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HomeMy WebLinkAbout1989-06-19 Min - Board REGULAR MEETING . June 19, 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 Corbett, Sutton, White and Maass were present. Although Director Aguera was expected, he did not attend. EMPLOYEES PRESENT: Paul Colburn, Peter Holzmeister, Andy Hyde and Susan Craig. CONSULTANTS PRESENT: Counsel James Porter sat in for John Phelps, who was on vacation. OTHERS PRESENT: Among those present in the audience were Rick Ingebritson, Ron and Virginia Legg and Bill Austin. APPROVAL OF MINUTES Director Corbett moved, and Director White seconded, that the minutes of May 8, 1989 be approved as corrected. All Directors, aye, by voice vote. SO MOVED. Director Corbett moved that the minutes of May 15, 1989 be approved as corrected. The motion was seconded by Director White. All ® Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL Directors White and Sutton had several questions concerning the Wayne Richardson Company bill in the amount of $2 , 340 for the annual administrative service on the District's retirement plan which included preparation of accounting reports, tax reports, employee statements and actuarial procedures. Manager Holzmeister indicated he would investigate to see if the rate charged the District is comparable to other Districts. Director Sutton asked if Richardson Company provides a certification that the District is fulfilling its fiduciary obligations; she said she would like this to be a matter of record and suggested placing their annual report as a correspondence item on a future agenda. She also asked to be provided with information on how the funds are invested. Mr. Holzmeister noted that the District relies on Richardson to make sure it is in compliance with current rules; Touche Ross, in turn, audits Richardson. Director White moved, and Director Corbett seconded, that the bills presented for consideration be approved for payment. All Directors, aye, by voice vote. SO MOVED. . MANAGER'S REPORT - POSSIBLE DIRECTION District recruitment procedures 1 • During the last Board meeting, Mr. Holzmeister said, a question was raised regarding the PUD' s employee recruitment and hiring practices. Office Supervisor Chapman, who coordinates that process, provided a memorandum explaining the procedure which was included in the Board packet. Director Sutton said she was pleased with the report as it gives a good overview of the way hiring is being handled. She asked that Mrs. Chapman be thanked for preparing the memo. Status of Recreation and Park District land acquisition Steve Randall, Manager of the Park District, informed the Manager that the District is no longer pursuing the acquisition of the Donner Lake property. However, Mr. Holzmeister said, if the land should become available for purchase, they would like to again approach the PUD for assistance. Water quality report The Manager advised that the District has incurred no samples containing coliform bacteria; the water quality report for May is perfect. Insurance summary At the June 5 Board meeting a question was raised as to why the District allocates insurance costs equally to the water and electric operations rather than on the 80/20 split. Mrs. Chapman prepared an insurance coverage summary which suggests that there is some rationale for a 50/50 split. Director Sutton stated she wants some explanation of the property value for the Electric Department as she can't draw any conclusions from the report. Mr. Holzmeister said he is concerned that the 80/20 split on operating costs is not an accurate reflection of District business, and he asked to present data to the Board at a future meeting to re-evaluate the allocation of costs before starting to prepare the 1990 budget. The Chairman suggested that Mr. Holzmeister review the 80/20 and 50/50 splits in detail and present his findings to the Finance Committee prior to bringing the matter back to the Board. Special District Finance seminar Mr. Holzmeister noted that he and Finance Supervisor Colburn attended a finance seminar sponsored by the California Special Districts Association. The seminar discussed the organization of . the finance function, with special emphasis on the treasury function; special district debt, with emphasis on assessment districts; capital improvement budgeting and facilities fees; 2 investment of cash; and data processing. He will go into greater • detail with the Finance Committee, he said. After attending one seminar of assessment district procedures, Mr. Holzmeister noted, he believes that when assessing costs to benefitting properties, the cost must be in proportion to benefit. He indicated his concern that any allocation of Hirschdale costs equally to all properties (as suggested by Tony Rivara) may violate state law. PUBLIC INPUT There was no public input. CORRESPONDENCE - POSSIBLE DIRECTION Letter from McDonough, Holland & Allen re TDPUD vs. Board of Supervisors, County of Nevada Director Maass noted receipt of a copy of the Order granting Plaintiff' s Motion for Summary Judgment and Denying Defendant's Motion for Partial Summary Judgment; Judgment; Notice of Entry of Judgment; and Amended Memorandum of Costs in the groundwater lawsuit. Letter from Director Maass to B. J. Smith • Director Corbett thanked Director Maass for writing to acknowledge Mrs. Smith and her class for decorating the PUD entry during the year. He suggested that the Board ratify the letter. Director Sutton did not feel this was necessary, as it is simply a ministerial act. COMMITTEE REPORTS There were no committee reports. HIRSCHDALE WATER SYSTEM IMPROVEMENTS - POSSIBLE DIRECTION: RELEASE OF RETAINAGE TO JOE SUTER CONSTRUCTION - DISCUSSION OF COST ALLOCATION AMONG BENEFITTING PROPERTIES - COOK ASSOCIATES' BILLING Civil Engineer Hyde reported that Joe Suter has completed the last two items on the punch list. The pre-lube system on the well pump is working satisfactorily and the pot hole patches are in place. Mr. Hyde spoke with Mr. Suter about extending the warranty period on the patches until next spring and he has agreed to the extension. Counsel Phelps prepared a draft letter to Mr. Suter' s attorney which directs him to release the $6, 000 retainage. Mr. Hyde suggested modifying the letter to mention the extended warranty for the pavement patches. Counsel Porter recommended that the District • request a confirming statement regarding the extended warranty be signed by Mr. Suter or his attorney as a condition of releasing the retained funds. 3 • Director White moved that the Board approve the retainage release subject to receipt of a signed statement concerning the extended warranty on the pavement patches. The motion was seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. The District has satisfied all the State Health Department conditions and can start up the Hirschdale water system and permit customers to hook up. The issue of how to allocate costs, Mr. Hyde said, is not yet settled. Construction season is in full swing and conditions are ideal for performing the service line work. Some residents are quite anxious to hook up. Mr. Hyde suggested allowing immediate hook ups for those property owners willing to sign an agreement. Counsel Phelps has prepared language which could be added to the service application, and a copy was provided in the Board packets. At the present time, Mr. Hyde noted, Tony Rivara is polling the Hirschdale property owners to determine if they would be willing to divide the costs equally rather than pay based on frontage, square footage, zoning and fire protection as is the District' s policy. As noted earlier, Mr. Holzmeister learned at a recent conference that an equal allocation may be against state law. Ron and Virginia Legg, Hirschdale property owners, stated they did not feel an equal allocation would be fair. • The Chairman noted that the Legg property has been reported as already hooked into the District' s system. Mr. Legg said the service line is in place, but to his knowledge the valve has not been turned. Because there has been a private spring providing service to this residence, the Chairman asked staff to make sure there is no cross-connection problem. Several questions regarding the cost allocation were posed by the Leggs and another property owner, Bill Austin. Counsel Porter suggested that staff prepare a map clearly showing the lots, parcels and improvements thereto. Mrs. Legg asked the Manager to provide her with copies of the regulations allowing the PUD to assess the fees related to the Hirschdale improvements. After some discussion, the Chairman directed that a public hearing be scheduled for 7: 30 P.M. on July 17 , 1989 . The hearing is to be advertised in the Sierra Sun and all Hirschdale property owners are to be notified by mail and provided with packets of information two weeks prior to the hearing. The packets are to include maps showing which parcels will be assessed and the proposed assessment. There are to be two options, the Chairman noted: equal allocations to all property owners and allocations based upon benefit in accordance with District policy. He asked that the Water Committee review the packet prior to its distribution. • Regarding Cook Associates ' bill, Mr. Hyde advised that the District has received 17 pages of detail from Cook Associates covering 321 different services performed between March 1986 and April 1989 . 4 He said he had not had time to review the material thoroughly, but • the latest statement now bears a total due of $31, 401. 29 rather than $40, 767 .91, which was the balance due shown on the previous billing. Mr. Hyde noted he would like to review the bill before the Board considers approval since the construction activities did not have a ceiling on cost. Director Sutton asked Mr. Hyde to determine if the inspector for the Hirschdale project was also putting in time on the Glenshire sewer project (for the Truckee Sanitary District) . The Manager said Cook's bill contains charges for time involved in responding to Terrance Lowell 's audit questions. The Chairman directed that these costs be borne by the District rather than by the residents of Hirschdale. CONSIDERATION OF RECOMMENDATIONS FROM THE FINANCE COMMITTEE REGARDING THE FOLLOWING: SUBMITTING STAFF-PREPARED OVERHEAD RATES TO TOUCHE-ROSS FOR REVIEW AND COMMENT - REQUESTING PROPOSALS FROM MANAGEMENT CONSULTANTS TO EVALUATE STAFF-PROPOSED PURCHASING AND WAREHOUSING FUNCTIONS The Finance Committee is currently reviewing two matters and is recommending that advice be sought in developing District policy. The Finance Supervisor has prepared labor, material and vehicle overhead rates to be used as part of the uniform construction cost • accounting policy. The Finance Committee recommends submitting the overhead rates, along with Mr. Colburn's method of calculation and the applicable state rules, to Touche Ross for review. Mr. Colburn estimated the cost to be less than $2, 000. Director Corbett moved, and Director Sutton seconded, that the matter be submitted to Touche Ross for review and recommendation. All Directors, aye, by voice vote. SO MOVED. Staff has suggested that the purchasing and warehousing function of the District be simplified and decentralized. The Finance Committee sees merit in staffs proposal, but is concerned with maintaining proper controls over purchasing and warehousing. The Finance Committee is recommending that a consultant be employed to help develop procedures that balance the benefits of decentralization with the need for control. Director Corbett moved that the Manager be authorized to obtain quotes from consultants for helping to develop such a procedure. The motion was seconded by Director Sutton. All Directors, aye, by voice vote. SO MOVED. WATER QUALITY MONITORING OF GROUNDWATER IN MARTIS VALLEY - POSSIBLE DIRECTION Ms. Black's memo of today' s date advised that TTSA routinely samples 16 of its monitoring wells at various intervals. Three wells are analyzed by TTSA on a monthly basis in order to monitor the phosphates travelling towards the Truckee River. Lahontan requires the monthly sampling of five wells and an additional bi- annual sampling of three wells to assess the affect of the plant operation on groundwater; five are monitored on a quarterly basis 5 for the TDPUD. During 1984/85 TTSA sampled the five District • points on a monthly basis. Results were so consistent that the sampling period was reduced to a quarterly basis in 1986. Ms. Black accompanied a laboratory employee from TTSA on June 15 on his sampling rounds and collected duplicate samples at each of the District sampling points. Each of the five samples were delivered to Cranmer Laboratories in Grass Valley. The lab was asked to analyze the samples for total dissolved solids and chloride and one of the samples for total coliform. The contaminant levels for total dissolved solids were less than the constituents recommended under the State of California secondary drinking water standards; no coliform organisms were detected in the water sample. Director Sutton asked that tests be performed by District staff on a quarterly basis for the next year, and twice a year - in the spring and fall - the following year. The Board indicated its agreement. DISCUSSION OF POSTPONING OR CANCELLING THE REGULAR BOARD MEETING OF JULY 3 The regular meeting of July 3 , 1989 was cancelled due to the lack of a quorum being available to attend. It was noted that, if necessary, a special meeting may be called by three Board members. • ADJOURNMENT There being no further business before the Board, Director Corbett moved that the meeting be adjourned at 8 : 30 P.M. ; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By Jam ' A. Maass, President Prepared by - -• y Susan M. Craig, Deputy District Cler smc 6