San Diego County Water Authority - Board meeting minutes

ENGINEERING AND OPERATIONS COMMITTEE
CALL TO ORDER / ROLL CALL
Chairman Knutson called the Engineering and Operations Committee to order at 9:00 a.m. Committee members present were Chair Knutson, Vice Chairs Ferguson and Johnson and Directors Brammell, Broomell, Croucher, Lewanski, Lewinger, Loveland, Sundram, Thompson, and Tu. Committee members absent were Directors Inzunza and Rogers. Also present were Directors Bond, Dailey, Dixon, Irvin, Lewis, Martin, Muir, Saunders, Watton, and Williams. 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 Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Operations and Maintenance Eaton, Director of Engineering Economides, Director of Right of Way Rose, Director of Public Affairs Jacoby and Assistant Director of Engineering Stift.

ADDITIONS TO AGENDA
Mr. Hentschke reported a matter requiring immediate Board action had come to the attention of the Water Authority after the agenda had been prepared, and asked the Committee to consider adding the item to its agenda.

Director Johnson moved, Director Broomell seconded, and the motion carried unanimously to add as E&O Committee Agenda Action Item 2:

17160 Cloudcroft Drive, Poway Encroachment Permit for 100 Square Foot Encroachment of a Portion of House in the Right of Way.

PUBLIC COMMENT
Chairman Knutson recognized members of the public who wished to address the Board, and stated Mr. P. Shea and Mr. B. Barnum would be called to speak regarding the San Vicente Pipeline and Aqueduct Interconnect contract award, and Mr. J. Krehbiel would be called to speak regarding the residential encroachment when those topics were reached on the agenda.

CHAIR’S REPORT
Chairman Knutson recognized Mr. Eaton, who gave a presentation regarding the gate valve malfunction at the Robert A. Skinner Treatment Plant on June 22, when thirty-three acre-feet of treated water was spilled. Mr. Eaton stated that upon notification, the Water Authority activated the Emergency Operations Center to communicate with all water agencies and appropriate San Diego County departments. The Treated Water Demand Management Plan was put into action, and working with MWD and member agencies' operations managers, sufficient treated water was delivered without incident to the public. Mr. Jacoby reported that communication among the Water Authority, MWD, and surrounding water agencies went smoothly, and media advisories were well coordinated.

1. Professional Services Contract for security services for Emergency Storage Project construction activities near the San Vicente Reservoir.
Staff recommendation: Award a Professional Services Contract to Able Patrol and Guard for $725,000 for construction site security services for the ESP construction activities near the San Vicente Reservoir.

2. Notice of Completion for the Moreno Lakeside Pipeline Project.
Staff recommendation: Authorize the General Manager to accept the Moreno Lakeside Pipeline as complete, record the Notice of Completion, and release all due funds held in retention to The Hartford following expiration of the Notice of Completion period.

Chairman Knutson called for a motion to approve the Consent Calendar. Vice Chairman Johnson moved, Director Croucher seconded, and the motion carried unanimously.

II. ACTION/DISCUSSION
1. Construction Contract for the San Vicente Pipeline and Aqueduct Interconnect and CIP Budget increase.
Staff recommendation: Award a Construction Contract to Shea/Traylor Joint Venture for $198.4 million for the San Vicente Pipeline and Aqueduct Interconnect.

Sr. Engineer Schuler made a presentation about the bid processes, and explained the economic and risk factors that led to higher bid amounts than were expected.

Mr. Shea, President of J. F. Shea Company, introduced himself and Mike Traylor of Traylor Bros., and stated that they, as Shea/Traylor Joint Venture, were currently working in partnership with the Water Authority to keep costs in line, or reduced on this project.

Mr. Barnum of Associated General Contractors spoke in support of the construction contract award, and extended AGC's appreciation to the Water Authority for its financial assistance to the mentor/protégée program with the City of San Diego.

Vice Chair Ferguson moved, Vice Chair Johnson seconded, and the motion to approve the staff recommendation carried unanimously.

Right of Way Director Rose gave a presentation about the encroachment on the Water Authority's Pipeline 2 right of way.

Director Lewis asked how staff would know if changes were made to the residence in the future. Mr. Rose replied that staff would coordinate with the City of Poway's building permit department, and the encroachment permit would be recorded against the property to inform any future buyer of the existing terms and conditions.

The property owner, Mr. J. Krehbiel, asked the Board to consider selling him the property easement rather than approve the encroachment permit.

2. 17160 Cloudcroft Drive, Poway – Encroachment Permit for 100 Square Foot Encroachment of a Portion of House in the Right of Way.
Staff recommendation:
A. Add this matter to the agenda because there is a need to take immediate
action and the need to take action came to the attention of the Water
Authority after the agenda was posted, and
B. Approve an Encroachment Permit requiring the encroaching portion of the
house would be removed upon:
1. Remodeling or reconstruction of any portion of the house in excess
of 25% of the home's gross area; or
2. Any remodeling or reconstruction of the room containing the
encroachment.

Director Lewinger moved, Director Croucher seconded, and the motion to approve the staff recommendation carried unanimously.

III. INFORMATION
The following Information item was received and filed.
1. Right of Way Management activities report.

IV. ADJOURNMENT
There being no further business to come before the Engineering and Operations Committee, Chairman Knutson adjourned the meeting at 9:55 a.m.

ADMINISTRATIVE AND FINANCE COMMITTEE
CALL TO ORDER / ROLL CALL
Chair Dixon called the Administrative and Finance Committee meeting to order at 10:05 a.m. Committee members present were Chair Dixon, Vice Chairs Dailey and Tu, and Directors Brammell, Johnson, Knutson, Muir, Parker, Price, Steiner, Watton, and Williams. Committee members absent were Director Bowersox and Representative Slater-Price. Also present were Directors Bond, Broomell, Croucher, Ferguson, Haddad, Irvin, Lewanski, Lewinger, Lewis, Linden, Loveland, Martin, Pocklington, Rhinerson, 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 Administrative Services Young, Director of Engineering Economides, and Director of Human Resources Glover. Also present was Cathy Bando from RBC Dain Rauscher.

PUBLIC COMMENT
Chair Dixon announced the speakers would be introduced when the item would be addressed.

CHAIR’S REPORT
Chair Dixon reported the budget meetings were held on June 7 and 8, 2005. He announced Internet access is available for Board members.

I. CONSENT CALENDAR
1. Treasurer’s report.
Staff recommendation: Note and file monthly Treasurer’s report.

2. Approval of the transfer of funds within the Operating Budget for Fiscal
Years 2004 & 2005.
Staff recommendation: Approve the transfer of the funds within the Fiscal Years 2004 & 2005 Operating Budget from Water Resources to Right of Way in the amount of $125,000.

3. Adopt resolution approving the extension of the existing Liquidity Facility
with Bayerische Landesbank (“BLB”) for the Water Authority’s
commercial paper program.
Staff recommendation:
A. Adopt resolution approving the extension of the Liquidity Facility commitment with BLB at the new terms and fees as negotiated between staff and BLB.
B. Approve certain financing documents relative to this commitment extension.

Director Muir moved items #1 and #2 and pulled item #3. Director Price seconded and the motion carried unanimously to approve items #1 and #2.

Director Muir stated his concern was the Water Authority was purchasing too much commercial paper, which created too much exposure as interest rates rise. Ms. Brust stated the Water Authority was not currently issuing any additional commercial paper

Director Muir moved to approve item #3, Director Dailey seconded and the motion carried unanimously.

II. ACTION/DISCUSSION
1. Discussion of options regarding when the Board should consider whether
to include a project labor agreement specification on public works
projects.
Alternatives:
A. Adopt Ordinance No. 2005-__, an ordinance of the Board of
Directors of the San Diego County Water Authority amending
Section 4.08.060 of the Administrative Code to require board
consideration whether to include a project labor agreement
specification on public works projects, including design-build
projects, having a contract amount of $100 million or greater.
B. Do not adopt a policy setting a threshold of $100 million for
requiring a Board determination for including a project labor
agreement specification.
C. Set some other threshold for requiring a Board determination.
D. Clarify the PLA determination by the Board shall not include
design-build projects.

The following members of the public were recognized by Chair Dixon after filling out a speaker request form:

Mr. B. Barnum from the Associated General Contractors stated his organization was opposed to project labor agreements.

Mr. C. Hartnet from the San Diego County Building and Construction Trades Council spoke in favor of project labor agreements and their benefits.

Mr. A. Berg from the National Electrical Contractors Association spoke in favor of alternative A., which required Board consideration whether to include a project labor agreement specification on public works projects, including design-build projects, having a contract amount of $100 million or greater.

Mr. G. Hawkins from the Associated Builders and Contractors stated he felt the consideration of project labor agreements was a needless action.

Mr. S. Friar from the Associated Builders and Contractors as well as the Statewide Coalition for Fair Employment in Construction spoke in opposition of project labor agreements.

Director Muir moved, Director Watton seconded and the motion carried unanimously to adopt alternative A:

Adopt Ordinance No. 2005-__, an ordinance of the Board of
Directors of the San Diego County Water Authority amending Section
4.08.060 of the Administrative Code to require board consideration
whether to include a project labor agreement specification on public works
projects, including design-build projects, having a contract amount of
$100 million or greater.

2. Adopt General Manager’s “Recommended Multi-Year Budget Fiscal Years 2005-2006 and 2006-2007” (Volume I: Operating and Volume II: Capital Improvement Program) and make appropriations in the amount of $1.338 billion consistent with the budget.
Administrative and Finance Committee recommendation:
Adopt Resolution No. 2005-_____, a Resolution of the Board of Directors of the San Diego County Water Authority approving the “General Manager’s Recommended Multi-Year Budget Fiscal Years 2005-2006 and 2006-2007” (Volume I: Operating and Volume II: Capital Improvement Program) and making appropriations in the amount of $1.338 billion consistent with the approved budget; and establish new and revised project budgets within the Capital Improvement Program increasing the program to $3.315 billion

Ms. Stapleton made a presentation reviewing Fiscal Years 2005-2006 and 2006-2007 General Manager’s Recommended Budget. She reviewed the recommendations from the Administrative and Finance Committee, which included policy changes, program additions, and new staff positions.

Director Muir stated he wanted to make an addition to the staff recommendation to add an additional $100,000 to the Recommended Budget for the purposes of the Conservation Ad Hoc Committee. The Ad Hoc Committee would evaluate opportunities for conservation efforts and would return to the Board with recommendations for these expenditures.

Director Watton seconded the amendment. The amendment passed. Directors Dailey, Dixon, and Williams opposed.

Adopt Resolution No. 2005-_____, a Resolution of the Board of Directors of the San Diego County Water Authority approving the “General Manager’s Recommended Multi-Year Budget Fiscal Years 2005-2006 and 2006-2007” (Volume I: Operating and Volume II: Capital Improvement Program) and making appropriations in the amount of $1.338 billion consistent with the approved budget; and establish new and revised project budgets within the Capital Improvement Program increasing the program to $3.315 billion; and to add an additional $100,000 to the Recommended Budget for the purposes of the Conservation Ad Hoc Committee. The Ad Hoc Committee would evaluate opportunities for conservation efforts and would return to the Board with recommendations for these expenditures.

3. Public Hearing to adopt increased Water Rates and Charges consistent with
Budget for Fiscal Year 2005-2006 and Fiscal Year 2006-2007 and continue the Water Standby Availability Charge as currently imposed.
Staff recommendation: Adopt Ordinance No. 2005-_____, an ordinance of the Board of Directors of the San Diego County Water Authority setting rates and charges for the delivery and supply of water, use of facilities and provision of services. Adopt Ordinance No. 2005-____, an ordinance of the Board of Directors of the San Diego County Water Authority fixing a Water Standby Availability Charge on land within the boundaries of the Water Authority for Fiscal Year 2005-2006 at the current amount of $10 per acre or parcel less than an acre.

There were no members of the public who wished to address the
Committee. Ms. Brust made a presentation reviewing the proposed rates and charges.

Director Brammell requested the Committee consider the following amendment
to the motion:

Should the rates for the Metropolitan Water District be lower in the Calendar
Year 2007 than the calculations that were used for the Water Authority’s rates, the Water Authority’s rates would be decreased accordingly.

Director Johnson moved, Director Tu seconded and the amended motion carried
unanimously to:

Adopt Ordinance No. 2005-_____, an ordinance of the Board of Directors of the San Diego County Water Authority setting rates and charges for the delivery and supply of water, use of facilities and provision of services. Adopt Ordinance No. 2005-____, an ordinance of the Board of Directors of the San Diego County Water Authority fixing a Water Standby Availability Charge on land within the boundaries of the Water Authority for Fiscal Year 2005-2006 at the current amount of $10 per acre or parcel less than an acre, and should the rates for the Metropolitan Water District be lower in the Calendar Year 2007 than the calculations that were used for the Water Authority’s rates, the Water Authority’s rates would be decreased accordingly.

4. Adopt Resolution No. 2005_____approving Fiscal Years 2006 and 2007 Classification and Salary Schedules, and Salary Tables for determining compensation of Water Authority employees.
Staff recommendation: Adopt Resolution No. 2005 - ___ approving the Fiscal Years 2006 and 2007 Classification and Salary Schedules, and Salary Tables for determining compensation of Water Authority employees.

Director Tu moved, Director Steiner seconded, and the motion carried unanimously to approve the 2006 and 2007 classification and salary schedules, and salary tables for determining compensation of Water Authority employees.

There being no further business to come before the Administrative and Finance Committee, Chair Dixon adjourned the meeting at 11:40 a.m.

CALL TO ORDER/ROLL CALL
Chair Haddad called the Water Planning Committee meeting to order at 11:45 a.m. Committee members present were Vice Chairs Lewinger and Watton, Directors Dixon, Irvin, Linden, Loveland, Martin, Pocklington, Rhinerson, Saunders and Sundram. Committee members Quist and Rogers were absent. Also present were Directors Bond, Brammell, Broomell, Dailey, Ferguson, Johnson, Knutson, Lewanski, Muir, Price, Thompson, and Williams. 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. Director Quist arrived at 12:20 p.m. Staff present was General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Water Resources Weinberg, Water Resources Manager Purcell, Seawater Desalination Program Manager Yamada, and Principle Water Resources Specialist Friehauf.

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

CHAIR’S REPORT
Chair Haddad briefed the Committee on media coverage and stated that the Water Authority had very positive coverage on activities that fell within its purview. The Water Authority had print and television coverage on the South County Seawater Desalination study presented to the Committee last month as a result of a public hearing meeting sponsored by the International Boundary and Water Commission, and a very complimentary article in the Union Tribune on the Manchester Wetlands Creation Project that the Water Authority is constructing near Encinitas and the San Elijo Lagoon as mitigation for the Emergency Storage Project.

Chair Haddad followed up on a presentation received from a Department of Water Resources (DWR) representative on the Plan Update. The DWR held a public workshop at the Water Authority June 14, 2005 to present information and receive public comment on the 2005 California Water Plan Update. According to DWR, this was a strategic plan with goals, recommendations, and actions for meeting the challenges of providing a sustainable water use in the face of uncertainty. Attendees at the workshop included representatives of water agencies, environmental groups, legislative offices and consulting firms. Chair Haddad thanked Directors Lewinger and Daily for being present.

I. CONSENT CALENDAR
1. Amend and approve a professional services contract with Greystone Environmental Consultants, Inc., for QSA Transfer Program Environmental Support Services in an amount not-to-exceed $400,000.
Staff recommendation: Award an amendment to the professional services
contract with Greystone Environmental Consultants, Inc., to provide
environmental support services for an amount not-to-exceed $400,000.

Director Pocklington moved, Director Irvin requested Item #1 be pulled from the consent calendar for discussion. Director Irvin seconded the motion for the remainder of the consent calendar.

Director Irvin requested the Water Authority reexamine the policy of not opening all cost proposals when awarding professional service contracts and asked the question of legal counsel was it policy or was it law? Mr. Hentschke stated that discussions have commenced with staff and will investigate and report back to the Board. Ms. Stapleton stated that the findings would be brought back to the Administrative and Finance Committee as to how the Water Authority dealt with professional service contracts. Director Irvin suggested the Water Authority look at the contracts and compete the contracts or re-compete them rather than amend, and not let contracts go beyond a five-year period unless that was clearly stipulated in the original contract.

2. Approve a professional services contract with Anchor Environmental CA, L.P., to write the Integrated Regional Water Management Plan in an amount not-to-exceed $250,000.
Staff recommendation: Award a professional services contract to Anchor Environmental CA, L.P., to write the IRWM Plan in an amount not-to-exceed $250,000.

3. Authorize Resolutions for Integrated Regional Water Management Plan Grant Application, Step 1.
Staff recommendation: Authorize a resolution to file the Integrated Regional
Water Management Plan Grant Application, Step 1.

Director Irvin moved, Director Loveland seconded and the motion carried unanimously to approve the Consent Calendar.

II. ACTION / DISCUSSION
1. Request Metropolitan Water District of Southern California set formal terms and conditions for the proposed Peaceful Valley Ranch Annexation.
Staff recommendation: Adopt Resolution No. 2005-__requesting formal terms and conditions from Metropolitan for the Peaceful Valley Ranch annexation.

Ms. Friehauf provided brief background information on the proposed annexation, followed by a discussion on the recommended action before the Committee.

Director Lewinger made a motion to amend the staff recommendation to include a request that Metropolitan place a condition on this annexation that no meters be placed prior to either the expansion of the Skinner Filtration Plant or the Twin Oaks Valley Treatment Plant whichever happens first. This amendment was seconded by Director Linden. Director Saunders stated that he would not support the motion and requested a condition be placed with the requirement to do recycled water. Director Lewinger said he would consider tabling the item until after the September 9 Board Retreat. Director Watton suggested that the Committee move forward on the item and have further discussion at the Board retreat. Director Irvin called for the question. The call for the question carried unanimously. Director Pocklington moved staff recommendation, Director Saunders seconded, Director Dixon and Rhinerson abstained, and the motion carried.

2. Regional Seawater Desalination.
2-A Update on Desalination at Encina Power Station

Mr. Weinberg briefed the committee on the status of the Regional Seawater Desalination Project at Encina. At the request of City Councils of Poway, La Mesa, and Escondido, staff provided presentations on the Water Authority’s Inter Agency Agreement with Carlsbad and the Water Authority’s desalination activities. There were public meetings held in the north county area on Desalination Conveyance Facilities in association with the Water Authority’s EIR. Staff met with representatives of the agriculture industry to talk about desalination.

Chair Haddad stated that Items #2B and 2C would be consolidated and Mr. Yamada will brief the committee regarding these items.

2-B Approve amendment to the Contract with RBF Consulting, Inc., for seawater desalination environmental review and compliance services in an amount not-to-exceed $1,350,000.
Staff recommendation:
Authorize execution of a second amendment to contract in an amount not-to-exceed $1,350,000 with RBF Consulting, Inc., for seawater desalination environmental review and compliance services.

2-C Approve Amendment to Contract with Parsons Brinckerhoff Quade and Douglas, Inc.
Staff recommendation:
Authorize execution of an eighth amendment to the contract in an amount not-to-exceed $490,000 with PB, for engineering and technical support services for the Regional Seawater Desalination Project at the Encina Power Station and technical support for the planned seawater desalination feasibility study at San Onofre.

Mr. Yamada briefed the Committee on both contract amendments that were primarily in support of the Regional Project EIR. The proposed contract amendment for RBF Consulting encompasses expanded studies for an additional on-site alternative location and minor conveyance alignment changes, NEPA compliance, and permitting. The proposed contract amendment for PBQ&D was for additional EIR engineering support and support for the San Onofre full feasibility study.

Director Pocklington moved, Director Martin seconded. Director Rhinerson summarized the discussion and called for the question, Director Irvin seconded the motion to call for the question and approval of the staff recommendation of Action/Discussion Items #2B and 2C carried unanimously.

Chair Haddad requested Mr. Hentschke take the committee into closed session at 12:20 p.m.

1-C CLOSED SESSION:
Conference with Real Property Negotiator
Government Code §54956.8
Property: Property interests for a regional desalination
project at the Encina Power Plant site in the
City of Carlsbad
Agency Negotiators: Maureen Stapleton, Daniel Hentschke,
Ken Weinberg
Negotiating Parties: Cabrillo Power, LLC;
Poseidon Resources, Inc.
Under Negotiations: Price and terms of acquisition

The committee came out of closed session at 1:25 p.m. At that time, there was nothing to report.
III INFORMATION
The following item was received and filed:
1. Water Resources Report.

IV ADJOURNMENT
There being no further business to come before the Water Planning Committee, Chair Haddad adjourned the meeting at 1:30 p.m.

LEGISLATION, CONSERVATION AND OUTREACH COMMITTEE
Chair Steiner called the Legislation, Conservation and Outreach Committee to order at 2:03 p.m. Committee members present were Chair Steiner, Vice Chairs Croucher and Irvin, Directors Bond, Dailey, Ferguson, Lewanski, Lewis, Price, Rhinerson, Thompson and Williams. Committee members absent were Directors Inzunza and Jaeschke. Also present were Directors Broomell, Dixon, Johnson, Lewinger, Linden, Loveland, Martin, Muir, Parker, Pocklington, Quist, Saunders, Sundram 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, Deputy General Manager Lanspery, Assistant General Manager Cushman and Director of Public Affairs Jacoby.

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

CHAIR’S REPORT
Chair Steiner reminded the board that as the weather warms up, water usage increases and there is still the need to conserve water.

I. CONSENT CALENDAR
1. Affirm positions of Support on AB 1466 (Laird) Tamarisk Plant control and Support on SB 820 (Kuehl) Water.
Staff recommendation: Affirm positions of Support on AB 1466 (Laird) Tamarisk Plant Control and Support on SB 820 (Kuehl) Water.

Director Irvin moved, Director Dailey seconded, and the motion carried unanimously to accept staff recommendation.

II. ACTION/DISCUSSION
1. Amendment to Professional Services Contract with Katz & Associates for continued community outreach on CIP projects.
Staff recommendation: Authorize the General Manager to execute the Fifth Amendment to the Processional Services Contract with Katz & Associates to:
1-A. Amend the contract with Katz & Associates to provide community outreach services on CIP Master Plan related projects through December 2005 and allocate CIP funding in the amount of $123,000; and
1-B. Amend the scope of work to extend the Katz & Associates contract from December 2005 to December 2007 to continue community outreach on these CIP projects and allocate funding in the amount of $460,000

Director Dailey moved, Director Ferguson seconded, and motion carried to accept staff recommendation. Director Croucher opposed.

Director Muir moved, Director Dixon seconded, and motion carried to authorize the share of the Water Authority dues to the Water Conservation Garden JPA to be modified in accordance with the revised JPA dues structure in an amount not to exceed $100,000 for Fiscal Year 2006 and refer the matter of the tiered dues structure, Fiscal Year 2007 appropriation, and other Water Conservation Garden issues to the Conservation Ad Hoc Committee.

2-B Water Conservation Garden report.
Director of Public Affairs Jacoby gave an overview and background on the garden.

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

1. Status report on Legislation and Legislative positions
2. Peak Treated Water Demand Management Plan update.
3. Outreach activities for the month of May.

IV. ADJOURNMENT
There being no further business to come before the Legislation, Conservation and Outreach Committee, Chair Steiner adjourned the meeting at 2:58 p.m.

IMPORTED WATER COMMITTEE
CALL TO ORDER / ROLL CALL
Chairman Muir called the Imported Water Committee to order at 3:02 p.m. Committee members present were Directors Bond, Bowersox, Broomell, Lewis, Linden, Martin, Parker, Pocklington, Quist, and Saunders. Committee members absent were Directors Haddad, Jaeschke, and Representative Slater-Price. Also present were Directors Brammell, Croucher, Dailey, Dixon, Ferguson, Lewinger, Loveland, Price, Rhinerson, Steiner, Thompson, Tu, Watton, and 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 included General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Imported Water Hess, and others.

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

II. ACTION/DISCUSSION
1. MWD issues and activities update.
1-A Update on MWD’s Diamond Valley Lake Recreation program.

Director Steiner reported on the June 13 and 14, 2005 MWD Board meetings that she attended with Directors Tu and Irvin.

The Delegates discussed an upcoming workshop to be held by MWD Chairman Bannister to discuss growth issues, rate structure integrity, preferential rights, and other issues. The date had not yet been set, but a two-day workshop in September was envisioned. Also discussed were issues related to MWD’s labor contract negotiations and MWD CEO Underwood’s health.

Director Bond discussed ongoing issues regarding Upper Basin releases on the Colorado River and that the Secretary of the Interior stated that the 2005 annual operating plan releases would not be reduced.

3. CLOSED SESSION:
Conference with Legal Counsel – Anticipated Litigation Government Code §54956.9(b)
Three potential cases

The Imported Water Committee reconvened at 3:45 p.m. Mr. Hentschke stated that the Committee discussed the Closed Session item and that there was no action to report.

Principle Water Resources Specialist Stadler gave a presentation on the financing
plan for CALFED.

IV. ADJOURNMENT
There being no further business to come before the Imported Water Committee, Chairman Muir adjourned the meeting at 3:47 p.m.

1. CALL TO ORDER. Chairman Bond called the Formal Board of Director’s
meeting to order at 3:50 p.m.

3. ROLL CALL, DETERMINATION OF QUORUM. Secretary Lewis called roll. Directors present were Bond, Brammell, Broomell, Croucher, Dailey, Dixon, Ferguson, Lewinger, Lewis, Linden, Loveland, Martin, Muir, Parker, Pocklington, Price, Rhinerson, Saunders, Steiner, Sundram, Thompson, Tu, Watton, and Williams. Directors absent were Bowersox, Haddad, Inzunza, Irvin, Jaeschke, Johnson, Knutson, Lewanski, Quist, Rogers, and Representative Slater-Price.

3-A Report on proxies received. Director Broomell was the proxy for Director Knutson.

5. APPROVAL OF MINUTES. Director Muir moved, Director Parker seconded and the motion carried for a total of 86.43% of the vote, to approve the Minutes of the Special Imported Water Committee meeting of May 12, 2005, the Engineering and Operations Committee meeting of May 16, 2005 and the Formal Board of Directors’ meeting of May 26, 2005. Director Lewis abstained.

6. OPPORTUNITY FOR MEMBERS OF THE PUBLIC WHO WISH TO
ADDRESS THE BOARD ON MATTERS WITHIN THE BOARD’S
JURISDICTION. There were no public speakers.

7. PRESENTATIONS & PUBLIC HEARINGS
7-A San Diego Business Journal and Wells Fargo Bank “2005 Multi-Cultural
Heritage Award.”
Chair Bond announced that this would be deferred to the July Board meeting.
7-B SCOOP – Paths to Partnerships Scholarship Program presentations.
Ms. Yanushka, SCOOP Manager presented the scholarship recipients.

8. REPORTS BY COMMITTEE CHAIRS
Engineering and Operations Committee. Director Ferguson announced items 9-1 through 9-3 were approved and item 9-20 was added to the agenda.
Administrative and Finance Committee. Director Dixon announced items 9-4 through 9-10 were passed. He announced item 9-8 was amended to add an additional $100,000 to the Recommended Budget for purposes of the Water Conservation Garden Ad Hoc Committee. The Ad Hoc Committee would evaluate opportunities for conservation efforts and would return to the Board with recommendations for these expenditures. In addition, item 9-9 was amended to add that should the rates for the Metropolitan Water District be lower in the year 2007 than the calculations that were used for the Water Authority’s rates, the Water Authority’s rates would be decreased accordingly.
Water Planning Committee. Director Muir announced all items were passed.
Legislation, Conservation and Outreach Committee. Director Steiner announced
items 9-17 and 9-19 passed. Item 9-19 was amended refer the matter of the tiered dues structure Fiscal Year 2007 appropriation, and other Water Conservation Garden issues to the Water Conservation Garden Ad Hoc Committee.
Imported Water Committee. Chair Muir announced the Committee went into Closed Session and no action was taken.

9. CONSENT CALENDAR
Director Rhinerson moved, Director Price seconded and the motion carried at 89.75% of the vote to approve the amended Consent Calendar. Abstentions and those voting no are listed under the item.

Item 9-1. Professional Services Contract for security services for Emergency Storage Project construction activities near the San Vicente Reservoir. The Board awarded a Professional Services Contract to Able Patrol and Guard for$725,000 for construction site security services for the ESP construction activitiesnear the San Vicente Reservoir.

Item 9-2. Notice of Completion for the Moreno Lakeside Pipeline Project. The Board authorized the General Manager to accept the Moreno Lakeside Pipelineas complete, record the Notice of Completion, and release all due funds held in retention to The Hartford following expiration of the Notice of Completion period.

Item 9-3. Construction Contract for the San Vicente Pipeline and Aqueduct Interconnect and CIP Budget increase. The Board awarded a construction contract to Shea/Traylor Joint Venture for $198.4 million for the San Vicente Pipeline and Aqueduct Interconnect.

Item 9-4. Treasurer’s report. The Board noted and filed the monthly Treasurer’s report.

Item 9-5. Approval of the transfer of funds within the Operating Budget for Fiscal Years 2004 & 2005.The Board approved the transfer of the funds within the Fiscal Years 2004 & 2005 Operating Budget from Water Resources to Right of Way in the amount of $125,000.

Item 9-6. Adopt Resolution No. 2005- approving the extension of the existingLiquidity Facility with Bayerische Landesbank (“BLB”) for the WaterAuthority’s commercial paper program.The Board adopted Resolution No. 2005-23 approving the extension of the Liquidity Facility commitment with BLB at the new terms and fees asnegotiated between staff and BLB. The Board approved certain financingdocuments relative to this commitment extension.

Item 9-7. Discussion of options regarding when the Board should consider whether toinclude a project labor agreement specification on public works projects. The Board adopted Ordinance No. 2005-04, an ordinance of the Board ofDirectors of the San Diego County Water Authority amending Section 4.08.060of the Administrative Code to require board consideration whether to includea project labor agreement specification on public works projects, includingdesign-build projects, having a contract amount of $100 million or greater.

Item 9-8. Adopt General Manager’s “Recommended Multi-Year Budget Fiscal Years 2005-2006 and 2006-2007” (Volume I: Operating and Volume II: Capital Improvement Program) and make appropriations in the amount of $1.338 billion consistent with the budget.The Board adopted Resolution No. 2005-24, a resolution of the Board of Directors of the San Diego County Water Authority approving the “General Manager’s Recommended Multi-Year Budget Fiscal Years 2005-2006 and 2006-2007” (Volume I: Operating and Volume II: Capital Improvement Program) and making appropriations in the amount of $1.338 billion consistent with the approved budget; and establish new and revised project budgets within the CapitalImprovement Program increasing the program to $3.315 billion. The Board approved an additional $100,000 to the Recommended Budget for purposes of the Conservation Ad Hoc Committee. The Ad Hoc Committee would evaluateopportunities for conservation efforts and would return to the Board with recommendations for these expenditures. Director Broomell voted no on this item.

Item 9-9. Public Hearing to adopt increased Water Rates and Charges consistent withbudget for Fiscal Year 2005-2006 and Fiscal Year 2006-2007 and continue the Water Standby Availability Charge as currently imposed.The Board adopted Ordinance No. 2005-05, an ordinance of the Board ofDirectors of the San Diego County Water Authority setting rates and chargesfor the delivery and supply of water, use of facilities and provision of services. The Board adopted Ordinance No. 2005-06, an ordinance of the Board of Directors of the San Diego County Water Authority fixing a Water StandbyAvailability Charge on land within the boundaries of the Water Authorityfor Fiscal Year 2005-2006 at the current amount of $10 per acre or parcelless than an acre. The Board authorized should the rates for the Metropolitan Water District be lower in the year 2007 than the calculations that wereused for the Water Authority’s rates, the Water Authority’s rates would be decreased accordingly.

Item 9-10. Adopt Resolution No. 2005-25 approving Fiscal Years 2006 and 2007 Classificationand Salary Schedules, and Salary Tables for determining compensation of WaterAuthority employees.The Board adopted Resolution No. 2005 –25 approving the Fiscal Years2006 and 2007 Classification and Salary Schedules, and Salary Tables fordetermining compensation of Water Authority employees.

Item 9-11. Amend and approve a Professional Services Contract with Greystone Environmental Consultants, Inc., for QSA Transfer Program Environmental Support Services in an amount not-to- exceed $400,000. The Board authorized an amendment to the Professional Services Contract with Greystone Environmental Consultants, Inc., to provide environmental support services for an amount not-to-exceed $400,000.

Item 9-12. Approve a Professional Services Contract with Anchor Environmental CA, L.P., to write the Integrated Regional Water Management Plan in an amount not-to-exceed $250,000. The Board awarded a Professional Services Contract to Anchor Environmental CA, L.P., to write the IRWM Plan in an amount not-to-exceed$250,000.

Item 9-13. Authorize Resolution for Integrated Regional Water Management Plan Grant Application, Step 1. The Board adopted Resolution No. 2005-26, a resolution of the San DiegoCounty Water Authority Board of Directors to file the Integrated Regional Water Management Plan Grant Application, Step 1.

Item 9-14. Request Metropolitan Water District of Southern California set formal termsand conditions for the proposed Peaceful Valley Ranch Annexation.The Board adopted Resolution No. 2005-27 requesting formal terms and conditions from Metropolitan for the Peaceful Valley Ranch annexation. Director Rhinerson abstained on this item.

Item 9-15. Approve amendment to the contract with RBF Consulting, Inc. for seawater desalination environmental review and compliance services in an amountnot-to-exceed $1,350,000. The Board authorized execution of a second amendment to contract in an amount not-to-exceed $1,350,000 with RBF Consulting, Inc., for seawater desalination environmental review and compliance services.

Item 9-16. Approve amendment to contract with Parsons Brinckerhoff Quade andDouglas, Inc. The Board authorized execution of an eighth amendment to the contract in an amount not-to-exceed $490,000 with Parsons Brinckerhoff Quade andDouglas, Inc., for engineering and technical support services for the Regional Seawater Desalination Project at the Encina Power Station and technical supportfor the planned seawater desalination feasibility study at San Onofre.

Item 9-17. Affirm positions of Support on AB 1466 (Laird) Tamarisk Plant Control and Support on SB 820 (Kuehl) Water.The Board affirmed positions of Support on AB 1466 (Laird) Tamarisk PlantControl and Support on SB 820 (Kuehl) Water.

Item 9-18. Amendment to Professional Services Contract with Katz & Associatesfor continued community outreach on CIP projects.The Board authorized the General Manager to execute the Fifth Amendment tothe Professional Services Contract with Katz & Associates to provide communityoutreach services on CIP Master Plan related projects through December 2005 and allocate CIP funding in the amount of $123, 000; and amend the scope of workto extend the Katz & Associates contract from December 2005 to December 2007to continue community outreach on these CIP projects and allocate funding inthe amount of $460,000.

Item 9-19. Authorize the Water Authority to fund the Water Conservation Garden under a revised JPA dues structure.The Board authorized the share of the Water Authority dues to the Water Conservation Garden JPA to be modified in accordance with the revised JPAdues structure in an amount not to exceed $100,000 for Fiscal Year 2006and refer the matter of the tiered dues structure, Fiscal Year 2007 appropriation, and other Water Conservation Garden issues to the Conservation Ad Hoc Committee. Director Broomell voted no on this item.

Item 9-20. 17160 Cloudcroft Drive, Poway – Encroachment Permit for 100 square foot encroachment of a portion of house into the Right of Way. The Board approved an Encroachment permit requiring the encroaching portionof the house would be removed upon: remodeling or reconstruction of any portion of the house in excess of 25% of the home’s gross area; or any remodeling or reconstruction of the room containing the encroachment.

11. CLOSED SESSION:
11-A CLOSED SESSION:
Conference with Real Property Negotiator
Government Code §54956.8
Property: Property interests for a regional desalination project at the Encina Power Plant site in the City of Carlsbad
Agency Negotiators: Maureen Stapleton, Daniel Hentschke, Ken Weinberg
Negotiating Parties: Cabrillo Power, LLC; Poseidon Resources, Inc.
Under Negotiations: Price and terms of acquisition

12. CHAIRS REPORT
Chairman Bond announced the Board of Diectors’ retreat would be held on
September 9, 2005. He announced that Nora Jaeschke would be leaving the Board of Directors.

18. ADJOURNMENT
There being no further business to come before the Board, Chairman Bond
adjourned the meeting at 4:05 p.m.

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MINUTES OF THE FORMAL BOARD OF DIRECTORS' MEETING

JUNE 23, 2005