Exhibit # E-1 8 pages SQUAW VALLEY PUBLIC SERVICE DISTRICT BOARD OF DIRECTORS REGULAR MEETING MINUTES #785 February 25, 2014 A. Call to Order, Roll Call and Pledge of Allegiance. President Dale Cox called the meeting to order at 8:30 A.M. Directors Present: Dale Cox, President; Eric Poulsen, Vice President; Directors: Carl Gustafson; Brian Sheehan; and John Wilcox. Staff Present: Mike Geary, General Manager; Kathryn Obayashi-Bartsch, Board Secretary; Aleta Drake, Controller/Network Administrator; Jesse McGraw, Operations Manager; Peter Bansen, Fire Chief; Brandon Burks, Operations Specialist III; Thomas Archer, District Counsel; Dave Hunt, Consultant. Others Present: Judy Carini, Patty Hecht, Bruce Hutchinson, Steve Kasten, Andrew Lange, Tom Rinne, Peter Schweitzer and Peter VanZant. President Cox asked Steve Kasten to lead the Pledge of Allegiance. B. Community Informational Items. B-1 Friends of Squaw Creek none B-2 Friends of Squaw Valley Peter Sweitzer asked the District place the District s acquisition of the Stables property at 1525 Squaw Valley Road (APN 096-060-049) and use of the property as a public park on a future agenda item for discussion. He said the Development Review Committee meets on Thursday, March 6, 2014 at 4 P.M. in the District s community room. B-3 Squaw Valley Municipal Advisory Committee (SVMAC) Brian Sheehan said the next SVMAC meeting is scheduled for Thursday, March 6, 2014 at 6 P.M. in the District s community room. B-4 Squaw Valley Mutual Water Company (SVMWC) none B-5 Squaw Valley Ski Holdings none B-6 Squaw Valley Property Owners Association none B-7 Tahoe-Truckee Sanitation Agency Dale Cox provided an update on the following items: Truckee River Interceptor Pipe Condition Assessment including the status of the pipe near River Ranch which will require considerable repair. Mike Geary said District staff participated in a presentation by T-TSA staff on Digital Scanning technology which is a considerable improvement to assess sewer pipe condition relative to standard Closed Caption Television (CCTV) technology. Dale Cox said a new digester is needed to address foaming at the plant. B-8 Incorporate Olympic Valley Peter Sweitzer said the group raised nearly $90,000 and will have a public meeting on March 4, 2014 at 7 P.M. in the District s community room. He said Placer County released the revised Notice of Preparation for the Village at Squaw project. The Request for Proposals for a comprehensive fiscal analysis was issued and a contract may be awarded at the April Placer County Local Area Formation Commission meeting. C. Public Comment/Presentation. Judy Carini requested the Board investigate the feasibility of purchasing the property commonly referred to as the Stables property for possible development of a community amenity. Andrew Lange said he concurs with Ms. Carini s request. Dale Cox said he supports Ms. Carini s request and believes that the District should assess the feasibility of acquiring the property for the benefit of the community.
Mr. Geary said Ed Heneveld submitted written comments as he is unable to attend today s meeting. A copy of the comments was provided to all Directors and staff. Mr. Heneveld requests the Board discuss the possible purchase of the property commonly referred to as the Stables property for possible development of an open-space, recreational amenity there. He requests this item be placed on the April agenda for discussion and possible action. The Board directed staff put this item on the March Board of Director s meeting agenda. Mr. Archer said that Exhibit F-7 will not be reviewed today as this item is not ready. D. Financial Consent Agenda Items. Director Sheehan met with staff on Monday, February 24, 2014 from approximately 4-5 P.M. to review items D-1 through D-9 as well as other finance related items on this agenda. Director Sheehan said he and Director Poulsen reviewed the finance related items with staff and all items appear to be in order. The District is 58% through the fiscal year, expenditures are running at approximately 46%, which leaves a positive margin of 4%. A motion to approve the financial consent agenda was made by Directors Sheehan/Wilcox as submitted; vote was unanimous. Cox-yes Poulsen-yes Gustafson-yes Sheehan-yes Wilcox-yes E. Approve Minutes. E-1 Minutes for January 28, 2014. Director Poulsen suggested the following revisions (deletions are in strikeout and additions are underlined): Page 6: Director Poulsen does not support purchase of the equipment with an internal loan and believes the program should continue to operate in the current manner. While he supports the project, he does not support borrowing funds from the sewer fund as this project was to be provided at no cost or liability to the District. Page 8: Director Poulsen commended staff for catching the water leak on Well #3 Well #1R. A motion to approve the minutes for January 28, 2014 with the proposed revisions was made by Directors Wilcox/Gustafson vote was unanimous. Cox-yes Poulsen-yes Gustafson-yes Sheehan-yes Wilcox-yes SVPSD Board Minutes-February 25, 2014 Page 2 of 8
F. Old & New Business. F-1 Village at Squaw Project Update. Director Poulsen left the room due to a conflict of interest from an ownership interest. He did not listen to the discussion through a one way audio feed. The Board reviewed the information, discussed the project and accepted public comment. Mr. Geary said Squaw Valley Real Estate (SVRE) released the revised Specific Plan in early January and staff is reviewing the document. Placer County will release a Notice of Preparation for the revisions and staff will prepare comments. Water Mr. Geary said staff and District consultants commenced review of the water demands proposed by SVRE for the revised project in preparation of the Water Supply Assessment (WSA) pursuant to Senate Bill 610. Fire / EMS There is no new information to report since last month's Board Meeting. Sewer Mr. Geary said staff and District consultants commenced review of the wastewater generation rates proposed by Squaw Valley Real Estate (SVRE) for the revised project. Director Gustafson asked about the WSA schedule and how the Redundant Water Supply Preferred Alternative Evaluation is related. Mr. Geary said preparation of the WSA is based on the developer s schedule. According to SB 610, the District may not meet the definition of a Public Water System for purposes of approving the WSA. Placer County will likely be the entity which approves the WSA. He hopes the WSA may be completed by April or May but the schedule is driven by the developer. The Redundant Water Supply Preferred Alternative Evaluation Project aims to identify a feasible source of water supply available to the District for the benefit of source redundancy, for existing and future customers. Public Comment Peter VanZant asked for clarification of the WSA process. Mr. Archer said the WSA will be prepared by the District and funded by SVRE. Since the District may not meet the criteria of a Public Water System to approve the WSA, the WSA will be provided to the District for information only. It will be provided to Placer County for approval and is a foundational element in the California Environmental Quality Act (CEQA) process and Environmental Impact Report (EIR). F-2 Budget Preparation Schedule. The Board reviewed the item, accepted public comment, approved the schedule as proposed. Director Poulsen returned to the room and Ms. Drake provided a review of the item. SVPSD Board Minutes-February 25, 2014 Page 3 of 8
The schedule as proposed was approved unanimously. Cox-yes Poulsen-yes Gustafson-yes Sheehan-yes Wilcox-yes F-3 Fire Annual Report. The Board reviewed the item and accepted public comment. Chief Bansen introduced Michael Sacci as a full time member of the Fire Department and provided a review of the report. He said the 12 lead cardiac monitor update was actually 90% grant funded not 50% grant funded. President Cox commended staff for their work. F-4 Redundant Water Supply - Preferred Alternative Evaluation; Phase I: Water Supply Feasibility Summary and Gap Analysis. The Board reviewed the item and accepted public comment. Mr. Geary and Dave Hunt (Farr West Engineering) provided a project update with a PowerPoint presentation (see Attachment A). The project includes three phases to be performed by Farr West Engineering for $225,000. The Board authorized staff to enter into a Funding Agreement with the State of California s Department of Water Resources (DWR) as part of the Local Groundwater Assistance Grant Program for the same amount to reimburse the District for the evaluation. The Redundant Water Supply / Preferred Alternative Evaluation is composed of three phases and is scheduled for completion in December, 2014. The phases are: 1. Phase I: Water Supply Feasibility Summary and Gap Analysis 2. Phase II: Evaluation of Water Supply Source(s) from Phase I Gap Analyses 3. Phase III: Preferred Alternative Evaluation The development of a reliable water supply was identified as the District s number one goal in many of its long term Strategic Plans, including the current Plan. The Water & Sewer Committee and the Board of Directors in October, 2013 directed staff to summarize and communicate the results of prior investigations and evaluations of water supply sources in and outside of the Olympic Valley watershed and to evaluate any gaps in these prior investigations to assess feasibility of each potential source. This revised and expanded evaluation demonstrates the District s efforts investigating local sources and an environmentally sustainable approach to provide reliable and redundant water supply to its customers and visitors. The DWR grant will reimburse expenses incurred by the District to perform the evaluation up to $225,000. The contract with Farr West Engineering is estimated to cost the same. Internal expenses for staff to participate in the preparation of the evaluation and administer both the consultant and DWR SVPSD Board Minutes-February 25, 2014 Page 4 of 8
grant contract were budgeted in the 2013 14 Capital Budget for $50,000 and are expected to be much less. Mr. Hunt provided a review of the technical memorandum prepared for Phase I. The purpose of this phase of the project is to review and summarize the water supply investigations performed by the District and others in past evaluations of local water sources. The Phase I technical memorandum summarizes this work and presents the purpose, findings, and conclusions of these previous water supply investigations. Phase I also identifies gaps in evaluations of other potential local water sources. These gaps will be addressed and further evaluated in Phase II of the project. He also reviewed the definitions of redundant water supply and supplemental water supply. Identifying redundant water supply sources is the focus of the project Mr. Hunt reviewed the areas which he recommends additional investigation. This investigation will comprise Phase II of the project. Director Wilcox said the Water and Sewer Committee met and discussed the item. The idea of bringing water from Martis Valley to Squaw Valley is controversial and expensive. Investigation of local water sources will be exhausted in Phase II before investigating another source in Phase III such as Martis Valley. Director Poulsen suggested additional items to be addressed include water treatment and wells in the eastern portion of the aquifer. He agreed with Director Wilcox s comments. Director Sheehan commented on the importance of maintaining water quality. Director Gustafson agreed with Director Sheehan s comments and supports Phase I and II. He suggested areas for further investigation include the debris area between Red Dog and K-T and the Gold Coast Pond area. President Cox suggested surface water retention to enhance the current water system should be investigated. People should be aware that there are many water conveyance projects across the state and infrastructure is already in place from Martis Valley to the Mousehole. There are many significant benefits of a utility corridor between Truckee and Squaw Valley including fiber optic communications and the transmission of natural gas, not just the development of a redundant water supply source for Squaw Valley and residents along the Truckee River. Public Comment Peter VanZant asked who would bear the financial burden of such a conveyance project. Mr. Geary said the sources of project funding is unknown at this time but will likely include partnerships with businesses, agencies and grants. It is uncertain how much of the burden will fall on development and existing customers. Such a project is subject to the CEQA process. Mr. VanZant asked if the District is not considered a water district under SB610, would the District be the applicant for any system changes. Mr. Geary said the District would be the applicant. Andrew Lange said redundant as a descriptor should not be used because it conveys the meaning that it is unnecessary. He asked about pumping from the eastern aquifer and impacts to Squaw Creek. Mr. Geary said further pumping from new wells may impact the water level in that area and may have an impact on the wetlands in that area. SVPSD Board Minutes-February 25, 2014 Page 5 of 8
Mr. Geary reviewed Ed Heneveld s written comments on the Technical Memorandum which were provided to the full Board and to Mr. Hunt. It appears that most of the concerns will be addressed in either Phase I or Phase II. F-5 Water System Intertie with Squaw Valley Mutual Water Company (SVMWC). The Board reviewed the item, accepted public comment, authorized staff to execute an agreement with Shaw Engineering for $19,750 for an intertie design proposal and authorized spending $5,000 from the capital fund. Mr. McGraw provided a review of the item. He said the District applied for a grant for the same project from PCWA s Financial Assistance Program (FAP) in 2012 and was awarded $10,000 for a $35,000 design proposed by Farr West Engineering. That design included a hydraulic analysis to guide recommendations for improvements to interconnect the two systems for both existing conditions and future conditions (considering proposed development), along with planning level cost estimates. The District proposed a cost-share agreement with the Mutual Water Company to cover the remaining cost of the design ($25,000) and they opted to pursue a less expensive alternative to construct a single system intertie with a smaller scope of hydraulic analyses. The new proposal to design a single-vault intertie, without a hydraulic analysis of the two distribution systems, from Shaw Engineering is for $19,750. The proposal s scope includes surveying, hydraulic analysis to select the pump, electrical engineering, bid-ready plans and specifications, and a cost estimate. The current planning-level cost estimate for design and construction is $100,000. Any funds awarded as a result of the 2014 FAP application will be combined with the $10,000 awarded by PCWA in 2012, with remaining costs to be paid for by the two water agencies through a cost-share agreement. President Cox said the SVMWC has not been supportive of the District s efforts in the past and has some reservations. Director Wilcox supports the intertie project. Mr. Archer said although Directors Cox and Poulsen are members of the SVMWC, he does not believe there is a conflict of interest which need be disclosed, or that either Director Cox or Poulsen be required to refrain from participation in the approval of this item. Further, this item is only a design proposal, not a construction project. Director Sheehan asked how much the construction of the intertie will cost. Mr. McGraw said approximately $80,000 to $100,000. Director Sheehan expressed concern that the SVMWC will not support the construction of the project. Director Gustafson expressed concerns with SVMWC s participation in funding the construction of the improvements. Public Comment Mr. Hutchinson asked if the SVMWC completed their pipeline project and expressed concern with the condition of their system. Mr. Geary estimated that 50% of their distribution system has been replaced. SVPSD Board Minutes-February 25, 2014 Page 6 of 8
A motion to authorize staff to execute an agreement with Shaw Engineering for $19,750 and authorize amendment of $5,000 from the capital fund was made by Directors Sheehan/Wilcox; vote passed 3 to 2. Cox-no Poulsen-yes Gustafson-no Sheehan-yes Wilcox-yes F-6 Vehicle Purchase. The Board reviewed the item, accepted public comment and approved purchase of a 2015 Dodge Ram 2500 Crew Cab 4 x 4 pickup truck. Mr. McGraw provided a review of the item. He said the District budgeted for the replacement of the 2003 Ford F-250 Service Truck in the 2013-2014 Capital Budget. An evaluation of the age and repair history of this vehicle placed it on the top of the list for replacement. In evaluating the needs of the Utility Department, staff prefers to replace the truck with a 4x4 Crew Cab type vehicle which will serve in the dual capacity of providing both a work vehicle and crew transportation. A motion to approve purchase of a 2015 Dodge Ram 2500 Crew Cab 4x4 pickup truck for $26,187 was made by Directors Wilcox/Sheehan; motion passes 4 to1. Cox-yes Poulsen-yes Gustafson-no Sheehan-yes Wilcox-yes F-7 Amendment to Olympic Estates Development Agreement. This item was removed from the agenda and will be placed on a future agenda. G. Status Reports. G-1 Fire Department Operations/Capital Projects Report. Chief Bansen provided a review of the reports and Department activities including training, public education, fire prevention and equipment updates. G-2 Water & Sewer Operations/Capital Projects Report. Mr. McGraw provided a review of the report. President Cox said he has been monitoring the dumpster site and the site looks very good overall. G-3 Administration Report. Ms. Obayashi-Bartsch made no comments. SVPSD Board Minutes-February 25, 2014 Page 7 of 8
Public Comment none G-4 Manager's Comments. Mr. Geary provided a review of the report. He said a possible Olympic Valley Groundwater Advisory meeting may be convened for drought preparedness and it is possible that a SVMWC operations and maintenance agreement may be brought before the Board for consideration. Mr. Archer said Directors Cox and Poulsen may not discuss this item due to possible conflict of interest. G-5 Legal Report (verbal). Mr. Archer made no comments. G-6 Director's Comments. President Cox said people are leaving the dog waste bags and trash along the bike path and is pleased that the Board will be discussing the feasibility of acquiring the Stables property on the next agenda. H. Adjournment. A motion was made by Directors Sheehan/Wilcox to adjourn the meeting at 11:50 A.M.; vote was unanimous. By, K. Obayashi-Bartsch SVPSD Board Minutes-February 25, 2014 Page 8 of 8
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Attachment A