EAST VALLEY WATER DISTRICT November 28, 2006

REGULAR BOARD MEETING

MINUTES

The meeting was called to order at 2:02 p.m. by President Sturgeon. Gary Sturdivan led the flag salute.

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

ABSENT: None

STAFF: Robert Martin, General Manager; Brian Tompkins, Chief Financial Officer; Ron Buchwald, District Engineer; Justine Hendricksen, Administrative Manager; Eileen Bateman, Executive Assistant

LEGAL COUNSEL: Steve Kennedy

GUEST (S): Jo McAndrews (McAndrews & Boyd), Bob Memory (RAMS), Charles Roberts (Highland Community News), Gary Sturdivan,(EVWD), Leida Etherton (EVWD), Kathy Burke (EVWD)

APPROVAL OF AGENDA

M/S/C (Negrete-Wilson) that the November 28, 2006 Agenda be approved as submitted.

PUBLIC PARTICIPATION

President Sturgeon declared the public participation section of the meeting open at 2:04 p.m.

There being no verbal or written comments the public participation section was closed.

APPROVAL OF DEVELOPMENT AGREEMENT BETWEEN EAST VALLEY WATER DISTRICT AND NORTH AMERICAN RESIDENTIAL COMMUNITIES, INC. TO SUBDIVIDE AND DEVELOP CERTAIN REAL PROPERTY WHICH WILL CONSIST OF THIRTY-FIVE (35) DWELLING UNITS LOCATED AT PALM AVENUE AND 9TH STREET, IDENTIFIED AS TRACT 17668, IN THE CITY OF HIGHLAND, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, was presented to the Board for approval.

M/S/C (Wilson-Lightfoot) that the Development Agreement between East Valley Water District and North American Residential Communities, Inc be approved as submitted.

DISBURSEMENTS

M/S/C (Wilson-Lightfoot) that General Fund Disbursements #208363 through #208573 distributed during the period of November 10, 2006 through November 21, 2006 in the amount of $424,327.52 and Payroll Fund Disbursements for the period ended October 31, 2006 and November 10, 2006 and included checks and direct deposits in the amount of $5,157.89 and $136,935.68, totaling $566,421.09 be approved.

DISTRICT HEADQUARTERS REVIEW AND SITE UPDATE

The General Manager updated the Board on the Headquarters Project; that we are nearing the final approval in the plan check process; that the District is in contact with the San Manuel Tribe and Gary Miller with GMID to keep the project moving forward. Information only.

DISCUSSION AND POSSIBLE ACTION REGARDING AUDIT REPORT FOR FISCAL YEAR ENDING JUNE 30, 2006

A detailed presentation of the District’s Audit Report for Fiscal Year ended June 30, 2006 was given by Robert Memory of Rogers, Anderson, Malody & Scott

M/S/C (Lightfoot-Wilson) that the Audit Report for Fiscal Year ended June 30, 2006 be accepted

DISCUSSION AND POSSIBLE ACTION REGARDING THE IRS STANDARD MILEAGE REIMBURSEMENT RATES FOR 2006

M/S/C (Lightfoot-Negrete) that the IRS standard mileage reimbursement rates of 48 ½¢ for 2007 be accepted.

PUBLIC HEARING

PUBLIC HEARING TO CONSIDER ADOPTION OF A NEGATIVE DECLARATION FOR EAST VALLEY WATER DISTRICT’S NORTH FORK CHANNEL REPLACEMENT PROJECT

There being no additional written or verbal comments, PRESIDENT STURGEON DECLARED THE PUBLIC HEARING SECTION OF THE MEETING OPEN AT 2:24 P.M.

The General Manager introduced Gary Sturdivan.

Mr. Sturdivan provided the Board with a brief summary of the necessity for the North Fork Channel Replacement; that Tom Dodson & Associates have filed the CEQA Documents; that the District is on schedule for the final stages of the necessary steps required by the State OES and FEMA.

PRESIDENT STURGEON DECLARED THE PUBLIC HEARING SECTION OF THE MEETING CLOSED AT 2:26 P.M.

M/S/C (Wilson-Lightfoot) that the Board Adopt the Negative Declaration for East Valley Water District’s North Fork Channel Replacement Project, Adopt the Mitigated Negative Declaration; Adopt the Mitigation Monitoring and Reporting Program; and instruct staff to file the Notice of Determination with the County of San Bernardino clerk of the aboard of Supervisors and the State Office of Planning and Research, State Clearinghouse

GENERAL MANAGER / STAFF REPORTS

The General Manager reported on the District’s operations to date; that the District was notified of a Sewer Spill on Pumalo and Sterling Ave; that it was a sprinkler valve cover in the pipe that created the problem; that the site is in the process of being cleared; that the reports for the California Regional Water Quality Control Board are being prepared; that the District is contacting the County of San Bernardino for clarification on the procedure to change the election cycles.

Director Goodin inquired as to if the election cycle change would be in the District’s best interest at this time

The General Manager stated that changing the election year to coincide with the countywide election would help with election participation and election costs

Ron Buchwald stated that the Sterling Avenue Pipeline Project will be completed from Highland to Date Street by December 23, 2006 and barricades are now set north of Highland.

CONSULTANTS REPORTS

There were no Consultant Reports at this time

COMMITTEE REPORTS

There were no Committee Reports at this time

ORAL COMMENTS FROM BOARD OF DIRECTORS

Vice President Negrete stated that there was a Tribal Negotiations Committee Meeting on November 30, 2006.

Director Wilson stated that Rogers, Anderson, Malody & Scott and District Staff did an excellent job with the 2005-2006 Audit Report.

President Sturgeon stated that he would like to meet with each individual Board Member to discuss the upcoming year.

SAN BERNARDINO AREA CHAMBER OF COMMERCE “BUSINESS AFTER HOURS’, HOSTED BY SOUTHWEST COMMUNITY BANK, NOVEMBER 30, 2006

HABITAT FOR HUMANITY “A HOME FOR THE HOLIDAYS”, ESRI CAFÉ, DECEMBER 11, 2006

SPECIAL DISTRICT AND LOCAL GOVERNMENT INSTITUTE GOVERNANCE SEMINAR, THE STANDFORD COURT, SAN FRANCISCO, FEBRUARY 15-16, 2007

ADJOURN

The meeting was adjourned at 2:37 p.m. until the next regularly scheduled Board Meeting on December 12, 2006.

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Kip E. Sturgeon, President

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Robert E. Martin, Secretary