MINUTES OF THE FORMAL BOARD OF DIRECTORS' MEETING

March 27, 2008

WATER PLANNING COMMITTEE MEETING

CALL TO ORDER/ROLL CALL
Chair Lewinger called the meeting to order at 9:00 a.m. Committee members present were Vice Chairs Saunders and Muir, Directors Arant, Barrett, Bowersox, Dailey, Linden, Martin, McMillan, Steiner, and Watton. Committee member absent were Directors Lewis and Parker. Also present were Directors Bond, Brammell, Craver, Croucher, Ferguson, Hilliker, Johnson, Knutson, Morrison, Petty, Pocklington, Price, Smith, 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, Assistant General Manager Cushman, Director of Water Resources Weinberg, Water Resources Manager Yamada, Principal Water Resources Specialist Friehauf.

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 Lewinger updated the Committee members on emergency water deliveries currently being made to Tijuana. Last year, Mexico requested approximately 4,400 AF of water to be delivered to Tijuana in 2008, over seven months. The Water Authority staff handles the administrative functions, and Otay Water District operations staff handles day-to-day communication with the operations crew in Tijuana. Per the agreement, Mexico deposits funds with the Water Authority to cover the transportation costs prior to commencing deliveries. Emergency deliveries are needed due to diminishing supplies from Rodriguez Reservoir, which is the local reservoir serving Tijuana. Local supplies from Rodriguez Reservoir and Colorado River supplies are the two primary sources of water serving Tijuana. Deliveries are made through the conveyance facilities of Metropolitan, the Water Authority, and Otay Water District on a space available basis.

Of interest to the Committee is how the seawater desalination project in Carlsbad was progressing and the upcoming important regulatory agency meeting. As part of the permitting process, the Regional Water Quality Control Board would consider Poseidon’s proposed Flow, Entrainment, and Impingement Minimization Plan for the project on April 9. The Plan was developed in response to a Regional Board permit requirement that Poseidon prepare a plan to minimize impacts to marine organisms when the desalination project intake requirements exceed the volume of water being discharged by the Encina Power Station.

Chair Lewinger reminded committee members of the Special meeting of the Water Planning Committee on the San Vicente Dam Raise Project prior to the series of actions the committee would take at the April Board meeting on the San Vicente Carryover Storage EIR-EIS next Wednesday, April 2, 2008 in the Board room.

DIRECTORS’ COMMENTS
There were no Directors comments.


I. CONSENT CALENDAR

1. Drought Management Plan

Mr. Weinberg updated the committee on the Drought Management Implementation Plans current activities and he reviewed the steps that were taken, starting April 2007 through June 2008.

1-A Draft Model Drought Response Conservation Program Ordinance for Use by the San Diego County Water Authority Member Agencies.

Staff recommendation: Approve release of the draft Model Drought Response Conservation Program Ordinance for use by member agencies in updating their existing ordinances.

Ms. Friehauf reviewed the purpose of the ordinance, the process of preparation with the drought response workgroup, key elements such as Water Code Sections 375 and 350, and the basic content. She then referred to the drought response levels and the response level triggers with correlation between drought response levels and Drought Management Plan stages. Ms. Friehauf reviewed the irrigation and water-use restrictions and the next steps.

Director Muir moved, Director Steiner seconded, and the motion passed unanimously to approve the Draft Model Drought Response Conservation Program Ordinance for Use by the San Diego County Water Authority Member Agencies.

1-B Drought Management Plan Implementation report.

Mr. Yamada provided an updated report on current weather conditions. He then referred to the challenges with the Delta smelt, Longfin smelt, Chinook (King) Salmon, and the Wanger decision and showed water use and supply outlook graphs. The abbreviated report focused on available supplies and the first data point on 2008 water use pertaining to Director Price’s comment from the last committee meeting.

Chair Lewinger took the closed session item out of order.

IV. CLOSED SESSION

Mr. Hentschke took the Board into Closed Session at 9:20 a.m.

1. CLOSED SESSION:
Conference with Real Property Negotiator
Government Code §54956.8
Property: Semitropic-Rosamond Water Bank Authority-
Groundwater Basin Storage Rights and Water
Agency negotiators: Daniel Hentschke, Dennis Cushman,
Gordon Hess, Debbie Espe, Bob Campbell
Negotiating Parties: Designated representatives of Semitropic-
Rosamond Water Bank Authority-
Under Negotiation: Price and terms of acquisition

The Board came out of closed session at 10:45 a.m. Mr. Hentschke stated that there was nothing to report.

2. Make a determination regarding the one-year water transfers with Butte Water District and Sutter Extension Water District.

Staff recommendation: Authorize the General Manager to execute April 2, 2008, options and make option payments totaling $912,850 to Butte and Sutter Extension water districts, extending options to April 15, 2008; and, authorize the General Manager to execute the final April 15, 2008, water transfer options, execute the water transfer purchases with Butte Water District and Sutter Extension water districts, and make final option payments totaling $3,461,550 to the districts, contingent upon an anticipated Table A allocation =50% for the water year on April 15th.

Mr. Cushman reviewed the 2008 Short-Term Water Transfers. He included the MWD’s 2008 Supply/Demand Status, short-term water transfers, 2008 Delta transfers and Delta capacity to move transfer water at Harvey O. Banks Pumping Plant. Mr. Cushman briefly summarized short-term water transfer, the cost of transfer water and the status of key transfer steps, remaining risks and uncertainties pertaining to hydrologic, regulatory, and legal challenges.

The staff recommendation was amended to the following:

Authorize the General Manager to execute April 2, 2008, options and make option payments totaling $912,850 to Butte and Sutter Extension water districts, extending options to April 15, 2008; and, authorized the General Manager to execute the final April 15, 2008, water transfer options, execute the water transfer purchases with Butte Water District and Sutter Extension water districts, and make final option payments totaling $3,461,550 to the districts, contingent upon an anticipated Table A allocation =50% for the water year on April 15, 2008. If the State Water Project allocation is greater than 50% and the Department of Water Resources assures the Water Authority can move the transfer supplies, the General Manager will consult with the Board officers to determine whether to execute the water transfers.

Director Muir moved, Director Steiner seconded, and the motion to accept the amended staff recommendation passed unanimously.

III. INFORMATION

1. Climate change activities update.

2. Water Resources report.

The Climate change activities update and the Water Resources Report was received and filed.

V. ADJOURNMENT

There being no further business to come before the Water Planning Committee, Chair Lewinger adjourned the meeting at 11:15 a.m.



IMPORTED WATER COMMITTEE

CALL TO ORDER / ROLL CALL
Chair Croucher called the Imported Water Committee to order at 11:25 a.m. Committee members present were Directors Brammell, Ferguson, Knutson, Lewinger, Martin, McMillan, Price, and Williams. Directors Craver, Linden, Lizzul, and Parker were absent. Also present were Directors Arant, Barrett, Bond, Bowersox, Dailey, Johnson, Morrison, Muir, Petty, Pocklington, Saunders, Smith, 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 Chief Chen, Colorado River Programs Director 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
Chair Croucher discussed the latest snow survey results, MWD’s approved 2008/09 budget and associated rates and charges, and stated an IMAX movie on the Colorado River would be released soon.

DIRECTORS’ COMMENTS
Director Petty discussed concerns with the implementation of the 30 percent Interim-Agricultural Water Program cutback, and stated the Rainbow Municipal Water District would send a letter to the Water Authority to seek further details regarding the cutback.


I. CONSENT CALENDAR

1. Increase professional services contract to Glenn M. Reiter & Associates by $50,000 to provide consulting and support services for an 18-month period for a new not-to-exceed amount of $99,900.

Staff recommendation: Authorize an increase of $450,000 for a professional services contract to Glenn M. Reiter & Associates to provide consulting and support services to review MWD’s existing water rates and charges, and any potential new charges for an 18-month period for a not-to-exceed amount of $99,900.

Director Ferguson moved, Director Knutson seconded, and the motion
passed unanimously.

II. ACTION/DISCUSSION

1. MWD Issues and Activities update.

1-A Metropolitan Water District’s Budget for fiscal year 2008/09.

Chair Croucher stated that this item was available in the board packet.

1-B Metropolitan Water District’s Delegates report.

Director Bond commented on the adopted budget and that the board urged MWD to continue seeking ways to contain and cut costs.

2. Colorado River Programs.

2-A Colorado River Board Representative’s report.

Director Knutson said that the Colorado River Board was one of the participating agencies in the International Boundary and Water Commission’s process of developing cooperative resolution to various Colorado River issues between the U.S. and Mexico.

III. INFORMATION

1. Presentation on All American Canal Lining project.

2. Binational efforts and Colorado River management.

Items one and two were postponed to the April committee meeting.

3. Metropolitan Water District Program report.

This item was noted and filed.

IV. CLOSED SESSION

There were no items listed under closed session.

V. ADJOURNMENT

There being no further business to come before the Imported Water Committee, Chair Croucher adjourned the meeting at 11:34 a.m.

LEGISLATION, CONSERVATION AND OUTREACH COMMITTEE

CALL TO ORDER/ROLL CALL
Vice Chair Morrison called the Legislation, Conservation and Outreach Committee to order at 11:36 a.m. Committee members present were Vice Chairs Morrison and H. Williams and Directors Arant, Bond, Croucher, Dailey, Hilliker, Muir, Tu, Watton, K. Williams, and Wornham. Committee members absent were Directors Craver and Quist. Also present were Directors Barrett, Bowersox, Brammell, Ferguson, Johnson, Knutson, Lewinger, McMillan, Petty, Pocklington, Price, Saunders, Smith, 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, and 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
There was no Chair’s Report.

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

I. CONSENT CALENDAR

1. Amendment No. 4 to professional services contract between the San Diego County Water Authority and Honeywell International, Inc., for operation of the Voucher Incentive Program, to extend the contract one year and increase the contract amount by $1,400,000.

Staff recommendation: Approve amendment to Honeywell contract to extend term of the agreement to June 30, 2009, and increase contract amount by $1,400,000.

2. Water Authority participation in Metropolitan Water District of Southern California’s “Save A Buck” Program.

Staff recommendation: Approve participation in Metropolitan’s Save A Buck Program.

Director Croucher moved, Director Dailey seconded, and the motion carried unanimously to accept staff recommendations.

II. ACTION/DISCUSSION

1. Legislative Issues.

1-A Report by Carpi and Clay.

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

1-B Adopt positions of: support, if amended, on AB 2175 (Laird/Feuer); support on AB 2501 (Wolk); support on AB 2913 (Salas).

Staff recommendation: Adopt positions of support, if amended, on AB 2175 (Laird/Feuer); support on AB 2501 (Wolk); support on AB 2913 (Salas).

Director Tu moved, Director Bond seconded, and the motion carried unanimously to approve staff recommendation.

2. Water Authority Membership in the Alliance for Water Efficiency.

Staff recommendation: Authorize membership in the Alliance for Water Efficiency at the Bronze level.

Director Dailey moved, Director Croucher seconded, and the motion carried unanimously.

3. Memorandum of Understanding between the San Diego County Water Authority and Cuyamaca Community College for a Landscape Auditor Internship Program in the amount of $285,870 for calendar years 2008 and 2009.

Staff recommendation: Approve the Memorandum of Understanding between the San Diego County Water Authority and Cuyamaca Community College for an Internship Program for a not-to-exceed amount of $285,870.

Director H. Williams moved, Director Tu seconded, and the motion carried unanimously to accept staff recommendation.

4. Amend professional services contract with Mentus, Inc., to implement regional advertising and marketing plan to support Drought Management Plan communications strategy.

Staff recommendation: Amend the professional services contract with Mentus, Inc., by $1,625,000 for a total amount not-to-exceed $1,787,000 to implement the regional conservation advertising and marketing plan in support of the Drought Management Plan communications strategy.

Director of Public Affairs Foster initiated the presentation, including Drought Management Plan (DMP) communications strategy and advertising/marketing phase one. Mr. Guy Iannuzzi, Chief Executive Officer of Mentus, continued with the presentation, summarizing the approach of the campaign that would be conducted in three phases. He presented creative concepts, timeline, examples of campaign promotions, and project budget. Director of Public Affairs Foster completed the presentation by discussing program funding, integration with existing outreach, and staff recommendation.

Director H. Williams moved, Director Dailey seconded and discussion followed. Director Ferguson requested that the campaign have a regional focus not just on the city of San Diego. Mr. Iannuzzi stated that it would. Director Thompson asked about shutting off the water in the TV spot where the child says to “…leave water for me.” Mr. Iannuzzi stated that Mentus would change that TV spot accordingly. Vice Chair Morrison called for the question and the motion passed unanimously.

5. Status of State and Regional Model Landscape Ordinances.

No discussion was held.

III. INFORMATION

The following items were received and filed:

1. Water Conservation Garden report.

2. Status report on legislation and legislative positions.

3. Government relations update.

4. Outreach activities for the month of February 2008.

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, Vice Chair Morrison adjourned the meeting at 12:51 p.m.



ENGINEERING AND OPERATIONS COMMITTEE

CALL TO ORDER / ROLL CALL
Chair Ferguson called the Engineering and Operations Committee to order at 1:34 p.m. Committee members present were Vice Chairs Bowersox and Johnson, Directors Brammell, Knutson, Morrison, Petty, Smith, Thompson and Tu. Committee members absent were Directors Hogan, Lizzul and Pocklington. There was a quorum of the Committee. Other Board members present were Directors Arant, Dailey, McMillan, Price, H. Williams, K. Williams and Wornham. Director Barrett and Bond arrived at 1:35 p.m. Staff present was General Counsel Hentschke, Deputy General Manager Lanspery, Deputy General Manager Belock, Director of Engineering Stift, Director of Right of Way Rose, Director of Operations and Maintenance Eaton.

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 Ferguson announced and discussed that the Engineering and Operations tour would take place on Thursday, June 5, 2008, reservation forms and the preliminary itinerary were in the pick-up packet. Also, a Special Engineering and Operations Committee meeting with the full Board invited was scheduled for April 10, 2008 at 1:30 p.m. to discuss the Elfin Forest Operational Budget; the Lake Hodges Project and Reservoir Regulating Plan; and contractual requirements of the Water Treatment Plant. She also announced a Special Engineering and Operations Committee meeting was scheduled for May 14, 2008 at 10:00 a.m. to discuss the construction progress and budget status of the San Vicente Pipeline and Lake Hodges Projects, as well as a professional services contract for the San Vicente Dam Raise and Carryover Storage Project.

DIRECTORS’ COMMENTS
There were no Director’s comments.

I. CONSENT CALENDAR

1. Construction contract change orders for the Aqueduct Protection Program.

Staff recommendation: Accept change orders 1 through 4 for $57,551 to American Construction and Supply, Inc.’s construction contract for the Cathodic Protection of Ramona Pipeline Phase II project, increasing the contract from $678,906 to $736,457.

2. Professional services contract with Paladin Professional Consultants, L.L.C. for the San Vicente Pipeline project litigation support.

Staff recommendation: Award a professional services contract to Paladin Professional Consultants, L.L.C., for a not-to-exceed amount of $1,800,548 to provide claims resolution and litigation support including the forensic analysis of disputed cost and schedule impacts of differing site conditions encountered during tunnel excavation.

3. Amended and restated agreement for legal services with McKenna Long & Aldridge LLP.
Staff recommendation: Authorize the General Counsel to execute the amended and restated agreement for legal services with McKenna Long & Aldridge.

Vice chair Johnson moved to approve the consent calendar, Director Barrett seconded, and the motion carried unanimously.

II. ACTION/DISCUSSION

III. INFORMATION

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

The presentation for the above agenda item was deferred to the April 24, 2008 Board meeting.

2. First Aqueduct protection.

Mr. Rose referred the Committee to the respective board memo and provided an update on further information received by staff.

IV. CLOSED SESSION

There were no closed session items.

V. ADJOURNMENT

There being no further business to come before the Engineering and Operations
Committee, Chair Ferguson adjourned the meeting at 1:41 p.m.



ADMINISTRATIVE AND FINANCE COMMITTEE MEETING

CALL TO ORDER / ROLL CALL
Chair Wornham called the Administrative and Finance Committee meeting to order at 1:50 p.m. Committee members present were Chair Wornham, Vice Chair Price, Directors Bond, Hilliker, Johnson, Petty, Pocklington, Saunders*, Smith, Thompson, and H. Williams. Committee members absent were Vice Chair Hogan, Directors Lewis, and Quist. Also present were Directors Arant, Barrett, Bowersox, Brammell, Dailey, Ferguson, McMillan, Morrison, Muir*, Steiner*, Tu, 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 Belock and Lanspery, Assistant General Manager Dennis Cushman, Director of Administrative Services Young, and Acting Director of Finance/Treasurer Sandler. Also present was Richard Morales of Wedbush Morgan and Kathleen McKenna of MARSH USA.

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 mentioned at last month’s board meeting, the board had heard from staff and the Water Authority’s financial advisor about the turmoil in the financial markets and stated the Water Authority is well-positioned compared to other municipal agencies. Mr. Wornham expressed this positioning was the result of prudent financial management and that the board would hear more about the Water Authority’s conservative investment policy this month during the first presentation on the Treasurer’s report.

Chair Wornham also announced on Thursday, March 20, 2008, the Administrative and Finance Committee held an extensive, two-hour workshop in which the board discussed the Water Authority’s Long-Range Financing Plan and the upcoming 2008 bond sale. At the workshop Mr. Sandler provided a comprehensive presentation on the Draft Long-Range Financing Plan and the board also heard from various parties including the Water Authority’s financial advisor Rich Morales regarding elements of the upcoming 2008 Bond Issue. He mentioned that the board would hear from Mr. Sandler today on the Draft Long-Range Financing Plan and some follow-up items regarding the 2008 bond sale.

DIRECTORS’ COMMENTS
There were no comments by Directors.

I. CONSENT CALENDAR

1. Amend capacity charge ordinance relating to standby capacity for fire sprinklers for single family dwellings.

Staff recommendation: Adopt Ordinance No. 2008-___, an Ordinance of the San Diego County Water Authority amending Ordinance No. 97-1 to permit an exemption from payment of capacity charges for increases in meter size necessary to accommodate standby capacity for residential fire sprinklers single family residences.

Director Pocklington moved, Director Johnson seconded, and the motion passed unanimously to approve the Consent Calendar.

*Director Muir joined the meeting at 2:00 p.m.

*Director Saunders joined the meeting at 2:02 p.m.

II. ACTION/DISCUSSION

1. Treasurer’s Report.

Staff recommendation: Note and file monthly Treasurer’s report

Chair Wornham mentioned to the Board that staff would start sharing an investment portfolio update on a quarterly basis to keep the Board informed.

Assistant Treasurer Mark Delin gave a quick update on the Water Authority’s investment policy objectives, which included safety, liquidity, yield and public trust. Mr. Delin offered details and procedures that staff practices to ensure the safety of the Water Authority’s investment decisions.

Mr. Delin introduced Richard Babbe, Senior Managing Consultant of PFM Asset Management LLC, who had performed our third party investment review since 2002. Mr. Babbe described the Water Authority’s portfolio and ensured that safety is one of the primary objectives of the Water Authority. Mr. Babbe explained our investment policy showing the Board many charts stating that the Water Authority’s portfolio was managed in an overall prudent manner, which avoids riskier investment types, emphasizes high quality issuers and was well diversified across sectors and issuers.

Several questions were asked after the presentation.

2. Presentation on Water Authority Long-Range Financing Plan

Mr. Sandler summarized the Water Authority’s fiscal year 2007 and 2008 Long Range Financing Plan and 2008 Bond Issue by explaining that the Long-Range Financing Plan was a strong marketing document that emphasizes the Water Authority’s commitment to prudent, long-range financial planning and demonstrates long-term feasibility and affordability of the Capital Improvement Program and financing plan. He also explained that the plan contained three types of sections: including policy-related chapters, assumption related-chapters and output-related chapters. He provided a brief summary of the topics discussed at the March 20th Special Board meeting.

Mr. Sandler also provided an overview of the 2008 Bond Issue. He mentioned that proceeds from the 2006 Commercial Paper issue were projected to be spent by June, and that approximately $500 million of new money would be needed to fund the next installment of the Capital Improvement Program. He also noted that, depending on the market, additional bonds may be issued for potential refundings. Mr. Sandler also discussed how the choice of a negotiated method of sale for the upcoming 2008 bond issue positions the Water Authority to broaden and diversify its investor base, and the underwriter team represents a mix of retail and institutional firms to maximize interest from a range of investors and secure the best rates possible for the Water Authority.

Several questions were asked from the board. Mr. Richard Morales of Wedbush Morgan assisted Mr. Sandler in response to questions.

Director Smith recommended adoption of the Draft Long-Range Financing Plan and upcoming 2008 Bond Issue. Chair Wornham advised that we were not ready to take action and this was an information item. Director Smith withdrew the motion.

Chair Wornham thanked Eric Sandler and staff for a job well done.

3. Water Authority Business Insurance – Workers’ Compensation Insurance

Staff recommendation: Authorize the purchase of workers’ compensation insurance from Wausau in the amount of $300,210 and confirm withdrawal from ACWA-JPIA workers’ compensation program effective July 1, 2008.

Risk Manager Homer gave a brief presentation on the Water Authority’s Workers’ Compensation Insurance and provided a summary table of the quotes received.

Ms. Kathleen McKenna of MARSH USA, assisted Mr. Homer in response to questions from the board.

*Chair Steiner joined the meeting at 2:43 p.m.

*Secretary Watton joined the meeting at 2:45 p.m.

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

III. INFORMATION

The following items were received and filed:

1. Report on Metropolitan Water District’s Tier 2 charge for calendar year 2007.

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 2:53 p.m.

FORMAL BOARD OF DIRECTORS’ MEETING OF MARCH 27, 2008

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 Johnson led the salute to the flag.

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

3-A Report on proxies received. Director Arant was the proxy for Director Lewinger, Director Ferguson was the proxy for Director Knutson, Director Smith was the proxy for Director Linden and Director Watton was the proxy for Director Croucher.

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

5. APPROVAL OF MINUTES Director Johnson moved, Director Wornham seconded and the motion carried for a total of 86.24% of the vote to approve the minutes of the Special Board meeting of February 14, 2008, the Special meeting of the Engineering and Operations Committee of February 21, 2008 and the Formal Board of Directors’ meeting on February 28, 2008.

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 Reappointment of Director. Reappointment of Ron Morrison, city of National City. Term expires on March 8, 2014.

8. REPORTS BY CHAIRS

8-A Chair’s Report – Chair Steiner announced she had met with the legislative lobbying team that included Vice Chair Lewis and Secretary Watton and they met with several legislatures.

8-B Report by Committee Chairs

Water Planning Committee. Director Saunders announced the two action items had passed in committee.

Imported Water Committee. Chair Steiner announced the action item had passed.

Legislation, Conservation and Outreach Committee. Director Morrison announced all action items had passed in committee.

Engineering and Operations Committee. Director Ferguson reminded the Board members of the two upcoming special meetings of the Engineering and Operations Committee on April 10, 2008 and May 14, 2008. She announced on May 5, 2008 the Twin Oaks Water Treatment Plant would be dedicated. She stated all items had passed in Committee.

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

9. CONSENT CALENDAR

Director Arant moved, Director Morrison seconded, and the motion carried at 86.24% of the vote to approve the Consent Calendar.

10. ACTION/DISCUSSION

10-A Approve adjustments to compensation for General Manager and General Counsel.
Chair Steiner announced action on this item would be announced after the closed session.

11. CLOSED SESSIONS

Chair Steiner took the Board into Closed Session on items 11-B and 11-C at 3:15 p.m.

At 3:35 p.m. the Board came out of Closed Session and Chair Steiner reported the following action was taken:

10-A Approve adjustments to compensation for General Manager and General Counsel.

The Board approved and authorized the Chair to execute contract amendments
with the General Manager and General Counsel, increase salary by 3.5 percent,
provide three additional days of executive leave, amend paragraph 3 of the Base
Agreement to replace the words “twelve (12) months” with the words “eighteen
(18) months” in the first sentence of the paragraph, and establish the June Board
meeting of 2009 and each June Board meeting thereafter as the annual contract
review date.

12. SPECIAL REPORTS

12-A GENERAL MANAGER’S REPORT – Ms. Stapleton reminded the Board to look at the upcoming events calendar in their board packets and to add the dates to their personal calendars.

12-B GENERAL COUNSEL’S REPORT – No report was given.

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

12-D SANDAG REPORT – Director Dailey reported the SANDAG board would be meeting the next day to address the 2009 budget and the 2008 San Diego Regional Economic Prosperity Strategy. She further stated as it pertains to the Water Authority their strategic goal #3 is provide an adequate supply of water from a diverse portfolio and ensure it is delivered in a timely, reliable and competitively priced manner.

SANDAG Subcommittee: Borders/Regional Planning Committee – Director Howard Williams – Director Williams reviewed the Regional Planning Committee meeting that he had recently attended.

12-E AB 1234 COMPLIANCE REPORTS - Director Petty reported on the ACWA Legislative Symposium that he had recently attended.

13. OTHER COMMUNICATIONS
Per the request of Director Dailey, Chair Steiner read both of the letters that had been submitted by members of the public regarding the advertising campaign.

14. ADJOURNMENT
There being no further business to come before the Board, Chair Steiner adjourned the meeting at 3:40 p.m.



_______________________________
Fern M. Steiner
Chair

_______________________________
Mark W. Watton
Secretary

_______________________________
Doria F. Lore, Clerk of the Board

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