MINUTES OF THE ADMINISTRATIVE AND FINANCE COMMITTEE MEETING
JUNE 7, 2007
1. CALL TO ORDER
Director Steiner called the Special Administrative and Finance Committee meeting
to order at 1:32 p.m.
2. ROLL CALL
Committee members present were Vice Chair Price, Directors Hilliker, Johnson,
Lewis, Pocklington, Saunders, Smith, Thompson and Williams. Committee members
absent were Chair Wornham*, Vice-Chair Hogan, Directors Bond, Petty and Quist.
Also present were Directors Arant, Bowersox, Croucher**, Dailey, Ferguson, Knutson,
Lewinger, Linden, McMillan, Muir**, Steiner and Tu**. 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 Operations and Maintenance
Eaton; Director of Engineering Economides; Imported Water Program Director Hess;
Director of Public Affairs Jacoby; Colorado River Programs Director Razak; Director
of Right of Way Rose; Director of Water Resources Weinberg; Director of Administrative
Services Young; and Director of Human Resources Glover; Financial Services Manager/Assistant
Treasurer Delin; Controller Wade; and Budget Officer Ramsey.
*Chair Wornham arrived at 1:34 p.m.
3. PUBLIC COMMENT
There were no members of the public who wished to address the Committee.
4. CONSIDERATION OF FISCAL YEARS 2007-2008 AND 2008-2009 GENERAL
MANAGER’S RECOMMENDED OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGET
Chair Wornham stated that Ms. Stapleton and her staff would give a presentation
regarding the Recommended Two-Year Budget. He stated that questions would be
taken after each individual presentation and any areas requiring more analysis
or detail would be put on a “parking lot list” to respond to at
the next special budget meeting to be held June 14th at 1:30 p.m.
** Directors Croucher, Muir and Tu arrived at 1:40 p.m.
At that time, there was a quorum of the full Board, and the meeting was conducted
as a meeting of the Board.
Ms. Stapleton stated that Directors received a copy of the Multi-Year Recommended
Budget for Fiscal Years 2007-2008 and 2008-2009 at the May 24th Board meeting.
She gave a brief overview of the agenda for the special meeting. She then presented
the water purchases that included an overview of the water supply portfolio,
projected water purchases, and projected rates and costs.
Ms. Stapleton stated that each Department Head would present an overview,
including responsibilities and scheduled accomplishments for the next two-year
period; how execution would be measured; program reviews and resource optimization;
and service highlights.
Mr. Weinberg announced that the Water Authority’s garden entry at the
San Diego County Fair won for most practical landscape. He then presented the
Water Resources portion of the budget.
Director Croucher inquired about the budget for the water conservation garden.
Mr. Weinberg stated that the budget for the conservation garden was $105,000
and was included under other expenses in the budget. Director Croucher stated
that he believes the conservation garden was significant enough to be given
its own line item.
Mr. Hess presented the Metropolitan Water District Program portion of the
budget.
Director Pocklington commented that the Water Authority was the best staff-supported
agency in terms of reviewing Metropolitan issues. He stated that other agencies
look to the Water Authority to share information. He remarked that Gordon Hess
and others that share that work do an outstanding job.
Director Lewis commented that the Water Authority needs to make sure we know
what our rights and position are on preferential rights. He stated that Chair
Steiner has done a marvelous job with Los Angeles and San Diego working together.
Chair Steiner stated that over the next month the Water Authority would be
working with Los Angeles and other delegations to see if we can get a drought
allocation plan at Metropolitan.
Ms. Stapleton stated that Dennis Cushman, Gordon Hess, Mark Stadler, Ken Weinberg
and the staff that support them have done an outstanding job in analyses of
water supplies at Metropolitan and on the State Water Project. She said that
it has been extremely helpful to have open and candid conversations with Metropolitan
and the other member agencies on these issues.
Director Lewinger stated that it would be beneficial for the Water Authority
to determine at what point it would benefit us to have an allocation based on
preferential rights rather than on previous usage.
Director McMillan stated that he feels the importance of the preferential rights
goes away as you diversify, but he does not think it hurts to have them.
Ms. Razak presented the Colorado River Programs portion of the budget.
Director Lewinger inquired about the topics of discussion with Mexico regarding
the Colorado River. Ms. Stapleton gave a brief explanation of the key discussion
items. Director Knutson expressed the importance of these discussions for the
Colorado River Board.
Ms. Young presented the Administrative Services portion of the budget.
There was discussion concerning the due diligence on the insurance program.
Director Lewinger stated that ACWA JPIA rates are based on recent historical
performance and there are retroactive premium adjustments that he hopes staff
would take into account. Ms. Young responded that staff would take that into
consideration.
Mr. Jacoby presented the Public Affairs portion of the budget.
Director Pocklington stated that Chula Vista High School has their own small
television studio through which it communicates with the students. He suggested
that if Public Affairs could put together a five-minute video, it might be a
good opportunity to reach many kids in San Diego County if there was a serious
drought next year.
Mr. Hentschke presented the General Counsel portion of the budget.
Director Steiner left at 3:40 p.m.
Ms. Stapleton presented the General Manager/Board of Directors portion of
the budget.
Director Muir asked if staff could give a better understanding of the decision
to no longer be a part of the New Supply Coalition before the budget is approved.
Ms. Stapleton responded that it would be put on the parking lot list.
Director Knutson and Saunders left at 3:45 p.m.
Directors Croucher, Johnson and Tu left at 3:50 p.m.
Director Muir left at 4:00 p.m.
Ms. Stapleton recognized Ms. Brust for her hard work on the budget. She stated
that Ms. Brust and her team worked long hours, non-stop to produce the budget
document and coordinate the presentations.
Ms. Brust thanked Ms. Stapleton. She stated that she could not have completed
the work without her team. She also recognized the support of the Executive
Staff. Ms. Brust then presented the Finance portion of the budget.
Chair Wornham thanked Ms. Brust and her team for all the work they put into
the budget.
Directors Lewinger and McMillan left at 4:10 p.m.
Mr. Glover presented the Human Resources portion of the budget.
Director Thompson left at 4:20 p.m.
Ms. Stapleton gave a presentation on technical, water association, and business
and community memberships. A list of memberships was distributed.
Ms. Stapleton stated that the next budget meeting would be held on June 14th
at 1:30 p.m. Topics will include the CIP; Engineering, Operations and Maintenance,
Right of Way departments; debt service; and rates and charges.
Director Ferguson asked that a brief explanation of the overall increase or
decrease be given at the beginning of each presentation on June 14th. She also
requested that items in Other Expenses that are greater than $50,000 be identified
during the June 14th presentations.
Director Lewinger inquired why the San Diego Chamber of Commerce was not on
the membership list. Ms. Stapleton stated that this may have been an oversight
and staff will check to see why it was not included. She stated that a variety
of staff have individual memberships and those memberships are not included
on the list. Staff will look at the list to see if anything had been omitted
in error.
5. ADJOURNMENT
There being no further business to come before the Administrative and Finance
Committee, Chair Wornham adjourned the special meeting at 4:32 p.m.
_________________________________
Jesse Dixon, Chair
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