HomeMy WebLinkAbout1993-09-07 Min - Board REGULAR MEETING
® September 7, 1993
In accordance with District Code Section 2.08.010 the TDPUD minutes are action only
minutes All Board meetings are recorded on audio tapes which are preserved
perpetually and made available for listening to any interested party upon their request.
The regular meeting of the Board of Directors of the Truckee Donner Public Utility District
was called to order by President Aguera at 7:09 PM in the TDPUD Board Room.
ROLL CALL: Directors Joe Aguera, John Corbett, Bob Jones, James Maass and Patricia
Sutton were present.
EMPLOYEES PRESENT: Mary Chapman, Susan Craig, Peter Holzmeister, Dave Rully
and Bob Quinn.
CONSULTANTS PRESENT. Attorneys Steve Gross and John Phelps; Consulting
Engineer Keith Sauers; Virginia Horler of Rauscher Pierce Refsnes, Inc.; Sean Tierney
of Brown & Wood.
OTHERS PRESENT: Clay Castleberry of the Town of Truckee; Bill Quisnell.
REFINANCING OF THE 1986 CERTIFICATES OF PARTICIPATION ISSUANCE -
STATUS REPORT - CONSIDERATION OF A RESOLUTION AUTHORIZING THE
EXECUTION AND DELIVERY OF A LEASE AGREEMENT, A TRUST AGREEMENT,
A SITE AND FACILITIES LEASE, AN ESCROW AGREEMENT, A CONTRACT OF
PURCHASE AND AN OFFICIAL STATEMENT AND CERTAIN MATTERS IN
CONNECTION THEREWITH
The District is currently considering entering into a Certificate of Participation financing.
The purpose of this transaction is to refinance the District's previously issued Certificates
of Participation delivered in the original principal amount of$3,050,000. The proceeds of
the Refunded Certificates were used to construct the PUD headquarters complex.
Mr. Tierney and Ms. Horler briefly summarized the structure of the financing as well as
explaining the financing documents and the rights and obligations of the District.
Director Maass moved, and Director Corbett seconded, that the Board adopt Resolution
No. 9340 authorizing the execution and delivery of lease agreement, a trust agreement,
a site and facilities lease, an escrow agreement, a contract of purchase and an official
statement, and certain other actions in connection therewith. ROLL CALL: all Directors,
aye. SO RESOLVED.
PUBLIC INPUT
There was no public input.
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• CONSIDERATION OF A JOB DESCRIPTION FOR THE POSITION OF ELECTRIC
SYSTEM ENGINEER AND AUTHORIZING THE GENERAL MANAGER TO ADVERTISE
FOR APPLICANTS
The General Manager and Electric Superintendent prepared a revised description for the
position of Electric System Engineer that fits the current organizational structure of the
PUD after speaking with the members of the Electric Committee.
The Board reviewed the job description and discussed the $45,000 to $55,000 salary
range. The description is to be clarified - it is necessary that the Engineer be registered
in the State of California or have the ability to obtain California registration within a limited
period of time.
Director Maass, and Director Corbett seconded, moved that the Board adopt the job
description and salary range for Electric System Engineer and authorize staff to advertise
for applications for the position. All Directors, aye, by voice vote. SO MOVED.
CONSIDERATION OF A SERVICE CONTRACT WITH RAUSCHER PIERCE AND
REFSNES TO ANNUALLY MONITOR THE DISTRICT'S COMPLIANCE WITH
ARBITRAGE REQUIREMENTS RELATING TO COP ISSUANCES
When the PUD issued the Certificates of Participation to finance the water system
• improvements, it agreed to pay a penalty in lieu of rebate if the payment schedule
requirements outlined in the trust agreement were not met. The District met the spending
requirements for the first three periods but not the fourth period; $24,560.79 is due the
Internal Revenue Service. Also, 100% of the available construction proceeds will not be
spend by November 15, 1993, so another penalty will be due on or before February 11,
1994.
The District will need to closely monitor the rebate/penalty liability for the term of both the
Certificates of Participation. Also, there are a few complex calculations that must be
performed as well as keeping informed of all of the new federal arbitrage legislation and
its application to the PUD. Due to the complexity, staff is recommending a consultant
perform the calculations and monitor District compliance.
Director Maass moved that the Board accept the Penalty in Lieu of Rebate Analysis for
the 1991 Water System Improvement Project, Certificates of Participation as prepared by
Rauscher Pierce Refsnes, Inc.; further, that the District enter into an agreement with
Rauscher Pierce Refsnes forarbitrage rebate consulting services for both the 1991 Water
System Improvement Projects Certificates of Participation and the 1993 Refunding
Certificates of Participation and rebate calculation services only as necessary. The motion
was seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED.
PROPOSITION 55 WATER SYSTEM IMPROVEMENT PROGRAM STATUS REPORT
• Application has been made to the Department of Water Resources for the third
disbursement of loan funds to the District in the amount of $185,853.72 and it is now
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• being processed by the State. This brings the total of fund disbursements to $678,443.68,
or 14% of the $5 million funding contract.
Chlorination Stations - Construction is ahead of schedule. The project is approximately
87% complete in 55% of the contract time.
Downtown Pipelines - Construction is behind schedule. The project is about 44%
complete in 70% of the contract time. Construction is substantially finished on East River
Street with one tie in to an existing pipeline remaining. Main line construction is
substantially complete on Riverside Drive with some of the services and paving
remaining. Construction is currently in the areas of Trout Creek Road, School Street and
Church Street.
New Wells and Storage Tanks - Negotiations continue for acquisition of a new well site
and water storage tank site north of Prosser Heights subdivision. Preliminary boundary
surveying for three sites is complete and an appraisal report is being prepared. Right of
entry to property adjacent to Glenshire Drive has been requested for purposes of allowing
the excavation of a geological test hole.
DOWNTOWN PIPELINE PROJECT - CONSIDERATION OF TWO CONTRACT
CHANGE ORDERS - CONSIDERATION OF A PROGRESS PAYMENT REQUEST
• The Consulting Engineer believes the Contractor will not complete the project by October
15, 1993. This would have a negative affect on the District's relationship with the
downtown area residents and merchants. Contract Change Order No. 1 is an attempt to
assure completion of the highest priority areas this yearwhile allowing the contractoruntii
June 30, 1994 to complete the project. The change order does not alter the price.
Contract Change Order No. 2 covers two items that were not included in the original
contract - customer side service lines including some landscaped areas, retaining walls
and other features, the extent of which was unknown at the time of design; individual
pressure reducing valves for those customers who are currently served in lower pressure
sub-service areas.
Director Maass moved that the Board approve Arcadian Enterprises' Contract Change
Order No. 1 for schedule modification; seconded by Director Corbett. All Directors, aye,
by voice vote. SO MOVED.
Director Maass moved, and Director Corbett seconded, that the Board approve Arcadian's
Contract Change Order No. 2 for an increase of$24,600.00. All Directors, aye, by voice
vote. SO MOVED.
Director Maass moved, and Director Corbett seconded, that the Board approve Periodic
Estimate for Partial Payment No. 3 in the amount of $211, 981.32 to Arcadian
• Enterprises. All Directors, aye, by voice vote. SO MOVED.
CHLORINATION STATIONS PROJECT - CONSIDERATION OF A PROGRESS
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® PAYMENT REQUEST
After brief review, Director Maass moved that the Board approve payment of Periodic
Estimate for Partial Payment No. 3 on the Chlorination Stations Project in the amount of
$65,097 to JJM Engineering Constructors, Inc. Director Corbett seconded the motion. All
Directors, aye, by voice vote. SO MOVED.
SCADA PROJECT- CONSIDERATION OF A PROGRESS PAYMENT REQUEST FROM
SANDEL/AVERY ENGINEERING - CONSIDERATION OF A PROGRESS PAYMENT
REQUEST FROM MOUNTAIN ELECTRIC - CONSIDERATION OF A RESOLUTION
ACCEPTING THE MOUNTAIN ELECTRIC CONTRACT AS COMPLETE AND
AUTHORIZING THE FILING OF THE NOTICE OF COMPLETION - TRANSFER OF
FUNDS
Director Maass moved, and Director Corbett seconded, that the Board approve payment
to Sandel/Avery Engineering of Invoice No. 831931 in the amount of $25,953.39. All
Directors, aye, by voice vote. SO MOVED.
Director Maass moved that the Board approve Mountain Electric's Periodic Estimate No.
4 in the amount of$10,590.75; seconded by Director Corbett. All Directors, aye, by voice
vote. SO MOVED.
Mountain Electric has completed all of the work included in the contract and change
orders. Sande/Avery has provided written confirmation that the work has been completed.
Director Maass moved that the Board adopt Resolution No. 9341 approving and accepting
SCADA electric work performed by Mountain Electric and directing the filing of the Notice
of Completion; seconded by Director Corbett. ROLL CALL: all Directors, aye. SO
RESOLVED.
Director Maass moved, and Director Corbett seconded, that the Board authorize a
transfer of $36,544,14 from the 1991 Certificates of Participation acquisition fund to
reimburse the Water General Fund. All Directors, aye, by voice vote. SO MOVED.
UNDERGROUND FEEDER NUMBER 3 PROJECT - STATUS REPORT -
CONSIDERATION OF CONTRACT CHANGE ORDER NO. 1 - CONSIDERATION OF
PROGRESS PAYMENT REQUEST NO 1 - CONSIDERATION OF A RESOLUTION
ACCEPTING THE PROJECT AS COMPLETE AND AUTHORIZING THE FILING OF
THE NOTICE OF COMPLETION
Both contract and PUD crews have been working for the past several months in the
Tahoe Donner area to provide a more reliable distribution system. One of the projects
undertaken was to establish a third feeder out of Tahoe Donner to better serve the east
Tahoe Donner and Gateway areas. This circuit will provide for the distribution system to
• transfer load and for the existing substations in the District to be able to handle additional
loads.
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. Dale Burt has completed construction of Underground Feeder No, 3 Project, Tahoe
Donner Substation, including installation of manholes, conduit and risers. The District
Electric Planner and inspector on the project confirms that the construction was
completed in conformance with the approved plans and specifications.
Director Maass moved that the Board approve Dale Burt's Contract Change Order No.
1 for a deduction in the contract amount of $500; seconded by Director Corbett. All
Directors, aye, by voice vote. SO MOVED.
Director Maass moved, and Director Corbett seconded, that the Board approve payment
of Periodic Estimate for Partial Payment No. 1 for the amount of$68,277.60 to Dale Burt.
All Directors, aye, by voice vote. SO MOVED.
Director Maass moved, and Director Corbett seconded, that the Board adopt Resolution
No. 9342 approving and accepting the Underground Feeder No. 3 Project, Tahoe Donner
Substation, and directing the filing of the Notice of Completion. ROLL CALL: all Directors,
aye. SO RESOLVED.
CONSIDERATION OFAUTHORIZING THE GENERAL MANAGER TO FILEA DEMAND
FOR TRANSMISSION SERVICES LETTER WITH SIERRA PACIFIC POWER
COMPANY
The Board briefly reviewed the draft demand letter satisfying the requirements of the 1992
Energy Policy Act for submission to Sierra Pacific Power Company. Sierra will be asked
to respond within 60 days.
Director Maass moved that the Board authorize the General Manager to submit the
demand letter to Sierra Pacific; seconded by Director Corbett. All Directors, aye, by voice
vote. SO MOVED.
CONSIDERATION OF A RESOLUTION SUPPORTING PUBLIC POWER WEEK
Director Maass moved, and Director Corbett seconded, that the Board adopt Resolution
No. 9343 in support of Public Power Week 1993. ROLL CALL: all Directors, aye. SO
RESOLVED.
CONSIDERATION OF A POLICY REGULATING SYSTEM DISTURBANCES
RESULTING FROM CUSTOMER EQUIPMENT
At the August 16 meeting, the Board discussed voltage fluctuations at TTSA as a result
of the inductive load at the neighboring Teichert facility.
The Board reviewed the Electric Supervisor's proposed amendment to District policies
relating to a customer adding load to an installed system; thereafter, the Chairman
. directed that a public hearing be scheduled for September 20 to consider adoption of a
policy relating to system disturbance. Mr. Quinn is also to review the policy relating to use
of generators by customers.
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• CONSIDERATION OF A LEASE OF PROPERTY FROM TEICHERT AGGREGATES
FOR USE AS A STORAGE FACILITY
Currently poles are stored at the Airport Well property; occasionally, there are so many
that Airport property is encroached upon. Wire and transformers are stored inside the
fence of the Martis Valley Substation. This violates safety regulations. With materials
stored south of the Truckee River, District crews spend quite a bit of time sitting in traffic.
It would be beneficial to move the materials to the north side of the river to a location with
good access for PUD vehicles.
Teichert Aggregates has been approached about leasing some land and a building at
their property near Donner Pass and Cold Stream.
Director Maass moved, and Director Corbett seconded, that the Board authorize counsel
to draft an appropriate lease with Teichert for storage of materials and authorize the
Board President to execute it on behalf of the TDPUD. All Directors, aye, by voice vote.
SO MOVED.
DONNER VIEW STATION AND TANK - CONSIDERATION OF TRUCKEE FIRE
PROTECTION DISTRICT'S REQUEST TO RESCIND LEASE - CONSIDERATION OF
LEASE WITH THE TOWN OF TRUCKEE
• The Board recently authorized a lease with the Truckee Fire Protection District for
installation of a radio repeater at the Donner View water tank facility. Upon further
analysis, the Fire District decided that the site does not provide sufficient coverage and
selected another site.
The Town of Truckee is in the process of setting up its radio communication system and
is interested in knowing if the District would allow the Town to use the Donner View site.
Staff discussed the matter and concludes there would be no problem.
Director Maass moved, and Director Corbett seconded, that the Board rescind its
approval of a lease with the Truckee Fire Protection District; further, that the Board
authorized the General Manager to execute a radio repeater site lease agreement with
the Town of Truckee, if it desires, for either the Donner View or Ponderosa Palisades
hydro site. All Directors, aye, by voice vote. SO MOVED.
CONSIDERATION OF MINUTES OF AUGUST 16, 1993; POSSIBLE ACTION
Counsel Phelps advised that, since the August 16 meeting, it has been learned that the
supplier of the emergency power generator will not be modifying the truck upon which it
will be mounted. A clarifying statement will be placed in the August 16 minutes.
Director Maass moved, and Director Corbett seconded, that the minutes of August 16,
4p 1993 be approved as clarified by Counsel Phelps. ROLL CALL: Corbett, Jones, Maass
and Aguera, aye; Sutton, no. SO MOVED.
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. CORRESPONDENCE
T & S Construction letter of August 20, 1993
For informational purposes, the Board was provided with the August 20, 1993 letter from
T & S Construction regarding Contracts A and C of the Tahoe Donner Pipeline
Replacement Project.
CONSIDERATION AND POSSIBLE APPROVAL OF BILLS
After review, Director Corbett moved, and Director Jones seconded, that the bills
presented for consideration be approved for payment. All Directors, aye, by voice vote.
SO MOVED.
Director Maass moved that staff be directed to transfer out of the Certificates of
Participation funds on deposit with the LAIF $115 to reimburse the general fund for the
SCADA related bill from Porter, Simon, Graham, Phelps and Cuttitta. All Directors, aye,
by voice vote. SO MOVED.
STAFF REPORT
A complete copy of the staff report is attached for reference.
Financial reports
District financial reports for July 1993, consisting of a statement of general fund,
investment report, budget report, electric and waterbalance sheets and electric and water
income statements, were provided for review.
1994 Budget calendar
Staff has initiated the 1994 budget process. The same budget format as was used during
the past few years will be used, but more narrative information will be added. Attached
is a calendar to keep the Board and staff on schedule. Board members were asked to
express concerns and ideas that could impact the budget.
CMUA Energy Efficiency Committee meeting in Truckee
The Planning Director, who serves on CMUA's Energy Efficiency Committee, has
arranged for that committee to meet in Truckee toward the end of September. He
provided a memo and schedule of events for review by the Board and invited members
to sit in on activities that are of interest.
Sale of surplus telephones
• Recently, staff solicited bids for sale of the PUD's surplus telephone system. No bids
were received. Staff will proceed to dispose of the system in accordance with District
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. policy and report significant action to the Board.
CLOSED SESSION
At 8:50 PM, the Board adjourned to closed session to discuss the Black arbitration in
accordance with Government Code Section 54956.9(a), threatened litigation in
accordance with GC Section 54956.9(b)(1) and personnel, GC Section 54957.
RETURN TO PUBLIC SESSION
The Board returned to public session at 10:25 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 at 10:26
PM.
TRUCKEE DONNER PU LIC UTILITY DISTRICT
o ep R. Aguera, P e erlt
• Prepared by
Susan M. Craig, Deputy District Clerk
smc
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