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2003 01-16SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" 'James R. Jones, President BOARD MEMBER Eric Schafer, Vice President REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT JANUARY 16, 2003 MINUTES,. The Board of Directors of the South Tahoe Public Utility District met in a regular session, January 16, 2003, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California. BOARD OF DIRECTORS: --~ President Jones, Directors Wallace, Schafer, Becker, Mosbacher STAFF: Baer, Solbrig, Sharp, Marshall, Coyner, Cocking, Bird, Schroeder, Hydrick, Zaninovich, Hoggatt, Donovan, Attorney Kvistad GUESTS: Chris Strohm Chris Strohm, who was present to hear the Firm Source Capacity Plan presentation, distributed copies of a series of news articles from the Sacramento Bee regarding a water district whose executives abused and overindulged in reimbursable expenses at the same time their district was proposing a 140% rate increase. He stated that while the District does a good job, this demonstrates how important it is to responsibly use, document, and account for expenditures of public funds. COMMENTS FROM THE AUDIENCE PAGE - 2 REGULAR BOARD MEETING MINUTES - JANUARY 16 2003 Rex Marshall, who recently filled the Customer Service Representative position, was introduced to the Board. Consent Item b. (Highway 50 Waterline Replacement Project) was brought forward for discussion prior to Board action. COMMENTS FROM THE AUDIENCE CONSENT CALENDAR Moved Schafer / Second Wallace / Passed Unanimously to approve the Consent Calendar as amended: Gardner Mountain Tank Replacement - (1) Approved Closeout Agreement and Release of Claims for Spiess Construction Company, Inc., and (2) Authorized staff to file a Notice of Completion with El Dorado County Clerk; b. See Consent Items Brought Forward; c. Adopted Regular Board Meeting Minutes: December 19, 2002. 'CONSENT ITEMS BRouGHT FORWARD FOR DISCUSSION i ACTION , Director Mosbacher stated the Change Order included extra charges incurred due to Pacific Bell's improper marking of their telephone duct bank. HIGHWAY 50 WATERLINE REPLACEMENT PROJECT (Consent Item b.) Moved Mosbacher/Second Becker/Passed Unanimously to approve Change Order No. 1 to West Valley Construction Company, Inc., in the amount of $84,735.25, and to send an invoice to Pacific Bell to recover $1,848.29 for improperly marking the duct bank. Rick Hyddck gave an overhead slide presentation of the District's Firm Source Capacity Plan. PRESENTATION: FIRM SOURCE CAPACITY PLAN Ken Schroeder reported three bids were opened on January 6. The Iow bidder, Edward R. Bacon Company, had no exceptions to the bid specifications and met all requirements. The vehicle is budgeted in the 2003104 budget and delivery will be on or after July 1, 2003. VACUUM TRUCK PURCHASE ITEMS FOR BOARD ACTION PAGE - 3 REGULAR BOARD MEETING MINUTES - JANUARY 16 2003 This item was reviewed by the Operations Committee. VACUUM TRUCK PURCHASE Since the truck is necessary and there were no other (continued) alternatives, approval was recommended. Moved Becker/Second Mosbacher I Passed Unan.imousl¥ to award bid to the lowest responsive, responsible bidder, Edward R. Bacon Company, for purchase of a Safe Jet Vac Truck, in the amount of $175,000. Richard Solbrig gave an overhead slide presentation covering the Engineering Department's 2003 project priority list. Based upon the Firm Source Capacity Plan, ongoing project commitments, and sewer system trouble spots, District staff assembled a project pdofity list. Staff members from Engineering, Operations, Maintenance, and Administration participated in the prioritization process. Utilization of outside consultants would be required for certain projects due to their size and/or complexity. Additional outside consultants can be considered in order to complete more projects on the list. Three options were presented to the Board in relation to the extent of outside consultant use. 2003 PROJECT PRIORITY LIST Jim Hoggatt presented the projects for consideration, and staffing requirements for each option. The three options ranged from the least intensive project schedule and staffing requirements, to the most ambitious schedule and staffing needs. The Operations Committee and staff have reviewed all options, and recommended Option 3, with the maximum number of projects and largest number of inspection staff. Option 3 includes all the projects listed in Options 1 and 2, plus the Wildwood Sewer Project. Moved Schafer/Second Becker/Passed Unanimously to approve priority list as recommended by staff (Option 3 as described above). Hatch & Parent's agreement with the Distdct was entered into approximately two and one-half years ago. The agreement provided for a ten percent discount for all fees that exceeded $300,000 in each fiscal term of the agree- ment. In the fall of 2002, Hatch & Parent discovered that the discount had not been provided for fiscal years 200012001 and 2001/2002. As a result, Hatch & Parent REPRESENTATION AGREEMENT FOR PROFESSIONAL LEGAL SERVICES PAGE - 4 REGULAR BOARD MEETING MINUTES -JANUARY 16 2003 did not raise its fees for the 2002~2003 fiscal year in order to offset the credit owed to the District. As a result, the District will receive credit at least equal to or greater than the amount of the discount for the prior two fiscal years. REPRESENTATION AGREEMENT FOR PROFESSIONAL LEGAL SERVICES (continued) The Legal Contract Ad Hoc Committee has met with Attorney Kvistad and recommended amending the agree- ment to: (1) Maintain Hatch & Parent's present (2001/2002) fee rate through 2002/2003 in order to provide the District with the requisite credit; and (2) Deleting the provision that provides the District with a ten percent discount fees that exceed $300,000 during each fiscal year. Moved Schafer ! Second Becker/Passed Unanimously to approve amended agreement (as described above) with Hatch & Parent. Moved Schafer I Second Becker/Passed Unanimously to approve payment in the amount of $1,156,441.37. Water and Wastewater Operations Committee:. The committee met January 14. Minutes of the meeting are available upon request. President Wallace reported he was selected to serve as Chairman of the County Water Agency board. PAYMENT OF CLAIMS BOARD MEMBER STANDING COMMITTEE REPORTS EL DORADO COUNTY WATER AGENCY PURVEYOR REPRESENTATIVES REPORT Director Mosbacher reported on three items: BOARD MEMBER REPORTS 1 ) She attended the Alpine County Board of Supervisors meeting and reported there was a new appointee to the Contract Commission. She also reported on the roadless initiative. 2) At a recent Meyers Roundtable meeting, she learned that the Old Meyers Grade conference center project that was proposed will not go forward. The property is now for sale. 3) In finalizing the route selection for the B-line Phase 3 project, she was advised that since her property could potentially be impacted, it would be a conflict of interest for her to be involved in decision making. She will not participate in discussions and decisions related to this project. PAGE - 5 REGULAR BOARD MEETING MINUTES - JANUARY 16 2003 Director Wallace reported Congressman Doolittle has indicated he will help with TMDL (Total Daily Maximum Load) issues, and with forest thinning. Assistant Manaqer I En.qineer:. Richard Solbrig reported the process to select a route alternative for the B-line Phase 3 Export Pipeline Replacement Project is still underway. 5:10 P.M. BOARD MEMBER REPORTS (continued) STAFF REpOR! ADJOURNED TO CLOSED SESSION 7:10 P.M. No reportable Board acti,on,:. RECONVENED TO REGULAR SESSION ACTION I REPORT ON ITEM DisCussED DURING, CLOSED SESSION Pursuant to Government Code Section 54956.(a)lConference with Legal Counsel - Existing Litigation: STPUD vs. John Breese Mumford, et al., El Dorado County Superior Court Case. No. SC20020030 No reportable Board action. Pursuant to Government Code Section 54956(a)/Conference with Legal Counsel - Existing Litigation: STPUD vs. F. Heise Land & Live Stock Company, Inc., William Weaver, Eddie R. Snyder, Crockett Enterprises, Inc., CIV S.02-0238 MLS JFM United States District Court for the Eastem District of California, Sacramento, CA No reportable Board action. Pursuant to Government Code Section 54956.9(a)lConfemnce with Legal Counsel - Existing Litigation re: Meyers Landfill Site: United States of America vs. El Dorado County and City of South Lake Tahoe and Third Party Defendants, Civil Action No. S-01-1520 LKK GGH, United States District Court for the Ea~_tem District of Ca. PAGE - 6 REGULAR BOARD MEETING MINUTES -JANUARY 16 2003 No reportable Board action. Pursuant to Government Code Section 54957.6(a)/Conference with Legal Counsel - Existing Litigation: STPUD vs. Lakeside Park Association, et al., County of El Dorado, Superior Court Case No. SC20010165 No reportable Board action. Pursuant to Government Code Section 54956.6(a)/Conference with Labor Negofiatom: Agency Negotiators - Board of Directors; Employee Organization - Represented and Unrepresented Employees No reportable Board action... Pursuant to Government Code Section 54957.6(a)/Conference with Labor Negotiators: Agency Negotiators - General Manager, Board of Directors; Unrepresented Employee Position - District General Counsel No reportable Board action.. Pursuant to Government Code Section 54957/Public Employee Performance Evaluation: General Manager 7:10 P.M. ADJOURNMENT Katl~ Shar lerk of the B6ard Y ,~ .... South Tahoe Public Utd~ty D~stnct z ZZ ~:z ~-0 z