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08-17-20231950 SOUTH TAHOE PUBLIC UTILITY DISTRICT David Peterson, President BOARD MEMBERS Kelly Sheehan, Director Nick Haven, Director Shane Romsos, Vice President Nick Exline, Director Paul Hughes, General Manager REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT August 17, 2023 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 Peterson, Directors Haven, Romsos, Sheehan Absent: Director Exline Staff: Paul Hughes, Keith Collins, Melonie Guttry, Julie Ryan, Chris Stanley, Trevor Coolidge, Chelsea Block, Lauren Benifield, Ryan Lee, Megan Colvey, Bren Borley, Shelly Thomsen, Greg Dupree, Shannon Chandler 1. PLEDGE OF ALLEGIANCE: 2. COMMENTS FROM THE PUBLIC: None 3. CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR: 4. ADOPTION OF CONSENT CALENDAR: Moved Haven Second Romsos Peterson Yes Haven Yes Romsos Yes Sheehan Yes Exline Absent to approve the Consent Calendar as presented. a. WINTER STORMS EMERGENCY RESPONSE (Paul Hughes, General Manager) Pursuant to Public Contract Code Section 22050(c), continued the emergency action to respond to the Winter Storms Emergency pursuant to Resolution No. 3242-23. b. CALPERS REQUIRED PAY LISTING BY POSITION (Greg Dupree, Accounting Manager) Adopted Resolution 3255-23 which incorporates the Pay Listing by Position for the pay listing effective July 20, 2023. REGULAR BOARD MEETING MINUTES: August 17, 2023 PAGE - 2 c. CAPITAL OUTLAY ROLLOVER ACCOUNTS (Greg Dupree, Accounting Manager) Authorized staff to direct rollover funds budgeted in 2022/2023 fiscal year to the 2023/2024 fiscal year. d. REBID 2023-2024 TANK COATINGS TOUCHUP PROJECT (Megan Colvey, Senior Engineer and Heidi Baugh, Purchasing Agent) Authorized the General Manager to execute Change Order No. 1 to Unified Field Services Corporation in the amount of $36,299.42. e. RECEIVE AND FILE PAYMENT OF CLAIMS (Greg Dupree, Accounting Manager) Received and filed Payment of Claims in the amount of $1,526,454.43. f. REGULAR BOARD MEETING MINUTES: July 31 and August 7 2023 (Melonie Guttry, Executive Services Manager/Clerk of the Board) Approved July 31 and August 7, 2023, Minutes. 5. CONSENT ITEMS BROUGHT FORWARD FOR SEPARATE DISCUSSION ACTION: None 6. ITEMS FOR BOARD ACTION: a. General Manager Agreement for Professional Services (Liz Kauffman, Human Resources Director) - Mcloniie Guttry provided details regarding the General Manager Agreement for Professional Services and reported that the Executive Committee negotiated the proposed Agreement with Paul Hughes. There were minor edits recommended by the Executive Committee to Sections 4(Term), 5d(Conference Attendance), 6a (District Vehicle), and 8a (Termination). The proposed Agreement has also been reviewed by Attorney Collins. President Peterson added that the appointment was unanimous and the Agreement was reasonable and easy to negotiate. Director Haven voiced his appreciation for the Executive Committee managing this process and appreciates the number of internal candidates that applied for the position. Moved Romsos Second Peterson Peterson Yes Haven Yes Romsos Yes Sheehan Yes Exline Absent to approve the General Manager Agreement for Professional Services between the South Tahoe Public Utility District and Paul Hughes for the position of General Manager, commencing August 17, 2023. The Board congratulated Paul Hughes on his appointment as South Tahoe Public Utility District's General Manager. 7. STANDING AND AD -HOC COMMITTEES AND LIAISON REPORTS: Director Romsos reported the Executive Committee met prior to the Board Meeting to discuss the legal counsel transition process. President Peterson added that he asked Attorney Collins to review his conflict of interest with the Tahoe Keys Property Owners' Association (TKPOA) which Attorney Collins confirmed. Therefore, President Peterson will continue to recuse himself from all items of business relating to the TKPOA. Director Haven reported that he participated in a tour of Diamond Valley Ranch and was impressed with the breadth of operations in Alpine County. Director Romsos added that the District has had a record number of water leaks in July, as reported at the August 14th Operations Committee meeting. REGULAR BOARD MEETING MINUTES: August 17, 2023 PAGE - 3 8. BOARD MEMBER REPORTS: None 9. STAFF/ATTORNEY REPORTS_ Shelly Thomsen provided a legislative update including activities revolving around the Tahoe Summit which was held on August 9t" at Kings Beach. Director Haven reported that he also attended the Tahoe Summit and feels the the District provided great messaging at their event booth. Shelly Thomsen provided further details regarding several delegation connections as well as the California Tahoe Alliance climate bond discussions resulting in District language being utilized to expand grant eligibility for funding for fire suppression. Lastly, Congressman Kevin Kiley is scheduled to tour Diamond Valley Ranch (DVR) on August 31, 2023. President Peterson requested highlighting the Tamarack Fire during the DVR tour. Paul Hughes added that the District will remind Kevin Kiley that the District has a FEMA application in process for soil stabilization. Attorney Collins reported that he has been in contact with Brownstein Hyatt Farber Schreck and files have been prioritized to be transferred to Jones Mayer. 10. INTERIM GENERAL MANAGER REPORT: Paul Hughes reported on several items: • Provided a staffing update Lahontan has issued a cleanup and abatement order for the PCE Plume and Attorney Kvistad has been contacted by an attorney representing Lake Tahoe Laundry Works, responsible party, regarding a possible settlement. • Major Projects for the Fiscal Year include: Recruitment for a new Chief Financial Officer Address vacant operational management positions; hire for vacant positions; there will not be a reorganization Negotiate labor contracts Complete the District Compensation Study - Request for Proposals have been issued Develop a Board desired level Capital Improvement Plan Complete new five-year water and sewer rate studies Issue a new multi -year Proposition 218 Notice and hold public meetings Continue the TKPOA consolidation discussions 11. NOTICE OF PAST AND FUTURE MEETINGS EVENTS 12. BREAK AND ADJOURN TO CLOSED SESSION: 2:30 p.m. RECONVENE TO OPEN SESSION: 2:38 P.M. a. Pursuant to Government Code Section 54957(b)(1) consider the appointment of a public employee - General Manager. No reportable Board Action b. 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 REGULAR BOARD MEETING MINUTES: August 17, 2023 PAGE - 4 ADJOURNMENT: 2:39 P.M. Melanie Guttry, Executive Services Manager/ Clerk of th)68,oard South Tahoe Public Utility District David Peterson, Board President South Tahoe Public Utility District