minutes

Special Meeting

Governing Board of Sweetwater Authority

December 12, 2003

The Governing Board of Sweetwater Authority held a Special Meeting on December 12, 2003, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. The meeting was teleconferenced from the lobby of the Westin Hotel in Pasadena, 191 North Los Robles, Pasadena, California, where Director Inzunza was in attendance. Chair Doud called the meeting to order at 1:16 p.m.

· ROLL CALL

Directors Present: Doud, Pocklington, Reynolds, and Welsh. Director Inzunza was present at the Westin Hotel in Pasadena.

Directors Absent: Beauchamp.

Others Present: General Manager Bostad, Operations Manager Rogers, and Board Secretary Farpón-Friedman. Staff members Hank Gaus and Tom Woodrum.

· PLEDGE OF ALLEGIANCE TO THE FLAG
Director Pocklington 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.

1. DIRECTORS' BENEFITS WORKSHOP

General Manager Bostad indicated that the purpose of the workshop was to provide a broader background from the standpoint of legal constraints and political/legislative issues, and to present alternative recommendations.

Director of Administrative Services Woodrum provided information on benefits for directors provided by other water agencies. Most agencies provide dental and eye care insurance, as well as life insurance. Some provide healthcare, about half provide deferred compensation, and none provide benefits for retired directors.

Legal Counsel Cowett reported that retirement benefits for this Board are prohibited by Law. As for benefits to current directors, they are permitted to the extent they do not exceed the benefits provided to the employees.

General Manager Bostad provided background information on political and legislative issues. He stated that the intent of the workshop was to get direction from the Board as to whether or not to consider adding the healthcare benefit and which of the following alternatives the Board would like to pursue:

1. Status Quo
2. Status Quo plus health benefits
3. Status Quo plus health benefits plus matching contribution
4. Employee status

Director of Finance Gaus discussed the tax implications of the employee status versus the independent contractor status and responded to questions from directors on the subject. Directors exchanged opinions regarding the four alternatives presented by staff.

Director Pocklington made a motion, seconded by Director Inzunza, that the Governing Board direct staff to further study alternatives 2 and 3 and report back to the Board within 60 days. The motion carried with Directors Doud, Inzunza, Pocklington and Reynolds voting in favor and Director Welsh voting against it.

2. ADJOURNMENT

With no further business before the Board, Chair Doud adjourned the meeting at 1:59 p.m., to the hour of 3:30 p.m. on December 22, 2003.