January 14, 2009

8:00 AM

Committee Members present: Alvin Edwards, Judi Lehman and David Pendergrass

Staff members present: Andy Bell, Rick Dickhaut, Sara Reyes and Cynthia Schmidlin

Call to Order

The meeting was called to order at 8:00 AM in the District Conference Room.

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 January 29, 2009

1. Consider Approval of Scope of Work and Expenditure of Funds for Hydrogeologic Studies Related to MPWMD 95-10 Desalination Project

Andy Bell, District Engineer, gave an oral overview of this item. Mr. Bell reported that staff presented a proposal by JSA and CDM for Phase 2 studies at the December 8, 2008 Board meeting. Rather than proceeding with the proposal, the Board directed staff to describe alternative approaches to investigation of the project, including proceeding with the hydrogeologic investigation but not the engineering portion of the project (outfall analysis, detailed project description, and cost estimates) until the hydrogeologic studies are completed. In December 2008, staff met with Martin Feeney, Consulting Hydrogeologist, to discuss tasks required to complete the hydrogeologic investigations. Mr. Bell reviewed the proposal submitted by Mr. Feeney with the Administrative Committee and noted that the proposed costs to complete the studies would be less than originally projected. Director Edwards requested staff to modify the staff report to be presented to the Board to show the previous cost quoted and the current costs so as to show the savings being presented. Director Lehman requested staff to contract with Ken Gray of the California Department of Parks and Recreation in Monterey, to discuss past experiences with the potential consultant. The committee voted 3 to 0 to recommend the Board approve this item with the understanding that funds for this project will be coming from the District’s line of credit previously established through Bank of America.

2. Consider Approval of First Quarter 2008-2009 Investment Report

Rick Dickhaut, Chief Financial Officer/Administrative Services Manager, presented the investment report for the first quarter of FY 2008-2009. The committee voted 3 to 0 to recommend the Board approve the First Quarter 2008-2009 Investment Report.

3. Consider Approval of Annual Update on Investment Policy

Rick Dickhaut reported that the State of California Government Code requires the District Board to annually consider the District Investment Policy and that changes have been made to the policy since it was adopted by the Board on September 20, 1997. The committee voted 3 to 0 that the Board approve the District’s Investment Policy.

4. Consider Adoption of Treasurer's Report for August 2008

Rick Dickhaut reviewed the Treasurer’s Report for August 2008. The committee voted 3 to 0 to recommend the Board adopt the August 2008 Treasurer’s Report.

5. Consider Adoption of Treasurer's Report for September 2008

Rick Dickhaut reviewed the Treasurer’s Report for September 2008. The committee voted 3 to 0 to recommend the Board adopt the September 2008 Treasurer’s Report.

6. Consider Adoption of Treasurer's Report for October 2008

Rick Dickhaut reviewed the Treasurer’s Report for October 2008. The committee voted 3 to 0 to recommend the Board adopt the October 2008 Treasurer’s Report.

7. Receive and File First Quarter Financial Activity Report for Fiscal Year 2008-2009

Mr. Dickhaut reviewed budgeted and actual year-to-date revenues and expenditures for the first quarter of Fiscal Year 2008-2009 which ended September 30, 2008. The committee voted 3 to 0 to recommend the Board receive and file the first quarter financial activity report.

Other Business

8. Discuss Amending Existing Rules Regarding Directors’ Attendance at Conferences

Rick Dickhaut reported that Director Lehman requested this item be discussed at the Administrative Committee level. She stated a possible need to develop or amend current rules to: 1) define the (annual) allocation of funds for Director’s attendance at conferences, and 2) if allocated funds are not spent by an individual Director, determine if the funds could be used the following year. After discussion, Director Edwards suggested this item be discussed by the full Board at the next strategy planning session or another future meeting prior to the budget workshop.

9. Discuss Rules Regarding Directors’ Participation in District Health Insurance Plans

Cynthia Schmidlin, Human Resources Analyst, reported on this item and answered questions from the committee. Director Lehman asked staff what rule or regulation would need to be developed in order to make a Health Insurance plan available for Directors. At the request of the committee, District staff will work on developing a Health Insurance Policy for Directors and will present this item for discussion at a future Rules & Regulations Review committee meeting. Additionally, the committee suggested this item be discussed by the full Board at the next strategy planning session or another future Board meeting.

10. Set February 2009 Committee Meeting Date

The committee suggested the February Administrative Committee meeting be conducted on Wednesday, February 18, 2009 at 8:00 AM.

11. Review Draft Agenda for January 29, 2009 Regular Board Meeting

No changes were made to the agenda.

Adjournment

The meeting was adjourned at 9:05 AM.

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