minutes

Regular Meeting

Governing Board of Sweetwater Authority

April 27, 2005

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, April 27, 2005, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Pocklington called the meeting to order at 3:30 p.m.

· ROLL CALL

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

Directors Absent: Inzunza.

Others Present: Operations Manager Rogers, Legal Counsel Cowett, Treasurer Avery, and Board Secretary Farpón. Staff members Dan Floyd, Hank Gaus, Bill Olson, George Silva, Jim Smyth, and Tom Woodrum.

· PLEDGE OF ALLEGIANCE TO THE FLAG
Chair 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
Employee Service Awards.

Operations Manager Rogers said that every quarter we recognize employees who have served the Authority in 5-year increments. Mr. Rogers introduced, and Chair Pocklington presented service awards to, the following employees: Melody Diaz, Education Specialist; Joanna De Forge, Management Clerk; and Sue Mosburg, Training Coordinator, for five years of service. Hugo Alvarez, Equipment Operator, and Kevin Kasner, Information Systems Supervisor, for ten years of service; and Victor Gaus, Utility Worker II, and Jim Smith, Principal Engineering Technician, for ten years of service.

At 3:37 Chair Pocklington called for a 10-minute recess to have coffee and cake with the recognized employees.

NOTE: Director Inzunza entered the meeting at 3:38 p.m.

The meeting was called back to order at 3:47 p.m., with all members of the Board in attendance.

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA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 Alkire, that the Board approve the minutes of April 13, 2005. The motion carried with Chair Pocklington abstaining as he was absent from that meeting.

3. APPROVAL OF DEMANDS AND WARRANTS
Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve Warrants 99631 through 99818 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of April 18, 2005)

A. Upon a motion made by Director Beauchamp, seconded by Director Doud, the following resolution:
RESOLUTION 05-04
RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY FOR EMPLOYER PAID MEMBER CONTRIBUTIONS TO CALPERS

was passed and adopted by the following vote to wit:

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

B. Upon a motion made by Director Doud, seconded by Director Pocklington, the following resolution:

RESOLUTION 05-05
RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY ADOPTING THE CALPERS EMPLOYER PICK-UP

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

Ayes: Directors Alkire, Beauchamp, Doud, Inzunza, Pocklington, Salas, and Welsh
Noes: None
Absent: None
Abstain: None
C. Upon a motion made by Director Beauchamp, seconded by Director Alkire, the following resolution:

RESOLUTION 05-06
RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
FOR PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS (EPMC) TO CALPERS

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

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

D. Director Alkire made a motion, seconded by Director Welsh, that the Governing Board approve a two-year extension of the contract with Thomas Walters and Associates through June 30, 2007, for a fee payment of $4,500 per month. The motion carried.

5. OPERATIONS COMMITTEE (Meeting of April 20, 2005)

A. Proposed Recycled Water Master Plan. This was an information item and no action was required by the Governing Board.

B. Four Reservoir Intertie Pipeline - Update. This was an information item and no action was required by the Governing Board.

C. Discussion of Administration Building Relocation. This was an information item and no action was required by the Governing Board.

D. Storm Drain Improvements - First Avenue, Chula Vista. This was an information item and no action was required by the Governing Board.

E. City of Chula Vista Sidewalk Improvement Projects. This was an information item and no action was required by the Governing Board.

6. NEW BUSINESS

Upon a motion made by Director Welsh, seconded by Director Beauchamp, the following resolution:

RESOLUTION 05-07
RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
PROCLAIMING NATIONAL PUBLIC WORKS WEEK MAY 15 - 21, 2005

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

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

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

Chair Pocklington reviewed items of interest on the CWA Board meeting agenda. He mentioned that at 1:45 p.m., under the Water Planning Committee, they would be voting on the desalination agreement between Carlsbad and the CWA.

Items under the Administration Committee that he highlighted were the Baxter Annexation, the revised capacity charges, and the Tier 2 pricing. Under the Legislation, Conservation and Outreach Committee, the CWA is proposing to adopt a position of support on SB 820 (Kuehl), SB 409 (Kehoe) and H.R. 1190 (Hunter). Another item that he mentioned was a request from the Board of Water Conservation Garden to integrate the garden's operation into the CWA water conservation program. Regarding desalination, he said that the MWD delegates are trying to schedule a visit to the Carlsbad and the Oceanside desalination plants on May 31st. He briefly reported on some consent items under Engineering regarding capital improvements, and one action item to award a design-build contract for the Lake Hodges/Olivenhain Pipeline project.

He said there would be a closed session to discuss property interests for a regional desalination project at the Encina Power Plant site in the City of Carlsbad. He talked about the negotiations that have taken place between SDCWA and the City of Carlsbad to make this plant a reality.

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

A. First Friday Breakfast - Ronne Froman, CEO, American Red Cross - May 6, 2005 at San Diego Country Club, Chula Vista. None of the Directors will attend this event as they will be attending the ACWA conference in San Jose. No action was required by the Governing Board.

B. ACWA/Groundwater Resources Association of California - Groundwater Management in California Workshop - Tuesday, May 10, 2005, Glendale Hilton, Glendale. None of the Directors will attend this pre-approved event. No action was required by the Governing Board.

C. CSDA, San Diego Chapter Quarterly Meeting - May 19, 2005, Doubletree Club Hotel, San Diego. Directors Alkire, Beauchamp, Doud, Pocklington, Salas and Welsh will attend this pre-approved event. No action was required by the Governing Board.

D. Urban Water Institute - Seawater Desalination and Power Conference at the Hyatt Regency, Long Beach - June 22-24, 2005. Director Welsh will attend this pre-approved event. No action was required by the Governing Board.

9. REPORT OF TREASURER - WANDA AVERY

Ms. Avery reported that the interest rate at the Local Agency Investment Fund is at 2.76 percent.

10. BUDGET REPORT - DIRECTOR OF FINANCE GAUS
Report as of March 31, 2005

Director of Finance Gaus reported that water sales are $1.5 million below budget, which represents a six percent decrease. He stated that some other water agencies have also experienced a decline in their water sales of six to ten percent. Other Income is $275,000 above the expectations, and Interest Income is also higher by $66,000. The Operating Expenses are below the projections by almost $1.8 million. In summary, after nine months into the budget year, our cash flow is $600,000 higher than we had expected. We projected to spend about 63 percent of our capital budget at this time and we have spent 38 percent.

11. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Operations Manager Rogers said that this past Saturday, a total of 69 employees, directors, and family members visited the Loveland Reservoir to see the spilling. He expressed his appreciation to the Communications Section for doing a great job in setting it up. He then referred to the color problems in the water that we have been experiencing and were reported to the Board at its last meeting. Staff believes this problem has been resolved with the proper mix of chemicals and the proper mix of local and imported water. Staff will be doing more tests in the next couple of weeks to determine if it is completely resolved. Over the last two weeks we had seven color complaints.

B. Report of General Manager Bostad: There was no report as General Manager Bostad was in Washington D.C.

12. DIRECTORS' COMMENTS

Director Doud quoted Mark Twain, "Kindness is a language which the deaf can hear and the blind can read."

Director Beauchamp said he was scheduled to be part of the judging for the Xeriscape Garden contest today but, because of conflict with this Board meeting, he was not able to participate.

Director Alkire said he appreciated the tour that was provided Saturday to visit the Loveland Reservoir. He added that Monday and Tuesday he would be at ACWA JPIA. They are going to vote on a new President, Vice President, and three Executive Committee member positions. This board has already endorsed the President and Vice President and all three nominees for the Executive Committee members, Incumbent Mary Gibson, Mission Springs Water District; Incumbent Bill Knutson, Yuima Municipal Water District; and Charles Muse of Helix Water District.

13. CLOSED SESSION

There was no need for one.

14. ADJOURNMENT

With no further business before the Board, Chair Pocklington adjourned the meeting at 4:44 p.m., to the hour of 6:00 p.m. on May 11, 2005.