REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, June 19, 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, Samuel Frye, W. Douglas Morgan, and Larry Wilson

Directors Absent:

Richard Shaikewitz

Staff Present:

Bob Roebuck, General Manager

Toni Bailey, Business Manager

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

Kate Rees, Manager, COMB

David Strauss, District customer

2. PUBLIC FORUM

Mr. Strauss spoke to the Board on the subject of rates and expenses.

3. CONSENT CALENDAR

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

4. Time Certain Item; 2:10 p.m.

A. Presentation of 2007-08 COMB Budget

President Abel introduced Ms Kate Rees, COMB General Manager, who presented the COMB Budget for FY 2007/08. Following the presentation Ms Rees answered Directors’ questions and Director Abel invited input and direction from the Board pertaining to her vote as a member of the COMB Board representing MWD.

5. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETINGs OF April 23 and May 21, 2007

Director Abel reported on the subject meetings.

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETINGs OF April 23 and May 21, 2007

Director Abel reported on the subject meetings.

6. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

Mr. Wullbrandt reported on legal and legislative matters of interest to the Board. He also announced that he is being considered for District Counsel at Goleta Water District, where he has been serving as interim counsel for several months.

7. District Business Report

A. Proposed 2007/08 Budget

Ms Bailey presented the 2007/08 Budget and answered Directors’ questions. Following discussion, it was moved by Director Morgan, seconded by Director Frye, and unanimously carried to adopt the 2007/08 Budget as presented.

B. Proposed 2007/08 Budget Resolutions

It was moved by Director Morgan, seconded by Director Wilson, and unanimously carried to approve Resolutions 2026 through 2029 by one vote.

Resolution No. 2026, Employee Classification and Salary Schedule

Ayes: Abel, Frye, Morgan, and Wilson

Noes: None

Absent: Shaikewitz

Resolution No. 2027, Charges, Rates and Fees are not “Proceeds of Taxes under Article XIIIB

Ayes: Abel, Frye, Morgan, and Wilson

Noes: None

Absent: Shaikewitz

Resolution No. 2028, Investment Policy for Fiscal Year 2005/06

Ayes: Abel, Frye, Morgan, and Wilson

Noes: None

Absent: Shaikewitz

Resolution No. 2029, Setting Capital Cost Recovery Fees and Charges

Ayes: Abel, Frye, Morgan, and Wilson

Noes: None

Absent: Shaikewitz

C. Response to the Santa Barbara County Grand Jury’s Report regarding Certificates Of Participation (COP’s)

Ms Bailey presented this item and answered Directors’ questions. Following discussion, it was moved by Director Wilson, seconded by Director Morgan, and unanimously carried to authorize the General Manager to sign and send the response to the Grand Jury’s report as revised.

D. Resolution No. 2030, Bank Signatories

Ms Bailey presented this housekeeping item. It was moved by Director Frye, seconded by Director Wilson, and carried by the following roll-call vote to approve Resolution No. 2030 as presented.

Ayes: Abel, Frye, Morgan, and Wilson

Noes: None

Absent: Shaikewitz

E. Resolution No. 2031, AUTHORIZATION OF RENTAL AGREEMENT FOR SAFE DEPOSIT BOX AT SANTA BARBARA BANK & TRUST

Ms Bailey presented this housekeeping item. It was moved by Director Frye, seconded by Director Morgan, and carried by the following roll-call vote to approve Resolution No. 2031 as presented.

Ayes: Abel, Frye, Morgan, and Wilson

Noes: None

Absent: Shaikewitz

F. Customer Reclassifications

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

G. Water Sales Report for May 2007

Ms Bailey presented this item and answered Directors’ questions.

H. April 2007 Revenue and Expense Report

Ms Bailey presented this item and answered Directors’ questions.

I. Third Quarterly Budget Report

Ms Bailey presented this item and answered Directors’ questions.

8. district Operations Report

A. Ortega Reservoir Project Status Report (oral)

Mr. Roebuck brought the Board up to date on the progress of the Ortega Project.

B. Toro Canyon Reservoir Water Main Extension / Replacement / Abandonment – Unscheduled Distribution System Water Line Project

Mr. Roebuck presented this item and answered Directors’ questions. Following discussion, it was moved by Director Frye, seconded by Director Wilson, and unanimously carried to approve the subject project, appropriate funding in the amount of $125,000 for the work from the 1998A Bond funds, and authorize the General Manager to notify the Torito Road Homeowners Association and affected homeowners of the project.

C. Resolution No. 2032, Adopting Santa Barbara Countywide Integrated Regional Water Management Plan

Mr. Roebuck and President Abel presented this item and answered Directors’ questions. Following discussion, it was moved by Director Abel, seconded by Director Frye, and carried by the following roll-call vote to approve Resolution No. 2032 adopting the Santa Barbara Countywide Integrated Regional Water Management Plan.

Ayes: Abel, Frye, Morgan, and Wilson

Noes: None

Absent: Shaikewitz

D. Central Coast Water Authority – Dudley Ridge Water District Water Exchange

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

9. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

Mr. Roebuck reported on ongoing projects not covered elsewhere in the agenda.

B. Spring 2007 Groundwater MONITORING PROGRAM Report

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

C. Revisions to DRAFT RESOLUTION No. 2033 Regarding Groundwater and Groundwater Supplies

Mr. Roebuck presented this item and answered Directors’ questions. The subject resolution will be presented for a vote of the Board at the July 17 Board meeting, when the required posting period has elapsed. Following discussion, it was moved by Director Frye, seconded by Director Morgan and carried with Director Wilson abstaining to accept the revised wording on page two section B and set consideration of the proposed resolution for a public hearing at the next regular Board meeting.

D. Water Works Operation Report

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

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10. DIRECTOR AND STAFF MEETING REPORTS

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

Director Wilson reported that the subject meeting was cancelled.

11. COMMITTEE REPORTS/RECOMMENDATIONS

A. OPERATIONS COMMITTEE

Director Frye 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 consumer confidence report (water quality report) should be arriving in mailboxes shortly.

12. AGENDA ITEM REQUESTS

There were no requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for July 17, 2007.

13. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:38 pm.

Approved:

__________________________

Jan E. Abel, President

Attest:

__________________________________

Robert L. Roebuck, Secretary