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, FEBRUARY 15, 2000

CALL TO ORDER AND ROLL CALL                                               SECTION 1

The meeting was called to order by President Puddicombe at 2:00 p.m.
Those in attendance were:

President Puddicombe introduced Mr. Rick Drewry and Mr. Karl Keever, homeowners within the District. There were no other comments made during public forum.

There were several suggested changes made to the minutes of both January 18 and January 25, 2000. A motion was made by Director Abel, seconded by Director Wilson and unanimously carried to approve the consent calendar with the minutes as amended.

A.  TIME CERTAIN: 2:15 P.M: PRESENTATION BY MR. GLEN HILLE, BOYLE ENGINEERING, REGARDING CHLORAMINATION ISSUES.

General Manager Adjarian introduced Mr. Glen Hille and Mr. Ron Abraham with Boyle Engineering. Manager Adjarian indicated that the City of Santa Barbara was considering chloramination at the William B. Cater Water Treatment Plant (WTP) in the near future to satisfy Federal changes to water quality regulations. Staff believed that given the timing, magnitude and cost of the proposed WTP changes, it would be beneficial for the Board to hear a brief presentation by Boyle Engineering on the advantages and disadvantages of chloramination. If the City proceeded ahead with its master plan improvements at Cater, MWD would definitely need to change water treatment processes at its own treatment facilities in the future. Manager Adjarian said that there would be a meeting at the City in March to further discuss this issue.

Director Abel left at 2:20 p.m.

B.  TRANSFER OF USBR (formerly Summerland WD)

Manager Adjarian explained that the former Summerland County Water District had entered into a contract some time ago with the U.S. Bureau of Reclamation (USBR) for the construction of a distribution system and that the title for these facilities still remained with the USBR. Currently, MWD is responsible for maintenance and repairs of the USBR’s facilities. However, in order to repair these facilities, the District has to obtain prior permission from the USBR. Montecito Water District assumed all of Summerland Water District’s obligations when the two Districts were merged in December 1995. Business Manager Evalyn Kerman stated the Carpinteria Valley WD had already initiated the transfer of certain USBR facilities within its service area to CVWD. Business Manager Kerman also noted that there needed to be an act of Congress to transfer these facilities. She also pointed out that National Environmental Policy Act (NEPA) environmental documents would need to be prepared, and that MWD was proposing to use the same environmental consultant as CVWD. A motion was made by Director Wilson, seconded by Director Jones and unanimously carried to: (1) authorize a letter be sent to the USBR accepting the draft agreement for the transfer of the former Summerland County Water District distribution system facilities to the MWD with one minor modification: under Actual Costs, change 60 days to 30 days to request records: (2) authorize staff to retain an environmental consultant to complete the requisite NEPA documentation for a not-to-exceed fee of $10,000; and (3) appropriate $10,000 from the General Capital Repair and Replacement Reserve Fund for this work.

C. PURCHASE OF SURPLUS WATER FROM GLEN ANNE RESERVOIR

Business Manager Kerman explained that there was a 300 acre-feet surplus of water in the Glen Anne Reservoir. She stated that COMB General Manager Bob Wignot had written a letter to the USBR stating that this water should not cost anything since it was essentially seepage water. Montecito’s share of this water would be 35 acre-feet at an approximate cost of $70/AF; the District would pay the pumping costs to the Goleta Water District. She further noted that this water would come to the District as a "paper" transfer. Director Wilson asked if this water would be lost if Lake Cachuma spilled. Counsel Wullbrandt noted that it would be the last water to be lost if there was a spill. A motion was made by Director Jones, seconded by Director Puddicombe and unanimously carried to authorize a letter to be sent to COMB requesting MWD’s allocation of the water, and the District’s percentage share of any surplus water impounded in Glen Anne Reservoir at a cost of the Goleta Water District pumping power costs that is cost effective to the District.

D. PADARO LANE / US 101 CROSSING CHANGE IN SCOPE OF WORK.

Engineering Manager Tom Mosby said the Posilipo Water Main Replacement Project was nearly complete and that water was now being provided to the Fernald Point property owners. He reported that the Padaro Lane Water Main Replacement Project had run into difficulty with rock. A rock boring contractor had stated that a 36" diameter casing, instead of a 24" casing, would be necessary so that workers could crawl into the casing from time to time to remove any rocks encountered during the boring by hand and that this was a more expensive process. President Puddicombe stated that this had been approved by the Operations Committee. A motion was made by Director Wilson, seconded by Director Jones and unanimously carried to: (1) approve the revised bid schedule from Tierra Contracting, Inc. for the scope of work change, and (2) appropriate funding in the amount of $27,180 to cover bid item adjustments and an additional $9,600 for an anticipated 32 hours of rock time for a total appropriation of $36,780 from the 1998 A Bond Fund.

Engineering Manager Mosby said that he had not yet received the signed Acceptance of Easement from Mrs. Constance Fearing. Counsel Wullbrandt said that this item should be discussed in closed session.

Manager Adjarian briefly noted that District Treatment and Production and Engineering staff had been working to finalize an Emergency Disinfection Plan required by the Department of Health Service. The purpose of this plan was to spell out what the District’s obligations were for the treatment of potable water for the community particularly in the event of an emergency. Director Wilson made a motion to receive and accept this plan. The motion was seconded by Director Puddicombe. The motion carried unanimously.

G. FUGRO LETTER PROPOSAL TO COMPLETE 1998 DRAFT RESERVOIR ALTERNATIVES FEASIBILITY STUDY FOR CARPINTERIA/ORTEGA RESERVOIRS.

Manager Adjarian reported that he and General Manager Charles Hamilton of CVWD had met with Mr. Steve Tanner of Frugro West, Inc. regarding the 1998 Draft Reservoir Alternatives Feasibility Study for the Carpinteria / Ortega Reservoirs to discuss finalizing this plan. In order to finalize and update this plan it was being requested that the two Districts retain Mr. Tanner to complete this draft study. MWD would be responsible for paying ½ the cost of this work or $4,230, with CVWD paying the balance. Mr. Tanner would be giving two presentations on the study findings and recommendations--- one to the Operations Committee and a committee of the Board of Directors of CVWD, and the second to a joint meeting of MWD and CVWD Boards of Directors. Following this step, Mr. Tanner would then proceed to prepare an RFP for the combined feasibility study/design and construction of the cover for the Ortega Reservoir. The RFP would be distributed to major engineering firms throughout southern California with specific expertise in reservoir covers. A motion was made by Director Wilson, seconded by Director Jones and unanimously carried to approve the scope of work addition to complete the 1998 Preliminary Alternative Feasibility Studies for the Ortega and Carpinteria Reservoirs prepared by Fugro West, Inc. for the Montecito and Carpinteria Valley Water Districts, and appropriate funding in the amount of $4,230 or ½ of the total amount of $8,460 for completion of the work from the 1998 A Bond fund.

CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.8, REAL ESTATE NEGOTIATIONS AND 54956.9(B), POTENTIAL LITIGATION.

The Board recessed to closed session at 3:55 p.m. pursuant to the Government Code Sections 54956.8 and 54956.9 (b) as captioned above. The Board reconvened to open session at 4:10 p.m. Counsel Wullbrandt reported that the Board had authorized the District’s Real Estate Negotiator to send a letter to Mrs. Fearing’s Legal Counsel Mr. Dan Reicker regarding the easement on her property at 777 Romero Canyon Road. Counsel Wullbrandt said that the District would be holding a Special Board Meeting on February 24^th whereby the District would either accept the easement or take other action as appropriate.

Director Abel returned at 4:15 p.m.

Manager Adjarian explained that MWD did not have in place any formalized procedures for Directors to report their meetings, meeting dates and other related per diems. The current procedure was consuming significant amounts of staff time to complete the documentation process. The Board’s Operations Committee had reviewed the proposed form and had made some suggested changes to the format. The new form would be printed on one side of the page, with the other side devoted to the District’s standard expense report form. Manager Adjarian stated that this form would create the requisite administrative record so that the District would be in compliance with pending IRS regulations regarding the possible classification of Directors as "District employees" for tax purposes. A motion was made by Director Abel, seconded by Director Wilson and unanimously carried to approve the Directors Fees form as amended.

A.  ACTIVITIES OF MONTECITO ASSOCIATION.

Director Wilson said that he had attended the Montecito Association meeting and that the proposed "roundabout" on Butterfly Lane was discussed. City staff recommended that the roundabout project be cancelled, but the Planning Commission did not consider staff’s recommendation. He said that the Montecito Association had held a political discussion between Supervisor Schwartz and Supervisorial candidate Steve Crossland to discuss issues. He noted also that the Association had received a copy of the draft Toro Canyon Plan and that the biggest problem associated with the plan was that there was not a GPAC Committee to receive public input. The Board discussed the fact that the draft Toro Canyon Plan did not allow for subdivisions which had been taken into consideration in planning future service connections and the water needed to supply these properties. It was noted that the District might need to revisit the method of paying for water that was purchased for this purpose. Director Wilson said that this would be the last year he would be serving on the Montecito Association due to term limits, and suggested that Manager Adjarian possibly attend these meetings as time permitted.

1. CACHUMA CONSERVATION RELEASE BOARD MEETINGS OF 1/24/00 AND 2/9/00.

Director Abel reported on the CCRB meetings of 1/24/00 and 2/9/00. She pointed out that each Director had received a copy of the monthly Legal Issues and Technical Issues Reports. She said that the Resources Agency is drafting a Memorandum of Understanding (MOU) in regard to the Pacific Coastal Salmon Recovery Initiative that clarifies the process for the first year’s allocation of funds for California projects. At CCRB’s request, Chip Wullbrandt provided comments on this Draft MOU on the CCRB Board’s behalf. Director Abel reported that CCRB had approved and forwarded a letter of recommendation for Chip Wullbrandt’s appointment to the Technical Advisory Committee for evaluating projects for the Pacific Coastal Salmon funding. Director Abel said that she would be participating in the ACWA Washington, D.C. Conference in late February – early March as an ACWA Board member, and would also be participating as a member of the Pacific Coastal Salmon Recovery Initiative team in making visits on Capitol Hill in support of funding for the initiative in the 2001 federal budget.

C. CENTRAL COAST WATER AUTHORITY MEETING OF 1/27/00.

President Puddicombe said that there was nothing significant to report.

D. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF 1/24/00.

Director Jones said that there was nothing significant to report.

A.  OPERATIONS COMMITTEE

President Puddicombe stated that the Committee had met on February 10, 2000 and that all items had been previously reported on as part of the current agenda.

B.  FINANCE COMMITTEE

Director Wilson reported that everything discussed in the Finance Committee meeting had previously been reported as part of the current agenda.

C.  PUBLIC INFORMATION COMMITTEE

Director Abel asked the Board to let her know if they had any ideas for articles they would like to see in the Spring 2000 newsletter. She said the Public Information Committee would be meeting on February 22nd. She also stated that the newsletter was scheduled to be mailed sometime in the middle of March and would include the annual Water Quality Report.

D.  AD-HOC SEARCH COMMITTEE

President Puddicombe reported that the first Ad Hoc Search Committee meeting was held on February 11, 2000 and that since then advertisements in newspapers and postings in four separate locations had been completed. Prospective Board candidates would need to submit their resumes by February 28^th but that there were none received to date. Director Abel requested that the March 8 at 8:45 a.m. and the March 10 at 2:00 p.m. dates be confirmed for Special Board meetings to interview potential Board candidates. She noted that all applicants will be interviewed and that the Board would receive applicant information in notebooks.

Manager Adjarian explained that there were several areas where staff training would be beneficial to the District. He recommended computer classes, customer service training updates, conflict management classes and first aid training. He also requested a salary survey to be completed by an HR consultant which would facilitate the development of a District compensation philosophy (to be approved by the Board), a comprehensive survey of all MWD staff positions (on a job by job basis) to comparably sized water agencies in Santa Barbara, Ventura, San Luis Obispo and other adjoining counties to ensure that all employees were being properly compensated for their work plus an internal job "equity" assessment. Manager Adjarian proposed the establishment of a new budget line item at a total estimated cost of $21,000 to complete the proposed training program of all employees. Manager Adjarian said that this proposed program had been presented both to the Finance and Operations Committees, with both recommending approval. Manager Adjarian stated that the customer service and first aid training classes would be held by ACWA/JPIA on-site at the District’s offices. A motion was made by Director Abel, seconded by Director Puddicombe and unanimously carried to establish a new expense category in the FY 1999/00 District Budget titled "Employee Training" and to fund the new account by appropriating $21,000 from a Reserve Fund.

Manager Adjarian stated that there was a beneficial program newly available to employees and also Directors via ACWA for professional confidential counseling in various areas such as medical, financial and legal areas. This program would cost the District $815 annually to cover all staff, and would be provided by the same professional consortium that had served the San Diego County region but was now going state-wide. Based on his previous experience at other agencies, he indicated that this new benefit would be very useful to staff, and would be useful to management in addressing job performance-related issues for affecting employees. A motion was made by Director Abel, seconded by Director Puddicombe and unanimously carried to establish a new District Employee Assistance Program (EAP) through ACWA.

D.  OTHER

Director Abel mentioned she had placed materials relative to the ACWA Board meeting in front of the Directors places.

Manager Adjarian said that the District had received the first of a series of updates from the California Department of Water Resources (DWR) regarding water conditions in California for interested Board members. Also, Manager Adjarian said that he had requested Engineering Manager Mosby to prepare an update on the Alder Creek diversions. The District was diverting peak storm flows according to criteria previously agreed upon with the U.S. Forest Service; MWD has not diverted any water out of Alder Creek since January 1995.

Counsel Wullbrandt reported that through the District’s real estate negotiator that there had been discussions with Mrs. Fearing’s Counsel. There had been a verbal commitment to sign the easement. It was recommended the Board hold a Special Board meeting on 2/24 to take action on this item.

Various pieces of correspondence and articles of general interest were included in this section for the information of Board members.

Director Abel requested that a report on the ACWA Washington, D.C. Conference be placed on the next agenda. She also requested that a closed session item relative to the "Lompoc Talks" be placed on the next agenda as well.

There were no additional comments by Board members.

There being no further business to come before the Board, the meeting was adjourned at 5:50 p.m.

Approved:

_____________________________

Robert W. Puddicombe, President

Attest:

_____________________________

Fred. J. Adjarian, Secretary