G E N E R A L M A N A G E R ' S R E P O R T
January 28, 2005
TO: Board of Directors, PBCSD
FROM: Richard Andrews, General Manager
SUBJECT: Directors’ Assignments
_________________________________________________________________________
Traditionally, at
the first meeting of the year, the Board President requests that directors
review their assignments to committees and agencies with whom this District is
affiliated. Accordingly, directors are
asked to express their desires to continue or not in their current assignments
and, as appropriate, consider confirming new or continuing assignments. There are currently no standing committees
of the Board, however directors are assigned to serve as Board and/or District representatives
on a number of interagency and District policy and advisory committees and
boards. From time to time ad hoc
committees or subcommittees of the Board have been established to address
special issues, although none are in existence at this time.
The procedure for
appointments and/or assignments of directors to committees and boards is a
matter of Board discretion. No formal
procedural policy has been adopted for director assignments. The prevailing procedure has been collegial;
first with consultation occurring between the Board President and directors,
and appointments usually confirmed by formal motion of the full Board.
1.
Review and consider
assignment of Directors, as may be appropriate, to the following committees:
A.
Carmel Area Wastewater
District (“CAWD”)/PBCSD Wastewater Reclamation Project Management Committee (2
regular members, 1 alternate member)
B.
PBCSD Defined Benefit
Pension Plan, and Supplemental Pension Plan
Investment Committee Trustees (2
directors or 1 “inside” director trustee and 1 non-director “outside” trustee)
C.
Del Monte Forest Property
Owners Traffic and Safety Advisory Committee (1 director)
D.
Pebble Beach Advisory
Committee (1 director)
E.
Monterey Regional Waste
Management District and Monterey Regional Waste Management District Finance
Authority (1 director)
F.
Association of California
Water Agencies Joint Powers Insurance Authority
(“ACWA
JPIA”) Board of Directors (1 director,
1 alternate director)
G.
Monterey County Special
Districts Association (1 director, 1 alternate director)
H.
CAWD Board of Directors
“observer” (1 director, assignment rotated equally among directors)
The
following describes the various assignments of PBCSD directors.
CAWD/PBCSD
Wastewater Reclamation Project Management Committee:
On November 1, 1990
the parties involved in financing, constructing and operating the reclamation
project entered into a four-way agreement, the Construction and Operation
Agreement. These parties include
the Monterey Peninsula Water Management District, Pebble Beach Company, Carmel
Area Wastewater District (“CAWD”) and PBCSD.
The Agreement established the
Reclamation Management Committee, which has policy setting and fiscal oversight
responsibilities for the reclamation project.
In the recently approved Amended and Restated
Construction and Operation Agreement
for implementation of the Expanded Reclamation Project (Phase II), the Management
Committee’s oversight and policy-setting responsibilities have been extended to
the construction and operation of the new improvements, Forest Lake Reservoir
in PBCSD and the Reverse Osmosis / Advanced Treatment Facilities in CAWD. Committee membership is comprised of two
representatives from CAWD and PBCSD and one representative of the PBCo. Since establishment of the Committee, CAWD
and PBCSD have always selected their Management Committee representatives from
members of the respective districts’ boards of directors. The Reclamation Management Committee usually
meets bimonthly, with occasional special meetings also required. PBCSD’s representatives in 2004 were directors
Hornbuckle and Hendrick, and Director Laska served as the Board’s alternate
representative. As Director Hendrick
will be leaving the Board one PBCSD position on the Committee will be
vacant.
PBCSD Employees’
Supplemental Pension Plan Investment Committee:
In 1994 the
Supplemental Employee Pension Plan for
PBCSD employees was established in-lieu of participation in the federal
social security system. Under the
Supplemental Pension Plan, which is financed from employer and employee
contributions equivalent to Social Security, employees may place their
accumulated employer contributions (net of the premiums for long-term
disability, life insurance and Medicare) under the purview of the PBCSD
Investment Committee. Alternatively,
they may leave all of their funds with the pension plan administrator, ING
Financial, and designate investments from a family of mutual funds offered by
ING. Currently, 6 of the District’s 11
regular employees are participating in the Investment Committee’s investment
program, which currently has a portfolio valued at about $252,000. The Investment Committee meets monthly and
may occasionally hold a special meeting.
Trustee business regarding both the Defined Benefit Pension Plan and the
Supplemental Pension Plan is usually scheduled concurrently with Investment
Committee meetings.
For
many years two PBCSD directors were designated to serve as trustees for both
pension plans and as members of the Investment Committee. Two PBCSD employees,
the General Manager and the Finance Officer, also serve on the Committee. In the past, the Board once appointed one of
its members as an “inside” trustee and someone from the community as an
“outside” trustee. In 2002, the Board
re-designated both trustee positions as “inside” trustee positions. Current trustee/investment committee members
are PBCSD Directors Hendrick and Laska, who also serve as the designated
trustees for the PBCSD Employee Defined Benefit Pension Plan that is fully
funded by the District and administered by ING Financial. Employees only participate in investment
decisions related to the Supplemental Pension Plan, and not the Defined Benefit
Plan, which is fully funded by the District.
The Board’s two director trustees make all decisions regarding the
Defined Benefit Pension Plan, with input from the Plan Administrator,
consulting actuarial and district staff.
As the Defined Benefit Plan is being phased out, over time, in lieu of
the District’s participation in a CalPERS Pension Plan, it is expected that
there will be fewer obligations associated with serving as a Trustee of the
Defined Benefit Plan. Director Hendrick
will be leaving the Board, so it will be necessary to designate another
Director to serve as a Trustee of the Defined Benefit Pension Plan and as
member of the PBCSD Investment Committee of the Supplemental Pension Plan.
Del Monte Forest
Property Owners (“DMFPO”) Traffic and
Safety Advisory Committee:
The Del Monte Forest Property Owners established a seat for
PBCSD on the DMFPO Traffic and Safety Advisory Committee, which, as the name
implies, is advisory to the DMFPO Board.
The Traffic and Safety Advisory Committee studies projects and issues
related to transportation and security within the Forest, considers information,
recommendations and complaints from residents and offers advice to the DMFPO
Board and the Pebble Beach Company (“PBCo”).
The Committee was established by the DMFPO to provide consultation and
coordination with the PBCo and Monterey County, and helps PBCo meet its
responsibilities under the 1984 Del Monte Forest Land Use Plan (“DMF LUP”) and
policy agreements entered into between the County and the PBCo for
implementation of the DMF LUP. The Committee reviews and makes recommendations
to the DMFPO Board and the PBCo on such matters as the need and specifications
for road and intersection improvement projects, traffic enforcement regulations
and policies, traffic impacts related to development projects and security
matters. The Committee meets monthly,
on the last Tuesday of the month, except in December. Director McCullough served on this committee in 2004.
The PBCSD General Manager has been designated by DMFPO to
serve as a non-voting “resource” member of the Committee.
Pebble Beach Community Advisory Committee:
One director,
traditionally the Board President or Vice President, is assigned by the
President to attend a quarterly meeting of this committee, which is organized
and staffed by the Pebble Beach Company.
Infrequently, when no PBCSD Directors have been available, the General
Manager has represented PBCSD at Advisory Committee meetings. Establishment of
the Committee was required by an agreement between Monterey County and PBCo to
implement the 1984 Del Monte Forest Land Use Plan and Local Coastal
Program. Underlying the requirement
is the recognition
that the area is a gated community wherein the Pebble Beach Company has assumed
a number of important municipal-type public service responsibilities; i.e.
maintenance of roads, forest and coastal shoreline, storm water drainage and so
forth. The primary purpose of this
advisory committee is to share information and to provide feedback to the
Pebble Beach Company from various community-based organizations, including this
District. The PBCSD representative who
attends these meetings is responsible for providing brief summary comments
about the most important issues or actions of PBCSD and to bring back to the
Board pertinent information shared by others who participate in the Pebble
Beach Advisory Committee meetings.
Association of
California Water Agencies Joint Powers Insurance Authority (“ACWA JPIA”) Board
of Directors
The ACWA JPIA was
established in 1979 to provide liability insurance coverage tailored to the
needs of California local government agencies that provide water and related
local government services. The
organizational concept is to share risk and costs, through several layers of
coverage: (1) a self-insured layer, 2) a layer pooled among participating
agencies, and 3) a layer of group purchased commercial excess insurance. The most important coverages include auto,
general liability, special dam failure, property damage or loss and workers
compensation. Participating
organizations must meet minimum standards of risk management in order to be
approved for coverage in any of the insurance programs by the JPIA. The JPIA has become a model governmental
risk management organization that provides excellent insurance coverage to its
membership at comparatively reasonable prices.
Each participating
agency Board
must name a member of its Board of Directors to serve on the ACWA JPIA’s Board
of Directors. Executive level management
staff of the agency may be appointed to serve as alternate directors. The JPIA Board of Directors normally meets
twice each year, in conjunction with ACWA’s semi-annual conferences in the
Spring and Fall. For many years
Director Hendrick was PBCSD’s director on the JPIA Board and the General
Manager has served as the District’s alternate director. When Director Hendrick stepped down from
this assignment about two years ago the PBCSD director position on the JPIA
Board was unfilled until PBCSD Director, Rick Verbanec accepted the assignment
last April after he was appointed to the PBCSD Board.
On June 13, 2002, by-laws
for this organization were approved by a majority of independent special district
representatives and the organization became operational in 2003.
The purpose of the Association is to provide
a forum for District directors and managers to communicate with the special
district representatives they have elected to serve on the Local Agency
Formation Commission of Monterey County; and, to afford opportunities for
districts to discuss and formulate strategies regarding issues they face on a
local, state or federal level. The
Association has affiliated with the California Special Districts Association
(“CSDA”) as a Monterey County Chapter of CSDA.
However, CSDA membership is not required for any Monterey County special
district to participate in the local association. Director Laska is presently designated as PBCSD’s representative
to the Association and Director McCullough is the alternate representative. The
Association has been holding quarterly dinner meetings at Fort Ord. District managers and fire chiefs are
associate, non-voting representatives.
Various districts’ staff members provide staff assistance to the
Association on a voluntary basis.
The CAWD owns and
operates wastewater treatment and disposal facilities, and has contracted with
PBCSD to reserve one-third of its treatment capacity to this District. The terms of the contract require PBCSD to
share one-third of all treatment plant capital costs and to pay for treatment
and disposal costs on the basis of flow.
The original contract was executed in 1969 and amended in 1978 and 1994,
the latter amendment being a comprehensive renegotiation of the whole
contract. During the earlier years of
the relationship between CAWD (previously, “Carmel Sanitary District”) and
PBCSD (prior to 1982,”Pebble Beach Sanitary District”) the relationship was at times
contentious, even litigious. In an
attempt to improve the relationship the two governing boards agreed in the late
1970’s that they would each assign a director and the district’s general
manager
to attend the districts’ board meetings, in
order to keep informed and improve communications. That tradition has continued and matured over the years, and has
contributed significantly to the development of a very cohesive working
relationship between the two Boards and their staffs. Both Boards have always rotated the assignment among directors on
an equal basis, although the frequency of assigned meetings and the individuals
assigned are discretionary decisions of the Board.
Monterey Regional
Waste Management District (“MRWMD”):
Following your
Board’s recommendation, on December 19, 2003 the MRWMD Board appointed Director
Laska to serve on the MRWMD Board of Directors as an “at-large” director for a
four-year term, beginning January 1, 2004.
In addition, your Board has appointed Director Laska to
serve concurrently on the MRWMD (financing) Authority
Board. Director Laska’s terms as
director on the District and Authority Boards will expire December 31,
2007. The MRWMD Board meets monthly on
the third Friday of the month and the Authority Board meets infrequently, but
usually on the same day as the District Board.
The
MRWMD provides landfill and recycling services for all Monterey Peninsula
cities, and unincorporated areas of northern Monterey County, Carmel Valley,
the Big Sur coast and this District. In December 1995 the MRWMD offered PBCSD
membership on the Board of the newly formed MRWMD Authority, which was created to provide public financing for
major capital improvements at the MRWMD landfill. In addition, the MRWMD appointment of PBCSD Director Laska fills
an “at-large” seat on the District
governing body. The appointment of an
at-large director to the MRWMD Board of Directors is the discretionary
responsibility of that governing body, as no specific local government entity
is named in the MRWMD’s state enabling act.
RA