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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
November 5, 2020
MINUTES
The South Tahoe Public Utility District Board of Directors met in a regular session, 2:00 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, Exline
Staff: John Thiel, Paul Hughes, Shannon Cotulla, Gary Kvistad, Melonie Guttry, Shelly Thomsen, Chris
Stanley, Liz Kauffman, Tim Bledsoe, Debbie Henderson
Via Conference Call: Adrian Commes, Brent Goligoski, Dan Arce, Heidi Baugh, Jeff Lee, Jeremy
Rutherdale, Jessica Henderson, Jim Kelly, Julie Ryan, Kim Garon, Linda Kosciolek, Marla Sharp, Ryan
Lee, Sara Lucero, Star Glaze, Stephen Caswell, Theresa Sherman, Trevor Coolidge, Mario
Mangiaracina, Shelley Alexander, Joseph Conti, Larry McDonough, Susan Rasmussen
Guests: Denver Williams, Seth Maurer, Travis Coombs, Nick Maurer, Travis Barnett, CORE/Prostar; Dave
Peterson
Via Conference Call: John Fredrich, Rick Lind, Steve Baugh, Taylor Bradshaw, Jerry Bindel, Richard
Solbrig
CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR:
President Vogelgesang announced that the Board would like to move the SEED Solar Project Staff
Report forward on the Agenda, just prior to Action Items.
CONSENT CALENDAR:
Moved Wallace/ Second Cefalu/Vogelgesang Yes/Cefalu Yes/Sheehan Yes/Wallace Yes/Exline Yes
to approve the Consent Calendar as presented.
a. ENVIRONMENTAL SCIENCE RESEARCH INSTITUTE (ESRI) GIS SMALL UTILITY ENTERPRISE LICENSE
AGREEMENT RENEWAL
(Chris Skelly, Information Technology Manager)
Authorized staff to renew the Small Utility Enterprise License Agreement for three additional
years with the ESRI for access to the ESRI term license software on an unlimited basis for the
amount of $75,000.
REGULAR BOARD MEETING MINUTES: November 5, 2020 PAGE - 2
b. CALPERS REQUIRED PAY LISTING BY POSITION
(Debbie Henderson, Accounting Manager)
Adopted Resolution No. 3155-20 which incorporates the Pay Listing by Position for the pay
listing effective October 1, 2020.
C. GENERAL MANAGER'S PURCHASING AUTHORITY
(Paul Hughes, Chief Financial Officer and Heidi Baugh, Purchasing Agent)
Adopted the Purchasing Policy Amendment increasing the General Manager's purchasing
authority to $75,000.
d. 2020 SEWER IMPROVEMENTS PROJECT
(Brent Goligoski, Associate Engineer)
Approved Project Closeout Agreement and Release of Claims with Burdick Excavating Co.,
Inc., for the 2020 Sewer Improvements Project.
e. FIRE VULNERABILITY ASSESSMENT OF WATER AND SEWER INFRASTRUCTURE
(Lynn Nolan, Grants Coordinator)
1) Approved Task Order No. 11 to Kennedy/Jenks Consultants in the amount of $75,000 for the
Fire Vulnerability Assessment for Water and Sewer Infrastructure; and, 2) Updated and
authorized staff to make any immaterial changes to Task Order No. 11 as staff deems
necessary.
f. CALIFORNIA ASSOCIATION OF SANITATION AGENCIES 2021 DUES
(John Thiel, General Manager)
Authorized 2021 California Association of Sanitation Agencies Membership Dues Renewal in
the amount of $17,100.
g. REGULAR BOARD MEETING MINUTES: October 15, 2020
(Melonie Guttry, Clerk of the Board)
Approved October 15, 2020, Minutes
STAFF ATTORNEY REPORTS
SEED Solar Project - (Julie Ryan, Engineering Department Manager) - Julie Ryan provided details regarding the
SEED Solar Project and introduced Denver Williams, of CORE/Prostar, provided a PowerPoint
presentation regarding the proposed solar project and addressed questions from the Board. Denver
Williams explained that Option 3 of the proposal is no longer viable as Liberty Utilities does not have
the appetite to take the additional energy and deliver it elsewhere. He guaranteed that the life of
the system operations is 30 years. Afltorney Kvistad commented that he is in contact with a consultant
who will review the numbers from this presentation. Paul Hughes will review the numbers as well. By
consensus, the Board would like to see an analysis of Options 2B and 2C.
ITEMS FOR BOARD ACTION
a. Reorganization Plan (Ad -Hoc Organizational Structure, Service and Efficiency Committee) - President
Vogelg ey_sanq announced that the Reorganization Report has been submitted for Board
Review and John Thiel provided a summary of the report along with a summary of comments
submitted by some of the District managers. President Vogelgesgag reported that having an
efficient organization is a service to the rate payers; in addition, he feels this proposed
structure gives the General Manager (GM) better overall knowledge of the District through
direct reporting. Director Cefolu reported that when the Board hired John Thiel as the GM, one
of his main topics to address was District reorganization and efficiency. In fact, eliminating the
REGULAR BOARD MEETING MINUTES: November 5, 2020 PAGE - 3
Assistant General Manager (AGM) position has been a Board consideration for several years,
even proposed when the former AGM resigned in 2014. The last reorganization that was done
at the District resulted in nothing implemented. The Board recognizes that change is hard, in
fact change is never easy, but the Board is directly responsible to the rate payers who are the
owners of the District. The Board takes the role of overseeing the finances of the District very
seriously. In 2008, the District reduced the Operations and Maintenance budget, but nothing
else.
Shannon Cofulla commented that he appreciates the opportunity to speak on the Agenda
item and applauds the Ad -Hoc Committee on addressing challenges. There is real value in
seeking organizational efficiencies, but he doesn't feel the process should be done
incrementally. He disagrees with aspects of the report, which do not consider the volume of
work done by the GM and AGM positions and the ultimate workload involved. He feels the
AGM's direct report staff have full workloads and that by eliminating the AGM position, will
result in work not being completed and the first thing to fall off will be interdepartmental
communication and coordination. The result may be inefficiency. He further provided
information regarding private and public case studies.
Dave Peterson commented that although he hasn't been involved in the discussions to date, it
is clear that lots of work has gone into the report and he supports it. He further provided some
perspectives from his private and public sector experience.
Richard Solbri_% Chris Stanley, Jeff Lee, and Director Exline spoke in support of keeping the
AGM position, recognizing such problematic outcomes as workload issues, the lack of staff
input, lack of time to digest the report, resulting inefficiencies, and loss of excellence as a
fundamental culture of the District. Duane Wallace commented that from an organizational
viewpoint, slowly creeping toward a decision is not always the optimal approach. He further
recognized that reorganizing has been discussed by the Board for the past two years.
Director Sheehan commented that any decision made today is not personal, and the Board
has a duty to the rate payers to be sure the District is run efficiently.
John Thiel added that it is within the purview of the Board to add and eliminate positions.
b. Approved Payment of Claims (Debbie Henderson, Accounting Manager)
Moved Sheehan/Second Cefalu/Vogelgesana Yes/Cefalu Yes/Sheehan Yes/Wallace
Yes/Exline Yes to approve Payment of Claims in the amount of $2,786,270.01.
STANDING AND AD -HOC COMMITTEE REPORTS:
a. Workforce Housing Committee Update -John Thiel provided a report regarding Workforce
Housing Committee progress. Staff is working to review privately owned sewer units that may
be transferred to programs such as this and AftorneY Kvlsfad has been requested to review
these details.
BOARD MEMBER REPORTS:
None
EL DORADO WATER AGENCY PURVEYOR REPORT:
Director Sheehan reported the next meeting is November 18, 2020.
GENERAL MANAGER REPORT:
John Thiel reported on several items:
0 Provided a staffing update
REGULAR BOARD MEETING MINUTES: November 5, 2020 PAGE - 4
Tahoe Water Suppliers Association has been recognized by the Tahoe Regional Planning
Agency
There is no COVID-19 sickness at the District and there are no employees out for COVID-10
precautions. The District crews are now on regular 10-hour schedules, and most office staff is
working regular schedules in the office.
STAFF/ATTORNEY REPORTS:
a. COVID-19 Relief Program Update -(Tim Bledsoe, Manager of customer service) -Tim Bledsoe reported
as of October 30, 2020, 739 customers have taken advantage of the program totaling
$161,400 and addressed questions from the Board. Customers are requesting the rate relief
program be extended through the end of the year. The Board discussed the program and
directed staff to bring an Action Item approving the extension of the program to the
November 19, 2020, Board Meeting.
BREAK AND ADJOURN TO CLOSED SESSION: 4:08 p.m.
RECONVENE TO OPEN SESSION: 5:02 p.m.
a. Pursuant to Government Code Section 54957(a)/Conference with Labor
Negotiators re: Management Group. Present at this Closed Session will be Agency
Negotiators: John Thiel/General Manager and Liz Kauffman, Human Resources Director.
Attorney Kvistad reported the Board took two actions during Closed Session: 1) to appoint
John Thiel and Liz Kauffman to negotiate with the management unit regarding the potential
elimination of the AGM position; and, 2) Liz Kauffman and Nick Exiling to enter into
negotiations with Shannon Cotulla regarding elimination of the AGM position. Attorney Kvistad
further reported that the Board can continue discussions regarding the Reorganization Plan,
but they are not in position to approve Plan at this time. The Board can provide direction to
staff, and conceptually approve Plan if desired, but final approval must wait. Staff will proceed
with what was discussed in Closed Session.
By consensus, the Board conceptually approves the Reorganization Plan as proposed and
presented.
ADJOURNMENT: 5:05 p.m.
Randy Vogelgesang, Board President
South Tahoe Public Utility District
Melonie Guttry, Clerk of tKe Board
South Tahoe Public Utility District