07-16-98SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert Baer, General Manager Richard Solbrig, Assistant Manager
James Jones, President BOARD MEMBERS Christopher Strohm, Vice President
Duane Wallace, Director Max Lou Mosbacher Director Pembroke Gochnauer, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
JULY '16, '1998
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session July 16,
1998, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California.
BOARD OF DIRECTORS:
ROLL CALL
President Jones, Directors Strohm, Wallace, Mosbacher,
Gochnauer
STAFF:
Baer, Solbrig, Minister, McFarlane, Forsythe, Brown,
Noble, Frye, Schroeder, Garcia, Schrempp, Rieger,
Hydrick, Bergsohn, Attorney Neese.
GUESTS:
Alvin Chang, Marcelo Caro, Robert Ward,
Brian Bose/Tribune, Bob Hedley, Doug Ross,
Connie Ross, Judy Cefalu
Consent Item No. I was brought forward for discussion
prior to Board action. (Consent Item No. 1 and the Re-
quest to Appear Item were heard together).
CORRECTIONS TO THE AGENDA
OR CONSENT CALENDAR
Staff requested Consent Items No. 3, 4, 5, 6, and 7 be
removed, as the situations have been satisfactorily
resolved.
Moved Strohm/Second Mosbacher/Passed Unanimously
to approve the Consent Calendar, as amended:
CONSENT CALENDAR
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REGULAR BOARD MEETING MINUTES - JULY 16, 1998 PAGE - 2
2)
8)
9)
10)
11)
12)
13)
14)
15)
Authorized implementation of the two-week discon-
nection procedures for delinquent sewer and/or
water accounts;
CONSENT CALENDAR
(continued)
Authorized implementation of the two-week water
and/or sewer disconnection procedures for failure to
maintain grease interceptor on the property located
at 1606 Shop Street, APN 32-313-21;
Dressier On-Farm Road Repair - A) Approved
Closeout Agreement and Release of Claims; and
B) Authorized Staff to File a Notice of Completion
with the Alpine County Clerk;
Unpaid Assessments - Adopted Resolution No.
2680-98, authorizing delinquent accounts be
added to the 1997-98 County Tax Assessor's
Roll;
Cold Creek Erosion Control and SEZ Restoration -
Authorized scope of work by Harland Bartholomew
and Associates to perform project's design and
permitting process in the amount of $26,189;
A-Line Replacement: Phase II- Approved amend-
ment for Special Use Permit Authorization with the
USFS for the District's A-Line parallel to Highway 89;
Repave Lower Shop Area - Approved Task Order
for G. S. Concepts to produce biddable plans and
specifications for project in the amount of $5,400;
Revolving Line of Credit (Grant Anticipation Notes) -
Adopted Resolution No. 2679-98, superseding
Resolution No. 2674-98 in its entirety;
Approved Regular Board Meeting Minutes:
May 21, 1998.
ITEMS FOR BOARD ACTION
Ken Schroeder stated that these bids are associated with
the water line replacement project and will cover paving
needs for this construction season.
PAVINGS BIDS
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REGULAR BOARD MEETING MINUTES - JULY 16, 1998 PAGE - 3
Moved Strohm/Second Gochnauer/Passed Unanimously
to: A) Award bid for asphalt patch paving contract to
lowest responsive, responsible bidder, G. B. Construction,
in the amount of $39,534.40; and B) Award bid for as-
halt trench paving to the lowest responsive, responsible
bidder, Pedersen Underground, in the amount of
$40,330.30.
PAVINGS BIDS
(continued)
Moved Strohm/Second Gochnauer/Passed Unanimously
to adopt Resolution No. 2681-98 requesting Governor
Pete Wilson protect drinking water supplies by prohi-
biting the use of MTBE in gasoline.
RESOLUTION REQUESTING
GUBERNATORIAL ACTION TO
REMOVE MTBE FROM GASOLINE
IN THE LAKE TAHOE BASIN
CONSENT ITEMS BROUGHT FORWARD FOR ACTION / DISCUSSION
Consent Item No. I and the Request to Appear Before
the Board item were heard simultaneously. Alvin Chang
came before the Board to express his belief that he
should not bear the burden and cost of the disconnec-
tion ofthe water line serving his neighbor (at 937 San
Jose) because he is legally connected to the District.
The illegal connection to his property (that also runs
through his property) was not disclosed as part of es-
crow proceedings and he did not know that there was
a problem at the time he purchased the property. He
also voiced his concern regarding legal repercussions
if he turns off the water service to his neighbor.
REQUEST TO APPEAR BEFORE
THE BOARD: Alvin Chang, 3152
Pasadena Avenue, APN 26-048-20;
and Water Disconnection
Procedures: Failure to Disconnect Illegal
Water Service
(Consent Item No. 1)
Inspector Greg Schrempp explained that there is one
water line that provides service to two properties, both
under separate ownership, and is a violation of the
District Administrative Code. If water is shut off to the
properly connected property (located at 3152 Pasadena
Ave.), water service to the 937 San Jose property (which
is in violation of the District Administrative Code), would
also be disconnected. This dual service was discovered
when District staff shut off the water on the property at
3152 Pasadena. In order for the property at 937 San
Jose to be in compliance with the District Administrative
Code, the property owner would be charged for time and
materials to install a new service, but not for new conn-
nection fees (the 937 San Jose property is already a wa-
ter customer). The estimated cost for the District to sad-
dle the line to the property line is $1,500.
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REGULAR BOARD MEETING MINUTES - July 16, 1998 PAGE - 4
Attorney Neese clarified that there are two violations:
1) The property located at 937 San Jose is not in com-
pliance with the District Ordinance regarding have its
own water service connection to the District; and
2) The property located on 3152 Pasadena needs to
conform to the District Ordinance that each parcel
must have its own connection.
Robert Ward, agent for Mr. Chang, expressed his con-
cern with: the problem of a private individual cutting off
water to another person's property, Mr. Chang incurr-
ing expenses that are not his to bear, and the legal situ-
ation that Mr. Chang will be placed in if he is told to
sever water service to the 937 San Jose property.
Questions and concerns from the Board were clarified
by staff.
Mr. Caro, owner of the property located at 937 San Jose,
stated that he was also unaware of the problem when
he purchased the property at 937 San Jose. He only be-
came aware that he was connected to the water service
through the 3152 Pasadena property when the water
turnoff was done.
It was the consensus of the Board that if staff could work
out a payment plan with Mr. Caro, that the disconnection
time period could be extended to August 20, 1998.
Moved Strohm/Second Wallace/Passed Unanimously
to A) Authorize disconnection to the property located at
3152 Pasadena, APN 26-048-20, on August 20, 1998;
and B) Notify the owner of the property located at 937
San Jose, APN 26-048-21, that staff will seek Board
authorization to disconnect water service to this property
at the next Regular Board meeting on August 6, 1998,
with a disconnection date of August 20, 1998.
Moved Gochnauer/Second Strohm/Passed Unanimously
to approve payment in the amount of $2,537,866.18
Diane Noble gave a brief overview of the needs that
lead to the request for this study to be done: the Dis-
trict's overall connection fee and service charges rate
structure has not been analyzed for many years; some
policies are written, and some are simply understood;
and, the need to review rates on an annual basis. She
outlined that the purpose of this study is to evaluate
REQUEST TO APPEAR BEFORE
THE BOARD: Alvin Chang, 3152
Pasadena Avenue, APN 26-048-20;
and Water Disconnection
Procedures: Failure to Disconnect
Illegal Water Service
(Consent Item No. 1)
PAYMENT OF CLAIMS
SEWER COST-OF-SERVICE AND
RATE STUDY DESIGN STUDY:
SYSTEM DEVELOPMENT/
CONNECTION FEE CHARGE
ANALYSIS
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REGULAR BOARD MEETING MINUTES - JULY 16~ 1998 PAGE - 5
the current customer classes and develop rate struc-
ture recommendations that reflect the actual costs of
new sewer capacity and services to all customers.
Included in this study will be issues raised in the com-
munity workshop and focus group meetings held last
winter. Noble then gave an overhead presentation of
the actual components of the study (A copy of the pre-
sentation is available at the District office).
Comments were received from Bob Hedley and Connie
Ross, and clarified by staff.
Moved Gochnauer/Second Strohm/Passed Unanimously
to authorize staff to solicit request for proposals.
Finance Committee: The committee met July 16 and re-
ported the following: US. Bank will fund the interim financ-
ing for the export pipeline replacement project by July 30,
1998, and the U.S. EPA gave a verbal okay on the devia-
tion request.
Water and Wastewater Operations Committee: The
committee met July 13, 1998 and discussed several
items on this agenda. The committee will tour some Dis-
trict facilities next week. Minutes from the meeting are
available upon request.
Planning and Ordinance Committee: The committee is
scheduled to meet on July 23, 1998, regarding the up-
date and consolidation of District ordinances.
County Water Agency/EDWPNLAFCO Committee: The
El Dorado County Water Agency (EDCWA) met on
July 14, 1998. The EDCWA Board approved financing of
Phase 2 of the Rare Plant Preserve. Instead of the pro-
posed $500,000 amount being approved, the Board
appropriated approximately $1.1 million for the Phase 2
funding.
Legislative Funding Ad Hoc Committee: The appropria-
tion request for the 1999 export pipeline replacement
project is proceeding through the House of Represen-
tatives. The $5 million funding request is continuing to
be considered.
SEWER COST-OF-SERVICE AND
RATE STUDY DESIGN STUDY:
SYSTEM DEVELOPMENT/
CONNECTION FEE CHARGE
ANALYSIS
(continued)
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD MEMBER AD HOC
COMMITTEE REPORTS
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REGULAR BOARD MEETING MINUTES - JULY 16~ 1998 PAGE - 6
Water Quality Task Force: On Thursday, July 16, 1998
District staff and Board members met with Lahontan
representatives to discuss MTBE issues.
Director Mosbacher read into the record a note of ap-
appreciation from Grass Lake Road residents regarding
the treatment plant and Alpine County tour. (This letter
is available upon request at the District office). She
also reported incidences of negligent flagging that oc-
curred on the export pipeline replacement project on
Highway 89 and Grass Lake Road.
Director Gochnauer reported on the meeting between
District staff and the Tahoe Conservancy regarding
looking for new water resources. The Tahoe Keys
Property Owners Association approached him regard-
ing granting access to lots on Colorado Court for use
of the aquifer in return for supplying their customers
on Colorado Court with water service.
Director Strohm reported the he visited with the staff
at the Santa Clara Valley Water District regarding their
MTBE program. He also reported that the South Lake
Tahoe Chamber of Commerce has endorsed the Dis-
trict's MTBE Free program.
Director Jones reported his attendance at the July 15,
1998 ACWA Safe Drinking Water Subcommittee meet-
ing held at the LaVerne Laboratory in Southern Califor-
nia. Legislative updates and clean water issues were
topics of discussion.
General Manager: Bob Baer reported on six items:
1) News broadcasts will be/have been aired on Bay
Area station KTVU on July 15 and 16, 1998, entitled
"Politics of MTBE" and that Chris Strohm and Jim Jones,
District Directors, and he were interviewed for these
broadcasts;
2) District staff members, under the leadership of Cap-
tain Hoggatt, manned an aide station at Picketts Junc-
tion for the Death Ride on July 11, 1998;
3) A Water Quality Assurance Program Staff meeting
was held on July 15, 1998 for the purpose of develop-
ing short and long-term strategies for the assurance of
an adequate water supply;
4) He will attend the one-year Presidential Summit anni-
versary workshop, hosted by Senator Harry Reid, to be
BOARD MEMBER AD HOC
COMMITTEE REPORTS
(continued)
BOARD MEMBER REPORTS
STAFF REPORTS
ST007192
REGULAR BOARD MEETING MINUTES - JULY 16, 1998 PAGE - 7
held at Heavenly Valley on July 18, 1998;
5) He will meet with Jane Freeman, Tahoe representa-
tive for U.S. EPA Region IX, on July 17, 1998 to brief
her on the MTBE contamination issues facing the Dis-
trict;
6) He and Chris Strohm, as well as other interested
Board members, will be attending the State Water
Resources Control Board meeting in Sacramento on
July 23.
District Information Officer: Dawn Forsythe reported on
four items:
1) The balance of the Helping Hands Outreach Program
is now $1,600;
2) Bay Area news station KTVU has/will air news broad-
casts describing what is happening in South Lake Tahoe
regarding MTBE. District staff has have been very busy
answering phones from concerned callers regarding the
news coverage;
3) The MTBE Free campaign will be run in the Tahoe
Daily Tribune listing all MTBE associated agencies and
their responsibilities;
4) She's preparing a five minute presentation to take on
the road regarding MTBE.
Chief Financial Officer: Rhonda McFarlane reported
that the 1997-98 fiscal year-end process has begun.
All Board members and staff have received the
1998-99 budget books.
Richard Solbrig reported on the status of the emergency
projects:
Tertiary Building Fire Emergency of February 5, 1998 -
A request for payment for repairs to the building, in the
amount of $355,000, has been submitted to the insur-
ance company, along with all pertinent information.
Millich Ditch/Snowshoe Thompson Ditch No. 1 Emergen-
cy Project of March 20, 1997 - G. B. Construction is work-
ing on the job site and has cleaned out the entire length of
the ditch. The contractor is bringing in materials for the job
and is one-third of the way through this process. The
approximate revised price for the Ditch repair is $260,000.
Lahontan is satisfied with the job as it is progressing. The
Congdon Easement Agreement has not yet been signed,
STAFF REPORTS
(continued)
STATUS OF EMERGENCY PROJECTS
ST007193
REGULAR BOARD MEETING MINUTES - JULY 16, 1998 PAGE - 8
but GB Construction has been granted verbal permission
to access the site to build the concrete bypass structure.
A time extension will be required from FEMA to finish the
job.
4:10 P.M.
4:20 P.M.
5:25 P.M.
STATUS OF EMERGENCY
PROJECTS
(continued)
MEETING BREAK
MEETING RESUMED AND
ADJOURNED TO CLOSED
SESSION
RECONVENE TO REGULAR
SESSION
ACTION I REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION
Legal counsel and staff updated the Board on the
status of this case.
No Board action.
The Board unanimously voted to direct legal counsel
to negotiate an extension to the tolling agreement.
5:30 P.M.
Pursuant to Section 54956.9(a) of
California Government Code/Con-
ference with Legal Counsel Existing
Litigation: Schwake v. STPUD,
Federal Case No. CV-N-93-851-DWH
Pursuant to Section 54956.9(b) of
California Government Code/
Conference with Legal Counsel -
Anticipated Litigation (seven cases)
ADJOURNMENT
K~thy Sharp,~erk o{ the- Boa~! -
South Taho(p~Public Utility District
ST007194
Mr. Richard
P.O. Box 11.t34
REGULAR BOARD OF DIRECTORS MEETING
GUEST SIGN-IN SHEET
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