REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, April 21, 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

Chip Wullbrandt, District Counsel

Alexis Nagle, Finance Specialist

Lois Werner, Recording Secretary

Guests Present

David Yawitz, St. Louis, MO

2. PUBLIC FORUM

Mr. David Yawitz, a former member of the Board, was introduced to the Board by Director Abel, with whom he served. Mr. Yawitz spoke about serving on the Allocations and Appeals Committees during the last major drought in the late 1980s and early 1990s. At that time, a household was only assured 12 HCF of water per month for basic sanitation, additional allocations were based on a complicated formula applied to each account individually.

3. APPEALS

A. APPEAL BY Mr. Ray Mahboob / Account No. 1756332

Director Shaikewitz presented this item for the Appeals Committee and Mr. Mosby presented the staff report. Following discussion, it was moved by Director Frye, seconded by Director Morgan, and carried on a vote of three to two, that the District reimburse the Mahboobs for ½ the cost of the plumbing repairs to their service line in the amount of $123.09, and find the Mahboobs responsible for 41 units of the 126-unit October water bill at the ordinary tiered rates, with the remaining 85 units billed at the SFR block 1 rate, for a credit of $76.75.

B. APPEAL of Account Classification BY Mr. Chris Bagdasarian / Account No. 1633200

Director Frye, Appeals Committee alternate, presented this item for the Appeals Committee. Mr. Wullbrandt noted that the aerial photo presented to the Board was part of the public record.

After discussion, the findings of the Board were: That the use of the property is still principally and predominantly agriculture, based on the following:

That the use of the vast majority of the property is either fallow agricultural land, active qualifying agricultural, or it remains in native vegetation;

The entire easterly area of the property is in active qualifying agriculture (commercially grown and harvested floriculture) or fallowed agriculture which could be replanted to meet the two contiguous acre minimum requirement;

The residential use of the property is a relatively minor part of the property use and only involves approximately .25 acres of the 10-acre property;

The residential use involves relatively minimal landscaping, with no swimming pool, large lawn, water features, etc.;

The residential use area of the property is separated from the agricultural areas by a road, and the agriculture does not appear to serve as residential landscaping. The only structure on the east side of the property is dedicated to agricultural purposes; and

The water use over the last two years has been low due to the fallowed agricultural land.

It was moved by Director Abel, seconded by Director Frye, and unanimously carried to establish a final cutoff date of May 31 for the property owners to bring the property into conformity with the 2-acre requirement of Ordinance 90. All water billed to the property until it has been confirmed to meet the 2-acre requirement will be billed at the single-family residential (SFR) rate. If the property meets the 2-acre standard by May 31, 2009 it will be reinstated at the agricultural rate, if not, it will be permanently reclassified as SFR. It was also the consensus of the Board that if the property retained its agricultural classification, and later implemented new non-agricultural land uses that change the principal and predominant use of the land it would be subject to reclassification.

4. CONSENT CALENDAR

Following discussion, it was moved by Director Abel, seconded by Director Morgan, and unanimously carried to approve the Consent Calendar as presented.

5. 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

C. Closed Session: Conference with Legal Counsel Relative to Existing Litigation: Pending STate Water Resources Control Board Cachuma Project Water Right Hearing on Water Right Permits 11308 and 11310, Pursuant to Government Code Section 549856.9(b)

The Board adjourned to closed session on the above items at 3:03 p.m.

The Board reconvened in open session at 4:10 p.m. President Shaikewitz reported that the Board had received a report from Counsel.

6. Cachuma Matters

A. Cachuma Conservation and RElease Board meeting of March 23, 2009

Director Abel reported on the subject meeting and called the Directors’ attention to the materials provided in their agenda packets.

B. CACHUMA OPERATION AND MAINTENANCE BOARD meeting of March 23, 2008

Director Abel reported on the subject meeting.

7. district Operations Report

A. 1395 oak creek canyon highline relocation project – proposed filing of notice of exemption from environmental review

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 posting the Notice of Exemption for the subject project and approve the water main relocation project scope of work as presented.

B. Distribution System Water Quality – Sampling Results for 2009 first QUARTER trihalomethane and haa5

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

C. 08/09 WATER SUPPLY Condition UPDATE

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

D. Proposition 84 Participation – Status Update

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

E. Jameson Lake Phone Line Inspection and REpairs

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

F. Water Works Operation Report

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. District Employee REsidence REfurbishment

Mr. Mosby presented this item and answered Directors’ questions. Following discussion it was moved by Director Morgan, seconded by Director Frye, and unanimously carried to appropriate additional funding in the amount of $10,000 from Operating Reserves to cover remaining costs in the refurbishment of the employee residence at 585 San Ysidro Rd.

B. Proposed MWD/CVWD Service Boundary Reorganization

Mr. Mosby presented this item and answered Directors’ questions. The Board asked staff to continue to pursue this issue and look at alternate configurations.

C. ACWA/JPIA Coverage for Directors

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

D. Water Sales Report for March 2009

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

E. February 2009 Revenue and Expense Report

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

10. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meeting Of March 26, 2009

Mr. Mosby reported on the subject meeting, which he attended as alternate for Director Shaikewitz.

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

Director Wilson had nothing to report on the subject meeting.

C. PUBLIC INFORMATION COMMITTEE
1. 08/09 Public Information Budget Augmentation

Director Abel presented this item. Following discussion it was moved by Director Shaikewitz, seconded by Director Frye, and unanimously carried to appropriate additional funding from Operating Reserves in the amount of $13,600 for preparation, publishing, and mailing of the two remaining newsletters in the 08/09 fiscal year.

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 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 met April 20. The Committee encouraged the GM to issue a response to the UCSB rev DEIR, because MWD has become a “responsible agency” in this document. The committee has monitored the dry year water purchase program and canceled MWD’s reserved purchase when the SW allocation went to 30% and the dry year program water was no longer needed.

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 19, 2009.

12. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:16 p.m.

Approved:

__________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary