Regular MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA

Tuesday, October 21, 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

Guests Present

Ray Stokes, CCWA Deputy Director (for a portion of the meeting)

2. PUBLIC FORUM

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

3. CONSENT CALENDAR

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

4. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF September 22, 2008

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

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF September 22, 2008

Director Abel reported on the subject meeting. She asked for a vote on whether or not she, as MWD representative to COMB, should vote in support of COMB contributing to funding of the County quagga mussel prevention program. It was moved by Director Frye, seconded by Director Morgan and unanimously carried that the Montecito Board not support the COMB cost sharing with the Co of SB in the quagga mussel preventative measures at Lake Cachuma.

5. District Business Report

A. Water Sales Report for September 2008

Ms Bailey presented this item and answered Directors’ questions.

B. August 2008 Revenue and Expense Report

Ms Bailey presented this item and answered Directors’ questions.

C. Fourth Quarterly Investment Report as of June 30, 2008

Ms Bailey presented this item and answered Directors’ questions.

D. Fourth Quarterly Budget Report as of June 30, 2008

Ms Bailey presented this item and answered Directors’ questions.

E. District Reserve Transfers

Ms Bailey and Director Morgan presented this item and answered Directors’ questions. Following discussion it was moved by Director Abel, seconded by Director Morgan and unanimously carried to approve the transfer of $350,000 into the Rate Stabilization Reserve as of June 30, 2008 and direct staff to transfer $1,000,000 into the existing Emergency Reserve until such time that a Debt service, Debt Retirement and Capital Outlay Reserve is established.

6. District Operations Report

A. Agricultural Property Inspections for Implementation of Ordinance 90

Mr. Mosby presented this item and he and Mr. Meier answered Directors’ questions. Following discussion, it was moved by Director Abel, seconded by Director Frye and unanimously carried to approve the content and format of the three agricultural property inspection letters outlined in the agenda packet.

B. Results from the Terminal Reservoir Water Quality Improvements Project

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

C. Water Supply Update for 2008/09 Water Year

Mr. Mosby presented this item and answered Directors questions.

D. Replacement of 2,000 Gallon Sodium Hypochlorite Storage Tank at Ortega Chlorination Station

Mr. Meier presented this item and answered Directors’ questions. Following discussion it was moved by Director Frye, seconded by Director Morgan and unanimously carried to appropriate funds in the amount of $5,053.10 from the District’s operating reserves for the replacement of the 2,000 gallon sodium hypochlorite tank located at the Ortega Chlorination station.

E. riven rock mutual water company – proposed multi-family classification protest and account reclassification

Mr. Mosby presented this item and answered Directors’ questions. Following discussion it was moved by Director Frye, seconded by Director Morgan and carried with one abstention to approve the request by Riven Rock Mutual Water Company for reclassification of their District meter from multi-family to single-family residential, subject to the conditions stipulated in the staff report on this item.

F. Conservation Program Update

Mr. Mosby reported on the status of the conservation program and the success to date.

7. GENERAL MANAGER’S REPORT

A. NEW POSITION AND ADJUSTMENT – WATER CONSERVATION SPECIALIST/ DISTRIBUTION OPERATOR 1/groundskeeper

Mr. Mosby presented this item and answered Directors’ questions. Following discussion, it was moved by Director Morgan, seconded by Director Frye and unanimously carried to:

§ Create a new job title, Water Conservation Specialist / Distribution Operator 1 / Groundskeeper, as a full-time position with duties as indicated in the job description;

§ Approve the job description for the new position as amended;

§ Assign a salary range of 200 on the District’s Step and Range Salary Schedule;

§ Transfer current employee Mike Clark from the Groundskeeper / Distribution Operator 1 position to the new Water Conservation Specialist / Distribution Operator 1 / Groundskeeper position and place him at Step E; and

§ Make the position change and pay increase retroactive to July 1, 2008.

B. Monthly Operations Report (Oral)

Mr. Mosby updated the Board on current District projects and operations not covered elsewhere in the agenda.

C. Water Works Operations REport

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

8. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meeting Of September 25, 2008

Director Shaikewitz reported that CCWA has not met for three months, but will be meeting in the next week. He discussed the proposed CCWA commitment to participate in the engineering of the peripheral canal. He indicated to the Board that he would require the Board’s authorization to vote on this item.

Director Shaikewitz reported that BFH&S law firm (represented by Steve Amerikaner) has presented a new agreement to CCWA regarding conflict of interest. Counsel discussed the matter with the Board, particularly with regard to BFH&S representation of either CCWA or ID#1 in matters related to the exchange agreement. It was the consensus of the Board that Director Shaikewitz vote in favor of the agreement with additional material agreed to by Mr. Amerikaner that BFH&S not represent either CCWA or ID#1 in matters pertaining to the exchange agreement.

Later in the meeting, Director Shaikewitz introduced Mr. Ray Stokes, CCWA Deputy Director. Mr. Stokes presented the proposed agreement to participate in the State Water Contractors’ Joint Powers Authority for the DWR initial planning and design funding agreement for the peripheral canal for a total of $140,000,000 split between state and federal contractors. DWR has asked for contractors to agree to pay the costs over a three-year period, after which bonds would be issued to repay the contractors if the program goes forward. Mr. Stokes answered Directors’ questions on the subject.

Following discussion it was the consensus of the Board that Director Shaikewitz be directed to vote in favor of the agreement as MWD Representative to CCWA.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF September 22, 2008

Director Wilson reported on the subject meeting.

C. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee met on October 20 to discuss MWD’s presence at Montecito Beautification Day. The Committee is working to increase the District’s participation with a larger display, more items of information to distribute, and premiums to be given to those who sign up to schedule a water checkup. She noted that another “On the Water Front” column will be in the next Montecito Journal.

D. OPERATIONS COMMITTEE

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

E. FINANCE COMMITTEE

Directors Morgan and Wilson reported that the activities of the Finance Committee had been covered elsewhere in the agenda.

9. AGENDA ITEM REQUESTS

There were no requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for November 18, 2008.

10. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:25 p.m.

Approved:

__________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary