12-03-98SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robed Baer Genera Manager Richard Solbrig, Assistant Manager
James Jones, President BOARD MEMBERS Christopher H. Strohm, Vice President
Duane Wallace, Director Mary Lou Mosbacher, Director Pembroke Gochnauer, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
DECEMBER 3, 1998
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session December
3, 1998, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe,
California.
BOARD OF DIRECTORS:
Vice President Strohm, Wallace, Mosbacher, Gochnauer.
President Jones was absent due to District business.
ROLL CALL
STAFF:
Solbrig, Sharp, McFarlane, Noble, Brown, Rondoni,
Schroeder, Taylor, Rieger, Hussmann, Swain, Forsythe,
Attorney Neese.
GUESTS:
Judy Brown/City Council Liaison, Tina Treis/Perry-Smith
& Co., Tom Gould and Angie Sanchez/Economic and
Engineering Services, Inc., Joyce Blackstone.
Staff requested Consent Item No. 6 be removed, as the
situation has been satisfactorily resolved. Consent Item
No. 5 was brought forward for discussion prior to Board
action.
Moved Mosbacher/Second Wallace/Jones Absent/Passed
to approve the Consent Calendar, as amended:
CORRECTIONS TO THE AGENDA OR
CONSENT CALENDAR
CONSENT CALENDAR
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REGULAR BOARD MEETING MINUTES - DECEMBER 3, 1998 PAGE - 2
1) Authorized staff to advertise for bids for a 1 1/~ ton truck
to replace Truck 44;
2) Approved upgrades to District diesel fuel tanks in an
additional amount of $25,000;
3)
Linear Park Water Line - Approved Change Order No. 1
for the City of South Lake Tahoe (G. B. Construction)
in the amount of $2,025;
4)
1999 Vehicle Purchases - Authorized purchase of four
vehicles through the State of California, Department of
General Services cooperative purchasing program;
7)
Christmas Valley and Gardner Mountain Tanks -
Approved Change Order No. 3 for C. B. Ebright in the
amount of $8,748.21;
8) Approved Special Board Meeting Minutes:
November 5, 1998;
9) Approved Regular Board Meeting Minutes:
November 5, 1998.
CONSENT CALENDAR
(continued)
CONSENT ITEMS BROUGHT FORWARD FOR ACTION / DISCUSSION
Linda Brown clarified questions from Director Gochnauer
regarding the use of Nationwide Companies, instead of a
local firm.
Moved Gochnauer/Second Wallace/Jones Absent/
Passed to authorize staff to contract with Nationwide
Companies to auction surplus property at public sale.
SURPLUS VEHICLE AUCTION
(Consent Item No. 5)
This item was resolved by staff and the Operations
Committee prior to the Board meeting.
No Board action.
Rhonda McFadane reviewed the operating results of the
1997/98 fiscal year. She reported it was an outstanding
year, with positive results.
REQUEST TO APPEAR BEFORE
THE BOARD: Carina Evans,
910 Rubicon Trail, APN 31-314-15
PRESENTATION: 1997/98 Fiscal
Year Operatin.q Results
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REGULAR BOARD MEETING MINUTES - DECEMBER 3, 1998 PAGE - 3
Tina Treis discussed the highlights, findings, and recom-
mendations for enhancing internal controls from the
audit. She reported there were no significant audit
adjustments.
Tom Gould presented several types of financial policies
for the Board to consider using as guidelines in the rate
setting process.
The rate design portion of the rate setting process will
be presented during a Regular Board meeting in January
or February, 1999.
3:35 p.m.
4:00 p.m.
PRESENTATION: 1997/98 Fiscal
Year Financial Statement Audit
Results
PRESENTATION: Financial Policies
for Sewer Rate Study - Economic and
En,qineering Services, Inc.
MEETING BREAK
MEETING RESUMED
ITEMS FOR BOARD ACTION
Nancy Hussmann reported on the quotes received from
insurance companies for stop loss coverage. The
Finance Committee reviewed all the renewal options
and funding levels in detail with staff and BB&H.
Director Wallace reported that since the District made the
decision to become self-insured, nearly $400,000 in
savings have been realized (as compared to if an
insurance carrier had provided the same level of service).
Moved Gochnauer/Second Strohm/Jones Absent/Passed
to approve specific and aggregate insurance with Canada
Life Insurance Company for 1999 Plan Year and authorized
staff to execute applicable contracts.
Nancy Hussmann reported on the quotes received for long-
term disability insurance renewal. BB&H Benefit Designs
researched combination short-term disability and long-term
disability programs as a method of reducing premiums. It
was their recommendation to accept the quote received
from Provident Life Insurance Company. After a concern
was expressed by staff, the motion was amended to read
as stated below.
Moved Wallace/Second Strohm/Jones Absent/Passed
to change existing long-term disability plan to a short-term
and long-term disability combination program through
Provident Life Insurance Company and authorize staff
SELF-INSURED HEALTH PLAN:
STOP LOSS CONTRACT
LONG-TERM DISABILITY PLAN
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REGULAR BOARD MEETING MINUTES - DECEMBER 3, 1998 PAGE - 4
to execute applicable contract, contingent upon: 1) there
is no decrease in the level of benefits to the plan partici-
pants; or 2) if there is such a decrease, authorize the
Human Resources Director to approve the short-term
disability plan and long-term disability combination prog-
ram which does not exceed the amount of the renewal
premium through Guardian Life Insurance Company.
Moved Gochnauer/Second Wallace/Jones Absent/Passed
to approve COBRA administration services through ABR
COBRA Serve and authorize staff to execute applicable
contract.
Moved Strohm/Second Wallace/Jones Absent/Passed
to approve payment in the amount of $742,905.15.
Finance Committee: The committee met December 3
regarding self-funded medical insurance, and 1997-98
Financial Statement audit results.
County Water A,qency/EDWPNLAFCO Committee: The
Water Agency is sending a check for $210,000 via
certified mail. The remaining amounts will be sent soon.
Lahontan/SWRCB Communications Ad Hoc Committee:
As a result of the Lahontan performance review, new
legislation will be developed and proposed. Bipartisan
support for this bill will be necessary for this legislation
to succeed.
Director Gochnauer reported on an article in a recent
ACWA newsletter regarding a microbe that may feed
on MTBE.
Director Wallace reported many people have the impres-
sion that there is MTBE in the District's water supply. He
stressed the need to clarify that misconception.
Accountant: Kay Taylor presented this year's budget
schedule.
District Information Officer: Dawn Forsythe reported
on the following items: 1) She provided Lahontan and
Assemblyman Oiler with a proposal that would allow
treated effluent to be used for fire protection. 2) She
testified before the ACWA Legislative Committee re:
LONG-TERM DISABILITY PLAN
(continued)
COBRA ADMINISTRATION
PAYMENT OF CLAIMS
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD MEMBER AD HOC
COMMITTEE REPORTS
BOARD MEMBER REPORTS
STAFF REPORTS
ST007136
REGULAR BOARD MEETING MINUTES - DECEMBER 3, 1998 PAGE - 5
MTBE. They voted unanimously to pursue legislation to
phase out MTBE in the next 12 months. 3) Clark County
(Nevada) is contemplating prohibiting MTBE in Las Vegas.
Richard Solbrig reported on the status of the emergency
projects:
Upper Truckee River Sewer Line and Original A-Line
Crossin,q Emergency of 8~20~98: The construction on
this project has been completed. The final payment
to C. B. Ebright is on the current payment of claims.
Northwest Hydraulic will submit their final bill for the
design and inspection work. Any further work related
to this project will be subject to the competitive bidding
processes contained in the Public Contracts Code.
Arrowhead Replacement Well Emergency of 8/20/98 -
The power company has restored power to the old building.
Tom Haen is in the process of completing the piping inside
the building. The contractor still has to drain the tanks and
haul them away. He has demobilized his equipment. The
emergency contract for this project has been completed.
Any further work related to this project will be subject to the
competitive bidding processes contained in the Public
Contracts Code.
Gardner Mountain Replacement Well Emergency of
9/17/98 - HBA Parsons will submit a scope of work for the
bald eagle study to the USFS for their comments. The
Forest Service's wildlife staff would not provide HBA with
their recommended scope of work.
Chief Financial Officer: Rhonda McFarlane reported that
FEMA will be on-site December 7 to assist staff with the
revisions to the grant application. She also reported on
the amounts of reimbursement requests that are pending.
District General Counsel: Kevin Neese reported on the
following items: 1) The County Water Agency's general
counsel has not reviewed the letter to be sent to the
Attorney General requesting an opinion regarding the use
of ad-valorem taxes. 2) The Alpine County agreement and
amendments have been consolidated into one document
so it will be easier to determine exactly what provisions
remain in effect. 3) If fines or penalties are imposed due
to violation of the Groundwater Management Plan ordi-
nance, the fees may be included in the offending party's
water bill or they could be shut-off.
STAFF REPORTS
(continued)
STATUS OF EMERGENCY PROJECTS
STAFF REPORTS
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REGULAR BOARD MEETING MINUTES - DECEMBER 3, 1998 PAGE
5:30 p.m.
5:45 P.M.
ADJOURNMENT TO CLOSED
SESSION
RECONVENE TO REGULAR
SESSION
ACTION / REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION
No report.
No Board action.
Legal counsel and staff updated the Board and
received direction regarding this item.
No Board action.
Legal counsel and staff updated the Board and
received direction regarding this item.
No Board action.
5:50 P.M.
Pursuant to Section 54956.9(a) of
California Government Code/Con-
ference with Legal Counsel Existing
Litigation: Schwake v. STPUD,
Federal Case No. CV-N-93-851-DWH
Pursuant to Section 54956.9(b) of
California Government Code/
Conference with Legal Counsel
Anticipated Litigation (one case)
Pursuant to Section 54956.9(a) of
California Government Code/Con-
ference with Legal Counsel Existing
Litigation - STPUD v. ARCO, et al,
San Francisco County Superior
Court, Case No. 999128
ADJOURNMENT
Christopher H. Strohm, Board Vice President
South Tahoe Public Utility District
ATTEST ~.Z¢~:~ '-,~-~-¢.
Kathy Shar ,~l~-~k Of the Beard
South Tahoe Public Utility District
ST007135
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
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