2002 05-16SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert G. Baer, General Richard
Duane Wallace, President BOARD MEMBER James R. Jones, Vice President
Cathie Decker Director Ma Lou Mosbacher Director Eric W. Schafer Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
MAY 16, 2002
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session, May 16,
2002, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California.
BOARD OF DIRECTORS: ROLL CALL
President Wallace, Directors Decker, Jones, Schafer,
Mosbacher.
STAFF:
Baer, Solbrig, Sharp, McFarlane, Bird, Hoggatt, Brown,
Coyner, Henderson, Donovan, Attorney Kvistad
GUESTS:
Ed James/Carson Water Subconservancy District,
Jack BurnamlCarollo Engineers, Susan Wood/Tahoe
Daily Tribune, Daniel and Teresa Le blanc/Heidi's
Laundromat, Steve MillerlCarrow's Restaurant,
John Cefalu
Daniel and Teresa Le blanc, owners of Heidi's laundro-,
mat, urged the Board to consider developing a rebate
program for laundromat owners who purchase new Iow-
flow, energy efficient, washing machines. They distributed
a flyer from a utility company in the Bay Area who offers
such a program. It was the consensus of the Board to
direct staff to review the information.
COMMENTS FROM THE AUDIENCE
REGULAR BOARD MEETING MINUTES - MAY 16, 2002 PAGE - 2
Consent Items b. and c. were brought forward for
discussion prior to Board action.
CORRECTIONS TO THE AGENDA
OR CONSENT CALENDAR
Moved Jones / Second Mosbacher / Passed Unanimously CONSENT CALENDAR
to approve the Consent Calendar as amended:
2002 Vehicle Purchases - Authorized purchase of two
vehicles from the State of California's Competitively
Bid Contract in the amount of $48,105.50;
b. See Consent Items Brought Forward;
c. See Consent Items Brought Forward.
CONSENT ITEMS BROUGHT FORWARD FOR DISCUSSION I ACTION
Director Mosbacher requested the letter to Senator Boxer
be amended to point out that there is not a map of the
proposed wilderness areas and no assurance that the
designated areas are set back enough to allow the District
to maintain its facilities.
CALIFORNIA WILD HERITAGE
WILDERNESS ACT OF 2002
(Consent Item b.)
Moved Mosbacher ! Second Wallace / Passed Unanimously
to authorize execution of letter to Senator Barbara Boxer
regarding District's concerns over proposed wilderness
designation, and to include the addition of a paragraph as
described above.
Director Mosbacher requested the proposal be amended
to include the wilderness issue in the list of items to be
monitored by Lynn Suter's firm.
SACRAMENTO LEGISLATIVE
REPRESENTATION
(Consent Item c.)
Moved Mosbacher / Second Schafer / Passed Unanimously
to authorize execution of proposal to Lynn M. Suter and
Associates for continued state legislative representation in
the amount of $23,330, including the addition of the wilder-
ness issue as described above.
Ed James, general manager of the Carson Water Sub-
conservancy District (CWSD), played a video tape about
the Carson River watershed and the role the CWSD
plays in protecting the river's water supply. Mr. James
reported Alpine County is now a member of the CWSD.
PRESENTATION: Ed James, Carson
Water Subconservancy District
The CWSD is looking at water storage as a means to
REGULAR BOARD MEETING MINUTES - .¥~Y 16, 21~2
PAGE - 3
enhance water supply and as a way to move water, and
one option they would like to pursue is using the Indian
Creek Reservoir in the wintertime to store water from
Lost Lake. While there are many hurdles that must be
overcome and many options to explore before this could
actually take place, he wanted to know if the Board had
any strong objections at this time.
PRESENTATION: Ed James, Carson
Water Subconservancy District
(con't.)
Hal Bird stated staff has reviewed this request and felt the
request is premature until the Master Plan is developed.
It was the consensus of the Board that there were no
strong objections at this point, but made it clear that that
may change depending on finalization of the Master Plan.
ITEMS FOR BOARD ACTION
President Wallace read aloud the Resolution of
Appreciation to Jack Bumam for his superior
assistance in Engineering.
RESOLUTION NO. 2741-02:
RESOLUTION OF APPRECIATION
FOR JACK BURNAM
Moved Mosbacher / Second Jones / Passed Unanimously
to adopt Resolution No. 2740-02.
In response to concerns raised by the owner of Carrow's
Restaurant (Can'ow's) regarding impacts the project was
having on his business, Richard Solbrig explained the
project background, project timing, and traffic controls in
place. Steve Miller, representative from Carrow's, listed
specific problems on behalf of the owner.
HIGHWAY 50 WATERLINE
REPLACEMENT PROJECT:
PHASE 1
Jim Hoggatt stated the project must be done within a
certain time frame due to regulatory oversite; it will be
completed by the end of June. All efforts are being made
to ease the congestion and minimize impacts to businesses.
In addition to those efforts, a sign will be put in place to
indicate the driveway is open, a flagman will stop traffic to
allow customers to enter Hwy. 50 businesses, and better
notification will be provided in the future when projects are
planned.
Mr. Miller gave a letter written by the owner of Carrow's to
the Clerk of the Board. He also requested that a copy of the
minutes from this meeting be sent to the owner of Carrow's.
No Board action.
REGULAR BOARD MEETING MINUTES - MAY 167 2002 PAGE - 4
Rhonda McFarlane reported staff recommends this
Ordinance be enacted to ensure that all MTBE settle-
ment and judgment funds are used in a responsible way.
The Ordinance both restricts the MTBE settlement/
judgment money, and segregates the money into a
separate accounting fund. Per the Ordinance, "The
funds received by the District from the action shall be
deposited in the MTBE Contamination Fund and used
solely and exclusively for the costs and expenses
associated with addressing damages from MTBE
contamination of groundwater system and the water
system..." MTBE contamination costs include: capital
costs, operating costs, labor and overhead costs, costs
related to borrowing of funds, and any other related
costs or expense.
ORDINANCE NO. 482-02: MTBE
F[INDS
McFarlane received and clarified questions regarding: the
timing of the restriction, and whether segregating the funds
may be a better choice than restricting them. John Cefalu
questioned the urgency of this Ordinance.
Moved Jones / Second Mosbacher / Directors Becker and
Wallace Voted No / Passed to (1) Accept public testimony;
and (2) Enact Ordinance No. 482-02 to the Administrative
Code Section 3.6, restricting use of funds received from
MTBE settlements and judgements.
The 2002-03 proposed budget is fully funded and on
May 2, 2002, was reviewed in a public hearing. The
proposed budget includes increased revenue of $146,000
from rate adjustments. Overall revenue from rates is in-
creasing 2%. The increase is needed to continue with the
District's capital improvement projects. The rate is lower
than the 3.5% rate adjustment called for in the 2001-02
Financial Plan despite new state and federal mandates
impacting the operating costs.
RESOLUTION NO. 2741-02 -
WATER ENTERPRISE FUND
BUDGET: FISCAL YEAR 2002-03
Public testimony was received as follows:
John Cefalu commented and/or received clarification
regarding the following topics: 1) Salary and benefits;
2) Funding of depreciation; and 3) Capital reserves. He
objected to the rate increase and urged the Board to do the
same.
REGULAR BOARD MEETING MINUTES - MAY 16r 2002 PAGE
Moved Schafer / Second Jones / Wallace Voted No /
Passed to: (1) Accept public testimony; and (2) Adopt
Resolution adopting the budget for the Water Enterprise
Fund.
The 2002-03 proposed budget is fully funded and on May
2, 2002 was reviewed in a public hearing. The proposed
budget includes increased revenue of $177,000 from rate
adjustments. Overall revenue from rates is increasing 2%.
The increase is needed to continue with the District's
capital improvement projects. The rate change is consis-
tent with 2001-02 Financial Plan.
No public testimony was received.
Moved Schafer / Second Jones / Wallace Voted No /
Passed to Adopt Resolution adopting the budget for the
Sewer Enterprise Fund.
The Ordinance increases the Water Service Charges
(Schedules 2 and 3), ranging from 1% to 3% depending
on customer class, and increases water consumption
charges to $1.86 per hundred cubic feet (Schedule 3),
representing an overall 2% water rate adjustment. The
Ordinance also increases the annual sewer rate
(Schedule 6), ranging from 1.3% to 2.9% depending on
customer class, with the adjustment for the single family
home at 2%. The impact of the new Ordinance is to
generate $146,000 and $177,000 in additional revenue
for the 2002-03 proposed water and sewer budgets
respectively. Typical residential customers will see a
2% overall rate increase.
A public hearing concerning the proposed Ordinance
was held May 2, 2002.
Moved Jones / Second Schafer I Wallace Voted No /
Passed to enact Ordinance 483-02 amending Ordinance
No. 464, Administrative Code Sections 3.1.49, 3.1.50,
4.5.12, and superceding Ordinance No. 478-01 in its
entirety.
Moved Wallace / Second Jones / Passed Unanimously
to approve payment in the amount of $730,518.26.
RESOLUTION NO. 2740-02 -
WATER ENTERPRISE FUND
BUDGET: FISCAL YEAR 2002-03
(con't.)
RESOLUTION NO. 2742-02 -
SEWER ENTERPRISE FUND
BUDGET: FISCAL YEAR 2002-03
RATE AMENDMENT: ORDINANCE
NO. 483-02
PAYMENT OF CLAIMS
REGULAR BOARD MEETING MINUTES - MAY 16, 2002 PAGE - 6
Finance Committee: The committee met May 16.
Topics discussed included: GASB 34 compliance,
extension of auditors contract, pension plan audit,
access road, and reimbursements for complying with
the Open Meeting Law act. Minutes of the meeting are
available upon request.
Water and Wastewater Operations Committee: The
committee met April 29. Minutes of the meeting are
available upon request.
President Wallace reported the Agency will hold a
visioning session. Bill Hetland is a candidate for the
general manager position.
Director Mosbacher reported on her attendance at the
Carson Water Subconservancy District meeting on
May 15.
Director Becker reported on her attendance at the
May 7 - 10 ACWA conference.
Director Jones reported on two items:
1 ) He reported on his attendance at the May 7 - 10
ACWA conference.
2) He will travel to Washington D.C. on May 21 to
attend a hearing regarding MTBE in groundwater.
President Wallace reported on two items:
1) He reported on his meeting with Senator Rico Oiler.
2) It is clear that the governor will be looking at property
taxes currently allocated to Special Districts as a source
of revenue for the state.
3) He was a speaker at a CASA meeting held in Squaw
Valley on May 3. He spoke about Lake Tahoe politics and
policy colliding, and the collaborative efforts of the District
throughout the years.
General Manager: Robert Baer reported on two items:
1 ) The Tahoe World newspaper interviewed him regarding
an article they are writing about special district's frustrations
with Lahontan. The article will appear on their web site.
BOARD MEMBER STANDING
COMMITTEE REPORTS
EL DORADO COUNTY WATER
AGENCY PURVEYOR REPRE-
SENTATIVES REPORT
BOARD MEMBER REPORTS
GENERAL MANAGER REPORTS
REGULAR BOARD MEETING MINUTES - MAY 16r 2002 PAGE - 7
2) The District serves as the collection agency for street
lighting services. A group of property owners along Ski
Run Blvd. are interested in installing 40 streetlights as
part of redevelopment. Staff will research this request
and report to the Board at a later date.
Chief Financial Officer: Rhonda McFarlane received
a masters degree in public administration.
General Counsel: Gary Kvistad reported the District
received an easement from VanSickle before the
property was transferred to the CTC.
4:40 P.M.
5:25 P.M.
ACTION I REPORT ON ITEM DISCUSSED DURING
GENERAL MANAGER REPORTS
(con't.)
STAFF REPORTS
ADJOURNED TO CLOSED
SESSION
RECONVENED TO REGULAR
SESSION
CLOSED 8E$81ON
No reportable Board action.
No reportable Board action.
Pursuant to Government Code
Section 54956.8/Conference with
Real Property Negotiators -
Negotiating Parties: Board of
Directors, Robert BaerlGeneral
Manager. Under Negotiation:
Consideration of Property
Purchase; Property Identification:
APN 1-080-80, APN 1-080-81,
APN 1-080-82, APN 1-080-56,
APN 1-080-60, APN 1-200-01,
APN 1-200-10, APN 1-200-11
Pursuant to Govemment Code
Section 54956.(a)/Conference with
Legal Counsel - Existing Litigation:
F. Heise Land & Livestock Com-
pany vs. STPUD and Does 1 - 10
Inclusive; Alpine County Superior
Court Case No. C18644
REGULAR BOARD MEETING MINUTES - MAY 16~ 2002
No reportable Board action.
No reportable Board action.
No reportable Board action.
No reportable Board action.
No reportable Board action.
PAGE - 8
Pursuant to Government Code
Section 54956.(a)/Conference with
Legal Counsel - Existing Litigation:
F. Heise Land & Livestock Com-
pany vs. STPUD and Does 1 - 10
Inclusive; Alpine County Superior
Court Case No. C18733
Pursuant to Government Code
Section 54956(a)/Conference with
Legal Counsel - Existing Litigation:
STPUD vs. F. Heise Land & Live
Stock Company, Inc., William
Weaver, Eddie R. Snyder, Crockett
Enterprises, Inc., CIV. S-02-0238
MLS JFM United States District
Court for the Eastem District of
California, Sacramento, CA
Pursuant to Government Code
Section 54956.9(c)/Conference with
Legal Counsel - Anticipated
LitiQafion (one case)
Pursuant to Government Code
Section 54956.9(a)/Conferance
with Legal Counsel - Existing
Litigation: STPUD vs. ARCO, et. al.,
San Francisco County Superior
Court Case No. 999128
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel - Existing Litigation:
United States of America vs. El
Dorado County and City of South
Lake Tahoe and Third Party Defen-
dants, Civil Action No. S-01-1520
LKK GGH, United States District
Court for the Eastern District of
Califomia
REGULAR BOARD MEETING MINUTES - MAY t$~ 2002
No reportable Board action.
No reportable Board action.
5:25 P.M.
PAGE - 9
Pursuant to Government Code
Section 54957.6(a)/Conference with
Labor Negotiators - Agency
Negotiators: Robert BaerlGeneral
Manager, Management Committee;
Employee Organization: Inter-
national Union of Operating
Engineers, Stationary Local 39
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel - Existing Litigation:
STPUD vs. Lakeside Park Associa-
tion, et al, County of El Dorado,
Superior Court Case No.
SC20010165
ADJOURNMENT
Duane Wallace, Board President
South Tahoe Public Utility District
ATTEST:~~-~, ~~~
Kathy Shar~,/Clerk of the B~oard
South Taho~ Public Utility District
z
OZ oo