MINUTES

The Board of Directors of Brooktrails Township Community Services District met in regular session on February 24, 2004 at 7:00 p.m. in Brooktrails Community Center.

A. PLEDGE OF ALLEGIANCE

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

REPORT ON CLOSED SESSION
The Board met with Counsel concerning one potential item of litigation and gave advice to counsel and conducted a personnel negotiation session.

C. ADDITIONS/ ADJUSTMENTS TO THE AGENDA
None, other than the addition of additional documents to previously posted agenda items regarding appointments to the Finance Committee and the General Manager's Mid-year Review Memorandum.

D. MINUTES OF PREVIOUS MEETINGS

1. President Orth requested amendments to the minutes of February 10, 2004, as follows:

Page 3426, Paragraph13, line 8: Change "filing of tax returns" to "filing of required documents"; Page 3426, Paragraph 14, line 9: Change "number comparisons" to "fiscal estimate for comparative purposes".

Director Horrick moved to accept the minutes of February 10, 2004 as so amended. Director Skezas seconded and the motion was carried unanimously.

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

President Orth questioned the purpose of the payment to Bank of America, amount $3,492.53, referenced as "travel expenses/cable". Mr. Chapman clarified that this is a credit card and "travel expense" charges represented the Fire Chief and his assistant's January 2004 trip to San Diego, which included training and fire truck research. Mr. Chapman also stated that the "cable" expense was related to water system maintenance. Director Horrick moved to approve the report and authorize issuance of checks. The motion was seconded by Director Skezas and passed unanimously.

3. REVIEW "MID-YEAR FINANCIAL REVIEW" OF GENERAL MANAGER

General Manager Chapman presented and reviewed charts and figures related to his "Mid-Year Review" memorandum of 2/18/04. He advised that the report was the first step of the budgeting process for the pending year (FY 2004-05). It included a current financial review for the last seven months of FY 2003-04, and a preliminary year-end forecast for FY 2003-04. While Mr. Chapman discussed various values in several different funds, he pinpointed his discussion primarily to the relationship among the General Fund, Golf Fund, and Fire Fund.

The Golf Fund lost about $40,000 in income last year (FY 2002-03), and it appears that it will lose another $39,000 this year (FY 2003-04). Over the next month while Mr. Chapman creates the new budget, he will carefully consider a repayment plan between the General Fund to the Golf Fund, and then a fund transfer from the Golf Fund to the Water Fund. Any plan will have to approved by the Board.

Director Pohlson made a comment regarding depreciation and its effect on golf. Mr. Chapman agreed that depreciation, since it is a non-cash item, does tend to make marginal numbers look worse.

The discussion turned to the Fire Department. Because of the anticipated fire truck purchase, Mr. Chapman focused on data pertinent to that purchase. The turnkey price on the truck is approximately $284,000. Another item to consider was a proposal for the purchase of a "jaws of life," estimated to cost approximately $20,000. Of the resulting $304,000 purchase, the FEMA grant covers $225,000 and any excess balance would have to be covered by the General Fund. After doing the math, Mr. Chapman anticipated having a year-end balance of approximately $146,000. This was because the General Fund is, once again, gaining. He stated that the contemplated purchases could be made without entirely depleting the General Fund. He clarified that the issue of whether to buy the truck and "jaws of life" would be considered at the next Board meeting.

4. CONSIDERATION OF POTENTIAL FIRE TRUCK PURCHASE.

Fire Chief Daryl Schoeppner discussed the intent and procedure followed in obtaining the FEMA grant and in evaluating different types of trucks available. He clarified that the truck would be custom-configured, and presented slides with specifics of various truck features. He showed a video on Ferrara trucks. He advised that three competitive bids from fire truck firms were solicited and two were received.

Discussing the "jaws of life" purchase, Chief Schoeppner commented on the issue of compatibility with the models used by other fire departments. This device has other uses besides vehicle extraction, such as the lifting of trees. The manufacturer will provide complete training.

President Orth solicited the Directors' comments and questions. Director Ziady commented that the 4-wheel drive capability was good and the ability for this truck to provide "mutual aid" to surrounding areas was also important. Directors Horrick and Skezas affirmed the desirability of the chosen truck. Director Pohlson said that while the new truck is a good idea, she would like to hold off on a purchase at this time. President Orth stated he was in favor of selling the old truck and replacing it.

President Orth clarified that the Board needs to discuss and give direction on two items: the issue of the old truck, and the "jaws of life" purchase. Chief Schoeppner responded that he would like to keep the old truck, but the new truck comes with no equipment on it. Therefore he will have to transfer the equipment from the old truck to the new truck. Director Skezas commented that the decision whether or not to sell the old truck does not need to be made until the next fiscal year. President Orth asked for consensus that the Board will direct that the old truck be stripped and the equipment transferred to the new truck.

Director Pohlson raised the question of the old truck being kept in working condition at the airport. A brief discussion ensued about the issue of hangar fees and the potential benefit of having this older truck at the airport. President Orth suggested that the old truck be set aside pending the decision of whether to re-equip it and where to house it, citing that decision as a possible fire tax issue.

Director Pohlson stated she would rather put the $20,000 into the old truck than into the "jaws of life" purchase. She felt it might be possible to obtain jaws equipment through other avenues. President Orth then asked for the Directors' specific comments about the "jaws of life" purchase. Directors Ziady, Horrick and Skezas said they were in favor of the purchase. Director Skezas clarified that the particular "jaws of life" model proposed was not the full-featured model, which would cost about $60,000. President Orth stated that he is in favor of buying the "jaws of life" now because he felt it might be valuable in earthquake rescue as well

President Orth expressed the Board's gratitude to Chief Schoeppner and the Fire Department for their work in bringing the truck purchase forward. Chief Schoeppner clarified that the "jaws" must be purchased by the end of April 2004 in order to get the agreed price and their purchase is independent of the truck purchase.

President Orth solicited comments and questions from the audience. Bob Turner asked questions about some safety features of the new truck and Chief Schoeppner responded. Mr. Turner also asked how the truck would be repaired if it broke down and what this would cost. Chief Schoeppner said it comes with an extensive warranty and the complete details were read as to warranty terms for various components; repairs would be done by a firm in Cloverdale. A brief discussion ensued about the procedure for truck construction and pick-up. Bob Turner also asked what the depreciation schedule would be; Mr. Chapman advised it would be depreciated over 20 years.

5. APPOINTMENT TO THE BROOKTRAILS FINANCE COMMITTEE

Director Skezas questioned whether the length of appointment to the Finance Committee could be extended to July 1, 2005. President Orth asked for discussion. Director Pohlson asked if the Finance Committee could be used for the comparative fiscal analysis required for the Golf Course proposal.

It was moved to appoint Bill Jack, Chuck Harden and Chris Brown to the Finance Committee for terms ending 07/01/05.

6. CONSIDERATION OF A RESOLUTION AMENDING RESOLUTION NO. 2004-2 TO AMEND SECTION 5.14 (ADMINISTRATIVE EMPLOYEES) OF THE PERSONNEL RULES AND REGULATIONS.

Director Skezas moved to adopt the resolution and Director Horrick seconded; the motion was passed unanimously.

7. CONSIDERATION OF A RESOLUTION AMENDING RESOLUTION NO. 2003-22 TO AMEND SECTION 2 REGARDING CLASSIFICATION OF EMPLOYEES.

Director Skezas moved to adopt the resolution and Director Pohlson seconded; the motion was passed unanimously.