Tuesday, January 19, 1999

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 2:00 p.m. on TUESDAY, JANUARY 19, 1999

CALL TO ORDER AND ROLL CALL

The meeting was called to order by President Puddicombe at 2:10 p.m.
Those in attendance were:

Present:	Directors Abel, Campbell (arrived at 3:00 p.m.), Jones, Puddicombe, Wilson
Absent:	None
Also Present:	C. Charles Evans, General Manager/Secretary Tom Mosby, Engineering Manager Chip Wullbrandt, District Counsel Cathy Muneio, Secretary Gary Goldberg Newton Wayland Rich Schillinger Janice Yoshida Michael Cooney Bob Braitman, Executive Director LAFCO

PUBLIC FORUM

There were no comments made from the public during public forum.

RATIFICATION OF APPEALS COMMITTEE ACTION
REGARDING HAROLD ROSEN

Director Abel reported on the site visit and meeting of the Appeals Committee regarding the appeal of Mr. Rosen. Director Abel said that Mr. Rosen was concerned about assurance that the water he lost during a valve that wouldn’t shut off for his pool was not an unreasonable amount of water to lose over an approximate 24 hour period. After meeting with the Appeals Committee, Mr. Rosen concurred with the Committee that this was not an unreasonable

water loss. A motion was made by Director Abel, seconded by Director Jones and unanimously carried to deny the appeal of Harold Rosen relative to his request for relief of water costs charged due to his a broken valve that was left open on his property.

RESOLUTION NUMBER 1872 COMMENDING
JERRY PALEY FOR 25 YEARS OF SERVICE

The Board congratulated Jerry Paley for 25 years of dedicated service to the District and presented him with a resolution acknowledging his service. A motion was made by Director Wilson to approve Resolution No. 1872 commending Jerry Paley for 25 years of District service. The motion was seconded by Director Abel. The resolution passed 4-0-1 with the following roll call vote:

AYES: Directors Abel, Jones, Puddicombe, Wilson

NOES: None

ABSENT: Director Campbell

ABSTAIN: None

CONSENT AGENDA

A motion was made by Director Abel, seconded by Director Wilson and unanimously carried to approve the consent agenda.

MONTECITO ASSOCIATION REPORT

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

PROPOSED LAFCO GUIDELINES FOR ORDERLY GOVERNMENT

Bob Braitman, Executive Director at LAFCO, reported on the proposed LAFCO guidelines for orderly government. He said that the guidelines were general guidelines which state that urbanized areas should be located within cities whenever and wherever practical. Director Campbell said that special districts function well within cities, using Carpinteria as an example. He reported that the next LAFCO meeting will be held on February 4, 1999.

RESOLUTION NO. 1872 CONSOLIDATING DISTRICT DIRECTOR ELECTIONS WITH STATEWIDE GENERAL ELECTIONS

The General Manager reported on consolidating District director elections with the statewide general elections. He said that this would be a cost savings to the District and would provide for a larger voter participation. He said that the Montecito Sanitary District would be voting on a similar resolution at its next meeting and that the Montecito Fire Protection District had already passed such a resolution. Director Campbell made a motion to approve Resolution No. 1873 consolidating the District director elections with the statewide general elections. The motion was seconded by Director Puddicombe. The Resolution was approved 4-1, with a roll call vote as follows:

AYES: Directors Abel, Campbell, Jones, Puddicombe

NOES: Director Wilson

ABSENT: None

ABSTAIN: None

AWARD OF MAIN REPLACEMENT CONTRACT
FOR CHELHAM WAY

The General Manager reported that three bids were received for the Chelham Way main replacement project, and that Lash Construction was the low bidder at $133,240. The Engineer’s estimate was $155,000. The Engineering Manager reported that the Operations Committee had considered this item and recommended a change to the plans that all of the pipe be 8", and that this pipeline complete a loop. A motion was made by Director Abel, seconded by Director Puddicombe and unanimously carried to approve the adjusted bid from Lash Construction for $169,484 for the Chelham Way Water Main Replacement project, and to approve an additional appropriation of $14,500 from the District’s 1998A bond funds. The adjusted bid from Lash Construction includes the same unit prices as in the original bid.

CONSIDERATION OF SUPPLEMENT OFFER
RELATIVE TO BUELL PROPERTY

The General Manager reported that the Operations Committee had met and discussed the supplemental offer from Mr. Murray Weber relative to the purchase of the Buell property. In the supplemental offer Mr. Weber requested that his purchase price be increased and that an application for a six lot subdivision be submitted to the County instead of the four lot split / lot line adjustment that is currently going through the County process. Residents from Hidden Valley Lane and Ladera Lane Homeowners Associations were present. Several spoke in regards to the requested six lot subdivision. They expressed concerns about the increase of traffic, road hazards and fire hazards since Hidden Valley Road is a very narrow street and dead ends. Some were also concerned about the present application. A motion was made by Director Abel, seconded by Director Puddicombe and unanimously carried to advise the buyer that the District does not wish to pursue a six parcel subdivision of the District’s Buell Reservoir property. Director Abel made a motion to approve an amount up to $10,000 for the engagement of an environmental consultant by the County of Santa Barbara to prepare a Negative Declaration, if needed, for the current four parcel lot line adjustment / lot split application, and to appropriate that amount from the District’s General Repair and Capital Improvement Reserve Fund. The motion was seconded by President Puddicombe and carried unanimously.

REQUEST OF DISTRICT TO SHARE COST
OF HIGHLINE RELOCATION 2303 BELLA VISTA DRIVE

The Engineering Manager discussed the request by Russell Trenholme, buyer of 2303 Bella Vista Drive, to relocate the District Highline that runs across the property and which is located under a portion of the exiting house. He said that he felt the owner should participate in a 50/50 portion of the cost to relocate this portion of the highline. He said that the Operations Committee had reviewed this request and, with the understanding that there would be a 50/50 cost split including engineering and surveying costs, the Committee would be in favor of this. Director Campbell made a motion to approve the relocation of that portion of the highline at 2303 Bella Vista Drive with the understanding that the District would split the costs 50/50 with no cap including engineering and surveying costs, and to appropriate $28,750 from the 1998A bond funds for the District’s estimated share.

DISTRICT POLICY FOR AUTHORITY
OF COMMITTEES TO TAKE ACTION

The Board discussed the proposed District policy for authority of committees to take action, with subsequent ratification by the full Board. President Puddicombe suggested that this item be continued until the next meeting and that the Board come back with suggestions.

PURCHASE OF BACKHOE

Due to a pending manufacturer’s price increase, the purchase of a backhoe was recommended immediately in order to pay the current price. A motion was made by Director Campbell, seconded by Director Jones and unanimously carried to approve the purchase of a new JD310E backhoe from Coastline Equipment in an amount not to exceed $58,500 including tax and the extended warranty, and to appropriate these funds from the 1998A bond funds. The motion carried unanimously.

STATUS OF CAPITAL PROJECTS

Director Campbell said that the Finance Committee had approved the year to date review of appropriations in regards to the Capital projects funding which included the appropriation of $4,700 from the 1998A bond funds for the Stone Meadow Road Main Replacement, the appropriation of $10,000 from the 1998A bond funds for the Bella Vista Reservoir Bypass, the appropriation of $45,000 from the 1998A bond funds for the Lambert Road/Cachuma Turnout, and approved the original budget amount of $7,500 and the appropriation of an additional $2,500 from the 1998A bond funds for the Juncal Dam Valve Automation. A motion was made by Director Campbell, seconded by Director Jones and unanimously carried to ratify the action of the Finance Committee.

YEAR 2000 COMPLIANCE - PURCHASE
OF PERSONAL COMPUTERS

A motion was made by Director Campbell, seconded by Director Jones and unanimously carried to approve the purchase of six personal computers, one notebook computer and the purchase of appropriate software at a total cost of $12,000, and appropriate this amount from the 1998A bond fund in order to comply with the year 2000.

REPORT ON MEETING WITH CARPINTERIA VALLEY WATER DITRICT REGARDING ORTEGA RESERVOIR

The General Manager reported that the Operations Committee had reviewed the proposed Ortega piping modifications and the Committee had requested that the Engineering Manager provide an estimate of the costs to do this project. The General Manager reported on the status of the South Coast Hydraulic Capacity Study and the covering of the Ortega Reservoir.

VERBAL REPORTS ON MEETINGS

CCRB MEETING OF 12/16/98

Director Abel reported on the CCRB meeting of December 16, 1998. She said that the CCRB Board had approved the ratification of converting the Santa Ynez River model from a monthly model to a daily model.

SPECIAL DISTRICT ASSOCIATION MEETING OF 12/18/98

Director Campbell reported on the Special Districts Association meeting of December 18, 1998. He reported that the same directors were elected as officers as the year before.

COMB MEETING OF 12/21/98

Director Jones reported on the COMB meeting of December 21, 1998. He said that the meeting had centered around the Notice of Determination regarding the Cachuma place of use issue. Director Abel added that CCRB and COMB are still considering a mutual meeting date and time.

SPECIAL DISTRICT ASSOCIATION MEETING OF 12/18/98

Director Campbell reported on the Special Districts Association meeting of December 18, 1998. He reported that the same directors were elected as officers as the year before.

LAFCO WORKSHOP OF 1/7/99

Bob Braitman reported on the LAFCO workshop of January 7, 1999.

COMMITTEE REPORTS

OPERATIONS

President Puddicombe said that the Operations Committee items were already reported on.

FINANCE

Director Campbell stated that the Finance Committee items were previously reported on.

PUBLIC INFORMATION

Director Abel gave the Public Information Committee report. She distributed a sheet regarding water quality questions that may arise regarding the new movie "A Civil Action"; and a Wall Street Journal article on Enron and the privatization of water worldwide. She said that the first edition of the District newsletter will be out April 1 and will include the water quality report. President Puddicombe requested that an article be placed in the newsletter regarding fluoride.

WATER MARKETING

There was nothing new to report regarding water marketing.

ITEMS FOR NEXT AGENDA

Director Wilson requested that an item regarding a policy on structures built on the District’s rights of way be placed on the next agenda. Director Campbell requested that a LAFCO report and Special District report be placed on the next agenda. Director Abel requested that an ACWA Board meeting report be placed on the next agenda.

CLOSED SESSION

There was no need for a closed session.

ADJOURNMENT

The meeting adjourned at 5:40 p.m.

Respectfully submitted,

________________________________
C. Charles Evans, Secretary

Approved:

______________________________
Robert Puddicombe, President

Note: The agenda for this meeting was posted at the front counter and on the front wall at the Montecito Water District on
January 15, 1999.