11-01-01SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert G. Baer, General
Duane Wallace, President
BOARD MEMBER
Richard stant ler
James R. Jones, Vice President
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
NOVEMBER 1, 2001
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session, November
1, 2001, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe,
California.
BOARD OF DIRECTORS:
President Wallace, Directors Schafer, Jones, Strohm,
Mosbacher
ROLL CALL
STAFF.:
Baer, Solbrig, Sharp, McFarlane, T. Rieger, Zaninovich,
D. Johnson, Coyner, Gray, Garcia, Schroeder, M. Alsbury,
Hoggatt, Cocking, Schrempp, Attorney Kvistad
GUESTS,: David Robertson/Robertson & Benevento, Matt
Setty/Kennedy/Jenks, Bob Duchek/Parsons, Herman Zellmer/
Alpine County Supervisor, Leonard TumbeaughlAIpine County
Director of Public Works and Contracts Commission member,
David Kelly, Tyler Rieger, Cathie Becker, Roy Hampson
Consent Item f. was brought forward for discussion prior
to Board action.
CORRECTIONS TO THE AGENDA
OR CONSENT CALENDAR
REGULAR BOARD MEETING MINUTES - NOVEMBER 1, 2001
PAGE - 2
Moved Mosbacher / Second Strohm / Passed Unanimously CONSENT CALENDAR
to approve the Consent Calendar as amended:
a. Authorized implementation of the two-week disconnection
procedures on the property located at 1069 Emerald Bay
Road, APN 23-430-301;
Gardner Mountain Well Equipment and Control Building -
(1) Approved Project Closeout Agreement and Release of
Claims for White Rock Construction; and (2) Authorized
staff to file a Notice of Completion with the El Dorado
County Clerk;
Forest Mountain Tank and Iroquois Tank Rehabilitation -
(1) Approved Project Closeout Agreement and Release of
Claims for Morse Tank Construction; and (2) Authorized
staff to file a Notice of Completion with the El Dorado
County Clerk;
Gardner Mountain Waterline Replacement: Phase 3 -
(1) Approved Project Closeout Agreement and Release of
Claims for White Rock Construction; and (2) Authorized
staff to file a Notice of Completion with the El Dorado
County Clerk;
B-Line Replacement: Phase 2 - Approved Change Order
No. 1 for White Rock Construction in the credited amount
of <$119,352.60>;
f. See Consent Items Brought Forward for Discussion;
STPUD Recycled Water Master Plan: Proposed Property
Acquisition - Approved Task Order No. 29 to Parsons for
preparation of an Initial Study and related environmental
work regarding proposed acquisition of property from
F. Heise Land and Livestock Company, Inc., in the amount
of $7,800.
CONSENT ITEMS BROUGHT FORWARD FOR DISCUSSION I ACTION
Director Mosbacher stated the public should be made
aware of the things the District has done to protect the
environment over the course of this project.
B-LINE REPLACEMENT: PHASE 3
(Consent Item f.)
REGULAR BOARD .','...=_?_TING MINUTES - NOVEMBER 1, 2001 PAGE - 3
Moved Mosbacher / Second Schafer / Passed
Unanimously to approve budget increase to Parsons
Task Order No. 26-A for Biological and Cultural
Resources Year 2000 Surveys in the amount of $6,500.
B-LINE REPLACEMENT: PHASE 3
(Consent Item f. con't.)
Rick Madden did not appear. The Board took action
on this item October 4 and confirmed that action on
October 18. That action still stands. The Board directed
staff to do what is necessary to enforce District
ordinances.
REQUEST TO APPEAR BEFORE
THE BOARD: RICK MADDEN,
1116 BONANZA AVENUE,
APN 32-142-17
No Board action.
ITEMS FOR BOARD ACTION
Director Strohm disqualified himself from participation
in this item due to a potential conflict of interest.
Gary Kvistad gave a brief overview of the process
required to acquire the Heise property in Alpine County.
The District retained Parsons to prepare an Initial Environ-
mental Study of the property for the District's acquisition.
STPUD RECYCLED WATER
MASTER PLAN: ENVIRONMENTAL
REVIEW FOR PROPOSED
PROPERTY ACQUISITION
Bob Duchek, Parsons, explained the first step of the
Negative Declaration process is to prepare an Initial
Study. The project is for the District to acquire approximately
1,442 acres of property owned by Heise Land and Livestock
Company (Heise property), located on both sides of
Diamond Valley Road, east of State Highway 89 and directly
north and northwest of the Harvey Place Reservoir. Of the
1,442 acres, approximately 917 acres are water righted land
that includes rights from the West Fork of the Carson River
and primary and supplemental rights from Indian Creek. The
acquisition of the Heise property by the District provides for
future uses for the disposal of recycled water and is neces-
sary to ensure the District will have the flexibility to enable
the continued reliability of its recycled water program.
Duchek summarized future uses of the property, and the ac-
quisition of transferrable water rights. He pointed out that no
use of the Heise property, other than the continuation of the
existing uses would occur and no transfer of water rights
would be undertaken prior to completion of the Master Plan
and the appropriate environmental documentation. An EIR
(Environmental Impact Report) is being prepared for the
Master Plan. Future uses of the property will only be deter-
mined after the Master Plan is adopted and an EIR is certified.
REGULAR BOARD MEETING MINUTES - NOVEMBER 1, 2001
PAGE - 4
Parsons conducted an Initial Study under CEQA for the
proposed project. As a result of that study, they deter-
mined the project would not have significant environmen-
tal effects. Based on that, the District prepared a Notice
of Intent to adopt a Negative Declaration, which is the
process by which a Negative Declaration is approved. The
Draft Notice of Intent, along with the Initial Study, were dis-
tributed and posted in accordance with CEQA for the public
review period, which ran from October 9 through October
29, 2001. During that time, the District received two letters
from interested parties. One letter was regarding a concern
that Alpine County would lose tax revenue if the District
acquired the property. The impact on tax revenues is not
an environmental issue under CEQA, and therefore is not
considered in the environmental study. (Since the property
is outside the District boundaries and taxes are currently
being paid on the property, the District would be required to
pay property taxes.) The second letter was from the Child
Care Planning Council. Duchek summarized the responses
to those comments.
STPUD RECYCLED WATER
MASTER PLAN: ENVIRONMENTAL
REVIEW FOR PROPOSED
PROPERTY ACQUISITION
(con't.)
In order to continue the environmental process, this item
was placed on the agenda so the Board can consider the
letters received, and also to receive additional public
comments from interested parties. Then the Board can
independently determine if the Negative Declaration is
appropriate.
Herman Zellmer / Alpine County Supervisor reviewed the
history between Alpine County, the ranchers, and the
District. He requested the following:
· Involve Alpine County in the environmental impact report
process.
· No action should be taken on the proposed guiding prin-
ciples and alternatives, and expressly, reject the use of
the alternatives ranking system.
· The alternative that is selected should be mutually accept- able to the six affected ranchers and Alpine County staff.
· Joint meetings should be held.
Leonard Turnbeauah / Alpine County Plannina Department
and Contract Commission Member suggested some of the
Heise property may be out of the District's irrigation area
and that excess land could potentially be used for develop-
ment.
PAGE - 5
REGULAR BOARD MEETING MINUTES - NOVEMBER 1, 2001
David Robertson I Robertson & Benevento (attorney
representine property owner: F. Heise Land and Live.-
stock stated there are three problems with the Initial
Study:
· Diamond Valley School would become landlocked by
this property acquisition.
· The Initial Study fails to take into account there are
impacts that could be cumulatively considerable and
could result in a shortage of property available for
development.
· The Initial Study does not address impacts to archaeo-
logical and historical resources, specifically access to
the Snowshoe Thompson marker and an Indian grinding
STPUD RECYCLED WATER
MASTER PLAN: ENVIRONMENTAL
REVIEW FOR PROPOSED
PROPERTY ACQUISITION
(con't.)
area.
Board members discussed the issues brought up by Mr.
Robertson. Attorney Kvistad, Bob Duchek, and Matt Setty
provided additional information and responded to each of the
concerns raised. Mr. Turnbeaugh also provided clarification
on several points.
Moved Mosbacher / Second Schafer / Strohm Abstained I
Passed to adopt Resolution approving Negative Declaration.
Director Strohm disqualified himself from participation
in this item due to a potential conflict of interest.
Attorney Kvistad reported the Board is required to issue
a Notice of Intent and can authorize staff and general
counsel to send that notice on their behalf. Although
negotiations are continuing, he recommended that the
Board direct him to proceed with the necessary steps to
adopt a Resolution of Necessity in the event that nego-
tiations prove unsuccessful.
STPUD RECYCLED WATER
MASTER PLAN: PROPOSED
PROPERTY ACQUISITION -
NOTICE OF INTENT TO ADOPT
RESOLUTION OF NECESSITY
Mr. Robertson stated it is inappropriate to adopt a
Resolution of Necessity in this case. If the Board directs
general counsel to continue the process, he will return
when it is before the Board for adoption to explain the
reasons why.
Moved Mosbacher / Second Jones / Strohm Abstained /
Passed to authorize sending property owner a Notice o1'
Intent to Adopt a Resolution of Necessity.
3:35 - 3:40 P.M. MEETING BREAK
REGULAR BOARD MEETING MINUTES - NOVEMBER 1, 2001 PAGE - 6
Bob Duchek reported on the overall EIR process and
explained the three major stages: 1 ) scoping; 2) pre-
paration and review of the draft EIR; 3) preparation of
the final EIR. The scoping process has been completed.
Open Houses were held to receive input from interested
parties on environmental issues they felt were appropriate
to be addressed and discussed in the EIR. Additionally,
the Initial Study was prepared and distributed to respon-
sible agencies and to individuals who indicated their
interest. Concerns raised will be addressed in the EIR.
There are forty components in the Master Plan that are
being analyzed; each requiring a separate environmental
analysis. The next step is to develop alternatives. It is
important to have a statement of guiding principles in place
to use when analyzing the environmental effects of those
principles combined with the components and alternatives.
The next step in the environmental review is to develop an
administrative draft of the EIR, followed by a public review
draft that is circulated to all agencies and interested parties
for a 45-day review period. After responding to comments
received, the final step in the environmental review process
is to certify a final EIR, which may take place around
March 2002.
STPUD RECYCLED WATER
MASTER PLAN: GUIDING
PRINCIPLES AND ALTERNATIVES
Duchek, Setty, and Kvistad answered questions from Board
members.
Turnbeaugh suggested the sequence of the guiding principles
be renumbered by importance.
Zellmer encouraged the Board to keep in mind the ranchers
in Alpine County who helped the District thirty years ago,
and to work in their best interests.
President Wallace suggested delaying the adoption of the
guiding principles to allow the consultants time to consider
the comments and concerns raised.
No Board action.
The Finance Committee has reviewed this item and
recommends approval.
Moved Schafer / Second Jones / Passed Unanimously
to exercise optional prepayment provision to repay 25%
of the outstanding principal due on the 1999 ISA in the
amount of $1,150,645.28 at the earliest possible date.
1999 INSTALLMENT SALE AGREE-
MENT (ISA) WITH LASALLE
NATIONAL BANK
REGULAR BOARD MEETING MINUTES - NOVEMBER 1, 2001
PAGE - 7
Moved Jones / Second Schafer / Passed Unanimously
to approve payment in the amount of $1,419,627.08.
Finance Committee: The committee met November 1
and discussed: 1) Partial repayment of 1999
LaSalle loan; 2) 2000/01 Audit; 3) TRPA Certificates
of Deposit, and 4) Self-Insured health plan. Minutes
of the meeting are available upon request.
Water and Wastewater Operations Committee: The
committee met October 29. Minutes of the meeting are
available upon request.
Director Jones reported on his attendance at the Biennial
Groundwater Conference.
Director Strohm urged Board members to remember when
representing the District to express the unified direction of
the Board, and not to imply that their individual opinions
are the consensus of the whole Board.
Director Wallace will act as the Board's El Dorado County
liaison. He expressed interest in serving as one of the two
water purveyors on the newly restructured County Water
Agency Board.
Director Mosbacher reported on three items:
1 ) She likes the District-related messages on the telephone
system that play when you are on hold.
2) An excellent job was done patching near Luther Pass.
3) She attended a meeting of the Upper Truckee River
Watershed Focus Group. They will be working in the
Ledbetter meadow in the spring and are aware that the
District has pipes and lines in that area.
General Manager: Robert Baer reported at the last Board
meeting there was discussion regarding the deletion of
names from the disconnection lists and notices. He
distributed an opinion from general counsel and stated
it would need to be agendized if the policy needed to
be changed.
Tallac Pump Station Force Main Repair Ememencv of
7/5/01: Richard Solbrig reported the costs for the
emergency portion of the project totalled $91,368.
Of that, approximately $50,000 was for materials,
PAYMENT OF CLAIMS
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD MEMBER REPORTS
GENERAL MANAGER / STAFF
REPORTS
STATUS OF EMERGENCY
PROJECT
REGULAR BOARD MEETING MINUTES - NOVEMBER 1~ 2001 PAGE - 8
including rental of steel plates to cover the excavation;
$31,000 for outside contracting services for when the
problem was originally discovered; $5,600 for easement
costs; and $5,365 for outside consultants for soils and
survey work.
5:50 - 5:55 P.M.
5:55 P.M.
6:05 P.M.
STATUS OF EMERGENCY
PROJECT
(con't.)
MEETING BREAK
ADJOURNMENT TO CLOSED
SESSION
RECONVENE TO REGULAR
SESSION
ACTION I REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION
No reportable Board action.
Pursuant to Government Code
Section 54956.9(a)/Conference
with Legal Counsel - Existing
Litigation: STPUD vs. ARCO, et. al.,
San Francisco County Superior
Court Case No. 999128
No reportable Board action.
Pursuant to Government code
Section 54956.9(c)/Conference with
Legal Counsel - Anticipated
Liti.clation {one case)
No reportable Board action.
Pursuant to Government Code
Section 54956.8/Conference with
Real Property Negotiators -
Negotiating Parties: Board of
Directors, Robert BaerlGeneral
Manager. Under Negotiation:
Consideration of Property
Purchase; Property Identification:
APN 1-080-80, APN 1-080-81,
APN 1-080-82, APN 1-080-56,
APN 1-080-60, APN 1-200-01,
APN 1-200-10, APN 1-200-11
REGULAR BOARD MEETING MINUTES - NOVEMBER t~ 2001 PAGE - 9
No reportable Board action.
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel - Existing Litigation:
STPUD vs. Lakeside Park Associa-
tion, et al, County of El Dorado,
Superior Court Case No.
SC20010165
6:05 P.M.
ADJOURNMENT
Duane Wallace, Board President
South Tahoe Public Utility District
Kathy Sharp~'~lerk of the Bo~d
South Tahoe'Public Utility District
on behalf of Alpine Cotmty, I ask your boa~'d to take the
tbllowing actions today:
Reaffirm the conunitment made to Alpine County that a full
environmental impact report will be proposed on the Recycled Water
Master Plan and that Alpine County will have the opportunity to be
fully involved in that process, including review of and comment upon
the administrative draft~
Take no action today on the proposed Guiding Principles and
Alternatives and Expressly Reject Use of the Alternatives Ranking
System used by the consultants. Frankly a 15% weighting of Alpine
County's interest was and is an insult, whatever its' purpose.
Prior to this issue being reagendized, the tbilowing commiunents
previously made by STPUD staff must be honored:
I.
¸2.
A ~neeting must be held with the six affected ranchers and Alpine
County staff to review the proposed alternatives and to determine
whether a mutually acceptable alternative or combination of
alternatives exist.
The STPUD Planning Committee meet with Cotmty staff tu~d myself
to review the alternatives and determine whether a mutually
acceptable alternative or combination of alternatives exists.
3. A .joint meeting being held between your Board and the Contract
Commission to review the results of those meetings and determine if a
preferred alternative can be selected for the environmental review.
4. That those meetings take place within the next two months so that Hal
Bird can be present.
If a preferred alternative is selected, we can ~nove tbrward together.
not, your Board should direct its staff' to specifically report the areas
of disagreement and the options, which have been examined to
If
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