minutes

Regular Meeting

Governing Board of Sweetwater Authority

August 10, 2005

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, August 10, 2005, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Pocklington called the meeting to order at 3:30 p.m.

ROLL CALL

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

Directors Absent: None.

Others Present: General Manager Bostad, Operations Manager Rogers, Legal Counsel Cowett, and Board Secretary Farpón. Staff members Rick Alexander, Bill Olson, George Silva, Jim Smyth, Don Thomson and Tom Woodrum.

PLEDGE OF ALLEGIANCE TO THE FLAG
Director Alkire 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 introduced Ron Morrison as the new director appointed by the City of National City and asked Board Secretary Farpón to swear him in. After being sworn in, Director Morrison took his seat as a member of the Governing Board.

ACTION CALENDAR ITEMS

ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA
There were none.

APPROVAL OF MINUTES
Director Doud made a motion, seconded by Director Salas, that the Governing Board approve the minutes of July 27, 2005. The motion carried.

APPROVAL OF DEMANDS AND WARRANTS
Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve Warrants 101197 through 101442 including all voided checks. The motion carried.

FINANCE AND PERSONNEL COMMITTEE (Meeting of August 1, 2005)

Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve the submitted language modifications to the Authority’s Rates and Rules concerning the use of temporary meters effective immediately, and that such modifications be formally adopted with the next submittal of revisions to the Rates and Rules. The motion carried.

Further discussion on proposed revisions to Adjustments to Customer Water Bills Policy. This was an information item and no action was required by the Governing Board.

Director Alkire made a motion, seconded by Director Welsh, that the Governing Board approve the recommended changes to Board Policies 507, 510, and 601 to include language that teleconferencing shall not be used unless a director is unable to attend in person because of health or personal emergency and it is approved by the Chair of the Board. Director Morrison said he understands the spirit of the recommended change, but he would prefer that members of the Board who are out of town on business be allowed to take part in the Board Meetings through teleconferencing, at the discretion of the Chair and on a case-by-case basis, and without receiving any per diem. Directors Salas and Alkire were not in agreement with Director Morrison. They do not see the need for a director to participate in a meeting via teleconference as long as there is a quorum to conduct the meeting. Director Morrison appreciated the comments and said that he has never teleconferenced and does not intend to do so, and that he will be at every meeting possible.

Director Salas said that she had comments on subparagraph C of Policy 510, Per Diem and Reimbursement. She would like the board to look at tightening up the definition of attending meetings of other organizations where such attendance is beneficial to the authority. She thinks it is very important that we establish a nexus between the meetings that we attend and the actual benefit to the water district. For example, she has not accepted payment on a couple of First Friday breakfasts which topics had no relevance or benefit to this water district. She thinks that we need to take a closer look at this because we are a public agency and the guardians of the ratepayer funds. There is a lot of scrutiny being put on agencies and she believes that it is warranted and we must be very careful about submitting per diems for those kinds of meetings. She really thinks that this board has an opportunity to take a step back and review the issue.

Director Welsh said that she had raised some of those same questions in the past and the message she received was that attending meetings of the Chula Vista or National City Chamber of Commerce, for instance, showed that we are part of the community. Director Salas said she believes there is some benefit to attend those kinds of events and that there is an ample opportunity throughout the year to attend those events when they have topics of discussion that are relative to us. We can all go on our own and be the ambassador for the water board when the topics are not relevant to the water district and not claim per diem. Her opinion is that the board members are public servants that are here to serve this organization and make sure that it is strong. As board members, sometimes we do things without expecting to be paid. Chair Pocklington agreed and said that he has done a lot of that in this board and the South Bay Irrigation District board. Director Salas said she knows when Chair Pocklington goes to meetings, and that he is doing his homework, by the reports that he gives us.

General Manager Bostad suggested pulling policy 510 and returning it to committee for evaluation of subparagraph C. Director Salas said this would be a good start and at that time she also would like information about the budget for attendance at conferences and how it is monitored.

Director Alkire made a motion, seconded by Director Welsh, that the Governing Board approve the recommended changes to Board Policies 507 and 601 and that Board Policy 510 be sent back to committee for further discussion. The motion carried.

OPERATIONS COMMITTEE (Meeting of August 3, 2005)

Director Doud made a motion, seconded by Director Beauchamp, that the Governing Board award a contract in the amount of $24,622 for the fire alarm system replacement to Interconnect Solutions Incorporated, 10759 Woodside Avenue, Suite D, Santee, CA 92071. The motion carried.

Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve funding in the amount of $32,650 from the Repair and Replacement Reserve Fund to proceed with the necessary relocations with the understanding that the City of Chula Vista will reimburse the Authority 50 percent of the actual final cost upon completion of the Authority’s work. The motion carried.

AD HOC COMMITTEE – ACWA CALIFORNIA WATER BLUEPRINT OUTREACH (Meeting of August 4, 2005)

Final Review and PowerPoint presentation “Keeping the Tap Flowing – A local perspective on state and local water issues”:

Director Beauchamp said the Ad Hoc Committee reviewed a second draft of the response to the No time to Waste Blueprint, which included a PowerPoint presentation that General Manager Bostad would show tonight. General Manager Bostad said that the purpose of the presentation is to address the call for No time to Waste –A Blueprint for California Water. This is a program promoted by ACWA to raise the awareness and the concern of regional water infrastructure support for adequate funding to maintain the quality of that infrastructure in the future. We have taken ACWA’s perspective and added to it to provide not only a statewide perspective but also a local perspective. Through our GIS Section we have prepared a presentation of the big picture of water in California.

The presentation started with a view of the entire Bay Delta watershed that includes the Sacramento and San Joaquin rivers. General Manager Bostad said that our imported water supply from Northern California is conveyed through approximately 600 miles of aqueduct and Sweetwater Authority is near the end of the pipe. The water from the San Diego County Water Authority system is conveyed from Diamond Valley Reservoir and Skinner Reservoir and treated at the Skinner Treatment Plant. From there it is conveyed into the CWA system to the 23 member agencies. General Manager Bostad said that this presentation gives an overview of the big picture and some of the challenges at the state level, as well as what Sweetwater Authority is doing at a local level. The purpose of the program is to provide this information to local councils, governments, Kiwanis clubs, rotary clubs and the community.

He noted that at the time of providing the actual presentation, there would be copies of the No Time To Waste summary, which will also be set at a poster board as part of the presentation. The presentation will be adapted to the different audiences, whether it is audiences with a good general knowledge of the water system regionally and locally or the general public. This presentation will provide a better understanding of where the water supply comes from. A significant source of that supply comes from the Bay Delta and the Colorado River aqueduct. There are other major aqueducts that provide water into the major overall system, and if one of the major systems fails, for example, the LA aqueduct, the City of Los Angeles would turn to the Colorado River for water. As a result of that, the supply would be very tight. That gets to the idea that we are all interlinked in a chain of water supply reliability and there is no time to waste.

Mr. Bostad talked about the condition of the Bay Delta, which is one of the most important issues and has serious problems. It supplies water to more than 22 million people and is the single most important link in the California water system.

We are faced with approximately 40 percent increase in water use by the year 2030. That is a significant quantity of water. Not only do we have to maintain infrastructure, but we also have to expand it to keep up with the growth issues. This expansion includes water storage, desalination, and recycling. We need to support investments and develop a diverse mix of programs and projects to provide reliability improvements in the whole state and locally. These investments are going to be significant, both in the Delta for improvements to the levies and on a statewide level, and they will complement our local efforts. We need to plan for the future and have more effective plans that integrate opportunities for water supply and development. One of the recommendations of the No Time To Waste Blueprint for California Water is that all regions of California share the need and responsibility for adequate reliable water at affordable rates. These recommended actions will come at a cost but failure to do so would be even more costly.

The presentation also focuses on the local picture and some of the efforts that are going on at Sweetwater Authority. Mr. Bostad noted that an indication of our level of conservation is the fact that the Sweetwater Authority’s average per capita use of water is 120 gallons compared to 187 gallons at the CWA. Sweetwater owns one of the most diverse water systems in the county and we have been investing since the formation of the City of National City. This system includes two local reservoirs with over 50,000 acre feet of water when full, imported treated and untreated connections, groundwater desalination facilities, a surface water treatment plant, and local wells. As for future needs, we are working at increasing well production; increasing groundwater desalination; continuing conservation efforts; and water transfers. Other future options are desalination of seawater, evaluating the possibilities of imported water storage at Loveland Reservoir, and developing a consensus with the region and through MWD to bring in an aqueduct to store imported water at Loveland. We are also evaluating the policy to store water in the National City Well field.

Director Beauchamp said this presentation is a tool, customized to our area, that will allow us to participate in a statewide effort. General Manager Bostad commented that the presentation could be done by staff and a board member. Depending upon how the board member wants to handle it and the type of audience, we can either have the board member provide as much as they are comfortable with and a staff member present to provide support to questions, or a staff member can provide the presentation. Director Beauchamp thinks it is important for board members to be present. Director Welsh said she appreciated being part of the committee and commended Communications and GIS staff for the incredible job they did. General Manager Bostad and Director Salas also thanked staff.

Upon a motion made by Director Welsh, seconded by Director Salas, the following resolution:
RESOLUTION 05-11

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
IN SUPPORT OF NO TIME TO WASTE: A BLUEPRINT FOR CALIFORNIA WATER

was passed and adopted by the following vote to wit:

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

NEW BUSINESS

ACWA Election – Call for Candidate nominations for President and Vice President – Deadline to submit nominations: September 1, 2005: No action was taken by the Board.

ACWA – NWRA Election – Call for candidate nominations for three directors and one alternate to serve the 2006-2007 term – Deadline to submit nominations: September 10, 2005. No action was taken by the Board.

ACWA/JPIA Executive Committee Election Notice – Office of the President and Vice President – Deadline to submit nominations: October 14, 2005. No action was taken by the Board..

Director Welsh made a motion, seconded by Director Doud, that the Governing Board support the nomination of Glen Peterson, Director of Las Virgenes Municipal Water District, as Vice President of ACWA. The motion carried.

APPROVAL OF DIRECTORS’ ATTENDANCE AT MEETINGS AND FUTURE AGENDA ITEMS

Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve per diem for directors who attended the First Friday Breakfast on July 8, 2005. The motion carried.

First Friday Breakfast – August 5th, 7:30 a.m. Hosted by Chula Vista Chamber of Commerce – Guest Speaker: Dr. Lowell Billings – Topic: Legal Challenge to California on Implementation of “No Child Left Behind” for English learners. This item might be brought back at a future meeting.

Dedication Ceremony for Olivenhain Municipal Water District’s Gano Reservoir in honor of Director Harold L. Gano – August 26, 2005 – 9:30 a.m. – 1:00 p.m: Directors Doud, Beauchamp, Pocklington, Salas, and Welsh will attend this ceremony. Director Morrison will check his schedule and notify the Secretary. Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve per diem for any directors wishing to attend this event. The motion carried.

CSDA Annual Conference & Exhibitor Showcase – September 27-29, 2005 – The Westin Long Beach, Long Beach, California. Director Doud said he would attend this pre-approved event. The rest of the directors will check their schedules and notify the Secretary. No action is required by the Governing Board.

REPORT OF DEPUTY TREASURER – HANK GAUS
Mr. Gaus had nothing to report.

BUDGET REPORT – DIRECTOR OF FINANCE GAUS
Report as of June 30, 2005.

Mr. Gaus reported that at the end of the 2004-05 Fiscal Year the water sales were just under $2 million less than what we anticipated. Other income, if we include the bond proceeds, is over budget by $6 million dollars. Excluding the bond proceeds, we are under budget by $2 million. That $2 million is what we put in the budget anticipating a settlement with CALTRANS, and we will carry it over next year as a receivable. Without the $2 million, we ended the year within $88,000 of what we projected. The Interest Income was $72,000 better than what we projected and Operating Expenses were $1.6 million less than what we projected, mainly because we did not have to purchase as much water due to the rainy season. Overall, we almost broke even when the year closed out.

MANAGEMENT REPORT

Report of Operations Manager Rogers: Operations Manager Rogers referred to a report of the USGS that had been distributed to all the members of the Board, which includes the study USGS did in conjunction with Sweetwater Authority to measure the depth and the age of the water. He also reported that the Skinner Plant has been at 95 percent capacity for the last four days, and that we have been on local supplies since early June, with no outside purchases.

Report of General Manager Bostad: General Manager Bostad said we would be using this USGS report when we go back to Congress to show that some of the investment from the Federal Government was very beneficial in providing this local information supportive of our groundwater facilities. We continue to look for more funding and support, from Filner’s office in particular.

General Manager Bostad also reported that our liability insurance with JPIA went down from $467,000 to $329,000 due to a considerable reduction in our experience factor. With reduction in claims, we have gone down in cost. He also mentioned that the President signed the energy bill, and the reason he is bringing it up is because there were concerns that there would be a safe harbor clause for MTBE, which has been a significant containment of groundwater supply. That clause did not get included, which is a tremendous positive result for the water agencies. Part of it is due to the involvement of ACWA and many member agencies participating in the effort.

He informed the Board that Sweetwater Authority has been invited to participate in a limnology study at the CWA to evaluate the impacts to water quality in the Olivenhain/ Hodges system as they move water back and forth through their hydrogeneration system. We have put a lot in investment in protecting water quality and we could end up having Hodges water placed in Sweetwater Reservoir, which would take away what we are trying to do with our Urban Runoff System to protect our water. Being a part of this study will be beneficial because raw water is going to move through the county in different ways in the future. It used to be we buy raw water from the Skinner/Diamond Valley system. In the future, it could include water from San Vicente or Hodges. It is nice that we have been requested to be a participant and he is hoping that we can share our knowledge and experiences to find some solutions.

DIRECTOR’S COMMENTS

Director Beauchamp said he is pleased to have Mr. Morrison on this board. With his level of education and experience, he will be a great asset.

Director Doud said he got a letter from a law firm in Newport Beach regarding a newly invented thermal water desalination system, which he turned over to the General Manager.

Director Welsh also welcomed Director Morrison. She said she is grateful that he is on the Board. She said she goes back to Mayor Morgan serving on the board, and then Mayor Waters and then Mayor Inzunza. She thanked him for being a part of the board.

Director Salas said she was glad Director Morrison is here. She worked with him when she was a Council member and she knows his work ethic. He is a super guy and will be a great addition to the board. She also wanted to let the board know she would not be at the Operations Committee meeting on the 17th.

Director Alkire welcomed Mr. Morrison too.

Director Morrison thanked the board and said he is sure he will learn a lot more about water than he ever wanted to and will enjoy the learning experience. He will count on the board’s patience as he catches up.

Director Pocklington said he was at Skinner today. MWD is involved with negotiations and they thought it would be important to have a director talk to the employees. He is glad he did. It was a real eye opener. He had an opportunity to talk and communicate with over 100 employees at MWD today. Some of them thought that the board was mad at them because they are not moving forward on this contract. There are about 85 issues and we are only through 35 of them and the tough ones are still to come. There were employees who had only been with MWD three months and some as long as thirty-five years. The average was about twenty years. He actually met an employee that was caught fishing at Sweetwater back in the 80’s. He also commented that module seven is being built and that will take care of our treated water problem but it will not be completed until 2008. It is a major issue. They have over $375 million of projects going on right now at the Skinner Plant. He said that this was the first time they have let MWD directors get directly involved with the employees and he thinks that is great.

CLOSED SESSION

There was no need for one.

ADJOURNMENT

With no further business before the Board, Chair Pocklington adjourned the meeting at 7:18 p.m., to the hour of 3:30 p.m. on August 24, 2005.