MINUTES - TUESDAY, JULY 15, 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 15, 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 Cathy Muneio, Secretary R. D. Valent Neil Manning Pat Yochum John Thorndike

A motion was made by Director Puddicombe, seconded by Director Wilson and unanimously carried to approve the minutes of June 30, 1997. There was one suggested change to the minutes of July 1, 1997. A motion was made by Director Puddicombe, seconded by Director Wilson and unanimously carried to approve the amended minutes of July 1, 1997.

Director Abel reported that the Appeals Committee had met and discussed with Mr. Irving Lebow his appeal for an exception to the 1" meter requirement in order to be considered an agricultural account. Director Abel said that Mr. Lebow’s property currently has a 5/8" meter and contains a 5,000 gallon water storage tank. An engineering study showed this to be sufficient for his request to plant two acres of crop and to furnish water service to the residence. Jerry Paley was asked to explain how the District determines that a customer is staying within the agricultural policy guidelines. He said the agriculture customers are sent a questionnaire annually and asked to provide the District with proof that crops are grown for sale. A motion was made by Director Abel, seconded by Director Wilson and unanimously carried to ratify the Appeal Committee’s recommendation for an exception to the 1" meter requirement for an agricultural designation based on the purchase of a sufficient number of trees and future documentation that the crops are grown for commercial purposes.

President Muller opened a public hearing to hear protests regarding the Vista Annexation. The General Manager explained that the Vista Annexation had been approved by LAFCO, but since a written protest letter had been submitted by Mr. Thorndike, it was necessary for the District to hold a public hearing. Mr. Thorndike presented his protest letter and said that he was concerned about his property lines being incorrect. Counsel Wullbrandt said that was not an issue because the entire perimeter of the Vista property was being annexed to the District and would not affect his property’s lines. When Mr. Thorndike realized that his water rights would remain with his property, he withdrew his protest. President Muller then closed the public hearing.

Director Puddicombe made a motion to adopt Resolution No. 1842 approving the Vista Annexation of APNs 155-020-10, 12, 14 and 15 to the Montecito Water District. It was seconded by Director Abel. The motion carried with a roll call vote as follows:

The General Manager reported that production was 579 acre feet and that sales were 535 acre feet for June.

A motion was made by Director Campbell, seconded by Director Puddicombe and unanimously carried to ratify the July 11, 1997 transfer of $150,000 from the District’s Montecito Bank and Trust operational account to the District’s LAIF/General Capital Repair & Replacement/Operations fund account.

A motion was made by Director Puddicombe, seconded by Director Campbell and unanimously carried to approve the bills for June.

Director Wilson reported on the Montecito Association meeting. He reported that there was discussion that the County is researching providing electrical service to the public. He then talked to them about the District possibly providing electrical service to the public through ACWA-USA. Counsel Wullbrandt said that the District may have latent powers to provide this service. Director Wilson said that he may make a recommendation to the Board in the future.

Pat Yochum of Penfield and Smith presented his recommendations to the District to maximize the best potential for building sites on the Buell Reservoir property. Director Puddicombe made a motion to approve the proposed lot line adjustment/lot split tentative map of the District’s Buell Reservoir property as prepared by Penfield and Smith and to authorize the submittal of the proposed lot line adjustment/lot split to the County of Santa Barbara Planning and Development Department for processing and approval subject to review of the District’s ingress and egress rights. The motion was seconded by Director Abel. The motion carried unanimously.

Director Puddicombe made a motion to approve Resolution No. 1843 nominating Director Abel as Chair of the Association of California Water Agencies Region 5. The motion was seconded by Director Campbell. The motion carried with a roll call vote as follows.

The Board discussed the judge’s favorable decision regarding the Solvang lawsuit.

A motion was made by Director Puddicombe, seconded by Director Abel and unanimously carried to approve the comments by the District to the U.S.F.S. regarding the Fox and Alder Creeks Operational and Monitoring Plan.

A motion was made by Director Puddicombe, seconded by Director Campbell and unanimously carried to approve granting a 24 foot access road easement across the District’s Yaggy property to the Shade Ranch for $1,200.

RESOLUTION. NO. 1844 OPPOSING PECG’s GOVERNMENT COST SAVINGS
AND TAXPAYERS PROTECTION AMENDMENT

Director Puddicombe made a motion to approve Resolution No. 1844 opposing PECG’s so-called "Government Cost Savings and Taxpayers Protection Amendment." It was seconded by Director Muller. A roll call vote resulted as follows:

The Board discussed the letter from Lemieux & O’Neill regarding the lawsuit with the DWR regarding the State Loan retroactive interest charged.

The Board discussed Senate Bill 712 that is being sponsored by Goleta Sanitary District which would provide for protest elections for consolidations of special districts by LAFCO’s. President Muller said that he feels the receiving agency as well as the dissolving agency should have a right to vote on consolidating. Counsel Wullbrandt said this matter would be discussed during the ACWA Legislative Committee meeting and that he would report back to the Board its findings. The General Manager said that the California Special Districts Association and CASA along with Montecito Sanitary District and the Montecito Fire Protection District are in favor of the bill. Director Campbell said he was very much opposed to the bill because it would hamper the LAFCO in effecting needed consolidations. Director Puddicombe made a motion to table this item until the second meeting in August when Counsel Wullbrandt will have more information from the ACWA Legislative Committee. The motion carried unanimously.

Director Puddicombe made a motion to approve the letter to CCWA regarding a revised request for CCWA contingency funds to construct the Romero Reservoir pump station and a new turnout on the South Coast Conduit at Lambert Road. It was seconded by Director Campbell. The motion carried unanimously.

President Muller reported that the Cachuma seismic excavation has been completed and the placement of new material is proceeding.

There was nothing new to report on the Lompoc lawsuit against the USBR regarding the Cachuma renewal EIR/EIS.

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

Director Abel reported that the television series "Cadillac Desert" began on Tuesday, June 27th on PBS. She also reported that the Committee had met regarding the summer newsletter and will be reviewing a draft next week and that the theme will be about water supply and water costs. The front page will cover the opening of the State Water Project pipeline. Other suggested news articles that the Board made at the last meeting will be included on the inside. President Muller said that he would like to send a letter to Deidre Cannata, President of the Montecito Sanitary District, to congratulate the District on its excellent brochure for its 50th anniversary. Director Campbell asked that the District make copies of the article "What about Water," which talks about the supply of water in Southern California.

Director Campbell reported that the Ad Hoc Committee had received a formal presentation by Smith Barney and that they would be providing the District with some rationale for their recommendations to restructure the District debt service.

Director Puddicombe asked about the desalination plant. The General Manager said that the draft agreement will be the subject of a meeting with Santa Barbara and Goleta Water District in the next couple of weeks. Director Campbell said that he will have a Special Districts Association report at the next meeting.

Note: The agenda was posted at the front counter and outside front wall at the Montecito Water District on July 11, 1997.