REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, California

TUESDAY, March 21, 2006

1:00 p.m.
Directors’ Field Trip to

Review Phase 2 Construction Progress
on Ortega Reservoir Improvement Project

2:00 P.M.

1.  CALL TO ORDER, ROLL CALL, DETERMINATION OF QUORUM       

President Edmonston called the meeting to order at 2:00 p.m.

Directors Present:

President Robert M. Edmonston

Directors Jan E. Abel, W.W. Drewry, and Larry Wilson

Directors Absent:

Robert W. Puddicombe

Staff Present:

Bob Roebuck, General Manager

Toni Bailey, Business Manager

Tom Mosby, Engineering Manager

Chip Wullbrandt, District Counsel

Danny Rodriguez, Distribution System Superintendent

Lois Werner, Recording Secretary

Guests Present

Mark Poindexter, CPA, Poindexter & Assoc.

Bob Tmur, MSD

Diane Gabriel, MSD

Sam Frye, San Carlos Ranch

2.  PUBLIC FORUM           

There were no members of the public present who wished to speak on matters not on the agenda.

3.  CONSENT CALENDAR

Following Board discussion, it was moved by Director Drewry, seconded by Director Wilson, and unanimously carried to approve the Consent Calendar as corrected.

4.  Cachuma Matters

A.                 CACHUMA CONSERVATION RELEASE BOARD MEETING OF February 27, 2006

Director Abel reported on the subject meeting and called the Board’s attention to the materials provided in their agenda packets and distributed copies of the new brochure produced for COMB/CCRB.

B.                 CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF February 27, 2006

Director Abel reported on the subject meeting and briefly discussed her recent, COMB/CCRB funded trip to Washington DC with Mr. Wullbrandt to seek funding for local water-related projects.  COMB and CCRB will be holding special workshop meetings on reorganization, at the request of Santa Ynez ID #1.  The first of these meetings will be held in April.

C.                COMB/CCRB Managers & Attorneys Meeting of March 1, 2006

Mr. Roebuck reported on the subject meeting.  A watershed sanitary survey has just been completed.  These surveys are done every five years.  Discussions on a second barrel (pipeline) for the South Coast Conduit continue.

5. LEGAL MATTERS                                                                                                                     

A.                 Recent and Pending Legal Matters REview – Oral Report

Mr. Wullbrandt reported on his recent activities and legal matters of interest to the Board including the status of the Grand Jury investigation into special districts.  A written report may be released in June, and no advance information will be available.

B.                 REsolution No. 2012 — Charges for Late Payments

Mr. Wullbrandt introduced this and he and the Finance Committee answered Directors’ questions.  Following discussion, it was moved by Director Drewry, seconded by Director Wilson, and carried by the following roll-call vote to approve Resolution No. 2012 with the amount of the first month’s late charge changed from 8% to 6%

AYES:  Directors Abel, Drewry, Edmonston, and Wilson

NOES:  None

ABSENT:  Director Puddicombe

C.                Late Charge Policy

The Finance Committee commented briefly on this item.  Following discussion the matter was dismissed.

------------------------------------ Legal Counsel Departed at this point------------------------------------

6.  district Operations Report

A.                 Ortega Reservoir Project Status Report

Mr. Roebuck called the Directors’ attention to the report in their agenda packets.

B.                 Water Supply Reliability Status Report (Oral)

Mr. Roebuck and Director Edmonston presented this item on options being explored for adequate water supply in dry years.

C.                Water Supply REport for the 2005/06 Water Year

Mr. Roebuck presented this item.  He will place and schedule with CCWA an order for 1,280 AF of State Water for the 2006 calendar year.

D.                Distribution System Status REport

There was no discussion on this informational item.

E.                 Underground Storage Tank Cleanup Program

Mr. Roebuck introduced this item.  Following discussion, it was moved by Director Abel, seconded by Director Drewry, and unanimously carried to authorize the General Manager to execute the Agreement for Environmental Services with DMI-EMK Environmental.

F.                 Age of Distribution System MAINS Report

Mr. Roebuck presented this item and he and Mr. Mosby answered Directors’ questions.  Mr. Mosby agreed that the report should include information on the distribution system in Summerland.

7.  Business / Financial

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

Mr. Roebuck introduced this item and the following was read into the minutes:

“A resolution will be presented to the Board for adoption at a regular Board meeting of June 20, 2006 (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 2006-07 do not exceed the costs reasonably borne by the District for providing the services for which the fees, rates and charges were made.”

B.                 Time Certain 3:00 p.m.—Fiscal year 2004/05 Financial Audit –

Mark Poindexter, CPA, Poindexter & Company, presented his company’s audit of the District’s finances for FY 2004/05 and answered Directors’ questions.  Following discussion, it was moved by Director Drewry, seconded by Director Wilson, and unanimously carried to accept the Audited Financial Statements for the 2004/05 fiscal year as presented.  Mr. Roebuck agreed to give a status report within six months on the action items listed in his response letter to the audit.

C.                2006/07 Annual Budget Cost of Living Adjustment (COLA)

Ms Bailey and Mr. Roebuck presented this item and answered Directors’ questions.  Following discussion, it was moved by Director Drewry, seconded by Director Abel, and unanimously carried to tentatively approve  a 4.1 percent cost of living adjustment increase for all District employees except the General Manager and the use of 4.1 percent by staff to project price sensitive operating expense increases in the 2006/07 budget.  (Amount subject to adjustment)

D.                Report on 98-A Bond Projects

Ms Bailey presented this item and answered Directors’ questions.

E.                 Report on Capital Project Expenditures

Ms Bailey presented this item and she and Mr. Mosby answered Directors’ questions.

8.  GENERAL MANAGER’S REPORT                                                                                       

A.                 Time Certain 2:00 p.m. — Water Meter for Montecito Sanitary District (MSD) Maintenance Building

Mr. Tmur asked the Board for clarification on the procedure for appealing the denial of the MSD request to eliminate the capital cost recovery fee associated with the purchase of a new meter.  The item will be referred to the Appeals Committee for their recommendation if MSD chooses to appeal.

B.                 Time Certain 3:30 p.m.— Distribution System Operator Certification Program

Danny Rodriguez, MWD Distribution System Superintendent, reported on the requirements and training necessary for distribution system operators to receive certification.

C.                Ongoing Projects Update

Mr. Roebuck presented his ongoing projects update.

D.                Water Treatment Superintendent Resignation

Mr. Roebuck introduced this item and answered Directors’ questions.

E.                 Public Hearing — Resolution No. 2011 Required by CCWA Resolutions 92-2 and 92-11

The public hearing on Resolution No. 2011 was opened at 4:50 p.m.  There being no members of the public present who wished to speak on this matter, the hearing was closed at 4:51 p.m.  It was moved by Director Wilson, seconded by Director Drewry, and carried by the following roll-call vote to approve Resolution No. 2011 as presented:

AYES:  Directors Abel, Drewry, Edmonston, and Wilson

NOES:  None

ABSENT:  Director Puddicombe

9.  DIRECTOR AND STAFF MEETING REPORTS

A.                 SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF February 27, 2006

Director Wilson reported on the subject meeting.  Director Wilson is now the Special District representative to LAFCO.

10.  COMMITTEE REPORTS/RECOMMENDATIONS                                                            

A.                 OPERATIONS COMMITTEE

Director Edmonston reported that the activities of the Operations Committee had been covered elsewhere in the meeting.

B.                 FINANCE COMMITTEE

Directors Drewry and Wilson reported that the activities of the Finance Committee had been covered elsewhere in the meeting.

C.                PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee has not met, but will be meeting soon to begin planning the next newsletter.

11.  Board information Items

 

No action was taken on these informational items presented to the Board.

12.  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 18, 2006.

13.  ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 4:54 pm.

                                                                                             Approved:

                                                                                            ____________________________            

                                                                                             Robert M. Edmonston, President

Attest:

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