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2004 12-16SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" Richard Solbri~, General Manager James R. Jones, President BOARD MEMBERS Paul Sciuto, Assistant Manager Eric 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 DECEMBER 16, 2004 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, December 16, 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, Coyner, Bergsohn, Henderson, Hoggatt, Frye, Cocking, Hydrick, Attorney Kvistad. GUESTS: David Baccile / PFM Asset Management, LLC; Dennis Crabb, Alpine County Counsel. Moved Mosbacher / Second Comte / Passed Unanimously CONSENT CALENDAR to approve the Consent Calendar as submitted: a. 2004-2005 Vehicle Purchases -Authorized purchase of two vehicles from the State of California's competitively bid contract in the amount of $52,000; REGULAR BOARD MEETING MINUTES - DECEMBER 16, 2004 PAGE - 2 bo fo Tahoe Regional Planning Agency Mitigation Payment- Authorized payment to TRPA for 5% mitigation fee on new sewer connections in the amount of $83,916.25; Customer Service, Operations and Laboratory Facility - Approved Task Order No. 3-B to Smith Design Group in the amount of $10,193.63; Hydrocarbon Study, Lake Tahoe Erosion Control Grant No. DG-1151900-036 - Authorized entering into a Master Services Agreement with 2n~ Nature to continue and complete the study through October 15, 2005, in the amount of $91,700; Inspection and Materials Testing Services - Approved amendment to Task Order No. 1-A to Stantec Consulting, Inc., in the amount of $95,922.39; Grazing Permit Proposals - Awarded contract to the highest responsive, responsible proposer, Urrutia Ranch, in the amount of $16,620 per month. CONSENT CALENDAR (continued) David Baccile, PFM Asset Management, LLC, distributed a booklet and reviewed various components of the District's investment portfolio with the Board. Director Wallace reported the Finance Committee and staff previously reviewed a report from PFM and are satisfied with their performance. REPORT ON INVESTMENT OF RESERVE FUNDS ITEMS FOR BOARD ACTION Paul Sciuto reported the Master Agreement with Alpine County allows them to discharge up to 150,000 gallons per day at the District's expense. The District has negotiated with the County the details of the Master C-Line Connection Agreement, and worked out indemnity and liability issues. MASTER C-LINE CONNECTION AGREEMENT Dennis Crabb, Alpine County Counsel, thanked staff for assisting in the development of this agreement. Moved Wallace / Second Schafer / Passed Unanimously to approve the Master C-Line Connection Agreement with Alpine County, with final terms to be negotiated by staff and legal counsel, provided the terms do not ~;hange from the draft agreement presented. REGULAR BOARD MEETING MINUTES - DECEMBER 16, 2004 PAGE - 3 Jim Hoggatt reported the Engineering Projects Priority List is still being evaluated. It will be presented for consideration at a later date. No Board action. Moved Comte / Second Jones / Passed Unanimously to elect Director Eric W. Schafer to the office of Board President for the 2005 calendar year. Richard Solbrig presented President Jones with a token of appreciation for his service as 2004 Board President. Moved Comte / Second Schafer / Wallace Abstained / Passed to elect Director Duane Wallace to the office of Board Vice President for the 2005 calendar year. Moved Comte / Second Schafer / Passed Unanimously to approve payment in the amount of $1,185,898.67. ENGINEERING PROJECTS PRIORITY LIST FOR 2005 AND 2006 CONSTRUCTION SEASONS ELECTION OF BOARD OFFICERS: BOARD PRESIDENT ELECTION OF BOARD OFFICERS: BOARD VICE PRESIDENT PAYMENT OF CLAIMS Richard Solbrig gave a computerized PowerPoint presentation outlining the outcome of the recent reorganization process. A series of facilitated meetings that involved the entire organization were held using the interest based problem solving process. The structures, needs, and problems of several departments were reviewed and options were recommended. The final result was that several positions and/or their reporting structures were shifted, with a neutral cost impact and improved efficiency throughout the District. Water and Wastewater Operations Committee: The committee met December 13. Minutes of the meeting are available upon request. Finance Committee: The committee met December 16 and reviewed: reserve fund investments, the pension plan audit report, possible changes to the CalPers agreement, and MTBE fund analysis. It was noted that Grant Thornton has performed the last audit under their current contract; staff will initiate the RFP process to ensure the District continues to receive the most cost effective services possible. Minutes of the meeting are av~i~ble upon request. PRESENTATION OF REORGANIZATION RESULTS BOARD MEMBER STANDING COMMITTEE REPORTS REGULAR BOARD MEETING MINUTES- DECEMBER 16, 2004 PAGE - 4 Director Mosbacher reported on three items: 1 ) The District could be impacted if charter schools are allowed. 2) Contractors working on the B-line Export Pipeline Replacement project should complete the remaining miscellaneous items at a faster pace. 3) Santa Cruz offers incentives to those who use synthetic turf. The District should consider a similar program. BOARD MEMBER REPORTS Director Schafer reported on two items: 1 ) Lake Mead has lost water in excess of 20 feet. 2) The District should consider if creating a new position would be cheaper than paying engineering consultants. Director Wallace reported the second Lake Tahoe Leader- ship class graduated. He hoped the District will send a representative each year. President Jones reported he, along with Dennis Cocking, attended the ACVVA conference. They each attended different sessions that covered topics on water quality, perchlorate, MTBE safe harbor issues, and public perceptions about water agencies and special districts. Assistant General Mana,qer: Paul Sciuto reported on two items: 1 ) B-line Effluent Leak of October 23, 2004 - The Rain-for- Rent trailer was removed. Staff is continuing to negotiate with Cox & Cox on the administrative part of the contract. 2) A small sewer leak was reported on December 14. A lateral opened up and allowed silt to get in, which caused a clog that backed-up the sewer system. STAFF REPORT District Information Officer: Dennis Cocking reported on five items: 1) He met with the Department of Health Services to discuss the arsenic rule and compliance schedule. 2) He reported on his attendance at the ACWA conference. Several enterprise districts are unhappy with the amount of money taken from them by Proposition IA. The District is a non-enterprise district, which proved to be helpful. All special districts were asked to educate their communities on special districts: what they are, why they exist, and how they are beneficial. 3) He was selected to represent public utilities for Pathway 2007. REGULAR BOARD MEETING MINUTES - DECEMBER 16, 2004 PAGE 4) Thanks to the Washington D.C. representatives, money for the District was included in the Tahoe Restoration Act. 5) He attended the Meyers Roundtable meeting on December 15 to report to them on projects that affect the Meyers area, and update them on the B-line Export Pipeline Replacement Project. STAFF REPORTS (continued) 4:30 - 4:40 P.M. MEETING BREAK 4:40 P.M. ADJOURNED TO CLOSED SESSION 5:50 P.M. RECONVENED TO REGULAR SESSION ACTION I REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION No reportable Board action. Pursuant to Government Code Section 54956.9(c)/Conference with Legal Counsel - Anticipated Litigation (Three Cases) 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. 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. 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 REGULAR BOARD MEETING MINUTES - DECEMBER 16, 2004 5:50 P.M. ADJOURNMENT PAGE- $ James R. Jones, Board President South Tahoe Public Utility District ATTEST: ~ 7 ~/-,.~-"'~- ~ :~-'~ Katl~y Shar~lerk of the~oard South Tahoe Public Utility District :::::::::::::::::::::: [~lsi" ~':'