Loading...
HomeMy WebLinkAbout1989-03-20 Min - Board REGULAR MEETING March 20, 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 : 02 P.M. in the TDPUD Board Room. ROLL CALL: Directors Aguera, Corbett, Sutton, White and Maass were present. EMPLOYEES PRESENT: Tom Buckhouse, Paul Colburn, Andy Hyde, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps. OTHERS PRESENT: Among those present in the audience were Rick Ingebritsen and Anthony Rivara. APPROVAL OF MINUTES John Corbett moved that the minutes of February 6, 1989 be approved as corrected; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL • Responding to Director Sutton' s question, Mr. Holzmeister noted that the bill from McDonough, Holland and Allen relates to the groundwater lawsuit with the County. He explained that the County requested a modification of the Judge' s opinion which was sent to McDonough for review. The Board asked to be copied with the County's request and (when received) the final opinion. Note was made of Bruce McDonough' s serious illness. The Board asked the Manager to send a bouquet to him at Sutter Memorial and let them know the cost (so they may contribute the appropriate amount) . The Manager explained that the bill from the Nevada County Auditor described as "special assessment charges on 88-89 tax roll" is for their service on the District's behalf in collecting water and electric standby fees. The Board suggested changing the wording on the list of bills presented so that it is more clearly understood. Director Aguera moved, and Director White seconded, that the bills presented for consideration be approved for payment. All Directors, aye, by voice vote. SO MOVED. MANAGER'S REPORT Water quality report The Board received the updated water quality report through the month of February. Mr. Holzmeister noted that the problem the 1 District encountered in the Prosser system during October has not . repeated itself. Audit status report Manager Holzmeister advised that the audit team from Touche Ross is presently on site. He suggested a schedule for completing the audit - March 24 , Audit Committee (Finance Committee) meeting at 4 : 00 P.M. ; March 27, audit workshop, 7 : 00 P.M. ; April 14 , issue the final financial statements. Mr. Holzmeister said that he will be escorting a group of boy scouts to Mexico during the week of March 26 and will not be present, but he suggested the Board go forward with the workshop on March 27 regardless. Director Sutton stated that she would like to be involved with the Finance Committee since she is now the Board Treasurer. Director Aguera volunteered to step down from that committee, and the Chairman appointed Director Sutton. He indicated that she will remain on the Water Committee. After some discussion, the Board made the decision to go forward with the Audit Committee meeting on March 24 and the audit workshop on March 27 . District organization chart The Board reviewed the proposed organization chart and description of old and new functions for the various departments. Mr. Holzmeister explained the changes to the Directors. Director White noted that work orders are included in both the Finance and Engineering Departments. After some discussion, it was decided that the Engineering function should indicate work order preparation and review. With respect to the handling of personnel records, Director Sutton stated she thought this should be a function of the Executive Secretary rather that the Office Supervisor. She also said she thinks this position is directly responsible to the Board rather than the Manager and asked for a copy of the job description approved by the Board. The Chairman asked the Manager to provide documentation on the Executive Secretary position. Director Sutton noted that she would like all department heads to report to the Board since they are hired by the Board. The other Directors did not indicate their agreement with this idea. With respect to Technical Services, Director Sutton suggested this department report to the Operations and Engineering Departments . rather than directly to the Manager; the Manager and Board agreed. Director Maass directed Mr. Holzmeister to redraft the organization chart taking Director Sutton's suggestions into consideration. 2 i PUBLIC INPUT Director Sutton said she thinks the District' s 60th anniversary will be in May and suggested doing something to acknowledge 60 years of public power. The Chairman thanked her for her input, put noted the District was formed in 1927 , making this its 62nd year of existence. CORRESPONDENCE There was not correspondence discussed by the Board. COMMITTEE REPORTS Cable TV Committee Director Maass advised that the committee is beginning a survey on cable TV service and should have something to report at one of the April Board meetings. HIRSCHDALE WATER IMPROVEMENT PROJECT - STATUS OF AUDIT - CONSIDERATION OF AMENDED CONTRACT CHANGE ORDER - CONSIDERATION OF FINAL PERIODIC PAY REQUEST It was noted that Mr. Lowell sent a letter to Dan Cook on March 8, . 1989 asking for additional information. Dan Cook then wrote to the District asking for copies of minutes and for some direction about how to proceed with Mr. Lowell 's request. He was informed by the Chairman to respond to Mr. Lowell 's letter with brief succinct answers so that the Board can make informed decisions to close out the project. As yet, Mr. Lowell has received nothing from Mr. Cook Civil Engineer Hyde advised that Mr. Cook has prepared a corrected version of Change Order No. 7 for the Board' s consideration. it incorporates extra work orders, additional surface restoration and speed bumps (actually drainage diversion) . Mr. Hyde explained that the Brunson' s drainage diversion was removed during construction and had to be restored. There was some discussion as to whether this should be a cost borne by Joe Suter rather than the District. Mr. Cook alleges that this drainage problem was discussed at a Board meeting; however, Mr. Holzmeister remembers it being talked about at a public committee meeting. Directors Sutton and white asked to be copied with the related bill. Mr. Hyde noted that on March 13 and 14 he and a representative from Cook Associates measured the paving area at Hirschdale. Joe Suter was present on Tuesday. The measurements total 15, 329 square feet of Type A surface restoration. Suter Construction has already been paid for 8 , 880 square feet of paving. Change Order No. 7 ® originally asked for payment of 8 , 692 square feet of additional paving. District measurements show that payment for only 6, 449 square feet of paving is still due Suter, so he asked Mr. Cook to 3 revise the area on Change Order No. 7 to reflect the amount found in the field. Discussion ensued about the type of back fill called for in the easement agreement with Tony Rivara and the type actually used. Relating to the pay estimate, Mr. Hyde advised that there are items that should be resolved before a final payment is made and all the retainage is released - the well pump has a leaky foot valve and there is a question about the pavement thickness. Also mentioned was the fact that the motor that was furnished with the well pump does not meet the specifications for the project. It meets the horsepower, RPM and service factor specifications and will work in the application for which it was installed, but it does not possess the specified insulation or operate at the specified efficiency. Mr. Hyde said that he has discussed the situation with Eric Sandel, the design electrical engineer. Mr. Sandel confirmed that his own inspection indicates the motor does not meet the specifications. He said he did not review the contractor's submittal on the motor, nor did he approve the provision of the motor. He said he informed Mr. Cook that the motor was deficient, but apparently no action to correct the matter was undertaken. It appears that the contractor might have informed the engineer in his submittal that he proposed to furnish this type of motor and evidently Cook Associates approved the proposal. It was Mr. Hyde's conclusion that the motor provided will perform satisfactorily and that the difference between it and the specified motor are not great enough to warrant pursuing replacement. Director Maass said perhaps a public hearing should be held at which all the people involved are present. He suggested using a court reporter so that a verbatim transcript could be readily available. Mr. Hyde recommended reviewing the audit being prepared by Terry Lowell prior to such a meeting. Director Sutton said she thinks the questions raised in Andy Hyde's memo of March 17 (copy attached) should go to Mr. Cook via Terry Lowell. The Board agreed. Counsel Phelps advised that the hearing requested by Joe Suter will be before the arbitration board on May 11 and 12 in his office. Manager Holzmeister requested that the potential litigation with Joe Suter be discussed further during closed session. CONSIDERATION OF RESOLUTION RATIFYING DECISION TO PURCHASE FmHA LOANS AND DESIGNATING ACCOUNTS FROM WHICH FUNDS WILL BE DRAWN The Board reviewed the draft resolution and agreed to change "Tahoe . Donner Upgrade Fund" to "Tahoe Donner water system funds. " Thereafter, Director Corbett moved that the Board adopt Resolution No. 8907 authorizing the purchase of Farmers Home Administration 4 loans by means of an internal loan. Director White seconded the • motion. ROLL CALL: all Directors, aye. SO RESOLVED REVIEW OF UNIFORM COST ACCOUNTING ORDINANCE AND POSSIBLE DIRECTION Mr. Holzmeister noted that the proposed ordinance is a follow-up to the resolution adopted by the Board in February 1988. The resolution and ordinance implement the bidding procedures authorized by the Uniform Construction Cost Accounting Act. The Act, the resolution and the ordinance allow the District to perform more work with District employees, and allow the use of an informal bidding procedure for projects whose cost is between $15, 000 and $50, 000. The Act requires implementation of tighter cost accounting procedures, but it streamlines the costs of constructing new projects. Counsel Phelps said he'd had no response from the Commission regarding the inconsistency in the code he pointed out and felt comfortable with implementing the procedures. Mr. Holzmeister answered questions posed by the Board. After some discussion, the Chairman directed that a public hearing be set for the second meeting in April to consider adopting the ordinance, and that the matter be placed on the April 3 agenda for further discussion. . CONSIDERATION OF AMENDMENT TO DISTRICT PENSION PLAN VESTING SCHEDULE Manager Holzmeister reported that he met and conferred with the IBEW representative and discussed the need to amend the pension plan vesting schedule. He reviewed the current schedule, Board suggestion and staff suggestion. Finance Supervisor Colburn explained the new ERISA requirements. Several questions were answered, then Director Corbett moved that the Board accept staff's recommendation revising the pension plan vesting schedule as follows: one year, 10%; two years, 20% ; three years, 30%; four years, 40% ; five years, 60%; six years, 80% ; seven years, 100%. ROLL CALL: Aguera, aye; Corbett, aye; Sutton, yes, reluctantly, she stated; White, aye; Maass, yes, with reservations, he said. SO MOVED. CONSIDERATION OF RICHARD BURGE'S REQUEST TO EXTEND DATE OF CLOSING ON 1.9 ACRES TO JUNE 1, 1989 Mr. Holzmeister advised that the original agreement with Mr. Burge requires a May 12 , 1989 closing on the 1.9 acre parcel. He has asked for an extension until June 1, 1989, and Mr. Holzmeister recommended that his request be granted. He noted Mr. Burge has been moving his project through the approval process quickly and . appears to have the momentum to see it through to a successful conclusion. Director Aguera moved, and Director Corbett seconded, that the 5 closing for the 1. 9 acre parcel be extended until June 1, 1989 as • requested by Richard Burge. All Directors, aye, by voice vote. SO MOVED. RESOLUTION AUTHORIZING SMALL DISPLAY ADVERTISING CONTRACT WITH THE SIERRA SUN For the record, Director Corbett stated that he writes a column for the Sierra Sun, but has no involvement with its management or decisions. Director Aguera moved, and Director White seconded, that the Board adopt Resolution NO. 8908 authorizing the execution of an annual display advertising contract with the Sierra Sun. ROLL CALL: all Directors, aye. SO RESOLVED. REVIEW OF CABLE BIDS AND POSSIBLE AWARDS Electrical Engineer Buckhouse advised that he examined the bids for wire and cable opened on March 16. He recommended that the Schedule A bid from Wesco be declared as non-responsive. The dollar amount as written was 57 . 00/M with the third digit whited out. Conversations with Wesco indicate the bid should read 579 . 00/M. Mr. Buckhouse recommended that awards be given to the lowest • responsible bidders with the exception of Schedule D. The low bid for Schedule D requires a minimum order of 20, 000 feet. The District's requirement for 1989 is only 3, 000 feet over present inventory. Because of this, he is recommending award of Schedule D to the second low bidder. Questions posed by Director Sutton were answered. The Board agreed with the Engineer' s recommendations and Director Corbett moved that Schedule A be awarded to General Electric Supply for $8,795. 88, Schedule B to Western States Electric for $8,892 , Schedule C to General Electric Supply for $2, 413. 62, and Schedule D to Wedco, Inc. for $7, 560; Director White seconded the motion. ROLL CALL: all Directors, aye. SO MOVED. DISCUSSION AND POSSIBLE ACTION ON PROVIDING INSURANCE FOR MEMBERS OF THE BOARD OF DIRECTORS As to whether or not the District may provide health insurance benefits to its Directors in addition to the $400 per month compensation authorized by the Public Utilities Code, Counsel Phelps has concluded that it may. However, he said, it is probable that such benefits would be taxed by the Internal Revenue Service as income to the Directors. As yet the carrier has not informed the District whether or not it will provide insurance to the Directors. The Chairman asked the Finance Supervisor to advise of the insurance cost, and put the matter over to the next meeting. 6 • CLOSED SESSION At 9 : 35 P.M. , the Board adjourned to closed session for the purpose of discussing the Suter arbitration in accordance with Government Code Section 54956. 9 (a) . RETURN TO PUBLIC SESSION The meeting was returned to public session at 10:40 P.M. The Chairman advised the Board discussed a personnel matter and a legal problem. No action was taken. ADJOURNMENT There being no further business before the Board, Director Aguera moved, and Director white seconded, that the meeting be adjourned at 10:41 P.M. SO MOVED by consensus. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jam A. Maass, President , Prepared by x r -dam Susan M. Craig, Deputy District Clerk smc •