MINUTES - JANUARY 7, 1997

MINUTES OF A REGULAR MEETING
of the
BOARD OF DIRECTORS OF THE MONTECITO WATER DISTRICT
held at the
DISTRICT BOARD ROOM

583 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA
at 3:00 p.m. on TUESDAY, JANUARY 7, 1997

CALL TO ORDER AND ROLL CALL

The meeting was called to order by President Muller at 3:00 p.m.

Those in attendance were:

Present:	Directors Abel, Campbell, Muller, Puddicombe and Wilson
Absent:	None
Also Present:	C. Charles Evans, General Manager/Secretary Chip Wullbrandt, District Counsel Gary Ricks, Counsel Cathy Muneio, Secretary Steve Decker

RESOLUTION NO. 1829 EMERGENCY RESOLUTION

Director Puddicombe made a motion to adopt Resolution No. 1829 authorizing the Board to add to the agenda a closed session item to discuss possible litigation. It was seconded by Director Wilson. The motion passed with a roll call vote as follows:

	AYES: Directors Abel, Campbell, Muller, Puddicombe and Wilson
	NOES: None
	ABSENT: None
	ABSTAIN: None

LETTER TO COUNTY PLANNING REGARDING MONTECITO WATER RESOURCES

The Board discussed the letter to the County Planning and Development Department regarding the Montecito Water Resources section of the Montecito Growth Management Plan. Director Campbell made a motion to approve the letter with several additional comments:

it should include the question as to why staff was not given an adequate opportunity to comment on the plan,
it should be pointed out that the District is upgrading pump stations and planning to install a new fire flow pump to improve pressure in the water mains, and
the CCWA construction status report should be sent with the letter. It was seconded by Director Abel. The motion carried unanimously.

CLOSED SESSION TO DISCUSS POSSIBLE LITIGATION

The Board went into closed session at 3:20 p.m. since Counsel Ricks had arrived. When the Board returned to open session at 4:30 p.m. it was stated that no action had been taken

RATIFICATION OF LETTER TO SWRCB

Director Puddicombe made a motion to ratify the letter to the State Water Resources Control Board regarding District applications No. 28670 and 28671. It was seconded by Director Abel. The motion carried unanimously.

ADMINISTERING OF WARREN ACT TRUST FUND AND CACHUMA RENEWAL FUND

The Board discussed possible candidates to represent COMB and the member units on the committee that will prepare the plan for the use of the Warren Act Trust Fund and the Renewal Fund. Director Abel stated that CCRB would be meeting on January 15 to provide recommendations for the COMB and member units representative. President Muller said that the USBR had appointed Jim McNamara as their representative on the committee. The Board came to the consensus that:

the Trust Fund and Renewal Fund should be administered together,
the process for administering the funds should be the process established by the Trust Fund,
the COMB Board should appoint the member units’ representative, and
funding for water rights issues should be handled by the CCRB Board, and that funding for Cachuma betterment should be handled by the COMB Board, with overlap issues to be approved by both Boards.

Director Campbell made a motion to have COMB appoint an elected official to be the representative on the committee that will administer the Cachuma Trust Fund and the Renewal Fund. It was seconded by Director Wilson. The motion carried 4-0-1, with Director Abel abstaining.

MINUTES OF DECEMBER 17, 1996

Director Puddicombe moved to approve the minutes with the suggested change. It was seconded by Director Abel. The motion carried unanimously.

DIRECTORS COMPENSATION

The General Manager explained that compensation for Directors was reviewed annually and unless any action was taken the Directors would get an automatic 5% cost of living increase. After discussion a motion was made by Director Puddicombe to adjust the Directors’ compensation with a 2% cost of living increase for 1997. It was seconded by Director Wilson. The motion carried unanimously.

PUBLIC FORUM

No public was present during public forum.

Director Wilson left at 5:30 p.m.

MONTECITO ASSOCIATION CONSENT AGENDA

No report was given for the Montecito Association.

The Investment of District Funds and Report on the Water Distribution System and fire flow upgrade program and water availability charge funds were removed from the consent agenda for discussion. Director Campbell made a motion to approve the consent agenda. It was seconded by Director Puddicombe. The motion carried unanimously. Director Campbell moved to ratify the transfer on December 31, 1996 of $600,000 from the District’s Montecito Bank & Trust operational account to the District’s LAIF/General Repair & Replacement/Operations fund account. It was seconded by Director

Puddicombe. The motion carried unanimously. The Board discussed whether or not the District engineering costs should be charged to the water availability charge funds. This item was referred to the General Manager and then to the Finance Committee for a recommendation. Director Puddicombe asked that the fire hydrant reimbursement program and the bank loan balance be added to this report.

VERBAL REPORT ON FOX AND ALDER CREEKS

The General Manager explained that a letter had been sent to Maeton Freel of the U. S. Forest Service stating that the District would begin diverting water from Fox Creek on January 13. Director Abel asked the General Manager several questions regarding the Fox and Alder Creek diversions. The General Manager said her questions were addressed in the Operations and Monitoring plan, which is still being prepared and will be presented to the Board at the next meeting. The General Manager said that flow control and measurement work is still needed to be completed at Alder Creek so diversion will not yet begin there.

ATTENDANCE AT LIQUID GOLD CONFERENCE

Director Puddicombe made a motion to authorize the four directors interested in the Liquid Gold conference to attend. It was seconded by Director Campbell. The motion carried unanimously.

LETTER TO CITY OF SANTA BARBARA RE DESALINATION

The Board reviewed the letter that was sent to the City of Santa Barbara regarding the desalt plant. Director Campbell asked if there was any indication on what Goleta Water District was doing. The General Manager said that he didn’t think Goleta Water District had made a decision yet.

MEMBERSHIP IN NATIONWIDE PUBLIC PROJECTS COALITION

Director Abel made a motion to not continue participation in the Nationwide Public Projects Coalition. It was seconded by Director Puddicombe. The motion carried 4-1 with Director Campbell opposed.

LOMPOC PLAIN WATER QUALITY MOU

Following considerable discussion about the advisability of the work, Director Puddicombe made a motion to approve District participation through the Cachuma Conservation and Release Board in a Memorandum of Understanding for cooperation on technical resolution of the Lompoc plain groundwater basin water quality issues. It was seconded by Director Abel. The motion carried unanimously.

VERBAL STATUS REPORT

COMB
SEISMIC WORK

President Muller reported that no seismic work was being done at this time due to the rains.

LOMPOC LAWSUIT AGAINST USBR

President Muller said that there was nothing in addition to the closed session to report.

CCRB
SWRCB 94-5 STUDIES

Director Abel said that there was nothing new to report regarding the status of the SWRCB Board Order 94-5 studies.

FISHERY MATTERS OTHER THAN 94-5 STUDIES

Director Abel reported that copies of the Fishery Study Report were made available at the CCRB meeting of December 18th.

Director Abel reported that ACWA has a meeting on Jan. 14 with Doug Wheeler, secretary of the Water Resources Agency and his chief deputy. Issues to be discussed will be the state’s response and coordination and assistance to water agencies in responding to the Cojo and Steelhead listing.

VERBAL REPORTS ON MEETINGS

CCRB OF 12/18/96

Director Abel said that everything had already been covered relative to the Cachuma Conservation and Release Board meeting of December 18, 1996.

CCWA MEETING OF 12/19/96

Director Muller said that a written report on the Central Coast Water Authority was included in the Board packet and Director Puddicombe stated there was nothing in addition to add to this report. The General Manager said that he would like to send a letter to CCWA requesting that they consider funding the sixth year of capitalized interest on the CCWA bonds since the project has been delayed. The Board concurred.

COMMITTEE REPORTS
OPERATIONS

The Operations Committee had not met so there was nothing to report.

FINANCE COMMITTEE

The Finance Committee will be meeting on January 8th so there was no report at this time.

PUBLIC INFORMATION COMMITTEE

Director Abel reported that the next newsletter is being prepared and that it will include the President’s remarks at the anniversary regarding the new idea of expanded uses of water. There will be an article on the desalt decision. Director Abel asked that if any of the Board had suggestions for the newsletter to please let her know.

WATER MARKETING COMMITTEE

The Water Marketing Committee have scheduled a meeting for Friday, January 10, 1997. The General Manager said that he would be meeting with Director Campbell and Abel on January 9th regarding talking to the Goleta Water District directors about water marketing.

NEXT AGENDA ITEMS

Director Campbell asked that the next agenda include an update on the Special Districts Association and LAFCO.

ADJOURNMENT

The meeting was adjourned at 6:22 p.m.

Respectfully Submitted,

________________________________
C. Charles Evans, Secretary

Approved:

_______________________________
H. J. Muller, Jr., President

Note: The agenda was posted at the front counter and outside front wall at the Montecito Water District on January 3, 1997.