MINUTES OF A SPECIAL 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, AUGUST 15, 2000

CALL TO ORDER AND ROLL CALL, DETERMINATION OF QUORUM                            SECTION 1

The meeting was called to order by President Puddicombe at 2:05 p.m.
Those in attendance were:

There were no comments from the members of the public during public forum.

The following consent calendar items were considered by the MWD Board of Directors:

A. Minutes of July 18, 2000 meeting.
B. Water Production Report for July 2000.
C. Water Sales Reports for July 2000.
D. Water Works Operation Report for July 2000.
E. Investment of District Funds.
F. Payment of Bills for July 2000.

The Board discussed several consent calendar items. Engineering Manager Mosby reported that the Water Works Operations Report had been revised to facilitate Board member review. A motion was made by Director Wilson, seconded by Director Abel and unanimously carried to approve the consent agenda as presented.

A. BUELL PUMP STATION STATUS REPORT

Engineering Manager Tom Mosby reported that the Buell Pump Station had been placed into service in late July and that landscaping was being installed. He said that the Operations Committee would be visiting the site in the near future to view the project.

Engineering Manager Mosby said the Operations Committee had discussed this item at its meeting of August 7, 2000 and recommended an alternate less "invasive" method of repair than originally proposed. Mr. Mosby said that the revised scope of work had already begun and that Arch 13 had been drained and exploratory digging had begun. He noted that if the drainage system problem could not be corrected by the alternate method, then the original approach might likely be necessary.

C.  AWARD OF BID FOR ROMERO RESERVOIR PUMP STATION

Engineering Manager Tom Mosby reported that the Operations Committee had reviewed this item at its August 7, 2000 meeting and that the Operations Committee was recommending ratification of this item. Director Wilson expressed concern over the higher cost than previously discussed with the Board. Mr. Mosby reviewed those items resulting in the increased cost. Mr. Mosby stated that it would be less expensive to do the entire project now as opposed to over time. He noted that this would provide 100 percent redundancy to the District that it had not had before. Manager Adjarian briefly commented on a complaint by MWD customer Ms. Roxanne Brophy who lives near the Romero Reservoir Pump Station site. A motion was made by Director Abel, seconded by Director Wilson and unanimously carried to ratify the following:

1. Award a bid to Cushman Contracting Corporation for construction of the Romero Reservoir Pump Station in the amount of $231,300;
2. Appropriate additional funding for this project in the amount of $215,000, including a 10% contingency from the 1998A Bond Fund for this work. The 1999/00 budget presently includes $375,000 for this project which was carried over into the current budget year; and
3. Approve and appropriate the funding for a portable back-up generator that will serve the new Romero Reservoir Pump Station and other nearby existing pump stations for approximately $70,000.

D.  UPDATE / NEW POSITIONS FOR WATER TREATMENT / PRODUCTION AND WATER
      DISTRIBUTION DEPARTMENTS

Manager Adjarian noted that this item had been previously brought before the Finance Committee and the Board in June. The Board had previously approved these positions in the FY 2000/01 budget but deferred filling them until the Operation Committee had once again reviewed the need for additional staffing. Engineering Manager Mosby noted that due to lack of manpower in the past, certain areas of MWD’s distribution system had been neglected over time. A motion was made by Director Wilson, seconded by Director Abel and unanimously carried to approve the two new positions with the caveat that once two positions become vacant the Operations Committee would again review the need to fill those positions.

E. UPDATE METRON METER REPLACEMENT PROGRAM

Business Manager Kerman reported that the Metron 1 1/2-inch and larger meter replacement program was essentially completed. She said that Metron had asked MWD if they could install 10 – ¾-inch meters beside MWD’s current meters to evaluate differences in recording of water. The General Manager approved the request based on previous review and discussion with the Operations Committee. The District’s Sensus meters would continue to be read; a comparison of recordings could be made in order for future meter replacements. Mr. Danny Rodriguez, Distribution Superintendent, was asked to investigate the most effective way to install these meters.

F.  PROPOSAL BY ENTRIX TO PROVIDE COMMENTS ON USFWS PROPOSED RULE
     DESIGNATING CRITICAL HABIT FOR THE ARROYO TOAD

Manager Adjarian stated that this item had been inadvertently left off the last Board agenda. It was noted that Entrix had already completed the letter of comment on the USFWS proposed rule designating critical habitat for the Arroyo Toad. A motion was made by Director Wilson, seconded by Director Abel and unanimously carried to ratify the comments by Entrix on the USFWS proposed rule designating critical habitat for the arroyo toad for a not-to-exceed cost of $3,500.

G.  PROPOSAL BY MC GUIRE ENVIRONMENTAL CONSULTANTS, INC. TO EVALUATE
      WATER QUALITY ISSUES AT ORTEGA RESERVOIR

Manager Adjarian said that Ortega Reservoir had tested positive twice in the last few months. He noted that several meetings had been held with DOHS, COMB and CVWD to discuss this issue. It was proposed that a water quality consultant be hired to evaluate water quality issues at Ortega Reservoir. Mr. Adjarian pointed out that Dr. McGuire has been working with the City of Santa Barbara’s Cater Plant staff on a variety of water quality issues. It was noted that the cost of this item would be split with CVWD. A motion was made by Director Wilson, seconded by Director Abel and unanimously carried to ratify the Operation Committee’s approval of the proposal as presented by Dr. Michael McGuire for a not-to-exceed figure of $3,075 (MWD’s cost share).

Director Abel said that the Operations Committee had reviewed this item at its meeting of July 31, 2000. It was noted that MWD did not currently have vision care benefits and that all of the local water districts carried this benefit. A motion was made by Director Abel, seconded by Director Wilson and unanimously carried to approve a change in the long-term disability insurance carrier from Standard Insurance to METlife, and to add Vision Care as a new benefit for employees and Directors, and make this available to employees’ and Directors’ families (and retirees) for an additional cost.

Manager Adjarian explained that at the outset of the capital improvement program, it was recommended by former General Manager Charles Evans that a part-time engineering person be hired to update the District’s engineering records and to perform project inspections. In 1999, the District had hired Mr. Norm Cota as a consultant on a part-time basis. It was estimated that he would be needed for the next several years during the capital improvement program. Mr. Cota was very close to exceeding the number of annual hours that he could work (960 hours), and that this could affect his retired status and ability to receive full retirement pay. Manager Adjarian said that given engineering’s heavy project workload an outside consultant would likely need to be hired if Mr. Cota could not continue to work for the District. A motion was made by Director Abel, seconded by Director Wilson and carried with the following roll call vote to approve Resolution No. 1903 requesting CalPERS to waive the 960 hour rule:

AYES: Directors Abel, Puddicombe, Wilson
NOES: None
ABSENT: Directors Bachman, Drewry
ABSTAIN: None

Director Wilson reported that there were presently six vacancies on the Montecito Association Board. He stated that Director Rick Drewry had decided not to serve. Director Wilson said that 19 applications had been received for the Executive Director position and that it had been narrowed down to about three applicants. He said interviews would be held next week, and that the Search Committee had been authorized to select an Executive Director.

B CENTRAL COAST WATER AUTHORITY MEETING OF JULY

Manager Adjarian summarized travel details for the CCWA Polonio Pass Water Treatment Plant tour the Board would be taking the following day. President Puddicombe said that CCWA had not held a meeting; there was nothing new to report.

C. CACHUMA CONSERVATION RELEASE BOARD MEETING OF JULY

Director Abel reported that the July CCRB meeting was the annual reorganization meeting, and that she had been reelected President. She also reported on the highlights of the Member Unit Technical Issues and Member Unit Legal Issues reports.

Director Abel said that the July CCRB meeting was the annual reorganization of COMB and that City of Santa Barbara representative Marti Blum was elected as Chair, and that Director Abel was elected as Vice-Chair. Director Abel also reported on other agenda items discussed at that meeting.

E.  CALIFORNIA SPECIAL DISTRICTS ASSOCIATION MEETING OF JULY

Director Wilson briefly reported on the California Special District Association meeting of July.

President Puddicombe noted that the Operations Committee had met several times since the last Board meeting. Staff was directed to contact Director Bachman regarding his attendance of Operations Committee meetings since Director Abel had acted as committee alternate the last several times.

Director Wilson stated that the Finance Committee had not met.

Director Abel reported that the Public Information Committee had met and discussed ideas for the next newsletter. She said that the next newsletter will include an update about MWD’s capital improvement program with a list of upcoming projects, MWD’s Metron meter replacement program, an article on salmon funding, and a small article possibly about former Director Bob Jones. Director Abel noted that the next Public Information Committee would be held on September 11, 2000.

Director Abel reported that there were remaining funds in the budget for public information since MWD had not produced as many newsletters. The Committee had decided to use these funds to produce a fact sheet for MWD for placement at the District counter and use at community presentations. This fact sheet will cover basic data about MWD.

The Committee had also discussed in detail the request of the Montecito Association’s Communications Committee to place a bench dedicated to Chief McElwee in MWD’s conservation garden. The Public Information Committee was informed that the Fire District wanted the bench in front of their building. Since the letter of request was addressed to President Puddicombe, staff was requested to draft a letter of response and have President Puddicombe review it.

Manager Adjarian stated that MWD had received an unexpected compliment from the Santa Barbara County Road Dept., regarding MWD’s information packet sent to residents to inform them of the Toro Canyon Pipeline Replacement Project. The County requested if they could use this information packet as a model for other agencies use countywide on how the County would like the public informed about similar Capital Improvement Project programs.

GENERAL MANAGER’S REPORT

The General Manager had nothing new to report.

A.  DISTRICT COUNSEL REPORT

Counsel Wullbrandt stated that he had nothing new to report at this time.

The Board recessed to closed session at 5:04 p.m. The Board reconvened to open session at 5:17 p.m. President Puddicombe announced that the Board had agreed to accept a settlement regarding pending litigation (MWD vs. UPRR, Santa Barbara Superior Case No. 01 001 654) for a total amount of $7,500 as described in the letter from District Counsel dated September 13, 2000.

AGENDA ITEM REQUESTS

There were no additional requests for items to be placed on the September 2000 agenda by Directors.

ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:22 p.m.

Approved:

_______________________________
Robert W. Puddicombe, President

Attest:

_________________________________
Frederick J. Adjarian, Secretary