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HomeMy WebLinkAbout1991-05-20 Min - Board REGULAR MEETING May 20, 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: Mary Chapman, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps; Tim Grover and Joe Howard of SEA, Inc. OTHERS PRESENT: Among those present in the audience were Marty Hanser, Angie Barraza, Martin Jimenez, Zach Ferreira and Lora Richards. WEST RIVER STREET ASSESSMENT DISTRICT STATUS REPORT, POSSIBLE ACTION Manager Holzmeister noted that research on the status of the West River Street Assessment District hasn't been completed yet, and he asked that the matter be postponed until the next meeting. . TAHOE DONNER PIPELINE REPLACEMENT PROJECT - AWARD OF SCHEDULES A, B AND C Tim Grover of SEA provided a summary and detailed listing of the bid results for the Tahoe Donner pipeline projects. The low bidders are T & S Construction on Contract A in the amount of $1, 601, 000; Ford Construction on Contract B in the amount of $2 , 238, 143 ; Sears Construction on Contract C in the amount of $468,735 (the next low bidder on Contract C is T & S Construction in the amount of $613 , 330) . Sears Construction, the low bidder on Contract C, has requested that they be allowed to withdraw their bid because of a mistake. SEA's preliminary evaluation of the bids for Contract C indicated that the bid of Sears Construction was very low in comparison to the other bidders. Mr. Grover said he did not think they would be able to construct the project for the amount that was bid. Sears contacted SEA immediately after the bid opening for Contract C and advised that they made a mistake in their bid and intended to ask if they could withdraw it. A copy of their formal request to withdraw was sent to the District on May 16 and states that they made a mistake of $67, 068 . (This amount is almost 15% of the amount that was bid. ) Director Sutton noted that a certain procedure must be followed in order to allow the apparent low bidder to withdraw a bid - they must show a recognizable error in their calculations. Mr. Grover noted that errors were made by Sears in calculating costs involved 5/20/91 Pg 1 in excavation of rock and asphalt. He said SEA evaluated Sears' request to withdraw their bid and, in their opinion, if Sears was awarded Contract C, the result would be unsatisfactory for both the District and Sears. Because of the mistake, Sears would be going into the job knowing that they would lose money even if everything went well. If there were any problems during construction, it would just make a bad situation worse, he said. Mr. Grover said, in his experience, in these circumstances the contractor will attempt to cut costs as much as possible which can lead to problems with the quality of work. The possibility exists that the contractor may be unable to continue with the work or to pay his suppliers and the District would be forced to rely on his bonding company to continue the project. This can be a lengthy process that leads to further problems because the bonding company may want to hire a contractor that is not acceptable to the District. Director Maass stated he felt Sears Construction made a legitimate mistake in calculating their bid and thought they should be permitted to withdraw with no penalty. Directors Curran and Aguera agreed. It was suggested that a copy of Sears' request to withdraw become part of the minutes for future reference. References given by Sears Construction, T & S Construction and Ford Construction have been contacted by SEA. In each case they have been found to be qualified companies that do good work in a professional manner. No complaints have been filed with the . Contractor's License Board against any of the three companies. The license of each company is current and in good standing. Director Corbett indicated he thought SEA's bid opening schedule worked well and said he was pleased with the results. Director Sutton noted that bids on Contracts A and B came in lower than the engineer estimated. Mr. Grover attributed this to the fact that he used the same unit price for each contract and to the increased competition. Director Sutton stated that the apparent low bidders in all cases are showing they will use their own forces and not use any subcontractors. Responding to Director Sutton' s question, Mr. Grover advised that the contracts call for insurance in the amount of $1, 000, 000 (at a minimum) . Director Maass moved that the Board award Contract A to T & S Construction of Sacramento in the amount of $1, 601, 000 ; seconded by Director Corbett. Counsel Phelps noted that, late in the process, the District was contacted by Lahontan (State Water Quality Control Board) ; they requested that the PUD apply for a waiver of waste discharge requirements on the Tahoe Donner project. The application was filed and the PUD has been informed that the waiver will be granted; however, Counsel suggested that the awards be made conditioned upon receipt of the waiver. 5/20/91 Pg 2 The motion was amended to include this condition. ROLL CALL: all Directors, aye. SO MOVED. Director Corbett moved, and Director Maass seconded, that Contract B be awarded to the low bidder, Ford Construction of Lodi in the amount of $2 , 338, 143 , conditioned upon receipt of the waiver of waste discharge requirements from Lahontan. ROLL CALL: all Directors, aye. SO MOVED. Director Corbett moved that Sears Construction be allowed to withdraw their bid on Contract C because of the $67 , 068 mistake. Director Sutton said she wants it to be on record that a mistake was made. Director Maass asked that the motion be amended to indicate that a copy of the letter from Sears be attached to the minutes and thereafter seconded Director Corbett' s motion. Director Corbett agreed to the amendment. Director Sutton moved that the matter be tabled until after closed session so that the Board may obtain legal advice from Counsel. Motion failed for lack of a second. ROLL CALL vote on the motion to allow Sears to withdraw their bid: Corbett, Curran, Maass and Aguera, aye; Sutton, no. SO MOVED. Director Sutton stated for the record that she is the secretary of a corporation licensed as a general engineering contractor in • California and Nevada (which is the classification for this work) . Director Maass moved that Contract C be awarded to the second low bidder, T & S Construction of Sacramento in the amount of $613 , 330 subject to receipt of the waiver of waste discharge requirements from Lahontan; seconded by Director Corbett. ROLL CALL: Corbett, Curran, Maass and Aguera, aye; Sutton, no. SO MOVED. Director Corbett moved, and Director Maass seconded, that Sears Construction' s bid bond be released. ROLL CALL: Corbett, Curran, Maass and Aguera, aye; Sutton, no. SO MOVED. PUBLIC INPUT There was no public input. ORDINANCE RESCINDING PRIOR ACTIONS AND ESTABLISHING A MISCELLANEOUS FEE SCHEDULE AND RELATED POLICY The public hearing to discuss a revised miscellaneous fee schedule was opened at 7 :33 PM. Administrative Manager Chapman explained the miscellaneous services and related costs pertaining to the work performed in the Customer Services/Billing/Meter Reading Departments. She noted she consulted with staff in the front office, collection department and with the meter readers to review all the steps involved in each service. She is recommending that the Board revise the fee schedule as follows: establishing and closing an account, $35 5/20/91 Pg 3 regular pay, $85 time and a half, $105 double pay; establishing and ® closing a water only account, $15 ; establishing and closing an account as of the last reading date, $20; automatic transfer of an account back to an owner, $20; performing a special reading, $20. She also recommended that the Board amend the customer billing policy to authorize staff to assess the late charge and begin the collection procedure only when a customer is past due more than $25. A change in the return check charge is not being proposed. There were no comments from the audience, and Director Maass moved that the public hearing be closed at 7:47 PM; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. Director Maass moved, and Director Corbett seconded, that the Board adopt ordinance No. 9106 amending the miscellaneous service fee schedule as recommended. ROLL CALL: all Directors, aye. SO ORDAINED. APPROVAL OF LEASE/PURCHASE AGREEMENT WITH SECURITY PACIFIC NATIONAL BANK FOR FINANCING TRUCKS Counsel Phelps advised that there may be a complication with the Security Pacific agreement with respect to the District's involvement in the determination as to the tax-exempt status of the interest. The District recently raised $10, 205, 000 through the issuance of Certificates of Participation. This may cause the • interest under the proposed lease to be taxable. Mr. Phelps proposed amended language and is waiting now to hear from Security Pacific. He further noted that, because of a quirk in the tax code, a non-banking institution would probably be able to make the transaction with the same favorable rates. Manager Holzmeister said that the second proposal received is from a non-banking institution; it's a leasing corporation. If Security Pacific is unable to handle the transaction, he asked permission to pursue negotiations with the other firm. Director Sutton moved that the Manager be directed to talk to as many firms as necessary if this doesn't proceed and, in the meantime, postpone action; a special meeting can be called if necessary. The motion was seconded by Director Curran. All Directors, aye, by voice vote. SO MOVED. ADOPTION OF POLICY RELATING TO PERFORMANCE REVIEWS FOR MANAGERIAL EMPLOYEES Mr. Holzmeister noted that there was discussion during the workshops with Bob Rauch relating to the importance of setting goals for department heads and performing reviews in relation to those goals. The Board indicated it wanted to establish this as a District value and a formal process, so the Manager prepared and presented a draft resolution stating the importance of performance • reviews, authorizing implementation of the process and defining which positions are covered by the performance review process. He also provided a description of how the performance review process 5/20/91 Pg 4 will be conducted. The process includes holding an annual workshop ® for the Manger and department heads at which the condition of the District is reviewed, issues for work are identified and specific goals are selected. The process also involves an annual review of performance focused on those specific goals. He said a written performance evaluation form would be prepared by the Manger and department head indicating goals met and unmet, reasons for variance, and changes in focus that are warranted. Director Sutton asked if there would be any criteria other than goals to base a performance review upon such as insobriety during working hours or leadership. There was some discussion, and it was decided that specific management qualities could be reviewed in conjunction with goals, whether or not they have been met and how successfully they have been met. Director Corbett moved, and Director Maass seconded, that the Board adopt Resolution No. 9117 recognizing the importance of performance evaluations and authorizing the General Manager to conduct annual performance reviews for department heads of the District. ROLL CALL: all Directors, aye. SO RESOLVED. DIRECTION REGARDING COMPLETION OF OFFICE SPACE AT DISTRICT HEADQUARTERS BUILDING Manager Holzmeister noted that the District is growing and it is • now time to begin making use of the space on the second floor. He would like to improve the space by installing drywall, carpeting, window treatment, a ceiling, lighting and utilities. He proposed to finish it off as one large open space which can be formed into office space by movable partitions. The improvements can be financed through the building restricted fund. Two proposals for designing, bidding and supervising the construction of the office improvements were received. one from Barada-Fuetsch in the amount of $12 ,850; the other from Cox and Kromydas in the amount of $7, 500. Mr. Holzmeister recommended accepting the proposal from Cox and Kromydas. Director Maass moved, and Director Corbett seconded, that the proposal from Dale Cox in the amount of $7 ,500 be accepted. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF CONTRACT WITH BOLAND HEALTHCARE CONSULTANTS Mr. Holzmeister noted his concern over the cost of health insurance. The current budget for the various elements of health insurance total $373 , 064 . This represents approximately $775 per month per employee and substantial increases are expected. He suggested employing the services of Boland Healthcare Consultants to do the following: prepare a report on where the medical and insurance industries are heading during the next five years and the impacts on the cost of health care and insurance premiums as well as the impacts on the quality of health care; review current health care coverage and costs; identify two to five options that promise 5/20/91 Pg 5 to be reasonable alternatives; conduct negotiations with those ® identified as reasonable alternatives to determine if they are able to work with the District, at what benefit level and at what cost; meet with representatives of the employees and IBEW to discuss the issues relating to health care insurance. Director Curran moved, and Director Corbett seconded, that the District employ the services of Boland Healthcare Consultants to perform the services described above at a cost not to exceed $10, 000. All Directors, aye, by voice vote. SO MOVED. LETTER TO SENATOR JOHN SEYMOUR REGARDING TRANSMISSION ACCESS Manager Holzmeister noted that the NCPA has been aggressively pursuing non-discriminatory transmission access and Senator Seymour was very effective at raising the issue during the Senate hearings on the PUHCA bill. He prepared a draft letter thanking the Senator for looking after these interests. Director Maass moved, and Director Corbett seconded, that the letter to Senator John Seymour be approved. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF EXPENDING FACILITIES FEES TO EXTEND LOOPED WATER LINE BETWEEN KENDALL DEVELOPMENT AND PONDEROSA RANCHOS . Three different developments (Ponderosa Ranchos, Sierra Pines and the Kendall development) have installed water systems and have provided funds to complete the final looping, Mr. Holzmeister said. He reviewed a map showing the various portions of each development and the final loop to be funded by Kendall and facilities fees. The facilities fees were paid by Ponderosa Ranchos and Sierra Pines. Under the proposed plan, Kendall would pay 50% of the cost to complete the loop and facilities fees would pay the other 50%. Kendall would be responsible for completing the loop as part of the construction of his water system; the District would pay for 50% of the actual cost of the loop based on Kendall 's submission of invoices which would be reviewed by Keith Sauers. The estimated cost to be paid by facilities fees is $13 ,500. Director Sutton questioned whether or not the loop should go to public bid. The Manager said he thinks it could be done either way, but it would simplify things if Kendall completes the work. Director Maass moved, and Director Corbett seconded, that the Board authorize the District to use facilities fees to participate in completion of a looped water line between Ponderosa Ranchos and the Kendall development. Director Sutton asked if there' s a public utility easement between . the two lots. The Manager advised that Keith Sauers is talking with the owners of the lots to make sure they don't object- right now there's an equestrian easement between the parcels. 5/20/91 Pg 6 Director Sutton said she's concerned about the legality of what the ® District is doing. It was noted that authorizing use of the fees wouldn't lock the District in as to who would actually to the work. Counsel Phelps said that since this is just a small piece of the project he doesn't think there would be a problem - he doesn't think the District would run afoul of the bidding laws by letting Kendall do the work. Director Sutton moved that the Board authorize use of facilities fees to participate in completion of a looped water line between Ponderosa Ranchos and the Kendall development and that the Manager and Counsel Phelps review the bidding requirements. OUT OF ORDER; MOTION FAILED. Vote on the previous motion: all Directors, aye. SO MOVED. DIRECTION REGARDING MINUTES OF FEBRUARY 2, APRIL 1, 8 AND 15, 1991 February 21 1991 Regarding the draft minutes of February 2, 1991, Director Sutton moved that consideration of approval be put over to the next meeting. She distributed a memorandum which states that she talked to Bob Rauch regarding her request that the outline of the Board/Manager workshop be put into some context regarding the authority and responsibility of the Board of Directors. Mr. Rauch mentioned to her that the enabling legislation in the Public Utilities Code could provide the background information. Director Sutton said she believes the pertinent sections are Section 16031, Powers to be exercised by directors; Section 16111, Officers enumerated; Section 16114, Powers and duties of general manager. She suggested that the three code sections be duplicated and added as page one after the cover page of the outline record of the Board/Manager workshop held on February 2, 1991. Director Curran seconded the motion. Director Maass stated that the minutes should reflect what transpired at the meeting, and noted he was not present at the February 2 workshop meeting. Director Sutton said that in the discussion that day she raised the question of whether an outline in context should be included in the minutes and said she thought everybody had agreed to that. She was going to research and send Bob Rauch the pertinent code sections so he could compose some magic words, but then she thought the code sections could stand on their own. Director Maass suggested the Board approve the minutes of February 2 as presented and have the minutes of this meeting reflect this discussion as well as having a copy of Director Sutton' s memo attached. Also, a note could be added to the February 2 minutes making reference to the minutes of this meeting. Director Sutton said she would send copies of the code sections to Mr. Rauch to see if he will come up with several sentences. 5/20/91 Pg 7 NO VOTE WAS TAKEN ON THE MOTION. • April 1, 1991 Director Maass moved, and Director Corbett seconded, that the minutes of April 1, 1991 be approved as presented. Director Sutton asked that the following be included in the minutes: Director Curran's comment regarding salary for the Administrative Manager; specific clarification that was obtained with respect to items removed from the consent agenda. The motion was amended to state that the minutes be approved as corrected. All Directors, aye, by voice vote. SO MOVED. April 8, 1991 Director Corbett moved, and Director Sutton seconded, that the minutes of April 8, 1991 be approved as presented. All Directors, aye, by voice vote. SO MOVED. April 15, 1991 Director Maass requested that the minutes of April 15, 1991 be put over and the tape be reviewed in two areas. On page 2, under Tahoe Donner water system improvements, he questioned why the bids were being opened on three different days; he'd like the related discussion to be included in the minutes. On page 3 , under the request of the Historical Society to move two cabins to Meadow Park Director Maass commented that the environmental review process was not under the purview of the PUD; he'd like his statement to be placed into the minutes. Director Sutton said the fourth paragraph on page 3 should include the fact that Counsel Phelps was asked and agreed to represent the PUD in this matter (Gateway cabins) . Counsel Phelps also presented written corrections to this effect. CORRESPONDENCE Marie Hublar letter of May 16, 1991 Note was made of the May 16, 1991 letter from Marie Hublar regarding her water bill. There was some discussion about the new policy regulating water bills for small residential units. The matter was referred to staff for response. Fourth of July Committee letter of April 28, 1991 The committee is requesting the use of the power poles to hang decorations on prior to and during the July fourth celebration. Mr. Holzmeister said the method of affixing the banners last year was satisfactory and they were removed in a timely manner. Director Corbett moved, and Director Maass seconded, that the 5/20/91 Pg 8 committee be authorized to hang fourth of July banners on the power poles. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL Director Maass moved, and Director Corbett seconded, that the bills presented for consideration be approved for payment. All Directors, aye, by voice vote. SO MOVED. STAFF REPORT A copy of the staff report has been attached to these minutes for reference. Water quality report All samples taken within the District's distribution system during April were free of coliform bacteria and met the State' s drinking water standards. Financial statements Attached to the report are the investment report, statement of general fund, balance sheets and income statements for the month of January 1991. Now that the audit has been completed, financial reporting will be brought up to date. AS 1166 Roger Fontes of NCPA has asked that the District support AB 1166. The bill requires investor owned utilities to follow certain standards in using computer software to model their transmission systems. This would be most beneficial in discussions with Sierra Pacific and PG&E concerning transmission. Director Corbett moved that the Board authorize the Manager to draft a letter for the Board President's signature supporting AB 1166. All Directors, aye, by voice vote. SO MOVED. Closing on Certificates of Participation The financing is complete and the funds are on deposit in LAIF. Mr. Holzmeister said that the team of Virginia Horler, Pam Babbe, David Casnocha, Sean Tierney, John Phelps, Mary Chapman, Keith Sauers and Tim Grover did a fine job. Audit workshop The audit is finished and ready for presentation to the Board. The Administrative Manager is in the process of scheduling a Finance Committee meeting with the auditors to review the draft. Director Curran, a member of the Finance Committee, advised that he will be out of town on vacation and asked that Director Sutton (the other member of the committee) proceed without him. 5/20/91 Pg 9 CLOSED SESSION The Board adjourned to closed session at 8:43 PM in accordance with Government Code Section 54957 to discuss personnel matters. RETURN TO PUBLIC SESSION The Board returned to public session at 9: 03 PM. No action was taken or direction given as a result of closed session. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 9: 04 PM. CREE DONNE PU87sIC UTILITY DISTRICT o ep R. guera, esident Prepared b Susan M. Craig, Deputy District Cler smc 5/20/91 Pg 10