minutes

Regular Meeting

Governing Board of Sweetwater Authority

July 23, 2008

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, July 23, 2008, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Beauchamp called the meeting to order at 3:30 p.m.

• ROLL CALL

Directors Present: Alkire, Beauchamp, Doud, Morrison, Pocklington, Thomas, Welsh

Directors Absent: None

Others Present: General Manager Rogers, Operations Manager Smyth*, Legal Counsel Cowett, Treasurer Farrow, and Board Secretary Schoonderwoerd. Staff members: Rick Alexander, Melody Diaz Leslie Filippi, Sue King, Bill Olson, George Silva, Don Thomson, Tom Woodrum, and Dina Yorba.

• 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.

• CHAIR’S PRESENTATION
There was none.

ACTION CALENDAR ITEMS

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA

Director Doud made a motion, seconded by Director Alkire, that the IDRC Project WaterWorks Grant Advisory Board meeting report be added to the agenda under Item 9. The motion carried.

2. ADOPTION OF RESOLUTION 08-12 RECOGNIZING TOM WOODRUM FOR HIS SERVICE AS ADMINISTRATIVE SERVICES DIRECTOR

Upon a motion made by Director Welsh, seconded by Director Doud, the following resolution:
RESOLUTION 08-12

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
RECOGNIZING TOM WOODRUM FOR HIS SERVICE AS
ADMINISTRATIVE SERVICES DIRECTOR

was passed and adopted by the following vote to wit:

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

Chair Beauchamp presented Mr. Woodrum with the resolution, a framed photograph of the reservoir, a miniature desktop bronzed fire hydrant, a $100 gift card, and a lifetime access card for the Authority’s fishing program as tokens of appreciation for his service to the Authority. Director Welsh added that no one will ever replace Tom, only succeed him.

*Note: Operations Manager Smyth entered the meeting at 3:35 p.m.

3. APPROVAL OF MINUTES

Director Pocklington made a motion, seconded by Director Welsh, that the Governing Board approve the minutes of the Special Meeting of July 1, 2008. The motion carried.

Director Pocklington made a motion, seconded by Director Welsh, that the Governing Board approve the minutes of the Regular Meeting of July 9, 2008 as amended by Director Thomas under Item 4.B., paragraph 2. This paragraph should read “Director Doud amended his motion as follows, seconded by Director Pocklington: that the Governing Board direct staff to continue to explore the Administration Building relocation with the City of Chula Vista and authorize staff to negotiate the final language in the letter of intent and bring it back to the Board through the Operations Committee for approval. The motion carried.

4. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Morrison, that the Governing Board approve Warrants 114973 through 115126 including all voided checks. The motion carried.

5. OPERATIONS COMMITTEE (Meeting of July 16, 2008)

A. Director Doud made a motion, seconded by Director Thomas, that the Governing Board approve the remote service at 1335 East 24th Street, National City, with the understanding that the property owner will be responsible for all fees and deposits associated with the remote service. The motion carried.

B. Draft Negative Declaration and Initial Study for the Loveland Reservoir Fishing Program Improvements. Environmental and Governmental Services Director Alexander briefed the Board on the status of the program, stating that this plan for fishing trail improvements at the Loveland Reservoir has been in place for some time. The project involves the construction of a small footprint bridge and the installation of a floating pier to provide better access to the lake for people who are fishing. The project is partially funded by Sweetwater Authority and the U.S. Department of Housing and Urban Development through a grant that Congressman Hunter helped the Authority secure about three years ago. This is the last phase of that project to be implemented. There are no negative impacts of the project; in fact, there may be positive impacts with the trail improvements. No comments were received by the June 25th public review deadline. Following Board approval, staff can proceed to complete the federal environmental process, and construction can then begin on the project.

Upon a motion made by Director Thomas, seconded by Director Pocklington, the following resolution:
RESOLUTION 08-13

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
ACCEPTING AS ADEQUATE AND ADOPTING THE NEGATIVE DECLARATION FOR THE LOVELAND RESERVOIR RECREATION PROGRAM IMPROVEMENT PROJECT AND
DIRECTING THAT A NOTICE OF DETERMINATION BE FILED

was passed and adopted by the following vote to wit:

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

C. Director Doud made a motion, seconded by Director Alkire, that the Governing Board award a sole-source contract in the amount of $130,133 to Speiss Construction Company, Inc., 1110 East Clark Avenue, Suite 210, Santa Maria, CA 93457, for the Claire Vista Tank “A” Improvement Project. The motion carried.

6. FINANCE AND PERSONNEL COMMITTEE (Meeting of July 21, 2008)

A. Director Welsh made a motion, seconded by Director Alkire, that the Governing Board award a sole-source contract in the amount of $38,465 to Southland Technology, Inc., 8053 Vickers Street, San Diego, CA 92101, for the Richard A. Reynolds Desalination Facility Assembly Room audio-visual system improvements. The motion carried.

B. Director Welsh made a motion, seconded by Director Doud, that the Governing Board award a sole-source contract in the amount of $39,278 to Southland Technology, Inc., 8053 Vickers Street, San Diego, CA 92101, for the purchase and installation of the larger capacity system for the Storage Area Network expansion project. 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 reported on items of interest on the CWA Board agenda of July 24th. There will be an update on the Lake Hodges storage issue and a closed session on Olivenhain MWD/Lake Hodges water quality obligations. A time and day will be set for a public hearing to consider amendments to the CWA Local Conflict of Interest Code. There will be presentations on the 2012 business plan update and strategic plan recording framework, and the FY ending June 30, 2008 audit plan and scope of work. There will be a Drought Management Plan implementation report and staff’s recommendation to adopt a resolution establishing procedures and policies for administration of the Drought Management Plan water supply allocation methodology. The Board will consider a request for MWD to set formal terms and conditions for Lakeside Water District's proposed Erreca annexation. Director Morrison reported that the Board will consider adopting a position of oppose, unless amended, on SB 68 (Kuehl), which would change how CEQA deals with the Quantification Settlement Agreement. The amendment would stipulate that this not apply to past actions. The other piece of legislation is AB 885 (Calderon), which is the proposal by two smaller MWD member agencies to add alternates to the Board to handle proxy voting. San Diego proposed an amendment to have a proxy voting system like CWA has in place, which would allow for proxy votes to be made by the agency, not the director, and would allow an alternate to attend in place of a director. There will also be reports on the Perata/Bass bill on the Safe, Clean, Reliable Drinking Water Supply Act of 2008 and the 20-Gallon Challenge advertising and marketing campaign progress. Director Pocklington added that there will be an update on MWD’s 2009 Integrated Resources Plan process and reports on the Colorado River programs and basin augmentation. A closed session will be held on the alleged air pollution violations on the All American Canal.

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

A. ACWA Region 10 Membership Meeting at Vallecitos Water District, which has been rescheduled to Monday, August 18, 2008, 10:00 a.m. to noon. Directors wishing to attend this pre-approved event will contact the secretary. No action was required by the Governing Board.

B. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board approve per diem for directors wishing to attend the Friends of the Water Conservation Garden “Dinner and Jazz in the Garden” on Sunday, August 24, 2008 from 5:00 to 7:30 p.m. The motion carried.

C. Water Education Foundation Northern California Tour – September 10-12, 2008, Sacramento, CA. There was no interest expressed in attending this event. No action was required by the Governing Board.

D. California Special Districts Association 39th Annual Conference – September 22-25, 2008, Hyatt Regency, Irvine 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 Doud attended the ACWA/CSDA State Controller’s Workshop on July 9th, and stated that there were 4,700 special districts that reported their GASB 34 financial transactions to the State Controller’s office last year. There is a seven-member local government advisory committee on financial reporting that controls any changes to be made to the annual report. He reported that the first speaker from the controller’s office could not be understood, and he found there were similar complaints about other state meetings when he attended the CSDA Planning Committee meeting on July 17th in Sacramento.

Director Doud reported on the First Friday Meeting on July 11th. A presentation was made by Endow Chula Vista, a Chula Vista Charitable Foundation philanthropy. A minimum donation of $1,000 per year is being requested for three to five years. Donors will vote each year for the local grant applications deemed most worthy and needed. Director Thomas attended as well and added that they would like to get at least 100-200 people. The charter enrollees will make decisions on how the money in the fund is spent. She enrolled in the program and supports it.

Director Pocklington reported on the Council of Water Utilities Meeting on July 15th, and stated that he posed a question about the San Diego region’s share of energy produced from its renewable resources. The speaker, Beth Jarosz of SANDAG, sent him a graph showing that it was one percent in 2000, five percent in 2005, with projections in 2010 of 15 percent, 25 percent in 2020, and 40 percent in 2030.

Director Morrison reported that the program at the National City Chamber of Commerce meeting on July 17th was a “how to” small business clinic featuring a series of about 8-10 short presentations from different business organizations and a business fair.

Director Doud attended the CSDA Planning Committee meeting on July 17th. He reported that the exhibit hall for the Annual Conference in Irvine in September has 49 booths, and 92 percent are sold. Sponsorship commitments total $88,000, and Best Best and Krieger pledged $5,000. This is expected to be a great conference with great speakers. The committee is still fine-tuning the strategic plan, membership survey, and financial review. Director Doud submitted a written report of his meetings attended to the Secretary for the file.

Director Thomas reported that the presenter at the Water Agencies Association Quarterly Meeting on July 17th was Mr. Bill Schweitzer, President of the Ramona Valley Vineyard Association. He made his presentation on behalf of agriculture, horticulture, and winemaking in relation to water. He compared the amount of water needed for ordinary agriculture, about three acre-feet per year, to the wine grape industry, only about one-half acre-feet per year. He spoke to EIR requirements and other challenges they have. Director Welsh added that this is the way to go in order to keep open space and a greenbelt if we cannot do so growing avocado trees. People in the water community should show support of this kind of land use, and she does not understand why there are so many hurdles in the permitting process.

Director Thomas reported that the speaker at the Bonita Business and Professional Association on July 22nd was the current President of the Sweetwater Valley Civic Association. He spoke about how people have pulled together on civic-minded issues in the past such as SR 54 and SR 125. They are trying to get more young people involved, and a website is being developed.

Director Thomas reported on the IDRC WaterWorks Grant Advisory Board meeting on July 10th. She directed the Board to the handout at their places about the project. She was proud that Sue Mosburg, the Authority’s Program Supervisor, has been a leader and teacher in this program. There was extensive participation in this program from many counties. The program caters to military personnel transitioning to the civilian workforce. She would like to come back with recommendations on how Sweetwater Authority may become more involved in supporting this project.
10. REPORT OF TREASURER

Director of Finance Farrow reported that she is in the process of closing out the fiscal year books, and the budget report for June will be in the next meeting’s Board packet. Year-end adjusting entries are being prepared, and auditing field work will begin next week. She reported that things look good for this fiscal year, and her preliminary figures indicate that we will meet the debt service ratio. She thanked staff for being diligent this year in completing projects.

11. QUARTERLY REPORT OF DIRECTORS’ EXPENSES 4TH QUARTER FY 2007-08

This spreadsheet report was provided to the Board for information purposes. Director Thomas noted corrections to be made to the report regarding her expenses over the quarter. She did not attend the Otay Water District Micro-turbine Clean Energy dedication on April 10th. Also, she would like the per diem payment she received for May 9th of the ACWA Conference replaced with her May 29th attendance at the Water Education Foundation Border Water Infrastructure Conference. She will work with the secretary to reimburse the Authority as necessary for the overpayment on April’s meetings.

12. MANAGEMENT REPORT

A. Report of Operations Manager Smyth: Mr. Smyth reported that he attended the San Diego Desal Partners meeting this afternoon. Poseidon will have a mayoral press event on July 31st to show support for the Carlsbad Plant. The Coastal Commission hearing will be held on August 6th at the City of Oceanside. More information on this will be forthcoming. Poseidon is requesting that each agency be represented at this meeting. The State Lands Commission meeting will be held on August 22nd.

B. Report of General Manager Rogers: Mr. Rogers reported that Peter Kuchinsky, JPIA’s Senior Risk Management Consultant, visited Sweetwater Authority to look over our programs and was very impressed with our preventative maintenance program. JPIA is developing a new committee on maintenance of water systems, and Mr. Kuchinsky wants Sweetwater Authority represented on that committee. He was particularly complimentary of the Distribution and Water Quality Departments.

13. DIRECTORS’ COMMENTS

Director Doud provided three outreach advisories he received from the ACWA Communications Committee related to the state’s water crisis.

Director Welsh thanked Tom Woodrum for his service to the Authority.

Director Pocklington also thanked Mr. Woodrum for his service and wished him well. He noted that he will be out of town on August 18th, the next South Bay Irrigation District meeting. He asked the South Bay Board to consider moving the meeting date.

Director Thomas commented that Channel 23 aired a Public Policy Institute of California panel discussion on the Delta, and she learned some things about the Delta’s challenges that she had not heard before. The panel topic compared the futures for the San Joaquin area and the Delta and promoting a peripheral canal. However, they said that even with a peripheral canal, this would not be conducive to exporting the water.

Director Alkire commented that he is confident that Tom Woodrum, an old Navy hand, has briefed his relief well, and that there will be a seamless turnover. He appreciates his service to the Authority.

Director Beauchamp stated he learned that one of the aspects of the Eagle Mountain Mine in Riverside County is to serve as a reservoir for MWD. The railroad is going to be used to supply the rocks for one of the scenarios at the Salton Sea. He noted that the newspaper has reported in a front page story how the water districts have been cutting back, and Olivenhain MWD was at the bottom and needs to make some changes. He congratulated Dina Yorba on her new position as Interim Administrative Services Director and hopes to see her in the future at various events. He thanked Tom Woodrum and encouraged him to stay active.

14. CLOSED SESSION

At 4:50 p.m., in compliance with Government Code Section 54956.9 (b), the Board recessed to convene in closed session with Legal Counsel concerning anticipated litigation regarding one item. All persons left the room with the exception of the Governing Board, the Management Team, Legal Counsel, Interim and Administrative Services Directors, and the Board Secretary. There were no minutes taken, and the session was not tape-recorded.

At 5:15 p.m., Chair Beauchamp declared the meeting to be in open session. No reportable action was taken by the Governing Board.

15. ADJOURNMENT

With no further business before the Board, Chair Beauchamp adjourned the meeting at 5:15 p.m.