08-05-99SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert Baer General
James Jones, President
Richard Assistant
BOARD MEMBERS Christopher H. Strohm, Vice President
Pembroke Gochnauer, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
AUGUST 5, 1999
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session August 5,
1999, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California.
BOARD OF DIRECTORS:
President Jones, Directors Wallace, Gochnauer,
Mosbacher. Director Strohm was absent.
ROLL CALL
STAFF:
Baer, Solbrig, Sharp, McFarlane, Noble, Garcia, Cocking,
Hussmann, Schrempp, Ellis, Johnson, Attorney Kvistad.
GUESTS:
Judy Brown/City Council Liaison, Wayne Nader/Vice
President, Government Banking, U. S. Bank; Danny Lukins/
Lukins Brothers Water Company, Mark and Linda Witters/
Meyers Chevron and Foodmart, N. Paul Vadnais, Joyce
Blackstone, Roy Hampson.
Judy Brown reported on the Senate debate that was tele-
vised on C-Span re: an amendment to the Agriculture
bill, calling for the phaseout of MTBE with an eventual
ban. Brown provided the Board with a taped copy, plus
a copy of the Email she sent to Senator Boxer.
COMMENTS FROM THE AUDIENCE
ST034545
REGULAR BOARD MEETING MINUTES -AUGUST 5, 1999 PAGE -2
Mark and Linda Witters: expressed their views related to
the MTBE lawsuit. Due to ongoing litigation; Attorney
Kvistad recommended that they pose their questions
to their legal counsel.
COMMENTS FROM THE AUDIENCE
(continued)
Renee Ellis, who recently filled the interim Administration
Secretary position, was introduced to the Board.
INTRODUCTION
Staff requested that Consent Item b. (Delinquent Assess-
ments: Fallen Leaf Lake Properties) be removed, as the
situation has been satisfactorily resolved.
CORRECTIONS TO THE AGENDA
OR CONSENT CALENDAR
Attorney Kvistad reported there are two addendums to the
Agenda that came to staff's attention after posting of the
Regular Agenda: 1) Steven Lane Waterline Emergency
Repair; and 2) the need to hold a Closed Session to dis-
cuss terms for' property negotiations.
Richard Solbrig reported the first of a series of water leaks
was discovered on Steven Lane on July 29. Over the
course of the next seven days, three more leaks were
found. The section in need of repair is part of an old system
purchased by the District. The line consisted of 2" plastic
piping that wa~s not pressure rated. The line split wide
open, causing 100 feet of pavement to wash away, creating
a safety haza~'d. The City of South Lake Tahoe has request-
ed that repairs be made as soon as possible. Solbrig
estimated the repair to the line, services, and paving to cost
$65,000.
Moved GochnauedSecond Mosbacher/Strohm Absent/
Passed that sufficient evidence has been presented to
determine an emergency situation exists. Steven Lane
Waterline Repair will be added to the Agenda as Action
Item f.
Richard Solbrig requested a Closed Session be added to
the agenda to discuss the terms of a USFS Temporary
Special Use Permit (which is a part of the property nego-
tiations). Due to the timing for the project, this item requires
immediate attention.
Moved MosbachedSecond Wallace/Strohm Absent/Passed
to accept USFS Property Negotiations: Special Use Permit
Terms, as an Addendum to the Agenda as Closed Session
Item d.
ST034546
REGULAR BOARD MEETING MINUTES -AUGUST 5, 1999 PAGE - 3
Moved Mosbacher/Second GochnauedStrohm Absent/
Passed to approve the Consent Calendar, as amended:
a. Authorized implementation of the two-week sewer
and/or water disconnection procedures for delinquent
accounts;
b. (Item Removed);
Christmas Valley and Gardner Mountain Tanks -
Approved Changer Order No. 2 for R.D.C Inc., in the
amount of $1,800;
d. Authorized entering into Natural Gas Purchase
Agreement with IGI Resources, Inc.;
Employee Benefit Plan: Consultant Services Agreement -
Approved renewal of contract with BB&H Benefit
Designs Insurance Services for consulting services for
the District's Employee Benefit Plan in the amount of
$15,000 (annually);
Tata Lane and F Street Waterline - Approved Change
Order No. 1 for White Rock Construction in the amount
of $46,270;
A-Line Phase I1: Revegetation Maintenance -Approved
contract with Kelley Erosion Control in the amount of
$7,980 to provide maintenance and guarantee for 80%
survival of 1,025 plants along Hwy. 50;
ho
Highway 50 / Midway Road Waterline - Approve Change
Order No. 1 for G. B. Construction in the amount of
$3,328;
i. Approved Regular Board Meeting Minutes: June 17, 1999;
j. Approved Regular Board Meeting Minutes: July 1, 1999;
k. Approved Special Board Meeting Minutes: July 7, 1999.
Diane Noble reported Mr. Vadnais would like to connect
to the District's water system and abandon his well.
District inspectors are responsible for siting a new water
lateral at the location which is the most advantageous to
CONSENT CALENDAR
REQUEST TO APPEAR BEFORE
THE BOARD: N. Paul Vadnais, 3677
Forest Ave., APN 27-075-15
ST034547
REGULAR BOARD MEETING MINUTES - AUGUST 5, 1999 PAGE - 4
the District. In this case, the eastern boundary is the most
appropriate place to install the new water service. Using
a map of the property as illustration, Noble stated the
District will absorb the cost to install a new lateral, and
that the siting of the lateral should be at staff's discretion.
If the lateral is placed per staff's recommendation, it will
provide future potential for the neighboring lot to hook up
to the water system. She recommended that the Mr.
Vadnais pay the difference in costs for time and materials
if a special location is selected.
Mr. Vadnais requested that the water service be installed
where it is best for him. Using a map of the property to
illustrate, he outlined the route he envisioned for the
service.
The Operations Committee reviewed this item and recom-
mended that the District place the lateral as Mr. Vadnais
outlined, and Mr. Vadnais would be responsible for time
and materials costs incurred to place it.
Noble stated the existing well is leaking. The water is being
pumped from Mr. Vadnais' basement to the District's sewer
section creating unwanted I&l. It is important a solution is
reached quickly.
Moved Gochnauer/Second Wallace/Jones Voted No/
Strohm Absent/Passed to approve that Mr. Vadnais compen-
sate the District in the amount of $500 for time and materials,
and the District will place the waterline connection lateral in
the location as described by Mr. Vadnais.
President Jones presented Rhonda McFarlane with a
plaque from the Government Finance Officers
Association for an Award of Excellence in Financial
Reporting for Comprehensive Annual Financial Report
for the Fiscal Year Ended June 30, 1998. District staff
members were acknowledged for their contributions to
the report.
REQUEST TO APPEAR BEFORE
THE BOARD: N. Paul Vadnais, 3677
Forest Ave., APN 27-075-15
(continued)
PRESENTATION: Government Finance
Officers Association Award
ITEMS FOR BOARD ACTION
Rhonda McFarlane reported in an effort to improve the
District's internal controls, the auditors recommended
opening a Safekeeping Account to ensure an additional
layer of security for District investments. Wayne Nader,
U.S. Bankcorp, was introduced to the Board.
U. S. BANCORP: INVESTMENT
SAFEKEEPING
ST034548
REGULAR BOARD MEETING MINUTES -AUGUST 5~ 1999
PAGE - 5
The Finance Committee has reviewed this item and
recommends approval.
Moved Wallace/Second Gochnauer/Strohm Absent/
Passed to authorize execution of agreement to open a
Safekeeping Account.
Rhonda McFarlane reported the auditors recommended
that safekeeping customers of U. S. Bankcorp open an
institutional cash account to settle the investment
transactions. (Note: investments will not be purchased
through this account).
The Finance Committee has reviewed this item and
recommends approval
Moved Wallace/Second Strohm/Strohm Absent/Passed
to authorize execution of Institutional Cash Account
Agreement with U. S. Bancorp Investments, Inc.
Rhonda McFarlane reported this account will be used
to make conservative investments.
The Finance Committee has reviewed this item and
recommends approval.
Moved Gochnauer/Second Mosbacher/Strohm Absent/
Passed to: A) Authorize opening account with Gilford
Securities; and B) Authorize execution of Delivery vs.
Payment Agreement.
Richard Solbrig reported that part of the project will consist
of installing 1,500 feet of 30 inch diameter steel pipe by
means of directional drilling under Trout Creek from the
WVVTP to the intersection of Barbara and Martin Avenue.
Staff is requiring the directional drilling contractors who
are interested in bidding the project to submit their qualifi-
cations and experience for review and approval prior to
bidding the project. Representatives from two engineering
firms, plus staff, will review qualifications. Staff feels that by
requiring the directional drilling contractors to be pre-
qualified, project success will be more insured.
The Operations Committee has reviewed this item and
recommends approval.
U. S. BANCORP: INVESTMENT
SAFEKEEPING
(continued)
U.S. BANCORP INVESTMENTS,
INC. SETTLEMENT ACCOUNT
BROKER DEALER ACCOUNT WITH
GILFORD SECURITIES
A-LINE: PHASE Ill
ST034549
REGULAR BOARD MEETING MINUTES -AUGUST 5, 1999 PAGE -6
Moved Wallace/Second GochnauedStrohm Absent/
Passed to approve payment in the amount of $885,724.48.
(This item was added to the Agenda by a unanimous
vote of Board members present.) In addition to the
comments made at the beginning of the meeting, Richard
Solbrig also stated that White Rock Construction has indi-
cated they can be on site by next week and will install valve
clusters, and will run 6 inch PCV waterline off the shoulder
of the road to minimize paving. The bid received from
White Rock totals $55,000. Peterson Construction will
perform the paving portion of the project, in an estimated
amount of $8,000. A budgeted waterline project will be
deferred and the money designated for that project will be
transferred to avoid using the contingency fund.
Attorney Kvistad orally presented Resolution No. 2699-99.
Solbrig confirmed the findings and determinations.
Moved Wallace/Second Gochnauer/Strohm Absent/Passed
to: A) Determine an emergency exists pursuant to Section
1102 of the Public Contracts Code; B) Determine substan-
tial evidence has been presented to authorize an exception
be made to Section 22050 of the Public Contracts Code
that this emergency will not permit a delay resulting from a
competitive solicitation of bids and that this action is neces-
sary to respond to the emergency; and C) Adopt Resolution
No. 2699-99 delegating authority to General Manager to
order any action necessary to respond to this emergency,
and determining this project is exempt from CEQA.
3:45 P.M.
4:00 P.M.
Finance Committee: The committee met July 15.
Minutes of the meeting are available upon request.
Water and Wastewater Operations Committee: The
committee met August 2. Director Gochnauer reviewed
the construction progress for several engineering projects.
Planning/Ordinance Committee: The committee met
July 30 to continue work on the Ordinance Codification
Project. The administration section of the code will
be distributed for review and comments soon.
PAYMENT OF CLAIMS
STEVEN LANE WATERLINE
REPAIR EMERGENCY
MEETING BREAK
MEETING RESUMED
BOARD MEMBER STANDING
COMMITTEE REPORTS
ST034550
REGULAR BOARD MEETING MINUTES -AUGUST 5, 1999 PAGE -7
County Water Agency/EDWPA/LAFCO Committee: The
purveyors met with Supervisors Solaro and Humphries
on July 20 to discuss restructuring of the County Water
Agency Board.
Legislative Funding Ad Hoc Committee: Representatives
in Washington D. C. reported the District's funding
request for the export pipeline replacement project is
included in the House version of line items ($2 million
is listed). They are confident the full amount of $3.2 million
will be included by the Senate. District representatives will
travel to Washington D. C. in September to assist with the
request for funding.
Lahontan/SWRCB Communications Ad Hoc Committee:
District representatives are traveling to Sacramento to
meet with various legislators. AB 3030 (Groundwater
Management Plan) funding will be one topic of discussion.
Director Mosbacher reported on her meeting with Ken
Bush, who is running for a seat on the El Dorado County
Board of Supervisors. A tour of the treatment plant and
water system were included as part of the meeting.
Director Jones reported the EPA has published the MTBE
Blue Ribbon Panel report, which recommends phasing
out the use of MTBE.
Director Wallace reported recreation providers have
identified two acres of District property they would like to
consider using as a soccer field.
Director Gochnauer commented on the need for a Board
workshop covering the future of the District's water system.
Richard Solbrig reported that a Purchase Order was
issued for Jim Haen to provide safety measures at the
plant's cinder ash operation location.
Richard Solbrig reported on the status of the remaining
emergency project:
Gardner Mountain Replacement Well Emergency of
9/17/98 - The drilling contract was awarded to contractor
C. B. Ebright, in the amount of $301,000. The drilling
subcontractor will be Zimm Industries. Staff has reviewed
BOARD MEMBER STANDING
COMMITTEE REPORTS
(continued)
BOARD MEMBER AD HOC
COMMITTEE REPORTS
BOARD MEMBER REPORTS
STAFF REPORTS
STATUS OF EMERGENCY PROJECT
ST034551
REGULAR BOARD MEETING MINUTES - AUGUST 5, 1999 PAGE - 8
all insurance documents and found them to be in order.
A Notice to Proceed can be issued pending final negotia-
tions with the USFS. Western Botanical with perform the
revegetation design work, in the amount of $3,000.
Chief Financial Officer: Rhonda McFarlane reported
that auditors from Perry-Smith will be on site the week
of August 16.
Manager of Wastewater Operations: Ross Johnson
reported on the amounts owed to the District for MTBE
remediation at the Tahoe Tom's site.
District General Counsel: Attorney Kvistad reported
on two items:
1 ) He is working with Alpine County's legal counsel
to review and consolidate existing agreements.
2) He reported on the dinner Hatch & Parent hosted
for Governor Davis.
5:10 P.M.
6:00 P.M.
STATUS OF EMERGENCY PROJECT
(continued)
STAFF REPORTS
ADJOURNMENT TO CLOSED
SESSION
RECONVENE TO REGULAR
SESSION
ACTION / REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION
This item was not discussed.
No Board action.
This item was not discussed.
No Board action.
Legal counsel and staff updated the Board and
received direction regarding this item.
No Board action.
Pursuant to Section 54956.9(a) of
California Government Code/Con-
ferencewith Legal Counsel Existing
Litigation: Schwake v. STPUD,
Federal Case No. CV-N-93-851-DWH
Pursuant to Section 54956.9(c) 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
ST034552
REGULAR BOARD MEETING MINUTES -AUGUST 5, 1999 PAGE -9
(This item was added as an Addendum to the Agenda
by a unanimous vote of the Board members present.)
Staff received direction regarding this item.
No Board action.
6:00 P.M.
Pursuant to Section 54956.8 of
California Government Code/Con-
ference Regarding Real Property
Negotiations - Negotiating Parties:
District Staff, United States Forest
Service; Under Negotiation: Property
Terms; Property Identification:
APN 19-081-09
ADJOURNMENT
~ R. Jones, B~ President
~thSTahoe Public Utility District
ATTEST: %~/~/-~/_~v/-' ,,-~-_ ,~_J ~
Katl~y Sharp~_'ier~ oi tl~- BC'ard
South Tahoe Public Utility District
ST034553
DATE:
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.
ST034554