Tuesday, March 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, MARCH 3, 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 David Van Horne, District Counsel Evalyn Kerman, Business Manager Cathy Muneio, Secretary David Houston, Smith Barney

Several corrections were made to the minutes. Director Campbell made a motion to approve the amended minutes of February 17, 1998. It was seconded by Director Wilson. The motion carried unanimously. The General Manager explained the revisions to the minutes of February 24. A revision adding comments from Jim Langhorne of the Montecito Fire District was presented to the Board. A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to approve the revised minutes of February 24, 1998. The General Manager indicated that the resolution numbers 1849 regarding the District long range plan and financing and District rates and fees and is in fact 1851. A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to approve the revised minutes of February 26, 1998.

The General Manager indicated that the water production for the month of February was 170 a/f. He said that the difference between the sales and production numbers had not yet been evaluated and that it would be soon and reported to the Board.

A motion was made by Director Wilson, seconded by Director Puddicombe and unanimously carried to ratify the March 3, 1998 transfer of $100,000 from the District’s Montecito Bank & Trust operational account to the District’s LAIF/General Capital Repair & Replacement/Operations account.

The Board reviewed the report on the distribution system and fire flow upgrade program.

Director Wilson said that the Montecito Association had not yet met so there was nothing new to report.

Robert Wignot, General Manager of COMB, gave a presentation on the new proposed COMB office building. The Board discussed its concerns about building on USBR property and having to buy it back in the future if the member units acquire the project facilities, and that other alternatives for an office site had not been explored. A motion was made by Director Campbell, seconded by Director Wilson, and unanimously carried to instruct the District’s COMB representative to not support the proposal to construct a new COMB office building on the USBR property until other possible alternatives have been investigated, and until the question of having to dedicate the building to the USBR and having to buy it back in the future if the member units acquire the project facilities is resolved.

The Board went into closed session at 4:45 p.m. When it went back into open session at 6:15 p.m. it was announced that the District would counteroffer all ten offers that had been presented.

Note: The agenda for this meeting was posted at the front counter and outside front wall at the Montecito Water District on February 27, 1998.