2003 07-17SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
James R. Jones, President
BOARD MEMBERS
Mary Lou Mosbacher, Director
Eric W. Schafer, Vice President
Tom Comte, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
JULY 17, 2003
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
July 17, 2003, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake
Tahoe, California.
BOARD OF DIRECTORS:
President Jones, Directors Schafer, Comte,
Mosbacher. Director Wallace was absent.
ROLL CALL
STAFF:
Solbrig,' Sharp, McFarlane, Coyner, Cocking, Frye, Thiel,
Hydrick, Hoggatt, R. Johnson, Rondoni, Attorney Kvistad
Rob Brueck/Parsons, Danel Kikkert/EI Dorado County,
Dan SussmannlLeague to Save Lake Tahoe, Brad Vidro/
City of South Lake Tahoe, Erika LovejoylLahontan
Staff requested Consent Item j. (Regular Board Meeting
Minutes: June 19, 2003) be removed from the agenda.
They will be placed on a future agenda for Board approval.
Moved Comte / Second Schafer / Wallace Absent I Passed
to approve the Consent Calendar as amended:
CORRECTIONS TO THE AGENDA
OR CONSENT CALENDAR
CONSENT CALENDAR..
REGULAR BOARD MEETING MINU'i~..s - JULY 17, 2003
Underground Repair/Water: Temporary Help -
Approved increase to Purchase Order Nos. P13727
and P13728 to Substitute Personnel and Business
Services in an estimated amount of $15,000 each;
CONSENT CALENDAR
(continued)
PAGE -. 2'
Tort Claims - Approved title change for Tort Claim
Form from "Claim for Personal Injuries" to "Tort Claim
for Money or Damages;
Computer Purchases - Authorized purchase of budgeted
computers in an amount not to exceed $66,700 (including
tax);
Flagpole and Elks Club Well Building and Mechanical
Controls Project - Authorized staff to enter into an
agreement with DTN Engineers, Inc., for electrical and
control system design services in an estimated amount
of $27,98O;
so
Flagpole and Elks Club Well Buildings - Authorized staff
to advertise for bids for well building construction, including
underground piping, and mechanical and electrical control
systems;
Pioneer Trail Waterline - Authorized staff to advertise for
bids to replace a section of damaged line;
Pre-tax Payroll Deduction for Service Credit Purchases to
CalPERS - Adopted Resolution allowing employees to buy-
back prior service credit from CalPERS on a pre-tax basis;
h. Adopted Regular Board Meeting Minutes:
June 5, 2003;
i. Adopted Special Board Meeting Minutes:
June 16, 2003;
j. Item Removed from the Agenda;
k. Adopted Regular Board Meeting Minutes:
July 3, 2003.
ITEMS ~'R' BOARD ACTION
Director Mosbacher disqualified herself from participation B-LINE: PHASE 3 EXPORT
in this item per a previously disclosed potential conflict of PIPELINE REPLACEMENT
~ETING MINUTES -~7, 2003
interest. She did not read the material associated with
this agenda item, and she left the room while it was
being discussed and vote on.
Using a computerized slide presentation, Richard Solbdg
covered: the project background, 1995 photos of the
B-line pipeline, and construction methods. Rob Brueck
covered: project alternatives, environmental impacts that
were studied in the EIR, comments received on the draft
EIR/EIS, and key changes to the draft EIR/EIS. Brueck
concluded by recommending Alternative E as the route for
the B-line pipeline.
Dan Sussmann, League to Save Lake Tahoe, stated the
final EIR/EIS was inadequate. Rob Brueck responded to
concerns raised by Sussmann.
Moved Comte I Second Schafer I Mosbacher Abstained I
Wallace Absent / Passed to adopt Resolution No. 2770-03,
certifying the Final EIR/EIS (Environmental Impact Report I
Environmental Impact Statement) for the B-Line: Phase 3
export pipeline replacement project.
Richard Solbrig reported representatives of the District
and the City of South Lake Tahoe have been negotiating
terms of a property exchange for several months. The
Distdct would like to grant the City a portion of the access
road from Al Tahoe Boulevard from the entrance to the
parking lot for the ballfields to the point the road passes
onto California Tahoe Conservancy property. A total of
1.75 acres would be granted. The Distdct would also
grant the City a small corner parcel at the foot of High
School Road. In return, the City would grant to the Distdct
two parcels immediately to the west of the wastewater
treatment plant (the Meadow Crest Ddve road parcels).
The City Council has already voted in favor of this exchange
and to proceed with execution of agreement subject to approval
of final terms by the City Attorney and City Manager.
District Legal Counsel prepared a Resolution of Intention
that will: fix a time for headng protests to the exchange,
provide for publication of the Notice of Hearing, fix the time
final action will be taken, and contain an accurate des-
cription of the properties.
"'----- PAGE-3
B-LINE: PHASE 3 EXPORT
PIPELINE REPLACEMENT
(continued)
MEADOW CREST DRIVE
ACQUISITION
PAGE - 4
REGULAR B-"~'-~'D MEETING MINUTES ~ JULY t7, 2003
~r I Wallace Absent I Passed
to approve Resolution of Intention to grant access road
and small parcel to the City of South Lake Tahoe (City) in
exchange for the City granting two Meadow Crest Ddve
road parcels to the District.
Rhonda McFarlane reported it is in the District's best
interest to retain a professional advisor to manage the
District's reserve funds. By joining the California Asset
Management Program (CAMP), the Distdct can retain an
outstanding investment advisory firm at a reduced rate.
Staff believes the services provided by PFM Asset Manage-
ment (CAMP's investment advisor) will yield the District
earnings in excess of the professional fees incurred and
will outsource finance staff workload freeing them up for
other responsibilities. Finance staff interviewed three
investment advisors prior to recommending CAMPIPFM.
The Finance Committee recommended approval of this
item.
David Baccile, PFM, participated by telephone. He reviewed
provisions of the contract.
Moved Schafer I Second Comte I Wallace Absent I Passed
to adopt Resolution to join CAMP and authorize the Board
President to execute agreement with CAMP's program invest-
ment advisor, PFM Asset Management, LLC, to provide
investment advisor services.
Ross Johnson reported that the dangers and inherent risks
of using elemental chlodne for disinfection is increasing for
the District. The LTCC expansion and STAR ballfields pro-
ject are putting more public lives in the impact zone (up to
seven miles) of even moderate size chlorine leaks. He dis-
ributed two handouts illustrating the areas the gas plume
would cover if chlorine was released. New regulations were
put in place by OSHA, including one that requires three
people who handle chlodne be on duty 24 hours per day.
Staff recommends conversion to hypochlorite disinfection.
While using hypochlorite would mean three to five times
higher operation and maintenance costs, the offsite risks
can be reduced to nearly zero by this conversion. Other
disinfection methods were considered and subsequently
rejected based on infedor cost effectiveness and/or poor
reliability. The costs of this conversion would be covered
in the District's five-year financial plan.
MEADOW CREST DRIVE
ACQUISITION
(continued)
CALIFORNIA ASSET MANAGE-
MENT PROGRAM (CAMP) /
INVESTMENT ADVISORS
CONVERSION FROM ELEMENTAL
CHLORINE TO HYPOCHLORITE
DISINFECTION
REGULAR BOARD MEETING MINUTES - JULY 17, 2003
PAGE - 5
Moved Comte / Second Mosbacher I Wallace Absent /
Passed to direct staff to proceed with conversion
from elemental chlorine to hypochlorite disinfection.
Jim Hoggatt reported four bids were received at the
at the July 15 bid opening. Hoggatt also reviewed a
minor discrepancy related to the Iow bid - the total
bid amount differed by $2,000 from what was written
out in words.
Moved Mosbacher / Second Comte I Wallace Absent ./.
Passed to waive the minor bid irregularity described
above and award contract to the lowest responsive,
responsible bidder, K.G. Walters, in the amount of
$1,376,356.
Moved Mosbacher I Second Comte I Wallace Absent/
Passed to approve payment in the amount of
$1,505,649.49.
Finance Committee:. The committee met July 15.
Minutes of the meeting are available upon request.
Water and Wastewater Operations Committee: The
committee met July 14. Minutes of the meeti~ are
available upon request.
Senior Enaineer:. John Thiel distributed a sketch of
the plant site. Using an overhead version of the
sketch, he reviewed elements of the plans for the
administrative building construction. Remodeling
the existing building would cost more than new
construction. Two buildings are proposed due to
differing construction requirements for each building.
Construction would commence May 2004, and be
completed by March 2005.
Director Mosbacher. stated she attended the Meyers
Roundtable Meeting on July 16. The BBQ trailer that
is operating in Meyers is a concern since no one knows
where they are getting water and sewer service from.
Staff will look into this.
General Manaaer: Richard Solbrig reported on two
items:
CONVERSION FROM ELEMENTAL
CHLORINE TO HYPOCHLORITE
DISINFECTION
(continued)
CORNELIAN BOOSTER STATION
AND GARDNER MOUNTAIN PUMP
STATION
PAYMENT OF CLAIMS
BOARD MEMBER STANDING
COMMI'I-I'EE REPORTS
STAFF REPORT..
BOARD MEMBER REPORTS
GENERAL MANAGER REPORT.
REGULAR BOARD MEETING MINUTES - JULY 17, 2003
1) The City is considering landscaping linear park
and calculated the water connection fee would cost
$80,000. It is expected the City will request that the
District waive these connection fees based on the
fact that they consider the linear park to be an actual
park. When the future connections plan was done in
1996, water service for recreation was included as a
mitigiation measure, but excluded water that would
be used for irrigation.
2) He reported on the wastewater flows during the
4th-of-July holiday period.
Mana,qer of Water Operations: Rick Hydrick reported
On water usage during the 4th-of-July holiday. He
distributed handouts illustrating Stateline and Arrowhead
tank levels and how they compared with historic use.
GENERAL MANAGER REPORT
(continued)
STAFF REPORTS
Customer Service Mana~ler: Lisa Coyner reported on
the backlog of work in the Inspections Department.
District Information Officer:. Dennis Cocking reported
on two items:
1 ) The Dsitrict's water conservation efforts. Three
water educators are now on staff.
2) A private citizen is making claims, via radio ads
and posters, that the District's water is contaminated
with MTBE and is encouraging anyone who has been
sick or has cancer to attend a "town meeting" in Tahoe
Paradise. Cocking attended the meeting and provided
factual information to the few people who attended.
5:05 - 5:15 P.M.
5:15 P.M.
MEETING BREAK
ADJOURNED TO CLOSED
SESSION
5:55 P.M.
RECONVENED TO REGULAR
SESSl0N
No reportable Board.action.
Section 54956.9(c)/Conference with
Legal Counsel - Anticipated
Litigation: Pioneer Trail Waterline
Replacement Near Filter Plant
PAGE - 7
REGULAR BOARD MEETING MINUTES -JULY 17, 2003
No reportable Board action
Pursuant to Government Code
Section 54956.(a)lConfersnce with
Legal Counsel - Existing Litigation:
STPUD vs. John Breese Mumford,
et al., El Dorado County Superior
Court Case No. SC20020030
No reportable Board action
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., 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)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 Eastern District of Ca.
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
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. 999128
PAGE - 8
17, 2003
ADJOURNMENT
5:55 P.M.
Jar~es R. J~)nes,/B/6ard President
S/uth Tahoe PU];)iic Utility District
l~athy Sharp, ~erK o
South Tahoe Public Utility Distdct
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