04-05-12SOUTH TAHOE PUBLIC UTILITY DISTRICT
Richard Solbri , General Manager
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Eric W. Schafer, President
Chris Cefalu, Director
Paul Sciuto, Assistant General Manager
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
APRIL 5, 2012
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
April 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, Hussmann, Attorney Herrema
C. Stanley, Ryan, Thiel, Bledsoe, Curtis, Cullen, Van Gorden
GUESTS:
Austris Rungis /IEDA
ROLL CALL
Moved Cefalu/ Second Vogelgesang / Passed Unanimously CONSENT CALENDAR
to approve the Consent Calendar as submitted:
a. Temporary Help for Underground Repair Water - Approved
contract with Substitute Personnel or Blue Ribbon for two
temporary employees, in the estimated amount of $50,000;
b. Temporary Help for Underground Repair Sewer - Approved
contract with Substitute Personnel or Blue Ribbon for two
temporary employees, in the estimated amount of $50,000;
c. Temporary Help for Inspections - Approved contract with
Substitute Personnel or Blue Ribbon for two temporary
employees, in the estimated amount of $45,000;
REGULAR BOARD MEETING MINUTES - APRIL 5, 2012
PAGE - 2
d. 2011 Cathodic Protection Improvement Project - Approved
Change Order No. 1 to Exaro Technologies Corp., in the
amount of $1,270.92;
e. Approved Regular Board Meeting Minutes:
March 1, 2012;
f. Approved Regular Board Meeting Minutes:
March 15, 2012.
CONSENT CALENDAR
(continued)
ITEMS FOR BOARD ACTION
Six bids were received at the March 20 bid opening. After a
careful review of all bids, staff found the apparent low bid,
received from Doug Veerkamp General Engineering, Inc.,
(Veerkamp) was incomplete. The form required for project
funding was not included with the bid as required. In addition,
Veerkamp did not comply with the requirements for DBE
(Disadvantage Business Enterprise) outreach. Staff recommend-
ed that the Board find the bid from Veerkamp non - responsive for
failing to complete required forms. Staff reported that Veerkamp
acknowledged the bid contained omissions and would not protest
its rejection.
The second low bid, received from Thomas Haen Company,
contained no bid irregularities. Staff reviewed the DBE submission
and found minor irregularities, but it generally complied with
bidding requirements. Staff recommended that the Board find
the minor irregularities to be immaterial, and award the project
to Thomas Haen Company.
Moved Cefalu / Second Sheehan / Passed Unanimously to find
bid from Veerkamp to be non - responsive and reject the bid.
Moved Vogelgesang / Second Jones / Passed Unanimously to
find minor irregularities in bid received from Thomas Haen Com-
pany to be immaterial, and to waive immaterial irregularities;
and to award project to the lowest responsive, responsible
bidder, Thomas Haen Company, in the amount of $1,892,462.58.
In response to the emergency declaration, staff has pursued
permit acquisition, completed the design, and solicited bids
from three contractors. Due to problems encountered with
obtaining necessary permits from Lahontan and the Army Corp
of Engineers, the window of opportunity to perform work in the
river has passed since flows in the river have exceeded allowable
levels (it must be flowing at 50 ccs or less for work in the river).
Staff requested the emergency be continued to allow time to
terminate the contract with Thomas Haen Company and reim-
2012 WILDWOOD WATER-
LINE REPLACEMENT AND
BAL BIJOU WATERLINE
REPLACEMENT PROJECT
UPPER TRUCKEE RIVER
SEWER LINE PROTECTION
EMERGENCY PROJECT
REGULAR BOARD MEETING MINUTES - APRIL 5, 2012 PAGE - 3
burse them for costs incurred to date. The emergency is expect- UPPER TRUCKEE RIVER
ed to be terminated at the April 19 Board meeting. Staff will SEWER LINE PROTECTION
continue to pursue permits, go through the formal bidding pro- EMERGENCY PROJECT
cedures, and hopefully complete the project by the end of the (continued)
summer.
Moved Jones / Second Sheehan / Passed Unanimously to
continue the emergency action declared on January 5, 2012.
Moved Cefalu / Second Jones / Passed Unanimously to approve PAYMENT OF CLAIMS
payment in the amount of $1,421,807.05.
Water and Wastewater Operations Committee: The committee STANDING COMMITTEE
met April 2. Minutes of the meeting are available upon request. REPORTS
Manager of Customer Service: Tim Bledsoe reported on the
annual Technical Advisory Committee meeting held April 4,
which was attended by four local contractors /plumbers. The
main topic was the need to bring awareness of the District's
rebate and conservation programs to customers.
The next meeting is April 11. Staff will attend to discuss the
District's 2012 -13 project funding requests, and the match for
the IRWMP (Integrated Regional Water Management Plan).
STAFF REPORT
EL DORADO COUNTY
WATER AGENCY REPORT
Richard Solbriq reported on the District's Outreach presentation GENERAL MANAGER
to the Kiwanis Club. Topics of discussion included: the Proposition REPORTS
218 process, water meter rates, and the Lukins water system. The
presentation was well received and the District was complement-
ed for the overall job it is doing.
Chief Financial Officer: Paul Hughes reported on the Fire Preven- STAFF REPORTS
tion Partnership grant application process .
He also reported that the District's credit ratings were reviewed
by Fitch and Standard & Poor's. A rating of AA+ was received
from Fitch on both the water and sewer funds. Standard & Poor's
gave an AA- rating on the water side, and increased the sewer
side to a AA. The rating agencies were impressed that the District
did not pull from reserves to cover budget shortfalls, plus the
District's intention to raise rates was viewed as favorable since it
sent a strong message that the District wants to keep its revenue
intact.
Assistant General Manager /Engineer: Paul Sciuto reported that
Liberty Energy has asked the CPUC for a 10% rate increase. In
the past, large energy users have joined forces and intervened
in rate setting with the goal of reducing rates to those customers.
REGULAR BOARD MEETING MINUTES - APRIL 5, 2012 PAGE - 4
Heavenly requested the District intervene with them and all their
properties. Staff requested additional information and will
communicate it to the Board upon its receipt.
STAFF REPORTS
(continued)
2:40 P.M. ADJOURNMENT TO
CLOSED SESSION
ACTION / REPORT ON ITEM DISCUSSED DURING CLOSED SESSION
a. 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
No reportable Board action was taken.
b. 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.
No reportable Board action was taken.
c. 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
d. 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.
e. Pursuant to Government Code Section 54957 /Public Employee Evaluation
Unrepresented Employee Position: General Manager
No reportable Board action was taken.
4:30 P.M.
RECONVENED TO OPEN
SESSION AND
ADJOURNMENT
REGULAR BOARD MEETING MINUTES - APRIL 5, 2012 PAGE - 5
Eric W. Schafe'r, Bo d President
South Tahoe Public Utility District
ATTEST:
Kathy Sharp erk of the Bo
South Taho ublic Utility District
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