04-15-99SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
. Baer General M r, er Richard Solbria, Assistant Manaaer
Robed
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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
APRIL 15, 1999
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session April 15,
1999.2:10 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California.
BOARD OF DIRECTORS:
President Jones, Directors Strohm, Wallace, Gochnauer,
Mosbacher.
ROLL CALL
STAFF:
Baer, Solbrig, Sharp, Taylor, Noble, T. Powers, Brown,
Garcia, Henderson, Hoggatt, Hydrick, R. Johnson,
Schroeder, Forsythe, Bergsohn, Attorney Kvistad.
GUESTS:
Judy Brown/City Council Liaison, Andy Bourelle/Tahoe
Daily Tribune, Donna Barker/South Y Shell, Winston
Hickox and James Spagnole/California Environmental
Protection Agency, Joyce Blackstone/Tahoe Resource
Conservation District
Representatives from California EPA were present, on
behalf of Governor Davis, to receive the first delivery of
MTBE-free gasoline from Tosco. Mr. Hickox reported
Chevron has also indicated they would supply MTBE~
free fuel to the Tahoe basin by July. He also pledged that
Lahontan will continue to work with the District to resolve
MTBE related problems.
COMMENTS FROM THE AUDIENCE
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REGULAR BOARD MEETING MINUTES -APRIL 15, 1999 PAGE -2
Donna Barker, co-owner of South Y Shell, came before
the Board. She reported that her station, in partnership
with Shell, have taken a conservative approach in supply-
lng MTBE-free gasoline, in order to ensure a dependable
supply. She stated that the gasoline service system current-
ly being used at the South Y Shell is a state-of-the-art
system. The MTBE problem at that site occurred prior to
the installation of the new system; remediation efforts are
underway.
Ms. Barker also expressed her concerns regarding a pre-
sentation staff made to the Tahoe Valley School, where a
discussion of MTBE was included in the Water Conserva-
tion Program.
Joyce Blackstone, Tahoe Resource Conservation District,
thanked the Board and District staff for their help in obtain-
ing the grant for the Backyard Conservation Program.
Consent Items a. and c. were brought forward prior to
Board action.
Moved Mosbacher/Second Wallace/Passed Unanimously
to approve the Consent Calendar, as amended:
b. Lower Shop Paving - Authorized staff to advertise for
bids;
d. Backhoe Replacement - Authorized staff to advertise
for bids;
e. Water Service Vehicle - Authorized purchase of a cab
and chassis from Folsom Ford (through the State of
California cooperative purchase program) in the amount
of $33,134 plus tax (less $500);
f. Approved Regular Board Meeting Minutes: March 4, 1999.
COMMENTS FROM THE AUDIENCE
CORRECTIONS TO THE AGENDA OR
CONSENT CALENDAR
CONSENT CALENDAR
ITEMS FOR BOARD ACTION
Ken Schroeder reported the wet well at Pioneer Village
Pump Station is in need of immediate repair, as it con-
tinually leaks. Staff recommends that the same fiberglass
lining that has been used to rehabilitate sewer manholes
PIONEER VILLAGE PUMP STATION
WET WELL LINING
ST034637
REGULAR BOARD MEETING MINUTES - APRIL 15, 1999 PAGE - 3
be utilized in the wet well. The product and method of
installation is a patented process, which is supplied
through the sole source supplier and installer.
Moved Gochnauer/Second Strohm/Passed Unanimously
to: A) Authorize exception to bidding requirement for a
sole source purchase; and B) Authorize purchase and
installation of fiberglass lining from Tejon Construction,
in the amount of $16,900.
Jim Hoggatt reported five bids were received for this pro-
ject, at the April 13 bid opening. Hoggatt also reviewed
a minor discrepancy related to the Iow bid - the unit price
was written in words, as a total amount, rather than the
price per lineal foot. He recommended this discrepancy
be waived.
Moved Strohm/Second Gochnauer/Passed Unanimously
to waive the discrepancy (described above) and award
bid to the lowest responsive, responsible bidder, C. B.
Ebright, in the amount of $106,540.
The District's financial advisor, Bartle Wells, analyzed
four types of financing for borrowing $5 million for the
District's water system. They recommended that financing
with LaSalle Bank be pursued. The Finance Committee
reviewed and agree with this recommendation.
It was the consensus of the Board to direct staff to negoti-
ate financing with LaSalle Bank, with Bank of America as
the alternate position for negotiation.
Bond counsel is needed to prepare certain documents
related to the tax exempt debt issuance and review to all
documents prepared by the lender. Additionally, bond
counsel will provide a legal opinion that the debt issuance
is a valid and binding obligation of the District, and that the
interest is exempt from federal and state income tax.
Moved Strohm/Second Gochnauer/Passed Unanimously
to approve engagement of Jones Hall, attorneys at law, as
bond counsel, in the amount of $15,000.
Bob Baer reported the District retained Environmental
Standards-West to evaluate the method detection level
(MDL) for MTBE by the District's contract laboratories,
PIONEER VILLAGE PUMP STATION
WET WELL LINING
(continued)
FLAGPOLE TANK SITEWORK
WATER FINANCING
WATER FINANCING
MTBE DETECTION LEVELS
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REGULAR BOARD MEETING MINUTES - APRIL 15, 1999 PAGE - 4
Zymax and Alpha Analytical. Environmental Standards-
West conducted laboratory audits and reviewed each lab's
supporting documentation for achieving their respective
MDL for MTBE. It has been verified that both lab's used
by the District can detect MTBE at 0.2/~g/L (parts per
billion).
The evaluation is part of an ongoing study to analyze
MTBE and its achievable detection limits. The full report
will be distributed upon its completion.
No Board action.
Bob Baer reported that once an official MTBE Policy is in
place, a Water Conservation Program will be developed.
The program will describe how the water system can be
operated, in order to comply with the policy.
Moved Wallace/Second Strohm/Passed Unanimously to
adopt the MTBE Policy. (The policy becomes a part of
these minutes by reference herein, as attachment 1.)
Marilyn Keller voiced her concerns that the public be
notified if, due to drastic measures, MTBE contaminated
water ever has to be utilized, so that alternative water
supplies (i.e., bottled water) can be planned for.
Moved Wallace/Second Strohm/Passed Unanimously
to approve payment in the amount of $395,486.55.
MTBE DETECTION LEVELS
(continued)
MTBE POLICY
PAYMENT OF CLAIMS
CONSENT ITEMS BROUGHT FORWARD FOR ACTION / DISCUSSION
Director Mosbacher received clarification regarding
two accounts located at the same address.
Moved Mosbacher/Second Gochnauer/Passed
Unanimously to authorize implementation of the
two-week disconnection procedures for delinquent
sewer and/or water accounts.
Director Mosbacher received clarification regarding the
impacts the office needs study may have on the timing
for the installation of the carpet. Staff will coordinate
any changes with the bidders.
Moved Gochnauer/Second Mosbacher/Passed
Unanimously to authorize staff to advertise for bids.
DISCONNECTION PROCEDURES
FOR DELINQUENT SEWER AND/OR
ACCOUNTS
(Consent Item a.)
RECARPET ADMINISTRATION
BUILDING
(Consent Item c.)
ST034639
REGULAR BOARD MEETING MINUTES - APRIL 15, 1999 PAGE
Finance Committee: The committee met April 14 regarding:
the status of the self-funded medical insurance, and small
revisions to the proposed sewer/water budget. Minutes
of the meeting are available upon request.
Water and Wastewater Operations Committee: The com-
mittee met April 12. A tour of the Diamond Ditch was
included, as part of the meeting. Meeting minutes are
available upon request.
County Water A,qency/EDWPA/LAFCO Committee:
In a facilitated meeting, the El Dorado County water
purveyors met on April 12 regarding the roles, gover-
nance, and functions of the water agency. Once fully
developed, their recommendations will be presented
to the Board of Supervisors for consideration.
Legislative Funding Ad Hoc Committee: A schedule of
appointments for the upcoming trip to Washington D. C.
was distributed.
EPA's Carol Browner believes the MTBE problems will be
resolved by the EPA Blue Ribbon Panel. Congressmen
Pombo and Franks have unveiled legislation against
MTBE.
While in Washington D. C., representatives of the Lake
Tahoe Transportation & Water Quality Coalition met with
EPA and communicated the Coalition's support for the
export pipeline project.
Lahontan/SWRCB Communications Ad Hoc Committee:
Director Strohm reported that Mr. Hickox, Cai/EPA,
encouraged the District to seek regulatory control of the
groundwater.
Governor Davis still needs to make one more appointment
before the Lahontan Regional Board will have enough
Board members for a quorum.
Director Mosbacher requested that staff investigate if, and
how, groundwater may be impacted by the activities pro-
posed in the Sierra-Nevada Framework's forest plan. Even
though plan proponents acknowledged the groundwater will
be impacted in some way, they stated the resources didn't
exist to address this in the plan.
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD MEMBER AD HOC
COMMITTEE REPORTS
BOARD MEMBER REPORTS
ST034640
REGULAR BOARD MEETING MINUTES - APRIL 15, 1999 PAGE
Director Gochnauer reported the following items:
1) He attended the Mountain Counties Water Resources
Association's Day in the Capitol.
2) Lahontan spoke before the Lodging Association
regarding MTBE remediation efforts.
3) Rezoning along Highway 89 will be discussed with the
City and TRPA on April 19.
BOARD MEMBER REPORTS
(continued)
Director Jones reported he will attend the fourth EPA Blue
Ribbon Panel meeting while he's in Washington D. C.
ACWA's spring conference is being held at Lake Tahoe
May 5 - 7. He encouraged Board members to attend.
General Manager: Bob Baer reported the meeting between
the City, County, and District, regarding a joint effort to
ban MTBE, will take place April 16.
STAFF REPORTS
Manager of Customer Service: Diane Noble reported on
three items:
1) The meeting with Lakeside Park has not been scheduled.
2) Due to a problem with the Gardner Mountain Pump
Station, a nearby resident has been relocated to a hotel,
while his house is being recarpeted.
3) She distributed a matrix of rate comparison options deriv-
ed from the Sewer Rate Design Workshop held on April 12.
Richard Solbrig reported on the status of the remaining
emergency project:
STATUS OF EMERGENCY PROJECT
Gardner Mountain Replacement Well Emergency of
9/17/98 - An independent hydrogeologist has been retain-
ed to plot gravity data for the South Tahoe area. That data
will be used to evaluate the two sites for the Gardner Moun-
tain well, and can also be used to evaluate future well sites
in the Meyer's area and down the North Upper Truckee
corridor.
District Information Officer: Dawn Forsythe reported the
bills sponsored by Assemblyman Oiler (legislation related
to the Lahontan performance audit, and the use of recycled
water for fire suppression) have been made into two year
bills (meaning a committee will hear the bills this summer,
STAFF REPORTS
ST034641
REGULAR BOARD MEETING MINUTES - APRIL 15, 1999 PAGE - 7
with the remainder of the process taking place next year).
The committee has indicated they would like to hold joint
hearings at Lake Tahoe in August.
District General Counsel: Gary Kvistad reported work on
the Groundwater Management Plan continues. The next
meeting of the Stakeholders Advisory Group will take place
May 7.
4:00 P.M.
4:05 P.M.
4:55 P.M.
STAFF REPORTS
(continued)
MEETING BREAK
MEETING RESUMED AND
ADJOURNED TO CLOSED SESSION
RECONVENE TO REGULAR
SESSION
ACTION / REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION
Legal counsel and staff updated the Board and
received direction regarding this item.
No Board action.
No reports.
No Board action.
Legal counsel updated the Board regarding this item.
No Board action.
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
Pursuant to Section 54956.9(c) of
California Government Code/
Conference with Legal Counsel
Anticipated Liticl_ ation (three cases)
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 54957.6(a)/Con-
ference with Labor Negotiators
Agency Negotiators: Robert Baer,
Nancy Hussman, Board of Directors;
Employee Organization:
International Union of Operating
Engineers, Stationary Local 39,
AFL-CIO
ST034642
REGULAR BOARD MEETING MINUTES - APRIL 15, 1999 PAGE
4:55 P.M.
ADJOURNMENT
Ja~es R. Jones, Bo/a?'President
)~Uth Tahoe Publid-'t3t'~ty District
ATT E ST:'~~--~_~.,/~'/~Z-~t-¢?
Kathy Shar~;lerk of the Board
South Tahoe Public Utility District
ST034643
Attachment 1
SOUTH TAHOE PUBLIC UTILITY DISTRICT
POLICY REGARDING METHYL TERTIARY BUTYL ETHER (MTBE)
It is the policy of the South Tahoe Public Utility District not to supply
drinking water containing detectable concentrations of MTBE to its
customers, if reasonable alternatives exist. To achieve this goal, the
following actions will be taken:
a)
When MTBE is detected in any District well, the well will be
placed on stand-by status and the Board will be notified.
b)
The staff shall identify and utilize all reasonably available
alternatives to the use of any well in which MTBE has been
detected.
c)
If the staff determines that the continued operation of any
District well is likely to cause a nearby plume of MTBE to
contaminate any District well, it will notify the Board and place
that well on stand-by status, as directed by the Board.
d)
In the event of a water shortage emergency, and voluntary and
mandatory conservation measures have proven to be inadequate,
standby wells will be utilized, in accordance with the
contingency plan, to the extent and for the time period
necessary to provide for customer water demand. Appropriate
notice will be provided to the public.
e)
Staff will prepare a contingency plan and submit it to the Board
for its review to establish the priority for the utilization of wells
placed on stand-by status because of MTBE. The contingency
plan shall ensure that only wells with the lowest concentrations,
if any, of MTBE are activated to meet emergency needs.
Adopted 4/15/99
ST034644
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.
ST034645