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HomeMy WebLinkAbout1990-04-02 Min - Board REGULAR MEETING April 2, 1990 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by Chairman Maass at 7 : 10 P.M. in the TDPUD Board Room. ROLL CALL: Directors Joe Aguera, John Corbett, Richard Curran, James Maass and Pat Sutton were present. CONSULTANTS PRESENT: Counsel John Phelps. EMPLOYEES PRESENT: Mary Chapman, Lenna Hossack, Paul Colburn, Joan Antonnuci, Nancy Waters, Lissa Schreiner, Tom Buckhouse, Andy Hyde, Beverly Johnson, Debi Black, Peter Holzmeister and Susan Craig. OTHERS PRESENT: Among those present in the audience were Trevor DelPape, Lizzy Allen, Chris Winch, Molly Mulloy, Nicole Whitehead, Patti Colburn and Dan Mangus. CONSENT AGENDA Director Sutton requested that the minutes of February 20, 1990 be removed from the consent agenda. Director Corbett moved, and Director Aguera seconded, that the consent agenda be approved as follows: That the Board direct the Secretary to place the minutes of March 5 and 15, 1990 into final form. That Director Maass ' report on the NCPA Commission meeting be accepted. The motion was seconded by Director Aguera. All Directors, aye, by voice vote. SO MOVED. MINUTES OF FEBRUARY 20, 1990 Several corrections to the minutes of February 20 were noted and, thereafter, Director Corbett moved that the Secretary be directed to prepare them in final form; seconded by Director Aguera. All Directors, aye, by voice vote. SO MOVED. REVIEW AND CONSIDERATION OF TDPUD MISSION STATEMENT AND GOALS Mr. Holzmeister advised that the Mission Statement and Goals were first adopted by the Board in early 1984 and haven't been reviewed since then. He suggested the Board reaffirm the mission statement and update its goals. After reviewing the document, Director Corbett moved that the Board adopt the Mission Statement and Goals as corrected; seconded by Director Curran. All Directors, aye, by voice vote. A copy of the document in its final form has been made an attachment to these minutes. 1 PUBLIC INPUT There was no public input. ACCEPTANCE OF THE GLENN REITER REPORT AND AUTHORIZATION TO PROCEED WITH PHASE II Manager Holzmeister noted that when he realigned some of the purchasing and warehousing functions of the District, the Finance Committee became concerned that there may not be a proper level of control being exercised over the flow of materials through the purchasing and warehousing system. Glenn M. Reiter Associates was retained to study the matter. Mr. Holzmeister noted the Reiter report says there is an area for great improvement; the District needs to have more sophisticated planning and control. . .the Engineers should be more involved in planning and should use a work order system for that purpose. This would allow for better purchasing decisions. Mr. Holzmeister said that the organization chart he is proposing will go along with the comprehensive resource management system as recommended by Reiter. A summary of the Reiter report follows: Although the scope of their work only covered inventory and purchasing, they believed that only modest gains would be made by focusing on inventory and purchasing. As the District continues to expand the number of electric and water connections it serves, it may be very beneficial to adopt a uniform methodology for new construction, billable work as well as operations and maintenance of its equipment and facilities. Reiter suggested that the District consider a Comprehensive Resource Management System (CRMS) which fully integrates the planning, scheduling, inventory, accounting and asset management for all new construction, billable work, maintenance, operation, repair and replacement, the CRMS would include a set of procedures for handling work input, reporting, documenting, processing, planning, estimating, scheduling, cost accounting and property record management. CRMS would provide management with a tool to control the budget and cost; a tool for long range planning (o & M as well as capital) ; as well as a tool for establishing appropriate staffing levels. Gregg Lowry, representative of Reiter, suggested that if the District is interested in pursuing this concept they begin with an educational workshop of some of the key staff. This would be a comprehensive program requiring "top down" support and a long-term commitment from the Board, management and staff. (A copy of Mr. Lowry' s letter and report has been made an attachment to these minutes. ) 2 District Engineers Buckhouse and Hyde explained how new service connections, maintenance and construction are presently handled. ® After some discussion, Director Corbett moved that the Board accept the Glenn M. Reiter report dated December 11, 1989 as an interim report and asked that a representative appear before the Board with a proposal and scope of services for Phase II (a comprehensive resource management system) . The motion was seconded by Director Sutton. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF AN ORGANIZATION CHART FOR THE DISTRICT Manager Holzmeister's memo of March 30, 1990 has been attached to these minutes. He described the organization chart he is recommending to the Board. He said it would focus the effort of the District on service to the customer; will provide for a lean middle management staff; will provide for a proper balance between short-term planning, control and customers; relates tasks well together; allows the Manager to focus on long-range plans and outside relations while still being in touch with operations through middle management reports. It calls for the elimination of the Technical Services and Finance Departments (including the position of Finance Supervisor) and creates Planning and Maintenance Services Departments. Mr. Holzmeister said that the elimination of the Finance Department is not meant to reflect negatively on the current Finance Supervisor, Paul Colburn, but he thinks the District would be better served by reemphasizing efforts • on planning and centering it in a separate department. There were several organization charts copied to the Board along with Mr. Holzmeister's memo; it was not evident which were official and which were proposed. Director Sutton asked that, in the future, staff clearly indicate the date, origin and whether a document is proposed or adopted before it is duplicated; this will eliminate confusion. Mr. Colburn presented a memorandum dated April 2 , 1990 to the Board; a copy is attached. Mr. Colburn objected to the manner in which the suggestion to eliminate the Finance Department, including his position, was presented - through a public document in the meeting packet. He said that he feels planning is necessary, but a financial person is also needed. He noted that over the last three years the Finance Department has had many accomplishments. The accounting system has been vastly simplified and accurate, timely information is available. He was able to identify and correct accounting errors in the system which resulted in a $1,778, 637 accounting adjustment on the 1987 financials. It is now possible to provide the auditors with complete work papers. The property postings (that were previously two years behind) are now current and correct. Mr. Colburn said the data processing operations of the District have been greatly streamlined and improved. The financial and customer accounting functions are much more user-friendly and provide information that was never available before. 3 The Finance Supervisor indicated that the District's water system is in serious trouble - it's not accumulating enough for ® replacement - and the District has also just lost the mill, one of its biggest power customers. He said he believes a qualified finance person's experience and input will be greatly needed in the future. Mr. Holzmeister agreed that financial planning is necessary; he said he thinks the Engineers should be able to plan for costs. He agreed that the property ledger is up to date, but said it can't be used for anything. Director Sutton indicated she is not sure whether she agrees that the financial planning should be the responsibility of the Engineering Department. Director Sutton asked that the proposed organization chart reflect that the Executive Secretary reports directly to the Board, as was intended when the position was created. Director Curran said the Board will take Mr. Colburn' s letter into consideration prior to making any decisions on the organization chart. He asked that the Board be copied with organization charts from other Districts. CONSIDERATION OF AD HOC COMMITTEE'S RECOMMENDATIONS REGARDING A BOARD/MANAGEMENT WORKSHOP Regarding the Board/management workshop, the ad hoc committee is recommending that the workshop be scheduled for April 14 or 28 at Donner Lake Village, that George Ticknor be appointed to serve as facilitator, and that the Directors and General Manager work together with the facilitator to develop the agenda. Cost to the District would be approximately $800. The Chairman advised he would be unable to attend a Saturday session until after the school year. There was some discussion, and Director Curran noted he thinks this workshop could have a real impact on the District. He moved that the Board authorize the Manager to set the time, date and place, and to secure the services of a facilitator. The Chairman asked that the motion be amended to state that the facilitator come from out of the District and be unknown to all participants. June 23 was selected as the tentative date. Director Aguera seconded the motion. All Directors, aye, by voice vote. SO MOVED. RESOLUTION AUTHORIZING FILING OF NEGATIVE DECLARATION FOR DONNER TRAILS TANK NO. 2 Director Sutton asked that the Board be copied with the initial study on Donner Trails Tank No. 2 . • The Chairman directed that a public hearing to consider the resolution authorizing the filing of a negative declaration for the 4 Donner Trails Tank No. 2 project be set for 7: 30 P.M. on May 7, 1990. ® APPOINTMENT OF DIRECTOR TO TDPUD FINANCING CORPORATION BOARD As directed by the Board at the last regular meeting, a notice was placed in the Sierra Sun advertising the vacancy on the TDPUD Financing Corporation Board created by Tom Archer' s resignation. One individual, Harry Smith of Tahoe Donner, expressed an interest in serving. Director Corbett moved, and Director Aguera seconded, that Harry Smith be appointed to fill the vacancy on the Financing Corporation Board for the remainder of the term which expires on August 21, 1992 . All Directors, aye, by voice vote. SO MOVED. AUTHORIZATION FOR MANAGER TO ATTEND APPA SEMINAR ON NEGOTIATING POWER CONTRACTS Director Corbett moved, and Director Aguera seconded, that the Manager be authorized to attend the American Public Power Association seminar in Boston on April 23 and 24 concerning negotiating power contracts. The cost is will approximately $1, 500. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF MARCH 27, 1990 MEMO REGARDING SB 1879 The Manager recommended sending a letter opposing SB 1879, which would require SMUD to submit proposed changes in its rates to the California Energy Commission for an advisory opinion. If the bill passes, the California Energy Commission would be empowered to investigate the reasons for the proposed rate change and bill SMUD for their costs. CMUA believes that if the Energy Commission develops the expertise to evaluate electric utility rates, it will be a matter of time before they will push for authority over all public utility rates. There was some discussion, and Director Aguera moved that the Board authorize the President to send a letter opposing SB 1879 to Senators Greene and Doolittle and Assemblyman Chandler; emphasis is to be placed on the fact that local control over rate setting will be lost and put in the hands of a statewide commission. The motion was seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL - STATEMENT OF GENERAL FUND After a brief review, Director Corbett moved that the bills presented for consideration be approved for payment; seconded by Director Aguera. All Directors, aye, by voice vote. SO MOVED. • 5 STAFF REPORTS Finance Supervisor - financial statements - investment report Finance Supervisor Colburn presented Income Statements and Balance Sheets through February 28, 1990, and January and February investment reports. There were no questions. Copies of the documents have been attached for reference. Electric Engineer - CHP vehicle inspection - commercial driver license program A detailed memorandum dated March 29, 1990 was provided by Mr. Buckhouse pertaining to CHP vehicle inspection and the commercial driver license program. Manager Holzmeister advised that the District is subject to the Biennial Inspection of Terminals (BIT program) since it owns trucks with three or more axles over 6, 000 pounds, transports hazardous materials and tows trailers or semi-trailers resulting in a combination length over 40 feet. He briefly explained the program and what the District is doing to comply. Civil Engineer - Hirschdale water system Mr. Hyde's memo of March 30, 1990 advises that the District has received testing equipment that will allow the measuring of iron . and manganese concentrations of the Hirschdale well and distribution system water immediately after taking the sample. Some of the operational changes that were discussed at the community meeting in Hirschdale will be implemented, and the iron and manganese concentrations will be monitored. A follow-up meeting with the Hirschdale residents is tentatively set for the last week in April. Office Supervisor - property and liability insurance renewal By memo, Mrs. Chapman advised the Board that the property and liability insurance proposal should be received by April 11, 1990, and included in the next Board meeting packet. Kathy Pooler, of Frank B. Hall, has offered to present the proposal to the Board at the April 16 meeting. Directors and officers insurance coverage applications are in the process of being completed. CLOSED SESSION The Board adjourned to closed session at 9 : 45 P.M. pursuant to Government Code Section 54957, to discuss personnel matters. RETURN TO PUBLIC SESSION The meeting was returned to public session at 11:40 P.M. No action was taken or direction given as a result of closed session. 6 ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 11:41 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jame$ A. Maass, P 'sident f Prepared Susan M. Craig, Deputy District Clark smc 7