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05-05-11SOUTH TAHOE PUBLIC UTILITY DISTRICT Richard Solbrig, General Manager Paul Sciuto, Assistant General Manager Dale Rise, President Chris Cefalu, Director BOARD MEMBERS Mary Lou Mosbacher, Vice President James R. Jones, Director Eric W. Schafer, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT MAY 5, 2011 MINUTES BOARD OF DIRECTORS: ROLL CALL President Rise, Directors Cefalu, Jones, Mosbacher, Schafer TAF F: (brig, Sharp, Sciuto, Hughes, Hoggatt, C. Stanley, Thiel, Ryan, Bledsoe, Cullen, Johnson, Curtis, Attorney Kvistad GUESTS: Rob Brueck/Hauge Brueck Engineering, Claude Gunsch, Lynne Paulson, Patricia Handal, Virginia Mahacek, John Runnels Chris Stanley led the pledge to the flag. PLEDGE OF ALLEGIANCE Patricia Handal relayed her understanding of water meter rates and water usage. She received misinformation that led her to believe she would be paying for unused portions of water. Staff explained the fixed rate portion of the bill, and the consumption rate portion of the bill. COMMENTS FROM THE AUDIENCE Moved Mosbacher / Second Schafer/ Passed Unanimously CONSENT CALENDAR to approve the Consent Calendar as submitted: a. MXU's and Water Meters - (1) Authorized exception to bidding procedures as outlined in the Purchasing Policy for a sole source purchase of standardized supplies; and (2) Authorized purchase of Sensus MXU's and meters from Western Nevada Supply, in the amount of $120,000 including tax and freight; REGULAR BOARD MEETING MINUTES - MAY 5, 2011 PAGE - 2 C. Secondary Clarifier #1 Drive - (1) Authorized exception CONSENT CALENDAR to bidding procedures as outlined in the Purchasing (continued) Policy for a sole source purchase, and requirement for compatibility with existing equipment; and (2) Approved purchase of one secondary clarifier drive from OVIVO Water Technologies, in the amount of $46,667; c. 2011 Filter Rehabilitation Project - Approved Change Order No. 1 to ERS Industrial Services, in the amount of $13,669.68; d. Headworks Replacement Project Phase 2 - Authorized payment to the Tahoe Regional Planning Agency in the amount of $32,019.50 for water quality mitigation fee; e. BMP and SEZ Restoration Project - Authorized payment to Liberty Energy in the amount of $30,282 for utility line extension; f. Headworks Phase 2 Financing - Authorized Chief Financial Officer to execute an engagement letter with Bartle Wells Associates, in the amount of $18,000; 0. Approved Regular Board Meeting Minutes: April 7, 2011. ITEM FOR BOARD ACTION Moved Schafer / Second Cefalu / Passed Unanimously PAYMENT OF CLAIMS to approve payment in the amount of $1,416,290.85. The agency met May 4. Topics of discussion included next year's budget and saving ideas. The agency will meet w/Bureau of Reclamation regarding Fazio water to obtain additional water from Folsom Lake. EL DORADO COUNTY WATER AGENCY PURVEYOR REPRESENTATIVE REPORT ITEMS FOR BOARD ACTION 2:30 P.M. Public Meeting John Thiel gave a PowerPoint presentation covering the purpose and benefits of the project. Rob Brueck/ Hauge Brueck Engineering, reviewed what was done to satisfy the CEQA process. He also reviewed site lection and the revised site plan, and comments re- eived on the project including responses for each. GRIZZLY MOUNTAIN BOOSTER STATION REGULAR BOARD MEETING MINUTES - MAY 5, 2011 PAGE - 3 ailohn Thiel reviewed the schedule, and opened the hear- GRIZZLY MOUNTAIN BOOSTER STATION Ilfg to receive additional public comments. (continued) Lynne Paulson relayed her appreciation for the additional meetings and communications that have occurred since the April 21 Board Meeting. She requested continued corn- munications, especially concerning potential operational noise levels. She also recommended policies be reviewed so conflicts encountered can be avoided on future projects. Virginia Mahacek voiced her concerns, which included: - The short notice period and lack of solicitation of public input on the project; - The notice was not postmarked until a week after the official comment period, which made it difficult to pro- vide comments; - The neighborhood meeting was noticed the day of the meeting (again, too short of notice); - Her comments were not included or responded to in the CEQA document, even though she submitted them in time (regarding grading and drainage). Additional meetings will be held with neighbors to discuss etails. Moved Mosbacher / Second Schafer / Passed Unanimously to: (1) Adopt the Mitigated Negative Declaration of Negative Environmental Impact; (2) Approve the project for implementation; and (3) Authorize the filing of a Notice of Determination with the State Clearinghouse and El Dorado County. President Rise reported he and Director Cefalu met as the Legal Service Provider Ad Hoc Committee and explained their recommendation to solicit RFPs (Request for Proposals) for legal service providers. President Rise also relayed concerns with Brownstein Hyatt Farber Schreck's (BHFS) capabilities to meet the District's changing needs, and dissatisfaction with some performance issues. Attorney Kvistad reviewed BHFS written report with the Board and responded to comments received. He also summarized services provided by BHFS and related experience, competitive rates, history with the District, cost saving measures, and value of services provided. Cirecfor Mosbacher indicated her satisfaction that the report prepared by Attorney Kvistad was sufficient and answered all questions. LEGAL SERVICE PROVIDERS REGULAR BOARD MEETING MINUTES - MAY 5, 2011 PAGE - 4 serector Jones and Schafer voiced their opposition to LEGAL SERVICE PROVIDERS oliciting RFPs, and further voiced their satisfaction with (continued) the performance of Attorneys Kvistad, Herrema, and BHFS. The cost comparison survey showed legal fees are within range of others. President Rise wished to relay additional information in connection with Closed Session Item a. (J -M Manufac- turing litigation) and continued the discussion until afterwards. No Board action. Director Schafer reported on his attendance at the CASA (California Association of Sanitation Agencies) conference held April 27-29. Topics included: contracts and respon- sible bidders, workers' comp and employment law, a student education program, biosolids and costs related to disposal. The cost to attend the conference totaled $1,172. President Rise reported on his attendance at the CSDA (California Special Districts Association Conference) held May 3-4. One highlight was the legal counsel from East Say MUD. He suggested staff download their policies to use as they relate to the District. There were also discus- sions on transparency and different methods to reach the public. He reviewed some changes in the law that may be on the horizon. He will distribute a written report in two weeks. BOARD MEMBER REPORTS Richard Solbrig reported he is improving and thanked GENERAL MANAGER REPORT staff and the Board for their support during this time. President Rise pointed out customers were having difficulty determining their APN numbers as required to file a Proposition 218 notice, and suggested they be included next time. Assistant General Manager/Engineer: Paul Sciuto reported a few new water meters will be installed as part of the Grizzly Mountain waterline project; however, there were no new water meter projects scheduled for this year. President Rise suggested the District should supply water meters and meter pits for new construction to maintain consistency among customers. The customer dikould be responsible for installation costs. Staff estimated lbeoing this would result in a $200,000 change order, and will require further definition and direction by the Board. BOARD REPORT STAFF REPORTS REGULAR BOARD MEETING MINUTES - MAY 5, 2011 PAGE - 5 C:05 - 4:50 P.M. ADJOURNMENT TO CLOSED SESSION AND RECONVENE TO OPEN SESSION ACTION / REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION No reportable Board action. No reportable Board action. 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 ED CV06-0055-GW, United States District Court for the Central District of California Pursuant to Government Code Section 54956.9(a)/Conference with Legal Counsel - Existing Litigation re: Los Angeles County Superior Court Case No. BC459943, State of Nevada, et al. v. J -M Manufacturing, et al. ITEMS FOR BOARD ACTION After the discussion in connection with Closed Session Item a. (J -M Manufacturing litigation), President Rise removed this item from consideration and from the agenda. No Board action. LEGAL SERVICE PROVIDERS 4:55 P.M. ADJOURNMENT CTrEST: Kathy Shar erk of the ioard South Taho- Public Utility District Dale Rise, Board President South Tahoe Public Utility District - - DATE: t 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. tquita, MaKa.ce-1, (1-1( Grtlzs-LtAMNA. ti6erAkcir.) etActkLcr/vt&