REGULAR MEETING

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, California

TUESDAY, November 21, 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 October 17, 2006

B. Payment of Bills for October 2006

C. Investment of District Funds

D. Accounts Receivable Write-off

4. Time Certain Item

A. Time Certain: 2:00 — FY 2005/06 Audited Financial Statements; Mark Poindexter

B. Time Certain: 2:15 — Semitropic Water STorage Bank REport; Steven Bachman, PhD

5. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF October 23, 2006; Director Abel

1. State Water Resources Control Board Hearing Technical Issues Updates

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF October 23, 2006; Director Abel

6. LEGAL MATTERS

A. Recent and Pending Legal Matters REview (Oral)

B. Consideration of Exempting Special Districts / Government Agencies from Capital Cost Recovery Fee

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

7. Business

A. District Employee Housing Rental Agreements

B. Communications Facility Lease Agreement

C. Quarterly Budget REport

D. Quarterly Investment REport

E. CCWA REfunding Revenue Bonds

8. district Operations Report

a. Ortega Reservoir Project Progress Report

b. Ortega REservoir Phase II Notice of Completion

c. Annual Water Production vs Usage Analysis

d. Slurry Seal of MWD Pavement and Virginia Road

9. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

10. DIRECTOR AND STAFF MEETING REPORTS

A. Central Coast Water Agency Meetings of August 24, September 28, and October 26 2006; Director Puddicombe

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETINGs OF August 28, September 25, and October 23, 2006; Director Wilson

C. LAFCO Annual Conference, San Diego, September 5-7, 2006, and meetings of October 5 and November 2, 2006; Director Wilson

11. COMMITTEE REPORTS/RECOMMENDATIONS

A. OPERATIONS COMMITTEE

B. FINANCE COMMITTEE

C. PUBLIC INFORMATION COMMITTEE

12. Board information Items

A. Water Sales Report for October 2006

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

C. Water Works Operation Report for October 2006

13. AGENDA ITEM REQUESTS

Requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for December 19, 2006.

14. ADJOURNMENT

Note: This agenda was posted at the Montecito Water District front counter and outside display case at 5:00 p.m. on November 17, 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.