MINUTES OF THE FORMAL BOARD OF DIRECTORS' MEETING

June 26, 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, Knutson, Petty, Smith, and Tu. Directors, Lizzul, Morrison, and Pocklington were absent. Director Thompson arrived at 9:20 a.m. Other Board members present were Directors Arant, Bond, Dailey, Lewis, McMillan, Parker, Price, Saunders, Saxod, and Watton. 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, Assistant General Manager Cushman, Deputy General Manager Belock, Deputy General Manager Lanspery, Director of Engineering Stift, Director of Operations and Maintenance Eaton, and Director of Right of Way Rose.

ADDITIONS TO THE AGENDA
Chair Ferguson informed the committee that the General Manager had requested Action/Discussion Item II.2 "Amendment to professional services contract with Black & Veatch Corporation for the ESP - San Vicente Pumping Facilities project" be returned to the Manager's office, and the item would not be discussed at the current Board session.

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 the annual Engineering and Operations Tour was a success and 22 directors participated. They observed the operations of the new Twin Oaks Valley Water Treatment Plant, visited the San Vicente site and were informed about construction progress and how the Emergency Storage Project will operate, and visited a site along the First Aqueduct to observe what was being done to meet the Board's goal to remove encroachments along the Water Authority's right of way in Poway.

DIRECTORS’ COMMENTS
There were no Directors comments.


I. CONSENT CALENDAR

1. Quitclaim of access road easement to underlying property owner.

Staff recommendation: Authorize the quitclaim of the Water Authority's access road easement, located west of the Second Aqueduct right of way, to the underlying property owners of APN 127-110-81, Terry J. Brown and Michael S. Hefner.

2. Purchase of one replacement 24-inch plunger valve from Southwest Valve & Equipment.

Staff recommendation: Approve purchase of one replacement 24-inch plunger valve from Southwest Valve & Equipment for $108,889. Water Authority staff will complete installation of the valve as part of the Valve and Venturi Meter Replacement Program.

3. Emergency Storage Project - San Vicente Pipeline and Aqueduct Interconnect
project.

3-A Amendment to professional services contract with Parsons Water & Infrastructure, Inc., for the ESP - San Vicente Pipeline and Aqueduct Interconnect project.

Staff recommendation: Accept Amendments One through Seven in the amount of $144,800, and approve Amendment Eight for $7,900,000 to provide design and construction support services due to the differing site condition and schedule extension, increasing the contract amount from $14,000,000 to $22,044,800.

3-B Amendment to professional services contract with Jacobs Associates for the ESP - San Vicente Pipeline and Aqueduct Interconnect project.

Staff recommendation: Accept Amendments Six through Ten in the amount of $127,210. Approve Amendment Eleven for $1,600,000 to provide claim and construction support services due to the differing site condition and schedule extension to January 2011, increasing the contract amount from $16,127,210 to $17,727,210.

3-C Change order to Shea-Traylor Joint Venture for the ESP - San Vicente Pipeline and Aqueduct Interconnect project.

Staff recommendation: Approve Change Order 45 for the interim payment, for costs associated with the differing site condition in Reach 4 East, in the amount of $1,038,000 increasing the contract from $12,933,111 to $13,971,111.

4. Emergency Storage Project – Lake Hodges Projects.

4-A Amendment to professional services contract with MWH Americas, Inc. for the ESP-Lake Hodges Pump Station/Inlet-Outlet projects.

Staff recommendation: Accept Amendment Eight in the amount of $248,000. Approve Amendment Nine for $977,000, to provide claim and construction support services due to a schedule extension through November 2009, and increase technical support to start-up and commission the facility, increasing the contract amount from $10,180,000 to $11,157,000.

4-B Amendment to professional services contract with Able Patrol and Guard to provide continued security services for the ESP Lake Hodges projects.

Staff recommendation: Accept Amendment One in the amount of $41,000. Approve Amendment Two for $129,000 to provide security services at the Lake Hodges ESP construction site due to a schedule extension through August 2009, increasing the contract amount from $216,000 to$345,000.

Director Knutson moved to approve the consent calendar, Vice Chair Johnson seconded and the motion passed unanimously.


II. ACTION/DISCUSSION

1. Professional services contract with Parsons/Black & Veatch/Parsons Joint Venture for the ESP - San Vicente Dam Raise and Carryover Storage project.

Staff recommendation: Award a professional services contract to Parsons/Black & Veatch/Parsons Joint Venture, for $28,561,000 to provide in the amount of $27,000,000 for construction management services for the ESP - San Vicente Dam Raise and Carryover Storage project.

Engineering Manager Jerry Reed presented project information that resulted in staff's recommendation to award the professional services contract to Parsons/Black & Veatch/Parsons.

Director Petty moved to approve the staff recommendation, Director Smith seconded and the motion passed. Director Barrett abstained.

2. Amendment to professional services contract with Black & Veatch Corporation for the ESP - San Vicente Pumping Facilities project.

The Board returned this item to the General Manager’s office.

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 9:35 a.m.



LEGISLATION, CONSERVATION AND OUTREACH COMMITTEE

CALL TO ORDER / ROLL CALL
Chair Tu called the Legislation, Conservation and Outreach Committee to order at 9:43 a.m. Committee members present were Chair Tu and Directors Arant, Bond, Dailey, Dion, Hilliker, Muir, Saxod, Watton, and Wornham. Committee members absent were Vice Chairs Morrison and H. Williams and Directors Croucher and K. Williams. Also present were Directors Barrett, Bowersox, Brammell, Ferguson, Hogan, Johnson, Knutson, Lewinger, Lewis, Linden, Martin, McMillan, Parker, Petty, 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, Director of Public Affairs Foster, and Water Resources Manager Roy.

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 stated that the 2007 Annual Report had been distributed. She stated that Water Resources Manager Roy had an announcement on artificial turf. Water Resources Manager Roy stated that the Centers for Disease Control (CDC) had issued a health advisory regarding lead in artificial turf. Based on this advisory, the San Diego County Water Authority is suspending the artificial turf incentive program until further information is available.

DIRECTORS’ COMMENTS
There were no Directors comments.


I. CONSENT CALENDAR

Agreement with San Diego Gas and Electric to participate in a Water/Energy Pilot Program.

Staff recommendation: Authorize the General Manager to enter into an agreement with SDG&E and participating member agencies and customers, for the purpose of implementing a water/energy pilot program.

Director Wornham moved, Director Dailey seconded, and the motion passed unanimously to authorize the General Manager to enter into an agreement with SDG&E and participating member agencies and customers for the purpose of implementing a water/energy pilot program.

II. ACTION/DISCUSSION

1. Legislative Issues.

1-A Report by Carpi and Clay.

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

1-B Adopt positions of:

• SB 691 (Calderon, R.) – Support

• AB 885 (Calderon, C.) – Oppose, unless amended

• AB 1806 (Wolk) – Oppose, unless amended

Staff recommendation: Adopt positions of support on SB 691 (Calderon, R.); Oppose, unless amended, on AB 885 (Calderon, C.) and AB 1806 (Wolk).

Director Bond moved, Director Hilliker seconded, and the motion carried unanimously to accept staff recommendation.

III. INFORMATION

1. Water Conservation Garden report.

Director Lewinger announced that the Fallbrook Public Utility District had become a new partner.

The following items were received and filed:

2. Status report on legislation and legislative positions.

3. Government relations update.

4. Outreach activities for the month of May 2008.

IV. CLOSED SESSION

There were no Closed Sessions items.

V. ADJOURNMENT

There being no further business to come before the Legislation, Conservation and Outreach Committee, Chair Tu adjourned the meeting at 10:20 a.m.

WATER PLANNING COMMITTEE

CALL TO ORDER/ROLL CALL
Chair Lewinger called the meeting to order at 10:25 a.m. Committee members present were Vice Chairs Muir and Saunders, Directors Arant, Barrett, Bowersox, Dailey, Lewis, Linden, Martin, McMillan, Parker, Steiner, and Watton. Also present were Directors Bond, Brammell, Dion, Ferguson, Hilliker, Hogan, Johnson, Knutson, Morrison, Petty, Price, Saxod, Smith, Thompson, 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, Principal Water Resources Specialist Stadler.

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
The Water Authority co-sponsored a “Salinity Seminar” on June 18 which attracted a large turnout of over 70 individuals. Seminar attendees consisted of representatives from water and wastewater agencies, local and state regulatory agencies, local planning agencies and non-governmental organizations. This provided a good indication of how much interest there was in local water supply development. The purpose of the seminar was to raise awareness and engage water agencies, regulatory agencies, and other community stakeholders on salinity issues in the San Diego region, especially related to constraints on recycled water and groundwater development projects in San Diego County. Speakers included Water Authority staff and John Robertus, Executive Director of the San Diego Regional Water Quality Control Board.

Staff is completing a Draft EIR on the Tijuana River Valley Wetlands Mitigation Project which will be ready for public release by late July. The project involves the restoration of 32 acres of wetland on 40 acres currently used for agriculture, and will satisfy the last mitigation requirement for ESP and should provide the majority of the 19 acres of wetland mitigation required for the Carryover Storage Project. It would also provide 13 acres as the foundation for a wetland mitigation banking agreement to cover future projects and O&M activities. Land is provided by the County at no charge per a 2001 agreement.

The Water Planning Committee will hold a public hearing on the project in late August; at a location in the south county.

DIRECTOR’S COMMENTS
There were no Directors comments.

I. CONSENT CALENDAR

1. Environmental Program Manager Contract with Jones & Stokes Associates, Inc.

Staff recommendation: Authorize execution of a professional services agreement with Jones & Stokes to provide Environmental Program Manager consulting services for four years in an amount not-to-exceed $3,000,000.

2. Amend Professional Services Contract with A&N Technical Services, Inc., to provide drought response planning technical assistance and increase contract amount by $50,000.

Staff recommendation: Amend the professional services contract with A&N Technical Services, Inc., to provide drought response planning technical assistance and increase the not-to-exceed contract amount by $50,000 for a total not-to-exceed amount of $75,000.

Director Muir moved, Director Arant seconded and the motion passed unanimously to approve the Consent Calendar.


II. ACTION/DISCUSSION

1. Drought Management Plan.

1-A Drought Management Implementation report.

Mr. Yamada summarized the Governor’s Statewide Drought Proclamation that was effective June 4, 2008. He then compared Lake Oroville’s current conditions with June 2005 levels that showed a significant drop in acre-feet. Mr. Yamada reviewed the Governor’s June 4, 2008, Executive Order and the Department of Water Resources mandate to take immediate actions addressing drought conditions and delivery limitations. He then reviewed the drought response actions and the June 12, 2008, Governor’s proclamation of State of Emergency directive and he briefly summarized the progress of the Drought Response Workgroup and next steps.

2. Report on Status of Member Agency efforts to update existing Drought Response Ordinances.

Mr. Yamada’s report focused on worsening supply conditions, potential for shortages from Metropolitan in 2009, and importance of efficient water use in achieving demand reduction goals, and the timely adoption of updated drought response ordinances by the member agencies.

3. Approve Principles of Understanding between the Water Authority and city of San Diego Regarding Implementation of the San Vicente Dam Raise and Carryover Storage Project.

Staff recommendation: Authorize the General Manager to enter into Principles of Understanding with the city of San Diego for implementation of the San Vicente Dam Raise and Carryover Storage Project.

Mr. Weinberg presented the Principles of Understanding between the Water Authority and the city of San Diego regarding the San Vicente Dam Raise and Carryover Storage Project. He reviewed the agreements and the need to address coordination issues such as defining roles and responsibilities, the reservoir regulating and operating plan, water shed, and drinking water protection. Mr. Weinberg summarized the next steps and the staff recommendation.

Director Muir moved, Director Saunders seconded, Director Barrett abstained and the motion passed unanimously to approve the Principles of Understanding between the Water Authority and the city of San Diego regarding the San Vicente Dam Raise and Carryover Storage Project.

III. INFORMATION

1. Presentation on Integrated Regional Water Management Plan grant funding.

Mr. Stadler gave an oral report on the grant funding award of $25 million dollars in Proposition 50.

2. Lakeside Water District’s proposed Erreca Annexation.

Chair Lewinger asked the committee members to discuss this item with their respective Boards and come back to the Water Authority’s next Board meeting ready to vote on the annexation.

3. Water Resources report.

Information Item 3 was received and filed.

IV. CLOSED SESSION

Mr. Hentschke took the Board into Closed Session at 12:00 p.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
Negotiating Parties: Designated representatives of
Semitropic-Rosamond Water Bank Authority
Under Negotiation: Price and terms of acquisition

2. 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’s
Groundwater banking program.
Agency negotiators: Dennis Cushman, Daniel Hentschke, Bob Campbell, Gordon Hess, Debbie Espe
Negotiating Parties: Designated representatives of Vidler Water
Company, inc., a wholly owned subsidiary of Pico Holdings, Inc,
Under Negotiation: Price and terms of acquisition

The Board came out of Closed Session at 12:50 p.m. Mr. Hentschke stated there was no report.

V. ADJOURNMENT

There being no further business to come before the Water Planning Committee, Chair Lewinger adjourned the meeting at 12:52 p.m.



IMPORTED WATER COMMITTEE

CALL TO ORDER / ROLL CALL
Vice Chair Knutson called the Imported Water Committee to order at 1:32 p.m. Committee members present were Directors Brammell, Ferguson, Lewinger, Linden, Lizzul, Martin, McMillan, Price, Saxod, and Steiner. Directors Croucher, Parker, and Williams were absent. Also present were Directors Arant, Barrett, Bond, Bowersox, Dailey, Dion, Hilliker, Hogan, Johnson, Lewis, Petty, Pocklington, Saunders, Smith, Thompson, Tu, Watton, 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 Chief Chen, and others.

ADDITIONS TO AGENDA
There were no additions to the agenda.

PUBLIC COMMENT
There were no members of the public who wished to address the Committee.

CHAIR'S REPORT
Vice Chair Knutson welcomed new director Elsa Saxod to the Imported Water committee.

DIRECTORS’ COMMENTS
There were no Director’s comments.

I. CONSENT CALENDAR

There were no items on the consent calendar.

II. ACTION/DISCUSSION

1. Presentation on Delta improvements by Randall Neudeck, Special Projects Manager, Metropolitan Water District.

Mr. Neudeck gave a presentation on Bay-Delta activities. He reviewed the water supply status, risks and impacts, resource improvement efforts, and key policy issues that affect the Bay-Delta. Mr. Neudeck also reviewed the Governor’s Delta Vision process and said that the Blue Ribbon Task Force would release a draft strategic plan soon, with the final due in October. He discussed the Bay-Delta Conservation Plan and the short and long term improvement efforts that were being implemented or considered.

Following his presentation, directors asked questions and made comments regarding the Bay-Delta’s levees, the fisheries’ biological opinion, and the dual-intake conveyance approach.

2. MWD Issues and Activities update.

2-A Metropolitan Water District’s Delegates report.

There were no comments from the delegates.

3. Colorado River Programs.

3-A Colorado River Board representative’s report.

Director Knuston stated that the report was available in the pickup packet.

III. INFORMATION

The following item was noted and filed:

1. Metropolitan Water District Program report.

IV. CLOSED SESSION

There were no closed session items.

V. ADJOURNMENT

There being no further business to come before the Imported Water Committee, Vice Chair Knutson adjourned the meeting at 2:36 p.m.



ADMINISTRATIVE AND FINANCE COMMITTEE MEETING

CALL TO ORDER / ROLL CALL
Chair Wornham called the Administrative and Finance Committee meeting to order at 2:42 p.m. Committee members present were Chair Wornham, Vice Chair Hogan, Vice Chair Price, Directors Bond, Dion, Hilliker, Johnson, Lewis, Petty, Pocklington, Smith, and Thompson. Director Saunders arrived at 2:45 p.m. Committee member absent was H. Williams. Also present were Directors Arant, Barrett, Bowersox, Brammell, Daily, Ferguson, Knutson, Lewinger, Linden, Lizzul, Martin, McMillan, Muir, Saxod, Steiner, and Tu. 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, Assistant General Manager Cushman, General Counsel Hentschke, Deputy General Managers Lanspery and Belock, Director of Finance Sandler, Director of Administrative Services Young, Director of Public Affairs Foster.

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 provided a presentation describing actions taken by the Administrative and Finance committee at its June 12, 2008 Special Board meeting. The Committee voted unanimously to: 1) recommend the mid-term budget adjustments; and 2) propose rates and charges for calendar year 2009. The proposal would result in an approximately 11.9 percent increase in rates and charges of treated water. Both items would be considered by the Full Board at the June 26, 2008 formal board meeting.

Chair Wornham commended Mr. Sandler and his staff for their excellent work.

DIRECTORS’ COMMENTS
Director Lewinger asked if the change in the CIP lifetime project budgets of $31 million to Vidler/Semitropic Water Storage Project would affect the actions recommended to the full board. Ms. Stapleton replied that the change would not affect the recommendation.

I. CONSENT CALENDAR

1. Contract with MSC Janitorial Services for janitorial services for the Kearny Mesa and Escondido offices.

Staff recommendation: Exercise option to extend the MSC Janitorial Services contract for 24 months in an amount not-to-exceed $100,560 increasing the total contract amount to $148,377.

Director Johnson moved, seconded by Director Hogan. The motion passed unanimously.

II. ACTION/DISCUSSION

1. Treasurer’s report.

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

Mr. Sandler provided a brief update on the Treasurer’s Report including the status of the Water Authority’s investment portfolio and yields. The Water Authority Series 2008 Certificates of Participation closed on May 21, 2008 and received just under $500 million in proceeds to invest. The closing was accelerated and the money was parked in a short treasury bill while the Water Authority developed its investment strategy. The treasury funds were in the process of being laddered out to meet projected construction expenditures over the next twenty months. As a result, the portfolio yield including bond proceeds was lower than the portfolio yield, excluding bond proceeds.

Mr. Sandler stated interest rates had dropped over the last year as a result of the sub-prime mortgage market, liquidity crisis, and the housing market. Investment income was projected to be down by 25 percent over the multi-year budget period. A factor in the reduction in investment income was the Federal Reserves cut in the federal funds rate by 62 percent since August 2007.

Mr. Sandler stated the three objectives of the Water Authority’s investment policy were safety, liquidity, and yield. At this moment, safety and liquidity were the key priorities.

Chair Wornham reiterated that bond proceeds were parked prudently in the interest of capital preservation and commended Mr. Sandler and his staff on their investment actions during the conditions of the current market. Director Bowersox also commended Mr. Sandler and his staff for their work.

Director Petty moved, seconded by Director Smith. The motion passed unanimously.


III. INFORMATION

The following items were received and filed:

1. Review of Water Authority memberships and annual payment list.

2. Continue “pay as you go” funding for the Water Authority’s Other Post Employment Benefits liability.

3. Controller’s report on monthly financial statements.

4. Board calendar.


IV. ADJOURNMENT

There being no further business to come before the Administrative and Finance Committee, Chair Wornham adjourned the meeting at 2:55 p.m.



FORMAL BOARD OF DIRECTORS’ MEETING OF JUNE 26, 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 Bond 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, Dion, Ferguson, Hilliker, Hogan, Johnson, Knutson, Lewinger, Lewis, Linden, Lizzul, Martin, McMillan, Petty, Pocklington, Price, Saunders, Saxod, Smith, Steiner, Thompson, Tu, Watton, and Wornham. Directors absent were Croucher, Morrison, Muir, Parker, H. Williams, K. Williams and Representative Slater-Price.

3-A Report on proxies received. Director Watton was the proxy for Director Muir.

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

5. APPROVAL OF MINUTES Director Ferguson moved, Director Smith seconded and the motion carried for a total of 93.88% of the vote to approve the minutes of the Special meeting of the Engineering and Operations Committee of May 14, 2008 and the Formal Board of Directors’ meeting of May 22, 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 Appointment of Director. Elsa Saxod representing city of San Diego. Term expires March 7, 2010.

7-B Retirement of Director. Adopt Resolution No. 2008-__ honoring Gregory M. Quist upon his retirement from the Board of Directors.

7-C Appointment of Director. Mitchell S. Dion representing Rincon del Diablo Municipal Water District. Term expires June 20, 2014.

Director Quist was honored for his twelve years of service. Director Wornham moved, Director Smith seconded and the motion carried at 93.88% of the vote to adopt Resolution No. 2008-08 honoring the retirement of Gregory M. Quist. Chair Steiner introduced two new Board members Mitchell S. Dion and Elsa Saxod.

8. REPORTS BY CHAIRS

8-A Chair’s Report – Chair Steiner announced glasses were provided to each Board member to commemorate the recent opening of the Twin Oaks Valley Water Treatment Plant. She also announced the Annual Report had been distributed.

8-B Report by Committee Chairs

Engineering and Operations Committee. Director Ferguson reviewed the action items that had passed in committee. Item 9-10 was returned to the General Manager’s office.

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

Water Planning Committee. Director Lewinger announced all items had passed in committee.

Imported Water Committee. Director Knutson reported there were no action items in the Imported Water Committee and he reviewed the information items.

Administrative and Finance Committee. Director Wornham announced at the Special Administrative and Finance Committee meeting on June 12, 2008 the Committee approved items 9-1 and 10-1. The committee approved items 9-16 and 9-17 in committee today.

9. CONSENT CALENDAR

Director Tu moved, Director Lewinger seconded, and the motion to carry the consent calendar passed at 93.88% of the vote. Director Barrett abstained from items 9-9 and 9-15. Director Saunders voted no on item 9-9.

Director Brammell left the meeting.

10. ACTION/DISCUSSION

Public Hearing: Water Authority rates and charges for fiscal year 2008-2009 and calendar year 2009, and continue the annual Standby Availability Charge for fiscal year 2008-2009 as currently imposed.

Administrative and Finance Committee recommendation: Adopt Ordinance No. 2008-__ setting the rates and charges for delivery and supply of water, use of facilities and provision of services for fiscal year 2007-2008 and calendar year 2008 and adopt Ordinance No. 2008-__ continuing the Water Standby Availability Charge at its current level.

Chair Steiner opened the Public Hearing at 3:20 p.m. There were no members of the public that wished to speak. Director of Finance/Treasurer Sandler provided a brief presentation. Chair Steiner closed the Public Hearing at 3:25 p.m.

Director Price moved, Director Dailey seconded and the motion to adopt Ordinance No. 2008-03 setting the rates and charges for delivery and supply of water, use of facilities and provision of services for fiscal year 2007-2008 and calendar year 2008 and adopt Ordinance No. 2008-04 continuing the Water Standby Availability Charge at its current level passed at 92.27% of the vote.

11. CLOSED SESSIONS

Mr. Hentschke reviewed the recommendations as outlined during the Water
Planning Closed Session:

Authorize staff to acquire storage/recovery rights in the Semitropic Rosamond
Water Bank Authority JPA for $15,000,000 consistent with the previously approved term sheet and parameters outlined in the Water Planning Committee closed session, and authorize the General Manager to execute appropriate agreements.

Director Lewinger moved, Director Smith seconded and motion carried at 92.27% of the vote to approve the recommendation as stated above. Director Barrett voted no on this item.

Authorize staff to acquire storage/recovery rights of Vidler in the Semitropic Water Banking and Exchange Program for $11,749,900 and stored water proved transferable to SDCWA at $300/acre foot and other terms discussed in the Water Planning Committee closed session, and authorized the General Manager to execute appropriate agreements.

Director Lewinger moved, Director Wornham seconded and motion carried at 92.27% of the vote to approve the recommendation as stated above. Director Saunders abstained due to a conflict of interest due to ownership in Pico Holdings, Inc.

12. SPECIAL REPORTS

12-A GENERAL MANAGER’S REPORT – Ms. Stapleton reminded the Board there would be no Special Board meeting on July 10, 2008.

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

12-C ACWA-JPIA REPORT – Director Linden reported that the Water Authority’s Worker’s Compensation policy would be terminated on June 30, 2008. He announced he would be resigning from the JPIA Insurance Committee.

12-D SANDAG REPORT – Director Dailey reviewed the upcoming SANDAG Board meeting. She announced at the upcoming Council of Water Utilities meeting SANDAG staff that complies demographics would be speaking.

SANDAG BORDERS/REGIONAL PLANNING COMMITTEE –
No report was given.

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

13. OTHER COMMUNICATIONS

Director Barrett requested information on webcasting of Water Authority Board meetings. Ms. Stapleton stated staff would gather information and report back to the Board.

Director Hilliker thanked Water Authority staff for the tour that was provided to the Lakeside Water District and Lakeside community members on the San Vicente Dam Raise.

14. ADJOURNMENT
There being no further business to come before the Board, Chair Steiner adjourned the meeting at 3:42 p.m.



_______________________________
Fern M. Steiner
Chair

_______________________________
Mark W. Watton
Secretary

_______________________________
Doria F. Lore, Clerk of the Board

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