REGULAR MEETING minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, January 16, 2007

2:00 P.M.

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

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

Directors Present:

Directors Jan E. Abel, Sam Frye, Richard Shaikewitz, and Larry Wilson

Directors Absent:

None

Staff Present:

Bob Roebuck, General Manager

Toni Bailey, Business Manager

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

J’Amy Brown, Santa Barbara Independent

2. PUBLIC FORUM

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

3. Moment of Silence in Remembrance of Robert W. Puddicombe

Present Abel highlighted the career of Director Robert Puddicombe on the Board of the Montecito Water District.

The Board observed a moment of silence in remembrance of Director Puddicombe, who served on the Board for over 21 years and passed away December 31, 2006.

President Abel noted that a permanent memorial to Director Puddicombe would be discussed as an item on the February agenda.

4. CONSENT CALENDAR

Director Shaikewitz requested that the minutes of December 19, 2006 be removed from the Consent Calendar for revision. Following discussion, it was moved by Director Frye, seconded by Director Wilson, and unanimously carried to approve the consent calendar with the minutes of December 19 as amended.

5. Montecito Water District Financing Corporation (this item was dealt with after #6)

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

The Board adjourned to the annual meeting of the MWD Financing Corporation at 2:35 p.m.

The meeting of the MWD Board of Directors was reconvened at 2:42 p.m.

6. LEGAL MATTERS

A. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF December 18, 2006

Director Abel reported on the subject meeting.

B. Recent and Pending Legal Matters REview – Oral Report

Mr. Wullbrandt reported on legal matters of interest to the Board.

7. Board of Directors (this item was dealt with before #6)

A. Process for Appointment of New Director

President Abel presented the procedure and timeline for appointing a new Director to fill Director Puddicombe’s seat. Following discussion, it was moved by Director Frye, seconded by Director Shaikewitz, and unanimously carried to approve the Notice of Vacancy and the Timeline for Appointment of New Director.

B. Election of Vice-President

President Abel asked for nominations for Vice President. Director Frye nominated Director Wilson for the office of Vice President, Director Shaikewitz seconded the nomination. There being no further nominations, nominations were closed and the vote was called. Director Wilson was elected Vice President on a vote of 3/0, with Director Wilson abstaining.

C. Review of Committee Assignments

President Abel reviewed with the Board the committee assignments for 2007 as found in their agenda packets.

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8. District Business Report

A. Status of Bill Printing Process

Ms Bailey reported on the success of the new bill printing process, in which District water bills are outsourced to DataProse for printing and mailing.

B. Annual 1996 CCWA Bonds Continuing Disclosure

Ms Bailey presented this item and answered Directors’ questions. It was moved by Director Frye, seconded by Director Wilson, and unanimously carried to approve the 2005/06 District submission to CCWA for transmittal to the Trustee of the 1996 CCWA bonds continuing disclosure update.

C. Annual 1998 Series A Bonds Continuing Disclosure

President Abel presented this item. It was moved by Director Shaikewitz, seconded by Director Frye, and unanimously carried to approve the 2005/06 District Continuing Disclosure submittal to the Trustee for the 1998A Bonds.

D. Annual 2004 COMB BONDS Continuing Disclosure

President Abel presented this item. It was moved by Director Frye, seconded by Director Shaikewitz, and unanimously carried to approve the 2005/06 District Continuing Disclosure to the Trustee for the 2004 COMB Bonds.

E. Expenditures Life to Date for MWD Capital Projects, August 1996 to November 2006

President Abel presented this item. There was no discussion.

F. 1998A Bond Funds Financial Summary

President Abel presented this item. There was no discussion

G. Status of District Funds and Proposed Revisions to Water Rates and Charges

Mr. Roebuck and Ms Bailey introduced this item and the Board discussed the information presented.

H. Legal Services Billing Process

The Finance Committee requested that the Board discuss this item. No action was taken.

9. district Operations Report

A. Ortega Reservoir Project Status Report (Oral)

Mr. Roebuck brought the Board up to date on the progress of the Ortega Reservoir Improvement Project.

B. Professional Services by Steven Bachman, PhD

Mr. Roebuck introduced this item and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Frye, and unanimously carried to authorize the General Manager to prepare a purchase order in the amount of $30,000 for Steven Bachman to provide professional services already included in the 2006/07 Operating Budget.

10. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

Mr. Roebuck presented his list of ongoing projects.

B. Calendar Year 2007 Meeting Schedule

President Abel called the Board’s attention to the 2007 calendar provided to them, showing MWD Board and Committee meetings, and regional meetings in which MWD participates.

11. DIRECTOR AND STAFF MEETING REPORTS

A. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF December 18, 2006

Director Wilson reported that SBCSDA did not meet in December.

12. COMMITTEE REPORTS/RECOMMENDATIONS

A. OPERATIONS COMMITTEE

The Operations Committee did not meet in January.

B. FINANCE COMMITTEE

Directors Wilson and Shaikewitz indicated that the Finance Committee’s activities were covered elsewhere in the agenda.

C. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee will meet on February 5 to work on the first newsletter of the year.

13. Board information Items

No action was taken on these informational items presented to the Board.

14. AGENDA ITEM REQUESTS

There were no requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for February 20, 2007.

15. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 4:41 pm.

Approved:

__________________________

Jan E. Abel, President

Attest:

__________________________________

Robert L. Roebuck, Secretary