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HomeMy WebLinkAbout1989-08-21 Min - Board REGULAR MEETING • August 21, 1989 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at 7 : 01 P.M. by Chairman Maass in the TDPUD Board Room. ROLL CALL: Directors John Corbett, Pat Sutton, Karen White and Jim Maass were present. Director Joe Aguera was expected. EMPLOYEES PRESENT: Debi Black, Tom Buckhouse, Mary Chapman, Andy Hyde, Peter Holzmeister and Susan Craig were present. CONSULTANTS PRESENT: Counsel John M. Phelps. OTHERS PRESENT: Rick Ingerbritzen, Scott Brandos and John Minnis. APPROVAL OF MINUTES Director White presented written corrections to the draft minutes of August 7 and Director Sutton also suggested several changes. Thereafter, Director Corbett moved that the Secretary be directed to prepare the minutes of August 7, 1989 in final form as corrected; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. BILLS FOR BOARD APPROVAL Director Joe Aguera arrived at this point, 7: 04 P.M. Director White moved, and Director Sutton seconded, that the bills presented for consideration be approved for payment. All Directors, aye, by voice vote. SO MOVED. MANAGER'S REPORT Storm damage Andy Hyde reported that the recent lightning storm on August 7 and 8 ruined one important motor and severely disrupted the water system controls. Two strikes near the Northside tank and well site caused the motor to the well to burn out. It was out of operation from 10: 00 A.M. until about 6: 00 P.M. Because there was a spare motor in the warehouse, staff was able to bring the well back on line quickly. The loss of the well drastically reduced the capacity to produce water, but the wet weather discouraged irrigation and other outside uses, so water demand dropped considerably until the hot dry weather returned later in the week. The crews, Mr. Hyde noted, performed well during the crises. Despite losing much of the automatic control system and the Northside well, the District was able to provide uninterrupted ® water service. He is investigating system protection; lightning arrestors can be installed on the incoming power lines to each station, surge protection can be installed on control circuits, and 1 the transducer piping can be changed from metal to plastic to . better insulate them from lightning strikes. Director Sutton asked that a precise report showing the amount of damage be provided at the next Board meeting. Water quality report Mr. Holzmeister said there are no water quality problems; the report through the month of July was included in the Board packet. NCPA annual meeting The Manager advised that the Northern California Power Agency annual meeting will take place in Santa Barbara from September 27 through September 29. He said it is a very good meeting each year; it relates directly to issues the District will face as members of NCPA. This year the meeting is of special interest because the PUD will become their newest member. He encouraged all Directors to attend and asked them to advise if they are interested. Discussion of meetings with Fire District Peter Holzmeister reported that he has met with Andy Hyde, Debi Black and Joe Copeland, Don Delaney and Jimmy Osburn of the Truckee Fire Protection District (DELETE - have met) two times to discuss the PUD's fire flow facilities fees. The basis for the fees was presented and explained, current construction costs for source, storage, pumping and distribution facilities were discussed and examples of the application of fees were provided. Mr. Holzmeister noted that the meetings were very beneficial ; Fire District staff indicated they have a more clear understanding of the PUD's basis for the fee and agreed that a fee must be charged in order to provide the facilities. Another meeting will be scheduled soon. Hirschdale water system Responding to Director White' s question, Mr. Hyde noted that staff checked the Brunson residence in Hirschdale and found they were connected to the District's water system. A disconnect was made and the meter was pulled. Director Sutton stated she thinks that requests made by Directors should be responded to automatically at the following Board meeting. Director Sutton asked if the residents of Hirschdale have been notified that Lamb and Rivara are not being required to go through the planning process. Mr. Hyde noted that the Lamb and Rivara agreements have just been signed this date; letters will be going out soon. CORRESPONDENCE - POSSIBLE DIRECTION 2 Dan Cooley's questionnaire Chairman Maass reported that the Manager has responded to Mr. Cooley's request by providing a complete copy of the 1989 budget. It provides the information he asked for as well as additional data pertaining to the District's operations. Scott Brandos, also a candidate for a seat on the Board, was provided with a copy of the budget, too. 1.9 acre parcel With respect to Richard Burge's letter to Supervisor Tucker dated August 11, 1989, Mr. Holzmeister said Mr. Burge plans to continue with the project. In order to do so, Mr. Burge is working with the County to acquire the parcel to the east. He'd like to develop his full plan rather than a scaled-down version. Director Sutton said she is offended by Mr. Burge 's statement, "I believe the original plan should remain in place, because if the land is left in the County's hands it will remain as it is today - - an eyesore functioning primarily as a drainage ditch with dead trees, large dead grass and a trash collection site. " She questioned why the County would consider selling land the District dedicated to them for drainage purposes. She also questioned whether or not the land was owned by the District or the County. PUBLIC INPUT Hirschdale water system John Minnis, Hirschdale resident, appeared at the public hearing several meetings ago and said he was disappointed with certain aspects of the Hirschdale project. In retrospect, he thought it sounded as though he was disappointed in the PUD and he came to apologize to the Board. Mr. Minnis stated that his disappointment lies with the work of the engineering consultant and contractor; he noted the District has worked hard for the people in Hirschdale and he is very appreciative. COMMITTEE REPORTS Finance Committee Director White's report to the Finance Committee and the Board concerning the presentation made by Kidder Peabody and Ken Callan Associates on August 9, 1989 regarding defined benefit plans, corporate deferred benefit plans and Nova was included in the packet. She noted that the Nova information was provided to the Board this date. Board Room Remodeling Committee 3 Director Maass said he hopes to have a report on remodeling the Board dias at the next meeting. CONSIDERATION OF POLICY ESTABLISHING DISTRICT OVERHEAD RATES Mr. Holzmeister reported that the Finance Committee has met and discussed the overhead rates that should be adopted for use in the District, and the material is now ready for action by the Board. There are three uses for overhead rates, Manager Holzmeister explained. They are used to account for the full cost of performing projects with staff labor to comply with the requirements of the Uniform Construction Cost Accounting Act. Overhead rates are used to properly allocate costs when work orders are closed and costs are distributed among capital, operations and maintenance. Overhead rates are used to calculate invoices sent to parties for whom work has been done. He noted that some of the costs associated with doing a job are called direct costs; these are wages paid. Other costs are called indirect, because they are a portion of the fringe benefits, cost to purchase and store wire, cost of a vehicle used, and administrative costs. An overhead rate is a method used to allocate costs that are indirectly associated with doing a job. They should be recognized as a part of the job, but are not easily measurable, except through a formula. By not accounting for the indirect costs, the installed . cost of the job is understated and the rate payers of the District end up paying for them as operating costs. By properly accounting for indirect costs there is a better allocation of costs to benefitting parties. The overhead rates being proposed for use in 1989 to allocate indirect costs are as follows: 1. Labor overhead 43 . 7% of direct labor 2 . Government wide overhead 22 . 0% of full labor 3 . Stores overhead 53 . 0% of material 4 . Vehicle overhead - a) Construction trucks $43 . 91 per hour b) Backhoes 42. 47 per hour c) Medium utility trucks 1. 12 per mile d) Light utility trucks . 58 per mile Mr. Holzmeister explained how the proposal differs from the single overhead rate of 82% applied to direct labor in the past, and gave two examples comparing the 82% allocation and the proposed allocation. He noted the proposed rates were calculated by the District Finance Supervisor and reviewed by the District's auditor, Touche Ross. Mr. Colburn used the accounting procedures manual issued by the State entitled, COST ACCOUNTING POLICIES AND PROCEDURES MANUAL OF THE CALIFORNIA UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING COMMISSION, and Touche Ross prepared a report which ® concludes that the method used conforms with that manual . Director Sutton noted that the law allows certain exemptions having 4 to do with informal bidding, using the District's own work force, and raising the amount of a project the District may perform without going to bid. Mr. Holzmeister said the District will be required to comply with the accounting principles set forth by the Uniform Public Construction Cost Accounting Commission. The draft resolution was reviewed and several amendments were requested. The revised document will be considered by the Board at the next regular meeting. REVIEW OF BIDS AND AWARD OF CONTRACT FOR INSTALLING GARAGE HEATERS By memo, District Engineer Buckhouse advised that he reviewed the bids to provide radiant heaters for the electric and water garages and recommended award be given to the low bidder, D & D Plumbing of Sparks, Nevada in the amount of $23, 363 . Director White asked if the District investigates to see if all bidders are licensed contractors and whether any complaints have been filed against them. It was noted that the bidders are all licensed and were recommended by Dinter Engineering (who prepared the plans and specifications) . Director Corbett moved, and Director White seconded, that the Board award the bid for radiant garage heaters to D & D Plumbing in the amount of $23, 363 . All Directors, aye, by voice vote. SO MOVED. . DISCUSSION OF DISTRICT BILLING PROCEDURE Mr. Holzmeister noted that, at the last meeting, several questions were raised concerning consumer deposits and trip charges for delivering 48-hour notices to delinquent account customers. Office Supervisor Mary Chapman reviewed with the Board in detail the billing and collection schedule. The total consumption owed if disconnected under ideal circumstances is 78 days. She noted that collecting a two-month deposit is rarely sufficient to cover the usage outstanding on the account by the time it is disconnected for non-payment. Mrs. Chapman noted that the $15 delinquent account processing fee was implemented several years ago to help offset the costs incurred by the District in processing delinquent accounts. She explained the 48-hour notice procedure which includes the following steps: print final notices; check for unposted payments; review final notice worksheet; contact customers who have never received a final notice before; personally deliver notice; if payment is not received, clerk prepares a door knocker telling customer what to do to have power restored - it is left with customer or on door when disconnect is performed. Director Sutton expressed concern that only first-time delinquent ® customers were called. She noted that the law calls for personal contact; she was not sure that knocking on the door and leaving a door knocker if the customer did not answer was sufficient. She 5 also suggested that the District absorb the cost of delivering the notices. Director Maass said this would not be fair; the District should protect the consumer that pays on time. Director White noted that it probably costs the PUD more than $15 to deliver the notices. Director Sutton said this trip fee is not part of the fee schedule adopted by the Board since it was approved by motion only. Counsel Phelps noted he thought the fee was approved prior to passage of the law which requires that all fees be adopted by resolution or ordinance requiring a public hearing. Chairman Maass asked him to check into the matter. Upon review of the bill, Director Corbett noticed that it says only "usage" and does not refer to kilowatt hours. Director White suggested that the computer print "KWH" at the usage heading. RESOLUTION ACCEPTING EASEMENT AND AUTHORIZATION TO QUIT CLAIM BLANKET EASEMENT - TRAILHOUSE SQUARE (OAKWOOD PROPERTIES) - AP#18- 500-13 After consideration, Director Corbett moved that the Board adopt Resolution No. 8923 indicating the District' s intent to execute a quitclaim deed in return for specific easements to Nevada County Assessor's Parcel No. 18-500-13 ; seconded by Director White. ROLL CALL: Aguera, Corbett, Sutton, White and Maass, aye. SO RESOLVED. . QUARTERLY BUDGET REPORT Mr. Holzmeister reviewed the electric and water budget reports for the period ending June 30, 1989 and explained that the net operating revenues for both electric and water are within 1.40 of what was budgeted. He said most of the larger categories, such as revenues and purchased power, are divided based upon an historical analysis. Most of the other accounts are based on 1/12 of the annual budget as there was no historical data on which to base an analysis. Several of the budget definitions were discussed. Directors Sutton and White asked if it would be beneficial to show the revenue from special districts separately rather than included with other commercial accounts. Mr. Holzmeister said this may be a good issue to address in the cost of services study. Director White asked for a report comparing capital expenditures to the capital budget at the next meeting. Director Sutton questioned whether standby fees collected by the County on behalf of the District from unimproved property owners should be included in the same account category with the fire sprinkler standby charge that is billed to commercial accounts. Mr. Holzmeister said he would discuss this with the Finance supervisor. Mr. Holzmeister noted that the District's financial picture is 6 good. As a better history of monthly expenses is obtained, there • will be more accurate quarterly reports. FUTURE AGENDA ITEMS Director White asked that two items be included on the next regular meeting agenda: a status report on the Colorado/Ute bankruptcy case as it affects utility districts and discussion of whether or not the PUD should pay for spouses and dates at the annual employee party. CLOSED SESSION The Board adjourned to closed session at 8: 50 P.M. in accordance with Government Code Section 54957 to discuss personnel matters. RETURN TO PUBLIC SESSION The meeting was returned to public session at 11: 15 P.M. Chairman Maass noted that no action was taken. ADJOURNMENT There being no further business before the Board, Director Aguera moved that the meeting be adjourned at 11: 16 P.M. ; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. ® TRUCKEE DONNER PUBLIC UTILITY DISTRICT J es A. Maass, Pr dent t t Prepared c Susan M. Craig, Deputy District Cler z smc 7