SPECIAL MINUTES

1. REVIEW OF ACCOUNTS PAYABLE REPORT AND AUTHORIZATION TO ISSUE CHECKS
No claims were presented for payment.

2. REPORT FROM GENERAL MANAGER ON MEETING WITH DEPARTMENT OF HEALTH, DRINKING WATER DIVISION

General Manager Chapman explained that he had met with Bruce Burton, Engineer and Janice Oakley, Field Inspector of the Department of Health Services (DHS) on February 27, 2003, regarding the 2001 inspection of the District's water system, and the February 2003 T.M. Herman and Associates report. On February 28, 2003 the DHS issued a compliance order stating that the District shall not increase its supply service from its existing 1,451 connections. He reported that Mr. Burton also voiced concern that the 206 gallons per day average consumption used in the report may increase. He reported that the compliance order directs the District to develop a work plan prior to June 1, 2003 demonstrating how it will address the issues.

He explained the process to amend the permit to allow those applicants who had their house plans approved by the District Architect to connect, and noted that in the future there will no longer be a "ceiling", but rather the District will have to show increased capacity prior to adding new connections.

He then read the compliance order aloud. District Counsel Neary pointed out that the conclusion of the compliance order was based on the amount of water flowing into the reservoirs, as opposed to the holding capacity. After a brief discussion, Board members asked that the term "source capacity" be more clearly defined by DHS.

Director Pohlson asked for clarification of the number of applications for design review that had been approved by the District, but had not paid connection fees, and the number of meters that exist on empty lots. She suggested approaching the owners of the empty lots about selling their hook-up rights, and asked District Counsel Neary to provide an opinion on the matter. She also asked if installing the flashboards at Lake Emily earlier would effect the compliance order.

General Manager Chapman reported that the Division of Safety of Dams had denied the District's request to install the flashboards prior to April 1st, and that such a ruling would be made on a year-to-year basis, based on the weather prediction for March.

Director Pohlson voiced concern about the amount of money lost in availability charges when meters are installed on a vacant lot. Director Orth suggested developing a policy to charge the base rate to the owner after the meter is installed.

Anita Turcotte, resident of Deer Place and owner of a vacant parcel with a meter, voiced concern about paying the monthly water base rate on a vacant parcel with a meter.

Director Pohlson outlined the connection allocation procedure for Claudia Reed of the Willits News.

Director Venturi asked that staff begin investigation of the possibility of developing wells. District Counsel Neary reported that such an investigation was done as a part of the EIR for the Willits Creek Reservoir. He explained the regulations governing drilling in the alluvial area near a creek.

District Counsel Neary suggested contacting the firm that prepared the EIR for information on instream flow data which may not have been considered in Mr. Herman's report. He cited examples of contradicting information from the two sets of data. He pointed out that in 1993 Mark Vogel, P.E., prepared a report which justified the DHS raising the permit to 2,000 connections. He also noted that a public hearing would need to be scheduled to execute the compliance order.

Audience member Richard Estabrook, resident of Primrose Drive and former Board member, suggested utilizing the data from the District's flow meter on Willits Creek. General Manager Chapman reported that the meter was not functioning reliably.

General Manager Chapman clarified the allocation process for audience member David Willoughby.

Claudia Reed suggested a disclosure be sent to the local Realtors and property owners to inform them of the compliance order.

Audience member Randy Eads, resident of Clover Drive and former Board member, recommended justifying the original numbers, and questioned the feasibility of developing wells. General Manger Chapman confirmed for Director Horrick that the lake capacity data in the report had been reviewed by Mark Vogel, Engineer, but not the supply data which came from a metering station in Outlet Creek.

Audience member, Karl Davidek, employee of USGS, offered comments regarding streamflow metering devices in the area.

Discussion ensued regarding a study which was done in 1995 identifying 13 potential locations for wells.

Director Orth recommending reviewing the District's agreement with the Department of Fish and Game regarding the amount of water released into the creek from the lake.

In response to Anita Turcotte, Director Pohlson explained that dredging the lake would raise the number of connections which could be served in a dry year from 770 to approximately 1,300, and that additional source would be needed to increase that number.

A break was called to change the tape.

BREAK at 10:30 a.m. - RECONVENE at 10:40 a.m.

General Manager Chapman summarized the steps that would be taken in response to the compliance order, including additional engineering studies and placement of metering stations in Willits Creek. He provided a review of the funds spent on recent projects. Director Horrick voiced concern about the cost of additional independent studies. Director Orth asked that Mark Vogel be retained to review the supply data.

Richard Estabrook provided information on the data available from the metering station on Willits Creek. Karl Davidek provided information on services offered through USGS to monitor metering stations.

As requested by audience member John Shadek, information regarding applications in process was reviewed and corrections noted.

Copies of the 1995 study on wells were provided for the Board's review. District Counsel Neary confirmed that the 13 sites identified in the report were outside the alluvial area.

District Counsel Neary provided guidance on the public hearing process required by Water Code §350, and questioned whether the compliance order was self-executing. General Manager Chapman stated his intention to comply with the directives of DHS.

The District's design review process and allocation procedure were outlined for audience member Lauran Yonan

Director Venturi asked that a copy of the compliance order be sent to the County Department of Planning and Building.

3. 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.)

4. REVIEW OF BROWN ACT LIMITATIONS

General Manager Chapman reviewed provisions regarding open meetings, collective concurrence, ad hoc committees, noticing requirements, and closed session items. He also reviewed new information received from County Counsel, Peter Klein. Director Venturi asked that a closed session be scheduled to discuss security of the water system, and suggested inviting a member of the Sheriff's office to attend.

President Skezas reminded his fellow board members that items marked "confidential" are to be kept confidential until released by the Board.

5. REVIEW POWERS OF THE DISTRICT AND OTHER LIMITATIONS

General Manager Chapman reviewed a chart outlining the powers granted to BTCSD.

Director Orth updated the Board on recent changes to LAFCO's authority regarding granting additional powers to the District.

6. ANNUAL REVIEW OF BOARD POLICIES, PROCEDURES AND RELATIONSHIPS

General Manager Chapman reviewed the section regarding Board member's request for statements included in the minutes. He also reviewed the section regarding correspondence received by the District and his authority to review mail to Directors marked "confidential."

District Counsel Neary confirmed that the General Manager is authorized to open all mail sent to Directors at the official address of the District, to ensure that the he is aware of the issues. He added that confidential mail could be sent to the Directors at their home address.

District Counsel Neary provided clarification regarding correspondence with other agencies. He suggested policy be developed prohibiting release of reports prior to Board review.

Director Pohlson asked for a closed session regarding anticipated litigation as a result of the water moratorium.