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 27, 2003

CALL TO ORDER AND ROLL CALL

The meeting was called to order by President Abel at 9:00 a.m.
Those in attendance were:

No members of the public were present.

3.  Business & FINANCE                                                                                                        

A.                 Board Workshop: Draft MWD FY 2003-04 Budget

Mr. Adjarian, Ms. Kerman and Mr. Paley presented the draft FY 2003-04 Budget materials and answered Directors’ questions.

4.  Board of DIRECTORS                                                                                                  

1. Recess to Closed Session Pursuant to Government Code Section 54957 RE: Personnel Matters — General Manager’s Annual Performance Review

The Board recessed to closed session at 11:30 to discuss the above item.  Staff was excused from the meeting at that time.

Board reconvened from Closed Session at 1:00 pm.

President Abel announced that following the annual performance evaluation of General Manager Fred Adjarian, the Board voted 5-0 to terminate the employment of Mr. Adjarian pursuant to the terms of his September 13, 1999, employment agreement. The District President and General Counsel were authorized to take all actions necessary to effectuate the termination, including making the severance payment due pursuant to that employment agreement, and collecting all District property. Interim District operations would continue to be managed by District department managers, with Business Manager Evalyn Kerman continuing to serve as Acting Secretary, and with Ms. Kerman and Engineering Manager Tom Mosby sharing responsibilities as Acting General Manager.

5.  ADJOURNMENT

 There being no further business to come before the MWD Board of Directors, the meeting was adjourned at  1:10 p.m.

Approved:

________________________________
Jan E. Abel, President

Attest:

__________________________________
Evalyn Kerman, Acting Secretary