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HomeMy WebLinkAbout1990-11-05 Min - Board REGULAR MEETING . November 5, 1990 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at 7 : 08 P.M. in the TDPUD Board Room by President Maass. ROLL CALL: Directors Richard Curran, Pat Sutton and Jim Maass were present. Director Aguera was out of town and unable to attend; Director John Corbett was expected. EMPLOYEES PRESENT: Tom Buckhouse, Mary Chapman, Andy Hyde, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps. OTHERS PRESENT: Scott Andre of the Sierra Sun and Dick VanLandingham. CONSENT AGENDA Director Sutton moved, and Director Curran seconded, that the consent agenda be approved resulting in the following action: Award of the bid for poles to J. H. Baxter Company at a cost of $173 per pole. A transfer in the amount of $49, 462 . 65 from the water facilities fees to reimburse the general fund for a payment on the Donner Trails Tank No. 2 project. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF BENEFIT POLICY FOR MANAGEMENT The Chairman noted that he asked Mr. Holzmeister to present, in addition to the draft vacation policy for management, an entire benefit policy for consideration by the Board. The Manager advised that the District consistently follows the practice of granting management employees the same benefits as the Union employees, but there is no written policy. Mr. Holzmeister presented a draft management benefit policy that follows the language of the memorandum of understanding. The language was modified only in cases where it clearly does not apply to a management employee. He noted that if the Board adopts the policy, it is implementing no change, only formally stating what is already being done. Director Sutton asked that a committee be appointed to review the draft with the Manager, and she volunteered to be a member. She said the draft was received on Friday, and she didn't have time to . compare it with the Union MOU. She also indicated concern over the use of the term "personal disability leave" in place of "sick leave, " and some of the provisions of that section. 1 Counsel said he reviewed the draft and would suggest several minor . changes. The Chairman appointed Director Sutton a committee of one to review the proposed policy with the Manager and Counsel and to report back to the Board. At this point in the meeting, 7: 10 P.M. , Director Corbett arrived. CONSIDERATION OF A REPORT FROM SEA ON THE TAHOE DONNER LEAK STUDY Civil Engineer Hyde reported that SEA originally expected to have a draft copy of their final report for the Tahoe Donner leak analysis available, but it was not ready. The Chairman tabled the matter to the next Board meeting. CONSIDERATION OF PROPOSAL FROM SAUERS ENGINEERING FOR DESIGNING THE GATEWAY TANK Mr. Hyde noted that Keith Sauers is currently performing the preliminary services which were necessary to finish before the snow, and was then planning to wait for the completion of the District's financial plan, adoption of the budget, and signing of the Proposition 55 contract before proceeding with the design work. Since it will probably take some time for all these things to be completed, Mr. Hyde concluded it would be impossible to build the • tank next year if the design work was delayed that long. The proposed work (site acquisition, environmental review, design and preparation of the contract documents) must be done concurrently in order to have the job out for bid and award in the spring. Mr. Hyde advised he reviewed Sauers Engineering' s proposal and recommended they be authorized to proceed with design services for the Gateway Tank. Director Curran moved, and Director Corbett seconded, that the Board authorize Sauers Engineering to proceed with the design services outlined in his proposal for the Gateway Tank. All Directors, aye, by voice vote. SO MOVED. PRESENTATION OF THE 1991 BUDGET AND DIRECTION TO SCHEDULE A PUBLIC HEARING Manager Holzmeister distributed copies of the draft budget and noted it has been assembled as a cash flow document that is organized along functional lines, rather than being a document organized along the lines of a year end financial statement. The goal in making this change is to refocus on functions, productivity, priorities and scheduling of work effort. The organizational structure and work habits of the crews are changing. Focus is on a new set of priorities and, therefore, a program budget format will be useful in planning. The budget is the plan . of activity; it forms the basis for accomplishing periodic monitoring and review. 2 No rate increase is being recommended for the Electric Department • in 1991. The phase balancing and system strengthening programs will be continued as well as the cost of service study, negotiations for wholesale power from NCPA, and the District' s organizational renewal process. In order to generate the revenues necessary to cover the projected expenses for the water cash flow budget, Mr. Holzmeister said, a rate increase of about 36% will be required. There has not been an increase in Truckee for the past four years. In residential Zone 1, a 36% increase would amount to $6. 12 per month. At this time, the District is experiencing a large number of leaks in the Tahoe Donner system which have driven up repair and pumping costs. Also, substantial new costs have been imposed because of state and federal mandates for water quality monitoring and system disinfection. Meeting these needs while also performing necessary preventive maintenance and operation has caused expenses to increase dramatically during the past two years. Because of the recent departmental reorganization and different cost center allocations, actual budget figures from 1990 were not included in the draft. For comparison purposes, the Board asked that, where possible, figures from 1990 be provided for review. After some discussion, the Chairman directed that a workshop to discuss the draft budget be scheduled for November 19 . He asked that only necessary items and perhaps the SEA report on the Tahoe Donner leaks be placed on that meeting agenda. PUBLIC INPUT There was no public input. DIRECTION TO SCHEDULE A PUBLIC HEARING TO CONSIDER A WATER RATE ADJUSTMENT This matter was put over to the same agenda as consideration of the budget. CONSIDERATION OF CHARGE ACCOUNT SYSTEM Office Manager Chapman advised that, over the past few months, staff has been researching the possibility of offering additional services to customers, one being to allow customers to pay amounts owed the District by credit card. She reviewed several situations where it could be helpful to use a credit card. She recommended the Western Union Corporation program. The company would supply and maintain the required equipment and there would be no charge to the District for using it. The PUD would have to install a regular business phone line and pay the monthly charges; Western Union would provide toll free service for processing the transactions and the customer would be billed a fee on their credit card. The . agreement with Western Union could be canceled by giving ten days written notice. Mrs. Chapman noted that Sierra Pacific implemented the program over the summer on a trial basis and has just made it 3 a permanent part of their customer services program. • There was some discussion, and Director Sutton asked if it would be more feasible for the District to become a credit card merchant. Mrs. Chapman said she would investigate and bring information, including fees that would be charged to the District and the customers, back to the Board for consideration. CONSIDERATION OF PROPOSAL FOR EARTHQUAKE INSURANCE Director Corbett moved, and Director Sutton seconded, that the Board obtain earthquake insurance on the booster buildings and pumps and substations for the period November 6, 1990 to May 1, 1991 at a cost of $3 ,710. All Directors, aye, by voice vote. SO MOVED. BROWN ACT - REVIEW OF REPEALED PROVISIONS Even though certain provisions of the Brown Act were repealed, the Board agreed to continue complying with those sections as suggested by Counsel. Chairman Maass made reference to the editorial that appeared in the Sierra Sun which said. . . . "no longer will our local government boards be required to post their agendas 72 hours in advance. . . . local governments aren't required to allow public • comments at their meetings any more. . . .a board could make decisions about public monies without allowing public comment. . . " He noted that the article could be misleading, as another section of the Brown Act calls for "public comment" to be listed on public meeting agendas. This means there is a place for public input during the meeting; however, allowing comments on every agenda item is not required. It was noted that, traditionally, the PUD has allowed public comment on all agenda items as well as advertising and holding public hearings on items of concern (even though it may not be required by the Brown Act) . The Board intends to continue this practice. AUTHORIZATION TO DECLARE CABLE SURPLUS Mr. Buckhouse advised that in 1985 staff established standard underground cable sizes for use in the system and several existing sizes were eliminated. The District still has in stock 334 feet of single phase secondary cable size 250 kcmil. This cable has an inventory value of $350.70 and can be used on the private side of a transformer. Director Corbett moved, and Director Curran seconded, that the Board adopt Resolution No. 9035 declaring certain cable surplus and • issuing a call for bids. ROLL CALL: Aguera, absent; all other Directors, aye. SO RESOLVED. AUTHORIZATION TO PURCHASE POLES FROM SPPCO (WEEMS PROJECT) 4 Electrical Engineer Buckhouse advised that during 1987 the District • became aware that SPPCO intended to provide electrical service to a new residence within the District' s service territory. The PUD exercised its right to provide service to the property and began negotiating with Sierra Pacific to purchase poles they had installed. Also discussed was the matter of two additional residences and the TSD installation that are within the District' s territory but being served by SPPCo. The negotiations between the PUD and SPPCo have yet to be completed, but the matter of purchasing the five poles and two anchors that the District made use of to provide service to the Weems ' property has been resolved. Sierra Pacific will charge $681 per pole and $191 per anchor for the facilities. Mr. Buckhouse said this is a fair price and recommended going forward with the purchase. Director Corbett moved, and Director Curran seconded, that the Board authorize purchasing the five poles and two anchors as recommended by Mr. Buckhouse. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF DRAFT MINUTES OF OCTOBER 15, 1990 Several corrections were submitted and, thereafter, Director Corbett moved that the minutes of October 15, 1990 be approved as • corrected; seconded by Director Curran. All Directors, aye, by voice vote. SO MOVED. CORRESPONDENCE Department of Health Services letter of October 17 , 1990 The October 17 , 1990 letter from Jess Morehouse, Associate Sanitary Engineer of the Department of Health Services, comments on the draft water system master plan and notes concerns about certain health effects. The public hearing to consider the master plan is set for 7: 30 P.M. on November 19, and the correspondence from the Department of Health Services will be discussed at that time. BILLS FOR APPROVAL After several questions were answered, Director Corbett moved that the bills presented for consideration be approved for payment; seconded by Director Curran. All Directors, aye, by voice vote. SO MOVED. STAFF REPORTS . A copy of the report has been attached to these minutes for reference. 5 Damage to District backhoe • Mr. Holzmeister referred to the memorandum from Bruce Grow updating the Board on the damaged backhoe and also provided pictures of vehicle. Finance report Attached to the staff report are the statement of general fund, investment report, balance sheets for water and electric, and income statements for water and electric describing the financial condition as of September 30, 1990. CalTrans acquisition of property at Southside Manager Holzmeister reported that he met with Cesley Weaver of CalTrans on October 19 to discuss their interest in acquiring approximately 20 feet of District property at Southside. CalTrans is planning to widen Highway 267 from Estates Drive to a point beyond Palisades Drive. they have agreed to relocate the rocks that control access to the site, rip rap, and two fire hydrants. A formal offer should be received soon. Board/Manager workshop Mr. Holzmeister advised that the workshop is scheduled for • Saturday, November 17 . Director Sutton noted that she does not plan to attend. CLOSED SESSION At 8 : 50 P.M. the Board adjourned to closed session for the purpose of discussing Union negotiations in accordance with Government Code Section 54957. 6, and pending litigation in accordance with Section 54956.9 (b) (1) . RETURN TO PUBLIC SESSION The meeting was returned to public session at 10: 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 10:20 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT J es A. Maass, Pres' ent Prepared by . Susan M. Craig, Deputy District Clerk smc 6