MINUTES OF THE FORMAL BOARD OF DIRECTORS' MEETING

August 23, 2007

ENGINEERING AND OPERATIONS COMMITTEE MEETING

CALL TO ORDER/ROLL CALL
Vice-Chair Johnson called the Engineering and Operations Committee to order at 9:00 a.m. Committee members present were Vice Chair Bowersox, Directors Barrett, Brammell, Hogan, Knutson, Petty, Pocklington, Smith, Thompson, and Tu*. Committee members absent were Chair Ferguson, Directors Lizzul and Morrison. There was a quorum of the Committee. Director Tu arrived at 9:10 a.m. Other Board members present were Directors Lewinger, McMillan, Price, and Kenneth Williams. Staff present was General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Belock, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Engineering Economides, Director of Operations and Maintenance Eaton, Director of Right of Way Rose, and Assistant Director of Engineering Stift.

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
Vice-Chair Johnson announced a Special E&O Committee meeting would be held on Wednesday, September 12, from 12:30 p.m. to 2:30 p.m., to receive an update and continued discussions about the harder-than-expected rock encountered, and differing site condition negotiations for the San Vicente Pipeline.

* Director Tu arrived at 9:10 a.m.

Risk Manager Homer reported the Site Emergency Response Plan was successfully executed on August 21 at the San Vicente Pipeline tunnel site when a worker in the tunnel suffered what appeared to be a heart attack. On-site medical staff called 911, revived the worker and transported him to a hospital by ambulance. Mr. Homer commented that the incident demonstrated the value of the Board's decision requiring on-site medical services be provided as part of the Owner Controlled Insurance Program coverage for the Emergency Storage Project.

DIRECTORS’ COMMENTS
There were no Director's comments.

I. CONSENT CALENDAR

1. Professional Services Contract for construction management and in-field inspection services for the Pipeline 3 Relining project, State Route 52 to Lake Murray.

Staff recommendation: Award a professional services contract to Malcolm Pirnie, Inc. for $2,115,000 for construction management and in-field inspection services for the Pipeline 3 Relining project, State Route 52 to Lake Murray.

2. Agreement with Padre Dam Municipal Water District for Design, Construction, Operation, and Maintenance of Padre Dam 7 Flow Control Facility.

Staff recommendation: Authorize the General Manager to sign an agreement with Padre Dam Municipal Water District (Padre Dam MWD) for design, construction, operation, and maintenance of the Padre Dam 7 Flow Control Facility (FCF), and decrease the Padre Dam 7 FCF project budget by $2,031,000.

3. Professional Services Contract with Pure Technologies for acoustical fiber optic monitoring.

Staff recommendation: Award a professional services contract to Pure Technologies Inc., for an amount not to exceed $445,752 to continue 24/7 acoustic fiber optic monitoring of prestressed concrete cylinder pipe for an additional 21-month period, through June 30, 2009.

4. Five-year service contract with AT&T for Aqueduct Control System data communication.

Staff recommendation: Award a five-year professional services contract with AT&T for utility service to support the Aqueduct Control System, for an amount not to exceed $240,000.

5. Grant of easement to San Diego Gas and Electric Company to provide electric facilities for the San Vicente Reservoir Interconnect Pipelines.

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

6. Approve ordinance amending Chapters 4.00 and 7.00 of the Administrative Code relating to right of way management.

Staff recommendation: Adopt Ordinance No. 2007-____, an ordinance of the board of directors of the San Diego County Water Authority adding section 4.00.070 to chapter 4.00; amending sections 7,00.040, 7.00.050, 7.00.060, 7.00.070, 7.00.080, and 7.00.090 of chapter 7.00; and adding section 7.00.190 to chapter 7.00 of the Administrative Code relating to right of way management.

7. Construction contract for the test quarry and rock crushing for design of the San Vicente Dam Raise project.

Staff recommendation: Award a construction contract to Sukut Construction Incorporated for $497,400 for test quarry and rock crushing for the design of the San Vicente Dam Raise project.

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

II. ACTION/DISCUSSION

1. Twin Oaks Valley Water Treatment Plant
1-A Presentation on Project update

Senior Engineer Suydam presented an update on the Twin Oaks Valley Water Treatment Plant project, and background on the CH2M Hill change order and the Malcolm-Pirnie, Inc. professional services contract.

Vice Chair Johnson instructed the Committee to separately consider Items 1-B
and 1-C.

1-B Change Order to Twin Oaks Valley Water Treatment Plant professional services contract.

Staff recommendation: Approve a change order for reimbursement to CH2M Hill for escalation of material costs, a change in tariffs, access road inspection, and upgraded lighting fixtures, for a total value not to exceed $768,500 increasing the design-build Service Contract from $157,558,882 to $158,327,382.

Director Knutson moved, Director Petty seconded and the motion to accept the staff recommendation passed unanimously.

1-C Amend a professional services contract with Malcolm Pirnie, Inc., for owner’s representative services on the Twin Oaks Valley Water Treatment Plant project.

Staff recommendation: Approve Amendment Three for $200,000 to provide additional claim support services, increasing the contract amount from $3,420,000 to $3,620,000.

Director Pocklington moved, Director Smith seconded and the motion to accept the staff recommendation passed unanimously.

III. INFORMATION

1. Presentation for advertisement for bids for the construction of the San Vicente Reservoir Interconnect Pipeline.

Engineer Whitaker informed the Committee that an advertisement for bids would be published for the San Vicente Reservoir Interconnect Pipeline construction project, which will connect the San Vicente Pumping Facilities with the future San Vicente Dam Raise project.

2. Presentation on Quagga Mussel update.

O&M Director Eaton presented an update on the infestation of the quagga mussel in the MWD and Water Authority systems. Mr. Eaton stated since the January 2007 discovery of the quagga mussel in Lake Mead it has moved through the system rapidly, and on August 13 staff from the city of San Diego discovered larval stages of the mussel in Lake San Vicente. City of Escondido divers at Lake Dixon found possible adult quagga mussels the week of August 20. Samples were being tested.

Mr. Eaton reported that MWD is adding chlorine at Lake Skinner in an attempt to control the quagga mussel, but chlorine can cause problems for treatment agencies. Recently, the Quagga Mussel Control Workgroup was formed with representatives of the Department of Fish and Game, our member agencies, MWD, the Department of Public Health, and the Water Authority. The Workgroup's August 30 meeting would discuss conducting a regional vulnerability analysis from which the Workgroup would prioritize an inspection program for the region and develop phase-control measures. The Department of Public Health and MWD staff will conduct a workshop in September to review options and potential impacts to treatment plants.

At 9:30 a.m. Vice-Chair Johnson announced the meeting would go into closed session.

Mr. Hentschke informed the Committee that a closed session would not be needed for the real property negotiations item IV.1, but would need the closed session to discuss litigation items IV.2 and IV.3.

IV. CLOSED SESSION

1. CLOSED SESSION:
Conference with Real Property Negotiator
Government Code §54956.8
Property: City of San Diego Mission Trails Pipeline, Tunnel, and Vent Demolition Project, portions of APN’s 371-010-24; 371-031-05; 373-030-29; 373-040-12, 19; 373-483-44; 373-485-33; 373-520-06; 373-521-27, 28
Agency Negotiators: Daniel Hentschke, William Rose, William Busch,
Mike Flanagan
Negotiating Parties: City of San Diego
Under Negotiation: Price and terms of acquisition

2. CLOSED SESSION:
Conference with Legal Counsel – Existing Litigation
Government Code §54956.9(a)
Name of Case: Hartford v. Archer Western/San Diego County
Water Authority: Moreno Lakeside Pipeline; SDSC Case No. GIN054689

3. CLOSED SESSION:
Conference with Legal Counsel – Potential Litigation
Government Code §54956.9(b) – One Case

The Committee reconvened to full session at 9:50 a.m. Mr. Hentschke announced that the committee action on the matter of Hartford v. SDCWA was not reportable pursuant to the provisions of the Brown Act, and that no action was taken on the other closed session matters.

V. ADJOURNMENT

There being no further business to come before the Engineering and Operations Committee, Vice-Chair Johnson adjourned the meeting at 9:52 a.m.


WATER PLANNING COMMITTEE

CALL TO ORDER / ROLL CALL
Chair Lewinger called the meeting to order at 10:00 a.m. Committee members present were Vice Chairs Muir and Saunders, Directors Arant, Barrett, Bowersox, Lewis, Martin, McMillan, Steiner and Watton. Committee member absent were Directors Dailey, Linden, Parker and Watton. Also present were Directors Bond, Brammell, Craver, Hogan, Johnson, Knutson, Morrison, Petty, Pocklington, Price, Smith, Thompson, Tu, H. Williams, K. 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 Managers Belock and Lanspery, Deputy Assistant General Manager Cushman, Director of Water Resources Weinberg, Water Resources Managers Purcell and Yamada, and Senior Water Resources Specialist Lopez.

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 Lewinger stated that the draft EIR/EIS for the Carryover Storage Project was being released for public review Friday, August 24, 2007. Copies of the CD would be mailed to each Board member. He also stated that two Public hearings would be held to receive public comments – one in Valley Center, October 4, and one in Lakeside October 8. Chair Lewinger reminded the committee that a quorum was needed to conduct the required public hearings and asked volunteers to commit to one or both dates.

Chair Lewinger informed the committee that California Department of Water Resources would be holding a Drought Workshop on October 11, 2007, from 9:30 – 3:00 p.m. at the Water Authority. DWR had prepared a draft Urban Drought Guidebook and it would be available to workshop participants. Dennis Majors from MWD would present to the Board plans for the Delta Improvements that would address the federal court case on Delta Smelt.

DIRECTORS’ COMMENTS
There were no Director's comments.

I. CONSENT CALENDAR

1. Amend a professional services contract with Harvey Consulting Group, LLC, for Colorado River Water Transfer/Quantification Settlement Agreement Program Environmental Support Services.

Staff recommendation: Authorize General Manager to execute an amendment to the professional services contract with Harvey Consulting Group, LLC, (HCG) for $100,000, to provide environmental support services in an amount not to exceed $746,040, and extend the contract date by 24 months.

2. Authorize General Manager to enter into a Joint Powers Agreement with the California Conservation Corps in an amount not-to-exceed $938,000, and a term of three years for as- needed environmental conservation work.

Staff recommendation: Authorize the General Manager to execute a Joint Powers Agreement with the California Conservation Corps in an amount not-to-exceed $938,000, and a term of three years for as- needed environmental conservation work.

Director Martin moved, Director Barrett seconded, and the motion passed unanimously to approve the consent calendar.

II. ACTION/DISCUSSION

1. Drought Management Plan
1-A Drought Management Plan report

Mr. Weinberg summarized the current developments, the 2007 supply demand outlook, MWD WSDM supplies, and the Water Authority supply requirement for calendar year 2007. Mr. Weinberg stated that staff was working with MWD staff to modify SSOA provisions in light of current conditions. He then summarized the MWD Shortage Allocation Plan and water transfer activities.

2-B Report on potential reductions to Interim Agriculture Water Program customers

Mr. Yamada presented to the board a brief history of MWD’s Agricultural programs. He summarized the IAWP programs and referred to the rapid cutbacks during the 1987-1992 drought, and that MWD has entered WSDM Shortage Stage 5. Mr. Yamada reviewed the status of potential 2008 IAWP reductions, MWD IAWP reduction guidelines key provisions, regional implementation of IAWP reduction next steps.

2. Award a Professional Services Contract to Camp Dresser & McKee, Inc., for the San Diego Regional Concentrate Conveyance System Feasibility Study for a not-to-exceed amount of $500,000, for a maximum of 18-months.

Staff recommendation: Award a Professional Services Contract to Camp Dresser & McKee, Inc., for a detailed feasibility study of a regional concentrate conveyance system located in south San Diego County, for a not-to-exceed amount of $500,000 and for a maximum term of 18 months.

Mr. Lopez presented to the Board an overview of the Regional Concentrate Conveyance System Feasibility Study.

Director Steiner moved, Director Saunders seconded, and the motion passed unanimously to approve a professional services contract to Camp Dresser & McKee, Inc.

III. INFORMATION

1. Water Resources report.

The Water Resources Report was received and filed.

IV. ADJOURNMENT

There being no further business to come before the Water Planning Committee, Chair Lewinger adjourned the meeting at 10:55 a.m.


LEGISLATION, CONSERVATION AND OUTREACH COMMITTEE

CALL TO ORDER/ROLL CALL
Chair Tu called the Legislation, Conservation and Outreach Committee to order at 11:01 a.m. Committee members present were Chair Tu, Vice Chairs Morrison and H. Williams and Directors Arant, Bond, Craver, Hilliker, Muir, Watton, K. Williams, and Wornham. Committee members absent were Directors Croucher, Dailey, and Quist. Also present were Directors Barrett, Bowersox, Hogan, Johnson, Knutson, Lewinger, Lewis, Linden, Martin, McMillan, Petty, Pocklington, Price, Smith, Steiner, and Thompson. At the 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 Managers Lanspery and Belock, Assistant General Manager Cushman, Acting Director of Public Affairs Foster, and Public Affairs Supervisor Nenow.

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 the Ninth Annual Paths to Partnerships event was scheduled for September 20 at the Sheraton Harbor Island, San Diego. She advised the board should contact Emily Yanushka for any questions.

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

I. CONSENT CALENDAR

There was no Consent Calendar.

II. ACTION/DISCUSSION

1. Legislative issues.
1-A Report by Carpi and Clay.

Legislative Advocate B. Clay reported on issues in Sacramento and Legislative Advocate K. Carpi reported on issues in Washington, D. C.

1-B Adopt position of Oppose, unless amended, on AB 1489 (Huffman).

Staff recommendation: Adopt position of Oppose, unless amended, on SB 1489 (Huffman).

Director Wornham moved, Director H. Williams seconded, and the motion passed unanimously.

1-C Adopt position of Support on AB 1683 (Wolk).

Staff recommendation: Adopt position of Support on AB 1683 (Wolk).

Director Hilliker moved, Director Muir seconded, and the motion carried unanimously.

1-D Adopt position of Support, if amended, on SB 1002 (Perata).

Staff recommendation: Adopt position of Support, if amended, on
SB 1002 (Perata).

Director Wornham moved, Director Morrison seconded, and the motion passed. Director Hilliker voted no, but later changed his vote to yes.

2. Status of proposed fluoridation of imported potable water supplies from
the Metropolitan Water District of Southern California.

Public Affairs Supervisor Nenow made a presentation on fluoridation, including California law mandating fluoridation; funding source/cost; support, benefits and history; fluoridation schedule; implementation; public outreach program; MWD/Water Authority planning meetings; outreach objectives/materials; and summary. Dr. David Nelson, Consultant to the Office of Oral Health, California Department of Public Health, made a presentation, including dental decay in California; additional facts; Metropolitan’s fluoride activities; and other facts.

Marilyn C. Jacobson of La Mesa, CA 91942, California Dental Hygienist Society, stated she supported fluoridation of the county water supply.

Gayle Duke of San Diego, CA 92120, Dental Hygienist, consultant for the Children’s Medical Center, stated the number one referral for children is dental care.

Susan Lovelace of San Diego, CA 92119, Board of Directors, National Health Foundation, supported community water fluoridation.

Marjorie Stocks, California Dental Association, 1214 K Street, Sacramento, CA, supported water fluoridation.

Dr. Barbara Kabes, President of the San Diego County Dental Society, stated she supported water fluoridation.

3. Authorize the General Manager to execute an agreement between the
San Diego County Water Authority and the United States Bureau of
Reclamation for the Smart Landscape Grant Program.

Staff recommendation: Authorize the General Manager to sign an agreement and other required documents with the United States Bureau of Reclamation to accept grant funds for implementation of the Smart Landscape Grant Program.

Director Muir moved, Director Morrison seconded, and the motion carried unanimously.

III. INFORMATION

Drought Management Plan communications strategy update.

Acting Director of Public Affairs Foster provided a presentation, including drought management communications; DMP communication activity – other 20-Gallon Challenge actions, community outreach with agencies and cities, other organizations, and ‘20gallonchallenge.com’ website.

The following items were received and filed:

1. Water Conservation Garden report.

3. Status report on legislation and legislative positions.

4. Outreach activities for the month of July.

IV. ADJOURNMENT

There being no further business to come before the Legislation, Conservation and Outreach Committee, Chair Tu adjourned the meeting at 12:11 p.m.


IMPORTED WATER COMMITTEE

CALL TO ORDER / ROLL CALL
Vice Chair Knutson called the Imported Water Committee to order at 1:03 p.m. Committee members present were Directors Brammell, Craver, Lewinger, Linden, Martin, McMillan, Price, Steiner, and Williams. Directors Croucher, Ferguson, Lizzul, and Parker were absent. Also present were Directors Arant, Barrett, Bond, Bowersox, Hilliker, Hogan, Johnson, Lewis, Muir, Petty, Pocklington, Smith, Thompson, 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 Managers Belock and Lanspery, Assistant General Manager Cushman, MWD Program Director Hess, Colorado River Program Manager Razak, 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
Vice Chair Knutson discussed Judge Wanger’s on-going hearing on the delta smelt, and said that a ruling was expected shortly after the hearing concludes. He said that MWD and the State Water Contractors were studying approaches to remedy the Delta, and that Governor Schwarzenegger and Senator Feinstein would meet next week to hear presentations by top California water experts on fixing the Delta.

DIRECTORS’ COMMENTS
There were no Director's comments.

I. CONSENT CALENDAR

1. Amend a professional services contract with R.W. Beck, Inc. to support the All American Canal Lining Project.

Staff recommendation: Approve amendment one to the professional services contract with R.W. Beck, Inc. dated August 23, 2005 for project management, engineering support, and construction for the All American and Coachella Canal Lining Projects through June 2010, increasing the contract to a total not-to-exceed amount of $4,200,000.

Director Steiner made a motion, Director Martin seconded, and the motion passed unanimously to authorize the staff recommendation.

II. ACTION/DISCUSSION

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

The delegates did not have any additional comments beyond the written report.

2. Colorado River Programs.
2-A Colorado River report.

Director Knutson discussed current water supply conditions on the Colorado River, the draft EIS for shortage guidelines and reservoir operating rules, and stated the Department of Interior announced a renewed effort for the U.S. and Mexico to collaborate on Colorado River issues.

2-B Colorado River Programs Status report.

Ms. Razak gave a brief update on current activities of the implementation of the QSA projects.

3. Bay Delta.
3-A Presentation by Dennis Majors, Metropolitan Water District of Southern California, on near -, mid- and long-term Delta Improvements.

Mr. Majors gave a presentation on the near-, mid- and long-term measures that could be taken in the Delta to improve water supply reliability. He discussed the likely causes of the smelt decline and possible actions that would insulate the pumping operations from the fish. Examples of near term actions include creating habitats and stockpiling materials in case of a levee break. Mid-term actions for the Delta’s reliability were to implement an Eco-crescent/Middle River corridor that would block off certain channels creating a fresh water pathway that keeps the smelt away from the pumps; and to build an isolated facility and implement the Bay Delta Conservation Plan. He reviewed several options for long-term reliability that include variations of implementing a middle river corridor combined with an isolated facility and a conveyance canal, and compared the alternatives for their reliability. Mr. Majors also reviewed proposed delivery reductions for the State Water Project.

Following Mr. Major’s presentation, Directors asked questions and made comments.

3-B Quarterly Bay-Delta report.

This information item was noted and filed.

III. INFORMATION

The following item was noted and filed:

1. Metropolitan Water District Program report.

The committee went in to closed session at 2:05 p.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 2:21 p.m. Mr. Hentschke stated that the committee gave direction on the item discussed, which was not reportable at this time.

V. ADJOURNMENT
There being no further business to come before the Imported Water Committee, Chair Croucher adjourned the meeting at 2:21 p.m.


ADMINISTRATIVE AND FINANCE COMMITTEE MEETING

CALL TO ORDER / ROLL CALL
Chair Wornham called the Administrative and Finance Committee meeting to order at 2:30 p.m. Committee members present were Chair Wornham, Vice Chairs Hogan and Price, Directors Bond, Hilliker, Johnson, Lewis, Petty, Pocklington, Quist, Smith, Thompson and H. Williams. Committee member absent was Director Saunders. Also present were Directors Arant, Barrett, Bowersox, Brammell, Craver, Knutson, Lewinger, Linden, Martin, McMillan, Steiner and K. Williams. 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 Managers Belock and Lanspery, Assistant General Manager Cushman and Director of Finance/Treasurer Brust.

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 Wornham asked Ms. Brust if she would give a brief report on the current Water Authority investment portfolio in lieu of the recent actions by the Federal Reserve Board. Ms. Brust gave a brief report on the investment portfolio. She stated that 90% of the Water Authority portfolio is invested in AAA-related securities and there are no sub-prime or asset-backed mortgages in the portfolio.

DIRECTORS’ COMMENTS
There were no comments by Directors.

I. CONSENT CALENDAR

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

2. Approve ordinance amending Chapters 2.12 and 2.16 of the Administrative Code relating to departments and personnel to implement the adopted budget.

Staff recommendation: Adopt Ordinance No. 2007-____, an ordinance of the Board of Directors of the San Diego County Water Authority amending chapters 2.12 and 2.16 of the Administrative Code relating to departments and personnel.

3. Adopt a resolution establishing amount due from the City of San Diego for the In-Lieu Charge as a condition of providing water service for fiscal year 2007-2008.

Staff recommendation: Adopt Resolution No. 2007-____ establishing an amount due of $1,694,568.78 from the city of San Diego for the In-Lieu charge for fiscal year 2007-2008.

4. Approval of an additional transfer of funds within the Operating Budget for Fiscal Years 2006 and 2007.

Staff recommendation: Approve the additional transfer of funds in the amount of $150,000 within the Operating Budget for Fiscal Years 2006 and 2007 from the Imported Water Department to Operations and Maintenance.

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

II. ACTION/DISCUSSION

There were no Action/Discussion items.

III. INFORMATION

1. Presentation on impacts of extraordinary conservation on revenues and rates.

Ms. Brust gave a brief presentation on the impacts of extraordinary conservation on revenues and rates and answered questions from the Board.

The following items were received and filed:

2. Controller’s report on monthly financial statements.

3. Report on Water Standby Availability Charge deferrals for fiscal year 2007-2008.

4. Board Calendar.

Chair Wornham stated that there is a Special Board meeting scheduled for September 6 at 1:30 p.m. to discuss the fiscal year ended June 30, 2007 audit plan and auditor’s scope of work and to hear an action item to allow staff to refund outstanding bonds based on favorable market conditions.

IV. ADJOURNMENT

There being no further business to come before the Administrative and Finance Committee, Chair Wornham adjourned the meeting at 2:48 p.m.


FORMAL BOARD OF DIRECTORS’ MEETING OF AUGUST 23, 2007

1. CALL TO ORDER Chair Steiner called the Formal Board of Directors’
meeting to order at 3:00 p.m.

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

3. ROLL CALL, DETERMINATION OF QUORUM

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

3-A Report on proxies received. Director Bowersox was the proxy for Director Dailey, Director Muir was the proxy for Directors Croucher and Watton.

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

5. APPROVAL OF MINUTES Director Craver moved, Director Lewinger
seconded and the motion carried for a total of 96.82% of the vote to approve the
minutes of the Formal Board of Directors’ meeting of July 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

8. REPORTS BY CHAIRS:

8-A Chair’s Report – Chair Steiner reviewed her meetings with the Imperial Irrigation District, the Agricultural Foundation, and Los Angeles Department of Water and Power.

8-B Strategic Plan Ad Hoc Committee update – Director Bowersox announced there would be a Special Board meeting on October 11, 2007. He stated six responses had been received from the request for proposal the Committee had sent out.

8-C Report by Committee Chairs

Engineering and Operations Committee. Director Johnson announced
all items had passed.

Water Planning Committee. Director Lewinger stated all items had passed.

Legislation, Conservation and Outreach Committee. Chair Steiner announced all items had passed.

Administrative and Finance Committee. Director Wornham announced all items had passed.

Imported Water Committee. Director Knutson reviewed the Committee meeting.

9. CONSENT CALENDAR:

Director Barrett moved, Director Muir seconded, and the motion carried at 96.82 % of the vote, to approve the Consent Calendar. Abstentions and those voting no were listed under the item.

11. CLOSED SESSIONS:

General Counsel Hentschke took the Board into Closed Session for items 11-B, 11-E, and 11-F.

The Board came out of Closed Session at 3:40 p.m. Chair Steiner announced the General Manager determines the bonus system for the Deputy General Managers and Assistant General Manager.

10. ACTION / DISCUSSION:

12. SPECIAL REPORTS:

12-A GENERAL MANAGER’S REPORT – Ms . Stapleton announced Frank Belock had begun as Deputy General Manager for the Engineering Department, Operations and Maintenance, and Right of Way Departments. Paul Lanspery will handle Water Rescources, Finance, Human Resources, and Administrative Services. Dennis Cushman will oversee Public Affairs. She stated she will send out an updated organizational chart.

12-B GENERAL COUNSEL’S REPORT – Mr. Hentschke announced the Board authorized the General Counsel or Special Counsel to accept the mediator's proposal to settle the matter of Hartford v. SDCWA, et al., and related cross-actions and to execute all settlement documents reasonably necessary to accomplish the settlement, and approve the transfer of $350,000 from the Lake Hodges to Olivenhain Pipeline Project budget to the Moreno-Lakeside Pipeline Project budget.

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

12-D SANDAG REPORT – Director Dailey was not present but she had informed Chair Steiner that the SANDAG meetings were not held this month.

SANDAG Subcommittee: Borders/Regional Planning Committee – Director Williams announced the Borders Committee did not meet. The Regional Planning Committee was proceeding with transportation and economic development.

12-E AB 1234 COMPLIANCE REPORTS – No reports were given.

13. OTHER COMMUNICATIONS: None.

14. ADJOURNMENT There being no further business to come before the Board, Chair Steiner adjourned the meeting at 3:45 p.m.

__________________________________
Fern M. Steiner
Chair

_______________________________
Mark W. Watton
Secretary

_______________________________
Doria F. Lore, Clerk of the Board

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