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09-05-85 MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT SEPTEMBER 5, 1985 The Board of Directors of the South Tahoe Public Utility District met in a regular session, September 5, 1985, 4:00 P.M., 1900 Lake Tahoe Boulevard, City Services Center. BOARD OF DIRECTORS: President Madden Directors Olson, Jones, Mason, Wynn STAFF: Cofer, Baer, Fischer, Mamath, Vonderscher, Plasterer, G. Eppler, Cartwright, Trebotich, Schroeder, Miller, Tiran, Attorney Weidman GUESTS: Marge Springmeyer - Agenda Item No. 2 Manager Cofer noted Items 6, 7, 8, and 9 had been added since the Workshop on 9/3/85. None Moved Wynn/Second Jones/Olson Abstained/Passed to approve 8/12/85 Adjourned Regular Board Meeting. Moved Jones/Second Olson/Wynn Abstained/Passed to approve 8/22/85 Regular Board Meeting. None None Director Jones reported he had met with the E1 Dorado County Water Committee August 26th. The committee approved several recommendations to the E1 Dorado County Water Agency. 8/23/85 - So. Shore Water Purveyors re cross connection program 8/26/85 - E1 Dorado County Water Committee 8/26-27 - Consensus Building Committee, TRPA 8/28/85 - TRPA Project Review/Plant Mod- ification permit approved 9/3/85 - 4:00 P.M. - Workshop/Agenda Items ROLL CALL CORRECTIONS/ADDITIONS TO AGENDA CONSENT CALENDAR APPROVAL OF BOARD MINUTES REPORT BY BOARD MEMBERS SHOP STEWARD'S REPORT COMMITTEE REPORTS PAST MEETINGS REGULAR BOARD MEETING MINUTES - SEPTEMBER 5, 1985 Page 2 None Attorney Weidman reported on an E1 Dorado Irrigation District (EID) meeting he had attended with Manager Cofer related to action item No. 6 (SOFAR Project). None None MANAGER'S REPORT ATTORNEY'S REPORT PROGRAM MANAGER'S REPORT CO~{MENTS FROM AUDIENCE BOARD ACTION Moved Wynn/Second Olson/Passed Unan- imously to approve payment in the amount of $276,772.05. Presented by Manager Cofer who explained the District's need to acquire high capability land to meet the TRPA require- ment. Three parcels adjacent to the treatment plant consisting of a total of 56 acres met the criteria. Property owner, Marge Springmeyer, was present and stated her objections to the sale and questioned attorney, Mel Beverly's authority to sell the property in question. Attorney Weidman responded the documents he had in hand named Mel Beverly as the selling officer to sell the property contingent on approval of the sale by the court. Director Olson stated at this point in time he felt the best way to get an an- swer would be for the Board to direct staff to make an offer to purchase the property to the selling officer, Mel Beverly. He further stated Ms. Spring- meyer's complaint should be directed to the court at the time the offer was to be approved or disapproved by the court, as the argUmEnt she brought up at this meeting was a legal matter. Moved Olson/Second Jones/Passed Unanim- ously to authorize staff to make an offer in the amount of $181,480 on Parcel Nos. 25-041-07, 25-051-18 and 25-061-19 (adjacent to District). to the selling officer, Mel Beverly. PAYMENT OF CLAIMS PLANT MODIFICATION PROJECT: TRPA PERMIT, SPECIAL CONDITION NO. 4/LAND COVERAGE PURCHASE OFFER REGULAR BOARD MEETING MINUTES- SEPTEMBER 5, 1985 Page 3 Presented by Rich Tiran. Moved Olson/Second Mason/Passed Unan- imously to authorize award of bid to low bidder, Golden Bear Equipment Co., in an amount not to exceed $15,181.32. Presented by Rich Tiran. Moved Mason/Second Wynn/Passed Unan- imously to authorize award of bid to low bidder, Sargent Welch Scientific, in an amount not to exceed $4,158.38. Presented by Gene Eppler. Moved Olson/Second Wynn/Passed Unan- imously to authorize' obtaining' informal bids and accepting the best bid in relation to time and equipment for an amount not to exceed $5,000.00. Presented by Attorney Weidman who explained the background of the project and referenced the Summary of Second Informal Meeting dated September 4, 1985 and included in the Board Agenda Packets. The Summary shall become a part of these minutes by reference herein as Attachment Moved Olson/Second Jones/Passed Unan-. imously to authorize Attorney Weidman and Manager Cofer to enter into a unified response with other affected Public District Water Purveyors as outlined in Attachment "A" regarding the SOFAR Project. Presented by Rich Vonderscher. Moved Wynn/Second Jones/Passed Unan- ~mously to authorize purchase (which includes valves) for an amount not to exceed $4,929.00. Presented by Gene Eppler with comments from Attorney Weidman. Moved Olson/Second Wynn/Passed Unan- imously to authorize payment of claim in the amount of $2,000.00 contingent on a signed RELEASE OF CLAIM by Melvin Schwake, Jr. PURCHASE OF T~REE ELECTRIC' UTILITY VEHICLES/BID #85-86-16 PURCHASE OF STERILMATIC AUTOCLAVE UNIT FOR DISTRICT LABORATORY/BID #85-86-17 CLEANING 5,000 FT. OF DIAMOND DITCH - ALPINE COUNTY SOFAR PROJECT (South Fork American River) FALLEN LEAF LAKE CENTRIFUGAL PUMP SCHWAKE CLAIM: DAMAGES TO DIAMOND VALLEY RANCH (ALPINE COUNTY) FROM ARCHAEOLOGICAL WORK REGULAR BOARD MEETING MINUTES - SEPTEMBER 5, 1985 Page Presented by Attorney Weidman who advised the Board to deny the claim. Moved Jones/Second Wynn/Passed Unan- imously to deny claim. 9/13/85 - 10:00 A.M. Water Purveyors 9/16/85 - 4:00 P.M. Workshop/Agenda Items 9/19/85 - 4:00 P.M. Regular Board Meeting 9/23-24 - CA & NV Water Pollution Control Assoc. Conference - So. Lake Tahoe Consensus Building Committee, TRPA September 9, 10, 18-19, 26-27 October 16-17, 23, 29-30 4:50 P.M. CLAIM: DOUG AND VICKI NIBAUER NOTICE OF FUTURE MEETINGS ADJOURNMENT ATTEST: PAT A. MAMATH, CLERK OF BOARD SOUTH TAHOE PUBLIC UTILITY DISTRICT REGULAR BOARD MEETING MINUTES - SEPTEMBER.'5, 1985 ATTACHMENT "A" SUMMARY OF SECOND INFORMAL MEETING PUBLIC DISTRICT WATER PURVEYORS (MEMBER UNITS) September 4, 1985 The following attended the second informal meeting of Public District Water Purveyors this date: 3. 4. 5. 6. 7. 8. 9. 10. Gene Larsen, EID Director Kay Hunt, EID Director Terry Holm, EID Director Hal Knecht, EID Director Mike Kenny, EID Manager Noble Sprunger, EID Attorney James R. Cofer, STPUD Manager David C. Antonucci, TCPUD Manager Preston Kelly, TCPUD Director John C. Weidman, STPUD and TCPUD Attorney This meeting was a follow up to a general discussion of the prior informal heeting held on August 22, 1985. Water Agency Contracts The persons present indicated agreement with relation to the Water Agency Contracts as follows: 1. The history of the 1979 EID/Water Agency Con- tract is that the recollections of those present indicated.the following: A. That EID was entitled to consumptive use and power revenues from 30,000 acre feet of water from Alder Creek Reservoir at $5.00 an acre foot. B. This water was to be exempted from any Power Purchase Contract. C. EID was to use most of the water in the earl~ stages of the project for power revenues to pay for the transmission and distribution. D. Th~ net benefits of the SOFAR project were to be returned to the Water Agency for distribution as authorized by the Agency Act. E. The SOFAR project was a water project and generation of electrical power was to be a secondary bene- fit to pay for the water. - 2 - 2. The history of the other members unit c~ontracts (STPUD, GDPUD, and TCPUD) is that the recollections of those present were that these contracts were renewable annually..only for the purpose of determining whether or not to levy annual taxes for tax transfer, but that from the ~nception, the~e member unit Districts had rights to return of Texas Hilt ~money and net benefits determinable from the SOFAR project. 3. The power revenues of EID's 30,000 acre feet have been included in the negotiations for financing the SOFAR project. Therefore, EID has no power revenues to pay for the necessary transmission and distribution of water. Also, there is a water conservation requirement~ imposed on the 30,000 acre feet for consumptive use. The cost to EID of this water con- servation may exceed $20,000,000.00. 4. The SOFAR negotiations have included 8,000 acre feet of EID water, 4,000 acre feet is spill water at Sly Park, and 4,000 acre feet is allegedly surplus water at Sly Park. EID has received no compensation for this water. 5. EID requires transmission and distribution of the Texas Hill water for consumptive use. Phase I of this project will cost $13,'000,000.00 to Bray Reservoir and includes treatment facilities. Phase II includes $9,000,000.00 more for transmission and distribution and $8,000,000.00 for treatment. EID desires that Phase I be included in the SOFAR project and that $9,000,000.00 be provided as early as possible for Phase ii distribution from net benefits of the SOFAR project. EID con- templates paying $8,000,000.00 for Phase II treatment, a State health requirement, through connection charges and service rates. 6. The value of the 30,000 acre feet of water through the EID powerhouse is estimated at $100.00 an acre foot annually. 7. Two members of the EID Board and two members of the Water Agency Board constitute the SOFAR Management Authority created through the Joint Powers Agreement. EiD and the Water Agency are presently negotiating for inclusion of EID Phase I in the SOFAR project and use of early net benefits to defray the cost of EiD Phase'II transmission and distribution. This is for compensation for the power revenues to be used from the 30,000 acre feet of water included in the present financ~.ng for the SOFAR project and the 8,000 acre feet mentioned above. 8. The other member entity Districts desire to retain by contract their rights to net benefits to a determinable portion of the net benefits of the SOFAR project, as well as the present reimbursement for monies used to acquire Texas Hill properties. - 3 - 9. 'Ebasco has verbally offered to.include Phase I in the SOFAR project providing they get all of the net benefits for the first six years from the SOFAR project. 10. Persons~.present will recommend to their respec'tive Boards at an early date that the Joint Powers Agree- ment Section- 5.5 contain .~ r~fe~rence ~o a ~fixed percentage of the net benefits for all member unit Districts, as well as include Phase I in She EID~transmission, distribution, and · treatment project for early net benefits to finance Phase II of the EID_project, and that all pubticrmember unit District Agreements be consolidated in one member unit contract to re- fleet the same, as well as retain the-present reimbursement for monies used to acquire Texas Hil-t properties. 11. The EID Negotiating Committee will propose to the Water Agency at their negotiations on Monday afternoon, September 9' ~9_85, 'a~f~xed percen~age~-of.~net~ SOFAR benefits to be returned to each member unit District and the Water Agency as. ~ollow~-:~ ~ Y= Year After.?roject is .in--Ope~ation ~'..~ Y1 -' Y6 ~ Return~ f~r debt service (Pay for~ Phase I - EID Project) B.~ Y7'- .Y10 - 80% to-EID to pay for EID Phase II transmission and distribution, 6 2/3% to Water Agency, and 13 1/3% to other three member unit Districts. ~. Yll - ~25 - 42~% to EID, 4.2~% to other member unit Districts, 15% to Water Agency. D. Y26 - Y40 - Subject to re-negotiation, but if not in agreement, Yll - Y25 distribution applies. E. ~Y40 - Y50 - Subject to re-negotiation, but if not in agreement, Yll - Y25 distribution applies. Note: The current financing plan is for 40 years, whereas the Federal Energy Regulatory Commission license is for 50 years. ~ 12. The Joint Powers Agreement shall be amended to reflect the above and all member entity Agreements be con- solidated in one member unit District Contract to reflect the above. These contracts should include the current Texas Hill reimbursements. - 4 - 13. Further discussion will be held regarding the feasibility and practicality of forming a Public District Water Purveyors Association to facilitate cooperation between the member unit Distriaa~ 14. Tax transfer funds for the fiscal year t985-86~sha!l be distributed as in past years. 15, ~The sOFAR net~-benefits should b~ ~ore clearly defined so that they will not be subject to minimization. 16. This summary ig not to be distributed ~ publicly to the Water Agency at this time, but to be used as a negotiating tool, first for the EID/Water Agency Joint Powers Agreement negotiations on September 9, 1985, and thereafter, the summary' will be reviewed for further recOmmended action. ~ ~ 17. ~The ~ecommendation to-the ~r~spective Boards of the~Districts of those present .±s that the Boards approve the concepts.-~set forth in this summary.