Squaw Valley Mutual Water Company P.O. Box 2276 Olympic Valley, CA Phone: (530) Fax: (530)

Transcription

1 Squaw Valley Mutual Water Company P.O. Box 2276 Olympic Valley, CA Phone: (530) Fax: (530) Board of Directors Meeting Saturday, November 13, :00am BOARD PACKET Agenda Page 1 Minutes from Sept 4, am Meeting Page 2-4 Minutes from Sept 4, 2010 Annual Meeting Page 5-9 Minutes from Sept 4, pm Meeting Page President s Report Page Treasurer s Report Page 15 Budget to Actual Page 16 Operations Report Page Office Managers Report Page 19 USDA Timeline #1 Page 20 USDA Timeline #2 (Interim Financing) Page 21 Water System Improvement Project Cost Update Page 22 Proposed Connection Policy Page 23

2 Squaw Valley Mutual Water Company Saturday, November 13, :00 am PSD Community Room AGENDA Call to Order Roll Call, establish a quorum Call to the audience for any topic not on the agenda Approve the Agenda Minutes of the Last Meeting - Lynn Suter September 4, 9:00, 10:00 Annual Meeting, 12 pm meeting Report from the President - Margot Garcia Electronic Votes Report on Neighborhood Meetings Report from the Treasurer - Alisa Adriani Report from Operation's Manager - John Collins Report from Office Managers - Cory and Anne-Marie Giese Progress on USDA Loan application Report from Capital Improvements Project - Steve Brigman Surveying Design work Estimated Timeline for RFP, construction Discussion of/decision on structure of USDA loan payments Discussion of/decision on Chlorine Issue Discussion of/decision on Connection Policy (see revised from July 24, 2010 meeting). SVMWC Board of Directors Mtg 11/13/10 Page 1 of 23

3 Squaw Valley Mutual Water Company Minutes Meeting of Saturday, September 4, :00 a.m. Call to Order: President Garcia called the meeting of the Squaw Valley Mutual Water Company Board of Directors to order at 9:06 a.m. Roll Call and Establishment of Quorum: Secretary Suter called the roll, and a quorum was established. Directors Present: Adriani, Bossung, Burke, Garcia, Salinger, Suter Directors Absent: Mercer Staff Present: John Collins, Anne Marie Giese, Cory Giese, Steve Brigman Members Present: Carl Gustafson Agenda: There were no additions to the Agenda. It was moved, seconded, and unanimously passed that the agenda be adopted. Minutes: It was moved, seconded, and unanimously passed that the minutes of the meeting of July 24 be approved. President s Report: Electronic Vote: President Garcia noted that one electronic vote took place during the interim period between meetings. Motion was made by Suter, seconded by Bossung, and passed unanimously that Anne-Marie Giese be named coordinator of the USDA loan for the Mutual for a fee of $75 per hour, not to exceed the $12,000 budgeted expense for both her and John Collins. Neighborhood meetings: President Garcia announced that all of the neighborhood meetings had been set up. There will be an open house today at the old firehouse following the Annual Meeting. The other meetings are scheduled: Thursday, Sept. 16 (4-6 p.m.) at the home of President Margot Garcia; Saturday, Sept. 18 (11 a.m.-1 p.m.) at the home of Director Lynn Suter; Saturday Sept. 18 (3-6 p.m.) at the old firehouse. Maps and charts showing the project, connection policy and costs will be available at the meetings. Representatives from Shaw Engineering and Operations Manager John Collins will be available to answer questions about individual properties and other engineering inquiries. President Garcia spent significant time reconciling anomalies in the subdivision map, assessor s records, and the Mutual s records to insure accuracy in anticipation of preparing detailed engineering plans for each house as the project commences. Director Adriani noted a discussion with Member Charles Lockhart concerning location of his connection box in a retaining wall. This is an example of individual situations that may come up at the neighborhood meetings. SVMWC Board of Directors Mtg 11/13/10 Page 2 of 23

4 Next steps: President Garcia noted that the Board must finalize a house-connection policy, including for vacant lots. In addition, the Board must pass a motion formally approving the loan package and its submission to USDA. USDA Loan Application: President Garcia and Anne-Marie Giese described the status of the USDA loan application. Mrs. Giese noted that the loan application would be complete and ready to submit on Tuesday, September 7. She is still negotiating the timing and amount of fund releases by USDA. Other details, such as completed and signed documents, and draft and review of financial information, are completed. It was duly moved, seconded, and unanimously passed that the Board accept the loan package and have it forwarded to USDA for approval. Operations Manager s Report: John Collins noted the completion of pre-rehab pump testing at Wells 1 and 2. The well casing in Well #2 is not efficient in letting water in or out, and rehab work is scheduled for later this month. Mr. Collins introduced the LEC Corporation proposal for the one-year inspection of the new tank. Inspection, Cleaning, and Reporting is bid at $2,475, plus $500 to vacuum out sediment, which Mr. Collins observed in the bottom of the tank. Steve Brigman noted that the tank is designed to trap sediment. Director Bossung said that the bid is a lot of money to do an inspection on a brand new tank, and noted we already paid somebody to do a tank-coating inspection. Mr. Brigman answered that the inspection is routine, and is required to be camera-ed and that the bid includes a warranty for a year, which he likened to a $2,000 insurance policy. Mr. Collins noted that, if approved, he would make sure the work is done on a timely schedule in order to keep the warranty intact. Directors Salinger and Bossung questioned the $250 cost for a bound copy the report, stating that we could access it online and print it out ourselves. It was duly moved, seconded, and unanimously passed that the Board accept Bid No from LEC Corporation to clean, inspect and file reports on the condition of the steel well, with the exception of the $250 charge for one bound copy of the Report. Timeline for Project Construction. Mr. Brigman noted that the timeline for project construction and completion is dependent upon two uncontrollable factors: USDA time line, and snow. He noted that the USDA loan slows the process down through their review of all engineering plans, their formal authorization to bid, and their concurrence on bids. It may or may not be possible to finish the required work in time to start construction prior to snowfall. He suggested the Board might want to consider bidding only the upper zone, and bid the rest later after snowfall. He cannot commit that a walkthrough will occur prior to snowfall, as it is now late in the season. President Garcia suggested doing the walk-through first, noting we lose many months if we cannot complete that step before snow. Mr. Brigman noted that some of these factors are beyond our control. Katie Hammond made it clear that she SVMWC Board of Directors Mtg 11/13/10 Page 3 of 23

5 would move us through the process as quickly as possible. However, USDA could ask for technical analyses that are not a part of the report. He doesn t expect any big problems, but it could be 60 days or longer for the application to be approved. Issues for General Membership Meeting: Chlorination President Garcia noted that the issue of chlorinating SVMWC water might be a likely topic of discussion at the Annual Meeting. She noted the reasons for chlorination, and Director Adriani pointed out that the Mutual is not under a mandate to chlorinate now that the new steel tank is operational. She noted that the Squaw Valley Public Service District does not chlorinate, and mentioned health concerns raised on the Cal EPA website. ( Mr. Collins noted that the sewer line between Well 1 and Well 2 is a potential source of contamination, along with other risks such as cracks in water lines. Director Salinger noted that SVMWC has more liability than the Public Service District, and if a coliform or other event should occur, we could be sued for not chlorinating. He stated that there is no downside to chlorination at the low levels utilized by the Mutual. Director Bossung noted that the act of taking chlorine away could create a liability problem because it is a direct decision NOT to chlorinate, possibly placing the Mutual at a higher risk than if chlorination had never occurred. He noted that the Mutual is much easier to sue than a public agency. Director Burke suggested the Board create a working session to examine health impacts and legal obligations, and a thorough assessment of the issue. Director Adriani noted that some people do not like chlorine, and that the Board must assess what its Members want. She has heard from some Members who are upset about the quality of the water and its chlorine odor, they need assurance about the quality of the Mutual s water. She noted that the Mutual voted against joining the Public Service District because we had such good water and if now our water sucks, why not join the PSD? If concerns are raised about chlorination at the Annual Meeting, President Garcia suggested we schedule a public workshop to air water quality, heath concerns, liability, and science related to chlorination, noting that Director Salinger is both a physician and an attorney and might be able to suggest experts to assist. Adjournment. It was duly moved, second, and unanimously approved that the meeting be adjourned. SVMWC Board of Directors Mtg 11/13/10 Page 4 of 23

6 Squaw Valley Mutual Water Company Minutes Annual Meeting Saturday, September 4, :00 a.m. Call to Order: President Garcia called the Annual Meeting Meeting of the Squaw Valley Mutual Water Company to order at 10:04 a.m. Roll Call and Establishment of Quorum: Secretary Suter called the roll, and a quorum was established. Directors Present: Adriani, Bossung, Burke, Garcia, Salinger, Suter Directors Absent: Mercer Staff Present: John Collins, Anne-Marie Giese, Cory Giese, Steve Brigman Members Present: Bob Buckter, Cecile & Harold Weaver, Marleen Barnett, Leon & Barb Futran, Allen Riley, Florence & Carl Wild, Judy Smith, Frost Prioleau, Jon Shanser, Frank Sahlman, Ed & Gretchen Thomas, Patti Guilford, Dan Kenney, Loraine Fulmer, Kjell Ekker, William Noble, Dale Cox. Agenda: There were no additions to the Agenda. It was moved, seconded, and unanimously agreed that the agenda be adopted. Call to Membership for Items not on Agenda: Member Dale Cox announced that he is thrilled to get rid of the redwood tank, and to have the new and updated steel tank. He thanked the Board of Directors for a great job. Minutes: There were no questions or changes to the minutes of the Annual Meeting of September 5, It was moved, seconded, and unanimously passed that the minutes of the 2009 Annual Meeting be approved. President s Report: President Garcia announced the Mutual s completion of the new steel tank to replace the ancient redwood tank, and the benefits already seen: pumping less water, using less water, and using less electricity. She reviewed the Board s work for the Mutual in the past year, including a long-term plan to bring the water system up to fire safety and pressure standards for all Members. The Mutual has taken advantage of a low-interest loan from the USDA Rural Development Program by applying for a 40-year, 4% loan for the full cost of the capital improvements needed. After reviewing three bids, the Board accepted Shaw Engineering to complete the Preliminary Engineering Report (PER). To compete for this advantageous financing the Board voted to retain the following: SVMWC Board of Directors Mtg 11/13/10 Page 5 of 23

7 Financial Analysis Operations Manager John Collins; Legal sign-off Andrew Morris of Best, Best, and Krieger (who agreed to forego his required deposit and offer a less expensive rate); Anne-Marie Giese as coordinator of the many documents required by USDA. The goal is to deliver the application by September 1. The loan application is for $4,066,340 to make these improvements: Bring fire flow capability to standard requirements, and improve pressure to homes on Navajo and Apache in the upper pressure zone; Move back-lot water mains to streets to allow for required fire hydrants and access for repairs, leaving 3 to 5 years for Members to move their connections; Upgrade service boxes for winter location and automaticread water meters. President Garcia discussed financing and rate changes needed to accomplish these results in her report, which is included in the agenda packet for the Annual Meeting. This document may be accessed in full in the agenda packets at this meeting, or by links at She announced that the USDA loan is ready to be submitted for the cost of construction plus contingencies, noting that the estimates may be higher than the actual costs because of low construction costs in this recession. For example, estimates for the new steel tank came in at $500,000 but the actual cost was about $300,000. Financial estimates for improvement to the 60-year old system will most likely require rate increases. The USDA loan is ready to be submitted. Decisions still must be made for 18 vacant lots, which will be part of the discussion at the neighborhood meetings scheduled for today and for September 16 and 18. The meetings are an opportunity for Members to examine the details of the project and talk with the Operations Manager and engineers about specific details of their particular homes and parcels such as placement of water boxes, and plans reflective of individual situations. The first of these meetings will take place today at the old firehouse from 3-5 p.m. today. In other matters, President Garcia described basic projects, including provision of a dependable back-up generator to replace the current one that originally came from a WWII ship. She reported that the Mutual had no boil water notices this year, and its business is operating smoothly with contracts for office management, operations and maintenance and accounting. She referenced details of the CDPH Annual Inspection, noting our water meets all state and federal standards, and several items needing correction. See SVMWC website for details on this and other items in the President s report, and including agendas, minutes, financial reports and newsletters, at In conclusion, President Garcia noted the expertise represented by members of the current Board of Directors, solid financial footing of the Mutual, and a concrete plan to provide safe and reliable water and effective fire-flow response. She thanked Board Members for their time and service. SVMWC Board of Directors Mtg 11/13/10 Page 6 of 23

8 Treasurer s Report: Treasurer Adriani summarized the financial details included in the Agenda Packet, noting there were no new assessments this year, and there are only two more payments on the long-term note with Plumas Bank. The Mutual has had a smooth year, and retains a line of credit with Plumas Bank of $150,000. She cited the 4% loan from USDA as opposed to the 6% loan offered by Plumas as the reason for the Mutual s application for the USDA loan. An independent audit by McClintock Accountancy Corporation resulted in no audit recommendations and a vote of confidence in the management of the Mutual. See Agenda packet available at this meeting or follow links at for the full Treasurer s Report. Water Operations Report: Operations Manager John Collins noted that the water system is and has been in compliance with state and federal requirements for the whole year except for one incident of coliform in the upper well resulting from the first heavy rain last fall. This only affected homes in the upper zone. Since the new tank has been online, unit costs went down this summer. However, rate increases are anticipated for improvements, but will be adjusted for actual use when meters come online. Election of New Board. A recess was taken for voting, followed by a continuation of the meeting. System Modernization Plan Report from Shaw Engineering. President Garcia introduced Steve Brigman from Shaw Engineering, who provided small copies of a map of properties served by the Mutual. He explained that the Plan comes from the Water Master Plan adopted by the Board in The replacement of the redwood tank is completed, and Shaw is in the process of taking a further look at the 2008 recommendations in light of more sophisticated water and pressure flow models required by the USDA to secure funding. These include pressure flows, fire flows, base mapping, and survey of valve locations. Shaw Engineering has looked at various alternatives, including replacing the rear lot lines, which are made of cast iron, old, and close to the end of useful life. Based upon this information Shaw recommended the four projects which the Board accepted, and is attempting to get funded. He referenced the beneficial construction cost climate, which will not get any better. He cited the low pressure problems in the Apache and Navajo neighborhoods, the inadequate fire flow at upper levels, and the upper pressure zone expansion. He stated the Mutual will receive a big bang for the buck because improvements will greatly increase the capacity of fire hydrants to deliver water through increase in the diameter of water lines. Improvements will allow for more efficient water flow through abandonment of back lot lines, with street-level reconnection allowing for several new hydrants adding about 20 hydrants to the 20 existing ones. This would result in meeting the state requirement of one hydrant every 500 feet. Director Burke commented upon the need to size the new system so pressure will remain adequate for all parcels, and questioned the requirement for Mutual to install meters. Various Members also made comments concerning meters and water pressure. SVMWC Board of Directors Mtg 11/13/10 Page 7 of 23

9 Carl Wild questioned the relocation of lines for purposes of effective maintenance. He stated that the connection to the new line to the street is a very serious issue and will have consequences for homeowners. He noted that the cost to some homeowners and the effect of the curb appeal on their properties will be serious, and suggested that the cost to some homeowners will be enormous. Patti Guilford suggested that the cost per lot could be as much as $30,000 to $45,000 and questioned whose responsibility it is to bear the cost. She expressed concerns that the back-lot easements stay in place. Director Burke explained that the lines from the water box to the house are the homeowners responsibility, and the lines from the water box to the street are the Mutual s responsibility and responsibility for lines from the connection to the house lie with the lot owner. Discussion ensued about electronic reading of meters in the back lines vs. the street lines. Ms. Guilford suggested that moving some of the older lines on upper Sandy and Squaw Valley Road would result in prohibitive costs. She agreed with comments by Dale Cox that easements should be retained. Dale Cox stated that he supported the fire flow goals, but does not agree with the projected unseen costs to some lots, and feels that connections costs should be included in the overall costs of improvements. He stated that calculation of linear pipe costs in incidental the cost to expensive landscaping. He expressed concerns about the financial challenge to homeowners, and warned the Board not to assume all Members are good with this. He stated that there is a big difference between putting the project on paper and the cost of the finished product. Steve Brigman noted that the relocation of the lines has been under discussion for two years for a variety of reasons including fire flow, cost differentials for repair and replacement of back lot lines, and ease of access. He noted that back-line homeowners cannot sell their homes without disclosing the problem of replacing old back lot lines, citing problems of locating old mains and replacing them. Director Bossung said he originally had questions about relocation of the back lot mains, and it is all pain, but necessary to rehabilitate the aging system. He said the engineering surveys indicate that moving the lines is the right approach and Members should examine the two alternatives. He noted that the Board looked at alternative ways of paying for the improvements e.g. new assessments vs. an advantageous loan. Director Adriani asked if the connection costs could be included in the loan. President Garcia and Mrs. Giese stated that they could not that all connections are legal responsibility of the homeowner. USDA cannot provide loan funds to improve private property. President Garcia noted that the Board had polled the Membership on the question of assessment vs. loan, and most Members preferred the loan approach. The Board considered a number of loan proposals, all of which were substantially more expensive than the USDA loan. A short discussion ensued about comparative terms of the proposals. Discussion continued regarding the number of fire hydrants needed, which lots are most impacted, and the difficulty in updating the records. SVMWC Board of Directors Mtg 11/13/10 Page 8 of 23

10 Allen Riley of 1292 Sandy Way spoke in favor of using existing easements, as he estimated an additional $10,000 cost for moving the water mains to the street from the rear lots. Dale Cox brought up problems in other water districts, and stated that it is the homeowners responsibility to use existing easements, noting that owners are just now realizing the additional cost involved. He asked the Board for reconsideration of moving the lines from the rear lots. He stated that we need to know what the actual costs will be before moving forward. Steve Brigman stated that the costs of either option are similar for the Mutual because of logistical problems with construction in the back lots. It will cost $1.9 million to go to the street and $1.7 million to go to the back lots. He pointed out that there are a number of issues that are not strictly economic such as the need for more hydrants, access issues, and meter placement. He discussed factors affecting lots on Lanny and whether or not new connection pipes would be needed. He and Dale Cox discussed the size of the easements between houses (15 feet), depth needed to deal with frost and other details. Patti Guilford said she agreed with the majority regarding use of existing easements and asked if she would be required to have all work completed at the point of sale, or whether the date for completion will start some years down the line. She noted she has just replaced the line from her box to the house. Her house was built in 1960 and she has noticed a huge difference in water quality. President Garcia stated that the Mutual would have to go back and look at the age of each house and plot some of the problems in individual cases, such the size, material, and condition of the existing connection pipes. Patti Guilford stated she would object to any proposal that would replace newly installed water mains or required homeowners to pay for new connection. She asked a question regarding the timing or requirement for water meters. President Garcia restated the importance of Members attending the neighborhood meetings where there would be maps and other documents available for discussion with the Operations Manager John Collins, Engineer Steve Brigman, and Members of the Board, and where each individual property can be discussed in depth. Announcement of Election Results. Anne-Marie Giese announced the results of the vote. Each of the three candidates Ken Bossung, Margot Garcia, and Lynn Suter received 77 votes apiece, and were elected for another two years. With no further business before the Board and Members, President Garcia announced the adjournment of the Annual Meeting. She noted that there would be a 10-minute recess followed by convening the new board for a short meeting. Respectively submitted, Lynn M. Suter Secretary SVMWC SVMWC Board of Directors Mtg 11/13/10 Page 9 of 23

11 Squaw Valley Mutual Water Company Minutes Board of Directors Saturday, September 4, :00 p.m. Call to Order: President Garcia called the Annual Meeting of the Squaw Valley Mutual Water Company to order at 12:05 p.m. Roll Call and Establishment of Quorum: Secretary Suter called the roll, and a quorum was established. Directors Present: Bossung, Burke, Garcia, Mercer, Salinger, Suter Directors Absent: Adriani Staff Present: John Collins, Anne-Marie Giese, Cory Giese, Steve Brigman Members Present: Cecile & Harold Weaver, Patti Guilford, Dale Cox Agenda: There were no additions to the Agenda. It was moved, seconded, and unanimously agreed that the Agenda be adopted. Minutes: The Minutes of the prior board meeting, held at 9:00 a.m. the same day, were postponed until the next meeting. Election of Officers: President: It was duly moved, seconded, and agreed unanimously that Margot Garcia be named President of the Board. Vice President: It was duly moved, seconded, and agreed unanimously that David Mercer be named Vice President of the Board. Treasurer: It was duly moved, seconded, and unanimously agreed that Alisa Adriani be named Treasurer of the Board. Secretary: It was duly moved, seconded, and unanimously agreed that Lynn Suter be named Secretary of the Board Discussion of Annual Meeting. Director Bossung stated that of the financing options we examined that the USDA loan option is clearly the best option for the Mutual. He noted that accepting the terms of the USDA loan means we must install meters, but perhaps that could be done down the line instead of immediately. Director Burke stated that the Board should re-evaluate some elements of the project, even if it means measuring each house, including the $500,000 for laterals and SVMWC Board of Directors Mtg 11/13/10 Page 10 of 23

12 landscaping. He suggested asking the engineers to refresh the cost and provide a cost estimate on the back lot connections. Steve Brigman noted that we are at a point in the process where we must secure the loan, but that there will be opportunities to include many combinations of improvements down the line. Patti Guilford noted that her water improved with the new line and stated this would be a positive aspect to improving the water lines. President Garcia stated the need for the Board to see some real numbers such as a per foot estimate of the cost of replacing the laterals. David Mercer asked for a description of some of the variables that would affect cost of laterals, cost of obtaining the right-of-way in the county roads, and the cost of any possible additional easements we may have to acquire. He would like to see a worst-case scenario. He asked that the Board have four or five estimates of costs for individual connections, both house-to-street and relocation of pipes back-to-front. Cecile Weaver asked if there were additional ways to make Members aware of the neighborhood meetings and get them to come. Dale Cox said he would contact some people online. Next Board Meetings: October 30 or November 13 was suggested for the next meeting. Another meeting should be scheduled sometime between December 20 and January 5. Anne-Marie will firm up the dates. Adjournment. At 12:30 p.m., upon motion duly made, seconded, and unanimously agreed, the meeting was adjourned. Respectfully submitted, Lynn M. Suter Secretary SVMWC Board of Directors Mtg 11/13/10 Page 11 of 23

13 Squaw Valley Mutual Water Company President's Report for November 13, 2010 Electronic Votes: Motion: To authorize Shaw Engineering to hire Webb Land Surveying Inc. to survey Squaw Valley Road and a small part of Sandy in order to proceed with detailed drawings for pipe placement. Second: Lynn Suter Motion made September 30, 2010, passed October 1. Action authorized October 4, Vote: 7 yes, 0 no. Motion: To authorize John Collins to sign a contract with Carson Pump for $6,880 to treat SVMWC Well #2 as proposed in the proposal of 10/20/10 Seconded: Steve Burke Motion made October 20, 2010, passed10/21/10 and action authorized October 20, Votes: 6 yes, 1 no vote. Motion: To authorize John Collins to sign a contract with Carson Pump for $6, to chemically clean and disinfect the casing in Well #1. Seconded: Ken Bossung Motion made: November 6, 2010; passed Nov 7. Authorized action November 7. Vote: 6 yes, 1 no vote; Well work As per earlier agreement, John Collins hired Carson Pump to video and clean casing in Wells #1 and #2. The first issue was to exercise our use of the easements to the pump houses so that the trucks needed to do the work could gain access to the wells. Ski Corporation has leased the properties from Poulsen Commercial. Mike Livak of Ski Corporation said access was acceptable with him, if it was acceptable to Russell Poulsen of Poulsen Commercial. Russell asked for $500 rental fee and $2000 deposit to make sure we cleaned and left the area as before. Ski Corporation asked for the same amount. I talked to Mike Livak and we agreed it was not necessary for us to pay twice to use the property. He agreed to no rent but to a deposit. So the Mutual has a $2000 deposit with Poulsen Commercial and $2000 with Ski Corp for the month we have accessed the wells with heavy equipment. Well #2 has been videoed, the casing cleaned, disinfected, and put back in service. The same is underway for Well #1 as this report is being written. Taxes I signed the 2009 Federal Return of Organization Exempt from Income Tax and the 2009 California Exempt Organization Annual Information Return. What Cory Giese discovered in his SVMWC Board of Directors Mtg 11/13/10 Page 12 of 23

14 work on the tax filings this year is that the Mutual owes taxes on any interest we earn. So, we owe taxes on the interest we charge our members on the assessment they are paying over time, He has confirmed this interpretation of the law with people at the California Franchise Board. The Mutual has filed amended tax returns going back to tax year 2006 and we have paid what is owed. Giese Accounting and Tax has paid the fines and interest accrued. I consider this a very fair accommodation. Cory is now the local expert on this fine point of tax law and has explained the finding to a number of other accounting firms in the region. Newsletter A fall newsletter was mailed out at the beginning of November and it covered the neighborhood meetings, the annual meeting, and a report on the analysis of using existing easements for pipe replacement. Neighborhood meetings A total of about 50 people attended the four neighborhood meetings held September 4, 16 and two on the 18 th. One person attended all four; several attended two. Steve Brigman, John Collins and I did most of the talking and answering questions. There was a lot of misinformation that we tried to correct. Some people are perfectly fine with moving their house laterals, others want the Mutual to pay the cost since "they" caused the expense. Steve Brigman and John Collins at different times met individually with some of the homeowners and went over their lots, with the maps and looked at the particular situation. Each service box will need to be located where it best fits the situation. There are people who continue to want us to use the easements behind the houses. Steve and his crew did an analysis of the easement and the problems of using it. One retired plumbing contractor who came to one of the meetings said we would be crazy to use the old easement because of the problems of access, keeping water flowing while installing new pipes, and problems of dealing with the old brittle pipes that are in the easement, not to mention to the landscaping that has grown or been planted over the easement. The debate is being pushed by just a couple of vocal people. I hope the newsletter article will help quell the easement debate. Report from David Brew on October 28, 2010 Resort at Squaw Creek Technical Review Committee meeting. Two topics made up the agenda: revisions of the irrigation section of the CHAMP (Chemical Application and Management Plan) and what the resort should write into their annual irrigation report; and the process to use to approve any application of a new chemical. This last topic is an issue since some people want to use glyphosate (as found in RoundUp) to control White Top on the meadow. White Top is a water-using invasive plant that usurps local vegetation. The effort to control it by pulling has not been successful and it has increased the area where it grows. It is unclear if glyphosate has been approved for application on the meadow. The next meeting is scheduled for April 28, The Mutual has ½ a vote on the committee. SVMWC Board of Directors Mtg 11/13/10 Page 13 of 23

15 Olympic Valley Groundwater Management Plan Advisory Group Meeting. The Olympic Valley Groundwater Management Plan (GMP) Advisory Group met on October 14, 2010 and received the Olympic Valley Monitoring Plan and Database from Derrick Williams of HydroMetrics. The GMP calls for coordinating existing groundwater monitoring plans in Olympic Valley. The goal is to put an appropriate level of existing groundwater level, well construction, groundwater pumping and groundwater quality data into a single database; and to develop a formal coordinated monitoring plan for collecting high quality data useful for managing groundwater (as well for computer modeling of the aquifer). SVMWC is part of this effort and we will continue to cooperate by supplying information about our wells, such as the videoing and cleaning the casing we just went through and reporting monthly pumping data. We are being asked to purchase and install a data logger in Well #2 in order to report the groundwater level on the first day of each month. Water quality data that we collect for CDPH also needs to be collected in the database. The plan suggests that the database be updated twice a year with the data that is collected monthly (and less frequently for water quality) at the beginning of October and in May. We need to decide who and how to carry out these actions in order to participate cooperatively in this effort. Margot Garcia SVMWC Board of Directors Mtg 11/13/10 Page 14 of 23

16 Squaw Valley Mutual Water Company P.O. Box 2276 Olympic Valley, CA Phone: (530) Fax: (530) November 13, 2010 Treasurer s Report Account Balances as of 11/9/2010 Money Market $149,086 Operations $ 3,457 Loan Balances Plumas LOC Current Balance $ 0 Available Credit $150,000 Interest Reserve $8,760 Interest Rate Prime % Variable (6.0% Floor) Cost Per Year $375 ***Renewed March 31, 2010*** Plumas Bank Long-Term Note Current Balance $ 37,941 Interest Expense $849 per month Payment $40,616 per year Last payment due 10/1/2011 Interest Rate 6.510% APR Assessment Billed (First Half) $ 162,236 Collected $ 162,023 Outstanding $ 213 Accounts Receivable for Fees $ 226 Total Accounts Receivable $ Tank Replacement Special Assessment Lots paid in full 177 Lots on payment plan 104 Lots unpaid 0 Total Lots 281 SVMWC Board of Directors Mtg 11/13/10 Page 15 of 23

17 SQUAW VALLEY MUTUAL WATER COMPANY BUDGET TO ACTUAL As of November 9, 2010 YTD Budget Under/ (Over) Budget Income Capital Assessment 57, ,680 56,480 Operating Maint. Assessment 60, ,280 59,263 Water Service Dues 45,641 91,728 46,087 Interest Earned Member Late Charges 1,329 4,000 2,671 Fee Income 943 1, Tank Assessment Principal 3,132 22,120 18,988 Tank Assessment Interest ,210 9,262 Total Income 169, , ,857 Operating Expenses Accounting 5,800 0 (5,800) Bank Charges Director's Reimbursement 700 3,600 2,900 Fees & Licenses, Fines & Taxes 2,962 3, General Insurance 8,448 11,437 2,989 Legal 525 5,000 4,475 Maintenance Contract 30,949 96,680 65,731 Membership Dues Office Contract 10,000 30,000 20,000 Office Supplies & Expenses Postage and Delivery 589 1, Printing & Reproduction 539 1,700 1,161 Property Taxes (2) Routine Maintenance ,088 10,530 Snow Removal - 2,000 2,000 Utilities 5,126 13,000 7,874 Water Testing 1,313 4,950 3,638 Water Treatment 4,370 6,000 1,630 Web Page Capital Expenses Principal & Interest Plumas Loan 40,616 40, System Repairs 8,141 50,000 41,859 USDA Loan Application: Preliminary Engineering Report 19,153 25,000 5,847 Legal 653 5,000 4,348 Administration/Consulting 7,743 12,000 4,258 Depreciation - 38,000 38,000 Total Expenses 115, , ,393 Surplus / (Deficit) 54,084 - (26,535) SVMWC Board of Directors Mtg 11/13/10 Page 16 of 23

18 Water Operations Report September - October 2010 To: Board of Directors Date: November 9, 2010 From: John M. Collins, Operations Manager And SPB Utilities 1. Water System Compliance: The water system is currently meeting state and federal standards. There were no positive test results during September or October. We had three out of five samples exceed the lead and copper requirements. All samples exceeded the 12 hour non use time frame and sample invalidation was requested. The following samples were taken: Date Description Results 9/15/10 Monthly 1498 Christy Lane Absent 9/16/10 Triennial 5 sites Lead & Copper Sample invalidation pending approval from CDPH 10/13/10 Monthly 1498 Christy Lane Absent 2. Water Production Production Comparison To Last Year (Total in Million Gallons) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Individual Production (Total in Million Gallons) Well 1 Well 2 Horiz. Well Total January 291, ,000 1,076,970 1,667,970 February 280, ,100 1,044,290 1,617,390 March 240, ,500 1,215,030 1,707,530 April 109,000 98,400 1,208,540 1,415,940 May 103, ,338,220 1,441,520 June 2,674,000 85,700 1,156,050 3,915,750 July 2,567,000 2,522,800 1,153,160 6,242,960 August 1,986,000 2,907,700 1,046,990 5,940,690 September 1,423,000 2,790,300 1,039,410 5,252,710 October 1,228,00 642,400 1,067,610 2,938,010 November December SVMWC Board of Directors Mtg 11/13/10 Page 17 of 23

19 3. Operations and Maintenance Performed daily water supply readings. Performed distribution system reading and collected water samples. Performed month end meter reads. Prepared monthly production and dosage reports and submitted to office for submittal to Department of Health Services. Phase 2 6 Support. (1) Continue to work with Steve Brigman regarding next Phases. (2) Coordinated with Carson Pump and Inter Flow Hydrology regarding well rehab work. (3) Walk back lot line between Christy and Lanny with customers. (4) Work with Anne-Marie on USDA application. (5) Coordinate right of entries with Poulsen Property and Ski Corp. Conduct State Health inspection of new water storage tank and well houses. Replaced blown fuse at Well 1. Source of problem was SPPC phasing. Responded to five service calls: (1) 1490 Squaw Valley Road Service line leak under home. Referred contractor to leak location firm. (2) 1024 Lanny Lane Irrigation service leak. (3) 1812 Christy Lane Turn water off so house shut off could be replaced. (4) 1184 Lanny Lane Main line break at service box. (5) 1821 Washoe Drive Water in service box. USA Locates: (1) 1224 Lanny Lane Sewer line repair. (2) 1161 Sandy Way Install dewatering wells (3) 1161 Sandy Way Install heat pump. Intent to serve: (1) 1349 Sandy Way (2) 1726 Christy Lane Final Inspections (1) 1849 Washoe Drive Inspect Hot Tap (1) 1726 Christy Lane Attended May Board meeting. SVMWC Board of Directors Mtg 11/13/10 Page 18 of 23

20 Office Managers Report September October 2010 Date: November 9, 2010 To: Board of Directors From: Cory & Anne Marie Giese Office Managers Financial: Accounts receivable All of first billing of Assessment has been collected Accounts payable 1 st and 15 th of the month Customer Statements and Shut Off Notices Sent out 9/15 Answer customer billing and backflow questions. Department of Public Health: Prepared and submitted monthly reports to CA Dept of Public Health Board Meetings: Attended Annual Meeting and conducted directors election Attended 2 Neighborhood Meetings Prepared 11/13 meeting materials including, Treasurer s Report, Budget to Actual, USDA Timeline, and Office Manager s Report Miscellaneous: Updated Webpage Newsletter printing and mailing 11/4/10 Filing/archive company information USDA loan application consulting o Submitted Complete Application in Early September o Made several additions/modifications requested by USDA to application o Developed timeline for loan processing and construction o Inquired about interim financing for final engineering costs o Contacted RCAC about interim financing possibilities o Contacted Cathy at Plumas Bank about increasing our LOC to $300,000 SVMWC Board of Directors Mtg 11/13/10 Page 19 of 23

21 SVMWC USDA Timeline FY 10/11 FY 11/12 FY 12/13 USDA Shaw Board/Office Nov 2010 Application Approval Process Dec 2010 Jan 2011 Feb 2011 Mar 2011 Letter of Conditions Design Engineering/Approval (16 wks) Meet Conditions of loan Apr 2011 May 2011 USDA Final Engineering Review Placer County Review (8 wks) June 2011 Set New Rates for FY11/12 July 2011 Project out to Bid (July 1 30) Aug 2011 Contractor Response (Aug 15 30) Award Bid (Aug 1 15) Sept 2011 Close the Loan (4 wks) Oct 2011 Start Construction (Oct 1, 2011) Nov 2011 Construction Dec 2011 Winter Jan 2012 Feb 2012 Mar 2012 Apr 2012 Interest Payment Due 4/1/12 May 2012 Construction June 2012 July 2012 Aug 2012 Sept 2012 Oct 2012 Finish Construction (Date subject to weather) Principle and Interest Due 10/1/12 Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 Principle and Interest Due 4/1/13 May 2013 June 2013 SVMWC Board of Directors Mtg 11/13/10 Page 20 of 23

22 SVMWC USDA Timeline (With Interim Financing For Final Engineering) USDA Shaw Board/Office FY 10/11 Nov 2010 Application Approval Process Dec 2010 Jan 2011 Design Engineering/Approval (16 wks) Meet Conditions of loan Feb 2011 USDA Final Engineering Review Mar 2011 Letter of Conditions Placer County Review (8 wks) Apr 2011 May 2011 Project out to Bid (May 1 30) June 2011 Award Bid (June 1 15) Contractor Response (June 15 30) Set New Rates for FY11/12 FY 11/12 July 2011 Close the Loan (4 wks) New Rates In Effect July 1, 2011 Aug 2011 Start Construction (Aug 1, 2011) Sept 2011 Construction Oct 2011 Nov 2011 Dec 2011 Winter Jan 2012 Feb 2012 Interest Payment Due 2/1/12 / Mar 2012 Apr 2012 May 2012 Construction June 2012 FY 12/13 July 2012 Aug 2012 Principle and Interest Due 8/1/12 Sept 2012 Finish Construction (Date subject to weather) Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013 Principle and Interest Due 2/1/13 Mar 2013 Apr 2013 May 2013 June 2013 SVMWC Board of Directors Mtg 11/13/10 Page 21 of 23

23 Squaw Valley Mutual Water Company Water System Improvement Project Costs To Date as of 11/10/10 Master Water Plan/System Model $ 43, Phase 1 New Steel Tank $ 328, Phases 2 6 Paid to Date Engineering (PER) Shaw $ 93, Well Testing InterFlow Hydrology $ 2, Consulting/Admin Collins $ 9, Giese $ 2, Dresselhaus $ Permits TTSA $ 1, SVPSD $ Easement Access/Rent Poulsen/SVP $ 4, Legal Best, Best & Krieger $ Total: $ 114, Contract Remaining Well Testing InterFlow Hydrology $ 4, Carson Pump LLC $ 37, Carson Pump LLC $ 6, Carson Pump LLC $ 6, Admin/Consulting Collins/Giese $ 4, Total: $ 59, Grand Total: $ 546, SVMWC Board of Directors Mtg 11/13/10 Page 22 of 23

24 Proposed Policy for Members connecting to new water service boxes and meters. Revised per discussion at July 24, 2010 meeting As new, larger mains are put in the street, for ease of access during breaks, general maintenance, and improved fire flow from the hydrants, new water service boxes with meters will be put in the street as well. For a large portion of the Mutual Service Area, the water mains are to the rear of the lots and that is where the water service boxes are found as well as the where the connections are made to the houses. The implication is that members will need to move their connections, at their own expenses, from the back lot line to the front. To smooth this transition, the existing rear water line will continue to operate for five years after the completion of the new line in the street. The policy for connection to new box and water main is as follows. 1. When a house is sold the owners will need to connect to the new service box. 2. When a house is remodeled, the owners will need to connect to the new service box. Remodeled is defined to be when a building permit is issued and the Operations Manager needs to sign a will serve letter. 3. All new construction will need to connect to the new service box (per existing policy). 4. Homeowners who do not fit into one of the three categories above have the following options in order to connect within five years after the completion of the new main lines. Develop a new connection for the house from the new service box by oneself or with own plumbing contractor. It can be either to the old rear connection at the house, or to a new house connection to the front. Working with a number of neighbors, hire a construction firm to do a number of these new connections at one time, thereby reducing the set-up costs for bringing in machinery to dig the trenches. Those involved would share the cost. The Mutual encourages such an approach, but will not manage it. The Mutual will disseminate an approved vendor list. A certified plumber or Mutual contracted person is the only one allowed to tap into the main. If it is the Mutual contracted person, the member will be billed at cost. MWG July 19, 2010 Revised July 26, 2010 SVMWC Board of Directors Mtg 11/13/10 Page 23 of 23