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2004 01-02 SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" Richaro SOlbriV' General Manaqer James R. Jones, President BOARD MEMBERS Paul Sciuto, Assistant Manaier Eric W. Schafer, Vice President Duane Wallace, [)irector Mal)' Lou Mosbacher, Director Tom Corme, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT JANUARY 2, 2004 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, January 2, 2004, 2:10 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California. BOARD OF DIRECTORS: ROLL CALL President Jones, Directors Wallace, Schafer, Mosbacher. Director Comte was absent due to winter storm. STAFF: Solbrig, Sharp, Sciuto, Hydrick, Cocking, Coyner. Attorney Kvistad arrived late due to winter storm. Director Schafer requested Consent Item a. (Liability Claim) be brought forward for a separate vote due to a potential conflict of interest: his spouse has a business relationship with Mr. Senior. CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR Staff requested Consent Item c. (Elks Club Well Control Building) be brought forward for discussion prior to Board action. Moved Mosbacher I Second Schafer I Comte Absent I Passed to approve the Consent Calendar as amended: CONSENT CALENDAR a. See Consent Items Brought Forward; REGULAR BOARD MEEnNG MINUTES - JANUARY 2, 2004 PAGE - 2 b. Plan Review Services - Authorized entering into a contract with Chris Twomey, effective 01/02/04- 12/31/04; c. See Consent Items Brought Forward; d. Purchase of Tank Truck - Authorized staff to advertise for bids for a pumper tank truck; e. Side Letter to Managers' Memorandum of Understanding- Approved Side Letter extending compensatory time limits for Engineering Department due to assistant general manager position not being filled. CONSENT CALENDAR (continued) CONSENT ITEMS BROUGHT FORWARD FOR DISCUSSION I ACTION Lisa Coyner reported the claimant requested the District assume responsibility for the public right-of-way section of his sewer lateral. In accordance with the District's Administrative Code Section 4.7.2, sewer laterals shall be maintained by the owner of the property. Coyner recommended the claim be rejected. A community forum will be held in February regarding sewer lateral air testing . Moved Mosbacher / Second Wallace / Scp~fer Abstained / Comte Absent / Passed to reject claim. (Schafer abstained due to the conflict of interest described above.) Nick Zaninovich explained the check request was inad- vertently processed prior to approval of the change order. Moved Mosbacher / Second Wallace I Comte Absent! Passed to approve Change Order No. 1 in the amount of $7,272.56 LIABILITY CLAIM RECEIVED FROM ED SENIOR. APN 26-114-11 (Consent Item a.) ELKS CLUB WELL CONTROL BUILDING (Consent Item c.) ITEMS FOR BOARD ACTION Moved Schafer / Second Mosbacher / Comte Absent / Passed to elect Director James R. Jones to the office of Board President for the 2004 calendar year. Richard Solbrig presented President Jones with a token of appreciation for his service as 2003 Board President. ELECTION OF BOARD OFFICERS: ~OARtl PRE~IDENT REGULAR BOARD MEETING MINUTES - JANUARY 2, 2004 PAGE - 3 Moved Jones 1 Second Mosbacher 1 Comte Absent! Passed to elect Director Eric W. Schafer to the office of Board Vice President for the 2004 calendar year. This project is included on the 2004 Engineering Project Priority list due to a bottleneck in the water flow, which impairs the ability to utilize Valhalla and Airport Wells to their optimum potential. Also, the City is performing over- lay projects in this area and will not allow trenching after October 2005. The combination of these two facts dictates that the waterline project be completed during 2004. Paul Sciuto reported there are not sufficient in-house resources to complete the design in time to begin work by May. He recommended contracting with a local engineer to complete the design. Moved Wallace 1 Second Mosbacher 1 Comte Absent 1 Passed to approve a proposal from c2me Engineering for design and construction assistance in the amount of $38,500. Engineering staff obtained RFPs from the suppliers of two systems known to be capable of treating drinking water for MTBE, U.S. Filter, and Applied Process Technology. Resolution No. 2777-03 was approved by the Board on September 18, 2003, accepting the GAC (granular activated carbon> treatment system offered by U.S. Filter. Since that time, staff has discovered that GAC is inefficient at removing tertiary butyl alcohol (which has been discovered at the Sioux Sentinel Well, approximately 2,000 feet from Bakersfield Well). Staff recommended adoption of Resolution No. 2779-04 rescinding 2777-03. After evaluating the GAC and the HiPOx systems, staff recommended the patented HiPOx system for the Bakersfield Well for the following reasons: · Total destruction of the MTBE and TBA molecules; · System is not an "accumulator" such as GAC, thereby eliminating concerns related to radionuclide accumulation, biogrowth, and waste disposal of spent carbon: · Low environment impact (lower profile and less site coverage required than for GAC); · District operator familiarity and known reliability from Arrowhead Well No. 3 treatment; ELECTION OF BOARD OFFICERS: BOARD VICE PRESIDENT HIGHWAY 50 WATERLINE REPLACEMENT: WINNEMUCCA TO THE Y BAKERSFIELD WELL TREATMENT PROJECT REGULAR BOARD MEETING MINUTES - JANUARY 2, 2004 PAGE - 4 · More versatile than GAC for the variable flow rates BAKERSFIELD WELL TREATMENT that can exist at the Bakersfield Well. PROJECT (continued) Engineering staff also recommended purchasing the pres- sure switch absorption system for on-site generation of oxygen on an as-needed basis. This will eliminate the requirement to have on-site bulk storage of liquid oxygen near Meyer's Elementary School. The price of this option is $89,600, and is included in the total being requested. Approval now will ensure the treatment system components can be delivered in time to meet the June15 operational deadline. Moved Wallace 1 Second Schafer 1 Comte Absent 1 Passed to: (1) Adopt Resolution No. 2779-04, rescinding Resolution No. 2777-03, which authorized an exemption from competitive bidding procedures to negotiate directly with U.S. Filter; (2) Make a finding that Applied Process Technology's proprietary advanced oxidation treatment (HiPOx) system is the best treatment for the Bakersfield Well; and (3) Award contract to Applied Process Technology, the sole source supplier for HiPOx, including treatment process and related services, in the amount of $832,600. Staff recommended using Boyle Engineering for the electrical design work, due to the complexity of the project and their previous experience with the Arrowhead Well HiPOx project. Moved Wallace I Second Schafer 1 Comte Absent I Passed to authorize staff to enter into an agreement with Boyle Engineering for electrical design and consulting services for the HiPOx treatment system, in the amount of $31,750. The Bakersfield Well, the largest well in the Meyers/Tahoe Paradise area, must operate, especially during periods of high summer-time demand, in order to provide adequate water supply and pressure. The well is threatened by an MTBE plume, and concentrations have been found in a nearby sentinel well. Bakersfield Well samples have shown concentrations that exceed the Board's policy to prevent all detectable concentrations of MTBE from entering the public drinking water supply. The Bakersfield Well must be treated for the removal of MTBE. BAKERSFIELD WELL TREATMENT PROJECT BAKERSFIELD WELL TREATMENT PROJECT Due to the infrastructure, mechanical and electrical require- ments necessary to have the treatment process operational by June 15, 2004, construction will need to begin by REGULAR BOARD MEETING MINUTES - JANUARY 2, 2004 PAGE - 6 April 1, 2004. With this time constraint and the need for design time, suspension of formal bidding process and the ability to pre-purchase equipment will be necessary. A minimum of three contractors will be asked to provide bids on preliminary design documents for the site improve- ments necessary. (3:05 p.m. - Attorney Kvistad arrived at the meeting.) This item has been reviewed by the Operations Committee and approval was recommended. Moved Wallace 1 Second Schafer 1 Comte Absent I Pa~sed to adopt Resolution 2780-04 to: (1) Determine an emergency exists pursuant to Section 1102 of the Public Contract Code; (2) Determine substantial evidence has been presented to authorize an exception be made to Section 22050 of the Public Contract Code that this emergency will not permit a delay resulting from com- petitive solicitation for bids, and that this action is necessary to respond to the emergency; and (3) Delegate authority to the General Manager to order any action necessary to respond to this emergency. Moved Wallace I Second Schafer 1 Cornte Absent 1 Passed to approve payment in the amount of $629,058.71. Finance Committee: The committee met December 22. Topics of discussion included quarterly statements and future borrowing. Water and Wastewater Operations Committee: The committee met December 29. Minutes of the meeting are available upon request. Director Wallace reported the County Water Agency is trying to determine if it should be a separate entity from EI Dorado County. Director Wallace reported John Singlaub, TRP A's new executive director, assumes position on January 5. General ~anaaer: Richard Solbrig reported on two items: 1) Staff is considering the implications of the potential acquisition of a municipal utility system( s) in the Tahoe area. Staff will gather information regarding the various procedures that must be followed to achieve such an acquisition. BAKERSFIELD WELL TREATMENT PROJECT (continued) PAY~ENT OF CLAIt(1S BOARD MEMBERS STANDING COM~ITTEE REPORTS EL DORADO COUNTY WATER AGENCY PURVEYOR REPORT BOARD MEMBER REPORTS GENERAL MANAGER 1 STAFF REPORTS REGULAR BOARD MEETING MINUTES - JANUARY 2, 2004 PAGE - 6 3:30 P.M. GENERAL MANAGER I STAFF REPORTS (continued) MEeTING BREAK ADJOURNED TO CLOSED SESSION RECONVENED TO REGULAR SESSION ACnON I REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION 2) City staff has discussed the possibility of purchasing Lukin's Water Company. 3:20 - 3:30 P.M. 4:15 P.M. No reoortable Board action. Pursuant to Government Code Section 54956.95/Conference with Legal Counsel - Liability Claim Received from Ed Senior No reportable Board ~ction. Pursuant to Government Code Section 54956.9( c)/Conference with Legal Counsel - Anticipated Litigation: Pioneer Trail Waterline Replacement Near filter Plant No reoortable Board action. Pursuant to Government Code Section 54956( a)/Conference with Legal Counsel - Existing Litigation: STPUD vs. ARCO et. al., San Francisco County Superior Court Case No. 999128 No reportable Board action. Pursuant to Government Code Section 54956( a)/Conference with Legal Counsel - Existing Litigation: STPUD vs. F. Heise Land & Live Stock Company, Inc., William Weaver, Eddie R. Snyder, Crockett Enterprises, Inc., CIV S-02-Q238 MLS JFM United States District Court for the Eastern District of California. Sacramento. CA REGULAR BOARD MEETING MINUTES - JANUARY 2, 2004 PAGE - 7 No reportable Board action. Pursuant to Government Code Section 54956.9( a)/Conference with Legal Counsel - Existing Litigation re: Meyers Landfill Site: United States of America vs. EI Dorado County and City of South Lake Tahoe and Third Party Defendants, Civil Action No. S-01-1520 LKK GGH, United States District Court for the Eastern District of Ca. No reportable Board action. Pursuant to Government Code Section 54957 .6( a)/Conference with Legal Counsel- Existing Litigation: STPUD vs. Lakeside Park Assoc., et aI., County of EI Dorado, Superior Court Case No. SC20010165 ADJOURNMENT 4:15 P.M. -- -, Iii ... <( c C) z - I-- WI-- Ww :Ew en:!: 0::: en OZ 1--. 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