02-18-99
SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert Baer, General Manager Richard Solbrig, Assistant Manager
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James Jones, President BOARD MEMBERS Christopher H. Strohm, Vice President
Duane Wallace, Director Mary Lou Mosbacher, Director Pembroke Gochnauer, Director
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REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
FEBRUARY 18, 1999
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session February
18, 1999, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe,
California.
BOARD OF DIRECTORS:
President Jones, Wallace, Strohm, Gochnauer,
Mosbacher.
ROLL CALL
STAFF:
Solbrig, Sharp, McFarlane, Swain, Noble, Rieger,
Garcia, M. Alsbury, Forsythe, Brown, Bird, Attorney
Kvistad.
GUESTS:
Judy Brown/City Council Liaison, Tom Gould/Economic
and Engineering Services, Inc.
The loss of Kevin J. Neese, District General Counsel,
was recognized with a moment of silence.
Consent items 4 and 6 were brought forward for dis-
cussion prior to Board action.
CORRECTIONS TO THE AGENDA OR
CONSENT CALENDAR
Moved Mosbacher/Second Gochnauer/Passed
Unanimously to approve Consent Calendar as amended:
CONSENT CALENDAR
ST007102
REGULAR BOARD MEETING MINUTES - FEBRUARY 18, 1999
PAGE-2
1) Authorized implementation of the two-week disconnec-
tion procedures for delinquent sewer and/or water
accounts;
2) Authorized implementation of the two-week water dis-
connection procedures on the property located at 2105
Ruth Avenue, APN 23-311-411 for failure to perform
annual backflow assembly test;
3) Diesel Tank Upgrade - Authorized payment of additional,
unforeseen expense to L. A. Perks Plumbing and Heat-
ing, in the amount of $5,402.29;
5) Heavenly Valley Annexation - A) Approved Negative
Declaration; and B) Authorized filing a Notice of
Determination and a Deminimis Impact Statement with
the EI Dorado County Clerk;
7) Approved Regular Board Meeting Minutes:
January 21, 1999.
Tom Gould presented the next step in the rate setting
process: Revenue Requirements and Cost of Service.
Using an overhead slide presentation, he reviewed: the
process and methodology of setting cost based sewer
rates, development of the revenue requirements, results
of the cost of service analysis, and decisions required to
proceed on to rate design.
Mr. Gould received and clarified questions from the Board.
He requested direction regarding the overall rate adjust-
ment at this time, and on the cost of service. The Board
requested clarification regarding key assumptions and
key approaches, for better insight as to how the con-
clusions were reached. Mr. Gould will prepare an over-
view of the methodology used.
4:00 P.M.
4:10 P.M.
Steve and Donna Panos did not appear. Diane Noble
reported staff verified the proper billing had been applied.
The property owners were also advised of the option
to meter their water usage.
CONSENT CALENDAR
(continued)
PRESENTATION: Proposed Com-
prehensive Sewer Rate Study, by Tom
Gould, Energy Resources Management
Consultants
MEETING BREAK
MEETING RESUMED
REQUEST TO APPEAR BEFORE
THE BOARD: Steve and Donna Panos,
3629 Spruce Avenue, APN 27 -321-
13-002 -01
ST007103
REGULAR BOARD MEETING MINUTES - FEBRUARY 18,1999
PAGE-3
ITEMS FOR BOARD ACTION
Rhonda McFarlane reported the District's water capital
reserve funds have been, and will continue to be, sig-
nificantly depleted as a result of expenditures to address
the MTBE contamination. The District will need to issue
tax exempt debt financing to replenish the water capital
reserve fund for design and construction of replacement
infrastructure. The financing will likely take place in the
next few months. She recommended the Board adopt
this resolution in order for the current capital costs to be
eligible for the financing.
Details on the financing will be reviewed with the Finance
Committee in early March.
Moved Wallace/Second Strohm/Passed Unanimouslv to
adopt Resolution 2689-99 regarding financing water system
infrastructure through future issuance of tax exempt debt.
Moved Wallace/Second Strohm/Passed Unanimousv
to approve payment in the amount of $407,492.14.
WATER INFRASTRUCTURE
FINANCING REIMBURSEMENT
PAYMENT OF CLAIMS
CONSENT ITEMS BROUGHT FORWARD FOR ACTION / DISCUSSION
Richard Sol brig noted that two additional letters, from
Caltrans and the California/Nevada Trails Assoc., were
received regarding the Negative Declaration. Staff's
responses are included in the document, and all concerns
have been satisfactorily addressed.
Moved Mosbacher/Second Strohm/Passed Unanimousv
to A) Approve the Negative Declaration; and B) Authorize
filing a Notice of Determination and a DeMinimis Impact
Statement with the EI Dorado County Clerk.
Director Mosbacher received clarification that this item
is not a part of the City's Redevelopment project.
Moved Wallace/Second Mosbacher/Passed Unanimously
to authorize staff to advertise for bids.
Executive Committee: The committee met February 17
regarding the managers' incentive program.
B-L1NE: PHASE II
(Consent Item No.6)
HIGHWAY 50 WATERLINE
REPLACEMENT
(Consent Item No.4)
BOARD MEMBER COMMITTEE
REPORTS
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REGULAR BOARD MEETING MINUTES - FEBRUARY 18,1999
PAGE-4
Finance Committee: The committee will meet in March
regarding the 1999/00 budget.
Water and Wastewater Operations Committee: The
committee met February 16. Minutes of the meeting
are available upon request. Director Gochnauer
reported on two items:
1) Ray Carreau, who appeared before the Board on
February 4, attended the meeting. The committee
explained the District's monitoring procedures, which
will remain the same for Tahoe Keys Marina. The
committee will review the results of the testing in six
months and then make a recommendation regarding
the frequency of testing.
2) The Arrowhead Well will not be on-line for summer
usage.
PlanninQ/Ordinance Committee: The committee will meet
February 19 to continue work on the Ordinance Codifica-
tion project.
County Water AQency/EDWPAlLAFCO Committee:
Directors Wallace and Strohm met EI Dorado County
Board Supervisor, Penny Humphries.
Legislative FundinQ Ad Hoc Committee: Director Strohm
reported the District presented its funding needs to the
Lake Tahoe Transportation and Water Quality Coalition
for inclusion with the coalition's funding request. The
presentation was made to the Coalition, EPA, and Lahon-
tan during a meeting on February 15. At this point, the
Coalition is not in favor of supporting the District's request.
Lahontan/SWRCB Communications Ad Hoc Committee:
Director Strohm reported on two items:
1) He testified before the Joint Audit Committee with
regards to contamination and agencies' response to
underground storage tank issues on February 9. It is
possible a future hearing may be held in South Lake
Tahoe.
2) Senator Leslie introduced legislation regarding MTBE.
BOARD MEMBER COMMITTEE
REPORTS
(continued)
BOARD MEMBER AD HOC
COMMITTEE REPORTS
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REGULAR BOARD MEETING MINUTES - FEBRUARY 18, 1999
PAGE-5
Director Mosbacher reported on four items:
BOARD MEMBER REPORTS
1) She thanked staff for issuing Special Use Permits for the
MTBE remediation sites.
2) EID sent a notice to their customers that senior citizens
and pregnant women should not drink water from EID's
system, due to poor water quality.
3) She reported on an article contained in the ACWA
Washington D. C. Report regarding EPA's request "that
strict interpretations of refinance provisions could delay the
construction of projects and, therefore, they are suggesting
that the projects proceed even before receiving the reim-
bursement from the state." Director Mosbacher remarked
if the EPA has that choice, the District should consider
requesting that process for the export pipeline project.
4) On February 16, the Alpine County Board of Supervisors
passed a resolution that was sent to the state against MTBE.
They supported an immediate ban of the use of MTBE as a
fuel oxegenate in Califorina gasoline. It further advocates
the adoption of urgency legislation by the Governor support-
ing same. After the Western States Petroleum Association
learned that Alpine County was planning to oppose MTBE,
they sent the Board a misleading missive asking them not
to oppose MTBE, in an attempt to defer their decision to
support a ban.
Assistant Manager/Enqineer: Richard Solbring reported
on two items:
STAFF REPORTS
1) The TRPA hearing officer has issued the permit for
B-Line Phase II. The permit for A-Line Phase III is on
TRPA's February 24 agenda for consideration.
2) He will meet with Don Jardine regarding the request
from the Alpine Christian Community Church to purchase
property owned by the District.
Richard Sol brig reported on the status of the remaining
emergency project:
STATUS OF EMERGENCY PROJECT
Gardner Mountain Replacement Well Emerqencv of
9/17/98 - In response to the requirement by the USFS, the
District will hire a hydrogeologist to determine if water
levels at Pope Marsh are impacted by pumping. This re-
quirement must be satisfied before the project can proceed.
ST007106
REGULAR BOARD MEETING MINUTES - FEBRUARY 18,1999 PAGE - 6
Chief Financial Officer: Rhonda McFarlane reported the STAFF REPORTS
revised grant application is nearly ready for signature.
There are two pending two issues: 1) If congress were
to direct EPA, could the pre-award costs become a grant
condition; and 2) EPA has requested that the timeline
regarding the repair/replacement schedule be signed off
by Lahontan. A lenghty discussion regarding the funding
request followed.
District Information Officer: Dawn Forsythe reported that
the poster campaign for water conservation is underway.
5:30 P.M.
6:05 P.M.
ADJOURNMENT TO CLOSED
SESSION
RECONVENE TO REGULAR
SESSION
ACTION I REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION
Legal counsel and staff updated the Board regarding
this item.
No Board action.
Legal counsel and staff updated the Board regarding
this item.
No Board action.
Legal counsel and staff updated the Board regarding
this item.
No Board action.
(5:55 p.m. - Director Wallace left the meeting at this
point.)
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(b) of
California Government Code/
Conference with Legal Counsel
Anticipated LitiQation (one case)
Pursuant to Section 54956.9(a) of
California Government Code/Con-
ference with Legal Counsel Existing
Litigation - STPUD v. ARCO, et ai,
San Francisco County Superior
Court. Case No. 999128
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REGULAR BOARD MEETING MINUTES - FEBRUARY 18, 1999
PAGE-7
Bya unanimous vote of the four directors present
(Director Wallace was absent), the Board approved
the Managers' 1999 Incentive Program.
Pursuant to Section 54957.6(a) of
California Government Code/Con-
ference with Labor Negotiators:
Agency Negotiators - Board of
Directors, Bob Baer; Employee
Organization - STPUD Management
Staff
6:05 P.M.
ADJOURNMENT
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A TTEST: ':~~..A
Kat y Sharp lerk of the B rd
South Tahoe Public Utility District
ST007108
DATE: ~b. /~. 19q:::;
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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