03-17-05
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SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Richard SOlbrig, General Manager
Eric W. Schafer, President
Paul Sciuto, Assistant Manag:;..
Duane Wallace, Vice President
BOARD MEMBERS
James R. Jones, Director
Mary Lou Mosbacher, Director
Tom Comte, Director
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
MARCH 17, 2005
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
March 17,2005,2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake
Tahoe, California.
BOARD OF DIRECTORS:
President Schafer, Directors Jones, Wallace, Cornte,
Mosbacher.
ROLL CALL
STAFF:
Solbrig, Sciuto, Sharp, McFarlane, Cocking, Coyner,
D. Johnson, Bergsohn, R. Johnson, Thiel, Hoggatt,
Attorney Kvistad.
Gregory Delagnes, Cruz Excavating
GUESTS
Staff requested the Requested Board Action on Consent
Item a. be corrected to read "effective January 1, 2005
through December 31, 2005."
CORRECTIONS TO THE AGENDA
OR CONSENT CALENDAR
Moved Cornte I Second Wallace I Passed Unanimouslv
to approve the Consent Calendar, including the change
described above:
CONSENT CALENDAR
REGULAR BOARD MEETING MINUTES - MARCH 17,2005
PAGE - 2 .
a. Professional Plan Review Services - Authorized
'-' renewing contract with Wolf Lodge Consulting and
BackfJow Services, LLC, effective January 1, 2005
through December 31, 2005;
b. Mobile Automatic Reading System - Authorized
contract with Western Nevada Supply in an amount
not to exceed $150,000;
c. Customer Service, Operations and Laboratory
Facility - Approved Change Order NO.5 to Don Garcia
Excavating and Paving, in the amount of $23,109.80;
d. Customer Service, Operations and Laboratory
Facility - Approved Task Order No. 3-D to Smith
Design Group for expanded design services in the
amount of $124,186.00;
e. Customer Service, Operations and Laboratory
Facility - Approved Task Order No. 3-E to Smith
Design Group in the amount of $38,313.94;
f. Incineration Equipment Disposal - Authorized disposal
\. of incineration equipment in a manner that is in the
best interest of the District;
g. Chlorination Equipment Disposal - Authorized staff to
dispose of chlorination equipment in a manner
that is in the best interest of the District;
h. Bayview, Helen and South Upper Truckee Wells
Drilling Project - Approved Change Order No. 1
to Zim Industries, Inc., in the amount of $61,027.26;
i. Sodium Hypochlorite Storage and Distribution -
Approved Change Order NO.1 to K.G. Walters
Construction in the amount of $30,677.21;
j. Management MOU (Memorandum of Understanding) -
Extended managers' MOU to the time current
negotiations are completed;
k. Approved Regular Board Meeting Minutes:
March 3, 2005.
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CONSENT CALENDAR
(continued)
REGULAR BOARD MEETING MINUTES - MARCH 17,2005
PAGE - 3
ITEMS FOR BOARD ACTION
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Staff requested Kennedy/Jenks Consultants submit
a proposal to furnish the survey and design services
for the Snowshoe Thompson ditch pipeline. This is the
section of ditch that goes above the Woodford Inn in
Alpine County that failed in 1997. At that time, the
District wanted to repair this section of ditch with a
pipeline, but was unable to do so because of opposition
from Heise Land and Livestock, so only ditch repairs
were made. Since Heise Land and Livestock is no
longer a part owner of the ditch, the District filed for
and received a $250,000 grant to replace this ditch with
a pipeline. The grant requires all work be completed
by December 2005.
Moved Mosbacher / Second Jones / Passed Unanimouslv
to approve Task Order No. 12 to Kennedy/Jenks Con-
sultants for design services in the amount of $87,000.
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Two general contractors submitted bids on this project.
Both bids were high, with the lowest bid received for
$2,043,188.64 from Cruz Excavating. Jim Hoggatt
recommended rejecting both bids because the lowest
bid was $500,000 over the amount budgeted for
this project. Staff will re-evaluate the project, including
possible redesign and value engineering in order to
bring the project within the budgeted amount. Since
this project is not an emergency or a requirement from
an environmental agency, there is time to re-evaluate
and re-bid by January or February 2006. Staff notified
both bidders that this would be their recommendation
to the Board. As a result, the lowest bidder, Cruz
Excavating, submitted a letter for the Board's
consideration, asking the Board to award the project as
a bid and then to issue a subsequent change order
reducing certain materials to realize significant savings.
Hoggatt stated changing the project specifications after
the bid process is not legal and recommended the Board
reject all bids. He encouraged both companies to partici-
pate when the project is re-bid. .
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Moved Wallace / Second Jones / Passed Unanimouslv
to reject bids received for this project, and directed staff
to re-evaluate the project.
SNOWSHOE THOMPSON NO.1
PIPELINE
WILDWOOD AVENUE SEWER
INTERCEPTOR
REGULAR BOARD MEETING MINUTES - MARCH 17,2005
PAGE - 4
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This contract is for temporary personnel for the District's
Water Conservation Program. The program was very
successful during the 2004 season in providing
educational and enforcement services in an effort to
implement the conservation efforts as required by the
Administrative Code. Last year the District employed
four educators; this year the plan is to hire two, and
increase to three depending on the need. The program
will be effective April 11, 2005, with the recruitment
of one Lead Water Educator. An additional educator
will be hired, effective May 30, 2005.
Moved Comte I Second Jones I Mosbacher Voted No I
Passed to authorize contract with Blue Ribbon Personnel
in the estimated amount of $60,000. (Director Mosbacher
voted no because she objected to contracting with a
company that is based outside of the local community).
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Presently, each Board member receives $400 per month,
plus benefits, for serving on the Board of Directors. The
compensation has been the same for at least two decades.
The District's legal counsel has reviewed the law
concerning Board member compensation, the Public
Utility Code and the Water Code. The Public Utility Code
provides for compensation on a monthly basis and the
Water Code provide for compensation on a per meeting
basis. Considerable discussion was held regarding the
best way to compensate Board members and whether
an increase is warranted, taking into account the
length of time since the last compensation increase,
expense to the District's customers in relation to the
services provided by the Board members, and the need
to attract and retain members of the community to serve
on the Board of Directors.
Two bills, the Ortiz and Salinas bills, are being proposed
to the legislature that will dictate parameters Boards must
follow. It was the consensus of the Board to postpone dis-
cussion regarding a change to the policy on Board member
compensation until legislation on either bill is finalized.
No Board action.
Moved Comte I Second Wallace I Passed Unanimouslv
to approve payment in the amount of $861,378.30.
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TEMPORARY EMPLOYMENT
SERVICES FOR TWO WATER
EDUCATORS
BOARD MEMBER COMPENSATION
PAYMENT OF CLAIMS
REGULAR BOARD MEETING MINUTES - MARCH 17, 2005
PAGE - 5
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Finance Committee: The committee met March 9 and 10
to review the 2005/2006 budget, ten-year financial plan,
and second quarter financial statements. A Board Work-
shop on the budget will be held March 23.
Water and Wastewater Operations Committee: The
committee met March 14. The main topics of the
meeting were the B-line Phase 3 and Wildwood
Sewer projects. Minutes of the meeting are available
upon request.
Manaaernent Neaotiations Ad Hoc Committee: The
committee meet March 11 and 15 to discuss the
managers' proposal.
Director Jones reported he traveled to Washington, D.C.
to speak before a coalition of agencies formed to fight
safe harbor language in the Energy Bill (language that
would protect oil companies from pollution lawsuits and
provide them with a tremendous amount of money to
reimburse them for the inconvenience of retrofitting their
refineries). All costs to attend this meeting were paid for
by the Association of Municipal Water Agencies.
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Director Mosbacher reported on her attendance at the
Alpine County Board of Supervisors meeting. A lawsuit
has been filed against the developer over the proposed
development in Markleeville. The Board of Supervisors
voted to renew the contract for the grant coordinator
position the District's shares with Alpine County.
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD MEMBER AD HOC
COMMITTEE REPORTS
BOARD MEMBER REPORTS
General Manaaer: Richard Solbrig reported on two items: GENERAL MANAGER REPORTS
1) The problem with the wastewater treatment plant's
microbiological process has been resolved, but the reason
for the upset has not been determined. Various changes
have been made in attempts to eliminate any probable
causes. The emergency retention basin and the extra
water in the holding pond were drained. No violations
occurred during the entire process.
2) A Strategic Plan was developed to help prioritize
projects, and will be incorporated into the budget process.
It was the consensus of the Board to hold a workshop to
discuss the Strategic Plan in detail.
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Director Wallace reported he saw an article in the
Sacramento Bee reporting that terrorists have listed
additional targets, and one was chlorine tanks. The
District has eliminated this risk by no longer using
BOARD MEMBER REPORT
REGULAR BOARD MEETING MINUTES - MARCH 17, 2005
PAGE-6
" . .. chlorine. Director Mosbacher noted that our streets
.., and residential neighborhoods are also safer since
tankers are no longer required to make chlorine
deliveries.
District Information Officer: Dennis Cocking reported on
his attendance at the ACWA Legislative Affairs meeting.
He also updated the Board on various bills that are of
interest to the District. Attorney Kvistad reported on a
bill that would provide hearing procedures for state and
regional water quality control boards to follow.
Chief Financial Officer: Rhonda McFarlane reported a
public meeting on the 2005/2006 budget will be held at
6:00 p.m., April 28, at the City Council Chambers
3:20 - 3:30 P.M.
3:30 P.M.
5:05 P.M.
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BOARD MEMBER REPORT
(continued)
STAFF REPORTS
MEETING BREAK
ADJOURNED TO CLOSED SESSION
RECONVENED TO REGULAR
SESSION
ACTION I REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION
No reportable Board action.
No reportable Board action.
No reportable Board action.
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Pursuant to Government Code
Section 54956.9(c)/Conference with
Legal Counsel - Anticipated Litigation
(One Case)
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
REGULAR BOARD MEETING MINUTES - MARCH 17, 2005
PAGE - 7
No reportable Board action.
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No reportable Board action.
No reportable Board action.
5:05 P.M.
ATTEST: =Ai-~~~g;;,
Kathy Shar, lerk of the oard
South Tahoe Public Utility District
Pursuant to Government Code
Section 54956. 9( c)/Conference
with Legal Counsel- Anticipated
Litiaation: Beth Jett / Kendall Pearce
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. Sch fer, ard President
South Tahoe Public Utility District
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