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Home My WebLink About2004-06-04 Min - Board REGULAR MEETING June 16, 2004 In accordance with District Code Section 2.08.010, the TDPUD minutes are action only minutes. All Board meetings are recorded on audio tapes which are preserved perpetu- ally and made available for listening to any interested party upon their request. The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at 7:03 PM in the TDPUD Board room by President Maass. ROLL CALL: Directors Joe Aguera, Ron Hemig, James Maass, Patricia Sutton and Nelson VanGundy were present. EMPLOYEES PRESENT: Ian Fitzgerald, Mary Chapman, Peter Holzmeister, Neil Kaufman, Alan Harry, Kathy Neus, Ed Taylor and Barbara Cahill CONSULTANTS PRESENT: Steve Gross, Larry Rolapp, John Murphy, Dennis DeCuir, Rick Kaufman and Glenn Reiter OTHERS PRESENT: Frank and Juanita Schneider, Mark Wasley, Rick McConn, Ed Morgan Jay Lambiotte, Jody Sweet, Paul Raymore, Chris Perlitz and one other unidentified member of the public. PUBLIC INPUT -- There was no public input. CONSIDERATION OF THE FOLLOWING DOCUMENTS RELATING TO THE FORMATION OF THE COMMUNITY FACILITIES DISTRICT NO. 04-1 (GRAY'S CROSSING) Director Maass recused himself from the dais and moved to a seat in the audience because his residential property borders the Gray's Crossing development area. Attorney Steve Gross of Porter Simon excused himself from the dais and moved to a seat in the audience because the law firm works with East/West partners. Director Sutton asked if it was legal for a CFD to tax property owners more than what facilities are necessary to meet the needs of the specific development. Mr. John Murphy said it is legal. A CFD does not have constraints like an assessment district where facilities are limited to ones that are a direct benefit to the development. Director Hemig moved and Director Aguera seconded, a motion to adopt the following documents, with a change to the wording in "i" in the List of Permitted Facilities to read "natural gas, telephone, electric, and telecommunications facilities and trenching and appurtenant work and improvements, including the relocation of existing electric transmission facilities and the installation of natural gas transmission facilities owned or to be owned by shareholder owned utility companies regulated by the California Public Utilities Commission, but excluding all other facilities owned or to be owned by such companies"; and note the Boundary Map of the CFD 04-01 is the map presented to the board on the evening of June 16, 2004 (include the open space in APN 19-370-07): 1 Minutes: June 16, 2004 a.) Petition Requesting Initiation of Proceedings For The Establishment of a Commu- nity Facilities District and Waiving Certain Rights In Connection Therewith (Gray's Crossing) b.) Community Facilities District Funding And Reimbursement Agreement (Gray's Crossing) c.) Resolution Of The Board Of Directors Of The Truckee Donner Public Utility Dis- trict Approving Funding And Reimbursement Agreement For Community Facilities District d.) Resolution of Intention to Establish Truckee Donner Public Utility District Commu- nity Facilities District No. 04-1 (Gray's Crossing) and to Authorize the Levy of a Special Tax Within Said Community Facilities District '* e.) Resolution of Intention to Incur Bonded Indebtedness (Gray's Crossing) ROLL CALL: Director Sutton, no (concern about a public utility agency providing the financial mechanics to build and relocate investor owned utilities); Director Maass, recused; All other Di- rectors, aye. SO MOVED. CONSIDERATION OF BIDS RECEIVED AND POSSIBLE AWARD OF A CONTRACT FOR CONSTRUCTION OF THE DONNER LAKE SERVICES CONTRACT A Director Van Gundy moved and Director Aguera seconded, a motion to award the Installation of Services for the North Shore of Donner Lake- contract A, as modified by one addendum prior to the bid opening, to Hard Line Excavating, in the amount of$608,610.00. ROLL CALL: All Directors, aye. SO MOVED. CONSIDERATION OF A CONTRACT CHANGE ORDER TO THE DISTRICT PIPELINE RE- PLACEMENT PROJECT -2004 Director Hemig moved and Director Van Gundy seconded, a motion to authorize the Contract Change Order #1 (covering 7 changes) for the District Pipeline Replacement-2004 Project, in the amount of $77,354.72 to Herbert Suter Construction. This brings the total contract to $527,336.72 ROLL CALL: All Directors, aye. SO MOVED. WORKSHOP DISCUSSION OF THE STATUS OF THE BROADBAND BUSINESS UNIT IMPLEMENTATION Mr. Holzmeister stated there are three activities now happening simultaneously: • going to bid and obtaining bids for construction • accessing a firm to rate the COP's • complying with the final LAFCo documents that activated latent power. At the July 15 LAFCo meeting, the District will request an extension of time to initiate service from the initial 2005 requirement. It is possible the District will not actually be initializing service by 2005 and the finance team feels this is a condition we need to satisfy before funding. As the District gets closer to the actual financing, we are developing and perfecting the bond funding. Some costs have increased, some costs have been moved out of operating to financ- ing and there have been interest rate reductions. Mr. Holzmeister will present a thorough de- tailed evaluation of the broadband numbers at the July board meeting workshop. 2 Minutes: June 16, 2004 CONSIDERATION OF A REPORT ON BIDS RECEIVED AND POSSIBLE ACTION REGARD- ING CONSTRUCTION OF THE FIBER-TO-THE-USER SYSTEM: CONTRACTS A AND B. Director Sutton asked about whether the District had "awarded" a contract to Wave7 for equipment. President Maass clarified that Wave7 was not awarded a contract, but named as low bidder- this same process is being used for the Board action at this time. Director Sutton wanted to point out that the District does intend to directly purchase millions of dollars worth of equipment. Director Van Gundy moved and Director Hemig seconded, a motion to: a) Name Tetra Tech as the Lowest Responsive and Responsible Bidder for the Fiber to the User System-Contract A, as modified by three Addendum prior to the Bid Opening, in the amount of $4,196,558.75. Issuance of the Notice of Award shall not occur until the District has completed final LAFCo approvals, secured financing for the project and the Board has formally decided to proceed with construction of the Project. b) Reject the bid by Tetra Tech for the Fiber to the User System-Contract B as non responsive c) Waive the issue of late submittal of the Debarment Certification by MasTec in its Bid for the Fiber to the User System-Contract B and consider the Bid responsive. d) Name MasTec as the Low Bidder for the Fiber to the User System-Contract B, as modified by three Addendum prior to the Bid Opening, in the amount of $2,163,747.11. Issuance of the Notice of Award shall not occur until the District has completed final LAFCo approvals, secured financing for the project and the Board has formally decided to proceed with construction of the Project. ROLL CALL: Director Sutton, no; All other Directors, aye. SO MOVED. CONSIDERATION OF A PROPOSAL FROM DOMINION BOND RATING SERVICE TO PER- FORM SERVICES RELATED TO RATING OF THE BROADBAND COP ISSUANCE Director Van Gundy moved and Director Hemig seconded, a motion to authorize the District Manager to enter into a Letter of Understanding with Dominion Bond Rating Service, Inc to secure them as the District's Rating Agency for the FTTU network in the amount of $85,000 as an initial aggregate rating fee and a $20,000 annual structure surveillance fee during the term of transaction. ROLL CALL: Director Sutton, no (does not agree with the process of this project); All other Di- rectors, aye. SO MOVED. WORKSHOP DISCUSSION OF POSSIBLE GRANT OF ACCESS EASEMENT TO HAROLD WILLIAMS ET AL. Mr. Neil Kaufman explained that the Donner Lake Pipelines project identified the need to aban- don the existing water pipe and removal of existing overhead electrical wires on the District's Greenpoint Springs property. Construction of a new water pipeline and electrical conduits would require a new easement across the northwest corner of the Harold Williams property that lies due south of the District's property. In return for granting the District a new easement, the Wil- liams family has requested to be granted an access easement across the Greenpoint Springs property. Mr. Kaufman has a number of conditions that must be met to accomplish this. 3 Minutes: June 16, 2004 The Board agreed to allow staff to continue discussion with the Williams family regarding acqui- sition of a new utility easement and bring an easement agreement back to the Board for ap- proval. STAFF REPORTS There was no action taken. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 9:08 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT G^ James 6. Maass, President Prepared by a IJ Z&eg '/'(' Barbara Cahill, eputy District Clerk v bhc 4 Minutes: June 16, 2004