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07-24-92 SpecialMINUTES SPECIAL MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT JULY 24, 1992 The Board of Directors of the South Tahoe Public Utility District met in a Special Meeting, July 24, 1992, 8:30 AM, School District Board Room, 1021 A1 Tahoe Boulevard. BOARD MEMBERS: Chairman Pierini, Directors Mason, Wallace, Onysko, Mosbacher ROLL CALL STAFF: Executive Session: Baer, Solbrig, Mamath, Attorney Sare Reqular Session: Baer, Solbrig, Garton, Mamath, Schroeder, Eddy, Gilbert, Twomey,Thiel, Christianson, Hydrick, Attorney Sare GUESTS: Brian Taylor/Tahoe Daily Tribune Chairman Pierini called the meeting to order at 8:40 AM and immediately adjourned to Executive Session pursuant to Government Code Section 54956.9(b) (1) Discussion of significant exposure to litigation/HDR CLAIM ADJOURNMENT TOEXECUTIVE SESSION No Board Action Was Taken. 8:55 AM RETURN TO REGULAR SESSION Attorney Sare requested this portion M.O.U. WITH UNION MEMBERSHIP, of the meeting be transcribed verbatim. RATIFIED BY UNION MEMBERSHIP Chairman Pierini agreed. ON 7/21/92 Attorney Sare stated, "Ladies and Gentlemen: Before you is a union and employee ratified Memorandum of Under- standing for Fiscal Year 1992/93. As you are aware, the former M.O.U. was poorly written and very cumbersome. This new proposal has been completely rewritten, and if adopted by you, can save the District hundreds of Management staff hours that translates into signif- icant dollar savings to the District. This proposal is for one year and ST055913 SPECIAL BOARD MEETING MINUTES - JULY 24 1992 PAGE contains a salary increase of 2.5%; M.O.U. WITH UNION MEMBERSHIP, benefits will be maintained at the same RATIFIED BY UNION MEMBERSHIP level as last year. We have also ON 7/21/92 negotiated a contingency fund that will (continued) cover any increased cost in benefits. If there is a cost savings on the benefits, the savings will be shared with the employees. The proposal has been circulated to the public and was ratified by rank and file on Tuesday of this week (July 21, 1992). There is one change that has been presented that was agreed to by the employee represent- atives and that change is before you and it has to do with overtime or double time pay for holidays. The staff recom- mends the Board authorize the Chairman and the Manager to enter into this M.O.U. Are there any questions?" Director Mason, "So Moved." Director Wallace, "Second." Chairman Pierini, "It's been Moved and Seconded. I call for the question by Board vote. All in favor, say Aye." AYES: Directors Pierini, Onysko, Mason, Mosbacher, Wallace. Chairman Pierini, "Those Opposed? Hearing None, the motion passes--5 to 0." Presented by Assistant Manager Solbrig WATER SUPPLY ECONOMIC STUDY on the Stateline Zone Water Demand by 1997 which he estimated would be 7.07/MGD (4,910/gpm); the present demand being 6.49/MGD (4,510/gpm). He said how to achieve this increase in supply in the most economical way was the ques- tion the study had investigated, based on a worse-case-scenario in relation to radon standards. Staff's review in- cluded capacity of present wells, other potential water supply sources, option project costs (which did not include finance costs), 8 Stateline Zone system supply alternatives (clusters) showing a minimum of 4,910/gpm projected re- quirement for the Stateline Zone and their respective annualized costs. Staff recommended Alternative I (as presented by Solbrig) which used the expanded A1 Tahoe w/Paloma & Highland Woods cluster for a total esimated cost of $8.3 Million. He also used a map showing the ST055914 SPECIAL BOARD MEETING MINUTES - JULY 24, 1992 PAGE - 3 the District's present distribution system and the proposed distribution system. WATER SUPPLY ECONOMIC STUDY (continued) Director Onysko questioned staff about the wells which might have VOC problems. Staff Engineer, John Thiel spoke to the Board about the information he had obtained about present and future radon standards. He also discussed the various technologies District staff was reviewing and the pros and cons of each. He said staff would continue to support the efforts to modify (reduce) the radon rule due to excessive costs and questionable benefits. Director Mosbacher stated the E1 Dorado County Water Agency may be willing to give the District $10,000 to help fight the radon rule. Onysko suggested testing local homes for indoor radon concentrations to show there may not be a significant health benefit to reduce the radon in the water. He felt the District should spend money to find out what the indoor radon concentrations are in town; if they are so high that removing all the radon in the water is not going to have any health benefits to our consumers, then the District had a valid argument. Solbrig summarized the staff recommen- dations. No Board Action. Assistant Manager Solbrig gave a summary of equipment options and their related cost comparisons (which includ- ed installation), based on staff's perception of the present distribution system. He said staff felt 1,000/gpm was what the present distribution system could handle. SELECTION OF PUMPING EQUIPMENT FOR AL TAHOE WELL Staff recommended looking at the 300/hp motor, maximizing it in a preliminary way and hiring an electrical consultant to help staff put together a package to size the motor and invest- igate a VFD and stand-by power. Staff responded to questions from Board members regarding pump noise levels (submersible vs above ground). ST055915 SPECIAL BOARD MEETING MINUTES - JULY 24, 1992 PAGE - 4 Director Onysko was opposed to a sub- mersible pump and suggested using a vertical turbine pump (300/hp motor & smaller size bowls) which included electrical wiring for the larger capacity. He felt his suggestion, in the long run, was the most economical scenario. SELECTION OF PUMPING EQUIPMENT FOR AL TAHOE WELL (continued) Discussion continued re pressure in the lines, variable frequency drives (VFD) and power/service costs. Solbrig sum- marized staff plans to select the pumping equipment. The Board also discussed the use of a 75/bp or 100/hp motor at other locations if purchased now and replaced later by a larger motor at the A1 Tahoe Well site and uncertain- ties related to the use of a VFD. The consensus of the Board was they did not support the use of a VFD at the A1 Tahoe Well site. Moved Mason/Second Mosbacher to use Solution #2/Summary of Equipment Options (100/hp, 1050/gpm, submersible-utilizing existing plant) for the A1 Tahoe re- placement pump. Mason withdrew his motion. Staff supported the use of a VFD and requested additional time to further investigate this alternative. It was the consensus of the Board to have staff do an in-house investigation for the use of a VFD. No Board Action. Rick Hydrick and Richard Solbrig reported on their contact with the Seabees regarding help from them with District test wells. COMPLETION OF TEST WELLS: PALOMA AND HIGHLAND WOODS SITES 11:32 AM ADJOURNMENT ATTEST: LOU PIERINI, CHAIRMAN OF BOARD SOUTH TAHOE PUBLIC UTILITY DISTRICT PAT A. MAMATH~ CLERK OF BOARD SOUTH TAHOE PUBLIC UTILITY DISTRICT ST055916