minutes

Regular Meeting

Governing Board of Sweetwater Authority

May 27, 2008

The Governing Board of Sweetwater Authority held a regular meeting on Tuesday, May 27, 2008, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Beauchamp called the meeting to order at 4:00 p.m.

• ROLL CALL

Directors Present: Alkire, Beauchamp, Doud, *Morrison, Pocklington, Thomas and Welsh

Directors Absent: None

Others Present: General Manager Rogers, Operations Manager Smyth, Legal Counsel Cowett, Treasurer Farrow, and Board Secretary Schoonderwoerd. Staff members: Jack Adam, Rick Alexander
Leslie Filippi, Sue Mosburg, George Silva, Don Thomson, and Tom Woodrum. Also present: Lin Wurbs and Frank McKenna

• PLEDGE OF ALLEGIANCE TO THE FLAG
Chair Beauchamp 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

Chair Beauchamp introduced and congratulated Mr. Frank McKenna, the Authority’s district winner of the 5th Annual California Friendly Landscape Contest. The contest is sponsored by the Water Conservation Garden and its member agencies. The contest celebrates water conservation and was developed to reward homeowners who have explored the beauty of California friendly plants and installed beautiful water-wise landscape. This effort helps to conserve San Diego’s water supply and leads to lower water bills. Up to 50-70 percent of household water in San Diego County is used outdoors. He presented Mr. McKenna with a $250 gift certificate for Home Depot and shared photos of his landscaping. Mr. McKenna said that his inspiration came from Joyce Kilmer’s beautiful poem, Trees, and that he appreciated all of the help he received from Hunter’s Nursery. He thanked the Board and invited them to see the landscaping at his home near Hilltop High School. Mr. McKenna will be given a placard for his yard recognizing the award.

ACTION CALENDAR ITEMS

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA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

2. APPROVAL OF MINUTES

Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve the minutes of the May 14, 2008 meeting. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Pocklington, that the Governing Board approve Warrants 114328 through 114478 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of May 19, 2008)

A. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board appoint Mark Rogers as the Alternate Director for ACWA/JPIA. The motion carried.

B. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board appoint Mark Rogers as the Alternate Delegate for the NWRA Municipal Caucus. The motion carried.

C. Continuation of FY 2008-09 Budget review. This was an information item and no action was required by the Governing Board.

* Note: Director Morrison entered the meeting at 4:10 p.m.

5. OPERATIONS COMMITTEE (Meeting of May 21, 2008)

A. Director Doud made a motion, seconded by Director Thomas, that the Governing Board approve the remote service connection to the water main at 1182 First Avenue, Chula Vista, with the understanding that the property owner will be responsible for all fees and deposits associated with the remote service. The motion carried.

B. Sweetwater Dam South Spillway Improvement Studies. Director of Engineering Adam provided a brief review of the Sweetwater Dam South Spillway Improvement Studies. The Probable Maximum Flood (PMF) Study concluded that there are modifications that could be made to the other portions of the dam, although there is nothing that could be done at the south spillway to significantly reduce the PMF overtopping. Therefore, staff has directed its consultant to prepare a report summarizing these results for the California Division of Safety of Dams, and to state that the Authority plans to move forward with the repairs to the south spillway. This was an information item and no action was required by the Governing Board.

C. Discussion of letter of intent between Sweetwater Authority and Chula Vista Redevelopment Agency. General Manager Rogers stated that the City of Chula Vista and the County continue to be very interested in acquiring the Authority’s Administrative Office property for expansion of the County offices. He reiterated that relocation would have to be at no cost to the Authority. Discussion followed regarding parking, security issues, alternative location options, ownership, accessibility, and customer traffic. Director Doud noted that we are not in negotiations; rather in discussions to explore options. Director Pocklington commented that the Authority’s 25 percent figure for walk-in payments may be changing in the future due to younger customers using other payment options. Director Morrison added that, with the lack of online payment options, his Sweetwater Authority payment is often the only check he writes, and this could affect foot traffic at the facility. Due to the critical nature of the issue, Chair Beauchamp wanted to establish an ad hoc committee to be present during these exploratory discussions. Director Pocklington said he would like to keep this on a staff level as much as possible until the discussions become more sensitive and serious, and he requested that this be agendized for discussion through the Operations Committee. This was an information item and no action was required by the Governing Board.

D. Director Doud made a motion, seconded by Director Thomas, that the Governing Board authorize the General Manager to negotiate a revocable license agreement with the County of San Diego to construct, operate and maintain a hiking and equestrian trail on the south side of the Sweetwater Reservoir. The final agreement will be executed by Board resolution upon completion. Chair Beauchamp expressed concern for this type of activity being outside the scope of what the Authority does or should designate money for, that we don’t have the budget for it, and should be cautious about access to the reservoirs. Discussion followed regarding funding for recreation, especially in light of the existing costs associated with the quagga mussel problems. The Board agreed that negotiation for the updated agreement should move forward, with the understanding that the County be responsible for complying with the new standards. The motion carried.

6. NEW BUSINESS
There was none.

7. 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 two items of note addressed at the May 22nd CWA Board meeting. The Board adopted a resolution setting a public hearing on June 26, 2008, at 9:00 a.m., to receive comments regarding CWA’s calendar year 2009 rates and charges and the annual standby availability charge. A special meeting of the Administrative and Finance Committee will be held on June 12th at 1:30 p.m. regarding mid-term budget review and 2009 rates and charges. He requested that the General Manager and Director of Finance attend and invited any directors who had the time to attend as well. The second item of interest was a request for MWD to set formal terms and conditions for Lakeside Water District’s proposed Erreca annexation to acquire a backup water source for their fire protection. The Board requested additional information from Lakeside Water District at the June 26th meeting and action on this item was continued to the July 24th Board meeting. Director Pocklington suggested that CWA consider a policy that, after reaching a certain point, there will be no more annexations unless it is an emergency.

8. 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 Chair Beauchamp’s attendance at the South Bay Irrigation District Board meeting of May 19, 2008 – Program: 2008 San Diego County Water Authority Water Supply Outlook. The motion carried.

B. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve per diem for Chair Beauchamp’s attendance at the San Diego County Taxpayers Association Golden Fleece/Watchdog Dinner on May 29, 2008. The motion carried.

C. Water Education Foundation Hetch Hetchy Tour – July 23-25, 2008, San Mateo, CA. (conflict with July 23rd Board meeting). Directors wishing to attend this pre-approved event will contact the secretary. No action was required by the Governing Board.

D. National Water Resources Association 25th Annual Western Water Seminar – July 28-30, 2008, Stevenson, Washington. Directors wishing to attend this pre-approved event will contact the secretary. No action was required by the Governing Board.

9. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Morrison reported that Captain Dixon Smith, USN, soon to become Admiral Smith, presented at the National City Chamber of Commerce meeting on May 15th. It was one of the liveliest, fascinating, and well received presentations. He did a great job on the topics of water and recycling and the tremendous amount of water savings the Navy has achieved over the past few years.

Director Pocklington attended the CSDA San Diego Chapter Quarterly Meeting on May 15th and reported that Director Doud did a great job presenting the scholarship awards.

Chair Beauchamp reported that he and Director Thomas attended the Water Conservation Garden “Ribbons Around the Garden” event on May 17th. It was a warm day, but it was well attended. The Authority’s landscape award winner was unable to be there, so he was invited to be honored at today’s Board meeting.

Chair Beauchamp reported that the Council of Water Utilities meeting on May 20th covered the quagga mussel and offered reinforcement for regulations. Director Thomas said Rick De Leon of MWD gave a superb presentation.

Director Pocklington reported that the Best Best & Krieger reception for the H20=Life Exhibition on May 22nd was an excellent introduction to the program. He looks forward to seeing the exhibit later in July. Chair Beauchamp added that it was well attended by the water community. Director Alkire found it interesting to discover that Kevin Kasner, the Authority’s Information Systems Supervisor, is also a civil engineer. Director Thomas noted that an impressive film was presented on water and its life, culture, history, and future. The exhibit is organized by a number of well-known science institutions and will be a great hands-on experience for all ages. Director Alkire added that Operations Manager Smyth took notes on the discount coupon program that may be offered to our customers to see the exhibit.

Director Doud attended the CSDA Membership Committee meeting on May 23rd in Sacramento, where the main focus was to review their strategy.

Director Thomas did not attend the Bonita Business and Professional Association meeting on May 27th.

10. REPORT OF TREASURER

Ms. Farrow gave the budget report as of April 30, 2008. Water Revenue was $2,032,000, or 6.4 percent, under budget. Operating Expenses were $3,076,000, or 11.1 percent, under budget. All of the departments have come in under budget. She added that there were two months where we were able to use local water from the reservoir and did not have to purchase it. That savings alone was $1.8 million. She noted how critical to the operating budget it is to have local water in the reservoirs.

11. MANAGEMENT REPORT

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

B. Report of General Manager Rogers: Mr. Rogers reported that there is an issue among many water agencies’ constituents about why they should have to save water when there are more meters still being added. CWA asked member agencies to determine the number of new services they have installed over the last 12 months and how much consumption that represents. Ms. Farrow provided a report indicating that for the last ten months we have had only 39 new services, which represents very little growth. This means the Authority is not asking its customers to save to pay for new services. Mr. Rogers reported that he and staff recently met with Helix Water District and Padre Dam MWD regarding the Natural Community Conservation Program (NCCP). The NCCP is at a point where it is ready for public viewing, and some of the agencies are taking a closer look to be sure they are getting exactly what they want to get from the program. From Sweetwater Authority’s standpoint, it is not so much about being able to build on our land; rather, about being able to operate our system the way we want, put water in the reservoir, and transfer water from Loveland to Sweetwater Reservoir. He spoke on the restrictions to adding imported water to the reservoir that theoretically will be taken care of in the NCCP. Staff then clarified several questions from Director Doud with regard to the Management Report in the board packet.

Note: Director Morrison left the meeting at 5:15 p.m.

12. DIRECTORS’ COMMENTS

Director Doud read a quote from Representative Jim Wright in The Coming Water Famine, 1966: “The crisis of our diminishing water resources is just as severe (if less obviously immediate) as any war time crisis we have ever faced. Our survival is just as much at stake as it was at the time of Pearl Harbor, or the Argonne, or Gettysburg, or Saratoga.”

Chair Beauchamp stated that the principal horticulturist at the Water Conservation Garden, Don Schultz, has been hired as an instructor by Cuyamaca College. He also expressed concern over the Authority’s flushing program. The primary reason is to purge the pipes of discolored water due to manganese and iron. However, he is concerned about continuing this program and the mixed message it will send to customers about water conservation. He requested that this issue be addressed through the Operations Committee.

13. CLOSED SESSION

At 5:21 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, the Management Team, Legal Counsel, and the Board Secretary. There were no minutes taken, and the session was not tape-recorded.

At 5:33 p.m., Chair Beauchamp declared the meeting to be in open session. No reportable action was taken by the Governing Board.

14. ADJOURNMENT

With no further business before the Board, Chair Beauchamp adjourned the meeting at 5:34 p.m.