minutes

Regular Meeting

Governing Board of Sweetwater Authority

March 28, 2007

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, March 28, 2007, 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 and Welsh

Directors Absent: None

Others Present: General Manager/Treasurer Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Delegatee Farrow, and Board Secretary Schoonderwoerd. Staff members: Rick Alexander, Cynthia Berndt, Janet Gonzalez, Bill Olson, George Silva, Jim Smyth, Don Thomson, Tom Woodrum, and Dina Yorba. Others: Lin Wurbs

• PLEDGE OF ALLEGIANCE TO THE FLAG
Director Morrison 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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA

Director Pocklington made a motion, seconded by Director Doud, that the First Friday meeting of April 6, 2007 be added to the agenda as item 7.F. The motion carried.

2. APPROVAL OF MINUTES

Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve the minutes of the March 14, 2007 meeting as amended by Director Thomas under Item 9.E., sentence number three. This sentence should read, “Director Thomas concurred that a Sweetwater Authority Director should be represented at this significant, large, land use project and noted that, since she will attend as a member of the Citizen’s Advisory Committee representing the General Plan Update Steering Committee, she wants it to be a part of the public record that she will not be receiving a per diem.” The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve Warrants 109248 through 109437 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of March 19, 2007)

A. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board award a consultant contract in the amount of $56,675 to PBS&J, 9275 Sky Park Court, Suite 200, San Diego, CA 92123, to conduct the Water Rate and Reserve Study; and authorize the allocation of $37,000 from the Repair and Replacement Reserve Fund for the project deficit. In response to Director Doud’s inquiry regarding the difference between the amount budgeted for the project and the submitted bids, General Manager Bostad stated that this is a unique study, the difference relates to the specific amount and methods applied to the work proposed to be accomplished by the individual consultants, and that the budget was based upon an estimate for the proposed project at the time. Chair Beauchamp requested that a procedure be implemented during the request for proposal process whereby it could be determined and insured that respondents have no conflict of interest with any of the Board members. General Manager Bostad stated that he would review the issue with Legal Counsel to incorporate appropriate language to meet this concern. Director Pocklington added that, in this case, the recommended consultant is providing more service to the needs of the project. General Manager Bostad stated that the Proposition 218 requirement was also at issue, complicating the process more than in the past. The motion carried.

B. Director Welsh made a motion, seconded by Director Doud, that the Governing Board deny Ms. Diehl’s request for a water bill adjustment and direct staff to bring the Adjustment to Customer Water Bills Policy to a future Committee meeting for review. The Board held discussion regarding the circumstances present regarding this adjustment request. Director Welsh pointed out that the policy is designed to assist customers in the event that a problem is found to explain the water usage, such as a leak. General Manager Bostad stated that the goal is to simplify the policy and make it easier for the public to understand. The motion carried.

C. Director Thomas made a motion, seconded by Director Alkire, that the Governing Board approve the addition of a Deputy Operations Manager position; the addition of an Interim Administrative Services Director position; the reclassification of the Senior Human Resources Clerk to Human Resources Analyst; the deletion of the current Customer Service Representative I (Office) classification; the reclassification of the Customer Service Representative II and III (Office) positions to Customer Service Representative I and II (Office) positions; the reclassification of the Engineering Secretary position; the reduction in hours of the Office Assistant position; the renewal of three intern positions; and the addition of two intern positions, for a net annual cost of $170,433 - $195,445. General Manager Bostad reviewed each recommendation with the Board, clarifying the impact of each change and noting the organizational changes.
The motion carried.

5. NEW BUSINESS
There was none.

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 reported on items of interest from the March 22nd CWA Board meeting. The Board voted to install artificial turf at the CWA Administrative Office to demonstrate and promote outdoor water conservation. He added that the Board voted to adopt a position of “support and seek amendments” on SB 59, the bill introduced by Senator Dave Cogdill to address the state’s water supply. General Manager Bostad added that SB 59 will be brought to Sweetwater Authority’s Board for review through the Operations Committee. The Board considered and provided input on CWA’s priority projects and policy principles for a potential 2008 water bond. Director Pocklington stated that the Board also discussed capacity fees, and it is unknown at this point whether fees will increase. Director Beauchamp commented that he has an issue with the use of artificial turf, and that it can send the wrong message. He believes it serves a purpose for recreational use, but it does not fit into our environment, and the turf’s purpose needs to remain a focus. Turf does not provide the same water filtration and does not help cycle carbon like a ground cover would. Director Morrison explained that the turf being installed at CWA Headquarters is in a small area and is purely for demonstration purposes. The turf will not have the backing attached so it will allow for water filtration.

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

A. Director Pocklington made a motion, seconded by Director Alkire, that the Governing Board approve per diem for Directors who wish to accept the Poseidon Resources Corporation invitation to meet the Carlsbad Desalination Project engineering and construction team on Friday, April 13, 2007 from 10:00 a.m. to 12:30 p.m. at the Encina Power Station. Directors Doud and Thomas expressed interest in attending. The motion carried.

B. Water Agencies Association of San Diego County Quarterly Meeting, Thursday, April 19, 2007, at the Lomas Santa Fe Country Club from 6:00 to 9:00 p.m. – Program: “New Developments in Conservation Programs and Rates” presented by Mary Ann Dickinson, Executive Director, California Urban Water Conservation Council. Directors Doud, Pocklington and Beauchamp expressed interest in attending this pre-approved event. No action was required by the Governing Board.

C. Festival Cinco de Mayo, Downtown Chula Vista, Third Avenue from “E” to “G” Street on Sunday, April 29, 2007 from 10:00 a.m. to 5:00 p.m. Directors wishing to represent the Authority at this event will contact the Secretary. No action was required by the Governing Board.

D. California Special Districts Association Strategic Planning for Special Districts on Wednesday, May 9, 2007 at the Sheraton Four Points Hotel, Los Angeles, CA. None of the directors expressed interest in attending this pre-approved event. No action was required by the Governing Board.

E. Call for hotel reservations for 2007 California Special Districts Association Annual Conference on October 1-4, 2007, at the Portola Plaza Hotel in Monterey, CA. Directors wishing to secure hotel accommodations for this pre-approved event will contact the Secretary. No action was required by the Governing Board.

F. Director Doud made a motion, seconded by Director Pocklington, that the Governing Board approve per diem for Directors who wish to attend the First Friday meeting on April 6, 2007 at the San Diego Country Club. Director Morrison expressed opposition explaining that the legislators attending will be addressing healthcare issues. Chair Beauchamp stated that he believed attendance was of value as it will provide additional exposure to the various legislators who would be attending the meeting. The motion carried with Director Morrison opposing.

8. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Welsh reported on the Local Government Commission Annual Ahwahnee Conference on March 15-18. She left a conference program summary with the Secretary for review by interested Directors. She commented on several of the Ahwahnee Water Principles addressed at the conference and made note of the principle to minimize impervious surface cover, which related to the earlier discussion of various types of turf. She also referred to the Summary for Reinvestment in Aging Infrastructure and a funding priority resulting from Proposition 84 for projects that address chemical nitrate contaminants and other health hazards. Director Welsh inquired whether this was something the Authority could benefit from, and General Manager Bostad said staff would have to look into the program. Director Morrison reported on several sessions of interest, which included a session on building code issues; a presentation by the Executive Director of the California Redevelopment Association on how redevelopment money could be used for water conservation and for the reduction and cleanup of runoff utilizing pervious materials for sidewalks and other uses; a session that addressed financing watersheds using land trusts and assessment districts; a session led by representatives from the Ventura area on how they are dealing with building in an area with limited water resources and a dynamic watershed, and how those issues were blended together; and a session dealing entirely with cleanup and implementation legislation, which included an interesting interpretation by Peter Brand, the senior project manager for the California Coastal Conservancy, on how the Proposition 84 money will be spent on environmental programs and staffing. Director Morrison said the conference offered a different viewpoint than we are accustomed to hearing. Director Doud also attended and submitted a written report to be kept on file with the Secretary, as well as a Local Government Commission membership application to be brought to the Board for consideration through the Finance and Personnel Committee.

Director Morrison reported on the Council of Water Utilities Meeting of March 20th. He said that it was a good time for CWA to make a presentation on where it was heading and, in particular, relationships with MWD. Director Doud said the main message was that CWA would have to “tighten the belt” from the top on down. Director Beauchamp said he would like to have had the future of desal addressed.

Director Doud reported on attendance at the ACWA Legislative Symposium on March 21st in Sacramento and submitted a written report and a CD on the Symposium to be kept on file with the Secretary. He said the main topics addressed Proposition 84 dollars and competing for them; a panel on water issues for 2007-08 with Senators Steinberg, Margett, and Machado, and Assembly Member Maze; Proposition 218 and subsequent problems and proposals to address the issues and unanswered questions through AB 1260; and presentations by Assembly Members Mary Salas and Kevin Jeffries, former water district board members, on their perspectives and insights into how they can affect legislation on critical water issues. Director Pocklington reported that it was an interesting and educational symposium and noted that there are currently 35 freshmen members in the legislature, which is the largest group since going to term limits. The two major topics they are dealing with right now are the budget, which may be as much as $5-7 billion in the red, and the prison problem. Director Beauchamp commented that, with the current leadership, the issues with the Delta will not be resolved.

Note: Attorney Don Detisch, Law Offices of Don Detisch, arrived at 4:27 p.m.
Note: Director Pocklington left the room at 4:28 p.m. and returned at 4:29 p.m.

Director Morrison reported on the National City Chamber of Commerce meeting on March 21st. Representatives from Senator Ducheny’s office discussed all of the pertinent legislation being brought forward in the current legislature.

Director Thomas attended the “H20 – Where Do You Go?” water science program on March 23rd at Hazel Goes Cook Elementary School. She said the interactive one-hour program, put on by Razzle Bam Boom, was educational, lively, and exceptionally well done. The CWA-sponsored program travels throughout county schools. Over 300 third and fourth graders attended this program. The basic concepts of water, aqueducts, where water comes from, and water conservation were covered and got both students and teachers involved. Director Thomas complimented and thanked Melody Diaz, Sweetwater Authority’s Sr. Education Specialist, for making the arrangements for Directors to attend and introducing the program. Director Doud attended as well, submitted a written report, and agreed that the program was outstanding, educational, and entertaining. He noted that his sons attended Cook Elementary as well. Director Morrison requested that the Board be provided with a schedule of the productions in the future and agrees that this is an educational program the Authority should be involved with. General Manager Bostad noted that the Cook Elementary production was the only one being held in the Authority’s district this school year.

Director Thomas attended the Bonita Business and Professional Association meeting on March 27th and submitted a written report to be kept on file with the Secretary.

Chair Beauchamp attended the Friend’s Plant Sale on March 17th at the Conservation Garden and stated that there was a large turnout of nurseries providing materials. He added that the damage from the frost had caused this lack of materials, and the plants sold very well.

Director Pocklington attended the Bayfront Master Plan Citizens Advisory Committee meeting on March 15th. He noted that it was stated that landscaping and water was an important part of the project. They talked about grey water and recycled water, as well as salt water. One of the challenges that the project faces is the need for a land swap with the state, and the chances of that are 50/50. Also a challenge is that this is a $1.3 billion project, and project labor is a potential problem that could put a halt to the project. Director Pocklington expressed hopes that the project will move forward because it would mean growth for the Authority. Director Morrison agreed that the project should move forward and added that the labor issues could get involved with the land swap at the state level and pose more complications.

9. BUDGET REPORT –DIRECTOR OF FINANCE FARROW

Debra Farrow reported that as of February 28, 2007, Water Revenue is $371,000, or 1.5 percent, reflecting a 4.6 percent increase in consumption than was anticipated at this time in the year. Operating Expenses are $702,000, or 3.8 percent, over budget, as compared to $956,000 last month. Expenditures during the month were $200,000 less than expected. This is a good sign and a good direction.

10. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Mr. Rogers informed the Board that, since its incorporation in 1960, approximately 25,000 students have graduated from Hilltop High School. In 2001, the Hall of Fame program was instituted, and to date only 21 graduates have been inducted. Last Friday, eight graduates were inducted, among them Sweetwater Authority General Manager Dennis Bostad. Unfortunately, Mr. Bostad was visiting family out of town, and his wife, Lynda, accepted the recognition in his absence. The Board congratulated Mr. Bostad.

Mr. Rogers then showed photos and explained a new method and materials used to replace some steel pipe on 16th Street in National City. Instead of the usual open-cut process, 800 feet of tunnel was bored, as deep as 17 feet in some areas. In the process, 40-foot lengths of 12” PVC were joined by heating them to about 400 degrees and pressing them together. This method’s advantage is that it is very unobtrusive and can be accomplished with minimal equipment and traffic control needs. The project took approximately two-and-a-half days at $150,000 versus ten days at $400,000 using the open-cut process. This is the first time the Authority has used this new technology, and it worked out very well.

B. Report of General Manager Bostad: Mr. Bostad noted a March 26th ACWA Communications Advisory reporting that the proposed court ruling by Alameda County Superior Court Judge Frank Roche states that the California Department of Water Resources lacks the proper permits to operate a key station that pumps water from the Sacramento-San Joaquin River Delta into the California Aqueduct and is not in compliance with the California Endangered Species Act. ACWA indicates that Southern California’s tap to Northern California water makes up two-thirds of the region’s supply right now, and this ruling has both direct and indirect impacts on the entire water community. Jeff Kightlinger, MWD General Manager, stated that the court’s ruling, which could mean an order to stop pumping in sixty days, could be overturned by appeal. This indicates how important it is for agencies to look at how they can locally improve and increase the reliability of water supplies. Director Pocklington stated that MWD held a three-hour emergency meeting on Sunday. The pumps will not be shut down, but the sports fishing associations are an obstacle because of the effect on fishing. Their resolution would be to possibly move it further up north in the Sacramento River, but the cost would be $3.5 billion. Only 300 fish were affected versus the 23 million Californians who will be impacted. Attorney Cowett advised that this is essentially about the absence of the appropriate state permit, so they need to obtain that, and the Governor and head of Fish and Game are on top of this. He believes it will be resolved so there wouldn’t be a stoppage at the pumps.

11. DIRECTORS’ COMMENTS

Director Doud read a quote from Lord Byron: “Till taught by pain, men really know not what good water’s worth; if you had been in Turkey or in Spain, or with a famished boat’s crew had your berth, or in the desert heard the camel’s bell, you’d wish yourself where truth is – in a well.”

Director Pocklington mentioned a fax he received from MWD yesterday announcing that a program on water will be airing tonight on the History Channel’s Modern Marvels program at 9:00 p.m.

Director Alkire informed the Board that former General Manager and Director Dick Reynolds is scheduled for knee replacement surgery on Friday and will be home on Monday.

12. CLOSED SESSION

At 4:55 p.m., in compliance with Government Code Section 54956.9(a), the Board recessed to convene in closed session to confer with Legal Counsel regarding pending litigation on California Department of Transportation v. Sweetwater Authority, Case No. GIC 838118-1 (C/W: GIC 838119-1 and GIC 838120-1). All persons left the room with the exception of the Governing Board, Management Team, Legal Counsel, Board Secretary, and staff: Rick Alexander, Debra Farrow, Janet Gonzalez, George Silva, Jim Smyth, and Don Thomson. There were no minutes taken, and the session was not tape-recorded.

At 5:18 p.m., Chair Beauchamp declared the meeting to be in open session. There was no reportable action.

13. ADJOURNMENT

With no further business before the Board, Chair Beauchamp adjourned the meeting at 5:18 p.m., to the hour of 6:00 p.m. on April 11, 2007.