minutes

Regular Meeting

Governing Board of Sweetwater Authority

July 12, 2006

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, July 12, 2006, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Pocklington called the meeting to order at 6:00 p.m.

• ROLL CALL

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

Directors Absent: Morrison and Salas.

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, Bill Olson, Jim Smyth, Don Thomson, and Tom Woodrum. Also, Legal Counsel Floyd, Best Best & Krieger, and Tom Teagle, member of the public.

• PLEDGE OF ALLEGIANCE TO THE FLAG
Director Pocklington 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 Pocklington said that Jim Bond, Chairman of the CWA, is visiting all of the member agency Boards and would like to speak to Sweetwater Authority or South Bay Irrigation District, and management will arrange the presentation based on Mr. Bond’s schedule. He said that reading in the minutes of the last Board meeting about the Pointe project reminded him of how he got into the water business 20 years ago. He believes we are working well with The Pointe people and asked management to keep the Board informed of the project’s progress. Director Pocklington then drew the Board’s attention to a news article from Investment Business Daily on solar powered buildings. Last month, on an MWD directors’ tour, he was able to visit the Education and Foundation headquarters up in Diamond Valley, which has an entire roof with solar panels that cost $4 million to build. The news article reports on major breakthroughs in solar power use.

ACTION CALENDAR ITEMS

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA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

At 6:09 p.m., in compliance with Government Code Section 54957.6, the Board recessed to convene in Closed Session to conference with Labor Negotiator William Floyd regarding labor negotiations.

All persons left the Board Room, with the exception of the Board members, Management Team, Legal Counsel, Secretary, and Director of Administrative Services Woodrum. There were no minutes taken, and the session was not tape-recorded.

NOTE: Director Morrison entered the meeting at 6:15 p.m.

At 6:52 p.m., Chair Pocklington declared the meeting to be in open session, and there was no reportable action.

3. APPROVAL OF MINUTES

Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve the minutes of the Adjourned Budget Meeting of June 23, 2006 and the Regular Meeting of June 28, 2006. The motion carried with Chair Pocklington abstaining on the June 28, 2006 meeting minutes as he was not in attendance.

4. APPROVAL OF DEMANDS AND WARRANTS

Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve Warrants 105888 through 106052 including all voided checks. The motion carried.

5. FINANCE AND PERSONNEL COMMITTEE (Meeting of July 3, 2006)

A. CLOSED SESSION
In accordance with Government Code Section 54957.6, the Committee met in closed session to conference with the General Manager regarding labor negotiations. There was no reportable action.

B. Director Alkire made a motion, seconded by Director Welsh, that the Governing Board award a sole-source contract in the amount of $48,275 to Boyle Engineering, Inc., 7807 Convoy Court, Suite 200, San Diego, CA 92111, for engineering services relating to the completion of the Application for Funding with the California Department of Health Services for the Sweetwater Authority Brackish Groundwater Desalination Project. The motion carried.

C. Director Alkire made a motion, seconded by Director Welsh, that the Governing Board approve preauthorized funding for Budget Projects 071104, 073003, and A3609 in the fiscal year 2006-07 budget.

6. OPERATIONS COMMITTEE (Meeting of July 5, 2006)

A. Director Doud made a motion, seconded by Director Beauchamp, that the Governing Board award a one-year extension of time and materials contracts to Sapphire Electric, Inc., 5725 Kearny Villa Road, Suite H, San Diego, CA 92123; and Enterprise Automation, 3002 Dow Avenue, Unit 508, Tustin, CA 92780. The motion carried.

B. Director Doud made a motion, seconded by Director Beauchamp, that the Governing Board award a one-year extension of time and materials contract to ABC Construction Company, Inc., 3120 National Avenue, San Diego, CA 92113. The motion carried.

C. Director Doud made a motion, seconded by Director Beauchamp, that the Governing Board award a one-year extension of time and materials contract for Cass Construction, Inc., 1100 Wagner Drive, El Cajon, CA 92020. The motion carried.

D. Director Doud made a motion, seconded by Director Beauchamp, that the Governing Board approve the updated Water Supply Assessment and Verification for the Chula Vista Bayfront Master Plan in accordance with Senate Bills 610 and 221, based on changes provided by the Port of San Diego. General Manager Bostad made copies of the Draft Assessment available to the Board members. The motion carried.

7. NEW BUSINESS

A. Upon a motion made by Director Beauchamp, seconded by Director Morrison, the following resolution:

RESOLUTION 06-06

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
RECOGNIZING ANGIE STOJANOVICH-DOYLE FOR HER SERVICE
AS JUNIOR ACCOUNTANT

was passed and adopted by the following vote to wit:

Ayes: Directors Alkire, Beauchamp, Doud, Morrison, Pocklington, and Welsh
Noes: None
Absent: Salas
Abstain: None
B. Discussion and adoption of position on Proposition 84, “The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006.” Director Welsh said that she attended an ACWA Region 10 workshop at Vallecitos Water District on July 6th, which she thought was going to be an informational meeting resulting in a vote to support, oppose, or remain neutral on Proposition 84, but that did not happen. Chair Pocklington said that MWD voted to support the proposition, with an abstention from the San Diego delegation. He said CWA has heard from the opposition, and the proponents will give a presentation at the end of the month. MWD turned down a request to delay its vote for a month.

General Manager Bostad drew the Board’s attention to a list of Proposition 84 supporters in the statewide community as of July 3, 2006. He noted that Denise Moreno Ducheny is supporting the proposition, as well as a number of environmental agencies and water agencies. This will be on the November ballot, and he thought there may be confusion for the average voter when a water agency opposes a water bond. He said that, once the Board made a decision, he would convey the result to ACWA.

Director Doud said he got an email from Saundra Jacobs, Region 10 Chairperson, apologizing for failing to reach a vote to support or oppose Proposition 84 at the July 6th meeting. In response to a question from Director Alkire, General Manager Bostad said that by the time we received the notice of the Region 10 meeting and the subsequent request for a position, there was not enough time to bring it before the Board. At the Region 10 meeting it was announced that only two to four agencies out of more than thirty have responded. They have postponed their action to July 21st to allow more time to respond.

Director Alkire said he was disappointed at the Region 10 meeting that agencies were expected to have responded when adequate notification was not given for Boards to hold their meetings to decide on the issue. Director Morrison said that a number of years ago National City had a proposition on the ballot called the National City Economic Development Act, which actually intended to legalize gambling in National City. Just because water is in the title, he does not think it is confusing if water agencies come out to say it is not really a water initiative. Director Morrison said he attended the Region 10 meeting as well and was disappointed that they needed to hear from each one of the water districts individually to decide how to vote. He said that ACWA was asked to put the water element of this proposition in at the end, after it was basically brought together. Director Morrison agreed that it throws away our political clout for the future when we want to actually do something for water.

Director Beauchamp said the Board should oppose Proposition 84 based on the following reasons: the lobbyist was paid to put the proposition together for the special interests of the environmental groups; it is not a comprehensive bill for water that follows the blueprint put together by water agencies throughout the state; Sweetwater Authority and other agencies were brought in at the last minute to give their blessing; there is no reciprocity to be expected by supporting this environmental bill; it is not a comprehensive solution to the Delta problem, but a band-aid patch to the levy issues, which involve regional and local land use decisions where housing is being built in flood ways; it has to do with special interests of small, agricultural and pear farmers who are supporting local legislators who are sitting on top of this issue and not allowing it to be resolved; and there could be confusion when and if the real bond issue shows up from the water industry in 2008. He said he was prepared to make a motion based on these factors.

Director Beauchamp made a motion, seconded by Director Doud, that the Governing Board oppose Proposition 84, “The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006,” and adopt a resolution with its reasons stated therein. Chair Pocklington voiced his concern that opposing this proposition will hurt us in the long run. He would rather take a neutral stance and not make a decision one way or the other. Director Welsh said her position would be to remain neutral. She said it is an environmentally friendly initiative with some benefits for the levy issues, although not a permanent fix, and right now we don’t know what we want for the long-term fix. The motion carried with Directors Pocklington and Welsh opposing.

General Manager Bostad said that since time was of the essence, staff will advise ACWA Region 10 of the Board’s position, and that a resolution will be brought to the next Board meeting and forwarded to ACWA upon adoption.

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

A. Director Welsh made a motion, seconded by Director Beauchamp, that the Governing Board approve per diem for Directors who wish to attend the Water Conservation Garden at Cuyamaca College “Friends of the Garden Party” – Thursday, July 13, 2006, 6:30 to 8:30 p.m. The motion carried.

B. Council of Water Utilities, San Diego County Meeting at StoneRidge Country Club, Tuesday, July 18, 2006, 7:15 a.m. – Program: Mr. John Bartel, President, Bartel Associates, LLC – ‘GASB 45 – The New Other (than Pensions) Post Employment Benefits Accounting Standard.” 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 Doud, that the Governing Board approve per diem for Directors who wish to attend the Chula Vista Nature Center Sneak Peek Preview Reception for the Wergeland Family Discovery Center – Friday, July 21, 2006, 6:00 p.m. The motion carried.

D. Water Education Foundation 2006 Sierra Watersheds Tour – August 3 to 4, 2006, Sacramento, CA. 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 Beauchamp and Director Doud attended the retirement ceremony for Augie Caires, General Manager of Padre Dam, on June 29th. Director Doud said the event was well attended, although the weather was very hot.

Director Doud reported on the First Friday breakfast on July 7th. The program was on international real estate and the speaker was Ellen Hoffman, who gave a briefing on the Eastlake Design District, San Diego County’s largest master planned design district featuring approximately 450,000 square feet of furniture, home accessories, home improvement, restaurants, etc.

10. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Operations Manager Rogers reported that, since the last Sweetwater Authority Board meeting, four notifications have been received from CWA that the Lake Skinner Treatment Plant has reached 95 percent capacity. This did not affect any of Sweetwater Authority’s customers, because we have different water sources.

B. Report of General Manager Bostad: General Manager Bostad reported that he received a copy of a letter from Mayor Jerry Sanders to Dianne Feinstein urging her support of our efforts with HR 1190. He also said that, with Director Pocklington’s support, Sweetwater Authority was able to resolve issues at MWD and CWA and receive the equivalent of $157,000 in direct replenishment credits from MWD and CWA. He also shared that he received a check today from Best Best & Krieger for $82,284.34, which was part of Sweetwater Authority’s share of the settlement with Reliant Energy. Counsel Cowett said that checks will be sent out soon for payment of the remaining attorneys’ fees. His calculation is that the districts have received about 75 percent of the estimated $750,000 in damages for the energy abuse suffered in 2001. Sweetwater Authority’s total is $600,000. Mr. Bostad said some of the Board members requested to take a look at the latest multi-ported survey well, which is being placed by the U.S. Geological Survey at the Naval Station. Because there is not much to be seen on the site and possible issues getting on the base, he would like to have the project team make a presentation to the South Bay Board. The Board concurred.

11. DIRECTORS’ COMMENTS

Director Morrison said that National City’s International Parade and Fair was included on the Board’s list of outreach projects pre-approved for per diem. This event was thrown together rather quickly this year as part of the Fourth of July celebration. He would like the Board to consider the Automobile Heritage Day as an alternative approved outreach project. General Manager Bostad said this item would be placed on the next Finance and Personnel Committee agenda.
Director Doud read a poem from a Hermosa Drive Elementary School student: “Beautiful water. Water is a beautiful thing. It helps us in every way. It helps us in the way that we use it to drink from. We use it to create electricity and to clean ourselves. Water is a beautiful thing. It is used for baptizing and having fun in the pool. If we want to keep such a beautiful thing, we have to not use such large quantities and recycle.”

Director Welsh publicly introduced Dr. Tom Teagle to the Board.

Director Pocklington said he flew to Denver through MWD for a survey of the salt content in the Colorado River and how salt gets into the river. He said that $49 million a year has been invested in keeping salt out of the river. They are finding out that by using only enough sprinkler irrigation so the flow doesn’t get back into the river, they can actually have better crops and reduce the salt going into the river. He attended an MWD-sponsored dinner with Ambassador Keyes in Utah. He said he remembered Sweetwater Authority, and he is enjoying his retirement. He added that about 50 people attended the tour, and it was very educational.

12. ADJOURNMENT

With no further business before the Board, Chair Pocklington adjourned the meeting at 7:31 p.m., to the hour of 3:30 p.m. on July 26, 2006.