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05-04-06 SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" Richard Sol brig, 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 MAY 4, 2006 MINUTES The Board of Directors of the South Tahoe Public Utility District met in a regular session, May 4,2006,2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe, CA BOARD OF DIRECTORS: President Schafer, Directors Jones, Wallace, Comte, Mosbacher. ROLL CALL STAFF: Solbrig, Sciuto, Sharp, McFarlane, Cocking, Brown, Bird, Curtis, Adams, Attorney Kvistad GUESTS: Tom Rusinko, Rusinko Construction; Ed James, Carson Water Subconservancy District; Lynn Orphan, Kennedy/ Jenks Consultants Tom Rusinko reported to the Board that he paid for water COMMENTS FROM THE AUDIENCE and sewer connections prior to his construction on Clement Street. After breaking ground on May 1, he dis- covered there was no sewer main to hookup to. He felt this should have been disclosed when he paid his fees, and the District should be responsible for extending the sewer main to reach his lot. REGULAR BOARD MEETING MINUTES - MAY 4,2006 PAGE. 2 The Board asked Mr. Rusinko to submit a written request to staff, and staff will bring it to the Board at a future meeting with a recommendation. No Board action. Moved Comte / Second Jones / Passed Unanimously to approve the Consent Calendar as submitted: a. Office Furniture - Authorized purchase of Hon office furniture and services from Kahl Commercial Interiors, Inc., from the State of Nevada's competitively nego- tiated contract, in the estimated amount of $40,000; b. Bayview Waterline - Approved Task Order No.3 to Auerbach Engineering, in an amount not to exceed $20,000; c. Collection System Master Plan - Authorized staff to request proposals from consulting engineering firms to conduct a Collection System Master Plan; d. Urban Water Management Plan - Approved proposal from Kennedy/Jenks Consultants to prepare the District's 2005 Urban Water Management Plan, in an amount not to exceed $27,000. COMMENTS FROM THE AUDIENCE (continued) CONSENT CALENDAR ITEMS FOR BOARD ACTION The District is a partner in the Proposition 50 Integrated Regional Water Management Plan (IRWMP) grant with three pending projects: (1) waterline replacement, (2) water conservation program, and (3) Indian Creek Reservoir TMDL. A requirement of the grant is that an economic analysis of these projects, along with the nine other projects that comprise the grant, be compl~ted. Thirteen partners within the grant will be sharing costs of the analysis. In the interest of completing the work in a timely manner and ensuring the analysis is performed competitively, staff requested the District act as the lead in contracting for these services. Proposals were requested from two consulting firms. One declined due to the tight timeframe. Due to the grant dead- line, staff recommended acceptance of the proposal received from Kennedy/Jenks Consultants. ECONOMIC ANALYSIS, PROPOSITION 50 INTEGRATED REGIONAL WATER MANAGEMENT PLAN GRANT REGULAR BOARD MEETING MINUTES - MAY 4,2006 PAGE. 3 Moved Comte / Second Mosbacher / Passed Unanimously to approve proposal from Kennedy/Jenks Consultants to prepare the District's economic analysis that is required for the Proposition 50 Integrated Regional Water Manage- ment Plan grant, in the amount of $30,000. Randy Curtis reported one bid was received at the May 2 bid opening. He recommended the bid be rejected since the per patch charge was five to ten times higher than average, plus staff's estimate was $130,000 and the bid came in at over $1 M. Moved Mosbacher / Second Comte / Passed Unanimously to reject the bid received from California Pavement Main- tenance Company, Inc., and authorized staff to re-advertise for bids. Ed James, Carson Water Subconservancy District, request- ed the Board to authorize staff to divert and monitor flows out of the West Fork of the Carson River into Indian Creek Reservoir, using Snowshoe Thompson ditch. He explained there was a significant amount of runoff this year that could be put to beneficial use rather than losing it. The Board discussed their concerns including regulatory approvals, the impact on TMDLs, seepage, costs to the District, etc. It was the consensus of the Board to allow Ed James to address these issues, gather approvals, and bring back to staff to review and determine the feasibility of this request. No Board action. Moved Jones / Second Wallace / Passed Unanimously to approve payment in the amount of $1,157,900.32. Water and Wastewater Operations Cc., nmittee: The committee met May 1. Minutes of the meeting are avail- able upon request. Lukins Water Company Ad Hoc Committee: The City Manager was heard on the radio talking about the fire improvements that need to be made in Lukins' service area. Buildinq Ad Hoc Committee: The committee met with staff to discuss recovery of project delays that ECONOMIC ANALYSIS, PROPOSITION 50 INTEGRATED REGIONAL WATER MANAGEMENT PLAN GRANT ( continued) 2006 ASPHALT PATCHING SERVICES REQUEST TO APPEAR BEFORE THE BOARD FROM ED JAMES, CARSON WATER SUBCONSER- VANCY, RE: INCREASED WATER STORAGE AT INDIAN CREEK RESERVOIR PAYMENT OF CLAIMS BOARD MEMBER STANDING COMMITTEE REPORTS BOARD MEMBER AD HOC COMMITTEE REPORTS REGULAR BOARD MEETING MINUTES - MAY 4,2006 PAGE. 4 occurred in the early stages of the project. A meeting with the contractor is scheduled for June 12 to determine the actual costs resulting from the delays. BOARD MEMBER AD HOC COMMITTEE REPORTS ( continued) July 28 is the anticipated move-in date for the customer service portion of the new building. The operations center and laboratory will be moved August 13. Indian Creek Reservoir Water Storaae Ad Hoc Committee: The committee met May 3 to discuss the request to increase the water stored in the reservoir that was received from Ed James, Carson Water Subconservancy District. Director Comte reported he attended the Employee Communications Committee meeting and spoke about the importance of ethics, which spurred an employee to write a newsletter article about ethics in the workplace. BOARD MEMBER REPORTS Director Jones reported he, along with Dennis Cocking, will attend the ACWA Conference the week of May 8. General Manaaer: Richard Solbrig reported on two items: GENERAL MANAGER REPORTS 1) Staff met with the City and County fire department representatives to discuss the new residential fire protection requirements. Requirements from each entity differed, and the goal was to make implementation of the new require- ments as "customer service friendly" as possible. Their original intention was to trigger these requirements when homeowners performed any type of remodeling. It now appears that this will be changed so that any significant remodeling must comply with the new requirements. 2) The permits for the Highway 50 waterline project will be received May 5. Staff met with TRPA to address their concerns that replacing the waterline is not growth inducing, thereby alleviating the need to come before a hearing officer. Assistant General Manaaer/Enaineer: Paul Sciuto reported STAFF REPORTS on his attendance at the recent CASA conference. Topics of interest included: unfunded retirement benefits, legislative issues, new NPDES permits and wastewater discharge requirements, diminishing workforces, and design build regulations. Chief Financial Officer: Rhonda McFarlane reported the Alpine County Board of Supervisors approved the two year renewal of the agreement for the intergovernmental grants coordinator position. REGULAR BOARD MEETING MINUTES - MAY 4,2006 PAGE. 5 General Counsel: Gary Kvistad reported there will be changes to the code regarding affordable housing projects by July 1 of this year. District Information Officer: Dennis Cocking reported efforts are underway to obtain federal funding to increase water- line sizes for fire protection. This will be heard by the House Appropriations Committee soon. 3:40 - 3:50 P.M. 5:30 P.M. STAFF REPORTS (continued) MEETING BREAK AND ADJOURN- MENT TO CLOSED SESSION RECONVENED TO REGULAR SESSION ACTION I REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION No reportable Board action. No reportable Board action. Pursuant to Government Code Section 54956.8/Real Estate Negotiations: Negotiating Parties: Board Ad Hoc Committee, General Manager, Assistant General Manager/Engineer, Chief Financial Officer Under Negotiations: Price and Terms Property Identification: Lukins Water Company, 2031 West Way, South Lake Tahoe. CA 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. REGULAR BOARD MEETING MINUTES - MAY 4,2006 PAGE. 6 No reportable Board action. No reportable Board action. No reportable Board action. 5:30 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, Ca.; et aI., United States District Court for the Eastern District of Ca., Sacramento Division, Case No. CIV S-02-0238 MCE JFM 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 Pursuant to Government Code Section 54956.9(b)/Conference with Legal Counsel - Anticipated Litigation (Two Cases) ADJOURNMENT