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05-20-10SOUTH TAHOE PUBLIC UTILITY DISTRICT Richard Solbrig, General Manager Paul Sciuto, Assistant Manager Mary Lou Mosbacher, President BOARD MEMBERS James R. Jones, Director Eric W. Schafer, Director Dale Rise, Vice President Ernie Claudio, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT MAY 20, 2010 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, May 20, 2010, 2:10 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe, CA BOARD OF DIRECTORS: President Rise, Directors Mosbacher, Cefalu, Jones and Schafer. STAFF: Solbrig, Whalen, Sciuto, Hughes, Bledsoe, Curtis, Rasmussen, Cocking, Barnes, Thiel, Bergsohn, Cullen, Nolan, Attorney Herrema GUESTS: Adam Jensen/Tahoe Daily Tribune, Kathryn Reed/Lake Tahoe News, Ernie Claudio, John Runnels, Kenneth Reneer ROLL CALL John Thiel led the pledge to the flag. PLEDGE OF ALLEGIANCE Kenneth Reneer stated an extra sewer unit was found at his home after being discovered by the District when his home was listed for sale. He maintained the home has always had the same amount of bedrooms and bath- rooms since it was built, and nothing has been added. Mr. Reneer requested relief from being billed for back - charges, amounting to $342.12. Staff was directed to look into this situation further, and help develop a satisfactory solution. COMMENTS FROM THE AUDIENCE MAJORITY PROTEST HEARING President Rise opened the Proposition 218 Public Hearing at 2:11 p.m. to receive protests on proposed water and sewer rate increases. REGULAR BOARD MEETING MINUTES - MAY 20, 2010 PAGE - 2 Pursuant to the requirement of Proposition 218, Paul MAJORITY PROTEST HEARING Hughes reported that on March 23, 2010, notices were (continued) mailed to all property owners notifying them of the proposed 4% rate increase. The notice included all instructions on how to protest the increases. As of May 20, 2010, the number of protests received was 122, with 87 being valid, and 35 being invalid. It would take 8,900 valid protests to prevent the Board from adopting any rate increase. On May 6, 2010, the Board directed staff to revise the budget with a proposed rate increase of 2% instead of 4%. Documents presented reflect this change. Staff's recommendation remains unchanged that a 4% rate increase is justifiable and is the appropriate rate for the District in the long term. On May 6, 2010, members of the public agreed the 4% rate increase was justifiable but just not right for the current economic climate. None were received. The Majority Protest Hearing was closed at 2:17 p.m. Moved Jones / Second Schafer / Passed Unanimously to approve the Consent Calendar as submitted: a. Temporary Help for Inspections - Approved entering into a contract with Substitute Personnel or Blue Ribbon for two temporary employees, in the estimated amount of $35,000; b. Twin Peaks Booster Station - Approved Change Order No. 2 to Resource Development Company, Inc., in the amount of $6,1 10.96; c. Temporary Water Educators - Approved contract with Substitute Personnel for two temporary water educators, in the estimated amount of $25,000; d. Approved Regular Board Meeting Minutes: April 15, 2010; e. Approved Special Board Meeting Minutes: April 23, 2010; f. Approved Public Meeting Minutes: May 6, 2010; g. Approved Regular Board Meeting Minutes: May 6, 2010. PUBLIC COMMENTS CLOSE OF HEARING CONSENT CALENDAR REGULAR BOARD MEETING MINUTES - MAY 20, 2010 PAGE - 3 ITEMS FOR BOARD ACTION Ivo Bergson reported four bids were opened at the May 18, 2010, bid opening. The apparent low bidder, CES (Controlled Environmental Services) had two minor deviations; (1) did not include hazardous waste transporter number; and (2) did not provide contact info- rmation for the landfill proposed for disposal. Staff contacted CES for this information and was informed they intended to transport the spent media to a local transfer station. Staff has determined this does not constitute the project as outlined in the contract documents and therefore CES's bid should be declared non-responsive and should be rejected. Bergson reported the second lowest bidder, CH (Clean Harbors) had one deviation they did not include a hazardous waste transporter number. This deviation is regarded as a minor irregularity and staff recommended that it should be waived, and that the bid be awarded to CH. Moved Schafer / Second Jones / Passed Unanimously to: (1) Reject low bid as non-responsive; (2) Waive the minor irregularities and accept the Clean Harbors bid as the lowest responsive, responsible bidder, in the amount of $7,000. ARROWHEAD WELL NO. 3 MEDIA CHANGE OUT SERVICES John Thiel reported five bids were opened at the May 5, MEYERS WATERLINE 2010 bid opening. Campbell Construction was the REPLACEMENT PROJECT apparent low bidder. Two minor deviations were noted. This project is grant funded and Campbell has met all the DBE and grant requirements. He informed the Board that the Foundation for Fair Contracting (FFC) had submitted a letter suggesting that the contract could not be awarded to Campbell. Staff has reviewed the issues identified with District counsel and concluded Campbell cannot be prohibited from bidding based on the concerns outlined in the FFC's letter. Moved Mosbacher / Second Schafer / Passed Unanimously to waive the minor bid irregularities and award bid to the lowest responsive, responsible bidder Campbell Construction, in the amount of $856,467.50. A lengthy discussion ensued ranging from support for the original proposed 4% increase in water and sewer rates to secure and maintain capital improvement projects; to a 0% increase due to the poor current economic climate. ORDINANCE NO. 523-10: RATE AMENDMENT ORDINANCE REGULAR BOARD MEETING MINUTES - MAY 20, 2010 PAGE - 4 Moved Rise / Second Cefalu / Schafer, Jones and Mosbacher Voted No / Motion Failed to enact Ordinance No. 523-10 amending Ordinance No. 464, and superseding Ordinance No. 508-08 in its entirety which is a 2% rate increase for both sewer and water. Moved Schafer / Second Rise / Jones and Mosbacher Voted No / Passed to enact Ordinance No. 523-10 amending Ordinance No. 464 and superseding Ordinance No. 508-08 in its entirety including a 2% increase in sewer rates and a 2.5% increase in water rates. Moved Schafer / Second Cefalu / Mosbacher Voted No / Passed to adopt Resolution No. 2881-10 adopting the budget for the Water Enterprise Fund and authorizing staff to account for the additional .5% increase as appropriate. Moved Schafer / Second Rise / Mosbacher Voted No / Passed to adopt Resolution No. 2882-10 adopting the budget for the Sewer Enterprise Fund. District representatives attended the City Council meet- ing on May 18 and spoke to the Council regarding the District's second proposal of some project level issues the District has identified that may help to protect future financial interests of the District. The current ad hoc committee (Directors Rise and Cefalu) have offered to work with a City Council ad hoc committee to work together to identify solutions. A letter from the Board of Supervisor's was read aloud formally objecting to the redevelopment and requesting the Council not to approve it. The Council voted to waive the second reading of the ordinance and adopt the redevelopment proposal. A meeting will be held with the City and District staff. The District has 90 days from the May 18 vote to reach a mutually agreeable position with the City or file formal objections. No Board action. Moved Schafer / Second Cefalu / Passed Unanimously to approve payment in the amount of $ 1,038,475.02. ORDINANCE NO. 523-10: RATE AMENDMENT ORDINANCE (continued) RESOLUTION NO. 2881-10: FISCAL YEAR 2010/11 WATER ENTERPRISE FUND BUDGET RESOLUTION NO. 2882-10: FISCAL YEAR 2010/11 SEWER ENTERPRISE FUND BUDGET CITY REDEVELOPMENT AGENCY PROJECT NO. 2 PAYMENT OF CLAIMS Water and Wastewater Operations Committee Meeting: BOARD MEMBER STANDING The committee met on May 17. Minutes of the meeting COMMITTEE REPORTS are available upon request. The Board directed staff to look into possible disposition scenarios of the former Black Bart Post Office building. This item will be on the kagenda for the next scheduled meeting on June 1, 2010. Management/Union Medical Plan Negotiations Ad Hoc BOARD MEMBER AD HOC Committee: Staff is continuing to work on details of the COMMITTEE REPORTS REGULAR BOARD MEETING MINUTES - MAY 20, 2010 PAGE - 5 risk assessment portion of the wellness program. The BOARD MEMBER AD HOC Board's ad hoc committee will participate when staff has COMMITTEE REPORT found a cost effective program to present. (continued) Director Jones reported on several topics: (1) Job descriptions were rewritten that combine duties of the two positions that were eliminated last year. Final approval is pending; (2) Public Hearing on the proposed budget; (3) Staff continues to write and submit new policies and procedures to the Board for approval; (4) Agency will be moving to less expensive offices; and (5) Approximately $900,000 which has been held in a slush fund will be released, now purveyors can apply for additional project funds. The next Board meeting is June 2. EL DORADO COUNTY WATER AGENCY PURVEYOR REPORT General Manager: Richard Solbrig reported several staff GENERAL MANAGER REPORT members attended the neighborhood meeting for the Apache Booster Station. Four property owners from three neighboring properties attended. John Thiel displayed artists rendering for the building. All seemed happy with the project and the location. There will be a neighborhood meeting for the Echo View tanks project on Tuesday, May 25, 2010. Chief Financial Officer / Water Conservation Specialist: STAFF REPORTS Paul Hughes and Shelly Barnes reported on the Metered Rate Structure (AB 1420) and some confusion regarding one of the proposed BMP's concerning the percentage of volumetric structure vs. fixed rate. As more information becomes available, Board workshops will be scheduled. Assistant General Manager: Paul Sciuto gave an update on the several construction projects currently in process. He reported on the problems and difficulties with the water meters projects in both the City and the County. Staff is spending much time in the field with the contractors to come up with solutions. He also reported on some complaints by customers. District Information Officer: Dennis Cocking gave a legislative update for the State and Federal agencies: (1) The State will have a $20 billion shortfall; (2) Prop.1A borrowing will not be possible this year; (3) Redevelop- ment funds have been "appropriated" in the amount of $2 billion; (4) Amendments to AB 1975 (Fong) has been accepted that ensure water agencies are not responsible for costs and maintenance of water meters in multi -unit buildings; (5) USFS "administration costs" have been reduced to zero; (6) Elimination of the buy American clause in the FY10 federal appropriations; (7) Senator Feinstein submitted the $5 million Lake Tahoe Community Fire Protection Partnership's project request as part of the FY1 1 Interior spending package; and (8) Water Resources REGULAR BOARD MEETING MINUTES - MAY 20, 2010 PAGE - 6 Development Act request filed with Senator Feinstein STAFF REPORTS and Boxer's offices for the C -Line Replacement Project. (continued) This may produce possible future funding via the Bureau of Reclamation. 4:07 - 4:30 P.M. MEETING BREAK AND ADJOURN- MENT TO CLOSED SESSION ACTION / REPORT ON ITEM DISCUSSED DURING CLOSED SESSION No reportable Board action. No reportable Board action. No reportable Board action. No reportable Board action. Pursuant to Government Code Section 54956.9(b)/Conference with Legal Counsel -Anticipated Litigation (One Case) 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. Pursuant to Government Code Section 54956.9(a)/Conference with Legal Counsel - Existing Litigation re: False Claims Act Case: United States, the States of California, Delaware, Florida, Nevada, and Tennessee and the Commonwealths of Massachusetts and Virginia ex rel. John Hendrix v. J -M Manufacturing Company, Inc. and Formosa Plastics Corporation, U.S.A., Civil Action No. ED CV06- 0055-GW, United States District Court for the Central District of CA Pursuant to Government Code Section 54956.9(b)/Public Employee Evaluation Unrepresented Employee Position: General Manager Agency Negotiators: Board of Directors REGULAR BOARD MEETING MINUTES - MAY 20, 2010 PAGE -7 5:15 P.M. ADJOURNMENT ATTEST: By Chris V /h len, Assistant Board Clerk Kathy Sharp, Clerk of the Board South Tahoe Public Utility District Dal Rise, oard1 res Gent South Tahoe Public Utility District r BOARD OF DIRECTORS MEETING GUEST SIGN -IN SHEET DATE: � D‘LJ I IN ACCORDANCE WITH THE BROWN ACT: COMPLETION OF THIS INFORMATION IS VOLUNTARY, NOT MANDATORY, AND IS NOT A PRECONDITION FOR ATTENDANCE.