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HomeMy WebLinkAbout1990-12-17 Min - Board REGULAR MEETING December 17, 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 : 02 P.M. in the TDPUD Board Room. ROLL CALL: Directors Joe Aguera, John Corbett, Richard Curran and James Maass were present. Pat Sutton was absent due to illness. EMPLOYEES PRESENT: Tom Buckhouse, Mary Chapman, Andy Hyde, Joe Straub, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps; Tim Grover and Joe Howard of SEA. OTHERS PRESENT: Among those present in the audience were Scott Andre of the Sierra Sun, Bill Quesnel, Mel Nicholson and Karl Kuttel. ELECTION OF OFFICERS FOR 1991 Director Corbett nominated Joe Aguera for President of the Board. There were no additional nominations, and Director Corbett moved that the Board cast a unanimous ballot for Mr. Aguera. All Directors, aye, by voice vote. SO MOVED. • President Aguera assumed the chair and asked for nominations for Vice President. Director Maass nominated Richard Curran for Vice President. There were no other nominations, and Director Maass moved that a unanimous ballot be cast for Mr. Curran. All Directors, aye, by voice vote. SO MOVED. Director Curran nominated Pat Sutton to act as Treasurer, and Director Maass moved to cast a unanimous ballot for Mrs. Sutton. All Directors, aye, by voice vote. SO MOVED. CONSENT AGENDA Director Maass moved, and Director Corbett seconded, that the consent agenda be approved as follows: That the transformer ratiometer bid be awarded to the low bidder, Multi-Amp, in the amount of $8 ,994 . 63 . That the Board adopt Resolution No. 9037 approving specifications and calling for bids on electrical distribution equipment - cable. ROLL CALL: Sutton, absent; all other Directors, aye. SO MOVED. CONSIDERATION OF RESOLUTIONS ADOPTING CERTAIN OVERHEADS TO BE USED IN CONJUNCTION WITH THE UNIFORM CONSTRUCTION COST ACCOUNTING 12/17/90 Page 1 ORDINANCE - 1990 AND 1991 • office Manager Chapman advised that, since the District has elected to adopt the Uniform Cost Accounting Act policies and procedures, overhead rates must be recalculated each year for inclusion in the annual budget. She compared the 1989 and proposed 1990 and 1991 overhead rates and explained her calculations. After some discussion, Director Maass moved that the Board adopt Resolution No. 9038 adopting certain overheads to be used in conjunction with the Uniform Construction Cost Accounting ordinance - 1990; seconded by Director Corbett. ROLL CALL: Sutton, absent; all other Directors, aye. SO RESOLVED. Director Maass moved, and Director Corbett seconded, that the Board adopt Resolution No. 9039 adopting certain overheads to be used in conjunction with the Uniform Construction Cost Accounting Ordinance - 1991. ROLL CALL: Sutton, absent; all other Directors, aye. SO RESOLVED. ALDER CREEK PIPELINE PROJECT - PROGRESS PAY REQUEST NO. 3 - RESOLUTION OF ACCEPTANCE District Engineer Hyde explained that an error in previous payments resulting in an underpayment of $3 , 601.23 to the contractor was discovered. Authorization of Progress Pay Request No. 3 will authorize payment of all money due the contractor at this time less 10o retainage. No additional work was performed since the last pay request, but all work within the contract has been completed and Estabrook is entitled to payment. Mr. Hyde recommended approval of the request. Director Corbett moved, and Director Maass seconded, that the Board approve Progress Pay Request No. 3 to Estabrook Construction in the amount of $3 , 601.23 (because of an error in Pay Request No. 2) All Directors, aye, by voice vote. SO MOVED. The Board reviewed the draft resolution accepting and approving the project and directing the filing of the Notice of Completion. Director Maass explained that the District usually requires that 35 days expire following filing of the Notice for claims to be received (since mail from Nevada City can sometimes take several days) . The Board agreed final payment to the contractor should be held 35 rather than 30 days. Director Maass moved, and Director Corbett seconded, that the Board adopt Resolution No. 9040 approving and accepting the Alder Creek Road pipeline replacement and directing filing of the Notice of Completion. ROLL CALL: Sutton, absent; all other Directors, aye. SO RESOLVED. DONNER TRAILS TANK NO. 2 - CHANGE ORDER NO. 3 • Mr. Hyde noted that the Donner Trails project is essentially complete, but it is now too late in the season to finish certain 12/17/90 Page 2 tasks (paving and landscaping) . The tank can be put into service • as soon as all testing is successfully passed. Resource Development has submitted a letter requesting that the contract time be extended to allow the remaining work to be done during favorable weather conditions. Sauers Engineering reviewed the request and recommends approval of Change Order No. 3 . The change order extends the time to complete the remaining work until next year; there is no increase in the contract price. The District' s Civil Engineer will determine when the contractor is to proceed with the remaining work. The contractor agreed that any additional work or repair work made necessary by this extension will be performed by him at no cost to the District. Director Corbett moved, and Director Maass seconded, that the Board approve Contract Change Order No. 3 , an extension of time, on the Donner Trails Tank No. 2 project. ROLL CALL: Sutton, absent; Corbett, Curran, Maass and Aguera, aye. SO MOVED. PUBLIC INPUT There was no public input. POSITION PAPER ON INCORPORATION Manager Holzmeister was advised by Eric Sandel that the Planning for Tomorrow in Truckee Committee is preparing to submit • information to Nevada County LAFCo responding to a request for information on why the Committee is proposing to incorporate the City of Truckee without consolidating the special districts into the city. The PUD was invited to submit comments for attachment to their report, and Mr. Holzmeister drafted some comments for consideration by the Board. A copy has been attached for reference. After some discussion, Director Maass moved that the position paper be placed in final form for the President's signature; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF DRAFT MINUTES OF NOVEMBER 19, DECEMBER 3 AND DECEMBER 10, 1990 Director Corbett moved, and Director Maass seconded, that the Secretary be directed to prepare the minutes of November 19, 1990 in final form. All Directors, aye, by voice vote. SO MOVED. Director Corbett moved that the Secretary be directed to prepare the minutes of December 3, 1990 in final form incorporating the correction suggested by Director Sutton; seconded by Director Curran. Director Aguera abstained from voting since he was not present at that meeting; all other Directors, aye, by voice vote. SO MOVED. Director Maass moved, and Director Corbett seconded, that the minutes of December 10, 1990 be placed in final form. All Directors, aye, by voice vote. SO MOVED. 12/17/90 Page 3 PUBLIC HEARING • CONSIDERATION OF THE 1991 BUDGET AND AN ORDINANCE ADJUSTING WATER RATES The public hearing was opened at 7: 30 P.M. Manager Holzmeister explained that, basically, the Electric portion of the budget requires following the same schedule of maintenance, operation and repair as 1990. The Water Department, however, needs a rate increase and a change in programs to emphasize leak repair, preventive maintenance and planning. He explained that costs are increasing faster than new services. Mr. Holzmeister presented a rate comparison of the District with other local water utilities. WestPac had the highest monthly charge, $26. 68; Glenshire was lowest with $14 . 50. The PUD presently charges $14 .41 plus the appropriate zone charge. Staff is proposing that the base water rates be increased across the board by $6.50 a month, and that the zone charges remain the same. Mr. Holzmeister noted it has been four years since the last increase. Mel Nicholson, a homeowner on Highway Drive, said it is his belief that rectification of the low water pressure problem in his area is • included in the draft 1991 budget, and Mr. Holzmeister advised that $35, 000 has been budgeted to correct the problem. Mr. Nicholson noted he does not oppose the proposed rate increase as long as that particular repair is not cut from the budget. Bill Quesnel, resident of Ponderosa Palisades, asked why the District only charges people who build homes - what about people who own vacant lots? He said that Incline Village charges $14 or $15 per month for water plus $4 per month for capital improvements. He suggested that the District pass an assessment to replace aging equipment. Director Maass advised that there is a standby fee charged to owners of unimproved property at the maximum legal amount allowed by law for water and electricity both. This has been the practice since the 1970's. After some discussion, Director Maass moved that the Manager be directed to contact CMUA and ask them to look into the matter of amending the law regulating standby charges to allow for a higher fee; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. Mr. Quesnel indicated his agreement with this idea. Mr. Quesnel stated he would like to see the capital program structured differently. He thinks it should have its own funding source and not be tied into rate increases. • Karl Kuttel said he doesn't think the proposed water rate increases are fairly distributed. He thinks it should be based on the pumping charge. Also, he said, it may not be wise to increase the 12/17/90 Page 4 rates by so much because of the economy at this time. • Mr. Holzmeister advised that a rate analyst is currently in the process of reviewing the pumping zone costs. Mr. Kuttel 's concern is being addressed, and there should be a report from the consultant in January. He further noted that the District has tested zones 7 and 9 and the amount charged to the customer is fairly close to the actual cost of pumping. There being no further comment or questions, Director Corbett moved to close the public hearing; seconded by Director Curran. So MOVED. Director Maass moved that the Board adopt the 1991 Budget as presented; seconded by Director Curran. ROLL CALL: Sutton, absent; all other Directors, aye. SO MOVED. Counsel suggested a minor change in wording to the proposed ordinance and, thereafter, Director Maass moved that the Board adopt Ordinance No. 9002 establishing water rates; seconded by Director Corbett. ROLL CALL: Sutton, absent; all other Directors, aye. SO ORDAINED. TAHOE DONNER LEAK ANALYSIS - PRESENTATION OF DRAFT FINAL REPORT BY SEA - CONSIDERATION OF PROPOSAL FOR PRELIMINARY ENGINEERING - DISCUSSION OF CORRESPONDENCE FROM NEVADA COUNTY REGARDING ICY ROADS . Joe Howard and Tim Grover of SEA were present at the meeting. The draft final report was provided to the Directors last week for review. SEA is proposing a project that totals 107 , 000 feet of main line at an estimated cost of $10, 000, 000 and have prioritized different sections of the project. He said a determination as to the extent of the replacement project needs to be made soon in order to be able to start work on design, financing and environmental questions. Mr. Hyde is recommending that the District replace 60, 000 feet of pipeline at a cost of $5, 824 , 000 at this time. Mr. Grover gave a brief overview of the SEA report. He estimates that the District is spending $350, 000 per year on the Tahoe Donner leaks (for pumping and repair) . He said large rocks were found in the backfill in areas where there are the most leaks. Concerning cathodic protection (which was recommended by a consultant at one time) he said he didn't think it would have remedied the situation as the rocks stop the current from getting to the lines. Units 6, 9 and 10 have the most corrosive action. The system appears to be in fairly good condition outside the area with the poor backfill . Corrosive activity caused the holes in the pipe, but corrosion probably wouldn't have happened if the coating hadn't been punctured by the rocks. He mentioned that some of the damage was caused by equipment. • Mr. Grover said that SEA is recommending ductile iron pipe be used for main line replacement and polyethylene be used for the services. Also, he proposed that District regulations be changed 12/17/90 Page 5 to call for 4 ' of cover rather than 3 ' of cover. • The Manager suggested that the Board formally accept the Tahoe Donner Leak Analysis at the next Board meeting. SEA submitted a proposal for services that they think should be done as soon as possible. One of the services involves videotaping and photographing the streets in which pipelines will be replaced. This must be done before snow accumulates in Tahoe Donner. It will be useful as the replacement project is designed, and also after the project is completed if disputes arise concerning the conditions that existed prior to the start of this project. Mr. Hyde is recommending that SEA be authorized to perform the Tahoe Donner pipeline replacement project pre-design photography at a cost of no more than $12 , 000. Director Maass moved that SEA be authorized to begin the initial process as outlined in their proposal; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. The packet included a copy of the letter from Wes Zachary of Nevada County which briefly summarizes the discussions held by Mr. Holzmeister and the County Supervisors regarding icy conditions in Tahoe Donner. A copy is attached. Mr. Holzmeister said he understands the County has placed caution signs on Northwoods and Alder Creek regarding icy conditions, and the District is in the • process of setting signs up at obvious leak locations. Responding to Director Maass ' question, Counsel said he doesn ' t think that by putting caution signs up the District will incur any liability, so long as signs are placed only at locations where it is certain that a pipe is leaking. He said that because so much of Tahoe Donner' s roads are covered with snow and ice, unless the road is dry for 50 ' in each direction, it would be hard to place the blame on the District if someone' s vehicle slides on ice. A weekly inspection program is being implemented and the report will be made available to the County. New signs will be placed as new hazards are identified. The ultimate solution is to undertake the pipeline replacement project as soon as possible. CORRESPONDENCE No correspondence was discussed by the Board. BILLS FOR APPROVAL Director Maass moved, and Director Corbett seconded, that the Board approve the bills presented for consideration. All Directors, aye, by voice vote. SO MOVED. STAFF REPORTS • A copy of the staff report is attached to these minutes. 12/17/90 Page 6 Water quality report • All 27 samples taken within the District' s distribution system during November were free of coliform bacteria and met the State 's drinking water standards. Once again, the report indicates the presence of coliform bacteria at the Northside Well; Mr. Hyde is continuing his investigation and will keep the Board informed. Mr. Holzmeister advised that chlorination is preventing the bacteria from entering the distribution system. CMUA annual conference The annual conference is scheduled for March 6, 7 and 8 in Napa. Directors should respond by February 3 in order to take advantage of lower room rates. Mr. Holzmeister encouraged all Directors to attend as CMUA usually puts on an excellent conference. Gridlock prevention plan Manager Holzmeister noted that Director Maass initiated the study of a gridlock prevention plan and, thereafter, the County Office of Emergency Services took the project under its wing. They have prepared a document setting forth procedures to be followed during winter storms and which also lists key participants in the process. CLOSED SESSION The meeting was adjourned to closed session at 8: 45 P.M. to discuss pending litigation in accordance with Government Code Section 54956.9 (b) (1) and labor negotiations, Section 54957 . 6. RETURN TO PUBLIC SESSION The meeting was returned to public session at 9: 52 P.M. No action was taken as a result of closed session. ADJOURNMENT There being no further business before the Board, Director Maass moved that the meeting be adjourned at 9: 53 P.M. seconded by Director Corbett and passed unanimously. CKEE DONN P7LIC UTILITY DISTRICT r C�- o e R. Aguer P eside t ' Prepared by 1W.. - '— Susan M. Craig, Deputy District CleXX smc • 12/17/90 Page 7