BROOKTRAILS NEWSLETTER 2008

April 23, 2007

Brooktrails Township
Community Services District

Annual Public Hearing Notice and 2008 Newsletter to Brooktrails Property Owners

Brooktrails Golf Course, managed by Ron Runberg, PGA
with office manager Stephanie Yadon

Hello, Brooktrails Property Owners:

Amongst a thousand towering redwood trees that even Tiger Woods can't hit over... we kindly invite you to play our beautiful 9-hole executive golf course established in 1962. Moreover, babbling Willits Creek tempts you with seven water crossings as you wind your way around this picturesque course. Ron Runberg, PGA, and his staff cordially invite you to try out their hospitality at the Brooktrails Grill — where they serve generous portions of home-made french fries to enhance your custom-made hamburger. They also have a wide assortment of refreshments including wine, beer, and soft drinks. We invite the public at large to check out the shaded picnic area. Come and join us as the aesthetics of this charming course are virtually unsurpassed!

You will find the annual notice of hearing for setting water availability charges and sewer standby charges on the last page. These charges are unchanged from last year. Once again our utility crews have continued their intensive water and sewer system maintenance programs, repairing lines and locating and fixing water leaks. Your annual water availability and sewer standby charges help fund such projects — to maintain our water and sewer utility infrastructure, for now, and so that it is ready for use when connections become available in the future.

The moratorium imposed by DHS in February 2003 is still in effect. We cannot give any estimate of when the moratorium will be lifted because, ultimately, it is the cumulative effect of multiple projects (and the approval of outside agencies) that will lift us out of the moratorium. Please visit our website at www.btcsd.org , where the section titled "Moratorium" will answer many of your questions.

  Water Department. Our Directors have embarked us on a number of water and capital programs including:

Rubber Spillway — Ghilotti Construction Company from Santa Rosa, CA was the low bidder selected to construct this estimated 5-month project beginning this summer. It will entail raising Lake Emily's shoreline by 3 feet and modifying our dam to 2008 dam safety standards. CA Dam Safety engineers will be monitoring this project thoroughly while the interior of the dam is exposed — and, should the need arise, we may be required to lower the lake at any time. If so, water rationing may be imposed immediately and local residents will be notified as soon as possible. Comparatively speaking, in 2006 we built a metal tank at the water plant that cost $800,000; this 2008 dam project is the equivalent to 105 of those tanks, except the price tag is around ± $3 million.

Desilting Lake Emily — Our goal is to remove 100,000 cubic yards of sedimentation and add a catchment basin to prevent further sedimentation. Current cost estimate is $3 million. This project will be done in conjunction with the enlarging of Lake Ada Rose project because the silt will be mixed with clay and used as part of the building component of the enlarged Lake Ada Rose dam.

Enlarging Lake Ada Rose — A new component in our plans is to substantially enlarge Lake Ada Rose by 38 feet. This will bring the dam crest to approximately 95 feet and create a maximum water depth of 85 feet. The surface area would increase from 6 acres (138 acre-feet) to 24 acres (725 acre-feet) and back up into two drainage areas. Comparatively speaking, this dam’s capacity would be almost three times larger than our current Lake Emily. The project would entail enough storage capacity for almost the 4,000 build-out envisioned by the Brooktrails Specific Plan (part of the Mendocino County General Plan). Furthermore, expanding Lake Ada Rose appears to have other advantages when compared to expanding Lake Emily. For example, there are fewer barriers regarding landslide issues, anadromous fish issues, silting issues, etc. The concept is simple. We would tear out the older dam and replace it with a bigger dam. Our water rights application with the CA Division of Water Rights is currently being evaluated. Fortunately for us, very few vacant lots are affected by this dam raise. As to roads, Primrose Drive will be reestablished over the top of the dam crest instead of below the dam. Lilac Road in the rear would be rerouted ⅛^th of a mile behind the reservoir. Two sewer lift stations would have to be redirected. Lastly, another item is solar energy. The dam borrow site (the hill next to the water plant) could be aesthetically contoured to place a solar field on its southwestern slope. This solar energy source could significantly offset the District's $100,000 (+) annual electricity bill.

Storage tanks — Around the time the Lake Ada Rose project is finished, a half-million gallon water storage tank will be required on the airport side for water distribution purposes. This area has by far our highest population density.

Raising Lake Emily. — We originally planned to raise Lake Emily 15 feet, but Lake Ada Rose has since trumped this project. Therefore its timeline will be rescheduled for a later generation (and it will require an expensive fish ladder).

Leak Detection Program — We owe a big thanks to our crews, who are always searching to repair and prevent leaks in our 60-mile water system.

Proposition 218. — We cannot exit the moratorium without major water projects, but they cannot be built without raising money. This legally must be done through a "Proposition 218 election" that would approve a land- based assessment bond to pay for the water projects needed to allow and serve more growth. An engineer will calculate the value of the improvements for each lot and place an annual assessment on each lot based on that value. Each lot will have a vote, but votes are weighted according to the value received and size of the assessment pertaining to each lot. The election process is very complex (and expensive) and it will be several years before it can be held.

  Sewer — Brooktrails sewage is processed by the City of Willits sewer plant. The City of Willits is now compelled by regulators to upgrade its sewer plant at a current estimated cost of $24 million. Brooktrails will incur approximately 37% of the capital costs, spread over 40 years. Furthermore, the State RWQCB (Regional Water Quality Control Board) has tightened standards for all sewer systems. A new state plan called the SSMP (Sewer System Management Plan) has imposed stricter standards of reporting and maintenance of sewer systems. For example, even though we cleaned 9 miles of the 54 mile sewer system last year, this year we have ramped up the pace considerably in terms of cleaning, to the point that we have taken on another employee to help us in this mandated task.

  Parks/Greenbelt — Besides District improvements such as a new restroom added to the Ohl Grove Park, we have in action the Mendocino County Fire Safe Council BLM grant ($166,852) and WUI grant ($36,063). CAL FIRE hand crews (32 men) are now working 160 days to reduce vegetation growth along District roads. Please note that we also have a Brooktrails Township clean-up day scheduled for Saturday, May 17, 2008. Two large 40 cubic yard dumpster bins will be available for non-hazardous material (items excluded are things such as paints, batteries, fluorescent lights, etc.). This would be a perfect day to get rid of that giant old 1980's satellite dish that has been hanging around for some time. We would like to thank Solid Waste of Willits for their free help in this endeavor.

  Golf — Come and play and enjoy our scenic golf course amongst the towering redwoods! Rates are very reasonable and our PGA professional, Ron Runberg, keeps the grill open almost every day.

  Fire — We would like to remind all lot owners that you need burn permits to burn your vegetation refuse, and you can get them at the District Fire Department or Office. You must call Air Quality at 707-463-4391 to be sure it is a permissive burn day before burning. Burn barrels are no longer allowed in Mendocino County. Please remember that burn permits are not valid between June 1 and the end of fire season each year.

  Second Access Road / Willits Bypass — Only partial funding for a phased Willits Bypass project was achieved in 2007. This includes the building of a four lane southern interchange and the first mile of right-of-way. The final four miles will be initially two lanes terminating in a northern interchange design that can accommodate a Second Access road project. Brooktrails, along with Mendocino County Department of Transportation and MCOG, launched a $131,000 feasibility study in 2007 on the Second Access Road. This engineering report is due October 2008. This project has been elevated in stature due to the high traffic count on Sherwood Road.

  Parole System Realignment — It doesn't seem right to think that parole services should be paid for by small districts responsible for water, sewer, fire, and park services. Or does it? Think again. The State of California, due to its budgetary woes, may permanently impose a cost shift program that will absorb about ½ of our property tax revenues and use those funds for a County-run parole service (parolees in the past have been State responsibility). This loss will approximate $125,000 per year, and without a doubt this will affect many future District programs. This State plan will be similar to the ERAF shift completed in 2005 and 2006 (schools), whereby we lost a total of $232,000 over two years that could have been used to fix some of our problems. Please contact your local state representatives if you live in California about the impropriety of funding parolees with money needed for water, sewer, fire, and parks.

In closing please remember that this cost shift could gravely affect our fiscal stability, and it certainly could delay some of our local infrastructure projects. You should also note that the State regularly hands down unfunded mandates that make it more expensive to operate a district. Again, please let our State representatives know that in this fiscal predicament, citizens do not want their water / sewer districts crippled for the benefit of other unrelated programs! Without trying to sound too pessimistic, the bottom line is that this State cost shifting program will affect your wallet.

In closing, BTCSD assures you that our primary goals are to provide the community with a safe and adequate water supply for both present and future customers, a reliable sewer system, recreational opportunities, and fire protection. We invite you to attend all of our Board meetings and committee meetings. The Board generally meets on second and fourth Tuesdays each month. The Recreation/Greenbelt Committee meets quarterly. All meetings start at 7:00 p.m. at the Brooktrails Community Center. Meeting agendas are posted at the District Office, the Golf Course Pro Shop, and the Community Center at least three days in advance. Public comment time is part of all meetings. Agendas and Board minutes are also posted on our website. Please come by the District Office, call 707-459-2494, or visit our website at www.btcsd.org for more information. Thanks for reading this letter.

Yours truly,

Mike Chapman

General Manager

NOTICE IS HEREBY GIVEN that a Report has been filed with the Secretary of the Board of Directors of Brooktrails Township Community Services District containing a description of each parcel of real property which will be subject to a Water Availability Charge in Fiscal Year 2008-2009.

The Board of Directors has detennined that the Water Availability Charge will remain the same as it was in Fiscal Year 2007-2008: Thirty Dollars ($30.00) for each non-metered parcel of land, and Five Dollars ($5.00) for each metered parcel of land located within the Township to which water is made available.

Also, a standby charge of Fifty Dollars ($50.00) will be imposed for each parcel of land in the District which has sewer available, whether or not the parcel has been connected to the sewer system. This is a continuation of the existing rate.

Notice is hereby given that the Board of Directors will conduct a public hearing in regard to said charges at the above time and place. All interested persons are invited to attend and to be heard.

A copy of the Report is available for inspection at the District Office,

24860 Birch Street, Willits, California 95490

(707) 459-2494.

DATED: April 23, 2008

MICHAEL V .CHAPMAN
Secretary to the Board
BROOKTRAILS TOWNSHIP COMMUNITY SERVICES DISTRICT