Regular MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA

Tuesday, September 16, 2008

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, 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

Daniel Rodriguez, Distribution Superintendent

Guests Present

Brett Gray, COMB Operations Supervisor

Kate Rees, COMB General Manager

David Strauss, District customer

David Novis, District customer

Dan Hernandez, County Parks and Recreation Director

2. PUBLIC FORUM

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

3. Time Certain Items

A. 2:10 P.m. — Resolution No. 2044, Resolution of Appreciation for Daniel Rodriguez

President Shaikewitz presented Mr. Rodriguez with the signed and framed resolution of appreciation for his 25 years of service with the District.

B. 2:15 p.m. —COMB Bond Presentation

Director Abel introduced Brett Gray, COMB Operations Supervisor, who presented the Board with information on the proposed COMB bond for capital improvements to SCC facilities and answered Directors’ questions.

4. CONSENT CALENDAR

At Director Morgan’s request the payment of $14,676 for Rauch Communication was held back until the bill can be analyzed by representatives from the Finance and Public Information Committees. Following discussion, it was moved by Director Frye, seconded by Director Morgan, and unanimously carried to approve the Consent Calendar as amended.

5. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF August 25, 2008

Director Abel reported on the subject meeting and called the Board’s attention to the materials presented in their agenda packets. The latest Fish Management Plan newsletter has been published.

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF August 25, 2008

Director Abel reported on the subject meeting. Mr. Wullbrandt briefly reported on the public comment meeting on the draft environmental document for the Cachuma RMP in Solvang.

1. Time Certain 3:30 p.m. — Revised Cost Sharing Proposal for Quagga Mussel Prevention Measures at Cachuma

Director Abel introduced Dan Hernandez, County Parks and Recreation Director, who presented the County’s program for quagga mussel prevention at Lake Cachuma and the revised cost-sharing proposal being presented to COMB member units.

6. District Business Report

A. Water Sales Report for August 2008

Ms Bailey presented this item and answered Directors’ questions.

B. July 2008 Revenue and Expense Report

Ms Bailey presented this item and answered Directors’ questions.

C. Position Adjustment – Conservation Coordinator

Mr. Mosby and Ms Bailey presented this item and answered Directors’ questions. Following discussion it was the consensus of the Board that this item be brought back to the Board next month after being revised to include the full job description for the new position.

7. District Operations Report

A. WATER SUPPLY UPDATE 07/08

Mr. Mosby presented this report and answered Directors’ questions. The Board requested that the memo be revised and presented at the next meeting.

B. Distribution System Water Quality Sampling Results – 2008 third QUARTER trihalomethane

Mr. Meier presented this report and answered Directors’ questions.

C. United States Geological water resources proposal for jameson lake diversion monitoring and reporting

Director Frye, representing the Operations Committee, presented this annual item and answered Directors’ questions. Following discussion it was moved by Director Frye, seconded by Director Abel, and carried with one abstention to approve the expenditure of $12,950 on this budgeted item and authorize the General Manager to execute the Joint Funding Agreement.

D. conservation Program Update (Oral)

Mr. Mosby reported on the progress being made in the conservation program, particularly the successes associated with water conservation checkups being performed by Mike Clark. Water checkups are regularly resulting in savings of 10 to 30% annually.

8. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

Mr. Meier and Mr. Mosby reported on the agricultural site visits and other current District projects and operations not covered elsewhere in the agenda.

B. Water Works Operations REport

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

9. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meeting Of August 28, 2008

Director Shaikewitz reported that CCWA did not meet in August.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF August 25, 2008

Director Wilson had nothing to report on the subject meeting.

C. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee would meet on September 17.

D. OPERATIONS COMMITTEE

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

E. FINANCE COMMITTEE

Director Morgan reported that the Committee will be meeting as the Audit Committee in October. The Finance Committee discussed with the Board proposed billing procedures and policy with regard to customer water loss due to broken or leaking water lines or fixtures. No action was taken on this item.

F. Water Supply Ad Hoc Committee – Final report for 2008

The Ad Hoc Supplemental Water Acquisition Committee presented their final report on the acquisition of supplemental water supplies for the 2008 water year. The President appointed a new ad hoc committee for long-term supplemental water acquisition. The new committee will be Directors Morgan and Shaikewitz.

10. Closed Session

A. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: (1 case)— threat in letter from the Law Offices of Babak Naficy dated September 10, 2008

The Board adjourned to closed session at 5:50 p.m. to discuss the matter noted above.

The Board reconvened to open session at 6:15 p.m.

President Shaikewitz reported that no action was taken and the Board had given direction to Legal Counsel.

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 October 21, 2008.

12. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 6:16 p.m.

Approved:

__________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary