Minutes 12/03/2015 y„U?H TAii„
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/C UTILITY
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
December 3, 2015
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: President Vogelgesang, Directors, Cefalu and Wallace
xcused: Director Jones
IIIPAbsent: Director Sheehan
Staff: Paul Hughes, Richard Solbrig, Gary Kvistad, Melonie Guttry, Brian Bartlett, Julie Ryan, John Thiel,
Rick Tydeman, Brian Chernago, Jeff Lee, Cuz Cullen
Guests: Jennifer Lukins, Lukins Brothers Water Company
CONSENT CALENDAR:
Moved Cefalu / Second Wallace/ Vogelgesana Yes / Cefalu Yes/ Jones Excused /Sheehan Absent/
Wallace Yes to approve the Consent Calendar as presented.
a. 2015 FIRE HYDRANT SERVICE EXPANSION AND LARGE METER REPLACEMENT PROJECT
(Julie Ryan, Principal Engineer)
Approved Change Order No. 1 to White Rock Construction in the amount of $148,749.88.
b. REGULAR BOARD MEETING MINUTES: November 19, 2015
(Melonie Guttry, Executive Services Manager/Clerk of the Board)
Approved November 19, 2015, Minutes
ITEMS FOR BOARD ACTION
a. Mutual Aid and Assistance Agreement with Lukins Brothers Water Company (Paul Hughes,Chief
Financial Officers)
Staff reported the District has been supplying Lukins with water for approximately 18 months
and a formal mutual aid agreement is in order. The agreement spells out the control of the
interties, costs associated with meter installation, service charge rates, length of time water is
REGULAR BOARD MEETING MINUTES- December 3, 2015 PAGE-2
supplied, a requirement for Lukins to actively seek corrective action and mutual aid services
between the two agencies. The proposed term is for 12 months, but does provide the District
the discretion to extend the term if Lukins is demonstrating that it is diligently developing and
implementing a solution to their issue. The District is working on an almost identical agreement
with the Tahoe Keys.
Jennifer Lukins reported that Lukins has been accepted by the Division of Drinking Water to
install a granulated, activative carbonated system at well sites 2 and 5. They are in the process
of applying for funding through SRF, which could take 6-9 months to approve funding. Lukins
has also contacted the California Water Association who will assist them in the application to
receive the construction funds, but they are also applying for a bridge loan in the interim. The
system being installed has been approved and is the same system that the Tahoe Keys utilizes.
Moved Wallace /Second Cefalu / Voqelgesang Yes / Cefalu Yes/ Jones Excused / Sheehan
Absent/ Wallace Yes to approve a Mutual Aid and Assistance Agreement between South
Tahoe Public Utility District and Lukins Brothers Water Company, Inc.
b. Approve Payment of Claims (Debbie Henderson, Accounting Manager)
Moved Vogelgesang /Second Cefalu / Vogelgesang Yes / Cefalu Yes /Jones Excused /
Sheehan Absent/ Wallace Yes to approve Payment of Claims in the amount of $1,709,727.72.
STANDING AND AD-HOC COMMITTEE REPORTS:
Cothing to report
BOARD MEMBER REPORTS:
Director Wallace reported that he attended the loop road proposal meeting Monday, November
30th. Nothing has been discussed in terms of costs involved with moving the utilities. Wallace plans to
attend the next meeting and report back to the Board.
President Voqelgesang reported he received a suggestion regarding the timing for new construction
capacity charges. Discussion took place regarding the District adjusting the schedule so that
capacity fees are paid at the time of connection rather than when the building plans are approved.
Staff reported the Administrative Code is written broadly and the schedule can be adjusted,
suggesting 10% of the fees be paid at the time of plan approval. Staff will also initiate communication
with City and County staff to be sure they understand the practice and coordinate on the process.
The Board directed staff to move forward on making this adjustment.
EL DORADO COUNTY WATER AGENCY PURVEYOR REPORT:
Richard Solbriq reported that he and Director Jones plan on attending the meeting on Wednesday,
December 9th.
GENERAL MANAGER REPORT:
Richard Solbrig reported on several items:
• Solbrig has inquired regarding John Mills' assistance on the meters loan appeal. John
indicated because the SWRCB is currently buried with water conservation efforts, much of the
work can be done through legislative efforts. Legislative efforts would be helpful so that when
the District presents to the SWRCB, they are familiar with the issue. He further mentioned that
REGULAR BOARD MEETING MINUTES- December 3, 2015 PAGE-3
the District should have the Urban Water Management Plan done before we proceed further
with the meters appeal.
• The District submitted comments, both as an individual organization, and with other Basin
public utility district's, regarding extending the water conservation regulation. There will be a
meeting Monday, December 7th, which Shannon Cotulla is planning to attend to represent the
District. The District water consumption increased 3% in November compared to 2013, due to
the early snow season, snowmaking and the weather.
• Don Jardine was reappointed by the Governor of California to the Lahontan Water Board.
• Solbrig and Tim Rieger are on standby for the Sierra-Tahoe Ready Mix concrete hearing on
December 10, 2015.
STAFF/ATTORNEY REPORTS:
SGMA Update-Attorney Kvistad reported that Attorney Herrema met with Shannon Cotulla and Ivo
Bergsohn at ACWA in preparation of the SAG meeting on December 16th regarding changes to the
Act.
Staff provided an update on the District utilizing KTM Consulting to act on the District's behalf in order
to challenge the rates proposed by Liberty Utilities regarding vegetation control. If Liberty's rates are
approved as proposed, it would increase the District's cost by approximately $50,000 per year.
ADJOURNMENT TO CLOSED SESSION: 2:42 p.m.
Pursuant to Section 54956.9(a) of the California Government code, Closed Session may be 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 CV06-0055-GW, United States District Court for the
Central District of California.
No reportable Board action
Pursuant to Section 54956.9(a) of the California Government Code, Closed Session may be 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
Pursuant to Section 54956.9(b) of the California Government Code, Closed Session may be held for
conference with Legal Counsel re: Liability Claim against STPUD received from Norman and Betty
Hagen.
o reportable Board action
REGULAR BOARD MEETING MINUTES- December 3, 2015 PAGE-4
go*ursuant to Section 54956.9(a) of the California Government Code, Closed Session may be held for
onference with legal counsel regarding existing litigation: STPUD vs. Lakeside Park Association, et al.,
County of El Dorado, Superior Court Case No. SC20010165.
No reportable Board action
ADJOURNMENT: 2:59 p.m.
Randy Vogelgesang, Board President
South Tahoe Public Utility District
Melonie Guttry, Clerk of th- :oard
South Tahoe Public Utility District
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