Monday, November 23, 1998

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, NOVEMBER 23, 1998

The meeting was called to order by President Puddicombe at 3:00 p.m.
Those in attendance were:

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

A suggested change was made to the minutes of November 4, 1998. A motion was made by Director Campbell, seconded by Director Abel and unanimously carried to approve the amended minutes of November 4, 1998.

A motion was made by Director Wilson, seconded by Director Puddicombe and unanimously carried to approve the minutes of the continued meeting of November 4 to November 6, 1998.

The General Manager reviewed with the Board the sales reports for October 1998. He noted that October was a good month for water sales and that the District was above budget for the month.

The Board reviewed the payment of bills for the month of October. A motion was made by Director Abel, seconded by Director Campbell and unanimously carried to approve the payment of bills for October 1998.

Director Wilson reported that the Montecito Association had not met and that 600 people had attended Montecito Beautification Day.

The General Manager reviewed with the Board the 1998-99 first quarter financial statement and budget report which showed a net gain of $542,000. President Puddicombe asked about the status of the Buell property sale. The General Manager said that the District is working with County staff and will be submitting a soils report to the County in the next several days. Escrow is expected to close after receiving County approval. The Board also asked about the new District telephone system purchase. The Business Manager said that this was replacement and update of the old system.

The Board reviewed the quarterly report on the District’s investment policy, which shows the District has the ability to meet the next six months cash flow.

The General Manager said that a Public Hearing was held on November 17, 1998 and comments received were included in the Board packet. He said that the questions were answered. Following consideration of the public input from the November 17, 1998 Public Hearing and, considering comments of the public, Director Campbell made a motion to adopt Resolution No. 1968 which would increase District water rates by 5%, except for the commercial rate, and an agricultural rate increase of 5.7%, and increase service charges by 15% and provide meter equivalency, and would also provide increased construction fire hydrant meter and standby private fire service charges, effective January 1, 1999. It was discussed that schools receive a special rate and that they are often used by the community for public events. The motion was seconded by Director Wilson. The resolution passed with the following roll call vote.

RESOLUTION NO. 1869 RELATIVE TO USE OF DISTRICT STATE WATER SUPPLY TO OFFSET ANY GROUNDWATER BASIN OVERDRAFT

There was a discussion regarding the adoption of Resolution No. 1869 relative to the use of District State Water to offset any District’s groundwater basin overdraft. The General Manager explained that the a Public Hearing was held on November 17, 1998 to receive public input. It was noted that the groundwater basin was not in overdraft, and thus the District’s share was zero. Considering the comments received, Director Campbell made a motion to adopt Resolution No. 1869 which is the annual report relative to use of State Water to offset any groundwater basin overdraft. The motion was seconded by Director Puddicombe. The resolution passed with the following roll call vote:

The Engineering Manager reviewed with the Board the additional capital projects necessary at Juncal Dam. He stated that no appropriation of funds is required since the projects would be funded from the 1998 A Bond funds and funds were remaining from the dam walkway project. A motion was made by Director Wilson, seconded by Director Abel and unanimously carried to approve the improvement projects at Juncal Dam totaling $12,270.

The Engineering Manager requested that the Board approve the removal and replacement of an existing District pipeline on Veloz Drive. The County will be replacing existing storm drains on Veloz Drive. The District has pipes that will need to be removed from service at the storm drain crossing prior to the County replacing the storm drains. The District will not be responsible for backfill or compaction or repaving expenses which will be borne by the County. Mr. Mosby said that some of this work will also be performed by District forces. Director Abel stated that the Operations Committee recommends this work. A motion was made by Director Abel, seconded by Director Puddicombe and unanimously carried to approve the removal of an existing District pipeline on Veloz Drive crossing two 36" CMP storm drains that are being replaced by the County with a new 7 foot deep concrete box culvert, and to replace the existing 6" CIP with new 8" DIP, at an estimated cost of $12,250.

The Engineering Manager reviewed with the Board the conceptual design review of the Ortega Reservoir piping modifications. He said that he will prepare preliminary plans and submit these plans to the Carpinteria Valley Water District, which will pay one-half the cost, and to COMB. Director Abel reported that the Operations Committee had reviewed and recommended this proposal. A motion was made by Director Abel, seconded by Director Puddicombe and unanimously carried to approve the initiation of the conceptual design for the proposed piping modifications to the Ortega Reservoir inlet / outlet structure to promote water recirculation for improved water quality and to contact Carpinteria Valley Water District and COMB regarding the proposed improvements that would be scheduled for this winter, subject to funding availability.

Jerry Paley, the District’s Computer Specialist, reported on the status of the development of the district’s web page. Director Abel said that the Public Information Committee had considered this and that this would be brought back to the Board as its progresses.

The Board reviewed the September 1998 cash flow report. The General Manager said that it shows a projected gain of $2.7 million for the year.

The Board reviewed the County water rates survey. It was noted that the survey is based on small water users and that this is really not a fair comparison. It was the consensus of the Board to request that the County use something other than 10 HCF next year.

Director Campbell reported on the California Water Law and Policy Conference of October 22-23, 1998.

Director Campbell reported that, at the LAFCO meeting of November 5, 1998, there was a final annexation of the Carpinteria and Goleta Vector Control Districts into the Santa Barbara Vector Control District. He said there was a presentation by the Santa Barbara Taxpayers Association and they requested funds to consider studying unincorporated area for cityhood. He said that action was taken to request the Executive Director to estimate the costs to complete a study and to investigate a source of possible funds.

Director Abel thanked all directors who participated in the November 7, 1998 Montecito Beautification Day.

Director Abel reported on the second meeting of the Strategic Management Plan meeting of November 10, 1998. She said that the committee had developed with Steve Mack an Issues Paper. The managers and counsels will come back with comments and recommendations regarding this Issues Paper. The next meeting is scheduled for December 9, 1998.

Director Jones reported that at the COMB meeting of November 16, 1998 it was reported that the USBR had turned down the place of use permits. There is a 30 day challenge period. He also said that a Notice of Declaration had been filed.

Director Abel reported on the CCRB meeting of November 18, 1998. She said that CCRB was discussing the possibility of changing its meetings to right before the COMB meetings in order to make it easier for Santa Ynez River ID No. 1 to attend. In order for this to work COMB would need to change their meetings from the 3rd Monday to the 4th Monday of the month. Director Abel also said that there was a recommendation to have Kate Rees promoted to Project Manager. CCRB and ID No. 1 would pay for 3/4 time and COMB would pay for 1/4 time. She stated that the Managers support this. She stated that this position would report to Steve Mack. There was also a discussion regarding the Lompoc lawsuits.

President Puddicombe reported that at the CCWA meeting of November 19, 1998 the Board had authorized an electrical survey be completed after there was a man electrocuted that was doing work at the Polonia Pass Treatment plan.

Director Abel reported that the Operations Committee had received the California Urban Water Conservation Council Conservation Plan update and that this plan is available for review if the Directors wished.

Director Abel reported that the last edition of the newsletter for the year had been sent.

Note: The agenda for this meeting was posted at the front counter and on the front wall at the Montecito Water District on November 20, 1998