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01-20-110 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 JANUARY 20, 2011 MINUTES BOARD OF DIRECTORS: President Rise, Directors Cefalu, Schafer, Jones. Director Mosbacher was absent. STAFF: Solbrig, Sharp, Sciuto, Hughes, Bergsohn, Brown, Ryan, VanGorden, Hoggatt, Johnson, Thiel, Curtis, Bledsoe, Attorney Herrema GUESTS: John Runnels, Hector Hernandez ROLL CALL John Runnels led the pledge to the flag. PLEDGE OF ALLEGIANCE John Runnels reported Lakeside Auto has a delivery service District staff should utilize in order to reduce costs for staff time, and vehicle and fuel usage. Hector Hernandez reported to the Board that the water meter program was unfair since after rebuilding his home as a result of the Angora fire, he had to pay for and install a water meter, while others have since received free water meters and installation. The Board explained the policy regarding water meters and that unfortunately, there is nothing that can be done to resolve this problem. Director Schafer requested Consent Item h. (USDA Forest Service Sewer Special Use Permit) be removed from this agenda and placed on a future agenda COMMENTS FROM THE AUDIENCE CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR REGULAR BOARD MEETING MINUTES - JANUARY 20, 2011 PAGE - 2 to allow staff time to verify the fees charged to cover CORRECTIONS TO THE AGENDA OR costs associated with processing the master sewer CONSENT CALENDAR line permit renewal are fair and equitable. (continued) Moved Schafer / Second Cefalu / Mosbacher Absent / CONSENT CALENDAR Passed to approve the Consent Calendar as amended: a. Purchase 1 Ton Cab & Chassis Truck: Underground Repair Water - Authorized purchase of truck from San Francisco Ford, Lincoln, Mercury, in the amount $24,803.75; b. Purchase 1 Ton Cab & Chassis Truck: Underground Repair Sewer - Authorized purchase of truck from San Francisco Ford, Lincoln, Mercury, in the amount of $24,803.75; c. Camera for T.V. Truck (63) - (1) Made finding that Weco is the District's sole source vendor for Cues; (2) Authorized an exception to formal bidding procedures as authorized in the Purchasing Policy for a sole source purchase of matching and compatible equipment; and (3) Approved purchase of new camera and transporter for the T.V. truck, in the amount of $33,225, including tax and delivery; d. Diamond Valley Ranch (DVR) Pipeline Project - Phase 2; Geotechnical Investigation - Accepted proposal from Construction Materials Engineers, Inc., to complete a geotechnical investigation, in the not to exceed amount of $18,100; e. Lake Tahoe Boulevard 12 -Inch Steel Waterline Replacement and Highway 50 Utility Relocation Project - (1) Approved Project Closeout Agreement and Release of Claims for Teichert Construction; and (2) Authorized staff to file a Notice of Completion with the El Dorado County Clerk; f. 2010 Meter Installation Project: Phase 1 - Approved Change Order No. 3 to Teichert Construction in the amount of $25,054.72; g. O 2010 Water Meter Installation Project: Phase 2 - Approved Change Order No. 4 to Campbell Construction Company, Inc., in the credit amount of $250,315.12; 4) REGULAR BOARD MEETING MINUTES - JANUARY 20, 2011 PAGE - 3 h. Item removed; CONSENT CALENDAR (continued) i. Approved Regular Board Meeting Minutes: December 2, 2010; j. Approved Regular Board Meeting Minutes: December 16, 2010. ITEMS FOR BOARD ACTION Julie Ryan reported nine bids were received at the January 12 bid opening. Ryan reviewed three minor contractual deviations found, and implications of those deviations which did not materially affect the bid. Moved Jones / Second Schafer / Mosbacher Absent / Passed to waive the minor bid irregularities and award the bid to the lowest responsive, responsible bidder, GSE Construction, in the amount of $8,020,860.29. Moved Schafer / Second Cefalu / Mosbacher Absent / Passed to approve payment in the amount of $1,580,359.07. Water and Wastewater Operations Committee: The committee met on January 17. Minutes of the meeting are available upon request. Finance Committee: The committee met January 20 and discussed service charges to turn water on and off, and will likely recommend fees be waived for calls received during normal business hours, and increase the service charge for calls received on weekends or outside of normal business hours, to cover cost of overtime. The committee also discussed the second proposal received from City staff for the Aspens low-income housing project. Their proposal was that the District finance half of the capacity charges (pay the water, finance the sewer) and give a 3% loan on the remain- ing $580,000 over 50 years. However, their proposal does not explain how the $10,000 annual payment can be paid. Additional discussions are needed before a final recommendation can be made. HEADWORKS REPLACEMENT PHASE 2 PAYMENT OF CLAIMS BOARD MEMBER STANDING COMMITTEE REPORTS Lukins Water Company: Richard Solbrig reported no BOARD MEMBER AD HOC COMMITTEE C comments have been received from City staff regarding REPORTS the "think piece" that was developed to help identify potential funding sources for system improvements. REGULAR BOARD MEETING MINUTES - JANUARY 20, 2011 PAGE - 4 Supervisor Nutting will replace Supervisor Santiago on the County Water Agency Board of Directors. The main topic of discussion at the January 19 meeting was about the final impact report for 15,000 acres of additional water (Fazio water). Dave Eggerton, the new general manager of the County Water Agency, will visit the District and tour facilities on January 27. Director Schafer reported on his attendance at the CASA (California Association of Sanitation Agencies) mid -year conference. He distributed a written report detailing topics covered and brought back information of interest for staff, including expected changes with congress and new legislative processes. Total conference costs amounted to $1,425.30. President Rise reported a member of the water crew provided excellent customer service when responding to a water leak; two long-time community residents, Ruth Bauman and Carl Olson, recently passed away; urged the Board to take a position of support for Ted Gaines' efforts to change the fire code in relation to fire sprinkler requirements (he will place this on the next agenda for the Board's consideration and possible action); and that local special districts will be included in the legal service providers rate survey. EL DORADO COUNTY WATER AGENCY PURVEYOR REPRESENTATIVE REPORT BOARD MEMBER REPORTS Richard Solbrig reported on attempts to negotiate lower GENERAL MANAGER REPORT costs from Barton Hospital; information about the District will be presented to the Tahoe Douglas Rotary and SIRS (Sons in Retirement) in response to outreach efforts to local service clubs; billing for water will resume for residents who were affected by declining groundwater levels near the Al Tahoe well 15 years ago; and former Customer Service Manager, Bob Eppler, passed away. Assistant General Manager / Engineer: Paul Sciuto STAFF REPORTS reported he met with representatives from CaIPECO, the new company who took the place of Sierra Pacific. District Information Officer: Dennis Cocking offered to develop policy points for Board members to use in order to deliver consistent messages to help address customer concerns about the meter program. 3:10 - 3:20 P.M. MEETING BREAK C 3:20 P.M. ADJOUNMENT TO CLOSED SESSION REGULAR BOARD MEETING MINUTES - JANUARY 20, 2011 PAGE - 5 ® 3:35 P.M. • RECONVENED TO OPEN SESSION ACTION / REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION No reportable Board action. No reportable Board action. Moved Rise / Second Schafer / Mosbacher Absent / Passed to approve the initiation of litigation. The action, defendants, and other particulars will, once formally commenced, be disclosed to any person upon inquiry, unless to do so would jeopardize the District's ability to effectuate service of process on one or more unserved parties, or that to do so would jeopardize the District's ability to conclude existing settlement negotiations to its advantage. (See Gov. Code, 54957.1(a) (2).) No reportable Board action. C3:35 P.M. Pursuant to Government Code Section 54956.9(a)/Conference with Legal Counsel -Existing Litigation re: United States of America v. Alpine Land & Reservoir, Co., et al., Civil Action No. 3:73-cv-00183-LDG, Subfile 3:73-cv-00207-LDG, United States District Court for the District of Nevada 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 ret. 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 Pursuant to Government Code Section 54956.9(c)/Conference with Legal Counsel -Anticipated Litigation (One Case) Pursuant to Government Code Section 54957(a)/Conference with Labor Negotiators: Richard Solbrig/ General Manager, Board of Directors Employee Organization: Stationary Engineers, Local 39 ADJOURNMENT REGULAR BOARD MEETING MINUTES - JANUARY 20, 2011 PAGE - 6 ATTEST: Dale Rise, Board President South Tahoe Public Utility District Kathy Sharp, grk of the Bdbrd South Tahoe Public Utility District DATE: BOARD OF DIRECTORS MEETING GUEST SIGN -IN SHEET IN ACCORDANCE WITH THE BROWN ACT: COMPLETION OF THIS INFORMATION IS VOLUNTARY, NOT MANDATORY, AND IS NOT A PRECONDITION FOR ATTENDANCE. NAME & TITLE (PLEASE PRINT) COMPANY ADDRESS PHONE # & FAX EMAIL ADDRESS / ��� yii1 "'��' g �vcAL��( ' iwkowt�-m? IWCCRC_,,t) C2