2003 05-15SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
James R. Jones, President
BOARD MEMBER
Edc Schafer, Vice President
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
MAY 15, 2003
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session, May 15,
2003, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California.
BOARD OF DIRECTORS: ROLL CALL
President Jones, Directors Wallace, Schafer, Becker,
Mosbacher.
STAFF:
Solbrig, Sharp, McFarlane, Cocking, Coyner, Bergsohn,
Metz, R. Johnson, Schroeder, Henderson, Rasmussen,
Swain, Hussmann, Attorney Kvistad.
GUESTS;..
Myles MargadylPublic Agency Retirement Planning, Inc.;
Soozie Brooks and Deborah Babineau/BB&H Benefits
Design, Inc.
It was noted that Consent Item d. (Delinquent Assess-
ments: Fallen Leaf Lake) should state there is only
one property in arrears, not nine as shown.
CORRECTIONS TO THE AGENDA
OR CONSENT CALENDAR
Consent Item c. (Flagpole and Elks Club Well Drilling
Project), and Consent Item i. (Water Enterprise Fund
Budget: Fiscal Year 2003-04), were brought forward for
discussion prior to Board action.
REGULAR BOARD MEETING MINUTES - MAY t$~ 2003 PAGE - 2
Moved Wallace / Second Becker / Passed Unanimously
to approve the Consent Calendar as amended:
CONSENT CALENDAR
Auto Shop: Temporary Help - Approved ongoing
temporary employment through a temporary
employment agency for a position in the auto shop
for a period not to exceed beyond June 30, 2004,
in an estimated amount of $900 per week;
b. Water Leak Locator Bid - Rejected all bids (none
met the minimum specifications).
c. See Consent Items Brought Forward;
Delinquent Assessments: Fallen Leaf Lake -
Authorized legal counsel to begin foreclosure
proceedings on one Fallen Leaf Lake assessment
district property in arrears on their assessments, as
provided by Resolution No. 2536, adopted 7116/90;
Recycled Water Master Plan - Approved budget
augmentation for Kennedy Jenks for completion of
Recycled Water Master Plan in the amount of
$31,25O;
Pre-tax payroll deduction for employee contributions
to CalPERS (California Public Employees' Retirement
System) -Adopted Resolution adopting the CalPERS
Employer Pickup Program;
go
CalPERS Certification of Compliance - Government
Code Section 7507 - Authorized execution of Certification
with Section 7507 of the Government Code stating that
total contract cost for 2003-2004 fiscal year, in the
amount of $795,133.73, was made public;
Sewer Enterprise Fund Budget: Fiscal Year 2003-04 -
Adopted Resolution adopting the budget for the Sewer
Enterprise Fund;
i. See Consent Items Brought Forward;
November 4, 2003 Consolidated Districts Election -
Adopted Resolution declaring an election be held in
its jurisdiction, consolidation with other Districts,
requesting election services;
REGULAR BOARD MEETING MINUTES - MAY 15~ 2003 PAGE - 3
District's Public Records Policy - Adopted Resolution
pertaining to the revised Public Records Policy, super-
seding Resolution No. 2747-02 in its entirety.
CONSENT CALENDAR
(continued)
CONSENT ITEMS BROUGHT FORWARD FOR DISCUSSION I ACTION
Director Schafer requested that staff negotiate contracts
that show no evidence of contractor cost markups.
Moved Schafer i Second Wallace / Passed Unanimously
to approve proposal from Nimbus Engineers in the amount
of $122,835 to oversee drilling test well at Flagpole and
replacement well at Elk's Club.
FLAGPOLE AND ELK'S CLUB WELL
DRILLING PROJECT
(Consent Item c.)
Rhonda McFarlane pointed out minor changes to the
headings in the capital budget.
Moved Schafer I Second Becker / Passed Unanimously
to adopt Resolution adopting the budget for the Water
Enterprise Fund.
WATER ENTERPRISE FUND
BUDGET: FISCAL YEAR 2003104
(Consent Item i.)
ITEMS FOR BOARD ACTION
CalPERS requires that a Resolution of Intention to
Enter into a Contract be passed by the Board. Rhonda
McFarlane reported the District's Union and management
employees voted to approve participation in the CalPERS
retirement system and to adopt two side letters that were
previously approved by the Board. She introduced
Myles Margady, Public Agency Retirement Planning, Inc.,
who reviewed the benefits of CalPERS.
RESOLUTION OF INTENTION TO
ENTER INTO A CONTRACT WITH
CALPERS (CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT
SYSTEM)
Moved Schafer / Second Wallace / Passed Unanimously
to: (1) Adopt a Resolution of Intention to approve a contract
between South Tahoe Public Utility District and CalPERS;
and (2) Authorize execution of Certification of Governing
Body's Action.
Board members commended staff for their diligence in
bring this to fruition. Staff thanked the Board for their
cooperation and support.
The District is entering into Letters of Agreement with the
management staff and Stationary Engineers, Local 39. In
one of the Letters of Agreement, the District agreed to
SOUTH TAHOE PUBLIC UTILITY
DISTRICT DEFERRED COMPEN-
SATION PLAN AMENDMENT
REGULAR BOARD MEETING MINUTES - MAY 15~ 2003 PAGE - 4
allow participant loans from the Deferred Compensation
Plan. Participant loans are an optional provision allowed
for under the Economic Growth and Tax Relief
Reconciliation Act of 2001.
Moved Schafer / Second Becker / Passed Unanimously
to: (1) Authorize the Plan Trustees to amend the Plan
document and adoption agreement to offer participant
loans from the Deferred Compensation Plan assets
commencing June 18, 2003; and (2) Adopt Resolution
amending the STPUD Deferred Compensation Plan.
The District requested that the Christiana Inn install a
320 gallon grease interceptor, based upon a study of
grease producers in South Lake Tahoe. The owner,
Gerald Mershon, has been granted an extension on
several occasions. He has requested another extension
due to financial reasons.
Lisa Coyner reported Mr. Mershon presented this issue
to the Operations Committee at their May 13 meeting. It
was agreed that Mr. Mershon will attend the June 2
Operations Committee to continue discussion of this issue.
In order to ensure the interceptor is installed during this
construction season, the committee requested Mr. Mershon
bring a time line of installation progress and a plumbers
estimate to the meeting with him.
No Board action.
The District has been working with El Dorado County
(County), California Tahoe Conservancy (CTC), and the
City of South Lake Tahoe (City) regarding use and
maintenance of the Al Tahoe access road. The County
and CTC have entered into an agreement for the County
to construct recreational and related improvements on the
CTC property. The County has requested the District
grant a license over the District's property to construct
and install the improvements.
The District is currently in negotiations with the City to
determine if it would accept a dedication of the road
from both the District and CTC. A dedication of the
road would significantly simplify the required arrangement
since the access road would be a public road (no agree-
ments for its use would be necessary). If the City will
SOUTH TAHOE PUBLIC UTILITY
DISTRICT DEFERRED
COMPENSATION PLAN
AMENDMENT
(continued)
CHRISTIANA INN GREASE
INTERCEPTOR
AL TAHOE ACCESS ROAD
REGULAR BOARD MEETING MINUTES - MAY 15~ 2003 PAGE
not accept a dedication, several agreements will need
to be negotiated and prepared to allow construction
and use of the road for the ballfields, and for the District's
use of a portion of the CTC property where the access
road crosses it.
The County anticipates commencing construction in
June which would not allow sufficient time to finalize
arrangements concerning the access road. Accordingly,
staff recommended that the Board approve a License
Agreement between the District and the County to
allow the County to use the access road for construction
and installation of ballfields.
Moved Wallace / Second Becket / Passed Unanimously
to approve License Agreement between the District and
El Dorado County for the County's use of the Al Tahoe
access road for construction of the ballfields.
Director Mosbacher disqualified herself from participation
in this item per a previously disclosed potential conflict of
interest. She did not read the material associated with this
agenda item, and she left the room while it was being
discussed and voted on.
Richard Solbrig reported he sent a letter to TRPA request-
ing their assistance in keeping the project on schedule to
allow construction in the 2004 building season. Since the
final route alternative still has not been approved, and in
order for the District to keep on schedule, it is necessary to
commence with final design ahead of approval.
Moved Wallace / Second Schafer / Mosbacher Abstained /
Passed to direct staff to authorize Carollo Engineers to
proceed under the existing contract to complete the design
work.
President Jones will accompany staff to the May 28 TRPA
meeting to keep their Board apprised of the need to finalize
a route selection so the project can move forward without
delay.
Moved Wallace / Second Becket / Passed Unanimously
to approve payment in the amount of $701,403.06.
AL TAHOE ACCESS ROAD
(continued)
B-LINE REPLACEMENT: PHASE 3
REPLACEMENT PROJECT
PAYMENT OF CLAIMS
REGULAR BOARD MEETING MINUTES - MAY t$~ 2003
PAGE-6
Finance Committee: The committee met May 8. Topics
of discussion included: self-insured medical plan,
financial statements, and enterprise funds. Minutes of
the meeting are available upon request.
BOARD MEMBER STANDING
COMMITTEE REPORTS
Water and Wastewater Operations Committee: The
committee met May 13. Minutes of the meeting are
available upon request.
Administration Ad Hoc Committee;. The committee met
with the architect regarding building and site design.
There are many regulatory requirements the building
must conform to.
Deborah Babineau and Soozie Brooks, BB&H Benefit
Design, Inc., gave an overhead presentation that
reviewed administrative and privacy requirements of the
Health Insurance Portability and Accountability Act of
1996. They also distributed a handout to the Board
containing an Executive Summary of the medical self-
insurance program's 2002 Plan Year Experience.
Funding levels for the self-insured medical plan will be
discussed at a future Finance Committee meeting.
Interim General Manager: Richard Solbrig reported the
waterline replacement project was underway.
BOARD MEMBER AD HOC
COMMITTEE REPORT
PRESENTATION: SELF-INSURED
HEALTH PLAN
INTERIM GENERAL MANAGER
REPORT
Manager of Water Operations: Rick Hydrick distributed
results of the lab tests taken on the Bakersfield Well.
Extremely Iow levels of MTBE were detected while
modifying the well to comply with future arsenic standards.
Further investigations will be done.
Hydrick reported MTBE was also detected in the Paloma
sentinel well. Staff has met with Lahontan and an investiga-
tion will be done.
District Information Officer; Dennis Cocking reported he
will meet with Assemblywoman Kehoe regarding the
water metering bill.
Director Wallace reported he will attend a special Board
meeting of the agency on May 16 to resolve the General
Manager situation. They now have five Board members
(Rusty Dupray replaced Carl Borelli).
EL DORADO COUNTY WATER
AGENCY PURVEYORS
REPRESENTATIVES REPORT
REGULa, R BOARD ~',~-"ETING MINUTES - MAY 15, 2003 PAGE - 7
Director Schafer reported on his attendance at the
May 1-3 CASA meeting, and the ACWA Directors
Workshop held on May 6. He thanked staff for the
tour of the Alpine County property.
BOARD MEMBER REPORTS
President Jones reported on his attendance at the
ACWA Conference. He also spoke to people from
Orange County who are suing the oil companies
for MTBE contamination.
Director Becker submitted her resignation from the
Board, effective June 1.
4:50 - 5:05 P.M.
MEETING BREAK
ITEMS FOR BOARD ACTION
Moved Schafer / Second Wallace / Passed Uanimously
to add this item to the agenda as Action Item g. This was
brought to the Board's attention after the posting of the
agenda.
DIRECTOR RESIGNATION
(SEAT NO. 1)
Moved Walace / Second Schafer / Passed Unanimously
to accept Director Becker's resignation, effective June 1,
2003, and to immediately proceed with the process of
filling the vacancy.
5:10 P.M.
ADJOURNED TO CLOSED
SESSION
6:25 P.M.
RECONVENED TO REGULAR
SESSION
ACTION I REPORT ON ITEM DISCUSSED DURING CLOSED SESSION
No reportable Board action.
Pursuant to Government Code
Section 54956.9(a)lConference
with Legal Counsel - Existing
Litigation: STPUD vs. ARCO, et. al,
San Francisco County Superior
Court Case No. 8C20020030
REGULAR BOARD MEETING MINUTES - MAY !5, 2003
No reportable Board action.
No reportable Board action
No reportable Board action.
No reportable Board action
No reportable Board action
PAGE - 8
Pursuant to Government Code
Section 54956.951Conference with
Legal Counsel Regarding Claim
Received from James and Millie
Russ, APN 18-270-11
Pursuant to Government Code
Section 54956.(a)/Conference with
Legal Counsel - Existing Litigation:
STPUD vs. John Breese Mumford,
et al., El Dorado County Superior
Court Case No. SC20020030
Pursuant to Government Code
Section 54956.9(c)/Conference with
Legal Counsel - Anticipated
Litigation: Pioneer Trail Waterline
Replacement Near Filter Plant
Pursuant to Government Code
Section 54956(a)lConference with
Legal Counsel - Existing Litigation:
STPUD vs. F. Heise Land & Live
Stock Company, Inc., William
Weaver, Eddie R. Snyder, Crockett
Enterprises, Inc., ClV S-02-0238
MLS JFM United States District
Court for the Eastern District of
California, Sacramento, CA
Pursuant to Government Code
Section 54956.9(a)lConference with
Legal Counsel - Existing Litigation
re: Meyers Landfill Site: United
States of America vs. El 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 Eestem District of Ca.
REGULAR BOARD MEETING MINUTES - MAY 15~ 2003 PAGE - 9
No reportable Board action
No reportable Board action
No reportable Board action.
Pursuant to Government Code
Section 54957.6(a)lConference with
Legal Counsel - Existing Litigation:
STPUD vs. Lakeside Park
Association, et al., County of El
Dorado, Superior Court Case
No. SC20010165
Pursuant to Government Code
Section 54956.6(a)/Conference with
Labor Negotiators: Agency
Negotiators - Board of Directors;
Employee Organization -
Represented and Unrepresented
Emr)lovees
Pursuant to Government Code
Section 54957/Public Employee
Employment: Position of General
Mana.qer
Moved Becket / Second Wallace / Passed Unanimously
to approve the 2003-2004 litigation budget as submitted.
2003-2004 LITIGATION BUDGET
6:25 P.M.
ADJOURNMENT
J~r~es R. Jones,/l~o)a_'rd President
St?uth Tahoe P~_p. lid Utility District
Kathy Sh~, Clerkof the/Board
South Tahoe Public Utility District