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2002 07-03 SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" Robert G. Baer, General Mana er Duane Wallace, President BOARD MEMBER Richard Solbri Assistant Mana er James R. Jones, Vice President C?~t~~~~,~~~!,~lb.~i!!~~~~",. ",u'" ......, "',n"" ''''~,~,~~~,~ ,~~~w~.~~~~e~~,~~~"""." "'G" ".., '"''" , , .,~,~,~,,~:. ~~a!~r",~i.~,~?r.. REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT JULY 3, 2002 MINUTES The Board of Directors ofthe South Tahoe Public Utility District met in a regular session, July 3, 2002, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California. BOARD OF DIRECTORS: President Wallace, Directors Jones, Mosbacher. Director Becker arrived at 4:20 p.m. Director Schafer was absent (but participated by teleconference for Action Item d. - Environmental Review for Proposed Property Acquisition). ROLL CALL STAFF: Baer, Solbrig, Sharp, McFarlane, Bird, Coyner, Henderson, W. Stanley, Hussmann, Thiel, Rasmussen, Hoggatt, Attorney Kvistad GUESTS: Denise Phitts/Court Reporter, Stacy Naria [sp]/ representative for Clarence Burr Moved Mosbacher / Second Wallace / Becker and Schafer Absent / Passed to approve the Consent Calendar as submitted: CONSENT CALENDAR a. Glenwood Well Replacement Project - Approved proposal from Western Botanical Services, Inc.; for the revegetation for the Glenwood Well in the amount of $2,650; REGULAR BOARD MEETING MINUTES - JULY 3, 2002 PAGE-2 b. Rejected Liability Claim Received by Mr. Rey Espiritu, APN 25-232-07-005-01 ; c. Export B-Line: Phase 3 - Approved Task Order No. 53S to Carollo Engineers in the amount of $9,430; d. Approved Special Board Meeting Minutes: June 14, 2002. President Wallace presented the Finance Division with a plaque from the Government Finance Officers Assoc- iation for an Award of Excellence in Financial Reporting for Comprehensive Annual Report (CAFR) for the Fiscal Year Ended June 30, 2001. Rhonda McFarlane and District staff members were acknowledged for their contributions to the report. CONSENT CALENDAR ( continued) GOVERNMENT FINANCE OFFICERS ASSOCIATION AWARD ITEMS FOR BOARD ACTION The District and Union negotiating teams have reached agreement on compensation, benefits, and workplace issues for the new four-year contract term. Union members ratified the proposed contract on June 26, 2002 by a 2/3 vote. The MOU will become effective July 4, 2002. All staff members who played a role were thanked for their participation. Moved Jones 1 Second Mosbacher 1 Becker and Schafer Absent 1 Passed to authorize ratification of MOU with International Union of Operating Engineers, Stationary Local 39, AFL-CIO. The District is planning to construct a 210,000 gallon welded-steel water tank on a new foundation that was completed last year. Two bids were opened at the July 2 bid opening. John Thiel recommended two minor bid irregularities be waived: the contractor took the bid book apart; and inadvertently re-entered the bid amount under the Sheeting and Shoring item. Moved Jones 1 Second Mosbacher 1 Seeker and Schafer Absent 1 Passed to award contract to the lowest, respon- sive, responsible bidder, Spiess Construction Co., Inc. in the amount of $139,325.00, and to waive the minor bid irregularity described above. MEMORANDUM OF UNDERSTANDING (MOU) FOR UNION EMPLOYEES GARDNER MOUNTAIN TANK CONSTRUCTION REGULAR BOARD MEETING MINUTES - JULY 3, 2002 PAGE - 3 Overlay on Highway 89 failed last winter due to a combina- EXPORT B-L1NE: PHASE 2 ion of overlay thickness of only one-inch, and the asphalt mix specified in the contract documents. District staff has negotiated cost reductions with the contractor and subcon- tractor. Moved Wallace I Second Jones I Becker and Schafer Absent I Passed to approve purchase order to White Rock Construction to replace overlay on Highway 89 at Luther Pass in the amount of $112,750.16. Moved Mosbacher I Second Jones I Becker and Schafer Absent I Passed to approve payment in the amount of $1,555,536.43. PAYMENT OF CLAIMS 2:26 P.M. - 2:40 P.M. MEETING BREAK Director Schafer participated in this discussion via teleconference. Copies of documents and maps used at the meeting were distributed to Director Schafer in advance. ENVIRONMENTAL REVIEW FOR PROPOSED PROPERTY ACQUISITION The Alpine Superior Court has ordered the District's Board of Directors to clarify its understanding and knowledge with respect to the relative locations and sizes of the property, Alpine County School property, and surrounding properties at the time the Board of Directors adopted the Negative Declaration for acquisition of the property on November 1, 2001. Hal Bird and Attorney Kvistad displayed and reviewed several maps and resources the Board has observed and reviewed during various meetings, open houses, work- shops, tours, and site visits over the year proceeding the November 1, 2001 meeting. Board members affirmed their familiarity with each exhibit and confirmed their know- ledge relating to the proposed property locations and sizes, Alpine County School property, and surrounding properties. Stacy Naria [sp], on behalf of Clarence Burr, received clarification that these maps and resources being reviewed with the Board have been displayed in public on many occasions. , .".._-_._-~_.--._--_.~----------- REGULAR BOARD MEETING MINUTES - JULY 3, 2002 PAGE-4 3:35 P.M. - 3:45 P.M. Attorney Kvistad read aloud the first of two resolutions for the Boards consideration. Moved Jones / Second Mosbacher / Becker Absent / Passed to accept Resolution as written and read clarifying the Board of Directors findings related to adoption of a Negative Declaration of Environmental Impact for acquisi- tion of property as ordered by the Alpine Superior Court. Attorney Kvistad read aloud the second resolution for the Boards consideration. Moved Wallace / Second Jones / Becker Absent / Passed to accept Resolution as written and read clarifying the Board of Directors findings related to adoption of a Negative Declaration of Environmental Impact for acquisi- tion of property as ordered by the Alpine Superior Court. 4:45 P.M. - Director Becker arrived at this point in the meeting. Robert Baer reported on the fire at the base of Heavenly Valley near the gondola. The fire began at 12:30 p.m. today and is spreading. The District has tanks in that area; employees have responded and are aiding fire fighting efforts. 4:40 P.M. 5:05 P.M. MEETING BREAK ENVIRONMENTAL REVIEW FOR PROPOSED PROPERTY ACQUISITION ( continued) GENERAL MANAGER REPORT ADJOURNED TO CLOSED SESSION RECONVENED TO REGULAR SESSION ACTION I REPORT ON ITEM DISCUSSED DURING CLOSED SESSION No reportable Board action. Pursuant to Government Code Section 54957 .6( a)/Conference with Labor Negotiators - Agency Negotiators: Robert Baer/General Manager, Management Committee; Employee Organization: Inter- national Union of Operating Enaineers. Stationary Local 39 REGULAR BOARD MEETING MINUTES - JULY 3, 2002 PAGE-5 No reportable Board action. Pursuant to Government Code Section 54956.9(a) Conference with Legal Counsel - Existing Litigation: STPUD vs. John Breese Memford, et. al. EI Dorado County Superior Court Case No. SC20020030 No reportable Board action. Pursuant to Government Code Section 54956. (a)/Conference with Legal Counsel - Existing Litigation: F. Heise Land & Livestock Com- pany vs. STPUD and Does 1 - 10 Inclusive; Alpine County Superior Court Case No. C18644 No reportable Board action. Pursuant to Government Code Section 54956. (a)/Conference with Legal Counsel - Existing Litigation: F. Heise Land & Livestock Com- pany vs. STPUD and Does 1 - 10 Inclusive; Alpine County Superior Court Case No. C18733 No reportable Board action. Pursuant to Government Code Section 54956(a)/Conference with Legal Counsel - Existing Litigation: STPUD vs. F. Heise Land & Live Stock Company, Inc., William Weaver, Eddie R. Snyder, Crockett Enterprises, Inc., CIV. S-02-0238 MLS JFM United States District Court for the Eastern District of California. Sacramento. CA No reportable Board action. Pursuant to Government Code Section 54956. 9( a)/Conference with Legal Counsel - Existing Litigation: STPUD vs. ARCO, et. aI., San Francisco County Superior Court Case No. 999128 REGULAR BOARD MEETING MINUTES - JULY 3, 2002 PAGE-6 No reportable Board action. No reportable Board action. 5:05 P.M. ATTEST: Kathy Sha South T ah Pursuant to Government Code Section 54956.9(a)/Conference with Legal Counsel - Existing Litigation re: Meyers Landfill Site: United States of America vs. EI Dorado County and City of South Lake Tahoe and Third Party Defendants, Civil Action No. S-01-1520 LKK GGH, United States District Court for the Eastern District of California Pursuant to Government Code Section 54956.9(a)/Conference with Legal Counsel - Existing Litigation: STPUD vs. Lakeside Park Associa- tion, et ai, County of EI Dorado, Superior Court Case No. SC20010165 ADJOURNMENT --~ &1{' D~~ Wallace, Boar S~h Tahoe Public Li.i l- et C C) z - .... W.... Ww :2w en:I: 0::: en OZ ..... oz wC) 0:::- _en c.... LLen OW C::) o:::C) <C o m >=' a::: ~ z ::> ...J g (J)ui zO OZ ~~ <(z :!:w a:::~ 0<( u.a::: ~O (J)u. :cZ 1-0 u.- O!:: zO O~ -0 I-w ~a::: a. a. :!:<( 01- 00 ~z O(J) <( z~ S<( O>=, ~a::: wO :cl- I-~ :cz ~~ wI- ~~ ~ a::: o o o <( z , ::::: ..I...... I, I I I I I - I I I I I I I I I I I I I I =1 I I - - I I l I I = BEFORE THE SOUTH TAHOE PUBLIC UTILITY DISTRICT -000- In the Matter of ENVIRONMENTAL REVIEW FOR PROPOSED ACQUISITION / TRANSCRIPT OF PROCEEDINGS FORMAL BOARD MEETING Wednesday, July 3, 2002 1900 Lake Tahoe Boulevard South Lake Tahoe, California @@~w Reported by: DENISE PHIPPS, CSR #6804, RDR, CRR SIERRA NEVADA REPORTERS (775) 329-6560 A P PEA RAN C E S BOARD MEMBERS PRESENT DUANE WALLACE - PRESIDENT JAMES R. JONES MARY LOU MOSBACHER ERIC W. SCHAFER (Via Phone) ROBERT G. BAER - General Manager RICHARD SOLBRIG - Assistant Manager RHONDA McFARLANE - CFO GARY KVISTAD - District Counsel SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~"..._-_._._-~.---_.~._-_.-."..----------_.._.._~.- 1 TAHOE CITY, CALIFORNIA, WEDNESDAY, JULY 3, 2002, 2:35 P.M. -000- PRESIDENT WALLACE: We're back in seSSlon. And the item we're working on here today is Item 7-0 on our agenda, environmental review for proposed property acquisition. And the requested action is that the Board take such action as necessary to clarify the Board of Director's understanding and knowledge of certain matters related to the Board's adoption of the negative declaration of acquisition of the Heise property. And Gary, I'd like for you, if you don't mind, to lead off and explain why we're here and what we're doing. And for the record, Board Members Mosbacher, Wallace and Jones are present, with Director Schafer on the speaker phone. And you can hear us fine? DIRECTOR SCHAFER: I can hear you fine. Thank you. MR. KVISTAD: All right. You'll recall a while ago, Heise Land and Livestock Company, I'll refer to it as Heise, commenced an action against the SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2 District challenging the negative declaration that you adopted on November 1, 2001. There was a hearing on that matter in Alpine Superior Court on June 10th of this year. At that hearing the court took argument from the parties and had some questions in reviewing the administrative record. One of the issues that the Court was concerned about is whether or not the District's Board of Directors understood where the property was located, the Heise property -- I'll refer to it just as the property -- was located and the size of that property, the location of the school district and its property in relation to the property, and the location of properties around the school district property in so much as it relates to the ability of the school district to expand. The codrt, in looking at the administrative record, in its mind wasn't clear whether it could tell from the record these things. And so what the court did was continue that hearing until July 29th of this year and ordered it back to the Board to clarify the Board's prior findings that you made when you adopted the negative declaration with respect to these matters to confirm your understanding and knowledge so that the court can then know that you did understand these three SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 items, and the three items again are the size and location of the Heise property, the size and location of the school district property, and the surrounding properties around the school. The judge was particularly interested in knowing that you knew and understood those relationships. We discussed at that hearing, at quite a bit of length, the history that the Board had with Alpine County, with your operations in Alpine County, which have gone on since the, geez, I don't know, 30, 40 years. And then the development of a master plan, looking at acquiring, by negotiation, the Heise property. But the judge was -- that was really all outside the administrative record. He really couldn't consider that. So he ordered that it come back here for clarification by their power, by the court's power to order that. So that's why we're here today. It's just to clarify your understanding of these items. And what we've got today to help walk through some of the things that we've done over the last, over probably close to about the last year, both in negotiations with the Heise property and with the master plan that all deal with different instances where we have discussed SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the properties and the school. 4 What we want to do is get your concurrence that, yes, you've seen those things, you understood them; you understood where the school was, where the property was, the size of the school and of the property and what was available around it. that. And we'll also -- Hal Bird will do most of He's gone through and selected certain meetings and stuff to reference where you were in attendance. We brought several of the exhibits we've used over the months, and not all of them, but some of them, to just refresh your recollection so you can see what you were looking at and want some confirmation from you that those are things you had observed and had seen and understood. We'll also talk a little bit about the hearing on November 1st and some of the discussion that occurred at that meeting, particularly with respect to the school property. After we run through all that and confirm your understanding and knowledge concerning these items, what I'll do is propose a resolution based on the presentation today for adoption by the Board. And what I'm anticipating doing is doing it in two parts or two resolutions. One resolution will SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 5 just be a confirmation as to the finding that you understood all these relationships. And the second one would be a reference to an exhibit that will confirm your understanding of the relationships of the property slzes as you understood them to be on November 1st, 2001. And then what I'd ask you to do lS to stay focused on the issues here. The only thing we're going to do today is confirm your understanding and to clarify this point for the court so that we can go back to court on the 29th with these two resolutions and so the judge can then be certain that you did understand that that's the case, these various items dealing with the property, the school and the surrounding properties. We have -- since Director Schafer lS not here, we had a couple of the exhibits, particularly the ones we're going to use to attach to the resolutions delivered to him so he will have those in front of him. The other ones, I know we've talked, and there are a number of items that he's seen. He mayor may not be able to reference, know exactly which one we're talking about. If he knows exactly which one we're talking about, that's great. Other ones he may not. We should just be clear that the ones he does recall that he can SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 6 respond affirmatively to and say yes, I remember that and I saw that. If he didn't, he then says I don't recall because I can't see it right now. The other things weIll talk a little bit about are the site visits that you as the Board have taken over Alpine County, some of the things you've seen over there. And I know Director Schafer was also given at least one individual tour as well. So we'll be going through some of that -- it will take a little while for Hal to walk through all these items, but it's important to lay that foundation. I want the court to be absolutely certain that you have seen enough, you've been involved enough in Alpine County and with your operations there and, in particular, with the master plan and the real property negotiations with the Heise property. There's also been, as you know, a number of items discussed in closed session dealing with the Heise property and acquisition. But we can't go into those without breaking the privilege. So I'm not going to go into those particular items in detail. I think the other -- we'll go through the real property negotiations, some of the things that we did outside of the closed session, or it will be more than sufficient to lay the foundation that you have a very good working SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 knowledge of that property. 7 But that will be for you to determine when we go through these different things. So with that what I'd like to do is turn it over to Hal Bird and have him start through some of the chronology. He'll talk about some of the exhibits when he's going through that, show you those. And then when he gets through, if there's other ones we haven't specifically tied to a particular meeting, he may have a few that he just wants to run by you and make sure you did see those and he'll also describe some of the things that are on that map. So with that, I'll turn it over to Hal. MR. BIRD: It will take me a second to set some of this stuff up. DIRECTOR SCHAFER: It would help to have the speaker stand a little closer to the phone or get the phone closer to the speakers, if you can arrange that In any way. MR. BIRD: As you're well aware, we have an amazing amount of information on both the Heise property and our master plan, which includes the Heise property. It's kind of interesting for myself to go back and take a look at how long we've been doing this. And I will ask you to acknowledge that you SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 were at different things if you were. 19th of the year 2000 was our famous 8 But back in July -- we built the little deck out there in the pasture and Dennis brought his motor home down and we cooked you a steak dinner and started talking about development of a master plan and some of the future options for planned application in the area. And In my recollection, Mary Lou, you were there. Duane and Jim. PRESIDENT WALLACE: I was not there. It's the only meeting I missed, but I caught up on it. DIRECTOR JONES: I think several weeks later you took the two of us and gave us the same tour. PRESIDENT WALLACE: What happened is I missed that meeting and then you and I and -- you scheduled a personal tour for Jim Jones and I and we spent the day in Alpine County. It was about a week later. And we drove the property lines as best we could and toured the facilities. So we got the VIP tour. We didn't get the steak sandwich. DIRECTOR MOSBACHER: And I was there. And I remember the deck is really lovely. And Dennis did a great job cooking for us. I loved the luncheon, and it was very warm. MR. BIRD: These are the fun things of SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 9 trying to go back a couple of years. I do have in my records that on November 1st of 2000 I contacted Clarence Burr, because in October of that year we had heard that the ranch was for sale. He had offered it to Mr. Bentley. And so we made a contact. I called him, and he asked that we have our attorney contact his attorney. So on November 8th, Gary contacted Dave Robertson's office and asked about the sale. What's important about this is just shortly after that, on November 16th of 2000, is when we put on executive session the purchase of the Heise property. So we've actually been talking about that every two weeks in executive session on and off for a long, long time. Just for the record, sometimes it feels to me that I'm insulting your intelligence when I have to take you back through all of what we've given you. But the district is really set up into three parts in our waste water: We have a collection system. We have a treatment system and we have a recycled water system. And so as you're well aware, recycled, getting rid of the recycled water is a very intricate part of the district. Another part that was going on at this time when we were doing the Heise negotiations and SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 10 looking at the Heise property was we were having a Board election. And it became very obvious that that was where we were going to spend lots of money and people were looking at that issue. So I'm aware that the Board took that very seriously. We also have individual Board members that spend a lot of time in Alpine County and took it very seriously. As I said, November 16th we started talking about it, in 2000. December 7th, the Board ordered the contract for master plan to Kennedy/Jenks. And just prior to that December 7th meeting we had interviews. And correct me if I'm wrong, Eric, but I think you sat in on that interview process before you were a Board member. DIRECTOR SCHAFER: That is correct. I was in on the Kennedy/Jenks proposal/presentation. MR. BIRD: Because what I was trying to show is we've had Board members that have taken an interest in some of the Heise information because it was a big part of the district prior to them even coming on the Board. We'll see later that even Cathie Becker was involved. On February 8th, Gary submitted an offer to SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 11 David Robertson's office regarding the Heise property. So that had been gone through in executive session. We talked about March 6 -- we're up to 2001 now -- I toured Eric Schafer and Bob Baer, because Eric was now our new Board member, of the Alpine County facilities. I explained the Heise property and what we were doing and what we were looking at in purchasing. Being such a large dollar item, we spent quite a bit of time. In May of 2001 -- MR. KVISTAD: Get Eric to confirm that, that he recalls that. MR. BIRD: Eric, do you remember a tour In Alpine County? DIRECTOR SCHAFER: Absolutely. I remember we even met with Supervisor Gansburg at his home that day. also. And that was certainly a part of the discussion MR. BIRD: You're bringing recollections back to me. Thank you. PRESIDENT WALLACE: My first tour was in 1991, right after being elected. So I think I took almost one a year since then. So I know the property pretty well myself. MR. BIRD: We give so many tours, it's sometimes hard. We've written them down, a lot of SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 12 them, to keep track. On May 4th, 2000, the planning, started the planning committee meetings, started having quite a few of those. The way that was working, we were working with the planning committee. Then we presented to the planning committee, we would present things to the Board and present them to Alpine County, if you can remember that. We had a planning committee meeting on May We spent from 9:00 until noon. If you remember 16th. all of the little agendas that I gave you and took up half of your day, that we would meet out in the Tahoe Paradise field office and have presentations by myself and Kennedy/Jenks and later on Parsons. I see a lot of nodding heads, so I'm going to -- DIRECTOR SCHAFER: That's correct. DIRECTOR MOSBACHER: I always liked those meetings at the Tahoe Paradise field office because it was a five-minute drive for me. PRESIDENT WALLACE: I was there, and I remember we had various options before us and maps. DIRECTOR JONES: And I also remember all those meetings. MR. BIRD: There's numerous of them. I'll SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 13 continue as we go along. But what we would do is we would present something to you and then we would present it to the Alpine County Contract Commission, because we were trying to work well with Alpine County. June 8th we presented to Alpine County Contract Commission. July 2nd of 2001 we again had a nine to noon Board presentation and discussion. July 2nd, that afternoon, we went down to Alpine County and presented more information to Alpine County. Mary Lou attended many of those meetings. On August 1st, 2001, there was a Board workshop from 9:00 to noon. August 7th, again an Alpine County Contract Commission. August 9th of 2001, there was a special board meeting regarding the Heise property negotiations. August 15th we had the open house in Tahoe from 4:30 to 6:00. DIRECTOR MOSBACHER: I attended that. MR. BIRD: I think the majority of the Board did and some of the people that were running for the Board. PRESIDENT WALLACE: Yes, I was there. DIRECTOR SCHAFER: I was also there. DIRECTOR JONES: And I think I was there. I remember I missed some of them, but I don't remember SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 14 which ones. MR. BIRD: The way I related those meetings is what food items we had. We had hors d'oeuvres here in the City Council Chambers. DIRECTOR JONES: MR. BIRD: Some That rings a bell. we had good food and some we had bad. But the interesting one was the next one in August of 21st we decided to have a big Alpine County meeting. It was from 3:00 to 7:00. We had catered barbecue by Decatur Hatch. They cooked chicken and ribs and drinks, and we did it up. We served 150 dinners, per Hatch. And we had quite a turn-out in Alpine County. We had people from the school district there. We had Board of Supervisors there and we had lots of public. So if you could tell me if you were there and -- DIRECTOR JONES: That's one I'm pretty sure I missed. PRESIDENT WALLACE: I missed that one, but I saw the presentation materials before it happened. DIRECTOR MOSBACHER: And of course I was there and I had my husband with me. And since we're friends with a lot of the people in Alpine County and the Markleeville area, it was very nice. We had a lot SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 15 to eat and we could sit and talk. I remembered I talked with the superintendent of schools, several other people that I know, families that we know. We're good friends with the Nagels, who is a sheriff in the communi ty. So all those people were around. And it was a real communal afternoon for me because of all the folks I knew and plus all the displays and the maps we had and the consultants who were explaining them all to the people and even helped me understand even better some of the things that I had questions about. MR. BIRD: Eric, did you attend that? DIRECTOR SCHAFER: I did attend that. I remember there being, in addition to everything else, a number of department heads from Alpine County there, too. MR. BIRD: Correct. The way that was set up it was an open house format that people could go within different areas of the facility and talk with Kennedy/Jenks representatives. They could explain environmental issues and any impact issues. We also had Parsons, which was doing our EIR. They were there to explain any environmental things that people wanted us to look at. And it was just a prelude to try to get the public's input. PRESIDENT WALLACE: My experience at the SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 16 ones I attended where people who had various ranches there, they would seek a Board member out and point their ranch out and say this is my ranch in the line-up of the ranches that are served by the treated waste water. So you got to know who was in what order and when they came on line with the district and whether they were the original or the down-line holder of that ability to receive the water. MR. BIRD: On August 22nd we again had a nine to noon Board workshop. And then that afternoon, from 4:00 to 7:00, we had an open house in Douglas County at the Carson Valley Inn. And we repeated the same process we had done at the two other meetings where we had an open format and had presentation, maps, photos of the sites. DIRECTOR MOSBACHER: You know that my husband and I again attended. In fact, we went to dinner afterwards with you. MR. BIRD: Yes. DIRECTOR JONES: I was at the morning session, I believe, but I didn't make it down to Douglas County. PRESIDENT WALLACE: I believe the same for me. MR. BIRD: Eric? SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 17 DIRECTOR SCHAFER: Yes, I was there. MR. BIRD: And on September 17th, again we had now public meetings by Parsons on the EIR, on environmental issues they presented going from 4:30 to 6:00 here at the City Council Chambers. Then again on September 18th we had another open house for them to present from 4:00 to 7:00 at Harvey Place Reservoir. And the Alpine County meetings, if I haven't said, have been held at 2595 Diamond Valley Road. You have to enter in through the Heise property to this shop area that's at the reservoir. Then on October 19th, 2001, we had again another Board workshop. Looks like we were keeping you guys busy. Again nine to noon. The way I remember those is we pretty much had you from nine to noon. We never got out of there early. And we presented a variety of items where we were gOlng to give alternatives and different things to Alpine County. On October 25th we presented these to Alpine County Contract Commission, and Mary Lou and Chris Strohm were present for that meeting. And Jenks did a presentation. At the October 25th meeting in Alpine County at the Contract Commission, per their agenda, the discussion was on the possible action regarding South SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 18 Tahoe Public Utility District's Notice of Intent to Adopt a Negative Declaration for Acquisition of the Heise Ranch. It also listed, it was the acreage and where the property was located. I'll go through some of the maps. I could have brought a truckload, as you're probably aware. And we'll go through a little history of how we developed the maps and why we've developed them, and in most cases you've seen these a variety of times. The main part, for the record, is because we've been talking about it for so long, you've seen these time and time again, but we originally developed maps on, quad maps on the topos. And it was a topo-based map. We have one here in front of me, that's the South Carson Valley property ownership of Alpine County and Douglas County, Nevada. And on top of this topo we would put the rivers, the streams, the effluent ditches, the fresh water ditches, the fresh water lakes, the effluent reservoir, our major pipelines. The primary roads in both Alpine and Douglas County, the secondary roads. The unpaved roads: We have the California state line. And then we have, in different colors, located, and shading, we have the different ownerships. We have Bentley property, the Brooke property, Burns, SIERRA NEVADA REPORTERS (775) 329-6560 ~ 1 I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 19 Burr, which is Heise Land and Livestock. CVO property, the Gansburg property, Nedrip, the South Tahoe Public Utility District property, and the River Inn subdivision. Also on this map, it shows the Diamond Valley School location, and it's spelled out Diamond Valley school. It shows Snowshoe Thompson Historical Monument. Again, it's spelled out. It goes on to show where the Woodfords tribal community is. Here it's listed as the Washoe Indian Reservation. And we've put this on a map that's from the -- the bottom of it is from Indian Creek Reservoir and goes all the way up to, I'm going to say to the Ranchos in Nevada. But the Heise property is approximately, I don't know, eight inches across here, four inches wide and very detailed. It also has labeled on it Diamond Valley Road and it shows you how it intersects the property. Have you all been aware of these kind of maps and seen these? DIRECTOR MOSBACHER: I think thos~ are Clint Selio's maps, aren't they? MR. BIRD: Correct. DIRECTOR MOSBACHER: I'm really impressed by his maps. They're very good maps. SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 20 PRESIDENT WALLACE: These were made by Noman, Incorporated and later on we moved to a more detailed map which was made by Kennedy/Jenks. DIRECTOR JONES: I'm aware of that. In fact, I have a copy of one that's similar to that hanging In my office for the last year or so. PRESIDENT WALLACE: I'm well aware of the map, as well as the others I see stacked behind there. MR. BIRD: We'll go through these for the record. A map that I didn't bring because it's a pretty large map, it used to hang in Bob Baer's office, it's a relief map. It's about four feet by eight feet and about a foot thick. Shows all the topography. I think you're all aware of that. DIRECTOR MOSBACHER: That was the map that made me very nervous because it's such a big relief map that I was afraid it was going to fall on his desk and hurt him. MR. BIRD: We have that in my shop and Alpine County and we use that in the presentations to the public at these open houses in Alpine County, along with these other maps. This is again a Noman, Incorporated map. The same setup with a topo, the roads, the streams, the lakes, reservoirs. And all we've done here is go into SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 21 more detail and more shading and we've listed the Bureau of Indian Affairs land, U.S. Forest Service land, Bureau of Land Management land, Alpine County lands, state of California lands. So we're getting more and more detailed and again still showing around the Heise property the Diamond Valley School. We show the pit where they're taking out DG on the Heise property. monument. We show Snowshoe Thompson's historical It's all labeled, the ditches, everything is on here and in good shape. these at other areas? And, again, you've seen PRESIDENT WALLACE: Yes. MR. BIRD: Then we move up to May. May 2001 we flew aerial photography of the valley. We flew, starting in Nevada up through the valley to Indian Creek Reservoir, including Diamond Valley. And then we flew up the canyon from Woodfords to the east fork of the Carson River and up past Woodfords to Hope Valley. But we have excellent aerial photography. It's new so that we can see what was here. We've taken on this map, this map is -- let's see -- Assessor's Parcel Map Alpine County, California. It's by Kennedy/Jenks. And, let's see, it says August of 2001 was the date. And this is a map -- we produced quite a SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 22 few of these. This is the date when this was produced, where we've overlaid all the property lines and given parcel numbers to the properties. And where, like I say, we've overlaid the property from the state line to Indian Creek Reservoir. It includes the Diamond Valley property, the Heise Land and Livestock. It includes the school's property. As you can well see the school is very visible in the photograph. It includes all the properties around the school. Here there's actually big, dark blue lines to show where they exist. And we correspond most of the other areas so we know where our property is and Heise and everybody else. FROM THE AUDIENCE: Excuse me. Can I say something? My name is Stacey Mareea (phonetic) and Clarence. asked me to come. He couldn't be here today. Basically he wants to know why these maps -- why these maps weren't shown at the previous meeting, why they're being shown now? MR. BIRD: We've shown these at numerous meetings. This is what we're clarifying. These have been out probably so many times, that's why they're kind of bent. FROM THE AUDIENCE: These maps have been shown? SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 23 MR. BIRD: Yes. DIRECTOR MOSBACHER: We have smaller copies in color, living color. I have a whole file of them. FROM THE AUDIENCE: He just wanted me to make sure they were the same maps that were shown at the prior meeting. MR. BIRD: Yes, they've been shown so many times, I'm sick of showing them. keep them in my truck. I probably should FROM THE AUDIENCE: I'm just Thank you. here for him. He just wants me to -- MR. BIRD: To give you an example, this is our tour map. When you go on the little truck tours, we pullout a map and this is the actual size that we hand everybody, because it's just a blowup of what we do. And it happens to include the Heise Land and Livestock land because that's what we end up talking about the majority of the time, because this is a huge part of what we're doing. So this one is again the South Carson Valley property ownership map, Alpine County and Douglas County, Nevada. It's just the bottom half of it that we've enlarged. And that's the tour map. Again, these have been at all the open houses, all the public meetings, all the Board SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 24 workshops. MR. KVISTAD: Are you going to go through those now? MR. BIRD: Yes. So I don't have to keep totally repeating myself, but I did want to bring up, at the workshops and the open houses, we had a variety, out In my I can't truck -- I still have a truckload of stuff. show it all. We had photographs. These were produced by Parsons, and Kennedy/Jenks had their own. These were produced by Parsons which we hired to do our EIR. I thought this was a great one to bring. It was displayed at all the open houses. DIRECTOR MOSBACHER: I remember. PRESIDENT WALLACE: I remember it. DIRECTOR JONES: Yes. MR. BIRD: So everybody has seen it. But what is interesting about it is it's called Land Resource Issues for Master Plan. Under land use, it says we're talking about zoning and land use conflicts, possible issues that we've considered. And the two photos that they're using, and we didn't pick the photos, this is Judge Bradford's house. This is the Diamond Valley School. And under historic and SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 25 archeological resources that we were looking at, historic sites, this is the Snowshoe Thompson monument. So we're very aware what we're looking at in the area. I can't go in MR. KVISTAD: That was at the public workshops? MR. BIRD: These were at all the public meetings. DIRECTOR MOSBACHER: Every time you walked in you saw those. MR. KVISTAD: I just wanted to make sure everyone saw those. DIRECTOR JONES: Sure. I saw that and others. PRESIDENT WALLACE: I recognize and remember seeing it at one or two, if not all, of the workshops that I attended. MR. BIRD: Then we went into these larger maps. Before I get into those. I ran around, I stole this off of Bob Baer's wall on the way over here. So he's got a blank spot right now. But in his office, every time you've been in his office, we have this map. We're so proud of these maps, we have maps allover the place. This is a map, an aerial photo. MR. KVISTAD: Let me hold it and you can SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 point. MR. BIRD: It's SlX foot high and three feet wide. It's a large map. I measured from his desk, his little conference table, it's only four feet from the conference table. So it's pretty hard to miss. Again, we have, from into Nevada just past the state line, this looks like Foothill Road, Fairview, down to the bottom of Indian Creek Reservoir. We have mapped out and put the parcel lines so you can see the various properties. You can see the photos of the school. You can see Diamond Valley Road. The Heise property is, I'm going to say, a foot and a half wide by eight, ten inches thick. It's very visible. It's been sitting in his office since the first day they flew the map. So shortly after May, when we printed them, that's been in his office. He had one before I had one. On here where the school is, again they have the parcel lines not only showing the Diamond Valley School, but the properties around it and the properties that we've owned. MR. KVISTAD: Does everyone, has everyone been in Bob's office before? DIRECTOR MOSBACHER: Yes, numerous times. SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 27 DIRECTOR JONES: Yes. MR. BIRD: Eric, do you remember seeing that map on Bob's wall? DIRECTOR SCHAFER: Absolutely. We had a couple of planning committee meetings in that office. And it was used as a reference point when we were doing that. MR. BIRD: I know you guys are in and out of his office on a continual basis. It's a hard thing to miss. I'm pretty proud because he doesn't have photos of other things, he has photos of Alpine County stuff. So I'm real proud of that. Assessor parcel maps: We've had assessor parcel maps. And I've got one in front of me here that we highlighted in two different colors that we talked about the difference between the jungle and the bottom land on the Heise property. That was how Heise Land and Livestock was referring to it. It seemed a little -- what's the jungle versus what is the bottom land? And we took and color-coded those maps, we gave them to all of you and we had a big discussion. And I can't go into a whole lot of detail because a lot of the discussions were held in executive session. But do you remember -- DIRECTOR MOSBACHER: I have a copy of that SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 .,._,..._.__._w...__~_.___.___~__ 28 in my file. MR. BIRD: Mary Lou still has hers. PRESIDENT WALLACE: I remember it well, because of the -- the main reason I remember it is because the discussions regarding how much property we needed and the two sections that his property was being considered in. DIRECTOR JONES: I don't specifically remember that map, but I remember some others that showed that. parcel map. But I don't remember the assessor's MR. BIRD: The other thing that we had to do in evaluating Heise Land and Livestock was water rights. We had, must be, ten maps on water rights. But I grabbed this one because it showed, it was a blow-up, again, of the Heise Land and Livestock. And, like I said, I could have brought a truckload. But this map is development of trying to show what claim numbers of water rights went to the various pieces of property. Again, we have the Heise property outlined in red here. This map is showing the Diamond Valley School, very large, depicted on the map where Heise is in relationship to it. Again, it has Snowshoe Thompson memorial highlighted and where the reservoir is. And this map is just a blow-up of the SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 29 section from Woodfords area to the end of the Heise property. So it's a pretty detailed map. And this goes to the multitude of water rights maps we had. We mainly showed those in executive session because they were confidential except when you probably received -- you've seen them again in the appraisal that they did for Integrated Water Resources. They had our confidential map in their appraisal and I know we talked about that. They also, when we gave you the appraisals, both our appraisal and the appraisal from Integrated Water Resources for the Heise property, it says of the Heise Ranch located on both sides of Diamond Valley Road. They have maps of the area showing the school, showing this map on this side, I'm going to come a little closer, has the school very well highlighted in their appraisal. PRESIDENT WALLACE: Yes, I remember getting the report and reading it and seeing the map. MR. BIRD: And there's a color version of our confidential water rights map also in their appraisal. I know I'm probably boring you with this since you've heard it for a year and a half. The Heise initial study: This was the SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 acquisition of the property. There's a couple of maps in here. One is a general vicinity map, showing where we are in relationship to things. And this map MR. KVISTAD: he's talking about. I'll hand you a copy of what MR. BIRD: Eric, do you have this property site map, the color map? you? Dennis has delivered it to DIRECTOR SCHAFER: Yes, I do. MR. BIRD: This was a map in the initial study. It says Heise Property Acquisition Initial Study October 5th, 2001. And highlighted in green is the Heise property. And we also on that map have the reservoirs and the rivers and the major roads, just to clarify. And before you decided to spend all this money, you asked us to prepare a small little document: Appraisal. It'll give you a hernia. It's a couple inches thick. And there's also an attachment to this. It's prepared by Johnson Perkins. And it's the appraisal of the Heise Land and Livestock property located on both sides of Diamond Valley Road and Alpine County, California. It's owned and it's appraised for us and owned by Heise Land and Livestock. SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 31 In this appraisal -- and you all looked at the appraisal. I'm sure you wanted to look at those numbers. So just for confirmation, you've all seen the appraisal? DIRECTOR MOSBACHER: Absolutely. PRESIDENT WALLACE: Yes. Eric, do you remember seeing the appraisal? DIRECTOR SCHAFER: Oh, absolutely. MR. BIRD: In the appraisal, on page 27, 28, 29 are maps of the Heise Land and Livestock property, also showing the lands around the parcels that border the property. On page 28 it has the map and it shows, and it spells out Diamond Valley School. And it shows the location. It shows Diamond Valley Road and it shows the Snowshoe Thompson monument. Again, the property is broken into parcels, and they're all listed with parcel numbers. Then page 29 is without the parcels in it. Just a giant line showing the outskirts of the entire property and again showing Diamond Valley Road, Diamond Valley School, where Woodfords is. And this map is again one that you've seen time and time again. I brought some things because they're represented. They keep popping up in one or more SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 32 documents. Eric, we sent you some large color maps. DIRECTOR SCHAFER: Correct. MR. BIRD: They say Alternative Band Alternative C, Alternative A. DIRECTOR SCHAFER: Yes. MR. BIRD: I'll start with the one that says Indian Creek Reservoir Improvements. Again, these were presented in open houses and Alpine County Contract Commissions and they've been hanging everywhere. And on this map, this one is -- it has, in orange, the Heise Land and Livestock property outlined. The light orange and the darker orange color is the South Tahoe PUD property outlined. And it talks about what we would -- this was the demonstration of what we wanted to do with improvements to Indian Creek Reservoir. It also again has the roads, the major roads, has the major ditches both, Snowshoe Thompson, number one, the village ditch. It's Snowshoe, two. laid over the aerial photograph, so it's very detailed. And the school property is very distinguished in the photographs around where the property lines show. Again, we ran through these alternatives. I'll go through base alternatives so they stay in somewhat order. We did the same photograph, the same SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 33 photograph, the same size. I'm going to guess that these maps, just so the record knows, they're four foot tall and two and a half feet wide. Is that a good guess? maps. They're large maps. They're very visible On this map what we've done in the base alternative lS we're referring to Heise Land and Livestock. And we've put on there their water rights, where we could apply wetlands. Again, it's outlined in light orange. Our property is in darker orange. It talks about possible repair and habitat improvements on the Heise property. It talks about wetlands, rapid infiltration on the Heise property and how that all ties together. It has a big sign here that says land purchase Heise property. So it was obvious that's what we were talking about. public. Not only to you but to the DIRECTOR MOSBACHER: And we have copies, foldout copies in the booklets of these maps. MR. BIRD: Correct. That's what Eric's looking at right now. They're 11 by 17 copies that went, photo grade quality copies that went into your packets along with these being presented for view in the public. DIRECTOR SCHAFER: Correct. Very detailed, SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 34 the score card on them, all that good stuff. MR. BIRD: Alternative A. Existing Alpine County operations. Again, the same sized photo. And again we depict the Heise property. Our property. The same colors. This one we talk about a 340-acre emergency storage facility, impoundment facility on the Heise property. We talk about preparing habitat improvements on the Heise property. We've talked about permitting additional lands for application of recycled water on the Heise property. Next to this again, in this photo, you can see where the school is in relationship to the Heise property. It's very obvious that the school property and the Heise property do not touch. Again, in other ones we actually have property lines showing. This one again says "Land Purchase, Heise Property." So that's three. I've got two more. Alternative B: Again, same sized map. Large, high quality. These are all done on photo grade quality paper so we could see the detail. It again talks about all the things we want to do on the Heise property. Heise pasture irrigated with West Fork water or recycled water. Land purchase: SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 35 Heise property. Future expansion area: Infiltration basins or wetlands, agaln on the Heise property. I know I'm probably boring you to death with this, but one more time just for the judge, we'll clarify you've seen this or tell me you have seen it once or ten time s, I don't know. DIRECTOR JONES: I've seen those and I remember that's the first I had seen the score card in the process of trying to evaluate it and give some value to all of the alternatives. PRESIDENT WALLACE: Absolutely. I've seen them many times. And besides being there almost every weekend fishing in the summer, we've had to pay attention because there were a lot of dollars involved. So I know these maps probably better than any maps I know of. MR. BIRD: We've inundated you with these maps. DIRECTOR MOSBACHER: I have seen them, I don't know, tens of times. And I can walk to them in my office. right now. I have them in a file in my own office MR. BIRD: The other thing, just for clarity, is it obvious to you that the school property is not next to, bordering the Heise property, according SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 36 to these maps? DIRECTOR MOSBACHER: Sure. PRESIDENT WALLACE: Yes. DIRECTOR JONES: Yes. DIRECTOR SCHAFER: Yes. Yes, I've seen these maps many times. In fact, I carried the main map and reservoir improvements around In my car until the end of tax season, cleared things out. MR. BIRD: And then alternative C, the map that says Recycled Water Application to East Side and Nevada, again same sized map, same photograph, aerial photograph of the entire area. Same colored designations for Heise and the district property. And the reason I'm talking about color designations for Heise and the district property, in most of the maps those are the ones we're designating. That's all we're designating. So, again, it talks about land purchase of the Heise property, remaining additional lands, wetlands possibilities, 340 acres of impoundment facilities for emergency storage, all again related to the Heise property. And we have other maps I can show you, but I think we're getting repetitive. DIRECTOR MOSBACHER: Yeah. SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. BIRD: 37 Like I said, I grabbed these and I had others to select from. A lot of these maps are used not only here but they're in smaller versions, bigger versions. But these were the ones that were carried to all the open houses. That's why they're mounted. So I think that pretty much concludes what I needed to say. I think Gary would like to say some words. And thank you for your time. PRESIDENT WALLACE: Thank you. Why don't we take a break now. Then we'll come back. (Recess taken.) PRESIDENT WALLACE: I'm going to reopen the hearing. It's now been reopened. Gary, would you please proceed. MR. KVISTAD: Hal has just shown you some of the information and asked your acknowledgment as to your knowledge having seen these maps numerous times. The other thing I wanted to go over was on the November 1st Board meeting, the item for adoption of the negative declaration for acquisition of the Heise property, portions of that transcript dealt with discussion regarding the school property, because there was a presentation made by Mr. Robertson as to his SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 38 understanding of where things were that he represented to you that were later then clarified by Mr. Leonard Turnbeaugh with Alpine County, and also with Matt Setty. And I wanted to run past that to make sure you were clear after that discussion where the school was, what was around the school and who owned the properties, whether they're private or public ownership. Because that's one of the issues we're dealing with. And I'll read one excerpt here from Mr. Robertson's statements. It says: "The three problems are as follows: The first is, was identified by the school district. We adopted the comments with respect to acquisition of land by the local Child Care Planning Council. You may not be aware of this, but the school, the Diamond Valley School, lS effectively, or would become effectively landlocked by this acquisition. The District previously acquired all the property to the south of the school through my other client, Mr. Schwake. The property I believe to the west of the school belongs to the Indians and likely could be condemned -- could not be condemned by the school district. The majority of the SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 39 remaining property contiguous to the school would be taken by this acquisition." Basically Mr. Robertson is saying there's no private land around the schools, what he's portraying to you. Continuing, he says: "Acquire property just as well South Tahoe PUD, however what is left out is that the school district may not be able to acquire the Heise property in the future. Analysis of need, and if could very well be that of the district would be, at that point in time, perhaps already have its facilities in place and try to take the position that the school district could not condemn any property as a result. So the initial study fails to take into account, and also fails to take into account if there is other property that, perhaps not contiguous to the school district, that could be condemned by the school district." Later on in the transcript Mr. Robertson says. "I think this is easiest drawn. The easiest way would be to just indicate. " If you recall, this is where he was drawing SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 40 on the white board. DIRECTOR SCHAFER: Correct. MR. KVISTAD: "Here's the highway and I believe this is Indian here's the school. land here. This is the district's land here from prior acquisitions. All of this land across the street is land you are talking about acquiring now. Also land here. So where the school district could have expanded from private interests, perhaps this way or even across the street, if it -- if another entity owns them, another state entity or another public entity, the school may not be able to expand. They may not have..." Then he stops. And then Mr. Jones says: "When you say landlocked, I was thinking of something, you know. And Mr. Robertson says: "I meant landlocked by eminent domain." Later in the transcript, Ms. Mosbacher asked Mr. Turnbeaugh if he knows the size of the school district property. Mr. Turnbeaugh says: "I'm starting to let little details like that slip some, but I could guesstimate it SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 41 around ten acres or so. There is another property about eight acres to the east of it that is zoned, it's supposed to be owned by Fowler and there's another 60 acres." Then it goes on. "There's another roughly 60 acres further east that comes and contacts their property and the school property which is about 60 acres, talking about some property you required. I believe you left 20 acres, Schwake, and I think that contacts the school. The property to the west is Indian trust land." Ms. Mosbacher says: "There's really three parcels that look like, that touch the school that are private? And Mr. Turnbeaugh says: "Across the road there's already in progress a small development. Working from memory, I don't remember Heise Land and Livestock property being contiguous to the school property." Mr. Robertson had said all the land across the street from the school was Heise property. And Leonard here is clarifying that there's some small subdivision across the Diamond Valley Road that is in private ownership, several houses. Leonard later on says, and this is where he SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 42 introduces himself: "I'm Leonard Turnbeaugh, Director of Public Works for Alpine County. Please bear in mind that's not to scale." And here Leonard is back up at the map that Mr. Robertson had drawn on the white board, is making some corrections to it, the way he believes things are laid out. And he says: "Please bear in mind that's not to scale. This is north here. This is the section or quarter line running through here. This is Diamond -- approximately Diamond Valley Road here. What we have, this is school property. And here, this road comes around, it's called Hawkside road. Comes in and turns. They have-- their bus forms down there, the road turns and goes over this way and back into the Schwake property. Now they have this area owned by Fowler, this area Cal Abel. We looked at one time of a road possibly hooking back around and coming out here. My line is a little off. It isn't as quite this narrow on Diamond Valley than what I have drawn here. This Fowler piece is about 8 acres. That makes it, you know, the SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 43 school probably in the 10 acres standpoint or so. Across the road is a little four-lot subdivision that sits in here roughly like this. There's another little piece of land which I believe was sold by Heise Land and Livestock to John Ellis years ago." Then Mr. Jones later on asks: "So the land isn't landlocked?" Mr. Turnbeaugh said: lands around." Later on Mr. Setty confirms some matters "There's other that were brought up by Mr. Turnbeaugh regarding the size of the property. He had called his office, if you recall, and he had corne back in and was giving you information that was taken directly off of the Alpine County Assessor plat maps. And what Mr. Setty said was as follows: "A couple of points of clarification on whether or not the school is landlocked. Property directly to the east of the school district property, which is Book 1, Page 8, Parcel 42 is owned by Mr. Abel. 50 acres non-BIA owned. Parcel No. 41, which is to the north of the school property, is eight acres, which is owned by Mr. Bradshaw, non-BIA. SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 44 Parcel 39 west of the school, another 80 acres, also non-BIA." So what he was pointing out to you, you recall, was that there were several properties around the school district that were non-BIA lands, in other words, private lands, that could be available for acquisition either by negotiation or eminent domain to the district. And what I wanted to do was confirm that you recall those things being discussed from as I read from this transcript. Your understanding -- PRESIDENT WALLACE: What the transcript doesn't show is that Mary Lou at the time was shaking her head when Mr. Robertson was putting up his map, because we know doggone well, we know that especially Mary Lou knows that area well enough to know that his map was not correct enough to be able to challenge his assertions. And it was clear, especially -- and we certainly trusted Mr. Turnbeaugh more since he's there daily, that there were properties available. It was very clear. And the reason why it's clear in my mind is because it was a contentious issue and we were all paYlng very good attention. DIRECTOR JONES: And the reason I asked him about it, his assertion that it was landlocked, is that SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 45 I was pretty sure it wasn't, and I wanted to get that on the record and make sure that we knew exactly what was there. MR. KVISTAD: So after you heard from Mr. Turnbeaugh and Mr. Setty, it was your understanding that it was or was not landlocked? DIRECTOR JONES: From everything else, it verified my feeling that it was not landlocked. MR. KVISTAD: That there were other properties available for acquisition by the school district? DIRECTOR JONES: Yes. DIRECTOR MOSBACHER: Let me just say that in 1976 I started going over to that area socially because I was a good friend of a lady called Ellie O'Toole, who I believe her house is considered still in the Woodfords area, though it's north of 88. And her brother, Sheriff Tom Nagel, is a good friend of mine. And a man who owns property in that general area, Tim Pemberton, went to school with my children. The neighbor that I have right now owns land abutting the former Schwake property, the Baginski family, and so I'm used to going in that area. I had a very good friend who taught school at the Diamond Valley Sc~ool and in fact invited me, SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 46 and I gave some workshops for the children in that school and was invited by the principal to have lunch with the children one of the days I gave a workshop. So I was used to going over in there and I know the area fairly well. In addition to that, after the purchase of the Schwake property, Hal Bird and I went out and walked that whole property. And in fact I saw the TV cable laying coiled up on the ground. So I know how they even handled their TV cable in that area. So I'm real familiar with that area and I knew that there was private property in. And the minute I saw Mr. Robertson's drawing, I knew it wasn't accurate, because I was so used to going over in that area. MR. KVISTAD: Okay. DIRECTOR SCHAFER: I'm here, and I remember very clearly Mr. Turnbeaugh being very deliberate about, as you would say, clarifying the map that had previously been drawn on the white board by Mr. Robertson. And so that discussion took place and it showed us a more accurate depiction of the property ownership. MR. KVISTAD: So your understanding after that discussion and from previous discussion was, were SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 47 there other properties around the school district property available for acquisition by the school? DIRECTOR SCHAFER: Yes. MR. KVISTAD: Next I'd like to show you a map that we had prepared by Kennedy/Jenks that depicts the location of the Heise property and some of the school district property and some of the properties around the school district. And what we've done is referenced them by some of the names that were discussed at the November 1 hearing or meeting. At the top, Eric, this is the one titled Vicinity Map. DIRECTOR SCHAFER: Yes, sir. MR. KVISTAD: What I wanted to clarify with you, this lS obviously a better map than what was drawn on the white board the day of the November 1, 2001 meeting. But I'd like to see if this generally depicts your understanding at that time of the relationship between the school district, the surrounding properties that we were in private ownership in relation to the Heise property. And I'd like you each to acknowledge that, or if that doesn't depict it, then tell me why not. DIRECTOR SCHAFER: I can acknowledge that this is the way I interpreted the ownership issue after SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 48 the presentation by Mr. Turnbeaugh, that there was other land available around the school. DIRECTOR JONES: And I'll agree to that, yes. PRESIDENT WALLACE: That's the way I remember it. And I didn't remember the names of the property owners, but that's generally the configuration of the rough drawings. And the bottom line was, were there other properties that abutted up against the Indian or the school there, the Alpine County school? And the answer is yes. DIRECTOR MOSBACHER: And I do agree not only from the map but from actually walking around the area and being in the area that it looks very much like this. MR. KVISTAD: So I think at this point I'd like to confirm with each of you that you did understand the relationship, let's say, first, the location and the size of the Heise property as depicted with the many things Hal showed you as well as what's before you right now, that there was no doubt in your mind as far as the location of the Heise property and the size of the property? I'd like to just confirm that with you. DIRECTOR MOSBACHER: Well, I'm pretty SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 49 familiar with that area and that property. And I've walked out to the memorial myself. And one day our former attorney took me out and we looked at fences because I needed some fencing, and I even can tell you some of the fencing in that area is material that was used for runways during World War II in the islands. MR. KVISTAD: Okay. PRESIDENT WALLACE: My answer is I've lived in Lake Tahoe since 1974 and my father was the probation officer of Alpine County for about 12 years. And so I spent a lot of time out there with him visiting him and fishing, and I've been on the Board since '91, and the first week I was on the Board I took a tour of that area and it was explained to me. And besides the map in Baer's office, I've been out there many times and I'm very familiar with the lay of the land as a result of other court actions and acquisitions and things of that nature. It seems like almost every meeting we've either discussed that property, some property in that valley at one time or another. So I'm as familiar as one could be. I think perhaps more familiar than people who live there. DIRECTOR JONES: My experience in Alpine County goes back to, I guess, the '50s when I was a SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 50 kid. We'd come up camping here at Tahoe or Alpine County. In the '60s, when I was living in the Sacramento area, I did a lot of exploring. And then in the '70s, In '77, when I was elected to the Board, I spent a lot of time over there over the years when we've gone through different acquisitions, as well as the construction. And I've been very familiar. In addition to that, as an engineer and a surveyor, I've done a lot of work in Alpine County. I'm very familiar on that level also over the years. So MR. KVISTAD: Okay. What I'm going to do is here. DIRECTOR SCHAFER: I can MR. KVISTAD: I left you out. I'm sorry. DIRECTOR SCHAFER: That's all right. I'm I can say little did I know that the planning committee involved tons of hours of looking at maps, walking it and talking it and everything else, there definitely was no ambiguity in my mind about what we were doing. MR. KVISTAD: As I mentioned at the beginning, what I'm going to do is propose two resolutions for you to adopt. And I've got some notes and stuff I'm going to read from to make that resolution and then ask that, consider that, discuss SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 51 it, and if it meets with your approval, for you to adopt it. This will be a resolution of the Board of Directors of the South Tahoe Public Utility District clarifying the Board of Directors findings related to adoption of a negative declaration of environmental impact for acquisition of property as ordered by the Alpine Superior Court. Whereas, the District is pursuing the acquisition of certain property generally described as approximately 1,442.92 acres located on Diamond Valley Road in northeastern Alpine County, California, and more particularly described in the map.. .And I'm going to show you a map in just a moment. I'll just finish this one. . . .more particularly described in the map and legal description attached as Exhibit A and incorporated by this reference. And what I will do is attach this map that just shows the property and some of the adjacent parcel maps as Exhibit A to the resolution. We will also attach the legal description that we used in the eminent domain action as far as the metes and bounds description. first whereas. So that will be the SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 52 Whereas, the District determined that acquisition of the property was a project under the California Environmental Quality Act, otherwise known as CEQA, and prepared an initial study to evaluate the potential environmental effects associated with the property acquisition. Whereas, the initial study indicated that the property acquisition would not create a significant effect on the environment and therefore the District prepared and circulated a negative declaration for public review and comment. Whereas, the Board of Directors lS very familiar with the respective locations and sizes of the property, property owned by the Alpine County School District and surrounding properties for numerous reasons including, but not limited to: The District's operations in Alpine County have extended over several decades that has developed into a good working relationship with Alpine County and several ranchers in Alpine County that receive recycle water for application on their lands, resulting in a good understanding of property locations and sizes and geography in the vicinity of the District's facilities. S, the active participation of the Soard members In the development of the master plan for SIERRA NEVADA REPORTERS (775) 329-6560 1 2 ~ 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 53 recycled water facilities which involved numerous meetings, workshops, studies, presentations maps and reports. C, the extensive real property negotiations regarding the proposed property acquisition with F. Heise Land and Livestock Company, and I'll refer to this as Heise, prior to consideration of the negative declaration which has involved numerous maps, photographs, reports, meetings, presentations, all of which were conducted in closed session pursuant to the Brown Act. 0, the appraisal of the property which included a detailed map of the property and surrounding properties, including the location of the school property. E, the selection, retention and interface of the environmental consultant, Parsons, to prepare the initial study and the master plan including, but not limited to maps, photographs, reports, presentations and meetings. F, the selection, retention, interface with Kennedy/Jenks consultants to evaluate properties for acquisition by the District and development of the master plan including, but not limited to maps, photographs, studies, reports, meetings and SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 54 presentations. G, visits arranged by District staff to view Alpine County with respect to the District's existing operations at facilities and relationship to surrounding properties and uses. And last, H, the individual knowledge of the various Board members related to their experiences in living in the Tahoe area and familiarity with being In Alpine County on numerous occasions as you have discussed earlier. Whereas, the Board of Directors reviewed the initial study, including a color copy of the map depicted as figure 2, prior to November 1, 2001, which depicted the location of the property in Alpine County as understood by the Board of Directors. Whereas, the District held a regular public Board of Directors meeting on November 1, 2001, one item which was to consider adoption of the negative declaration for acquisition of the property. Whereas, all five Board members of the Board of Directors were present for the public meeting, and, except that Director Strohm abstained from participating in the public meeting due to a potential conflict of interest, voted for adoption of the negative declaration. Director Becker has since SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 55 replaced Director Strohm after the last election of the Board of Directors in which Director Strohm did not seek re-election. Whereas, at the public meeting the Board of Directors received evidence concerning the relative locations of the property, school property and the surrounding properties (as documented by the transcript of the public meeting) which included the following: A, a map drawn by Mr. Robertson on the white board that inaccurately depicted the relative locations of the property, the school property and surrounding properties by which Mr. Robertson attempted to show that there was no available adjacent properties suitable for expansion of the school district facilities. The drawing was inaccurate in that the property was drawn adjacent to the school property, omitted properties held in private ownership adjacent to the school property and erroneously referenced properties adjacent to the school property as being owned by "a state entity or another public entity" such that the school district could not acquire any property by condemnation. 0, Leonard Turnbeaugh, Director of Public Works for Alpine County, revised the map drawn by SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 56 Mr. Robertson to correctly depict the relative locations of the property, the school property and surrounding properties, including the locations of the Diamond Valley Road and Hawkside Road; the location and size of the school property, which is ten acres; and, the location of properties adjacent to the school property including one property to the west in private ownership of approximately eight acres, the Schwake property now owned by the District, approximately 21 acres, property owned by Cal Abel, a four unit subdivision located across Diamond Valley Road from the school and property owned by John Ellis. And C, Matt Setty, Kennedy/Jenks Consultants, provided supplemental information read directly off the Alpine County Assessor Parcel Plats that further clarified the information provided by Mr. Turnbeaugh, that the school property was not landlocked since Mr. Abel's property is located directly to the east of the school property and consists of 50 acres, Mr. Bradshaw's property is located to the north of the school property, eight acres, and the property located to the west of the school property is in private ownership and consists of eight acres. Whereas, the Board of Directors adopted the SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 57 negative declaration of environmental impact for acquisition of the property pursuant to Resolution No. 2726-01 after consideration of the initial study, two letters submitted addressing the initial study, responses to such letters and other evidence and testimony submitted at the public meeting. Whereas, Heise filed a Writ of Mandate action In Alpine County Superior Court, Case No. C18644, claiming that the district failed to comply with the California Environmental Quality Act for the District's proposed acquisition of the property. Whereas, on June 10th, 2002, the Alpine Superior Court held a hearing on the Writ of Mandate during which the Court continued the hearing and ordered the District's Board of Directors to take such action as it deems necessary or appropriate to clarify the Board of Director's findings regarding the respective locations and sizes of property, property owned by Alpine County Unified School District and other properties in private ownership located in the vicinity of the property and the school property. Whereas, the purpose of this resolution is to clarify the Board of Director's findings for the court with respect to the respective locations and Slzes of the property, the school property and SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 58 surrounding properties at the time the Board of Directors adopted the negative declaration and is not intended to supplement or amend the administrative record concerning adoption of the negative declaration for acquisition of the property. Now therefore, be it resolved that the Board of Directors clarifies its findings contained in Resolution No. 2726-02 as follows: And the first resolution I'm going to propose would contain this finding only. The Board of Directors fully understood the respective locations and sizes of the property and the school property and that there were several properties held in private ownership immediately adjacent to the school property that were available for acquisition by the school district in the event it desired to expand its facilities. That would be my proposed first resolution for you to consider adopting. DIRECTOR JONES: I'll make a motion that we accept the resolution as just read to us. DIRECTOR MOSBACHER: I can second that. PRESIDENT WALLACE: Okay. Eric, can you hear well? DIRECTOR SCHAFER: I heard I can. SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 10 11 12 13 14 15 16 17 18 4 5 6 7 8 9 19 20 21 22 23 24 25 59 everything. PRESIDENT WALLACE: We've had a motion and a second to accept the resolutions as written and read. And if there's any further discussion from members of the Board regarding any clarification or from the public, please speak now. (No response.) PRESIDENT WALLACE: Seeing none, then I will call for the vote, and I'm going to do it by roll call since Director Schafer doesn't have a button available to him. So Director Schafer? DIRECTOR SCHAFER: Aye. PRES.IDENT WALLACE: Director Mosbacher? DIRECTOR MOSBACHER: Aye. PRESIDENT WALLACE: Director Jones? DIRECTOR JONES: Aye. PRESIDENT WALLACE: Director Wallace. Aye. So the motion passes by four votes, with Director Becker being absent. (Whereupon, a vote was taken and the motion passed unanimously.) MR. KVISTAD: The second resolution I'm going to propose is the same, all the same whereases, SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 60 except now what I'm going to do is it would be a different finding on behalf of the Board. So it would be after the clause "Now therefore be it resolved that the board of directors clarifies its findings contained in Resolution No. 2726-01 as follows:" And the finding would be as follows: The map attached as Exhibit B -- which Exhibit B will be the map titled Vicinity Map that I distributed to you incorporated by this reference, accurately depicts the Board of Director's understanding and knowledge of the respective locations and sizes of the property, the school property and the surrounding properties at the time of the public meeting when the Board adopted the negative declaration. That would be my proposed second resolution. PRESIDENT WALLACE: Well, it certainly reflects my understanding. So I will make the motion that we accept the resolution as written and read. DIRECTOR JONES: I'll second it. PRESIDENT WALLACE: So we have a motion and a second. Any further discussion from members of the public or from the Board regarding this item? (No response.) PRESIDENT WALLACE: Seeing none, then I will SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 10 11 12 13 14 15 16 4 5 6 7 8 9 17 18 19 20 21 22 23 24 25 61 poll the board. Director Schafer? DIRECTOR SCHAFER: Aye. PRESIDENT WALLACE: Director Mosbacher? DIRECTOR MOSBACHER: Aye. PRESIDENT WALLACE: Director Jones? DIRECTOR JONES: Aye. PRESIDENT WALLACE: Director Wallace? Aye. That motion passes four, and Director Becker has entered the room but was not aware of this issue so will not be voting. (Whereupon, a vote was taken and the motion passed unanimously.) MR. KVISTAD: That's the end of this agenda item. PRESIDENT WALLACE: Thank you. (Proceedings concluded at 4:15 p.m.) -000- SIERRA NEVADA REPORTERS (775) 329-6560 1 2 3 4 10 11 12 13 14 5 6 7 8 9 15 16 17 18 19 20 21 22 23 24 25 62 STATE OF NEVADA, ss. COUNTY OF WASHOE. I, DENISE PHIPPS, Certified Court Reporter in and for the County of Washoe, State of Nevada, do hereby certify; That on Wednesday, July 3, 2002, at the City Council Chambers, 900 Lake Tahoe Boulevard, South Lake Tahoe, California, I was present and took verbatim stenotype notes of the Hearing entitled herein, and thereafter transcribed the same into typewriting as herein appears; That said hearing was taken in stenotype notes by me, a Certified Court Reporter, and thereafter reduced to typewriting under my direction as herein appears; That the foregoing transcript is a full, true and correct transcription of my stenotype notes of said hearing. Dated at Reno, Nevada, this 5th day of July, 2002. 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