REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, December 19, 2006

2:00 P.M.

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

Vice-President Wilson called the meeting to order at 2:00 p.m.

Directors Present:

Directors Jan E. Abel, Sam Frye, Robert W. Puddicombe (left meeting at approximately 3:30 p.m.), Richard Shaikewitz, and Larry Wilson

Directors Absent:

None

Staff Present:

Bob Roebuck, General Manager

Toni Bailey, Business Manager

Tom Mosby, Engineering Manager

Mark Manion, for District Counsel

Lois Werner, Recording Secretary

2. PUBLIC FORUM

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

3. CONSENT CALENDAR

Following discussion, it was moved by Director Abel, seconded by Director Puddicombe, and unanimously carried (Directors Frye and Shaikewitz did not participate in the vote) to approve the consent calendar as presented.

(Items 9 and 7 were moved up in the agenda)

9. Board of Directors

A. Swearing in of Directors Frye, Puddicombe and Shaikewitz

Directors Frye, Puddicombe, and Shaikewitz were formally sworn in to their seats on the Board by Mr. Roebuck.

B. 2007 District Reorganization

Vice-President Wilson announced that an election would be held for President and Vice-President. Director Puddicombe nominated Director Abel as President of the Board, the nomination was seconded by Director Frye and carried with Director Abel abstaining. Director Abel nominated Director Puddicombe as Vice-President of the Board; Director Shaikewitz seconded the motion and it was carried with Director Puddicombe abstaining.

Director Shaikewitz suggested that the bond amounts for the Board Secretary and Assistant Board Secretary be raised to $2,000,000 because they handle large sums. The Board asked that staff look into the cost of raising the bond amounts in the future. Following discussion, it was moved by Director Abel, seconded by Director Frye, and unanimously carried to appoint the General Manager as Board Secretary, and set a $100,000 bond; retain the firm of Price, Postel and Parma as District Counsel; appoint the Business Manager as Assistant Board Secretary and auditor, and set a $100,000 bond; 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.

C. Request for input Regarding Various Board/Committee Assignments for 2007

Director Abel requested that Directors consider their present and preferred committee assignments and provide her with their preferences well before the January Board meeting.

7. District Business Report

A. California Special Districts Association Membership

Director Wilson presented this request that the District become a member of the California Special Districts Association. Following discussion, it was the consensus of the Board that membership in the CSDA would not be desirable at this time.

B. 2006/07 Review of Water Rates and Service Charges

Ms Bailey introduced this item. Following discussion, it was moved by Director Abel, seconded by Director Shaikewitz, and carried on a vote of three to two to follow the schedule to implement across-the-board 8% rate changes by March 1, 2007, authorize staff to schedule a public hearing, and direct staff to engage Rauch Communication Consultants to prepare and mail a notification of public hearing and newsletter, and to set Board workshops on more complex structural changes to rates and charges for a later time.

4. Cachuma matters

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF November 27, 2006

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 November 27, 2006

Director Abel reported on the subject meeting.

5. LEGAL MATTERS

A. Recent and Pending Legal Matters REview

Mr. Manion informed the Board that general counsel for Goleta Water District (GWD), Russell Ruiz, has resigned and Chip Wullbrandt has been asked to serve as interim general counsel. This will be done with the understanding that if a conflict of interest were to occur, GWD would find other representation, and would waive any conflict in Price Postel & Parma’s representation of MWD.

B. Response to Grand Jury Questionnaire Regarding Certificates of Participation

Ms Bailey presented this item and answered Directors’ questions.

Director Puddicombe left at this point.

C. Closed session pursuant to Government Code Section 54957(b)(1) – Public Employee Discipline / Dismissal / Release

The Board adjourned to closed session at 3:40 p.m.

The Board reconvened to open session at 4:00 p.m. Vice President Wilson reported that there was no reportable action from the closed section.

Legal Counsel departed at this point

6. district Operations Report

A. Ortega Reservoir Improvement Project Status Report

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

B. Doulton Reservoir Expansion Project – Project Alternative Analysis Proposal From Penfield and Smith, Engineers

Mr. Mosby and Mr. Roebuck presented this item and answered Directors’ questions. Following discussion, it was moved by Director Frye, seconded by Director Shaikewitz, and unanimously carried to award a contract in an amount not to exceed $22,000 to Penfield and Smith Engineers for the Doulton Reservoir Expansion Project Alternative Analysis.

C. Juncal Auxiliary Dam expanded Deflection Monitoring Program Status Report

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

D. Award of Bid – MWD 2006/07 Water Main Replacement Program – Alston Road and Summerland

Mr. Mosby presented this item and answered Directors’ questions. Following discussion, it was moved by Director Abel, seconded by Director Wilson, and unanimously carried to award a contract to Lash Construction in the amount of $501,181 for the Alston Road and Summerland projects and appropriate funding in the amount of $551,299 (including a 10% contingency) from the 1998A bond funds for these projects.

8. Resolutions

A. Resolution No. 2020 – Authorizing Signers for Checking Account

It was moved by Director Abel, seconded by Director Frye, and carried by the following roll-call vote to approve Resolution No. 2020 as presented:

AYES: Directors Abel, Frye, Shaikewitz, and Wilson

NOES: None

ABSTAIN: None

B. Resolution No. 2021 – Annual Inventory of District Lands and Air Space

It was moved by Director Frye, seconded by Director Abel, and carried by the following roll-call vote to approve Resolution No. 2021 as presented:

AYES: Directors Abel, Frye, Shaikewitz, and Wilson

NOES: None

ABSTAIN: None

C. REsolution No. 2022 – Resolution Of Appreciation for Robert M. Edmonston

It was moved by Director Abel, seconded by Director Frye, and carried by the following roll-call vote to approve Resolution No. 2022 as presented:

AYES: Directors Abel, Frye, Shaikewitz, and Wilson

NOES: None

ABSTAIN: None

D. REsolution No. 2023 – Resolution Of Appreciation for W.W. “Rick” Drewry

It was moved by Director Abel, seconded by Director Frye, and carried by the following roll-call vote to approve Resolution No. 2023 as presented:

AYES: Directors Abel, Frye, Shaikewitz, and Wilson

NOES: None

ABSTAIN: None

10. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

Mr. Roebuck presented his ongoing projects list and answered Directors’ questions about projects not covered elsewhere in the agenda.

11. DIRECTOR AND STAFF MEETING REPORTS

A. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF November 27, 2006

Director Wilson reported that the subject meeting did not take place.

B. CEntral Coast Water Agency Meeting of November 16, 2006

Director Puddicombe was not present to report.

C. LAFCO Meeting of November 2, 2006

Director Wilson reported on the subject meeting.

12. COMMITTEE REPORTS/RECOMMENDATIONS

A. OPERATIONS COMMITTEE

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

B. FINANCE COMMITTEE

Director Wilson reported that the activities of the Finance Committee had been covered elsewhere in the meeting.

C. PUBLIC INFORMATION COMMITTEE

The Public Information Committee did not meet in November.

13. Board information Items

No action was taken on these informational items presented to the Board.

14. 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 16, 2007.

15. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:10 pm.

Approved:

__________________________

Larry Wilson, Vice-President

Attest:

__________________________________

Robert L. Roebuck, Secretary