minutes

Regular Meeting

Governing Board of Sweetwater Authority

April 12, 2006

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, April 12, 2006, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Pocklington called the meeting to order at 6:02 p.m.

• ROLL CALL

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

Directors Absent: Morrison and Welsh.

Others Present: General Manager Bostad, Operations Manager Rogers, Legal Counsel Akins, and Board Secretary Schoonderwoerd. Staff members, Debra Farrow, Pete Famolaro, Bill Olson, George Silva, Jim Smyth, Don Thomson and Tom Woodrum.

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

NOTE: Director Morrison entered the meeting at 6:03 p.m.

• OPPORTUNITY FOR PUBLIC COMMENT (Government Code Section (54954.3)
There were no members of the public present for comment.

• CHAIR’S PRESENTATION
A short series of news videos highlighting the ASCE dedication of Sweetwater Dam as a National Historic Civil Engineering Landmark on April 7th was shown to the Board. Immediately following, the Directors gave their reports on attendance at the event. Director Doud said it was an outstanding event, and he enjoyed seeing George Waters and spending time talking with him. Director Beauchamp remarked that Communications staff had done their homework in coordinating the details, he thought it was a powerful event, and he learned quite a bit. Director Salas said she thought the Union Tribune coverage was excellent, she enjoyed the event, and she thought it would bring kudos all the way around for Sweetwater. Director Pocklington said it was a pleasure being a part of Sweetwater Authority, and he remarked that Director of Engineering Smyth kicked off this idea approximately a year ago, and it came together with great results. Director Alkire remarked that he heard many compliments from the public, and he added his compliments to staff. Director Morrison said he was unable to attend the event as he had another meeting representing another board, but he saw the article in the newspaper and thought staff did a fantastic job. Operations Manager Rogers added that Dennis Martensen, ASCE President, remarked that having been to a number of these presentations, this was by far the best one and he believed it is a reflection of the Authority’s staff who did a wonderful job.

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 Beauchamp, that the Governing Board approve the minutes of the March 22, 2006 meeting. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Beauchamp, that the Governing Board approve Warrants 104569 through 104846 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of April 3, 2006)

A. Director Alkire made a motion, seconded by Director Doud, that the Governing Board award a sole-source contract in the amount of $60,000 to Enterprise Automation, 3002 Dow Avenue, Unit 508, Tustin, CA 92780, for technical services for the replacement of programmable logic controllers for the URDS I facilities. The motion carried.

B. Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve the proposed modification to the Rates and Rules and the Supplement to the Rates and Rules by resolution. The motion carried.

C. Director Alkire made a motion, seconded by Director Beauchamp, that the Governing Board approve the addition of one Watershed Caretaker Trainee position in Water Quality; the reclassification of one Water Quality Technician to part-time temporary; the reclassification of the Senior SCADA Coordinator to Instrument and Controls Technician; the reclassification of two Plant Maintenance Technicians to Instrument and Controls Technicians; and the renewal of four intern positions, at a net annual cost of $26,860. The motion carried.

D. Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve the request to create the position of Business Systems Programmer for the administration and programming of the customer service and billing database system, and assistance in the implementation of the Maximo Asset Management System, at an annual salary of $72,072. The motion carried.

E. Director Alkire made a motion, seconded by Director Salas, that the Governing Board approve the request to create a contractual Purchasing Supervisor position for three years, with an optional two-year extension, and the reclassification of one of the Buyer III positions, for a net increase in annual wages of $18,305. The motion carried.

5. OPERATIONS COMMITTEE (Meeting of April 5, 2006)

A. Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve the revised Sweetwater Authority Standard Specifications subject to staff’s determination regarding the asbestos-cement pipe section. Staff will continue to evaluate whether the Authority should adopt the Water Agency Standards in the future. The motion carried.

B. Director Doud made a motion, seconded by Director Beauchamp, that the Governing Board approve the modified scope of work for the 8th Street main leak in National City, and funding of an additional $14,000 to complete the work. The motion carried.

C. Discussion of Proposition 50 Grant Funding For The Richard A. Reynolds Desalination Facility Phase 2 Expansion. General Manager Bostad provided the Board with background information on this project. This was an information item and no action was required by the Governing Board.

D. Discussion of San Diego County Water Authority Draft Drought Management Plan Report. The County Water Authority will be deliberating on this Plan in the next month. Staff will provide additional information on this Plan at the next Operations Committee meeting. This was an information item and no action was required by the Governing Board.

6. ADOPTION OF RESOLUTION

Upon a motion made by Director Alkire, seconded by Director Doud, the following resolution:

RESOLUTION 06-03

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
AMENDING ITS RATES AND RULES

was passed and adopted by the following vote to wit:

Ayes: Directors Alkire, Beauchamp, Doud, Morrison, Pocklington, and Salas
Noes: None
Absent: Welsh
Abstain: None

7. NEW BUSINESS

The May 10, 2006 Board meeting will be cancelled due to the ACWA Spring Conference.

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

A. Council of Water Utilities, San Diego County Meeting at StoneRidge Country Club, Tuesday, April 18, 2006, 7:15 a.m. – Program: Ms. Joanne Price, ActivManuals – “The Private Life of Information and Its Consequences: Considerations of Information Capture, Access and Management.” Directors wishing to attend this pre-approved event will contact the Secretary. No action is required by the Governing Board.

B. Water Education Foundation Central Valley Water Tour, April 26-28, 2006. No Directors present will attend this pre-approved event. No action is required by the Governing Board.

C. Festival Cinco De Mayo, Downtown Chula Vista, Third Avenue from “E” to “G” Street, Sunday, April 30, 2006, 10:00 a.m. to 5:00 p.m. Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve per diem for Directors who represent the Authority at this event. The motion carried.

D. CSDA Special District Governance Academy – Module 3: Board’s Role in Finance & Fiscal Accountability – May 12, 2006, at the Hilton Sacramento, Sacramento, California. No Directors present will attend this pre-approved event. No action is required by the Governing Board.

E. American Water Works Association Annual Conference and Exposition – June 11-15, 2006, San Antonio, Texas. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve per diem for Directors wishing to attend this event. The motion carried with Director Salas opposing.

9. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Doud reported on attending the Water Education Foundation Executive Briefing on March 23-24. He said this briefing was well attended from all over California, Nevada, Washington, D.C., Arizona, Colorado, and Utah. The main topic of discussion was the Delta and the Governor’s infrastructure initiative. Senator Machado does not believe the initiative will make the ballot either in June or November. Assemblymember Lois Wolk, Chair of the Assembly Water, Parks & Wildlife Committee, spoke about the Delta and its problems. Lester Snow referred to the New Orleans Katrina levy failure as a one-in-300-year event and said that the City of Sacramento is the most serious candidate for this 300-year flooding.

Director Salas reported on attending the South County Economic Development Council on April 4th. She said the Executive Director of the Tijuana EDC gave an overview of what has been happening over the last two years regarding the maquiladora industry. He noted that in the year 2000, there were over 800 maquiladoras manufacturing in Tijuana, and as of the end of 2005, that number had gone down to 600 companies, which equated to 45,000 jobs lost. He also stated that the government’s official figure for unemployment is 1.8 percent, but since most people are underemployed, the rate is more realistically 45 percent. The official population of Tijuana is 2.2 million people, while the actual number is probably 30 percent higher than that. He said that one reason why the maquiladora industry is in depression is that the current wage is between $2.30 and $2.50 an hour and, China their main competition, is paying wages of about $.50 per hour. The maquiladoras are moving away from the electronic sector, and the new emerging economy is going to be based on biotech, aerospace, and medical devices. Director Salas said the manufacturers will need clean pure water for their operations, and the water industry will monitor that need. The Tijuana EDC Executive Director said that Otay Mesa would be a good place for the sterilization part in the medical device industry.

Directors Pocklington and Beauchamp attended the Padre Dam MWD Open House on April 5th. Director Pocklington said that he found it interesting to learn about the financing and how the project came about, and he shared what he learned in those areas at the event. He also said that the building is very nice with plenty of room for growth. Director Beauchamp said the networking was excellent, and he thought it was a good idea to have the self-guided tour rather than a talk on the project.

10. QUARTERLY REPORT OF DIRECTORS’ EXPENSES – 3rd QUARTER 2005-2006

This spreadsheet report was provided to the Board for information purposes.

11. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Operations Manager Rogers reported that we did not receive the rainfall last month that was expected, but as of April 12th we crept up above the lowest rainfall on record in the last 100 years. We are about four and one-half inches below the average, but right now Sweetwater is 76 percent full and Loveland is 51 percent full.

B. Report of General Manager Bostad: General Manager Bostad reported that he just returned from Sacramento and had a very successful meeting with Joe Grindstaff, the Executive Director of CALFED. This meeting came out of the Water Education Foundation Briefing a few weeks ago. The purpose of the visit was to talk about the Reservoir Intertie Project. Mr. Grindstaff was very interested in the project, and he indicated that he would contact Senator Feinstein’s office to discuss doing an appraisal of it with the Senator and her senior staff. They were also able to connect with and brief senior staff at the California Department of Fish and Game and hope to get them to weigh in with support to study the project as a good alternative to creating seasonal storage. We are looking at up to 100,000 acre-feet of seasonal storage capacity between El Capitan and Loveland.

12. DIRECTORS’ COMMENTS

Director Doud read a quote from Moliere, “It infuriates me to be wrong when I know I am right.”

Director Beauchamp said that he is leaving for Colima and would not be able to attend the Council of Water Utilities meeting.

Director Alkire said one of the guests at the ASCE event was a Bonita resident named Gale Burkey. He was a World War II naval aviator who flew PBY Catalinas in the Battle of Midway.

13. CLOSED SESSION

At 7:01 p.m., in compliance with Government Code Section 54954.5, the Board recessed to convene in Closed Session to discuss the following:

CONFERENCE WITH REAL PROPERTY NEGOTIATOR concerning potential acquisition of real property pursuant to Government Code Section 54956.8

• Property: Water rights and franchise rights outside district boundaries
• Negotiating Parties: Dennis Bostad, General Manager, Sweetwater Authority
C. Michael Cowett, Attorney, Best Best & Krieger LLP
• Negotiating for Property Owner: None yet identified

Everyone left the Board Room, with the exception of the Board members, Management Team, Legal Counsel, Board Secretary, and staff members Smyth and Farrow. There were no minutes taken, and the session was not tape-recorded.

At 7:09 p.m., Chair Pocklington declared the meeting to be in open session, and there was no reportable action.

14. ADJOURNMENT

With no further business before the Board, Chair Pocklington adjourned the meeting at 7:09 p.m., to the hour of 3:30 p.m. on April 26, 2006.

W.D. Pocklington, Chair
Attest:

Rita Schoonderwoerd, Board Secretary