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04-18-91MINUTES REGULAR BOARD MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT APRIL 18, 1991 The Board of Directors of the South Tahoe Public Utility District met in a regular session, April 18, 1991, 3:00 PM, City Council Chambers, 1900 Lake Tahoe Boulevard. The Board of Directors met in Execu- tive Session pursuant to Government Code Section 54957.6/1991 Management MOU's - Instruct negotiator; Associate Engineer/Surveyor Position. 3:00 - 4:00 PM EXECUTIVE SESSION BOARD OF DIRECTORS: Chairman Sinclair, Directors Mason, Pierini, Mosbacher, Onysko ROLL CALL STAFF: Baer, Solbrig, Fischer, Mamath, Brown, B. Eppler, Hoggatt, Gilbert, Swain, Rudokas, Attorney Sare GUESTS: Gary Midkiff/So. Tahoe Refuse Co., Kerry Miller & Keith Gottschalk/City of So. Lake Tahoe, Keith Klein/City Council, Brian Taylor/Tahoe Daily Tribune, Jeff Laroche, Jeff Tillman None COMMENTS FROM AUDIENCE Jeff Laroche reviewed his request to delay payment for connection fees on his building. REQUEST TO APPEAR BEFORE BOARD: JEFF LAROCHE Discussion followed regarding policies, approvals, allocations, limited capacity, expansion, fees, and payments. It was the consensus of the Board to continue the present payment plan the District has for sewer/water connection fees (which would deny Jeff Laroche's request). No Board Action. ST055390 REGULAR BOARD MEETING MINUTES - APRIL 18, 1991 PAGE - 2 It was the consenus of the Board to remove Action Item No 3/1991 Management MOU's from the Agenda. CORRECTIONS TO AGENDA OR CONSENT CALENDAR Moved Pierini/Second Mason/Passe~ Unanimously to approv~ Consent Calendar as presented: CONSENT CALENDAR 1) Approved Regular Board Meeting Minutes of March 21, 1991. 2) Approved E1 Dorado Water Purveyors Association Resolution 91-1. 3) Authorized response under signature of Chairman Sinclair to E1 Dorado County Water Agency's April 5, 1991 Memo: Report on Current Activities, Item 1 & 9. 4) Award Bid #90-91-13 to low bidder, Jackson Ford-Mercury in the amount of $14,791.42 for new 1991 1/2 Ton 4 x 4 Pickup Truck for the Pump Station Operators. 5) Approved Amendment to the Legal Services Contract: Dale M. Sare. ITEMS FOR BOARD ACTION Director Mason removed himself from the dias due to a conflict of interest. Bob Eppler reported there was a meeting with the Tahoe Refuse Co. this morning and requested Gary Midkiff come forward and outline the Refuse Co.'s plans to elimi- nate the present drainage problem which included the purchase of SOUTH TAHOE REFUSE COMPANY: OUTSIDE STORAGE AREA ROOF ST055391 REGULAR BOARD MEETING MINUTES - APRIL 18, 1991 PAGE - 3 four (4) sewer units to accommo- date the drainage of treated run- off water and an outside storage area roof. SOUTH TAHOE REFUSE COMPANY: OUTSIDE STORAGE AREA ROOF (continued) Gary Midkiff requested the fol- lowing: 1) Letters of support from the District to obtain permits from the various agencies to accomplish their plans for an outside storage area roof and outside drainage area; and 2) Withdraw the Disconnect Notice. Moved Pierini/Second Mosbacher/ Mason Abstained/Passed to give a time extension of the Disconnect Notice to 10/15/91. Presented by Director Pierini, who said it was necessary to review & deal with the irrigation issues regarding Bijou Golf Course now--not at a later date. BIJOU GOLF COURSE WATER SERVICE Manager Baer reviewed the informa- tion on the graph submitted to the Board, showing the 1991 Stateline Zone water supply vs. water demand and how those figures related to the water use at the Bijou Golf Course and Park. Mary Rudokas elaborated on the report she prepared, showing a summary of projected water usage during certain times of the summer months. Discussion followed regarding gallon usage, daily demand, irrigation demands/schedules, the electrical system, a sanitary seal, installation of pump, change- of-use, cost and fees. ST055392 REGULAR BOARD MEETING MINUTES - APRIL 18, 1991 PAGE - 4 Director Sinclair stated he felt the District should abandon the Bijou Well and sell it to the city. BIJOU GOLF COURSE WELL SERVICE (continued) Keith Gottschalk, City's Park and Recreation Director, stated the City was willing to discuss this matter with District staff and come to an equitable agree- ment with the District on the use of Bijou Well water. Directors Onysko and Sinclair stated they did not feel the District should be in the business of providing non- potable water. Moved Onysko/Second Sinclair/ Pierini, Mosbacher, Mason voted No/Defeated for the Board to set a policy to direct staff to either sell the well to the City for an equitable dollar amount or cap the well for future use. Moved Pierini/Second Mason to direct staff to negotiate with the City of South Lake Tahoe for the purchase and/or long-term lease of Bijou Well as it is today. Discussion followed. Director Pierini withdrew his motion. Moved Onysko/Second Mason/Onysko, Sinclair Voted No/Passed to direct staff to negotiate disposition of the Bijou Well with the City of South Lake Tahoe. A) Moved Onysko, Second Mason/ Mosbacher, Sinclair Voted No/ Passed to reclassify the present job title as a Junior Engineer position and authorize funds to advertise the position at a specific salary. AUTHORIZE STAFF TO ADVERTISE TO THE PUBLIC FOR PRESENT MANAGEMENT POSITION ST055393 REGULAR BOARD MEETING MINUTES - APRIL 18, 1991 expanded water supplies and they viewed the College Well problem as an O&M problem. Payment of the loan was also discussed. STAFF REPORTS (continued) He also reported on the EDWPA "Day-In-The-Capital" Meeting. Attorney: Attorney Sate reported on the following: 1) 2) 3) 4) Alpine County Fish Agreement Amendment; Ford Litigation; League to Save Lake Tahoe/1992 Allocations; District Self-Insurance Plan and Funding. He requested direction from the Board whether or not to pursue this matter. It was the consensus of the Board to direct staff to pursue the self-insurance concept. Proqram Manaqers: Jim Hogqatt submitted a written report to the Board on the Emer- gency repairs to the gravity sewer line for the Tahoe Keys Force Main. Diane Gilbert reported on the Chamber of Commerce Meeting and the information she distributed to the participants regarding sewer units, the time-line for expansion and a graph on the water situation. Other items discussed at the Chamber of Commerce Meeting: 1) Plans to invite the new A.G. to Tahoe; 2) Review of League to Save Lake Tahoe membership; and 3) Formation of an Advisory Committee to South Tahoe Public Utility District. PAGE - 7 ST055394 REGULAR BOARD MEETING MINUTES - APRIL 18, 1991 PAGE - 8 Director Mosbacher noted informa- tion which was discussed at the EDWPA meeting and reported on the County Road Dept./potential fee increase for right-of-way charges to Public Utilities. STAFF REPORTS (continued) Barrie Fischer distributed a report on the property tax administration by the County which described the methodology they used to compute the amounts they are going to charge the District. 4/30/91 - 10:00 AM, TTSA Truckee River Operating Agree- ment. 5/02/91 - 4:00 PM, Regular Board Meeting (Public Meeting) 5/16/91 - 4:00 PM, Public Hearing/ 1991-92 Sewer & Water Budgets 8:00 PM, Public Hearing/ 1991-92 Sewer & Water Budgets NOTICE OF FUTURE MEETINGS 6:45 PM ADJOURNMENT NAT ~INCLAIR, CHAIRMAN OF BOARD SOUTH TAHOE PUBLIC UTILITY DISTRICT ATTEST: PAT MAMATH, CLERK OF BOARD SOUTH TAHOE PUBLIC UTILITY DISTRICT ST055395 REGULAR BOARD MEETING MINUTES - APRIL 18, 1991 PAGE - 5 B) Moved Onysko/Second Pierini/ Passed Unanimously to place an Ad for the position with the following qualifications: AUTHORIZE STAFF TO ADVERTISE TO THE PUBLIC FOR PRESENT MANAGEMENT POSITION (continued) 1) Graduate engineer 2) 3-4 minimum engineering experience 3) Ability to obtain a profes- sional license within 2-years or prior possession of same 4) Construction experience 5) Water & wastewater experience C) Moved Onysko/Second Pierini/ Passed Unanimously to advertise the job opening for the Junior Engineer position with a salary range of $3,000-3,700/Mo., de- pendent upon qualifications. Director Mason removed himself from the dias due to a possible conflict of interest. FINDINGS AND CONDITIONAL APPROVAL OF EMBASSY SUITES SEWER UNIT TRANSFERS Attorney Sare read aloud the findings (A-P) the Board needed to adopt to finalize the approval of Embassy Suites Sewer Unit Transfers. Discussion followed regarding the Lookabaugh property, Weidman memo, Embassy Suites, & transfer of sewer units. A) Moved Onysko/Second Mosbacher/ Mason Abstained/Passed to adopt the findings as presented by Counsel. (The "Findings" (A-P) within the 4/18/91 Memo become a part of these minutes by reference herein as Attachment A). Attorney Sare read aloud the conditions (A-K) the Board needed to adopt to finalize the approval of Embassy Suites Sewer Unit Transfers. ST055396 REGULAR BOARD MEETING MINUTES - APRIL 18, 1991 PAGE - 6 Discussion followed regarding the Lookabaugh property, Wediman memo, Embassy suites, & transfer of sewer units. FINDINGS AND CONDITIONAL APPROVAL OF EMBASSY SUITES SEWER UNIT TRANSFERS (continued) A) Moved Onysko/Second Mosbacher/ Mason Abstained/Passed to authorize Staff to issue a Sewer Permit based on compliance by Embassy suites and City of South Lake Tahoe--subject to conditions listed A-K, as pre- sented by Counsel. (The "Conditions (A~K) within the 4/18/91 Memo becomes a part of these minutes by reference herein as Attachment A). 5:55 PM MEETING BREAK MEETING RESUMED PAYMENT OF CLAIMS 6:08 PM Moved Pierini/Second Mason/ Passed Unanimously to approve payment in the amount of $521,535.81. Director Sinclair referenced correspondence from John Cefalu. It was the consensus of the Board this correspondence be part of the minutes as Exhibit B. BOARD MEMBER REPORTS Discussion followed regarding future public correspondence to the Board. Attorney Sare advised the Board to set guidelines for the future regarding restrictions on "Board Member Reports". Director Mason informed the Board he had a conflict with the May 30th Special Meeting to adopt the Budget and requested a meeting date change. Manaqer: Manager Baer reported on the County Water Agency Meeting held on 4/15/91, to discuss converting the $350,000 loan to a grant. The request was denied because the County Water Agency Policy offers grants for STAFF REPORTS ST055397 EXHIBIT A SOUTH TAHOE PUBLIC UTILITY DISTRICT MEMORANDUM DT: April 18, 1991 TO: Board of Directors FR: John Weidman RE: Completion of Embassy Suites Transfer The attached documents are necessary for the Board to take action under the provisions of Ordinance No. 403, except where relief has been granted or conditions have been established. The Board needs to authorize the staff' to issue a permit for Embassy Suites 502 Sewer Units and make the following findings and conditions. The provisions of Ordinance No. 403 have been complied with except where relief has been previously granted and subject to special conditions in this authorization. Specifically, the following conditions in Section IV of Ordinance No. 403 have been complied with, except where relief has been given as noted, or the condition is applicable, or a special condition has been authorized as set forth: 1. The Board should make the following compliance findings: No increased annual flow and strength - relief granted. There is no increased flow and strength from other commercial parcels. Complete restoration of the secondary parcels is inapplicable since Ordinance No. 403, Section D. is applicable and the secondary parcels are being utilized for public improvements. 1977, et al., Lahontan Cease and Desist Order is no longer applicable. 502 sewer units are required for the Embassy Suites parcel. The three sewer units on the Lookabaugh parcel shall not revert to the District - Section III D. of Ordinance No. 403 is applicable since the parcel is being utilized for public improvements and ST055398 partial transfer is thus permitted. The District has notified the City of South Lake Tahoe of the foregoing provisions compliance. The City of South Lake Tahoe has evidenced compliance of Embassy Suites with its General Plan. H. The project complies with City General Plan. Any sewer assessments on the secondary parcels have been paid in full or funds deposited with the Court to pay the same upon completion of eminent domain proceedings. Any property taxes on the secondary parcel have been paid in full or funds deposited with the Court to pay the same upon completion of eminent domain proceedings. K. Ail sewer service charges are current. Ail liens on the secondary parcels have been paid in full or funds deposited with the Court to pay the same upon completion of eminent domain proceedings. Lateral sewer connections for the secondary parcel have been removed, plugged and sealed except those that the City has agreed to remove, plug and seal this summer. Water service utilities for the secondary parcel have been disconnected except those parcels the City has agreed to disconnect this summer and except these wells which will be utilized for Redevelopment Project No. 1 wetlands and landscape water. The only damaged parcel from sewer units are transferred is the Silver Slipper parcel. The provisions of Ordinance No. 403, Section III D. apply, no restoration covenant is required since this parcel is being utilized for public improvement. Any City transfer of Sewer Ordinance has been complied with. The conditions for issuance of a new sewer permit for the Embassy Suites parcel pursuant to Ordinance No. 300 as amended by Ordinance No. 359 have been complied with. An application from the Embassy Suites parcel owner is on file with the District. 2 ST055399 The City of South Lake Tahoe Redevelopment Agency has on file an application for cancellation of the secondary parcels sewer permits. The Board should authorize the staff to issue a sewer permit to the owner of the Embassy Suites parcel subject to the following conditions: The transfer fees shall be payable under Ordinance No. 432 at $1,330 per sewer unit will be paid in full within 30 days from the date of this authorization. B. Ail sewer service charges are current. Ail lateral sewer service connections for secondary parcels are removed, plugged and sealed. Ail water service connections are disconnected for the secondary parcels except wells which will provide for Redevelopment Project No. 1 wetlands and landscaping water. Ee The 18 previously unreported sewer units may be transferred pursuant to relief granted under Ordinance No. 409. Fo The City of South Lake Tahoe Redevelopment Agency can be recognized as the owner of all secondary parcels pursuant to relief granted, provided, however, that an indemnity agreement for any claims of secondary parcel record owners shall be executed by the Redevelopment Agency and on file with the District before the issuance of a sewer permit to the Embassy Suite owners. Ge The relief granted applies only to Embassy Suites parcel. He The Lookabaugh parcel destructed and removed. improvements have been The sewer permit will include as conditions all representations and agreements in the Embassy Suites application and subject to all conditions in the application. Jo The City Attorney has recorded a Notice of Transfer with the E1 Dorado County Recorder, describing the primary parcel and secondary parcels by Assessment Parcel Numbers and location, and the representation 3 ST055400 that the secondary parcels will be used for public improvements. Ko The City and owner of Embassy Suites agree that $1,330 per sewer unit transfer fee is the reasonable and estimated cost to the District. ST055401 SOUTH TAHOE PUBLIC UTILITY DISTRICT APPLICATION FOR TRANSFER OF SEWER UNITS PERMIT PRIMARY PARCEL OWNER OF RECORD: KOAR - Tahoe Partners, L.P. ("KOAR"), a California limited partnership MAILING ADDRESS: 555 South Flower Street, Suite 2424 Los Angeles, CA 90071 ATTN: Steven C. Kenninger LOCAL MAILING ADDRESS: P.O. Box 2176 Stateline, NV 89449 Telephone (916) 541-7013 PRIMARY PARCEL NUMBER AND ADDRESS: AP 29-190-32 4130 Lake Tahoe Boulevard South Lake Tahoe, CA 96150 ATTENTION: KOAR - Tahoe Partners, L.P. - Steven C. Kenninger TRANSFER OF SEWER UNITS SECONDARY PARCEL 502 Sewer Units from the following Secondary Parcels: ORIGINATING PREVIOUS SEWER UNITS SEWER UNITS APN OCCUPANT/OWNER ON SITE TRANSFERRED 27-072-34 Cavalier Motel 31 31 27-072-19,20 Tahoe Style 27 27 Motel 27-072-09 Two Guys 13 13 From Italy 27-081-02 Snowbird Motel 53 53 27-081-05 Pine Ridge 83 83 Motel 27-081-06 Chippewa Motel 27 27 1 RECEIVING APN 29-190-32 29-190-32 29-190-32 29-190-32 29-190-32 29-190-32 ST055402 29-150-08 Big 7 Motel 24 24 29-190-32 29-150-09 Bonanza Motel 31 31 29-190-32 27-064-17 Armstrong 20 20 29-190-32 (1,2,3) Commercial 27-052-03 Echo Motel 43 43 29-190-32 27-061-02 Tahoe Waterfront 128 128 29-190-32 Club 29-332-07 Silver Slipper 17 17 29-190-32 Motel 27-072017 Lookabaugh 5 5 29-190-32 (Chiro. Ofc.) 502 502 The secondary parcel owner has on file with the District an Application for Transfer of Sewer Units Secondary Parcel, dated April 1, 1991, a copy of which is attached'and incorporated in this application by reference. SECONDARY PARCEL (TRANSFERRING PARCEL) OWNER OF RECORD: City of South Lake Tahoe Redevelopment Agency MAILING ADDRESS: 1000 Ski Run Boulevard South Lake Tahoe, CA 96150 The fixture units and sewer units which total 502 sewer units for the primary parcel are only for those facilities shown on the Plans delivered to the District by Embassy Suites Resorts representatives Gary Midkiff and Sam Toub on May 4, 1990. Bob Eppler and Tim Rieger of the District staff completed a required fixture units and sewer units count from these plans which total 502 sewer units and are allocated as follows: FIXTURE UNITS SEWER UNITS 400 Suites + 1 Extra Bath Swimming Pool and Spa Restaurant (166 Seats) Deli (28 Seats) Bar & Lounge Washing Machines 401 3 13 6 5 8 ST055403 Breakfast Bar Area 2 Bar Sinks 2 Prep Sinks Mens Restroom (Public) 5 Water Closets 5 Urinals 6 Lavatories Womens Restroom 10 Water Closets 6 Lavatories Mens Locker Room (Private) 2 Water Closets 2 Urinals 3 Lavatories Womens Locker Room (Private) 3 Water Closets 3 Lavatories 38 Floor Drains x 4 2 Janitor Sinks 3 Drinking Fountains Swimming Pool and Spa Area 1. Shower Mens Restroom (Private) 1 Water Closet 1 Lavatory Womens Restroom (Private) 1 Water Closet 1 Lavatory 2 6 25 25 12 50 12 6 6 3 9 3 152 4 3 3 1 3 1 328 - 5 + 66 436 502 SEATING Seating capacity for the Breakfast Bar Area (376 seats) were not counted on condition that only Breakfast be served to registered hotel guests during the a.m. hours of any given day and that the restaurant remain closed during correlating a.m. hours. Any other meals or Deli services will not be served in the Breakfast Bar Area. ST055404 GREASE TRAPS Grease interceptors will be sized pursuant to Uniform Plumbing Code. The estimated approximate sizes are: Main Restaurant Breakfast Bar Area 3,873 Gallons minimum 750 Gallons minimum WATER CONSERVATION MEASURES Flow from Lavatory Faucets, Sink Faucets, and Showerheads shall be 3 G.P.M. maximum and stamped from factory stating same, or the manufacturers certify the same. All Water Closets and Urinals shall be 1.6 G.P. flush maximum. Fountains shall be recirculating type. Relief from the following provision of Ordinance No. 403, Section IVA has been granted by the Board of Directors on April 4, 1991. No transfer of a sewer unit shall increase the estimated measurement of flow and strength of wastewater discharged to the treatment facilities per sewer unit transferred. Relief from the following provision of Ordinance No. 409 as applicable to the Parcels and Number of Sewer Units shown below has been granted by the Board of Directors on April 4, 1991. Sewer units acquired pursuant to the provisions of this ordinance shall not be transferable to any other parcel of land other than that to which it is issued under the terms of this ordinance. At such time, if any, that any sewer units are transferred from the parcel to which change in use or previously unreported sewer discharges are issued, the sewer units so issued shall revert to the District. ORIGINATING PREVIOUS APN OCCUPANT/OWNER ON SITE 27-072-34 Cavalier Motel 2 27-072-19,20 Tahoe Style Motel 6 27-072-09 Two Guys From Italy 2 27-081-06 Chippewa Motel 3 29-150-08 Big 7 Motel 1 4 SEWER UNITS ST055405 29-150-09 Bonanza Motel 3 29-332-17 Silver Slipper Motel 1 The Board of Directors, on April 4, 1991, deemed the City of South Lake Tahoe Redevelopment Agency the owner of sewer units for purposes of transfer where it has instituted eminent domain proceedings against any parcel whose sewer units are subject of this application, has secured a Prejudgment Order For Immediate Possession and deposited the probable compensation, and where the record owner of the parcel has withdrawn the deposit. The City of South Lake Tahoe Redevelopment Agency shall hold District free and harmless from any claims of record owners arising out of the transfer. The Board of Directors, on April 4, lg91, has authorized the transfer be completed under Ordinance No. 432 when effective and to the extent effective ($1,330 per sewer unit). This applicant shall pay the transfer fees within 30 days from Board of Director findings for approval. This applicant acknowledges the relief granted by the Board of Directors on April 14, 1991, applies only to the 502 sewer units subject of this application. The sewer service charges shall be paid for all sewer units subject of this application when the same are due and owing and at the rates per sewer unit charged all customers in the District, regardless of whether the units are connected or when discharge to the sewer system commences. The Lookabaugh property will be destructed commencing on or about May 1, 1991, and for public improvements. Only 5 sewer units from this property are subject of this transfer. The representations in this application shall be special conditions of transfer. KOAR represents and/or agrees: 1. KOAR is the legal owner of record of the parcel of real property referred to in this application. A copy of the Deed of Record is submitted with this application. 2. The number of plumbing fixtures specified will not be increased, the location of the plumbing fixtures specified on the construction plans submitted with this application will not be 5 ST055406 changed, and the sewer unit use specified in this application will not be increased, without an amended application and an amended permit issued therefor. 3. In the event of any violation of representations and agreements in this application or conditions in any permit issued pursuant thereto, the South Tahoe Public Utility District may secure Court order requiring construction, occupancy and use of the parcel of the real property to cease until there is compliance with said representations and agreements. 4. All attorney fees, Court costs, administration, and inspection charges incurred by the District in connection with securing compliance with said representations and agreements in this application and any permit issued shall be assessed as charges against said parcel of real property. 5. The legal owner of said parcel shall be responsible for all acts performed by the owner or his agent in connection with the application and permit issued pursuant thereto. 6. The representations and agreements in said application and any permit issued pursuant thereto shall be binding upon the assigns and successors of the legal owner. 7. All of the provisions of any ordinance applicable to the entire sewer service area of the South Tahoe Public Utility District now in effect, or hereinafter in effect, or hereinafter amended, regulating the use of public and private sewers, the installation of sewer laterals and public sewer main extensions, providing for the employment of a sanitary inspector, providing permits and fixing fees for the installation of sanitary laterals and regulating plumbing, drainage and sewering in the South Tahoe Public Utility District shall be complied with prospectively on said parcel of real property. 8. After rough plumbing on the premises has been completed, there shall be no further construction which would prevent rough plumbing inspection until the District staff has inspected the rough plumbing and verified compliance with the application and permit issued pursuant thereto. 9. The premises constructed on the parcel of real property shall not be occupied after final inspection by the City and/or County Building Department until the District staff has inspected the premises and verified the plumbing fixtures and location thereof are as specified in the construction plans, the application, and permit issued pursuant thereto. ST055407 APR 18 '91 !0:48 KOAR Datm~: April 17, 1991 TAHOE PARTNERS, L. P - , California llmi=8~ p&~nerehip By: EANEEOEOAR-TAHOE, INC. s~even C. Kanninge~} vice preside~ STATE OF ~ALI~ORNiA COUNTY OF LOS ANGELES )sa. On {% i. , 19gl, before me, a no:sty public in and personally known ~o me (or proved :o me on the basis of saCiafacto:y evidence) to be :he person(e) whaee name(s) is/are subacribe~ to the wi=bin inetrummnt and amknowledged to me =ha= he or she exmcu=ed the mame in the mapami=y(ies) WITNESS my han~ and offioial meal. '( Seal ) ] (~11'"'~.~ NOTARY I~UBLtC - CALIFORNIA ST055408 EXHIBIT B JOHN N. CEFALU P.O. BOX 778 SOLrTH LAKE TAHOE, C.~. 95705 April 15, 1991 Chairman Nat Sinclair and members of the Board of Directors South Tahoe Public Utility District Chairman and Boardmembers, Due to a prior committment I am not able to present my remarks to the Board in person, therefore I have chosen to communicate my concerns in writing. In a recent newspaper article which discussed the purpose and intent of this meeting I was impressed that the Board saw fit to at least alert the community of what may be coming. Much different than prior Boards who often discouraged open discussion of sensitive subjects, for fear of community reaction. Those same boards committed themselves to conditions imposed by various agencies which were unreasonable and extremely expensive, Without carefully analyzing their implications and costs. I sympathize with this board, who must now pick up the pieces. To coin the Chairman's phrase, "pay me now or pay me later" may have a ring to it, however, it is fact that this community has been paying dearly for many years. We have and continue to pay for the extravagence and waste of this District for those same years. The money that has been squandered in legal costs, consultant fees, engineering miscalculations, not to speak of salaries and wages of employees increasing without regard or consideration for the ratepayers of this community, will not be taken lightly. In case you are not aware, this community is reeling from the economic pinch as well as a drought condition which has caused a severe downturn in the local economy. From my recent experience, a number of businesses have closed and many more are on the verge. It is unreasonable that this community should bear the full brunt of the District's financial dilemna. I expect that the South Tahoe Public Utility District should examine its operation and staffing very carefully as well as hold the line on wages, to determine where costs savings may be made, before any consideration is given to raising fees. When my business suffers from these economic conditions, I must first focus on reducing staff, the largest expense in my business. Labor is yours as well and ! expect you to do the same. Sincerely, JOHN N. CEFALU -- U -- ST055409 Date: BOARD MEETING GUEST SIGN- IN SHEET: (please print) PHONE NUr~IBER: NAME: ADDRESS' NOTE: COMPLETION OF THE ABOVE INFO~TION IS VOLUNTARY AND NOT A PRECONDITION FOR ATTENDANCE. ST055410