REGULAR MEETING Mintues

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, December 21, 2010

2:00 P.M.

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

President Morgan 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

Chip Wullbrandt, District Counsel

Lois Werner, Recording Secretary

Guests Present

None

2. PUBLIC FORUM

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

3. CONSENT CALENDAR

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

4. Cachuma matters

A. CACHUMA CONSERVATION RELEASE BOARD MEETINGs OF November 22 and December 20, 2010

Director Morgan reported on the subject meetings and called Directors’ attention to the materials presented in their agenda packets.

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETINGs OF November 22 and December 20, 2010

Director Morgan reported on the subject meetings and called Directors’ attention to the materials presented in their agenda packets.

5. Board of Directors

A. 2011 District Reorganization

President Morgan announced that an election would be held for President and Vice-President. Director Shaikewitz nominated Director Frye as president; Director Frye was elected President.

Director Shaikewitz nominated Director Morgan for Vice-President. Director Morgan was elected Vice-President.

It was moved by Director Shaikewitz, seconded by Director Frye, and unanimously carried to appoint the General Manager as Board Secretary.

It was moved by Director Shaikewitz, seconded by Director Frye, and unanimously carried to appoint the Business Manager as Assistant Board Secretary and auditor.

It was moved by Director Frye, seconded by Director Shaikewitz, and unanimously carried to continue the $2,000,000 employee fidelity policy;

It was moved by Director Frye, seconded by Director Shaikewitz and unanimously carried to designate and Santa Barbara Bank and Trust and Wells Fargo Bank as depositories for District funds.

It was moved by Director Frye, seconded by Director Wilson, and unanimously carried to 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.

It was moved by Director Frye, seconded by Director Abel, and carried by a vote of four to one to retain the firm of Price, Postel and Parma as District Counsel.

B. Request for input Regarding Various Board/Committee Assignments for 2011

Mr. Mosby asked all Directors to consider their participation on Board Committees and as MWD representatives to regional agencies and let incoming President Frye know their preferences in advance of the January Board meeting.

6. District Business Report

A. Water Sales Report for November 2010

Ms Bailey presented this report and answered Directors’ questions.

B. October 2010 Revenue and Expense Report

Ms Bailey presented this report and answered Directors’ questions.

C. 2009/10 Financial Audit Progress

Ms Bailey presented this item and answered Directors’ questions.

D. Selection of Independent Financial Auditor

Ms Bailey presented this item and answered Directors’ questions. Following discussion it was moved by Director Frye, seconded by Director Shaikewitz, and unanimously carried to approve the bid and proposed scope of services from Charles Z., Fedak & Company, dated November 11, 2010, to perform the District’s financial audits for the fiscal years ending June 30, 2011, 2012, and 2013 with an option to extend the engagement for two additional years. The not to exceed amounts of the bid being $21,250 for 2011, $22,100 for 2012, and $22,950 for 2013

E. Classification, Compensation, and Benefits Study Progress

Ms Bailey presented this item and answered Directors’ questions.

F. Resolution No. 2078: Inventory of District Lands and Air Space

Mr. Mosby presented this item and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Frye and carried by the following roll-call vote to adopt Resolution No. 2078:

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

NOES: None

ABSENT: None

7. district Operations Report

A. Barker Pass PUmp Station Electrical Annex – Status Report

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

B. PRoposed extension of Tea Fire Suspension of Water Service Charges For Properties with County Extensions

Mr. Mosby presented this item and answered Directors’ questions. Following discussion, it was moved by Director Shaikewitz, seconded by Director Wilson, and unanimously carried to extend the District’s Tea Fire Relief Program through December 31, 2011 for the four remaining properties where owners of homes lost in the Tea Fire have not been able rebuild or obtain building permits and the meters have been locked off at the owners’ request since November 2008.

C. Unaccounted Water and Action Status Report

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

D. Water Works Operations REport

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

8. GENERAL MANAGER’S REPORT

A. Ongoing Projects Update

Mr. Mosby reported on District projects and activities not covered elsewhere in the agenda.

9. DIRECTOR AND STAFF MEETING REPORTS

A. Report on ACWA Fall Conference November 30 – December 3, 2010

Directors Morgan and Shaikewitz and Counsel Wullbrandt reported on the ACWA Fall Conference.

B. Central Coast Water Authority Meetings Of November 10 and 19, 2010

Director Shaikewitz reported that CCWA did not meet in November.

C. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF November 19, 2010

Director Wilson reported on the subject meeting.

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 meeting.

F. PUBLIC INFORMATION COMMITTEE

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

12. AGENDA ITEM REQUESTS

Director Shaikewitz requested that the policy for Legal Counsel’s attendance at meetings be included on the agenda for the next regular Board meeting scheduled for January 18, 2011.

13. ADJOURNMENT

There being no further business to come before the Board, the meeting was adjourned at 4:09 p.m.

Approved:

_____________________________

Samuel Frye, President

Attest:

__________________________________

Tom Mosby, Secretary