REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA

TUESDAY, June 21, 2005

2:00 P.M.

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

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

Directors Present:

President Robert M. Edmonston

Directors Jan E. Abel, W.W. Drewry, Robert W. Puddicombe, and Larry Wilson

Directors Absent:

None

Staff Present:

Bob Roebuck, General Manager

Chip Wullbrandt, District Counsel, Price, Postel & Parma

Toni Bailey, Finance and Computer Specialist

Lois Werner, Recording Secretary

Guests Present

Robert Wignot, COMB

Richard Love, Montecito Association

Wayne MacAulay, Memphis, TN

2.  PUBLIC FORUM           

There were no members of the public present who wished to speak on matters not on the agenda.

3.  CONSENT CALENDAR

Following Board discussion, it was moved by Director Puddicombe, seconded by Director Drewry, and unanimously carried to approve the consent calendar as presented. 

4. Time Certain Item; 2:15 p.m.

A.                 Ratification of 2005-06 COMB Budget

Mr. Bob Wignot, COMB General Manager, briefly highlighted the COMB Budget and answered Directors’ questions.  It was the consensus of the Board that the COMB 2005/06 budget was acceptable as presented.

President Edmonston requested that the COMB Board revisit the matter of using Price, Postel & Parma as COMB legal counsel, now that the City representatives have changed.  Director Abel agreed to look into the matter.

5. LEGAL MATTERS                                                                                                                     

A.                 Recent and Pending Legal Matters REview

Mr. Wullbrandt briefly highlighted recent and pending legal matters.

B.                 Customer Classifications and Rates

Mr. Roebuck introduced this item and answered questions.  The Board discussed changing water rates effective January 1, 2006, and the requirements under Prop 218.  Following discussion, it was moved by Director Drewry, seconded by Director Puddicombe, and carried with one abstention to direct staff to move forward with the process for rate changes based on establishment of a single water rate for all classifications, to be effective on January 1, 2006, with the exception of phasing the implementation of agricultural and recreational classifications, according to the implementation schedule included in the agenda packet.

It was moved by Director Abel, seconded by Director Puddicombe, and carried by a vote of four to one move forward with the process to establish a five year phase-in period for the agricultural and recreational classifications.

It was moved by Director Abel, seconded by Director Drewry, and unanimously carried to adopt the implementation schedule presented in the staff memo on this item.

C                  Legal Expense Analysis

Director Drewry introduced this item and requested some ideas on cutting back on the portion of District legal expenses attributed to COMB and CCRB activities.  Following discussion, the item was continued to the July Board meeting.

Legal Counsel departed at this point

6.  district Operations Report

A.                 Ortega Reservoir Project Status Report and costs to date

Mr. Roebuck introduced this item and answered Directors’ questions.  Mr. Roebuck reported on the bids for Phase II, just submitted.  Two bids were submitted.  The low bidder was Cushman Construction with a bid of $6,220,000.  The local appeal period for the Coastal Development Permit has passed, the State appeal period expires on July 5.

B.                 South Coast Conduit Intertie Project Status REport

Mr. Roebuck introduced this item.  Following discussion, it was moved by Director Puddicombe, seconded by Director Abel, and carried by a vote of four to one, with Director Wilson voting against, to execute and approve the recording of the Notice of Completion for the project; direct the General Manager to invoice the Carpinteria Valley Water District for their 50% share of costs in the amount of $23,735.34; unemcumber $23,764.66 in MWD operating budget funds which were appropriated for the project and not used; and quitclaim all rights, interest, and ownership from MWD to the City of Santa Barbara and COMB.

C.                2005-06 Proposed Capital Improvement Program

Mr. Roebuck presented this item and answered Directors’ questions.

D.                2004/05 Joint Fire Hydrant Upgrade Project Summary

Mr. Roebuck reported on this item and answered Directors’ questions.

E.                 Winter 2004/05 Storm Damage REpair Status

Mr. Roebuck introduced this item and answered Directors’ questions.

F.                 Water Supply Optimization Plan

Mr. Roebuck introduced this item.  Following discussion it was moved by Director Puddicombe, seconded by Director Abel, and unanimously carried to accept the report as presented.  The Public Information Committee will work with Bob Rauch to publicize the report.

G.                CACHUMA Water Bank (Oral)

Mr. Roebuck reported on the status of discussions with Carpinteria Valley Water District on plans to form a Cachuma Water Bank.

H.                 Resolution NO. 2002 For Participation in the INTEGRATED Regional Water Management Grant Program

Mr. Roebuck introduced this item and answered Directors’ questions.  Following discussion, it was moved by Director Abel, seconded by Director Drewry, and carried by the following roll call vote to approve Resolution No. 2002 as presented:

Ayes: Abel, Drewry, Edmonston, Puddicombe, and Wilson

Noes:  None

Absent: None

7. Business

A.                 Reserve (Designated Unrestricted Net Assets) Status

Mr. Roebuck presented this informational item and answered Directors’ questions.

B.                 Draft 2005/06 Budget

Mr. Roebuck presented this item and he and Ms Bailey answered Directors’ questions.  Following discussion it was moved by Director Drewry, seconded by Director Wilson, and unanimously carried to adopt the 2005/06 budget as presented.

C.                Proposed 2005/06 Budget Resolutions

It was moved by Director Drewry, seconded by Director Puddicombe, and unanimously carried to approve Resolutions 1998 through 2001 by one vote.

Resolution No. 1998, Employee Classification and Salary Schedule

Ayes: Abel, Drewry, Edmonston, Puddicombe, and Wilson

Noes: None

Absent: None

Resolution No. 1999, Charges, Rates and Fees are not “Proceeds of Taxes under Article XIIIB

Ayes: Abel, Drewry, Edmonston, Puddicombe, and Wilson

Noes: None

Absent: None

Resolution No. 2000, Investment Policy for Fiscal Year 2005/06

Ayes: Abel, Drewry, Edmonston, Puddicombe, and Wilson

Noes: None

Absent: None

Resolution No. 2001, Setting Capital Cost Recovery Fees and Charges

Ayes: Abel, Drewry, Edmonston, Puddicombe, and Wilson

Noes: None

Absent: None

D.                “Internal Controls” conference (Oral Report)

Ms Bailey reported on a seminar on internal controls that she and Ms Kerman attended on May 25.

E.                 District Auditor Selection

Mr. Roebuck introduced this item and answered Directors’ questions.  Following discussion it was moved by Director Drewry, seconded by Director Wilson, and carried by a vote of four to one to authorize Poindexter & Company to perform annual audit and the Single Audit (when required) for the fiscal years ending June 30, 2005 through 2007 in accordance with the proposal included in the agenda packet.  Mr. Roebuck will obtain a proposal for an internal controls audit.

8.  GENERAL MANAGER’S REPORT                                                                                       

A.                 Ongoing Projects Update

Mr. Roebuck presented his ongoing projects update and answered Directors’ questions.

B.                 Semitropic request for support for Groundwater Storage Program Federal Matching Funds

Mr. Roebuck presented a request from SemiTropic for a letter of support and requested Board direction on this matter.  After discussion President Edmonston suggested that the General Manager refer the matter to Director Puddicombe to take to CCWA.
 

C.                July Calendar

Mr. Roebuck called the Board’s attention to the July calendar provided in their agenda packets showing Board and Committee meetings and the vacation schedules of staff.

9.  DIRECTOR AND STAFF MEETING REPORTS

A.                 CACHUMA CONSERVATION RELEASE BOARD MEETING OF May 23, 2005

1.                  State Water Resources Control Board Hearing Technical Issues Update

2.                  Legal Issues Report

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

B.                 CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF May 23, 2005

Director Abel reported on the subject meeting and called Directors’ attention to the COMB 2005-2006 Goals and Objectives provided in their agenda packets.

C.                Central Coast Water Authority Meeting of May 26, 2005

Director Puddicombe reported that the subject meeting was cancelled and he therefore had no report.

D.                SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF May 23, 2004

Director Wilson reported on the subject meeting where Mike Brown, SB County Administrator, was the speaker.

E.                 ACWA Board Meeting, May 26-27, SACRAMENTO

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

10.  COMMITTEE REPORTS/RECOMMENDATIONS                                                            

A.                 OPERATIONS COMMITTEE

Directors Puddicombe and Edmonston reported that all Operations Committee activities had been covered elsewhere in the meeting.

B.                 FINANCE COMMITTEE

Directors Wilson and Drewry reported that all Finance Committee activities had been covered elsewhere in the meeting.

C.                PUBLIC INFORMATION COMMITTEE

Directors Abel and Drewry reported on the activities of the Public Information Committee.  The Water Quality Report edition of the Newsletter has been completed and will be in customers’ mailboxes by the end of June.  The Committee has had Rauch Communications develop a “water saving tips” bill stuffer to use for the next four months.  Also discussed was public outreach for the rates changes.

11.  Board information Items

 

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

12.  AGENDA ITEM REQUESTS                                                                                                

Director Wilson requested that a report on age of pipes and line breaks record be added to the agenda for the next regular Board meeting scheduled for July 12, 2005.  Director Edmonston requested a report from Director Abel and Counsel Wullbrandt on issues related to the possible reorganization of COMB and CCRB.

13.  ADJOURNMENT

 There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:43 p.m.

                                                                                                Approved:

                                                                                                __________________________

                                                                                                Robert M. Edmonston, President

Attest:

__________________________________

Robert L. Roebuck, Secretary