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HomeMy WebLinkAbout2001-03-21 Min - Board REGULAR MEETING March 21, 2001 In accordance with District Code Section 2.08.010 the TDPUD minutes are action only minutes. All Board meetin s 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 7:05 PM in the TDPUD Board room by Vice President Aguera. ROLL CALL: Directors Joe Aguera, Patricia Sutton, Nelson VanGundy and Ron Hemig were present; Director James Maass was absent. EMPLOYEES PRESENT: Bob Quinn, Mary Chapman, Ed Taylor, Peter Holzmeister, Steven Hollabaugh, Alan Harry, Kathy Neus, Neil Kaufman, Joe Horvath and Susan Craig CONSULTANTS PRESENT: Engineering Consultant Keith Knibb; Attorneys Steve Gross and Andy Morris. OTHERS PRESENT: Frank and Juanita Schneider, David Knickerbocker, Mark Thomas, David Westcoff and Peggy Bowker. PUBLIC INPUT There was no public input. PRESENTATION BY NIMBUS ENGINEERING ON: Development of Martis Valley Well Preliminary findings of groundwater availability study David Westcoff and Peggy Bowker of Nimbus Engineering were present and updated the Board on the development of the new Martis Valley well. The developmental and test pumping have been underway since March 12 and the projected yield of the well is 2,400 GPM maximum and 2,000 for 72 hours. The actual figure should be available in three or four days. Ms. Bowker gave a status report on the evaluation of the availability of water in the ground wa- ter basin. A copy of Nimbus' summary is attached for reference. There was some discussion regarding the term safe yield. It is a term that is in some disfavor in the hydrogeology field. Hydrogeologists now use terms such as sustainable yield or managed yield. The Board will conduct a workshop on the Martis Valley groundwater availability study at the April 18, 2001 meeting. DISCUSSION OF DISTRICT FINANCIAL POSITION, POSSIBLE ACTION: Report on financial position Consideration of reclassifying the inter-fund loan and establishing a new intra-fund loan within the water fund Consideration of taking appropriate action to meet the credit requirements of Idaho --- Power Company Consideration of a report on electric connection charge schedule, possible scheduling of a public hearing 3/21/01 Pagel Mr. Holzmeister made a presentation on the status of the District's financial position. He noted that the District is pursuing business opportunities such as Donner Lake water, Glenshire water and broadband services. Each of these efforts offers a future revenue stream, but it costs money to develop them. The District is investing in its water system supply by developing new wells and transmission lines. Developers are approaching the District about water and electric service. We have en- tered into a long-term contract for the purchase of wholesale power. The District needs to con- sider an electric rate increase to reflect the new wholesale power contract. There is the ability to sell conduit and land to generate cash. The District has increased its water connection and fa- cilities fees and staff is suggesting an increase in the electric connection fees. The Board needs to analyze the District's financial condition regularly and make decisions based on the complete picture. A copy of the materials presented by Mr. Holzmeister are attached to these minutes. In reviewing the status of the District's cash flows, staff has discussed having the water depart- ment pay off the electric department for the loan that the Board authorized in 1996 to fund the replacement of the Donner Trails pipeline. The money was borrowed from the electric depart- ment bulding fund. Since it may be necessary to draw on these funds to either fund the letter of credit with Idaho Power or provide a fund to support cash flow activity during this construction season, it may be appropriate to transfer the loan from a loan against the electric building fund to a loan against the reserve for future water meters fund. Staff is recommending that the trans- action be done as of December 31, 2000 and that the same repayment schedule be maintained. Director Hemig moved, and Director Van Gundy seconded, that the Board authorize staff to use -- the reserve for future meters fund in the water department to pay off its debt to the electric de- partment in the amount of$567,467.82 as of December 31, 2000. The same repayment sched- ule is to be used to repay the debt from the water department general fund to the reserve for future meters fund. ROLL CALL: Maass, absent; Sutton, no; all other Directors, aye. SO MOVED. Mrs. Chapman reviewed the various options available to meet the Idaho Power requirement of either a $1.5 million letter of credit or a consumer deposit in the amount of $1.5 million. After some discussion, Director Van Gundy moved, and Director Hemig seconded, that the Board authorize staff to continue to pursue an unsecured letter of credit with US Bank, or other finan- cial institution, and to bring back the appropriate documents for the Board to a Steve Gross' review. ROLL CALL: all Directors, aye. SO MOVED. Pprove subject to Electric Superintendent Bob Quinn advised that the Board should correct the current electrical connection fees. Rising labor, material and overhead costs have placed the District in the posi- tion of losing revenue when customers request power. He is proposing one connection fee for both overhead and underground electrical services. The difference in costs between the two is becoming minimal and one fee would be less confusing to applicants as well as staff. Connec- tion fees include shared costs of the installed transformer, labor and material costs to install the individual service, administrative costs for setting up the account and meter costs. Mr. Quinn reviewed the current fee, calculated costs and proposed fee with the Board. After some discussion, Director Van Gundy moved, and Director Hemig seconded, that the Board direct that a public hearing to consider increasing electrical connection fees be set for April 18th. Director Sutton moved that the motion be amended and that the hearing on the 18th be to con- sider the calculation of costs on the different classes of connections. Motion failed. ROLL CALL on the original motion: Maass, absent; Sutton, abstain; all other Directors, aye. SO MOVED. 3/21/01 Page 2 CONSIDERATION OF A REPORT FROM STAFF ON DIALOGUE WITH GLENSHIRE MU- TUAL WATER COMPANY; POSSIBLE ACTION Mark Thomas, Peter White, Harold Morgan, David Knickerbocker and David Gardner from Glenshire were present. Mr. Holzmeister has spoken with Mark Thomas, General Manager of the Glenshire Mutual Wa- ter Company. Glenshire is interested in becoming part of the TDPUD water system because of problems they are experiencing with water quality issues. They would like to have a transfer take place in June of this year if practicable. They will be sending a ballot to their shareholders asking for approval of the transfer on April 3rd or 4th. Approval would require at least 20% of their shareholders to cast ballots and they need a majority vote of the ballots cast. If the Board is interested in serving Glenshire, a formal transfer agreement needs to be drawn up. Navigant Consulting has presented a proposal to perform a due diligence study on the Glen- shire Water System. CONSIDERATION OF SALE OF DISTRICT-OWNED LAND This matter was discussed at the last meeting. The Directors are going to go out and visit each property. Staff will investigate to see if the snow has melted on all the sites. The Haddock and Sassarini land issues were briefly discussed. No action was taken at this time. MARTIS VALLEY PIPELINE PROJECT Consideration of bids and possible award of a contract for purchase of the 24 inch pipe material Consideration of a contract for construction management and inspection services Mr. Kaufman noted that bids were received and opened on March 15, 2001 for pipe and materi- als for the Joerger Drive Transmission Pipeline Project. After brief discussion, Director Van Gundy moved, and Director Hemig seconded, that the Board award the purchase of 24" pipe to US Pipe & Foundry and award the purchase of fittings, spe- cials and other appurtenances to Western Nevada Supply Company. ROLL CALL: all Directors, aye. SO MOVED. Staff is requesting the approval of a contract for services with Sauers Engineering for the con- struction engineering and inspection for the Martis Valley Well#1 pump station and pipeline pro- ject. Director Hemig moved, and Director Van Gundy seconded, that the Board approve the en- gineering services agreement with Sauers Engineering for construction engineering and con- struction inspection in an amount not to exceed $30,000. ROLL CALL: all Directors, aye. SO MOVED. CONSIDERATION OF A REQUEST FROM SAUERS ENGINEERING FOR ADDITIONAL COMPENSATION RELATED TO PREPARATION OF THE ENVIRONMENTAL DOCUMENTS FOR THE DONNER LAKE WATER SYSTEM PROJECT Sauers is asking that the Board consider increasing the compensation for preparation of the Donner Lake CEQA because they had to do additional work in revising the documents to elimi- nate the treatment plant. Director Van Gundy moved, and director Hemig seconded, that the Board approve submitted by Sauers Engineering for an increase in their authorization of$4,081 76 for p epa at 3/21/01 Page 3 tion of the Donner Lake environmental documents. All Directors MOVED. , aye, by voice vote. SO CONSIDERATION OF BIDS RECEIVED FOR CONSTRUCTION OF ELECTRIC SYSTEM FA- CILITIES UNDER HIGHWAY 267, POSSIBLE AWARD OF A CONTRACT Mr. Horvath noted that bids have been opened and analyzed for the installation of conduit across Highway 267. The project consists of the installation of approximately 570 feet of electri- cal conduit beneath the new bypass immediately north of Interstate 80 in Truckee. This work is part of the electrical relocation work required by CalTrans to accommodate the construction of the bypass through Truckee. It could not be accomplished with the other electrical relocation work completed during 1999 and 2000 because the CalTrans contractor first had to make a cut of approximately 26 feet below existing grade in the area where the new 267 bypass crosses I- 80. That work is now complete so that trenching and installation of electrical conduits can begin. Director Van Gundy moved, and Director Hemig seconded, that the Board approve the project to the low bidder, Dale Burt Construction, for a not-t0-exceed price of $18,619. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF BIDS RECEIVED FOR PURCHASE OF A METER TEST BENCH, POSSIBLE AWARD OF A CONTRACT Funds were set aside in the 2001 budget for a new electric meter test bench. The District issued a call for bids, advertised and mailed invitations to test bench manufacturers. One bid was re- ceived; it meets all of the specifications with no exceptions. Director Hemig moved, and Director Van Gundy seconded, that the Board award the bid to Util- ity Test Equipment Company for one meter test bench and calibration system in the amount of $27,850. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF A REQUEST FROM NEVADA COUNTY LAFCO FOR ADDITIONAL FUNDS TO CONTINUE TO PROCESS THE DISTRICT'S APPLICATION FOR ACTIVATION OF LATENT POWER The District is paying the expenses LAFCo incurs to process its application for activation of the latent communications power. Their letter of February 14 notes they have spent the District's $10,000 deposit and they are requesting an additional $10,000. Director Hemig moved, and Director Van Gundy seconded, that the Manager be authorized to pay up to $10,000 to LAFCo after verifying the validity of the amount. All Directors, aye, by voice vote. SO MOVED. DISCUSSION OF WATER SYSTEM CONSTRUCTION AND MATERIAL STANDARDS Water Superintendent Taylor noted that the last review of the water system construction and material standards was in 1985. He complimented Mike Connell and Neil Kaufman for doing a very thorough, very complete update, which is basically a codification of the standards. The Board also complimented staff for preparing this document as well as the water master plan up- date. The standards will be discussed at a future meeting. MONTHLY STAFF REPORTS Copies of the monthly staff reports are attached to these minutes. 3/21/01 Page 4 CLOSED SESSION Conference with legal counsel —existing litigation pursuant to Government Code Section TDPUD 54956.9(a), pending litigation, two cases: TDPUD vs. USA Media and USA Media vs. Discussion with legal counsel regarding anticipated litigation, Government Code Section 54956.9, three (3) cases Conference with legal counsel—existing litigation pursuant to Government Code Section 54695(a), grievance of Local 1245 of the IBEW The Board adjourned to closed session at 9:56 PM. RETURN TO PUBLIC SESSION The Board returned to public session at approximately 10:30 PM. No action was reported as a result of closed session. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 10:31 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT J s A. Maass, Pre i ent Prepared by Susan M. Craig, Deputy District Clerk smc 3/21/01 Page 5