11-19-98SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert Baer General Manager Richard Solbri~, Assistant Manager
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James Jones, President BOARD MEMBERS Christopher H. Strohm, Vice President
Duane Wallace, Director Mary Lou Mosbacher, Director Pembroke Gochnauer, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
NOVEMBER 19, 1998
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session November
19, 1998, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe,
California.
BOARD OF DIRECTORS:
President Jones, Strohm, Wallace, Gochnauer.
(Director Mosbacher arrived at 2:10 p.m.)
ROLL CALL
STAFF:
Baer, Solbrig, Sharp, Taylor, Noble, Brown, Adams,
Forsythe, Schrempp, Hrbacek, Schroeder, Reid,
Attorney Neese.
GUESTS:
Judy Brown/City Council Liaison, Andy Bourelle/Tahoe
Daily Tribune, Ken Rollston, Joyce Blackstone, Roy
Hampson
Moved Gochnauer/Second Strohm/Mosbacher Absent/
Passed to approve the Consent Calendar, as submitted:
CONSENT CALENDAR
1) Furnace Building Reroofing - Authorized filing a Notice
of Completion with the El Dorado County Clerk;
2) Authorized implementation of the two-week disconnection
procedures for delinquent sewer and/or water accounts;
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REGULAR BOARD MEETING MINUTES - NOVEMBER 19, 1998 PAGE - 2
3)
4)
5)
6)
Authorized implementation of the two-week discon-
nection procedures on the property located at 3668
Lake Tahoe Blvd., APN 27-071-091, for failure to
perform annual backflow assembly test;
Rejected liability claim: Grady;
County Water Agency / District Cost Sharing Agree-
ment - Authorized execution of the first amendment to
the 1996/97 and 1997/98 Agreement to Share Costs;
Scott Cable Communications, Inc. - Authorized
execution of Assignment of Agreement to Interlink
Communications Partners, LLLP.
CONSENT CALENDAR
(continued)
Diane Noble reported this item was reviewed by the
Operations Committee. She explained there is no sewer
main located in close proximity to the property, located
at 1504 Bel Air Circle (because that was the old right-of-
way for the freeway since 1968). Easements were granted
to the property owner. Lahontan made it a requirement
that this property be hooked up to the collection system
during the summer. Since no main line available at the
property, the owner had to incur $4,240 in costs in order to
run the line along the back of his property across the ease-
ments to connect to the collection system.
Mr. Rollston, on behalf of the property owner, requested
a compromise be made: Since the District did not have a
line available (but was never charged for the assessment
district in the 1960's and 1970's), that the Board consider
splitting the cost of the private contractor's work to provide
the lengthy lateral needed to connect to the collection
system. Staff has held the $6,000 connection fee in a
deposit status, to enable Mr. Rollston to bring this appeal
before the Board.
Ken Rollston was present to answer questions.
Moved Gochnauer/Second Wallace/Mosbacher Absent/
Passed to authorize a refund be issued to the property
owner of 1504 Bel Air Circle for half of the construction
costs incurred to connect to the District's collection system,
in the amount of $2,120, and to deposit the remainder of
fees into the sewer revenue funds.
REQUEST TO APPEAR BEFORE
THE BOARD: Kenneth Rollston, esq.,
on behalf of 1504 Bel Air Circle,
APN 33-201-10
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REGULAR BOARD MEETING MINUTES - NOVEMBER 19, 1998 PAGE - 3
(Director Mosbacher arrived at this point in the
meeting.)
Henry Murdock, on behalf of George Fernandes/
Sierra Nevada Logging, came before the Board to
request forgiveness of a debt.
Mr. Fernandes contracted with the District to provide
logging and cleanup services. He was unable to finish
the job due to bankruptcy proceedings against him. The
amount owed to the District totals $7,700. After discuss-
ing this item, the Board concluded that sufficient information
was not presented to make an informed decision, and
directed Attorney Neese to obtain the necessary informa-
tion from Mr. Murdock and to bring this item back before
the Board at a later date.
REQUEST TO APPEAR BEFORE
THE BOARD: Henry Murdock, esq.,
on behalf of George Fernandes,
DBA Sierra Nevada Loggin,q
No Board action.
ITEMS FOR BOARD ACTION
Nona Reid reported on the status of negotiations with
EPA regarding the District's deviation/grant request. The
EPA has stated their position on the deviation request and
a written decision is expected soon. In order for fund the
additional local match required by EPA's offer, it would
necessitate the construction schedule be altered to bypass
the 1999 construction season, with construction commencing
every other year after that until completion in 2004. (This
revised schedule would still meet the requirements imposed
by Lahontan for completion by 2012). The Finance Com-
mittee reviewed a variety of options and recommended
accepting the offer, as presented:
EXPORT PIPELINE REPLACEMENT
1) Combine the $7.15 million appropriation with the $2.5
million appropriation into one grant totaling $9,650,000.
2) Consider eligible costs to be: associated planning and
design costs incurred prior to 10/1/97 for construction work
done after 10/1/97; pipeline costs from 10/1/97 to 7/16/98
split 55% for federal share and 45% as the local share;
pipeline costs from 7/16/98 forward would be funded 100%
with the remaining federal grant money; when all federal
grant money is exhausted, local money will complete the
45% match.
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REGULAR BOARD MEETING MINUTES - NOVEMBER 19, 1998 PAGE - 4
3) Other pre-award or post-award costs for the A and B
sections of the pipeline will be eligible for federal funding,
if statutorily approved by Congress.
EXPORT PIPELINE REPLACEMENT
(continued)
4) The grant award will be extended to 12/31/05.
The District's required match will total $7,895,454. All
spending prior to 10/1/97 ($16,076,944) will not be recog-
nized as part of the local match (except for planning and
design costs incurred for construction work done after
10/1/97).
It was the consensus of the Board to direct staff to
re-apply for the $9.65 million grant, with the conditions
as noted above.
No Board action.
Dawn Forsythe reported that a component of the Ground- GROUNDWATER MANAGEMENT
water Management Plan is to form a Stakeholders Advisory PLAN STAKEHOLDER ADVISORY
Group. She reviewed the three nominations received GROUP
to fill the two public-at-large positions and requested the
Board make the appointments. Roy Hampson stated
locals should be appointed to represent their own com-
munity.
The Board directed staff to accept all three nominations
for appointment to the public-at-large positions.
No Board action.
Moved Gochnauer/Second Strohm/Passed Unanimously
to approve payment in the amount of $635,819.14.
PAYMENT OF CLAIMS
Moved Strohm/Second Gochnauer/Mosbacher Abstained/
Passed to approve Special Board Meeting Minutes of
October 28, 1998. (Director Mosbacher abstained, be-
cause she was absent from that meeting.)
SPECIAL BOARD MEETING MINUTES:
OCTOBER 28, 1998
Water and Wastewater Operations Committee: The
committee met November 16. President Jones reported
that it is anticipated that the needs assessment proposal
from Ward & Young will be expected to received soon.
Director Gochnauer stated the 100% plans and specifica-
tions for A-Line Phase I and II are complete. Minutes from
the meeting are available upon request.
BOARD MEMBER STANDING
COMMITTEE REPORTS
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REGULAR BOARD MEETING MINUTES - NOVEMBER 19, 1998 PAGE - 5
Planninq / Ordinance Committee: The committee met
November 12 to continue work on the consolidation of
District ordinances.
Lahontan/SWRCB Communications Ad Hoc Committee:
The Lahontan performance review has been completed
by the state auditors. The report concluded that Lahontan
is not fulfilling all of its regulatory responsibilities, and
pointed out specific areas for improvements.
Roy Hampson offered his insight regarding the audit. He
also commented on the MTBE litigation.
Director Gochnauer reported that Kerry Miller (City
Manager) and Mike Weber (Camp Richardson Resort)
will be forming a committee for the purpose of reviewing
fire protection needs along Hwy. 89.
President Jones reported on his attendance at the
November 18 Governor's Advisory Panel on MTBE.
It was the last meeting of the workgroup; a summary
of their recommendations will be sent to the Governor
for his consideration.
3:45 p.m.
3:50 p.m.
Manager of Customer Service: Diane Noble reported
that the consultant performing the sewer rate study
will be at the December 3 Regular Board Meeting to
give a presentation regarding policies.
Richard Solbrig reported on the status of the emergency
projects:
Upper Truckee River Sewer Line and Original A-Line
Crossinq Emer.qency of 8/20/98: The work on this project
has been completed. Final payment to the contractor will
be included on the December 3 payment of claims. The
river will continue to be monitored to observe whether the
main channel flows are redirected. The cattle company
placed their cattle crossing on top of the rip rap - this area
will also be monitored to ensure it has no detrimental
effects on the project, The revegetation has been com-
pleted and the lines in that location are now protected.
BOARD MEMBER STANDING
COMMITTEE REPORTS
(continued)
BOARD MEMBER AD HOC
COMMITTEE REPORTS
BOARD MEMBER REPORTS
MEETING BREAK
MEETING RESUMED
STAFF REPORTS
STATUS OF EMERGENCY PROJECTS
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REGULAR BOARD MEETING MINUTES - NOVEMBER 19, 1998 PAGE - 6
Arrowhead Replacement Well Emer,qency of 8/20/98 -
The well drilling contractor has completed his work. Tom
Haen installed the pitless adapter; he still has piping addi-
tions to complete. The power company has to reconnect
the building in order to allow future pumping. Testing of
the well has revealed trace amounts of MTBE in the deep
aquifer that range from .1 ppb to .3 ppb. Staff is in the
process of trying to determine where the contamination
originated from.
Gardner Mountain Replacement Well Emergency of
9/17/98 - The USFS has not given specific direction regard-
ing the extent of the biological assessment (eagle study)
that needs to be conducted. Due to these requirements,
the well will not likely be on-line by mid-June. A test of
Lukin's reported intertie on 15th Street will be conducted
November 24; pressure monitoring in the area is already
underway. The District may be able to utilize 200 gpm of
water from Lukin's system to help supply the Gardner
Mountain zone.
District General Counsel: Kevin Neese reported regarding
the redevelopment and zoning issues affecting the Ground-
water Management Plan (GMP). A component of the GMP
being considered by the District is wellhead protection. The
District has the ability to designate a wellhead protection
area, but it does not have the authority and police power
to prohibit or limit certain types of activities or uses within
particular wellhead protection areas. These types of powers
are vested in land use planning entities, such as cities and
counties. However, the District does have the ability to
engage in coordinated agreements with these land use
planning entities. For this reason, staff met with City repre-
sentatives to discuss the City's potential participation and
involvement in the GMP. The City was highly agreeable
to participating in the GMP in the capacity as described
above.
President Jones stated that a reminder was sent to Board
members to submit their expense claims in on a monthly
basis.
4:10 p.m.
STATUS OF EMERGENCY
PROJECTS
(continued)
STAFF REPORTS
BOARD MEMBER REPORTS
ADJOURNMENT TO CLOSED
SESSION
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REGULAR BOARD MEETING MINUTES - NOVEMBER 19, 1998 PAGE - 7
5:45 P.M.
RECONVENE TO REGULAR
SESSION
ACTION / REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION
No report.
No Board action.
Legal counsel and staff updated the Board and
received direction regarding this item.
No Board action.
No report.
No Board action.
Pursuant to Section 54956.9(b) of California Government
Code, Conference with Legal Counsel: Anticipated Litiga-
tion (one case): The Board reported on action taken during
the November 5 Closed Session re: accepting the Lahontan
Settlement Agreement, which included funding a Corp of
Engineers study.
Ayes: Wallace, Strohm, Gochnauer.
Noes: Mosbacher
Absent: Jones
5:45 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 (one case)
Pursuant to Section 54956.9(a) of
California Government Code/Con-
ferencewith Legal Counsel Existing
Litigation - STPUD v. ARCO, et al,
San Francisco County Superior
Court, Case No. 999128
ADJOURNMENT
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South Tahoe Public Utility District
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REGULAR BOARD OF DIRECTORS MEETING
GUEST SIGN-IN SHEET
IN ACCORDANCE WITH THE BROWN ACT:
COMPLETION OF THIS INFORMATION IS VOLUNTARY, NOT MANDATORY,
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