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06-05-08 '-' SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" Richard..Solbri~,.. General~ana~~r Mary Lou Mosbacher, President BOARD MEMBERS Pa~I.~~iu~o,Assi stan~~~naier Dale Rise, Vice President James R. Jones, Director Eric W. Schafer, Director Ernie Claudio, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT JUNE 5, 2008 MINUTES t. The Board of Directors of the South Tahoe Public Utility District met in a regular session, June 5, 2008, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe, California. BOARD OF DIRECTORS: President Mosbacher, Directors Rise, Schafer. Directors Jones and Claudio were absent. ROLL CALL ST AFF: Sol brig, Sciuto, Henderson, Whalen, Cocking, Coyner, Adams, Brown, Bergsohn, C. Stanley, Hoggatt, Pinkel, Donovan, Carrion, Curtis, Ryan, R. Johnson, Attorney Herrema. GUEST: Ron Bianchini, President, Delta Excavating, Inc. Shelly Barnes led the pledge to the flag. PLEDGE OF ALLEGIANCE CONSENT CALENDAR Moved Schafer / Second Rise / Jones and Claudio Absent / Passed to approve the Consent Calendar as submitted: \. a. Computerized Maintenance Management System Software Replacement - Authorized staff to negotiate and execute a contract with Maintenance Connection for software purchase and installation, conversion, integration with ArcGIS, Springbook, SCADA and IFAS, and training services, in an amount not to exceed $155,000; REGULAR BOARD MEETING MINUTES - JUNE 5, 2008 PAGE-2 \., b. Indian Creek Reservoir TMDL Mitigation - Authorized staff to advertise for bids to complete the electrical and process control work; CONSENT CALENDAR (continued) c. South Upper Truckee Well No.3 Controls Building/ Corrosion Control Treatment Facility - Authorized increase to Purchase Order No. P16097 - Task Order 24F to Boyle Engineering for added engineering work required to complete the design of the heating, ventilation and air conditioning (HV AC) modifications, in the amount of $8,900; d. Diamond Valley Ranch Master Plan and EIR - Approved Amendment No.2 to Stantec Consulting, Inc., Task Order No.4 to perform additional task, in the amount of $147,112; e. Sewer Enterprise 2008-09 Appropriations Subject to Limitation - Adopted Resolution No. 2847-08 setting the limitation on appropriations for fiscal year 2008-09; f. Approved Regular Board Meeting Minutes: May 1, 2008. ITEMS FOR BOARD ACTION 6., Lisa Coyner addressed the Board. On February 1, 2006, ORDINANCE NO. 509-08: WATER the California Fire Code was adopted by local fire depart- CAPACITY FOR PRIVATE FIRE ment jurisdictions requiring residential sprinkler systems PROTECTION SERVICE due to reduced fire flows. She pointed out that there are two reasons a sprinkler system is required: (1) The fire hydrant within 250-feet of the project does not produce the required flow; or (2) The project area is 5,000 square feet or greater. She explained some areas that now comprise the District's service boundaries, which were previously purchased from private water companies, still have undersized lines and the District is in the ongoing process of replacing and upsizing these lines to meet current fire flow requirements. In the cases where the project is under 5,000 square feet, staff felt customers should not have to pay the water capacity charges due to insufficient flows, and customers who have already paid these charges should receive refunds. Coyner requested this Ordinance be made retroactive to February 1, 2006, and also emphasized this amendment does not apply to projects that are 5,000 square feet or larger. \." Moved Rise / Second Schafer / Jones and Claudio Absent / Passed to enact Ordinance No. 509-08 to amend Administrative Code regarding water capacity charges for private fire protection. REGULAR BOARD MEETING MINUTES - JUNE 5, 2008 PAGE-3 ~ Julie Ryan reported the bid opening took place on May 29, 2008. Only one bid was received from Crosno Construction, Inc., in the amount of $653,000. The engineer's estimate for this project was $630,000. This project includes fabrication and erection of the Country Club Tank and the re-coating of Forest Mountain Tank due to fire damage incurred in the Angora fire. She re- ported there was one minor irregularity in the bid - the contractor's insurance certificate was sent under separate cover. Due to time constraints, and the fact that the lone bid was well within range of the engineer's estimate, she recommended the minor irregularity be waived and the bid be awarded to Crosno Construction, Inc. Moved Rise / Second Schafer / Jones and Claudio Absent / Passed to waive the minor bid irregularity and award bid to Crosno Construction, Inc., in the amount of $653,000. \., (Note: Action Items 6b and 6c were combined for purposes of discussion only. Motions and votes are recorded separately and listed below.) Jim Hoggatt reported nine (9) bids were received on Julie Lane. The apparent low bidder, Delta Excavating, Inc., showed a serious irregularity. The hand written total amount of the bid was written incorrectly, therefore the controlling bid price is unintelligible. On that basis, District counsel and staff recommend rejecting the low bid as non-responsive. He also reported seven (7) bids were received on Tata Lane/Granite Mountain. The apparent low bidder, Delta Excavating Inc., showed two minor irregularities. Staff recommended waiving these minor irregularities and award the bid to Delta Excavating, Inc. Ron Bianchini, President, Delta Excavating addressed the Board. He asked the Board to waive the irregularity on Julie Lane and award the bid to his company. He apologized for the errors which occurred in both bids. He stated the bid runner that was sent was young. He sent a letter this morning via fax to District staff out- lining the errors in both bids, and cited sections of the bid specifications he believed the Board could use to waive the errors. The Board was provided a copy. He requested if the irregularity on the Julie Lane bid is not waived, that he be allowed to withdraw his bid on the Tata Lane/Granite Mountain project. ~ Moved Schafer / Second Rise I Jones and Claudio Absent / Passed to reject the Julie Lane Waterline replacement bid received from Delta Excavating, Inc., as non-responsive; and to award the bid to Doug Veerkamp General Engineering, in the amount of $498,333. COUNTRY CLUB TANK REPLACEMENT JULIE LANE WATERLINE REPLACEMENT TATA LANE/GRANITE MOUNTAIN WATERLINE REPLACEMENT REGULAR BOARD MEETING MINUTES - JUNE 5, 2008 PAGE-4 ~ Moved Rise / Second Schafer 1 Jones and Claudio Absent / Passed to allow Delta Excavating, Inc., to withdraw the Tata Lane/Granite Mountain Waterline replacement bid due to clerical errors and to release the bid bond forthwith; and to waive the minor bid ir- regularities and award the bid to Cruz Excavating, Inc., in the amount of $897,655. Moved Schafer / Second Rise 1 Jones and Claudio Absent / Passed to approve payment in the amount of $2,670,081.44. Director Rise reported he attended the June 4 meeting of the water agency along with Richard Solbrig and Dennis Cocking. The main topic of this meeting was approval of the agency's proposed budget for 2008/09. The budget was adopted and included a cost sharing agreement with EID (EI Dorado Irrigation District) for a study to be perform- ed regarding potential power production for the West Slope of EI Dorado County. The study was estimated to cost approximately $215,000 and was labeled a priority two project. 3:05 to 3: 15 P.M. '-' Director Schafer commented on the timely declaration of the Governor to issue a dissertation on water conservation in California and issuing a edict to be mindful of water conservation. WATERLINE REPLACEMENT (continued) PA YMENT OF CLAIMS EL DORADO COUNTY WATER AGENCY PURVEYOR REPRESENTATIVE REPORT MEETING BREAK BOARD MEMBER REPORTS General Manaqer: Richard Solbrig reported on three GENERAL MANAGER REPORTS items: (1) Washington D.C. representation contract termi- nation notice to Crosspointe Partners, Jeff Fedorchak and his acceptance of the termination; (2) Utility relocation for county erosion control projects and the follow-up meeting on June 4, 2008, with county officials re: funding and re- prioritizing projects to keep them running; (3) TRPA is reviewing a study done approximately five years ago by the Army Corp of Engineers re: wastewater agencies around the lake, and the recommendation of this study to re-Iocate sewer system lines that are in the shore zones. TRPA is recommending adding stream environment zones to the recommendation. \., Interim Chief Financial Officer: Debbie Henderson report on two items: (1) Property tax revenue based on growth rate estimates from the EI Dorado County Assessor's Office for the 2008/09 fiscal year; and (2) Hazard Mitigation Grant Program - Notification of approval on the District's application for the first phase. STAFF REPORTS REGULAR BOARD MEETING MINUTES - JUNE 5, 2008 PAGE-5 6., District Information Officer: Dennis Cocking updated the Board on legislative activities in Sacramento regarding the property tax shift and the status of the State's budget. STAFF REPORTS (continued) 4:00 P.M. ADJOURNMENT TO CLOSED SESSION RECONVENE TO OPEN SESSION 4:10 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(b)/Conference with Legal Counsel - Liability Claim against District received from Smith Deskin Group ~ 4:10 P.M. ADJOURNMENT osbacher, Board President Tahoe Public Utility District ATTEST: Kat y Sharp. 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