Regular MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA

Tuesday, November 18, 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

Charles Hamilton, GM, CVWD

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 Abel, seconded by Director Frye, and unanimously carried to approve the Consent Calendar as amended.

4. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF October 27, 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 October 27, 2008

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

5. Legal MATTERS

A. Closed Session: Conference with Legal Counsel Relative to Existing Litigation: Pending STate Water Resources Control Board Cachuma Project Water Right Hearing on Water Right Permits 11308 and 11310, Pursuant to Government Code Section 549856.9(b)

The Board adjourned to closed session on the above item following item 8, at 5:04 p.m.

The Board reconvened to open session with item 9 at 5:20 p.m. President Shaikewitz reported that the General Manager was authorized by the Board to sign the Cachuma Confidentially Agreement.

6. District Business Report

A. Water Sales Report for October 2008

Ms Bailey presented this item and answered Directors’ questions.

B. September 2008 Revenue and Expense Report

Ms Bailey presented this item and answered Directors’ questions.

C. RESOLUTION No. 2049 TO TAX DEFER MEMBER CONTRIBUTIONS TO THE CALPERS RETIRMENT SYSTEM

Ms Bailey presented this item and answered Directors’ questions. Following discussion it was moved by Director Frye, seconded by Director Abel and carried by the following roll-call vote to adopt Resolution No. 2049 to tax-defer member contributions for the PERS retirement plan:

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

NOES: None

ABSENT: None

D. Resolution No. 2050 – Annual Inventory of District Lands and Air Space

Ms Bailey presented this item and answered Directors’ questions. Following discussion it was moved by Director Abel, seconded by Director Morgan and carried by the following roll-call vote to adopt Resolution No. 2050:

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

NOES: None

ABSENT: None

7. district Operations Report

A. Torito Road Main Replacement Project – Bid Results

Mr. Meier 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 bid from Tierra Contracting for Phase 1, 2 and 3 of the Torito Road Main Replacement Project

§ Appropriate funding in the estimated amount of $170,000 for Phase 1 of the project from the 1998-A bond funds

§ Appropriate funding in the estimated amount of $23,000 for Phase 2 of the project (as MWD’s cost share) from the 1998-A bond funds, subject to participation by the Torito Road Homeowners Association (TRHOA)

§ Appropriate funding in the estimated amount of $95,000 for Phase 3 of the project from the 1998-A bond funds, subject to the approval of Phase 2 work by the TRHOA

§ Authorize the Engineering Manager to meet with the TRHOA to present the project scope of work and bid results and obtain project costs share approval and funding for the work.

B. JPIA Recent District INspection and Followup Report

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

C. state water project supplemental water purchase and 2009 allocation report

Mr. Mosby presented this item and answered Directors’ questions. Following discussion it was moved by Director Abel, seconded by Director Morgan, and unanimously carried to ratify staff approval for the purchase of 129 acre-feet (AF) of SLO Dry Year Water at a base cost of $160/AF and appropriate funding in the amount of $20,640 from the Rate Stabilization Fund for this purchase.

D. carpinteria valley water district and southcoast conduit lateral production meter turnout problems

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

E. East Valley Ranch / Birnam Wood Groundwater Development Opportunity

Mr. Mosby presented this item and answered Directors’ questions. Following discussion it was moved by Director Morgan, seconded by Director Wilson and unanimously carried to approve the proposal from Cascade Well and Pump in the amount of $5,900 for test pumping East Valley Ranch Wells 6 and 8.

F. Tea Fire Incident – District Response and Actions

Mr. Mosby presented his report of District actions and operations during the Tea Fire. The Board discussed possible relief measures the District could take for those whose homes had been burned. Following discussion it was moved by Director Abel and seconded by Director Frye that the Board adopt the following response for the Tea Fire victims:

MWD Tea Fire Customer Disaster Relief Program

a. When a meter in the fire area was turned off during or immediately after the Tea Fire, and stays off through November 2008, all fees and charges for November 2008 waived.

b. Where home totally or partially destroyed by the fire, and owner contacts District to shut off meter, manager may waive fees for November 2008.

c. Where home is (1 or 2) and owner wants to use water in November, District charges lesser of pro-rate from October or actual usage for the time meter is on.

d. Where the meter has been turned off by District or at customer request, District will assess property and if home destroyed then District will lock off meter and discontinue service with no monthly service charge for period up to the date customer requests service to be reinitiated. Waiver shall be for one time only and shall extend no later than 12/1/2010.

“Destroyed” means that home was made uninhabitable as a direct result of the Tea Fire.

The motion was carried unanimously.

The Board discussed providing SFR customers with a 10 HCF increase in the block 1 quantity for the month of November 2008 because many customers used extra water to protect their property during the fire. It was moved by Director Frye, seconded by Director Wilson and carried unanimously that the District increase the SFR block 1 quantity for the month of November 2008 from 25 HCF to 35 HCF (an additional 7,480 gallons).

8. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

Mr. Mosby reported on District projects and operations not mentioned elsewhere in the meeting.

B. Water Works Operations REport

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

9. DIRECTOR AND STAFF MEETING REPORTS

A. Central Coast Water Agency Meeting of October 23, 2008

Director Shaikewitz reported on the subject meeting.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF October 27, 2008

Director Wilson reported on the subject meeting.

C. OPERATIONS COMMITTEE

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

D. FINANCE COMMITTEE

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

E. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee had been focused on Montecito Beautification Day. The District display was more extensive than in previous years, encouraging conservation. There will not be another Committee meeting before January 2009.

F. Long-term Water Supply Ad Hoc Committee

Directors Morgan and Shaikewitz reported that the activities of the Long-Term Water Supply Ad Hoc Committee had been covered elsewhere in the agenda.

10. AGENDA ITEM REQUESTS

There were no requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for December 16, 2008.

11. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:29 p.m.

Approved:

__________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary