I hereby certify that the following agenda

was posted at least 72 hours prior to the time

of the meeting so noticed below at 24251 Los

Alisos Boulevard, Lake Forest, California.

ROBERT R. HILL, Assistant Secretary of the

El Toro Water District and the Board of

Directors thereof

AGENDA

EL TORO WATER DISTRICT

REGULAR MEETING OF THE

BOARD OF DIRECTORS

AND

PLAN ADMINISTRATOR MEETINGS

JANUARY 26, 2006

7:30 A.M.

CALL MEETING TO ORDER –President Martin

PLEDGE OF ALLEGIANCE – Director Kahn

ORAL COMMUNICATIONS/PUBLIC COMMENTS

Members of the public may address the Board at this time or they may reserve this opportunity with regard to an item on the agenda, until said item is discussed by the Board. Comments on other items will be heard at the time set aside for “DIRECTORS COMMENTS/NON-AGENDA ITEMS.” The public will identify themselves when called on, and limit their comments to three minutes.

PRESENTATION OF AWARDS, RECOGNITIONS AND INTRODUCTIONS

a. Service Awards

The Board will recognize Eric Wilson, Mechanic, for five-years of service with the District.

b. Continuing Education & Training, Degree and Certification Program acknowledgement

The Board will recognize Troy Davis, Crew Chief, for achieving his Grade D-4 Operator Certificate.

c. Special District/Employee Association and Community Award acknowledgement

No acknowledgements this month.

PLAN ADMINISTRATOR MEETING

January 26, 2006

1. Union Bank of California (UBOC) Retirement Savings Plan Report

(Report Will Be Distributed At Meeting)

At this time President Martin will call the meeting of the Plan Administrator of the El Toro Water District's Retirement Savings Plan and Trust Agreement to order for the purpose of reviewing the investment performance of the District’s 401(k) Retirement Plan Investment Report as of December 31, 2005.

a. Representatives from Union Bank of California will review and comment on the Investment Policies and the performance of ETWD’s Retirement Plan and Trust Agreement.

CLOSE PLAN ADMINISTRATOR MEETING

At this time the Plan Administrator meeting will close.

REGULAR SESSION

CONSENT CALENDAR

(All matters under the Consent Calendar will be approved by one motion unless a Board member or a member of the public requests, separate action or discussion on a specific item)

2. Approval of Minutes (Minutes Included)

Approve minutes for the December 22, 2005 El Toro Water District Board of Directors meeting and Public Facilities Corporation (PFC)

3. Attendance at Conferences and Meetings

The Board will consider authorizing Directors Ted F. Martin and John S. Dudley, and General Manager Bob Hill’s attendance at the January 30-31, 2006 Urban Water Conference being held at the Huntington Beach Hyatt Regency.

APPROVAL OF ITEMS RECOMMENDED FOR APPROVAL BY THE ENGINEERING, FINANCE/INSURANCE (FIC) AND PERSONNEL COMMITTEES: (Reference Material for the Action and Informational Items is included in the agenda package for the January 22, 2006 Engineering, FIC and Personnel Committee Meeting)

a. Approve minutes for the December 20, 2005, Engineering and Finance/Insurance Committee meeting.

b. Approve Resolution No. 06-01-01 Amending Various El Toro Water District Policy Statements and Adopting Policy Statement 2006-20 (IV) “Ethics Training For Directors”

RESOLUTION NO. 06-01-01

RESOLUTION OF THE BOARD OF DIRECTORS OF THE

EL TORO WATER DISTRICT AMENDING IN THEIR

ENTIRETY POLICY STATEMENTS 1985-5 (IV)

“DIRECTOR TRAVEL AND EXPENSE REIMBURSEMENT”, 1993-10 (IV)

“DIRECTORS COMPENSATION”, AND 1997-14 (IV)

“COMMITTEES OF THE BOARD” AND ADOPTING POLICY

STATEMENT 2006-20 (IV) “ETHICS TRAINING FOR DIRECTORS”

c. Approve adjusting the District’s employee salary range schedule as proposed by staff.

d. Approve, ratify and confirm payment of those bills set forth in the schedule of Bills for Consideration dated January 24, 2006, and receive and file Financial Statements through December 31, 2005.

ENGINEERING AND FINANCE/INSURANCE COMMITTEE (FIC) GENERAL INFORMATION ITEMS TO BE RECEIVED AND FILED

e. El Toro Water District Capital Project Status Report

f. Engineering Items Discussed at Various Conferences and Meetings

g. Insurance Report for October 1, 2005 through December 31, 2005.

h. El Toro Water District Investment Policy Statement 1985-3 (IV)

i. ETWD Budget Schedule for Fiscal Year 2006/2007

j. Employee 401(k) and 457 Retirement Plan Conversion Update

APPROVAL OF ITEMS REMOVED FROM TODAY’S CONSENT CALENDAR

The Board will discuss items removed from today’s Consent Calendar requiring further discussion.

Recommended Action: The Board will be requested to approve the items removed from today’s consent Calendar.

GENERAL MANAGER ACTION ITEMS

4. Southern California Water Committee, Inc. (SCWC) Membership

(Reference Material Included)

Staff will comment on the District joining the Southern California Water Committee, Inc. The SCWC was organized in 1984 and has effectively fought to ensure that Southern California’s water needs and concerns are heard. The SCWC brings together eight counties and their diverse interests for one purpose; to secure adequate, reliable, affordable, quality supply of water for California.

Recommended Board Action: The Board will consider joining the Southern California Water Committee, Inc. in the amount of $750.00 annually.

GENERAL MANAGER INFORMATION ITEMS

5. General Manager’s Monthly Report (Report Included)

Mr. Hill will review and comment on the General Manager’s Monthly Report.

6. The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 and the Governor’s Strategic Growth Plan (Reference Material Included)

Staff will review and comment on the proposed Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 and the Governor’s Infrastructure Investment Program and other related legislative issues.

7. Public Education and Outreach/Water Conservation Report

(Reference Material Included)

a. Staff will comment on ETWD’s Water Conservation monthly status report.

b. Staff will comment on ETWD’s Public Outreach Program.

8. SOCWA Reports (Reference Material Included)

a. SOCWA Finance Committee Meeting – January 17, 2006

b. Engineering Committee Meeting – January 19, 2006

9. MUNICIPAL WATER DISTRICT OF ORANGE COUNTY (MWDOC) Report

(Reference Material Included)

a. MWDOC Board President Letter – December 22, 2005

b. MWDOC Administration & Finance Committee – January 11, 2006

c. MWDOC Planning and Operations Committee – January 12, 2006

d. MWDOC Board of Directors Meeting – January 18, 2006

10. LOCAL AGENCY FORMATION COMMISSION (LAFCO) REPORT

(Reference Material Included)

There was not a regular scheduled LAFCO Meeting for January.

11. City Coordination Efforts Reference Material Included)

There were no meetings for the month of January.

ATTORNEY REPORT

OPEN SESSION

Mr. Granito will report on pending legislation and/or legal matters of general interest to public agencies.

COMMITTEE AND GENERAL INFORMATION

12. Computer Committee Report (Oral)

No report.

13. Dates to Remember for January/February 2006

(Reference Material Included)

14. Carry-Over Pending Matters

There were no “Carry-Over Pending Matters”.

DIRECTOR COMMENTS/NON-AGENDA ITEMS

ADJOURNMENT

Recommended Board Action: The Board will be requested to take action adjourning today’s Board meeting to Thursday, February 24, 2006 at 7:30 A.M. at the El Toro Water District, 24251 Los Alisos Boulevard, Lake Forest, California.

Request for Disability-Related Modifications or Accommodations

If you require any disability-related accommodation, including auxiliary aids or services, in order to participate in this public meeting, please telephone the District's Recording Secretary, Carolyn Adams at (949) 837-7050, extension 225 at least forty-eight (48) hours prior to said meeting. If you prefer, your request may be submitted in writing to El Toro Water District, P.O. Box 4000, Laguna Hills, California 92654, Attention: Carolyn Adams.