Tuesday, February 16, 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 3:00 p.m. on TUESDAY, FEBRUARY 16, 1999

CALL TO ORDER AND ROLL CALL

The meeting was called to order by President Puddicombe at 2:00 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 Chip Wullbrandt, District Counsel Gary Ricks, Counsel Cathy Muneio, Secretary

PUBLIC FORUM

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

CONSENT AGENDA

Several corrections were made to the minutes of January 19, 1999. A motion was made by Director Jones, seconded by Director Campbell and unanimously carried to approve the consent agenda, including the amended minutes of January 19, 1999.

TENTATIVE AWARD OF BID CONTRACT FOR HIGHLINE MAIN RELOCATION
2303 BELLA VISTA DRIVE

The General Manager reported that he had spoken with Russell Trenholme, the buyer of the property at 2303 Bella Vista Drive, who indicated that he is only willing to pay $30,000 to relocate the Highline under the house he is purchasing. He said that he had discussed a possible Highline break with his insurance company, and that his policy would take care of any damage if the Highline were to break. The District has received bids for this work, with a low bid of $88,000 from Lash Construction , including $80,000 for the Highline relocation. The Engineering Manager said that the bid could be held for several months until there is an agreement reached. The District offered a solution of splitting the cost of the Highline relocation 50/50. The seller had provided $50,000 in the sale of the home to the buyer for this relocation. A motion was made by Director Abel to send a letter to Mr. Trenholme stating the District offered a solution and he agreed to that solution, and that he purchased the property with the knowledge and the need to fix the problem, and that the Board receive a copy of this letter prior to it being reviewed by Operations Committee so that the Operations Committee could review any comments from other Board members. The motion was seconded by Director Wilson. The motion carried unanimously.

Director Jones left the meeting. The General Manager and Counsel left the meeting to attend a funeral.

MONTECITO ASSOCIATION REPORT

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

1998-99 SECOND QUARTER DISTRICT BUDGET STATEMENTS
AND FINANCIAL REPORT

Director Campbell stated that the Finance Committee had reviewed the second quarter budget statements, and he complimented staff on their clarity and explanatory information. The Board reviewed the budget information.

QUARTERLY REPORT ON INVESTMENT POLICY

The Business Manager said that the District is mandated to provide the Board with a quarterly report on investments. She also informed the Board that the District has sufficient funds to pay its expenses for the next six month period.

REVISED ORTEGA RESERVOIR INFLOW/OUTLOW PIPING PROPOSAL

The Engineering Manager indicated that this item had come before the Board on several occasions. Carpinteria Valley Water District has reviewed the latest proposal and approved it. Letters have been sent to the City of Santa Barbara and COMB for review. Director Abel made a motion to approve Montecito’s participation on a 50/50 cost share basis with Carpinteria Valley Water District to install a new pipeline costing approximately $250,000 to improve circulation patterns at Ortega Reservoir, and to appropriate $125,000 from the 1998A bond funds for Montecito’s share of the work. The motion was seconded by Director Wilson and carried unanimously.

LETTER TO RIVEN ROCK MUTUAL WATER COMPANY
RELATIVE TO WATERLINE CAPACITY

President Puddicombe said that the Operations Committee had met with the Fire District staff to discuss this, and that a letter had been sent to the Board of the Riven Rock Mutual Water Company supporting the letter from the Montecito Fire Protection District, and requesting that a meeting of the parties be held. Director Wilson said that the District may receive some assistance from the Montecito Association regarding the fire flow problems at Riven Rock. President Puddicombe said that the District was awaiting a response from the Board of Riven Rock.

REQUEST FROM PROPERTY OWNER FOR COST SHARE AGREEMENT
FOR UPGRADE OF PICACHO LANE, JR. WATER MAIN

The Engineering Manager said that Mr. Fred Lukas had purchased the 9 acre parcel behind the District and that he was requesting that the District participate in a cost share main replacement project on Picacho Lane, Jr., to improve water distribution and fire flow. President Puddicombe said that the Operations Committee had reviewed this and that it appears to qualify under the Water Availability Charge and that a 50/50 cost sharing would be appropriate. Director Campbell made a motion to approve entering into a cost share agreement with Fred Lukas for a 50/50 cost sharing in replacing a 1941 4" cast iron water main with a new 8" DIP water main, and to appropriate funds from the 1998 A bonds in an amount of $17,500 for the District’s 1/2 share of the estimated $35,000 total project cost. The motion was seconded by Director Abel and carried unanimously.

POLICY ON STRUCTURES BUILT ON DISTRICT RIGHTS OF WAY

The Business Manager said that the neighboring districts were contacted to see if they had a policy regarding encroachments on district rights of ways, and they did not. The District is concerned that building permits are issued by the County without checking on easements. The County receives title policies in which the easements are recorded, but does not seem to be reviewing these policies. Staff was directed to work with Counsel to develop a policy to restrict structures for placing buildings on District rights of way.

DISTRICT OVERTIME POLICY

The Business Manager said that in 1996 the District switched to following the policy for District overtime to the Federal law. Subsequently, the District has experienced a problem that, if an employee took a day off during a 40 hour work week, the employee would be paid straight time, not overtime, if he was called out during that week until he actually had worked a 40 hour period. She said that the City of Santa Barbara, Goleta Water District, Carpinteria Valley Water District and the Central Coast Water Authority were paying in a different manner, and that a work week can be defined as the District chooses. It was recommended that the District define the work week to include any paid time. A motion was made by Director Campbell, seconded by Director Abel and unanimously carried to approve a District policy that provides for time and a half pay to be paid after 40 hours in a week, including other paid time.

APPROPRIATION OF FUNDS FOR NEW FACSIMILE MACHINE

A motion was made by Director Campbell, seconded by Director Abel and unanimously carried to approve the purchase of a new facsimile machine for $1,719, and to appropriate $1,719 for the purchase of this machine from the District’s General Capital Repair and Replacement Fund.

PROPOSED DISTRICT MEDICAL REIMBURSEMENT PLAN

The Business Manager explained the proposed District Medical Reimbursement Plan. She said that this was an offer to employees to set aside monies in a fund that is non-taxable. Any medical expenses, co-payments, prescriptions, etc. would be paid from that employee’s fund. The District staff requested between $450-500 to put this plan together. This differs from most plans of this type since the employees would receive back any unused funds at the end of the year. A motion was made by Director Wilson, seconded by Director Abel and unanimously carried to approve establishing a District Medical Reimbursement Plan, and approved $500 to put a plan together.

BOARD MEETING SCHEDULE

By consensus, the Board approved retaining the Board meeting schedule of one meeting per month on the third Tuesday with the option to call special meetings as necessary. Director Abel was requested to apprise the other Board members of any informative meetings regarding year 2000 water rights hearings.

VERBAL REPORTS ON MEETINGS

SANTA BARBARA WATER PURVEYORS AGENCY MEETING OF JANUARY 22, 1999

Director Wilson reported that Rob Almy spoke on the Bradbury Dam winter modified flow program.

SPECIAL DISTRICTS ASSOCIATION MEETING OF JANUARY 25, 1999

Director Campbell reported that Bob Braitman, LAFCO Executive Officer, discussed the proposed LAFCO Guidelines for Orderly Government. He said Joni Gray, 4th Dist rict Supervisor, also spoke.

CACHUMA CONSERVATION RELEASE BOARD MEETING OF JANUARY 27, 1999

Director Abel reported that Lompoc was interested in talking with the water agencies regarding the proposed Below Narrows Exchange. She also reported on the participation in the Pacific Coastal Salmonid Recovery Initiative. She said that CCRB prepared information for planning and lobbying for this initiative and that the name had been changed from Northwest Coastal Salmon Initiative to the Pacific Coast Salmon Initiative to include a larger area of interested parties. She also reported that CCRB meetings will now be held at the same place and date as the COMB meetings, at 1:30 p.m. with COMB at 4:00 p.m.

CENTRAL COAST WATER AUTHORITY MEETING OF JANUARY 28, 1999

President Puddicombe said that a written report was included in the Board packet.

ACWA BOARD OF DIRECTORS MEETING OF JANUARY 29, 1999

Director Abel said that a Director of the Department of Water Resources had not yet been selected.

She said that Governor Davis was taking a hands on approach to filling posts, but there were many left to fill. She said that ACWA’s goals and housekeeping changes were discussed. She said that there was an addition of a new goal regarding the relationship of ACWA to the California environmental community in seeking to develop partnerships.

LAFCO MEETING OF FEBRUARY 4, 1999

Director Campbell reported that the next LAFCO meeting will be held on March 11th at the County Planning Hearing room. He said that Lompoc is trying to expand its sphere of influence. He said that LAFCO agreed to expand Lompoc’s boundaries up to the middle of the Santa Ynez River, but would not approve crossing it.

COMMITTEE REPORTS

OPERATIONS

REQUEST FROM MIRAMAR BEACH HOMEOWNER’S ASSOCIATION
FOR COST SHARE AGREEMENT FOR MAIN EXTENSION

The Engineering Manager reported on the request from the Miramar Beach Homeowner’s Association for the District to participate in a 50/50 cost share agreement for an 8" main extension on Miramar Beach Road, with the District sharing in the costs of this project. President Puddicombe said that the area does not have adequate fire protection and that this would solve that problem. A motion was made by Director Abel, seconded by Director Campbell and unanimously carried to approve a conceptual cost share agreement with the Miramar Beach Homeowners Association for a water main extension on Miramar Beach Road, with the District sharing in water main construction, water related engineering and surveying costs on a 50/50 basis for the extension of an 8" water main from Eucalyptus Lane to a terminus on Miramar Beach Road. Tom Mosby reported that the complexity of the project increased significantly with the homeowners wishing to underground all utilities in a common trench. We will also contact the Miramar Hotel to determine if they will participate in the looping of the main.

OTHER

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 annual 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 Campbell requested that a LAFCO report and Special District report be placed on the next agenda. Director Abel requested that a report on the ACWA DC Conference be placed on the next agenda.

CLOSED SESSION

There was no need for a closed session.

ADJOURNMENT

The meeting was adjourned at 5:45 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
February 16, 1999.