05-20-99 SOUTH TAHOE P. UBLIC UTILITY DISTRICT
"Bastc Serwces for a Complex World"
James jones, President BOARD MEMBERS Christopher H. Strohm, Vice President
Pembroke Gochnauer, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
MAY 20, t999
MINUTES~
The Board of Directors of the South Tahoe Public Utility District met in a regular session, May 20,
1999, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California.
BOARD OF DIRECTOR,S,,:
President Jones, Directors Strohm, Wallace, Gochnauer.
Director Mosbacher was absent.
ROLL CALL
STAFF:
Baer, Solbrig, Sharp, McFarlane, Noble, Taylor, Garcia,
Schroeder, Forsythe, Hussmann, Hydrick, Attorneys
Kvistad and Speich/Hatch & Parent, Attorney Miller/
Miller & Sher.
GUESTS:
~Judy Brown/CSLT Liaison, Andy Bourelle/Tahoe Daily
Tribune, Joyce Blackstone.
Moved Gochnauer/Second Strohm/Mosbacher Absent/
Passed to approve the Consent Calendar, as submitted:
CONSENT CALENDAR
Authorized implementation of the two-week disconnec-
tion procedures for delinquent sewer and/or water
accounts;
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REGULAR BOARD MEETING MINUTES - MAY 20, 1999 PAGE - 2
Credit Card Account with State of California Cai-Card -
Authorized execution of addendum to State of California
Purchase Card Program Master Service Agreement;
A-Line Phase II Tree Seedling Maintenance and
Guarantee -Authorized contract with Kelly Erosion
Control, Inc. to provide maintenance and guarantee for
860 trees in the amount of $9,700;
B-Line Phase III - Approved Task Order No. 21 for
Parsons HBA to complete forest carnivore study in the
amount of $12,230;
Diesel Underground Storage Tank - Approved Task
Order No. 11 for HSI Geotrans to install three monitor-
ing wells around the diesel tank in the amount of
$11,133.
CONSENT CALENDAR
(continued)
ITEMS FOR BOARD ACTION
Richard Solbrig reported three bids were received for this
project, at the May 18 bid opening, for the sitework and
foundation for the new 300,000 gallon Lookout Tank.
Solbrig also reviewed a minor discrepancy related to the
Iow bid - the lump sum for Bid Item No. 15 was not written
in numbers. He recommended this discrepancy be waived.
Moved Gochnauer/Second Strohm/Mosbacher Absent
Passed to waive the minor discrepancy (described above)
and award bid to the lowest responsive, responsible bidder,
C. B. Ebright, in the amount of $98,959.
Ken Schroeder reported four bids were opened at the
May 11 bid opening for the purchase of a new backhoe,
with an extended five-year warranty period. The bid prices
included the trade in of a Case 580 backhoe for $19,000.
Moved Strohm/Second Wallace/Mosbacher Absent/Passed
to award bid to the lowest responsive, responsible bidder,
Arnold Machinery, in the amount of $41,379.44, for the
purchase of a JCB 214 backhoe.
Ken Schroeder reported that the bid received for the back-
hoe described in the item above, was far lower than
anticipated. The price is $8,256 less than the District paid
for the same backhoe two years ago. Staff recommended
LOOKOUT TANK SITEWORK
BACKHOE PURCHASE
BACKHOE PURCHASE 1999-2000
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REGULAR BOARD MEETING MINUTES - MAY 20~ 1999 PAGE - 3
taking advantage of the excellent pricing. A trade in value,
in the amount of $15,075 was given for the District's old
backhoe.
BACKHOE PURCHASE 1999-2000
(continued)
Moved Strohm/Second Gochnauer/Mosbacher Absent/
Passed to approve a second order for a backhoe from
Arnold Machinery for the 1999-2000 budget in the amount
of $60,379.44, less the amount of the $15,075 trade-in
value for the District's old backhoe (the final total amounts
to $45,304.44).
Dawn Forsythe reported this agreement sets up a joint
committee with one representative each from the county,
city, and District. While it does not specifically ban MTBE,
it will facilitate coordination between the agencies to
eliminate MTBE from gasoline sold in South Lake Tahoe,
and to provide information to the public regarding the
adverse effects of MTBE.
COOPERATIVE AGREEMENT ON
MTBE ELIMINATION
By July 1, 1999, the committee will prepare a report to each
of the agencies outlining the process of the state and
federal agencies in eliminating MTBE in gasoline sold in
the Lake Tahoe region, with recommendations on specific
actions that the agencies can take to eliminate MTBE from
gasoline sold here. The report will have an implementation
schedule. The report will also include information on ground-
water monitoring. After July 1, 1999, the committee is to
issue updated reports not less than on a quarterly
basis. The agreement terminates when MTBE is removed
from gasoline sold in California or when an agency terminates
the agreement (with 60 days notice).
Moved Wallace/Second Gochnauer/Mosbacher Absent/
Passed to authorize execution of agreement to coordinate
city, county, and District efforts to eliminate MTBE from
gasoline sold in South Lake Tahoe.
It was the consensus of the Board to appoint Director
Gochnauer to serve as the District's representative on the
joint committee.
Dawn Forsythe summarized the amendments to Ordinance
No. 443. Substantive changes were made to water
restrictions and enforcement provisions, and also incorpor-
ates non-substantive changes, recommended by the
Board's Planning/Ordinance Committee.
WATER CONSERVATION
ORDINANCE NO. 469-99
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REGULAR BOARD MEETING MINUTES - MAY 20, 1999
Moved Gochnauer/Second Strohm/Mosbacher Absent/
Passed to enact Ordinance No. 469-99 amending
Ordinance No. 443 regarding water shortage and drought
response standards.
Dawn Forsythe reported on legislation currently progress-
ing through the California legislature that may directly
affect the District's operations or finances. Staff has
reviewed priority legislation and submitted recommenda-
tions to the Board regarding suggested positions. Forsythe
reviewed the components and impacts of several bills.
A 1999 State Legislation Ad Hoc Committee, consisting of
Directors Wallace and Strohm, was appointed to review
staff's recommended positions when time is of the essence
in responding to the proposed legislation.
Moved Strohm/Second Gochnauer/Mosbacher Absent/
Passed to approve staff's recommendations, as presented.
Rhonda McFarlane reported the 1999-2000 proposed
water budget is fully funded and has been reviewed in
a public hearing on May 6, 1999.
Moved Strohm/Second Wallace/Mosbacher Absent/
Passed to adopt Resolution No. 2695-99 adopting the
budget for the Water Enterprise Fund.
Rhonda McFarlane reported the 1999-2000 proposed
budget is fully funded and was reviewed in a public
hearing on May 6, 1999.
Moved Wallace/Second Strohm/Mosbacher Absent/
Passed to adopt Resolution No. 2694-99 adopting the
budget for the Sewer Enterprise Fund.
Rhonda McFarlane reported Ordinance 468-99 increases
the Water Rates (Schedules 2 and 3) and the Water
Capital Improvement Charges (Schedules 6 and 7) and
increases water consumption charges to $1.72 per
hundred cubic feet (Schedule 3). The Water Capital
Improvement Charge is restricted to funding present
and future capital projects, and any related debt service.
WATER CONSERVATION
ORDINANCE NO. 469-99
(continued)
PAGE - 4
STATE LEGISLATIVE POSITIONS
WATER ENTERPRISE FUND
BUDGET: FISCAL YEAR 1999-2000
RESOLUTION NO. 2695-99
SEWER ENTERPRISE FUND
BUDGET: FISCAL YEAR 1999-2000
RESOLUTION NO. 2694-99
WATER RATE AMENDMENT
ORDINANCE NO. 468-99
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REGULAR BOARD MEETING MINUTES - MAY 20, 1999 PAGE - 5
The impact of this ordinance is to generate $179,000 in
additional revenue for the 1999-2000 proposed water
budget, to be used for General Operating and Maintenance
and the District's Capital Improvement Programs. New
rates will increase revenue 3.5% overall. A public hearing
was held on May 6, 1999.
Moved Wallace/Second Strohm/Mosbacher Absent/Passed
to enact Ordinance No. 468-99, amending Ordinance No.
464, Administrative Code Sections 3.1.108, 3.1.109, 3.1.112,
3.1.113, and superseding Ordinance No. 467-99 in its
entirety.
Rhonda McFarlane reported sewer rate increases vary
from 2.2% to 5%, depending on customer classification.
A Public Hearing was held on May 6, 1999.
Moved Strohm/Second Gochnauer/Wallace Voted No/
Mosbacher Absent to enact Ordinance No. 470-99, amend-
ing Ordinance No. 464, Administrative Code Sections
4.1.104 and 4.1.135, and superseding Ordinance No.
467-98 in its entirety.
Bob Baer reported on the Board's County Water Agency
Standing Committee meeting of May 17. The agency's
policy was reviewed. A condition contained in the policy
states that the District will participate in reviewing the
agency and the way it operates. It was the consensus of
the Board to direct the committee to continue discussions
re: the governance of the County Water Agency.
No Board action.
Moved Wallace/Second Strohm/Mosbacher Absent/
Passed to approve payment in the amount of
$1,181,687.79.
3:00 P.M.
3:05 P.M.
5:10 P.M.
WATER RATE AMENDMENT
ORDINANCE NO. 468-99
(continued)
SEWER RATE AMENDMENT
ORDINANCE NO. 470-99
COUNTY WATER AGENCY ROLES
AND FUNCTIONS
PAYMENT OF CLAIMS
MEETING BREAK
MEETING RESUMED AND
ADJOURNED TO CLOSED
SESSION
RECONVENE TO REGULAR
SESSION
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REGULAR BOARD MEETING MINUTES - MAY 20, 1999 PAGE - 6
ACTION I REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION
Legal counsel updated the Board regarding this item.
No Board action.
Pursuant to Section 54956.9(a) of
California Government Code/Con-
ference with Legal Counsel Existing
Litigation - STPUD v. ARCO, et al,
San Francisco County Superior
Court, Case No. 999128
Legal counsel updated the Board regarding this item.
No Board action.
Pursuant to Section 54956.9(a) of
California Government Code/Con-
ferencewith Legal Counsel Existing
Litigation: Schwake v. STPUD,
Federal Case No. CV-N.93-851-DWH
The Board directed staff regarding this item.
No Board action.
Pursuant to Section 54956.8/Con-
ference with Real Property
Negotiators - Negotiating Parties:
District staff, Mark Lucksinger
Under Negotiation: Property Selec-
tion, Purchase Price, and Terms
These cases were not discussed.
No Board action.
Pursuant to Section 54956.9(c) of
California Government Code/
Conference with Legal Counsel
Anticipated Lifi~lafion (three cases)
This item was not discussed.
No Board action.
Pursuant to Section 54957.6(a)/Con-
ference with Labor Negotiators
Agency Negotiators: Robert Baer,
Nancy Hussmann, Board of Directom;
Employee Organization: Intema'donal
Union of Operating Engineers,
Stationary Local 39, AFL-CIO
Operations Committee: The committee met on May 17.
Minutes of the meeting are available upon request
BOARD MEMBER STANDING
COMMITTEE REPORTS
Planning / Ordinance Committee: The committee will meet
in June to continue work on the Ordinance Codification
project. Bob Mason, public liaison to the committee, will
be gone for the summer.
Legislative Ad Hoc Committee: The committee will meet
May 21 to review the Lake Tahoe Restoration legislation
proposed by Senator Feinstein.
BOARD MEMBER AD HOC
COMMITTEE REPORTS
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PAGE - 7
REGULAR BOARD MEETING MINUTES - MAY 20~ 1999
General Manager: Bob Baer reported that the District's
general counsel is working with Alpine County's counsel
to consolidate all existing agreements between Alpine
County and the District. The agreements between the
District and individual ranchers will be reviewed next.
Richard Solbrig reported on the status of the remaining
emergency project:
Gardner Mountain Replacement Well Emergency of
9/17/98 - The draft gravity metric data has been received.
It will be used to finalize the potential for the site at Camp
Richardson. Additional gravity tests will be performed
on the ground next week. The results of the tests will be
evaluated and used to determine which of the two sites is
best suited to pursue drilling the test well.
Chief Financial Officer: Rhonda McFarlane reported after
addressing concerns related to MTBE, the loan with
LaSalle bank was funded today. MTBE impacts to the
District totals $6 million to date.
District Information Officer: Dawn Forsythe reported a
media training workshop will be held for Board members
on May 28.
District General Counsel: Gary Kvistad reported on two
items:
1) Work on the District's AB 3030 (groundwater manage-
ment plan) is underway.
2) The presentation he made to the WateReuse Associa-
tion re: impacts of MTBE on recycled water was well
received.
5:45 P.M.
STAFF REPORTS
STATUS OF EMERGENCY PROJECT
ADJOURNMENT
James R. Jones, Board President
South Tahoe Public Utility District
ATTEST:~ _zJ ~'Y~ ~
K~thy sharF~k'of the I~oard
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,
AND IS NOT A PRECONDITION FOR ATTENDANCE
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