PEBBLE BEACH COMMUNITY SERVICES DISTRICT

BOARD OF DIRECTORS

Regular Meeting of December 9, 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 December 9, 2005. Board President Gary D. Hornbuckle called the meeting to order at 9:41 a.m.

 

ROLL CALL

Present:      Directors Gary D. Hornbuckle, Leo M. Laska, Richard Verbanec, Gerald Verhasselt, Jeffrey Froke

 

Others Present

Richard Andrews, General Manager/Board Secretary

Laura Paxton, Board Clerk, Paxton Ad Hoc

Robert Wellington, Legal Counsel

Suha Kilic, Finance Officer

Michael Niccum, District Engineer

Jackie Scoggin, Operations Battalion Chief, CDF

Sam Mazza, PBCSD Fire Chief/California Department of Forestry and Fire

          Protection (“CDF”), San Benito-Monterey Unit

George Haines, Asst. PBCSD Fire Chief/Asst. Chief, CDF San Benito-Monterey Unit

Jackie Scoggin, Operations Battalion Chief, CDF

Dennis Carreiro, Prevention Battalion Chief, CDF

Nancy McCullough, PBCSD resident/retired PBCSD Board member

Rick Kernoll, PBCSD resident

John Fisher, Pacific Grove resident

Mark Verbonich, Vice President, Community Affairs, Pebble Beach Company

("PBCo")

John Tormey, Pebble Beach resident

Spencer Thompson, PBCSD resident

Bill Englander, Director, Carmel Area Wastewater District ("CAWD")

Ray von Dohren, CAWD General Manager

 

SWEARING - IN OF DIRECTORS

PBCSD Board President, Gary Hornbuckle administered the oath of office to swear-in PBCSD Directors Jerry Verhasselt and Jeffrey Froke for four-year terms of office and Richard Verbanec for a two-year term of office.

 

APPEARANCES AND ORDER OF BUSINESS

There were no additions or changes to the Agenda.

 

MINUTES

 

MOTION 12-05-01

 

It was moved by Director Laska, seconded by Director Verbanec, and unanimously carried, to approve as submitted the minutes of the regular Board meeting held October 28, 2005.

 

FINANCIAL MATTERS

Statement of Receipts and Disbursements

Warrants Register

The Board received and reviewed the Statement of Receipts and Disbursements and the Budget Report for October 2005, and the Warrants Register for October and November 2005. Mr. Kilic reviewed the changes in the format of the District’s monthly financial report. Previously, the District activities were presented in two main categories: the Operations Fund and Capital Outlay Fund. He said the monthly report is an internal document allowing flexibility in format, and is now designed to conform to the District’s audited annual financial statements. Pursuant to a recent rule by the Government Accounting Standards Board (“GASB”) that sets accounting standards applicable to the District’s accounting and financial reporting, the District staff has chosen to report financial transactions separately for the District’s various activities.  “Business-type activities” are wastewater collection and treatment, solid waste collection, and wastewater reclamation.  “Governmental activities” are fire protection and emergency medical services.  And, “general government”, includes the District’s administration and engineering services. Mr. Kilic responded to questions from the Board.

 

MOTION 12-05-02

 

It was moved by Director Verbanec, seconded by Director Laska, and unanimously carried, to approve the Warrants Register for October and November 2005.

 

Monterey County Treasurer’s Investment Report

Mr. Kilic orally summarized the submitted Monterey County Treasurer’s Report of Investments for the quarter ending September 30, 2005. In response to a question from Director Laska, Mr. Kilic stated that at its September meeting the Board authorized staff to create a custom portfolio with $7 million of District reserves. Within the last few days, $2.5 million of that authorized amount was committed for a bond issued by Federal Home Loan Bank. The coupon is 5% with maturity in 18 months. The 5% rate is approximately 1.5% over the current yield of the County Treasurer’s regular pooled portfolio.  Mr. Kilic noted that although the investment has a higher yield, it is a callable bond and could be redeemed in the future if rates drop.  He said the District expects to invest the rest of the authorized amount around January or February. Mr. Kilic responded to further questions.

 

FIRE PROTECTION

Fire Chief’s Monthly Report

The Board received and reviewed the monthly fire department operations report for October 2005. Chief Haines updated the Board as to the investigation of a medical aid call from Pebble Beach Lodge in October that was not relayed by the Monterey County dispatch center to the PBCSD Fire Department. The investigation could result in disciplinary action of County dispatch personnel by the operations supervisor. It was further discovered that when AMR dispatched the ambulance, they decided that the Carmel Regional Fire Ambulance located in Carmel city would be closer and that ambulance had difficulty finding the patient, which compounded the mishandled call. All that is known of the patient is that he did eventually get treatment and was transported. The County Administrative Officer, on this and other complaints of various fire agencies, has directed an audit of the dispatch center. Those findings will be reported to the Board by Fire Department staff. Chief Haines, in response to Director Verbanec’s comments, stated that commencing with the new county ambulance contract services on January 1, 2006, the contractor must have a global positioning system for locating calls. Carmel Regional Fire Ambulance may or may not have that system. Chief Haines responded to questions from the Board.

 

Automated Community Emergency Notification System

Mr. Kilic reviewed orally the submitted Finance Officer’s Report regarding implementation of Reverse 9-1-1® automated community notification system and its underlying technology. He said the system will allow the District to contact residents by phone to provide emergency and non-emergency information. The computer and the data, including phone numbers, call lists, property information and maps required for the system, will be located on-site and managed in-house. Mr. Kilic said the District and the Reverse 9-1-1 Company will enter into a non-disclosure agreement with SBC, the local phone company, to obtain all land line phone numbers within the District as well as monthly updates. Mr. Andrews noted that the Information Technology Coordinator (District Finance Officer) conducted the technical research after the Fire Department took the initiative to identify the system. Chief Haines advised the Board that he recognized the need for such a system during the Kirk Fire in Los Padres National Forest in 1999. Evacuation was anticipated and past practices were inadequate (i.e., news or radio broadcasts). Reverse 9-1-1® was investigated and, although determined to meet the needs of evacuation procedures, was cost prohibitive for Monterey County; the County is currently seeking grant funding for a notification system and most likely will not be prepared to implement for a year or more. A major problem during the 1987 Huckleberry Hill fire was getting information to the residents; patrol cars with loud speakers were used in an attempt to relay information to residents. The 1999 Presidio Fire had numerous residents calling the administrative offices inquiring as to the status of the fire. A system such as what is proposed would better notify residents in these types of situations. Director Verhasselt noted that, as Chair of the DMFPO Neighborhood Representatives, this type of a system has been asked for by residents. In response to his question, Mr. Kilic stated that a message recorded by designated staff could be sent out via the computer system to target residents. Further, he stated that the quotation presented by Reverse 9-1-1® covers 3 years with maintenance and upgrades included; subsequent maintenance would continue at an as yet undetermined cost. In response to Director Laska’s question, Mr. Kilic stated that he did not know if emergency notification calls override calls in progress by residents. He noted that the system has a Reverse 9-1-1® corporate initiated mass-call option which would be used if the District’s phone lines were temporarily out of order, or if speed was a critical issue. Director Verbanec recalled that SBC maintains dedicated lines for emergency notification and requested that information on the availability of these phone lines be obtained from SBC. Chief Carreiro pointed out that by use of virtual private network (“VPN”) computer technology, the emergency notification system can be accessed remotely by any authorized staff via a laptop computer and a cellular phone link. Moreover, the Reverse 9-1-1® system interactive capability allows residents to indicate which of their phone lines is designated for emergency purposes. In response to a question from Nancy McCullough, Chief Carreiro stated that private phone numbers are obtained from a list provided by SBC with any required privacy agreements assigned. In response to Director Laska’s question, Mr. Kilic said that he and Mr. Atila, the District’s Information Systems Technology Consultant, will lead the operations and administration of the system. Up to 5 members of fire department and administrative staff will be trained and authorized to run the system in the event of an emergency. Mr. Andrews stated that staff would come back to the Board with a series of progress reports and suggested the Board exercise oversight of the project management plan including issues of privacy to insure that staff is using the information in a way that best protects the privacy of the residents and any issue of leadership to insure that the system is used in appropriate situations. Moreover, the actual contract between the District and the vendor could be presented to the Board prior to assignment. President Hornbuckle requested, and the Board concurred, that District staff proceed directly with acquiring and implementing the Reverse 9-1-1® system and bring back to the Board any policies proposed to be put in place upon development and implementation of the project.

 

MOTION 12-05-03

 

It was moved by Director Verbanec, seconded by Director Verhasselt, and unanimously carried, to authorize implementation of an automated community notification system and approve acquisition of necessary software and equipment proposed by “Reverse 9-1-1” for an initial cost of $38,569.45, and, annual software upgrade, training and technical support fees of $6,628.00, for the second and third years of ownership.

 

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 10/22/05 – 11/30/05.  A chart is included in the report summarizing the first 11 years of the Reclamation Project water usage on an annual basis, which provides an overall view of water demand over the life of the Reclamation Project operations.

 

Forest Lake Reservoir

The Board received District Engineer Niccum’s memorandum regarding the status of the Forest Lake Reservoir Project. Mr. Niccum stated that the critical item in project scheduling remains installation of the gates in the outlet tower. After testing, it is estimated that all will be in place and operational to allow filling of the reservoir to begin at the end of January. Mr. Niccum presented slides of the project and answered questions from the Board. Director Laska noted the safety hazard potential of the reservoir environment. Mr. Andrews urged the Board to keep abreast of safety issues and staff actions to insure the safest environment possible. In response to Director Hornbuckle’s concerns, Mr. Niccum stated that security fencing would be completed in the next 1-1/2 weeks. The contractor posted security officers at the site over the Thanksgiving holiday weekend because the contractor is responsible for damage to project improvements until project completion.  Staff is reviewing options to address life safety and security issues including installation of ropes at regular intervals on the internal embankment of the reservoir, rescue rings along the perimeter of the reservoir, warning signs posted on the perimeter fencing and the feasibility of a security camera system for the area; and will coordinate with the Fire Department for safety operations planning.

 

PBCSD Capital Improvement Projects

District Engineer Niccum reviewed orally the District Engineer's monthly status report on capital improvement projects. A preliminary engineering study is planned to determine the scope of the next priority water pipeline replacement project for Board approval prior to beginning final design of the project. The study will identify the highest priority lines and the expected fire flow improvement.  Only two segments of the new looped water line located near the Monterey Peninsula Country Club clubhouse have been completed in the current Third Priority Fire Protection Water Pipeline Replacement Project.  An updated schedule for completing the looped water line will be presented at the next Board meeting. Forest Lake Reservoir project improvements will be integrated with the District SCADA system.

 

CAWD Board Meeting

Mr. Andrews attended the Carmel Area Wastewater District Board meeting held November 17, 2005 and made an oral report to the Board. He said outgoing Director Nancy McCullough attended and bade farewell to CAWD directors and thanked them for their assistance during her term of office. Mr. Andrews indicated CAWD staff reported treatment plant operations were routine for the previous month. He said the CAWD Board asked for clarification of the reasons for the analysis of water collected from under the north embankment of Forest Lake Reservoir while the reservoir is empty. He said that he advised them that PBCSD wanted to establish the quality of the embankment water source to differentiate the ground water from recycled water that may be collected from any future liner leaks. The CAWD General Manager reported that he received permission from PBCo to proceed with the entire design of the advanced treatment facilities. He remarked that 17 weeks were lost due to the project being put on hold by PBCo. The Highlands Sewer Extension Project is finished and has been operational since November 16th.  It serves a relatively small area of the Highlands, including the Highlands Inn, Tickle Pink Inn and a dozen or so homes in Wildcat Canyon. The CAWD Board made appointments to its standing committees and appointed officers of the Board: Ken White - President, Bill Englander - Vice President, Faye Webb - Secretary, and Barbara Buikema - Finance Officer/Secretary Pro-Tem. The District will pay 100% of CalPERS pension contributions for its employees. Mr. Von Dohren reported that the ocean outfall maintenance work has been completed and the District is looking into how often the line should be maintained in the future.  Mr. Andrews said that CAWD staff has determined that marine growth on and around the outfall pipe is prolific and has resulted in increased maintenance costs.  The Forest Lake Reservoir will decrease the flow through the outfall pipe in the long run; however, the volume difference will not affect maintenance requirements on the outfall since it will be necessary to run water though the pipe occasionally anyway. Mr. Andrews expressed the opinion that the Forest Lake Reservoir Project is a win/win project due to the decrease in the amount of water discharged to Carmel Bay along with significant conservation of potable water.

 

CAWD Meeting Assignment

Director Verbanec accepted the assignment to attend the CAWD regular Board meeting on Thursday, December 15, 2005 at 1:30 p.m. in the CAWD Boardroom at 3945 Rio Road, Carmel.  It was noted, also, that Director Froke was scheduled to attend the CAWD Board of Directors meeting scheduled for January 19, 2006 (subsequently changed by the CAWD Board to January 26, 2006).

 

Reclamation Management Committee meeting

The Board reviewed the submitted memorandum regarding the November 10, 2005, Reclamation Management Committee (“RMC”) meeting. In response to Director Laska’s request for clarification, Mr. Niccum stated that his understanding of Mark Stilwell’s comment regarding the 40 acre-feet of potable water potentially available to areas outside of Pebble Beach is a result of most of the demand in the Pebble Beach residential water sales market being satisfied.  Total water sales of 145 acre-feet are allowed by the Monterey Peninsula Water Management District. In response to a question concerning RMC officers, Mr. Andrews stated that the RMC operates in a collegial manner with no chair, using a facilitator for its business meetings.

 

SOLID WASTE MANAGEMENT

Director Laska submitted a written report regarding the meeting of the Monterey Regional Waste Management District (“MRWMD”) held on November 18, 2005 and answered a question from the Board.

 

GENERAL GOVERNMENT

Nancy D. McCullough Commendation for Service

President Hornbuckle read aloud Resolution No. 05-24 commending Nancy D. McCullough for service to PBCSD. The document will be framed and presented to Ms. McCullough at a later date.  President Hornbuckle announced that a reception in the Boardroom would follow the meeting and indicated that any visitors to Board meeting would also be welcome to attend the reception.

 

MOTION 12-05-04

 

It was moved by Director Laska, seconded by Director Verhasselt, and unanimously carried, to adopt Resolution No. 05-24, a resolution commending and expressing appreciation to Nancy D. McCullough.

 

Del Monte Forest Property Owners (“DMFPO”) evaluation of supplemental security measure needs

Mr. Andrews reported that the DMFPO President has established a calendar of review for the Community Survey on Traffic and Safety Issues in Del Monte Forest. Submitted is the Summary of Preliminary Results of that survey and an e-mail from Dr. Jan Roehl, Justice Research Center, to Mr. Andrews with an update on the survey results. Mr. Andrews stated that some of the survey responses included requests for use of electronic monitoring devices for traffic control. Mr. John Tormey, Pebble Beach resident and a DMFPO survey Blue Ribbon Committee member, discussed the significance of Senate Bill 135 and the authority given the District to implement enhanced law enforcement with only the Local Agency Formation Commission’s approval; no public vote necessary. Director Verbanec noted that although the rules have changed in regard to SB135, the District must still get substantial public approval before proceeding on this issue. Mr. Andrews stated that it will be a Board policy decision whether or not to go to a vote on the issue. Moreover, it is important to be aware that if another entity is to provide enhanced law enforcement services (i.e., Monterey County Sheriff’s Office), the District must go to that entity to get its approval prior to proceeding.

 

Safety Committee Meeting

The Board reviewed the submitted Safety Committee Meeting Minutes of November 3, 2005. There were no questions or comments from the Board.

 

Revision of District Administrative Code Regarding Expense Reimbursement Policy

Mr. Andrews stated that the proposed resolution revises the District’s Administrative code to conform to the requirements of the recently adopted Assembly Bill 1234 regarding expense reimbursement for elected governing board members and designated District employees.  He said the resolution would formally adopt much of what has already been informal District policy, but also add some new policies required by AB 1234.  For example, there is now a requirement for a commitment to specific lodging rates and charges either developed internally or as listed in IRS Bulletin 463. Mr. Andrews said he expected there will be model policies that will be offered by agencies such as the Association of California Water Agencies or the California Special Districts Association. However, the staff’s goal is to allow the District and its Board to be in a position of having PBCSD’s rules in effect as of the date of the new legislation – January 1, 2006. From a policy standpoint, the Board may desire to set up different per diem rates or rates of reimbursement than what are currently included in IRS policy. Mr. Andrews then reviewed specific requirements listed in AB 1234. He suggested that staff bring the District policy back to the Board once model policies are available in the spring or summer and, if the Board wishes, it can further update the expense reimbursement policy at that time.

 

MOTION 12-05-05

 

It was moved by Director Verbanec, seconded by Director Verhasselt, and unanimously carried, to adopt Resolution 05-26 revising District Administrative Code and applicable Resolutions No. 93-12 and No. 8-84 to comply with AB 1234 relating to the District’s compensation and expense reimbursement policy.

 

Election of District Officers

The Board received and reviewed a report and proposed resolution prepared by the General Manager, which provided background information regarding the duties of District officers that, pursuant to policy, should be selected annually by the Board.  President Hornbuckle asked directors to consider their preferences.  Discussion ensued.

 

MOTION 12-05-06

 

It was moved by Director Laska, seconded by Director Verhasselt, and unanimously carried, to adopt Resolution 05-25 electing President Gary Hornbuckle, Vice President Richard Verbanec, General Manager Richard Andrews to serve, ex-officio, as District Secretary, and Finance Officer Kilic to serve, ex-officio, as District Secretary Pro-Tem and Treasurer, for calendar year 2006.

 

 

MISCELLANEOUS INFORMATION AND COMMUNICATIONS

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 the Board or staff.

 

Oral reports or announcements from Board President, directors or staff

There were no oral reports or announcements.

 

CLOSED SESSION

At about 11:20 a.m., President Hornbuckle announced the Board would meet in closed session to conduct the Board’s annual performance evaluation of the General Manager and District Legal Counsel.  He said the evaluations would be conducted as per the General Manager’s outline of the Board’s past procedures; and, unless there were questions from directors or others there would be no need for discussion of the procedures in open session.

 

At about 12:05 p.m. the Board reconvened to open session and President Hornbuckle reported that directors had conducted performance evaluations of the General Manager and Legal Counsel.  He said directors took no other action on matters in closed session listed on the agenda. President Hornbuckle indicated that pursuant to the Board’s past practice, following a satisfactory annual performance evaluation, a salary adjustment for the position of General Manager would be considered by the Board.  He suggested that a motion would be in order for a cost-of-living adjustment the same as authorized for all other District employees at the beginning of the fiscal year.

 

MOTION 12-05-10

 

It was moved by Director Laska, seconded by Director Verbanec and unanimously carried to provide a cost-of- living increase of 1.9% in the salary of the General Manager, retroactive to July 1, 2005.

 

 

ADJOURNMENT

There being no further business at 12:07 p.m. a motion was made to adjourn. 

 

MOTION 12-05-07

 

M/S/C (unanimous) to adjourn to the next regular Board meeting to be held on Friday, January 27, 2006 at 9:30 a.m. in the District Boardroom at Forest Lake and Lopez Roads.

                          

                                                                   (s) Richard Andrews, Secretary