SPECIAL MEETING OF THE

CACHUMA CONSERVATION RELEASE BOARD

MEETING AGENDA

Montecito Water District Board Room 583 San Ysidro Rd.

Montecito, CA 93108 City of Santa Barbara Goleta Water District

Montecito Water District

October 18, 2017 10 a.m.

Roll Call

Public Comment Period

Any member of the public may address the Board of Directors (Board) on any subject within the jurisdiction of the Board that is not scheduled for a public hearing before the Board. The President of the Board will determine the total time for public comments. If you wish to address the Board, please complete and deliver to the Secretary of the Board, before the meeting is convened, a “Request to Speak” form including a description of the subject you wish to address.

Consent Agenda All matters listed hereunder constitute a consent agenda, and will be acted upon by a single roll call vote of the Board. CA-1) MEETING MINUTES

Approval of minutes of the Board of Directors September 21, 2017 meeting. CA-2) UNAUDITED INTERIM FINANCIAL STATEMENT – PERIOD ENDING

AUGUST 31, 2017 Receive and file the Unaudited Interim Financial Statement—Period Ending August 31, 2017.

Closed Session Agenda

CS-1) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Government Code section 54956.9(d) (4) (One potential case)]

CS-2) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [Government Code section 54956.9(d) (1) (One case: State Water Resources Control Board adjudicatory proceeding regarding Cachuma Project water rights)]

Reconvene into open session and report on actions taken in closed session pursuant to Government Code Section 54957.1

Departmental Agenda

1) FISCAL YEAR 2015-2016 AND FISCAL YEAR 2016-2017 RECONCILIATION

Receive a report on member agency assessments for Fiscal Year (FY) 2015-16 and FY 2016-17, and consider directing a constructive return of remaining unexpended funds.

2) UPDATE ON FUTURE HYDROLOGIC AND BIOLOGIC WORK EFFORTS IN FISCAL YEAR 2017-2018 Receive an update on future hydrologic and biologic work efforts necessary in Fiscal Year 2017-2018.

3) ADMINISTRATIVE FUNCTIONS UPDATE

Receive an update from board president Hanson concerning the organization’s administrative functions.

Adjourn to November 16, 2017 at 10:00 a.m.

NOTICE TO PUBLIC

Americans with Disabilities Act: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Cachuma Conservation Release Board

representative at (805) 879-4627 at least 48 hours prior to the meeting to enable the Board to make reasonable arrangements.

[This Agenda was posted at the Montecito Water District, 583 San Ysidro Rd., Montecito CA 93108

And Delivered in Accordance with Section 54954.1 and .2 of the Government Code.]

MINUTES OF A SPECIAL MEETING

of the

CACHUMA CONSERVATION RELEASE BOARD

held at the

Goleta Water District

4699 Hollister Avenue

Goleta, CA 93110

Thursday, September 21, 2017, 1:00 PM

________________________________________________________________

Call to Order, Roll Call

The meeting was called to order at 1 p.m. by board president Lauren Hanson, who chaired the meeting. Those in attendance were:

Directors Present:

Lauren Hanson Goleta Water District Doug Morgan Montecito Water District Bendy White City of Santa Barbara

Also Present: John McInnes Ryan Drake Kelley Dyer Joshua Haggmark

Present by Phone: Kevin O’Brien Sam Bivins Jean Baldrige Nick Turner Ted Harris Enrique Lopezcalva

Public Comment There was no public comment.

Consent Agenda On a motion by Director Morgan, seconded by Director White, the Board voted to

approve the minutes of the August 24, 2017 and August 29, 2017 meetings, as well as to receive and file the unaudited interim financial reports for June and July 2017, as presented. VOTE: 3/0/0.

Closed Session Agenda

The Board went into closed session at 1:02 p.m. The Board discussed two matters: one regarding potential litigation [Government Code section 54956.9(d) (4); and one regarding existing litigation [Government Code section 54956.9 (d) (1) The Board came out of closed session at approximately 1:44 p.m. There was no reportable action.

Departmental Agenda 1. Hydrologic Modeling Services

On a motion by Director Morgan, seconded by Director White, the Board voted to adopt a Resolution authorizing and directing General Counsel to execute a sole-source professional services agreement with Woodard & Curran for hydrologic modeling services. VOTE: 3/0/0.

2. Fisheries Consulting Services On a motion by Director Morgan, seconded by Director White, the Board voted to adopt a Resolution authorizing and directing General Counsel to execute a sole-source professional services agreement with ICF for fisheries consulting services. VOTE: 3/0/0.

3. Permanent General Manager Recruitment The Board of Directors received a presentation from Cindy Krebs of Alliance Resource Consulting LLC, regarding the executive search for a permanent General Manager. The Board reviewed and discussed the job description, timing of recruitment, and potential salary. The Board also discussed potential types of candidates. The Board will receive updates from Alliance Resource Consulting LLC on a weekly basis, with the initial application period closing by the end of October.

After further discussion and input from Mr. McInnes and Mr. Haggmark on the scope of the job, on a motion by Director White, seconded by Director Morgan, the Board approved a job description and related compensation range to guide Alliance Resource Consulting LLC in preparation of materials to be used to recruit and identify a prospective candidate pool. The Board directed staff to revise a portion of the job description to reflect comments made by Ms. Dyer. VOTE: 3/0/0.

4. Administrative Functions Update The Board of Directors received an update from board president Hanson concerning the organization’s administrative functions. The Board discussed various notifications to outside consultants and vendors during the search for a new chief executive of the agency. Director Hanson noted that CCRB will alternate meeting locations among the member agencies, and that consultants would be kept fully apprised of the ongoing administrative functions of the agency. She also thanked the executive staffs of the member agencies for their collaborative efforts during the transition period. Director White asked about the possibility of a constructive return at end of year. The Board directed President Hanson to provide the CCRB bookkeeper direction to provide a full reconciliation of assessments paid and unpaid in order to guide the Board on a decision regarding a constructive return of unspent prior assessments. CCRB member agency staff was directed to prepare estimates of what future work may be necessary that may require the expenditure of funds beyond what was budgeted for Fiscal Year 2017-18.

CCRB adjournment The meeting was adjourned at approximately 2:35 p.m., with the next scheduled meeting set for October 18, 2017, at 10 a.m. at the Montecito Water District.

Respectfully submitted, ____________________________ President of the Board of Directors

City of Santa Barbara Goleta Water District Montecito Water District

Cachuma Conservation Release Board Agenda Letter

Board of Directors

For Agenda Of: October 18, 2017 Estimated Time : -- Continued Item: No If Yes, date from:

TO: Board Members FROM:

Lauren Hanson, board president

SUBJECT: Unaudited Interim Financial Statement—Period Ending August 31, 2017

Legal Concurrence:

As to form: N/A Recommended Actions: Receive and file the Unaudited Interim Financial Statement – Period ending August 31, 2017. Discussion: The Board of Directors approves the Cachuma Conservation Release Board (CCRB) Budget each fiscal year, which is subsequently ratified by each member agency’s governing body. On a monthly basis, unaudited interim financial results are provided to the Board of Directors, which compare fiscal performance to the Budget. This report contains pertinent financial information for the period ending August 31, 2017. Fiscal Analysis: Total income through August 31, 2017 was $198,404.56, mainly from Fiscal Year 2017-18 assessments paid by Goleta Water District, City of Santa Barbara and Montecito Water District. Total expenditures through the end of the period were $129,000, mainly for consultant work authorized by the Board and billed through CCRB General Counsel. Attachments:

Attachment 1: Unaudited Interim Financial Statement for the period ending August 31, 2017 Authored by: Ryan Drake, Water Supply and Conservation Manager, Goleta Water District

 

 

 

 

 

Attachment 1: Unaudited Interim Financial 

Statement—Period Ending August 31, 2017 

Jul - Aug 17 Budget $ Over Budget % of Budget

Ordinary Income/ExpenseIncome

4200 · Income 197,960.00 791,841.00 -593,881.00 25.0%4250 · Income - Other 438.294300 · Interest Income 6.27

Total Income 198,404.56 791,841.00 -593,436.44 25.1%

Expense5050 · Office Lease 783.00 9,000.00 -8,217.00 8.7%5100 · Audit 0.00 8,000.00 -8,000.00 0.0%5200 · Liability Insurance 3,580.85 4,200.00 -619.15 85.3%5301 · Managers Salary 12,500.00 162,000.00 -149,500.00 7.7%5304 · Administrative Support 796.80 7,800.00 -7,003.20 10.2%5312 · Misc Admin Expense 505.70 4,000.00 -3,494.30 12.6%5313 · Communications/Computer 350.22 6,000.00 -5,649.78 5.8%5316 · Admin Fixed Assets 0.00 4,000.00 -4,000.00 0.0%5330 · Admin Travel Expense 0.00 8,000.00 -8,000.00 0.0%5331 · Travel Federal & State Meetings 0.00 20,000.00 -20,000.00 0.0%5332 · Transportation 0.00 1,000.00 -1,000.00 0.0%6001 · BO Reconsultation Activities 0.00 53,052.00 -53,052.00 0.0%6500 · Contingency 0.00 40,000.00 -40,000.00 0.0%7000 · Legal 6,647.93 10,000.00 -3,352.07 66.5%7001 · BO Reconsultation Legal Support 0.00 60,000.00 -60,000.00 0.0%7002 · SWRCB Water Rights 0.00 100,000.00 -100,000.00 0.0%7100 · SWRCB Support

7200 · SWRCB Proceedings Support 0.00 39,789.00 -39,789.00 0.0%

Total 7100 · SWRCB Support 0.00 39,789.00 -39,789.00 0.0%

7400 · Legislative/Regulatory Analyst 20,000.00 175,000.00 -155,000.00 11.4%7500 · Hydrologic Technical Support 0.00 80,000.00 -80,000.00 0.0%

Total Expense 45,164.50 791,841.00 -746,676.50 5.7%

Net Ordinary Income 153,240.06 0.00 153,240.06 100.0%

Net Income 153,240.06 0.00 153,240.06 100.0%

Cachuma Conservation Release Board, Unaudited Interim Financial Statement10/12/17 Statement of Revenue and Expense- Budget vs. ActualAccrual Basis July through August 2017

Page 1

Type Date Num Name Clr Amount Balance

Beginning Balance 385,339.05Cleared Transactions

Checks and Payments - 17 itemsBill Pmt -Check 07/25/2017 3004 Downey Brand Attor... X -82,702.71 -82,702.71Bill Pmt -Check 07/25/2017 3001 California Strategies... X -10,000.00 -92,702.71Bill Pmt -Check 07/25/2017 3000 AccountabilityPlus, Inc X -763.30 -93,466.01Bill Pmt -Check 07/25/2017 3005 Rauch Communicati... X -569.88 -94,035.89Bill Pmt -Check 07/25/2017 3003 Dale Francisco X -119.88 -94,155.77Bill Pmt -Check 07/25/2017 3002 CIO Solutions, LP X -21.00 -94,176.77Bill Pmt -Check 07/25/2017 3006 Premier Global (PGI) X -20.01 -94,196.78Bill Pmt -Check 08/08/2017 3008 California Strategies... X -10,000.00 -104,196.78Bill Pmt -Check 08/08/2017 3010 Dale Francisco X -7,633.50 -111,830.28Bill Pmt -Check 08/08/2017 3007 AccountabilityPlus, Inc X -796.80 -112,627.08Bill Pmt -Check 08/08/2017 3011 Patterson/101 Allstore X -522.00 -113,149.08Bill Pmt -Check 08/08/2017 3009 CIO Solutions, LP X -195.00 -113,344.08Bill Pmt -Check 08/08/2017 3012 Premier Global (PGI) X -25.81 -113,369.89Bill Pmt -Check 08/23/2017 3014 Downey Brand Attor... X -6,647.93 -120,017.82Bill Pmt -Check 08/23/2017 3013 Dale Francisco X -5,063.99 -125,081.81Bill Pmt -Check 08/23/2017 3015 SDRMA X -3,580.85 -128,662.66Check 08/31/2017 X -338.19 -129,000.85

Total Checks and Payments -129,000.85 -129,000.85

Deposits and Credits - 3 itemsPayment 08/07/2017 670211 City of Santa Barbara X 80,926.00 80,926.00Deposit 08/29/2017 X 438.29 81,364.29Deposit 08/31/2017 X 3.11 81,367.40

Total Deposits and Credits 81,367.40 81,367.40

Total Cleared Transactions -47,633.45 -47,633.45

Cleared Balance -47,633.45 337,705.60

Register Balance as of 08/31/2017 -47,633.45 337,705.60

New TransactionsDeposits and Credits - 1 item

Payment 09/01/2017 65521 Goleta Water District 91,121.00 91,121.00

Total Deposits and Credits 91,121.00 91,121.00

Total New Transactions 91,121.00 91,121.00

Ending Balance 43,487.55 428,826.60

Cachuma Conservation Release Board, Unaudited Interim Financial Statement09/05/17 Reconciliation Detail

1010 · Union Bank Checking #4102, Period Ending 08/31/2017

Page 1

Aug 31, 17

Beginning Balance 385,339.05Cleared Transactions

Checks and Payments - 17 items -129,000.85Deposits and Credits - 3 items 81,367.40

Total Cleared Transactions -47,633.45

Cleared Balance 337,705.60

Register Balance as of 08/31/2017 337,705.60

New TransactionsDeposits and Credits - 1 item 91,121.00

Total New Transactions 91,121.00

Ending Balance 428,826.60

Cachuma Conservation Release Board, Unaudited Interim Financial Statement09/05/17 Reconciliation Summary

1010 · Union Bank Checking #4102, Period Ending 08/31/2017

Page 1

City of Santa Barbara Goleta Water District Montecito Water District

Cachuma Conservation Release Board Agenda Letter

Board of Directors

For Agenda Of: October 18, 2017 Estimated Time : 10 min Continued Item: No If Yes, date from:

TO: Board Members FROM:

Lauren Hanson, board president

SUBJECT: Fiscal Year 2015-16 and Fiscal Year 2016-17 Reconciliation

Legal Concurrence:

As to form: N/A Recommended Actions: Receive a report on member agency assessments for Fiscal Year (FY) 2015-16 and FY 2016-17, and consider directing a constructive return of remaining unexpended funds. Discussion During FY 2015-16 and FY 2016-17, CCRB issued quarterly assessments to its member agencies, based upon the anticipated expenditures contained in the Board approved adopted budgets. However, actual expenditures proved to be less than the amounts originally assessed. Recognizing that the anticipated expenses associated with the FY 2017-18 adopted budget are significantly less than the current fund balance of $485,502.82 and projected FY 2017-18 assessments, the Board may wish to direct that a constructive return (or rebate) be made to each member agency. Based on the unaudited net assets as of June 30, 2017, $393,603.58 in excess funds is available, which would be rebated according to the reconciliation table shown in Attachment 1. The Goleta Water District is due $66,306.21, the City of Santa Barbara is due $247,913.96, and Montecito Water District is due $79,383.41. Alternatively, the CCRB Board may elect to hold these excess funds to offset future upcoming FY 2017-18 assessments. Fiscal Analysis: Should the Board direct a rebate of unspent prior assessments, the remaining fund balance combined with anticipated income derived from FY 2017-18 assessments is sufficient to cover FY 2017-18 expenditures included in the adopted and approved FY 2017-18 Budget.

CCRB Board of Directors, October 18, 2017 CCRB Fiscal Year 2016-17 Final Reconciliation Page 2 of 2

Attachments:

Attachment 1—Reconciliation of Unrestricted Net Assets and Rebate Calculation.

Authored by:

David Matson, Assistant General Manager, Goleta Water District

Francis Chan, Chief Financial Officer, Goleta Water District

Ryan Drake, Water Supply & Conservation Manager, Goleta Water District

 

 

 

 

 

Attachment 1—Reconciliation of Unrestricted 

Net Assets and Rebate Calculation 

CCRB ‐ Reconciliation of Unstricted Net Assets and Rebate Calculation

FY 6/30/17

Rebate Calculation: GWD SB Montecito46.03% 40.88% 13.09%

FY 6/30/16 Unrestricted Net Assets (unaudited) 462,393.16     212,839.57   189,026.32 60,527.26    

FY 6/30/17 Unrestricted Net Assets (unaudited) 144,049.99     66,306.21     58,887.64    18,856.14    

Total Rebate Due 279,145.78   247,913.96 79,383.41    Less:  GWD Applied* (212,839.57)

66,306.21     247,913.96 79,383.41     393,603.58

Analysis of Available Cash for Rebates:

Cash Balance at 6/30/17 359,422.89    GWD Final 2017 Payment 126,079.93    

485,502.82    Less:  FY 2016 and FY 2017 Rebates (393,603.58)    Remaining cash for anticipated Accounts Payable

Net Cash 91,899.24            balances as of 6/30/17.

Notes:

Assessments resulting from the CCRB Board of Directors adopted FY 2017‐18 budget have been sent.  CCRB received $91,121 from GWD on 8/17/17. 

*  Prior to making its final payment at the end of FY 2016‐17,   GWD reconciled the amount assessed against actual expenditures and remitted the net balance.   

City of Santa Barbara Goleta Water District Montecito Water District

Cachuma Conservation Release Board Agenda Letter

Board of Directors

For Agenda Of: October 18, 2017 Estimated Time : 10 min Continued Item: No If Yes, date from:

TO: Board Members FROM:

Lauren Hanson, board president

SUBJECT: Update on Future Hydrologic and Biologic Work Efforts in Fiscal Year 2017-2018

Legal Concurrence:

As to form: N/A Recommended Actions: Receive an update on future hydrologic and biologic work efforts necessary in Fiscal Year 2017-2018. Discussion: The CCRB Budget includes $80,000 for hydrologic technical support (Budget Account 7500). On December 19, 2016 the Board adopted Resolution 2016-03 authorizing expenditures in the amount of $25,000 for hydrologic modeling work by RMC. As additional necessary work was identified, the Board subsequently on January 18, 2017 modified Resolution 2016-03 to allow expenditures of up to $37,878. That work was paid in full. The Board subsequently further modified Resolution 2016-03 on July 7, 2017, which authorized a new not-to-exceed amount of $44,686 in order to pay for certain model improvements. On August 24, 2017, the Board authorized RMC to perform additional modeling work and peer review in an amount not-to-exceed $16,670. Accordingly, CCRB is under contract for $23,478 in work during FY 2017-2018 that was previously authorized. On September 21, 2017, the Board authorized additional modeling work for $58,645, bringing the total to $82,123, with the Board shifting $2,123 from the $40,000 contingency (Budget Account 6500) in the Budget. The CCRB FY 2017-2018 Budget also includes $53,052 (Budget Account 6001) for Biological Opinion consulting support, with a $40,000 contingency (Budget Account 6500) for Biological Opinion consulting work. Previously, the CCRB Interim General Manager authorized work from ICF in the amount of $5,000 for support work related to an alternative RPA. On September 21, 2017, the Board authorized its general counsel to enter into a contract for $66,590 for biological support services. Since the work authorized exceeded the budgeted amount for the year, the Board authorized shifting $28,590 from the contingency

CCRB Board of Directors, October 18, 2017 Update on Future Work Efforts Page 2 of 2

(Budget Account No. 6500) for Biological Opinion consulting support towards the authorized work. In sum, in the first quarter of FY 2017-2018, all of the anticipated funds for hydrologic and biological consulting services have been committed, with $9,287 remaining in contingency funds allocated for the rest of FY 2017-2018 (Budget Account No. 6500). Member agency staff have reviewed ongoing agency efforts and determined that no critical projects exist beyond the current work authorized by the Board. While future support for calibration of the Santa Ynez hydrologic model utilizing additional data points is ideal, such efforts are not critical at this juncture. It is anticipated that additional hydrologic and biologic consulting services may be required later in the year after planned meetings and developments related to the SWRCB water rights hearing and the USBR-NMFS biologic re-consultation process, particularly if there are any follow-up questions or information requests from the SWRCB or the federal agencies. Fiscal Analysis: The adopted Fiscal Year 2017-2018 Budget provides for all currently approved work efforts. Should additional work efforts become necessary later in the year, CCRB will have to consider whether current contingency budgets will be adequate, and if not, how savings from other line items can be utilized. Attachments:

None. Authored by:

Ryan Drake, Water Supply and Conservation Manager, Goleta Water District

City of Santa Barbara Goleta Water District Montecito Water District

Cachuma Conservation Release Board Agenda Letter

Board of Directors

For Agenda Of: October 18, 2017 Estimated Time : 10 min Continued Item: No If Yes, date from:

TO: Board Members FROM:

Lauren Hanson, board president

SUBJECT: Administrative Functions Update

Legal Concurrence:

As to form: N/A Recommended Actions: Receive an update from board president Hanson concerning the organization’s administrative functions. Discussion Temporarily without a Chief Executive, the Cachuma Conservation Release Board (CCRB) continues to perform necessary day-to-day tasks and strategic work in furtherance of water rights protection, with assistance from CCRB member agency staff and consultants. At the direction of the board president, the agency will continue to accomplish necessary administrative tasks while the search for a permanent General Manager is ongoing. Regarding general administrative matters, CCRB member agency staff continue to prepare agenda items with input from CCRB consultants and Board members. Since the last Board meeting, member agency staff has acquired a new Post Office Box for CCRB, and have updated the CCRB website and vendors to reflect the new address. The CCRB email server has also been cleaned up to discontinue the accounts of prior General Managers. Finally, an agreement has been worked out with CCRB’s storage space vendor to allow CCRB to pre-pay its monthly storage invoices to avoid any late fees incurred due to differences in timing between CCRB’s typical invoice processing and the billing cycle of the vendor. Concerning accounting and financial matters, the board president continues to work with Accountability Plus to ensure that all necessary invoices are appropriately processed, including coding bills to be paid. The board president has been working with CCRB’s auditor, Bartlett, Pringle and Wolf, to provide information necessary for the completion of the Fiscal Year 2015-16 audit.

CCRB Board of Directors, October 18, 2017 CCRB Administrative Functions Page 2 of 2

For tasks related to strategic efforts for protection of member agency water rights, member agency staff continue to engage with Cal Strategies, LLC (CalStrat), Woodard & Curran, and ICF to ensure that necessary advocacy and environmental work continues per the Board’s direction. Fiscal Analysis:

None Attachments:

None

Authored by:

Ryan Drake, Water Supply & Conservation Manager, Goleta Water District