Minutes 05-16-13 S�v-rH rqy�F
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SOUTH TAHOE PUBLIC UTILITY DISTRICT
Richard Solbri , General Mana er Paul Sciuto, Assistant General Mana er
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
MAY 16, 2013
MI N UTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
May 16, 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, Cefalu
STAFF:
Solbrig, Sciuto, Hughes, Thiel, Bledsoe, Hussmann, Rasmussen,
Curtis, Nolan, Bergsohn, Eidam, Attorney Kvistad
GUESTS:
Brooke Laine/Councilwoman, City of South Lake Tahoe;
Patrick Enright/General Counsel, City of South Lake Tahoe;
Tim Quinn & Marcia Wulff/Association of California Water Agencies;
Kae Reed/Lake Tahoe News; Jennifer Lukins/Lukins Water Company;
Kara Thiel/Attorney, Feldman McLaughlin Thiel, LLC;
Kevin Lane; Hal Cole; Harry Segal; Dennis Cocking
An Addendum to the Agenda (Diamond Valley Ranch Irrigation ADDENDUM TO AGENDA
Improvements Project) was received subsequent to the Regular
Board meeting agenda being posted. Due to the need for
immediate action, it must be passed by a 2/3 vote to add it
to this agenda.
Moved Cefalu /Second Sheehan / Passed Unanimously to
add the Diamond Valley Ranch Irrigation Improvement Project
as Item bg.
REGULAR BOARD MEETING MINUTES-MAY 16,2013 PAGE-2
Consent Item d. (Meter Project Application to CDPH (California CORRECTIONS TO
Department of Public Health) was brought forward for discussion AGENDA OR CONSENT
prior to Board action. CALENDAR
(continued)
Moved Vogel_ec� san_q /Second Cefalu / Passed Unanimously to CONSENT CALENDAR
approve the Consent Calendar as amended:
a. Temporary Help for Information Systems Department -
Approved renewal of contract with Blue Ribbon for a
temporary special projects technician, in the estimated
amount of $24,400;
b. Groundwater Protection Program - DWSPA (Drinking Water
Source Protection Area) update -Approved the cost
proposal from Gnomon, Inc. to provide professional services
needed to update the District's DWSPA datasets, map, and
GIS tool, in the estimated amount of $19,750;
c. Harrison Avenue Erosion Control Project-Authorized staff to
enter into an agreement with the City of South Lake Tahoe
to provide the relocation of water and sewer utilities;
d. See Consent Item Brought Forward;
e. Approved Regular Board Meeting Minutes: April 18, 2013;
f. Approved Regular Board Meeting Minutes: May 2, 2013;
g. Approved Public Meeting Minutes: May 2, 2013.
CONSENT ITEM BROUGHT FORWARD FOR DISCUSSION/SEPARATE BOARD ACTION
Staff clarified that the District has the right to accept or reject the METER PROJECT APPLI-
loan proposal from CDPH when it is offered, and will CATION TO CDPH
provide a recommendation based on the financing terms Consent Item d.
offered.
Moved Jones /Second Sheehan / Passed Unanimously to
adopt Resolution No. 2931-13 to CDPH for the Submission of
a Meter Project Funding Application through the Safe Drinking
Water State Revolving Fund Program.
ITEMS FOR BOARD ACTION
The Temporary Water Supply Agreement between the District EXTENSION OF TEMPORARY
and Lukins Water Company is scheduled to expire June 1, 2013. WATER SUPPLY AGREE-
Staff recommended the agreement be extended through MENT WITH LUKINS WATER
August 1, 2013, to allow Lukins to continue providing public and COMPANY
REGULAR BOARD MEETING MINUTES-MAY 16,2013 PAGE-3
private fire protection within the Lukins service area utilizing water EXTENSION OF TEMPORARY
supplied through the intertie. WATER SUPPLY AGREE-
MENT WITH LUKINS WATER
COMPANY
(continued)
Moved Jones /Second Cefalu / Passed Unanimously to approve
the First Amendment to the Temporary Water Supply Agreement
with Lukins Water Company.
The Chateau Construction Agreement TSV (Tahoe Stateline TAHOE STATELINE VENTURE,
Venture, LLC) is a modification to the agreement that was pre- LLC -THE CHATEAU
pared for Lake Tahoe Development, LLC which was never signed CONSTRUCTION
and completed in 2007. This Agreement outlines the construc- AGREEMENT: REDEVELOP- _
tion and dedication of the new waterline and release of the MENT PROJECT 3
public utility easement in preparation for development of six
parcels along Highway 50 at Stateline. With this project comes
many issues and concerns: there are water and sewer
lines constructed around the redevelopment area that are not
complete; the current lines in place were never dedicated to
the District; the prior and future assessor parcels must match up
and be consistent; water supply arrangements must be coordi-
nated with Lakeside Park Association; the location of the new
waterline needs to be determined; Right-of-ways and easements
will be necessary; and, the as-builts for the existing sewer and
water lines have yet to be obtained from TSV. Although there
is an urgency to proceed with this project as permits expire
July 15, 2013, President Schafer requested more information be
brought forward at the next Board meeting before a decision
is made.
Moved Jones /Second Sheehan / Passed Unanimously to bring this
item back for discussion at the June 6, 2013, Board meeting.
Representatives from ACWA gave a PowerPoint presentation PRESENTATION: ACWA
covering the benefits and value of ACWA membership including MEMBERSHIP BENEFITS AND
leadership, advocacy, information and service for public water STRATEGIC PLAN
agencies throughout the state.
A limited number of Tahoe Keys customers are not physically TRANSFER OF TAHOE KEYS
connected to the Tahoe Key's primary water distribution system. CUSTOMERS AND ASSETS
In order for Tahoe Keys to serve these customers, the District has TO THE SOUTH TAHOE
been wholesaling water through a master meter. Tahoe Keys PUBLIC UTILITY DISTRICT
proposed to transfer those customers and related assets to the
District. In order to complete a transfer the customers must first
agree to give up their right to water service from Tahoe Keys
and an agreement reached to become District customers, and
adhere to all charges in accordance with the District's current
REGULAR BOARD MEETING MINUTES-MAY 16,2013 PAGE-4
water rate structure. A signed agreement is also required from TRANSFER OF TAHOE KEYS
the Tahoe Keys Property Owners Association. CUSTOMERS AND ASSETS
TO THE SOUTH TAHOE
PUBLIC UTILITY DISTRICT
(continued)
Moved Schafer/Second Vogel_ec� san_q / Passed Unanimously to
authorize counsel and staff to move forward with the transfer
of Tahoe Keys customers and assets to the South Tahoe Public
Utility District.
Moved Vogel_ec� san_q /Second Sheehan / Jones Voted No to FISCAL YEAR 2013/14
adopt Resolution No. 2929-13, adopting the Fiscal Year 2013/14 SEWER ENTERPRISE FUND
Sewer Enterprise Fund Budget in the amount of $23,859,124. BUDGET
Jones voted no stating the public would rather see smaller,
frequent increases as opposed to larger infrequent increases.
Moved Vogel_ec� san_q /Second Cefalu / Jones Voted No to FISCAL YEAR 2013/14
adopt Resolution No. 2930-13, adopting the Fiscal Year 2013/14 WATER ENTERPRISE FUND
Water Enterprise Fund Budget in the amount of $15,433,148. BUDGET
Jones voted no stating the public would rather see smaller,
frequent increases as opposed to larger infrequent increases.
Moved Cefalu /Second Sheehan / Passed Unanimously PAYMENT OF CLAIMS
to approve payment in the amount of $921,649.60.
The District completed its application to the U.S. Army Corp ADDENDUM TO THE
of Engineers Nationwide Permit Program for the DVRIIP AGENDA: DIAMOND
(Diamond Valley Ranch Irrigation Improvement Project) - VALLEY RANCH
Phase 1 . This permit fee is required for the infrastructure IRRIGATION IMPROVE-
needed to irrigate 70 acres of District lands using center pivot MENTS PROJECT
systems and disinfected recycled water and/or existing fresh
water for the cultivation of alfalfa at the Diamond Valley
Ranch and is due June 1, 2013.
Moved Schafer/Second Sheehan / Passed Unanimously
to approve the payment in the amount of $102,600.
President Schafer distributed an article "Thoughts on Leader- BOARD MEMBER REPORT
ship" and encouraged all to read. He reported on the CASA
Conference and directed staff to obtain copies of the Power-
Point presentations from the conference if they are available
to the public. He also distributed information regarding grant
opportunities available through the State Water Quality Control
Board.
Director Jones reported the next meeting is June 12, 2013. EL DORADO COUNTY
WATER AGENCY
PURVEYOR REPORT
REGULAR BOARD MEETING MINUTES-MAY 16,2013 PAGE-5
Richard Solbria reported the EI Dorado County Water Agency GENERAL MANAGER
budget was passed and all District requests were funded. The REPORT
August 14, 2013, meeting will be held at the District.
Paul Hu__qhes gave an update on the CaIPERS retirement STAFF REPORT
program. The PERS Board stated PERS should be a fully
funded program in 30 years.
4:35 PM ADJOURNMENT TO
CLOSED SESSION
ACTION / REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION
a. Pursuant to Government Code Section 54956.9(b)/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.
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.
4:45 PM ADJOURNMENT
Eric W. Schafer, Board President
South Tahoe Public Utility District
ATTEST:
Kathy Sharp, Clerk of the Board
South Tahoe Public Utility District
By: Eileen Eidam