MINUTES - TUESDAY, SEPTEMBER 16, 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, SEPTEMBER 16, 1997

Present:	Directors Abel, Campbell, Muller and Wilson
Absent:	Director Puddicombe
Also Present:	C. Charles Evans, General Manager/Secretary (arrived at 4:30 p.m.) Chip Wullbrandt, District Counsel Evalyn Kerman, Assistant Secretary Cathy Muneio, Secretary Pat Yochum, Penfield & Smith

Several suggested changes were made to the minutes. A motion was made by Director Campbell, seconded by Director Campbell and unanimously carried to approve the amended minutes of September 2, 1997.

The Water Production report for the month of August was discussed by the Board. The Board also discussed the high unprecedented water usage that had lowered the water levels at the Bella Vista Reservoir and had made pumping of water to customers on Bella Vista Drive impossible. The Business Manager explained that the Board had provided bottled water and showers at the YMCA to these customers. The Engineering Manager explained that the problem will end with cooler weather and eliminated in the future when new pumping facilities are installed.

A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to approve the bills for payment for August 1997

Director Wilson reported that the County Traffic Engineer and California Highway Patrol had proposed an increase to the speed limit on Sheffield Road from 35 mph to 40 mph, but had changed that proposal.

A motion was made by Director Wilson, seconded by Director Abel and unanimously carried to authorize the write off of accounts totaling $357.02.

The Business Manager explained that Ordinance No. 81 had already been approved in concept regarding the termination of the District water shortage emergency. A motion was made by Director Campbell, seconded by Director Abel and unanimously carried to approve the scheduling of a public hearing on October 7, 1997 to consider the termination of the District water shortage emergency along with the proper noticing, and to authorize the preparation of a summary of the Ordinance to be published in the News-Press for public information.

The Board discussed the SWP annual water order and four year projection and possible Table A entitlement reduction. Director Wilson inquired about whether the State Water order was in accordance with the District’s Ten Year Financial Plan. The Business Manager explained that the District’s Ten Year Financial Plan had a different allocation of water sources which was more conservative, but in total the water sources that were the same. There was a discussion on what the cost of State Water would be if it was ordered and what it would be if it was turned back the DWR. A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to approved the 1998 state water order of 550 acre-feet, the projected 1999-2002 water order schedule, and the projection that the remainder of the District’s entitlement is available for temporary sale for submission to the Central Coast Water Authority and to approve no 1998-1999 Table A reduction.

COST SHARING AND LEGAL REPRESENTATION
REGARDING MOUNTAIN DRIVE AREA PUMP STATION

The Board discussed the cost sharing agreement between the Montecito Water District and the Burden Trust. An issue in the agreement was raised by the Burden Trust representative, Pat Yochum, regarding the sharing of any cost savings below the construction estimate of $330,000. Counsel stated that the General Manager did not believe it was appropriate to share with the developer any possible cost savings associated with this project because the District was contributing a great deal to this project. Pat Yochum pleaded his case and indicated that this issue would not be a deal breaker; however, due to the cooperative nature of this venture, he was requesting that the Water District consider sharing any possible savings in the event competitive bids were less than the engineering estimate. After some discussion by the Board of other developer financed projects, it was decided that this was a unique situation. A motion was made by Director Campbell to propose an amendment to the agreement that would establish that, if there are cost savings under the $330,000 estimate, the District would retain the first $10,000 savings for administrative costs and any savings greater than $10,000 would be considered by the Board for some reimbursement to the Burden Trust. Director Wilson seconded the motion. The motion carried unanimously. Director Abel moved to accept execution of the letter acknowledging the legal representation of Price, Postel and Parma for both the District and the Burden Trust. It was seconded by Director Campbell. The motion carried 3-1 with Director Wilson opposed.

The Board reviewed the 1997-98 proposed Water Availability Charge Project schedule and funding. Director Campbell made a motion to

President Muller continued the 1997-98 Budget review and analysis of the possible debt restructuring until the next meeting when the full Board and the General Manager would be present.

LETTER FROM LEMIEUX AND O’NEILL REGARDING RETROACTIVE INTEREST ON SAFE DRINKING WATER BOND LOAN.

The Board discussed a proposed legislative amendment which would provide funds to repay interest that was overcharged to districts who paid off their state treatment loans. Director Campbell said that the District should contact ACWA for the appropriate language and if a letter were sent to ACWA it could be discussed at its next legislative seminar. Director Abel made a motion to approve sending letters to state representatives outlined in the letter from Denise Brogna at Lemieux and O’Neil dated 8/5/97. Director Campbell seconded the motion. The motion carried unanimously.

Counsel Wullbrandt reported on the court order dismissing the Lompoc lawsuit regarding the Cachuma renewal EIR/EIS. It was expected that this may be appealed but before a decision would be received it would be the year 2000 when the State Board Order 94-5 studies would be completed and the hearing held.

Director Muller reported that 70% of the Cachuma seismic work had been completed and there were no change orders at this time. He reported also that Dr. Castro was going to complete the foundation soils testing to determine whether his estimated soil strengths were correct.

Director Abel reported that there was nothing new to report on the status of the SWRCB Board Order 94-5 studies, but that there was a report on the studies included in the Board packet.

Director Abel said that a report on fishery matters other than the 94-5 studies was included in the Board packet.

Director Campbell reported on the LAFCO meeting of September 4, 1997. He said that simple annexations and the Torekson bill for special districts to share in the costs of LAFCO were approved if special districts and cities get a say in the LAFCO budget.

There was no comment from Director Wilson regarding the ACWA-USA meeting of September 11, 1997.

Director Muller reported that the Operations Committee report had been discussed under other items.

The Public Information Committee had not yet met so there was nothing new to report. Director Muller asked that the Public Information Committee consider addressing the issue of water delivery problems in the community.