CONDUCT A PUBLIC HEARING FOR OBJECTIONS TO REMOVAL OF STARTHISTLE Mr. Yeakley stated a public hearing was scheduled at the last regular board meeting to allow property owners who objected to removing their yellow starthistle be heard. No members of the public were in attendance for the public hearing. President Kordes declared the public hearing closed.

DISCUSSION REGARDING 12kW PV SOLAR SYSTEM PROJECT Mr. Yeakley presented resident Bill Mason’s request that the Board discuss a solar system project during the regular board meeting. Mr. Stewart provided a history of the district’s look into solar projects. Director Northcutt asked is the project was still available to do. President Kordes answered yes, but that the previous Board Treasurer’s review of the project never penciled out for the district. President Kordes opened Public Comments. Bill Mason (3461-253) stated he comes from an engineering background and has a solar system on his home. Mr. Mason stated he listened to the vendor’s pitch and found errors in Mr. Martin’s spreadsheet, stating a solar system would be of substantial benefit to the district. Mr. Mason stated that waiting for a big project would be a mistake and that solar panels have come down in price saving the district even more money. President Kordes stated he appreciates Mr. Mason enthusiasm for the project and directed staff to place the item on the next Infrastructure Committee agenda. Mr. Yeakley apologized for not keeping Mr. Mason informed regarding the project.

COMMITTEE RECOMMENDATIONS FOR VOLUNTEER PARTICIPANTS Mr. Yeakley presented the committees’ recommendations for volunteer appointments to each committee. President Kordes appointed Sue Wonacott to the Communications Committee. President Kordes held the appointment of Debra Bush to the Administration Committee until the Committee had the opportunity to consider Ms. Bush’s request to hold the meetings in the evening. President Kordes appointed Phil Darling, Bill Mason and John Morgan to the Finance Committee. President Kordes appointed John Bryant to the Infrastructure Committee. President Kordes appointed John Bryant and Kenneth Wagner to the Public Safety Committee. The appointment of Elliot Oseas to the Infrastructure and Public Safety Committees was put on hold until it could be demonstrated that he was familiar with the Brown Act. President Kordes stated he was disappointed more members of the public had not asked to be considered for the committees. Director Northcutt stated at least it was a start. President Kordes opened Public Comments. Bill Mason (3641-253) stated he hoped the Board would consider other committee members as they volunteer. Mr. Yeakley stated that in addition to the above assignments, the Finance Committee desired board approval of an ad hoc citizen’s committee for the following purpose: “To evaluate all accounts and expenditures for the past year that appear on the monthly warrant report. If a contract is tied to a contract, evaluate that contract and offer suggestions for improvement. Should any reoccurring warrants be put out for bid: suggest ways that expenses can be reduced, eliminated or combined. The committee will function for a 60 day period to begin on approval of the committee members of the finance committee followed by board approval. At the end of the study, a written report will be submitted to the Finance Committee for presentation to the board.” Mr. Yeakley presented staff’s recommendation that the sixty day period not begin until at least July 1, 2009 to allow staff time to complete the budget process. Director Northcutt requested discussion regarding SB 135 and how it affects the district code. Pat Enright clarified the word citizen had not been defined in the district code and therefore the court’s definition of a citizen refers to a person’s permanent home. President Kordes stated that since the Finance Director was new to the district it would be in the district’s best interest to have the Ad Hoc Committee start their work in July, after the budget process. Director Zanutto stated the committee would only be working 2 hours per week sharing the files, and that there would always be something to create a delayed start date. Director Zanutto also stated the committee is anxious to get started. Vice President Romano pointed out the committee requires staff time and staff is requesting relief. Mr. Yeakley stated he did not believe the project could be accomplished in 1 to 2 hours per week and would be much more time consuming. John Mihelich (3557-174) stated it would be worthless to wait until July and the Brown Act was not necessary. President Kordes stated that anything helpful for this year’s budget would also be helpful for next year’s budget. Bill Mason stated 60 days seemed too short a time span to accomplish the purpose. Director Samuels stated that the district already had people handling the finances and that the purpose of the Ad Hoc Citizen’s Committee was a repetition of efforts, and therefore the committee was not necessary. Director Zanutto asked if the committee’s recommendations could be taken into consideration during the mid year review? Mr. Yeakley and Mr. Hernandez stated yes and that the recommendations would not have to wait until the midyear review. Director Zanutto made a motion to appoint Gil Grace, Bill Marquardt, John Mihelich and Steve Walsh to the Ad Hoc Citizen’s Committee. Director Northcutt seconded the motion. Vice President Romano stated the three members who attended the Brown Act training should be appointed, but the one that had not attended should remain pending to stay consistent with the other committee appointments. Bill Mason (3461-253) stated the attorney presented a handout during the training that could be provided to those that did not attend the meeting. Phil Darling (3431-024) told the board they needed to seriously consider appointing people that have publicly made comments that the Brown Act does not apply to them at this and past meetings. John Mihelich (3557-174) responded and stated the first three pages of the Brown Act make it clear it does not apply to a Citizen’s Ad Hoc Committee. Both President Kordes and Pat Enright stated once again that the Brown Act does apply. Pat Enright read section 5495.4 of the Brown Act. Phil Darling (3431-024) read several more portions of the Brown Act. Gil Grace (3430-450) stated people had volunteered and the rules had become discouraging. He also stated he attended Mr. Enright’s excellent training and understands the rules, but it makes it difficult to volunteer. Ralph Kermode (3417-177) stated there was too much animosity in the room. President Kordes closed Board and Public Comments and called for the vote. Ayes: Northcutt, Zanutto. Nayes: Kordes, Romano, Samuels. The motion failed.

APPROVAL OF REVISED BUDGET CALENDAR FOR FY 2009-10 Mr. Hernandez presented staff’s recommendation that the Board review and approve a revised Budget calendar. Vice President Romano made a motion to approve the revised budget calendar. Director Zanutto stated he was unavailable for the June dates. Following Board discussion the Budget workshop was moved to June 10, 2009 at 8 a.m. Director Zanutto seconded the motion. The motion passed unanimously.

APPROVAL OF INTERNAL CONTROL POLICY FOR LOCAL AGENCY INVESTMENT FUND (LAIF) TRANSACTION Mr. Hernandez presented staff’s recommendation that the Board approve the internal control policy for Local Agency Investment Fund (LAIF) transactions. Director Samuels made a motion to approve staff’s recommendation. The motion was seconded by Vice President Romano. There were no Public or Board Comments. The motion passed unanimously.

At 9:00 p.m. Vice President Romano made a motion to continue the meeting. Director Northcutt seconded the motion. The motion passed. Ayes: Kordes, Northcutt, Romano, Samuels. Nayes: Zanutto.

APPROVAL OF NEW PROCEDURES FOR PROCESSING ACCOUNTS PAYABLE AND MONTHLY CLAIM SUMMARY REPORT Mr. Hernandez presented staff’s recommendation that the board approve an alternative option for processing accounts payable with the implementation of the new plan to begin May 2009. Under the alternative option, staff would pay bills as incurred. Director Northcutt made a motion to approve the plan as presented by staff. Director Zanutto seconded the motion. There were no Board or Public Comments. The motion passed unanimously.

ADOPTION OF A RESOLUTION NOMINATING JOHN C. YEAKLEY TO THE BOARD OF DIRECTORS OF THE SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY (SDRMA) Mr. Yeakley presented staff’s recommendations that the board adopt a resolution nominating him for SDRMA’s Board of Directors. Mr. Yeakley reported he had served on the SDRMA Board since 1999 and would like to continue to do so. If elected Mr. Yeakley would be serving SDRMA for an addition four years at no cost to the district other than his time of approximately one day a month out of the office. President Kordes opened Board Comments and stated Mr. Yeakley’s involvement with SDRMA had been a positive factor for the CSD. There were no Public Comments. Director Samuels made a motion to pass the resolution. Vice President Romano seconded the motion. The motion passed unanimously. Vice President Romano wished Mr. Yeakley luck.

ENGINEER’S COST ESTIMATE FOR CUMMINGS VALLEY WELL #6 Mr. Stewart presented staff’s recommendation that the Board approve an additional $25,000 for engineering costs associated with Cummings Valley Well #6 and direct the engineer to go forward with the project. Mr. Stewart reported that $25,000 was already approved and Quad Knopf’s estimate was for a total of $49,300. Director Samuels made a motion to approve engineering cost up to $50,000. Vice President Romano seconded the motion. President Kordes opened Board Comments. Time was spent explaining the need for CV Well #6 and how it ties into the pipeline of CV Well #5. Time was also spent explaining the engineer’s role for this project. President Kordes closed Board Comments. There were no Public Comments. The motion passed unanimously.

STATUS REPORT REGARDING WELL #31 MAINTENANCE/REPAIRS Mr. Stewart provided a written report regarding Well #31 and will bring the item back at the next regular board meeting for a vote to approve maintenance and repair cost estimated at $30,000 plus or minus 20%. There was no action at this time.

STATUS REPORT REGARDING CUMMINGS VALLEY WELL ABANDONMENTS Mr. Stewart provided a written report regarding the abandonment of three agricultural wells in Cummings Valley. Director Northcutt asked for the details regarding how the district abandons a well. Mr. Stewart answered. No action. Report only.

STATUS REPORT REGARDING PARAMOUNT/JACARANDA ROAD SEALING Mr. Stewart provided a written report regarding seven miles of road surfacing on Paramount and Jacaranda planned for September of 2009. No action. Report only.

Public Works Status Report –Mr. Stewart provided a written report.

MTBE Status Report – Mr. Yeakley reported there have been no changes since last month’s report and suggested the item be removed from future agendas.

Financial Report – Mr. Rudy Hernandez presented a written report.

Finance Committee – Vice President Romano presented the written Finance Committee Minutes. The next meeting was set for May 11, 2009 at 11 a.m.

Infrastructure Committee – Vice President Romano presented the written Infrastructure Committee Minutes. The next meeting date was set for May 5, 2009 at 9 a.m.

Liaison Committee –President Kordes presented the written Liaison Committee Minutes. The next meeting was set for May 12, 2009 at 9 a.m.

Communications Committee – Director Zanutto presented the written Communications Committee Minutes. The next meeting was set for May 12, 2009 at 1:30 p.m.

Administration Committee – President Kordes presented the written Administration Committee Minutes. The next meeting was set for April 21, 2009 at 11 a.m.

Public Safety –President Kordes presented the written Public Safety Committee Minutes. The next meeting was set for April 21, 2009 at 9 a.m.

DFAC – Director Zanutto reported the committee is reviewing a list of approximately 33 priorities. The next meeting was set for May 12, 2009 at 10:30 a.m. at the OTCC.

Town Hall – Mr. Yeakley reported future meetings may be scheduled bimonthly or quarterly due to little public participation. Water and water availability was discussed at the April 14^th meeting.

TWAPC- Director Samuels presented the written Water Availability Preservation Committee Minutes for April 7, 2009. The next meeting was set for May 14, 2009 at 10 a.m.

ADOPTION OF A RESOLUTION IDENTIFYING PROPERTIES AFFECTED WITH STARTHISTLE Mr. Yeakley presented staff’s recommendation that the board adopt the resolution, direct staff to notify those with properties identified to be infested with Starthistle and set a public hearing to coincide with the next regular board meeting. President Kordes opened Board Comments. Director Northcutt asked how a property is removed from the list. Mr. Yeakley explained that the resident needs to call the office and staff will verify that the property can be removed. President Kordes explained the seeds can lay in the ground dormat for up to seven years. Gary Jones stated he would like his property removed from the list. Vice President Romano made a motion to adopt the resolution with the attached property list and to set a public hearing for the next regular board meeting. Director Samuels seconded the motion. The motion passed unanimously.

CONSIDER CHANGING RBM APRIL 9, 2009 Mrs. Janzen presented staff’s recommendation that the board consider changing the April 9, 2009 regular board meeting due to Passover. Director Samuels stated he would like to see the meeting changed to another date. Director Zanutto stated he will be out of town for Easter. Vice President Romano made a motion to move the regular board meeting to April 16, 2009 at 6 p.m. Director Northcutt seconded the motion. The motion passed unanimously.

CONSIDER IMPLEMENTATION OF COST SAVINGS EMPLOYEE INCENTIVE PROGRAM Mr. Yeakley presented staff’s recommendation that the board direct staff to implement an employee incentive program as described in the staff report and direct staff to report to the board on a quarterly basis regarding the program. Director Zanutto made a motion to accept staff’s recommendation with the option to review the program in six months. Vice President Romano seconded the motion. President Kordes opened Board Comments. Director Samuels and Vice President Romano requested clarification regarding the award amounts. Staff and Director Zanutto provided clarification. President Kordes closed Board Comments and opened Public Comments. Dan Shobe (3461-330) suggested employees look at all aspects of the operation and that bonuses only be paid after the savings to the district have been demonstrated. Sandy Williams (3440-338) asked who the Administration Committee members were and was told Director Zanutto and President Kordes. President Kordes closed Public Comments. The motion passed unanimously.

APPROVAL OF PAYMENT FOR PROPERTY TAXES DUE FOR PROPERTIES PURCHASED IN 2005 Mr. Yeakley presented staff’s recommendation that the Board approve payment in the amount of $153,809.72 to cover the property taxes due to Kern County for the Cuevas and Duncan properties that were purchased in 2005 and annexed last year. Funding to cover this tax reserve will come from the water reserve fund which has an unencumbered cash balance of $1,019,598 as of January 2009. Mr. Yeakley explained the taxes were not paid when due because the land was being annexed and on our previous annexation the county had excused such tax bills. Given the economic times the county was not willing to excuse the current tax bill and had applied approximately $20,000 in penalties. The annexation took longer than expected largely due to a personnel matter that has since been resolved. President Kordes opened Board Comments. Director Northcutt reviewed the annexation process and asked if there was any income from the leased property to offset the liability. Mr. Yeakley stated that yes the land is leased for a small amount of money; he would provide the exact amount of the lease at a later date. Director Zanutto asked for clarification as to why the property was purchased and asked if there were any wells on the property. Staff clarified the reasons for the purchase was to protect the cone of depression for district water. Director Samuels asked if the district could appeal to the county to reduce the 18% interest they offered in allowing the district five years to pay the bill. Mr. Yeakley stated the district has the money and recommended we pay the debt now. Mr. Yeakley also stated the county made it clear interest and penalties would increase if the taxes were not paid by April 1, 2009. President Kordes closed Board Comments and opened Public Comments. John Mihelich stated he had looked up the tax obligation on Kern Data and received different numbers. Mr. Mihelich stated this should have been a Finance Committee highlight. Gil Grace (3430-450) asked if anyone had stayed in touch with the county during the annexation process. Mr. Yeakley stated the county was aware of the situation and decided not to excuse the bill. Sandy Williams suggested the district issue two checks: one for the taxes owed and one for the penalties in case the county decided to excuse the penalties. Mr. Yeakley stated the county has made it clear they want the full amount. Phil Darling (3431-024) pointed out that the reserve money has been in an interest bearing account to help offset the penalties. Vice President Romano made a motion to pay $153,809.72 to cover property taxes due Kern County by April 1, 2009. Director Zanutto seconded the motion. The motion passed unanimously.

REVIEW AND DISCUSSION OF CURRENT WATER RATE BILLING STRUCTURE Mr. Yeakley presented staff’s recommendation that the Board discuss the Finance Committee’s recommendations and provide staff with direction. The directors discussed confusion over the pass-through charge and discussed proposition 218. Following some discussion Vice President Romano made a motion that staff conduct a study of the rate structure. The motion was seconded by Director Zanutto. President Kordes opened Public Comments. John Mihelich discussed proposition 218. Gil Grace asked if the price of natural gas was expected to increase or decrease and if anyone knew how much money was in a segregated account from the pass through charge. Vice President Romano stated natural gas had decreased and Mr. Yeakley stated he would call Mr. Grace with the amount that had been collected. President Kordes closed Public Comments. The motion passed unanimously.

APPROVAL OF LOCAL AGENCY INVESTMENT FUND (LAIF) AUTHORIZED SIGNORS TO PERFORM INVESTMENT TRANSACTIONS Mr. Yeakley presented staff’s recommendation that the board approve a resolution provided by the Local Agency Investment Fund authorizing General Manager John C. Yeakley, Assistant General Manager Sandy Janzen, and Finance Director Rudy Hernandez (or their successors in office) to authorize deposit or withdrawal of monies in the Local Agency Investment Fund on behalf of the district. Vice President Romano made a motion to approve the resolution. Director Northcutt seconded the motion. President Kordes opened Board Comments. Director Northcutt asked what combination of signors was necessary for the transaction to work. Mr. Yeakley clarified only one signor was needed. Mr. Yeakley was directed to write up an internal control policy requiring two signors to approve each transaction. President Kordes closed Board Comments. There were no Public Comments. The motion passed unanimously.

LETTERS OF INTEREST TO SERVE AS COMMITTEE VOLUNTEERS Mr. Yeakley presented staff’s recommendations that the board direct the individual committees to provide their recommendations for citizen members to the board president prior to the April 16, 2009 regular board meeting. Following discussion, staff was directed to provide a memo to each committee with a list of the applicants, to contact each applicant regarding the next committee meeting and place volunteer interviews on each committee agenda.

SECOND READING AND ADOPTION OF AN ORDINANCE AMENDING SECTION 1-5-9.E OF THE BEAR VALLEY COMMUNITY SERVICES DISTRICT MUNICIPAL CODE CONCERNING CITIZENS’ COMMITTEES Mr. Yeakley presented staff’s recommendation that the board conduct the second reading of the ordinance, adopt the ordinance, and direct staff to proceed with publication of the required public notice. Mr. Yeakley read the ordinance by title only. Director Northcutt made a motion to adopt the ordinance. Vice President Romano seconded the motion. There were no Board Comments or Public Comments. The motion passed. Ayes: Kordes, Romano, Northcutt, Zanutto Noes: Samuels

Public Works Status Report –Mr. Yeakley presented Clint Stewart’s written report. Director Zanutto stated his appreciation for the information provided on the new reports.

MTBE Status Report – Mr. Yeakley reported there have been no changes since last month’s report.

Financial Report – Mr. Yeakley presented Rudy Hernandez’ written report.

Finance Committee – Vice President Romano presented the written Finance Committee Minutes. The next meeting was set for March 19, 2009 at 10 a.m.

Infrastructure Committee – Vice President Romano presented the written Infrastructure Committee Minutes. The next meeting date was set for March 19, 2009 at 9 a.m.

Liaison Committee –President Kordes presented the written Liaison Committee Minutes. The next meeting was set for March 17, 2009 at 9 a.m.

Communications Committee – Director Zanutto presented the written Communications Committee Minutes. The next meeting was set for April 7, 2009 at 1:30 p.m.

Administration Committee – President Kordes presented the written Administration Committee Minutes. The next meeting was set for March 17, 2009 at 1:30 p.m.

Public Safety –President Kordes presented the written Public Safety Committee Minutes. The next meeting was set for March 19, 2009 at 11:00 a.m.

DFAC – Vice President Romano and Director Zanutto reported committee guidelines were reviewed and designated leaders in each area were determined. The next meeting was set for April 14, 2009 at 10 a.m. at the OTCC.

Town Hall – President Kordes and Vice President Romano reported the DFAC meeting was the main focus of the Town Hall. The next meeting was set for April 14, 2009 at 6:30 p.m. at the OTCC.

TWAPC- Director Samuels presented the written Water Availability Preservation Committee Minutes for March 12, 2009. The next meeting was set for April 14, 2009 at 10 a.m.

John Mihelich (3557-174) District Expenditures: Mr. Mihelich mentioned the passing of Carly Morton and stated her ideas, thoughts and motivations were for the good of the valley. Her favorite subjects as stated by Mr. Mihelich were legal and engineering costs, gasoline and medicine cabinet expenditures. Mr. Mihelich also clarified his statements as printed in the Cub regarding total district expenditures in view of pending tax shortfalls and requested clarification on taxes and annexed land in Cummings Valley. Mr. Mihelich stated only the general manager should have a district credit card. President Kordes closed Public Comments.

President Kordes opened Board Comments. Director Northcutt stated there were warrants for Mr. Yeakley’s car of $45,110 and $775 for radio and telephone work. Director Northcutt asked about the trade-in value of the old car and why the old phone/radio was not used. Mr, Yeakley reported the old car is waiting for maintenance work and will then need to be smogged before resale. The phone/radio was moved from the old vehicle and used in the new vehicle. Director Zanutto thanked staff for coordinating with the Golden Hills CSD to find Ethics Training for both Directors Northcutt and Zanutto at no cost to the district. Director Northcutt stated he would like to receive the board packets in a more timely fashion in order to allow more time to thoroughly review the material. Director Zanutto agreed. Staff also agreed. President Kordes closed Board Comments.

APPROVAL OF ATTENDANCE AT CSDA SPECIAL DISTRICT LEADERSHIP ACADEMY AND RELATED EXPENSES Sandy Janzen presented staff’s recommendation that the board approve attendance and related expenses of all four modules of the Leadership Academy for both Directors Northcutt and Zanutto. President Kordes opened Board Comments. Director Northcutt voiced concern that the district has been spending a great deal of money to send multiple directors to the same training. President Kordes stated the training changes quickly and it is important to stay up to date with the legislature. Staff shared in the report that there are some cost savings experienced in the district’s liability insurance by sending directors to training. Director Northcutt made a motion to send two directors to all four modules of the Leadership Academy and cover related expenses. Director Zanutto seconded the motion. The motion passed unanimously.

APPROVAL OF ATTENDANCE AT SPRING ACWA CONFERENCE AND RELATED EXPENSES Mr. Yeakley recommended that the board approve attendance of all five board members at the 2009 ACWA Spring Conference in Sacramento May 19 through May 22, 2009. Director Northcutt stated he had reviewed the conference information and found there are similarities to prior conferences and asked if it is necessary to send all five directors to these conferences repeatedly or can the district send fewer directors who could share the information with the board. Mr. Yeakley stated that yes the board could decide to be less active. President Kordes stated the water situation is volatile. The district needs to be aware of what is going on at the state level. Director Northcutt stated that with proper reporting all could stay informed. Director Samuels stated that handouts are available in some classes to share with other directors, yet some seminars do not provide the handouts. Director Northcutt stated that each director could write at least a paragraph addressing the classes he attended and explain what others are doing. President Kordes closed Board Comments and opened Public Comments. Mr. Mihelich stated that the district needs to look into the financial trade off on the cost of sending directors to the conference verses the savings on the liability insurance. Mr. Yeakley pointed out any decrease in insurance premium is secondary to the training provided. President Kordes closed Public Comments. Vice President Romano made a motion to approve attendance of five directors at the spring ACWA conference and related expenses. Director Samuels seconded the motion. The motion passed. Ayes: Kordes, Romano, Samuels, Zanutto. Noes: Northcutt.

CONFERENCE EXPENSE REPORTING Sandy Janzen presented an informational report regarding conference expense reporting. Pat Enright added the expense report is designed to provide transparency. Mr. Yeakley stated the expense report minimally meets the requirements of AB 1234. Director Northcutt stated that while it may meet the requirements, the board needs to examine what should be done ethically. No action was taken.

ADOPTION OF A RESOLUTION DECLARING SAFETY EMPLOYEE RAYMOND COTTA DISABLED FOR THE PURPOSES OF THE PUBLIC EMPLOYEES’ RETIREMENT LAW SECTION 21156, GOVERNMENT CODE Sandy Janzen presented staff’s recommendation that the board adopt a resolution declaring safety employee Raymond Cotta disabled for the purposes of the Public Employees’ Retirement Law Section 21156, Government Code. Vice President Romano made a motion to adopt the resolution. Director Samuels seconded the motion. President Kordes opened Board Comments. Director Zanutto confirmed a physician had determined Sgt. Cotta permanent and stationary. Director Northcutt requested clarification on the benefit difference between a regular retirement and an industrial disability retirement. Staff clarified. President Kordes closed Board Comments. The motion passed unanimously.

MODIFICATION TO COMMITTEE STRUCTURE Mr. Yeakley presented staff’s understanding of the committee’s desires for modification and recommended that the board direct staff to begin immediate solicitation of potential members of the community to fill the proposed committee positions and present a list of names to the board no later than March 12, 2009. Staff was directed to complete said recommendations. President Kordes appointed Directors Romano and Zanutto to the Detachment Fund Advisory Committee (DFAC). Both directors agreed to attend the meetings at no cost to the district.

FIRST READING OF AN ORDINANCE AMENDING SECTION 1-5-9.E OF THE BEAR VALLEY COMMUNITY SERVICES DISTRICT MUNICIPAL CODE CONCERNING CITIZENS’ COMMITTEES Mr. Yeakley presented staff’s recommendation that the board conduct the first reading of the ordinance and direct staff to proceed with publication of the required public notices. Mr. Enright reviewed changes to the ordinance. Vice President Romano made a motion to read the ordinance by title only and directed staff to proceed with the required public notice. Director Zanutto seconded the motion. The motion passed unanimously.

DISCUSSION REGARDING DIRECTORS PARTICIPATION IN TOWN HALL MEETINGS Mr. Yeakley presented staff’s recommendations that the board decide whether or not they desire to seat representatives on the Town Hall Forum and; whether to name two directors to the forum or direct staff to develop a rotating schedule. President Kordes pointed out to add another committee would cost the district $2,400 annually. Director Northcutt suggested the directors rotate the responsibility on a volunteer basis. Vice President Romano suggested the Town Hall be merged with the Liaison Committee. Director Zanutto stated the Town Hall opens up another forum of communication. President Kordes opened Public Comments. Gary Johnson (3431-164) stated the public is simply asking for answers to questions at the Town Hall. Staff was directed to present a calendar to the board rotating director attendance at the Town Hall meetings, to be attended on a volunteer basis.

APPROVAL OF ADDITION OF CITIZEN MEMBERS TO THE COMMUNICATION COMMITTEE Director Zanutto presented the Communications Committee recommendation to have Mr. Neill D. Hicks and Mr. William F. Marquardt added to the committee. President Kordes appointed both gentlemen to the committee. Staff was directed to inform Mr. Hicks and Mr. Marquardt of their appointments.

VEHICLE POLICY ANALYSIS Mr. Yeakley presented cost summaries by the Superintendent of Public Works and the Chief of Police along with a report from the September 11, 2008 regular board meeting. The information was discussed. Director Northcutt stated he would like more time to digest the information. Vice President Romano requested information on a disabled officer. Director Zanutto calculated the cost of 125,000 miles driven outside of the valley. President Kordes mentioned some of the vehicles were part of the compensation package for the Chief of Police, Superintendent of Public Works and General Manager. Director Northcutt stated personal use of a vehicle is rarely included in a compensation package. President Kordes opened Public Comments. Mr. Mihelich stated the officers work 36 hour weeks meaning the vehicle is left sitting idle for 75% of the time. Staff clarified safety employees work a total of 80 hours in a two week period with some overtime as needed. Gil Grace (3430-450) referred to the portion of the CSD’s mission statement, “The district is committed to ensuring, in the most efficient an economical way, the high quality services that the residents of Bear Valley Springs enjoy and expect.” Mr. Grace stated the mission statement is on the CSD website. Mr. Johnson asked what is the district’s liability if an employee injures someone in a district car? President Kordes stated the opposite side of the issue is the liability of a district employee responding to a call in their personal vehicle. Mr. Enright stated the district needs to look at the restrictions set by the insurance company. Vice President Romano pointed out the time delay officers would have in responding to a call if they are not already in their own police cars. Chief Freeman reviewed the delay and risk to officer and citizen safety. Director Northcutt asked about mutual aid. Director Zanutto stated officers in Rosamond take home their cars, but pay for their fuel. No action was taken.

MID-YEAR BUDGET REVIEW AND ADOPTION OF RESOLUTION AMENDING FISCAL YEAR 2008-09 BUDGET Mr. Hernandez presented staff’s recommendation that the board adopt a resolution amending the fiscal year 2008-09 budget by $15,000 to cover violations with the California Regional Water Quality Control Board. President Kordes opened Board Comments. Director Northcutt asked for clarification on the violations. Mr. Yeakley stated these are the same violations he mentioned in the last board meeting. Mr. Yeakley had hoped the violations would be reduced from $24,000 to zero but the minimum fine per offense is $3,000. President Kordes closed Board Comments. Mr. Hernandez also referred to a 33% rate increase by Benz. President Kordes opened Public Comments. Ralph Kermode (3417-177) asked for clarification regarding Benz’ rate increase. Staff presented further details. President Kordes closed Public Comments. Director Zanutto made a motion to adopt the resolution. Vice President Romano seconded the motion. The motion passed unanimously.

Public Works Status Report –Clint Stewart reported that the public works crew has been busy with snow, ice and a couple of water leaks this month. Meter reading was difficult due to snow and ice causing many water bills to be estimated. The Public Works building was delivered. Vice President Romano mentioned he saw in the warrants money paid for a paving contract. Mr. Stewart reported the manure collection area was paved and would be ready for use once the weather cleared.

MTBE Status Report – Mr. Yeakley reported that the Chevron Station site was now closed. Bear Valley has successfully had both sites removed from the MTBE list. The Cummings Valley site is still of concern. The plume has not changed in size or shape.

Financial Report – Rudy Hernandez presented a written report.

Finance Committee – Vice President Romano presented the written Finance Committee Minutes. The next meeting was set for February 19, 2009 at 10 a.m.

Infrastructure Committee – Vice President Romano presented the written Infrastructure Committee Minutes. The next meeting date was set for February 19, 2009 at 9 a.m.

Liaison Committee –President Kordes presented the written Liaison Committee Minutes. The next meeting was set for February 17, 2009 at 9 a.m.

Communications Committee – Director Zanutto presented the written Communications Committee Minutes of January 20 and February 10, 2009. The next meeting was set for March 10, 2009 at 10 a.m.

Administration Committee – President Kordes presented the written Administration Committee Minutes. The next meeting was set for February 17, 2009 at 1:30 p.m.

Public Safety –President Kordes presented the written Public Safety Committee Minutes. The next meeting was set for February 17, 2009 at 11:00 a.m.

TWAPC- Director Samuels presented the Water Availability Preservation Committee Minutes for February 12, 2009. The next meeting was set for March 12, 2009 at 10 a.m.