BOARD MINUTE - May 22, 2001

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, MAY 22, 2001

CALL TO ORDER AND ROLL CALL

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

Directors Present:	Directors Abel, Bachman, Drewry, Puddicombe, Wilson
Directors Absent:	None
Staff Present:	Fred Adjarian, General Manager Evalyn Kerman, Business Manager Tom, Mosby, Engineering Manager Chip Wullbrandt, District Counsel Anita Leski, Secretary
Guests Present:	Catherine Lee, Montecito Association

PUBLIC FORUM No members of the public were present.	SECTION 2
CONSENT CALENDAR Minutes of April 17, 2001 Board Meeting Water Production Report for April 2001 Water Sales Reports for April 2001 Water Works Operation Report for April 2001 Investment of District Funds Payment of Bills for April 2001 March 2001 Cash Flow with April Sales Report on Distribution System and Fire Flow Upgrade Program, Water Availability, Charge, and 1998 A Bond Project Funds as of March 31, 2001 FY 2000-01 Nine Month Financial Statements and Budget Report Nine Month/FY 2000-01 MWD Investment Report President Abel requested that the Minutes of the April 17, 2001 Board Meeting be removed from the Consent Calendar for discussion and revision. A motion was made by Director Drewry, seconded by Director Puddicombe, and unanimously carried to approve the April 17, 2001 Board Minutes as amended. A motion was made by Director Puddicombe, seconded by Director Wilson, and unanimously carried to approve the Consent Calendar as amended.	SECTION 3
ENGINEERING/DISTRIBUTION/TREATMENT A. AMENDMENT OF PROFESSIONAL SERVICES CONTRACT WITH PADRE ASSOCIATES, INC. FOR ORTEGA RESERVOIR COVER PROJECT. Manager Adjarian briefly reviewed Padre Associates proposal, and stated that this amendment was reviewed and recommended for Board approval by the Operations Committee at its meeting of May 16, 2001. A motion was made by Director Puddicombe, seconded by Director Bachman, and unanimously carried to approve Padre Associates’ proposal for additional services needed to complete the preliminary engineering, environmental, public outreach, and institutional coordination tasks in the amount not-to-exceed an additional $87,900. MWD’s cost will be $43,950. No appropriation of funds from the 1998-A Bonds is required because this amount is already included in the FY 2001/02 capital budget. B. ORAL REPORT: UPDATE ON ORTEGA RESERVOIR CHLORINATION STATION. Engineering Manager Mosby stated that he expected chlorination station start-up within the next week. All other aspects of the project were moving along. C. ORAL REPORT: REPORT ON INSPECTION OF DOULTON TUNNEL. Mr. Mosby briefed the Board of Directors about the inspection of the tunnel, its current condition, and responded to questions from Directors. He reported that repairs to the telephone line traversing the tunnel were scheduled to be completed within the next two weeks. D. ORAL REPORT: UPDATE ON RIVEN ROCK WATER MAIN EXTENSION PROJECT. Mr. Mosby and Counsel Wullbrandt announced that the Riven Rock Board of Directors had approved MWD’s revised changes, and that it was anticipated that the agreement would be signed by the end of the week.	SECTION 5
PUBLIC OUTREACH/CONSERVATION REQUEST FOR SUPPORT FROM CALIFORNIA URBAN WATER CONSERVATION COUNCIL (CUWCC). A motion was made by Director Puddicombe, seconded by Director Wilson, and unanimously carried to contribute $200, to be taken from the 2000/01 water conservation budget, to the CUWCC for calendar year 2001.	SECTION 6
BUSINESS AND FINANCE CONSIDERATION OF MWD RESERVES DESIGNATION. Manager Adjarian stated that the Finance Committee had reviewed and recommended the designated reserves for Board approval at its April 23, 2001 meeting. A motion was made by Director Wilson, seconded by Director Drewry, and unanimously carried to establish the reserve categories with the initial amounts as shown, subject to further review and consideration by the Finance Committee and the Board of Directors. ENGAGEMENT OF DISTRICT AUDITOR. Business Manager Kerman stated that this item had been reviewed and recommended for Board approval by the Finance Committee at its May 14, 2001 meeting. A motion was made by Director Puddicombe, seconded by Director Drewry, and unanimously carried to approve the engagement of MacFarlane, Faletti and Co.,LLP to perform the annual District audit dated June 30, 2001, 2002, and 2003.	SECTION 7
ORDINANCES/RESOLUTIONS A. RESOLUTION NO. 1912: REQUEST TO ANNEX DISHION PROPERTY TO THE MWD – 1090 TORO CANYON ROAD (APN 155-020-17). Manager Adjarian stated that, at its May 16, 2001 meeting, the Operations Committee recommended that the Board approve the petition for the annexation of the Dishion property to the MWD. A motion was made by Director Puddicombe, seconded by Director Wilson, and unanimously carried by the following roll call vote to adopt Resolution No. 1912, as amended, with the stipulation that the owners comply with the MWD’s terms and conditions for annexation. Counsel Wullbrandt was directed to assist staff in finalizing the wording for the appropriate CEQA categorical exemption. Ayes: Directors Abel, Bachman, Drewry, Puddicombe, and Wilson Noes: None Abstain: None President Abel recessed the Board at 3:30 p.m., and reconvened the meeting at 3:45 p.m.	SECTION 8
DIRECTOR AND STAFF MEETING REPORTS A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF APRIL 23, 2001. State Water Resources Control Board Hearing Technical Issues Update. Member Unit Legal Issues Update. Consideration and Approval of CCRB Budget. Salmon Funding/Washington D.C. Trip, April/May 2001. President Abel reviewed the monthly operation and legal reports. On July 2^nd, the hearing date will be set for the EDC suit. August 3^rd has been set for the Crawford/Hall hearing. A motion was made by Director Puddicombe, seconded by Director Drewry, and unanimously carried to ratify the CCRB FY 2001/02 budget of $2,188,000 and MWD’s share of $113,800. Counsel Wullbrandt highlighted those legislators and federal agency staff with whom he met during his trip to Washington on salmon funding matters. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF APRIL 23, 2001. President Abel reported that work is proceeding on the remodel drawings for the new COMB building. She announced that the COMB budget had been adopted at its April 23, 2001 meeting. CENTRAL COAST WATER AUTHORITY BOARD MEETING OF APRIL 18, 2001. Director Puddicombe reported on the April 18, 2001 CCWA Board Meeting. INDEPENDENT SPECIAL DISTRICTS SELECTION COMMITTEE MEETING OF APRIL 30, 2001: LAFCO ELECTION. President Abel announced that Director Tim Cambell, with the Santa Ynez Resource Conservation District, was re-elected to LAFCO. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION/SANTA BARBARA CHAPTER MEETING OF APRIL 30, 2001 MEETING. Director Wilson reported on the April 30^th meeting at which the County Auditor-Controller discussed the new LAFCO fees to be paid by Special Districts effective in FY 2001/02. SANTA BARBARA WATER PURVEYORS AGENCY QUARTERLY MEETING, APRIL 27, 2001. Ratification of Proposed SBWPA Final Budget for FY 2001-02 Payment of Budget Share; Board Action. Director Wilson reviewed this item with the Board of Directors. A motion was made by Director Puddicombe, seconded by Director Drewry, and unanimously carried to ratify the SBWPA FY 2001/02 budget of $43,200 and MWD’s share of $479.43.	SECTION 9
COMMITTEE REPORTS/RECOMMENDATIONS OPERATIONS COMMITTEE. Director Puddicombe stated that he had nothing additional to report. FINANCE COMMITTEE. Director Wilson suggested that the Finance Committee and the Operations Committee jointly hold a workshop to clarify the timing of current District capital improvement projects. The next Finance Committee was scheduled for June 12^th at 2:00 p.m. PUBLIC INFORMATION COMMITTEE. Newsletter Update. Water Availability Charge Notice Mailing. President Abel reported that the next Public Information Committee meeting was scheduled for June 6^th. Notices will be mailed to customers by June 1^st regarding the public hearing for the water availability charge.	SECTION 10
GENERAL MANAGER’S REPORT PENDING ISSUES STATUS REPORT. Manager Adjarian briefly updated the Board on the following issues: MWD/MFPD Fire Hydrant Replacement Program MWD Board/Office Renovation Miramar Beach Main Extension MWD Focused Assessment Plan B. ORAL REPORT: MWD DRAFT BUDGET WORKSHOP, JUNE 5, 2001. Manager Adjarian announced that the Board workshop to review the draft budget would be from 11:00 a.m. until 3:00 p.m. in the Board meeting room.	SECTION 11
LEGAL MATTERS ORAL REPORT: STATUS REPORT ON TRANSFER OF USBR (FORMERLY SUMMERLAND CWD) FACILITIES TO MWD. Counsel Wullbrandt updated the Board of Directors on the status of the transfer of the USBR facilities from the old Summerland CWD to MWD. RECESS TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957 (PERSONNEL MATTERS) GENERAL MANAGER’S PERFORMANCE REVIEW. The MWD Board of Directors recessed to closed session at 5:10 p.m. The Board reconvened to open session at 5:50 p.m. President Abel reported that the Board unanimously approved an increase in Manager Adjarian’s yearly salary from $107,625 to $110,000 effective July 1, 2001.	SECTION 12
AGENDA ITEM REQUESTS Requests from Directors for items other than regular agenda items for next regular Board meeting scheduled for June 19, 2001. There were no agenda requests from Directors at this time. ADJOURNMENT There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:55 p.m. Approved: __________________ Jan E. Abel, President Attest: _________________________ Frederick J. Adjarian, Secretary	SECTION 14