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HomeMy WebLinkAbout1989-10-16 Min - Board REGULAR MEETING • October 16, 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 : 02 P.M. in the TDPUD Board Room. ROLL CALL: Directors Joe Aguera, John Corbett, Pat Sutton and Jim Maass were present. Director White was absent. EMPLOYEES PRESENT: Debi Black, Tom Buckhouse, Paul Colburn, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John M. Phelps. OTHERS PRESENT: Among those present in the audience were Veronica Frazier, Doug Kennedy, Rick Ingebitsen, William Von Tagen, Charles White, Jim Miller, Joanne Meschery and Scott Brandos. APPROVAL OF MINUTES Director Corbett noted a typographical error on page two and thereafter moved that the minutes of September 18, 1989 be approved as corrected; seconded by Director Sutton. All Directors , aye, by voice vote. SO MOVED. • Director Corbett moved, and Director Sutton seconded the motion, that the Secretary be directed to prepare the minutes of October 2 , 1989 in final form. All Directors, aye, by voice vote. SO MOVED. Director Corbett moved that the Secretary be directed to prepare the minutes of October 5, 1989 in final form; Director Sutton seconded the motion. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL Mr. Holzmeister confirmed that the bill from General Electric Systems in the amount of $60, 478 . 93 for the 2500 KVA transformer was a bid item. Also, he advised that the bill from Glenn Reiter & Associates for consulting analysis on the inventory and warehouse is a partial payment. Their written report should be received soon. Director Corbett moved, and Director Aguera seconded, that the bills presented for consideration be approved for payment. All Directors, aye, by voice vote. SO MOVED. MANAGER'S REPORT Advertising of stale dated checks Manager Holzmeister noted that, in accordance with Resolution No. 8912 , the District is in the process of advertising a small list of stale dated checks that have not been processed by the payee. 1 • If no claim is received by the District prior to November 24 , 1989 , the funds will become the property of the PUD. Mr. Colburn advised, however, that if a legitimate claim is made after that date a new check will be issued. Water quality report Mr. Holzmeister referred to the water quality report for the month of September. He said it shows that three portions tested positive for coliform in the Truckee system. Immediate retesting was done and no further problems were found. Staff is continuing to monitor the system; there has been no reoccurrence. Engineering Technician Black explained how and where the samples are taken and tested. Director Sutton asked that future reports include a more detailed report of the positive bacterial count and how the percentage positive is derived. Snow removal bid awards The District recently requested bids for snow removal for the 1989- 90 season. Only one bid was received. Berst Enterprises responded for providing snow removal at the office and warehouse, Martis Valley Substation, Truckee, Substation, Northside and Southside complexes and Airport well pump station. There were no bids for Donner Lake and Tahoe Donner Substations. • After some discussion, it was decided that Sohn Berst would be asked to also plow Donner Lake and Tahoe Donner; if he is unable to take on this extra plowing, the District will negotiate with the contractors who performed the work last year or with others . Update on Proposition 55 Engineering Technician Black reported that the following steps have been completed with respect to Proposition 55: 1. PUD submits pre-application. 2 . Department of Water Resources reviews pre-application and forwards to State Department of Health for comment. 3 . District submits final application to Department of Water Resources. 4 . Department of Water Resources reviews and solicits comments and approval from State Department of Health. 5. PUD provides detailed project report. 6. State Department of Health prepares summary report based upon PUD project report. 7 . State Department of Health summary report goes to Department of Water Resources and becomes a public 2 document. S. The State Department of Health sends a letter of certification to the Department of Water Resources indicating approval of the project. 9 . The Department of Water Resources reviews and approves the District's ability to repay a loan. Ms. Black noted that, in November and December of 1989 , the Department of Water Resources will prepare the contract for funding and a public hearing will be held to allow for comments. It will be possible to commence construction in the Spring of 1990 . Inter-fund loan payment In accordance with Resolution No. 8907, the first payment on the inter-fund loan from the Tahoe Donner Water System Fund for the purchase of the FmHA bonds was due September 1, 1989 . The total amount of the transfer is $17, 000 of which $9, 974 . 25 represents interest computed at 9. 0620. The balance of the loan after this payment is $257, 134 . 67. Report by Counsel on purchasing Counsel Phelps explained the results of the survey of bidding requirements for the purchase of supplies he conducted at the request of the Board. Seven other special districts, small counties that do not employe a purchasing agent and small counties that do employ a purchasing agent were included in the survey. He noted it does not include bidding requirements for construction of public improvements. It seems that the TDPUD is the only agency that requires a deposit to accompany a bid, and asks the bidder to provide a surety bond. It is one of two entities encouraged to make annual purchases. A copy of the survey has been attached for reference. The possibility of contacting the California Municipal Utilities Association for assistance in updating the pertinent laws was briefly discussed and Chairman Maass directed that the matter be placed on the next meeting agenda for discussion and possible action. Pension plan actuarial report The Board packet contained a copy of the actuarial valuation for the plan year ending December 31, 1989 . After some discussion, the Board directed that Wayne Richardson Company be asked to prepare a table showing the difference in benefits for retirement at age 55 with 10 years service, age 62 and age 65 for review at the second meeting in either November or December. PUBLIC INPUT Declaration of possible conflict 3 Debi Black, staff member of the PUD, presented a letter regarding the wall Street Properties commercial development. It states that she is working with the developers of the proposed project relating to the provision of water and power and, as an individual and homeowner in the vicinity of the proposed project, she intends to comment at a public hearing to be held regarding the traffic impact of the project. She goes on to say she is not opposed to the project merely concerned about the potential impact the project may have on roads in her area. She notes that her concern as a homeowner will in no way affect her work with the developer on behalf of the District. The Board thanked her for declaring this possible conflict and agreed that it does not appear to be a problem. CORRESPONDENCE - POSSIBLE DIRECTION James & Janice Rhode' s letter of October 3, 1989 Electrical Engineer Tom Buckhouse advised that Mr. Rhode approached him several weeks ago regarding obtaining power to his parcel . As a result, he inspected the subdivision of which Mr. Rhode ' s property is a part. The subdivision was created by deed prior to the 1972 establishment of County subdivision requirements and, as such, has no roads, utilities or other improvements. Mr. Rhode 's property is approximately 2 , 600 feet from the main line of Truckee Substation Feeder #5. The estimated cost to construct the extension is $26, 000. There are no roads existing in the subdivision, and District policy requires facilities to be built along roadways rather than cross-country. Mr. Rhode's proposal to provide service to his property would further compound the phase balance problem which exists in Prosser Lakeview Estates, add to the District's operational problems and increas line losses. Mr. Buckhouse said he has been approached a half dozen times in the past two years by parties interested in obtaining electrical service to this subdivision. All have been discouraged by the magnitude of the cost to build the required line extension. Several options to provide power to the subdivision have been identified, Mr. Buckhouse noted. He suggested the matter be referred to the Electric Committee for discussion, as some deviation to the District' s established policy may be warranted. Directors Sutton and Aguera volunteered to work with staff on this matter, and the Chairman appointed them as an ad hoc committee for this purpose. COMMITTEE REPORTS There were no committee reports. 4 PUBLIC HEARING CONSIDERATION OF PROPOSED FACILITIES IMPACT FEE ORDINANCE AND ADMINISTRATIVE CODE FOR THE IMPLEMENTATION AND COLLECTION OF FACILITIES FEES; POSSIBLE DIRECTION - CONTINUANCE OF THE PUBLIC HEARING TO NOVEMBER 6, 1989 - AUTHORIZATION TO CONTINUE WITH SYSTEM MASTER PLANNING - POSSIBLE REFERRAL OF DRAFT ORDINANCE AND ADMINISTRATIVE CODE TO COMMITTEE Chairman Maass noted that, as a result of the workshop on AB 1600 held on October 5, no action on the proposed facilities impact fee ordinance and administrative code for the implementation and collection of facilities fees will be taken this evening; the public hearing will be continued to the next regular meeting. Ms. Black presented the recommendations made at the workshop meetings 1. Refer the propooed ordinance and administrative code to the Water and Electric Committees for refinement. 2 . Authorize Sauers Engineering to complete the master planning for the Gateway Zone of Benefit. 3 . Consider requesting a proposal from R. W. Beck for the master planning of the electrical system, following basic Is growth and existing system data collection by Sauers Engineering. 4 . Schedule the public hearing in order to consider the adoption of the Facilities Fee Ordinance and Administrative Code for the implementation and collection of facilities fees. After some discussion, the Chairman directed that the Board review the proposed ordinance and administrative code at the special meeting scheduled for October 30. Director Corbett moved that the Board authorize Sauers Engineering to complete the master planning for the Gateway Zone of Benefit; Director Aguera seconded the motion. All Directors, aye, by voice vote. SO MOVED. Chairman Maass directed that Manager Holzmeister prepare a request for proposals for the master planning of the electrical system. Director Corbett moved that the public hearing be continued to 7 : 30 P.M. on November 6, 1989 ; seconded by Director Sutton. All Directors, aye, by voice vote. SO MOVED. The appropriate advertisement is to be placed in the Sierra Sun. REVIEW OF DONNER LAKE UTILITY COMPANY SURVEY; POSSIBLE DIRECTION Chairman Maass noted that, over the years, various people have 5 approached the Board asking the PUD to acquire and improve the Donner Lake Utility Company water system. He said 666 individuals responded to the recent survey conducted by the District; 543 were generally satisfied with their water service and 118 were dissatisfied. Charlie White, Donner Lake homeowner, said he was disheartened to see that the satisfied customers outweighed the dissatisfied customers. He asked that the Board consider the severity of the comments of the dissatisfied customers. Bill Von Tagen, Weeks Tract, Donner Lake, said he didn't receive a questionnaire but noted he is unhappy with Donner Lake service. The Chairman outlined the procedure for forming an assessment District. It was noted that public hearings and input would be necessary. Director Sutton said that, ordinarily, 51% of the homeowners can stop assessment district formation; however, if health is an issue, the Health Department can overrule such a decision. Director Corbett said he thinks there are uninformed people at Donner Lake, and indicated there might be demands by the Health Department to upgrade the system. He thought that if the Donner Lake home owners people realized this they might want to look into the possibile benefits of PUD acquisition. Mr. White said he and Marge Adkerson intended to inform the public of the situation before the questionnaire was sent out but had not had the time to do so. Director Sutton stated she feels the problem at Donner Lake is substantial and suggested calling a public hearing for further comment. Director Maass noted that all those who were sent questionnaires should be advised of the results of the survey and invited to attend a public hearing on the matter. Mr. Von Tagen suggested that a public hearing be held between June and September and that an estimated cost per lot be available at that time. He also recommended direct contact with Barbara Westphal, Secretary of the Property Owners Association. With a public hearing to discuss the water quality and service at Donner Lake tentatively planned for the summer of 1990, Charles White indicated he would begin the education process with the homeowners. Susan Craig, Donner Lake homeowner, noted she lives on the northeast side of the lake, has good water service and is not interested in paying to improve the water service at the west end of the lake. Chairman Maass remanded the matter back to the Water Committee for further review. 6 REVIEW OF 1990 INTERDEPARTMENTAL ALLOCATION FACTORS Finance Supervisor Paul Colburn advised that the District currently splits certain unassigned fixed costs between electric and water funds on an 80/20 ratio. That ratio was established in 1987 based on revenues. A more accurate method, one that reflects the District' s operation, would use labor costs on the number of customers as the allocation factor. This results in an electric and water ratio of 60/40. With respect to allocating the debt service on the building, if the space in the building is analyzed, a 50/50 ratio is appropriate, Mr. Colburn noted. Mr. Colburn said that staff is in the process of preparing the 1990 budget. To assist in allocating unassigned costs, he recommended that the Board adopt a 50/50 ratio for building debt and a ratio of 60% to electric and 40% to water for administrative and general expenses. There was some discussion and Director Sutton asked for more back up on the conclusions reached by the Finance Supervisor; she thought a 70/30 split might be more fair. Manager Holzmeister said he would prepare an analysis using a formula based on the number of customers and revenues weighing 50/50 and come back to the Board with calculations. AUTHORIZATION TO TRANSFER FUNDS BETWEEN GENERAL AND RESTRICTED FUNDS Mr. Holzmeister advised that the 1989 budget contains a line item for the future replacement of the telemetry system. It is planned to accumulate funds over a period of five years and then make a major investment in telemetry upgrade. He requested that the Board transfer $20, 000 from the water general fund to a telemetry restricted fund. So moved by Director Aguera; seconded by Director Corbett. All Directors, aye, by voice vote. During 1989 the District issued two checks to the Bank of America in the amount of $249, 104 .96 for debt service on the building. Based upon the current allocation factor of 80% electric and 20% water, a transfer in the amount of $249, 104 .96 should be made from the building fund to the general fund. Director Corbett moved that the Board authorize a transfer from the building fund to the general fund in the amount of $249, 104 . 96 ; seconded by Director Sutton. All Directors, aye, by voice vote. SO MOVED. AUTHORIZATION TO TRANSFER STALE DATED CHECKS TO THE GENERAL FUND Mr. Colburn informed the Board that, as instructed earlier this year, a legal notice was published in the Sierra Sun on May 18 and 25, 1989 concerning stale dated checks with balances over $10 that 7 a the TDPUD issued over three years ago. The balance advertised was $2 , 917 . 28 . One check in the amount of $359. 26 was re-issued. If the checks are not claimed by the deadline printed in the notice, those funds become the property of the District upon formal action by the Board to transfer such funds. Mr. Colburn requested that the Board transfer the balance of $2 ,772 . 14 (which includes those under $10 that were not advertised) to the general fund. It was clarified that the District would reissue a check to claimants making a request after the deadline. Director Corbett moved, and Director Sutton seconded, that the Board authorize a transfer of $2,772 . 14 for stale dated checks to the general fund. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF A PETITION SUBMITTED BY STELLA AND DE SANTIS FOR ABANDONMENT OF AN EASEMENT Ms. Black noted that the Stellas and DeSantis have applied for a lot line adjustment with the County of Nevada for Lots 6 and 7 in Pannonia Ranchos in order to clear an existing encroachment. The applicants have filed a petition with the District and have paid the required fees. Presently, the District provides electricity only to the Pannonia Ranchos subdivision. Electrical facilities are in place; service is provided to Lot 7, and is not provided through the easement in question. Based upon a site review by the District Engineer, he does not anticipate a need for the easement. Staffs recommendation is to release the District's interest in the easement. Director Corbett moved that the Board release the District' s interest in the easement over AP# 16-602-37 and 16-602-38 as requested by the Stellas and DeSantis; seconded by Director Aguera. All Directors, aye, by voice vote. SO MOVED. RESOLUTION ACCEPTING A WATER AND ELECTRIC EASEMENT FROM ENCINO SAVINGS AND LOAN AND RELEASING A TEMPORARY EASEMENT FROM MARTIS VALLEY INVESTORS Ms. Black advised that a temporary easement from Martis Valley Investors, owners of the Tahoe Truckee Inn, was obtained by Dart Resorts in 1980 for the purpose of pipeline construction. The easement was to be abandoned when the Airport Well Transmission and Distribution Main was accepted into the District. The property is currently in escrow and, based upon the title report for the property, no permanent easement was ever recorded for the installed water main. The temporary easement is not in force and has not been for some time. The seller, Encino Savings, recognizes that the District needs a permanent easement for the water main; the buyer is also aware of the pending action of the Board which may result in a permanent easement, 20 feet in width, which will encompass the installed 8 e water main. Director Corbett moved, and Director Aguera seconded, that the Board adopt Resolution No. 8932 accepting the easement from Encino Savings and Loan Association and releasing the temporary construction easement. ROLL CALL: White, absent; all other Directors, aye. SO RESOLVED. CORRESPONDENCE Counsel Phelps' letter of October 16, 1989 re appointment of a Director to fill Director White' s term Chairman Maass made note of the October 16, 1989 letter written by Counsel Phelps regarding the appropriate procedure for appointing a Director to fill a vacancy on the Board. Mr. Phelps confirmed with Nevada County that the individual appointed to fill the vacancy created by Director White 's resignation would serve until the next District General Election in 1991. He also noted that since Director White first notified the Board of her pending resignation at the October 2 , 1989 regular meeting, and since no action was taken to adopt a time-line for filling the vacancy until a special meeting on October 5, there is no support for the allegation appearing in last week's edition of the Sierra Sun that a violation of the Brown Act has occurred. • CLOSED SESSION The meeting was adjourned to closed session at 9 : 49 P.M. for the purpose of discussing personnel matters in accordance with Government Code Section 54957 . RETURN TO PUBLIC SESSION The meeting was returned to public session at 10: 16 P.M. No action was taken as a result of closed session. ADJOURNMENT There being no further business before the Board, Director Corbett moved that the meeting be adjourned at 10: 17 P.M. ; seconded by Director Sutton. All Directors, aye, by voice vote. SO MOVED. TRUCKEE DONNER PUBLIC UTILITY DISTRICT es A. Maass, P iden J// Prepared b Susan M, Craig, Deputy District Cl smc 9