PEBBLE
BEACH COMMUNITY SERVICES DISTRICT
BOARD
OF DIRECTORS
Regular
Meeting of May 26, 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 May 26, 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
Robert Wellington, Legal Counsel
Robert Rathie, Deputy Legal Counsel
Suha Kilic, Finance Officer
Michael Niccum, District Engineer
Jackie Scoggin, Operations Battalion Chief, CDF
John King, Assistant Fire Chief, CDF, San
Benito-Monterey Counties Unit
Jan Bray,
Forester, CDF
Shaun Phillips, Fire Apparatus Engineer,
CDF
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
Al Budris, Director, DMFPO
Spencer Thompson, Member, DMFPO Traffic/Safety
Committee
Vinod Badani, Vice President, E2
Consulting Engineers
Ken White, Board President, Carmel Area Wastewater
District
Jack Conner, District Manager, Waste Management Inc.
Brian Bigham, Controller, Waste Management Inc.
President Hornbuckle presented past Board member
Nancy McCullough with a mounted and framed resolution of appreciation for her
service on the Board.
General Manager Richard Andrews’ retirement on
June 1, 2006, was recognized by Mark Verbonich, PBCo, who presented Mr. Andrews
and his wife with a certificate for a night’s stay at the Lodge and dinner at
Club XIX. Mr. Ken White acknowledged
that Mr. Andrews would be missed.
Moved by Director Laska, seconded by Director Verhasselt,
and unanimously carried, to approve the minutes of the regular Board meeting
held April 28, 2006, with a correction to the date of the next meeting in the
last motion.
The Board
received and reviewed the Statement of
Receipts and Disbursements for April 2006.
The Board received and approved the Check Register for April 2006.
Treasurer’s
Investment Report
District Finance Officer, Suha Kilic, advised
the Board that the County Treasurer’s Office was delayed in providing the Monterey County Treasurer’s Investment
Report for quarter ended 3/31/06 and it is being presented to the Board one
month later than usual. Director Laska, member of the Supplemental Retirement
Plan Investment Committee, commended Mr. Kilic for his excellent job of timing
Treasury bill purchases to maximize return on custom portfolio investments for
the District. Mr. Kilic answered questions from the Board and public.
District
Preliminary Budget
Mr. Kilic presented slides and reviewed orally the submitted District Preliminary Budget for Fiscal Year 2006-07 for the Board
to consider adoption of resolutions relating to preparation, public
notification, and approval. District Engineer, Mike Niccum, responding to
Director Laska’s question, estimated 1.5 persons were required to perform
maintenance and operations at Forest Lake Reservoir next year, however, because
actual manpower requirements may decrease in subsequent years, no new
maintenance department employees were hired. A budget allocation for contract
services is included to perform some routine tasks currently performed by
maintenance department personnel. Mr. Andrews responded to the discussion
regarding an increase in sewer user fees. Notwithstanding the District’s
authority to raise sewer use fees up to the limit of the costs to provide those
services, property taxes for District residents are substantial and bringing
user fees in-line with unsubsidized costs of services can be viewed as double-taxing
residents.
Mr. Andrews stated that county allocation of
Proposition 172 revenue to local agencies to fund public safety functions is a
rare occurrence. He suggested to the Board that when in contact with County
Supervisors they be commended for sharing this $128,000 revenue with the
District.
Mr. Kilic stated that the District’s budget
includes an increase in the garbage service fees. A major portion of the
increase is to offset Waste Management’s costs due to an increase in tipping fees
that went into effect on January 1, 2006. Mr. Kilic said, if approved, the
proposed garbage service fees will be effective July 1, 2006, and the District
will make a one-time payment of approximately $24,000 to the franchise holder,
Waste Management Inc, to offset the additional costs incurred during Jan 1- Jun
30, 2006 period. Director Laska inquired whether the budgeted costs for garbage
collection would include the same level of service as last fiscal year, or if
service would expand to include the collection of “universal” waste such as
batteries, monitors, and incandescent bulbs. Mr. Kilic stated that he would
look into the matter and report back to the Board. Nancy McCullough, past Board
member, felt that there should be no increase in residential garbage collection
fees stating that the District should use its property tax revenue to offset
this increase. Mr. Kilic responded that historically the District has not used
property tax revenues to cover the cost of garbage collection. One implication
is that the County or State could target property tax revenue used to subsidize
enterprise services, which can be fully financed with fees collected from
people using the service, when legislating to reallocate property tax revenue.
Wastewater collection service costs are fairly identifiable and have been
historically subsidized by property tax revenues. Garbage collection costs are
more dynamic due to changing laws to meet diversion goals and so have not been
historically subsidized.
Moved by Director Laska, seconded by Director Froke, and unanimously
carried, to adopt: Resolution No. 06-08
approving District positions, job classifications and pay schedule for fiscal
year 2006-07; Resolution No. 06-09
determining the Appropriations Limit for fiscal year 2006-07; and Resolution No. 06-10 approving the Preliminary Budget for Fiscal Year 2006-07
and setting the Final Budget Hearing, including user fees, for July 28, 2006 at
9:40 a.m.
Fire Chief’s Monthly Report
The Board received and reviewed the monthly
fire department operations report for April 2006. There was discussion
regarding spot fires reported by hikers in the forested areas off roadways.
Battalion Chief Scoggin stated the fires were minor covering only small areas and
were most likely attributed to the transient population and juveniles.
Inspectors are investigating these incidents in a low-profile manner.
Fire Defense Capabilities within Pescadero
Canyon
The Board received
and reviewed the submitted Fire Department Staff Report regarding Pescadero
Canyon fire defense. Assistant Fire Chief John King introduced CDF Forester Jan
Bray who, along with fire prevention staff and a representative of Gabilan
Conservation Camp, has assessed canyon conditions. Forester Bray stated that it
has been determined that a shaded fuel break can be built as proposed between Fire Road 23 and 20 through the
rugged, steep terrain. The next step is to provide cost estimates for the work.
A potential fire scenario in the area is predicted to start along 17-Mile Drive
and go up the canyon from there. The shaded fuel break (where low vegetation
and tree crowns remain but forest floor litter and vegetation that drives
flames to the crowns is removed) would bring the fire to the ground where it
can be battled. The fuel break is not intended to stop the progress of the
fire. The length of the fuel break proposed would be on PBCo property. There
would most likely be no Coastal Commission involvement, but the Del Monte
Forest Foundation, Open Space Advisory Committee, and Monterey County could be
involved. After the Huckleberry Hill fire, CDF developed a vegetation
management plan in conjunction with “stakeholders.” The District Fire
Department is the only agency within that group with the authority to declare a
fire hazard and hold that position. The
Pescadero Canyon project has the advantage of better communication now between
the stakeholders, and pre-existing roads in the proposed area of treatment.
Mark Verbonich, PBCo, noted that when the Los Altos fuel break was constructed,
it was done under a vegetation management plan developed by CDF with the
incoming District General Manager Mr. Craig Anthony being the key player in
that project. Mr. Verbonich appreciates the continuity that Mr. Anthony will
bring in these types of matters.
Fire Department staff
presented Mr. Andrews with mementos of appreciation for his leadership and
service to the District.
MAINTENANCE, ENGINEERING, AND CONSTRUCTION
Forest Lake Reservoir
District Engineer Niccum presented real-time
images of the reservoir from the newly installed and operating security
cameras. He stated that water from the reservoir is being used for irrigation
to supplement CAWD tertiary plant flows.
PBCSD Capital Improvement Projects
Mr. Niccum reviewed orally his monthly
status report on capital improvement projects. There were no 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 4/20/06 – 5/21/06. Higher-than-normal
wastewater flow and lower-than-normal recycled water irrigation demand relates
to wet weather during the period.
2006 Sewer Line
Replacement Project
Mr. Niccum reviewed orally the District Engineer’s Report and presented
to the Board slides showing the scope of the proposed 2006 Sewer Line
Replacement Project.
Moved by Director Laska,
seconded by Director Verhasselt, and unanimously carried, to approve the plans
and specifications for construction of the 2006 Sewer Line Replacement Project
and authorize an invitation to bidders.
Fourth Priority Fire
Protection Pipeline Replacement Project
Mr. Niccum reviewed orally the District Engineer’s Report and presented
to the Board slides of the scope of work for the proposed Fourth Priority
Pipeline Replacement Project.
Moved by Director Verbanec, seconded by Director Laska, and carried,
to approve the scope of work for the Fire Protection Water System Improvements
– Fourth Priority Pipeline Replacement Project with Director Froke abstaining
due to his affiliation with California American Water Company, a beneficiary of
the project improvements.
Director Verbanec attended the Carmel Area Wastewater District Board
meeting held May 18, 2006 and reviewed orally the highlights of the meeting.
CAWD announced a change in the Board meeting schedule to the fourth Thursday
each month (except for November when it is scheduled for the third Thursday) at
9:30 a.m. The main topic of the latest meeting was described in the submitted
correspondence dated 5/11/06 from Ray von Dohren, CAWD, to Mark Stilwell, PBCo,
regarding future management of the advanced treatment project. Mr. Andrews
believed the issue to be control of the design of the project and concluded he
was confident CAWD and PBCo would resolve the issue
CAWD Meeting Assignment
Director Laska accepted
the assignment to attend the CAWD regular Board meeting on Thursday, June 15, 2006 at 1:30 p.m. in
the CAWD Boardroom at 3945 Rio Road, Carmel.
Reclamation
Project Management Committee Meeting
Director Verbanec’s attendance at the CAWD/PBCSD Wastewater Reclamation
Project Management Committee meeting held on May 19, 2006, was covered in the
advanced treatment project discussion above.
GENERAL GOVERNMENT
District Police and
Security Services Authority
President Hornbuckle granted the request of District Counsel, Rob
Wellington, to take agenda item 17 out of order. President Hornbuckle requested
that the proposed submitted ordinance for the implementation of law enforcement
and security powers be changed to include within the body of the ordinance the
wording for the limitations of the exercise of that power instead of referring
to an addendum. Moreover, President Hornbuckle called for the wording of the
ordinance to be simplified to state the service being provided and not the
specifics of that service. Mr. Wellington will do so and present the ordinance
at the June Board meeting. Mr. Wellington advised that the ordinance may be
adopted at the June meeting and a hearing held on the matter, however, the power
cannot be enacted until the Local Agency Formation Commission (“LAFCO”) process
for authorization is complete. A Notice of Exemption as authorized by the
California Environmental Quality Act was filed on May 22, 2006 and LAFCO
approval of the District application for authorization to activate the power is
scheduled for June 26, 2006. There is a
60-day waiting period for LAFCO to hold a protest hearing before its final
approval and the issue could be held over until September as LAFCO schedules
vacation during the month of August.
SOLID WASTE MANAGEMENT
Director Laska reviewed orally the
submitted report of the meeting of the Monterey Regional Waste Management
District (“MRWMD”) held on May 19, 2006. Director Laska stated that MRWMD would
ask Waste Management, Inc. to modify its franchise agreement to include the
collection of “universal” waste such as computer monitors, light fixture tubes
and batteries. Director Laska requested District staff bring to the Board an
analysis of and cost projection for the collection of universal waste, to be
used in discussions with Waste Management, Inc.
The MRWMD Board conveyed highly
complimentary comments about Mr. Andrews on the occasion of his departure and
passed a resolution of congratulations in his honor for all of his time spent
as a “friend of the District” in a cordial and collegial relationship between
the Districts.
GENERAL GOVERNMENT
Appointment of
District General Manager
Moved by Director Verbanec,
seconded by Director Laska, and unanimously carried, to confirm the appointment
of Craig E. Anthony to the position of District General Manager, effective June
1, 2006, upon terms and conditions specified in the Board’s offer of employment
letter dated May 2, 2006.
Oral reports from General Manager
Mr. Andrews praised
the Board members who have served during his tenure and commended their professionalism,
fiduciary adeptness, and commitment to the District. He also expressed thanks
to the staff for their team effort in serving the District.
Questions from Directors or staff seeking
clarification of matters within the purview of the District
There were no
questions from the Board or staff.
Directors Hornbuckle and Laska attended Ethics Training at the Association of California Water Agencies (“ACWA”) conference May 10 through 12, 2006. Director Verhasselt attended the Joint Powers Insurance Authority conference May 8 through 9, 2006 and the Association of California Water Agencies conference May 10 through 12, 2006, and submitted notes of those meetings to the Board. Director Verbanec stated that PBS television would be running a series of programs relating to water, the shows being funded by ACWA.
In a letter dated April 18, 2006,
Finance Officer, Suha Kilic was recognized by the ACWA Joint Powers Insurance
Authority for completing the JPIA Professional Development Program. Mr. Kilic
received a plaque from the organization.
Directors Hornbuckle and Laska will attend the CAWD/PBCSD Wastewater
Reclamation Project Management Committee meeting on July 14, 2006, at 9:30 a.m.
in the PBCSD Boardroom.
CLOSED SESSION
The Board adjourned to closed
session at 12:15 p.m. regarding a personnel issue. President Hornbuckle
reconvened open session at 12:27 p.m. and reported the Board considered the
matter listed on the agenda, gave direction to the General Manager and no other
action was taken.
ADJOURNMENT
There being no further business at 12:28 p.m. a motion was made to
adjourn.
MOTION
05-06-06
M/S/C (unanimous) to adjourn to the next regular Board meeting to be
held on Friday, June 30, 2006 at 9:30 a.m. in the District Boardroom at Forest
Lake and Lopez Roads.