2004 04-15SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Richard Solbd~, General Manager Paul Sciuto, Assistant Mana~ler
James R. Jones, President BOARD MEMBERS Eric W. Schafer, Vice President
Duane Wallace, Director Mary Lou Mosbacher, Director Tom Comte, Director
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REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
APRIL 15, 2004
M I N ,U T E .S.
The Board of Directors of the South Tahoe Public Utility District met in a regular session, April 15,
2004, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe,
California.
BOARD OF DIRECTORS:
President Jones, Directors Wallace, Comte, Mosbacher.
Director Schafer attended from 2:00 - 2:30 p.m.
ROLL CALL
STAFF:
Solbdg, Sharp, McFarlane, Sciuto, Adams, Coyner,
Eckenrode, Bergsohn, Hoggatt, Attorney Kvistad.
GUESTS:
Dave Galicia / G.B. Inc., Ken Lucia, Glenn Plaskett,
Jake Jacobs I Jacobs Enterprises, Dale Rise / Dale
Rise Excavations, Ray Olsen / X-Rays Snow Removal
and Ent., Ole Olson, Dan Huggins, James Brathovde,
Dave Huber / Huber Plumbing.
Consent Item a. (Bayview, Helen, and South Upper
Truckee Well Drilling Projects), and Consent Item b.
(Sewer Lateral Air Testing) were brought forward for
discussion prior to Board action.
CORRECTIONS TO THE AGENDA
OR CONSENT CALENDAR
Moved Comte I Second Schafer I Passed Unanimous!¥
to approve the Consent Calendar as amended:
CONSENT CALENDAR
"'kEGULAR BOARD MEETING MiNuTES ...................... - APRIl. 15, 2004 , PAGE - 2
a. See Consent Items Brought Forward;
b. See Consent Items Brought Forward;
CON~ENT CALENDAR
(continued)
B-line: Phase 3 - Export Pipeline Replacement -
Authorized entering into a three-party agreement
with TRPA and Entrix, in an amount not to exceed
$85,000, to satisfy a TRPA permit requirement to
hire an environmental inspection service to oversee
the project's environmental management (subject to
final approval by staff, provided the terms do not
significantly change from the draft presented);
d. Approved Regular Board Meeting Minutes:
March 18, 2004.
ITEMS FOR BOARD ACTION
In order to proceed with the May 5, 2004, sale of sewer
revenue certificates, it is necessary to adopt an authorizing
resolution.
RESOLUTION NO. 2784-04:
SEWER INFRASTRUCTURE
FINANCING
Bill Madison, bond counsel, reviewed the various docu-
ments associated with the $15 million borrowing, and
answered questions from the Board. Reed Schmidt,
financial advisor, explained the interest rates in the
bond markets, and also answered questions from Board
members.
The Finance Committee reviewed this item and
recommended approval.
Moved Wallace./,Second Schafer I Passed Unanimously
to adopt Resolution No. 2784-04, authorizing the issuance
and sale of sewer revenue certificates to provide financing
for sewer system improvements and the signing of the
related documents.
Rhonda McFadane stated the intent of this resolution is to
formalize the District's reserve policy and to establish a
rate stabilization fund to buffer any significant changes in
revenue. Using the rate stabilization fund allows the Board
to gradually change rates in the event of a revenue loss,
thereby avoiding sudden changes in rates.
RESOLUTION NO. 2785-04:
RESERVE POLICY
The Finance Committee reviewed this item and
recommended approval.
' REGULAR BOARD MEETING MINUTES -APRIL 15, 2004 ' PAGE - 3
Moved Schafer I Secon. d. Wa!la.~.l Pa.s. sed Unanimously
to adopt Resolution No. 2785-04, to formally establish a
reserve policy.
RESOLUTION NO. 2785-04:
RESERVE POLICY
(continued)
(2:30 p.m. - Director Schafer excused himself from the
remainder of the meeting.)
CONSENT ITEMS BRouGHT FORWARD FOR DISCUSSION I ACTION
District staff held a public meeting in early March to
discuss current and proposed Administrative Code
changes related to sewer laterals. The Board of Directors
formed a Sewer Lateral Ad Hoc Committee and through
extensive discussion with contractors, customers, and
staff, the proposed amendments were brought about. The
main recommendation is for air testing for a period of
seven years. Other amendments were made in an effort
to clarify any confusing language in the code. Lisa Coyner
reviewed the specific changes to the ordinance.
ORDINANCE NO. 488-04:
SEWER LATE, PAL AIR TESTING
(Consent Item b.)
Dave Galicia, Ken Lucia, Dale Rise, Dave Huber, Cie
Olson, Ray Olsen, Don Huggins, and James Brathovde,
expressed their concerns with the definition of lateral
ownership and maintenance.
It was the consensus of the Board to table this issue
until after the building season.
No Board action.
4:25 - 4:35 P.M.
MEETING BREAK
4:35 P.M.
ADJOURNED TO CLOSED
SESSION
5:35 P.M.
SESSi0N
(5:35 p.m. -Attorney Kvistad excused himself from the
remainder of the meeting.)
' ACTION I REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION
RECONVENED TO REGULAR
No reportable Board action.
Pursuant to Government Code
Section 54956.9(c)/Conference with
Legal Counsel- Anticipated Litigation:
Pioneer Trail Waterline Replacement
Near Filter Plant
REGULAR BOARD MEETING "MiNuI:E$ - APRIL '15, 2004 ' ' PAGE- 4
No reportable Board action.
Pursuant to Government Code
Section 54956(a)/Conference with
Legal Counsel- Existing Litigation:
STPUD vs. ARCO et. al., San
Francisco County Superior Court
Case No. 999128
No reportable. Board action.
Pursuant to Government Code
Section 54956(a)lConference with
Legal Counsel - Existing Litigation:
STPUD vs. 1442.92 Acres of Land
in Alpine County, California; et al.,
United States Distdct Court for the
Eastern District of Ca., Sacramento
Division, Case No. CIV S-02-0238
MCE JFM
No reportable Board action.
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 Ca.
No reportable Board action.
Pursuant to Government Code
Section 54957.6(a)/Conference with
Legal Counsel - Existing Litigation:
STPUD vs. Lakeside Park Assoc.,
et al., County of El Dorado, Superior
Court Case No. SC20010165
ITEMS FOR BOARD AcTioN '
Jim Hoggatt reported two bids were received for this
project at the April 13, 2004, bid opening.
Moved Mosbacher I Second Comte / ~chafer Absent I
Passed to award the contract to the lowest responsive,
responsible bidder, Zim Industries, Inc., in the amount
of $938,196.
BAYVlEW, HELEN, AND SOUTH
UPPER TRUCKEE WELLS
DRILLING pROJECTS
Jim Hoggatt reported three bids were received for this
project at the April 14, 2004, bid opening.
HIGHWAY 50 2004 WATERLINE
REPLACEMENT PROJECT
' REG~ILAR BO/I~ MEETING MINUTE8 APRIL t5'2004 ........... PAGE
Moved Wallace I Second Gomte I Sch. ~fer Absent, I
Passed to award the contract to the lowest responsive,
responsible bidder, Nicholas Construction, in the amount
of $1,354,558.85.
HIGHWAY 50 2004 WATERLINE
REPLACEMENT PROJECT
(continued)
Jim Hoggatt reported four RFQs (Request for Qualifica-
tions) were received for a materials and testing inspection
services technician. Staff recommended retaining Mike
Magee, Stantec, due to Mr. Magee's familiarity with the
District's process and his knowledge of the testing re-
quirements; additionally, his was the lowest proposal
received.
MATERIALS TESTING AND
CONSTRUCTION INSPECTION
SERVlCE~ ....
Moved Wallace / Second Comte I $chafer Absent I
Pas~cl to approve staff recommendation to retain Mike
Magee, Stantec, for additional inspection and testing
services for the 2004 construction season in the amount
of $175,000.
M0yed Wallace I Second Mosbach~. I $chafer Abse~ / PAYMENT OF CLAIMS
Passed to approve payment in the amount of $785,878.56.
ITEMS BRouGHT FORWARD' ' FOR' ' DISCUSSION"" "1 ACTION' ' ...........
CONSENT
Director Mosbacher received clarification from Jim Hoggatt
regarding the need for additional hydro-geologic personnel.
Moved Comte / Second Wallace I Schafer Absent / Passed
to approve proposal from Nimbus Engineers in the amount
of $186,854.
BAYVlEW, HELEN, AND SOUTH
UPPER TRUCKEE WELLS
DRILLING pROJECTS ..
(Consent Item a.)
Water and Wastewater Operations Qommittee: The
committee met April 12. Minutes of the meeting are
available upon request.
Director Wallace reported on the County Water Agency's
activities:
1) They belong to a JPA that provides authority the agency
doesn't have.
2) Last year's goals were reviewed; substantial progress
was made. The agency runs better than it has in years.
3) They are waiting for El Dorado County to approve a
general plan.
4) The agency will meet in South Lake Tahoe in August.
President Jones reported he received a letter from
Lakeside Park Association requesting a board committee
be appointed to discuss matters of mutual interest. He
BOARD MEMBER STANDING
COMMITTEE REPORTS
EL DORADO COUNTY WATER
AGENCY REPRESENTATIVE
REPORT
BOARD MEMBER REPORTS
2004 ................ PA~E
REGULAR BOARD MEE'nNG MINUTES - APRIL 16, . $
will send a letter stating once the ongoing litigation has
been resolved, he will consider appointing a liaison to
Lakeside Park.
BOARD MEMBER REPORTS
(continued)
General Mana,_qer: Richard Solbrig updated the Board
on four items:
1 ) The permits for the B-line Phase 3 pipeline relocation
project are imminent.
2) An agreement will be developed outlining responsibilities
related to Sorenson's discharge request.
3) The grant funding bill Assemblyman Tim Leslie is
sponsoring on behalf of the District has received approval
from the California Tahoe Conservancy's legal counsel.
Legislators have received it and had no comments.
4) A letter of opposition was sent regarding Ortiz bill
SB 1272 (in its current form). Suggestions were made how
the bill could be improved.
GENERAL MANAGER / STAFF
REPORTS. .
Assistant Manager: Paul Sciuto reported on two items:
1 ) $1.2 million has been spent to date on the Bakersfield
Well treatment system and associated costs (emergency
declared 1/2/04). The well should be on-line by June 15
and completed by June 20. A public meeting was held to
gather input and concerns from nearby residents.
2) Too much dirt was disturbed when demolishing the
digesters at the WWTP, which will likely result in a fine
from TRPA.
Chief Financial .~cer: Rhonda McFarlane reported that
based on change orders approved at a previous board
meeting, the budget must be revised to reflect an additional
$1.3 million that was not included in the budget workshop
presentation.
6:20 P.M.
ADJOURNMEN,T
ATTEST:
Kathy; Sharp, C~,~ of t-he BOard'
South Tahoe Pablic Utility District
DATE:
BOARD OF DIRECTORS MEETING
GUEST SIGN-IN SHEET
IN ACCORDANCE WITH THE BROWN ACT: COMPLETION OF THIS INFORMATION IS VOLUNTARY,
NOT MANDATORY, AND IS NOT A PRECONDITION FOR ATTENDANCE.
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