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HomeMy WebLinkAbout1991-04-15 Min - Board REGULAR MEETING April 15, 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 : 07 PM in the TDPUD Board Room. ROLL CALL: Directors Jim Maass, Pat Sutton and Joe Aguera were present; Director Richard Curran was on vacation, and Director John Corbett was expected. EMPLOYEES PRESENT: Mary Chapman, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Tim Grover of SEA; Counsel John M. Phelps. OTHERS PRESENT: Rick Stafford and Joan Mensor of the Truckee Donner Historical Society; Lora Richards, Sean O'Shea, Kelly Riggs, Andy Mitchell, Laurie Holzmeister, Mark Elmore, as well as some other unidentified students from Tahoe Truckee High. CONSENT AGENDA AWARD OF TREE TRIMMING BIDS APPROVAL OF MINUTES OF MARCH 18, 1991 Director Maass moved, and Director Sutton seconded, that the consent agenda be approved as follows: That the tree trimming bid be awarded to Utility Tree Service in the amount of $73 per hour. That the minutes of March 18 , 1991 be approved as presented. All Directors, aye, by voice vote. SO MOVED. APPROVAL OF TAHOE DONNER WATER SYSTEM IMPROVEMENTS PROJECT PLANS AND SPECIFICATIONS; AUTHORIZATION TO CALL FOR BIDS At this point, 7 :09 PM, Director Corbett arrived. Tim Grover of SEA Engineering was present and noted that they are essentially ready to go with the plans and specifications for the three pipeline replacement projects in Tahoe Donner. The documents have been reviewed and approved by District staff and legal counsel. Bid openings have been scheduled as follows: Contract A, May 15, 1991 at 2 : 00 PM; Contract B, May 16, 1991 at 2 : 00 PM; Contract C, May 14, 1991 at 2 :00 PM. Mr. Grover explained that Schedule A is for approximately 28 , 000 lineal feet in old Unit 6, the most northerly area - estimated cost is 2 . 3 million; Schedule B, 38, 000 lineal feet, covers old Units 9 and 10, the easterly area, and a few sections in Unit 8 - estimated 4/15/91 Pg 1 cost is 3 .3 million; Schedule C is the rest of the pipe that was recommended for replacement - some of Units 3 , 4 , 5 and 11 - estimated cost is $600, 000. The small project was set up, he said to allow local participation. Responding to Director Maass' question, Mr. Grover advised that he thought it would be beneficial to the District to schedule the bid openings on three separate days. Because of the competition involved, he anticipated that bids would come in lower than if all were opened at the same time. Director Sutton asked for a statement from Counsel saying that the breakdown of project areas into three separate contracts on three separate days in no way violates the spirit of the law or public responsibilities on the Board' s part. Counsel Phelps stated that, in his opinion, it is perfectly legal to break the project down into three contracts and make awards on three different days. Also, he said, it's legal to have a small contract in order to draw local bidders. Mr. Phelps noted that since the law is unclear relating to prequalification of bidders, bidders were asked to submit information about themselves. This is not mandatory, however, and they may decline to do so and still submit a bid. Mr. Grover researched and concluded that it is not in the District's best interest to pre-purchase the piping material for the project. Director Maass moved that the Board approve the Tahoe Donner water system improvements project plans and specifications and issue a call for bids with the bid opening dates to be 2 : 00 PM on May 15, 1991 for Contract A; 2 : 00 PM on May 16, 1991 for Contract B; and 2 : 00 PM on May 14, 1991 for Contract C. The motion was seconded by Director Corbett. ROLL CALL: all Directors, aye. SO MOVED. REQUEST OF HISTORICAL SOCIETY REGARDING PROPERTY; POSSIBLE DIRECTION Rick Stafford and Joan Mensor of the Historical Society were present. They noted that two Gateway cabins were donated to the Society, and last Thursday the Park District agreed to move them to Meadow Park (a portion of which is owned by the PUD and leased to the Park District) . One cabin will be deeded to the Park District and made into a rest room, the other will be used by the Historical Society. The area will be fully landscaped. The Society is requesting a waiver by the PUD of connection and facility fees. Director Sutton noted that, in the past, the District has not done this kind of thing because it could be considered a gift of public funds. Director Sutton said she thinks there needs to be an environmental review before the cabins can be placed on the property. Director Maass commented that the environmental review process would not come under the purview of the PUD since the land in question has been leased for 99 years to the Park District, but he felt certain the Recreation and Park District would follow the proper procedure. 4/15/91 Pg 2 Counsel Phelps stated that his firm is counsel for the Park District. That District hasn't asked them to help on this matter, but they do represent them on other matters. He wanted the Board to be award of this fact. Also, he indicated that his firm was quite willing to assist the PUD on this matter, so long as the PUD directed him to with awareness of his firm's existing relationship with the Park District. The Chairman directed Counsel to research the lease to see if it permits buildings on the property and to render an opinion as to whether waiving fees in this instance would be considered a gift of public funds. CONSIDERATION OF PROPOSAL FOR PROPERTY AND LIABILITY INSURANCE Administrative Manager Chapman reviewed a cost summary of the proposed property and liability insurance coverage for the 1991-92 coverage year with the Board. After some discussion, Director Maass moved that the Board approve the Frank B. Hall quotation in the amount of $183 , 601 for package, auto, boiler and machinery umbrella liability, excess liability, directors and officers liability insurance; the CIGA charge and membership fee in NRECA. Also, it was noted that the three new vehicles will be added to the policy when they arrive and the cost will increase slightly. The motion was seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. DISCUSSION AND POSSIBLE DIRECTION REGARDING COMMITTEE STRUCTURE FOR THE BOARD OF DIRECTORS Mr. Holzmeister noted that during the Rauch workshop and at the Special District Board Management Institute, it was advised that the Board establish a properly functioning committee system in order to achieve a division of labor in the Board' s work effort. He said that since committees consist of a minority of the Board, they cannot make decisions. They can gather facts, develop a committee opinion and formally report back to the Board with their recommendation and an analysis of the basis for that recommendation. The full Board would then need to take action on the item, relying on the committee to have done its job. After some discussion, Director Sutton moved that the Board set up committees in the five major areas - Board/Manager relationship, operations, finances, planning and communications - as described in the Manager' s memo of April 10, 1991. Director Corbett seconded the motion. All Directors, aye, by voice vote. So MOVED. CONSIDERATION OF LEASE PURCHASE AGREEMENT FOR ELECTRIC DEPARTMENT LINE TRUCK AND WATER DEPARTMENT 31,000 GVW TWO WHEEL DRIVE TRUCK; • POSSIBLE ACTION Director Maass asked if the amount can be paid off without pre- 4/15/91 Pg 3 payment penalties, what the amount of interest earned on the money ® for seven years at the current rate would be, and to what degree this will help cash flow. Mr. Holzmeister noted that the amount to be financed is $231, 000; the interest rate is 7 .78% . The District invests in LAIF at 8. 3%; $231, 000 invested in LAIF at 8 . 3% for seven years is $91, 530. This amount less the total interest payments leaves a net gain of $26, 554 . Mr. Holzmeister will check into pre-payment conditions. Director Sutton said it' s her impression that the District gets a special rate because this is a tax free investment on the part of the lessor; interest is considerably less than private business can get - it seems like a good move. She suggested looking into a shorter term, maybe five years. In addition, she said it' s attractive because it allows the District to only pay so much a year; the users each year are paying for the equipment. Director Maass moved that the Manager be authorized to continue to pursue the lease/purchase through Security Pacific and bring appropriate documents back to the Board for approval ; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. CORRESPONDENCE No correspondence was discussed by the Board BILLS FOR APPROVAL Director Maass moved, and Director Corbett seconded, that the bills presented for consideration be approved for payment. Director Sutton noted that her expense sheet includes reimbursement for lodging at the convention hotel which was charged to her personal charge card, not the District's. All Directors, aye, by voice vote. SO MOVED. STAFF REPORT A copy of the staff report is attached for reference. Recruitment of department heads Manager Holzmeister reported that he has begun the process of reviewing the two vacant engineering job descriptions with staff and consultants. He has invited comments from the line crew, water crew and engineering services. He is also discussing ideas with Gregg Lowry, Keith Sauers, Ferris Gilkey and Bob Rauch. He will then come up with a recommendation for the Board. Responding to Director Sutton's question, Mr. Holzmeister advised that Pete Silva is in charge of the daily work of the line crew and Ron Reynolds is putting the final touches on plans for work to go to the crews. An engineer from R. W. Beck is available to work with Mr. Reynolds on the plans. Director Sutton moved, and Director Maass seconded, that the Board 4/15/91 Pg 4 authorize the Manager to use the services of R. W. Beck and Keith Sauers in the absence of in-house engineers. All Directors, aye by voice vote. Gooseneck Ranch development Mr. Holzmeister met last week with Ron Parr of Camray Capital Group in Sacramento. Camray owns approximately 700 acres of land south of Highway 267 between Sierra Meadows and Northstar. They propose to develop approximately 500 dwelling units, an 18 hole golf course and a swimming/tennis complex at that site. Mr. Parr has come to the PUD for service of water and power. He is also interested in natural gas service to the development. Mr. Holzmeister said this suggests several interesting policy matters the Planning Committee may want to discuss. Director Sutton asked the Manager to look into the status of negotiations with Sierra Pacific regarding the PUD serving power in Placer County. She said it wouldn't be wise to unduly impact other negotiations just to service 700 lots. Mr. Holzmeister advised that this may be appropriate closed session material ; he said he would provide the Board with a confidential memo regarding the matter. ADJOURNMENT There being no further business before the Board, Director Maass moved that the meeting be adjourned; seconded by Director Corbett. All Directors, aye, by voice vote at 8: 50 PM. CKEE DONNER UBLIC UTILITY DISTRICT se R. Ague , resident Prepared by Susan M. C aig, Deputy District Cle smc 4/15/91 Pg 5