minutes

Regular Meeting

Governing Board of Sweetwater Authority

June 30, 2004

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, June 30, 2004, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Doud called the meeting to order at 3:30 p.m.

· ROLL CALL

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

Directors Absent: None.

Others Present: General Manager Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Avery, and Board Secretary Farpón-Friedman. Staff members Hank Gaus, Sue King, Bill Olson, George Silva, Jim Smyth, Don Thomson, and Tom Woodrum.

· PLEDGE OF ALLEGIANCE TO THE FLAG
Director Inzunza 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
There was none.

ACTION CALENDAR ITEMS

1. REPORT ON WATER QUALITY RELATIVE TO PUBLIC HEALTH GOALS AND MAXIMUM CONTAMINANT LEVEL GOALS

Operations Manager Rogers introduced Don Thomson, Water Quality Superintendent, who would give a brief presentation on the report that we have to present every three years on water quality relative to public health goals.

Mr. Thomson said that there is a statute that requires that a Public Health Report be presented to the Board once every three years by July 1, 2004 and to the members of the public through a Public Hearing at a later date. The public health goals are contaminant limits that are set by the Office of Environmental Health Hazard Assessment based strictly on health effects. They are required to be set for every contaminant that has an MCL (Maximum Contaminant Level).

Mr. Thomson reported that the only three water quality constituents that exceeded the MCL were lead, copper, and coliform. The coliform is not a health hazard itself, but is an indicator of pathogenic organisms. The MCL goal for coliform is zero. In October of 2002 we had one hit of coliform out of 147 samples, which gave us a percentage 0.68 percent.

Every three years we are required to sample 50 homes for lead and copper. Out of the 50 samples that we took in August of 2002, one sample had five (5) parts per billion of lead and another sample had 501 parts per billion of copper, both of which were below the MCL of 15 parts per billion for lead 1,300 parts per billion for copper.

Mr. Thomson mentioned that there is an issue with perchlorate and the Colorado River sources, but he said that we have not detected any perchlorate in our system. He also talked about arsenic. He said that the Public Health Goal for California is four parts per trillion, which is well below any detection. The detection limit on arsenic for the laboratory is about two parts per billion. The Federal MCL for arsenic, which will come into effect in 2006, will be ten parts per billion. The State of California requires the Department of Health Services to set the MCL as close as economically and technologically feasible to the Public Health Goals, which is four parts per trillion. Mr. Thomson noted that arsenic at the Perdue Treatment Plant is removed in the coagulation/ sedimentation process. Mr. Thomson answered questions from some members of the Board.

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

General Manager Bostad pointed out that the adjournment time noted in the agenda should be changed as the next Board meeting will be held at 4:00 p.m., to give sufficient time to the Board to travel to the fishing facilities prior to the official opening.

3. APPROVAL OF MINUTES

Director Pocklington made a motion, seconded by Director Alkire, that the Board approve the minutes of the Regular Meeting of June 9, 2004 and Special Meeting of June 11, 2004. The motion carried.

4. APPROVAL OF DEMANDS AND WARRANTS

Director Reynolds made a motion, seconded by Director Beauchamp, that the Board approve Warrants 94836 through 95168 including all voided checks. The motion carried.

5. RECREATION COMMITTEE (Meeting of June 17, 2004)

A. Sweetwater Reservoir Shoreline Fishing Program. This was an information item and no action was required by the Governing Board. General Manager Bostad informed the Board that on July 6th staff would be providing a presentation on the fishing program to the Sweetwater Community Planning Group so that the local community has a better understanding of the program. On July 10th the fishing facility will open from 10 a.m. to 12:00 p.m. for staff, families, and the local neighborhood. Staff will send an invitation postcard to the neighbors to give them access to the facility that day. The press release announcing the opening on July 25th will be sent out in a week.

B. Loveland Reservoir Fishing Program. This was an information item and no action was required by the Governing Board.

6. FINANCE AND PERSONNEL COMMITTEE (Meeting of June 21, 2004)

A. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board approve the amendment to Policy 507 as presented by Management with minor modifications by the Committee. The motion carried.

B. Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve a variance to the Consultant Selection Policy and award a sole-source contract for this project in the amount of $27,000 to Whitmore & Associates Architects, Inc., 1262 Kettner Boulevard, San Diego, CA 92101. The motion carried.

C. Review of San Diego County Water Authority Member Agency Water Rates Report. This was an information item and no action was required by the Governing Board.

D. Reschedule meeting of July 5, 2004 due to conflict with Fourth of July Holiday. This was an information item and no action was required by the Governing Board.

E. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board approve the request to reinstate the Customer Service Office Supervisor position. The motion carried.

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 said that John Johnson, Joseph Parker and Bernie Rhinerson, all from the City of San Diego, have been reappointed and will be serving on the Board until March 7, 2010. Betty Ferguson from Vallecitos, who took Dale Mason's position, was sworn in and she will also serve until March 13, 2010. He briefly referred to AB 2279, which apparently has been defeated.

Director Pocklington updated the Board on some of the issues that were discussed and/or approved at the last CWA Board meeting. Two of those items were the approval of the Administration of the Project Labor Agreement and Construction Safety Support, and releasing the request for qualifications and begin the design-build-operate solicitation process of the Twin Oaks Valley Water Treatment Plant. They approved the multi-year mid-term budget and also the addition of $479 million to the master plan, which brings the capital improvement program up to $1.8 billion.

Mr. Valderrama reported on issues under the Administrative and Legal, Public Affairs, and Planning and Environmental Committees. He talked about AB 2243 that was signed by the Governor last Friday authorizing a City Council's elected official to sit on the CWA Board. Consequently, he assumes that Mayor Inzunza will probably appoint someone from the City Council to represent the City of National City on the CWA Board. He added that when he was appointed to the position, the Mayor informed him of his plan and he gladly accepted the position with that understanding. He added that there are no hurt feelings and he has six months left, as the official transition cannot take place until January 1, 2005. Director Inzunza said he appreciated Mr. Valderrama disclosing the discussion that they had when he made the nomination.

8. NEW BUSINESS

Director Beauchamp made a motion, seconded by Director Welsh, that the Governing Board approve the request from Fallbrook Public Utility District to adopt a resolution supporting HR 4389 Authorizing the Bureau of Reclamation to construct the Santa Margarita Conjunctive Use Project for Fallbrook Public Utility District and Camp Pendleton. The motion carried.

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

A. Water Education Foundation - 2004 Water Law & Policy Briefing - July 15-16, 2004, Hyatt Regency Islandia Hotel, Mission Bay, San Diego. Directors Doud, Pocklington and Welsh will be attending this pre-approved event. No action was required by the Governing Board.

B. Water Agency Association of San Diego County Quarterly Dinner meeting - Thursday, July 15, 2004 at the Doubletree Club Hotel, San Diego. Directors Alkire, Doud, Inzunza, Pocklington, Reynolds and Welsh will be attending this pre-approved event. No action was required by the Governing Board.

C. Council of Water Utilities, San Diego County Breakfast meeting - StoneRidge Country Club - Tuesday, July 20, 2004. All Directors will attend this pre-approved event. No action was required by the Governing Board.

D. Alpine Chamber of Commerce Sixth Annual An Evening with your Elected Representatives Friday, July 16, 2004. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve per diem for Directors who wish to attend this event. The motion carried.

E. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board approve per diem for Director Beauchamp's attendance at the Scholarship Award presentation at Sweetwater High School on June 14, 2004.The motion carried.

10. REPORT OF TREASURER - WANDA AVERY

Ms. Avery reported that interest rates went up a quarter percent.

11. BUDGET REPORT - DIRECTOR OF FINANCE GAUS

Director of Finance Gaus said that as of May 31st, the Water Sales are about $471,000 below and Other Income is $370,000 over what we had anticipated. Interest Income is $55,000 above. The Operating Expenses are under budget by approximately $1 million mainly due to the different programs we have been able to utilize to purchase water. Collectively, we had estimated a cash flow of $5.3 million and we have $6.3 million at this time. We had anticipated spending 80 percent of our budget, but we have only spent 45 percent.

12. MANAGEMENT REPORT

A. Report of Rainfall and Reservoir Levels - Operations Manager Rogers: Operations Manager Rogers provided further information to the Board on the incident of last Friday regarding a report that a person had drowned in the reservoir. The report indicates that some neighbors were sitting out on their deck, watched a woman go down to the edge of the reservoir, take off her sandals and dive in. One hour later, they reported to the police that a person might have drowned in the lake. About 45 minutes later the fire department found the woman sitting on her deck watching the activity. It turns out this person is a 28 year old retired Navy rescue swimmer who jumped in, swam across, jumped out, and ran home.

Report of General Manager Bostad: Mr. Bostad played a video of the ribbon cutting of the National City Wells Field. He also referred to the article on the Star News of Mr. Reynolds and the groundwater desalination plant. He noted that the report of activities for the month of May was included in the Board packet and offered to answer questions. He also reported that there is some progress on an authorization of $180,000 from Congress to continue efforts of the eco system restoration, and he said he would keep the Board up to date on this issue.

13. DIRECTORS' COMMENTS

Director Reynolds said he enjoyed the WESTCAS meeting, but was concerned by a statement by a CWA speaker that they were looking at putting their desalination plant in Mexico. It bothered him that we cannot find a place here in the United States.

Director Alkire said he enjoyed his vacation very much and was distressed over the first email he opened from Mark on the drowning at Sweetwater Reservoir. He wished he had read the third one before the first.
Director Inzunza said it was good to get the positive publicity about the National City Wells. He attended some family events and some of his uncles remembered when there used to be a well by the school. As for the fishing program, he said it is good publicity also. He added that National City residents are going to be eating the fish that they catch, as long as it's the right size. He added that making the fresh water available is very important to add on to the cultural livability of the people of National City, and that it was a good, positive message.

Director Pocklington said that he had mentioned the Conservation Plan Workshops to CWA Board members, and he believed some of them would be attending. He handed out an article from Fortune magazine regarding pension funds and the $366 billion outrage. He said it is a very interesting article, and he read one paragraph to the board. He said this is happening not only in the public enterprise system but also in the private enterprise in which the pension funds of the companies in the Fortune 500 companies are $259 billion short. This is an item that crosses both public and private and it is something we all need to be concerned about.

Director Beauchamp referred to the statement in the monthly report that "67.4 acre-feet of water was spilled from the aqueduct in the Sweetwater Reservoir." He asked if the word "spilled" could be replaced with something like "cascaded." He commented on desalination and said that we need to move on with it. He does not want to get too far ahead of the issue, but he does not agree with the CWA talking about going to Mexico with a facility. If we build it in Mexico, there will not be a drop coming back across the border because they are going to use it all down there. Their loss rate is tremendous, about 20 or 30 percent of their water gets lost in their pipe system. We need to get on board more aggressively. He suggested a letter to the editor talking about how we are involved and that it is a concern for us. It is an opportunity to get our name out there in a positive way, show people we are concerned about it, and get a little bit ahead of the CWA. He thinks that the world trade organization regulations and judgments might be a powerful tool. He talked about the possibility of considering a private German company to go onboard with us as partners in the desalination project.

14. CLOSED SESSION
There was no need for one.

15. ADJOURNMENT
With no further business before the Board, Chair Doud adjourned the meeting at 5:13 p.m., to the hour of 4:00 p.m., on July 14, 2004.