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12-20-07 '-' SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" Richard Solbriw, General Mana?er Eric W. Schafer, President BOARD MEMBERS Paul Sciuto, Assistant Man'ier " .. James R. Jones, Vice President Dale Rise, Director Mary Lou Mosbacher, Director Ernie Claudio, Director .- -,- - REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT DECEMBER 20, 2007 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, December 20, 2007, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe, California. ~ BOARD OF DIRECTORS: President Schafer, Directors Mosbacher, Jones, Rise, Claudio ROLL CALL STAFF: Solbrig, Sciuto, Sharp, McFarlane, Whalen, Hoggatt, Ryan, S. Gray, C. Stanley, Bird, Donovan, Rasmussen, Van Gorden, R. Johnson, Lee, Pinkel, Brown, Coyner, Callian, Cocking, Henderson, Carrion, Adams, Frye, Eidam, Long, Hammond, Attorney Herrema GUESTS: Ted Long/City of South Lake Tahoe Councilmember, Jeff Miner, Donna and Casey Rise, John Cefalu, Mark Lily, John Runnels Consent Item b. (Utility Billing) was brought forward for discussion prior to Board action. Moved Mosbacher / Second Jones / Passed Unanimously to approve the Consent Calendar as amended: CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR CONSENT CALENDAR ~ a. Cattle Grazing Permit 2008: Alpine County - Awarded contract to the highest responsive, responsible bidder,_Urrutia Ranch, in the amount of $14,600; REGULAR BOARD MEETING MINUTES - DECEMBER 20, 2007 PAGE - 2 b. See Consent Items Brought Forward; CONSENT CALENDAR (continued) \., c. Application to Present a Late Claim Received from Bryan J. Golden - Granted application; d. New Ford 350 4X4 Trucks for Heavy Maintenance and Equipment Repair - A warded bid to the lowest responsive, responsible bidder, Downtown Ford Sales, for one crew cab in the amount of $23,826.22; and for one regular cab in the amount of $20,795.21; e. Tahoe Regional Planning Agency (TRPA) Mitigation Payment - Authorized payment to TRPA for 5% mitigation fee on new sewer connections, in the amount of $59,368.45; f. Financial Statement Auditor Contract - Authorized execution of a contract with Grant Thornton, LLP, to provide annual financial statement audit services; g. Approved Regular Board Meeting Minutes: November 15, 2007. CONSENT ITEMS BROUGHT FORWARD FOR DISCUSSION/BOARD ACTION 4.., Director Mosbacher received clarification that InfoSend, UTILITY BILLING Inc., did not hold foreign investments, nor do they out- (Consent Item b.) source their work to other countries. She stated approval of this item would represent a significant cost savings. Moved Mosbacher / Second Claudio / Passed Unanimously to approve proposal from InfoSend, Inc., for print and mail services for utility billing, in the approximate amount of $3,000 quarterly, plus postage. ITEMS FOR BOARD ACTION Jeff Miner distributed a letter that summarized his request to go above and beyond regulations and dedicate money for treatment of radon in the water supply. Discussion took place re: the fact that no radon levels have been set by the state. REQUEST TO APPEAR BEFORE THE BOARD: JEFF MINER No Board action. Julie Ryan reported 10 bids were received for this project at the November 14 bid opening. Pacific Mechanical Corporation was the apparent low bidder. Their bid had a minor deviation pertaining an insur- ance issue about a waiver of subrogation to the builders in their insurance certificate. FINAL/SECONDARY EFFLUENT PUMP STATION REPLACEMENT ~ REGULAR BOARD MEETING MINUTES - DECEMBER 20, 2007 PAGE - 3 ~ This project was put out for bid last spring and only one over-priced bid was received. Staff revisited the project and streamlined it in order to attract a more competitive bidding environment. This second round of bidding resulted in a $2 million dollars savings compared to the first round. Moved Jones / Second Rise / Passed Unanimously to award bid to the lowest responsive, responsible bidder, Pacific Mechanical Corporation, in the amount of $6,011,817; and to waive the minor bid deviation described above. The District is in need of completing Nutrient Manage- ment Plans for its recycled water application. (This will ensure the correct volume of water is supplied according to each ranch's individual soil type, slope, etc.) There are eight plans that would be completed if grant funding is available. If grant funding is not available, staff would still like to complete the plan for Diamond Valley. Three proposals from engineering firms were received. f..., Moved Mosbacher / Second Claudio / Passed Unanimously to approve consulting engineering services by Wood Rodgers, Inc., in the amount of $51,520. Hal Bird reported in order to work on the nutrient management plans, cooperation will be needed from the ranchers and landowners to access their property to obtain samples, etc. This agreement is a requirement of the grant process. Moved Mosbacher / Second Jones / Passed Unanimously to authorize execution of the Cooperation Agreement with ranchers/landowners. Moved Schafer / Second Jones / Mosbacher, Rise, and Claudio Vote No / Motion Failed to approve Director Jones as Board President for 2008. Moved Claudio / Second Rise / Jones and Schafer Voted No / Passed to approve Director Mosbacher as Board President for 2008. Richard Sol brig presented Director Schafer with a token of appreciation for serving as Board President for 2007. t... Moved Claudio / Second Mosbacher / Jones Voted No / Passed to approve Director Rise as Vice President for 2008. FINAL/SECONDARY EFFLUENT PUMP STATION REPLACEMENT (continued) NUTRIENT MANAGEMENT PLAN - ALPINE COUNTY COOPERATION AGREEMENT RE: NUTRIENT MANAGEMENT PLAN - ALPINE COUNTY ELECTION OF BOARD OFFICERS: BOARD PRESIDENT ELECTION OF BOARD OFFICERS: VICE PRESIDENT REGULAR BOARD MEETING MINUTES - DECEMBER 20, 2007 PAGE - 4 \.; Moved Claudio / Second Mosbacher / Passed Unanimously to approve payment in the amount of $919,718.25. Finance Committee: The committee met December 20. Grant Thornton completed the audit and did an excellent job. Director Jones, Dennis Cocking, and Richard Solbrig attended a meeting of the agency on December 12. The meeting centered around the water rights disagree- ment they were haYing with Georgetown DiYide to secure 40,000 acre-feet of water to accommodate agricultural needs. Language was proposed that may end the dispute. The coalition for Proposition 50 and round two of the application process were also discussed. Director Claudio relayed his appreciation to staff for helping to bring him up to speed as a new board member. \., Director Schafer reported on an agency that sold water rights to treated effluent for $67M to a private company. General Manaoer: Richard Sol brig reported on two items: 1) A group, spearheaded by Tahoe City PUD, and including the North Tahoe PUD and the Corp of Engineers, was formed to develop projects that could be included in the 219 funding request. The group will also pursue other avenues, including Section 509, for grant funding for a possible joint project. 2) Since the District's application for second round of funding under Prop. 50 was not correctly rated, staff will review what went wrong and determine if an appeal process will be necessary. 3) He received a letter from AI Moss regarding the District's crew in Alpine County. Their community involvement, which includes volunteer service on the fire department, is much appreciated. PAYMENT OF CLAIMS BOARD MEMBER STANDING COMMITTEE REPORTS EL DORADO COUNTY WATER AGENCY PURVEYOR REPRESENTATIVE REPORT BOARD MEMBER REPORTS GENERAL MANAGER REPORTS District Information Officer: Dennis Cocking reported STAFF REPORTS the District obtained a $1 M earmark for funding through the Lake Tahoe Restoration Act. If approved, this funding would be used for water system infrastructure improvements, including the upgrade of undersized waterlines. '-' ~ '" '-' REGULAR BOARD MEETING MINUTES - DECEMBER 20, 2007 PAGE - 5 Cocking also reported the State of California is in the midst of another budget crisis. He expressed concern the state may attempt to take property taxes again. Chief Information Officer: Rhonda McFarlane reported the District's participation in the new City redevelopment proposal will be very important since the District's finances and resources could be at stake. Clerk of the Board: Kathy Sharp reminded the Board to contact President Mosbacher with their input regarding 2008 committee assignments. Results will be announced at the January 3 Board meeting. STAFF REPORTS (continued) ACTION / REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION No reportable Board action. 3:30 P.M. 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. ADJOURNMENT A TTESTt:-::: Kathy Sh South Ta V r President tility District