2002 11-07SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert G. Baer, General Mana• er
Richard Solbri • , Assistant Mana _ er
Duane Wallace, President
Cathie Becker Director
BOARD MEMBER
Ma Lou Mosbacher Director
James R. Jones, Vice President
Eric W. Schafer, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
NOVEMBER 7, 2002
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session, November
7, 2002, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe,
California.
BOARD OF DIRECTORS:
President Wallace, Directors Jones, and Schafer.
Director Mosbacher arrived at 2:05 P.M.
Director Becker was absent.
STAFF:
Baer, Solbrig, Sharp, McFarlane, Hoggatt, Schroeder,
Cocking, Bergsohn, Thiel, Schafer, Bird, Rondoni,
Coyner, D. Johnson, Torney, DeVee, Roderick, Norton,
Prieto, Hammond, Attorney Kvistad
GUESTS:
DeAnne Hooper, Jay Kniep, John Brissenden,
Robert Silva
ROLL CALL
Moved Schafer / Second Jones / Mosbacher and Becker CONSENT CALENDAR
Absent / Passed to approve the Consent Calendar as
submitted:
REGULAR BOARD MEETING MINUTES - NOVEMBER 7, 2002
PAGE - 2
a. Local Groundwater Assistance Grant Application for CONSENT CALENDAR
the Development of Groundwater Resources in the (continued)
Presence of Contaminant Plumes, South Lake Tahoe,
California - Adopted Resolution No. 2748 -02
authorizing the General Manager to enter into a grant
agreement with the California Department of Water
Resources in the estimated amount of $210,802;
b. Luther Pass Pump Station Tank Rehabilitation -
Approved Change Order No. 1 to Larry Bashor Sand-
blasting & Protective Coating in the amount of
$13,417.80;
c. 2002 Materials Testing and Inspection Services -
Approved amendment to Task Order No. 40 for AMEC
Earth and Environmental, Inc., in the amount of $40,000;
d. Rejected liability claim received from Al Lenzi in the
amount of $2,700;
e. Adopted Regular Board Meeting Minutes:
October 3, 2002;
f. Adopted Regular Board Meeting Minutes:
October 17, 2002.
[2:05 P.M. - Director Mosbacher arrived at this point
in the meeting.]
ITEMS FOR BOARD ACTION
Robert Silva appeared before the Board to seek relief
from the District's Administrative Code Sections 4.7.2
and 4.7.5, and Government Code 821.4, related to
sewer later pressure checks. He requested reimburse-
ment for costs incurred in the amount of $3,648.98.
District staff inspected the sewer lateral from Mr. Silva's
property line to the public main and found some defects
which may have been caused by a faulty installation in
1966. The District authorized Pederson Underground to
replace the lateral in the public- right -of -way and the
District paid for those costs. The property owner is respon-
sible for maintaining the section of sewer lateral that is
located on their private property.
REQUEST TO APPEAR BEFORE THE
BOARD: Robert Silva, 905 San Jose
Avenue, APN 26- 047 -23- 003 -01
REGULAR BOARD MEETING MINUTES - NOVEMBER 7, 2002 PAGE - 3
Mr. Silva stated as a result of this faulty installation from
the cleanout, he has incurred damages for work com-
pleted on the property which he does not feel responsible
for. He stated the pressure check program poses an
undue financial burden on homeowners and he urged the
District to reconsider how the program is administered. He
also suggested that customers be given advance
notification of this program.
Moved Jones / Second Schafer / Becker Absent / Passed
to reject the liability claim in the amount of $3,648.98.
On September 5, 2002, the Board agreed to waive
Administrative Code Section 4.3.2 to allow for the
connection of two properties owned by DeAnne Hooper
and Steve Castle, respectively, to one sewer lateral
subject to Hooper and Castle executing an agreement
with the District. Due to miscommunication with District
staff, it was originally passed by the Board that two sewer
connections be allowed to discharge into one common
sewer lateral. Staff requested the previous Board action
be amended to allow for a total of four sewer connections
into one common lateral (two connections for each, Hooper
and Castle). Using parcel maps, Lisa Coyner showed that
Hooper presently has two houses on her property that are
on holding tanks, and Castle has one house with plans to
build a second house on his property.
DeAnne Hooper and Jay Kniep were present to answer
questions from Board members.
REQUEST TO APPEAR BEFORE THE
BOARD: Robert Silva, 905 San Jose
Avenue, APN 26- 047 -23- 003 -01
(continued)
SEWER SERVICE FOR DEANNE
HOOPER AND STEVE CASTLE
Moved Schafer / Second Wallace / Becker Absent / Passed
to approve two sewer connections each for Hooper and
Castle (a total of four connections) to one common sewer
lateral, subject to the execution of an agreement between
the District, Hooper, and Castle; which is to be reviewed
by District legal counsel.
The District is eligible to purchase natural gas at whole- NATURAL GAS PURCHASE
sale prices as a "transportation customer" until the sludge AGREEMENT
incinerator is placed into standby status in approximately
six months. Once the incinerator is shut down, the District's
natural gas purchases will be too small to qualify as a
transportation customer, and gas will be purchased through
Avista Utilities at tariff rates. The District has been purchasing
through IGI Resources, Inc., for the last four years. Extending
REGULAR BOARD MEETING MINUTES - NOVEMBER 7, 2002
the contract for six more months is expected to reduce NATURAL GAS PURCHASE
cost over Avista's tariff rates. Staff has been unable to AGREEMENT
locate any other gas broker willing or able to deliver to (continued)
Tahoe.
Moved Mosbacher / Second Schafer / Becker Absent /
Passed to: (1) Authorize exception to the bidding pro-
cedures as outlined in the Purchasing Policy for Special
Circumstances /Sole Source Purchases; and (2) Approved
entering into Natural Gas Purchase and Sales Based
Contract, with IGI Resources, Inc., in an estimated
amount of $70,000.
PAGE -4
The District and County of Alpine, and the Alpine County CONSOLIDATION OF AGREEMENTS
Water Agency, entered into an agreement in 1967 with BETWEEN STPUD AND ALPINE
respect to the District's transportation, storage, distri- COUNTY
bution and application of treated effluent in Alpine County.
The agreement was amended five times between 1969
and 1989. The agreements and amendments were difficult
to track the rights and responsibilities of the parties. Further,
many of the provisions in the agreement had either been
completed and /or were no longer applicable.
As a result, the agreement and amendments were reviewed
by each party and a new agreement was developed
(consolidated agreement) which consolidates the remaining
relevant provisions, and includes new exhibits which are
based on the original exhibits that have been modified to
reflect the consolidated agreement. The consolidated
agreement does not change any of the parties rights and
responsibilities, but simply makes the agreement and
amendments easier to understand.
Hal Bird reported the Alpine County Board of Supervisors
approved this item at their November 5 meeting.
Moved Mosbacher / Second Jones / Becker Absent /
Passed to approve consolidation of the Alpine County
contract agreement and five amendments, and authorized
the Board President to execute same.
Mr. Hubert Bruns, Alpine County resident, sent a letter
to the District's Board of Directors expressing his concerns
over potential discharge of untreated sewage into the
District export pipeline by a resident in Hope Valley. A draft
response letter was presented for the Board to consider.
ALPINE COUNTY CONTRACT
REGULAR BOARD MEETING MINUTES - NOVEMBER 7, 2002
PAGE -5
Moved Mosbacher / Second Schafer / Becker Absent / ALPINE COUNTY CONTRACT
Passed to authorize Board President to execute response (continued)
letter to Mr. Bruns as presented.
John Brissenden, Sorenson's Resort, reported while Mr.
Brun's letter did not name the Hope Valley resident, by
innuendo, it most likely refers to him. He stated that the
response letter will still allow him the opportunity to work
with District staff to take advantage of the contract, which
allows for 100,000 gallons to be discharged into the export
system. He reminded the Board of his request approxi-
mately seven years ago to achieve a 10,000 gallon
allowance. He subsequently found out the expense for the
project was far too much. He now hopes to have positive
discussions with the County, Lahontan, and the District,
to develop an achievable approach.
Moved Schafer / Second Jones / Becker Absent /
Passed to approve payment in the amount of
$1,341,974.65.
Finance Committee: The committee met October 28 and
November 7. Director Schafer reported the committee
discussed CaIPERS at the October 28 meeting. The
meeting on November 7 included discussion regarding:
renewal of several insurance plans, the District's invest-
ment portfolio, pension plan audit draft, and the 2004
budget schedule.
President Wallace stated the employees are researching
the possibility of switching the District's pension plan to
the PERS program. He summarized the research that has
been done to date, and reported the employees would like
to proceed in developing a specific recommendation to
bring to the Board.
Operations Committee: The committee met November 4.
Minutes of the meeting are available upon request.
President Wallace reported on the upcoming trip he and
Dennis Cocking will make to Washington D.C. They will
attend several meetings with legislators. While there,
they hope to resolve some of the problems with the Forest
Service related to the B -line Phase 3 export pipeline
replacement project.
PAYMENT OF CLAIMS
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD MEMBER AD HOC
COMMITTEE REPORT
REGULAR BOARD MEETING MINUTES - NOVEMBER 7, 2002
PAGE-6
President Wallace did not attend the last meeting. The
ex- manager of the Water Agency is training the new
general manager; not much will be happening until the
new manager is brought up to speed.
Director Mosbacher reported on four items:
EL DORADO COUNTY WATER
AGENCY PURVEYOR
REPRESENTATIVES REPORT
1) She attended a public meeting regarding the proposed
Wilderness Bill and heard the Freel Peak study area
(which includes the whole basin) is no longer included in
the bill, but no one has proof of that. She asked President
Wallace to make inquiries during his trip to Washington,
D.C. Dennis Cocking stated that ACWA has been following
the bill and they concluded that the Freel Peak area was
excluded from the bill, but Meiss Meadows is still included.
President Wallace stated that Senator Dianne Feinstein is
objecting to the bill because it prohibits mechanical thinning
of the forests.
2) She attended Alpine County Board of Supervisor's meet-
ing on November 5 where they approved the consolidation
of agreements between the District and Alpine County.
3) She attended the Meyers Roundtable. The CHP still
plans to build a new building. They will put their fuel tanks
above ground. Groundbreaking is scheduled for May, 2003.
4) She learned from a conversation with Virginia Huber,
El Dorado County Environmental Management, that Tveten's
station will probably never sell gas again. The person who
bought it is not interested in cleaning up the site. Except for
cleanup efforts by Lahontan, not much else is likely to be
done there.
Director Jones reported he, along with Rhonda McFarlane
and Dennis Cocking, will attend the ACWA conference.
Robert Baer reported on four items: GENERAL MANAGER REPORT
1) He will be a speaker at the American Groundwater
Trust & California Bar Association Natural Resources
"legal issues program." He will discuss the District's
experience with MTBE.
2) The District Christmas party will be held December 6.
3) Bob Flynn, board director from Georgetown Divide CSD,
was defeated in this election.
4) This morning, high winds knocked a tree down onto
power lines, which caused a spark that set fire to the brush
REGULAR BOARD MEETING MINUTES - NOVEMBER 7, 2002
PAGE -7
on District property around the emergency holding pond.
The fire caused a significant amount of damage. He
circulated pictures of the damage. The fire melted the
plastic liner that covers the pond, including parts of the
liner that were buried in the ground. The District will
contact a repair company that specializes in that type of
liner to ascertain the extent of damage and repair costs.
Baer reported a tree at Glenwood Well also fell, which
destroyed the fence and power line, and fell onto the
neighboring property.
3:55 - 4:00 P.M.
5:25 P.M.
5:25 P.M.
GENERAL MANAGER REPORT
(continued)
MEETING BREAK
ADJOURNED TO CLOSED
SESSION
RECONVENED TO REGULAR
SESSION
ACTION / REPORT ON ITEM DISCUSSED DURING CLOSED SESSION
No reportable Board action.
No reportable Board action.
No reportable Board action.
Pursuant to Government Code
Section 54956.95 /Liability Claim
Received from Al Lenzini
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
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
REGULAR BOARD MEETING MINUTES - NOVEMBER 7, 2002 PAGE - 8
No reportable Board action.
No reportable Board action.
No reportable Board action.
No reportable Board action.
5:25 P.M.
ATTEST:
Kathy Shar
South Tah
Jerk of the : ?• and
ublic Utility District
Pursuant to Government Code
Section 54956.9(a) /Conference 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 Eastern District of Califomia
Pursuant to Government Code
Section 54957.6(a) /Conference 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.(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 54956.6(a) /Conference with
Labor Negotiators: Agency
Negotiators - Board of Directors;
Employee Organization -
Represented and Unrepresented
Employees
ADJOURNMENT
Dti-ekeuad,6-
Duane Wallace, Board President
South Tahoe Public Utility District
REGULAR BOARD MEETING MINUTES - NOVEMBER 7, 2002
PAGE -5
Moved Mosbacher / Second Schafer / Becker Absent / ALPINE COUNTY CONTRACT
assed to authorize Board President to execute response (continued)
letter to Mr. Bruns as presented.
John Brissenden, Sorenson's Resort, reported while Mr.
Brun's letter did not name the Hope Valley resident, by
innuendo, it most likely refers to him. He stated that the
response letter will still allow him the opportunity to work
with District staff to take advantage of the contract, which
allows for 100,000 gallons to be discharged into the export
system. He reminded the Board of his request approxi-
mately seven year ago to achieve a 10,000 gallon
allowance.
- iet: He subsequently found out the expense for the
project was far too much. He now hopes to have positive
discussions with the County, Lahontan, and the District,
to develop an achievable approach.
Moved Schafer / Second Jones / Becker Absent / PAYMENT OF CLAIMS
Passed to approve payment in the amount of
$1,341,974.65.
lance Committee: The committee met October 28 and
November 7. Director Schafer reported the committee
discussed CaIPERS at the October 28 meeting. The
meeting on November 7 included discussion regarding:
renewal of several insurance plans, the District's invest-
ment portfolio, pension plan audit draft, and the 2004
budget schedule.
President Wallace stated the employees are researching
the possibility of switching the District's pension plan to
the PERS program. He summarized the research that has
been done to date, and reported the employees would like
to proceed in developing a specific recommendation to
bring to the Board.
Operations Committee: The committee met November 4.
Minutes of the meeting are available upon request.
President Wallace reported on the upcoming trip he and
Dennis Cocking will make to Washington D.C. They will
attend several meetings with legislators. While there,
they hope to resolve some of the problems with the Forest
vice related to the B -line Phase 3 export pipeline
replacement project.
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD MEMBER AD HOC
COMMITTEE REPORT
w
0
0
z
1-
w
2
co
0
U
w
cc
0
Q
0
m
w
z
1-
0
}
cc
Z
J
O
fn • w
O D
QZ
• w
0<
wa
• O
U w
H O
O • p
z
O_O
~w
w
as
0
U ~
O
U Z
U)
Q —
Z
0
m• re
wF2
1<
I-
HQ
w 0
U Z
cc
O
U
U
Z
C
k
V"
17-0 .11* 6245t/