REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, January 15, 2008

2:00 P.M.

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

President Shaikewitz called the meeting to order at 2:00 p.m.

Directors Present:

Directors Jan E. Abel, Samuel Frye, W. Douglas Morgan, Richard Shaikewitz, and Larry Wilson

Directors Absent:

None

Staff Present:

Tom Mosby, General Manager

Toni Bailey, Business Manager

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

None

2. PUBLIC FORUM

There were no members of the public present who wished to speak on items not on the agenda.

3. CONSENT CALENDAR

Following discussion, it was moved by Director Frye, seconded by Director Morgan, and unanimously carried to approve the Consent Calendar as amended.

4. President’s Report

President Shaikewitz discussed with the Board certain changes he wishes to institute.

He expressed the Board’s gratitude to outgoing officers, Director Abel and Director Wilson. He noted that Director Abel chaired the Board during a year with three novice Directors, possibly a first since the very early years of the District.

President Shaikewitz also discussed with the Board some correspondence he had received, including a letter from Carpinteria Valley Water District (CVWD) concerning Mr. Wullbrandt’s concurrent representation of CVWD, MWD, and Goleta Water District. He suggested that the MWD Board send such a letter to GWD and PP&P. Director Abel moved that such a letter be written and sent, Director Frye seconded the motion and it was carried unanimously.

Mr. Shaikewitz had a copy of a letter sent by CVWD to Santa Barbara Mayor Marty Blum requesting a renegotiation of the JPA for the Cater Treatment Plant. Director Abel stated that she did not believe that MWD or the City of SB would be interested, or well served, by the suggested renegotiation. Mr. Wullbrandt suggested that this matter be placed on the agenda of a future meeting if the Board wishes to discuss more than the history of the situation. President Shaikewitz requested that the issue be sent to the Finance Committee and then, if they so recommend, be brought to the Board.

5. Montecito Water District Financing Corporation

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

The meeting adjourned to the meeting of the MWDFC at 2:38 p.m.

The meeting of the MWD Board reconvened at 2:51 p.m.

6. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

Mr. Wullbrandt reported on legal and legislative matters of interest to the Board and answered Directors’ questions regarding the requirements of the Brown Act.

7. Board of Directors

A. Review of Committee Assignments

President Shaikewitz reviewed the Directors’ assignments to District Committees and regional boards and agencies.

8. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

Mr. Mosby reported on the operations of the District for the past month and answered Directors’ questions.

B. Water Efficient Landscape Design Guidelines

Mr. Mosby presented this item and he and Mr. Wullbrandt answered Directors’ questions. Mr. Wullbrandt suggested that the Board may wish to consider an update to the Urban Water Management Plan, even though it is not required at this time, in order to have current water supply information available to area planning agencies.

C. CONSERVATION WATER RATE STRUCTURE AND Classification DEFINITIONS

Mr. Mosby presented this item and he, Ms Bailey, and the Operations Committee answered Directors’ questions.

D. 2007 CALENDAR YEAR WATER MAIN BREAK REPORT

Mr. Mosby presented this report and answered Directors’ questions.

E. TORITO ROAD WATER MAIN REPLACeMENT / Extension PROJECT and proposed Cost-share agreement

Mr. Mosby presented this item and answered Directors’ questions. Following discussion it was moved by Director Frye, seconded by Director Morgan, and unanimously carried to:

1. approve the replacement of the water main from Toro Canyon Reservoir to CS Fire Hydrant #48, and appropriate funding in the amount of $160,000 from the 1998-A bond funds;

2. Approve a cost-share project between MWD and the Torito Road Homeowners Association (TRHOA) for a 475-foot main extension on Torito Road, conditional on receipt of a lump sum $60,000 payment from TRHOA, and appropriate funding in the amount of $25,000 from the 1998-A bond funds;

3. Approve the approximately 500-foot water main loop extension on Torito Road and appropriate funding in the amount of $120,000 from the 1998-A bond funds;

4. Authorize the General Manager to notify the TRHOA of the Board’s approval of the cost-share project; and

5. Authorize the General Manager, upon agreement in writing from TRHOA and receipt of the cost-share payment of $60,000, to engineer and bid the project and return to the Board with the bid results for approval prior to issuance of a notice to proceed to the low bid contractor.

F. Water Works Operation Report for December 2007

Mr. Mosby distributed the Water Works Operations Report and answered Directors’ questions.

9. District Business Report

A. Water Sales Report for December 2007

Ms Bailey presented this report.

B. November 2007 Revenue and Expense Report

Ms Bailey presented this report.

C. Resolution 2038 — Identifying Persons with MWD Investment Authority with the State of California Local Agency Investment Fund (LAIF) and Repealing Resolution No. 2006

Ms Bailey presented this item and answered Directors’ questions. Following discussion it was moved by Director Abel, seconded by Director Frye, and carried by the following role-call vote to approve Resolution No. 2038 as presented:

AYES: Directors Abel, Frye, Morgan, Shaikewitz, and Wilson

NOES: None

ABSTAIN: None

D. Resolution 2039 — Board Authorization of Signatories for Checking Accounts at Santa Barbara Bank & Trust

Ms Bailey presented this item and answered Directors’ questions. Following discussion it was moved by Director Morgan, seconded by Director Frye, and carried by the following role-call vote to approve Resolution No. 2039 as presented:

AYES: Directors Abel, Frye, Morgan, Shaikewitz, and Wilson

NOES: None

ABSTAIN: None

10. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee had not met since the last Board meeting. Several Directors made suggestions for the next Public Information work items. Director Frye noted that it is important to keep the website current.

B. OPERATIONS COMMITTEE

Directors Frye and Shaikewitz reported that the activities of the Operations Committee had been covered elsewhere in the agenda.

C. FINANCE COMMITTEE

Directors Wilson and Morgan reported that the activities of the Finance Committee had been covered elsewhere in the agenda.

D. ACWA Fall Conference, November 28-30 Indian Wells

Directors Morgan and Shaikewitz reported on the subject conference.

E. Governmental Finance Officers Association Training Conference, January 7-8, 2008

Ms Bailey reported on the subject conference.

11. AGENDA ITEM REQUESTS

Director Abel requested a closed session item on the ongoing State Water Resources Control Board hearings for the February meeting. There were no other requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for February 19, 2008.

12. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:23 pm.

Approved:

__________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary