minutes

Regular Meeting

Governing Board of Sweetwater Authority

March 26, 2008

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, March 26, 2008, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Beauchamp called the meeting to order at 3:30 p.m.

• ROLL CALL

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

Directors Absent: None

Others Present: General Manager/Treasurer Bostad, Operations Manager Rogers, Legal Counsel De Sousa, Treasurer Farrow, and Board Secretary Schoonderwoerd. Staff members, Jack Adam, Janet Gonzalez Kevin Kasner, Hector Martinez, Bill Olson, George Silva, and Don Thomson

• PLEDGE OF ALLEGIANCE TO THE FLAG
Director Pocklington 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.

• CHAIR’S PRESENTATION
There was none.

ACTION CALENDAR ITEMS

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA

Director Welsh made a motion, seconded by Director Thomas, that the consideration of charter sponsorship in the Alliance for Water Efficiency be added to the agenda as Item 6. Chair Beauchamp distributed information regarding this sponsorship to the Board and noted that the request was received today by staff, with a response deadline of April 1, 2008. The motion carried.

2. APPROVAL OF MINUTES

Director Pocklington made a motion, seconded by Director Thomas, that the Governing Board approve the minutes of the March 12, 2008 meeting. The motion carried with Chair Beauchamp abstaining due to his absence from that meeting.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Alkire made a motion, seconded by Director Morrison, that the Governing Board approve Warrants 113610 through 113762 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of March 17, 2008)

Chair Welsh made a motion, seconded by Director Doud, that the Governing Board approve one new Customer Service Representative position; the increase from three-quarter/year to full-time position for the Human Resources Coordinator; the reclassification of the Buyer II position to Junior Buyer; a salary adjustment for the Water Treatment Superintendent/Principal Engineer position; leaving one Engineer position vacant for six months; and the renewal of four (4) intern positions, for a new annual cost of $71,928. Chair Beauchamp asked for clarification on the need for adding a new position in an agency that is not expanding. Operations Manager Rogers made that clarification and explained the rationale behind each of the requests as presented. Director Thomas added that she believes the salary level for the lab intern should be higher or include a stipend for mileage. The motion carried.

5. OPERATIONS COMMITTEE (Meeting of March 19, 2008)

A. Director Alkire made a motion, seconded by Director Pocklington, that the Governing Board authorize staff to identify the owner/manager of all mobile home parks in the Authority’s service area, ensuring they receive enough “bill stuffers” to provide one to each occupant of their park. Director Morrison asked how this applied differently to mobile homeowners as opposed to apartment dwellers or renters. Director Doud responded that the issue is being approached in small steps beginning with mobile homeowners, and may in the future include apartment and house renters. The motion carried.

B. Director Alkire made a motion, seconded by Director Thomas, that the Committee’s original recommendation be amended and that the Governing Board approve the transfer of funding in the amount of $202,300 from the 2007-08 Expense Contingency Fund into the 2007-08 Capital Contingency Fund for the 1st Avenue improvements project, Naples to Palomar Street, Chula Vista, with the understanding that the City of Chula Vista will reimburse the Authority one-half of the final cost. Director Thomas noted that her concern, as recorded in the Operations Committee minutes, was not the Authority’s ability to obtain the 50 percent reimbursement in the event that the actual cost of the project is higher than the estimate. She clarified that her actual concern was that, in order to avoid a budget problem, a larger amount or another fund could be set aside for this kind of an operational need. Operations Manager Rogers explained that in this year’s budget, the Authority’s Repair and Replacement Fund was broken into two separate contingency funds – the Expense Contingency Fund and the Capital Contingency Fund. Director Pocklington suggested that these be dealt with as staff decisions in the future. Operations Manager Rogers said that, as a matter of record and Board information, notification of contingency fund transfers of this type could be brought to the Board through committee. The motion carried.
C. Director Doud made a motion, seconded by Director Alkire, that the Governing Board award a contract in the amount of $37,820 to Anderson Piping Contractors, Inc., 339 Cypress Lane, El Cajon, CA 92020, for the Sanitary Sewer Improvements for the Robert A. Perdue Water Treatment Plant. The motion carried.

D. Discussion of the relocation of Sweetwater Authority offices. Operations Manager Rogers related information regarding the possible relocation of the Authority’s Administration and Operations buildings in the future as part of the City of Chula Vista and County plans to expand the County Court building. Mr. Rogers reiterated that the discussions are in the initial stage and that the Authority’s current locations are sufficient for now and the immediate future. He assured the Board that the interest of Sweetwater Authority will always be a priority. This was an information item and no action was required by the Governing Board.

Note: Director Doud left the room at 4:11 p.m. and returned at 4:13 p.m.

E. Management’s update on proposed drought ordinance by San Diego County Water Authority. Operations Manager Rogers explained the differences between Sweetwater Authority’s position on a drought ordinance plan compared to CWA’s regional plan. Director Pocklington noted that the CWA Board would be discussing this issue at its meeting tomorrow and expressed the need to proceed slowing. This was an information item and no action was required by the Governing Board.

6. NEW BUSINESS

The Board reviewed information received from Timothy Brick, MWD Chair, on the formation of the Alliance for Water Efficiency, and discussed an invitation to enter into a charter sponsorship. In light of the April 1st deadline to submit a sponsorship, the limited background information provided, and the fact that MWD already held a $50,000 Platinum charter sponsorship, the Board agreed to wait until more information was available. Staff will evaluate the costs and benefits of membership in this organization and bring the item back to the Board through the Finance and Personnel Committee. Director Welsh made a motion, seconded by Director Thomas, that the Governing Board abstain from action regarding membership in the Alliance for Water Efficiency until more information is brought to the Board. The motion carried.

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

Director Pocklington reported on items of interest on the March 27th CWA Board meeting agenda. The Board will consider making a determination to extend one-year water transfers with the Butte and Sutter Extension Water Districts. Director Morrison reported that the Board will consider an amendment to the contract between CWA and Honeywell International for operation of the Voucher Incentive Program and participation in MWD’s “Save A Buck” rebate program, which will cover all households and incur no cost to Sweetwater Authority. Among several bills, the Board will consider a position of support, if amended, on AB 2175 (Laird/Feuer) relating to water conservation. Staff and the Legislation Committee have some concerns regarding this bill, but the author has stated that he will meet those concerns. Also under consideration is a memorandum of understanding between CWA and Cuyamaca Community College for a landscape auditor internship program in the amount of $285,870 for 2008 and 2009. The committee requested a report on which districts will benefit from this program and ensure that funding would be evenly spread out. The Board will consider an amendment to the contract with Mentus, Inc. by $1.6 million to implement the conservation advertising campaign. Director Pocklington continued stating that the Board will consider a professional services contract with Paladin Professional Consultants for $1.8 million to provide claims resolution and litigation support including the forensic analysis of disputed cost and schedule impacts of differing site conditions encountered during tunnel evacuation for the San Vicente Pipeline project. There will be a presentation on CWA’s long-range financial plan, and a decision is expected on April 24th on a $500 million bond issue for capital improvements. Staff is also recommending the purchase of workers’ compensation insurance from Wausau in the amount of $300,210 and confirmed withdrawal from the ACWA-JPIA program effective July 1, 2008. Also on the agenda is the reappointment of Director Morrison representing the City of National City, with a term to expire on March 8, 2014.

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

A. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve per diem for directors who attended the City of Chula Vista State of the City Address on March 18, 2008. The motion carried.

B. Director Pocklington made a motion, seconded by Director Alkire, that the Governing Board approve per diem for Chair Beauchamp’s attendance at the Padre Dam Municipal Water District Board meeting regarding Water Conservation Garden partnership on March 25, 2008. The motion carried.

C. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board approve per diem for directors who attend the Otay Water District Micro-turbine Clean Energy Project dedication on April 10, 2008 at 10:00 a.m. The motion carried.

9. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Morrison reported on the Local Government Commission Ahwahnee Conference on March 13-16. People from all walks of government attended, including the Governor’s office, and the Senate and House, to discuss how we are going to deal with water, growth, greenhouse gasses and carbon footprint. There were many ideas, comments and policies circulating. A candidate for Attorney General was present, and he will be challenging some of the issues. It was obvious that the legislature is only interested in conservation, not new water. He said that it was an interesting conference with attendees very committed to their viewpoints.

Director Thomas reported on the Council of Water Utilities meeting on March 18th. Peter Silva reviewed the IBWC rule and discussed the new system being used to make decisions and have results that can be implemented on both sides of the border. This included the partnering in some of the projects that were involved with cleaning up the New River, the All American Canal and the Colorado River, which may be lost on the Mexican side, and facilitating a resolution to a number of those projects.

Director Alkire reported on the City of Chula Vista State of the City Address on March 18th. There is planning for $15 million in budget cuts for next year, with more cuts to come. The Bay Front project is in place and moving forward, with the EIR expected later this spring. The Olympic Training Center now has the only BMX training track. The City has opened a passport office to provide some relief to the post office. With a new law, the City will hold lenders responsible for the condition of repossessed homes. The mayor lightly touched on the H Street improvements, but gave no details. Other plans mentioned were: the expansion of the courthouse and the new parking structure; plans for the new university center to be called the University Park and Research Center; High Tech High, which has already broken ground for its school; and the National Energy Research Center. There was no word on the Chargers.

Director Morrison attended the National City Chamber of Commerce meeting on March 20th, which featured a presentation on “Turning Knowledge into Action” given by a representative from Tony Robbins Companies.

Director Thomas reported on the WateReuse California Section Conference on March 24-26. She stated that one of the prime topics was the draft white paper on the status of the 2003 recycled water task force recommendations. She mentioned the many sessions she attended, and she will submit a copy of the white paper, as well as a CD of the conference presentation to be copied for the rest of the Board. One main thing referred to was brine line and some possibility of a law that would not permit ocean disposal of brine in the future. Keith Lewinger was honored as one of the starters of this organization. She distributed a letter of invitation for membership, urged becoming a part of the organization, and spoke of an upcoming conference in Long Beach on potable reuse.

Chair Beauchamp attended the Padre Dam Municipal Water District Board meeting on March 25th to hear its decision on joining the Water Conservation Garden as a member at the $25,000 level. The three vote majority was still in place and they voted not to participate. General Manager Bostad suggested that the Conservation Garden leadership could review some of the conservation laws being proposed, have someone develop a system to quantify the value of the Garden, and get political support so that if an agency is a member of the Garden, it is provided a certain level of credit in water use efficiency. Then it will be quantifiable and people will see the direct value.

10. REPORT OF TREASURER

Ms. Farrow reported that, at the end of February, Water Revenue was $1,812,000 or 6.9 percent, under budget. She noted that the new rates were fully in place on all cycles by the end of February. Operating Expenses were $1,940,000, or 8.8 percent, under budget. This can be explained in three categories. In February, all local water was used, saving almost a million dollars in water purchases. On the revenue side, $690,000 in capacity fees were received in February alone. Total capacity fees for the year are $1.2 million, with $300,000 originally budgeted. Interest income was originally budgeted at $1.5 million, and that $1.5 million has already been reached.

11. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Mr. Rogers had nothing to report.

B. Report of General Manager Bostad: Mr. Bostad shared a letter from the Principal at Sweetwater High School commending Authority employee Richard Emerson for being diligent in coordinating a construction project underway right next to the high school during a recent testing period. He was able to make some adjustments so that the project did not interfere with the testing. Mr. Bostad also reminded the Board of the April 9th public hearing on the Carlsbad Desalination Project at the Regional Water Quality Control Board.

12. DIRECTORS’ COMMENTS

Director Doud commented that the City of San Diego Water Department is requesting proposals from civil engineering consultant firms for civil engineering services to plan, design, and construct pumping and conveyance systems for up to four pilot production groundwater wells throughout the City of San Diego groundwater basins. The City is expecting a combined yield of approximately 1,500 – 2,000 acre-feet per year for groundwater, potable and/or irrigation purposes.

Director Pocklington stated that he would be out of town for the next Board meeting, and he regrets not being able to attend the Desal hearing at the Regional Board.

Director Thomas gave Chair Beauchamp a seed kit for a 300-foot Douglas Fir tree that she received at the WateReuse Conference. She thought it was a creative idea to look into. She also said she would bring more information on a criteria-based software, and she wondered if that could be used to assess artificial turf based on the amount of percolation, what products are produced after a wildfire, cost of disinfectant, soil impact, etc.

Director Alkire commented that at the Conservation Garden Board meeting, the President of Cuyamaca College announced that they are now a Steinway facility. They have half a dozen Steinways at $80,000 each. Director Beauchamp added that a concert was also scheduled in the near future.

Director Morrison commented that, with the large number of projects underway in the City of National City, the City is busy trying to schedule groundbreakings and openings over the next few months. They are putting together an evaluation of Kimball Park, where they are putting in new soccer fields. Putting in real turf would basically close down the park for the entire summer season. They are looking at the pros and cons between real and artificial turf. Next Tuesday is the ribbon cutting to reopen the Café La Maze.

Chair Beauchamp announced that Senator Ducheny and Greg Cox recently attended the Sycuan opening. Mayor Morrison gave a great presentation. He recently attended an Arid Lands Conference in La Paz. Over the last few years he has been helping a group of students at the University of Sonora. The students presented him with a plaque of appreciation at the conference. He announced that Engineering Manager Martinez and he are interacting and sharing information with the Tijuana State Commission on Public Services, and if anyone is interested in attending, to please let him know.

Director Morrison pointed out a typo on the monthly report of activities for February 2008. A decimal point is off in the reporting of the storage at Sweetwater Reservoir. Staff will make the correction.

13. CLOSED SESSION

At 5:15 p.m., the Chair called a five-minute break, following which, in compliance with Government Code Section 54956.9 (b), the Governing Board recessed to convene in closed session to confer with Legal Counsel concerning anticipated litigation regarding one item. All persons left the room with the exception of the Governing Board, Legal Counsel, and the General Manager. There were no minutes taken, and the session was not tape-recorded.

At 5:37 p.m., Chair Beauchamp declared the meeting to be in open session. No reportable action was taken by the Governing Board.

14. ADJOURNMENT

With no further business before the Board, Chair Beauchamp adjourned the meeting at 5:37 p.m.