Minutes 05-18-2017-r 795Vt
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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
May 18, 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 Cefalu, Jones, Sheehan
Absent: Director Wallace
Staff: Paul Hughes, Richard Solbrig, Gary Kvistad, Melonie Guttry, Marla Sharp, Julie Ryan, John Thiel,
IV Jones, Bren Hoyle, Chris Stanley, Nancy Hussmann, Lynn Nolan, Linda Brown, Debbie Henderson,
Cuz Cullen, Ryan Lee
Guests: Eric Schafer
CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR:
CONSENT CALENDAR:
Moved Cefalu Second Sheehan/Vogelgesang Yes Cefalu Yes Jones Yes Sheehan Yes Wallace
Absent to approve the Consent Calendar as presented.
a. RESOLUTION TO ACCEPT FUNDING FROM STATE WATER RESOURCES CONTROL BOARD
PROPOSITION 1 GROUNDWATER PLANNING GRANT (Lynn Nolan, Grants Coordinator)
Adopted Resolution No. 3059-17 to Accept Grant Award for Groundwater Planning.
b. REGULAR BOARD MEETING MINUTES: May 4 2017
(Melonie Guttry, Executive Services Manager/Clerk of the Board)
Approved May 4, 2017, Minutes
ITEMS FOR BOARD ACTION
a. Tahoe Keys Sewer Pipe Emergency Repair and Replacement (John Thiel, Engineering Department
Manager) -Staff provided an update on the project including a PowerPoint presentation. Staff is
anticipating the project will be complete by Friday, May 26, and reported no spills. Staff further
REGULAR BOARD MEETING MINUTES - May 18, 2017
PAGE - 2
provided a video showing damaged pipe that has since been discovered in another section.
This damage is separate from this project and will be brought back to the Board once
evaluated. Director Jones reported that he attended a session at the recent Association of
California Water Agencies (ACWA) Conference indicating 47 years is the average pipe life
expectancy.
Moved Sheehan Second Cefalu Vo et esan Yes Cefalu Yes Jones Yes Sheehan Yes Wallace
Absent to continue 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. 2017 Fire Hydrant Service Expansion/Large Meter Replacement Project (Julie Ryan, Principal Engineer)
-Staff provided information regarding the project.
Moved Cefaiu Second Sheehan Vo el esan Yes Cefaiu Yes Jones Yes Sheehan Yes Wallace
Absent to waive the minor irregularity and award the project to the lowest responsive,
responsible bidder White Rock Construction Company, Inc., in the amount of $1,391,880.
c. Water System Monitoring and Supervisory Control and Data Acquisition (SCADA)
Communications Upgrade (Julie Ryan, Principal Engineer) -Staff provided a short history regarding
the SCADA System and details regarding how the system works and why the acquisition is
necessary.
Moved Jones Second Vo el esan Vo el esan Yes Cefalu Yes Jones Yes Sheehan
Yes Wallace Absent to authorize the District to: 1) Approve Proposal from Carollo Engineers for
engineering services in the amount not to exceed $439,576 to conduct a Communications
Study, perform Alternatives Evaluations and develop Contract Documents and; 2) Approve
Proposal from Systems Integrated for engineering services in the amount not to exceed $19,920
to conduct a Peer Review of a Communications Study Workplan and Communication Study
Technical Memorandum.
d. Fiscal Year 2017/18 Water and Sewer Service Charge Rates (Paul Hughes, Chief Financial Officer) —
Staff provided an overview of the 2017/2018 Water and Sewer Service Charge Rates, which
were developed to support the Capital Improvement Program. Director Jones expressed
concerns regarding the rate increases based on information learned at the Association of
California Water Agencies (ACWA) Conference and President Vogelgesang proposed staff
provide an update to the Board regarding this new information.
Moved Sheehan Second Cefalu Vo e! esan Yes Cefalu Yes Jones No Sheehan Yes Wallace
Absent to approve Resolution No. 3056-17 confirming the water and sewer service charge rates
for Fiscal Year 2017/18.
e. Fiscal Year 2017/18 Water Enterprise Fund Budget (Paul Hughes, Chief Financial Officer) — Staff
provided an overview of the proposed budget.
Moved Vo el esan Second Sheehan Vo of esan Yes Cefaiu Yes Jones No Sheehan
YesZWallace Absent to authorize the District to : 1)Adopt Resolution No. 3057-17 adopting the
Fiscal Year 2017/18 Water Enterprise Fund Budget and; 2) Authorize staff to incorporate any
adjustments or changes necessary as a result of Board action.
REGULAR BOARD MEETING MINUTES - May 18, 2017 PAGE - 3
Fiscal Year 2017/18 Sewer Enterprise Fund Budget (Paul Hughes, Chief Financial Officer) - Staff
provided an overview of the proposed budget.
Moved Cefalu Second Sheehan Vo el esan Yes Cefalu Yes Jones No Sheehan Yes Wallace
Absent to authorize the District to: 1) Adopt Resolution No. 3058-17 adopting the Fiscal Year
2017/18 Sewer Enterprise Fund Budget and; 2) Authorize staff to incorporate any adjustments or
changes necessary as a result of Board action.
g. Approve Payment of Claims (Debbie Henderson, Accounting Manager)
Moved Sheehan/Second efaIqVogeigesang Yes/Cefalu Yes/Jones Yes/Sheehan Yes/Wallace
Absent to approve Payment of Claims in the amount of $1,234,671.34.
STANDING AND AD-HOC COMMITTEE REPORTS:
President Vogelqesang provided information regarding the City of South Lake Tahoe Ad -Hoc
Committee meeting on May 4, 2017. The meeting was beneficial and meetings will continue on a
monthly basis to discuss issues in the community. A community member asked if the cutting fees that
the District pays the City are consistent with what other municipalities pay across the state? The Board
collectively suggested the Loop Road Project be added to the next committee Agenda.
Director Jones reported on the Operations Committee Meeting Monday, May 15. The site tour has
been rescheduled to June.
BOARD MEMBER REPORTS:
Director Jones provided information regarding the ACWA Conference in Monterey May 8 through 12.
He attended the conference with staff and will provide conference materials to Richard Solbriq for
interested Board Members.
EL DORADO COUNTY WATER AGENCY PURVEYOR REPORT:
Richard Solbrig reported the meeting was May 17, but, Director Wallace was unable to attend. There
was $401,000 in District projects on the Agenda for approval. The final budget will be approved on
June 14, when the District will also be reporting on the Groundwater Sustainability Plan.
GENERAL MANAGER REPORT:
Richard Solbrig reported on several items:
The month of March reports show zero water conservation reduction compared to 2013,
although April's reduction was 17.5%. The 2016 annual year report is 13.1 % less than compared
to 2013 and compared to 2007, water conservation was down 32.5% less. Permanent
conservation regulations are still being reviewed.
Richard Solbrig will appear on Lake Tahoe Television for next week to discuss two big projects,
The Tahoe Keys Emergency and Fallen Leaf Lake.
STAFF ATTORNEY REPORTS:
Richard Solbrig and Lynn Nolan attended a meeting regarding the firefighting partnership to discuss
how water infrastructure projects are prioritized and how to allow input from the fire departments.
Lynn is attending a meeting today regarding this same issue.
Staff provided an update on the Fallen Leaf Lake Project. Due to the Tahoe Keys Emergency, the
project is starting on May 22, a little later than anticipated.
REGULAR BOARD MEETING MINUTES - May 18, 2017 PAGE - 4
BREAK AND ADJOURNMENT TO CLOSED SESSION: 3:42 pm
RECONVENED TO OPEN SESSION: 5:05 p.m.
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 reportable 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; and Shannon Cotulla, Assistant General
Manager.
No reportable 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; and Shannon Cotulla, Assistant General
Manager.
No reportable Board action
ADJOURNMENT: 5:05 P.M.
Randy Vogelgesang, Board President
South Tahoe Public Utility District
Melonie Guttry, Clerk of the oard
South Tahoe Public Utility District