minutes

Regular Meeting

Governing Board of Sweetwater Authority

November 26, 2003

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, November 26, 2003, 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: Beauchamp, Doud, Pocklington, Reynolds and Welsh
Directors Absent: Inzunza
Others Present: General Manager Bostad, Operations Manager Rogers, Legal Counsel Paula de Sousa, Treasurer Avery, and Board Secretary Farpón-Friedman. Staff members Hank Gaus, Sue King, Mary Ann Mann, Mark Molsberry, Bill Olson, Rita Schoonderwoerd, George Silva, and Jim Smyth

· PLEDGE OF ALLEGIANCE TO THE FLAG
Director 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 for comment.

· CHAIR 'S PRESENTATION
Presentation of Employee Service Awards.

Chair Doud presented service awards to the following employees: David Grable, Information Systems Support Specialist, and Michelle Huey, Customer Service Supervisor, for five years of service; Bob Johnson, Equipment Mechanic Supervisor, and Mike Hansen, Sr. Scada System Coordinator, for 10 years of service; Hector Martinez, Deputy Chief Engineer, and Sandra Lozano, Conservation Rep./Information Specialist, for 15 years of service; and Mike Gravitt, Superintendent of Maintenance, and Mark Grohman, Utility Leadworker, for 20 years of service.

NOTE: Director Inzunza arrived at 3:42 p.m.

Chair Doud congratulated the recipients and called a 10-minute recess for the Board to share cake and coffee with the recognized employees. He called the meeting back to order at 3:45 p.m., and all members of the Board were in attendance.

· ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA
General Manager Bostad requested to add an item that had come to the attention of the Authority after the posting of the agenda and which needed immediate action. Counsel de Sousa noted that the item to be added would be discussed under closed session pursuant to Government Code Section 54956.8.

Director Pocklington made a motion, seconded by Director Beauchamp, that the Governing Board add Item 12 as a Closed Session to discuss real property matters. The motion carried.

1. APPROVAL OF MINUTES

Director Pocklington made a motion, seconded by Director Reynolds, that the Board approve the minutes of November 10, 2003. The motion carried.

2. APPROVAL OF DEMANDS AND WARRANTS

Director Reynolds made a motion, seconded by Director Beauchamp, that the Board approve Warrants 91493 through 91813 including all voided checks. The motion carried.

ACTION CALENDAR ITEMS

3. COMMUNICATIONS COMMITTEE (Meeting of November 24, 2003)

A. Consideration of formal customer survey report presented by San Diego State University Social Science Research Lab: This was an information item and no action was required by the Governing Board.

B. Consideration of a new sign for Sweetwater Authority's National City Public Faucet: This was an information item and no action was required by the Governing Board.

C. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve changing the name of the Richard A. Reynolds Demineralization Facility to the Richard A. Reynolds Desalination Facility. The motion carried.

D. Director Pocklington made a motion, seconded by Director Welsh, that the Governing Board authorize the purchase of art services/advertising depicting the reservoir and dam, the Desalination Facility, and the Administrative Offices, at a cost of $595. The motion carried.

E. Director Pocklington made a motion, seconded by Director Reynolds, that the Governing Board approve staff proceeding with promotion of the Sweetwater Authority scholarship, and that continuation of the South Bay Irrigation District scholarship be referred to that Board for consideration at its December meeting. The motion carried.

F. Discussion of planned tours of Sweetwater Authority facilities. This was an information item and no action was required by the Governing Board.
G. Information Items: press releases, other items prepared for public information distribution, and update on major projects. This was an information item and no action was required by the Governing Board.

4. FINANCE AND PERSONNEL COMMITTEE (Meeting of November 25, 2003)

A. Director Beauchamp made a motion, seconded by Director Pocklington, that the Governing Board approve the renewal of the 2004 membership in the American Membrane Technology Association and the payment of dues in the amount of $500. The motion carried.

B. Director Beauchamp made a motion, seconded by Director Pocklington, that the Governing Board approve the renewal of the 2004 membership in the Association of California Water Agencies, the payment of dues in the amount of $13,065, and the payment of the balance of $515 for the calendar year 2003. The motion carried.

C. Director Pocklington made a motion, seconded by Director Reynolds, that the Governing Board approve the preselected list of bidders for the installation of a company-wide access control and security management system. The motion carried.

D. Director Pocklington made a motion, seconded by Director Beauchamp, that the Governing Board delegate authority to the General Manager to approve accelerated tuition payments as a day-to-day management decision, with the condition that an annual report on the status of this program be provided to the Board. The motion carried.

5. NEW BUSINESS

A. Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve the appointment of Director Pocklington as the representative to the Chula Vista Interagency Water Task Force to replace Director Wright. The motion carried.

B. Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve the appointment of Director Reynolds as the Representative to the National Water Resources Association to replace Director Wright. The motion carried.

C. Upon a motion made by Director Welsh, seconded by Director Pocklington, the following resolution:

RESOLUTION 03-20

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
IN SUPPORT OF NOMINATION OF GREG ZLOTNICK FOR THE POSITION OF ACWA VICE PRESIDENT

was passed and adopted by the following vote to wit:

Ayes: Directors Beauchamp, Inzunza, Doud, Pocklington , Reynolds, and Welsh
Noes: None
Absent: None
Abstain: None

D. Director Pocklington made a motion, seconded by Director Doud, that the December 24th Board meeting be rescheduled to December 22, 2003, at 3:30 p.m.The motion carried.

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

Director Pocklington said that National City Representative Valderrama was unable to attend this meeting. He mentioned that Susan Vartry had retired from the CWA Board and would be replaced by Mark Muro. He then briefed the Board on issues discussed at the last CWA Board meeting that were of interest to Sweetwater Authority. Included in those issues were the adoption of Resolution 2003 certifying the Program Environmental Impact Report for the Regional Water Facilities Master Plan; San Vicente Pipeline proposals for additional environmental mitigation at the Beeler Shaft; the proposed amendment of the CWA Act to approve "in concept" the addition of Lakeside and Riverview Water Districts as associate members, subject to proceedings to detach those agencies from the Padre Dam Municipal Water District; and the 10-year power purchase agreement with San Diego Gas and Electric for the Rancho Penasquitos Pressure Control/Hydroelectric Facility.

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

Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board approve per diem for directors who wish to attend the San Diego County Water Authority Legislative Roundtable with Assembly Member Christine Kehoe on Tuesday, December 9, 2003, from 7:30 a.m. to 9:00 a.m. The motion carried.

8. REPORT OF TREASURER - WANDA AVERY

Ms. Avery reported that the rate for a three-year investment with the Home Loan Bank is 2.77 percent. The Local Agency Investment Fund rate at this time is 1.6 percent.

9. BUDGET REPORT - DIRECTOR OF FINANCE GAUS
Report as of October 31, 2003

Director of Finance Gaus reported that the water sales were $387,294 below our projections, partially due to the change in the tier structure. Other Income is right on target at this time. The Interest Income is $5,934 over what was estimated. The Operating Expenses are under budget by $139,148. He reported on the Capital Projects by department and noted that overall we have spent 15 percent of this year's budget to date instead of the estimated 24 percent.

10. MANAGEMENT REPORT

P. Report of Rainfall and Reservoir Levels - Operations Manager Rogers: Operations Manager Rogers referred to the slide displayed on the screen, which had been taken at the Energy Give-Away Exchange for light bulbs and fluorescent lights recently held in Chula Vista. The Authority had a booth at the event and staff gave away 800 spray nozzles. He did not have anything else to report.

Q. Report of General Manager Bostad: General Manager Bostad referred to the monthly report of activities included in the Agenda package and offered to answer any questions from Board members. He reported that he had attended the American Water Works Association Research Foundation Leadership Forum on Friday. This was an effort put together by the City of San Diego and several water agencies with the intent to draw more attention towards operating water systems in an environmentally sensitive manner. He said that a report would be finalized in the Spring/Summer and he would share it with the Board. He announced that on Monday, December 1st at 9:30 a.m., there would be a LAFCO Service Review Group meeting. The administration, management, operation, and governance of South County agencies would be reviewed as part of the evaluation of the South County Service Review report.

11. DIRECTORS' COMMENTS

Director Pocklington wished everyone a very blessed Thanksgiving Day.

Director Beauchamp extended his sympathies to the Board Secretary on the loss of her mother. He said he had attended a California Water Policy Conference in Los Angeles and brought a booklet entitled The Pacific Institute Report on Water Conservation in California, which provides information on the different methodologies and outside landscaping. He voiced his concerns about conservation and added that this document has brought guilt to his doorstep, as he wonders why he has two lawns when kids are no longer playing on them. He referred to his previous comment about the possibility of having only one meeting a month; he said he did not know which committee would consider that matter or whether it was even considerable. Another issue he would like to refer to a committee is the fact that we could now take advantage of having a watershed with zero fuel load on it and work with State Forestry or with the U.S. Forest Service to maybe set up a program so that we can every so many years have some of the area recycled. He added that today he had received the first water bill for his new apartment in Tijuana and it was $3.60 for the month.

Director Reynolds said he attended the NWRA and the California Water Policy Conferences since the last Board meeting, and two things had called his attention. He noticed that the regulators and environmental folks are making their lists up for desalination projects and seem to have their act together. Yet, each agency that wants to build one of these projects is by itself alone in the fight to get the projects approved. He wondered if there could be some effort to get agencies together that want to build a desalination project and face these regulators and environmentalists. This might cut down their lists of blocking issues precluding projects that are certainly much better than many other alternatives, like augmenting the Colorado River. He would like to see us at least put out a query as to how we can join together with other agencies, if we are really interested in desalination. The second issue he found interesting came from the General Manager of Las Vegas Water District, who gave a very interesting keynote speech, besides participating in a couple of panels. She said that developers in Las Vegas build with no assurance that they are going to have water service. After the developments are built they ask for a meter, which they may or may not get, depending on whether there is water available. She also said that her agency is interested in building and funding desalination plants with a partner in the West coast.

Director Pocklington said that he had attended the Public Forum sponsored by San Diego State University last week. One of the speakers was Lloyd Alan, a Director of IID. He was one of the three in the three-to-two vote in favor of the CWA/IID Agreement. He is very pro-agriculture; however, he figured out they could do a better job with agriculture and save some water and make use of this water through other parts of California. Director Pocklington added he is thankful to have people like him in the water business because, if it weren't for someone like him, we would still be struggling with the Colorado problem.

Director Doud told a humorous story about a ten-year old girl filling out an application for a savings account at the bank; when she came to the line that said "previous bank," she thought for a moment, and she wrote in "piggy."

12. CLOSED SESSION

· CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Government Code Section 54956.8)

· Property: Lion's Club at corner of Fourth Ave and Mankato Street, Chula Vista
· Agency Negotiators: Mark Rogers, Operations Manager & Paula de Sousa, Legal Counsel
· Negotiating Parties: Chula Vista Service Club, Inc.

At 4:31 p.m., in compliance with Government Code Section 54956.8, the Board recessed to convene in Closed Session to discuss price and terms of payment of property. Chief Engineer Smyth, General Manager and Operations Manager, Legal Counsel, Treasurer, and Board Secretary remained in attendance. There were no minutes taken, and the session was not tape-recorded.

At 4:40 p.m., Chair Doud declared the meeting to be in open session, and there was no reportable action.

13. ADJOURNMENT

With no further business before the Board, Chair Doud adjourned the meeting at 4:40 p.m., to the hour of 6:00 p.m. on December 10, 2003.