REGULAR MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 San Ysidro Road, Montecito, CAlifornia

TUESDAY, September 15, 2009

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

Chip Wullbrandt, District Counsel

Toni Bailey, Business Manager

Lois Werner, Recording Secretary

Guests Present

Kate Rees, General Manger, COMB

Doug Brown, COMB Bond Counsel

Janet Gingras, COMB

Charles Hamilton, General Manager, Carpinteria Valley Water District

Marian Breitbart, KNN Public Finance

Chuck Evans, Retired COMB Director

Bill Ferguson, City of Santa Barbara

2. PUBLIC FORUM

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

3. Comb Bond Issue

A. Consideration of Participation in the COMB CIP 2009 Revenue Bond and the COMB 2009 Revenue Bond Indemnification AgreemenT

President Shaikewitz introduced this item. During discussion Directors asked for clarification on various points from Mr. Brown, Ms Rees, Ms Breitbart, and Ms Gingras. Following discussion Director Frye moved that staff work with Mr. Brown to develop an agreement to confirm MWD participation in the Second Barrel project up to a specified dollar amount and the other COMB CIP projects with rights of review; and a document approving, without MWD participation, the issuance of the COMB bonds. The motion was seconded by Director Morgan. Following further discussion the motion was carried on a vote of four to one with Director Wilson opposed.

4. CONSENT CALENDAR

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

5. LEGAL MATTERS

A. Recent and Pending Legal Matters REview – Oral Report

Mr. Wullbrandt reported on legal and legislative items of interest to the Board.

B. Selection of Conflict Counsel for Proposed District Boundary Reorganization Project

President Shaikewitz introduced this item and noted that he had requested that Mr. Wullbrandt recommend an attorney not affiliated with Price Postel and Parma to serve as Conflict Counsel in the boundary reorganization project with Carpinteria Valley Water District. Mr. Wullbrandt suggested Mr. Rick Battles. It was moved by Director Abel, seconded by Director Frye and unanimously carried to hire Mr. Battles as conflict counsel for the proposed District Boundary Reorganization Project.

C. Closed Session – Pursuant to Government Code Section 54956.9(a), Existing Litigation, Montecito Water District Et Al vs. Penfield & Smith Engineers et al; Santa Barbara Superior Court Case Number 1303752

D. Closed Session – CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code section 54956.9(b): one case

The Board adjourned to closed session on the above two items at 3:52 p.m.

The Board reconvened in open session at 4:35 p.m. President Shaikewitz reported that the Board had given direction to Counsel and staff with regard to both items.

6. Cachuma Matters

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF August 31, 2009

Director Abel reported on the subject meeting and called the Directors’ attention to the materials provided in their agenda packets.

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF August 31, 2009

Director Abel reported on the subject meeting.

7. Board of Directors

A. Appointment of Director Shaikewitz to attend ACWA/JPIA Conference sessions as District Representative

The Board approved Director Shaikewitz to serve as the District Representative to ACWA/JPIA at the Fall Conference, November 30 and December 1, 2009.

8. District Business Report

A. 2009 Financial Audit

Ms Bailey presented this report and answered Directors’ questions.

B. Water Sales Report for August 2009

Ms Bailey presented this report and answered Directors’ questions.

C. July 2009 Revenue and Expense Report

Ms Bailey presented this report and answered Directors’ questions.

9. district Operations Report

A. 3^rd Quarter 2009 TTHM/HAA5 Report

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

B. national marine fisheries service – southern california steelhead recovery plan

Mr. Mosby and Mr. Wullbrandt presented this item and answered Directors’ questions. Following discussion, it was moved by Director Frye, seconded by Director Abel, and unanimously carried to issue a letter to the National Marine Fisheries Service requesting a 60-day extension on the public comment period for the Draft Southern California Steelhead Recovery Plan.

C. Water Works Operation Report

Mr. Mosby distributed this report at the meeting and answered Directors’ questions.

10. GENERAL MANAGER’S REPORT

A. Monthly Operations Report (Oral)

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

11. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meeting of August 27, 2009

Director Shaikewitz reported that the subject meeting was cancelled, but he had participated in the meeting of a CCWA ad hoc committee to which he was appointed.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF August 24, 2009

Director Wilson reported on the subject meeting.

C. PUBLIC INFORMATION COMMITTEE

Director Abel reported that the Public Information Committee had not met since the last Board meeting but was scheduled to meet on September 16.

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 Wilson and Morgan reported that the Finance Committee had not met since the last Board meeting.

F. Ad Hoc Water Supply Committee

Directors Morgan and Shaikewitz reported that the Ad Hoc Water Supply Committee had not met since the last Board meeting.

12. AGENDA ITEM REQUESTS

The Board requested that the matter of unaccounted water be added to the agenda for the next regular Board meeting scheduled for October 20, 2009.

13. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:05 p.m.

Approved:

_____________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary