PEBBLE BEACH COMMUNITY SERVICES DISTRICT

BOARD OF DIRECTORS

Regular Meeting of January 27, 2006

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 January 27, 2006. Board President Gary D. Hornbuckle called the meeting to order at 9:35 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, Fire Chief, California Department of Forestry and Fire

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

George Haines, Asst. Unit Chief, CDF, San Benito-Monterey Counties Unit Jason Kimpton, Fire Apparatus Engineer, CDF

      Nancy McCullough, Member, DMFPO Traffic/Safety Committee   

      John Fisher, Pacific Grove resident

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

("PBCo")

John Tormey, Pebble Beach resident

Temple Elliott, Pebble Beach resident

Pat Skinner, Director, DMFPO

Spencer Thompson, Member, DMFPO Traffic/Safety Committee

Dr. Jan Roehl, Justice Research Center

Jim Nero, Director, DMFPO

Al Budris, Director, DMFPO

Jack Kidder, Director, DMFPO and Chair, DMFPO Community Survey on Traffic and Safety “Blue Ribbon” Committee

Vinod Badani, Vice President, E2 Consulting Engineers

Ken White, Director, Carmel Area Wastewater District (“CAWD”)

Ray von Dohren, P.E., General Manager, CAWD

June Duran Stock, Member, Del Monte Forest Open Space Advisory                                                                              Committee

Kimberly Caneer, Pebble Beach Resident, Pescadero Canyon

 

 

APPEARANCES AND ORDER OF BUSINESS

There were no additions or changes to the Agenda.

 

MINUTES

Director Verbanec inquired whether page 8, the last sentence of the first paragraph, was worded correctly: “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.” Mr. Andrews confirmed those were the words he stated at the last meeting, however, he was unable to find that wording in the final version of the rewritten Community Services District Act as recently adopted. Mr. Andrews, as a member of the Community Services District Act Legislative Re-write Committee at the time, stated he has mentioned this requirement to the Board in the past as he felt it was in the law based on discussion and emphasis by the Committee to include this requirement during the re-write of the Act.

 

MOTION 01-06-01

 

Moved by Director Verbanec, seconded by Director Verhasselt, and unanimously carried, to approve the minutes of the regular Board meeting held December 9, 2005.

 

FINANCIAL MATTERS

Statement of Receipts and Disbursements Warrants Register

 

The Board received and reviewed the Statement of Receipts and Disbursements for November and December 2005 and the Check Register for December 2005. Mr. Kilic noted the addition of page 1 to the monthly report showing the District’s cash balances, receipts and disbursements displayed separately for each of the two current depositories: Monterey County Treasurer and First National Bank. The District has recently established a checking account with First National Bank for which Mr. Kilic serves as Treasurer. The new page has been added to maintain separate accountability for the two depositories.  Mr. Kilic reviewed orally the monthly financial reports submitted. Property tax allocations for the current fiscal year will be reduced by $848,000, that amount shifted to the State pursuant to Proposition 1A. The shift of property tax to the State will end next fiscal year, and the District can expect to see an increase in property tax revenue of $848,000 in fiscal year 2006-07.

 

MOTION 01-06-02

 

Moved by Director Verhasselt, seconded by Director Verbanec, and unanimously carried, to approve the Check Register for December 2005.

 

 

Mid-year Budget Report for fiscal year 2005-06

Mr. Kilic summarized that the District’s accounting system is a cash basis system and monthly financial reports including a budget report are presented on that basis. Therefore, the regular monthly reports do not include  costs of services and materials which may have been received but not yet paid for; and revenues which may have been earned, but not yet received. Consequently the reports present the District’s financial position monthly, but not necessarily its economic position. To present the District’s economic position, staff prepares annual financial statements as of the last date of each fiscal year prepared on an accrual basis. In addition to the annual financial statements, twice a year the staff presents internal accrual-basis reports; one as of December 31st (middle of the fiscal year), and the second as of March 31st (the end of the first quarter). The mid-year Budget Report presented today includes revenues and expenses accrued to the extent they have been identified in order to provide a more comprehensive budget to actual comparison. Mr. Kilic reviewed orally the highlights of the report. The District has received approximately $6.5 million in reimbursements, primarily from the Wastewater Reclamation Project through PBCo’s water entitlement sales for the Forest Lake Project. PBCo, especially Mr. Mark Stilwell, has been very cooperative in processing the District’s reimbursement requests in a very timely manner. In response to Director Laska’s question, Mr. Kilic stated that the amount of reimbursements projected in the budget was a conservative estimate due to the unknown project completion status of Forest Lake Reservoir when the budget was developed at the beginning of the fiscal year; the budgeted reimbursements do not necessarily reflect the actual outstanding amount. It is estimated that actual reimbursements for the remaining fiscal year will be approximately $2 million, including a 10% retention withheld from the construction contract. The ratio of the District’s wastewater flow to the total treatment plant inflow averaged at 32% over the last six months, approximately 3.5% less than the previous year. The District’s wastewater treatment and disposal cost is calculated based on this ratio. The changes in inflow may be attributed to the recent calibration of the District’s flow meter. There were no further questions from the Board.

 

FIRE PROTECTION

Fire Chief’s Monthly Report

The Board received and reviewed the monthly fire department operations report for November and December 2005. Chief Scoggin had nothing further to add to the reports. Director Verbanec inquired whether there was anything further on the fires reported occurring under suspicious circumstances. Chief Scoggin stated there is nothing further on these incidents. In response to Director Froke’s inquiry, Fire Department staff stated that a vehicle accident at the entrance to Monterey Peninsula Country Club involving resident drivers was very minor.

 

Paramedic Advanced Life Support Services

Mr. Kilic reminded the Board that Westmed Ambulance Service has become Monterey County’s new ambulance service contractor as well as the District’s Quick Response Vehicle service provider as of January 1, 2006. Westmed has been providing these services to the District pursuant to a letter agreement based on the same terms and conditions as the District’s contract with the previous contractor, American Medical Response Company. A new contract was developed with the following differences from the previous contract: The new contract includes operational provisions such as reporting responsibilities of the paramedics, types of incidents they are expected to attend to, training requirements, maintenance of the QRV, and personal conduct and use of the fire station. A major difference is the cost which has been reduced from $360,000 to $260,000. In response to Director Hornbuckle’s question of work hours listed in Section IX, Item H.1. being in conflict with 24-hour per day, seven day per week coverage, Chief Haines pointed out the difference between “hard” work hours and “soft” work hours for fire department personnel; uniformed hours are 0800 to 1700 (“hard” work hours). Other hours are considered “soft,” however, personnel are available for emergency response. Mr. Andrews pointed out that the language is similar to the CDF labor agreement. Chief Mazza stated that the primary reason for cost savings in the proposed contract with Westmed are due to the projected savings in monetary penalties by the ambulance contractor under the provisions of the new county-wide contract reducing response standards from 8 minutes to 12 minutes in areas (such as the District) that have advanced life support services (such as the QRV) in place. The QRV is tasked with an 8-minute performance standard to compensate for the reduction in the response requirement of the paramedic ambulance. Chief Mazza stated that, within the new County contract with Westmed, response areas are reduced in size easy making it less difficult for the ambulance contractor to meet the response specifications required.

 

 

MOTION 01-06-03

 

Moved by Director Verbanec, seconded by Director Laska, and unanimously carried, to adopt Resolution No. 06-01 approving contract with Westmed Ambulance Company to provide paramedic advanced life support services to augment PBCSD Fire Department first responder emergency medical services.

 

TIMED MATTER:

Results of community survey on traffic and safety issues and implementing supplemental security measures

President Hornbuckle called for the presentation of the timed matter at 10:04 a.m. Jack Kidder, immediate past president of the Del Monte Forest Property Owners (“DMFPO”) and chair of a Blue Ribbon Committee appointed to study and conduct a survey on traffic and safety issues within Del Monte Forest, commented on the submitted précis of the results of the survey conducted in October 2005, stating that an astounding response conveyed a need for supplemental law enforcement. Both the Blue Ribbon Committee and the DMFPO Board of Directors concur with the validity of the survey results as representative as a whole and are requesting the PBCSD Board take appropriate action to implement the means and methods to solve the problems. He stated that the recommendations presented are structured to be cognizant of the PBCSD Board’s fiscal responsibility to its constituency and include a plan anticipated to be implemented on a short-term basis with an annual review, much like a pilot program. Mr. Kidder recognized that solutions are the responsibility of not just PBCSD, but involve participation of the residents and PBCo. Mr. Kidder made a slide presentation of the background, survey results, solution approaches, planned DMFPO actions, requested PBCSD actions, and requested PBCo actions. In response to Director Hornbuckle, Mr. Kidder pointed out that although statistics may indicate speeding is a minor problem, there is a perception of potential danger and a disregard for public safety and welfare of Forest citizens that residents have indicated warrant attention. Radar units placed within the Forest have moved the issue from perception to reality. Regarding vandalism incidents, it may be that the task force instituted by Monterey County Sheriff’s Office (MCSO) has spread the word to potential vandals that arrests may occur as a result of acts of vandalism. Director Laska noted that crime specific solutions such as the task force appear effective, however, an institutional approach to enforcement issues may not be as effective. Mr. Andrews informed the Board that current law allows the PBCSD Board to make an informed decision on whether to provide this type of service within the District and recognizes supplemental or enhanced law enforcement or even the formation of a police department, as an authorized purpose of the District. Implementation under the current CSD Act calls for an ordinance to be prepared outlining the type of services to be provided, hold public hearings on the ordinance, and subsequently adopt the ordinance and implement the services. That ordinance is subject to the referendum process if enough people disagree with it. A petition is circulated and, if the requisite signatures are collected, the matter can be placed on the ballot if the Board does not change or drop the ordinance. The issue can be placed directly on the ballot if the Board so chooses. Once the Board decides that a service is necessary and reasonable, an application is then filed with the Local Agency Formation Commission (“LAFCO”) for its determination whether a service is duplicated within a governing area. Normally it would be expected that if LAFCO understands there is a need for a service not being delivered by an agency that is currently authorized to do so, that LAFCO would approve the District’s request. In that regard, Mr. Andrews recommended to the Board that it understand, in the event of undertaking enhanced law enforcement, it will, over time, more than likely need to assume a broader policy and program oversight role due to requests for more or enhanced enforcement, or policy questions or changes. An independent advisory group could be used to run the program. Most likely the District would be looked to for oversight of the program, as is the case for the District’s fire department; although PBCSD contracts with CDF for fire fighting services many of the policies CDF operates under were adopted by the Board. District Counsel advised that the governance issue in regard to contracting for supplemental law enforcement would need to be dealt with at some level before a contract could be entered into. Mr. Tormey requested his opposing view on enhanced law enforcement be heard before the Board makes any adoption of policy or action. Mr. Kidder pointed out that the intent of the survey was to demonstrate the level of support from the District’s constituency, and the survey would seem to indicate that action by the Board to implement the new service would not be overturned by referendum. Per Mr. Kidder, Mr. Tormey was the only no vote on the Blue Ribbon Committee, and his concerns being of a fiscal nature. The overwhelming support of these services as indicated by the survey results begs the Board to proceed as recommended by DMFPO.

 

Mr. Andrews summarized his understanding of the Board’s consensus gleaned form the current discussion: There are traffic and safety problems within the Forest; the Board has a desire to explore the recommendations put forth by DMFPO. He suggested the Board direct staff to begin to develop means and methods to address the problems bearing in mind the hearing process that will be available for public input as the development process matures. District Counsel advised that, per the agenda, the Board is to receive the report from DMFPO today; the Board certainly can weigh and express the merits of the report recommendations and direct staff to obtain further information such as financial, pros-cons, and details to place on the agenda for a future meeting to consider taking action in a policy form. President Hornbuckle expressed interest in receiving further information from PBCo, public comment such as Mr. Tormey’s, as well as cost information. Mr. Kidder stated that DMFPO plans to meet with PBCo and to also develop fiscal data relating to the issue by the next PBCSD Board meeting. Mr. Andrews stated that staff could inform the Board as well on the options of the governance role of the Board in this issue. District Counsel pointed out that the governing power, once authorized by LAFCO, is in total; the limiting of the power is subject to the decision of the Board and could change through time under Board discretion. It might be possible to put a sunset clause in the ordinance to set a time limit, however, another ordinance of a subsequent Board could be passed to change that limit.

 

By consensus, the Board concurred to direct staff to place on the agenda and present to the Board at the February or March meeting a course of action based on the DMFPO recommendations including governance, data, means and methods toward determining if the Board desires to undertake the issue overall.

 

TIMED MATTER ended 11:13 a.m.

 

Fire defense capabilities within Pescadero Canyon

Mr. Andrews submitted to the Board correspondence received from Kimberly and David Caneer of 4170 Sunset Lane dated December 12, 2005, and also signed by other residents of the area. He stated that the issue is informational. The fire department has met with the residents and has spent time evaluating the situation. There is no final report to present at this time, however, the initial conclusion is that some recommendations outlined in the letter can be supported by the District especially those regarding raising the priority of existing standards in that area. The interior of the Pescadero Canyon area needs to be evaluated further with specific recommendations to be brought back to the Board at next month’s meeting. Chief Haines concurred with the recommendation that the fuel break and Fire Road 23 be brought up to standards in the Pescadero Canyon area and outlined fire department action planned to address the areas specified. Kimberly Caneer expressed that she is pleased with the District’s attention to this matter to carry out Fire Defense Plan standards and stated the area residents’ desire is to be proactive in fire defense in their neighborhood. Further discussion encompassed the changes in fuel load from decades past and the need to adhere to the current Plan to address those changes. Mr. Andrews advised the Board that more specific recommendations on this issue would be forthcoming at the next Board meeting.

 

District Open House

Mr. Andrews stated that the only date that PBCo catering is available is June 17, 2006. Fire Department staff recommended June 17th as the date for the next District Open House.

 

MAINTENANCE, ENGINEERING, AND CONSTRUCTION

PBCSD Capital Improvement Projects

Forest Lake Reservoir

The Board received District Engineer Niccum’s memorandum regarding the status of the Forest Lake Reservoir Project. Mr. Niccum requested the Board consider contributing District funds for installation of life safety and security improvements at the Forest Lake property in the future. He stated that the reservoir was due to begin receiving water at any hour and estimated approximately two months would be required to fill the reservoir to capacity. The perimeter fence is in place with the 8-foot height appearing effective in keeping the deer out. Substantial completion of a construction project is normally when responsibility for site safety and security transfers from the contractor to the District. Mr. Andrews informed the Board the Technical Advisory Committee discussed plans for a Forest Lake dedication ceremony in mid-summer.

 

District Engineer Niccum reviewed orally the District Engineer's monthly status report on capital improvement projects.

 

Wastewater collection, treatment and disposal system

The Board received and reviewed the District Engineer’s Report of Utilities Operations and Maintenance for 12/01/05 – 1/18/06.  The annual inspection of the 2.5 million gallon recycled water storage tank indicated significant corrosion in the ceiling area.  A project to replace the interior tank coating will be moved up in the long-term capital outlay plan to next year. An operating Forest Lake will allow the District to meet irrigation demands while the storage tank is out of service for several weeks.

 

Reclamation Management Committee meeting

Mr. Andrews reported orally regarding the January 13, 2006, Reclamation Management Committee (“RMC”) meeting. PBCo resale of water entitlements has tailed off substantially and looks as if PBCo may have to come up with an additional $9 million or market water sales elsewhere than Pebble Beach to obtain the additional funds needed for the total estimated $30 million expanded project. Progress is being made on the advanced treatment facility; design issues are being worked through and the design phase is scheduled for completion by March 6th at which point Corollo will prepare the plans and specifications for PBCo so it can secure bids on design/build procurement.

 

Increase scope of 3rd Priority Water Pipeline Replacement Project

The Board received and reviewed the District Engineer’s Memorandum regarding an increase in the scope of the Third Priority Fire Protection Water Pipeline Project to include additional water lines located near the Monterey Peninsula Country Club.

 

MOTION 01-06-04

 

Moved by Director Laska, seconded by Director Verhasselt, and unanimously carried, to approve an increase in the scope of the Fire Protection Water System Improvements Third Priority Pipeline Replacement Project and authorize the General Manager to increase the construction contract with Monterey Peninsula Engineering (MPE) by up to $40,000.

 

Fourth Priority Fire Protection Water System Improvement Project

The Board received and reviewed the District Engineer’s Memorandum regarding E2 Consulting Engineers Project Assignment No. 10 for preliminary engineering services for the Fourth Priority Fire Protection Water System Improvement Project.

 

MOTION 01-06-05

 

Moved by Director Verbanec, seconded by Director Verhasselt, and unanimously carried, to adopt Resolution No. 06-02 approving Project Assignment Number 10 to the Master Agreement with E2 Consulting Engineers to provide preliminary engineering services required for the Fire Protection Water System Improvements – Fourth Priority Pipeline Replacement Project. The total estimated engineering cost is $49,760.

 

CAWD Board Meeting

Mr. Andrews attended the Carmel Area Wastewater District Board meeting held December 15, 2005 and January 26, 2006 and stated that the submitted reports embodied the essential important work accomplished at the meetings. At the last CAWD Board meeting, there was a very well done and informative report by the treatment plant superintendent regarding the future of wastewater treatment. Ray von Dohren, P.E. and General Manager, CAWD, stated that the Phase II improvement schedule is unchanged, and the award of the design/construct contract will occur in March with construction starting in earnest in June and scheduled completion in early fall of 2007. Mr. Andrews stated the staff of all of the agencies presented a progress report to the Water Management District last night and complimented Mr. Niccum on a very good presentation. The Water Management District directors were very complimentary about the project.

 

CAWD Meeting Assignment

Director Laska accepted the assignment to attend the CAWD regular Board meeting on Thursday, February 16, 2006 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 December 16, 2005 and January 24, 2006. He stated that the primary issue of the meetings was the highway litter clean up program; cities are becoming increasingly more involved with the problem as Cal Trans states it has no money to continue its program. There were no questions from the Board.

 

GENERAL GOVERNMENT

District employee salaries based on comparative salary survey

The Board received and reviewed the General Manager’s Report on the 2005 comparative salary survey and proposed adjustments to salaries. Mr. Andrews reviewed the report recommendations orally for the Board.

 

MOTION 01-06-06

 

Moved by Director Laska, seconded by Director Froke, and unanimously carried, to approve the submitted 2006 PBCSD Salary Survey and recommended salary range adjustments for certain job classifications and designated promotions, effective July 1, 2005.

 

Continued Health insurance coverage for employees and/or dependents

The Board received and reviewed the General Manager’s Report on continuation of health plan benefits at employees’ expense. Mr. Andrews reviewed the report orally.

 

MOTION 01-06-07

 

Moved by Director Verbanec, seconded by Director Laska, and unanimously carried, to approve revising Sections 1080.401 through 2080.404 of the District’s Administrative Code regarding the continuation of group health plan benefits, at the beneficiary’s expense, following retirement or other qualifying event, subject to the provisions of COBRA and/or Cal-COBRA.

 

 

 

Directors’ Assignments

The Board received and reviewed the General Manager’s Report on Directors’ assignments. The following assignments were accepted by the Board:

 

A.    CAWD/PBCSD Wastewater Reclamation Project Management Committee – Directors Hornbuckle and Verbanec, with Director Laska as alternate

B.    PBCSD Defined Benefit Pension Plan, and Supplemental Pension Plan Investment Committee Trustees – “Inside” Director Laska

C.    DMFPO Traffic and Safety Advisory Committee – Director Froke

D.    Pebble Beach Advisory Committee – Director Hornbuckle

E.    MRWMD and MRWMD Finance Authority – Director Laska

F.     ACWA/JPIA Board of Directors – Director Verhasselt

G.    Monterey County Special Districts Association – Director Verbanec with Director Verhasselt as alternate

H.    CAWD Board of Directors “observer” – rotate directors

 

Notice of Retirement

By consensus, the Board accepted the notice of retirement submitted by PBCSD General Manager Richard Andrews, to be effective June 1, 2006. A closed session was scheduled after the regular meeting items regarding the recruitment and selection process for Mr. Andrews’ replacement.

 

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

Mr. Andrews requested the Directors fill out the submitted ethics training interest sheet to determine the level of interest and preferred dates for upcoming training to be conducted on the Peninsula; completed forms can be turned in to Richard Farfan.

 

Director Verhasselt advised the Board that he would be reporting on real estate activity within the District at next month’s meeting.

 

Mr. Andrews commented on the submitted correspondence from Russell Jeffries, President of the Special Districts Association (“SDA”) of Monterey County to Chairman Lou Calcagno, Monterey County LAFCO, stating that the stand that the SDA took on the LAFCO reconsideration to deny the proposed splitting of the Carmel Valley Fire Protection District indicates that the SDA is beginning to mature and influence policy decisions by organizations such as LAFCO.

 

The Board received the submitted President’s Special Recognition Awards from ACWA/JPIA to PBCSD for achieving a low ratio of “Paid Claims and Case Reserves” to “Deposit Premiums” for the District’s Workers’ Compensation and Liability Programs.

 

CLOSED SESSION

President Hornbuckle announced the Board would meet in closed session pursuant to California Government Code Section 54957 to discuss the appointment and employment of a general manager to replace the retiring current general manager.

 

ADJOURNMENT

There being no further business at 11:55 a.m. a motion was made to adjourn. 

 

MOTION 01-06-08

 

M/S/C (unanimous) to adjourn to the next regular Board meeting to be held on Friday, February 24, 2006 at 9:30 a.m. in the District Boardroom at Forest Lake and Lopez Roads.

                          

                                              (s) Richard Andrews, Secretary