minutes

Regular Meeting

Governing Board of Sweetwater Authority

June 13, 2007

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, June 13, 2007, 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, 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, Jack Adam, Rick Alexander, Kevin Kasner, Sue Mosburg, Bill Olson, Jim Smyth, Don Thomson, and Tom Woodrum.

• 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.

ACTION CALENDAR ITEMS

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA

Director Welsh made a motion, seconded by Director Pocklington, that the request for waiver of the Board daily lodging and meal limit policy for Director Alkire’s attendance at the JPIA portion of the ACWA Spring Conference be added to the agenda as Item 8. D. The motion carried.

2. APPROVAL OF MINUTES

Director Doud made a motion, seconded by Director Thomas, that the Governing Board approve the minutes of the May 23, 2007 meeting. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve Warrants 110105 through 110360 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of June 4, 2007)

A. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board adopt Resolution 07-10 authorizing acceptance of funding for the Otay River Basin Brackish Groundwater Desalination Project Feasibility Study pursuant to the California Department of Water Resources 2006 Water Desalination Grants implemented under Chapter 6(a) of Proposition 50, and authorize the General Manager to sign the grant agreement. Director Pocklington inquired about the timeline for the process. Staff explained that the study must be completed within three years, and that determining a site will also be a part of the feasibility analysis. The motion carried.

Upon said motion the following resolution:

RESOLUTION 07-10

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY AUTHORIZING ACCEPTANCE OF FUNDING FOR THE OTAY RIVER BASIN BRACKISH GROUNDWATER DESALINATION PROJECT FEASIBILITY STUDY PURSUANT TO THE CALIFORNIA DEPARTMENT OF WATER RESOURCES 2006 WATER DESALINATION GRANTS IMPLEMENTED UNDER CHAPTER (6)a OF PROPOSITION 50

was passed and adopted by the following vote to wit:

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

*Note: Director Morrison entered the meeting at 6:06 p.m.

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

5. OPERATIONS COMMITTEE (Meeting of June 6, 2007)

A. Director Doud made a motion, seconded by Director Welsh, that the Governing Board confirm the Committee’s direction to the General Manager to place a “no” vote against acceptance of the revised BMP 11 on behalf of the Governing Board prior to June 13, due to the fact that the California Urban Water Conservation Council’s Plenary Committee needs all water agency votes to be submitted by June 13, which is the same date as the Sweetwater Authority Board meeting. Director Doud reported that the Committee discussed staff’s concerns with the proposed changes to BMP 11, their effects on rate setting, and the possible loss of local decision-making ability. The Committee also discussed the Authority’s many historic and ongoing efforts to protect its customers from drought conditions. In response to Director Welsh’s inquiry as to the timeline and history of this issue, General Manager Bostad explained that, although the California Urban Water Conservation Council’s (CUWCC) proposal is an attempt to do the right thing, he believes the proposed mechanism is incorrect. The Authority was one of 11 local agencies opposing and four in favor of the proposed revision. However, an update to today’s statewide vote of the participating agencies in the CUWCC indicated that the revision passed. Director Pocklington inquired about the consequences of the vote, and General Manager Bostad explained that grant funding provided through the state may require compliance with these Best Management Practices. He added that one of the most important conservation mechanisms is to meter services and charge for the water usage based upon measurement in order to encourage conservation. He pointed out that Assembly Member Mary Salas is moving forward with a bill that would require districts to have a conservation rate structure, and that there is controversy as to having a new order from Sacramento on the local rate setting process. The motion carried.

B. Curtailment of water deliveries to Southern California. This was an information item and no action was required by the Governing Board.

6. ACWA – CALL FOR NOMINATIONS FOR REGION 10 LEADERSHIP

None of the Directors expressed interest in nomination to the ACWA Region 10 Board at this time. No action was taken by the Board.

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

Director Beauchamp reported that, at today’s Board meeting, the strategic plan was approved as well as a five percent increase in dues, with Padre Dam MWD opposing the increase. There was discussion on how to increase parking spaces to accommodate increased attendance. Padre Dam MWD’s membership in the Garden was discussed, and the District’s Board has delayed its vote on that for 60 days. The Garden’s Board has requested a community participation grant of $20,330 from the County Board of Supervisors to help the Garden pay for the reworking of the drip irrigation and irrigation controller displays, and Director Beauchamp received concurrence from the Authority’s Board to request support from Supervisor Greg Cox. The Garden is currently working to get the Metropolitan Water District to become a member.

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

A. Council of Water Utilities, San Diego County Meeting, StoneRidge Country Club – Tuesday, June 19, 2007, 7:15 a.m. – Program: “Sacramento – Action, Action, Action?” presented by Steve Macaulay, Executive Director, California Urban Water Agencies. Directors wishing to attend this pre-approved meeting will contact the Secretary. No action was required by the Governing Board.

B. Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve per diem for Director Beauchamp’s attendance at the San Diego County Taxpayers Association Golden Fleece/Watchdog Dinner on May 31, 2007. The motion carried.

C. Water Education Foundation Delta Vision Workshop – Friday, July 27, 2007, at the Fresno Convention and Entertainment Center. Directors wishing to attend this pre-approved meeting will contact the Secretary. No action was required by the Governing Board.

D. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve a waiver of the Board lodging and meal limit policy for Director Alkire’s attendance at the JPIA portion of the ACWA Spring Conference. The motion carried.

9. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Thomas reported on her attendance at the CSDA Leadership Academy on the Board’s Role in Finance and Fiscal Accountability on May 31st. She stated that the workshop covered areas such as auditing, budget preparation, and ethical ramifications. She added that this workshop was well-timed since it gave her some clarification in preparation for her first budget review as a Director of Sweetwater Authority. She noted that Director of Finance Farrow also reviewed the Authority’s audit and budget from last year with her, and that the high quality and clarity of the Authority’s reports were very impressive in comparison to other agencies represented at the workshop.

Director Morrison reported on the San Diego County Taxpayers Association Golden Fleece/Watchdog Dinner on May 31st. He noted that the CWA was nominated for the electricity/water transfer at Lake Hodges and that Otay received the Watchdog Award. Director Beauchamp also attended and noted that the Airport Authority received the Golden Fleece Award.

Director Beauchamp reported on the South County Economic Development Council meeting held June 5th, stating that there was an interesting presentation by Ms. Charlene Zettel, Executive Committee Member of the San Diego County Regional Airport Authority. He reported that they are finally going to support the cross-border terminal so that Rodriguez Field can be used by parking on the U.S. side and going through special customs to use Tijuana’s Rodriguez International Airport facility in a more beneficial way. He stated that this will take some pressure off San Diego International Airport.

Director Morrison reported on the Water Education Foundation Bay Delta Tour on June 6-8, stating that it was an interesting time to be there, as the pumps were shut down and they were able to see things first-hand. The issue at hand is that the pumps were designed for high-end crops, but are basically being used for feed corn/low-end crops, and this puts a different value on the land and its usefulness now versus in the past. He believes that shutting down the water pumps is more political rather than effective. He said that the pumps are constantly sampled, and that only a few of the millions of Delta smelt traveling through them have been trapped. The environmentalists’ concern is for immediate issues rather than long-range planning.

Director Alkire attended the Bay Delta tour as well and added that he understands that the smelt are clustering inland by the pumps because of a cold spring and that they will swim out to the ocean when it gets warm. The Delta is in great trouble and, as he already knew, the tour confirmed that desalination, something the Authority has been doing for many years, is very important. He added that he had lunch with two representatives from the USGS on the tour who praised General Manager Bostad on his participation in the recent workshop at the ACWA Conference. Legal Counsel Cowett added that the state court decision where the judge shut down the operation has been stayed by a federal court judge pending appeal. The agencies have been directed to come up with a plan by July 2nd, but they are having trouble getting this plan together. The California Department of Fish and Game is holding up the plan at this point. With respect to the smelt, the problem this year is that so many of them were killed off that there are very few fish left, and the situation has become more critical than in the past. He believes that this court action is politically driven.

Director Welsh addressed issues raised at the California Water Law and Policy Conference on June 12th where a comment was made regarding land use around the Delta and the greater chance of failure and vulnerability. A powerful presentation was given on global warming showing polar bears being killed off. Her concern, whether speaking to Delta smelt or polar bears, is that a means to resolve these issues cannot be established. Director Doud attended the conference as well and added that global warming was the hottest discussion impacting water quality, supplies, etc. Lester Snow, the keynote speaker, addressed Water and Flood Management. Recent floods have shown sea levels reaching to the top of the levies in the San Francisco area. If the sea level becomes higher, this could cause flooding of the sewage distribution system and the treatment plants in San Francisco, so this is a great concern. Mr. Snow and the Department of Water Resources will be rewriting the CALFED EIR on the pumps. East Bay Municipal Utility District is seeking voluntary water rationing for their 1.3 million customers for the first time in fifteen years. The Pacific Water Conservation measure proposes to include reducing irrigation of golf courses, cemeteries, parks, and watering yards and plants to no more than three times per week (never during daylight hours), the use of commercial car washes, adjusting sprinklers to ensure water does not run on hard surfaces, and the repair of leaking plumbing.

10. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Mr. Rogers reported that he received an unannounced visit this afternoon from Peter Kuchinsky, the JPIA Regional Representative for Safety. Mr. Kuchinsky stated that the Authority’s safety program was second to none, that our plan to address safety issues (peer reviews, documentation, etc.) is a model in how to run an effective safety program for all the other agencies he investigates, and when he sees an issue at another agency, his standard response is to have them contact the Authority. Mr. Rogers gave credit to Al Sorensen, who started the Authority’s safety program in 1977, and the reason we have established the Big Al Award for safety. He complimented Sue Mosburg and the Safety Section for doing a great job. The Board suggested that this feedback be made public at JPIA meetings.

In light of the eight-year Colorado River drought and the worst snow melt in California in memory, Mr. Rogers asked Engineer Jack Adam to give a report on the Authority’s status of water supply. Mr. Adam reported that, for the fiscal year to date through the end of May, we have received 6.83 inches of rainfall at Sweetwater Reservoir. The 119-year average is 11.26 inches. We are slightly above 50 percent of our average rainfall. There have only been 20 years in the 119 years on record where we have had less rainfall than received this year. To date, Loveland Reservoir has had 8.79 inches of rain, slightly above 50 percent of the 64-year average of 15.2 inches through January 2007. There have only been seven years on record where we’ve received less rainfall than this year. Through May 2007, Sweetwater Reservoir received approximately 1,088 acre-feet of runoff this fiscal year, which is about 27 percent of our 50-year average. Loveland has received 1,461 acre-feet of runoff, or 15 percent of the 50-year rolling average. Total system storage is approximately 50 percent of the 28,000 acre-feet capacity at Sweetwater Reservoir, approximately 70 percent of that water is in MWD’s Surface Storage Operating Account (SSOA), and only a little over 450 acre-feet of local water is available in the reservoir today. Loveland Reservoir has 6,700 acre-feet of local water available. Mr. Adam explained MWD’s Direct Replenishment Program and the SSOA, the use of that water in a drought emergency, and its effect on our emergency storage. Mr. Adam then outlined planned projections for the source of supply in FY 2007-08. General Manager Bostad pointed out the significance and complexity of the water plan for the next year, which has a major impact on the Authority’s budget plan.

B. Report of General Manager Bostad: Mr. Bostad informed the Board that the change in pumping to the Delta has initiated a lot of concern in California, and in a meeting with CWA staff, he indicated concern about CWA’s ability to deliver untreated water to the Authority next year. As a result, developing a potential storage program in Sweetwater Reservoir and taking treated water at untreated prices was discussed with CWA. He stated that this issue will be brought back to the Board in the future for discussion. In light of another drought year, they are looking at creative alternatives to get water down here. CWA does not have a storage agreement with the Authority, and if they want to store and treat it as carryover water, the MWD agreement will be used as a standard and a starting point. Mr. Bostad added that a resolution to the CALTRANS case could be reached by the end of the week, and a closed session presentation may be made to the Board at its next meeting.

11. DIRECTORS’ COMMENTS

Director Thomas recited a poem titled “Your Flag and My Flag” by Wilbur D. Nesbit (1871-1929) in honor of Flag Day tomorrow.

Director Welsh commented that she was intrigued by the selection of Timothy Quinn as the new Executive Director of ACWA.

Director Doud commented that Lester Snow informed him that Steve Hall’s physical condition is deteriorating.

Director Pocklington commented that he spent the last two days up at MWD, and that they are very concerned about the pumps, the Delta, and the drought. We don’t want to talk about conservation just for conservation sake, but at the same time talk about why the pumps are being shut down and our concern about the Delta, and get the public involved. He believes that MWD will become much more directly involved and take a more active role. A workshop will be held in July on this subject.

Chair Beauchamp shared a letter he sent out on his personal letterhead stating his involvement with Sweetwater Authority in support of Patrick Kruer’s reappointment as Coastal Commissioner by the Speaker of the Assembly. He reminded the Board of the Budget Workshop tomorrow at 1:30, the WESTCAS Conference next week, and the Sweetwater Authority Recreation Association picnic on Saturday, June 23rd.

12. CLOSED SESSION
There was none.

13. ADJOURNMENT

With no further business before the Board, Chair Beauchamp adjourned the meeting at 7:41 p.m. to the hour of 1:30 p.m. on June 14, 2007.

R. Mitchel Beauchamp, Chair

Attest:

Rita Schoonderwoerd, Board Secretary