A motion was made by Director Puddicombe and seconded by Director Bachman to approve Resolution No. 1930 adding the Upper Toro Road Main Replacement Project to the agenda as an action item. Vote on the resolution by roll call resulted as follows:

President Abel, as a member of the Appeals Committee, presented the appeal and the Committee’s recommendation to the Board. Additionally she requested Mr. Wullbrandt to clarify the legal aspects of the issue. Mr. Wullbrandt noted that the Board needs to determine if they believe the water used is principally and predominantly for agricultural use.

Mr. Cappello presented Mr. Nesbitt’s case for continuing the agricultural rate at his Carpinteria Valley Farms.

The Board discussed the various information presented in the Staff Report and by Mr. Capello, and asked Mr. Capello for clarification on certain aspects of his testimony, including to confirm that there have only been two invoices for stolon sales provided- one for a 1997 sale provided to the District in 1999, and one for contingent sales in November of 2001 and appending sale for March of 2002. The Board also discussed its requirement that all Ag rate customers annually provided information to the District to support a finding of principal and predominant Ag use, which information the District uses in making required reports for USBR. The Board also discussed its past practice of providing a rate equivalent to the recreation rate for horse operations as an exception to the Residential rate when the Board did not find that those properties were using water principally and predominantly for Agriculture in the judgement of the Board. After discussion, it was moved by Director Drewry, seconded by Director Wilson and carried with Director Bachman abstaining, to grant a rate equivalent to the recreational rate of $1.69/HCF for water used at Carpinteria Valley Farm, 205 Lambert Road, Summerland.

The Board recommended that the Operations Committee, with staff and counsel, review MWD Ordinance No. 82 to expand the definition of Recreational Use to include those uses for which the Board has been approving a recreation rate equivalent as an exception to the Residential rate and prepare a revised ordinance for a future Board meeting.

1. time certain: 3:00 p.m. — review of east mountain drive Unauthorized meter sharing (apn 13-030-02, 13-030-04 and
   13-030-03)

Mr. Mervin Lane addressed the Board on the situation with his meter sharing arrangement with three other homeowners on East Mountain Drive. Ms Noell requested that the District consider the possibility of granting the residents meters at a lower cost than current meter costs. Mr. Richardson also addressed the Board.

After hearing the residents, the Board referred the matter to the Operations Committee for their recommendation.

After discussion, it was moved by Director Puddicombe, seconded by Director Bachman and unanimously carried to approve the amendment to the agreement in substantial conformity to that presented.

Engineering Manager Mosby briefly updated the Board on the status of the underground storage tank cleanup program at the MWD office property.

After discussion, it was moved by Director Puddicombe, seconded by Director Bachman and unanimously carried to appropriate $189,187.01 from the Capital Repair and Replacement Reserve to close-out the Buell Reservoir Project.

Mr. Wullbrandt noted that cleanup and maintenance of the site should be scheduled on an annual basis.

The property has been withdrawn from the market and is no longer designated "surplus lands." This appropriation will cover monies already spent on the site in preparation for sale. Had the property been sold, the cost would have been netted out of the sales proceeds. A job cost detail expense report can be found in the project files.

4. upper toro canyon road water main replacement

This item was added to the agenda by Resolution No. 1930, because the need to take action arose subsequent to the posting of the agenda for the February Board meeting.

Director Puddicombe reviewed the current status of this project for the Board. After discussion, it was moved by Director Puddicombe, seconded by Director Wilson, and unanimously carried to approve the contractor’s bid proposal submitted by Tierra Contracting, Inc. for the Upper Toro Canyon Road Phase Two Water Main Replacement Project; issue an Award of Bid and Notice to Proceed to Tierra Contracting, Inc. for the final phase of work in the contract amount of $162,750; and appropriate additional funds above the FY 2001/02 budget amount of $250,000 in the estimated amount of $71,500 to cover the phase two work for a total of $321,500.

President Abel called the Directors’ attention to the State Water Resources Control Board Technical Issues Update found in their Board Packets and the Member Unit Legal Issues Update that was distributed to the Directors prior to the start of the meeting.

President Abel reported that the COMB office building project has been referred back to committee. In the mean time, the COMB Board recommended that COMB acquire an additional trailer for the use of office staff.

COMB has recently completed its first annual performance review of the COMB General Manager.

Director Bachman reported to the Board on the subject meeting, which he attended as Director Puddicombe’s alternate.

Director Wilson reported to the Board on the subject meeting, which featured a presentation by LAFCO.

President Abel called the Board’s attention to the ACWA 2002 Goals and the State Legislative Committee Report. Mr. Wullbrandt noted that the Brown Act bill listed in the Legislative Committee report was written at the behest of MWD. This year’s ACWA budget is $42 million. President Abel has been elected to serve as one of only three at-large members of the ACWA Board’s Executive Committee.

President Abel will report on this item at the March meeting of the Board.

Director Puddicombe reported that the Operations Committee had not met since the January Board meeting. The next regular Operations Committee meeting is scheduled for March 4, and a special meeting at the Cater Treatment Plant is scheduled for March 8.

Director Wilson reported on the activities of the Finance Committee. The Committee has adopted a regular meeting schedule of the second Tuesday of each month.

President Abel reported that the Public Information Committee is scheduled to meet on Thursday, February 21 to begin work on the next issue of the MWD Newsletter.

Mr. Adjarian briefly updated the Board on pending issues, including the Upper Toro Road Main Replacement Project, the Ortega Reservoir Upgrade Project, the Cater Water Treatment Plant Upgrade Project, and District main breaks. He reminded the Board of the special Board meeting on the Cater Project scheduled for March 12 at 1:30 and notified the Directors that the tentative Special meeting for April 2 has been canceled.

Mr. Adjarian presented the Board with copies of the General Manager’s 2001 Year-End Review of Project Accomplishments. Key accomplishments included the District being awarded a low-interest state loan for the Ortega Cover Project, and the successful negotiation of a joint low-interest state loan with the City of Santa Barbara and Carpinteria Valley Water District for Phase 1 of the Cater Treatment Plant Upgrade.

Counsel Wullbrandt updated the Board on the status of the above litigation and any possible effects it might have on the District. In particular, Mr. Wullbrandt noted that the suit concerns Jones valves and other appurtenances, and not their fire hydrants. Mr. Wullbrandt will ask Mr. Mosby to check on whether the District has any Jones valves in service.

The Board recessed to closed session at 5:10 p.m.

President Abel reconvened the Board in open session at 5:25 p.m. and reported that Counsel Wullbrandt and Manager Adjarian had updated the Board on the current status of the litigation with Ocean View Estates Homeowners Association and received Board direction.

There were no requests from Directors for items other than regular agenda items to be included for next regular Board meeting scheduled for March 19, 2002.

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:30 p.m.

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Jan E. Abel, President

Attest: