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REGULAR MEETING
January 3, 2001
In accordance with District Code Section 2.08.010, the TDPUD minutes are action only
minutes. All Board meetings are recorded on audio tapes which are preserved perpetual-
ly and made available for listening to any interested party upon their request.
The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was
called to order at 7:03 PM in the TDPUD Board room by President Maass.
ROLL CALL: Directors James Maass, Patricia Sutton and Ron Hemig were present; Director
Nelson Van Gundy was ill and unable to attend; Director Joe Aguera was expected.
EMPLOYEES PRESENT: Susan Craig, Ian Fitzgerald, Alan Harry, Stephen Hollabaugh, Peter
Holzmeister, Neil Kaufman and Ed Taylor.
CONSULTANTS PRESENT: Attorneys Steve Gross and Andy Morris; Consulting Engineer
Keith Knibb.
OTHERS PRESENT: Among those present in the audience were Frank and Juanita Schneider,
Lin Zucconi, Charlie White and Cathy Polucha.
PUBLIC INPUT
There was no public input. Director Aguera arrived at this time.
STATUS REPORT ON DONNER LAKE WATER SYSTEM ISSUE
Several months ago the District retained the services of consultants to analyze whether to ac-
quire the Donner Lake water system. Their various work products are about to come before the
Board for formal consideration and action.
Sauers Engineering was retained to process the CEQA requirements. A draft mitigated negative
declaration was circulated. Several comments were received expressing concern over the lake
intake and the treatment plant. In consideration of those comments, a revised draft negative
declaration has been prepared and appears later on the agenda as an action item. Staff is pro-
posing that the revised negative declaration be re-circulated for 30 days and a new public hear-
ing be scheduled for January 17, 2001. A final CEQA determination could be adopted in early
February.
Terrance Lowell & Associates were retained to prepare the assessment district engineer's re-
port, which is near completion. That report, along with the draft assessment district ballot and
notice of intent to form an assessment district will appear on an agenda in the very near future.
The Board may want to consider holding a special meeting to deal with this matter as soon as
the documents are in final form and ready for Board action. A public hearing should be sched-
uled 45 days after the ballots are mailed.
Stradling Yocca Carlson & Rauth were retained to help with formation of the assessment dis-
trict. They have prepared the appropriate resolutions, the notice of intent and ballot form that will
be mailed to all Donner Lake property owners. At the appropriate time they will prepare the form
of bond that will be purchased by the State of California to provide revolving fund money to the
project.
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Mr. Holzmeister has been in contact with the administrators of the State Revolving Fund Pro-
gram and has received an application packet. The application cannot be submitted until they
invite the District to apply, which normally is not until the system has been acquired.
Dennis DeCuir was retained to guide staff through the factors involved in possible acquisition of
the Donner Lake water system. When the assessment district engineer's report is joined with
the work Mr. DeCuir has been supervising, the Board will have the information needed to esti-
mate the cost to acquire, rebuild and operate the Donner Lake water system. This information
should be available at the January 17 Board meeting. At that time the Board will be in a position
to discuss and possibly authorize staff to make a formal offer to Robert Fortino to purchase the
system.
Emili Kashton noted that many customers have received a notice identifying that Del Oro is re-
questing $12 million in loans from the California Public Utilities Commission (their estimate of
the cost to replace the pipe, tanks and filtration plant). She said the figures do not seem to come
from a contractor's bid. The 6-inch pipe will not meet the 8-inch fire abatement regulation and
the estimates of installing the pipe on Southshore Drive is estimated far below what it's thought
the cost will be. The 15% engineering and 15% administration fees are not included in the cost.
In adding the listed $16.31 a month for the first year and the $31.51 a month for the following 20
years, for the approximate 1,280 customers, the total doesn't come close to meeting the $12
million loan. Customers have 20 days to contest the loan and request to be a party to the pro-
ceedings.
Ms. Kashton and Juanita Schneider spoke of the urgency in getting the ballots to the Donner
Lake property owners.
CONSIDERATION OF REVISED DRAFT MITIGATED NEGATIVE DECLARATION RELAT-
ING TO ACQUISITION AND UPGRADE OF THE DONNER LAKE WATER SYSTEM
Consideration of authorizing staff to file the proposed negative declaration and environ-
mental initial study with the office of the Nevada County Clerk
Consideration of authorizing staff to file the proposed negative declaration and environ-
mental study with responsible and interested agencies and with the State Clearinghouse
Consideration of authorizing staff to publish a notice of public review period and public
hearing on the proposed negative declaration
Director Hemig moved, and Director Sutton seconded, that the Board take the following action:
Authorize the filing of the amended Environmental Initial Study and proposed Mitigated
Negative Declaration with the office of the Nevada County Clerk. The Negative Declaration
will clearly state that it is an amended version (relating to use of a different water source
once the District has the capacity).
Authorize the circulation of the amended Environmental Initial Study and proposed Mitigat-
ed Negative Declaration with responsible and interested agencies and with the State
Clearinghouse
Authorize publication of a Notice of public review period and public hearing on the pro-
posed Mitigated Negative Declaration.
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Direct staff to schedule a public hearing for the proposed Mitigated Negative Declaration at
the regular meeting of January 17, 2001.
ROLL CALL: Van Gundy, absent; all other Directors, aye. SO MOVED.
CONSIDERATION OF A DRAFT NEGATIVE DECLARATION RELATING TO CONSTRUC-
TION OF A NEW WELL IN THE MARTIS VALLEY
Consideration of authorizing staff to file the proposed negative declaration and environ-
mental initial study with the office of the Nevada County Clerk
Consideration of authorizing staff to file the proposed negative declaration and environ-
mental study with responsible and interested agencies and with the State Clearinghouse
Consideration of authorizing staff to publish a notice of public review period and public
hearing on the proposed negative declaration
Sauers Engineering has completed the proposed Negative Declaration and Environmental Initial
Study for the Martis Valley Well No. 1. The documents need to be circulated to responsible and
interested agencies and made available for public review. The District must also schedule a
public hearing to receive comments. filing the documents with the County Clerk and State Clear-
inghouse will trigger a 30 day review period.
Director Hemig moved, and Director Sutton seconded, that the Board take the following action
regarding the environmental review for the Martis Valley Well No. 1:
Authorize the filing of the proposed Negative Declaration and Environmental Initial Study
with the office of the Nevada County Clerk.
Authorize the circulation of the proposed Negative Declaration and Environmental Initial
Study with responsible and interested agencies and with the State Clearinghouse.
Authorize publication of a Notice of Public Review Period and Public Hearing on the pro-
posed Negative Declaration.
Authorize staff to schedule a public hearing for the proposed Negative Declaration at the
regular meeting of January 17, 2001.
ROLL CALL: all Directors aye. SO MOVED.
CONSIDERATION OF PROPOSAL FROM SAUERS ENGINEERING TO PERFORM CEQA
PROCESS SERVICES RELATED TO CONSTRUCTION OF A PUMP STATION AND PIPE-
LINE ASSOCIATED WITH THE NEW MARTIS VALLEY WELL
Sauers Engineering provided a proposal to conduct the CEQA clearance work relating to con-
struction of the well pump station and pipeline associated with the new Martis Valley well. The
district is trying to have the well in service by June 2001, so there is some urgency to this
CEQA process.
Director Hemig moved, and Director Aguera seconded, that providing the well testing is posi-
tive, the Board approve the proposal from Sauers Engineering dated December 28, 2000 for
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the Martis Valley Well No. 1 pump station and pipeline environmental review. All Directors,
aye, by voice vote. SO MOVED.
BROADBAND BUSINESS PLANNING PROCESS:
Report on meeting with LAFCo committee
Consideration of an indemnification agreement between the District and LAFCo
Status of risk management issue
The Manager reported on the December 28 meeting with the LAFCo Committee. Mr.
Holzmeister, Jim Maass, SR Jones, Don McCormack and Paul Norsell. discussed the revenue
projections contained in the Vectren report. At the conclusion of the meeting, the committee
said that they are prepared to recommend activation of latent communications power to the
TDPUD subject to four conditions:
That the District enter into an indemnification agreement by which it holds Nevada County
LAFCo harmless if sued for approving the latent power.
That the district enter into agreements to pay in-lieu-of franchise fees to the town, Placer
County and possibly Nevada County so there is revenue neutrality.
That there be a 40 month deadline, so if the District does not proceed to construct the
broadband system within that period, the communications power reverts to its latent state.
That the District implement a risk mitigation measure. With respect to risk mitigation,
LAFCo will retain the services of a public accounting firm to review the level of protection
offered by the final agreement and will render an opinion regarding its adequacy.
There was some discussion regarding in-lieu-of franchise fees, revenue neutrality, indemnifi-
cation, and possible reversion to a latent state. The Board reviewed a draft indemnification
agreement and detailed risk mitigation contract.
Director Hemig moved, and Director Aguera seconded, that the Board approve the indemnifi-
cation agreement between the District and LAFCo. ROLL CALL: all Directors, aye. SO
MOVED.
CONSIDERATION OF THE MINUTES OF OCTOBER 4, OCTOBER 18, NOVEMBER 1 AND
NOVEMBER 15, 2001; POSSIBLE APPROVAL
Director Hemig moved, and Director Aguera seconded, that the Board approve the minutes of
October 4, October 18, November 1 and November 15, 2001 as presented. ROLL CALL: all
Directors, aye. SO MOVED.
CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION PURSUANT TO GOV-
ERNMENT CODE SECTION 54956.9(A), THREE CASES: TDPUD vs. USA MEDIA, USA
MEDIA vs. TDPUD AND USA MEDIA COMPLAINT FILED AT THE FEDERAL COMMUNI-
CATIONS COMMISSION
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The Board adjourned to closed session at 8:31 PM.
RETURN TO OPEN SESSION
The Board returned to open session at approximately 9:05 PM. There was no action resulting
from closed session.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 9:06 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
_________________________________________
James A. Maass, President
Prepared by ______________________________
Susan M. Craig, Deputy District Clerk
smc
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