06-15-00SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert Baer~ General Manager Richard Solbrig, Assistant Manager
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Christopher H. Strohm, President BOARD MEMBERS Pembroke Gochnauer, Vice President
James Jones Director Ma~ Lou Mosbacher, Director Duane Wallace, Director
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REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
JUNE 15, 2000
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session, June 15,
2000, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California.
BOARD OF DIRECTORS:
President Strohm, Directors Wallace, Jones, Gochnauer,
Mosbacher.
ROLL CALL
STAFF:
Baer, Solbrig, Sharp, McFarlane, Brown, Hoggatt, Rieger,
Noble, Johnson, Thiel, Attorney Kvistad.
GUESTS:
Bill Price NVestern Power Investments, Inc., Max Jones/
Energy Source, David Kelly.
Moved Mosbacher/Second Strohm/Passed Unanimously
to approve the Consent Calendar as submitted:
a. Authorized implementation of the two-week water dis-
connection procedures on the property located at 3284
Lake Tahoe Blvd., APN 27-170-021, for failure to per-
form annual backflow assembly(les) test;
CONSENT CALENDAR
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REGULAR BOARD MEETING MINUTES - JUNE 15, 2000 PAGE - 2
2000-2001 Chlorine Supplies - Awarded contract to
the lowest responsive, responsible bidder, Sierra
Chemical Company, in the amount of $48,868.52*
(*Actual quantities used and grand total may vary
accordingly, but unit prices are firm.);
Authorized contract with Ewe Salvage Pool & Auto
Auction, Inc., to sell surplus vehicles and equipment
at public auction;
Lake Tahoe Clean Cities Coalition - Authorized
execution of memorandum of understanding effectively
joining the coalition;
Sierra Pacific Power Service Agreement for Gardner
Mountain Well - Authorized execution of agreement with
Sierra Pacific Power Company;
A-Line Phase 2 Revegetation - Approved proposal from
Kelley Erosion Control in the amount of $8,460;
go
Park Avenue Project: Phase 1 -Approved Change Order
No. 1 to the City of South Lake Tahoe for White Rock
Construction in the amount of $7,482.64;
h. Approved Special Board Meeting Minutes:
May 18, 2000;
i. Approved Regular Board Meeting Minutes:
May 18, 20O0;
j. Approved Special Board Meeting Minutes:
May 25, 2000;
k. Approved Regular Board Meeting Minutes:
June 1,2000.
President Strohm presented Rhonda McFarlane with
a plaque from the Government Finance Officers Associa-
tion for an award of excellence in financial reporting for
Comprehensive Annual Financial Report (CAFR) for fiscal
year ended June 30, 1999. District staff members were
acknowledged for their contributions to the report.
CONSENT CALENDAR
(continued)
PRESENTATION: Government
Finance Officers Association Award
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REGULAR BOARD MEETING MINUTES - JUNE 15, 2000 PAGE - 3
Ross Johnson reported the District is currently evaluating
cost saving options associated with the deregulation of
electricity. The District's previous provider, ACWA's
New Engergy Ventures, can no longer supply power.
Bill Price and Max Jones, Western Power Investments,
Inc., gave an oral and visual presentation covering the
operations of their geothermal binary-cycle power plant.
They reviewed their proposal to sell District "green" power
from their Steamboat Geothermal Plant in Reno for a
flat rate for three years with no escalation. They requested
the District submit a letter of intent, required by the Depart-
merit of Energy, which will indicate the District's interest
and allow them to evaluate the District's power needs.
Board members objected to committing the District to pur-
chase power from their company, and directed staff and
legal counsel to develop a letter of interest that does not,
in any way, obligate the District. Any final arrangements
related to the purchase of power will be subject to Board
approval. Staff was also directed to research several
issues, such as comparative costs, and transmission costs.
No Board action.
PRESENTATION: Proposal for
Electric Power (Western Power
Investments, Inc.)
ITEMS FOR BOARD ACTION
Richard Solbrig reported six bids were received for the
project at the June 13, 2000 bid opening. C. B. Ebright
was the apparent Iow bidder, in the amount of $494,494.
On June 15, the District received a letter from C. B.
Ebright, with supporting documentation, requesting that
they be allowed to withdraw their bid and bid bond. The
reason given was that they had inadvertently omitted the
price of the pipe from their bid, which resulted in a $45,068
mistake. After reviewing the information provided by C. B.
Ebright, staff recommends allowing them to withdraw their
bid without penalty.
The second lowest bidder, White Rock Construction, bid
totaled $644,700. The only discrepancy in their bid was that
they failed to indicate the designation for their contractor's
license, ie. Class "A". Their license has been verified to be
in good standing. Staff recommends waiving the minor bid
irregularity.
GARDNER MOUNTAIN WATER-
LINE REPLACEMENT: PHASE
1 AND2
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REGULAR BOARD MEETING MINUTES -JUNE t5, 2000
PAGE - 4
Legal counsel has reviewed these items and concurs with
staff's recommendations.
Moved Jones/Second Wallace/Passed Unanimously to
accept C.B. Ebright's letter requesting they be released
from the bid, and to waive the discrepancy (described
above) and award contract to the lowest responsive, res-
ponsible bidder, White Rock Construction, in the amount
of $644,700.
John Thiel reported three bids were received for the
project at the June 14, 2000 bid opening. Thiel also
reviewed a minor discrepancy related to the Iow bid -
the contractor submitted a Nevada license number rather
than their California number. (The contractor is licensed to
work in several states and thought Lake Tahoe was in
Nevada). Their California license number was supplied
and has been verified to be in good standing. He recom-
mended this minor discrepancy be waived.
GARDNER MOUNTAIN WATER-
LINE REPLACEMENT: PHASE
1 AND2
(continued)
RAILROAD TANK REPLACEMENT
Moved Jones/Second Strohm/Passed Unanimously to
award contract to the lowest responsive, responsible
bidder, Morse Tank Construction, in the amount of
$147,128.
Bob Baer reported that four Alpine County ranchers have
expressed interest in using the District's recycled water in
Nevada and are pursuing a wastewater discharge permit
to allow application of water under the current District
contract on their lands (approximately 950 acres). Nevada's
permit requirements are stringent and will require that an
engineering study be conducted on their properties in
Nevada. The study for all four ranches combined could
cost $62,000.
RECYCLED WATER DISCHARGE
PERMIT FOR NEVADA
The District had previously contracted with Harding Lawson
to prepare a land application study of the ranch lands
suitable for recycled water use in Alpine County. Informa-
tion developed by the study could be used for Nevada irri-
gation plans. Waiting for completion of the study could
reduce the cost of the proposed price of $62,000 for develop-
merit of the permits. The ranchers have proposed contributing
towards the cost of the District's study in the amount of
$1,000 each, for a total of $4,000. Baer recommended to
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REGULAR BOARD MEETING MINUTES -JUNE 15~ 2000 PAGE -5
the ranchers that the District and the ranchers (as a group)
split the costs ($31,000 each). The ranchers could
apportion their share of costs, since they are in a better
position to determine their financial resources and the
value of obtaining the right to use recycled water on their
Nevada lands. The study is expected to be completed by
mid-summer. The Board directed staff to pursue cost
sharing as described by Baer above.
No Board action.
Moved Strohm/Second Gochnauer/Passed Unanimously
to approve payment in the amount of $625,996.77.
Rhonda McFarlane pointed out that several property
owners in Al Tahoe area are taking advantage of the
settlement option the District provided to them.
Water and Wastewater Operations Committee: The
committee met June 12. Minutes of the meeting are
available upon request.
Special Litigation Ad Hoc Committee: The committee met
June 15, and will report on the meeting during closed
session.
RECYCLED WATER DISCHARGE
PERMIT FOR NEVADA
(continued)
PAYMENT OF CLAIMS
BOARD MEMBER STANDING
COMMITTEE REPORTS
Federal Legislative Ad Hoc Committee: Baer reported that
various pieces of MTBE legislation are going forward.
SB 2723, proposed as an amendment to the Clean Air Act,
would permit the governor to phase-out MTBE in four years.
Lakeside Park Ad Hoc Committee: Director Gochnauer
reported on the June 2 meeting with two Lakeside Park
board members that was held to establish common
ground.
Director Mosbacher reported on two items:
1) Her attendance at the TCORP meeting;
2) She summarized the topics discussed during a recent
meeting regarding the Sierra-Nevada Framework.
General Manager: Bob Baer reported on three items:
1) John Weidman relayed the history of relations with
Alpine County to staff;
BOARD MEMBER AD HOC
COMMITTEE REPORTS
BOARD MEMBER REPORTS
GENERAL MANAGER / STAFF
REPORTS
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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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REGULAR BOARD MEETING MINUTES - JUNE 15, 2000 PAGE - 6
2) District representatives met with Lahontan staff
re: TMDLs. EPA's progress in adopting the rule has
been slowed down. The earliest Lahontan can act
on TMDL standards is October, 2000. Staff will contact
EPA to learn how the process will work.
3) The El Dorado Irrigation Board of Directors fired
their general manager, Bill Hetland.
Assistant ManagedEn,qineer: Richard Solbrig reported
on the status of several engineering projects, including:
Gardner Mountain equipment package, Flagpole Tank,
temporary equipment for Gardner Mountain Well, and
the 14" waterline that was installed between Pioneer Trail
and Park Ave. (the old 8" line was taken out of service).
District General Counsel: Gary Kvistad reported the draft
Groundwater Management Plan has been completed.
Notices regarding the July 6 public hearing were published.
3:55 P.M.
4:10 P.M.
6:00 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
Legal counsel updated the Board on the status of this case.
No Board action.
Legal counsel updated the Board regarding this item.
No Board action.
There was nothing new to report regarding this item.
No Board action.
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel, Existing Litigation:
STPUD vs. ARCO, et. al, San
Francisco Superior Court Case
No. 999128
Pursuant to Government Code
Section 54956.9(b)/Conference with
Legal Counsel re: Pending Litigation
( one case)
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel, Existing Litigation:
Schwake vs. STPUD, Federal Case
No. CV-N-93-851-DWH
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REGULAR BOARD MEETING MINUTES - JUNE 15, 2000 PAGE - 7
Legal counsel updated the Board regarding this item.
No Board action.
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel, Existing Litigation:
Mountain Cascade Inc., and Valley
Engineers, Inc. vs. STPUD Board of
Directors and STPUD, County of El
Dorado, Superior Court Case No.
SC20000050
Legal counsel updated the Board regarding this item.
No Board action.
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel, Existing Litigation:
South Tahoe Redevelopment Agency
vs. STPUD, El Dorado County
Superior Court, Case No. SC20000090
6:00 P.M.
ADJOURNMENT
Christopher H. Strohm, Board President
South Tahoe Public Utility District
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