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HomeMy WebLinkAbout1989-10-02 Min - Board REGULAR MEETING ® October 2, 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 : 10 P.M. in the TDPUD Board Room. ROLL CALL: Directors John Corbett, Pat Sutton, Karen White and James Maass were present; Director Joe Aguera was absent. EMPLOYEES PRESENT: Debi Black, Tom Buckhouse, Mary Chapman, Peter Holzmeister, Andy Hyde and Susan Craig. CONSULTANTS PRESENT: Counsel John M. Phelps. OTHERS PRESENT: Among those present in the audience were Tony Rivara, Bruce Waltrip, Bonnie Waltrip, Julie Waltrip, Simon Broadley, Veronica Frazier, Julie Bayer, and Chris Kuttel . APPROVAL OF MINUTES The draft minutes of September 18, 1989 were reviewed and several corrections were suggested by the Directors. Thereafter, Director White moved that the Secretary be directed to prepare the minutes in final form as corrected; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. STATEMENT OF GENERAL FUND AND BILLS FOR APPROVAL It was clarified that the bill from Shaffer Paving Company was for patch paving at nine locations throughout the District and for seal coating the District's access road to the Prosser Heights water storage tank. The list of bills is to be amended to show it was not Beacon Road (a County road) but the District' s road that was seal coated. Director White moved that the bills presented for consideration be approved for payment. The motion was seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. MANAGER'S REPORT Status of Truckee Substation District Engineer Buckhouse explained that, after much delay, the replacement 2500 KVA substation transformer for Truckee Substation arrived this date and will be placed in service as soon as weather permits. The regulator control that was lost during the lightning storm a few weeks ago, he said, will be installed next week putting Truckee Substation back to normal operation. Mr. Buckhouse noted that the power outage on Monday, September 25 was caused by a failed fuse; the outage on Tuesday, September 26 , occurred when a solid blade disconnect switch failed. He brought both pieces of equipment and demonstrated how they work and what 1 happens when there is a failure. The Directors expressed their pleasure at Mr. Buckhouse ' s presentation noting that it was very informative. Director Sutton asked if similar demonstrations on the basic operation of both the water and electrical systems could be conducted periodically. Report from District Counsel on purchasing Counsel Phelps noted that the Board directed him to provide a brief synopsis of the rules applicable to the District' s purchase of materials and supplies and, in particular, situations in which the District must purchase supplies through formal bidding. Mr. Phelps advised that Section 20206.4 of the Public Contract Code directs the District to determine its needs on an annual basis and then solicit formal bids through advertising. Section 20206 . 4 assumes that most District supplies will be purchased as a result of this annual bid solicitation. Section 20207.7 addresses those situations in which the District needs to buy materials randomly throughout the fiscal year; Section 20207 .7 requires that whenever the cost of any single random purchase exceeds $4, 000, the District must solicit formal bids in the same way as it does for its annual purchase of supplies. Counsel said that these code sections are poorly drafted and fairly confusing. When both code sections are read together, it is not mandatory that the District purchase all of its supplies in one mass annual solicitation of bids. After some discussion, the Chairman directed Counsel to compare the purchasing procedures required by the District to those of other special districts and municipal utility districts for review at the October 16 meeting. Financial reports Provided with the Board packet were copies of the investment report as of August 31, 1989 and the August balance sheets and income statements. The income statements were changed so that the revenues are no longer recorded as credits. Director Sutton requested an explanation regarding the spread between the water and electric investments. Director Sutton asked if the income statements could be re- formatted so that the year to date totals are easier to read. PUBLIC INPUT There was no public input. CORRESPONDENCE Letter from Jerry Blakeley dated September 25, 1989 2 Mr. Blakeley notes in his letter that he paid his total allotment in the amount of $2, 151. 63 , and does not feel he should have to pay any additional amount for establishing the Hirschdale assessment district. His letter also mentions that at the start of the water improvement project he was told that people on the old system would be connected free of charge. He says this can be verified through John Minnis' notes. Manager Holzmeister noted that it was clear from the beginning that the Hirschdale people would pay for the system. Director Sutton said John Minnis ' notes could be checked. Chairman Maass advised that this matter will be considered later in the meeting. Letter from Sally Campbell dated September 23, 1989 Mrs. Campbell makes note in her letter of the District ' s policy that water service cannot be disconnected unless electric service is also disconnected. She will be gone for several months and is requesting that the Board review the policy and allow the disconnection of water without the disconnection of electric service. She also noted that her neighbors, the Albert Armstrongs, would also like to be able to disconnect just their water service for periods they are out of the area. Mr. Holzmeister explained that water is not physically disconnected as is electricity. There is no way to close and lock off the water system unless curb stops with locks are installed. After some discussion, Chairman Maass referred this matter to the Water Committee for review and recommendation. COMMITTEE REPORTS Water Committee Ms. Black' s report on the Water Committee meeting held September 21, 1989 was included with the Director' s packets. Director Sutton asked that several items be clarified in her report, and that a copy be provided to the Secretary for attachment to these minutes. SPECIAL BUSINESS Welcome home Bruce Waltrip! President Maass read the resolution welcoming employee Bruce Waltrip home from the hospital and rehabilitation program. By unanimous vote of the Board, the resolution was adopted and presented to Bruce. HIRSCHDALE ASSESSMENT PROCEEDINGS - POSSIBLE ACTION - STATUS REPORT CONSIDERATION OF ALLOCATION OF COSTS FOR ASSESSMENT FORMATION - RESOLUTIONS INITIATING ASSESSMENT PROCEEDINGS Civil Engineer Hyde reported that 12 Hirschdale property owners 3 have applied for service and nine are now receiving service from ® the new District system. Five applicants paid in cash at the time of application, and the others have agreed to pay their allocation on the time payment plan. When the system was started up in September, there were many complaints of yellow colored water. Once the system was thoroughly flushed, the water cleared up and now the complaints have stopped. The initial indications that the water contains high amounts of iron and manganese are true. One additional constituent noticed in the well water is hydrogen sulfide. Mr. Hyde noted that it is likely all three of these compounds will be removed to some extent in the storage tank before delivery to the customers. Mr. Hyde said that all punch list items have been corrected by Joe Suter. Tony Rivara, Hirschdale resident, stated he wants the Board to be aware that there is a possibility that the red rock covering the lines will settle next Spring; if so, he'd like assurance that it will be taken care of. He noted it was not the material specified in the contract. All Hirschdale property owners were notified that the question of how to allocate the costs of forming the assessment district would be discussed at this meeting and invited to attend. The options are as follows: • 1. The formation costs could be borne by all the District's customer, i.e. , the costs would not be passed on directly to the Hirschdale owners. 2 . The formation costs could be passed on to all the Hirschdale owners equally regardless of how they have chosen to pay their allocation. 3 . The formation costs could be paid by only those Hirschdale owners who do not pay their allocation in full by some deadline established by the District. 4. A portion of the formation costs could be borne by the District and the remainder passed on to the Hirschdale owners. Mr. Hyde said he thought it was appropriate for the District to assume some of the formation costs if the District is indeed gaining valuable experience that will save money during formation of other assessment districts. He also believed it was reasonable to pass on the formation costs to those owners that do not pay their allocation by the deadline, but not to those that pay in full by the deadline. Charles Shaw, Hirschdale property owner, contacted Mr. Hyde and indicated his preference is that the formation costs be borne by . the District. Dr. Gonzales, whose wife and sister-in-law own property in Hirschdale, spoke with Mr. Hyde and said he thought the cost should be allocated equally to all 43 property owners. Note 4 was made of Mr. Blakeley's letter in which he states he has paid M his fees in full and does not feel he should be charged for formation of the assessment district. Tony Rivara, present in the audience, was in favor of the costs being divided equally among all 43 property owners. Bruce Waltrip, also present in the audience, stated he feels the assessment formation costs should be paid by those property owners who elect to pay in that manner. Mary Chapman noted it was her understanding that the Hirschdale people would pay all of the costs related to upgrading the water system that were not covered by the grant. She said that the PUD fronted all the money for construction of the water system and had other expenses caused by the residents of Hirschdale. As a rate payer of the District not living in Hirschdale, she said she doesn't feel she should pay these costs; Debi Black agreed with her. After some discussion, Director Sutton moved that the assessment proceeding costs be spread equally between all 43 property owners that are within the Hirschdale system; seconded by Director White. ROLL CALL: Aguera, absent; Corbett, Sutton and Maass, aye; White, no. SO MOVED. Director White said she would have voted yes if the people who paid in advance were not going to be charged. Director Sutton questioned whether the draft resolutions initiating the assessment proceedings must designate the Civil Engineer the Superintendent of Streets as well as District Engineer. Mr. Copeland advised Mr. Hyde this language is necessary to conform to • the way the law is written. Director Sutton asked if it is necessary to specifically list the acts that empower the District to conduct the assessment and if it is proper to say that the improvements will be acquired by the District in the resolutions. Chairman Maass directed that Mr. Copeland be asked to confirm these matters, and that a special meeting be scheduled for 3 : 30 P.M. on October 5 to consider adoption of the resolutions. Director Sutton also asked for clarification regarding the serial bonds mentioned in the resolution of intent. TAHOE DONNER WATER LINE LEAKS - AUTHORIZATION TO SEER ENGINEERING PROPOSALS TO EVALUATE PROBLEM Director Corbett moved, and Director White seconded, that proposals be requested from engineering consultants for analyzing the Tahoe Donner water leak problem. ROLL CALL: Aguera, absent; all other Directors, aye. SO MOVED. REPORT FROM GENERAL MANAGER ON ASSIGNMENT OF PERSONNEL Director Sutton stated she would like to confer with the Manager prior to discussing this item. The Chairman tabled the matter to the next meeting. CONSIDERATION OF ACCOUNTS RECEIVABLE WRITE-OFFS 5 Office Supervisor Chapman presented the current write-off list in ® the amount of $3 , 350. 39 representing all accounts that closed on December 31, 1988 and prior that still have an outstanding balance. She analyzed the accounts that made up the write-offs for the last eight years and provided a comparison with other utilities. Director Corbett moved, and Director White seconded, that the Board authorize writing off the accounts on the list dated September 27, 1989 in the amount of $3, 350. 39 . All Directors, aye, by voice vote. SO MOVED. Mrs. Chapman noted that records of written off accounts are maintained for collection should the customer ever apply for service again, and collection efforts are continued on the accounts by the credit bureau. RESOLUTION DESIGNATING OCTOBER 8-14 PUBLIC POWER WEER Director White moved that the Board adopt Resolution No. 8929 designating October 8-14 , 1989 as public power week; seconded by Director Corbett. ROLL CALL: Aguera, absent; all other Directors, aye. SO RESOLVED. REQUEST FOR ABANDONMENT OF PUBLIC UTILITY EASEMENT - BAYWEST PROPERTIES, III - APN19-300-47 • It is staff s recommendation that the District release its interest in the original easement on this parcel as the project was entirely altered. As part of the development process, the developer is dedicating easements for the project which meet current needs. Director Corbett moved that the Board abandon it' s interest in the public utility easement over APN19-300-47 as requested by Baywest Properties, III ; seconded by Director Sutton. ROLL CALL: Aguera, absent; all other Directors, aye. SO MOVED. PRESENTATION REGARDING ASSEMBLY BILL 1600 Ms. Black provided the Directors with a report introducing the requirements of Assembly Bill 1600 relating to development impact fees. Three steps are necessary to comply with AB1600: 1. Complete the master planning in order to create the basis for the capital improvements planning which is needed to justify the initial charges to the developers. 2 . Adopt a facilities impact fee ordinance which clearly defines the order the District must follow in the development process. 3 . Adopt an administrative code for the implementation and collection of facilities fees Ms. Black proposed that staff meetings be held the week of October 1 to review and edit the proposed ordinance and administrative 6 code; that the Board review the documents the week of October 8 ; ® that the Board adopt the ordinance and administrative code in October or November. She suggested a Board workshop to discuss the requirements of AB1600, the master planning, the proposed ordinance and administrative code. Chairman Maass scheduled the workshop for the special meeting on October 5, 1989. He directed that a notice of public hearing to consider the proposed ordinance and administrative code on October 16 be advertised in the October 12 issue of the Sierra Sun. RESIGNATION OF DIRECTOR KAREN WHITE Director White presented a memo stating she is resigning from the Board effective October 31, 1989 due to her acceptance of a job in Ohio. She indicated she would prepare a formal letter for the next meeting. CLOSED SESSION The Board adjourned to closed session at 9: 38 P.M. pursuant to Government Code Section 54956.9 (c) . RETURN TO PUBLIC SESSION The meeting was returned to public session at 10: 20 P.M. • ADJOURNMENT There being no further business before the Board, the meeting was adjourned by unanimous consent at 10:20 P.M. CT-RUCKEE DONNER PUBLIC UTILITY DISTRICT J es A. Maass,, Pr ident Prepared by Susan M. Craig Deputy District Clerk , smc 7