Thursday, July 14, :30 a.m.

Transcription

1 JOINT MEETING MINUTES OF THE BOARD OF DIRECTORS OF THE RANCHO CALIFORNIA WATER DISTRICT AND BOARD OF DIRECTORS OF THE RANCHO CALIFORNIA WATER DISTRICT ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO (RANCON BUSINESS CENTER) INTRODUCTION Thursday, July 14, :30 a.m. A regular meeting of the Board of Directors of the Rancho California Water District and meeting of the Board of Directors of the Rancho California Water District acting as the legislative body of Community Facilities District No (Rancon Business Center) was held on Thursday, July 14, 2011, at the appointed meeting place of the Board, the Boardroom of the District's Administrative Headquarters Building, located at Winchester Road, Temecula, California. ROLL CALL President Libeu called the meeting to order at 8:30 a.m. A quorum was declared, with the following directors being present: Ben Drake John Hoagland William Plummer Lisa Herman Lawrence Libeu Roland Skumawitz Director Steve Corona was absent. Also present were members of the District staff and others including, but not limited to Jim Gilpin of Best Best & Krieger; Matt Stone, General Manager; Richard Williamson, Assistant General Manager; Perry Louck, Director of Planning; Craig Elitharp, Director of Operations and Maintenance; Andrew Webster, Chief Engineer; Fred Edgecomb, Water Reclamation Manager; Corey Wallace, Engineering Manager-Design; Warren Back, Engineering Manager-Planning; Pat O Neil, Human Resources Manager; Ken Cope, Construction Contracts Manager; Bill Barnes, Field Services Manager-Facilities; Tim Carlisle, Field Services Manager-Construction; Mike Calvert, Operations Project Manager; Heath McMahon, Principal Engineer; Dave Morrison, Safety/Risk Officer; Vicki Browder, Budget/Debt Administrator; Denise Todd, Administrative Services Supervisor; Bill Stephens, Senior Water Resources Planner; Denise Landstedt, Water Resources Planner; Justin Haessly, Conservation/Water Use Efficiency Analyst; Meggan Valencia, Public Information Officer; Janet Carter, Customer Service Supervisor; Ruth Matthews, Finance Administrator; Milin Ream, Administrative Assistant; Yolanda Vejar, Customer Service Representative II-Office; and Kelli Garcia, District Secretary. Present in the audience were Jacqueline Howells of Howells Government Relations, Robert Porr of Fieldman Rolapp & Associates, and Brian Forbath of Stradling Yocca Carlson & Rauth.

2 PLEDGE OF ALLEGIANCE Chief Engineer Andrew Webster led the Pledge of Allegiance to the Flag. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities, as required by Section 202 of the Americans with Disabilities Act of Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the District Secretary at (951) at least 48 hours before the meeting, if possible. ADDITIONS TO AGENDA Items may be added to the Agenda in accordance with Section (b)(2) of the Government Code (Brown Act), upon a determination by a two-thirds vote of the legislative body, or, if less than two-thirds of the members are present, a unanimous vote of those members present, that there is a need to take immediate action and that the need for action came to the attention of the District after the Agenda was posted. There were no additions to the agenda. APPROVAL OF AGENDA President Libeu entertained a motion to approve the Agenda of the regular meeting of the Board of Directors of the Rancho California Water District and the Board of Directors of the Rancho California Water District acting as the Legislative Body of Community Facilities District No (Rancon Business Center) of July 14, MOTION: Director Drake moved to approve the Agenda of the regular meeting of the Board of Directors of the Rancho California Water District and the Board of Directors of the Rancho California Water District acting as the Legislative Body of Community Facilities District No (Rancon Business Center) of July 14, Director Skumawitz seconded the motion, and it carried unanimously. PUBLIC COMMENT Any person may address the Board of Directors at this time upon any subject not identified on this Agenda but within the jurisdiction of the Rancho California Water District; however, any matter that requires action will be referred to staff for a report and action at a subsequent Committee or Board meeting. As to matters on the Agenda, an opportunity will be given to address the Board when the matter is considered. There were no public comments. July 14, Board of Directors

3 MEETING OF THE RANCHO CALIFORNIA WATER DISTRICT ITEM 1. CONSIDER APPROVAL OF MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING OF MAY 19, 2011 AND REGULAR MEETING OF JUNE 9, 2011 There being no additions or corrections to the minutes of the Board of Directors special meeting of May 19, 2011 and regular meeting of June 9, 2011, President Libeu entertained a motion from the Board. MOTION: Director Plummer moved to approve the meeting minutes as presented. Director Drake seconded the motion, and it carried unanimously. ITEM 2. CONSENT CALENDAR Consent Calendar items are expected to be routine and non-controversial, to be acted upon by the Board of Directors at one time without discussion. If any Board member, staff member, or interested person requests that an item be removed from the Consent Calendar, it shall be removed so that it may be acted upon separately. A. Consider Approval of Financial Statements, May 31, 2011 B. Consider Approval of Treasurer s Report and Certification of Cash Sufficiency, as of May 31, 2011 C. Consider Ratifying Register of Audited Demands for the Period May 26, 2011 through June 23, 2011 D. Consider Adoption of Resolutions Adding Delinquent Charges to the County of Riverside Secured Tax Roll for Collection Purposes in Fiscal Year Resolution Adding Unpaid Charges for Water and Other Services, Pursuant to Water Code Section 36726, to the Secured Property Tax Roll (Delinquent Accounts) Fund No Resolution Adding Unpaid Charges for Water and Other Services, Pursuant to Water Code Section 36726, to the Secured Property Tax Roll (Delinquent Accounts) Fund No E. Report on Tax Delinquencies for Reassessment District No. 32A and Adoption of the Appropriate Resolution 1. Resolution Ordering Judicial Foreclosure of Delinquent Assessment Installments Pursuant to the Refunding Act of 1984 for 1915 Improvement Act Bonds and Ordering that the Tax Collector be Credited with those Installments F. Consider Approval of Professional Engineering Services Agreement Amendment and Approval of Easement Quitclaim for the Madison Avenue 54- Inch Water Transmission Main Relocation (Project No. D1505) G. Consider Approval of Professional Engineering Services Agreement Amendment for Recycled Water Storage Pond No. 5 (Project No. D1567) There being no requests to remove an item from the Consent Calendar, President Libeu entertained a motion to approve the Consent Calendar, as presented. July 14, Board of Directors

4 MOTION: Director Plummer moved to approve the Consent Calendar, as presented. Director Skumawitz seconded the motion, and the resolutions are entitled: RESOLUTION NO RANCHO CALIFORNIA WATER DISTRICT, RIVERSIDE COUNTY, CALIFORNIA ADDING UNPAID CHARGES FOR WATER AND OTHER SERVICES, PURSUANT TO WATER CODE SECTION 36726, TO THE SECURED PROPERTY TAX ROLL (DELINQUENT ACCOUNTS) and RESOLUTION NO RANCHO CALIFORNIA WATER DISTRICT, RIVERSIDE COUNTY, CALIFORNIA ADDING UNPAID CHARGES FOR WATER AND OTHER SERVICES, PURSUANT TO WATER CODE SECTION 36726, TO THE SECURED PROPERTY TAX ROLL (DELINQUENT ACCOUNTS) and RESOLUTION NO RANCHO CALIFORNIA WATER DISTRICT OF RIVERSIDE COUNTY, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF REASSESSMENT DISTRICT NO. 32A OF RANCHO CALIFORNIA WATER DISTRICT ORDERING JUDICIAL FORECLOSURE OF DELINQUENT ASSESSMENT INSTALLMENTS PURSUANT TO THE REFUNDING ACT OF 1984 FOR 1915 IMPROVEMENT ACT BONDS AND ORDERING THAT THE TAX COLLECTOR BE CREDITED WITH THOSE INSTALLMENTS The motion was carried by the following vote: Aye: No: Absent: Abstain: Directors Drake, Herman, Hoagland, Libeu, Plummer, and Skumawitz Director Corona July 14, Board of Directors

5 ITEM 3. CONSIDER LETTER OF CREDIT REPLACEMENT FOR COMMUNITY FACILITIES DISTRICT NO (RANCON BUSINESS CENTER), AND ADOPTION OF THE APPROPRIATE RESOLUTION A. Resolution Authorizing the Execution and Delivery of a Reimbursement Agreement and Fee Letter for the Community Facilities District No (Rancon Business Center) of the Rancho California Water District Special Tax Refunding Bonds, Series 1998 and Approving Certain Other Actions in Connection Therewith Finance Administrator Ruth Matthews announced that Rancho California Water District (RCWD/District) staff, in conjunction with Fieldman Rolapp & Associates (FRA) the District s financial advisor, has been working to replace the expiring Letter of Credit (LOC) related to Community Facilities District No (CFD 89-5) (Rancon Business Center) Bonds. In 2008, the District obtained a LOC from KBC Bank to provide credit enhancement and liquidity for the CFD 89-5 Bonds. At this time Ms. Matthews introduced Robert Porr of FRA and Brian Forbath of Stradling Yocca Carlson & Rauth, who are present at today s meeting to provide the Board with a brief overview of the actions required (on behalf of the District and/or acting in its capacity as the Legislative Body of CFD 89-5) in order to proceed with the LOC replacement. Addressing the Board, Mr. Porr explained that with the current LOC expiring on September 16, 2011, the District, through FRA, contacted banks in the business of supplying LOCs to municipal entities and solicited indications of interest for providing liquidity for the CFD 89-5 Bonds. Two indications of interest were received by the District Wells Fargo Bank and KBC Bank. On May 3, 2011 the Finance and Audit Committee authorized staff to continue negotiations with Wells Fargo Bank for the replacement LOC for the CFD 89-5 Bonds. Mr. Porr reported that District staff and the finance team have been working with representatives of Wells Fargo Bank to reach agreement in connection with terms and conditions for the replacement LOC. Continuing, Mr. Forbath explained that two actions are requested from the Board today: 1) action by the Board of the RCWD, and 2) action by the Board of RCWD sitting as the legislative body of CFD Reviewing the order of events, he conveyed that the Board of the District will consider the first set of documents then convene to a meeting of CFD 89-5 of the RCWD to consider a second set of documents. Providing an overview of both resolutions, Mr. Forbath stated that the first action essentially approves four different documents that are necessary in order to carry out the LOC substitution. These documents include a Reimbursement Agreement and Fee Agreement with Wells Fargo Bank, a Bond Counsel Agreement, and a Reoffering Memorandum. Regarding the resolution presented under the authority of CFD 89-5, he expressed that the documents presented are similar and include a Reimbursement Agreement, Fee Agreement, Reoffering Memorandum, and Remarketing Purchase Agreement. July 14, Board of Directors

6 Concluding his presentation Mr. Forbath offered to answer any questions. Hearing none, President Libeu entertained a motion from the Board. MOTION: Director Hoagland moved to approve staff s recommendation and adopt the proposed documents to secure a replacement letter of credit and remarket the Community Facilities District No Bonds, and approval of related costs. Director Plummer seconded the motion, and the resolution is entitled: RESOLUTION NO RANCHO CALIFORNIA WATER DISTRICT, RIVERSIDE COUNTY, CALIFORNIA, AUTHORIZING THE EXECUTION AND DELIVERY OF A REIMBURSEMENT AGREEMENT AND FEE LETTER FOR THE COMMUNITY FACILITIES DISTRICT NO (RANCON BUSINESS CENTER) OF THE RANCHO CALIFORNIA WATER DISTRICT SPECIAL TAX REFUNDING BONDS, SERIES 1998 AND APPROVING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH The motion was carried by the following vote: Aye: No: Absent: Abstain: Directors Drake, Herman, Hoagland, Libeu, Plummer, and Skumawitz Director Corona CONVENE TO MEETING OF COMMUNITY FACILITIES DISTRICT NO (RANCON BUSINESS CENTER) OF THE RANCHO CALIFORNIA WATER DISTRICT ITEM 1. CONSIDER ADOPTION OF RESOLUTION AUTHORIZING CERTAIN ACTIONS IN CONNECTION WITH THE REOFFERING OF THE COMMUNITY FACILITIES DISTRICT NO (RANCON BUSINESS CENTER) A. Resolution Authorizing Execution and Delivery of a Remarketing Purchase Agreement and a Reimbursement Agreement and Fee Letter, and Approving a Preliminary and Final Reoffering Memorandum with Respect to the Reoffering of the Community Facilities District No (Rancon Business Center) of the Rancho California Water District Special Tax Refunding Bonds, Series 1998 and Authorizing Related Documents and Actions Finance Administrator Ruth Matthews announced that in conjunction with the documents presented in the previous item, this is the appropriate time for the Board of Directors to adopt the appropriate documents in order to secure a replacement letter of credit and remarket the Community Facilities District No Bonds, and approve related costs. July 14, Board of Directors

7 MOTION: Director Hoagland moved to approve staff s recommendation and adopt the proposed documents to secure a replacement letter of credit and remarket the Community Facilities District No Bonds, and approval of related costs. Director Skumawitz seconded the motion, and the resolution is entitled: RESOLUTION NO. CFD RANCHO CALIFORNIA WATER DISTRICT, RIVERSIDE COUNTY, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO (RANCON BUSINESS CENTER) OF THE RANCHO CALIFORNIA WATER DISTRICT AUTHORIZING EXECUTION AND DELIVERY OF A REMARKETING PURCHASE AGREEMENT AND A REIMBURSEMENT AGREEMENT AND FEE LETTER, AND APPROVING A PRELIMINARY AND FINAL REOFFERING MEMORANDUM WITH RESPECT TO THE REOFFERING OF THE COMMUNITY FACILITIES DISTRICT NO (RANCON BUSINESS CENTER) OF THE RANCHO CALIFORNIA WATER DISTRICT SPECIAL TAX REFUNDING BONDS, SERIES 1998 AND AUTHORIZING RELATED DOCUMENTS AND ACTIONS The motion was carried by the following vote: Aye: No: Absent: Abstain: Directors Drake, Herman, Hoagland, Libeu, Plummer, and Skumawitz Director Corona RECONVENE TO MEETING OF THE RANCHO CALIFORNIA WATER DISTRICT Prior to Agenda Item No. 4 discussion, Director Drake recused himself from the meeting due to a conflict of interest Director Hoagland also left the meeting at this time. ITEM 4. REVIEW METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA S TERMINATION OF INTERIM AGRICULTURAL WATER PROGRAM (IAWP) REDUCTION FOR CALENDAR YEAR 2011, AND CONSIDER ADOPTION OF THE APPROPRIATE RESOLUTION A. Resolution Modifying the Agricultural Demand Reduction Plan Prepared in Response to Metropolitan Water District of Southern California s Request for Mandatory Agricultural Reductions (Amending Resolution No ) Conservation/Water Use Efficiency Analyst Justin Haessly announced that in November 2007, Rancho California Water District (RCWD/District) Board of Directors approved Resolution , which adopted the Agricultural Demand Reduction Plan (Plan). The purpose of the Plan was to satisfy Metropolitan Water District of Southern California s (MWD) request for information regarding how RCWD would address MWD s call for a 30 percent reduction in discounted Interim Agricultural Water Program (IAWP) demand. The Plan was implemented on January 1, 2008, and more than three years later, RCWD received a letter from MWD conveying the agency s intent to terminate the 30 percent IAWP reduction July 14, Board of Directors

8 requirement. The details involving MWD s decision to terminate the reduction will require that the Plan be updated since there will be significant changes to the IAWP moving forward. Essentially, MWD s letter (issued May 5, 2011) summarizes the following: Removes the mandatory reduction of IAWP water for calendar year 2011, retroactive to January 1, 2011; Agencies can certify IAWP deliveries up to baseline levels; Rescinds monthly reduction targets; and Eliminates the penalty fee for IAWP overuse occurring during an IAWP reduction period; agricultural water exceeding an agencies maximum baseline allocation will be billed at the applicable Tier II full service rate. As a result, Mr. Haessly explained that staff is proposing RCWD make modifications to its Plan to reflect the changes issued by MWD as follows: Remove the mandatory reduction of water for IAWP participants for calendar year 2011; Provide all IAWP customers with non-reduced, annual baseline water allocations retroactive to January 1, 2011; Continue to bill all IAWP customers at the discounted rate for water consumption up to their annual baseline allocation for the remainder of the IAWP phase out period; Rescind monthly baseline allocation targets for IAWP customers; and Rescind the Ag Allocation Penalty rate for water consumption in excess of an annual IAWP baseline allocation. Instead, water consumption in excess of an annual baseline allocation would be billed based on the applicable Tier II Municipal & Industrial rate. Mr. Haessly announced the two major benefits that would be realized by RCWD customers through adoption of a resolution authorizing the updated Plan are: 1) an increased annual water allocation and 2) a decrease in the per-unit rate paid for water used in excess of the allocation. Highlighting a slide from a PowerPoint presentation, he explained that the following table displays the proposed allocation increases for two common local crop types: CROP DIVISION 2011 IAWP ANNUAL ALLOCATION % CHANGE Avocado Santa Rosa 3.40 AF/Acre 3.70 AF/Acre + 8.8% Winegrape Rancho 2.79 AF/Acre 2.98 AF/Acre + 6.8% MWD s decision to eliminate IAWP penalty fees would be passed on to RCWD s customers through the replacement of the current penalty rate for overuse close to $3.00 per billing unit in both Rancho and Santa Rosa Divisions in favor of the current Tier II rate. Displaying a second table for the Board s review, Mr. Haessly stated that the following schedule summarizes the new rates for overuse proposed in the Plan: July 14, Board of Directors

9 Pump Zone RANCHO DIVISION AG Rate ( ) 2 Overuse Rate 2 Pump Zone SANTA ROSA DIVISION AG Rate Overuse ( ) 2 Rate $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Following Mr. Haessly s presentation, brief discussion ensued between the Board and staff regarding RCWD s previous 50/50 plan and the approximate $26,000 in penalty fees that have been collected since January 1, Regarding the collected penalty fees, he stated that essentially, under the modified Plan, these fees would be issued back to the customers who have paid them, which is consistent with MWD not charging the District penalties during the same time period. MOTION: Director Skumawitz moved to adopt the resolution modifying Rancho California Water District s Agricultural Demand Reduction Plan. Director Plummer seconded the motion, and the resolution is entitled: RESOLUTION NO RANCHO CALIFORNIA WATER DISTRICT, RIVERSIDE COUNTY, CALIFORNIA, MODIFYING THE AGRICULTURAL DEMAND REDUCTION PLAN PREPARED IN RESPONSE TO METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA S REQUEST FOR MANDATORY AGRICULTURAL REDUCTIONS (AMENDING RESOLUTION NO ) The motion was carried by the following vote: Aye: No: Absent: Abstain: Directors Herman, Libeu, Plummer, and Skumawitz Directors Corona, Drake, and Hoagland Note: Directors Drake and Hoagland returned to the meeting at this time. July 14, Board of Directors

10 ITEM 5. CONSIDER APPROVAL FOR ADDITIONAL FUNDING, AWARD OF CONSTRUCTION CONTRACT, AND AWARD OF PROFESSIONAL SERVICES AGREEMENTS FOR THE ACE BOWEN PUMP STATION IMPROVEMENTS PUMP DRIVER REPLACEMENT, ONSITE FUEL CELL POWER GENERATION, AND MISCELLANEOUS FACILITY IMPROVEMENTS (PROJECT NO. D1601); AND ADOPTION OF THE APPROPRIATE REIMBURSEMENT RESOLUTION A. Resolution Declaring Its Intention to Reimburse Itself from the Proceeds of a Tax-Exempt Financing for Certain Expenditures to be Made in Connection with the Ace Bowen Pump Station Improvements Pump Driver Replacement, Onsite Fuel Cell Power Generation, and Miscellaneous Facility Improvements (Project No. D1601) Chief Engineer Andrew Webster announced that this item was initially presented to the Engineering and Operations Committee (Committee) on June 30, 2011, whereby the Committee forwarded the item to the Board of Directors without a recommendation. Moreover, during Committee discussion, additional information regarding the Ace Bowen Pump Station Improvements Project (Project) was requested, which Mr. Webster responded by providing the Board with a PowerPoint presentation that reviewed the following: Subject Project consists of four pump stations on one site, serving two different pressure zones. Project Benefits - purpose of this Project is to eliminate the existing internal combustion engine pump drivers at the site, replacing them with fuel cell powered electric motors. This will meet the District s need for having a redundant power source at the site for controlling the cost of pumping, as well as operational backup should there be a power failure. Additional Project funding request of approximately $4.5 million consists of activities including construction (professional services for design and construction), construction contingency, and labor. Project cost breakdown separating the fuel cell project cost from the site improvement/facility replacement project cost. The site improvement/facility replacement project cost is approximately $2.1 million of the total Project cost of $14.75 million. The Project budget cost increase associated with the fuel cell project, in comparison with the original Project cost estimate, is approximately $2.4 million. Revised economic analysis - in comparison with the electric-power-only alternative, the fuel cell project alternative is still the most economically viable project with a 20-year net present value savings of approximately $1.5 - $2.6 million. Provided additional information regarding the Southern California Edison electrical service improvements cost from the preliminary design phase to the final design phase. July 14, Board of Directors

11 Following review, Mr. Webster announced that staff recommends the Board continue with the modifications at the subject Project. Additionally, he apologized for not keeping the Board apprised on the cost adjustments and expressed that moving forward with future bidding projects, should staff foresee a major shortfall in the estimated job costs, an appropriate update will be provided to the Committee and/or Board as an informational item. At this time Director Hoagland thanked staff for providing the additional information requested for the Project modifications and concurred with staff s recommendation to complete the additional necessary projects at the site at one time. MOTION: Director Hoagland moved to approve the request for additional funding in the amount of $4,490,000, increasing the approved project budget from $10,260,000 to $14,750,000; award a construction contract to WM Lyles, Inc. in the amount of $5,547,401; award professional services agreements with: 1) Carollo Engineers for office and field engineering support during construction in an amount not-to-exceed $500,000, and 2) Enterprise Automation for instrumentation/control systems integration and programming in an amount not-to-exceed $140,000; and adopt the appropriate reimbursement resolution. Director Herman seconded the motion, and the resolution is entitled: RESOLUTION NO RANCHO CALIFORNIA WATER DISTRICT, RIVERSIDE COUNTY, CALIFORNIA, DECLARING ITS INTENTION TO REIMBURSE ITSELF FROM THE PROCEEDS OF A TAX- EXEMPT FINANCING FOR CERTAIN EXPENDITURES TO BE MADE IN CONNECTION WITH THE ACE BOWEN PUMP STATION IMPROVEMENTS - PUMP DRIVER REPLACEMENT, ON-SITE FUEL CELL POWER GENERATION, AND MISCELLANEOUS FACILITY IMPROVEMENTS (PROJECT NO. D1601) The motion was carried by the following vote: Aye: No: Absent: Abstain: ITEM 6. Directors Drake, Herman, Hoagland, Libeu, Plummer, and Skumawitz Director Corona INFORMATION ITEMS This item is intended for information only, however, at the discretion of the Board, may be discussed. A. Activity Report, Committees of the Board for the Month of June 2011 B. Claims Activity Report for the Period Friday, June 3, 2011 Through Thursday, July 7, 2011 C. Information Items There was no discussion concerning the information items. July 14, Board of Directors

12 ITEM 7. GENERAL COUNSEL'S REPORT General Counsel Jim Gilpin reported on an informational item pertaining to a report issued on July 11, 2011 by the California Forward, regarding recommendations for running a more efficient government. Additionally, Mr. Gilpin indicated that he will forward the Board of Directors the subject report via electronic mail. ITEM 8. GENERAL MANAGER S REPORT General Manager Matt Stone briefly discussed a vacancy on the Local Agency Formation Commission (better known as LAFCO) for a Special Districts Chair on the eastern side of Riverside County. Mr. Stone announced that a meeting will take place September 8, 2011 to hold an election to fill the subject position. Moreover, he explained that Rancho California Water District (RCWD/District) will have a resolution prepared for the Board of Directors (Board) review and approval at the August meeting. With regard to the Temecula Valley Chamber of Commerce recent Economic Outlook meeting, Mr. Stone made reference to a PowerPoint presentation he distributed to the Board for their pleasure reading and consideration. Also, Mr. Stone briefly discussed having met with City of Temecula Council Member Maryann Edwards this week, whereby he learned that the City of Temecula appointed Bob Johnson to the City Manager position. Additionally, he stated that he had an opportunity to speak with Councilmember Edwards about some of the District s initiatives and areas where both agencies might work together. Additionally, he explained that staff invited Councilmember Edwards for a tour of the District s watershed, which will include Vail Lake and Valle de Los Caballos (commonly known as VDC). Concluding his update, Mr. Stone commented that while on vacation, he visited a small coastal town in Portland, Oregon which has an approximate population of 1,200 plus whatever seasonal visitation they have. While there, he searched the town and learned that they were having a water problem; their water infrastructure is in bad shape, and they have not been keeping up with leaks and are therefore paying a lot to address these concerns, as well as treating water that is leaking. He commented on how it is amazing that, for an area that receives quite a bit of rain, their water costs are more today, compared to those of the District s service area. ITEM 9. BOARD MEMBERS COMMENTS AND REPORTS Director Hoagland reported on having joined President Libeu in attending the Southern Coalition meeting last week. He expressed that there was an interesting discussion on Metropolitan Water District of Southern California (MWD) and the many concerns going on statewide. Additionally, Director Hoagland commented on the north/south state divide pertaining to the unemployment rate in Southern California being the highest compared to the rest of the state. President Libeu reported on having attended the Southern Coalition meeting along with Directors Hoagland and Drake, and Rancho California Water District s Chief Financial Officer/Treasurer Jeff Armstrong. He briefly discussed that MWD is trying its best to find storage for all the excess water currently available. July 14, Board of Directors

13 Discussion ensued between the Board and staff with regard to water availability and a recent article on available replenishment water availability. ITEM 10. CLOSED SESSION At any time during the regular session, the Board may adjourn to closed session to consider litigation, personnel matters, or to discuss with legal counsel matters within the attorney-client privilege. Discussion of litigation is within the attorney-client privilege and may be held in closed session. Authority: Government Code Section A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Per Government Code ) Concerning Acquisition of Real Property: Various Water Transfers Matt Stone, General Manager & Perry Louck, Director of Planning B. CONFERENCE WITH LEGAL COUNSEL PENDING LITIGATION (Per Government Code (a)) Tenaja Community Services District vs. Rancho California Water District, Case No. TEC C. CONFERENCE WITH LEGAL COUNSEL PENDING LITIGATION (Per Government Code (a)) United States vs. Fallbrook Public Utility District, Case No D. CONFERENCE WITH LEGAL COUNSEL PENDING LITIGATION (Per Government Code (a)) Ross A. Guy & Son General Engineering Contractor vs. Rancho California Water District, Case No. RIC E. CONFERENCE WITH LEGAL COUNSEL PENDING LITIGATION (Per Government Code (a)) Rancho California Water District vs. Dahlen, et al., Case No. RIC F. CONFERENCE WITH LEGAL COUNSEL PENDING LITIGATION (Per Government Code (a)) United States of America et al. vs. J-M Manufacturing Company, Inc. Case No. 5:06-CV GW G. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - Significant Exposure to Litigation (Per Government Code Section (b)) One (1) Potential Case At 9:24 a.m., President Libeu declared the meeting in closed session. Board members, legal counsel, and select staff members remained, all other individuals left the room. The Board reconvened in open session at 9:53 a.m. President Libeu announced that there were no reportable actions taken by the Board of Directors in closed session. ITEM 11. ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 9:53 a.m. Kelli E. Garcia, Secretary of the Board of Directors of the Rancho California Water District July 14, Board of Directors