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HomeMy WebLinkAbout1991-03-18 Min - Board REGULAR MEETING March 18, 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, Jim Maass, Pat Sutton and Joe Aguera were present. EMPLOYEES PRESENT: Tom Buckhouse, Mary Chapman, Andy Hyde, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps; Bond Counsel Sean Tierney; Financial Consultant Virginia Horler; Civil Engineer Keith Sauers; Joe Howard and Tim Grover of SEA. OTHERS PRESENT: Among those present were Catherine Gibbs of the Sierra Sun, Bob Jones, Marilyn Dedmon, Harry Smith, Herb Gaarder, Karl Kuttel, Hinton Williams, Ann and Fred Penfield, Mr. and Mrs. Don Hyatt, Scott Brandos, Jim Goulding, Jim Schuman, Peter and Chris Binckley. CONSENT AGENDA Electrical Engineer Tom Buckhouse explained his request to have the Board issue a call for bids for tree trimming in Tahoe Donner, Sierra Meadows, Martis Valley Estates, Ponderosa Fairways Estates and the north side of Donner Lake. He said the 1991 budget includes $33, 000 for this purpose; this should provide for two months time for one trimming crew. Director Corbett moved, and Director Curran seconded, that the consent agenda be approved as follows: That the minutes of February 4, 1991 be approved as presented. That a call for bids to provide the service of trimming and removal of trees along the District's power lines be issued. All Directors, aye, by voice vote. SO MOVED. MEETING OF THE TDPUD NON-PROFIT FINANCING CORPORATION It was decided to conduct the non-profit financing corporation meeting after the public hearing scheduled for 7 : 45 PM. WATER SYSTEM IMPROVEMENTS Resolution approving scope, environmental documents and notice of exemption for the Tahoe Donner pipeline replacement project District Civil Engineer Andy Hyde noted that he previously 3/18/91 1 identified a total of 72, 650 feet of pipeline for replacement in . Tahoe Donner in 1991. The estimate included an undefined contingency of 5, 700 feet. After discussing the project with the Tahoe Donner Association, Nevada County, SEA and District staff, a final listing of the pipelines to be replaced and their lengths has been defined. The length of pipeline to be replaced totals 71, 210 feet. The list is attached to the draft resolution for consideration by the Board. Also attached to the draft is a copy of the environmental assessment and associated forms and notices for the project. Mr. Hyde concluded that the project is exempt from further environmental review in accordance with both District and State environmental guidelines because the project falls into the category of replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. The Notice of Exemption for filing with the County of Nevada has also been prepared. Responding to Director Sutton' s question, Mr. Hyde confirmed that the pipeline to be replaced (shown on the list attached to the resolution and entitled Exhibit "A") lies within the original Tahoe Donner subdivision development. Director Maass moved, and Director Corbett seconded, that the Board adopt Resolution No. 9110 approving scope, environmental documents and the Notice of Exemption for the Tahoe Donner pipeline replacement project. ROLL CALL: all Directors, aye. SO RESOLVED. Determination re service line material for water system improvements Mr. Hyde stated that he, the Water Foremen and SEA believe that polyethylene (PE) pipe is an acceptable material for service laterals. They recommend it be used in the Tahoe Donner pipeline replacement project and that District standards be modified to allow PE tubing. The District's current standard service line material is galvanized iron pipe. For the benefit of Director Sutton, Mr. Hyde explained that the service lateral goes from the water main to the meter box. This project would include replacing the service laterals for every property along the line (within the project boundaries) . Mr. Hyde noted two concerns with the use of PE - pipe thawing and detection of existing lines with a line locating device. He said the recommendation that PE tubing be allowed includes two requirements: 1) that the depth of bury for service lines be increased to four feet from the current depth of three feet. This will reduce the likelihood that the service line will freeze; 2) that a locating wire and marking tape be installed with each line. The locating wire will serve as the conductor for the pipe locating signal. The marking tape is a warning to excavators that they are approaching a buried utility line. 3/18/91 2 The National Sanitation Foundation has found polyethylene tubing to be suitable material for potable water. The purchase and installation cost of PE tubing is approximately 70% that of galvanized iron pipe, Mr. Grover noted. After some discussion, Director Maass moved, and Director Corbett seconded, that the Board approve polyethylene tubing for service laterals in the Tahoe Donner pipeline replacement project and that District standards be modified to allow such PE tubing. ROLL CALL: Corbett, Curran, Maass and Aguera, aye; Sutton, no. So MOVED. Consideration of contract with SEA for construction management services SEA has provided a proposal for engineering services during the bid and construction phase of the Tahoe Donner pipeline replacement project. Mr. Hyde reviewed the document and said he believes SEA has put a great deal of thought into the manner in which they propose to administer the construction phase of the project. SEA proposes to have a staff of seven devoted to the job. It was Mr. Hyde' s opinion that this level will allow adequate oversight of the contractors to see that the plans and specifications are followed. Joe Howard of SEA is suggesting that the project be broken down into three separate bids in order to get the most interest from contractors and better construction services. Also, he' s suggesting pre-qualifying the contractors since the existing water system will have to remain operational during the construction and because of the difficulty of construction in the area. Mr. Howard said that in order to provide the level of inspection and testing required to insure that the replacement project is completed properly, construction management should be controlled from Truckee. SEA is proposing to provide a registered professional engineer to be resident engineer on a full time basis. An assistant engineer would be assigned to be responsible for monthly pay estimates, amount of construction completed, any work that needs corrective action or any warranties by suppliers. He would work with the lead inspector on a daily basis to update construction schedules and coordinate with the fire department and County on opening and closing of streets for construction. He would also control the record drawings and, with the lead inspector, would insure they are updated to reflect the construction completed. It was Mr. Howard' s opinion that one inspector could handle two pipe crews. If at any time there is a need for more, they will be assigned by SEA. As most of the work will be going on at the same time, four inspectors will be required - one inspector for each project and a lead inspector to coordinate activities and to fill in on any individual project as the need arises. Director Curran stated that, in his opinion, the District would be really negligent not to have its own inspectors. Manager 3/18/91 3 Holzmeister said that someone would be designated to work with SEA to make sure they're doing their job. The proposal from SEA has a cost ceiling of $474 , 500. This brings the total for engineering services for the whole project to $827 , 500, which is about 14% of the estimated construction cost of $6, 0o0, 000. This includes the cost of the leak analysis conducted by SEA. Counsel Phelps and Virginia Horler both felt there was no legal problem with spending this amount for engineering services on a project of this size. Director Corbett moved, and Director Maass seconded that SEA be authorized to perform services during the bid and construction phases as outlined in their proposal for an amount not to exceed $474 , 500. ROLL CALL: all Directors, aye. SO MOVED. PUBLIC INPUT There was no public input at this time. PUBLIC HEARING - CONSIDERATION OF AN ORDINANCE FIXING WATER STANDBY CHARGES ON LANDS WITHIN THE DISTRICT BOUNDARIES TO WHICH WATER IS MADE AVAILABLE FOR ANY PURPOSE WHETHER USED OR NOT, AND PROVIDING MEANS FOR COLLECTION THEREOF (NEVADA COUNTY ONLY) President Aguera opened the public hearing at 8:20 PM. He noted that this hearing concerns just Nevada County. Manager Holzmeister advised that the District recently prepared a water master plan. After reviewing the plan, the Tahoe Donner leak situation, and current revenue sources, he is proposing to the Board adoption of a $75 per year increase in the water standby charges. He noted that sound utility planning calls for anticipating growth and building the system accordingly; this larger (than currently necessary) system must then be operated and maintained. A fair revenue system that is broad-based must be established. On February 1, 1991, water rates were increased by $78 per year; users pay an average of $270 to $400 pe Owners of vacant lots, currently paying $5 per year i standby charges, would pay $80 per year to help operate and maintain the water system the District has made available to them. If the District received 628 letters of protest (representing 15% of the parcels subject to the charges) , the issue would have to be submitted to an election (If 40% protest, no further proceedings can be taken for a year. ) Mr. Holzmeister reported that 375 protests were received prior to the Board meeting. Director Maass said that when the Board considered the water rate increase there was a public hearing. One person at the hearing suggested having a broader revenue base, user fees as well as higher standby fees. An engineering report was prepared by Keith • Sauers showing the benefit of water availability to unimproved property owners and determining $80 as an equitable fee. 3/18/91 4 Responding to Hinton Williams' question, Mr. Sauers reported that, as of February 1, 1991, there were 9,738 parcels within the District; 5,537 have active water services and 4, 201 are vacant parcels with water available. Ann Penfield asked permission to submit a protest - she said she didn't receive a letter, but saw the notice in the Sierra Sun. Don Hyatt, a neighbor of Mrs. Penfield, said he didn't receive a notice either. Mrs. Hyatt said she, as well as several of her neighbors, bought parcels to preserve their privacy; they don't plan to build. Scott Brandos said he owns three vacant lots and only received one notice; Mr. Williams stated he spoke with someone who owns a lot in Tahoe Donner who didn't receive a notice; Jim Goulding owns two vacant parcels and only received one notice. Jim Schuman reported that quite a few of the property owners in Tahoe Donner allegedly did not receive notices. He suggested the period for submission of protests be extended. Mrs. Penfield stated she thinks the rate is excessive; Mr. Brandos said it seems disproportionate to the users fee. Director Maass noted that housing developments in other areas are usually completed all at once - water, power, sewer and houses; • there are no vacant lots. Within this District, about 40% of the parcels aren't built upon, although water and power may be available; no revenue is coming in from those lots. The engineering document prepared by Sauers Engineering analyzed the cost of just the water system itself and determined that $82 per lot, whether there's a house on it or not, is equitable. Having water available is a valuable asset. Lots with water readily available are worth more than those with no water system available. Bob Jones, local realtor (and member of the Financing Corporation Board) reinforced Director Maass' statement. Director Maass went on to say that this hearing deals with only one specific charge. The District's been looking at the entire water system - a good portion of the improvements are financed through the rates and the PUD is due to receive a $5, 000, 000 loan from the state to improve certain portions of the system. Virginia Horler noted that water system revenues will be used to accomplish all the master plan, Proposition 55 and Tahoe Donner projects as well as system wide improvements. Bob Jones said he feels an increased standby charge is an alternative to another user rate increase. It was noted that adjacent vacant parcels purchased by home owners to preserve their privacy can go through a County reversion process to join their lots and thereby be exempt from a standby charge. Director Sutton expressed concern about whether or not it would be legal to extend the protest period. She said she thinks the Board 3/18/91 5 needs to know how many lots in Nevada County have water available ® and are subject to the standby charge. She said she hasn't seen the protest letters or a list of those who protested. Mr. Sauers, consulting engineer, noted that there are 187 Placer County and 4 , 014 Nevada County unimproved lots with water available that are subject to the standby charge. Mr. Holzmeister said 375 protest letters were received. He explained that the hearing for Placer County will be held April 8, 1991 rather than tonight since their notices were not sent out (due to an error in the mailing list provided by the Placer County Assessor' s office) . Virginia Horler explained that 17% of the water system improvement financing would come from standby charges; disapproval of the increase would jeopardize the entire improvement program. Counsel Phelps advised that the law requires the District to publish a notice in the paper twice and mail personal notices to owners of unimproved parcels based upon the County Assessor's information. If the notices were mailed and the District used the labels provided by the Assessor's Office, its perfectly acceptable to assume the PUD is in compliance with the law. Scott Brandos said he doesn't object to the charge, he objects to the amount of the increase. He suggested the District find a different balance. Director Maass asked consulting engineer Keith Sauers to provide a copy of his engineering study to Mr. Brandos. Seven protests from people in the audience were received bringing the total to 382 . A list of protestors shall become an attachment to these minutes. Director Corbett moved that the public hearing be closed at 9 : 35 PM; seconded by Director Maass. ROLL CALL: all Directors, aye, with the exception of Director Sutton who voted "no. " SO MOVED. Several wording changes to the draft were suggested and, thereafter, Director Corbett moved that the Board adopt Ordinance No. 9103 fixing water standby charges on certain lands within the District boundaries to which water is made available for any purpose and providing means for collection thereof (in Nevada County only) . The motion was seconded by Director Maass. There was some discussion, and it was noted that the ordinance, if passed, will be subject to referendum by the voters. ROLL CALL: all Directors, aye. SO ORDAINED. JOINT MEETING OF THE TDPUD NON-PROFIT FINANCING CORPORATION AND THE TDPUD BOARD President Jones called the meeting of the Truckee Donner Public Utility District Financing Corporation to order at 9: 50 PM in the TDPUD Board Room in joint session with the . TDPUD Board. ROLL CALL: Directors Marilyn Dedmon, Herb Gaarder, Harry 3/18/91 6 Smith and Bob Jones were present; Fran Benoit was unable to attend. OTHERS PRESENT: TDPUD Directors John Corbett, Richard Curran, Jim Maass, Pat Sutton and Joe Aguera; TDPUD employees Tom Buckhouse, Mary Chapman, Andy Hyde, Peter Holzmeister and Susan Craig; TDPUD consultants John Phelps, Sean Tierney, Virginia Horler, Keith Sauers, Joe Howard and Tim Grover. Others present were Catherine Gibbs of the Sierra Sun, Karl Kuttel, Hinton Williams, Ann and Fred Penfield, Mr. and Mrs. Don Hyatt, Scott Brandos, Jim Goulding, Jim Schuman, Peter and Chris Binckley. ELECTION OF OFFICERS Director Smith moved that the Board cast a unanimous vote for Bob Jones as President, Harry Smith as Vice President and Marilyn Dedmon as Secretary/Treasurer; seconded by Director Gaarder. All Directors, aye, by voice vote. SO MOVED. STATUS REPORT ON DEBT SCHEDULE FOR BUILDING; ACCEPTANCE OF REPORT Peter Holzmeister provided a status report on the debt . schedule and lease payments for the PUD building (copy attached) . Director Dedmon moved, and Director Smith seconded, that the report be accepted as submitted. All Directors, aye, by voice vote. SO MOVED. REPORT OF SPECIAL COUNSEL ON THE CERTIFICATE OF PARTICIPATION FINANCING Bond Counsel Sean Tierney of Brown & Wood, explained the financing program being considered by the District and the purposes of the financing resolution. He stated that the financing program is being undertaken by the District in order to finance a variety of improvements to the water system. The financing program will consist of the PUD's purchase of the project from the corporation pursuant to an installment purchase agreement between the District and the corporation. Certificates of participation will be executed and delivered to finance the project under a trust agreement. These certificates of participation will be secured by installment payments to be made by the District to the corporation pursuant to the installment purchase agreement. The corporation will assign to a trustee all of the corporation's right, title and interest in and to installment payments by the District under the installment purchase agreement. Payments are divided into a principal component and an • interest component. The interest component will be exempt from taxation to the owners of the certificates. A bank will act as trustee to hold the certificate 3/18/91 7 proceeds and distribute the proceeds to the District and • will also collect the installment payments and distribute the moneys to pay the principal and interest with respect to the certificates. There was some discussion about the various documents and PUD Director Pat Sutton noted that under the pledge of revenues the District would be obligated to maintain a separate fund for water revenues; she asked how this can be done since the District is required to have a general fund. Mr. Tierney explained that there would be a separate fund within the general fund pledged to pay the certificates. He said, technically, it' s a net revenue pledge; the lien applies only to net revenues (after revenues to meet the expenses of the District have been deducted) . It was also noted that facilities, connection and meter fees can only be used for the specific purpose for which they were collected (in accordance with AB 1600) . Also, Mr. Tierney assured Director Sutton that the statement of direct and overlapping debt would be brought up to date prior to the closing PUBLIC HEARING - CONSIDERATION OF AN ORDINANCE OF THE BOARD OF DIRECTORS AUTHORIZING THE EXECUTION AND DELIVERY OF AN INSTALLMENT PURCHASE AGREEMENT, A TRUST AGREEMENT, AN ASSIGNMENT AGREEMENT, A CONTRACT OF PURCHASE AND AN OFFICIAL STATEMENT, AND CERTAIN OTHER • ACTIONS IN CONNECTION THEREWITH The public hearing was opened at 10: 35 PM. There was no public input and, therefore, Director Maass moved that the hearing be closed; seconded by Director Corbett. All Directors, aye, by voice vote. So MOVED at 10:36 PM. ADOPTION OF FINANCING RESOLUTION Following Counsel Phelps' advice, Director Harry Smith disclosed that he owns 500 shares of First Interstate Bank stock (the bank involved in the financing) . Counsel Phelps said he believes voting by Mr. Smith on this issue is proper since he disclosed the possible conflict and his share in the company is small; the laws governing the financing corporation are different than those governing the PUD Board, Counsel noted. Director Sutton protested; she said she disagrees with Counsel ' s interpretation. Director Dedmon moved that the financing corporation adopt Resolution No. 9101 approving an installment purchase agreement and certain other documents, authorizing the preparation, sale and delivery of not to exceed $11, 000, 000 certificates of participation, and authorizing certain actions in connection therewith; seconded by Director Gaarder. ROLL CALL: all Directors, • aye. SO RESOLVED. ORDINANCE AUTHORIZING THE EXECUTION AND DELIVERY OF AN INSTALLMENT 3/18/91 8 PURCHASE AGREEMENT, A TRUST AGREEMENT, AN ASSIGNMENT AGREEMENT, A • CONTRACT OF PURCHASE AND AN OFFICIAL STATEMENT, AND CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH After determining that Counsel Phelps and Special Bond Counsel Tierney had read the documents and found them to be in order, Director Maass moved, and Director Corbett seconded, that the PUD Board adopt Ordinance No. 9104 authorizing the execution and delivery of an installment purchase agreement, a trust agreement, an assignment agreement, a contract of purchase and an official statement, and certain other actions in connection therewith. ROLL CALL: all Directors, aye. SO ORDAINED. OTHER BUSINESS OF FINANCING CORPORATION There was no other business before the financing corporation Board. ADJOURNMENT OF THE TDPUD FINANCING CORPORATION BOARD Director Gaarder moved, and Director Dedmon seconded, that the TDPUD financing corporation meeting be adjourned at 10:40 PM. All Directors, aye; SO MOVED. RESOLUTION TO INITIATE PROCEEDINGS TO FIX WATER STANDBY CHARGES (PLACER COUNTY) AND DIRECTION TO SCHEDULE PUBLIC HEARING . It was noted that incorrect mailing labels were received from the Assessor' s Office and parcels in Placer County subject to standby charges have not been notified of the possible increase. Director Maass moved, and Director Corbett seconded, that the Board adopt Resolution No. 9111 initiating proceedings to fix water standby charges in Placer County. ROLL CALL: all Directors, aye. SO RESOLVED. The hearing is to be scheduled for 7 :00 PM on Monday, April 8 , 1991 and published in accordance with the law. DIRECTION REGARDING DRAFT MINUTES OF FEBRUARY 19, 25 AND MARCH 4, 1991 February 19, 1991 Regarding the minutes of the February 19 meeting, Director Corbett mentioned that during the discussion of overtime hours he made the statement that he wanted to thank the employees for spending time to solve a problem and that they took time away from their private family time to do it. He requested his statement be included in the minutes. Director Aguera stated that Director Sutton asked that a transcript . of the statement Debi Black made at the meeting regarding overtime hours be included in the minutes. Director Aguera asked that Director Sutton' s statement regarding this matter also be attached. 3/18/91 9 Director Curran asked that the word "several" on page 5 be changed . to "two. " He also asked that the Secretary add his statement that he had no problem with any overtime in the District; that he looked at all the overtime and even after Manager Holzmeister showed him the overtime rate he was perfectly satisfied that there was no abuse of overtime. His concern was with an employee working 20 hours straight then driving down to Sacramento on a stress related Workers Compensation matter. Director Maass moved that the minutes of February 19, 1991 be approved as corrected; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. February 25, 1991 Director Maass moved, and Director Corbett seconded, that the minutes of February 25, 1991 be approved as written. ROLL CALL: all Directors, aye, with the exception of Director Sutton who abstained since she was absent from that meeting. SO MOVED. March 4, 1991 Director Maass moved, and Director Corbett seconded, that the minutes of March 4 , 1991 be approved as presented. ROLL CALL: all Directors, aye, with the exception of Director Sutton who abstained since she was not present at that meeting. SO MOVED. 0 CORRESPONDENCE County of Nevada Mr. Holzmeister noted that the County has notified the District that the Board of Supervisors will meet on March 19 to act on the PUD' s resolution requesting consolidation of the District election with the November even-numbered year elections. BILLS FOR APPROVAL Director Corbett moved, and Director Maass seconded, that the bills presented for consideration be paid. All Directors, aye, by voice vote. SO MOVED. STAFF REPORT Monthly bacteriological report for February Mr. Holzmeister reported that all samples taken during February were free of coliform bacteria and met the State' s drinking water standards. A copy of the report is attached. ADJOURNMENT • There being no further business before the Board, Director Maass moved that the meeting be adjourned at 10: 50 PM. The motion was 3/18/91 10 seconded by Director Corbett and passed unanimously. . TRUCKEE DONNER PUBLIC UTILITY DISTRICT r o ep R. Ague , , , residant ; Prepared by Susan M. Craig, Deputy District Cler smc 3/18/91 11