SPECIAL MINUTES

A. PLEDGE OF ALLEGIANCE

B. ROLL CALL

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

C. ADDITIONS/ ADJUSTMENTS TO THE AGENDA

Director Whitney asked for time for a brief discussion of the current status of the Brooktrails Lodge property. Board members agreed to add it as agenda item number ten. Also, as suggested by Director Whitney, the Board allocated a certain amount of time to each agenda item.

D. PUBLIC COMMENTS

None

E. ACTION AGENDA

1. DEVELOPMENT OF GOALS AND OBJECTIVES FOR UP-COMING YEAR

The Board reviewed a chart of Goals and Objectives developed during previous planning sessions, and made additions and deletions. (See attached chart: Additions and changes in italics.)

Director Whitney asked for a quarterly review of progress on the items in the chart, and suggested that agenda items be scheduled periodically by category. Director Orth commented that the budget will determine how many of the goals and objectives can be accomplished. General Manager Chapman agreed, and suggested they be reviewed as a part of the budget process.

2. ANNUAL REVIEW OF BOARD POLICIES, PROCEDURES AND RELATIONSHIPS (ORDINANCE NO. 93)

District Counsel Neary reported that the Attorney General's office had provided an opinion concluding that e-mail correspondence between Board members which falls under the category of deliberation is prohibited under the Brown Act. He suggested that draft proposed legislation be provided to establish policy on the use of new technology, such as websites, chat rooms, etc., and that it be presented to the First Amendment Project for consideration. He offered to provide the proposed legislation for the Board's consideration in the Spring.

Director Monteleone asked for clarification of the Attorney General=s opinion, citing an e-mail sent concerning the up-coming newsletter that was sent to some Board members as well as other interested parties. District Counsel Neary commented that it would have to be determined whether it could be construed as a "serial meeting." Director Orth suggested a policy on newsletters be adopted by the Board.

District Counsel Neary suggested, as a means of streamlining Board meetings, that some agenda items simply be opened for discussion, as opposed to going down the line for comments from each Director, noting that a Director is not supposed to speak twice until all other members have had a chance. He also suggested that votes on motions be made by stating Ayes and Nos, using roll call votes only for Resolutions and Ordinances. Director Whitney suggested a prop be provided to each Board member to indicate to the Presiding Officer that he/she wishes to speak on an item.

Director Orth voiced concern about conflict of interests with regards to committee assignments, and cautioned other Board members not to put a Director in a position that may result in a conflict of interest.

3. DISCUSSION OF ASSET MANAGEMENT PLAN FOR USE OF DONATED LOTS

Noting that land is an asset, Director Whitney suggested that it would be logical to utilize funds from the sale of donated lots to raise funds for capital needs.

Director Orth stressed the need to develop a strategic plan, cautioning fellow Board members about dealing with assets that are easily convertible to cash. He felt the priorities should be acquiring tax sale lots and facilitating lot mergers, and suggested annually advertising a list of lots available for merger. He also suggested that the list of lots be evaluated as a part of each five-year review of the Specific Plan.

President Estabrook suggested hiring a third party to develop a formula to be used to determine the market value of the lots.

Director Whitney made a motion that the Board develop a policy, to be adopted by Resolution as a future agenda item, to review the list of lots owned by the District and not allocated for a specific use, and that the list of lots be sorted into categories; 1) areas that are developed with sewer service, 2) areas that are developed without sewer service, and 3) areas without development or sewer service. After a review of where these donated lots are located, target property owners adjacent to them to see if they are interested in purchasing them, and any money received from this process be designated to acquire County owned Brooktrails lots, such as tax sale lots, to clean those lots off of the books. Director Monteleone seconded the motion.

President Estabrook spoke against selling lots for any reason other than to purchase other lots to retire. Director Monteleone agreed.

Director Orth stated his preference that such a policy be discussed at a regular meeting of the Board, as opposed to a planning meeting, and that management prepare a list of those lots in developed areas where there are opportunities for sale, and present it to the Board for discussion at a later date. General Manager Chapman acknowledged that he was currently working on the Budget, and asked the Board to allocate to him the necessary time to complete it.

President Estabrook suggested an agenda item be scheduled for August.

Director Whitney expressed frustration that the issue had been deferred for so many years, and amended his motion to add that it be accomplished in an appropriate time frame. Director Monteleone amended her second. A vote was taken on the motion as follows:

AYES: Directors: Monteleone, Whitney, Estabrook

NOES: Directors: Orth

ABSENT: Directors: Venturi

Motion Carried.

A break was called for lunch.

4. CONTINUED DISCUSSION OF SITE DEVELOPMENT STANDARDS PACKET

Director Whitney suggested changing the name of the packet to "Development Review Process" to be consistent with the attached Mendocino County Inland Zoning Code. He suggested that references to the "District Architect" be changed to "Brooktrails Township," and that a statement be included that availability of water, sewer, and fire services is determined by Brooktrails Township.

Director Orth suggested a separate packet be developed for Spring Creek and Sylvandale, as those areas are not subject to Design Review.

Director Whitney commented that several places within the document need clarification. He asked that a paragraph be added on the second page, after reference to encroachment permits from the County Department of Transportation, concerning septic system approval by the Department of Environmental Health. Noting that the first paragraph under "Fire Department Regulations" state that plans for property not subject to Architectural Review should be submitted to the Fire Department, he asked that all plans be submitted to the District office. He also asked that the pages be numbered for easier reference.

Director Orth suggested a pre-approval checklist be developed determining water and sewer availability prior to architectural approval.

General Manager Chapman asked that the second sentence under "New Water and Sewer Service" concerning copies of the County building permit and encroachment permit be struck.

Director Whitney asked that the section on connection fees be eliminated, and that a statement be substituted directing questions on current connection fees to the General Manager.

Director Orth suggested removing reference to fees from the document, and attaching a separate page listing all fees, including annual assessments, which could be updated as necessary.

Director Whitney cautioned the other Board members about promoting a requirement for a survey. District Counsel Neary suggested providing a list of local engineers who can mark the corners of the parcel for a lesser cost.

Director Orth felt a survey should be required if the pins could not be located. He noted that the location of the pins must be marked in order for the County inspector to ensure the foundation is in compliance with the setback requirements.

After a brief discussion, it was decided that all survey pins must be located and flagged prior to architectural approval, and that the property owner can flag the County markers, if found.

Director Monteleone suggested that signs be posted at various locations within the District facilities stating that the District is in no way affiliated with Brooktrails Real Estate, and advising people interested in purchasing property to obtain a copy of the Design Review guidelines. She also asked that some type of document holder be purchased for the District Office to display the packets.

Director Orth asked that each real estate agent in the area be contacted on an annual basis to obtain copies of any disclosure statements provided to potential purchasers of Brooktrails property.

Director Monteleone asked the General Manager to verify that the Disclosure Statement developed by the Board was sent as directed.

General Manager Chapman suggested attending the annual meeting of the local Board of Realtors to pass out information and keep them advised of Design Review Requirements.

President Estabrook suggested a property review of previous activity, such as lot mergers, be done as a part of the standard approval process.

Director Whitney asked that "by a licensed surveyor" be struck from item one of page two.

President Estabrook asked that all Directors submit their suggestions in writing to the General Manager, and that the matter be discussed at a regular meeting in the near future.

5. DISCUSSION OF GRADING PERMIT ISSUES AND ARCHITECTURAL REVIEW PROCESS

President Estabrook asked that a policy be adopted, by resolution or ordinance, prohibiting grading prior to approval of plans and issuance of a County building permit.

Calling attention to Section 20.232.035 of the Inland Zoning Code, Director Whitney read aloud the section pertaining to grading, which requires a comprehensive site plan.

District Counsel Neary suggested sending a letter to the District Architect advising him not to waive the provisions of Section 20.232.035 without approval from the Board.

Board members reviewed the approval process as outlined in Section 20.232.045. District Counsel Neary recommended that all approved plans go directly to the General Manager for review, as the General Manager authorizes posting of the Notice of Approval, and can call attention to anything questionable within the ten-day time frame to appeal.

Discussion ensued concerning the approval stamp used by the District Architect. Board members agreed that the stamp should be redesigned, to indicate the four-step approval process.

During a discussion of the Request for Action form, the question arose as to whether the document was exempt from the public records act. District Counsel Neary offered to research the issue. Director Monteleone asked that a document holder be purchased for the District Office to display the forms, and that the President announce their availability at the beginning of each Board meeting.

6. DISCUSSION OF SECOND INSPECTION PRIOR TO POURING FOUNDATION

Noting that the County is the responsible agency for foundation inspection, Director Orth suggested Brooktrails develop a sign-off sheet for use by the County Building Inspector, certifying that the foundation is in compliance with the District's setback guidelines.

Director Whitney proposed charging additional fees for Brooktrails to inspect construction in progress.

Director Monteleone reminded fellow Board members that it was District Architect Axt who suggested a second inspection prior to pouring the foundation, as a means to stop setback violations.

She suggested a licensed engineer be retained to conduct the foundation inspection, prior to the County inspection, when called by the District, the cost of which would be covered by the property owner.

Director Orth suggested, as a part of the inspection, the access and preparation for installing a manufactured home be checked.

President Estabrook suggested an ordinance might be needed to accomplish the new review process. Director Whitney agreed, and asked that the General Manager work with District Counsel Neary on the ordinance.

In response to concerns raised by General Manager Chapman, the Board outlined the four-step approval process as follows:

1) District Utilities and Services Availability Approval

2) Plan Approval by District Architect

3) Site Approval by District Engineer (prior to pouring of concrete)

4) Final Inspection and Approval by District Architect and

Final Approval by General Manager

A break was called to change the tape.

Board Members agreed to move items (Budget and Lodge) ahead to accommodate Director Monteleone.

8. FIVE-MONTH REPORT FROM GENERAL MANAGER - BUDGET

General Manager Chapman spoke highly of his experiences to date working with the Board, District Counsel and staff. He commented that the biggest challenge he faces is time management, and noted that many of his decisions are based on availability of funds.

He outlined his priorities for his first year as; 1) Success of the fire abatement program, 2) Restructuring of the budget and the budget calendar, 3) Focusing on those issues of most importance to all residents of the District.

A brief discussion ensued regarding the need to re-establish public access to the trail from Brooktrails to the City of Willits. District Counsel Neary updated the Board on the status of the CNRC easement acquisition.

In closing, General Manager Chapman urged the Board to prioritize, and expend the limited funds and staff time on those issues that will benefit the most residents.

Director Whitney asked the General Manager, as a part of the budget process, to explore ways to reduce the District's electricity and telephone expense.

10. REVIEW OF CURRENT STATUS OF BROOKTRAILS LODGE PROPERTY

Director Whitney reported on a recent meeting between himself, Dr. Gitlin, Director Monteleone, and General Manager Chapman. He also summarized a conversation with Julie Price, Planner, who commented that the Planning Department was also having problems understanding Dr. Gitlin's intentions. Ms. Price informed him that the use permit application had been suspended pending submission of a plot plan. She confirmed that Dale Hawley had inspected the property to determine the legal classification of several of the units, and had written a letter outlining the findings of that inspection. She agreed to forward copies to the General Manager.

Director Whitney also reported that Dr. Gitlin had approached the BPOA for endorsement of his proposal, but had not yet provided a detailed description to them.

Director Monteleone left the meeting at 4:05 p.m.

7. CONTINUED REVIEW OF SPECIFIC PLAN ANNUAL REPORT

General Manager Chapman provided his annual report to the Board.

Director Orth asked that the District's recent application for Proposition 13 grant funds for development of a watershed management plan be included in Chapter 6, paragraph A. He also asked that a comment be included in paragraph C that the District would like to obtain a hand-held GPS device and digital camera to develop an inventory of critical habitat areas.

Director Whitney expressed concern about the lack of a vegetation-clearing plan for the CCC crews to follow. He suggested having the outside conservation group address the issue as a part of the development of the watershed management plan. Also, he asked that copies of the report be sent to the Ray Hall from Planning and Building, Kristi Furman, Clerk of the Board of Supervisors, and Mark Tolbert of CDF, but not to Ted Adams of EIP.

General Manager Chapman reported that he was scheduling another tabletop drill for the middle of May. Director Orth reported that NEST would also be conducting a tabletop drill in March.

Director Orth suggested that Ray Hall also be kept up to date on the second inspection issue, the second access road, and the Lodge property.

Director Whitney suggested Stan Townsend with the Department of Transportation be asked to keep the District updated on their road improvement and maintenance schedule for Brooktrails.

9. DISCUSSION OF CONNECTION FEES

Citing a lack of revenues sources from property taxes and sales taxes, President Estabrook questioned whether the Special District was the appropriate form of government for Brooktrails. He suggested the Board consider substantially increasing the connection fees to maintain sufficient revenues.

General Manager Chapman suggested he and President Estabrook meet to review the reserves analysis, which would assist in determining the appropriate fees. Director Orth voiced concern about increasing the fees after the recent increases in the water and sewer rates, and suggested the increase be done gradually.

President Estabrook provided a copy of District Counsel Neary's opinion on connection fees written in August of 2000.

Director Whitney asked that copies be made for all Directors and that the General Manager incorporate it into the development of the budget. He pointed out that there are two issues to resolve, the fact that current connection fees are lower than other areas, and that there needs to be different fees for different types of development.

Director Orth commented that a certain percentage of connection fees charged must meet "affordable housing" guidelines, and suggested that issue be researched.

Director Whitney asked for written documentation of where the connection fees are, if they have been spent, if liabilities exist between funds, and if there is a separate trust or savings account.

General Manager Chapman explained that he would be providing a Fund Balance Sheet as a part of the budget, which should answer some of the questions.

Director Whitney voiced concern that the connection fees, historically, have been utilized to meet operating expenses. He wanted to assure that if they were increased, they would be segregated, as mandated by Proposition 218. He also suggested forgiving the debt on the books from the Sewer Fund to the Golf Fund, and considering the expenditure as an investment in District property.

General Manager Chapman pointed out that the forecast would be a critical factor of the budget. He recommended doing away with quarterly budget adjustments, any deviations being brought to the attention of the Finance Committee, and only significant expenditures being brought before the Board.

District Counsel Neary provided a brief history of the planning process that occurred under the guidance of the previous General Manager.

President Estabrook pointed out that just before the development of the Specific Plan, there was a huge increase in development, resulting in a large amount of cash from connection fees, and a false sense of security. The funds that should have been set aside for infrastructure were spent on the planning process. The cost of growth was not evident until several years later.

Director Orth suggested, rather than accumulating the cash in the bank, a spending policy be developed to fund capital expenditures as money becomes available.

President Estabrook commented that he would not be opposed to consulting a third party to assist with the setting of connection fees. Director Orth suggested the cost be investigated and included in the next fiscal year budget.

F. SPECIAL REPORTS - GENERAL MANAGER

None

G. PUBLIC COMMENTS

None

H. ADJOURNMENT

Director Orth moved to adjourn and President Estabrook declared the meeting of February 24, 2001 closed at 5:45 p.m.

MICHAEL V. CHAPMAN

Secretary to the Board of Directors

RICHARD ESTABROOK,

President