05-01-08
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SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Richard Sol brig, General ~anaier
Mary Lou Mosbacher, President
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BOARD MEMBERS
Pau.ISciuto, Assistant Man~~er
Dale Rise, Vice President
James R. Jones, Director
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Eric W. Schafer, Director
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Ernie Claudio, Director
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REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
MAY 1,2008
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
May 1, 2008, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe,
California.
\., BOARD OF DIRECTORS:
President Mosbacher, Directors Rise, Claudio, Jones. ATTENDEES
Director Schafer was absent.
STAFF:
Sol brig, Sharp, McFarlane, Sciuto, Coyner, Eidam,
Barnes, Ryan, C. Stanley, Carrion, Cocking, Gray,
Curtis, Attorney Herrema.
GUESTS:
Cathy Kope/City of South Lake Tahoe Loan Program
Specialist, Michael Boettger & Bucky Fong/PAM
Companies (Evergreen Apartments), Dale Smith/
Smith Design Group, Janet Murphy/Tahoe Douglas
Utility District, Ed Senior/Senior Plumbing, Jake
Jacobs/Jacobs Ent., Marvin Neubauer, Wada Vogt,
Joe Garcia, Chris Lucas, John Adamski.
Paul Sciuto led the pledge to the flag. PLEDGE OF ALLlGIANCE
An additional agenda item was received subsequent to ADDENDUM TO THE AGENDA
the regular Board meeting agenda being posted. The
TRPA permit for the Country Club Tank and Waterline
Replacement Sitework project was received sooner than
\., expected. Due to the short duration of the construction
REGULAR BOARD MEETING MINUTES - MAY 1, 2008
PAGE - 2
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season, the start date for this project can now be
moved up. The timely completion of this sitework
contract directly impacts the start date for the tank
construction portion of the work. Additionally, steel
prices have gone up and its availability has gone
down in the past month or so.
Moved Rise / Second Claudio / Schafer Absent / Passed
to add the Country Club Tank and Waterline Replace-
ment Sitework bid award to the agenda as Action Item e.
ADDENDUM TO THE AGENDA
(continued)
Moved Claudio / Second Rise / Schafer Absent / Passed CONSENT CALENDAR
to approve the Consent Calendar as submitted:
a. Cui De Sac Holdings, LLC, Water Main Extension -
Authorized execution of a Water Main Extension
Agreement and the upsizing of a water main exten-
sion in the amount of $4,680, with final terms
subject to approval by staff and legal counsel;
b. Cui De Sac Holdings, LLC, Sewer Main Extension -
Authorized execution of a sewer main extension
agreement, with final terms subject to approval by
staff and legal counsel;
\., c.
South Upper Truckee Well No.3 Controls Building/
Corrosion Control Treatment Facility - Approved
Change Order No.5 to Thomas Haen Company, Inc.,
providing a no-cost time extension of fifty-six (56)
days for facility completion;
d. Sierra Tract Erosion Control: Phase 1 a - Approved
payment to the City of South Lake Tahoe for water-
line relocation in the amount of $35,800.
ITEMS FOR BOARD ACTION
On April 17, representatives from Evergreen Tahoe
Partners appeared before the Board to request waiver
or re-evaluation of the additional water capacity fee
($24,825) assessed after their completion of the
District's two-year monitoring program at their low-
income housing project. This item was tabled to
allow Legal Counsel time to research the legalities
related to this issue.
Lisa Coyner reported Legal Counsel determined the
capacity charges cannot be waived. The high water
consumption was a result of landscape irrigation during
.. the summer months. Staff proposed that the District's
..., Water Conservation Specialist work with the owners to
suggest methods to lower water use, including use of
REQUEST TO APPEAR BEFORE
THE BOARD RECEIVED FROM
EVERGREEN TAHOE PARTNERS
REGULAR BOARD MEETING MINUTES - MAY 1, 2008
PAGE - 3
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the turf buy-back program and implementing other
water conservation measures, and to extend the
monitoring period for two more years. At the end of
two years, the consumption would be re-evaluated.
Moved Claudio / Second Rise / Schafer Absent / Passed
to extend the monitoring period for the capacity charge
by two years, and directed staff to work with project
representatives to minimize water use.
The necessary treatment of waters introduced into
the District's collection facilities by inflow and
infiltration creates a burden on the District including
increased cost of operations, which result in increased
costs to those served by the District. To mitigate
these costs, additional efforts to minimize or eliminate
inflow and infiltration are necessary and appropriate
including this ordinance modifying maintenance,
testing, and repair procedures for sewer laterals. These
changes to the Administrative Code would result in
the District's assumption of additional responsibility
for the repair of sewer laterals. This includes both
financial and legal responsibility for such repairs, and
may result in the District incurring additional costs.
I. Lisa Coyner reported air testing issues have been
.., before the Board several times. She noted the
changes brought about by this ordinance would not
affect ownership of the laterals - the property
owner is still responsible from the house to the main.
It will, however, change the definitions of the lower
and upper laterals, and will make the District responsible
for blockages and damages to the lower lateral for new
construction and remodels. Doing this will assist District
customers by taking care of the lower lateral portion
where it is buried the deepest and where it is in the
public right-of-way.
Members of the public, Jake Jacobs, Chris Lucas, John
Adamski, and Scott Swift addressed the Board regarding
the ordinance. They stated the District should assume full
ownership of the lateral beyond the property line to the
main since they consider it to be a part of the sewer
system.
Director Jones stated he would like to wait until CASA
(California Association of Sanitation Agencies) pub-
lishes information regarding what the industry standard
is in relation to sewer laterals. He was reminded of the
.. study done by Kennedy/Jenks that determined the
..,. District's practice will be in-line with industry standards.
It was the consensus of most of the Board that this
ordinance offers an improvement over what was in
REQUEST TO APPEAR BEFORE
THE BOARD RECEIVED FROM
EVERGREEN TAHOE PARTNERS
(continued)
ORDINANCE NO. 507-08:
SEWER LATERAL TESTING AND
REPAIR
REGULAR BOARD MEETING MINUTES - MAY 1, 2008
PAGE - 4
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place before, and if CASA comes up with new
information, can be reconsidered when it becomes
available to the industry.
Moved Rise / Second Claudio / Jones Voted No /
Schafer Absent / Passed to enact Ordinance No. 507-08
amending Administrative Code regarding sewer lateral
testing and repair.
The District received a request for extra compensation,
in the amount of $53,233.74, from the Smith Design
Group resulting from construction and post-construction
services. The District's position is that the extra costs
were largely due to poor design services that resulted
in cost overruns during construction. The District made
an offer of settlement under which it was willing to
waive the right to cost recovery for the overruns depen-
dant on Smith Design Group's willingness to provide the
electronic contract documents as agreed to in the Master
Services Agreement, and waiving the claim. The settle-
ment offer was rejected by Mr. Smith and he has filed
a "Claim Against Public Entity."
Dale Smith reported to the Board the overruns were
a result of providing additional services and modifica-
I." tions requested by the District that were not covered
.., in the Task Order. He received copies of related change
orders and disagrees with how they were computed.
He acknowledged his poor design resulted in 2.1 % of
the construction bid amount in change orders.
3:30 - 3:40 P.M.
(Pursuant to Section 54956.9{b) of the California
Government Code, the Board adjourned to closed
session at 3:40 p.m. to discuss the merits of the claim
with legal counsel, and reconvened to open session
at 4: 1 0 p.m.)
Moved Rise / Second Claudio / Schafer Absent / Passed
to reject the claim.
Mr. Smith was encouraged to meet with staff to present
information to justify his claim.
ORDINANCE NO. 507-08:
SEWER LATERAL TESTING AND
REPAIR
(continued)
CLAIM AGAINST STPUD
RECEIVED FROM SMITH DESIGN
GROUP
MEETING BREAK AND ADJOURN-
MENT TO CLOSED SESSION
Moved Claudio / Second Rise / Schafer Absent / Passed PAYMENT OF CLAIMS
to approve payment in the amount of $1,648,655.50.
(Note: This item was added to the agenda after approval
by the Board at the beginning of the Board meeting.)
\.,. Eight bids were received at the April 29 bid opening.
A careful review and analysis showed one very minor
deviation on the part of the apparent low bidder,
COUNTRY CLUB TANK AND
WATERLINE REPLACEMENT
SITEWORK
REGULAR BOARD MEETING MINUTES - MAY 1, 2008
PAGE - 5
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Hangtown General Engineering - they made a mistake
in their addition that was less than one dollar.
COUNTRY CLUB TANK AND
WATERLINE REPLACEMENT
SITEWORK
(continued)
Moved Claudio / Second Jones / Schafer Absent /
Passed to award project to the lowest responsive,
responsible bidder, Hangtown General Engineering, in
the amount of $195,759.43, and to waive the minor
bid deviation.
Water and Wastewater Operations Committee: The BOARD MEMBER STANDING
committee met April 28. Staff will be kept very busy COMMITTEE REPORTS
this summer, with at least six major projects going
on simultaneously. Minutes of the meeting are available
upon request.
Director Claudio reported on three items: BOARD MEMBER REPORTS
1) He attended a CASA (California Association of
Sanitation Agencies) conference and distributed
handouts from the meeting.
2) Local law enforcement is asking the community
for help with gang activity. The District can help by
reporting graffiti.
3) A public member suggested board meetings be
televised. After some discussion regarding the City's
web link system, it was the consensus of the Board
4., to direct staff to look into various options and costs.
General Manaqer: Richard Sol brig reported on three GENERAL MANAGER REPORTS
items:
1) He reported that property line locations for the residen-
tial backflow devices is not practical in Tahoe due the
freezing weather. The District will require a second backflow
device for hydronic heating systems. The device on the
domestic service line will be required to be within two feet
of where it enters the house. This is in addition to the
backflow device that is required by the building department
at the boiler.
(5:00 p.m. - Director Claudio left the meeting at this point.)
2) A meeting will be held with the CTC (California Tahoe
Conservancy) on May 12 to discuss grant programs. All
of the projects in the EIP (Environmental Improvement
Projects) pertain to erosion control. Water and sewer
projects should be included in order to comply with the
IRWMP (Integrated Regional Water Management Plan).
3) A meeting has been scheduled with David Jinkens,
City Manager, to discuss numerous items, including water
\., conservation, redevelopment issues, etc.
REGULAR BOARD MEETING MINUTES - MAY 1,2008
PAGE - 6
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Chief Financial Officer: Rhonda McFarlane reported on
two items:
1) She summarized the pension plan liquidation process
and timeline.
2) Per the existing Administration Code, starting this year,
new customers are no longer being charged a flat fee for
their physical connection costs. Customers are now being
charged the actual labor and materials. Customer Service
is collecting $2,000 as a pre-payment for the physical
connection costs from all new water services in the City.
No pre-payment is being collected from new water services
in the County. This is being done this way because most
County parcels have a water lateral in place. In the City
they are usually missing. The difference between actual
costs and the pre-payment (if any) is either invoiced or
refunded depending on the actual costs. The original
Ordinance called for a flat fee to phase in the charge with
2008 going to full cost.
District Information Officer: Dennis Cocking reported on
two items:
1) Efforts are underway to prevent another property
tax take-away by the state.
2) The District's Washington D.C. representatives
\., suggested the District put together a tour of the
Angora Fire area so legislators can learn what has
been accomplished with grant funds.
Assistant General Manger / Engineer: Paul Sciuto
reported on the presentation he made to various
agencies around the lake regarding the District's
response to the Angora Fire.
He also reported the emergency retention basin
liner was damaged in a windstorm. Quotes for repair
have been received and will take two to three days to
complete.
STAFF REPORTS
ACTION I REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION
No reportable Board action.
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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.
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REGULAR BOARD MEETING MINUTES - MAY 1, 2008
PAGE - 7
(Action taken in Open Session, see Pg. 4)
5:54 P.M.
ATTEST: ~ j ~L~ /l~
athy Sh , Clerk of the oard
South Tahoe Public Utility District
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Pursuant to Government Code
Section 54956.9{b)/Conference with
Legal Counsel- Liability Claim against
District received from Smith Design
Group
ADJOURNMENT
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