11-02-06
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SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Richard Sol brig, General Manager
Eric W. Schafer, President
BOARD MEMBERS
Paul Sciuto, Assistant Manager
Duane Wallace, Vice President
James R. Jones, Director
Mary Lou Mosbacher, Director
Kathleen Farrell, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
NOVEMBER 2, 2006
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
November 2, 2006, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe, CA
\., BOARD OF DIRECTORS: ROLL CALL
President Schafer, Directors Jones, Farrell,
Mosbacher. Director Wallace was absent.
STAFF:
Solbrig, Sciuto, Sharp, McFarlane, Cocking, Brown,
Bird, Curtis, Powers, R. Johnson, Attorney Berg,
Attorney Kvistad
GUESTS:
Eric Graham I Maxwell Research
Moved Mosbacher / Second Farrell / Wallace Absent /
Passed to approve the Consent Calendar as
submitted:
CONSENT CALENDAR
a. Authorized staff to solicit bids for new Caterpillar
loader;
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b. North Gate Repair - (1) Authorized exception to
Purchasing Policy for special circumstances; and
(2) Authorized purchase of gate repair, parts, and
labor from R&S of Sacramento, Gates and Entry
Controls, in an amount not to exceed $16,793.40;
REGULAR BOARD MEETING MINUTES - NOVEMBER 2, 2006
PAGE - 2
. c, Authorized staff to advertise for bids for continued
\., cattle grazing in Alpine County for 2007 season;
d. 2006 AI Tahoe waterline replacement, Highway 50
Waterline Replacement Reno to Meeks and Bigler to
San Jose, Bayview Waterline, Bayview Well Controls
Building Facility, and Customer Service/Operations/
Laboratory Facility - Authorized staff to reduce
retainage to 5% for projects listed;
e. Resolution of Intention to Join the CalPERS Risk
Pool- Adopted final Resolution No. 2819-06,
authorizing an amendment to the contract.
CONSENT CALENDAR
(continued)
ITEMS FOR BOARD ACTION
During recent union negotiations, the District agreed to
form a joint committee to design a voluntary tax-free
retirement health savings plan for District employees and
to implement the plan by January 1,2007.
The District will be participating in the Vantage Care
Retirement Health Savings (RHS) plan developed by the
'-' ICMA (International City Manager's Association) Retire-
ment Corporation. It is a health benefit savings vehicle
that allows employees to accumulate assets to pay for
medical expenses (e.g. health insurance, co-pays,
prescription expenses, etc.) at retirement on a tax-free
basis. The plan is voluntary and allows employees to
designate from 1 % to 15% of their pay into the program.
In addition, upon separation of service, employees that
have so elected can contribute their remaining sick pay,
vacation pay, compensatory time pay, and or holiday pay
to the program. The participants will be charged an adminis-
tration fee of .4% of their account balance annually and
retirees pay an additional $30 annual fee. The program is
important because the District does not provide post
retirement medical benefits to retirees.
Rhonda McFarlane reported the Retirement Health Savings
Plan developed by ICMA-RC is currently going through IRS
scrutiny, and recommended if approved, the enrollment be
delayed until those issues are resolved. Gary Kvistad stated
a side letter with the Union would need to be executed.
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RETIREMENT HEALTH SAVINGS
PLAN
REGULAR BOARD MEETING MINUTES - NOVEMBER 2,2006
PAGE - 3
Moved Jones / Second Mosbacher I Wallace Absent /
\.,. Passed to approve the establishment of the South Tahoe
Public Utility District's retirement health savings plan and:
(1) Adopted Resolution No. 2818-06 adopting the Vantage
Care Retirement Health Savings Program; (2) Authorized
execution of the Plan Adoption Agreement, Declaration of
Trust, Retiree Medical and Dental Expense Reimbursement
Plan and the Administrative Services Agreement; and
(3) Approved delayed enrollment until such time as staff
receives assurances that the elective pre-tax contributions
are allowable by the IRS. In addition, staff was directed to
enter into a MOU side-letter with the Union to allow the
delay in instituting the Plan.
RETIREMENT HEALTH SAVINGS
PLAN
( continued)
Moved Farrell / Second Jones / Wallace Absent /
Passed to approve payment in the amount of
$2,216,072.66.
PAYMENT OF CLAIMS
Water and Wastewater Operations Committee: The
committee met October 30. Minutes of the meeting
are available upon request.
BOARD MEMBER STANDING
COMMITTEE REPORTS
Finance Committee: The committee met November 2.
~ Minutes of the meeting are available upon request.
Executive Committee: The committee met October 30
to discuss the District's response to the EI Dorado County
Water Agency's proposed amendment to Policy 3
(related to the percentage of property tax revenues the
agency diverts from the District). Supervisor Norma
Santiago, will assist the District.
General ManaQer: Richard Solbrig reported on three items: GENERAL MANAGER REPORTS
1) The City Manager called the Department of Health
Services (DHS) to inquire about funding for system improve-
ments for the Lukins Water Company. That phone call
prompted the DHS to schedule an inspection of the water
system since they realized one has not been performed in
many, many years.
2) A customer contacted the City re: a streetlight out on
Glenwood & Lewis. The City Manager responded to the
customer that streetlights were the District's responsibility,
and copied the letter to the City Council, City Planner, and
the police chief. The District sent the City and their staff a
letter clarifying the District is only a billing mechanism for
j Sierra Pacific Power Co. and the City, and is not in charge
..,. of maintenance.
REGULAR BOARD MEETING MINUTES - NOVEMBER 2,2006
PAGE - 4
3) Since costs regarding utility relocation should not be
'-' addressed through a MOU, CTC will incorporate the other
provisions into its guidelines instead of by a MOU. The
District received a large bill for utility relocation and should
not be expected to be responsible for those costs since
they were part of a transportation project.
GENERAL MANAGER REPORTS
(con't.)
Assistant General Manaoer/Enoineer: Paul Sciuto reported STAFF REPORTS
on the cleanup of the October 17 emergency generator fuel
spill.
District Information Officer: Dennis Cocking reported on
two items:
1) He met with ACWA's state legislation committee re:
utilizing the water code to provide board compensation;
2) He is working on a new, improved water conservation
incentive program, including a turf buy back program,
and incentives for commercial washing machines. He
will bring this program before the Board in January for
their consideration.
2:50 - 3:00 P.M.
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4:00 P.M.
MEETING BREAK AND ADJOURN-
MENT TO CLOSED SESSION
RECONVENED TO REGULAR
SESSION
ACTION I REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION
No reportable Board action.
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Pursuant to Government Code
Section 54956.8/Real Estate
Negotiations:
Negotiating Parties: Board Ad Hoc
Committee, General Manager,
Assistant General Manager/Engineer,
Chief Financial Officer
Under Negotiations: Price and Terms
Property Identification: Lukins Water
Company, 2031 West Way, South
Lake Tahoe, CA
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REGULAR BOARD MEETING MINUTES - NOVEMBER 2, 2006
PAGE - 5
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No reportable Board action
No reportable Board action.
No reportable Board action.
No reportable Board action.
4:00 P.M.
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel - Existing Litigation re:
Beth Jett, Kendall Pearce, and
Pearce Family Trust Dated 1-20-88
vs. STPUD, Cox & Cox Construction,
Inc., a California Corporation, Nimbus
Engineers, a Nevada Corporation and
Does 1-100, Inclusive, Civil Action
No. PC 20050567, Superior Court,
County of EI Dorado. State of Ca.
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.
Pursuant to Government Code
Section 54956.9(b )/Conference with
Legal Counsel - Anticipated Litigation
(Three Cases)
Pursuant to Government Code
Section 54956.9(a)/Conference with
Legal Counsel- Existing Litigation:
STPUD vs. 1442.92 Acres of Land
in Alpine County, Ca.; et aI., United
States District Court for the Eastern
District of Ca., Sacramento Division,
Case No. CIV S-02-0238 MCE JFM
ADJOURNMENT