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10-20-05 \., SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex "Vorld" Richard SOlbrig, General Manager Eric W. Schafer, President BOARD MEMBERS Paul Sciuto, Assistant Manag:;.. 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 '-' OCTOBER 20, 2005 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, October 20, 2005, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake Tahoe, California. BOARD OF DIRECTORS: President Schafer, Directors Jones, Wallace, Comte, Mosbacher ROLL CALL STAFF: Solbrig, Sciuto, Sharp, McFarlane, Cocking, Henderson, Hoggatt, Tomey, Bergsohn, Dingman, Swain, Thiel, Whalen, R. Johnson, Bird, Attorney Kvistad GUESTS: Nancy JoneslPFM Asset Management LLC, Dale Smithl Smith Design Group, Michael De Weese/FloorTec, Dave Beckman/K.G. Walters Construction, Bryan Todd/Roebbelen Contracting, Sean Honeggerl Roebbelen Contracting \., Moved Comte I Second Wallace I Passed Unanimously to approve the Consent Calendar as submitted: CONSENT CALENDAR REGULAR BOARD MEETING MINUTES - OCTOBER 20, 2005 PAGE - 2 \., a. Annual Adoption of Statement of Investment Policy - Adopted Resolution No. 2805-05, superseding Resolution No. 2795-04; b. Alpine County AnnuallmpactlMitigation/Compensation - Authorized payment of District's annual mitigation fee to Alpine County in the amount of $113,600; c. Cattle Grazing - Authorized advertising for bids for continued cattle grazing for 2006 season; d. Surplus Vehicle - Authorized Nationwide Auction Systems to sell a District surplus vehicle; e. Gardner Mountain Sewer Pump Station and Cornelian Drive Water Booster Pump Station - (1) Approved Change Order No.3 for K.G. Walters Construction Co., Inc., in the amount of $55,399.29; (2) Approved the Project Closeout agreement and Release of Claims; and (3) Authorized staff to file a Notice of Completion with the EI Dorado County Clerk; -., f. Approved Regular Board Meeting Minutes: October 6, 2005. Nancy Jones gave a PowerPoint slide presentation covering the current economic conditions, interest rates, and an overview of the District's portfolio. Since inception, the portfolio's yield has exceeded LAIF's by 0.41%. A handout of the presentation was distributed. CONSENT CALENDAR (continued) PRESENTATION: Investment Review by Nancy Jones, PFM Asset Manaaement LLC ITEMS FOR BOARD ACTION Jim Hoggatt reported three bids were received for this project at October 18 bid opening, ranging from $1,773,149 to $2,319,220. A careful review of each bid showed two minor deviations. The low bidder, K.G. Walters Construction, Inc., bid neglected to acknowledge Addenda 2 and 3 in the beginning of the bid, however they did acknowledge these addendas at the place provided at the end of the bid document. Moved Jones I Second Mosbacher I Passed Unanimously to waive the minor bid discrepancies described above, and award the bid to the lowest responsive, responsible bidder K.G. Walters Construction, Inc., in the amount of $1,773,149. -.., Moved Jones I Second Comle I Passed Unanimouslv to approve payment in the amount of $1,433,862.01. BA YVIEW WELL CONTROLS BUILDING FACILITY PROJECT PAYMENT OF CLAIMS REGULAR BOARD MEETING MINUTES - OCTOBER 20, 2005 PAGE - 3 '-' President Schafer opened the public hearing at 2:30 p.m. Jim Hoggatt reported Roebbelen Construction, Inc., the general contractor for the new buildings, has requested District approval to substitute a new subcontractor to furnish and install the flooring for the project (pursuant to Public Contracts Code Section 4107). The general and subcontractor are required to obtain a sample from the manufacturer of the material they are supplying for the project for the architect's approval. The carpet samples supplied by the current subcontractor, FloorTec., Inc., were rejected by the architect due to not meeting the criteria in the project specifications. According to Roebblen Construction, FloorTec has continued to submit products they intend to use for this project. These products, as determined by the architect, are not equal to the specified products. As a result, Roebbelen has determined that this subcontractor will not provide the specified product or an equivalent, and is therefore requesting that FloorTec be replaced. -. FloorT ec has submitted an objection to being replaced on this project stating the product they have submitted is equal or superior to the product listed in the project specifications, and that the architect is incorrect in rejecting the material. The Board heard and considered all evidence concerning the request to substitute a different flooring subcontractor to replace the current flooring subcontractor, including objections from FloorTec representative Michael De Weese, reasons why Roebbelen desired to replace FloorTec, and the architect's interpretation of applicable provisions of contract documents. President Schafer closed the Public Hearing at 3:30 p.m. -.., The following findings were made: The specifications set by the reference to Manning Carpets had a standard as to the quality and characteristics of the carpet that was needed (having to do with face weight, width, visual appearance, color value, pattern, and texture); the flooring that was proposed by FloorT ec did not meet those criteria as set forth in the project specifications; FloorT ec cannot provide the product as specified, and on that basis the products are not equal. PUBLIC HEARING: CUSTOMER SERVICE, OPERATIONS AND LABORATORY FACILITY - REQUEST FOR SUBSTITUTION OF FLOORING SUBCONTRACTOR REGULAR BOARD MEETING MINUTES - OCTOBER 20, 2005 PAGE - 4 -. Moved Comte I Second Jones I Mosbacher Voted No I Passed to authorize substitution of a new flooring sub- contractor as requested by Roebbelen Construction, Inc., for not meeting the criteria specified in the project's specifications. (Director Mosbacher voted no because she felt that "durability" should have been part of the criteria listed in the project specifications.) Water and Wastewater Operations Committee: The committee met October 17. Minutes of the meeting are available upon request. Building Ad Hoc Committee: Director Mosbacher accom- panied staff on a tour of EI Dorado Irrigation District's new building and boardroom. Leaal Services Ad Hoc Committee: Directors Schafer and Wallace were appointed to serve on this committee to review Hatch & Parent's representation agreement. PUBLIC HEARING (continued) BOARD MEMBER STANDING COMMITTEE REPORTS BOARD MEMBER AD HOC COMMITTEE REPORTS President Schafer reported he requested Board members BOARD MEMBER REPORTS to submit to him a schedule of trips planned for the remainder of the fiscal year, and received one written report and one verbal. He reminded them to include an estimate of the total amount each trip is expected to cost. \., Director Mosbacher reported she met David Prentice, the new legal counsel for Alpine County, who replaced Dennis Crabb. President Schafer reported on two items: 1) The Board's travel must be kept within the budget. 2) The new mission statement will be used in the annual CAFR. Director Mosbacher reported the Alpine County supervisors approved a contract with DRI (Desert Research Institute) for water monitoring. Information gained will be shared with the District. '-' Director Comte attended the last meeting. Most of the meeting revolved about the agreement reached with SMUD (Sacramento Municipal Utility District). The agency also considered amending their agreement with Hatch & Parent to include travel costs. EL DORADO COUNTY WATER AGENCY PURVEYOR REPORT '" ~ REGULAR BOARD MEETING MINUTES - OCTOBER 20,2005 PAGE - 5 General Manaaer: Richard Solbrig reported on his attendance at the Lake Tahoe Agency Executives meeting that was held to coordinate interactions with the Tahoe Science Consortium. STAFF REPORTS 4:10 - 4:20 P.M. MEETING BREAK ADJOURNED TO CLOSED SESSION RECONVENED TO REGULAR SESSION 4:20 P.M. 5:20 P.M. ACTION I REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION a. 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 Eastem Distrid of Ca., Sacramento Division, Case No. CIV S-02-0238 MCE JFM No reportable Board action. b. 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. 5:20 P.M. ADJOURNMENT t Eric W. Schafer, Boa d resident South Tahoe Public lIity District \,.. ATTEST>~S~I~~~ South Tahoe Public Utility District ~ - Iii ~ ~ ~ C) z - I- WI- Ww :iw tn:J: o::tn OZ 1-- oz WC) 0::- _tn 01- LLtn OW O:J 0::C) <C o m ~ ~ z :> ..J o >. CJ)W -0 zz Q(5 iffi ~~ U-a:: ~o CJ)U- -z J:o ~- U-~ 00 zz 00 -0 tu~ ~D. :!< o~ 00 ..z t;CJ) <0 Zz ~< o - a::~ mo ~~ ~c J:Z ~< -:! ~~ Wo Oz Z (5 a:: o o ~ Z . ~~ ~ ~ ! :.::11::.:.::::::::.:.: .u _ ~'~ ... ::::I::::t~:::j~:: ~ ,~ ~ ~ @) ~ r~~1~ II D ,--... 'Q'-- o r-- 0 ::::- ;:) '... ~ i .J'- c- t"'l I^ -" ' 1.,,, ~ ~ 'J'- 11' tv 'J" ~ ..9. 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