REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, May 18, 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

Charles Hamilton, Carpinteria Valley Water District

Marty Moore, Birnam Wood Golf Club

Peter Stalker, Birnam Wood Golf Club

2. PUBLIC FORUM

Mr. Strauss commented on the upcoming MWD draft 2010/11 budget, noting that the revenue drop should call for cuts in expenditures.

3. CONSENT CALENDAR

Following discussion it was moved by Director Frye, seconded by Director Shaikewitz , and unanimously carried to approve the Minutes of April 20. It was moved by Director Frye, seconded by Director Shaikewitz , and carried with one abstention to approve the Minutes of May 12. It was moved by Director Shaikewitz, seconded by Director Frye and unanimously carried to approve the Payment of Bills for April 2010. It was moved by Director Frye seconded by Director Shaikewitz and unanimously carried to approve the Investment of District Funds.

4. Time Certain 2:10 p.m.

A. Presentation of CCRB FY 2010/11 Budget

The CCRB General Manager was not present, Director Morgan, as District representative to CCRB, and Mr. Mosby presented the CCRB 2010/11 Budget and answered Directors’ questions. Following discussion it was moved by Director Morgan, seconded by Director Shaikewitz, and carried on a vote of four to one to ratify the CCRB Board’s approval of the budget and approve the District’s 10.31% share for the first six months (estimated at $87,433) for inclusion in the MWD 2010/11 Budget. MWD is withdrawing from CCRB at the end of 2010, and will not be a participant beyond the second quarter of the 2010/11 budget.

5. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

There were no items to report.

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 – Anticipated Litigation: Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(b): One Case

The Board adjourned to closed session on the above matters at 2:51 p.m.

The Board reconvened in open session at 4:07 p.m. President Morgan reported that, after discussion, the Board continued item 5-B to May 19, when Counsel for the litigation could be present.

He reported that, on item 5-C the Board had received information and given direction to Counsel and staff.

6. Cachuma Matters

A. Cachuma Conservation and RElease Board meeting of April 26, 2010

This item was continued to May 19, 2010.

B. CACHUMA OPERATION AND MAINTENANCE BOARD meeting of April 26, 2010

This item was continued to May 19, 2010.

7. district Operations Report

A. SB County Montecito Growth Management Ordinance Update

Mr. Mosby presented this item, answered Directors’ questions, and received input.

B. NOTIFICATION OF PROPOSED NEW WATER WELL DEVELOPMENT AT EAST VALLEY RANCH (BIRNAM WOOD)

Mr. Mosby introduced this item. Mr. Stalker and Mr. Moore discussed the purposes of Birnam Wood’s proposed project to drill a well or wells at Birnam Wood, which is to eliminate BW’s reliance on District potable water supplies for irrigating the golf course. Mr. Wullbrandt discussed a draft agreement prepared by PP&P with regard to this project and the extent of the original agreement of Birnam Wood to surrender its groundwater rights. Following discussion, the matter was referred back to the Operations Committee for further study and discussion.

C. Bella Vista Annexation Status Update

Director Frye presented this item, as he attended the LAFCO hearing on behalf of the District.

D. City of Santa Barbara “Plan Santa Barbara” Draft EIR

Mr. Mosby and the Operations Committee presented this item and answered Directors’ questions.

E. Unaccounted Water Update – Production Meter Testing Results

Mr. Mosby presented this item and answered Directors’ questions. Following discussion, it was the consensus of the Board to authorize the General Manager to contact COMB and notify them that the District will replace the Barker Pass and Office COMB South Coast Conduit lateral production meters, which have been found to be over-registering, and subtract the cost of the replacement from District payments to COMB.

F. Contribution Agreement, COMB Second PIpeline Project

Mr. Mosby and Mr. Wullbrandt presented this item, answered Directors’ questions and received comment on the proposed changes to the contribution agreement. Moved by Director Abel seconded by Director Frye and unanimously carried to direct staff and counsel to refuse the proposed changes to the contribution agreement and resolve questions on the scheduling to forestall MWD approving the agreement prior to sale of the COMB bonds.

8. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

This item was continued to May 19, 2010.

B. Water Works Operation Report

This item was continued to May 19, 2010.

9. DISTRICT BUSINESS REPORT

A. 2010/11 Central Coast Water Authority (CCWA) Budget

Ms Bailey presented this item and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Frye, and unanimously carried to approve $5,392,566 for MWD’s estimated share of the CCWA annual budget for inclusion in the MWD budget.

B. Proposed MWD Annual dues for 2010/11

Ms Bailey presented this item and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Frye, and unanimously carried to approve the list of annual dues for inclusion in the 2010/11 budget.

10. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meeting Of April 23, 2010

This item was continued to May 19, 2010.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF April 26, 2010

This item was continued to May 19, 2010.

C. ACWA SPRING CONFERENCE, MONTEREY

Director Morgan reported on the ACWA Spring Conference, which he attended May 4-7, 2010. He particularly reported on Mr. Wullbrandt’s participation in the forum on anadromous species.

D. ACWA REGION 5 VANDENBURG TOUR

This item was continued to May 19, 2010.

E. PUBLIC INFORMATION COMMITTEE

This item was continued to May 19, 2010.

F. OPERATIONS COMMITTEE

This item was continued to May 19, 2010.

G. FINANCE COMMITTEE

This item was continued to May 19, 2010.

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 June15, 2010.

12. ADJOURNMENT

The meeting was continued to 9:00 a.m. on May 19 and adjourned at 4:58 p.m.

Approved:

_____________________________

W. Douglas Morgan, President

Attest:

__________________________________

Tom Mosby, Secretary