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03-05-09 -----..0..0,. H // c:. / ( I \., SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" Richard Solbrii' Gen_e~al Mana~er ._ Mary Lou Mosbacher, President . -- .. BOARD MEMBERS ".. Pa.ul ~ciuto, Assi~tant Manaier . 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 MARCH 5, 2009 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, March 5, 2009, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South lake Tahoe, California. ~ BOARD OF DIRECTORS: President Mosbacher, Directors Rise, Claudio, Jones, Schafer. ATTENDEES STAFF: Solbrig, Sharp, Sciuto, Hughes, Cocking, Brown, Hoggatt, Cullen, Coyner, Curtis, Hussmann, Attorney Kvistad. James Cullen led the pledge to the flag. PLEDGE OF AllEGIANCE CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR CONSENT CALENDAR Two minor changes were made to the Ordinances on Consent Items b. and c. Moved /Rise / Second Claudio / Passed Unanimouslv to approve the Consent Calendar as amended: a. 2009 Water Meter Parts - (1) Waived bidding procedures, as outlined in the Purchasing Policy, for standardized equipment to be purchased from the sole area supplier; and (2) Authorized purchase of water meters and parts from Western Nevada Supply, in the amount of $42,548.86, plus tax; \. REGULAR BOARD MEETING MINUTES - MARCH 5, 2009 PAGE-2 ~ b. Ordinance No. 513-09: Water Meter Responsibility - Enacted Ordinance No. 513-09, superseding Ordinance No. 504-08 and amending Section 3.2.5 of Division 3 of the Administrative Code regarding District water meter responsibility, (including inclusion of the word "install" in section 3.2.5); CONSENT CALENDAR (continued) c. Ordinance No. 514-09: Right of Entry by District - Enacted Ordinance No. 514-09, amending Section 3.2.6 of Division 3 of the Administrative Code regarding right of entry by District, (including corrected section number, and inclusion of the word "replacement" in Section 3.2.6); d. Final/Secondary Effluent Pump Station - Approved proposal from Winzler & Kelly for additional construction related professional services, in the amount not to exceed $75,000; e. Approved Regular Board Meeting Minutes: February 5, 2009; f. Approved Regular Board Meeting Minutes: February 1 9, 2009. ITEMS FOR BOARD ACTION \., Ordinance No. 482-02 restricts the use of the MTBE funds for the costs and expenses associated with addressing damages from MTBE contamination. The ordinance states that it may be amended, modified or term inated by a 4/5 vote of the Board. ORDINANCE NO. 515-09: MTBE ORDINANCE AMENDMENT There was discussion and desire expressed by the Finance Committee, and at a Board workshop, to allow a one time lending of the MTBE reserve funds to the water fund during Fiscal Year 2009/10, up to a maximum of $1,100,000, to complete certain waterline projects identified by the District. Subsequent to the posting of the regular meeting agenda, staff learned the District received a federal grant that allows up to $2-1 /2M to be used for water- line projects. Staff recommended going forward with the borrowing, and only use the money if award of the federal grant is delayed. Moved Jones / Second Schafer / Passed Unanimouslv to enact Ordinance No. 515-09, amending Section 3.6.3 of Division 3 of the Administrative Code regarding limitations on the use of funds received from MTBE settlements. \. REGULAR BOARD MEETING MINUTES - MARCH 5, 2009 PAGE-3 ~ This resolution lays out the terms for lending MTBE funds to the water fund. The loan will be repaid during Fiscal Year 2010/11 or earlier. Interest will accrue on the borrowed balance at a rate equal to the interest rate earned on the remaining MTBE fund balance. Moved Schafer / Second Jones / Passed Unanimously to adopt Resolution No. 2856-09, approving a lending of the MTBE Reserve Fund to the Water Fund, up to a maximum of $1,100,00. The plans and specifications for these projects are complete. With the approval of the lending of MTBE funds, the Sonora/Ski Run project will be bid with three additive alternates for the AI Tahoe Waterline totaling 6,200 lineal feet and will be included in the Sonora/Ski Run Waterline project. This is being recommended in order to take advantage of the lower prices resulting from the current economic conditions. The AI Tahoe project components are discretionary. Moved Claudio / Second Rise / Passed Unanimously to authorize staff to advertise for bids. \.., This policy has been amended to include benefits derived from Board members attending training, educational conferences, professional meetings, or other gatherings of value. It also was amended to include ethics training for all staff who participate in decision making on behalf of the District, which are all employees who file Form 700 under the District's Conflict of Interest Code. Moved Schafer / Second Rise / Passed Unanimously to approve amendments clarifying benefits derived from Board participation, and adding the Conflict of Interest Form 700 filers are designated to receive ethics training. AB 1 234 requires that the Board adopt policies covering the reimbursement of authorized expenses relating to travel, lodging, meals, and other duties, and to also specify what types of occurrences qualify for reimbursement. The per diem rates for meals required while traveling on District business are based on the Federal GSA published rates in the IRS Publication 1542. The rates are based on the travel destination city and range from $30 to $64 per day. \., IRS guidelines are already applied to mileage and lodging rates. The policy was amended to reflect the current staff travel guidelines that are in place. MTBE RESERVE FUND SONORA / SKI RUN / AL TAHOE WA TERLlNES BOARD POLICY SECTION 2130: TRAINING, EDUCATION, AND CONFERENCES BOARD POLICY SECTION 2140: BUSINESS EXPENSE, CREDIT CARD, VEHICLE USE & REIMBURSEMENT POLICY REGULAR BOARD MEETING MINUTES - MARCH 5, 2009 PAGE-4 ~ Moved Jones / Second Rise / Passed Unanimously to approve amendments using Internal Revenue Services guidelines for meal reimbursement rates, and identifying authorized expenses. The contract for the General Manager provides for a salary adjustment based on an average of applicable salary surveys. The Executive Committee met to discuss the survey figures and to review his past and future goals. Due to the poor economy, it was recom- mended a 2% salary adjustment be made, which is consistent with the management staff's adjustment. It should be noted that this recommendation in no way reflects poor performance on the part of the General Manager. Moved Claudio / Second Schafer / Passed Unanimously to set the 2009 salary range for the General Manager at 96.3% of survey maximum and authorized the monthly salary adjustment. Moved Claudio / Second Schafer / Passed Unanimously to approve payment in the amount of $1,104,302.79. \., Water and Wastewater Operations Committee: The committee met March 2 . Minutes of the meeting are available upon request. Staff gave an update on the Angora Tank project environmental process, and the City's proposed grading ordinance. Finance Committee: The committee met February 24 regarding the proposed 2009/10 budget and presented their recommendations at the March 4 Board budget workshop. 2:58 - 3:08 P.M. Citv Issues Ad Hoc Committee: The committee met March 5 in preparation for meeting with City repre- sentatives on March 10. Topics of discussion included: modification or elimination of street surcharge in return for maintaining current water deliveries to the City, zeroscaping for a city memorial area, elimination of the City water MOU, water conservation, and a water connection for Linear Park. 4.., Director Jones reported on his attendance at the February 11 County Water Agency board meeting. The major topic of discussion was related to a recent audit that was performed on reporting procedures. BOARD POLICY SECTION 2140: BUSINESS EXPENSE, CREDIT CARD, VEHICLE USE & REIMBURSEMENT POLICY (continued) GENERAL MANAGER 2009 SALARY RANGE PAYMENT OF CLAIMS BOARD MEMBER STANDING COMMITTEE REPORTS MEETING BREAK EL DORADO COUNTY WATER PURVEYOR REPRESENTATIVE REPORT REGULAR BOARD MEETING MINUTES - MARCH 5, 2009 PAGE - 5 \., Director Jones reported on the recent trip to Washington D.C. including: lobbying efforts, meetings held, the $5M federal grant awarded to the District for waterline replacement projects, and the probability of receiving additional funding over the next four years. BOARD MEMBER REPORTS Director Rise, who also trayeled to Washington, D.C., reported on the importance of maintaining legislative contacts, and felt that the legislative efforts were very beneficial and professional. Director Claudio reported on the Obama administration and the state of the current economy. President Mosbacher reported that the Board should submit their travel projections for the upcoming fiscal year, and on a solar power salesman from Alpine County. General ManaQer: Richard Solbrig reported on the status GENERAL MANAGER REPORTS of the Integrated Regional Water Management Plan, and on the joint utility conference he attended that focused on asset management and risk analysis. ~ District Information Officer: Dennis Cocking reported on the Tahoe Restoration Act reauthorization efforts, and on training for public officials related to public messages conveyed during emergency situations. STAFF REPORTS Assistant General ManaQer / Engineer: Paul Sciuto reported that representatives from the Lake Tahoe South Shore Chamber of Commerce met with staff as part of their on-going efforts to enlist District member- ship. After discussion was held, it was the consensus of the Board that their previous decision not to join still stands. LeQal Counsel: Attorney Kyistad reported plans were delivered of the bi-state park being proposed at Stateline that involyes roads, utility work, services, sanitation, potable water, etc. The District's input was requested. Their plans will be presented at the March 16 Water and Wastewater Committee meeting, and at the April 2 Regular Board meeting. ATTEST: 4: 55 P.M. 4.. \. \) Ii J) I r\f) \., \. w ~ C C) Z - I-- WI-- Ww :Ew enJ: 0:: en OZ 1--. (JZ WC) 0::- _en 01-- U.en OW 0::) 0::C) <C o In > 0:: <t I- Z ::> ....J o > U)W -0 Zz Q<t 1-0 <tZ :::2:LU 0::1= O<t LL zO:: -0 ~LL IZ 1-0 LL- O!:: zO OZ _0 1-0 LULU ....JO:: 0..0.. :::2:<t 81- ..0 I-Z OU) <t- zO s:Z o<t 0::> coO:: LUO I~ 1-0 IZ !::<t S::::2: LUI- 00 ZZ <t o 0:: o o o <t Z