minutes

Regular Meeting

Governing Board of Sweetwater Authority

September 10, 2008

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, September 10, 2008, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California.

Chair Beauchamp called the meeting to order at 6:00 p.m.
• ROLL CALL
Directors Present: Alkire*, Beauchamp, Doud, Pocklington, Thomas, Welsh
Directors Absent: Morrison
Others Present: General Manager Rogers, Operations Manager Smyth, Legal Counsel De Sousa, Treasurer Farrow, and Board Secretary
Schoonderwoerd. Staff members: Jack Adam, Rick Alexander,
Hector Martinez, Bill Olson, Cindy Parra, George Silva, Don
Thomson and Dina Yorba.
• PLEDGE OF ALLEGIANCE TO THE FLAG
Chair Beauchamp 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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA
There were none.

2. APPROVAL OF MINUTES
Director Thomas made a motion, seconded by Director Doud, that the Governing Board approve the minutes of the August 27, 2008 meeting, as amended by Director Thomas. Under Public Comment, at the end of paragraph one, Director Thomas would like the following sentence inserted into the record. “Director Thomas asked Legal Counsel Cowett if the Registrar of Voters was the party required to determine property landownership. Mr. Cowett responded yes.” The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS
Director Thomas made a motion, seconded by Director Welsh, that the Governing Board approve Warrants 115507 through 115682 including all voided checks. The motion carried.

4. OPERATIONS COMMITTEE (Meeting of September 3, 2008)
A. Water Distribution System Master Plan Update 2007. * Note: Director Alkire entered the meeting at 6:04 p.m. Director Doud stated that the public would gain a great deal of understanding from the Water Distribution System Master Plan Update 2007 (Plan) if they could view it. Engineering Manager Martinez provided an overview of the Plan. The Plan was intended to update the system demands, assess current and future treatment capacity, assess distribution system improvements, and facilitate future budget planning. The process begins with obtaining population growth projections from SANDAG. Then, a review of the most current land use changes in the Cities of National City and Chula Vista and the County of San Diego that will have a large impact on the system per capita usage are used to calculate the existing and future water demands. In 1979, the per capita use was at 134 gallons per person per day, and in 1986 that went up to an all-time high of 151. During the drought in 1992 that number hit an all-time low of 105. After the drought was over, there was a gradual increase to 131 gallons per person per day in 2000. As people became more water wise, there was a slight decrease in consumption to the current 119 gallons per person per day.

Based on SANDAG data, the current population of 185,000 is expected to grow by approximately 22,000 in the year 2020, and by approximately 54,000 in the year 2030. The current average daily demand of 21 million gallons per day (mgd) is expected to go up to 28.44 mgd in the year 2030. Based on this projected demand, the Authority will need an additional 4.3 million gallons of storage (five new tanks); one pump station; and 12 miles of pipeline upgrades. The projected treatment capacity of 40 mgd will be adequate based on the Reynolds Plant expansion. The Plan also looks at the age and condition of the system. The average age of the pipelines in the system today is 37 years, whereas when the Authority took over the system in 1977, the average age was about 50 years. That is a drop in the average age of 13 years. In 1978, there were close to 195 leaks per year; by 2006 that number had dropped to less than 25, and should continue to go down as we invest in the infrastructure. Future expenditures for system improvements and age renewal are estimated at close to $100 million. This cost excludes the replacement of the 300 miles of asbestos cement pipe in the system, which is estimated to be $250 million. In conclusion, Mr. Martinez stated that we have increased population with densification; there are no major urgent infrastructure needs; the cast-iron pipeline program is nearing completion; and current funding levels should be maintained at approximately $4.5 million per year in order to keep the system in good operating condition. Mr. Martinez informed the Board that compact disks of the Plan are available. Director Welsh stated that when a Board member is challenged for approving a necessary rate increase, this is the kind of information that needs to get to the public regarding the reasons. General Manager Rogers added that he recently told a reporter that most of the dollars spent at Sweetwater Authority are not seen, but that they are in the ground. The message that Sweetwater Authority needs to convey is that we maintain and improve our system. He assured the Board that in a circumstance where we may have a pipe that is not high on the priority list, and if the city opens up a street, we would accelerate that replacement to get in there during a more ideal time.

Director Thomas suggested that small pieces of communication could be developed for the public so they can better understand the need for system improvements. Director Pocklington suggested this topic be addressed by the Communications Committee. Chair Beauchamp requested that staff explore the possibility of making the Plan available for viewing on the Authority’s website. Director Doud made a motion, seconded by Director Welsh, that the Governing Board adopt the Water Distribution System Master Plan Update 2007 as presented. The motion carried.

B. San Diego County Water Authority Storage Agreement. General Manager Rogers provided an update on the discussions with CWA. Negotiations to store imported water in Sweetwater Reservoir began in July, and yesterday staff met again with CWA representatives. A tentative one-year agreement of $43 per acre-foot for storage and treatment will be presented to the CWA Board on September 25th for approval. This same item will be taken to the Operations Committee meeting on September 17th and to the Sweetwater Authority Board on September 24th for consideration. Because every day that we delay in taking the water is another day we cannot put 30-60 acre-feet of water into our reservoir, and because we have a philosophical agreement, we have the opportunity to begin taking the water into the reservoir now before final approval by both Boards. The philosophy is that no one else will take that water right now, and CWA wants to move the water south now.

Director Pocklington stated that we are in such a critical water position, that the Board should allow this to be management’s prerogative. The Board agreed that this was a good opportunity. Attorney De Sousa noted that the Committee’s current recommendation only directs staff to continue negotiating a contract. Director Doud made a motion, seconded by Director Thomas, that the Committee’s original recommendation be amended and that the Governing Board authorize staff to continue to negotiate a storage agreement with the San Diego County Water Authority; bring the final agreement back to the Board through the Operations Committee for review and approval; and authorize staff to exercise the option to take the water prior to a formal settlement on the terms. The motion carried with Director Pocklington abstaining.

5. FINANCE AND PERSONNEL COMMITTEE (Meeting of September 8, 2008)
A. Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve the 2008 membership renewal in the Chula Vista Chamber of Commerce and the payment of dues in the amount of $150. The motion carried.
B. Director Welsh made a motion, seconded by Director Thomas, that the Governing Board approve the 2008 membership renewal in the California Special Districts Association – San Diego Chapter and the payment of dues in the amount of $150. The motion carried.
C. Director Welsh made a motion, seconded by Director Alkire, that the Governing Board award a contract in the amount of $25,016 to V&A Consulting, Inc., 8291 Aero Place, Suite 110, San Diego, CA 92123, for Phase II of the Cathodic Protection Feasibility Study. The motion carried.
D. Director Welsh made a motion, seconded by Director Doud, that the Governing Board award a contract in the amount of $16,468 to V&A Consulting, Inc., 8291 Aero Place, Suite 110, San Diego, CA 92123, for the Pipeline Cathodic Protection Fourth Corrosion Survey and the completion of an Assessment Report. The motion carried.
E. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board award a contract in the amount of $99,570.92 to Villa Ford, 2550 North Tustin Avenue, Orange, California 92865, for the purchase of two Ford F350 flat bed trucks and one Ford F350 chipper dump truck; and a contract in the amount of $123,104.10 to Pearson Ford, 4300 El Cajon Boulevard, San Diego, California 92105, for the purchase of one Ford F750 Dump Truck and two Ford F250 utility body 4x2 trucks, as part of the 2008-09 Vehicle Replacement Program. The motion carried.
F. Director Pocklington made a motion, seconded by Director Alkire, that the Governing Board approve the administration of personality tests for new hires to be used in conjunction with current hiring practices. General Manager Rogers clarified that personality tests are intended to be used for assessing the compatibility of new applicants only, specific to positions that will have interaction with the public. He added that this will not affect existing staff. Director Thomas stated that she did not feel comfortable with this practice for all positions and added that some people are really good at taking tests of this kind, and they will know exactly what buttons to push for a job. Director Alkire stated that this was discussed by the Committee, and it was agreed that this was just one tool in a big basket of tools and not THE tool used to hire people. Director Welsh noted that she was in favor of the motion with the understanding that this would not be used alone in the hiring of new employees. The motion carried with Director Thomas opposing.

6. REPORT OF SWEETWATER AUTHORITY DIRECTOR TO THE WATER CONSERVATION GARDEN AUTHORITY
Director Alkire reported that he was late arriving at today’s meeting because the Water Conservation Garden meeting started late. He said that it was reported that the directional road sign for the Garden is now up on Jamacha Boulevard. The Garden has had no luck in soliciting partnerships from Vista Irrigation District, Olivenhain MWD, or Lakeside Water District. Saturn Automobile has contributed $10,000. The Board of Supervisors contributed $25,000 for the amphitheatre shade, and that brings the total funds donated for the shade to about $100,000. Friends Board member Bill Verbeck contributed the “Verbeck Shuttle,” which is a golf cart available for special tours and for the physically challenged at events. Director Alkire noted that Sweetwater Authority has about 4 percent of the total attendance to date in this fiscal year (two months) with 238 visitors. San Diego has had 1,540; Otay Water District, 1300; Helix, 1,700; and 1,126 listed as “others.” The Board also discussed Southwestern College and distributed the memo Director Thomas sent before the meeting. Southwestern is doing a garden, but it is not a water conservation garden. The Executive Director will coordinate with Southwestern, talk to them further, and try to create some synergy.

7. NEW BUSINESS
A. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve the participation of any directors interested in serving on California Special Districts Association committees. The motion carried.
B. Metropolitan Water District State Water Project Inspection Trip. Director Pocklington announced that he would be sponsoring this upcoming inspection trip on October 17-19, 2008, which will also include the Sacramento/San Joaquin Delta. He stated that itinerary information would be forwarded to the Board members as it becomes available. If anyone is interested in participating on the trip, the deadline to sign up is September 26th.

8. APPROVAL OF DIRECTORS’ ATTENDANCE AT MEETINGS AND

FUTURE AGENDA ITEMS
A. California Special Districts Association Staying in Compliance Workshop – Friday, October 24, 2008, Fresno Irrigation District. A show of hands indicated there was no interest in attending this event. No action was required by the Governing Board.
B. Water Education Foundation 2008 Climate Change Summit “Managing Risk and Uncertainty” – November 13-14, 2008, Long Beach Hilton Hotel. Directors interested in attending this preapproved event will contact the secretary. No action was required by the Governing Board.

9. REPORTS BY DIRECTORS ON EVENTS ATTENDED
Director Doud reported on the CSDA Membership Committee Meeting on August 29th. He stated that membership and the retention program were discussed. The changes to bylaws for all new CSDA chapters in the future are still being discussed. Director Doud reported that the program for the First Friday Meeting of September 5th was the Bayfront by Pacifica. They are anticipating possibly putting in 1,000 units next to the Nature Center. Chair Beauchamp reported on the South County Economic Development Council meeting of September 9th. It was a busy meeting schedule due to having no meeting the month before. He stated that Supervisor Cox spoke about all the changes going on in the eastern Otay Mesa area. There was a presentation on Emergency Preparedness and the coordination for fire fighting activities. Chair Beauchamp also attended the Growing Green, Growing Healthy Symposium the same day. There were about 250 people in attendance, including many health professionals and planners, with interests in sustainable growth, water conservation, water reclamation, energy, carbon footprints, etc. They called for a unified voice to have a more cohesive coordination of efforts.

10. REPORT OF TREASURER
The investment portfolio and treasurer’s reports for the month of August 2008 were noted and filed. Ms. Farrow noted that these reports were provided as handouts at today’s meeting. Director Pocklington inquired, now that the government is taking over Fannie Mae and Freddie Mac, whether or not this would affect our investments. Ms. Farrow responded that she has heard more positives than negatives, but it is too soon to tell what will happen. It has been said that, if the government did not come in to help support those two agencies, it could be devastating to the foreclosure rates in the markets. She reassured the Board that the agencies the Authority has invested in have not been impacted by Freddie Mac and Fannie Mae.

11. MANAGEMENT REPORT
A. Report of Operations Manager Smyth: Mr. Smyth recognized Information Systems Director Silva for a map he created which has been presented in a book titled Design Maps. The map shows the water being distributed from the Reynolds Plant. He also reported that the Authority’s crews were servicing a leak in the Hilltop High School area and had to shut off the water. However, they were able to get them through the lunch hour before the school had to close early. Water will be restored this evening and school can resume in the morning.
B. Report of General Manager Rogers: Mr. Rogers played an audio phone message complimenting the excellent customer service a customer recently received from Customer Service Leadworker Jomar De Paz and other Authority staff. The customer thanked the Authority for responding so quickly and in such a helpful and professional manner. Director Doud shared a similar story about a customer who spoke to him about the excellent customer service experience he recently had with staff. Mr. Rogers also asked Administrative Services Director Yorba to share an experience she had with a prospective employee. The applicant was not selected; however, Ms. Yorba was so impressed with this person that she called him back into the office to talk to him about his strengths and weaknesses. The applicant told her he had also interviewed for a position at another agency, but the atmosphere there was not welcoming. In contrast, he stated that the atmosphere at Sweetwater Authority, from the first to the last person he talked to, was so much more pleasant. He commented on how hospitable customer service staff was to him while he waited for his interview. He said he would like to work at Sweetwater Authority and would continue to seek employment here.

12. DIRECTORS’ COMMENTS
Director Pocklington commented that he saw on the National Geographic channel that over 40 percent of the world’s population does not have an inside bathroom; that is over two billion people. He added that he has a friend in Colorado who just paid his highest two-month water bill ever, which was $96 for 62,000 gallons of water. Director Pocklington’s rough calculations figured that he would pay over $400 for the same bill, but he asked staff to figure the true cost of that water using the tier system. He noted that people take water for granted, especially those not living in southern California. Director Thomas commented that she wrote a quick memo to the Water Conservation Garden today regarding the Southwestern College item on the agenda. She summarized four areas of interest: to improve accessibility and participation in the programs, both of the Garden and the WaterWorks program, by utilizing facilities closer to public transportation and the participant’s home; reduce travel by offering cyber classes; consult with Bill Homyak and Meredith Sinclair concerning possible collaborations with the botanical garden at Southwestern College; and include K-20 (kindergarten through university) technical education outreach making use of other stakeholders. Copies of the full text of the memo were provided to the Board members for their information. Director Thomas added that she appreciates the extra time that Directors Beauchamp and Alkire put in as members of the Garden’s Board, especially attending meetings on the same day as the Authority’s Board meetings.

13. CLOSED SESSION
At 7:43 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,
Management Team, Legal Counsel, Administrative Services Director, Human Resources Coordinator and Board Secretary. There were no minutes taken, and the session was not tape-recorded.
At 7:46 p.m., Chair Beauchamp declared the meeting to be in open session. No reportable action was taken by the Governing Board.

14. ADJOURNMENT
With no further business before the Board, Chair Beauchamp adjourned the meeting at 7:46 p.m.