The Board of Directors of Brooktrails Township Community Services District met in regular session on December 9, 2003 at 7:08 p.m. in Brooktrails Community Center.
A. PLEDGE OF ALLEGIANCE
B. ROLL CALL
Roll call showed the following Directors present: Pohlson, Horrick, Orth and Skezas. Also present were Director-Elect Mary Ziady, General Manager Chapman and District Counsel Neary. Director Venturi was absent.
REPORT ON CLOSED SESSION
District Counsel Neary reported that the Board had met with counsel regarding potential litigation. No action was taken on the matter. The Board also added to the closed session agenda, real estate negotiations concerning the easement into the Greenbelt off of Blue Lake Lane and gave instruction to the real estate negotiators. The Board also received an update from counsel regarding a potential litigation matter. They approved an easement agreement with Hopkins, which was announced several meetings ago. The Board also consulted with the General Manager regarding personnel.
C. ADDITIONS/ ADJUSTMENTS TO THE AGENDA
Director Orth made a motion to add two items to the agenda which had been omitted, "Report on Election Results" and "Seating of New Members." The motion was seconded by Director Pohlson and passed unanimously by the members present.
REPORT ON ELECTION RESULTS
President Skezas read aloud the election results, indicating the election of Ed Horrick and Mary Ziady to the Board.
SEATING OF NEW MEMBERS
Mary Ziady came forward and was seated at the Director's table.
D. BOARD REORGANIZATION
President Skezas nominated Director Orth for President. There being no other nominations, President Skezas closed the nominations for President and Director Orth's nomination was unanimously approved.
Director Horrick nominated Director Pohlson for Vice President. There being no other nominations, President Orth closed the nominations for Vice President and Director Pohlson's nomination was unanimously approved.
E. COMMITTEE APPOINTMENTS
President Orth suggested that the Directors retain their present committee assignments, with Director Ziady taking Director Venturi's place. He suggested that formal action be deferred to the first meeting in January. General Manager Chapman commented that there was a new committee, the Specific Plan Advisory Committee.
F. MINUTES OF PREVIOUS MEETINGS
November 11, 2003
Director Skezas, moved to approve the minutes of November 11, 2003 as written. The motion was seconded by Director Horrick and passed unanimously.
G. SPECIAL PRESENTATION
RESOLUTION OF APPRECIATION TO OUTGOING DIRECTOR, RICH VENTURI
President Orth accepted the resolution on behalf of Director Venturi who was unable to attend the meeting.
RESOLUTION OF APPRECIATION TO SUPERINTENDENT OF UTILITIES, WENDELL WILSON
RESOLUTION OF APPRECIATION TO FINANCE ASSISTANT, PATRICIA WILSON
President Orth expressed his appreciation to Wendell Wilson for his 21 years of service to the District, and to Patricia Wilson for her 25 years of service to the District. The Wilsons came forward to receive plaques and resolutions of appreciation.
General Manager Chapman read aloud the resolutions of appreciation to the Wilsons, and thanked them individually, for their help, citing examples of assistance they provided to him.
A large group of people were present in the audience who attended to show their support.
FRANK McMICHAEL, EXECUTIVE DIRECTOR OF LAFCO
Mr. McMichael came forward to address concerns which were raised by the Board of Directors on previous occasions, primarily concerning services and financial issues.
He provided a general overview of the structure and purpose of LAFCO (Local Agency Formation Commission), noting that they are a legislative agency working as an arm of the State Legislature to provide for the formation and expansion of District boundaries. He reviewed the list of current membership, which included members of the County Board of Supervisors, Mayors of Ft. Bragg and Willits, and Directors from two Special District Boards.
He explained that recent State legislation requires that LAFCO also provide oversight to all Special Districts and cities, by means of a municipal service review of the operations of the agencies, including management efficiency, financial matters, rates, and government structure. This legislation went into effect, even though the Commissioners spoke against the proposal, due to the cost and effect to both LAFCO and the agencies reviewed.
In addition, LAFCO is required to act as a regional planning agency to assure that growth is planned and controlled, to protect open space, agricultural and resource lands, and to assure efficient extension of government services.
Mr. McMichael distributed copies of the current LAFCO budget. He explained that the budget is paid 1/3 by the County, 1/3 by the Cities, and 1/3 by the Special Districts. The allocation to Brooktrails is computed by a prescribed formula based upon the income of the District. The recent increase in the amount of fees was due to the fact that the hospital districts operating at a deficit are excluded.
He reviewed several line items in the budget, including County services and State mandated costs. He voiced concern about the high cost of service reviews, and offered suggestions as to how costs can be controlled. He reported that the Commission provided a resolution of support for an initiative for the November 2004 ballot, that would stop the imposition of unfunded mandates, and would prohibit the taking away of local tax money. He strongly urged the Board and community to support the initiative.
Director Pohlson offered suggestions regarding LAFCO website. She voiced her support for the proposed initiative.
Director Skezas pointed out that the initiative did not address existing mandates, it only prohibits further mandates.
Director Zaidy pointed out that the County looks toward Brooktrails to provide future housing, and voiced concern about costs to the District for growth.
Mr. McMichael answered questions from Claudia Reed, reporter from the Willits News, regarding the need for housing and its obligation to protect resources and open space.
President Orth thanked Mr. McMichael for his informative presentation.
H. PUBLIC HEARING
2. RATE INCREASES PROPOSED BY SOLID WASTES OF WILLITS, INC.
General Manager Chapman briefly reviewed the effect of the proposal on rates and franchise fees.
Director Orth opened the public hearing at 8:10 p.m. Hearing no comments, he invited Jerry Ward, CEO of Solid Wastes of Willits, to come to the podium.
Mr. Ward explained that the COLA increase is in accord with the District's franchise agreement with his company. President Orth commented that very few complaints about the service are received. Mr. Ward credited his drivers for their service. President Orth closed the public hearing at 8:13 p.m.
Director Skezas made a motion to adopt Resolution No. 2003-44, a resolution approving rate increases for garbage service in the District. The motion was seconded by Director Ziady, and the vote was taken as follows:
AYES: Directors: Ziady, Horrick, Skkezas, Pohlson, and Orth
NOES: Directors: None
ABSENT: Directors: None
Resolution 2003-44 Adopted.
I. PUBLIC COMMENTS - None
J. CONSENT CALENDAR
2. REVIEW OF ACCOUNTS PAYABLE REPORT AND AUTHORIZATION TO ISSUE CHECKS
President Orth commented that the review of Accounts Payable included checks issued on November 21st, as there was only one meeting in November and December. General Manager Chapman explained that checks would also be issued on December 19th, and approved at the first meeting in January.
Director Horrick moved to approve the listing of Accounts Payable. The motion was seconded by Director Skezas and passed unanimously. Director Horrick moved to approve the President's signature on the checks to be paid on December 19th. The motion was seconded by Director Skezas and passed unanimously.
K. ACTION AGENDA
4. APPEAL BY PAM ST. MARTIN, RESIDENT OF PERCH ROAD, TO THE GENERAL MANAGER'S DECISION NOT TO REFUND CHARGES FOR A BACKFLOW DEVICE
General Manager Chapman explained that Ms. St. Martin had asked for a refund of charges for a back flow device going back nine years. He stated the basis for his denial was because a letter had been sent in 1994 advising all persons with back flow devices that they would be charged a monthly fee, and constructive notice was not received from Ms. St. Martin until July of 2003 that she should not be subject to the charge.
Ms. St. Martin stated that the letter which was sent to her in 1994 advising her of the charge looked like a generic letter sent to all water customers. She thought that it was something out of her control, as it was not addressed to her personally, and did not state the reason for the device. She also pointed out that the charge is not broken out on her bill, but simply added to the base rate. She provided an example of a back flow device which can be purchased at a hardware store for $4.95.
Director Horrick voiced agreement with the General Manager's position.
Ms. St. Martin reiterated her concern about the notification letter. President Orth agreed that the letter could have been more informative, and less bureaucratic.
Director Skezas also supported the General Manager's decision, as the letter directed customers to call the District office if they had questions.
Director Pohlson pointed out that if the device is in place the District is obligated, by law, to inspect it annually. She asked that the device be removed from Ms. St. Martin's line if no longer needed. She also spoke in support of the General Manager's position, as it had been inspected and monitored every year, as required.
Director Skezas made a motion to deny the appeal and the request for a refund. The motion was seconded by Director Horrick.
Comments were received from Robert Terry, resident of Poppy Lane.
A vote was taken on the motion which passed unanimously.
Director Skezas asked for a report on the number of devices which are inspected every year, and asked that all customers being charged be notified, clearly, of the alternatives so that the device and the monthly charge can be removed.
President Orth asked that a future agenda item be scheduled to consider amending the utilities code to allow for retrofit, to eliminate the need for the devices.
5. APPEAL BY DOROTHY RAMMING TO THE GENERAL MANAGER'S DECISION NOT TO ALLOW AN ADJUSTMENT TO THE TIER RATE CHARGES ON HER WATER BILL
General Manager Chapman explained that Ms. Ramming requested an adjustment to her September water bill for more equitable distribution of the water tier charges. The basis for her request was that there are two dwellings served by a single water meter, which creates more usage billed at the higher tier rates.
He pointed out that to allow an adjustment to the September water bill, would require an adjustment to every subsequent bill. He also suggested that the Board recognize the interconnected dwellings and approve a waiver to the Utilities Code.
As an alternative to adjusting the tiers, he suggested that Ms. Ramming either place a private meter between the dwellings, or install a separate District meter on each house which would require payment of the second connection fee and the separate billing of the monthly water base rate charge, plus usage.
Director Zaidy pointed out that although Ms. Ramming is now paying higher usage rates because of the tier system, she did not pay a second connection fee or monthly base rate other customers have had to pay.
Ms. Ramming explained that when she built the second home for her parents, she intended to pay the $600 additional connection fee, and have a second meter installed. However, the prior General Manager told her she did not need to, and gave her permission to hook the second home to the existing water meter.
She voiced concern that, because of the recently adopted Water Conservation Ordinance, her allocation during a water shortage emergency would be calculated on the basis of one SFR, and excess usage could be billed at five times the normal rate. She explained that she and her parents would not be able to afford to pay a water bill of that amount. She also voiced concern about other multiple family dwellings in the District that have only one water meter.
She provided copies of an analysis she prepared of two recent water bills which indicated that Brooktrails loses in the winter by not billing two base rates, but gains in the summer by billing usage at the higher tier rate. She disagreed with the General Manager's concern about additional staff time to split her bill every month, and about setting precedent. She stated that she would like to have a second meter, but could not afford the second connection fee at the current rate.
Ms. Ramming's father pointed out that to install a second meter now would require digging a trench of approximately 1,100 feet to the house, which would be cost prohibitive, and that in 1992 when they built the house they had an open trench.
A break was called to change the tape.
BREAK at 8:54 p.m. - RECONVENE at 8:55 p.m.
General Manager Chapman voiced concern about programming the District's software to accommodate special billing rates for one customer.
Ms. Ramming confirmed for Director Skezas that she was not unhappy with the present billing system, and that her concern had to do with the water shortage emergency allocation. Director Skezas suggested that no action be taken at this time, and that the matter be addressed in the event of a declared water shortage emergency.
Director Pohlson made a motion to waive Sections 2-401 and 2-402 of Ordinance No. 76 for the Ramming property. The motion was seconded by Director Skezas, and passed unanimously.
Director Skezas made a motion to deny Ms. Ramming's request for an adjustment to her water bill. The motion was seconded by Director Horrick, and passed unanimously.
Director Horrick suggested that the Board formally address the multiple-family dwelling issue.
Bob Whitney, resident of Iris Terrace, provided examples of other large parcels in the District with District water available, and multiple dwellings on one parcel. He also voiced concern about high tier rate charges for apartment buildings that are being billed through one meter.
Director Pohlson pointed out that such multiple-family dwellings are paying only one base rate for water.
6. DISCUSSION OF GOLF MAINTENANCE PROPOSAL BY RON RUNBERG
Director Pohlson left the table due to a potential conflict of interest, as her husband was employed by the District as the Assistant Park Superintendent.
Ron Runberg, Pro Shop Operator, came forward. He reviewed the material provided with the staff report, noting that due to the economy, golf, in general peaked in 2001. Utilizing the overhead projector, he reviewed a chart of industry trends from PGA Magazine which indicated that the decline is not a localized problem. He also reviewed a five-year breakdown of revenues and play at Brooktrails.
Mr. Runberg reviewed the proposed budget for the current fiscal year, expressing doubt that the projected level of revenues would be reached. He proposed that the golf course maintenance be combined with the pro shop management, under his direction. He noted that currently, the only way the District can reduce expenses is to cut maintenance hours, and as conditions on the course decline, less people play, resulting in fewer revenues. He next reviewed his proposed budget, line by line, indicating how he could reduce expenses and take better care of the course, by providing maintenance himself. He stressed that he was not proposing to lease the course, but to take over the maintenance, which would mean no loss of control to the District.
Director Skezas suggested that Mr. Runberg provide a modified contract for the Board's consideration at the next meeting. He also asked for more information regarding the General Manager's suggestion that the course close down during the winter. He spoke in favor of giving Mr. Runberg's proposal further consideration.
In response to Director Horrick's question, Mr. Runberg stated that he was thinking of at least a ten-year agreement.
Director Ziady asked that all of the issues raised in the General Manager's staff report be addressed, especially the water issue.
President Orth wanted to ensure that park lands and trails are maintained, and that should the golf course close in the winter, it would be open for walking.
Director Horrick asked Mr. Runberg how he would provide for maintenance if he were incapacitated. Mr. Runberg outlined the programs and resources available to him as a PGA member.
Bob Whitney, of Iris Terrace, and Jack Wade, resident of Clover Court, voiced support for Mr. Runberg's proposal. Wayne Osborne, resident of Poppy Drive, offered comments regarding walkers.
Director Pohlson returned to the table.
7. RECEIVE GENERAL MANAGER'S RESPONSE TO AUDIT RECOMMENDATIONS
General Manager Chapman reviewed his responses to the Auditor's report of material weaknesses. He briefly commented on the improvement in cash overdrafts in the Fire Fund and Golf Fund.
As to the Auditor's comment regarding the District $3.5 million dollar obligation for the sewage treatment plant, he quoted District Counsel Neary's previous comment that the District has an "easement interest" which could be described as an asset, a position supported by loan officers from USDA Rural Development and Rural Community Assistance Corporation (RCAC.)
General Manager Chapman answered Director Ziady's concerns regarding the procedures manual. She stated her agreement with the auditors comments regarding personnel files being locked. President Orth concurred.
Director Skezas made a motion to approve the General Manager's response to the audit recommendations, and asked that he follow up on the "vested beneficiary interest" in the sewage treatment plant issue. District Counsel Neary offered to provide an opinion on the matter to the next auditor. The motion was seconded by Director Horrick, and passed unanimously.
L. SPECIAL REPORTS - GENERAL MANAGER
General Manager Chapman reported that the first well had been drilled, successfully, although it was too early to determine quality or quantity of water. He spoke highly of the performance of the District's utility staff during the process.
M. PUBLIC COMMENTS
Director Pohlson provided copies of a report from the Tax Collector's office regarding the distribution of property taxes. She questioned why Brooktrails Fire Department does not receive money from property taxes. District Counsel Neary provided information regarding the Proposition 13 formula for distribution of taxes.
Director Skezas thanked his fellow Board members for their support of him as Board President for the previous two years.
N. ADJOURNMENT
Director Skezas moved to adjourn and President Orth declared the meeting of December 9, 2003 closed at 10:05 p.m.
CHARLES A. ORTH
President
MICHAEL V. CHAPMAN
Secretary to the Board of Directors
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