REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, California

TUESDAY, May 16, 2006

2:00 P.M.

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

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

Directors Present:

Directors Jan E. Abel, W.W. Drewry, Robert W. Puddicombe (left meeting at 4:15 p.m.), and Larry Wilson

Directors Absent:

President Robert M. Edmonston

Staff Present:

Bob Roebuck, General Manager

Toni Bailey, Business Manager

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

Kate Rees, CCRB General Manager

2.  PUBLIC FORUM           

There were no members of the public present who wished to comment on items not on the agenda.

3.  CONSENT CALENDAR

The Minutes of April 18, 2006 were removed from the Consent Calendar. Following Board discussion, it was moved by Director Abel, seconded by Director Drewry, and unanimously carried to approve the Consent Calendar as presented.  Director Abel moved that the minutes of the April 18, 2006 meeting be amended to reflect that Director Puddicombe seconded the motion on item 4-A and to show that the vote was four to one. The motion was seconded by Director Drewry and Director Wilson called for a roll-call vote.

AYES: Directors Abel and Drewry

NOES: Director Wilson

ABSENT: Directors Edmonston and Puddicombe

Note:   Subsequent to the meeting it was determined that there were errors in the minutes of April 18, 2006. therefore, a revised set of minutes for that meeting will be reconsidered by the Board at their meeting on June 20, 2006.

4. Time Certain Item; 2:00 p.m.

A.                 Ratification of 2006-07 CCRB/ID#1 Budget

Director Abel introduced Ms Kate Rees, CCRB Manager, who presented the CCRB/ID#1 2006/06 Budget and answered Directors’ questions.  Following discussion it was moved by Director Abel, seconded by Director Drewry, and unanimously carried to ratify the CCRB/ID#1 Budget as presented.

5. Cachuma MATTERS

A.                 CACHUMA CONSERVATION RELEASE BOARD MEETING OF April 24, 2006

Director Abel reported on the subject meeting and called Directors’ attention to the materials included in their agenda packets.

B.                 CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF April 24, 2006

Director Abel reported on the subject meeting.

C.                Special CCRB/COMB Meeting of April 27, 2006

Director Abel reported on the subject meeting, which discussed reorganization of the two agencies.

D.                Cachuma managers AND attorneys MEETING OF may 3, 2006

Mr. Roebuck & Mr. Wullbrandt reported on the subject meeting.

6. LEGAL MATTERS                                                                                                                     

A.                 Recent and Pending Legal Matters Review (Oral)

Mr. Wullbrandt reported on his recent activities and legal matters of interest to the Board.

B.                 Discussion of D-1641 JUDGMENT (oral)

Mr. Wullbrandt discussed with the Board this appellate court judgment relating to the State Water Resources Control Board and answered Directors’ questions.

--------------------------------------------- Legal Counsel Departed---------------------------------------------

7.  district Operations Report

A.                 Ortega Reservoir Project Status Report and costs to date

Mr. Roebuck presented the latest status report on the Ortega Reservoir Improvement Project.

B.                 Vons Shopping Center Water Main Break and Replacement

Mr. Roebuck presented this item and answered Directors’ questions. Following discussion, it was moved by Director Abel, seconded by Director Puddicombe, and unanimously carried to approve the expenditure of approximately $22,500 from the 1998A Bond for the emergency replacement of this District main.

8. Business

A.                 Nine month Financial Statement and Budget Report

Ms Bailey presented the third quarter financials and answered Directors’ questions.

B.                 Nine Month Investment Report

Ms Bailey presented the third quarter investment report and answered Directors’ questions.

C.                Annual Cost of Living Adjustment

Ms Bailey presented this item and answered Directors’ questions. Following discussion it was moved by Director Drewry, seconded by Director Puddicombe, and unanimously carried to approve a 4.1 percent cost of living increase for all District employees (except the General Manager) to be used by staff when preparing the 2006/07 Budget.

D.                Review of District Capital Cost REcovery and Connection Fees

Ms Bailey presented this item and answered Directors’ questions. Following discussion it was moved by Director Drewry, seconded  by Director Wilson, and unanimously carried to conceptually approve the proposed schedule of MWD’s Capital Cost Recovery and Connection fees as presented in the agenda packet.

E.                 Proposed CCWA Budget

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 approve $4,982,081 for MWD’s estimated share of the CCWA annual budget.

9.  GENERAL MANAGER’S REPORT                                                                                       

A.                 Ongoing Projects Update

Mr. Roebuck presented his summary of ongoing projects.

B.                 Carpinteria Valley Water District Agreement with Plains Exploration and Production Company (Oral)

Mr. Roebuck presented this item

C.                Staff Vacancies (oral)

Mr. Roebuck discussed with the Board recent staff vacancies and promotions.

10.  DIRECTOR AND STAFF MEETING REPORTS

A.                 SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF April 24, 2006

Director Wilson reported on the subject meeting.

B.                 April 2006 LAFCO meeting

Director Wilson reported on the subject meeting.

11.  COMMITTEE REPORTS/RECOMMENDATIONS                                                            

A.                 OPERATIONS COMMITTEE

Director Puddicombe had already left the meeting and there was no report.

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 was at work on the water quality issue of the newsletter, which will be out in June. A special postcard will be mailed in June to MWD and CVWD customers to remind them to use water conservatively in June while the Ortega Reservoir is still off-line. The Committee is also working on presentation of information on rates and charges when the budget is passed.

12.  Board information Items

 

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

13.  AGENDA ITEM REQUESTS                                                                                                

There were no requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for June 20, 2006.

14.  ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:20 pm.

                                                                                             Approved:

                                                                                            ____________________________            

                                                                                             Robert M. Edmonston, President

Attest:

__________________________________