MINUTES OF THE FORMAL BOARD OF DIRECTORS' MEETING

April 24, 2008

ENGINEERING AND OPERATIONS COMMITTEE

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 Chairs Johnson and Bowersox, Directors Barrett, Brammell, Hogan, Morrison, Petty, Pocklington, Smith, Thompson, and Tu. Directors Lizzul and Knutson were absent. Other Board members present were Directors Arant, Bond, Croucher, Dailey, Hilliker, Lewis, Linden, McMillan, Muir, Parker, Price, Saunders, Steiner, Watton, H. Williams, K. Williams, and Wornham. 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 Managers Belock and 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 reported her trip to Washington D.C. on April 14, accompanied by Rancho Penasquitos Pressure Control/Hydroelectric Facility Project Manager Kelly Rodgers, to attend the National Hydropower Association's Board of Director's luncheon to accept the Outstanding Steward of America's Water award in the category of operational excellence on behalf of the Water Authority. The NHA selected the project, because it enhanced flexibility in delivering water through the region, and to meet peak power needs in San Diego County with clean, green energy.

Chair Ferguson announced three upcoming events for the Committee's attention:

1. Dedication Ceremony of the Twin Oaks Valley Water Treatment Plant on May 5, at 10:00 a.m. for Board members, member agencies, and project staff.

2. Special Engineering and Operations Committee meeting with invitation to the full Board would be held on May 14, 10:00 a.m. in the Board Room. The agenda items include the status of the San Vicente Pipeline, Lake Hodges projects, and Mission Trails projects as well as information on the San Vicente Dam Raise consultant selection process.

3. Engineering and Operations Committee Annual Tour would be held June 5, and deadline for RSVP to Doria Lore was May 22, 2008.

DIRECTORS’ COMMENTS
There were no Directors comments.


I. CONSENT CALENDAR

1. Notice of completion for the Pipeline 4 Repair at San Diego River.

Staff recommendation: Ratify the final contract amount of $569,004 for the Pipeline 4 Repair at San Diego River emergency construction contract with L.H. Woods and Sons, Inc., accept work as complete, record the notice of completion, and release all funds held in retention to L.H. Woods and Sons, Inc., following expiration of the notice of completion period.

2. Change orders for the Emergency Storage Project – San Vicente Pipeline and Aqueduct Interconnect project.

Staff recommendation: Accept change orders 41 and 42 to Shea-Traylor Joint Venture's construction contract for the San Vicente Pipeline project for $349,089 and approve change order 43 for the interim payment for costs associated with the differing site condition in Reach 4 East in the amount of $1,474,000 for a total increase to date of $12,053,111.

Vice Chair Johnson moved, Director Hogan seconded, and the motion to accept the Consent Calendar passed unanimously.

II. ACTION/DISCUSSION

1. Reservoir Regulating Manual for Lake Hodges Projects.

1-A Presentation by Kim Thorner, General Manager of Olivenhain Municipal Water District regarding Lake Hodges Operating Plan.

Ms. Thorner requested that her presentation be allowed the maximum time of 45 minutes to allow sufficient time for the four Olivenhain Municipal Water District (OMWD) presenters. Hearing no objections from the Committee members, Chair Ferguson granted Ms. Thorner’s request for maximum presentation time.

Ms. Thorner stated her purpose was to present the official position of the OMWD Board of Directors regarding the Lake Hodges connection to Olivenhain. She presented an overview of the concerns OMWD had about the proposed reservoir regulating plan, reviewed contractual commitments contained in the 1998 agreement signed between the Water Authority and OMWD, and described questions coming from her community related to the OMWD treatment plant and the Lake Hodges water quality that would be pumped into Olivenhain Dam.

Ms. Thorner introduced Dr. Alaa Aly from Intera, Inc., in Colorado, OMWD’s water quality expert, a professional engineer with experience in water supply and quality issues. Dr. Aly presented his evaluation of water quality in Lake Hodges, using data obtained through the City of San Diego’s water quality reports and the annual data collected by the Santa Fe Irrigation District. He listed impurities found in the water, 78 of which were considered hazardous by the EPA. Dr. Aly stated Lake Hodges has been listed as an impaired body of water by the EPA under the Federal Clean Water Act §3039(d). Dr Aly recommended either a thorough study of the lake and resolution of the contaminant problem, or a real-time monitoring system of Lake Hodges before water is transferred to the Olivenhain Reservoir.

Paul Weiland, Special Counsel for the OMWD addressed the Committee. Mr. Weiland stated that if the Board approved the regulating plan, the Water Authority would be exposed to significant liability under both federal and state law. He contended that under the California Environmental Quality Act, the Water Authority should conduct a detailed environmental analysis before moving forward. He asserted that under the federal Clean Water Act, there is an absolute prohibition to discharge pollutants from point sources into waters in the United States, and to do so required a permit from the California Regional Water Quality Control Board. Mr. Weiland claimed the Water Authority had not done so. He contended that under the Federal Hazardous Waste Cleanup Act (Superfund), the Water Authority would be strictly liable for the release of hazardous wastes into the environment near Olivenhain Reservoir. Mr. Weiland cautioned the Board that the financial impacts on the Water Authority could be substantial if it did not go forward with due deliberation and care.

OMWD General Counsel Wesley Peltzer was introduced to deliver concluding remarks. Mr. Peltzer stated that transferring water containing hazardous pollutants from Lake Hodges into Olivenhain Reservoir, and from there into the regional water system, was a serious public health and safety issue. On behalf of the OMWD Board of Directors, Mr. Peltzer requested the Water Authority Board delay approval of the Reservoir Regulating Plan and instruct Water Authority staff to work with OMWD staff and other interested parties to arrive at a water quality plan to assure the safe water quality of this region. He emphasized that OMWD was a legitimate stakeholder in the interest of regional water quality and should be included in the planning process. Mr. Peltzer concluded that, if the Board approved the Reservoir Regulating Plan as currently written, the result would be that OMWD would sue the San Diego County Water Authority in order to protect the regional water supply.

At 10:00 a.m. Chair Ferguson called the Committee into to Closed Session, and Mr. Hentschke announced the Engineering and Operations Committee would discuss potential exposure to litigation in Closed Session pursuant to Gov. Code §54956.9(b).

1-B Closed Session:

Conference with Legal Counsel – Potential Litigation

Government Code §54956.9(b) – significant exposure to litigation

At 11:40 a.m. Chair Ferguson called the Committee back into Open Session and Mr. Hentschke stated there was nothing reportable from the Closed Session.

1-C Reservoir Regulating Manual for Lake Hodges projects.

Staff recommendation: Approve the Reservoir Regulating Manual for the Lake Hodges projects as part of the Joint Use Agreement between the San Diego County Water Authority and the City of San Diego.

Mr. Eaton reviewed a timeline of critical decision points regarding the Emergency Storage Project (ESP) over a period of 15 years. He highlighted critical milestones beginning with the 1992 Optimal Storage Study through 1998 when the Board approved the (ESP) and signed the Implementing Agreement (IA).

Water Resources Manager Larry Purcell presented information regarding the Water Authority’s CEQA compliance activities since approval and certification of the EIR in 1996. Mr. Purcell recounted that explicit in the 1996 EIR and 1998 IA, was the concept of the Reservoir Regulating Manual (RRM), and specific criteria for developing the RRM were outlined in the IA, and were adopted when the IA was approved. Mr. Purcell stated the development and implementation of the RRM simply implemented previous Board action to proceed with the ESP, was inherently part of the approved project, and does not require any further Board action regarding CEQA compliance. He stated that in order to prepare the RRM, several limnology studies for Olivenhain and Lake Hodges were conducted, and results of the studies confirmed the adequacy of the water quality analysis used in the 1996 EIR, and were used to write the RRM.

Mr. Eaton addressed the Lake Hodges 303(d) listing under the Federal Clean Water Act, explaining that according to the California Department of Public Health, current water quality in Lake Hodges meets standards for source water, subject to treatment. He reported the most recent limnology study by Jones & Stokes completed in April 2007, concluded the following: Both Lake Hodges and Olivenhain Reservoir were highly stratified; that the pump station operations were unlikely to cause much intermixing; that the ESP transfer of water from Olivenhain Reservoir to Lake Hodges and Lake Hodges water pumped back to Olivenhain in dry years, generally improved the water quality in Lake Hodges and minimized degradation in Olivenhain; that the transfer of significant local runoff water from Lake Hodges to Olivenhain in wet years could substantially degrade water quality in Olivenhain and may impact downstream treatment plants. Mr. Eaton described the RRM contents, and named membership of the team reviewing the draft RRM, which included representatives from OMWD, the City of San Diego, the California Dept. of Public Health, CH2M Hill, OMI, Santa Fe Irrigation District, Helix Water District, Sweetwater Authority, and the Water Authority. Mr. Eaton detailed the team's recommendations.

Chair Ferguson recognized two speakers who requested to address the Committee about the Reservoir Regulating Manual for Lake Hodges projects and water rights of the member agencies:

1. Larry Watt, General Manager of the San Dieguito Water District.

2. Michael Bardin, General Manager of the Rancho Santa Fe Irrigation District.

Vice Chair Johnson moved, and Director Thompson seconded the motion support staff's alternative recommendation: Find that RRM complies with the requirements of Section 9.2 of the Agreement between the SDCWA and the City of San Diego for the Emergency Storage Project (Joint Use of Lake Hodges Dam and Reservoir), and authorize the General Manager to meet with SFID, SDWD and San Diego regarding storage issue and report back to the Board within 90 days any modifications to RRM resulting from those meeting.

The motion passed with a Roll call vote:

6 Aye votes: Directors Bowersox, Ferguson, Johnson, Smith, Thompson, and Tu.

5 No votes: Directors Brammell, Hogan, Morrison, Petty, and Pocklington.

1 Abstention: Director Barrett.

III. INFORMATION

There were no information items.

IV. ADJOURNMENT

There being no further business to come before the Engineering and Operations Committee, Chair Ferguson adjourned the meeting at 12:50 p.m.



WATER PLANNING COMMITTEE

CALL TO ORDER / ROLL CALL
Vice Chair Muir called the meeting to order at 1:15 p.m. Committee members present were Vice Chair Saunders, Directors Arant, Barrett, Bowersox, Dailey, Lewis, Linden, McMillan, Parker, Steiner, and Watton. Committee members absent were Chair Lewinger and Director Martin. Also present were Directors Bond, Brammell, Croucher, Ferguson, Hilliker, Hogan, Johnson, Morrison, Petty, Pocklington, Price, Quist, 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, Assistant General Manager Cushman, Director of Water Resources Weinberg, Water Resources Managers Yamada and Purcell and Senior Water Resources Specialist Gage.

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 Muir thanked all the Committee members who attended the Special Water Planning Committee meeting on April 2, which prepared the Committee for decisions that had to be made today, and provided an overview on future items related to the Carryover Storage project.

Last month the Committee recommended, and the Board approved, release of the model Drought Response Ordinance for use by member agencies to update their existing drought ordinances. The model was the result of many months of work by Water Authority staff and member agencies and is one of the key tools in managing the drought, providing the regional consistency in messaging to the public. Vice Chair Muir thanked Director McMillan and the Padre Dam Board that adopted the model ordinance. The Water Authority looks forward to all member agencies adopting their own ordinances.

Vice Chair Muir stated were no items on the consent calendar. The main item was the Carryover Storage and San Vicente Dam Raise and the committee would hear the staff report first on the EIR related actions and then would take public comments. Mr. Weinberg would briefly introduce the items and Ms. Gage would take the committee through the CEQA related actions.

DIRECTORS’ COMMENTS
None


I. CONSENT CALENDAR

1. Carryover Storage and San Vicente Dam Raise.

1-A Certification of the EIR/EIS.

Resolution Certifying the Final Environmental Impact Report for the Carryover Storage and San Vicente Dam Raise Project; Adopting Environmental Findings of Fact and Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program; Approving the Project; and Authorizing Filing of a Notice of Determination.

Staff recommendation: It is recommended that the Board adopt a Resolution that:

a) Certifies that the Final EIR has been completed in compliance with the California Environmental Quality Act (CEQA) and State CEQA Guidelines, and reflects the independent judgment of the Board;

b) Concurrently adopts Environmental Findings of Fact and Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program;

c) Approves Alternative 1: San Vicente 100,000 acre-feet (AF) with the Marina Quarry option, the Proposed Action in the Final EIR Project Description, as the selected project; and

d) Authorizes the filing of a Notice of Determination.

Mr. Weinberg briefed the Board on the coordination issues, process, and schedule of the Carryover Storage Project EIR/EIS.

Ms. Gage summarized the need for carryover storage and the additional expansion of San Vicente Dam. She also spoke to the environmental process, the CSP alternatives, and environmental impacts proposed actions. She also stated there was significant public outreach and that 25 letters were received from the public. Ms. Gage briefly reviewed the CEQA administrative actions and the next steps to be taken.

Vice Chair Muir called for speakers from the public to address the Board. There were three speakers: Dixie Lansdowne, Lakeside Historical Society, Lakeside, CA 92040; Janis Shackelford, El Cajon, CA 92021; and Gordon Shackelford, El Cajon, CA 92021.

Director Steiner moved, Director Arant seconded, and the motion passed unanimously to adopt Resolution No. 2008-04 certifying the Final EIR has been completed in compliance with the CEQA and reflects independent judgment of the Board; Concurrently adopts Environmental Findings of Fact and Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program; Approves Alternative 1: San Vicente 100,000 AF with the Marina Quarry option, the Proposed Action in the Final EIR Project Description, as the selected project; and Authorizes the filing of a Notice of Determination.

1-B Professional services contract with Dudek to provide project design review and environmental compliance monitoring services for a 48-month period for a not-to-exceed amount of $1,500,000.

Staff recommendation: Award a professional services contract to Dudek to provide project design review and environmental construction monitoring and support services for a 48-month period for a not-to-exceed amount of $1,500,000.

Director Steiner moved, Director McMillan seconded, and the motion passed unanimously to award a professional service contract to Dudek to provide project design review and environmental construction monitoring and support services.

2. Drought Management Plan.

2-A Drought Management Implementation report.

Mr. Yamada presented an abbreviated report focused on available supplies and Judge Wanger’s recent decision related to salmon and steelhead.

2-B Notification to the San Diego County Water Authority Member Agencies of a Regional Drought Response Level 1, Drought Watch Condition.

Staff recommendation: Approve notification of a Drought Response Level 1 condition.

Mr. Weinberg reviewed the model drought response ordinance that was provided to member agencies on March 31, 2008, and the need to notify the member agencies of the current drought response Level 1.

Director Muir moved, Director Steiner seconded and the motion passed unanimously to approve notification of a Drought Response Level 1 condition.

Vice Chair Muir took Information Item #2 out of order.

2. One-year water transfer option with Butte Water District and Sutter Extension Water District.

Vice Chair Muir took the Closed Sessions out of order.

IV. CLOSED SESSION

Mr. Hentschke took the Board into Closed Session at 2:35 p.m.

1. CLOSED SESSION:
Conference with Real Property Negotiator
Government Code §54956.8
Property: Water, water storage and recovery rights of Vidler
Water Company, Inc., in the Semitropic Water Storage District
water banks.
Agency negotiators: Daniel Hentschke, Dennis Cushman, Gordon
Hess, Debbie Espe, Bob Campbell
Negotiating Parties: Designated representatives of Vidler Water Company, Inc., a wholly owned subsidiary of Pico Holdings, Inc.
Under Negotiation: Price and terms of acquisition

2. CLOSED SESSION:
Conference with Real Property Negotiator
Government Code §54956.8
Property: Approximately 18,000 acre-feet of water of Newhall Land and Farming
Company stored in the Semitropic Water Storage District’s groundwater banking program.
Agency Negotiators: Dennis Cushman, Daniel Hentschke, Bob Campbell, Gordon Hess, Debra Espe
Negotiating Parties: Designated representatives of Newhall Land and Farming Company
Under Negotiation: Price and terms of acquisition

The Board came out of Closed Session at 2:53 p.m. Mr. Hentschke stated that Director Saunders recused himself due to his conflict of interest on Pico Holdings, Inc., Mr. Hentschke stated was no reportable action.

III. INFORMATION

1. Analysis of calendar year 2008 Tier 2 supply cost exposure.

3. Water Resources report.

Information Items 1 and 3 was received and filed.

IV. ADJOURNMENT

There being no further business to come before the Water Planning Committee, Vice Chair Muir adjourned the meeting at 2:54 p.m.

ADMINISTRATIVE AND FINANCE COMMITTEE

CALL TO ORDER/ROLL CALL
Chair Wornham called the Administrative and Finance Committee meeting to order at 2:54 p.m. Committee members present were Chair Wornham, Vice Chair Hogan, Directors Bond, Johnson, Petty, Pocklington, Quist, Smith and Thompson. Vice Chair Price, Directors Hilliker, and Lewis arrived at 2:55 p.m. Committee member absent were Directors Saunders and H. Williams. Also present were Directors Bowersox, Croucher, Ferguson, Linden, McMillan, Morrison, Parker, Tu, 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, Director of Finance/Treasurer Sandler, Director of Administrative Services Young, Director of Human Resources Leone, and Assistant Treasurer Delin, and Controller Wade.

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 Wornham announced the Water Authority’s Standard and Poor’s underlying credit rating had been upgraded from AA to AA+. The upgrade came at an advantageous time as the Water Authority would soon go to market with a large bond issue to fund the Capital Improvement Program. Chair Wornham added the upgrade was a significant achievement considering the current financial market as well as a great endorsement of the current and past Boards’ conservative, prudent, and forward-looking financial management.

Chair Wornham stated a workshop was held on March 20, 2008 to review the Long-Range Financing Plan and bond issuance.

DIRECTOR’S COMMENTS
Director Pocklington stated he was pleased with staff’s preparation of the Board in their decision-making process on the Long-Range Financing Plan and bond issuance. Director Pocklington asked whether a discussion of rates and charges was planned in the May/June timeframe.

I. CONSENT CALENDAR

1. Treasurer’s report.

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

There was no action taken on the consent calendar item.

II. ACTION/DISCUSSION

1. Adopt the Water Authority’s fiscal year 2007-2008 Long-Range Financing Plan.

Staff recommendation: Adopt as final, the draft of the Water Authority’s fiscal year 2007-2008 Long-Range Financing Plan, which was distributed to the Board and member agency staff for discussion and consideration on March 11, 2008.

2. Issuance of Water Revenue Certificates of Participation Series 2008A.

Staff recommendation: Adopt resolution 2008-___ authorizing the issuance of the Water Revenue Certificates of Participation in an aggregate principal amount not to exceed $625 million for the purpose of financing the Capital Improvement Program (CIP) and for the potential refunding of existing long-term debt, and to approve the forms of financing documents, including the Preliminary Official Statement. In addition, approve the selection of Goldman, Sachs and Citigroup as senior book running and co-senior managers as underwriters for the transaction, and approve the increase of an existing contract with PFM Asset Management, for investment advisory services by $75,000.

Eric Sandler gave a brief introduction of the 2007-2008 Long-Range Financing Plan and Issuance of Water Revenue Certificates of Participation Series 2008A.

Director Pocklington moved items 1 and 2, seconded by Director Petty. The motion passed unanimously.

III. INFORMATION

The following items were received and filed:

1. Board of Directors’ first quarter 2008 payments and attendance.

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 3:00 p.m.



LEGISLATION, CONSERVATION AND OUTREACH COMMITTEE

CALL TO ORDER / ROLL CALL
Chair Tu called the Legislation, Conservation and Outreach Committee to order at 3:00 p.m. Committee members present were Chair Tu, Vice Chairs Morrison and H. Williams and Directors Arant, Bond, Croucher, Dailey, Hilliker, Muir, Quist, Watton, K. Williams, and Wornham. Also present were Directors Bowersox, Brammell, Ferguson, Hogan, Johnson, Lewis, Linden, McMillan, Parker, Petty, Pocklington, 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, Director of Water Resources Weinberg, 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.

DIRECTORS’ COMMENTS
There were no Director’s comments.

I. CONSENT CALENDAR

Professional services contract to the Water Conservation Garden at Cuyamaca College for a 12-month period for a not-to-exceed amount of $65,000.

Staff recommendation: Award a professional services contract to the Water Conservation Garden at Cuyamaca College to provide water conservation outreach services for a 12-month period for a not-to-exceed amount of $65,000.

Nomination of Jeffrey Volberg to ACWA’s State Legislative Committee.
Staff recommendation: Approve the nomination of Jeffrey Volberg to ACWA’s State Legislative Committee.

Director Croucher moved, Director Morrison 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 of AB 1654 (Huffman); Support, if amended, on AB 2219 (Parra); Support, if amended, on AB 2270 (Laird/Feuer); Support on AB 2938 (De Leon); and Oppose SB 1165 (Kuehl).

Staff recommendation: Adopt positions of support of AB 1654 (Huffman); support, if amended, on AB 2219 (Parra); support, if amended, on AB 2270 (Laird/Feuer); support on AB 2938 (De Leon); and oppose SB 1165 (Kuehl).

1-C Consider April 1 amendments to Water Authority sponsor bill AB 2404 (Salas, D-Chula Vista).

Staff recommendation: Adopt a neutral position on the bill.

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

III. INFORMATION

The following items were received and filed:

1. Water Conservation Garden report.

2. Drought Management Communications Advertising/Marketing Plan update.

3. Conservation outreach update.

4. Status report on legislation and legislative positions.

5. Government relations update.

6. Outreach activities for the month of March 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, Chair Tu adjourned the meeting at 3:05 p.m.



IMPORTED WATER COMMITTEE MEETING

CALL TO ORDER / ROLL CALL
Chair Croucher called the Imported Water Committee to order at 3:07 p.m. Committee members present were Directors Brammell, Ferguson, Linden, McMillan, Parker, Price, Steiner, and Williams. Directors Knutson, Lewinger, Lizzul, and Martin were absent. Also present were Directors Arant, Barrett, Bond, Bowersox, Dailey, Hilliker, Hogan, Johnson, Lewis, Morrison, Muir, Petty, Pocklington, Smith, Thompson, Tu, 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, Colorado River Programs 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 due to the continuing dry weather conditions, DWR reported the State Water Project Table A allocations would remain at 35 percent. He stated the new schedule for MWD inspection tours would be available in June.

4-A Directors’ comments.

There were no comments made by Directors.

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 Metropolitan Water District’s Delegates report.

There were no comments from the delegates.

2. Colorado River Programs.

2-A Colorado River Board Representative’s report.

There were no comments regarding the Colorado River Board meeting.

2-B Colorado River Programs Quarterly report.

Chair Croucher noted that the report was in the packet for review.

III. INFORMATION

1. Presentation on All American Canal Lining project.

Halla Razak gave a brief presentation on the All American Canal tour and the
status of construction on the project.

The following items were noted and filed:

2. Binational efforts and Colorado River management.

3. Bay-Delta quarterly update.

4. Metropolitan Water District Program report.

Chair Croucher stated that the Closed Session would be held during the Formal
Board meeting.

IV. CLOSED SESSION

1. CLOSED SESSION:
Conference with Real Property Negotiator
Government Code §54956.8
Property: Approximately 1,000 Acres of Land in the Anza-Borrego Flat Tailed Horned Lizard Management Area
Agency Negotiators: Daniel Hentschke, Bill Rose, Bill Busch, Bill Tippets
Negotiating Parties: Anza-Borrego Foundation, Anza-Borrego State Park
Under Negotiation: Price and terms of acquisition

V. ADJOURNMENT

There being no further business to come before the Imported Water Committee, Chair Croucher adjourned the meeting at 3:13 p.m.


FORMAL BOARD OF DIRECTORS’ MEETING OF APRIL 24, 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, Craver, Croucher, Dailey, Ferguson, Hilliker, Hogan, Johnson, Knutson, Lewis, Linden, McMillan, Morrison, Muir, Parker, Petty, Pocklington, Price, Quist, Saunders, Smith, Steiner, Thompson, Tu, Watton, H. Williams, K. Williams and Wornham. Directors absent were Lewinger, Lizzul, Martin, and Representative Slater-Price.

3-A Report on proxies received. Director Arant was the proxy for Director Lewinger and Director Lewis was the proxy for Director Martin.

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

5. APPROVAL OF MINUTES Director Wornham moved, Director Smith seconded and the motion carried for a total of 99.85% of the vote to approve the minutes of the Special meeting of the Administrative and Finance Committee of March 20, 2008 and the Formal Board of Directors’ meeting of March 27, 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 Presentation of Science Fair award winners.

7-B Reappointment of Director. Reappointment of Claude A. “Bud” Lewis , Carlsbad Municipal Water District. Term will expire on June 16, 2014.

7-C Reappointment of Director. Reappointment of Jim Barrett, City of San Diego. Term will expire on February 24, 2013.

Chair Steiner introduced all of the Science Fair award winners who then provided a brief description of their projects. Chair Steiner announced Director Lewis and Director Barrett had been reappointed to the Water Authority Board.

8. REPORTS BY CHAIRS

8-A Chair’s Report – Chair Steiner reviewed her meetings from the past month, including the Department of Water and Power of Los Angeles.

8-B Report by Committee Chairs

Engineering and Operations Committee. Director Ferguson announced Director Hogan would provide the minority report on item 9-3, followed by Director Johnson providing the majority report. Director Hogan stated the minority did not support the approval of the Reservoir Regulating Manual for Lake Hodges Project and preferred to continue this item for more discussion on water rights issues between three of the member agencies.
Director Johnson announced the majority approved the Reservoir Regulating Manual for the Lake Hodges projects as part of the Joint Use Agreement between the San Diego County Water Authority and the City of San Diego for the Emergency Storage Project (Joint use of Lake Hodges Dam and Reservoir), and authorize the General Manager to meet with the Santa Fe Irrigation District, San Dieguito Water District, and the City of San Diego regarding the storage issue and report any modifications to the Reservoir Regulating Manual to the Board within 90 days. Director Ferguson announced items 9-1 and 9-2 had passed in committee.

Legislation, Conservation and Outreach Committee. Director Tu announced all items had passed in committee and a neutral position was adopted on Water Authority sponsor bill AB 2404.

Imported Water Committee. Director Croucher stated there was no reportable action.

Water Planning Committee. Director Muir stated items 9-9 and 9-10 had
been approved in Committee. Chair Steiner announced item 9-8 would be pulled.

Administrative and Finance Committee. Director Wornham announced all action items had passed in committee. He stated the Water Authority received an upgrade from Standard & Poor’s to AA+ from AA. He stated the Water Authority would be going to market due to the favorable market conditions.

9. CONSENT CALENDAR

Chair Steiner announced items 9-3 and 9-8 were pulled. Director Tu moved, Director Johnson seconded, and the motion carried at 99.85% of the vote to approve the amended Consent Calendar.

10. ACTION/DISCUSSION

10-A Strategic Plan Ad Hoc Committee recommendation: Adopt the Strategic Plan.

Director Bowersox moved, Director seconded, and the motion carried unanimously to adopt the Strategic Plan.

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

11. CLOSED SESSIONS

General Counsel Hentschke announced there was no reportable action. Mr. Hentschke stated Director Saunders recused himself from participation from item 11-C.

12. SPECIAL REPORTS

12-A GENERAL MANAGER’S REPORT – Ms. Stapleton reminded the Board of the upcoming Twin Oaks Valley Water Treatment Plant dedication.

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 stated at the last SANDAG meeting 60 speakers spoke on the Super Power Link.

12-E AB 1234 COMPLIANCE REPORTS - Director Bond announced he attended the Water Agency Association Quarterly meeting and heard from Senator Padilla. Director Muir agreed with Director Bond’s report. Director Thompson also spoke on the same meeting.

13. OTHER COMMUNICATIONS

14. ADJOURNMENT
There being no further business to come before the Board, Chair Steiner adjourned the meeting at 4:20 p.m.




_______________________________
Fern M. Steiner
Chair

_______________________________
Mark W. Watton
Secretary

_______________________________
Doria F. Lore, Clerk of the Board

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