COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT

Board of Trustees’ Meeting

July 10, 2007

Call To Order:

President Fuschetti called the meeting to order at 6:00 p.m.

Pledge of Allegiance:

Trustee Lock led the Pledge of Allegiance.

Roll Call:

Those present at roll call: President Fuschetti, Secretary/Treasurer Duran, Trustees Baker, Howell, Laflin, Lock, Macknicki, and Underwood. Also present were General Manager Donald Gomsi, Assistant to the General Manager Diane Glanz, Administrative Services Manager Brian Passaro, Administrative Assistant Anita Jones, Scientific Operations Manager Branka Lothrop, PhD, Operations Manager James Saulnier, Finance Administrator David I’Anson, and Legal Counsel Lisa Copeland. Trustee Walker arrived at 6:35 p.m. Trustees Nigosian and Perkins were absent.

1. Confirmation of Agenda:

Trustee Lock motioned that Closed Session be moved back to its original position at the end of the meeting. The motion was seconded by Trustee Baker and failed with three (3) approved (Baker, Howell, and Lock), five (5) opposed (Duran, Fuschetti, Laflin, Macknicki, and Underwood), and three (3) absent (Nigosian, Perkins, and Walker). Trustee Duran made the motion to approve the agenda as is. The motion was seconded by Trustee Laflin and carried with seven approved (Duran, Fuschetti, Howell, Laflin, Lock, Macknicki, and Underwood), one opposed (Baker), and three (3) absent (Nigosian, Perkins, and Walker).

2. Minutes

A. Approval of Minutes for June 12, 2007 Board Meeting.

Trustee Baker stated that in the last paragraph of section 14 of the minutes that the vote to proceed with litigation was unanimous among those present. The Brown Act requires listing the persons present. Legal Counsel Copeland responded that the minutes could be corrected to reflect that Trustees Fuschetti, Duran, Howell, Laflin, Lock, Nigosian, and Underwood were in attendance at the meeting. Trustee Baker wanted it noted that he was excluded. Trustee Duran made the motion to approve the minutes as amended for the June 12, 2007 Board Meeting. The motion was seconded by Trustee Howell and carried unanimously.

3. Public Comment:

Public comment made by Desert Hot Springs resident Russell Betz.

4. Announcements:

General Manager Gomsi announced that mosquitoes positive for West Nile virus have been found in the Mecca area. Staff is actively searching for sources of those mosquitoes, treating, and taking measures to prevent future cases of West Nile virus.

5. Closed Session:

Trustee Baker stated that he appreciated the opportunity to speak. He was not sure what was going to be discussed but that he would not be surprised if an effort would be made to exclude him from the dais while the lawsuit is pending against the City of Desert Hot Springs. He stated he believes it would be illegal according to Government Code Section 1365. After consulting with several counsels and officers of the court, he believes that there is a very good chance the lawsuit, as written, could easily be determined to be frivolous and tossed out of court immediately. Since it is a civil lawsuit, it would probably take up to five years before adjudication. That means he could be denied the right to sit at the board table which would disenfranchise the people of Desert Hot Springs. Secondly, one of the things mentioned in the lawsuit are allegations of sexual harassment on his part. Trustee Baker went on to read a portion of a letter that was circulated to all board members in May of 2002. It was a letter that was sent to the complaining employee wherein legal counsel for the District stated, “I have concluded that although there was no conduct that rose to the level of actionable sexual harassment based on your claims, the conduct, etc. should not be tolerated.” Trustee Baker stated that therefore there was no conduct that met the level of actionable conduct. He has copies of the letter for anyone who wants to see it or have it. He continued saying that whatever is done in closed session, he hopes that it will not affect his presence on the dais and, if it does and he is removed, he hopes that those in support of him would walk out too so that there might not be a quorum and the meeting would be over. Trustee Lock requested a copy of the letter from Trustee Baker.

A. Closed Session conference with Legal Counsel pursuant to Government Code section 54956.9 (a) – Coachella Valley Mosquito & Vector Control District v. City of Desert Hot Springs – Pending in Riverside County Superior Court as Case No. INC 068335.

Returning from closed session Legal Counsel Copeland stated that there was no reportable action.

6. Correspondence:

As in board packet. Additional correspondence included the LAFCO report due to it not being copied in full in the board packet, a letter from Riverside LAFCO talking about the sphere of influence and the July meeting, a letter from the University of California, Riverside, from Dr. Greenburg in support of the Red Imported Fire Ant Program, and a letter from Rod Pachenko, District Attorney, regarding Brown Act training that could be provided to the Trustees.

7. Approval of Expenditures for June 13-30, 2007, and July 1-10, 2007:

Trustee Baker questioned the $28,000 for Mobile Infrared Systems for Aerial applications and asked if it was for applying pesticides or for aerial photographs for green pools? The response was that it was for aerial photographs. A discussion ensued. Trustee Baker asked if the $143,000 to VCJPA was for workers compensation. General Manager Gomsi responded that it was more than workers compensation. Trustee Baker mentioned that he has noticed quite a number of expenditures in the $10,000 range and above for office furniture. Lastly, this is the third meeting in a row in which he has not yet received the legal counsel statements that he requested. Trustee Duran made the motion to approve the expenditures for June 13-30, 2007 and July 1-10, 2007. The motion was seconded by Trustee Underwood and carried with eight (8) approved (Duran, Fuschetti, Howell, Laflin, Lock, Macknicki, Underwood, and Walker), one opposed (Baker), and two (2) absent (Nigosian and Perkins).

8. Committee Reports

A. Finance Committee:

Trustee Duran reported that the Finance Committee met and the minutes are in the board packet. Trustee Howell questioned why there was a 33% reduction in payroll between April and May. Finance Administrator I’Anson explained that there were three pay periods in April and only two in May. Trustee Baker questioned the large credit in Control Products. Finance Administrator I’Anson stated that it was an inventory adjustment. A discussion ensued. Trustee Baker commented that since the redevelopment pass thru estimate was exceeded by three quarters of a million dollars, has the last property tax disbursement been received. A discussion ensued.

B. Executive Committee: Trustee Fuschetti reported that the matter was discussed in Closed Session.

9. Report of District Activities:

A. Update on District Programs; progress and events since last Board meeting.

As in board packet. General Manager Gomsi added that the Red Imported Fire Ant program is doing a good job out in the community and thanked the crew. Trustee Baker stated that he received a call from someone in the Desert Hot Springs area complaining about a guest who was bitten twenty eight times by mosquitoes and that he referred them to the District. He questioned if somebody had contacted the district and if that was an indication that we need to increase surveillance in that area. A discussion ensued. Trustee Lock asked how the District was determining cost sharing for country clubs and how to get a list of which country clubs are to be treated. General Manager Gomsi responded that country clubs are contacting the District and requesting assistance; the cost is a 50/50 split. A discussion ensued. Trustee Walker asked how to handle calls received from members of their community who live in a gated community and are concerned about fire ant control. Are they to call the district or contact their H.O.A. General Manager Gomsi responded that it is usually best for them to contact the District directly. A discussion ensued.

10. Informational Items:

A. Malaria

B. Last quarterly research reports from University of California Riverside and Davis for FY 2006-2007.

1) Research on eye gnats and Tadpole Shrimp – Coachella Valley – Progress Report April-June 2007, Dr. Mir Mulla & Harold Axelrod

2) Evaluation of a Mosquitofish Stocking Program and A Comparison of Mosquito Production from Two Species of Emergent Vegetation at a Constructed Treatment Wetland: Progress Report June 2007 – William E. Walton, Ph.D. and David A. Popko, M.S., Department of Entomology, University of California, Riverside, CA

3) Quarterly Report, June 25, 2007, Dr. Les Greenberg, Fire Ant Research

4) Research in the Coachella Valley, Quarterly Report for April-June 2007 – William Reisen, PhD, Hugh Lothrop, Marc Kensington, Patrick Miller, University California at Davis

C. USA Today article: “Vacant pools leave neighbors swimming in mosquitoes”

As in Board Packet.

D. Presentation of video shown at the Mir Mulla Symposium

11. Consent Calendar:

A. Approval of vacation for General Manager July 13 – July 20; July 30 – August 3, 2007, and August 20-24, 2007. Assistant to the General Manager Glanz will be working to address any issues that may arise. – General Manager Gomsi

Trustee Duran made the motion to approve the consent calendar. The motion was seconded by Trustee Macknicki and carried unanimously.

12. Old Business:

A. Discussion and/or approval of District Strategic Planning Meeting. Potential cost for facilitator and room rental at a hotel not to exceed $10,000 from Fund # 6120.1.250, Trustee Support.

Trustee Underwood commented that the California Special District Association is offering a Special District Institute on Government Finance on the same dates of the proposed District Strategic Planning Meeting and recommended that a different date be chosen. Trustee Baker requested that the meeting be postponed until after the CSDA seminar on strategic planning. Trustee Laflin questioned the need to rent a room when the District’s board room could be used. A discussion ensued. Trustee Lock made the motion to approve pending the selection of dates. The motion was seconded by Trustee Howell and carried unanimously.

13. New Business:

A. Discussion and approval for District to change financial institution providing banking services.

Trustee Underwood recused himself.

Trustee Howell asked if the District had a financial advisor. General Manager Gomsi responded that the District did have one in the past but found that it did not serve the District well. A discussion ensued. Trustee Duran made the motion to approve. The motion was seconded by Trustee Baker and carried unanimously.

Trustee Underwood returned to the dais.

B. Discussion and/or approval to extend contract with Kiner Communication.

General Manager Gomsi reported that a short term contract had been made between the District and Kiner Communication; this would extend the contract. Kiner has been assisting with all of the recent press and media. A discussion ensued. Trustee Howell made the motion to give Kiner a thirty days notice, appoint a subcommittee to evaluate and determine what the District needs as far as public relations, and to report back to the Board next month. The motion was seconded by Trustee Baker and carried unanimously.

C. Discussion and/or approval to retain a municipal finance firm to provide independent analysis of the District’s finances.

Secretary/Treasurer Duran reported that the Finance Committee is recommending that the District engage the San Diego firm LECG to review the District’s financial procedures in order to provide independent expert analysis and strategic counseling services. A discussion ensued. Trustee Macknicki made the motion for the finance committee, with the help of staff, to develop an RFP that includes the scope of work to be performed. The motion was seconded by Trustee Baker and carried with eight (8) approved (Baker, Howell, Laflin, Lock, Macknicki, Underwood, Walker, and Fuschetti), one (1) opposed (Duran), and two (2) absent (Nigosian and Perkins).

D. Approval to renew insurance policy for non-owned commercial aircraft coverage with AvQuest not to exceed $10,125.00 from Fund #6000.1.225 – Property and Liability Insurance.

Trustee Baker asked if this was for the aircraft that takes aerial photos. Operations Manager Saulnier responded that this was for the aircraft that applies larvicide and adulticide. A discussion ensued. Trustee Underwood made the motion to approve. The motion was seconded by Trustee Lock and carried unanimously.

E. Approval of Resolution 2007-12 revising line item expenditures for the annual budget for fiscal year 2006/2007.

Trustee Baker asked if the new balance items listed were the anticipated amount that was going to be spent from April 30^th to the end of the fiscal year. Finance Administrator I’Anson responded that the amount was what was anticipated on that date. Trustee Duran made the motion to approve. The motion was seconded by Trustee Laflin and carried with seven (7) approved (Duran, Fuschetti, Howell, Laflin, Macknicki, Underwood, and Walker), two (2) opposed (Baker and Lock), and two (2) absent (Nigosian and Perkins).

F. Approval to go out to bid and purchase from the lowest responsible bidder control products in an amount not to exceed $1,526,000.00 from Fund 7800.01.500 – Control Products.

Trustee Lock made the motion to approve. The motion was seconded by Trustee Duran and carried unanimously.

G. Approval to go out for bid and purchase from the lowest responsible bidder the expansion of the District’s solar array to encompass the roof of the existing fleet parking structure.

Trustee Baker moved to have the item tabled until after strategic planning to see if a more all encompassing program should be done instead. Administrative Services Manager Passaro reported that the longer the District waits, the lower the rebate from the California Public Utilities Commission will. Trustee Baker withdrew his motion. A discussion ensued. Trustee Duran made the motion to approve. The motion was seconded by Trustee Underwood and carried unanimously.

H. Discussion and recommendation of action on the June 2007 Riverside Local Agency Formation Commission (LAFCO) “Draft Mosquito and Vector Control Services Special Study Report.”

General Manager Gomsi gave a brief history of the reason for the LAFCO study. A discussion ensued. Trustee Underwood made a motion to recommend that the District go back to its original position of the areas to be included in the sphere of influence that was previously submitted to LAFCO. The motion was seconded by Trustee Lock and carried unanimously.

I. Election of Officers for 2007-2008.

Trustee Laflin reported the recommendations of the nominating committee from the previous board meeting were: Trustee Duran for President, Trustee Fuschetti for Vice-President, and Trustee Underwood for Secretary Treasurer. Trustee Baker nominated Sharon Lock for Secretary/Treasurer. Trustee Lock nominated Gary Howell for Secretary/Treasurer. Trustee Lock and Trustee Howell declined their nomination. Trustee Baker stated that his concern was with Trustee Underwood’s statement last month that he knew nothing about budgeting. Trustee Underwood corrected him stating that what he said was budgeting was not his strong suit, but he did not say he knew nothing about it. Trustee Lock stated that she has a problem with the process. Trustee Howell asked who was on the Nominating Committee. A discussion ensued. Trustee Laflin made the motion to approve the slate of officers. The motion was seconded by Trustee Walker and carried with seven (7) approved (Duran, Fuschetti, Howell, Laflin, Macknicki, Underwood, and Walker), two (2) opposed (Baker and Lock), and two (2) absent (Nigosian and Perkins).

14. Trustee Comments:

Trustee Underwood commented that the City of Indian Wells has requested that the District ask the water district to look at one of the washes in Indian Wells that is green. The City of Indian Wells has called the water district to deal with the issue and they feel that if the District got involved, it would help. Trustee Howell commented that at the previous meeting it was stated that the Trustee Manual was going to be compiled and distributed at this meeting. General Manager Gomsi responded that due to the number of public records requests received, the Trustee’s Manual would have to be handed out at the next meeting. Trustee Baker commented that according to California Government Code Section 30-1369, the board members are required to be sworn in as appointed officials and a certificate of oath is to be kept on file at the District or none of the Trustees are legal board members. Trustee Duran thanked the Trustees for their vote of confidence and that they would work as a team. Trustee Duran also stated that he has an open door policy and asked that the Trustees please join his committees when asked. He stated that he wants to get the job done and to get it done correctly.

15. Adjournment:

Trustee Lock made the motion to adjourn. President Fuschetti adjourned the meeting at 8:58 p.m.