minutes

Regular Meeting

Governing Board of Sweetwater Authority

August 24, 2004

The Governing Board of Sweetwater Authority held an adjourned regular meeting on Tuesday, August 24, 2004, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Doud called the meeting to order at 3:30 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, Mary Ann Mann, Bill Olson, George Silva, Jim Smyth, and Tom Woodrum. Also present was Robert Valderrama, National City representative to the San Diego County Water Authority.

· PLEDGE OF ALLEGIANCE TO THE FLAG
Chair 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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA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 Pocklington made a motion, seconded by Director Alkire, that the Board approve the minutes of August 11, 2004. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Reynolds made a motion, seconded by Director Alkire, that the Board approve Warrants 95831 through 95994 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of August 16, 2004)

A. Review of leak adjustment report for the period April 1 through June 30, 2004. This was an information item and no action was required by the Governing Board.

B. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board approve a variance in the Consultant Selection Policy and award a contract to Nolte and Associates, Inc., in an amount not to exceed $104,250 for the 2004-05 design survey and construction staking services for metallic main replacements. The motion carried.

C. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board accept the grant award from the San Diego County Water Authority, in an amount not to exceed $75,000, to complete a Recycled Water Master Plan. The motion carried.

D. Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve the final version of the Fiscal-Year 2004-05 Budget as presented. The motion carried.

NOTE: Director Inzunza entered the meeting at 3:34 p.m.

E. CLOSED SESSION
In compliance with Government Code Sections 54957.6 and 54957, the Committee recessed to convene in closed session to discuss labor negotiations and the employment evaluation of the General Manager and Operations Manager. There was no reportable action.

5. OPERATIONS COMMITTEE (Meeting of August 18, 2004)

A. Director Beauchamp made a motion, seconded by Director Alkire, that the Governing Board approve a contract to construct the Lynwood Hills "B" tank to Spiess Construction Co., Inc., P.O. Box 2849, Santa Maria, CA 93457, in the amount of $354,800. The Committee further recommends that $35,000 be available from the Unallocated Reserve Fund. The motion carried.

B. Discussion to approve proposed resolution supporting the repeal of the North County Recycled Solid Waste Disposal Initiative. The Committee requested that staff provide additional information on the subject at a future meeting. No action was required by the Governing Board at this time.

C. Field trip to San Diego Formation Well No. 6. The Committee toured the proposed San Diego Formation Well No. 6 and staff provided an overview of the project. This was an information item and no action was required by the Governing Board.

6. CONSULTANT SELECTION COMMITTEE (Meeting of August 19, 2004)

Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve the list of engineering firms to be interviewed on September 24, 2004, for the selection of one firm to complete a Recycled Water Master Plan. 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

Mr. Valderrama briefed the board on issues that will be discussed at the CWA Board meeting under the Public Affairs, Administrative and Legal, and Planning and Environmental Committees. Commenting on the annual SCOOP report, Mr. Valderrama stated that CWA staff exceeded the goals that they had set. There were 73 contracts this year with minority and women-owned businesses, which is a 16 percent increase over last year. They are recommending increasing the goals to 21 percent in 2005 and 23 percent in 2006. Also, the board will be ratifying the allocation of the grant to Sweetwater Authority along with other water agencies. With regards to a report on the binational activities, the recommendation is to approve the revised binational study work plan and exclude additional studies of a conveyance facility. This includes the completion of a joint seawater desalination facility study.

Director Pocklington reviewed items under the Engineering and Operations, Fiscal Policy, and Water Policy Committees that the Board will be discussing at the meeting on the 26th. These items included the Pomerado Pipeline 4 relining construction management services, the cathodic protection of the Ramona Pipeline phase I, and a procurement contract for the Olivenhain-Hodges ESP Pump Storage projects. A Public Hearing will be set on September 23rd to receive comments regarding a melded untreated M&I supply rate for water. Also discussed will be the long-range financing plan for 2004-2005 and the adoption of a resolution authorizing Certificates of Participation to borrow $550 million for the purpose of financing the Capital Improvement Program. They will also discuss the extension of a contract with the California Strategies, LLC for 12 months.

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

A. First Friday Breakfast - Assemblywoman Shirley Horton - September 10, 2004, at the San Diego Country Club. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve per diem for Directors who wish to attend this event. The motion carried.

B. Council of Water Utilities, San Diego County - Breakfast Meeting at Stoneridge Country Club - Tuesday, September 21, 2004 - 7:15 - 8:45 a.m. Directors Alkire, Beauchamp, Doud, Pocklington and Welsh will be attending this pre-approved event. No action was required by the Governing Board.

C. Water Education Foundation - Southern California Tour - October 6-8, 2004. Director Alkire may attend this pre-approved event. No action was required by the Governing Board.

Director Pocklington mentioned that there would be an MWD tour of the Colorado River on October 8-10, 2004 and he has no details on it at this point. He said that he would be providing more information on this tour as soon as he gets it.

9. REPORT OF TREASURER - WANDA AVERY

Ms. Avery was not present.

10. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Operations Manager Rogers complimented Information Systems Director Silva for receiving the "Most Artistic" award for his presentation on "Source of Supply Distribution" to the San Diego Geography Showcase a couple of months ago. This presentation showed how the water migrates from the National City Well Field, the desalination plant, and the Perdue Plant. He also mentioned that Mary Ann Mann, Director of Water Quality, had received her Grade 5 Water Distribution Operator Certification, which requires passing a very strenuous and difficult test. Also, Water Quality Superintendent Thomson scored the highest out of 486 people who took the Grade 3 Water Distribution Operator Certification test in the State of California.

B. Report of General Manager Bostad: General Manager Bostad reported having received a thank-you letter from SDG&E. The California Public Utilities Commission is dealing with potential shifting of up to $1 billion in energy costs from Pacific Gas & Electric and Southern California Edison to customers of San Diego Gas & Electric. We have participated by communicating with SDG&E to the California Public Utilities Commission that we did not think that was a good approach. Through the efforts of Senators, Assembly members, 18 cities within San Diego County, the County Board of Supervisors, etc., the Commission has postponed a decision one month. Hopefully we will be able to get them to change their perspective of shifting these funds.

Manager Bostad also referred to a letter received from Supervisor Greg Cox indicating that he was pleased to be a participant on opening day of Sweetwater Reservoir fishing program and stated his appreciation for our support in working together in a cooperative effort.

11. DIRECTORS' COMMENTS

Director Beauchamp said that on his way back from Nebraska, he flew over the Rio Grande in Northern New Mexico and there was no water in it. He also flew over the Verde River and the reservoir is way down. Lake Moreno looks a little better. Flying across the Midwest you realize that we have a serious problem.

Director Doud said, "If you want the rainbow, you have to put up with the rain".

12. CLOSED SESSION

There was no need for one.

13. ADJOURNMENT

With no further business before the Board, Chair Doud adjourned the meeting at 4:09 p.m., to the hour of 6:00 p.m. on September 8, 2004.