minutes

Regular Meeting

Governing Board of Sweetwater Authority

May 23, 2007

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, May 23, 2007, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Beauchamp called the meeting to order at 3:30 p.m.

• ROLL CALL

Directors Present:

Directors Absent:

Others Present:
Alkire, Beauchamp, Doud, Morrison, Pocklington, Thomas, and Welsh

None

General Manager/Treasurer Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Delegatee Farrow, and Board Secretary Schoonderwoerd. Staff members: Rick Alexander, Cynthia Berndt, Janet Gonzalez, Bill Olson, George Silva, Jim Smyth, Don Thomson, and Tom Woodrum. Also in attendance was Lin Wurbs.

• PLEDGE OF ALLEGIANCE TO THE FLAG
Director Welsh 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

ACTION CALENDAR ITEMS

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA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

2. CLOSED SESSION

At 3:31 p.m., in compliance with Government Code Section 54957.6, the Board recessed to convene in Closed Session to confer with the General Manager and Operations Manager regarding labor negotiations. There were no minutes taken, and the session was not tape-recorded.

At 4:08 p.m., Chair Beauchamp declared the meeting to be in open session. Director Pocklington made a motion, seconded by Director Morrison, that the Governing Board increase the Retiree Healthcare Fund by $333,400 for the Fiscal Year 2007-08 Proposed Budget. The motion carried.

3. APPROVAL OF MINUTES

Director Alkire made a motion, seconded by Director Thomas, that the Governing Board approve the minutes of the April 25, 2007 meeting. The motion carried with Director Doud abstaining due to his absence at this meeting.

4. APPROVAL OF DEMANDS AND WARRANTS

Director Thomas made a motion, seconded by Director Pocklington, that the Governing Board approve Warrants 109785 through 110104 including all voided checks. Director Thomas requested that the description on Warrant 109977 be changed to reflect her attendance at the CSDA Quarterly Meeting in place of Director Pocklington. The motion carried with Director Thomas’s amendment.

5. COMMUNICATIONS COMMITTEE (Meeting of May 14, 2007)

A. Review of Draft Water Quality Report and Calendar. Director Welsh commented that the calendar is an incredible addition to the Authority’s communication outreach. General Manager Bostad noted that the calendar is a 2007-08 fiscal year calendar. This was an information item and no action was required by the Governing Board.

B. Review of award recognition for the “Source” employee newsletter from the California Association of Public Information Officers (CAPIO) 2007 Awards Program. Operations Manager Rogers praised the Authority’s Communications Section, stating that this award represents their hard work and due diligence, and he congratulated them on this achievement. General Manager Bostad added that the newsletter is a very important communications device for staff and families. This was an information item and no action was required by the Governing Board.

C. Updated calendar of scheduled events. This was an information item and no action was required by the Governing Board.

6. OPERATIONS COMMITTEE (Meeting of May 16, 2007)

A. Discussion of the location of low pressure customers. The Board reviewed a map of all the low pressure areas in the system and the Authority’s policy on upgrading these services through budget funding allocations. Director Welsh inquired about the policy concerning customer agreement before upgrades. Operations Manager Rogers clarified that, if some consumers desire to have their pressure raised and the pressure is above 40 psi at the current time (Sweetwater Authority policy), 100 percent agreement is necessary at the consumers’ expense. If the pressure is less than 40 psi on services installed after 1977, the Authority pays for the upgrade. This was an information item and no action was required by the Governing Board.

B. Discussion of street paving following pipeline replacement. Director of Engineering Smyth provided information related to street paving repairs following pipeline replacements by the Authority in response to concerns expressed by a customer, Mr. Gerry Scott, regarding upgrading the overall aesthetics of the street repairs. Director Thomas requested that, in response to Mr. Scott’s concern, the record reflect the Authority’s policy of meeting the street repair standards established by the Cities of Chula Vista and National City and the County of San Diego. Operations Manager Rogers stated that there are two issues involved. Mr. Scott’s issue was not with the Authority’s paving, which Mr. Scott thought was outstanding, but that it is not aesthetically pleasing to have a black finish covering a three-foot-wide repair area on a street with gray paving, and he would like the Authority to pave the entire street. Mr. Rogers stated once again that the Authority follows the standards for street repairs as set forth by the Cities and County. On the second issue regarding the aesthetics of the repair on “E” Street near 805, Mr. Rogers stated that the northern-most lane expands beyond the size of a normal 12-foot lane. The City obligated the Authority to cover 15-18 feet, not all the way to the end, but still beyond what is normally expected. Repaving an entire street every time we repair would drive all utility rates up astronomically. Neither the Authority nor the City has the funds to do that. This was an information item and no action was required by the Governing Board.

C. Closed Session. In accordance with Government Code Section 54956.8, the Committee met in closed session to confer with the Director of Engineering concerning the Authority’s future San Diego Formation Well on Kampgrounds of America property. There was no reportable action.

7. FINANCE AND PERSONNEL COMMITTEE (Meeting of May 21, 2007)

A. Review of Quarterly Leak Adjustment Report - January through March 2007. This was an information item and no action was required by the Governing Board.

B. Discussion of per diem for Water Conservation Garden meetings and events. Following a discussion on the practices followed by other Garden member agencies, the Governing Board agreed to continue its current policy of preapproved per diem for attendance by the Representative or Alternate at official Garden Board meetings and approval of per diem for unofficial Garden events by agendized action on a case-by-case basis. No action is required by the Governing Board.

C. Review of FY 2007-08 Budget. This was an information item and no action was required by the Governing Board.

D. Closed Session. In accordance with Government Code Section 54957.6, the Committee met in closed session to confer with the General Manager and Operations Manager regarding labor negotiations. There was no reportable action.

E. Closed Session. In accordance with Government Code Section 54957, the Committee met in closed session to consider the appointment of the Deputy Operations Manager. There was no reportable action.

8. CONSULTANT SELECTION COMMITTEE (Meeting of May 22, 2007)

Chair Beauchamp made a motion, seconded by Director Welsh, that the Governing Board award a contract to CH2M Hill for design and environmental services for the Phase 2 Richard A. Reynolds Desalinization Facility Expansion and direct staff to begin final contract amount negotiations with CH2M Hill to be forwarded for Board approval through the Finance and Personnel Committee. Director Alkire noted that he was very impressed with the time-intensive pre-meeting work done by CH2M Hill. The motion carried.

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

Director Pocklington reported on items of interest on the May 24th CWA Board agenda. The Board will consider a recommendation to accept the San Diego County Grand Jury Report on the Emergency Storage Project and direct the General Manager to respond to the report’s recommendations. Also under consideration is the Notice of Completion for the Lake Hodges to Olivenhain Pipeline and a $300,000 professional services contract with GEI Consultants for the development of the Lake Hodges Reservoir Regulating Manual. Director Morrison noted some concerns regarding this contract. The manual is being based on a City of San Diego manual already in existence, which lays out the movement of water, as well as water quality control. Of concern is the question whether a contract for the movement of water supersedes the water quality issue, and whether money made from this will go to water agencies that get Lake Hodges water and may need to upgrade their filtration systems. Another concern is that the study to determine if the water is usable is scheduled for the end of the project, not the beginning. The Board will also consider the execution of a funding agreement with the Department of Water Resources and a resolution for Groundwater Conjunctive Use Projects.

A public hearing date for CWA’s calendar year 2008 Rate and Charges and the Annual Standby Availability Charge will be set. Basically, the Infrastructure Access Charge rate will go from $1.56 to $1.70 per month per homeowner, and the raw water cost per acre-foot will go from $365 to $390 and will include the MWD water rate increase of 5.8 percent. Director Pocklington noted that Ed Rogers, the representative from Camp Pendleton since 1994, is retiring and will be replaced by Daniel Lizzul, whose term expires in January 2008. Director Morrison added that there is a presentation on the Olivenhain Reserve. CWA has agreements with the Bureau of Land Management for Olivenhain to oversee access to BLM property, and there will likely be questions and discussion over the $880,000 two-year cost to oversee these trails.

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

A. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve per diem for Chair Beauchamp’s attendance at the Water Conservation Garden Bird and Butterfly Garden Grand Opening Ceremony on May 11, 2007 and the Spring Garden Festival on May 19, 2007. The motion carried.

B. Director Doud made a motion, seconded by Director Alkire, that the Governing Board Approve per diem for Director Pocklington’s attendance at the Hilltop High School Awards Assembly on June 6, 2007, at 6:00 p.m. Director Welsh requested that Mrs. Avery’s daughter be invited to attend and be acknowledged at the assembly. The motion carried.

C. Director Pocklington made a motion, seconded by Director Thomas, that the Governing Board request a waiver of the Board lodging and meal limit policy for Directors’ attendance at the California Water Law and Policy Conference in San Francisco on June 11-12, 2007. The Board agreed to review this policy through the Finance and Personnel Committee at a future meeting. The motion carried.

D. Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve per diem for Directors wishing to attend the dedication ceremony for the completion of Otay Water District’s Recycled Water Supply Link Project on Friday, June 1, 2007 at 11:00 a.m. The motion carried.

11. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Chair Beauchamp reported on the South County Economic Development Council meeting on May 1st. He stated that this meeting focused on energy and there was a presentation by San Diego Gas and Electric.

Director Doud reported on the First Friday meeting on May 4th. Andy Yuen, Project Leader of San Diego National Wildlife Refuge complex, gave a presentation on the protection of the rare birds of Southern California coastal marshes. This refuge was created to support the Multiple Species Conservation Plan. Director Thomas also attended and submitted a copy of the PowerPoint presentation to be kept on file with the Secretary. She believed it to be pertinent in that it includes all of the South Bay National Wildlife Refuge items and some of the opportunities, connections, and projections for the project.

All Directors except Chair Beauchamp attended the ACWA Spring Conference on May 7-11. Director Welsh reported that the Huell Howser presentations were very interesting, and that the Water Forum debate on surface storage was of particular relevance to this Board. Director Doud reported on several bills reviewed by ACWA’s Federal Affairs Committee and the views presented by Department of the Interior Assistant Secretary Mark Limbaugh on desal and the new big challenge of brine disposal. Director Pocklington reported on an interesting display of a Toyota Prius, which got up to 100 mpg, and the suggestion was to begin looking into natural gas for fuel. Director Thomas gave a report on the USGS Cooperative Water Program held in conjunction with the ACWA conference. She stated that the benefits of the USGS National Streamflow information program in California, as well as nationally, was presented and strategic plans for the future cooperators streamgaging network was carried out. She added that the Authority’s General Manager, Dennis Bostad, was a panel presenter and also did an outstanding job as a facilitator in the subsequent future strategic planning discussion groups.

Director Alkire attended the ACWA/JPIA meetings. Reporting on the Executive Committee election, Director Alkire stated that he cast the Authority’s votes for Merle Aleshire and Chuck Muse. Joan Finnegan, Orange County MWD, was unopposed for the office of vice president, and the two Committee Member positions were won by Merle Aleshire, Valley Center MWD, and Joseph Dion, Citrus Heights Water District. There was a heated discussion to no conclusion on the subject of reforming the Executive Committee’s expense policies to bring them more in line with the policies of most of the member agencies. He commended staff on Sweetwater Authority’s receipt of 11 of the 49 Workers’ Compensation suggestion awards, and he reported that the Workers’ Compensation approved rate reduction is 28 percent. With regard to the JPIA expense reform discussion, Director Morrison added that his suggestion is that if someone defends their expenses, they should be willing to do so publicly. He noted that ACWA’s theme for the next five to ten years was on studying and planning, not on building.

Director Doud attended the CSDA Special Districts Legislative Days on May 14-15 in Sacramento. He reported that only four or five legislators attended the evening reception. He took brochures and DVDs on the Carlsbad Desal Plant to the offices of Senator Ducheny and Assembly Members Horton and Salas, but was unable to meet with them. He left the information with their staff and encouraged their support for the project to the Coastal Commission.

Director Thomas stated that the Integrated Regional Water Management Planning program at the Council of Water Utilities meeting on May 15th had two goals – one goal was a high quality of life and the secondary goal was money. Rob Hutsel of the San Diego River Park Foundation indicated that advancing the partnerships between the nongovernmental stakeholders as well as the various water agencies was needed to get people involved.

Chair Beauchamp reported on his attendance at the Water Conservation Garden Board Meeting on May 9th. They discussed trying to get corporate members at $25,000 each and also getting developers to participate. He and others toured McMillin’s Liberty Town at the Naval Training Center to see if it was suitable to promote as a place to visit to see water conservation. Because the Garden is in the eastern part of the county, there is a need to find other locations where people can visit to see water conservation plantings in a mature residential setting. Chair Beauchamp also attended the Garden’s Bird and Butterfly Garden Opening on May 11th and the Spring Garden Festival on May 19th. He reported that there were thousands of people in attendance and there was good public information coverage, including a television remote. He noted that, with all the promotion, attendance at the Garden has increased a great deal but parking has not. So, they are working with the college to control this problem.

Director Morrison reported that the National City Chamber of Commerce meeting on May 16th featured a presentation on small business practices.

Chair Beauchamp reported that the CSDA Quarterly Meeting on May 17th featured the scholarship awards, and Hilltop High’s Andrew Longaker, along with his parents, was present to receive his CSDA award and recognition from Sweetwater Authority.

Director Pocklington reported on the Sweetwater Authority Leader Tour on May 18th. He had an interesting discussion with David Scherer, Director of the City of Del Mar’s Public Works Department. Director Thomas added that there was a nice cross-section of attendees, including a Professor of Geography from SDSU, the Chula Vista City Engineer, two Helix Water District directors, and a representative from the Filipino-American Chamber of Commerce. She complimented General Manager Bostad on his presentation. Director Morrison added that the Filipino-American Chamber representative is also the CWA Public Affairs Manager.

12. BUDGET REPORT – DIRECTOR OF FINANCE FARROW

Report as of April, 2007. Director of Finance Farrow reported that Water Revenue is $190,000, or 0.6 percent, over budget. She stated that she does not foresee any change that will meet or exceed revenue projections for FY 2006-07. Operating Expenses are $490,000, or 2.1 percent, over budget. In comparison to the expenses of prior months amounting to $900,000 to $765,000, this month reflects Surface Storage Operating Agreement credits of approximately $330,000, which brings the operating budget closer in line to the projections.

13. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Mr. Rogers had nothing to report.

B. Report of General Manager Bostad: General Manager Bostad brought the Board’s attention to the Sweetwater Authority Recreation Association summer picnic invitations at their places. He noted that news reports may be on the way due to a major push from Metropolitan Water District to start communicating that we are expecting the driest year on record in 100 years. CWA is talking about implementation of the first phase of the Drought Management Plan, speaking to voluntary conservation and preparation for evaluating potential spot purchases of water. He added that there are issues at the federal level, many challenges and strains on the regional system, and next year will not be an easy year if we don’t get rain in some of our systems. He directed the Board to the monthly report of activities for April.

14. DIRECTORS’ COMMENTS

Director Welsh commented that the latest issue of ACWA News featured a full-page report on Boyle Engineering’s project to supply water for a community in India, which tied in well with the video viewed at the last South Bay Irrigation District Board meeting.

Director Doud stated that Raymond Cruz, a retired director from Vallecitos Water District, passed away and a note of sympathy from the Board was posted to the online obituary guest book. He stated that the San Diego Regional Water Quality Control Board, will hold public hearings on June 13th regarding a mandatory minimum penalty against the CWA San Vicente Pipeline Project and a complaint in the amount of $120,000 for waste discharge from groundwater extraction and construction, as well as waste discharge into San Diego Bay storm drain from a car wash on Pacific Highway. He noted an article in the ACWA News on perchlorate. At the ACWA Conference, he learned that the East Valley Water District has been fighting perchlorate, which they thought came from rocket fuel, for about ten years. However, they found that it was actually from imported fertilizer from back in the 1920’s that contaminated their groundwater, and it is going to cost them $50 million dollars to clean up. He then shared a humorous fish story that appeared in the Union Tribune about an alleged catch of several large bass at Loveland Reservoir.

Director Pocklington commented that he and several other MWD directors went to Needles, CA and met with PG&E for an all-day tour. Chromium 6 is a major problem in that area and PG&E has had suits before about this. They really seem to be working hard to resolve the problem and their biggest issue is trying to get all of the approximately 20 agencies, including about half a dozen Indian tribes, involved. They are looking forward to MWD trying to take the lead to help resolve these problems. They would like to have a decision by the end of next year as to how they are going to handle it and hopefully have the problem solved by 2012.

15. CLOSED SESSION

A. At 5:33 p.m., in compliance with Government Code Section 54956.8, the Board recessed to convene in closed session to confer with the Director of Engineering regarding the Sweetwater Authority future San Diego Formation Well on Kampgrounds of America Property and the purchase of an easement from Kampgrounds of America, Inc. for San Diego Formation Well No. 7. All persons left the room with the exception of the Governing Board, Management Team, Legal Counsel, Director of Engineering, Director of Water Quality, Director of Finance, Administrative Services Director, Information Systems Director, and Board Secretary. There were no minutes taken, and the session was not tape-recorded.

At 5:49 p.m., Chair Beauchamp declared the meeting to be in open session. There was no reportable action taken by the Board.

B. At 5:49 p.m., in compliance with Government Code Section 54957, the Board recessed to convene in closed session to discuss public employee appointment for the position of Deputy Operations Manager. All persons left the room with the exception of the Governing Board, Management Team, Legal Counsel, and Board Secretary. There were no minutes taken, and the session was not tape-recorded.

At 5:53 p.m., Chair Beauchamp declared the meeting to be in open session. Director Doud made a motion, seconded by Director Morrison, that the Governing Board approve the inclusion of the position of Deputy Operations Manager in the Fiscal Year 2007-08 Budget, and that Director of Engineering James Smyth be appointed to the position effective July 1, 2007. The motion carried.

16. ADJOURNMENT

With no further business before the Board, Chair Beauchamp adjourned the meeting at 5:55 p.m.

R. Mitchel Beauchamp, Chair
Attest:

Rita Schoonderwoerd, Board Secretary