REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, December 16, 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

None

2. Oath of Office — Abel, Morgan, and Wilson

Directors Abel, Morgan, and Wilson were sworn in to their seats on the Board by Mr. Mosby.

3. PUBLIC FORUM

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

4. CONSENT CALENDAR

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

5. Cachuma matters

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF November 24, 2008

Director Abel reported on the subject meeting and called the Directors’ attention to the materials presented in their agenda packets. COMB and CCRB held a farewell celebration for Chuck Evans at his retirement.

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF November 24, 2008

Director Abel reported on the subject meeting. Das Williams, representative from the City of Santa Barbara, will be the new president of COMB, replacing Chuck Evans, with Bob Lieberknecht as vice-president. COMB will be forming a special ad hoc committee to investigate whether it would be beneficial to form a staff-only Operating Committee similar to that of CCWA.

6. Board of Directors

A. 2009 District Reorganization

President Shaikewitz announced that an election would be held for President and Vice-President. Director Morgan nominated Director Shaikewitz for president and was seconded by Director Wilson; the motion carried unanimously.

Director Frye nominated Director Morgan for Vice-President, and was seconded by Director Wilson; the motion carried unanimously.

It was moved by Director Abel, seconded by Director Morgan, and unanimously carried to appoint the General Manager as Board Secretary; retain the firm of Price, Postel and Parma as District Counsel; appoint the Business Manager as Assistant Board Secretary and auditor; continue the $2,000,000 employee dishonesty policy; designate Santa Barbara Bank and Trust as depository for District funds; and designate the Montecito Water District offices as the place for all regular meetings of the Board of Directors, to be scheduled at 2:00 p.m. on the third Tuesday of every month, and on such additional Tuesdays as the Board President and/or Secretary determine to be necessary based on the demands of District business.

B. Request for input Regarding Various Board/Committee Assignments for 2009

President Shaikewitz asked all Directors to consider their participation on Board Committees and regional agencies and let him or Vice-President Morgan know of their preferences within the next few weeks.

7. District Business Report

A. Water Sales Report for November 2008

Ms Bailey presented this item and answered Directors’ questions.

B. October 2008 Revenue and Expense Report

Ms Bailey presented this item and answered Directors’ questions.

C. Resolution No. 2051 establishing the Debt Service, Debt Retirement and Capital Project Reserves

Director Morgan, representing the Finance committee, presented this item and he and Ms Bailey answered Directors’ questions. Following discussion, it was moved by Director Wilson, seconded by Director Frye, and carried by the following roll-call vote to adopt Resolution No. 2051 as presented:

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

NOES: None

ABSENT: None

ABSTAIN: None

8. district Operations Report

A. Bella Vista Treatment Plant Filter Maintenance PROJECT

Mr. Meier presented this item and he and Mr. Mosby answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Frye, and carried with one abstention to appropriate funding from the Operating Reserves in the amount of $57,700 for emergency filter repairs for both gravity filtration units at the Bella Vista Treatment Plant and authorize staff to contract with ERS Industrial Services to perform filter repairs for both units, with the provision that Mr. Meier be present during all repairs.

B. Distribution System Water Quality – Sampling Results for 2008 Fourth Quarter Trihalomethane and HAA5

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

C. SOUTH COAST CONDUIT BREAK AND WATER SERVICE OUTAGE

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

D. CATER WATER TREATMENT PLANT JOINT POWERS AGREEMENT

Director Shaikewitz, representing the Ad Hoc Long-Term Water Supply Committee, presented this item and he and Mr. Mosby answered Directors’ questions. Following discussion it was moved by Director Abel, seconded by Director Frye, and unanimously carried to authorize the General Manager to notify the City of Santa Barbara and the Carpinteria Valley Water District in writing of District’s intention to extend the Joint Exercise of Powers Agreement Providing for Water Treatment (Cater JPA) as specified in paragraph 4 of the Cater JPA dated July 5, 1978.

9. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

Mr. Mosby reported to the Board on projects and activities not covered elsewhere in the agenda. He presented his year-end summary of District operations and activities.

He reported on the progress of the conservation program. The Board directed the General Manager to have a regular conservation report posted on the District website.

Director Morgan inquired on the status of the letter to be sent to the County Board of Supervisors regarding the District’s position on the quagga mussel problem. Staff responded that a draft letter will be provided to the Board at the next meeting.

Mr. Mosby acknowledged the efforts of the Business Manager in the establishment of the new rate structure and the purchase of a new financial and billing system. The General Manager has provided Ms Bailey with an additional ten days of vacation time in 2009 in recognition of the extra time she worked in 2008 to implement the new rate structure and billing system.

B. Water Works Operations REport

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

10. DIRECTOR AND STAFF MEETING REPORTS

A. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF November 24, 2008

Director Wilson reported on the subject meeting.

B. OPERATIONS COMMITTEE

Directors Frye and Shaikewitz reported that the District is looking at developing additional sources of non-potable water. All other activities of the Operations Committee had been covered elsewhere in the agenda.

C. FINANCE COMMITTEE

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

D. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee had not met since the last Board meeting.

E. Long-term Water Supply Ad Hoc Committee

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

11. AGENDA ITEM REQUESTS

There were no requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for January 20, 2009. Director Frye asked that the next Finance Committee agenda include discussion of the requirement for agricultural customers to submit copies of their IRS Schedule F.

12. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 4:30 p.m.

Approved:

__________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary