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12-02-10c SOUTH TAHOE PUBLIC UTILITY DISTRICT Richard Solbrig, General Manager Paul Sciuto, Assistant General Manager Dale Rise, President James R. Jones, Director BOARD MEMBERS Mary Lou Mosbacher, Vice President Eric W. Schafer, Director Chris Cefalu, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT DECEMBER 2, 2010 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, December 2, 2010, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe, CA 440) BOARD OF DIRECTORS: ROLL CALL President Rise, Directors Cefalu, Mosbacher, Schafer Director Jones was excused for District business. STAFF: Solbrig, Sharp, Sciuto, Hughes, Ryan, Hoggatt, Hussmann, Attorney Kvistad Gary Kvistad led the pledge to the flag. PLEDGE OF ALLEGIANCE Consent Item a. (Headworks Replacement Phase 2) CONSENT CALENDAR was brought forward for discussion prior to Board action. Moved Schafer / Second Cefalu / Jones Excused /Passed to approve the Consent Calendar as amended: a. See Consent Items Brought Forward; b. Echo View and Angora Tank Replacement - Approved budget extension request from Bay Area Coating Consultants for inspection services, in the amount of $16,000; IDc. Approved Regular Board Meeting Minutes: November 4, 2010. REGULAR BOARD MEETING MINUTES - DECEMBER 2, 2010 PAGE - 2 CONSENT ITEM BROUGHT FORWARD FOR SEPARATE BOARD ACTION A list of sole -brand items for this project, along with HEADWORKS REPLACEMENT PHASE 2 findings for each was provided to the Board for approval PROJECT for the purpose of bidding and constructing this project. (Consent Item a.) Julie Ryan pointed out three products, were added to the list that were not deemed sole -brand previously: (1) Allen Bradley programmable logic computers with RSLogix; (2) Microsoft Windows computer operating system; (3) Wonderware SCADA software at plant. Moved Mosbacher / Second Cefalu / Jones Excused / Passed to approve list of named products to be listed without alternative in the contract documents. ITEMS FOR BOARD ACTION BB&H Benefits Design, Inc., (BB&H) performed an analysis SELF-INSURED HEALTH PLAN of the plan and determined renewal options and RENEWAL - FUNDING LEVEL, COBRA funding levels, and recommended a 4.2%overall increase RATES, AND STOP LOSS RENEWAL per employee per month, and a lower family funding level ID for 2011. The COBRA rate recommendations for 2011 did not change substantially from the 2010 rate recommendation. Other recommendations included purchasing a separate transplant policy (which pays 100% for transplants) and renewal with QBE Stop Loss Insurance Services. The Finance Committee reviewed this item and recommended approval. Moved Schafer / Second Rise / Jones Excused / Mosbacher Abstained / Passed to: (1) Approve funding level at $1,875 per employee per month; (2) Establish COBRA rates as single dental $80; single medical $750; family dental $225; family medical $2,000; and (3) Renew with QBE Stop Loss Insurance Services with a $75,000 specific level and a $1,600 separate transplant policy. (Director Mosbacher stated she abstained because she did not have sufficient time to read the information provided.) Jim Hoggatt reported staff met to evaluate projects listed in the 10 -year budget, using a risk evaluation process. He presented the 2011 project priority list to the Board and it was discussed in detail. 0 Moved Schafer / Second Cefalu / Jones Excused /Passed to approve the 2011 Project Priority List as presented. ENGINEERING DEPARTMENT 2011 PROJECT PRIORITY LIST • c c REGULAR BOARD MEETING MINUTES - DECEMBER 2, 2010 PAGE - 3 Moved Schafer / Second Cefalu / Jones Excused /Passed to approve payment in the amount of $2,184,170.19. Water and Wastewater Operations Committee: The committee met on November 29. Minutes of the meeting are available upon request. The committee discussed the small amount of MTBE that was present in a water quality sample, and the customer's concerns and request for treatment. Further tests will be done to be sure the pre- liminary results were not due to a lab error. Finance Committee: On November 23, the committee held an initial meeting with the rate study consultant, HDR. Minutes of the meeting are available upon request. Director Schafer reported on: President Obama's call for a freeze on federal pay; the review letter sent to Yorba Linda Water District; public sector wages and benefits; and unsuccessful efforts to tighten up the 1099 regulations. President Rise requested that staff modify the Adminis- trative Code to address shut off valves/stop and drains. General Manager: Richard Solbrig reported he sent letters to service organizations offering to provide presentations and information about the District. He also reported staff is collecting information needed to complete the comparison of legal providers rates. Chief Financial Officer: Paul Hughes reported as a result of the City of Bell scandal, staff provided compensation disclosure reports as requested by the State Controller, which will be posted on the web site along with other cities, counties, and special districts. Hughes requested direction concerning the capacity charges that are scheduled to be increased in January. It was the consensus of the Board to direct staff to prepare an agenda item for the Board to consider keeping the charges at the current level, with no increase. PAYMENT OF CLAIMS BOARD MEMBER STANDING COMMITTEE REPORTS BOARD MEMBER REPORTS GENERAL MANAGER REPORTS STAFF REPORTS 3:50 P.M. ADJOURNMENT TO CLOSED SESSION REGULAR BOARD MEETING MINUTES - DECEMBER 2, 2010 PAGE - 4 0 ACTION / REPORT ON ITEM DISCUSSED DURING CLOSED SESSION No reportable Board action. No reportable Board action. No reportable Board action. No reportable Board action. 4:40 P.M. c 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 54957.6(a)/Conference with Labor Negotiators - Unrepresented Employee Position: General Manager Agency Negotiators: Board of Directors Pursuant to Government Code Section 54957(a)/Conference with Labor Negotiators Agency Negotiators: Richard Solbrig/General Manager, Board of Directors Employee Organization: Management Unit Pursuant to Government Code Section 54957(a)/Conference with Labor Negotiators Agency Negotiators: Richard Solbrig/General Manager, Board of Directors Employee Organization: Stationary Engineers, Local 39 ADJOURNMENT REGULAR BOARD MEETING MINUTES - DECEMBER 2, 2010 PAGE - 5 ATTEST: CAL/1� , Kathy Sharp' of the Bard South Tahoe Public Utility District 0 Dale Rise, Board President South Tahoe Public Utility District