Approval of Agenda –
At the request of Trustee Schmitz, the item proposing amendments and an extension of the General Manager’s employment contract was moved from the consent calendar to General Business for further discussion. The GM requested to remove the consent calendar item to award a contract to F.W. Carson Co. for work at the Wetlands Effluent Disposal Facility and a General Business item containing amendments to the Mountain Golf Course Path replacement contract and the contract for design and bid assistance for Phase 2 of the Mountain Golf Course path replacement project.
General Manager Update
Mountain Golf Course Pathway contract irregularities
General Manager Winquest reported that staff is continuing to research the Mountain Golf Course Cart Path project and acknowledged that “the process could have been cleaner” after residents discovered the contractor had used a process for replacement that was not specified in the bid documents or contract. No change order or price reduction had been negotiated.
Trustee Schmitz noted that improved contract management recommendations from consultants Moss Adams and Raftelis appear to not have been implemented.
Bid materials and other documents have been posted on the IVGID website.
Raftelis Final Report- Utilities Management Review and Asset Assessment
Trustee Schmitz questioned why a report on the Utility Fund included recommendations on the Audit Committee makeup. GM Winquest stated that staff had no part in that decision. Furthermore she felt the utility fund financial analysis remains unclear and inaccurate as pointed out by a community member during public comments. She stated it does not give an accurate picture, especially in regard to the Board’s direction to restrict funds for the Effluent Pipeline Project. Although these funds do not meet the definition of “restricted funds”, there is a need to distinguish that they are not available to be spent for other purposes. See Utility Fund Analysis below.
Review of the Long Range Calendar
The meeting scheduled for October 26th (which has been rescheduled to November 3rd) will include proposed revisions to Policy 15.1.0 (Audit Committee Charter) and a discussion on meeting agenda memorandums and materials to be included in board packets. Items for November meeting include a report from the GM’s Golf Advisory Committee, and the Dillon’s rule topic. In December the Board will consider next season’s Golf pass pricing.
Reports to the Board
Utility Fund Analysis
Finance Director, Paul Navazio, in preparation for the Utility Rate Study, presented a review of the financial results for the Utility Fund for the past 10 years culled from prior annual reports. He also shared the current policies and practices for recommended levels of “Fund Balance” (Net Position for enterprise funds) and Working Capital. He expressed the need for clarity and consistency (“…we haven’t had that”) in developing new policies/practices.
As for the Effluent Pipeline Funding, although $20M has been collected only $11.7M plus interest remains in the project budget. Funds have been expended on other pipeline related repairs and evaluations. Last year the Board took action to “restrict” the funds to ensure they are only used for the pipeline project.
The District’s independent auditors are still reviewing how best to separate the Tahoe Water Suppliers Association financials from those of the District. As of today, the Tahoe Water Suppliers Association has it funds held within the utility fund.
General Business
Fund Balance/Net Position, Working Capital and Capitalization Policy Revisions
Finance Director, Paul Navazio, presented draft revisions to these policies, indicating he had already received feedback from several board members.
Championship Course Golf Cart procurement project
Although 26 of the district-owned carts have had the original batteries replaced, the Board voted unanimously to trade in the existing 80 carts and accept Club Car as the low bidder. Leasing options will be brought back to the Board for approval and may include a 54-month option. The 54-month option wasn’t contained in the packet and the 60-month lease (after receiving $164,000 credit for trade-in of existing carts), was quoted at $386,352. After adding back the $164,000 trade-in value, this increases the total cost for 5 years to $550,352 or an annual cost of $110,070. However, staff reported the annual cost was $77,270 based on a 60-month lease reflecting the credit for the trade-in. Staff estimated, but did not include supporting documents in the packet, that the 2021 season’s maintenance costs totaled approximately $84,000 of which $34,000 was for outside labor.
Amendment to General Manager’s Contract
The Board voted unanimously to amend the contract, revising the language for the term of the GM’s contract, with an eligibility for a one year extension effective July 1 of each year with a satisfactory performance review beginning in 2022. This would provide a rolling two-year contract unless the Board takes action or his performance review is below satisfactory. The other modification to his contract was providing an option of a cell phone stipend or a District provided cell phone.