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02-18-99 SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" Robert Baer, General Manager Richard Solbrig, Assistant Manager :;:;:;:;:;:;:;:::;:;:;:;:::;:;:::::;:;:;:::;:;:;:;:;:;:;:;:;:.;.;.:;:!:!:(,:!:;:;:!:::!:!:!:::;:;:;:;:;:;:;:::!:;:;:;:::!:;:::;:;:!:;:!:;:!:';':;:;:;:;:;:;:;:;:;:::::'X'X;:!:'X;:!:!:!:!:;:;:!:;:!:;:i:;:;:;:;:;:;:::;:':':XQ:!:!:!:!:!:;:;:!:!:;:':;:;:;:;:;:;:;:::;:';')X::C!X;:;:!Xij,);j):!:j:!:!:;:!X::!:!:j:!:::i:;:;:;);':::;:';'):';::::1:!:;);;:;):;;(;:,:;:::1);;:1:':':':;:!:;:;:;:::;:::;:;:;:::::::;:::':(';';':;:':;:'X:Xj:!:;:!:;:!:!:;:;:::;:;:;:;:;:;:.:;:;:;:;:::;:.:;:.;.:;:.:;:;:;:;:;:;:;:!:;:;:;:;:: James Jones, President BOARD MEMBERS Christopher H. Strohm, Vice President Duane Wallace, Director Mary Lou Mosbacher, Director Pembroke Gochnauer, Director . ....................,.....'.,.......................................,........ ..........'........... ...,............................................................. .............................'.'...................'....... ...........,....................... ........................................................- ... . ....;.,.;...;.;.;.;.;.;.;.;.;.;.;.;.;.;...;...;.....................................;.........;.;.....;.............................................;...........;.........................;.............;.;.;.....;...........;...;...............,.....;...;...;.......;.............................................................;................................1......;...................................................;.........;.....;.....;.......;.;...;.;.;v;...;...;.....;.;.......;.;.........;...;.;...;.....;.;...;.;.;.;.;...;.;.;.;.;.; 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 ST007104 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 ST007105 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 ST007107 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 --:;::? 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 \ .../.NAME I ....iADDRESS ..i\ i.... ....PHON.E # 1 ~"- "'''-" ~\ ~~ "