05-16-2019-� 1195{3
SMITH TAHOE PUBLIC UTILITY DISTRICT
Randy Vogelgesang, President BOARD MEMBERS Kelly Sheehan, Vice President
Chris Cefalu, Director James R. Jones, Director Nick Exline, Director
John Thiel, General Manager Shannon Cotulla, Assistant General Manager
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
May 16, 2019
MINUTES
The South Tahoe Public Utility District Board of Directors met in a regular session, 2:02 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, Exline
Staff: John Thiel, Paul Hughes, Shannon Cotulla, Gary Kvistad, Melonie Guttry, Bren Hoyle, Tim
Bledsoe, Jessica Henderson, Brian Bartlett, Chris Stanley, Jeremy Rutherdale, Nancy Hussmann, Chris
Skelly, Brian Bartlett, Shelly Thomsen, Susan Rasmussen, Brent Goligoski, Julie Ryan, Tiffany Racz, Jim
Kelly, Ryan Lee, Ivo Bergsohn, Jason Brand, Theresa Sherman, Steve Caswell, Cuz Cullen, Trevor
Coolidge, Doug Van Gordon
Guests: Larry Foster, John Cefalu, Jeff Tillman, Jennifer Lukins, Theresa Peshon, Kenny Curtzwiler, Mike
and Sharon Marlowe, Joe Cardinale, Heinz Neiger, Keith and Laura Wilkinson, Fran Papandrea, Sue
Quinn, Pat Okacza, Penny Weare, Erin Terry, Lynda Bourgeois
CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR:
None
COMMENTS FROM THE AUDIENCE:
Sue Quinn reported there is water flowing from a culvert at D Street and Tata Lane. Chris Stanlev
reported he will send District staff to investigate.
CONSENT CALENDAR:
Director Jones requested staff provide a presentation regarding the District's Geographic Information
System at a future Board meeting.
Moved Cefalu Second Sheehan Vo el elan Yes Cefalu Yes Jones Yes Sheehan Yes Exline Yes to
approve the Consent Calendar as presented.
REGULAR BOARD MEETING MINUTES May 16, 2019 PAGE - 2
a. RESOLUTION FOR CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES FEDERAL
EMERGENCY MANAGEMENT AGENCY HAZARD MITIGATION GRANT PROGRAM FUNDING
(Lynn Nolan, Grants Coordinator)
Adopted California Governor's Office of Emergency Services Federal Emergency
Management Agency Hazard Mitigation Grant Program Funding Resolution No. 3108-19
approving grant funding for the Paloma Well and Keller Booster Emergency Generators.
b. 2019 HEAVENLY TANK IMPROVEMENTS PROJECT
(Julie Ryan, Engineering Department Manger)
Approved the proposal from Bay Area Coating Consultants for coating inspection services in
an amount not to exceed $41,068.80.
C. GEOGRAPHIC INFORMATION SYSTEMS GIS DATA SHARING LICENSE AGREEMENT
(Jim Kelly, GIS Specialist and Steve Caswell, Principal Engineer)
1) Approved the Geographic Information Systems Data Sharing License Agreement; and, 2)
Authorized staff positions including Engineering Department Manager, Assistant General
Manager and/or General Manager to sign the Agreement on behalf of South Tahoe Public
Utility District.
d. SOUTH Y PCE REGIONAL INVESTIGATION
(Ivo Bergsohn, Hydrogeologist)
Entered into an Access Agreement with AECOM Technical Services, Inc., for temporary use of
the Tata Well Site as a staging area for plume characterization.
PROPOSITION 218 PUBLIC HEARING TO RECEIVE PUBLIC PROTESTS REGARDING PROPOSED WATER AND
SEWER RATE INCREASES
President Vogelgesang opened the Public Hearing at 2:07 p.m. to receive public protests regarding
the proposed water and sewer rate increases. Tim Bledsoe provided a PowerPoint presentation,
reporting that the Proposition 218 notices were mailed on March 29. He further provided an overview
of the public outreach efforts conducted throughout the Proposition 218 process. Several community
members asked questions related to the proposed rates and many stated their opposition to the
increases. The Board and staff provided answers to the questions and President Vogelgesang
expressed to the audience that the Board is listening to every comment. President Vo el esan
closed the Public Hearing at 3:50 p.m.
Tim Bledsoe reported that 425 sewer protests were received, of which 417 are valid protests for a total
of 2.28% sewer protests; and 414 water protests were received, of which 406 are valid protests for a
total of 2.85% water protests.
ITEMS FOR BOARD ACTION
a. Water and Sewer Rate Ordinance (Paul Hughes, Chief Financial Officer) -Paul Hughes reviewed
Ordinance No. 573-19, prepared for Board consideration to adopt the five-year rate schedule
for fiscal years 2020 through 2024, with up to 5% per year increase for the sewer fund and up to
6% per year increase for the water fund. This Ordinance is only to implement the fiscal year 2020
rates. The remaining four years are considered by the Board on an annual basis. Staff
recommends approval as presented. All five Board Members individually presented their
perspective on the rate increases and discussed the maximum proposed on the Proposition 218
notices. Staff provided comments focused on the proposed rate increases as well.
REGULAR BOARD MEETING MINUTES May 16, 2019 PAGE - 3
Moved Exllne Second Va el esan V❑ el esan Yes Cefalu Nv Jones No Sheehan
Yes/Exline Yes to enact Ordinance No. 573-19, an amendment to the South Tahoe Public Utility
District's Ordinance No. 464 superseding water and sewer rate Ordinance No. 557-14 in its
entirety, and incorporating a 4% districtwide water rate increase and a 5% districtwide sewer
rate increase in year 2020, of the five year rate schedule.
b. Fiscal Year 2019/20 Water Enterprise Fund Budget (Paul Hughes, Chief Financial Officer) — Paul Hughes
reviewed Resolution No. 3109-19, which staff recommends for Board approval.
Moved Va el esan Second Exline Vo el esan Yes Cefalu Yes Janes No Sheehan
Yes/Exline Yes to adopt Resolution No. 3109-19 adopting the Fiscal Year 2019/20 Water
Enterprise Fund Budget, and authorize staff to incorporate any adjustments or changes
necessary as a result of Board action.
C. Fiscal Year 2019/20 Sewer Enterprise Fund Budget (Paul Hughes, Chief Financial Officer) - Paul Hughes
reviewed Resolution No. 3110-19, which staff recommends for Board approval.
Moved Vo el esan Second Sheehan V❑ el esan Yes Cefalu Yes Jones No Sheehan
Yes/Exline Yes to adopt Resolution No. 3110-19 adopting the Fiscal Year 2019/20 Sewer
Enterprise Fund Budget.
Director Sheehan departed the meeting at 4:42 p.m.
d. Sewer Line Spot Repair and Lateral Abandonment Services (Doug van Gorden, Underground Repair
Sewer Supervisor) — Brent Goli oski and IV Jones presented information regarding the sewer line
spot repair and lateral abandonment services.
Moved Exline Second Va el esan Vo ei esan Yes Cefalu Yes Janes YesSheehan
Absent/Exline Yes to 1) Award bid to the lowest responsive, responsible bidder, Robotic Sewer
Solutions, Inc., in the amount $159,200; and, 2) Authorize staff to allow for changes (size
estimates or repair site additions) in the Contract not to exceed an additional 10% of the
Contract price.
e. Approve Payment of Claims (Debbie Henderson, Accounting Manager)
Moved Cefalu Second Vo el esan Vv el esan Yes Cefalu Yes Jones Yes Sheehan
Abserd/Exline Yes to approve Payment of Claims in the amount of $1,473,375.10
STANDING AND AD-HOC COMMITTEE REPORTS:
Director Exline reported there is a fire fuels presentation scheduled at Lake Tahoe Community
College on Saturday, May 18.
BOARD MEMBER REPORTS:
Director Jones reported he attended the Association of Water Agencies (ACWA) Conference and
will provide a report at the June 6 Board meeting.
EL DORADO COUNTY WATER AGENCY PURVEYOR REPORT:
John Thiel reported the District is working on an expanded project list for the Water Agency June 12
meeting.
REGULAR BOARD MEETING MINUTES May 16, 2019
GENERAL MANAGER REPORT:
John Thiel reported on several items:
PAGE - 4
• Provided a staffing update
• Announced he attended a Community Wildfire Planning meeting on April 25, with more than
100 community members in attendance
• He is scheduling a meeting with the United States Forest Service regarding preparedness
around District facilities
• Provided a public outreach update
STAFF/ATTORNEY REPORTS:
Chris Stanley and Jeremy Rutherdale provided details regarding a leak on Luther Pass Tank No. 2,
including steps taken to stop and repair the leak. Shannon Cotulla provided information regarding
the consequences of having this tank offline.
BREAK AND ADJOURN TO CLOSED SESSION: 5:15 p.m.
RECONVENE TO OPEN SESSION: 5:32
CLOSED SESSION:
a. Pursuant to Government Code Section 54956(d) (2)/Conference with Legal Counsel regarding
potential exposure to litigation (one case).
Reportable Board action
The Board adopted a legal budget for potential litigation.
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: EI Dorado County Superior
Court Case SC20190072, South Tahoe Public Utility District vs. Philip L. McNamar.
No reportable Board action
c. Pursuant to Government Code Section 549.57(a)/Conference with Labor Negotiators
regarding Memorandum of Understanding with Stationary Engineers, Local 39. Present at this
Closed Session will be Agency Negotiators: John Thiel, General Manager, Shannon Cotulla,
Assistant General Manager, Paul Hughes, Chief Financial Officer; and Nancy A. Hussmann,
Human Resources Director.
o reportable Board action
d. Pursuant to Government Code Section 549.57(a)/Conference with Labor Negotiators
regarding Memorandum of Understanding with the Management Group. Present at this
Closed Session will be Agency Negotiators: John Thiel, General Manager, Shannon Cotulla,
Assistant General Manager, Paul Hughes, Chief Financial Officer; and Nancy A. Hussmann,
Human Resources Director.
No reportable Board action
REGULAR BOARD MEETING MINUTES May 16, 2019
ADJOURNMENT: 5:33 p.m.
lo ie Guttry, Clerk of th Board
South Tahoe Public Utility District
PAGE - 5
Randy Vogelgesang, Board President
South Tahoe Public Utility District