REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, March 16, 2010

2:00 P.M.

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

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

Directors Present:

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

Directors Absent:

Director Samuel Frye

Staff Present:

Tom Mosby, General Manager

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guest Present

David Atkinson, Bella Vista Drive (for items 8-E & 8-F only)

Cathy Atkinson, Bella Vista Drive (for items 8-E & 8-F only)

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 Shaikewitz, seconded by Director Wilson, and unanimously carried to approve the Consent Calendar with amendments to the minutes of February 19 and March 2, 2010.

4. Appeals

A. Appeal by Ms Annabelle Brownell / Account No. 15-0210-03

Ms Brownell was not present. This item was presented by the Appeals Committee. The Committee and Mr. Mosby answered Directors’ questions. Following discussion it was moved by Director Shaikewitz, seconded by Director Abel, and carried with Director Wilson abstaining to apply the SFR block 1 rate to water used above the historical average on this account for the month of October 2009 and apply a credit of $28.75; and reverse the late charge of $24.71 incurred on the account when the auto-pay payment was reversed for insufficient funds due to the unexpectedly high bill and short time-period between the reversal and the due-date resulted in a late payment.

B. Appeal by Mr. & Mrs. Dabney / Account No. 09-2755-02

The Dabneys were not present. This item was presented by the Appeals Committee. The Committee and Mr. Mosby answered Directors’ questions. Following discussion it was moved by Director Shaikewitz, seconded by Director Abel, and unanimously carried, with Director Morgan abstaining, to apply the SFR block 1 rate to water used above the historical average on this account for the month of December 2009 and apply a credit of $112.75

5. Cachuma MATTERS

A. COMB meeting of February 22, 2010

Director Morgan reported on the subject meeting.

B. CCRB meeting of February 22, 2010

Director Morgan reported on the subject meeting, where Director Lauren Hanson of Goleta Water District was elected CCRB President.

C. Draft CCRB Budget Review and Recommendations

Director Morgan and Mr. Mosby introduced this item and answered Directors’ questions. No motion was necessary, the staff recommendation having been already implemented by CCRB.

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. He gave a brief review of his recent attendance at the ACWA to Washington DC Conference on behalf of the Cachuma Member Units.

B. Closed Session – Pursuant to Government Code Section 54956.9(a), Existing Litigation, Montecito Water District Et Al vs. Penfield & Smith Engineers et al; Santa Barbara Superior Court Case Number 1303752

The Board adjourned to closed session on the above matter at 2:53 p.m.

The Board reconvened to open session at 3:33 p.m. President Morgan stated that no reportable actions were taken.

7. District Business Report

A. Quarterly Budget Report

Ms Bailey being absent, Mr. Mosby presented this report and answered Directors’ questions.

B. 1998A Bond Refinancing Update

Mr. Mosby brought the Board up to date on the status of the refunding of the 1998A bonds. District had not yet received its S&P rating, but it will be distributed to Directors when it is received.

C. Late Charge Procedures

Director Morgan, as a member of the Finance Committee, asked that this item be reviewed by the Appeals Committee before coming before the Board.

D. January 2010 Revenue and Expense Report

Director Morgan presented this report.

E. Water Sales Report for February 2010

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

8. district Operations Report

A. Resolution No. 2067 – APPROVING AN AGREEMENT WITH THE UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION FOR THE TRANSFER OF TITLE OF FEDERALLY OWNED DISTRIBUTION SYSTEM AS PART OF THE CACHUMA PROJECT (Summerland)

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

Following discussion, it was moved by Director Shaikewitz, seconded by Director Abel, and carried by the following roll-call vote to adopt Resolution No. 2067, approving the transfer of title of the Summerland distribution system from the USBR to MWD:

AYES: Directors Abel, Morgan, Shaikewitz, and Wilson

NOES: None

ABSENT: Director Frye

ABSTAIN: None

B. Proposed Lambert Road Service Area Reorganization – Customer Water Usage Analysis

Mr. Mosby, Director Shaikewitz, representing the Operations Committee, and Mr. Wullbrandt presented this item and reviewed with the Board five possible scenarios regarding the proposed transfer of nine properties known as the Edgewood Ranch Properties from the MWD service district to the CVWD service district.

Following discussion, it was the consensus of the Board to eliminate alternatives 1 and 4, and the possibility of a cost share arrangement and refer the item back to the General Manager and Operations Committee for further analysis, along with consideration of managed rates for non-potable groundwater.

C. COMB South Coast Conduit Metering analysis and results – Carpinteria reach

President Morgan presented this item and answered Directors’ questions. Following discussion it was moved by Director Shaikewitz, seconded by Director Abel, and carried with Director Wilson abstaining to notify the COMB board and the Carpinteria Valley Water District that the metering of COMB water deliveries to CVWD should occur at the Ortega south flow meter, with adjustments made for MWD use at its turnouts connected after the Ortega Reservoir. It was the consensus of the Board that, after completion and review of the SCC metering analysis, a joint MWD/CVWD committee meeting should be called to discuss and finalize adjustments/corrections to past Cater billings.

D. Barker Pass Pump Station – Proposal from Brian Smith for Electrical Design Services

Mr. Mosby introduced this item and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Abel, and unanimously carried to approve the proposal from Smith Engineering Associates for electrical engineering design services associated with the Barker Pass Pump Station upgrade in the amount of $9,400.

E. Agreement for grant of Easement – 2790 Bella Vista Drive, Atkinson

Mr. Mosby introduced this item and he and Mr. & Mrs. Atkinson answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Wilson, and carried unanimously to approve execution and recording of the agreement, subject to review and approval by counsel, between MWD and Cathy & David Atkinson for grant of easement for an existing security gate serving 2790 Bella Vista Drive, located on the District’s BVTP property. (Approved by the Board in 1998 and never formally drawn up.)

F. Resolution No. 2068 – Initiating Proceedings for Annexation to the Montecito Water District — Bella Vista Annexation — 2790 Bella Vista Drive and District-Owned Bella Vista Properties

Mr. Mosby presented this item and answered Directors’ questions. It was noted that a District meter can be purchased by the Atkinsons at this point in the process, and will be installed when the annexation is complete. Following discussion, it was moved by Director Shaikewitz, seconded by Director Abel, and carried by the following roll-call vote to adopt Resolution No. 2068 initiating annexation of certain District-owned properties and one adjacent property owned by the Atkinsons, into the service area of the District.

AYES: Directors Abel, Morgan, Shaikewitz

NOES: None

ABSENT: Director Frye

ABSTAIN: Wilson

G. Unaccounted Water and Action Status REport

This report was not discussed by the Board; it was allowed to stand as presented in the agenda packet.

H. Water Works Operation Report

There was no Water Works Operation Report; not all of the necessary data had been received from COMB.

9. GENERAL MANAGER’S REPORT

A. Report on Potential Quagge infestation, San Luis Reservoir

This report was not discussed by the Board; it was allowed to stand as presented in the agenda packet.

B. Monthly Operations Report (Oral)

(1) Distribution Department

(2) Treatment Department

(3) miscellaneous

Mr. Mosby reported on District activities and operations not covered elsewhere in the agenda.

10. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meeting of February 25, 2010 and CCWA Operations Committee meeting of March 11, 2010