12-21-06
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SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Richard Solbri~, General Manaier
Eric W. Schafer, President
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BOARD MEMBERS
~aul Sciuto, Assistant Manawer
Duane Wallace, Vice President
James R. Jones, Director
Mary Lou Mosbach~r, Director
Kathleen Farrell, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
DECEMBER 21, 2006
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
December 21, 2006, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake
Tahoe, CA
\., BOARD OF DIRECTORS: ROLL CALL
President Schafer, Jones, Wallace, Farrell.
Director Mosbacher was absent.
STAFF:
Solbrig, Sciuto, Sharp, McFarlane, Henderson, Torney,
Hussmann, Curtis, Cocking, Hoggatt, Ryan, Donovan,
Bergsohn, Attorney Kvistad.
GUESTS:
Larry Mace/Grant Thornton, LLP
Moved Jones / Second Farrell / Mosbacher Absent / CONSENT CALENDAR
Passed to approve the Consent Calendar as submitted:
a. Diamond Valley Ranch Contaminated Soil Removal -
Approved Change Order No.1 to Pacific States
Environmental Contractors, Inc., in the amount
of $4, 162;
b. Grazing Permit Proposals - Awarded contract to
the highest responsive, responsible bidder, Urrutia
Ranch, in the amount of $14,660;
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REGULAR BOARD MEETING MINUTES - DECEMBER 21,2006
PAGE - 2
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c. Tahoe Regional Planning Agency (TRPA) Mitigation
Payment - Authorized payment to TRPA for 5%
mitigation fee on new sewer;
d. AI Tahoe Waterline Replacement 2006 -
(1) Approved Change Order No. 3 for a deduction
to retainer refund to White Rock Construction, Inc.,
in the amount of $1,160.89; (2) Approved the
project Closeout Agreement and Release of Claims;
and (3) Authorized staff to file a Notice of Comp-
letion with the EI Dorado County Clerk;
e. Bayview Waterline - (1) Approved the project
Closeout Agreement and Release of Claims for
T&S Construction Company, Inc., and
(2) Authorized staff to file a Notice of Completion
with the EI Dorado County Clerk;
f. Bayview and South Upper Truckee Well No.3
Control Buildings Design - Authorized increase to
Purchase Order No. P16097 in the amount of
$156,316 for extra work items required to
incorporate a corrosion control treatment system
in the engineering Plans and Specifications for the
South Upper Truckee Well No.3 well controls
facility design;
\.; g. 2006 Municipal Wells Destruction Program -
(1) Approved Change Order No.1 for Zim Indus-
tries, Inc., for a reduction in the amount of
< $350>; and (2) Authorized staff to file a
Notice of Completion with the EI Dorado County
Clerk.
Larry Mace reviewed the results of the 2006 audit.
No adjustments or corrections were recommended.
A management letter was issued noting there were
no significant deficiencies. He outlined requirements
that are new for this year.
Mr. Mace addressed items that need attention, and
suggested implementing an IT disaster recovery plan.
The Board expressed appreciation to the staff of the
Finance Department for their efforts.
CONSENT CALENDAR
(continued)
PRESENTATION: Report on the
2006 Fiscal Year Financial
Statement Audit (By Larry Mace,
Partner, Grant Thornton, LLP)
ITEMS FOR BOARD ACTION
The District is currently doing upgrades to the David
Lane Booster Station to provide much needed reliability,
" reduce maintenance, and increase the GPM flow to
"""the Heavenly Valley Tank. Heavenly Valley Resort will
share in the cost of this upgrade since they will benefit
DAVID LANE BOOSTER STATION
UPGRADES
REGULAR BOARD MEETING MINUTES - DECEMBER 21, 2006
PAGE - 3
from the increased flows in the winter for their snow-
making process. Heavenly will purchase and provide
fa.., three motor upgrades to convert from the existing
75 Hp motors to 100 Hp high efficiency motors, and
the warranties to the District. Staff requested approval
to sole source the pumps to match the one existing
Aurora pump that has been purchased. The previous
brand of pump was not reliable and had poor pumping
capability.
Moved Farrell / Second Jones I Mosbacher Absent /
Passed to: (1) Waive bidding procedures as outlined in
the District's Purchasing Policy, for sole source supplier;
(2) Approve purchase of two Aurora Model 421, stage
split case pumps from PumpWorks, LLC, in the amount
of $13,900 each for a total amount of $27,800 plus
tax; and (3) Authorize staff to negotiate a reimburse-
ment agreement with Heavenly Valley Resort.
Hometown Health Providers (HHP), the District's
Preferred Provider Organization (PPO) has given notice
that they will no longer provide network and/or
utilization services to clients whose claims are adminis-
tered by a non-preferred third party administrator (TPA).
FirsTier Administrators, Inc., is not on their list of
three preferred TPAs.
\., Nancy Hussmann reported on the options available.
The employees' health insurance subcommittee, and
the Finance Committee, recommended changing the
PPO network to Universal Health Network and keeping
FirsTier as the District's third party administrator.
Hussmann reported on the recommendations made
for excess insurance carrier for 2007, funding levels;
and COBRA rates.
Moved Wallace / Second Farrell / Mosbacher Absent /
Passed to: (1) Approve that Universal Health Network
will be the Preferred Provider Organization for 2007;
(2) Approve that FirsTier will remain the District's
third party administrator for 2007; (3) Approve that
Gerber will be the excess insurance carrier for 2007;
(4) Approve that the funding level will be $1,200 per
employee per month; (5) Approve 2007 COBRA rates
as follows:
Dental (individual) $50
Dental (family) $115
Medical (individual) $550
Medical (family) $1,375
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DA VID LANE BOOSTER STATION
UPGRADES
(continued)
SELF-INSURED HEALTH PLAN
RENEWAL
REGULAR BOARD MEETING MINUTES - DECEMBER 21,2006
PAGE - 4
Jim Hoggatt reported staff completed negotiations
'".. with the contractor and gave several reasons why the
..,. cost was higher than expected.
CUSTOMER SERVICE,
OPERATIONS AND LABORATORY
FACILITY
Moved Jones / Second Farrell / Mosbacher Absent /
Passed to approve Change Order No.8 to Roebbelen
Contracting, Inc. in the amount of $497,966.
Moved Wallace / Second Jones / Mosbacher Absent / ELECTION OF BOARD OFFICERS:
Passed to elect Director Eric Schafer to serve as Board PRESIDENT
President for the 2007 calendar year.
Moved Wallace / Second Farrell / Mosbacher Absent / ELECTION OF BOARD OFFICERS:
Passed to elect Director James Jones to serve as VICE PRESIDENT
Board Vice President for the 2007 calendar year.
Moved Wallace / Second Farrell / Mosbacher Absent / PA YMENT OF CLAIMS
Passed to approve payment in the amount of
$921,788.94.
Water and Wastewater Operations Committee: The BOARD MEMBER STANDING
committee met December 18. Minutes of the meeting COMMITTEE REPORTS
are available upon request.
Finance Committee: The committee met December 21.
Minutes of the meeting will be available soon.
...., Executive Committee: The committee met December
18 to discuss recent Washington D.C. representation
activity.
Director Jones reported on his attendance at the ACWA BOARD MEMBER REPORTS
conference in early December. He will prepare a report
outlining changes in the administration, and other topics
of interest. The MTBE committee was eliminated from
ACWA's agenda.
President Schafer reported on a newspaper article from
Utah regarding how capital projects were ranked and
prioritized.
Director Wallace reported action regarding the property EL DORADO COUNTY WATER
tax issue was delayed until January 10. AGENCY PURVEYOR REPORT
General Manaoer: Richard Solbrig reported on three GENERAL MANAGER REPORTS
items:
(1) The training conference week went well.
(2) Staff met with the City Fire Department re:
emergency response planning, and other issues of
mutual concern.
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REGULAR BOARD MEETING MINUTES - DECEMBER 21, 2006
PAGE - 5
(3) The City's plan to increase various fees will seriously
\.,. impact the District's budget by increasing construction
costs. Significant amounts of money will be spent for
trenching in the public right-of-way, meeting asphalt
requirements, digging in the street for connections, road
closure fees, etc. The District will ask for the City's
analysis and justification for charging all these fees. The
City would like the District to increase waterline size and
provide fire flows, but by imposing these fees, they have
thrown up serious roadblocks in achieving those goals.
Chief Financial Officer: Rhonda McFarlane reported on
two items:
(1) The pension plan was audited by Perry Smith.
Requirements of the audit were met; the District is in
compliance and received a clean audit.
(2) A meeting was set with Mr. Leal, who came before
the Board on December 7, to discuss a refund for the
fire hydrant installed near his home.
3:40 - 3:55 P.M.
5:15 P.M.
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GENERAL MANAGER REPORTS
(continued)
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
No reportable Board action.
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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.
REGULAR BOARD MEETING MINUTES - DECEMBER 21, 2006
PAGE - 6
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No reportable Board action.
No reportable Board action.
5:15 P.M.
ATTEST: ~~.o
Kat y har, lerk 0 the A6ard
South Tahoe Public Utility District
Pursuant to Government Code
Section 54956.9(b)/Conference
with Legal Counsel - Anticipated
Litigation (Two 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