08-07-97SOUTH TAHOE PUBLIC UTILITY DISTRICT
Basic Services for a Complex World
Christopher H. Strohm, President BOARD MEMBERS James Jones, Vice President
Robert Mason, Director Mary Lou Mosbacher Duane Wallace, Director
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REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
AUGUST 7, 1997
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session August
7, 1997, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe,
California.
BOARD OF DIRECTORS:
President Strohm, Directors Wallace, Mason and
Mosbacher. Director Jones arrived late.
~ALL
STAFF:
Baer, Solbrig, Schroeder, Noble, McFarlane, Gwinn,
Brown, M. Alsbury, Garcia, Regan, Thiel, Hydrick,
and Attorney Neese.
GUESTS'
Judy Brown/City Council Liaison; Terry Jamin/CSLT;
John Hargrove/e-three; William Branch, Roger Grim,
Jack McGinley, Wes Wiens, and Rick Madrid/Sierra
Pacific Power
Mr. Hargrove, e-three (a Sierra Pacific Power subsidiary),
gave an overhead presentation regarding the electric
power deregulation in California and how deregulation
PRESENTATION: ENERGY
DEREGULATION
REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE - 2
could potentially impact the District energy services
and costs. A question and answer period followed
where questions were clarified, with emphasis on
how Sierra Pacific can assist the District, depending
on the level of District involvement.
President Strohm presented Chief Financial Officer
Rhonda McFarlane with the Certificate of Achieve-
ment for Excellence in Financial Reporting awarded
by the Government Finance Officers of the United
States and Canada for the Comprehensive Financial
Report compiled by the District.
Staff requested Consent Item 5 be removed, as the
situation has been satisfactorily resolved. Consent
Item 4 was brought forward for discussion prior to
Board action. Action Item 5 was removed and will
be considered on a future agenda.
Moved Mason/Second Strohm/Jones Absent/Passed
to approve the Consent Calendar as amended:
1) Loader Acquisition: A) Authorized rejection of lowest
bid due to significant deviation from specifications;
B) Authorized waiver of three minor deviations to the
bid specifications; and C) Authorized lease/purchase
for a new case loader from GSC Western Power and
Equipment in the amount of $104,539.22;
2)
Authorized staff to purchase computers from GE
Capital utilizing the California Multiple Award
Schedule in the amount of $20,566;
3) Authorized implementation of the two-week discon-
nection procedures for delinquent sewer and/or water
accounts;
6) Approved Regular Board Meeting Minutes of
June 19, 1997;
7) Approved Regular Board Meeting Minutes of
July 3, 1997
PRESENTATION: ENERGY
DEREGULATION
(Continued)
PRESENTATION: FINANCIAL
REPORTING ACHIEVEMENT FOR
1996 COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CORRECTIONS TO THE AGENDA OR
CONSENT CALENDAR
CONSENT CALENDAR
ST057225
REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE
CONSENT ITEMS BROUGHT FORWARD FOR ACTION / DISCUSSION
Director Wallace expressed concern with the present
billing structure and recommended the Ordinance Com-
mittee review the issue of additional outdoor seating
capacity for summer months and its effect on the sewer
unit counts which determines the billing structure.
Directors Wallace and Mosbacher suggested amending
the Ordinance to make a provision for the accommoda-
tion of a different pricing structure for expanded outdoor
seating capacity during these months, instead of charging
for an expanded seating capacity rate for the entire year.
Director Wallace requested this Ordinance be reviewed by
the Ordinance Committee sometime in December or Janu-
ary, before the next summer season.
Diane Noble clarified that the additional seating count for
this particular agenda item was for seating in excess of
the permanent indoor seating capacity.
Moved Wallace/Second Mosbacher/Jones Absent/Passed
to authorize two-week disconnection procedure for the
property located at 1041 Fremont Avenue, APN 27-362-
10.
SEWER DISCONNECTION:
UNREPORTED SEWER CAPACITY
(Consent Item No. 4)
ITEMS FOR BOARD ACTION
Ken Schroeder reported on the potential problem with
purchasing the vehicle lift from Omer, the lift mainten-
ance manufacturer, who lost their ETL certification on a
technicality. The certification should be reinstated within
30 days. Staff requested that if the certification is not
received within the 30-day period that the Board author-
ize staff to purchase the lift from GCS Western Power
and Equipment (which is on the Federal General Services
Administration contract), and is the second lowest price.
Schroeder stated that the lifts are nearly identical. The
Operations Committee has reviewed this item and recom-
mended approval.
VEHICLE LIFT ACQUISITION
ST057226
REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE
Moved Mason/Second Strohm/Jones Absent/Passed
that A) Authorized purchase of an Omer Parallelogram
lift system from Municipal Maintenance Equipment (MME)
in the amount of $46,233.72, dependent upon Omer's
ETL listing reinstatement within 30 days; B) Authorized
staff to negotiate with MME for installation of the vehicle
lift in an amount not to exceed $12,868, otherwise instal-
lation will be performed by District staff; and C) Author-
ized purchase of the lift from GCS Western Power and
Equipment in the amount of $52,938.60 if Omer cannot
fulfill the ETL certification reinstatement requirement with-
in the 30 day period required.
VEHICLE LIFT ACQUISITION
(Continued)
Richard Solbrig presented this item. Only one bid was
received at the August 7 bid opening.
FLAGPOLE BOOSTER:
CENTRIFUGAL PUMPS
Moved Wallace/Second Mason/Jones Absent/Passed
to award purchase to the lowest responsive, responsible
bidder, GPM Corporation, in the amount of $13,967.66.
Richard Solbrig presented this item. Two bids were
received for this contract at the bid opening on August
7. One bid was received from Energy Systems, the
other from Nevada Energy Systems.
FLAGPOLE BOOSTER:
DIESEL GENERATOR
Moved Mason/Second Wallace/Jones Absent/Passed
to award contract to the lowest responsive, responsible
bidder, Nevada Energy Systems, in the amount of
$24,675.01.
Rhonda McFarlane reviewed the three-phase history
of the project. She then reported that a July 25 meet-
ing was held in South Lake Tahoe with representatives
from the District, Office of Emergency Services, FEMA,
TRPA and Lahontan in an attempt to resolve this issue.
She relayed that if FEMA would accept the standards
issue, the District would not be required to go through
the NEPA review process. FEMA has indicated that
there would be no funding at all for the project because
the NEPA review process has not been followed. Con-
sultants have been retained to assist the District in
securing the $1.2 million needed to fund this project.
Additionally, Holland and Knight has been teamed up
for congressional assistance.
FEMA FUNDING FOR THE
PONDEROSA PUMP STATION
$T057227
REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE
A lengthy question and answer period ensued where
questions and concerns were clarified.
McFarlane then outlined the proposed action plan:
1) Obtain Board authorization to go forward with con-
sulting team of KPMG Peat Marwick and Jim Stone,
along with Holland and Knight; 2) Prepare a congres-
sional briefing and an official appeal letter; 3) Prepare
a letter of intent to proceed with the project to be
mailed to FEMA and OES; 4) Schedule meeting with
Congressional Representative(s), OES, FEMA, Lahontan
and TRPA prior to September 8; 5) Prepare an engineer-
ing standard on procedure for river crossings for Board
adoption; 6) Prepare a letter, in conjunction with TRPA
and Lahontan, expressing that these two agencies dictate
that the District to go forward with the construction
of the project in an effort to avoid a spill; 7) Prepare a
Resolution, affirming that Lahontan would not allow
the District to go back under the river, for adoption by
Lahontan at their September 4 and 5 Board Meeting
in South Lake Tahoe, and prepare a comparable letter
to be signed by TRPA.
Moved Mason/Second Wallace/Jones Absent/Passed
to approve hiring the consulting team of KPMG Peat
Marwick, Jim Stone, and Holland and Knight to assist
with securing federal funds in an amount not to exceed
$35,000.
FEMA FUNDING FOR THE
PONDEROSA PUMP STATION
(Continued)
President Strohm appointed Directors Wallace and
Strohm to serve as the FEMA Ad Hoc Committee to
monitor FEMA progress.
Moved Strohm/Second Wallace/Jones Absent/Passed
to approve payment in the amount of 9461,1 55.04.
County Water Agency/EDWPA Committee:
Texas Hill tax and budget data has been received from
El Dorado County for review. A meeting will be held on
August 1 9 with regards to the t~50,000 being pursued
as part of the cost-sharing funding request.
PAYMENT OF CLAIMS
BOARD MEMBER STANDING
COMMITTEE REPORTS
ST057228
REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE - 6
Legislative Funding Committee: Director Wallace stated
that nothing significant has occurred since the Presi-
idential Summit here in Lake Tahoe. The 97 million in
funding earmarked for the Export Line Replacement Pro-
ject still has to pass the Senate Appropriations Commit-
tee. Director Wallace complimented all Board members
and staff who have worked so diligently on behalf of the
export pipeline replacement funding effort. Director
Wallace mentioned that both Senator Boxer and Senator
Doolittle greatly appreciated the ad published in the Tahoe
Tribune thanking them for the their efforts on behalf of
the District.
BOARD MEMBER AD HOC
COMMITTEE REPORTS
Director Mosbacher requested and received clarification BOARD MEMBER REPORTS
on several items: 1) Presidential forum packet author
(Presidential Forum Steering Committee); 2) Identify of
who installed the sewerline where the underground gar-
age is being built adjacent to Osgood and Ski Run, as part
of Redevelopment Project mentioned in the Operations
Committee minutes of August 4 (Pierini Corporation);
3) Identity of the Lahontan and TRPA staff members that
were supportive of the District at the FEMA meeting two
weeks ago (Scott Ferguson and Mike Solt); 4) Status of
the Self-Funded Medical Insurance Program (audits forth-
coming); and 5) If staff has responded to the letter written
by Neva Roberts regarding a demonstration here at the
District of usage of treated wastewater for irrigation pur-
poses, before a rate increase is considered. The letter was
read into the record (letter on file at the District office) and
discussed. The Board directed staff to draft a response.
Director Mason asked for and received clarification on two
items: 1) The status of efforts being made to see what can
be done, with the assistance of legislators, to change word-
lng in the Porter-Cologne Act with regards to clarifying the
use of the words sewage vs. effluent. He stated that the
original intent of the act was to get sewage out of the basin,
but now the District is being fined for effluent; 2) The time
of the CAFR photo shoot at Regan Beach before the August
21 Board meeting.
President Strohm reported that August 8 is the last day
for declaring candidacy to run for the Board seats that are
up for re-election. David Kelly and Pembroke Gochnauer
have filed for Director Mason's seat. Florence Donovan
has filed for the seat being held by Director Jones. Director
Strohm is running unopposed at this time.
ST057229
REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE
Manager Baer reported on six items:
1) August 8 is the deadline for applications for the DIO
position. Manager Baer, Nancy Hussman and Julie
Regan will review the applications.
2) The Sacramento Bee is doing a story on the export
pipeline. The article will probably be in the paper on
August 8 or 9.
3) He attended a SWRCB workshop in Sacramento on
August 6 regarding amendments to "minor violations"
definitions in conjunction with the Water Quality En-
forcement Policy. Another workshop will be held.
Manager Baer will continue to monitor the issue.
4) He received a copy of the Quincy Library Accord
Agreement pertaining to forest health and clean water.
It does not include the Tahoe Forest or Placer or El Dora-
do Counties.
5) $7 million in federal funding has been earmarked for
replacement of the export pipeline. Staff proposes to
do $6 to $7 million dollars in construction next year.
Chris Rissetto will be at the District on August 20 and
21 to advise how to bring the funding together. Bartle
Wells will assist with how this funding may affect the
financial plan. The next Board agenda will have an item
requesting an amendment to the Carollo Engineers con-
tract for surveying and soils testing on Highway 89.
6) He attended an El Dorado County Board of Supervi-
sors meeting on August 4 and approached them aboUt
sharing in the expense of paving Grass Lake Road, as
well as proceeding with the job earlier than originally
scheduled.
GENERAL MANAGER/STAFF
REPORTS
Richard Solbrig reported on the status of the remaining
emergency project:
STATUS OF EMERGENCY
PROJECTS
Millich Ditch/Snowshoe Thompson Ditch NO. 1 Emergen-
cy Project of March 20. 1 997 - Hal Bird spoke with the
ranchers who concurred with the agreement to take care
of the lawsuit over Woodford's Inn. Don Bently has re-
considered and wishes to participate in the Snowshoe
Thompson project with the District. Millich Ditch must be
fixed before Snowshoe Thompson Ditch can be rebuilt
because the irrigation water is currently being transferred
by Clarence Burr through a temporarily repaired Snowshoe
ST057230
REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE - 8
Thompson. Millich is the control ditch for rain water and
snow melt running off the hillside. A meeting has been
scheduled on August 15 for the purpose of developing
an agreement between the District and Bently. If this
agreement can be worked out, then the project can go
out to bid with the larger, more extensive pipeline project.
Attorney Neese informed the Board that the District will
need to acquire permanent and temporary construction
easements from the underlying property owners in order
to put the pipeline through.
Rhonda McFarlane stated that FEMA would consider the
pipeline an improved project and would have to give the
District permission to proceed with this project which
would be subject to the NEPA review process prior to
any construction work commencing.
Chief Financial Officer: Rhonda McFarlane reported that
Perry-Smith and Co. will arrive at the District on August
11 to perform the annual audit. Miller, Kaplan, Arase
and Co., the firm hired to perform an audit of the Self-
Funded Medical Insurance Program, will also be on site.
Attorney Neese reported on two items:
1) A recent Attorney General's opinion stated that
water based consumption fees are not subject to Prop-
acetin 21 8.
2) The proposed agreement put forth by County con-
cering indemnity, Proposition 218 and administrative
fees for collection of taxes has been received. The El
Dorado County Auditor's Office stated that they agreed
with 99% of the District's position and the last unre-
solved issue will be addressed soon.
Customer Service Manager: Diane Noble made a report
on several small claims actions:
1) Judgement was made in favor of the District regarding
the small claims suit filed by Mr. Desai, Cedarwood Lodge,
in the amount of $938.
2) Steve Clark, Acting Underground Repair Sewer Super-
STATUS OF EMERGENCY
PROJECTS
(Continued)
GENERAL MANAGER/STAFF
REPORTS
ST05'I231
REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE
visor, and Noble will represent the District in a small
claims action brought against the District by Phillip
Givant on August 8, 1997.
3) The Tahoe Chalet Inn claim is still pending. The
claim has been assigned to an arbitrator.
4) Settlement efforts are being made by CSRMA to
settle the Tam O'Shanter issue. Noble will keep the
Board informed of the progress of these last two claims.
4:50 P.M.
4:55 P.M.
5:50 P.M.
GENERAL MANAGER/STAFF
REPORTS
(Continued)
MEETING BREAK
MEETING RESUMED AND
ADJOURNED TO CLOSED SESSION
RECONVENE TO REGULAR
SESSION
ACTION / REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION
By unanimous vote of the Board members present a
Settlement Agreement with Mr. Gary Shidaker was
approved in order to avoid litigation. The dispute con-
cerned use of the District easement across Mr. Shid-
aker's property in connection with the construction
activities of the Al Tahoe Pump Station. Mr. Shidaker
acknowledged the District's easement across his prop-
erty and the District agreed to fog seal Link Road, repair
damaged portions of the fence on Mr. Shidaker's proper-
ty and place some slow signs to reduce speed on the
roadway. A Memorandum of Agreement summarizing
basic terms of the Settlement Agreement was exe-
cuted by both parties and has been submitted to the
County Recorder's Office for recordation.
The Board advised Legal Counsel regarding this item.
NO Board Action.
Pursuant to Section 54956.9(b) of
California Government Code/
Conference with Legal Counsel -
Significant Exposure to Litigation
(One Case)
Pursuant to Section 54956.9(b) of
California Government Code/
Conference with Legal Counsel
Anticipated Litigation
(One Case)
ST057232
REGULAR BOARD MEETING MINUTES - AUGUST 7, 1997 PAGE
The Board advised Legal Counsel and staff regarding
this item. (Director Jones arrived at this point in the
meeting.)
NO Board Action.
5:55 P.M.
Pursuant to Section 54956.9(b) of
California Government Code/
Anticipated Litigation
(One Case)
ADJOURNMENT
Christopher H. Strohm, President of Board
South Tahoe Public Utility District
Kathy SI~, C~erk 'of B~'ard
South Tal~oe Public Utility District
ST057233
JULY 23, 1997
HON. BOARDMEMBERS, JOINTLY AND SEVERALLY
SOUTH TAHOE PUBLIC UTILITY DISTRICT
1275 MEADOW CREST DRIVE
SOUTH LAKE TAHOE, CA 96150
RE: PORTER COLOGNE ACT/RAISES IN WATER RATE
Dear Boardmembers,
Before another rate increase is considered for water I respectfully
request that the Board pursue the provision in the Porter Cologne
Water Quality Act that provides for a demonstration project of
treated waste water within the District in the Lake Tahoe basin.
It seems prudent, responsible, and economically viable that a limited
project whereby Bijou Community Park, or the college, or even the
S.T.P.U.D. grounds could be successfully irrigated (I.E: no harmful
particulates entering the lake as a result) without detriment to
the environment. Indeed, the pressures at the plant would even be
marginally reduced.
Has the provision for such a project been rescinded? When? Why? By
whom?
Your consideration would be appreciated.
Neva Roberts
P.O. BOX 8306
SOUTH LAKE TAHOE, CA
96158
ST057234
SOUTH TAHOE PUBLIC UTILITY DISTRICT
Gtneral Manager
ROBERT G. B AER
"Basic Service,, for a Complex World"
September 05,
SEWER · 19~0 · WATER n PUBLIC AGENCY
1275 Meadow Crest Drive · South Lake Tahoe, California 96150
Phone (916) 544-6474 · Fax (916) 541-0614
1997
Directors
JAMES R. JONES
ROBERT MASON
MARY LOU MOSBACHER
CHRIS STROHM
DUANE WALLACE
Neva Roberts
P.O. Box 8306
South Lake Tahoe CA 96158
RE: PORTER COLOGNE ACT/RAISES IN WATER RATE
Dear Ms. Neva Roberts:
Several years ago the board considered and informally rejected an in-basin reuse
project at the wastewater treatment plant. I estimated the project would increase
effluent disposal costs due to a number of factors including: additional ground water
and soil monitoring requirements, increased operation and maintenance cost, and
increased disinfection costs. In-basin reuse would not be cost effective unless
significant volumes of effluent could be disposed of and no additional treatment was
required.
District employees work hard to operate and maintain an efficient and reliable utility. A
pilot reuse project would be fascinating to build and operate, but would not be
practical under the provisions of the Porter Cologne act.
I would be happy to discuss reuse with you in further detail. I can be reached at
544-6474 ext. 241.
Sincerely,
Manager of Wastewater Operations
cc: Board
ST057235
REGULAR BOARD OF DIRECTORS MEETING
GUEST SIGN-IN SHEET
IN ACCORDANCE WITH THE BROWN ACT:
COMPLETION OF THIS INFORMATION IS VOLUNTARY, NOT MANDATORY,
AND IS NOT A PRECONDITION FOR ATTENDANCE,
;NAME I ADDRESS I PHONE # I
ST057236