Regular MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA

Tuesday, October 20, 2009

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, W. Douglas Morgan, Richard Shaikewitz, and Larry Wilson

Directors Absent:

Director Samuel Frye

Staff Present:

Tom Mosby, General Manager

Chip Wullbrandt, District Counsel

Toni Bailey, Business Manager

Lois Werner, Recording Secretary

Daniel Rodriguez, Distribution Superintendent

Chad Hurshman, Treatment Supervisor

Guests Present

Bob Roebuck, District Customer

2. PUBLIC FORUM

Mr. Roebuck reported his experience with the District’s Conservation Specialist, Mike Clark, when he had a leak in his service line. He commended Mr. Clark’s helpfulness.

3. CONSENT CALENDAR

Following discussion, it was moved by Director Abel, seconded by Director Morgan, and unanimously carried to approve minutes of September 15 and October 12, 2009 as amended. It was moved by Director Morgan seconded by Director Abel and carried on a vote of three to one to approve the Payment of Bills for September, withholding the payment of $80,302.60 to Price Postel & Parma until President Shaikewitz can review the bills with the attorneys. It was moved by Director Morgan, seconded by Director Abel and unanimously carried to approve the Investment of District Funds as presented. President Shaikewitz asked the Finance Committee to consider at their next meeting if the Payment of Bills should be dealt with in a different manner in the future.

4. Appeals

A. Appeal by Mr. Eduardo Mendez / Account No. 07-1181-01

Director Abel presented this item for the Appeals Committee. Mr. Mendez was not present. Following discussion it was moved by Director Shaikewitz, seconded by Director Morgan, and unanimously carried to issue a credit in the amount of $141.25 to Mr. Mendez’s account, the amount charged above the first tier rate for the water lost in his irrigation line leak.

B. Appeal by Mrs. R.C. Lewis / Account No. 13-0550-00

Director Abel presented this item for the Appeals Committee. Mrs. Lewis was not present. Following discussion it was moved by Director Shaikewitz, seconded by Director Morgan, and unanimously carried to issue a credit in the amount of $98.65 to Mrs. Lewis’s account, the amount charged above the first tier rate for the water lost in her underground leak.

C. Appeal by Mr. Barry Snyder / Account No. 12-0321-03

Director Abel presented this item for the Appeals Committee. Mr. Snyder was not present. Following discussion it was moved by Director Shaikewitz, seconded by Director Morgan, and unanimously carried to issue a credit in the amount of $1,470.40 to the Snyder’s account, the amount charged above the first tier rate for the water lost in their irrigation line leak.

5. Legal Matters

A. Time Certain – 4:30: Closed Session – Pursuant to Government Code Section 54956.9(a), Existing Litigation, Montecito Water District Et Al vs. Penfield & Smith Engineers et al; Santa Barbara Superior Court Case Number 1303752

This item was tabled until a later meeting.

6. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF September 28, 2009

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

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF September 28, 2009

Director Abel reported on the subject meeting.

C. Update on MWD / COMB Capital Projects Contribution Agreement and MWD / Cachuma Southcoast Member Units Indemnification Agreement

Mr. Wullbrandt reported to the Board on the status of this item.

7. District Business Report

A. Water Sales Report for September 2009

Ms Bailey presented this report and answered Directors’ questions.

B. August 2009 Revenue and Expense Report

Ms Bailey presented this report and answered Directors’ questions.

C. 4th Quarter Budget Report

Ms Bailey presented this report and answered Directors’ questions.

D. Incode Lease Payoff analysis

Ms Bailey presented this report and answered Directors’ questions. Following discussion, it was moved by Director Morgan, seconded by Director Wilson, and unanimously carried to authorize staff to pay off the principal balance of the Incode Capital Lease in the estimated amount of $96,820.54 and appropriate funds for this payment from the Operating Reserves.

E. Price Postel & Parma Invoicing for professional fees, Account Project cost Reporting Detail

Director Morgan introduced this item for the Finance Committee. The Board requested that Price, Postel & Parma more thoroughly itemize bills for all future work, showing a more detailed breakdown of time spent on each item.

8. District Operations Report

A. Water Supply Update for 2009/10 Water Year

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

B. 1395 oak creek canyon – highline relocation project and grant of easement

Mr. Mosby presented this item and answered Directors’ questions. Following discussion it was moved by Director Shaikewitz, seconded by Director Morgan, and unanimously carried to approve and accept the grant of easement for the new highline location from Mr. Tweddle, authorize the recording of the grant of easement by the District, and approve and authorize the signing of the quitclaim of the existing easements by MWD, to be recorded after the completion of the highline relocation.

C. mwd / cvwd service boundary reorganization

1) resolution No. 2062 – Approving Application to Initiate Proceedings

2) letters to homeowners in affected service area

3) proposed mwd / cvwd service cooperation agreement

Mr. Mosby introduced these items and answered Directors’ questions. Following discussion it was moved by Director Morgan, seconded by Director Wilson, and carried by the following roll call vote to approve and adopt Resolution No. 2062 as amended:

AYES: Directors Abel, Morgan, Shaikewitz, and Wilson

NOES: None

ABSENT: Director Frye

ABSTAIN: None

It was moved by Director Abel, seconded by Director Morgan, and carried with one abstention to approve the Letter to Affected Property Owners as amended. It was moved by Director Shaikewitz, seconded by Director Morgan and carried unanimously to approve the MWD/CVWD Service Cooperation Agreement as amended.

D. usgs/mwd 2009/10 cOOPERATIVE wATER rESOURCES pROGRAM AT jAMESON lAKE

Mr. Mosby introduced this item and answered Directors’ questions. Following discussion it was moved by Director Abel, seconded by Director Wilson, and unanimously carried to approve the expenditure of $13,300 for District’s share of the costs for the cooperative water resources program at Jameson Lake, November 1, 2009 – October 31, 2010, and authorize the General Manager to execute the Joint Funding Agreement.

E. national marine fisheries service – southern california steelhead recovery plan (Oral)

Mr. Mosby discussed with the Board the proposed District response to the NMFS Draft Southern California Steelhead Recovery Plan; he has requested a proposal to do the letter from Jean Baldridge at Entrix, Inc., who wrote the response from CCRB.

F. Water Works Operations REport

Mr. Mosby distributed this report at the meeting.

9. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

Mr. Mosby reported on District projects and activities not covered elsewhere in the agenda. He introduced Mr. Rodriguez and Mr. Hurshman to briefly discuss the rising percentage of unaccounted water in the District and the efforts staff is undertaking to find the problem. The Board asked that staff bring a report to the Board every month on progress made in this area.

10. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meeting Of September 24, 2009

Director Shaikewitz reported that the subject meeting was cancelled due to lack of a quorum.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF September 28, 2009

Director Wilson reported on the subject meeting, where the head of the air pollution control district spoke on the regulation of diesel motors.

C. PUBLIC INFORMATION COMMITTEE

1. Montecito Beautification Day signups

Director Abel reported on the last meeting of the PI Committee. The Committee has decided not to produce a fall newsletter. The next newsletter will be produced in early 2010. She distributed a signup sheet for Directors to staff the District table at the annual Montecito Beautification Day, November 7, 2009.

D. OPERATIONS COMMITTEE

Director Shaikewitz reported that the activities of the Operations Committee had been covered elsewhere in the agenda.

E. FINANCE COMMITTEE

Director Morgan reported that the Finance Committee would be meeting on October 21 with bond counsel to discuss different scenarios for refinancing the 1998A Bonds. The other activities of the Finance Committee were covered elsewhere in the agenda.

F. Ad Hoc Water Supply Committee

Director Morgan reported that the Ad Hoc Water Supply Committee had not met since the last regular Board meeting.

11. AGENDA ITEM REQUESTS

There were no additional requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for November 17, 2009.

12. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:14 p.m.

Approved:

_____________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary