Director Wilson requested that the Minutes of the May 22, 2001 Board Meeting be removed from the Consent Calendar for discussion and revision.

President Abel reminded the Board that this item had been reviewed at the Board Workshop on June 5, 2001. Business Manager Kerman responded to questions from Directors.

A motion was made by Director Wilson, seconded by Director Puddicombe,

and unanimously carried to approve the Final FY 2001/02 MWD Budget as presented.

1. RESOLUTIONS RELATIVE TO PROPOSED FY 2001/02 BUDGET:

1.  RESOLUTION NO. 1914: MWD EMPLOYEE CLASSIFICATION AND SALARY RANGE SCHEDULE.

2.  RESOLUTION NO. 1915: LEVYING OF TAXES FOR FY2001/02.

3.  RESOLUTION NO. 1916: CHARGES, RATES AND FEES ARE NOT "PROCEEDS OF TAXES UNDER ARTICLE XIIIB".

4.  RESOLUTION NO. 1917: INVESTMENT POLICY FOR FY2001/02.

5.  RESOLUTION NO. 1918: WATER SERVICE RELATED RATES.

These items had been previously recommended for Board approval by the Finance Committee.

Mrs. Kerman provided information and responded to questions from Directors.

A motion was made by Director Wilson, seconded by Director Puddicombe, and unanimously carried by the following roll call vote to approve Resolution No. 1913, Proposed Memorandum of Understanding Between the Montecito Water District and the Montecito Fire Protection District Regarding Replacement of Fire Hydrants, as presented.

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

Mr. Adjarian acknowledged Engineering Assistant Laura Menahen and Engineering Manager Tom Mosby for their exemplary background work on this Memorandum of Understanding. He added that this joint project is an outstanding example of the commitment to provide exemplary service for the benefit of the community served by both the Fire and Water Districts.

The Board of Directors concurred with staff’s recommendation that some consideration be given to a focused public relations effort to inform the public of this significant public service milestone.

1. RECESS TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (c); CLOSED SESSION/PENDING LITIGATION: REGARDING NANCY CRAWFORD-HALL V. CACHUMA OPERATIONS MAINTENANCE BOARD, SANTA BARBARA SUPERIOR COURT, CASE NO. 01045423.

The MWD Board of Directors recessed to closed session at 2:35 p.m. The Board reconvened to open session at 3:00 p.m. Manager Adjarian reported that Counsel Wullbrandt updated the Board on the above captioned matter.

A motion was made by Director Puddicombe, seconded by Director Wilson, and unanimously carried to approve the filing of the Notice of Completion for the Romero Reservoir Pump Station.

Mr. Mosby responded to questions from the Board of Directors regarding R.W. Beck’s proposal and the timeline for completing the study. This item had been previously recommended for Board approval by the Operations Committee.

Mr. Adjarian provided information to the Board of Directors concerning the proposed changes to MWD’s Overtime and Standby Policy. This item had been previously recommended for Board approval by the Operations Committee.

4. ORAL REPORT: RIVEN ROCK WATER MAIN EXTENSION/PHASE 1 UPDATE.

Mr. Mosby briefed the Board of Directors on the status of Riven Rock Water Main Water Extension/Phase 1 work.

Director Puddicombe complimented MWD’s Engineering staff and the Montecito Fire Protection District’s staff on this cooperative effort after nearly twenty years of planning and discussions with Riven Rock Mutual Water Company.

5. ORAL REPORT: UPDATE ON ORTEGA CHLORINATION STATION PROJECT.

Mr. Mosby updated the Board of Directors on the Ortega Chlorination Station Project. He stated that progress in the form of a written letter was sent to Carpinteria Valley Water District.

1. CACHUMA CONSERVATION RELEASE MAY 2001 BOARD MEETING MATERIALS.

1. State Water Resources Control Board Hearing Technical Issues Update.

2. Member Unit Legal Issues Update.

President Abel reported that she had nothing additional to report.

2. CENTRAL COAST WATER AUTHORITY BOARD MEETING OF MAY 18, 2001.

Director Puddicombe reported on the May 18, 2001 CCWA Board Meeting.

3. SANTA BARBARA CHAPTER/CALIFORNIA SPECIAL DISTRICTS ASSOCIATION MEETING OF MAY, 2001.

Director Wilson reported on the May 1, 2001 Santa Barbara Chapter/California Special Districts Association Meeting.

4. ACWA BOARD OF DIRECTORS MEETING OF JUNE 1, 2001 AT SACRAMENTO.

President Abel reported on the issues discussed at the June 1, 2001 ACWA Board of Directors meeting that was held in Sacramento.

Director Puddicombe stated that he had nothing additional to report.

Director Wilson reported on the last Finance Committee meeting presentation of the MWD Focused Assessment Plan.

Mr. Adjarian reminded the Finance Committee that their next meeting was scheduled for July 10th at 2:00 p.m.

3. PUBLIC INFORMATION COMMITTEE

1. Ratification of Inclusion of the Montecito Association Beautification Awards Insert in June Billing.

2. Newsletter.

President Abel reported that the next MWD newsletter in July will feature the annual water quality report required by DOHS.

Mr. Adjarian reminded the Board that a special board meeting workshop was scheduled for June 29, 2001 from 9:00 a.m. to 1:00 p.m. to hear a presentation from R.W. Beck regarding MWD’s Focused Assessment Plan.

2. PENDING ISSUES STATUS REPORT.

Manager Adjarian briefly updated the Board on the following issues:

• Miramar Beach Main Extension Project Update.
• Goals and Objectives for FY 2001-2004.

1. Requests from Directors for items other than regular agenda items for next regular Board meeting scheduled for July 17, 2001.

Approved:

__________________
Jan E. Abel, President

Attest: