Tuesday, March 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, MARCH 17, 1998

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

Present:	Directors Abel, Campbell (arrived at 3:05 p.m.),Jones, Puddicombe,Wilson
Absent:	None
Also Present:	C. Charles Evans, General Manager/Secretary David Van Horne, District Counsel Tom Mosby, Engineering Manager Evalyn Kerman, Business Manager Cathy Muneio, Secretary

A motion was made by Director Wilson to approve Resolution No. 1853 adding a closed session item to the agenda to discuss potential litigation regarding the retroactive interest paid on the State Cater Loan. The motion was seconded by Director Abel. A roll call resulted as follows:

The Board went into closed session at 3:02 p.m. Director Campbell arrived. When the Board returned to open session at 4:07 p.m., the Board indicated that it had given instructions to its real estate negotiator and District Counsel regarding the sale of the Buell Reservoir property. The Board also indicated that it had rejected the offer by the Attorney General for $39,431.28 for retroactive interest charged on the DWR Cater loan, and recommended a counter offer for the amount of the original retroactive interest without adding additional interest.

Director Jones expressed concern that the corrections for the approved minutes for the prior month were not shown in the current minutes. President Puddicombe suggested that he could come to the District office to read the amended minutes if he wished. A suggested change was made to the minutes. Director Campbell made a motion to approve the amended minutes of February 17, 1998. It was seconded by Director Puddicombe. The motion carried 4-0-1 with Director Abel abstaining because she was not present at the meeting.

The Board reviewed the water sales reports for February. Director Wilson expressed interest in having the sales charts based on dollars and acre feet of water.

The Board reviewed the water works operations report for February. The Engineering Manager reported that he had completed an analysis of monthly water versus metered use difference. He said that the data is representative of a reduction in meter accuracy experienced during low production flow and customer demand period. He indicated that it is not known if the lower accuracy and correlation is attributed to production or customer meters. He stated that the meter chamber and register on the South Portal 8" propeller meter is being replaced and that the existing chamber and register are being re-calibrated. He reported that calibration of the South Coast Conduit meters is outside the District’s responsibility and it is not known whether these meters read less than the accepted meter accuracy range. The General Manager stated that a study had been completed that shows meters were 96% accurate up until 18 years, so the District and the City of Santa Barbara follows these guidelines. He also indicated that some properties may have larger meters than they should, so they may not be recording accurately.

A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to ratify the March 12, 1998 transfer of $200,000 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 bills for payment for the month of February. A motion was made by Director Campbell, seconded by Director Puddicombe and unanimously carried to approve the bills for payment for the month of February.

Director Wilson gave the Montecito Association report. He said that there had been a meeting of homeowners’ associations and the Montecito Association and that there was a consensus among the groups on the roles of the homeowners’ groups and the Association.

The Engineering Manager reviewed the Storm ‘98 emergency repair work that was necessary. These damages have been submitted to FEMA for reimbursement. He reported that there was serious damage to the Summerland community where a slide on Greenwell Avenue had occurred and that 800 feet of pipe needed relocating. He said that this needed to be completed before the high demand season since this water main is the primary source of water to the Summerland area. He also reported that 200 feet of 14" transmission waterline at Doulton Tunnel Road needed to be relocated from the edge of the slope to inside the toe of the slope and that the Doulton Tunnel Road had also been cleared and graded. He said that a great deal of access road repair work had been done at Jameson Lake.

The Engineering Manager reviewed with the Board the request to relocate the Valley Club Road well since the present well facilities and easements over the property constrain the development of this property. He said that District staff believes that the relocation of this well can be completed without altering or changing the current yield and capacity of the existing well, and that the District will oversee and approve the well design and construction. The owner of this property is also requesting the permanent abandonment and destruction of the existing non-production monitoring well on the property. This proposal was reviewed and approved by the Operations Committee on March 11, 1998. A motion was made by Director Campbell, seconded by Director Abel and unanimously carried to approve the relocation of the District’s Valley Club Well at 501 Valley Club road to a new location on the property subject to: 1) The proposed new well shall be equal to or greater in short and long term yield than the existing potable water production well. All production testing and yield determination shall be performed by a California registered hydrologist and summarized in a report prepared by the hydrologist. 2) All well construction shall be in accordance with the Montecito Water District and the State of California well construction standards. Where a conflict between the District and State standard exists, State standards shall prevail. 3) Proposed new production well pump, piping and appurtenant equipment shall be constructed to be equivalent or better than the existing well facility. 4) Owner of property at 501 Valley Club Road agrees to pay for all costs including engineering, surveying and legal fees incurred in the relocation of the Valley Club Well and the abandonment, destruction and removal of existing District facilities and also agrees not to disturb or remove existing District facilities and easements on the property until written permission is given to the owner by the District. 5) The new relocated well and facility shall provide sufficient easement area for the construction of a future treatment system to meet changes in water quality requirements mandated by the EPA and/or the State of California. Owner and owner’s architect shall ensure that the construction of a future building on the lot will meet current zoning requirements. The owner may wish to include future well building design to conform with the owner’s proposed development of property.

The Board discussed the request by Cathy Atkinson to construct improvements at the Bella Vista Treatment Plant property. This item was reviewed and approved by the Operations Committee on March 11, 1998. A motion was made by Director Campbell, seconded by Director Abel and unanimously carried to permit the construction of the cut stone wall and arch gateway on the District property by Cathy Atkinson subject to: 1) Approval of the proposed improvements by the utility companies serving the District’s property. 2) Issuance of a letter from the District indicating that the encroachments are not to be granted in perpetuity and will be subject to removal by Ms. Atkinson in the event of conflict with future improvements by District on District land. 3) All permitted improvements shall be reviewed and approved by the District prior to the start of work and maintained by Ms. Atkinson or successors to the property. 4) Execution of a landscape/hardscape agreement between the District and Ms. Atkinson. 5) Ms. Atkinson shall be responsible for all direct and indirect District costs, including engineering and legal, in the preparation of the agreement and the construction of improvements on District property.

REQUEST BY MONTECITO FIRE DISTRICT TO USE
TERMINAL RESERVOIR FOR TEMPORARY BIOMASS STORAGE

The Montecito Fire District requested use of the District’s Terminal Reservoir property as a temporary fire hazard materials drop off site. This item was reviewed and approved by the Operations Committee on March 11, 1998. The Board expressed their concerns about the hazards involved in this. After discussion a motion was made by Director Wilson, seconded by Director Abel and carried 4-1, with Director Campbell abstaining, to grant permission to the Montecito Fire Protection District for use of the District’s Terminal Reservoir property for the temporary storage and chipping of vegetation and shrubs cleared from community hillsides for its ongoing fire prevention program subject to: 1) Permission for the use of District property as a fire hazard drop off location shall be limited to one day only to determine the impact of this type of activity on District property. 2) Fire District personnel shall inspect and supervise unloading of materials on District property. Fire District shall be fully responsible for all materials dropped off at site and for the immediate removal of any materials left onsite that pose health and safety concerns to the District’s property, potable water reservoir or the environment. 3) All materials dropped off onsite will be properly chipped and spread over the District’s property in such a way as not to restrict or alter the use or access of the property. 4) All activities in the chipping, spreading, removal or burning of debris shall be performed so as not to cause a nuisance. 5) Water District shall oversee all activities on District property and have the right to cancel this activity at any time there is a threat or restriction in its use of the property as determined by the District.

The Board reviewed the letter from the Santa Barbara County Flood Control & Water Conservation and Water Agency on its decision to terminate the cloud seeding program at this time because of this year’s heavy rainfall.

The Board reviewed the preliminary financing schedule for the Long Term Capital Program. Director Campbell suggested that the District request proposals from four financial firms regarding the District financing bonds. A motion was made by Director Campbell, seconded by Director Puddicombe and unanimously carried to approve the preliminary financing schedule and obtain proposals to evaluate bond financing costs.

The General Manager reported that the principal contract for the seismic safety work was nearly complete and that the second contract has been let for the spillway strengthening. It was noted that Chip Wullbrandt is special COMB counsel for repayment of the Cachuma Member Units share of the costs of the seismic work and for the completion of the Cachuma Operations and Maintenance contract renewal.

Director Abel said there was nothing to report since CCRB would be meeting the following day, March 18, 1998.

President Puddicombe had nothing to report regarding the Central Coast Water Authority meeting of February 26, 1998. Board members had previously been provided a copy of the CCWA newsletter regarding the meeting.

Director Jones gave the COMB report for the meetings of March 2 and 16. He said that property owned by the City of Santa Barbara was being reviewed for a possible COMB office building. The General Manager reported that a letter had been sent to COMB stating that the District could not support a new building on USBR property until the matter of the possible future buy back from USBR was resolved and other alternatives to the building site had been addressed.

Director Abel briefed the Board on the ACWA Annual DC conference held March 1-4, 1998. She said that they had meetings with both Senators and their representatives to discuss ACWA’s positions on different issues. She said that they had also met with Congresspersons from California.

Director Campbell said that the LAFCO meeting of March 5, 1998 had been canceled.

President Puddicombe said that all items discussed at the Operations Committee meeting had already been discussed under other items on the agenda.

Director Campbell reported on the cash flow statement through February 1998. He said that the new service rates were not included in the projections and that the District still projected a positive $300,000 cash flow. He also said that District legal fees were much lower and he thanked staff for consistently reviewing these. Director Campbell also said that the committee had discussed whether there should be another public hearing on the Long Term Capital Plan. The Committee recommended to not have another hearing but possibly talk to the Montecito Association about being available at one of its meetings to answer any questions regarding the program.

Director Abel passed out news articles and various water issue articles for the Board to read. She reported that the newsletter would be delivered to District customers in mid April.

The General Manager said that the County asked to use the District Board room for the election the first Tuesday in June. President Puddicombe asked that this matter be placed on the next Board agenda.

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