REGULAR MEETING MINUTES

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, July 18, 2006

2:00 P.M.

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

President Edmonston called the meeting to order at 2:00 p.m.

Directors Present:

President Robert M. Edmonston

Directors Jan E. Abel, W.W. Drewry, Robert W. Puddicombe, and Larry Wilson

Directors Absent:

None

Staff Present:

Bob Roebuck, General Manager

Toni Bailey, Business Manager

Tom Mosby, Engineering Manager (briefly)

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

Deirdre Hanssen

2. PUBLIC FORUM

There were no members of the public present who wished to speak on any matters not on the agenda.

3. CONSENT CALENDAR

Following Board discussion, it was moved by Director Drewry, seconded by Director Wilson, and unanimously carried to approve the consent calendar as revised.

4. Time Certain Item; 2:05 p.m.

A. PUBLIC HEARING: PROPOSED WATER DISTRIBUTION SYSTEM AND FIRE FLOW UPGRADE PROGRAM, PROPOSED Funding, AND ANY OBJECTIONS OR PROTESTS TO THE PROPOSED CHARGE AND REPORT

Status Report on Water Availability Charge Program and 1998-A Bond Capital Projects

Mr. Roebuck briefly reviewed the Water Availability Charge Program. President Edmonston opened the hearing for protests. No written protests were received by the District. Deirdre Hanssen addressed the Board on the current charges for water.

There being no other public input, President Edmonston closed the protest period and the public hearing.

1. Resolution No. 2019 Establishing Water Availability Charge for 2006/07 to Finance Water Distribution System and Fire Flow Upgrade Program and Consideration of Report Establishing Water Availability Charge for 2006/07

Following discussion, it was moved by Director Wilson, seconded by Director Puddicombe, and carried by the following roll-call vote to adopt Resolution No. 2019:

Ayes: Abel, Drewry, Edmonston, Puddicombe, and Wilson

Noes: None

Absent: None

It was moved by Director Puddicombe, seconded by Director Wilson and unanimously carried to approve the revised scope of work reflecting the new priorities established for the Water Availability Charge project list.

5. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF June 26, 2006

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

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF June 26, 2006

Director Abel reported on the subject meeting.

C. Special COMB/CCRB Meeting OF JUly 17, 2006

Director Abel and Mr. Wullbrandt reported on the subject meeting. Options for reorganization have been narrowed down to two, which are still under discussion.

6. LEGAL MATTERS

A. Recent and Pending Legal Matters REview

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

B. Conflict of Interest Code

Mr. Roebuck presented this informational item.

7. Business

A. Directors’ Benefits, Compensation, and Expense Reimbursement Policy

Mr. Roebuck and Mr. Wullbrandt presented this item and answered Directors’ questions. Following discussion it was moved by Director Drewry, seconded by Director Wilson, and unanimously carried to adopt the revised policy as presented.

B. Opening on Board for Candidate in November Election

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

C. ACWA Advance Deposit on Dues Program

Ms Bailey presented this item and answered Directors’ questions. Following discussion it was moved by Director Drewry, seconded by Director Wilson, and unanimously carried to carry forward District’s deposit on ACWA dues of $6,503 into program six of ACWA’s Advance Deposit on Dues Program and authorize the General Manager to sign the ACWA Advance Dues Deposit Agreement upon receipt.

Legal Counsel departed at this point

8. district Operations Report

A. Ortega Reservoir Project Status Report

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

B. Integrated Regional Water MANAGEMENT Plan (IRWMP) – Santa Barbara County Public Works Funding Request

Director Abel requested that this item be dealt with during the discussion of Cachuma matters in Agenda Item 3. Due to COMB efforts, the County has consented to cover 50% of costs for the IRWM. It is still unknown how many Districts will be participating. COMB participation has not yet been voted on by the COMB board, but it is likely that MWD will also be asked to cover its proportion of costs for COMB and CCWA. Director Abel asked for Board input. It was the consensus of the Board that Director Abel vote for COMB/CCRB participation.

Mr. Wullbrandt suggested that the Board place California Proposition 84 on a future agenda for discussion.

Following discussion it was moved by Director Abel, seconded by Director Wilson, and unanimously carried to approve MWD’s participation as a cooperative partner in the development of the proposed IRWMP, authorize the transfer of up to $5,000 from the Water Purchase/Cachuma budget line item to the Cooperative Water Programs line item in the Administrative and General section of the district’s FY 2006/07 Budget to fund District’s share of developing the IRWMP, including any costs for District participation in COMB, and authorize the General Manager to execute a memorandum of understanding regarding this subject.

C. MWD / City of Santa Barbara Intertie at Barker Pass

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

9. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

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

B. Cloud Seeding Program STatus REport, Water Year 2005/06

Mr. Roebuck presented this informational item.

C. Bill printing issues

Mr. Roebuck and Ms Bailey presented this item.

D. History of District Rates and Charges

Mr. Roebuck and the Finance Committee presented this informational item.

10. DIRECTOR AND STAFF MEETING REPORTS

A. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF June 26, 2006

Director Wilson reported on the subject meeting where the speaker was County Clerk Joseph Holland.

B. LAFCO meeting of July 6, 2006

Director Wilson did not attend the subject meeting.

C. ACWA Spring Conference of May 8-12, 2006

Director Abel and General Manager Roebuck reported on their attendance at the ACWA Spring Conference.

11. COMMITTEE REPORTS/RECOMMENDATIONS

A. OPERATIONS COMMITTEE

Directors Puddicombe and Edmonston reported that the opportunity for water banking with SemiTropic is still being investigated by the Committee, the General Manager, and Counsel.

B. FINANCE COMMITTEE

Directors Wilson and Drewry stated that the activities of the Finance Committee were covered elsewhere in the agenda.

C. PUBLIC INFORMATION COMMITTEE

Director Abel and Director Drewry reported that the Public Information Committee was working on the outreach program for the budget. The Committee has decided that one general information newsletter will be sufficient, with the second newsletter being the Prop 218 notice. The first newsletter is in all but final form. A meeting is scheduled to discuss the Prop 218 notice and a brief presentation to the Montecito Association is being prepared. The schedule for these activities was distributed to the Directors.

12. Board information Items

No action was taken on these informational items presented to the Board.

13. AGENDA ITEM REQUESTS

There were no requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for August 15, 2006.

14. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 4:25 pm.

Approved:

__________________________

Robert M. Edmonston, President

Attest:

__________________________________

Robert L. Roebuck, Secretary