REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, March 17, 2009

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

Karl Meier, Engineering Manager

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

Charles Hamilton, Carpinteria Valley Water District

2. PUBLIC FORUM

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

Director Abel spoke briefly about Carol Valentine, former president of the Board, who passed away on March 16, 2009. She then asked the Board to join her in a moment of silence. The Board acknowledged Carol’s great contribution to the District.

3. CONSENT CALENDAR

Director Abel asked that the minutes of February 17, 2009 be removed from the Consent Calendar for separate vote. It was moved by Director Morgan, seconded by Director Shaikewitz, and carried with Directors Abel and Frye abstaining because they were not present at the subject meeting. Following discussion, it was moved by Director Abel, seconded by Director Morgan, and unanimously carried to approve the remainder of the Consent Calendar as presented.

4. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

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

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, with Mr. Hamilton joining them, adjourned to closed session on the above item at 2:23 p.m.

The Board reconvened in open session at 2:43 p.m. President Shaikewitz reported that the Board had received a report from Counsel.

5. Cachuma Matters

A. Cachuma Conservation and RElease Board meetings of January 26 and February 23, 2009

Director Abel and Director Frye reported on the subject meetings.

B. CACHUMA OPERATION AND MAINTENANCE BOARD meetings of January 26 and February 23, 2008

Director Abel and Director Frye reported on the subject meetings.

C. ACWA Washington D.C. Conference, February, 2009

Counsel Wullbrandt reported on efforts in seeking congressional attention for local projects while he was in Washington D.C. on behalf of CCRB (and MWD as a member agency). He reported that Congress had voted to fund the Pacific Coast Salmon Recovery Fund for 2009.

6. Board of Directors

A. Resolution No. 2053 — Directors’ Compensation

This item was continued from the February 17, 2009 agenda.

It was moved by Director Wilson, seconded by Director Frye, and carried by the following roll-call vote to approve Resolution No. 2053, setting the rate for Directors’ attendance at meetings at $110.

AYES: Abel, Frye, Shaikewitz, and Wilson

NOES: Morgan

ABSTAIN: none

ABSENT: none

7. district Operations Report

A. Bella Vista Treatment Plant Filter Maintenance Project Summary Report

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

B. Juncal Dam – Division of Safety of Dams Inspection Report

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

C. Birnam Wood Groundwater Project — Well Test Results for East Valley Ranch Wells 6 and 8

Mr. Mosby and Mr. Meier presented this item and answered Directors’ questions. Following discussion it was moved by Director Frye, seconded by Director Morgan, and unanimously carried to appropriate additional funds for this project in the amount of $2,410 for additional costs incurred during pump testing from the Water Supply Augmentation budget and appropriate an amount not to exceed $10,500 from the 1998A Bond funds to fully equip East Valley Ranch Well No. 6 with a new submersible pump and all associated electrical and mechanical equipment required to place this well into service.

D. Water Works Operations Report, February 2009

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

8. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

Mr. Mosby updated the Board on District projects and activities not covered elsewhere in the agenda.

9. District Business Report

A. 2009-10 Budget Calendar

Ms Bailey presented this item and answered Directors’ questions.

B. Cater Treatment Budget Augmentation

Mr. Mosby and 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 appropriate funds in the amount of $550,000 from the operating reserve to pay the additional Cater water treatment costs attributed to the effects of the Zaca fire on Cachuma water quality.

C. ACWA/JPIA Programs

Ms Bailey presented this item and answered Directors’ questions.

D. Participation in Statewide Proposition 84 Process

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. Authorize the General Manager to execute the Proposition 84 Memorandum of Understanding subject to review and approval of the MOU by District Counsel and funding participation by the other partners within the Montecito Water District service area;

2. Approve MWD’s participation in the amount of $3,110 (or 1/3 of the total estimated cost of $9,325) for the Montecito District area in the Proposition 84 process. Note this participation does not guarantee grant of any DWR funds available under prop 84 but will prepare the Regional Acceptance documentation necessary for qualification and project identification under the Proposition 84 process;

3. Appropriate funds in the amount up to $3,110 from operating reserves for this Proposition 84 first step in the program submittal process;

4. Authorize the General manager to request, in writing, participation from the Montecito and Summerland Sanitary Districts, the other two identified Montecito and Summerland community partners, for a proportionate share of costs in this process.

E. Water Sales Report for February 2009

Ms Bailey presented this item and answered Directors’ questions.

F. January 2009 Revenue and Expense Report

Ms Bailey presented this item and answered Directors’ questions.

G. Notice Regarding Proposed Resolution Relative to Exemption from Proposition 4 Spending Limitations

Ms Bailey presented this item and Director Frye read the following into the minutes:

A resolution will be presented to the Board for adoption at a regular Board meeting of June 16, 2009 (which meeting for adoption must be at least 15 days after this statement), which resolution shall establish that the District’s various user fees, rates and charges for Fiscal Year 2009-10 do not exceed the costs reasonably borne by the District for providing the services for which the fees, rates and charges were made.

10. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meetings Of February 26 and March 12, 2009

Director Shaikewitz reported on the subject meetings.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF February 23,2009

Director Wilson reported on the subject meetings.

C. PUBLIC INFORMATION COMMITTEE

Director Abel distributed a letter which will be mailed to the top 200 residential users in the District. She reported that the Public Information Committee met on March 2 and discussed public information plans for the remainder of the water year. They hope to publish two more newsletters before the water year is over, the first will be worked on in the next meeting. The second, mandated for publication in July, will be the water quality report. They have also discussed doing “bill stuffers” in-house.

D. OPERATIONS COMMITTEE

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

E. FINANCE COMMITTEE

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

F. Ad Hoc Water Supply Committee

Directors Morgan and Shaikewitz reported that the Ad Hoc Water Supply Committee has considered the District’s participation in the Dry Year Water Purchase Program, which has cost the District $2500 for first stage. They are also exploring the option of detaching a portion of MWD and annexing it to Carpinteria Valley Water District (CVWD). They will meet with representatives of CVWD next week to discuss this possibility.

11. AGENDA ITEM REQUESTS

Director Abel asked that the Board be open to setting a special meeting to hear an upcoming appeal since this appeal could be very time consuming and not be appropriate within a meeting dealing with numerous other items. There were no other requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for April 21, 2009.

12. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:04 p.m.

Approved:

__________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary