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, SEPTEMBER 19, 2000

CALL TO ORDER AND ROLL CALL

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

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

The following consent calendar items were considered by the MWD Board of Directors:

A. Minutes of August 15, 2000 meeting.
B. Water Production Report for August 2000.
C. Water Sales Reports for August 2000.
D. Water Works Operation Report for August 2000.
E. Investment of District Funds.
F. Payment of Bills for August 2000.

Director Wilson asked that the minutes be removed from the consent calendar for discussion. Several suggested changes were made to the minutes. A motion was made by Director Drewry, seconded by Director Bachman and unanimously carried to approve the consent calendar and the amended minutes of August 15, 2000.

Vice-President Abel said that this was a request for Counsel Wullbrandt to attend the SWRCB hearings as a representative to Montecito, Goleta and Carpinteria Valley Water Districts because Counsel Wullbrandt was very knowledgeable on all issues relative to water rights on the south coast. She said that she had discussed this with the Consultant Manager of CCRB, Chuck Evans, and that Mr. Evans, herself and President Puddicombe believed that it was very important that Mr. Wullbrandt attend these hearings even if he were to represent only Montecito Water District. Vice-President Abel said that there may be a possibility that water rights above the dam may be discussed, and that Mr. Kidman, Counsel for CCRB, was not versed in that regard. Manager Adjarian said that the estimated cost for his attendance and travel to these hearings would be approximately $4,000. Counsel Wullbrandt noted that Goleta Water District has chartered a plane and that it was expected to cost less than a commercial airline ticket. It was hoped that these costs would be split between the three Districts. A motion was made by Director Drewry, seconded by Director Bachman and carried with Director Wilson opposed to approve Counsel Wullbrandt’s attendance at these hearings at a cost not-to-exceed $4,000.

A. ALDER CREEK DIVERSION FLUME REPAIR PROJECT

Engineering Manager, Tom Mosby reported that the Operations Committee had reviewed this item back in March. It was indicated by the Operations Committee at that time that it would come back to the full Board following the warm weather with a recommendation on whether or not repairs to the Alder Creek flume would be necessary. It was concluded that the amount of water diverted to Jameson Lake would be worth the amount it would cost to repair the Alder Creek flume. Mr. Mosby explained that repairs were expected to cost approximately $10,000 and would take about 10 days to complete. A motion was made by Director Bachman, seconded by Director Drewry and unanimously carried to approve the repairs to the Alder Creek flume diversion structure damaged in February 2000 by a rock slide, and to appropriate funds in an amount not to exceed $10,000 from the Capital Repair and Replacement Fund for these repairs.

B.  ROMERO RESERVOIR PUMP STATION PROJECT / STATUS

The Engineering Manager reported that the Romero Reservoir Pump Station project was progressing nicely and that it was expected to be completed by November 30, 2000. He reported that in order for the Romero Reservoir Pump Station to operate to meet the highest peak water demand periods, that Park Lane Reservoir Pump Station would need some modifications. He said that he would come to the Board in the near future with a proposal to the Park Lane Reservoir. The Engineering Manager noted that there were still some easement issues that needed to be resolved relative to the Romero Reservoir Pump Station Project.

Manager Adjarian noted that each year CCWA requests the District’s next four year state water projections. It was noted that the amount of water requested has gone up from 550 acre feet to 1200 acre feet. The Business Manager said that this was an insurance policy in order to make sure that the District has reserved enough water to meet its demand. The Business Manager stated that water not used could be turned back to the State Water Project and the District then could be reimbursed either $12 per acre foot for water turned in before January, or $5 per acre foot for water turned back in February and that the District would only be reimbursed if there was a buyer for this water.

Vice-President Abel stated that this was a report of the work that was completed at the Juncal Auxillary Dam drainage system. Engineering Manager Mosby said that this item was previously brought before the Operations Committee and Board and it was recommended that the work be completed in a different way. As a result of this he said that the work had been completed in half the time and cost as originally recommended. He noted that all the changes to the drainage system had been done by hand, and that the changes that were made permanently corrected this problem and would now enable the District to receive information never received before. Mr. Mosby noted that the system was built back in the 1920’s and that it had now been restored to its original condition. A motion was made by Director Wilson, seconded by Director Bachman and unanimously carried to appropriate funds in an amount not to exceed $17,500 from the Capital Repair and Replacement Fund for the completed repairs to the Juncal Dam multiple arch drainage system. This appropriation would also include $2,500 for work scheduled in October for modifications to the Highline meter piping system located below the auxiliary dam.

E. PART-TIME ENGINEERING SUPPORT FOR MWD CAPITAL PROJECTS PROGRAM

Vice-President Abel noted that the Operations Committee had reviewed this item at its meeting of September 5, 2000 and recommended approval of Norm Cota, Engineering Consultant, to exceed his 960 hours granted by PERS for the year 2000 in order to assist with the 2000/01 capital projects program. A motion was made by Director Wilson, seconded by Director Drewry and unanimously carried to approve the continuation of the retention of Mr. Norman Cota as an Engineering Consultant for MWD’s capital projects program for FY 2000/01, and to appropriate $39,000 for this position for the FY 2000/01 fiscal year from the 1998 A Bond funds.

F.  NOTICE OF COMPLETIONS

A motion was made by Director Wilson, seconded by Director Drewry and unanimously carried to approve the Notice of Completions for Coast Village Circle main replacement, Coyote Road Water main extension and the Lower Toro Canyon Road main replacement.

Manager Adjarian reported that the Ortega Reservoir had received several positive samples. He said that this was the first time that the Reservoir had tested positive for E-Coli. The Reservoir had been isolated and taken off line and an attempt was made to treat the reservoir. He said that he had been keeping the Department of Health Services informed on everything that was being done to resolve this problem. He said that with the concurrence of Dr. Michael McGuire, McGuire Environmental Consultants, the reservoir was drained and is now being cleaned. Once this has been completed the reservoir will be treated then refilled and put back on line and in service by Friday of this week. Manager Adjarian said that in April the reservoir had been drained to take core samples throughout the bottom of the reservoir as part of the process to attain engineering data for the covering of the Reservoir and that bacteria may have been introduced that was not completely removed. He noted that above Lauro Reservoir there had been continuing problems with positive E-Coli tests. He said that there was going to be a workshop on October 2^nd involving the USBR, COMB, DOHS and the Carpinteria and Montecito Water Districts. Manager Adjarian said that he had met with Mr. Lee Hall, a neighbor to the Ortega Reservoir, and that Mr. Hall had invited him to speak at the Summerland Citizens Association to initiate dialog with this group.

A. MONTECITO BEAUTIFICATION DAY SIGN-UPS NOVEMBER 4, 2000.

Director Abel asked that the Board participate in Montecito Beautification Day by manning the table representing Montecito Water District. The sign-up sheet was passed around.

Vice-President Abel introduced and reviewed the history of the creation of this item. The General Manager stated that ACWA/JPIA helped to develop this policy and then the policy was reviewed by Arlene Prater of Best, Best & Kreiger, MWD’s Labor Counsel. Vice-President Abel said that the Operations Committee and staff had reviewed this policy before bringing the final policy to the Board of Directors for approval. Director Wilson brought up some inconsistencies in the alcohol levels in the policy and after discussion staff was asked to review this policy once again and then place this item back on the next agenda for possible approval.

B.  PROPOSED REVISION OF FY 2000/01 BUDGET FOR MAIN REPLACEMENT
     CARRYOVER PROJECTS.

Manager Adjarian said that the projects listed in the staff memo had not been completed as of June 30, 2000, but that the District was confident that these projects would be completed by the end of this fiscal year. It was noted that this item was reviewed by the Finance Committee at its meeting of September 11, 2000. A motion was made by Director Wilson, seconded by Director Drewry and unanimously carried to approve the proposed revision to the FY 2000/01 annual budget to include the remaining balance of the FY 1999/00 capital bonds and water availability charge and main replacement projects.

Director Wilson said that it was reported at the Montecito Association meeting that the new Executive Director had been selected. He also said that a conflict of interest policy had been discussed.

B.  CACHUMA CONSERVATION RELEASE BOARD MEETING OF AUGUST

Vice-President Abel informed the Board that the Technical and Legal Issues reports were included in the Board packet. She said that the main topic of discussion at the last CCRB meeting was the Biological Opinion. It was now complete and she said that it contained almost everything that CCRB had hoped it would. Counsel Wullbrandt reported on several comments in the Biological Opinion. Director Abel said that CCRB was continuing to meet in closed session regarding strategizing for the State Board hearings. She noted that the hearings begin the second week in November and are not expected to end until March of next year. Vice-President Abel said that the Place of Use issue would be the first issue to be discussed. She noted that as a result of the Lompoc talks and letter was sent to Mr. Schueller at the State Water Resources Control Board from all of the agencies involved in the water rights hearings requesting that the Place of Use issue not be the first issue discussed since all necessary information was not yet completed.

C.  ACWA REGION 5 GENERAL MEMBERSHIP MEETING AND RECEPTION /
     OCTOBER 1 & 2, 2000

Vice-President Abel said that this was placed on the agenda to remind the Board of the upcoming Region 5 meeting in Santa Barbara at the Radisson Hotel and she urged all of the Board to attend if possible. She said that the main topic of discussion would be future water quality standards.

Director Abel said she was unable to attend the COMB meeting. Counsel Wullbrandt reported that there was a discussion regarding the Executive Director’s salary. COMB voted 4-1 (with Montecito Water District representative voting no) to give the Executive Director $5,000 in deferred compensation and a 3% salary increase.

E.  CALIFORNIA SPECIAL DISTRICTS ASSOCIATION MEETING OF JULY

Director Wilson reported the topic of discussion was the Goleta Special Districts incorporation. He said that the upcoming LAFCO meeting was the subject of discussion.

Director Bachman said that the only issue that was not reported on was the Miramar Beach Homeowners Association (MBHOA). He said that the Operations Committee and the MBHOA had gone back and forth about three times. The Committee came to the conclusion that it was not going to request a change in policy to accommodate the MBHOA since the policy had been in place a long time. The Committee was more comfortable with taking care of the right-of-ways and the MBHOA purchasing individual meters. Counsel Wullbrandt noted that the District had developed very good relations with the United Pacific Railroad as a result of the last two easements that were obtained from them.

Vice-President Abel said that there was a spread in the ACWA News on Region 5. She noted that the Public Information Committee would be meeting later in the week to review the draft newsletter. Vice-President Abel said that the Committee had decided to participate in the Special Districts Newsletter since they had insisted on doing an article on Montecito Water District whether or not the District participated. She said the Committee had decided to order 120 copies at $.30. Vice-President Abel said that the District had received a request from Montecito Association to place bill stuffers in the District’s October bills. It was the Board’s consensus to do this another year. Manager Adjarian was asked to respond to this request.

GENERAL MANAGER’S REPORT

The General Manager asked Counsel Wullbrandt to report on the articles in the Santa Barbara News Press relative to the State Water Project. CCWA had served as the Lead Agency for the EIR that was done. There were a couple of water contractors that did not sign the Monterey Agreement amendments and filed suit challenging the process for the EIR document that said that the DWR should be the lead agency but that the EIR was accurate. Director Drewry asked if anyone was going to write a rebuttal. Counsel Wullbrandt said that Dan Masnada at CCWA was going to do so.

A.  LETTER PROPOSAL FROM ENTRIX REGARDING USFWS PLAN FOR THE
     RED-LEGGED FROGS

Manager Adjarian said that he had just received this letter. He said that the Public Comment period would end by October 11^th regarding the proposed plan for the Red-Legged frogs. Staff was requesting that Entrix assist with comments on these frogs. The final letter would be sent to the USFWS before October 11^th. Jean Baldrige will be attending the hearing to hear public comments in San Luis Obispo. A motion was made by Director Wilson, seconded by Director Drewry and unanimously carried to approve Entrix to prepare comments regarding the USFWS plan for the Red-Legged Frogs at a cost not-to-exceed $4,500.

Manager Adjarian noted that a meeting was being held this evening in Carpinteria regarding the transferring the USBR facilities in Carpinteria. Tonight was the formal contract negotiation session. This will go to the Carpinteria Board and then to the USBR to be included in legislation next year. If approved by the Board the same contract will be used for Summerland in transferring its USBR facilities to the Montecito Water District.

Manager Adjarian said that Director Wilson had requested clarification on whether or not Directors were considered employees in the eyes of the IRS. He said that he had not received official notice to date on that issue.

Manager Adjarian said that he would be putting a brief written report with materials together on Board governance to be placed on the next agenda.

A.  DISTRICT COUNSEL REPORT

Counsel Wullbrandt stated that he had nothing new to report at this time.

 ADJOURNMENT

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

Approved:

_______________________________
Jan E. Abel, Vice-President

Attest:

_________________________________
Frederick J. Adjarian, Secretary

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