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2004 11-04SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" James R. Jones, President BOARD MEMBERS Edc W. Schafer, Vice President Duane Wallace, Director Mary Lou Mosbacher, Director Tom Comte, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT NOVEMBER 4, 2004 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, November 4, 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, Coyner, Swain, Frye, Thiel, Bird, Attorney Kvistad. GUESTS: Tom Pavletic/Brown and Caldwell, Steve Sweet/Tahoe Regional Planning Agency, Dave Galicia. Closed Session Item g. was added by an addendum to the agenda. All noticing requirements were met. CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR Moved Comte / Second Schafer / Passed Unanimously to approve the Consent Calendar as submitted: CONSENT CALENDAR Bakersfield Well Treatment Project - Approved Final Change Order No. 2 to K.G. Walters Construction in the amount of $36,068.35; REGULAR BOARD MEETING MINUTES - NOVEMBER 4, 2004 PAGE - 2 bo Customer Service, Operations and Laboratory Facility - Approved Change Order No. 3 to Garcia Excavating and Paving in the amount of $25,328.65; CONSENT CALENDAR (continued) Customer Service, Operations and Laboratory Facility - Approved Change Order No. 4 to Garcia Excavating and Paving in the amount of $16,219.50; do B-line Export Pipeline Replacement: Phase 3 - Approved Change Order No. 4 to Cox & Cox Construction, Inc., in an amount not to exceed $35,460.84; Grazing in Alpine County - Authorized staff to advertise for bids for grazing Diamond Valley Ranch; f. Approved Regular Board Meeting Minutes: October 21, 2004. ITEMS FOR BOARD ACTION Carol Swain reported previous plans were to put a new telephone system in place at the time employees moved into the new facility. Since construction of the facility has been delayed, staff recommended proceed- ing with a replacement now to ensure system reliability. The request for proposals specify that the system must be transferable upon completion of the new facility. PHONE SYSTEM REQUEST FOR PROPOSALS Moved Schafer / Second Mosbacher / Passed Unanimously to authorize solicitation of Request for Proposals for a telecommunications system. Moved Schafer / Second Comte / Passed Unanimously to approve payment in the amount of $1,643,772.55. PAYMENT OF CLAIMS Water and Wastewater Operations Committee: The committee met November 1. Minutes of the meeting are available upon request. BOARD MEMBER STANDING COMMITTEE REPORTS Finance Committee: The committee met November 4 to discuss the water capacity charges with the consultant from Brown and Caldwell. Residential fire protection fees were also discussed. Director Wallace reported significant progress has been made on the SMUD relicensing issue. EL DORADO COUNTY WATER AGENCY PURVEYOR REPORT REGULAR BOARD MEETING MINUTES - NOVEMBER 4, 2004 PAGE President Jones reported he will attend the ACWA's California Blueprint Taskforce meeting on November 10. BOARD MEMBER REPORTS Director Mosbacher reported on two items: 1 ) Developers are back to the drawing board due to opposition received on the proposed development in Markleeville. 2) She attended the Alpine County Board of Super- visors on November 2 and was thanked for attending their meetings on behalf of the District. She stressed the importance communicating information to agencies connected to the District. General Mana,qer: Richard Solbrig and Board members discussed the draft Strategic Goals, Vision and Mission Statement. GENERAL MANAGER REPORT PUBLIC HEARING Public hearing notices were published in the October 26 and November 2 Legal Notices section of the Tahoe Daily Tribune. PUBLIC HEARING: WATER CAPACITY CHARGES President Jones opened the hearing at 2:35 p.m. New customers of the Distdct incur a water capacity charge to connect to the water system. This fee was last reviewed in 1999 and has been adjusted annually in accordance with the Engineering News Record's Construction Cost Index, National Average. Best management practice is to conduct a full review of the charge every five years. Brown & Caldwell, with the assistance of staff, has updated the Water Capacity Charges to reflect the current water system capacity and drafted an ordinance to enact the new fees (proposed to increase 4.1% on January 3, 2005, and each year through 2009.) Tom Pavletic, Brown and Caldwell, reviewed the methodology used to determine capacity charges. He also developed a fair and reasonable fire fee for domestic service to accommodate the new fire protection/sprinkler requirements from the City of South Lake Tahoe, and Lake Valley Fire Protection District's fire codes. REGULAR BOARD MEETING MINUTES - NovEMBER 4, 2004 ' PAGE - 4 Rhonda McFarlane reported the Finance Committee met to review capacity charges. In the past, the capa- city fee did not include the actual time spent by District crews to complete the physical connection. A connection fee will be proposed to ensure existing customers do not absorb the costs of new customers who wish to connect to the water system. In order to make it less complicated, one standard charge for connection fees will be developed and included in the ordinance. The revised ordinance will be presented to the Board at the November 18 Board meeting. PUBLIC HEARING: WATER CAPACITY CHARGES (continued) No public comments were received. President Jones closed the public hearing at 3:15 p.m. No Board action. 3:15 - 3:22 P.M MEETING BREAK 3:22 P.M. ADJOURNED TO CLOSED SESSION 3:35 P.M. RECONVENED TO REGULAR SESSION ACTION I REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION No reportable Board action. Pursuant to Government Code Section 54956.81Conference with Real Property Negotiators - Negotiating Parties: District Staff, South Tahoe Realty Century 21; Under Negotiation: 797 Emigrant Road, APN 021-261-33 Richard Solbrig discussed the Pathway 2007 application process. It was the consensus of the Board that the District Information Officer should complete an application and represent the District if selected. Assistant General ManaRer: Paul Sciuto reported on the B-line Export Pipeline Replacement Project: Phase 3. An extension was received to complete remaining minor items, but due to poor weather, the site will be winterized and the miscellaneous items will be completed next spring. GENERAL MANAGER REPORT STAFF REPORTS REGULAR BOARD MEETING MINUTES - NOVEMBER 4, 2004 PAGE After a week of exporting through the new B-line, it had to be shutdown because a faulty gasket on an access manhole blew, resulting in a significant leak. All depart- ments responded to the emergency. Sciuto outlined the export line shutdown: In order to connect the new B-line, exporting was shutdown and rerouted to the ERBs (emergency retention basins) from October 12-17. After the connection was made, exporting resumed, and the ERBs were completely drained by October 22. When the leak occurred on evening of October 23, exporting was again rerouted to the empty ERBs. The leak was repaired and exporting resumed on October 30. STAFF REPORTS (continued) District Information Officer: Dennis Cocking reported Proposition lA (a constitutional amendment to protect against property tax revenue shifts) and Proposition No. 65, easily passed in the recent election. 4:00 P.M. ADJOURNED TO CLOSED SESSION 6:15 P.M. RECONVENED TO REGULAR SESSION ACTION'/REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION , Moved Comte / Second Schafer / Wallace and Mosbacher Voted No / Passed to deny the appeal to revise the leave of absence guidelines. Pursuant to Government Code Section 54957/Public Employee Release No reportable Board action. Pursuant to Government Code Section 54956.9(c)/Conference with Legal Counsel- Anticipated Litigation (One Case) 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 No reportable Board action. Pursuant to Government Code Section 54956.9(a)/Conference with Legal Counsel- Existing Litigation: STPUD vs. ARCO et al., San Francisco County Superior Court Case No. 999128 REGULAR BOARD MEETING MINUTES - NOVEMBER 4, 2004 PAGE - 6 No reportable Board action. Pursuant to Government Code Section 54956.9(a)/Conference with Legal Counsel - Existing Litigation: STPUD vs. 1442.92 Acres of Land in Alpine County, California; et al., United States District Court for the Eastern District of Ca., Sacramento Division, Case No. CIV S-02-0238 MCE JFM 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. El 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. 6:15 P.M. ADJOURNMENT J/a~s R. Jones, ./_ o.~.r..d_pre_s, ident ~5'uth Tahoe PL~_~Utility District ATTEST: Kathy Sharp,, .,~erk of the B~ard South Tahoe'Public Utility District 0 0 0