08-20-2020i
n"Or 1950
SOUTH TAHOE PUBLIC UTILITY DISTRICT
Randy Vogelgesang, President BOARD MEMBERS Kelly Sheehan, Vice President
Chris Cefalu, Director Duane Wallace, 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
August 20, 2020
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, Wallace, Sheehan
Via Conference Call: Director Exline
Staff: John Thiel, Paul Hughes, Shannon Cotulla, Melonie Guttry, Tim Bledsoe, Shelly Thompson, Chris
Skelly, Julie Ryan, Jim Hilton
Via Conference Call: Gary Kvistad, Liz Kauffman, Trevor Coolidge, Ryan Lee, Heidi Baugh, Jessica
Henderson, Brent Goligoski
Guests Via Conference Call: Kristi and Christoph Castro, Scott Bangham, Amy Laverdier, Morino
Calonico Simkins, Christmas Valley Home Owner's Association, David Peterson, Shane Romsos, Paula
Peterson
CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR:
None
CONSENT CALENDAR:
Moved Wallace/Second Sheehan/Vogelgesang Yes/Cefalu Yes/Sheehan Yes/Exline Yes to approve
the Consent Calendar as presented.
a. CALIPERS REQUIRED PAY LISTING BY POSITION
(Debbie Henderson, Accounting Manager)
Adopted Resolution No. 3148-20 which incorporates the Pay Listing by Position for the pay
listing effective June 25, 2020.
b. AL TAHOE FORCE MAIN BYPASS STATION
(Julie Ryan, Engineering Department Manager and Tim Bledsoe, Manager of Customer Service)
Authorized staff to enter into a Reimbursement Agreement with John Shearer to replace
temporary pavement patch with a permanent pavement section in the amount of $29,070 for
3,060 square feet, with potential minor modifications to be made by staff.
REGULAR BOARD MEETING MINUTES August 20, 2020 PAGE - 2
C. INNOVYZE SOFTWARE UPGRADES
(Adrian Combes, Senior Engineer)
Authorized the purchase of Budgeted Hydraulic Modeling Software Replacement and annual
maintenance in the amount of $13,01 1.26.
d. AERATION BASIN NO. 2 COATING REPAIRS
(Stephen Caswell, Principal Engineer)
Approved an exception to the District's Purchasing Policy and allow Sole Source Procurement
of repairs on Aeration Basin No. 2 by Farr Construction in an amount not to exceed $31,052
e. SEWER HYDRAULIC MODELING SUPPORT SERVICES
(Brent Goligoski, Associate Engineer)
1) Approved the Proposal from Carollo Engineers, Inc., in the amount of $41,400, to provide as -
needed hydraulic modeling services for the sewer system; and, 2) Authorized the General
Manager to execute Task Order No. 21 to the Master Services Agreement with Carollo
Engineers, Inc.
REGULAR BOARD MEETING MINUTES: August 6, 2020
(Melonie Guttry, Executive Services Manager/Clerk of the Board)
Approved August 6, 2020, Minutes
ITEMS FOR BOARD ACTION
a. Christmas Valley Acres Homeowners' Association Meter Project (Tim Bledsoe, Manager of Customer
service) -Tim Bledsoe provided details regarding the Christmas Valley Acres Homeowner's
Association (HOA) metering issue and cited District Administrative Code Section 3.1.18, which
states that common interest developments managed by HOA's will be master metered. This is
consistent with District practice when installing master meters for other HOA's.
Christogh Castro, President of Christmas Valley Acres HOA, presented several concerns
regarding the HOA being master metered including a misguided letter from the District, HOA
units being individually owned with individual water lines, and missed conservation
opportunities. He further clarified that the HOA's common areas are not irrigated as they are
naturally forested.
Kristi Castro, HOA Treasurer, is challenging the District's definition of "Owner" pertaining to the
District's Administrative Code 1.1.97.
Scott Bangham is requesting that single meters be installed at each home within the Christmas
Valley Acres HOA.
Amy laverdier is requesting individual meters on all units and does not wish to split the water bill
with other homeowners.
Morino Colonico Simkins expressed frustration over a master meter, which will not offer any
control over water use.
Tim Bledsoe provided details regarding the letter mailed from the District to the home owners
from the water meter installation coordinator. Paul Hughes requested Attorney Kvistad provide
some details regarding the District's Administrative Code. Attorney Kvistad further explained the
differences between Non Common developments without an HOA versus HOA developments
and that in an HOA situation, the code is written because there is common area managed by
the HOA. In addition, the Christmas Valley Acres HOA water lines are estimated to have been
REGULAR BOARD MEETING MINUTES August 20, 2020 PAGE - 3
installed in approximately 1976 when the complex was built, and the District does not have
authorization to work on those pipes. It would be difficult to consider taking ownership of those
lines in their condition. Repairing and replacing those lines would be cost prohibitive. The
Administrative Code doesn't provide for lines to common area, and all HOA's are treated the
same in the Administrative Code. Meters are installed on the property line, but everything
behind the meter is private property. The Board reviewed a document distributed by the
Christmas Valley Acres HOA titled Christmas Valley Acres Townhomes 3025 Christmas Valley
Road SILT. Tim Bledsoe and Director Cefalu reported regarding the discussion that took place at
the Ad -Hoc Committee that reviewed this issue on August 17, 2020. Of all the options discussed,
submeters seem to be the most cost equitable solution. John Thiel reported the cost is
approximately $1,000 per unit to install individual meters in the each unit and the District does
not need to take responsibility for the asset. Although the District is empathetic to the HOA's
desire to be exempt from this process, the District is under mandate from the state to install
meters and demonstrate fairness to all HOA's. After a lengthy discussion, The Board directed
staff to complete the 8-inch meter installation at the Christmas Valley Acres HOA, monitor the
usage and billing for one year, while the home owners are billed individually at the base rate,
and after the one year evaluation, staff adjust meter size billing to ensure cost parity.
b. 2020 Diamond Valley Ranch Hay Barn and Equipment Storage Facility Project (Stephen Caswell,
Principal Engineer) — Julie Ryan provided details regarding the 2020 Diamond Valley Ranch Hay
Barn and Equipment Storage Facility Project. The District engineers believe there are plans that
could be value engineered and re -bid later this fall.
Moved Sheehan/Second Wallace/Vogelgesang Yes/Cefalu Yes/Sheehan Yes/Exline Yes to
reject all bids for the 2020 Diamond Valley Ranch Hay Barn and Equipment Storage Facility
Project.
C. Fiscal Year 2020/21 Amended Sewer Enterprise Fund Budget (Paul Hughes, Chief Financial Officer) —
Paul Hughes reported the Fiscal Year 2020/21 budget was adopted in May. At that time staff
reported they would bring forward an amended budget to offset some of the revenue
reductions due to COVID-19. All departments reviewed budgets to make adjustments to non-
critical expenses, which are detailed in the Board packets, and which reduced the operations
and maintenance sewer fund by $881,250 or 1 1.6%, the capital budget by $3,746,500 or 32.8%;
operations and maintenance water fund reduced by $215,025 or 4.4%; and capital budget
reduction of $421,000 or 5.6%; totaling the district wide operations and maintenance budget by
$1,096,275 and capital reduction fund by $4,167,500.
Moved Sheehan/Second Cefalu/Vogelgesang Yes/Cefalu Yes/Sheehan Yes/Exline Yes to
adopt Resolution No. 3149-20 adopting the amended Fiscal Year 2020/21 Sewer Enterprise Fund
Budget, and superseding Resolution No. 3141-20 in its entirety.
d. Fiscal Year 2020/21 Amended Water Enterprise Fund Budget (Paul Hughes, Chief Financial Officer)
Moved Sheehan/Second Cefalu/Vogelgesang Yes/Cefalu Yes/Sheehan Yes/Exline Yes to
adopt Resolution No. 3150-20 adopting the amended Fiscal Year 2020/21 Water Enterprise Fund
Budget, and superseding Resolution No. 3142-20 in its entirety.
REGULAR BOARD MEETING MINUTES August 20, 2020 PAGE - 4
e. COVID-19 Customer Assistance Program (John Thiel, General Manager) — John Thiel provided
information regarding the COVID-19 Customer Assistance Program details. The COVID-19
response to date has twice waived late fees and penalties and in August, the District waived
sending the Tax Roll to El Dorado County. John Thielpresented numbers for the proposed Local
50 Program. Shelly Thomson provided a sample form that could be filled out online or over the
phone and addressed questions from the Board. Tim Bledsoe reported this program will create
more work for the Customer Service Department. The District will be flexible with the opt -in
program. Attorney Kvlstad commented that a change to the Administrative Code will need to
happen in order for this to occur, unless there is an exception for a temporary basis, which
Attorney Kvistad will review. The Board directed staff to implement the Local 50 Program for
sewer customers with a simple opt -in form, which will be online and via phone call.
Moved Wallace/Second Cefalu/Vogel esang YeslCefalu Yes/Sheehan Yes/Exline Yes to
allocate up to $1.1 million for funding for the Local 50 Program for sewer customers with a simple
opt -in form, and staff will bring a Resolution forward at the September 3, 2020, Board meeting to
formally adopt the procedures.
Approve Payment of Claims (Debbie Henderson, Accounting Manager)
Moved Sheehan/Second Cefalu/Voaelgesana YeslCefalu Yes/Sheehan YeslExline Yes to
approve Payment of Claims in the amount of $1,675,704.66.
STANDING AND AD -HOC COMMITTEE REPORTS:
President Vogelgesang and John Thiel provided details regarding the City Ad -Hoc Committee
Meeting of August 20, 2020.
Director Exline reported regarding the Workforce Housing Committee Meeting on August 11, 2020.
BOARD MEMBER REPORTS:
Director Wallace reported regarding several proposed affordable housing developments throughout
the South Shore.
Director Exline reported that the City's Climate Action Plan is on the website for comment.
EL DORADO WATER AGENCY PURVEYOR REPORT:
Director Sheehan reported three staff members presented at the virtual meeting on August 12, 2020.
GENERAL MANAGER REPORT:
John Thiel reported on several items:
• Provided a staffing report
• There have been no confirmed COVID-19 cases at the District. Overall there have been 1 1
potential exposures, but in all cases, they isolated at home eliminating risk to other staff and all
tests to date have back negative.
STAFF/ATTORNEY REPORTS:
Melonie Guttry provided an Elections update reporting the seven candidates running for office in
November.
Shannon Cotulla provided a report regarding the State Water Resource Control Board Water Loss
Regulations.
REGULAR BOARD MEETING MINUTES August 20, 2020 PAGE - 5
BREAK AND ADJOURN TO CLOSED SESSION: 4:17 p.m.
RECONVENE TO OPEN SESSION: 4:55 p.m.
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 United States District Court,
Case No. 2:20-CV-01514-WBS-CKD, Alpine County v. South Tahoe Public Utility District; et al.
No reportable Board action
b. Pursuant to Government Code Section 54956.9(c)/Conference with Legal Counsel regarding
Potential Initiation of Litigation (one case).
No reportable Board action
ADJOURNMENT: 4:56 p.m.
4WL Randy Vogelgesang, Board President
South Tahoe Public Utility District
Melonie Guttry, Clerk of the B and
South Tahoe Public Utility District