwater authority vehicle servicing costs versus outside vendors. This was an information item and no action was required by the Governing Board.

C. Authorize staff to draft a resolution amending Resolution 85-06 to include other accepted methodologies for allocating billable water use for multi-unit dwellings.

4. OPERATIONS COMMITTEE (Meeting of February 19, 2003)

CONSENT ITEMS

Director Beauchamp made a motion, seconded by Director Wolniewicz, that the Governing Board approve consent Items A through C. The motion carried.

A. Approve additional funding in the amount of $95,500 from the Repair and Replacement Reserve Fund for the deficit associated with the 12-inch main replacement project at National City Boulevard, 16th to 18th Streets.

B. Approve funding in the amount $120,000 for the Quintard Street widening to be allocated from the Repair and Replacement Reserve Fund with the understanding that the City of Chula Vista will share 50 percent of the final cost.

C. Approve the sole-source contract for the Cherry Hills Tank Site Landscaping to Alvizia Landscaping, 2520 Cactus Road, San Diego, California, 92154, in the amount of $23,314 and that $10,000 be allocated from the Unallocated Reserve Fund for the project deficit.

5. COMMUNICATIONS COMMITTEE (Meeting of February 25, 2003)

ACTION ITEMS

A. Director Pocklington made a motion, seconded by Director Wolniewicz, that the Governing Board approve the purchase of denim shirts with an embroidered Sweetwater logo for use by Board members and staff involved in public outreach events. The motion carried.
B. Director Pocklington made a motion, seconded by Director Wolniewicz, that the Governing Board approve the production of 2,500 cloisonné pins in the selected design (sample 4), at a cost not to exceed $4,000. The motion carried.

Director Welsh arrived at 3:38 p.m.

C. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve funds in its next fiscal budget to expand distribution of customer publications to all postal patrons in the service area, at an anticipated first-year cost increase of $67,000. The motion carried.

D. Information items; press releases, other items prepared for the public information distribution, update on major projects. No action was required by the Governing Board.

E. Director Pocklington made a motion, seconded by Director Welsh, that the Governing Board approve the purchase of an ad in the March issue of the San Diego Metropolitan Uptown Examiner & Daily Business Report, at a cost not to exceed $1,735.

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 commented on the latest news about the IID Agreement. He then reviewed for the Board issues included in the Fiscal Policy, Engineering, and Water Policy Committees that will be discussed at the Board Meeting of February 27th.

Mr. Valderrama also gave his report on issues under the Public Affairs, Administrative and Legal, and Planning and Environmental Committees that are included in the Agenda for discussion by the Board.

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

A. National City State of the City Address – Thursday, March 13, 2003, at 6:00 p.m. at Martin Luther King, Jr. Community Center. Director Pocklington made a motion, seconded by Director Wolniewicz, that the Governing Board approve per diem for Directors to attend this event. The motion carried.

B. Water Education Foundation & Association of Ground Water Agencies – Ground Water Quality + Ground Water Quantity = One Issue – April 8-9, 2003, Doubletree Hotel, Ontario. Directors Beauchamp, Doud, Pocklington, Welsh and Wolniewicz will be attending this pre-approved event. No action was required by the Governing Board.

C. CLE International – California Water Law & Policy Super Conference – April 10-11, 2003 – The Pan Pacific Hotel, San Francisco. Directors Welsh and Wright will attend this event. Director Welsh made a motion, seconded by Director Wolniewicz, that the Governing Board approve per diem for directors who wish to attend this event. The motion carried.

8. ADOPTION OF RESOLUTIONS

A. Upon a motion made by Director Beauchamp, seconded by Director Welsh, the following Resolution:

RESOLUTION 03-02
CONCURRING IN THE NOMINATION OF JOAN FINNEGAN TO THE EXECUTIVE COMMITTEE OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES JOINT POWERS INSURANCE AUTHORITY (ACWA/JPIA)

was passed and Adopted by the following vote, to wit:

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

B. Upon a motion made by Director Beauchamp, seconded by Director Welsh, the following Resolution:

RESOLUTION 03-03
CONCURRING IN THE NOMINATION OF MELODY A. HENRIQUES TO THE EXECUTIVE COMMITTEE OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES JOINT POWERS INSURANCE AUTHORITY (ACWA/JPIA)

was passed and Adopted by the following vote, to wit:

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

9. REPORT OF TREASURER – WANDA AVERY

Ms. Avery reported that the interest rate at Local Agency Investment Fund (LAIF) is 2.03 percent.

10. BUDGET REPORT – DIRECTOR OF FINANCE GAUS

Director of Finance Gaus reviewed the report for the 7-month period and highlighted the following: Water Sales is $261,000 higher than we anticipated; Other Income is also higher than we had estimated by $264,288, due in part to the monies received from the energy settlement; Interest Income is $169,681 higher than projected; and the Operating Expenses are down by $478,000. Mr. Gaus also reviewed the departmental budgets. Overall, we had estimated spending 71 percent for Capital projects and at this time we have spent 52 percent.

11. MANAGEMENT REPORT

A. Report of Rainfall and Reservoir Levels – Operations Manager Rogers: Operations Manager Rogers reported that we are taking water from the aqueduct. So far, we have taken about 3,700 acre-feet at approximately $363 per acre-foot versus the normal raw water price of $412. At the end of April, we will have taken about 8,300 acre-feet, which represents savings of about half a million dollars.

Operations Manager Rogers reviewed the Sweetwater Reservoir Rainfall and noted that, at the end of February, we are over our 100-year average. Year-to-date, we have received 9.79 inches and the average for this date is 7.99 inches. It is the first time that we have been this far over on our reservoir rainfall in about 5 years. At Loveland Reservoir, the rainfall to date has been 9.75 inches and the average is 10.35.

B. Report of General Manager Bostad: Mr. Bostad gave a brief report on the special joint workshop at the Port last Tuesday, where a team of 25 professionals recommended the award of Planning and Design Services for the Chula Vista Bayfront Master Plan Study to Carrier, Johnston, Cooper, Robertson and Partners. He added that staff is conversing with the Port District and the County Water Authority regarding the possibility of a Memorandum of Understanding to move forward with desalination. He distributed a copy of the letter that he received from David Merk, Director of Environmental Services for the Port, that basically confirms moving forward with the issue.

General Manager Bostad informed the Board that staff was ready to provide a two-hour workshop on the Water Resources Master Plan, as approved by the Board last Fall. After considering several dates, it was agreed that the Workshop would be given in conjunction with the South Bay Irrigation District Board meeting on March 21st at 3:00 p.m. This workshop will provide an overview of the water demand projections for Sweetwater Authority over the next 10-20 years, review existing water supply considerations, identify conceptual water supply opportunities and cost estimates for alternative water supplies, etc.

General Manager Bostad mentioned the joint letters from the Managers from Sweetwater, Otay, Padre Dam and the City of San Diego regarding the CWA reservoir intertie feasibility study. He stated that Operations Manager Rogers would be taking the letter to Congress to request funding for an additional $200,000 to update the U.S. Army Corp report that evaluates the pipeline and the important option of treatment at Loveland.

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

Director Wright was not present.

13. DIRECTORS’ COMMENTS

Director Pocklington thanked Director of Distribution Olson for giving the Board an opportunity to tour the Operations Center facilities when the Operations Committee met there last week. He had not been there in years and it was nice to see what we are doing with some of our money. He thinks that scheduling some committee meetings at some of the other locations would be a good opportunity to tour the different facilities.

Director Beauchamp said the tour was very good. He suggested the possibility of donating the fire hydrants that we have as scrap items to the City of Tecate, which is the sister city of the City of National City. He also mentioned the issue of the Port dissolution and its effect on Sweetwater Authority with regard to desalinization.

Director Wolniewicz mentioned a dual flush toilet from Australia, which is now being offered by MWD with an $80 rebate.

Director Inzunza said that at the last Council meeting they discussed the possibility of meeting with the representative for the San Diego County Water Authority and the Sweetwater Authority on a regular basis. They agreed to meet frequently to discuss water and pipe issues and keep the City staff up to date on those issues. He also made reference to the Port issue in relation to the City of National City.

14. CLOSED SESSION

There was no need for one.

15. ADJOURNMENT

With no further business before the Board, Chair Doud adjourned the meeting at 4:32 p.m., to the hour of 9:00 a.m. on March 11, 2003.