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02-02-12SOUTH TAHOE PUBLIC UTILITY DISTRICT Richard Solbrig, General Manager Paul Sciuto, Assistant General Manager Eric W. Schafer, President BOARD MEMBERS James R. Jones, Vice President Chris Cefalu, Director Randy Vowelvesanq, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT FEBRUARY 2, 2012 MINUTES Kelly Sheehan, Director The Board of Directors of the South Tahoe Public Utility District met in a regular session, February 2, 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, Hughes, Hoggatt, C. Stanley, Hussmann, Cocking, Curtis, Cullen, Attorney Herrema ROLL CALL ITEMS FOR BOARD ACTION Recent changes to the Public Contract Code limit the amount of retention proceeds the District may withhold from a contrac- tor for a public works project to 5 percent of the total contract amount. These changes reduce the flexibility and leverage the District has in withholding payments (previously 10 percent) to ensure work is performed in a satisfactory and timely manner, as well as withholding funds in the event a general contractor's sub - contractors or material suppliers have not been paid. The Public Contract Code has provisions to set retention proceeds on projects that are deemed to be "substantially complex" in excess of the 5 percent of the total contract amount. However, the code does not define the characteristics of a project that should be considered "substantially complex." This resolution RESOLUTION 2904 -12: ESTABLISHING CRITERIA FOR DETERMINING WHETHER A PUBLIC WORKS PROJECT IS "SUBSTAN- TIALLY COMPLEX" REGULAR BOARD MEETING MINUTES - FEBRUARY 2, 2012 PAGE - 2 provides criteria to be used by the District to determine whether a capital project is substantially complex, pursuant to Public Contract Code 7201(b)(4). Moved Jones / Second Cefalu / Vogelgesang Absent /Passed to adopt Resolution No. 2904 -12. Jim Hoggatt gave an update on the activities underway to address the emergency situation. Staff has received, and are reviewing, the final design and the last section of specifications. A mandatory pre -bid will be held February 6 with the three con- tractors who had approved insurance on file with the District. Bids are due February 14. Staff met with all the required agencies, and permits have been filed as needed. There has been no opposition to the project to date. This is an important project as the sewer line serves 450 homes,] 3 businesses, and the Meyers Magnet School. The risk of a spill could be high, so every effort is being made to do the repairs before the flows in the river escalate. The engineers estimate for the project is $150,000 - $200,000. Moved Jones / Second Cefalu / Vogelgesang Absent / Passed to continue the emergency action declared on January 5, 2012. Moved Cefalu / Second Sheehan / Vogelgesang Absent / Passed to approve payment in the amount of $1 ,740,1 82.31. The Union MOU (Memorandum of Understanding) has a provision that a compensation study must be performed prior to the begin- ning of new contract negotiations. The MOU expires June 20, 2012, and preliminary discussions regarding the negotiations have begun. Koff and Associates conducted a compensation study for the District in 2007, and therefore already has knowledge about the District operations, thus making it more efficient to conduct another compensation study in 2012. Additionally, if the District does not settle negotiations with all parties, it must be prepared to meet the requirements of AB 646 (fact- finding). Moved Jones / Second Cefalu / Vogelgesang Absent / Passed to authorize staff to enter into a contract with Koff and Associates to conduct a compensation study, in an amount not to exceed $19,000. President Schafer reported on his attendance at the CASA (California Association of Sanitation Agencies) conference held January 18 -20. He distributed a written report summarizing information he received, and reported on the same. Conference costs incurred totaled $1,407.73. RESOLUTION 2904 -12: ESTABLISHING CRITERIA FOR DETERMINING WHETHER A PUBLIC WORKS PROJECT IS "SUBSTAN- TIALLY COMPLEX" (con't.) MANHOLE & SEWER LINE PROTECTION OFF COUNTRY CLUB NEAR UPPER TRUCKEE RIVER EMERGENCY PROJECT PAYMENT OF CLAIMS ADDENDUM NO. 1: CONSULTANT FOR COMPENSATION STUDY BOARD MEMBER REPORTS REGULAR BOARD MEETING MINUTES - FEBRUARY 2, 2012 PAGE - 3 President Schafer requested that Board members submit their travel and training budget requests to him by February 16 so they can be considered during the budget process. The next meeting will be held on February 8. Directors Jones and Sheehan will attend. Richard Solbriq reported on two items: 1) The annual outreach letter to local service organizations has been sent offering to review key District issues at their club meetings. A presentation will be given to the Kiwanis in March. 2) Staff has met with the El Dorado Grand Jury concerning inquiries into: the water meter process and rate structure, the District's policy regarding the Lukins Water Company, the series of articles in the newspaper about the District's budget, and the hiring process at the District concerning spouses and relatives. The Grand Jury has asked El Dorado County for additional funding to continue their work. It was reported members of the grand jury were video - taping public employees in places they weren't supposed to be (mini- marts, grocery stores, etc.). Legal Counsel: Brad Herrema reported on two items: 1) A motion was filed in Nevada federal district court similar to the one approving a 2010 temporary change in the exercise of Diamond Valley water rights, such that freshwater may be sent to Indian Creek Reservoir to raise reservoir levels instead of using it for irrigation. The opposition and protest period passed with no opposition. The Federal Government issued a statement of no opposition. The hearing has been removed from the calendar since there was no opposition. 2) A hearing is set February 3 concerning the Yorba Linda water inverse condemnation case on the motion that a public entity cannot be held liable when extraordinary catastrophes occur. If they do not prevail, trial date is still set for March. BOARD MEMBER REPORTS (continued) EL DORADO COUNTY WATER AGENCY REPORT GENERAL MANAGER REPORTS STAFF REPORTS District Information Officer: Dennis Cocking reported on two items: 1) He distributed a summary of the Helping Hands Outreach (H20) Program that was developed in 1998. Since its inception, it has pro- vided close to $50,000 in assistance. The program is supported by customers who live outside of the basin (70% of funding) and within the basin (30% of funding). 2) He distributed a summary of a Black Veach Study that documents that the District's combined sewer and water rates were among the 10 lowest in the state, and are well below average for the 50 largest U.S. Cities. Chief Financial Officer: Paul Hughes gave an update on the status of the City's redevelopment agency. It was dissolved and a successor REGULAR BOARD MEETING MINUTES - FEBRUARY 2, 2012 PAGE - 4 agency was appointed. Hal Cole was appointed to an oversight STAFF REPORTS committee to oversee the successor agency. The District will also (continued) have some oversight and staff will meet with the city to learn more. 2:40 - 3:20 P.M. ADJOURNMENT TO CLOSED SESSION AND RECONVENED 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: Austris Rungis /IEDA, 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: Austris Rungis /IEDA, Richard Solbrig /General Manager, Nancy Hussmann /Human Resources Director, Paul Hughes /Chief Financial Officer Employee Organization: Stationary Engineers No reportable Board action was taken. c. Pursuant to Government Code Section 54957 /Public Employee Evaluation Unrepresented Employee Position: General Manager No reportable Board action was taken. 3:20 P.M. ATTEST: Eric W. Schafer, Bo 0d President ADJOURNMENT South Tahoe Public Utility District Kathy Sharp, rk of the Bo rd South Tahoe ublic Utility District DATE: -A-1 "co. 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.