MINUTES OF A SPECIAL 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, MAY 16, 2000

CALL TO ORDER AND ROLL CALL, DETERMINATION OF QUORUM

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

There were no comments from any members of the public during the public forum.

A. Minutes of April 12 (two meetings), April 18 and May 3, 2000 meetings.
B. Water Production Report for April 2000.
C. Water Sales Reports for April 2000.
D. Water Works Operation Report for April 2000.
E. Investment of District Funds.
F. Payment of Bills for April 2000.
G. March 2000 Cashflow Report with April 2000 Sales.
H. Third Quarter Financial Statements and Budget Report.
I.  Quarterly Report on Investment Policy.
J.  Accounts Receivable Write-Offs.

Several suggested changes were made to the minutes of April 12^th, 9:00 a.m. meeting and the April 18, 2000 meeting. The Board discussed and reviewed the payment of bills for April, 2000. A motion was made by Director Wilson, seconded by Director Bachman and unanimously carried to approve the consent calendar with the minutes as amended.

1. PADARO LANE WATER MAIN PROJECT/OSHA CITATION

Engineering Manager Tom Mosby explained that MWD had been cited for violation of two OSHA regulations during the Padaro Lane Project. The violation involved the District taking extraordinary measures to assist the project subcontractor, Allstate Boring, in breaking rock encountered during the jack and bore portion of the work. MWD believed that this work was being performed under the permit and guidelines established for the general contractor by OSHA. Mr. Mosby noted that the citation was classified as a general citation. Manager Adjarian stated that the District had never received a citation in the past from OSHA. He also noted that this matter was reviewed by the Operations Committee at its meeting of May 2, 2000. A motion was made by Director Wilson, seconded by Director Bachman and unanimously carried to approve payment in the total amount of $150 to the State of California Division of Occupational Safety and Health for two general violations that occurred during construction of the Padaro Lane Water Main Replacement Project and to bill Tierra Contracting for this amount.

2. PROPOSED FY 2000/01 CAPITAL REPLACEMENT PROJECTS SCHEDULE.

A motion was made by Director Abel, seconded by Director Puddicombe and unanimously carried to approve the 2000/01 Capital Replacement Projects Schedule. Counsel Wullbrandt suggested that the General Manager be authorized to post a Notice of Exemption for any additional projects added to the proposed schedule.

3. TRANSFER OF U.S. BUREAU OF RECLAMATION DISTRIBUTION FACILITIES, APPROVAL OF USBR CONTRACT.

Manager Adjarian noted that this agenda item was the culmination of the process started last summer regarding the transfer of the former Summerland Water District facilities (owned by USBR) to MWD. Manager Adjarian said that the reason for changing ownership was to enable the District to do necessary repairs on pipes without obtaining permission each time from the USBR. A motion was made by Director Bachman, seconded by Director Puddicombe and unanimously carried to: (1) approve the agreement with USBR relative to the transfer of the former Summerland Water District distribution facilities to MWD; and (2) appropriate $16,000 from MWD’s General Capital Repair and Replacement Reserve Fund for the USBR deposit.

4. STATUS ON SALE OF BUELL PROPERTY.

Engineering Manager Mosby updated the Board on the status of the Buell Reservoir property. He had talked to Mr. Peter Lawson at the County to request a copy of the Administrative Draft of the environmental document being prepared. Mr. Lawson had stated that he was not ready to release the document to the District. Manager Adjarian discussed with the Board the letter to send to the County stating that MWD had been treated unfairly. Counsel Wullbrandt said that the Planning and Development Department had made it extremely difficult for the Planning Commission to approve this project since other areas within the Toro Canyon Community Plan are being downsized.

5. REVIEW OF UPDATED DESIGN CONCEPT FOR DISTRICT BOARD ROOM/OFFICES

Manager Adjarian said the proposal to update the District Board Room and Offices had been reviewed by the Operations Committee. He noted that the current space utilization was poor. The remodel will include enlarging the Board room, and adding a small conference room along with several other additional offices. A motion was made by Director Abel, seconded by Director Drewry and unanimously carried to approve the expenditure of $1,000 to retain Mr. Don Sharpe, AIA to revise and update the design concepts for the Board meeting room and offices.

6. APPROVE NOTICE OF COMPLETIONS FOR: PADARO LANE WATER MAIN REPLACEMENT PROJECT, POSILIPO ROAD WATER MAIN REPLACEMENT PROJECT, NAKASONE WATER MAIN RELOCATION PROJECT, ROMERO RESERVOR WATER MAIN RELOCATION PROJECT.

A motion was made by Director Wilson, seconded by Director Drewry and unanimously carried by the Board of Directors to approve the Notices of Completion for the above projects.

7. GRANT OF EASEMENT – 880 COYOTE ROAD.

A motion was made by Director Drewry, seconded by Director Bachman and unanimously carried by the Board of Directors to approve and accept the grant of easement from Ms. Susan Van Atta for the proposed Coyote Road Water Main Extension Project.

1. REGION 8 CALIFORNIA REGIONAL ENVIRONMENTAL EDUCATION COORDINATOR (CREEC) FOR FISCAL YEAR 2000/01.

Manager Adjarian said that this program was part of a statewide effort to insure efforts to conserve water. It was noted that in previous years, MWD had contributed $200 for this program. Staff was recommending that the Board approve the same amount. A motion was made by Director Wilson, seconded by Director Abel and unanimously carried by the Board of Directors to approve a contribution of $200 in continued support of the Region 8 Regional Environmental Education Coordinator (CREEC) Network for the 2000/01 fiscal year.

2. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) SANTA BARBARA CHAPTER/REQUEST TO PARTICIPATE IN SPECIAL DISTRICT NEWSLETTER.

Director Abel pointed out that the CSDA newsletter began as an effort by local special districts to gain public recognition in the face of city annexations and other threats. She noted that the last such newsletter was sent out was approximately five years ago. It was consensus of the Board to refer this request to the Board’s Public Information Committee so that the Committee could review the proposed publication and provide a recommendation to the Board at its next regularly scheduled meeting in June.

 

 

ORDINANCES/RESOLUTIONS

A. PUBLIC HEARING AND ADOPTION OR ORDINANCE NO. 83 AMENDING SECTIONS 2.11, 3.5, AND 8.3 OF ORDINANCE NO. 82 RELATING TO BACKFLOW PROTECTION DEVICES, FEE SCHEDULE, AND WATER MAIN RELOCATION POLICY.

President Puddicombe opened the public hearing for public comment at 4:35 p.m. Manager Adjarian summarized the main points of this item for the Board. He noted that this proposed Ordinance No. 83 had already been before the Board last month for discussion, and had also been reviewed and recommended for approval by the Finance and Operations Committees. There being no public comment, the public hearing was closed at 4:45 p.m. A motion was made by Director Bachman, seconded by Director Drewry and carried with the following roll call vote to approve Ordinance No. 83 as presented:

AYES: Abel, Bachman, Drewry, Puddicombe, Wilson
NOES: None
ABSENT: None
ABSTAIN: None

B. REVIEW OF TAMPER CHARGE

Business Manager Evalyn Kerman reviewed staff’s memorandum about the suggested tamper charge. Manager Adjarian described recent events in the Montecito Water District’s service area where a charge of this type could be useful to deter tampering of MWD facilities by unauthorized individuals. It was noted that with the adoption of Ordinance No. 83 that the District may in the future be able to adopt by resolution specific charges and not have to adopt a new ordinance. Counsel Wullbrandt stated he would further research the various charges that could be imposed by MWD for consideration at a future Board meeting.

3. REVIEW OF LATE CHARGE.

The Board discussed assessing MWD customers a late charge for delinquent payment for water service. Manager Adjarian noted that MWD currently did not have such a charge in place, and that it was not fair for the majority of customers to be subsidizing a few consistently untimely customers. It was noted that many public and private utilities assess late charges. Water agencies throughout California have had such charges in place for quite a few years. In addition, Mr. Adjarian noted that staff currently spends an inordinate amount of time fielding phone calls plus sending out additional notices to late paying customers each month---all of which takes time away from serving good customers. Staff was asked to review the costs to be incurred, and what other water agencies and utilities are currently charging as late fees. The Board of Directors agreed in concept with the idea of a late charge. Both the Finance and Operations Committees were requested to review this item before it comes back to the full Board for further consideration.

A. APPEAL OF MR. CRAIG PRICE/MR. PERRY PERKINS.

Director Abel reported that the Appeals Committee had met with Mr. Price and Mr. Perkins to discuss their request for a credit for fees paid to the former Summerland Water District for a water allocation totaling $3,973 paid during the 1987-1993 drought period. The Appeals Committee recommended that the Board deny this request. A motion was made by Director Abel, seconded by Director Drewry and unanimously carried by the Board of Directors to deny the request for a credit for the water allocation fee of $3,973 previously paid to Summerland Water District.

B. REVIEW OF DRAFT MWD COMPENSATION PHILOSOPHY.

The Board discuss the proposed salary compensation philosophy statement prepared by MWD’s consultant, Mr. Alan Livingstone. The Board requested additional clarification of the statement and attachments. Manager Adjarian requested that this item be continued until such time that Mr. Livingstone can attend a Board meeting to answer the Board’s questions in regards to this item.

     Director Wilson had no information to report at this time relative to the Montecito Association.

         B.  CENTRAL COAST WATER AUTHORITY MEETING OF 4/20/00

     President Puddicombe, MWD’s CCWA representative, had nothing new to report regarding CCWA activities.

C.  CACHUMA CONSERVATION RELEASE BOARD MEETING OF 4/24/00

1. Ratify CCRB 2000/01 Budget

Director Abel said that the CCRB Board had already approved the CCRB 2000/01 budget and that CCRB was requesting ratification of that budget by individual member agencies. Mr. Chuck Evans, Consultant Manager for CCRB, reviewed with the Board the CCRB budget and answered the Board’s questions. A motion was made by Director Abel, seconded by Director Puddicombe and unanimously carried by the Board of Directors to ratify the CCRB 2000/01 Budget.

2. Member Unit Technical Issues Update

Director Abel noted that a report on this item was included in the May Board packet for Directors’ information.

3. Member Unit Legal Issues Update.

Director Abel noted that a report on this item was included in the May Board packet. She noted that the updates from the previous month were marked in boldface type to facilitate Directors’ review.

         B.  CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF 4/24/00.

Director Abel stated that the items of importance had already been covered in the Board meeting.

D. ACWA SPRING CONFERENCE OF MAY 10-12, 2000.

Since the majority of the Board and the Manager attended this conference there was no report given.

COMMITTEE REPORTS / RECOMMENDATIONS

A. OPERATIONS COMMITTEE

President Puddicombe indicated that all of the items reviewed by the Operations Committee had previously been discussed, and that there were no new items at this time.

B. FINANCE COMMITTEE

Director Wilson noted that all of the items reviewed by the Finance Committee had previously been discussed, and that there were no new items at this time.

C. PUBLIC INFORMATION COMMITTEE

Director Abel reviewed the content of the water quality edition of the newsletter, and stated that customers would be receiving it in early June.

GENERAL MANAGER’S REPORT

Given the late hour, Manager Adjarian deferred his report to the Board’s next regularly scheduled meeting in June.

1. DISTRICT COUNSEL REPORT

Counsel Wullbrandt did not have any new items to cover at this time.

CORRESPONDENCE/NEWS ARTICLES/REPORTS & DOCUMENTS

President Puddicombe referred to the recent correspondence received from Carpinteria Valley WD General Manager, Charles Hamilton, regarding Counsel Wullbrandt’s attendance on their behalf at CCRB and COMB Board meetings. Counsel Wullbrandt asked whether or not the MWD Board wanted him to continue to attend the CCRB and COMB Board meetings, along with the Attorneys/Managers meetings since only MWD would be paying these costs. Director Abel said that it was essential for Counsel Wullbrandt to continue to attend all of these meetings. The Board of Directors unanimously concurred with this position.

AGENDA ITEM REQUESTS

There were no Director’s requests for additional items to be placed on the next Board meeting agenda.

OTHER

There was no additional discussion or comments by Board members or Staff.

ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:54 p.m.

Approved:

_____________________________
Robert W. Puddicombe, President

Attest:

_________________________________
Frederick J. Adjarian, Secretary

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