05-05-94MINUTES
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
MAY 5, 1994
The Board of Directors of the South Tahoe Public Utility District met in
an Executive Session at 3:15 PM at the District Office, 1275 Meadow
Crest Drive, and a Regular Session May 5, 1994, 4:00 PM, City Council
Chambers, 1900 Lake Tahoe Boulevard.
3:15 - 3:45 PM EXECUTIVE SESSION
3:15 PM - President Wallace called the
meeting to order and immediately adjourn-
ed to Executive Session.
BOARD OF DIRECTORS:
CALL TO ORDER
ROLL CALL
President Wallace, Directors Mason, Jones,
Mosbacher, Strohm
STAFF:
Baer, Attorney Clifford (who spoke via
telephone.)
EXECUTIVE SESSION
Litigation File
3240/BOTTINI ET
STPUD
#SV93-
AL VS.
3:43 PM
ADJOURNMENT (MOVED TO
CITY COUNCIL CHAMBERS)
4:00 PM
RECONVENE TO REGULAR
BOARD MEETING
4:00 PM REGULAR BOARD MEETING
BOARD OF DIRECTORS:
President Wallace, Directors Mason,
Mosbacher, Jones, Strohm
ROLL CALL
STAFF:
Baer, Solbrig, McFarlane, Noble, Twomey,
R. Johnson, Schroeder, Swain, Gwinn,
T.O., Gigi, Laura, Christine and Carrie
Poulson, Garcia, Taylor, Alsbury, Hydrick,
Knight, Brown, Eddy, Hoggatt, Sharp,
Attorney Sare, Attorney Rissetto
GUESTS:
Frank DuQuite/City Council,
Jeff Delong/Tahoe Daily Tribune,
John Cefalu, Dick Leopold, Jerry Orton,
ST055522
REGULAR BOARD ME~T~NG Mi~OTES - MAY 5, 1994
Brian and Norma Taylor, Ty Baldwin,
Connie Ross, Lisa O'Daly, Thomas Grevin
Diane Noble announced the winners of the
poster contest which was held to promote
May as water awareness month. Certifi-
cates and savings bonds were awarded to:
Nika Hsiao, Jonathan Tapia, Christine
Poulson, and Laura Poulson.
Reprints of Laura Poulson's winning poster
were distributed to establishments in the
area to encourage water conservation.
Thomas Greve~ appeared before the Board to
outline perceived problems regarding his
payment plan for delinquent charges. The
Board directed Mr. Greven to meet with
the Customer Service Manager to establish
a plan that will satisfy both Mr. Greven
and the District.
Ty Baldwin expressed his dismay regarding
Attorney Sare's new seating arrangement.
Dick Leopold came before the Board to
remind them of what he felt to be a sewer
unit inequity at his laundromat.
Shop Steward
No report.
Attorney Sare requested the wording for
Agenda Item VIII. (E) be changed to read
"Reading of Ordinance Number 447"; and
add to Agenda Item XIV. the heading
,,INITIATE LITIGATION."
Attorney Sare requested Consent Item 6/
A1 Tahoe Well No. 2 Loop Line, ERB Force-
main, and Chinquapin Water Line be brought
forward for discussion after the Public
Hearing.
Directors Mosbacher and Strohm requested
Consent Item 7/District ERB Pipeline Re-
placement Project Negative Declaration be
moved for discussion after the Public
Hearing.
Moved Mosbacher/Second Jones/Passed
Unanimously to approve the Consent
Calendar as amended:
1) Authorized staff to advertise for bids
for the purchase of chlorine, caustic
soda, and sodium hypochlorite;
PAGE - 2
ROLL CALL
(continued)
AWARDS PRESENTATION FOR
WATER CONSERVATION POSTER
CONTEST WINNER
COMMENTS FROM THE AUDIENCE
CORRECTIONS TO AGENDA OR
CONSENT CALENDAR
CONSENT CALENDAR
ST055523
REGULAR BOARD MEETING MInuTES - MAY 5, 1994
2)
3)
Authorized staff to negotiate an ex-
tension of the District's contract
with Allied Colloids for a maximum of
one year for dry polymer;
Approved Negative Declaration and
authorized filing Notice of Determina-
tion with Office of Planning and
Research and E1 Dorado County Clerk
for Stateline Storage Project;
Authorized staff to advertise for bids
for the Stateline Storage Project -
Phase One Tank;
5)
Authorized Pederson Underground to
perform relocation work on Apache for
E1 Dorado County Erosion Control Pro-
ject.
4:30 PM PUBLIC HEARING
President Wallace opened the Public
Hearing at 4:30 PM.
Finance Officer McFarlane, presented the
1994-95 Fiscal Year Budgets for the
Water Enterprise Fund and Sewer Enter-
prise Fund. Using a slide presentation,
McFarlane explained the planned expendi-
tures and revenues. Assistant Manager
Solbrig explained several projects in
detail, and Manager Baer addressed
specific concerns raised at the Community
Forum.
Ty Baldwin complemented McFarlane on her
performance as a Finance Officer. Mr.
Baldwin challenged the need for a rate
increase, saying it will greatly impact
the senior citizens of the District.
John Cefalu questioned the need for a
Five Year Plan, and suggested that im-
provements be stretched over a longer
period to ease the burden to the rate-
payers. Mr. Cefalu addressed the Board
regarding several other concerns.
Director Mosbacher stated that many
items in the budget and Five Year Plan
will still come before the Board for
approval prior to commencement, at that
time the Board can weigh the benefits of
moving ahead with the item vs. setting it
PAGE - 3
CONSENT CALENDAR
(continued)
1994-95 FISCAL YEAR
BUDGETS: WATER ENTERPRISE
FUND AND SEWER ENTERPRISE
FUND
OPEN HEARING
STAFF REPORT
PUBLIC COMMENTS
BOARD MEMBER COMMENTS
ST055524
REGULAR BOARD MEETING MINUTES - MAY 5, 1994
aside. Director Mosbacher emphasized the
budget and Five Year Plan are flexible and
not set in concrete. She also thanked the
members of the community for voicing their
concerns at this meeting.
Director Jones said he was glad to see the
implementation of a Five Year Plan. Long
term planning is important. Funds that
were invested in improvements to the treat-
ment plant have resulted in a more effi-
cient system - money spent can mean money
saved. Rates have not been raised in
several years and are not projected to
raise in the next five years. Improve-
ments are needed now for the water system
to function over the long-term, spend now
to save in the future.
Director Mason pointed out the District's
rates over the last twenty years have not
increased as much as the cost of living.
A Five Year Plan is designed to be a guide,
to either build upon or subtract from.
Director Strohm addressed the need for
improvements. The water system needs
repairs in many ways. Pipelines are leak-
ing, supplies from wells are deficient,
storage is also deficient. This all must
be paid for. Grant funds are dwindling.
Two options remain, get a loan or raise
rates. A loan will cost much more over
the long-term. Raising rates is a hard
thing to do. Much consideration has been
given to this budget; there is a need to
fix the water system as responsibly and
cost effectively as possible, and this is
what must be done.
President Wallace stated that in the near
future water may be the way growth is con-
trolled and may affect our community soon,
considering the way the state is mandating
regulations. A long-range plan for the
District is a necessity. The Five Year
Plan will eventually be expanded to cover
a longer period of time. Capacity issues
and water supplies must be addressed.
Repairs and funding of depreciation could
be ignored, but the Board believes that
facing these concerns now is doing the
right thing for the ratepayers in the long
run. The treatment plant was voted the
best plant in California because the
District proved it has the most efficient
plant and is not wasting money on unneces-
sary expenditures.
PAGE - 4
BOARD MEMBER COMMENTS
(continued)
ST055525
REGULAR BOARD MEETING MINUTES - MAY 5 1994
President Wallace pointed out that all
projects in the plan are necessary, not
frivolous.
Attorney Sate read Ordinance 447 in its
entirety for the public record.
7:05 PM
7:05 PM
7:10 PM
PAGE - 5
BOARD MEMBER COMMENTS_
( continued)
READING OF ORDINANCE 447
CLOSE PUBLIC HEARIN~
MEETING BREAK
REGULAR MEETING RESUMED,
CONSENT ITEMS BROUGHT FORWARD FOR ACTION DISCUSSION
Attorney Sare explained the easement
agreements to the Board. Sare suggested
letters be written to the property owners
who granted the easements to thank them
for their willingness to cooperate and for
their display of goodwill towards their
community.
Moved Mason/Second Jones/Passed
Unanimously to approve the eas=ments for
Denny's, Alvin DeTata, and the Rogers
family.
Director Mosbacher stated that the
wording used to respond to comments in
the Negative Declaration (Section 5b)
was misleading. The words "raw sewage"
should have been made to read ,,partially
treated and diluted sewage."
Director Mosbacher asked what was being
done regarding the County's work on the
culverts on Chinquapin. Director Strohm
outlined the work being done by the Dis-
trict on the ERB project. The work will
involve tearing up each side of the road
on Chinquapin, which will result in paving
the entire road after repairs are made.
Next year, the County has a project plann-
ed where culverts will be installed across
the road, which will tear up the new road
that the District just installed. Efforts
are underway to coordinate both projects
for completion this year to avoid unneces-
sary duplication of paving the road, and
to minimize the irritation to the citizens
on Chinquapin.
Moved Strohm/Second Jones/passed.
Unan~ to approve the Negative Declara-
tion and authorized filing of Notice of
Determination with office of Planning and
Research and E1 Dorado County Clerk.
AL TAHOE WELL NO. 2 LOOP,
ERB FORCEMAIN, AND
CHINQUAPIN WATER LINE
DISTRICT ERB PIPELINE
REPLACEMENT PROJECT _
ST055526