SPECIAL MINUTES

A. PLEDGE OF ALLEGIANCE

B. ROLL CALL

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

C. ADDITIONS/ ADJUSTMENTS TO THE AGENDA

None

D. MINUTES OF PREVIOUS MEETINGS

June 8, 1999

Director Estabrook moved to approve the minutes of June 8, 1999 as written, seconded by Director Whitney. Motion was passed unanimously by the members present.

PUBLIC COMMENTS

None

SPECIAL PRESENTATION

2. RESOLUTION OF APPRECIATION AND GOOD LUCK TO GENE CALVERT FOR HIS ACCOMPLISHMENTS AS DIRECTOR OF MENDOCINO COUNTY DEPARTMENT OF TRANSPORTATION.

General Manager Williams read Resolution No. 1999-21 in its entirety. Motion for its approval was made by Director Whitney, seconded by Director Estabrook. The vote was taken as follows:

AYES: Directors: Whitney, Estabrook, Orth

NOES: Directors: None

ASENT: Directors: Eads, Skezas

Resolution 1999-21 Adopted.

Acting Chairman Orth introduced Bob Parker from the Department of Transportation. Because Mr. Calvert was unable to attend, Mr. Parker accepted the Resolution of Appreciation on his behalf, and thanked the Board for its acknowledgment.

G. PUBLIC HEARING

3. HEARING ON WATER AVAILABILITY CHARGES

General Manager Williams reported that the purpose of the hearing is allow lot owners the opportunity to protest the application of the charge to their property. Postcard notices were mailed to all lot owners, and Notices were published in the Willits News on May 5th and 21st. Two letters of protest were received from John Soares who was concerned about the unequal assessment of developed and undeveloped lots.

General Manager Williams provided a wall map showing the areas of the District which were not subject to water availability and sewer standby charges.

Acting Chairman Orth opened the public hearing at 7:10 p.m. No members of the audience came forward, so he closed the public hearing at 7:11 p.m.

Director Whitney thanked the General Manager for the wall map, which he found to be very helpful.

Director Estabrook moved to accept the Report filed by the General Manager, as to the applicability of the Water Availability Charge for Fiscal Year 1999/2000, seconded by Director Whitney. A vote was then taken on the motion, which carried unanimously by the members present.

4. HEARING ON SEWER STANDBY CHARGES

General Manager Williams explained that the Sewer Standby charge would increase this fiscal year to $50 per parcel to provide funds for capital replacement items needed in the District's sewer system. He pointed out those areas on the map which were not subject to the charge. No written protests had been received to date. Acting Chairman Orth opened the public hearing at 7:15 p.m. No members of the audience came forward, so he closed the public hearing at 7:16 p.m.

Director Estabrook moved to accept the Report filed by the General Manager, as to the applicability of the Sewer Standby Charge for Fiscal Year 1999/2000, seconded by Director Whitney. A vote was taken on the motion, which carried unanimously by the members present.

H. ACTION AGENDA

CONSIDERATION OF A DRAFT LETTER OF APPRECIATION TO THE MENDOCINO COUNTY DEPARTMENT OF TRANSPORTATION.

In response to a suggestion made by Lt. Tom Allman at the previous Board meeting, a letter of appreciation to the County Department of Transportation was drafted for the Boards consideration.

All of the Board members present expressed their appreciation to the Department of Transportation employees. Acting Chairman Orth suggested that a copy of the letter be sent to the Board of Supervisors.

Director Whitney moved to approve the letter as written, seconded by Director Estabrook. The vote was unanimous in favor of the motion.

6. CONSIDERATION OF A RESOLUTION AUTHORIZING EXPENDITURES PENDING ADOPTION OF THE 1999-2000 FISCAL YEAR BUDGET SCHEDULED FOR JULY 13, 1999.

General Manager Williams explained that because the Board agreed to defer adoption of the 1999-2000 Fiscal Year Budget until the July 13^th meeting, this Resolution would allow the present spending limits as an interim measure.

Director Estabrook moved to approve Resolution No. 1999-23, A Resolution Authorizing Expenditures Pending Adoption of the 1999-2000 Fiscal Year Budget, seconded by Director Whitney. The vote was taken as follows:

AYES: Directors: Whitney, Estabrook, Orth

NOES: Directors: None

ABSENT: Directors: Eads, Skezas

Resolution 1999-23 Adopted.

APPROVAL OF A THREE YEAR AGREEMENT WITH THE DISTRICT EMPLOYEES EFFECTIVE JULY 1, 1999.

General Manager Williams summarized the three year agreement which was developed after several months of negotiations with the representatives of the employees. He outlined the provisions for salary increases, and for the District assuming a portion of the cost of Health and Dental benefits for its retirees with at least ten years of service. He explained the impact that the agreement will have on the Budget, and commended both the Board and the employees for their cooperative work in developing the agreement.

Acting Chairman Orth expressed his appreciation for the General Manager's assistance with the negotiations.

Director Whitney moved to approve Resolution No. 1999-24, A Resolution Approving a Three Year Agreement with the District Employees, seconded by Director Estabrook. The vote was taken as follows:

AYES: Directors: Whitney, Estabrook, Orth

NOES: Directors: None

ABSENT: Directors: Eads, Skezas

Resolution 1999-24 Adopted.

CONSIDERATION OF A RESOLUTION ESTABLISHING SALARY, WAGE, FRINGE BENEFIT PLAN AND FEE SCHEDULE FOR ALL EMPLOYEES AND OFFICERS OF THE DISTRICT, EFFECTIVE JULY 1, 1999.

General Manager Williams explained that this Resolution establishes the Salary, Wage, Fringe Benefit Plan and Fee Schedule for the employees, retirees and officers of the District, as provided by the three year agreement. It also continues the existing agreement for Legal Services and authorizes the General Manager to execute an agreement for Architectural Review Services for the 1999/2000 Fiscal Year.

Director Estabrook moved to approve Resolution No. 1999-25, A Resolution Revising Resolution No. 1999-11, to Establish a Salary, Wage, Fringe Benefit Plan and Fee Schedule for All Employees and Officers of the District, Effective July 1, 1999. The motion was seconded by Director Whitney and the vote was taken as follows:

AYES: Directors: Whitney, Estabrook, Orth

NOES: Directors: None

ABSENT: Directors: Eads, Skezas

Resolution 1999-25 Adopted.

CONSIDERATION OF PROPOSED ORDINANCE DETERMINING AND PROVIDING FOR ADOPTION OF REVISED TAX FOR FIRE PROTECTION AND PREVENTION, PURSUANT TO GOVERNMENT CODE SECTION 53978, AND SCHEDULING A PUBLIC HEARING FOR JULY 13TH.

General Manager Williams pointed out that a shortfall of revenues from the Fire Tax continues to cause a deficit in the Fire Fund. The Board has discussed several possible solutions, including establishing agreements with Little Lake or CDF, reducing the level of services provided, or increasing the Fire Tax.

With the aid of the overhead projector, the General Manager reviewed charts that demonstrated various options for adjustment to the Fire Tax, as well as an analysis of the expenses of the Fire Department. As a follow up to the last Board meeting, annual escalators of 2.5% and 5% were added to the Fire Tax revenue projections, and carried out over a ten year period.

Option 2d, which recognizes that the ambulance provides service to the developed parcels and not the vacant parcels, raises the tax on developed parcels by an additional 13.6% and, with the 5% per year escalator, would generate sufficient revenues over the 10 year period to cover the projected expenses. Director Estabrook pointed out that the tax increase would not effect cash flow for the first year after the election, therefore the other options fall slightly short.

In response to an inquiry from Director Estabrook, District Counsel Neary confirmed that after the 10 year period the percentage escalator would cease, and the tax rate would remain at the level it had reached by year ten.

After a brief discussion, the Board members agreed in favor of Option 2d. Director Whitney asked the General Manager to provide a chart showing what the actual tax rate will be each year with the 5% annual escalator. Director Estabrook asked for a comparison of the proposed tax with other Fire jurisdictions. He felt that this would aid in obtaining support for the tax increase, noting that the comparison of adjusted water rates with those charged by the City of Willits helped with his decision to support the rate increase.

Acting Chairman Orth asked for a motion to waive further reading and introduce Ordinance 110, based on Option 2d. Director Estabrook stated "So Moved" and the motion was seconded by Director Whitney.

Virginia Pohlson came forward from the audience and suggested that the Board consider lowering the annual escalator to 4.1%. She pointed out that if the 5% increase was used each year, there could be a possible shortage of revenues during the last two years, because the maximum 50% increase would already have been reached.

Acting Chairman Orth then asked for a vote on the motion which was currently on the floor. The vote was taken, and the motion was passed unanimously by the members present.

Acting Chairman Orth then asked for a separate motion to schedule a Public Hearing for July 13, 1999. Director Estabrook stated "So Moved", the motion was seconded by Director Whitney and passed unanimously.

I. SPECIAL REPORTS - THE GENERAL MANAGER.

i. Significant Correspondence received since last meeting:

General Manager Williams reported that he had given the Neighborhood Traffic program sign and a copy of Bill Edmondson's speech from the previous meeting to Bob Parker from the Department of Transportation.

The Board reviewed a letter from the District's auditor, Terry E. Krieg, CPA concerning the successful completion of the fourth tri-annual peer review of his practice.

 ii. Personnel

iii. Finance

 iv. Planning

Acting Chairman Orth reported that he had attended the recent meeting of the Willits Downtown Specific Plan Committee and President Skezas should make an appointment to serve as the representative for Brooktrails.

v. Possible upcoming agenda items

Director Whitney asked that the following three items be placed on an upcoming agenda:

i. Presentation on SDRMA workshop

ii. Report on 1603 process required by Fish and Game as it relates to review of streambed alterations

iii. Invite the County Supervisor for an update on County activities

vi. Other

The minutes of the Safety Committee meeting of March 3, 1999 were reviewed and filed.

An Eagle Scout member is painting the fire hydrants in the District to earn his badge.

 J . PUBLIC COMMENTS

Connie Dixon from Marvin's Garden came forward to ask for an extension to complete the hazard abatements on the grass lots included in their contract. The General Manager agreed to extend the completion date to July 31st.

K. ADJOURNMENT

Director Estabrook moved to adjourn and Acting Chairman Orth declared the meeting of June 29, 1999 closed at 8:17 p.m.

PAUL A. WILLIAMS

Secretary to the Board of Directors

CHARLES A. ORTH

Vice President