BOARD OF DIRECTORS
Regular Meeting of February 25, 2005
MINUTES
CALL TO ORDER
A regular meeting of the Board of Directors of the Pebble
Beach Community Services District ("PBCSD") was held in the District
Boardroom on February 25, 2005. Board President Gary D. Hornbuckle called the
meeting to order at 9:33 a.m.
ROLL CALL
Present: Directors David R.
Hendrick, Gary D. Hornbuckle, Leo M. Laska, Nancy D. McCullough, Richard D.
Verbanec
Absent: None
Others Present
Richard Andrews, General Manager/Board Secretary
Laura Paxton, Board Clerk, Paxton Ad Hoc
Robert Wellington, District Legal Counsel
Suha Kilic, Finance Officer
Michael Niccum, District Engineer
Sam Mazza, PBCSD Fire Chief/California Department of Forestry and Fire
Protection ("CDF"), San Benito-Monterey Counties Unit
Dennis Carreiro, Fire Prevention Battalion Chief, CDF
Jackie Scoggins, Operations Battalion Chief, CDF
George Haines, Asst. Unit Chief, CDF, San Benito-Monterey
Counties Unit
June Stock, Director, Del Monte Forest Properties Owners
("DMFPO")
John Tormey, PBCSD resident
John Fisher, Pacific Grove resident
Mark Verbonich, Vice President, Community Affairs, Pebble Beach Company
("PBCo")
Spencer Thompson, PBCSD resident
Vinod Badani, Vice President, E2 Consulting Engineers
Robert Kohn, Director, Carmel Area Wastewater District (“CAWD”)
Ray von Dohren, P.E., General Manager, CAWD
Sherrick Kernoll, PBCSD resident
Steve Rhee, Candidate for appointment to PBCSD Board of
Directors
Jeffrey Froke, Candidate for appointment to PBCSD Board of
Directors
Harold Morris, Candidate for appointment to PBCSD Board of
Directors
APPEARANCES AND ORDER OF BUSINESS
There were no additions or changes to the Agenda.
MINUTES
MOTION 02-05-01
Moved by Director Laska, seconded by Director Verbanec, and
unanimously carried, to approve the minutes of the regular Board meeting held
January 28, 2005.
FINANCIAL MATTERS
The Board received and reviewed the Statement of Receipts
and Disbursements and the Warrants Register for January 2005.
Director Hornbuckle noted that a line item reflecting the $2 million transfer
from the Operations Fund to the Capital Outlay Fund was not included in the
totals on the summary page of the Statement of Receipts and Disbursements.
Mr. Kilic said the report will be corrected to reflect the transfer. In
response to Director Verbanec’s question regarding the District’s installation
of an infrared light on the security camera at Indian Village, Mr. Kilic stated
that monitoring at night is not satisfactory and the installation was an unsuccessful
test to improve night surveillance. A
motion detection device that activates a light or lights will be evaluated. Mr.
Kilic reviewed other items regarding the Warrant Register. With regard to certain expenditures related
to the upgrade of the District’s Geographic Information System (“GIS”), Mr.
Kilic suggested that he present an on-line demonstration of GIS system
capabilities for the Board at its next regular meeting.
MOTION 02-05-02
Moved by Director Laska, seconded by
Director McCullough, and unanimously carried, to approve the Warrants
Register for January 2005.
FIRE PROTECTION
Fire Chief’s Monthly Report
The Board received and reviewed the monthly fire department
operations report. The sensitivity of house fire alarms and the District
ordinance in place for limiting false alarms was discussed. Fire department staff indicated they prefer to
work cooperatively with residents who have overly sensitive fire alarm systems
in order to avoid taking punitive actions under the District’s false alarm
ordinance.
MAINTENANCE, ENGINEERING, AND CONSTRUCTION
Wastewater collection, treatment and disposal system
The Board received and reviewed the
District Engineer’s Report of Utilities Operations and Maintenance for 1/20/05
– 2/16/05. District Engineer Niccum responded to questions regarding the source
of inflow and infiltration into the District wastewater collection system. It
appears that on-going sewer line replacement efforts have curbed the
infiltration of groundwater into the system. The maintenance staff plans to
monitor individual lines during the winter season to determine if and where
inflow, including possible illegal connections, is a factor. Ray von Dohren, General Manager, CAWD, stated
that on December 30, 2004, CAWD received its first discharge violation notice
from the Regional Water Quality Control Board in nearly four years. The
violation did not relate to the National Pollutant Discharge Elimination System
(“NPDES”) permit for secondary treated wastewater, but rather the discharge
requirements for tertiary treated wastewater.
He said the capacity of the CAWD outfall line was reduced because repair
efforts were delayed due to inclement weather. The flows into the treatment
plant exceeded the capacity of the outfall line and tertiary water was
discharged to the Carmel River causing the violation. Mr. von Dohren characterized
the violation as “technical” because the quality of tertiary effluent is very
high, measured at 2.2 parts per million (“ppm”) coliform count as compared to
2,400 ppm coliform in Carmel River water that was tested. He also indicated that his District’s
monitoring for infiltration and inflow of private service lines within CAWD indicates
those lines are not a significant factor.
More likely, the problem is inflow from illegal connections, which cause
high flows during wet periods.
Forest Lake Reservoir Financing
The Board received a status report
regarding the Forest Lake Reservoir Project from District Engineer Niccum. Mr. Andrews provided supplemental oral
comments indicating there had been some further progress in revising the
Reimbursement Agreement between the District and PBCo. Mark Stilwell, Executive
Vice President, PBCo, in communications with District staff has expressed PBCo desire
to now move forward with the Forest Lake Reservoir construction. However, a combination of factors has temporarily
limited PBCo’s ability to follow through with the District at this point: the
upcoming Planning Commission and Board of Supervisor hearings of PBCo’s Del
Monte Forest Development Plan, and the inability to resolve the previously
reported issues raised in a letter received from Attorney Rosenthal on behalf
of his clients regarding the sale of water rights to property owners within
Pebble Beach. That issue has recently been
narrowed to a question whether owners of vacant lots who purchase water rights
from PBCo will be responsible for separate metering of their use of potable
water. As a move towards resolution, PBCo is considering adding a caveat to the
water sales agreements that states if a regulating authority challenges the
rights of buyers of water to use the water PBCo will defend the buyers’ rights,
and if a court subsequently decides that the water sold for construction of
homes on vacant lots cannot be used, the buyer can terminate the sales
agreement and get their money back. Correspondingly, PBCo is requiring a
failsafe termination clause in the PBCSD Forest Lake construction reimbursement
agreement allowing construction to be stopped by PBCo during the course of the
project if any unforeseen funding issues warrant such a course of action. As a
further alternative, the construction contract allows PBCSD to postpone
construction up to 90-days before the contractor is allowed to terminate the construction
contract. Mr. Andrews noted that the changes to the reimbursement agreement
outlined would be substantive and will therefore be presented to the Board for
approval at a special meeting to be scheduled in March. He said while construction
originally scheduled to start March 1st would not be realized,
District staff is optimistic that the project will move forward in the next few
weeks.
Director Laska inquired as to the possibility
of the District pre-financing the Expanded Reclamation Project and the affect
such financing would have on the currently established agreements. Mr. Andrews
stated that the current agreements would stand if the Board did not require
anything further. If pre-financing were a course of action being sought by
PBCo, which at this time it is not, negotiations would be needed with PBCo and
most likely with the Monterey Peninsula Water Management District (“MPWMD”) to
revise the agreements such that PBCSD could realize a long term return on any
funds spent. Further discussion ensued about financing conditions and technical
issues relating to the project.
PBCSD Capital Improvement Projects
The Board received and reviewed the
District Engineer's monthly status report on capital improvement projects.
There were no additions to or questions regarding the report.
Mr. Niccum also presented a written
report and technical drawings in support of a proposed increase in the scope of
the Fire Protection Water System Improvements Third Priority Pipeline
Replacement Project, which would include construction of an additional 1,100
feet of water main line near the Monterey Peninsula Country Club.
MOTION 02-05-03
Moved by Director Laska, seconded by
Director Hendrick, and unanimously carried, to approve an increase in the scope
of the Fire Protection Water System Improvements Third Priority Pipeline
Replacement Project, as identified in the District Engineer’s Report, and
authorizing the General Manager to execute an increase of $79,399 in the
construction contract resulting in a revised contract amount of $1,573,959.
The
District Engineer’s regional stormwater permit status memorandum was submitted
to the Board for information and discussion, along with a letter prepared by
Mark Stilwell, Executive Vice President, PBCo, to the California Regional Water
Quality Control Board, Central Coast Region (“RWQCB”). Mr. Andrews stated the intent of the District
Engineer’s memorandum was to clarify the issue of compliance with federal storm
water discharge requirements from small municipal separate storm sewer systems.
The Board discussed the recent publicity related to this issue. Director
Verbanec inquired as to the feasibility of mitigation measures being suggested
by RWQCB staff. Mr. Niccum responded that communities in Southern California
have a dry weather storm water runoff diversion program that aids in reducing
pollution of beaches. Locally, the City of Pacific Grove has implemented a
pilot program to divert water from storm drains in the dry season for treatment
at the MRWPCA regional treatment plant in Marina
Discussion
ensued regarding the District’s authority, but not presently its
responsibility, to manage storm water. Mr.
Andrews commented that in any possible future consideration by PBCo of a change
in management of its storm water system, the need to control inflow from
unauthorized connections would probably have to be addressed. He said if the
District were to assume management responsibility of the storm water system and
if unauthorized inflow into the District wastewater collection system became an
issue with the RWQCB, the storm water runoff now getting into the sewer
collection system will, in effect, have no where to go. This could possibly require costly
construction of new stormwater drainage facilities. Director McCullough said
she believes there is in effect a County ordinance that requires any resident
using a sump pump to have a holding tank to collect any water being pumped. Mr.
Andrews suggested that should the District be requested to actively participate
in this issue with the PBCo that it become involved only in overall master planning
of the management of storm water runoff, and that PBCSD not consider assuming
responsibility for management of the system.
CAWD Board Meeting
Director Hendrick reported orally regarding the Carmel Area
Wastewater District Board meeting held February 17, 2005. He highlighted the
fact that the District’s new micro-turbine electrical generators powered by digester
gases are creating a considerable electrical cost savings for CAWD. Mr.
Andrews, who also attended the monthly meeting, stated that CAWD had received a
“clean” financial audit report.
CAWD Meeting Assignment
Director Hornbuckle accepted the assignment to attend the
CAWD regular Board meeting on March 17, 2005 at 1:30 p.m. in the CAWD Boardroom
at 3945 Rio Road, Carmel.
SOLID WASTE MANAGEMENT
Director
Laska submitted a summary of meetings of the Monterey Regional Waste Management
District (“MRWMD”) held on January 21, 2005, and on February 18, 2005. In
reference to the rate increase in tipping fees to be effective January 1, 2006,
Finance Officer Kilic stated that property owners would be assessed the
increase on the July 1, 2005 property tax rolls, to cover increased costs by
the contracted waste hauler resulting from the MRWMD increase.
GENERAL GOVERNMENT
A memorandum prepared by District Legal Counsel Robert
Wellington to General Manager Andrews dated February 18th, 2005, as
well as past correspondence relevant to the question of Legal Counsel’s dual
role as attorney for both the PBCSD and CAWD, were submitted to the Board for
information and discussion. Director McCullough clarified the reason she
requested the dual role issue be placed on the agenda, was that during a recent
CAWD Board meeting that she attended, a CAWD Director had inquired whether any
conflict had been noted arising from Legal Counsel serving both Districts. Director
McCullough said that District contracts and legal issues have become
significantly more complex in recent years, and it had occurred to her that any
withdrawal of Legal Counsel from District dealings could possibly create a
hardship for both Districts.
Mr. Wellington reviewed the content of his submitted
correspondence and stressed that no actual or perceived conflict had arisen in his
16 years of service to the Districts. From
a practical standpoint, he said, dual representation has benefited both
Districts, noting in particular recent contract negotiations for Phase II of
the CAWD/PBCSD Wastewater Reclamation Project. Mr. Andrews pointed out that
legal counsel undergoes an annual performance review by the Board, and that no
issues of conflict have been raised during any of the reviews. Following further discussion directors
concluded no action was in order regarding this matter at this time.
District Newsletter
Mr. Andrews gave a brief background of the District’s
experience in publishing its newsletter from 1987 through 1995. He said that during the 8 years of producing a
conventional newsletter, publication frequency had been decreased from
bi-monthly to quarterly. Then, since
1995 a yearly newsletter has been distributed with a budget focus, including description
of related work programs and other District functions. Director Verbanec suggested
that if a newsletter is to again be published
that the Board first determine an intent or “tone” for the newsletter.
His understanding, based on a California Special Districts Association statewide
survey, is that District constituencies are very appreciative of special
district services, but knowledge of districts and the scope of services
provided by districts is limited. Mr. Andrews noted the legal restrictions imposed
by the Fair Political Practices Act requiring exclusion of photos, statements
and other information about elected directors in local government newsletters.
Director Laska said he favors more promotion of the District web site in lieu
of a newsletter publication. Director McCullough suggested consideration of large,
full-color “postcards” for dissemination of District news, a format she deemed
more likely to be read by residents. The Board agreed to continue discussion of
the matter at the next regular Board meeting to allow time for directors to
consider the purpose or objective for publication of a District newsletter.
Process for filling Board vacancy
President Hornbuckle reviewed the submitted report from the
General Manager, which outlined the process previously
approved for filling the remaining term of office of Director Hendrick
following the effective date of his resignation on March 1, 2005. President
Hornbuckle suggested, and the other directors concurred, that later in the
meeting the Board would interview those candidates who were present, and then
determine if there is majority support among directors to appoint one of the
candidates to fill the forthcoming vacancy on the Board. Director Hendrick indicated that he would
participate in the interviews, but would abstain from the voting process among
directors. There were no other comments
or questions from Board, staff or the public relating to the process of filling
the position of Director.
Oral reports from General Manager
There were no reports from the General Manager.
Questions from directors or staff seeking clarification of
matters within the purview of the District
There were no questions from Directors or staff.
Oral reports or announcements from Board President, Directors
or staff
Director Verbanec reported on his attendance at an all day
workshop in Sacramento for newly elected or appointed special district
officials. He stated that while he found the workshop helpful, the briefing
given him by District staff upon his appointment to the Board covered much of
what was discussed at the workshop. One
aspect of the workshop that he found interesting was the California Special
District Association public survey report, which he mentioned earlier in the
Board meeting during discussion of the District newsletter matter. Mr. Andrews noted that copies of the complete
survey report had been inadvertently omitted from the Board’s agenda binders,
and that the complete report would be sent to Directors following the Board’s
meeting.
President Hornbuckle called attention to the special note of
invitation at the end of the agenda welcoming all to a reception in the
Boardroom to honor Director Hendrick who is resigning after having served the
Board for 12 years.
INTERVIEWS
President Hornbuckle indicated that Jeffrey Froke, Harold
Morris, and Steve Rhee were present, and that each had submitted an application
for appointment to the PBCSD Board of Directors. The Board President noted that
Patrick Skinner was also a candidate whose background information had been
provided to the Board, but was unavailable for an interview as he was
traveling. President Hornbuckle then invited
each candidate present to give a short oral presentation to the Board,
including responding to two issues: 1) if
and why special district type of governance is a form of governance the
candidate is comfortable operating under; and 2) the candidate’s view of fire
prevention issues within the Forest. Following statements by each candidate and their responses
to questions posed by Directors, President Hornbuckle called for a vote using
pre-printed paper ballots which listed each of the four candidate’s names.
Director Hendrick declined to participate in the vote. The four other directors
present then marked and folded their ballots, and passed them to the Board
President, who asked the General Manager / Secretary to tabulate them and
announce the results. The Secretary
announced that candidate Jeffery Froke had received a majority of directors’ votes. Following discussion, it was agreed that Mr.
Froke would assume office at the next Board meeting, which would allow staff to
provide orientation to him prior to the meeting. President Hornbuckle announced that the paper
ballots used by directors to vote will be retained as public records, and may
be reviewed by anyone interested in knowing how each director had voted in this
matter.
CLOSED SESSION
President Hornbuckle announced the Board would not need to
meet in closed session.
ADJOURNMENT
There being no further business at 11:58 a.m. a motion was
made to adjourn.
MOTION 02-05-04
M/S/C (unanimous) to adjourn to the next regular Board
meeting to be held on Friday, March 25, 2005 at 9:30 a.m. in the District
Boardroom at Forest Lake and Lopez Roads.
(s) Richard Andrews, Secretary