Board of Directors' Meeting Minutes
Minutes of the Committees and Formal Board of Directors Meeting
May 24, 2001
MINUTES OF THE ADMINISTRATIVE AND LEGAL COMMITTEE MEETING
Chair Dailey called the Administrative and Legal Committee meeting to order
at 10:02 a.m. At that time there
was a quorum of the Board. Accordingly, the meeting was conducted as a meeting
of the Board as indicated
on the agenda. However, only committee members participated in the vote. Chair
Dailey appointed Director
Johnson to the Administrative and Legal Committee in lieu of a quorum of the
committee. Committee members
present were Directors Ball, Newton, Parker, Tinker and Varty. Director Thompson
arrived at 10:15 a.m.
Committee members absent were Directors Bowersox, Haddad, Krauel and Quist.
Also present were
Directors Bond, Broomell, Buckner, Chenelle, Christensen, Fowler, Johnson, Knutson,
Loveland, McMillan,
Mason, Pocklington, Rhinerson, and Wilsman. Staff present were Ms. Stapleton
and Messrs. Glover, Guild,
Hentschke, Munson and others.
There were no additions to the agenda.
There were no members of the public who wished to address the Administrative
and Legal Committee.
Chair’s Report. There was no Chair's Report.
Consent Calendar. Director Tinker moved, Director Ball seconded and the motion
carried unanimously, to
adopt the following consent calendar item:
Adopt Resolution approving an amendment to the contract between the California
Public Employees’
Retirement System Board of Administration and the San Diego County Water Authority
Board of Directors.
Oral Reports on status of pending litigation:
General Counsel Hentschke provided an update on the status of pending litigation.
He reported that MWD had
filed a demur and the Authority had 30 days in which to reply.
General Manager Stapleton spoke about the response from MWD on the preferential
rights lawsuit.
Director McMillan inquired about the preferential rights percent available
and the relative/absolute guarantee of
2.1 million deliverable. Mr. Hentschke responded that it was a relative calculation
and 2.1 was used because it
was what MWD had represented as its reliable supply. Director Bond stated that
he was pleased the Authority
was doing the right thing by going through the litigation. Director Tinker inquired
about the status of MWD
contracting their way around preferential rights. Mr. Hentschke responded that
in the demur it was stated that
they could not independently contract in excess of a member agencies’ preferential
rights. He added that
Metropolitan had proposed a waiver clause to be signed by the member agencies,
but to be effective, the
waiver would have to be executed by all the members, including Los Angeles,
and extend so long as any
member was relying on the waiver. There was other brief discussion regarding
next steps in the litigation.
Mr. Hentschke also reported on the litigation initiated by MWD to exclude the
members of its Board
representing the Authority from participating in closed sessions on the preferential
rights suit. He reported that
MWD had noticed a motion for a preliminary injunction that would be heard on
June 5 in San Francisco Superior
Court.
The following information items were received and filed:
Oral report on Brown Act and Public Records Act implications of e-mail. Mr.
Hentschke gave a presentation to
the committee regarding use of e-mail. There were general questions and answers
regarding the subject. No
action was taken.
Board Calendar of Events. Ms. Stapleton asked the Board to continue holding
June 21st and 22nd as
tentative dates for the Board retreat and said a notice would be sent by Tuesday
confirming the selected date.
There being no further business to come before the Administrative and Legal
Committee, Chair Dailey
adjourned the meeting at 10:50 a.m.
MINUTES OF THE PUBLIC AFFAIRS COMMITTEE MEETING
Chair Johnson called the Public Affairs Committee meeting to order at 10:57
a.m. At that time there was a
quorum of the Board. Accordingly, the meeting was conducted as a meeting of
the Board as indicated on the
agenda. However, only committee members participated in the vote. Committee
members present were
Directors Johnson, Varty, Buckner, Christensen, Dailey, Fowler, Irvin, Newton
and Pocklington. Committee
members absent were Directors Cardenas and Jaeschke. Also present were Directors
Ball, Bond, Broomell,
Chenelle, Knutson, Lewis, McMillan, Mason, Parker, Rhinerson, Thompson, Tinker,
Williams and Wilsman.
Staff members present were Mss. Stapleton and Collins, and Messrs. Guild and
Hentschke.
There were no additions to the agenda.
There were no members of the public who wished to address the Public Affairs
Committee.
Chair’s Report. Chair Johnson stated that effective immediately, Board
members would view news clippings
electronically.
Directors’ Comments. Director Irvin questioned the need for toilet vouchers
as only low flow toilets were
available for purchase. General Manager Stapleton stated the idea was to use
less water in the future;
consequently, the vouchers were for the purchase of replacements for high-water
use toilets currently being
used.
There were no items on the Consent Calendar.
The following information items were received and filed:
Report on summer conservation awareness outreach. Acting Director of Public
Affairs Collins stated the
Authority was coordinating with the Joint Public Information Council (JPIC)
and the conservation section of the
Authority’s Water Resources Department a two-part conservation program.
The first part was raising
awareness through a summer conservation campaign by using media relations such
as public service
announcements. The second part was to create a drought campaign that could be
implemented if needed. Ms.
Collins played two conservation videos.
Director Thompson requested Channels 12 and 19, as well as other minority-focused
channels, be included.
Director Ball indicated the Hispanic community needed to be addressed regarding
the use of bottled water.
They needed to be informed that our standards were very strict and tap water
was good. Director Ball also
stated that the community needed to be made aware of the disassembly of brass
showerheads as well as that
some plastic showerheads cannot be taken apart.
Report on Public Affairs department activities.
Report on Public Affairs consultant activities for March and April.
There being no further business to come before the Public Affairs Committee,
Chair Johnson adjourned the
meeting at 11:21 a.m.
MINUTES OF THE PLANNING AND ENVIRONMENTAL COMMITTEE MEETING
Chair Thompson called the Planning and Environmental Committee meeting to order
at 11:28 a.m. At that time
there was a quorum of the Board. Accordingly, the meeting was conducted as a
meeting of the Board as
indicated on the agenda; however, only committee members participated in the
vote. Committee members
present were Vice Chair Chenelle, Directors Broomell, Irvine, Lewis, McMillan
and Williams. Committee
members absent were Cardenas, Jacob, Jaeschke and Turner. . Also present were
Directors Ball, Bond,
Buckner, Christensen, Dailey, Fowler, Johnson, Knutson, Loveland, Mason, Newton,
Parker, Pocklington,
Rhinerson, Varty and Wilsman. Also present were Ms. Stapleton, and Messrs. Guild,
Hentschke, Taylor,
Weinberg, Yamada, Jacoby and others.
There were no additions to the agenda.
There was no Chair's report.
Director Chenelle moved, Director Irvin seconded and the motion carried unanimously,
to adopt the following
Consent Calendar items:
Authorize the General Manager to enter into agreements with Honeywell DMC to
administer, and with member
agencies, the Metropolitan Water District, and the U.S. Bureau of Reclamation
to fund the Water Conservation
Voucher Incentive Program in an amount not to exceed $9,450,000.
Authorize the General manager to enter into an agreement with VIEWtech, Inc.
to administer the Landscape
Assistance and Residential Survey Programs and with member agencies and the
Metropolitan Water District to
fund the programs in an amount not to exceed $960,000.
Authorize the General Manager to enter into an agreement with Mission Resource
Conservation District to
administer the Agriculture Water Management Program in an amount not to exceed
$195,000.
Approval of Financial Assistance Program applications - April 2001 submittal
period not to exceed $80,153.
Authorize the General Manager to transfer ownership and management responsibility
of the Crestridge Habitat
Management Area to the California Department of Fish and Game.
Authorize the General Manager to amend the professional services agreement
with ASL Consulting Engineers
to conduct Phase 2B of the Lower San Luis Rey River Valley Groundwater Storage
and Recovery Feasibility
Study for an amount not to exceed $1,400,000.
Senior Civil Engineer Yamada gave a detailed review on each Action Plan task
and a task update as described
in the Board memorandum entitled Receive Seawater Desalination Action Plan Status
Report and Authorize the
General manager to negotiate/execute a Cooperative Agreement, among Carlsbad
Municipal Water District,
the City of Oceanside and the Authority regarding seawater desalination in the
City of Carlsbad, and a Letter of
Intent between the Authority and Poseidon Resources Corporation regarding the
feasibility of a seawater
desalination project at or near the South Bay Power Plant.
He also reviewed the Poseidon Resources Corporation's Letter of Intent, and
its implications. Mr. Yamada
gave a brief overview of the next steps that would be taken upon approval of
the staff recommendations.
Walter Winrow, Executive Vice President of Poseidon Resources Corporation,
gave a brief overview of
Poseidon. He provided briefing packages, which were distributed to the Committee
members. Mr. Winrow
also answered questions from the Board.
Director Chenelle moved, Director McMillan seconded and after some discussion
the motion carried
unanimously, to adopt the staff recommendations.
Proposed energy strategy for the County Water Authority. Senior Water Resources
Specialist Willett gave a
detailed review of the Board memorandum.
Director Broomell moved, Director Chenelle seconded and the motion carried
unanimously to adopt the staff
recommendation.
The following information items were received and filed:
Water Resources Report.
Binational activities update.
There being no further business to come before the Planning and Environmental
Committee, Chair Thompson
adjourned the meeting at 12:05p.m.
MINUTES OF THE FISCAL POLICY COMMITTEE MEETING
Chair Pocklington called the Fiscal Policy Committee meeting to order at 1:09
p.m. At that time, there was a
quorum of the board. Accordingly, the meeting was conducted as a meeting of
the Board as indicated on the
agenda; however, only Committee members participated in the vote. Committee
members present were Chair
Pocklington, Directors Bond, Broomell, Knutson, Loveland, McMillan, Mason, Rhinerson,
and Wilsman. Absent
were Directors Madigan and Quist. Other Directors present were Ball, Buckner,
Chenelle, Christensen, Dailey,
Fowler, Haddad, Irvin, Lewis, Newton, Parker, Tinker, Turner, Varty and Williams.
Also present were General
Manager Stapleton, Deputy General Manager Guild, General Counsel Hentschke,
Director of Finance/Treasurer
Brust, Controller Munson and Financial Services Manager/Assistant Treasurer
Warren.
There were no additions to the agenda.
There were no comments or questions directed to the Fiscal Policy Committee
from the public.
Chair's Report. Chair Pocklington provided a short report on the Rate Study
Subcommittee on behalf of
Director Rhinerson. He also said that at the Financial Rate Model Program workshop
16 Directors attended
and it was a very good workshop. He thanked Ms. Brust and her staff and said
he would like to do it next year to
prepare the Directors in the financial area. He said at the ACWA conference
he sat in on a number of
conferences. He commented that as far as the reserves, in time of need it was
better to have more than less.
He said there would be a workshop on reserves sometime after July 1. He said
there would be one on debt
financing next Spring.
Ms. Stapleton presented a short Special Budget Committee budget workshop teaser
power point presentation.
She provided an overview that highlighted revenues of $461 million and expenditures
of $436 million. She said
that water purchases were slightly over half of the expenditures and the capital
budget made up 30% of the
expenditures. Ms. Stapleton said that $1.2 billion (or 69%) of the CIP would
be used for the Emergency
Storage Project (ESP). She said that $131 million was budgeted for the 2002
CIP and that it was the most
ambitious CIP program to date.
Ms. Stapleton reminded the Board that the Special Budget Committee would meet
Tuesday, May 29th and
Wednesday, May 30th from 1:30 to 5:00 p.m.
Rate Study Subcommittee Report. Chair Pocklington reported on behalf of Director
Rhinerson. He said that
Authority staff had been meeting with staff of various water districts. He said
that Director Rhinerson was
planning to have the next meeting in June.
Director's Comments. Director Christensen asked if the Special Budget Committee
was going to be held on
Thursday, May 31st also. Director Pocklington said the Board would meet only
if they ran out of time on
Tuesday and Wednesday. Director Lewis asked if the budget included replacement
of the interstructural
segments of the CIP. Ms. Stapleton said yes, it included the replacement program
through the aqueduct
protection program and the necessary replacements of the Authority's system.
Director Lewis asked if there
was a system that showed the timeline for replacement. He asked how the Authority
kept up with addressing
the issue. Ms. Stapleton said she would make sure that would be included as
part of the CIP presentation.
Director Haddad said he was excited about the CIP infrastructure projects.
Chair Pocklington said that the aggregate CWA portfolio yield was staying right
around 6% for the 12-month
period, whereas the Treasury Bills and the Merrill Lynch 1-3 Treasury Bills
were down around 4%. He said the
Authority was averaging around 6% and that April was the first month in which
all three items (the 360, 365 and
the management pool rate) actually dropped below 6% because interest rates were
going down. He said it
looked like there would be one or two more interest reductions, which made it
more difficult for the Authority to
maintain that yield. He said it had been excellent in the past 12 months and
hoped it would continue.
Ms. Stapleton thanked Chair Pocklington for his comments. Ms. Stapleton said
that last year the Board was
concerned that the Authority was not being prudent in the investments because
the Authority was lower than
some of the set rates. She said that staff was looking at the long-term. She
said that staff was very pleased with
the investment portfolio and the strategy had proved out quite substantially
well since one year ago.
Consent Calendar. Director Wilsman moved, Director Tinker seconded and the
motion carried to adopt the
following Consent Calendar items:
Note and File Monthly Treasurer's Report.
PUBLIC HEARINGS: Adopt Ordinances (1) setting the rates and charges for delivery
and supply of water; and
(2) continuing the existing Standby Availability Charge. Chair Pocklington opened
the first public hearing to
Adopt the Ordinance Continuing the Existing Water Standby Availability Charge
on Land Within the Boundaries
of the Authority for Fiscal Year 2001-2002 at 1:20 p.m.
Mr. Munson stated that the purpose of the public hearing was to hear objections,
protests and comments from
the public about the Board's Resolution from last month which proposed adoptions
of an ordinance on or before
August 10, 2001, which would fix a water Standby Availability Charge of $10
per acre or parcel, whichever was
greater, on all land lying within the boundaries of the Authority for Fiscal
Year 2001-2002. He said the
Long-Range Financing Plan adopted by the Board reserved the use of the standby
charge to assist and provide
a revenue source to help fund cash and the debt service requirements to pay
capital improvements necessary
to supply water to its member agencies. Mr. Munson said that information obtained
from the County of San
Diego showed estimated revenue from the standby charge of $10 per acre or parcel
would be approximately
$10,600,000. He said after consideration of public comments, staff recommended
that the Board adopt the
ordinance fixing the water Standby Availability Charge for Fiscal Year 2001-2002.
There were no Director comments. There were no public speakers. Public hearing
closed at 1:23 p.m.
Director Wilsman moved, Director Bond seconded and the motion carried unanimously,
to adopt the ordinance
continuing the existing water Standby Availability Charge on land within the
boundaries of the Authority for Fiscal
Year 2001-2002,..
Chair Pocklington opened the second public hearing at 1:25 p.m. regarding the
proposed water rates and
charges for delivery and supply of water for Fiscal Year 2001 and 2002.
Ms. Brust provided an overview of all of the charges that were being proposed.
She said that rates were not
requiring an increase except for the M&I Commodity Rate, which staff was
proposing to increase from $90 to
$95 an acre foot effective January 1, 2002. She said the schedules showed the
member agency's total cost for
the IAC charge which was based on the number of meters in each member agency.
The total amount of $10
million had increased by $130,000 as compared to 2001, which was related to
increased capacity charge
sales. Ms. Brust reviewed the Readiness-to-Serve Charge, a pass-through charge
from Metropolitan Water
District.
Ms. Brust said the M&I rate, in order to smooth out the rate ramp, would
need to increase by $5, effective
January 1, 2002. She said the water rate would peak at $135 in 2011, which was
similar to the water rate ramp
from last year. Ms. Brust pointed out that the rate ramp would decline in the
later years due to the potential to
borrow additional funds for projects that were not included in the CIP.
Ms. Brust said the CIP budget had increased $95 million from last year. She
said the cost to fill the dam with
water was about $33.6 million. She said that because of generally accepted accounting
principles (GAAP) the
Authority could not capitalize water inventory; therefore, that would be a cost
borne by the Operating Fund. She
said those costs would hit in 2003, 2007 and 2010. She illustrated the difference
from the 2001 projections and
how those numbers had increased. Ms. Brust explained the existing and future
debt service through an
illustrated graph.
Ms. Brust reviewed the debt plan and recent updates. She said the Authority
was anticipating the issuance of
$215 million in Certificates of Participation in the Spring of 2002. She said
that the State of California's
downgrade would have impacts on the Authority. She said by the fall the State
would be issuing a great deal of
bonds and would be flooding the market. She said this would have an impact on
the investors and she said that
by issuing in the spring, it would be helpful by hopefully stabilizing the borrowing
cost to the Authority.
Ms. Brust said that staff was also considering doing some cash financing with
$58 million of PAYGO funds. She
said this was only a proposed plan, but as it would get closer to the debt issuance,
staff would reevaluate it and
bring it back to the Board with the actual plan. She said the thought process
was that the Authority needed to be
very cognizant of the debt service coverage ratios and that would enable the
Authority to have better coverage.
She said staff also was considering possibly cash defeasing some of the existing
issues as part of the new
money issue. She said those details would be brought to the Board, as well.
Ms. Brust said the Moody's report (as mentioned at the May 3 workshop) was
concerned with the Authority's
growing debt and considered it a weak spot on the balance sheet. She reviewed
the senior lien debt coverage
graph and the projected fund balances graph.
Director Wilsman asked if the Board was about to approve a $5 rate increase
for M&I water on January 1,
2002. Chair Pocklington said yes. Director Wilsman said he was not delighted
with the fact that before the
Board got a chance to study the rate increase or ask questions about it, they
did not get a chance to review the
budget. He said he was sure he could support the increase as soon as he had
some questions answered.
Director Wilsman said with the budget just being delivered to Board members,
he thought the rate increase
decision should have been postponed until the Board members had a chance to
review the budget and the
other material. He said he thought the Board got the cart before the horse.
Director Tinker said he was not a Committee member, so he would not be able
to vote against the increase, but
would at the full Board meeting. He said the Metropolitan Water District RTS
formula that was used for
distributing the RTS charge was grossly unfair, as it was based on three wet
winters. He said it significantly
subsidized those agencies with local water. He said if one were to look at the
percentages that people paid,
those agencies that were essentially 100% dependent on imported water were paying
far more than their fair
share for the RTS charge. Director Tinker said he had raised this issue every
year, and the Board has
continued to fail to recognize it as a problem.
Director Tinker said with regard to the possible defeasance of existing debt
using additional PAYGO funds;
Metropolitan Water District (MWD) had been arguing that for the last year. He
said he thought that MWD and
the Authority should be consistent with what they did. He said that MWD used
their excess reserves to defease
their existing debt, and most of the Board members thought it was a good business
saving. But, he said what
that did was put the burden on today's rate payer.
Ms. Stapleton said that it was not a recommendation that the Authority defease
debt. She said staff would want
full disclosure of all available options before any action.
Director Bond said he recalled that the Board established the rate ramp some
four years ago with only two
changes, that the Board did not raise it two times. He said it was not a new
thing - it had been in the plan, and
there were a number of ways to work the formula into the rate program. He said
by delaying an increase it might
hurt the Authority. He favored the increase.
Ms. Stapleton said the RTS structure that was established a number of years
ago had been a passthrough, as
MWD had passed it to the Authority. She said the Authority had specifically
opposed the structure of the RTS
charges at MWD for some of the very issues that Director Tinker had referenced.
She said as long as they
were passing it down in accordance with a certain formula, staff would recommend
the Authority maintain that
same formula for the RTS passthrough.
Director McMillan asked if there was a problem if the Board were to look at
the budget before doing the
increase. Ms. Stapleton said the member agencies had requested the Authority
complete the budget early, as
the agencies were trying to finish their budgets.
Director Lewis said that MWD had a set reserve limit and unexpected reserves.
He asked if in the budget
workshop there would be discussion on the reserves the Authority had or other
surplus elements. Director
Lewis asked if discussion would include issues about surpluses and their policies.
Ms. Stapleton said that last
October there was the Board-authorized refund of $6 million, and she said she
anticipated that the Authority
would be in that exact same position again when the audits were completed. She
said staff would then be back
to the Board with updates. She also mentioned that Chair Pocklington had said
there would be a workshop on
reserves, and she said that would be coming in the next several months.
Director Newton asked why the rate was being changed effective January 1, 2002,
rather than at the beginning
of the Authority's fiscal year. Director Turner said the rate payers really
noticed a rate increase July 1 due to the
water usage during that period of time. He said the Authority went to January
1, because it was during the
winter when water usage was low and the rate payer would not feel such a shock.
Director Newton said it created pressure to complete it with the budget process,
for something that would not
happen until January. Ms. Stapleton said it had to be figured into the budget
and there would not be adequate
time to implement it by July 1, 2001 if it were adopted in May.
Director Newton asked for 25 words to take to the Del Mar City Council that
explained why the Authority was
increasing the water rate. Ms. Stapleton said because the Authority was executing
an extremely large CIP
program, particularly in the Emergency Storage Project, which would increase
the water reliability for this region
in cases of emergency and drought.
Director Wilsman referred to the CIP slide in the presentation and questioned
the accuracy of the amount. He
said the $33.6 million to fill the dam that came from the CIP to the operating
fund had no impact on the need for
future revenue. Director Wilsman said the Long-Range Financing Plan called for
the Authority to pay only 12%
cash for CIP construction between now and the year 2012. He said according to
the rate model, the Authority
would pay over 16% cash, and every time the rates were raised, more money would
be taken away from the
grandfathers to pay for their grandchild's needs. He said the rate increase
could be shifted over one whole year
and the impact would be that the grandfathers would not be paying for the grandkid's
stuff. He said if the
Authority did not stick to the 12% cash to pay for ongoing construction, then
it should be looked at again in the
future. He also requested a new Long-Range Financing Plan.
Ms. Brust said that in terms of the cash financing, the Authority was actually
under the 12% cash financing
because there was a commercial paper program that had proceeds that needed to
be spent within two years,
or the Authority would have been subjected to arbitrage. She said after the
commercial paper program was
spent, the Authority also had the new debt issue in 1998 of $180 million of
proceeds, and the long-term debt
proceeds had to be spent in three years to avoid a yield-restrictive environment.
She said the focus had been
on long- and short-term debt and their goal was to catch up. She also said the
12% guideline referred to the
overall CIP, so that when all was said and done, the Authority would be at the
goal of 12%. She said she was
committed to getting the Long-Range Financing Plan to the Board in June 2001.
Ms. Brust said the rate ramp
needed to get settled down first, as that was the basis of that plan.
Ms. Stapleton said the Authority needed the flexibility on a year-to-year basis
in order to respond to changes.
Director Broomell said he was ready to support the staff recommendation regarding
the increase. He also
agreed with Director Tinker that the RTS formula needed to be revamped.
There were no public comments. Chair Pocklington closed the public hearing
at 1:55 p.m.
Director Knutson moved to adopt the Ordinance setting the rates and charges
for delivery and supply of water
for fiscal year 2001-2002. Director Rhinerson seconded. The motion carried.
Director Mason opposed.
Director Rhinerson, Chair of the Rate Study Subcommittee, said that staff was
continuing to work with member
agencies and was holding a series of meetings with agencies in geographic areas.
He said when all of those
meetings were completed and the reports were returned, there would possibly
be a Rate Subcommittee
meeting in June or early July. Director Lewis asked how the Authority could
talk about contracts when MWD
was so unstable with what it wanted to do. Executive Assistant to the General
Manager Campbell said that
MWD and their supply contracts were up in the air quite a bit, but that the
discussion at the Committee level
could make some assumptions. He said there were some contracts that had been
discussed at the Authority
previously, and the Authority had offered contracts to member agencies, and
some did sign a Memorandum of
Understanding for going forward with a contract. Staff had not moved forward
with those yet, as staff was
waiting for the whole rate structure. He said in summary that the Authority
would probably have the option for
contracts, as well as a fixed charge rate structure, much like in the ESP.
Director Knutson asked what the timeline was for the new rates, and if it was
on schedule to be done by the end
of the year.
Director Rhinerson said the transportation model had been sent out for a 90-day
review period and it would be
due back in August. He said he thought they were on target to finish it up this
year, even though there were
some difficult questions and serious issues that the Board would have to deal
with that might make that
schedule uncertain.
Monthly Financial Statements. Controller Munson presented the Monthly Financial
Report with a briefing on the
assets of the Authority.
Director Varty asked for an explanation on how the Authority determined the
rate of depreciation for different
assets. Mr. Munson explained that each asset was determined individually for
its useful life and the
depreciation was spread over that period.
There being no further business to come before the Fiscal Policy Committee,
Chair Pocklington adjourned the
meeting at 2:10 p.m.
MINUTES OF THE ENGINEERING AND OPERATIONS COMMITTEE MEETING
Chair Haddad called the Engineering and Operations Committee Meeting to order
at 2:23 p.m. At that time
there was a quorum of the Board. Accordingly, the meeting was conducted as a
meeting of the Board as
indicated on the agenda. However, only committee members participated in the
vote. Committee members
present were Directors Buckner, Chenelle, Christensen, Fowler, Johnson, Knutson,
Loveland, Williams, and
Wilsman. Committee members absent were Directors Bowersox and Rogers. Also present
were Directors
Bond, Broomell, Dailey, Lewis, McMillan, Mason, Newton, Parker, Rhinerson, Tinker,
Turner, and Varty. Staff
members present were Ms. Stapleton, Messrs. Guild, Hentschke, Economides, Nordgren,
Rose, Stift, and
others.
There were no agendas to the agenda.
There were no members of the public who wished to address the Engineering and
Operations Committee.
Chair’s Report
Chair Haddad reminded all Directors of the Engineering and Operations Committee
tour scheduled on
Thursday, June 14, 2001, and to remember to complete and turn in the RSVP form.
Chair Haddad announced that the Association of California Water Agencies (ACWA)
held its semi-annual
conference in South Lake Tahoe during the week of May 7, 2001. During the conference,
the prestigious Clair
A. Hill Award was presented for excellence aimed in recognizing outstanding
achievements by public water
agencies. This year ACWA had eight applicants, one of which was from the Authority
for its Aqueduct
Protection Program (APP). The APP was the finalist in the Operations Division.
The Authority began the APP
in 1991 to ensure structural integrity and reliability of pipelines. He said
since instituting the APP there had not
been a failure in a section of pipe that has been inspected. Even though the
Authority did not win the award,
being one of the four finalists was an honor.
Chair Haddad said the Action Plan for the Engineering and Operations Committee
Goals and Objectives for
2001-2002 had been provided in the Directors Board packet. He said the first
four goals were basically related
to right of way issues, fifth was the adoption of the Regional Water Facilities
Master Plan, and the last item is
the program to enhance Board members’ knowledge of the Authority’s
system. Each one of these items had
specific details listed with timelines for completion.
Director Wilsman stated that the Engineering and Operations Committee tour
agenda had been provided. He
requested that staff provide a three-foot by two-foot schematic of the Authority’s
delivery system to Directors
who planned to attend the tour. He added that this would be a useful tool for
Directors prior to the tour. Director
of Engineering Economides replied that the schematic was currently being updated,
but draft copies would be
provided.
Director Buckner moved, Director Knutson seconded and the motion carried, to
adopt the following Consent
Calendar items:
Authorize the General Manager to accept Sixth Amendment for $58,170 and approve
Seventh Amendment for
$438,120 to the professional services agreement with MARRS Services, Inc. for
a total contract amount of
$1,707,977 to provide as-needed Capital Improvement Program project scheduling
Authorize the General Manager to execute First Amendment to the San Diego 17
Pump Station agreement
between the City of San Diego and the Authority for the construction of the
San Diego 22 Flow Control Facility
Authorize the General Manager to execute the Seventh Amendment to the Parsons-Harza
Team professional
services agreement for $2.3 million to provide design and construction support
services during construction of
the Olivenhain Dam and the Lake Hodges Portal
Final Acceptance, recording Notice of Completion, and release of retention
for Valley Center Pump Station and
Flow Control Facility
Authorize the General Manager to execute a contract with Hawthorne Machinery
Co., for procurement of a
compact rubber tracked tractor in the amount of $84,215.50
The committee went into closed session at 2:29 p.m. to discuss – Conference
with Real Property Negotiator,
Government Code §54956.8, Property: partial acquisition of property interests
for the Moreno-Lakeside
Pipeline project (APN-395-014-06), Agency negotiators: Daniel S. Hentschke,
Bill Rose, Bill Busch, Steve
Moore, Negotiating parties: Leung Family Trust, Under negotiation: price and
terms of acquisition.
Chair Haddad reconvened the committee into open session at 2:35 p.m. and stated
that staff was instructed
accordingly.
The following information item was discussed:
Fiscal Year 2000/2001 Third Quarter Report on the Capital Improvement Program.
Mr. Economides reported
on various cost related elements of the Capital Improvement Program’s third
quarter of fiscal year 2000/2001.
Director Mason asked when the Twin Oaks Valley Diversion Structure was scheduled
for completion. Mr.
Economides replied that this project would be completed in August 2001. Director
Mason asked if this project
had originally been scheduled for completion by now. Assistant Director of Engineering
Stift replied that the
project had started slowly due to untimely submission of insurance and bond
requirement contract documents
required by the contractor.
The following information items were filed:
Del Dios Valve Vault and Temporary Pressure Control Facility, advertisement
for bids
Pipelines 3 and 4 Conversion – Diversion Structure to Miramar, Ramona
Pipeline and Olivenhain 3 Flow
Control Facility Connections to Pipeline 4, advertisement for bids
Response to key questions on the April 26, 2001 San Vicente Pipeline issues
report. Mr. Economides stated
that these were responses to significant questions asked at last months Board
meeting. He added that staff
had not mentioned in this report that water quality studies have been completed.
Staff would complete
additional studies as a part of the Lake Hodges project.
The following information item was discussed:
Emergency Storage Project monthly status report. Mr. Economides reported on
various issues and costs
related to the Emergency Storage Project (ESP).
Chair Haddad asked what the status was of ESP-related negotiations with Olivenhain
Municipal Water District
(OMWD). Mr. Economides replied that OMWD had expressed concern regarding potential
community impacts
resulting from negotiated changes to the project to reduce costs. He added that
the Authority and OMWD were
partnering together to overcome some of those concerns.
Director Chenelle asked if OMWD was assisting the Authority to keep ESP costs
down. Mr. Economides
replied that OMWD had been working diligently with the Authority to keep costs
down, and that he was
optimistic there would be a positive outcome.
There being no further business to come before the Engineering and Operations
Committee, Chair Haddad
adjourned the meeting at 2:45 p.m.
MINUTES OF THE WATER POLICY COMMITTEE MEETING
Chair Tinker called the Water Policy Committee meeting to order. At that time
there was a quorum of the Board.
Accordingly, the meeting was conducted as a meeting of the Board as indicated
on the agenda. However, only
committee members participated in the vote. Committee members present were Directors
Ball, Bond, Lewis,
Mason, Parker, Tinker, and Turner. Committee members absent were Directors Jacob,
Krauel, Madigan,
Rhinerson, and Rogers. Also present were Directors Broomell, Buckner, Christensen,
Dailey, Fowler, Haddad,
Irvin, Johnson, Knutson, Loveland, McMillan, Newton, Pocklington, Varty, Williams,
and Wilsman. Staff members
present included Ms. Stapleton, and Messrs. Campbell, Collins, Guild, Hentschke,
Hess, Taylor, Weinberg and
others. Also present were consultants Carpi and Clay.
There were no additions to the agenda.
There were no members of the public who wished to address the Water Policy
Committee.
Chair’s Report. Committee Chair Tinker expressed his appreciation to Board
Chairman Turner for the
opportunity to chair this committee. He highlighted items that were of particular
importance for the Authority,
including MWD rate restructuring, MWD's efforts to improve long-term reliability,
and the CWA/IID water
transfer. He said that it was imperative that the CWA Board, the Authority's
MWD delegates, and CWA staff
stayed focused on MWD's rate restructuring process to reach a conclusion that
was acceptable to the Authority.
He expressed concern regarding the ongoing process of environmental review for
the CWA/IID transfer. Third
party issues regarding the Salton Sea and Colorado River Delta could have an
impact on implementing the
transfer and the transfer price. Chair Tinker said MWD was taking a number of
actions to enhance reliability,
but that some of these actions might not come to fruition.
There were no Directors’ Comments.
Consent Calendar. Director Lewis moved, and the motion was seconded, to amend
the Authority’s Legislative
Guidelines as they pertain to land use and water management planning..
Discussion followed with Director Mason asking whether the Authority would
continue to support SB 610
(Costa) and oppose SB 221 (Kuehl). Director of Water Resources Weinberg discussed
the bills with respect to
Prop C, which tied the CWA to SANDAG planning processes. He said the CWA would
oppose legislation that
restricted or limited the effectiveness of the Authority in meeting its obligations
under SANDAG's regional
growth management provisions. Mr. Weinberg said, at this point, the Costa bill
was still at the project-specific
level. He said the Authority might seek to amend the bill.
Consultant Clay explained that an amendment to the Costa bill contained Prop
C exemption language for San
Diego. If the Authority Board approved, Mr. Clay said he would meet with Senator
Kuehl to develop language
that would incorporate Prop C provisions.
Director Mason asked whether there could be a San Diego County moratorium on
new water hookups if the
Authority lost the preferential rights suit and either Costa's or Kuehl’s
bill passed. General Counsel Hentschke
responded by saying that the Authority did not yet know the full impact of the
legislation. He said he thought there
would be significant doubt that Southern California could meet the requirements
of the Kuehl bill because MWD
did not have contracts and did not meet the Kuehl bill's definition in terms
of entitlement. He said the Kuehl bill
had problems other than just planning at the project-specific level.
Director Williams asked if either of those bills presented a framework of how
much water needed to be
available before a project could be approved. Mr. Weinberg replied that the
bills referred to a sufficient
availability of supply in normal, dry, and wet years. Board Chair Turner said
that the impact of losing the
preferential rights lawsuit was the same as if the Authority had not filed the
suit. He said the Kuehl bill, if
unamended, could result in a moratorium, but if the Authority won the preferential
rights suit, there would be less
of a chance of a moratorium.
The motion carried unanimously.
Report by Legislative Advocates Carpi & Clay. Legislative Advocate Clay
said there was a shortfall of state
revenues that could approach $6 billion. He said that Senator Peace suggested
a $1billion cut from the state
budget.
Mr. Clay reported that AB 952 (Kelley), regarding rebates for energy efficient
clothes washers, would possibly
go to the suspense file. Regarding AB 1561(Kelley) endangered species, Mr. Clay
was working to craft a
measure that dealt only with the lower Colorado River. He said SB 350 (Alpert),
regarding MWD excess
revenues, was moving to the Assembly. MWD has proposed amendments to this bill.
SB 621 (Costa) and SB
1029 (Perata), regarding water wheeling, went to Senate Appropriations.
Legislative Advocate Carpi’s report was received and filed. He described
changes in the legislature that would
result from Senator Jeffords' decision to leave the Republican party and become
an Independent. Mr. Carpi then
discussed Senator Feinstein's and Senator Calvert's joint news conference to
introduce their CALFED bills.
MWD Delegates Report. Director Parker reported that he attended a meeting of
the Rules and Ethics
Committee at MWD. He identified an issue that indicated a change in the way
that MWD viewed ethics. The
Diamond Valley Lake Recreation Program Group hired Kosmont Associates, although
Larry Kosmont had
been a member of the MWD Board up until last January. Director Parker said new
ethics rules stated that a
former Board member could not be involved in a profitable business relationship
with MWD until one year after
leaving the Board. Director Parker said many Committee members were not happy
with the decision to hire
Kosmont Associates. Director Parker also reported on the postponement of rate
revision studies until the end of
June or early part of July.
Director Lewis remarked that MWD’s public relations activities included
meeting representatives at the state
and federal levels and going into the local districts. He also said that MWD
was working to approve a
conceptual desalination program. Director Lewis expressed his pleasure at MWD
Assistant General Manager
Joe Tait’s ability to consolidate and streamline MWD programs.
Director Ball expressed his appreciation for being appointed an MWD delegate.
He said he had found that
there were MWD committee members dedicated to water reliability just as at the
Authority. He said MWD
committee members had also indicated their support of the desalination program.
Director Newton referred to a newspaper article he read that stated MWD had
started to draw down water from
Diamond Valley Lake. He asked if the question had been presented to the MWD
Board. Director Newton
believed that this water was to be used for emergency storage and that the Authority’s
emergency plan was
dependent on storage in that reservoir. Mr. Hess responded by saying that State
Water Project allocations had
been raised to 35% of entitlement, which would likely result in a smaller storage
withdrawal than reported in the
news article. He said a certain amount of water must be cycled every year and
this withdrawal should be within
the prescribed limit. Director Mason and Chair Turner reported that MWD had
other options for withdrawals as
well
MWD Rate Structure Update. Director of Imported Water Hess said that staff
reviewed MWD’s draft Tier 1
contract terms with the Water Policy Committee in April, and reviewed the terms
in May with the CWA member
agency general managers. The latest terms were released in April. He said MWD's
Rate Implementation
Committee had not yet reached consensus on the terms. He reported that the next
Rate Implementation
Committee meeting was scheduled for late June or early July. Mr. Hess said MWD
intended to have rate
structure white papers available before the workshop.
Colorado River Report. Colorado River Report received and filed. Director Bond
reported that Mexico agreed
to pay back 600,000 acre feet of water it had withheld from the Rio Grande.
He said the Authority, MWD, IID,
and CVWD sent a joint letter requesting $113 million in federal funds for the
Colorado River: $60 million was
identified for habitat enhancement projects for species using the Salton Sea;
$53 million was identified for
off-stream reservoirs along the All American Canal. He reported that all seven
Colorado River Basin states
recently sent a draft letter to the Secretary of Interior stating that the United
States was not responsible for
habitat restoration in a foreign country, as requested by the Defenders of Wildlife.
Update on IID/SDCWA water transfer and related Salton Sea issues. General Manager
Stapleton reviewed
water transfer and Salton Sea reclamation issues. She said there were currently
numerous environmental
reviews related to California's Colorado River Water Use Plan. The California
Plan included the CWA/IID and
other water transfers, a Quantification Settlement Agreement, Secretarial Implementation
Agreement, canal
lining projects, and the Coachella Groundwater Management Plan. She said originally,
the Salton Sea
restoration was to go before Congress before the water transfers moved forward.
A draft restoration
environmental review had been distributed, but had been delayed to review alternatives
that had not been
considered in the original draft. The Authority was looking at either implementing
the enhancement projects or
using the money it would have given the enhancement projects for the Salton
Sea restoration as a whole.
Information Items.
Report on MWD groundwater programs. Report received and filed.
Imported Water Activities report received and filed.
There being no further business to come before the Water Policy Committee,
Chair Tinker adjourned the
meeting at 4:08 p.m..
MINUTES OF THE FORMAL BOARD OF DIRECTORS MEETING
MAY 24, 2001
Chairman Turner called the formal Board of Directors meeting to order at 4:15
p.m. Director Mason led the
salute to the flag. Secretary of the Board Bond called roll. Directors present
were Ball, Bond, Broomell,
Buckner, Chenelle, Christensen, Dailey, Haddad, Irvin, Johnson, Knutson, Lewis,
Loveland, Mason, Newton,
Parker, Pocklington, Thompson, Tinker, Turner, Varty, Williams and Wilsman.
Absent were Directors
Bowersox, Cardenas, Jacob, Jaeschke, Krauel, McMillan, Madigan, Quist, Rhinerson
and Rogers. Also
present were General Manager Stapleton, General Counsel Hentschke and Deputy
General Manager Guild.
Chairman Turner declared a quorum.
There were no proxies for the meeting.
There were no additions to the agenda.
Director Thompson moved, Director Dailey seconded and the motion carried unanimously,
to approve the
minutes of the formal Board of Directors meeting on April 26, 2001.
There were no members of the public who wished to address the Board.
Chairman Turner asked Ms. Stapleton to instruct the Board how to operate the
new voting system.
Chairman Turner opened a public hearing at 4:25 p.m. regarding adoption of
a Resolution of Necessity
authorizing condemnation proceedings to acquire San Diego County Water Authority
easements on Assessor
Parcel Nos. 395-014-06 (Leung), 392-150-01, 10, and 15 (Hanson Aggregates),
392-130-41 (Hering),
392-030-23 (Lakeside Union School), 375-111-18 (Moore Family Trust), 375-111-21
(Difederico), 375-111-13
(Bartell), 375-040-31 (Rockland Recovery), and 395-160-05 (Suter), located in
Lakeside, for the
Moreno-Lakeside Pipeline Project.
Director of Right of Way Rose described the impacted properties, indicating
he had handed out a new
Resolution 2001-21 specifically stating that the McIntosh property was removed
from the original Resolution in
that that property was signed up earlier in the day.
Director Lewis asked if Authority staff would continue to negotiate with the
property owners regarding the price
of their properties and would staff bring back the results of those discussions
to the Board for its deliberation.
Mr. Rose said yes and stated if the acquisitions were over $50,000, the Board’s
authorization would be needed.
There was no one present who wised to address the Board regarding the proposed
condemnation resolution.
Chairman Turner closed the public hearing at 4:31 p.m. Director Chenelle moved,
Director Irvin seconded and
the motion carried unanimously, to adopt the following amended Resolution (without
the McIntosh parcel):
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY
DECLARING THE PUBLIC INTEREST AND NECESSITY FOR THE ACQUISITION OF CERTAIN PROEPRTY
INTERESTS FOR THE SAN DIEGO COUNTY WATER AUTHORITY IN OERDER TO CONSTRUCT THE
MORENO-LAKESIDE PIPELINE PROJECT AND AUTHORIZING AND DIRECTING PROCEEDINGS IN
EMINENT DOMAIN FOR THE PURPOSE OF ACQUIRING CERTAIN REAL PROPERTY IDENTIFIED
BY
ASSESSOR PARCEL NUMBERS 395-014-06 (LEUNG), 392-150-01, 10, 15 (TRI-WAY/HANSON),
392-030-23 (LAKESIDE UNION SCHOOL DISTRCIT), 392-130-41 (HERING), 375-111-18
(MOORE FAMILY
TRUST), 372-111-21 (DI FEDERICO), 375-111-13 (BARTELL), 375-040-31 (ROCKLAND
RECOVER),
395-160-05 (SUTER)
is numbered Resolution No. 2001-21 and is entered at page , Book 36 of Resolutions.
Chairman Turner opened a public hearing at 4:36 p.m. regarding adoption of
a Resolution of Necessity
authorizing condemnation proceedings to acquire San Diego County Water Authority
easements on Assessor
Parcel Nos. 269-130-06, 269-131-03 & 04, 303-070-29 and 312-010-36 (Santaluz,
LLC, a Delaware Limited
Liability Company formerly Black Mountain Ranch Developers, LLC, a Delaware
Limited Liability Company)
and 267-150-04, 269-131-05, and 269-130-05 (Black Mountain Ranch Limited Partnership)
located in the City
of San Diego, for the Additional Right of Way Width Project.
Mr. Rose reiterated this matter dealt with the widening of the Second Aqueduct
in particular, the Black Mountain
Ranch area. Mr. Rose handed out a letter from Latham & Watkins which dealt
with the Santaluz portion and
indicated the letter should be entered into the record. Mr. Rose stated there
were two owners affected by this
hearing. The other letter received which would be entered into the record was
from Black Mountain Ranch
requesting their portion of the hearing be continued until the next Board meeting.
Mr. Rose described the impacted properties using slides and how the easements
were necessary in order to
provide access and construction area to replace or repair Pipeline 3 within
the Second Aqueduct. He said the
easements the Authority were seeking to acquire did not allow for additional
pipelines, only construction access
and working room.
Mr. Rose indicated staff had had significant conversations with both owners
in trying to reach a settlement. Both
owners had proposed developments, Santaluz was a littler further along than
Black Mountain He said staff had
a two-pronged approach : one was the condemnation approach which the Board would
deal with today, and
two, the negotiations was the other side of the equation. Mr. Rose indicated
those negotiations would be
ongoing regardless of the action by the Board today.
Director Mason asked Mr. Rose to address the letter from Latham & Watkins
and the apparent conflict over
what the owners believed to be a negotiated easement versus what the Authority
was actually going to take. Mr.
Rose explained the property was currently sitting vacant , but the owner was
proposing a development process
that would encroach into the area that staff originally thought was needed.
Mr. Rose explained staff could live
with a smaller area and staff was working with the owners on those details at
this time; however there was no
guarantee that this project would finish up – the Authority needed to deal
with absolutes that the Authority would
have the right of way in order to repair or replace Pipeline 3.
Mr. Hentschke added that in the course of the staff’s investigation of
this issue , the Engineering and Right of
Way departments had determined that in a raw land condition as the properties
sat right now, the wider
easement was necessary. As the property was developed, the ability to narrow
that right of way may exist as
part of the design and improvement of the subdivision and the development project;
however, because the
subdivision and the development of the project had not reached the stage where
there were ,in fact, final
improvements in the ground and it was moving forward, the recommendation of
staff was that the necessity for
the acquisition was the wider, subject to the ability to reduce the amount of
the acquisition as the property
developed, and the Authority would know exactly where the improvements necessary
for the subdivision
occurred.
Director Mason asked if the same thing could be accomplished by taking a narrower,
permanent easement and
then the wider, temporary construction easement. He was concerned there was
not a good method of reducing
the size of the Authority’s easement once it was acquired. Mr. Hentschke
stated that at this stage regarding the
Resolution of Necessity, it had been prepared in a manner that allowed staff
to do that kind of negotiation prior
to the institution of the condemnation proceeding and so the staff recommendation
was to proceed forward with
the Resolution of Necessity and then, with hope, staff could resolve it during
the negotiation phase if the
development process proceeds where there was more certainty, action could always
be filed with a lesser
amount of take and avoid the abandonment issues.
Director Mason asked once the Board had given staff the authority to take this
by eminent domain, was the
Authority out of the negotiation process. Mr. Hentschke stated absolutely not.
He explained the Resolution of
Necessary was often the start of negotiations. The Authority, after the adoption
of the Resolution of Necessity,
had six months to file the eminent domain proceedings. He said there was significant
time to negotiate after
that. He said different property owners liked to settle at different stages
of the process, but in order for the
Authority to obtain the jurisdiction to proceed, if negotiations were not successful,
the Resolution of Necessity
was a jurisdictional prerequisite and that was why it was being brought before
the Board now so that staff could
meet the timelines necessary to protect the aqueduct in the future.
Chair Turner indicated he had received two speaker slips. He asked Mr. Allen
Haynie to address the Board. In
his stead, Mr. David Stearn, 16236 San Dieguito Road, Rancho Santa Fe, CA 92067
addressed the Board.
He stated Santaluz had been negotiating in good faith with CWA staff on reducing
the easement area and the
impacts to their residential lots. Mr. Stearn disagreed with a statement Mr.
Rose had made. Mr. Stearn
indicated Santaluz was grading adjacent to the easement area and to date, Santaluz
had in the neighborhood of
$200 million of facilities in the ground. He indicated Santaluz was very much
committed to moving forward. He
stated Santaluz was happy with the apparent resolution with staff of the reduced
easement, but failed to
understand why the Resolution of Necessity needed to move forward with the legal
description for taking more
area than was really needed. He said since the public good could be accomplished
with the reduced
easement, that that was to the least private injury. He respectfully requested
a continuance in the hopes that the
agreed-upon legal description would be attached to the Resolution of Necessity.
Mr. Hentschke stated for the record, that the letter from Black Mountain Ranch
dated May 22, 2001, requesting
a continuance to the next Board meeting as it pertained to property owned by
Black Mountain Ranch Limited
Partnership, and also the letter from Latham & Watkins dated May 23, 2001,
on behalf of Santaluz, had both
been provided to the Clerk of the Board and those letters would be made part
of the record.
Chair Turner closed the public hearing at 4:49 p.m.
Director Thompson asked which statement was correct: the one by Mr. Rose stating
there was no construction,
no movement toward the starting of this project, or the one by Mr. Stearn stating
Santaluz had $200 million in the
ground. Mr. Rose explained there was grading activity going on, but not necessarily
within the Authority’s
easement area.
Director Pocklington asked if today’s action could be delayed for one
month. Mr. Rose stated there was a risk
as concerned what was referred to as the “date of value” that would
be used should the condemnation
proceedings move forward. He said as the Santaluz project moved forward, their
property would get more and
more valuable. Ms. Stapleton indicated staff was working with a number of owners,
and in one of the letters,
staff indicated that as long as Santaluz was willing to sign that the valuation
would be set, which they were
unwilling to do so, that staff didn’t have a problem continuing. She strongly
recommended the Board not expose
the Authority to additional costs.
Mr. Stearn again addressed the Board stating that although Santaluz had not
agreed to the appraisal amount,
they would agree to a “date of value” to be established if proceedings
would move quickly to resolution.
Mr. Hentschke stated in order to incorporate all of the questions from the
Directors, the answers to those
questions, and the further testimony that just occurred, the Chair needed to
reopen the public hearing. Chair
Turner did so at 4:53 p.m.
Chair Turner stated Mr. Haynie had entered the room and since the public hearing
was reopened, he asked Mr.
Haynie to address the Board. Mr. Allen Haynie, 701 B Street, Suite 2100, San
Diego, California 92101,
representing Santaluz, addressed the Board. Mr. Haynie stated there had a real
effort to try to work out the
issues between the Authority and Santaluz. He stated the request Santaluz was
asking today, to at least
eliminate that issue, was to get the correct right of way designated in connection
with the Resolution of
Necessity. Santaluz did not understand why the Authority would want to go forward
with an easement that was
more significant that they needed. He stated Santaluz was only asking that issue
to be continued to the next
Board meeting and attach the legal description that both sides had agreed on
for the new right of way
acquisition. Mr. Haynie said Santaluz had offered to agree to a valuation date
of May 24, 2001 provided the
parties moved forward on the agreed-to easement and that there would be an agreed-to
end date – that either
CWA and Santaluz reach closure within a certain period of time, or the Board
would come back and adopt a
Resolution of Necessity with the new alignment.
Mr. Hentschke recommended the Chair terminate the public input portion of the
public hearing only, but to
continue the public hearing for a 30 day period. He indicated the Chair could
terminate the public testimony
portion without closing the hearing and going through the technicalities of
reopening like was done before.
Then, once the Board decided what it wanted to do with both continuances, it
could act accordingly. Mr.
Hentschke stated if it was the discretion of the Chair to grant the continuance
of Black Mountain Ranch only, the
action would be to continue that portion of the hearing , close the hearing
with regard to the Santaluz property
and move forward with the Resolution of Necessity.
Director Chenelle asked if the Chair got to make that decision alone or did
the whole Board get to vote on it.
Mr. Hentschke replied the discretion of the Chair would be to close the hearing
with regard to the Santaluz
property so that the Board could take action on the Resolution of Necessity
with regard to Santaluz.
Chair Turner then closed the hearing on Santaluz, continued the hearing on
Black Mountain Ranch and asked
for a motion to accept staff’s recommendation.
Director Chenelle moved, Director Dailey seconded and the motion passed to
adopt the Resolution of
Necessity 2001-02 with regard to the Santaluz property alone.
Director Tinker stated one of the actions this Board had to take was to find
a necessity for this project, and yet
this Board did not yet know whether it had a necessity for the full 75 foot
width in all places. He said he was
uncomfortable in reaching that finding at this point the way staff had described
the project.
Ms. Stapleton said that with the existing condition of the property, the Authority
needed the entire width. She
added the Authority may not need the entire width in the future, but presently
staff’s recommendation would be
that the Board make a finding that the Authority did need that width as articulated
in the staff report.
Mr. Rose added that the Authority could reduce the easement substantially in
certain areas and in other, not; but
that would be dependent upon Santaluz’s proposed development. He said that
was what staff had been
working on - this two-pronged approach to this acquisition. He said the Authority
needed the right of way and
could move forward in the approach it had today, but also, staff had been working
very hard to negotiate and
work out, based upon their development, what exactly the Authority needed. He
said those efforts were not
going to stop with the adoption of the Resolution for the larger area.
Director Dailey stated once construction was started, it was harder to change
anything than prior to
construction. She said in the past this Board had to go back and ask for more
easements, so this Board should
not make the mistake from the very beginning of giving up what rightfully should
be the Authority’s. She said the
Authority could continue to work with them, but it should not give it up now
because it may have a problem later.
Director Lewis concurred with Director Dailey.
Director Haddad said he was confused about the letter from the attorneys, Latham
and Watkins. He said
Latham and Watkins in their letter of March 28 described with more certainty
than the fuzzy situation being
described here today. He said this letter would appear to indicate that both
sides came to an understanding,
but that now, one side was not now holding to what was discussed then.
Mr. Rose answered that there had not been a change of mind as to the area that
would be used after their
development was completed -- that issue was moving forward. But the project
had not been built yet and the
Authority wanted to be sure it had the right of way now in order to be able
to prepare. Mr. Rose indicated it was
an awkward situation to try to fit in between their development and what existed
today. Their project was moving
forward, but was not actually there yet and the Authority needed to be able
to secure its rights.
Mr. Hentschke stated given the discussion and information relating to the state
of the grading, he would
recommend a minor modification to the Resolution to enhance staff’s and
the General Manager’s ability to
implement the recommendation of the Right of Way manager with regard to the
taking of a lesser estate, if
necessary, at the time that the Authority filed. He indicated he would read
the amended paragraph 10 of the
handed-out resolution: “All appropriate officers, representative and attorneys
of the Authority are authorized
and directed to acquire the property described in exhibit A (wider right of
way) attached hereto, or a lesser
amount of property as determined by the General Manager at the time of filing
depending upon the state of
development or upon the negotiations between staff and the property owner at
that time. That would give staff
the full ability to acquire the wider right of way or, upon a field inspection,
determine that a lesser extent is
necessary, to proceed forward with the necessary steps to protect the Authority’s
interest. At that time it would
be a determination of the General Manager at the time the Authority filed the
eminent domain action, if such
action would be necessary.”
Chair Turner asked if the maker of the motion, and the second, would agree
to that modification. They indicated
affirmatively.
The Board adopted the amended Resolution of Necessary entitled:
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY
DECLARING THE PUBLIC INTEREST AND NECESSITY FOR THE ACQUISITION OF PROPERTY
FOR THE
SAN DIEGO COUNTY WATER AUTHORITY SECOND AQUEDUCT WIDENING TO THE EAST OF PIPELINE
3 AT THE BLACK MOUNTAIN RANCH AREA AND AUTHORIZING AND DIRECTING PROCEEDINGS
IN
EMINENT DOMAIN FOR THE PURPOSE OF ACQUIRING CERTAIN REAL PROPERTY INTERESTS
TO BE
USED IN CONNECTION THEREWITH ON THE PROPERTY IDENTIFIED BY THE FOLLIWNG SDCWA
NUMBER: 482-AR (APN: 269-131-03, 269-130-06, 303-070-29, 312-010-36)
is numbered 2001-22 and entered at page , Book 36 of Resolutions.
Director Broomell left the meeting at this time.
Chair Turner then skipped to Item 11-1, presentations to Creating Paths to
Partnerships scholarship winners.
EBE Manager Smith explained Creating Paths to Partnerships was a scholarship
program created last year by
the Authority and its participating member agencies. Mr. Smith made presentations
to Liborio Espinoza,
Teresa Natschke, Sylvia Galindo and Aoiffe Edwards who received scholarships
of $1000 each
REPORTS BYCOMMITTEE CHAIRS
Administrative and Legal Committee – Director Dailey indicated her committee
unanimously passed Item 9-3.
On the Board Calendar of Events, the Board was asked to continue to hold June
21 and 22 until notification was
made next week when the one day retreat would be.
Engineering & Operations Committee – Director Haddad indicated everything
was handled at committee.
Fiscal Policy Committee – Director Pocklington indicated Items 9-1 and
9-2-A and B were both passed at
committee.
Planning & Environmental Committee – Director Thompson indicated everything
was handled during
committee.
Public Affairs Committee – Director Johnson indicated everything was handled
during the committee meeting.
Water Policy Committee – Director Tinker indicated Item 9-17 was approved
by Committee and recommended
to the Board for approval.
CONSENT CALENDAR
Director Pocklington moved, Director Dailey seconded and the motion carried,
to approve the Consent
Calendar.
Mr. Hentschke stated that under the new Administrative Code, the Board now
had a new procedure wherein it
required the title of ordinances be read. This would give the public notice
with regard to those items of this
Board that were of significant importance. Mr. Hentschke read for the record
Item 9-2-a and Item 9-2-b.
Item 9-1.The Board noted and filed the monthly Treasurer’s report.
Item 9-2.The Board adopted said Ordinances entitled
a)ORDINANCE OF THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY
FIXING A WATER STANDBY AVAILABILITY CHARGE ON LAND WITHIN THE BOUNDARIES OF
THE
AUTHORITY FOR FISCAL YEAR 2001/2002.
is numbered 2001-01 and entered at page , Book 3 of Ordinances.
b)ORDINANCE OF THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY
(1)
SETTING THE RATES AND CHARGES FOR THE DELIVERY AND SUPPLY OF WATER AND (2)
CONTINUING THE EXISTING STANDBY AVAILABILITY CHARGE.
is numbered 2001-02 and entered at page , Book 3 of Ordinances.
Directors Mason and Tinker voted no on item 9-2-b.
Item 9-3.The Board adopted said Resolution entitled
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY
APPROVING AN AMENDMENT TO CONTRTACT WITH THE BOARD OF ADMINISTRATION CALIFORNIA
POUBILC EMPLOYEES’ RETIREMENT SYSTEM
is numbered 2001-23 and entered at page , Book 36 of Resolutions
Item 9-4The Board authorized the General Manager to enter into agreements with
Honeywell DMC to
administer, and with member agencies, the Metropolitan Water District, and the
U.S. Bureau of Reclamation to
fund the Water Conservation Voucher Incentive Program in an amount not to exceed
$9,450,000.
Item 9-5.The Board authorized the General Manager to enter into an agreement
with VIEWtech, Inc. to
administer the Landscape Assistance and Residential Survey Programs and with
member agencies and the
Metropolitan Water District to fund the programs in an amount not to exceed
$960,000.
Item 9-6.The Board authorized the General Manager to enter into an agreement
with Mission Resource
Conservation District to administer the Agriculture Water Management Program
in an amount not to exceed
$195,000.
Item 9-7.The Board approved Financial Assistance Program applications –
April 2001 submittal period not to
exceed $80,153.
Item 9-8.The Board authorized the General Manager to transfer ownership and
management responsibility of
the Crestridge Habitat Management Area to the California Department of Fish
and Game.
Item 9-9.The Board authorized the General Manager to amend the professional
services agreement with ASL
Consulting Engineers to conduct Phase 2B of the Lower San Luis Rey River Valley
Groundwater Storage and
Recovery Feasibility Study for an amount not to exceed $1,400,000.
Item 9-10.The Board received Seawater Desalination Action Plan Status Report
and authorized the General
Manager to negotiate/execute a Cooperative Agreement among Carlsbad Municipal
Water District, the City of
Oceanside and the Authority regarding seawater desalination in the City of Carlsbad,
and a Letter of Intent
between the Authority and Poseidon Resources Corporation regarding the feasibility
of a seawater desalination
project at or near the South Bay Power Plant.
Item 9-11.The Board approved proposed energy strategy for the County Water
Authority.
Item 9-12.The Board authorized the General Manager to accept Sixth Amendment
for $58,170 and approved
Seventh Amendment for $438,120 to the professional services agreement with MARRS
Services, Inc. for a total
contract amount of $1,707,977 to provide as-needed Capital Improvement Program
project scheduling.
Item 9-13.The Board authorized the General Manager to execute First Amendment
to the San Diego 17 Pump
Station agreement between the City of San Diego and the Authority for the construction
of the San Diego 22
Flow Control Facility.
Item 9-14.The Board authorized the General Manager to execute the Seventh Amendment
to the Parsons-Harza
Team professional services agreement for $2.3 million to provide design and
construction support services
during construction of the Olivenhain Dam and the Lake Hodges Portal.
Item 9-15.The Board approved final acceptance, recording Notice of Completion,
and release of retention for
Valley Center Pump Station and Flow Control Facility.
Item 9-16.The Board authorized the General Manager to execute a contract with
Hawthorne Machinery Co., for
procurement of a compact rubber tracked tractor in the amount of $84,215.50.
Item 9-17.The Board amended the Authority’s Legislative Guidelines as
they pertain to land use and water
management planning.
BOARD AND STAFF MATTERS
Item 10-1.Mr. Hentschke stated there was no need for a Closed Session. He said
this matter was
recommended in Committee for authorization to enter into an escrow to acquire
the property at the Authority’s
appraised evaluation with regard to the property itself, and at the negotiated
price with regard to certain street
improvements. He said the recommendation would be to adopt a motion authorizing
acquisition of the property
as recommended by the Committee.
Director Knutson moved, Director Ball seconded and the motion passed.
CHAIR’S REPORT
Chair Turner stated he had asked staff to indicate a time limit for each agenda
item on each committee so that
the Chairs and the Board members would try to keep within that time line in
order to keep on schedule
throughout the day.
STAFF REPORTS
Ms. Stapleton did not make a report.
GENERAL COUNSEL’S REPORT
Mr. Hentschke did not make a report.
ACWA-JPIA REPORT
Mr. Knutson indicated he had attended his first JPIA meeting and had learned
a lot. He said the President, Mr.
Buckner, ran a tight ship. He indicated JPIA was in good financial condition,
although there was a small
problem with the workmen’s compensation area in that the deregulation by
the state in 1995 had caused many
of the insurance carriers to go out of business. He said now most of the workmen’s
compensation policies
were written just by three companies and as a result, the executive committee
raised the workmen’s comp rate
by 20% this year. Also the retrospective premium adjustment fund now had all
been combined, both the liability
and property and workmen’s comp, so there would not be two refunds and
then one would have to put in a
check.
SAN DIEGO AREA WASTWATER MANAGEMENT DISTRICT REPORT
Director Fowler said there was no meeting. Chair Turner asked if they were
meeting at all and should this item
be taken off the agenda. Director Chenelle stated they only met once a year
in December.
SANDAG
Director Fowler stated SANDAG had been embroiled in the debate on how to limit
growth. Also SANDAG was
interested in finding an agency to lead the charge on power and had looked at
the Authority as one possible
alternative. He said he had indicated our interest was primarily for our own
needs for power and those of our
member agencies.
There being no further business to come before the Board, Chair Turner adjourned
the meeting at 5:31 p.m.
____________________________________
James F. Turner,
Chair
jis
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