04-07-11SOUTH TAHOE PUBLIC UTILITY DISTRICT
Richard Solbrig, General Manager
Paul Sciuto, Assistant General Manager
Dale Rise, President
BOARD MEMBERS Mary Lou Mosbacher, Vice President
Chris Cefalu, Director James R. Jones, Director
Eric W. Schafer, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
APRIL 7, 2011
MINUTES
BOARD OF DIRECTORS: ROLL CALL
President Rise, Directors Cefalu, Jones, Mosbacher, Schafer
Aft STAFF:
Sciuto, Sharp, Hughes, Bledsoe, S. Jones, Cullen, Hoggatt,
Curtis, Cocking, Brown, Van Gorden, Noorda, Sherman,
C. Stanley, Thiel, Bergsohn, Attorney Herrema.
General Manager, Richard Solbrig, participated via
teleconference.
GUESTS:
Mike Dill/Aspen Environmental, Jennifer Roman/ESE,
Shawn Koorn and Kevin Lorentzen/HDR Engineering,
Craig Morgan, Dave Kurtzman.
Eric Schafer led the pledge to the flag. PLEDGE OF ALLEGIANCE
Dave Kurtzman complimented the contractors who are
installing the water tank at Echo View Estates for being
very accommodating and informative.
He also alerted the Board that water meter lids can be
lifted by snowplows, garbage trucks, etc. leaving the pit
exposed, which creates a safety hazard.
COMMENTS FROM THE AUDIENCE
®Consent Items b. (Temporary Water Efficiency Technician), CORRECTIONS TO THE AGENDA OR
j. (Reserve Policy) and I. (Board Policy 2140) were brought CONSENT CALENDAR
forward for discussion prior to Board action.
REGULAR BOARD MEETING MINUTES - APRIL 7, 2011 PAGE - 2
®Moved Mosbacher / Second Cefalu / Passed Unanimously CONSENT CALENDAR
to approve the Consent Calendar as amended:
e
a. Temporary Help for Inspections - Approved contract
with Substitute Personnel or Blue Ribbon for two
temporary employees, in the amount of $45,000;
b. See Consent Items Brought Forward;
c. Temporary Laboratory Intern - Approved contract
with Substitute Personnel or Blue Ribbon for one
temporary summer employee, in the estimated
amount of $1 1,000;
d. Temporary Help for Underground Repair Sewer -
Approved contract with Substitute Personnel or Blue
Ribbon for two temporary employees, in the estimated
amount of $70,000;
e. Temporary Help for Underground Repair Water -
Approved contract with Substitute Personnel or Blue
Ribbon for two temporary employees, in the estimated
amount of $70,000;
f. Luther Pass Pump Station Standby Power Generation
Facility - (1) Approved Change Order No. 6 to Sierra
Nevada Construction, Inc., (2) Added fifteen (15)
calendar days to the contract time;
g. Luther Pass Pump Station Standby Power Generation
Facility - Authorized an increase to Purchase Order
P21709 to update the Spill Prevention Control and
Counter -Measure Plan, in the amount not to exceed
$6,000;
h. Headworks Replacement Project - Certified the
Mitigated Negative Declaration that was prepared
for the Headworks Project in order to comply with
the California Environmental Quality Act;
i. Surplus Vehicles - Authorized Baxtin Management
Group to auction District surplus vehicles;
j. See Consent Items Brought Forward;
C k. Grant Thornton Audit Contract for Fiscal Year
Ending June 30, 2011 - Authorized execution of an
an agreement with Grant Thornton to perform audit
services for Fiscal Year ending June 30, 2011;
REGULAR BOARD MEETING MINUTES - APRIL 7, 2011
I. See Consent Items Brought Forward;
m. Approved Regular Board Meeting Minutes:
March 3, 2011;
n. Approved Regular Board Meeting Minutes:
March 17, 2011.
PAGE - 3
CONSENT CALENDAR
(continued)
CONSENT ITEMS BROUGHT FORWARD FOR SEPARATE DISCUSSION/BOARD ACTION
Director Mosbacher received clarification that the grant
funding for this position was secured.
Moved Schafer / Second Cefalu / Passed Unanimously
to approve contract with Substitute Personnel or Blue
Ribbon for one temporary employee, in the estimated
amount of $20,160.
Director Mosbacher received clarification that the
reserve amount is based on a percentage of revenues
and is a standard amount.
®Moved Schafer / Second Jones / Passed Unanimously to
adopt Resolution No. 2888-11 adopting a new Reserve
Policy and superseding Resolution No. 2801-05 in its
entirety.
Staff reviewed amendments to the policy.
Moved Schafer / Second Jones / Passed Unanimously
to approve amendments to be consistent with the
Employee Training and Travel Policy concerning
reimbursements and use of IRS per diem methods.
TEMPORARY WATER EFFICIENCY
TECHNICIAN
(Consent Item b.)
RESERVE POLICY
(Consent Item j.)
BOARD POLICY 2140: BUSINESS
EXPENSE, CREDIT CARD, VEHICLE USE
& REIMBURSEMENT POLICY
(Consent Item I.)
ITEMS FOR BOARD ACTION
Representatives of Echo Creek Ranch requested an
exception be made to the District's Administrative Code
and allow them to move the location of their backflow
prevention device and water meter.
In conjunction with the construction of new buildings at
Echo Creek Ranch this summer, Echo Creek ranch will install
a private waterline on their property. Based on the topo-
graphy of the site, Echo Creek Ranch wishes to locate its
meter and backflow prevention device on the Echo Creek
Ranch property, away from the property line. Even though
the District requires that a meter be installed at the service
REQUEST TO APPEAR RECEIVED FROM
ECHO CREEK RANCH
REGULAR BOARD MEETING MINUTES - APRIL 7, 2011 PAGE - 4
connection, and a backflow prevention device is to be REQUEST TO APPEAR RECEIVED FROM
installed near the property line or immediately inside the ECHO CREEK RANCH
building being served, staff reported granting the exception (continued
would not expand the District's responsibility or frustrate its
ability to fulfill maintenance, repair or inspection obligations.)
Approval would be conditioned on the understanding that
the District has no responsibility for the Echo Creek Ranch's
private waterline itself. The area is accessible all the time,
including winter time.
Moved Mosbacher / Second Schafer / Passed Unanimously
to grant Echo Creek Ranch an exception to Administrative
Code, Rules and Regulations regarding location of water
meter, backflow prevention device, allowing Echo Creek
Ranch to install meter and device on Echo Creek Ranch's
property.
Moved Schafer / Second Cefalu / Passed Unanimously PAYMENT OF CLAIMS
to approve payment in the amount of $1,289,528.26.
Paul Hughes reported the rate study process was initiated
in November, 2010. Recommendations were developed
based on input received through several public meetings,
workshops, and committee meetings.
Although the rate study includes several years of different
rate adjustments, the direction received from the Board
was to initiate, under the Proposition 218 notice, the first
year recommendation of the study, which was a zero
percent change to the non -metered rates, and the slight
shift in the metered rates between the fixed costs and
consumption costs. That is what was contained in the
Proposition 218 notices that were sent to District customers.
HDR consultants showed a PowerPoint presentation that
covered the details of the rate setting process through
2020. The study included recommendations for three
components: revenue requirements, allocation between
residential and commercial customers, and based on those
two steps, the rate design options.
In summary, future rate adjustments are necessary to
prudently fund O&M and capital needs. Rates are revenue
neutral in 2011/12 ; increases begin in 2013, and are spread
over several years. The Proposition 218 notice that was sent
is only for fiscal year 2012 and has zero percent adjustment;
any future adjustments will be analyzed. Impacts will vary by
individual customer's consumption each quarter. Future rate
recommendations include:
WATER RATE STUDY PRESENTATION
AND DISCUSSION
es
•
REGULAR BOARD MEETING MINUTES - APRIL 7, 2011 PAGE - 5
- Base flat rates on average metered rate; WATER RATE STUDY PRESENTATION
- Revise the rate structure for multi -family complexes AND DISCUSSION
with more than four living units; (continued)
- When data is available, implement tiered/block
rate structures for single-family customers.
HDR consultants will return to attend the Public Budget
Meeting on May 19 to answer any further questions
from the Board or District customers.
No Board action was taken.
Sarah Jones, Water Conservation Specialist, gave a
PowerPoint presentation to update the Board on
planned water conservation activities: rebates funded
by Proposition 50, water -wise house calls will be made
for indoor and outdoor water use, and commercial
incentives. Additional conservation programs will be
developed, pending approval of a grant from
Proposition 84.
No Board action was taken.
WATER CONSERVATION PROGRAM
UPDATE AND PRESENTATION
Director Schafer suggested the District host a community day
to demonstrate the relationship between rates paid and
services provided.
Water and Wastewater Operations Committee: The
committee met on April 4. Minutes of the meeting
are available upon request.
Legal Service Provider Ad Hoc Committee: The com-
mittee met with Attorney Kvistad, who will prepare a
memo to address how counsel can work with staff to
save money.
The agency will meet April 7 and discuss distribution of
funding for various purveyor projects. The District stands
to receive $170,000 in the first round of funding, plus
$52,000 in unspent funds from last year will be rolled -
over for the Keller Tank project. The new leadership at the
agency has made the process much more amenable
than in the past. The next round of funding will be decided
in mid-June, since the agency decided to withhold some
funds in case of an unforeseen event.
CDirector Schafer reported on costs associated with his
attendance at the CASA (California Association of
Sanitation Agencies) conference. He brought back
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD MEMBER AD HOC
COMMITTEE REPORTS
EL DORADO COUNTY WATER AGENCY
PURVEYOR REPRESENTATIVE REPORT
BOARD MEMBER REPORTS
REGULAR BOARD MEETING MINUTES - APRIL 7, 2011 PAGE - 6
®informational materials for staff. Congressman Tom BOARD MEMBER REPORTS
McClintock pledged to provide regulatory assistance (continued)
for the District if ever needed.
•
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President Rise reported on his attendance at the City
Council meeting on April 5. Two points of interest: 1) The
El Dorado County Supervisors are being asked to approve
something related to the Aspens project - he requested
staff look into it to be sure it did not impact the District.
2) As part of the Lake Tahoe Prosperity Plan, an eleven -
member board was to be appointed. The District was not
invited - he requested staff inquire about the selection
process.
Richard Solbriq reported on two items:
1) He participated in a meeting with City staff and
representatives from the Lukins Water Company. Lukins
is seeking a rate increase for system improvements and is
awaiting CPUC approval. If outside funding can be found,
they agreed to listen to any proposals.
2) Talks initiated by TRPA in response to funding issues
resulted in the idea that utility districts around the lake
could cost share a staff planning position. This position
would be designated solely to review and approve water-
line projects and to unify the various MOUs each agency
has individually. This is a positive approach from TRPA that
will allow utility projects to proceed.
GENERAL MANAGER REPORTS
District Information Officer: Dennis Cocking gave an STAFF REPORTS
update on state and federal legislative matters. There are
some 1,200 pieces of legislation introduced for consideration.
ACWA and CASA are monitoring nearly 75 of them. The
budget crisis continues, and if a budget is not agreed to,
the government will shut down on April 8.
Clerk of the Board: Kathy Sharp reported the pricing
information concerning the Granicus web based
agenda and video system, as requested by President
Rise, was summarized in a memo from I/S staff and
placed in Board members mail boxes. If any further
actions are desired, the Board should direct staff
accordingly.
3:55 P.M. ADJOURNMENT
REGULAR BOARD MEETING MINUTES - APRIL 7, 2011 PAGE - 7
ATTEST:
Kathy Sharp/ J rk of the Board
South Tahoe`Public Utility District
0
Dale Rise, Board President
South Tahoe Public Utility District
DATE: L;
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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