03-18-99SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert Baer, General Manager Richard Solbrig Assistant Manager
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
MARCH 18, 1999
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session March 18,
1999, 2:00 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, McFarlane, Noble, Hussmann,
Henderson, Garcia, Rieger, Schrempp, Adams, Clark,
Inglis, Graham, Anderson, Forsythe, Schroeder, Swain,
Trebotich, Bergsohn, Hydrick, Attorney's Kvistad & Slated
Hatch & Parent.
GUESTS:
Judy Brown/City Council Liaison, Andy Bourelle/Tahoe
Daily Tribune; Joyce Blackstone, Roy Hampson.
Mayor Judy Brown thanked Board members and staff
for their presentation to the City Council. The idea of
a joint effort between the City/County/District to ban
MTBE in South Lake Tahoe will be pursued. She read
aloud a letter the City Council sent to Governor Davis
encouraging a ban on MTBE.
COMMENTS FROM THE AUDIENCE
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REGULAR BOARD MEETING MINUTES - MARCH 18, 1999 PAGE
Staff requested Consent Item No. 4 (water disconnection
procedures on property located at 854 Emerald Bay Rd.,
APN 23-182-01) be removed, as the situation has been
satisfactorily resolved.
CORRECTIONS TO THE AGENDA OR
CONSENT CALENDAR
Moved Mosbacher/Second Wallace/Passed Unanimously
to approve the Consent Calendar, as amended:
CONSENT CALENDAR
1 ) US Bank Account - A) Authorized establishment of
account; and B) Adopted Resolution No. 2690-99 estab-
lishing the account;
2) Authorized implementation of the two-week disconnection
procedures for delinquent sewer and/or water accounts;
3) Authorized implementation of the two-week water discon-
nection procedures on the property located at 964 Rubicon
Trail, APN 31-256-031 for failure to perform annual back-
flow assembly test;
5) Obligation to Alpine County for Summer 1999 Fish
Purchases - Authorized payment in the amount of $28,250;
6) Water Financing - Authorized staff to solicit proposals and
negotiate terms for tax exempt debt in order to finance
water system infrastructure;
7) Approved Regular Board Meeting Minutes:
February 18, 1999.
Mike Adams, and the Underground Repair Sewer Crew
were recognized for receiving this award.
PRESENTATION: California Water
Environment Association, Sierra
Section, Collection System of the
Year Award
Mike Adams reported on the success of the I&l sampling
program. There has been a significant reduction of flows
entering the collection system.
PRESENTATION: Results of I&l
(Infiltration / Inflow) Sampling
He also reported that the Grease Interceptor Program
has significantly reduced the amount of grease in the
areas where the program was utilized.
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REGULAR BOARD MEETING MINUTES - MARCH 18, 1999 PAGE - 3
ITEMS FOR BOARD ACTION
Diane Noble reviewed options for Board consideration,
to provide equity between classes, as part of the rate
setting process. A public Workshop will be held April 12.
No Board action.
Presented by Diane Noble. The staff and Board Com-
mittee work on this project is 90% complete. A full Board
review will begin in April. Legal review is not yet complete,
and will continue through adoption of the Code and incor-
poration of the groundwater management section, later
this year.
Moved Gochnauer/Second Strohm/Passed Unanimously
to approve final legal review budget for completing project
in the estimated amount of $8,300.
Dawn Forsythe reported the City of South Lake Tahoe
directed their attorney to research the possibility of form-
ing a Joint Powers Agreement (JPA) between the City,
District, and El Dorado County, with the ultimate goal of
banning the use of MTBE in gasoline in El Dorado County.
In the event Governor Davis does not support a ban, the
JPA will be a necessary tool in initiating a ban within El
Dorado County.
Forsythe also reported on various legislative efforts under-
way, all focused on the goal of eliminating MTBE from
gasoline.
No Board action.
Richard Solbrig reported that staff developed additional
options for the consultants to evaluate and include as part
of their temporary facility plan to increase office space in
the Administration building.
Director Mosbacher stated she felt staff could complete
the work on this project and objected to continuing the
study.
COMPREHENSIVE SEWER RATE
STUDY
ADMINISTRATIVE CODE UPDATE
MTBE PRESENTATION TO CITY
OF SOUTH LAKE TAHOE
INTERIM OFFICE NEEDS STUDY
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REGULAR BOARD MEETING MINUTES - MARCH 18, 1999 PAGE - 4
Moved Wallace/Second Strohm/Mosbacher Voted No/
Passed to approve Task Order No. 2A for Ward-Young
Architects to cover study of additional options from
$8,500 to $15,000.
Attorney Kvistad reported staff is continuing the process
of developing the Groundwater Management Plan (GMP)
which was started in August 1998. He reviewed progress
made to date, and outlined the next steps in the process.
A GMP will give the District authority to detect and immedi-
ately respond to MTBE contamination.
No Board action.
Bob Baer reported that nearly three years have passed
since contracting with Hatch & Parent for general legal
counsel. With the recent loss of Kevin Neese, staff re-
quested a confirmation to continue the District's associa-
tion with Hatch & Parent. Fees will remain at the rate of
$135/hr., as originally agreed to in 1996.
Attorney's Gary Kvistad and Scott Slater, Hatch & Parent,
made a presentation to the Board, and expressed their
commitment to continue representing the District.
It was the consensus of the Board to continue with Hatch
& Parent as the District's general legal services provider.
During their recent trip to Washington D. C., the Legislative
Committee (Wallace/Jones) interviewed firms to provide
assistance in securing federal funds to complete the export
pipeline project. They reported that their recommendation
is for the District to hire two firms to provide representation
(one for each political party) in Washington D. C. They
pointed out the cost for the two firms would be nearly the
same as the one firm the District has used in the past.
Moved Strohm/Second Wallace/Passed Unanimously to
retain ENS Resources (Eric Sapirstein) as the primary
advocate; and retain Impact Strategies (Jeff Fedorchak)
as the secondary advocate for specific duties, contingent
on the General Manager being able to work out the costs.
Moved Strohm/Second Gochnauer/Passed Unanimously
to approve payment in the amount of $606,949.14.
INTERIM OFFICE NEEDS STUDY
(continued)
GROUNDWATER MANAGEMENT
PLAN
LEGAL COUNSEL PROVIDER:
DISTRICT GENERAL COUNSEL
EXPORT PIPELINE REPLACEMENT
PROJECT: WASHINGTON D. C.
REPRESENTATION
PAYMENT OF CLAIMS
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REGULAR BOARD MEETING MINUTES - MARCH 18, 1999 PAGE - 5
County Water Agency/EDWPA/LAFCO Committee:
Baer reported on the recent performance evaluation of
the manager of the County Water Agency. He also report-
ed the purveyors have tentatively scheduled a meeting to
discuss the roles and functions of the agency.
Legislative Funding Ad Hoc Committee: Director Strohm
reported the Lake Tahoe Transportation and Water
Quality Coalition has agreed to add the District's export
pipeline funding request to their list of projects. In return,
the District will provide support for the Coalition's projects,
in a joint effort to obtain federal funding.
Lahontan/SWRCB Communications Ad Hoc Committee:
The legislation sponsored by Assemblyman Oiler (result-
ing from the Lahontan Performance Audit) is before the
legislative council for consideration.
There have been discussions regarding holding a hearing
in South Lake Tahoe to follow up on the Lahontan Perfor-
mance Audit.
Director Mosbacher reported that Alpine County continues
to support the District's efforts on the MTBE issue, and on
using recycled water for fire suppression. She will attend
their annual fish meeting next month.
The Desert Research Institute contract recently came be-
fore the Alpine County Board. Since it didn't reflect what
the Board members thought they had negotiated, it will be
delayed.
Director Gochnauer complimented Director Strohm for his
work with the Lake Tahoe Transportation and Water Quality
Coalition. He also reported on TRPA's deliverables and
their funding needs.
Director Jones did not attend the March 4 Board meeting
because he was attending the ACWA D.C. Conference in
Washington D. C. He reported on updates regarding radon
and MTBE. It was a successful series of meetings, and
there is a lot of legislative support to ban MTBE.
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD MEMBER AD HOC
COMMITTEE REPORTS
BOARD MEMBER REPORTS
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REGULAR BOARD MEETING MINUTES - MARCH 18, 1999 PAGE - 6
General Manager: Bob Baer reported on three items:
1) Paul Hillesheim, the Union representative, has been
replaced by two new Union representatives. Staff is
working on scheduling for this years negotiation process.
2) The California pubic health goal for MTBE was set at
13 ppb.
3) Al Moss, Chevron, has experienced problems with the
underground storage tank's vapor recovery system that was
leaking at his service station. MTBE was detected at levels
of 100,000 ppb. Mr. Moss and his consultant's are working
quickly to remedy the situation. The underground storage
system/gasoline pumping facilities at this site were sup-
posed to have been state-of-the-art systems, costing over
$2.2 million.
President Jones noted he and Rick Hydrick will speak at
EPA's Blue Ribbon Panel MTBE hearing in Sacramento
next week. This may be a good example to present to them.
District Information Officer: Dawn Forsythe gave a legislative
update: Three MTBE bills (Mountjoy, Perata, and Leslie's)
have been assigned to committees. She outlined the pro-
cess the bills will go through. Senator Sher's bill has not
been assigned to a committee at this time, and neither has
Assemblyman Oller's bill regarding the use of recycled water
for fire suppression. Forsythe will attend upcoming hearings
to monitor the progress of these bills.
Richard Solbrig reported on the status of the remaining
emergency project:
Gardner Mountain Replacement Well Emergency of 9/17/98
Under the direction of the District's staff hydrogeologist, the
geophysical testing in the Camp Richardson area is under-
way and is expected to be completed in one week. (The
Camp Richardson area is the alternative area the USFS
requested be explored.)
The data, particularly the depth-to-bedrock information, will
be reviewed by the independent hydrogeologist, who will
then meet with the USFS to determine which site (the loca-
tion by Pope Marsh or by Camp Richardson) will be the
most viable spot to pursue drilling later this summer. The
geophysical testing is expected to cost $5,000.
STAFF REPORTS
STATUS OF EMERGENCY PROJECT
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REGULAR BOARD MEETING MINUTES - MARCH 18, 1999 PAGE - 7
Chief Financial Officer: Rhonda McFarlane reported on
two items:
STAFF REPORTS
(continued)
1) The District's export pipeline replacement project payment
request for $5.5 million was sent to EPA.
2) She will adjust the budget to reflect three changes: a) the
hiring of two firms for representation in Washington D. C.,
b) Arrowhead Well and Gardner Mountain treatment costs;
and c) US Bank grant anticipation note (must have $1 million
on hand).
6:25 p.m.
ADJOURNMENT TO CLOSED
SESSION
7:15 P.M.
RECONVENE TO REGULAR
SESSION
ACTION / REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION
Legal counsel updated the Board regarding this item.
No Board action.
Nothing to report.
No Board action.
Legal counsel and staff updated the Board and
received direction regarding this item.
No Board action.
7:15 P.M.
ATTEST:
Kathy Sharp/CCl~k of the I~ard
South Tahoev Public Utility District
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(c) of
California Government Code/
Conference with Legal Counsel
Anticipated Litigation (two cases)
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
ADJOURNMENT
James R. Jones, .Board President
8uthTahoe ~ic Utility District
ST034658
Our Mission is:
~Vorking
together to
create the
best fu tu re
for oltr
comrnunity
cit of South Lake Tahoe
"making a positiue difference now"
March 18, 1999
Governor Gray Davis
State of California
State Capitol
Sacramento, CA 95814
RE: SB 521; Decision to Ban MTBE
VIA FAX
(916) 445-4633
Dear Governor Davis:
As you know, the City Council of the City of South Lake Tahoe passed
Resolution No. 98-74 urging a ban of the use of MTBE. A copy of this Resolution is
attached and has been submitted as the City's public comments.
At the City Council meeting on March 16, 1999, the Council received an
update from South Tahoe Public Utility District on the continuing impact of MTBE on
our local water supply. In addition, the City Council again discussed its intent to ban
MTBE in South Lake Tahoe.
The purpose of this letter is to stress the urgency for you to take action to
ban MTBE. Our City faces water shortages this summer because MTBE has
contaminated much of our ground water. At the very least, your action should
include an immediate ban of the use of IVlTBE in the Lake Tahoe Basin which is so
very vulnerable to ground water contamination. The City Council urges you to take
this step to protect Lake Tahoe's water supply which is so severely impacted. For
the residents of South Lake Tahoe, as well as those who visit South Lake Tahoe and
use our water supply, an immediate ban is the only "appropriate action" available.
Very truly yours,
CATHERINE L. DiCAMILLO
City Attorney
CLD:Im
Enclosure
cc: The Honorable Mayor and City Councilmembers
Office of the City ltlornel. 1052 Tala Lane. South Lake Tahoe, California 96150-6324
City Attomel (5,10) 542-6040. Legal lnalyst (530) 542-6049. F~ (530) 542-4054
ST034659
CITY OF SOUTH LAKE TAHOE
RESOLUTION NO. 98- 74
RESOLUTION SUPPORTING THE SOUTH TAHOE PUBLIC UTILITY
DISTRICT IN ITS EFFORTS TO MAINTAIN THE CITY'S WATER SUPPLY
RESOLVED, by the City Council of the City of South Lake Tahoe that:
WHEREAS, underground aquifers are the source of drinking water for a large
portion of the City of South Lake Tahoe and in unincorporated areas of El Dorado
County, specifically the communities of Meyers and Christmas Valley; and
WHEREAS, the contamination of a public water supply is a public nuisance which
cities are authorized to abate pursuant to the police powers granted to cities in the
California Constitution, Article XI, Section 7, to protect the public health, safety and
welfare of its citizens; and
WHEREAS, South Tahoe Public Utility District has found that Methyl Tertiary
Butyl Ether (MTBE), a gasoline additive and possible carcinogen, is contaminating
underground aquifers in South Lake Tahoe, and that MTBE contamination is emanating
from gas stations which have installed new tank systems designed to meet the latest
state and federal standards; and
WHEREAS, MTBE has severely impaired the operations of the South Tahoe Public
Utility District by contaminating eight drinking water wells and forcing the shut-down of
four additional wells that are threatened by nearby plumes; and
WHEREAS, the U.S. Environmental Protection Agency has not required the
mandated use of MTBE or any other fuel additive in South Lake Tahoe for air quality
purposes;
NOW, THEREFORE BE IT RESOLVED, that the City Council hereby supports South
Tahoe Public Utility District in its effort to maintain the City's water supply; and
BE IT FURTHER RESOLVED, that the City Council urges the Governor to employ
his executive powers to take action to protect the State's valuable water resources,
including the possible ban of the use of MTBE as an additive to motor vehicle fuels in
the State of California. In addition, we urge the Governor to identify specific areas in
the State where alternative methods are necessary to achieve acceptable air quality
objectives; and
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BE 1T FURTHER RESOLVED, that the City Council urges Federal Environmental
Protection Agency officials to take action to eradicate the threat to the City's drinking
water, and the threat to Lake Tahoe, "our national treasure"; and
BE il' FURTHER RESOLVED, that the City Council intends to consider a ban of
the use of MTBE within the City of South Lake Tahoe to protect water sources which
are vulnerable to contamination by MTBE if other governing agencies do not take action
by April 1, :[999, to protect the City's water supply.
PASSED AND ADOPTED by the City Council of the City of South Lake Tahoe on
October 6, :[998, by the following vote:
AYES: CounciJmembersH. COLE, BROWNt K. COLE, DAVIS & OSTI
NOES:
Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
Hal Cole, Mayor
ATTEST:
2 ST034661
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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