PEBBLE BEACH COMMUNITY SERVICES DISTRICT

BOARD OF DIRECTORS

Regular Meeting of June 24, 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 June 24, 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 

Absent: Richard Verbanec

Others Present

Richard Andrews, General Manager/Board Secretary

Laura Paxton, Board Clerk, Paxton Ad Hoc

George Thacher, Associate Legal Counsel

Suha Kilic, Finance Officer

Michael Niccum, District Engineer

George Haines, Asst. Unit Chief, Local Government Contracts, California

Department of Forestry and Fire Protection (“CDF”), San Benito-

Monterey Counties Unit

John King, Assistant Unit Chief, Administration, CDF

Dennis Carreiro, Fire Prevention Battalion Chief, CDF

Jackie Scoggins, Operations Battalion Chief, CDF

Richard Lopez, Captain, CDF

Cindy Williams, Paramedic, American Medical Response “AMR”

Jack Kidder, President, Del Monte Forest Property Owners (“DMFPO”)

June Stock, Director, DMFPO

John Fisher, Pacific Grove resident

Mark Verbonich, Vice President, Community Affairs,

Pebble Beach Company ("PBCo")

Spencer Thompson, PBCSD resident

Vinod Badani, Regional Vice President, E2 Consulting Engineers

Ray von Dohren, General Manager, Carmel Area Wastewater

District (“CAWD”)

Charlotte Townsend, Director, CAWD

Jean Sawyer, PBCSD resident

Mark Arsenault, General Manager, Carmel Marina Corporation

APPEARANCES AND ORDER OF BUSINESS

There were no additions or changes to the Agenda.

MINUTES

MOTION 06-05-01

It was moved by Director Froke, seconded by Director Laska, and unanimously carried, to approve the minutes of the regular Board meeting held May 27, 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 May 2005.

MOTION 06-05-02

It was moved by Director Laska, seconded by Director Froke, and unanimously carried, to approve the Warrants Register for May 2005.

District Preliminary Budget FY 2005-06

Finance Officer Kilic reviewed the PBCSD Preliminary Budget for Fiscal Year 2005-06. Director Hornbuckle inquired regarding the recalibration of the PBCSD wastewater flow meter at Carmel Way and the flow basis used to determine budget amounts for CAWD treatment plant costs. Mr. Kilic stated that recently flows for the District spiked to 37% of the total CAWD flow from the expected 33% level. Upon recalibration of the flow meter cited in this month’s submitted District Engineer report of operations, it is anticipated that flows may return to 33%. Notwithstanding, the budget has been conservatively prepared based on a mid-point flow of 35%. In response to Director Laska’s inquiry, Mr. Kilic stated that the Quick Response Vehicle (“QRV”) service agreement is on a month-to-month basis and the program will need to be renegotiated with the contracted County ambulance company as of January 1, 2006. Mr. Kilic recommended that until the issue of possible future reallocation of property tax revenues is settled, the board continue to regularly review and monitor its policy regarding the use of property tax revenues to finance a portion of sewer services. Director Laska asked for clarification of the process to be used if the Board decided to raise sewer service fees. Mr. Thacher stated that the Proposition 218 process would probably be required and that a recent California Supreme Court decision on that matter out of Fresno could affect the requirement. Mr. Andrews recommended that the process be followed as a matter of policy due to the likelihood that if property tax revenue was not available a significant user fee increase might be indicated and the Board would want the public to have a thorough knowledge of its considerations in the matter. Director Laska inquired as to why the Proposition 218 process is not followed with respect to garbage collection fee increases as it is with sewer service fee increases. Mr. Kilic stated that the District has always been in compliance with the substantive requirements of Proposition 218 even before the advent of Proposition 218. He said although technically the Proposition 218 procedural process may not be followed separately for garbage collection fee increases with respect to the public notification time-line, the public is notified of the scheduled budget hearing and user fee changes and can comment on increases; this is in compliance with the intent of Proposition 218. Mr. Kilic reported that one Board policy issue involves the Fourth Priority Water Main Replacement Project for fire protection. The District will assess the distribution system and reprioritize lines that may need to be replaced and determine the scope of the project. When the scope is determined, the project will be brought before the Board for a policy determination of whether the project will yield enough fire protection benefit to proceed, or whether it should be tabled. Mr. Kilic responded to various other questions from the Board.

MOTION 06-05-03

It was moved by Director Laska, seconded by Director Froke, and unanimously carried, to adopt Resolution No. 05-11 approving positions, classifications, and pay schedule for fiscal year 2005-06.

MOTION 06-05-04

It was moved by Director Froke, seconded by Director Laska, and unanimously carried, to adopt Resolution No. 05-12 determining the fiscal year 2005-06 property tax appropriation limit to be $11,682,792.

MOTION 06-05-05

It was moved by Director McCullough, seconded by Director Laska, and unanimously carried, to adopt Resolution No. 05-13 approving the preliminary budget for fiscal year 2005-06 and setting a final budget hearing on July 29, 2005 at 9:40 a.m.

FIRE PROTECTION

Fire Chief’s Monthly Report

The Board received and reviewed the monthly fire department operations report for May 2005. Battalion Chief Carreiro responded to questions from directors. Mr. Andrews stated that several thank-you letters in reference to emergency response services rendered were sent in a supplemental distribution to the Board. Director McCullough stated that these types of letters are important in determining the success of the QRV program. Director Froke commented on Battalion Chief Carreiro’s participation on the Open Space Advisory Committee (“OSAC”) and commended him and CDF for their preparation of and revisions to the Fire Defense Plan. Mr. Andrews indicated that he had also forwarded via email to Board members a letter from OSAC Chair, June Stock, commending fire department staff for their work on the Fire Defense Plan.

Monterey County Emergency Ambulance Service Contract Status

Chief Carreiro reported orally that the County Board of Supervisors has instructed Emergency Medical Services Director Leonard Foster to enter into negotiations with WestMed to provide ambulance service within Monterey County. A possible tentative agreement may be reached today and will be presented to the Board of Supervisors for action. Once all terms of the agreement are in order, a six-month implementation process will begin for WestMed to take over emergency response services from American Medical Response (“AMR”) by January 1, 2006, however there are provisions for Carmel Regional Fire Ambulance Authority to function within their jurisdiction serving Carmel-by-the-Sea and Carmel Valley. Mr. Andrews stated that, based on discussions with Fire Chief Mazza, the service area in which PBCSD is located in the new contract will be smaller than the current area, hopefully reducing response times in PBCSD for the new contractor. Director McCullough asked if the current non-emergency provider, Central Coast Ambulance (“CCA”) would be put out of business by the new County contract, and if the new contractor delivering both services will hire CCA drivers. It was Battalion Chief Carreiro’s understanding that WestMed offered to purchase CCA. The offer was declined by CCA and will most likely result in the company going out of business. Director Hornbuckle inquired as to whether anything in the new agreement addressed an effort to improve service. Chief Carreiro indicated that negotiations included some type of sanction for inability to meet the national response standard of eight minutes. Director McCullough asked if the District is able establish its own standard independent of the national standard. Chief Carreiro said stated that the fire department attempts to meet two-to-four minute first responder response time for basic life support service. The Board does have discretion to adopt a standard for the QRV and the standard it adopted is the nationally accepted eight-minute standard for advanced life support services. However, the QRV usually arrives simultaneously with fire department first responders within two to four minutes. Further discussion related to anticipated response times and criteria. Director Laska suggested that the QRV program should continue on the current month-to-month basis for some time after January 1, 2006 and then a comparison should be made after a few months between QRV and ambulance response times to determine the necessity of continuing the QRV program. Director Hornbuckle also suggested negotiations be opened with the new contractor to staff the QRV.

Upcoming Fire Safety Day and Open House

Chief Carreiro reported that final plans for the PBCSD Fire Safety Day and Open House scheduled for July 23, 2005 between 10:00 a.m. and 2:00 p.m. are in place. There were no questions from directors.

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 5/21/05 – 6/15/05. Mr. Niccum stated that the flow meter error was apparently a one-time event caused by a power surge and stated the meter would be monitored and calibrated each month rather than quarterly. Based on the error, the District negotiated with CAWD to consider historical data flows to determine the wastewater discharge percentage for the month. There were no questions or comments from the Board.

Forest Lake Reservoir

The Board received District Engineer Niccum’s memorandum and a slide presentation regarding the Forest Lake Reservoir Project. Mr. Andrews noted that the source of the water at the bottom of the north embankment has been identified as ground water located below the reservoir floor, not water coming through the embankment. He said this has been an issue of some neighbors with homes below the north embankment since Cal-Am Water Company owned and operated the reservoir. The source is a spring within the bed of the reservoir and not water coming through the embankment. Two minor noise and dust complaints from nearby neighbors have been received, and no complaints were brought up at the recent District hosted neighborhood information meeting.

PBCSD Capital Improvement Projects

The Board received and reviewed the District Engineer's monthly status report on capital improvement projects. Slurry seal pavement coating for the Third Priority Water Improvement Project on 17-mile Drive near Bird Rock, Spyglass Hill Road, and Viscaino Road is scheduled for next week. The contractor is nearing completion of work on the Pescadero Canyon Fire Road Improvements Project. There is now a passable fire road from Pump Station P-5 below Sunset Lane to 17-mile Drive across from the entrance to the Carmel Hill Fire Station, providing a second access point available to and from17-mile Drive. There were no questions from the Board.

2005 Sewer Line Replacement Project

The Board received and reviewed the District Engineer's memorandum including a project map of the 2005 Sewer Line Replacement Project. It was reported that three bids had been received ranging between $526,250 and $885,305 for the project, which will utilize pipe bursting technology. Mr. Niccum responded to questions from the Board.

MOTION 06-05-06

It was moved by Director Laska, seconded by Director McCullough, and unanimously carried, to adopt Resolution No. 05-14 declaring the bid of D’Arcy and Harty Construction, Inc. as the lowest responsive and responsible bid and authorizing award of a contract in the amount of $526,250 for the construction of the 2005 Sewer Line Replacement Project.

CAWD Board Meeting

Director McCullough submitted a written report regarding the Carmel Area Wastewater District Board meeting held June 16, 2005. Mr. Andrews stated there was no discussion of the Micro-Filtration/Reverse Osmosis (“MF/RO”) project at the meeting, as due to a substantial increased cost estimate for the project the PBCo had asked that current planning efforts be temporarily suspended. In the meantime, PBCo may be interviewing other possible project consultants to assist CAWD in developing the facilities. The CAWD Board discussed raising sewer user fees again to fully fund costs of services. Mr. Andrews noted that monthly user fees are currently $24.98 in Carmel and $14.62 in Pebble Beach, as PBCSD utilizes some of its discretionary property tax revenue to underwrite the costs of sewer services.

CAWD Meeting Assignment

Director Froke accepted the assignment to attend the CAWD regular Board meeting on July 21, 2005 at 1:30 p.m. in the CAWD Boardroom at 3945 Rio Road, Carmel.

SOLID WASTE MANAGEMENT

Director Laska submitted a written report regarding the meeting of the Monterey Regional Waste Management District (“MRWMD”) held on June 17, 2005. There were no questions or comments from the Board.

GENERAL GOVERNMENT

Current and/or potential state legislation affecting the District

Mr. Andrews submitted to the Board a complete copy and a summary of Senate Bill 135 (Kehoe), the rewrite of the Community Services District Act, which he believed to be essentially in final form prior to its expected adoption by the Legislature. He said one provision removed from the rewrite by the Working Group at its final review meeting was the authority to deliver cable telecommunication services previously held by two to four community services districts and making delivery of those services a general authorized power of all community services districts. The provision was ultimately dropped from the rewrite due to lobbyists for the telecommunications industry objecting and stating they would attempt to kill the entire bill if the provision was included. Mr. Andrews noted that the summary of the bill provided to the Board included a source table providing details and derivation of changes in the rewritten bill. He said the legislative information website is also available for assistance in review of pending legislation.

Mr. Andrews also submitted to the Board a copy of the analysis of Assembly Bill 1234 (Salinas), referred to as the “sunshine in local government” bill. He said that the District already follows or has considered most of the provisions in the bill. The bill would set compensation and expense reimbursement guidelines for elected officials and executive staff. If adopted, a requirement of the District would be to develop a written policy regarding reimbursement of meals and travel. Currently directors are reimbursed for necessary and reasonable costs of travel to attend conferences and training with the policy not formalized in writing. Also, directors of the board and its designated employees would be required to participate in two hours of ethics training every two years. The senate local government committee consultant has suggested a provision be considered for protecting local whistle blowers and employers required to inform employees of existing statutory protection and instructions on how to contact the County Grand Jury and District Attorney if illegal activities are suspected. The bill also includes audit standards for the State Controller to use in evaluating the quality of special district, county, and city audit reports. AB 1234 passed the Assembly and is now in the Senate Local Government Committee and is expected to pass after consideration of suggested provisions. SB 135 has passed the Senate and is in the Assembly, where it is expected to be adopted.

Evaluation of option and costs of supplemental law enforcement service within the Forest

The Board received and reviewed the General Manager’s report regarding the Del Monte Forest Property Owners request that the District assist DMFPO in researching options, costs, and possible implementation of supplemental law enforcement services. In addition, a memo was received from President Hornbuckle regarding his position on the matter. Mr. Andrews suggested a primary goal would be to define methodologies and means for both the PBCSD and DMFPO boards to use as guidance as they work their way through the issue to settle the matter conclusively. President Hornbuckle suggested and sought concurrence of directors to limit District expenditures to fact finding at this point, and that if a community policing survey is utilized it be conducted after the information gathering stage. Director Froke concurred a community survey would be important, but should probably be undertaken after collecting more hard facts. Director Hornbuckle felt that objections would result from a premature survey. Director McCullough expressed the opinion that funding should not be an issue brought before the public, that the District has sufficient discretionary funds to proceed to implement supplemental services and should do so by seeking competitive bids from eligible contractors. She inquired if Mr. Andrews received a copy of a letter she forwarded regarding a resident on Arroyo Drive who recently chased down perpetrators of vandalism who were ultimately charged with committing a crime. Mr. Andrews said that he did receive the letter however did not present it to the Board at this point as it was anecdotal and not pertinent to defining methodologies, which he understood a majority of directors believed should be the current issue before the Board and staff.

Jack Kidder, President, DMFPO Board of Directors, stated that, as indicated in the most recent DMFPO Board meeting, the DMFPO Board has changed direction slightly from a limited broad-brush survey approach to consideration of a comprehensive community policing survey for a cost estimated to be between $5,000 and $10,000. He said his Board had referred consideration of the matter back to the DMFPO Traffic and Safety Committee for further review and recommendation of direction. Mr. Kidder said the issue is a recurring one due in his opinion, to apparent futility felt by property owners who are unhappy with resolutions that have not been forthcoming when they reported incidents to law enforcement agencies. He said this has created a lack of raw numbers for analysis. DMFPO is attempting to do something in response to resident requests and is trying to develop an effort that will be meaningful in determining how extensive the problem is, and to resolve these issues once and for all. It was unclear to Mr. Kidder how to proceed to gather all of the necessary facts in view of some PBCSD directors’ desire to not gather anecdotal information from community residents. Referring to the failed1987 law enforcement service ballot measure in PBCSD, Mr. Kidder said that it was conducted under a different set of circumstances and was a very rigid measure. He said that it was molded as a compromise between PBCSD and DMFPO and when placed on the ballot DMFPO did not support it. He said that the measure asked property owners to pay $200 per parcel for services, a high amount at the time. He urged the Board not to use that measure as an indicator of what people feel the need is today. He encouraged the Board to accept the recommendations presented in the General Manager’s report. Further discussion ensued about data gathering strategy, whether it would be more appropriate to conduct a community survey before, during or after gathering hard data from law enforcement agencies. Options for funding the necessary investigative work and the expensive nature of gathering traffic speed data were also discussed. Mr. Andrews suggested contacting the City of Carmel for use of its radar unit that records vehicle speeds. Responding to questions from the Board, Mr. Kidder suggested the need to conduct fact-finding with an understanding of the weaknesses in the data available and to simultaneously collect information from a community survey, then combine the two information resources for a better picture of the problems and level of need.

MOTION 06-05-07

Moved by Director Laska, seconded by Director McCullough, and unanimously carried, to proceed with the means and methodologies as outlined in the General Manager’s Report dated June 24, 2005, with emphasis on data collection, and to authorize District expenditures of up to $7,500 to support DMFPO in conducting a comprehensive community policing survey.

MISCELLANEOUS INFORMATION AND COMMUNICATIONS

Oral reports from General Manager

Mr. Andrews reminded directors whose terms expire at the end of the calendar year, if they desire to run again they must file with the County Elections Department during the period of July 18 to August 12, 2005. If an incumbent does not file by the deadline, the County automatically extends the deadline through August 17^th. The District will pay for candidate statements included in the ballots.

Questions from Directors or staff seeking clarification of matters within the purview of the District

Director Froke pointed out a possible line-of-sight hazard near the Monterey Peninsula Country Club entrance on 17-mile Drive. Junipers and cypress trees along the curb of the roadway block drivers’ sight of pedestrians approaching the intersection. Director McCullough noted that past Traffic and Safety Committee actions involved line-of-sight issues and that she would notify the committee regarding the intersection concern.

Oral reports or announcements from Board President, directors or staff

Mr. Andrews will be vacationing July 1 through July 11^th.

CLOSED SESSION

President Hornbuckle announced the Board would not need to meet in closed session.

ADJOURNMENT

There being no further business at 12:11 p.m. a motion was made to adjourn. 

MOTION 06-06-08

M/S/C (unanimous) to adjourn to the next regular Board meeting to be held on Friday, July 29, 2005 at 9:30 a.m. in the District Boardroom at Forest Lake and Lopez Roads.

Richard Andrews, Secretary