minutes

Regular Meeting

Governing Board of Sweetwater Authority

September 13, 2006

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, September 13, 2006, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Pocklington called the meeting to order at 6:01 p.m.

• ROLL CALL

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

Directors Absent: Morrison and Salas.

Others Present: General Manager/Treasurer Bostad, Operations Manager Rogers, Legal Counsel de Sousa, Treasurer Delegatee Farrow, and Board Secretary Schoonderwoerd. Staff members, Rick Alexander, Scott McClelland, Troy Murphree, Bill Olson, Jim Smyth, and Tom Woodrum. Also present: David Padilla, Otay Water District; Mary Woods; and Emilio Sierra.

• PLEDGE OF ALLEGIANCE TO THE FLAG
Chair Pocklington conducted the pledge of allegiance to the flag.

• OPPORTUNITY FOR PUBLIC COMMENT (Government Code Section (54954.3)
Director Beauchamp introduced Emilio Sierra, a student at Southwestern College.

• CHAIR’S PRESENTATION
There was none.

ACTION CALENDAR ITEMS

1. ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA
William Floyd of Best Best & Krieger LLP was not present for the Closed Session under Item 2. Director Doud made a motion, seconded by Director Welsh that the Closed Session be reordered on the agenda to Item 14 B, and that Legal Counsel Paula de Sousa be substituted as Agency Negotiator. The motion carried.

2. CLOSED SESSION

Conference with Labor Negotiator has been reordered to Item 14 B on the agenda.

3. APPROVAL OF MINUTES

Director Beauchamp made a motion, seconded by Director Alkire, that the Governing Board approve the minutes of the August 23, 2006 meeting. The motion carried.

4. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Beauchamp, that the Governing Board approve Warrants 106615 through 106920 including all voided checks. The motion carried.

5. OPERATIONS COMMITTEE (Meeting of September 6, 2006)

A. CLOSED SESSION
In accordance with Government Code Section 54956.8, the Committee met in Closed Session to confer with the Operations Manager regarding real property matters. There was no reportable action.

B. Upon a motion made by Director Beauchamp, seconded by Director Alkire, the following resolution:

RESOLUTION 06-12

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY ADOPTING THE INTERIM HABITAT LOSS PERMIT FINDINGS FOR THE
ROBERT A. PERDUE WATER TREATMENT PLANT MASTER PLAN
FOR FUTURE FACILITIES

was passed and adopted by the following vote to wit:

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

NOTE: Director Morrison entered the meeting at 6:06 p.m.

C. Director Beauchamp made a motion, seconded by Director Doud, that the Governing Board authorize access by Otay Water District to cross Authority property, contingent upon Otay Water District’s execution of an Entry Agreement with the Authority. The motion carried.

D. Director Beauchamp made a motion, seconded by Director Welsh, that the Governing Board award a contract in the amount of $77,508.89 to Hidden Valley Pump System, Inc., 31248 Valley Center Road, Valley Center, CA 92082, for the rehabilitation of San Diego Formation Well No. 5, and that additional funding in the amount of $7,550 be allocated from the Repair and Replacement Reserve Fund to cover the deficit. The motion carried.

E. Director Beauchamp made a motion, seconded by Director Alkire, that the Governing Board award a contract in the amount of $388,344 to Cass Construction, Inc., P.O. Box 309, El Cajon, CA 92022-0309, for the replacement of the existing mains and laterals with PVC material and support by a concrete reinforced pad in Main Street, Chula Vista. The City of Chula Vista will reimburse the Authority for 50 percent of the actual cost upon completion of the Authority’s work. The motion carried.

F. Director Beauchamp made a motion, seconded by Director Welsh, that the Governing Board approve funding in the amount of $69,500 from the Repair and Replacement Reserve Fund for the removal and reinstallation of the 30-inch transmission main on Second Avenue, Chula Vista, with the work being performed by the Authority’s time and materials contractor, Cass Construction. The City of Chula Vista will reimburse the Authority for 50 percent of the actual cost upon completion of the Authority’s work. Director Doud expressed concern about whether this type of project is a street improvement and what the basis is for cost sharing. General Manager Bostad indicated that staff would review the basis for cost sharing in Chula Vista and have legal counsel review prior to feedback to the Board. The motion carried.

G. Director Beauchamp made a motion, seconded by Director Welsh, that the Governing Board approve funding in the amount of $146,000 from the Repair and Replacement Reserve Fund for the water facility modifications on Central Avenue, Bonita, with the work being performed by the Authority’s time and materials contractor, Cass Construction. The County of San Diego will reimburse the Authority $42,000 (adjusted to actual costs) for its share of the proposed work. Relative to Item F, staff will review the basis for cost sharing in Bonita and have legal counsel review prior to a response to the Board. The motion carried.

6. COMMUNICATIONS COMMITTEE (Meeting of September 11, 2006)

A. Discussion on plans recognizing Sweetwater Authority’s 30th Anniversary in 2007. Director Doud expressed his concern about the unreliability of general delivery practices of The Star News to all residents in the service area and the benefit to the Authority in using this medium. This was an information item and no action was required by the Governing Board.

B. Advertising partnering opportunity with Otay Water District in The Star News. Director Welsh reported that the ad in The Star News would promote participation by the Authority and Otay Water District in the efforts of the Water Conservation Garden. General Manager Bostad said that if the Board agreed to the style and content of the ad, staff would request an audit response from The Star News as to its delivery process and how broad an audience would be reached. He added that The Star News has been the most effective message vehicle in the South Bay, but that other newspapers could be considered in the future.

Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve Sweetwater Authority’s partnership with Otay Water District in a joint ad in The Star News promoting fall water saving tips and participation in the Water Conservation Garden at a cost of $498.62 to be shared with Otay Water District. The motion carried.

C. Follow-up oral report on Chula Vista Nature Center Project. General Manager Bostad said that the Authority is developing a greater presence at the Chula Vista Nature Center through the interactive watershed exhibit, carrying a message of commitment to balancing the use of local water resources within environmental constraints. It provides an opportunity to educate the public on watershed and watershed oriented approaches to solving local water resource problems. This was an information item and no action was required by the Governing Board.

D. Consideration of sponsorship of the Association of California Water Agencies Fall Conference. Chair Pocklington suggested that the Board consider a sponsorship when the ACWA Conference is hosted in San Diego. Director Welsh made a motion, seconded by Director Doud, that the Governing Board decline sponsorship of the Association of California Water Agencies 2006 Fall Conference. The motion carried.

E. 2006 calendar of scheduled events for fall 2006. Director Welsh reported that the number of Leader Tours will be reduced due to fallen levels of participation. There has been more interest in the newer Environmental Tours. This was an information item and no action was required by the Governing Board.

7. FINANCE AND PERSONNEL COMMITTEE (Meeting of September 12, 2006)

A. CLOSED SESSION
In accordance with Government Code Section 54957.6, the Committee met in Closed Session to confer 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 award a contract in the amount of $57,335 to Palencia Consulting Engineers, 2837 Lemonwood Court, Fullerton, CA 92835, for consulting services to complete the watershed sanitary survey, and that funding in the amount of $2,335 be available from the Repair and Replacement Reserve Fund to cover the projected deficit. The motion carried.

C. Director Alkire made a motion, seconded by Director Welsh, that the Governing Board approve the modifications to the Sweetwater Authority Supplement to the Rates and Rules to reflect the new capacity fees as adopted by the Board through Resolution 06-10 on August 9, 2006. The motion carried.

8. NEW BUSINESS

There was none.

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

A. Director Alkire made a motion, seconded by Director Welsh, that the Governing Board approve per diem for Directors who attended the City of Chula Vista State of the City Address on September 12, 2006. The motion carried.

B. Council of Water Utilities, San Diego County Meeting, StoneRidge Country Club, Tuesday, September 19, 2006, 7:15 a.m. – Program: State Senator Denise Moreno Ducheny, “Maximizing Support for Water Projects.” Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

C. Bonitafest, Saturday, September 30, 2006, 9:00 a.m. – 5:00 p.m. Directors wishing to staff the Authority’s booth for this pre-approved event will add their name to the sign-up sheet. No action was required by the Governing Board.

D. Water Education Foundation 2006 Southern California Tour – October 25-27, 2006, Ontario, CA. Directors wishing to attend this pre-approved event will contact the Secretary. General Manager Bostad noted that the Authority’s Reynolds Desalination Facility will be on the agenda for this tour on Friday morning, October 27, 2006. When more information is available, Board members will be notified should they care to participate. No action was required by the Governing Board.

10. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Welsh reported on the Urban Water Institute Conference held on August 27-29, 2006. She said the event was outstanding, including the speakers and the participation. She encouraged all Board members to attend future Urban Water Institute conferences. Director Beauchamp attended as well and expressed his concern about the jeopardized water supply and lack of action in addressing the Delta’s problems regarding valuation of the farms versus the available resources. Chair Pocklington added that approximately $40 billion dollars worth of bonds will be voted on this year, and these are good points for him to bring up at MWD.

Director Doud reported on attending the First Friday Breakfast on September 1st. Supervisor Greg Cox welcomed Maureen O’Connor, who provided a demonstration on the benefits of automated defibrillators. A similar demonstration prompted Sweetwater Authority to acquire defibrillators several years ago. Director Doud also attended the CALAFCO Annual Conference on September 5-7, 2006. He received a good deal of feedback from special districts in other counties and how to get more involvement. Chair Pocklington also attended and added that over 300 were in attendance from all over the state. He said that cost is a consideration in involvement for special districts throughout the state.

Director Doud attended the City of Chula Vista State of the City Address on September 12th. He sat with Senator Ducheny and was introduced to the Consul General of Mexico, who had a good deal of questions regarding Sweetwater Authority and its projects. He noted that there were demonstrators in attendance requesting support for seniors residing in the mobile home park adjacent to the Chula Vista DMV, which is in bankruptcy. The Mayor and City Council are going to help them resolve some of their concerns.

11. BUDGET REPORT – DIRECTOR OF FINANCE FARROW
Report as of June 30, 2006

Director of Finance Farrow reported that at the end of the 2005-06 fiscal year, Water Sales were below the projected amount by approximately $876,000 due to lower consumption. Other Income was under budget by approximately $935,000 due in part to about $360,000 in grant revenues that were not received before the end of fiscal year 2006 and about $500,000 from Caltrans, which is expected to come in this fiscal year. Interest Income was approximately $450,000 more than what was projected. Interest rates are leveling off and it appears that they are holding with the Fed funds at about 5.25 percent, and the prime rate is at 8.25 percent. Operating Expenses were over budget by $18,000. She noted that approximately $3 million in Capital Projects were carried over into the new budget.

12. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: There was no report.

B. Report of General Manager Bostad: General Manager Bostad reported that staff participated in National City’s Bayfront Expo and Concert at Pepper Park in National City on September 9th. The purpose was to evaluate whether or not it would be valuable to have Board involvement in the future, and staff reported that it was a very effective event. Part of the problem is that many of these events occur at the same time of the year, so we are trying to find events that allow us to interact with the community at different times of the year. Mr. Bostad said he attended the Water Conservation Garden Board meeting earlier that day, even though the Authority will not be officially involved until January 2007. They spoke highly of Authority staff members who met with Marty Eberhardt to learn more about the Garden and how we can get more volume out of the education program and interaction with the Garden for our ratepayers. Finally, he mentioned the Health and Safety Fair taking place on September 14th at the Perdue Treatment Plant, if any Board members were interested. There will be a display and booth competition among departments, and Board members were invited to assist in the judging. Mr. Bostad said there is a positive spirit in the company, and employees are proud to show the unique types of work they do.

13. DIRECTORS’ COMMENTS

Director Doud read a quote from Benjamin Disraeli: “There are three kinds of lies: lies, damned lies, and statistics.”

Director Beauchamp commented that he had visited a condo project in Baja California with a consulting group that is going to provide reverse osmosis and sewage treatment. They are going to put up four thirteen story high-rise condominiums on the beach south of Descanso Bay. They don’t have the water down there, and he was reminded about the importance of reliability.

Chair Pocklington commented that Senator Murray, whose father sits on the MWD Board, came down from Sacramento to the MWD Board meeting yesterday. He was one of the sponsors of the $3 billion solar energy bill that the state passed, and it looks like it has opportunities for public agencies especially. He thanked the Senator for his support.
Mr. Bostad said that staff has contacted the City of Chula Vista to discuss their sustainability vision, and Michael Meacham may provide a presentation to the Board in the future. Director Pocklington mentioned that the San Diego Regional Energy Office was sponsoring Solar Week from September 24-30. Mr. Bostad said that someone from staff will attend the Solar Conference on September 27th.

14. CLOSED SESSION

At 7:03 p.m., the Board recessed to convene in Closed Session to discuss the following:

A. In compliance with Government Code Section 54956.8, conference with the Operations Manager regarding real property matters concerning a Sweetwater Authority future San Diego Formation Well on Kampgrounds of America property (Kampgrounds Enterprises, Inc.) and a proposal to acquire easements for a production well.

B. In compliance with Government Code Section 54957.6, conference with Legal Counsel Paula de Sousa regarding labor negotiations with the Sweetwater Authority Employees’ Committee.

All persons left the room with the exception of the Governing Board, Management Team, Legal Counsel, Director of Engineering, Administrative Services Director, and Board Secretary. There were no minutes taken, and the session was not tape-recorded.

At 7:35 p.m., Chair Pocklington declared the meeting to be in open session. There was no reportable action taken on either closed session item.

15. ADJOURNMENT

With no further business before the Board, Chair Pocklington adjourned the meeting at 7:35 p.m., to the hour of 3:30 p.m. on September 27, 2006.