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2004 03-18 SOUTH TAHOE PUBLIC UTILITY DISTRICT IIBasic Services for a Complex World" RiChard. SOlbri~, General fI,1ana~er James R. Jones, President >.. o. BOARD MEMBERS Paul Sciuto, ~ssistant ~anayer Eric W. Schafer, Vice President Duane Wallace, Director ..... . ..... ..... . Mary Lou Mosbacher, Director ........... '" '0 Tom Comte, Director ..,.... ..... ... . REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT MARCH 18, 2004 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, March 18, 2004, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California. BOARD OF DIRECTORS: President Jones, Directors Wallace, Schafer, Comte, Mosbacher. ROLL CALL STAFF: Solbrig, Sharp, McFarlane, Sciuto, Cocking, Thiel, Brown, Hoggatt, Bird, Attorney Kvistad. Moved Wallace I Second Comte I Passed Unanimouslv to approve the Consent Calendar as submitted: CONSENT CALENDAR a. Alpine County's Summer 2004 Fish Purchases - Authorized payment to Alpine County in the amount of $36,000; b. Alpine County Facilities: Temporary Help - Authorized hiring a seasonal employee from April 1 through September 30, 2004, from Substitute Personnel & Business Services in the amount of $28,000; c. Highway 50 Waterline Replacement: Longs - Approved Change Order NO.4 to West Valley Construction Company, in the amount of $92,000; REGULAR BOARD MEEnNG MINUTES - MARCH 18, 2004 PAGE - 2 d. Highway 50 Waterline Replacement: Y to Winnemucca - Authorized staff to advertise for bids; CONSENT CALENDAR ( continued) e. Reimbursement Agreement Between City of South Lake Tahoe and the District for Park Avenue Drainage Basins, Manzanita - Pine Water Quality Treatment Basins - Approved Amendment No. 1 to the City in the amount of $6,337.40; f. 2004 Water Well Drilling - Authorized staff to advertise for bids to drill one test well and two replacement water supply wells; g. B-line Export Pipeline Replacement: Phase 3 - Approved Amendment No. 4 to Carollo Engineers in the amount of $46,800; h. The Local Taxpayer and Public Safety Protection Act- Adopted Resolution No. 2782-04 supporting proposed ballot initiative; i. 200412005 California Legislative Advocacy - Authorized execution of contract from January 1 - December 31, 2004, with Lynn M. Suter and Associates in the amount of $29,400; j. Approved Regular Board Meeting Minutes: March 4, 2004. ITEMS FOR BOARD ACTION Rick Hydrick reported the position of the District hydro- geologist is currently described as a "non-permanent position of open duration, with a six month notice prior to elimination of the position." Staff believes the District's future is inextricably bound to groundwater supply. The care with which staff addresses the District's aquifer re- sources, new regulations, groundwater management, and water operations is significantly enhanced by the skills of a District hydro-geologist. The current hydro-geologist has done a fine job of assisting the District through a maze of regulations, research projects, GIS implementation, and water development projects. The management group voted in agreement that this permanent position is necessary. PERMANENT POSITION: HYDRO-GEOLOGIST REGULAR BOARD MEETING MINUTES - MARCH 18, 2004 PAGE - 3 Moved Schafer 1 Second Comte 1 Mosbacher Voted No 1 -- Passed to approve District Hydro-geologist as a regular, full-time position. (Director Mosbacher voted no because when the position was originally proposed, it was to be a temporary position with a "sunset" date. She did not agree a permanent position should be added at this time.) The Board awarded a dual natural gas/propane generator set to the lowest bidder, Holt of California, on June 19, 2003. Holt has built the generator but has determined that it will not meet minimum power requirements per District specifications. Per the bid "default" section, Holt is res- ponsible for paying the difference between its bid price and the second low bidder's price; but upon further analysis, staff has determined that no bidder can meet the automatic fuel switchover specification. A dual fuel system is not nearly attractive without an automatic switchover. Staff has now concluded that a diesel generator will best meet the needs of the District. Diesel gensets tend to lend more power in a smaller package than gas gensets and space is critical at the Johnson station. Furthermore, diesel gen- erators are located at all the other large District sewage pump stations. Moved Comte 1 Second Schafer 1 Passed Unanimously to: (1) In compliance with Section 9 of the District's "General Bid Conditions," terminate Purchase Order #P13701, in the amount of $64,677.11, with Holt of California for a natural gas/propane generator set due to vendor's inability to meet equipment specifications per the bid conditions; and (2) Authorized staff to advertise for bids for a 250-kilowatt diesel generator set. Moved Schafer 1 Second Comte 1 Passed Unanimously to approve payment in the amount of $815,641.57. Finance Committee: The committee met March 10 and 11 to review the proposed 2004/2005 budget. Water and Wastewater Operations Committee: The committee met March 15. Minutes of the meeting are available upon request. PERMANENT POSITION: DISTRICT HYDRO-GEOLOGIST ( continued) JOHNSON SEWER PUMP STATION GENERATOR PAYMENT OF CLAIMS BOARD MEMBER STANDING COMMITTEE REPORTS Buildina Ad Hoc Committee: The committee met with staff BOARD MEMBER AD HOC to review the progress. COMMITTEE REPORTS REGULAR BOARD MEETING MINUTES - MARCH 18, 2004 PAGE - 4 Sewer Lateral Ad Hoc Committee: The committee made minor adjustments to the existing ordinance. The Opera- tions Committee will review the changes. Director Wallace reported on the following: 1) The agency is working on a JPA. 2) The ruling that was made in favor of the agency regarding water rights is being challenged in court. 3) Incumbent Supervisor Helen Bauman narrowly defeated Ray Nutting in the recent election. Director Wallace reported on his attendance at the Forest Health Initiative meeting on March 13. Director Schafer requested staff review the preferred alternative for the Stateline roundabout to determine if it will impact the District's water system. Director Mosbacher reported on five items: 1) She reported on her attendance at the District's B-line road closure public meeting and the Meyers Roundtable meeting. 2) At the March 16 Alpine County Board of Supervisors ._ meeting, a representative from a water bond coalition gave a presentation how smaller cities and counties can benefit from a water bond that was passed years ago. 3) Alpine County has expressed their satisfaction with the shared grant coordinator position. 4) A bill was introduced that if passed, will provide the State Water Resources Control Board, and ultimately Lahontan, with many millions of dollars. 5) Sorenson's request to discharge into the District's sewer system came before the Alpine County Board of Supervisors. There are many issues to negotiate that will probably not be finalized by June, which is when owner John Brissenden would like to begin discharging. Director Comte reported on three items: 1) He attended the City's Planning Committee Workshop regarding affordable housing and motel conversions. The District will be seeing more on this. 2) He attended the District's B-line road closure public meeting held in Meyers. One person attended. 3) He will attend the ACWA Legislative Symposium and will miss the March 29 Operations Committee Meeting; Director Mosbacher will take his place. BOARD MEMBER AD HOC COMMITTEE REPORTS (continued) EL DORADO WATER AGENCY REPRESENTATIVE REPORT BOARD MEMBER REPORTS REGULAR BOARD MEETING MINUTES -MARCH 18, 2004 PAGE - 5 President Jones reported that there was a provision in the - Forest Health Initiative for biomass, and suggested staff look into the feasibility of implementing a co-generation plan to produce electricity. General Manager: Richard Sol brig reported on three items: 1) EI Dorado County Air Board fees have increased steadily over the past few years. This year, new require- ments were imposed that require flow and hour meters be installed on all standby generators, for quite a substantial cost to the District. The County has chosen, but is not required, to impose these requirements even though they will not improve air quality. Staff will work with the Air Board to get relief from their new rules, and if a satisfactory agree- ment cannot be reached, staff will appeal to the EI Dorado County Board of Supervisors. 2) He gave an update on the B-line Phase 3 project: the traffic management plan has been submitted to Caltrans; USFS and Lahontan permits are being pursued; the forest conservation easement with the school district is being developed; trees along the project route have been cut and removed; and creek crossing plans have been submitted. 3) He is continuing to work with California Tahoe Conservancy to modify language in the legislation that pertains to utility relocation funding for erosion control projects. Assistant Manaaer: Paul Sciuto reported on two items: 1) He gave an update on the Bakersfield Well treatment system and associated costs (emergency declared 1/2/04). 2) He reported on his attendance at the WEF/A\/'MIA Joint Management Conference. Topics included: strategic planning, succession planning, and security measures. District Information Officer: Dennis Cocking reported on three items: 1) He distributed a list of public meetings the District will conduct regarding upcoming construction projects. He also reviewed the various notification methods, such as door hangers, public service announcements, paid advertisements, etc. that will be used to ensure property owners and the public are aware of the projects that may impact them. BOARD MEMBER REPORTS (continued) GENERAL MANAGER/STAFF REPORTS REGULAR BOARD MEEnNG MINUTES -MARCH 18, 2004 PAGE - 6 MEETING BREAK ADJOURNED TO CLOSED SESSION RECONVENED TO REGULAR SESSION ACTION / REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION 2) He is continuing to work with Kehoe's office to achieve _ an exemption for the District in the proposed water metering legislation, but it is doubtful an exemption will be granted. A phased implementation approach may be more likely to be approved. 3) The District submitted a resolution to support an initiative designed to prevent the state from taking property taxes from special districts. If the state is successful in their efforts, the ramifications to the District's will be disastrous. The Finance Committee will continue to monitor this issue. 3:45 - 4:00 P.M. 4:00 P.M. 5:15 P.M. GENERAL MANGER/STAFF REPORTS ( continued) No reportable Board action. No reportable Board action. No reportable Board action. Pursuant to Government Code Section 54956.9(c)/Conference with Legal Counsel - Anticipated Litigation: Pioneer Trail Waterline Replacement Near Filter Plant Pursuant to Government Code Section 54956(a)/Conference with Legal Counsel - Existing Litigation: STPUD vs. ARCO et. aI., San Francisco County Superior Court Case No. 999128 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-02-0238 MLS JFM United States District Court for the Eastern District of California. Sacramento. CA REGULAR BOARD MEETING MINUTES -MARCH 18, 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 54956.9(a)/Conference with Legal Counsel - Existing Litigation re: Complaint of Eminent Domain: People of the State of California vs. Tahoe Valley Center, et al., County of EI Dorado, Superior Court Case No. PC20040050 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 5:15 P.M. ADJOURNMENT ~~//-)~ ~ es R. 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