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

583 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA
at 9:00 A.M. on TUESDAY, MAY 3, 2000

CALL TO ORDER, ROLL CALL, DETERMINATION OF QUORUM

The meeting was called to order by President Puddicombe at 9:00 p.m.
Those in attendance were:

AWARD OF BID FOR MIRAMAR BEACH DRIVE WATER MAIN EXTENSION PROJECT

Engineering Manager Tom Mosby reported that the Operations Committee had met on May 2, 2000 to discuss this item. He noted that this project has been discussed between MWD and the Miramar Beach Homeowners Association (MBHOA) since 1986. Mr. Mosby noted that he had met with the MBHOA, and that everyone was in agreement with the scope of the project. President Puddicombe noted that this project would only move forward if all contingencies are met since the Union Pacific Railroad (UPRR) is involved in the area where the pipeline will be installed. Manager Adjarian said a meeting was scheduled between MWD staff and representatives of the MBHOA at Price, Postel and Parma on May 4^th to discuss entering into an agreement to clarify the responsibilities of all project participants. Mr. Mosby noted that this project would increase fire flow protection and allow for circulation of water by looping the distribution system. A motion was made by Director Abel, seconded by Director Wilson and unanimously carried to award a bid to Lash Construction for a new 8-inch water main on Miramar Beach Drive in the amount of $71,220 subject to:

1. Receipt by MWD of satisfactory easement or license agreement, provided by the MBHOA for the construction, operation and maintenance of the new District main within the UPRR right-of-way.
2. Execution of a MBHOA/District cost share agreement.
3. Payment by MBHOA of all costs associated with the construction of this new water main, fire hydrant and services. Payment shall be a deposit paid to MWD in the amount of $48,2000 for the estimated proportionate MBHOA project cost of $42,048. All remaining funds on deposit with District will be returned to MBHOA upon completion of the water system construction and payment of all costs.
4. Appropriation of funds in the amount of $33,500 (including a $4,328 contingency) from the 1998A Bond for the District’s proportionate share of costs associated with this water main extension project.
5. Satisfactory fulfillment of the contractor’s contractual insurance and performance obligations.

CEQA NOTICE OF EXEMPTION (NOE) AND REPORT PURSUANT TO GOVERNMENT CODE SECTION 65402C
A motion was made by Director Abel, seconded by Director Drewry, and unanimously carried to approve the CEQA Notice of Exemption and Report Pursuant to Government Code Section 65402 c for the Miramar Beach Water Main Extension Project.

AWARD OF BID FOR LOWER TORO CANYON WATER MAIN REPLACEMENT PROJECT
Engineering Manager Mosby said that the Operations Committee had reviewed this item and recommended approval at its meeting of May 2, 2000. The Board had previously approved a scope of work revision in order to redesign service to Lower Toro Canyon Road to include the Toro Canyon Road South Coast Conduit turnout as the primary source of water for this portion of the community---with the Bella Vista Reservoir as a backup supply source. The new design also included an upgrade from an 8-inch to a 10-inch ductile iron pipe. Mr. Mosby also noted that during the design process, an additional 1,100 feet of 10-inch and 8-inch pipelines would significantly upgrade service to another portion of Lower Toro Canyon road. President Puddicombe noted that the additional work would not be funded out of the Water Availability Charge but, rather, the 1998 A Bond Funds. A motion was made by Director Wilson, seconded by Director Abel and unanimously carried to: (1) award a bid to Lash Construction for the new 10-inch and 8-inch water mains on lower Toro Canyon Road in the amount of $113,835 subject to satisfactory fulfillment of the contractractor’ contractual insurance requirements for the contractor and performance obligations. No appropriation of funds is necessary since the Board has already appropriated funding in the amount of $168,800 for this Water Availability Charge project; and 2) award a bid to Lash Construction for the work outlined in the optional bid schedule in the amount of $146,050, and to appropriate funding in the amount of $100,000, including a $8,915 contingency from the 1998 A Bonds for this project [in additon to the original Water Availability Charge appropriation of $168,800] for this project.

AWARD OF BID FOR MID TORO CANYON WATER MAIN REPLACEMENT PROJECT
Engineering Manager Tom Mosby reported that the Operations Committee reviewed this item and recommended it for approval at its meeting of May 2, 2000. This project was very important due to the number of main breaks in the mid-Toro Canyon area. He noted also that this project would establish additional fire protection to the Torito Road area and benefit the entire community of Montecito during a fire. MWD had decided to add a fire hydrant and to replace 600 feet of 8-inch cast iron pipe with 8-inch PVC C900 pipe to offset interference from cathodic protection systems serving two high pressure steel gas mains perpendicular to the District’s water main crossing Toro Canyon Road. Mr. Mosby noted that due to a change in the scope of work, there would be increased costs above the $41,200 previously appropriated by the Board. A motion was made by Director Wilson, seconded by Director Drewry and unanimously carried to: (1) award the bid to Lash Construction for the new 10-inch and 8-inch water mains on Toro Canyon Road and Torito Road in the amount of $56,393.50 subject to satisfactory fulfillment of the contractor’s contractual insurance and performance obligations; and (2) appropriate funding in the amount of $17,250, including a $2,057 contingency from the 1998A Bonds for this project.

MID TORO CANYON ROAD CEQA NOTICE OF EXEMPTION (NOE)
A motion was made by Director Abel, seconded by Director Wilson and unanimously carried to approve the posting of the Mid Toro Canyon Water Replacement California Quality Act (CEQA) NOE.

AWARD OF BID FOR BUELL PUMP STATION
President Puddicombe said that the Operations Committee had reviewed this item and recommended it for Board approval at its meeting of May 2, 2000. Engineering Manager Mosby said that this pump station would replace the old one no longer in use. This pump station would supplement the supply of water to Doulton Reservoir by "pushing" water from the Bella Vista Plant to customers in the upper Toro Canyon area assuring a more consistent supply during peak demand. A motion was made by Director Wilson, seconded by Director Puddicombe and unanimously carried to: (1) award the contract to Tierra Contracting, the low bidder for the Buell Pump Station project, in the amount of $86,100; and (2) appropriate funding in the amount of $75,000 from the 1998 A Bonds (in addition to the original November 1999 appropriation of $100,000) for this project.

GENERAL MANAGER’S REPORT

Manager Adjarian presented a draft letter that both he and General Manager Charles Hamilton of the Carpinteria Valley Water District (CVWD) had developed relative to the 1978 Joint Powers Agreement for the Cater Regional Water Treatment Plant costs shared between the City of Santa Barbara, Montecito Water District and the Carpinteria Valley Water District. Mr. Adjarian noted that this 1978 agreement was difficult to interpret, gave the City essentially unilateral authority and was not financially equitable to either MWD or CVWD. The Cater Plant will need significant upgrades to comply with increasingly stringent state and federal water quality regulations. Projected costs for the first round of upgrades is estimated between $40-$45 million. MWD and CVWD’s share would be $10,000,000 per agency. Additional upgrades may be needed in the near future for the Plant. The EPA will be promulgating seven major new regulations (e.g., Surface Water Treatment Rule, Disinfection By-Product Rule, Radon, Arsenic, etc.) over the next seven years that will significantly impact California water utilities.

ADJOURNMENT

There being no further business to come before the Board of Directors, the meeting was adjourned at 11:14 a.m.

Approved:

_____________________________
Robert W. Puddicombe, President

Attest:

____________________________
Frederick J. Adjarian, Secretary