MINUTES OF THE ADMINISTRATIVE AND FINANCE COMMITTEE MEETING
BUDGET MEETING FOR GENERAL MANAGER’S RECOMMENDED
MULTI-YEAR 2005-2006 AND 2006-2007 BUDGET
JUNE 8, 2005
CALL TO ORDER/DETERMINATION OF A QUORUM
Chair Dixon called the Administrative and Finance Committee Budget Meeting
to order at 2:09 p.m. Committee members present were Chair Dixon, Vice Chairs
Dailey and Tu, Directors Brammell, Johnson, Knutson, Parker, Price, and Steiner.
Committee members absent were Bowersox and Representative Slater-Price. Also
present were Directors Bond, Ferguson, Lewinger, Linden, Parker, Pocklington,
Saunders, Sundram, and Thompson. At that time, there was a quorum of the full
Board, and the meeting was conducted as a meeting of the Board however, only
committee members participated in the vote. Staff present was General Manager
Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant
General Manager Cushman, Director of Finance/Treasurer Brust, Director of Engineering
Economides, Director of Water Resources Weinberg, Director of Operations &
Maintenance Eaton, Director of Imported Water Hess, Director of Human Resources
Glover, Director of Public Affairs Jacoby, Director of Administrative Services
Young, Director of Right of Way Rose, Financial Services Manager/Assistant Treasurer
Warren, Rate and Debt Administrator Delin, Accounting Supervisor McBroome and
Budget Officer Ramsey.
PUBLIC COMMENT
There were no members of the public who wished to address the Committee.
Director Williams arrived at 2:21 p.m.
PRESENTATION OF THE MULTI-YEAR 2005-2006 AND 2006-2007 GENERAL MANAGER’S
RECOMMENDED BUDGET
Directors Muir and Watton arrived at the meeting at 2:25 p.m.
Mr. Weinberg presented the Water Purchases Budget and discussed hydrological
and growth implications related to demand on supply for Fiscal Years 2005-2006
and 2006-2007.
Ms. Stapleton reviewed the Operating Budget based upon the Board’s priorities
which were categorized under: Water Supply, Water Facilities, and Core Business.
She indicated that a budget of $66.1 million was recommended for the operating
component of the Water Authority’s budget over the next two years which
is about 2.93% greater than Fiscal Years 2004 and 2005 budget. Ms. Stapleton
also discussed significant department shifts which, without any cost shifts,
better realigned responsibilities to be consistently managed within the respective
departments.
Mr. Lanspery presented the Water Facility issues including new operational
costs for new facilities coming online.
Director Bond requested that staff use projected actuals vs. the adopted budget
to relay increases or decreases. Director Muir also agreed.
Mr. Lanspery continued with Core Business issues with the implementation of
the four-year Memorandum of Understanding for the Retirement Implementation.
He stated that the pension benefits were critical to obtain the four-year deal.
He indicated that next May or June, the Board will be asked to again amend the
plan which is a requirement of CalPERS for the “2.5% @ 55” benefit
to be implemented.
He discussed Information Technology and its priorities for the next two years
that included the upgrade to PeopleSoft thus providing for the ability to interact
with Primavera and the upgrade to the MAXIMO system.
Mr. Cushman proposed the need for the Water Authority to have regular and consistent
representation in Sacramento. He stated that five of the largest urban water
contractors currently have staff in Sacramento and other large districts are
able to commute easily due to proximity. He discussed the need for a Government
Relations Manager which is being recommended as well as a Sacramento office
to support the Water Authority at the policy level.
Ms. Stapleton presented some of the Water Supply considerations including the
IID Habitat Conservation Plan as required under the terms of the Environmental
Cost Sharing Agreement.
Mr. Cushman presented Water Conservation. He talked about the success that
the Water Authority has had in funding indoor-based programs with the need to
move to landscape conservation.
Ms. Stapleton reviewed the recommended 8.75 new staff positions and the 8.00
converted Limited Duration Positions over the next two fiscal years in order
to organizationally execute the Board’s Priorities.
Vice Chair Tu left at 3:46 p.m.
Director Bond left at 3:50 p.m.
Director Sundram left at 3:52 p.m.
Vice Chair Dailey motioned and Director Muir seconded, and the following motion
carried, as follows:
The Administrative and Finance Committee recommends to the Board the adoption
of the revised Capital Improvement Program budget of $3.315B, and the total
FY’s 2006 and 2007 Recommended Budget, as follows:
Revised CIP $ 570.5M
Water Purchases 519.0M
Debt Service 178.3M
Operating 66.1M
Equipment Replacement Fund 3.4M
QSA Environmental 0.7M
TOTAL $ 1.338B
Director Saunders requested that funding for Recycling, Local Projects Program,
and the issue of incentives be added to the budget in 2006 or 2007.
Mr. Cushman presented the budget for the Conservation Garden located at Cuyamaca
College and presented three alternatives: 1) take over the Garden and study
the North County Facility more in depth; 2) assist the Garden in planning, research,
and additional analyses; and 3) continue the status quo by continuing the JPA
share-funding approach.
Director Muir motioned to support Alternative #3; Vice Chair Dailey seconded.
Director Muir modified his motion to support Alternative #3 by including further
research; Vice Chair Dailey seconded the motion.
Directors Saunders and Parker left at 4:13 p.m.
Chair Dixon asked for the motion to be restated, discussion ensued, call for
the vote, and the motion carried unanimously as follows:
To fund the Garden at $100,000, continue to provide staff support to the Garden,
and create a Board workgroup to study the Garden proposal and related opportunities
for outdoor conservation.
ADJOURNMENT
Chair Dixon adjourned the meeting at 4:28 p.m.
_______________________________
Jesse Dixon
Chair
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