No members of public were present.

1. Oath of office for new director Robert Edmonston

Manager Adjarian administered the Oath of Office to Director Robert M. Edmonston.

1. Ratification of FY 2002/03 CCRB/ID #1 budget

Mr. Evans presented the CCRB FY 2002-03 Budget and answered questions from the Board. After Board discussion, it was moved by Director Wilson, seconded by Director Drewry and carried with Director Edmonston abstaining to ratify the Cachuma Conservation Release Board FY 2002-03 Budget and to approve MWD’s share to be included in next year’s budget.

Mr. Adjarian and Engineering Manager Mosby reviewed this matter for the Board and answered Directors’ questions. After discussion, it was moved by Director Puddicombe, seconded by Director Abel and carried with Director Edmonston abstaining, to approve the six recommendations of the Operations Committee as presented in the staff memo on this item.

Mr. Adjarian presented Mr. Bradley Hess of INFRANEXT and briefly reviewed the item for the Board. Mr. Hess answered questions from the Directors. Mr. Wullbrandt suggested that the consent letter and letter of authorization for building permit from INFRANEXT, dated May 10, 2002, be revised to make clear that the lease agreement in question is between Santa Barbara Cellular Systems (dba AT&T Wireless) and MWD and that the changes to the site are in the nature of maintenance, as allowed by the existing agreement, and will not add any other service providers or additional service. Following Board discussion, it was moved by Director Puddicombe, seconded by Director Drewry and carried, with Director Edmonston and Director Wilson abstaining, to authorize the manager to consent to the limited changes in the physical facilities at the Bella Vista site for the Santa Barbara Cellular Systems leased facilities and to execute any necessary notice of consent for the County of Santa Barbara related to those facility changes conditioned upon written confirmation that this does not involve an expansion of service or provision for additional service provider(s) or an assignment of the lease.

3. ORtega RESERVOIR UPGRAde Project
   
1. REQUEST BY PADRE ASSOCIATES FOR AMENDMENT TO ENGINEERING SERVICES CONTRACT

Mr. Adjarian introduced Mr. Steve Tanner, of Padre Associates, to the Board. Mr. Tanner reviewed Padre’s request to augment its engineering design services budget for the Ortega Upgrade Project a total of $50,000 ($25,000 MWD share) and answered Directors’ questions. Following Board discussion, it was moved by Director Puddicombe, seconded by Director Wilson, and carried, with Director Edmonston abstaining, to approve the amendment to Padre Associates’ Engineering Services Contract as presented contingent on approval by CVWD (including their $25,000 cost share).

2. COMB Security Fencing Update

Mr. Adjarian updated the Board on the status of the COMB Fencing Project at Ortega Reservoir. He called the Board’s attention to the May 16, 2002 letter from Donna Payne to Bob Wignot of COMB.

4. RIVEN ROCK WATER MAIN EXTENSION PROJECT PHASE 2/AWARD OF BID

Mr. Adjarian and Mr. Mosby updated the Board on the status of the project. Following Board discussion, it was moved by Director Puddicombe, seconded by Director Wilson and carried, with Director Edmonston abstaining, to approve all four Operations Committee recommendations presented in the staff memo on this item.

5. Park Lane Main Replacement Project, Award of Bid

Mr. Adjarian and Mr. Mosby updated the Board on the status of the Park Lane project. Following Board discussion, it was moved by Director Puddicombe, seconded by Director Drewry and carried, with Director Edmonston abstaining, to approve the receipt of bids for the project and award a contract to Tierra Contracting, subject to Tierra’s completion of all MWD contractual requirements.

6. proposed REstructuring of MWD water treatment department

Mr. Adjarian briefly reviewed this information item for the Board.

7. Proposed change of District retirees’ medical insurance eligibility requirement and amendment of District calpers contract for final compensation calculations

Mr. Adjarian and Business Manager Kerman briefly outlined for the Board the proposed changes in retirees’ medical insurance eligibility requirement and proposed amendment of MWD’s CalPERS retirement contract. Following Board discussion, it was moved by Director Puddicombe, seconded by Director Drewry and carried, with Director Edmonston and Director Wilson abstaining, to approve the proposed changes.

Director Wilson briefly reviewed LAFCO’s proposed FY 2002-03 Budget for the Board and answered Directors’ questions.

Mr. Adjarian reviewed the proposed resolution for the Board. After Board discussion, it was moved by Director Puddicombe, seconded by Director Drewry and carried by the following roll call vote to pass Resolution No. 1934:

Mr. Adjarian presented Resolution No. 1935 to the Board. It was moved by Director Puddicombe, seconded by Director Drewry and carried by the following roll call vote to pass Resolution No. 1935:

Ayes: Directors Abel, Drewry, Puddicombe, and Wilson
Noes: None
Abstain: Director Edmonston
Absent: None

President Abel called the Directors’ attention to the Technical Issues Report included in their Board Packets. President Abel also informed the Board that CCRB and COMB have combined their meetings. Mr. Evans addressed the information provided to the Board on Steelhead Projects Grant Funding Lobbying Efforts for 2002-03.

President Abel had nothing to report other than the combining of COMB and CCRB meetings.

Director Puddicombe reported on the subject meeting. Discussion at the meeting focussed on GAC filters and use of domestic and/or overseas suppliers.

Director Wilson reported on the subject meeting and updated the Board on the CSDA/Santa Barbara County Chapter, Lompoc Hospital District’s efforts regarding changes to lafco’s proposed budget for fy 2002/03. He also called the Board’s attention to the new LAFCO information publication.

Director Wilson was not able to attend, but called the Board’s attention to the minutes of the subject meeting included in the Board Packet.

Director Puddicombe had no information that had not already been covered elsewhere in the meeting.

Directors Wilson and Drewry updated the Board on the activities of the Finance Committee, in particular, their review of the draft MWD 2002-03 Budget.

President Abel updated the Board on the activities of the Public Information Committee, in particular, the Water Availability Charge Public Hearing mailing, the Annual Water Quality Newsletter, and the May 15, 2002 Montecito History Walk beginning at the Bella Vista Treatment Plant.

Mr. Adjarian highlighted for the Board the new General Manager’s Workplan for FY 2002-03.

Mr. Adjarian brought the Board up to date on the demolition of the old Seaview well facilities, the Upper Toro Canyon Main Replacement Project, the LAFCO Municipal Service Review process and the Governor’s Budget Update.

Mr. Adjarian reminded the Board of the upcoming MWD Draft Budget Workshop on May 28, 2002.

Mr. Adjarian reminded the Board of the upcoming meeting on June 4, 2002 to consider the Miramar Beach Main Extension agreement and possible public hearing for a resolution of necessity for the Union Pacific Railroad easement.

Mr. Adjarian reminded the Board that the next regular meeting of the Board on June 18, 2002 will include the consideration of the FY 2002-03 MWD Budget.

Mr. Wullbrandt reported on the status of AB 2645 and the Transfer of usbr (formerly Summerland County WD) Facilities to mwd.

There were no requests from Directors for items other than regular agenda items to be included for next regular Board meeting scheduled for June 18, 2002.

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

___________________________
Jan E. Abel, President

Attest:

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Evalyn Kerman, Assistant Secretary