MINUTES

A. PLEDGE OF ALLEGIANCE

B. ROLL CALL

Roll call showed the following Directors present: Monteleone, Estabrook, and Whitney. Also present were General Manager Chapman and District Counsel Neary.

C. ADDITIONS/ ADJUSTMENTS TO THE AGENDA

Director Estabrook suggested re-arranging items 3a and 3b. In response, President Whitney suggested deferring the presentation by Hal Wagenet to the December 19th focus meeting. Board members Monteleone and Estabrook agreed.

President Whitney reported that the Willits Bypass Project Development Team (PDT) meeting would be held at the CalTrans building in Ukiah on November 16th at 1:00 p.m. In response to concerns expressed by Director Orth in a memo to the Board, President Whitney clarified that he did not believe that he had a conflict of interest relating to the Willits Bypass. He does, however, have a conflict of interest relating to the Second Access, as he has business dealings with the owner of the property east of Sherwood Road, the location of the proposed routes. He appointed Director Richard Estabrook to represent the District on the PDT committee. Director Estabrook accepted the appointment.

D. MINUTES OF PREVIOUS MEETINGS

October 24, 2000

Director Estabrook moved to approve the minutes of October 24, 2000 as written, seconded by Director Monteleone. Motion was passed unanimously by the members present.

Because Terry E. Krieg had not yet arrived, the presentation of the annual audit was deferred.

F. PUBLIC HEARING

None

G. PUBLIC COMMENTS

None

Terry E. Krieg arrived at 7:10 p.m.

E. SPECIAL PRESENTATION - Terry E. Krieg, CPA

PRESENTATION OF THE ANNUAL AUDIT FOR THE FISCAL YEAR ENDED JUNE 30, 2000 AND THE RELATED MANAGEMENT LETTER.

Mr. Krieg began his presentation with a review of the combined Balance Sheets for all funds, indicating a deficit in the General Fund of $15,840, a reduction from the 1999 ending deficit balance of $47,840. However, the Special Revenue Fund, which includes Fire Services, ended the year with a deficit of $22,029, a deterioration compared to the prior year ending balance of a positive $8,597. Both funds began the year with no cash, and had to borrow approximately $70,000 from the Water Enterprise Fund to conduct General and Fire Services operations.

On a positive note, the Water, Sewer, and Golf Enterprise Funds, collectively, ended the Fiscal Year with $259,000 in cash, a significant improvement from the prior year, eliminating the need for a line of credit from the bank. However, after depreciation those funds showed a combined net loss of $140,185.

Moving on, he explained that part of the auditing process includes the development of an understanding of staff responsibilities, to assure that proper policies and procedures are in place to safeguard the District's assets. He then reviewed the recommendations outlined in the Management Report.

General Manager Chapman stressed the need for the District to address the cash overdrafts in the Fire Fund and Golf Fund, as well as the net operating losses in the other Enterprise Funds.

President Whitney suggested that copies of the Financial Statements be sent to Senator Mike Thompson and Assembly Member Virginia Strom-Martin to point out the problems faced by Special Districts. Mr. Krieg noted that limited sources of revenues are available to Special Districts, as no income is derived from sales tax.

Director Estabrook commented that the Finance Committee is aware of the concerns in the Golf and Fire Funds, and asked the General Manager to provide some projections on Fire Department expenditures, as significant changes had occurred since the end of the Fiscal Year.

President Whitney voiced concern about the deficit in working capital and connection fees being labeled as "Operating Revenues." A brief discussion ensued concerning the various maintenance districts and the sources of revenue available. Mr. Krieg also answered questions concerning capitalization of fixed assets.

President Whitney asked the General Manager to provide a detailed breakdown of items on the Balance Sheet and Income Statement, and to provide periodic updates on the recommendations in the management report. He also suggested that the Finance Committee address the management of the District's land holdings.

Bob Terry of Poppy Lane suggested that the District may be at a level where it would be advisable to consider some form of government, other than a Special District, to provide additional sources of revenue. Claudia Reed from the Willits News cautioned that reorganization could be detrimental.

General Manager Chapman complimented the efforts of the District's Finance Assistant, Pat Wilson. President Whitney thanked Mr. Krieg for attending.

H. ACTION AGENDA

2. APPEAL BY MR. MITCH HOOD TO THE GENERAL MANAGER'S DECISION THAT IT IS THE OWNER'S RESPONSIBILITY TO PAY THE COST OF THE NECESSARY EXTENSION TO CONNECT HIS PROPERTY ON SHERWOOD ROAD TO THE DISTRICT'S SEWER MAIN.

General Manager Chapman reported that Mr. Hood had applied for sewer service through the District office. The distance from the sewer system to Mr. Hood's property is approximately 782 feet along Sherwood Road. Mr. Hood felt mislead by the site development material handed out, with regards to the responsibility of costs to connect to the system.

District Counsel Neary provided a review of the events leading up to Mr. Hood's appeal, and the provisions of the Utilities Code relating to appeals.

Mr. Hood explained that when he bought the 2.33 acre parcel on Sherwood Road he was told by the County that he was within the jurisdiction of Brooktrails. He picked up a copy of the Site Development Standards from the District office which state "The District will install the water service near the property line." He did comply with the design review process and his plans were approved by the District Architect. He stated that during the process the former General Manager assured him that water was "no problem."

After he started his project he was informed by the Superintendent of Utilities that he would have to pay the cost of a lateral extension to the sewer main, as well as the connection fees, and would have to get an easement from the County to install the building sewer 800 feet up Sherwood Road to his property, at his cost.

A break was called to change the tape.

Mr. Hood made references to various sections of the Specific Plan that state water is available to the parcels in the Township, and pointed out that he had been assessed the Water Availability charge. He felt that his lot was unfairly being denied the service.

District Counsel Neary pointed out that the only issue before the Board at this time was Mr. Hood's application for sewer service, and who is responsible for the cost to provide the service. However, Mr. Hood stated that he wished to amend his application and apply for water service, also.

General Manager Chapman clarified that his Memo to the Board was incorrect in that it stated the cost of the lateral extension for sewer service to Mr. Hood's property line was estimated by District staff to be $1,452.17. That figure was actually just the cost of the perpendicular lateral from the sewer main to the edge of the road, not the cost of bringing the sewer line to the property line.

President Whitney asked Mr. Hood if he had gotten an estimate for the cost of the 800 foot extension up Sherwood Road. Mr. Hood commented that he had checked with the County about the fees for an encroachment permit, and was told that they would not grant an encroachment permit to a private citizen. He estimated the that the fees to Brooktrails would be $8,000 to $9,000 for extension of the water and sewer lines, plus hookup fees. The cost for engineering and a contractor to lay the line 30" deep along the road was estimated at $15,000 to $20,000. President Whitney asked if it would cost less to install a septic system. Mr. Hood replied that it would not.

President Whitney pointed out previous Board action on October 22, 1996 stated that "if a request is made to build on 27291 Sherwood Road and water and sewer connections are available, then service could be provided subject to all the District rules and regulations." He referenced the District's Utilities Code which states "The connection of the lateral sewer into the public sewer shall be made in strict accordance with District specifications and at the applicant's expense." However, Mr Hood felt that it was contradictory to the Specific Plan. District Counsel Neary voiced agreement with President Whitney's interpretation, and also explained that when the original subdivision was built in the '60s, certain parcels were not intended to be serviced by the District's utilities because, by choice, they did not participate in the original assessment bonds. Mr. Hood's property was one of those parcels.

Superintendent of Utilities, Wendell Wilson, came forward and provided clarification of the parcel split that occurred in 1996, and the location of the existing utility lines.

District Counsel Neary explained that with the adoption of the Specific Plan in 1997, policy was established to allow connection to the system for each parcel within the boundary of the District, unless there is a strong justifiable cause for not doing so. However, nothing in the Specific Plan states that the District will assume that expense.

President Whitney suggested that the District assist Mr. Hood with his effort to obtain the encroachment permit from the County. Mr. Hood replied that he had contacted the owner of the 10 acre parcel below him, Mr. Rick Chehab, who had agreed to an easement through his property in exchange for Mr. Hood paying the cost of the lateral extension to Mr. Chehab's property. Mr. Chehab then talked to the previous General Manager of the District, who demanded a five-foot utility easement, which negated the arrangement.

President Whitney explained that it would be a private easement between the two property owners, and that the District would simply need to inspect the lines after they were installed. Wendell Wilson agreed, and stated that the District would have no problem with that arrangement if it were to occur.

Director Monteleone restated the Board's position that water and sewer are available to Mr. Hood's property, and that the cost of connecting to the system would be his responsibility. Mr. Hood restated his position that the because the Board requires him to abide by the design standards as outlined in the packet given to him at the District office, it should stand behind its statement in that packet that "the District will install the water service near the property line."

President Whitney made a motion to deny Mr. Hood's appeal, but to recognize his right to a water and sewer connection, subject to the rules and regulations of the District. He clarified that the additional cost of the sewer lateral and the extension to the property line must be paid by Mr. Hood. The motion was seconded by Director Estabrook, and passed unanimously by the members present.

A break was then called.

3a. FIRST REVIEW OF COUNTY PRELIMINARY PROJECT STUDY REPORT (PPSR) ON BROOKTRAILS SECOND ACCESS.

President Whitney left the table due to a conflict of interest, as he has a business relationship with the owner of the property east of Sherwood Road.

Director Estabrook announced that a full review of the Preliminary Project Study Report (PPSR) had been scheduled for the December 19th focus meeting, when Doug Ellinger from the Department of Transportation would make a presentation on the subject. He asked staff to obtain a copy of the Alta Transportation study prior to that time and to invite a representative from Alta to attend.

Director Monteleone felt that the statement in the last paragraph of the first page "Also, there are already several unpaved emergency access routes in place and identified for use by the excellent Brooktrails Township Evacuation Plan" was erroneous, as she felt most residents were unfamiliar with the evacuation plan. Also, at the bottom of the fifth page, she felt the statement "While there are several existing options for emergency egress in the event of a fire or earthquake" was untrue. She was concerned that the two issues, the bypass and the second access, were merging, and stressed the need not to lose the original vision to have a more easily accessible and community identified emergency route out of Brooktrails. She voiced concern about the growth inducement of a freeway exit to Brooktrails, and stated her opinion that a high quality emergency evacuation route does not necessarily have to be a paved road.

Director Estabrook agreed that the primary issue is emergency escape during a fire or disaster, and felt that several routes are necessary, including the route to Highway 20. As to the reduction of traffic on Sherwood Road, he believed that the time savings for commuters resulting from the second access would be minimal. The bypass, however, would relieve a good portion of the problems at the Sherwood Road/101 and Highway 20/101 intersections. He also voiced concern about growth inducement, and pointed out that changing the traffic pattern into Brooktrails has the potential to change the whole traffic flow of the area, because of the increased volume of traffic.

Hal Wagenet came forward and stated his belief that growth will occur, and already has occurred regardless of the second access. He stressed the need to coordinate the two projects to take advantage of available state and federal funding.

Warren Miller pointed out that a recent snow storm resulted in the closure of Sherwood Road due to an accident. He felt that any access road must take into account adverse weather, as well as fire and natural disaster such as earthquake or flood.

Kris Wagner asked if the County intended the second access to also serve as the District's evacuation route, or if they intended to devise a more comprehensive evacuation plan. Director Estabrook clarified that the second access is a separate issue from the evacuation plan.

Janice Gendreau felt that other routes should be explored, as one additional route would be inadequate. She suggested a new road be built to lessen the impact on residential streets.

Mike Aplet voiced concern about the routes that were in close proximity to the earthquake fault, and felt that two smaller roads would serve the District better than one large road.

Director Estabrook continued the item to the December 19th focus meeting.

President Whitney returned to the table, and moved to continue the meeting to 11:30 p.m. His motion was passed unanimously by the members present.

He also stated that although he did have a conflict of interest concerning the second access, he did not have a conflict of interest concerning evacuation routes. He pointed out that all-weather emergency access routes do exist and that copies of the evacuation plan are available at the District office. He asked the General Manager to obtain an update on the County Emergency Evacuation Committee's evaluation of the District's evacuation plan, and to provide a report for an upcoming meeting.

3b. PRESENTATION BY HAL WAGENET, DISCUSSION OF AGENDA FOR THE WILLITS BYPASS PROJECT DEVELOPMENT TEAM MEETING TO BE HELD ON NOVEMBER 16TH IN UKIAH, DISCUSSION OF PDT COMMITTEE MEMBERSHIP.

Deferred to December 19, 2000

4. CONSIDERATION OF A LETTER TRANSMITTING COMMENTS ON THE DRAFT ROAD STANDARDS TO THE COUNTY.

President Whitney moved to approve the letter as written. The motion was seconded by Director Estabrook, and passed unanimously by the members present.

5. APPEAL TO THE BOARD OF SUPERVISORS OF THE LAWRENCE WHITE SUBDIVISION APPROVAL.

Bob Whitney explained that he and Richard Estabrook had filed the appeal as private citizens, as they were concerned about the District's sewer easement, and because they felt that environmental issues were not adequately addressed. An appeal was also filed by the Willits Environmental Center.

General Manager Chapman reported that he had spoken with Mr. White on several occasions, and that he did seem agreeable to the pedestrian easement if the District were to consider the possibility of providing him with a sewer connection.

President Whitney pointed out that the proposed road is directly on top of the sewer easement, and felt that it should be specifically recorded in the deed who is responsible for repairs to the road if the District must repair the sewer line.

He stated, for the record, that the District does not currently have a civil engineered drainage or erosion control plan. This was of concern to him because the road, sewer easement, and trail are all in a sensitive salmonid habitat area.

He suggested a proposal be made to Mr. White that the road be moved off of the sewer easement. The District could then put its trail within the fifteen foot easement. Also, he asked for a no development restriction within close proximity to Willits Creek. He stated that the District is not against what Mr. White proposes, in concept, as long as its interests are protected. As to the appeal which he and Richard Estabrook filed, he agreed to abide by the Board's direction as to whether to pursue it or not, based on the outcome of the negotiations with Mr. White.

Director Estabrook clarified that his appeal was in no way directed toward Larry White, but was directed at the Planning Commission for what he felt was a poor decision to not uphold the provisions of the General Plan.

President Whitney made a motion to authorize the General Manager to negotiate a settlement of the appeal with Mr. White in which Brooktrails' interests are protected, specifically in regards to the pedestrian/bike way trail easement from Brooktrails to Willits, for the protection of the salmonid habitat, and for protection of the sewer easement, and to authorize he and Director Estabrook to meet with Mr. White, as representatives of the Board of Directors, to assure Mr. White that they, as private citizens, will abide by the direction of the Board, with regards to the appeal.

Director Estabrook seconded the motion.

Janice Gendreau voiced concern about the road being built over the sewer line.

Mike Aplet reported on a recent chance meeting with Mr. White, wherein Mr. White suggested an alternative location for the trail.

A vote was then taken on the motion, which passed unanimously by the members present.

6. REVIEW OF BPOA NEWSLETTER.

District Counsel Neary clarified the restrictions on use of the District's utility customers data base for mailing by the BPOA. He explained that it would be permitted as long as it were a joint venture and the District maintained control of the mailing.

Board members reviewed the mock-up newsletter provided by Director Monteleone and offered suggestions as to the format. President Whitney felt that it should be clear that BPOA and the Township are separate entities, and that BPOA is not a government agency.

Warren Miller suggested the newsletter be addressed to "Occupant" to avoid problems using individual names. Also, he felt that the newsletter should make it clear that people do not have to be members to attend events or meetings.

Director Monteleone clarified that it is BPOA's intent to expand their newsletter beyond the current membership.

President Whitney made a motion to approve the use of the District's labels, the cover letter written by the General Manager from the Brooktrails Township Community Services District, and attachments by the BPOA, with the understanding that BPOA would cover the cost of postage and printing, and provide assistance to District staff with preparation of newsletters for mailing. The motion was seconded by Director Monteleone.

Kris Wagner suggested the mailing include residents of the Fire District. President Whitney suggested a data base of mailing addresses be developed for future use.

A vote was taken on the motion which passed unanimously by the members present.

7. REVIEW AND DISCUSSION OF THE PROPANE ALLIANCE AT LAKE WILDWOOD ASSOCIATION.

President Whitney asked the General Manager to obtain a copy of the contract used by Lake Wildwood and Suburban Propane, if possible, and to contact the California Public Utilities Commission to determine if the District would be authorized to form a similar alliance within Brooktrails.

I. SPECIAL REPORTS - GENERAL MANAGER

i. Significant Correspondence received since last meeting:

A notice was received from Solid Wastes of Willits concerning a rate reduction due to the reduction in the surcharge from MSWMA. President Whitney asked the General Manager to verify the calculations used in determining the reduction.

ii. Personnel

iii. Finance

iv. Planning

v. Possible upcoming agenda items

vi. Other

J. PUBLIC COMMENTS

None

K. ADJOURNMENT

Director Monteleone moved to adjourn and President Whitney declared the meeting of November 14, 2000 closed at 11:47 p.m.

BOB WHITNEY
President

MICHAEL V. CHAPMAN
Secretary to the Board of Directors