03-02-06
'-'
SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
. .. Richard ~~'bri~'.?eneral ~~n~~er.
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
MARCH 2, 2006
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a regular session,
\., March 2, 2006, 2:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South
Lake Tahoe, California.
BOARD OF DIRECTORS: ROLL CALL
President Schafer, Directors Wallace, Comte, Mosbacher.
Director Jones was excused for District business.
STAFF:
Solbrig, Sciuto, Sharp, McFarlane, R. Johnson, Bergsohn,
Nolan, Curtis, Hoggatt, Coyner, Adams, Attorney Kvistad
Consent Item b. (Claim for Damages Received from
Donna Barry), and Consent Item h. (Board Policy Section
2010: Election of Directors) were brought forward for
discussion prior to Board action.
CORRECTIONS TO THE AGENDA
OR CONSENT CALENDAR
Staff requested Consent Item c. (Boardroom Audio
Visual Equipment), and Consent Item g. (Board Policy
Section 1020: Conflict of Interest) be removed from
the agenda. These items will be placed on a future
agenda for consideration.
~
REGULAR BOARD MEETING MINUTES - MARCH 2, 2006
PAGE - 2
Staff received a request by Roebbelen Construction to
~ hold a public hearing to consider the substitution of the
roofing subcontractor to furnish and install roofing for the
customer service, operations and laboratory facility. This
request was received subsequent to the regular Board
meeting being posted. Due to the impacts to the construction
schedule, it must be added as an addendum to the agenda
for immediate resolution.
Moved Mosbacher I Second Comte I Jones Excused I
Passed to add this item as an addendum to the agenda:
2:45 p.m. Public Hearing regarding the substitution of the
roofing subcontractor for the customer service, operations
and laboratory facility.
Moved Comte I Second Mosbacher I Jones Excused
Passed to approve the Consent Calendar as amended:
a. Boom Lift - Approved purchase of one boom lift
from RSC Equipment Rental in the amount of
$58,077.25;
b. See Consent Items Brought Forward;
'-' c. Item removed;
d. Bayview Well Controls Building Facility Project -
Approved Utility Facility Agreement #06-34265-5
for electric service to the Bayview Well site
(701 San Francisco Ave., South Lake Tahoe, CA),
between Sierra Pacific Power Company and
the District;
e. Arsenic Treatment Study - Approved revised
proposal from Carollo Engineers dated February 2,
2006, to complete Phase 1 as outlined in their revised
Scope of Work and budget, in the amount of $36,825;
f. Board Policy Section 1000: Purpose of Board Policies-
Approved additional language outlining ethical
objectives of policy;
g. Item removed;
h. See Consent Items Brought Forward;
~
CORRECTIONS TO THE AGENDA
OR CONSENT CALENDAR
CONSENT CALENDAR
REGULAR BOARD MEETING MINUTES - MARCH 2, 2006
PAGE - 3
~
i. Board Policy Section 2040: Directors' Compensation -
Approved amendment clarifying benefits and eligibility
for same;
j. Board Policy Section 2100: Code of Ethics -
Approved additions to further define and strengthen
the policy, including reference to applicable Board
policy and laws related to ethics training;
k. Board Policy Section 2130: Training, Education, and
Conferences - Approved amendments adding lan-
guage covering ethics training requirements resulting
from AB 1234.
CONSENT CALENDAR
(continued)
CONSENT ITEM BROUGHT FORWARD FOR DISCUSSION I BOARD ACTION
On July 26, 2005, a sewer overflow occurred at 1623
Arrowhead. District staff made numerous efforts to work
with the owner to remediate and cleanup the overflow.
The property owner was uncooperative and refused to
allow the District to proceed with the cleanup. On
January 27,2006, a claim was received from the property
. owner in the amount of $127,966.08. The District, through
\., its insurance carrier, offered $48,000.00 to settle the claim.
The property owner has refused to accept the offered
amount.
Lisa Coyner and Mike Adams reported the claimant
allowed sewage to remain in her home since July 2005.
The District should not be responsible for mold damage
since the claimant assumed that risk by not allowing the
home to be cleaned in a timely manner. District staff will
continue to work with the claimant to resolve other issues
related to the overflow.
A statement from the claimant was distributed prior to
the Board meeting since she was unable to appear in
person.
Moved Comte I Second Wallace I Jones Excused I
Passed to reject the claim received from Donna Barry.
Director Mosbacher requested the word "all" be added
to Section 2010.51 to clarify that the Board may elect to
adopt term limits on all members of the District Board.
\., -
CLAIM FOR DAMAGES RECEIVED
FROM DONNA BARRY, RE:
1623 ARROWHEAD AVENUE
(Consent Item b.)
BOARD POLICY SECTION 2010:
ELECTION OF DIRECTORS
(Consent Item h.)
REGULAR BOARD MEETING MINUTES - MARCH 2, 2006
PAGE - 4
Moved Mosbacher I Second Comte I Jones Excused I
~ Passed to approve additional language regarding:
i. .. (1) Conditions for spouse of employee wishing to run for
a Board seat; (2) Incompatible duties when dual public
offices are held; (3) Information contained in Board
member's candidate statement for general election; and
(4) Addition of the word "all" to Section 2010.51 as described
above.
BOARD POLICY SECTION 2010:
ELECTION OF DIRECTORS
ITEMS FOR BOARD ACTION
Jim Hoggatt reported four general contractors attended
the mandatory pre-bid held for this project. Only one bid
was received at the February 28 bid opening. A careful
review and analysis of the bid showed no deviations.
Hoggatt explained the bid received far exceeded the
engineers estimate due to ever-increasing costs for
pipe, PVC, etc., and recommended acceptance of the
bid for this critical and necessary project.
Moved Comte I Second Mosbacher I Jones Excused I
Passed to award bid to the lowest responsive, responsible
.. .. bidder, White Rock Construction, Inc., in the amount of
., $3,284,655.
Moved Comte I Second Wallace I Jones Excused I
Passed to approve payment in the amount of $903,970.54.
Water and Wastewater Operations Committee: The
committee met February 27. Minutes of the meeting are
available upon request.
Finance Committee: The committee met for a full day
on February 28 to review the draft budget.
Lukins Water Company Ad Hoc Committee: The
District received information from the Lukins Water
Company. When time allows, staff will review the
documents and then meet with the ad hoc committee.
Director Wallace reported he could not attend the last
meeting of the water agency, but the main topic of
discussion was the idea to change the governance of
the water agency board. EID wants a permanent seat
on the board and does not want to be rotated out.
\.,
r-.....--
2006 HIGHWAY 50 WATERLINE
REPLACEMENT: RENO TO MEEKS
AND BIGLER TO SAN JOSE
PAYMENT OF CLAIMS
BOARD MEMBER STANDING
COMMITTEE REPORTS
BOARD MEMBER AD HOC
COMMITTEE REPORTS
EL DORADO COUNTY WATER
AGENCY PURVEYOR REPORT
REGULAR BOARD MEETING MINUTES - MARCH 2, 2006
PAGE - 5
ITEMS FOR BOARD ACTION
4w
(This addendum was added to the agenda by a
unanimous vote of the Board at the beginning of the
meeting.)
Attorney Kvistad explained this item was added to the
agenda to allow the subcontractor an opportunity to
object to the substitution. The subcontractor did not
appear for this_public hearing, but has until March 3
to object. .
Moved Comte I Second Wallace I Jones Excused I
Passed to conditionally approve the substitution
request provided there is no objection from the
subcontractor (Andy's Roofing) by Friday, March 3.
Director Wallace reported the Clean Water Act classifies
almost any body of standing water as wetlands even
though many of these waters are located far away from
rivers and lakes. .
t ... General Manaqer: Richard Solbrig reported on three
.., items:
1) The importance of asset management was accentuated
at the AWWA conference. The District will co-host a joint
asset management training conference March 8 and 9.
2) He will research the intent behind the invitation for
the District to participate in a MOU with the Corp of
Engineers and other utility district's around the lake to
jointly apply for grant funds to remove sewer lines out
of shore zones. Once he has a full understanding, he
will give his recommendation to the Board.
3) Recent rains resulted in some inflow to the system,
but ceased when the rain turned to snow.
Chief Financial Officer: A meeting was held with State
of California Office of Emergency Services regarding
flood damages suffered over the New Year's storms.
Leqal Counsel: Attorney Kvistad thought the District
should work to be added to one of the new design/build
related bills being introduced by Orange County.
\.., 3:30 - 3:40 P.M.
2:45 P.M. PUBLIC HEARING:
CUSTOMER SERVICE,
OPERATIONS AND LABORATORY
FACILITY
BOARD MEMBER REPORTS
GENERAL MANAGER REPORTS
ME.ETING BREAK AND ADJOURN-
MENT TO CLOSED SESSION
REGULAR BOARD MEETING MINUTES - MARCH 2, 2006
PAGE. 6
4w
RECONVENED TO REGULAR
SESSION
4:35 P.M.
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 re:
Beth Jett, Kendall Pearce, and
Pearce Family Trust Dated 1-20-88
vs. STPUD, Cox & Cox Construction,
Inc., a California Corporation, Nimbus
Engineers, a Nevada Corporation and
Does 1-100, Inclusive, Civil Action
No. PC 20050567, Superior Court,
County of EI Dorado. State of Ca.
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, Ca.; et aI., 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. EI Dorado County and
City of South Lake Tahoe and Third
Party Defendants, Civil Action No.
S-01-1520 LKK GGH, U.S. District
Court for the Eastern District of Ca.
No reportable Board action.
Pursuant to Government Code
Section 54956.9(b )/Conference with
Legal Counsel - Anticipated
Litigation: Liability Claim Against
STPUD Received from D. Barrv
4:35 P.M.
ADJOURNMENT
\.,
REGULAR BOARD MEETING MINUTES - MARCH 2, 2006
PAGE - 7
~
Eric W. Schafer Boa President
South Tahoe Public Utility District
ATTEST: -#~~--' ~
Kathy Sharp, rk of the Boald .
South Tahoe Public Utility District
\.,
'-'
J '
Kathy Sharp
rf:e ~.
~
-A-Yoc.-J--. W J -3/d..{bb Mtot-...;}QsPage 1 of2
Gn~ t~.b .
,.
From: Donna Barry [don nata hoe 1 @juno.com]
....nt: Thursday, March 02, 200610:51 AM
To: ksharp@stpud.dst.ca.us
Subject: URGENT: Statement for today's Board Meeting
Kathy Sharp:
Thank you for your offer to submit any documents at the 3/2/06 Board Meeting for me. As it turns out, the weather
is not cooperating and I just can not be there today for the meeting. So I ask that you please print out the number of
copies of the following statement that I wanted to make at the board meeting and distribute it to the necessary
people. I will be in Tahoe this week (unti13111/06) and can be available to talk to anyone about my claim if~ley
wish. You can reach my on my cell phone at 650-303-3323.
Thanks again... Donna Barry
*.......................***.***********.*****..*..****...***********.*************..*.*******
March 2, 2006
STATEMENT FROM DONNA BARRY
Re: District Staff recommendation to reject my damages claim, for my losses due to black water sewage spill, in my
Certy located at: 1623 Arrowhead Avenue. South Lake Tahoe. Ca.
To give you a little background regarding my claim for property damages. I bought a small (864 sf) house in South
Lake Tahoe in May 2002. I immediately remodeled the house, then after 6 months living there, I rented it out. My
long term intentions were to eventually retire there.
On July 26,2005 there was a grease build-uplback-up in the main sewer line near my house. This build-up caused
the entire neighborhoods raw sewage to flood my house for several hours undetected.
As a result, my house is unlivable. The representatives at South Tahoe Public Utility District moved my tenant into
another residence, paid his rent and utilities for several months then eventually paid him for all of his furniture and
personal property losses. They have since then moved.him from the temporary property and sent him on his way.
I had been in contact with Lisa Coyner, Customer Service Manager at STPUD and her claims adjuster Leslie
Borrego at Carl Warren & Co.. I was assured that my rents would be paid and all damages would be repaired. I set
out to get the necessary estimates for clean-up, removal and repair/replacement over the next several months. All
awhile letting STPUD and/or Carl Warren representatives aware of my progress via letters and calls.
I did not receive an otTer for $48,000. I received a settlement offer dated December 12,2005 for the amount of
$33,585.96 based on an estimate provided by Yonkers Construction. That estimate, in turn, states that it is only "to
perform some repairs on some areas damaged by sewage backup" and that "this cost estimate is being prepared
without the benefit of an expert report assessing possible hidden damages from sewage contamination." The letter
admits, there are additional clean-up costs. Therefore this offer does not represent just compensation. My claim
~nted an analysis from Environmental Testing & Consulting for the scope offacterial and fungal remediation.
. .. d on the scope of that remediation, First General Fire & Flood Restoration estimated the work would cost
$25,535.35. The estimate does not include the cost to restore the premises. Myers Construction estimated the
reconstruction cost to be $101,488.73.
On January 24, 2006, I filed the claim for repairs with STPUD with all of the requested estimates attached. There
3/2/2006
,.
'. .-11
Page 2 of2
,was no total amount given as all figures/costs etc. had not yet been received by me.
I did not hear from either Carl Warren or STPUD representatives, so I made a follow-up call on February 24,06, I
f1i-{ not receive a return call but did receive a letter dated February 21, 06 stating that STPUD District Staff intended
\.,ecommend that you reject my claim at this meeting.
Of course I was shocked. I do not understand how the District could now "reject" my claim. I myself had absolutely
nothing to do with the damages to my house. I was told that it "would all be fixed" just "submit my claim", of
which I worked diligently on. My tenant was taken care of and now he is gone. I on the other hand have been left
with a house that is destroyed. On top of that I have monthly mortgage payments and other reoccurring costs such
as Water, Garbage, Sewage, Taxes, and Insurance all that I have been paying without the benefit of my rents to
offset these costs. This damage is due to this sewage spill, which I was told would be repaired and that my costs
would be reimbursed.
-'-.
Now that I have provided all the forms, estimates for the repair and the clean-up along with my personal fmancial
losses, I am being "rejected".
I do not understand the moral or legal reasons for this response.
I am pleading with the board to review my case, look at the estimates and costs I have incurred and I urge the board
to "do the right thing", think about if it was your dream, retirement home. It may not be a large home on the lake
but it is, or was, my dream. Now it is nothing but a empty, smelly, molded little house caught in the middle of a
"decision of the STPUD staffers" who now want to "reject me".
Please use your sense of morality, honesty and integrity and at least look at my claim, I am only asking for the
necessary repairs and reimbursement of the losses and expenses I have endured. If you only knew just how much
t;' effort, and heartache that has gone into this ordeal you would not "reject me", you would fix my house and
this heartache that I have been going through for the last six months. This board should not reject my claim.
Under Government Code Section 912.6(a)(3). It can fmd my claim is a proper charge but is for an amount greater
than is justly due and allow the claim in the amount justly due and reject it as to the balance of the amount claimed.
Under Section 912.4(b) the board and I can agree to extend the 45-day period for board action while I provide your
adjusters with more information.
Thank you for listening and giving me this opportunity to express my opinions.
Sincerely,
Donna Barry
Property Owner
I request this document to be added to the meeting minutes and as a permanent record of my views and requests
expressed here today.
\.
3/2/2006
\.,
Iii
~
-.,
\.,
C).
z
-
I-
WI-
Ww
:iw
enJ:
0:: en
oz
1-.
oz
WC)
0::-
_en
01-
LLen
OW
0::)
0::C)
<C
o
m
~
~
Z
::>
...J
o
>
CJ)w
-0
zz
0<
-0
~z
:!w
gj~
~~
o
~u-
J:Z
1-0
u-i=
05
zz
00
~frl
...J~
D..D..
:!<
01-
00
~~
<
zO
3:~
0;>:
~~
~o
J:!;(
1-0
J:Z
1-<
-:!
3:1-
Wo
~z
~
o
o
o
<
Z
L
~tl':::
::'::I~
:;:::'"
:ill::l:::
I
..I........~.
Il
.:.:.
:::::
:::::
~~r
l'
:1:::1::'1:
~~~~:. ::
I
':'.I."v.:,:,.:
.......:.......... .....
:,::....:...:::::1':
N
....I....:W..
i
.,
I