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HomeMy WebLinkAbout1991-02-19 Min - Board REGULAR MEETING February 19, 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: 04 PM. ROLL CALL: Directors John Corbett, Richard Curran, Pat Sutton and Joe Aguera were present; Jim Maass was expected. EMPLOYEES PRESENT: Tom Buckhouse, Tom Edgman, Andy Hyde, Mike Connell, Debi Black, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Financial consultants, Pam Babbe and Virginia Horler; Bond counsel, Sean Tierney; Engineer, Keith Sauers and Counsel John Phelps. CONSENT AGENDA RESOLUTION AMENDING PENSION PLAN TO INCORPORATE THE PROJECTED UNIT CREDIT METHOD OF PLAN VALUATION Director Corbett moved that the consent agenda be approved as follows: That the Board adopt Resolution No. 9106 amending the pension plan to incorporate the projected unit credit method of plan valuation. The motion was seconded by Director Curran. ROLL CALL: Maass, absent; all other Directors, aye. SO RESOLVED. Director Maass arrived at this point in the meeting, approximately 7 : 06 PM. AWARD OF BIDS Wire and cable Electrical Engineer Buckhouse advised that he reviewed the bids received for wire and cable and recommends award of Schedules A, B, C, D, E, F, H, J, K, L and M to General Pacific, Inc. , and Schedules G and I to King Wire and Cable. The total cost is $48 , 372. 83 ; funds have been included in the 1991 budget. Director Curran moved, and Director Maass seconded, that the Board award Schedules A, B, C, D, E, F, H, J, K, L and M to General Pacific in the amount of $35,070.83 , and Schedules G and I to King Wire and Cable in the amount of $13 , 302 . All Directors, aye, by voice vote. SO MOVED. Heavy duty service truck for Water Department Civil Engineer Hyde reported that two bids were received on the heavy duty service truck for the Water Department; both were from 2/19/91 1 the same truck supplier, Silver State International, but the bids were different because there were two different subcontractors for the bed of the truck. Mechanic Tom Edgman and Water Foreman Mike Connell reviewed the technical portions of the specifications. Both bids comply with the specifications. They recommend that the optional proportional speed control for the boom be ordered. The low bidder offers this feature for an additional $512 plus tax. Mr. Hyde also reviewed the bids and found them to be in compliance with the general requirements. He recommended that the bid be awarded to the low bidder, Silver State with a bed by Jordans in the total amount of $58,728. 24 . This amount includes the basic bid plus the optional proportional speed control. Director Sutton asked counsel to give an opinion as to whether a business can submit more than one bid. Mr. Phelps said he hasn't looked into it, but can't think of any legal reason why they can't. Director Maass moved that the award be made to Silver State with a bed by Jordans including the optional proportional speed control in the sum of $58,728.24 . The motion was seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. POSSIBLE ACTION REGARDING WATER SYSTEM IMPROVEMENTS - STATUS REPORT - CONSIDERATION AND POSSIBLE ACCEPTANCE OF ENGINEERING REPORT FROM SAUERS ENGINEERING - RESOLUTION OF INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS AND APPOINTMENT OF CONSULTANTS INITIATION OF PROCEEDINGS TO FIX STANDBY CHARGES - CALL FOR HEARING ON ORDINANCE APPROVING FINANCING DOCUMENTS Mr. Hyde reported that the Tahoe Donner pipeline replacement design is underway. The call for bids is scheduled for April ; the environmental review is beginning now; construction is to start late May. The Olympic Heights pipeline project is identified in the master plan and scheduled for 1992 . The Herringbone booster pump station is also identified in the master plan and scheduled for 1992 . Regarding the telemetry, a new integrated system will save labor, phone and electricity costs. $45, 000 is now set aside in a restricted fund. The first step is to hire an engineer to perform a preliminary study of needs and available equipment. Construction probably wouldn't start until 1992 . Concerning Proposition 55, the District is waiting for the contract from the state (expected mid 1991) ; construction is scheduled for 1992 through 1995. to The Tahoe Donner, Olympic Heights, Herringbone and the telemetry projects will be financed with the bond issue; Proposition 55 2/19/91 2 projects are above and beyond those expenses, but included in the . proposed finance plan. Director Sutton said that the District hasn't adopted the master plan yet; even if it had been adopted, the Board will still adopt specific projects before funding them. She said she wants to be certain that in a couple of years somebody won't be saying it's not a good idea. She said the Board needs to determine these things. Mr. Sauers noted that there are other projects that could accomplish the same goals. He tried to come up with the best solutions to each problem and said he feels the proposed projects are the most expeditious way to get the desired results. He said he could provide the Board with the alternatives that were investigated before conclusions were reached Director Sutton stated she thinks the Board should go through some sort of process to approve these things and should also do something about releasing funds that belong to a certain part of the system and using them for that part of the system. She said the Board needs to make sure the money that was set aside in the Dart settlement agreement is used for what it should be used for and noted there should be an item on the agenda because there's an obligation on the part of the District relating to the Tahoe Donner water system. PUBLIC INPUT There was no public input. WATER SYSTEM IMPROVEMENTS (continued) Manager Holzmeister reviewed the financing plan using the increased standby charge, $80. A copy of the plan is attached for reference. Keith Sauers reviewed his report on standby fees and explained the determination of benefit and the rationale, law and history involved in reaching his determination. After some discussion, Director Curran moved that the Board accept the engineering report prepared by Keith Sauers; seconded by Director Maass. ROLL CALL: all Directors, aye. Director Sutton noted she voted "yes" with reservations because she feels the Board was rushed into this action and that possibly the engineering report does not cover everything it needs to cover. SO MOVED. The Board reviewed the draft resolutions prepared by Sean Tierney of Brown and Wood. The first makes reference to the proper portions of the IRS code so that the financing qualifies the PUD as tax exempt and also allows the District to recoup some of the preliminary planning costs. Director Maass moved, and Director Corbett seconded, that the Board adopt Resolution No. 9104 , a resolution of intention to issue tax exempt obligations and appointing consultants. ROLL CALL: all 2/19/91 3 Directors, aye. SO RESOLVED. The second resolution was drafted by Mr. Tierney in order to make certain the District follows the required procedures for increasing the standby charge to generate additional revenues. It calls for a protest hearing to be held on March 11, 1991. There was some discussion, and it was decided to include the dollar amount being considered in both the resolution and public notice. Director Maass moved, and Director Corbett seconded, that the Board adopt Resolution No. 9105 initiating proceedings to fix standby charges. ROLL CALL: all Directors, aye. SO RESOLVED. Director Maass moved that a public hearing to consider fixing standby charges be set for 7:45 PM on Monday, March 11, 1991. The motion was seconded by Director Corbett. ROLL CALL: all Directors, aye. SO MOVED. DISCUSSION OF OVERTIME HOURS POLICY Director Curran noted that two employee checks included excessive overtime last pay period. Last week, he obtained a list of the overtime paid and he and Director Sutton discussed the matter with the Manager. Mr. Holzmeister advised that overtime is worked during outages, . weekend system checks, call-outs, vacations, staff turnover, staff shortages, special projects, water quality report, personnel testing, seasonal work and for Board meetings. Between January 1, 1990 and February 8, 1991, a total of 2,798. 25 hours overtime was worked. Hiring an additional employee would cost about $40, 000 annually, but this one employee couldn't perform all the required tasks. The Bookkeeper, Joan Antonucci, worked 445.5 hours during this period, Mr. Holzmeister explained, because Kay Pomponio, Paul Colburn and Nancy Waters left, Joan Price is being trained, and also due to the work order conversion and audit. it will not continue because a clerical person has been budgeted, the recruitment to replace Ms. Waters is almost complete, Joan Prices ent now keeps in Dep artment p training will come to an end, the Engineering p track of facilities fees and work order entry has been automated. He noted that there will always be some overtime. The Manager reviewed the work order project with the Directors. Work orders, he said are used for planning and reporting. It's a completely revised reporting system. Some overtime was necessary for the conversion in order to limit the damage to the District' s accounting system and because details were not received from the consultant until January 7 and S . Employees who worked overtime on the project were Mary Chapman, Tom Buckhouse and Andy Hyde (management employees not paid for overtime hours) ; Bruce Grow, . Debi Black, Maria Chavez-Martinez and Joan Antonucci. Joe Straub and Joan Price also worked on the project, but during regular hours. 2/19/91 4 Director Curran said he has no problem with any overtime in the • District; that he looked at all the overtime and evan 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. He mentioned that Debi Black worked 46 hours overtime in one pay period. He said he has a problem with this as well as all the additional time Ms. Antonucci works; he feels it's too much to ask of an employee. It was his feeling that the work could be distributed over a longer period of time since it was not an emergency situation. Mr. Holzmeister said it was not an emergency, but it will avoid a worse effort later on. Director Corbett stated 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. Director Curran said overtime is the Manager's decision, not the Board' s decision, and that's what disturbs him. . .that the Manager was not concerned about such an excessive amount of overtime. He said he thinks it' s bad policy. Director Sutton disagreed with Mr. Curran. She said the Board is . involved in the Memorandum of Understanding with the Union which sets forth the provisions for overtime, and said maybe some kinds . of overtime should be pre-authorized. Mr. Holzmeister noted that overtime is pre-authorized by the department heads or, in the case of Technical Services and Purchasing/Warehousing, by him. Director Sutton said that another concern should be allowing employees to work in the building alone after hours, and for women to leave the building by themselves at night. She said she' s disturbed about employees being required to work 20 hours during a 24 hour period when it isn't a real emergency. No direction was given. CONSIDERATION OF DRAFT MINUTES OF JANUARY 21 AND FEBRUARY 2, 1991 Director Maass moved, and Director Corbett seconded, that the Secretary be directed to place the minutes of January 21, 1991 in final form. All Directors, aye, by voice vote. SO MOVED. Concerning the draft minutes of February 2 , 1991, Director Sutton requested that action be delayed and that Mr. Holzmeister ask consultant Robert Rauch to prepare a short statement regarding the Board' s responsibility and authority and the Manager being the one carrying out the Board's responsibility and authority. She said Mr. Rauch indicated this was the premise of the whole workshop, and she would like it included with the minutes of that meeting. so CORRESPONDENCE Letter from Wally Stevens dated January 16, 1991 re Gateway 2/19/91 5 easements • The District received a letter from Mr. Stevens, representing the Richard Joseph Trust, offering to transfer certain 20 ' wide parcels in the Gateway subdivision to the PUD. Mr. Holzmeister reported that the Water and Electric Departments see no benefit (and possibly some liability) to the District owning these parcels. No direction was given by the Board. BILLS FOR APPROVAL There was some discussion and, thereafter, Director Maass moved that the bills presented for consideration be approved for payment; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. STAFF REPORT A copy of the staff report has been attached for reference. Water quality report The monthly bacteriological report for January 1991 was presented and is attached. Water production report • Mr. Hyde prepared an analysis of water produced by the PUD from 1978 to the present time. Manager Holzmeister said he thinks it' s important to monitor water production trends to identify any uses that can be curtailed. One big factor in the District' s water production is the failing Tahoe Donner system; once the leaks are repaired, there should be a reduction in water production. Director Maass asked that the Board be kept apprised of what' s going on state-wide with the water situation. Financial statements Office Manager Chapman, using an overhead presentation, analyzed the various statements presented to the Board and explained how they fit together. That information has been attached. OVERTIME HOURS POLICY Debi Black, Engineering Technician, addressed the Board concerning overtime hours. (Ms. Black' s entire statement, as requested by Director Sutton, is attached to these minutes as a part of the record. ) CLOSED SESSION The meeting was adjourned to closed session at 10: 45 PM to discuss pending litigation and personnel matters in accordance with Government Code Sections 54956.9 (c) and 54957. 2/19/91 6 RETURN TO PUBLIC SESSION The meeting was returned to public session at 11: 34 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. CREE DONNER LIC UTILITY DISTRICT o ep® R. guer Prepared by� %u `�� Susan M. Craig, Depu y District Clerk smc 2/19/91 7