03-15-18um
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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
March 15, 2018
MINUTES
The South Tahoe Public Utility District Board of Directors met in a regular session, 2:04 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, Wallace
Staff: Paul Hughes, Richard Solbrig, Gary Kvistad, Melonie Guttry, Bren Hoyle, Chris Stanley, Shelly
Thomsen, Marla Sharp, John Thiel, Trevor Coolidge, Tim Bledsoe, Tiffany Racz, Jason Brand, Julie Ryan,
Heidi Baugh, Brian Bartlett, Ivo Bergsohn
Guests: Austin Vinciguerra, Vinciguerra Construction
CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR:
Attorney Kylstad announced as a result of communications this week regarding the JM Pipe Case,
there are items that need to be discussed with the Board in Closed Session. This information came to
the District's attention after the Agenda was published and requires a 4/5 vote to add the following
two items to the Agenda under Closed Session:
13 b - 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;
13 c - Existing litigation: Los Angeles County Superior Court, Case No. BC459943, State of
Nevada, et al. v. J -M Manufacturing, et al.
Moved Vogelgesang/Second Sheehan/Vogelgesang Yes,/Cefalu Yes/Jones Yes/Sheehan
Yes/Wallace Yes to add JM Pipe existing litigation to Closed Session as Items 13 b and 13 c.
Director Wallace inquired regarding Consent Calendar Items 4 b - and 4 c - and Shelly Thomsen,
Water Conservation Specialist, addressed Director Wallace's concerns.
REGULAR BOARD MEETING MINUTES - March 15, 2018
CONSENT CALENDAR:
PAGE - 2
One change was announced to Action Item 4 e - Diamond Valley Ranch Irrigation Improvement
Project - Phase 1, changing EI Dorado County to Alpine County.
Moved Cefalu Second Sheehan /Vog e! es ang Yes Cefalu Yes/J ones Yes Sheehan Yes Wallace Yes
to approve the Consent Calendar with changes as presented.
a. TEMPORARY HELP FOR UNDERGROUND REPAIR, WATER
(Tony Prieto, Supervisor, Underground Repair, Water and Chris Stanley, Manager of Field Operations)
Approved hiring of four temporary employees for Underground Repair Water, in the estimated
amount of $83,000.
b. TEMPORARY WATER EDUCATOR (Shelly Thomsen, Water Conservation Specialist)
Approved a Contract with Blue Ribbon Personnel Services for one temporary Water Educator,
in the estimated amount of $7,000.
C. TEMPORARY WATER EFFICIENCY TECHNICIAN (Shelly Thomsen, Water Conservation Specialist)
Approved a Contract with Blue Ribbon Personnel Services for one temporary Water Efficiency
Technician, in the estimated amount of $35,000.
d. ALPINE COUNTY'S SUMMER 2018 FISH PURCHASE
(Jim Hilton, Water Reuse Manager and Heidi Baugh, Contracts Administrator)
Authorized payment to Alpine County in the amount of $56,250, to purchase fish for the
Summer 2018 planting season.
e. DIAMOND VALLEY RANCH IRRIGATION IMPROVEMENTS PROJECT- PHASE I
(Ivo Bergsohn, Hydrogeologist)
1) Approved Change Order No. 8 to Thomas Haen Company, Inc., in the amount of
$14,876.03; 2) Approved the Partial Closeout Agreement and Release of Claims for Thomas
Haen Company, Inc.; and, 3) Authorized staff to file a Notice of Completion with the Alpine
County Clerk for the Diamond Valley Ranch Irrigation Improvements Project - Phase 1.
F. REGULAR BOARD MEETING MINUTES: March -11, 2018
(Melonie Guttry, Executive Services Manager/Clerk of the Board)
Approved March 1, 2018, Minutes
ITEMS FOR BOARD ACTION
a. Al Tahoe Sewer Pump Emergency Pump Repair/Replacement (Chris Stanley, Manager of Field
Operations) -Chris Stanley reported staff is awaiting the arrival of parts and therefore is requesting
a continuance of the emergency item. There is a meeting scheduled for Wednesday, March 21,
2018, regarding the project.
Moved Wallace Second Cefalu Vo el esan Yes Cefalu Yes Jones Yes Sheehan Yes Wallace
Yes to continue the emergency action to repair Al Tahoe Sewer Pump #2, pursuant to
Resolution No. 3075-17.
b. Gondola Estates - Grant of Easement (Tim Bledsoe, Manager of Customer Service) — Tim Bledsoe
provided details regarding the Easement. Attorney Kvistad reported the attachment has been
slightly modified with respect to the scope of the easement area.
REGULAR BOARD MEETING MINUTES - March 15, 2018
PAGE - 3
Moved Sheehan/Second Wallace Vogelgesong Yes Cefalu Yes/Jones Yes/Sheehan
Yes/Wallace Yes to authorize execution of an acceptance of a Grant of Easement from
Gondola Vista Development Company, LLC, for access to new sewer and water mains to be
dedicated to the District and for access to the District's Stateline Water Tanks located on an
adjacent property.
C. Gondola Estates - Sewer and Water Main Extension (Tim Bledsoe, Manager of Customer Service) -Tim
Bledsoe provided an overview of the mainline extension. Attorney Kvistad explained this main
extension is being completed a little differently. Normally the Agreement would be executed
prior to construction of the facilities, but the developer requested dedication to the District
when construction was about to commence.
Moved Wallace Second Sheehan Vo el esan Yes Cefalu Yes Jones Yes Sheehan
Yes/Wallace Yes to authorize execution of a Sewer and Water Main Extension Agreement with
Gondola Vista Development Company, LLC, for sewer and water service to the Gondola
Estates Project located in the City of South Lake Tahoe, County of EI Dorado, State of California,
commonly known as Assessor's Parcel Numbers 29-441-21 and 29-441-15.
d. Water Meter Installation Project Phase IV (Trevor Coolidge, Associate Engineer) -Trevor Coolidge
reported that on March 6, 2018, at 2:00 p.m., two bids for the Project were received by the
District. The apparent low bid of $3,673,207 was from Vinciguerra Construction (Vinciguerra) and
a second bid was received from MKD Construction, for $4,795,490. The engineer's estimate was
$3,988,000. Staff has reviewed Vinciguerra's bid for conformance with Contractual and
Disadvantaged Business Enterprise (DBE) Good Faith Effort (GFE) requirements, in addition to
reviewing any bid irregularities. On March 12, 2018, the District received a "Formal Bid Advisory"
from the Foundation for Fair Contracting (FFC), which advised the District on pending potential
wage violations being investigated by the Department of Industrial Relations against
Vinciguerra. Staff, in consultation with legal counsel, reviewed both the "Formal Bid Advisory"
letter and supporting information and determined that the FFC did not have standing to file a
protest and that the alleged violations would not impact Vinciguerra's ability to complete the
District's Water Meter Installations Project. Based on staff's review of Vinciguerra's bid package
and confirmed conformance with contractual and DBE requirements, staff recommends
awarding the Contract to Vinciguerra Construction.
Maved Sheehan Second Cefalu Vo el esan Yes Cefalu Yes Jones Yes Sheehan Yes Wallace
Yes to award a construction Contract for Phase IV of the Water Meter Installation Project to the
lowest responsive, responsible bidder, Vinciguerra Construction, in the amount of $3,673,207.
e. Telephone System Upgrade Project (Brian Bartlett, Network Telecomm System Administrator) — Brian Bartlett
provided a report regarding the District's current telephone system including the hardware and
software.
Moved Sheehan Second Wallace Vo el esan Yes Cefalu Yes .cones Yes Sheehan
Yes Wallace Yes to find Mitel to be the sole brand for the District's telephone system upgrade
project.
Moved Sheehan Second Wallace Vo el esan Yes Cefalu Yes .cones Yes Sheehan
Yes Wallace Yes to authorize staff to request bids for upgrading the District's telephone system.
REGULAR BOARD MEETING MINUTES - March 15, 2018
e. Approve Payment of Claims (Debbie Henderson, Accounting Manager)
PAGE - 4
Moved Sheehan Second Vo el esan Vo el esan Yes Cefaiu Yes Jones Yes Sheehan
Yes/Wallace Yes to approve Payment of Claims in the amount of $1,589,785.54.
STANDING AND AD-HOC COMMITTEE REPORTS:
President Vogelg ecessang reported that he and Richard Solbrig met with the Ad-hoc City Council
Committee discussing several items including: workforce housing, PCE, Snow Globe and Vacation
Home Rentals. Richard Solbrig reported he invited Lahontan to participate in an Ad-hoc City Council
Committee meeting to discuss PCE issues. Director Wallace added discussion regarding transferring
of sewer units in support of workforce housing. Attorney Kvistad stated that if sewer units are used for
qualified housing, it could be required that these units be transferred back to the District at no cost
and applied to qualified housing. Richard Solbrig added the City recently completed a
communications study that indicates their system is completely outdated. The City is proposing that
any new system consist of a shared system with the District and other agencies. Director Wallace
inquired regarding street paving within the City and John Thiel reported that the District's Engineering
Department is working with the City's Public Works Department regarding paving.
Director Wallace and Director Cefalu reported regarding the Finance Committee Meeting on
Tuesday, March 6, 2018, including the overall strategy for the next ten years including the next
potential Prop 218 process. A Board Workshop is scheduled for Tuesday, March 20, 2018, at 2:00 p.m.
Paul Hughes requested the Board review the workshop information in advance of the meeting.
BOARD MEMBER REPORTS:
Director Jones provided a report regarding the California Association of Sanitation
Agencies/Association of California Water Agencies Conferences during the week of February 26,
2018, in Washington, D.C.
EL DORADO COUNTY WATER AGENCY PURVEYOR REPORT:
Director Sheehan reported she and Richard Solbrig attended the meeting on March 14 at EI Dorado
County Water Agency's (EDCWA) new offices. Richard Solbrig reported regarding the EDCWA
General Manager's five-year Contract and West Slope Storm Water Plan. There is no April meeting
scheduled.
GENERAL MANAGER REPORT:
Richard Solbrig reported on several items:
The Tahoe Prosperity Center has set a goal to raise $100,000 this year and $100,000 next year in
order to hire a housing coordinator to expand workforce and low income housing. They are
requesting contributions from several agencies including the District. The Board discussed that
the District's contribution will be through transfer fees, the District's Connection Fee Ordinance
which has already been modified and staff time. Attorney Kvistad reported that a contribution
to Tahoe Prosperity Center would be considered a gift of public funds and the District's mission
is water and wastewater. Paul Hughes reported the Prosperity Center has a Workforce Housing
meeting set for April 16, which Director Wallace and Director Cefalu will attend.
STAFF ATTORNEY REPORTS:
a. The State Water Resources Control Board is reviewing water allotments and staff is
working with counsel on this issue. Attorney Kvistad added the State Board is reviewing
applications and permits in order to quantify the surface water being diverted.
REGULAR BOARD MEETING MINUTES - March 15, 2018
PAGE - 5
b. The District is continuing to work toward a social media presence and is developing a
policy.
C. The District and Lake Valley Fire Department are working together to research the
possibility of a new firehouse located on District property.
d. EI Dorado County Sheriff's Department has suggested all emergency communications
run through them
e. Melonie Guttry reported the Board Meeting Youtube video views have been tracked
over the past seven months and there have been 188 views.
f. Shelly Thomsen shared information regarding the Water Conservation Program and in
particular, pharmaceuticals and items that should not be flushed. She is working with
several agencies to get this information disseminated.
ADJOURNMENT TO CLOSED SESSION: 4:07 pm
RECONVENED TO OPEN SESSION: 4:29 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: EI Dorado County Superior
Court Case SC20170130, Gregory Stevenson vs. South Tahoe Public Utility District.
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 reportabie Board action
C. 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
ADJOURNMENT: 4:30 p.m.
Randy Vogelgesang, Board President
South Tahoe Public Utility District
Melonie Guttry, Clerk of the Board
South Tahoe Public Utility District