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<�C UTILITY
SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Richard Solbri., General Mana•er Paul Sciuto, Assistant General Mana•er
Mary Lou Mosbacher, President BOARD MEMBERS 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
OCTOBER 15, 2009
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
October 15, 2009, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe,
c ity California.
BOARD OF DIRECTORS: ROLL CALL
President Mosbacher, Directors Rise, Claudio, Jones,
Schafer.
STAFF:
Solbrig, Hughes, Whalen, Cocking, Coyner, Henderson
Brown, Ryan, Curtis, Hoggatt, Carrion, Kosciolek, Butz,
Swain, Hussmann, Nolan, Attorney Kvistad.
GUESTS:
Tom Pavletic, Marvin Winer /Municipal Financial Services,
Andrew Strain, Blaise Carrig, Casey Blann /Heavenly Valley,
John Runnels, Peggy Cocoras, John Adamski.
Lisa Coyner led the pledge to the flag. PLEDGE OF ALLEGIANCE
Consent Item c. (Alpine County Annual Impact /Mitiga- CORRECTION TO THE AGENDA
tion /Compensation Fee) was brought forward for OR CONSENT CALENDAR
separate Board action.
Moved Schafer / Second Rise / Passed Unanimously to CONSENT CALENDAR
approve the Consent Calendar as amended:
f ilte a. Cul De Sac Holdings, LLC Water Main Extension —
Adopted Resolution No. 2873 -09 accepting the Cul
De Sac Holdings Water Main Extension;
REGULAR BOARD MEETING MINUTES - OCTOBER 15, 2009 PAGE - 2
b. CuI De Sac Holdings, LLC Sewer Main Extension - CONSENT CALENDAR
Adopted Resolution No. 2874 -09 accepting the Cul (continued)
De Sac holdings Sewer Main Extension;
c. See Consent Items Brought Forward;
d. Wastewater Treatment Plant Filter Rehabilitation -
Approved proposal from Brown & Caldwell Consulting
Engineers for design services, in the amount of
$38,204;
e. Angora Water Tank Replacement Sitework - Approved
Change Order No. 1 to KG Walters Construction
Company, in the amount of $3,990.57;
f. Arrowhead Well No. 3 Arsenic Treatment Facility -
Approved Change Order No. 3 to KG Walters
Construction, Inc., in the amount of $4,716.33;
g. Luther Pass Pump Station Standby Power Generation
Facility - Authorized an increase to Purchase Order
P21709 to AECOM for additional engineering services
for design of a removable roof panel, in the amount of
$5,214;
h. Harvey Place Reservoir Bypass Pipeline - Approved
proposal from c2me Engineering Services in general
accordance with the DVR Pipeline Proposal dated
September 29, 2009, in the amount of $26,290;
i. Diesel Particulate Filters - (1) Rejected low bid for
non - responsiveness; and (2) Awarded bid to the
lowest responsive, responsible bidder A -Z Emissions
Solutions, in the amount of $73,255.56;
j. Pump Run Service Truck - Authorized staff to advertise
for bids for one 4x4 1 /2 ton pickup truck;
k. Proposition 1A Securitization Program - (1) Adopted
Resolution No. 2875 -09 approving the form of and
authorizing the execution and delivery of a purchase
and sale agreement and related documents with respect
to the sale of the seller's Proposition 1A receivable
from the State; and (2) Directing and authorizing certain
other actions in connections therewith;
I. Approved regular Board meeting minutes dated
September 17, 2009;
m. Approved regular Board meeting minutes dated
October 1, 2009.
REGULAR BOARD MEETING MINUTES - OCTOBER 15, 2009 PAGE - 3
CONSENT ITEM BROUGHT FORWARDFOR BOARD ACTION
Debbie Henderson addressed the Board and provided a ALPINE COUNTY ANNUAL IMPACT
spreadsheet for the current year figure. The agreement MITIGATION /COMPENSATION FEE
between the District and the County of Alpine, dated (Consent Item c.)
June 2, 1982, provides for an annual payment to
compensate for and mitigate the impacts of Harvey
Place Dam Project. She explained the current year
obligation is a decrease and is attributed to District
Ordinance No. 506 -08 regarding relief for excess sewer
capacity. Previous year obligation was $115,700. The
current year obligation is $115,200.
Moved Schafer / Second Rise / Passed Unanimously to
authorize payment of District's annual mitigation fee to
Alpine County in the amount of $1 15,200.
PROPOSITION 218 MAJORITY PROTEST PUBLIC HEARING
President Mosbacher opened the public hearing at
2:05 p.m.
Pursuant to the requirements of Proposition 218, Paul REPORT ON CUSTOMER
Hughes reported that on August 28, 2009, Heavenly NOTIFICATION
Valley was mailed notification of the proposed rate
change which met the 45 day notification requirement.
Tom Pavletic and Marvin Winer of Municipal Financial PRESENTATION OF SNOWMAKING
Services presented a PowerPoint presentation of the WATER RATES FOR HEAVENLY
Calculation of Rates to be Assessed for Water Delivered VALLEY
for Snow - making Purposes. It included justification for
calculating rates on a special /contractual basis; factors
and values used in calculating annual revenue requirements;
calculation figures of annual revenue requirements; factors
used in the calculation of rates; calculation of rates and
rationale for not assessing a capacity charge.
Heavenly Valley filed no protest. REPORT ON PROTEST RECEIVED
The Public Hearing was closed at 2:22 p.m.
ITEMS FOR BOARD ACTION
District staff and Heavenly representatives have HEAVENLY / DISTRICT WATER
developed a new water service facilities for supplying SERVICE AGREEMENT
snowmaking water to Heavenly in order to meet its
increased water demands. This agreement would provide
Heavenly up to 750 acre feet of water each calendar year,
k w October 1 through March 31 at a maximum delivery rate
of 4,500 gallons per minute, with certain scheduled
exceptions. Municipal Financial Services developed rates
for this new usage agreement and determined an annual
REGULAR BOARD MEETING MINUTES - OCTOBER 15, 2009 PAGE - 4
service charge of $202,000, and a metered consumption HEAVENLY / DISTRICT WATER
rate of $0.404 per 100 cubic feet. This rate structure SERVICE AGREEMENT
covers the District's costs. The rates shall be subject to (continued)
adjustment in an amount equal to the average percentage
adjustment of any future rate changes. The agreement
does not require a capacity charge as Heavenly will be
bearing the costs of all infrastructure improvements. This
proposed agreement will commence on October 1 of the
calendar year in which Heavenly has completed the
necessary improvements and requests the District to make
the water available.
Moved Schafer / Second Rise / Passed Unanimously to
authorize execution of the Water Service Agreement with
Heavenly Valley Limited Partnership.
Paul Hughes reported that staff will re -visit the language ORDINANCE NO. 518 -09: TIME
pertaining to penalties versus an administrative fee for LIMITS ON SEWER PERMITS
renewing a permit or letting a permit expire. He requested
the Board discuss the issue, but take no action at this
time.
Lisa Coyner explained the reasons for this amendment.
Currently, the Administrative Code does not have
a time limit or expiration date for sewer permits. There
are many outstanding permits, some over ten years old,
in which connections to the sewer system have not been
made. This has caused some confusion for property
owners holding outstanding permits as to which of the
District's Ordinances, rules, or regulations apply. An
amendment would make the permitting and inspection
process clearer and also provide a reasonable time to
complete construction to the District's sewer system.
Board discussion followed. Staff was directed to
re- submit the item with amended language at the next
Board meeting.
No Board Action.
Richard So!brig reported that the Management MOU MANAGEMENT MEMORANDUM OF
Ad Hoc Committee and the District's management UNDERSTANDING
negotiating team met to discussed the employment
contract. It was agreed this would be a one year contract
effective January 27, 2010, to January 5, 2011, and
that there would be no adjustment to the salary scale for
2010. It was also agreed that the managers will have
representatives and participate in any future discussions
conducted between the District and the Union employees
concerning medical insurance coverage or changes to the
,r wellness program during the upcoming process of renew-
ing the Union MOU. The Union MOU is due to expire at
the end of June, 2010.
REGULAR BOARD MEETING MINUTES - OCTOBER 15, 2009 PAGE - 5
kw Moved Claudio / Second Schafer / Passed unanimously MANAGEMENT MEMORANDUM OF
to approve one year contract. UNDERSTANDING
(continued)
Moved Schafer / Second Claudio / Passed Unanimously PAYMENT OF CLAIMS
to approve payment in the amount of $1,552,885.52.
Water and Wastewater Operations Committee: The BOARD MEMBER STANDING
committee met October 12. Minutes of the meeting COMMITTEE REPORTS
are available upon request.
Management and Union MOU Ad Hoc Committee met BOARD MEMBER AD HOC
on October 13. Results of the meeting are reflected COMMITTEE REPORTS
above.
Grizzly Flats is experiencing water shortage issues, a EL DORADO COUNTY WATER
failing system, and the State has asked them to prove AGENCY PURVEYOR
their water rights. The State took $189,000 due to REPRESENTATIVE REPORT
Proposition 1 A. They will be applying for the Loan
Securitization Program. The Water Agency Legislation
and Policy 4 guidelines were supposed to be discussed
but were continued to the next meeting. The agency is
having personnel issues.
Director Claudio reported he has received comments BOARD MEMBER REPORTS
k w from the public regarding water meters and concerns
how it may impact their bills.
Director Schafer announced that he will be living in
South Lake Tahoe for the next four years.
General Manager: Richard Solbrig reported on two GENERAL MANAGER REPORTS
items:
1) Integrated Regional Water Management Plan and
Proposition 84 - The partnership met and projects were
submitted by all the partners. There will be future
meetings to prioritize the submitted projects with a
possible grant submission sometime in Summer 2010.
2) City Water MOU - Is on the City Council's agenda on
Tuesday, October 20 for discussion. It was suggested
that Director Claudio and a District management staff
member who is familiar with the MOU attend this
meeting.
District Information Officer: Dennis Cocking reported on STAFF REPORTS
five items:
1) SB 802, which would have forced project retainages
to 5 %, has been vetoed by the Governor.
2) SB 67 Securitization of Proposition 1A passed the
Senate and is on the Governor's desk for signature.
REGULAR BOARD MEETING MINUTES - OCTOBER 15, 2009 PAGE - 6
il 3) The Department of Interior passed a spending bill that STAFF REPORTS
included $5M for the Lake Tahoe Community Fire (continued)
Protection Partnership group, is out of conference
committee, and should be on the President's desk for
signature in the next two weeks.
4) The reauthorization of the LTRA (Lake Tahoe Res-
toration Act), now called LTRA 2, is ready to be
introduced.
5) He has been elected to ACWA Region 3 Board of
Directors
3:23 - 3:31 P.M. MEETING BREAK AND ADJOURN-
MENT TO CLOSED SESSION
ACTION / 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: Tahoe Asphalt, Inc., and
Tahoe Asphalt Materials Company,
LLC, vs. STPUD, Case No.
SC20090104, El Dorado Superior
Court
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. El
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.
3:51 P.M. ADJOURNMENT
32 e-C■.)/10-iliaZA-
aru Mosbacher , Board President
Y �.
South Tahoe Public Utility District
ATTEST: Y `�
kly By Chris Wt( n, Assistadt Clerk of the Board
Kathy Sharp, Clerk of the Board
South Tahoe Public Utility District
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