APPROVED: JUNE 8, 2004

EAST VALLEY WATER DISTRICT May 25, 2004

REGULAR BOARD MEETING

MINUTES

The meeting was called to order at 2:00 p.m. by President Wilson. Director Lightfoot led the flag salute.

PRESENT: Directors Lightfoot, Negrete, Goodin, Sturgeon, Wilson

ABSENT: None

STAFF: Robert Martin, General Manager; Paul Dolter, District Engineer; Brian Tompkins, Chief Financial Officer; Mary Wallace, Administrative Assistant, Justine Hendricksen, Administrative Assistant.

LEGAL COUNSEL: Steve Kennedy

GUEST(s): Jo McAndrews, Gregory Shank (CTG Energetics), Bob Memory (RAMS), George Marquiz (GMID), Gary Miller (GMID).

APPROVAL OF AGENDA

M/S/C (Sturgeon-Goodin) that the May 25, 2004 Agenda be approved as submitted.

PUBLIC PARTICIPATION

President Wilson declared the public participation section of the meeting open at 2:02 p.m. and took this opportunity to talk about the format of the Financial Statements. There being no written or further verbal comments, the public participation section was closed.

APPROVAL OF MAY 11, 2004 BOARD MEETING MINUTES.

M/S/C (Negrete-Sturgeon) that the May 11, 2004 Board Meeting Minutes be approved as submitted.

FINANCIAL STATEMENTS FOR PERIOD ENDED APRIL 30, 2004 were presented to the Board for review.

M/S/C (Negrete-Sturgeon) that the Financial Statements for period ended April 30, 2004 be accepted.

APPROVAL OF LIENS FOR DELINQUENT WATER AND SEWER ACCOUNTS.

The General Manager stated that the charges identified by Account Number: 0200043-01 had been paid and should be removed from the lien list.

M/S/C (Negrete-Sturgeon) that the liens for delinquent water and sewer accounts be approved for processing with the exception as noted by the General Manager.

DISBURSEMENTS

M/S/C (Negrete-Sturgeon) that General Fund Disbursements #197281 through 197457 distributed during the period of May 6, 2004 through May 19, 2004 in the amount of $493,802.32 and Payroll Fund Disbursements for the period ended May 14, 2004 in the amount of $90,046.24 totaling $583,848.56 be approved.

RADON RULE/PERCHLORATE RULE UPDATE

The General Manager stated that there was nothing new to report on the Radon issue; that the Perchlorate Rule remained a main topic in the water industry and the governing regulation was pending. Information only.

PRE-AUDIT BRIEFING - DISCUSSION AND POSSIBLE ACTION REGARDING 2003/2004 FINANCIAL AUDIT.

A presentation of services to be provided by Rogers, Anderson, Malody & Scott (RAMS) was made by Mr. Bob Memory (CPA) along with a briefing of new laws; stated that there would be an assigned committee for the audit in accordance with Government Auditing Standards. Information only.

LEED COST ANALYSIS (PREPARED BY CTG ENERGETICS, INC.) FOR EAST VALLEY WATER DISTRICT.

A presentation of various LEED certification ratings and financial analyses was made by Gregory Shank (CTG Energetics).

M/S (Goodin-Sturgeon) that the District adopt the LEED Gold Option 2.

Director Negrete disagreed with the use of concrete versus black-top for the parking lot due to the increased cost.

Director Goodin stated that this appeared to be a “cost effective” program and that he saw no significant loss in lead time as stated by Mr. Shank in the report.

The General Manager stated that the design efforts were being delayed until a LEED decision was made.

The motion was defeated by a 3 – 2 vote:

Directors: Negrete, Lightfoot, Wilson voted NO.

Directors: Goodin, Sturgeon voted YES.

M/S/C ( Negrete-Sturgeon) that the District adopt the LEED Silver Option.

The motion carried by a unanimous vote with the option to change the rating in the future.

DIRECTOR LIGHTFOOT LEFT THE MEETING AT 3:45 P.M.

DISCUSSION AND POSSIBLE ACTION REGARDING A REQUEST FROM NEXTEL TO LEASE A PORTION OF DISTRICT’S PLANT #39 FOR THE DEVELOPMENT OF TELECOMMUNICATION FACILITIES.

Staff was directed to follow up on the preparation of an agreement with Nextel to cover the lease for the development of telecommunication facilities at District Plant #39. Information only.

DISCUSSION AND POSSIBLE ACTION REGARDING A REQUEST FOR DONATION FOR “LOMA LINDA RONALD MCDONALD HOUSE: 2004 GOLF TOURNAMENT EVENT SCHEDULED FOR JULY 9, 2004.

Staff was directed to furnish water for the golf tournament participants. Information only.

FUNDING AGREEMENT BETWEEN THE DEPARTMENT OF WATER RESOURCES AND EAST VALLEY WATER DISTRICT (ARROYO VERDE MUTUAL WATER DISTRICT) was presented to the Board for approval.

The General Manager recommended approval of this agreement.

M/S/C (Goodin-Negrete) that the funding Agreement between the Department of Water Resources and East Valley Water District be approved.

LETTER FROM CUSTOMER, ARREOLA PERRY, REQUESTING ASSISTANCE REGARDING A RECONNECTION FEE FOR A THIRD METER SERVICE AT THIS PROPERTY was presented to the Board for review and possible action.

M/S/C ( Sturgeon-Goodin) that staff’s recommendation to deny a waiver of the deposit on behalf of Arreola Perry be approved.

LETTER FROM CUSTOMER, OFELIA PETTENGILL, PROTESTING FEES ON A SERVICE ACCOUNT AT 7414 COLE AVENUE was presented to the Board for review and possible action.

M/S/C ( Negrete-Goodin) that staff’s recommendation to credit Ms. Pettengill’s account with $100.00 be approved.

RELEASES OF LIEN FOR DELINQUENT WATER AND SEWER ACCOUNTS.

List of liens released on May 10, 2004 was reviewed. Information only.

GENERAL MANAGER’S REPORT

The General Manager reported on the District’s operations to date; that EVWD had agreed to host a dinner for the ASBCSD on July 19, 2004; that the LAFCO Annexation Project would approve the transfer of jurisdiction of property located at the S.W.Corner of Third St. and Alabama Ave. from the City of San Bernardino Municipal Water Department to East Valley Water District to provide water services to the property; that a water line replacement project was in progress along 10th and 11th Street. Information only.

District Engineer, Paul Dolter, stated that he had hosted an academic tour at the District’s Treatment Plant for Dr. Mian’s class at Cal State University. Information only.

ORAL COMMENTS FROM BOARD OF DIRECTORS

Director Sturgeon stated that Tony Sedano had been awarded a seat on the LAFCO Board; that he felt that the LEED program deserved consideration and did not mean to impose a negative impression. Information only.

Director Negrete stated that he favored the LEED Silver rating program over the LEED Gold Option 2. Information only.

Director Goodin stated that he was in favor of the LEED Gold Option 2 but that he accepted the LEED Silver rating; that there had been a large Memorial Day Celebration (1st Annual) planned at Cal State University. Information only.

There being no further verbal or written comments from the Directors, this section of the meeting was closed.

ICWA 2nd ANNUAL 2004 LOMA LINDA RONALD MCDONALD HOUSE GOLF TOURNAMENT, EL RANCHO VERDE COUNTRY CLUB, RIALTO, CA., JULY 9, 2004. Information only.

ADJOURN

The meeting was adjourned at 4:25 p.m. until the next regularly scheduled Board Meeting on June 8, 2004.

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George E. Wilson, President

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Robert E. Martin, Secretary