MINUTES - TUESDAY, JUNE 17, 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, JUNE 17, 1997

Present:	Directors Campbell, Muller, Puddicombe and Wilson
Absent:	Director Abel
Also Present:	C. Charles Evans, General Manager/Secretary Chip Wullbrandt, District Counsel Cathy Muneio, Secretary Steve Decker Bill Raymond

The Board and Counsel suggested several changes to the minutes. A motion was made by Director Puddicombe, seconded by Director Wilson and unanimously carried to approve the amended minutes of June 3, 1997.

The Board reviewed the water sales reports for May. The report showed production at 617 acre feet. The General Manager commented that the last three months showed the highest usage during each of the months over the last twenty-seven year period.

A motion was made by Director Puddicombe, seconded by Director Wilson and unanimously carried to approve prepaying $265,000 of the State Water Project 1997-98 obligation to CCWA during June 1997 and to approve the July 1, 1997 semi-annual payment of $1,625,380 to CCWA.

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

Bill Raymond, Executive Director of the Montecito Association, gave a brief report on the upcoming July 4th festivities. Director Wilson reported that, at the Association meeting, the Fire District indicated it would be receiving two foam trucks.

The Engineering Manager said that this item was considered by the Operations Committee. He said the Shade Ranch may have a prescriptive right to the easement on the Yaggy property, and that the District had been negotiating the size and location of the easement. A motion was made by Director Puddicombe, seconded by Director Campbell and unanimously carried to approve an 18 foot access road easement across the District’s Yaggy property for the Shade Ranch at a cost to the Shade Ranch of $800. Counsel Wullbrandt suggested that this easement also include a quitclaim for any other easements that may be on the property.

The Board discussed the request from the U.S. Forest Service to use $2,000 of the District’s Challenge Grant Funds for an exotic species removal program. This is a pilot program and the USFS would like to study what happens to native species if the exotic species such as the bullfrog are removed. Director Puddicombe moved to approve the request of $2,000 of the District Challenge Grant Funds. It was seconded by Director Campbell. The motion carried 3-1, with Director Campbell voting no.

The Engineering Manager reported on the request by Santa Barbara Cellular Systems to locate a cellular antenna at the District office. He said that the request is for attaching a whip antenna to the District’s antenna and a small 4 x 5 x 8 foot area located behind the Engineering Manager’s office. Bill Raymond requested that the District make sure that the proper permitting and public review process is completed. Counsel suggested liability and access releases. Mr. Raymond mentioned that a proposed Cellular Ordinance is to be considered by the Board of Supervisors in July that will ensure that all the proper processes are completed before a cell site can be installed. He also said he did not understand why an additional cell site was necessary since there was a large one on the QAD property on Ortega Hill Road which was expected to take care of the necessary capacity in Montecito. A motion was made by Director Puddicombe, seconded by Director Campbell and carried 3-0-1, with Director Wilson abstaining, to conceptually approve the request of Santa Barbara Cellular Systems to place a cellular antenna at the District Office, with the requirement that all permitting processes are to be completed.

The Board reviewed the District Cash Flow Report through April 1997 which included May sales. It was noted that the District had a positive cash flow.

Director Campbell reported that the Finance Committee had reviewed the agreement with Mac Farlane, Faletti & Co. LLP to prepare the 1996-97 audit. A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to approve the letter agreement with Mac Farlane, Faletti & Co. regarding audit services for the year ending June 30, 1997.

President Muller reported on the seismic work at Bradbury Dam. He indicated that the Consulting Engineer’s report had been reviewed. He said that there would be a brief tour of Bradbury Dam seismic work completed to date on June 18, 1997.

There was no additional information to report on the status of the SWRCB Board Order 94-5 Studies.

Counsel Wullbrandt will be meeting with Jean Baldrige and representatives from NMFS to give a presentation on anadromous fish.

Director Wilson said that the Lompoc III lawsuit was on hold but a ruling is expected prior to the time that the CCWA payment is due.

Director Wilson reported on his attendance at an ACWA electric industry deregulation training session on June 4, 1997.

Director Wilson reported on the CCRB meeting of June 12, 1997. He stated that CCRB had authorized proceeding relative to the Cachuma water rights permit amendment regarding place of use, and that it was possible that the Santa Ynez River Water Conservation District may file a protest.

Director Campbell reported on the LAFCO meeting of June 12, 1997 in Lompoc. He said that amendments to the Lompoc General Plan were discussed, as were water requirements necessary if these amendments were made. He also reported that the Montecito Fire District was very upset about LAFCO not voting for the Fire District to serve the Westmont College faculty housing, and therefore had voted against Tim Campbell as a special district’s representative to LAFCO.

The Board also discussed the report from Bob Braitman for reorganizing special districts. The Board expressed concern at the way this report was sent without prior discussion with the individual special districts. Director Campbell also reported on the proposed legislation that would allow for a change in the protest requirements during a reorganization.

President Muller reported on the COMB meeting of June 16, 1997. He said that the transfer of operation and maintenance contract renewal at Cachuma was discussed and that most issues had been resolved between COMB and the USBR. There was still the issue of establishing a reserve fund budget item by the member units to be resolved. The USBR would like the member units to have the interest earned for this fund remain on that budget line. The member units feel that they should be able to use the interest any way that they would like. He also reported that the Board did not remove the $150,000 for the office remodel from the budget.

Counsel Wullbrandt said that the contract for the operation and maintenance between the USBR and COMB is still being negotiated and the issue of whether the USBR will indemnify COMB for anything is being negotiated. Another issue being discussed is if budgeted funds are not used in the current year should these funds go to offset next year’s costs. The USBR indicated that all surplus budgeted funds would go toward paying the total capital costs. This is not in the best interests of the member units.

President Muller said that the City of Santa Barbara was requesting that all the member units contribute in an ACWA sponsored MTBE testing of recreational reservoirs to determine the extent of contamination from motor boats. Counsel Wullbrandt stated that the County Parks should be responsible for paying this in the future.

President Muller asked that the ratification of COMB Resolution 239 be placed on the next regular Montecito Water District agenda. This resolution identifies which agencies do what studies and projects.

Director Puddicombe stated that several items were already discussed under separate agenda items regarding the Operations Committee meeting. He said that the committee expected that the District Board would meet with Roy Jensen, a director of the Montecito Fire District, regarding constructing a pump station for improving pressure and water flow in the East Mountain Drive area as part of the development of the Burden property. He also said that the committee had discussed the Buell Reservoir project and planned to meet with Penfield and Smith at the site. He reported that Cathy Atkinson had requested to share the telephone conduit at Bella Vista rather than dig up the road. The Engineering Manager will determine a cost to charge Ms. Atkinson for this proposed use. If the conduit needs to be moved later the District will have the right to do so. The committee also discussed the desalination agreement.

Director Campbell gave the Finance Committee meeting report. He said that most items had already been discussed on the agenda. The committee had reviewed the CCWA reserve policy as proposed by the CCWA, and the committee felt that the reserve amount of $4,000,000 was excessive. He said the committee also reviewed the proposed 1997-98 capital cost recovery fees and the water availability fee and discussed the public meetings regarding these fees.

Director Campbell said that the Special District’s Association will be discussing on June 23rd changing the County elections to coincide with the federal elections and what the cost savings would be if the election year is changed. The General Manager mentioned that as soon as Director Abel returns, the Public Information Committee will need to meet regarding the summer newsletter.

The General Manager said that the Ad Hoc Committee would be meeting on June 25th. The committee had met and asked that Smith

Barney come to the next Ad Hoc Committee meeting to discuss the proposed restructuring of the debt.

A motion was made by Director Campbell to approve Resolution No. 1835 adding a closed session agenda item to discuss personnel matters. It was seconded by Director Puddicombe. A roll call vote resulted as follows:

The Board went into closed session at 6:05 p.m. When the Board returned to open session at 6:31 p.m., the Board agreed by consensus that the cost of living salary adjustment should be set at 3%, and also approved the following additional salary increases: Engineering Manager, 6%; Business Manager, 5%; Engineering Assistant, 3%; and Dam Caretaker, 3%. The Board approved a total increase of 4% for the General Manager.

Note: The agenda was posted at the front counter and outside front wall at the Montecito Water District on June 13, 1997.