07-20-00SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert Baer General Manager Richard Solbri,g., Assistant Manager
Christopher H. Strohm, President BOARD MEMBERS Pembroke Gochnauer, Vice President
James Jones, Director Mary Lou Mosbacher, Director Duane Wallace, Director
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REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
JULY 20, 2000
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session, July 20,
2000, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California.
BOARD OF DIRECTORS:
President Strohm, Directors Wallace, Gochnauer,
Mosbacher. Director Jones was absent.
ROLL CALL
STAFF:
Baer, Solbrig, Sharp, Callian, McFarlane, Noble, Cocking,
Swain, Powers, Hydrick, Schroeder, Hoggatt, Bergsohn,
Bird, Hrbacek, Johnson, Attorney Kvistad.
GUESTS:
Steve Arita/VVestern States Petroleum Association,
Peter Krueger/Nevada Petroleum Marketers Association
(also representing the California Independent Oil Marketers
Association), Christine White, Aura Mattis, and
Denis Brown/Equiva Services LLC; Virginia Huber/EI
Dorado County Environmental Management, John Cefalu/
Fox Service Station, Bob Maloff/Lake Tahoe Inn, Stan
Hansen/American Ski Corporation, Margie Daum, Leslie
Burnside/Harding Lawson Associates, David Kelly, Joyce
Blackstone.
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REGULAR BOARD MEETING MINUTES - JULY 20, 2000 PAGE - 2
Staff requested Consent Item b. (water disconnection
procedures for APN 32-291-30) be removed, as the
situation has been satisfactorily resolved.
Consent Item d. was brought forward for discussion prior
to Board action.
Moved Mosbacher/Second Strohm/Jones Absent/Passed
to approve the Consent Calendar as amended:
a. Authorized implementation of the two-week sewer and/or
water disconnection procedures for delinquent accounts;
b. Item Removed;
c. Fallen Leaf Mainline Manhole Repair - Authorized
increase to Purchase Order No. 8691 in the amount
of $3,813.25;
d. See Consent Items Brought Forward;
e. Natural Gas Purchase Agreement - Authorized renewal
of agreement with term of 12-18 months at market price;
f. Park Avenue Redevelopment Waterline Project -
Approved Change Order No. 2 to City of South Lake
Tahoe for White Rock Construction in the amount of
$2,288;
g. Gardner Mountain Well Project - Authorized expenditure
of remaining funds of $11,200 to complete electrical
design services by Carollo Engineers.
CONSENT CALENDAR
CONSENT ITEMS BROUGHT FORWARD FOR DISCUSSION I BOARD ACTION
Director Gochnauer received clarification regarding this
item.
Moved Gochnauer/Second Mosbacher/Jones Absent/
Passed to authorize purchase of budgeted computers
in an amount not to exceed $67,000 (including tax).
COMPUTER PURCHASES
(Consent Item d.)
ITEMS FOR BOARD ACTION
Richard Solbrig reported two bids for this project were
opened at the July 19, 2000 bid opening. Since the bid
amount significantly exceeded the engineers estimate, a
FLAGPOLE TANK ROOF
REPLACEMENT
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REGULAR BOARD MEETING MINUTES - JULY 20, 2000 PAGE - 3
credit change order will be issued to reduce the scope of
painting in the amount of $88,400, which will bring this
item into line with the budgeted amount. Solbrig stated the
second lowest bidder included the same painting contractor
and had quoted the exact same price for the item of work
to be deleted. Attorney Kvistad stated that he has reviewed
this item and the District is within their legal rights to reduce
the work to be performed.
Moved Gochnauer/Second Wallace/Jones Absent/Mosbacher
Voted No/Passed to award the bid to the lowest responsive,
responsible bidder, Thomas Haen Company, in the amount of
$355,900. (Director M0sbacher voted no due to her concern
that the second Iow bidder should have been notified of the
reduced scope-of-work.)
Attorney Kvistad reported as a result of the public input
received during the Board's public hearing held on
July 6, 2000, it was decided it would be beneficial
to extend the time period prior to its adoption in order to
allow more time for public participation and to fully address
all concerns raised. He reviewed the revised schedule and
the various meetings that will be held prior to the Plan's
anticipated adoption in November.
John Cefalu, Peter Krueger, Christine White, and Steve
Arita thanked the Board and staff for their consideration
in extending the timeline to include full participation by all
interested parties.
No Board action.
FLAGPOLE TANK ROOF
REPLACEMENT
(continued)
GROUNDWATER MANAGEMENT
PLAN
PUBLIC HEARING
The District has developed a Groundwater Management
Plan for the purpose of regulating, managing, con-
serving and protecting the local groundwater resources.
The Public Hearing on July 6, 2000 was continued to
this date.
President Strohm opened the public hearing at 2:55 p.m.
CONTINUED PUBLIC HEARING:
GROUNDWATER MANAGEMENT
PLAN ORDINANCE - CONDUCT
PUBLIC HEARING REGARDING
THE ADOPTION OF THE GROUND-
WATER MANAGEMENT PLAN
PURSUANT TO CALIFORNIA WATER
CODE 10750, ET. SEQ.
Open Public Hearing
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REGULAR BOARD MEETING MINUTES - JULY 20, 2000
PAGE - 4
Attorney Kvistad reiterated that the adoption and
implementation of the Plan will be extended in order to
allow additional time for public participation and to
receive input from the expanded Stakeholders' Advisory
Group.
Written comments received in advance of the hearing
were distributed to Board members and are on file at
the District office.
Staff Report
Public Comments
John Cefalu, Fox Service Station made the following
comments:
* He clarified he is on the mailing list and requested any
and all related information in advance.
*Hopes the District is not creating a third layer of regulation.
*AB 3030 section re: economic impacts should include any
and all impacts. Ordinance states it would have minimal
impacts considering the benefits. Should know true impacts
by doing an economic survey. Next version should include
economic analysis (not just a statement, but a true analysis)
that includes permit fees, remediation costs, etc., so they
can be confident in knowing the true costs.
President Strohm closed the Public Hearing at 3:05 p.m.
Close Public Hearing
No Board action.
3:05 P.M.
3:15 P.M.
MEETING BREAK
MEETING RESUMED
ITEMS FOR BOARD ACTION
Diane Noble reported that in May 2000, the District
severed and abandoned a large portion of the 6-inch
waterline that bisected the Park Avenue Redevelopment
area in the vicinity of Lake Tahoe Inn (LTl). The waterline
was severed to the west of LTi's two 2-inch metered water
services.
REQUEST TO APPEAR BEFORE
THE BOARD: Lake Tahoe Inn,
Bob Maloff
The District's maintenance manager, Ken Schroeder, was
at the location of the waterline abandonment and was
approached by a LTl employee. The employee told
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REGULAR BOARD MEETING MINUTES - JULY 20, 2000 PAGE - 5
Schroeder that LTl had an additional water service line
connection which fed off the 6-inch line where it was
being abandoned and led Schroeder to an old laundry
shed where there was a 2-inch unmetered water service
line down in the floor. This unreported water service line
connection served 178 rooms, a swimming pool, and some
landscaping. The District did not install the line and never
knew it existed. Noble copied the property owner, Bob
Maloff, on the District's administrative code covering
unreported connections and billed him three years back
charges, connection fees, and penalties. The Operations
Committee toured the site, and met with Mr. Maloff and
Stan Hansen, American Ski Corporation. Mr. Maloff intends
to sell the property to American Ski Corporation so the
water credits that are associated with the existing service
hookup can be utilized.
REQUEST TO APPEAR BEFORE
THE BOARD: Lake Tahoe Inn,
Bob Maloff
(continued)
Mr. Maloff summarized the history of LTI's purchase,
development, and water connection plans. In 1970, the
water company, owned by Hoffman, determined where the
waterlines would be located. The District subsequently
bought the water company and installed two meters. Mr.
Maloff had no understanding of what was being metered
and what was not. He only recently became aware that the
old water lateral fed a part of the LTl property and it was
never connected to a meter.
Stan Hansen reported that in the meantime, American Ski
Corporation has expressed interest in purchasing the LTl
property for future development. The option to buy expires
in 2002. While Mr. Maloff understands he must pay for three
years back-charges for water usage, the issue of who pays
for the connection fee is unclear. Mr. Maloff requested that
the Board delay the decision regarding payment of the con-
nection fee until 2002.
After considerable discussion, the following recommendations
were made:
· LTl will pay three years back charges for 2-inch metered
service. The water use calculations will be made using
LTI's average consumption of two existing 2-inch metered
services during the past four quarters.
· LTl will pay water connection fees no later than July 20,
2002.
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REGULAR BOARD MEETING MINUTES - JULY 20, 2000 PAGE - 6
· If American Ski Corporation or other future developer
acquires LTl before the water connection fee is paid, then
such developer will make application for water in the
regular manner, and all water demand "credits" for pre-
vious service provided by the District's Administrative
Code. LTl will disclose this point of agreement to future
developer.
· The District will waive penalties.
· The District's legal counsel will draft an agreement for
approval by LTl and District. LTl will pay the legal and
administrative costs of creating and recording the
agreement.
It was the consensus of the Board to direct staff to
summarize the recommendations and put it on a future
agenda for Board approval. The Board will then direct
legal counsel accordingly.
No Board action.
Moved Gochnauer/Second Wallace/Jones Absent/Passed
to approve payment in the amount of $1,234,193.04.
Hal Bird reported Harding Lawson & Associates have
been contracted by the District to prepare a land
application study. The draft study will be presented
at the end of August. He introduced Leslie Burnside,
from Harding Lawson & Associates, who gave a pre-
sentation using maps to illustrate the options related
to application of recycled water on lands in Alpine County.
Ms. Burnside distributed a handout to the Board that stated
the goal of the study is to develop a tool or quick reference
of recommended application rates to ensure protection of
groundwater resources for domestic wastewater application
on existing and potential reuse areas based on the soil
groupings and USGS topographic base. A question and
answer period followed.
4:15 P.M.
4:30 P.M.
REQUEST TO APPEAR BEFORE
THE BOARD: Lake Tahoe Inn,
Bob Maloff
(continued)
PAYMENT OF CLAIMS
PRESENTATION: Alpine County Land
Application Study (Harding Lawson &
Associates)
MEETING BREAK
MEETING RESUMED AND
ADJOURNED TO CLOSED SESSION
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REGULAR BOARD MEETING MINUTES - JULY 20, 2000 PAGE - 7
ACTION I REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION
Mr. Sher, Miller, Sher & Sawyer, participated in this
closed session via speakerphone. He updated the
Board regarding this item.
No Board action.
Legal counsel and staff updated the Board and received
direction regarding this item.
No Board action.
Legal counsel and staff updated the Board and received
direction regarding this item.
No Board action.
Legal counsel updated the Board regarding this item.
No Board action.
Legal counsel updated the Board regarding this item.
No Board action.
6:00 P.M.
Finance Committee: The committee met July 20 to
discuss the following topics: 1) Third-quarter financial
statements, 2) Annual audit, 3) Self-insurance financial
report, 4) Access road cost-sharing with Measure S
group, and 5) Bank of America settlement.
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel, Existing Litigation:
STPUD vs. ARCO, et. al, San
Francisco Superior Court Case
No, 999128
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel, Existing Litigation:
South Tahoe Redevelopment Agency
vs. STPUD, El Dorado County
Superior Court, Case No. SC20000090
Pursuant to Government Code
Section 54956.9(b)/Conference with
Legal Counsel re: Pending Litigation
( one case)
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel, Existing Litigation:
Schwake vs. STPUD, Federal Case
No. CV-N-93-851-DWH
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel, Existing Litigation:
Mountain Cascade Inc., and Valley
Engineers, Inc. vs. STPUD Board of
Directors and STPUD, County of El
Dorado, Superior Court Case No.
SC20000050
RECONVENED TO REGULAR
SESSION
BOARD MEMBER STANDING
COMMITTEE REPORTS
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REGULAR BOARD MEETING MINUTES - JULY 20, 2000 PAGE - 8
Water and Wastewater Operations Committee: The
committee met July 17. A tour of the Lake Tahoe Inn
was included, as part of the meeting.
BOARD MEMBER STANDING
COMMITTEE REPORTS
(continued)
Richard Solbrig reported on the' status of the export
line project.
Federal Legislative Ad Hoc Committee: Director Wallace
reported on the status of the Lake Tahoe Restoration Act.
BOARD MEMBER AD HOC
COMMITTEE REPORTS
He also reported efforts are underway to deny funding
to EPA for implementation of the TMDL rule.
Director Wallace reported on his recent trip to Russia.
He toured Lake Baikal's sewage treatment plant. It is a
secondary plant that discharges into the lake. He offered
the District's assistance to help refine their process.
BOARD MEMBER REPORTS
District Information Officer: Dennis Cocking reported on
three items:
STAFF REPORTS
1 ) SB 1522 (use of recycled water for fire protection)
passed through an assembly committee with no
problems. The Appropriations Committee will consider
the bill in mid-August. Since there is no cost to the
State, it expected to pass. From there, it will be
considered by the full Assembly.
2) The community seems to have embraced the voluntary
odd/even watering schedule.
3) The MTBE Political Action Committee will meet August 25.
Every water agency in California that has been impacted by
MTBE were invited to attend. The purpose of the group is to
share information and to bring efforts to the forefront with
state and federal agencies.
Richard Solbrig reported on three items:
1) The waterline project for Gardner Mountain Transmission
line started this week.
2) The permanent equipment for Gardner Mountain well
is currently out for bid.
3) His staff attended an arsenic conference. The arsenic
issue is the most expensive water rule ever proposed.
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REGULAR BOARD MEETING MINUTES - JULY 20, 2000 PAGE - 9
6:28 P.M.
ADJOURNMENT
Christopher H. Strohm, Board President
South Tahoe Public Utility District
Kathy Sharp,~.,~erk-of ~h¥ Boa(Cd
South Tahoe Public Utility District
STl10963
DATE:.'-'f'"L~ ! ~ ....~O. 4.,m-Oc3<::3
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.
STl10964
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