BOARD OF DIRECTORS
Regular Meeting of April 29, 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 April 29, 2005. Board President Gary D. Hornbuckle called
the meeting to order at 9:33 a.m.
ROLL
CALL
Present: Directors Jeffrey Froke, Gary D. Hornbuckle,
Leo
M. Laska, Nancy D. McCullough, Richard 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
Dennis
Carreiro, Fire Prevention Battalion Chief, CDF
Jackie
Scoggin, Operations Battalion Chief, CDF
George
Haines, Asst. Unit Chief, CDF, San Benito-Monterey Counties Unit
William
Englander, Director, Carmel Area Wastewater District (“CAWD”)
June
Stock, Director, Del Monte Forest Property Owners ("DMFPO")
John
Tormey, PBCSD resident
John
Fisher,
Spencer
Thompson, PBCSD resident
Vinod
Badani, Vice President, E2 Consulting Engineers
Ray von
Dohren, P.E., General Manager, CAWD
Al
Budris, Director, DMFPO, and Chair,
Mark
Stilwell, Executive Vice President, Pebble Beach Company (“PBCo”)
David
Hendrick, PBCSD resident
Jean
Sawyer, PBCSD resident
Paul
Woudenberg, PBCSD resident
APPEARANCES
AND ORDER OF BUSINESS
John
Tormey, PBCSD resident, commended the District and its engineer for the smooth
finishing work on
The
Board received and reviewed a letter from President Jack Kidder, DMFPO, to
President Hornbuckle regarding incidents of crime within the District. In that
regard Al Budris, DMFPO Director and Chair of the DMFPO Land Use Subcommittee
charged with formulating a plan for action in the matter, addressed the Board
stating that the DMFPO Board believes there is significant support among
property owners to address such incidents. Moreover, the DMFPO is cognizant
that the District cannot legally commit funds nor engage additional public
service at this time, and is aware of the implications of SB 135. Mr. Budris
asked that District staff, working in cooperation with the DMFPO members 1)
define the level of need for additional enforcement service, 2) define the
related costs of options, and 3) define the most expeditious manner of
implementing a program that would be most agreeable to constituents. PBCSD
resident Jean Sawyer addressed the Board, stating that flyers have been passed
out to her neighbors encouraging communication and sharing of incidents to
formulate a database of information to determine the level of crime activity.
She will provide this information to the PBCSD Board in the interest of moving
forward with a cooperative effort between property owners, the DMFPO, and the
District. President
Hornbuckle asked if there were any other visitors present who wished to speak
on this or any other matter not listed on the agenda. There were no additional requests to be
heard. Board discussion ensued regarding
the DMFPO request.
Director
Verbanec suggested three tasks that staff could perform to assist the Board
respond to the DMFPO request: 1) determine and define the breadth of support
for additional law enforcement services within the community; 2) define
programmatic options to implement additional services, including goals, costs
and schedules; and, 3) offer recommendations how to implement additional law
enforcement services if it is determined there is sufficient community
support.
Director
Froke indicated that he was pleased to see the interest expressed by the DMFPO
Board in this matter, as he personally has had a long span of interest. He noted that earlier expressions from some
residents seemed to convey maverick sort of voices, and the subsequent comments
from the DMFPO Board appeared to indicate there is now more of a coordinated group
effort. Director Froke said he had
attended a meeting of the DMFPO Neighborhood Representatives Committee at the
Beach and Tennis Club not too long ago during which a number of residents
expressed concerns particularly about vandalism and traffic matters. He said that he had encouraged his neighbors
to keep up with the DMFPO’s consideration of this matter, and now supports
including it as a matter on a future District Board of Directors Agenda for
deeper discussion by PBCSD directors.
Director Laska expressed concern that what had been presented to the
Board was a solution in search of a problem.
In that regard, he said that while he is personally not aware there is a
significant problem, whatever statistical data that can be developed regarding
vandalism, traffic and other related law enforcement issues would help the
Board.
President
Hornbuckle stated that the issue is not a new one, that it is addressed in the
District’s strategic long-range plan. The circumstances involve timing at this
point with the likely advent of SB 135.
He said it is legislation that will re-write the Community Services
District Act, and change the required methodology of board action when new
services are considered. However, SB 135 has not yet passed; if it does, the District
very likely would still require more facts regarding the law enforcement issue,
a lot of public debate and a vote of District residents to enact any added
police authority. He suggested that
District staff do a preliminary study and each director submit a list of
questions (for example, any legal ramifications) and discuss the matter at the
next Board meeting in an effort to understand the underlying issue prompting
the request by property owners for action.
President Hornbuckle said that the Board would not be able to take any
definitive action with regard to the progress report, but would better
understand the issue. The Board
concurred with President Hornbuckle’s
suggestion. Director McCullough requested, due to the extent of changes in
District circumstances from years past, that the previous study done on this
matter not be used for submission to the Board. Mr. Andrews said he understood
the Board discussion as providing a consensus on initial direction for District
staff to proceed and to schedule the matter for an informational progress
report on the next Board meeting agenda on May 27.
There
were no additions or changes to the Agenda.
MINUTES
MOTION 04-05-01
Moved
by Director Laska, seconded by Director Froke, and unanimously carried, to
approve as submitted the minutes of the regular Board meeting held March 25,
2005.
FINANCIAL
MATTERS
Statement
of Receipts and Disbursements
Warrants
Register
The
Board received and reviewed the Statement of Receipts and Disbursements
and the Warrants Register for March 2005. Finance Officer Kilic offered
no changes or additions to the report. Director McCullough inquired as to
whether, in the event the District elects to establish its own banking separate
from the current County arrangement, the administrative fee charged by the
County would be reduced or eliminated. Mr. Kilic stated that the fee is for the
County collection and distribution of property taxes and would continue.
Third
Quarter Budget Report
Mr.
Kilic reviewed orally the Third Quarter Budget Report for Fiscal-Year
2004-05, including recommendations to amend the budget. President
Hornbuckle requested future Board discussion regarding the deviation in the
budgeted amount for the Maintenance Department operating expenditures for CAWD
treatment and disposal service, historically based on an average flow ratio of
33%. The current fiscal year average is approximately 36.5%. Mr. Andrews stated
that it is unknown whether the increase in flow ratio is due to operations
issues such as equipment efficiency, flows now being recorded more accurately,
or other factors. The increase in each percentage point equates to increased
cost to the District in CAWD treatment and disposal services. District Engineer
Niccum indicated wastewater flows are above average this year due to wet
weather, which increases the District’s percentage of total flow because PBCSD
and CAWD have approximately the same length of pipe, so the effect of a similar
increase in inflow and infiltration would have a greater marginal effect on
PBCSD. This situation does not account fully for an increase of 4% in ratio.
The District is striving to achieve as accurate flow records as possible to
correlate the PBCSD flow ratio to flows identified by CAWD.
MOTION 04-05-02
Moved
by Director Froke, seconded by Director Verbanec, and unanimously carried, to
approve the Third Quarter Budget Report for Fiscal-Year 2004-05 with
recommended budget amendments.
MOTION 04-05-03
Moved
by Director Verbanec, seconded by Director Laska, and unanimously carried, to
approve the Warrants Register for March 2005.
RFP for Banking Services
Mr. Kilic reviewed orally his Finance Officer’s Report regarding a
request for proposal from banks to process District checks. Director Hornbuckle
expressed the view the Request for Proposal procedure was elaborate for the
services sought. Mr. Andrews concurred, but stated that the process is
necessary to avoid any possible appearance of conflict of interest that might
arise from District staff’s personal banking relationships. Mr. Kilic confirmed
that the current District finance software and hardware will readily
accommodate a change in the banking process; the ordering of new checks is all
that is needed. Accountability and security levels would be maintained and the
efficiency and flexibility that will be achieved by eliminating the County’s
check approval process make the change advisable.
MOTION 04-05-04
Moved by Director McCullough, seconded by Director
Laska, and unanimously carried, to approve the Request for Proposal to
obtain banking services from banking institutions, including establishment of
checking accounts.
County Treasurer’s Report
The Board received the submitted Monterey County Treasurer’s
Report of Investments for quarter ending March 31, 2005. Directors and staff discussed investment
strategies undertaken by the County on the District’s behalf, subsequent effect
on the District’s budget and took no action concerning this matter.
FIRE PROTECTION
Fire
Chief’s Monthly Report
The
Board received and reviewed the monthly fire department operations report.
Battalion Chief Carreiro indicated that he had attended a wildland urban
interface planning conference. He stated that new legislation addresses
interface issues such as the minimum area of vegetative clearing required
around structures, however no implementation direction has been given from CDF
state headquarters to the local operations level. Operational information
relating to the new vegetation clearance requirements will be available in the
near future and then local stakeholders such as the Del Monte Forest Open Space
Advisory Committee will be briefed He
said scientific techniques will be used for a zone approach in establishing
parameters for clearances, slopes and construction to reduce fire risks at the
forest/development interface. He noted
also that the annual fire inspection letter to residents will be mailed this
week as part of the Fire Defense Plan, and that it will include information
related to the new legislation.
Operations Battalion Chief Scoggin and Prevention Battalion Chief
Carreiro responded to questions from the Board. They indicated that the
extended heavy rainfall period will have an indirect affect on the District;
higher fuel loads create extreme fire hazard conditions in other areas of the
state resulting in available CDF personnel being called out of the area to
battle resulting fires elsewhere. District conditions are usually less
explosive due to the cool, moist marine environment. The need for public
education is heightened during periods of increased fuel loads that result from
wet periods.
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 3/16/05 –
4/20/05. District Engineer Niccum reported orally on a sewer overflow that
occurred on the Monterey Peninsula Country Club Dunes Course near the
intersection of Stevenson Drive and Old 17-Mile Drive when a tree branch fell,
pierced an underground clay sewer line and sewage overflowed to Sawmill Gulch
Creek. No environmental damage occurred
at the ocean, and the beach was closed a number of days while the Health
Department waited to take samples to avoid any contamination of the samples by
recent heavy rains.
Director
Hornbuckle again noted the increase in the difference between the District
wastewater flows as compared to
District Engineer Niccum reviewed orally his
memorandum with an attached preliminary project schedule and presented
photographic slides regarding the status of the Expanded CAWD/PBCSD Wastewater
Reclamation Project Forest Lake Component. Mark Stilwell, Executive Vice
President, PBCo inquired as to why the
Mr. Stilwell reported that $16 million in water sales
have closed and that approximately 30 acre-feet of water were left to sell;
buyers are pulling permits from the Monterey Peninsula Water Management
District (“MPWMD”). Mr. Vinod Badani, Vice President, E2 Consulting Engineers,
estimated reservoir construction completion at approximately 10%; the estimated
date of substantial completion is November 2005. Treatment plant construction
substantial completion is scheduled for February
2006.
The Board received a fully executed copy of the
Supplemental Financial Commitment pursuant to Sections 3.2 and 3.3 of the
Supplemental Financing Agreement between MPWMD and PBCo, in the form approved
by Monterey Peninsula Water Management District.
PBCSD Capital Improvement Projects
The Board received and reviewed the District
Engineer's monthly status report on capital improvement projects. In response
to Director Verbanec’s question, Mr. Niccum stated that the pavement in the
trench lines of the 17-mile Drive section of the third priority water system
improvements project is temporary and will be removed before final paving.
The Board received and considered a memorandum from
the District Engineer regarding the 2005 Sewer
Line Replacement Project. Mr. Niccum
summarized the scope and budget estimate for the project. There were no questions or comments from
directors.
MOTION 04-05-05
Moved by Director Laska, seconded by Director
Verbanec, and unanimously carried, to approve the plans and specifications for
construction of the 2005 Sewer Line Replacement Project and authorize an
invitation to bidders.
Director
Verbanec reported orally regarding the Carmel Area Wastewater District Board
meeting held April 21, 2005. The terms of two CAWD directors, Ken White and
Robert Kohn, will expire at the end of this year. CAWD general manager, Ray von Dohren, advised
the CAWD Board about legislation which would prohibit the importation for
disposal of biosolids or sludge in Kern County If similar legislation is adopted
to apply throughout the Central Valley counties, CAWD might not be able to
contract any longer with the hauler that takes the CAWD material for disposal.
The wastewater and treatment industry as a whole is engaged in a substantial
amount of
In
response to Mr. Tormey’s question about the status of the advanced treatment
component of the Expanded Reclamation Project, Mr. Andrews indicated that CAWD
and PBCo are still working through budgetary requirements. As a result, that
component of the Project has not progressed to final design and will not
continue to proceed at the same pace as the
Director
Hornbuckle accepted the assignment to attend the CAWD regular Board meeting on
May 19, 2005 at 1:30 p.m. in the CAWD Boardroom at
SOLID WASTE MANAGEMENT
Director Laska submitted a summary of the meeting
of the Monterey Regional Waste Management District (“MRWMD”) held on April 15,
2005. In reference to item 2, Director Laska noted the five-year lease-purchase
of a bulldozer as a creative financing alternative to spread a large capital
cost over five years.
GENERAL GOVERNMENT
The Board received and reviewed the General Manager’s
Report regarding the District newsletter. Mr. Andrews stated that the report
memorializes discussion on the matter and presents an estimated annual
budget. There were no questions or
comments from directors.
MOTION 04-05-06
Moved by Director Verbanec, seconded by Director
McCullough, and carried, with Director Laska opposing, to approve the policies and
objectives described in the General Manager’s Report dated April 29, 2005, for
the implementation of a District newsletter with an annual publication budget
of $15,000.
Senate Bill 135 (Kehoe)
The Board received and reviewed the Senate Local
Government Committee Critique of Senate Bill 135 (“SB 135”) dated April 14,
2005, a copy of the bill as amended March 29, 2005, and letters authored by
President Hornbuckle and General Manager Andrews to Senator Christine Kehoe in
support of the Bill. Mr. Andrews stated that the Bill passed out of the Senate
Local Government Committee by a unanimous vote, has been referred to the Ways
and Means Committee and will then proceed to the Senate floor. Mr. Andrews said
some of the most important revisions to the Community Services District Act
encompassed in SB 135 will allow district boards, following approval of the
Local Agency Formation Commission, to enact certain latent powers following a
public hearing on the issue at hand, and without scheduling an election of
district voters on the matter. Depending
on the degree of opposition, the board can approve the new service, modify the
proposal, or drop it. He said the
legislation requires that if a petition signed by 10% of the registered voters
who voted in the last gubernatorial election is filed in opposition to the
proposal, it must be dropped, modified or voted on in the next district
election. He pointed out that regardless of whether the Board approves a new
service, if it requires additional financing the assessment or tax would
require a vote of the District’s electorate.
Following discussion, there was consensus among directors that while SB
135 would make few substantive changes to the Community Services District Act
it would improve governance by making it easier for the public, board and staff
of the district to understand its provisions.
MOTION 04-05-07
Moved by Director Verbanec, seconded by Director
McCullough, and unanimously carried, to adopt Resolution 05-09 supporting
Senate Bill 135 (Kehoe) revising the Community Services District Act.
General District Election
The Board received and considered a report from the
General Manager indicating that three directors’ terms of office would expire
on December 2, 2005 and that the Board should call for a general district
election on November 8, 2005 to elect directors to four-year terms of office.
The directors whose terms will expire are Jeffrey Froke, Nancy McCullough and
Richard Verbanec. Mr. Andrews called the
Board’s attention to the submitted
MOTION 04-05-08
Moved by Director Verbanec, seconded by Director
Laska, and unanimously carried, to adopt Resolution 05-10 calling for a
general district election within PBCSD on November 8, 2005 to elect three
directors to four-year terms of office, determining length of and authorizing
payment for candidate statements.
Mr. Kilic reviewed orally his report to the Board
regarding the decrease in the workers compensation insurance rates of the
District’s carrier, Association of California Water Agencies Joint Powers
Insurance Authority (“ACWA JPIA”). He said in addition to lower rates for all
ACWA JPIA members, PBCSD achieved further savings due to its lower than average
loss experience over the past three 3 years. In response to Director Laska’s
question he said liability insurance rates are based on payroll, not size of
the assets.
The Board received and reviewed a letter from the ACWA
JPIA regarding risk assessment of District operations, which was
conducted on March 8, 2005. The assessment included favorable findings, which
reinforce the District staff’s conclusion as to factors that are contributing
to the District’s lower workers compensation and liability insurance costs.
Oral reports from General Manager
There were no oral 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 that he would be attending the ACWA JPIA Board of Directors
conference next week in San Jose as PBCSD’s JPIA Board member and the
California Special District Institute Governance Academy; the former for two
days in May and the latter for two days in June. Regarding the CSDA Government
Affairs Day, Mr. Andrews clarified that it was an event used by the CSDA to marshal
many of iits members in
one place to review legislation and then to cross the street and lobby
legislators in the Capitol.
Director
Froke thanked Mr. Andrews and staff for an outstanding orientation given April
18th.
Mr.
Andrews reported that he had attended the quarterly meeting of the Monterey
County Special Districts General Managers. The LAFCO Executive Officer reported
that the organization would be completely independent of the County in June.
The director of the Transportation Agency of Monterey County reported a measure
to increase the county sales tax by one-half cent is proposed to be placed on
the next countywide ballot as part of a 14-year road and transportation
improvement plan. He said twelve incorporated cities have adopted resolutions
in support of placing the measure on the ballot.
CLOSED
SESSION
President
Hornbuckle announced the Board would not need to meet in closed session.
ADJOURNMENT
There
being no further business at 11:55 a.m. a motion was made to adjourn.
MOTION 04-05-09
M/S/C
(unanimous) to adjourn to the next regular Board meeting to be held on Friday, May 27, 2005 at 9:30 a.m.
in the District Boardroom at Forest Lake and Lopez Roads.
(s) (s) Richard
Andrews, Secretary