MINUTES OF A SPECIAL 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, November 23, 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:

PUBLIC FORUM

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

President Puddicombe introduced the newly appointed District General Manager, Fred Adjarian.

CONSENT AGENDA

There were several suggested changes to the minutes. There was also a question on which turnouts were from the Ortega Reservoir on the Water Works Operations Report. General Manager Evans answered the question and discussion continued pertaining to the District’s distribution system. Director Wilson asked about the ACWA dues. Director Campbell said that even though ACWA dues are higher than most organizations they provide insurance at very low rates. A motion was made by Director Campbell, seconded by Director Abel and unanimously carried to approve the consent agenda.

ACTIVITIES OF MONTECITO ASSOCIATION

Director Wilson said that a committee was formed to review school safety for pedestrians and school children. He said new assignments were given for committees at the association and that the roundabout at Butterfly Lane and Coast Village Road was discussed.

RESOLUTION NO. 1884 PETITIONING THE DISTRICT FOR ANNEXATION, GOSTOVITCH, APN 155-02-016, 1000 BLOCK OF TORO CANYON ROAD

A motion was made by Director Campbell, seconded by Director Abel and unanimously carried with the following roll call vote to approve the petition for the annexation of the Gostovitch property, APN 155-020-16, to the Montecito Water District by adopting Resolution No. 1884, with the stipulation that the owners comply with the District’s terms and conditions for annexation. Counsel Wullbrandt suggested that it be made clear that the property is requesting a ¾" meter and that according to the District’s rules and regulations, the property will not receive an agricultural rate unless there is a 1" meter and the property fits the other requirements of the agricultural category.

AYES: Directors Abel, Campbell, Jones, Puddicombe, Wilson

NOES: None

ABSENT: None

ABSTAIN: None

RATIFICATION OF BID AWARD AND EASEMENT AGREEMENT FOR HIGHLINE RELOCATION AT 999 ROMERO CANYON ROAD

General Manager Evans said that he was requesting ratification of the bid award for the highline relocation at 999 Romero Canyon Road. The total cost to the District is $48,800 which would include materials. Director Abel made a motion to ratify the bid award and easement agreement. The motion was seconded by Director Puddicombe. The motion carried unanimously.

BUELL RESERVOIR PROPERTY – PROPOSED PUMP STATION

The Engineering Manager explained that the construction of a new pump at the Buell Reservoir property was necessary in order to accommodate the increased demand in this area. A motion was made by Director Wilson, seconded by Director Puddicombe and unanimously carried to approve the construction of a new pump station at the Buell Reservoir property at a cost not-to- exceed $100,000, and to appropriate funding for this pump station from the 1998A Bond funds. The Engineering Manager said that this will take care of the problem for a number of years, but is not a permanent solution.

STETSON REGULATOR/EAST VALLEY ROAD – PROPOSED PUMP STATION

Director Campbell removed himself from consideration of this agenda item. A motion was made by Director Abel, seconded by Director Wilson and carried 4-0-1 with Director Campbell abstaining, to approve the construction of a new pump station at the Stetson regulating vault at a cost not-to-exceed $50,000, and to appropriate funding for this pump station from the 1998A Bond funds.

RIVEN ROCK / DISTRICT WATER SYSTEM REVISED PROPOSAL

This item was postponed to the December 14^th Board meeting so that Mr. Tom Bollay could be present at the meeting.

CLAIM OF UNITED SERVICES AUTOMOBILE ASSOCIATION
REPRESENTING JOSEPH H. HARDIN FOR PROPERTY DAMAGE

A motion was made by Director Abel, seconded by Director Campbell and unanimously carried to reject on its merit the claim for property damage of the United Services Automobile Association representing Mr. Joseph H. Hardin.

LETTER FROM CARPINTERIA VALLEY WATER DISTRICT REGARDING PROVIDING COVER FOR ORTEGA RESERVOIR AND USBR LETTER PROVIDING SCHEDULE FOR ORTEGA RESERVOIR SEISMIC STUDY

General Manager Evans reported that the Carpinteria Valley Water District had approved the covering of Ortega Reservoir and that this letter was included in the Board packet.

RATIFICATION OF NOTICE OF EXEMPTION
FOR 1999-2000 WATER AVAILABILITY CHARGE PROJECTS

A motion was made by Director Campbell, seconded by Director Abel and unanimously carried to ratify the Notice of Exemption for this year’s capital projects as listed. President Puddicombe requested that pipes scheduled to be replaced with 6" pipe be replaced instead with 8" pipe.

LETTER FROM SANTA BARBARA MAYOR HARRIET MILLER REGARDING DISTRICT AND CARPINTERIA VALLEY WATER DISTRICT LETTER RELATIVE TO SHEFFIELD RESERVOIR

General Manager Evans said that this item was for information only. President Puddicombe said that the District should wait to respond until the analysis has been completed.

DRAFT UPDATE OF EMPLOYEE HANDBOOK

General Manager Evans said that a draft of the revised Employee Handbook had been previously distributed under separate cover, and that this will be considered at the December 14, 1999 Board meeting. Mr. Adjarian suggested that a staff meeting be held to receive comments from staff on the proposed revised Employee Handbook prior to the next Board meeting.

The Board went into closed session at 4:00 p.m. When the Board returned to open session at 5:22 p.m. it was stated that the Board voted 4-1, with Director Wilson voting no, to authorize District Counsel to send a letter to the County Counsel seeking County Counsel’s assistance in obtaining an opinion from the Attorney General concerning whether Director Campbell meets the District Director residency requirements.

ACWA Region 5 Meeting of October 25, 1999

Director Abel reported on the ACWA Region 5 meeting and reception in Cambria that President Puddicombe, Counsel Wullbrandt and she had attended. She stated that some of the highlights were the announcement of the Region 5 slate of officers, an update on the Colorado River, and a Calfed update. She said there were report on radon, the Pacific Coast Salmon Initiative and various ACWA Committee reports. She also said that Bob and Martin Rauch had given a presentation on how public agencies should deal with serious public challenges.

Special Districts Association Meeting of October 25, 1999

Director Campbell said the Association had formed a committee to produce a special districts publication to distribute to 50,000 county residences. Director Campbell said that Mr. Rauch may be hired to design this publication.

November 1 and 22, 1999

Director Abel gave highlights of the two November meetings. She said that the main topic was the ribbon cutting ceremony for Hilton Creek. Director Abel asked if all of the Board had received their invitations for the December 16, 1999 ribbon cutting ceremony. She said that over 325 elected and regulatory officials have been invited to celebrate the inauguration of the Fish Management Plan. She said that the Hilton Creek ribbon cutting ceremony will serve several purposes since CCRB will be involved in obtaining grant application funds. She said that several dignitaries will be attending to see the completion of the initial step in this plan. In the case of the Pacific Coastal Salmon Initiative, the ceremony is a demonstration validating the fact that we are ready to use those funds toward implementing our long range Fish Management Plan. Director Abel also mentioned that NMFS had asked ACWA for nominations for their Recovery Science Review Panel at ACWA’s recent Board meeting. A recommendation was made to have Ms. Jean Baldrige serve on that panel. NMFS wants to have two or three qualified scientists to work on the panel to review restoration and recovery efforts, making sure they are scientifically appropriate.

Counsel Wullbrandt reported on the Biodiversity Council Watershed Group which was formed to coordinate funding from the California Resources Agency. The Santa Barbara County Water Agency is being kept informed, but none of the other county agencies have been invited to participate in this group. Mr. Wullbrandt said there are only two people south of Santa Cruz involved in this group. This group will be deciding where funds are to be spent on certain projects, and it will be the group that makes recommendations on how the Pacific Salmonid Initiative funds are spent. Counsel Wullbrandt said that the final budget approved by Congress included $9 million dollars for California for the fiscal year 2000. He said Sonoma County representatives have been meeting with the State on distribution of this funding. Each of the 13 coastal counties will put forward $750,000 worth of projects to be paid out of $10 million dollars for both the federal government and the State. We have already identified $1.3 million dollars of our local projects to be funded. Counsel Wullbrandt suggested that an item approving a resolution be placed on the next agenda for Board consideration confirming that the President or Manager can sign a group letter from the 13 agencies.

NOVEMBER 1 AND 22, 1999

Director Abel reported on the first November meeting. She said it was a routine meeting but they did have a walk-about with the architect on the COMB building remodel. The building that is to be remodeled is currently 1,900 square feet and will be enlarged to 5,000 square feet. The construction will begin in the summer of 2000 and will last about 11 months.

A report was given of the November 22, 1999 meeting. Director Jones said that there was a discussion about flood releases and $70,000 was approved for Phase two of this project.

LAFCO MEETING OF NOVEMBER 4, 1999

Director Campbell reported that at the last LAFCO meeting there was an annexation to the Goleta Sanitary District. LAFCO has delegated the chair and vice-chair authority to allow cities and special districts to provide services outside their boundaries under certain specifications. Thus, if there is an emergency, it doesn’t have to wait until the next LAFCO meeting.

Director Abel and Counsel Wullbrandt reported on this meeting.

Director Abel reported that there was a lot of recognition and thanks since it was the last Board meeting of the term. A progress report on the 1999 ACWA goals was included in the Executive Officer’s Report. There was a final draft of ACWA’s new goals for year 2000. Also there was the latest update on the Anadromous Species Task Force. Director Abel also shared with the Board several articles from various sources. The Director of Resource Management and Development from Azurix ( a former subsidiary of Enron) will speak at the Region 5 meeting at the Fall ACWA Conference.

Director Wilson mentioned that the Board might be interested in reading the report called "Residential End Uses of Water".

President Puddicombe reported that all items relative to the Operations Committee meeting had previously been discussed.

Finance Committee

Director Campbell reported that all items were included under other agenda items relative to the Finance Committee.

Public Information Committee

Director Abel said that the Public Information Committee had not met so there was nothing new to report.

Water Marketing Committee

President Puddicombe said that the Water Marketing Committee had not met.

ITEMS ON NEXT AGENDA

Director Wilson requested that a status report on the 1998A Bond issue be placed on the next agenda to see if the District has accomplished the projects it had projected being able to accomplish during the last several years.

ADJOURNMENT

The meeting was adjourned at 6:00 p.m.

Respectfully submitted,

________________________________
C. Charles Evans, Secretary

Approved:

______________________________
Robert W. 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 November 19, 1999.