REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, California

TUESDAY, April 17, 2007

2:00 P.M.

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

President Abel called the meeting to order at 2:10 p.m.

Directors Present:

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

Directors Absent:

None

Staff Present:

Bob Roebuck, General Manager

Toni Bailey, Business Manager

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

David Strauss, District customer

2. PUBLIC FORUM

Mr. Strauss made comments on several items.

3. CONSENT CALENDAR

Following discussion, it was moved by Director Morgan, seconded by Director Frye, and unanimously carried to approve the Consent Calendar as presented and the minutes of March 20, 2007 as amended.

4. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

Mr. Wullbrandt brought the Board up to date on his recent activities and legal matters of interest to the District. In particular, he noted that legislation has been introduced to provide clear process for application of Prop 218.

(Items 9-C and 9-D were discussed at this point in the agenda)

5. Cachuma Matters

A. Cachuma Conservation and RElease Board meeting of March 26, 2007

Director Abel reported on the subject meeting and called the Directors’ attention to the materials included in their agenda packets. She noted that CCRB Manager Kate Rees will be presenting the CCRB budget to the MWD Board next month.

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF March 26, 2007

Director Abel reported on the subject meeting. COMB will celebrate its 50^th anniversary on May 17.

6. Board of Directors

A. Directors’ Compensation

The Finance Committee brought this matter to the attention of the Board. Following discussion, it was the consensus of the Board to direct staff to prepare a new ordinance and policy for Board adoption at the July meeting.

Legal Counsel left at this point

7. District Business Report

A. Employee Benefits

Ms Bailey introduced this item and answered Directors’ questions. Following discussion, it was moved by Director Frye, seconded by Director Morgan, and unanimously carried to approve a $40,000 life insurance benefit for District employees (with the exception of the General Manager) effective with the 2007/08 budget and leave health insurance, retirement, and dental benefits as they are.

B. California Bank and Trust – Contract for Deposit of Monies

Ms Bailey introduced this item and answered Directors’ questions. Following discussion, it was moved by Director Frye, seconded by Director Morgan, and unanimously carried to ratify the transfer of the Department of Water Resources Loan Reserve Funds with California Bank and Trust into a higher interest money market account.

C. FY 2007/08 Budget Calendar

Ms Bailey presented this item and answered Directors’ questions.

D. Water Sales Report for March 2007

Ms Bailey presented this item and answered Directors’ questions.

E. February 2007 Monthly Revenues and Expenditures

Ms Bailey presented this item and answered Directors’ questions.

F. Water Availability CHARGE Schedule for 2007/08

Ms Bailey presented this item and answered Directors’ questions.

8. district Operations Report

A. Ortega Reservoir Project Status Report (oral)
1. Ortega Committee Report

Mr. Roebuck and the Ortega Committee members reported on the status of the Ortega Reservoir Project.

B. Treatment Plant Clarifier Media Replacement

Mr. Roebuck introduced this item and answered Directors’ questions. Following discussion, it was moved by Director Frye, seconded by Director Morgan, and unanimously carried to authorize funding from unrestricted funds for the project to remove and replace the upflow clarifier plastic media for the Bella Vista and Doulton Treatment plants in the amount of $112,000, ratify the decision of the Operations Committee in authorizing the General Manager to proceed with this work, and Direct the General Manager to investigate the recovery of a portion of costs from the manufacturer due to possible undisclosed material quality defect in the plastic media.

C. FY 2006/07 Capital Improvement projects Update

This item reviewed the status of some of the 2006/07 Capital Improvement Projects.

D. Water Works Operation Report for March 2007

Mr. Roebuck presented this item.

9. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

This item reviewed the status of District projects not mentioned elsewhere on the agenda.

B. Tour of Juncal DAm, Jameson Lake, and Alder Creek

Mr. Roebuck reminded the Board of this upcoming tour.

C. Steelhead Recovery Planning Efforts

(This item was discussed after Item 4-A) Mr. Roebuck presented this item to the Board and he and Mr. Wullbrandt answered Directors’ questions.

D. Certificates of Participation – Grand Jury Report

(This item was discussed, following item 9-C, after Item 4-A) Mr. Roebuck presented this item, and he and Mr. Wullbrandt answered Directors’ questions.

E. Water Future Workshops (Oral)

Mr. Roebuck and the Board discussed the scheduling of three future workshops.

F. Public Hearing — Resolution No. 2026 Required by CCWA Resolutions 92-2 and 92-11

Mr. Roebuck presented the staff report on this item. President Abel opened the public hearing at 5:22 p.m. There were no members of the public present who wished to present testimony on this item. President Abel closed the public hearing at 5:23 p.m.

Following Board discussion, the vote on the resolution was delayed until certain questions could be answered. The item will come before the Board at the next meeting.

10. DIRECTOR AND STAFF MEETING REPORTS

A. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF March 26,2007

Director Wilson reported on the subject meeting.

B. Central Coast Water Authority Meeting of March 22, 2007

Director Shaikewitz reported on the subject meeting. A CCWA orientation tour is planned for Director Shaikewitz, who is a new representative to this organization, and the other new MWD Directors are also invited to participate in the tour.

11. COMMITTEE REPORTS/RECOMMENDATIONS

A. OPERATIONS COMMITTEE

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

B. FINANCE COMMITTEE

Director Morgan reported that the Finance Committee had discussed budget goals.

C. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the newsletter will be going to press in the next few days and should be in customers’ mailboxes by late April or the first week in May. The Committee also reviewed the Water Availability Charge notification postcard.

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 15, 2007.

13. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:53 pm.

Approved:

__________________________

Jan E. Abel, President

Attest:

__________________________________

Robert L. Roebuck, Secretary