minutes

Regular Meeting

Governing Board of Sweetwater Authority

May 14, 2008

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, May 14, 2008, 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, Morrison*, Pocklington, Thomas

Directors Absent: Welsh

Others Present: General Manager Rogers, Operations Manager Smyth, Legal Counsel Cowett, Treasurer Farrow, and Board Secretary Schoonderwoerd. Staff members: Jack Adam, Rick Alexander, Bill Olson, George Silva, Don Thomson, and Tom Woodrum.
Also present: Barbara Filner

• PLEDGE OF ALLEGIANCE TO THE FLAG
Director Alkire 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.

• CHAIR’S PRESENTATION
There was none.

*NOTE: Director Morrison entered the meeting at 6:01 p.m.

ACTION CALENDAR ITEMS

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA

Director Doud made a motion, seconded by Director Thomas, that Item 12. Closed Session be moved to Item 5 and that all subsequent items be reordered on the agenda. The motion carried. Director Thomas also requested the addition of her report on attendance at the Cuyamaca/Palomar College IDRC Water Grant kickoff meeting on April 30th as Item 8.J.

2. APPROVAL OF MINUTES

Director Thomas made a motion, seconded by Director Alkire, that the Governing Board approve the minutes of the April 23, 2008 meeting. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Thomas, that the Governing Board approve Warrants 114159 through 114327 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of May 5, 2008)

A. Director Thomas made a motion, seconded by Director Alkire, that the Governing Board postpone membership in the Multi-State Salinity Coalition for six months in order to allow further evaluation of the organization, at which time an update will be provided to the Board. The motion carried.

B. Review of Quarterly Leak Adjustment Report for the period January through March 2008. This was an information item and no action was required by the Governing Board.

C. Fiscal Year 2008-09 Budget update. This was an information item and no action was required by the Governing Board.

5. CLOSED SESSION

At 6:06 p.m., in compliance with Government Code Section 54956.9 (b), the Board recessed to convene in closed session with Legal Counsel concerning anticipated litigation regarding one item. All persons left the room with the exception of the Governing Board, Legal Counsel, and Ms. Filner. Note: Director Morrison left the meeting at 6:40 p.m. The management team joined the session at 6:50 p.m. There were no minutes taken, and the session was not tape-recorded.

At 7:37 p.m., Chair Beauchamp declared the meeting to be in open session. No reportable action was taken by the Governing Board. Following a roll call, the meeting continued with all members of the Board present except Directors Morrison and Welsh.

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

Chair Beauchamp reported that the City of San Diego expressed concerns regarding the 3.0 percent increase on its $65,000 commitment. The increases were rescinded due to some last minute donations. The homeowners association workshops are turning out to be very interesting, and it is appearing that Vallecitos Water District may join. On Saturday at 10:00 a.m., the “Ribbons Around the Garden” event will feature the landscape awards ceremony and dedication of a new garden. There is an effort underway to tie in BMP credits for membership in the Garden, as well as an effort to recruit Sycuan and Viejas for memberships. Cox Cable is running public service announcements on Channel 4 and is looking for a major advertiser. They have Coca-Cola and San Diego Target stores involved. There is a special campaign underway to get a shade structure for the amphitheater, and help may be solicited from the County Board of Supervisors. Some leadership in water conservation is needed, because they are finding that homeowners associations, landscape architects and contractors, and complex managers do not know how to save water. The Garden is attempting to get involved with that leadership through its presentations, but consumers need to be prepared for the drought conditions to come.

7. NEW BUSINESS

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

RESOLUTION 08-10

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
PROCLAIMING NATIONAL PUBLIC WORKS WEEK MAY 18-24, 2008

was passed and adopted by the following vote to wit:

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

B. The Governing Board agreed to cancel the regular Board meeting of May 28, 2008 due to lack of a quorum and hold an adjourned regular meeting on Tuesday, May 27, 2008 at 4:00 p.m.

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

A. Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve per diem for Director Thomas’s attendance at the First Friday Meeting on May 2, 2008 – Program: Presentation by Deborah Seiler of the San Diego County Registrar of Voters. The motion carried.

B. Director Pocklington made a motion, seconded by Director Thomas, that the Governing Board approve a waiver of Board Policy 510 for Director Morrison’s accommodation costs on May 7-8, 2008 during the 2008 ACWA Spring Conference in Monterey, CA. It was noted that, upon arrival, an additional resort fee of $25/night was applied to the accommodation costs. The motion carried.

C. Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve per diem for Director Beauchamp and other directors who attend the Water Conservation Garden “Ribbons Around the Garden” event and California-Friendly Landscape Contest and Conservation Champion Awards on May 17, 2008. Director Thomas expressed interest in attending. The motion carried.

D. Council of Water Utilities San Diego County Meeting at StoneRidge Country Club on Tuesday, May 20, 2008 at 7:15 a.m. – Program: “Update on Quagga Mussels” presented by Ric De Leon, Microbiology Unit Manager, Water Quality Section, Metropolitan Water District. A signup sheet was circulated for directors wishing to attend this pre-approved event. No action was required by the Governing Board.

E. Director Pocklington made a motion, seconded by Director Alkire, that the Governing Board approve per diem for directors who wish to attend the Best Best & Krieger reception introducing the Water: H20 – Life Exhibition at the San Diego Natural History Museum on May 22, 2008 from 6:00 p.m. to 8:30 p.m. Legal Counsel Cowett noted that San Diego’s Natural History Museum is the only west coast stop for this traveling exhibition, which will run for several months beginning in July. A local exhibit will also run in conjunction with the national exhibit, and this event is to get input from the water industry. The motion carried.

F. Western Coalition of Arid States (WESTCAS) 2008 Summer Conference at the Kona Kai Resort in San Diego on June 25-27, 2008. A signup sheet was circulated for directors wishing to attend this pre-approved event. A conflict exists with the June 25th Board meeting, and based on attendance, the Board will consider rescheduling the Board meeting to June 24th at 4:00 p.m. No action was required by the Governing Board.

9. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Directors Pocklington and Doud attended the Chula Vista Interagency Water Task Force Meeting on April 28th. They reported that John Jamieson was elected Chair and Director Doud was elected Vice Chair.

Chair Beauchamp reported that he and General Manager Rogers attended the Joint Board Meeting planning session on April 30th. The joint agency representatives discussed agenda items and tentatively set the Joint Board Meeting date for Friday, September 19, 2008.

Director Doud reported on the First Friday Meeting of May 2nd. Supervisor Greg Cox introduced Deborah Seiler who gave a briefing on the Registrar of Voters. She mentioned that 2008 is an unusual year with three major elections. Ms. Seiler has overseen elections in Nigeria and Romania, among other countries. Director Thomas added that they have quite a number of positions available if anyone is interested in working on the elections.

Chair Beauchamp attended the Chula Vista Third Avenue Village Cinco de Mayo Festival on May 4th. One visitor to the booth questioned him about water supply and the system, so he was glad to have the system map set up at the booth. He commended Danny Gutierrez, Customer Service Representative II, on his booth set-up and tear-down efforts at these community events. Director Pocklington stated he heard no complaints about the cost of water. Director Doud stated that he received one complaint on water rates. Director Thomas stated she had a great time promoting the Water Conservation Garden and hoped it would increase attendance.
Directors Doud and Beauchamp attended the Twin Oaks Valley Water Treatment Plant dedication on May 5th. Director Doud reported that the 100 mgd underground membranes were very impressive. It was noted that we do not have to worry about the Skinner Plant any longer, which is a good thing. Director Beauchamp noted that Scott McClelland, the Authority’s Water Treatment Superintendent/Principal Engineer, was a consultant on the project at the beginning.

Chair Beauchamp attended the South County Economic Development Council meeting on May 6th. There were two presentations; one on economics and the recession, and the other on the exodus of people from the area. Many people are leaving for Arizona or Texas because they cannot afford the cost of living.

Director Alkire reported on the ACWA/JPIA meetings on May 5-6. Harve LaBounty, Director of Risk Management, announced he will retire next month. Risk Management will now be under Andy Sells, Chief Financial and Operations Officer. There are 83 new training videos that have been added to the library, for a grand total of 650, which can be ordered on the JPIA website. Target Safety is a new online training; there are 300 classes available, and if an employee completes three of the classes within one year, the cost per employee is free. Sweetwater Authority has signed up for the training suite. General Manager Rogers added that this is an alternative to contracting out for this training. JPIA’s workers compensation excess coverage (in excess of $2 million) contract expires on the first of July, and after reviewing several competitive proposals, Arch Insurance, which proposed a 27 percent decrease, was selected. The Board approved an 11 percent rate reduction for its members. Director Alkire reported that Wes Bannister was reelected as president of the Executive Committee, and Bill Knutson and Mary Gibson were elected as members. JPIA has a newly revised website.

Reporting on the ACWA 2008 Spring Conference, May 6-9, Director Doud stated he attended the Desalination Subcommittee business meeting. The Department of Water Resources has a downloadable California Planning Handbook on Desalination on its website. ACWA sees desalination as one of many strategies that can play a role in boosting the state water supply, and will promote to support more regional water supplies including ocean and brackish desalination. He also attended the Communications Committee meeting, where he suggested ACWA give desalination a higher priority, and the committee agreed to take it to the Board. He was appointed to a subcommittee to arrange ACWA’s centennial celebration in the year 2010. He graded Clair Hill scholarship applications, and he has nine applications to review for the ACWA law and policy scholarship, a new $7,000 scholarship in honor of Steve Hall which will be awarded at the fall conference. He gave highlights from the subcommittee meeting on the quagga and zebra mussels and gave staff a DVD to review for possible viewing at a future meeting. He gave the secretary a detailed conference report to be kept on file.

Director Pocklington added that the tribute to Dave Kennedy, an advocate of the peripheral canal, was outstanding. The first report on climate change was outstanding and thorough. In California, the temperature has risen one degree in 100 years, and the water level at the San Francisco Golden Gate Bridge has gone up seven inches. He also attended sessions on GASB-45 and solar paneling.
Director Alkire reported that the most notable session he attended was the state issue forum on the Sacramento-San Joaquin Delta. After hearing the same thing every six months, he does not see anything happening until all the parties (governor, legislature, conservationists, and water community) finally agree to do something.

Director Thomas added her praise for the presentation by State Meteorologist Elissa Lynn and suggested she could provide a presentation for one of our local organizations in the future. Tim Quinn presented the strategic plan that was a meshwork of blocks related to various items relating to all of the different types of agencies we have and how they would be served by the various aspects of the ACWA strategic plan. She attended the Safe Drinking Water and Clean Water Subcommittees. One of the main concerns was an attempt to outlaw the use of chlorine for inherent safer technology; the question was that they did not include input from water agency chemists. Another big concern is endocrine disrupters; money will be made available as part of a research bill that will involve the USGS and the Department of Health and Human Services. They are looking for an outside panel to evaluate the research agenda, and she hopes this would include water agency people. The cost associated with arsenic treatment was another item of concern and discussion. Director Thomas discussed other issues brought up at these committees. A new publication called Inside EPA is going to be correlating the EPA with some health benefits. She also outlined all of her questions and homework she has been doing relative to artificial turf, the need for assessment, the type of turf, and appropriate uses. She provided specifics and received an excellent response from the Clean Water Subcommittee. She added that the next day’s headline in USA Today’s sports section had a two-page spread dealing with an artificial turf project in New Jersey and its deleterious effects due to lead, among other things.

Director Doud attended the CSDA Special Districts Legislative Day on May 12th and reported that speakers included Dan Walters of the Sacramento Bee, Assembly Member Anna Caballero, and Senator Gloria McLeod. They spoke mostly on budget concerns. He attempted to schedule meetings with Assembly Members Shirley Horton and Joel Anderson, but was unsuccessful.

Director Thomas attended a kickoff for Project Waterworks at Cuyamaca College on April 30th, which is a collaboration between various stakeholders in the water industry, Palomar College, and Cuyamaca College, as well as the Water Conservation Garden. It is an industry driven regional collaboration (IDRC). The Authority’s Program Supervisor, Sue Mosburg, is a part of the team that put this together. Approximately 50 people attended the event. There were optional field trips to either the Conservation Garden or the campus laboratories. She left information on the program with staff.

10. REPORT OF TREASURER

The investment portfolio and treasurer’s report for the month of April 2008 were noted and filed. Ms. Farrow pointed out that the month of April showed a decrease in the monthly investments cash balance of $3 million, representing the principal payment to the bond holders, which occurs every year in April.

11. MANAGEMENT REPORT

A. Report of Operations Manager Smyth: Mr. Smyth thanked the Board for the opportunity to work with them in his new position. He provided an update on quagga mussels and confirmed that they are now at Sweetwater Reservoir. Initially, tests were positive for zebra mussels as well, but retesting proved that this was incorrect. There are quagga mussels in the water supply from MWD. They have not turned up yet in traps that are placed in various places in the reservoir, and staff is working with CWA to install a chlorine dioxide system to be able to inject this disinfectant into the water supply before it goes into Sweetwater Reservoir. Director Pocklington noted that Senator Feinstein is working with MWD to get some funding assistance back in Washington to help with this problem.

B. Report of General Manager Rogers: Mr. Rogers reiterated his gratitude for the opportunity to work with the Board in his new position as General Manager. He referred to Director Doud’s encounter at the Cinco de Mayo booth with a customer unhappy about what she perceived was a rate increase due to the 5/8-inch meter. He noted that this does not reflect a rate increase; rather, the breakout of the 5/8-inch meter is now showing up on the new bill format. Almost all of the calls received about the new bill have been positive. Mr. Rogers added that he received a letter of intent today from the City of Chula Vista outlining the object of the discussion about the possible relocation of the Authority’s office sites. This item will be brought to the Board through the Operations Committee. He reminded the Board that any move would involve no cost to the Authority. He added that Robert Yamada, Water Resources Manager at CWA, was scheduled to make a presentation to the South Bay Irrigation District Board on May 19th on CWA’s 2008 water supply outlook. He noted that, as they heard at many of the sessions at the recent ACWA Conference, the California water picture is not good. At the end of February, the normal snowpack was at 101 percent, and with no activity in March and April, it has dropped to 67 percent. Following feedback from various member agencies, CWA has presented a new model drought ordinance to be used by member agencies at their own discretion. Staff will bring a proposal for Sweetwater Authority’s drought ordinance to the Board for approval in the next few months. He reiterated that the Authority’s goal is not to impose penalties, but to offer suggestions and rely on its customers to do whatever they need to do to achieve the necessary cutbacks.

12. DIRECTORS’ COMMENTS

Director Doud shared a newspaper piece that appeared in the Monterey County Herald on the 1905 Gas Au Lec, noting it was the first “hybrid” car and sold for $5,000.

Director Pocklington added that he read in the paper recently that the cost of gas these days has cut the estimated payback time on the purchase of a hybrid vehicle from five years to 2.6 years. He added that he met some people at the ACWA Conference who worked with Director of Finance Farrow and had nothing but the very best to say about her. He congratulated Mark Rogers and Jim Smyth on their new positions and said he looks forward to the Authority continuing as the great water district it has been in the past.

Director Thomas echoed Director Pocklington’s remarks, thanked Mark Rogers and Jim Smyth for all they do for the agency, and welcomed them aboard.

Director Alkire shared a Sweetwater Authority stress ruler that the old hands in the room may have remembered as one of the Authority’s promotional items handed out about 10 years ago.

Chair Beauchamp commented that he visited the filter plant earlier in the day and met intern Nick Molsberry. He saw the status of the NCCP document; discussed solutions for the quagga mussel issue with Don Thomson; and noted that he has some bird traps that he is not using and can be used by the Authority’s biologist. He announced the possibility that he may run for City Treasurer of National City. He congratulated Mark and Jim as well, saying that we have a good team and everyone is excited about moving on with a new administration and new ideas and concepts.

13. ADJOURNMENT

With no further business before the Board, Chair Beauchamp adjourned the meeting at 8:53 p.m. to May 27, 2008 at 4:00 p.m.