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.
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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.
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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.
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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.