MINUTES OF THE FORMAL BOARD OF DIRECTORS' MEETING

Feb. 23, 2006

ADMINISTRATIVE AND FINANCE COMMITTEE

CALL TO ORDER / ROLL CALL

Chair Dixon called the Administrative and Finance Committee meeting to order at 8:32 a.m. Committee members present were Chair Dixon, Vice Chairs Dailey and Tu, Directors Bowersox, Brammell, Johnson, Parker, Steiner, and Williams. Committee members absent were Directors Knutson, Muir, Price, and Watton and Representative Slater-Price. Also present were Directors Bond, Ferguson, Irvin, Lewanski, Lewis, Linden, Martin, Rogers, and Sundram. At that time, there was a quorum of the Committee. Staff present was General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Finance/Treasurer Brust, Director of Human Resources Glover, and Director of Administrative Services Young.

ADDITIONS TO AGENDA

There were no additions to the agenda.

PUBLIC COMMENT

There were no members of the public who wished to address the Committee.

CHAIR’S REPORT

Chair Dixon reported that a Rate Model Work Group meeting was held on February 16 and the next meeting would be on March 21, 2006.

He also referenced the memo in the Board packet regarding committee and formal Board meeting start and end times and asked Directors to let him know if they had preferences.

I. CONSENT CALENDAR

1. Treasurer’s report.

Staff recommendation: Note and file monthly Treasurer’s report.

Director Tu moved, Director Steiner seconded, and the motion carried unanimously to approve the Consent Calendar.

II. ACTION/DISCUSSION

• Approve Resolution of Intention to amend the contract between the California Public Employees’ Retirement System Board of Administration and the San Diego County Water Authority Board of Directors effective July 1, 2006.

Staff recommendation: Adopt Resolution of Intention No. 2006-___ to approve 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.

Mr. Glover provided background information. He stated that in June 2003 the Board approved the benefit as part of the four-year Memoranda of Understanding with the bargaining units, and that this benefit was to be implemented in the final year of the contract beginning July 1, 2006. He explained that CalPERS had a three-step process the Water Authority was required to comply with to implement the change. The notice of intention and disclosure of future costs of this benefit was the first step in the process. The second step was a secret ballot vote by all eligible employees that was required when there was an increase in the employee contribution rate. The third step was the approval of the final resolution to amend the contract that was scheduled for the March Board meeting.

There was discussion among the Directors regarding the Water Authority’s pension plan. Directors Brammell and Rogers commented on the Water Authority’s employer contribution as compared to the employees’ contribution to the Plan. Director Steiner inquired if the Board was in fact being asked to implement something that was already approved. Mr. Glover confirmed that this action was just a formality to implement a benefit that was already negotiated and approved. Director Dailey suggested that employees should be made aware of the Board’s discussion before the next negotiation process. Director Lewis suggested that a two-tier pension system be considered going into the next negotiation process.

Director Tu moved, Director Steiner seconded, and the motion carried unanimously to amend the contract between the California Public Employees’ Retirement System Board of Administration and the San Diego County Water Authority Board of Directors effective July 1, 2006.

III. INFORMATION

Controller Wade provided a presentation on the new format for the monthly financial statements. The statements were updated in conjunction with the PeopleSoft upgrade, to be consistent with the Comprehensive Annual Financial Report, and to enhance readability and understandability. Ms. Wade explained that this was a Board tool for oversight of the Water Authority’s financial position and that she was open to any suggestions that would make it more useful for them.

Director Irvin suggested a graph be added to track expenses to date versus budgeted expenses. Director Sundram suggested that a larger font be used on the Budget Status Report.

The following items were noted and filed:

1. Controller’s presentation and report on monthly financial statements.
2. Report on MWD’s Tier 2 charge for Calendar Year 2005.
3. Board of Directors Fourth Quarter 2005 payments and attendance.
4. Board Calendar.

IV. ADJOURNMENT

There being no further business to come before the Administrative and

Finance Committee, Chair Dixon adjourned the meeting at 8:50 a.m.

WATER PLANNING COMMITTEE MEETING

CALL TO ORDER/ROLL CALL

Vice Chair Lewinger called the Water Planning Committee meeting to order at 9:05 a.m. Committee members present were Vice Chair Watton, and Directors Dixon, Irvin, Linden, Martin, Quist, Rogers, Saunders, and Sundram. Committee members absent were Directors Haddad*, Loveland, Pocklington, and Rhinerson. Also present were Directors Bond, Bowersox, Brammell, Dailey, Ferguson, Johnson, Lewanski, Lewis, Parker, Steiner, Thompson, Tu and Williams. At that time, there was a quorum of the full Board and the meeting was conducted as a meeting of the Board; however only the committee members participated in the vote. Staff present was General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Water Resources Weinberg, Seawater Desalination Program Manager Yamada, Water Resources Manager Pyle, and Principal Water Resources Specialist Friehauf.

ADDITIONS TO AGENDA

There were no additions to the agenda.

PUBLIC COMMENT

There were no members of the public who wished to address the committee.

CHAIR’S REPORT

There was no Chair’s report.

Director’s Comments

None.

I. CONSENT CALENDAR

None

ACTION / DISCUSSION

Vice Chair Lewinger requested items be taken out of order.

4. Regional Seawater Desalination.

4-A. Update on Regional Seawater Desalination.

Mr. Weinberg presented to the committee an update on the regional and local projects. The draft of the Water Authority’s EIR text and supporting studies were complete. Site access information per the licensing agreement was provided to Poseidon and Cabrillo in early January. They had requested additional time to review that data. Staff and consultants met with Cabrillo and Poseidon on February 14, 2006. Cabrillo requested a review of the draft EIR prior to being released to the public. This would result in a slight delay of the public release until March. Cabrillo management assured the Water Authority that it would expedite the review of the EIR.

In terms of the Poseidon/Carlsbad EIR, the final was released in December last year. No additional action was taken by Carlsbad. The Water Authority’s understanding from Carlsbad staff was that negotiations were still underway between Carlsbad and Poseidon regarding the development agreement that was associated with the EIR and that because of those ongoing negotiations, no further action had been scheduled for certification or project approval.

The State Lands Commission (SLC) managed lands that were in trust for the people of California and those lands included submerged lands along the California coast from the medium-high tide line to about three miles offshore. Cabrillo leased two jetties that were adjacent to the power plant. The draft resolution that was before the SLC last week regarding Once-Through-Cooling (OTC) called for the elimination of OTC. Specifically, it would require the commission not to approve or extend leases for OTC facilities pass year 2020. Significant public testimony was held at the SLC in Sacramento. The action resolution was deferred to the SLC April meeting. The use of OTC clearly enhanced the cost effectiveness and permitting of the Encina project. Staff was working with other desalination agencies and power interests to coordinate a response strategy. The focus areas for response included water supply impacts, energy supply reliability and costs, statewide environmental impacts, and the existence of an extensive regulatory process already in place to evaluate OTC.

Chair Haddad arrived at 9:25 a.m. and resumed the duties of the chair.

4-B CLOSED SESSION
Conference with Real Property Negotiator
Government Code §54956.8
Property: Property interests for a regional desalination project at the Encina Power Plant site in the City of Carlsbad
Agency Negotiators: Maureen Stapleton, Daniel Hentschke, Ken Weinberg
Negotiating Parties: Cabrillo Power, LLC;
Poseidon Resources, Inc.
Under Negotiations: Price and terms of acquisition

General Counsel Hentschke stated that the closed session was not needed.

1. Adoption of Annexation Policies and deletion of Section 16.1(a) of the Water Authority’s Administration Code .  

Staff recommendation: Adopt recommended annexation policies included as Attachment 1; and delete Section 16.1(a) of the Water Authority’s Administrative Code.

Director Dailey recused herself from voting on the adoption of annexation policies.

Ms. Friehauf gave a report on annexation policies, and proposed revisions.

The report included the development of the annexation policies, and general comments from the January 12, 2006, Special Board meeting. Ms. Friehauf reviewed the revised policies 2, 3, 7, 8, 9 and 10.

Director Lewinger moved, Director Quist seconded, and the motion carried unanimously to approve adoption of Annexation Policies and deletion of Section 16.1(a) of the Water Authority’s Administration Code.

2. Report on preparation of the Water Authority’s Drought Management Plan.

Ms. Friehauf briefed the Board on Water Authority’s drought management plan (DMP) and the preparation to minimize impacts to the region.

3. Pipeline 6 update.

Mr. Pyle updated the Board on Pipeline 6. He reported on items that included the timing of need, and both efforts on behalf of Metropolitan Water District and the Water Authority.

III INFORMATION

The following item was received and filed:

1. Water Resources Report.

IV Adjournment

There being no further business to come before the Water Planning Committee, Chair Haddad adjourned the meeting 10:00 a.m.

LEGISLATION, CONSERVATION AND OUTREACH COMMITTEE
CALL TO ORDER/ROLL CALL

Chair Steiner called the Legislation, Conservation and Outreach Committee to order at 210:03 a :35 p.m. Committee members present were Chair Steiner, Vice Chairs Croucher and Irvin and Directors Bond, Dailey, Ferguson, Lewanski, Lewis, Rhinerson, Thompson, Tu, and Williams. Absent were Directors Morrison and Price. Also present were Directors Bowersox, Brammell, Broomell, Dixon, Haddad, Johnson, Lewinger, Linden, Martin, Parker, Quist, Rogers, Saunders, Sundram, and Watton. At the time, there was a quorum of the full Board and the meeting was conducted as a meeting of the Board; however, only committee members participated in the vote. Staff present was was General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Public Affairs Jacoby, Director of Administrative Services Young, Water Resources Manager Roy and Principal Water Resources Specialist Stadler.

ADDITIONS TO THE AGENDA

There were no additions to the agenda.

PUBLIC COMMENT

Messrs. Cunningham, David Otterstein, and David Flores, of San Diego, California, spoke in opposition to the waterless urinals.

CHAIR’S REPORT

Chair Steiner reviewed the rules of order for the committees of the Board. She also stated that SCOOP was a standing subcommittee of the Board, and reports to the Board at the Legislation, Conservation and Outreach Committee. SCOOP was not a subcommittee of the Legislation, Conservation and Outreach Committee.

DIRECTOR’S COMMENTS

There were no comments from the Directors.

REPORT FROM DIRECTORS

Chair Steiner reported that she attended the CSDA dinner and Ben Clay spoke on legislation affecting special districts. Director Thompson reported that he had attended the CRWU meeting and a program on water marketing would be presented in December. Director Ferguson stated she had attended the CSDA dinner as well as the Council of Water Utilities meeting. Director Rhinerson attended the Conference of the United States Desalination Coalition. Director Rhinerson reported that legislation related to desalination was discussed. Director Croucher reported that he attended the Chamber’s Congressional Luncheon.

I. CONSENT CALENDAR

There were no items on the Consent Calendar.

II. ACTION/DISCUSSION

1. Small Contractor Outreach and Opportunities Program (SCOOP) Small Business Skills Training Contract.

Staff recommendation: Award a Professional Services Contract to GCAP Services, Inc. for SCOOP small business skills training services through June 30, 2007, with an option to extend the contract annually for two years, for a total not-to-exceed amount of $300,000.

Director Irvin moved, Director Tu seconded, and the motion carried unanimously to approve staff recommendation to award a Professional Services Contract to GCAP Services, Inc.

2. Research on Zero Consumption Urinals.

Ms. Roy reported that ANSI is researching and developing a standard on waterless urinals. Agency consideration of legislation will be put on hold pending the ANSI results.

3. Adoption of Water Resources Investment Fund policy principles

Staff recommendation: Adopt the proposed policy principles regarding the Water Resources Investment Fund.

Ms. Stapleton and Mr. Stadler presented proposed Water Resources Investment Fund policy principles. Director Irvin moved, Director Johnson seconded, and the motion carried. Director Thompson voted no.

4. Legislative issues.

4-A Report by Carpi and Clay.

Legislative Advocate Jonathan Clay reported on issues in Sacramento and Legislative Advocate Ken Carpi reported on issues in Washington, D.C.

III. INFORMATION

1. News Clip on Conservation coverage. A news clip was shown regarding water conservation.

The following items were received and filed:

2. SCOOP quarterly report.

3. Report on conservation efforts.

4. Water Conservation Garden report.

5. Outreach activities for the month of January.

IV. ADJOURNMENT

There being no further business to come before the Legislation, Conservation and Outreach Committee, Chair Steiner adjourned the meeting at 11:29 a.m.

IMPORTED WATER COMMITTEE

CALL TO ORDER / ROLL CALL

Vice Chair Saunders called the Imported Water Committee to order at 11:33 a.m. Committee members present Vice Chair Martin and Directors Bond, Bowersox, Broomell, Haddad, Lewis, Linden, Johnson, Parker, and Quist. Committee members absent were Directors Muir, Pocklington, and Representative Slater-Price. Also present were Directors Brammell, Croucher, Dailey, Ferguson, Irvin, Lewanski, Lewinger, Morrison, Rhinerson, Rogers, Sundram, Thompson, Watton, and Williams. At that time, there was a quorum of the Board and the meeting was conducted as a meeting of the Board; however, only committee members participated in the vote. Staff present included General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Imported Water Hess, Assistant General Counsel Taylor, Interagency Program Manager Chen, and others.

ADDITIONS TO AGENDA

There were no additions to the agenda.

PUBLIC COMMENT

There were no members of the public who wished to address the Committee.

CHAIR’S REPORT

Vice Chair Saunders reviewed the Committee’s agenda. He stated that a Board tour of the Coachella Canal was scheduled for March 9.

4-A Director’s comments.

Director Lewis encouraged Board members to attend the Coachella Canal tour.

CONSENT CALENDAR

There were no items on the consent calendar.

II. ACTION/DISCUSSION

1. MWD Issues and Activities update.

1-A MWD Delegates report.

The delegates discussed the collaboration that was developing between the Water Authority and the Los Angeles delegations, the appointment of Jeffrey Kightlinger in the MWD CEO position, a proposed MWD Bay-Delta mission statement, and MWD’s reserves.

1-B Metropolitan Water District reserve funds.

Ms. Chen reported on MWD’s various funds and its reserve policy evolution. Director Lewis commented that he requested this presentation to keep the Board informed of MWD’s financial processes.

2. Colorado River.

2-A Colorado River Basin States preliminary proposal for interim shortage guidelines and coordinated operation of Lake Mead and Lake Powell.

Mr. Taylor reviewed the Seven Basin States preliminary proposal for interim shortage guidelines for the Lower Basin and conjunctive operation rules for Lakes Powell and Mead.

2-B Report by Colorado River Board representative.

Director Bond reviewed the last Colorado River Board meeting, where the board discussed the basin states shortage guidelines proposal and a cloud seeding program.

3. Quantification Settlement Agreement.

3-A QSA Ad Hoc Committee report.

Director Watton stated that the Ad Hoc Committee was briefed on the status of dispute resolution issues with IID, and that the dispute panel would meet later today.

The Committee recessed at 12:13 p.m.

The Committee reconvened and went into closed session at 2:35 p.m.

3-B CLOSED SESSION:
Conference with Real Property Negotiator
Government Code Section: 54956.8
Property: 247.97 acre Riverside Parcel 733-040-003
Agency Negotiators: Daniel S. Hentschke, William J. Rose, Ken Steele, William Busch, Bill Tippets
Negotiating Parties: Dov Grajcer
Under Negotiations: Price and Terms of option/acquisition

3-C CLOSED SESSION:
Conference with Real Property Negotiator
Government Code §54956.8
Property: Riverside County Parcels
APN 733-280-035 (640 Acres), 733-150-054 (240 Acres)
Agency Negotiators: Daniel S. Hentschke, William J. Rose, Ken Steele, William Busch, Bill Tippets
Negotiating Parties: State Lands Commission
Under Negotiation: Price and terms of option/acquisition

3-D CLOSED SESSION:
Conference with Legal Counsel – Potential Litigation
Government Code §54956.9(b) – One case

The Committee reconvened at 3:08 p.m. General Counsel Hentschke stated that the Committee discussed the closed session items 3-B and 3-C and that there was nothing to report. Regarding item 3-D, Mr. Hentschke stated that the Committee recommended that the Board vote to accept the interim settlement agreement for resolution of pending dispute between Imperial Irrigation District and the Water Authority.

III. INFORMATION

The following information item was noted and filed:

1. Imported Water Activities report.

IV. ADJOURNMENT

There being no further business to come before the Imported Water Committee, Vice Chair Saunders adjourned the meeting at 3:08 p.m.

ENGINEERING AND OPERATIONS COMMITTEE

CALL TO ORDER / ROLL CALL

Chair Knutson called the Engineering and Operations Committee to order at 1:03 p.m. Committee members present were Chair Knutson, Vice Chairs Ferguson and Johnson and Directors Brammell, Broomell, Croucher, Lewanski, Lewinger, Morrison, Rogers, Sundram, Thompson and Tu. Committee member Loveland was absent. Other Board members present were Bond, Bowersox, Dailey, Irvin, Lewis, Linden, Martin, Parker, Quist, Rhinerson, Saunders, Steiner, Watton and Williams. At that time, there was a quorum of the Board and the meeting was conducted as a meeting of the Board; however, only committee members participated in the vote. Staff present was General Manager Stapleton, General Counsel Hentschke, Assistant General Manager Cushman, Deputy General Manager Lanspery, Director of Engineering Economides, Assistant Director of Engineering Stift, Director of Right of Way Rose, O&M Manager Stine, Engineering Manager Steele, Senior Engineer Chamberlain, Engineer P.E. Rodgers, Principal Engineer Garvey and Water Resources Manager Pyle.

ADDITIONS TO AGENDA

There were no additions to the agenda.

PUBLIC COMMENT

There were no members of the public who wished to address the Committee.

CHAIR’S REPORT

Chair Knutson reported on the Special Engineering and Operations Committee meeting on February 9 th, 2006 regarding the Lake Hodges Pump Station projects.

I. CONSENT CALENDAR

1. Professional Services Contract with Overland Pacific & Cutler Inc., for as-needed right of way acquisition services.

Staff recommendation: Award a three-year Professional Services Contract, with a one-year option, to Overland Pacific & Cutler Inc., in an amount not-to-exceed $600,000 to provide as-needed right of way acquisition services for capital improvement and operating projects for fiscal years 2006 through 2010.

Vice Chair Johnson moved, Committee member Croucher seconded and the motion carried unanimously to adopt the Consent Calendar.

II. ACTION/DISCUSSION

1. Fiscal Year 2006 Semi-annual report on the Capital Improvement Program. (Discussion)

Mr. Economides gave a presentation on the CIP.

Chair Knutson informed the Committee that Action/Discussion agenda items 3 and 4 would be heard first.

3. Increase the budget, amend two consultant contracts, and accept and approve Change Order 11 to the construction contract for the Rancho Peñasquitos Pressure Control/Hydroelectric Facility.

Staff recommendation: Increase the Rancho Peñasquitos Pressure Control/Hydroelectric Facility project budget by $1,375,000 for a total budget of $35,097,000; and

A. Accept the first amendment for $193,000 and approve the second amendment for $474,000 to RBKA’s construction management contract to provide construction management and inspection services increasing the total contract from $2,123,000 to $2,597,000.

B. Accept the first through third amendments for $197,692 and approve the fourth amendment for $80,000 to Black & Veatch’s design contract to provide continued construction support design services, increasing the total contract amount from $2,175,692 to $2,255,692.

C. Accept and approve Change Order 11 for $29,247 to Archer Western's construction contract.

Mr. Chamberlain gave a presentation, which included reasons for the budget increase and the recommended actions.

Vice Chair Johnson moved, Committee member Lewanski seconded and the motion carried unanimously to approve staff’s recommendations A, B and C.

4. Continue discussion and consideration to increase the budget and award a construction contract for the Lake Hodges Pump Station and increase the budget for the Olivenhain-Hodges Pumped Storage project.

Staff recommendation: Staff will present recommendation at the Board meeting.

Ms. Rodgers presented on the item. The presentation included the project bid results, information that had been deferred from the February 9, 2006 Special Engineering and Operations Committee meeting concerning the award of this construction contract and staff’s recommendation. Ms. Rodgers introduced Mr. Foote, Area Manager, Archer Western. Mr. Foote discussed that after working with Water Authority staff, consultants and their subcontractors, they had come up with nine potential savings ideas that ranged from $2 to $5 million. The credits that would be offered to the Water Authority would be for the full value of the work rather than exercising the value- engineering clause of the contract.

Vice Chair Ferguson moved, Committee member Lewinger seconded and the motion carried unanimously to approve staff’s recommendation and award a construction contract to Archer Western Contractors in the amount of 55.6 million for Lake Hodges Pump Station and authorize additional funding, in the amount of $41.1 million, to complete Lake Hodges Pump station and Pumped Storage Project.

2. Regional Treatment.

2-A Principles of Understanding for City of San Diego Miramar Water Treatment Plant Pump Back Agreement.

Staff recommendation: Authorize the proposed Principles of Understanding for City of San Diego Miramar Water Treatment Plant Pump Back Agreement, and direct staff to begin negotiations on the final agreement with the City.

Mr. Pyle gave a presentation which reviewed the proposed Principals of Understanding for Miramar Pump Back, the historic relationship with the City of San Diego relating to pump back and outlined key elements of the agreement.

Vice Chair Johnson moved, Committee member Tu seconded and the motion carried unanimously to approve staff’s recommendation.

2-B East County Regional Treated Water Improvements Program implementation agreements.

Staff recommendation:

A. Approve and authorize the General Manager to sign two agreements with Helix titled:

1. Agreement between the San Diego County Water Authority and Helix Water District regarding implementation of the East County Regional Treated Water Improvement Program.

2. Third Amendment to Capacity Agreement between San Diego County Water Authority and Helix Water District.

B. Approve and authorize the General Manager to sign two agreements with Padre Dam titled:

1. Agreement between the San Diego County Water Authority and Padre Dam Municipal Water District regarding implementation of the East County Treated Water Improvement Program. (Lakeside detached)

2. Agreement between the San Diego County Water Authority and Padre Dam Municipal Water District regarding implementation of the East County Regional Water Treatment Improvement Program. (Lakeside not detached)

C. Approve and authorize the General Manager to sign an agreement with Lakeside titled Agreement between the San Diego County Water Authority and Lakeside Water District and Riverview Water District regarding implementation of the East County Regional Treated Water Improvement Program.

D. Approve and authorize the General Manager to sign an agreement with Otay titled Agreement between the San Diego County Water Authority and Otay Water District regarding implementation of the East County Regional Treated Water Improvement Program.

E. Authorize an increase of $5.1 million to a total of $31.9 million for the East County Treated Water Improvement Program project budget, compensated by decreases in the “Convert Pipeline 3 to Untreated Water from the Crossover to Miramar”and “Second Crossover Pipeline” projects.

Mr. Garvey presented on the item, briefly reviewed the agreements and provided background.

Committee member Croucher moved, Vice Chair Johnson seconded and the motion carried unanimously to authorize staff recommendations A, B, C, D and E.

Mr. Hentschke called the Committee into closed session at 2:20 p.m.

5. CLOSED SESSION:
Conference with Real Property Negotiator
Government Code §54956.8
Property: La Mesa Sweetwater Extension Pipeline APN 377-080-15
& 16Agency Negotiators: Daniel S. Hentschke, William J. Rose, William Busch, Tad Brierton
Negotiating Parties: Ramon & Rosario Minez, Husband and Wife
Under Negotiation: Price and terms of acquisition

The Committee reconvened briefly at 2: 32 p.m. and Mr. Hentschke noted there was no reportable action. Mr. Hentschke brought the Imported Water Committee into closed session at 2:35 p.m. The Engineering and Operations Committee reconvened at 3:08 p.m.

III. INFORMATION

1. Advertisement for Bids – Cathodic Protection of Escondido Pump Station Inlet Pipeline.

2. Advertisment for Bids – Cathodic Protection of Sweetwater Bypass Pipeline.

IV. ADJOURNMENT

There being no further business to come before the Engineering and Operations Committee, Chair Knutson adjourned the meeting at 3:10 P.M.

1. CALL TO ORDER. Chairman Bond called the Formal Board of Directors’meeting to order at 3:20 p.m.

2. SALUTE TO THE FLAG. Secretary Lewis led the salute to the flag.

3. ROLL CALL, DETERMINATION OF QUORUM. Secretary Lewis called roll. Directors present were Bond, Bowersox, Brammell, Croucher, Dailey, Ferguson, Haddad, Johnson, Knutson, Lewanski, Lewinger, Lewis, Linden, Martin, Morrison, Parker, Quist, Rhinerson, Rogers, Saunders, Steiner, Sundram, Thompson, Tu, Watton and Williams. Directors absent were Broomell, Dixon*, Irvin, Loveland, Muir, Pocklington*, Price and Representative Slater-Price.

3-A Report on proxies received. Director Morrison was the proxy for Director Pocklington. Director Lewanski was the proxy for Director Dixon. Director Croucher asked if Director Muir had assigned his proxy. Clerk of the Board Lore responded that Director Muir had not.

4. ADDITIONS TO AGENDA. There were no additions to the agenda.

5. APPROVAL OF MINUTES. Director Tu moved, Director Ferguson seconded and the motion carried for a total of 90.13% of the vote, to approve the Minutes of the Special Board of Directors’ meeting of January 12, 2006, and the Formal Board of Directors’ meeting of January 26, 2006.

6. OPPORTUNITY FOR MEMBERS OF THE PUBLIC WHO WISH TO

ADDRESS THE BOARD ON MATTERS WITHIN THE BOARD’S

JURISDICTION. There were no public speakers.

7. PRESENTATIONS & PUBLIC HEARINGS

7-A Retirement of Director. The Board adopted Resolution No. 2006-04

honoring Nick Inzunza upon his retirement of the Board of Directors.

7-B Recognition of Employee of the Second Quarter. Nora Stark was honored as Employee of the Second Quarter.

7-C Recognition of Betty Ferguson. Chair Bond announced that Betty Ferguson had stepped down as the Chair of Region 10 at Association of California Water Agencies but remained a member of the Board for ACWA.

8. REPORTS BY CHAIRS

Chairman’s Report – Chairman Bond

Chairman Bond requested Secretary Lewis provide an update on the

evaluation process of the General Manager and General Counsel. He announced 50% of the evaluation forms had been submitted and they would need to be submitted within the next two weeks to be tabulated prior to the next Board meeting. Chair Bond announced he had met with the Vallecitos Board. He announced the Vallecitos Board had requested a donation of $6,000 for the Clean Water Summit. The Officers met and decided the Water Authority would donate $3,000 to the Clean Water Summit and the City of San Diego would contribute $3,000. He stated the Officers and Chairs had met and decided to form an Ad Hoc Committee that would look into the bidding climate. Members of this new Ad Hoc Committee were Bill Knutson as Chair, and Directors Bowersox, Dailey, Ferguson, Johnson, Lewanski and Tu. He provided a summary of his recent meetings.

Director Dixon entered the room at 3:30 p.m.

Administrative and Finance Committee. Director Dixon announced all items had passed. He stated the new per diem expense form was in the pick up packet.

Water Planning Committee. Director Haddad announced everything was passed in committee.

Legislation, Conservation and Outreach Committee. Director Steiner announced all items had passed.

Imported Water Committee. Director Saunders reviewed the reports of the committee. Mr. Hentschke announced Item 3-A had no action. Item 3-B, the committee took action to give instructions to the negotiators and that action is not reportable. Item 3-C, the potential litigation, the committee recommended unanimously the approval of an interim settlement agreement with Imperial Irrigation District.

Engineering and Operations Committee. Director Knutson announced all items were passed in committee.

9. CONSENT CALENDAR

Director Ferguson moved, Director Knutson seconded, and the motion carried at 90.13% of the vote, to approve the amended Consent Calendar. Abstentions and those voting no were listed under the item.

10. ACTION / DISCUSSION

There were no items.

11. CLOSED SESSIONS:

11-A CLOSED SESSION:

Conference with Real Property Negotiator
Government Code §54956.8
Property: Property interests for a regional desalination project at the Encina Power Plant site in the City of Carlsbad
Agency Negotiators: Maureen Stapleton, Daniel Hentschke, Ken Weinberg
Negotiating Parties: Cabrillo Power, LLC; Poseidon Resources, Inc.
Under Negotiations: Price and terms of acquisition

11-B CLOSED SESSION
Conference with Real Property Negotiator
Government Code Section: 54956.8
Property: Riverside County Parcel APN 733-040-003 (247.97 acres)
Agency Negotiators: Daniel S. Hentschke, William J. Rose, Ken Steele, William Busch, Bill Tippets
Negotiating Parties: Dov Grajcer

11-C CLOSED SESSION:
Conference with Real Property Negotiator
Government Code §54956.8
Property: Riverside County Parcels
APN 733-280-035 (640 acres), 733-150-054 (240 acres)
Agency Negotiators: Daniel S. Hentschke, William J. Rose, Ken Steele, William Busch, Bill Tippets
Negotiating Parties: State Lands Commission
Under Negotiation: Price and terms of option/acquisition

11-D CLOSED SESSION:
Conference with Real Property Negotiator
Government Code §54956.8
Property: La Mesa Sweetwater Extension Pipeline APN 377-080-15 & 16
Agency Negotiators: Daniel S. Hentschke, William J. Rose, William Busch, Tad Brierton
Negotiating Parties: Ramon & Rosario Minez, Husband and Wife
Under Negotiation: Price and terms of acquisition

11-E CLOSED SESSION:
Conference with Legal Counsel – Potential Litigation
Government Code §54956.9(b) – One case.

12. SPECIAL REPORTS

12-A GENERAL MANAGER’S REPORT – Ms. Stapleton reminded the Board of the upcoming Coachella Canal Lining Tour and stated there would be a Special Board meeting on April 6, 2006 regarding the Drought Management Plan.

12-B GENERAL COUNSEL’S REPORT – Mr. Hentschke announced there was a first amended complaint filed by all plaintiffs regarding the All American Canal Lining. The first amended complaint attempted to restate all of the counts that were previously dismissed by the judge including some additional allegations to get around the judge’s ruling. He explained this would reintroduce a flurry of motions to dismiss and other motions that had previously been declared by the court to be moot.

12-C ACWA-JPIA REPORT – Director Knutson. No report was given.

12-D SANDAG REPORT – Director Dailey reviewed the recent three-day SANDAG retreat that she attended.

SANDAG Subcommittee: Borders/Regional Planning Committee - Director Williams announced the committee had met and discussed the status of the Water Authority on the Energy Working Group. He announced a staff member had been assigned to the group.

13. OTHER COMMUNICATIONS

14. ADJOURNMENT

There being no further business to come before the Board, Chairman Bond adjourned the meeting at 3:50 p.m.

__________________________________
James H. Bond
Chairman

_______________________________
Claude A. Lewis
Secretary

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Doria F. Lore, Clerk of the Board

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