minutes

Regular Meeting

Governing Board of Sweetwater Authority

April 11, 2007

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, April 11, 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, Pocklington, Thomas and Welsh

Directors Absent: Morrison

Others Present: General Manager/Treasurer Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Delegatee Farrow, and Board Secretary Schoonderwoerd. Staff members: Rick Alexander, Jim Smyth, Don Thomson, and Tom Woodrum. Also: Lin Wurbs, Andrew Longaker, along with parents, Lance and Remy Longaker, and sister, Audrey Longaker

• 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 for comment.

• CHAIR’S PRESENTATION

Chair Beauchamp presented the Sweetwater Authority Wanda Avery Scholarship recipient, Andrew Longaker, with a certificate and a check in the amount of $1,000. He pointed out that Andrew is a senior at Hilltop High School and very active in the community. He was a volunteer on the Mayor’s campaign, currently volunteers at the Chula Vista Public Library, and interns for the Star News. Along with Andrew’s passion for drawing, he enjoys reading and is currently the Co-Editor of the school newspaper. His artistic talent has led the Lancer’s school paper to have a new heading for which Andrew created and designed the artwork. Andrew plans to attend the Art Institute of San Diego majoring in Game Art and Design and to one day start his own business. Andrew wrote in his essay that “Special districts all aim toward the goal of assisting people within their communities. Even with all the benefits that special districts provide, they are still unknown to a majority of the population.”

Director Doud announced that Andrew had also been selected as a CSDA Scholarship recipient. He commented on the high marks Andrew’s application received from the selection committee and the quality of his essay. He invited Andrew and his parents to the CSDA Quarterly Meeting and scholarship awards on May 17th, where Andrew will be awarded a scholarship in the amount of $1,000 from CSDA.

Andrew introduced his parents and sister to the Board and stated that, after high school, he would like to join the Art Institute of California, San Diego and major in Game Art Design. He aspires to work for a large corporation and eventually branch out into his own business. Andrew thanked his parents, sister, and the Board for their support of his education.

Chair Beauchamp added that the Board is very proud to be able to show its support to students who show promise. He pointed out the responsibility Andrew now has as a role model.

Director Pocklington stated that the scholarship program was a good opportunity to reach out to younger people. He congratulated Andrew and encouraged his success.

ACTION CALENDAR ITEMS

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

Chair Beauchamp made a motion, seconded by Director Pocklington, that the consideration of per diem for participation in Water Conservation Garden events be added to the agenda as Item 8.D. The motion carried.

2. APPROVAL OF MINUTES

Director Alkire made a motion, seconded by Director Thomas, that the Governing Board approve the minutes of the March 28, 2007 meeting. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve Warrants 109438 through 109602 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of April 2, 2007)

A. Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve the 2007 membership renewal in the National City Chamber of Commerce and the payment of dues in the amount of $500. The motion carried.

B. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board direct staff to prepare the application for the Water Permit Amendment for the proposed Sweetwater Reservoir Loop Trail for submittal to the Department of Health Services; direct the appropriate Authority representatives to execute six copies of the Agreement between Sweetwater Authority and County of San Diego for Reimbursement of Costs to Process Amendment for Loop Trail; and forward the signed agreement to the County for signature. General Manager Bostad noted that staff has been evaluating the issues specifically related to the County meeting the Authority’s requirements for safe drinking water in its proposal, which will need to be reviewed by the Department of Health Services. He reiterated that, whatever is put into place, the Authority will maintain control of the reservoir for security purposes. The motion carried.

C. Director Welsh made a motion, seconded by Director Doud, that the Governing Board authorize the inclusion of least Bell’s vireo and willow flycatcher survey assistance in the amount of $27,031 in the existing USGS agreement. The motion carried.

D. Director Welsh made a motion, seconded by Director Doud, that the Governing Board award a sole-source contract in the amount of $61,626 to AMEC, 9210 Sky Park Court, Suite 200, San Diego, CA 92123, for environmental monitoring relating to the completion of the requirements by the Regional Water Quality Control Board for the Sweetwater Desalination Project and approve funding in the amount of $70,000 from the Repair and Replacement Fund for the project costs including a contingency amount of $8,374. The motion carried.

E. Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve the repair of the washwater pump and funding in the amount of $20,927.82 from the Repair and Replacement Fund to cover the cost of repairs. The motion carried.

F. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board approve the purchase of a new replacement ultrasonic flow meter for use at the unmanned National City Well Chloramination Facility and funding in the amount of $3,270 from the Repair and Replacement Fund for the purchase. The motion carried.

5. OPERATIONS COMMITTEE (Meeting of April 4, 2007)

A. Director Doud made a motion, seconded by Director Pocklington, that the Governing Board adopt a position of support on Senate Bill 59 and send a letter of support to Senator Cogdill. Director Pocklington commented that MWD’s committee considered this. He recommended approval, though he could not obtain a second on the motion due to the high cost. Staff is going to look at this further, and he anticipates eventual approval. The motion carried.

B. Update on the Goodrich property hazardous material cleanup. Director Doud noted that the Regional Water Quality Control Board (RWQCB) was to receive a detailed work plan from Goodrich earlier this year regarding hazardous material cleanup from its site, but Authority staff has been informed that the due date is now indefinite, with no reason provided. The Authority’s concerns were addressed in a letter to the San Diego Unified Port District in response to its Draft Environmental Impact Report for the Chula Vista Bayfront Development, but no response has been received from the Port District to date. Staff will continue to track this issue. In response to concerns addressed by Director Thomas, General Manager Bostad stated that staff maintains regular contact with the RWQCB. However, this agency is inundated with many issues and has a lack of resources. This is problematic in our society where many state agencies are under-funded and become overloaded. Director of Environmental and Governmental Services Alexander informed Director Thomas about the RWQCB website, where updates are available to the public. This was an information item and no action was required by the Governing Board.

C. Director Doud made a motion, seconded by Director Thomas, that the Governing Board adopt the Minimum and Low Water Pressure Complaints Policy as submitted, with minor changes for purposes of clarification. The motion carried.

D. Shared Resources Memorandum of Understanding. General Manager Bostad explained the existing Shared Resources Memorandum of Understanding among Sweetwater Authority and other agencies. The current MOU was executed in 1996, and some changes are required at this time to bring it up to date. This was an information item and no action was required by the Governing Board.

6. NEW BUSINESS

Consideration of rescheduling of Board Meeting of May 9, 2007 due to conflict with Association of California Water Agencies Annual Conference in Sacramento, CA. Director Pocklington suggested that, as Management deems necessary to accommodate business, either the meeting of May 9th could be cancelled or both scheduled May Board meetings could be moved forward by one week. The Board concurred, and staff will evaluate the options.

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

Chair Beauchamp reported that he attended today’s Board meeting at the Garden. The principal issue was a discussion of the forthcoming budget, which is currently $70,000 over. However, the funding provided by Sweetwater Authority’s recent membership will help to balance that. Visitor traffic is high, there are a lot of activities going on, and they have received approval for an alcohol license, which will allow more flexibility in rental of the facility for a wider variety of events. He announced the opening of the Firewise Garden at 10:00 a.m. on Thursday, April 12th.

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

A. Council of Water Utilities, San Diego County Meeting at the Stoneridge Country Club on Tuesday, April 17, 2007, 7:15 a.m. – Program: “Pension and other Post Employment News from CalPERS” presented by Rand Anderson, CalPERS Manager-Constituent Relations Office. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

B. Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve per diem for Directors who wish to represent the Authority at the Festival Cinco de Mayo in Downtown Chula Vista on April 29, 2007. The motion carried.

C. California Special Districts Association – Special Districts Legislative Days, Sheraton Grand Sacramento Hotel, May 14-15, 2007. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

D. Director Pocklington made a motion, seconded by Director Welsh, that the Governing Board approve per diem for Chair Beauchamp’s attendance at the Water Conservation Garden’s California Friendly Garden Festival on March 17th and the opening of the Firewise Garden on April 12th, and that consideration of attendance and per diem payment for future Garden events be brought back to the Board through the Finance and Personnel Committee. The motion carried.

9. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Chair Beauchamp reported on the April 3rd South County Economic Development Council meeting. Sempra Energy presented on the Southbay Power Plant, the Southwest Power Link, and the big picture with what’s going on with power in this area. They want that plant out of there, which means it could not be used for reclaimed water. Sempra is concerned about the entire mix of power sources for the area.

Director Doud reported on the First Friday Meeting of April 6th. Congressman Filner, Supervisor Cox, Mayor Cox, and various hospital CEOs were present to voice concerns regarding hospitalization costs. Director Thomas also attended and added that the meeting was very informative. She said the message was that there is a huge need on the federal and state level for equitable reimbursement rates for Medicare and Medi-Cal.

10. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Mr. Rogers provided an update on the CWA and Sweetwater Authority single-family home toilet voucher program, which ended in March. The Finance and Personnel Committee authorized additional funding to be available for the expected run on the vouchers. The demand was actually two-thirds of what was predicted. Approximately 800 vouchers were distributed and about $14,000 out of the $20,000 that was authorized was spent. It was noted that the deadline to utilize the vouchers is the end of June.

B. Report of General Manager Bostad: General Manager Bostad pointed out the sign-up sheet distributed for the Environmental Tour on April 20th. These tours have been very successful with participation including individuals from the Chula Vista Nature Center, Mayor Cox’s office, LAFCO, and conservation specialists.

Legal Counsel Cowett provided an update on the Dynegy energy case, which has ended. He recapped the events of the energy crisis of 2001 when energy prices for commercial accounts in San Diego County went through the roof. The estimated damages and extra costs to the Authority came to approximately $751,000 over a six-month period. Best Best & Krieger filed suit on behalf of nine water districts, including Sweetwater Authority, in a case that was joined by a couple of class action suits, the City and County of San Francisco, Oakland, San Jose, and various other communities in northern California. California suffered about $40 billion in damages as a result of the manipulation of the energy companies. The court case did not go in our favor; however, local water agencies including Sweetwater came out extraordinarily well because they entered into settlements with three energy companies. Mr. Cowett distributed and reviewed a summary outlining the allocation of settlement funds for all of the districts represented. The Authority’s recovery was $563,298 of the estimated damages of $751,605, plus the majority of attorney’s fees. Mr. Cowett said that this recovery was about as good as possible. General Manager Bostad added that this strategy to recover from some of the very high costs of power during the crisis period was worthwhile, and he thanked Mr. Cowett for the successful effort.

11. DIRECTORS’ COMMENTS

Director Welsh congratulated Andrew Longaker and his family and said that it is a highpoint of her year when students are recognized with these scholarships.

Director Doud read a quote from John F. Kennedy: “Anyone who can solve the problem of water will be worthy of two Nobel prizes - one for peace and one for science.”

Director Pocklington provided more information on the meetings of the last two days at MWD. There is great concern about the judge who said their power and pumping plants should be cut down, and there is a lot of work going on with the state and the Governor’s office to see what can be done about that. They are also evaluating volunteer restrictions, replenishment water, and seasonal storage. They have been trying to get the permit for that water for ten years, and there are a lot of agencies trying to work that out.

Director Thomas congratulated Andrew Longaker and especially his family for their support. She encouraged him to get involved, express himself, and do his best, but to always remember his loved ones, his friends, and his country.

Director Alkire also congratulated Andrew and complimented his mother for encouraging him to apply for these scholarships.

Chair Beauchamp thanked the Longaker family for producing a fine daughter and son. He stated that this was what America was all about - the nuclear family unit - and that without that, society crumbles.

12. CLOSED SESSION

At 7:05 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, Jim Smyth, Don Thomson, and Tom Woodrum. There were no minutes taken, and the session was not tape-recorded.

At 7:19 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 7:19 p.m., to the hour of 2:30 p.m. on April 25, 2007.