Attest:

Rosa Reagles, Assistant General Manager Stanley Rouhe,

Secretary to the Board of Directors President of the Board

Meeting December 20, 2005

1. CALL TO ORDER: The regular meeting was called to order by Vice President James Barrett in lieu of the
newly appointed President, Stanley Rouhe, @ 7:00 p.m.

Pledge of allegiance: James Barrett, Vice President led the pledge of allegiance to the flag.

3. ROLL CALL: Directors present: Shirley Palmer, Robert Butler, David Urbanoski & James Barrett.
Directors absent: Stanley Rouhe.

NOTE: Mr. James Barrett, announced that at the special called meeting on Friday, December 9, 2005, for
election of officers, Director Rouhe was elected President and Director Barrett was elected Vice
President. The president is absent tonight, so the vice president will assume his duties.
He announced that the board of directors have previously adopted the Robert’s Rules of Order as
the parliamentary procedure. He asked that members of the public to please assume the floor when
recognized by the chair on agenda items.

4. EXECUTIVE SESSION: N/A

5. PUBLIC APPEARANCES: N/A

6. PUBLIC COMMENTS:

a. Simone, Desert Shores resident. She announced that the district just celebrated its 55 year
anniversary and since its formation has not had constitutional bylaws or an administrative code, and
the district does not have the legal power to assess developers.
Ms. Simone distributed copies of bylaws that she had submitted to the previous board for
consideration and announced: www.ca.gov www.findlaw.com & www.merriamwebster.com

b. Ted Deckers, Salton Sea Beach resident, asked if the district would be interested in keeping the
aerators going and perhaps purchasing them at the cost of approximately $40,000.00 each.
The one-year contract for the solar bees aerators on the sea will be up in April and the Salton Sea
Authority does not have the money to renew it.

7. CONSENT CALENDAR:

Approval of the minutes for the regular meeting of November 15, 2005.

Approval of the minutes of the safety meeting of December 15, 2005

Best, Best & Krieger’s invoice in the amount of $ 1,101.20 for the month of November 2005.

Current demands for the month of November 2005.

Accept and file resolution of LAFCO of the county of Imperial making determinations and accepting the current level of services for Salton Community Services District.
A motion was made by Director Shirley Palmer and seconded by Director Robert Butler to accept the consent calendar as presented. Motion Carried 4 - 0

8. STAFF REPORTS:
a. Finance Officer’s report – Ms. Janice Thompson, read the report; a copy is posted on the bulletin
board.

General Manager’s – Mr. Thomas R. Cannell, General Manager read the report.

Fire Department’s – Ms. Rosa Reagles, read the report. She explained that open burning of green vegetation is allowed with a permit; residents must register with the district office and the Air Quality Control Board the state agency in which advises of the time and day that burning is permitted.

9. MEMBERS OF THE BOARD/ORGANIZATIONS REPORTS:
a. Golf Course – Ms. Eleanor Roy, President, reported that the course is looking great. In memory of Don
Stobie a tournament is scheduled for December and then in February the annual membership tournament
with election for board members. 37 kids participated in the school sponsored golf tournament. Ms. Roy
asked that in the future, the $6.00 entry fee for the children playing in school sponsored tournaments be
lowered to $3.00. Director Shirley Palmer volunteered to donate the money.

b. Architectural Committee: No report, regular meeting was cancelled due to a lack of a quorum.

10. OLD BUSINESS: N/A
a. Authorizations to raise developer fee an additional $5,000.00. At the request of Director Palmer this
item was dropped from the agenda.

11. NEW BUSINESS:

a. Authorization to sewer Tracts 579 & 581.
General manager requested permission to go out to bid on tracts 579 & 581. Herby Construction is
currently installing power poles and development should begin in February.
A motion was made by Director Shirley Palmer, and seconded by Director Robert Butler authorizing the
sewering of Tract 579 & 581 for purpose of discussion. Motion Carried 4 - 0

Authorization to contract sewer extensions that are less then $25,000.00; approximately six individual projects.
The general manager reported that Tract 576 is not sewered. There are eleven homes built awaiting for sewer service with an additional twenty, we are obligated to provide sewer service to these homes.
He asked to be able to award these projects to contracts without going out to bid, the individual projects do not exceed $25,000.00 the required amount by law to receive bids. These individual projects of sewer extensions consist of short runs of approximately 300’ to 1,000’.
A motion was made by Director Shirley Palmer and seconded by Director Robert Butler authorizing to contract sewer extension that are less then $25,000.00 approximately six, for discussion.
Motion Carried 4 – 0

Authorization to lease a new copy machine instead of purchase. Rosa Reagles, Assistant General Manager reported that it is now industry practice to lease a copier instead of purchasing. The monthly lease cost is $121.90, which includes all maintenance costs and parts. It the long run, leasing will be a big saving to the district.
A motion was made by Director Shirley Palmer and seconded by Director Robert Butler authorizing the lease agreement with Xerox. Motion Carried 4 - 0

Authorize possible change order for Tract 750.
General manager reported that a change order was requested by Zondiros Corporation for $158,000.00 for added cost to the project such as: pipeline 12,000’ @ $10.00/foot & $29,000.00 and to manholes: 5’ @200/vertical foot or $1,000.00, 29 manholes @1,000.00/manhole. Their bid was $398,000.00. and with the additional amount requested their bid still remains $25,000.00 lower than the others.

While walking the project with their surveyors no apparent problems were anticipated. There are areas there, because of the slop of the ground having a small tilt, where, if they stay at 6’ depth, the homes on the high side, will have no trouble dropping into the sewer line, but on the low side, if they come out over 30", they are going to go on the side of the sewer line or below it. So they have to drop down and that is why they’re asking for the increase.

Also, because of the school site being there, there is a need to change the direction of the line that comes from the school site and to make it an 8" line, instead of 6", because of the capacity that will come from the school, which will be 7 or 8 time the amount of one residence. He proposed to Zondires to make a change to the drawings, and to acquire an encroachment permit from the County of Imperial to be able to install a new 8" line that would service the school and would go directly through the calvasak, and the 6" line going around the calvasack would remain and services the homes. The cost of this change order would be approximately $45,000.00. Being that their bid was so much lower then the others, and the difficulty they had with the clay and depth, he suggested a $50,000.00 change order plus the $45,000.00 for rerouting the sewer line though the calvsack be approved.
He then read a notice that was included in the bid package that contractors must have walked the job site.
After much discussion, a motion was made by Director Shirley Palmer and seconded by Director Robert Butler to deny Zondiros request of a change order in the amount of $158,000.00. Motion Carried 4 - 0

Approve fire contract. At the request of Rosa Reagles this item was table until the January meeting, the office did not receive the new contract for year 2006 by the County Fire Department.

Authorize purchase of a 1996 used Chevy Suburban for the fire department $6,610.
Director Palmer reported that the district has not purchase a fire department vehicle since 1993 when
Ms. Mary Stinson was the Fire Chief. She spoke with the Mr. James Allen, Fire Chief about the vehicle, and he stated that this is a good vehicle fully equipped to serve as a commend post. We need to support the fire department, it needs all the help they can get.
Director Butler stated that he would approved the purchase with the condition that a written protocol of use of the vehicle is developed and approved by the board; such as where its going to be kept, who will be using it, and how they are driven.
Director Palmer suggested that this item be included on the study session that will be held in regard to the fire department policy.
A motion was made by Director Shirley Palmer and seconded by Director Robert Butler for purpose of discussion authorizing the purchase of the 1996 vehicle. Motion Carried 3 – 0 (Director Urbanoski was unavailable for the vote)

Authorization to dissolve the architectural committee.
President pro-tem James Barrett read into record the recommendation made by Director Robert Butler;
"The staff, under the direction of the general manager shall assume all the duties of Salton Community Services District CC&R’s enforcement and plan approval."
He then explained that the new district law coming in effect appears that with LAFCO’s approval three out of five directors can get rid of the oversight altogether. This motion takes the oversight out of the committee’s hand and puts it back where it originated, into the hands of the board, and the board has the authority to delegate the power to the general manager and the staff. Additionally, AB 135 gives the board, by legal ordinance, the power to attach fines to violations for of the services the district provides.
He then recommended that the board give the authority back to staff until we can figure out how we want to enforce the violations by ordinances.

Director Shirley Palmer on behalf of Mr. Norm Niver, Imperial County Planning Commission, read a
statement into record; same attached to this minutes and made part of.
She also stated that our CC&R’ enforcement policy was drafted by our attorney and approved by the
board.

General manager reported Senate Bill 35 states that we and other district’s have the power to enforce the
CC&R’s and have an architectural committee, it also adds that a violation of this bill is a misdemeanor,
dissolving the authority to enforce CC&R’s would be a disaster.

Director Robert Butler reported that he’s requesting to transfer the power of the architectural committee to
staff.

A motion was made by Director Robert Butler and seconded by Director James Barrett to approve item G
on the agenda. Motion Carried 3 – 1 (with Director Shirley Palmer voting no, stating that the board is
breaking the law)

Chair stated that a set of study sessions be scheduled to develop a more palpable architectural
committee. Meanwhile, staff will assume the duties of the architectural committee

Authorization to audit fire department purchases for the past 30 months
A motion was made by Director Robert Butler and seconded by Director James Barrett authorizing audit of the fire department purchases for the past thirty months. Motion Carried 4 - 0

i. Approve resolution 2005-12-1 entitled "a resolution of the Salton Community Services District directing the
general manager to request a determination from LAFCO regarding "latent" powers."
At the request of the Vice President this item was dropped from the agenda.
This item was approved under the consent calendar; "to accept and file LAFCO resolution, determination
and accepting the current level of services for the Salton Community Services District."

j. Approve resolution 2005-12-2 entitled "a resolution of the Salton Community Services District to create a
commission for the purpose of researching and developing a multi-purpose community recreational
complex in the communities of Desert Shores and Salton City.

k. Approve resolution 2005-12-3 entitled "a resolution of the Salton Community Services District supporting
levying upon all new residential development an assessment of $1,000.00 per home specifically designated
for the purpose of building a multi-purpose community recreational complex in the community of Desert
Shores and Salton City.
After much discussion the board agreed to table items J & K until the March agenda. Meanwhile and upon
the return of the newly elected President of the board schedule a study session to go over these
resolutions and the matters relating to the architectural committee.

12. ADJOURNMENT: There being no further business Mr. James Barrett, Vice President, adjourned the
meeting at 10:30 p.m.

Attest:

Rosa Reagles Stanley Allen Rouhe,

Assistant General Manager & President of the Board

Secretary to the Board of Directors