MINUTES OF THE ADMINISTRATIVE AND FINANCE COMMITTEE MEETING
JUNE 14, 2007
1. CALL TO ORDER
Chair Wornham called the Special Administrative and Finance Committee meeting to order at 1:31 p.m.
2. ROLL CALL
Committee members present were Chair Wornham, Vice-Chair Hogan, Vice-Chair Price, Directors Bond, Hilliker, Johnson, Lewis, Petty, Saunders, Smith, Thompson, and Williams. Committee members absent were Directors Pocklington and Quist. Also present were Directors Arant, Barrett, Bowersox, Dailey, Ferguson, Knutson, Lewinger, Linden, McMillan*, 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 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; Director of Human Resources Glover; Financial Services Manager/Assistant Treasurer Delin; Controller Wade; and Budget Officer Ramsey.
* Director McMillan arrived at 1:38 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 this was the second of two Special Administrative and Finance Committee meetings on the Recommended Two-Year Budget. He stated that the first meeting was held on June 7th. He mentioned that Ms. Stapleton and her staff would be giving presentations on water facilities, debt service, and rates and charges, along with a follow-up from the General Counsel from the June 7th meeting. 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 as soon as the information is prepared.
Chair Wornham introduced Ken Williams who would become a member of the Board of Directors representing the city of San Diego pending receipt of the resolution from the city of San Diego.
Ms. Stapleton stated that the June 7th meeting focused on water supply and core business. She gave a brief overview of the agenda for the June 14th meeting.
Chair Wornham applauded staff for all of the time and hard work that went into preparing for both budget meetings. Ms. Stapleton acknowledged the Board on behalf of staff.
Mr. Economides presented the Capital Improvement Program (CIP) portion of the budget.
Chair Wornham recognized Mr. Economides and his staff for their work efforts in managing the CIP projects.
Director Bond asked how much of the amount budgeted for the Colorado River Canal Linings was Water Authority money and how much was being received from grants or other sources. He had to leave the meeting for a speaking engagement, and asked if staff could gather the information and send it to him.
* Director Bond left at 2:20 p.m.
Director Lewinger requested that staff provide a second version of Table 07 (pages 80-81 of the Recommended Budget) categorizing the projects by rate category with subtotals and repeating the rate category code on the left of the chart. Staff will prepare another version of the chart.
Director Saunders asked if staff, at a later date, could provide a better understanding of how the San Vicente Dam Raise project operates in relation to the Emergency Storage Project and the Carryover Storage. Staff will place this item on a future Engineering and Operations Committee agenda.
Director Price inquired about the breakdown of funds for the Colorado River Canal Linings. Ms. Stapleton stated that the State money is not included in our budget; there is a separate fund for the State money. Ms. Razak responded that the Water Authority did get some General Funds, Proposition 50 Funds, and Proposition 84 Funds from the State. The total money from the State was $253 million.
Mr. Economides presented the Engineering portion of the budget.
Mr. Eaton presented the Operations and Maintenance portion of the budget.
Director Bowersox stated his concerns with the proposed budget for the Elfin Forest Reserve.
Director Johnson moved and Director Price seconded a motion to continue the Fiscal Year 2007 budgeted amount for Fiscal Year 2008 for the Elfin Forest Reserve, and have staff work with Olivenhain to do further analyses and comparisons of similar programs; bringing the item back to the Engineering and Operations Committee for further discussion and, if the Engineering and Operations Committee recommends a modification in the budget, bring the item back to the full Board. The motion was adopted unanimously.
Mr. Rose presented the Right of Way portion of the budget.
* Director Arant left at 3:10 p.m.
Director Johnson commended staff on their efforts to resolve encroachment issues.
Vice-Chair Price asked how many unauthorized encroachments the Water Authority currently has and how many of those have been added per year in the last four years. Staff will provide this information.
* Director Steiner left at 3:25 p.m.
Mr. Hentschke presented a follow-up to the General Counsel’s June 7th budget presentation.
Ms. Brust presented the Debt Service and Rates and Charges portions of the budget.
Chair Wornham thanked Ms. Brust and her team for their work on the budget.
Director Saunders requested that staff provide a summary of the new positions, transfers and reclassifications. Staff will provide this information.
Director Price moved and Director Johnson seconded to recommend to the full Board adoption of the total Fiscal Years 2008 & 2009 Recommended Budget, continue the Fiscal Year 2007 budgeted amount for Fiscal Year 2008 for the Elfin Forest Reserve, and have staff work with Olivenhain to do further analyses and comparisons of similar programs; bringing the item back to the Engineering and Operations Committee for further discussion and, if the Engineering and Operations Committee recommends a modification in the budget, bring the item back to the full Board. The motion passed unanimously.
5. ADJOURNMENT
There being no further business to come before the Administrative and Finance Committee, Chair Wornham adjourned the special meeting at 3:52 p.m.
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Thomas Wornham, Chair
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