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05-19-202261 n_P�'er 1950 'J SOUTH TAHOE PUBLIC UTILITY DISTRICT David Peterson, Vice President BOARD MEMBERS Kelly Sheehan, President Chris Cefalu, Director Shane Romsos, Director Nick Exline, Director John Thiel, General Manager Paul Hughes, Chief Financial Officer REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT May 19, 2021 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 Sheehan, Directors Romsos, Peterson, Exline Absent: Director Cefalu Staff: John Thiel, Paul Hughes, Gary Kvistad, Marla Sharp, Tim Bledsoe, Jessica Henderson, Julie Ryan, Shelly Thomson, Ryan Lee, Brenlyn Borley, Susan Rasmussen, Chelsea Block, Yesenia Pacheco, Chris Stanley, Dan Arce, Steve Caswell Guests: Lou Pierini 1. PLEDGE OF ALLEGIANCE 2. COMMENTS FROM THE AUDIENCE Lou Pierini commented regarding fire hydrant service as monthly fee for fire protection access and rate structure. Paul Hughes addressed his questions. 3. CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR: None 4. ADOPTION OF CONSENT CALENDAR Moved Sheehan/Second Peterson/Sheehan Yes/Cefalu Absent/Romsos Yes/Peterson Yes/Exline Yes to approve the Consent Calendar as presented. a. RESOLUTION TO SUBMIT APPLICATION FOR WATERLINE UPGRADES AND IMPROVEMENT PROJECT CONSTRUCTION LOAN FROM STATE WATER RESOURCES CONTROL BOARD DRINKING WATER STATE REVOLVING LOAN FUND (Yesenia Pacheco, Grants Coordinator) REGULAR BOARD MEETING MINUTES - May 19, 2022 PAGE - 2 Adopted Resolution No. 3219-22 to Apply for Waterline Upgrades and Improvement Project Construction Loan. b. BIJOU 1 WATERLINE REPLACEMENT PROJECT (Julie Ryan, Engineering Department Manager) (1) Approved the proposed Scope of Work from NCE to provide engineering services for the Bijou 1 Waterline Replacement Project; and, (2) Authorize the General Manager to execute Task Order No. 2 in the amount $135,860. c. ENVIRONMENTAL FILING FOR VARIOUS PIPELINE REPLACEMENT PROJECTS (Adrian Combes, Senior Engineer) (1) Authorized staff to file Categorical Exemption for the Initial Study for the District -Wide Water and Sewer Facilities Upgrade Project; (2) Authorize staff to file a Notice of Exemption for the Tiered Initial Study for the Bijou No.I and Herbert Walkup Waterline and Facilities Upgrade Project; and, (3) Authorize staff to file a Notice of Exemption for the Tiered Initial Study for the Apache Avenue and Lake Tahoe Boulevard Waterline and Facilities Upgrade Project. d. REGULAR BOARD MEETING MINUTES: April 21 and May 5, 2022 (Melonie Guttry, Executive Services Manager/Clerk of the Board) Approved April 21 and May 5, 2022, Minutes. 5. CONSENT ITEMS BROUGHT FORWARD FOR SEPARATE DISCUSSIONZACTION 6. ITEMS FOR BOARD ACTION a. Accessory Dwelling Unit Revisions to the Administrative Code (Tim Bledsoe, Manager of customer services) -Jessica Henderson provided details regarding the amendments to Section 1 and additions to Sections 1.1.2 AND 1.1.86 and Amending Sections 3.1.11, 3.1.15, 3.1.49, 4.2.10, 4.3.2, AND 4.5.2 of the Administrative Code Regarding Accessory Dwelling Units and Junior Accessory Dwelling Units and addressed questions from the Board. Attorney Kvistad provided additional information regarding charges for the units and addressed questions. Tim Bledsoe addressed additional questions. Moved Exline Second Sheehan Sheehan Yes Cefalu Absent Romsos Yes Peterson Yes Exline Yes to approve Ordinance No. 582-22 Amending Section 1 to Add Sections 1.1.2 AND 1.1.86 and Amending Sections 3.1.11, 3.1.15, 3.1.49, 4.2.10, 4.3.2, AND 4.5.2 of the Administrative Code Regarding Accessory Dwelling Units and Junior Accessory Dwelling Units. b. Fiscal Year 2022/23 Water and Sewer Service Charge Rates (Paul Hughes, Chief Financial officer) - Ryan Lee provided details regarding water and sewer service charges for Fiscal Year 2022/23 and the use of Sewer Rate Stabilization Funds in the amount of $2 million in Fiscal Year 2022/23 and addressed questions from the Board and received their positive comments. Moved PetersonZSecond RomsosLSheehan Yes/Cefalu Absent/Romsos Yes/Peterson Yes/Exline Yes to (1) Authorize the use of Sewer Rate Stabilization Funds in the amount of $2 million in Fiscal Year 2022/23; and, (2) Approve Resolution No. 3220-22 confirming the water and sewer service charge rate increases of 9% and 8% for Fiscal Year 2022/23. REGULAR BOARD MEETING MINUTES - May 19, 2022 PAGE - 3 c. Fiscal Year 2022/23 Sewer Enterprise Fund Budget (Paul Hughes, chief Financial officer) Paul Hughes provided details regarding the 2022/23 Sewer Enterprise Fund Budget and addressed questions from the Board. Moved Romsos Second Sheehan Sheehan Yes Cefalu Absent Romsos Yes Peterson Yes/Exline Yes to adopt Resolution No. 3221-22 adopting the Fiscal Year 2022/23 Sewer Enterprise Fund Budget. d. Fiscal Year 2022/23 Water Enterprise Fund Budget (Paul Hughes, chief Financial officer) Paul Hughes provided details regarding the 2022/23 Water Enterprise Fund Budget and addressed questions from the Board. Moved Exline Second Peterson Sheehan Yes Cefalu Absenf Romsos Yes Peterson Yes Exline Yes to adopt Resolution No. 3222-22 adopting the Fiscal Year 2022/23 Water Enterprise Fund Budget. e. Approve Payment of Claims (Debbie Henderson, Accounting Manager) Moved Sheehan/Second Peterson Sheehan Yes Cefalu Absent/Romsos Yes/Peterson Yes/Exline Yes to approve Payment of Claims in the amount of $$1,000,450.96. 7. STANDING AND AD -HOC COMMITTEES AND LIAISON REPORTS: Director Romsos provided details regarding the System Efficiency Committee meeting that he and Director Exline attended on May 3 and the great collaboration between agencies. Also provided details regarding the Solar Committee meeting he and Director Exline attended today. Director Peterson provided information regarding the Operations Committee meeting he and Director Romsos attended on May 16. 8. BOARD MEMBER REPORTS: None 9. EL DORADO WATER AGENCY PURVEYOR REPORT: Director Peterson provided details regarding the meeting he and John Thiel attended on May 11. John Thiel provided details that he and Julie Ryan will be making a presentation at the next meeting on June 8. 10. STAFF/ATTORNEY REPORTS: Paul Hughes wished Susan Rasmussen well on her retirement after 27 years and welcomed Chelsea Block as the Finance Assistant. Attorney Kvi_stad provided details regarding alternate procedures for processing Payment of Claims and addressed questions from the Board. Authorizations and restrictions will be detailed in a Resolution which will be brought forward at a future Board meeting. An Amendment to the Board Policy Manual will also be necessary. 11. GENERAL MANAGER REPORT: John Thiel reported on several items: • Provided a staffing update • Provided an update regarding Red Lake Road water quality. The District is working to providing high quality water to this area despite issues with the water lines and will continue to do so. REGULAR BOARD MEETING MINUTES - May 19, 2022 PAGE - 4 • Provided an update regarding the California Tahoe Alliance (CTA). Participated in the CTA Steering Committee meeting last week to continue planning the Tahoe caucus this summer with a focus on the Caldor Fire Tour. They are also interested in fuels reduction and biomass and are working with the City and setting up tours and meetings during the Tahoe Summit in August. Provided information regarding the meeting scheduled for Monday, May 23, with the United States Forest Service, Lake Tahoe Basin Management Unit, (USFS) for the Fire Suppression Partnership with Tahoe City and North Tahoe Public Utility Districts and the Lake Tahoe Restoration Act funding distribution. Another meeting with the USFS Supervisor, Erick Walker, USFS key staff members and District staff will be held on Tuesday, May 24, at 10:00 a.m. at the District to discuss past and future projects. • Dave Eggerton, Executive Director of the Association of California Water Agencies (ACWA), will be visiting the District on June 9, 2022. Tahoe Water Suppliers Association is celebrating its 20-year anniversary on Wednesday, June 1, 2022,1 1:30 at the North Tahoe Event Center. John Thiel invited Board members to join him and Shelly Thomsen. Directors Romsos and Peterson will be participating in a Diamond Valley Ranch Pasture Walk on Friday, June 3, 2022. 12. NOTICE OF PAST AND FUTURE MEETINGS EVENTS 13. gREAK AND ADJOURN TO CLOSED SESSION: 3:07 p.m. RECONVENE TO OPEN SESSION: 3:31 p.m. a. Pursuant to Section 54957.6 of the California Government Code. Closed Session may be held for conference with Labor Negotiators: John Thiel, General Manager; Paul Hughes, Chief Financial Officer; and Liz Kauffman, Human Resources Director, regarding Memorandum of Understanding with Stationary Engineers, Local 39. No reportable Board Action b. Pursuant to Government Code Section 54957(a)/Conference with Labor Negotiators: Memorandum of Understanding with Management Group. Present at this Closed Session will be Agency Negotiators: John Thiel, General Manager; Paul Hughes, Chief Financial Officer; and Liz Kauffman, Human Resources Director. No rpportable Board Action / ADJOURNMENT: 3:32 p.m. 6wli ) (�� Kelly Sheehan, Board President South Tahoe Public Utility District Marla Sharp, As Est Cur of the Board South Tahoe Public Utility District