minutes

Regular Meeting

Governing Board of Sweetwater Authority

January 10, 2007

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, January 10, 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 and Welsh

Directors Absent: None

Others Present: General Manager/Treasurer Bostad, Treasurer Delegatee Farrow, and Board Secretary Schoonderwoerd. Staff members, Rick Alexander, Bill Olson, Don Thomson, Jim Smyth, Tom Woodrum, and Kevin Kasner

• PLEDGE OF ALLEGIANCE TO THE FLAG
Director Thomas 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

Chair Beauchamp presented a list of standing committee assignments, as well as Board representatives and alternates for external organizations and local community organizations as authorized in Board Policy 511. Chair Beauchamp also proposed that he assign members to “on-call” committees such as Recreation, Consultant Selection, Water Conservation, and Security as it becomes necessary in order to give Directors an opportunity to serve on a committee in which they have a particular interest. This met with the Board’s approval.

ACTION CALENDAR ITEMS

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA

A. Director Doud made a motion, seconded by Director Alkire, that the ACWA Spring Conference & Exhibition – Water and Politics: The Sacramento Connection – May 8-11, 2007 be added to the agenda as Item 7.D. The motion carried.

B. Director Welsh made a motion, seconded by Director Thomas, that the Local Government Commission 16th Annual Ahwahnee Conference for Local Elected Officials on March 15-18, 2007 be added to the agenda as Item 7.E. The motion carried.

2. APPROVAL OF MINUTES

Director Pocklington made a motion, seconded by Director Alkire, that the Governing Board approve the minutes of the December 27, 2006 meeting. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve Warrants 108292 through 108468 including all voided checks. The motion carried.

4. OPERATIONS COMMITTEE (Meeting of January 3, 2007)

A. Director Doud made a motion, seconded by Director Welsh, that the Governing Board award a contract in the amount of $264,230 to NEWest Construction Company, Inc., 7964 Arjons Drive, Suite A, San Diego, CA 92126, for the metallic main replacement at the intersection of 16th Street and National City Boulevard, National City, and approve funding from the Repair and Replacement Reserve Fund in the amount of $60,000 to cover the deficit. The motion carried.

B. Discussion of the San Diego County Water Authority’s Voucher Incentive Program. Following an update on CWA’s ultra low-flow toilet voucher incentive program, the Board discussed CWA’s decision to end the program. The Directors expressed concerns about how quickly the vouchers are depleted by other areas of the county, the lack of knowledge of the program by some sales people, and the number of Authority consumers still on the waiting list for vouchers. Director Morrison expressed his concern about CWA moving over to landscaping conservation incentives when the current voucher program still has benefit to the Authority’s consumers living in an older urban area with older plumbing. The long list of Authority consumers interested in the voucher is indicative of a continued need. General Manager Bostad added that the Commercial and Industrial Program will continue past March 31st. The Board directed staff to evaluate options to accommodate the backlog of Sweetwater Authority consumers on the list once CWA ends its program, and to bring this item back to the Board. This was an information item and no action was required by the Governing Board.

5. FINANCE AND PERSONNEL COMMITTEE (Meeting of January 8, 2007)

A. Director Alkire made a motion, seconded by Director Thomas, that the Governing Board approve the 2007 membership renewal in the Water Education Foundation (WEF) and payment of dues in the amount of $2,397. The motion carried.

B. Director Alkire made a motion, seconded by Director Pocklington, that the Governing Board approve the 2007 membership renewal in the American Membrane Technology Association (AMTA) and payment of dues in the amount of $625. The motion carried.

C. Director Alkire made a motion, seconded by Director Welsh, that the Governing Board approve the selection of Total Resources Management, 510 King Street, Suite 300, Alexandria, Virginia 22314, as the consultant to implement the MAXIMO Enterprise Asset Management System and authorize staff to proceed with contract negotiations for the final scope and budget not to exceed $120,000. General Manager Bostad reviewed the background and benefits of the MAXIMO system, which is a comprehensive computerized database management system that tracks all the assets of the Authority. The intention was to have MAXIMO implement the system, but necessary adjustments to meet Authority contract requirements were denied by MAXIMO. Responses to requests for proposal indicated that Total Resources Management (TRM) is the most qualified firm for the implementation project. TRM is familiar with the project and has a background with CWA. The motion carried.

6. NEW BUSINESS
There was none.

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

A. Council of Water Utilities, San Diego County Meeting at the StoneRidge Country Club, Tuesday, January 16, 2007, 7:15 a.m. – Program: P. Joseph Grindstaff, Director, California Bay-Delta Authority – “Bay-Delta Changes and the Need for Storage through Delta Conveyance Plans.” Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

B. California Special Districts Association 2007 Board Member Training Workshop (three location options) – January 25-26, Carmichael, CA; February 8-9, Port Hueneme, CA; or March 1-2, Ontario, CA. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

C. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board approve per diem for Director Beauchamp’s attendance at the National City Chamber of Commerce Annual Installation Dinner on February 3, 2007. The motion carried.

D. ACWA Spring Conference & Exhibition – Water and Politics: The Sacramento Connection, May 8-11, 2007. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

E. Director Pocklington made a motion, seconded by Director Alkire, that the Governing Board approve per diem for Directors who wish to attend the Local Government Commission 16th Annual Ahwahnee Conference for Local Elected Officials, March 15-18, 2007. The motion carried.

8. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Doud reported on his attendance at the NWRA Leadership Forum on January 4-5, 2007 and distributed a written report to the Board to be kept on file with the Secretary. He noted Resolution 2006-11 on Colorado River Salinity Control, which authorizes the Bureau of Reclamation to provide 25 percent of the construction cost up to a maximum of $50 million dollars for grants to assist in constructing regional brine lines to maintain the long-term salt balance of the Southern California coastal plain.

Director Thomas submitted a written report on her attendance at the First Friday Meeting of January 5th. Mr. Harold Tuck, Homeland Security Coordinator for San Diego County, made a presentation on the status of the South Bay security system and program and its recognition as one of the top six model programs in the U.S. The program is unique in that it is proactive in mock emergency procedures and uses the highest of technology in its operations center. Also noted was video conferencing, GIS technology, and cell phone text messaging, which is described as the best way to communicate when phone line systems and cell phone antenna are not functioning. The final message given was that each individual must be prepared for isolation of at least 72 hours after which the system would be put into place for response.

9. MANAGEMENT REPORT

A. Report of Operations Manager: General Manager Bostad reported that Operations Manager Rogers is on vacation this week.

B. Report of General Manager: Mr. Bostad provided a video television news report on the Poseidon Resources agreement. A good deal of interest is being generated in this project due to accelerated increases in costs for imported water. If Poseidon can be successful in this effort as a private supplier, it is of significant benefit that the associated capital will not need to be generated by the member agencies. Mr. Bostad said that dates for a tour of the Carlsbad facility are being explored, and the Board will be contacted for their availability when those dates are identified. He added that he has asked Peter MacLaggan to make a presentation to the Council of Water Utilities meeting in February. Mr. Bostad noted that the Authority received the President’s Special Recognition Award from ACWA-JPIA for achieving a low ratio of ”Paid Claims and Case Reserves” to “Deposit Premiums” in the Property Program for the period 4/1/02 to 3/31/05. He also distributed a joint media release on the Authority’s participation in the Water Conservation Garden.

10. DIRECTORS’ COMMENTS

Director Welsh commented that she was happy to be back following her holiday visit with her grandchildren.

Director Doud commented that John Fox, President of the California Special Districts Association, had submitted his name for appointment to the Planning Committee for 2007. This committee develops a plan for the future of CSDA and reviews and monitors planning documents on a regular basis. Also, Harry Ehrlich’s retirement left a vacancy on the CSDA Board, and Director Doud intends to submit his name for appointment to that seat and ask for support from the South Bay Irrigation District Board.

Director Pocklington commented that MWD is recommending a 6.9 percent rate increase as of January 2008. Three years ago, it was said that for the next ten years the expectation was that the increase would be between 3.0 to 5.0 percent. However, energy, chemical, and capital improvement program cost increases have become major components in this decision. The MWD Board will meet tomorrow to gather ideas and to see if there are any ways to reduce this rate increase, although he does not believe it will be easy.

Director Thomas commented that she was pleased to see Tom Woodrum and Sue Mosburg at the Homeland Security program and encouraged staff attendance at community programs of interest to the Authority. She thanked Kevin Kasner and the SARA Committee once again for the enjoyable holiday party where she had an opportunity to meet employees. She was glad to see that everyone could work and play well together.

Director Beauchamp commented that he had attended his first meeting of the Water Conservation Garden as a director and was presented with a plaque imprinted with a news article on the Warren Buckner Succulent Garden. He will supply the Board with a list of activities planned for the year at the Garden.

11. CLOSED SESSION
There was none.

12. ADJOURNMENT

With no further business before the Board, Chair Beauchamp adjourned the meeting at 6:55 p.m., to the hour of 3:30 p.m. on January 24, 2007.