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01-05-12SOUTH TAHOE PUBLIC UTILITY DISTRICT Richard Solbriv, General Manager Paul Sciuto, Assistant General Manager Eric W. Schafer, President Chris Cefalu, Director BOARD MEMBERS James R. Jones, Vice President Randy Vogelgesang, Director Kelly Sheehan, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT JANUARY 5, 2012 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, January 5, 2012, 2:00 p.m., at the District Office, located at 1275 Meadow Crest Drive, South Lake Tahoe, California. BOARD OF DIRECTORS: President Schafer, Directors Cefalu, Jones, Vogelgesang, Sheehan STAFF: Solbrig, Sharp, Sciuto, Hughes, S. Jones, Hussmann, Nolan, Brown, Cocking, Hoggatt, P. Lavallee, Ryan, Curtis, Attorney Herrema GUESTS: John Runnels, Ken Curtzwiler Eric Schafer led the pledge to the flag. John Runnels reported he submitted a public records request for the mailing addresses of District ratepayers, and his request was denied by staff pursuant to Government Code Section 6254:16. He distributed copies of related correspondence and stated per subsection f. of the Government Code, that he thought the public interest in disclosure of the information clearly outweighs the public interest in non - disclosure since the Citizens Alliance for Responsible Government wishes to inform ratepayers of the District's ongoing operations and policies. He requested this item be included on the agenda for January 19 for the Board to consider. ROLL CALL PLEDGE OF ALLEGIANCE COMMENTS FROM THE AUDIENCE REGULAR BOARD MEETING MINUTES - JANUARY 5, 2012 PAGE - 2 Attorney Herrema stated that the section quoted above was a COMMENTS FROM THE subsection of the Government Code, and read the applicable AUDIENCE code out loud that provides that customers personal contact (continued) information is not discloseable. When Mr. Runnels submitted his request he presented no information demonstrating a public interest in disclosure of customer contact information, so there was no basis for staff to determine that the public interest in dis- closure outweighed the public interest in non - disclosure. This item will be included on the January 19 Board agenda for consideration. Moved Jones / Second Sheehan / Passed Unanimously CONSENT CALENDAR to approve the Consent Calendar as submitted: a. Snowshoe /Millich Slope and Bijou Sewer Relocates - (1) Approved Change Order No. 7 for White Rock Construction, Inc., in the credit amount of <$10,750> which includes the assignment of the contract from White Rock Construction, Inc., to V&C Construction Company, Inc., to perform the one year landscape maintenance for the contract bid amount of $10,000; (2) Approved the Project Closeout Agreement and Release of Claims for White Rock Construction; and (3) Authorized staff to file a Notice of Completion with the El Dorado and Alpine County Clerks; b. ERB Replacement Project - (1) Approved the Project Closeout Agreement and Release of Claims for KG Walters Construction Company, Inc., and (2) Authorized staff to file a Notice of Completion with the El Dorado County Clerk; c. Cold Creek Filter Plant and Ralph Tank SEZ - (1) Approved Change Order No. 2 to Thomas Haen Company, Inc., in the credit amount of <$9,611.82 >, including assignment of the contract from Thomas Haen Company, Inc., to V&C Construction Company, Inc., for the remainder of the work, in the amount of $14,118.05; d. 2012 Washington D.C. Legislative Advocacy - Authorized execution of contract with ENS Resources, Inc., in the amount of $76,994; e. ACWA (Association of California Water Agencies) 2012 - Approved payment to ACWA for membership dues, in the amount of $18,295; REGULAR BOARD MEETING MINUTES - JANUARY 5, 2012 PAGE - 3 f. Water Rate Study Amendment - Approved update to the 2011 Water Rate Study by HDR Engineering, in an amount not to exceed $7,560; g. Approved Regular Board Meeting Minutes: December 1, 2011; h. Approved Regular Board Meeting Minutes: December 15, 2011. President Schafer noted that after discussions pertaining to CASA membership at the December 15 Board meeting, by adoption of the Consent Calendar, have maintained membership in ACWA, as well as a renewal of ENS Resources contract. CONSENT CALENDAR (continued) ITEMS FOR BOARD ACTION Currently, the District's Administrative Code calls for scheduled increases to both water and sewer capacity charges effective January 1, 2012. The scheduled increases to the water and sewer capacity charges per the adopted capacity charge reports are 36% and 16% respectively. This would be fifth out of five adjustments to the water capacity charges and the third out of five adjustment to the sewer capacity charges as recommend- ed in the capacity charge reports. Due to the large increases recommended in the reports, the Board chose to phase in the increases over a five year period. The Board has postponed the scheduled increases twice, in an effort to encourage development within the District. Since then, development has remained relatively flat and the action taken to postpone the increases did not appear to stimulate develop- ment. Staff recommended allowing the scheduled increases to remain effective January 1, 2012, and requested direction from the Board. After significant discussion of the impacts of increasing fees and not increasing fees, it was the consensus of the Board to direct staff to prepare ordinances for the January 19 Board meeting to suspend all water and sewer capacity charges, including fire fire line capacity fees, for six months. The Finance Committee should reconsider this issue before the expiration of the six month postponement. No Board action. Crews discovered an exposed 12 -inch sewer line approximately 1,000 feet from the intersection of Country Club and Bakersfield in the Upper Truckee River, and the river bank was within a few feet from a manhole as well. CALENDAR YEAR 2012 CAPACITY CHARGES MANHOLE AND SEWER LINE PROTECTION OFF COUNTRY CLUB NEAR UPPER TRUCKEE RIVER REGULAR BOARD MEETING MINUTES - JANUARY 5, 2012 PAGE - 4 Jim Hoggatt gave a PowerPoint presentation covering the 1967- MANHOLE AND SEWER 68 as -built drawings and location of the original river crossing and LINE PROTECTION OFF manhole, views of the current manhole location and the pipeline, COUNTRY CLUB NEAR views of the river bank erosion, proposed repair schedule, and UPPER TRUCKEE RIVER extensive permit requirements. (continued) He stated based on the risk assessment provided by Northwest Hydraulics, staff and the consultants are not sure the manhole or sewer line will survive the spring run off without some kind of damage and spill. The manhole could be exposed and damaged, which might result in the line being inoperable /unusable and require further more expensive repairs at that time. Staff recom- mended that repairs commence as soon as the design is complete and the proper permits can be obtained. Without declaration of an emergency, the work may not be able to be completed before the spring 2012 runoff. The Water and Wastewater Operations Committee reviewed this item and are in concurrence with staff's recommendation. Moved Jones / Second Vogelgesang / Passed Unanimously to: (1) Determine an Emergency exists pursuant to Section 1 102 of the Public Contract Code; (2) Determine substantial evidence has been presented, authorizing an exception to be made to Section 22050 of the Public Contract Code, that this emergency will not permit a delay resulting from a competitive solicitation for bids and that this action is necessary to respond to the emergency; (3) Adopt Resolution No. 2902 -12 delegating authority to the General Manager and Assistant General Manager /Engineer to order any action necessary to respond to this emergency; (4) Determine this project is exempt from CEQA; and (5) Approve expenditures, in an amount not to exceed $250,000, necessary to perform the necessary repairs. Moved Cefalu / Second Vogelgesang / Passed Unanimously to approve payment in the amount of $2,449,411.69. Director Schafer pointed out that a memo was distributed with the 2012 Board Appointments, and publicly read them aloud for the record. Water and Wastewater Operations Committee: The committee met January 3. Minutes of the meeting are available upon request. Labor Negotiator Selection Ad Hoc Committee: The committee participated in the interviews of three candidates for a labor negotiator on January 4. PAYMENT OF CLAIMS 2012 BOARD MEMBER APPOINTMENTS STANDING COMMITTEE REPORTS AD HOC COMMITTEE REPORTS REGULAR BOARD MEETING MINUTES - JANUARY 5, 2012 PAGE - 5 Director Jones distributed a report issued by the American Society of Civil Engineers that found that well- maintained water and wastewater infrastructure is critical. Capital spending has not been keeping pace with needs, and if trends continue, negative economic impacts will compound, resulting in financial deficiencies, public safety problems and loss of jobs. Maintaining infrastructure in the first place is less costly in the long -run. Assistant General Manager / Engineer: Paul Sciuto reported on meetings held to discuss potential hydro - electric power generation projects on the C -line export pipeline. Liberty Energy has participated in discussions and have expressed an interest in purchasing power if any can be generated. The District receiv- ed money from the El Dorado County Water Agency to assist with these projects. Chief Financial Officer: Paul Hughes reported on legislation recently passed that eliminates the ability for redevelopment entities to continue to operate in California. The District will have to continue to provide property tax payments each year to the City Redevelopment Agency until they are completely absolved of all their liabilities, which could be through 2035. Clerk of the Board: Kathy Sharp reported that required ethics training for new board members will be scheduled, and will be conducted by the District's legal counsel, Brad Herrema. Grants Coordinator: Lynn Nolan reported that the Integrated Regional Water Management Plan (IRWMP) partnership is going out to RFP for professional services to have the IRWMP updated, which is required by the Department of Water Resources. There will be no fiscal impacts as a planning grant will pay the costs. 3:05 - 3:10 P.M. 3:10 - 3:25 P.M. BOARD MEMBER REPORT STAFF REPORTS MEETING BREAK ADJOURNMENT TO CLOSED SESSION AND RECONVENED TO OPEN SESSION ACTION / REPORT ON ITEM DISCUSSED DURING CLOSED SESSION No reportable Board action. 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. REGULAR BOARD MEETING MINUTES - JANUARY 5, 2012 PAGE - 6 No reportable Board action. No reportable Board action. 3:25 P.M. ATTEST: 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 Virgina 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 54957 /Consideration of Public Employee Appointment - Labor Negotiator ADJOURNMENT Kathy Sharp; Clerk of the Bo d South TahoeL1blic Utility District c W. Schafer, B uth Tahoe Pub President tility District DATE: 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.