REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, California

TUESDAY, April 15, 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

Ms Kate Rees, General Manager, CCRB

Mr. David Strauss, District customer

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 Morgan, seconded by Director Frye, and carried with Director Abel abstaining to approve the Minutes of March 18, 2008 as presented. It was moved by Director Frye, seconded by Director Morgan and unanimously carried to approve the remainder of the Consent Calendar as presented.

4. Time Certain 2:10 p.m.

A. Presentation of CCRB FY 2008/09 Budget

Kate Rees, CCRB General Manager, presented the CCRB FY 2008/09 budget and answered Directors’ questions. The Board gave direction with regard to this budget to their representative to CCRB, Director Abel.

5. LEGAL MATTERS

A. Recent and Pending Legal Matters REview

Mr. Wullbrandt had no legal items on which to report which were not covered elsewhere in the agenda.

B. Participation of Counsel at Board Meetings

The Board discussed which Board agenda items required the presence of Counsel during meetings. It was the consensus of the Board that Counsel remain in Board meetings for all items for which he or any Director believed his presence could be valuable, and leave the meeting at the time he judged appropriate.

6. Cachuma Matters

A. Conflict of Interest Disclosure and Waiver Agreement — Best, Best & Krieger Representation of CCRB and ID #1

President Shaikewitz postponed this item to the next session so that further background information on this matter could be compiled. The item will be considered in closed session at the May meeting of the Board.

B. Cachuma Conservation and RElease Board meeting of March 24, 2008

Director Abel reported on the subject meeting and called Directors’ attention to the materials provided in their agenda packets. Director Abel and Ms Rees reported on the threat of quagga mussels.

C. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF March 24, 2008

Director Abel reported on the subject meeting.

7. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

Mr. Mosby reported on the status of in-progress projects and the day-to-day operations of the District.

B. 2008/09 Water Supply and Demand 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 authorize the General Manager to contact other CCWA contractors to attempt to located and purchase supplemental water supplies and to contact the City of Santa Barbara about purchasing the 300 AF Juncal dam site agreement water.

C. Ordinance No. 89, an Ordinance of the Governing Board of Montecito Water District Placing Limitations on Water Distribution Associated with Subdivision of Land and with Improvements to Land Within the District

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

President Shaikewitz opened the meeting to public comment at 4:20 p.m. There being no members of the public present who wished to comment on the Ordinance, President Shaikewitz closed the public comment period at 4:20.

Following discussion, it was moved by Director Abel, seconded by Director Morgan, and carried by the following roll-call vote to approve Ordinance No. 89 as presented and approve posting the notice of exemption and publication of the Ordinance in a newspaper of local circulation:

AYES: Directors Abel, Frye, Morgan, and Shaikewitz

NOES: None

ABSTAIN: Director Wilson

ABSENT: None

Director Wilson requested that the Board receive regular reports on Certificates of Water Service Availability issued under this Ordinance.

D. Water Works Operations Report

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

8. District Business Report

A. Water Sales Report for March 2008

Ms Bailey presented this item and answered Directors’ questions.

B. February 2008 Monthly Revenues and Expenditures

Ms Bailey presented this item and answered Directors’ questions.

Counsel left the meeting at this point

8. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meeting Of March 28, 2008

Director Shaikewitz reported on the subject meeting.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF march 24,2008

Director Wilson reported on the subject meeting.

C. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee had not yet met, but was scheduled to meet on April 16.

D. OPERATIONS COMMITTEE

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

E. FINANCE COMMITTEE

Directors Wilson and Morgan reported that they had met with the bond brokers and discuss the refinancing of the 98 bonds. All other activities of the Finance Committee had been covered elsewhere in the agenda.

12. AGENDA ITEM REQUESTS

There were no requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for May 20, 2008.

13. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:26 pm.

Approved:

__________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary