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HomeMy WebLinkAbout1991-10-21 Min - Board REGULAR MEETING October 21, 1991 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Aguera at 7 :05 PM in the TDPUD Board Room. ROLL CALL: Directors John Corbett, Richard Curran, James Maass, Patricia Sutton and Joe Aguera were present. EMPLOYEES PRESENT: Mary Chapman, Bruce Grow, Peter Holzmeister, Ron Reynolds, Pete Silva and Susan Craig. CONSULTANTS PRESENT: Joe Howard and Bob Churn of SEA; John Phelps and Steve Gross of Porter, Simon, Graham, Phelps and Cuttita. OTHERS PRESENT: Bill Quisnell, Ted Langan, Catherine Gibbs, Josh Chapman, Heather Felts, Ryan Borden, Paul McCalden, Misty Kamirez, Faye Cruz, Jim Smerdon, Michelle Brasher, Jacqui Parkhurst, Carrie Holzmeister, Jessica Smith, Milinda Monroe and Stian Hedrikson. TAHOE DONNER PIPELINE REPLACEMENT PROJECT - STATUS REPORT - CONSIDERATION OF APPROVING A REQUEST FROM SEA FOR AN INCREASE IN THEIR ENGINEERING SERVICES BUDGET - CONSIDERATION OF APPROVING PROGRESS PAYMENTS AND INVOICES Bob Churn, Resident Engineer on the Tahoe Donner Pipeline Replacement Project, was present to discuss the status of the construction with the Board. Work is proceeding quickly; many of the worst leaks have now dried up. The remainder of new services and pipeline switching should occur in the next two weeks. Paving is continuing; clean-up will take some time to complete. An increase In SEA' s engineering services budget was requested and explained by Joe Howard. Thereafter, Director Maass moved, and Director Corbett seconded, that the Board approve increasing the SEA engineering services budget by $65, 000. ROLL CALL: all Directors, aye. So MOVED. Progress Pay Estimates presented by T & S Construction were reviewed and signed by Bob Churn. Director Corbett moved that the Board approve payment to T & S in the amount of $607 ,594 .87 representing Progress Payments No. 4 on Contracts A and C; seconded by Director Maass. All Directors, aye, by voice vote. SO MOVED. Director Maass moved, and Director Corbett seconded, that the Board approve payment to SEA, Inc. in the amount of $48, 687 .96, All Directors, aye, by voice vote. SO MOVED. Director Maass moved that the Board authorize transfer of $656, 282 .83 from the acquisition fund to the general fund to cover 10/21/91 Pg 1 the Tahoe Donner water improvement expenses; seconded by Director Curran. All Directors, aye, by voice vote. SO MOVED. PUBLIC INPUT Tahoe Donner Pipeline Replacement Project Ted Langan of Falcon Point Drive in Tahoe Donner noted that construction appears to be complete on his street, but the leaks haven't stopped. Mr. Churn explained that service hasn't been switched to the new line yet. Natural gas Responding to a recent article in the local newspaper, the Sierra Sun, Mr. Langan stated his opinion on natural gas: he is in favor of bringing natural gas to the Truckee area, but not in favor of the PUD providing the service (he would prefer a private company such as Southwest Gas) . CONSIDERATION AND POSSIBLE APPROVAL OF A PROPOSAL FROM R. W. BECK TO PERFORM ELECTRIC SYSTEM PLANNING AND ENGINEERING The Board discussed R. W. Beck's proposal and recommendations regarding the District's request to assist in resolving outstanding electric system problems and to prepare an electric system master plan. Thereafter, Director Corbett moved that the Board authorize R. W. Beck to proceed with the master plan at a cost of $63 , 400 and to modify the output voltage of the Donner Lake Substation to be consistent with the remainder of the PUD system at a cost of $12 ,200. The motion was seconded by Director Maass. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF APPROVAL OF CONTRACT CHANGE ORDER NO. 1 FOR THE ARMSTRONG HIGH PRESSURE PROJECT Background information for the proposed change order items on the Armstrong High Pressure Project was reviewed. The change order totals $895, which is approximately 1% of the original contract price. Director Maass moved, and Director Corbett seconded, that the Board approve Contract Change Order No. 1 on the Armstrong Project in the amount of $895. The contractor on the project is Dale Burt. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF A REPORT FROM BOND COUNSEL REGARDING THE EFFECT OF ARBITRAGE RULE ON DISTRICT'S REQUISITION FUNDS The Board reviewed the report defining the arbitrage rule in order to be aware of what amounts would be owed if the District does not spend the acquisition fund monies on time. Staff recommends 10/21/91 Pg 2 preparing a schedule of water capital projects for 1991, 1992 and 1993 for Board review, along with funding amounts and funding sources, so that the District is able to utilize COP funds in a manner that avoids payments to the IRS. CONSIDERATION OF A REPORT FROM THE DISTRICT AUDITOR REGARDING TRANSFERS FROM THE ACQUISITION FUND TO THE GENERAL FUND After conferring with Rick Blumenfeld of Arthur Andersen and David Casnocha, Bond Counsel, the Manager provided a written response to the Board' s question regarding the practice of transferring money from the acquisition fund to the general fund and then paying the Tahoe Donner Pipeline Project contractors out of the general fund. It is legal, practical and easy for staff to administer. The funds transferred to the general fund are properly accounted for; the motions made by the Board are the audit trail that establishes the record. CONSIDERATION OF A REPORT FROM THE GENERAL MANAGER CONCERNING THE USE OF DISTRICT RESTRICTED FUNDS The Board reviewed and discussed the General Manager's report on the use of Tahoe Donner restricted funds and facilities fees. It is staff's recommendation to analyze water capital needs over the next few years (through the budget process) and to reasonably fit them into a number of funding sources to gain the most advantage for the District and its customers. The various funding sources available include the COPs, Proposition 55, Tahoe Donner water system fund, pre-AB 1600 facilities fees, post-AB 1600 facilities fees and rates. CONSIDERATION OF A REPORT FROM THE GENERAL MANAGER REGARDING THE USE OF THE RESTRICTED FUNDS KNOWN AS THE BUILDING FUND The report on the building fund prepared by the Manager was discussed by the Board. Three options were mentioned in Mr. Holzmeister's report, and the Board directed that an accountant's analysis of the options be prepared for consideration at the next regular meeting. CONSIDERATION AND POSSIBLE APPROVAL OF COMPENSATION ADJUSTMENT FOR EXECUTIVE SECRETARY Director Corbett moved, and Director Curran seconded, that the Board approve a 4% salary increase for the Executive Secretary retroactive to January 1, 1991, bringing her salary to $35, 671. 17 for the year. All Directors, aye, by voice vote. SO MOVED. CORRESPONDENCE There was no correspondence discussed by the Board. 10/21/91 Pg 3 BILLS FOR APPROVAL Director Maass moved, and Director Corbett seconded, that the bills presented for consideration in the amount of $23 ,980.38 be approved for payment. All Directors, aye, by voice vote. SO MOVED. STAFF REPORT For reference, a complete copy of the staff report has been attached to these minutes. Central Valley Project power allocation The Western Area Power Agency is presently going through the process of remarketing CVP power. The PUD is in danger of losing its 1.9 megawatts since negotiations for wheeling the power to the District have never been completed. WAPA has been criticized for reserving power when others could be making use of it. The Manager has been working with NCPA and R. W. Beck to resolve the problem. With the recent agreement between NCPA and PG&E, some of the transmission barriers may be alleviated. Water quality report Water quality reports for the month of September 1991 were provided for review. Briefly discussed was the raging fire that has wiped out many areas of Oakland and Berkeley. The Chairman directed that the appropriate committee meet to discuss emergency situations and resultant outages, then prepare recommendations for consideration by the Board. Water telemetry system Seven consultants submitted proposals to design a SCADA system that can be put out to bid. After interviewing, one will be selected and fees will be negotiated. Natural gas As of October 16, six notes and three phone calls were received in favor of conducting a study regarding the feasibility of bringing natural gas to Truckee. Mr. Langan, earlier during the meeting, expressed an interest in having Southwest Gas pursue the matter, not the PUD. Several months ago during a Board meeting, Charlie White of Donner Lake stated he opposes the pursuit of this matter. Memorandum of Understanding 10/21/91 Pg 4 The union membership ratified the MOU (which was approved by the Board at the October 7, 1991 meeting) . ADJOURNMENT There being no further business before the Board, Director Maass moved that the meeting be adjourned at 9 : 13 PM; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. TREE DONNER PUC UTILITY DISTRICT 4 f , 0 eph' guera _ j lye repared by Susan M. Craig, Deputy District Cie smc • 10/21/91 Pg 5