Tuesday, February 17, 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, FEBRUARY 17, 1998

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

Present:	Directors Campbell, Jones, Puddicombe Wilson
Absent:	Abel
Also Present:	C. Charles Evans, General Manager/Secretary Chip Wullbrandt, District Counsel Evalyn Kerman, Business Manager Cathy Muneio, Secretary

A correction was made to the minutes. Director Wilson made a motion to approve the amended minutes of February 3, 1998. It was seconded by Director Jones. The motion carried unanimously.

The Board reviewed the water production report for January. Director Wilson asked if any findings had been made regarding the difference between water production and water sales. The General Manager said there had not, but that he would report on this at the next Board meeting.

The General Manager reported that sales were 159 AF, which was less than budgeted due to the amount of rain received during the month of January.

A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to approve the bills for payment for the month of January.

Director Wilson reported that the General Manager had given a report on MERRAG at the Montecito Association meeting.

The Board reviewed the mid-year budget report. Director Campbell said that he appreciated the excellent detail in the report and said that it gave a good picture of District finances. This report showed that the District had an operating gain of $604,000.

The Board reviewed the quarterly investment report which certifies that the District has the ability to meet six months cash flow.

The Board discussed the public hearing to be held on February 24, 1998 that will be held at the Montecito Fire Protection District. President Puddicombe went over the agenda for that meeting and the Directors discussed the information that they would like to present to the public. Director Campbell stated that the Water Availability Charge is still necessary because it includes undeveloped property in the District so that all properties help to pay for fire service protection. Director Campbell made a motion to approve the format for the public hearing on February 24th. The motion was seconded by Director Wilson. The motion carried unanimously.

The Board reviewed the letters to Senator O’Connell and Assemblyman Firestone regarding legislation to recover retroactive interest charged by DWR on the Safe Drinking Water Bond loan.

A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to ratify the February 13th letter to CCWA reducing from 550 acre feet to 150 acre feet the District’s 1998 State Water entitlement, and to make the remainder available for purchase in the CCWA or DWR Turnback Pool A.

A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to not take any action on nominations for the ACWA/JPIA Executive Committee.

STATE HEALTH DEPARTMENT STUDY REGARDING
WATER DISINFECTION BY-PRODUCTS HEALTH EFFECTS

The Board discussed the State Health Department study regarding water disinfection by-products health effects. The District was below the standard of 100 micrograms per liter Trihalomethanes, but the General Manager indicated that the State Health Department was considering reducing it to 80. The District recorded a concentration more than this in the San Ysidro / San Leandro area, which could be in part to the poor circulation at the sampling station in this area. He said this sampling station was being moved to a more representative area.

The Board discussed the proposed legislation to amend Fish and Game Code Section 1018 so that it would apply to the Cachuma Project. The Board authorized District Counsel to prepare a letter to Assemblyman Firestone for President Puddicombe’s signature to include the Cachuma Project in this legislation.

The Board discussed that the USBR has decided to operate Bradbury Dam for flood control this year by pre-releasing water when additional storms are expected following a request from the County Flood Control District. The General Manager explained that COMB had approved the request if a written agreement was prepared that would hold the Cachuma member units harmless, protect the yield of the Cachuma Project, and limit the modified operations to only the 1997-98 water year. He reported that COMB had authorized Chip Wullbrandt to address only the liability issue and to address other issues at a later date.

The General Manager reported that the seismic safety work berm project was almost completed with a little rock facing left to do.

The General Manager reported that the vegetation studies were almost complete. He said that the State Board may require that an EIR be prepared on the place of use issue.

President Puddicombe reported that at the CCWA meeting the Board had discussed the DWR Turnback Pool.

President Puddicombe reported that at the SBWPA meeting groundwater in Santa Barbara County had been discussed. The Board requested additional copies of the groundwater report that was received. The President also reported that they visited the Environmental Garden in Santa Maria.

Director Campbell reported that at the Special District meeting there was a presentation given on SBCAG and that County growth predictions were discussed.

Director Campbell reported that at the LAFCO meeting there were 40 parcels approved for annexation in the Santa Ynez Sewer District. They had discussed further a proposal to annex property to Lompoc. He said the next LAFCO meeting would be on 3/5/98.

The General Manager reported that COMB was in the process of looking for new Counsel. This item was continued until COMB’s next meeting at which time the process of finding new Counsel will be discussed. There was a discussion about MWD counsel doing work for COMB and that COMB does not pay for this work. The Board discussed getting together with the Executive Committee at Goleta Water District to discuss this issue. President Puddicombe said he would contact Director Blois at the Goleta Water District to set up a meeting.

Director Puddicombe said that the Operations Committee had not met so there was nothing new to report.

Director Campbell said that the Finance Committee items had already been discussed.

Director Wilson said that the Public Information Committee had not yet met so there was nothing new to report. It was noted that a Committee meeting has been scheduled for March 5 to discuss the spring newsletter which includes the annual water quality report.

Director Puddicombe said that the Water Marketing Committee had not met so there was nothing new to report.

Note: The agenda for this meeting was posted at the front counter and outside front wall at the Montecito Water District on February 13, 1998.