05-17-01SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robed G. Baer, General Manager Richard Solbrig, Assistant Manager
Duane Wallace, President BOARD MEMBER James R. Jones, Vice President
Christopher H. Strohm, Director Mary Lou Mosbacher, Director Eric W. Schafer, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
MAY 17, 2001
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session, May 17,
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, Taylor, Cocking, Adams,
Schroeder, Hussmann, Callian, Anderson, M. Alsbury,
Henderson, Thiel, W. Stanley, Noble, T. Powers, Curtis,
Skelly, Longhofer, Lee, R. Johnson, Trella, Hydrick,
Hoggatt, D. Johnson, Attorney Kvistad.
GUESTS:
Bill Todd / Joint Powers Employee Benefit Authority,
Kevin O'Hair/Business Representative, Stationary
Engineers, Local 39
Ross Johnson accepted an award on the District's behalf
from the California Water Environment Association for
the Sierra Section 2000 Treatment Plant of the Year.
District staff and Board members were acknowledged
for their contributions towards receiving this award.
PRESENTATION: CWEA AWARD
Ken Schroeder gave an overhead presentation showing
the Twin Peaks water tank removal project.
PRESENTATION: TWIN PEAKS
WATER TANK REMOVAL PROJECT
REGULAR BOARD MEETING MINUTES - MAY 17, 2001 PAGE - 2
Bob Baer presented Director Mosbacher with a token
of appreciation for her efforts in seeing this project
through to fruition.
Consent Item b. was brought forward for discussion
prior to Board action.
Moved Jones/Second Schafer/Passed Unanimously_
to approve the Consent Calendar, as amended:
Delinquent Assessments: Fallen Leaf Lake -
Authorized legal counsel to begin foreclosure pro-
ceedings on ten Fallen Leaf Lake Assessment
District properties in arrears on their assessments,
as provided by Resolution No. 2536, adopted
July 16, 1990;
b. See Consent Items Brought Forward for Discussion;
Alpine County Office and Equipment Storage Building -
Approved Change Order No. 1 for Tiqornas Haen
Company, Inc., in the amount of $719.07;
Sewer Enterprise Fund Budget: Fiscal Year 2001-02 -
Adopted Resolution No. 2717-01, adopting the budget
for the Sewer Enterprise Fund;
Water Enterprise Fund Budget: Fiscal Year 2001-02 -
Adopted Resolution No. 2718-01, adopting the budget
for the Water Enterprise Fund;
f. Approved Regular Board Meeting Minutes:
April 19, 2001;
g. Approved Regular Board Meeting Minutes:
May 3, 2001.
PRESENTATION: RECYCLED
WATER FOR FIRE FIGHTING
CORRECTIONS TO THE AGENDA
OR CONSENT CALENDAR
CONSENT CALENDAR
CONSENT ITEMS BROUGHT FORWARD FOR DISCUSSION / ACTION
Director Strohm reported the Operations Committee
reviewed this item and requested 'that staff reexamine
this item and develop alternatives for the Board to
consider in order to reduce the price. ,Jim Hoggatt
2001 MATERIALS TESTING AND
INSPECTION SERVICES
(Consent Item b.)
REGULAR BOARD MEETING MINUTES - MAY 17, 2001 PAGE - 3
reported the significant increase in the California Pre-
vailing wage rate was the reason for the increase. He
presented several options evaluated by staff, and
concluded the original recommendation was the most
feasible. Concentrated efforts will be made to reduce
costs along the way.
Moved Strohm/Second Jones/Passed Unanimously
to approve amendment to Task Order No. 37 for
AMEC Earth and Environmental Inc., in the amount
of $100,000.
2001 MATERIALS TESTING AND
INSPECTION SERVICES
(Consent Item b. continued)
ITEMS FOR BOARD ACTION
Rhonda McFarlane summarized the background that lead
to the development of an employee self-funded savings
program, designed to be used for paying health insurance
premiums after retirement. She introduced Bill Todd, who
helped develop the program. The Internal Revenue Code
required a strong majority of employees be in favor of the
plan. A vote was conducted and employees chose to
reject this plan.
Wanda Stanley and Kevin O'Hair added to the comments
on behalf of the union membership.
No Board action.
Rhonda McFarlane reported the District's pension plan
presently requires a two-year waiting period. Staff
recommends that the waiting period be reduced to one
year, effective immediately. The Finance Committee has
reviewed this item and concurs with staff's recommendation.
There was discussion regarding the effective date. Wanda
Stanley pointed out that if the effective date was July 2002,
the last four employees hired would be negatively impacted.
She recommended changing the date to July 2001.
Moved Wallace/Second Strohm/Passed Unanimously to:
(1) Authorize Plan Trustees to change the waiting period for
joining the Pension Plan to one year beginning July 1, 2001;
and (2) Authorized Plan Trustees to change the pension
vesting schedule to 20% per year of employment beginning
July 1,2001.
EMPLOYEE SELF-FUNDED
INTERNAL REVENUE CODE
SECTION 401(h) BENEFIT
PENSION PLAN AMENDMENT
REGULAR BOARD MEETING MINUTES - MAY 17, 2001 PAGE - 4
John Thiel reported a mandatory pre-bid meeting was
held on April 10, 2001. Bids were opened on April 18,
2001. Three bids were received: Beylick - $138,650.00;
Zim Industries - $177,945.00; and Lang $210,287.50.
HENDERSON WELL DRILLING
After repeated testing of the test well drilled last year,
staff is confident that manganese levels in a production
well would exceed 50 ppb. The latest test results came
in at about 75 ppb. The Department of Health Services
has indicated that the well would require a manganese
removal system. These ion exchange systems are
expensive to construct and operate. Staff believes that
such a system is prohibitively expensive for a well of
this size. Staff recommends the rejection of all bids.
The Operations Committee reviewed this item and
concurs with staff's recommendation.
Moved Jones/Second Strohm/Passed Unanimously
to reject all bids.
Rick Hydrick reported the Al Tahoe Well No. 2 and its
service area will benefit greatly with a VFD. The
operational flexibility provided by VFD's has proven
to be a great asset for all wells driven by a them. This
major water supply well will be operated more efficiently
and effectively with a VFD.
AL TAHOE WELL NO. 2 VARIABLE
FREQUENCY DRIVE (VFD)
Hydrick recommend that the lowest bid received, from
Grove Madsen Industries, be declared non-responsive: it
did not include spare parts, a Multilin 269 over-voltage
protector and was not rated for constant torque, and that
company does not have three years experience with
18-pulse units.
Hydrick also reviewed a minor irregularity associated with
the next lowest bid from Wedco. Wedco did not include a
guarantee with their bid package, but has since provided all
the necessary submittals and is in compliance with all other
specifications.
Moved Mosbacher/Second Strohm/Passed Unanimously
to: (1) Reject Iow bid, from Grove Madsen Industries, as
non-responsive; (2) To waive minor bid discrepancy
(described above); and (3) To award bid to the second Iow
bidder, Wedco Inc., in the amount of $53,841.32.
REGULAR BOARD MEETING MINUTES - MAY 17, 2001 PAGE - 5
Moved Strohm/Second Jones/Passed Unanimously to
enact Ordinance No. 478-011 Amending Ordinance No.
464 Administrative Code Sections 3.1.49, 3.1.50,
and 4.5.12, Superceding Ordinance No. 475-00 in
its Entirety, and Deleting Sections 3.1.32, 3.1.36,
3.1.53 and 3.1.54.
At the May 3, 2001 Board meeting, a presentation was
given regarding several redistricting plans for redrawing
county district lines. It was the consensus of the Board to
direct staff to write a letter expressing the Board's opinion
that whatever plan is eventually approved, at least one
supervisor should be a resident of the Tahoe Basin.
No Board action.
Moved Jones/Second SchafedPassed Unanimously
to approve payment in the amount of $2,057,625.18.
Finance Committee: The committee met May 7 to discuss
the Post Retirement Benefit Plan and 1994 LaSalle loan
refinancing. Minutes of the meeting are available upon
request.
Water and Wastewater Operations Committee: The
committee met May 14. Minutes of the meeting are
available upon request.
Plannin.q Committee: The committee met May 4 to review
Kennedy/Jenks' Alpine County Master Plan presentation
prior to it being shown at the May 16 Board Workshop.
Federal Legislative Ad Hoc Committee: Director Jones
reported he will travel to Washington D. C. and will meet
with various legislators regarding District interests.
Director Mosbacher reported on three items:
1) She attended an Upper Truckee River Focused
Watershed Group meeting. Technical computerized
mapping was the main topic of discussior,.
2) During a Meyers Roundtable Meeting, she learned
that the CHP may not build their new bui!ding this summer.
3) While getting gas at the Meyers Beacon Service Station,
she witnessed the underground storage tank alarm sounding.
The owner ignored it. El Dorado County Environmental
RATE AMENDMENT ORDINANCE
EL DORADO COUNTY
REDISTRICTING
PAYMENT OF CLAIMS
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD MEMBER REPORTS
REGULAR BOARD MEETING MINUTES - MAY 17, 2001 PAGE - 6
Management will look into this. She also reported the
business behind the station may be dumping garbage into
the river.
Director Strohm reported he contacted LAFCO Special
District representatives to invite them to tour District
facilities, but has not received any responses.
President Wallace reported on his attendance at a recent
Lahontan Board meeting where he spoke regarding their
closure policy. The meeting went well.
Director Schafer reported on his attendance at the Alpine
County Board of Supervisors meeting: Judge Dave
DeVore will be sworn in as Alpine County's new superior
court judge. Desert Research Institute also made recom-
mendations regarding future testing in Alpine County.
Chief Financial Officer: Rhonda McFarlane reported the
District's general audit went extremely well.
District Information Officer: Dennis Cocking reported
the ACWA tour of District facilities was well received.
The WateReuse Association will tour the facilities
on May 18.
4:30 P.M.
4:45 P.M.
6:40 P.M.
BOARD MEMBER REPORTS
(continued)
GENERAL MANAGER/STAFF
REPORTS
MEETING BREAK
MEETING RESUMED AND
ADJOURNED TO CLOSED
SESSION
RECONVENE TO REGULAR
SESSION
ACTION / REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION
There was nothing to report regarding this item.
No Board action.
Pursuant to Government Code
Section 54956.9(b)/Conference
with Legal Counsel re: Pending
Litigation (one case)
REGULAR BOARD MEETING MINUTES - MAY 17, 2001 PAGE - 7
There was nothing to report regarding this case.
No Board action.
Legal counsel updated the Board on the status of this
case.
No Board action.
Negotiators were directed regarding this item.
No Board action.
Legal counsel updated the Board and received direction
regarding this case.
No Board action.
There was nothing to report 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
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
Pursuant to Government Code
Section 54956.8/Conference with
Real Property Negotiators -
Negotiating Parties: Board of
Directors, Robert Baer/General
Manager. Under Negotiation:
Consideration of Property
Purchase; Property Identification:
APN 1-080-53, APN 1-080-54,
APN 1-080-56, APN 1-080-60,
APN 1-200-01, APN 1-200-10,
APN 1-200-11
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
Pursuant to Government Code
Section 54957.6(a)/Conference
with Labor Negotiators -
Agency Negotiators: Board of
Directors, Robert Baer/General
Manager. Employee Organization:
Represented and Unrepresented
Employees
REGULAR BOARD MEETING MINUTES - MAY 17, 2001 PAGE - 8
Negotiators were directed regarding this item.
No Board action.
Pursuant to Government Code
Section 54957.6(a)/Conference
with Labor Negotiators -
Agency Negotiators: Labor
Negotiations Ad Hoc Committee,
Robert Baer/General Manager.
Unrepresented Employee Position:
Human Resources Director
6:40 P.M.
ADJOURNMENT
Duane Wallace, Board President
South Tahoe Public Utility District
ATT E S T.'~~~_,~ _/'~
Kathy Sh~15~JClerk of the ¢oard
South Tah"Ce Public Utility District