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06-16-11SOUTH TAHOE PUBLIC UTILITY DISTRICT Richard Solbrig, General Manager Paul Sciuto, Assistant General Manager Dale Rise, President Chris Cefalu, Director BOARD MEMBERS James R. Jones, Director Mary Lou Mosbacher, Vice President Eric W. Schafer, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT JUNE 16, 2011 MINUTES BOARD OF DIRECTORS: President Rise, Directors Cefalu, Jones, Schafer. Director Mosbacher was absent. C STAFF: Solbrig, Sciuto, Sharp, Hughes, Cocking, Bergsohn, Ryan, Hoggatt, P. Lavallee, Whalen, Brown, Hussmann, Frye, Nolan, Curtis, Thiel, Bledsoe, Van Gorden, Attorney Herrema. c Attorney Kvistad participated in closed session via teleconference, from 3:15 - 3:50 p.m. GUEST: Peter Guth Kathy Sharp led the pledge to the flag. Peter Guth relayed his dissatisfaction with the water meter rate structure. Staff will meet with Mr. Guth and review his account. Moved Schafer / Second Jones / Mosbacher Absent / Passed to approve the Consent Calendar as submitted: a. Annual Software Support Costs for Utility Billing Software - Approved payment to Springbrook Software, Inc., for utility billing software maintenance and support in the amount of $20,144.96; ROLL CALL PLEDGE OF ALLEGIANCE COMMENTS FROM THE AUDIENCE CONSENT CALENDAR REGULAR BOARD MEETING MINUTES - JUNE 16, 2011 PAGE - 2 • b. 2011-2012 Bulk Sodium Hypochlorite Supplies - Awarded bid to the lowest responsive, responsible bidder, Olin Corporation, in the estimated amount of $1 18,428.75; c. 2011-2012 Sodium Hypochlorite Supply Drums - Awarded bid to the lowest responsive, responsible bidder, Sierra Chemical, Co., in the estimated amount of $19,710.41; d. 2011-2012 Sodium Hypochlorite Supply Totes - Awarded bid to the lowest responsive, responsible bidder, Sierra Chemical Co., in the estimated amount of $17,936.93; e. ACWA (Association of California Water Agencies) Region 3 Nomination Resolution - Adopted Resolution No. 2894-11 nominating Dennis Cocking to the ACWA Region 3 Board of Directors; f. Millich Ditch Re -Stabilization and Bijou Utility Relocates - Authorized staff to advertise for construction bids; g. Airport Well Arsenic Evaluation Project - Approved the requested fee increase to Purchase Order No. P23721 for additional consultant and pump subcontractor services, in the amount of $16,668; h. Cathodic Protection Installations - Authorized staff to advertise for construction bids; i. Approved Regular Board Meeting Minutes: May 19, 2011; j. Approved Special Board Meeting Minutes: May 24, 2011. CONSENT CALENDAR (continued) ITEMS FOR BOARD ACTION The District's water capacity charge was to be increased by 36% on July 1, 2011, following a six month postponement of the January 1, 2011, scheduled increase. The Board expressed concern that the scheduled increase, in the present economic climate, might adversely impact develop- ment within the District's boundaries by increasing the cost of new development. In response to this concern, staff recom- mended adoption of this Ordinance, which would delay the increase scheduled for July 1, 2011, until January 1, 2012. 0 ORDINANCE NO. 533-11: WATER CAPACITY CHARGES REGULAR BOARD MEETING MINUTES - JUNE 16, 2011 PAGE - 3 e • 0 Moved Cefalu / Second Schafer / Jones Voted No / Mosbacher Absent / Passed to enact Ordinance No. 533-11 postponing the increase in water capacity charges scheduled for July 1, 2011, until January 1, 2012. Director Jones voted no and stated he did not believe the postponement would provide an incentive for building, plus the District needs the revenue, and therefore could not support this Ordinance. The District's sewer capacity charge was to be increased by 16% on July 1, 2011, following a six month postponement of the January 1, 2011, scheduled increase. The Board expressed concern that the scheduled increase, in the present economic climate, might adversely impact develop- ment within the District's boundaries by increasing the costs of new development. In response to this concern, staff recommended the adoption of this Ordinance, which would delay the increase scheduled for July 1, 2011, until January 1, 2012. Moved Schafer / Second Cefalu / Jones Voted No / Mosbacher Absent / Passed to enact Ordinance No. 534-11 postponing the increase in sewer capacity charges scheduled for July 1, 2011, until January 1, 2012. Currently, any new construction over 5,000 sq. ft. is charged a fire capacity fee, and construction under 5,000 sq. ft. is not. New Fire Code provisions that took effect on January 1, 2011, require installation of fire sprinklers in all newly constructed homes and in homes that are remodeled where the area involved constitutes over 50% of the square footage of the home. The District was informed that the Fire Marshalls will require installation of a fire service connection in order to provide water for fire sprinklers. The requirement for installation of a fire service connection would no longer be based on low pressure, but based on the election of a customer to construct or remodel a home. Staff recommended removal of the square footage equation for the purpose of uniformity, and that the Administrative Code be amended to reflect that fire line capacity charges will be assessed whenever the Fire Code requires installation of a fire line. Moved Schafer / Second Jones / Mosbacher Absent / Passed to enact Ordinance No. 535-11 to amend the District's Administrative Code regarding water capacity charges for private fire protection. ORDINANCE NO. 533-11: WATER CAPACITY CHARGES (continued) ORDINANCE NO. 534-11: SEWER CAPACITY CHARGE ORDINANCE NO. 535-11: WATER CAPACITY CHARGES FOR PRIVATE FIRE PROTECTION SERVICE REGULAR BOARD MEETING MINUTES - JUNE 16, 2011 PAGE - 4 0 Work included in this contract primarily includes liner removal and replacement, localized grading, removal or replace- ment of ancillary facilities, and site stabilization at the ERB. 0 c Five bids were received at the May 27 bid opening. Staff evaluated the bids for conformance with bidding require- ments, including the good -faith effort for disadvantaged businesses. The evaluation concluded: 1) The apparent low bid from Erosion Control Applications was incomplete. Four forms required for project funding were not included with the bid. 2) The State Water Resources Control Board is administering the grant for this project, which is funded by the USEPA. Therefore, the project is subject to federal guidelines for contracting, which are clearly stated in the bid documents. Any work that is procured using federal funds for construc- tion, equipment, services and supplies is subject to the requirements stated in the contract documents. The District has included forms in the contract documents. Erosion Control Applications did not complete these forms, so the District cannot confirm their bid accounts for the funding requirements. Staff recommended that the Board reject the bid from Erosion Control Applications as non-responsive for failing to comply with the bid requirements. 3) In addition to the standard contractual items, the funding for this project requires that the bidder comply with requirements for outreach to Disadvantaged Business Enterprises (DBEs). Staff performed a review of the apparent low bid from White Rock Construction. Staff found White Rock's "good -faith effort" to be non-responsive to the requirements of the bid documents. In their bid, White Rock named one subcontractor and two suppliers for trades for which it did not advertise and solicit, as required. Staff recommended that the Board find the bid from White Rock Construction non-responsive for failing to fully comply with the bidding requirements for DBE outreach. 4) As indicated above, this project is funded by the USEPA. Any work that is procured using funds for construction, equipment, services and supplies is subject to the require- ments for DBE outreach, which White Rock Construction failed to do completely. ERB (EMERGENCY RETENTION BASIN) REPLACEMENT PROJECT REGULAR BOARD MEETING MINUTES - JUNE 16, 2011 PAGE - 5 0 Staff recommends that the Board reject the bid from White ERB (EMERGENCY RETENTION Rock Construction as non-responsive for failing to comply BASIN) REPLACEMENT PROJECT with the bid requirements for grant funding. (continued) 5) The bid received from KG Walters Construction Company, Inc., contained three contractual irregularities, two of which were minor. The third irregularity, related to the naming of subcontractors, is more complex. In accor- dance with the California Public Contracting Code, all work in excess of of the total bid is required to be self -performed by KG Walters. By omitting paving from the list of subcon- tractors, KG Walters in effect committed to perform that work itself, because the cost of that portion of the work was reported by KG Walters in their DBE paperwork to be in excess of KG Walters informed staff that they intend to self - perform all work (in excess of/2%) not identified on the list of subcontractors. Staff found two minor irregularities in the DBE good -faith effort documentation, but determined KG Walters generally complied with the bidding require- ments for DBE outreach. Staff recommended that the Board find the minor irregularities described above to be immaterial, waive the immaterial irregularities, and award the project to KG Walters. Moved Schafer / Second Rise / Mosbacher Absent / Passed to: (1) Find bid from Erosion Control Applications non-responsive; (2) Reject bid from Erosion Control Applications; (3) Find bid from White Rock Construction non-responsive; (4) Reject bid from White Rock Construction; (5) Find minor irregularities in bid to be immaterial, waive immaterial irregularities and award project to the lowest responsive, responsible bidder, KG Walters Construction Company, Inc., in the amount of $1,049,600. Six bids were received at the May 20 bid opening. Staff reviewed the bids and determined the first, second, and third bidders were non-responsive in including all specified equipment and requirements. Specifications not met included: specified reel size and hose length required, engine horse- power, component enclosure, and truck wheel base specs. Moved Schafer / Second Jones / Mosbacher Absent / Passed to: (1) Find bid from Dyna -Vac Equipment, Inc., non-responsive; (2) Reject bid from Dyna -Vac Equipment, Inc., (3) Find bid from Jack Doheny Supplies, Inc., (1 of 2) non-responsive; (4) Reject bid from Jack Doheny Supplies, Inc., (5) Find bid from Owen Equipment Sales non-responsive; (6) Reject bid from Owen Equipment Sales; (7) Award bid HYDRO JETTING SEWER CLEANING TRUCK REGULAR BOARD MEETING MINUTES - JUNE 16, 2011 PAGE - 6 to the lowest responsive, responsible bidder, Jack Doheny HYDRO JETTING SEWER Supplies, Inc., (2 of 2) in the amount of $187,350.65, which CLEANING TRUCK includes the trade in value of surplus District hydro truck, (continued) in the amount of $1,000. Moved Cefalu / Second Rise / Mosbacher Absent / PAYMENT OF CLAIMS Passed to approve payment in the amount of $595,999.90 The Board has held two public workshops to discuss the URBAN WATER MANAGEMENT contents of the 2010 Urban Water Management Plan. No PLAN public comments were received. The plan is due to the Department of Water Resources on July 1. The District met its 10% reduction goal. Moved Jones / Second Schafer / Mosbacher Absent / Passed to adopt final 2010 Urban Water Management Plan as per the California Urban Water Management Act. Water and Wastewater Operations Committee: The committee met on June 13. Minutes of the meeting are available upon request. Director Jones reported on the meeting concerning Fazio water that was held with the Bureau of Reclamation. The agency signed a lease agreement for five years and will move their office in September. The move will save $180,000 over the next five years. Director Schafer reviewed an article of interest from the ACWA newsletter concerning a new accountability commit- tee, who is talking about consolidation of special districts. Assistant General Manager / Engineer: Paul Sciuto reported on the progress of developing a shared TRPA employee position dedicated to review and approval of utility district projects, and the goal to combine the various individual MOUs into one that provides consistency to all the utility districts. District Information Officer: Dennis Cocking gave updates on: the state budget veto; the status of various bills that are pending; the District will receive $400,000 from the partnership share of the $1M federal grant procured from the USFS; the annual Tahoe Summit will be hosted by Senator Feinstein and held in Homewood; and the progress of the Tahoe Prosperity Plan development. Chief Financial Officer: Paul Hughes gave updates on: the bond issuance for the Headworks project; and Proposition 84 water conservation funding. BOARD MEMBER STANDING COMMITTEE REPORTS EL DORADO COUNTY WATER AGENCY PURVEYOR REPRESENTATIVE REPORT BOARD MEMBER REPORT STAFF REPORTS REGULAR BOARD MEETING MINUTES - JUNE 16, 2011 PAGE - 7 • 3:05 - 3:15 P.M. MEETING BREAK 3:15 - 3:50 P.M. ADJOURNMENT TO CLOSED SESSION AND RECONVENE TO OPEN SESSION ACTION / REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION Moved Schafer / Second Jones / Mosbacher Absent / Passed to reject the terms of the June 9, 2011, letter received from Sheppard Mullin. 3:50 P.M. ATTEST: 0 Kathy p, Clerk of the Board South Ta oe Public Utility District 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. ADJOURNMENT Ddle Rise, `Board President South Tahoe Public Utility District