minutes

Regular Meeting

Governing Board of Sweetwater Authority

October 25, 2006

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, October 25, 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 and Pocklington.

Directors Absent: Salas and Welsh.

Others Present: General Manager/Treasurer Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Delegatee Farrow, and Board Secretary Schoonderwoerd. Staff members: Rick Alexander, Janet Gonzalez, Bill Olson, George Silva, Jim Smyth, Don Thomson and Tom Woodrum.

• PLEDGE OF ALLEGIANCE TO THE FLAG
Director Alkire 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

A. Employee Service Awards

Operations Manager Rogers introduced, and Chair Pocklington presented service awards to the following employees: for five years of service - Mark Rogers, Operations Manager; and Kris White, Accounting Manager;

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

for ten years of service - Mark Hatcher, Laboratory Supervisor; for 15 years of service - Gwen Balcom, Buyer II; Russ Collins, Engineer; Gregg Harpenau, Customer Service Supervisor; and Benny Wyndham, Water Treatment Plant Operator III; for 20 years of service - John Soto, Equipment Operator; and for 25 years of service - Jane Davies, Senior Planner.

B. Introduction of New Employees

Operations Manager Rogers introduced the following new employees hired in the last six months: Greg Bosley, Watershed Caretaker Trainee; Tim Bratcher, Business Systems Programmer; Justin Brazil, Chemist; Ruth Campbell, Water Quality Clerk; James Larsen, Utility Worker I; Micheal Sittler, Purchasing Supervisor; and Arturo Tejeda, Utility Worker I.

At 3:47 p.m. Chair Pocklington called a ten-minute recess for coffee and cake with the recognized employees. The meeting was called back to order at 4:03 p.m. with all members of the Board in attendance.

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 ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA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 Alkire, that the Governing Board approve the minutes of the October 11, 2006 meeting. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve Warrants 107307 through 107481 including all voided checks. Director Doud requested that staff bring back reports to the Board on the history and costs of the Authority’s workers’ compensation program since 2004 and the Authority’s water purchases from Otay Water District to operate the Urban Runoff Diversion System. The motion carried.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of October 16, 2006)

A. Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve the revised draft Notice of Public Hearing in accordance with Proposition 218 dated November 10, 2006; schedule a public hearing to be held on December 27, 2006 at 3:30 p.m. in order to consider a 6.1 percent overall water rate increase to balance the Fiscal Year 2006-07 Budget; and appropriate $40,000 from the Unallocated Reserve Fund to cover the estimated costs. Director Doud commented on the decision to go beyond the legal requirement of Proposition 218 to notify property owners and include all ratepayers in the service area. General Manager Bostad stated and Legal Counsel Cowett agreed that this seemed to be an appropriate direction to take in order to notify all ratepayers, not just landowners. The motion carried.

B. Director Alkire made a motion, seconded by Director Doud, that the Governing Board approve the selection of CH2M Hill, 402 West Broadway, Suite 1450, San Diego, CA 92101, as the consultant to conduct the construction management for the Robert A. Perdue Water Treatment Plant Improvements, and authorize staff to proceed with contract negotiations for the final scope and budget. The motion carried.

C. Director Alkire made a motion, seconded by Director Morrison, that the Governing Board authorize staff to proceed with the consultant interview process for the implementation of the MAXIMO Enterprise Asset Management System and present its findings and recommendations to the Governing Board for final approval. The motion carried.

5. OPERATIONS COMMITTEE (Meeting of October 18, 2006)

A. Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve the Letter of Intent to Poseidon Resources Corporation to purchase up to 2,400 acre-feet of supply on an annual basis from its proposed seawater desalination project. General Manager Bostad reported that the intent was for the Authority to continue to diversify its water supply resources and take a leadership role in encouraging the use of desalinated water in the future. This is a unique approach that would allow the purchase of up to 2,400 acre-feet of water, or about ten percent of the Authority’s average use. We would receive the water through an exchange partner agency that would receive water directly from the plant, and the water that they would have taken from CWA would be sent to the Authority for use. Staff and legal counsel will be working on a contract that will be brought back to the Board for consideration. They will explore flexibility in the contract for other exchange opportunities during times when the Authority’s dams are overflowing. Chair Pocklington agreed that participation in this program will help to encourage its overall success. The motion carried.

B. Update on the design status of the Robert A. Perdue Water Treatment Plant Improvements. This was an information item and no action was required by the Governing Board.

C. Field Trip to the Edwin J. Steele Operations Center to view the Vac-Truck. Director Doud said that the demonstration of the Vac-Truck was quite impressive and he believes this was a good investment. This was an information item and no action was required by the Governing Board.

6. NEW BUSINESS
There was none.

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

Director Pocklington gave an overview of agenda items for the October 26th CWA Board meeting. He noted that Tim Brick will assume the MWD Chairman’s position as of November 1st. Mr. Brick has tentatively agreed to speak at the Council of Water Utilities meeting on December 19th.

Upon pulling out of the Carlsbad project, a CWA staff report provided the following desalination options: complete the San Onofre Camp Pendleton Regional Desal Feasibility Study in combination with Orange County; evaluate other potential seawater desalination projects, some dealing with South Bay and the Tijuana region; explore and quantify the potential to develop smaller local seawater desalination and brackish water desalination projects; continue CWA’s efforts to secure outside funding for seawater desalination projects; and continue to advocate for seawater desalination at the statewide level.

Mr. Pocklington indicated that his reappointment to San Diego County Water Authority by South Bay Irrigation District for a term to expire on September 8, 2012 would be on the Board agenda.

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

A. California Special Districts Association, San Diego Chapter Meeting, November 16, 2006, 6:00 to 9:00 p.m. at the DoubleTree Club Hotel – Program: Elections of 2007 Officers and “The Future of LAFCO – 2007” with speakers Andrew Vanderlaan and Michael Ott, LAFCO. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

B. National Water Resources Association 75th Annual Conference, November 29 to December 1, 2006 at the Hotel Del Coronado. Directors wishing to attend this pre-approved event will contact the Secretary. No action was required by the Governing Board.

9. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Doud attended the First Friday Meeting on October 13th. The program included presentations on the Otay Ranch Eastern Urban Center by the McMillin Company and Proposition O by the Sweetwater Union High School District.

Director Pocklington reported on the Council of Water Utilities meeting of October 17th with a presentation by Steven P. Erie on his book, Beyond Chinatown, The Metropolitan Water District, Growth, and the Environment in Southern California. He said Dr. Erie gave an interesting talk, and he is looking forward to reading his book. He believes Dr. Erie is right from the standpoint that, with the growing population, it is going to be difficult to keep ahead of ensuring a reliable water supply that is available at a reasonable price.

Director Morrison attended the National City Chamber of Commerce meeting on October 18th, at which he participated in a Candidate Forum for the City of National City’s mayoral race.

Director Pocklington reported on the Water Agencies Association, San Diego County Meeting of October 19th with a program on fluoridation. He said that recently he read reports that the Europeans are giving up on fluoridation, and it would be interesting to know why.

Director Pocklington attended CWA’s Legislative Roundtable with Assemblyman George Plescia on October 20th. He said Mr. Plescia gave an interesting talk and is a person who probably can talk on both the Democratic and Republican side of the aisle. He has worked very closely with the Democratic Party and seems to be very knowledgeable. Director Morrison said it was very refreshing to find that one of the parties could put someone in place who could actually not be so split and could indeed work both sides of the aisle. He thinks that is encouraging, and we have not seen much of that lately up in Sacramento.

Director Doud attended the Sweetwater Authority Environmental Tour on October 20th, which hosted representatives from Otay Water District. He said Rick Alexander and Pete Famolaro provided a good program. General Manager Bostad added that this is another good example of Sweetwater Authority’s outreach capabilities.

Director Doud attended the Chula Vista Interagency Water Task Force meeting on October 23rd at which Michael Garrod, Sweetwater Authority Engineering Manager, gave a presentation on emergency storage and carryover storage.

Director Alkire reported on attending the Bonita Business and Professional Association meeting on October 24th. The guest speaker was David Bejarano, who now has his own security company, and whose topic was security of your home and business. Besides alarm systems, he also recommended having dogs and automatic motion lighting.

10. QUARTERLY REPORT OF DIRECTORS’ EXPENSES – 1st QUARTER 2006-07

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

11. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Operations Manager Rogers had nothing further to report to the Board.

B. Report of General Manager Bostad: General Manager Bostad pointed out the monthly report of activities and Sweetwater Authority’s Portfolio and Investment Report in the Board’s packet. He reminded the Board that tomorrow Sweetwater Authority will be hosting attendees of the Water Education Foundation’s Southern California Tour at the Reynolds Desalination Facility for approximately a one and one-half hour tour. Chair Pocklington said it would be nice to meet with some of the people from outside our area. Mr. Bostad said among the tour participants were some people from the State Water Resources Control Board and some senior staff members from MWD. He said this is a real opportunity for Sweetwater to share some of the ideas that we have been working on.

NOTE: Director Morrison left the meeting at 4:59 p.m.

12. DIRECTORS’ COMMENTS

Director Salas commented that there were only 13 days left before the election.

Director Doud read a quote from Chester Karrass: “In business, you don’t get what you deserve. You get what you negotiate.”

Director Beauchamp said that the National City Council has reappointed him to the Sweetwater Authority Board for a four-year term, and he thanked Director Morrison for his support. He also commented on the public relations for the Water Conservation Summit and that he did not remember hearing about it until it was all over. General Manager Bostad said that it was primarily coordinated through CWA with participation from some of the member agency managers and staff. Originally, the target audience was limited to planning directors of general government agencies that are developing, landscapers, and landscape contractors involved with external use of water. They apparently didn’t get as much participation as expected in that area, and the second effort to open it up to everyone was splintered in getting the word out. Chair Pocklington said that it was intended for public involvement, not directors, but when they did not get enough participation, they opened it up only about three days before the event. Director Beauchamp said he and his wife recently visited the Conservation Garden. He has a lot of input to offer for some good things that can be done there. He noted that he saw many people walking around with plans for their own yards, so the Garden is a powerful tool.

13. CLOSED SESSION

There was no need for one.

14. ADJOURNMENT

With no further business before the Board, Chair Pocklington adjourned the meeting at 5:03 p.m., to the hour of 6:00 p.m. on November 8, 2006.