February 17, 2009

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

District Counsel present: David Laredo

Staff members present: Rick Dickhaut, Darby Fuerst, Joe Oliver and Sara Reyes

Call to Order

The meeting was called to order at 8:03 AM in the District Conference Room.

Oral Communications

No public comment was received.

Items on Board Agenda for February 26, 2009

1. Review and Accept Independent Audit Report for Fiscal Year 2007-2008

Mike Briley and Rae Gularte from Hayashi & Wayland reviewed the drafts of the Financial Statements and Independent Auditors’ Report and the Board Disclosure Letter for the Fiscal Year ending June 30, 2008. These documents were distributed to the Board under separate cover prior to the February 17, 2009 meeting. The auditors reported that a clean opinion on the financial statements has been presented to the District.

The Auditors and staff expressed concerns with the delay in receiving the Reclamation audit over the last two years since it delays completion of the District’s audit. Director Pendergrass suggested that General Manager Fuerst contact CAWD’s General Manager to relay the Board’s concerns and that the District also sends a letter outlining those concerns. Additionally, staff will work towards completing the work necessary for Hayashi & Wayland to complete the audit earlier in the year, i.e., October or November. Director Edwards asked staff to modify the staff report to describe the concerns of the committee and the actions the District plans to take with CAWD to address the issues. The committee voted 3 to 0 to recommend the Board review and accept the Financial Statements and Independent Auditors’ Report for the year ending June 30, 2008.

2. Consider Expenditure of Budgeted Funds to Contract with Idias Consulting to Provide Assistance with Projects Related to the Seaside Basin Watermaster and the Water Allocation Program Mitigation Plan

Joe Oliver, Water Resources Manager, reported on this item and answered questions from the committee. After some discussion, the committee voted 3 to 0 to recommend the Board authorize the General Manager to execute a contract with IDIAS Consulting for a not-to-exceed amount of $20,000 for technical assistance within the Water Resources Division until June 30, 2009.

3. Consider Expenditure of Budgeted Funds to Purchase License for Utilization of Water Wise Gardening in Monterey County Software

Darby Fuerst, General Manager and Stephanie Pintar, Water Demand Manager, reported on this item and answered questions from the committee. Director Edwards suggested staff modify the staff report to include the proposed launch date for having the material online. After discussion, the committee voted 3 to 0 to recommend the Board approve this expenditure.

4. Consider Approval of Second Quarter Fiscal Year 2008-2009 Investment Report

Rick Dickhaut, Chief Financial Officer/Administrative Services Manger reported on this item. The committee voted 3 to 0 to recommend the Board approve the second quarter Fiscal Year Investment Report.

5. Consider Approval of Treasurer's Report for November 2008

Mr. Dickhaut reported on this item and answered questions from the committee. After some discussion, the committee voted 3 to 0 to recommend the Board approve the November 2008 Treasurer’s Report.

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

Mr. Dickhaut reported on this item and answered questions from the committee. After some discussion, the committee voted 3 to 0 to recommend the Board approve the December 2008 Treasurer’s Report.

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

Mr. Dickhaut reported on this item and answered questions from the committee. The committee voted 3 to 0 to recommend the Board receive the semi-annual financial report on the CAWD/PBCSD Wastewater Reclamation Project.

Other Business

8. Set March-December 2009 Administrative Committee Meeting Dates

Mr. Dickhaut presented a draft schedule for the 2009 committee meeting dates. The committee was asked to review the schedule and to notify staff of any conflicts.

9. Review Draft Agenda for February 26, 2009 Regular Board Meeting

General Manager Fuerst reported that an incorrect version of the draft February 26, 2009 Board meeting agenda had been included in the Administrative Committee packet. Staff posted a note on the District’s website under the February 17, 2009 Administrative Committee meeting agenda noting the error and directing viewers to a corrected agenda. The committee made no changes to the agenda.

Adjournment

The meeting was adjourned at 9:12 AM.

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