REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

In the Board Room of the

Montecito Fire DIstrict

595 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA

Tuesday, August 19, 2008

2:00 P.M.

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

President Shaikewitz called the meeting to order at 2:02 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

Karl Meier, Engineering Manager

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

41 members of the public were present for the public hearing.

2. PUBLIC FORUM

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

3. Public Hearing: Rates, Service Charges and Fees

A) Public Hearing to Receive Public Comment and Protest on the Proposed Conservation Rates, and Changes to Service Charges and Meter Fees

1) PROPOSED ORDINANCE 90 ESTABLISHING DEFINITIONS AND CLASSIFICATIONS AND AMENDING DISTRICT ORDINANCE 82

2) PROPOSED RESOLUTION No. 2047, ADOPTING WATER RATES AND SERVICE CHARGES

President Shaikewitz briefly reviewed the water situation in the District and requested that Mr. Mosby present the staff report. Following Mr. Mosby’s report, Counsel Wullbrandt explained the purposes of the hearing and the requirements of prop 218.

Following the staff report, President Shaikewitz opened the hearing for public comments and protests at 3:20 p.m.

Protests were submitted by the following District customers:

Henry J. Muller, Jr.

Julie C. & William T. Esrey

Robert C. & Mary Lynn Nakasone

Selby Sullivan

John J. Mitchell III

Sue D. Schwartz

Martha Smilgis

Donald Koszyk

Robert E.M. & Alexandra M.T. Nourse

Nathan Nahmias

Hans Van Koppen

Brian Tappeiner

Jesse V. & Maureen G. McNulty

Paul Scott

J’Amy Brown

Candice & Ted Buergey

Margaret Schneider

Stephanie Glatt (Casa de Maria)

Susan Keller

Sharon Trigueiro

Vedanta Society of So Calif

Elden D. Dellanina

Elizabeth Bent, Vedanta Temple

Randy Thwing, SB Cemetery

Berit Sten

Don Yldisaker

Bill Howard

Stephanie Graff, La Casa de Maria

Candice Buergey

Ted Buergey

David Strauss

Brett Beauvoix

J’Amy Brown

John Denver

Ron Pulice

Susan Keller

Sharon Trigueiro

Hans Van Koppen

Randal Badat

Darlene Bierig

Sally Jordan

Elden Dellanina

When the Board had heard all who wished to comment, and had received all protests, President Shaikewitz closed the public hearing at 4:20 p.m.

Counsel described a proposed change to the definition of agricultural to include floriculture in the agricultural classification. He also suggested language to emphasize that equestrian and polo uses, whether commercial or private, are included in the SFR classification. He also noted that the Resolution is clear that the agricultural allocation is for acreage under cultivation, not total acreage.

In total, there were 21 protests received: 17 from single-family residential customers and 4 from agricultural customers.

The Board discussed the proposed Ordinance and Resolution and gave direction to staff for certain revisions. Director Frye proposed some additional changes to the agricultural definition.

The Board discussed with Counsel the definition of agriculture to be included in the proposed Ordinance.

B) Continuation of Board Discussion to Special Meeting of Board of Directors to be Held at El Montecito PResbyterian Church, 6:30 p.m. August 20, 2008

Discussion and further public comment on the Ordinance and Resolution was continued to Wednesday, August 20 at 6:30 p.m. at El Montecito Presbyterian Church. The Board will consider taking action on the proposed Ordinance and Resolution at that time.

The Board moved to Agenda Item 9-C to allow members of the public who were present to speak to the Board on that item.

Mr. Mosby presented this item and he and Mr. Wullbrandt answered Directors’ questions. There were members of the public present who wished to comment and ask questions on this item. Mr. Mosby and the Board responded to comments and questions from Susan Keller, Ted Buergey, Bill Howard, J’Amy Brown, and other members of the public who did not identify themselves.

Following the hearing of item 9-C the Board adjourned the meeting to a later date.

12. ADJOURNMENT