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SOUTH TAHOE PUBLIC UTILITY DISTRICT
David Peterson, President BOARD MEMBERS Kelly Sheehan, Director
Nick Haven, Director Shane Romsos, Vice 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
May 18, 2023
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 Peterson, Directors, Romsos, Sheehan, Exline
Absent: Nick Haven
Staff: John Thiel, Gary Kvistad, Paul Hughes, Melonie Guttry, Julie Ryan, Chris Stanley, Trevor
Coolidge, Shelly Thomsen, IV Jones, Bren Borley, Chris Skelly, Shannon Chandler, Rachel Kailas, Cuz
Cullen, Julie Ryan, Stephen Caswell, Liz Kauffman, Jason Glaze, Star Glaze, Megan Colvey, Brent
Goligoski, Jamie Taylor, Heidi Baugh, Elsa Erling, Cole Baginiski,
Guests: Elisa Garvey, Carollo Engineers; Jesse Garner; Duane Wallace, CEO of the Chamber of
Commerce; Joe Cardinale; Members of the Community
1. PLEDGE OF ALLEGIANCE
2. COMMENTS FROM THE AUDIENCE: Jesse Garner, Firewise Neighborhood, addressed the Board
regarding Fire Wise and will be back in June to announce the annual theme for the National Fire
Prevention Association.
3. CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR: None
4. ADOPTION OF CONSENT CALENDAR:
Moved Romsos/Second Peterson/Peterson Yes/Haven Absent/Romsos Yes/Sheehan Yes/Exline
Yes to approve the Consent Calendar as presented.
a. 2022 SEWER LINE SPOT REPAIRS & LATERAL ABANDONMENT SERVICES
(Richard Jones, Underground Sewer Repair Supervisor and Heidi Baugh, Purchasing Agent)
1) Approved Change Order No. 1 to final quantities completed as a credit to the District in the
amount of $38,750; and 2) Authorized General Manager to approve (a) Notice of Completion
for recordation with the El Dorado County Clerk, and (b) Closeout Agreement and Release of
Claims for Robotic Sewer Solutions Inc. for the 2022 Sewer Line Spot Repairs & Lateral
Abandonment Services Contract.
REGULAR BOARD MEETING MINUTES: May 18, 2023 PAGE -2
b. RECEIVE AND FILE PAYMENT OF CLAIMS
(Greg Dupree, Accounting Manager)
Received and filed Payment of Claims in the amount of $1,268,501.08.
c. REGULAR BOARD MEETING MINUTES: May 4, 2023
(Melonie Guttry, Executive Services Manager/Clerk of the Board)
Approved May 4, 2023, Minutes.
5. CONSENT ITEMS BROUGHT FORWARD FOR SEPARATE DISCUSSION/ACTION: None
6. ITEMS FOR BOARD ACTION:
a. Fiscal Year 2023/24 Water and Sewer Service Charge Rates (Ryan Lee, Customer Service Manager) -
Paul Hughes provided details regarding the Fiscal Year 2023/24 Water and Sewer Service
Charge Rates. The District held two public meetings earlier this year to review the 2023/24
budget and rate increases relating to the substantial infrastructure needs. The typical impact
to typical residential customers is approximately $10.75 per month. After keeping rates flat for
two consecutive years due to COVID-19, the maximum allowable increases for 2024 are 18%
for the water service rates and 12.5% for sewer service rates. However, to lessen impact on
customers, the Board would like to move forward with a 9.5% increase for each and to utilize
the $2 million rate stabilization fund. The District currently has 18 open grants which are funding
approximately $42 million in projects. Shelly Thomsen provided details regarding customer
feedback data. Melonie Guttry read three letters from customers. Patricia Arnet addressed the
Board regarding the rate increases. Duane Wallace addressed the Board regarding increases.
Joe Cardinale addressed the Board regarding rate increases. President Peterson addressed
the audience regarding rate increases and how these increases impact the community
residents. Directors Exline, Sheehan and Romsos also commented regarding the community
impact of the proposed rate increases and that these increases impact all of the Board and
staff who are working to minimize these increases through cost-cutting and grant applications.
Moved Sheehan/Second Exline/Peterson Yes/Haven Absent/Romsos Yes/Sheehan Yes/Exline
Yes to (1) Authorize the use of Sewer Rate Stabilization Funds in the amount of $2 million in
Fiscal Year 2023/24, and (2) Approve Resolution No. 3244-23 confirming the water and sewer
service rate increases of 9.5% and 9.5% for Fiscal Year 2023/24.
b. Fiscal Year 2023/24 Sewer Enterprise Fund Budget (Paul Hughes, Chief Financial Officer) — Paul Hughes
provide details regarding the Fiscal Year 2023/24 Sewer Engerprise Fund Budget.
Moved Exline/Second Romsos/Peterson Yes/Haven Absent/Romsos Yes/Sheehan Yes/Exline
Yes toAdopt Resolution No. 3245-23 for the Fiscal Year 2023/24 Sewer Enterprise Fund Budget,
and authorize staff to incorporate any adjustments or changes necessary as a result of Board
action on the sewer service rate increases.
c. Fiscal Year 2023/24 Water Enterprise Fund Budget (Paul Hughes, Chief Financial Officer) — Paul Hughes
provided details regarding the Fiscal Year 2023/24 Water Enterprise Fund Budget.
Moved Romsos/Second Sheehan/Peterson Yes/Haven Absent/Romsos Yes/Sheehan
Yes/Exline Yes to adopt Resolution No. 3246-23 for the Fiscal Year 2023/24 Water Enterprise
Fund Budget, and authorize staff to incorporate any adjustments or changes necessary as a
result of Board action on the water service rate increases.
REGULAR BOARD MEETING MINUTES: May 18, 2023 PAGE-3
President Peterson invited the community to participate in the next year's budget and
Proposition 218 process.
d. Appointment of Interim Grants Coordinator (Paul Hughes, Chief Financial Officer) — Paul Hughes
provided details regarding the appointment of Interim Grants Coordinator. President Peterson
commented that this is a revenue generating position which has his support and Director
Exline echoed his comments.
Moved Sheehan/Second Romsos/Peterson Yes/Haven Absent/Romsos Yes/Sheehan
Yes/Exline Yes to appoint Lynn Nolan, a CaIPERS retired annuitant, as the Interim Grants
Coordinator from May 19, 2023, through the maximum end date of December 31, 2023.
e. General Manager Sick Leave Accrual (Liz Kauffman, Human Resources Director and Paul Hughes, Chief
Financial Officer) — Liz Kauffman provided details regarding General Manager Sick Leave Accrual
and addressed questions from the Board. Paul Hughes provided further details regarding the
additional payout.
Moved Exline/Second Romsos/Peterson Yes/Haven Absent/Romsos Yes/Sheehan Yes/Exline
Yes to Approve an exception to the sick leave benefits as applicable to the General Manager
and authorize payment to the General Manager for excess sick leave accrual in the amount
of approximately $40,788 upon separation of employment.
f. Interim General Manager Appointment (Liz Kauffman, Human Resources Director) — Liz Kauffman
provided details regarding the appointment of Paul Hughes as Interim General Manager upon
the General Manager's last day of employment. President Peterson thanked Paul Hughes for
accepting the appointment.
Moved Romsos/Second Exline/Peterson Yes/Haven Absent/Romsos Yes/Sheehan Yes/Exline
Yes to appoint Paul Hughes, Chief Financial Officer, to the position of Interim General
Manager effective June 3, 2023.
g. Winter Storms Emergency Response (John Thiel, General Manager) —John Thiel provided details
regarding the Winter Storms Emergency Response and reported that the Emergency
Operations Center has been closed, but the work to restore services is continuing. He
addressed questions from the Board. Paul Hughes added that there is no need to increase the
budget for this work even though it is still continuing.
Moved Peterson/Second Romsos/Peterson Yes/Haven Absent/Romsos Yes/Sheehan
Yes/Exline Yes 1) Pursuant to Public Contract Code Section 22050(c), continue the emergency
action to respond to the Winter Storms Emergency pursuant to Resolution No. 3242-23.
7. STANDING AND AD-HOC COMMITTEES AND LIAISON REPORTS:
Director Romsos provided details regarding the Operations Committee Meeting on Monday, May
15, 2023. He also reported on the Ad-Hoc GM Recruitment Committee met to move the recruiting
process forward. The Executive Committee met this afternoon regarding the General Counsel
Request for Proposals. President Peterson reported the last EDWA meeting was held on May 17,
2023. The budget was presented and approved by the Board and is slated for adoption in one
month at a public hearing. John Thiel and President Peterson provided details regarding funds
budgeted specifically for STPUD. The Board appointed Interim General Manager, Rebecca Goh,
beginning June 10, 2023.
REGULAR BOARD MEETING MINUTES: May 18, 2023 PAGE-4
8. BOARD MEMBER REPORTS:
Director Exline thanked John Thiel for his leadership at the District. President Peterson echoed his
comments.
9. STAFF/ATTORNEY REPORTS:
Stephen Caswell provided a PowerPoint Presentation regarding the Recycled Water Strategic
Plan Update and addressed questions from the Board.
10.GENERAL MANAGER REPORT:
John Thiel reported on several items:
• Provided a staffing update
• Provided a State of the South Shore 2023 update wherein staff presented on behalf of the
District
• Provided a Lake Valley Fire, Black Bart Fire Station update
• Provided a Bently Composting update stating that all of the District's biosolids currently go to
Bently for composting which is still up for sale for $100 million currently. The District is
anticipating a five-year contract renewal.
• Spoke on the fire hydrants that were funded by the City through ARPA funds
11. NOTICE OF PAST AND FUTURE MEETINGS/EVENTS
12. BREAK AND ADJOURN TO CLOSED SESSION: 4:13 p.m.
RECONVENE TO OPEN SESSION: 4:50 p.m.
a. Pursuant to Section 54956.9(d)(1) of the California Government code, Closed Session may be
held for conference with legal counsel regarding existing litigation: Yolo County Superior Court
Case CV 2021-1686, Alpine County vs. South Tahoe Public Utility District; et al
No reportable Board Action
ADJOURNMENT: 5:00 p.m.
D vid Peterson, Board President
South Tahoe Public Utility District
Melonie Guttry, Executive Se ' es Manager/
Clerk of the Board
South Tahoe Public Utility District