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UTILITY
SOUTH TAHOE PUBLIC UTILITY DISTRICT
Richard Solbrig, General Manager Paul Sciuto, Assistant General Manager
Mary Lou Mosbacher, President BOARD MEMBERS Dale Rise, Vice President
James R. Jones, Director Eric W. Schafer, Director Ernie Claudio, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
DECEMBER 3, 2009
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
December 3, 2009, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe,
California.
to BOARD OF DIRECTORS: ROLL CALL
President Mosbacher, Directors Rise, Claudio, Jones,
Schafer
STAFF:
Solbrig, Sharp, Sciuto, Hughes, Hussmann, Noble,
Hammond, R. Johnson, Bird, Curtis, Henderson,
Rasmussen, Morse, Hoggatt, Attorney Kvistad
GUESTS:
Anders Hauge, Melanie Greene, Garth Ailing /Hauge
Brueck; Eric McGrath /Pogge Meyer Engineering;
Larry Mace /Grant Thornton; Bob Tucker /Lahontan;
Chris Cefalu
Chris Cefalu led the pledge to the flag. PLEDGE OF ALLEGIANCE
Moved Rise / Second Schafer / Passed Unanimously CONSENT CALENDAR
to approve the Consent Calendar as submitted:
a. Employee Assistance Program — Authorized
execution of a contract with CSAC Excess
Insurance Authority to provide employee assist-
ance program services to District employees and
their families, in the amount of $3,341;
tow
b. Approved Regular Board Meeting Minutes:
November 19, 2009.
REGULAR BOARD MEETING MINUTES - DECEMBER 3, 2009 PAGE - 2
Larry Mace, Grant Thornton, reviewed the results of PRESENTATION: REPORT ON
the 2009 financial audit. He reported no adjustments 2009 FISCAL YEAR FINANCIAL
were necessary. He also reported that federal grant STATEMENT AUDIT
requirements necessitated a second audit. His
experienced team was very complimentary of the
District's grant administrators. The resulting reports
will be very positive.
ITEMS FOR BOARD ACTION
Staff and the Finance Committee reviewed this item SELF - INSURED HEALTH PLAN
and recommended the stop loss coverage carrier, RENEWAL
Gerber, be changed to a new carrier, QBE, who offered
the best renewal rates.
After analysis by BB &H, staff and the Finance Commit-
tee recommended increasing the specific stop loss
deductible. They also recommended to continue using
the current third party administrators to provide services
to the District's self insured health plan.
Moved Claudio / Second Schafer / Passed Unanimously
to: (1) Approve renewal of stop Toss carrier with QBE
Insurance Group; (2) Approve specific stop Toss deduc-
tible level of $75,000; and (3) Approve renewal of third
party administrators with CDS Group Health and
Universal Health Network.
Nancy Hussmann reported on recommended revisions PLAN DOCUMENT FOR SELF -
to the Plan Document: INSURED HEALTH PLAN
Effective January 1, 2010, there are two federal man-
dates pertaining to health insurance coverage pertaining
to mental health /substance abuse treatment, and leaves
of absence and coverage for dependent children who
attend post- secondary schools.
Additionally, the District changed the provisions related
to occupational and physical therapy, to the tests
required of young children, and added foot surgery
procedures.
Moved Schafer / Second Claudio / Passed Unanimously
to approve revisions to the Plan Document.
BB &H performed an analysis to determine the approp- SELF - INSURED HEALTH PLAN
riate funding level to fund claims and fix costs for the RENEWAL — FUNDING LEVEL AND
self- insured health plan. Due to the plan's good claim COBRA RATES
experience in 2009, the projected claims for 2010 is
lower than the projections for estimated claims in the
analysis for the funding level for 2009.
REGULAR BOARD MEETING MINUTES — DECEMBER 3, 2009 PAGE - 3
The Finance Committee and staff reviewed this item SELF - INSURED HEALTH PLAN
C and recommended that COBRA rates for 2010 remain RENEWAL — FUNDING LEVEL AND
the same as 2009. By maintaining the current funding COBRA RATES
level, the plan's reserves can be built up to a more (continued)
acceptable level.
Moved Claudio / Second Rise / Passed Unanimously to
approve 2010 funding level and COBRA rates at the
same level as the 2009 funding level and COBRA rates.
Paul Sciuto reported the repairs are still underway. Most SNOWSHOE THOMPSON DITCH
of the repairs are covered under warranty from the work NO 1 / MILLICH DITCH WASHOUT
performed in early summer. Sierra Erosion is on site
making repairs; straw bales will be placed at the bottom
of Millich soon. Staff installed a modified French drain to
direct flows away from the steep slope. Since it snowed,
all repairs cannot be made right away; some must be
postponed until spring. The emergency declaration is
expected to be terminated by the December 17 Board
meeting.
Moved Schafer / Second Jones / Passed Unanimously
to continue emergency action of November 5, 2009.
Moved Schafer / Second Rise / Passed Unanimously PAYMENT OF CLAIMS
k le to approve payment in the amount of $1,626,177.47.
Water and Wastewater Operations Committee: Director BOARD MEMBER STANDING
Rise reported he attended the November 30 committee COMMITTEE REPORTS
meeting (Director Jones was at the ACWA Conference.)
Minutes of the meeting are available upon request.
Director Rise requested staff assist with improving the
communications between contractors and vendors.
Finance Committee: The committee met December 3.
Minutes of the meeting are available upon request.
Topics of discussion included the annual financial
statement audit, Department of Energy grant application
and potential inclusion of the C -line extension project,
possible postponement of the January 1 capacity charge
adjustments for six months to one year as part of the
Board's intent on working with the community to keep
costs as low as possible, the recommendation to cease
the practice of holding new connection prepaid user
fees immediately, and the preliminary budget schedule.
PUBLIC HEARING SOUTH TAHOE PUBLIC UTILITY
DISTRICT RECYCLED WATER
Jim Hoggatt reported the Final EIR (Environmental FACILITIES MASTER PLAN
Impact Report) was prepared which included responses
k w to comments received on the draft. Anders Hauge,
Hauge Brueck, gave a PowerPoint presentation and
reviewed four master plan projects. He covered com-
ments received and the responses given, modifications
REGULAR BOARD MEETING MINUTES - DECEMBER 3, 2009 PAGE - 4
made to the document and conclusions reached, and SOUTH TAHOE PUBLIC UTILITY
explained the mitigation monitoring program. The DISTRICT RECYCLED WATER
Board also received clarification regarding leasing land FACILITIES MASTER PLAN
and cattle grazing. (continued)
President Mosbacher opened the Public Hearing at
2:55 p.m. to receive public comments on the Final
EIR. No comments were received and the Public
Hearing was closed at 2:55 p.m.
Mr. Hauge reviewed the provisions contained in
Resolution No. 2877 -09, which will certify the EIR
as being a true and complete disclosure of the
impacts of the projects and the master plan, including
adoption of the Recycled Water Facilities Master Plan,
approval of Projects 1, 2, 11, and 12; approval of the
California Environmental Quality Act findings and
statement of overriding considerations, and adopting
the mitigation monitoring program. He also reviewed
the findings contained in Appendix A.
Moved Jones / Second Schafer / Passed Unanimously
to adopt Resolution No. 2877 -09, to certify the final
environmental impact report for the Recycled Water
Facilities Master Plan and adopting findings per CEQA,
400 a statement of over - riding consideration, a mitigation
monitoring and reporting program, adopting the
Recycled Water Facilities Master Plan, and approving
Master Plan projects 1, 2, 11, and 12.
(Director Claudio left the meeting at 3:15 p.m. This
being his last Board meeting, members of the Board
thanked him for his service)
Planning Committee: Director Schafer stated there
should be a transition relative to Alpine County and the
District's recycled water facilities. Now that the plan-
ning stages are complete and the actual projects are
ready to begin, the Master Plan is more appropriately
aligned with the Water and Wastewater Operations
Committee rather than the Planning Committee.
3:15 - 3:45 P.M. MEETING BREAK
Union & Management MOU Ad Hoc Committee: The BOARD MEMBER AD HOC
committee met November 24 to discuss the self- COMMITTEE REPORT
insured medical plan items on this agenda. The idea
to merge the dates of the management and union
contract and medical plan into the same calendar
year was discussed, as well as the suggestion to
hire a facilitator for negotiations.
REGULAR BOARD MEETING MINUTES - DECEMBER 3, 2009 PAGE - 5
The majority of the December 1 meeting was spent EL DOARD COUNTY WATER
on a closed session personnel issue. District represen- AGENCY WATER PURVEYOR
tatives broached the subject of reorganizing the agency. REPORT
The suggestion was made to put the request or plan
in writing for consideration.
Director Jones reported he just returned from the ACWA BOARD MEMBER REPORTS
Conference where issuance of the new $11.1 billion
water bond was a major topic of discussion.
Director Rise reported he will attend the December 9
ECC (Employee Communications Committee) meeting
in place of Director Schafer. He also reported he will
attend the December 9 Green Builders night at the Lake
Tahoe Community College.
Director Schafer reported on several items:
1) A study performed showed that chemicals are being
transmitted to newborns at birth, which could lead to
more testing of water supplies.
2) The Democrats are proposing a stimulus plan to
create jobs, thereby helping them to retain their seats
in the House and Senate.
3) The Supreme Court ruled in a Florida case that
when public funds are used to enhance a beach, it
essentially removes the beach front rights of property
owners. This ruling could easily apply elsewhere.
4) The IRS will be the lead agency to oversee the
national health care plan and determine compliance
with the rules. The good things that the IRS does will
fall by the wayside if they are forced to contend with
societal problems they are not equipped to handle.
5) Some of the agenda topics discussed at a recent
CASA Fed Leg Committee meeting he attended
included: transportation stimulus funding and efforts
to have water and wastewater included; the state
revolving funding program; degradation of the water
quality in the delta is being blamed on wastewater
treatment plants; and the use of wastewater systems
to dispose of pharmaceuticals is causing big problems.
6) He attended the December 2 public hearing held
in Alpine County on the District's Recycled Water
Facilities Master Plan. The only comments received
were from one person concerning fishing at Indian
Creek Reservoir and were not related to the public
hearing.
7) The estate tax law could be repealed as part of
a compromise made under the Bush administration.
Director Mosbacher reported that one member of the
public attended the Luther Pass Pump Station (LPPS)
Power Generation Facility neighborhood meeting held
at her grandson's house.
REGULAR BOARD MEETING MINUTES - DECEMBER 3, 2009 PAGE - 6
General Manager: Richard Solbrig reported on the LPPS GENERAL MANAGER REPORT
4 60 . power generation facility project. The project will bring
back full capacity to the station in terms of power gener-
ation. It will also look nicer and will be quieter. Staff
attended a meeting with Lake Valley Fire Department
(LVFD) about fire suppression requirements on the pro -
ject (TRPA requires LVFD to sign off on the plans). The
fire marshall is opposed to the use of recycled water to
fight fires, and believes it presents health risks to fire-
fighters. El Dorado County Environmental Health will
provide an evaluation to identify any potential related
hazards, and take into consideration that any exposure
would be very limited. LVFD proposed the use of a
gaseous system. Staff is working with consultants to
decide what fire suppression system would be best.
Chief Financial Officer: Paul Hughes reported staff met STAFF REPORT
with City staff to discuss the impacts of the Redevelop-
ment Project No. 2. They presented some estimated
figures and a map of the project area, which mainly
focuses on the south side of the city (the Y section).
If the plan is put into place, the financial impacts to the
District are significant. El Dorado County will also be
severely impacted. The District's special counsel will
present the limited options available to the Board at a
4 0 future meeting.
5:15 P.M. ADJOUNMENT TO CLOSED
SESSION
ACTION / REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION
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. El
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.
No reportable Board action. Pursuant to Government Code
Section 54956.9(a) /Conference
with Legal Counsel — Existing
Litigation: Tahoe Asphalt, Inc., and
Tahoe Asphalt Materials Company,
LLC, vs. STPUD, Case No.
41Iw SC20090104, El Dorado Superior
Court
REGULAR BOARD MEETING MINUTES - DECEMBER 3, 2009 PAGE - 7
5:25 P.M. ADJOURNMENT
C )1
Mary Lou Mosbacher, Board President
South Tahoe Public Utility District
ATTEST: ( 'it ,`
Kathy Sharp`, \Cl --�
erk of the Ooard
South Tand�Public Utility District
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