09-21-06
4..
SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Richard Sol brig , General Manager
Eric W. Schafer, President
BOARD MEMBERS
Paul Sciuto, ~ssistant Mana~er
Duane Wallace, Vice President
James R. Jones, Director
Mary Lou Mosbacher, Director
Kathleen Farrell, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
SEPTEMBER 21, 2006
MINUTES
4.,
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
September 21,2006,2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe, CA
BOARD OF DIRECTORS:
President Schafer, Directors Wallace, Farrell,
Mosbacher. Director Jones was absent.
ROLL CALL
STAFF:
SOlbrig, Sciuto, Sharp, McFarlane, Adams, Cocking,
Brown, Henderson, C. Stanley, Coyner, Curtis, Bird,
Attorney Kvistad
GUESTS: Marv Winer, Tom Pavletic/Municipal Financial
Services; Nancy Jones/PFM Asset Management LLC
Moved Mosbacher I Second Farrell I Jones Absent I
Passed to approve the Consent Calendar as submitted:
CONSENT CALENDAR
a. Approved Regular Board Meeting Minutes:
August 17, 2006.
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Nancy Jones reported on the District's investments.
She presented a handout and covered: historical interest
rates, slower growth and faster inflation, employment
news, housing markets, consumer spending, federal
PRESENTATION: Capital Reserve
Investing, by Nancy Jones, Managing
Director, PFM Asset Manaoement
REGULAR BOARD MEETING MINUTES - SEPTEMBER 21, 2006
PAGE. 2
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and intermediate-term rates, yields, District yields,
investment activity, portfolio characteristics, and the
long-term strategy.
PRESENTATION: Capital Reserve
Investing, by Nancy Jones, Managing
Director. PFM Asset Manaoement
(con't.)
ITEMS FOR BOARD ACTION
4.,
Mike Adams reported one bid was received at the
September 18 bid opening. After reviewing the bid,
he expressed concerns to the contractor that the
price was excessive. The contractor replied the bid
form was confusing, and revised the bid with lower
numbers. (The original bid was $49,000, lowered to
$29,000.) Gary Kvistad stated that a modified bid could
not be accepted but given that only one bid was received
the District could reject the bid and negotiate a contract
directly if certain findings were made by the Board.
Moved Mosbacher I Second Wallace I Jones Absent I
Passed to reject the bid, and made the findings that
going out for bids would not be in the public interest and
would not produce a competitive advantage to the District,
and authorized staff to negotiate a contract with the
bidder directly. (The negotiated contract will be included
on the agenda for the next regular Board meeting for
consideration. )
COLLECTION SYSTEM SPOT
REPAIRS
PUBLIC HEARING
Public hearing notices were published in the
September 15 and 18 legal notices section of the
Tahoe Daily Tribune.
President Schafer opened the hearing at 2:30 p.m.
The District's connection fees consist of a water capacity
unit charge (presently $1 ,997 for new single family
customers), and administrative cost (minimum $150), the
water meter cost, and a physical connection fee. These
fees were last reviewed in 2004.
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Municipal Financial Services, with the assistance of staff,
has updated the District's water capacity charges to reflect
the current water system capacity. Actual increase
calculated was 310.7% and was reviewed by the Board
Finance Committee. In addition, fees were developed
for fire protection only services in areas where domestic
water from other purveyors may be available. Ordinance
PUBLIC HEARING: ORDINANCE
NO. 497-06: WATER CONNECTION
FEES
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REGULAR BOARD MEETING MINUTES - SEPTEMBER 21, 2006
PAGE. 3
No. 497-06 reflects the outcome of the study and phasing
the results at a 36% increase per year in the capacity unit
charge for each of the next five years.
If adopted, the new charges will take effect on January
1,2007. Charges for 2008 to 2011 will also be effective
on January 1 of the respective years. Years subsequent
to 2011 will be adjusted using the ENR 20-City Construction
Cost Index, until such time as another study is performed.
Marv Winer and Tom Paveltic, consultants for Municipal
Financial Services, gave a PowerPoint presentation and
provided detailed information that is included in their final
report.
No public comments were received. President Schafer
closed the public hearing at 3:10p.m.
Moved Farrell I Second Wallace I Jones Absent I Passed
to enact Ordinance No. 497-06 to update the water
connection fees.
PUBLIC HEARING: ORDINANCE
NO. 497-06: WATER CONNECTION
FEES
(con't.)
Moved Wallace I Second Mosbacher I Jones Absent I PAYMENT OF CLAIMS
-.., Passed to approve payment in the amount of $906,291.60.
\r
Ms. Agee, who requested to appear before the Board,
was not present. Lisa Coyner explained the request
for relief of sewer bill. Ms. Agree, who owns a second
home at 1021 Grass Lake Road, suffered from a
catastrophic fire, which left her home inhabitable. She
does not expect her home to be rebuilt and ready to
move into until 2008. As a result, Ms. Agee would like
additional relief from her sewer bills. The District has
already waived its customary two quarters (six months).
A similar request considered by the Board in the past
involved a primary residence. In that situation, since it
was a primary residence, and financial hardships applied,
it met the criteria of the Helping Hands Outreach program,
and two quarters were funded.
Moved Farrell I Second Wallace I Jones Absent I Passed
to deny the request for additional relief of the sewer bill.
Ms. Agee can apply to the Helping Hands Outreach
program, and if qualified, can seek additional funding.
REQUEST TO APPEAR BEFORE
THE BOARD RE: 1021 GRASS
LAKE ROAD
REGULAR BOARD MEETING MINUTES - SEPTEMBER 21,2006
PAGE. 4
'-'
Water and Wastewater Operations Committee: The
committee met September 18. They also toured the
arsenic and corrosion pilot treatment system. Minutes
of the meeting are available upon request.
Finance Committee: The committee met September 18.
Topics of discussion included: recent grants, audit results,
and the customer water conservation rebate program.
Minutes of the meeting are available upon request.
Leoal Services Ad Hoc Committee: The committee met
to discuss Hatch & Parent's fee schedule.
Director Mosbacher reported on her attendance at the
Alpine County Board of Supervisors.
Director Wallace reported he received his certificate
for Ethics training.
President Schafer reminded board members that if
they have questions regarding an agenda item, it is okay
to contact that staff person directly for clarification. He
cautioned against giving staff direction; policy dictates
'" directives must go through the general manager to assign.
Director Wallace reported on efforts by the agency to
reduce the amount of property tax returned to the
District, and on the proposal to change the makeup
of the Board to give EID a permanent purveyor seat.
Staff will prepare a presentation for the Water Agency's
October 2 meeting related to their proposed changes
to Policy NO.3.
General Manaoer: Richard Solbrig reported on two items:
1) A draft MOU was received from the California Tahoe
Conservancy. It contained unacceptable language that
would make the District responsible for all utility relocation
costs for erosion control projects. The MOU is required
by the USFS as part of a grant application for federal
funding and does not need to address this issue. The
District submitted comments but has not received formal
responses on the recommended changes.
2) The District's new Preventive Routine Care program
was discussed with Dr. Bergner and the committee.
This program will place emphasis on the importance of
, having regular preventive exams done in order to prevent
..... more serious illnesses, fatal conditions, etc. This program
was developed to reduce health insurance costs.
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD AD HOC COMMITTEE
REPORTS
BOARD MEMBER REPORTS
EL DORADO COUNTY WATER
AGENCY REPRESENTATIVE
REPORT
GENERAL MANAGER REPORTS
REGULAR BOARD MEETING MINUTES - SEPTEMBER 21, 2006
PAGE. 5
District Information Officer: Dennis Cocking reported on
\., future Board presentations.
3:50 - 4:00 P.M.
5:05 P.M.
STAFF REPORTS
MEETING BREAK AND ADJOURN-
MENT TO CLOSED SESSION
RECONVENED TO REGULAR
SESSION
ACTION / REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION
No reportable Board action.
'" No reportable Board action
No reportable Board action.
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Pursuant to Government Code
Section 54956.8/Real Estate
Negotiations:
Negotiating Parties: Board Ad Hoc
Committee, General Manager,
Assistant General Manager/Engineer,
Chief Financial Officer
Under Negotiations: Price and Terms
Property Identification: Lukins Water
Company, 2031 West Way, South
Lake Tahoe. Ca.
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel - Existing Litigation re:
Beth Jett, Kendall Pearce, and
Pearce Family Trust Dated 1-20-88
vs. STPUD, Cox & Cox Construction,
Inc., a California Corporation, Nimbus
Engineers, a Nevada Corporation and
Does 1-100, Inclusive, Civil Action
No. PC 20050567, Superior Court,
County of EI Dorado. State of Ca.
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel - Existing Litigation:
STPUD vs. 1442.92 Acres of Land
in Alpine County, Ca.; et aI., United
States District Court for the Eastern
District of Ca., Sacramento Division,
Case No. CIV S-02-0238 MCE JFM
REGULAR BOARD MEETING MINUTES - SEPTEMBER 21,2006
PAGE. 6
No reportable Board action.
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel - Existing Litigation re:
Meyers Landfill Site: United States of
America vs. EI Dorado County and
City of South Lake Tahoe and Third
Party Defendants, Civil Action No.
S-01-1520 LKK GGH, U.S. District
Court for the Eastern District of Ca.
\-r
No reportable Board action.
Pursuant to Government Code
Section 54956.9(b )/Conference with
Legal Counsel - Anticipated Litigation
(Two Cases)
5:05 P.M.
ADJOURNMENT
"
~~
Eric W. Schafe , Bo President
South Tahoe Public Utility District
ATTEST:r ~~.<,-~ C)
Kathy Sharp lerk of the B6ard
South Tahoe Public Utility District
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