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minutesRegular Meeting May 24, 2006 The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, May 24, 2006, 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, Morrison, Pocklington, Salas and Welsh. Directors Absent: None. Others Present: General Manager/Treasurer Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Delegatee Farrow, and Board Secretary Schoonderwoerd. Staff members Rick Alexander, Kevin Kasner, Bill Olson, George Silva, Jim Smyth, and Tom Woodrum. • PLEDGE OF ALLEGIANCE TO THE FLAG • OPPORTUNITY FOR PUBLIC COMMENT (Government Code Section (54954.3) • CHAIR’S PRESENTATION ACTION CALENDAR ITEMS 1. ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA Director Beauchamp made a motion, seconded by Director Welsh, that the Communications Committee meeting of May 22, 2006 be added to the agenda as Item 7, and that all subsequent items be reordered. The motion carried. 2. APPROVAL OF MINUTES Director Welsh made a motion, seconded by Director Alkire, that the Governing Board approve the minutes of the April 26, 2006 meeting. The motion carried with Director Morrison abstaining. 3. APPROVAL OF DEMANDS AND WARRANTS Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve Warrants 105032 through 105412 including all voided checks. The motion carried. 4. FINANCE AND PERSONNEL COMMITTEE (Meeting of May 1, 2006) A. Request for Audit Services for Fiscal Years ending June 30, 2006 and 2007. No action was required by the Governing Board. B. CLOSED SESSION. 5. FINANCE AND PERSONNEL COMMITTEE (Meeting of May 17, 2006) A. Director Alkire made a motion, seconded by Director Welsh, that the Governing Board award a two-year agreement for audit services to Bartlett, Pringle, and Wolf, LLP in the amounts of $17,500 for the fiscal year ending June 30, 2006, and $18,300 for the fiscal year ending June 30, 2007, subject to verification of references, and approve an extension of the agreement for up to four additional years, subject to Board approval, at which time the Authority will consider rotating audit services. Interim Director of Finance Farrow reported that she had contacted the references for Bartlett, Pringle and Wolf and received glowing reviews from all of the firms. The motion carried. B. Review of Fiscal Year 2006-07 Operating Budget. This was an information item and no action was required by the Governing Board. 6. OPERATIONS COMMITTEE (Meeting of May 17, 2006) A. Director Doud made a motion, seconded by Director Alkire, that the Governing Board award a sole-source contract in the amount of $7,000 to Fuller’s Plumbing Service, Inc., 1063 Third Avenue, Chula Vista, CA 91911, to install the 26 pressure-regulating valves for the Berland Way pressure zone conversion project, with the understanding that staff will not proceed with the project until all 26 agreements are received, or the project will be cancelled. Staff will notify all of the property owners by letter explaining the conditions and deadline for this project to proceed. If there are outstanding agreements by the deadline, a subsequent letter will be sent noting the project cancellation. The motion carried. B. Environmental review for the Robert A. Perdue Water Treatment Plant Master Plan. General Manager Bostad made copies of the Draft Environmental Impact Report available for the Board. This was an information item and no action was required by the Governing Board. C. Director Doud made a motion, seconded by Director Welsh, that the Governing Board direct staff to develop solar energy as an alternative energy supply. The motion carried. D. Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve sharing equally with the City of Chula Vista in the replacement cost of 36 water laterals in Main Street, and that funding for this project be provided in the 2006-07 fiscal year budget. The motion carried. E. Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve the purchase of four steel plates from Allied Trench Shoring Services for the protection of the SDCWA pipelines, and that funding in the amount of $9,850.75 be available from the Unallocated Reserve Fund to cover this cost. The motion carried. 7. COMMUNICATIONS COMMITTEE (Meeting of May 22, 2006) A. Update on Chula Vista Nature Center Project. The Board viewed a portion of the video to be included in the project simulating a fly-over of the Sweetwater watershed. This was an information item and no action was required by the Governing Board. B. Discussion of the Draft Annual Water Quality Report and consideration of next year’s calendar format. This was an information item and no action was required by the Governing Board. C. Update on 2006 Leader Tours and the new Environmental Tour. This was an information item and no action was required by the Governing Board. D. Update on navy blazer order with Sweetwater Authority logo for Board members. This was an information item and no action was required by the Governing Board. E. 2006 calendar of scheduled events. Director Welsh requested that staff
prepare a brief handout to be used at events to address questions regarding
taste and odor issues. This was an information item and no action was required
by the Governing Board. 8. NEW BUSINESS A. Director Doud said he would be attending the WESTCAS annual conference in San Diego next month. Director Doud made a motion, seconded by Director Welsh, that the Governing Board appoint Director Doud to make election decisions at the WESTCAS annual meeting. The motion carried. B. Consideration of scheduling the Board Budget Workshop on June 23, 2006 at
1:30 p.m. The date for the budget workshop was individually confirmed with all
Directors previously. This was an information item and no action was required by
the Governing Board. 9. REPORT OF SOUTH BAY IRRIGATION DISTRICT REPRESENTATIVE AND THE CITY OF NATIONAL CITY REPRESENTATIVE TO THE SAN DIEGO COUNTY WATER AUTHORITY Chair Pocklington reported that at tomorrow’s meeting the CWA Board would consider setting a public hearing on June 22, 2006 for supply and treatment rates and charges for fiscal year 2006-07 and calendar year 2007. He noted that MWD held a budget meeting, and they are on schedule for rate increases from three to five percent over the next eight years. The selection of auditing services for a three-year period was also up for approval. Another interesting item up for consideration was the payment of per diem for attendance at organized dinners and other similar events for about 17 different organizations. This item was discussed at length, and concern was expressed regarding the appropriateness of per diem payments for many of these events. The CWA Board will also consider adopting positions of support on legislative bills AB 2951 and opposition on SB 1242, SB 1317, AB 2397, and SB 1574. The Conservation Ad Hoc Committee is recommending the adjustment of the fiscal year 2006-07 operating budget by $1.3 million for conservation programs, primarily the phase-out of the single-family Ultra-Low-Flush-Toilet Incentive Program and concentration on outdoor programs where most of the water is being used. Chair Pocklington reported that the break in Pipeline 3 a week ago Monday will cost $850,000 to repair and will take about three weeks. Operations Manager Rogers reported that originally they thought there were two breaks; however, after looking at it, there are eight places that are suspect, so they are putting in a 30-inch bypass around it. The Authority was taking Surface Storage Operating Agreement (SSOA) water during that time, we still had about 1,000 acre-feet to take, and that program runs out the end of May. We requested that CWA ask MWD if we could take the water past the program end date, and they were in agreement with that. So, we will be able to take the 1,000 acre-feet after the main is replaced in June, which is very good news for us. The CWA Board will hear an update on desalination at the Encina Power Station and hold a closed session on real property negotiation regarding that site. Under Engineering and Operations, the Board will consider a contract for security services for the Lake Hodges Pump Station and the Olivenhain-Hodges Pumped Storage Projects; partnering support and evaluation of the contractor selection process at the Twin Oaks Valley Water Treatment Plant project; amendment of the consultant contract for the Lake Hodges Pump Station and Olivenhain-Hodges pumped storage project; and the acquisition of property and easement rights from the City of San Diego for $440,000 to construct and operate the San Vicente Surge Control Facility. There will be a report on MWD’s proposed $1.79 billion budget for fiscal year 2006-07; consideration of the prepayment of $2.032 million of CWA’s Quantification Settlement Agreement JPA obligation for calendar years 2006-2008; and an overview of the Colorado River Basin Water Report. 10. APPROVAL OF DIRECTORS’ ATTENDANCE AT MEETINGS AND FUTURE AGENDA ITEMS A. Director Doud made a motion, seconded by Director Pocklington, that the Governing Board approve per diem for Directors who attended the Unified Port of San Diego South Bay Power Plant Town Hall meeting at the City of Chula Vista Council Chambers on Wednesday, May 3, 2006 at 6:00 p.m. The motion carried. B. Director Pocklington made a motion, seconded by Director Welsh, that the Governing Board approve per diem for Director Doud to attend the Special District and Local Government Institute Administration Seminar at the Bahia Hotel, San Diego on June 1-3, 2006. The motion carried. C. Water Education Foundation Conference – Developing a Delta Vision: How to Connect the Dots – University of the Pacific, Stockton, CA – June 6-7, 2006. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board. D. WESTCAS Summer Conference – Kona Kai Resort, San Diego – June 14-16, 2006. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board. 11. REPORTS BY DIRECTORS ON EVENTS ATTENDED Chair Pocklington reported that the Cinco de Mayo event on April 30th was a
positive program, and attendees he spoke with were pleased with Sweetwater
Authority and the information distributed. Director Doud reported that he
received three compliments and heard no complaints. Director Alkire said that,
at one time, he saw 15-20 people standing around the water buffalo, people
appreciated that the water was cold, and they even ran out of cups before they
closed. Director Beauchamp said that the interactions were good, but that some
of the people with questions lived outside our district, and it was necessary to
determine district residents in order to distribute the spray nozzles. He spoke
with someone about reclaimed water, and the charts and maps available were
helpful. Director Morrison agreed that it was good to have the interaction with
people, and he suggested that having a descriptive map of the Authority’s
service area would be helpful. He said that the watershed map is very good, but
many people do not know if they are in our district or not, and a map would
help. He heard only one complaint from someone who wanted to know why they had
to pay so much for reliability of water, which he thought was an interesting
question. Chair Pocklington reported that the programs presented at the Joint Board
Meeting of May 5th were positive, he was pleased with the turnout, and he
believed it was one of the best joint board meetings we have had. Director Welsh
said that she comes away from those meetings every time very impressed with
Sweetwater Authority’s staff, and she was grateful for the kind of presenters we
had and the quality of work that is going on. Reporting on the ACWA Conference on May 9-12, Chair Pocklington said he was impressed with the information on solar energy and the Huell Howser programs. General Manager Bostad said that the Communications Section is currently reviewing the DVD programs on the Delta and the snow pack for possible use at community relations meetings. Director Beauchamp believes that these videos will be a very powerful way to present these issues to legislators. Director Doud said he attended the Federal Affairs Committee meeting at which Tom Donnelly, Executive Director of National Water Resources, reported that they are going to revitalize the Title 16 dollars. Most of the funds in this budget are going to the Department of Energy (DOE), and he suggested that we check to see if we can get grants from the DOE. He was also appointed to the subcommittee on Federal Affairs Projects of the Bureau of Reclamation and will be getting information on that from David Reynolds in Washington D.C. He said that ACWA is supporting HR 1190 (Hunter) and the Reservoir Intertie project. He gave a copy of the Army Corp of Engineers subcommittee survey to General Manager Bostad to have staff complete and return to David Reynolds. The Army Corps subcommittee was recently created to help ACWA focus on civil work programs and appropriations enhancements overall. Director Morrison said this was his first ACWA conference, and he commented that of all the various track programs available (such as Finance and Legal), programming for policy makers was lacking. Director Welsh said the presentations on the Bay Delta were outstanding, and there is a rethinking of whether or not the Delta can be maintained to the level of 10 years ago when the Bay Delta hearings were being held. She is concerned that there is so much development in such a dangerous area, considering the Katrina response. Chair Pocklington and Director Morrison commented further on remarks made at the Hans Doe Forum Breakfast regarding the levee issues. Director Alkire reported on a presentation he attended put on by Southern California Gas concerning the use of natural gas engines and electric motors coupled to a pump for use during peak electric hours to assist the electric company. This could also provide a back-up system during a blackout. Perhaps, if the General Manager thinks this is something Sweetwater would want to get involved in, a briefing could be provided. Director Alkire reported on the ACWA-JPIA sessions he attended at ACWA. The Executive Committee approved a 10 percent cut in Workers Compensation rates effective July 1, 2006. JPIA reported that other organizations are aggressively seeking new customers by offering new programs with competitive rates that are probably not sustainable. JPIA offers training that is not available with the other organizations. He pointed out a letter received from the JPIA senior risk management consultant regarding field ergonomics training and a risk assessment follow-up provided to Sweetwater Authority, which would have cost about $1,625 if done by a private consultant. An additional benefit is that JPIA training is targeted toward the needs and hazard exposures of water utility employees. The JPIA consultant was very impressed with how the Authority conducts accident investigations to determine causes and implements corrective actions to prevent recurrence. In the JPIA Safety Award Program this year, of the 22 award recipients, only 8 agencies were involved. The JPIA consultant said that Sweetwater Authority employees are some of the most innovative and inventive in the JPIA membership, and Director Alkire suggested that we be more proactive in helping our employees apply in order to have a chance at this award. The JPIA Executive Committee election winners were incumbents Tom Cuquet, South Sutter Water District; Lou Reinkens, Tahoe City Public Utility District; and Melody Henriques-McDonald; along with Jerry Gladbach, Castaic Lake Water Agency. Chair Pocklington asked Legal Counsel Cowett to address the Proposition 218
issue. Mr. Cowett reported that the issue before the court is whether
Proposition 218 applies to the increase in water rates. Under Irrigation
District Law, a public hearing is not necessary, but this proposition changes
this format by providing the need to send notice to all property owners within
your district at least 45 days prior to holding a public hearing on water rates.
The Court of Appeals opinion decided this was inapplicable. The Supreme Court
decision may dictate a change in the process, and one consideration is the
procedure to follow when issuing debt. General Manager Bostad reiterated that,
in order to follow the law, Proposition 218 noticing requirements will be
followed in the budget procedure if a rate increase is to be considered, and we
will work closely with legal counsel to assure that we stay in compliance.
Counsel Cowett will continue to monitor court actions on this issue and advise
accordingly. Director Beauchamp reported on the May 16th Council of Water Utilities meeting presentation, how the retirement of baby boomers is affecting the world, and that he was impressed to see a training program to prepare for that. Director Morrison reported on the National City Chamber of Commerce meeting of May 17, 2006 and a presentation by Paradise Valley Hospital to build workforce housing and a three-bay senior complex on the site, which will be a very water-intensive project, possibly utilizing its own wells. Chair Pocklington said that Director Doud did a great job leading the CSDA, San Diego Chapter Quarterly Meeting on May 18th. He enjoyed visiting with Sweetwater’s scholarship winner and her parents and believed we were well-represented. Director Welsh said it is always a moving moment for her to see not just our recipient but the other outstanding young people who have a sense of making a difference. Director Doud said he was impressed that, after the evening was over, the students came to shake his hand and thank him. Director Welsh attended the Bonita Business and Professional Association meeting on May 23rd and reported that the program was on the San Diego Career Centers, which has a satellite office in the library building in Bonita. NOTE: Director Salas excused herself and left the meeting at 4:54 p.m. 12. BUDGET REPORT – INTERIM DIRECTOR OF FINANCE FARROW Interim Director of Finance Farrow reported that, with two periods left in the fiscal year, Water Sales are $204,233 over budget. Other Income is $22,299 under budget, reflecting cross-connection refunds for about three of the eight cycles. A negative should be seen in May as well, but this is offset by reduced expenses to the County. Interest Income is $275,486 over budget. Ms. Farrow noted that in the investment market, our short-term yields tend to be equal to the mid-term and long-term yield. There is a tendency to invest monies in three-month increments as opposed to tying it up. There is speculation that this is going to change in June when the Feds meet again and interest rates may actually dip a bit. Operating Expenses are $193,220 over budget, but again this is due to fuel and chemical costs. Compared to the budget, Operating Revenues and Expenses are right about where we are expected to be overall, and the next two months should show that we will meet the budget as planned. Capital Projects at this point are about 41 percent spent. 13. MANAGEMENT REPORT A. Report of Operations Manager Rogers: Operations Manager Rogers stated that his report was covered under the discussion of the Pipeline 3 break. B. Report of General Manager Bostad: General Manager Bostad reported that he had been selected to participate on a Groundwater Conjunctive Use Committee at CWA to recommend a particular conjunctive use project, either a combination or individual projects. Proposals are being considered from North Kern and other central valley projects, the possibility of Borrego Springs groundwater, and a couple of smaller projects in San Diego County. Recommendations will be coming through to CWA probably in the next month or so. Director Alkire inquired about reservoir levels following the recent storm. Operations Manager Rogers reported three-quarters of an inch at Loveland and one-half of an inch at Sweetwater. The negligible amount of runoff into Loveland was enough to offset the evaporation. General Manager Bostad also drew attention to the Monthly Report of Activities. 14. DIRECTORS’ COMMENTS Director Alkire informed the Board that he was going on vacation to Ohio for a family reunion and would return the evening of June 5th. Director Doud said that while visiting his son’s family in Apple Valley, his grandchildren saw his bottle of water. Since they all drink bottled water, when he filled his bottle from the tap, his granddaughter told him that no one drinks tap water, and they had bottled water in the refrigerator. He said he liked the tap water and was going to put it in the freezer for his drive back to Chula Vista. He also distributed a Daily Transcript news article about National City gearing up for major residential/commercial development of nearly 4,800 residential units and ultimately more than 10,000 units that could be constructed west of Interstate 805. Director Beauchamp said he forwarded information to the General Manager about a rare plant that has yet to be described botanically and would like to see if our vernal pool preserve at Sweetwater could save it from distinction, since it has virtually been wiped out in Mexico. General Manager Bostad said staff is checking with Fish and Wildlife and Fish and Game to get a read on that. Director Beauchamp also asked the Board to consider its participation and level of support in the Water Conservation Garden at Cuyamaca College outside of CWA to help develop the outdoor landscaping ethic. Past water conservation efforts were concentrated on indoor uses, and outdoor uses are the next large area to gain conservation savings. Chair Pocklington said this item could be referred to the Operations Committee. Director Pocklington commented that he participated in the walk over the Coronado Bridge this past weekend, and it was an enjoyable experience sponsored by the Navy. He added that he was leaving Friday to visit relatives in Houston. 15. CLOSED SESSION A t 5:09 p.m., in compliance with Government Code Section 54957, the Board recessed to convene in Closed Session to conference with Legal Counsel regarding a matter of public employee discipline/dismissal/release. Everyone left the Board Room, with the exception of the Board members, Management Team, Legal Counsel, Board Secretary, and Administrative Services Director. There were no minutes taken, and the session was not tape-recorded. At 5:15 p.m., Chair Pocklington declared the meeting to be in open session, and there was no reportable action. A t 5:15 p.m., in compliance with Government Code Section 54957.6, the Board recessed to convene in Closed Session to conference with Legal Counsel Cowett regarding labor negotiations. There were no minutes taken, and the session was not tape-recorded. NOTE: Director Morrison left the meeting at 5:30 p.m. NOTE: Director Welsh left the meeting at 5:48 p.m. At 6:17 p.m., Chair Pocklington declared the meeting to be in open session, and there was no reportable action. 16. ADJOURNMENT With no further business before the Board, Chair Pocklington adjourned the
meeting at 6:17 p.m., to the hour of 6:00 p.m. on June 14, 2006.
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