Regular MEETING Minutes

BOARD OF DIRECTORS

MONTECITO WATER DISTRICT

583 SAN YSIDRO ROAD, MONTECITO, CALIFORNIA

Tuesday, November 17, 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, W. Douglas Morgan, Richard Shaikewitz, and Larry Wilson

Directors Absent:

Director Samuel Frye

Staff Present:

Tom Mosby, General Manager

Chip Wullbrandt, District Counsel

Toni Bailey, Business Manager

Lois Werner, Recording Secretary

Guest Present

Bert Bertrando, Goleta Water District

Matt Bloise, Santa Barbara News-Press

Janet Gingras, COMB

Kate Rees, COMB/CCRB

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 Abel, seconded by Director Morgan, and unanimously carried to approve the Consent Calendar as revised.

4. Appeal

A. Appeal by Mr. Charles Phillips, Account No. 06-1561-08

Director Abel presented this item for the Appeals Committee. Following discussion it was moved by Director Shaikewitz, seconded by Director Morgan, and unanimously carried to apply the SFR block 1 rate to all water used in August 2009 on Mr. Phillips’ account over and above historical August usage, and change the amount of the late charge to reflect the revised August charges. Total credit to Mr. Phillips’ account will be $1,092.39.

5. Legal Matters

A. Recent and Pending Legal Matters Review – Oral Report

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

B. 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

The meeting adjourned to closed session on the above matter at 2:18 p.m.

The meeting reconvened in open session at 2:32 p.m. President Shaikewitz reported that the Board had received a report from Counsel.

6. Cachuma MATTERS

A. CACHUMA CONSERVATION RELEASE BOARD MEETING OF October 26, 2009

Director Abel reported on the subject meeting.

B. CACHUMA OPERATION AND MAINTENANCE BOARD MEETING OF October 26, 2009

Director Abel reported on the subject meeting.

7. Resolution

A. Resolution No. 2063 – Resolution of Appreciation for Louise Chadwick – 25 Years of Service

The Board approved Resolution No. 2063 for Louise Chadwick, in appreciation for 25 years of service, by the following roll-call vote.:

AYES: Directors Abel, Morgan, Shaikewitz, and Wilson

NOES: None

ABSENT: Director Frye

The resolution was read in the meeting with Ms Chadwick present.

8. District Business Report

A. Water Sales Report for October 2009

Ms Bailey presented this report and answered Directors’ questions.

B. September 2009 Revenue and Expense Report

Ms Bailey presented this report and answered Directors’ questions.

C. 1^st Quarter Investment Report

Ms Bailey presented this report and answered Directors’ questions.

D. Banking Services at Montecito Bank & Trust

Ms Bailey presented this report and answered Directors’ questions. Following discussion it was moved by Director Morgan, seconded by Director Abel, and unanimously carried to authorize the opening of business checking and savings accounts with Montecito Bank & Trust.

E. TRANSFER OF RESERVES TO DEBT SERVICE, DEBT RETIREMENT AND CAPITAL REPLACEMENT RESERVE

It was moved by Director Abel, seconded by Director Morgan, and unanimously carried to transfer $1,000,000 from the Operating Reserves to the Debt Service, Debt Retirement and Capital Replacement Reserve.

F. Legal Billing Procedures and Payment Status of September Price Postel & Parma Invoice

President Shaikewitz presented this item. Following discussion, it was moved by Director Morgan, seconded by Director Abel, and carried with one abstention to request that all future invoices from PP&P be prepared using “Good Timekeeping Practices” and to pay the outstanding September invoice amount of $20,075.65 on receipt and approval of the more descriptive invoice.

9. District Operations Report

A. COMB CIP Member Unit funding and participation update

Mr. Mosby introduced this item and he and Ms Rees answered Directors’ questions. Mr. Bertrando outlined his own view of the proposal; the Goleta Water Board had not yet voted on this matter and their official position was unknown. Following discussion it was moved by Director Shaikewitz to:

1. Approve Montecito Water District’s participation and funding increase for the COMB CIP Second Barrel Project with the removal of Carpinteria Valley Water District’s (CVWD) participation in the Second Barrel Project by CVWD Board action of November 4, 2009 subject to:

a. Participation and increased funding approval by the City of Santa Barbara (CSB) and the Goleta Water District (GWD) for the Second Barrel Project.

b. Reimbursement to MWD for its proportionate higher percentage of the Proposition 50 grant money received by COMB with the removal of CVWD from project participation.

c. Such MWD funding increase will not increase MWD’s overall previously approved COMB CIP self-funding commitment as stipulated in the MWD Contribution Agreement.

d. CVWD agreement to waive their right to receive deliveries from the South Coast Conduit during periods when the first barrel is out of service.

2. Participation in the other selected COMB CIP priority projects may be considered on a project-by-project basis and conditioned on MWD’s previously approved funding commitment and the participation of CSB, GWD and CVWD.

3. Revise MWD’s Contribution and Indemnification Agreements to provide funding for the COMB CIP Second Barrel Project only, subject to the assurance of the receipt of the Prop 50 grant by COMB and reimbursement to MWD of its share in accordance with MWD’s proportionate percentage paid for the Second Barrel Project.

The motion was seconded by Director Wilson and carried by the following roll-call vote:

AYES: Morgan, Shaikewitz, Wilson

NOES: Abel

ABSENT: Frye

B. Purchase of portable ultrasonic flow meter for Production and Customer meter accuracy testing

Mr. Mosby introduced this item. It was moved by Director Morgan, seconded by Director Shaikewitz, and unanimously carried to approve the purchase of the Fuji Portaflow-C Portable Ultrasonic Flow Meter and the EES TG11 Ultrasonic Thickness Gauge and appropriate $6,300 from the Operating Reserves in addition to the approved budget amount of $2,200 for the purchases.

C. UNACCOUNTED WATER AND ACTION SUMMARY STATUS REPORT

Mr. Mosby presented this report to the Board and answered Directors’ questions.

D. Water Works Operations REport

Mr. Mosby presented this report to the Board and answered Directors’ questions.

10. GENERAL MANAGER’S REPORT

A. MWD Response to National Marine Fisheries SErvies Draft Steelhead Recovery Plan – Update

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 authorize the President of the Board to sign the letter in a form substantially like the draft presented in the agenda packet.

B. Monthly Operations Report (Oral)

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

11. DIRECTOR, COMMITTEE AND STAFF MEETING REPORTS

A. Central Coast Water Authority Meeting Of October 22, 2009

Mr. Mosby reported on the subject meeting.

B. SANTA BARBARA COUNTY SPECIAL DISTRICTS ASSOCIATION MEETING OF October 26, 2009

Director Wilson had no report on the subject meeting.

C. PUBLIC INFORMATION COMMITTEE

Director Abel reported on the District’s participation in Montecito Beautification Day

D. OPERATIONS COMMITTEE

President Shaikewitz reported that the activities of the Operations Committee had been covered elsewhere in the agenda.

E. FINANCE COMMITTEE

Director Morgan reported that the Finance Committee had discussed the report capabilities of Incode, suggested improvements to mitigate inefficiencies, and is working with Ms Bailey in the development of a ten-year guide. The Committee had a special meeting with Bond Counsel, Doug Brown to discuss refinancing and / or buying back the 98A bonds.

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

There were no requests from Directors for items other than regular agenda items for the next regular Board meeting scheduled for December 15, 2009.

13. ADJOURNMENT

There being no further business to come before the MWD Board of Directors, the meeting was adjourned at 5:34 p.m.

Approved:

_____________________________

Richard Shaikewitz, President

Attest:

__________________________________

Tom Mosby, Secretary