minutes

Regular Meeting

Governing Board of Sweetwater Authority

OCTOBER 11, 2006

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, October 11, 2006, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Pocklington called the meeting to order at 6:00 p.m.

• ROLL CALL

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

Directors Absent: Morrison.

Others Present: General Manager/Treasurer Bostad, Operations Manager Rogers, Legal Counsel Cowett, and Board Secretary Schoonderwoerd. Staff members: Rick Alexander, Sue King, Scott McClelland, Bill Olson, George Silva, Jim Smyth, Kris White, and Dina Yorba.

• PLEDGE OF ALLEGIANCE TO THE FLAG
Director Welsh 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

Chair Pocklington announced that MWD had selected a new Chairman, Tim Brick, to take office in January 2007. Mr. Brick is from Pasadena and has been on the MWD Board for 15 years. They are looking forward to a good working relationship.

ACTION CALENDAR ITEMS

1. ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA
There were none.

2. APPROVAL OF MINUTES

Director Beauchamp made a motion, seconded by Director Alkire, that the Governing Board approve the minutes of the September 27, 2006 meeting. The motion carried with Director Doud abstaining as he did not attend the meeting.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Beauchamp, that the Governing Board approve Warrants 107111 through 107306 including all voided checks. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of October 2, 2006)

A. Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve the selection of RMC Water and Environment, 12707 High Bluff Drive, 2nd Floor, San Diego, CA 92130, as the consultant to prepare the Membrane Feasibility Study, and authorize staff to proceed with contract negotiations for the final scope and fee for the project, not to exceed the authorized amount of $150,000. Director Beauchamp inquired about site selection and how global warming with the potential for a higher sea level might affect that selection. General Manager Bostad said that the location is important in relationship to the availability of adequate sewage flows and the recycled water use area. He said the study results would be brought back to the Board for discussion and direction from the Board. The motion carried.

B. Tuition assistance plan costs. Director Alkire noted that this was an update on the tuition assistance plan costs to date. Chair Pocklington suggested that employees who achieve degrees through this program could be recognized at Board meetings periodically. This was an information item and no action was required by the Governing Board.

C. CLOSED SESSION
In accordance with Government Code Sections 54957.6 and 54957, the Committee met 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 October 4, 2006)

A. CLOSED SESSION
In accordance with Government Code Section 54956.9c, the Committee met in Closed Session to confer with legal counsel concerning anticipated litigation on one case. There was no reportable action.

B. Director Doud made a motion, seconded by Director Beauchamp, that the Governing Board approve the request by the City of Chula Vista to quitclaim the Kimball Brothers easement at 354 Church Avenue, Chula Vista, with the understanding that the owner will be responsible for all costs associated with processing the quitclaim. The motion carried.

C. Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve the request by the McMillin Family Trust to quitclaim the Kimball Brothers easement at 121 East 31st Street and 124-148 East 30th Street, National City, with the understanding that the owner will be responsible for all costs associated with processing the quitclaim. The motion carried.

D. Director Doud made a motion, seconded by Director Alkire, that the Governing Board award a contract in the amount of $62,841.52 to Villa Ford, 2550 North Tustin Avenue, Orange, CA 92865, and a contract in the amount of $67,950.37 to Raceway Ford, 5900 Sycamore Canyon Boulevard, Riverside, CA 92507, for the purchase of six utility vehicles. The motion carried.

6. General Manager Bostad noted that this item was brought back as an addendum to the contract approved earlier for the Middle Management Group to incorporate changes resulting from negotiations with the Employees Committee. Upon a motion made by Director Welsh, seconded by Director Doud, the following resolution:

RESOLUTION 06-14

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
AUTHORIZING CHANGES TO THE MEMORANDUM OF UNDERSTANDING BETWEEN SWEETWATER AUTHORITY AND THE SWEETWATER AUTHORITY MIDDLE MANAGEMENT GROUP

was passed and adopted by the following vote to wit:

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

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

A. Council of Water Utilities, San Diego County Meeting, StoneRidge Country Club, Tuesday, October 17, 2006, 7:15 a.m. – Program: Steven P. Erie, Professor of Political Science, Director of the Urban Studies and Planning Program, University of California, San Diego – “Beyond Chinatown: The Metropolitan Water District, Growth, and the Environment in Southern California.” Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

B. Water Agencies Association of San Diego County Quarterly Meeting, Four Points Sheraton San Diego, Thursday, October 19, 2006, 6:00 to 9:00 p.m. – Program: Glen Peterson, Assistant Utilities Manager, City of Escondido – “Fluoridation – The Rest of the Story.” Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

C. Legislative Roundtable with Assembly Republican Leader George Plescia at the San Diego County Water Authority – Friday, October 20, 2006, 7:30 to 9:00 a.m. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

D. Environmental Leader Tour – Friday, October 20, 2006, 8:30 a.m. to 12:45 p.m. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

E. Sweetwater Authority Leader Tour, Richard A. Reynolds Desalination Facility – Friday, October 27, 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.

8. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Doud reported on attending the CSDA Annual Conference on September 25-28. The numerous breakout sessions he attended were well presented. He said that the Board of Directors, Region 6, Seat A, election was won by Jo Mackenzie, the incumbent. The prestigious William Hollingsworth Award of Excellence, which honors individuals for their dedication to California Special Districts, was presented to Harry Ehrlich, Deputy General Manager of Olivenhain Water District and Past President of the CSDA Board of Directors. Mr. Doud announced that the guest speaker at the CSDA San Diego Chapter quarterly meeting on November 16th will be Andrew Vanderlaan, Chairman of LAFCO. Nominations and elections of officers will also be held.

Director Welsh reported on attending Bonitafest on September 30th. She thought the attendance was down from past years and they did not receive as many water-related inquiries. She also recommended seeing Max Branscom’s melodrama each year because he always includes Sweetwater Authority and water as part of the story. Director Doud said that Shirley Horton came over and talked to him and Director Pocklington.

NOTE: Director Morrison entered the meeting at 6:31 p.m.

Director Alkire said that he would be representing the Board at the Bonita Business and Professional Association, as the meetings conflict with Director Welsh’s teaching schedule. One thing he intends to comment on is that of the ten bands that marched in the parade, he only heard one play because they only play when they get down to the reviewing stand. Director Pocklington commented that the parade took more than two hours and parking was bad. He agreed with Director Welsh that they did not get the challenging questions that they have had in the past. The water tank is always utilized and people look forward to it when the weather is warm.

Director Salas reported that the South County Economic Development Council (EDC) meeting she attended on October 3rd was a very interesting meeting. Two items that came up for vote were to take positions on the Proposition 1A Miramar discussion and the Sweetwater High School District Bond. There was a very lively debate on the airport issue, and it became apparent that when other organizations took their votes they were always with very close margins and there is not a consensus within the San Diego area. The South County EDC Board voted with a split decision to abstain from taking a position. She personally thinks that the ballot is written very vaguely and that is why there is not support for the measure. She believes that we should be in a position to step forward and have some kind of understanding of what it would take to build an airport if the military leaves, so as not to be in the same position as when the El Toro base closed and there was no community consensus. The Sweetwater School Bond received a unanimous vote. Director Morrison said that even a new airport at Miramar would take at least 20 years to site and newer airplanes are wider bodied, quieter, and take off on shorter runways. He said that we cannot design the airport of the future for airplanes that will be antiques.

9. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Operations Manager Rogers reported on the annual Council of Water Utilities Customer Service Seminar, which was conducted by Sweetwater Authority since General Manager Bostad is Chair of the Council this year. He complimented Dina Yorba and Sue King and their staff for their efforts in putting together this year’s seminar. He understands it had the highest attendance ever, and it was very well received. He showed two video vignettes illustrating examples of bad customer service that were used at the seminar as discussion points. Customer Service Manager Yorba spoke about the seminar and said that everyone had fun and shared valuable tools and techniques. Eighteen agencies were represented, and she was proud that everyone came away with a good impression of Sweetwater Authority. The seminar touched on self image, dealing with conflict, and people sharing. Public agencies were able to share better than they could at seminars dealing with the private sector. Mr. Rogers also noted that the Insurance Service Office (ISO), which determines homeowners’ insurance rates, gave Sweetwater Authority the highest rating for serving the Bonita-Sunnyside Fire Protection District in Bonita. Next year, the ISO will look at Chula Vista and National City, which received high ratings in the past. He noted that Sweetwater Authority continues to set the standard in the way that we maintain our system.

B. Report of General Manager Bostad: General Manager Bostad said he had the opportunity to make the introductions each day at the Council of Water Utilities seminar. Attendance each day was approximately 100, and they hope to net about $7,000 over the two day period, which will go to scholarships awarded by the Council. On the Monthly Report of Activities, Director Alkire inquired about the higher cost of production at the Reynolds Facility this August compared to August 2005. General Manager Bostad said the higher unit cost is related to the lower amount of production. Typically, when production is down it costs more per acre-foot and that expanding production will help lower our unit costs.

10. DIRECTORS’ COMMENTS

Director Doud commented that while he was at the CSDA Conference recently, he learned that the state of Nevada has the same financial crisis as the City of San Diego. He related a story about a Northern California family that owned a property for generations on which they operated a tire repair shop. It was taken over by eminent domain and a Sears tire and repair shop was built. The Supreme Court took this case. He noted a recent newspaper article reporting that San Diego County was awarded a $2.9 million grant by the Federal Emergency Management Agency to fund a drainage improvement project as part of the Central Avenue flood control improvement project in Bonita. The project includes devices designed to insure proper flow of rainwater through the system. Construction is scheduled to begin in November and to be completed by September 2007. Mr. Doud read a quote from Teddy Roosevelt: “Far and away, the best prize that life has to offer is the chance to work hard at work worth doing.”

Director Beauchamp said that he attended the Water Conservation Garden Board meeting earlier today with Mr. Bostad. He said it provides a good forum for discussing conservation and other issues. He said that he, Director Salas and Director Breitfelder of Otay Water District were the only water officials at the South County Economic Development Council’s economic summit. He said that it was a good seminar, but it was not as well attended as it should have been. He added that the appointment of the National City representative on the Sweetwater Authority Board was on the agenda to be considered by the City Council at its meeting on October 17th.

Director Salas related a humorous customer service story about a neighbor’s experience with consecutive high water bills, and who mistakenly checked her SDG&E meter for unusual activity instead of her water meter. Once Director Salas helped her neighbor determine that she had a leak in her sprinkler system, she informed her about the Authority’s adjustment policy.

Director Pocklington commented that he had a similar experience when he heard water running between his house and his neighbor’s. Upon checking further, he discovered it was coming from his neighbor’s house, who was not home at the time. After informing his neighbor of his suspicion that he had a leak, a plumber came out and found the source. Mr. Pocklington also told his neighbor about how to apply for an adjustment.

11. CLOSED SESSION

At 7:03 p.m., the Board recessed to convene in Closed Session to confer with legal counsel regarding anticipated litigation on one case, in compliance with Government Code Section 54956.9c; the employment evaluation of the General Manager and Operations Manager, in compliance with Government Code Section 54957; and labor negotiations with the General Manager and Operations Manager, in compliance with Government Code Section 54957.6. 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 during the Closed Session on anticipated litigation under Government Code Section 54956.9c.

Director Morrison made a motion, seconded by Director Welsh, that the Board authorize the Chair of the Board to execute amended employment agreements with the General Manager and Operations Manager to provide for an increased salary, one-time bonus, and reimbursement for the cost of an annual executive physical. The General Manager’s annual salary will be $191,193, with a one-time bonus of $10,000, and reimbursement of up to $1,000 for the cost of an annual executive physical. The Operations Manager’s annual salary will be $172,074, with a one-time bonus of $9,000, and reimbursement of up to $1,000 for the cost of an annual executive physical. The motion carried.

12. ADJOURNMENT

With no further business before the Board, Chair Pocklington adjourned the meeting at 7:36 p.m., to the hour of 3:30 p.m. on October 25, 2006.