REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, February 19, 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 any item not on the agenda.

3. CONSENT CALENDAR

Following discussion, it was moved by Director Wilson, seconded by Director Morgan, and unanimously carried to approve items A and B of the Consent Calendar as amended.

It was moved by Director Frye, seconded by Director Morgan and unanimously carried to ratify the January 29, 2008 transfer of $500,000 from the Districts SBB&T account to the District’s LAIF account.

Following discussion on item 3-D, Accounts Receivable Write-Offs, it was moved by Director Wilson, seconded by Director Morgan, and unanimously carried to authorize the write-off of the submitted list totaling $1,086.87.

4. Cachuma Matters

A. Cachuma Conservation and RElease Board meeting of January 28, 2008

Director Abel reported on the subject meeting and called the Board’s attention to the materials included in their agenda packets.

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF January 28, 2008

Director Abel reported on the subject meeting and called the Board’s attention to the materials included in their agenda packets.

C. closed session pursuant to Government Code Section 54956.9(a)- Pending Litigation/Administrative Proceeding before SWRCB

The Board adjourned to closed session at 2:47 p.m.

The Board reconvened to open session at 3:15 p.m. President Shaikewitz reported that the Board gave direction to Counsel and staff.

Also under section 4, Director Abel noted that Mr. Wullbrandt will be traveling to the ACWA Washington D.C. Conference on CCRB’s behalf.

5. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

Counsel Wullbrandt had no legal items on which to report.

B. Directors Attending Standing Committee Meetings / Brown Act (Oral)

Counsel Wullbrandt clarified the provisions of the Brown Act which cover Directors attendance at meetings of standing committees of which they are not members. He answered Directors’ questions on this subject. He also noted that ad hoc committees do not fall under the Brown Act, but Directors not members of such committees may not attend their meetings.

Legal Counsel Departed at this point.

6. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

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

B. Water Supply Plan Update

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 ratify the General Manager’s action canceling participation in the Department of Water Resources Water Transfer Agreement Program for the 2008 calendar year.

C. Water Works Operation Report for January 2008

Mr. Mosby presented this item and answered Directors’ question.

D. Cater Treatment Plant Joint Powers Agreement

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

7. Board of Directors

A. Appointment of representative to LAFCO Independent Special District Selection Committee meeting, February 25, 2008

President Shaikewitz presented this item for Board consideration. Following discussion, it was moved by Director Frye, seconded by Director Morgan, and unanimously carried to appoint Director Wilson as MWD’s representative to the LAFCO Independent Special District Selection Committee meeting on February 25, 2008.

8. Ortega Reservoir Project

A. ORTEGA RESERVOIR COVER – PROPERTY AND LIABILITY INSURANCE

Ms Bailey presented this item and answered Directors’ questions. Following discussion it was moved by Director Frye, seconded by Director Morgan, and unanimously carried to authorize the General Manger to execute an agreement with Carpinteria Valley Water District for Property Coverage through the Joint Powers Insurance Agency (JPIA).

B. RESERVOIR TOE DRAIN FLOW Report

Mr. Mosby presented this item and answered Directors’ questions. Following discussion it was moved by Director Wilson, seconded by Director Morgan, and unanimously carried to authorize the General Manager to issue an appropriate response to the February 14, 2008 letter from COMB on this issue and draft letters to the project engineer and contractor with advice from Legal Counsel.

C. ORTEGA RESERVOIR IMPROVMENT PROJECT - PUBLIC DEDICATION CEREMONY (Oral)

Mr. Mosby informed the Board that plans are being made for a public dedication ceremony to mark the completion of the Ortega Reservoir Improvement Project. The Public Information Committee will be working on these plans and will be bringing reports to the Board.

D. Project costs Summary

Mr. Mosby presented the cost summary on the completed Project for the public record.

9. District Business Report

A. Water Sales Report for January 2008

Ms Bailey presented this item and answered Directors’ questions.

B. December 2007 Revenue and Expense Report

Ms Bailey presented this item.

C. Quarterly Financial Statements and Budget Report

Ms Bailey presented this item.

D. Quarterly Investment Report

Ms Bailey presented this item and answered Directors’ questions.

E. Annual 1996 CCWA Bonds Continuing Disclosure

Ms Bailey presented this item and answered Directors’ questions. Following discussion, it was moved by Director Morgan, seconded by Director Wilson, and unanimously carried to ratify the 2006/07 District submission to CCWA for transmittal to the Trustee of the 1996 CCWA bonds continuing disclosure update.

F. Annual 1998 Series A Bonds Continuing Disclosure

Ms Bailey presented this item and answered Directors’ questions. Following discussion, it was moved by Director Morgan, seconded by Director Wilson, and unanimously carried to approve the 2006/07 District continuing disclosure submission for transmittal to the Trustee for the 1998-A bonds.

G. Annual 2004 COMB BONDS Continuing Disclosure

Ms Bailey presented this item and answered Directors’ questions. Following discussion, it was moved by Director Morgan, seconded by Director Wilson, and unanimously carried to approve the 2006/07 District continuing disclosure submission for transmittal to the Trustee for the 2004 COMB bonds.

H. LAIF Investments

Ms Bailey presented this item and answered Directors’ questions. At the request of President Shaikewitz Ms Bailey presented additional materials on the actual investments of LAIF with regard to the recent problems around the nation with sub prime investments. Ms Bailey presented a statement issued by LAIF that they do not now, nor have they ever invested in sub prime securities.

I. 2008/09 Budget Schedule

Ms Bailey presented this item and answered Directors’ questions.

10. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Special Districts Governance Seminar, February 7-8, 2008, Palm Springs

Directors Shaikewitz and Morgan reported on the subject seminar.

B. Central Coast Water Authority Meeting Of January 24, 2008

Director Shaikewitz reported on the subject meeting.

C. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF January 28,2008

Director Wilson reported on the subject meeting.

D. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee met soon after the last Board meeting and Directors have seen the bill stuffer which was produced. Another article has been submitted to the Montecito Journal but has not yet appeared.

E. OPERATIONS COMMITTEE

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

F. FINANCE COMMITTEE

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

11. AGENDA ITEM REQUESTS

Director Abel requested that the matter of whether Counsel is to attend Board meetings for the entire length of the meeting and a report from Counsel on the ACWA D.C. Conference be placed on the agenda for the next regular Board meeting scheduled for March 18, 2008.

12. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:15 pm.

Approved:

__________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary