MINUTES

2. CONSIDERATION OF ORDINANCE NO. 121

After a brief review of the subject matter, Acting Chairman Orth opened the public hearing at 7:07 p.m.

David Paland, resident of Redwood City, CA, and owner of a Brooktrails home, voiced concern about water used for pressure washing homes, spoke in favor of the placement of a restrictor as a means of enforcement, and suggested that there be a provision granting relief to property owners from responsibility for leaks.

Hiedi Ahders, resident of Poppy Drive, raised concerns about public notification upon implementation of the staged conservation plan, enforcement, and funding for enforcement.

Stan Sullivan voiced concern about the cost of public notification.

Richard Estabrook, resident of Primrose Drive, took the podium. After a lengthy review of Articles 2 and 4, he asked that the Board delete all of Article 2, except for the wording under new construction. He also asked that the staged conservation plan outlined in Article 4 be well more well-defined and easier to understand, and that the provisions emphasize reduction based on volume rather than behavior, and include golf course restrictions. He also felt that the enforcement provisions should be strengthened, and that conservation could best be achieved by increasing usage charges.

Mr. Estabrook further suggested that a better trigger for the staged conservation plan would be a measurement tool and graph or table that relates water volume in the reservoir to gauge height. Once the reservoirs reached a certain depleted point, in terms of acre feet, the staged conservation plan would be effectuated. District Counsel Neary offered to take Mr. Estabrook's comments into consideration and provide a revised Ordinance for the Board's consideration at a future meeting.

Karen Silva, resident of Otter Place, asked for clarification of the terms of District Counsel Neary's agreement with the District. She also asked for an update on the funds available to the District through Proposition 50. Director Orth and General Manager Chapman answered her questions.

Patricia Cornell, resident of Robin Place, felt that the language in the Ordinance should be easier for the average person to read and understand.

Robert Terry, resident of Poppy Lane, suggested the that Conservation Plan distinctly address emergency and non-emergency situations.

John Civelli, of Buckeye Drive, commented on the value of common sense.

Hearing no other comments, Acting Chairman Orth closed the public hearing at 8:07 p.m.

Acting Chairman Orth spoke in favor of utilizing the tier structure as a part of the Stage 2 conservation measures.

3. HEARING ON FISCAL YEAR 2003/2004 BUDGET

General Manager Chapman explained to the audience that the size of the District's infrastructure and the density ratio of homes contributes to the amount each user has to pay to maintain the systems. Utilizing the overhead projector, he reviewed the fund balances of the various funds, after the transfers from the General Fund. He also reviewed an additional transfer proposed to the Fire Fund which was illustrated on a chart handed out to the public.

Acting Chairman Orth opened the public hearing at 8:30 p.m. General Manager Chapman answered questions from audience members Karen Silva, and Stan Sullivan regarding the recent repair to a fire engine. He also responded to Pro Shop Manager, Ron Runberg regarding the Recreation Fund budget. Bob Houtz, resident of Poppy Drive, and David Paland offered comments regarding the Fire Department.

Karen Silva questioned the need to increase the fire tax if the General Fund money can be used to cover the deficit. General Manager Chapman explained that without the help of the General Fund, the Fire Department is operating in the red, and without an increase in the fire tax, there would be no funds for replacement reserves for the purchase of future capital expenditures such as fire trucks. Ms. Silva also asked for information regarding salaries paid to District employees. General Manager Chapman reviewed the salary and benefit figures on the overhead projector.

Moving on, General Manager Chapman reviewed the major expenditures in the budget, including bulk supplies, and contract operations. He also reviewed a list of 11 major capital projects which may be undertaken over the next three fiscal years.

David Paland and Karen Silva offered comments regarding salaries paid to the District employees.

Hearing no other comments, Acting Chairman Orth closed the public hearing at 8:47 p.m.
General Manager Chapman pointed out that in his revised budget he would be increasing the fund transfer from the General Fund to the Fire Fund by $14,000 to cover the repair to the fire engine. No objections were raised by the Board members.

4. PROPOSED RATES AND FEES ADJUSTMENTS

Acting Chairman Orth opened the public hearing at 8:57 p.m.

General Manager Chapman explained that government projects and services are often compelled by regulators, and that the rates and fees are structured to meet costs and set aside reserves. With the aid of the overhead projector he reviewed the proposed rates and fees, pointing out the necessity to capture costs through the base rates. He explained the justification for the increases to the water and sewer base rates, pointing out the increased amount which would have to be paid to the City of Willits for sewer. He also explained that no increases were proposed to architectural review fees, or golf dailies, although small increases were proposed for golf annuals for adults.

David Paland voiced concern that the proposal to charge the base rates to absentee homeowners who ask to have the water turned off was a violation of Proposition 218.

General Manager Chapman explained the difference between assessments, which are subject to Proposition 218, and user fees, which are not.

Director Orth pointed out that Mr. Paland had presented a letter protesting the charge, and offered to read it into the record. Mr. Paland stated that reading it into the record would not be necessary.

Director Orth stressed the importance of each metered parcel paying its fair share of maintaining the system.

District Counsel Neary pointed out that at the March 1, 2003 meeting, the Board was made aware that District staff was not charging the monthly base rates to property owners who had their water turned off, although that was never authorized by the Board. At the March 11, 2003 the Board clarified its existing policy that each metered parcel is subject to the base rate charge. In the wake of having a water moratorium imposed, it came to the Board's attention that certain properties could retain a water meter where it perhaps was not needed.

Mr. Paland read excerpts from a letter notifying him that he would be subject to the charge, and from the minutes of March 11, 2003. He reiterated his position that the charge was a violation of Proposition 218.

Bob Houtz stressed the need for all homeowners to share the cost of the system.

John Civelli suggested basing the sewer charge on water usage, as opposed to charging a flat base rate, and stated opposition to the amount of the proposed sewer base rate increase.

Director Pohlson explained that the District's contractual obligation to the City of Willits for sewer is based on its share of capacity of the treatment plant, which is why the base rate is necessary.

In response to Hiedi Adhers, District Counsel Neary explained the basis of the 37.69% capacity percentage. General Manager Chapman explained for her how the increase in the sewer rate was calculated, and briefly reviewed the capital improvements planned for the treatment plant which were necessitated by regulatory order. She suggested researching available grants to help with the costs, and voiced her strong disapproval of the amount of the increase.

Sarah (no last name given), resident of Birch Road, felt it was unreasonable to pay for capacity that is not being utilized.

Flip Alpern, resident of Perch Drive, voiced his disapproval of the General Manager's comment in the staff report that any change in the rates would cause delay due to the public hearing noticing requirements. He also voiced opposition to the proportion of the increase, raising concerns about residents on fixed income. He reviewed historical data going back ten years which indicated a 108.5% increase in the water base rate, and a 279% increase in the sewer base rate. General Manager Chapman explained that it was the Board of Director's fiduciary responsibility to protect the infrastructure assets of the community.

District Counsel Neary pointed out that the rates did not increase for many years during the 1980s. In response to Sarah of Birch Road, General Manager Chapman explained that the sewer rates in the City of Willits have historically been much higher than Brooktrails.
Bob Houtz made note of the high cost of sewer pumps. Stan Sullivan suggested transferring General Fund surplus into the Sewer Fund.

Hearing no other comments, Acting Chairman Orth closed the public hearing at 10:10 p.m.

Director Pohlson encouraged the members of the public to attend the meeting when the audit is discussed, to gain a better understanding of the District's financial position. General Manager Chapman explained the concept behind the reserve schedule, noting that all departments are behind schedule for replacements and upgrades.

5. CONSIDERATION OF ORDINANCE NO. 120

General Manager Chapman briefly reviewed the proposed ordinance.

Acting Chairman Orth opened the public hearing at 10:16 p.m. Hearing no comments, he closed the public hearing at 10:17 p.m.

Director Horrick made a motion to waive further reading and adopt Ordinance No. 120, an Ordinance prescribing a Sewer Standby Charge for Fiscal Year 2003-2004 and repealing Ordinance No. 104. The motion was seconded by Director Pohlson, and the vote was taken as follows:

AYES: Directors: Pohlson, Horrick, Orth
NOES: Directors: None
ABSENT Directors: Venturi, Skezas
Ordinance No. 120 Adopted.

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

7. CONSIDERATION OF A RESOLUTION SETTING THE ANNUAL APPROPRIATIONS LIMIT PURSUANT TO ARTICLE 13A OF THE STATE CONSTITUTION

8. ANNUAL REVIEW OF DISTRICT INVESTMENT POLICY AND INDEBTEDNESS POLICY

Director Pohlson moved to approve items 6, 7, and 8 on the consent calendar, approving Resolution No. 2003-16, setting the Annual Appropriations Limit, Resolution No. 2003-17, a Resolution Updating the Investment Policy For Brooktrails Township Community Services District, and Resolution No. 2003-18, a Resolution Updating the Indebtedness Policy for Brooktrails Township Community Services District. The motion was seconded by Director Horrick, and the vote was taken as follows:


AYES: Directors: Pohlson, Horrick, Orth
NOES: Directors: None
ABSENT Directors: Venturi, Skezas
Resolution No. 2003-16, 2003-17, and 2003-18 Adopted.

9. APPROVAL OF A ONE YEAR AGREEMENT WITH EMPLOYEES EFFECTIVE JULY 1, 2003
Deferred.

10. CONSIDERATION OF A DRAFT LETTER TO CONGRESSMAN MIKE THOMPSON, AND SENATORS BOXER AND FEINSTEIN URGING THEM TO SUPPORT MENDOCINO COUNTY'S FEDERAL LEGISLATIVE PROGRAM REQUESTING FUNDING FOR VARIOUS LOCAL PROJECTS

After the General Manager's brief review of the projects, Director Pohlson made a motion to approve the draft letter, as presented. The motion was seconded by Director Horrick.

John Civelli spoke in favor of a round-about at the Highway 20 and 101 intersection.

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