Ordinance No. 482-021
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ORDINANCE NO. 482-02
AN ORDINANCE OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT
TO ADD SECTION 3.6 TO DIVISION 3 OF THE
ADMINISTRATIVE CODE RESTRICTING THE USE OF FUNDS
RECEIVED FROM MTBE SETTLEMENTS AND JUDGEMENTS
BE IT ENACTED by the Board of Directors of the South Tahoe Public Utility
District (District), County of El Dorado, State of California, as follows:
SECTION I - POLICY AND PURPOSE
The purpose of this Ordinance is to restrict the use of funds received by the District
methyl tertiary butyl ether (MTBE) contamination settlements and judgements for use in
addressing damages caused by MTBE contamination to groundwater resources and the
Water System.
SECTION II - FINDINGS
The Board of Directors of the South Tahoe pUblic Utility District, County of El
Dorado, State of California, make the following findings:
1. Groundwater resources are the sole water supply source for the District to
obtain Potable Water for use by its customers;
2. Groundwater resources, from which the District's wells extract Potable
Water, have been and continue to be subject to contamination from MTBE,
notwithstanding efforts to prevent such contamination, and present a
material risk of harm to the District's groundwater resources and its ability
to provide safe and reliable drinking water to its customers;
3. The District initiated an action entitled South Tahoe Public Utility District v.
ARCO Chemical Company, et al., San Francisco County Superior Court
Case No. 999128 (Action) to recover damages related to MTBE contamin-
ation of groundwater resources and the Water System;
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Ordinance No. 482-02
Page 2
4. The cost and expense of addressing MTBE contamination of groundwater
resources and the Water System are uncertain since MTBE contamination
of the groundwater basin water is wide-spread;
5. In Order to ensure that funds received by the District as a result of the
Action, whether from settlement, judgement(s) or otherwise, are used
responsibly and solely for addressing the damages from MTBE
contamination, the Board of Directors desires to segregate the funds
received by it as a result of the Action to pay for cost and expenses
associated with damages from MTBE contamination of groundwater
resources and the Water System;
6. The District must enact an ordinance in order to segregate and restrict these
funds pursuant to Generally Accepted Accounting Principles; and,
7. The Board of Directors determines that it is in the best interest of the District
to enact this Ordinance to ensure that funds received as a result of the
Action are available to address damages from MTBE contamination of
groundwater resources and the Water System, now and in the future.
SECTION III - SECTION 3,6 ADDED TO SECTION 3
OF THE ADMINISTRATIVE CODE
This Ordinance shall add Section 3.6 Methyl Tertiary Butyl Ether (MTBE)
Contamination Fund (subsections 3.6.1 through 3.6.6, inclusive) to Section 3 of the
District's Administrative Code, the terms of which are set forth in the attached Exhibit A and
incorporated by this reference.
IV - SEVERABILITY
If any section, subsection, subdivision, paragraph, sentence, clause or phase of this
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Ordinance No. 482-02
Page 3
Ordinance and its implementing rules and regulations is for any reason held to be
unconstitutional or invalid, such decision shall not affect the validity of the remaining
portions of this Ordinance or the Administrative Code. The Board of Directors declares
and determines that it would have passed section, subsection, subdivision, paragraph,
sentence, clause or phrase thereof of this Ordinance and its implementing rules and
regulations and the Administrative Code irrespective of the fact that any one or more
sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases may be
determined~o be unconstitutional or invalid.
SECTION IV - EFFECTIVE DATE
This Ordinance shall be effective thirty (30) days after its passage.
PASSED AND ENACTED by the Board of Directors, South Tahoe Public Utility
District'at its Regular Meeting on the 16t" day of May, 2002, by the following vote:
AYES: Directors Jones, Schafer, Mosbacher
NOES: Directors Wallace, Becket
ABSENT: ~one
Duane Wallace, President of the Board
South Tahoe Public Utility District
ATTEST:
Kathy Shar ,~lerk of the Board and
Ex-officio Secretary of the Board of Directors
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EXHIBIT A
3.6 Methyl Tertiary Butyl Ether (MTBE) Contamination Fund.
3.6.1 Policy and Purpose. The purpose of this section is to restrict the use of
funds received by the District from MTBE contamination settlements and judgement(s) for
use in addressing damages caused by MTBE contamination of groundwater resources and
the Water System. It is essential that the District manage these financial resources to
ensure that these funds are available to address damages caused by MTBE
contamination, now and in the future.
3.6.2 Separate Accounting Fund. The funds collected by the District as a result of
action titled South Tahoe Public Utility District v. ARCO Chemical Company, et al., San
Francisco County Superior Court Case No. 999128 (Action), whether from settlements,
judgements or otherwise, shall be restricted by the District for the uses described in section
3.6.3, below. The Chief Financial Officer of the District shall establish a separate
accounting fund within the Water Enterprise Fund for funds received from the Action. This
separate accounting fund shall be titled the MTBE Contamination Fund.
3.6.3 Use of MTBE Funds. 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 resources and the Water System. These costs and expenses include, but
shall not be limited to, the following:
a. Capital costs for land, improvements to land, easements, buildings,
building improvements, wells, replacement water supplies, water lines, vehicles, machines,
equipment, and all other tangible or intangible assets that are used in operations;
b. Operating costs such as public and private utility costs, chemicals and
other supplies, consulting costs, lobbying, legal expenses and fees, and laboratory costs
and supplies;
c. District staff labor and related overhead costs;
SB 296394 v1:007627.0077
d. All costs related to borrowing of funds such as interest expense, loan
fees and similar customary costs; and,
e. Other related costs and expenses as determined by the District.
3.6.4 Annual Report. The District shall prepare an annual report on the status of
the MTBE Contamination Fund. The report shall include, in addition to those matters
required by Generally Accepted Accounting Principles, a detailed description of the funds
actually used or committed to be used over the past year, estimated budget for anticipated
uses of the funds for the period consistent with the District's Five-Year Forecast, and any
other related information the District determines reasonable or necessary. The report shall
be presented to the District's Board of Directors during a noticed regular public meeting of
the District's Board of Directors as part of the normal annual budget process.
3.6.5 Rules and Regulations. The District shall have the authority to promulgate
rules, regulations and procedures to implement and carry out the intent and purpose of this
section, provided such rules, regulations and procedures are consistent with this section.
3.6.6 Amendment/Modification/Termination. This Section 3.6 may be amended,
modified or terminated by the District at any time after its adoption by no less than an
affirmative vote of four of the District's five Board of Directors. Amendments, modifications
or termination shall be considered and approved, or disapproved, only at a noticed regular
public hearing by the District's Board of Directors.
SB 296394 vl: 007627.0077
3079 Harrison Avenue, South Lake Tahoe, CA 96150
(775) 881-1201
Account Number: #01100972
South Tahoe Public Utility
1275 Meadow Crest Drive
South Lake Tahoe, CA 96150
AC.,ooUNTS pAYA
$ ~T.P.U
TERRY DIXON says:
That (s)he is a legal clerk of the 'rAHOE DAILY TRIBUNE, a
daily newspaper published at South Lake Tahoe, in the
State of California.
Ordinance of South Tahoe Public Utility Dist.
Ordinance No. 482-02
Ad#03508426
of which a copy is hereto attached, was published in said
newspaper for the full required period of I time commenc-
ing on May 27, 2002 and ending on May 27, 2002, both
days inclusive.
Signed:
STATEMENT:
Date
5/27/O2
Amount
$263.14
Credit
Balance
$263.14
Statement of Publication.
A. ORDINANCE OF TME SOUTH TA"O UB
UTILITY DISTRICT
TO ADD SECTION 3.6 TO DIVISION 3 OF THE
~,DMINISTRATIVE COOE RESTRICTING THE U~E OF
FUNDS RECEIVED FROM MTBE
SETTLEMENTS AND ~
IE IT ENACTED by the Board of Directors of the South
TahOe Public Utility . :"
District (DiStrict), (3ounty of El Dorackl, State of Califor.
nla, as fOllows: _.. ,~.~2~~''~ I
8BCTIuN m -},{~2Jm~ I
AND PURPOSE
The purp°se of this Ordinance is to restriCt the use ofl
funds recsived by the District methyl tertiary butTI eth~erl
MTBE) contamination settlements and judgements fo.rI
:~se in addressing damages caused by IVlTBE _contam~-~
~ation to groundwater resources and t~he Water System.
SEC~N II - FINDIN61$
The Board of Directors.of the South Tahoe Public UtilityI
Diatrict,:County of El I
Dorado, State o~' California, make the following findings:
1. Groundwater resources are the sole water supplyl
.source for the Diat~tct to obtain Potable Water for usebyI
~ustomars,
w$115 extract Potable Watsr, have be~n and continue to
~e subject to contamination from MTBE, n. otwithstanding
~fforts to prevent such contamination, an~ praseflt a ma-
terial risk of harm to the District's groundwater raseurcas
and {ts ability to. provide safe and rel{abia drinking Wat®r
~o its customersi
:3. The District mnitiated an actien entitled South Tahoe
Public Utility DiStrict v. ARGO Chemical Company, ~t al.,
San FranciSCO County Superior Court Case No. 999128
(Action) to reCOver damages related to ..M~'. BE _contamin-
at on of groundwater resources and the water System;.
4. The cost and ~xp®nse of addressing MTBE COntami-
nation of groundwater resources and the water System.
are Uncertain since MTBE contamination of the grouno-
water basin water is wide-sPread;
5. In Ord.er to ensure that funds received by the Districl
as a result of the Action whether from settlement, judge.
rnent($) or othem~iae, are used responsibly and eolely roi
'~ddrassing~the damages from MTBE contamination, th{
Board of Directors desires to 'segregate the funds re-
oeived by R as a result of the Action to pay for cost and
expenses associated With damages from .M..T.BF~contam-
lnatior{ of groundwater resources and the water-~ystem;
6. Th~ District must enact ar~ ordinance {n Order to seg.
regate and rastdct these funds pursuant to Generally Ac-
cepted AcCOunting Princip{es; and,
72 The Board of Dir$ctor~ dst®rmines that it is in the best
{ntsrast of the District
to enact this Ordinance to ensure that funds rece{ved as
a result of the Action are available to address damages
from MTBE COntamination of groundwater resources and
the Water System, now andin the future. ·
SmmCTiON I1{ - SEc'rmoN 8,8 4DD{D TO N{CTION 8
OF THE
ADMINISTRATIVE CODE
This Ordinance alkali add SeCtion 3.6 Methyl Tertiary Bu-
tyl Ether (MTBE) Contam{na_tion Fund (subsections. 3..6..1
through 3.6.6 inclusive) to ~ection 3 of the District's
ministrative Code, the terms of Wh ch ara'set forth in the
attaehed Exhibit A m~t~rated by ~b. is reference.
IV - SEV E"R-A~ILI~r'¥:
If any section, aub. sectiOn,.?bd_M?.ion, parag.ra, ph., s~n,
l~, clatise Or pnase of this ucdinance aha ~s imp e-
tenting jules and. reg.ulat~.ns la for ar~.y, reason held
· unc~natitutldnal or Invafio, such declsior) shall not al-
)ct the Validity Of the remaining portions of this Ordi-
ance or the Administrative Code. The BOard of Direc-
tors declares and determines that it would liave passed
section, subsection, subdivision paregraph~ sentence,
Clause or phrase thereof of this Ordinanoe and its implei
meriting rules and regulations and the Administrative
Code irrespective of the fact that any one, or more sec.
tions, subsections, subdivisions, paragraphs, sentences,
clauses or phrases may be determined to be unconstitu-
tiOnal or inValid.
SECTION IV - EFFECTIVE DATE
This Ordinance shall be effective thirty'(30) days after, itt
g.ssage.
$$ED AND ENACTED by the Board of Directors,
South Tahoe Public Utility District at its Regular Meeting
on the 'i6 th day of May,. 2002, by the following vote:
AYES: Directors Jones, Schafer, Mosbacher
-NOES: Directors, Wallace, Becker
ABSENT: None
rs/[;)usna Wallace.
President of the Board
South Tahoe Public Utility District
ATTEST:
!~/KartS/Sharp;' '
Clerk of the Boe~ and / .
Ex-offk~o 8eoretary of the Board of D~rectors
EXHIBIT A
Ikm FuIM. -
AFFIDAVIT OF POSTING
State of California )
)ss
County of El Dorado )
,t~~j,0, ~\~ r'~., being first duly sworn, deposes and says:
That for and on behalf of the Clerk of Board of the SOUTH TAHOE
PUBLIC UTILITY DISTRICT, affiant posted copies of (~'~ ('~)-~cc~O~ln form
attached hereto and by reference made a part hereof, in four (4) publically accessible
locations in the District as follows:
South Tahoe Public Utility District
1275 Meadow Crest Drive
South Lake Tahoe, CA
Al Tahoe Post Office Station
1046 Al Tahoe Boulevard
South Lake Tahoe, CA
o
City of South Lake Tahoe
Services Center
1900 Lake Tahoe Boulevard
South Lake Tahoe, CA
2o
Black Bart Post Office Substation
Black Bart Avenue at Pioneer Trail
South Lake Tahoe, CA
That said posting was completed on the ~
day of
Subscribed and sworn
to me this
day of
2O
Clerk of the Board
SOUTH TAHOE PUBLIC UTILITY DISTRICT