MINUTES OF THE FORMAL BOARD OF DIRECTORS' MEETING

May 24, 2007

ENGINEERING AND OPERATIONS COMMITTEE MEETING

CALL TO ORDER/ROLL CALL
Chair Ferguson called the Engineering and Operations Committee to order at 9:01 a.m. Committee members present were Vice Chair Bowersox, Vice Chair Johnson, Directors Barrett, Brammell, Hogan, Knutson, Lizzul, Smith, and Thompson. Directors Morrison, Pocklington and Tu arrived at approximately 9:10 a.m. Committee member Petty was absent. There was a quorum of the Committee. Other Board members present were Directors Arant, Bond, Croucher, Hilliker, Lewinger, Lewis, Linden, Muir, Price, and Watton. Staff present was General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Engineering Economides, Assistant Director of Engineering Stift, Director of Operations & Maintenance Eaton, Director of Right of Way Rose, Engineering Manager Reed, Operations & Maintenance Manager Wegand, Senior Engineer, Bride, Engineer, P.E. Whitaker, Special Projects Manager Stewart and Right of Way Agent Shumate.

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 Ferguson began with the introduction of Director Daniel Lizzul, a new Board Member and the representative for Camp Pendleton. Chair Ferguson reminded the Board of the upcoming Annual E&O Tour scheduled for Wednesday, May 30, 2007. All Board Members received a copy of the final itinerary for the tour. Chair Ferguson briefed the Board about the E&O Committee Special Meeting held May 16, 2007 regarding San Vicente Pipeline Differing Site Conditions. Further meetings would be held as needed to keep the committee informed on the efforts to determine a fair adjustment to the contract to complete this important ESP project.

4-B Directors’ comments.

There were no Director's comments.

I. CONSENT CALENDAR

1. Construction contract for a cathodic protection system for the Ramona Pipeline, Phase II.

Staff recommendation: Award a construction contract to American Construction and Supply, Inc. for $678,906 for the construction of a cathodic protection system for the Ramona Pipeline, Phase II.

Director Knutson moved, seconded by Director Thompson and the motion to accept the Consent Calendar passed unanimously.

II. ACTION/DISCUSSION

1. Accept the San Diego County Grand Jury Report on the Emergency Storage Project and direct the General Manager to respond to report’s recommendations.

Staff recommendation: Accept the recently released San Diego County Grand Jury Report: San Diego County Water Authority Emergency Storage Project report and direct the General Manager to respond to the recommendations as outlined in the report.

Director Knutson moved, seconded by Director Barrett and the motion to direct the General Manager to respond to the recommendations as outlined in the report passed unanimously.

Chair Ferguson and Ms. Stapleton congratulated staff on the glowing comments made in the Grand Jury report, page 12 commendations.

2. Lake Hodges

2-A Lake Hodges construction update.

Mr. Bride, Senior Engineer and Construction Administrator for the Lake Hodges projects, gave a presentation consisting of a construction update on the progress on the Lake Hodges Projects.

2-B Notice of Completion for the Lake Hodges to Olivenhain Pipeline.

Staff recommendation: Authorize the General Manager to accept the Lake Hodges to Olivenhain Pipeline project as complete, record the notice of completion and release funds held in retention to Kiewit Pacific following the expiration of the notice of completion period.

Director Barrett moved, seconded by Director Hogan and the motion to adopt staff’s recommendation passed unanimously.

2-C Professional Services Contract with GEI Consultants for the development of the Lake Hodges Reservoir Regulating Manual.

Staff Recommendation: Award a professional services contract to GEI consultants, Inc., for an amount not-to exceed $300,000 for the development of the Reservoir Regulating Manual for the Lake Hodges Projects.

Mr. Wegand presented on the progress of the Technical Advisory Committee and the need for the development of a regulating manual.

Director Lewis asked if the pipes had warranties. Mr. Bride responded that there was a two-year warranty period with periodic inspections to make sure there are no problems with the lining or the welding. If problems were found, the contractor would repair them within the two-year warranty period. The expected life of the pipe is 100 years.

Director Morrison asked for clarification about the Committee setting up standards on water quality and if those standards would not only deal with the impacts downstream but also supercede any power contracts or other requirements before that water would be introduced into the aqueduct system? Mr. Wegand responded yes, the water quality and water would be the primary focus.

After a brief discussion regarding the Reservoir Regulating Manual, the Operating Plans, and water quality, Director Knutson moved, seconded by Director Barrett and the motion to adopt staff’s recommendation passed unanimously.

3. Grant of easement to San Diego Gas & Electric for realigned and increased power service to the Twin Oaks Valley Water Treatment Plant.

Staff recommendation: Authorize the General Manager to execute a Grant of Easement for electrical facilities to SDG&E.

Ms. Shumate gave a presentation on the grant of easement to SDG&E for the Twin Oaks Valley Water Treatment Plant

Director Tu moved, seconded by Director Johnson and the motion to adopt staff’s recommendation passed unanimously.

4. I-15 Crossing Improvements.

This agenda item was continued to the June Board meeting.

III. INFORMATION

1. Presentation by Olivenhain Water District Parks Department on Olivenhain Reserve.

Mr. Eaton discussed the background and requirements of the agreement between the San Diego County Water Authority and Olivenhain Municipal Water District for the Emergency Storage Project and joint use of the Olivenhain Reservoir site. Mr. Eaton introduced Mr. Joe Randall, OMWD’s Park Supervisor to address the Committee and provide an overview of the Elfin Forrest Recreational Preserve. The Committee discussed certain aspects of the agreement and Chair Ferguson requested a copy of the PowerPoint presentation.

2. Presentation on Energy Program.

Ms. Stewart gave a presentation on the focus areas and goals of the energy program. The Committee briefly discussed the focus, goals and the mission statement for the energy program.

Chair Ferguson recognized Director Knutson who made an announcement to the Committee and Board regarding the American Society of Civil Engineers’ annual awards ceremony held on May 12. The Rancho Penasquitos PCF/Hydroelectric Facility received an award for Outstanding Project of the Year.

IV. CLOSED SESSION
There were no Closed Session items.

V. ADJOURNMENT
There being no further business to come before the Committee, Chair Ferguson adjourned the meeting at 9:53 a.m.

IMPORTED WATER COMMITTEE

CALL TO ORDER / ROLL CALL
Chair Croucher called the Imported Water Committee to order at 10:02 a.m. Committee members present were Directors Brammell, Ferguson, Johnson, Knutson, Lewinger, Linden, Lizzul, Price, Steiner, and Tu. Directors McMillan, Martin, and Parker were absent. Also present were Directors Arant, Barrett, Bowersox, Hilliker, Hogan, Lewis, Pocklington, Saunders, Smith, Watton, Williams, and Wornham. 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, 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 Croucher welcomed Director Lizzul to the Imported Water Committee and stated that the Governor appointed Directors Knutson and Saunders to the Colorado River Board. He gave a brief report on the ACWA conference that was held earlier in the month in Sacramento.

4-B Directors’ comments.

Directors Tu, Johnson, Linden, Arant, and Williams commented on their attendance at the ACWA conference, including the Governor’s speech.

I. CONSENT CALENDAR

Execution of Water Code Section 12562(b) Funding Agreement with the Department of Water Resources; and adopt Resolution No. 2007-09 for Groundwater Conjunctive Use Projects.

Staff recommendation: Authorize execution of Water Code Section 12562(b) Funding Agreement with the Department of Water Resources; and adopt a resolution for the Groundwater Conjunctive Use Projects.

Director Knutson made a motion, Director Tu seconded, and the motion passed unanimously to authorize the staff recommendation.

II. ACTION/DISCUSSION

1. MWD Issues and Activities.

1-A MWD Delegates report.

There were no comments by the delegates.

2. Colorado River Programs.

2-A Colorado River report.

Director Saunders discussed the Seven Basin States drought mitigation proposal for the Colorado River that was submitted to the Bureau of Reclamation. He requested that a report be given at the next Committee meeting to address the Water Authority’s participation in intentionally created surplus water supplies at Lake Mead.

2-B Colorado River Programs Ad Hoc Committee report.

Director Watton stated that the dispute regarding the mitigation of potential socioeconomic impacts from the water transfer was settled with IID. He said that discussion would continue with IID to extend the price reset deadline to June.

III. INFORMATION

1. Update on Superior Court ruling regarding State Water Project operations.

Mr. Hentschke stated that an appeal was filed on the ruling that the Department of Water Resources had failed to comply with environmental laws designed to protect the delta smelt and other threatened fish from state pumping operations, and that the judgment to halt the pumps was stayed. Ms. Stapleton stated that the Department of Water Resources was reducing its flow through the end of the month, based on a low smelt survey in order to determine the next steps to take on the SWP’s operations. She said the Board would be kept informed as new information was received. Mr. Cushman discussed how the smelt were an indicator species for the Delta and that their decline could affect the SWP’s operations.

The following information item was noted and filed:

2. Imported Water activities report.

The committee went into closed session at 10:20 a.m.

IV. CLOSED SESSION

1. CLOSED SESSION:

Conference with Legal Counsel – Existing Litigation
Government Code §54956.9(a)

i. Coachella Canal Lining Contract Arbitration

The Committee reconvened at 10:25 a.m. General Counsel Hentschke stated that there was no reportable action taken on the closed session item.

V. ADJOURNMENT
There being no further business to come before the Imported Water Committee, Chair Croucher adjourned the meeting at 10:26 a.m.

LEGISLATION, CONSERVATION, AND OUTREACH COMMITTEE

CALL TO ORDER/ROLL CALL
Chair Tu called the Legislation, Conservation and Outreach Committee to order at 10:36 a.m. Committee members present were Chair Tu, Vice Chairs Morrison and Williams and Directors Arant, Bond, Croucher, Hilliker, Muir, Steiner, Thompson, Watton, and Wornham. Committee members absent were Directors Dailey and Quist. Also present were Directors Barrett, Bowersox, Brammell, Ferguson, Hogan, Knutson, Lewinger, Lewis, Linden, Lizzul, Pocklington, Price, Saunders, and Smith. 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 votes. Staff present was General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Public Affairs Jacoby, and Director of Water Resources Weinberg.

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 Tu announced that the 2006 annual report had been distributed to all board members.

4-B Directors’ comments.

There were no Directors' comments.

I. CONSENT CALENDAR

1. Approve a Memorandum of Understanding between the San Diego County Water Authority and city of San Diego Water Department for Landscape Water Conservation Programs in the amount of $375,000 for fiscal years 2008, 2009, and 2010.

Staff recommendation: Approve the agreement between the Water Authority and the San Diego Water Department for $375,000 for landscape water conservation programs.

Chair Tu pulled this item and continued it to the July agenda.

2. Approve Agreement between the San Diego County Water Authority and United States Bureau of Reclamation and approve agreements between Metropolitan Water District of Southern California for a Residential Water Budget Pilot Program and between San Diego County Water Authority and Rincon del Diablo Municipal Water District to pass-through grant funding for a total of $158,800.

Staff recommendation: Approve the agreements between the Water Authority and United States Bureau of Reclamation for $67,400 and Metropolitan Water District of Southern California for $91,400 for a Residential Water Budget Pilot Program and between the Water Authority and Metropolitan Water District of Southern California to pass-through grant funding in the amount of $158,800.

3. Secure funding from the Metropolitan Water District of Southern California’s Conservation Credit Program for the Commercial, Industrial, and Institutional Voucher Program.

Legislation, Conservation and Outreach Committee recommendation: Enter into a contract with Metropolitan Water District of Southern California to obtain funding for the CII Voucher Incentive Program for fiscal year 2008.

4. Approve Agreement between the San Diego County Water Authority and Metropolitan Water District of Southern California for the Landscape Auditor Intern Program for grant funding for a total of $142,935.

Staff recommendation: Approve the agreement between the Water Authority and Metropolitan Water District of Southern California for $142,935 for the Landscape Auditor Intern Program.

5. Approve Agreement between the San Diego County Water Authority and Mission Resource Conservation District for operation of the Agricultural Water Management Program in the amount of $155,000 for fiscal years 2008, 2009, and 2010.

Staff recommendation: Approve the agreement between the Water Authority and Mission Resource Conservation District for $155,000 for the Agricultural Water Management Program for fiscal years 2008, 2009, and 2010.

6. Adopt positions of: Support on AB 566 (Plescia); Support on AB 662 (Ruskin); Support on AB 715 (Laird); Support on SB 1029 (Ducheny); and Support on HR 29 (Issa).

Staff recommendation: Adopt positions of: Support on AB 566 (Plescia); Support on AB 662 (Ruskin); Support on AB 715 (Laird); Support on SB 1029 (Ducheny); and Support on HR 29 (Issa).

Director Croucher moved, Director Williams seconded, and the motion carried unanimously to approve Items 2 through 6 of the Consent Calendar.

II. ACTION/DISCUSSION

1. Legislative issues.

1-A Report by Carpi and Clay.

Legislative Advocate B. Clay reported on issues in Sacramento subsequently, Legislative Advocate K. Carpi reported on issues in Washington, D. C., during the full board meeting.

1-B Adopt position of: Oppose on AB 885 (Calderon).

Staff recommendation: Adopt position of Oppose on AB 885 (Calderon).
Director Steiner moved, Director Wornham seconded and the motion carried unanimously.

Assistant General Manager Cushman announced that AB 1420 (Laird) would be discussed at the June committee meeting.

2. Water Conservation

2-A Presentation on the Water Conservation Draft Blueprint.

Water Resources Manager Roy provided a presentation on the blueprint for water conservation including timeline; basis for blueprint; partnerships; blueprint schematic; Water Authority, member agency, and Conservation Garden roles; residential and commercial, industrial institutional indoor, agricultural program, and landscape strategies; creation of an industry cluster; making water efficient landscaping an option; supporting certification programs; creating a public outreach plan; and holding a summit in 2007.

2-B Conservation Ad Hoc Committee report.

Director Muir congratulated the staff on work done and provided an update of the ad hoc committee activities.

2-C Conservation Garden proposed budget.

Director Muir moved, Director Williams seconded, and the motion carried unanimously to approve the proposed Conservation Garden budget for fiscal year 2008.

III. INFORMATION

1. San Vicente Dam Raise and Carryover Storage Outreach update.

Public Affairs Representative Reed provided an outreach update, including San Vicente Dam raise facts, search for recreational users, building support, stakeholder interviews, stakeholder findings, and summer outreach activities.

The following items were received and filed:

2. Peak treated water demand management update.

3. Status report on legislation and legislative positions.

4. SCOOP Quarterly report.

5. Water Conservation Garden report.

6. Outreach activities for the month of April 2007.

IV. CLOSED SESSION
There were no Closed Session items.

V. ADJOURNMENT
There being no further business to come before the Legislation, Conservation and Outreach Committee, Chair Tu adjourned the meeting at 11:42 a.m.

ADMINISTRATIVE AND FINANCE COMMITTEE

CALL TO ORDER / ROLL CALL
Chair Wornham called the Administrative and Finance Committee meeting to order at 1:00 p.m. Committee members present were Chair Wornham, Vice Chairs Hogan and Price, Directors Bond, Hilliker, Johnson, Pocklington, Quist, Saunders, Smith, Thompson, and Williams. Committee members absent were Directors Lewis* and Petty. Also present were Directors Arant, Barrett, Bowersox, Brammell, Ferguson, Knutson, Lewinger, Linden, Lizzul, Morrison, Muir, Steiner, 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, Director of Finance/Treasurer Brust, Director of Administrative Services Young, Director of Human Resources Glover, 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.

**Director Lewis arrived at 1:03 p.m.

CHAIR'S REPORT
Chair Wornham announced that the General Manager’s Recommended Budget had been distributed to all board members and asked that members review the document prior to the Special Administrative and Finance meetings scheduled for June 7 and 14, at 1:30 p.m.

Director Steiner requested a digital copy of the recommended budget document. General Manager Stapleton stated a digital copy of the document would be available.

4-B Directors’ comments.

There were no comments from Directors.

I. CONSENT CALENDAR

1. Treasurer’s report.

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

2. Adopt a Resolution setting a Public Hearing date for the Water Authority’s calendar year 2008 Rates and Charges and the Annual Standby Availability Charge.

Staff recommendation: Adopt Resolution Number 2007-__ setting the time and place for a public hearing on June 28, 2007 at 1:00 p.m. or as soon thereafter as may practicably be heard during the Administrative and Finance Committee meeting, to receive comments regarding establishing a customer service charge, a storage charge, a transportation charge, an infrastructure access charge, a melded supply charge and a melded treatment charge for calendar year 2008, and continuing the existing Standby Availability Charge at its current level for fiscal year 2007-2008.

Director Price moved, Director Quist seconded, and the motion carried unanimously to approve the consent calendar.

II. ACTION/DISCUSSION

1. Overview presentation of Fiscal Years 2007-2008 and 2008-2009 General Manager’s Recommended Budget.

General Manager Stapleton provided a presentation of Fiscal Years 2007-2008 and 2008-2009 Recommended Budget covering the execution of the CIP, management of assets and impact of new facilities, conservation and local supplies, rate impacts, timeline, and budget workshop highlights.

Director Lewis asked where the Maintenance and Replacement program was located in the recommended budget document. Ms. Stapleton stated that the program was part of the $2M “Other” allocation, on slide 4 – Budgeted Expenditures, which includes an equipment replacement fund.

Director Quist requested a cost per acre-foot breakdown of the three components that make up the water supply: the IID water transfer, Coachella Canal lining and MWD.

Director Muir asked when the Water Authority would shift its focus from budgeting for expansion to budgeting for maintenance. Ms. Stapleton stated the Water Authority would move from growth to maintenance mode in the year 2011.

Chair Wornham and Director Steiner recognized the efforts of the General Manager, Director of Finance/Treasurer Brust, and Water Authority staff for their efforts preparing the recommended budget.

2. Request by the city of San Diego for Waiver of Delinquency Charge.

Staff recommendation: Enforce the Water Authority’s Administrative Code and deny the city of San Diego’s request for a waiver of the delinquency charge for late payment of the second quarter capacity collection due on January 30, 2007.

Director Barrett, on behalf of the city of San Diego, requested a waiver of the delinquency charge as well as clarification to the Administrative Code regarding waiver provisions.

Director Brammell asked staff for clarification regarding when payments are considered late. Director Brammell asked if payments were considered paid when the Water Authority received the payment check, or when the payment funds cleared in the Water Authority’s account.

Director Ferguson asked staff for clarification as to whether the purchase of water by a member agency constitutes a contract between the member agency and the Water Authority. Ms. Stapleton stated clarification would be provided.

After a lengthy discussion, Director Price moved to continue the request by the city of San Diego for waiver of delinquency charge to the July 26, 2007 Board meeting and direct staff to return with specific information/recommendations related to the waiver provisions of the Administrative Code and the prior delinquent charge payees. Director Saunders seconded and the motion carried unanimously.

III. INFORMATION

1. Presentation on draft report on GASB 45 relating to retiree healthcare benefits.

John Bartel of Bartel Associates, LLC, presented the preliminary results of the January 1, 2007 actuarial valuation of the retiree healthcare plan. Mr. Bartel stated that the Unfunded Actuarial Liability is approximately $2.3M with no pre-funding (or, “pay-as-you-go”) using a 5% discount rate, or approximately $2.0M if pre-funded in an irrevocable trust fund using a 7% discount rate.

**Director Hilliker left the room at 2:10 p.m.

The following items were received and filed:

2. Controller’s report on monthly financial statements.

3. Board calendar.

IV. CLOSED SESSION

1. Conference with Labor Negotiator
Government Code §54957.6
Agency Designated Representatives: Paul Lanspery, Karen Brust, Matt Brown, Tim Clement, Malcolm Glover, Bill Rose
Employee Organization: California Teamsters Public, Professional and Medical Employees Union Local 911

The Committee went into closed session at 2:25 p.m. and reconvened at 3:07 p.m. General Counsel Hentschke stated there were no reportable actions taken on the closed session item.

V. ADJOURNMENT
There being no further business to come before the Administrative and Finance Committee, Chair Wornham adjourned the meeting at 3:08 p.m.

WATER PLANNING COMMITTEE MEETING

CALL TO ORDER / ROLL CALL
Chair Lewinger called the meeting to order at 3:15 p.m. Committee members present were Vice Chairs Muir and Saunders, Directors Arant, Barrett, Bowersox, Lewis, Linden, McMillan, Parker, and Steiner. Committee members absent were Directors Dailey and Martin. Also present were Directors Brammell, Croucher, Ferguson, Hogan, Johnson, Knutson, Lizzul, Price, Quist, Smith, Thompson, Tu, 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 Manager Yamada, and Principal Water Resources Specialist Friehauf.

There was a brief recess of the Water Planning Committee to present the graduates of the internship program from 3:18 p.m. to 3:25 p.m. This item was listed as time certain on the Formal Board agenda.

A DDITIONS 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 Lewinger reviewed items related to the Committee.

• EIR-EIS for the Carryover Storage Project would be released for public review the first week of July. The Committee would hold two public hearings; Wednesday, August 8, in Valley Center at the Valley Center Community Hall, and Monday, August 13, in Lakeside at the Lakeside Community Center.

• Volunteers from the committee were Directors Saunders, Bowersox, Steiner, Linden, Arrant, Barrett, Johnson, Muir, for the Valley Center hearing. Directors Barrett, Bowersox, Linden, Muir, Saunders, and Steiner volunteered for the Lakeside hearing. Directors Croucher, Johnson and Smith also volunteered to attend.

• A draft Integrated Regional Water Management Plan (IRWMP) would be released for public review in June. The draft plan contains projects that have been prioritized into two tiers.

a. Applications for Proposition 50 grant funding are due to the state August 1. The guidelines would allow submittal of a draft plan and remain eligible for funding.

b. Staff would recommend the committee accept the public review draft plan in July as part of the application package submitted to the state.

c. The committee would be scheduled to consider adoption of the final plan in November.

4-B Directors’ comments.

There were no Director’s comments.

I. CONSENT CALENDAR
There were no items on the consent calendar.

II. ACTION/DISCUSSION

Approval of Local Investigative Study Assistance Program Performance Criteria and Update on Proposal Submittals for the First Funding Cycle.

Staff recommendation: Approve the performance criteria for the Local Investigations and Studies Assistance Program.

Director Arant moved, Director Barrett seconded, and the motion passed unanimously to approve the performance criteria for the Local Investigations and Studies Assistance Program

III. INFORMATION

1. Presentation on Drought Management Plan implementation.

Presentation on Drought Management Plan implementation was deferred to the June Board meeting.

2. Status of Integrated Regional Water Management Planning in San Diego Region.

Status of Integrated Regional Water Management Planning in San Diego Region was deferred to the June Board meeting.

3. Water Resources Report

The Water Resources Report was received and filed.

IV. CLOSED SESSION

The committee went into closed session at 3:20 p.m.

1. Conference with Legal Counsel – Existing Administrative Proceeding
Government Code §54956.9(a)
Name of Case: Regional Water Quality Control Board Administrative Civil Liability (ACL) Complaint
No. R9-2007-0014

The committee reconvened at 3:40 p.m. General Counsel Hentschke reported that there were no reportable actions on the Closed Session item.

V. ADJOURNMENT
There being no further business to come before the Water Planning Committee, Chair Lewinger adjourned the meeting at 3:45 p.m.

FORMAL BOARD OF DIRECTORS’ MEETING OF MAY 24, 2007

1. CALL TO ORDER Chair Steiner called the Formal Board of Directors’
meeting to order at 3:18 p.m. She announced the agenda items would be taken out of order and the meeting would begin with item 7-A.

7. PRESENTATIONS & PUBLIC HEARINGS

7-A Internship Graduation presentation.

Director of Operations and Maintenance Eaton reviewed the internship program and introduced the graduates.

The meeting went into recess at 3:25 p.m. so the Water Planning Committee could conclude their meeting.

At 3:50 p.m. the Formal Board meeting resumed.

2. SALUTE TO THE FLAG Director Wornham led the salute to the flag

3. ROLL CALL, DETERMINATION OF QUORUM

Secretary Watton called roll. Directors present were Arant, Barrett, Bowersox, Brammell, Croucher, Ferguson, Hogan, Johnson, Knutson, Lewinger, Lewis, Linden, Lizzul, Muir, Pocklington, Price, Quist, Saunders, Smith, Steiner, Thompson, Tu, Watton, Williams and Wornham. Directors absent were Bond, Dailey (p), Hilliker (p), Martin (p), McMillan, Morrison, Parker, Petty (p), and Representative Slater-Price.

3-A Report on proxies received.

Director Linden had the proxy for Director Hilliker, Director Lewis for Director Martin, Director Lewinger for Director Petty, and Director Bowersox for Director Dailey.

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

5. APPROVAL OF MINUTES Director Ferguson moved, Director Wornham
seconded and the motion carried for a total of 95.43% of the vote to approve the
minutes of the Special Board of Directors’ meeting of April 12, 2007, and the Formal Board of Directors’ meeting of April 26, 2007.

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-B Retirement of Director. The Board adopted Resolution No. 2007-11 honoring Ed Rogers upon his retirement from the Board of Directors.

7-C Appointment of Director. Daniel M. Lizzul representing Camp Pendleton Military Reservation. Term expires January 12, 2008. Director Lizzul stated he was honored to be serving on the Water Authority’s Board.

7-D Recognition of Debbie Espe, Employee of the Third Quarter. Ms. Espe was recognized as employee of the third quarter.

8. REPORTS BY CHAIRS

8-A Chair’s Report – Chair Steiner. Chair Steiner reported she had begun giving presentations concerning water supply to the member agencies with Ms. Stapleton and Mr. Cushman. She reviewed her meetings with Marcy Edwards, the MWD delegate from Anaheim, and Stella Mendoza from Imperial Irrigation District, and an upcoming tour of the Imperial Irrigation District is planned for August. She stated the Water Authority and the Otay Water District were both up for Regional Golden Watchdog awards from the Tax Payers Association. She announced that Ken Carpi would be providing his report as part of the Chair’s report. Mr. Carpi provided his report.

8-B Strategic Plan Ad Hoc Committee update. Director Bowersox thanked the Committee members for their work and reviewed the progress that had been made. He stated a Board Workshop would be scheduled for the fall.

Engineering and Operations Committee. Director Ferguson announced item number 9-6, I-15 crossing improvements, had been continued to the June 28, 2007 meeting and all other items had passed in Committee.

Imported Water Committee. Director Croucher reviewed the Committee meeting.

Legislation, Conservation and Outreach Committee. Director Williams announced item 9-8, the Landscape Water Conservation Program, had been continued to the June 28, 2007 meeting and all other items had passed in Committee.

Administrative and Finance Committee. Director Wornham announced the Treasurer’s report had been received and filed and the Public Hearing date for rates and charges had been set for the June Board meeting. He stated item 9-17, the request by the city of San Diego for the waiver of fees, had been continued to the July 28, 2007 Board meeting.

Water Planning Committee. Director Lewinger stated the action item had been approved.

9. CONSENT CALENDAR

Director Knutson moved, Director Barrett seconded, and the motion carried at 95.43% of the vote, to approve the Consent Calendar. Abstentions and those voting no were listed under the item.

10. ACTION / DISCUSSION

There was no action taken on this item.

11. CLOSED SESSIONS:

General Counsel 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 – Director Linden announced the drop in the loss ratios of the liability, workers compensation, and property program. He stated the workers compensation had a significant reduction of 28%.

12-D SANDAG REPORT – Chair Steiner read the SANDAG report that
Director Dailey submitted to her. Staff attended the May SANDAG meeting due
to the ACWA conference and submitted a detailed report.

SANDAG Subcommittee: Borders/Regional Planning Committee – Director Williams stated the SANDAG Economic Study was expected soon. He announced the expansion of the San Ysidro crossing construction was scheduled to begin in 2009 and completion was expected in 2014. The Otay crossing expansion had the same time frame.

12-E AB 1234 COMPLIANCE REPORTS – Director Lewis announced he
attended the Council of Water Utilities meeting and provided a summary of that
meeting.

13. OTHER COMMUNICATIONS

None.

14. ADJOURNMENT

There being no further business to come before the Board, Chair Steiner adjourned the meeting at 4:25 p.m. in the memory of Tom Fat who was a leader in San Diego Civic activities and very active in the Asian business community.

__________________________________
Fern M. Steiner
Chair

_______________________________
Mark W. Watton
Secretary

_______________________________
Doria F. Lore, Clerk of the Board

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