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

Present:	Directors Campbell, Muller, Puddicombe and Wilson
Absent:	Director Abel
Also Present:	C. Charles Evans, General Manager/Secretary Chip Wullbrandt, District Counsel Tom Mosby, Engineering Manager Peg Boland Maeton Freel

President Muller welcomed Maeton Freel and Peg Boland of the U.S. Forest Service.

The Board had several suggested changes to the minutes. A motion was made by Director Puddicombe, seconded by Director Campbell and unanimously carried to approve the amended minutes of May 12, 1997.

STATUS REPORT OF USFS REGARDING BIOLOGICAL CHALLENGE GRANT WORK AT FOX AND ALDER CREEKS

Maeton Freel gave the first quarter status report of the biological challenge grant work at Fox and Alder Creeks. It included a discussion of field surveys completed to date, samples of the data collected, and the direction that the program will take in the future. Mr. Freel said that measuring flow rates and pool types worked okay but that radio tracking is proposed to minimize labor intensive field work. Director Wilson asked how often the USFS monitors Fox and Alder Creeks. He said that it is done on a weekly basis and that it takes 2-3 days to accomplish.

The General Manager asked the USFS to send the District copies of the raw data. The General Manager stated that the District Damkeeper, who is a biologist, might be available to help monitor and compile data. Director Campbell said that habitats vary substantially and criteria for species needs may vary. He asked if the USFS would be able to identify whether or not there is suitable habitat at these creeks and how long will this monitoring be necessary in order to determine the shared use of water resources at Fox and Alder Creeks. Maeton Freel stated he thought 2-3 years of monitoring would be sufficient. He gave a slide presentation indicating the species that are being surveyed and monitored at Fox and Alder Creeks.

Director Campbell reported that the Appeals Committee had visited the site at 2709 Vista Oceano. He said that the property will be leased by Kim Conway for the training of horses, riding lessons and the boarding of horses. The property consists of 12 pastures and a large barn with no agriculture or housing on the property. Director Campbell made a motion to ratify the recommendation of the Appeals Committee to make an exception to change this account from a domestic to recreational water rate. It was seconded by Director Wilson. The motion carried unanimously.

The General Manager reported that water production was very high for the month of April at 527.5 acre feet.

A motion was made by Director Campbell, seconded by Director Puddicombe and unanimously carried to ratify the May 16, 1997 transfer of $150,000 from the District’s Montecito Bank & Trust Operational account to the District’s LAIF/General Capital Repair & Replacement/Operations fund account.

A motion was made by Director Campbell, seconded by Director Puddicombe and unanimously carried to approve the payment of bills for the month of April.

Director Wilson reported on the Montecito Association meeting. He asked that the General Manager attend certain Montecito Association meetings to answer questions regarding costs of District water supplies.

A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to authorize two write-offs totaling $85.47.

President Muller said that the approval of the COMB 1997-98 budget had been postponed and that he would like to discuss with the COMB Board the budget item for the office renovation totaling $150,000 that is being carried over from this year. He said it does not appear that these funds will be used in the fiscal year but he has asked the COMB Manager to make a recommendation on either deleting this item from the budget or moving forward and having an architect do a conceptual drawing for the office renovation. It was the consensus of the Board that this District would like to see that the budget item not remain in the budget. A motion was made by Director Campbell, seconded by Director Puddicombe and unanimously carried to ratify the COMB budget and authorize Henry Muller to negotiate the budget item on the office renovation.

The General Manager explained that Doug Brown of Stradling, Yocca, Carlson and Roth has been hired to write an Opinion Letter relative to the tax-exempt status of the Santa Barbara Bank & Trust note for the Water Availability Charge Main Replacement Program. A motion was made by Director Puddicombe, seconded by Director Wilson and unanimously carried to approve the Certificate of the Montecito Water District regarding the designation of the Note under section 265(B)(3) of the Internal Revenue Code of 1986 for the $5,000,000 Promissory Note for the Water Availability Charge Main Replacement Program.

The General Manager explained that, when Director Wilson asked for some explanation for the justification behind adopting a two tier water rate several years ago, no backup documentation could be located. It was recommended that each Board member make sure in reviewing the minutes that there is an explanation for the reasoning behind approving motions and that there be a good paper trail. Director Wilson said that he felt each committee should document their reasons for recommendations to the Board. Director Campbell thanked Director Muller for writing down his views in written memorandum form.

The General Manager said that groundwater levels had lowered slightly but still remained high.

President Muller reported that Bud Girard was doing a good job in overseeing the seismic work. He said that the contractor had started digging the wedge and would dig until bedrock is reached, then fill the excavation with limestone. He said a trip will be scheduled to tour this project. He also reported that COMB has appointed Tom Anderle as its new counsel, subject to yearly review. He said the USBR budget was discussed and that COMB had received a briefing on how the budget was formulated. COMB has asked the USBR to provide a more complete explanation of the budget.

President Muller said there was nothing new to report on the Lompoc lawsuit against the USBR.

Director Wilson said that he would report the status of the SWRCB Board Order 94-5 Studies and Fishery matters other than 94-5 studies under the report of the Cachuma Conservation Release Board Meeting of May 14, 1997.

The General Manager reported that the Lompoc lawsuit against the USBR regarding water quality issues is proceeding and that the Bureau has said that even if they lose the lawsuit, the member units will not have to reimburse the Bureau. This lawsuit was transferred to Judge Carlton at the Sacramento court. Burke Wong is representing the USBR.

Director Wilson reported on the discussion in meeting with Mr. Luce and Mr. Kirk of the USBR. Commitments were made regarding improved communication with the USBR, the Bureau’s water rights staff, transfer of the O & M Agreement, seismic safety frustrations and the Hilton Creek project.

Jean Baldrige had written a proposal on what she would be proposing in the coming year. There was a discussion whether any studies should occur above the dam since CCRB was formed for below the dam water rights. Director Wilson felt that Jean Baldrige would be performing a watershed study above the dam. The General Manager said that CCRB was formed to protect the yield of Cachuma for the member units. The charter for CCRB specifically states that CCRB will not be involved upstream of the lake. When the Fish MOU was written it was acquiring information on the habitat below the dam, but studies are necessary above the dam because of the proposed listing of steelhead as an endangered species. CCRB will meet June 12 and would like to authorize moving forward with the management alternatives studies. Director Wilson asked from some direction from the Board on these studies.

The Public Information Committee had not met so there was nothing new to report.

Director Wilson asked that the Ad-Hoc Committee be added to the agenda under Committee Reports.

Note: The agenda was posted at the front counter and outside front wall at the Montecito Water District on May 16, 1997.