MINUTES OF THE FORMAL BOARD OF DIRECTORS' MEETING

November 30, 2006

ADMINISTRATIVE AND FINANCE COMMITTEE
CALL TO ORDER / ROLL CALL
Chair Dixon called the Administrative and Finance Committee meeting to order at 9:01 a.m. Committee members present were Chair Dixon, Vice Chairs Dailey and Tu, Directors Bowersox, Brammell, Johnson, Muir*, Parker, Price, Steiner, Watton, and Williams. Committee members absent were Director Knutson and Representative Slater-Price. Also present were Directors Arant, Bond, Ferguson, Hogan, Lewinger, Martin, Petty, Pocklington and Wornham. At that 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 General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Finance/Treasurer Brust, Director of Administrative Services Young, and Director of Water Resources Weinberg. Also present were Rich Morales, Senior Vice President, Wedbush Morgan Securities and Rich Kikuchi, Partner, Lance, Soll & Lungard, LLP.

* Director Muir arrived at 9:12 a.m.

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 Special Administrative and Finance Committee meeting was held on November 8th regarding the audit report.

I. CONSENT CALENDAR
1. Treasurer’s report.
Staff recommendation: Note and file monthly Treasurer’s report.

2. Adopt the Vote Entitlement Resolution for Calendar Year 2007.
Staff recommendation: Adopt Resolution No. 2006-____ establishing vote and representative entitlements of each member agency to be effective January 1, 2007.

3. Establish 2007 Board meeting dates.
Staff recommendation: Combine the November and December Board meeting dates to December 6, 2007, and approve the 2007 Board meeting dates calendar.

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

II. ACTION/DISCUSSION
1. Financial Management.

1-A Presentation on Commercial paper issuance/credit rating agency update.

1-B Accept Comprehensive Annual Financial Report for the fiscal year ended June 30, 2006.
Staff recommendation: Receive and file the Comprehensive Annual Financial Report for fiscal year ended June 30, 2006.

1-C Adopt Annual Statement of Investment Policy, as amended, and continue to delegate authority to the Treasurer to invest Water Authority funds for
calendar year 2007.
Staff recommendation: Adopt the Annual Statement of Investment Policy, as amended, and continue to delegate authority to the Treasurer to invest
Water Authority funds for calendar year 2007.

Ms. Brust introduced Rich Morales of Wedbush Morgan Securities and Rich Kikuchi of Lance, Soll and Lunghard. Rich Morales presented the financial disclosure (2006 Commercial Paper Issuance and Credit Ratings), Rich Kikuchi presented the financial results and internal controls (results of the audit / FY 2006 Comprehensive Annual Financial Report) and Karen Brust presented the financial policy updates (Investment Policy amendment and portfolio projections review). Following the presentation, there was discussion and questions by the Board.

Director Brammell asked if he could get a copy of the payment schedule showing how the $350 million in commercial paper will be paid back. Ms. Brust responded yes, a payment schedule will be provided.

Director Muir moved, Director Price seconded, and the motion carried unanimously to receive and file the Comprehensive Annual Financial Report for fiscal year ended June 30, 2006, and adopt the Annual Statement of Investment Policy, as amended, and continue to delegate authority to the Treasurer to invest Water Authority funds for calendar year 2007.

III. INFORMATION
The following items were received and filed:

1. Annual report on fund balances for fiscal year 2005-2006 and the 45-day Operating Fund policy.

2. Interim adjustment of calendar year 2007 System Capacity Charge and deferral of recalculation of the Annexation Fee.

3. Controller’s report on monthly financial statements.

4. Board Calendar.

IV. ADJOURNMENT
There being no further business to come before the Administrative and Finance Committee, Chair Dixon adjourned the meeting at 9:48 a.m.

IMPORTED WATER COMMITTEE
CALL TO ORDER / ROLL CALL
Chair Muir called the Imported Water Committee to order at 9:56 a.m. Committee members present were Directors Arant, Bond, Bowersox, Lewis, Linden, Martin, Parker, Pocklington, Quist, Saunders, and Wornham. Representative Slater-Price was absent. Also present were Directors Barrett, Brammell, Dailey, Dixon, Ferguson, Hogan, Johnson, Lewinger, Morrison, Petty, Price, Tu, 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, Assistant General Manager Cushman, Director of Imported Water Hess, Inter-Agency 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
Chair Muir thanked the Vice Chairs and Committee members for their participation during his two-year term as Chair. He reviewed the Committee’s accomplishments from the past two years.

4-A Directors’ comments.
There were no comments from Directors.

I. CONSENT CALENDAR
1. Professional services contract with RW Beck for imported water power analysis.
Staff recommendation: Award a professional services contract to RW Beck for a not-to-exceed amount of $60,000 to determine the amount and cost of electric power needed by Metropolitan Water District (MWD) to import and deliver water from the Colorado River Aqueduct (CRA) and State Water Project (SWP).

Director Pocklington made a motion, Director Wornham seconded, and the motion passed unanimously to approve the staff recommendation.

II. ACTION/DISCUSSION
1. Professional Services Contract amendment for staff support to develop local and out-of-region groundwater conjunctive use programs.
Staff recommendation: Authorize the General Manager to amend a professional services contract with Malcolm Pirnie, Inc., by $144,140 for a total amount not-to-exceed $193,154.

Ms. Chen gave a brief presentation, reviewing the reasons for the contract amendment. Director Wornham made a motion, Director Arant seconded, and the motion passed unanimously to approve the staff recommendation.

2. MWD Issues and Activities update.
2-A MWD Delegates report.

The delegates discussed newly-elected MWD Chairman Tim Brick and GASB 45 requirements that deal with disclosures of MWD’s financial obligations for retired employee health benefit costs. On other matters, Director Lewis suggested that the Water Authority coordinate a meeting between the mayors of San Diego and Los Angeles, along with staff and the delegates from those two agencies to discuss shared objectives.

3. Colorado River.
3-A Colorado River report.

Chairman Bond discussed Nevada’s return flow credits on the Colorado River and the status of the intentionally created surplus storage program.

4. Quantification Settlement Agreement.
4-A QSA Ad-Hoc Committee report.

Director Watton commented on the recent Coachella Canal ribbon cutting ceremony, Imperial Valley election results, and the outreach plan for the Imperial Valley.

The Committee went into closed session at 11:25 a.m.

4-B CLOSED SESSION:
Conference with Legal Counsel – Existing Litigation
Government Code §54956.9(a)
i. IID Water Transfer Contract Arbitration
ii. CDEM, et al. v. United States et al.; US Court of Appeals
Docket No. 06-16345

iii. Protect Our Water and Environmental Rights, Jimmie Abatti, et al. v. IID, et al.; Case No. ICSC No. ECU03248
iv. Coachella Canal Lining Arbitration

The Committee reconvened at 11:20 p.m. General Counsel Hentschke stated that the Committee discussed the closed session items, and that there were no reportable actions.

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, Chair Muir adjourned the meeting at 11:21 p.m.

ENGINEERING AND OPERATIONS COMMITTEE
CALL TO ORDER / ROLL CALL
Vice Chair Ferguson called the Engineering and Operations Committee to order at 11:25 a.m. Committee members present were Vice Chair Johnson, Directors Arant, Barrett, Brammell, Lewinger, Petty, Thompson, and Tu. Committee members absent were Chair Knutson and Directors Croucher, Lewanski, Morrison, and Rogers. Other Board members present were Directors Bond, Bowersox, Dailey, Dixon, Hogan, Lewis, Martin, Muir, Parker, Pocklington, Price, Quist, Steiner, Watton, Williams, and Wornham. At that 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 General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Engineering Economides, Director of O&M Eaton, Director of Right of Way Rose, and Assistant Director of Engineering Stift.

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 Ferguson presented Chair Knutson's written comments for the Final Report on Engineering and Operations Committee Goals and Objectives for 2005 and 2006.

Directors' comments and updates:

Construction Costs Ad Hoc Committee final report:
Vice Chair Ferguson introduced the final report of the Construction Costs Ad Hoc Committee by summarizing the history of the Committee. She called on Mr. Economides, who presented details about the Committee and staff collaboration to identify challenges to contain construction costs, on solutions explored, and accomplishments achieved.

Skinner Plant shutdown:
Vice Chair Ferguson asked Mr. Eaton to update the E&O Committee on the status of the 11-day total treated water shutdown at the Skinner plant. Mr. Eaton reported specifics about repairs taking place around the system, that all repairs were on or ahead of schedule, and member agencies had reported sufficient capacity to get through the shutdown period.

I. CONSENT CALENDAR
1. Sale of Aqueduct Right of Way to Caltrans for State Route 125.
Staff recommendation: Accept Caltrans' offer to purchase a portion of the fee-owned Second Aqueduct for Caltrans' State Route 125 for $73,905 subject to a reserved exclusive easement for Water Authority purposes.

2. Quitclaim Water Authority easement on Assessor's Parcel Number
127-290-12-00.
Staff recommendation: Quitclaim a portion of San Diego County Water Authority easement on APN 127-290-12-00, located at 32050 Aqueduct Road, Bonsall, California, to property owners Rudolfo and Virginia Correa.

3. Agreement with Otay Water District for design, construction, operation and maintenance of Otay 14 Flow Control Facility modifications.
Staff recommendation: Authorize the General Manager to sign an agreement with Otay Water District for the Otay 14 Flow Control Facility modifications.

4. Grant of easement to San Diego Gas & Electric (SDG&E) for power services to the Rancho Peñasquitos Pressure Control/ Hydroelectric facility.
Staff recommendation: Authorize the General Manager to execute a Grant of Easement to SDG&E.

5. Adopt Ordinance amending Chapter 2.04, Section 2.040.050(e) of the Administrative Code relating to General Manager authority and duties during emergencies.
Staff recommendation: Adopt Ordinance No. 2006-___, an Ordinance of the San Diego County Water Authority Board of Directors amending Chapter 2.04, Section 2.04.050(e) of the Administrative Code relating to Authority and Duties of the General Manager during emergencies.

Director Lewinger moved, Vice Chair Johnson seconded and the motion to accept the Consent Calendar passed unanimously.

II. ACTION/DISCUSSION
1. San Vicente Pumping Facilities project.
1-A Award a construction contract for the San Vicente Pumping Facilities to Kiewit Pacific Co.
Staff Recommendation: Award a construction contract to Kiewit Pacific Co., in the amount of $65,237,000 for the San Vicente Pumping Facilities project; and Increase the San Vicente Pumping Facilities project budget by $27,150,000; and Move the San Vicente Surge Control Facility budget of $30,102,000 and existing expenditures from the San Vicente Pipeline Aqueduct and Interconnect project to the San Vicente Pumping Facilities project; and Transfer $1,964,000 from the ESP San Vicente Dam Raise project, for the dam raise access road to be built adjacent to the surge tank, to the San Vicente Pumping Facilities project.

1-B Amend two professional services contracts for the San Vicente Pumping Facilities project.
Staff recommendation: Amend the following professional services contracts for the San Vicente Pumping Facilities project:

a. Accept amendments one and two in the amount of $37,000, and approve amendment three to Parsons Brinckerhoff, Quade & Douglas, Inc., in the amount of $952,000, to extend the duration of construction management services and provide additional inspection and testing services, increasing the total contract amount from $7,200,000 to $8,189,000.

b. Accept amendments one through four in the amount of $108,350, and approve amendment five to Black & Veatch Corporation, in the amount of $862,000, to provide additional design and construction support services, and computer control system programming, increasing the total contract amount from $6,000,000 to $6,970,350.

Engineer Kavanagh, Project Manager for the San Vicente Pumping Facilities Project, presented information about the pumping facilities site and budget requirements. She then related information about the proposed construction contract award to Kiewit Pacific Co., and the need for amending the existing contracts with Parsons Brinckerhoff, Quade & Douglas, Inc., and Black & Veatch Corporation.

Vice Chair Johnson moved, Director Arant seconded, and the motion passed unanimously to accept the staff recommendations for the San Vicente Pumping Facilities Project.

The Committee went into Closed Session at 12:10 p.m.

2. 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

3. CLOSED SESSION:
Conference with Real Property Negotiator
Government Code §54956.8
Property: La Mesa Sweetwater Extension Pipeline
APN 377-080-17
Agency Negotiators: Daniel S. Hentschke, William J. Rose, William Busch, Tad Brierton
Negotiating Parties: Lawrence E. Heaton, Surviving Trustee of the Lawrence E. and Hazel L. Heaton Living Trust, dated November 27, 1999.
Under Negotiation: Price and terms of acquisition

4. CLOSED SESSION:
Conference with Legal Counsel – Existing Litigation
Government Code §54956.9(a)
Name of Case: San Diego County Water Authority v. Luke Mardesich, et al.
SDSC Case No. GIN 042154-1

The Committee meeting was reconvened at 12:50 p.m. Mr. Hentschke stated that information from the closed session would be included at the afternoon's Formal Board meeting.

III. INFORMATION
There were no Information items.

IV. ADJOURNMENT
There being no further business to come before the Committee, Vice Chair Ferguson adjourned the meeting at 12:55 p.m.

WATER PLANNING COMMITTEE MEETING
CALL TO ORDER / ROLL CALL
Chair Saunders called meeting to order at 1:35 p.m. Committee members present were Vice Chairs Lewinger and Watton, Directors Barrett, Dixon, Hogan, Linden, Martin, Petty, Quist, Pocklington, and county Representative Slater-Price. Committee member absent was Director Rogers. Also present were Directors Arant, Bond, Bowersox, Brammell, Croucher, Dailey, Ferguson, Lewis, Morrison, Muir, Parker, Price, Steiner, Thompson, Williams, and Wornham. At that 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 General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Water Resources Weinberg, Water Resources Managers Purcell and Roy, Principal Water Resources Specialist Putnam and Friehauf, and Senior Water Resource Specialist Lopez.

ADDITIONS TO AGENDA
There were no additions to the agenda.

PUBLIC COMMENT
Chair Saunders requested members of the public that gave speaker slips to staff be called to speak after that item had been presented to the Board.

CHAIR’S REPORT
Chair Saunders made a brief announcement regarding the Water Authority’s public involvement process for the Carryover Storage EIR/EIS. The Water Authority would host a Community Forum on Monday, December 11, 2006, at 6 p.m. at the Lakeside Community Center.

The Community Forum would discuss the Carryover Storage and San Vicente Dam Raise project. Over 16,000 postcards were mailed to addresses in the Lakeside Community inviting them to attend that event. The forum would be an opportunity for community members to learn more about the project and to provide their input on the environmental study. Comments received would be considered in the development of the EIR/EIS on the project. If you have any questions about the forum please ask staff for more information

Chair Saunders stated that this was the final meeting of the committee under his chairmanship and he wanted to thank all the members of the Water Planning Committee for their hard work and their help in achieving so many of the goals and objectives that were detailed in the board packet. The committee had many important and difficult items on its agenda and the committee did a remarkable job in moving the items forward. He also wanted to express his personal appreciation to the Committee Vice Chairs, Director Lewinger and Director Watton, for their leadership and insight on the many complex issues the committee had dealt with and for filling in when he could not attend. The vice chairs made the transition to Committee Chair those last six months a smooth process and he greatly valued their input.

He also stated that Ben Haddad, as the Chair of the Committee for the first year and half also appreciated the efforts of all the committee members and the Vice Chairs. The committee wanted to thank Ben for his leadership as Chairman and for tackling some of the most difficult items on the goals and objective during his chairmanship.

4-A Directors’ comments.
There were no director’s comments.

4-B Final report on Water Planning Committee goals and objectives for 2005 and 2006.

Chair Saunders reviewed highlights of the significant accomplishments of the Committee over the last 2 years.

• Provided guidance and input to staff and approved the 2005 Urban Water Management Plan
• Gave policy direction and approved the first Drought Management Plan and shortage allocation plan in the Metropolitan Water District service area in the past 10 years
• Developed and adopted new Water Authority Board policies for service area annexations
• The Committee worked through the very difficult issues around a regional desalination project at the Encina Power Station and provided the Board with the appropriate recommendations
• Adopted a Desalination Action Plan for the future
• The Committee approved revisions to the Reclaimed Water Development Fund to support member agency efforts at water recycling
• Approved the Twin Oaks Valley Water Treatment Plant EIR and the Mission Trails Flow Regulatory Structure 2 EIR

The Committee had a lot of important work in front of it that affected water reliability for the region and the committee completed it all. Congratulations to all of the Board members who served on the Committee over the past 2 years on a job well done.

I. CONSENT CALENDAR
1. Principles of Understanding for San Diego 17 Pump Station and Flow Control Facility Agreement.
Staff Recommendation: Authorize the General Manager to sign the proposed Principles of Understanding for San Diego 17 Pump Station and Flow Control Facility and direct staff to begin negotiations on the final agreement with the city of San Diego and Otay Water District.

Director Pocklington moved, Director Barrett seconded, and the motion passed unanimously.

II. ACTION/DISCUSSION
1. Adopt Resolution certifying the Final Supplemental Environmental Impact Report for the Emergency Storage Project - Lake Hodges Pump Station; adopting Environmental Findings of Fact and Statement of Overriding Considerations; and a mitigation monitoring and reporting program; and authorizing filing of a Notice of Determination.
Staff Recommendation: Adopt Resolution No. 2006-____ that certifies that the Final SEIR had been completed in compliance with the California Environmental Quality Act (CEQA) and State CEQA Guidelines, and reflects the independent judgment of the Board; and adopts CEQA Findings of Fact and Statement of Overriding Considerations, and a minor modification to the Mitigation Monitoring Program; and authorizes the filing of a Notice of Determination.

Ms. Putnam presented to the Board the Final Supplemental Environmental Impact Report for the Emergency Storage Project - Lake Hodges Pump Station. She included in her report the project description and coordination with the JPA, comments received from individuals, agencies, and interested groups, responses to key issues and required actions.

Members of the public that addressed the Board were Dave McCollom, Encinitas, CA; Phil Pryde, San Diego; Dick Bobertz, Escondido; Carol Carr, San Diego; Max Kiltz, san Diego; Tom Golick, Solano Beach; and John Degenfelder, Ramona.

Director Barrett made a motion to continue the item until the next Board meeting to allow the JPA and Water Authority staff to meet to identify trail closure mitigation alternatives. If necessary, staff was directed to utilize a third party to facilitate these discussions. Director Quist seconded and the motion passed with one no vote by Director Lewinger.

2. Local Supplies:
2-A Revisions to the Reclaimed Water Development Fund Program and Recommendations from the Member Agency Local Projects Ad Hoc Committee.
Staff recommendation: Adopt revisions to the Reclaimed Water Development Fund (RWDF) Program as follows:

1. Change the Program name to the Local Water Supply Development Program (LWSDP);
2. Increase the maximum incentive level for eligible projects from the current $147/AF of recycled water beneficially reused to $200/AF and make the necessary budgetary modifications;
3. Existing projects demonstrating a financial need for Water Authority incentives for a period of more than five years would be eligible to increase their incentive level to $200/AF;
4. Amend existing eligible RWDF project agreements to reflect the maximum $200/AF incentive increase and revise (if warranted) the contractual allowable project yield totals after consultation with agency staff as follows:

a. After initial consultation between the Water Authority and the contracting agency, determine if the maximum yield allowed under the existing contract was consistent with 2030 UWMP projections and adjust accordingly;
b. After five years from the date of the execution of the amendment, require a consultation between the Water Authority and the contracting agency to determine if the project had reached its maximum contract yield or its 2010 UWMP goal, or what specific plans have been made to attain that goal. Adjust contract yield accordingly;

5. Require any new recycled water project applying for Water Authority incentives to be subject to the guidelines of the Local Water Supply Development Program; and
6. Expand eligibility for RWDF incentives to projects engaged in brackish groundwater recovery. Direct staff to work with the interested member agencies on developing terms for eligibility, definition of financial need, and other program guidelines specific to brackish groundwater recovery projects.

Ms. Roy provided background information for the proposed modification to the reclaimed water development fund program. She acknowledged all the agencies represented by the Local Projects Ad Hoc committee members. Ms Roy reviewed the September 2005 interim action, proposed modifications to the RWDF program and additional steps to be taken.

Director Pocklington moved, Director Hogan seconded and the motion passed unanimously to approve the staff recommendation.

2-B Final report on the Regional Recycled Water Study – Phase II

The final report on the Regional Recycled Water Study – Phase II was received and filed.

3. Approve Amendment to Professional Services Contract with RBF Consulting, for the San Onofre Desalination Feasibility Study.
Staff recommendation: Authorize execution of an amendment to the contract with RBF Consulting for a revised scope of work for the San Onofre/Camp Pendleton Desalination Feasibility Study.

Mr. Lopez presented to the Board the revised scope of work for San Onofre desalination feasibility study. He included the current scope, the work completed, and the proposed study scope. Mr. Lopez then reviewed the pending next steps.

Director Quist moved, Director Lewinger seconded and the motion passed unanimously to approve the staff recommendation.

III. INFORMATION

1. Status Report on terms and conditions for Lakeside Water District to become a separate unit of the Water Authority.

Chair Saunders stated that the General Manager had complied with the terms and conditions established by the board in August 2006, to become a separate member agency of the Water Authority. LAFCO had recorded the reorganization complete, which approves the detachment of Lakeside Water District from Padre Dam and formation of a separate unit. Lakeside representative would be sworn in next month and be present at the January 2007 Board meeting.

2. Water Resources Report.

The Water Resources Report was received and filed.

IV. ADJOURNMENT
There being no further business to come before the Water Resources Committee, Chair Saunders adjourned the meeting at 3:00 p.m.

LEGISLATION, CONSERVATION AND OUTREACH COMMITTEE
CALL TO ORDER/ROLL CALL
Chair Steiner called the Legislation, Conservation and Outreach Committee to order at 3:04 p.m. Committee members present were Chair Steiner, Vice Chairs Croucher and Williams, and Directors Bond, Dailey, Ferguson, Hogan, Lewis, Morrison, Price, Thompson, and Wornham. Committee member absent was Director Lewanski. Also present were Directors Arant, Bowersox, Brammell, Dixon, Johnson, Lewinger, Linden, Martin, Muir, Parker, Petty, Pocklington, Quist, Tu, and Watton. At that 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 General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, and Director of Public Affairs Jacoby.

ADDITIONS TO THE 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 Steiner thanked the Public Affairs staff for their assistance and thanked the committee vice chairs and committee members for their work over the past two years. Chair Steiner listed the accomplishments made by the Legislative, Conservation and Outreach Committee during this period.

General Manager meeting guidelines. The Board determined that meetings commonly known as Member Agency Managers’ monthly meetings and General Manager work group meetings are not meetings, events or occurrences, for which Water Authority Directors are entitled to payment of per diem or expense reimbursement under Chapter 2.05 of the Administrative Code. Director Croucher moved, Director Williams seconded and the motion passed. Director Lewis opposed. Director Dailey requested the Board be notified of the location and agenda for the Member Agency Managers’ meeting. General Manager Stapleton stated that the Board would be notified via email.

DIRECTOR’S COMMENTS
There were no director’s comments.

I. CONSENT CALENDAR

1. Authorize the submittal of the biennial report on the implementation of the Best Management Practices to the California Urban Water Conservation Council.
Staff recommendation: Authorize the submittal of the biennial report on the implementation of the Best Management Practices to the California Urban Water Conservation Council.

2. Approve a water efficient landscape refurbishment project for Kearny Mesa headquarters building.
Staff recommendation: Approve the allocation of conservation funds in an amount not-to-exceed $150,000 to refurbish the existing landscaping of the Kearny Mesa headquarters building to demonstrate and promote outdoor water conservation.

Director Bond moved, Director Croucher seconded, and the motion carried unanimously to approve the consent calendar.

II. ACTION/DISCUSSION
1. Legislative issues.
1-A Report by Carpi and Clay.

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

1-B Adopt proposed 2007 Legislative Policy Guidelines
Staff recommendation: Adopt proposed 2007 Legislative Policy Guidelines.

Director Wornham moved, Director Croucher seconded, and motion carried unanimously to adopt the 2007 Legislative Policy Guidelines.

1-C Authorize 2007 Water Authority sponsor legislation.
Staff recommendation: Sponsor legislation to clarify references in water meter statutes regarding volumetric pricing and amend the Urban Water Management Planning Act to extend the planning horizon from the current 20-year period to 25 years.

Director Croucher moved, Director Dailey seconded, and motion carried unanimously to sponsor legislation to clarify references in water meter statutes regarding volumetric pricing and amend the Urban Water Management Planning Act to extend the planning horizon from the current 20-year period to 25 years.

2. Water Conservation Strategic Vision.
2-A Board endorsement of the Water Conservation Summit White Paper and staff preparation of a Strategic Plan for Conservation.
Staff recommendation:
a. Endorse the White Paper as a basis for a strategic plan for water conservation; and
b. Support Water Authority as a lead agency for implementation of White Paper recommendations; and
c. Direct staff to return to the Board within 90 days for approval of a comprehensive strategic plan for water conservation.

Helix Water District General Manager Weston provided an overview of the strategic plan process for water conservation, including conservation programs, partnerships, staffing and budget, and staff recommendations.

Director Wornham moved, Director Croucher seconded, to endorse the White Paper as a basis for a strategic plan for water conservation; and support the Water Authority as a lead agency for implementation of White Paper recommendations; and direct staff to return to the Board within 90 days for approval of a comprehensive strategic plan for water conservation to include hiring and funding of a project manager as proposed by the White Paper. The motion carried unanimously.

III. INFORMATION
The following items were received and filed:
1. SCOOP quarterly report
2. Water Conservation Garden report
3. Outreach activities for the month of October

IV. ADJOURNMENT
There being no further business to come before the Legislation, Conservation and Outreach Committee, Chair Steiner adjourned the meeting at 3:29 p.m.

FORMAL BOARD OF DIRECTORS’ MEETING OF NOVEMBER 30, 2006

1. CALL TO ORDER. Chair Bond called the Formal Board of Directors’ meeting to order at 3:40 p.m.

2. SALUTE TO THE FLAG. Vice Chair Loveland led the salute to the flag.

3. ROLL CALL, DETERMINATION OF QUORUM.
Secretary Lewis called roll. Directors present were Arant, Barrett, Bond, Bowersox, Brammell, Croucher, Dailey, Dixon, Ferguson, Hogan, Lewinger, Lewis, Linden, Martin, Morrison, Muir, Parker, Petty, Pocklington, Price, Quist, Saunders, Steiner, Thompson, Tu, Watton, Williams, Wornham. Directors absent were Johnson, Knutson, Lewanski (p), Rogers and Representative Slater-Price.

3-A Report on proxies received.
Director Linden had the proxy vote for Director Lewanski.

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

5. APPROVAL OF MINUTES. Director Croucher moved, Director Steiner seconded and the motion carried for a total of 99.49% of the vote, to approve the minutes of the SCOOP Committee meeting of October 12, 2006, the Formal Board of Directors’ meeting of October 26, 2006, and the minutes from the Board of Directors retreat November 2, 2006.

6. OPPORTUNITY FOR MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THE BOARD ON MATTERS WITHIN THE BOARD’S
JURISDICTION. There were no members of the public that spoke.

7. PRESENTATIONS & PUBLIC HEARINGS
7-A Presentation to outgoing Chairman.
7-B Director service award to Greg Quist.
7-C Recognition of Maria Silva, employee of the 1st quarter.
7-D Presentation by Timothy F. Brick, Metropolitan Water District.

Directors Lewis and Steiner made a presentation to Chair Bond. Chair Bond stated it was his pleasure, privilege, and honor to work with the Board. Director Quist was presented with his service award. Maria Silva was recognized as employee of the 1st quarter. Timothy F. Brick from Metropolitan Water District spoke to the Board and commented that the Water Authority is an important force at Metropolitan Water District and many times has provided illumination on tough issues.

8-B MWD Delegate appointment. Confirmation of appointment of representative to the Metropolitan Water District Board of Directors.

The Board adopted Resolution No. 2006-37 approving the appointment of James Barrett as a representative of the San Diego County Water Authority on the Board of Directors of the Metropolitan Water District of Southern California.

Director Muir moved, Director Tu seconded and the motion carried at 99.49% of the vote.

Administrative and Finance Committee. Director Dixon announced all items had passed in Committee.
Imported Water Committee. Director Muir reviewed the Committee meeting and stated all items had passed.
Engineering and Operations Committee. Director Ferguson reviewed the committee meeting and announced all items had passed in Committee.
Water Planning Committee. Director Saunders reviewed the committee meeting and announced all items had passed in Committee.
Legislation, Conservation and Outreach Committee. Director Steiner announced there was one no vote on the item regarding attendance at General Manager meetings. She reviewed the meeting and stated all items had passed.

9. CONSENT CALENDAR
Director Ferguson moved, Director Croucher seconded, and the motion carried at 99.49% of the vote, to approve the Consent Calendar. Abstentions and those voting no were listed under the item.

10. ACTION / DISCUSSION

10-1 Election of new Board Officers.

The Board elected officers to the Board for a two-year term beginning, January 1, 2007 as follows:

Fern Steiner, Chair

Bud Lewis, Vice Chair

Mark Watton, Secretary

Director Croucher moved, Director Muir seconded and the motion to elect the new Board Officers passed at 99.49% of the vote.

11. CLOSED SESSIONS:

Mr. Hentschke announced there was no need for the Closed Sessions.

12. SPECIAL REPORTS

12-A GENERAL MANAGER’S REPORT – No report was given.

12-B GENERAL COUNSEL’S REPORT – No report was given.

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

12-D SANDAG REPORT – Director Dailey provided the SANDAG report and stated they took a “No” position on the Sunrise Power Line until future study. She stated Senator Kehoe had a forum at SANDAG on energy and staff covered that meeting. Director Muir announced that the crime report was out and crime was down. He stated they have better retreats than the Water Authority.

SANDAG Subcommittee: Borders/Regional Planning Committee –

Director Williams reviewed the recent meetings.

12-E AB 1234 COMPLIANCE REPORTS – Director Ferguson announced she attended the CSDA dinner on November 16, 2006 and she stated she was pleased to announce that Director Muir is the new President and the new Vice President is Director Croucher. She stated she also attended the Coachella Canal Lining event on November 28, 2006. Director Lewis reported he had attended the Council of Water Utilities meeting.

13. OTHER COMMUNICATIONS

14. ADJOURNMENT

There being no further business to come before the Board, Chairman Bond adjourned the meeting at 4:20 p.m.

__________________________________
James H. Bond
Chairman

_______________________________
Claude A. Lewis
Secretary

________________________________
Doria F. Lore, Clerk of the Board

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