REGULAR MEETING

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, California

TUESDAY, September 18, 2007

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. 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 August 21, 2007

B. Minutes of September 7, 2007

C. Payment of Bills for August 2007

D. Investment of District Funds

4. Time Certain Item — 2:10 p.m.

A. Public Hearing: Ordinance No. 88 — Fixing the Rate of Daily Compensation for Directors

5. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF August 27, 2007; Director Abel

1. State Water Resources Control Board Hearing Technical Issues Update

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF August 27, 2007; Director Abel

6. Legal MATTERS

A. Recent and Pending Legal Matters REview (Oral)

B. ACWA Committee Appointment Nominees for the 2008-2009 Term

7. District Business Report

A. Water Sales Report for August 2007

B. July 2007 Revenue and Expense Report

C. Liability Insurance and Premium Payment

D. 2006/07 Annual Budget Report

8. district Operations Report

A. Ortega Reservoir Project Status Report (Oral)

B. US Geological Survey (USGS) / MWD Cooperative Water REsources Program at Jameson Lake

C. Coast Village Road / Hot Springs Road Roundabout – Water Main Relocation

D. Danielson Road Water Main Replacement Project

E. Monthly Water Supply Report

9. GENERAL MANAGER’S REPORT

A. General Manager Succession

1. Acceptance of General Manager position by Thomas R. Mosby (Oral)

2. Recruitment for Engineering Manager position (Oral)

B. Conservation Rate REstructuring DISCUSSION and Implementation Schedule

C. Ongoing Projects Update

1. Financial and Utility Billing Software

D. Water Works Operations REport

---------------------------------------------- Legal Counsel Departs----------------------------------------------

10. DIRECTOR AND STAFF MEETING REPORTS

A. Central Coast Water Agency Meeting of August 23 , 2007; Director Shaikewitz

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF August 27, 2007; Director Wilson

11. COMMITTEE REPORTS/RECOMMENDATIONS

A. OPERATIONS COMMITTEE

B. FINANCE COMMITTEE

C. PUBLIC INFORMATION COMMITTEE

12. AGENDA ITEM REQUESTS

Requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for October 16, 2007.

13. ADJOURNMENT

Note: This agenda was posted at the Montecito Water District front counter and outside display case at 5:00 p.m. on September 14, 2007. 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.