I.I.D. R.I.F./LAYOFF UPDATE

February 3^rd, 2010

We continue to meet with the District on the current state of their action. To date besides negotiating the “Early Retirement” and “Voluntary Release” packages we have been able to mitigate a number of circumstances regarding affected employees. We were able to swap two clerical positions eliminating a “forced transfer” between La Quinta and El Centro. Another forced transfer involving a Meter Reader has resulted in that employee staying in La Quinta. The Meter Technician in El Centro will be allowed to enter the Apprenticeship rather than being forced to “bump” into another position. Finally a CASR in El Centro will retain her Grade 2 rating rather than reduce to a 1. The District believes the final round of “bumping” for Energy will be completed by the end of February. We continue to work on issues involving seniority, “Right of Return” (to a former location after a forced transfer) and opportunities for the remaining displaced employees. The original number of affected employees (23) has been reduced to 9 being placed on the recall list. This action will occur on March 31^st. The District has confirmed that the same group of auditors is no looking at the Water and General Services groups. When new information is obtained this site will be updated. B.M. /F.S. John C. Hunter