REGULAR MEETING

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, California

TUESDAY, January 20, 2009

2:00 P.M.

AGENDA

1. CALL TO ORDER, ROLL CALL, DETERMINATION OF QUORUM

2. PUBLIC FORUM

(This portion of the agenda may be utilized by any member of the public to address and ask questions of the Board of Directors on any matter not on the agenda within the jurisdiction of the Montecito Water District. Depending upon the subject matter, the Board of Directors may be unable to respond at this time, or until the specific item is placed on the agenda at a future MWD Board meeting in accordance with the Ralph M. Brown Act.)

3. Time Certain Item

A. Time Certain 2:05 p.m. — Appeal of Virginia Hunter, Account Number 02-1996-0

B. Time Certain 2:30 p.m. —Fiscal Year 2007/08 Financial Audit; Mark Poindexter, Poindexter & Company

4. CONSENT CALENDAR

Following items are to be approved or accepted by vote on one motion unless a Board member requests separate consideration:

A. Minutes of December 16, 2008

B. Payment of Bills for December 2008

C. Investment of District Funds

D. Accounts Receivable Write-Offs

5. Montecito Water District Financing Corporation

A. ADJOURN TO ANNUAL MEETING OF MONTECITO WATER DISTRICT FINANCING CORPORATION

6. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF December 15, 2008; Director Abel

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF December 15, 2008; Director Abel

7. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

B. Closed Session – Pursuant to governtment Code Section 54956.9(a), Existing Litigation, Protect our Village vs. John Price, Olive Oil and Gas LLP, and Montecito Water District; Santa Barbara Superior Court Case Number 1304740

C. Closed Session – Pursuant to Government Code Section 54956.9(a), Existing Litigation, Montecito Water District Et Al vs. Penfield & Smith Engineers et al; Santa Barbara Superior Court Case Number 1303752

D. MWD Letter to Santa Barbara County Board of Supervisors REgarding Quagga Mussel Prevention at Lake Cachuma

8. Board of Directors

A. Review of Committee Assignments

B. Directors’ Compensation

9. district Operations Report

A. Hidden Valley Lane Special Homeowner Road-Improvement Assessment

B. Refurbishing and maintenance of employee Housing, 585 San Ysidro Road

C. Jameson Lake Communication System Maintenance

D. 2008 Calendar Year Main Break REport

E. Water Works Operations Report, December 2008

10. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

11. District Business Report

A. Water Sales Report for December 2008

B. November 2008 Revenue and Expense Report

C. Resolution 2052 — Establishing an Identity Theft and Privacy Policy

12. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. PUBLIC INFORMATION COMMITTEE

B. OPERATIONS COMMITTEE

C. FINANCE COMMITTEE

13. AGENDA ITEM REQUESTS

Requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for February 17, 2009.

14. ADJOURNMENT

Note: This agenda was posted at the Montecito Water District front counter and outside display case at 5:00 p.m. on January 16, 2009. The Americans with Disabilities Act provides that no qualified individual with a disability shall be excluded from participation in, or denied the benefits of, the District’s programs, services or activities because of any disability. If you need special assistance to participate in this meeting, please contact the District Office at 805-969-2271. Notification at least twenty-four (24) hours prior to the meeting will enable the District to make appropriate arrangements.

*Supporting documents for agenda items are available at the District front counter during normal business hours.

Materials related to an item on this agenda submitted to the Board Operations Committee after distribution of the agenda packet are available for public inspection in the Montecito Water District offices located at 583 San Ysidro Road, Montecito, during normal business hours.