Tuesday, January 6, 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, JANUARY 6, 1998

Present:	Directors Abel (arrived at 4:20 p.m. due to jury duty), Campbell, Jones, Puddicombe, Wilson
Absent:	Wilson
Also Present:	C. Charles Evans, General Manager/Secretary Chip Wullbrandt, District Counsel Tom Mosby, Engineering Manager Evalyn Kerman, Business Manager Jerry Paley, Financial Specialist

Several suggested changes were made to the minutes. Director Campbell made a motion to approve the amended minutes of December 16, 1997. It was seconded by Director Jones. The motion carried unanimously.

A motion was made by Director Campbell, seconded by Director Puddicombe and unanimously carried to ratify the January 2, 1998 transfer of $600,000 from the District’s LAIF/General Capital Repair & Replacement/Operations fund account to the District’s Montecito Bank & Trust operational account.

The Board reviewed the status of the distribution system and fire flow upgrade program as of December 31, 1997.

The Board reviewed the write offs of two accounts totaling $238.96 and discussed the possibility of collecting past due accounts from the landlords. The Business Manager said that the District received a deposit from renters and that this was the way the District protects itself from unpaid balances on closed accounts. A motion was made by Director Campbell, seconded by Director Jones and unanimously carried to write off accounts totaling $238.96 to be transferred for collection, and for the Finance Committee to discuss other possible ways of collecting the unpaid balances on closed accounts.

President Puddicombe continued the items on Director Committee and Regional Board Assignments, Director Compensation and the Revision of the Schedule for a Public Meeting until the entire Board could be present on January 20, 1998.

LETTERS TO ASSEMBLYMAN FIRESTONE & SENATOR O'CONNELL REGARDING RETROACTIVE INTEREST AND LOW INTEREST LOANS

A motion was made by Director Campbell, seconded by Director Puddicombe and unanimously carried to ratify the letter to Assemblyman Brooks Firestone, Assemblyman Fred Keeley and Senator Jack O’Connell regarding legislation to recover retroactive interest paid on the DWR loan.

A motion was made by Director Campbell, seconded by Director Jones and unanimously carried to ratify the letter to Assemblyman Firestone and Senator O’Connell regarding support of AB 1180, which would provide zero-interest and low-interest loans to public suppliers for needed improvements.

The General Manager said that the District had received an offer for the Buell property and that this was referred to the Finance Committee for a recommendation to the Board at its next meeting. The General Manager noted that in February 1997 the property was appraised at $1.175 million.

The Operations Committee had met and agreed that the application for a lot line adjustment/lot split application and notice of exemption should be submitted to the County of Santa Barbara.

Director Campbell made a motion to 1) approve the District’s application to Santa Barbara County Planning and Development Department for the lot line adjustment and lot split of the District’s Buell Reservoir property and 2) appropriate funds in the amount of $3,960 for the County application fee for the processing of the application from the General Capital Repair and Replacement Reserve Fund. The motion was seconded by Director Jones. The motion carried unanimously.

President Puddicombe stated that he had toured the Bradbury Dam repair work and that the major seismic repair project was nearly complete.

The General Manager said that the vegetative study was almost completed and that the outcome of this study showed that there was no appreciable impact on riparian vegetation from the operation of the Cachuma project. He said that the Lompoc Groundwater Quality study was scheduled to be completed in February and that no conclusions had yet been reached as to whether there was any impact on Lompoc Groundwater Basin water quality from the Cachuma Project.

Counsel Wullbrandt said that the fish MOU studies were proceeding, and that the Department of Fish and Game Sacramento office had been contacted regarding the Department’s participation in these studies.

The General Manager reported on the Cachuma Conservation Release Board meeting of December 3, 1997. He said that there was a discussion on changing the place of use for the Cachuma Project to include areas that have been annexed since the project was first started. An environmental review of this will need to be completed. The General Manager said that Kate Rees has prepared an excellent place of use report. He also said that the Fish Management Plan was in final draft form.

Counsel Wullbrandt reported that COMB was seeking new counsel. He reported that Robert Wignot was going to attend the Water User’s Conference. There was a discussion on whether or not a representative of this District should attend. It was the consensus that, with Robert Wignot and Counsel Wullbrandt attending, there would be good representation. He also said that the USBR has finally agreed that the member units do not have the "ability to pay" for seismic repairs, but that negotiations for a "willingness to pay" will have to be authorized by the Washington USBR.

Director Campbell reported on the Special District Association meeting of December 15, 1997. He said that there had been a presentation from the Isla Vista Parks and Recreation District and how the District has turned the Isla Vista community around. The General Manager mentioned that new officers had been elected at the Special Districts meeting in Sacramento and that Carey Rogers, a Director at Goleta Water District, had been elected President.

President Puddicombe said that there were no additional items to discuss regarding the Operation Committee meeting.

Director Abel reported that the latest newsletter had been sent just before Christmas.

Counsel Wullbrandt was asked by Director Campbell to report on the status of the lawsuits with Lompoc and Solvang.

Note: The agenda for this meeting was posted at the front counter and outside front wall at the Montecito Water District on January 2, 1998.