minutes

Regular Meeting

Governing Board of Sweetwater Authority

June 9, 2004

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, June 9, 2004, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Doud called the meeting to order at 6:00 p.m.

· ROLL CALL

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

Directors Absent: Inzunza.

Others Present: General Manager Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Avery, and Board Secretary Farpón-Friedman. Staff members Mary Ann Mann, Bill Olson, Jim Smyth, and Tom Woodrum.

· PLEDGE OF ALLEGIANCE TO THE FLAG
Director 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 for comment.

· CHAIR 'S PRESENTATION
Channel 9 News Video on Desalination.

Chair Doud said he had recorded a 5-minute video of a short presentation by Channel 9 regarding a new desalination technique that is being developed at UCSD. The video was viewed and commented by members of the Board and Management. General Manager Bostad said that staff would evaluate this new technique, which does not use membranes.

NOTE: Director Inzunza entered the meeting at 6:04 p.m.

ACTION CALENDAR ITEMS

1. PUBLIC HEARING (Government Section 54954.3)

Chair Doud stated that the Governing Board of Sweetwater Authority was holding a Public Hearing to give the opportunity for members of the public to address the board concerning the Notice of Intent to Adopt a Mitigated Negative Declaration for the Upper Sweetwater Habitat Management Program (HMP). General Manager Bostad gave a brief report on the project.

Chair Doud opened the Public Hearing at 6:08 p.m. to receive comments from the public. There were no members of the public in attendance to provide comments.

Chair Doud closed the Public Hearing at 6:08 p.m.

2. ADOPTION OF RESOLUTION 04-11

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

RESOLUTION 04-11

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
ACCEPTING AS ADEQUATE AND ADOPTING THE MITIGATED NEGATIVE DECLARATION FOR THE UPPER SWEETWATER HABITAT MANAGEMENT PROGRAM (HMP) AND DIRECTING THAT A NOTICE OF DETERMINATION BE FILED

was passed and adopted by the following vote to wit:

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

3. PRESENTATION BY COMMUNICATIONS DIRECTOR PAULA ROBERTS

General Manager Bostad said that Communications Director Roberts had scheduled this presentation for the Board meeting of June 23rd, but this meeting was moved to June 30th, and the report is to be mailed by that date. Therefore, this presentation would provide the Board information on the concept of the report rather than on the final product.

Ms. Roberts said that the intention of this publication is very good, but sometimes the execution is difficult because there is so much regulation attached to it. The goal of the publication is to comply with the regulations of both the State and Federal Government. We, as an agency, try to respond to the intent of the regulations as well as the letter of the law and, in doing so, we want to make the public feel that we are protecting their water supply. This publication goes to all of our customers rather than just to those who receive bills. Staff wants to make sure that Sweetwater Authority can share some of its messages with the customers and that the customers feel it is worth their time to read the report.

Ms. Roberts said that we have been doing this publication since 1991 as a California requirement. The State calls it the Annual Water Quality Report. The Federal requirement, which came in California in 2000, calls it a Consumer Confidence Report. We will continue to call it the Annual Water Quality Report. Consumer advocacy groups have been involved in establishing these regulations and they publish report cards of how water agencies are complying. Some of the recommendations they have issued are that consumers be involved in the design, that it be user friendly and readable, that it be delivered by-postal patron, and that advisories and translations be made available in other languages.

The consumer advocacy report card objected to the statement "your water is safe" shown in the front and center of our report because they felt that that vulnerable populations, such as those who are getting chemotherapy or are immune compromised, were not being protected. Ms. Roberts explained that we are not required to report on contaminants that are not found in our water, but if we found contaminants over certain levels, we are required to describe the possible effects of those contaminants. We are also required to disclose any violations and the name of a specific contact person for consumers. Director of Water Quality Mann was listed last year as our contact person for people who want to protect their source water, and she received no contacts.

Ms. Roberts displayed a report and noted how it covers all the regulated information and includes the map of the watershed, information about the water contaminants, source water information, etc. She remarked that it is text heavy and maybe intimidating from the viewpoint of a consumer. She talked about the tables that will be included in the report, as well as some articles regarding the monitoring and studies currently in progress and what we hope to gain from them. Also included in the report is information about the change in treatment at the wells, why chloramination is good for our customers, and future treatment options for the Perdue Plant. Our key messages will be that Sweetwater Authority is complying with regulations, and that the water is safe for most people. This Annual Water Quality Report should be mailed to our customers at the end of the month or the very beginning of July.

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

There were none.

5. APPROVAL OF MINUTES

Director Pocklington made a motion, seconded by Director Welsh, that the Board approve the minutes of the Adjourned Personnel Workshop meeting of May 21, 2004 and of the Regular Meeting of May 26, 2004. The motion carried.

6. APPROVAL OF DEMANDS AND WARRANTS

Director Reynolds made a motion, seconded by Director Alkire, that the Board approve Warrants 94645 through 94835 including all voided checks. The motion carried.

7. FINANCE AND PERSONNEL COMMITTEE (Meeting of June 1, 2004)

A. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board approve the 2004-05 membership renewal in the American Water Works Association Research Foundation in the amount of $7,968, which is included in the proposed 2004-05 Budget. The motion carried.

B. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board approve the 2004-05 membership renewal in the Urban Water Institute in the amount of $1,500, which is included in the proposed 2004-05 Budget. The motion carried.

C. Further review of FY 2004-05 Budget. This was an information item and no action was required by the Governing Board.

8. OPERATIONS COMMITTEE (Meeting of June 1, 2004)

A. Director Beauchamp made a motion, seconded by Director Alkire, that the Governing Board award a contract for the air conditioning unit replacement to ASI Hastings, Inc., 1250 Greenfield Drive, El Cajon, CA 92021, in the amount of $18,267, and approve additional funding in the amount of $25,000 from the Unallocated Reserve Fund. The motion carried.

B. Director Beauchamp made a motion, seconded by Director Welsh, that the Governing Board approve the installation of the 80 feet of 8-inch pipeline for the Highland Park Homes water main extension and additional funding in the amount of $25,000 from the Repair and Replacement Reserve Fund. The motion carried.

C. Director Beauchamp made a motion, seconded by Director Welsh, that the Governing Board approve the County of San Diego Sheriff's Department's request to utilize the Administration Building for its emergency meetings, subject to the execution of this agreement.

D. Proposed designation of critical habitat for the Arroyo Toad. This was an information item and no action was required by the Governing Board.

9. FINANCE AND PERSONNEL COMMITTTEE (Meeting of June 7, 2004)

A. Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve awarding a contract to Ortega & Konrad LLP to perform auditing services for Fiscal Year 2003-04 in the amount of $12,500 and for Fiscal Year 2004-05 in the amount of $13,000. The motion carried.

B. Discussion of San Diego County Water Authority Preferred Master Plan Rate Case. This as an information item and no action was required by the Governing Board.

C. Director Welsh made a motion, seconded by Director Doud, that the preliminary budget for Fiscal Year 2004-05, including a 5.9 rate increase beginning January 1, 2005, be presented to the Governing Board at its Budget Workshop scheduled on June 11, 2004, at 3:00 p.m. The motion carried.

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

A. Council of Water Utilities Breakfast - Tuesday, June 15, 2004 - Stoneridge Country Club - 7:15 - 8:45 a.m. All Directors will be attending this pre-approved event. No action was required by the Governing Board.

B. National Water Resources Association (NWRA) - 21st Western Water Seminar July 28-30, 2004 - Hyatt Tamaya Resort and Spa - Santa Ana Pueblo, New Mexico. Directors Reynolds and Welsh will be attending this pre-approved event. No action was required by the Governing Board.

11. REPORT OF TREASURER - WANDA AVERY

Ms. Avery reported that the interest rate for a 13-month Certificate of Deposit was 2.20 percent and 3 percent for a three-year treasury note.

12. MANAGEMENT REPORT

A. Report of Rainfall and Reservoir Levels - Operations Manager Rogers: Operations Manager Rogers reported that staff at the Perdue Treatment Plant have been doing some studies over the last couple of months to find new technologies to meet the regulations that will be coming into place in 2007, and the pilot tests were completed at the end of May. By the end of this month we should have a recommendation from the peer group review, and it looks like we may be able to save many millions of dollars over the next few years. He also reported that staff from the Water Quality and Engineering Departments would be meeting tomorrow with Montgomery Watson Harza to present them with the results of our internal evaluation. Montgomery will make a recommendation to us next week. The week after that, we will have a peer review with three outside consultants that will be looking for reasons why Montgomery Watson Harza's recommendation will not work.

B. Report of General Manager Bostad: Mr. Bostad said that Management wants to make sure that the new technology is evaluated very carefully. He added that the internal evaluation has allowed us to consider a new capability and not have to spend up to $40 million.

He mentioned he had received a letter from Harold Ball thanking us for the tour of our facilities that was recently provided to the Helix Board. Mr. Ball stated that this tour gave his Board some additional insight into what Sweetwater Authority is doing. General Manager Bostad believes that the tour was a valuable effort.
He informed the Board that the offices would not be closing on Friday, and that staff had been given the option to take paid time off if they so desired in remembrance of former President Reagan.

13. DIRECTORS' COMMENTS

Director Alkire said he had completed the last two sessions of the CSDA Governance Series in Sacramento. The first part was on Finance and the second part was on Human Resources. He said it was worthwhile.

Chair Doud said that he had attended the Mayor's First Friday Breakfast on Friday. There was a lady there from Greg Cox's office in charge of the Aging and Independence Services. These services have a 1-800 number to assist senior citizens in directing them to the right place when they have a problem. They had some magnets for the refrigerator with that information, which he found out had been made by his daughter.

14. CLOSED SESSION

At 6:42 p.m., in compliance with Government Code Section 54956.9, the Board recessed to convene in Closed Session to conference with Legal Counsel regarding anticipated litigation, Government Code Section 54956.9 (b), and pending litigation, Government Code Section 54956.9 (b) and (c). There were no minutes taken, and the session was not tape-recorded.

At 7:28 p.m., Chair Doud declared the meeting to be in open session. He reported that the Governing Board had directed Legal Counsel and Management to submit a letter to the County of San Diego to include comments from the Board regarding the Steele Canyon project.

15. ADJOURNMENT

With no further business before the Board, Chair Doud adjourned the meeting at 7:29 p.m., to the hour of 3:00 p.m., on June 11, 2004.