12-06-90MINUTES
REGULAR BOARD MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
DECEMBER 6, 1990
The Board of Directors of the South Tahoe Public Utility District met
in a regular session, December 6, 1990, 4:00 PM, City Council
Chambers, 1900 Lake Tahoe Boulevard.
BOARD OF DIRECTORS:
Chairman Mason, Directors Onysko,
Pierini, Sinclair, Mosbacher
ROLL CALL
STAFF;
Manager Baer, Solbrig, Fischer,
Mamath, Miller, Swain, Eddy,
Brown, Taylor, B. Eppler, Powers,
Cartwright, Schnakenberg, Bonnet,
Gilbert, Hydrick, Hoggatt, Trella,
Adamski, Capitani, M. Gray
GUESTS:
Bob Weeteling, Jim Jones,
Barney Mosbacher, Connie Ross,
Tim Willis/Tahoe Daily Tribune,
Keith Klein/City Council
Keith Klein, City Council and
TRPA Board Member for the City,
gave an updated report on Resi-
dential Allocations beyond 1991.
He stated the TRPA Board intended
to act on this item at their
12/19/90 Board Meeting.
Discussion followed regarding avail-
able sewer units, TRPA regulations
and various meetings regarding this
item.
Ms. Luntao was not able to attend
the meeting, but Bob Eppler in-
formed the Board she had executed
a payment agreement with the District.
REQUEST TO APPEAR BEFORE BOARD:
LILIA LUNTAO
'No Board Action.
ST054555
REGULAR BOARD MEETING MINUTES - DECEMBER 6, 1990 PAGE - 2
Attorney Weidman requested
Item 18/Aqreement between Lake
Tahoe Community College, U.S.A,
and the District be removed from
the Action Calendar. He asked
the Board to review the Agreement
and if they had any problems with
it to let Manager Baer know prior
to the College Board Meeting on
12/11/90.
CORRECTIONS/ADDITIONS TO AGENDA
OR CONSENT CALENDAR
Director Pierini requested the
following information:
1) The amount of money actually
transferred;
2) The date of the transfer and
when it was paid; and
3) Copy of the original documents.
Chairman Mason reported Consent
Item i/Approval of Board Minutes;
Item 4/New Trucks: Pump Station
Operations; and Item 6/Statement
of District Investment Policy were
removed from the Consent Calendar
at the 12/3/90 Workshop to be
presented as Action Items at today's
meeting.
Director Onysko requested to change
the order of action items presented
and to close the meeting with Action
Items 12, 6, 11 and 14.
Moved Onysko/Second Mosbacher/
Passed Unanimously to approve
corrections/additions to Agenda
and Consent Calendar.
Moved Pierini/Second Sinclair/
passed Unanimously to approve the
following Consent Calendar Items:
CONSENT CALENDAR
1) Authorized staff to implement
two-week sewer/water disconnection
procedures for delinquent accounts
in accordance with Ordinance Nos.
372 & 373 on the attached list.
The list becomes a part of these
minutes by reference herein.
2) Authorized purchase from Wedco,
in the amount of $6,447 plus tax for
Pump #4 Backup Auto Transformer/Luther
Pass Pump Station.
ST054556
REGULAR BOARD MEETING MINUTES - DECEMBER 6, 1990 PAGE - 3
3) Approved Charles Butts Constr.
Closeout Agreement & Release of
Claims and Notice of Completion/
Fallen Leaf Lake Sewer Collection
System Improvements.
CONSENT CALENDAR (Cont.)
4) Authorized purchase of
HP 386/QS/2 Lab office Computer
from Hewlett Packard for an amount
not to exceed $6,000.
No reports on regular committees.
Later in the meeting, Director
Mosbacher reported on the Rotenone
Spill by the Calif. Dept. of Fish
& Game and stated she would like
to go to the January Lahontan Board
Meeting as this would be an item on
their Agenda. She wondered aloud if
the Dept. of Fish & Game would be
fined for their spills--the same as
this District and others had been
fined. She felt the spills were due
to actual mistakes by Fish & Game,
and not caused accidentally like the
District's power outages.
BOARD MEMBER COMMITTEE
REPORTS
Director Mosbacher asked how she
was to get additional information
on suggestions that come in from
the Employees Suggestion Boxes.
She wanted to know if she should
ask staff or talk to Manager Baer
about it. Chairman Mason said the
suggestions were given to individual
Board Committees--depending on the
subject.
ITEMS FOR BOARD ACTION
Presented by Carol Swain.
Moved Pierini/Second Sinclair/
Passed Unanimously to athorize
purchase of upraded PC System
Controller & related software
in the amount of $10,364.20.
Director Sinclair said he felt the
the questions to candidates should
be released at the earliest possible
date. Pat Mamath said this had been
done after direction from the Board
at the 12/3/90 Workshop Meeting.
PHONE SYSTEM UPGRADE
ASSISTANT TO LEGAL COUNSEL
ST054557
REGULAR BOARD MEETING MINUTES - DECEMBER 6, 1990 PAGE - 4
Director Pierini offered a
schedule dividing the interviews
into time segments.
ASSISTANT TO LEGAL COUNSEL
(Continued)
Discussion followed; Other Board
Members concurred with the inter-
view schedule.
No Board Action.
Presented by Director Onysko,
who said based on the discussion
with staff at the 12/3/90 Workshop,
this item should be tabled at this
time.
HEAVY MAINTENANCE BUILDING
SHOWERS, ETC. FOR STAFF
Richard Solbrig answered Director
Mosbacher's question regarding
alternative measures for showers,
(portable showers).
Director Onysko stated this project
was the result of a suggestion made
through the Board's Suggestion Box.
He requested Staff look at the
possibility of another toilet and
shower, as well as another locker
or two in the existing bathroom
facility floor plan.
Director Sinclair voiced his views
on the Board's involvement with
this project. He felt the Board
should not be involved until staff
has come before the Board with a
plan that has been thoroughly
evaluated.
No Board Action.
Director Onysko requested to
to commence search for various
companies that offer negotiating
services. He thought the District
should have a file of qualified
firms in the event there was a
need for this type of service in
the future.
OUTSIDE CONSULTANT SERVICES
FOR UNION NEGOTATIONS
ST054558
REGULAR BOARD MEETING MINUTES - DECEMBER 6, 1990
PAGE - 5
Director Sinclair said he hoped
in the near future a Personnel
Director would be considered for
the District. He did not wish to
see any type of division created
between staff, directors, and the
employees. He was reluctant to
release any negotiating responsi-
bilities to an outside entity. He
again emphasized the Board should
establish policy and let the staff
implement it with the personnel on
board.
OUTSIDE CONSULTANT SERVICES
UNION NEGOTIATIONS (Cont.)
Director Pierini stated he viewed
this in the same manner as hiring
an Engineering firm for their
expertise. Director Onysko said
the motion was not to hire an
outside negotiator, but to request
for qualifications from companies
and have them on file for future
reference, if needed.
Manager Baer answered Director
Mosbacher's question regarding
Staff's time involvement for this
request.
Moved Onysko/Second Pierini/
Passed Unanimously to commence
search for selection of an outside
Negotiator for District/Union
Contract Negotiations by accepting
letters from firms qualified in this
field.
Director Onysko stated he did not
feel there was a need for action
on this item.
MANAGEMENT VEHICLE ALLOWANCE/
VEHICLE USE
It was the consenus of the Board to
direct the Manager to communicate
with the Management Staff regarding
their input on the following issues:
1) $150/Vehicle allowance shown
as $150/Income for those management
employees who receive a vehicle
allowance.
2) Limit assignment of District
vehicles to Manager, Assistant
Manager and Manager of Land
Application.
(The above would be addressed in the
1991 Management MOU's).
No Board Action.
ST054559
REGULAR BOARD MEETING MINUTES - DECEMBER 6, 1990
Presented by Director Onysko.
Moved Onysko/Second Sinclair/
Passed Unanimously to table this
item.
PAGE - 6
NEW CHIEF SENIOR OPERATOR/LAND
APPLICATION SYSTEM
Presented by Director Onysko.
COMPUTER PROCUREMENT
Carol Swain answered questions
regarding staff time involved
in the solicitation of bids and
the research involved for this
item.
Moved Onysko/Second Mosbacher/
Passed Unanimously to authorize
staff to send out requests for
price bids on seven (7) HP 386-SX
computers to several HP computer
dealers solely for the purpose of
bringing that information back to
the Board.
Presented by Director Onysko.
DISTRICT WORD-PROCESSING SOFTWARE
This item was discussed at the
12/3/90 Workshop.
No Board Action.
Presented by Director Onysko, who
said he was not prepared to offer
a motion at this time.
SEPARATION OF PRESENT WASTEWATER
OPERATIONS GROUP INTO TWO
DEPARTMENTS
No Board Action.
Moved Pierini/Second Mosbacher/
Passed Unanimously to approve
payment in the amount of
$1,002,191.73.
PAYMENT OF CLAIMS
Moved Pierini/Second Sinclair/
Mosbacher Abstained/Passed to
approve Board Meeting Minutes of:
BOARD MEETING MINUTES
November 1, 1990/Regular Meeting.
November 12, 1990/Special Meeting.
Director Pierini said he would
like to defer this item after
the mid-budget review (2nd meeting
in January) because of many other
unbudgeted purchases.
NEW TRUCKS:
OPERATORS
PUMP STATION
ST054560
REGULAR BOARD MEETING MINUTES - DECEMBER 6, 1990
PAGE - 7
Rick Hydrick said his Department
(Pump Crew) could get along until
after the mid-budget review, but
not as efficiently.
NEW TRUCKS: PUMP STATION
OPERATORS (Continued)
Director Pierini suggested use
of a vehicle from another
Department.
No Board Action.
Presented by Kay Taylor.
Moved Pierini/Second Onysko/
Passed Unanimously to approve
and accept Investment Policy as
submitted. (The Policy becomes
a part of these Minutes by refer-
ence herein).
The Executive Session was
requested by Director Onysko.
STATEMENT OF DISTRICT INVESTMENT
POLICY
PERSONNEL MATTER - EXECUTIVE
SESSION
Attorney Weidman said since
there was no complaint against
a specific employee, this should
not be discussed in Executive
Session.
Director Onysko said if that were
the case, he would request No Board
Action at this time.
Presented by Director Onysko.
Moved Onysko/Second Pierini:
To break out the present Customer
Service Department personnel into
a new Department indicated in the
District's hierarchical structure
answering to the Assistant General
Manager with Bob Eppler as the
Manager of the new Department
with his job description modified
accordingly, and a salary increase
of approximately $150/month to the
level of the Finance officer.
CUSTOMER RELATIONS DEPARTMENT
ESTABLISHMENT
The Board Vote was as follows:
Onysko/Yes
Pierini/Abstained
Sinclair, Mason, Mosbacher/No
Motion Defeated.
ST054561
REGULAR BOARD MEETING MINUTES - DECEMBER 6, 1990
PAGE - 8
Chairman Mason said he would like
to have the Staff Organization
Study be done before any changes
were made.
CUSTOMER RELATIONS DEPARTMENT
ESTABLISHMENT (Continued)
Director Pierini felt a change
of this kind should be handled
at the time the January MOU's
were discussed.
Director Sinclair stated a change
of this nature should originate
from the General Manager's office.
He felt the Board had no business
getting into such matters until
it was brought to them, and initi-
ating a request of this nature was
frivolous.
Director Onysko stated he would
like to speak to the notion about
hiring an outside consultant to
evaluate our Organizational
Structure. He said he saw a
tendency to delay action on items
with the expectation that this
proposal will reach the Action
Agenda and pass. He asked to go
on record that he would not support
such a Study and said there were
others that agreed with him.
Director Pierini stated the
General Manager should make
suggestions if he thought there
should be any re-organization and
if so, whether or not the study was
needed. He felt changes should be
made at the time the 1991 MOU's were
done.
Manager Baer stated he did not
envision the Assistant Manager
having the time for the additional
responsibility of the Customer
Relations Department; he was hired
for his Engineering Expertise.
Director Mosbacher said she was not
comfortable authorizing additional
expenditures at this time. She
further said she needed to talk
to Barrie Fischer to know how the
Finance Department related to the
Customer Relations Department.
ST054562
REGULAR BOARD MEETING MINUTES - DECEMBER 6, 1990
PAGE - 9
Director Mosbacher also noted
Bob Baer had only been General
Manager for 4 months and felt
he should be given time to get
things operating the way he wanted
and to have an opportunity to look
at things to determine how they
might be better done and to give
him time to do these changes if
he felt they were appropriate.
CUSTOMER RELATIONS DEPARTMENT
ESTABLISHMENT (Continued)
Director Onysko asked Director
Mosbacher for a time deadline for
her to look into these matters.
Director Mosbacher said 3 to 6
months.
Presented by Director Onysko, who
asked for input from other Board
Members.
CONFLICT OF INTEREST POLICY FOR
EMPLOYEES WITH REGARDS TO TRPA
AND THE LAHONTAN BOARD
Attorney Weidman reviewed the
legal process for this item and
the proper procedures to follow.
He said from a legal point of view,
if the Board wanted to make a change,
first they had to make rules regar-
ding this, then give Notice to the
person(s) involved and allow them
time to appeal to you and give them
reasonable time to get out of what
you think are incompatible duties.
Incompatible duties deals with
certain Government Codes.
It was the consensus of the Board
to direct staff to ask the city and
other Agencies for their policies on
this type of issue and return to the
Board with information at the 2nd
Board Meeting in February.
No Board Action.
Presented by Chairman Mason.
Director Onysko nominated
Lou Pierini for the Chairman.
Motion died for lack of 2nd.
SELECTION OF BOARD OFFICERS AND
EDWPA REPRESENTATIVE
Director Mosbacher nominated
Nat Sinclair for Board Chairman
because he would be running for
re-election next November.
Director Onysko questioned
Director Mosbacher's reasoning
for the nomination.
ST054563
REGULAR BOARD MEE ING MINUT - DECEMBER 6 1990
Moved Mosbacher/Second Sinclairl
Pierini Abstained/Onysko Voted No~
Passed to Elect Nat sinclair as
Board chairman.
Moved Sinclair/Second Mosbacher~
Passed Unanimously to Elect
Lou Pierini as Vice-Chairman.
Manager Baer requested the
immediate appointment of the
EDWPA representative, the
Redevelopment Committee and
the Tahoe Keys Force Main study
Committee.
It was decided the EDWPA repre-
sentative would be Nat Sinclair
with Lou Pierini as the alternate.
The Tahoe Keys Force Main Study
Committee would consist of the
present Operations Committee, and
the Redevelopment Committee would
be Directors Mosbacher & Pierini.
12/07/90 - 10:00 AM, EDWPA @ SLT
city Council Chambers
12/10&ll - 1:00 PM, Assistant Legal Counsel Interviews
12/13/90 - 9:00 AM, Alpine County
Grand Jury
12/17/90 - 4:00 PM, Workshop (Public Meeting)
12/19/90 - 2:30 PM, Scoping Meeting for EIR
12/20/90 - 4:00 PM, Regular Meeting (Public Meeting)
12/22/90 - 4:00 PM, christmas Party @ Valhalla
5:30 PM
PAG_~E- 10
SELECTION OF BOARD OFFICERS AND
EDWPA REPRESENTATIVE (Cont.)
NOTICE OF FUTURE MEETINGS
SOUTH TAHOE PUBLIC UTILITY
BOARD
DISTRICT
ATTEST:
PAT MAMATH, CLERK OF BOARD
SOUTH TAHOE PUBLIC UTILITY DISTRICT
ST054564
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
ACCT. #
18-200-122
18-291-071
22-051-741
22-251-221
22-371-071
23-101-231
23-131-191
23-141-311
23-211-221
23-211-321
23-321-101
23-371-021
23-442-271
23-501-111
23-502-101
23-502-461
23-522-061
23-623-011
23-623-121
23-625-031
23-654~031
ACCOUNTS SUBMITTED FOR AUTHORIZATION
OF DISCONNECTION PROCEEDINGS
DECEMBER 6, 1990
NAME
Shirley Norton
Marita Whittaker
Donald Borges
Betty Johnson
Lowell Heath
James Gerte
Jerry Ross
Adelard Ouellette
E1 Nido Motel
Joseph Thomas
Dave Hobbs
Steve Zigler
Frederick Rianda
Karl Magidson
William Velez
Paul Hale
Jack Chavarria
Sandra Banuet
Steven McGuigan
Cynthia Ferko
John Genzale
SERV. ADDRESS
#12 Spring Creek
~7 Cascade Prop·
2173 Inverness
1920 Kokanee Way
336 Ala Wai #251
2139 West Way
575 James
2014 Thirteenth
2215 Lk. Tahoe Blvd.
2178 Eloise
614 Glorene
1066 & 1074 Second
1909 Thirteenth
753 Clement
752 Clement
804 Clement
1979 Tucker
1821 Shady Ln.
747 Panther
780 Taylor
786 Anita
AMT. DUE
$ 406.72
$ 406.82
$ 400.34
$ 597.37
$ 535.75
$ 522.41
$ 523.40
$ 401.22
$1,214.92
$ 586.00
$ 700.66
$ 491.34
$ 510.77
$ 481.02
$ 481.02
$ 757.00
$ 406.85
$ 481.02
$ 460.52
$ 459.33
$ 471.66
ST054565
PAGE TWO
ACCOUNTS SUBMITTED FOR AUTHORIZATION OF DISCONNECTION PROCEEDINGS
DECEMBER 6, 1990
ITEM ACCT. # NAME
22. 23-661-281
23. 23-732-471
24. 23-733-171
25. 23-733-321
26. 23-761-081
27. 25-225-181
28. 25-302-121
29. 25-312-151
25-342-121
31. 25-394-031
32. 25-491-031
Thomas Bishop
Arnold Garcia
Jack Bergman
Kurt Holobaugh
Randall Redington
John Jamison
James Bussell
Donald Whitehead
Michael McCluskey
Dara Walker
Sandor Csitos
33. 26-085-031 Frank Perez
34. 26-094-281
35. 26-103-131
Philip Patchin
Carol Stark Neal
SERV. ADDRESS
2289 Tahoe Vista
2265 California
2337 Oregon
2288 Washington
888 Tahoe Keys Blvd.
1394 Herbert
1511 Horace Greeley
1566 Horace Greeley
1355 Chinquapin
3412 Bruce
3210 Apple
944 Alameda
734 Modesto
3070 Sacramento
AMT. DUE
$ 440.90
$ 481.02
$ 481.02
$ 483.63
$ 464.36
$ 496.12
$ 518.36
$ 457.62
$ 492.09
$ 401.60
$ 481.02
$ 476.03
$ 669.52
$ 465.82
ST054566
STATEMENT OF INVESTMENT POLICY
(California Government Code Section 53646)
Introduction:
The purpose of this document is to identify various policies
and procedures that enhance the District's opportunities for
a prudent and systematic investment policy. Activities which
comprise good cash management include, but are not limited to:
the expeditious collection of revenue, the control of disburse-
ments, and cost-effective banking relations. In concert with
these requirements are the many facets of an appropriate and
secure short-term investment program.
II.
III.
Scope:
It is intended that this policy cover all funds and investment
activities under the direct authority of the agency.
Objectives:
A. Safety:
It is the primary duty and responsibility of the
Finance Department to protect, preserve and maintain cash
and investments placed in their trust on behalf of the
citizens of the community.
Liquidity: An adequate percentage of the portfolio should
be maintained in liquid short-term securities which can be
converted to cash if necessary to meet disbursement require-
ments. Since all cash requirements cannot be anticipated,
investments in securities with active secondary or resale
markets is highly recommended. Emphasis is on marketable
securities with low sensitivity to market risk. $T054567
Adopted by the Board of Directors at the 12/6/90 Regular Board Mtg. ~
Co
Yield: Yield should become a consideration only after the
basic requirements of safety and liquidity have been met.
Diversification: The investment portfolio will be diversified
to avoid incurring unreasonable and avoidable risks regarding
specific security typgs or individual financial institutions.
Prudence: The agency adheres to the guidance provided by the
"prudent man rule", which obligates a fiduciary to insure that:
"...investment shall be made with the exercise of that degree
of judgment and care, under circumstances then prevailing,
which persons of prudence, discretion and intelligence
exercise in the management of their own affairs, not for
speculation but for investment considering the probable
safety of their capital as well as the probable income to
be derived." (Civil Code #2261)
Public Trust: Ail participants in the investment process
shall act as custodians of the public trust. Investment
officials shall recognize that the investment portfolio is
subject to public review and evaluation. The overall program
shall be designed and managed with a degree of professionalism
that is worthy of the public trust. In a diversified portfolio
it must be recognized that occasional measured losses are
inevitable, and must be considered within the context of the
overall portfolio's investment return, provided that adequate
diversification has been implemented.
ST054568
IV.
Ve
Delegation of Authority: Government Code #53607.- Refer to
Resolution #2304 dated 8-4-83. Resolution #2412 dated 9-4-86.
Reporting:
A. Monthly: -
The Finance Department shall submit a monthly investment
report to the Governing Body. This report will include
all required elements'of the monthly report as prescribed
by Government Code Section 53646.
Required elements of the monthly report:
a) Type of investment
b) Institution
c) Date of maturity
d) Amount of deposit or cost of the security
e) Current market value of securities with
maturity in excess of 12 months
f) Rate of interest
g) Statement relating the report to the Statement
of Investment Policy
h) Statement that there are sufficient funds to meet
the next 30 days' obligations.
i) Effective January 1, 1991, Accrued Interest as
prescribed by the California Code Section 53646,
if required by the Legislative Body.
Additional information may be included in the monthly report,
but it is not required by the Government Code.
ST054569
Investment Limitations and Maturities: Security purchases and
holdings should be maintained within statutory limits imposed
by the Government Code.
PERMITTED INVESTMENTS/ DEPOSITS
Securities of the U.S. Govt.
Certificates of Deposits.
Negotiable Certificates of Deposit
Bankers Acceptances
Commercial Paper
LAIF
Passbook deposits
Repurchase agreement
Reverse Repurchase agreements
Mutual Funds
Medium Term Notes
County Pooled Funds
Current limits are:
PERCENTAGES
MAXIMUM
MATURITY
Unlimited 5 years*
Unlimited 5 years*
30% 5 years*
40% 270 days
30% 180 days
10MM*** n/a
- n/a
- 1 year
- 1 year**
15% n/a
30% 5 years*
Unlimited n/a
*Maximum term unless expressly authorized by Governing Body and
within the prescribed time frame for said approval.
**Governing Body approval is required. Further, it is suggested
that the final maturity of the underlying investment security
be less than or equal to the maturity of the reverse repurchase
agreement.
***Limit set by L.A.I.F. Governing Board, not Government Code.
ST054570
VII.
VIII.
IX.
Banks and Securities Dealers: In selecting Financial institutions
for the deposit or investment of District funds, the Finance
Department shall consider the credit worthiness of institutions.
The Finance Department shall continue to monitor financial
institutions' credit characteristics and financial history
throughout the period in which agency funds are deposited or
invested.
Risk Tolerance: The District recognizes that investment risks
can result from issuer defaults, market price changes or various
technical complications leading to temporary illiquidity.
Portfolio 'diversification is employed as a way to control risk.
Investment Managers are expected to display prudence in the
selection of securities, as a way to minimize default risk. No
individual investment transaction shall be undertaken which
jeopardizes the total capital position of the overall portfolio.
The Finance Department shall periodically establish guidelines
and strategies to control risks of default, market price changes
and illiquidity.
Statement of Investment Policy: Government Code 53646 - The
Statement of Investment Policy shall be reviewed and submitted
annually to the Governing Body.
ST054571