MINUTES

A. PLEDGE OF ALLEGIANCE

B. ROLL CALL

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

C. ADDITIONS/ ADJUSTMENTS TO THE AGENDA

None

D. MINUTES OF PREVIOUS MEETINGS

March 27, 2001

Director Venturi moved to approve the minutes of March 27, 2001 as written, seconded by Director Monteleone. Motion was passed unanimously.

E. SPECIAL PRESENTATION - None

F. PUBLIC HEARING - None

G. PUBLIC COMMENTS

Robert Terry of Poppy Lane presented the budget for the Neighborhood Emergency Services Team (NEST) which had been adopted by group on Monday April 9, 2001.

H. ACTION AGENDA

2. Routine Items

a) CONSIDERATION OF NOTICE OF INTENTION TO FIX WATER AVAILABILITY CHARGE FOR FISCAL YEAR 2001/2002AND SCHEDULE A PUBLIC HEARING FOR 04/24/2001.

b) CONSIDERATION OF A RESOLUTION PRESCRIBING SEWER STANDBY CHARGE FOR FISCAL YEAR 2001/2002 & SCHEDULE PUBLIC HEARING FOR 06/26/2001.

President Estabrook asked for clarification of the properties subject to sewer standby fees. District Counsel Neary responded that a list has been developed of parcels that are not eligible for sewer service, and that it is reviewed by District staff on an annual basis. President Estabrook asked that the list be double-checked to assure that all parcels within 300 feet of the sewer main are paying the fee.

Director Whitney stated that the Assessor's office has maps based on the Board of Equalization's information, and asked that the related map be obtained from the County, reconciled with the list, and provided for Board review at the public hearing in June.

District Counsel Neary explained that the list received annually from the County is developed by a sort process using tax code areas that are within the Community Services District.

Director Orth reported that meetings have been scheduled by LAFCO to adopt its 2001/2002 Budget.

Director Venturi made a motion to accept both items 2a and 2b, adopt Resolution No. 2001-3, a Resolution prescribing Sewer Standby charge for Fiscal Year 2001/2002, and schedule the public hearings for April 24, 2001 and June 26, 2001. The motion was seconded by Director Monteleone, and a vote was taken as follows:

AYES: Directors: Orth, Venturi, Monteleone, Estabrook, Whitney

NOES: Directors: None

ABSENT: Directors: None

Resolution No. 2001-3 Adopted

3. UPDATE ON STATUS OF BROOKTRAILS LODGE USE PERMIT APPLICATION.

General Manager Chapman read aloud the letter sent to Dr. Gitlin dated March 30, 2001, in which he explained to Dr. Gitlin that the Board supports the improvement of the Lodge, and a project restricted to senior citizens, but not the open-ended conversion of the cabins and motel units to long-term use by anyone.

Director Whitney called attention to the plans submitted by Dr. Gitlin for Design Review in May of 1990, that were on display on an easel by the Director's table, noting that a lot of time and effort went into those plans. He did not understand why Dr. Gitlin did not present them to the ad-hoc committee during their meetings. He provided a draft letter to Julie Price at the Planning and Building Department for the Board's consideration, in which he quoted the provisions of the Utilities Code that addresses the number of water connections allowed per parcel. He pointed out that the Lodge property is three legal parcels, and Dr. Gitlin is asking for 40 connections. The conclusion of the letter suggests that Dr. Gitlin first seek District approval for the additional connections prior to pursuing the use permit through the County.

Director Whitney and Director Monteleone provided a review of the ad-hoc committee's points of concern, including the restriction to senior housing, the size of the motel units, and the selection of a property manager.

Director Venturi asked for clarification from Counsel on the letter sent to Dr. Gitlin from the Planning Department, in which they determined that the project met the intents of the Specific Plan and would not require a variance for the smaller unit size at the motel. District Counsel Neary suggested that a formal meeting be held with the Planning Department to clarify the issues. He pointed out that a letter suggesting so had been sent to Ray Hall.

President Estabrook clarified that the District's role in the use permit process is to comment rather than to approve or disapprove, and spoke in favor of the approach taken in the proposed draft letter, which was for the Board to address the water connection issue.

Director Orth reported on a recent conversation with Supervisor Tom Lucier, who expressed his willingness to meet with the General Manager to discuss Brooktrails issues.

District Counsel Neary clarified that the statement made by Director Whitney, that he would be prepared to recommend waiver of certain provisions of the Utilities Code, should not be construed by the applicant as a promise of future Board action, as Dr. Gitlin would have to make an application to the District for relief of the operations of the Utilities Code.

Director Orth suggested a public hearing process be required in the event of a change in use from senior assisted housing. President Estabrook asked counsel if that could be a condition of the water connection permit or if it would be a part of the use permit approval. District Counsel Neary replied that the Board could state conditions for relief of provisions of its Utilities Code, and that the applicant could either accept those conditions or reject them.

President Estabrook invited comments from the audience. Bob Terry of Poppy Lane voiced concern that the County does not recognize the Specific Plan as a part of its General Plan.

Devina Sentack voiced appreciation for Dr. Gitlin's efforts in restoring the Lodge property, and asked for clarification of the Board's opposition to the project. President Estabrook summarized the Board's concerns.

Director Whitney pointed out the limited water supply and the limited number of allowable connections, noting that the project would add an additional 39 long-term residential units, and was currently zoned Commercial. He also pointed out the Board's concern about the fact that the project has not been clearly defined.

District Counsel Neary commented that the District was not working against Dr. Gitlin, and pointed out that one of the Directors had made the suggestion that $60,000 to $70,000 in connection fees be waived to assist the facilitation of the project.

Director Orth pointed out that it is the Board's responsibility to regulate water use within the District.

Claudia Reed, with the Willits News, asked for clarification of the proposed use of the motel units, and if that would effect the Board's position with regards to the size of the units. Director Whitney outlined the letter sent to Dr. Gitlin asking him to apply for development review, so that the proposed uses could be determined and the issues could be resolved.

Director Whitney made a motion that the General Manager complete the draft letter to Julie Price at the County Planning Department, and have it reviewed by District Counsel Neary. The motion was seconded by Director Monteleone.

Director Monteleone stressed the fact that the Board is not asking any more from Dr. Gitlin than they would from anyone else, which is that he simply follow the Design Review process for what he is proposing. She explained the Board's concerns about the open-ended long term use of the motel units as residential housing.

Dr. Gitlin then came forward and thanked the Board for their efforts. He stressed that at no time did he make a unilateral decision to say that the process of dialog is over, and felt that there was nothing antagonistic about the letter that he sent to the General Manager. He expressed frustration that at the last meeting he expected to see both Director Whitney and Director Monteleone, but he met only with General Manager Chapman. He explained that the purpose of his letter was to clarify the points discussed at that meeting.

General Manager Chapman read aloud paragraph 2 of Dr. Gitlin's March 29th letter, commenting that he had no desire to review tenant applications. Regarding the connection fees, it was his understanding that the committee suggested a substantial deduction in those fees of approximately $30,000 by considering the motel and lodge as one unit, as well as a reduction in the annual charge of approximately $3,000. Other points discussed at the meeting were the Board's preference to focus on senior housing and the possibility of reducing the number of units in the motel from twenty to ten, to prevent a future tenement situation.

Dr. Gitlin asked the Board to provide a letter to him clarifying the requirements.

Director Monteleone reminded Dr. Gitlin that the ad-hoc committee consisted of only two Board members, and suggested that he complete the Design Review application and tell the Board exactly what he wants to do. Dr. Gitlin pointed out that he had already been through the Design Review process. Director Whitney clarified that the previous application was for exterior changes to the building, and that another application would be necessary for development review, as he is changing the use of commercial property from short term to long term which, under the District's Utilities Code, requires a separate water meter for each unit.

District Counsel Neary explained that the provisions of the Utilities Code are applied to each residence within the District. However, the Ordinance permits application for a waiver, and at least two Board members have voiced a willingness to consider relief from the application of the Ordinance. He advised Dr. Gitlin to make his application to find out what conditions will be placed on him. Dr. Gitlin asked for clarification of the specific section of the Utilities Code that requires him to re-apply for water service for property that has water service "grandfathered in." District Counsel Neary read section 2-402 aloud, noting that heretofore the Lodge has been commercial property in which case one meter is sufficient. However, if the property is converted to residential the Utilities Code requires that there be one meter per residential structure.

Director Whitney commented that the zoning of the property may also be an issue.

President Estabrook encouraged Dr. Gitlin to make an application to the District as soon as convenient. Dr. Gitlin asked the General Manager to clarify where, in his March 30th letter, he was asked to apply for water. In response, Director Venturi stated "As a Board, we are asking you to make an application for a variance to the current Utilities Ordinance, so that we can make a decision." Dr. Gitlin again asked for a letter instructing him to do so. Director Whitney suggested that the Board move ahead with a vote on the motion currently on the floor, and urged Dr. Gitlin to contact the General Manager for assistance with his application, adding that another letter would be unnecessary.

Dr. Gitlin commented that he remains committed to working with the Board, seeing this through, and completing a project that we can all be proud of.

Bob Houtz commented that it would be to Dr. Gitlins' advantage to put down his full intent on his application.

President Estabrook summarized the motion, and a vote was taken which passed unanimously. A break was called.

4. CONSIDERATION OF SENDING A LETTER TO THE CITY OF WILLITS REGARDING COMMENTS ON THE WILLITS SEWER PROJECT NOTICE OF PREPARATION.

Director Whitney reviewed his draft letter which was sent to the District office by fax. He suggested eliminating the attached table, but asked the General Manager to develop a similar table over the next year based on sewer flow.

He provided a brief description of the sewage disposal process, speaking highly of the City's process, staff, and proposed project. He asked that the letter focus on Brooktrails, and recognize the mitigation requirements needed to reduce the flow into the treatment plant from the District. He asked that the letter include reference to the Boards' endorsement of EBC's proposal to utilize carbon sequestration using redwood trees and effluent from one of the District's sewer lines, and that it not refer to amending the project definition.

Director Orth pointed out that Alternative 3 in the report, the actual proposal, did not include Brooktrails' build-out, and asked that the letter request it be recognized within the document. Also, he suggested the letter state that the District has established a sewer sinking fund to address infiltration and other sewer flow issues.

Director Venturi asked that the phrase "embarked upon a trial project" be re-worded, as he did not feel that had occurred, and suggested "we are exploring some possibilities."

President Estabrook commented that document being reviewed is a notice of proposal to start an EIR, and the Board's purpose at this stage is to be sure that the range of alternatives being looked is adequate. He concurred that Alternative 3 is the preferred alternative to make comments on, and that the issues have been adequately addressed. He felt it was premature to offer mitigation measures at this point in the process. He recommended that Director Orth's comment be the main comment in the letter, state that the Board agrees that the alternatives are reasonable, but not state that the District has an infiltration problem. Director Orth stated "So moved." Director Venturi seconded the motion, and a vote was taken which passed unanimously.

5. REPORT BACK ON POSSIBLE DISTRICT ENFORCEMENT ACTIONS TO BE TAKEN AGAINST THE OWNER OF 24330 & 24340 LILAC ROAD.

District Counsel Neary explained that there are several directions that the Board could go, and if one of the directions is to hold a public hearing, he advised the Board not to comment until the public hearing is held. This would ensure that Mr. Grishauber would have an opportunity to address the issues, and that the Board's decision would be based solely on the information presented at the public hearing. He provided a memorandum outlining the options available to the Board, 1) to hold a closed session to determine if the Board should initiate litigation, 2) set a public hearing for the next Board meeting, or 3) determine at the next Board meeting whether or not to establish a public hearing. He suggested that the Board hold off on a final decision, to see if the matter is pursued by the other agencies involved.

Director Venturi spoke in favor of alternative 3. Director Whitney agreed, and asked that a closed session be scheduled for the next Board meeting to discuss possible litigation. Director Orth suggested that the decision to schedule the closed session be made by the Board President and the General Manager prior to the next meeting.

Henry Grishauber, owner of the subject property, came forward to the podium. President Estabrook explained that the Board would not be talking about the specifics of the case. District Counsel recommended that the Board not respond to anything that Mr. Grishauber had to say.

Mr. Grishauber explained that he had started the work in 1993, but was forced to quit due to health problems. He stated that he was working periodically, especially to keep the erosion down. He outlined the efforts he had made, stating that only one time had the silt gone into the road. He had installed straw and a gate, however someone stole the gate as well as a chainsaw. He admitted that he dumped five yards of dirt across the road (ten half-loads) noting that there was dirt there to start with. He did this because he had been caught in a rainstorm and had to quit. He was concerned that the dirt was going to get back into the system, and couldn't go anyplace else with it. He stated that he had completely forgotten about the requirement for permits. He was currently working with the County and had gotten his plans passed. He had removed every bit of the dirt that was shown in the photographs, and intends to rock it, and eventually pave it. He was concerned about the five yards of dirt he put "over the bank," but that he looked at the dirt before he dumped it and it was "great." Also, the whole mountain caved in out there, but that dirt hasn't moved at all. He can remove it, or install straw to keep it there. He commented that he has been in the construction business for forty years, and has invested money in Willits. He has lived here before, and his family has lived here. In closing, he voiced appreciation for the help received from Bob Axt and the County.

No comments were made by the Board members.

6. ANNUAL REPORT ON RATES AND FEES FOR WATER, SEWER, FIRE, AND GENERAL FUND AND CONNECTION FEES.

Director Orth moved to schedule public hearings on rates and fees adjustments for June12, 2001 and June 26, 2001. The motion was seconded by Director Whitney.

Hearing concerns from President Estabrook about the rates as proposed, and the fact that the hearing would have to be re-noticed if the proposed rates were changed, Director Orth withdrew his motion. Director Whitney withdrew his second.

Director Whitney proposed increasing the Water Availability charge on developed parcels. District Counsel advised that the assessment is subject to the provisions of Proposition 218, and that a vote would be required to increase the charge. Director Whitney also proposed fees be established for use of the recreational facilities, such as the ball field and recreation grove, based on fees charged by the City of Willits.

Director Venturi spoke against raising water rates, as last year the Board raised rates for water and sewer and committed not raise those rates this year. He spoke in favor of discontinuing the ambulance service, and spoke in favor of trying to pass the fire tax increase in November. He agreed with the changes proposed for Administrative Charges.

Director Monteleone also spoke against increasing water and sewer rates.

Director Orth pointed out that increased energy rates and other costs justify rate increases based on changed conditions.

General Manager Chapman stressed that costs must be considered prior to setting rates. He commented that the 8% increase proposed would not be equal to the projected increase in costs. He urged the Board to have an open mind going into the process, and to consider the cumulative effect.

President Estabrook asked the General Manager to prepare three options for the Board to consider at their Budget Workshop scheduled for April 21st; Option One, no increase in water and sewer rates; Option Two, only a cost-of-living based on operational increases; and Option Three, rate increases as proposed. He pointed out the large deficit in the Golf Fund, and asked that it be addressed.

Director Whitney asked that serious discussion be held about leasing the entire golf course, and about the medical emergency response function of the Fire Department. He urged the Board to consider the alternatives if the Fire Tax were not increased.

Director Venturi asked that the General Manager also provide an option for golf course rates based on what it would take to break even.

President Estabrook asked for a rate comparison with the City of Willits.

Virginia Pohlson, of Brooktrails Drive, spoke in favor of adjusting rates when necessary based on costs, and urged the Board to be honest with the residents about the costs to provide fire services when approaching them for an increase in the tax. She stressed the need to continue the EMT program if the ambulance is discontinued, to maintain the interest of the volunteers. She pointed out that the Golf Course is a draw, and suggested golf course annuals be paid on a calendar year basis.

Director Venturi clarified that he is not advocating doing away with the EMT response program. He agreed with Ms. Pohlson about the golf course, and suggested annuals be sold at any time and be based on the date purchased.

Noting the time, Director Whitney moved to extend the meeting to 11:00 p.m. Director Venturi seconded, and the motion passed unanimously.

7. CONSIDERATION OF A RESOLUTION IN SUPPORT OF THE WILLITS CREEK SALMONID SPAWNING HABITAT RESTORATION PROJECT, AND AUTHORIZATION FOR THE GENERAL MANAGER TO SIGN ON BEHALF OF THE DISTRICT.

Director Orth moved to adopt Resolution No. 2001-4, a Resolution in Support of the Willits Creek Salmonid Spawning Habitat Restoration Project. The motion was seconded by Director Venturi.

Director Whitney commented that this work is a portion of a $180,000 restoration project. He suggested the District work with the Department of Fish and Game to devise a schedule to accomplish the work, and to move forward with additional funding opportunities. He pointed out that the success of this grant application will assist with future grant applications.

A vote on the motion was taken as follows:

AYES: Directors: Orth, Venturi, Monteleone, Estabrook, Whitney

NOES: Directors: None

ABSENT: Directors: None

Resolution No. 2001-4 Adopted

8. CONTINUED REVIEW OF FIRE ABATEMENT PROGRAM.

General Manager Chapman explained that the draft letters had been re-written based on comments from the Board and public.

Director Monteleone asked that the first two sentences of the letter to Spring Creek and Sylvandale be struck, and the letter start with "As most of you realize."

Director Whitney asked that owners of all large parcels west of Ridge Road also receive the letter to be sent to Spring Creek and Sylvandale. Regarding the Brooktrails Township letter, he asked that the first two sentences under Phase II, be relocated to the bottom of the letter. Addressing the Director of Emergency Services, Daryl Schoeppner, he asked for confirmation that the six inch grass height is preferred.

Mr. Schoeppner stated his opposition to raising the height requirement to six inches, as it doubles the fuel load. He recommended the height remain at three inches.

Director Whitney also offered several suggestions to the wording of the letters, for clarification, noting that the last two pages of the packet were not to be included in the mailing.

Mr. Schoeppner asked for clarification that the Fire Department would not be expected to inspect Sylvandale and Spring Creek properties. Board members confirmed that they did not intend to abate those areas.

Director Venturi made a motion that the changes discussed be made to the letters. The motion was seconded by Director Monteleone, who expressed her agreement with Director Whitney's suggestions. Director Orth thanked General Manager Chapman for listening to the Board's direction.

Marvin Dixon, owner of Marvin's Garden Tree Service, commented that the weather plays a role in the growing season for grass. He recommended extending the compliance date to August, as the grass would grow back if the compliance date were June 30th. After a brief discussion, Board members agreed to state that the compliance date will be determined by the Fire Department based on summer weather conditions.

A vote was taken on the motion currently on the floor, which passed unanimously.

9. CONTINUED REVIEW OF SITE DEVELOPMENT STANDARDS PACKET.

Deferred.

I. SPECIAL REPORTS - GENERAL MANAGER

i. Significant Correspondence received since last meeting:

ii. Personnel

iii. Finance

iv. Planning

v. Possible upcoming agenda items

vi. Other

J. PUBLIC COMMENTS

K. ADJOURNMENT

Director Orth moved to adjourn and President Estabrook declared the meeting of April 10, 2001 closed at 11:10 p.m.

MICHAEL V. CHAPMAN

Secretary to the Board of Directors

RICHARD ESTABROOK,

President