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01-20-05 \., SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" Richard Solbrig, General Manager Eric W. Schafer, President BOARD MEMBERS Paul Sciuto, Assistant Manager Duane Wallace, Vice President James R. Jones, Director Mary Lou Mosbacher, Director Tom Comte, Director REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT JANUARY 20, 2005 MINUTES \., The Board of Directors of the South Tahoe Public Utility District met in a regular session, January 20, 2005, 2:00 P.M., City Council Chambers, 1900 lake Tahoe Boulevard, South Lake Tahoe, California. BOARD OF DIRECTORS: Vice President Wallace, Jones, Comte, Mosbacher. President Schafer was excused for District business. ROLL CALL STAFF: Solbrig, Sharp, McFarlane, Sciuto, Hoggatt, Cocking, Frye, R. Johnson, Hydrick, Attorney Kvistad. GUESTS: Alex Handlers, Bartle Wells Associates Consent Item c. (Forklift Purchase) was brought forward for discussion prior to Board action. CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR Moved Mosbacher I Second Jones I Schafer Excused I Passed to approve the Consent Calendar as amended: CONSENT CALENDAR a. Cold Creek Booster Station Generator Set - ~ Authorized staff to advertise for bids; REGULAR BOARD MEETING MINUTES - JANUARY 20, 2005 PAGE - 2 \. b. Bulk Hypochlorite Purchase - Awarded bid to the lowest responsive, responsible bidder, Pioneer Americas, LLC, in the estimated amount of $166,237.50; c. See Consent Items Brought Forward; d. Management MOU (Memorandum of Understanding) - Extended Managers' MOU through March 18, 2005; e. Approved Regular Board Meeting Minutes: December 16, 2004. CONSENT CALENDAR (continued) CONSENT ITEMS BROUGHT FORWARD FOR ACTION I DISCUSSION Director Mosbacher received clarification that the forklift would be secure even though it will have a keyless ignition system. Moved Mosbacher I Second Jones I Schafer Excused I Passed to authorize the purchase of a new electric forklift from Toyota Material Handling Northern California in the amount of $22,000, plus tax and freight. FORKLIFT PURCHASE (Consent Item c.) '" Alex Handlers, Bartle Wells Associates, gave a Power- ANALYSIS OF MTBE FUND Point presentation on well production capacity and MTBE RESERVE fund analysis, and reported on the long-term financial adequacy of the District's MTBE fund. No Board action. ITEMS FOR BOARD ACTION Jim Hoggatt distributed a revised list of engineering project priorities. He also listed some of the projects that are scheduled to be done over the next three years. Some of the projects will be done by consultants, and some by in-house crews. Additional inspectors from outside services will be needed to oversee some of the projects. '-' The Operations Committee reviewed the priority list and determined the projects listed cannot be delayed (some will be a result of the new arsenic rule the District must comply with). The committee suggested staff consider ENGINEERING PROJECTS PRIORITY LIST FOR 2005 AND 2006 CONSTRUCTION SEASONS REGULAR BOARD MEETING MINUTES - JANUARY 20, 2005 PAGE - 3 hiring an additional engineer to assist with the sub- \., stantial number of projects in the five-year plan. Hoggatt noted the list is flexible due to the uncertain nature of regulations and emergencies, and can be rearranged when necessary. Moved Jones I Second Wallace I Schafer Excused I Passed to approve the priority list. Moved Comte I Second Jones I Schafer Excused I Passed to approve payment in the amount of $746,277.34. This item was added by an addendum to the agenda. All noticing requirements were met. \., Paul Sciuto reported the District has currently authorized payments to Cox & Cox, but has been unable to pay this amount due to stop notices filed by three of their subcontractors. Cox & Cox developed a Stop Notice agreement with the subcontractors agreeing that all future payments to Cox & Cox will be paid to the subcontractors on a percentage basis of the stop notice amounts, and Cox & Cox will indemnify it. If additional stop notices are received by the District on this project, Cox & Cox will have a new stop notice agreement signed by all parties prior to the release of any funds. This protocol for distribution of funds will be followed if additional notices are received. Moved Comte I Second Jones I Schafer Excused I Passed to authorize making progress payments via joint check to Cox & Cox Construction, Inc. and the subcontractors that have submitted stop notices on a pro-rata share based on total amount of stop notices; provided that 5% retention shall be withheld from any future increases in the contract amount, if any. Water and Wastewater Operations Committee: The committee met January 17. Minutes of the meeting are available upon request. \., Finance Committee: The committee met to discuss the potential change of CalPers to a defined contribution plan. Minutes of the meeting are available upon request. ENGINEERING PROJECTS PRIORITY LIST FOR 2005 AND 2006 CONSTRUCTION SEASONS (continued) PAYMENT OF CLAIMS B-L1NE EXPORT PIPELINE REPLACEMENT: PHASE 3 BOARD MEMBER STANDING COMMITTEE REPORTS REGULAR BOARD MEETING MINUTES - JANUARY 20, 2005 PAGE - 4 \., Buildino Ad Hoc Committee: Director Jones reported the committee met January 13. He distributed a cost estimate to Board members. Bids for the project will be going out soon, with construction anticipated to begin in spring. The budget shortfall for this project was discussed. BOARD MEMBER AD HOC COMMITTEE REPORTS Director Mosbacher reported on her attendance at the Employee Communications Committee meeting, and reviewed topics covered at the Alpine County Board of Supervisors meeting. BOARD MEMBER REPORTS Director Wallace reported on his meeting with Assembly- man Tim Leslie. Director Wallace reported he participated in the January 12 EL DORADO COUNTY WATER County Water Agency meeting by teleconference. AGENCY REPRESENTATIVE REPORT General Manaoer: Richard Solbrig reported staff attended GENERAL MANAGER REPORT a CTC (California Tahoe Conservancy) meeting regarding stormwater quality improvement. Assemblyman Tim Leslie's office is working with the CTC to ensure the language regarding utility relocation for erosion control projects is \., put back in the bill as originally written. 4:10-4:30 P.M. MEETING BREAK 4:30 P.M. ADJOURNED TO CLOSED SESSION 5:05 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(a)/Conference with Legal Counsel- Existing litigation: STPUD vs. ARCO et aI., San Fran- cisco County Superior Court Case No. 999128 No reportable Board action. Pursuant to Government Code Section 54956.9(c)/Conference with Legal Counsel - Anticipated Litigation (Two Cases) \. REGULAR BOARD MEETING MINUTES - JANUARY 20, 2005 PAGE - 5 \.., No reportable Board action. No reportable Board action. No reportable Board action. \., No reportable Board action. 5:05 P.M. '-' 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 aI., United States District Court for the Eastern District of Ca., Sacramento Division, Case No. CIV S-02-0238 MCEJFM 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 54956.9(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. Pursuant to Government Code Section 54957.6(a)/Conference with Labor Negotiators - Agency Negotiators: General Manager, Management Negotiations Ad Hoc Committee, Board of Directors; Employee Organization: Management Unit ADJOURNMENT & Eric W. Scha~ r, Bo d President South Tahoe Public Utility District \ I - w ~ '-' \., C) z - I- WI- Ww :iw U):I: 0::U) oz 1-. oz WC) 0::- _U) 01- u.U) OW 0:::J 0::C) llC( o m ~ ~ z ::::> -oJ o >. (/)w -0 ZZ 0(5 iffi ad: 0< u.a:: ~o (/)11. -z ~o u.i= 00 zz 00 -0 ""w Wa:: ~Q. ::E< Ot- 00 "Z tiel) <(- ~~ o - a:ik: mo ~!;;( ""c J:Z t-< -:::E ~t- Wo Oz Z .< o a: o o o < Z