PUBLIC HEARING ON PROPOSED WATER DISTRIBUTION SYSTEM AND FIRE FLOW UPGRADE PROGRAM, PROPOSED FINANCING, AND ANY OBJECTIONS OR PROTESTS TO THE PROPOSED CHARGE AND REPORT; Public Testimony.

President Abel opened the public hearing at 2:25 p.m. Manager Adjarian reviewed the public noticing process, proposed water distribution system, fire flow upgrade program, and proposed financing.

District Counsel Wullbrandt reviewed the legal basis for the charge which was the California Water Code charge and was adopted by MWD prior to Proposition 218. Counsel Wullbrandt noted that the staff report for the proposed charge had been available to the public at the District’s office.

President Abel opened the hearing for written and verbal protests.

Mr. Adjarian reported that one letter dated June 13, 2001 had been received from Mr. Arthur W. Rogers, 204 Asegra Road in Summerland, stating that the proposed assessment should be based upon average annual water usage rather than on lot size.

President Abel closed the written protest period. Staff was directed to provide a written response to Mr. Rogers and explain the basis for the charge.

There being no public present for verbal protest comment, President Abel closed the verbal protest period and the public hearing at 2:30 p.m.

a motion was made by Director Puddicombe, seconded by Director Drewry, and unanimously carried to approve Resolution No. 1919 establishing Water Availability Charge for FY 2001/02 to finance the water distribution system and fire flow upgrade program and consideration of report establishing water availability charge for FY 2001/02.

The meeting was recessed at 2:35 p.m. to continue at the District office located at 583 San Ysidro Road.

Following items are to be approved or accepted by vote on one motion unless a Board member requests separate consideration:

1. Minutes of June 19, 2001 Board Meeting
2. Minutes of June 29, 2001 Special Board Meeting
3. Water Production Report for June 2001
4. Water Sales Reports for June 2001
5. Water Works Operation Report for June 2001
6. Investment of District Funds
7. Payment of Bills for June 2001
8. May 2001 Cash Flow with June Sales
9. Quarterly Accounts Receivable Write-Offs

President Abel requested that the June 19^th Board Meeting Minutes 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 June 19th Board Minutes as amended, and the Consent Calendar as presented.

Mr. Mosby directed the Board’s attention to the staff memorandum, and explained that this item had been reviewed by the Operations Committee on July 9, 2001, and recommended for Board approval.

A motion was made by Director Puddicombe, seconded by Director Bachman, and unanimously carried to accept the new grant of easement for the relocated 14-inch District transmission line, and to approve and execute a quitclaim of that portion of MWD’s Highline that was recently removed and abandoned from service.

Mr. Adjarian reported that this item had been reviewed by the Operations Committee on July 9, 2001, and recommended for Board approval.

A motion was made by Director Puddicombe, seconded by Director Drewry, and unanimously carried to accept USGS’s proposal for the continuation of the annual cooperative water resources program at Jameson Lake from November 1, 2001 to October 31, 2002, and to appropriate funding in the amount of $8,050 which is MWD’s share of one half of the total annual USGS cost for this program from the MWD Capital Repair and Replacement Fund.

3. PROPOSED EAST MOUNTAIN DRIVE WATER MAIN EXTENSION AT SAN YSIDRO ROAD.

Mr. Mosby explained that this item had been reviewed by the Operations Committee on July 9, 2001, and was recommended for Board approval.

A motion was made by Director Puddicombe, seconded by Director Bachman, and unanimously carried to approve the inclusion of the proposed East Mountain Drive Water Main Extension at San Ysidro Road into MWD’s pending San Ysidro Road Water Main Replacement Project subject to the following conditions:

1. All construction costs plus a fifteen percent (15%) contingency are to be paid to MWD by the applicant for the East Mountain Drive Water Main Extension prior to the award of bid for the MWD San Ysidro Road Water Main Replacement. The applicant’s costs shall be determined by the contractor’s bid schedule that is to be made a part of the MWD San Ysidro Road Water Main Replacement Project.
2. MWD to have District legal counsel prepare an agreement for execution by the applicant (and MWD) outlining the obligations and responsibility of each participant for this special water main extension project.
3. MWD to have District legal counsel prepare an authorization and

indemnification letter to be signed by the property owners of 1517, 1527,1555 East Mountain Drive, and 881 San Ysidro Lane. The letter is to grant permission for the relocation of their respective District water meters, confirming their relocation of the private service lines at no cost to the District, and private service lines to East Mountain Drive from San Ysidro Road.

4. All construction shall be in accordance with MWD approved plans and specifications, to be prepared for the applicant by Flowers and Associates, indicating all public and private water system construction improvements.

4. UPDATE ON RIVEN ROCK PARK MAIN EXTENSION PROJECT.

Manager Adjarian and Mr. Mosby provided the Board with updated information on the status of the Riven Rock Park Main Extension project. This information had been reviewed by the Operations Committee on July 9, 2001.

Mr. Adjarian presented the proposed policy. He stated that it had been reviewed and recommended for Board approval by the Operations Committee on June 18, 2001. He indicated that, based on his experience, it was appropriate for the Board to consider such a policy "up front", as the District expanded its electronic communications capabilities. The proposed policy had been reviewed with MWD’s labor lawyer.

Counsel Wullbrandt noted that he had also reviewed the policy, and observed that electronic mail found in the discovery phase of any litigation action could be a problem.

A motion was made by Director Bachman, seconded by Director Puddicombe, and unanimously carried to approve the proposed Computer, Word Processing, Electronic and Voice Mail, and Internet Confidential (Access and Disclosure) Policy.

1. RESOLUTION NO. 1920 IN SUPPORT OF ACWA REGION 5 POSITION.

A motion was made by Director Drewry, seconded by Director Wilson, and unanimously carried by the following roll call vote to approve Resolution No. 1920 in support of Jan Abel serving as a Vice Chair of ACWA Region 5.

1. State Water Resources Control Board Hearing Technical Issues Update.
2. Member Unit Legal Issues Update.
3. Report on Washington, D.C. Trip, June 19-22, 2001.

1. Salmon Funding Update.
2. USBR Transfer of USBR (formerly Summerland CWD) Facilities to MWD.

President Abel updated the Board on the subject meeting. Counsel Wullbrandt provided highlights from his recent Washington, D.C. trip concerning key people visited and the status of bills.

2. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF JUNE 25, 2001.

President Abel reported to the Board of Directors on the June 25, 2001 COMB Board meeting.

3. CENTRAL COAST WATER AUTHORITY BOARD MEETING OF JUNE 28, 2001.

Director Puddicombe updated the Board of Directors on the June 28, 2001 CCWA board meeting. Mrs. Kerman reported on the meeting that she attending concerning the cost accounting for replacement of filter media and the sale of water.

4. SANTA BARBARA COUNTY CHAPTER/CALIFORNIA SPECIAL DISTRICTS ASSOCIATION MEETING OF JUNE 25, 2001.

Director Wilson reported to the Board of Directors on the June 25, 2001 County Special Districts Association meeting. He discussed briefly the new LAFCO fees to be paid by Santa Barbara special districts effective in FY 2001/02. MWD’s portion will be $9,700.

1. Recent Newsletter.
2. Fish Management Plan News Article.
3. Joint Press Release Regarding Fire Hydrant Replacement Program.

President Abel discussed the above-listed public information items with the Board of Directors.

1. ORAL REPORT: PENDING ISSUES STATUS REPORT.

Mr. Adjarian briefly updated the Board on the Ortega Reservoir Cover Public Information meeting held on July 11, 2001 at Ortega. A number of homeowners attended the "field" meeting, along with representatives from CVWD, MWD, and various consultants. Mr. Adjarian indicated that the meeting provided residents with a good opportunity to learn about the status of the project, pending milestones, and projected timelines. Handouts from that meeting were distributed to the Board of Directors under separate cover.

District Counsel Chip Wullbrandt provided an update on pending legal matters of interest to the Board of Directors.

Requests from Directors for items other than regular agenda items for next regular Board meeting scheduled for August 21, 2001.

There were no agenda requests from Directors at this time.

• Mr. Adjarian announced that he would be on vacation from July 18^th through July 29^th, and return on July 30^th.
•  

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 4:55 p.m.

Approved:

__________________
Jan E. Abel, President

Attest:

_________________________
Frederick J. Adjarian, Secretary