MINUTES OF THE FORMAL BOARD OF DIRECTORS' MEETING

December 6, 2007

ENGINEERING AND OPERATIONS COMMITTEE MEETING

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

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 announced the award for International Roller Compacted Concrete Milestone Projects to the San Diego County Water Authority for Olivenhain Dam from the International Commission on Large Dams.

DIRECTORS’ COMMENTS
There were no Director's comments.

I. CONSENT CALENDAR

1. Construction contract for the San Vicente Reservoir Interconnect Pipeline project.

Staff recommendation: Award a contract to Erreca's Inc., for $8,061,605 for construction of the San Vicente Reservoir Interconnect Pipeline.

2. Professional services contract with Pressure Pipe Inspection Company for remote field eddy current inspection.

Staff recommendation: Award a professional services contract to Pressure Pipe Inspection Company for an amount not to exceed $630,000 to provide remote field eddy current inspection for approximately 40.6 miles of prestressed concrete cylinder pipe during the Aqueduct Protection Program's fiscal years 2008 and 2009 pipeline shutdowns.

3. Professional services contract with PURE Technologies US, Inc. for acoustic monitoring services.

Staff recommendation: Award a professional services contract to PURE Technologies US, Inc. for an amount not to exceed $2,350,000 to provide the installation and monitoring of acoustic fiber optic services for the Aqueduct Protection Program for fiscal years 2008 and 2009.

4. Professional services contract for as-needed engineering design support services.

Staff recommendation: Award a professional services contract to Dudek to provide as-needed engineering design support services for the San Vicente Dam Raise, the Pipeline Relining Program, and other CIP projects, for a not-to-exceed amount of $700,000 or for a period of three years, whichever occurs first.

5. Change orders for the San Vicente Pipeline project.

Staff recommendation: Accept change orders 34 and 35 to Shea-Traylor Joint Venture's construction contract for the San Vicente Pipeline project for $200,000; and approve change order 36 for the interim payment of $17,000 for costs associated with the differing site condition in Reach 4 West, and change order 37 for the interim payment for costs associated with the differing site condition in Reach 4 East in the amount of $2,138,000 for a total increase of $8,498,622.

Director Knutson moved, Vice-Chair Johnson seconded and the motion to remove Consent Calendar Item 1 for discussion, and to accept Consent Calendar Items 2 through 5 passed unanimously.

Consent Item 1 Discussion

Discussion of Consent Item 1 proceeded with Project Design Manager Whitaker's presentation of the bid process leading to the award to Erreca's Inc. for construction of the San Vicente Reservoir Interconnect Pipeline. He reported two protests were filed by the bid competitors, but after evaluation of the bid, the protests were determined to be without merit. Mr. Whitaker stated it was verified that Erreca's Inc. and its supplier, Mid America Pipe, were qualified to perform the work per the contract documents.

The following speakers addressed the E&O Committee regarding the bid protest:

1. Mr. Mark Williams, representative of L. H. Woods Construction

2. Mr. Brad Sando, representative of Northwest Pipe Co.

3. Mr. Nate Olney, representative of Erreca's Inc.

The Committee discussed the award and bid protest issues.

Director Smith moved, Director Pocklington seconded, and the motion passed to accept staff's recommendation to award the contract to Erreca's Inc., with Directors Barrett, Petty, and Thompson voting no.

II. ACTION/DISCUSSION

1. Recommended Budget for the Elfin Forest Recreational Reserve.

E&O Committee recommendation:

a. Approve Elfin Forest Recreation Reserve (EFRR) budget increase to a not-to-exceed amount of $ 468,108 for fiscal years 2007 and 2008.

b. Olivenhain Municipal Water District (OMWD) present EFRR annual budget to E&O Committee for approval by March 1st of each year.

c. OMWD draft EFRR strategic plan, defining future levels of service and anticipated costs associated, for E&O Committee review.

d. Direct Water Authority staff to develop draft amendments to the Joint Use of Olivenhain Reservoir Site Agreement relative to service level and costs at EFRR for discussion within OMWD.

Director of O&M Eaton presented background on developing a budget for the Elfin Forest Recreational Reserve.

Director Knutson moved, Director Smith seconded, and the motion to accept the E&O Committee recommendation passed unanimously.

2. Change orders for the Lake Hodges Pump Station contract.

Staff recommendation: Accept changes orders 1 though 7 for a credit of $310,744 and authorize the General Manager to execute Change Order 8 with Archer Western for a not-to-exceed amount of $1.82 million.

Director Barrett moved, Vice Chair Johnson seconded, and the motion to accept the staff recommendation passed unanimously.

3. San Vicente Pumping Facilities project.

3-A Amendment to professional services contract with Black & Veatch Corporation to develop an operations plan for the SanVicente Pumping Facilities project.

Staff recommendation: Accept amendment six in the amount of $104,820 and approve amendment seven for $375,000, to provide a comprehensive San Vicente System operations plan, increasing the contract amount from $7,075,170 to $7,450,170.

Director Barrett moved, Director Thompson seconded, and the motion to accept the staff recommendation passed unanimously.

3-B Change orders for the San Vicente Pumping Facilities project.

Staff recommendation: Accept change orders 3 and 5 through 8 for $354,328, and authorize the General Manager to execute a change order with Kiewit Pacific Co., for shotcrete placement work up to $130,000.

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

III. INFORMATION

1. Presentation of Twin Oaks Valley Water Treatment Plant project update.

Project Manager Suydam reported the Water Treatment Plant construction was on schedule, the systems testing phase had begun, and delivery of treated water by April 2008 was on schedule.

Mr. Hentschke took the Committee into Closed Session at 10:00 a.m.

IV. CLOSED SESSION

1. CLOSED SESSION:
Conference with Legal Counsel - Initiation of Litigation
Government Code §54956.9(c) - One case.

2. CLOSED SESSION:
Conference with Legal Counsel - Potential Litigation
Government Code §54956.9(b) - Traylor/Shea Joint Venture
Reach 4W DSC Certified Claim San Vicente to Second Aqueduct Pipeline.

Public Session was reconvened at 10:20 a.m. General Counsel. Hentschke reported the following action was taken by the Committee:

1. Authorized the General Counsel to retain Daley and Heft, Neal Meyers, as special counsel and to initiate litigation.

2. Authorized the General Counsel to retain Procopio, Cory, Hargreaves and Savitch, Craig Ramseyer, as special counsel regarding the San Vicente Pipeline Project claims.


V. ADJOURNMENT

There being no further business to come before the Engineering and Operations Committee, Chair Ferguson adjourned the meeting at 10:25 a.m.



ADMINISTRATIVE AND FINANCE COMMITTEE

CALL TO ORDER / ROLL CALL
Chair Wornham called the Administrative and Finance Committee meeting to order at 10:34 a.m. Committee members present were Vice Chairs Hogan and Price, Directors Bond*, Hilliker, Johnson, Lewis*, Petty, Pocklington, Saunders, Smith, Thompson, and H. Williams. Committee member absent was Director Quist. Also present were Directors Arant, Barrett, Dailey, Ferguson, Knutson, Lewinger, Linden, Martin, McMillan, Morrison, Parker, Steiner, Watton, 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 Lanspery and Belock, Assistant General Manager Cushman, Acting Director of Finance Sandler, Director of Administrative Services Young, Director of Human Resources Glover, Acting Director of Public Affairs Foster, Risk Manager Homer, Controller Wade, and others.

ADDITIONS TO AGENDA
There were no additions to the agenda.

PUBLIC COMMENT
Jack Hoagland of Rancho California Water District addressed the committee regarding agenda item II, 1-B on Water Authority Business Insurance – Property and Liability. Mr. Hoagland endorsed ACWA-JPIA’s insurance programs.

CHAIR'S REPORT
There was no Chair’s Report.

DIRECTORS’ COMMENTS
There were no Directors’ comments.

*Directors Bond and Lewis arrived at the meeting at 10:35 a.m.

I. CONSENT CALENDAR

1. Treasurer’s report.

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

2. Adopt the Vote Entitlement Resolution for calendar year 2008.

Staff recommendation: Adopt the resolution establishing the vote and representative entitlements of each member agency effective January 1, 2008.

Director Johnson moved, Vice Chair Price seconded, and the motion carried unanimously to approve items 1 and 2 on the consent calendar.

3. Adopt Defined Benefit Pension Plan (Plan) as proposed and agreed through Meet and Confer.

Staff recommendation: Approve defined benefit pension plan in compliance with Board approved Memoranda of Understanding (MOU) and Compensation Plans for FY 2008 and 2010, effective December 10, 2007.

After a brief discussion, Director Bond moved, Director Lewis seconded, and the motion carried unanimously to approve item 3 on the consent calendar.

II. ACTION/DISCUSSION

1. Water Authority Insurance Programs.

1-A Annual report on the status of the Owner Controlled Insurance Program.

1-B Water Authority Business Insurance – Property and Liability

Staff recommendation: Authorize the purchase of property and liability business insurance from the Special Districts Risk Management Authority in the amount of $431,829 and confirm withdrawal from ACWA-JPIA property program and liability program effective April 1, 2008 and October 1, 2008 respectively.

Risk Manager Robert Homer provided a presentation on the status of the Owner Controlled Insurance Program, followed by a presentation on the Water Authority’s property and liability business insurance.

After a lengthy discussion, Director Pocklington moved that the item be continued to the January 24, 2008 Board meeting following a Board workshop to be held before that meeting. Director Petty seconded and the motion carried unanimously.

2. Accept Comprehensive Annual Financial Report for fiscal year ended June 30, 2007.

Staff recommendation: Receive and file the Comprehensive Annual Financial Report for fiscal year ended June 30, 2007.

Controller Wade presented a brief report on the Comprehensive Annual Financial Report for fiscal year ended June 30, 2007.

Vice Chair Price moved, Director Saunders seconded, and the motion carried unanimously.

3. Third Party Portfolio Review and Adopt Annual Statement of Investment Policy and continue to delegate authority to the Treasurer to invest Water Authority funds for calendar year 2008.

Staff recommendation: Adopt the Annual Statement of Investment Policy and continue to delegate authority to the Treasurer to invest Water Authority funds for Calendar Year 2008.

Richard Babbe of PFM Asset Management, LLC provided a brief presentation on the Third Party Review of the Investment Policy.

Director Pocklington moved, Director Price seconded and the motion carried unanimously.

III. INFORMATION

The following items were received and filed:

1. Annual report on fund balances for Fiscal Year 2006-2007 and the 45-
day Operating Fund Policy.

2. Controller’s report on monthly financial statements.

3. Board calendar.


IV. ADJOURNMENT

There being no further business to come before the Administrative and Finance Committee, Chair Wornham adjourned the meeting at 11:47 a.m.



WATER PLANNING COMMITTEE

CALL TO ORDER/ROLL CALL
Chair Lewinger called the meeting to order at 11:50 a.m. Committee members present were Vice Chairs Muir and Saunders, Directors Arant, Barrett, Dailey, Lewis, Linden, Martin, McMillan, Steiner and Watton. Committee member absent were Directors Bowersox and Parker. Also present were Directors Bond, Brammell, Ferguson, Hilliker, Hogan, Lizzul, Morrison, Petty, Pocklington, Smith, Thompson, 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, Mr. Gordon Hess, Principal Water Resources Specialists Friehauf and Stadler, and Senior Water Resource Specialist Espe.

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 thanked the Committee for its hard work for the first year of its two-year term. Chair Lewinger stated, that if the Desalination update was not heard due to time constraints, that the Carlsbad Desalination project had two significant hearing dates, one at the State Lands Commission and one at the Coastal Commission. Regarding the State Lands, although extensive testimony was given, including testimony by Chair Steiner, several Board members, and member agency General managers, a decision was postponed until early next year. Interestingly, the key outstanding items had to do with carbon emissions and the development of a climate action plan by Poseidon. The coastal Commission voted 9-3 to approve the Carlsbad Desalination project subject to several conditions that included approval of marine life mitigation and an energy minimization green house gas emissions reduction plan. Chair Lewinger noted that it was significant that the Commission approved the project by such a wide margin and that the final decision is over mitigation and not whether the project can be done. This is a real indication that seawater desalination will move forward in San Diego County and hopefully elsewhere in the state and staff would tell us more either today or in January.

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

I. CONSENT CALENDAR

1. Approve amendment to professional services contract with Dudek & Associates, Inc., for an amount of $246,000 to provide Wetlands Mitigation Site Planning and Design support services.

Staff recommendation: Authorize execution of amendment No. 1 to professional services contract with Dudek & Associates, Inc., for wetlands mitigation site planning and design support services in the amount of $246,000, for a total contract amount not-to-exceed $1,230,000.

2. Amend the professional services contract with Jacobs Engineering for Capital Improvement Program project management and peak support services.

Staff recommendation: Authorize the General Manager to execute the third amendment to the professional services contract with Jacobs Engineering for CIP project management and peak support services to provide facility-planning services for an amount not-to-exceed $700,000 with duration of one-and-one-half years or not to exceed June 30, 2009.

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

II. ACTION/DISCUSSION

Chair Lewinger took action item 2 Pipeline 6 update out of order.

2. Pipeline 6 update.

2-A Award a Professional Services Contract to MWH Americas, Inc., to prepare the San Diego Pipeline 6 Feasibility and Alignment Study, for a not-to-exceed amount of $1.35 million.

Staff recommendation: Approve the professional services contract with MWH to prepare a feasibility and alignment study covering the southern segment of San Diego Pipeline 6, for a not-to-exceed amount of $1.35 million.

2-B Approve a Cooperative Agreement with the Metropolitan Water District of Southern California to conduct environmental studies for San Diego Pipeline 6, for a not-to-exceed amount of $195,000.

Staff recommendation: Approve the cooperative Agreement with MWD to conduct environmental studies covering the southern segment of San Diego Pipeline 6, for a not-to- exceed amount of $195,000.

Director Arant moved, Director Saunders seconded, and the motion passed unanimously to approve Item 2-A Professional Services Contract to MWH Americas, Inc., and Item 2-B Cooperative Agreement with the Metropolitan Water District of Southern California to conduct environmental studies for San Diego Pipeline 6.

1. Drought Management Plan

1-A Drought Management Plan Implementation report.

Mr. Weinberg presented a brief report on implementation of the DMP including a monitoring report on water supply and demand conditions. Topics that were reviewed were MWD’s shortage allocation methodology, MWD’s and the Water Authority’s three-year supply planning scenarios, recommended declaration of DMP Stage 2, and status of water transfers.

1-C Declare Implementation of Stage 2, Supply Enhancement, of the Water Authority’s Drought Management Plan.

Staff recommendation: Declare implementation of Stage 2, Supply Enhancement, of the Water Authority’s Drought Management Plan.

Director Muir moved, Director Arant seconded, and the motion passed unanimously to approve Item 1-C, Declare Implementation of Stage 2, Supply Enhancement, of the Water Authority’s Drought Management Plan.

1-B Adopt resolution approving the Regional Interim Agricultural Water Program Reduction Plan.

Staff recommendation: Adopt Resolution No. 2007-___Approving the Regional IAWP Reduction Plan.

Director Muir moved, Director Steiner seconded, and the motion passed unanimously to approve the Regional IAWP Reduction Plan.

1-D Update on water transfer negotiations with Butte Water District and others to provide short-term water supplies for 2008.

Mr. Hess gave an update on water transfer negotiations with Butte Water District and others to provide short-term water supplies for 2008.

Chair Lewinger stated that he would be voting no on the following items based on his previous position stated, that his Board does not support annexations of new territory if there is not enough water to meet the needs of the existing territory with the Water Authority area. However, he offered a proposal that would reverse his position if adopted in the future. He then read his proposal to the Committee and asked for their support.

“To direct staff to meet with the Member Agency General Managers to consider a concept of a new regional water supply charge to provide a financial mechanism for growth to pay for implementing conservation, reclamation, or new supply development that would offset 100 percent of the additional demand they create on County Water Authority supplies. Staff working with General Managers, are to evaluate the idea and return with recommendations to this Committee and ultimately to the Board.”

Chair Lewinger asked for the consensus of the Committee.

Chair Lewinger made a motion, Director Muir seconded to request the Member Agency General Managers to work with staff to analyze his proposal and come back to the Committee with recommendations, and ultimately present those recommendations to the Board.

Director Lewis asked that a workshop be organized for this proposal.

The motion was amended by Director Lewis to include a Water Planning Committee Workshop.

Directors Arant, Lewis, Martin, Muir, McMillan, Steiner, and Saunders, voted yes. Directors Barrett, Dailey, Linden, Watton, voted no to have Member Agency General Managers and staff analyze Chair Lewingers’ proposal and come back to the Water Planning Committee at a workshop with recommendations. The motion passed 7 – 4.

3. Adopt a Resolution approving Helix Water District’s proposed
Citrus Heights annexation.

Staff recommendation: Adopt Resolution No. 2007-__ ,setting final terms and conditions and approving the concurrent annexation of Helix Water District’s proposed Citrus Heights annexation.

Ms. Friehauf gave a brief background report on the Citrus Heights Annexation.

Director McMillian moved, Director Dailey seconded and the motion to approve the proposed Citrus Heights annexation passed.

4. Adopt a Resolution granting conditional approval of the Lakeside Water District’s proposed Erreca Annexation, fixing terms and conditions, and requesting Metropolitan Water District of Southern California to grant conditional approval and give notice of intent to impose water standby charges.

Staff recommendation: Adopt Resolution No. 2007-__ granting conditional approval of the Lakeside Water District’s Erreca annexation, fixing terms and conditions, and requesting Metropolitan to grant conditional approval and give notice of intent to impose water standby charges.

Ms. Friehauf gave a brief report on the proposed Erreca Annexation, fixing terms and conditions, and requesting Metropolitan Water District of Southern California to grant conditional approval and give notice of intent to impose water standby charges.

Director Steiner moved, Director Arant seconded and the motion to approve the conditional granting of the proposed Erreca annexation passed.

Chair Lewinger announced that Item 1-E Closed Session would be addressed in the afternoon.

III. INFORMATION

1. Status update on the Carlsbad Desalination Project and the 2006 Desalination Action Plan.

The status update on Desalination will be presented at the January 2008 Board meeting.

2. Water Resources report.

The Water Resources Report was received and filed.

Chair Lewinger announced at 12:30 p.m. the closed session item would be
addressed later in the afternoon. Following the Imported Water Committee meeting Mr. Hentschke took the Board into Closed Session at 3:15 p.m.

1-A CLOSED SESSION:

Conference with Real Property Negotiator

Government Code §54956.8

Property:

a. Semitropic-Rosamond Water Bank Authority –groundwater basin storage rights and water;

b. Joint Water Districts (Butte Water District, Richvale Irrigation District, Biggs-West Gridley Water District, and Sutter Extension Water District) -- water

c. Western Canal Water District – water

Agency Negotiators: Daniel Hentschke, Dennis Cushman, Gordon Hess, Debbie Espe
Negotiating Parties:

a. Designated representatives of Semitropic-Rosamond Water Bank Authority;

b. Designated representatives of Joint Water Districts;

c. Designated representatives of Western Canal Water District

Under Negotiation: Price and terms of acquisition

The Board came out of Closed Session at 3:45 p.m. Mr. Hentschke reported the Board authorized staff to negotiate and execute Spot Water Transfers agreement (s) pursuant to discussion given in closed session and authorized staff to negotiate a long-term participation agreement in Semitropic-Rosamond Groundwater Bank within the parameters discussed in closed session, and have the item brought back to the Board for approval.


IV. ADJOURNMENT

There being no further business to come before the Water Planning Committee, Chair Lewinger adjourned the meeting at 3:48 p.m.



LEGISLATION, CONSERVATION AND OUTREACH COMMITTEE

CALL TO ORDER / ROLL CALL
Chair Tu called the Legislation, Conservation and Outreach Committee to order at 1:23 p.m. Committee members present were Chair Tu, Vice Chairs Morrison and H. Williams and Directors Arant, Bond, Craver, Croucher, Dailey, Hilliker, Muir, Quist, Watton, K. Williams, and Wornham. There were no Committee members absent. Also present were Directors Barrett, Brammell, Ferguson, Hogan, Knutson, Lewinger, Lewis, Linden, Lizzul, Martin, McMillan, Morrison, Parker, Petty, Pocklington, Price, Smith, Steiner, and Thompson. 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 Managers Lanspery and Belock, Assistant General Manager Cushman, and Acting Director of Public Affairs Foster.

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 provided an update on fluoridation. She stated that the Metropolitan Water District of Southern California started fluoridating the Skinner Treatment Plant on December 3, 2007. Chair Tu requested any issues be brought to staff.

Chair Tu announced that Public Affairs staff and consultants received two awards from the Public Relations Society of America. A Merit Award for outreach for the San Vicente Dam Raise and First Place for a history video series.

DIRECTORS’ COMMENTS
There were no Director's comments.

I. CONSENT CALENDAR

1. Amend the agreement with California Strategies for government relations services in an amount of $210,000 for a 12-month period ending December 31, 2008.

Staff recommendation: Extend the agreement for government relations services with California Strategies, LLC, for a period not-to-exceed an additional 12 months at a cost of $17,500 per month.

2. Approve Water Authority Participation in Metropolitan’s Regional Residential Incentive Program.

Staff recommendation: Approve participation in Metropolitan’s Regional Residential Incentive Program.

Director Wornham moved, Director H. Williams seconded, and the motion passed unanimously to approve 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 and Legislative Advocate K. Carpi reported on issues in Washington, D.C.

1-B Adopt proposed 2008 Legislative Policy Guidelines.

Staff recommendation: Adopt proposed 2008 legislative policy guidelines.

Director Morrison moved, Director Craver seconded, and the motion passed unanimously.

2. Amend operating and labor budgets for the Public Affairs Department to support the Drought Management Plan Phase Two Communications Strategy in calendar year 2008.

Staff recommendation: Amend operating and labor budgets for Public Affairs Department by an increase of $206,600 to support the Drought Management Plan Phase Two Communications Strategy in calendar year 2008.

Acting Director of Public Affairs Foster provided a presentation, including Phase One Communications, Phase Two Communications Criteria, Phase Two Communications, Initial Phase Two Budget, Secondary Phase Two Action, and Timeline.

Director Wornham moved, Director Muir seconded. Director Steiner stated that the Water Authority needed to reach young people and spread the word about the need to save water now. Acting Director of Public Affairs Foster stated that the program had built in flexibility to adapt to changing conditions and cutbacks. Chair Tu called for the question and the motion passed unanimously.

3. Consider providing San Diego County Water Authority funding for Association of California Water Agencies (ACWA) “California’s Water: A Crisis We Can’t Ignore” public education program.

Staff recommendation: Do not provide Water Authority funding to ACWA public education program at this time.

Director Muir moved, Director Wornham seconded, and the motion passed. Director Arant voted nay.

III. INFORMATION

1. Presentation on 2007 Water Conservation Summit.

Helix Water District General Manager and Co-Chair of the Water Conservation Summit Mark Weston provided a presentation, including the day’s events, attendance, diversity of participants, preliminary feedback, where do we go now, and what is coming soon. Chair Tu thanked Messrs. Mark Uhrhammer and Mark Weston, as well as staff, for accomplishing this task. Board Chair Steiner and Director Tu presented plaques to Messrs. Uhrhammer and Weston in recognition of their efforts in this event.

2. Water Conservation Garden report.

Executive Director Eberhardt stated that the fall festival and the opening of the irrigation exhibit were moved due to the fires. She announced that the garden received the Rainbird Water Conservation Award. Chair Tu stated she represented the Water Authority at the Friends of the Garden ceremony and the Water Authority received a plaque for participation.

The following items were received and filed:

3. SCOOP quarterly report.

4. Conservation outreach update.

5. Government relations update.

6. Outreach activities for the months of October and November 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 2:20 p.m.



IMPORTED WATER COMMITTEE MEETING

CALL TO ORDER / ROLL CALL
Chair Croucher called the Imported Water Committee to order at 2:27 p.m. Committee members present were Directors Brammell, Craver, Ferguson, Knutson, Lewinger, Linden, Lizzul, Martin, McMillan, Parker, Price, Steiner, and Williams. Also present were Directors Arant, Barrett, Bond, Dailey, Hilliker, Hogan, Johnson, Lewis, Muir, Petty, Pocklington, Quist, Saunders, Smith, Thompson, Tu, Watton, Williams, and Williams. 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, Imported Water Program Director Hess, Colorado River Program Director Razak, and others.

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 Croucher stated that DWR recently announced that the 2008 State Water Project supply allocation was 25 percent of the state water contractors requested entitlements, compared with 60 percent in 2007. He said that the judge’s ruling on the pumping restrictions on the Delta due to the delta smelt had not yet been announced but was expected soon.

DIRECTORS’ COMMENTS
There were no comments by Directors.

I. CONSENT CALENDAR

There were no items on the consent calendar.

II. ACTION/DISCUSSION

1. MWD Issues and Activities update.

1-A MWD Delegates report.

The Delegates did not have any comments.

1-B MWD’s Long Range Finance Plan update.

Amy Chen gave a presentation and reviewed key elements of the staff memo regarding MWD’s long range finance plan. Following the presentation, Directors asked questions and made comments.

2. Colorado River Programs.

2-A Colorado River Board Representative’s report.

Director Knutson stated that the technical committees of the Seven Basin States had been working for several months to finalize the details of the agreements required to implement the Bureau of Reclamation’s guidelines for Lower Basin shortages and coordinated operations of Lakes Powell and Mead. He stated that the Record of Decision on the Bureau’s final EIS would be signed by the Secretary of the Interior on December 13.

2-B Reservation of Rights for future Water Authority participation in Intentionally Created Surplus (ICS) element of the Colorado River Interim Guidelines for Lower Basin Shortages and Coordinated Operations for Lake Powell and Lake Mead.

Staff recommendation: Authorize the General Manager to enter into one or more agreements that will (1) reserve the Water Authority’s rights to create, store, and use intentionally created surplus on the Colorado River as part of the U.S. Bureau of Reclamation’s Colorado River Interim Guidelines for Lower Basin Shortages and Coordinated Operations for Lake Powell and Lake Mead; and (2) allow for the Water Authority and MWD to exercise best efforts to develop and implement a sub-account agreement to allow use of eligible Water Authority supplies for ICS.

Jim Taylor presented provisions of a Memorandum of Agreement between the Water Authority and MWD, and a revised staff recommendation:

1. Parties will exercise best efforts to develop a subaccount agreement to create ICS from Water Authority eligible programs and share the benefit.

2. MWD shall include Water Authority eligible programs in the Lower Basin forbearance agreement.

3. Until a subaccount agreement is reached, or July 1, 2015, neither party shall use water authority conserved water for ICS without the other’s consent.

4. If the time period expires without a subaccount agreement, the General Managers will meet and confer, and present the matter to their Boards of Directors.

5. Except as provided in this MOA, neither party waives any rights it may have to create ICS from Water Authority conserved water.

Staff recommendation: Authorize the General Manager to execute the Memorandum of Agreement between the Water Authority and MWD regarding Intentionally Created Surplus.

Director Lewinger made a motion, Director Knutson seconded, and the revised staff recommendation was approved unanimously.

2-C Agreement with California Department of Fish and Game and Coachella Valley Water District for Implementation of Large Mammal Mitigation for the Coachella Canal Lining Project.

Staff recommendation: Authorize the General Manager to enter into a Memorandum of Agreement to establish responsibilities for mitigation of impacts to large mammals related to the Coachella Canal Lining Project.

At the committee meeting, the following revised staff recommendation was presented and voted on:

Staff recommendation: Authorize the General Manager to enter into a
Memorandum of Agreement to establish responsibilities for mitigation of impacts to large mammals related to the Coachella Canal Lining Project, conditioned on approval of Water Authority/CVWD Settlement Agreement provisions by the Bureau of Reclamation.

Director Ferguson made a motion, Director Steiner seconded, and the revised staff recommendation was approved unanimously.

III. INFORMATION

The following item was noted and filed:

1. Metropolitan Water District Program report.

IV. ADJOURNMENT

There being no further business to come before the Imported Water Committee, Chair Croucher adjourned the meeting at 3:10 p.m.



FORMAL BOARD OF DIRECTORS’ MEETING OF DECEMBER 6, 2007

1. CALL TO ORDER Chair Steiner called the Formal Board of Directors’meeting to order at 3:50 p.m.

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

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

3-A Report on proxies received. None

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

5. APPROVAL OF MINUTES Director Croucher moved, Director Johnson seconded and the motion carried for a total of 97.10% of the vote to approve the minutes of the SCOOP meeting on October 2, 2007, the minutes of the Formal Board of Directors’ meeting of October 25, 2007, and the Special meeting of the Administrative and Finance Committee on November 8, 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-A Government Finance Officers Association – Certificate of Achievement for Excellence in Financial Reporting for fiscal year ending June 30, 2006.

The award was presented by Joseph R. Beachem, Chief Financial Officer, Otay Water District.

7-B Recognition of Tim Bombardier, Employee of the First Quarter.

8. REPORTS BY CHAIRS:

8-A Chair’s Report – Chair Steiner announced she and Ms. Stapleton recently had a meeting with Timothy Brick, Board Chair and Jeffrey Kightlinger, General Manager from Metropolitan Water District and future meetings would be held quarterly. She announced future meetings would be scheduled with Los Angeles Power and Water. She and Director Howard Williams attended the Brawley Cattle Call. She stated important outreach efforts would continue with Imperial County. She wished everyone Happy Holidays and suggested some New Year wishes for normal rain and snow season and conveyance. She stated Director Bowersox had a family emergency. Director Price would provide the Strategic Plan Ad Hoc Committee report. Chair Steiner thanked the Board members and staff for their hard work over the past year.

8-B Strategic Plan Ad Hoc Committee update – Director Bowersox

Director Price announced the committee had made good progress from the October 11, 2007 workshop. He provided a summary of the document. He stated a workshop was scheduled for February 14, 2008.

8-C Report by Committee Chairs

Engineering and Operations Committee. Director Ferguson reviewed the committee meeting.

Administrative and Finance Committee. Director Wornham reviewed the committee meeting and announced the insurance property and liability item had been continued to the January 24, 2008 Board meeting. He announced a workshop would be scheduled before the January 24, 2008 meeting.

Water Planning Committee. Director Lewinger reviewed the committee meeting.

Imported Water Committee. Director Croucher reviewed the committee meeting.

Legislation, Conservation and Outreach Committee. Director Tu reviewed the committee meeting.

9. CONSENT CALENDAR:
Director Ferguson moved, Director Wornham seconded, and the motion carried at 94.10% of the vote, to approve the amended Consent Calendar. Abstentions and those voting no were listed under the item.

10. ACTION/DISCUSSION
There were no items under this category.

11. CLOSED SESSIONS:

General Counsel Hentschke announced there was no need for a closed session.

13. OTHER COMMUNICATIONS

14. ADJOURNMENT There being no further business to come before the Board, Chair Steiner adjourned the meeting at 4:30 p.m.

__________________________________
Fern M. Steiner
Chair

_______________________________
Mark W. Watton
Secretary

_______________________________
Doria F. Lore, Clerk of the Board

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