MINUTES OF THE SPECIAL BOARD OF DIRECTORS' MEETING
Jan. 11, 2007
Call to Order/ Roll call – determination of a Quorum
Chair Steiner called the meeting to order at 1:30 p.m. Clerk of the Board Lore called roll. Directors present were Arant, Barrett, Bond, Bowersox, Brammell, Croucher, Dailey, Ferguson, Hilliker, Hogan, Johnson, Knutson, Lewinger, Lewis, Linden, Martin, Morrison, Muir, Parker, Petty, Pocklington, Price, Saunders, Smith, Steiner, Thompson, Tu, Watton, Williams, Wornham and Representative Slater-Price. Directors absent were McMillan, Quist, Rogers, and Representative Slater-Price. Staff present was General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Finance/Treasurer Brust, Director of Water Resources Weinberg, and others.
Chair’s report
Chair Steiner introduced two new Board members that were attending their first Board meeting. Director Frank Hilliker of the Lakeside Water District and Director Richard Smith from the Helix Water District.
She announced the following interim appointments: Fred Thompson was assigned to Legislation, Conservation and Outreach Committee, Yen Tu and John Johnson were assigned to Imported Water Committee, and she stated she would serve on the Water Planning Committee due to the representative vacancies from the city of San Diego. In addition, she stated Tom Worhham had been assigned to the Comprehensive Reliability and Cost Assessment Ad Hoc Committee and Richard Smith was assigned to the Conservation Ad Hoc Committee.
She stated the meeting was an informational meeting and no action would be taken.
Comprehensive Reliability and Cost Assessment project
- Risk assessment of imported supplies
- MWD’s long-range rate projections
- Foundational assumptions for rate run scenarios
Ms. Stapleton reviewed the process of what the Board could expect over the next
few months and introduced Mr. Lanspery. Mr. Lanspery reviewed the agenda and the reliability and cost assessment process and introduced Mr. Weinberg. Mr. Weinberg reviewed the Imported Supply Risk Assessment. This included the 2004 Master Plan reliability analysis, 2004 Master Plan – 2020 local supply and weather variability,
Local supply implementation, Metropolitan Water District Imported Water supply reliability, and Metropolitan supply planning and major supply sources.
Director Lewinger asked about the State Water Project deliveries in relation to SB27. Mr. Cushman responded that Metropolitan Water District, as well as the Water Authority, had concerns regarding many provisions of the bill. He also stated there were areas of concern in the bill and areas of opportunity.
Ms. Brust reviewed MWD’s long-range rate projections. She stated MWD had recently provided the Water Authority with a new ten-year forecast which is significantly higher than the MWD 2004 Long-Range Finance Plan High Rate Assumption that was incorporated into the Water Authority’s water rate projections. The factors cited in the revenue requirement letter for rate adjustments include: increased capital financing costs, increased State Water Project and Colorado River Aqueduct power costs, and increased Operations and Maintenance costs.
Director Lewinger requested an IID supply cost analysis. Ms. Stapleton responded the price-reset information would be coming to the Board and the IID supply cost analysis would be part of those discussions.
Mr. Lanspery reviewed foundational assumptions in rate run scenarios. He stated the elements reflect current Board policy, including regional desalination and conveyance removed from the CIP, CIP re-costed per analysis by Construction Cost Ad-Hoc Committee, updated water sales forecast reflecting 50 MGD local desal, 100,000 AF conservation by 2030, and an additional 96,000 AF in local project supplies per the 2005 Urban Water Management Plan, and revised financial policies. He reviewed the timeline for the upcoming meetings over the next several months.
Director Lewis stated if the Encina desalination plant was built he would like the Board to consider involvement in the facility.
Chair Steiner announced she, Ms. Stapleton and Mr. Cushman met with David Nahai, Chief Commissioner for the Los Angeles Department of Water and Power and they would be meeting quarterly in the future. She also stated she attended the Multi-State Salinity Coalition and introduced Mr. Mark Limbaugh from the Department of the Interior. She further stated Mr. Limbaugh had toured with Ms. Stapleton two of the Water Authority facilities.
Adjournment
There being no further business to come before the Board, Chair Steiner adjourned the meeting at 3:08 p.m.
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Fern M. Steiner, Chair
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