REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, April 20, 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, 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

Guest Present

David Strauss, District Customer

2. PUBLIC FORUM

Mr. Strauss requested that the Board produce some publicity on the effectiveness of the conservation rate structure and remarked on the importance of transparency in any Board deliberations dealing with rates and charges.

President Morgan responded that the matter would be referred to the Public Information Committee.

3. CONSENT CALENDAR

The minutes of the meetings of March 16, 22, and 24 were set aside to be dealt with separately. Following discussion it was moved by Director Frye, seconded by Director Shaikewitz, and unanimously carried to approve items of D & E of the Consent Calendar as presented. It was moved by Director Shaikewitz, seconded by Director Frye and carried with Director Wilson abstaining to approve the Minutes of March 16 as presented. It was moved by Director Shaikewitz, seconded by Director Frye, and carried with Director Wilson abstaining to approve the minutes of March 22 as presented. It was moved by Director Frye, seconded by Director Shaikewitz and carried with Director Wilson abstaining to approve the minutes of March 24 as corrected.

4. Appeals

A. Appeal by Mr. & Mrs. Moelleken / Account No. 09-2755-02

Director Abel introduced this item for the Appeals Committee and answered Directors’ questions. Following discussion, it was moved by Director Frye, seconded by Director Abel, and unanimously carried to apply the single-family residential block 1 rate to all water use on the Moelleken account during November and December 2009 that was over and above the “historical use” and issue a credit of $288.50 on the account to cover the difference between the block 1 rate and the charges that were paid.

B. Appeal by Dr. Aaron Budgor / Account No. 09-2400-02

Director Abel introduced this item for the Appeals Committee and answered Directors’ questions. Following discussion, it was moved by Director Abel, seconded by Director Shaikewitz, and unanimously carried to apply the single-family residential block 1 rate to all water use on the Budgor account during February 2010 that was over and above the “historical use” and issue a credit of $178.75 on the account to cover the difference between the block 1 rate and the charges that were paid.

C. Appeal By Mr. Robert Ornstein / Account No. 16-3499-02

Director Abel introduced this item for the Appeals Committee and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Frye, and unanimously carried to apply the single-family residential block 1 rate to all water use on the Ornstein account during February 2010 that was over and above the “historical use” and issue a credit of $45.75 on the account to cover the difference between the block 1 rate and the charges that were paid.

D. Appeal by Mr. & Mrs. Fell / Account No. 17-3035-00

Director Abel introduced this item for the Appeals Committee and answered Directors’ questions. Following discussion, it was moved by Director Abel, seconded by Director Shaikewitz, and unanimously carried to apply the single-family residential block 1 rate to all water use on the Fell account during February 2010 that was over and above the “historical use” and issue a credit of $1,107.00 on the account to cover the difference between the block 1 rate and the charges that were paid.

5. Cachuma MATTERS

A. COMB meeting of March 22, 2010

Director Morgan reported on the subject meeting.

B. CCRB meeting of March 22, 2010

Director Morgan reported on the subject meeting.

6. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

Mr. Wullbrandt had no legal and legislative matters of interest to report to the Board.

B. Authorization to Review and Approve Legal Invoices

Mr. Mosby introduced this item and outlined for the Board the process which had been established.

7. District Business Report

A. 2010/11 Budget Schedule

Ms Bailey introduced this item and answered Directors’ questions. It was noted that a tentative Budget workshop is on the schedule, and the Board may wish to confirm a date for a workshop. President Morgan asked that Ms Bailey return to the Board with a list of proposed dates from which the Directors can choose. Ms Bailey noted that a date within the next two weeks would be best.

B. Notice Regarding Proposed Resolution Relative To Excemption from Proposition 4 Spending Limitations

Mr. Mosby read the following statement into the minutes:

“A resolution will be presented to the Board for adoption at a regular Board meeting of June 15, 2010 (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 2010-11 do not exceed the costs reasonably borne by the District for providing the services for which the fees, rates and charges were made.”

C. COMB Refund

Ms Bailey introduced this item and answered Directors’ questions.

D. 1998A Bond Refinancing Update

President Morgan and Ms Bailey introduced this item and answered Directors’ questions.

E. Late Charge Procedures

Director Abel introduced this item for the Appeals Committee and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Abel, and carried on a vote of four to one to grant the General Manager and the Business Manager the discretionary authority to adjust the late charges or penalties on a case-by-case basis for a one-time-per-twelve-month period for customers who make such a request, subject to the stipulations listed in the staff report as modified.

F. Water Sales Report for March 2010

Ms Bailey presented this report and answered Directors’ questions.

G. February 2010 Revenue and Expense Report

Ms Bailey presented this report and answered Directors’ questions.

8. district Operations Report

A. Unaccounted Water and Action Status REport

Mr. Mosby presented this item and answered Directors’ questions. Following discussion it was moved by Director Frye, seconded by Director Shaikewitz, and unanimously carried to approve the purchase of leak detection equipment for a not-to-exceed amount of $6,000 with staff returning to the Board with a full report on the program and personnel implemented for leak detection surveys throughout the District.

B. Water Supply Report – Water Years 09/10 and 10/11

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

(Director Wilson left the meeting at this point.)

C. Proposed MWD/CVWD Service Boundary Reorganization Update

Mr. Mosby presented this item and answered Directors’ questions. Following discussion it was the consensus of the Board that staff should bring back to the Board some further iterations of alternative #4, to explore the different types of water use and classifications on the properties in question in light of Ordinance No. 90.

D. Proposed New District Storage Building and Cost/Use Share with MERRAG

Mr. Mosby introduced this item and answered Directors’ questions. Following discussion the item was postponed to give staff time to gather some further information and documentation.

E. Bella Vista Annexation Status Update

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

F. Water Works Operation Report

Mr. Mosby presented this report and answered Directors’ question.

9. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

(1) Distribution Department

(2) Treatment Department

(3) miscellaneous

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

10. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meeting of March 25, 2010

Director Shaikewitz reported on the subject meeting. He requested direction from the Board on his vote on salary increases at CCWA. It was the direction of the Board that he should vote for no salary increases.

B. OPERATIONS COMMITTEE

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

C. FINANCE COMMITTEE

Directors Morgan and Frye (who substituted for Director Wilson at the last meeting) reported that the activities of the Finance Committee had been covered elsewhere in the agenda except that a new employee handbook is being produced.

D. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee had not met since the last Board meeting.

11. 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 18, 2010.

12. ADJOURNMENT

There being no further business to come before the Board, the meeting was adjourned at 5:20 p.m.

Approved:

_____________________________

W. Douglas Morgan, President

Attest:

__________________________________

Tom Mosby, Secretary