REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, California

TUESDAY, May 15, 2007

2:00 P.M.

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

President Abel called the meeting to order at 2:00 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

Tom Mosby, Engineering Manager

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

Kate Rees, Manager, CCRB

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 Frye, seconded by Director Morgan, and unanimously carried to approve the Consent Calendar as revised.

4. Time Certain Item; 2:00 p.m.

A. Ratification of 2007-08 CCRB/ID#1 Budget

Ms Rees presented the CCRB/ID#1 Budget for 2007/08 and answered Directors’ questions. Following discussion, it was moved by Director Frye, seconded by Director Morgan, and carried on a vote of four to one to ratify the District’s share of the CCRB/ID#1 FY 2007/08 Budget as presented.

5. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

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

6. District Business Report

A. Nine Month Investment Report

Ms Bailey presented this item.

B. Water Sales Report for April 2007

Ms Bailey presented this item.

C. March 2007 Revenue and Expense Report

Ms Bailey presented this item.

D. Position Reclassification and Salary Adjustments

Mr. Roebuck presented this item and he and Ms Bailey answered Directors’ questions. Following discussion, it was moved by Director Wilson, seconded by Director Morgan, and unanimously carried to direct staff to include the recommended position reclassifications and salary adjustments in the 2007/08 Budget.

E. Annual Cost of Living Adjustment

Mr. Roebuck presented this item and he and Ms Bailey answered Directors’ questions. Following discussion, it was moved by Director Frye, seconded by Director Wilson, and carried with one abstention to approve a 3.6% cost of living adjustment (COLA) for the FY 2007/08 Budget. The Finance Committee has requested that a written policy on the procedure for formulation of a COLA be established for use in future years.

F. Proposed Annual Dues

Ms Bailey presented this item. Following discussion, it was moved by Director Shaikewitz, seconded by Director Morgan, and unanimously carried to authorize the dues on the list provided for inclusion in the 2007/08 Budget.

G. Proposed Capital cost Recovery and Connection Fees

Ms Bailey presented this item. Following discussion, it was moved by Director Shaikewitz, seconded by Director Morgan, and unanimously carried to approve the schedule of MWD’s Capital Cost Recovery and Connection fees to be included in the 2007/08 Budget.

H. Draft 2007/08 Budget

This item was presented for information only. There will be a Board Workshop concerning the Budget on May 31 at 1:00. The Budget will be considered for approval at the June meeting of the Board.

7. district Operations Report

A. Ortega Reservoir Project Status Report (oral)

Mr. Roebuck reported on the status of the Ortega Reservoir Project.

B. ALSTON ROAD WATER MAIN REPLACEMENT PROJECT –STATUS REPORT

Mr. Mosby brought the Board up to date on the status of the Alston Road Water Main Replacement Project.

C. OLIVE ROAD WATER MAIN REPLACEMENT PROJECT – AWARD OF BID

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 award a contract to Lash Construction in the amount of $348,880 for the Olive Road and Tollis Avenue water main replacement project and appropriate funding for this project in the amount of $366,325 from the 1998-A Bond funds.

D. FY 2007/08 PROPOSED CAPITAL IMPROVEMENT PROGRAM

Mr. Mosby introduced this item and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Wilson, and unanimously carried to approve the 2007/08 Capital Improvement Program as presented in the amount of $2.3 million.

E. 2006/07 WATER SUPPLY REPORT – PURCHASE OF STATE WATER

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

F. MIRAMAR BEACH HOMEOWNERS ASSOCIATION REQUEST FOR USE OF DISTRICT PIPELINE EASEMENT

Mr. Mosby presented this item and he and Mr. Roebuck answered Directors’ questions. Following discussion it was moved by Director Morgan, seconded by Director Frye, and carried with one abstention to ratify staff’s position on the proposed use of District’s pipeline easement on UPRR property by the MBHOA.

G. PROPOSED MIRAMAR HOTEL RENOVATION PROJECT

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

H. Bella VIsta and Doulton Treatment Plants - Clarifier Media Replacement

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

I. Closed Session Pursuant to Government Code Section 54956.9 (c) There is a possibility of initiating litigation in one case.

The Board adjourned to closed session at 4:17 p.m. to discuss this item.

The Board reconvened to open session at 4:31 p.m. General Manager Roebuck reported that It was moved by Director Frye, seconded by Director Shaikewitz, and unanimously carried to authorize the General Manager to move forward with settlement of potential claims related to right of way encroachment by the owner of 2825 Hidden Valley Road.

8. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

Mr. Roebuck presented his update for ongoing projects not covered elsewhere in the agenda. He noted that Directors had received invitations to the Employee Appreciation Luncheon, and reported briefly on the recent ACWA Spring Conference.

B. Water Demand and Supply Workshops

Mr. Roebuck reminded the Board of the upcoming workshops on Water Demand and Supply and briefly outlined their scope and content.

C. Water Works Operations Report for April 2007

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

---------------------------------------------- Legal Counsel Departs----------------------------------------------

9. DIRECTOR AND STAFF MEETING REPORTS

A. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF April 23, 2007

Director Wilson reported on the subject meeting.

B. Central Coast Water Authority Meeting of April 26, 2007

Director Shaikewitz reported on the subject meeting.

10. 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

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

C. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee will be meeting to discuss the Water Quality Newsletter.

11. AGENDA ITEM REQUESTS

Director Frye requested that the matter of the agricultural use record update which is sent out annually be brought before committee and possibly added to the agenda for a future Board meeting. The President directed the Finance Committee to consider the matter at a future meeting. There were no requests for items to be added to the agenda for the next regular Board meeting scheduled for June 19, 2007.

12. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:15 pm.

Approved:

__________________________

Jan E. Abel, President

Attest:

__________________________________

Robert L. Roebuck, Secretary