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
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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
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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.
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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
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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
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0 eph' guera _ j lye
repared by
Susan M. Craig, Deputy District Cie
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