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07-21-11SOUTH 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 Schafer, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT July 21, 2011 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, ® July 21, 2011, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe, CA BOARD OF DIRECTORS: President Rise, Directors Mosbacher, Jones and Schafer Director Cefalu was absent. STAFF: Solbrig, Sciuto, Whalen, Henderson, Cocking, Bledsoe, Hussmann, Curtis, Frye, C. Skelly, Thiel, Attorney Herrema GUESTS: Eric Havian/Phillips & Cohen, Claude Gunsch, Ken Curtzwiler ROLL CALL Richard Solbrig led the pledge to the flag. PLEDGE OF ALLEGIANCE Moved Schafer / Second Mosbacher/ Cefalu Absent / CONSENT CALENDAR Passed to approve the Consent Calendar as submitted: a. Annual Software Support Costs for Financial/Human Resource Software - Approved payments to SunGard Public Sector for annual maintenance costs, in the amount of $16,828.94, plus tax; REGULAR BOARD MEETING MINUTES - July 21, 2011 PAGE - 2 0 b. Computer Equipment for Fiscal Year 2011/2012 - CONSENT CALENDAR Authorized purchase of budgeted computers and (continued) equipment in the estimated amount of $60,900 (including tax); c. 2011 Grizzly Mountain Waterline Project - Approved Change Order No. 3 to Burdick Excavating Co., Inc., in the amount of $8,987.80; d. Angora Sitework - (1) Approved the Project Closeout Agreement and Release of Claims for K.G. Walters; and (2) Authorized staff to file a Notice of Completion with the EI Dorado County Clerk; e. Unpaid Assessments - Adopted Resolution No. 2896-11, authorizing delinquent accounts be added to the 2011/12 EI Dorado Tax Assessor's Roll; f. 2010 North Apache Booster Station Project - Approved Change Order No. 2 to Thomas Haen Co. Inc., in the amount of $19,521; © g. Approved Special Board Meeting Minutes: July 6, 2011; h. Approved Regular Board Meeting Minutes: July 7, 2011. 0 ITEMS FOR BOARD ACTION Seven bids were opened at the July 20 bid opening. A careful review and analysis of the bids showed minor irregularities, which staff considers being inconsequential and immaterial. Moved Mosbacher / Second Schafer / Cefalu Absent / Passed to find the minor irregularities to be immaterial; waive the minor irregularities; and award the project to the lowest responsive, responsible bidder Blastco, Inc., in the amount of $218,880. Nine banks were solicited and six submitted financing bids. BBVA Compass offered the most attractive terms of 3.65% and a loan term of 20 years. The budget assumed a loan term of 25 years and a higher interest rate. With this low interest rate, the loan can be paid off in 20 years with a savings to the District of approximately $1.9 million dollars. Director Schafer congratulated Paul Hughes, Chief Financial Officer, and in general the staff, for years of practicing strong fiscal responsibility which has resulted in WATER TANK RECOATING PROJECT BORROWING FOR THE HEADWORKS REPLACEMENT PROJECT e REGULAR BOARD MEETING MINUTES - July 21, 2011 PAGE -3 achieving a bond rating as high as the District can go. This has resulted in the attractive terms for the Headworks project financing and savings to our customers. Moved Schafer / Second Jones / Cefalu Absent / Passed to approve Resolution No. 2895-11 authorizing and direct- ing the execution of an installment sale financing of public capital improvements with Public Property Financing Corporation of California and related documents. Moved Jones / Second Schafer / Cefalu Absent / Passed to approve payment in the amount of $1,254,816.29. Water and Wastewater Operations Committee: The committee met on July 18, 2011. Minutes of the meeting are available upon request. Director Jones reported the agency met on July 13, 2011. The next meeting will be in South Lake Tahoe at the District on August 10, 2011. BORROWING FOR THE HEADWORKS REPLACEMENT PROJECT (continued) PAYMENT OF CLAIMS BOARD MEMBER STANDING COMMITTEE REPORTS EL DORADO COUNTY WATER AGENCY REPRESENTATIVE REPORT President Rise suggested that staff look into adding CALSTAR to the benefit package and to bring back infor- emation to the next Board meeting regarding their program information and billing procedures/policies when health insurance companies are involved. He also would like the Board and staff to start thinking of ideas to generate alternative revenue for the District and to develop ideas for the 20 -year plan. He appointed Director Jones and Director Schafer to an ad hoc committee for these purposes. Director Schafer commended Paul Hughes, Chief Financial Officer, for his recent appointment to the California Special District Association Finance Corporation's Board of Directors. BOARD MEMBER REPORTS District Information Officer Dennis Cocking reported on his STAFF REPORT attendance at his first meeting of the Tahoe Prosperity Center Board of Directors on July 15. A handout listing the goals of the Center was circulated and he will provide a copy to the Board. He relayed to the Board that their concept has merit and may have some future grant funding opportunities. 0 2:45 P.M. ADJOURNENT TO CLOSED SESSION REGULAR BOARD MEETING MINUTES - July 21, 2011 PAGE - 4 ® 3:55 P.M. RECONVENED TO REGULAR SESSION ACTION / REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION No reportable Board action. ® No reportable Board action. No reportable Board action. 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(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. Pursuant to Government Code Section 54957/Public Employment Position: Legal Services Provider 3:55 P.M. ADJOURNMENT (� ATTEST: Kathy Sha •, Clerk of the Board By Chris alen, Assistant Board Clerk South Tahoe Public Utility District c7„ Dale Rise, Board President South Tahoe Public Utility District