Tuesday, September 22, 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, SEPTEMBER 22, 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 Tom Mosby, Engineering Manager Evalyn Kerman, Business Manager/Assistant Secretary Chip Wullbrandt, District Counsel Cathy Muneio, Secretary Maeton Freel, U.S. Forest Service Jeanine Derby, U.S. Forest Service Ben Weiner

There were several suggested corrections to the minutes. A motion was made by Director Wilson, seconded by Director Campbell and carried 3-0-1, with Director Jones abstaining, to approve the amended minutes of September 1, 1998.

There were several suggested corrections to the minutes. A motion was made by Director Wilson, seconded by Director Campbell and carried 3-0-1, with Director Puddicombe abstaining, to approve the amended minutes of September 15, 1998.

The Board reviewed the water sales reports for August 1998. The General Manager noted that the sales were 9% below budget for July and August.

The General Manager reported that the amount of unaccounted water for the month of August was 65 acre feet. He said that the Operations Committee had met but had not had a chance to discuss this item, and that this would be discussed at the next Operations Committee meeting. He said that the Engineering Manager would be reviewing a proposal to have Sensus pull 1% of the District meters at random and test them. He was also looking into the possibility of having a company check the tightness of the District mains. Several large meters had already been replaced to ensure proper recording.

A motion was made by Director Campbell, seconded by Director Abel and unanimously carried to approve the bills for payment, excluding the payment to the U.S. Forest Service, since this would be approved later in the agenda.

A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to ratify the September 18, 1998 transfer of $200,000 from the District’s Santa Barbara Bank and Trust operational account to the District LAIF/General Capital Repair and Replacement/Operations fund account.

Director Wilson said there was nothing new to report regarding the Montecito Association.

President Puddicombe welcomed Ms. Derby and Mr. Freel from the U.S. Forest Service. The General Manager stated that a final report had been received for 1997 which was included in the Board packet. He said that it had been sent to ENTRIX for review, and that it was a good report. President Puddicombe said that the Operations Committee had considered this item and recommended acceptance of the report and payment of the remaining money owed. A motion was made by Director Campbell, seconded by Director Abel and unanimously carried to accept the 1997 final report on the Challenge Cost-Share Project, approve payment of $13,650 to pay the remaining final District costs for the 1997 Challenge Cost-Share Agreement, and appropriate $13,650 for this work, plus $1,000 for the cost of review of the final report by Jean Baldrige, for a total of $14,650, from the District’s General Capital Repair and Replacement Fund.

The General Manager requested that the 1998 Challenge Cost-Share Agreement be continued to the next meeting. He stated that since it was so late in 1998, with additional work needed in part of 1999, the 1999 work may be added to the 1998 Challenge Cost-Share Agreement. He said that the Operations Committee would come back to the Board with a recommendation at the next meeting. Director Wilson asked about predator removal. Maeton Freel explained that bullfrogs were endangering the arroyo toad and red-legged frogs, among many other things, and that in order to have a better chance for these endangered species to survive the bullfrogs needed to be removed.

Ben Wiener, attorney representing the homeowners around the Pacifica Institute, was present to discuss the homeowners concerns regarding the institute’s septic waste disposal and possible groundwater contamination. The General Manager explained that studies had been recently completed, and that this was brought before the Regional Water Quality Control Board in September. He said that no conclusion had been reached and the matter was referred to the RWQCB staff to review the reports and for return to the Board itself. Mr. Wiener requested that the Montecito Water District Board take immediate action to protect the public’s water supply. Mr. Wiener and District Counsel concurred that the first jurisdiction was with the Regional Water Quality Control Board. Director Abel asked about testing the Edgewood Wells which were located near the Pacifica Institute property. The Engineering Manager said that tests had been completed previously and that the TDS concentration was above the allowed levels by the state, but he stated he would do additional testing. He also stated that no water from this well was being added to the Montecito Water District water supply at this time.

The General Manager reported that the Operations Committee had reviewed the CCWA delivery schedule and Table A Reduction, and that CCWA needed to have this information back that afternoon. The General Manager reported that the reservoirs were full and so the District order for State Water was small, and that any Table A reduction would have to be for two years, and he did not think that there was significant enough savings to do so. A motion was made by Director Abel, seconded by Director Wilson and unanimously carried to approve the 1999 State Water order of 150 acre feet, the projected 2000-2003 water order schedule, and the projection that the remainder of the District’s entitlement is available for submission to the Central Coast Water Authority for temporary sale, and to approve no 1999-2000 Table A reduction.

NOTICE OF VIOLATION AND RESPONSE REGARDING SOUTH COAST
CONDUIT CONNECTION NEAR LAURO RESERVOIR

The Board discussed the notice of violation and the response from COMB regarding the South Coast Conduit cross connection near Lauro Reservoir. President Puddicombe said that there was a problem with this connection since completion of the Cater enlargement in 1982, when the cross connection was installed. A motion was made by Director Wilson, seconded by Director Puddicombe, and unanimously carried to ratify the response regarding the South Coast Conduit cross connection near Lauro Reservoir.

A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to approve a contribution of $143.00 for the Sustainable Landscape Fair.

The Engineering Manager stated that the San Ysidro Ranch had extended a water main from the highline for fire protection purposes. This being a District main an easement has also been granted by the San Ysidro Ranch to the District. A motion was made by Director Abel, seconded by Director Puddicombe, and unanimously carried to approve a Grant of Easement from San Ysidro Ranch Investors, Limited Partnership.

A claim was made by Peter Munding-Becker for damage to his vehicle during an accident with a District employee. The General Manager reviewed with the Board the staff memo. A motion was made by Director Campbell, seconded by Director Abel, and unanimously carried to reject this claim on its merit.

A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to authorize the write off of accounts totaling $154.31.

A motion was made by Director Campbell, seconded by Director Abel and unanimously carried for the District to participate in Montecito Beautification Day by reserving half a table, and to ratify approving a billing insert for notification of this day.

The General Manager said the polished bronze fire hydrant that was located on the corner of East Valley and San Ysidro had been refurbished. The General Manager asked the Board whether they would like to reinstall this hydrant back in the same spot. It was the consensus of the Board to reinstall the polished fire hydrant at the Corner Green.

The Engineering Manager reported that John Howard, the District’s SCADA consultant, had asked the District to participate in a demonstration program regarding electrical power monitoring and analysis. He said that the timing of this request corresponds with the deregulation of the electrical industry and will prepare the District for the future. He said this would come back to the Operations Committee with a cost and a recommendation on whether to proceed with this would be made. A motion was made by Director Wilson, seconded by Director Campbell and unanimously carried to approve in concept entering into an agreement with John Howard for the installation and operation of the KWERY electrical power real time monitoring and data acquisition system subject to acceptable Edison meter modification charges in order to intertie the Edison meter to the KWERY hardware.

Director Campbell reported on the LAFCO meeting of September 2, 1998. He stated that the sphere of influence for the Goleta Water District was moving more westerly toward El Capitan. The Board discussed the use of the Glen Annie Reservoir. President Puddicombe requested that this be added to the next Operations Committee agenda.

The Engineering Manager reported on the September 12, 1998 water main break on Sycamore Canyon at Barker Pass Road. This break occurred at about 3:00 PM in the afternoon and resulted in a water outage to several hundred customers. The blow out occurred just east of Barker Pass Road. This area has been subject to multiple breaks in the past. In addition to the break of the water main, the Barker Pass pump station 125 horsepower electrical motor burned up. The repair of the water main was completed by 11:30 PM, Saturday. The electric motor was taken to Oxnard for immediate rewinding. This pump is critical for providing water to Terminal Reservoir. The motor was reinstalled by 1:30, Monday afternoon The General Manager thanked staff for working so quickly to take care of the problem.

The General Manager reported on the status of the Buell Dam site sale. He reported that the District had just received approval from the County geologist regarding building site testing on top of the dam. The General Manager requested that additional funds be appropriated for costs incurred during the planning process. The Engineering Manager reported that there were additional costs for dry well development when it was decided to split this parcel into four lots. He reported that he had talked to the County Planner and that she had told the District to make a full submittal for approval in mid-October. A motion was made by Director Campbell, seconded by Director Wilson and unanimously carried to appropriate $35,000 from the District’s Capital Repair and Replacement fund for continuing work associated with the sale of this property.

The Engineering Manager reported on the Picay Hydroelectric Plant breakdown. It was estimated that there was a projected $25,000 loss of income during the breakdown and that repair costs are expected to cost between $12,000 and $15,000. These costs will be paid by John Howard, the plant owner.

The Board reviewed the list of 1998-99 Water Availability projects. No comments were made by the Board.

Director Campbell said that once the Finance Committee receives the actual water sales figures for September this will give the Finance Committee better information to estimate sales for the year. There is concern that the District is not meeting its projected sales. He said the committee will make a recommendation at the October 6th Board meeting. There was a discussion on rates being raised for all classes of use except commercial. It was noted that this District is the only District that has a special rate for schools. It was also noted that there is a large difference between commercial and domestic rates. The Finance Committee will be reviewing the rates and fees and be prepared to discuss the amounts of the proposed January 1, 1999 water rates and service charge increases.

Director Abel thanked the Directors that would be attending the Region 5 & 7 seminar in Bakersfield on September 27, 1998.

Director Abel requested that a report on the last CCRB and COMB meetings be added to the next agenda.

Note: The agenda for this meeting was posted at the front counter and
on the front wall at the Montecito Water District on September 18, 1998.