REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, August 18, 2009

2:00 P.M.

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

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

Directors Present:

Directors Jan E. Abel, W. Douglas Morgan, Richard Shaikewitz, and Larry Wilson

Directors Absent:

Director Samuel Frye

Staff Present:

Tom Mosby, General Manager

Chip Wullbrandt, District Counsel

Toni Bailey, Business Manager

Lois Werner, Recording Secretary

Guests Present

Richard Johnson, District Customer

2. PUBLIC FORUM

Mr. Johnson asked about the investment policy and financial situation of the District. The Board reviewed section 7-C, the quarterly investment report, ahead of the other items on the agenda in response to Mr. Johnson’s concerns.

3. CONSENT CALENDAR

It was moved by Director Abel and seconded by Director Morgan and carried with one abstention to approve the minutes of July 20, 2009. Following discussion, it was moved by Director Morgan, seconded by Director Abel, and unanimously carried to approve the remainder of the Consent Calendar as presented.

4. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

Mr. Wullbrandt had no legal or legislative matters of interest to report to the Board.

B. nmfs dRAFT sOUTHERN cALIFORNIA sTEELHEAD dISTINCT pOPULATION sEGMENT rECOVERY pLAN

Mr. Wullbrandt reported to the Board on the newly-released National Marine Fisheries Service draft recovery plan for the California steelhead. Board concurred with Mr. Wullbrandt on the importance of composing a comment letter referencing the extreme physical and financial impacts to the District if the draft language is interpreted literally. Comments are due September 20. NMFS will be having a public hearing on this draft plan in Santa Barbara on September 1. Mr. Wullbrandt urged all Directors to attend.

C. Ortega Reservoir Litigation Update

Mr. Wullbrandt and Mr. Mosby reported to the Board on the progress of the Ortega Reservoir litigation.

5. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF jULY 27, 2009

Director Abel reported on the subject meeting, where she was reelected as President and Director Hansen as Vice-President, and called the Directors’ attention to the materials presented in their agenda packets.

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF JuLY 27, 2009

Director Abel reported on the subject meeting, where Director Williams was reelected as President and Director Lieberknecht as Vice-President.

C. COMB Bonds, discussion

The Directors discussed the upcoming COMB bond vote. It was the consensus of the Board that a special workshop session with AECOM and other principals involved in planning COMB capital projects would be beneficial. The General Manager was directed to schedule a workshop with AECOM and other principals at the earliest convenient date and time.

6. Board of Directors

A. ACWA Committee Appointment Nominees for 2010-2011 Term

President Shaikewitz introduced this item. Director Abel requested that Mr. Wullbrandt be nominated to the ACWA Federal Affairs Committee and the ACWA State Legislative Committee.

It was moved by Director Morgan, seconded by Director Abel, and unanimously carried to nominate Chip Wullbrandt to serve on the ACWA Federal Affairs and State Legislative Committees.

President Shaikewitz asked if any Directors wished to be nominated to serve on any of the other ACWA committees. Mr. Wullbrandt noted that it would possibly be beneficial for a Board member to attend and participate in the ACWA Region 5 meetings. President Shaikewitz asked Mr. Mosby to notify the Board of upcoming Region 5 meetings.

7. District Business Report

A. Water Sales Report for JuLY 2009

Ms Bailey presented this report and answered Directors’ questions.

B. jUNE 2009 Revenue and Expense Report

Ms Bailey presented this report and answered Directors’ questions.

C. Quarterly Investment Report

Ms Bailey presented this report and answered Directors’ questions. The Board directed staff to bring a daily cash balance printout to the Finance Committee for their review at their next meeting.

D. Incode Software Capabilities

Ms Bailey presented this item and answered Directors’ questions.

E. Incode Software Expenditures

Ms Bailey presented this item and answered Directors’ questions. Following discussion it was moved by Director Abel, seconded by Director Shaikewitz, that the recommendation for this item be referred back to the Finance Committee and, if they are satisfied, the bills be paid as recommended.

F. Resolution No. 2059, Authorizing Signatories for Checking Accounts at Santa Barbara Bank & Trust

It was moved by Director Abel, seconded by Director Morgan, and carried by the following roll-call vote to approve Resolution No. 2059:

AYES: Directors Abel, Morgan, Shaikewitz, and Wilson

NOES: None

ABSTAIN: None

ABSENT: Director Frye

G. Resolution No. 2060, Adopting Revised Agricultural Certification Criteria

Mr. Mosby presented this item and answered Directors’ questions. Following discussion, it was moved by Director Morgan, seconded by Director Abel, and carried by the following roll-call vote to approve Resolution No. 2060 as amended:

AYES: Directors Abel, Morgan, Shaikewitz

NOES: None

ABSTAIN: Director Wilson

ABSENT: Director Frye

8. District Operations Report

A. Proposed MWD / CVWD Service ARea REorganization Update

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

B. RBF Proposal – On-Call Professional Services Contract

Mr. Mosby presented this item and answered Directors’ questions. Following discussion it was moved by Director Abel, seconded by Director Shaikewitz, and carried on a vote of three with one abstention to ratify the General Manager’s approval of an on-call professional services contract with RBF Consulting in an amount not to exceed $20,000.

C. 3035 Hidden Valley Lane – Proposed Grant of Easement Over MWD’s Buell Property to Wernets

Mr. Mosby presented this item and answered Directors’ questions. Following discussion it was moved by Director Abel, seconded by Director Morgan, and carried on a vote of three to one to approve the proposed grant of easement as revised, with the understanding that staff and legal cost in the preparation and recording of the easement will be paid by Mr. and Mrs. Wernet.

D. Montecito Sanitary District – Status of Annual Billing Service Charges to Montecito Water District

Mr. Mosby presented this item and answered Directors’ questions regarding the reclassification of MWD well-site effluent from high-strength sewage to low-strength sewage by Montecito Sanitary District. This resulted in much lower sewer bills, even with the increase in MSD rates. Also, MSD billing of MWD will now be direct and not via the tax rolls.

E. Groundwater Monitoring Program

Mr. Mosby presented this item and answered Directors’ questions. Director Shaikewitz requested that staff explore the effect on the water table of the very deep wells being drilled in the District.

F. South Coast Conduit Metering Issues – Carpinteria Reach

Mr. Mosby presented this item and answered Directors’ questions. Much of the data which had been furnished by COMB had to be discarded because meter reads were taken by SCADA, which is not a reliable method of reading meters. The test period has been extended for six months to enable COMB to provide accurate data for analysis.

G. Water Works Operations REport

Mr. Mosby presented this report.

9. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

Mr. Mosby reported on District projects and operations not covered elsewhere in the agenda, as well as his participation in the last CCWA meeting.

10. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF jULY 27, 2009

Director Wilson reported on the subject meeting.

B. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee had not met.

C. OPERATIONS COMMITTEE

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

D. FINANCE COMMITTEE

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

E. LONG-TERM WATER SUPPLY AD HOC COMMITTEE

Directors Morgan and Shaikewitz reported that the activities of the Ad Hoc Long-Term Water Supply Committee had been covered elsewhere in the agenda with the exception of the ID #1 exchange agreement, which he asked Mr. Mosby to cover briefly for the Board. Mr. Mosby noted that they were working on a possible solution to the disagreement over whether ID#1 is entitled to a spill credit for the 07/08 water year. MWD has met with CCWA and will be issuing a letter within the next ten days.

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 September 15, 2009.

12. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:27 p.m.

Approved:

_____________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary