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05-07-92 MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT MAY 7, 1992 The Board of Directors of the South Tahoe Public Utility District met in a regular session May 7, 1992, 4:00 PM, City Council Chambers, 1900 Lake Tahoe Boulevard. BOARD OF DIRECTORS: Chairman Pierini, Directors Mason, Onysko, Mosbacher, Wallace ROLL _CALL STAFF: Baer, Solbrig, Garton, Miller, Swain, Schrempp, Sieben, Brown, R. Johnson, Hussmann, Hydrick, Hoggatt, Rudokas, Twomey, Hrbacek, Gilbert, Inglis Attorney Sare GUESTS: Brian Taylor/Tahoe Daily Tribune, Keith Klein/City Council, Dale Coulam, Danny G. Lukins, Brian Thomas, Bob Persson/Lakeside Park Assoc., Charlie McDermid, Lew Feldman, Ty Baldwin, Teri Jamin, Mark Zacovic/ Lake Tahoe city College, Judy Von Klug/ Redevelopment Manager, city of SLT Danny Lukins/Lukins Water Co., requested the Board establish a written policy regarding fire protec- tion which would involve interties between the various water systems in the community. He felt a policy was needed for the general welfare of the public. He specifically requested the District leave the intertie open which existed between the two water companies until his company was able to replace two wells he was required to close down. REQUESTS TO APPEAR BEFORE BOARD After discussion, it was the consensus of the Board to refer this item to staff and a Board committee for further research. Dale Coulam, representing Mr. Ledbetter, gave the history of Mr. Ledbetter's property regarding water service charges/connections and water usage. He asked the Board to resolve the issues with a thorough investigation, in the hopes of mutual agreement and offered to meet with staff in a Workshop. ST055082 REGULAR BOARD MEETING MINUTES - MAY 7, 1992 PAGE - 2 Discussion followed with comments from Bob Eppler verifying the water usage on the Ledbetter property. REQUESTS TO APPEAR BEFORE BOARD It was the consensus of the Board to refer this item to staff to respond to Mr. Coulam's questions in writing for further investigation into (1) why the original meter was installed, (2) why it is in now, and (3) why the District might consider putting a meter on the 2" (residential) water line. Further, Mr. Coulam will be invited to a Board committee meeting to review staff's written response. None Director Onysko requested Consent Item No. S/Customer Service Manager Position, be moved to the end of the Action Calendar. COMMENTS FROM THE AUDIENCE CORRECTIONS TO AGENDA OR CONSENT CALENDAR Moved Mosbacher/Second Mason/Passed Unanimously to Approve Consent Calendar as Amended: CONSENT CALENDAR 1) Approved Regular Board Meeting Minutes of April 16, 1992; 2) Accepted the EPA share of a grant increase in the amount of $5,714 by authorizing execution of the grant amendment by Manager Baer; 3) Adopted Resolution No. 2562/ Declaring the month of May, 1992 as Water Awareness Month; Authorized two-week water dis- connection procedures on APN 27-151-301 (3661 Birch Avenue); 5) Authorized sewer disconnection procedures for accounts on the accompanying list. The list becomes a part of these minutes by reference herein as Attachment 1; 6) Adopted Resolution No. 2561/ Authorizing Application to the Director of Industrial Relations, State of California for a Certif- icate of Consent to Self-Insure Workers' Compensation Liabilities; ST055083 REGULAR BOARD MEETING MINUTES - MAY 7, 1992 PAGE - 3 7) Authorized letter to Department CONSENT CALENDAR of Health Services for an exemption (continued) extension to operate the College Well for 4 additional months; 9) Approved going to bid for: A) 365 Dry Tons-Chlorine B) C) D) 237 Dry Tons-Caustic Soda 22,000 Gallons-Sodium Hypochlorite 14,000 pounds-Zinc Orthophosphate 10) Awarded 1992 Grazing Lease/Alpine County to the highest, responsible bidder: Melvin F. Springmeyer; 11) Authorized staff to negotiate contract option with Allied Colloids for the first one-year extension of the present Dry Polymer Contract. 4:55 PM PUBLIC HEARING Chairman Pierini opened the Public Hearing at 4:55 PM. Finance Officer Garton, presented the 1992-93 Fiscal Year Budgets for the Water Enterprise Fund and Sewer Enter- prise Fund. She said no plans for rate hikes were anticipated, as service charges were adequate to cover the presently planned operating expenses. Garton, used graphs & visual charts to explain the planned expenditures and revenues. Ty Baldwin commended Finance officer, Rhonda Garton, on a job well done. Chairman Pierini and Director Wallace responded to Mr. Baldwin's comments regarding long-range planning. Discussion followed regarding revenue-generated expansion vs. revenue-depletion expansion, grants, tunnel project, in-house studies, consultant costs/salaries and the related alternatives, on-going replace- ment of water lines, today's economy --local & nation-wide, and AB 3214. 1992-93 FISCAL YEAR BUDGETS: WATER ENTERPRISE FUND AND SEWER ENTERPRISE FUND OPEN HEARING STAFF REPORT PUBLIC COMMENTS ST055084 REGULAR BOARD MEETING MINUTES - MAY 7, 1992 None. (Numerous questions and comments were covered at the Budget Public Hearing held on 5/4/92). chairman Pierini closed the Public Hearing at 5:30 PM. 5:30 PM PAGE - 4 PUB?JTCMR. ARING CONTINUED BOARD MEMBER COMMENTS CLOSE PUBLIC HEARING REGULAR MEETING RESUMED ITEMS FOR BOARD ACTION Presented by Richard Solbrig. He reviewed the number of needed sewer units and the District's will-serve letter for water and sewer units. LAKE TAHOE COMMUNITY COLLEGE CHILD CARE CENTER Mark Zacovic representing the College was present. He answered questions regarding the use of low-flow toilets for the project and the College's construction schedule. Moved Mason/Second Mosbacher/Passed Unanimously to approve the District's will-serve letter to Lake Tahoe Com- munity College For water & sewer connections. (Chairman Pierini removed himself from the dais due to conflict of interest. Vice Chairman Onysko presided over this portion of the meeting.) FANTASY INN AT SONORA AVENUE AND HIGHWAY-50 Presented by Richard Solbrig, who reported staff's recommendation was to assess Fantasy Inn 2 sewer units for each room. He pointed out key items in the District's Ordinance regarding schedule of units for motels, and commercial establishments. He said staff's recommendation was based on expected wastewater flow rates due to the type of spa/tub that will be filled, used, and emptied after use. Solbrig also reviewed the K.B. Foster Engineer's calculations for the proposed construc- tion, maximum day flows, irrigation demands, and cost of meters. Lew Feldman, representinq Fantasy Inn, reviewed the history and background regarding the plumbing fixtures to be ST055085 REGULAR BOARD MEETING MINUTES - MAY 7 1992 used in each room and voiced his dis- agreement with the assessment of two sewer units per room instead of one sewer unit per room and the related increase in costs. PAGE - 5 FANTASY INN AT SONORA AVENUE AND HIGHWAY-50 (continued) Discussion followed regarding connec- tion fees/payments, Embassy suites water usage, Fantasy Inn tub size (90 gal.), monitoring, and peak-day flow concepts. Director Onysko felt the District was grossly underestimating Fantasy Inn's necessary sewer units. According to Onysko's calculations, (the same ones used for Embassy suites), the District should be charging Fantasy Inn for 250 sewer units (3.5 sewer units per room), not 112 sewer units. Charlie McDermidL Vice-President of So. Lake Tahoe Lodging Assoc., reported their Board of Directors unanimously passed the following motion regarding the Will-Serve Letter: "We are opposed to any exorbitant or unreasonable fees, including hook-up fees, which would discourage lodging properties in particular, and all businesses in general from upgrading, de- veloping or redeveloping their properties in So. Lake Tahoe." He hoped the Board would see a way to reduce the fees indicated in the draft of the will-serve letter and asked the Board to analyze this matter from a business perspective, as well as a technical point of view. Director Mason stated we had an antiquated product, and the way to keep up with the demand is charging everyone their fair share for service and connection fees. Director Wallace stated all new developers become a part of our community--but how do we make it fair?--and that's what we are trying to do today. Attorney Sar9 emphasized, again, according to the law-- everyone had to pay their fair share. ST055086 REGULAR BOARD MEETING MINUTES - MAY 7 1992 Chris Strohm~ Chamber of Commerce, recognized the needs of the District, but voiced his objections to the pro- posed fees for Fantasy Inn and future new construction. He felt Fantasy Inn was being penalized by the District. ~eith Klein~ City Council, said the procedure of assessing sewer units was not fair as it is done now. Klein said there is a perception by some people in the community that the Board is not being as fair as it could be--that there is deserved mistrust--according to some. He urged the Board to cooperate, not delay, and take action at this meeting. He stated that by cooperating, the Board would get cooperation back, and their image would improve. ~ said he appreciated the Board's efforts and action regarding fees imposed on Embassy Suites--to pay their fair share. He urged the Board to delay their decision on this item and also look-out for the rate payers in general. He said it seemed uncertain, at this time, what equity Ks for Fantasy Inn. PAGE - 6 FANTASY INN AT SONORA AVENUE AND flIGHWAY-50 (continued) Lew Feldman said construction was planned for the first part of June. He urged the Board to take action tonight. Discussion followed regarding regu- lations imposed by the State of CA, fair share, transfer of sewer units, and plant capacity. Judith Yon Klug, Redevelopment Mgr./ City of So. Lake Tahoe, said the City had enough sewer units reserved to accommodate the 2 sewer units per room. Richard Solbrig reiterated staff's rec- commendations were equitable and fair at two sewer units per room. He detailed the calculations used for determining the sewer units represented in the will-serve letter. ~anager Baer reminded the Board he and Dale Sate had met with Kerry Miller and Dennis Crabb six months ago. At that time they (Miller & Crabb) were told the figures/calculations looked like two (2) or three (3) sewer units might be assessed for each room. Crabb and ST055087 REGULAR BOARD MEETING MINUTES - MAY 7 1992 Miller were also given copies of the water usage figures at the old Fantasy Inn on which the District based the proposed 2-3 sewer unit calculations. Director Wallac~ expressed confidence in staff, but felt there were overriding concerns about discouraging growth. He saw this as a re-establishment of a business--rather than a new business. He asked if the City and/or Mr. Feldman would be willing to set aside units and/or money and give them back to the District in the future if the staff's flow calculations proved right. Judy Yon Klug replied there would be no problem with setting aside 54 (sewer) units and assuring they would be there for some period of time in the future, should they be needed. If the District asked to have the additional sewer units turned back to the District, she would have to take that proposition back to her Agency (Redevelopment). Director Wallac~ suggested a motion giving Fantasy Inn a will-serve letter for one (1) sewer unit per room with a condition creating a mechanism to allow the District to get the additional money or assignment of additional sewer units if the one (1) sewer unit proved to be wrong. Director Mason reminded the Board any deviation from the presently understood "motel unit" had always been dealt with as a special circumstance, but, in this case, he would be willing to allow a re- check of actual sewer usage at a later date. PAGE - 7 FANTASY INN AT SONORA AVENUE AND ~IGHWAY-50 (continued) Director Mosbacher responded to Keith Klein's comments and said she would never, ever vote on District matters to "be popular". She felt the right thing was two (2) sewer units for this project. Director Onysko gave a breakdown of the mathematics as they related to District revenue for one (1) sewer unit compared to two (2) sewer units, but felt the assessment should be set at three (3) sewer units per room because the flows were going to be greater than present calculations represented. He said a ST055088 REGULAR BOARD MEETING MINUTES - MAY 7, 1992 three sewer unit assessment would re- sult in an increase of revenue of $85,000. He calculated this increase would represent a $6.00 savings per household. He felt this matter should be tabled to allow time for more public input. PAGE - u FANTASY INN AT SONORA AVENUE AND ~IGHWAY-50 (continued) Moved Onysko to table this item. Motion died for lack of a Second. Moved Mosbacher/Second Mason/ Pierini Abstained/Onysko and Wallace Voted No/Motion Did Not ~ to accept staff's recommendation (to approve will- serve letter showing two (2) sewer units assigned to each room). 7:05 PM 7:15 PM Moved Mosbacher/Second Mason/Onysko Voted No/Pierini Abstained/Passed to accept staff's recommendation (to approve the will-serve letter showing two (2) sewer units assigned to each room). MEETING BREA~ MEETING RESUMED Chairman Pierini returned to the dais and presided over the remainder of the meeting. Presented by Mary Rudokas who explained some additional costs which were added to the Task Order. Moved Mason/Second Onysko/Passed Unanimously to authorize EIP Assoc. Task Order No. 1 in the amount of $11,690 to prepare the proposed Environmental Documentation. FALLEN LEAFLAKE FLOW ALLOTMENT MODIFICATION Presented by Chris Twomey, who presented the rationale for aerial photogrammetric services & answered questions from Board members regar- ding the planned surveying and the related costs. AERIAL PHOTOGRAMMETRIC SURVEY: TREATMENT PLANT & COLD CREEK FILTER PLANT Moved Wallace/Second Onysko/Passed Una~ to authorize staff to proceed with the RFP Process. Presented by Richard Solbrig. He said his discussions with Consulting Engin- eering Services, suggested a first-step INUNDATIONMAPS FOR ICR, HARVEY PLACE RESERVOIR, AND THE ERB ST055089 REGULAR BOARD MEETING MINUTES - MAY 7, 1992 PAGE - 9 approach should be a brief reconnais- INUNDATION MAPS FOR ICR, HARVEY sance survey at the cost of $2,000--in PLACE RESERVOIR, AND THE ERB the hopes of eliminating the full-blown (continued) inundation maps. Solbrig said staff was recommending this first-step approach. Moved Mason/Second Wallace/Passed Unanimously to authorize expenditure of up to $2,000 for the initial services. Presented by Director Mosbacher who asked Diane Gilbert to read the Mission Statement of the South Tahoe Public Utility District. (The State- ment becomes a part of these minutes by reference herein as Attachment 2.) Moved Mosbacher/Second Onysko/Passed Unanimously to adopt the District's Mission Statement. MISSION STATEMENT Diane Gilbert reported a District Motto Contest will be conducted in the near future. She urged all employees and Board members to participate. Moved Wallace/Second Mason/Onysko Abstained/Passed to approve payment in the amount of $424,139.95. PAYMENT OF CLAIM~ Director Onysko requested considera- tion of the following: A A A A A rating system be used; Require engineering skills; Require computer skills; and Finance Committee review prior to screening process. CUSTOMER SERVICE MANAGER POSITION (Consent Item No. 8) Moved Mosbacher/Second Wallace/Passed Unanimously to: A) Approve revised job description; B) Revise position as Management Class 5; C) Set salary range at $3,600-$4,240 a month for Class 5; D) Authorize advertisement for position. Director Mason reported on the meeting he attended with Manager Baer, Attorney Sare, & Chairman Pierini with the Alpine County Contract Commission in Markleeville. BOARD MEMBER COMMITTEE REPORTS ST055090 REGULAR BOARD MEETING MINUTES - MAY 7, 1992 PAGE - 10 Manager Baer said encouraging comments were made by the Alpine County Health Dept. official regarding monitoring. The official expressed a desire to work more closely with STPUD. BOARD MEMBER COMMITTEE REPORTS (continued) Director Mason reported a lot of work and research is being done by Fish and Game on the type of fish that will be released in Indian Creek. Director Wallace reported the Finance Committee had met; most of the items were covered in today's meeting. Chairman Pierini reported he and Director Mason had met regarding Board Policies. He said Manager Baer has done a lot of work on the policies already. Director Mosbacher reported on "A Day in the Capital" with EDWPA. She also requested someone look into what SB 198 is. She thought we could get funding--if we would ask for it. Director Mosbacher's questions were also answered regarding blue marks in the street (water valve covers) . BOARD MEMBER REPORTS ~anaqer Baer reported on the following: STAFF REPORTS 1) Efforts in setting up a meeting with Douglas Wheeler/Secretary of Resources, State of CA regarding Sierra summit; 2) Meeting Rhonda Garton attended with Calif. Society of CPA's/Legislative Day and her conversation with David Knowles regarding property tax. 3) Letter from Congressman Doolittle's office regarding radon standards; 4) Meeting with Lakeside Mutual Water Co. and Carl Lischeske regarding water quality/quantity problems; 5) Truckee River Operating Agreement; 6) Barton Hospital Doctors' Staff Mtg. ST055091 REGULAR BOARD MEETING MINUTES - MAY 7, 1992 PAGE - 1] Past Meetinqs/Events 4/22/92 - Business/Environmental Fair 4/29/92 - EDWPA Day in the Capitol 5/04/92 - Alpine Co. Commission 5/04/92 - Special Mtg/Executive Session 5/04/92 - Public Hearing/1992-93 Budgets 5/05/92 - Barton Hospital Staff/Giardia Concerns STAFF REPORTS (continued) Assistant Manager Solbrig reported on the advertisement for Staff Enqineer Position. He said all applications are to be postmarked by May 29, 1992. Attorney Sare reported on the following: 1) CASA/Attorney Agenda; 2) Clay Borrow Pit Bond/Alpine Co. Diane Gilbert announced an invitation to Board Members: Demonstration and Tour of the Gardner Mountain Air- Stripping Tower on 5/21/92 at 3:00 PM. 5/15-16 - 4:30 PM - CASA/Berkeley Hills NOTICE OF FUTURE MEETINGS 5/21/92 - 4:00 PM - Regular Board Mtg. 8:30 PM ADJOURNMENT TO EXECUTIVE Pursuant to Government Code Section 54957.6(a)/UNION NEGOTIATIONS ADJOURNMENT U PIERINf, CHAfR~ OF BOARD SOUTH TAHOE PUBLIC UTILITY DISTRICT ATTEST: PAT A. MAMATH, CLERK OF BOARD SOUTH TAHOE PUBLIC UTILITY DISTRICT ST055092 ATTACHMENT 1 May 7, 1992 Board Meeting Minutes ACCOUNTS SUBMITTED FOR AUTHORIZATION OF DISCONNECTION PROCEEDINGS MAY 7, 1992 BOARD MEETING ITEM ACCT. # 1. 23-613-021 NAME SERV. ADDRESS /~4P.[IE Leopoldo Garcia 1878 Agate $ 454.43 2. 23-741-031 Jeanette Shadoff 2269 Idaho 454.43 3. 23-771-171 Sonia Bajone 879 So Shore S/O 367.36 4. 26-131-141 Jerry Lilienthal 799 Sonoma 454.43 5. 26-231-141 George Valentine 2759 Lake Tahoe Bi 564.95 6. 27-221-291 Charles King 1109 Oak Ave. 454.43 7. 27-341-171 Richard Dewhurst 3533 Deer Ln. 476.47 8. 31-061-071 Thomas Carey 1048 River Dr. 454.43 9. 31-133-051 Laurie Ward 2652 Elwood 504.43 10. 31-186-131 Manuel Lastimosa 2525 Rose Ave. 423.57 11. 31-204-121 Billy Foster 1246 O Malley 454.43 12. 32-203-021 Terry Theus 1300 Kyburz 421.94 13. 33-273-101 Darlene Fidel 843 Lake Tahoe Bi. 588.95 14. 33-285-011 Gladys Bartel 1164 Eagle Lane 588.95 15. 33-402-041 Richard Sproul 1821 Grizzly Mtn. 636.25 ST055093 ATTACHMENT lnuses 2 Board Meeting Ill IT IS THE PURPOSE OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT TO: Ensure the community has an adequate supply of high quality water for all its needs; Provide reliable collection, treatment, and reuse of wastewater, resulting in the protection of the unique environment of Lake Tahoe and Alpine County; Carry out District responsibilities with the safety and health of customers and employees as our primary concern; Perform all services efficiently and in a cost effective manner, in keeping with a responsible financial plan; Share information with our customers to foster and maintain a well informed community; Encourage our staff to develop and realize their full potential in meeting District needs. ST055094 May 7, 1992 PHONE NUHBER: 5Y/ BOARD MEETING GUEST SIGN-IN SHEET: (please print) NAME: ADDRESS: NOTE: COMPLETION OF THE ABOVE INFO~TION IS VOLUNTARY AND NOT A PRECONDITION FOR ATTENDANCE. ST055095