Adjourned MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

Tuesday, May 18 to Wednesday, May 19, 2010

9:00 a.M.

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

President Morgan called the meeting to order at 9:00 a.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

Terry Schwartz, District Lead Counsel for Ortega Litigation

Lois Werner, Recording Secretary

Guest Present

Charles Hamilton, Carpinteria Valley Water District

Bob McDonald, Carpinteria Valley Water District

2. PUBLIC FORUM

No members of the public were present.

3. CONSENT CALENDAR

This item was completed on May 18, 2010.

4. Time Certain 2:10 p.m.

A. Presentation of CCRB FY 2010/11 Budget

This item was completed on May 18, 2010.

5. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

This item was completed on May 18, 2010.

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

The Board adjourned to closed session on the above matter at 9:02 a.m.

The Board reconvened in open session at 10:37 a.m. President Morgan reported that the Board received a report from Counsel.

Director Wilson departed at this point.

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

This item was completed on May 18, 2010.

6. Cachuma Matters

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

Director Morgan reported on the subject meeting. Director Abel requested that the monthly activities section of the CCRB/COMB Board packets be provided in MWD Board packets in the future, as well as any other selected materials of particular interest or relevance to the MWD Board.

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

Director Morgan reported on the subject meeting.

7. district Operations Report

A. SB County Montecito Growth Management Ordinance Update

This item was completed on May 18, 2010.

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

This item was discussed on May 18, 2010.

Mr. Mosby further discussed this item with the Board, proposing that any new well at Birnam Wood should be drilled with the same arrangement as the last wells; installed at their cost, but with the water belonging to MWD and subject to per-unit pricing.

C. Bella Vista Annexation Status Update

This item was completed on May 18, 2010.

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

This item was completed on May 18, 2010.

E. Unaccounted Water Update – Production Meter Testing Results

This item was completed on May 18, 2010.

F. Contribution Agreement, COMB Second PIpeline Project

This item was completed on May 18, 2010.

8. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

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

B. Water Works Operation Report

Mr. Mosby distributed this report for discussion and answered Directors’ questions.

9. DISTRICT BUSINESS REPORT

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

This item was completed on May 18, 2010.

B. Proposed MWD Annual dues for 2010/11

This item was completed on May 18, 2010.

10. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

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

Director Shaikewitz reported on the subject meeting.

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

Director Wilson had already left the meeting; there was no report.

C. ACWA SPRING CONFERENCE, MONTEREY

Director Morgan reported on his attendance at the ACWA/JPIA and ACWA Conference at Monterey May 5-8

D. ACWA REGION 5 VANDENBURG TOUR

Director Shaikewitz reported on the ACWA Region 5 tour of the Vandenburg Air Force Base and facilities.

E. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the PI Committee is working on the Consumer Confidence Report (Water Quality Report) which should be in customer mailboxes by July 1. The Committee also discussed the WAC postcard, which will be the same as prior cards, and a bill-stuffer highlighting new services available over the internet

F. OPERATIONS COMMITTEE

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

G. FINANCE COMMITTEE

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

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

There being no further business to come before the Board, the meeting was adjourned at 11:35 a.m.

Approved:

_____________________________

W. Douglas Morgan, President

Attest:

__________________________________

Tom Mosby, Secretary