02-17-110
SOUTH TAHOE PUBLIC UTILITY DISTRICT
Richard Solbriq, 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
FEBRUARY 17, 2011
MINUTES
BOARD OF DIRECTORS:
President Rise, Directors Jones, Mosbacher, Schafer.
Director Cefalu was absent.
STAFF:
Solbrig, Sharp, Sciuto, Hughes, Thiel, Bergsohn,
Hussmann, Curtis, Attorney Herrema.
GUESTS:
Andrew Thiel, Ernie Claudio Eugene Palazzo/Director of
Redevelopment & Housing for the City of South Lake
Tahoe; Nancy Kerry, Redevelopment & Housing Manager
for the City of South Lake Tahoe; Shellan Rodriguez/Project
Manager, Pacific West Communities
Brad Herrema led the pledge to the flag.
Staff requested Consent Item i. (Union Memorandum of
Understanding) be removed from the agenda. It will
be placed on a future agenda for consideration.
Moved Schafer /Second Jones / Cefalu Absent /
Passed to approve the Consent Calendar as amended:
a. Grizzly Mountain Booster Station - Authorized Task
Order to AECOM for electrical, instrumentation and
control engineering services, in the amount not to
exceed $32,500;
ROLL CALL
PLEDGE OF ALLEGIANCE
CORRECTIONS TO THE AGENDA OR
CONSENT CALENDAR
CONSENT CALENDAR
REGULAR BOARD MEETING MINUTES - FEBRUARY 17, 2011 PAGE - 2
b. Grizzly Mountain Booster Station - Authorized Task CONSENT CALENDAR
Order to Hauge Brueck Associates for CEQA and TRPA (continued)
permitting assistance in the amount not to exceed
$25,000;
c. 2010 Meyers Waterline Replacement Project -
(1) Approved Change Order No. 4 to Campbell Con-
struction Company, Inc., in the credit amount of
<$32,954.55>; (2) Approved the Project Closeout
Agreement and Release of Claims; and (3) Authorized
staff to file a Notice of Completion with the El Dorado
County Clerk;
d. Echo View and Angora Tanks Replacement -
(1) Approved the Project Closeout Agreement and
Release of Claims for Resource Development Company;
and (2) Authorized staff to file a Notice of Completion
with the El Dorado County Clerk;
e. Headworks Replacement: Phase 1 - (1) Approved
the Project Closeout Agreement and Release of
Claims for Evans Brothers, Inc., and (2) Authorized
staff to file a Notice of Completion with the El Dorado
County Clerk;
f. Sale of Surplus Generator - Approved sale of surplus
generator to Nevada Generator Systems, in the amount
of $3,500;
g. Hydro Truck Bid - Authorized staff to advertise for bids
for a sewer cleaning truck and machine;
h. 2010 Legal Review of Front -End Specifications - Approved
amendment to the existing contract with Best, Best, &
Krieger LLP, in the amount of $3,102.50;
i. Consent item removed;
j. Luther Pass Pump Station Standby Power - (1) Approved
Change Order No. 5 to Sierra Nevada Construction, Inc.,
in the amount of $5,526; and (2) Added eighty-eight (88)
calendar days to the contract time;
k. Approved Regular Board Meeting Minutes:
January 20, 2011;
CI. Approved Regular Board Meeting Minutes:
February 3, 2011.
c
REGULAR BOARD MEETING MINUTES - FEBRUARY 17, 2011 PAGE - 3
Shellan Rodriguez, project manager for developer, Pacific PRESENTATION: THE ASPENS AT SOUTH
West Communities, Inc., gave a PowerPoint presentation LAKE TAHOE PROPOSED LOW -
that gave an overview of the proposed Aspens at South COME HOUSING PROJECT
Lake project (a 5.5 acres, 48 -unit low-income apartment
complex) near the corner of Ski Run Boulevard and
Pioneer Trail.
Ms. Rodriguez, along with Eugene Palazzo, Director of
Redevelopment & Housing for the City of South Lake Tahoe
explained project approvals and funding commitments that
have been received to date. They requested that the District
defer water capacity charges , in the amount of $550,000,
and would agree that the developer pay the fee over 55
years with 3% interest. The developer would pay $10,000 per
year, and if residual receipt payments were higher than
$10,000, the District would be first in line to receive payment.
The payment of $580,000 for sewer capacity charges will be
paid up front. A letter of commitment is required by March 11.
The Board discussed the risks of this proposal since there is no
guarantee the loan would be repaid if the project is not
profitable.
It was the consensus of the Board to request a recommend-
ation from the Finance Committee, and to direct legal
counsel to issue an opinion whether the request is considered
to be a gift of public funds and if it is allowable.
No Board action.
ITEMS FOR BOARD ACTION
The District's Special Use Permit (SUP) for sewer facilities USDA SEWER SPECIAL USE PERMIT
on Forest Service land expired a number of years ago.
After the District settled its portion of the Meyer's Landfill
litigation, the District submitted an application package
for a new SUP in March 2010. The Forest Service requires the
District to enter into a cost recovery agreement and reimburse
them application processing fees, including associated
environmental analysis. If the actual costs of processing the
application are lower than the estimated fee, the District
will be reimbursed the remaining amount.
Moved Schafer / Second Mosbacher / Cefalu Absent /
Passed to (1) Authorize execution of a Cost Recovery
Agreement with the USDA Forest Service for processing
the District's Special Use Permit application; and
(2) Authorize payment of the estimated processing fee in
the amount of $51,672.54.
REGULAR BOARD MEETING MINUTES - FEBRUARY 17, 2011 PAGE - 4
The Airport Well has been declining in water production
over the years. It was deemed a standby source of water
supply by the California Department of Public Health
due to the presence of arsenic slightly above the state
and federal maximum contaminant level. Staff believes
the well is amenable to well rehabilitation and well
modification methods that could restore lost drinking
water production and reduce arsenic concentrations
in a cost effective manner. If successful, the well
could be reclassified as an active source, without the
need for wellhead treatment. Funding for this well
evaluation, provided by the El Dorado County Water
Agency, requires that all work for the well evaluation
is completed by June 30, 2011.
Four submittals were received in response to the District's
requests for proposals. Staff reviewed and ranked the
proposals based on a set of pre -determined criteria,
and selected Farr West Engineers.
Moved Jones / Second Schafer / Cefalu Absent /
Passed to accept proposal from Farr west Engineers,
to provide engineering, well rehabilitation and well
profiling services in the amount of $80,000.
AIRPORT WELL EVALUATION
Moved Schafer / Second Rise / Cefalu Absent / Passed PAYMENT OF CLAIMS
to approve payment in the amount of $1,252,214.37.
Water and Wastewater Operations Committee: The
committee met on February 14. Minutes of the meeting
are available upon request.
The agency Board met on February 9. Election of officers
were held, and Director Jones was voted to be President
of their Board of Directors. There may be extra money
available to distribute to purveyors for additional projects.
The District's project funding requests for the 2011-2012
fiscal year budget are due March 1.
Director Jones reported he, along with Dennis Cocking,
will travel to Washington D. C. to attend the ACWA
(Association of California Water Agencies) conference.
They will seek funding of $5M for "continued projects"
from congressional representatives, and also seek support
for renewal of the Tahoe Restoration Act.
0 ACWA will hold a legislative symposium in Sacramento in
March, and is a good way for Board members to learn
about California water issues and federal issues that
impact the District.
BOARD MEMBER STANDING
COMMITTEE REPORTS
EL DORADO COUNTY WATER AGENCY
PURVEYOR REPRESENTATIVE REPORT
BOARD MEMBER REPORTS
e
REGULAR BOARD MEETING MINUTES - FEBRUARY 17, 2011 PAGE - 5
Director Mosbacher thanked staff for providing notice BOARD MEMBER REPORTS
of planned generator testing to the neighbors of the Luther (continued)
Pass Pump Station.
Director Schafer reported on his attendance at the
February 16 ECC (Employee Communications Committee)
meeting.
General Manager: Richard Solbrig reported he prepared
a conference attendance summary, including expenses,
for the joint utility management conference he attended;
President Rise will assign an ad hoc committee to review
the legal service providers rate comparisons; and per
President Rise' request, staff arranged for the film "Poverty
to Prosperity" to be shown at the March 17 Board meeting
and invited District and City staff to attend.
GENERAL MANAGER REPORTS
Clerk of the Board: Kathy Sharp reported there are cur- STAFF REPORTS
rently two travel policies in place - one for Board members
as part of their policy manual, and one for staff. She
recommended that the Board follow the staff policy, which
adheres to recommended reimbursements at the IRS rate.
This item will be placed on a future agenda for consideration.
Assistant General Manager / Engineer: Paul Sciuto reported
that reimbursements to the County for waterline relocation for
erosion control projects will be place on a future agenda for
consideration.
Legal Counsel: Brad Herrema updated the Board on the
Diamond Valley Ranch and Indian Creek temporary water
rights issue. A hearing was held and the request was
approved, with no opposition received.
3:51 P.M. ADJOURNMENT
Dale Rise, Board President
South Tahoe Public Utility District
® ATTEST: c-moi�'1A
Kathy Sha • lerk of the Board
South Tahoe Public Utility District
DATE: 1 '1 - I
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.
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