MINUTES

After the "Introduction" section, President Orth commented that the most recent logging in the District actually included 1980’s and 1990’s (Ohl Grove / Golf Course) and that logging just occurred in 2003 on the new 150 acres just acquired (Mayfield property). President Orth said logging occurred before we acquired the new 150-acre parcel, but we were involved with CDF and the timber harvest plan. He asked that the reference [in paragraph 1] to last logging as having been in 1964 be dropped, or not be specific as to the year. Director Ziady felt the reference to past logging itself should be retained, as we see can now see the results of that in the greenbelt. An audience member asked if the logging practice was selective; Director Ziady said we aren't logging at all.

In discussing the zones, Director Ziady commented that our new GIS mapping technology would be involved in delineating these. She stressed that the District's definition of a shaded fuel break will be the standard, as opposed to other definitions. Director Skezas asked if Community Park zones would become parks; Director Ziady responded they would not. An audience member noted that the District already allows residents to thin in greenbelt behind their properties by District standards, and that in some areas, this distance covers the entire greenbelt parcel. President Orth commented that CDF finished a quarter-million-dollar grant to bring various greenbelt areas to District standards.

During the "Fire" section, President Orth commented that maintenance of the greenbelt was done by coordination with the fire department. Director Pohlson said she understood, per CDF, that clearing could be done to 1,000 feet. [Note: per correction to minutes from December 13, 2005 meeting, the maximum distance for clearing is 300 feet.] Claudia Reed asked if President Orth was referring to a permit for greenbelt clearing; Director Ziady responded that there is a process in place, but it is not generally known. She expressed appreciation of staff's comment about not tying us down to seeking one particular type of grant fund. She noted that the shaded fuel break costs would be shared on private property; the District would clear for private landowners provided that they agreed to maintain it thereafter. There would need to be funding available for maintaining the shaded fuel break on District lands. She noted that a community tax would be preferable to a water surcharge so as to spread the cost throughout the community.

An audience member commented that he would like to limb up some lots around him; Chair Ziady said if the adjacent lot owners agree, he could work with the Fire Department and do so. Claudia Reed asked how much neighborhood control there would be, and whether a neighborhood could go beyond abatement standards—as, for example, for a community garden. Director Ziady said they would like to see neighborhood classes during the rainy season so another year is not lost, and that the curriculum needs to be prepared quickly. Director Pohlson asked if the water tax on unimproved lots could be used for maintenance of watershed. President Orth said he would like to discuss that issue as part of another agenda.

After the "Erosion" section, comments were requested. An audience member asked where the District received its funding. President Orth explained there was no specific funding or tax for the Recreation Department, although the Board recently committed a percentage of the General Fund for the Recreation Committee; otherwise it has been grant money. Director Pohlson said we get 1% of the ad valorem property tax, enterprise funds (water and sewer), and the special assessments.

After the "Riparian Zones" section, an audience member asked who prescribed the borders and was advised that it was CA Fish & Game. Director Skezas noted that some of the streams border private property and asked how that would be handled. Director Ziady responded that would be an issue. Rick Williams mentioned some private property owners in Sonoma County have gotten in terrible trouble regarding streams and asked if CDF has designated any particularly sensitive ones here. President Orth responded that that he had observed that Willits Creek has less sedimentation than it did five years ago, and we have taken out Summer Lake and turned it into natural habitat. Furthermore, he said with the new recent rains this year we have been monitoring Willits Creek with our bypass valve, and mimicking natural flows in response to rainfall, to bring the salmon up.

Director Ziady continued to the "Recreation" section of the Plan. President Orth commented that in the list of development for the Ohl Grove he would like to see reactivation of the parking at the historic bridge site. Director Ziady said she didn't think CA Fish & Game was going to allow re-placement of a bridge at the historic site, but would require a different site. Rick Williams commented that when the Wild Turkey Group was hiking last weekend they found several trees down across the trail; he asked if they would be able to cut through the trees themselves, or who they would have to check with. It was confirmed he would need to contact the District about this. Mike Aplet said there was a limited amount of work that they could do that would not involve power tools, but it needed to be done through the process with the District Manager. Director Ziady said there was a volunteer trail maintenance program in Sonoma County with a chainsaw class which allowed certain people to use power tools.

"Restoration of the Core Zone" was then read. President Orth clarified that the stewardship plan better prepared us for grant applications. Director Ziady commented that grant applications require people volunteering a lot of time to write the grants.

She continued to the "Implementation" and "Conclusion" sections, thanking all the people who had contributed to the public meetings and drafting of the plan. Director Skezas commented he felt the plan was well put together, but that some things were missing such as timelines, priorities and funding estimates. He did not like the term "community park" because these are surrounded by private property, and people wanting to use them as a park would need to cross private property to get access. Director Ziady said the term "community park" was probably a valid point. She said this plan was a general guideline which will be developed section by section. We cannot do a timeline because of the water moratorium, loss of funds, and other problems. Director Skezas said a generalized timeline was all that he had in mind, even for Phase 1 and 2. Director Ziady said so much depended on volunteer help becoming available; if she had paid staff she could have possibly set specific timeline goals. President Orth said he ran for the Board in 1984 on this very issue and it has taken 16 years to get to this plan; he said these were multi-generational issues, and what we're doing here is for future generations. He commented that he did notice that the lists of goals weren't prioritized; Director Ziady said that actually they were kind of listed in priority order. She said that each project would involve the committee, and then come to the Board for each action item, such as a class curriculum.

Director Pohlson commented for a committee to accomplish this plan in a year was a considerable achievement, and she would like to have the Board accept the plan as a guideline, with the idea that it was always evolving. She said the most important thing right now was the education timeline; she suggested the Board generally approve the direction of the plan, and then come back and review it as new data and evidence developed. She asked Director Ziady what she needed from the Board tonight. Director Ziady again focused on the education aspect. Rick Williams noted that he would like to see the education begin this winter, and if absentee owners were contacted, we could accomplish a lot in the next 10 months. Wally Stahle asked what liability the District takes, outside of the waiver (if it is totally enforceable), if a flow of citizens worked in the greenbelt as a result of an organized, announced public effort. General Manager Chapman suggested he should do some research on workers compensation issues, and felt that if big trees and chainsaws were involved, we should probably have staff do that portion. Director Skezas moved to accept the report, while not approving it, and go ahead and authorize commencement of the education portion in January. Director Pohlson seconded.

A discussion began between Brian Weller asked Director Skezas regarding specific changes. Director Skezas said funding was the main part, and that he was not going to approve a plan which said we were going to go for a tax, which he believed had no chance in passing.

For a new tax you would have to go to every property owner in the District, and he understood it would require a Prop 218 election. Director Ziady said no, that we were asking for a tax much like the special fire tax. Director Skezas responded that it would still need to be a Prop 218 tax, voted on by all. Director Pohlson clarified that pre-existing taxes were grandfathered in by Prop 218 and these could be raised without a Prop 218 process, but that any new taxes would require the full process (election). She questioned whether the water and sewer taxes could possibly be used for the watershed. President Orth said by agreeing to accept this report, we were also agreeing to review this report as specific issues come arose, and hash out everything in much greater detail. The Prop 218 process was explained more for Mr. Weller and the audience. Director Skezas stressed that you had to evaluate what the chances were of its passing, and assess the value for each lot, which is an expensive process. He said he felt you could not do an additional fee, either, and he felt it would be a big problem if we tried to use existing fees for greenbelt restoration while under the moratorium, as these fees should currently be directed towards water projects that would get us out of the water moratorium.

An audience member asked about the process for cutting in the greenbelt himself and whether waivers could be signed. The board then described the permit process for him, the limitation to hand tools, etc. The motion was re-read, as being to accept and file the report and to begin work on the education component. An audience member asked if this meant they were approving it. Director Pohlson commented we would be accepting the overall concept, but that more education was needed and we would need to work on the Plan for a long time. Claudia Reed said at the public meetings, a high priority seemed to be establishing a fuel break on Ridge Road, and she thought people wanted to get that done before the next dry season. She asked if the Board by this motion was also authorizing getting grants to put in that fuel break. President Orth said we would accept any and all grant proposals, but the District has already spent lots of time on these issues and has already done one heavy abatement process on Ridge Road properties regarding that exposure. He continued that while one portion of the plan would commence, the shaded fuel break portion would come back to the Board. He commented that CDF would look at this plan as a way to help direct state resources to us. Director Skezas said when funds were available we could make that a priority.

Director Ziady said to keep in mind that you cannot go after grant money for this plan until you can say that is accepted by both the community and the board, so we should not begin that process until the Board has accepted it. Roll call vote was as follows:

AYES: Directors: Ziady, Horrick, Pohlson, Skezas, Orth
NOES: Directors: None
ABSENT: Directors: None

President Orth thanked the participants for their work on the preparation of the Plan. A short break was taken.

6. Review of June 30, 2004 audit – Terry Krieg, CPA. General Manager Chapman clarified that he was still working with Ross Walker of the City of Willits to collect their data for the June 30, 2005 audit, and that the audit being discussed tonight was for the fiscal year ending June 30, 2004. Mr. Krieg took the podium and reviewed the findings in the audit, reminding the Board that GASB34 standards have changed the concept and format of our financial statements. He pointed out the narrative in the "Independent Auditor's Report" section relating to significant financial events. Two new "Government Wide" financial statements have been added to the audit, which break the district into business-type operations (water, wastewater, golf enterprise) and governmental operations, which are also treated also as if they were a private business, accounting for depreciation, capital assets, and debt.

President Orth asked if the statement at the end of the management letter was also a new requirement; Mr. Krieg confirmed it was. President Orth asked if the disclaimer about internal controls was boilerplate or specific to us. Mr. Krieg said it is a result of what happened with Enron, which resulted in additional auditing standards requiring auditors to be aware of the possibilities of material and significant fraud and its effect on financial statements. He said if fraud had in fact come to his attention, he would have been obliged to come to the Board about it immediately. Director Skezas moved to accept the audit of June 30, 2004. Director Horrick seconded, and complimented staff for their financial work. An audience member asked what the significance of the debt to the golf course was. General Manager Chapman said that would be discussed in the next audit (June 30, 2005), because that fund had been dissolved into the General Fund. Director Skezas commented that he disagreed with that dissolution. General Manager Chapman said it was approximately $135,000, which encompassed a $62,000 loan originally between the Golf Course and the Sewer Fund, and another $85,000 cash deficit between golf and water; he said he hoped we would be able to discuss the 2005 audit February 2006. President Orth clarified we were tied to the City of Willits audit in order to finalize ours, and they were about 14 months behind schedule. Director Pohlson commented that she would like to see a quarterly report similar to the budget. General Manager Chapman said staff would try to satisfy this wish. Roll call vote was as follows:

AYES: Directors: Ziady, Horrick, Pohlson, Skezas, Orth
NOES: Directors: None
ABSENT: Directors: None

7. Consideration of authorizing 3.89% rate increase for Solid Waste of Willits; set public hearing. General Manager Chapman described the components of the total 3.89% rate, and said that a public hearing would be set for January 10, 2006. An audience member commented that he had noticed some leaks from the trucks' hydraulic systems. Gerry Ward responded that they had purchased a new hydraulic arm for the truck that seemed to leak the worst, and that these arms are used roughly 300 times a day. They anticipate buying two more new arms next year. They cost about $5,000 each and last about 5 years. Mr. Stahle noted there was a slowly increasing amount of leakage over that lifespan. Mr. Ward acknowledged this, and said they do drip, but if there's any kind of major spill, they appreciate the public calling. They do carry absorbent on the truck. County Solid Waste will inspect their trucks next week. An audience member commented on the overflowing containers he sees on the street and asked if the drivers were required to pick up overflow that falls on the street. Mr. Ward said their policy was to take most of it, and that there was an extra charge to the customer if they have to get out and do this. He said, however, they typically won't pick up all the litter caused by a dog or a bear. Director Pohlson moved to set a public hearing for January 10, 2006 on the rate increase proposed to be effective February 1, 2006. Director Horrick seconded. Mr. Ward commented that their customer base is still around 1,000. President Orth noted this was a voluntary program, so if people feel the rates are getting too high, they can drop off it. The motion carried unanimously.

8. Discussion and consideration of LAFCO / SB 135 provisions. General Manager Chapman introduced the subject, which came up because SB 135 changed the way Districts will exercise their powers in the future. LAFCO must be notified prior to January 1, 2006 of all powers we currently exercise now, and we will have to get permission from LAFCO to use latent powers after that date. Discussion turned to past ambulance power and solid waste power. President Orth noted that the Board needed to direct District Counsel to review SB 135, particularly with regard to the planning authority that can now be granted to special districts. (We had to get special state legislation in order to do our previous planning.) District Counsel Neary said the District was originally formed as a resort improvement district and had the unusual power of planning. The special legislation allowed the Board to sit as a planning commission and resolve what would otherwise be incompatibility of office issues. He affirmed that he believed the District has exercised this power and continues to exercise it, and he said he will work with the General Manager to be sure this is properly phrased in the response to LAFCO. President Orth said he had talked with Frank McMichael of LAFCO, and he was advised that if we make a mistake and fail to include a power, there will be a process whereby we can add it, if we can meet the burden of proof. He noted the latent power of habitat mitigation and said that clearly we have done this before and continue to do so. President Orth said this will be a two-step process, with more clarification at the next meeting. He said he felt we were also exercising flood control powers, because we are designing a rubber dam technology to react to high water flows, and that we also abandoned the Summer Lake reservoir, and that area now operates for flood control and could contain floodwaters. He said the key is if we think we've exercised the power, we should at least list it now. It would be better to have it removed for not having the financial wherewithal to exercise it in the future, than to not have it listed.

An audience member asked if any District employees carried firearms, and was advised they do not. President Orth explained that if a power was held by some other agency, we cannot list it as our power, and the Sheriff has this power. Director Ziady asked if under water supply our watershed management would apply; President Orth said that should come under flood control and he felt it would be included there, along with erosion control. Director Ziady noted the power to operate hydroelectric power and she asked if we might ever exercise this. President Orth suggested we would go to LAFCO on that one should we entertain the prospect. LAFCO would primarily be looking at financial liability if a power is exercised. Director Ziady also asked about use of solar; after some discussion it was decided this was not a power, and we would be free to use it for our own structures, but not to sell it to others. Gerry Ward commented that Brooktrails was the largest service district and has the most powers of the local districts. He said the District might look at services needed by other districts and consider providing them. He said Mendocino CSD had a lighting district of which Frank McMichael was not aware, and they had street lights in parking lots. Director Pohlson said she believed we do have the street lighting power — President Orth was not so sure. Director Pohlson said street lighting had already been discussed by the Board regarding the PG&E street lights issue. President Orth was not sure this would qualify, and felt it was a planning issue rather than a lighting issue.

An audience member said that the County provided planning, and asked how Brooktrails could also do this. President Orth said it can, and it is a matter of local control, but we can operate up to the municipal level as a water and sewer district as rewritten. Areas like the town of Mendocino that are looking to establish themselves as actual cities have a process, including planning, so they can acquire the power to acquire the funds to do the planning, environmental studies, etc. to reach that next plateau. Claudia Reed of the Willits News noted that our Specific Plan was part of the County General Plan. It was concluded that staff will return for the next meeting with more specific information and the full body of the new law.

9. Discussion of Lake Emily compaction test borings for Division of Dams & Dam Safety. General Manager Chapman reviewed recent events in the rubber spillway effort. He discussed the Maacama Fault issue and how it would be handled, and said it was imperative to know if we would be able to have the desired flexibility as to the time of releases (prior April 1 of each year), which is another point of the project. A meeting with the Division of Dams to resolve these questions would be needed before we would actually proceed with the test borings, but permission was still needed from the Board to continue the project. Estimated cost not to exceed $35,000 for the core drilling was discussed; a firm out of Sacramento, recommended by Hanson Engineering, would perform this specialized work. The engineers reviewing the project think our present dam is sound, and that we have an excellent weeper ditch, and they do not see technical problems [Note: except anchor bolts in spillway] other than the chimney drain on top of the dam which might have to be raised. This would depend on results of the compaction test. Director Ziady asked if the Maacama Fault was a big concern just for the rubber dam, or also for the 15' raising of the dam; Mr. Chapman advised it is a concern for both.

Director Skezas moved to authorize the General Manager to execute the necessary documents and contract(s) with Hanson Engineering and Blackburn Consulting for the four core drillings, as specified by the Division of Safety of Dams, not to exceed $35,000, which will be a 50/50 water enterprise fund and water capital facility fund expenditure. Director Skezas asked for clarification that the answers on the fault line and the timing of releases would come from the Division of Safety of Dams; General Manager Chapman said they would. President Orth said the motion should be predicated on results from the Division of Dams. Director Horrick seconded the motion. Director Skezas asked if we had to have them under contract to get them to write the proposal; General Manager Chapman said yes. He said we have spent about $8,000 of the $15,000 contract we have with Hanson Engineering so far. He said he understood the $35,000 was for the core drillings and the geotechnical letter, which would be done by Rick Sowers of Blackburn Consulting. Discussion followed about the details. Director Pohlson said it seemed to her that we could not generate a response from Division of Dams about the fault line or anything else without getting a consultant to ask the questions. Director Skezas said the contract will be structured such that we will not drill unless we get something favorable back from the CA Davison of Dams. General Manager Chapman said this was correct; we would send a letter proposing to do drilling, but requesting answers to these questions first. The letter sent by Division of Dams to Hanson Engineering didn't really address the Maacama Fault Line, and we know it has to be addressed.

President Orth said when a proposal is made to the state, a number designating maximum expected movement of an earthquake fault is assigned, and that number is factored into all engineering for the project; the dam would be brought up to code to withstand that factor. It adds to the total cost of the project. General Manager Chapman said he wanted to be able to respond to the state at the meeting without having to return to the Board first. Claudia Reed asked how far away we were from the Maacama Fault and was advised about 1/4 mile. Roll call vote was as follows:

AYES: Directors: Ziady, Horrick, Skezas, Orth
NOES: Directors: Pohlson
ABSENT: Directors: None

J. ADDITIONS TO FUTURE AGENDAS. President Orth requested that staff look into bird flu and its potential disruption to government services, and to react to the potential for a bird flu outbreak; he said we need to design a way for our government to respond. He gave an example of who would run the water plant if all of staff were sick.

K. SPECIAL REPORTS

Directors: None.
District Counsel: None.

General Manager Chapman: Mr. Chapman noted that the Smith/Johnson transaction was concluded and we received the $6,200.00 water connection fee. Director Pohlson asked what the life span was on the rubber storage reservoirs depicted in an attachment to the general manager report; Mr. Chapman said he would find out.

L. PUBLIC COMMENTS
Wallace Stahle asked that emergency water service be addressed on a future agenda and that staff and the Board discuss what would be done in the event of a disaster.

M. ADJOURNMENT
Director Pohlson moved to adjourn and President Orth declared the meeting of
November 8, 2005 closed at 9:45 p.m.


CHARLES A. ORTH
President


MICHAEL V. CHAPMAN
Secretary to the Board of Directors