Minutes 03-21-13 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
MARCH 21, 2013
MI N UTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
March 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 Cefalu, Jones, Vogelgesang, Sheehan
STAFF:
Solbrig, Sharp, Sciuto, Hughes, C. Stanley, Van Gorden, Bird, Ryan,
Hussmann, Cocking, Bledsoe, Cullen, Rasmussen, Henderson, Curtis,
Attorney Kvistad
GUESTS:
Brian Wallace/Grant Thornton, Brooke Laine/City of South Lake
Tahoe Council Member
President Schafer addressed the misinformed and inflammatory COMMENTS
comments made regarding the District during a recent City
Council meeting. Council Member, Brooke Laine, relayed her
commitment to attend the District's Board meetings as a liaison
and to open lines of communication, be better informed, and
create a collaborative rather than adversarial relationship.
a. Equipment Trailer Purchase-Approved purchase of a Felling CONSENT CALENDAR
FT-4002 deck-over tilt equipment trailer from Schafer Equip-
ment Company, in the amount of $26,404.92, which includes
tax and shipping;
REGULAR BOARD MEETING MINUTES-MARCH 21,2013 PAGE-2
b. Temporary Help for Inspections -Approved contract with CONSENT CALENDAR
Blue Ribbon Temporary Services for two temporary (continued)
employees, in the estimated amount of $53,000;
c. Temporary Help for Underground Repair Water-Approved
contract with Blue Ribbon Temporary Services for two
temporary employees, in the estimated amount of $54,125;
d. Temporary Help for Underground Repair Sewer-Approved
contract with Blue Ribbon Temporary Services for two
temporary employees, in the estimated amount of $61,100;
e. Approved Regular Board Meeting Minutes: February 21, 2013.
Brain Wallace, Grant Thornton, gave a PowerPoint presentation PRESENTATION: REPORT ON
covering the audit results and financial statements for Fiscal THE 2012 FISCAL YEAR
Year ending June 30, 2012, including the single audit performed FINANCIAL STATEMENT
on grants. No misstatement of facts was found and no adjust- AUDIT
ments were recommended. The clarity of the financial statements
are excellent and very transparent. Staff was thanked for their
efforts, in particular, Debbie Henderson was recognized for her
efforts.
Paul Sciuto gave a PowerPoint presentation covering the high- PRESENTATION: WATER
lights of the Water System Optimization Plan. He noted the plan SYSTEM OPTIMIZATION
can be adjusted based on input from the Board and public. PLAN LEVEL OF SERVICE
Topics included: key service objectives for the water distribution
system, quantifiable goals, and associated costs. The main
priorities are to provide adequate water supply (undersized
waterline replacement) and provide the water cost efficiently
(water meters). The remainder consists of smaller capital projects
needed to bring the system up to the appropriate level.
ITEMS FOR BOARD ACTION
Staff worked with Bartle Wells Associates to complete a $6.7M WATER BORROWINGS FOR
borrowing to finance the State Streets and Sierra Water Line INFRASTRUCTURE IMPROVE-
Replacement Projects scheduled to begin this spring. In MENTS AND DEBT
conjunction with the borrowing, two older borrowings from REFINANCING
1999 and 2001 will be refinanced to take advantage of the
lower interest rates creating an estimated savings of $159,000.
The terms are 2.27% interest for 17 years. Staff is also working
to refinance the 2007 sewer debt which is estimated to create
$800,000 in savings.
REGULAR BOARD MEETING MINUTES-MARCH 21,2013 PAGE-3
Moved Vogel_ec� san_q /Second Jones / Passed Unanimously to WATER BORROWINGS FOR
approve Resolution No. 2923-13 authorizing and directing the INFRASTRUCTURE IMPROVE-
execution of an installment sale agreement with Public Property MENTS AND DEBT
Financing Corporation of California for the purpose of REFINANCING
refinancing outstanding obligations, financing water system (continued)
improvements, and authorizing and approving related
documents and actions.
During the 2012 contract negotiations, the District agreed to SIDE LETTER AMENDMENT
implement a tax-deferred Retirement Health Savings Plan to TO MANAGEMENT
be used to reimburse medical expenses after retirement. The MEMORANDUM OF
provider selected was ICMA-RC, and the details of the options UNDERSTANDING
available under such a Plan became available. The Plan allows
for unused sick leave, for employees hired before January 1, 2013,
to be rolled into the Plan on a tax-deferred basis, upon separation
from service. The management staff would like to amend their
MOU (Memorandum of Understanding) to mandate 20% of the
vested sick leave balance for each manager be rolled into the
ICMA-RC Retirement Health Savings Plan upon their retirement.
Employees hired after January 1, 2013, would not be eligible
for this benefit. A side letter to the MOU is required to amend
existing sick leave language. This item has no cost to the District,
and can be revisited and changed after any contract negotiations.
It was noted that the Union will consider their options during their
2014 negotiation process.
Moved Jones /Second Sheehan / Passed Unanimously to approve
Side Letter amending the Management MOU.
Moved Cefalu /Second Vogel_ec� san_q / Passed Unanimously to PAYMENT OF CLAIMS
approve Payment of Claims in the amount of $1,162,054.75.
Finance Committee: The committee met March 21 to review the STANDING COMMITTEE
annual audit and give comments. REPORTS
Director Jones: reported on his attendance at the joint meeting BOARD MEMBER REPORTS
of ACWA Region 3 and Mountain Counties Water Resources
Association; he will attend a workshop with staff re: small hydro
systems; and distributed his report and associated costs from the
Washington D.C. conference.
Director Vogel_ec� san_g; reported on the recent City Council meet-
ing where incorrect information was given related to the District
about TJ Maxx/Lukins water service. Staff reported a meeting has
been scheduled with representatives to clarify their misconceptions,
to communicate issues, and discuss options available.
REGULAR BOARD MEETING MINUTES-MARCH 21,2013 PAGE-4
Richard Solbria: reported on his attendance at the Utility Manage- GENERAL MANAGER
ment Conference concerning water and wastewater long-range REPORT
planning.
Leqal Counsel: Gary Kvistad reported a draft of the proposed STAFF REPORT
rate adjustment was distributed to Board members. He asked for
their comments and concerns. None were received. A 5% rate
increase will be implemented starting with the current billing
statement.
3:30- 3:40 P.�vi. ADJOURNED TO CLOSED
SESSION AND
RECONVENED TO OPEN
SESSION
ACTION / REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION
a. 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.
b. 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.
3:40 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