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09-16-10SOUTH TAHOE PUBLIC UTILITY DISTRICT Richard Solbri•, General Mana•er Dale Rise, President James R. Jones, Director BOARD MEMBERS Eric W. Schafer, Director Paul Sciuto, Assistant General Mana. er Mary Lou Mosbacher, Vice President REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT SEPTEMBER 16, 2010 MINUTES Chris Cefalu, Director The Board of Directors of the South Tahoe Public Utility District met in a regular session, September 16, 2010, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe, CA BOARD OF DIRECTORS: President Rise, Directors Cefalu, Mosbacher, Schafer. Director Jones was absent. STAFF: Solbrig, Sharp, Sciuto, Hughes, Cocking, Ryan, Bledsoe, Attorney Herrema GUESTS: ROLL CALL Brad Herrema led the pledge to the flag. PLEDGE OF ALLEGIANCE Staff requested that Action Item b. (Contractor Debar- CORRECTIONS TO THE AGENDA OR ment Procedure) be removed from the agenda. CONSENT CALENDAR Moved Schafer/ Second Cefalu / Jones Absent / Passed CONSENT CALENDAR to approve the Consent Calendar as submitted: a. Cold Creek Filter Plant and Ralph Tank SEZ Restoration Projects - Extended Northwest Hydraulic Consultants, Inc., contract for consulting services, in the amount of $73,741; b. Engineering Student Intern - Approved extension of contract with Substitute Personnel for one part- time engineering student intern through January 2011, in an amount not to exceed $13,000; REGULAR BOARD MEETING MINUTES - SEPTEMBER 16, 2010 PAGE - 2 c. North Apache Booster Station - (1) Waived bidding CONSENT CALENDAR procedures, as outlined in the District's Purchasing (continued) Policy, for standardized equipment from the sole area supplier; and (2) Approved purchase of one MTU 150 kW diesel -powered generator (Model 150-JC6DT3) from Nevada Generator Systems, Inc., in the amount of $39,693.03; d. Approved Regular Board Meeting Minutes: September 2, 2010. ITEMS FOR BOARD ACTION This contract primarily includes rehabilitation of Filters 5 and 6 at the wastewater treatment plant, replacement of valves and controls for Filters 1-6, modifications to the filter backwash system and other piping modifications. Seven bids were received at the September 14 bid opening. A careful review and analysis of the lowest bids showed only minor deviations. Moved Schafer / Second Mosbacher / Jones Absent / Passed to waive minor bid deviations and award the project to ERS Industrial Services, Inc., in the amount of $849,526.60. Moved Schafer/ Second Cefalu / Jones Absent / Passed to approve payment in the amount of $650,924.86 Water and Wastewater Operations Committee Meeting: The committee met on September 13. Minutes of the meeting are available upon request. 2010 FILTERS REHABILITATION PROJECT PAYMENT OF CLAIMS BOARD MEMBER STANDING COMMITTEE REPORTS Finance Committee Meeting: The committee met on September 16. Topics of discussion included: consideration of customer's request to waive water service fees for vacant Tots where water is not being used (staff was directed to prepare an ordinance for consideration by the full board), and health insurance plan renewal, including changes resulting from the healthcare package approved through the legislature. Richard Solbrig requested the Board appoint an ad hoc committee to assist with management negotiations. He was directed to bring this up at a future meeting after Board members have had a chance to consider their schedules. REGULAR BOARD MEETING MINUTES - SEPTEMBER 16, 2010 PAGE - 3 The September 8 Board meeting was held at the District. Topics of discussion included: approval of monitoring pro- gram to ensure infiltration basins do not contaminate groundwater, and applications are being accepted for the general manager position. Director Cefalu reported he received a complaint about the staging location used by the construction company doing night work for the District. The bright lights and noise were disruptive to neighbors. It was noted the project is nearly complete and the staging area will not be used for much longer. Director Mosbacher reported the STPUD/Alpine County Contracts Commission cancelled their last meeting and planned to reschedule soon. Director Schafer reported highways in the nation were assessed and California's were ranked among the lowest. He also reported that pension funds and benefits were being reduced across the country. President Rise reported the cause of an explosion in San Bernadino may have been due to a new sewer line that could have been installed on top of a gas line. He advocated that all lines in the District's collection system be entered into the GIS system. General Manager: Richard Solbrig distributed materials received from a training conference that provide a method, based on 10 attributes of effectively managed utilities, that Districts can use to measure their performance in the industry (a utility performance primer). EL DORADO COUNTY WATER AGENCY PURVEYOR REPORT BOARD MEMBER REPORTS GENERAL MANAGER REPORT Assistant General Manager / Engineer: Paul Sciuto reported STAFF REPORTS that the water meter projects in the city and county were both complete. Chief Financial Officer: Paul Hughes reported crews were following water meter installations to install MSUs and GPS coordinates. Work in the city limits is complete, and will be starting in the county next. He also reported requests for proposals for a water rate study (for metered rates) will be issued the beginning of October. REGULAR BOARD MEETING MINUTES - SEPTEMBER 16, 2010 PAGE - 4 Legal Counsel: Brad Herrema reported the Federal Court signed the Order dismissing third -party actions for contribution under CERCLA in the Meyers landfill litigation, pursuant to the District's stipulation with the City of South Lake Tahoe, El Dorado County, Douglas County and the South Tahoe Refuse. This concludes the litigation. District Information Officer: Dennis Cocking reported former congressman, John Doolittle, was now a federal lobbyist. He also reported staff met with Mr. Kinkhuff, a disgruntled customer, who appeared before the Board on September 2 to explain metered rates and to review his account. 2:50 P.M. STAFF REPORTS (continued) ADJOURNMENT TO CLOSED SESSION RECONVENE TO OPEN SESSION FOR ACTION/REPORT ON ITEM DISCUSSED IN CLOSED SESSION No reportable Board action. (See Staff Report from Legal Counsel above regarding conclusion of this litigation.) No reportable Board action. 2:58 P.M. 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 California 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 California ADJOURNMENT REGULAR BOARD MEETING MINUTES - SEPTEMBER 16, 2010 PAGE - 5 ATTEST: Dale Rise, Board President South Tahoe Public Utility District Kathy Sh South Tah Clerk of the 6'oard Public Utility District