February 15, 2006 8:30 AM

Call to Order

The meeting was called to order at 8:33 AM in the District Conference Room.

Committee members present: Alvin Edwards Staff members present: David Berger

Michelle Knight Rick Dickhaut

Judi Lehman Andy Bell

Rob Cline

Sara Reyes

Oral Communications Anyone wishing to address the committee on a matter not listed on the agenda may do so during oral communications. Public comment on any other matter listed on the agenda is appropriate at the time the item is being discussed by the committee.

No public comment was received.

Items on Board Agenda for February 2006

1. Review and Accept Independent Audit Report for Fiscal Year 2004-2005

Rick Dickhaut, Chief Financial Officer/Administrative Services Manager introduced Cecil Robbins and Rae Gularte from the Hayashi & Wayland Accounting Firm. Mr. Robbins and Ms. Gularte reviewed the draft Financial Statements, and Independent Auditors’ Report, draft Board Disclosure Letter and draft Management Letter with the committee. After discussion and questions among the group, the committee voted 3 to 0 to accept the Financial Statements and Independent Auditors’ Report for the year ended June 30, 2005.

2. Consider Approval of Second Quarter Fiscal Year 2005-06 Investment Report

Rick Dickhaut reported on this item and answered questions from the committee. The committee voted 3 to 0 to recommend approval.

3. Consider Adopting Memorandum of Understanding between the MPWMD and the California Urban Water Conservation Council

Rob Cline, Conservation Representative reported on this item and answered question from the committee. The committee voted 3 to 0 to recommend the Board adopt the Memorandum of Understanding.

4. Consider Amendment to General Manager Employment Agreement

District Counsel David Laredo presented an overview of this item. The committee voted 3 to 0 to recommend adoption of the amendment to General Manager Berger’s employment agreement.

5. Consider Expenditure of Budgeted Funds for 2005 MPWMD Annual Report

Rick Dickhaut presented this item to the committee. After brief discussion the committee voted 3 to 0 to authorize production and distribution of the 2005 Annual Report for an amount not-to-exceed $13,500.

6. Consider Supplemental Appropriation and Authorization to Contract with Bookman-Edmonston/GEI Consultants to Prepare Comparison of Desalination Project Costs and Timelines

Andy Bell, District Engineer reviewed this item with the committee. After discussion the committee voted 3 to 0 to defer this item to the full Board at its regular Board meeting scheduled for February 23, 2006. No recommendation was made by the committee.

7. Consider Rejection of Sole Bid and Authorization for Staff to Negotiate with Bidder for Design and Installation of Audio and Video Equipment in the District’s Conference Room

Rick Dickhaut reported on this item. After discussion the committee voted 3 to 0 to recommend that the Board reject the bid from Active Matrix Networks, Inc., authorize staff to negotiate a reduced amount with the sole bidder and authorize an expenditure of up to $50,000 for the conference room upgrade.

8. Consider Adoption of Treasurer’s Report for December 2005

Rick Dickhaut reviewed the December 2005 Treasurer’s Report and financial statements. After discussion, the committee voted 3 to 0 to adopt the December 2005 Treasurer’s Report and financial statements, and ratification of the disbursements made during the month.

9. Semi-Annual Financial Report on the CAWD/PBCSD Wastewater Reclamation Project

This item was presented to the committee as an informational item. No action by the committee was needed.

Other Business

10. Special Administrative Committee Meeting

General Manager David Berger reported that a public hearing item scheduled for the February 23, 2006 Board meeting – Consider Approval of Aquifer Storage and Recovery Management and Operations Agreement between MPWMD and California American Water was inadvertently not included on the February 15, 2006 Administrative Committee meeting agenda. Due to the nature of the item, it was suggested that a special Administrative Committee meeting be held prior to the regularly scheduled Board meeting in order for the committee to make a recommendation to the Board. After some discussion, the Administrative Committee unanimously agreed to hold a special committee meeting on Wednesday, February 22, 2006 at 5:30 PM in the District Conference Room. Staff will prepare and distribute a meeting agenda and staff report for this item.

11. Review Draft February 23, 2006 Board Meeting Agenda

General Manager Berger reported that since the production of the Administrative Committee meeting packet, the agenda for the February 23, 2006 meeting has been revised to reflect a new item; Action Item – Designation of MPWMD Representative to Seaside Groundwater Basin Watermaster; Authorization to Submit MPWMD Proposal for Technical, Administrative and Financial Management Support Services to Watermaster. Director Knight recommended the new Action Item be placed as the second action item on the agenda and that Action Item 18 – Consider Rejection of Sole Bid and Authorization for Staff to Negotiate with Bidder for Design and Installation of Audio and Video Equipment in the District’s Conference Room, be moved to the last item on the agenda

12. Discuss Scheduling Remainder of 2006 Meetings

Rick Dickhaut distributed a list of proposed Administrative Committee meeting schedule for 2006. The list of proposed meeting dates was approved with one change. The list will be included in the monthly Administrative Committee meeting packet as a reference to committee members and revised as necessary throughout the year. Chairman Edwards recommended that if a committee person is not available for a scheduled Administrative Committee meeting that the alternate, Director Potter be contacted to attend. If the alternate is not available, the committee should proceed with two committee members present.

Adjournment

The meeting was adjourned at 10:12 AM.

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