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01-19-12SOUTH TAHOE PUBLIC UTILITY DISTRICT Richard Solbriq, General Manager Paul Sciuto, Assistant General Manager Eric W. Schafer, President BOARD MEMBERS James R. Jones, Vice President Chris Cefalu, Director Rand' Vogelvesang, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT JANUARY 19, 2012 MINUTES Kelly Sheehan, Director The Board of Directors of the South Tahoe Public Utility District met in a regular session, January 19, 2012, 2:00 p.m., at the District Office, located at 1275 Meadow Crest Drive, South Lake Tahoe, California. BOARD OF DIRECTORS: ROLL CALL Vice President Jones, Directors Cefalu, Vogelgesang, Sheehan President Schafer was excused for District business; however, he participated in a portion of the meeting via teleconference beginning at 3:45 p.m. STAFF: Solbrig, Sharp, Sciuto, Hughes, Bird, R. Johnson, Cocking, Nolan, Hussmann, P. Lavallee, Ryan, Curtis, Whalen, Brown, Hoggatt, Cullen, Bledsoe, Attorney Herrema GUESTS: John Runnels /Citizens Alliance, Kathryn Reed /Lake Tahoe News, Robert Haen /Thomas Haen Co., Juan Chavez, John Cefalu • Juan Chavez requested a meeting with the person who is in COMMENTS FROM THE charge of water meters to address concerns he has about the AUDIENCE potential for higher bills. He was directed to schedule an appointment with the Customer Service Manager. (2:05 p.m. - Director Cefalu arrived at this point in the meeting.) • Robert Haen, who worked on the District's asphalt patching project, came before the Board to relay his compliments of staff for being professional, easy to deal with, and for doing a good job. REGULAR BOARD MEETING MINUTES - JANUARY 19, 2012 PAGE - 2 Moved Vogelgesang / Second Cefalu / Schafer Excused / CONSENT CALENDAR Passed to approve the Consent Calendar as submitted: a. Resolution for Bureau of Reclamation Water Grant - Adopted Resolution No. 2903 -12 approving grant funding for water meter installation / water conservation program; b. Land Preparation Equipment - Authorized staff to advertise for bids for two pieces of equipment, an offset disk harrow and a dolly -type ejection scraper, that will attach to the District's existing Diamond Valley Ranch tractor; c. C -Line Hydro Request for Proposals (RFP) - Authorized staff to call for a RFP for C -Line Hydro Feasibility Study and possible design; d. Cold Creek Filter Plant and Ralph Tank SEZ Restoration Project - (1) Approved Project Closeout Agreement and Release of Claims for Thomas Haen Company, Inc., and (2) Authorized staff to file a Notice of Completion with the El Dorado County Clerk; e. Headworks Replacement Project - Approved proposal from Carollo Engineers for construction support services, in the amount of $163,915; f. Grizzly Mountain Booster Station - Approved Change Order No. 5 to Thomas Haen Co. Inc., in the amount of $53,445; g. Air Compressor (Trailer Mounted) - (1) Found Holt of California bid to be non - responsive and reject on that basis; (2) Found Volvo Construction Equip & Services to be non - responsive and reject on that basis; (3) Waived minor irregularities of bid from Edward R. Bacon Co.; and (4) Awarded bid to the lowest responsive, responsible bidder, Edward R. Bacon, Co., in the amount of $21,541.38. h. Approved Regular Board Meeting Minutes: January 5, 2012. ITEMS FOR BOARD ACTION Under the Comments from the Audience portion of the January 5, 2012, Board meeting, John Runnels reported on his December 19, 2011, Public Records Request, and stated he thought public interest in disclosure of the mailing addresses for District ratepayers, including email addresses clearly outweighed the ratepayers right to privacy. Since he did not present any information demonstrating a public interest in disclosure of the requested information, staff denied his request pursuant to Government Code Section 6254:16. Mr. Runnels requested this issue be decided upon by a vote of the Board. REQUEST TO APPEAR BEFORE THE BOARD RECEIVED FROM JOHN RUNNELS, CITIZENS ALLIANCE FOR RESPON- SIBLE GOVERNMENT, FOR MAILING ADDRESSES FOR DISTRICT RATEPAYERS REGULAR BOARD MEETING MINUTES - JANUARY 19, 2012 PAGE - 3 Mr. Runnels appeared before the Board and stated his request was made on behalf of the Citizens Alliance for Responsible Government. He stated it was the intention of the group to in- crease public awareness of the District's policies and operations for out of town ratepayers who had no access to local media coverage of STPUD activities, and since the District's public relations was suspect, planned to provide ratepayers with an unbiased report, including a heads up to Proposition 218 notifications, and site information for local internet blogs. He concluded that the public interest in disclosure of ratepayers addresses clearly outweighed the public interest in non - disclosure. The Board discussed the request, and the pros and cons of releasing confidential information. It was the consensus of the Board to postpone making a decision on this request until the next time the full Board was seated (March 15). No Board action was taken. Recent legislative amendments to the Public Contract Code, effective January 1, 2012, limit the amount of retention the District can withhold from a contractor for a capital project to 5% of the total contract amount. However, the retention amount may exceed 5% if the Board, at a properly noticed and normally scheduled public hearing, finds that the project is "substantially complex," and that the nature of the project merits a higher retention amount. The project includes installation of 5,703 feet of 8 -inch water- line on several streets around Wildwood Avenue area. The pro- ject also includes approximately 915 feet of new 8 -inch water line on Bal Bijou Road. The project will replace old, undersized pipes with a significant improvement to fire flows. Staff recommended that the Board designate this project as substantially complex and meriting a retention of 10% based on the following: • The Lake Tahoe basin is a unique area, which, due to high environmental sensitivity, is highly regulated by TRPA (Tahoe Regional Planning Agency); • Based on the limited construction season (May 1 - Oct. 15) within the Lake Tahoe Basin, the project must be timely completed without the benefit of time extension. Vice President Jones opened the public hearing at 2:35 p.m. to receive public comments on the proposed designation of the Wildwood Waterline Replacement Project and Bal Bijou Waterline Project as substantially complex. No public comments were received and the public hearing was closed at 2:35 p.m. REQUEST TO APPEAR BEFORE THE BOARD RECEIVED FROM JOHN RUNNELS, CITIZENS ALLIANCE FOR RESPON- SIBLE GOVERNMENT, FOR MAILING ADDRESSES FOR DISTRICT RATEPAYERS (continued) WILDWOOD WATERLINE REPLACEMENT PROJECT AND BAL BIJOU WATERLINE REPLACEMENT REGULAR BOARD MEETING MINUTES - JANUARY 19, 2012 PAGE - 4 Moved Vogelgesang / Second Sheehan / Schafer Excused / Passed to find that pursuant to the facts described above, the project is substantially complex and requires a 10% retention limit; and authorized staff to advertise for construction bids. Jim Hoggatt gave an update on the activities underway to address the emergency situation. Staff has met with State Parks about the river crossing and to coordinate a repair plan with them. Plans and Specifications will be ready by January 30, 2012, and bids will be requested from three contractors who have their insurance information currently on file with the District. The District has 500 tons of rock in storage that may meet require- ments and help to keep costs down. Work is expected to begin in mid - February. Moved Cefalu / Second Vogelgesang / Schafer Excused / Passed to continue the emergency action declared on January 5, 2012. On January 5, 2012, the Board designated this as an emer- gency project after staff discovered the 12 -inch sewer line approximately 1,000 feet from the intersection of Country Club and Bakersfield was exposed in the Upper Truckee River and the river bank was within a few feet from a manhole. Upon staff's review of the as -built drawings dating back to 1967 and 1968, it was found that the sewer line was concrete encased starting 50 feet from the manhole for the river crossing. Over the years, the river has eroded the river bank and main channel flow changed to within three to five feet of the manhole. As previously described above, amendments to the Public Contract Code limit the amount of retention the District can withhold unless the Board find that this project is "substantially complex," and that the nature of this project merits a higher retention amount. Work is estimated to begin by March 30. It is a high risk project and a higher retention is necessary to cover potential liabilities. Staff recommended that the Board designate this project as substantially complex and meriting a retention of 10% based on the following: • The Lake Tahoe Basin is a unique area, which, due to high environmental sensitivity, is highly regulated by the TRPA; • The majority of the project will take place in the Upper Truckee River; • Damage to the line protection and manhole could potentially result in a rupture of the pipeline at any time with a subsequent discharge of wastewater into the Upper Truckee River. The con- sequences of damage to the pipeline include significant potential WILDWOOD WATERLINE REPLACEMENT PROJECT AND BAL BIJOU WATERLINE REPLACEMENT (con't.) MANHOLE & SEWER LINE PROTECTION OFF COUNTRY CLUB NEAR UPPER TRUCKEE RIVER EMERGENCY PROJECT PUBLIC HEARING: MANHOLE & SEWER LINE PROTECTION OFF COUNTRY CLUB NEAR UPPER TRUCKEE RIVER REGULAR BOARD MEETING MINUTES - JANUARY 19, 2012 PAGE - 5 loss of sewer service to residents in Meyers and a significant risk to water quality in the Upper Truckee River. Because damage to the pipeline is most likely during high flows, a direct repair would likely be infeasible as a potential response when damage occurs; • Timing for construction is a significant concern because of the potential for damage in the next snowmelt season, difficulty in conducting a repair during high flows, and significant conse- quences associated with pipeline damage. Vice President Jones opened the public hearing at 2:45 p.m. to receive public comments on the proposed designation of the Manhole and Sewer Line Protection Project as substantially com- plex. No public comments were received and the public hearing was closed at 2:45 p.m. Moved Cefalu / Second Sheehan / Schafer Excused / Passed to find that pursuant to the facts described above, the project is substantially complex and requires a 10% retention limit. Jim Hoggatt gave a PowerPoint presentation covering the Engineering Department's proposed projects for 2012. In addition to the projects that are currently underway, including those under planning and design that will be built next year, there are a significant number of sewer and water projects planned. He reviewed the process used to prioritize the projects, the proposed priority project list for water and sewer, and the estimated schedule for each. Paul Hughes noted these projects are under consideration as part of the budget process, but have not been approved, only conceptually. The Water and Wastewater Operations Committee have discussed this aggressive $12M program, which will be a big step towards maintaining the District's infrastructure. Moved Vogelgesang / Second Sheehan / Schafer Excused / Passed to approve the priorities. This project will develop a set of criteria for the District to operate under for the future as well as define potential deficiencies in the system and identify projects to mitigate those deficiencies. The District received eight proposals. After reviewing the proposals, three teams were selected to participate in an interview. Based on the rankings, staff selected two of the consultants, Kennedy/ Jenks Consultants and West Yost Associates. Each consulting firm has a specific expertise and abilities that will complement each other and provide a better overall final project. PUBLIC HEARING: MANHOLE & SEWER LINE PROTECTION OFF COUNTRY CLUB NEAR UPPER TRUCKEE RIVER (continued) ENGINEERING DEPART- MENT 2012 PROJECT PRIORITY LIST 2012 WATER SYSTEM OPTIMIZATION PLAN REGULAR BOARD MEETING MINUTES - JANUARY 19, 2012 PAGE - 6 Paul Sciuto explained the benefits that will be derived from splitting the project scope between two consulting firms. He described the project in detail and relayed the long -term benefits that will be received from this critical evaluation of the water system. Moved Vogelgesang / Second Cefalu / Schafer Excused / Passed to approve proposal from selected consultants, Kennedy /Jenks Consultants and West Yost Associates, for engineering services, in the estimated combined amount of $263,679. At the January 5, 2012, regular Board meeting, staff received direction to prepare the necessary ordinances required to postpone for six months, the sewer and water capacity charge increases currently scheduled for January 1, 2012. Staff was also directed to bring this topic, including discussion of the fire line capacity fees, to the Finance Committee for discussion prior to expiration of the six month postponement. Paul Hughes reported the Board has postponed scheduled capacity fee increases four times in the past two years. He pointed out that fees from capacity charges can only be used for infrastructure projects or for debt payment. Moved Cefalu / Second Vogelgesang / Jones Voted No / Schafer Excused / Passed to enact Ordinance No. 537 -12 regarding scheduled increases in water capacity charges and amending Administrative Code Section 3.1.49(e); and Moved Cefalu / Second Vogelgesang /Jones Voted No / Schafer Excused / Passed to enact Ordinance No. 538 -12 setting sewer capacity charges and amending Administrative Code Section 4.5.7. Director Jones voted no due to his opposition to continued delays in capacity fee increases. Moved Vogelgesang / Second Cefalu / Schafer Excused / Passed to approve payment in the amount of $1,184,730.91. 3:25 - 3:35 P.M. Water and Wastewater Operations Committee: The committee met January 16. A tour of the Headworks and Grizzly Mountain Booster Station construction sites was included as part of the meeting. Minutes of the meeting are available upon request. 2012 WATER SYSTEM OPTIMIZATION PLAN (continued) POSTPONEMENT OF SCHEDULED CAPACITY CHARGE INCREASES MEETING BREAK STANDING COMMITTEE REPORTS REGULAR BOARD MEETING MINUTES - JANUARY 19, 2012 PAGE -7 The next meeting will be held on February 10. As the appointed alternate purveyor representative, Director Sheehan indicated interest in attending that meeting to meet staff and learn more about water agency. Legal Counsel: Brad Herrema gave an update regarding the Diamond Valley Ranch 2012 temporary change. The opposition period is underway. The federal government issued a statement of non - opposition to the change. If no opposition is received, it is likely the hearing will be taken off the court's calendar. District Information Officer: Dennis Cocking distributed a summary of the return on investment from the federal legislative advocacy efforts by ENS Resources during the District's 14 -year association with them. He also recapped a significant number of indirect benefits derived through their legislative contacts. Manager of Customer Service: Tim Bledsoe reported the Board received a letter from the owner of the Super 8 Motel regarding a claim submitted concerning alleged damages caused by a water leak on Herbert and Lake Tahoe Blvd. He gave background information surrounding the claim, which was turned in to, and rejected by, the District's insurance company since the claimant did not submit adequate documentation to support the claim. The claimant and the insurance company will continue to work to resolve this matter and are currently negotiating a settlement. 3:45 - 4:05 P.M. (3:45 p.m. - Director Schafer joined the meeting from this point on, via teleconference.) EL DORADO COUNTY WATER AGENCY REPORT STAFF REPORTS ADJOURNMENT TO CLOSED SESSION AND RECONVENE TO OPEN SESSION ACTION / REPORT ON ITEM DISCUSSED DURING CLOSED SESSION a. Pursuant to Government Code Section 54957(a) /Conference with Labor Negotiators Agency Negotiators: Richard Solbrig /General Manager, Nancy Hussmann /Human Resources Director, Paul Hughes /Chief Financial Officer Employee Organization: Management Unit No reportable Board action was taken. b. Pursuant to Government Code Section 54957(a) /Conference with Labor Negotiators Agency Negotiators: Richard Solbrig /General Manager, Nancy Hussmann /Human Resources Director, Paul Hughes /Chief Financial Officer Employee Organization: Stationary Engineers No reportable Board action was taken. REGULAR BOARD MEETING MINUTES - JANUARY 19, 2012 PAGE - 8 ITEM FOR BOARD ACTION Six proposals were received in response to a call for RFPs (Request for Proposals) and after deliberating, staff and the Board's Labor Negotiator Selection Ad Hoc Committee conducted interviews of three candidates. Based on the rankings, the panel agreed unanimously that Austris Rungis, from IEDA, was the best choice to be the chief negotiator in the upcoming Union and Management labor negotiations. Moved Cefalu / Second Vogelgesang / Passed Unanimously to authorize staff to enter into contract with Austris Rungis, IEDA, to provide labor negotiation services, in the amount of $26,500. 4:10 P.M. ATTEST: LABOR NEGOTIATIONS ADJOURNMENT Eric W. Schafer, and President South Tahoe Public Utility District Kathy Share, lerk of the Bo. d South Taho- Public Utility District South Tahoe Public I Utility District Board of Din . rs Speaker Comment Card (One card per item) Please print. Fill out completely and return to the Board Clerk. Agenda Item No. or Subject as Listed on Agenda: ►^u t-� '�"^`�� Title / Affiliation: ((o " Address: Phone: VACt'ix -v*( i I am available to respond to questions. ❑ I wish to testify on this agenda item. ❑ I am in favor of the proposed item. ❑ I am opposed to the proposed item. ❑ Other comments: South Tahoe Public utility District Board of Directors Speaker Comment Card (One card per item) Please print. Fill out completely and return to the Board Clerk. Agenda Item No. or Subject as Listed on Agenda: p Ut b l C (,O Vim-err+ Title / Affiliation: vLci � Address: 1 O �� l (� Phone: \Ai/ � � ' � A/< TA-I-10/ 1 ��1 ❑ I am available to respond to questions. ❑ I wish to testify on this agenda item. ❑ /I am in favor of the proposed item. I am opposed to the proposed item. Other comments: DATE: 1 I 9 -�U� 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.