Minutes 02-21-13 S�v-rH rqy�F
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SOUTH 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 Vogelgesang, Director Kelly Sheehan, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
FEBRUARY 21, 2013
MI N UTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
February 21, 2013, 2:00 p.m., at the District Office, located at 1275 Meadow Crest Drive,
South Lake Tahoe, California.
BOARD OF DIRECTORS: ROLL CALL
President Schafer; Directors Jones, Vogelgesang, Sheehan.
Director Cefalu was absent.
STAFF:
Solbrig, Sharp, Cocking, Cullen, Kosciolek, Curtis, Ryan,
C. Stanley, Cotulla, Attorney Kvistad
- The Presentation "Report on the 2012 Fiscal Year Financial CORRECTIONS TO THE
Statement Audit" was cancelled; AGENDA OR CONSENT
- The Presentation "Summary Analysis of Customer Satisfaction CALENDAR
Survey" was cancelled;
- Consent Item e. (Headworks Replacement Phase 2 Project)
was removed from the agenda.
Moved Jones /Second Vogel_ec� san_q / Cefalu Absent / Passed CONSENT CALENDAR
to approve the Consent Calendar as amended:
a. Meter Installation Responsibility- Enacted Ordinance No. 550-13
amending Administrative Code Section 3.2.5 regarding
District meter installation responsibility;
b. Comprehensive Facility-Wide Erosion Control Project- Extended
Northwest Hydraulic Consultants, Inc., contract for consulting
services, in the amount of $7,210;
REGULAR BOARD MEETING MINUTES- FEBRUARY 21,2013 PAGE-2
c. 2012 Water Tank Recoating Project- (1) Approved the CONSENT CALENDAR
Project Closeout Agreement and Release of Claims for (continued)
Crosno Construction, Inc.; and (2) Authorized staff to file
a Notice of Completion with the EI Dorado County Clerk;
d. Standardize Heavy Equipment Purchases to Caterpillar
and Case Equipment-Authorized sole-brand Caterpillar
and Case Equipment for future purchases of heavy equipment;
e. Removed from the agenda;
f. Approved Regular Board Meeting Minutes: January 3, 2013;
g. Approved Regular Board Meeting Minutes: January 17, 2013;
h. Approved Regular Board Meeting Minutes: February 7, 2013.
ITEMS FOR BOARD ACTION
Requestors, Frank and Delma Carson, did not attend the Board REQUEST TO APPEAR
meeting as expected. James Cullen spoke on their behalf. The BEFORE THE BOARD
Carson's cabin was destroyed by a fire in 2001, and the U.S. RECEIVED FROM FRANK
Forest Service terminated their Special Use Permit in 2003, and will AND DELMA CARSON
not allow the cabin to be rebuilt. The cabin had three sewer units CONCERNING TRANSFER
associated with it, which are owned by the Carson's. The Carson's OF SEWER UNITS
request approval to transfer the sewer units from 881 Pomo Road
to 715 Glorene Ave. Given that the sewer unit transfer program
expired December 31, 2012, the request must be approved by the
Board.
Since the sewer unit transfer program expired, the Board did not
want to set a precedent to allow additional transfers. Staff
explained that this was a unique situation for several reasons:
The U.S. Forest Service will not allow development on the parcel
the cabin was on, and sewer units cannot be used on that parcel.
The TRPA Basin Plan was revised to move development from out-
lying areas and from sensitive areas into the interior of the city and
approval of this item would support the concept of the Plan. It was
noted that the Carson's paid fees for eight years after the fire.
The Board directed staff to develop language listing reasons why
this situation is unique, and to bring it to a future Board meeting
for further consideration. It will require an amendment to the
Ordinance if approved.
No Board action.
REGULAR BOARD MEETING MINUTES- FEBRUARY 21,2013 PAGE-3
At the February 7, Board meeting, staff was directed to prepare POSTPONEMENT OF
the necessary ordinances required to postpone for six months SCHEDULED CAPACITY
the capacity charge increases currently scheduled for CHARGE INCREASES AND
January 1, 2013. STANDARDIZATION OF
DOMESTIC WATER
Staff was also directed to prepare the necessary ordinance to CAPACITY CHARGES
amend the District's Administrative Code requiring commercial
water capacity charges to be calculated based on estimated
water usage and modified two years later based on actual
usage. Ordinance No. 549-13 amends that section in the Code.
Water capacity charges for domestic water service will be
charged consistently among all customer classes based on the
fee schedule in the Code.
Moved Sheehan /Second Vogel_ec� san_q / Jones Voted No /
Cefalu Absent / Passed to approve Ordinance No. 547-13, regard-
ing scheduled increases in water capacity charges and amending
Administrative Code Section 3.1.49(e) and superseding Ordinance
No. 541-12 in its entirety.
Moved Vogel_ec� san_q /Second Sheehan / Jones Voted No /
Cefalu Absent / Passed to approve Ordinance No. 548-13, setting
sewer capacity charges and amending Administrative Code
Section 4.5.7 and superseding Ordinance No. 542-12 in its entirety.
Moved Vogel_ec� san_q /Second Sheehan / Cefalu Absent / Passed
to approve Ordinance No. 549-13, regarding water capacity
charges and amending Administrative Code Section 3.1 .24(a)
Moved Schafer/Second Jones / Cefalu Absent / Passed to PAYMENT OF CLAIMS
approve payment in the amount of $1,249,417.61 .
Finance Committee: The committee reviewed the proposed STANDING COMMITTEE
2013/2014 Budget, which was prepared with no rate increases REPORTS
recommended. A Budget Workshop will be held March 6.
Director Jones reported he will attend the Washington D.C. BOARD MEMBER REPORT
legislative conference as part of the ACWA (Association of
California Water Agencies) delegation.
The Agency met March 13. The main topic of discussion was EL DORADO COUNTY
the budget and money available for public awareness and WATER AGENCY REPORT
water conservation programs. Funding requests for next year
must be submitted by March 6.
President Schafer gave a verbal report on his attendance at the BOARD MEMBER REPORT
January CASA (California Association of Sanitation Agencies)
conference in lieu of a written report. The total amount
spent to attend this conference was $1,412.20.
REGULAR BOARD MEETING MINUTES- FEBRUARY 21,2013 PAGE-4
He also reported on plans to attend the Washington D.C. BOARD MEMBER REPORT
legislative conference as part of the CASA delegation. (continued)
Richard Solbria reported on three items: GENERAL MANAGER
1) A District Outreach Presentation was made to the EI Dorado REPORTS
County Board of Supervisors, which was well received. The next
Outreach Presentations will be to the TRPA Governing Board,
and to the Kiwanis Club.
2) The process with the Army Corp of Engineers regarding the
DVR (Diamond Valley Ranch) project is moving ahead. He
summarized efforts underway.
3) The interest for the water fund borrowing was set at the excep-
tional rate of 2.36% for 17 years as a result of the competitively bid
borrowing the District received.
General Counsel: Gary Kvistad reported his firm has not requested
a rate adjustment for almost five years due to the poor economy.
In order to catch up on costs while still being mindful of the
economy, a 6% increase will be effective on the next billing cycle.
Director Schafer requested a brief letter be written to the Board
summarizing the increase.
District Information Officer: Dennis Cocking recommended that
the District vote for a director from Grizzly Flats to serve on EI Dorado
County LAFCO for a 4-year term.
3:05- 3:20 P.�vi. ADJOURNED TO CLOSED
SESSION AND
RECONVENED TO OPEN
SESSION
ACTION / REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION
a. Pursuant to Government Code Section 54956.9(A)/Conference with Legal Counsel re:
existing litigation re: EI Dorado County Superior Court Case SC20120227 GRCLT
Condominium vs. South Lake Tahoe Public Utility District (filed 10/22/12)
No reportable Board action.
b. Pursuant to Section 54956.9(a) of the California Government code, Closed Session was
held for conference with legal counsel regarding existing litigation: False Claims Act
Case: United States, the States of California, Delaware, Florida, Nevada, and Tennessee
and the Commonwealths of Massachusetts and Virginia ex rel. John Hendrix v. J-M
Manufacturing Company, Inc. and Formosa Plastics Corporation, U.S.A., Civil Action No.
ED CVO6-0055-GW, United States District Court for the Central District of California.
No reportable Board action.
REGULAR BOARD MEETING MINUTES- FEBRUARY 21,2013 PAGE-5
c. Pursuant to Section 54956.9(a) of the California Government Code, Closed Session was
held for conference with legal counsel regarding existing litigation: Los Angeles County
Superior Court, Case No. BC459943, State of Nevada, et al. v. J-M Manufacturing, et al.
No reportable Board action.
3:20 P.�vi. ADJOURNMENT
Eric W. Schafer, Board President
South Tahoe Public Utility District
ATTEST:
Kathy Sharp, Clerk of the Board
South Tahoe Public Utility District