REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, California

TUESDAY, September 18, 2007

2:00 P.M.

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

President Abel called the meeting to order at 2:03 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

Toni Bailey, Business Manager

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

David Strauss, District Customer

2. PUBLIC FORUM

Mr. Strauss addressed the Board concerning the meter reading service and changes to the water rate structure at other local districts.

3. CONSENT CALENDAR

Following discussion, it was moved by Director Frye, seconded by Director Morgan, and unanimously carried to approve the Consent Calendar as presented.

4. Time Certain Item — 2:10 p.m.

A. Public Hearing: Ordinance No. 88 — Fixing the Rate of Daily Compensation for Directors

Director Abel opened the public hearing at 2:17 p.m. There being no members of the public present who wished to address the Board on this subject, the President closed the public hearing at 2:19 p.m. Following Board discussion, it was moved by Director Wilson, seconded by Director Morgan, and carried by the following roll-call vote to approve Ordinance No. 88 as presented.

AYES: Directors Abel, Frye, Morgan, Shaikewitz, and Wilson

NOES: None

ABSENT: None

ABSTAIN: None

5. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF August 27, 2007

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

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF August 27, 2007

Director Abel reported on the subject meeting.

6. Legal MATTERS

A. Recent and Pending Legal Matters Review (Oral)

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

B. ACWA Committee Appointment Nominees for the 2008-2009 Term

Following discussion on this item, it was moved by Director Frye, seconded by Director Morgan, and unanimously carried to nominate Mr. Wullbrandt for the ACWA State Legislative and Federal Affairs Committees.

7. District Business Report

A. Water Sales Report for August 2007

Ms Bailey presented this report and answered Directors’ questions.

B. July 2007 Revenue and Expense Report

Ms Bailey presented this report and answered Directors’ questions

C. Liability Insurance and Premium Payment

Ms Bailey presented this report and answered Directors’ questions.

D. 2006/07 Annual Budget Report

Ms Bailey presented this report and answered Directors’ questions.

8. district Operations Report

A. Ortega Reservoir Project Status Report (Oral)

Mr. Roebuck reported on the status of this project and answered Directors’ questions.

B. US Geological Survey (USGS) / MWD Cooperative Water Resources Program at Jameson Lake

Mr. Roebuck introduced this item and answered Directors’ questions. It was moved by Director Shaikewitz, seconded by Director Morgan, and unanimously carried to approve the 2007/08 budgeted expenditure of $12,350 as MWD’s share of costs for continuation of the USGS cooperative water resources program at Jameson Lake for the period of November 1, 2007 to October 31, 2008 and authorize the General Manager to execute the Joint Funding Agreement.

C. Coast Village Road / Hot Springs Road Roundabout – Water Main Relocation

Mr. Roebuck introduced this item and answered Directors’ questions. It was moved by Director Shaikewitz, seconded by Director Morgan, and unanimously carried to approve and authorize the Board President to execute for recording the Notice of Completion for the Coast Village and Hot Springs Road Water Main Relocation Project.

D. Danielson Road Water Main Replacement Project

Mr. Roebuck 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 authorize the General Manager to complete the relocation of the Danielson Road water main using Lash Construction on a labor and material daily work contract.

E. Monthly Water Supply Report

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

9. GENERAL MANAGER’S REPORT

A. General Manager Succession

The Board discussed the acceptance of General Manager position by Thomas R. Mosby and recruitment for the Engineering Manager position

B. Conservation Rate Restructuring DISCUSSION and Implementation Schedule

Mr. Roebuck and Ms Bailey introduced this item for Board discussion.

C. Ongoing Projects Update

Mr. Roebuck presented his report on ongoing projects not covered elsewhere in the agenda.

Ms Bailey reported on the status of the project to acquire new financial and utility billing software.

D. Water Works Operations Report

Mr. Roebuck presented this item for Board information.

---------------------------------------------- Legal Counsel Departs----------------------------------------------

10. DIRECTOR AND STAFF MEETING REPORTS

A. Central Coast Water Agency Meeting of August 23 , 2007;

Director Shaikewitz reported on the subject meeting.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF August 27, 2007

Director Wilson reported on the subject meeting.

11. COMMITTEE REPORTS/RECOMMENDATIONS

A. OPERATIONS COMMITTEE

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

B. FINANCE COMMITTEE

Directors Morgan and Wilson reported that the activities of the Finance Committee had been covered elsewhere in the agenda. They noted that they will be discussing a planning document based on the ten-year plan.

C. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Information Committee had met on September 12, 2007 to discuss the upcoming newsletter and the public information campaign that will precede any move toward conservation pricing. Directors will be receiving copies of the plan for the PI campaign within the next week.

12. AGENDA ITEM REQUESTS

Director Frye requested that the PI Committee discuss the matter of bringing Committee agendas to the webpage and then bring that item to the Board. There were no other requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for October 16, 2007.

13. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 4:29 pm.

Approved:

__________________________

Jan E. Abel, President

Attest:

__________________________________

Robert L. Roebuck, Secretary