MINUTES OF THE FORMAL BOARD OF DIRECTORS' MEETING

December 18, 2008

WATER PLANNING COMMITTEE

CALL TO ORDER/ROLL CALL

Chair Lewinger called the meeting to order at 9:03 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, Croucher, Dion, Ferguson, Hilliker, Johnson, Petty, Pocklington, Price, Saxod, Smith, K. Williams and Wornham. At that time, there was a quorum of the full Board and the meeting was conducted as a meeting of the Board; however, only Committee members participated in the vote. Staff present was General Manager Stapleton, General Counsel Hentschke, Deputy General Managers Belock and Lanspery, Assistant General Manager Cushman, Director of Water Resources Weinberg, Water Resources Manager Yamada, MWD Program Chief Chen, Principal Water Resources Specialist Stadler and Senior Water Resources Specialist Diehr.

ADDITIONS TO AGENDA

There were no additions to the agenda.

PUBLIC COMMENT

There were no public comments.

CHAIR'S REPORT

4-A Chair Lewinger started the meeting and requested the committee read the details of the Final Report on Water Planning Goals and Objectives for 2007-2008 that were in the Board packet.

He expressed his appreciation to each of the committee members for the hard work and to their commitment in achieving the goals and objectives over the past two years.

DIRECTOR'S COMMENT

There were no Director's comments.

I. CONSENT CALENDAR

1. Approve a contract with Winzler & Kelly for a Market Development and Technical Assistance Program in the amount of $250,000.

Staff recommendation: Award a professional services contract to Winzler & Kelly for a not-to-exceed amount of $250,000.

2. Tijuana River Valley Wetlands Mitigation Project.

2-A Adopt Resolution Certifying the Final Environmental Impact Report for the Tijuana River Valley Wetlands Mitigation 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: Adopt Resolution No. 2008-__ 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) Adopts Environmental Findings of Fact and Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program;

c) Approves the project proposed in the Final EIR Project Description as the selected project; and

d) Authorizes the filing of a Notice of Determination.

2-B Amend agreement with county of San Diego regarding wetland mitigation sites.

Staff recommendation: Authorize the General Manager to negotiate and execute an amended agreement that allows the Water Authority to retain extra wetland mitigation credits at the Tijuana River Valley site in exchange for a one-time endowment to the County of up to $325,000.

Director Steiner moved to approve the Consent Calendar, Director Martin seconded, and the motion passed with abstentions by Director Arant and Martin.

II. ACTION/DISCUSSION

1. PUBLIC HEARING: tMitigated Negative Declaration for the Pipelines 3&4 Relining Project – Miramar Hill to State Route 52.

Chair Lewinger opened the Public meeting at 9:10 a.m. There were no members of the public that wished to speak. Chair Lewinger closed the Public Hearing at 9:13 a.m.

2. Drought Management Planning.

2-A Drought Management Plan Implementation report.

Mr. Yamada presented information about the current water supply conditions, storage levels, and delivery impacts.

2-B Metropolitan Water District’s Five Year Supply Plan.

Ms. Chen reviewed Metropolitan Water District’s Five-Year Supply Plan, its potential resource options for the next five years, and the next steps.

2-C Approve modifications to the Water Authority Supply Allocation Methodology to address alignment issues with the Metropolitan Water District Water Supply Allocation Plan.

Staff recommendation: Adopt modifications to the Water Authority’s allocation methodology regarding planned local supply development, extraordinary local supply development, and growth adjustments during multiple consecutive allocation years.

Mr. Weinberg presented the alignment of the Water Authority and Metropolitan’s allocation methodologies.

Director Muir moved to approve the staff recommendation, Director McMillan seconded, and the motion passed unanimously.

2-D Authorize participation in Metropolitan Water District of Southern California’s 2009 Member Agency Drought Bank Pilot Program.

Staff recommendation: Authorize the General Manager to enter into an agreement with Metropolitan Water District (MWD) to acquire up to 5,000 acre-feet through its 2009 Member Agency Drought Bank Pilot Program contingent upon finalizing acceptable terms for participation.

Mr. Cushman presented the staff recommendation for Item 2-D.

Director Barrett moved to approve staff recommendation, Director Dailey seconded, and the motion passed unanimously to authorize the General Manager to enter into an agreement with Metropolitan Water District (MWD) to acquire up to 5,000 acre-feet through its 2009 Member Agency Drought Bank Pilot Program contingent upon finalizing acceptable terms for participation.

3. Integrated Regional Water Management Program.

3-A Authorize Resolution No. 2008 for the acceptance of Proposition 50, Chapter 8 grant award.

Staff recommendation: Authorize a resolution to accept the grant award.

3 -B Amend contract for Integrated Regional Water Management Plan support.

Staff recommendation: Amend the professional services contract with RMC in the amount of $660,000.

3-C Approve memorandum of understanding with city of San Diego and county of San Diego for implementation of Integrated Regional Water Management Plan activities.

Staff recommendation: Approve the MOU with the City and the County for IRWM activities.

Mr. Stadler presented Items 3-A, 3-B, and 3-C.

Director Muir moved, Director Steiner seconded, and the motion passed unanimously to authorize a resolution to accept the grant award, amend the professional services contract with RMC in the amount of $660,000 and approve the MOU with the City and the County for IRWM activities.

4. Funding Recommendation for the Local Investigations and Studies Assistance Program – Second Funding Cycle. (Action).

Staff recommendation: Authorize the General Manager to enter into agreements totaling $2,000,000, in fiscal year 2008 and 2009, for the funding of eight of the eleven grant applications submitted. Those agencies receiving funding would be: city of San Diego ($500,000); Padre Dam Municipal Water District/Helix Water District ($512,500); Rincon del Diablo Municipal Water District ($17,000); Carlsbad Municipal Water District ($170,500); City of Oceanside ($500,000); Santa Fe Irrigation District ($25,000); City of Vista/Vista Irrigation District ($150,000); and Valley Center Municipal Water District ($125,000).

Mr. Diehr presented the background on the LISA program including the funding request and recommendation.

Director Muir moved to approve the staff recommendation, Director Martin seconded, and the motion passed with one abstention by Director Barrett.

III. INFORMATION

1.Water Resources Report.

The Water Resources Report was received and filed.

Chair Lewinger took the Committee into Closed Session at 10:25 a.m.

IV. CLOSED SESSION

1. CLOSED SESSION
Conference with Real Property Negotiator
Government Code §54956.8
Property: a. Placer County Water Agency – water for short term transfer
Agency Negotiators: Daniel Hentschke, Dennis Cushman
Negotiating Parties: a. Designated representatives of Placer County Water Agency
Under Negotiation: Price and terms of acquisition

The Committee came out of Closed Session at 10:55a.m. Mr. Hentschke stated the following actions had been taken.

Authorized General Manager to execute a 1-year agreement with Placer County Water Agency within board-approved parameters, including such additional terms the General Manager and General Counsel deem appropriate.

V. ADJOURNMENT

There being no further business to come before the Water Planning Committee, Chair Lewinger adjourned the meeting at 11:00 a.m.

IMPORTED WATER COMMITTEE MEETING

CALL TO ORDER/ROLL CALL

Chair Croucher called the Imported Water Committee to order at 11:07 a.m. Committee members present were Directors Brammell, Ferguson, Lewinger, Linden, Martin, McMillan, Parker, Price, Saxod, Steiner, and K. Williams. Director Knutson was absent. Also present were Directors Arant, Barrett, Bond, Bowersox, Dailey, Hilliker, Johnson, Lewis, Muir, Petty, Pocklington, Saunders, Smith, and Watton. 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, MWD Program 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

Chair Croucher discussed the recently issued biological opinion for the delta smelt that would further alter Delta water operations to protect the ecosystem. He also stated that several upcoming MWD inspection tours were available for the Board to attend. Chair Croucher thanked the Vice Chairs, Committee members, and staff for their participation and assistance during his two-year term as Chair.

DIRECTOR'S COMMENTS

There were no Director’s comments.

I. CONSENT CALENDAR

There were no items on the consent calendar.

ACTION/DISCUSSION

1. MWD Issues and Activities update.

1-A Metropolitan Water District’s Delegates report.

Director Bond discussed a MWD board workshop on January 6 that would focus on reviewing the upcoming MWD budget.

2. Colorado River Programs.

2 -A Colorado River Board representative’s report.

There were no comments from Director Knutson.

3. Update on the California Fish and Game Commission’s Emergency Regulations to protect Longfin Smelt during its Candidacy Review Period.

Principal Water Resource Specialist Bill Tippets gave a presentation on the California Fish and Game Commission’s Longfin Smelt emergency regulations and the Delta Smelt biological opinion.

III. INFORMATION

1. All American Canal Human Safety update.

Colorado River Programs Director Razak provided a brief update on the All American Canal Human Safety issue. She stated that the findings from the safety expert hired to review the All American canal’s safety would be presented to the Colorado River Programs Ad Hoc Committee and that Committee’s recommendation would be brought to the January Imported Water Committee meeting.

Dr. John Hunter and Laura Hunter from the Citizens for All American Canal Safety addressed the committee.

2. Metropolitan Water District Program report.

MWD Program Chief Chen gave a presentation on reasons behind MWD’s current high rate environment, explaining the historical factors and current conditions that could result in a potential rate increase of 20 to 25 percent for 2010.

Following her presentation, directors discussed the status of MWD’s upcoming budget process and the potential effects to MWD’s rates, and requested that the MWD’s rate increase information would be provided to the public.

The Committee went into closed session at 12:03 p.m.

IV. CLOSED SESSION

1. CLOSED SESSION

Conference with Legal Counsel – Existing Litigation
Government Code §54956.9(a)
Name of Case: IID/SDCWA Water Transfer (Price Reset)

The Committee reconvened at 12:14 p.m. General Counsel Hentschke stated that the action taken was not reportable.

V. ADJOURNMENT

There being no further business to come before the Imported Water Committee, Chair Croucher adjourned the meeting at 12:15 p.m.

ENGINEERING AND OPERATIONS COMMITTEE

CALL TO ORDER / ROLL CALL

Chair Ferguson called the Engineering and Operations Committee to order at 12:21 p.m. Committee members present were Chair Ferguson, Vice Chairs Bowersox, and Johnson, Directors Barrett, Brammell, Petty, Pocklington, Smith, and Tu. The Committee members absent were Directors Hogan, Knutson, Morrison and Thompson. Other Board members present were Directors Dailey, Dion, Hilliker, Lewinger, Lewis, Linden, Martin, McMillan, Muir, Price, Saunders, Saxod, Watton, and K. Williams. At that time, there was a quorum of the full Board and the meeting was conducted as a meeting of the Board; however, only Committee members participated in the vote. Directors Parker, Steiner and Wornham arrived after 12:25 p.m. Staff present was, General Manager Stapleton, General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman Deputy General Manager Belock, Director of Engineering Stift, Acting Director of Right of Way Busch, Director of Operations and Maintenance Eaton, Engineering Manager Bousquet, and Operations and Maintenance Manager Galleher.

ADDITIONS TO AGENDA

There were no additions to the agenda.

PUBLIC COMMENT

There were five members of the public who wished to address the Committee. They were Dorothy Leonard, Chair of the Mission Trails Regional Park Citizens Advisory Committee regarding agenda item II. Action /Discussion 1. San Vicente Dam Raise Funding. Everett Delano, RiverWatch, George Courser, Resident, Walter Rusinek, Representative for the Pala Band of Mission Indians and Kimberly Thorner, Olivenhain Municipal Water District regarding agenda item II. Action/Discussion 4. Gregory Canyon Landfill update.

CHAIR'S REPORT

Chair Ferguson referred to the final report of the Engineering and Operations Committee Goals and Objectives for 2007/2008 included in the Board packet. She congratulated staff and the Committee for the cooperation given to her as Chair of the Committee for the last two years.

4-A      Director's comments.

            There were no Director's comments.

I. CONSENT CALENDAR

1. Notice of Completion for the Pipeline 4 Paint Mountain to Del Dios Highway project for the Relining and Pipe Replacement Program.

Staff recommendation: Authorize the General Manager to accept the Pipeline 4 Paint Mountain to Del Dios Highway Relining project as complete, record the Notice of Completion, and release funds held in retention to James W. Fowler Company following
the expiration of the notice of completion period.

2. Change orders to Archer Western contract for the ESP – Lake Hodges Pump Station and Inlet/Outlet project, increasing the Lake Hodges Projects and CIP budgets.

Staff recommendation:
• Accept change orders 13 and 16 for $242,229
increasing the contract amount to $58,436,165;
• Authorize the General Manager to execute a change
order for $4,090,371 for direct and delay costs and
a 4-3/4 month time extension associated with the
inlet/outlet differing site condition, increasing the
contract amount to $62,526,536;
• Increase the Olivenhain-Hodges Pumped Storage
project budget by $1,197,738 from $57,085,000 to
$58,282,738, and increase the Lake Hodges Pump
Station and Inlet-Outlet project budget by
$4,842,633, from $80,180,500 to $85,023,133;
• Increase the CIP Budget by $6,040,371, from
$3.736 billion to $3.742 billion.

3 . Amended agreement for legal services with Duncan & Allen.

Staff recommendation: Authorize the General Counsel to execute
the amended agreement for legal services with Duncan & Allen,
increasing the contract limit from $75,000 to $125,000.

Director Barrett moved to approve the consent calendar, Director Smith seconded and the motion passed unanimously.

II. ACTION/DISCUSSION

1. San Vicente Dam Raise Funding.

Staff recommendation: Authorize the General Manager to reprioritize
the Capital Improvements Program (CIP) to enable the San Vicente Dam Raise project to go out to bid and delay other projects to mitigate changes in the overall CIP funding requirements for FY2009 and FY2010.

Mr. Belock gave a presentation and provided an update and status report on the San Vicente Dam Raise funding and the CIP reprioritization efforts, current and proposed schedules for the Dam Raise, Mission Trails FRS and Relining Projects, not including the Pipeline 4 urgent repair across the San Diego River. Also included were bid alternatives, and reasons for the recommendation. Following a lengthy discussion with the Committee, Board, staff and Public Comment, Director Pocklington moved to approve staff’s recommendation. Director Barrett moved to continue the item to the January 8, 2009 Special Board Meeting, Director Tu seconded and the motion passed unanimously to have the item continued.

2. Professional services contract with PURE Technologies US Inc. for the installation of an Acoustic Fiber Optic Cable Monitoring System in Pipelines 4 and 5.

Staff recommendation: Award a professional services contract to PURE Technologies US Inc., for an amount not-to-exceed $2,991,608, to provide acoustic fiber optic cable installation and prestressed concrete cylinder pipe monitoring services through September 30, 2011, for Pipelines 4 and 5 between Metropolitan Water District’s delivery point and the diversion structure.

Director Petty moved to approve staff’s recommendation, Director Pocklington seconded and the motion passed unanimously.

3. Urgent repair for Pipeline 4 under the San Diego River.

Staff recommendation: Authorize the General Manager to solicit bids or proposals and award a contract for the urgent repair of Pipeline 4 under the San Diego River.

Director Barrett moved to approve staff’s recommendation, Director Smith seconded and the motion passed unanimously.

4. Gregory Canyon Landfill update.

Mr. Belock gave a brief presentation on the status of encroachment permits, the recent court ruling on the Environmental Impact Report, and the final issue: provision of water. Mr. Belock referred to the Olivenhain Municipal Water District’s letter included in the pick-up packet and the letter received from Procopio, Cory, Hargreaves & Savitch, LLP, dated 12/18/2008 Re: Provision of “Recycled” Water to the Proposed Gregory Canyon Landfill by the Olivenhain Municipal Water District. Committee discussion ensued following review of the letters and hearing the four public speakers on the matter.

III. INFORMATION

There were no items under information.

IV. CLOSED SESSION

There were no items under Closed Session.

IV. ADJOURNMENT

There being no further business to come before the Engineering and Operations
Committee, Chair Ferguson adjourned the meeting at 1:10 p.m.

ADMINISTRATIVE AND FINANCE COMMITTEE

CALL TO ORDER/ROLL CALL

Chair Wornham called the Administrative and Finance Committee meeting to order at 1:49 p.m. Committee members present were Chair Wornham, Vice Chairs Hogan and Price, Directors Bond, Dion, Hilliker, Johnson, Lewis*, Petty, Pocklington, and Smith. Committee members absent were Directors Saunders, Thompson, and H. Williams. Also present were Directors Arant, Barrett, Bowersox, Brammell, Dailey, Ferguson, Knutson, Lewinger, Linden, Martin, McMillan, Parker, Saxod, Steiner, 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 Lanspery and Belock, Assistant General Manager Cushman, Director of Finance/Treasurer Sandler, Director of Administrative Services Young, Director of Human Resources Leone, Director of Water Resources Weinberg, Principal Water Resources Specialist Friehauf, Controller Wade, Investment Analyst Cirello, and Risk Manager Homer.

* Director Lewis joined the meeting at 1:55 p.m.

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 Wornham reported on the November 18, 2008 Special Administrative and Finance Committee meeting related to the 2008 audit at which the audit process was reviewed and the basic financial statements for the fiscal year ended June 30, 2008 were presented. The Water Authority received a “clean” opinion letter, and had no management letter comments.

Vice Chair Hogan provided an update on the Comprehensive Reliability and Cost Assessment Ad Hoc committee update. Vice Chair Hogan summarized three issues the Ad Hoc committee had reviewed in preparation for the January 8, 2009 Board Workshop: 1) water demand forecast sales and supply mix outlook, 2) CIP cost pressures and timing of projects, and 3) economic pressures resulting from MWD rates and capacity charges.

Chair Wornham reported on the Administrative and Finance committee’s Goals and Objectives for 2007 and 2008. Chair Wornham thanked the committee members and staff for their hard work and highlighted several accomplishments of the committee.

DIRECTOR'S COMMENTS

Chair Wornham and Director Petty commended Director of Finance/Treasurer Sandler and finance staff for their hard work, particularly in the past year.

Vice Chair Price commended Chair Wornham on his role as Committee Chair, and congratulated him on his leadership during the refinancing efforts.

I. CONSENT CALENDAR

1. Treasurer’s report.

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

2. Adopt the Vote Entitlement Resolution for Calendar Year 2009.

Staff recommendation: Adopt the Resolution No. 2008-18 establishing the vote and representative entitlements of each member agency effective January 1, 2009.

3. Amend the defined benefit pension plan (terminal pay plan) and amend agreement for legal services with Pillsbury Winthrop Shaw Pittman, LLP.

Staff recommendation: 1) Amend the defined benefit pension plan in order to comply with state and federal law; and 2) Authorize the General Counsel to execute the amended agreement for legal services with Pillsbury Winthrop Shaw Pittman, LLP to add a not-to-exceed amount of $10,000 to the original $50,000 contract previously approved under the authority of the General Counsel.

4. Adopt Administrative Code amendment to modify the disciplinary appeals procedures.

Staff recommendation: Adopt Ordinance No. 2008-___ an ordinance of the Board of Directors of the San Diego County Water Authority repealing section 2.16.040 and amending section 2.16.050 of the Administrative Code.

5. Amend professional services agreement with Parsons Constructors Incorporated for Safety, First Aid, and Drug Testing Services and Project Labor Agreement Administration for the Emergency Storage Project/Capital Improvement Program.

Staff recommendation: Authorize an amendment with Parsons Constructors Incorporated for safety, first aid, and drug testing services and Project Labor Agreement Administration in an amount not to exceed $7.3M, increasing the contract from $10.0M to $17.3M, and authorize the transfer of funds from supported ESP/CIP projects. The amendment will provide these services until 2013.

6. Resolution authorizing employee retirement contributions under existing 401(a) plans be treated as tax deferred contributions.

Staff recommendation: Adopt Resolution Nos. 2008-19 and 2008-20 authorizing employer pick-up of employee retirement contributions to the Water Authority 401(a) plans.

Chair Wornham requested Item 4 of the consent calendar be continued to the February 26, 2009 Board meeting.

Director Petty moved, seconded by Director Johnson, and the motion passed unanimously to approve Items 1,2,3,5 and 6 of the consent calendar.

II. ACTION/DISCUSSION

1. PUBLIC HEARING: Adopt transitional Special Agricultural Rates (SAWR) for calendar year 2009 for customers opting out of the MWD’s Interim Agricultural Water Program.

Staff recommendation: Adopt Ordinance No. 2008-08 an ordinance of the Board of Directors of the San Diego County Water Authority confirming the special agricultural water rate and establishing procedures for administration of the special agricultural water rate program consistent with the phase out of the Metropolitan Water District of Southern California’s interim agricultural water program.

Chair Wornham opened the Public Hearing to order at 1:57 p.m. There were no members of the public that wished to speak. Principal Water Resources Specialist Dana Friehauf provided a brief presentation on the item. Chair Wornham closed the Public Hearing at 2:00 p.m.

Director Dion moved, seconded by Vice Chair Hogan, and the motion passed unanimously to approve staff’s recommendation.

2 . Adopt Annual Statement of Investment Policy, as amended, and continue to delegate authority to the Treasurer to invest Water Authority funds for calendar year 2009.

Staff recommendation: Adopt the Annual Statement of Investment Policy, as amended, and continue to delegate authority to the Treasurer to invest Water Authority funds for calendar year 2009.

Mr. Sandler provided a brief presentation on the item.

Director Pocklington moved, seconded by Director Hilliker, and the motion passed unanimously to approve staff’s recommendation.

3. Adopt a resolution approving commercial paper dealers and the execution and delivery of commercial paper dealer agreements and approving form of offering memorandum. Approval of Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. to serve as underwriters to explore the possible restructuring of Commercial Paper Program.

Staff recommendation: Adopt Resolution No. 2008-21 which authorizes the selection of the recommended underwriting firms to serve as CP Program dealers and approve the form of the dealer agreements and offering memorandum. Authorize the selection of Citigroup and J.P. Morgan as underwriters to explore the possibility of restructuring a portion of the CP Program.

Mr. Sandler provided a brief presentation on the item.

Directors asked questions and Mr. Sandler provided answers. Director Pocklington moved, seconded by Director Johnson, and the motion passed unanimously to approve staff’s recommendation.

III. INFORMATION

The following items were received and filed:

1. Controller’s report on monthly financial statements.

2. Annual report on monthly financial statements.

3. Annual report on maximum Operating Fund balance policy and the fiscal year 2008 ending fund balances.

4. Board calendar.

IV. CLOSED SESSION

V. ADJOURNMENT

There being no further business to come before the Administrative and Finance Committee, Chair Wornham adjourned the meeting at 2:16 p.m.

LEGISLATION, CONSERVATION AND OUTREACH COMMITTEE MEETING

CALL TO ORDER / ROLL CALL

Chair Tu called the Legislation, Conservation and Outreach Committee to order at 2:20 p.m. Committee members present were Directors Arant, Bond, Dailey, Dion, Hilliker, Muir, Saxod, Watton, K. Williams, and Wornham. Committee members absent were Vice Chairs Morrison and H. Williams and Director Croucher. Also present were Directors Barrett, Bowersox, Brammell, Ferguson, Hogan, Johnson, Knutson, Lewinger, Lewis, Martin, McMillan, Parker, Petty, Pocklington, Price, Smith, and Steiner. 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, Director of Public Affairs Foster, Director of Right of Way Rose, and Government Relations Manager Volberg.

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 announced that Water Resources Manager Roy was elected as Convener for the Urban Water Conservation Council.

Chair Tu thanked all committee directors and staff for their assistance this year.

DIRECTOR'S COMMENTS

There were no Director’s Comments.

I. CONSENT CALENDAR

1. Amendment with San Diego Gas and Electric for high-efficiency clothes washer incentive funding.

Staff recommendation: Authorize the General Manager to amend cooperative agreement with SDG&E in an amount not-to-exceed $1,054,800 to continue to review HEW incentive funding from SDG&E.

2 . Report to legislature pursuant to 2006 statutes, Chapter 243 (SB 511) relating to Water Authority Board Governance.

Staff recommendation: Approve the report and authorize the Board Chair to transmit the report to the legislature.

Chair Bond moved, Chair Muir seconded, and the motion passed unanimously to adopt 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 Washington, D.C.

Legislative Advocate B. Clay announced his retirement.

1-B Adopt proposed 2009 Legislative Policy Guidelines.

Staff recommendation: Adopt the proposed 2009 Legislative Policy Guidelines.

Director K. Williams moved to continue this item to the January 22, 2009, meeting as it merits further information. Director Muir seconded, and the motion passed unanimously to have the item continued to the January 22, 2009, meeting.

1-C Sponsor legislation that: Updates the water demand management measures required by the Urban Water Management Plan Act, and; Requires state agencies such as Caltrans to use recycled water to irrigate landscaping, if a local water agency makes available recycled water of adequate quality.

Staff recommendation: Sponsor legislation that: 1) Updates the water demand management requirements of the Urban Water Management Plan Act, and; 2) Requires state agencies such as Caltrans to use recycled water to irrigate landscaping, if a local water agency makes available recycled water of adequate quality.

Director Dion moved, Director Muir seconded and the motion passed unanimously to adopt staff recommendation.

2 . Drought Management Communications.

2-A Regional Drought Management and Conservation Communications update.

Public Affairs Manager Vedder provided a presentation, including advertising campaign status, community outreach, and online communications.

Director Lewinger asked regarding the development of a device for controlling and shutting off customers’ sprinkler systems. General Manager Stapleton stated that staff would research for any current technology and would report to the committee at a later date.

2-B Presentation by Mark Weston, General Manager , Helix Water District, on drought conservation plans.

Mr. Weston provided a presentation, including goal, rates, tiered rates with water shortage adjustments, non-rate actions, and new sources of water.

3. Amendment to increase Landscape Assistance Program services contract with Honeywell International, Inc.

Staff recommendation: Authorize a $1.5 million amendment to increase the total not-to-exceed amount of the Honeywell International, Inc., contract for the Smart Landscape Program from $3,750,000 to $5,250,000.

General Manager Stapleton reminded the Board of the current reorganization and stated that Director of Right of Way Rose was now responsible for the management of the conservation programs.

Director of Right of Way Rose provided a presentation, including Smart Landscape Program elements and expenditures, staff recommendation, and distribution of outsourced services.

Director Wornham moved, Director K. Williams seconded, and the motion passed unanimously to authorize staff’s recommendation.

4. 2009 Public Opinion Poll content.

Director of Public Affairs Foster introduced Public Affairs Media Representative Liarakos. Public Affairs Media Representative Liarakos provided a presentation, including public opinion polls, common topics, 2009 public opinion poll, and 2009 recommendations.

Director Wornham suggested a meeting be arranged to allow member agencies to share any issues or questions they may have in their districts. General Manager Stapleton stated that an email would be sent to the member agencies with a deadline to respond.

III. INFORMATION

1. Presentation on SCOOP annual report.

SCOOP Manager Yanushka provided a presentation, including dollars awarded to small businesses, outreach activities, Fiscal Year 2008 SCOOP results, SCOOP outreach integration, 10th Annual Paths to Partnerships event details, and members of the Regional Construction Procurement and Paths to Partnerships Planning Committees.

Paths to Partnerships Planning Committee member Sandy Caples provided a brief overall report on the planning committee’s duties and accomplishments. She thanked the Water Authority for its business outreach and for helping small businesses. Chair Tu thanked the planning committee for their work.

Director Johnson expressed thanks to the Paths volunteers for their fine work.

2. Water Conservation Garden report.

Executive Director Eberhardt provided a presentation, including increases in visitations, tour participants, and class participants; effects on water conservation; and reaching beyond its gates.

The following items were received and filed:

3. Summary of the Biennial report on the implementation of the Best Management Practices to the California Urban Water Conservation Council.

4. Government relations update.

5. Public Affairs outreach activities for the months of October and November 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 3:20 p.m.

FORMAL BOARD OF DIRECTORS' MEETING OF DECEMBER 18, 2008

1. CALL TO ORDER Chair Steiner called the Formal Board of Directors’
meeting to order at 3:30 p.m.

2. SALUTE TO THE FLAG Chair Steiner 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, Martin, McMillan, Morrison, Muir, Parker, Petty, Pocklington, Price, Saunders, Smith, Steiner, Tu, and Watton. Directors absent were Croucher (p), Linden (p), Saxod, Thompson, H. Williams, K. Williams, Wornham and Representative Slater-Price.

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

5. APPROVAL OF MINUTES Director Johnson moved, Director Smith seconded and the motion carried for a total of 97.11% of the vote to approve the minutes of the Special meeting of the Imported Water Committee on October 10, 2008, the Special meeting of the Administrative and Finance Committee on October 15, 2008 and November 13, 2008, the Special meeting of the Engineering and Operations Committee on November 13, 2008, and the Formal Board of Directors’ meeting of October 23, 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 wished to speak.

7. PRESENTATIONS AND PUBLIC HEARINGS

7-A      Presentation to outgoing Chair.

7-B      Recognition of Teresa Penunuri, employee of the 1st quarter.

Vice Chair Lewis presented Chair Steiner with a gift from the Board of Directors and thanked her for all her hard work and the marvelous job she did leading the Board during the past two years. Chair Steiner expressed her appreciation to the Board.

Teresa Penunuri, Public Affairs Representative II was recognized as employee of the 1st quarter.

8. REPORTS BY CHAIRS

8-A Chair's Report - Chair Steiner. 

There was no Chair’s report.

8-B Report by Committee Chairs.

Water Planning Committee.  Director Lewinger reviewed the committee meeting and the actions taken.

Imported Water Committee.  Chair Steiner reviewed the committee meeting.

Engineering and Operations Committee.  Director Ferguson reviewed the committee meeting and actions taken.

Administrative and Finance Committee.  Director Wornham reviewed the committee meeting and actions taken.

9. CONSENT CALENDAR

Director Tu moved, Director Wornham seconded, and the motion carried at 97.11% of the vote to approve the amended consent calendar. Directors that voted no or abstained are noted under the item.

10. ACTION/DISCUSSION

10-1 Amendment to Master Power Purchase Agreement with SDG&E for Lake Hodges Project.

Engineering and Operations Committee recommendation:
At a special Engineering and Operations Committee meeting on November 13, 2008, the Committee unanimously recommended approval of Amendment 1 to the Master Power Purchase Agreement with SDG&E for the Olivenhain-Hodges Pumped Storage project. (Action).

Director Ferguson moved, Director Johnson seconded and the Board approved Amendment 1 to the Master Power Purchase Agreement with SDG&E for the Olivenhain-Hodges Pumped Storage project at 97.11% of the vote.

10-2 Election of Board Officers for 2009-2010. (Action).

Director Pocklington addressed the Board stating he had met with Vice Chair
Lewis earlier that day and he wished to withdraw his candidacy for Vice Chair, continuing in his role as a Metropolitan Water District Delegate. Director Pocklington thanked the Board members that had supported him and expressed the importance of teamwork.

Vice Chair Lewis addressed the Board stating he would not have supported a
Board member serving as both a Metropolitan Water District Delegate and a Board Officer.

Director Muir moved, Directors Barrett and Lewinger both seconded and the Board elected officers to the Board for a two-year term beginning, January 1, 2009 as follows:

Claude A. Lewis, Chair
Mark W. Watton, Vice Chair
Thomas V. Wornham, Secretary

Chair Elect Lewis described his processing in selecting Committee members for
the upcoming 2009-2010 term.

11. CLOSED SESSIONS:

12. SPECIAL REPORTS

12-A GENERAL MANAGER’S REPORT - No report was given.

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

12-C SANDAG REPORT - Director Dailey announced SANDAG would be electing officers the following day.

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

12-D AB 1234 COMPLIANCE REPORTS - No reports were given.

13. OTHER COMMUNICATIONS

Director Hilliker announced Assemblyman Joel Anderson had congratulated Chair Steiner for her two years of service. He also stated by January 1, 2009 all ten schools in the Lakeside Water District would have waterless urinals installed.

Director Barrett asked for an update on the webcasting. Chair Steiner announced the January meeting would be webcast.

Chair Steiner again thanked the Board for the gift they had presented to her.

14. ADJOURNMENT

There being no further business to come before the Board, Chair Steiner
adjourned the meeting at 4:00 p.m.

__________________________________

Fern M. Steiner
Chair

_______________________________

Mark W. Watton
Secretary

_______________________________

Doria F. Lore
Clerk of the Board

About Us · Water Management · Infrastructure · News/Publications · Board of Directors · Education · Opportunities · Contact Us · Home

History CWA Act Overview FAQs Organizational Chart Executive Team Administrative Code Member Agencies Imperial Valley Sacramento Annual Report Financial Information Water Rates Investor Relations

Operations Conservation Local Sources Groundwater Recycling Reservoirs Rainfall Water Quality Fluoridation Imported Water MWD QSA Col. River State Water Pref. Rights Agricultural Management Plan

Facilities Description Regional Water Facilities Master Plan Environmental Impact Reports 101 CIP APP ESP CIP Quarterly Report Right of Way Power

News Releases Electronic Documents Newsletters

Board Members Bios Committee Assignments Meeting Agendas & Minutes Notice to Public Strategic Plan Performance Member Agencies

For Teachers Internship Program Speakers' Bureau Patch Program

Employment Internship Program SCOOP Contracts & Proposals Public Agency Clause Procurements

Kearny Mesa Escondido Imperial Valley Website Feedback