minutes

Regular Meeting

Governing Board of Sweetwater Authority

December 8, 2004

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, December 8, 2004, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Doud called the meeting to order at 6:00 p.m.

· ROLL CALL

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

Directors Absent: Inzunza and Pocklington.

Others Present: General Manager Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Avery, and Board Secretary Farpón. Staff members Debra Farrow, Bill Olson, George Silva, Jim Smyth, Don Thomson and Tom Woodrum.

· PLEDGE OF ALLEGIANCE TO THE FLAG
Director Beauchamp conducted the pledge of allegiance to the flag.

NOTE: Director Pocklington entered the meeting at 6:01 p.m.

· OPPORTUNITY FOR PUBLIC COMMENT (Government Code Section (54954.3)
There were no members of the public present for comment.

· CHAIR 'S PRESENTATION
Chair Doud asked Board Secretary to administer the Oath of Allegiance to the three newly reappointed directors Jim Doud, Division 2; Jim Alkire, Division 3; and Margaret Welsh, Division 5. Director Pocklington presented the Certificates of Election to the newly reelected directors.

ACTION CALENDAR ITEMS

1. ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA
Director Doud made a motion, seconded by Director Welsh, that the Otay Water District Groundbreaking Ceremony be added as Item 7C.

2. APPROVAL OF MINUTES

Director Alkire made a motion, seconded by Director Beauchamp, that the Board approve the minutes of November 17, 2004. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Pocklington made a motion, seconded by Director Beauchamp, that the Governing Board approve Warrants 97442 through 97648 including all voided checks. The motion carried.

4. OPERATIONS COMMITTEE (Meeting of November 24, 2004)

A. Director Beauchamp made a motion, seconded by Director Welsh, that the Governing Board approve Mr. Paul Radley's request for a remote service at 4348 Loma Paseo, Bonita, and that he be responsible for all fees and deposits for the new service. The motion carried.

B. Director Beauchamp made a motion, seconded by Director Welsh, that the Governing Board award a sole-source contract to Fuller's Plumbing Service, Inc., in the amount of $13,000 for the installation of 47 pressure-reducing valves on East Queen Anne Drive, Chula Vista. The motion carried.

C. Metropolitan Water District Seasonal Storage Program (SSOA) update. This was an information item and no action was required by the Governing Board.

D. Director Beauchamp made a motion, seconded by Director Alkire, that the Governing Board award a one-year time and materials contract to HINZ Automation, 1808 Aston Avenue, Suite 170, Carlsbad, CA 92008, in the amount of $25,000, and that Timberline Engineering's contract be modified to incorporate this work.

E. Director Beauchamp made a motion, seconded by Director Welsh, that the Governing Board approve Mr. Juan Izaguirre's request for a remote water service, and that he be responsible for all fees and deposits for the new service. The motion carried.

5. COMMUNICATIONS COMMITTEE (Meeting of December 7, 2004)

A. Report and discussion on the 2004 Leader Tours and plan for 2005 Tours. This was an information item and no action was required by the Governing Board.

B. Oral discussion regarding current general public facility tour practices. This was an information item and no action was required by the Governing Board.

C. Oral discussion regarding 2005 advertising themes and messages, including fleet sign campaign. This was an information item and no action was required by the Governing Board.

D. Information items: draft new fact sheets, demonstration of online employee newsletter, update on CSDA scholarship program for 2005. This was an information item and no action was required by the Governing Board.

6. APPROVAL OF RESOLUTIONS

Upon a motion by Director Doud, seconded by Director Welsh, the following resolution:

RESOLUTION 04-20

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
AMENDING THE APPENDIX OF THE CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM ACT OF 1974

was passed and adopted by the following vote to wit:

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

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

A. Council of Water Utilities, San Diego County meeting at StoneRidge Country Club - Tuesday, December 21, 2004 - 7:15 - 8:45 a.m. Directors Alkire, Beauchamp, Doud, Pocklington and Welsh will be attending this pre-approved event. No action was required by the Governing Board.

B. California Center for Border and Regional Economic Studies - 6th Annual Imperial Valley Economic Development Summit, January 27, 2005, Imperial Valley Expo, Imperial, California. None of the Directors will be attending this event. No action was required by the Governing Board.

C. Otay Water District groundbreaking ceremony for a new pump station in Eastern Chula Vista - Thursday, December 16, 2004 - 9:00 a.m. Director Pocklington made a motion, seconded by Director Alkire, that the Governing Board approve per diem for any Directors who wish to attend this event. The motion carried.

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

Mr. Valderrama said that this might be his last report because National City has requested that an elected official be its representative at the CWA Board. He is therefore assuming that at the next City Council meeting one of its members will be appointed as the Representative at the CWA Board. He said that it has been a pleasure to represent National City for the last two years.
He then provided his report on issues of interest that would be discussed at the Board meeting tomorrow. His report included items under the Public Affairs Committee, Administrative and Legal Committee, and Planning and Environmental Committee. Some issues he covered were a contract to Katz & Associates for Emergency Storage Project public outreach support services; the Vote Resolution for Calendar-Year 2005 to determine the voting power of each representative in the member agency; adopting Chapter 7.00 of the Administrative Code - Regulation of Rights of Way and Property; and amending Chapter 2.00 of the Administrative Code relating to Standing Committees. He also talked about restructuring the committees. The proposal is to eliminate the Executive Committee and the Budget and Audit Committee and have five standing committees: Administrative and Finance, Engineering and Operations, Imported Water, Legislative Conservation and Outreach, and Water Planning. Each one of the committees will have 14 members and each Director will be assigned to two committees. Each committee will have a Chair and two Vice Chairs.

Director Pocklington thanked Mr. Valderrama and said that he has been a full backer of National City, South Bay and Sweetwater. He added that when one asks Mr. Valderrama to do something, he does it. He has the intellect to look at all of the material and grasp it and ask very tough and intellectual questions. He is sorry that he is leaving.

Director Pocklington then provided his report on issues under the Water Policy, Fiscal Policy, and Engineering Committees. He said that all the committees received the final report on Water Policy goals and that 90-95 percent of them have been completed, and the rest will be completed during the next cycle. One of the issues covered was a consultant service agreement with Camp Dresser and McKee for All American and Coachella Canal Lining Projects. The state is providing $84 million dollars to build the Coachella and $136 million for the All American Canal. He said that the CWA should be getting water from the Coachella canal in 2007 and from the American Canal if 2008. he also mentioned that they would award a consultant services agreement with David Sunding to provide representation to the Economic Panel of the Local Entity. He noted that the purpose or the local entity is to administer funds made available to the CWA and IID to offset any harmful socio/economic or third party impacts found to be caused by fallowing farmland to conserve water for transfer.

9. REPORT OF TREASURER - WANDA AVERY

Ms. Avery reported that LAIF interest rates have gone up to 2.09 percent.

10. BUDGET REPORT, October 31, 2004

Finance Administrator Farrow presented the report of the budget. She noted that we are in the fourth month of the Fiscal Year or 25 percent through the year, and the budget is right on target, with water sales, other income, and interest income a little above budget. She reviewed the year-to-date operating revenues and expenses, and stated that the revenues are $3.3 million over the expenses. At the end of the year, we expect to be at $9.5 million of revenue over expenses. Ms. Farrow also reviewed the Capital Projects and said that we have spent 20 percent of the annual budget, and our projection was to have spent 23 percent at this time.

11. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Operations Manager Rogers reported that the rainfall received from the last storm was 157 acre-feet at Sweetwater Reservoir and 22 acre-feet at Loveland Reservoir. The runoff year-to-date is 2,585 acre-feet into Sweetwater Reservoir and 1,199 acre-feet into Loveland Reservoir. As for rainfall, to date we received 8.39 inches of rainfall in Sweetwater, which is 75 percent of the annual rainfall, and 10.39 inches in Loveland, which is 69 percent of normal.

He provided a report on a project that is currently in progress at two of the three ponds in the eastern part of Sweetwater Reservoir. He commented that, back in 1961 through about 1981, there was a mining operation to recover concrete sand out of that part of the reservoir. We are now in the process of reclaiming the ponds to create habitat for endangered species, which will in turn allow us to remove unwanted vegetation closer to the reservoir. We have contracted with Otay Valley Constructors to deliver 20,000 yards or so of soil into the two lakes, at about $2.35 per cubic yard. There are three pumps taking water out of the lakes to make it easier to deposit the soil. Otay River Constructors needs to get rid of that soil, so it is a win-win deal for both them and us.

B. Report of General Manager Bostad: Mr. Bostad showed a plaque that we had received from SDG&E recognizing us for assisting with peak management of power. We have issues on the power side of the house. SDG&E have this program where they work with their key customers to notify them by pager to adjust pumping schedules to help reduce the power loads. Mr. Bostad added that we have been working with SDG&E and he wanted to show the Board the fact that they appreciate it very much.

Mr. Bostad referred to a couple of articles in the board packet on the City of San Diego water projects. There are some concerns regarding their making progress on treatment plant improvements and other water infrastructure. Some preliminary reports are that their treatment plants will likely be the last to be affected and they are on target. If we had a treated water peaking problem now, and if the City has to turn to the CWA or the MWD for treated water, the whole problem will be more exacerbated. He also mentioned that we have received an electronic deposit of $175,000 from USEPA as part of our ongoing grant funding. He also informed the Board that we have received the $200,000 from the State of California that we were concerned about.

12. DIRECTORS' COMMENTS

Director Welsh said that she really appreciated those employees who said congratulations to her. Those who didn't, she will remember.

Director Pocklington said that while at the ACWA conference he learned that some district in central California had employees walking precincts for their directors and donating money for his or her campaign, and that this was something that happened quite frequently. He said that is how special districts get themselves in trouble. The ACWA conference in Palm Springs was interesting. He added that tomorrow will be his last day as the Chairman of the Engineering and Operations Committee, which had been a real pleasure. He hopes that his workload reduces at the CWA because he understands that he has a heavier workload coming up at MWD. He has been appointed Vice Chair of the Desalination Committee and he thinks that it will require a lot of work.

Director Beauchamp said that the ACWA conference in Palm Springs helped him to understand more of the breadth of what the issues are at the state. He sometimes tries to sit with another group of people and see what they are doing and how they are doing it and how we can improve our system by using that knowledge because there are a lot of things coming down the pike that we must get ready for. He is on a State Fish and Game Commission and knows that there is a lot that will he happening at that level. The California Performance Review is a serious issue and something is going to happen although he does not know what it will be. The big issue is that special districts do not get any respect because people don't really understand what we are. It was brought to his attention that we need to get the education on Special Districts out. As for the blueprint for water for California, we have to be aggressive. Everything happened in the water structure under the Brown Administration and nothing has happened since then, yet the growth continues. It has exceeded the availability of the system to work. There is diversity in the state with fish and endangered species that has to be looked at, but the needs of population has to be given the priority and that is not happening right now. An example is the mess in the Delta and spending $50 million to fix something that saves $25 million worth of dirt. It was pointed out that we have, in our district, the attention of our legislators and if all the water agencies get unified and each one contact that person they know who supported and helped them, we could have a lot of power. We are just not organized and ACWA is pushing to do that. When he got back from the ACWA conference, Congressman Filner called him about Baja Agua. We must use that kind of power that we have to put our agenda forward because the public cannot do it.

Director Alkire wished Mr. Valderrama good luck. He said that in the year he has been on the Board, he has appreciated his reports and his support for South Bay and Sweetwater while he has worked for National City.

Director Doud also thanked Mr. Valderrama for his input. He commented that the Senator Ortiz bill would be going back into committee within the next week or two, according to what they heard in Palm Springs, so we can look forward to that problem again. He quoted from Henry Ford: "You can't build a reputation on what you are going to do."

13. CLOSED SESSION

There was no need for one.

14. ADJOURNMENT

With no further business before the Board, Chair Doud adjourned the meeting at 7:00 p.m., to the hour of 3:30 p.m. on December 22, 2004.