PEBBLE BEACH COMMUNITY SERVICES
DISTRICT
BOARD OF DIRECTORS
Regular Meeting of April 28, 2006
MINUTES
A regular meeting of the Board of Directors of the Pebble
Beach Community Services District ("PBCSD") was held in the District
Boardroom on April 28, 2006. Board President Gary D. Hornbuckle called the
meeting to order at 9:30 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
Kenneth D. Buchert, Associate Legal Counsel
Suha Kilic, Finance Officer
Michael Niccum, District Engineer
George Haines, Fire Chief, CDF, San Benito-Monterey Counties
Unit
John King, Assistant PBCSD Fire Chief / Asst. CDF Unit Chief
Jackie Scoggin, Operations Battalion Chief, CDF
Jim Nero, Director, Del Monte Forest Property Owners
(“DMFPO”)
Nancy McCullough,
Member, DMFPO Traffic/Safety Committee
John Fisher, Pacific Grove resident
Mark Verbonich, V.P., Community
Affairs, Pebble Beach Company ("PBCo")
John Tormey, Pebble Beach resident
Linda Elliott, Director, DMFPO
Pat Skinner, Director, DMFPO
Paul Jordan, Director, DMFPO
Al Budris, Director, DMFPO
Sanford Getreu, Director, DMFPO
Spencer Thompson, Member, DMFPO Traffic/Safety Committee
Vinod Badani, Vice President, E2 Consulting Engineers
Ray von Dohren, P.E., General Manager, Carmel Area
Wastewater District ("CAWD")
Ed Lorenzana, Commander, Monterey County Sheriff’s Office
Coastal Station
June Duran Stock, Member, Del Monte Forest Open Space
Advisory Committee
Kimberly Caneer, Pebble Beach Resident, Pescadero Canyon
Randi Greene, Member, DMFPO Traffic and Safety Committee
Richard Andrews, Board Secretary, submitted to the Board
draft minutes for the PBCSD Special Meetings held on April 21, 2006 and April
26-27, 2006. Mr. Andrews also submitted an updated draft of Resolution No. 06-06 pertaining to item
#3 on the agenda.
Moved by
Director Laska, seconded by Director Verbanec, and unanimously carried, to
approve the minutes of the regular Board meeting held March 31, 2006, as
submitted.
MOTION 04-06-02
Moved by
Director Froke, seconded by Director Verhasselt, and unanimously carried, to
approve the minutes of the special Board meeting held April 21, 2006 and the
special Board meeting held April 26, 2006, continued to April 27, 2006, as
submitted.
The Board received and reviewed the Statement of Receipts and Disbursements
for March 2006.
Third Quarter Budget
Report
Mr. Kilic presented slides and reviewed orally the submitted Finance Officer’s Report regarding the Third Quarter Budget Report Fiscal Year 2005-06 and responded to
questions from the Board and public.
Moved by Director Verbanec, seconded by Director Verhasselt, and
unanimously carried, to accept the Third Quarter
Budget Report for Fiscal Year 2005-06 and approve the budget
adjustments as presented.
The Board received and approved the Check Register for March 2006.
There were no questions or comments from directors.
PBCSD Long-Term Capital Outlay
Program
Mr. Niccum presented slides and
orally reviewed the submitted Annual
Update of the PBCSD Long-Term Capital Outlay Program. In response to a
question from Director Laska regarding the impact of PBCo’s proposed Del Monte
Forest Plan developments, Mr. Niccum stated that the District infrastructure
had been reviewed and has been found sufficient to handle planned PBCo projects
without major cost. However, it is assumed that any costs related to connecting
to the District system and sites will be borne by the project proponent. Board
review of this matter will be ongoing as construction planning for PBCo
projects proceed. He said one area that
will have to be studied more carefully will be Water System Improvements for
Fire Protection, which may require additional water storage at a cost to the
District, but this has not been fully identified yet. CAWD will continue to use
chlorine gas in its treatment facility, as it has eliminated a potential
project involving a change to ultraviolet disinfection. In response to
questions from Pebble Beach resident John Tormey, Mr. Niccum stated that the
District is equipped to handle emergency sewer line repairs on a timely basis
and will subcontract if any widespread damage occurs due to an emergency event.
Regarding the planned advanced treatment facilities at CAWD involving
micro-filtration and reverse osmosis systems: PBCSD and CAWD will not be
charged maintenance costs for that part of the treatment system, as CAWD will
be reimbursed for those costs by the Wastewater Reclamation Project.
Moved by Director Laska, seconded by
Director Verbanec, and unanimously carried, to approve the Updated PBCSD Long-Term Capital Outlay Program as presented.
PBCSD Long-Term Financial Plan
Suha Kilic, District Finance
Officer, presented slides and reviewed orally the submitted 2006 PBCSD Long-Term Financial Plan. Mr.
Andrews suggested that, from the Board’s perspective, an added policy issue to
consider in the 2006 Long-Term Financial
Plan is the proposed creation of a discretionary rate stabilization
fund. He said the fund is another
District reserve fund, which would not be used unless there was an upward shift
in the cost of sewer services. It would
be an additional discretionary reserve fund available to keep sewer fees from
skyrocketing in the event the legislature prohibited the use of property tax in
the future to subsidize sewer fees. The establishment of this fund is another
way of documenting that the District is using all of its revenue and resources
in a reasonable manner. President Hornbuckle suggested that other potential
cost factors supporting the creation of the fund may be projects relating to
management of storm water runoff and placing electrical lines underground. He expressed the opinion that either one or
both of those types of projects could significantly reduce the current
discretionary fund base. He also suggested that after the District’s new general
manager arrives on June 1, 2006 that these matters relating to the 2006 Long-Term Financial Plan be
discussed again when the District’s strategic planning is updated. Mr. Andrews stated that with completion of
the long term improvement program of water system improvements for fire
protection the allocation of discretionary funds would be a key issue for the
Board to consider over the next few years. Mr. Tormey inquired as to what funds
would be used to repair or reconstruct utilities infrastructure in the event of
a major natural disaster or emergency. Mr. Kilic responded that the Operations
and Maintenance Reserve Fund would be used, along with state and federal funds
which may be available. Then,
discretionary funds could be used if no other funds were available. Mr. Andrews
stated that the District goal is to be as “transparent” as possible in its use
of revenues.
Moved by Director Verhasselt,
seconded by Director Laska, and unanimously carried, to approve the Updated PBCSD Long-Term Financial Plan,
and authorize the Staff to implement the necessary inter-fund transfers to
implement the Plan.
TIMED MATTER – 10:00 A.M. TO 10:34 A.M.
Supplemental police services within the Del Monte Forest
President Hornbuckle called for
the scheduled public hearing at 10:00 a.m., indicating that the staff report
would be presented first, followed by questions from directors and then the
hearing would be opened for comments and questions from visitors. Mr. Andrews reviewed the circumstances
leading to the presentation to the Board of a legal discussion on the exercise
of latent powers and the proposed Resolution
No. 06-06 authorizing the filing of a petition with the Local Agency
Formation Commission of Monterey County (“LAFCO”) requesting approval to
implement latent powers of the District to provide police and security services
pursuant to the applicable government code sections. The updated draft of the
resolution included minor changes that all pertained to more accurately
referencing the attachments to the LAFCO application instead of including
duplicate attachments with the resolution that are already contained in the
LAFCO petition. Associate Legal Counsel Kenneth Buchert reviewed orally the
submitted legal discussion, pointing out that the petition under consideration
clearly states the Board’s desire for a limited, incremental approach to
implementation of supplemental police and security services and not to organize
a police department. The District ordinance that the Board would adopt to
implement this power after LAFCO’s approval of the application will also
clearly state this limited approach. Mr. Andrews further clarified that LAFCO
approval of the District’s implementation of latent powers in this regard would
actually allow for the formation of a District police department, which, stated
clearly in the submitted documents, would not be staffed by District regular
employees, but would be conducted on a contract basis very similar to the
current District fire department organization whereby services are contracted
with the California Department of Forestry and Fire Protection. Director Laska
inquired, assuming approval by the LAFCO, if the District would be required to
implement the proposed services. In response, Mr. Buchert indicated
implementation would not be required by law.
Mr. Andrews commented that rather than a legal matter, it would more
likely be a political consideration in the Board’s relationship with its
constituency, with the constituency approaching the Board, raising a policy
question as to why the services had not been implemented.
Mr. Andrews stated that the LAFCO
has preliminarily reviewed the initial and subsequent rough drafts of the
proposed Board resolution and the LAFCO application, and its Executive Officer
found it all in order. LAFCO intends to process the documents and prepare the
matter for the Commission’s June 26th meeting. Mr. Andrews said the
LAFCO Executive Officer recognizes the desire and need expressed by the
residents for this service. Following the Commission’s action on June 26th
there will be a 3-month waiting period for final approval, as LAFCO rules
require that a protest hearing be held 60-days after the Commission’s initial
approval of the application. However,
the end of the 60-day period falls during the Commission’s annual vacation which
is scheduled in August. Therefore, final
action on the PBCSD application will be pushed ahead to the Commission’s
meeting during the fourth week in September. If public response received during
the 60-day period is generally favorable, the District can use this time to
formulate the implementation ordinance. Mr. Andrews then reviewed orally the
District’s application to the LAFCO. Director Laska asked if it would be
appropriate for the Board to pass a conditional ordinance in the interim while
awaiting a determination from the LAFCO. Mr. Buchert expressed the opinion that
it would be better to formulate and review the ordinance in the interim, but
wait to adopt it as a non-conditional ordinance after LAFCO’s final approval of
the District’s application. Mr. Tormey inquired whether the LAFCO could grant
partial latent powers to the District, or if full latent powers for police and
security services within the District would have to be granted. Mr. Andrews
responded that the LAFCO Executive Officer prefers, and will recommend to the
Commission, that it grant full power and leave the limits of that power to
local discretion, subject to referendum, which is a process whereby residents
can petition the Board to change or abandon the ordinance or to call for a vote
of the electorate. He clarified that the
referendum process does not necessarily mean the ordinance would have to be
placed on the ballot if the Board agrees with modifications proposed by
constituents. In that case, the Board
could accept proposed modifications and adopt an amended ordinance without
calling for a public vote. However, if the Board does not agree with the
modifications proposed in a referendum process, then, a vote of the electorate
would be necessary if the Board wished to proceed as originally planned.
Director Verbanec noted that requisite to any expansion of powers and in
defining the scope of the implementing ordinance, there would be a
comprehensive public hearing process.
President Hornbuckle then opened the public hearing to questions and
comments from visitors.
Mr. Tormey asked for clarification
of a number of matters relating to the Board’s authority and financial
considerations; and, upon hearing the responses from District staff and
directors, informed the Board that he concurred with the proposed incremental
approach, believed there would be adequate public oversight and was therefore
in full support of the Board proceeding as proposed in the matter. Ms. Lucille
Beesbrook Hannah, Pebble Beach resident, informed the Board that her home under
construction had been broken into last Wednesday and burglarized between the
hours of 9 p.m. and 7 a.m. Ms. Hannah stated that the Sheriff’s Office response
time was two hours, and that several phone calls were necessary to get them to respond
within that time period. She felt, after talking to the responding deputy, that
burglaries are common in the Forest, and that the current security protection
resources are not sufficient for the problems at hand. Jim Nero, Past President
and Director, DMFPO, indicated that he was commenting on behalf of DMFPO and
its members who were present. He said
that because the matter had been thoroughly reviewed by both PBCSD and DMFPO
and as no opposition had been indicated by anyone to the proposed plan of
action, that he would simply state for the record that DMFPO supported and
would commend the PBCSD Board for adopting Resolution
No. 06-06.
Mr. Andrews stated that staff
would come back to the Board at its May meeting with a draft implementation
ordinance containing suggestions of levels and limitations of services to be
provided. The draft ordinance will be for Board discussion and terminology will
reflect that of Resolution No. 06-06,
which is based on incremental contract services and limits the financing of
services to available discretionary revenues.
He suggested the ordinance also allow enough discretion for
modifications to service levels as long as there is enough revenue available
without levying fees or additional taxes. Mr. Buchert said the ordinance could
allow that degree of discretion and still protect the Board’s and the public’s
oversight rights relating to issues such as changing the scope of contract
services. He said this was because those
types of changes would likely require amending any agreement in place for the
service, which would open the issue up to Board consideration and public input.
Moved by Director Verbanec, seconded by Director Verhasselt, and
unanimously carried, to adopt Resolution
No. 06-06, a resolution of application by the Pebble Beach Community
Services District requesting the Local Agency Formation Commission of Monterey
County to take proceedings for the implementation of the latent powers of
police and security services by the District.
Fire Chief’s Monthly Report
The Board received and reviewed the monthly fire department
operations report for March 2006. There were no questions from the Board.
Director Verbanec noted that he along with Mr. Andrews and Chief Haines attended
a meeting of the Special District Association of Monterey County, one topic
being the intent of the Federal Communications Commission (“FCC”) with regards
to narrow banding radio frequencies that will affect all two-way radio users.
Chief Haines stated that there are a finite number of bands of frequencies
available for use, and the FCC is attempting to create more of the narrower
bandwidths to offer to a larger number of users. The District supplies the
radios that the fire department staff uses; the system that those radios
connect to is the California Department of Forestry and Fire Protection’s
(“CDF”) system. CDF is currently in the process of upgrading the system
statewide to meet the FCC requirements. The CDF upgrade will address the new
requirements; the District maintenance department radios will need to be
upgraded. Mr. Andrews noted that the County of Monterey is leading an effort to
create a joint powers authority to cover the cost of engineering, improvements
to existing facilities and acquisition of new equipment necessary to convert to
narrow banding. He said the upgrade is a mandatory requirement of the FCC: The
District can proceed with this issue on its own, or can join the joint powers
agency for a potential cost savings. Staff plans to present a proposal at the
May Board meeting for the District to participate with the County in the JPA.
As to the Board’s question about the availability of new technology such as
“band skipping”, it should be answered through collective efforts of the joint
powers plan.
PBCSD Fire Department Open House
Chief
Haines confirmed the date of the 2006 Open House as June 17th. The
Board was requested to give any comments regarding changes or additions in
planning for this year’s event. There were
no questions or comments from directors.
Fire Defense Capabilities within Pescadero Canyon
Chief Haines reviewed orally the
submitted Fire Department Staff Report regarding progress made in evaluating
the concerns expressed by Sunset Lane residents regarding fire risks in
Pescadero Canyon. He said CDF’s
professional forester had conducted a Fuel Load Assessment, which had been
coordinated with the Del Monte Forest Foundation Open Space Advisory Committee
and the Del Monte Forest Foundation forester. Mr. Andrews indicated that, in
response to the concerns raised by the Sunset Lane property owners, the
District is focusing on the interior of the area of Pescadero Canyon for
improved vegetative fuel management. He
said the PBCSD Fire Defense Plan sets requirements for the perimeter of areas,
but does not address interior areas of the canyon. The Fire Department has
tasked its forester to develop cost estimates and determine the amount of labor
required for improved fuel management in the interior, and staff will come back
to the Board next month with specifics in that regard. Mr. Andrews suggested
there may be two policy issues that the Board may want to consider as the fire
department’s study of the area progresses. First, the Board may want to consider
giving District financial support to property owners in clearing the area.
Vegetation clearing for an eminent fire hazard has historically been the
responsibility of property owners of the affected areas. For the first time
several years ago, the District financed the extension of fire road 23 in
Pescadero Canyon with justification based on the need for the fire road to
serve a greater public purpose than only the adjacent Sunset Lane and Sunridge
Road properties. The current issue may be similar in nature; in considering
overall vegetation management, it may not be justifiable to ask the owner of
the property and adjacent property owners to handle all of the necessary
clearance costs. The second policy issue the Board may wish to consider is that
the proposed work program for fuel load clearance within the interior forested
area of Pescadero Canyon may have implications with the Coastal Commission and
Monterey County Planning Department, as the Environmental Impact Report
associated with the Pebble Beach Company Forest Preservation and Development
Plan recommends site specific forest management plans be developed throughout
the areas affected by the Plan. Therefore, the vegetation management or fuel
break work program may need to be developed in conjunction with all the
entities implicated: Pebble Beach Company, the Del Monte Forest Foundation that
holds title or easements, the Coastal Commission and Monterey County Planning.
More forest plans will be promulgated as Pebble Beach Company’s Plan moves
forward.
In response to Director Verbanec’s
statement that it might be time for the District to move from reaction to
prevention in fire management, Mr. Andrews stated that, under the PBCo Plan,
most of the area at issue is due to be deeded to DMFF, with arrangements most
likely being made for PBCo to continue with financial responsibilities for
maintenance of scenic easement deeded areas. In the past, the District and
property owners have been
fortunate to have available the services of the Gabilan Conservation Camp, which has been
facilitated by the contractual relationship the District has with CDF. That
resource will continue to be used; however, if crews are unavailable, then the
issue of property owners financing forest maintenance for fire protection
purposes would need to be dealt with. The subject of goats and the availability
and capacity of the animals to clear various types of vegetation, namely ground
cover that poses the highest fuel load threat, was discussed. Mr. Andrews
pointed out the CDF foresters concern about the unique nature of the Pescadero
Canyon area as being comprised of 5 to 50% slopes, and when the fuel load in
the steeper areas is ignited, a chimney effect is created that elevates the
potential fire hazard. Director Verbanec expressed the opinion that the
District should help in this matter with any resources available to it.
Kimberly Caneer, Sunset Lane
property owner, questioned the use of “Sundance” Road in the Fuel Assessment
Report. Chief Haines stated the label should read Sunset Lane. Ms. Caneer
pointed out the similarity in fuel load and the urban/wildland interface of the
present Pescadero Canyon situation to the fuel load and interface that she
believed was present during the disastrous 1987 Morse Fire in the Huckleberry
Hill area of the Forest. In light of the similarities, she requested that
immediate attention focus on the area below the structures along Sunset Lane
that abut Fire Road 23, and to maintain the area as set forth in the PBCSD Fire
Defense Plan as a fuel break, not simply as a fire road. Mr. Andrews indicated
that Fire Department staff would come back at next month’s meeting with
information on the scope of work and a range of cost for work such as “shaded
fuel breaks” and other assessments from the forester assigned to the task.
MAINTENANCE, ENGINEERING, AND CONSTRUCTION
Forest Lake Reservoir
Mr. Niccum presented slides and reviewed the status of the
Forest Lake Reservoir Project. He stated that the reservoir is currently filled
to capacity with recycled water.
PBCSD Capital Improvement Projects
District Engineer Niccum reviewed orally his monthly
status report on capital improvement projects. Mr. Niccum responded to questions from the Board.
Wastewater collection, treatment and disposal system
The Board received and reviewed
the District Engineer’s Report of Utilities Operations and Maintenance for
3/23/06 – 4/19/06. There were no additions or changes to the report.
Forest Lake Project Construction Management Services
The Board received and reviewed
the District Engineer’s memorandum regarding increased cost of construction
management services for the Forest Lake project. There were no questions or comments from
directors.
Moved by Director Laska, seconded by
Director Verbanec, and unanimously carried, to approve an amendment to Project
Assignment No. 8 for the Master Agreement with E2 consulting Engineers, Inc.
(E2) to increase the budget by $48,900 for construction management engineering
services related to the Forest Lake Reservoir Project.
Director Verhasselt
attended the Carmel Area Wastewater District Board meeting held April 20, 2006
and reviewed orally the highlights of the meeting. He said, of note was a
PowerPoint presentation by the Collections System Manager covering a new Sewer
Overflow and Backup Response Plan for all workers responding to such incidents.
Mr. Andrews noted that PBCSD will also need to modify its response plan to
bring it into conformance with new State Board policies, perhaps potentially
incorporating applicable elements of CAWD’s Plan. The CAWD General Manager also
reported that the micro-filtration/reverse osmosis advanced treatment system of
the Expanded Reclamation Project is in design review at the 30% design state
with 30 cost items being reviewed very carefully by the PBCo. Total project
cost is estimated at $18 to $20 million.
CAWD Meeting Assignment
Director Verbanec accepted the
assignment to attend the CAWD regular Board meeting on Thursday, May 18, 2006 at 1:30 p.m. in the CAWD
Boardroom at 3945 Rio Road, Carmel.
SOLID WASTE MANAGEMENT
Director Laska reviewed
orally the submitted report of the meeting of the Monterey Regional Waste
Management District (“MRWMD”) held on April 25, 2006. Director Laska responded
to questions.
MISCELLANEOUS
INFORMATION AND COMMUNICATIONS
Oral reports from General Manager
Mr. Andrews called the Board’s
attention to the LAFCO of Monterey County’s Notice of Vacancy and invitation
for applicants for appointment by the Commission to serve as either a public or
alternate public member of the LAFCO. The candidate cannot be an elected
director of a special district or city council, but others are encouraged to
apply.
Mr. Andrews attended the Special
District’s Association meeting at which FCC narrow banding was discussed, as
commented on by Director Verbanec earlier in today’s meeting.
Mr. Andrews attended a meeting of
the General Managers Group of Monterey County on April 25, 2006. He said during
the round table discussion of activities at various special districts, the
Monterey Airport District General Manager noted a major 2-year program to remodel
the airport terminal facilities. He said
the Golden Tee Restaurant would be back in service in July. Other modifications
done at the Airport will eliminate having to go outside for baggage claim by
moving all baggage operations to the west end of the building.
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
Director Verhasselt will be
attending the Joint Powers Insurance Authority conference May 8 through 9, 2006
as the PBCSD Board’s representative on the JPIA Board of Directors. The Board
concurred that all Directors could attend the Association of California Water
Agencies conference May 10 through 12, 2006 in Monterey, and that Directors Laska and
Hornbuckle would attend the Ethics Training portion of that conference.
Director Verbanec will attend the Reclaimed Water Management
Committee meeting on May 19, 2006 as one of the PBCSD Board’s
representative. It was noted that
Director Hornbuckle will be unavailable as he would be traveling out of the
area and that Director Laska, the alternate representative, would also be
unavailable to attend the Reclamation Management Committee meeting, as he was
required to attend the Board of Directors meeting of the Monterey Regional
Waste Management District as PBCSD’s member of that governing board.
CLOSED SESSION
President Hornbuckle announced the Board would meet in
closed session to consider a personnel matter.
The Board reconvened in open session at approximately 12:30 p.m. and
Legal Counsel announced that no reportable action had been taken by the Board
during the closed session.
ADJOURNMENT
There being no further business at 12:40 p.m. a motion was
made to adjourn.
MOTION 04-06-08
M/S/C (unanimous) to adjourn to the next regular Board
meeting to be held on Friday, April 28, 2006 at 9:30 a.m. in the District
Boardroom at Forest Lake and Lopez Roads.
(s) Richard Andrews, Secretary