Special Joint MEETING Minutes

BOARD OF DIRECTORS

Carpinteria Valley Water District (cvwd)

and

MONTECITO WATER DISTRICT (mwd)

Carpinteria Valley Water District Board Room

1301 Santa Ynez Ave, Carpinteria, CALIFORNIA

Thursday, October 2, 2008

4:00 PM

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

CVWD President Lemere called the special meeting of the Board of Directors of Carpinteria Valley Water District to order at 4:00 p.m. Thursday, October 2, 2008. As a jointly convened Board of Directors meeting with Montecito Water District, MWD President Shaikewitz called the special meeting of the Board of Directors of the Montecito Water District to order at the same time and location.

MWD Directors Present:

Directors Jan E. Abel, Samuel Frye, W. Douglas Morgan, and Richard Shaikewitz

MWD Directors Absent:

Larry Wilson

CVWD Directors Present

Directors Lemere, Lieberknecht, Drain, and Roberts

CVWD Directors Absent

Van Wingerden

Staff Present:

Tom Mosby, MWD General Manager

Charles Hamilton, CVWD General Manager

Karl Meier, MWD Engineering Manager

Bob McDonald, CVWD District Engineer

Terry Schwartz, Counsel — Price, Postel & Parma

2. PUBLIC FORUM

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

3. Ortega Reservoir Project

a) CLOSED SESSION PER GOVERNMENT CODE SECTION 54956.9(c) A Possibility of Litigation Exists in One Matter

At 4:10 p.m. MWD President Shaikewitz and CVWD President Lemere convened each respective Board in closed session per government code section 54956.9(c) – a possibility of litigation exists in one matter.

At 5:25 p.m. President Shaikewitz and President Lemere reconvened each respective Board in open session.

President Shaikewitz reported that a motion was made in closed session by Director Shaikewitz and seconded by Director Morgan that Price Postel and Parma be authorized to file a lawsuit against the responsible parties as determined by Price Postel and Parma to address and remedy the problem of leakage at the Ortega Reservoir, and that the motion carried by a 4 -0 vote with Director Wilson absent.

CVWD President Lemere reported that a motion made by Director Drain and seconded by Director Lieberknecht was approved by the Board in closed session by a 4 – 0 vote, with Director Van Wingerden absent, to authorize Price Postel and Parma to file a lawsuit against the responsible parties as determined by Price Postel and Parma to address and remedy the problem of leakage at the Ortega Reservoir.

4. ADJOURNMENT

There being no further business to come before the MWD and CVWD Boards of Directors, the meeting was adjourned at 5:37 p.m.

Approved:

_____________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary