MINUTES - TUESDAY, JULY 1, 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, JULY 1, 1997

Present:	Directors Abel, Campbell, Muller, Puddicombe and Wilson
Absent:	None
Also Present:	C. Charles Evans, General Manager/Secretary Chip Wullbrandt, District Counsel Tom Mosby, Engineering Manager Evalyn Kerman, Business Manager Cathy Muneio, Secretary

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 17, 1997.

The Board reviewed the water production report for June. The report showed production at 541 acre feet and it was estimated that water sales may be about 520 acre feet. The General Manager commented that the District’s high water usage had caused the reservoirs to drop which created a water flow problem for the properties on Bella Vista Drive. To help correct the problem the District contacted several of the agricultural customers in the area and requested that they not irrigate for 24 hours to enable the reservoirs to rise, and the District installed a temporary pump at Romero Reservoir.

A motion was made by Director Campbell, seconded by Director Abel and unanimously carried to ratify the June 30, 1997 transfer of $100,000 and $1,300,000 from the District’s LAIF/General Capital Repair & Replacement/Operations fund account to the District’s Montecito Bank and Trust operational account.

The Board reviewed the monthly report on the distribution system and fire flow upgrade program.

Director Wilson reported on the July 4th festivities planned by the Association. Director Abel asked if the District participated in this event. The Business Manager stated that the District provides the personnel, cones and street signs to close off the streets during the July 4th parade, and permitted a billing insert to accompany the recent District water bills. Director Wilson requested that Director Campbell attend the next Association meeting to report on the annual water sales and the water distribution upgrade program along with the Water Availability Charge.

President Muller opened the Public Hearing at 3:15 p.m. regarding the capital cost recovery and connection fees. The General Manager presented a letter from Sally Kinsell asking the District what the long term and short term plans were to pay for state water, the pipeline replacement program and water from other sources. Staff was asked to send her a letter inviting her to come in and review the 10 year and 30 year plan, and to send her a copy of the board memorandum in the packet explaining this. With no protests or public present, the Public Hearing was closed by the Board President at 3:20 p.m.

Director Campbell moved to approve Resolution No. 1837 adopting water service related capital cost recovery fees and a formula for annually determining both the capital cost recovery and connection fees. It was seconded by Director Abel. The motion carried with a roll call vote as follows:

The Board reviewed the analysis of the cost of District water service. The Business Manager explained that the rates were tied directly to the budget. She explained the reasoning for the allocation of charges to the various category of uses. Director Puddicombe moved to accept the analysis of the cost of District water service. It was seconded by Director Campbell. The motion carried unanimously.

Director Campbell made a motion to approve Resolution No. 1838 implementing the employee classification and salary range schedule for the 1997-98 fiscal year. It was seconded by Director Puddicombe. The motion carried with a roll call vote as follows:

Director Puddicombe made a motion to approve Resolution No. 1839 concerning the levying of taxes for the 1997-98 fiscal year. It was seconded by Director Abel. The motion carried with a roll call vote as follows:

Director Campbell made a motion to approve Resolution No. 1840 determining that charges, rates and fees are not "proceeds of taxes". It was seconded by Director Puddicombe. The motion carried unanimously with a roll call vote as follows:

The Business Manager explained that the District adopts an investment policy annually to inform the Board of the investments the District has, and to insure their safety. A motion was made by Director Campbell to adopt Resolution No. 1841, the District’s annual investment policy. It was seconded by Director Abel. The motion carried unanimously with a roll call vote as follows:

The General Manager reported that he had requested to delay the 300 acre foot transfer of water to the City of Santa Barbara to October l when the new Cachuma water entitlement is declared, due to the very high demand of use. A motion was made by Director Puddicombe, seconded by Director Campbell and unanimously carried to ratify the Operations Committee action to transfer the District’s 300 acre feet to the City of Santa Barbara on October 1, 1997.

The Engineering Manager said that the Operations Committee had reviewed the District’s comments to the USFS regarding the Fox and Alder Creeks Operations and Monitoring Plan for the USFWS. Director Abel asked if District Counsel had reviewed this letter. He said that he had not had a chance to review the comments, so it was the consensus of the Board to place this back again on the agenda at the next Board meeting after District Counsel has had a chance to make any recommendations.

President Muller asked that the Board review the COMB resolution identifying the organizations to discharge the Cachuma Contract obligations. The General Manager suggested that the CMU be added to Item 11. Director Campbell made a motion to approve the COMB resolution with a change to number eleven adding CMU. The motion was seconded by Director Puddicombe. The motion carried unanimously.

Director Puddicombe made a motion to contribute $200 to the California Urban Water Conservation Council as part of the District’s Water Conservation MOU. It was seconded by Director Abel. The motion carried 4-1, with Director Campbell opposed.

The General Manager stated that the Option Agreement with Santa Barbara Cellular Systems for a cellular antenna at the District office had been approved in concept at the last meeting. Counsel Wullbrandt said that he would like to review some changes made. A motion was made by Director Puddicombe to ratify the option agreement for Santa Barbara Cellular System to install a cellular phone antenna on the antenna at the District office, subject to Counsel’s review. It was seconded by Director Abel. The motion carried 4-1, with Director Wilson opposed.

President Muller said there was nothing new to report regarding Cachuma seismic safety work.

President Muller reported there was nothing new to report on Lompoc lawsuit against the USBR regarding the Cachuma renewal EIR/EIS.

The General Manager said that the Board Order 94-5 studies are proceeding and that the Steering Committee had met to select a Water Quality Workplan Manager. The General Manager said that it was a hydrologic expert from California.

Counsel Wullbrandt said that the State is working on the fish MOU with NMFS. He said that it appeared that NMFS will most likely list steelhead as an endangered species.

There was nothing new to report on the Lompoc lawsuit against the USBR regarding water quality damages.

Director Wilson reported on the ACWA-USA Electricity Agreement Board Meeting of June 19, 1997. He said that it was difficult for everyone concerned to come to an agreement, so they agreed to meet in two months to clarify many of the legal issues. He reported that there would not be a reduction in electrical charges for about five years.

Director Campbell reported on the Special Districts meeting of June 23, 1997. He said the entire evening was spent discussing changing all elections to occur at the same time as the federal elections. He said that terms will have to be extended rather than reduced because that is the law. He also said that costs for elections will go down for those entities which change their elections to the dates of the federal elections.

Director Puddicombe gave the CCWA report of June 26, 1997. He reported that he had been reelected Chairman.

President Muller reported that most items had already been discussed. He said that the Operations Committee had done a site visit of the Buell Reservoir property to look at the proposed lot line adjustments and to change the location of the access road.

Director Abel reported that the Public Information Committee would be meeting next week and asked for any ideas on articles for the summer newsletter. Several suggestions were the State Water Project pipeline dedication ceremonies, the pipeline replacement program, the Bradbury Dam seismic work and environmental issues on Fox and Alder Creeks.

Director Campbell gave the Ad Hoc Committee Report. Director Muller stated that if the District does restructure its debt service the Board should have a number of options to choose from. Director Campbell reported that there will be several options, such as taxable vs non-taxable bonds, length of term options, etc..

Note: The agenda was posted at the front counter and outside front wall at the Montecito Water District on June 27, 1997.