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HomeMy WebLinkAbout1989-01-03 Min - Board PublicTruckee Donner tiliDistrict Post Office Box 309 ® 11570 Donner Pass Road a Truckee, California 95734 (916)587-3896 '404 REGULAR MEETING 7 : 00 P.M. - Tuesday, January 3, 1989 TDPUD Board Room A G E N D A 1. Call to order 2 . Roll call 3 . Approval of minutes: a) December 5 and 19 , 1988 ; Board direction 4 . Bills for approval 5 . Manager' s report - possible action or direction a) Status of Hirschdale audit b) CMUA annual meeting 6. Public input 7 . Correspondence 8 . Committee reports PUBLIC HEARING (7 : 30 P.M. or as soon thereafter as possible) 1. Consideration of budget for 1989 UNFINISHED BUSINESS 1. Boca hydroelectric project - discussion and possible direction NEW BUSINESS 1. Review of vehicle allowance for District Engineer 2 . Consideration of Counsel ' s proposal to increase hourly rate for attorneys ' fees 3 . Consideration of resolution authorizing increase in transfer fee CLOSED SESSION RETURN TO PUBLIC SESSION ADJOURNMENT C E R T I F I C A T I O N I hereby certify that the foregoing agenda has been posted in the District office and Government Center, provided to the U. S. Post Office and County Library for posting, and mailed to the Directors and in ested/parties on December 29, 1988 . Susan M. Craig, Deputy D' Itrict Clerk REGULAR MEETING January 3, 1989 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Maass at 7 : 07 P.M. in the TDPUD Board room. ROLL CALL: Directors Aguera, Corbett, White and Maass were present. Director Sutton was expected. EMPLOYEES PRESENT: Tom Buckhouse, Mary Chapman, Paul Colburn, Andy Hyde, Bev Johnson, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps. OTHERS PRESENT: Among those present were Jeff Heuseveldt, Shelly Rockwell, Sandi Ellis, Jezus Jimmenez, Chris Marking, Esmeralda Franjion, Todd Saylor, Tom Marking, Laurie Kelly, Kevin Gum, Michelle Berton, Trista Thomson, Erin McCready and Ron White. APPROVAL OF MINUTES Director Sutton arrived at this point in the meeting, 7 : 09 P.M. Director White suggested that some clarification be made to the • draft minutes of December 5, 1988, and thereafter, Director Corbett moved that the Secretary be directed to prepare them in final form as corrected; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. Director White noted a correction to be made to the December 19 , 1988 draft minutes and then moved that they be prepared in final form; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL It was noted that the bill in the amount of $18, 369 . 96 from West Coast Equipment was for rebuilding the high ranger bucket for Unit No. 16. This repair was authorized by the Board about six weeks ago, Mr. Holzmeister advised. Funds will come out of the 1988 budget. Director Sutton mentioned the bill from Tahoe Instant Press for customer credit forms, business cards and letterhead. She asked the Manager to check into having the letterhead over-printed to include the Directors ' names. Director Corbett moved, and Director White seconded, that the bills presented for consideration be approved for payment. All Directors, aye, by voice vote. SO MOVED. 1 MANAGERS REPORT Status of Hirschdale audit Mr. Holzmeister reported that the Hirschdale audit is underway and Terry Lowell will be submitting a status report. He provided the Board with a copy of Dan Cook' s memo relating to a meeting Burton Burgess of Terry Lowell Associates and also a copy of the December 9, 1988 letter from the Department of Health Services. CMUA annual meeting The annual meeting of the California Municipal Utilities Association will be held at the Silverado Resort (in Napa Valley) February 28 through March 3 . The Manager noted that funds have been budgeted and the conference is usually an excellent one. He asked the Directors to let him know if they would like to attend. PUBLIC INPUT Hirschdale Bev Johnson, member of the audience, asked when the Hirschdale water system would be going on line. The Manager noted that the District will probably be in a position within a month to start accepting applications for service; however, the weather may be a determining factor at this point. Several items need to be taken care of - a water test on the inside of the tank and other minor punch list items as well as the physical connections to the homes. Director Sutton suggested that the Board give explicit direction having to do with connection of individual services to the system, and asked for this matter to be placed on a future agenda. Truckee General Plan The Chairman referred to Barbara Bartels article, "Insight on Tomorrow, " from the December 22 , 1988 issue of the Sierra Sun. In the article Judd Dygert, who heads the open space committee, was quoted as saying, "Things aren't as rosy as people would have you believe. There seems to be a tendency in the PUD to say we have water forever, but I have heard from other sources that simply isn't true. We think there may be some serious limitations on how many people this area can support. " Director Maass said he feels the limiting factors will be a lot of other things before lack of water - such as jobs and traffic. He contended that the community could not support a population of 50, 000 even though there is water to serve 50, 000 people. Manager Holzmeister reported that he appeared before the committee about six months ago to comment on the availability of power and water to the community and the District's obligation to serve, and that Mr. Dygert's statement about water is not justified. 2 ® Director Sutton suggested that the Manager be directed to write a letter having to do with low-cost housing and second dwelling units on lots originally planned for single family residences, as this could have an impact on the District' s ability to serve. It should be addressed, she said, before the plan is finalized. Director Maass noted that the District is obligated under the law to serve water and power to the best of its ability; its purpose is not to control or limit growth; that is the job of the supervisors. CORRESPONDENCE There was no correspondence discussed by the Board. COMMITTEE REPORTS There were no committee reports. PUBLIC HEARING Consideration of budget for 1989 The public hearing was opened at approximately 7 : 30 P.M. Manager Holzmeister reviewed the proposed summary of 1989 budget changes with the Board, and noted they would result in a new income in both • the Water and Electric Departments and establish 60-days working capital in the general fund. In the Electric Department, the budget as prepared originally showed a net income (loss) of ($245, 124) and general fund balance of $427,873 . By making the changes listed following, the department will show a net income (loss) of $161, 538 and general fund balance of $834, 535: increase transfer fee by $43 , 000, control load for Water Account - $78, 660, add in Electric operation overtime - $19, 502 , collect fee for street lighting - $8, 500, redesign rates - $257, 000. The budget as prepared for the Water Department showed a net income (loss) of $104 ,729 and general fund balance of ($5, 229) . By making the changes listed following, the department will show a net income (loss) of $123 , 690 and general fund balance of $180, 682 : increase the transfer fee, $750, add in Water operation overtime in the amount of $18,211, unrestrict interest in the amount of $30, 000 on prepaid connection fees, add in $33,950 for new services (overhead was added twice) , $43 , 000 for the Hirschdale grant, and $60, 000 in unreimbursed project costs. After some discussion, Director Maass proposed that the $30, 000 interest on prepaid connection fees continue to be restricted, which would lower the Water Department general fund balance to • $150, 682 . Director Sutton questioned whether or not the District should have $1, 000, 000 to carry over to the next year or whether the rates 3 should be lowered. Cash flow and deficit spending were discussed. Director Maass described "cash flow" as spending money not yet received; and "deficit" as spending money that' s you're not going to get. Several questions posed by Tony Rivara were answered. There were no other questions or comments from the audience, and Director Corbett moved that the hearing be closed at 8: 10 P.M. Director Corbett moved that the Board adopt the budget changes as proposed with the exception of unrestricting the interest on the prepaid connection fees; $30, 000 will remain restricted. The motion was seconded by Director White. Director Sutton noted that the budget changes include revenues from certain sources. She said she has some doubt as to whether the budget can be adopted without adopting those revenue changes at the same time. The Chairman noted that the budget will be reviewed in March. If the Board has not reviewed and increased revenues by that time, appropriate budget cuts will be made. Director Sutton said she is concerned that the budget contains figures but the District goes over them sometimes by considerable amounts either with or without Board approval, and that the budget is not really a controlled document, just an estimated guideline. Director White noted that the Finance Committee is working on a policy to bring to the Board which will provide controls over the budget. A roll call vote was taken on Director Corbett's motion to adopt the budget and summary of changes: All Directors, aye, with the exception of Director Sutton, who voted "no. " SO MOVED. BOCA HYDROELECTRIC PROJECT - DISCUSSION AND POSSIBLE DIRECTION Manager Holzmeister recapitulated the Boca hydroelectric project, which has been in the works for about ten years. Recently, the Federal Energy Regulatory Commission denied the District 's request for a stay of the license, which requires commencement of construction by May 1, 1989. Ferris Gilkey of R. W. Beck and Associates noted that the District argued in the motion for stay that information from water quality studies was needed before the optimal project design could be decided upon. It was FERC's contention that the District is in a position at this time to assess the economic feasibility of the project and to settle on a final design without further studies. Mr. Gilkey advised the Board of its options: authorize the design activities needed to support initiation of construction by May 1, 1989 ; file further pleadings at FERC in hopes that the agency will • reconsider its stay decision or ask FERC to rescind its order issuing the Boca license, leaving the license application in a pending status; initiate Congressional action to extend the license; surrender the license and immediately file for a 4 . preliminary permit in order to preserve priority status against other potential applicants; surrender the license. After discussion, Director Corbett moved that the General Manager be directed to write to the Federal Energy Regulatory Commission surrendering the Boca hydroelectric license with the understanding that the District may or may not be able to get the license back in the future; seconded by Director Aguera. ROLL CALL: all Directors, aye. SO MOVED. REVIEW OF VEHICLE ALLOWANCE FOR DISTRICT ENGINEER The Board compared the Electrical Engineer's vehicle allowance to the cost of operating a 1/2 ton, 4-wheel drive and mini pick-up trucks. At the present time, Mr. Buckhouse is receiving $189 per month plus 8 cents per mile. This averages out to 37 cents per mile. A comparable District vehicle is costing 49 . 6 cents per mile. After some discussion, the Chairman directed that the auditors be consulted to determine if this method of payment is proper. CONSIDERATION OF COUNSEL'S PROPOSAL TO INCREASE HOURLY RATE FOR ATTORNEYS' FEES The Directors were sent a letter from Porter, Simon, Graham and • Phelps containing a proposal to increase their hourly rate for attorneys ' fees, effective during 1989. Director Sutton stated she feels Counsel and the District should be operating under some kind of agreement outlining services and rates, and asked for a copy of the original letter of agreement and subsequent modifications. Also, she suggested soliciting proposals from other law firms through the mail and newspaper. The Manager reviewed the hourly fees charged by the PUD' s other various professional consultants. After some discussion, Director White said she feels Mr. Phelps' request is reasonable, but moved to solicit proposals from other law firms as suggested by Director Sutton. Director Sutton seconded the motion. ROLL CALL: Sutton, yes, all other Directors, no. MOTION FAILED. Director Aguera moved, and Director White seconded, that the Board approve Counsel 's request to increase the firms hourly rate to $110 per hour. ROLL CALL: all Directors, aye. SO MOVED. Director Sutton suggested that, when legal research is required, the Board give Counsel specific direction to do such research. (Please see clarification in the January 16, 1989 minutes. ) CONSIDERATION OF RESOLUTION AUTHORIZING INCREASE IN TRANSFER FEE Office Supervisor Chapman reviewed with the Board the procedure followed by office staff to reconnect or transfer a service to a new customer and to disconnect a customer when they move out of the S • District. The current charge is $15. She explained that this fee does not cover the District' s costs. Regular pay for a lineman is $37. 51; time and a half is $107. 16; double time pay is $133 . 41. Mrs. Chapman noted that transfer fees charged by other utilities during office hours are as follows: WestStar Cable, $37 .50; Sierra Pacific, $25; Plumas Sierra, $5 membership fee and $10 transfer fee; SMUD, no charge. Counsel Phelps advised that Government Code Section 54994 . 1 - 54994 . 3 sets forth the requirement for a public hearing for all fee increases. After some discussion, Director White moved that the Board hold a public hearing at 7 : 30 P.M. on January 16, 1989 for the purpose of considering an increase in the miscellaneous service fee schedule. Director Maass suggested the following fees be placed in the draft: During office hours, $40; when the District is required to pay time and a half, $100; when the District is required to pay double time, $130. The motion was seconded by Director Corbett. ROLL CALL: all Directors, aye. SO MOVED. Counsel was asked to advise as to what method should be used to establish new fees - motion, resolution or ordinance. ADJOURNMENT There being no further business before the Board, Director Corbett moved that the meeting be adjourned at 10: 30 P.M. Director Aguera seconded the motion and it was passed unanimously. TRUCKEE DONNER PUBLIC UTILITY DISTRICT J4Mnes A. Maass, Per sident, r Prepared by Susan M. Cra g, Deputy District C erk smc 6 BILLS FOR BOARD APPROVAL - JANUARY J^ 1989 TOTAL ELECTRIC WATER GENERAL DESCRIPTION --------------------------------------------------------------------------------------------- 8IG D INTERNATIONAL 1,394.S8 1,394.58 PARTS FOR UNIT 12, 16, AND lO 0C DON0UG8, B0LL&0D Q ALLE8 3/620.02 231,04 ],]97.70 TDUCK8E RIVER ISSUES (23I.04), GROUNDWATER ORDINANCE (3397,78) PORTER, SIM0N, GBDD&M & y§OL93 1/859.10 1,05%10 L8[JQL SERVICES: CAL TRANS (112.50) ,BIDSCB[8QLD (90.00) , J. M&{}G80 (75.08) , G%0E8&I. BOJI088S (l501�60) S&CBA8E0T8 PIPE WORKS 2,586�76 2,506.76 ImVE0I0RY-10 G& E.R.W. DI28 STD2Q.%E8 SERVICE AND 3UYPLl! 2/341.27 1,142.05 1,09902 RE-CONDITIONED ASPHALT BREAKER, SPADE, CUTTER POLE CAW, CHAIN, GUARD TAHOE INSTANT PRESS 1,233.5l 1,2]}.51 CUSTOMER CREDIT FORMS, LETTER BD8D PAPER, BUSINESS CARDS RE3C0 UTILITY 1,838.25 1,83&35 W83TI0GB0UCD 30 08T8D WITH ELECTRONIC DEMAND 8OGOL&T0B, 8D&T SHRINK CAP WEST COAST EQUIPMENT 18,369.96 10,36%96 B8BKII.T HIGH 8AN6D8 BUCKET FOR UNIT 16 ------------------------------------------------ ]3,25J.3J 23/075.88 7,083.76 3,092.69