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HomeMy WebLinkAbout1989-07-17 Min - Board REGULAR MEETING . July 17, 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. by President Maass in the TDPUD Board Room. ROLL CALL: Directors Aguera, Corbett, Sutton, White and Maass were present. EMPLOYEES PRESENT: Debi Black, Mary Chapman, Sue Felce, Peter Holzmeister, Andy Hyde and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps. OTHERS PRESENT: Among those present in the audience were Ron and Virginia Legg, Charlie White, Bob and Christina Mortensen, Tony and Mary Rivara, John Minnis, Terry Garcia, Mr. and Mrs. Greg Lamb, Mike Garcia, Gary Tompkins, Lorraine Curtis and Mr. Blakely. APPROVAL OF MINUTES Counsel Phelps suggested changes to the draft minutes of June 5, 1989 . Thereafter, Director White moved, and Director Corbett seconded, that the Secretary be directed to prepare the minutes of June 5 in final form as corrected. All Directors, aye, by voice vote. SO MOVED. Director White moved that the Secretary be directed to prepare the minutes of June 19, 1989 in final form as written; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. STATEMENT OF GENERAL FUND AND BILLS FOR APPROVAL Director White noted that two items, the bills from Big D International and from Dinter Engineering, are listed as specific agenda items and should not have been included with the other bills on the list for consideration. After several questions were answered, Director Corbett moved that the bills be approved with the exclusion of the Big D and Dinter bills, which will be considered later in the meeting; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. MANAGERIS REPORT - POSSIBLE DIRECTION Water quality report Manager Holzmeister reported that the District has experienced no bacterial problems through the month of June. In addition to the routine coliform testing, the State Department of Health Services took the first quarter sample from the new Hirschdale Well in May. ® The results were negative, no organics were detected in the water. Discussion of billing error 1 An error in the bills sent to 24 commercial accounts during the past year was recently discovered. Large power customers were underbilled in the amount of $183,481.52 . The problem occurred last July when the demand charge in the rate file was changed on the computer from $10. 61 per kilowatt of demand to $ . 61 per kilowatt of demand on readings over the minimum demand. Staff has not been able to determine exactly how the error occurred, but has concluded it happened sometime between July 13 and July 27, 1988. Since the discovery, the file has been secured and several monthly procedures have been implemented to prevent an error like this from going undetected. Counsel Phelps noted that the affected customers, in his opinion, have a legal obligation to pay as long as the District can establish that $10. 61 per kilowatt of demand on readings over the minimum demand is the correct rate. The Office Supervisor has prepared a letter of apology to each of the customers which she will send along with a bill for the amount due. An optional payment schedule has been arranged for the customers' convenience. Financial statements Mr. Holzmeister advised that financial statements for the District through the month of May 1989 were provided in the Board meeting packets. Soil contamination clean-up The Manager noted that he has received a proposal from SEA to help resolve the soil contamination clean-up at a cost of $27, 285. He suggested staying with SEA through the submission of the plan to Lahontan for their approval, then securing a proposal from HydroSearch to see if the work can be done at a lessor expense. Director Sutton said that what the Board authorized last December was a letter to Lahontan saying the District would monitor the situation but wouldn't assume any liability for any alleged contamination. Regarding other proposals to see if the work can be done at a lessor expense, she said she didn't think it would be fair to only approach HydroSearch; that Roy Hampson and perhaps Terry Lowell should be contacted as well. Director Maass questioned whether the District would be liable for contamination clean-up since the State of California, Department of Agriculture owned the land originally and installed the tank. It was mentioned that there was previously a gas station where Fire House #2 is now (across the street at the east end of the District complex) , and that the tanks were not properly abandoned. Director Sutton suggested that the District do nothing until Lahontan provides a response to the District' s February 7 , 1989 letter wherein it was stated that the PUD believes it has corrected the 2 problem that occurred on its property and mentions that other ® properties could now be the source of contamination. After some discussion, the Board, by consensus, directed the Manager to request written response from the Water Quality Control Board, Lahontan Region, concerning the District' s advice of February 7, 1989 that other sources may be responsible for the alleged contamination. PUBLIC HEARING - HIRSCHDALE WATER SYSTEM IMPROVEMENTS - DISCUSSION OF COST ALLOCATION AMONG BENEFITTING PROPERTIES AND POSSIBLE DIRECTION - REVIEW AND APPROVAL OF APPLICATION FOR SERVICE FORM - RESOLUTION AUTHORIZING DISTRICT TO FILE LIENS WITH COUNTY OF NEVADA - CONSIDERATION OF COOK ASSOCIATES' BILLING The Chairman advised that the residents of Hirschdale each received a detailed packet presenting the water system project history and the allocation options. A copy of that material has been attached to these minutes for reference. Civil Engineer Hyde explained that, traditionally, benefitting property owners pay for the public facility improvements that benefit their properties. The legal basis for assessing costs to benefitting properties is found in the Improvement Act of 1911 and the Municipal Improvement Act of 1913 . He said the PUD is proposing to assess the project costs in excess of the grant, a total of $92 , 519 . 97, to benefitting properties. The parcels to be included in the assessment are shown on Exhibit 2 of the attached material. Two different methods are presented on Exhibits 3 and 4 . The standard District formula of allocating costs is shown in Exhibit 3 . This method divides the total project cost into two portions, domestic use and fire protection. The cost of the facilities that serve domestic needs is 1/3 of the total cost and the remainder of the cost, 2/3 of the whole, is the cost associated with fire protection. The domestic costs are allocated to each parcel on the basis of front footage to the water mains installed adjacent to each parcel. The fire protection costs are allocated to each parcel on the basis of area of each parcel. In either case, the total frontage or acreage of all the parcels is calculated and percentage of cost paid by each parcel is equal to the percentage of frontage or acreage that each parcel bears on the total. The total assessment for each parcel is the sum of the domestic and fire protection costs. The dwelling unit/zoning method of allocating costs is shown in Exhibit 4. This method allocates costs based upon the number of dwelling units that could be constructed upon each parcel according to the zoning established by Nevada County. Most parcels in Hirschdale are zoned FR-40, Forest and Recreation, one dwelling per 40 acres, which means that all existing parcels zoned FR-40 can support a maximum of one unit. A few parcels in Hirschdale are zoned R2 - 15, 500. This zoning allows one dwelling unit per 15, 500 square feet of gross area. 3 ® Mr. Hyde summarized the construction costs and amount to be assessed and went over the map of the Hirschdale area as defined by the County Assessor. President Maass opened the public hearing at 7:55 P.M. He noted the District received written comment from R. H. Fehrt, owner of AP#48-120-16, stating that he would prefer the District allocate costs per the standard formula as shown on Exhibit 3 . Greg Lamb, AP#48-110-13, said he would like the allocation to be made per dwelling unit/zoning. He also advised that his lot cannot . He said it be divided into four lots according to the County. should have been re-zoned to R-1 at the time he purchased it. Mike Garcia, AP#48-110-10, said he prefers the cost allocation shown in Exhibit 4 . He said he would be in favor of all residents paying an equal amount if there was agreement that only one dwelling be built on each parcel. . . .Mr. Garcia stated he would be willing to pay more for preserving the quality of the area and limiting growth. Mr. Blakely, AP#48-100-06, said he prefers the allocation shown on Exhibit 4 . Lorraine Curtis, AP#48-110-03 , stated she is in favor of the allocation set forth on Exhibit 3 . Bruce Waltrip, AP#48- 100-07, spoke with Mr. Hyde earlier and advised he is in favor of . Exhibit 4 . John Minnis, AP#48-120-17, said he is very disappointed in how the District is handling the $92, 000 cost over-run and thought the project could have been managed much more efficiently. He stated he is in favor of all residents paying an equal allocation. Gary Thompkins, AP#48-100-03 , said he agrees with Mr. Minnis. He said he feels the District mismanaged the project which resulted in cost over-runs. Mr. Thompkins works for a well driller and said he thinks some money could have been saved if the project was handled differently. He was in favor of Exhibit 4 and also said if Mr. Rivara and Mr. Lamb only built one dwelling on each of their lots he would be willing to pay extra. Mr. Lamb said he is planning to build a single family home on his parcel and would be willing to sign an affidavit to that effect which could be recorded. Mr. Rivara advised that there is a zone change pending on AP#48- 110-11; it will be divided into two lots. He said he would also be willing to sign an affidavit stating there would be only one service for each parcel. A strong majority of Hirschdale residents present then indicated that they would accept equal assessments of approximately $2 , 151 ® if Mr. Lamb and Mr. Rivara would restrict development of their lots as they had offered to do. 4 I! ® The public hearing was closed at 8:47 P.M. Director Maass moved, and Director Corbett seconded, that the Board approve the Hirschdale water system cost allocation per dwelling unit/zoning. Total cost is $92, 519.97 ; cost for each DUE is $2 , 151. 62 . With respect to Lots 11, 39 and 40, the Lambs and Rivaras are to sign agreements that they will execute a legal covenant to be recorded with Nevada County indicating there will be only one water service for Lot 40 and two each for Lots 11 and 39, and indicating their intent to have the parcels rezoned. Exhibit 4 is to be redone showing the proper allocations to each property owner. ROLL CALL: all Directors, aye. SO MOVED. Director Maass moved, and Director Corbett seconded, that an appropriate resolution be prepared for Board consideration at the August 7 meeting showing the correct cost allocation, interest and payment schedule for each property owner for the Hirschdale water system. Formation of a district for the purpose of placing assessments on the parcels for collection by the County is to be pursued. All Directors, aye, by voice vote. SO MOVED. The Board reviewed the proposed supplemental application form for service. Thereafter, Director White moved, and Director Corbett seconded, that the Board approve the Hirschdale supplemental application form with the following amendments: the addition of a disclaimer in Section 4 (a) , notation that the District is to inspect all connections to the new system. All Directors, aye, by voice vote. SO MOVED. Mr. Hyde noted he has reviewed the Cook Associates ' most recent billing and, as far as he can tell, it is essentially correct. The billings can be summarized as follows: basic services, $45, 178. 82 ; inspection, $25, 879.73 ; audit preparation, $4, 310. He said that Cook's earlier billing was $10, 026. 62 higher. After some discussion, Director Maass moved that the Board approve payment to Cook Associates in the amount of $26,431. 29 (the amount owed less the $4, 310 charge for audit preparation) ;seconded by Director Corbett. ROLL CALL: all Directors, aye. SO MOVED. The Manager was directed to ask Mr. Cook to justify this billing for non-engineering service. The Board will consider the resolution authorizing the District to file liens with the County of Nevada at the next regular meeting. DONNER LAKE UTILITY COMPANY ACQUISITION - REVIEW OF PROCESS - AUTHORIZATION TO SEND LETTER AND QUESTIONNAIRE Manager Holzmeister advised that the Water Committee discussed the possible acquisition of Donner Lake Utility Company on June 30, 1989. It was the committee' s concern that the PUD make sure the • property owners and residents of Donner Lake know the full impact of the PUD's acquiring the system and that they support such action. To that end the committee developed a process for 5 consideration by the Board. Also provided for review was a draft ® letter and questionnaire which would be sent to all Donner Lake property owners and residents. Several suggestions were made to amend the list of procedures to be followed and, thereafter, Director Corbett moved that the Board approve the list of tasks; seconded by Director White. All Directors, aye, by voice vote. Susan Craig, property owner at Donner Lake, noted that she has received excellent service from Donner Lake Utility and indicated she would not be receptive to paying assessments in order for the TDPUD to acquire and improve the system. Ms. Craig suggested that affected property owners be advised, prior to the questionnaire being sent, if the present owner is being required by the State to make improvements to the system for which the customers will be assessed. If this is the case, she said, her opinion may change since the PUD has the ability to apply for grants and low interest loans which may make the cost to the property owner less than if a private company does the improvements. The Manager stated that Mr. Williams, owner of DLUC, has not advised of any such requirements. Charlie White, Donner Lake resident, said he would be educating the affected owners via the Property Owners ' newsletter. The draft letter and questionnaire were reviewed and discussed. . Several changes were decided upon. Director Sutton suggested that an ad be placed in the Sierra Sun advising the customers that Donner Lake Utility has approached the PUD and offered to sell the company and advising of the questionnaire that will be sent. The Board agreed with mailing the letter and with Director Sutton' s suggestion. (A copy of the amended list, letter and questionnaire has been attached to these minutes for reference and is to be provided to each Director. ) RESOLUTION IMPLEMENTING AND FIXING ELECTRIC AND WATER STANDBY CHARGES PURSUANT TO ORDINANCE NO 7501 FOR THE FISCAL YEAR 1989-90 Director Aguera moved, and Director Corbett seconded, that the Board adopt Resolution No. 8917 implementing and fixing electric and water standby charges pursuant to Ordinance No. 7501 for the fiscal year 1989-90. ROLL CALL: all Directors, aye. SO RESOLVED. RESOLUTION FIXING AND PLACING ELECTRIC AND WATER STANDBY CHARGES ON DISTRICT TAX ROLL FOR COLLECTION BY THE COUNTIES OF PLACER AND NEVADA Director Aguera moved, and Director Corbett seconded, that the Board adopt Resolution No. 8918 fixing and placing electric and water standby charges on District tax roll for collection by the Counties of Placer and Nevada. ROLL CALL: all Directors, aye. SO RESOLVED. • CONSIDERATION OF RECLOSER BIDS AND POSSIBLE AWARD 6 In his memo, Mr. Buckhouse noted that only one bid was received for providing two reclosers for use in the Truckee Substation. The price is within the budgeted amount, and Mr. Buckhouse recommended the bid be awarded to Cooper Power Systems in the amount of $26, 192 . Director Corbett moved, and Director White seconded, that the recloser bid be awarded to Cooper Power Systems for $26, 192 . All Directors, aye, by voice vote. SO MOVED. RESOLUTION AUTHORIZING CALL FOR BIDS FOR GARAGE HEATERS Mr. Holzmeister noted that there has been a problem with ice building up in the garages the past two winters. The proposed heaters will solve the problem and make a safer work place for the employees. Dinter Engineering prepared plans and specifications for the installation; copies were provided to the Board. Director Corbett moved that the Board approve payment of the Dinter Engineering bill in the amount of $1,960; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. Director Corbett moved, and Director White seconded, that the Board adopt Resolution No. 8919 authorizing the call for bids for garage heaters. ROLL CALL: all Directors, aye. SO RESOLVED. • AUTHORIZATION TO ACCEPT AND PAY FOR DUMP TRUCK The dump truck was delivered to the District yard on June 30, 1989 . Civil Engineer Hyde inspected the truck and determined that it complies with the specifications. He recommended accepting the truck and authorizing payment. Director Aguera moved, and Director Corbett seconded, that the Board approve payment of the Big D International bill in the amount of $70,723 . 48 for the dump truck. All Directors, aye. SO MOVED. CONSIDERATION OF NEVADA COUNTY DEPARTMENT OF TRANSPORTATION'S REQUEST TO USE WEST PARKING AREA FOR COLLECTION OF HAZARDOUS WASTE The County Department of Transportation requested use of the District's west parking area for collection of hazardous waste on Saturday, August 26, 1989. The County has named the District as an additional insured and provided a certificate of coverage. Director White moved, and Director Corbett seconded, that the Board approve Nevada County's request to use the west parking area for collection of hazardous waste on August 26, 1989 . All Directors, aye, by voice vote. SO MOVED. PUBLIC INPUT • There was no public input. CORRESPONDENCE 7 John Corbett's letter re East South River Street water line The Chairman acknowledged receipt of the letter from Director Corbett this date advising that he is assisting Grace Robertson in locating the underground pipes in her trailer park. Director Maass noted a possible conflict on the part of Director Corbett, and Director Corbett assured him he is helping Mrs. Robertson as an individual, not in his capacity as a Board member. There was some discussion, and Director Sutton moved that Director Corbett be directed to report any developments to the Manager who, in turn, is to report to the Board; seconded by Director White. All Directors, aye, by voice vote. SO MOVED COMMITTEE REPORTS Mr. Holzmeister reported that the Water Committee met on June 29, 1989 and discussed Donner Lake Utility Company and Hirschdale. Both items were covered earlier in the meeting. CLOSED SESSION The Board adjourned to closed session at 10:50 P.M. for the purpose of discussing personnel matters. . RETURN TO PUBLIC SESSION The meeting was returned to public session at 11: 28 P.M. No direction was given or action taken as a result of closed session. ADJOURNMENT There being no further business before the Board, Director Aguera moved that the meeting be adjourned at 11:29 P.M. ; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. TRUCKEE DONNER PUBLIC UTILITY DISTRICT J es A. Maass, Pr sident Prepared by w ._ Susan M. Craig, Deputy District Cle smc • 8