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HomeMy WebLinkAbout1991-01-07 Min - Board REGULAR MEETING January 7, 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 : 04 P.M. in the TDPUD Board Room. ROLL CALL: Directors Richard Curran, James Maass, Pat Sutton and Joe Aguera were present; John Corbett was expected. EMPLOYEES PRESENT: Mary Chapman, Andy Hyde, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps; Joe Howard and Tim Grover of SEA. OTHERS PRESENT: Among those present in the audience were Scott Andre of the Sierra Sun, several Tahoe Truckee High School students, Joan and Cliff Hartwell. PRESENTATION BY RON RICHARDSON REGARDING DISTRICT PENSION PLAN Ron Richardson of Wayne Richardson & Company was unable to attend the meeting because of bad weather conditions, and the Chairman tabled discussion of the pension plan to the January 21 meeting. CONSENT AGENDA Approval of minutes in final form as corrected: November 17, November 19, December 3 and December 10, 1990 Write off of accounts receivable Director Maass moved, and Director Curran seconded, that the consent agenda be approved as follows: That the minutes of November 17 and 19, December 3 and 10, 1990 be approved as corrected. That accounts receivable in the amount of $4 , 659. 66 presented for consideration in Office Manager Chapman's memo dated January 2 be written off as recommended. All Directors, aye, by voice vote. SO MOVED. ACCEPTANCE OF TAHOE DONNER LEAK ANALYSIS, FINAL REPORT, AS PREPARED BY SEA In the packets the Directors received the final version of the Tahoe Donner Leak Analysis as prepared by SEA. It differs slightly from the draft that was submitted previously; the changes relate to an earlier concern that the District might not be able to afford replacing all of the pipelines that were given a Priority 4 rating. SEA is now recommending that Priority 1, 2 and 3 pipelines be replaced, and that portions of the Priority 4 pipelines be replaced 1/7/91 Page 1 based upon the District's experience with leaks in those sections. Mr. Hyde is recommending that the Board accept the final report from SEA so that the replacement project in Tahoe Donner may proceed. District Engineer Hyde noted that he and Mike Connell, Foreman of the leak crew, examined the Priority 4 sections and discussed the current condition of pipelines in Tahoe Donner. Based upon that review they developed a list of pipelines that should be included in the upcoming replacement project. The total footage Mr. Hyde is recommending that should be replaced (including all of Priorities 1, 2 3 and those contained on the list prepared by Mr. Hyde and Mr. Connell) is 72 , 650 feet; the total estimated cost is $7 , 040, 000. During discussion of this item, Director Corbett arrived (at approximately 7 : 09 PM) . Director Maass moved that the Board accept the final report on the Tahoe Donner Leak Analysis prepared by SEA. The motion was seconded by Director Corbett. Director Sutton noted that (in the report) the consultant is recommending a change in District standards for water service laterals. She asked if by accepting the report the recommendations would automatically be approved. The Chairman, as well as the rest of the Board and staff, assured her that acceptance of the report . would not change the District's standards in any way. Vote on the motion: all Directors, aye, by voice vote. SO MOVED. TAHOE DONNER WATER LINE REPLACEMENT - CONSIDERATION OF SCOPE OF SERVICE AND DESIGN Mr. Hyde noted that the scope of work and estimated budget prepared by SEA for the design of the Tahoe Donner pipeline replacement project contains three estimates of cost. The first is for design of a project that would replace the 60, 000 feet of pipe identified in their leak report as Priorities 1, 2 and 3 . The second is for the design of 72 , 650 feet of pipe, which includes the Priority 1, 2 and 3 pipelines plus the additional 12 , 650 feet of line Mr. Hyde is recommending should be replaced as part of the project. The last estimate is for the design of all 107 , 000 feet of pipeline identified in the report. The cost of these services ranges from $211, 000 to $308, 500. If the District is going to replace pipelines this coming construction season, Mr. Hyde said, it is imperative that SEA be authorized to proceed with design at once. He recommended that SEA be authorized to perform the design services described in the scope of work for a project containing 72 , 650 feet of water main for a cost not to exceed $236, 000. Manager Holzmeister advised that Virginia Horler will be the next person involved with the project; she will prepare the cash flow and financing plan once the replacement program has been 1/7/91 Page 2 identified. He said funds would most likely be borrowed; it would be a long term debt over 30 to 35 years with a probable annual principal and interest payment in the neighborhood of $625, 000 . Mr. Holzmeister estimated that between $150, 000 and $170, 000 will be saved in pumping costs once the leaks are repaired. He also noted that he' s been in contact with CMUA about raising the standby charges. Some of the repayment could be picked up by these increased standby charges, and some by rates. Director Sutton said she is concerned about the District authorizing design work before there is a better idea of how the project will be financed. Also, she was apprehensive about the short time frame between the proposed date for advertising for bids, the bid opening and the start of the project. Director Corbett pointed out that any delay in starting on the design phase could possibly delay the start of the construction until next year. Joe Howard of SEA mentioned that there are really only between 112 and 115 working days in the District's construction season; he noted that the prospective bidders would be pre-advised of the project before it actually goes out to bid and is advertised. One determination to be made is into how many small projects the total project should be divided. He thought three or four individual contracts would be most effective. Concerning the cost of SEA' s design services, Mr. Holzmeister said the District has a working cash balance in the neighborhood of $900, 000. Any funds expended could be reimbursed after financing is obtained. Director Curran moved that the Board authorize SEA to perform the design services on the Tahoe Donner water line replacement described in their scope of work for a project containing 72 , 650 feet of water main at a cost not to exceed $236, 000 ; seconded by Director Maass. (This figure includes $12, 000 for predesign photography which was authorized by the Board on December 17 , 1990. ) Director Maass agreed with the direction in which the District is proceeding. He said he thinks the extra time the report took was worth while, and that the District owes it to the Tahoe Donner customers to replace the pipe. Director Sutton noted she will vote "no" on the motion because she doesn't feel comfortable approving a $211, 000+ expenditure without having firm financing. She said she and Director Corbett, as members of the Water Committee, were instrumental in the decision to have SEA prepare the analysis. She said she has supported and • helped guide the project, but has reservations since Virginia Horler has not yet made financing recommendations. ROLL CALL vote on the motion: Corbett, Curran, Maass and Aguera, 1/7/91 Page 3 aye; Sutton, no. SO MOVED. CONSIDERATION OF DRAFT LETTER OPPOSING MARKET BASED PRICING OF FEDERAL POWER Manager Holzmeister advised that every so often the federal government proposes to eliminate the preference clause in federal power marketing and price federal power at so-called market rates. CMUA, APPA, NCPA, NWPPA and NRECA are asking the public power agencies write to the President, Secretary of Energy and Congressional delegates opposing the plans being proposed by the Office of Management and Budget. The Board reviewed the draft letter proposed by Mr. Holzmeister and, thereafter, Director Maass moved that the letter be finalized and mailed. Director Corbett seconded the motion and commented that what Mr. Holzmeister said in the letter is good, but he didn't mention that this would upset the economy in the northwest. He did not recommend amending the letter, however. Vote on the motion: all Directors, aye, by voice vote. SO MOVED. PUBLIC INPUT There was no public input. DISCUSSION OF SPECIAL WATER RATE FOR SMALL RESIDENTIAL DWELLING UNITS Mr. Holzmeister noted that several Directors recently discussed with him a question posed by a customer, Cliff Hartwell, who owns some small rental dwelling units on West River Street. Mr. Hartwell, present in the audience, said the units are set up as studios with no washers, dishwashers or landscaping. He estimated the usage at 40 gallons per day per dwelling. He said he feels that a special water rate, lower than the normal water rate, is justified. Also, he commented that there is no incentive to save water without meters. Mr. Holzmeister said that the argument Mr. Hartwell is making is one that suggests the use of water meters. He noted that old dwelling units may be more likely to have leaking plumbing and therefore use more water rather than less. He offered the following observations: a) If a policy was adopted allowing for a reduced rate, it could be based on square footage of the dwelling with no laundry, dishwasher or landscaping, and with a verification that the pipes do not leak. b) The decision could be based on a case-by-case application process that is reviewed annually. c) Perhaps meters should be installed and a metered rate developed for small residential units. d) Sacramento and Turlock have water rates for residential units based on the number of rooms in the residence. e) The city of Lodi has a water rate based on the number of bedrooms in the residence. f) The cities of Woodland and Roseville have water rates based on the square footage of the residence. 1/7/91 Page 4 Director Maass said it is the District's ultimate plan to meter. Director Sutton suggested that the District allow any unit, at the option of the owner, to be metered. Director Curran stated he is in favor of all residences being metered. The Chairman directed staff to investigate and make a recommendation to the Board. CONSIDERATION OF DRAFT MINUTES OF DECEMBER 17, 1990 Director Maass moved, and Director Curran seconded, that the minutes of December 17 , 1990 be approved. Director Corbett suggested a correction, and the motion was amended accordingly. All Directors, aye, by voice vote with the exception of Director Sutton who abstained since she was not present at the December 17 meeting. SO MOVED. CORRESPONDENCE Letter from Todd Bertz Todd Bertz complains in his letter about having to pay $40 for a transfer of service back into his name after the person he sub- leased his house to moved out. Office Manager Chapman stated that the District' s current policy allows staff to reduce the standard connection fee of $40 to $15 for automatic transfers back into an owner's name when their renter moves out. Mr. Bertz ' s situation is similar to that of an owner who requests an automatic transfer, except there was no authorization on file to automatically transfer the service back when the person he sublet the house to moved out. Director Sutton suggested adding some language to the District' s current policy to cover situations such as these. Mrs. Chapman noted that the miscellaneous fee schedule will be brought to the Board for consideration at the next meeting, and said she would make recommendations about rewording the policy at that time. Mrs. Chapman recommended that the District reduce Mr. Bertz ' s transfer fee to $15 and require him to provide a letter stating that he subleased the house to another party and it was his intention to have the service automatically transferred back into his name upon his return. Further, the letter should state that if he subleases the house in the future, he will provide the District with a letter authorizing that service be transferred back into his name automatically upon the sublessee's request for disconnect. Director Maass moved, and Director Corbett seconded, that staff be directed to handle the problem as suggested by Mrs. Chapman. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL 1/7/91 Page 5 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. Financial reports Mr. Holzmeister noted that copies of the investment report, statement of general fund, balance sheets and income statements through November of 1990 were included in the packet. The Directors had no questions. 1990 year end report on leaks in the water system As requested by Director Sutton, Mr. Hyde prepared a year-end report on the water system leaks. A total of 125 leaks were repaired by the water crew in 1990 at a cost of $149 , 250 ; 120 of these leaks were located in Tahoe Donner. The current list has 107 leaks remaining to be repaired. Credit cards Mr. Holzmeister surveyed the credit card market and concluded that no one is offering a business credit card account free of the annual charges. The Maryland Bank charges an annual fee for the business account of $20 plus a per-card fee of $25 ($145 per year) . The annual fee through Truckee River Bank is $250. Mr. Holzmeister noted he will be submitting an application to the Maryland Bank. There was some discussion regarding interest rates. Director Maass suggested asking that the billing cycle end about the tenth of the month in order to avoid paying interest. #'Fit to Live' program Manager Holzmeister advised that the Safety Committee developed a program in conjunction with Tahoe Forest Hospital to promote healthful living among District employees. The Hospital will conduct health screening of employees who wish to participate and then counsel them on such matters as diet, exercise, blood pressure, cholesterol, stress, smoking, substance abuse; a specific program that addresses the problem areas discovered in the screening will be developed for each employee. In order to make the program effective, the employee's spouse is encouraged to participate. The program would be paid for by the employee. The Safety Committee is asking that the District pay the cost of . the screening then make payroll deductions from the employees until the full fee is collected. Director Sutton said she feels the program should be optional and 1/7/91 Page 6 that the District should bear the cost. Director Maass said it would be worth pursuing whether or not health screening could make a difference in insurance premiums. Director Maass moved, and Director Corbett seconded, that the District pay the up-front cost of the Fit to Live Program and then make payroll deductions until the fee is collected from the employee. All Directors, aye, by voice vote. So MOVED. Effects of recent cold weather The cold weather that began before Christmas created numerous problems for customers in the form of frozen and broken pipes. Paul Rose was on call from Friday night, December 21, until Thursday, December 27 . During that time he took over 100 calls. On Saturday, Sunday and Monday, two engineering clerks came in to the office to take calls. Of all the calls received, none were related to failures in the District' s system with the exception of a few which came from customers served by the elevated tank in Martis Woods. CLOSED SESSION The Board adjourned to closed session at 8 : 34 PM to discuss pending litigation and personnel matters in accordance with Government Code Sections 54956. 9 (b) (1) and (c) and 54957. RETURN TO PUBLIC SESSION The meeting was returned to public session at approximately 9 : 36 PM. There was no direction given or action taken as a result of closed session. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 9: 37 PM. TR=KEE DONNER PLJ*IC UTILITY DISTRICT Js ph` R. Aguera, resident r � Prepared by Susan M. Cr ig, Deputy District C rk smc 1/7/91 Page 7