10-07-2021SOUTH TAHOE PUBLIC UTILITY DISTRICT
David Peterson, Vice President
Chris Cefalu, Director
BOARD MEMBERS
Shane Romsos, Director
Kelly Sheehan, President
Nick Exline, Director
John Thiel, General Manager Paul Hughes, Chief Financial Officer
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
October 7, 2021
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 Sheehan, Directors Cefalu, Romsos, Peterson, Exline
Staff: John Thiel, Paul Hughes, Gary Kvistad, Melonie Guttry, Bren Borley, Julie Ryan, Chris Stanley, Tim
Bledsoe, Chris Skelly, Stephen Caswell, Susan Rasmussen, Erika Franco, Heidi Baugh, Greg DuPree,
Debbie Henderson, Cliff Bartlett
CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR:
None
CONSENT CALENDAR:
Moved Cefalu/Second/Sheehan Yes/Cefalu Yes/Romsos Yes/Peterson Yes/Exline Yes to approve the
Consent Calendar as presented.
RECEIVE AND FILE THE JUNE 30. 2021. INCOME STATEMENT
( Paul Hughes, Chief Financial Officer)
Received and filed the June 30, 2021, Income Statement and Balance Sheet Reports.
RESOLUTION FOR BUREAU OF RECLAMATION WATERSMART DROUGHT RESPONSE PROGRAM:
DROUGHT RESILIENCY PROJECTS FOR FISCAL YEAR 2022 GRANT
(Lynn Nolan, Grants Coordinator)
Adopted Resolution No. 3195-21 approving grant funding for the Water Loss Data System
Implementation Project to the Bureau of Reclamation WaterSMART Drought Response
Program: Drought Resiliency Projects for Fiscal Year 2022 Grant Program.
REGULAR BOARD MEETING MINUTES: September 16, 2021
(Melonie Guttry, Executive Services Manager/Clerk of the Board)
Approved September 16, 2021, Minutes
REGULAR BOARD MEETING MINUTES October 7, 2021 PAGE-2
PRESENTATION
President Sheehan presented the Finance Department with the Award of Government Finance
Officers Certificate of Achievement in Excellence in Financial Reporting.
ITEMS FOR BOARD ACTION
a.Purchase of Onsite Generators at Al Tahoe and Upper Truckee Pump Stations (Cliff Bartlett, Fleet and
Equipment Supervisor and Heidi Baugh, Purchasing Agent) -Cliff Bartlett provided details regarding the
proposed onsite generators at Al Tahoe and Upper Truckee Pump Stations and addressed
questions from the Board. He further explained that these generators are 75% grant funded and
Julie Ryan provided details regarding battery storage.
Moved Sheehan/Second Peterson/Sheehan Yes/Cefalu Yes/Romsos Yes/Peterson Yes/Exline
Yes to l) Authorize Smith Power Products Inc. to be the sole source provider for the purchase of
MTU Generators; 2) Authorize purchase of two MTU 350 kilowatt Generators from Smith Power
Products, Inc. in the approximate amount of $144,730 to replace existing generators at Al Tahoe
Pump Station and Upper Truckee Pump Station.
b.Recycled Water Strategic Plan (Stephen Caswell, Principal Engineer) -Stephen Caswell presented
details regarding the Recycled Water Strategic Plan Phase l and addressed questions from the
Board.
Moved Romsos/Second Peterson/Sheehan Yes/Cefalu Yes/Romsos Yes/Peterson Yes/Exline Yes
to approve proposal from Carollo Engineers, Inc. in the amount of $389,971 for engineering
services for the Recycled Water Strategic Plan Phase 1 and authorize the General Manager to
execute Task Order No. 25 to the Master Services Agreement with Carollo Engineers, Inc.
c.Diamond Valley Ranch Facilities Emergency Repairs Project (John Thiel, General Manager) -John
Thiel provided an update regarding work completed and continuing at Diamond Valley Ranch
Facilities for the Emergency Repairs Project.
Moved Sheehan/Second Peterson/Sheehan Yes/Cefalu Yes/Romsos Yes/Peterson Yes/Exline
Yes to continue the emergency action to repair the Diamond Valley Ranch Facilities per
Resolution No. 3193-21.
d.Caldor Fire Emergency Response (John Thiel, General Manager) -John Thiel provided details
regarding the status of the Caldor Fire and the Emergency Response. Director Exline provided
kudos to staff for all efforts throughout the entire emergency process from star to cleanup.
Moved Sheehan/Second Peterson/Sheehan Yes/Cefalu Yes/Romsos Yes/Peterson Yes/Exline
Yes to continue the emergency action to respond to the Caldor Fire per Resolution No. 3194-21.
e.Mid-year Service Charge Rate Increase (John Thiel, General Manager and Paul Hughes, Chief Financial
Officer) -John Thiel and Paul Hughes provided information regarding a potential current year,
mid-year rate increase that would take place in January, as well as reviewed a brief history from
budget meetings earlier in the year. Paul Hughes explained that due to unbudgeted
expenditures over this past year, any rate increase in January will be needed to offset those
expenditures, leaving no new money for projects. The Board discussed their considerations
regarding a mid-year rate increase and that there is a lot of work to be done at the District and
REGULAR BOARD MEETING MINUTES October 7, 2021 PAGE-3
the District needs to get back on track. The financial plan is probably underfunded now, due to
inflation. The cost of the proposed rate increase is approximately $17 per quarter, per customer
for water and sewer combined. The District is well below 30% of the average for rates around
the Lake. Connection fees are also being reviewed as a separate item and will be brought to
the Board once the consultant has refined the study. By consensus, the Board directed staff to
hold off until May on rate increases and not entertain a mid-year rate increase.
f.Approve Payment of Claims (Debbie Henderson, Accounting Manager)
Moved Sheehan/Second Peterson/Sheehan Yes/Cefalu Yes/Romsos Yes/Peterson Yes/Exline
Yes to approve Payment of Claims in the amount of $3,258,133.64.
STANDING AND AD-HOC COMMITTEES AND LIAISON REPORTS:
Nothing to report
BOARD MEMBER REPORTS:
Director Exline commented that he recently experienced the burn areas over Echo Summit. Director
Romsos reported that he drove the Caldor Fire burn areas recently also and wanted to recognize the
District for its efforts in providing water throughout the fire. Director Peterson invited everyone to a
workshop on Saturday, October 9, from 9 a.m. to noon at the Tahoe Keys Pavilion regarding aquatic
weeds.
EL DORADO WATER AGENCY PURVEYOR REPORT:
Nothing to report
Staff Attorney Reports:
Attorney Kvistad reported the California Governor's Emergency Executive Order allowing for virtual
public meetings expired on September 30, 2021. As a result, Assembly Bill 361 passed September l 0,
and was signed into law September 26, set to expire on December 31, 2023, allowing some variation
of virtual meetings to continue. Local agencies are allowed to continue conducting meetings
virtually so long as the Governor has proclaimed a state of emergency and the Bill imposes new
requirements for authorizing and holding such virtual meetings. One such requirement is that the
Board would be required to determine that in person meetings were not in the best interest of health
and safety and that decision would need to be put on the Agenda and voted on every 30 days. If
the Board desires to continue virtual meetings, it can be done, but with a lot of additional
requirements. Chris Skelly provided details regarding staff efforts in order to continue to allow virtual
meeting access including staff time and costs associated. After discussion and by consensus, the
Board will not be holding virtual meetings going forward but may want to continue to hold
committee meetings virtually. Attorney Kvistad will follow up with information to determine if this
option is allowable.
GENERAL MANAGER REPORT:
John Thiel reported on several items:
•Provided a staffing update and announced that Buck McClelland was the successful
candidate for the Underground Repair Water Supervisor position -congratulations to him!•Provided a COVID-19 update, one staff member out positive with no symptoms and another
out as a precaution, as a family member has tested positive. The District is awaiting direction
from the State regarding any vaccine mandates.
REGULAR BOARD MEETING MINUTES October 7, 2021 PAGE-4
•Provided details regarding funding that is coming from the City of South Lake Tahoe for fire
hydrants within the city limits. Shelly Thomsen has been working with the Fire Department
regarding the adopt-a-hydrant program and will bring more information forward as it
becomes available.•Lake Tahoe Community College recently recognized the District for efforts throughout the
Caldor Fire during their recent State of the College address.
•California Tahoe Alliance and the District will be hosting approximately 30 people on Tuesday,
October 12 for a fire related presentation with a tour of the Caldor Fire burn areas. This is being
done to emphasize the message that more funding is needed for wildfires.
BREAK AND ADJOURN TO CLOSED SESSION: 3:44 p.m.
RECONVENE TO OPEN SESSION: 4:01 p.m.
a.Pursuant to Government Code Section 54956.9(d)(2) of the California Government code,
Closed Session may be held for a conference with legal counsel (two cases).
No reportable Board Action
ITEMS FOR BOARD AC TION -CONTINUED
a.Liability Claim Against the South Tahoe Public Utility District received from Jeff Lee
(Tim Bledsoe, Manager of Customer Service) -Tim Bledsoe presented information regarding the liability
claim against the District and addressed questions from the Board.
Moved Cefalu/Second Sheehan/Sheehan Yes/Cefalu Yes/Romsos Yes/Peterson Yes/Exline
Yes to reject the claim against the South Tahoe Public Utility District for losses allegedly
sustained by Jeff Lee and request the Joint Powers Insurance Authority to resolve the claim.
b.Liability Claim Against the South Tahoe Public Utility District received from Gary Stuber
(Tim Bledsoe, Manager of Customer Service) -Tim Bledsoe presented information regarding the liability
claim against the District and addressed questions from the Board.
Moved Cefalu/Second Sheehan/Sheehan Yes/Cefalu Yes/Romsos Yes/Peterson Yes/Exline
Yes to reject claim against the South Tahoe Public Utility District for losses allegedly sustained
by Gary Stuber and request the Joint Powers Insurance Authority to resolve the claim.
ADJOURNMENT: 4:02 p.m.
Melonie Guttry, Clerk of the Board
South Tahoe Public Utility District
Kelly S ehan, Board President
South Tahoe Public Utility District