The URL can be used to link to this page

Home My WebLink About2009-12-16 Min - Board REGULAR MEETING December 16, 2009 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 availabWor 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 6:00 PM in the TDPUD Board room by President Bender. ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig and John Hillstrom were present. Director Pat Sutton was absent. PLEDGE OF ALLEGIANCE General Manager Holley led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT: Mary Chapman, Jim Wilson, Joe Horvath, Neil Kaufman, Michael Holley and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Juanita Schneider .- CHANGES TO THE AGENDA There were no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Hemig said he and Stephen Hollabaugh had an organizational meeting with Lassen PUD and UAMPS regarding the Municipal Utility Financing Authority. He is the chair, Jay Doud from LMUD is the vice chair, Doug Hunter of UAMPS is the secretary and Jackie Combs of UAMPS is the assistant secretary. The group went through the framework on how to operate in the future as they look at the opportunities to purchase forward pricing of natural gas. Meetings will be monthly with the next meeting on January 27, 2010. Director Hillstrom stated he plans to attend the NCPA strategic workshop in January. He is also glad the PUD has been actively trimming trees, and we are not like PG&E who has had a 5-day outage. Director Aguera will also be attending NCPA strategic workshop in January. President Bender will also be attending the NCPA strategic workshop. He announced that the regularly scheduled Board meeting on January 6, 2010 has been cancelled, and the Public Hear- ing for the 2010 Pipeline CEQA has been rescheduled for January 20, 2010. He congratulated PUD employees for their accomplishments: Jennifer Mason, Accounting Department, received her Associates of Arts Degree, and Chuck Gaszo finished the Assistant Mechanic in Training Program. The Natural Gas conversion from propane saved the District $2,000 this last month. 1 Minutes: Dec 16, 2009 CONSENT CALENDAR APPOINT TREASURER OF THE DISTRICT FOR PURPOSES OF INVESTMENT This item involves the delegation of investment authority to the Treasurer for 2009 pursuant to the District's policy as defined in Chapter 3.20 Investments. Director Hillstrom moved, and Director Aguera seconded, that the Board approve the consent calendar. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED ACTION CONSIDERATION OF ANNUAL PURCHASE ORDERS AND CONTRACTS This item involves the authorization of annual purchase orders and contracts for 2010. Director Hemig moved, and Director Hillstrom seconded, that the Board: • Authorize annual purchase orders to the sole source vendors listed on Attachment 1 totaling $576,621 • Authorize annual purchase orders to the State of California competitively bid vendors listed on Attachment 2 totaling $80,500 • Authorize annual purchase orders to extend the contracts of vendors listed on Attachment 3 totaling $145,500 • Aggregate materials & asphalt purchase for FY10 to Teichert Aggregates in the amount of $52,297.50 • Electric line clearance & tree trimming for FY10 to Loggers Unlimited Inc for a not to exceed price of$250,000 ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED CONSIDERATION OF A RESOLUTION ACCEPTING FINAL COMPLETION AND A CLOSEOUT CHANGE ORDER FOR THE DISTRICT PIPELINE REPLACEMENT — 2009 PROJECT — CONTRACT C This item involves the closeout of 2009 Water Pipeline Replacement Project C with Cruz Construction and recording of the Notice of Completion. Director Hillstrom moved, and Director Aguera seconded, that the Board authorize Contract Change Order No. 4 to the District Pipeline Replacement—2009 — Contract C project in an amount of $53,304.18; and adopt a resolution accepting the District Pipeline Replacement — 2009 — Contract C project as complete and authorize the filing of the Notice of Completion. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED CONSIDERATION OF A RESOLUTION ACCEPTING THE FINAL COMPLETION AND CLOSEOUT CHANGE ORDER FOR THE DISTRICT PIPELINE REPLACEMENT — 2009 — CONTRACT C PROJECT CONTRACTED WITH AM-X CONSTRUCTION This item involves the closeout of the Skislope Way Water Pipeline and Electrical Pipeline Project with AM-X Construction and recording the Notice of Completion. Director Hillstrom moved, and Director Aguera seconded, that the Board authorize Contract Change Order No. 1 to the District Pipeline Replacement — 2009 — Skislope Way project in an amount of $35,899.94; and adopt a resolution accepting the District Pipeline Replacement — 2009 — Skislope Way project as complete and authorize the filing of the Notice of Completion. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED 2 Minutes: Dec 16, 2009 WORKSHOPS DISCUSSION OF POTENTIAL FORECLOSURES IN THE COMMUNITY FACILITIES DISTRICTS This workshop relates to a discussion with the Board relating to delinquent CFD assessments in Gray's Crossing and the Board's responsibilities relating to the foreclosure process. Mary Chapman gave a presentation: • Background / History 0 2003 District formed a Communities Facilities District— Old Greenwood 0 2004 District formed a Communities Facilities District— Gray's Crossing 0 2005 District authorized the sale of additional Gray's Crossing bonds o Bonds were sold to pay for a portion of the infrastructure in Old Greenwood and Gray's Crossing • New Information o Bond liens are superior to mortgage liens o District is not at risk for defaults o The criteria for when the Board must proceed with foreclosure: ■ A parcel is past due more than $7,500 ■ If more than 5% of the amount billed is past due, all past due parcels are subject to foreclosure o Old Greenwood: ■ 2 property owners owe from 2007/08 tax year ■ 7 property owners owe from 2008/09 tax year ■ Total assessments past due are $29,618.46 ■ No parcels owe more than $7,500 ■ Total past due does not exceed 5% of amount billed ■ Board may proceed with foreclosure on the delinquent parcels o Gray's Crossing: ■ 2 property owners owe from 2006/07 tax year ■ 5 property owners owe from 2007/08 tax year ■ 30 property owners owe from 2008/09 tax year ■ Total assessments past due are $126,996.27 ■ Three parcels owe more than $7,500 ■ Total past due exceeds 5% of amount billed ■ Board must proceed with foreclosure on the delinquent parcels o Willdan Financial Services administers the CFDs o All delinquent property owners have received reminder letters, demand letters and pre-foreclosure letters from Willdan Financial Services o Nevada County requires delinquent parcels to be removed from tax rolls o Notice of Intent to Remove Special Tax Installments from Tax Roll has been recorded on each parcel o Susan Feller of Sherman & Feller was recommended as a foreclosure attorney o Draft resolution ordering judicial foreclosure of delinquent special taxes pursuant to the Mello-Roos Community Facilities Act of 1982 o Next Board meeting, proceed with the foreclosure process which will require executing the resolution and entering into a fee agreement to retain special counsel 3 Minutes: Dec 16, 2009 Director Ron Hemig stated he has no conflict with this item. Counsel Gross also stated he has no conflict with this item as the parcels involved are not owned by the original developer that Porter Simon represented. There was no public comment. Board discussion: • Is there a choice as to whether we may proceed with foreclosures or do we have to • We may have to proceed and begin the process • Would like to see the Old Greenwood delinquency report • Grays Crossing detail shows a number of properties are bank owned- why weren't the past due assessments transferred at time of ownership? • The delinquency seems to calculate out that the past due is $1,600 to $2,900 per person • Would Old Greenwood meet the foreclosure procedure • So Wilden is our agency and does all the bookkeeping • Are they all just vacant parcels—or have some of them been build on • What is the process like if no one pays- how does ownership change • What is the estimated cost to proceed REVIEW OF INVESTMENT POLICY This involves the annual review of the District's Investment Policy. Mary Chapman gave a presentation: • Governmental Accounting Standards Board (GASB 40) describes local government investment reporting requirements, and addresses required disclosure of the District's policy relating to the investment of public funds • California State law provides a list of authorized investments and requires delegation of investment duties to be done annually • The District's policy addressing specific investment priorities and risk are described in Chapter 3.20.012.2 Investments/Statement of Objectives: o Safety— primary objective of the investment program is the "Preservation of Principal" o Liquidity— investment maturity should meet the District's cash flow needs o Yield — obtain an acceptable rate of return after considering safety of principal and liquidity • Treasurer is authorized to invest District funds in the following: o US Bank— interest bearing checking and savings o Local Agency Investment Fund (LAIF)— operating funds o Board approved investments allowed by State law o Temporary investment in money market funds or LAIF pending longer term investment decisions approved by the Board • Reporting: o Monthly Treasurer's Report— includes monthly investment activity and balances o Quarterly Investment Report — includes yield, term, earnings and the names of the investment depositories • District's policy requires annual policy review for: o Consistency with overall objectives— preservation of principal, liquidity, yield o Policy's relevance to current law and financial and economic trends o Diversification of the investments and custodial risk of the portfolio o State law requires renewing the delegation of authority to the Treasurer to perform investment duties 4 Minutes: Dec 16, 2009 • District investments have not suffered significantly as a result of the downturn in the fixed income market • The December quarterly report will have an update of the change of fair market value of each investment • No recommendation to revise the Investment Policy • No recommendation to move investments at this time There was no public input. Board discussion: • Information is very clear- not much we can do about interest rates • Does not seem we have suffered greatly- we have not lost money • It is a good thing the District did not get into auction rate bonds • If the balance in US Bank is large, how does FDIC work • Is LAIF secure ROUTINE BUSINESS TREASURER REPORT: NOVEMBER, 2009 Approval of the report: Director Hemig moved, and Director Aguera seconded, that the Board approve the treasurer's report for the month ended November 30, 2009. ROLL CALL: Director Sutton, absent; All other Directors, aye. SO MOVED. Approval of disbursements: Director Aguera moved, and Director Hemig seconded, that the Board approve the November 2009 disbursements report. ROLL CALL: Director Sutton, absent; All other Directors, aye. SO MOVED. APPROVAL OF MINUTES FOR NOVEMBER 18 AND DECEMBER 2, 2009 Director Hillstrom moved, and Director Hemig seconded, that the Board approve the minutes of November 18 and December 2, 2009. ROLL CALL: Director Sutton, absent; All other Directors, aye. SO MOVED ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 7:12 PM. TRUC DONNER PUBLIC UTILITY DISTRICT J Be a ent Prepared ry, G/� Cu C� ! Barbara Cahill, Deputy District Clerk 5 Minutes: Dec 16, 2009