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09-06-07 \" SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" Ri~hard Solbr~i' ~~n~r~1 ~.~~~~~r Eric W. Schafer, President .~ ., BOARD MEMBERS Paul Sciuto, Assistant Man.a~e. r '. , .. . '" "',"''',' James R. Jones, Vice President Duane Wallace, Director . ~w . ...... u .w Mary LouMosbacher, Director w . . Kathleen Farrell, Director ",. w . ',' . ........ . ..^,ww~', " REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT SEPTEMBER 6, 2007 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, September 6, 2007, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe, Ca. ~ BOARD OF DIRECTORS: ROLL CALL President Schafer, Directors Wallace, Jones, Mosbacher. Director Farrell was absent. STAFF: Sol brig, Sharp, McFarlane, Hussmann, Coyner, Barnes, Brown, Curtis, Whalen, Henderson, Bergsohn, Eddy, Carrion, Hoggatt, R. Johnson, Ryan, Rasmussen, Thiel, Schrauben, T. Powers, Cocking, Attorney Herrema. GUESTS: Georg Krammer and Alyssa Uchimura/Koff and Associates, Ernie Claudio, John Runnels, Julie Threewit, Colin West, Scott and Marilyn Cook. Moved Mosbacher / Second Wallace / Farrell Absent / CONSENT CALENDAR Passed to approve the Consent Calendar as submitted: \,; a. Bayview Well and South Upper Truckee Well No.3 Controls Building Design - Authorized increase to Purchase Order No. P16097 in the amount of $ 52,040 to complete the project and cover the costs of extra work items required to complete the permitting and engineering plans and specifications for the South Upper Truckee (SUT) Well No.3 controls building and corrosion control treatment facility and performance of a noise mitigation study for the Bayview Well controls building; REGULAR BOARD MEETING MINUTES - SEPTEMBER 6, 2007 PAGE - 2 4. b. Final/Secondary Effluent Pump Station - Approved proposal from Winzler & Kelly Consulting Engineers for services prior to and during the bid period, in the amount not to exceed $118,156; c. Long-Term Disability Policy Renewal for Union Employees and Life Insurance Policy Renewal for all Employees and Board Members - Renewed the Union long-term disability policy and the District's life insurance policy with the new insurer, The Hartford, effective September 1, 2007; d. Resolution Adopting National Incident Management System - Adopted Resolution No. 2837-07 adopting the National Incident Management System; e. Portable Air Compressor-Underground Water Repair - Awarded bid to the lowest responsive, responsible bidder, Kaeser Compressors, Inc., in the amount of $11,902.11, plus tax and shipping; f. Carlson Water Main Extension - Authorized execution of a Water Main Extension Agreement and the upsizing of a water main extension in the amount of $11,971, with final terms subject to approval by staff and legal counsel; 4.., g. Temporary Help: Finance Department - Approved extending the contract with Accounting Temps, for a temporary employee through December 2007, in the amount not to exceed $25,000; h. South Tahoe Public Utility District Employees' Benefit Plan - (1) Increased self-insured medical plan from $1,200 per month per employee, to $1,600 per month per employee, effective July 1, 2007; and (2) Amend the Fiscal Year 2008 budget to reflect this increase; I. Approved Regular Board Meeting Minutes: July 19, 2007; J. Approved Regular Board Meeting Minutes: August 2, 2007; k. Regular Board Meeting Minutes: August 16, 2007. CONSENT CALENDAR (continued) ITEMS FOR BOARD ACTION ~ During Union negotiations, the Union and District agreed that a comprehensive compensation study should be performed, and salary adjustments made COMPENSATION STUDY FOR LOCAL 39 REPRESENTED EMPLOYEES REGULAR BOARD MEETING MINUTES - SEPTEMBER 6, 2007 PAGE - 3 \, based on the study results to keep the District's salaries competitive with the labor market. (A salary survey for Union positions has not been done in the previous 20 years, if ever.) A Compensation Study Committee was formed consisting of Union represent- tatives, shop stewards, and managers. Koff and Associates was selected by the committee to conduct the study. The negotiated agreement between the District and the Union provides that salary adjustments due to the compensation study results would be spread out over the remaining term of the contract (three years). Those positions over market would be Y-rated, and only receive 50% of the Cost of Living Adjustment, until the market catches up to their current salary, or the end of the Contract Term, whichever occurs first. George Krammer, Koff and Associates, summarized the variables used in the process of determining benchmark positions to use as comparables. Moved Jones / Second Wallace / Farrell Absent / Passed to: (1) Accept and receive compensation study from Koff and Associates; and (2) Direct staff to implement study results in accordance with Memorandum of Under- \., standing provisions. On July 6, 2006, the Board authorized a mainline extension agreement with Tahoe Meadows Home- owners Association for installation of 15,000 feet of 6" water main for fire protection purposes, including 12 hydrants. In 2006 the waterline was installed along many streets, but the District has not accepted it because the association is having difficulties obtaining easements for the mainline extension. Many private wells within the association do not meet drinking water standards. In an effort to accommodate the association and allow homeowners to hook up to the District's water supply, a Facilities Use Term Sheet was drafted to define the conditions of use prior to the District accepting the waterline. (This will provide water service to customers through a pipeline that the District does not own, and bill those homeowners for the connections and individual water rates.) The agreement would cover any resident of Tahoe Meadow who wish to connect. \., Moved Jones / Second Mosbacher / Farrell Absent / Passed to: (1) Approve Facilities Use Term Sheet between Tahoe Meadows Homeowners Association and the District; and (2) Authorized Board President to execute the agreement. COMPENSATION STUDY FOR LOCAL 38 REPRESENTED EMPLOYEES (continued) FACILITIES USE TERM SHEET BETWEEN TAHOE MEADOWS HOMEOWNERS ASSOCIATION AND THE DISTRICT REGULAR BOARD MEETING MINUTES - SEPTEMBER 6, 2007 PAGE - 4 ~ Colin West, who lost his home to the Angora Fire, came before the Board to request undersized water lines in the fire area be replaced to improve flows. He encouraged the Board to act now while there are no homes and there is unrestricted access to ease- ments to install upgraded lines. A lengthy discussion ensured re: what it would take to upsize the lines, pressures, costs, grants, FEMA reimbursement, pipe bursting expansion methods, flows to fire hydrants, fire department requirements for sprinklers in new construction, trenching, ease- ments, etc. Paul Sciuto stated staff would look at hydrants to see if there are other reasons for restricted flows. He stated it is likely that even with upgraded lines, pressures still would not be likely to meet fire department requirements. Director Wallace stated that the District is not required to provide the flows now required by the fire depart- ment, however the District understands the need and is doing everything it can. Legislators also understand the need for money, and the need to take immediate action. \., Paul Sciuto gave an update on the work done in the Angora Fire area: trees are being cleared, sewer and water connections have been capped, pavement re- placement in driveways is underway, tank coatings have been inspected. Twenty-five fire hydrants have been replaced. Repair of damage hydrants will begin soon. Approximately $596,000 has been expended to date. The District's insurance company will cover much of the damages. Moved Wallace / Second Mosbacher / Farrell Absent / Passed to determine it is necessary to continue the emergency actions taken under Resolution No. 2834-07. Moved Wallace/ Second Jones / Farrell Absent / Passed to approve payment in the amount of $2,724,097.94. Water and Wastewater Operations Committee: The committee met September 4. Minutes of the meeting are available upon request. Director Wallace reported the next meeting will be held September 12. ~ Director Mosbacher reported that an Alpine County Supervisor expressed his satisfaction with the shared grant coordinator position. CONSIDERATION OF NECESSITY OF EMERGENCY ACTION RE: ANGORA WILDFIRE PAYMENT OF CLAIMS BOARD MEMBER STANDING COMMITTEE REPORTS EL DORADO COUNTY WATER AGENCY PURVEYOR REPRESENTATIVE REPORT BOARD MEMBER REPORTS REGULAR BOARD MEETING MINUTES - SEPTEMBER 6, 2007 PAGE - 5 Director Jones thanked everyone for their concern \., during his recent surgery. BOARD MEMBER REPORTS (continued) Chief Financial Officer: Rhonda McFarlane reported STAFF REPORTS pension plan contributions will end because the District joined CaIPERS. She will follow the process necessary to terminate the plan. District Information Officer: Dennis Cocking reported a letter was sent to Dianne Feinstein requesting appropriations to replace undersized waterlines. AB1260 (the "fix" for the Bighorn Bill) passed through the Assembly. 3:55 - 4:05 P.M. MEETING BREAK AND ADJOURN- MENT TO CLOSED SESSION RECONVENED TO REGULAR SESSION 4:20 P.M. ACTION I REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION No reportable Board action. Pursuant to Government Code Section 54956.9(a)/Conference with Legal Counsel - Existing Litigation re: Meyers Landfill Site: United States of America vs. EI Dorado County and City of South Lake Tahoe and Third Party Defendants, Civil Action No. S-01-1520 LKK GGH, U.S. District Court for the Eastern District of Ca. \., No reportable Board action. Pursuant to Government Code Section 54956. 9(a)/Conference with Legal Counsel - Existing Litigation re: Action Filed by Advanced Companies against Nicholas Construction, Inc., EI Dorado County Superior Court Case No. SC-2007-0042 4:20 P.M. ADJOURNMENT \., ATTEST: ard President c Utility District