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, MARCH 16, 2004

1.  CALL TO ORDER AND ROLL CALL

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

Mr. Ellis Taylor spoke to the Board on the subject of the possible theft of water through his meter.  The Board requested that Mr. Taylor speak to the General Manager about bringing his concerns to the Board Appeals Committee.

3.  LEGAL MATTERS               

A.                 Recess to Closed Session Pursuant to Government Code Section 54956.9(A) Pending Litigation: Ocean View Estates Homeowners’ Association v Montecito Water District, Et al.; Case No. 1067147

The Board adjourned to closed session at 2:04 p.m. to discuss the above item.

The Board reconvened to open session at 3:23 p.m.  President Drewry reported that no action was taken.

Following the 3:30 time certain item, the Board adjourned again to closed session on this item at 4:15 p.m.

The Board reconvened to open session at 4:55 p.m.  President Drewry reported that no action was taken.

B.                 Review of Pending and Completed items

Mr. Wullbrandt reported to the Board on his current projects for MWD.  The Board directed staff to look into drafting policy removing standby meters from service in the District and bring the issue to the next meeting.

4.  CONSENT CALENDAR 

Following Board discussion, it was moved by Director Abel, seconded by Director Puddicombe, and unanimously carried to approve the consent calendar as revised.

5. district Operations Report 

A.                 Oral Report: Ortega Reservoir Cover Project – Status Report

Mr. Roebuck noted that all developments in the Ortega Reservoir Cover Project had been, or would be covered elsewhere in the meeting.

B.                 Professional Services for Re-design of Ortega Reservoir Cover Project

Mr. Roebuck introduced this item and answered questions from the Board.  Following Board discussion, it was moved by Director Abel, seconded by Director Edmonston, and unanimously carried to approve the civil site engineering design service proposal from Penfield and Smith, in the total amount of $154,812 (MWD share: $77,406) and authorize the General Manager to execute the consulting engineering services proposal (including all supporting engineering services for geotechnical, piping and hydraulics, and project agency coordination) subject to the stipulations in the revised staff memo on this item.

C.                Professional Services for Ortega Reservoir Cover Project Environmental Impact Report

Mr. Roebuck introduced this item and answered Directors’ questions.  Following Board discussion, it was moved by Director Abel, seconded by Director Edmonston, and unanimously carried to approve the environmental services proposal dated March 8, 2004 in the amount of $55,969 (MWD share: $27985) from Padre and Associates for the preparation of an Environmental Impact Report for the Ortega Reservoir Cover Project, and to include MWD’s 50% share of the cost of this service in request for reimbursement from the State Revolving Fund Loan. 

 Director Abel requested that, in the future, service proposals on sensitive projects be reviewed by Counsel before being brought to the Board.

D.                STATUS REPORT ON CONSTRUCTION / MAINTENANCE PROJECTS

Mr. Mosby reported on the status of various pending District construction and maintenance projects and answered questions from the Board.  Following Board discussion, it was moved by Director Abel, seconded by Director Wilson, and unanimously carried to ratify the action of the President in executing the MWD / West Mountain Drive Homeowners’ West Mountain Drive Water Main Extension Agreement.

E.                 MWD / Ivydene Main Extension Project, Award of Contract

Mr. Mosby introduced this item and answered Directors’ questions.  Following Board discussion, it was moved by Director Wilson, seconded by Director Abel, and unanimously carried to approve the bid from Lash Construction in the amount of $117,695 for this project, authorize the General Manager to issue a notice of award of contract to Lash Construction, direct staff to contact Ivydene Water Company and inform them that this work has been approved by the Board of Directors and a notice of award of contract was issued to Lash Construction, and ratify the action of the MWD Board President in the execution of the MWD / Ivydene cost share water main extension agreement for this project.

F.                 MWD Water Supply / Demand and Conjunctive Use REport, Presentation by Dr. Steve Bachman

Mr. Roebuck introduced Dr. Bachman, who presented his report on MWD water supply and demand and the feasibility of MWD participation in a conjunctive use project.  Following the presentation, Dr. Bachman answered questions from the Board.

6.  Resolutions      

A.                 Resolution No. 1978 And financing of Cachuma Project Authority Debt

Following Board discussion, it was moved by Director Wilson, seconded by Director Drewry, and unanimously carried to approve Resolution No. 1978 as revised and direct MWD’s Cachuma Operation and Maintenance Board representative to vote to approve the refinancing of the 1993 CPA bonds. 

B.                 Notice Regarding Proposed Resolution Relative to Exemption from Proposition 4 Spending Limitations

President Drewry read the following statement into the record:

“A resolution will be presented to the Board for adoption at a regular Board meeting of June 15, 2004 (which meeting for adoption must be at least 15 days after this statement), which resolution shall establish that the District’s various user fees, rates and charges for Fiscal Year 2004-05 do not exceed the costs reasonably borne by the District for providing the services for which the fees, rates and charges were made.”

7.  GENERAL MANAGER’S REPORT                                                                                       

A.                 MWD Reference Library

Mr. Roebuck called the Board’s attention to the index for MWD reference materials found in their agenda packets.

B.                 Priority Items Update

Mr. Roebuck answered questions on the status of ongoing projects not discussed elsewhere in the meeting.

C.                Oral: Water Quality Update

Mr. Roebuck reported that water samples had been sent to the lab, and preliminary reports looked good.  Final results will be in before the end of March.

D.                Oral: Pending Workshop

– Water Use Classifications – March 19

Mr. Roebuck reminded the Board of this upcoming workshop.

8.  DIRECTOR AND STAFF MEETING REPORTS

A.                 CACHUMA CONSERVATION RELEASE BOARD MEETING OF February 23, 2004

1.                  State Water Resources Control Board Hearing Technical Issues Update

Director Puddicombe attended the subject meeting in Director Abel’s absence.  Director Abel called the Board’s attention to materials found in their agenda packets.

B.                 CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF February 23, 2004

Director Puddicombe reported on the subject meeting.

C.                CENTRAL COAST WATER AUTHORITY BOARD MEETING OF February 26, 2004

Director Puddicombe reported that CCRB did not meet in February.

D.                SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF February 23, 2004

Director Wilson reported on the subject meeting.

E.                 ACWA 2004 Washington D.C. Conference, February 22-25, Washington D.C.

Director Abel asked to postpone the report until the next meeting, due to time constraints and the large volume of information she had to report.

9.  COMMITTEE REPORTS/RECOMMENDATIONS                                                              

A.                 OPERATIONS COMMITTEE

Director Puddicombe reported that Operations Committee activities had all been covered elsewhere in the meeting.

B.                 FINANCE COMMITTEE

Director Wilson reported that all Finance Committee activities had been covered elsewhere in the meeting.

C.                PUBLIC INFORMATION COMMITTEE

Director Abel reported that the next newsletter will be finalized in April and the District website will soon have a section showing the staff.

11.  AGENDA ITEM REQUESTS       

There were no requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for April 20, 2004.

12.  ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:58 p.m.

Approved:

__________________________________   
William W. Drewry, President

Attest:

__________________________________
Robert L. Roebuck,  Secretary