Minutes 01-21-2016 sotvrH TAHoo
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SOUTH TAHOE PUBLIC UTILITY DISTRICT
Richard Solbrig, General Manager Shannon Cotulla, Assistant General Manager
Randy Vogelgesang, President BOARD MEMBERS Kelly Sheehan, Vice President
Chris Cefalu, Director James R. Jones, Director Duane Wallace, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
January 21, 2016
MINUTES
The South Tahoe Public Utility District Board of Directors met in regular session at 2:00 p.m., at the
District Office, located at 1275 Meadow Crest Drive, South Lake Tahoe, California.
ROLL CALL:
Board of Directors: Directors, Jones, Sheehan and Wallace
Absent: President Vogelgesang, Director Cefalu
Staff: Paul Hughes, Richard Solbrig, Gary Kvistad, Melonie Guttry, Shannon Cotulla, Marla Sharp, Tim
Bledsoe, Doug Van Gorden, Jim Hilton, Cliff Bartlett, Donielle Morse, Steve Caswell, Brian Bartlett, Ivo
Bersohn, Trevor Coolidge, John Thiel
CONSENT CALENDAR:
Moved Wallace / Second Jones/ Vogelgesang Excused/ Cefalu Absent/ Jones Yes /Sheehan Yes /
Wallace Yes to approve the Consent Calendar as presented.
a. LIABILITY CLAIM AGAINST SOUTH TAHOE PUBLIC UTILITY DISTRICT RECEIVED FROM CAREN
SIMMONS
(Tim Bledsoe, Manager of Customer Service)
Rejected claim as recommended by Carl Warren & Company
b. TAHOE KEYS SEWER PUMP STATION, 275 KW GENERATOR
(Randy Curtis, Manager of Field Operations and Cliff Bartlett, Equipment Repair Supervisor)
Authorized staff to go out to bid for one MTU 275 kW Generator
c. 2015/2016 BUDGETED VEHICLE PURCHASE, 3/4 TON DODGE PICK-UP TRUCK WITH UTILITY BODY
(Randy Curtis, Manager of Field Operations and Cliff Bartlett, Equipment Repair Supervisor)
Approved the purchase of one (1) 3/4 ton Dodge pick-up from the State of California
competitive Bid Contract #1-14-23-20A in the estimated amount of$30,193.27
REGULAR BOARD MEETING MINUTES-January 21, 2016 PAGE-2
d. SEASONAL HELP FOR UNDERGROUND REPAIR, SEWER
(Doug VanGorden,Supervisor, Underground Repair,Sewer and Randy Curtis,Manager of Field Operations)
Approve direct hiring of two seasonal employees for Underground Repair, Sewer in the
estimated amount of$33,853
e. REGULAR BOARD MEETING MINUTES: December 17, 2015
(Melonie Guttry, Executive Services Manager/Board Clerk)
Approved December 17, 2015, Minutes
ITEMS FOR BOARD ACTION
a. South Y Extraction Well Suitability Investigation (Ivo Bergsohn, Hydrogeologist)
Staff provided an overview of the suitability investigation project. El Dorado County funds are
being used to fund this project with a 50% match. Proposition 1 funds for groundwater may
also be available later this year.
Moved Jones /Second Wallace / Vogelgesang Excused / Cefalu Absent/Jones Yes /
Sheehan Yes /Wallace Yes to accept the alternate Cost Proposal from GEI Consultants to
provide engineering services for the South Y Extraction Well Suitability Investigation Project.
b. Mutual Aid and Assistance Agreement with Tahoe Keys Property Owner's Association (Tim
Bledsoe, Manager of Customer Service)
Staff gave an overview of the proposed Tahoe Keys Property Owner's Association Mutual Aide
Agreement. This Agreement is a recommendation to the Tahoe Keys by the State Water
Resources Control Board. This Agreement is very similar to the Lukins' Agreement, with one
main difference, that Lukins' intertie is open and the Tahoe Keys intertie is closed.This
Agreement is on a 12 month time limit, which may be extended if needed. The Agreement
includes a 90 day out clause and staff explained that if both the Tahoe Keys and Lukins
Agreements were used at the same time, the District may need to bring standby wells online.
There are provisions in the Agreement to shut the intertie if needed.
Moved Jones/Second Wallace / Vogelgesang Excused /Cefalu Absent/Jones Yes /Sheehan
Yes/ Wallace Yes to approve a Mutual Aide and Assistance Agreement between South Tahoe
Public Utility District and the Tahoe Keys Property Owners Association.
c. Waste Water Treatment Plant Emergency Generator Replacement Project
(Stephen Caswell,Senior Engineer)
Staff provided an overview of the project. The current generator does not meet the Tier 2 air
quality regulations and the District must have a new operational generator by the year 2020.
Moved Jones /Second Sheehan / Vogelgesang Excused / Cefalu Absent/Jones Yes/
Sheehan Yes/Wallace Yes to authorize Task Order No. 8 to HDR, Inc., in the amount of
$548,386 for engineering services for the design of the Waste Water Treatment Plant
Emergency Generator Replacement Project and amend Task Order No. 7 to HDR reducing the
total to $91,708.
d. State Water Resources Control Board Meters Loan (Richard Solbrig,General Manager)
The Board reviewed the latest meter loan proposal from the State Water Resources Control
Board (SWRCB). Staff explained the latest proposal offered to the District which is a 30 year
loan at 1.8% interest with a $2.5 million grant for principal forgiveness. In addition, there is a 20
year term option, which increases the annual payment and could potentially create problems
REGULAR BOARD MEETING MINUTES-January 21, 2016 PAGE-3
for future District borrowings. Staff's recommendation is to accept the longer term 30 year
loan, which does cost more, but provides more flexibility. The District is prepared to send a
letter to SWRCB stating if they issue a new contract with the terms as proposed, the District is
prepared to sign it and withdrawal the appeal. Otherwise, the District will continue with the
appeal to the SWRCB. The District would not need to start making payments on the principal
until the projects are complete, but the payments on the interest would begin at the contract
start. Richard has been in contact with John Mills, who agrees with this recommended
approach to the loan.
Moved Wallace /Second Sheehan / Vogelgesang Excused / Cefalu Absent /Jones Yes/
Sheehan Yes/Wallace Yes to authorize staff to accept the new offer of 30 years at 1.8%
interest including a $2.5 million grant principal forgiveness, or lower as possibly negotiated, with
the ability to drop our appeal if deemed acceptable.
f. Approve Payment of Claims (Debbie Henderson, Accounting Manager)
Moved Sheehan /Second Jones / Vogelgesanci Excused / Cefalu Absent /Jones Yes /Sheehan
Yes/ Wallace Yes to approve Payment of Claims in the amount of$1,629,131.84.
STANDING AND AD-HOC COMMITTEE REPORTS:
Director Jones reported the District is nearing completion of the aeration basin project, and a tour
may be scheduled in the near future.
BOARD MEMBER REPORTS:
Director Jones reported he attended the Employee Communications Committee meeting this
morning and there was discussion regarding the loop road and associated costs to move the utilities.
EL DORADO COUNTY WATER AGENCY PURVEYOR REPORT:
Nothing to report.
GENERAL MANAGER REPORT: Richard Solbrig reported on several items:
• The State Water Resource Control Board is looking at continuing current conservation
regulations and the District has submitted comment letters regarding these regulations.
• The District received a water conservation warning letter from the state indicating the District is
within 4% of our target for June through November. The letter does not require a response from
the District.
STAFF/ATTORNEY REPORTS:
Staff reported the District is mandated to monitor lead levels every 3 years and is required to test at
30 different locations. The District actually tests at 92 different locations in our system that is
conducted through water taps at resident homes. If the 90th percentile indicates 15 parts per billion or
higher for lead, then the District must take action for lead issues in our system. The District's 90th
percentile test was a 2.5 parts per billion, which is the detection limit for lead in drinking water. This
indicates the District's water supply has very little lead.
Staff reported the Lake Tahoe Restoration Act has moved out of committee to the senate.
REGULAR BOARD MEETING MINUTES-January 21, 2016 PAGE-4
An open house is scheduled at Lake Tahoe Resort Hotel on January 26th regarding the Highway 50
loop road planning. Staff has had some conversations with Tahoe Transportation District regarding
the project.
ADJOURNMENT: 3:07 p.m.
Randy Vogelgesang, Board President
`1)7glayl AA South Tahoe Public Utility District
Melonie Guttry, Clerk of the :.ard
South Tahoe Public Utility District