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HomeMy WebLinkAbout1991-01-21 Min - Board REGULAR MEETING January 21, 1991 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Aguera in the TDPUD Board Room at 7 : 02 PM. ROLL CALL: Directors John Corbett, Richard Curran, Jim Maass, Pat Sutton and Joe Aguera were present. EMPLOYEES PRESENT: Andy Hyde, Peter Holzmeister, Tom Edgman, Mike Connell and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps. OTHERS PRESENT: Karen Climo. PRESENTATION BY RON RICHARDSON REGARDING DISTRICT PENSION PLAN Ron Richardson of the Wayne Richardson Company explained issues relating to the District' s pension plan. Prior to the end of the year, it will be necessary to give him some direction on investing the cash assets of the plan and the method of plan valuation. Currently the pension plan cash is a guaranteed investment contract with the Hartford Life Insurance Company. The District makes the decision as to how the funds are invested, and Mr. Richardson said he would provide a list of investment options in the low-risk category. Also, he noted that the more interest earned, the less the District pays. He suggested the PUD modify its plan to incorporate the projected unit credit method of plan valuation. There was some discussion, and the Chairman directed that the matter be placed on a future agenda for action. PUBLIC INPUT There was no public input. CONSENT AGENDA Approval of minutes in final form as corrected - December 17 , 1990 At the request of Director Sutton, this item was removed from the consent agenda. Resolution authorizing call for bids on 31,000 GVW two wheel drive truck for Water Department Director Maass moved, and Director Corbett seconded, that the consent agenda be approved as follows: . That the Board adopt Resolution No. 9101 authorizing a call for bids on a 31, 000 GVW two wheel drive truck for the Water Department. ROLL CALL: all Directors, aye. 1/21/91 1 SO RESOLVED. • Approval of minutes in final form as corrected - December 17 , 1990 Director Sutton noted that Counsel Phelps suggested an amendment to these minutes, so she felt they should be considered as a separate item. Director Maass moved, and Director Sutton seconded, that the minutes of December 17, 1990 be approved as corrected by Counsel . All Directors, aye, by voice vote. SO MOVED. STAFF RECOMMENDATION RE SPECIAL WATER RATE FOR SMALL RESIDENTIAL DWELLING UNITS Manager Holzmeister advised that staff discussed the issue of establishing a special water rate for small residential dwelling units and was not unanimous in their recommendation. He presented two options: submitting the concept to John Springer at NCPA for inclusion into the rate design, or taking an interim step by postponing implementation of the new rate increase on any dwelling unit meeting certain criteria. Staff also suggested that residential water metering be discussed. (Under AB 1600, funds collected after January 1, 1989 need to be spent within five years or must be returned or a resolution adopted setting forth why they couldn't be spent and need to be retained. ) . There was some discussion, and Director Maass said he would like to see small residential dwelling units be charged a certain percentage of the flat rate plus the applicable zone charge. Director Curran was in favor of metering, not just the small units, but all customers. Director Maass moved that a public hearing be scheduled for 7 : 30 PM on February 1, 1991 to discuss the possibility of establishing a reduced rate for small dwelling units meeting certain criteria; seconded by Director Corbett. All Directors, aye, by voice vote. So MOVED. CONSIDERATION OF CONTRACT WITH GENERAL MANAGER Director Maass moved that a hearing be set for 8: 00 PM on February 1, 1991 to consider the General Manager's contract and salary; seconded by Director Corbett. Director Curran noted he' s in favor of waiting until the union contract is settled before making an adjustment to the Manager's salary. Also, he said, he thinks the timing is bad because of the water rate increase effective February 1. Director Sutton abstained, Director Curran voted no; all other Directors, aye, by voice vote. SO MOVED. AUTHORIZATION TO PAY CERTIFICATE OF PARTICIPATION . The principal and interest payment on the certificates of participation for the District complex is due by February 1, 1991. Director Maass moved, and Director Curran seconded, that the Board 1/21/91 2 authorize transferring by wire the amount of $154, 020. 45 to the . Bank of America on January 31, 1991. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF BOND COUNSEL PROPOSAL FROM BROWN & WOOD Mr. Holzmeister advised that, in order to move forward in a timely manner with the arrangements for financing for the Tahoe Donner leak project, the District needs to appoint a bond counsel firm to review the documents that set up the financing so they can render an opinion on the legality of the financing and its tax exempt status. This opinion is necessary to get the financing rated and sold. Brown and Wood has provided a proposal for a fee of $45, 000 plus expenses, less than anticipated by Mr. Holzmeister in his initial plans. The firm has been working with the PUD since 1985 and has given the District excellent service, he said. Director Maass noted that Brown and Wood's proposal is based on the assumption that the District will issue about $10, 000, 000 of obligations. He asked the Manager to clarify whether their fee would be adjusted if the District issues less than that amount. Director Corbett moved, and Director Maass seconded, that the Board appoint Brown and Wood as bond counsel to review the documents that • set up the Tahoe Donner leak project financing and render an opinion at a cost of $45, 000 plus expenses (the fee to be clarified by Mr. Holzmeister) . All Directors, aye, by voice vote. SO MOVED. DIRECTION RE CHANGING ELECTION DATES TO NOVEMBER OF EVEN-NUMBERED YEARS Elections Code Section 23302 . 1 allows the governing body of a special district, by resolution, to require that its elections of governing board members be held on the same day as the statewide election. The deadline to submit such a resolution to the board of supervisors is March 10, 1991. Since the PUD is a multi-county district, resolutions must be submitted to each county; the election date change will not be effective if either county denies the request. The Directors discussed voter turnout, cost, and the fact that the terms of all board members would be extended by one year. Director Maass noted he thinks it's an excellent idea to change the election dates to even-numbered years as he feels there are too many elections; also, the voter turnout would be much greater. Director Sutton recommended waiting to see if the school district changes their election date before taking any action. Director Corbett moved that the Manager be directed to prepare a resolution changing the election dates to November of even-numbered • years for consideration at the next regular meeting; seconded by Director Curran. All Directors, aye, by voice vote. SO MOVED. 1/21/91 3 CONSIDERATION OF DRAFT MINUTES OF JANUARY 7, 1991 • Director Corbett suggested a correction to the draft and, thereafter, Director Maass moved that the Secretary be directed to prepare the minutes of January 7 , 1991 in final form as amended. The motion was seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. CORRESPONDENCE Donner Lake Utility Company Director Maass mentioned the recent letter from Mr. Williams, owner of Donner Lake Utility, asking permission to use the PUD's water system standards. Mr. Holzmeister said he didn't think there would be any problem with granting his request; the Board agreed and asked Mr. Hyde to provide Mr. Williams with a copy. Letters of commendation Two letters of commendation and appreciation for excellent service relating to customer water problems were received and noted. one from Don and Joyce Bennet commending Paul Rose and Sue Felce; the other from Boyd Paulson written to staff. 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. Financing plan for Tahoe Donner leak project Mr. Holzmeister met with Virginia Horler of Raucher Pierce Refsnes on January 17. Ms. Horler will prepare a presentation for the next Board meeting. Special District Board Management Institute The Board Management Institute is being held in San Diego in March. Manager Holzmeister, Directors Aguera and Curran indicated an interest in attending. Other Directors were encouraged to attend and should advise the Secretary if they are able to do so. General Plan Steering Committee Mr. Holzmeister received an invitation to serve on a panel to • discuss water issues before the Nevada County General Plan Steering Committee. He said he will be attending the meeting scheduled for February 4 in the Truckee Library. 1/21/91 4 Water quality report • The December bacteriological report was included in the packet. Director Sutton thanked Engineering Technician Black for the informative memo she provided along with the summary. Board/Manger Workshop The second workshop with Bob Rausch is scheduled for Saturday, February 2 at 9: 00 AM in the PUD conference room. All Directors said they would be present. SPPCo agreement Mr. Holzmeister said he and John Phelps negotiated an extension with Sierra Pacific so that there would be no need to file suit in the Glenshire facilities issue. SPPCo agreed to extend the agreement for one year. Personnel matters Director Curran asked about the employee who quit and inquired as to why the matter wasn't placed on the agenda. The Manager suggested the matter be discussed in closed session. CLOSED SESSION At 8: 36 PM the Board adjourned to closed session for the purpose of discussing personnel and matters in accordance with Government Code Section 54957 . RETURN TO PUBLIC SESSION The Board returned to public session at 10: 01 PM. There was no action taken or direction given as a result of closed session. ADJOURNMENT There being no further business before the Board, the meeting was adjourned. CREE DONNER P BLIC UTILITY DISTRICT i o ep R. Aguer =Predenit Prepared by Susan M. Craig, Deputy District ClerkJ smc • 1/21/91 5