MINUTES

A. PLEDGE OF ALLEGIANCE

B. ROLL CALL

Roll call showed the following Directors present: Eads, Whitney, Estabrook, Orth and Skezas. Also present were General Manager Williams and District Counsel Neary.

C. ADDITIONS/ ADJUSTMENTS TO THE AGENDA

General Manager Williams reported that after the agenda was finalized, notice was received from LAFCO that nominations for Special District Alternate must be received prior to December 4th. Because the next Board meeting is December 14th, he asked that the Board vote on adding this matter to the agenda as item number 5.

Director Whitney moved to approve addition of item number 5 to the agenda, the motion was seconded by Director Estabrook and passed unanimously.

D. MINUTES OF PREVIOUS MEETINGS

October 26, 1999

Director Estabrook asked that a modification be made to page 2927 of the minutes. He asked that "He also suggested striking everything after "911 dispatcher" in paragraph 2a, which will become paragraph 1a after deleting paragraph 2." be added to the end of paragraph 6 of item 3. Director Orth asked that on page 2928, the word "numbered" be added between "posting" and "signs" in paragraph 5 of item 4.

Director Eads moved to approve the minutes of October 26, 1999 as modified, seconded by Director Whitney. Motion was passed unanimously.

E. SPECIAL PRESENTATION

None

F. PUBLIC HEARING

None

G. PUBLIC COMMENTS

None

H. ACTION AGENDA

2. REVIEW OF ORDINANCE NO. 76

General Manager Williams summarized the previous Board discussions concerning the District's Utilities Code, Ordinance No. 76. Items under consideration included possible installation of construction meters pending final approval by the District Architect, and questions raised by Director Whitney concerning the District's procedure for termination of service due to non-payment of the water bill. He also reviewed amendments made to the Ordinance to date.

District Counsel Neary gave a brief history of the development of the District's Utilities Code and explained the provisions of Section 60370 of the Government Code, which addresses disconnection of water service for non-payment.

With regards to installation of a construction meter, Director Eads asked for clarification of the procedure in the case of an appeal of the District Architect's decision, as he was concerned that the property owner may be denied occupancy based on a slight deviation from the approved plans. District Counsel Neary suggested a provision allowing the use of the construction meter for the duration of the appeal process, as long as the project passed the County's building inspection.

With regards to discontinuance of service for non-payment, Director Whitney felt that the notice provided to customers should make them aware of the appeal process, in case special circumstances exist. He also asked that the language of section 2-502(b) on page 17 of 35 be changed so that all construction, not just single family residences, be provided construction meters.

He brought attention to page 2 of the County Ordinance No. 3959 wherein the definition of "New Construction" included clearing and grading, and Sec. 20.232.030 which states that such work shall not commence without prior approval of the District, as those items relate to an issue recently addressed by the Board. He asked for a future agenda item to discuss possible action based on those provisions of the ordinance.

Director Estabrook agreed with Director Whitney and pointed out Sec. 20.232.065 on page 5 which states that any new construction made without approval is declared a public nuisance. He felt that the District should be able to deal with such violations on that basis.

With regards to the installation of construction meters, he inquired what enforcement would be available in the case of a setback violation, and stated his opposition to granting variances to the design standards. District Counsel Neary assured him that the construction meter provision would give the Board the authority to withhold a permanent water connection in that case. If that remedy seemed too strict, Section 1 of Ordinance 76 gives the Board the power to suspend or modify any of the provisions of the Ordinance.

Director Orth empathized that all requirements by the District Architect should be in writing, so a clear understanding exists between all parties involved.

President Skezas suggested that the District's inspection schedule match that of the County's, every three months preceding the County inspection, and that the County Building Department be asked to require sign-off by Brooktrails prior to issuing a final.

Director Eads suggested establishing a higher water tier for the construction period, as normally very little water is required for construction.

3. REPORT BACK ON COST OF ABATEMENT OF 23921 AZALEA PLACE.

General Manager Williams explained that the cost of abatement for this lot had been removed from two prior lists pending more information. He explained that the first year there was a variance between the bid price and the lien amount, the second time it appeared on the list twice, once for grass abatement and once as a carry over item from the previous year. Rather than carry this cost for another cycle, proposal was to submit it individually to the County for the collection process.

Director Estabrook moved to approve Resolution 1999-41, a Resolution confirming the cost of abatement and providing for the collection on the regular tax bill by The County of Mendocino, seconded by Director Orth. The vote on the motion as follows:

AYES: Directors: Eads, Whitney, Estabrook, Orth, Skezas

NOES: Directors: None

ABSENT: Directors: None

Resolution 1999-41 Adopted.

4. UPDATE ON Y2K STATUS

General Manager Williams outlined the changes since the last update, including an up-coming video conference addressing the issue, and additional information concerning leasing of generators. Compliance software downloaded from the internet indicated that the District's computer network was Y2K compliant. As suggested by the Board, an audit of the District's facilities is scheduled to be conducted on January first.

Director Eads suggested that additional chemicals be on hand to operate the water plant in the event that deliveries are delayed. Director Whitney suggested simplifying the statement on the December water bill, changing "If there is an extended loss of power after December 31, 1999" to "If a loss of power affects your water supply." He also asked for clarification that "daily" included Saturday, Sunday and holidays.

5. NOMINATIONS FOR SPECIAL DISTRICT ALTERNATE FOR LAFCO.

General Manager Williams reported notice had been received from LAFCO that Ray Hebrard had been elected Special District Representative and they were accepting nominations for Special District Alternative. Director Whitney moved to nominate Director Orth for the position. The motion was seconded by Director Estabrook and passed unanimously.

I. SPECIAL REPORTS

General Manager will report on significant activities within the District including but not limited to the following:

i. Significant Correspondence received since last meeting:

ii. Personnel:

Update on Fire Department

General Manager Williams reported that staff had hoped to make progress on the update to the Evacuation Plan, however the Fire Prevention Officer was off work on unpaid leave of absence, due to a non-work related injury, until at least December first. The Fire Department paid staff were in the midst of issuing the final hazard abatement notices, so they were unable to make as much progress they had hoped.

No response had yet been received to the letter which was sent to the Sheriff requesting a written description of the 911 process.

An invitation had been extended to the primary ambulance service to attend the next meeting and discuss their plans, both near-term and long-term.

Director Eads asked for a projection of when services will have to be trimmed as a result of Budget shortages, due to the failure of the Fire Tax measure. General Manager Williams answered that the process will begin with the Rate and Fee study in January.

iii. Finance

October Warrants and Accounts Payable were reviewed by the Board. A chart was provided comparing revenues and expenses for the current year with those of the previous year indicating that approximately the same amount of payments were made. However, with the increase in the water rates and the use of $50,000 in reserves, necessity of a line of credit was avoided.

Susan Monteleone asked for an explanation of the amount payable for sewer to the City of Willits, and the terms of the District's agreement with them.

Director Whitney asked for a copy of the invoices from the Department of Health and from the Department of Water Resources and for details on the nature of those charges. He complimented the General Manager on the format of the chart and asked for a reconciliation of the items listed with the actual Budget categories. Director Estabrook asked that the "Cash Flow Need" report also include the Accounts Payable.

As requested by Director Eads, General Manager Williams provided a report on the financial impact of lot mergers and donations. Director Whitney asked that the number of lots reduced by mergers be included in the chart, as it was included in the calculations.

Director Estabrook pointed out that each lot reduced represents approximately $80 per year in lost revenues. He provided charts projecting the cost per residence to make up the lost revenues as a result of mergers and donations over the next 15 years. General Manager Williams prepared a report on the impact of fees and charges over the last five years, as a prelude to the up-coming annual Rate and Fee study. Problem areas continue to be Fire and Golf. After a brief question and answer session, President Skezas called for a break to change the tape.

The annual report from the Special District Risk Management Authority was reviewed by the Board.

iv. Planning

The County of Mendocino revised their Resolution to reflect that the Brooktrails Board of Directors recommended the Wild Oat Canyon proposal, and did not endorse the Elsie Bypass proposal as stated in the first draft.

The Breakdown of Activity within the District was provided for the Board's review.

v. Possible upcoming agenda items

vi. Other

Director Estabrook provided a summary of the Local Task Force meeting which he attended on 10/28/99.

J. PUBLIC COMMENTS

Virginia Pohlson asked for clarification on the use of the connection fees and the sources of funds for capital improvements to the water and sewer systems. She pointed out that if development slows, the cost per household to maintain the system will increase.

President Skezas then thanked fellow Board members for the work they had done over the last two years, and congratulated Board members-elect Susan Monteleone and Richard Venturi who were present in the audience.

K. ADJOURNMENT

Director Orth moved to adjourn and President Skezas declared the meeting of November 9, 1999 closed at 9:10 p.m.

PAUL A. WILLIAMS

Secretary to the Board of Directors

BOB WHITNEY

President