MINUTES

BOARD MEETING

May 14, 2008

  1.       Meeting was called to order at 0900 by Board Chair Tretten.

 2.        Report on Closed Session

            Nothing to report

 3.        Motion to approve April Meeting Minutes.

            Motion – V. Wiemeyer Second – L. Walker                 All in favor – Aye.

 7.        2008/2009 O & M Budget

            The General Manager presented two scenarios for the 2008/2009 O & M Budget.

He explained that there had been significant increases in the electricity, fuel, stipend and mileage reimbursement categories.  This was due to price increases, creation of the new mileage category and in the case of stipends increased emergency responses.  We did have decreases in Workman’s Comp Insurance, greenbelt maintenance and operational contingencies. 

He further advised that before rates could be raised again, a rate study will have to be performed.  A rate study had been performed previously, but research of the Minutes indicated that there was never a formal copy of the Study submitted for approval by the Board, the subject appeared to just fade away when the Board was presented with the applicable rate suggestions.

He asked the Board for approval to proceed to engage the services of a Firm that could accomplish this study.  It was the sense of the Board to proceed.

The General Manager presented Option #1 which allowed for a COLA increase of 3.2% for the employees.  He then presented Option #2 which allowed for the COLA plus a small wage increase for the employees.

There followed a question and answer period on various items in the Budget proposal.  There were also some questions raised concerning the Capitol Budget that was presented at the April Meeting

Discussion and conclusion – Sense of the Board and Committee – no wage increase for General Manager, only COLA, wage and COLA increases for employees, review the O & M and Capitol figures to see if there’s anywhere you can trim, increase the operational contingency amounts to $20,000, and budget for membership for the Volunteer Fire Fighters in CSFA (California State Fire Fighters Association), but budget the funds out of FEERAM.

The final presentation of the Capitol and O & M Budget will be made at the June Board Meeting.

 5.        Bi-State/Heritage Propane

Robert Spaniel and Dave Shelton representing Bi-State/Heritage Propane were introduced to the Board.  Then a recap of the issues that the CSD and Fire Department had with regard to the Sequoia Circle propane tank was presented for the benefit of those present.  Further, Mr. Shelton reported on the safety repairs that had been addressed on the Sequoia Circle propane tank and the time line to finish the work.

The CSD has requested that the propane company name the CSD as additional insured on their insurance policy with a $5,000,000 liability amount.  The propane company is protesting this amount.  Currently the liability amount is $1,000,000 and that has been in place since the tank was installed in 1995.  The Board pointed out that property values have increased significantly since the tank’s installation.  After discussion it was concluded by the sense of the Board and Fire Chief that the $5,000,000 figure is justified.  The propane company will contact their insurance carrier and find out how much this increase will cost them and report back to the CSD Board at the June Meeting.

The CSD has also requested an annual rental fee of $2,500 for the lot where the tank is installed.  The propane company protests this fee sighting that they have an agreement in place with the Plumas Pines Master Association that no rental fee is charged.  The CSD Board explained to the propane company representatives that at the time of the agreement, the land was owned by the Homeowners Association, it has since become the property of the CSD, hence the rental fee request.  Mr. Spaniel went on record that he has an objection to the CSD’s request for the insurance increase and rental fee.  This is so noted. 

The Homeowners Association will research whether or not the contract originally signed in 1995 is still valid since the CSD now owns said property and will report back to either the General Manager or the Board.

The matter has been put on the June Agenda for further discussion.

1045 hours to 1058 hours – the Board and Committee Members took a short break. 

 4.        Fire Chief’s Report

            Calls – four since the last Board Meeting

                        4/24     Vehicle Accident

                        5/4       Vegetation Fire

                        5/7       Vehicle Accident

                        5/13     Vehicle Accident

            Personnel – Engineer Fox is back from Southern California

            Grant update – pending

            Miscellaneous

• The Chief explained to the Board that the Volunteer Recruitment and Retention is at an all time low and we need to do something to encourage people to join the Department.  There was some discussion on increasing stipends for calls and other incentives, such as paying for Training attendance and membership in the CSFA (already discussed under item #7).  The Board asked the Chief to canvas the other Departments in the area and find out what they are doing to retain personnel.

• The Chief informed the Board that Fire Season was declared by CALFIRE on May 12th.  This is a month earlier than normal.  The Board of Supervisors has petitioned the Governor to declare Modoc, Plumas, Lassen and Sierra Counties in a Fire State of Emergency, if this occurs there will be ban declared on all open flame fires in areas other than established campgrounds and emergency equipment and crews will be mobilized and staged in various areas. 

• Further, the Chief would like to have an Ordinance in place that bans open flame fires in the District as soon as Fire Season is declared.  After discussion it was the sense of the Board to have a Resolution drafted for presentation at the June Meeting.  The item was put on the June Agenda.

• Weed Abatement Inspections will start in the next few weeks, although weeds are still green at this time, they will dry out very quickly as soon as the weather warms up.

• There will be a Driver Operator 1A Class on the 17th and 18th at Graeagle Fire, the Chief will be one of the instructors and Captain Castagnetti, Engineer Machado and Engineer Fox from our Department have signed up to attend the class.

• 9178 – The Type 3 Engine is almost ready to go, we are ordering just a few more tools.  There was a discussion on how to house the Engine here at the Department, since it is too long for Engine Bay #4.  The Chief proposed that the Bobcat be moved from the lower garage #3 up to Engine Bay #4 and that the two CSD Fords be moved over into lower garage #’s 2 & 3 so that 9178 could be housed in #1.  The Board and General Manager both felt that this was a good idea and the switch around would be implemented.

 6.        LAFCo

Members of the Board discussed an article that had appeared in the Portola Reporter the previous week criticizing the fees that are being charged by LAFCo for Municipal Service Review’s and Sphere of Influence reviews versus fees charged by other counties. 

Discussion and conclusion – canvas other Districts to find out their feelings about said fees and if the MSR and SOI has been done for them and how much did it cost?  Send a letter to LAFCo asking for specific amounts for specific services.  Legally we cannot get out of having the reviews done, but we can negotiate to lower the cost.  The review process is not the problem it is the cost and open ended contract language that’s the problem.  The matter will be continued.

 8.        Wells and Arsenic update

The General Manager reported that from November to March our arsenic levels are down, but during our high usage months from April to October, the arsenic levels exceed the regulations set by the Federal Government.

The General Manager has been speaking to the Engineers and Plumas Geo-Hydrology to try to figure out some ways to lower the levels. 

We will also apply to the State Revolving Fund for a loan for a Water Treatment Plant.  But in order to apply, there must be a Preliminary Engineering Report done, this will identify our options, but the report will cost between $20,000 and $30,000.  It was the sense of the Board to proceed to find a Firm that can perform this Report.  The General Manager further advised the Board that the California Rural Water Association has personnel on staff that will aid us in the application paperwork.

The Board and members of the Public voiced their frustration at the unreasonable levels of arsenic limits that are set in this new law set up by the Federal Government.

This will be a continuing item on the Agenda.

 9.        PEPS Pine Needle Pick up

This is set to occur on May 31st and June 1st.  The CSD will provide the Bobcat and CSD employee Shane Frazier will act as the operator pushing back the pine needles in order to hopefully keep the dump site open longer than in the past.  Both days will be eight hour days.

10.       Expenditure Request

            Nothing to report.

11.       Goals and Objectives

The Goals meeting was held on the 13th and all who attended the Meeting felt that it was quite productive.  Larry Walker was complemented on his acting as the host of the Meeting.

12.       Standing Committee Reports

            Personnel – nothing to report

Safety – working on Emergency Preparedness Plan, the County is working on one also.  The Fire Chief has requested something simple and the Committee will research finding a boilerplate to use as a guide.

The Clerk advised that we have Red Cross pamphlets available on various emergency preparedness subjects.

Insurance – nothing to report

Recreation (new) – R. Machado reported that he will be contacting the owner of the last lot on Sugar Pine Lane (next to the River) to see if she may be willing to donate it to the CSD for possible use as a park area.

The Board discussed the pros and cons of this proposal.  Such as noise, trash, liability insurance issues, increased vehicle traffic, sanitation and the opposition from neighbors.  It was mentioned that if you don’t golf or haven’t paid the fees for the Recreation Center, then what can one do for recreation in the area?

This is a subject that is now on the Goals and Objectives list and Mr. Machado will continue to look into the subject matter and continue to report to the Board.

13.       Future Agenda Items and New Business

            The Clerk reviewed the items listed for the June Agenda.

14.       General Manager’s Report

            The Board reviewed the April Financial Reports.

            Motion to approve.

            Motion – L. Walker                  Second – F. Shepard                All in favor – Aye

• GLRID – we had personnel that helped Grizzly Lake Resort Improvement District with their annual effluent discharging to the River.  This project ended on April 25th, because the River level lowered.  So far, we have billed them $1400 for our services and there is one more invoice to be sent.
• DHLF Loan – Brandis Tallman has prepared a Transaction Summary that is on file in the CSD Office.  This outlines the entire loan process and the payment schedule.
• CDPH – The California Department of Public Health is the agency that we will be applying to for the loan for the Water Treatment Plant, this will be a low interest loan and the application deadline is October 31st.
• AB303 Grant – The PEGG (Plumas Eureka Groundwater Group) will not be meeting again until we have the results of our application for the grant money for the monitoring well.  This will be somewhere around May 21st.
• Miscellaneous

The General Manager advised the Board that the CSDA (California Special Districts Association) has some vacancies on their Board if anyone is interested he has the forms in the CSD Office.  No interest

• In April the Department of Public Health inspected the Water System.  We       scored very well but in the backflow devices testing area we did not score well, due to the fact that the Firm that used to do our testing is no longer in business.  We approached Quincy CSD, who has the equipment but their fees are too high.  There is a class in Reno on Backflow Device Testing that will be put on by the AWWA (American Water Works Association), cost is $1400 and Lew Prince would like to attend.  This is a fine idea since upon completion of the class he will be certified in backflow testing and we can shop out this service to other Districts that are in need of this testing.  Sense of the Board to proceed.
• Tours – we have posted notices in the District announcing the tours.  We would like to invite the Board Members to be our first Tour so that they can give us feedback on the information presented.  This will be scheduled in the near future.
• Plumas Pipelines Newsletter – the Spring issue will be sent out this week
• Gold Mountain CSD – The General Manager is still under contract with them as interim General Manager, but they are about to start their search for a permanent General Manager position.

15.       Written correspondence to the Board

            Nothing to report

16.       Opportunity for the Public to address the Board

The member of the Public that was present had been commenting throughout the meeting, and he thanked the Board for allowing him to do so.

17.       Motion to Adjourn

            Motion – L. Walker                  Second – V. Wiemeyer            All in favor – Aye.

Meeting adjourned at 1310 hours.

In attendance:

Board – E. Tretten, L. Walker, V. Wiemeyer, F. Shepard, R. Machado

Committee – B. Carrera, B. Conen, D. Blaylock

Absent – E. Yelland and B. Yelland

                                                                                                Respectfully submitted,

                                                                                           TERESA  L. CUNNINGHAM  

                                                                                                Teresa L. Cunningham

                                                                                                Clerk to the PECSD Board