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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 ST034652 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. ST034653 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 ST034654 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 ST034655 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 ST034656 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 ST034657 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 ST034660 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 ST034662