minutes

Regular Meeting

Governing Board of Sweetwater Authority

JULY 14, 2004

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, July 14, 2004, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Doud called the meeting to order at 4:00 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. Staff members Hank Gaus, Sue King, Mary Ann Mann, Mark Molsberry, Bill Olson, George Silva, and Jim Smyth.

· PLEDGE OF ALLEGIANCE TO THE FLAG

Chair 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 Doud reminded the Board members about the Water Agencies Association dinner tomorrow night and that the van would be leaving at 5:30 p.m. He introduced Richard Mallard, a member of the public, who was attending the meeting today.

ACTION CALENDAR ITEMS

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA

There were none.

2. APPROVAL OF MINUTES

Director Pocklington made a motion, seconded by Director Reynolds, that the Board approve the minutes of June 30, 2004. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Pocklington made a motion, seconded by Director Beauchamp, that the Board approve Warrants 95169 through 95391 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of July 6, 2004)

Director Welsh made a motion, seconded by Director Alkire, that the Governing Board approve the 2004-05 membership renewal in California Special Districts Association, San Diego Chapter in the amount of $100. The motion carried.

Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board amend by resolution the Annual Statement of Investment Policy to include the proposed changes to the section governing the investments in commercial paper. The motion carried.

NOTE: Director Inzunza entered the meeting at 4:03 p.m.

Discussion of Management salaries. This was an information item and no action was required by the Governing Board.

5. OPERATIONS COMMITTEE (Meeting of July 7, 2004)

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

Discussion of Caltrans I-5/SR 54 landscaping project. This was an information item and no action was required by the Governing Board.

Discussion regarding recycled water service to proposed Duke Energy Facility. This was an information item and no action was required by the Governing Board.

6. RECREATION COMMITTEE (Meeting of July 8, 2004)

Sweetwater Reservoir Shoreline Fishing Program.

A. Construction Progress. This was an information item and no action was required by the Governing Board.

B. Ribbon Cutting Schedule. This was an information item and no action was required by the Governing Board.

7. ADOPTION OF RESOLUTIONS

C. Upon a motion made by Director Welsh, seconded by Beauchamp, the following Resolution:
RESOLUTION 04-13
RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
ADOPTING AN ANNUAL STATEMENT OF INVESTMENT POLICY

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

D. Upon a motion made by Director Welsh, seconded by Director Alkire, the following Resolution:
RESOLUTION 04-14
RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
SUPPORTING HR 4389

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

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

A. Urban Water Institute - The 11th Annual California Urban Water Conference - August 25-27, 2004, - Hyatt Regency Islandia Hotel, Mission Bay, San Diego. Directors Beauchamp, Doud, Pocklington, Reynolds and Welsh will be attending this pre-approved event. No action was required by the Governing Board.

CSDA 2004 Annual Conference - September 27-30, 2004 - Renaissance Esmeralda Resort and Spa, Indian Wells. Directors Doud and Reynolds will be attending this pre-approved event. No action was required by the Governing Board.

9. REPORT OF TREASURER - WANDA AVERY

Ms. Avery reported that the interest rate at the Local Agency Investment Fund is still 1.58 percent.

10. MANAGEMENT REPORT

A. Report of Rainfall and Reservoir Levels - Operations Manager Rogers: Operations Manager Rogers pointed out the picture on display of the parking area of the Fishing Program at Sweetwater Reservoir. He reported that some employees, as well as 38 members of the public, had a preview tour of the shoreline fishing area before the official opening next week. He added that staff received some valuable input from some of the members of the public who attended the tour.

Report of General Manager Bostad: Mr. Bostad informed the board that Senator Barbara Boxer had sent us a letter with her warmest greetings as we gather for the ribbon cutting ceremony for the Sweetwater Reservoir Fishing Facility. Although she will not be able to attend, she sends her best wishes for a memorable event. She added that this event would highlight the successes that the Sweetwater Authority has had in creating such an outstanding public facility. Manager Bostad added that we have been developing a relationship with Barbara Boxer's office since Mr. Reynolds initiated it a number of years ago. He appreciates that she took the time to confirm that she is aware of the program and if she were available she would try and attend.

Manager Bostad asked Counsel Cowett to provide a brief summary on the Duke Energy settlement. Counsel Cowett reported that the Attorney General had arranged for a statewide settlement with Duke Energy for about $206 million. The documents indicate that the nine plaintiffs will receive $700,000 plus attorneys' fees. Sweetwater Authority's share of the $700,000 is about $61,000. The attorneys' fees that have been awarded include all of the fees up until January of this year in the Williams settlement and the fees from January to whenever the hearing is held. The damages for Sweetwater Authority were calculated at about $1,600,000 and they anticipate the full recovery including the attorneys' fees. Mr. Cowett added that the total recovery up to this point, including the Duke settlement, would be $1,050,000.

11. DIRECTORS' COMMENTS

Director Welsh said that Mr. Smyth needs to be recognized for performing nobly two times in one week. He participated in the Sweetwater Valley Planning Commission presentation on the fishing program and also did an impromptu on the antennae problems that some of the residents of Bonita were having. He was masterful in communicating.

Director Inzunza said that since this is a water board and one of its members, Director Pocklington, is on LAFCO, he would comment on the importance to respect the sovereignty, autonomy, and democracy of Special Districts and supporting the people's right to organize and to advocate regardless of whether they have a sphere of influence or any authority in the infrastructure, and knowing that the issue of dissolving or creating districts should be left in the hands of the people that voted it in or out. There are many districts throughout this country that represent the best of America. He has learned in studying in a few different countries at the university level that countries like Italy, Spain, Mexico, are the way they are because they do not have Special Districts and the people do not have the right to organize and assess for the most ridiculous reasons. It is those reasons that keep this country free and an independent democracy. He brings this up because he recognizes that there are issues with the Tijuana Water District and he believes that their assessment fees are way too high. He believes that there needs to be more responsibility on what those funds are used for. He believes that it is not and should not be recognized as a water district, but should instead be a preservation and conservation district, one that represents open space and advocates for that open space. He believes that LAFCO will recognize, after a public vote is taken, that the people of that district absolutely and adamantly want the district to stay alive.

12. CLOSED SESSION

There was no need for one.

13. TOUR OF FISHING FACILITIES

The Board reconvened the meeting at the Sweetwater Reservoir Shoreline Fishing Facility at 4:45 p.m. In attendance were all members of the Board, Legal Counsel, Management team, Secretary, and some staff members. General Manager Bostad provided information on the facilities and the arrangements for the ribbon cutting, and answered questions from the Board Members regarding the fishing program and the upcoming official opening.

14. ADJOURNMENT

With no further business before the Board, Chair Doud adjourned the meeting at 5:30 p.m., to the hour of 3:30 p.m. on July 28, 2004.