BOARD MINUTE - February 20, 2001

MINUTES OF A REGULAR MEETING
of the
BOARD OF DIRECTORS
OF THE
MONTECITO WATER DISTRICT
held at the
DISTRICT BOARD ROOM

583 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA
at 2:00 P.M. on TUESDAY, FEBRUARY 20, 2001

CALL TO ORDER AND ROLL CALL

The meeting was called to order by President Abel at 2:00 p.m.
Those in attendance were:

Directors Present:	Directors Abel, Bachman, Drewry, Puddicombe, Wilson
Directors Absent:	None
Staff Present:	Fred Adjarian, General Manager Evalyn Kerman, Business Manager Tom, Mosby, Engineering Manager Chip Wullbrandt, District Counsel Anita Leski, Secretary
Guests Present:	None

PUBLIC FORUM	SECTION 2
No one from the public was present to speak.
CONSENT CALENDAR	SECTION 3
The following items were approved or accepted by vote on one motion unless a Board member requested a separate consideration: Minutes of January 16, 2001 Board Meeting Water Production Report for January 2001 Water Sales Reports for January 2001 Water Works Operation Report for January 2001 Investment of District Funds Payment of Bills for January 2001 December 2000 Cash Flow with January Sales Second Quarter Budget Report Second Quarter Investment Report Account Receivable Write-Offs Report on MWD Web Page Report on Distribution System and Fire Flow Upgrade Program, Water Availability Charge and Status of 1998 A Bond Programs Declaration of Surplus Vehicles Distribution System Audit Update President Abel requested that Item No. 3-A, Minutes of January 16, 2001 Board Meeting, be removed from the Consent Calendar for discussion and revision purposes. A motion was made by Director Puddicombe, seconded by Director Wilson, and unanimously carried to approve the January 16, 2001 Board Minutes as amended. A motion was made by Director Puddicombe, seconded by Director Wilson, and unanimously carried to approve the Consent Calendar as presented.
ENGINEERING/DISTRIBUTION/TREATMENT	SECTION 5
UPDATE ON ORTEGA RESERVOIR COVER PROJECT: CHLORINATION STATION IMPROVEMENTS. Manager Adjarian reported to the Board that MWD is the responsible agency for all water quality operations at the Ortega Reservoir. MWD is awaiting COMB'S approval before forwarding the final plans on the chlorination station to Penfield and Smith. A motion was made by Director Puddicombe, seconded by Director Bachman, and carried unanimously to approve the low bid from Tierra Contracting, to appropriate funding in the amount of $11,100 from the 1998 A Bond Project Fund, and to appropriate funding for $68,300 from the 1998 A Bond Fund for the scope of work outside the chlorination station bid contract to be completed by MWD and C.A. Larsen Company. UPDATE ON OFFICE UNDERGROUND STORAGE TANK CLEAN UP PROGRAM. Manager Adjarian presented the updated report that this ongoing program is structured such that DMI Environmental conducts all monitoring events. Santa Barbara County Protective Services Division is the local regulatory agency for this clean-up program. Director Bachman noted that this Program appears to be ready for closure, adding that the State Fund has increased the District’s Letter of Commitment for reimbursement of costs. PROPOSED MWD WATER SYSTEM MASTER PLAN UPDATE. Manager Adjarian updated the Board concerning the proposed Focused Assessment Plan (FAP) presented to the Finance Committee on February 13, 2001, and responded to questions from the Board on this item. R.W. Beck’s background in both finance and engineering was highlighted by Staff. A motion was made by Director Puddicombe, seconded by Director Wilson, and carried unanimously for final approval of the FAP process, scope of work and cost, ratification of the proposed FAP and consultant, and to appropriate $45,000 from the District’s General Reserve Fund.
ORDINANCES/RESOLUTIONS	SECTION 8
Due to the scheduled Time Certain for a Public Hearing, the following item was heard: TIME CERTAIN: 2:30 p.m. PUBLIC HEARING: RESOLUTION NO. 1907 ANNUAL STATEMENT REGARDING USE OF SWP WATER TO OFFSET MONTECITO GROUNDWATER BASIN OVERDRAFT. President Abel introduced this item, and opened the public hearing at 2:30 p.m. With no one from the public present to speak, the public hearing was closed at 2:33 p.m. A motion was made by Director Puddicombe, seconded by Director Bachman, and carried unanimously to approve Resolution No. 1907 by which the District would agree to use State Water for the offset of groundwater basin overdraft, if any, and which would include an annual report to CCWA on water supplies and groundwater overdraft. UPDATE ON MWD EMERGENCY POWER GENERATOR STATUS. Manager Adjarian reported that this item was reviewed by the Operations Committee at its meeting of February 2, 2001. Engineering Manager Mosby identified the key locations and explained the need for the generator purchases for the Romero Pump Station and the Ortega Pump Station. In response to a question, Mr. Mosby noted that all District generators were tested monthly to maintain optimum reliability. President Abel referred the Board to ACWA documents within the Board packet in response to the energy crisis. Director Wilson added that there was a need to identify additional electrical pumping costs, and suggested that using diesel generators for longer periods of time would serve as a savings. Director Puddicombe suggested using off-peak hours as well. ORAL REPORT: ROMERO RESERVOIR PUMP STATION PROJECT. Engineering Manager Mosby stated that this project was 98% complete with a few key items remaining including site clean-up, paving, and installation of a security gate at the entrance to the project. ORAL REPORT: UPDATE ON PARK LANE RESERVOIR IMPROVEMENTS. Manager Adjarian provided the update on the recently-completed operational improvements to Park Lane which is the oldest Reservoir in the distribution system.
PUBLIC OUTREACH/CONSERVATION	SECTION 6
REQUEST TO AMEND FY2000-01 PUBLIC INFORMATION BUDGET. Manager Adjarian stated that Rauch Communication Consultants is preparing the MWD fact sheet, formats, and folders. It is contemplated that the Board will be updated on the Ortega Reservoir cover project at the proposed workshop in late Spring. A motion was made by Director Puddicombe, seconded by Director Wilson, and carried unanimously to approve increasing the FY 2000/01 Public Information Budget by $4,300 from the District’s General Reserve Fund.
BUSINESS AND FINANCE	SECTION 7
APPROVAL OF ADDITIONAL ARBITRAGE REBATE SERVICES. Manager Adjarian stated that this item was reviewed and recommended for approval by the Finance Committee at its meeting of February 13, 2001. A motion was made by Director Wilson, seconded by Director Puddicombe, and unanimously carried to approve the engagement of Arbitrage Compliance Specialists, Inc. at a cost of $2,950 for additional IRS reports, and appropriated that amount from the District’s Capital Repair and Replacement Fund.
DIRECTOR AND STAFF MEETING REPORTS	SECTION 9
CACHUMA CONSERVATION RELEASE BOARD MEETING OF JANUARY 22, 2001. Member Unit Technical Issues Update. Member Unit Legal Issues Update. President Abel referenced the attachments in Section 9-A, which summarize current CCRB Member Unit Technical and Legal Issues, and briefly discussed the status of the draft Cachuma Water Rights EIR preparation. It was noted that new grant funding approvals totalled approximately $1,500,000 for this past year. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF JANUARY 22, 2001. Director Puddicombe briefly reported on this meeting. CENTRAL COAST WATER AUTHORITY MEETING OF JANUARY 25, 2001. Director Puddicombe reported that the CCWA Board meetings have now been scheduled to be "on call". REPORT ON SANTA BARBARA WATER PURVEYORS AGENCY MEETING, JANUARY 26, 2001. Director Wilson referenced the SBWPA meeting agenda, and discussed the problems with obtaining numbers for the drought buffer. Questions posed in the Watershed Sanitary Survey 2000 Update by SBWPA’s consultant remain to be answered. Director Wilson expressed an interest in attending the Santa Barbara County Water Cloud Seeding Workshop on February 27 and 28, 2001. A motion was made by Director Puddicombe, seconded by President Abel, and unanimously carried to authorize Director fees and related expenses incurred by Director Wilson’s attendance at the Santa Barbara County Water Agency Workshop. A report will be made at the March 20, 2001 Board Meeting. ACWA BOARD MEETING, JANUARY 26, 2001, SAN DIEGO; Board information. President Abel reported that ACWA is preparing a Members Needs Assessment Survey. Issues brought forward by ACWA were the energy crisis, the forthcoming water crisis, and global warming trends.
COMMITTEE REPORTS/RECOMMENDATIONS	SECTION 10
OPERATIONS COMMITTEE. Director Puddicombe stated that there was nothing to add to what had been reported earlier in the meeting. FINANCE COMMITTEE; Board information. Director Wilson stated that there was nothing to add to what had been reported earlier in the meeting. C. PUBLIC INFORMATION COMMITTEE; Board information. The ACWA Board heard a report on the results of its members Needs Assessment Survey. President Abel reported on the contents of the draft MWD Newsletter that is expected mid-March 2001. Director Bachman stated that the MWD Fact Sheet format samples could be presented at the March 20, 2001 Board meeting.
GENERAL MANAGER’S REPORT	SECTION 11
ACWA ADVANCED DUES PROGRAM. After much discussion, Director Puddicombe requested that Staff provide additional background information concerning the ACWA Advanced Dues Program at the March 20, 2001 Board Meeting. A motion was made by Director Puddicombe, seconded by Director Wilson, and carried unanimously to deposit the same amount of money contributed last year, directed Staff to return before the Board on March 20, 2001 with background information to remind the Board how the ACWA Program operates. ORAL REPORT ON RIVEN ROCK PARK WATER MAIN PROJECT. Manager Adjarian updated the Board on this item that was reviewed on February 2, 2001 by the Operations Committee. To date, $25,000 in funds have been provided by Mr. Terry Cunnngham. If contingency expenses are incurred and are reasonable, MWD would be willing to pay its fair share. Counsel Wullbrandt is preparing a draft agreement for consideration by Riven Rock Mutual Water Company. RECEIPT OF BIDS FOR REPLACEMENT OF HIGHLINE TRANSMISSION LINE BETWEEN DOULTON TUNNEL AND SOUTH PORTAL METER; Board ratification. Engineering Manager Mosby reported to the Board on the receipt of bids for relocating the South Portal Highline. Tierra Contracting submitted the lowest bid of $60,770 plus a 15% contingency ($69,670). Manager Mosby indicated that the Board appropriated $75,000 from the 1998 A Bond Fund for this project at its January 16, 2001 Board meeting. Manager Mosby recommended approving Tier’s Contracting bid of $60,770 plus a 15% contingency ($69,670 total), and maintaining the $75,000 appropriation from the 1998 A Revenue Bond funds. A motion was made by Director Puddicombe, seconded by Director Wilson, and unanimously carried to accept and approve the low bid of $60,670 plus a 15% contingency ($69,670 total) from Tierra Contracting for the South Portal Highline Relocation Project, to maintain the $75,000 appropriation, and to authorize the General Manager to proceed immediately with this vital relocation project. At this time, the Board recessed to closed session, pursuant to Government Code Sections 54956.9(c) 54958, and 54957, at 4:45 p.m.
LEGAL MATTERS	SECTION 12
RECESS TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (c); CLOSED SESSION/PENDING LITIGATION: ENVIRONMENTAL DEFENSE CENTER, INC., ET.AL. v NORMAN MINETA, SECRETARY OF COMMERCE, ET. AL., AND BRUCE BABBITT, SECRETARY OF INTERIOR, ET. AL. RECESS TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54958 (REAL ESTATE NEGOTIATIONS REGARDING PROPOSED EASEMENT ACQUISITION, UPRR RIGHT-OF-WAY BETWEEN EUCALYPTUS LANE AND NORTHEAST CORNER OF MBHOA PROPERTY LINE.) RECESS TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957(PERSONNEL MATTERS: GENERAL MANAGER’S ANNUAL PERFORMANCE REVIEW). The Board reconvened to open session at 6:15 p.m. President Abel reported that the Board took no action while in closed session for Item No. 12A. For Item No. 12B, the Board directed Counsel Wullbrandt to proceed with discussions with UPRR representatives. The Board took no action on Item 12C.
AGENDA ITEM REQUESTS	SECTION 14
Requests from Directors for items other than regular agenda items for next regular Board meeting scheduled for March 20, 2001 were as follows: Report on CWA Cloud Seeding Workshop held February 27-28, 2001. Report on ACWA Washington, D.C. Conference held February 25 – March 2, 2001. Update on ACWA Advanced Dues Deposit Program. General Manager’s Work Plan for Calendar Year 2001.
ADJOURNMENT
There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 6:20 p.m.
Approved: /s/ Jan E. Abel, President Attest: /s/ Frederick J. Adjarian, Secretary