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07/05/20120 0 0 SOUTH TAHOE PUBLIC UTILITY DISTRICT Richard Solbri•, General Mana•er Eric W. Pr Schafer, r ess ident t Chris Cefalu, Director BOARD MEMBERS Paul Sciuto, Assistant General Mana•er James R. Jones, Vice President Randy Vo elaesang, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT JULY 5, 2012 MINUTES Kell Sheehan, Director The Board of Directors of the South Tahoe Public Utility District met in a regular session, July 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, Cocking, Curtis, B. Cuevas, Thiel, Bledsoe, Van Gorden, Hussmann, Nolan, Bergsohn, Attorney Kvistad GUESTS: Chris Westlake /Pacific West Communities, Carrie Nickel, Austris Rungis /IDEA, Nancy Kerry/City of South Lake Tahoe, Graham and Jill Sanders (participated via teleconference) ROLL CALL Moved Jones / Second Cefalu / Passed Unanimously to approve CONSENT CALENDAR the Consent Calendar as submitted: a. California Department of Water Resources: Local Groundwater Assistance (LGA) Grant Funding - (1) Adopted Resolution No. 2913 -12 to apply for a well destruction program; and (2) Adopted Resolution No. 2914 -12 to apply for LGA funding for a revision /update to the current groundwater management plan; REGULAR BOARD MEETING MINUTES - JULY 5, 2012 PAGE - 2 0 b. 201 1 Grizzly Mountain Booster Station Project - (1) Approved the 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; c c. 2011 Water Tank Recoating Project - Approved Change Order No. 2 to Blastco, Inc., in the credit amount of $2,100; d. Upper Truckee River Sewer Line Protection Project - Authorized an increase to Purchase Order P24808 for added engineering and permitting services, in the amount of $19,961; e. Diamond Valley Ranch Irrigation Improvements Project - Approved a land use agreement enabling the State of California Department of Water Resources use of a 30 -foot by 30 -foot portion of District property for the installation, operation, and maintenance of a California irrigation management information system weather station on Diamond Valley Ranch property; f. Approved Regular Board Meeting Minutes: June 7, 2012. CONSENT CALENDAR (continued) ITEMS FOR BOARD ACTION Carrie Nickel came before the Board to request waiver of a portion of the fees charged for the fire line service that District crews installed at a residence she is constructing. She reviewed the work order and gave examples to support her assertion. Ms. Nickel also conveyed that the District's fee structures and rate of increases are unreasonable, inconsistent with others, and do not take economic conditions into consideration. Staff reported the fees are charged on a time and materials basis, and a standard size crew was sent to install the service. The est- imate provided to Ms. Nickel was exceeded due to the rocky conditions encountered during the excavation necessary to connect to the line across the street from the residence. Director Vogelgesang recused himself from participation in this item due to a potential conflict of interest and left the room - he was the engineer for the residence under discussion. Moved Jones / Second Sheehan / Vogelgesang Recused / Passed to deny the request to waive a portion of fees incurred. REQUEST TO APPEAR BEFORE THE BOARD RECEIVED FROM CARRIE NICKEL RE: FIRE LINE SERVICE INSTALLATION COSTS REGULAR BOARD MEETING MINUTES - JULY 5, 2012 PAGE - 3 0 Graham and Jill Sanders participated in discussion of this item via teleconference. c 0 Tim Bledsoe reported the Sanders own a home that is for sale and the water was turned off. The District's Administrative Code provides that once a connection is made into the water or sewer system, the customer is placed into the billing cycle and billed quarterly. Mr. Sanders stated he requested that a meter be installed several years ago and was under the impression that if no water was used, there would be no charges incurred. He requested the quarterly service charge be waived. Staff and Board members clarified the quarterly bill was based on being connected to the District's service and as a result, a flat rate fee is billed. They explained that even if a meter had been installed the quarterly bill would still contain the flat rate fee. The only time billing is ceased is when there is a change of ownership. Moved Cefalu / Second Schafer / Passed Unanimously to adhere to the Administrative Code and continue billing until ownership changes. This sewer line protection project includes the construction of three riffle grade control structures along the channel of the Upper Truckee River to restore, cover over the sewer pipeline, and approximately 85 lineal feet of vegetated rock slope stabilization along the east bank of the Upper Truckee River to protect the sewer manhole. Plans, specifications and estimates of probable costs are being prepared by staff with assistance from Northwest Hydraulic Consultants. As provided by Resolution No. 2904 -12, staff recommended that this capital project be deemed "substantially complex" meriting a retention of 10% of the total contract amount based on the following: • The project is subject to the conditions described in the criteria (a) (d) (e) (f) and (g) in that the channel and bank stabilization work cannot be tested until the project is substantially complete; construction within the Upper Truckee River is subject to special regulatory requirements and permit conditions; the work site is located within an environmentally sensitive area; and timing of construction is a significant concern due to potential damage from winter storm flows, difficulty in performing repairs during high flows and significant consequences associated with pipeline damage. REQUEST TO APPEAR BEFORE THE BOARD RECEIVED FROM GRAHAM AND JILL SANDERS PUBLIC HEARING: UPPER TRUCKEE RIVER SEWER LINE PROTECTION PROJECT REGULAR BOARD MEETING MINUTES - JULY 5, 2012 PAGE - 4 © President Schafer opened the Public Hearing at 2:30 p.m. to receive public comments on the proposed designation. No public comments were received and the Public Hearing was closed at 2:33 p.m. 0 Moved Vogelgesang / Second Jones / Passed Unanimously to find pursuant to the facts described above, the project is sub- stantially complex and requires a 10% retention limit; and authorized staff to advertise for construction bids. The Tahoe Transportation District has proposed and is in the process of soliciting community comment for a project in Loop Road area that could potentially require the District to move water and wastewater infrastructure at a significant cost. This item was briefly discussed at the June 21 Board meeting with no Board action taken. In order for staff to effectively com- municate the District's concerns and /or position during the community input portion of the project, it was included on the July 5 agenda for Board direction. Nancy Kerry/City of South Lake Tahoe, Board members and staff discussed the options under consideration. It was the consensus of the Board to direct staff to ensure any option presented includes a clause that states costs for utility relocation will be covered as part of the project and not passed on to the District ratepayers. No Board action. PUBLIC HEARING: UPPER TRUCKEE RIVER SEWER LINE PROTECTION PROJECT (continued) BOARD POSITION ON U.S. 50 /SOUTH SHORE COMMUNITY REVITALIZATION PROJECT The Aspens at South Lake is a proposed 48 unit low- income THE ASPENS AT SOUTH housing project under the developer /owner Pacific West Com- LAKE munities. The project is expected to be funded through a variety of funding sources, and the City of South Lake Tahoe has secured a State Home Loan in the project's name. The developer did not receive a source of funding that was hoped for, and must reapply to obtain the balance of the required financing before the project can begin. In the event the project moves forward, the developer has proposed to pay the District in full for the estimated $580,000 sewer capacity charges. They requested deferral of water capacity charges, in the estimated amount of $550,000, with a repayment term of 55 years at 3% interest. Other terms include: • Loan payments would be made from residual receipts (gross revenues less operating expenses); • • 0 REGULAR BOARD MEETING MINUTES - JULY 5, 2012 PAGE - 5 • Annual payment of $10,000 first in line to receive residual THE ASPENS AT SOUTH receipts; LAKE • Annual pro -rata share of any other residual receipts available; (continued) • Principal loan balance would have a due upon sale clause in the event the project was sold. Residual receipts are not guaranteed. If the housing project is not profitable, the District will not receive payment towards the deferred water capacity charges. There is a risk that the District will not receive the water capacity charges. This item was presented and discussed at the June 21 Board meeting and staff was directed to prepare a letter of commit- ment for Board action. A more detailed fee deferral agreement will be drafted following a formal award of the tax credit financing to the project. The terms of the commitment were discussed, as well as the pros and cons of the deferral of the water impact fees. Moved Schafer / Second Cefalu / Jones Voted No / Passed to authorize Board President to sign a commitment letter approving deferral of water impact fees. Director Jones voted no because he protested loaning public funds to subsidize a project, and is concerned about the precedent it could set. At the June 21 Board meeting, staff received direction to pre- POSTPONEMENT OF pare the necessary ordinances required to postpone for six SCHEDULED CAPACITY months the capacity charge increases scheduled for July 1, 2012. CHARGE INCREASES Staff was also directed to evaluate the methodology of the fire line capacity charge, and bring forward a recommendation. It was also suggested that the capacity charge ordinances be revised, removing the automatic six month incremental language as currently included in the ordinances. Consultants from Brown and Caldwell will revisit the fire line methodology issue and their recommendation will be presented to the full Board when it becomes available. Moved Cefalu / Second Sheehan / Jones Voted No / Passed to approve ordinances as follows: • 541 -12 - regarding scheduled increases in water capacity charges and amending Administrative Code Section 3.1.49(e) and superseding Ordinance No. 537 -12 in its entirety. 0 0 REGULAR BOARD MEETING MINUTES - JULY 5, 2012 PAGE - 6 • 542 -12 - setting sewer capacity charges and amending Administrative Code Section 4.5.7 and superseding Ordinance No. 538 -12 in its entirety. Director Jones voted no since he would prefer that the recom- mended schedule of increases be adhered to. Moved Vogelgesang / Second Sheehan / Passed Unanimously to approve payment in the amount of $2,066,371.34. Director Vogelgesanq reported the Redevelopment Successor Agency hired a realtor to sell properties, but nothing has come before the oversite board as of yet. Director Schafer pointed out that grants are still available as evidenced by the grant the District is applying for with the California Department of Water Resources. If successful, it will help the budget since it would pay for the District's entire groundwater assistance program. He also stressed the importance of staff staying abreast of training and certifications, and obtaining the education necessary to keep up with the industry, in the most cost effect - tive manner possible. The July Board meeting was cancelled. August 8 is the next regular meeting. They will review the opportunities to cost - share in the services of ENS Resources (the District's Washington D.C. representatives) to work on issues that face both the District and the County Water Agency. Richard Solbriq reported on his attendance at the Angora Fire 5th Anniversary forum hosted by Senator Ted Gaines. A status report was made on the efforts to achieve 90 of the recommen- dations that were made after the fire, and public comments were heard. Fire officials were very complementary of the District on efforts to improve and provide fire protection. 3:15 P.M. 4:00 P.M. POSTPONEMENT OF SCHEDULED CAPACITY CHARGE INCREASES (continued) PAYMENT OF CLAIMS BOARD MEMBER REPORTS EL DORADO COUNTY WATER AGENCY REPORT GENERAL MANAGER REPORT ADJOURNMENT TO CLOSED SESSION RECONVENED TO OPEN SESSION REGULAR BOARD MEETING MINUTES - JULY 5, 2012 PAGE - 7 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 re: Memorandum of Understanding with the Management Unit Present During the Closed Session - Agency Negotiators: Austris Rungis /IEDA, Richard Solbrig /General Manager, Nancy Hussmann /Human Resources Director, Paul Hughes /Chief Financial Officer No reportable Board action was taken. d. Pursuant to Government Code Section 54957(a) /Conference with Labor Negotiators Agency Negotiators re: Memorandum of Understanding with Stationary Engineers, Local 39 Present During the Closed Session - Agency Negotiators: Austris Rungis /IEDA, Richard Solbrig /General Manager, Nancy Hussmann /Human Resources Director, Paul Hughes /Chief Financial Officer No reportable Board action was taken. 4:00 P.M. C ATTEST: ADJOURNMENT Eric W. Schafer, B4arc,P'resident South Tahoe Public Utility District Kathy Sharp, glerk of the Bc'ard South Tahoe ublic Utility 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. 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: / Title / Affiliation: 7/c 1 1* Address: S. L 7; Phone: 4 3 a 2- t� 4-- 7 3' C II± 1I-a�m available to respond to questions. H 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: free m e /1-;4' ec T AMt