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HomeMy WebLinkAbout1989-03-06 Min - Board REGULAR MEETING . March 6, 1989 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at 7 : 05 P.M. in the TDPUD Board Room. ROLL CALL: Directors Aguera, Sutton, White and Maass were present. Director Corbett was expected. CONSULTANTS PRESENT: Counsel John Phelps. Director Corbett arrived at this point, 7 : 06 P.M. EMPLOYEES PRESENT: Tom Buckhouse, Paul Colburn, Andy Hyde, Peter Holzmeister and Susan Craig. OTHERS PRESENT: Among those present in the audience were Sean Jenkins, Charlie White, Rich Parker, Kevin Debrazier and Martha Cochran. APPROVAL OF MINUTES Director Aguera suggested a correction, then moved that the Board direct the Secretary to prepare the minutes of February 6, 1989 in final form as corrected; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. BILLS FOR BOARD APPROVAL After a review of the bills presented for consideration, Director White moved that they be approved for payment. Director Corbett seconded the motion. All Directors, aye, by voice vote. SO MOVED. MANAGER'S REPORT Report on CMUA conference Mr. Holzmeister said that he and three Directors attended the California Municipal Utilities Association conference held last week in Napa. He followed the electric portion of the conference, he noted, and found the speakers to be excellent. Directors Corbett and Aguera attended talks pertaining to water quality, and Director White said she took many notes on the conferences she attended. She offered to make them available to anyone interested. PUBLIC INPUT Donner Lake Utility Company Charlie White, resident of Donner Lake, asked the status of the District's acquisition of Donner Lake Utility Company. The Manager noted District staff is continuing to exchange information with Dan 1 Stockton, DLUC representative, and is attempting to come up with some suggestions relating to a fair purchase price. Director Sutton recommended that the matter be referred to the Water Committee, and said she thought perhaps an impartial appraisal should be obtained. She moved that the status of acquisition of Donner Lake Utility Company be calendared with the Water Committee within the next few weeks and that Charlie White and other interested people be notified of the meeting. SO DIRECTED by the Chairman. Electrical outage Charlie White asked that the Lineman who responded to his call regarding a brown-out at the west end of Donner Lake be commended. He said the Lineman responded quickly, was very courteous and fixed the problem. Mr. White also noted that on March 5 the District lost a circuit breaker at Donner Lake. He talked to the District's answering service and, again, the response was more than adequate. Special District Local Government Seminar Director Sutton advised that she recently attended the Local Government Seminar in Newport Beach. She said it was very good; it covered Board responsibilities, the Brown Act, long range planning and financial information. Some of the financial • information, she said, would be shared with the Directors during a later agenda item. CORRESPONDENCE March 1, 1989 letter from Richard Burge re Donner Plaza Development With respect to Richard Burge's request for modification of the District' s utility fees for the proposed Donner Plaza Development, the Chairman directed that the existing policy be enforced equally to all customers. COMMITTEE REPORTS Director Maass stated that the Cable TV Committee should have some information at the next regular meeting. They are currently in the process of performing a survey. STATUS REPORT ON RESTRICTED FUNDS AND POSSIBLE DIRECTION CONSIDERATION OF RESOLUTION RATIFYING DECISION TO PURCHASE FmHA LOANS AND DESIGNATING ACCOUNTS FROM WHICH FUNDS WILL BE DRAWN Director Sutton provided copies of the Government Code concerning fees for development projects and reviewed various sections with the Board. A copy is attached for reference. Finance Supervisor Colburn provided a list of the District' s restricted funds and supporting documentation. It was Counsel 's 2 opinion that the District is allowed by law to borrow money from these funds; the material provided by Director Sutton, he said, mainly talks about fees collected for improvements in specific subdivisions. Manager Holzmeister noted that the District's facilities fees aren't connected to anything specific. The Chairman asked Mr. Holzmeister to explain the District' s facilities and connection charges to Director Sutton during a Water Committee meeting. Regarding the District's decision to purchase the two outstanding FmHA loans by borrowing from accumulated restricted funds, Director Maass suggested that, to avoid any potential problem, no funds be borrowed from the restricted facilities fees account. Director Sutton said she thinks there are problems with borrowing from some of the other restricted funds, too. After some discussion, the Chairman said that perhaps Tahoe Donner funds should be integrated with the rest of the District's funds as the District has a contractual obligation to serve the subdivision, but not to have separate restricted funds for the purpose. Director Sutton disagreed, and said she thinks the District should continue to identify specific Dart funds. After more discussion, it was decided that the resolution setting forth the terms of the FmHA loan purchase by way of borrowing restricted funds should state that the Dart funds were accumulated for the purpose of funding capital improvements to the water . distribution system serving Tahoe Donner; that an adequate water source currently exists for Tahoe Donner; and that capital improvements will not be required for Tahoe Donner for approximately 13 years. It is to note that interest earned on the funds shall be specified for Tahoe Donner. Director White said she thinks the amount that's going to be borrowed, contractual term and method of payment needs to be more clear. Mr. Colburn noted that once a closing date is set Farmers Home Administration will provide a final purchase figure. Director Maass directed that the resolution be redrafted and brought back to the next meeting. Director Corbett moved that the Board authorize expending a 5% good faith deposit for purchase of the FmHA notes, and that it be forwarded to Farmers Home prior to the March 9, 1989 deadline; seconded by Director White. ROLL CALL: all Directors, aye. SO MOVED. HIRSCHDALE WATER SYSTEM - SUMMARY OF CONTRACT HISTORY - STATUS REPORT OF AUDIT Civil Engineer Hyde reported that he, Paul Colburn and Peter Holzmeister met with Terry Lowell on February 24 to discuss how to proceed with the audit. Mr. Lowell drafted a letter that requests additional information from Dan Cook; he provided a copy of the • letter to the Directors. He said he believes that Mr. Lowell should be able to develop some firm conclusions about the project's problem areas if Mr. Cook adequately answers the questions 3 contained in the letter. He's hoping to get a revised audit by the • end of March. Mr. Hyde noted that he measured the amount of paving in the project area on February 28 and found less than the amount billed by the contractor. He has alerted both Dan Cook and Joe Suter of the measurements and is recommending holding off action on Change Order No. 7 until the discrepancy is resolved. A possible reduction in the retainage was briefly mentioned, and the Chairman advised Mr. Hyde that the Board had already considered this matter and decided against it. REVIEW OF BIDS AND POSSIBLE AWARD - DUMP TRUCK AND CONSTRUCTION TRAILER FOR WATER DEPARTMENT After hearing Mr. Hyde's recommendation, Director Corbett moved, and Director White seconded, that the Board award the bid for the 53 , 000 GVW dump truck to Big D International in the amount of $70, 623. 48. ROLL CALL: all Directors, aye. SO MOVED. Director Sutton noted that she had reservations about the size of the truck and the cost, but she voted "yes" because staff assured her it would be cost effective. Director Aguera moved that the Board award the bid for the construction equipment trailer to Weaver Equipment Company in the • amount of $12 , 518.97, including tax. Director Corbett seconded the motion. ROLL CALL: all Directors, aye. SO MOVED. COUNSEL'S OPINION RE CHARGING SECOND HOME OWNERS AND PERMANENT RESIDENTS DIFFERENT RATES Counsel Phelps provided a brief summary as to whether the District may legally charge nonpermanent residents of the District a higher rate for electric or water service than is charged to permanent residents. It was Mr. Phelps ' conclusion that the District may charge nonpermanent residents a higher rate for water or electric service so long as there is a reasonable basis for charging a higher rate. Rates established by the rate-fixing body are presumed to be reasonable, and a person challenging the rates has the burden of proving that they are unreasonable. Mr. Holzmeister explained that the District' s electric system is designed and built to meet the peak load which occurs on the first of January each year. The peak load and expense that is incurred is directly related to visitors present in second homes during that period. Those second homes, he said, are using electricity at the most expensive time of the year and the residents are contributing very little throughout the year. It was his feeling that the • customer who contributes to the peak ought to pay a premium. He noted that Sierra Pacific Power offers a lower rate to full-time residents. 4 Charlie White stated that the tourists are supporting the whole economy and permanent residents benefit from them being in the area. He said he feels everyone should pay the same rates. After some discussion, the Chairman directed Mr. Holzmeister to prepare a rough draft of the proposed new rate structure for review by the Electric Committee. RESOLUTION CALLING FOR BIDS ON DISTRIBUTION TRANSFORMERS Director Corbett moved, and Director White seconded, that the Board adopt Resolution No. 8906 approving specifications and calling for bids on distribution transformers. ROLL CALL: all Directors, aye. SO RESOLVED. AUTHORIZATION TO PROCEED WITH PHASE II OF THE PG&E TRANSMISSION STUDY TO DELIVER POWER TO DONNER SUMMIT Mr. Holzmeister advised that Phase II of the PG&E transmission study to deliver power to Donner Summit will specifically identify all reinforcements that will be necessary on PG&E 's system beyond 1992 and the cost of those reinforcements. The total cost of the Phase II study is $34, 450; the PUD portion is $17 , 225. He recommended proceeding, as the District is now very close to consummating an agreement with the Northern California Power Agency. • Director Aguera moved, and Director Corbett seconded, that the District's participation in Phase II of the PG&E study be approved. ROLL CALL: all Directors, aye. SO MOVED. CONSIDERATION OF LEASING A PORTION OF THE NEW COMPLEX TO THE DEPARTMENT OF FORESTRY Manager Holzmeister suggested using the same form with the Department of Forestry as the lease prepared by CalTrans rather than the lease form provided by the California Department of Forestry for renting a portion of the new complex. SO MOVED by Director Corbett; seconded by Director Aguera. All Directors, aye, by voice vote. SO MOVED. ADJOURNMENT There being no further business before the Board, Director Corbett moved that the meeting be adjourned. Director Aguera seconded the motion. SO MOVED by unanimous vote at 9: 12 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By _ James Maass, President J • Prepared by '` 2 Susan M. Craig, Deputy District Clerk smc 5