07-07-99 SpecialSOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert Baer General Manaoer Richard Sol.b~d~c~.Assistant Manager
James Jones, President BOARD MEMBERS Christopher Strohm, Vice President
Duane Wallace, Director Ma~ Lou Mosbacher, Director Pembroke Gochnauer, Director
SPECIAL BOARD MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
JULY 7, 1999
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a Special Session on July 7,
1999, 1:00 p.m., at the District Office, 1275 Meadow Crest Drive, South Lake Tahoe, Cahfornia.
BOARD OF DIRECTORS:
President Jones, Directors Strohm, Wallace,
Mosbacher, Gochnauer.
ROLL CALL
STAFF:
Baer, Solbrig, Sharp, Hydrick, Hoggatt, McFarlane,
Attorney Kvistad.
GUESTS:
Juan Palma, Colin West, and Anjeanette Kellog/
USDA Forest Service LTBMU; Tara Plimpton and
Scott Brooke/Brooke & Shaw (representing Camp
Richardson Resort); Danny Lukins/Lukins Brothers
Water Co. Inc.; Deborah Palmer (representing
Lukins Brothers Water Co.),
ITEM FOR BOARD ACTION I DISCUSSION
(The USFS came before the Board on July 1 re:
their request for water service. A decision was
deferred until the full Board could participate in
the decision making process. The Board members
who were absent from the July 1 Board Meeting
were provided tapes and a summary of the discus-
sion so they have full understanding of this issue.)
USDA FOREST SERVICE, LAKE
TAHOE BASIN LAND MANAGEMENT
UNIT REQUEST FOR WATER SERVICE
ST057754
SPECIAL BOARD MEETING MINUTES - JULY 7, 1999
Colin West, USFS, reported the USFS has amend-
ed their original request for water service. Since the
July 1 Board meeting, Camp Richardson and Lukins
Brother Water Co. came to an agreement to extend
the current temporary water service until September
30, 1999. They requested the District provide tempor-
ary water supply to the South Shore recreation area
after September 30, 1999, and continuing until June 1,
2000, in the amount of 65,000 gallons per day. The
water supply would be for domestic use only. Water
from a surface source would be used to provide their
irrigation needs.
Scoff Brooke, representing Camp Richardson Resort,
confirmed an agreement was reached to provide
continued service to the entire USFS property, in-
cluding Camp Richardson, through September 30.
This provides water through the high summer usage
and gives time for the development of the contract
for an interim connection with the District, if the
Board chooses to do so. There is currently in place
a parallel track operation to develop a well on USFS
property which may commence in early August. Mr.
Brooke expects the District will have information on
the well, in terms of quality and quantity, sometime
this fall. He believes there will be plenty of time
before the end of next May to complete and equip
the well, and to provide for further agreements on a
permanent source. He requested, on behalf of Camp
Richardson Resort, a discrete amount of water, for
a discrete period of time, from September 1999
through June, 2000 to allow that to occur.
Rick Hydrick reported on water demand and produc-
tion capacity over the 4th of July holiday for District
and USFS demand. He compared 1999 usage to
1998 and determined if the District were to provide
domestic water supply, it would equal less than 1%
of production capacity. Several questions were
raised by Board members and clarified by staff.
Discussion was held regarding if the USFS would
need a contract or agreement. Director Wallace
questioned the need for an interim agreement.
There were strong sentiments among Board mem-
bers that the USFS should be treated consistently
PAGE - 2
USDA FOREST SERVICE, LAKE TAHOE
BASIN LAND MANAGEMENT UNIT
REQUEST FOR WATER SERVICE
(continued)
ST057755
SPECIAL BOARD MEETING MINUTES - JULY 7, 1999
with all other customers of the District. Baer stated
that the capacity of the new well is still unknown
and cannot commit to delivering a maximum de-
mand of 240,000 gallons per day to the USFS on a
permanent basis, and this is why an interim agree-
ment is necessary. Another reason why an interim
agreement is needed is that there needs to be a
connection with the District's existing system to the
USFS system by September 30. If the well is suc-
cessful, the water system would have to be recon-
figured by June 30. (An interim agreement covers
the District until the production of the new well is
known.) Baer added the USFS demand must be
determined since a new customer pays the connec-
tion fee based on usage, this will give the USFS a
chance to determine their irrigation needs so a better
estimate on usage can be made and what their costs
will be.
PAGE - 3
USDA FOREST SERVICE, LAKE TAHOE
BASIN LAND MANAGEMENT UNIT
REQUEST FOR WATER SERVICE
(continued)
Additional water rights owned by the USFS were
discussed. They have surface water rights to Taylor
Creek, Fallen Leaf Lake, and Lake Tahoe. The
Clean Water Act requires expensive filtering,
infrastructure, and monitoring in order to utilize
surface water rights.
Richard Solbrig outlined the schedule for the new
Gardner Mountain well. Drilling will begin in August;
water quality will be known by the end of August; and
quantity can be determined by the second week of
September. If the well is a producer, then the neces-
sary piping to connect from the well site to the
equipment storage structure, across the highway, to
connect to the 10" line will be ordered. Well equip-
ment would be purchased over the winter and the well
could be in service by early next year. The well's pro-
duction will be limited by the capacity of the 10" line.
The interim agreement is needed because a line can't
be put into service with water from the well by Sep-
tember 30; therefore, the water needed to serve the
USFS would have to come out of the District's existing
system from the Gardner Mountain zone. Since
there is no guarantee the new well will be a producer,
an interim agreement is needed as a safety mechanism
for the District.
ST057756
SPECIAL BOARD MEETING_.MINUTES - JULY 7, 1999
Juan Palma clarified the difference between
"contract" and "Special Use Permit." He stated it is
the hope of the USFS that in the long-term, once
the well is drilled, and if it is a producer, the USFS
would grant a Special Use Permit to operate the
well to the District; the District could then sell the
water back to the USFS and provide any excess
water to District customers. The USFS would get
water from the deal, while the District would have a
Special Use Permit, which could extend up to 40
years (depending on the amortized investment over
a period of years). The USFS intends to utilize the
period between now and September I to work on
the terms of an interim agreement. Strohm noted
an interim agreement would contain special condi-
tions, however, a long-term commitment would be
the same for the USFS as it is for all other District
customers.
PAGE - 4
USDA FOREST SERVICE, LAKE TAHOE
BASIN LAND MANAGEMENT UNIT
REQUEST FOR WATER SERVICE
(continued)
A draft interim agreement has been developed for
review and comment. Attorney Kvistad will work with
the USFS contracts officer in finalizing the agreement.
Ownership of the well and facilities were discussed.
Colin West and Juan Palma confirmed the constructed
facilities, infrastructure, and water pumped from the
well will be owned by the District; the USFS owns the
land and the hole in the ground that the well is con-
tained in. The USFS permits the land with the District's
investment on it. The annual cost of the Special Use
Permit is based on the percentage of the land value.
The USFS will provide a sketch for the physical con-
nection and disconnection that will be reviewed by
the District and Lukins Brother Water Co. so the
necessary components can be ordered.
Scott Brooke noted that the USFS has no agreement
with Lukins Brother Water Co. The water service
through September 30 will be through Camp
Richardson Resort. The interim agreement thereafter
will be between the District and the USFS. Camp
Richardson Resort has requested they be included
in the negotiations for long-term water service after
the production of the new well is determined.
ST057757
SPECIAL BOARD MEETING MINUTES - JULY 7, 19._99
Deborah Palmer stated Lukins Brother Water Co.
and Camp Richardson Resort have an agreement
with an understanding that Camp Richardson will
provide water to the USFS until September 30, not
directly from Lukins Brother Water Co.
Rhonda McFarlane insisted that the commitment for
long-term water service should be governed by Dis-
trict ordinances. There should be no need for an
agreement, and no need to negotiate, as the long-
term water service will be provided on the same basis
as any other customer of the District. A Special Use
Permit is what will actually be negotiated and put into
place.
Scott Brooke stated that Camp Richardson Resort,
as a significantly affected party, has requested an
interim service contract for the period of September
1999 through May, 2000. As part of that, there is an
understanding that a well will be investigated; de-
pending on the outcome of the well, there will be
another potential long-term relationship negotiated
and entered into.
It was the consensus of the Board to direct staff to
pursue an interim agreement with the USFS, and
possibly Camp Richardson Resort if appropriate, to
be brought back to the Board for approval. The
agreement should protect the District from any undue
liabilities and/or significant loss of water due to their
being supplied.
USDA FOREST SERVICE, LAKE TAHOE
BASIN LAND MANAGEMENT UNIT
REQUEST FOR WATER SERVICE
(continued)
No Board action.
2:10 P.M.
ADJOURNMEN_T
sR~. J?onr~',~O-ard President
h Tahoe Public Utility District
ATTEST: ,:~,.-~L~ F'~~ ..
Katl'{y Sha~, Clerk of Bo~d
South Tahoe Public Utility District
ST057758