MINUTES

1. May 24, 2005 – Director Horrick moved to approve the minutes; Director Skezas seconded and the motion carried.

2. Public Hearing on Fiscal Year 2005-06 Budget. General Manager Chapman briefed the audience on the series of meetings to date addressing the new budget. He pointed out recent revisions to the forecast and the inclusion of a $5,000.00 transfer to the Recreation Department as requested by the Board. He presented transparencies detailing the changes to the draft budget, the major change being in the Water Department because the expected transfers from other departments to repay loans back to the Water Enterprise Fund have been postponed, per the Board's decision of April 12, 2005. Reserves had also been reduced from $50,000.00 to $40,000.00. Even with the minor adjustments, he said, the presently proposed budget would work. President Orth opened the public hearing at 7:10 p.m. and requested public comment. Ralph Alexander asked for a copy of the budget, and General Manager Chapman said he had expected some to be available at the meeting, but since there were none, he would send him a copy. Mr. Alexander asked about the 3% water and sewer increase; President Orth responded that this was approved into the draft budget and represented an inflation increase. Mr. Chapman requested Mr. Alexander to stop by the office to discuss the budget; Mr. Alexander said he would. There being no other comment, the public hearing was closed at 7:15 p.m.

3. Public Hearing on Rates & Fees for Fiscal Year 2005-06. General Manager Chapman announced this was the first of two public hearings on rates and fees. He pointed out that water base rate will increase from $27.10 to $28.10; usage tier rates and connection fees remain the same. Sewer base rate will increase from $28.43 to $29.43. Lot merger costs to the applicant will increase to $175.00 for the first two lots. Photocopying will increase from $.25/page to $1.00/page. A returned check fee will be instituted of $13.00. Various golf fees have increased. President Orth opened the public hearing at 7:20 p.m. Bob Terry questioned the annual charge for backflow devices. Director Ziady commented that this fee would remain the same at $3.24/month. President Orth then clarified for Mr. Terry that the total annual inspection fee is broken into monthly installments. President Orth reiterated that the proposed water/sewer base rate increases reflected an inflation increase, but that larger increases are expected in the future due to the City of Willits sewer improvements project. There was no additional public input. The public hearing was closed at 7:21 p.m.

4. Review of Accounts Payable Report and authorization to issue checks. Director Skezas moved to approve payment of the accounts payable report; Director Horrick seconded; the motion carried.

5. Consideration of human resources consultant Gary Wilkening for job description/salary schedule review. General Manager Chapman said he had clarified the scope of work proposed for this contract, as the Board had had questioned it at the previous discussion. Director Ziady moved to authorize the General Manager to hire Gary Wilkening to perform a job description/compensation survey for a fee not to exceed $3,000.00. The motion carried unanimously.

6. Consideration of resolution establishing Ohl Grove rental fees, procedures and contract documents. General Manager Chapman noted this process began over a year ago, and that final input had been received from District Counsel as to the alcohol liability question raised in March 2005. Proper insurance coverage had also been verified. Bob Houtz asked whether parking for Grove events had been discussed; President Orth commented that parking was only for drive-in and drive-out for equipment loading purposes. Parking was currently available in the Community Center lot, but grant funding was being sought for a crosswalk and for a bridge and sidewalk project. He further commented there was some concern about compaction of the redwood roots in the Grove. General Manager Chapman said there might be discussion later about some parking on the Clover Street side of the boulder barrier. Director Ziady moved to waive further reading and adopt Resolution 2005-10; Director Horrick seconded.

Roll call vote was as follows:
AYES: Directors: Ziady, Horrick, Skezas, Orth
NOES: Directors: None
ABSENT: Directors: Pohlson

7. "Quarry Site" lot purchase – Consideration of resolution accepting grant deed. General Manager Chapman informed the audience the District had purchased a lot on Sherwood Road formerly known as the "rock quarry" to be used as a possible off-site storage area or spoils site. The District was also working with the County to obtain the two adjacent lots. A resolution and "Certificate of Acceptance" had been requested after the closing. Director Skezas moved to adopt Resolution 2005-11 accepting the grant deed of real property from Samuel and Mary Ajamian; Director Horrick seconded.

Roll call vote was as follows:
AYES: Directors: Ziady, Horrick, Skezas, Orth
NOES: Directors: None
ABSENT: Directors: Pohlson

8. Proposed revision to "Staywell" personnel policy language. General Manager Chapman stated this matter was up for information and discussion only. He said that some changes had been proposed since last fall on some personnel policies. The travel policy had been updated, as had the health benefits for retirees. The Staywell policy had been reviewed and found to need clarifying language as to how the account accrued and what documentation was needed for claims. Mr. Chapman said he had conversed with Terry Krieg, CPA, regarding some of the language content. He also pointed out that in the staff memo he had meant to italicize (as new language) the sentence reading "Claims for non-covered medical and dental expenses, deductible and co-payment. . . ." He advised that at the next meeting the revised employee agreement would be presented and the Staywell policy changes, as directed, would be approved as part of approving that overall package. The directors had no questions.

9. Recreation Committee – hiring of photographer to create "visualizations" of shaded fuel breaks. Director Ziady, Chair of the Recreation Committee, said her committee had formed an ad hoc committee to develop plans for the greenbelt. The demonstration site which has been marked as appropriate for a shaded fuel break has received comments that it was too hard to visualize, so the committee was considering cutting it. This was to be discussed at the upcoming public meeting on June 25, 2005. Brian Weller, a facilitator of the last public meeting, suggested shooting a photo and having an expert point out what would be cut. The committee also wanted to show the public an unabated lot, a lot cleared to Brooktrails standards, and a shaded fuel break site. Director Ziady stressed these materials could be re-used in future. Jerri Jo Idarius had been proposed as the photographer, and Jerry Garvey of the ad hoc committee would also advise her. The Recreation Committee needed to request Board approval for this expenditure, which would come out of the $5,000.00 Recreation budget. A letter from Richard Estabrook commenting on the proposal to cut the demonstration site was then discussed; Director Ziady said he was not part of the process and not current on what was planned. She said they have taken feedback from all the public meetings to try to develop a workable plan. The ad hoc committee was meeting two or three times a month and working with outside agencies.

President Orth commented he saw a one-time charge of $250.00 for the initial fuel break demonstration, but he felt leery of spending $1,000.00, one-fifth of their total budget, for photos. Director Ziady said they would like to do another shot on the ridge as well. Director Ziady said this wasn't a discussion about the pros and cons of fuel breaks, but a discussion to get the public input and for them to visualize. President Orth said he felt approving the $250.00 at this time would actually be a compromise, and he wanted to show only the shaded fuel break. Director Ziady said she had discussed this issue with the General Manager and he was supportive of the photography for educational purposes. She said to give her the tools to educate the public to continue through the process as quickly as we could. She said if they were hamstrung, it would take longer. Claudia Reed of the Willits News said she had two communications on the meeting, one a general flyer, and thought that a photograph would be offered, to the point she had put this into her article, coming out the next day.

General Manager Chapman said he was trying to support this committee because of the amount of work they were producing. President Orth said he would compromise at $500.00, which would buy them the two that they needed for the Saturday meeting. Director Skezas moved to authorize $500.00 for two photos; Director Horrick seconded. The motion carried unanimously.

10. Clearwell/Backwash Ponds Project – Payment protocol. General Manager Chapman stated that the payment process for checks to the contractor will be very cumbersome and filled with red tape. He explained a monthly cut-off date of the 20th for payment requests, with verification and approval procedures by the District, Oscar Larson (consulting engineer), and USDA. To help expedite the process and keep the contractor's cash flow moving, he requested the Board authorize checks to be issued upon completion of the payment protocol, without the need for advance approval by the Board, in order to make payment within ten days. Director Skezas moved to approve the contractor payment policy detailed in the staff report, and to allow the General Manager and the Board President, or any other director, to issue the checks after completion of the payment protocol, prior to Board approval, with the Board to receive a report and provide retroactive approval as necessary. Director Horrick seconded and the motion carried unanimously.

11. Rubber Spillway – Contract with Hanson Engineering. General Manager Chapman advised he had been working with Jim Hanson, a dam engineer of 40+ years experience, with 100 dams and reservoirs to his credit. Mr. Hanson would submit an application to the Division of Dams & Dam Safety to erect an 8' rubber spillway which would raise our strike line 3' (from 1,567’ elevation to 1,570’ elevation). This would recapture 50 acre-feet of the 70 acre-feet lost to siltation. There will have to be a CEQA process for issues such as inundation and floodplain, littoral riparian issues, etc. around the reservoir. Mr. Hanson talked to the CA Division of Water Rights Division Chief, Victoria Whitney, and got a verbal approval that the District would not have to undergo the two-year process the Division had previously said was necessary. The bad news regarding the project was that the anchor bolts would be the expensive part, and the cost was yet unknown; Mr. Chapman said he would come back to the Board if this project cost over $350,000.00. Also, while the SHN soils report said the silt was incohesive, Mr. Hanson felt that if it were properly bermed (engineered), it could be used to reinforce the base mass of the dam. Mr. Chapman then described the spillway's "bubble leveler" feature which would automatically adjust the reservoir level. He said CA Fish & Game indicated they might require a fish catch net at the top of the spillway. The subject then turned to eminent domain and District Counsel Neary said it could be used as a last resort, but many other options were available first.

The Hanson preliminary engineering report would cost $15,000. Director Skezas moved to authorize the General Manager to hire Hanson Engineering for the proposed scope of work regarding increasing the storage level of Lake Emily for the sum of $15,000. Director Horrick seconded. Director Ziady asked what would happen when we dredged the lake, if we have "netted out" our capacity already. Mr. Chapman said the point of diversion for the third dam will be redistributed down to the Lake Emily spillway. District Counsel Neary concurred that while this would be a cumbersome process, it could be done. President Orth said, regarding cost share, that the dredging project was considered a maintenance program, but now the rubber spillway would become a maintenance program because we were recapturing water. General Manager Chapman and Director Skezas disagreed. President Orth commented that, because there might be costs over the $350,000, he wanted to disclose this because it might cause water rates to be raised in the next year.

Bob Houtz asked whether it would be possible to regulate the water going down the creek. President Orth commented on the federal metering station at the headwaters of Willits Creek, and now the District anticipates installing another control meter, below Lake Emily, which will accurately control what we release into Willits Creek. An audience member asked about using the silt from the dredging; President Orth confirmed that Mr. Hanson indicated it could possibly be used to reinforce the dam with proper engineering. Robert Terry said that the SHN report said that the soil could not be so used. Mr. Chapman reiterated that Mr. Hanson wasn't discounting SHN's findings about the silt being incohesive, but rather there was an “engineering” solution around that issue. Mr. Chapman recounted that during the '70s there was apparently was some spillway movement, plus one of the concrete walls had to be completely rebuilt, and he said these were all examples of engineering problems and solutions. President Orth said part of the process will eventually be the engineering of raising the dam as part of a 218 bond election, including the second access road. The motion carried unanimously.