M I N U T E S
SPECIAL MEETING
OF THE BOARD OF DIRECTORS
August 4, 2003
6:00 p.m. 

Attorney Jackson told the Board that the appointment tonight must be by a majority of the full Board, or three votes. Director Buescher asked if a 2-2 tie would require a runoff vote; Jackson replied that there is not much case law on the point, and the Board can use reasonable discretion in resolving a tie, as long as the final decision results from at least three votes in favor of one candidate.  

The candidate interviews were as follows: 

Fred M. Hayes: Owner of a 22-acre grove and residence in Zone V, Purchased land in 1986, built residence in 1991. Background in aviation, real estate and most recently farming. No previous experience in road maintenance or other functions of CSD; he is here to learn. Has been in property management since 1968, resident of California since 1966. Primary career was airline pilot, retired at mandatory age of 60 in 1997. Focused on real estate and farming since that time. Elected to Board of Santa Margarita Ranchos POA in 1993. Served as President for five years. In response to questions from the Board, he observed that damage to the roads from the RCWD reservoir construction was troubling. Along with Al Rattan and the SMRPOA Board, he opposed the construction of “The Villages” project in downtown Temecula, based upon its impact on traffic on Rancho California Road. He is interested in rejuvenating the West Side Council as a coordinated voice for all of the POA’s. He has no regular time commitments that would conflict with his duties as a CSD Director. He mentioned in his letter of interest that his appointment would add a Director from the East side to complement the majority of Directors who were from the central portion of District.  

Walter F. Kelly: Resident of the District for 13 years, lives on 5-acre avocado grove on Carancho Road. Retired painting contractor in Los Angeles and Orange counties. Previously served five years as director of Water District in the City of Walnut, in Los Angeles County. Biggest challenges were in collecting bills for water, repairing old system. Biggest accomplishment during his tenure was installation of a 20” main that improved pressure and volume. He likes the De Luz area as a unique place to live. He has no outside interests other than working in and maintaining his grove. The greatest challenge for the District will be in accommodating the growth that will be inevitable.  

Stephen P. Rubin: 45250 El Prado Road. In Transportation industry, moving general freight internationally. Currently serves as Vice President of De Luz Ranchos, third term. Very important for people who take roots in community to become involved in the community. Was involved in founding and incorporating the “Save Walker Basin” organization. Is not a “Yes” man, makes his own decisions based upon the facts of a situation, to the benefit of all parties. In response to questions from the Board, he stressed the importance of open communications among all Board members, along with the need for accurate factual information. Growth is inevitable, but there are things that we can do to maintain the quality of the community. The District and its roads are well-maintained. As a Board we need to convince new residents and developers that quality development is in everyone’s interest.

The Directors discussed the candidates in general; Director Demos pointed out that a selection of any candidate other than Fred Hayes would result in four directors from the De Luz Ranchos Association, and more geographic representation would be desirable. Director Roy expressed appreciation to the three candidates, and pointed out that there will be a further opportunity at the regular election in November for the two seats. Director McBride congratulated all three candidates on taking the responsibility to serve their community, and announced that he would not be filing for reelection at the conclusion of his current term. He agreed with Director Demos’ endorsement of candidates from other parts of the District. Director Buescher disagreed with the geographic approach, because of the way our District is divided up. Directors are elected at large. Candidates should be examined on their qualifications. He had spoken to Rubin about running even before Director Thomas announced his resignation, and Steve had expressed an interest in doing that. Based upon this demonstration of commitment above and beyond what we have seen historically, he strongly urged a vote for Rubin. 

The Board decided to proceed with an open vote; the candidates voluntarily removed themselves from the proceedings during the vote. Votes were cast as follows:       

For Fred M. Hayes:                  Directors Demos, McBride and Roy
                For Stephen P. Rubin:              Director Buescher
                For Walter F. Kelly:                 None 

The candidates returned to the room, and the appointment of Mr. Hayes was announced.  

D.    Consideration of Resolution Appointing a Director 

Motion was made by McBride, seconded by Roy, to adopt Resolution No. 03‑13: 

Appointing Fred M. Hayes to Serve on the Board of Directors until the Next District Election in 2003. 

The motion carried unanimously.  

E.    Executive Session 

The Board met in closed session under the provisions of Government Code Section 54597 to evaluate the performance of the General Manager. 

The Board returned to open session at 7:42 P.M; 

F.    Consideration of Performance Compensation for the General Manager