REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, California

TUESDAY, August 21, 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, Richard Shaikewitz, and Larry Wilson

Directors Absent:

None

Staff Present:

Bob Roebuck, General Manager

Tom Mosby, Engineering Manager

Toni Bailey, Business Manager

Mark Manion, for District Counsel

Lois Werner, Recording Secretary

Guests Present

2. PUBLIC FORUM

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

3. CONSENT CALENDAR

Following discussion, it was moved by Director Morgan, seconded by Director Frye, and unanimously carried to approve the Consent Calendar as revised. It was noted that Mr. Roebuck’s actual date of retirement will be December 29, 2007.

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

A. Closed session pursuant to Government Code Section 54957(b)(1) – General Manager’s Annual Performance Evaluation and Compensation Review

The Board adjourned to closed session at 2:36 p.m. to discuss the above matter.

The Board reconvened in open session at 3:44 p.m. President Abel announced that no reportable action had been taken by the Board.

5. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF July 23, 2007

Director Abel reported on the subject meeting and called Directors’ attention to the information provided in their agenda packets. Director Abel has been re-elected president of CCRB, and Chuck Evans vice-president.

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF July 23, 2007

Director Abel reported on the subject meeting. Kate Rees has now been named General Manager of COMB (no longer interim). Chuck Evans was elected president of COMB, and Matt Loudon is the vice president.

6. Board of Directors

A. Resolution No. 2035 — Directors’ Benefits, Compensation and Expense Reimbursement Policy

Mr. Roebuck and Ms Bailey introduced this item and answered Directors’ questions. Following Board discussion it was moved by Director Frye, seconded by Director Abel, and carried by the following roll-call vote to approve Resolution No. 2035 as presented to approve the Directors’ Benefits, Compensation and Expense Reimbursement Policy as amended;

AYES: Abel, Frye, Shaikewitz, and Wilson

NOES: Morgan

ABSTAIN: None

B. Revisions to the Ordinance Setting the Rate of Daily Compensation for Directors

Ms Bailey introduced this item and answered Directors’ questions. Following discussion, it was moved by Director Frye, seconded by Director Morgan and carried by a vote of three to two that the proposed daily compensation rate be set at $100. It was moved by Director Frye, seconded by Director Morgan and carried unanimously that staff proceed with the public notification process to adopt an ordinance substantially like the proposed draft revision to Ordinance No. 85 at the next meeting of the Board.

7. District Business Report

A. Water Sales Report for July 2007

Ms Bailey presented this report.

B. June 2007 Revenue and Expense Report

Ms Bailey presented this item and answered Directors’ questions.

C. Transfer into the Revenue STabilization and Water Purchase Reserve

Ms Bailey introduced this item and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Morgan, and carried unanimously to authorize the transfer of $350,000 into the Revenue Stabilization and Water Purchase Reserve.

D. Ordinance No. 87 – Temporary Suspension of New Agricultural Use Classification Permits

Mr. Roebuck introduced this item and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Morgan, and carried by the following roll-call vote to adopt and approve Ordinance No. 87 as presented.

AYES: Abel, Morgan, Shaikewitz, Wilson

NOES: Frye

ABSTAIN: None

E. Fourth Quarterly Investment Report as of June 30, 2007

Ms Bailey presented this item and answered Directors’ questions.

F. Capital Expenditure Report

Ms Bailey presented this report.

8. district Operations Report

A. Ortega Reservoir Project Status Report

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

B. Ortega Reservoir Project Landscaping Work

Mr. Roebuck introduced this item and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Morgan, and unanimously carried to approve the Award of Contract for the Ortega Reservoir landscape work to Plowboy Landscapes, Inc., in the amount of $134,000; approve a ten percent project contingency in the amount of $13,400; and appropriate funding in the amount of $73,700 for payment of MWD’s 50% share of the landscaping work from the Department of Health Services State Drinking Water Revolving Fund Loan.

C. Distribution system Water Quality Model

Mr. Mosby introduced this item and answered Directors’ questions. Following discussion, it was moved by Director Frye, seconded by Director Shaikewitz, and unanimously carried to approve and accept the Water Quality Model and Report prepared by RBF Consulting, completing the final phase of work associated with their proposal dated March 25, 2005.

D. Water Supply Status Report

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

E. Landscape Guidelines for County Permitting Process

Mr. Roebuck introduced this item and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Frye, and unanimously carried to approve the proposal from Lynn Rodriguez for consulting services in the amount of $10,200 plus $1,000 estimated direct cost for County Permitting Process Landscape Guidelines and authorize the General Manager to execute an agreement or purchase order for this work.

F. Zaca Fire Status Report (Oral)

Mr. Mosby brought the Board up to date on the status of the Zaca Fire, which is not threatening District property at this point.

G. Cloud Seeding Program – Water year 2007/08

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

9. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

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

B. Water Works Operations Report

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

10. DIRECTOR AND STAFF MEETING REPORTS

A. Central Coast Water Agency Meeting of June 28, 2007

Director Shaikewitz reported on the subject meeting.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF July, 2007

Director Wilson reported on the subject meeting.

11. COMMITTEE REPORTS/RECOMMENDATIONS

A. OPERATIONS COMMITTEE

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

B. FINANCE COMMITTEE

Directors Wilson and Morgan indicated that the activities of the Finance Committee had been covered elsewhere in the meeting. Ms Bailey asked for the Board’s priority for a detailed report requested by the Finance Committee on the history of fixed and variable costs in the District.

C. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee had not met since the last Board meeting, but was scheduled to meet in early September to work on the next newsletter.

12. AGENDA ITEM REQUESTS

Director Shaikewitz asked that the next agenda include the issue of water shortage, with regard to the probable enforcement of affordable housing in the County. Director Abel requested that the PI Committee put this on their next agenda. There were no other requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for September 18, 2007.

13. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 6:02 pm.

Approved:

__________________________

Jan E. Abel, President

Attest:

__________________________________

Robert L. Roebuck, Secretary