minutes

Regular Meeting

Governing Board of Sweetwater Authority

April 23, 2003

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, April 23, 2003, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Doud called the meeting to order at 3:34 p.m.

· ROLL CALL

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

Directors Absent: None.

Others Present: General Manager Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Avery, and Board Secretary Farpón-Friedman. Staff members, Hank Gaus, Mary Ann Mann, Bill Olson, Paula Roberts, George Silva, Jim Smyth, Tom Woodrum, and the City of National City Representative to the San Diego County Water Authority Robert Valderrama.

· PLEDGE OF ALLEGIANCE TO THE FLAG
Director Pocklington conducted the pledge of allegiance to the flag and asked to take a minute of silence for the men and women who are fighting in Iraq.

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

CHAIR ’S PRESENTATION

Chair Doud mentioned the County Water Authority Annual Report, where it is said that the Reynolds Demineralization facility is located in National City. He suggested that staff get in touch with the CWA to make them aware that the demineralization facility is located in Chula Vista. He then referred to an electronic mail message received by all directors asking us to oppose the Clean Air Rollback Act. He recommended that this issue be turned over to staff to study it and let them take the appropriate action. Director Welsh made a motion, seconded by Director Wright, that staff review it and take appropriate action. The motion carried.

ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA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

1. APPROVAL OF MINUTES

Director Pocklington made a motion, seconded by Director Wolniewicz, that the Board approve the minutes of April 9, 2003. The motion carried.

2. APPROVAL OF DEMANDS AND WARRANTS

Director Pocklington made a motion, seconded by Director Welsh, that the Board approve Warrants 88108 through 88321 including all voided checks. The motion carried.

ACTION CALENDAR ITEMS

3. NEW BUSINESS

A. Resolution 03-07 Authorizing Access to Summary Criminal History Information for Employment Purposes.

Upon a motion made by Director Welsh, seconded by Director Pocklington, the following Resolution:

RESOLUTION 03-07

AUTHORIZING ACCESS TO SUMMARY CRIMINAL HISTORY INFORMATION
FOR EMPLOYMENT PURPOSES

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

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

B. ACWA Spring Conference General Session – Designation of Voting Delegate. Director Pocklington made a motion, seconded by Director Wright, that the Board appoint Director Wolniewicz as the Voting Delegate and Director Welsh as the Alternate Voting Delegate at the ACWA Spring Conference. The motion carried.

C. Scheduling of Personnel Workshop. General Manager Bostad requested that a workshop be scheduled to discuss the Personnel Requests for Fiscal Year 2003-04. A Personnel Workshop was scheduled for May 13, 2003, at 9:30 a.m.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of April 22, 2003)

ACTION ITEMS

A. Request for additional water bill adjustment from Mr. Abukar Yusuf. Director Wolniewicz made a motion, seconded by Director Wright, that the Governing Board deny Mr. Yusuf’s request for an additional adjustment, but that he be offered the option of making payment arrangements over a maximum period of six months. The motion carried.

B. Request for additional water bill adjustment from Mr. Kevin Marshall. Director Wolniewicz made a motion, seconded by Director Wright, that the Governing Board deny Mr. Marshall’s request for an additional adjustment. The motion carried.

C. Review of leak adjustment report for the period January 1 through March 31, 2003. This was an information item and no action was required by the Governing Board.

D. Vulnerability Assessment – Award of Contract. Director Wolniewicz made a motion, seconded by Director Wright, that the Governing Board award a contract to provide planning, design, integration, and implementation of technology to accomplish specific recommendations of the Vulnerability Assessment to C.A. Gamble and Associates in an amount not to exceed $8,000. The motion carried.

E. Further consideration of personnel requests for 2003-2004 budget. This was an information item and no action was required by the Governing Board.

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

Director Pocklington reviewed the schedule of committee meetings for the next CWA Board meeting. He provided information on some of the items of importance to Sweetwater Authority that would be discussed at the Board meeting under the Water Policy Committee and the Engineering Committee. The refunding of $14 million to member agencies would be discussed under the consent calendar of the Fiscal Policy Committee. He will vote to give the money back to the member agencies and will continue to work towards trying to reduce the rate increase in January. If the refunding is approved, Sweetwater Authority should be getting around $180,000 back.

Mr. Robert Valderrama then reviewed some of the issues under the Public Affairs, Planning and Environmental, and Administrative and Legal Committees to be discussed at the Board meeting. He noted that a list of the first quarter attendance at meetings by the Board members had been provided. Only 12 of the 37 directors had attended the six authorized meetings, and Director Pocklington and himself were two of the six.

Director Pocklington then referred to AB 1385, which would change the voting procedure at CWA. He thinks they need to do more research on the issue before voting on it.

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

A. Water Education Foundation – The Bay Delta Tour, June 4-6, 2003. None of the Directors will attend this pre-approved event. No action was required by the Governing Board.

B. American Water Works Association – Water Board and Public Officials’ Caucus Breakfast – June 18, 2003 – Anaheim Hilton Towers. Director Welsh said she would attend this event. Director Pocklington made a motion, seconded by Director Wright, that the Governing Board approve per diem for directors who wish to attend this event. The motion carried.

C. Special District Institute Seminar – Facing the Challenges of Fiscal Leadership in Changing Times – June 26-27, 2003 – Hilton Palm Springs Resort. Director Inzunza will attend this seminar. Director Doud made a motion, seconded by Director Wright, that the Governing Board approve per diem for directors who wish to attend this event. The motion carried.

D. Dinner co-hosted by Sutter Securities Incorporated and Orrick, Herrington & Sutcliffe LLP in conjunction with ACWA Spring Conference on Wednesday, May 7, 2003. All directors attending the ACWA conference will attend this dinner. No action was required by the Governing Board.

E. Assembly hearings on the proposed cuts in the budget on Friday, May 9, 2003 in the Board of Supervisors’ Chambers in San Diego. Director Pocklington made a motion, seconded by Director Wolniewicz, that the Governing Board approve per diem for Directors who wish to attend the hearings. The motion carried.

7. REPORT OF TREASURER – WANDA AVERY

Ms. Avery reported that interest rates are at 1.82 percent.

8. BUDGET REPORT

Director of Finance Gaus reported that water sales are $561,000 over what we had projected for the 9th month into the fiscal year. Other Income is $817,000 less than we had estimated, in part due to not having yet received some grants, and also because we have started giving back the energy fund money to the customers. The Interest Income is $175,000 higher than projected, and the Operating Expenses are $229,000 below the estimated amount. Mr. Gaus also reviewed the status of the Departmental Budgets. Collectively, we had projected to spend about 80 percent and we have only spent 57 percent at this time.

9. MANAGEMENT REPORT

A. Report of Rainfall and Reservoir Levels – Operations Manager Rogers:
Operations Manager Rogers reported that we are taking about 42 million gallons per day of raw water and that this will continue through April 28, 2003. We expect to take a total of approximately 10,379 acre-feet. The rainfall received at Loveland Reservoir is about 98 percent of the average. He also reported that, in conjunction with USGS, we are doing an exploration of the San Diego Formation and will put in a test well in El Toyon Park. Staff is discussing the USGS test well with the City of National City and will present the project to the City Council on May 6th. Engineering staff will attend the Council meeting to answer any questions that the Council might have. The new well on the Abriego property (#4) is being tested. Preliminary indications show that it will produce 1,000 gallons per minute, while the well that it replaces produces 400 gallons per minute.

B. Report of General Manager Bostad: Mr. Bostad reported having given a presentation on water reliability to the Bonita/Chula Vista Republican Women’s Club today. He displayed a marble plaque received from the American Water Works Association Research Foundation in recognition of Sweetwater Authority’s fifteen-year participation. He said that the foundation has been doing significant research nationally and internationally and is a tremendous resource for the water community in maintaining quality of water and improving approaches to managing water. Finally, Manager Bostad informed the Board that the Chula Vista Interagency meeting is scheduled for Monday, April 28th. There will be presentations on water supply reliability by CWA, Sweetwater Authority and Otay Water District.

10. REPORT OF CALFED/BAY-DELTA OVERSIGHT COMMITTEE AND NWRA REPRESENTATIVE - DIRECTOR WRIGHT

Director Wright did not have anything to report on Calfed. He talked about a bill introduced by representative Greg Walden amending the Endangered Species Act of 1973 to require the Secretary of the Interior to give greater weight to scientific or commercial data that is empirical or has been field tested for other purposes. Mike Thompson and Senator Barbara Boxer have a bill that designates certain public lands in Humboldt, Del Norte, Mendocino Lake, and Napa as wilderness and certain sections of the river in Mendocino County as a wild or scenic river. He read an article about Federal water managers being able to release extra water into Northern California’s Trinity River to supplement low flows from Oregon’s Klamath basin and avoid the conditions that killed more than 33,000 fish in the Lower Klamath River last summer. The ruling came after federal biologists told a US District Judge in Fresno that continued drought in the basin and an unexpected large run of salmon could cram masses of fish into a shrunken river leading to another massive die-off this year.

11. DIRECTORS’ COMMENTS

Director Wright referred to an article in today’s paper regarding the recent events at MWD where it is mentioned that MWD is concerned about the cost of taking care of the Salton Sea problems. He also referred to his trip report on the CLE Conference that he attended in San Francisco on April 10th and 11th. He provided staff with a binder containing information on several issues that we are facing. He noted that he had attached to his trip report some subject matter on presentations that directors might not be able to get from other sources. One of the issues that we need to be knowledgeable about is WTB’s, which are water transport bags that are not toxic. He said that there is a company in Alaska that wants to bring these WTB’s to our area. He also referred to an article in today’s paper that said that SR-125 is getting close. Since the rock-crushing plant will be close to the Lower Sweetwater River, he wonders about the effects on the surface and exactly where the plant will be located. He suggested that staff get some more information and maybe arrange a fieldtrip to the site to see what effects it might have. He also talked about a new book on San Diego’s History, which contains a side-by-side picture of the Sweetwater Reservoir and Dam. Staff may want to acquire a copy for the library.

Director Inzunza said he wanted to thank Director Pocklington for representing the Board’s and also National City’s interest at a SDCWA Ad Hoc Committee to look over representation at the SDCWA so we can broaden and better our communication as representatives. He hopes to reach a more focused approach as he works his way through this process. He would like to get more familiar with our wells and what we do in National City in terms of our infrastructure. He intends to get into a one-year schedule to visit the wells in National City and get a good idea of what is underneath the ground. It is very important to put something tangible to what Sweetwater Authority does.

12. CLOSED SESSION

At 4:27 p.m., in compliance with Government Code Section 54956.8, the Board recessed to convene in Closed Session to conference with Legal Counsel regarding real property negotiations. All persons left the room with the exception of the Governing Board, Management Team, Legal Counsel, Board Secretary, and Chief Engineer Smyth. There were no minutes taken, and the session was not tape-recorded.

At 4:31 p.m., Chair Doud declared the meeting to be in open session. Legal Counsel Cowett reported that the Board approved by unanimous vote an addendum to an agreement between Sweetwater Authority and Richard Cardulla to purchase property on Plaza Boulevard for the amount of $15,101.

13. ADJOURNMENT

With no further business before the Board, Chair Doud adjourned the meeting at 4:33 p.m., to the hour of 6:00 p.m. on May 14, 2003.