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08-07-97SOUTH TAHOE PUBLIC UTILITY DISTRICT Basic Services for a Complex World Christopher H. Strohm, President BOARD MEMBERS James Jones, Vice President Robert Mason, Director Mary Lou Mosbacher Duane Wallace, Director !:!?.~.~.~.~.~ ....................................................................................................................................................................................................................................................................................................................... :!:!:!~!~:,;:,;:,i:,i::!:!:!:!: ................. ::::::::::::::::::::: ....................................... t2;2; ................................... :~':.':.',i ............................ ~!:!~;~:~iiii~;~;!:!: ...... REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT AUGUST 7, 1997 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session August 7, 1997, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California. BOARD OF DIRECTORS: President Strohm, Directors Wallace, Mason and Mosbacher. Director Jones arrived late. ~ALL STAFF: Baer, Solbrig, Schroeder, Noble, McFarlane, Gwinn, Brown, M. Alsbury, Garcia, Regan, Thiel, Hydrick, and Attorney Neese. GUESTS' Judy Brown/City Council Liaison; Terry Jamin/CSLT; John Hargrove/e-three; William Branch, Roger Grim, Jack McGinley, Wes Wiens, and Rick Madrid/Sierra Pacific Power Mr. Hargrove, e-three (a Sierra Pacific Power subsidiary), gave an overhead presentation regarding the electric power deregulation in California and how deregulation PRESENTATION: ENERGY DEREGULATION REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE - 2 could potentially impact the District energy services and costs. A question and answer period followed where questions were clarified, with emphasis on how Sierra Pacific can assist the District, depending on the level of District involvement. President Strohm presented Chief Financial Officer Rhonda McFarlane with the Certificate of Achieve- ment for Excellence in Financial Reporting awarded by the Government Finance Officers of the United States and Canada for the Comprehensive Financial Report compiled by the District. Staff requested Consent Item 5 be removed, as the situation has been satisfactorily resolved. Consent Item 4 was brought forward for discussion prior to Board action. Action Item 5 was removed and will be considered on a future agenda. Moved Mason/Second Strohm/Jones Absent/Passed to approve the Consent Calendar as amended: 1) Loader Acquisition: A) Authorized rejection of lowest bid due to significant deviation from specifications; B) Authorized waiver of three minor deviations to the bid specifications; and C) Authorized lease/purchase for a new case loader from GSC Western Power and Equipment in the amount of $104,539.22; 2) Authorized staff to purchase computers from GE Capital utilizing the California Multiple Award Schedule in the amount of $20,566; 3) Authorized implementation of the two-week discon- nection procedures for delinquent sewer and/or water accounts; 6) Approved Regular Board Meeting Minutes of June 19, 1997; 7) Approved Regular Board Meeting Minutes of July 3, 1997 PRESENTATION: ENERGY DEREGULATION (Continued) PRESENTATION: FINANCIAL REPORTING ACHIEVEMENT FOR 1996 COMPREHENSIVE ANNUAL FINANCIAL REPORT CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR CONSENT CALENDAR ST057225 REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE CONSENT ITEMS BROUGHT FORWARD FOR ACTION / DISCUSSION Director Wallace expressed concern with the present billing structure and recommended the Ordinance Com- mittee review the issue of additional outdoor seating capacity for summer months and its effect on the sewer unit counts which determines the billing structure. Directors Wallace and Mosbacher suggested amending the Ordinance to make a provision for the accommoda- tion of a different pricing structure for expanded outdoor seating capacity during these months, instead of charging for an expanded seating capacity rate for the entire year. Director Wallace requested this Ordinance be reviewed by the Ordinance Committee sometime in December or Janu- ary, before the next summer season. Diane Noble clarified that the additional seating count for this particular agenda item was for seating in excess of the permanent indoor seating capacity. Moved Wallace/Second Mosbacher/Jones Absent/Passed to authorize two-week disconnection procedure for the property located at 1041 Fremont Avenue, APN 27-362- 10. SEWER DISCONNECTION: UNREPORTED SEWER CAPACITY (Consent Item No. 4) ITEMS FOR BOARD ACTION Ken Schroeder reported on the potential problem with purchasing the vehicle lift from Omer, the lift mainten- ance manufacturer, who lost their ETL certification on a technicality. The certification should be reinstated within 30 days. Staff requested that if the certification is not received within the 30-day period that the Board author- ize staff to purchase the lift from GCS Western Power and Equipment (which is on the Federal General Services Administration contract), and is the second lowest price. Schroeder stated that the lifts are nearly identical. The Operations Committee has reviewed this item and recom- mended approval. VEHICLE LIFT ACQUISITION ST057226 REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE Moved Mason/Second Strohm/Jones Absent/Passed that A) Authorized purchase of an Omer Parallelogram lift system from Municipal Maintenance Equipment (MME) in the amount of $46,233.72, dependent upon Omer's ETL listing reinstatement within 30 days; B) Authorized staff to negotiate with MME for installation of the vehicle lift in an amount not to exceed $12,868, otherwise instal- lation will be performed by District staff; and C) Author- ized purchase of the lift from GCS Western Power and Equipment in the amount of $52,938.60 if Omer cannot fulfill the ETL certification reinstatement requirement with- in the 30 day period required. VEHICLE LIFT ACQUISITION (Continued) Richard Solbrig presented this item. Only one bid was received at the August 7 bid opening. FLAGPOLE BOOSTER: CENTRIFUGAL PUMPS Moved Wallace/Second Mason/Jones Absent/Passed to award purchase to the lowest responsive, responsible bidder, GPM Corporation, in the amount of $13,967.66. Richard Solbrig presented this item. Two bids were received for this contract at the bid opening on August 7. One bid was received from Energy Systems, the other from Nevada Energy Systems. FLAGPOLE BOOSTER: DIESEL GENERATOR Moved Mason/Second Wallace/Jones Absent/Passed to award contract to the lowest responsive, responsible bidder, Nevada Energy Systems, in the amount of $24,675.01. Rhonda McFarlane reviewed the three-phase history of the project. She then reported that a July 25 meet- ing was held in South Lake Tahoe with representatives from the District, Office of Emergency Services, FEMA, TRPA and Lahontan in an attempt to resolve this issue. She relayed that if FEMA would accept the standards issue, the District would not be required to go through the NEPA review process. FEMA has indicated that there would be no funding at all for the project because the NEPA review process has not been followed. Con- sultants have been retained to assist the District in securing the $1.2 million needed to fund this project. Additionally, Holland and Knight has been teamed up for congressional assistance. FEMA FUNDING FOR THE PONDEROSA PUMP STATION $T057227 REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE A lengthy question and answer period ensued where questions and concerns were clarified. McFarlane then outlined the proposed action plan: 1) Obtain Board authorization to go forward with con- sulting team of KPMG Peat Marwick and Jim Stone, along with Holland and Knight; 2) Prepare a congres- sional briefing and an official appeal letter; 3) Prepare a letter of intent to proceed with the project to be mailed to FEMA and OES; 4) Schedule meeting with Congressional Representative(s), OES, FEMA, Lahontan and TRPA prior to September 8; 5) Prepare an engineer- ing standard on procedure for river crossings for Board adoption; 6) Prepare a letter, in conjunction with TRPA and Lahontan, expressing that these two agencies dictate that the District to go forward with the construction of the project in an effort to avoid a spill; 7) Prepare a Resolution, affirming that Lahontan would not allow the District to go back under the river, for adoption by Lahontan at their September 4 and 5 Board Meeting in South Lake Tahoe, and prepare a comparable letter to be signed by TRPA. Moved Mason/Second Wallace/Jones Absent/Passed to approve hiring the consulting team of KPMG Peat Marwick, Jim Stone, and Holland and Knight to assist with securing federal funds in an amount not to exceed $35,000. FEMA FUNDING FOR THE PONDEROSA PUMP STATION (Continued) President Strohm appointed Directors Wallace and Strohm to serve as the FEMA Ad Hoc Committee to monitor FEMA progress. Moved Strohm/Second Wallace/Jones Absent/Passed to approve payment in the amount of 9461,1 55.04. County Water Agency/EDWPA Committee: Texas Hill tax and budget data has been received from El Dorado County for review. A meeting will be held on August 1 9 with regards to the t~50,000 being pursued as part of the cost-sharing funding request. PAYMENT OF CLAIMS BOARD MEMBER STANDING COMMITTEE REPORTS ST057228 REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE - 6 Legislative Funding Committee: Director Wallace stated that nothing significant has occurred since the Presi- idential Summit here in Lake Tahoe. The 97 million in funding earmarked for the Export Line Replacement Pro- ject still has to pass the Senate Appropriations Commit- tee. Director Wallace complimented all Board members and staff who have worked so diligently on behalf of the export pipeline replacement funding effort. Director Wallace mentioned that both Senator Boxer and Senator Doolittle greatly appreciated the ad published in the Tahoe Tribune thanking them for the their efforts on behalf of the District. BOARD MEMBER AD HOC COMMITTEE REPORTS Director Mosbacher requested and received clarification BOARD MEMBER REPORTS on several items: 1) Presidential forum packet author (Presidential Forum Steering Committee); 2) Identify of who installed the sewerline where the underground gar- age is being built adjacent to Osgood and Ski Run, as part of Redevelopment Project mentioned in the Operations Committee minutes of August 4 (Pierini Corporation); 3) Identity of the Lahontan and TRPA staff members that were supportive of the District at the FEMA meeting two weeks ago (Scott Ferguson and Mike Solt); 4) Status of the Self-Funded Medical Insurance Program (audits forth- coming); and 5) If staff has responded to the letter written by Neva Roberts regarding a demonstration here at the District of usage of treated wastewater for irrigation pur- poses, before a rate increase is considered. The letter was read into the record (letter on file at the District office) and discussed. The Board directed staff to draft a response. Director Mason asked for and received clarification on two items: 1) The status of efforts being made to see what can be done, with the assistance of legislators, to change word- lng in the Porter-Cologne Act with regards to clarifying the use of the words sewage vs. effluent. He stated that the original intent of the act was to get sewage out of the basin, but now the District is being fined for effluent; 2) The time of the CAFR photo shoot at Regan Beach before the August 21 Board meeting. President Strohm reported that August 8 is the last day for declaring candidacy to run for the Board seats that are up for re-election. David Kelly and Pembroke Gochnauer have filed for Director Mason's seat. Florence Donovan has filed for the seat being held by Director Jones. Director Strohm is running unopposed at this time. ST057229 REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE Manager Baer reported on six items: 1) August 8 is the deadline for applications for the DIO position. Manager Baer, Nancy Hussman and Julie Regan will review the applications. 2) The Sacramento Bee is doing a story on the export pipeline. The article will probably be in the paper on August 8 or 9. 3) He attended a SWRCB workshop in Sacramento on August 6 regarding amendments to "minor violations" definitions in conjunction with the Water Quality En- forcement Policy. Another workshop will be held. Manager Baer will continue to monitor the issue. 4) He received a copy of the Quincy Library Accord Agreement pertaining to forest health and clean water. It does not include the Tahoe Forest or Placer or El Dora- do Counties. 5) $7 million in federal funding has been earmarked for replacement of the export pipeline. Staff proposes to do $6 to $7 million dollars in construction next year. Chris Rissetto will be at the District on August 20 and 21 to advise how to bring the funding together. Bartle Wells will assist with how this funding may affect the financial plan. The next Board agenda will have an item requesting an amendment to the Carollo Engineers con- tract for surveying and soils testing on Highway 89. 6) He attended an El Dorado County Board of Supervi- sors meeting on August 4 and approached them aboUt sharing in the expense of paving Grass Lake Road, as well as proceeding with the job earlier than originally scheduled. GENERAL MANAGER/STAFF REPORTS Richard Solbrig reported on the status of the remaining emergency project: STATUS OF EMERGENCY PROJECTS Millich Ditch/Snowshoe Thompson Ditch NO. 1 Emergen- cy Project of March 20. 1 997 - Hal Bird spoke with the ranchers who concurred with the agreement to take care of the lawsuit over Woodford's Inn. Don Bently has re- considered and wishes to participate in the Snowshoe Thompson project with the District. Millich Ditch must be fixed before Snowshoe Thompson Ditch can be rebuilt because the irrigation water is currently being transferred by Clarence Burr through a temporarily repaired Snowshoe ST057230 REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE - 8 Thompson. Millich is the control ditch for rain water and snow melt running off the hillside. A meeting has been scheduled on August 15 for the purpose of developing an agreement between the District and Bently. If this agreement can be worked out, then the project can go out to bid with the larger, more extensive pipeline project. Attorney Neese informed the Board that the District will need to acquire permanent and temporary construction easements from the underlying property owners in order to put the pipeline through. Rhonda McFarlane stated that FEMA would consider the pipeline an improved project and would have to give the District permission to proceed with this project which would be subject to the NEPA review process prior to any construction work commencing. Chief Financial Officer: Rhonda McFarlane reported that Perry-Smith and Co. will arrive at the District on August 11 to perform the annual audit. Miller, Kaplan, Arase and Co., the firm hired to perform an audit of the Self- Funded Medical Insurance Program, will also be on site. Attorney Neese reported on two items: 1) A recent Attorney General's opinion stated that water based consumption fees are not subject to Prop- acetin 21 8. 2) The proposed agreement put forth by County con- cering indemnity, Proposition 218 and administrative fees for collection of taxes has been received. The El Dorado County Auditor's Office stated that they agreed with 99% of the District's position and the last unre- solved issue will be addressed soon. Customer Service Manager: Diane Noble made a report on several small claims actions: 1) Judgement was made in favor of the District regarding the small claims suit filed by Mr. Desai, Cedarwood Lodge, in the amount of $938. 2) Steve Clark, Acting Underground Repair Sewer Super- STATUS OF EMERGENCY PROJECTS (Continued) GENERAL MANAGER/STAFF REPORTS ST05'I231 REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE visor, and Noble will represent the District in a small claims action brought against the District by Phillip Givant on August 8, 1997. 3) The Tahoe Chalet Inn claim is still pending. The claim has been assigned to an arbitrator. 4) Settlement efforts are being made by CSRMA to settle the Tam O'Shanter issue. Noble will keep the Board informed of the progress of these last two claims. 4:50 P.M. 4:55 P.M. 5:50 P.M. GENERAL MANAGER/STAFF REPORTS (Continued) MEETING BREAK MEETING RESUMED AND ADJOURNED TO CLOSED SESSION RECONVENE TO REGULAR SESSION ACTION / REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION By unanimous vote of the Board members present a Settlement Agreement with Mr. Gary Shidaker was approved in order to avoid litigation. The dispute con- cerned use of the District easement across Mr. Shid- aker's property in connection with the construction activities of the Al Tahoe Pump Station. Mr. Shidaker acknowledged the District's easement across his prop- erty and the District agreed to fog seal Link Road, repair damaged portions of the fence on Mr. Shidaker's proper- ty and place some slow signs to reduce speed on the roadway. A Memorandum of Agreement summarizing basic terms of the Settlement Agreement was exe- cuted by both parties and has been submitted to the County Recorder's Office for recordation. The Board advised Legal Counsel regarding this item. NO Board Action. Pursuant to Section 54956.9(b) of California Government Code/ Conference with Legal Counsel - Significant Exposure to Litigation (One Case) Pursuant to Section 54956.9(b) of California Government Code/ Conference with Legal Counsel Anticipated Litigation (One Case) ST057232 REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE The Board advised Legal Counsel and staff regarding this item. (Director Jones arrived at this point in the meeting.) NO Board Action. 5:55 P.M. Pursuant to Section 54956.9(b) of California Government Code/ Anticipated Litigation (One Case) ADJOURNMENT Christopher H. Strohm, President of Board South Tahoe Public Utility District Kathy SI~, C~erk 'of B~'ard South Tal~oe Public Utility District ST057233 JULY 23, 1997 HON. BOARDMEMBERS, JOINTLY AND SEVERALLY SOUTH TAHOE PUBLIC UTILITY DISTRICT 1275 MEADOW CREST DRIVE SOUTH LAKE TAHOE, CA 96150 RE: PORTER COLOGNE ACT/RAISES IN WATER RATE Dear Boardmembers, Before another rate increase is considered for water I respectfully request that the Board pursue the provision in the Porter Cologne Water Quality Act that provides for a demonstration project of treated waste water within the District in the Lake Tahoe basin. It seems prudent, responsible, and economically viable that a limited project whereby Bijou Community Park, or the college, or even the S.T.P.U.D. grounds could be successfully irrigated (I.E: no harmful particulates entering the lake as a result) without detriment to the environment. Indeed, the pressures at the plant would even be marginally reduced. Has the provision for such a project been rescinded? When? Why? By whom? Your consideration would be appreciated. Neva Roberts P.O. BOX 8306 SOUTH LAKE TAHOE, CA 96158 ST057234 SOUTH TAHOE PUBLIC UTILITY DISTRICT Gtneral Manager ROBERT G. B AER "Basic Service,, for a Complex World" September 05, SEWER · 19~0 · WATER n PUBLIC AGENCY 1275 Meadow Crest Drive · South Lake Tahoe, California 96150 Phone (916) 544-6474 · Fax (916) 541-0614 1997 Directors JAMES R. JONES ROBERT MASON MARY LOU MOSBACHER CHRIS STROHM DUANE WALLACE Neva Roberts P.O. Box 8306 South Lake Tahoe CA 96158 RE: PORTER COLOGNE ACT/RAISES IN WATER RATE Dear Ms. Neva Roberts: Several years ago the board considered and informally rejected an in-basin reuse project at the wastewater treatment plant. I estimated the project would increase effluent disposal costs due to a number of factors including: additional ground water and soil monitoring requirements, increased operation and maintenance cost, and increased disinfection costs. In-basin reuse would not be cost effective unless significant volumes of effluent could be disposed of and no additional treatment was required. District employees work hard to operate and maintain an efficient and reliable utility. A pilot reuse project would be fascinating to build and operate, but would not be practical under the provisions of the Porter Cologne act. I would be happy to discuss reuse with you in further detail. I can be reached at 544-6474 ext. 241. Sincerely, Manager of Wastewater Operations cc: Board ST057235 REGULAR BOARD OF DIRECTORS MEETING GUEST SIGN-IN SHEET IN ACCORDANCE WITH THE BROWN ACT: COMPLETION OF THIS INFORMATION IS VOLUNTARY, NOT MANDATORY, AND IS NOT A PRECONDITION FOR ATTENDANCE, ;NAME I ADDRESS I PHONE # I ST057236