REGULAR MEETING Minutes

BOARD OF DIRECTORS

Montecito Water District

Montecito Fire Protection District

595 San Ysidro Road

and

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, California

TUESDAY, February 20, 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

Tom Mosby, Engineering Manager

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

Guillaume Doane, Montecito Journal

J’Amy Brown, SB Independent

Eric Edmondson

Averell Edmondson

W.D. Morgan

Martha Scheck

Virginia Hunter

Martha Smilgis

David Strauss

Cynthia Stebbins

William Abel

2. PUBLIC FORUM

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

3. Time Certain Item: 2:00 p.m.

A. PUBLIC HEARING: Consideration of Revisions to WAter Rates and Charges, AND ANY OBJECTIONS OR PROTESTS TO THE PROPOSED Revisions.

President Abel introduced this item at 2:02. Mr. Roebuck presented the staff report on this item. Following Mr. Roebuck’s report, Mr. Wullbrandt explained the purpose of the public hearing.

President Abel then confirmed that all conditions for the public hearing had been met, and opened the public hearing at 2:15 p.m.

Members of the public who addressed the Board on this item:

Martha Smilgis, owner

Virginia Hunter, owner

David Strauss, owner

Guillaume Doane, Montecito Journal, Tenant

Martha Scheck, owner

Cynthia Stebbins, owner

President Abel, Mr. Roebuck, and Mr. Wullbrandt responded to the questions and concerns of those who spoke. When all members of the public who wished to speak on this item had been heard, President Abel closed the public hearing at 3:00 p.m.

Mr. Roebuck advised the Board that the protests received constituted fewer than 50 percent of the property owners in the District, and the Board was therefore permitted under law to take action on Resolution 2024.

1. Resolution No. 2024 adopting water rates and service charges.

Following Board discussion, it was moved by Director Shaikewitz, seconded by Director Wilson, and carried by the following roll-call vote to approve Resolution No. 2024 as presented.

AYES: Directors Abel, Shaikewitz, and Wilson

NOES: Director Frye

ABSENT: None

ABSTAIN: None

Board adjourned at 3:15 p.m. to reconvene in the Montecito Water District Board Room at 3:25 p.m.

4. CONSENT CALENDAR

Following discussion, it was moved by Director Shaikewitz, seconded by Director Frye, and unanimously carried to approve the minutes of January 16, 2007 as corrected, and the remainder of the Consent Calendar as presented.

5. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

Mr. Wullbrandt brought the Board up to date on legal matters of interest to MWD.

6. Cachuma Matters

A. Cachuma Conservation and RElease Board meeting of January 22, 2007

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

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF January 22, 2007

Director Abel reported on the subject meeting.

7. Board of Directors

A. Dedication of New Front Garden Area to Director Robert W. Puddicombe

Director Abel presented this item. Following discussion, it was moved by Director Shaikewitz, seconded by Director Wilson, and unanimously carried to dedicate the new front garden area to the memory of Director Robert W. Puddicombe, and memorialize the action with a garden plaque and a ceremony.

8. District Business Report

A. Auditor Communication Changes

Ms Bailey presented this item and answered Directors’ questions.

B. Insurance Coverage

Ms Bailey presented this item and answered Directors’ questions. Following discussion, it was moved by Director Frye, seconded by Director Shaikewitz, and unanimously carried to authorize staff to contact the ACWA-JPIA to increase the District’s fidelity bond from $100,000 to $2,000,000.

C. ACWA Joint Powers Insurance Authority Recognition

Ms Bailey presented this informational item.

D. Second Quarter investment Report

Ms Bailey presented this item and answered Directors’ questions.

E. Six Month Budget Report

Ms Bailey presented this item and answered Directors’ questions.

9. district Operations Report

A. Ortega Reservoir Project Status Report

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

B. WATER SUPPLY REPORT – PURCHASE OF STATE WATER

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

C. WATER DISTRIBUTION SYSTEM WATER MAIN BREAK REPORT – JANUARY 2007

Mr. Roebuck presented this item.

D. DOULTON WEIR BOX TRANSMISSION PIPING UPGRADE AND WEIR REMOVAL – PROJECT STATUS AND FUNDING

Mr. Roebuck presented this item. Following discussion, it was moved by Director Frye, seconded by Director Wilson, and unanimously carried to appropriate funds in the amount of $16,500 from the 1998A Bond funds for payment of costs for the conversion of the Doulton weir from a sedimentation basin to hard piping.

E. FINAL DISTRIBUTION SYSTEM HYDRAULIC MODEL ANALYSIS AND REPORT – RBF CONSULTANTS

Mr. Roebuck and Mr. Wullbrandt answered Directors’ questions on this item. Following discussion, it was moved by Director Frye, seconded by Director Shaikewitz, and unanimously carried to accept the Distribution System Hydraulic Model Analysis and Report prepared by RBF Associates.

------------------------------------ Legal Counsel Departed at this point------------------------------------

10. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

Mr. Roebuck presented his list of ongoing projects.

B. Water Sales Report for January 2007

Ms Bailey presented this item and answered Directors’ questions.

C. December 2006 Monthly Revenues and Expenditures

Ms Bailey presented this item and answered Directors’ questions.

D. Water Works Operation Report for January 2007

Mr. Roebuck presented this item.

11. DIRECTOR AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meeting Of January 25, 2007

Ms Bailey reported on the subject meeting.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF January 22, 2007

Director Wilson reported on the subject meeting.

C. Lafco Meeting of February 1, 2007

Director Wilson reported on the subject meeting.

12. COMMITTEE REPORTS/RECOMMENDATIONS

A. OPERATIONS COMMITTEE

Directors Abel and Frye stated that the activities of the Operations Committee had been covered elsewhere in the meeting.

B. FINANCE COMMITTEE

Director Shaikewitz noted that the Finance Committee had discussed the subject of Directors’ compensation. He requested that the issue be revisited at a later Board meeting. President Abel requested that the Finance Committee develop a recommendation on this matter to bring to the Board.

Director Shaikewitz also stated that he had requested that staff keep notes on how much time is spent dealing with Counsel. President Abel noted that such direction to staff needs to be voted by the Board and should be placed on the agenda of a future meeting.

C. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee had not met in January, but was scheduled to meet on March 2, 2007.

13. AGENDA ITEM REQUESTS

There were no requests from Directors for items, other than those noted above, to be placed on the agenda for the next regular Board meeting scheduled for March 20, 2007.

14. ADJOURNMENT

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

Approved:

__________________________

Jan E. Abel, President

Attest:

__________________________________

Robert L. Roebuck, Secretary