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HomeMy WebLinkAbout1990-10-01 Min - Board • REGULAR MEETING October 1, 1990 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Maass at 7 : 07 P.M. in the TDPUD Board Room. ROLL CALL: Directors Joe Aguera, John Corbett, Richard Curran, Pat Sutton and Jim Maass were present. CONSULTANTS PRESENT: Keith Sauers and John Phelps. EMPLOYEES PRESENT: Tom Buckhouse, Andy Hyde, Bruce Grow, Peter Holzmeister and Susan Craig. OTHERS PRESENT: Among those present in the audience were Summer Bridges, Jenny Mann, Krista Stout and Ole Geisselbrecht. CONSENT AGENDA Director Corbett moved, and Director Curran seconded, that the consent agenda be approved as follows: Resolution No. 9032 calling for bids on watthour meter test table and universal photoelectric counter for testing watthour meters, with a bid opening date of November 7 , 1990. Resolution No. 9033 calling for bids on poles with a bid opening date of October 31, 1990. Transfer of $68 ,978 .70 from water facilities fees to reimburse the general fund for Donner Trails Tank No. 2 ; transfer of $1, 400 from the Ponderosa Ranchos prepaid connection fee account to reimburse the general fund; transfer of $1, 050 from the Martiswoods Estates prepaid connection fee account to reimburse the general fund. All Directors, aye, by voice vote. SO MOVED. WORKSHOP ON WATER MASTER PLAN Manager Holzmeister advised that staff and District consultants have been working on three distinct but related projects, the Tahoe Donner Leak Analysis, the Water Master Plan and Proposition 55. They contain cross-over activities and their implementation needs to be coordinated. He reviewed for the Board time lines representing suggested implementation schedules for the Tahoe Donner leaks and Proposition 55. Tahoe Donner leaks - 1990 - September, complete leak analysis; October, select fiscal advisor; November, adopt final report - define costs; December, develop funding source and select engineer. 1991 - January, public hearings regarding financing and begin design of plans and specs; March, obtain funding; April and May, 1 . environmental review, public hearings, advertise for bids; June, award contract; July, August, September and October and November, construction. Proposition 55 - 1990 - October, receive and review contract, select engineer and select fiscal agent; November, public hearing and preliminary design; December, execute contract. 1991 - January and February, environmental review, public hearings, design plans and specifications for Phase I; March and April, secure Health Department approval for Phase I, advertise for bids and hydrogeology study for Phase II; May, award contract; June and July, commence construction of Phase I, environmental review and public hearing for Phase II ; September and October, design plans and specifications for Phase II; November and December, secure Health Department approval for Phase II. 1992 - January, award contracts for Phase II, amend health permits; May, commence construction for Phase II. Mr. Holzmeister noted the District will have to spend money up front and then be reimbursed under the loan program for the Prop 55 projects. This, as well as repair of the Tahoe Donner leaks, will most likely involve borrowing money, he said, and the two should be coordinated. Mr. Holzmeister then reviewed the Master Plan time line for the Board. • Master Plan - 1990 - October, workshop; November, adopt master plan. 1991 - January, February and March, define and develop financing, revise facilities fee schedules; April, public hearing; May, obtain funding and select engineer; July and August, environmental review; September, public hearings; October, November and December, design plans and specifications. 1992 - January, amend health permits; May, commence construction. District Consultant Keith Sauers introduced Keith Nibb, who assisted in preparation of the PUD Water Master Plan. Mr. Sauers noted that the master plan satisfies the intent of AB 1600 as it relates to the establishment of a capital improvement plan. Their first task was a review of population data and projection and independent determinations of projected residential and commercial growth within the service areas. The conclusions for build-out population densities and water system needs for presently undeveloped areas were based, Mr. Sauers said, on current zoning regulations. Presently, Mr. Sauers said, there are 5, 685 equivalent dwelling units in the District. (EDU is a unit of use that is equivalent to the amount of water used by a typical single family residence. ) This is expected to increase to approximately 16, 000 by 2015, which will be build-out condition for the District. As various service ® areas approach build-out, the District will need to develop additional sources of water including new sources, upgrading and expanding existing sources, increasing pump station capacity, piping to connect new storage tanks to distribution systems and 2 . additional storage. An evaluation of the characteristics of each of the service areas was the next task in the preparation of the master plan. Projected population densities and corresponding water service demands for each of the service areas was determined. Undeveloped areas within the District were also evaluated as to the probability of future water service needs based on present land use and zoning and on the corresponding potential population densities and/or commercial developments in each zoning district. Certain selected areas outside the current District boundaries were also evaluated for future service by the PUD. A proposed schedule for construction of new facilities based on information compiled for each of the service areas is included in the master plan. After some discussion, Chairman Maass directed that the master plan be placed on the next agenda for adoption. Director Sutton suggested publishing a summary of the plan and holding a public hearing. AUTHORIZATION FOR SAUERS ENGINEERING TO PERFORM PRELIMINARY ENGINEERING SERVICES Director Corbett moved, and Director Aguera seconded, that Sauers . Engineering be authorized to perform the preliminary engineering for three components for 1991 construction: Airport Well disinfection station, Northside Well disinfection station, and Gateway Tank construction, at a cost not to exceed $12,750. All Directors, aye, by voice vote. SO MOVED. PUBLIC INPUT There was no public input. CONSIDERATION OF INVESTMENT BANKING SERVICES PROPOSAL Mr. Holzmeister talked of the need to coordinate the Tahoe Donner leak repairs, Proposition 55 and master plan projects. In order to evaluate the funding needs and the timing of cash flow requirements, he proposed that the Board retain the services of a financial advisor. To implement the projects it will be necessary to borrow money. The Tahoe Donner leaks will require long term debt of one to four million dollars. The Proposition 55 program will require the District to advance funds for design and construction with reimbursement from the state to follow; this will require short term borrowing for cash flow. The water master plan projects will be undertaken with a combination of facilities fees and debt. A fiscal advisor could formulate a complete plan of borrowing based on the timetable chosen for the projects; help ® predict the impact of the borrowing on water rates; and could serve as investment banker to secure the funds for the projects. Virginia Horler of Rauscher Pierce Refsnes was present to discuss 3 the services her firm can provide to the District. Director Sutton noted she feels pressured having only one proposal. She also expressed concern over a possible conflict of interest if Rauscher Pierce gives financial advice to the District and then proceeds to provide services relating to issuance of securities. She suggested taking the matter under advisement and seeking other proposals. Ms. Horler noted that Municipal Securities Review Board Rule G-23 states that a firm cannot act as financial advisor and be paid for that work and then go on to serve as an underwriter without the specific permission of the Board, thus her proposed agreement is written as an "investment banking services" agreement. After some discussion, Director Corbett moved that the Board accept the proposal of Rauscher Pierce Refsnes, Inc. for exclusive investment banking services in connection with financing of water system improvements for a fee of $25,000 plus out-of-pocket expenses not to exceed $5, 000. The fee for the financial plan is to be payable from the proceeds of the first issue of securities. Director Sutton stated she is very concerned about handing the entire package to a single firm. She said she would be interested in having Rauscher Pierce prepare the financial plan as she was very impressed with Ms. Horler and thinks the District would get a . good job. However, she thinks a different firm should be selected for the issuance of securities. ROLL CALL: Aguera, Corbett, Curran and Maass, aye; Sutton, no. SO MOVED. REVIEW OF TITLES 1 AND 2 OF THE TDPUD CODE It was suggested that Title 1, a basic introduction to the code, be set aside until all other titles have been reviewed and updated. So as not to have to carry the code books back and forth between the District and home, the secretary was asked to prepare a copy of the code for each Directors' use in the Board room. The matter was tabled to the October 15, 1990 meeting. AUTHORIZATION TO PARTICIPATE IN NCPA NATURAL GAS STUDY Manager Holzmeister advised that to launch a study of y. The the opportunities availa ble in the natural District's cost to participate is $553 . Director Corbett moved that the District be authorized to participate in the NCPA natural gas study at a cost of $553 ; seconded by Director Aguera. All Directors, aye, by voice vote. . SO MOVED. CONSIDERATION OF DRAFT MINUTES OF SEPTEMBER 4, 1990 4 Counsel Phelps and Director Aguera suggested several corrections. Thereafter, Director Corbett moved that the minutes be approved as corrected; seconded by Director Sutton. All Directors, aye, by voice vote. SO MOVED. CORRESPONDENCE There was no correspondence discussed by the Board. BILLS FOR APPROVAL Director Aguera 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. STAFF REPORTS A copy of the staff report dated September 28, 1990 has been made an attachment to these minutes. Financial report Mr. Holzmeister advised that the District currently has $4 , 923, 000 invested with the Local Agency Investment Fund; the balance in the general fund as of July 31, 1990 was $1, 341,356.72 ; also provided to the Board were electric and water balance sheets and income . statements. Alder Creek pipeline The contractor has installed about half of the new water main. Progress has been slow due to wet ground, but should be complete within the next few weeks. Mr. Hyde asked the Board to note the potential extras mentioned in his report. Annual safety report The Board received a copy of the annual safety report prepared by the Safety Committee. Director Sutton asked that the report be amended to include the statistics on injuries for comparison purposes. AS 4165 Mr. Holzmeister advised that AB 4165, introduced by CMUA at the District' s request, has been signed and takes effect on January 1, 1991. It increases the District' s bid limits to $10, 000. Traffic grid lock The grid lock committee is coming together again, Director Maass • noted. Mr. Babson, the Assistant Officer of Emergency Services, was given the go-ahead by the County to work on the project. The PUD will be hosting a workshop for Mr. Babson on October 10. 5 Board/Manager workshop Director Maass advised that he is not available for a workshop until after October 20. Electrical outage Mr. Buckhouse provided a report on the September 28 power outage. Credit cards There was brief discussion regarding District credit cards and the Manager noted he would check into obtaining cards through a major firm. NCPA Commission meeting At the NCPA meeting in South Lake Tahoe, Director Maass was asked to serve on the legislative committee. He said this would not only benefit his government teaching at the high school, but would help renew his contacts with legislators as well. There would be a slight cost to the District due to his attendance at the meetings, he said. None of the Directors voiced disapproval, and Mr. Holzmeister said it would be included in the draft budget. CLOSED SESSION • The Board adjourned to closed session at 10: 07 P.M. to discuss personnel issues and a legal matter in accordance with Government Code Sections 54957 and 54956. 9 (c) . RETURN TO PUBLIC SESSION The Board returned to public session at 11: 19 P.M. There was no action as a result of closed session. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 11: 20 P.M. TRUCREE DO``NNER PUBLIC UTILITY DISTRICT J es A. Maass, P sident Prepared by Susan M. Craig, Deputy District erk smc 6