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08-02-01SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" Robert Baer, General Duane Wallace, President BOARD MEMBERS Richard Solbri Assistant James R. Jones, Vice President Eric Schafer, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT AUGUST 2, 200'1 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, August 2, 2001,2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California. BOARD OF DIRECTORS: President Wallace, Directors Jones, Strohm, Mosbacher, Schafer. ROLL CALL STAFF: Solbrig, Callian, McFarlane, Brown, Rieger, Coyner, R. Johnson, Schroeder, Donovan, Bird, Attorney Kvistad. GUESTS: Joyce Blackstone, Ed Sanders, Roy Hampson Staff requested Consent Item f. (Revised Pension Plan Document) be removed and placed on the next regular Board Meeting Agenda. CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR REGULAR BOARD MEETING MINUTES - AUGUST 2, 2001 PAGE - 2 Moved Mosbacher/Second Strohm/Passed Unanimously to approve the Consent Calendar as amended: CONSENT CALENDAR ao Water Disconnection Procedures - Authorized implementation of the two-week water disconnection procedures on the property located at 4010 Lake Tahoe Blvd., APN 29-442-04, for failure to perform annual backflow assembly(les) test; Purchase of Water Meter Parts - (1) Authorized exception to bidding procedures as outlined in the Purchasing Policy for Sole Source Providers; and (2) Approved purchase of water meter parts from Western Nevada Supply in the amount of $15,375.78; Design and Construction of Alpine County Office / Storage Building - Approved Change Order No. 2 for Thomas Haen Company, Inc., in the amount of $3,005; Natural Gas Purchase Contract - (1) Authorized exception to bidding procedures as outlined in the Purchasing Policy for Sole Source Purchases; and (2) Approved entering into contract with IGI Resources Inc.; eo Santa Claus and Highway 89 Bore - Approved additional cost for rock excavation to The Boring Business in the amount of $10,524.11; f. Item removed; Gardner Mountain Waterline Replacement Phase 3 -Approved Change Order No. 2 for White Rock Construction in the amount of $10,164.19. ITEMS FOR BOARD ACTION Claimant submitted a claim for the entire value of his residence for alleged damages caused by a sewer backup. Lisa Coyner reported that it was staff's recommendation that the Board deny Mr. Sander's claim as it had no merits. There was no evidence that a sewer backup leak, which was located downhill of his property, caused damage to his house on December 24, 2000. LIABILITY CLAIM: SANDERS Director Jones added that Mr. Sanders attended the July 30 Operations Committee meeting and an agreement could not be reached. The Committee recommended the claim be denied. REGULAR BOARD MEETING MINUTES - AUGUST 2, 200'1 PAGE - 3 Mr. Sanders stated that the District spilled between ten to twenty thousand gallons of sewage on his property located at 1420 June Way. He claimed this caused the back edge of his property to sink. Because he is con- cerned that possible contamination has ruined his property, Mr. Sanders has filed a claim for the full value of his property. 2:20 P.M. Legal counsel advised the Board and received direction regarding this item. No Board action 2:30 P.M. LIABILITY CLAIM: SANDERS (continued) ADJOURNED TO CLOSED SESSION Pursuant to Government Code Section 54956.9(b)/Conference Legal Counsel re: Pending Litigation (one case) RECONVENED TO REGULAR SESSION Moved Strohm/Second Jones/Passed Unanimously to deny Mr. Sanders' claim. John Thiel reported that three bids were received at the July 31,2001, bid opening, with C.B. Ebright Company, Inc., being the lowest bidder. The C.B. Ebright Company, Inc., bid was missing one page that had not likely not been included in the specifications packet. Charles Ebright returned within one hour of the bid opening and signed the page. Thiel requested the Board waive the minor irregularity and award the contract to C.B. Ebright Company, Inc. Moved Strohm/Second Jone/Passed Unanimously to award contract to lowest responsive, responsible bidder, C.B. Ebright Company, Inc., in the amount of $197,424. Moved Wallace/Second Strohm/Passed Unanimously to award contract to Polydyne Inc., in the amount of $65,000. Moved Schafer/Second Wallace/Passed Unanimously to approved payment in the amount of $859,516.76 Water and Wastewater Operations Committee: The committee met July 30. Minutes of the meeting are available upon request. GARDNER MOUNTAIN SITEWORK AND WATERLINE REPLACEMENT, AND FOREST MOUNTAIN SITEWORK POLYMER PURCHASE CONTRACT PAYMENT OF CLAIMS BOARD MEMBER STANDING COMMITTEE REPORTS REGULAR BOARD MEETING MINUTES - AUGUST 2, 2001 PAGE-4 Federal Legislative Ad Hoc Committee: President Wallace reported on two items: 1) There will be a Lake Tahoe Basin Restoration Summit on August 21 at Zephyr Cove. He submitted a request to Senator Ensign's office that the District Board, Bob Baer, Richard Solbrig, and Dennis Cocking be issued invitations to attend this event. 2) Wallace and Dennis Cocking will be traveling to Washington D. C., in early September to meet with District consultants and legislators. Director Mosbacher reported that she received a tele- phone call from an Alpine County resident who had heard that the District was going to build a new dam and reservoir in Alpine County since Harvey Place Reservoir could no longer be used due to MTBE contamination. Director Mosbacher assured the caller that this was not true, and corrected the misconception about MTBE in Harvey Place. She also asked Hal Bird to look into this rumor. Assistant Manager/Engineer: Richard Solbrig reported that the B-Line Phase 3 Project will be delayed until 2003 because of projected schedules and concerns by the TRPA, USFS, Lahontan, and the California Oregon Trails Association. The District has contracted with Parsons to prepare an Environmental Impact Report and Environmental Impact Statement on this project. Tallac Pump Station Force Main Repair Emer_eency of 7/5/01 '. Richard Solbrig reported that steel riflings have been ordered to make a permanent bypass in front of the San Mortiz Pump Station. The TRPA permit has been filled out and delivered to the property owner for his signature. The permit cannot be filed without the property owner's signature. The District will pre-purchase 2,500 feet of pipe at a cost of $25,000 for this project. Chief Financial Officer: Rhonda McFarlane, reported six bids were received for the sale of Water Revenue Refunding Bonds for the purpose of refunding the 1994 Installment Sale Agreement with LaSalle National Bank. Two of the bidders failed to meet the deadline. The sale was awarded to Bank of America Securities at an interest BOARD MEMBERS STANDING COMMITTEE REPORTS _ (continued) BOARD MEMBER REPORTS STAFF REPORTS STATUS OF EMERGENCY REPORT REGULAR BOARD MEETING MINUTES - AUGUST 2~ 2001 PAGE - 5 rate of 4.05%, which was well under what staff had estimated the District would receive. FSA Insurance Company was chosen to provide the Bond Insurance at a rate also below what staff had anticipated, increasing the District's overall savings to $550,000 (present value). 2:50 P.M. 3:00 P.M. 5:03 P.M. STAFF REPORTS (continued) MEETING BREAK MEETING RESUMED AND ADJOURNED TO CLOSED SESSION RECONVENE TO REGULAR SESSION ACTION / REPORT ON ITEMS DISCUSSED DURING EXECUTIVE SESSION No reportable Board action. No reportable Board action. No reportable Board action. No reportable Board Action. Pursuant to Government Code Section 54956.9(a)/Conference with Legal Counsel, Existing Litigation: Mountain Cascade Inc., and Valley Engineers, Inc. vs. STPUD Board of Directors and STPUD, County of El Dorado, Superior Court Case No. SC20000050 Pursuant to Government Code Section 54956.9(a)/Conference with Legal Counsel, Existing Litigation: Schwake vs. STPUD, Federal Case No. CV-N-93-851-DWH Pursuant to Government Code Section 54958.8/Conference with Real Property Negotiators - Negotiating Parties: Board of Directors, Robert Baer/General Manager. Under Negotiation: Consideration of Property Purchase; Property Identification: APN 1-080-80, APN 1-080-81, APN 1-080-82, APN 1-080-56, APN 1-080-60, APN 1-200-01, APN 1/200-10, APN 1-200-11 Pursuant to Government Code Section 54956.9(a)/Conference with Legal Counsel, Existing Litigation: STPUD vs. ARCO, et. al, San Francisco Superior Court Case No. 999128 REGULAR BOARD MEETING MINUTES - AUGUST 2, 2001 PAGE - 6 (3:23 P.M. - Director Strohm left meeting at this point.) No reportable Board action. 5:03 P.M. Pursuant to Government Code Section 54956.9(a)/Conference with Legal Counsel, Existing Litigation: STPUD vs. Lakeside Park Association, et al, County of El Dorado, Superior Court Case No. SC20010165 ADJOURNMENT Duane'e"~N'~lla(~e, B~)~rd President South Tahoe Public Utility District I~at~y S'har~p~le~o{ the Bo/~rd South TahOe" Public Utility District By: Jeri Callian, Assistant Clerk