MINUTES OF A REGULAR MEETING

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, MARCH 18, 1997

Present:	Directors Abel, Campbell (arrived at 3:15 p.m.), Muller, Puddicombe and Wilson
Absent:	None
Also Present:	C. Charles Evans, General Manager/Secretary Chip Wullbrandt, District Counsel Evalyn Kerman, Business Manager Tom Mosby, Engineering Manager Jerry Paley, Financial Specialist Philip P. Kirst Darrell Becker

Director Muller asked that the sales and investment reports be removed from the consent agenda for discussion. A motion was made by Director Puddicombe, seconded by Director Wilson and unanimously carried to approve the consent agenda with one recommended change to the minutes by District Counsel. The Board discussed the water sales and asked several questions regarding the investment report. A motion was made by Director Puddicombe, seconded by Director Abel and unanimously carried to approve the water sales report for February 1997 and the investment report of March 13, 1997.

Director Wilson said that he had discussed with the President of the Montecito Association scheduling a visit to Jameson Lake and that the President of the Association would be contacting the General Manager with the number of people interested in the tour and possible dates.

A motion was made by Director Puddicombe, seconded by Director Wilson and carried 4-1, with Director Campbell opposed, to accept the offer of Peter Home for the purchase of the District's property at 192 Santa Elena for $327,050 and to accept the offer from Philip Kirst for $326,000 as a backup offer.

A motion was made by Director Campbell, seconded by Director Abel and unanimously carried to approve the engagement of Penfield & Smith relative to the proposed Buell Reservoir property lot line adjustment/lot split at a cost not to exceed $10,000 and to appropriate $ 10,000 from the Capital Repair and Replacement Reserve Fund for Us work. Counsel Wullbrandt recommended the District work with Mr. Yochum at Penfield & Smith.

The General Manager reported that the County had approved the lot line adjustment/ lot split for Linda Blitz regarding the purchase of a portion of the Buell property.

A motion was made by Director Abel, seconded by Director Puddicombe and carried 4-0-l,with Director Wilson abstaining to support the Montecito Association by renewing membership at the guardian level of $250.00.

The Board discussed the proposal to change directors' elections to coincide with federal elections. The Board agreed that it would be less expensive but were concerned about making a change that would affect a future Board, and that if combined with a larger election might not get as much attention as the larger issues. Director Campbell stated that the Special Districts Association would be recommending this action to all its members. The Board indicated that this matter should be considered again when that action is taken.

The Board reviewed the letter ACWA/JPIA had sent to Casa Dorinda rejecting its claim.

President Muller informed the Board on the status of the seismic work at Bradbury Dam. He said that Bud Girard, an engineer previously an employee of Montecito Water District had been hired to inspect this work for the COMB.

President Muller said that at the COMB meeting held on March 17, 1997, the COMB Board had voted to replace the law firm of Price, Postel & Parma with another firm. Counsel Wullbrandt said that Mr. Pike, the attorney for the City of Santa Barbara, had said that the City's objection was to Montecito Water District's attorney serving as the attorney for COMB. He stated that if Price, Postel & Parma withdrew as Counsel for Montecito Water District then the City of S.B. would withdraw recommending a new firm be hired for COMB.

Director Puddicombe made a motion to approve Resolution No. 1830, to allow a closed session item to be added to the agenda after it was posted to discuss the litigation between Lompoc and the USBR and COMB. It was seconded by Director Abel. A roll call resulted as follows:

The Board went into closed session at 4:27 p.m. When the Board returned to open session at 5:00 p.m, it was reported that no action had been taken.

Director Abel reported that the SWRCB Board Order 94-5 studies were discussed in closed session, Director Abel mentioned that Steve Mack is the Studies Administrator for the 94-5 studies, and that he will be writing a monthly update on the development of each of the studies. Director Wilson commended the CCRB Board on establishing these reports which enables everyone concerned to have knowledge on the status of the studies and provides increased communication.

Director Abel said that a report was included in the packet regarding CCRB legal pending issues. She and Counsel Wulbrandt reviewed some of the key issues.

The General Manager reported that be bad attended the ACWA/JPIA meeting regarding the Hill case reimbursement and legal representation. He said that a letter had been sent to ACWA/JPIA requesting reimbursement of some of the legal costs regarding the Hill matter that had to do with charges per hour in excess of what JPIA was willing to pay. It had been agreed in the beginning that the District would hire Price, Postel & Parma, and if JPIA wouldn't pay the hourly rate, the District would; the District would take the matter up later. In addition, ACWA/JPlA came into the lawsuit later than the District thought appropriate. The Board had authorized a letter be sent to JPIA requesting reimbursement. ACWA/JPIA went into closed session to discuss this and there was no answer provided yet. JPIA is moving towards having different counsel instead of the District's. At this time the ACWA/JPIA attorney is only involved in matters that are covered insurance matters and, if they are not covered, they have to be handled by the District's Counsel and it is difficult to figure out who should manage the case. JPIA is considering covering all aspects of a particular case. State law says that if a commercial insurance company represents you they have to represent all issues. ACWA/JPIA has stated in the past that it is not bound by the law. JPIA's position is currently being evaluated. The Chief Claims Examiner felt that premiums would only be increased 10% if fall coverage were provided.

Director Abel said that she had attended the ACWA Region 5 meeting on March 10, 1997. She gave the Board some handouts about the Los Vaqueros Project in Contra Costa County. Counsel Wullbrandt had toured the dam and he said that Contra Costa is building and financing the project themselves, and is a federal project so it needs to be built to Bureau standards. The $450 million dollar project will cost each of its customers $8.00 per service connection per month. Director Abel mentioned the handout on Cadillac Desert. She said that it is being turned into a four part documentary. It will premiere on public television starting June 24. She reported on another handout from Diablo Water District regarding special district reorganization and a handout regarding findings of a survey by LAFCO Executive Officers in regards to consolidations. She said that Counsel Wullbrandt had reported on anadromous fish at the meeting.

Director Campbell reported on the Proposition 218 seminar that he and the General Manager had attended on March 14. The proposition has many ambiguous statements, but certain rates and charges may be exempt from this proposition. From this point 67% of the voters in the community will need to approve certain charges and the District will not be able to do certain types of funding without their consent in the future. He said that he did not feel the consequences had been fully appreciated by the proponents and that this will cause major interruptions in public funding. He said the cost of doing business will go up.

President Muller said that there was nothing to report since the Operations Committee had not met.

Director Wilson said that there was nothing to report since the Finance Committee would not be meeting until March 20, 1997.

Director Abel said that there was nothing new to report for the Public Information Committee except that the District’s newsletter should be sent to District customers prior to April 1.

President Muller said that the Water Marketing Committee had not yet met so there was nothing new to report.

Director Campbell said that he will have a LAFCO and Special District report. The Board discussed reporting forms for office holders. Counsel Wullbrandt advised the Board that the Board used to only have to disclose investments that were within the District and now the Board has to disclose all investments.

Note: The agenda was posted at the front counter and outside front wall at the Montecito Water District on March 14, 1997