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HomeMy WebLinkAbout1989-04-17 Min - Board REGULAR MEETING April 17, 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: 05 P.M. in the TDPUD Board Room. ROLL CALL: Directors Aguera, Corbett, Sutton, White and Maass were present. EMPLOYEES PRESENT: Debi Black, Paul Colburn, Mary Chapman, Andy Hyde, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: John Phelps, Dan Cook, Terry Lowell, Ruth Laidlaw Jones. OTHERS PRESENT: Among those present in the audience were Tony Rivara, Mike Hartwell, Adria Aslanian, Matt Rusanoff, Arnold Schmidt, Max Williams, Shawn Van Enov and Grace Robertson. APPROVAL OF MINUTES Director Aguera proposed corrections to the draft minutes of February 21, 1989 and, after review, Director Corbett moved that the minutes be approved as corrected by Director Aguera. Director White seconded the motion. All Directors, aye, by voice vote. SO MOVED. Director Corbett moved, and Director White seconded, that the minutes of March 6, 1989 be approved as corrected. All Directors, aye, by voice vote. SO MOVED. Director Sutton suggested several changes to the draft minutes of March 20, 1989, and Director White pointed out a typographical error. Director Corbett moved, and Director Sutton seconded, that the Secretary be directed to prepare the minutes of March 20 in final form as corrected. All Directors, aye, by voice vote. SO MOVED. BILLS FOR BOARD APPROVAL Director Sutton noted that reimbursement in the amount of $404 . 39 for her attendance at the Special District Management Institute had been included with her monthly compensation. Staff was asked to make certain the reimbursement was not listed as taxable income. After reviewing the bills, Director Sutton moved that the bills presented for consideration be approved for payment; Director Corbett seconded the motion. All Directors, aye, by voice vote. MANAGER'S REPORT ® water quality report Manager Holzmeister advised that the District encountered no 1 bacteriological problems in the system during March, and provided the Board with an updated water quality report. Summary of FmHA loan purchase Mr. Holzmeister reported that the Farmers Home Administration was paid in full on March 30, 1989 for the District's outstanding loans per Resolution No. 8907 . Finance Supervisor Colburn provided a written summary of the transaction which noted that the $231, 660.47 gain would be reflected in the 1989 financial statements. Escheat of funds Memoranda provided by the Finance Supervisor and Counsel Phelps described the process to be followed in order to retain funds represented by unprocessed checks. After a brief review, the Board directed that a resolution be prepared for consideration at the next regular meeting. Status of bills from Cook Associates An updated bill has not yet been presented to the District, Mr. Holzmeister reported. Use of District Board Room Mr. Holzmeister provided a list of nine parties who expressed an interest in using the Board room, but declined when the $75 fee was quoted. The two groups that use the building periodically are the County Supervisors and the School Board. They are large groups that cause parking problems; however, the PUD may be the only facility in Truckee large enough to accommodate them. Mr. Holzmeister said that when large groups use the building during working hours, it has an adverse impact on District business; the $1, 650 collected for use of the room during 1988 does not make it a lucrative proposition. The Board agreed that staff should not be inconvenienced by others using the room. The recent installation of a pay phone in the lobby and possibility of putting in a pay copier were discussed. The Board asked for a copy of the policy governing use of the Board room, and will consider the matter at a future meeting. PUBLIC INPUT There was no public input. CORRESPONDENCE Grace Robertson letter of March 26, 1989 Grace Robertson noted she has requested information having to do with the East South River Street water line and related costs that will be charged by the District from the District on numerous 2 occasions, but not received it. The Manager advised that this . information has been provided to Mrs. Robertson several times. Her request for an estimate for modification of internal lines owned by her is something she will have to contract for personally, he said, as the District does not offer this service. The Board reviewed and approved the draft letter responding to Mrs. Robertson's letter of March 26, 1989 regarding the water line on East South River Street. Mrs. Robertson said she doesn't agree with the District' s answers to her questions and would like to present a proposal at the next meeting. After brief discussion, the Chairman asked Mrs. Robertson to present her written proposal by April 27 for placement on the May 1, 1989 meeting agenda. Robert Aivasian letter of April 10, 1989 The Board reviewed the Office Supervisor's response to Mr. Aivasian's complaint having to do with the increased service charge. The letter explained the notice procedure followed by the District prior to increasing rates or charges, and apologized to him for not communicating the news to him when he called for a reconnection of service. Since he was not told of the increase, Mrs. Chapman recommended crediting his account for $25, the amount of the increase. • Director Corbett moved that the letter to Mr. Aivasian be approved; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. Director Sutton asked that Counsel research and advise the Board if notices of public hearings must be published a certain number of days prior to the hearing. The Board approved her request. Placer Foothills Consolidated Fire Protection District letter of March 27, 1989 Mr. Holzmeister advised that Placer Foothills Consolidated Fire Protection District is attempting to secure special district representation on Placer County LAFCo. After some discussion, it was determined that since the PUD' s lead agency is Nevada rather than Placer County, the District has no authority to make such a request of Placer County. The Chairman directed the Manager to respond appropriately to the Fire District. COMMITTEE REPORTS Report on cable television survey; possible direction Director Maass provided survey information received from six cable systems in northern California. Total costs of service, including • converters, ranged from a low of $14 .95 in Ukiah to a high of $23 . 12 in Truckee. 3 Director Sutton informed the audience that it is within the District's authority to provide cable television service. There was some discussion, and the Chairman asked the Secretary to obtain information about the cable service to Squaw Valley and Tahoe City. The matter is to be placed on the next regular meeting agenda for further discussion and possible action. PUBLIC HEARING - CONSIDERATION AND POSSIBLE ADOPTION OF AN ORDINANCE IMPLEMENTING THE UNIFORM CONSTRUCTION COST ACCOUNTING ACT The public hearing was opened at 8 : 08 P.M. There were no comments or questions from the audience, and Director Corbett moved that the hearing be closed at 8: 09 P.M. ; seconded by Director Aguera. All Directors, aye, by voice vote. SO MOVED. The Manager noted that changes suggested by the Board previously had been incorporated into the ordinance. Director Corbett moved, and Director White seconded, that the Board adopt Ordinance No. 8902 implementing the Uniform Construction Cost Accounting Act. ROLL CALL: all Directors, aye. SO ORDAINED. CONSIDERATION OF GENERAL LIABILITY INSURANCE PROPOSALS; POSSIBLE DIRECTION Office Supervisor Chapman introduced Ruth Laidlaw Jones, the insurance consultant retained by the District. Mrs. Chapman advised that the District received only one complete proposal for the renewal of the property and general liability insurance. It was from the current carrier, Reliance Insurance Company. Reliance quoted various levels of deductibles, giving the District a choice of the amount of risk it wants to cover. She presented a cost summary for Board review. It was noted that the District's current coverage has expired. Director Aguera moved, and Director Corbett seconded, that the Board approve an extension of the existing insurance policy through May 1, 1989, and that appropriate payment be made. All Directors, aye, by voice vote. SO MOVED. After some discussion, Director Corbett moved that the Board accept the insurance proposal from Reliance Insurance Company (through Frank B. Hall) to take effect on May 1, 1989 at a total cost of $161, 546, less the amount payable to NRECA for D & O coverage. Director White seconded the motion. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF ACCEPTING 1988 AUDIT Director Corbett moved that the Board accept the audit for 1988 prepared by Touche Ross; seconded by Director White. ROLL CALL: all Directors, aye. Director Sutton voted "yes, " but stated she 4 has reservations regarding the Farmers Home Administration bond • purchase being included in the 1988 audit report. She said that otherwise she thinks the audit is good. Director White advised that the audit has been presented exactly as recommended by both Generally Accepted Accounting Principles and Generally Accepted Auditing Standards. SO MOVED. PROCLAMATION DECLARING WEER OF MAY 1 - 5 AS WATER AWARENESS WEER; REVIEW OF WATER AWARENESS WEEK PROGRAM Mrs. Chapman advised that staff has planned several activities to take place during Water Awareness Week - presentations for preschool through eighth grade classes, an evening presentation to the community focusing on subjects relating to Truckee' s water system and supply, and a presentation to all the employees to enhance their knowledge about the water utility and the District's responsibilities to the community. Engineering Technician Black noted that at the evening presentation water quality, wise use of water, chlorination, effects of the drought, the existing distribution system, maintenance, the backflow program, metering, public relations, budget/funding and the safety program will be discussed. Director Sutton asked that staffs comments on chlorination be consistent with the Board' s view on the subject, and suggested also discussing alternative methods to chlorination. . The Board reviewed the proclamation declaring the week of May 1 through 5 as Water Awareness Week. After review, Director Corbett moved that the proclamation be adopted by the Board as corrected; Director White seconded the motion. ROLL CALL: all Directors, aye. SO PROCLAIMED. CONSIDERATION OF RESOLUTION ADOPTING CERTAIN OVERHEADS TO BE USED IN CONJUNCTION WITH THE UNIFORM CONSTRUCTION COST ACCOUNTING ORDINANCE After a brief review of the draft, Director Sutton asked for a copy of the guidelines used to prepare the resolution. The Chairman put the matter over to the next regular meeting. CONSIDERATION OF A RESOLUTION AUTHORIZING PURCHASE OF A COMPUTER DISK DRIVE Finance Supervisor Colburn advised that funds for the purchase of an additional 200 MB disk drive for the IBM system 36 were included in the 1989 budget. Director Corbett moved, and Director White seconded, that the Board adopt Resolution No. 8910 directing that competitive bidding be dispensed with in connection with the District' s purchase of computer hardware. ROLL CALL: all Directors, aye. SO RESOLVED. 40 POSSIBLE AUTHORIZATION FOR ENGINEERING WORK RELATING TO CERTAIN BUILDING IMPROVEMENTS 5 Mr. Holzmeister said that when the District complex was constructed certain items were deleted in order to bring the cost of the building down. Several of those items are now becoming a problem. Heaters in the vehicle garages were deleted. During the past two winters there has been an ice build-up on the garage floors causing the doors to stick and causing safety problems. Heaters can be installed at an approximate cost of $25, 000. Dinter Engineering has submitted a proposal to develop biddable specifications for the heaters. Motorized door openers on six large roll-up doors were deleted. The doors are heavy and have caused some strained shoulders and backs. The installation would cost approximately $6, 000. Air conditioning was deleted. Mr. Holzmeister said that last summer during the month-long heat wave, the offices were oppressively hot. Dinter Engineering staff advised that a swamp cooler type of system can be installed for approximately $25, 000. After some discussion, Director Sutton moved that the Manager be directed to retain Dinter Engineering to develop biddable specifications for the garage heaters, to go to bid on motorized garage door openers, and to obtain proposals on alternative methods of cooling the District complex. Director White seconded the motion. All Directors, aye, by voice vote. SO MOVED. HIRSCHDALE WATER IMPROVEMENT PROJECT - AUTHORIZATION TO FILE LETTER OF INTENT TO APPLY FOR GRANT FOR CONSTRUCTION OF A WATER TREATMENT PLANT IN HIRSCHDALE - REVIEW OF AUDIT - CONSIDERATION OF CONTRACT CHANGE ORDERS NO. 8 AND 9 - CONSIDERATION OF PROGRESS PAY REQUEST - STATUS REPORT PREPARED BY DISTRICT ENGINEER Ms. Black noted that the District received an invitation from the State Department of Health Services to submit a formal application for funding to construct a water treatment plant at Hirschdale. The District would be under no obligation to accept the funds. The first step in the funding process is to submit a letter of intent to file an application and to pass a resolution authorizing the General Manager to sign and file the application for funding. Director Corbett moved, and Director Sutton seconded, that the Board authorize the Manager to submit a letter of intent to the Department of Health Services for funding to construct a water treatment plant at Hirschdale. All Directors, aye, by voice vote. SO MOVED. Director Corbett moved that the Board adopt Resolution No. 8911 authorizing application to the Department of Water Resources for funding to assure that the Hirschdale Water System meets minimum • safe drinking water standards. The motion was seconded by Director Sutton. ROLL CALL: all Directors, aye. SO RESOLVED. 6 Dan Cook described in detail the 71 linear feet of drainage diversion constructed as part of the Hirschdale improvements. He indicated replacement of the diversion was not a part of the original contract. The cost, at $4 . 00 per linear foot, is $284 . After some discussion, Director Corbett moved that the Board approve Contract Change Order No. 9 in the amount of $284 ; seconded by Director Sutton. ROLL CALL: all Directors, aye. SO MOVED. Mr. Cook advised the Board that Contract Change Order No. 8 was rejected by the Board and is now pending arbitration. He asked that the change order for incorporating Extra Work Orders Number 4 , 5 and 6 into the contract and adding 6, 449 square feet of surface restoration to the contract be addressed as Contract Change Order No. 7, Revision. For the purpose of clarity, the Chairman asked that Item 1 on Contract Change Order No. 7 , Revised, the extra work orders in the amount of $1, 528. 64, be presented separately as Contract Change Order No. 4, Supplement No. 1. All parties, Mr. Cook said, have agreed to the amount of additional square footage of Type A surface restoration listed in Contract Change Order No. 7, Revision. Director Corbett moved, and Director White seconded, that the Board approve Joe Suter' s Contract Change Order No. 7, Revision in the amount of $25, 796. ROLL CALL: all Directors, aye. SO MOVED. SConsideration of the progress pay estimate was put over until after discussion of Terry Lowell ' s audit of the construction project. The information used in determining the primary well site, Mr. Cook said, was a reanalysis of the literature that had been prepared related to the general geological area. Specific data points included the development of the Glenshire/Devonshire Mutual Water Company source of supplies and the Hydrosearch reports of groundwater potentials in the Truckee community. Also reviewed and analyzed were the preliminary analysis of water supply potentials for the Raley's project that surrounds the Hirschdale community. In addition, a review of the geological formations and the yields from the existing private wells was a factor in Cook's decision- making process. As to why an alternate well site was not selected prior to well drilling, Mr. Cook noted that the alternate well drilling site was anticipated and provided for in the bid documents. The dry hole at Site A was abandoned on November 18, 1987. Authorization to drill at Site B was tabled at the November 30, 1987 meeting. The driller had scheduled a major overhaul of his drill rig and the unit would be out of service from December 21 until January 6, 1988 . Authorization to construct the test hole at the alternative site was provided on December 14 , 1987 . The work was completed December 19, concluding Schedule A. At this time, the State of California restructured the construction sequence that was contained in the original plans, specifications and bidding documents. The State required that Schedule B be completed prior 7 to the authorization of work on Schedule C, the distribution work. • Schedules A and B were subcontract work, whereas Schedule C was work that the prime contractor would be accomplishing. The restructuring of work provided the prime contractor the opportunity to request and receive the $18,000 additional compensation contained in Contract Change Order No. 3 . Regarding the access road cost, Extra Work Tags in Contract Change Orders 2 , 4 and b, Mr. Lowell said he found nothing to argue about; no duplicate payments were made. Regarding base, sand and drain rock materials from the Dearman pit, Mr. Cook noted that the Dearman materials were utilized in trench sections outside the limits of the Rivara-required Teichert materials. The District agreed to provide Rivara with Teichert granitic aggregates in the Rivara easement areas; however, Dearman materials were the principal source of aggregates for the project. He said the Dearman materials met specifications and were also used successfully in the Glenshire job performed by Joe Suter. Regarding Mr. Lowell 's question as to the authority Mr. Cook believed was vested with him to order increases in the quantities of work without a contract change order, Mr. Cook said that public agencies are required to issue unit price contracts with certain exceptions. A unit price contract is one where the cost of the individual unit's work is specified in the bid and in the contract . between the construction company and the agency. The quantities of work will increase or decrease depending on the specific site conditions encountered during the completion of the project. The contract documents specifically provide for comparing the contractor's prices on the basis of the estimated quantities contained in a bid. The purpose of that comparison is to determine the lowest responsive bidder. The final contract cost is the product of the units of work as actually completed and the unit prices as contained in the construction contract. Adjustments in cost can be accomplished under a change order covering changes in the character of work or extra work where the Engineer assumes control of that portion of the project and directs the contractor to provide equipment and materials in accordance with a pre- published set of cost guidelines. Relating to continuity straps, Mr. Cook said District staff authorized their deletion; however, by the time the paperwork covering the deletion was issued by the District, the straps had already been attached to the ductile cast iron pipe at extra cost to the residents of Hirschdale. Since the straps had been deleted by the District, it was felt that the additional labor and cost associated with connecting the straps was no longer necessary and was an unnecessary expenditure of the project funds. Mr. Cook further advised that Western Nevada Supply contacted the District directly while assembling their materials quotation for all of the contractors. Western indicated that the District authorized several changes from the project bid specifications. They quoted the materials that the District was purchasing for 8 installation in the PUD water system. Western quoted materials to . the contractors in accordance with the PUD purchasing criteria and did not include the continuity straps. Regarding Joe Suter's demand on the District for $23 , 000 in price increases incurred as a result of delays beyond his control, Mr. Cook said that in-house staff reached an agreement with Mr. Suter that this demand would be reduced and fixed at $18, 000. The $18, 000 extra cost was approved by the state for inclusion in the grant and was recommended by the Water Committee to the Board. The agreed upon change order value did not reflect the contractor' s actual increased cost of $25, 388. Director Sutton disagreed that this was a Water Committee recommendation, and Director Maass said he thought the matter was discussed by the Board during closed session. Counsel Phelps noted that the District commissioned Terry Lowell to perform an audit of the Hirschdale construction and asked Mr. Lowell if he had now confirmed his earlier tentative conclusion that there is no substantial failure by Joe Suter and no duplicate payments made to him by the District. Mr. Lowell stated yes, and that in his opinion Joe Suter is entitled to be paid. Mr. Cook said sufficient funds have been retained to make necessary corrections. . Counsel advised that the arbitration hearing with Mr. Suter is scheduled for May 7 and 8. He suggested meeting and attempting to reach a compromise prior to that time. Director Maass noted that the Board may wish to discuss this matter further during closed session. CLOSED SESSION The meeting was adjourned to closed session at 11: 28 P.M. in accordance with Government Code Section 54956.9 (a) , the Suter arbitration. RETURN TO PUBLIC SESSION The Board returned to public session at 11: 55 P.M. No action was reported. ADJOURNMENT There being no further business before the Board, the meeting was adjourned by unanimous consent at 11: 56 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT J s A. Maass, P sident f Prepared bn -¢--�_� -. ' -� Susan M. Craig, Deputy District Clerk/ 9