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Home My WebLink About2006-12-20 Min - Board REGULAR MEETING December 20, 2006 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 Perpetually 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 7:00 PM in the TDPUD Board room by President Taylor. ROLL CALL: Directors Joe Aguera, Ron Hemig, Patricia Sutton, Tim Taylor and Bill Thomason were present. EMPLOYEES PRESENT: Nancy Waters, Jessica Wilson, Mary Chapman, Kim Szczurek, Neil Kaufman, Kathy Neus, Ed Taylor, Peter Holzmeister and Barbara Cahill CONSULTANTS PRESENT: Steve Gross and Sandra McDonald OTHERS PRESENT: Frank and Juanita Schneider, Pat Davison, Pat Waite and Ellie Hyatt PUBLIC INPUT There was no public input. ADMINISTRATION OF THE OATH OF OFFICE Peter Holzmeister administered the oath of office for the newly elected Director J. Ron Hemig. CONSIDERATION OF ADOPTION OF A RESOLUTION AMENDING THE DISTRICT'S INVESTMENT POLICY. This matter involves adopting a revised policy for investing District cash in response to a recommendation made by the District's auditors. Director Hemig moved and Director Aguera seconded, a motion to adopt a resolution approving an updated District investment policy. ROLL CALL: Director Sutton, no; All other Directors, aye. SO MOVED. CONSIDERATION OF AUTHORIZING THE TRANSFER OF FUNDS TO REIMBURSE LAND SALES TRUST FUND FOR MONEY BORROWED FOR CONSTRUCTION OF THE DONNER LAKE WATER SYSTEM PROJECT. This matter involves restoring funds to a District restricted fund known as the Land sales Trust Fund. The funds had been temporarily borrowed from the Land Sales Trust Fund to pay a portion of the reconstruction of the Donner Lake water system. Director Hemig moved and Director Sutton seconded, a motion to withdraw the funds necessary from the Certificate of Deposit Series 2006 Bond Proceeds to repay the internal loan (Donner Lake System Project) in full in the amount of approximately $600,000 to the General Fund. ROLL CALL: All Directors, aye. SO MOVED. Director Hemig moved and Director Aguera seconded, a motion to withdraw the funds necessary from the Certificate of Deposit Series 2006 Bond Proceeds to repay the internal loan (Donner Lake System Project) in full in the amount of approximately $2,500,000 to the Land Sales Trust Fund. ROLL CALL: All Directors, aye. SO MOVED. 1 Minutes: Dec. 20, 2006 CONSIDERATION OF AUTHORIZING THE DISTRICT TREASURER TO INVEST DONNER LAKE ASSESSMENT DISTRICT FUNDS. This matter involves granting authority to invest cash belonging to the Donner Lake Assessment District in a guaranteed interest account until it is needed to pay Assessment District bonds. Director Hemig moved and Director Aguera seconded, a motion to invest up to $1.8 million in a long term US Treasury or Agency security with a final maturity not to exceed 12/31/2021 from Bond proceeds, Donner Lake Assessment dollars and land sale proceeds; this will cover the final years of State Revolving Fund (SRF) payments. ROLL CALL: Director Sutton, no (concern with no written record of the definition of "Agency Investment'); All other Directors, aye. SO MOVED. CONSIDERATION OF ESTABLISHING A COP OVERSIGHT COMMITTEE. This matter involves establishing committee to oversee and report to the Board on projects and expenditures of funds from the 2006 Certificate of Participation project fund. Director Hemig moved and Director Sutton seconded, a motion to establish a Certificate Of Participation oversight committee which reports directly to the Board of Directors; appoint Bill Thomason, Ed Taylor as an advisor/ex-officio/non-voting member and a member from CATT to serve on the COP oversight committee; and ask the committee to prepare a report to the Board recommending what its role could be. ROLL CALL: All Directors, aye. SO MOVED. CONSIDERATION OF A REPORT ON BIDS RECEIVED AND POSSIBLE AWARD OF A CONTRACT FOR THE PURCHASE OF WATER SYSTEM EMERGENCY GENERATORS. This matter involves entering into a contract for purchase of electric generators to be used at water pump stations during emergency situations. Director Aguera moved and Director Thomason seconded, a motion to award the purchase of seven Emergency / Standby Power Systems (Generator Sets) to Cummins Rocky Mountain LLC of Sparks, NV. in the total amount of $193,550.00 (tax not included); fund from the Water Department 2006 COP funds; and authorize staff to transfer funds from the 2006 COP. ROLL CALL: All Directors, aye. SO MOVED. CONSIDERATION OF A REPORT ON BIDS RECEIVED AND POSSIBLE AWARD OF A CONTRACT FOR CONSTRUCTION OF THE DISTRICT PIPELINE REPLACEMENT PROJECT FOR 2007 -CONTRACT A. This matter involves entering into a contract for the replacement of leaking water lines in the Tahoe Donner subdivision, funded by the 2006 COP. Director Aguera moved and Director Hemig seconded, a motion to award the District Pipeline Replace ment-2007-Contract A to Teichert Construction in the amount of $1,766,154.00; and authorize the transfer of COP funds to the cover the cost of the project. ROLL CALL: All Directors, aye. SO MOVED. CONSIDERATION OF NOMINATING A CANDIDATE FOR SPECIAL DISTRICT MEMBER ON THE NEVADA COUNTY LOCAL AGENCY FORMATION COMMITTEE. This matter involves -- nominating a person to fill a vacancy on the Nevada County LAFCo representing special districts. No action taken. 2 Minutes: Dec. 20, 2006 WORKSHOP ITEM DISCUSSION OF GASB 45 REQUIREMENTS RELATED TO OTHER POST RETIREMENT BENEFITS. This matter involves developing a method for handling funds set aside to pay for benefits paid to retired District employees. Kim Szczurek gave a presentation about Governmental Accounting Standards Board (GASB) Statement No. 45 which addresses the accounting and reporting for certain "other" post retirement employee benefits: • The PUD must comply with the rule no later than 2008 • Early implementation reduces future costs and liability • Why does the PUD have to do this: o Need to recognize employees earn this benefit while they work o Matches expenses and funding to worked years o Keeps the PUD from having a big unfunded liability in the future with no way to pay for it • PUD's financial impact: o$3.5M ($2.3M past service plus $118,200 for each year of current service) o Can accumulate the $15 over 30 years, paying annually along with the current payment o Place in a trust fund to earn interest to reduce funding from rates • Funding requirements: set up irrevocable trust fund and use longer-term investing • Recommendations: o Implement accounting and reporting guidelines for GASB 45 in 2007 o Begin funding liability in 2007 The board agreed this item should come back as an action item at the next meeting. ROUTINE BUSINESS TREASURER'S REPORT Approval of the report: Director Hemig moved, and Director Thomason seconded, that the Board approve the month ended November 2006. ROLL CALL: All Directors aye, by voice vote. SO MOVED Approval of disbursements: Director Hemig moved, and Director Thomason seconded, that the Board approve the November 2006 disbursements report. ROLL CALL: Director Sutton, no (feels the Board should approve the checks before they are mailed); All other Directors, aye. SO MOVED. STAFF REPORTS No action taken CONSIDERATION OF MINUTES: OCTOBER 25, NOVEMBER 1 AND 15, 2006 Director Thomason moved, and Director Aguera seconded, that the Board approve the minutes of October 25, November 1 and 15, 2006. ROLL CALL: All Directors aye, by voice vote. SO MOVED. 3 Minutes: Dec. 20, 2006 CLOSED SESSION CONFERENCE WITH LABOR NEGOTIATOR: SECTION 54957.6 OF THE GOVERNMENT CODE. DISTRICT REPRESENTATIVE: PETER HOLZMEISTER. EMPLOYEE REPRESEW TATIVE: IBEW LOCAL 1245. SECTION 54957 OF THE GOVERNMENT CODE. PUBLIC EMPLOYEE PERFORMANCE EVALUATION - TITLE: GENERAL MANAGER. RETURN TO OPEN SESSION No action taken. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at midnight. TRUCKEE DONNER PU UTILITY DISTRICT Tim F. Taylor, Pres e Prepared by Barbara Cahill, Deputy District Clerk bhc 4 Minutes: Dec. 20, 2006