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Minutes 01-19-2017SOUTH 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 19, 2017 MINUTES The South Tahoe Public Utility District Board of Directors met in a regular session, 2:13 p.m., at the District Office, located at 1275 Meadow Crest Drive, South Lake Tahoe, California. ROLL CALL: Board of Directors: President Vogelgesang, Sheehan, Wallace Absent: Directors Cefalu and Jones Staff: Paul Hughes, Richard Solbrig, Shannon Cotulla, Gary Kvistad, Melonie Guttry, Chris Stanley, Lynn Nolan, Jim Hilton, Brent Goligoski, Bren Hoyle, Donielle Morse, Tim Bledsoe, Trevor Coolidge, Ivo Bergsohn, John Thiel, Julie Ryan, Ross Cole, Cuz Cullen, Doug Nurock, Jason Brand Guests: Robert Hopkins, Douglas County Sewer Improvement District; Kent Neddenriep, R.O. Anderson Engineering; Kae Reed, Lake Tahoe News CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR: CONSENT CALENDAR: Moved Wallace Second Sheehan Vo el esan Yes Cefalu Absent Janes Absent Sheehan Yes/Wallace Yes to approve the Consent Calendar as presented. a. BUREAU OF RECLAMATION 2017 WATERSMART SMALL-SCALE WATER EFFICIENCY PROJECTS GRANT (Lynn Nolan, Grants Coordinator) Adopted Bureau of Reclamation WaterSMART Small -Scale Water Efficiency Projects Grant Program Resolution No. 3048-17 approving grant funding for a pressure reducing valve program. b. DIAMOND VALLEY RANCH IRRIGATION IMPROVEMENT (Ivo Bergsohn, Hydrogeologist) Accepted Contract Change Request No. 13 from Thomas Haen Company, Inc., extending the referenced project contract time by ninety- nine (99) calendar days. REGULAR BOARD MEETING MINUTES - January 19, 2017 PAGE - 2 C. METER MOBILE READING UNITS MXU'S AND WATER METERS (Tim Bledsoe, Customer Services Manager and James Cullen, Inspection Supervisor) (1) Authorized exception to bidding procedures as outlined in the Purchasing Policy for a sole source purchase of standardized supplies; and, (2) Authorized purchase of Sensus MXU's, meters and parts from Western Nevada Supply in an estimated amount of $50,044.50, including tax. d. REGULAR BOARD MEETING MINUTES: Januanr 5, 2017 (Melonie Guttry, Executive Services Manager/Clerk of the Board) Approved January 5, 2017, Minutes PRESENTATION Donielle Morse, Water Conservation Specialist, provided a comprehensive Water Conservation program update via PowerPoint Presentation. ITEMS FOR BOARD ACTION a. Water Meter Installation Project - Phases III -V (Trevor Coolidge, Associate Engineer) -Staff provided an overview of the project. Moved Wallace Second Sheehan Vo e! elan Yes Cefalu Absent Jones Absent Sheehan Yes/Wallace Yes to authorize staff to advertise for bids for water meter lids and service valve boxes required for the Water Meter Installation Project -Phases III -V. b. Wastewater System Interconnection and Mutual Aid and Assistance Agreement with the Douglas County Sewer Improvement District No. 1 (Shannon Cotulla, Assistant General Manager) - Staff provided an overview of the proposed Agreement with Douglas County Sewer Improvement District reporting this Agreement will be for emergency only and is similar to the Lukins Brothers and Tahoe Keys Water System Agreements. Robert Hopkins of Douglas County Sewer Improvement District thanked the Board for their consideration of this Agreement and staff for their assistance and cooperation in preparing ii. Moved Sheehan Second Waliace Va el esan Yes Cefalu Absenf Jones Absent Wallace Yes Sheehan Yes to approve a wastewater system interconnection and a Mutual Aide and Assistance Agreement between South Tahoe Public Utility District and the Douglas County Sewer Improvement District No. 1. C. Local Hazard Mitigation Plan 2017 Update (Shannon Cotulla, Assistant General Manager) Presidenf_V_og,elgesang opened the Public Hearing at 2:48 p.m. to receive public comments regarding the Local Hazard Mitigation Plan 2017 Update. Staff provided an overview of the Local Hazard Mitigation Plan 2017. The District is coordinating with EI Dorado County on the plan, which they will also adopt. This Plan is necessary in order to qualify for local Federal Emergency Management Agency funds in case of emergency. There were no public comments and the Public Hearing was closed at 2:53 p.m. Moved Sheehan Second Wallace Vv el gesan Yes Cefalu Absent Jones Absent Wallace Yes/Sheehan Yes to approve Resolution No. 3049-17 adopting the Local Hazard Mitigation Plan 2017 Update. REGULAR BOARD MEETING MINUTES - January 19, 2017 PAGE - 3 d. Setting Sewer Capacity Charges (Paul Hughes, Chief Financial Officer) - President Vogelgesan[T reported the Finance Committee met on January 5, and reviewed connection fees. Richard So_ Ibrig reported on Director Jones behalf requesting this item be postponed until after District staff provides presentations on the sewer and water Capital Improvement Program. The Board discussed the possible postponement of this item. Staff informed the Board that the annual impact of a 25% reduction to sewer capacity charges is approximately $125,000. Conversion to rate impact is an approximate 1 % change in sewer rates. In the last three years, the local market has improved and the tax revenue is expected offset the reduction. It is expected that building plans will start coming in for approval any day. The Board was reluctant to postpone this item as they believe this is a good decision for the community and it could spur development and may encourage other local permitting agencies to consider a reduction in their development related fee structures. Moved Wallace Second Sheehan Vo el esan Yes Cefalu Absent Jones Absent Wallace Yes/ Sheehan Yes to approve Ordinance No. 567-17 reducing sewer capacity charges, amending Administrative Code Section 4.5.7, and superseding Ordinance No. 560-15 in its entirety. e. Amendment to Legal Services Agreement (Richard Solbrig, General Manager) - Richard Solbrig provided an overview of the Agreement stating there has not been an adjustment since 2013. Attorney Kvistad stated Brownstein takes pride in representing the District and as a commitment, does not charge the District for travel time to and from Santa Barbara offices for meetings. Moved Sheehan Second Wallace Vo el esan Yes Cefalu Absent Jones Absent/Wallace Yes/Sheehan Yes to approve the attached Amended Agreement for legal services for Brownstein Hyatt Farber Schreck, LLP, effective January 2017. Approve Payment of Claims (Debbie Henderson, Accounting Manager) Moved Wallace Second Sheehan Vo el esan Yes Cefalu Absent Jones Absent Wallace Yes Sheehan Yes to approve Payment of Claims in the amount of $2,072,405.30. STANDING AND AD-HOC COMMITTEE REPORTS: Nothing to report BOARD MEMBER REPORTS: Director Wallace reported he met with the City of South Lake Tahoe Fire Chief to discuss the possibility of other countries purchasing local lumber. He is planning to discuss this issue with legislators during the Washington D.C. trip in February. He also reported attending a recent City of South Lake Tahoe Council meeting where the Council discussed several issues that were pointed at the District concerning road conditions and franchise fees. City Council has cancelled their representative to the District Board. Staff reported the District operated the Bijou Erosion Control pumps as agreed during the recent storms, but the pumps overflowed the erosion ponds, which required City staff to temporarily shut them down. EL DORADO COUNTY WATER AGENCY PURVEYOR REPORT: The January meeting was cancelled and the next meeting is February 8, 2017. REGULAR BOARD MEETING MINUTES -January 19, 2017 PAGE - 4 GENERAL MANAGER REPORT: Richard_Solbri9 reported on several items: The District has been contacted by California Association of Sanitation Agencies, who is requesting the District's participation in testing a hydrogen sulfide gas filter product versus an activated charcoal filter. The test is to determine if odor is controlled better with these materials. The District has agreed to run the program at two pump stations - the Tahoe Keys and Fallen Leaf Lake Pump Stations. The District will receive approximately $8,000 in grant funds and will cost staff time to participate. The District has authorized a $6,000 payment to file a protest for 2017 billing calculations, with the California Public Utilities Commission, as part of the A-3 large customer group for Liberty Utilities. To the District's knowledge, there were no wastewater spills in the two weeks of snow and rain events and no extensive water outage in spite of power outages due to the storms. The maximum flow that came into the District's Waste Water Treatment Plan on January 8 was a 24 hour total of 12.57 million gallons, which is double the 24 hour flow on July 4 with 100,000 people in the basin. Historically, this ranks as the 7th largest 24 hour flow into the plant. The largest was on February 17, 1986, with 17.29 million gallons. The District's Waste Discharge Requirements Permit allows for an instantaneous peak flow of 18.5 million gallons per day in our waste discharge requirements. The new Headworks project allows for up to 20 million gallons instantaneously, without a spill and the District is planning to have this permit updated. STAFF/ATTORNEY REPORTS: Shannon Cotulla recognized various staff for their efforts in the recent storms including Chris Stanley, Field Operations Manager, Jim Hilton, Water Reuse Manager and Doug Nurock, Operations Supervisor and their crews. Staff contended with massive pump flows, emergency generator usage to keep the plant aeration basin working, power outages around town and quick work to keep necessary equipment in working order. Everyone pulled together during these challenging times and the crews were recognized for being dedicated and doing an excellent job. Paul Hughes and Tim Bledsoe reported Senate Bill 1069 impacts low income housing as well as ancillary dwellings (i.e. mother-in-law units, etc.) The Bill does not apply to special districts, and therefore, does not apply to South Tahoe Public Utility District. Regardless, the Board is interested in potentially complying, which would require an amendment to the District's Administrative Code. District staff is communicating with the City of South Lake Tahoe Building Department and will keep the Board updated. ADJOURNMENT TO CLOSED SESSION: Closed session was postponed until February 2, 2017. ADJOURNMENT: 4:04 p.m. Mclonie Guttry, Clerk of 5thecard South Tahoe Public Utility District Randy Vogelgesang, Board President South Tahoe Public Utility District