REGULAR MEETING

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, October 17, 2006

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 15, 2006

B. Minutes of August 30, 2006

C. Minutes of September 11, 2006

D. Payment of Bills for August 2006

E. Payment of Bills for September 2006

F. Investment of District Funds

4. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETINGs OF August 28 and September 25, 2006; Director Abel

1. State Water Resources Control Board Hearing Technical Issues Updates

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETINGs OF August 28 and September 25, 2006; Director Abel

C. Cachuma Managers’ and Attorneys’ meetings of September 6 and October 4, 2006; General Manager and Counsel

5. LEGAL MATTERS

A. Recent and Pending Legal Matters REview (Oral)

B. Capital Cost Recovery Fee – Request for Grant of Conflict Waiver

C. Annual Legal Expense Analysis

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

6. Business

A. Rauch Communication proposal for Newsletter Services

B. 2005/06 Annual Financial Statements and Budget Report

C. FOLLOW-UP on Internal Control Comments Resulting from the 2004/05 Audit

7. district Operations Report

a. Ortega Reservoir Project Progress Report

b. Ortega Reservoir Improvement Project – Phase Three Construction Administration and Engineering Services Proposal from Penfield and Smith

c. US Geological SUrvey Annual Cooperative Water Resources Program at Jameson Lake

d. 2006/07 fire hydrant upgrade program – award of contract

e. severy private water main extension agreement – 2888 east valley road

f. Distribution system Water Quality Model – Calibration

g. Montecito Ranch Estates Private Water Main Extension Agreement – Tract Map 14,290

h. MWD / City Distribution System Intertie at Barker Pass – Final Report

i. Integrated REgional Water Management Plan (IRWMP)

8. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

B. Closed session pursuant to Government Code Section 54957(b)(1) – General Manager’s Annual Performance Evaluation and Compensation REview

9. DIRECTOR AND STAFF MEETING REPORTS

A. Central Coast Water Agency Meetings of August 24 and September 28 2006; Director Puddicombe

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF August 28 and September 25, 2006; Director Wilson

C. LAFCO Annual Conference, San Diego, September 5-7, 2006; Director Wilson

10. COMMITTEE REPORTS/RECOMMENDATIONS

A. OPERATIONS COMMITTEE

B. FINANCE COMMITTEE

C. PUBLIC INFORMATION COMMITTEE

1. Montecito Beautification Day

11. Board information Items

A. Water Sales Report for August and September 2006

B. July and August 2006 Monthly Revenues and Expenditures (formerly Cash Flow)

C. Water Works Operation Reports for August and September 2006

12. AGENDA ITEM REQUESTS

Requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for November 21, 2006.

13. ADJOURNMENT

Note: This agenda was posted at the Montecito Water District front counter and outside display case at 5:00 p.m. on October 13, 2006. 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.