minutes

Regular Meeting

Governing Board of Sweetwater Authority

August 22, 2007

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, August 22, 2007, 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, and Welsh

Directors Absent: None

Others Present: General Manager/Treasurer Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Delegatee Farrow, and Board Secretary Schoonderwoerd. Staff members, Bill Barsch, Cynthia Berndt, Janet Gonzalez, Michael Garrod, Bill Olson, George Silva, Jim Smyth, Tom Woodrum, and Dina Yorba. Also present: Lyn Wurbs. Present for public comment: Todd and Lorene Hillman and Michael Hefner

• 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)
Mr. and Mrs. Todd Hillman, 5941 Lazy Trail Court, Bonita, addressed the Board with their concerns over the application for permit by T-Mobile to install cellular antennas on McMillin Tank at 5969 Steeplechase Road. As the owner of the home closest to the water tank, Mr. Hillman expressed his concern with the safety issues, as well as the potential depreciation in the value of his property. He referred to the electromagnetic fields (EMF), the radiation levels emitted from the antenna. He appealed to the Board to use its power to stop the project. Mrs. Hillman reiterated that she believes the placement of this antenna could potentially have significant impact on the health of other homeowners living in the community around the water tank, as well as on the value of their property, and appealed to the Board to block the permit for this antenna. General Manager Bostad informed the Board and the Hillmans that this will be going to the County for final permitting and suggested that they participate in that process. He recommended to the Board that staff further investigate the issues and bring this item back to the Board. Director Morrison noted that the FCC has a specific ruling on cell towers that does not allow medical reasons as grounds for denial of a cell tower. Chair Beauchamp directed staff to bring this issue back to the Board via the Operations Committee. He thanked the Hillmans for taking the time to address the Board to voice their concerns and assured them that the Authority would be in contact with them regarding this issue.
Mr. Michael Hefner addressed the Board regarding his concerns over improper billing methods and overbilling water consumption at the apartment complex where he resides at 601 Telegraph Canyon Road in Chula Vista. Mr. Hefner explained that the residences are apartments that were formerly a condominium complex. Each of the 12 buildings has its own metering, with roughly six apartment units per meter. He stated that BRE Properties is not fairly distributing the cost for water by equally distributing the bill among all residents. There is no accounting of units used, just a flat fee for water service, so there is no motivation or reward for those residents who are conserving. He also stated that smaller families are absorbing the cost for water consumption of larger families and of those who do not conserve. General Manager Bostad requested that staff be given some time to investigate Mr. Hefner’s issues, work to resolve the problem, and report back to the Board as needed. If a resolution cannot be reached, the matter will come back to the Board via committee.

• CHAIR’S PRESENTATION
There was none.

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 Doud, that the Governing Board approve the minutes of the August 8, 2007 meeting. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve Warrants 111036 through 111214 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of August 20, 2007)

A. Donation request for “Christmas in October.” The Board discussed this request at length. Director Morrison expressed concern over granting a donation request without having an outlined program already in place. Director Alkire noted that the Committee directed staff to investigate drafting such a program for future requests. Director Thomas suggested that such requests would be more appropriately promoted through the Water Conservation Garden, where the Authority has invested in supporting drought-tolerant landscaping, or the Chula Vista Nature Center. Director Pocklington cautioned against exposing the Authority to criticism for granting donation requests. The Board concluded that, although this is a very worthwhile program, the Board should continue its practice to not approve charitable donations.
Director Doud made a motion, seconded by Director Pocklington, that the Governing Board deny the request for a donation to “Christmas in October.” The motion carried with Director Welsh opposing.
B. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board approve the renewal of the Fiscal Year 2007-08 Staff Utility membership in the American Water Works Association and the payment of dues in the amount of $4,642. The motion carried.
C. Review of Board Policy 510 – Per Diem and Reimbursement. The Board discussed the revisions to Policy 510 as recommended by the Finance and Personnel Committee. Director Doud noted that the policy did not address reimbursements for meetings within San Diego County at which meals are not provided. It was determined that the suggested language changes were not clear enough with regard to reimbursement of expenses for meetings inside San Diego County, as well as lodging cost limits when attending conferences that offer a group lodging rate.
Director Pocklington made a motion, seconded by Director Welsh, that the Governing Board refer Board Policy 510 back to the Finance and Personnel Committee for further modification and clarification. Legal Counsel will assist with drafting the necessary language. The motion carried.

5. NEW BUSINESS

Director Pocklington made a motion, seconded by Director Welsh, that the Governing Board nominate Director Doud for appointment to the ACWA Federal Affairs, Local Government, or Communications Committee and Director Thomas for appointment to the Water Quality Committee and Safe Drinking Water and Clean Water Subcommittees for the 2008-09 term. The motion carried.

6. REPORT OF THE SOUTH BAY IRRIGATION DISTRICT REPRESENTATIVE AND THE CITY OF NATIONAL CITY REPRESENTATIVE TO THE SAN DIEGO COUNTY WATER
AUTHORITY

Note: Director Morrison left the room at 4:29 and returned at 4:32.

Director Pocklington reported on items of note on the August 23rd CWA Board agenda. There will be an update on the Twin Oaks Valley Water Treatment Plant project, as well as consideration of a change order to the CH2M Hill professional services design-build contract and an amendment to the Malcolm Pirnie, Inc. professional services contract to provide additional claim support services. The Board will consider a $500,000 professional services contract to Camp Dresser & McKee for a detailed feasibility study of a regional concentrate conveyance system in south San Diego County. The Board will vote on the following positions on legislation: support, if amended, on AB 1489; support on AB 1683; and support, if amended, on SB 1002. The Board will consider an agreement with the U.S. Bureau of Reclamation to accept grant funds for implementation of the Smart Landscape Grant Program. There also will be updates on the Quagga Mussel problem; the Drought Management Plan Implementation; potential reductions to the interim Agricultural Water Program customers; proposed fluoridation of imported potable water supplies from MWD; impacts of extraordinary conservation on revenues and rates; and Bay Delta improvements. Director Pocklington confirmed that MWD had approved adding fluoride to the treated water beginning in October or November.

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

A. Director Pocklington made a motion, seconded by Director Alkire, that the Governing Board approve per diem for Director Doud’s attendance at the reception for David Garcia, Chula Vista City Manager, sponsored by Crossroads II on August 10, 2007. The motion carried with Director Morrison opposing.
B. ACWA Regions 9 and 10 Surface Storage and Delta Summit on September 13-14, 2007 – Grand Pacific Palisades Resort & Hotel, Carlsbad, CA. Directors wishing to attend this pre-approved event will contact the secretary. No action was required by the Governing Board.
C. Director Doud made a motion, seconded by Director Morrison, that the Governing Board approve per diem for Directors who wish to attend the South County Economic Development Council Third Annual Reception for Elected Officials on September 20, 2007, at Bayside Park, Chula Vista, from 4:00 – 6:00 p.m. Directors wishing to attend this event will contact the secretary. The motion carried.
D. ACWA Continuing Legal Education Workshop for Water Law Professionals on September 20-21, 2007 – Hilton Pasadena. There was no interest expressed in attending this workshop. No action was required by the Governing Board.
E. Bonita Fest – September 29, 2007, 9:00 a.m. to 5:00 p.m. Directors wishing to represent the Authority at this pre-approved event were requested to place their names on the sign-up sheet. No action was required by the Governing Board.

8. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Doud attended the CSDA Planning Committee meeting on August 8th in Sacramento. The Committee made recommendations to the Executive Board and there was nothing to report at this time.

Director Thomas stated that the Chula Vista Lemon Festival on August 12th was an exciting event and a great way to promote careers and leadership in water. She also enjoyed the interaction with Authority staff manning the booth. She added that, because of the hot weather, many people took advantage of the water tank. Director Pocklington noted that CWA also had representatives at the event. Director Welsh reported that she had a conversation with a gentleman who was very upset with the Authority and claimed that boating opportunities on Sweetwater Lake had been promised, but had not been provided. Director Doud added that he received five color, taste, and odor complaints, all of which came from individuals who live close to the desalination plant. He said that he reported the concerns to General Manager Bostad who informed him of the iron and manganese problem, which may be the cause of this problem, and that the problem is being addressed. Director Alkire said he enjoyed having CWA there as well. Director Doud stated that the staff manning the CWA booth directed any political questions from the public to him.
Director Morrison reported on the National City Chamber of Commerce meeting on August 15th at which Congressman Filner gave a presentation on community involvement as well as domestic and foreign war policy.
Directors Pocklington and Welsh attended the Carlsbad State of the City meeting focusing on the Carlsbad Desalination Plant on August 16th. Director Pocklington said it was a first class meeting, and he was able to talk with Congressman Bilbray and Mayor Bud Lewis. He said desalination is moving along and, with the support of the Coastal Commission in November, hopefully we will have desalination within the county by 2010 or 2011. Director Welsh said that Carlsbad Mayor Bud Lewis was very appreciative of Sweetwater Authority’s presence at the meeting.
Director Beauchamp reported that the LAFCO program at the CSDA Quarterly Meeting on August 16th was very interesting. Commenting on the Draft Profiles of Special Districts in San Diego County, he was surprised to learn that Coachella Valley contains a large portion of northeastern San Diego County. Director Thomas noted that there were inaccuracies on the South Bay Irrigation District and Sweetwater Authority pages. General Manager Bostad said that part of the confusion is that South Bay is the special district and the Authority is the operating entity. Staff is reviewing the document and will be submitting changes to LAFCO.
Director Doud reported on the Council of Water Utilities meeting of August 21st. The presentation was given by the executive director of the Colorado River Board. He found it interesting that they only have three percent evaporation. Director Beauchamp noted that the Upper Basin has more to contribute than the Lower Basin.
Director Thomas reported on the Bonita Business and Professional Association meeting of July 24th. She noted that the First Annual Bonita-Sunnyside Library Job Fair will be held on September 11th. She provided a flyer for the Authority’s Human Resources Section and suggested that they make the South County Career Center aware of job availabilities and internship requirements at the Authority. County Supervisor Greg Cox gave a State of Bonita address on July 25th. The next meeting is on August 28th and will feature a presentation by the Bonita-Sunnyside Fire Protection District on the past, present and future.

9. BUDGET REPORT – DIRECTOR OF FINANCE FARROW
Report as of July 31, 2007

Director of Finance Farrow reported that Water Revenue for July was $415,000, or 12.2 percent, under budget. It is believed that the reduction in water consumption is related to the 20-Gallon Challenge, but there is not enough information yet to make that determination. The Water Rate Reserve Study is still in process, and the consultant is looking at drought rates and addressing some of the financial issues with regards to conservation. The results of this study will likely be brought back to the Board for further action the end of September. Operating Expenses for July were $274,000, or 9.6 percent, under budget. General Manager Bostad explained that, with less demand on the Authority’s water supply, less imported water is being bought or treated, which reduces expenses.

10. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Mr. Rogers displayed a photo of the baby burrowing owls, which are now almost adult size. Chair Beauchamp expressed concern regarding the use of copyrighted photos. Staff will look into this issue and report back to the Board.
B. Report of General Manager Bostad: Mr. Bostad reported that Authority staff recently attended a San Diego Taxpayer Association presentation. When asked what he believes MWD’s water condition may be next year, Peter Silva stated that we may lose the Delta; the worst case is a 55 percent cutback from MWD. According to Maureen Stapleton, the impact on CWA would be a net reduction of 35 percent due to lining the canals in Imperial Valley and the water transfer. Authority staff is working with CWA to see what the actual cutback would be to the Authority under today’s conditions and with the use of the Authority’s local supplies. Mr. Bostad said that, with a lot of perseverance, the local projects the Authority is undertaking will make a significant difference in Sweetwater Authority’s future.

11. DIRECTORS’ COMMENTS

Director Doud stated that last week Director Morrison made the last page of Sports Illustrated, and this week he made the front page of the San Diego Metropolitan, copies of which Director Doud distributed to the Board. He also read two humorous quotes from W.C. Fields and Michael McClary.
Director Pocklington commented that he attended his brother’s funeral. Over 300 people attended the ceremony, and he thanked the staff and directors who had given their support with cards and email.
Director Thomas stated that, at the last Board meeting, she mentioned meetings of the Southwest Civic Association and the Northwest Civic Association with programs on water conservation. She requested that announcements relating to water be a part of the recorded minutes. She announced that on August 30th the U.S. International Boundary Commission (USIBC) is having a public hearing and a citizen’s forum meeting in which she participates. The public hearing will be on the Draft Programmatic Environmental Impact Statement (EIS) for the Tijuana River Flood Control Project. The forum agenda included presentations on sanitation projects in Tijuana and the Phase 2 Ocean Monitoring Study on pollution of the San Diego Bay. She provided the EIS table of contents as well as agenda and website information to the Secretary for interested staff and directors. Director Thomas stated that she did not participate in the Carlsbad State of the Union event because she attended the 25th anniversary of the Tijuana River National Estuarine Research Reserve. She recapped the event and left a program with the Secretary for anyone interested.

12. CLOSED SESSION
There was none.

13. ADJOURNMENT

With no further business before the Board, Chair Beauchamp adjourned the meeting at 5:25 p.m.