minutes

Regular Meeting

Governing Board of Sweetwater Authority

August 23, 2006

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, August 23, 2006, 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, Morrison, Pocklington, Salas 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: Pete Famolaro, Janet Gonzalez, Bill Olson, George Silva, Don Thomson, Jim Smyth, and Tom Woodrum. Also present: Randy Hill, CH2M Hill

• PLEDGE OF ALLEGIANCE TO THE FLAG

Director Doud 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

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA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 Doud made a motion, seconded by Director Beauchamp, that the Governing Board approve the minutes of the August 9, 2006 meeting. The motion carried with Director Salas abstaining due to her absence from the meeting.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve Warrants 106459 through 106614 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of August 21, 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 Doud, that the Governing Board approve the Fiscal Year 2006-07 Final Budget subject to a 6.1 percent rate increase effective January 1, 2007. Director Doud stated that he appreciated the addition of the section on deferred items and that he agrees with them. Director Salas suggested that next year’s budget process include additional backup information on the potential savings the proposed deferred programs might have if they were implemented.

Counsel Cowett clarified that this motion was to approve the budget subject to a 6.1 percent rate increase effective January 1. The motion is not for approval of the rate increase or an expression of agreement to a rate increase. The rate increase process will be coming forward in accordance with proper statutory procedures. Following the Public Hearing on the rate increase, if the Board decided not to approve the rate increase or increase it by more than 6.1 percent, it would result in an amended budget. The motion carried.
C. Director Alkire made a motion, seconded by Director Pocklington, that the Governing Board authorize staff to proceed with consultant interviews for the Robert A. Perdue Water Treatment Plant construction management project and the Membrane Bioreactor Feasibility Study project. Director of Engineering Smyth said the Perdue Plant project is scheduled for completion in September 2009. Director Doud expressed concern regarding the approval of two separate consultant selection projects in one agenda item and requested that, in the future, separate memos be presented to the Committee and the Board with recommendations. General Manager Bostad agreed and apologized for the confusion. He said that staff is requesting authorization to move forward with the consultant interview process, and that staff’s evaluations and recommendations will be brought back to the Board separately for final approval. The motion carried.

D. Director Alkire made a motion, seconded by Director Doud, that the Governing Board authorize the General Manager to execute the Amendment to Joint Powers Agreement Creating the Water Conservation Authority to add the Sweetwater Authority as an Agency Member, and that Director Beauchamp be appointed as Director, and Director Alkire as Alternate to the Water Conservation Garden Authority Board of Directors. General Manager Bostad noted that Sweetwater Authority will become an official voting member in the Garden effective January 1, 2007 and participation until then is for informational purposes. The motion carried.

E. Director Alkire made a motion, seconded by Director Welsh, that the Governing Board approve the Fiscal Year 2006-07 Staff Utility Membership Renewal in the American Water Works Association and payment of dues in the amount of $4,400. The motion carried.

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

Chair Pocklington gave an overview of agenda items for the August 24th CWA Board meeting. The Legislation, Conservation, and Outreach agenda includes an update report on current bills from Carpi and Clay; adoption of a position to support SB 3639 (Feinstein) and HR 5767 (Napolitano), which deals with federal funding for water reuse, reclamation and groundwater projects; a recommendation from the Board Conservation Ad Hoc Committee regarding corporate partnership at the Quail Botanical Gardens not to exceed $10,000; a presentation on the Green Village; and a Water Conservation Summit update from Mark Weston, Helix Water District. In anticipation of LAFCO’s conditional approval of the detachment and consolidation of Lakeside and Riverview Water Districts into a single entity, the Water Planning agenda includes adoption of a resolution granting Lakeside Water District’s application to become a separate unit of CWA and fixing terms and conditions. Counsel Cowett provided history on this issue and the LAFCO process to consolidate the two agencies and detach them from Padre Dam MWD. Also on the Water Planning agenda is the adoption of a resolution certifying the final environmental impact report for the Mission Trails Flow Regulatory Structure II, pipeline tunnel and vent demolition project and supporting processes, as well as a status report on the Sycuan Indian Band effort to secure additional water. The Imported Water agenda includes MWD Delegate reports; the MWD Integrated Area Studies effort; an update on MWD’s Diamond Valley Lake Recreation Program; a report on the status of the Lower Colorado River Basin shortage guidelines and coordinating management strategy for Lake Powell and Lake Meade; and an update on the Quantification Settlement Agreement. Director Pocklington added that Bud Lewis, Mayor of the City of Carlsbad, is stepping down from the MWD Board, and a vote will be taken to replace him with CWA Chairman James Bond.

Director Pocklington noted that the CWA Board will also consider adoption of the Rate Model Work Group Financial Policy Proposal to amend the CWA financial policy regarding the Rate Stabilization Fund and the Debt Service Coverage Ratio. They have come up with a program to increase the water rates over the next three years by one percent to bring those funds back up to insure AA or a AAA bond funding. General Manager Bostad said that one of CWA’s concerns is that bond ratings are affected by water sales revenue, which is variable based on local rainfall and the filling of local reservoirs. Over an eight to 12-month process, The Rate Model Work Group encouraged building up reserves to deal with the rate variability, which is beneficial for Sweetwater Authority and other local resource agencies.

For the benefit of the two National City Directors, Director Alkire noted that at its meeting of August 21st, the South Bay Irrigation District Board reappointed Director Pocklington for a six-year term at the CWA, and this action will be finalized by resolution at South Bay’s September 18th Board meeting.

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

A. Director Pocklington made a motion, seconded by Director Welsh, that the Governing Board approve the payment of per diem for Director Beauchamp’s attendance at the South Bay Irrigation District meeting of August 21, 2006 and the Presentation: “Green Village – An Eco-Friendly Community for National City.” The motion carried.

B. Sweetwater Authority Leader Tour – Richard A. Reynolds Desalination Facility – Friday, September 8, 2006, 11:30 a.m. to 3:30 p.m. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

C. WaterReuse 2006 Annual Symposium - September 10-13, 2006, Renaissance Hollywood Hotel, Hollywood, CA. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

D. Director Welsh 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 Second Annual Elected Officials Reception – September 14, 2006, Promenade in Coronado, 4:00-6:30 p.m. The motion carried.

E. AB 1234 Ethics Training – San Diego County Water Authority, Kearny Mesa Office, September 14, 2006, 1:30 to 3:45 p.m. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

F. American Water Works Association Research Foundation 2006 Water Quality/Regulatory Conference – October 11-13, 2006, Doubletree Hotel, Ontario, CA. No action was taken by the Governing Board.

7. REPORTS BY DIRECTORS ON EVENTS ATTENDED

All Directors attended the Lemon Festival and believed it was a well-received event. Director Alkire suggested that some additional fastening device be used on the display boards to prevent them from blowing over. Director Welsh suggested that handouts be more evenly distributed during the course of community events, as supplies ran short as the day progressed. General Manager Bostad assured that future events will be stocked sufficiently. Director Beauchamp said that the water tank is definitely a winner at these events.

Director Beauchamp attended the National City Chamber of Commerce meeting on August 16th. He said it was a well-attended meeting, and the proposed stadium deal with the Charger organization was a main focus, although not considered to be a benefit to the City. The Green Village project was another topic of interest as a new corporate member.

Director Doud reported on the CSDA, San Diego Chapter Quarterly Meeting on August 17th. One of the CSDA San Diego Chapter Board members reported receiving feedback that it was one of the best meetings in a long time, and attendees were impressed with the speakers. Director Welsh appreciated the information presented by Steve Peace and Art Madrid. Chair Pocklington said that both panel speakers sat at his table and they had good conversations about growth and other current issues.

8. QUARTERLY REPORT OF DIRECTORS’ EXPENSES – 4TH QUARTER 2005-2006

This spreadsheet report was provided to the Board for information purposes and there were no comments from the Board.

9. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Operations Manager Rogers reported that there were approximately 3,000 backflow devices in the Authority’s system. Almost four months ago it was discovered that thieves were stealing the backflow devices for the copper and brass content. Notices were sent to all customers with backflow devices suggesting that they paint the backflow devices in order to drop the value of the scrap metal for reclamation purposes. The Authority has had 12 devices taken, Otay Water District 75 devices, and the City of San Diego about 1,000 devices. Sweetwater Authority’s public service notice to customers regarding the thefts was being considered as a model by the Cities of San Diego and Otay Water District.

B. Report of General Manager Bostad: General Manager Bostad distributed CD copies of the Final Fiscal Year 2006-07 Budget to all Board members. Director of Finance Farrow gave the Board brief directions on how to use the CD and its links as a powerful search tool to navigate through the budget electronically. This is the unveiling of a higher technology presentation for the Authority’s budget. This will be available as a tool to all staff members on the Authority’s intranet website, and the process will be refined and improved upon in order to build on this type of technology in the future. As opposed to the cost of staff time and reproducing paper copies, creating the budget on CDs costs only 50 cents apiece. Director of Finance Farrow thanked all the staff involved in helping with the budget process, which took from March to August to complete. Director Morrison appreciated the electronic document, which is much like the medium used by CWA for its Board meeting agendas and the ease in storing it on a home computer. General Manager Bostad also noted the updated generic informational business cards distributed for the Board members’ use. He added that he will be a panel speaker at the Groundwater Resources Association meeting next month in San Diego addressing some of the Authority’s groundwater planning efforts.

10. DIRECTORS’ COMMENTS

Director Beauchamp said he appreciated the in-house efforts that went into producing the budget in electronic format and that it reflects the quality of the Authority’s leadership in this area. He noted that 38 years ago today the President of the United States made him an officer and a gentleman.

Director Doud read a quote from Rosa Luxemburg: “We will be victorious if we have not forgotten how to learn.”

11. CLOSED SESSION

There was no need for one.

12. ADJOURNMENT

With no further business before the Board, Chair Pocklington adjourned the meeting at 4:31 p.m., to the hour of 6:00 p.m. on September 13, 2006.