MINUTES

The Board of Directors of Brooktrails Township Community Services District met in regular session on June 11, 2002 at 7:00 p.m. in Brooktrails Community Center.

A. PLEDGE OF ALLEGIANCE

B. ROLL CALL
Roll call showed the following Directors present: Pohlson, Horrick, Venturi, Orth and Skezas. Also present were General Manager Chapman and District Counsel Neary.

C. ADDITIONS/ ADJUSTMENTS TO THE AGENDA
None

D. MINUTES OF PREVIOUS MEETINGS

May 28, 2002

Director Pohlson moved to approve the minutes of May 28, 2002 as written.

President Skezas asked that the Additions / Adjustments to the Agenda' section clearly show that he stated three times he was not available for any meetings the week of June 3rd.

Director Pohlson amended her motion to reflect the change.

The motion was seconded by Director Orth, and the vote was taken as follows:
AYES: Directors: Pohlson, Horrick, Orth, Skezas
NOES Directors: None
ABSENT: Directors: None
ABSTAIN: Directors: Venturi
Motion Carried.

June 3, 2002

Director Orth moved to approve the minutes of June 3, 2002 as written, seconded by Director Horrick. A vote on the motion was taken as follows:
AYES: Directors: Pohlson, Horrick, Venturi, Orth
NOES Directors: None
ABSENT: Directors: None
ABSTAIN: Directors: Skezas
Motion Carried.

President Skezas read a lengthy written statement wherein he accused the General Manager, District Counsel Neary, and his fellow Board members of violating the Brown Act provisions concerning noticing of the special meeting which was held June 3rd to discuss the PERS amendment. He asked that the action taken on June 3, 2002 be declared null and void.

Director Pohlson pointed out that on March 26, 2002 the Board, by consensus, requested that the item be placed on the agenda of May 14th. However, it was removed because it was not listed on the previous agenda under "section j". She asked that Ordinance No. 118, and the President's interpretation, be reviewed, and that the accusations made by President Skezas in his written statement be addressed.

E. SPECIAL PRESENTATION

WILLITS BYPASS REPORT FROM HAL WAGENET

Willits resident and candidate for Supervisor, Hal Wagenet, reported that the Board had 60 days to comment on the CalTrans Environmental Impact Report (EIR) on the Willits bypass. He provided the historical perspective of the CalTrans planning process to date. Using a local topographical map, he stressed the need to restore Willits Creek to its original configuration as a part of the mitigation measures of the project.

He reported that the California Transportation Commission had postponed the funding for the Brooktrails second access road for one year. Therefore, the formal EIR on the Wild Oat Canyon road would be postponed for a year, as well. He stated that it is now up to the County Department of Transportation to advance the idea so that Mendocino Council of Governments (MCOG) can request the money for the project to go forward.

He summarized the information in the CalTrans EIR and urged the Board to make its wishes known to CalTrans, the County of Mendocino, MCOG and the California Transportation Commission by the August 10th deadline. He asked that the Board schedule an agenda item for its next meeting to confirm its support for the "Elsie Wild Oat Canyon Bypass" and that the progress of the County Department of Transportation be checked upon regularly.

Director Orth asked that consideration of a letter to CalTrans be placed on the agenda for June 25th, requesting a 90 day extension to the EIR comment period. President Skezas asked that a separate item be added to consider letters to the County Department of Transportation and to MCOG to restore the planning funds.

F. PUBLIC HEARING

2. PROPOSED RATES AND FEES ADJUSTMENTS FOR WATER AND SEWER RATES AND FEES; AND GOLF COURSE GREEN FEES AND ANNUALS

General Manager welcomed the members of the public who came to comment on the rates and the budget. He explained that the rate increases were needed in the water and sewer funds to address infrastructure problems, noting the extensive size of the subdivision relative to the number of users of the systems.

He outlined the improvements proposed during the upcoming year to the water and sewer systems, recounting the need to build reserves to complete the necessary projects. He outlined the costs anticipated for sewer treatment expenses and improvements to the City of Willits' facility.

Moving on to the proposed golf rate increases, he explained that the goal is to make the golf course self-supporting. As to the fire department, he reviewed cuts made to the expenses so that they better parallel the revenues. He reported that no money was available to build reserves for capital items in the fire department.

President Skezas opened the public hearing at 7:37 p.m.

Bill Edmondson, of Primrose Drive, welcomed Ed Horrick back to the Board. As a single user he was concerned that the combined water and sewer increases totaled about 9% of his bill, or $50 per year. He asked that the Board, through fiscal management, cut the increase down to something that people on fixed incomes could find more manageable.

Maria Bates, of Blue Lake Road, spoke against the rate increases, pointing out that the loan from the sewer fund to the golf course had been extended. She felt that recreation should not be the District's first priority.

Kurt Ackerman, of Clover Drive, suggested that the golf course take out a loan from a bank to repay the sewer department.

Kathleen Symons, of Hawk Drive, spoke against the rate increases.

Jack Bothwell, of Buckeye Road, felt the rates were reasonable and that they should have been increased sooner. He spoke favorably about the loan from the sewer department to the golf course. He pointed out that the water and sewer systems are getting old, and he encouraged the public to think ahead.

Hearing no other comments, President Skezas closed the public hearing at 7:45 p.m.

Director Orth stressed the need to maintain the systems, meet state and federal regulations, and to continue the pursuit of the District's Water Rights application. He stated his support of the proposed increases.

Director Pohlson pointed out the increased costs of operating the systems, and the need to put money aside for infrastructure.

President Skezas emphasized that the Board had not voted on the budget or the rates and fees, and that he had proposed cuts in the budget which amounted to about three-quarters of the proposed rate increases. He proposed discussing the matter in more detail at the next Board meeting.

3. HEARING ON FISCAL YEAR 2002-2003 BUDGET

General Manager Chapman again outlined the proposed projects in the budget and the associated costs. He reported that the District would be seeking approximately $500,000 in financing, spread out over a period of forty years, to accomplish the upgrades to the water treatment plant. Additionally, the state is requiring that a study be done by a hydrologist, at a cost of approximately $25,000, to determine water availability and appropriate connection fees.

President Skezas opened the public hearing at 7:55 p.m.

Maria Bates came forward to question why upgrades were needed to the water treatment plant when our water quality reports indicate that our water is compliant. General Manager Chapman explained that state and federal standards are getting more difficult to meet. Superintendent of Utilities, Wendell Wilson, explained the water purification process, noting that the new standards would be very difficult for the District to meet with its existing equipment. He confirmed that extensions would probably be granted as long as the District shows that it is working towards the goals.

Director Orth pointed out that a lot of the water pipes in the District are steel and will soon need to be replaced. In response to Ms. Bates, Director Orth explained that the hydrologist's study would determine how much the watershed is actually producing. This will assist the Department of Fish and Game, when considering the District's application to raise Lake Emily, determine how much water in the reservoir will be allocated for domestic use, and how much will be reserved for the stream.

Hearing no other comments, President Skezas closed the public hearing at 8:03 p.m.

G. PUBLIC COMMENTS

Alicia Walter, of Poppy Drive, urged Director Pohlson, and the ad-hoc committee, to put personal feelings about the Fire Department aside, and work toward the good of Brooktrails. She spoke against annexation with Little Lake Fire District.

Director Pohlson urged Ms. Walter to attend the next Fire Department Board Advisory Committee meeting.
Robert Terry, of Poppy Lane, spoke in favor of raising the dam. He asked that a portable toilet be provided for the southwest side of the Dam.

H. CONSENT CALENDAR

Director Orth asked that item 5 be moved to action agenda for discussion.

4. REVIEW OF ACCOUNTS PAYABLE REPORT AND AUTHORIZATION TO ISSUE CHECKS

6. CONSIDERATION OF A RESOLUTION SETTING THE ANNUAL APPROPRIATIONS LIMIT

7. ANNUAL REVIEW OF DISTRICT INVESTMENT POLICY AND INDEBTEDNESS POLICY

Director Orth moved to approve the accounts payable report and to authorize issuance of checks. The motion was seconded by Director Venturi and passed unanimously.

Director Venturi moved to approved Resolution No. 2002-12, a Resolution Setting the Annual Appropriations Limit. The motion was seconded by Director Orth, and the vote was taken as follows:
AYES: Directors: Pohlson, Horrick, Venturi, Orth, Skezas
NOES Directors: None
ABSENT: Directors: None
Resolution No. 2002-12 Adopted.

Director Orth moved to approved Resolution No. 2002-13, a Resolution Updating the Investment Policy for Brooktrails Township Community Services District. The motion was seconded by Director Venturi, and the vote was taken as follows:
AYES: Directors: Pohlson, Horrick, Venturi, Orth, Skezas
NOES Directors: None
ABSENT: Directors: None
Resolution No. 2002-13 Adopted.

Director Orth moved to approved Resolution No. 2002-14, a Resolution Updating the Indebtedness Policy for Brooktrails Township Community Services District. The motion was seconded by Director Venturi, and the vote was taken as follows:
AYES: Directors: Pohlson, Horrick, Venturi, Orth, Skezas
NOES Directors: None
ABSENT: Directors: None
Resolution No. 2002-14 Adopted.

I. ACTION AGENDA

5. DISCUSSION OF GREEN COMMITTEE RECOMMENDATIONS FOR GOLF COURSE TEE #9

Director Orth asked General Manager Chapman to clarify the cost of the project and provide for the Board the CEQA documents for the project. General Manager Chapman explained that the costs would be minimal, and would be charged to the Golf Fund.

8. DISCUSSION OF INSTALLING WATER METERS ON THE LONG-TERM CABINS AND MOTEL AT THE BROOKTRAILS LODGE

General Manager Chapman stated that most issues had been resolved, with the exception of the location of the water meters which would be placed at each long-term unit. He stated his position that the meters should be located at the street, as directed by the Utilities Code.

President Skezas invited Dr. Gitlin and his attorney, Ginevra Chandler, to address the Board.

Ms. Chandler came forward. She pointed out that eight units had been recognized by the County as long-term, and were therefore not a change in use. She asked that the connection fees for those eight units be waived. She voiced concern about putting the meters at the street, as it would be considerably more expensive for Dr. Gitlin to do so, and pointed out that Dr. Gitlin has agreed to maintain the pipes in the event of a leak. She asked that the connection fees and costs be financed over time, and that the extended-stay motel issue be addressed when the County makes its land use determination. She confirmed that the motel will stay short-term until that time.

She criticized District staff for what she felt was omitted information from the County Department of Environmental Health. Dr. Gitlin came forward and stated that he believed General Manager Chapman's water usage figures were overstated in the calculation of connection fees, based on correspondence from John Osborne with the Department of Environmental Health.

General Manager Chapman stated that he had talked with Mr. Osborne twice concerning the water usage estimate, and stands behind his calculation. He pointed out that the District has offered Dr. Gitlin a $169,000 compromise, and called attention to Ms. Chandler's letter dated April 29, 2002, which stated Dr. Gitlin's agreement to pay the $19,764 charge. He reiterated his intention to assist Dr. Gitlin with financing, and questioned why the issues were being raised again.

Director Venturi raised a point of order, as the agenda item was for discussion of the installation of water meters, not to continue negotiations between Dr. Gitlin and the General Manager. He suggested that the Board address the agenda item, or defer the matter until the parties are closer to an agreement.

Director Orth voiced agreement with the General Manager's connection fee calculation, and asked that the discussion of meters move forward. He voiced his support for the use of some internal telemetric meters, and street meters for all units along the street. He asked that, should the property be reconfigured in the future, the telemetric meter agreement no longer apply, and the property be required to conform with the Utilities Code. He recommended that the District's responsibility for maintenance of the water lines end at the street, and that there be a fee for annual inspection of each telemetric meter installed.

With reference to the map included with the staff report as "Attachment N", Director Venturi asked that street meters be placed for units 8, 11, and 14, but agreed to telemetric meters at cabins 2, 3 and 5. He asked that the maintenance issue be resolved by the legal counsels for both parties.

Dr. Gitlin voiced concern about existing underground electric, cable, telephone lines, and drains on the property which would make it difficult to place street meters on cabins 11 and 14. Director Venturi asked Dr. Gitlin if it would be difficult to place meters at the street for cabins 11 and 14 because he had already done work there without anticipating putting water meters on the street. Dr. Gitlin stated that when he did the internal work, there was no discussion about having to separately meter any of the units, and claimed that the previous General Manager told him he would not have to do so.

Director Pohlson pointed out that District Counsel Neary advised Dr. Gitlin a year and a half ago to come before the Board with an application for water service, which would have determined where the meters were going to be. She pointed out that the use permit application to the County requests a change of use for 32 units, for a total of 40 long term units. She pointed out that the 8 "grandfathered" units do not have water meters, were never addressed by the District, and are therefore considered new hook-ups. She stated that she believed it was his intention, based upon his application to the County, that all of the units at the Lodge be used as long-term quarters, and that the restaurant will not be open to the public.

She asked that the Board enact a new entitlement measurement of water use for the Lodge property only, based upon the County code for the size of the dwelling, a legal non-conforming residence or efficiency unit. She stated that, for her approval, Dr. Gitlin would have to comply with the District's Utilities Code regarding placement of the meters at the curb or within the easement, and that the Lodge must have a new designation of water measurement allowance for efficiency dwelling units. She asked that the Board defer action until after the County Use Permit hearing scheduled for July 18, 2002.

In response to Director Pohlson's comments, Dr. Gitlin confirmed that he would pay the connection fees and asked the Board to resolve the water meter issue, noting that he too had made compromises. He stated his willingness to sign any necessary document agreeing that the water lines would be maintained. He asked that the Board approve the meter plan as presented in "Attachment N."

Noting that Dr. Gitlin agreed to maintain the water lines, and recognizing the problems placing street meters on cabins 8, 11 and 14, Director Orth made a motion to accept the meter map as presented, direct staff to come to a "Zone B" agreement to maintain water lines, also have an inspection, and that the other elements of the agreement be finalized after the County makes its final determination. The motion was seconded by President Skezas.

Director Horrick voiced agreement with Director Venturi's proposal concerning street meters for cabins 8, 11 and 14.

Superintendent of Utilities, Wendell Wilson, explained that if there were a water leak at cabin 2, 3, or 5 the water would have to be shut off to three units for repair. The same would be true for cabins 8, 11, and 14, as they share a main line.

A break was called to change the tape.

BREAK at 8:57 p.m. - RECONVENE at 9:02 p.m.

In response to Mr. Wilson's concerns, Dr. Gitlin explained that valves had been installed in the main lines to isolate leaks. After conferring with Mr. Wilson, Director Pohlson suggested that the meters be placed on the private road on the lodge property, which would conform to section 2-206 and 2-503 of the Utilities Code. General Manager Chapman, Mr. Wilson, Ms. Chandler and Dr. Gitlin conferred regarding the problems associated with cabins 8, 11 and 14, and the concept of placing street meters on the private road behind the cabins. General Manager Chapman announced that the agreement reached with Dr. Gitlin and his counsel was to have telemetric meters at cabins 2, 3, 5 and14, regular meters on the private road for cabins 8 and 11, and all other meters on the street as depicted on Attachment N. Director Orth amended his motion to approve the agreement as stated by General Manager Chapman. President Skezas amended his second, and a vote was taken which was unanimous in favor of the motion.

9. CONTINUED DISCUSSION OF A POLICY GOVERNING THE SALE OF SURPLUS PROPERTY

General Manager Chapman briefly reviewed the current policy concerning the sale of surplus property, and reviewed Ordinance No. 109 regarding lots donated to the District.

District Counsel Neary explained that Part D of Ordinance No. 109 provides for regular review of donated lots to determine their most beneficial use. He emphasized that some parcels are have been traditionally held as Greenbelt, some are held for specific purposes such as future tank sites, and some are dedicated to the District and held in a proprietary capacity. As to the last group, he felt that on a case-by-case basis those properties could be declared as surplus to achieve any policy the District might choose, be it generation of revenue, dedication to the lot reduction program or any other purpose.

Director Orth commented that as a part of the discussion of the lot reduction process, it was the intention of the Board to ensure that a policy was put into place to utilize lot sales to generate funds to achieve a self-funding lot merger and reduction program.

In response to District Counsel Neary, Director Orth confirmed that he was in favor of establishing policy dedicating the revenues from donated lots declared as surplus property to that specific purpose. This would ensure people who donate lots that the property is going to a valid public purpose, which is to help the community achieve the kind of community the Specific Plan lays out.

District Counsel Neary suggested taking out Part D, and revising Part B of Ordinance No. 109 by removing section (i) "utilization of the parcel for District facilities", and removing section (iii) "utilization by incorporation of the parcel into the Brooktrails Redwood Park", and adding section (ii) "to generate revenues for the District's lot reduction programs." Director Orth asked that an evaluation process be developed, so that parcels are reviewed when they are accepted to determine if they are trail heads or needed for other purposes, and designated into a category. District Counsel Neary suggested adding a paragraph to each resolution of acceptance providing the characteristics of each lot and recommending a category. Director Orth asked for a full review of all lots accepted to date.

Director Pohlson asked that consideration be given to the possibility of adding a potential water connection by selling a previously donated property.

10. APPROVAL OF A ONE YEAR AGREEMENT WITH EMPLOYEES EFFECTIVE JULY 1, 2002

Director Pohlson left the table due to a conflict of interest, as her husband is an employee of the District.
General Manager Chapman reviewed the changes made to the previous contract.
President Skezas moved to adopt Resolution No. 2002-15, A Resolution Approving a One-Year Agreement with District Employees. The motion was seconded by Director Venturi and the vote was taken as follows:
AYES: Directors: Horrick, Venturi, Orth, Skezas
NOES Directors: None
ABSENT: Directors: None
ABSTAIN: Directors: Pohlson
Resolution No. 2002-15 Adopted.

11. CONSIDERATION OF A RESOLUTION ACCEPTING ONE DONATED LOT FROM LUCIA BIANCHI

Director Orth moved approval of Resolution No. 2002-16, a Resolution Accepting Grant Deed of Real Property. The motion was seconded by Director Horrick, and the vote was taken as follows:
AYES: Directors: Pohlson, Horrick, Orth, Skezas
NOES Directors: Venturi
ABSENT: Directors: None
Resolution No. 2002-16 Adopted.

12. CONSIDERATION OF A RESOLUTION ACCEPTING ONE DONATED LOT FROM WILLIAM AND MARGERY WEIR
Director Orth moved approval of Resolution No. 2002-17, a Resolution Accepting Grant Deed of Real Property. The motion was seconded by Director Horrick, and the vote was taken as follows:
AYES: Directors: Pohlson, Horrick, Orth, Skezas
NOES Directors: Venturi
ABSENT: Directors: None
Resolution No. 2002-17 Adopted.

J. SPECIAL REPORTS - GENERAL MANAGER

i. Significant Correspondence received since last meeting:

The Board received notice of public hearing on the Willits Bypass EIR.

iii. Finance

No questions were raised regarding the report of warrants.

v. Proposed upcoming agenda items June 25, 2002

The Board reviewed the proposed agenda items for June 25, 2002. In response to Director Venturi, General Manager Chapman explained that the agenda item concerning the upgrading of the Fire Chief would apply to the selection process. Director Pohlson voiced concern about President Skezas' interpretation of Ordinance No. 118. President Skezas suggested it be discussed on June 25th, as it was listed as an action agenda item on the list.

vi. Other

General Manager Chapman reported that the ambulance was posted for sale on the internet for $14,000.

Director Venturi reported on a recent mountain lion sighting on Poppy Drive.

The Board received the minutes of the Safety Committee Meeting of March 12, 2002.

K. PUBLIC COMMENTS

Director Orth reported that the District had received the Drinking Water Adequacy Assessment for the Ukiah Valley, Mendocino County, California. District Counsel Neary provided a report on the upcoming hearing.

Bob Terry reported that BPOA had received a copy of the EIR on the Willits bypass.

L. ADJOURNMENT

Director Orth moved to adjourn and President Skezas declared the meeting of June 11, 2002 closed at 9:53 p.m.


MICHAEL V. CHAPMAN
Secretary to the Board of Directors


GEORGE SKEZAS,
President