MINUTES OF THE ADMINISTRATIVE AND FINANCE COMMITTEE MEETING
MARCH 20, 2008
1. CALL TO ORDER
Chair Wornham called the Special Administrative and Finance Committee meeting
to order at 1:32 p.m.
2. ROLL CALL
Committee members present were Chair Wornham, Vice-Chair Price and Directors
Hilliker, Johnson, Lewis, Petty, Pocklington, Smith, Thompson, and H. Williams.
Committee members absent were Vice-Chair Hogan, and Directors Bond, Quist and
Saunders. Also present were Directors Bowersox, Dailey, Lewinger, Linden, Martin,
McMillan, Muir, Steiner. At that time, there was a quorum of the committee.
Staff present was General Manager Stapleton, General Counsel Hentschke, Deputy
General Managers Belock and Lanspery, Acting Director of Finance/Treasurer Sandler,
Financial Services Manager/Treasurer Delin, Also present were John Rhow and
Tim Romer of Goldman Sachs, Richard Morales of Wedbush Morgan, and Stephen Spitz
of Orrick Herrington & Sutcliffe, LLP.
3. PUBLIC COMMENT
There were no members of the public who wished to address the Committee.
4. CHAIR’S REPORT
Chair Wornham stated that this special meeting would cover the Water Authority’s
draft Long-Range Financing Plan, which was distributed on March 11 and the upcoming
2008 Bond Sale. Chair Wornham mentioned that the workshop was for discussion
only and the Board would consider adoption of the plan at the April Board meeting.
Chair Wornham also commented that at the last meeting the Board heard from
staff and the Water Authority’s financial advisor about the turmoil in
the financial markets and the municipal bond market in particular. He commented
that compared to other municipal agencies, the Water Authority was well positioned.
This good positioning was due to a track record of strong financial management.
The update of our Long Range Financing Plan update reaffirms the Water Authority’s
commitment to prudent long-term financial planning. He mentioned as part of
the workshop today, we would also have a short presentation from Tim Romer of
Goldman Sachs, the firm selected to be Senior Manager of the Water Authority’s
upcoming Series 2008A Water Revenue Certificates of Participation issue.
5. WORKSHOP ON THE 2008 UPDATE OF THE WATER AUTHORITY’S LONG-RANGE FINANCING
PLAN AND THE UPCOMING 2008 BOND SALE
Acting Director of Finance, Eric Sandler presented an in-depth presentation
on the Water Authority’s Draft 2007-2008 Update to the Long-Range Financing
Plan and covered the content of the plan, target audiences, policies, assumptions
and outputs, as well as the schedule of the plan. He emphasized that the Water
Authority’s financial management was conservative and prudent despite
the turmoil in the financial markets and that the Long-Range Financing Plan
was a strong marketing document that demonstrates long-term feasibility and
affordability of the Capital Improvement Program and financing plan as well
as the Water Authority’s commitment to long-range planning. Mr. Tim Romer
of Goldman Sachs also provided a short presentation on the current market environment
and marketing plans for the upcoming bond issue.
The Directors asked questions and made comments on the presentation.
6. ADJOURNMENT
There being no further business to come before the Administrative and Finance
Committee, Chair Wornham adjourned the meeting at 2:25 p.m.
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Tom Wornham, Chair
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