Tuesday, February 3, 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 3, 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 Chip Wullbrandt, District Counsel Evalyn Kerman, Business Manager Cathy Muneio, Secretary Dave Houston, Smith Barney Wynn Richards, Smith Barney

A correction was made to the minutes. Director Campbell made a motion to approve the amended minutes of January 20, 1998. It was seconded by Director Abel. The motion carried unanimously.

The General Manager explained that the water production report had not yet been completed due to the District’s participation in working with MERRAG to help with storm related problems, and said that it would be faxed to the directors when completed. He explained that Juncal Dam was nearly full and that Bradbury Dam was now spilling.

A motion was made by Director Campbell, seconded by Director Wilson, and unanimously carried to ratify the January 28, 1998 transfer of $160,000 from the District’s Montecito Bank & Trust operational account to the District’s LAIF/General Capital Repair & Replacement/Operations fund account.

The Board reviewed the monthly report on the distribution system and fire flow program and water availability charge fund.

There were no comments made by the public during the time allotted to public forum.

The General Manager discussed with the Board the possibility of returning to one Board meeting per month instead of the current two meetings per month. He explained that there was not as much business to discuss as in the past during the water moratorium period. Director Abel expressed that she thought two Board meetings per month were necessary while the Board is considering the long range plan and changes in fees and charges. Director Campbell expressed a desire to hold evening meetings. After a discussion on the possible number of and times of meeting to be held Director Campbell made a motion to meet on the first and third Tuesday of every month until it is changed at a future date. The motion was seconded by Director Abel. The motion carried unanimously.

ADOPTION OF NEGATIVE DECLARATION RELATIVE
TO CONSTRUCTION OF ROMERO RESERVOIR PUMP STATION

The President opened the public hearing at 4:20 p.m. to discuss any comments from the public relative to the construction of the Romero Reservoir pump station. The Engineering Manager explained that the District had filed and advertised a Notice of Intent to Adopt a Negative Declaration for this project. There were no public comments heard from the public and the hearing was closed at 4:21 p.m. Director Wilson made a motion to adopt the Negative Declaration for the District’s proposed Romero Reservoir pump station project and approve the Pump Station project with the refinements as described in the document. The motion was seconded by Director Puddicombe. The motion carried unanimously.

The Engineering Manager explained the current status of the diversion repair work at Alder Creek and the unintentional release of sediment to Alder Creek from the catch basin. He said that the District and the U.S. Forest Service have determined that the release did not result in any negative impact to the environment.

The items regarding termination of water service due to failure to test a backflow device at 2725 Macadamia Lane was continued since the owner had not confirmed receipt of this notice.

DISCUSSION OF LONG RANGE PLAN AND SCHEDULING PUBLIC
HEARING REGARDING CAPITAL PLAN AND DISTRICT RATES AND FEES

The General Manager presented the proposed scheduling of the public hearing. Dave Houston, of Smith Barney, presented four scenarios of proposed financing for the District’s 30 Year Capital Program and answered questions from the Board. The General Manager made a recommendation to use Projection 7A or 9 for the revised 30 Year Plan. Director Abel asked for the Finance and Ad Hoc Committees recommendations. Director Abel moved to discontinue consideration of Scenarios 7 & 8 and retain consideration of Scenarios 0 and 7A. The motion was seconded by President Puddicombe. The motion carried unanimously. There was a consensus among the Board that all Directors preferred Scenario 7A. Director Wilson moved not to eliminate the two tier water rates. Director Campbell seconded the motion. The motion failed 1-4 with Directors Abel, Campbell, Jones and Puddicombe opposed. The Board then directed staff to prepare a report that approves Scenario 7a and to eliminate the two tiers. Counsel Wullbrandt said that the District needs to have the requested staff reports at least 10 days prior to February 24. Director Campbell moved to adopt a long-term District finance plan and the accompanying capital program, to eliminate the multi-tier pricing for domestic accounts and to eliminate the domestic multi-unit rate. It was seconded by Director Wilson. The motion carried unanimously.

A motion was made by President Puddicombe, seconded by Director Wilson and unanimously carried to approve Director Abel to attend the ACWA DC Conference and Director Campbell to attend the Water Law Seminar.

A motion was made by Director Wilson, seconded by Director Puddicombe and unanimously carried to approve the Santa Barbara Water Purveyors Agency budget for 1998-99.

The Board went into closed session at 6:25 p.m. to discuss the sale of property with the real estate negotiator. When the Board returned to open session at 6:30 p.m. it was announced that the Board approved accepting offers on the proposed sale of Buell Reservoir property by 5:00 p.m. on February 23, 1998, and to confer any offers at the February 24, 1998 special Board meeting.

Note: The agenda for this meeting was posted at the front counter and outside front wall at the Montecito Water District on January 30, 1998.