Minutes 06-01-2017SOUTH TAHOE PUBLIC UTILITY DISTRICT
Kicnara boiong, 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
June 1, 2017
MINUTES
The South Tahoe Public Utility District Board of Directors met in a regular session, 2:01 p.m., at the
District Office, located at 1275 Meadow Crest Drive, South Lake Tahoe, California.
ROLL CALL:
Board of Directors: President Vogelgesang, Directors Jones, Sheehan, Wallace
Absent: Director Cefalu
Staff: Paul Hughes, Richard Solbrig, Shannon Cotulla, Gary Kvistad, Melonie Guttry, Chris Stanley,
Marla Sharp, Chris Skelly, Brian Bartlett, Doug Van Gorden, Nancy Hussmann, Jeff Lee, Jessica
Henderson, Steve Caswell, Bren Hoyle, Jason Brand, Julie Ryan, Heidi Baugh, John Thiel, Trevor
Coolidge, Brent Goligoski, Tiffany Racz, Linda Brown
CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR:
CONSENT CALENDAR:
Moved Wallace Second Sheehan/Vogelgesang Yes Cefalu Absent Jones Yes Sheehan Yes Wallace
Yes to approve the Consent Calendar as presented.
a. SEWER ENTERPRISE 2017/18 APPROPRIATIONS SUBJECT TO LIMITATION
(Debbie Henderson, Accounting Manager)
Adopted Resolution No. 3060-17 setting the limitation on appropriations for Fiscal Year 2017/18.
b. PORTABLE GENERATOR RENTAL JANUARY FEBRUARY STORMS
(Jeff Lee, Manager of Plant Operations)
Authorized the District to: 1) Find that due to special circumstances, that it was not possible to
request bids to rent a large generator; 2) Approved payment to Cashman Equipment Inc., for
rental of a 500kw generator in the estimated amount of $32,211.
C. REGULAR BOARD MEETING MINUTES: May 18, 2017
(Melonie Guttry, Executive Services Manager/Clerk of the Board)
Approved May 18, 2017, Minutes
REGULAR BOARD MEETING MINUTES - June 1, 2017 PAGE - 2
PRESENTATION
President Vogelgesang presented the Award for Government Finance Officers Certificate of
Achievement for Excellence in Financial Reporting to the Accounting Department Staff,
congratulating them on their achievement.
ITEMS FOR BOARD ACTION
a. Tahoe Keys Sewer Pipe Emergency Repair and Replacement (John Thiel, Engineering Department
Manager) -Staff provided an update regarding the Tahoe Keys project. The project is complete
except for the median being restored today along with restoring some sod. Staff is still compiling
costs which will be reported at the June 15 Board Meeting.
Moved Wallace/Second Sheehan Vo elelan Yes Cefalu Absent Jones Yes Sheehan
Yes/Wallace Yes to terminate emergency action to repair and/or replace 80 linear feet of
sewer pipe near the Tahoe Keys Pump Station pursuant to Resolution No. 3054-17.
b. Sewer Repair, Lateral Abandonment and Cured -In -Place Pipe Sewer Lining Services (John Thiel,
Engineering Department Manager) - Staff provided a report regarding the sewer repair, lateral
abandonment and cured -in-place pipe sewer lining project. The District contacted eight
interested parties to bid the project and bids were opened at 11:30 this morning. Only one bid
was received which was from Hoffman Southwest Corporation (Hoffman), dba Professional Pipe
Services (Pro Pipe), but they did not bid on the cured -in-place pipe sewer lining portion. Staff
recommends approving Hoffman, dba Pro Pipe, for the repair in an amount not to exceed
$70,000.
Moved Wallace Second Sheehan Vo el elanYes Cefalu Absent Jones Yes/Sheehan
Yes/Wallace Yes to award bid to the lowest, responsive, responsible bidder Hoffman Southwest
Corporation, dba Professional Pipe Services, in the estimated amount of $70,000.
In consideration of the lack of interest in bidders, the criticality of the repair, the possibility of
obtaining a fair price from Hoffman Southwest Corporation, dba Professional Pipe Services, who
was the lowest bidder in four of the last five sewer line repair bids, and our familiarity of their
work, staff is asking the Board to authorize staff to negotiate with them to proceed with the
contract. Attorney Kvistad added that based on two items: 1) the District went out to bid and
with the lack of bids there is no assurance there will be more bids received; and 2) the work
needs to proceed; the Board may waive the competitive bid requirement for this work and
authorize staff to negotiate with Hoffman Southwest Corporation dba Professional Pipe Services.
Moved Wallace Second Sheehan Vo e! esan Yes Cefalu Absent/Jones Yes Sheehan
Yes/Wallace Yes to find that special circumstances exist: 1) the District went out to bid and with
the lack of bids there is no assurance there will be additional bids received; and, 2) the work
needs to proceed; and therefore the Board determines that it is in the best interests of the
District to not go out to rebid and to waive the competitive bid requirement for this work,
authorizing staff to negotiate a contract with Hoffman Southwest Corporation, dba Professional
Pipe Services, in an amount not to exceed $120,000.
C. Polymer Contract Renewal (Jeff Lee, Manager of Plant Operations) - Staff provided a report regarding
the Polydyne, Inc., contract.
REGULAR BOARD MEETING MINUTES - June 1, 2017
PAGE - 3
Moved Sheehan Second Wallace Vo el esan Yes Cefalu Absent/Jones Yes Sheehan
Yes/Wallace Yes to authorize one-year renewal option of contract with Polydyne, Inc., in the
estimated amount of $87,358.31.
d. Water Meter Installation Project Phase III (Trevor Coolidge, Associate Engineer) - Staff provided a report
regarding the Water Meter Installation Project Phase III. The funding agreement is pending legal
review.
Moved Sheehan Second Wallace Vo of esan Yes Ce€olu Absent/Jones Yes Sheehan
Yes Wallace Yes to award project to the lowest responsive, responsible bidder, Vinciguerra
Construction, in the amount of $3,246,000.
e. Customer Engagement and Data Analytics (Chris Skelly, Information Technology Manager and Tim Bledsoe,
Customer service Manager) - Staff provided an overview of the WaterSmart Software proposal
process, indicating two proposals were received. Staff answered questions from the Board
regarding the proposed software.
Moved Wallace Second Sheehan Vo el esan Yes Ce€olu Absent/Jones Yes Sheehan
Yes/Wallace Yes to authorize contract with WaterSmart Software as lowest bidder to the
District's Request for Proposal for Customer Engagement and Data Analytics Software.
Mutual Aid and Assistance Agreement with Lakeside Park Association, Inc. (Paul Hughes, Chief
Financial officer) - Staff provided an overview of the Mutual Aide and Assistance Agreement.
Moved Wallace Second Sheehan Vo el esan Yes Ce€alu Absent/Jo ies Yes Sheehan
Yes Wallace Yes to approve a Mutual Aide and Assistance Agreement between South Tahoe
Public Utility District and Lakeside Park Association, Inc.
g. Inter -Fund Loan (Paul Hughes, Chief Financial officer) - Staff provided a report regarding the inter -fund
loan to be paid back by June 30, 2021, with interest of less than 1 %. The maximum term is 5
years.
Moved Vo el esan Second Sheehan Vo e€ esan Yes Cefalu Absenfi Jones Yes Sheehan
Yes/Wallace Yes to adopt Resolution No. 3061-17 approving a $3 million loan from the Sewer
Enterprise Fund to the Water Enterprise Fund.
h. 2017 Ponderosa Waterline/Meter Installation Project (Stephen Caswell, Senior Engineer) - Staff
provided an overview of the Ponderosa Waterline Meter Installation Project. The project is
funded through the drinking water state revolving fund. There were five contractors at the pre-
bid meeting, but only two bids received.
Moved Sheehan Second Vv el esan Vo el esan Yes Cefalu Absent/Jones Yes Sheehan
Yes/Wallace Yes to award project to the lowest responsive, responsible bidder, Sierra Nevada
Construction, Inc., in the amount of $1,164,007.
Approve Payment of Claims (Debbie Henderson, Accounting Manager)
Moved Sheehan Second Wal€ace Vo el esan Yes Cefalu Absent Jones Yes Sheehan
Yes Wallace Yes to approve Payment of Claims in the amount of $1,16€,007.
REGULAR BOARD MEETING MINUTES - June 1, 2017
PAGE - 4
STANDING AND AD-HOC COMMITTEE REPORTS:
President Vogglgesong announced Director Wallace is unable to attend the Ad-hoc City Council
meeting at 9 a.m. on June 2 at the City Offices and Director Sheehan will attend in his absence. The
Loop Road Project is currently on the committee meeting Agenda, as well as the City's recent
Resolution to be 100% green energy by 2030. Please contact Richard Svlbrig to add additional topics
to the Agenda.
BOARD MEMBER REPORTS:
Director Wallace reported he is attending the EI Dorado County Chamber legislative mixer in EI
Dorado Hills this afternoon. Director Jones reported he is attending the public hearing regarding
cloud seeding.
EL DORADO COUNTY WATER AGENCY PURVEYOR REPORT:
Director Wallace was unable to attend a special meeting on Tuesday, May 30. The EI Dorado County
Water Agency draft budget will be approved on June 14, which includes $401,000 in funding for the
District as well as submitting a Resolution to be the Groundwater Sustainability Agency for
management for fringe areas.
GENERAL MANAGER REPORT:
Richard Solbrig reported on several items:
• Richard Solbrig attended the South Garden Club Meeting on May 23 to present information
regarding the District. It was a very engaged group that asked good questions.
• Paul Hughes and Richard Solbrla will attend the South Lake Tahoe Rotary Club meeting on
June 7 to present information regarding the District.
• Staff recently visited Assemblyman Frank Bigelow's Office to discuss permanent water
conservation legislation and several Assembly Bills.
• District staff is working at Fallen Leaf Lake and staff provided an update on the work being
done there. Shannon Cotulla recognized the Underground, Pumps and Electrical crews along
with the Engineering Department and Field Operations staff for doing an excellent job.
• Richard So brig provided an update regarding the Lake Tahoe Restoration Act and progress
regarding the prioritization list of projects that comply with the perspective that fund fire
related projects.
• A Public Records Request has been received from Water Audit California.
• Staff is planning to attend the Tahoe Water Suppliers Association luncheon on Thursday, June
8, at Sand Harbor and Director Jones will also attend.
STAFFf ATTORNEY REPORTS:
Staff provided a report regarding work being done on the C -Line intertie.
As of May 31, staff identified a leak on the discharge line from Harvey Place Reservoir, which has
been reported to Lahontan. Flows were temporarily shut down from Harvey Place Reservoir and once
the line has been drained, staff will camera the line and make a recommendation to the Board.
ADJOURNMENT TO CLOSED SESSION: 3:19 p.m.
RECONVENED TO OPEN SESSION: 4:20 p.m.
REGULAR BOARD MEETING MINUTES - June 1, 2017 PAGE - 5
ACTION REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION
a. 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 rei2ortable Board action
b. 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
C. Pursuant to Government Code Section 54957(a)/Conference with Labor
Negotiators re: Memorandum of Understanding with Stationary Engineers, Local 39.
Present at this Closed Session will be Agency Negotiators: Richard Solbrig/General
Manager; Paul Hughes, Chief Financial Officer; Shannon Cotulla, Assistant General
Manager; and Nancy Hussmann, Human Resources Director.
No re ortable Board action
d. Pursuant to Government Code Section 54957(a)/Conference with Labor
Negotiators re: Memorandum of Understanding with the Management Group.
Present at this Closed Session will be Agency Negotiators: Richard Solbrig/General
Manager; Paul Hughes, Chief Financial Officer; Shannon Cotulla, Assistant General
Manager; and Nancy Hussmann, Human Resources Director.
No re ortable Board action
ADJOURNMENT: 4:20 p.m.
Randy Vogelgesang, Board President
South Tahoe Public Utility District
Melanie Guttry, Clerk of the Board
South Tahoe Public Utility District