05-04-00SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert Baer, General Manager Richard Solbri~h Assistant Manager
Christopher H. Strohm, President BOARD MEMBERS Pembroke Gochnauer, Vice President
James Jones, Director Mary Lou Mosbacher, Director Duane Wallace, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
MAY 4, 2000
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session, May 4,
2000, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California.
BOARD OF DIRECTORS:
President Strohm, Directors Wallace, Jones, Gochnauer,
Mosbacher.
ROLL CALL
STAFF:
Baer, Solbrig, Sharp, McFarlane, Noble, Hrbacek, Rieger,
Cocking, Attorney Kvistad.
GUESTS:
Judy Brown/City of South Lake Tahoe Liaison, Danny
Lukins/Lukins Brothers' Water Company, Roseanne
Chamberlain/Local Agency Formation Commission
(LAFCO), Herman Zellmer/Alpine County Board of
Supervisors, Mark DeMaio/Alpine County Engineer,
Harold Singer, Alan Miller, Judith Unsicker, and Hannah
Schembri/Lahontan Regional Water Quality Control
Board, Andrew Strain/Heavenly Valley Resort, David
Kelly, Joyce Blackstone.
Staff requested Consent Item e. (Echo View Well Aban-
donment Agreement) be removed and placed on the next
regular meeting agenda.
CONSENT CALENDAR
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REGULAR BOARD MEETING MINUTES - MAY 4, 2000 PAGE - 2
Moved Mosbacher/Second Gochnauer/Passed Un-
animously to approve the Consent Calendar as amended:
Authorized implementation of the two-week discon-
nection procedures for delinquent sewer and/or water
accounts;
Authorized implementation of the two-week water dis-
connection procedures on the property located at 3621
Wemer Salas Drive, APN 27-203-06 for failure to per-
form annual backflow assembly(ies) test;
Authorized implementation of the two-week water dis-
connection procedures on the property located at 964
Rubicon Trail, APN 31-256-031 for failure to perform
annual backflow assembly(ies) test;
Authorized implementation of the two-week water dis-
connection procedures on the property located at 1056
Emerald Bay Road, APN 23-430-3207 for failure to per-
form annual backflow assembly(ies) test;
e. Echo View Well Abandonment Agreement - Item
removed;
f. MTBE Interim Water Supply Master Plan - Approved
increase to Task Order No. 15 in the amount of $28,200;
g. Approved Special Board Meeting Minutes:
April 20, 2000;
h. Approved Regular Board Meeting Minutes:
April 20, 2000.
CONSENT CALENDAR
(Continued)
ITEMS FOR BOARD ACTION
Bob Baer reported Hatch and Parent has been the
District's counsel since 1996. The firm provides legal
services such as general counsel, as well as specialized
services for employment law, litigation, and water related
issues.
Hatch and Parent has not requested an increase in fees
in four years. The Executive Committee has met several
REPRESENTATION AGREEMENT
FOR PROFESSIONALLEGAL
SERVICES
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REGULAR BOARD MEETING MINUTES - MAY 4, 2000 PAGE - 3
times with Gary Kvistad to develop an agreement that
meets the needs of both the District and Hatch and Parent.
An informal survey conducted by the staff has determined
that the proposed fees are competitive when compared to
other firms of similar reputation and expertise. The pro-
posed rates for specialty services, which represent 50%
of the billings, are favorable for the District.
Another advantage of using Hatch and Parent is the
absence of conflict of interest issues in our area. Hatch
and Parent has continued their commitment to only re-
present the District in the Lake Tahoe area.
The Executive Committee recommends approval of the
Representation Agreement. Gary Kvistad addressed
specific concerns raised by Board members.
Roseanne Chamberlain commented on Hatch and Parent's
effectiveness in completing the Heavenly Valley annexation
project.
Kvistad pointed out a minor correction to the contract.
Moved Wallace/Second Jones/Passed Unanimously to
approve agreement with Hatch and Parent including the
correction.
Moved Jones/Second Gochnauer/Passed Unanimously
to approve payment in the amount of $440,590.57.
REPRESENTATION AGREEMENT
FOR PROFESSIONAL LEGAL
SERVICES
(continued)
PAYMENT OF CLAIMS
PUBLIC HEARING
President Strohm opened the public hearing at 2:30 p.m.
Richard Solbrig reported this hearing was publically
noticed and affected property owners were notified
according to requirements of the law.
A portion of Heavenly Valley, including a small part
in Alpine County operated by Heavenly Valley, are
included in this annexation. The annexation request
has been approved by both El Dorado County and
Alpine County LAFCOs. This public hearing is being
held to provide the property owners whose property
is being annexed the opportunity to comment or
protest.
HEAVENLY VALLEY ANNEXATION:
HEAR AND RECEIVE PUBLIC
TESTIMONY, OBLIGATIONS, OR
EVIDENCE WHICH ARE MADE,
PRESENTED OR FILED REGARDING
ANNEXATION OF 3,858-ACRES
INTO THE DISTRICT SERVICE
BOUNDARIES
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REGULAR BOARD MEETING MINUTES - MAY 4, 2000 PAGE - 4
Roseanne Chamberlain, LAFCO, stated since no
protests were submitted, she recommended the
Board determine the sufficiency of the protest is
zero. The Board can adopt a resolution today
ordering the annexation of the Heavenly Valley
Ski area subject to the boundaries, legal description,
terms and conditions, as approved by LAFCO.
President Strohm called for any landowners
present to come forward at this time with any oral
or written protest with regard to this annexation.
There were no oral or written protest submitted.
Andrew Strain, Heavenly Valley, encouraged support
for the annexation.
No other public comments were received.
President Strohm closed the hearing at 2:45 p.m.
Moved Strohm/Second Gochnauer/Passed Unanimously
to order the annexation of the Heavenly Valley Ski area
subject to the boundaries, legal description, terms and
conditions, as approved by LAFCO, and to direct staff to
prepare a resolution reflecting this action and to complete
the necessary filings and requirements under the law; and
to authorize the Board President to sign the resolution
without further action of the Board.
Water and Wastewater Operations Committee: The
committee met May 1. Minutes of the meeting are
available upon request.
Planning Committee: The committee met regarding
sewer capacity transfers. Minutes of the meeting are
available upon request.
U.S. Forest Service Special Use Permit Ad Hoc
Committee: The committee met April 26 and May 4
regarding property terms.
Director Mosbacher reported on two items:
1 ) She testified before a Senate committee regarding
the use of recycled water for fire protection. Senator
PUBLIC HEARING
(continued)
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD MEMBER AD HOC
COMMITTEE REPORTS
BOARD MEMBER REPORTS
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REGULAR BOARD MEETING MINUTES - MAY 4, 2000 PAGE - 5
Tim Leslie is the bill's sponsor. John Ceko, Lake Valley
Fire Protection, attended in support. The committee
recommended changes to the bill and sent it back for
revision.
2) She reported on her attendance at Alpine County's
annual trout fishery meeting.
Director Jones reported he will attend Mealey's MTBE
conference May 11-12.
Chief Financial Officer: Rhonda McFarlane distributed
the executive summary from the Little Hoover Commission
report and explained how it could affect the District, includ-
ing how the District utilizes reserves, and possible changes
to the property tax revenue allocation system.
Roseanne Chamberlain stated the commission's recom-
mendations regarding LAFCOs are excellent. She felt any
impacts to the District would be minimal.
3:10 P.M.
3:30 P.M.
Harold Singer, Lahontan RWQCB, gave an overhead
slide presentation regarding TMDLs (Total Maximum
Daily Loads) and impacts on Indian Creek Reservoir.
Singer reported these requirements are being imposed
due to environmental groups pushing EPA for enforcement.
Lahontan has 71 bodies of water under their jurisdiction
and is under pressure to begin reviewing TMDLs for each.
They chose Indian Creek Reservoir and Heavenly Valley
Creek as their first projects. Phosphorus levels will be as-
sessed, and if they exceed the TMDL target, must be
reduced to an allowable level.
4:25 P.M.
4:37 P.M.
BOARD MEMBER REPORTS
(continued)
STAFF REPORTS
MEETING BREAK
MEETING RESUMED
PRESENTATION: Overview of
TMDL Process and Impacts on
Indian Creek Reservoir
MEETING BREAK
MEETING RESUMED AND
ADJOURNED TO CLOSED SESSION
(Note: Director Wallace left the meeting at 6:00 p.m.)
6:45 P.M.
RECONVENE TO REGULAR
SESSION
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REGULAR BOARD MEETING MINUTES - MAY 4~ 2000 PAGE - 6
ACTION ! REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION
Legal counsel and staff updated the Board regarding
this item.
No Board action.
Pursuant to Government Code
Section 54956.8/Conference re:
Real Property Negotiations:
Agency Negotiators - District Staff
(Robert Baer, Richard Solbrig,
General Counsel), Board of Directors
Under Negotiation - Property Terms
Property ID - APN 19-081-09
PUBLIC HEARING
President Strohm opened the hearing at 7:00 p.m.
Staff: Baer, Solbrig, McFarlane, Sharp, Cocking, Noble,
Henderson, Alsbury, Attorney Kvistad.
Guests: David Kelly, Joyce Blackstone, Ty Baldwin,
Bill Crawford, Lou Pierini, Joseph Flynn, Manette Flynn,
Mike McFarlane.
RECEIVE PUBLIC COMMET
REGARDING 2000/01 FISCAL
YEAR BUDGETS: SEWER
ENTERPRISE FUND AND
WATER ENTERPRISE FUND
Rhonda McFarlane and Richard Solbrig gave an overhead
slide presentation reviewing the 2000/01 Fiscal Year
Budgets for the Sewer and Water Enterprise Funds.
Planned expenditures and revenues were explained.
McFarlane and staff answered questions from the audience
during the course of the presentation.
Public Comments
Manette Flynn commented and/or received clarification on
the following topics:
1) Mobile home rates vs. single family residences;
2) Sewer usage/charges for buildings demolished during
redevelopment;
3) Salary for one laboratory employee needed to implement
the Groundwater Management Plan;
4) Salary and benefit cost breakdown for District employees;
5) Location of the proposed administration building and use
of existing building;
Bill Crawford commented and/or received clarification
regarding the following topics:
1) Funding for the proposed access road to Al Tahoe
Boulevard;
2) Increases in sewer services from 1995 to present;
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REGULAR BOARD MEETING MINUTES - MAY 4, 2000 PAGE - 7
3) Household costs for combined sewer and water rates
by the year 2005;
4) Projects to be funded by the STAR group;
5) Impressed the District is holding down debt service.
Ty Baldwin commented and/or received clarification
regarding the following topic:
1 ) Costs of rehabilitating the existing building
compared to a new building.
A lengthy discussion/question/answer session ensued
regarding the proposed building and access road.
Joyce Blackstone expressed her support in favor of
the building.
David Kelly commented as follows:
1 ) Rate increases are expensive for those on fixed
incomes;
2) Encouraged the Board to consider funding fire protec-
tion for Hwy. 89, instead of the proposed access road;
Director Jones stated he is in favor of adopting the budget
as presented.
Director Gochnauer stated staff is very committed to
holding costs down and is in favor of adopting the budget
as presented.
Director Mosbacher expressed her objections to the pro-
posed administration building.
President Strohm stated budgeting is a balancing act and
is in favor of adopting the budget as presented.
The Public Hearing was closed at 9:15 p.m.
9:15 P.M.
PUBLIC HEARING
(continued)
Board Member Comments
ADJOURNMENT
Kathy Sha~/Clerk of the l~°ard
South Tahoe Public Utility District
Christopher H. Strohm, Board President
South Tahoe Public Utility District
STl11047
DATE: "-~~
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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