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HomeMy WebLinkAbout1984-11-05 Min - Board 117 REGULAR FETING November 5, 1984 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Maass at !� approximately 7:00 P.M. in the TDPUD Board room. t ROLL CALL: Directors Cooley, Corbett, Duffy, Hamilton and Maass were present. EMPLOYEES PRESENT: Jan Maughan, Pete Silva, Peter Holzmeister and Susan Craig were present. CONSULTANTS PRESENT: Counsel .John M. Phelps. OTHERS PRESENT: Among those present were W. R. Austin, John Minnis, Charles White, Bev Mussetter, Dave Toussaint, Mike Violchini, Phil Flanagan, Richard Moutray, Sue Felce, Doug Felce, Rick Henkel, Evy Henkel, Randy and Vickie Bess, Lee Thomas, Julie Cooley, A. F. Rodrigues and Dick VanLandingham. APPROVAL OF MINUTES After the determination was made that the District is only releasing its interests in the easements being abandoned in favor of the Russells and Lopes, Director Hamilton moved, and Director Corbett seconded, that the minutes of October 1, 1984 be approved as written. All Directors, aye, by voice vote. SO MOVED. Director Duffy moved, and Director Corbett seconded, that the Secretary be directed to prepare the minutes of October 15, 1984 in final form with a correction to paragraph 5 on page 2. Rather than "County standards," the statement should read, "standards suggested by the County Planning Department." All Directors, aye, by voice vote. SO MOVED. Director Hamilton moved, and Director Duffy seconded, that the Secretary be directed to prepare the minutes of October 7-8-9 and 23, 1984 in final form as written. All Directors, aye, by voice vote. SO MOVED. STATEMENT OF GENERAL FUND AND BILLS FOR APPROVAL In response to President Maass' question, Manager Holzmeister verified that the $835,228.13 balance in LAIF and public time deposits is correct. Director Hamilton asked that he be provided with a report of the total expenditures to date for Unit 12, and Mr. Holzmeister agreed to do SO. After reviewing the bills presented for consideration, Director Hamilton moved that payment be authorized; seconded by Director Corbett. SO MOVED by voice vote. MANAGER'S REPORT •-- Tree work Manager Holzmeister reported that the tree trimming program is underway. He indicated he is going to limit the work to that Nahi.ch is essential to maintain the electric lines, and good judgement will be used in determining what is taken. out. There is quite a backlog of work since trimming has not been done for several years. Board meeting packets Mr. Holzmeister suggested that a new procedure regarding preparation of the Board meeting packets be implemented - that the packets be available at noon on the Friday preceding regular meetings, and then be delivered to a location determined by each Director. Following this system, the Board would be assured of having the material for review over 11/5/84 Pg. 1 1].8 the weekend before the meeting. Director Corbett suggested allowing until 2:00 P.M. for pick-up and, if not picked up by then, having the packets delivered. Charles White, present in the audience, stated he feels this is counter productive, and suggested placing a locked box outside the office in which to place Directors' material. ,..� The Board indicated their agreement with Mr. Holzmeister's suggestion. - PLANNING DEPARTMENT NOTICES For informational purposes, Director Corbett advised that Raley's has filed an application with the County to develop the land between Glenshire and Hirschdale, and suggested looking into the matter as it may ultimately solve the Hirschdale water problem. PUBLIC INPUT There was no public input. CORRESPONDENCE There was no correspondence of significance to be reviewed by the Board. COMMITTEE REPORTS No committees met since the last Board meeting. NEW DISTRICT COMPLEX - STATUS REPORT AND POSSIBLE DIRECTION Mr. Holzmeister advised that he has been considering land appraisals on several parcels that are for sale and possibilities as far as a new complex is concerned. However, he noted, the appraisals would take weeks to accomplish, and this combined with having to go through the entire County process for building on a new site, may make staying on the present parcel advisable. More information will be available at the next meeting. GRAND JURY REPORT - DIRECTION AS TO PREPARATION OF OFFICIAL RESPONSE The Chairman noted that, under law, the District is required to respond to the Grand Jury report. It was his suggestion that the Manager and staff prepare an overall draft outlining those areas of the report which have been implemented, those areas which are in the process of being implemented, and those which will not be implemented and related reasons. In addition, that each Director prepare his own statement for attachment to the official response of the District. The Board may then adopt the official response of the District along with each of the Directors' statements. 1 The Board agreed that Mr. Holzmeister prepare a draft letter as suggested by President Maass, and that the matter be placed on the agenda so that each point may be discussed by the Board. CATHODIC PROTECTION PROJECT - UPDATE AND POSSIBLE DIRECTION Manager Holzmeister noted that the District received two proposals relating to cathodic protection - one from Cook Associates and one from Harco Corporation. He recommended referring the proposals to the Water I Committee, and having Harco make a presentation to them concerning the entire range of cathodic protection issues. Mr. Holzmeister advised that when Cook Associates was assigned the job originally, they subcontracted it out to Harco. Harco indicates that, based on what they did before, it still remains a fairly complicated issue. By consensus, the matter was referred to the Water Committee. 11/5/84 Pg. 2 123 TAHOE DONNER SUBSTATION IMPROVEMENTS - STATUS REPORT The Manager stated that, due to a change in weather conditions, he advised prospective bidders on the Tahoe Donner Substation improvements that an award would not be made until spring of 1985. CONSIDERATION OF RESOLUTION AUTHORIZING LEASE BETWEEN TDPUD AND THE ,--- TRUCKEE SANITARY DISTRICT (SPACE AT DONNER VIEW PUMP STATION) Counsel noted that he prepared an agreement between the District and the Truckee Sanitary District for lease of space for telemetry equipment in the Donner View pump station which calls for the standard insurance and indemnification of the District. Mr. Holzmeister advised that Sandel-Avery Engineering will be providing maintenance for the TSD equipment. He also stated that he would prefer that the TDPUD_ take care of the snow removal for access to the pump station because of the District equipment located there. It was decided that if TSD must have access and the road has not been cleared, they may have the snow removed after first obtaining permission from the District. Thereafter, Director Hamilton moved that the resolution authorizing the lease of real property to the Truckee Sanitary District be adopted with the understanding that the District will provide snow removal unless specific permission to do so on occasion is given to the Sanitary District; seconded by Director Corbett. ROLL CALL: all Directors, aye. SO RESOLVED. REA - REVIEW OF LOAN PAYOFF FIGURE - ACCOUNTING SYSTEM; POSSIBLE ACTION Manager Holzmeister noted that, as of September 30th, the amount of principal due to the REA was $234,573.52. Based on interest of 2%, the total due at the end of the year should stand at $235,746.39. He suggested ` the following chronology of events: that the District obtain a letter from the auditors stating what they would charge for a study to change the accounting system; based on this, the Board can compare that cost versus the cost of carrying the loan; if it appears there is a savings, the accounting system could be revised and the loan paid off. Director Duffy moved that the Board authorize the accountants to do such a study relating to the cost effectiveness of paying off the loan. The motion was seconded by Director Corbett. SO MOVED by consensus. PUBLIC HEARING CONSIDERATION OF 1985 BUDGET - CONSIDERATION OF ORDINANCES INCREASING ELECTRIC AND WATER RATES FOR 1985 For the benefit of the audience, Mr. Holzmeister summarized briefly the proposed budget and ordinances increasing water and electric rates. He reviewed the current and proposed rates and provided comparisons with other utilities. The public hearing was opened at 7:42 P.M. Questions posed by Mssrs. Coster, Gervais, Marshall and Ms. Burgoon were answered. Charles White clarified that the water rate charged by Donner Lake Utility Company includes a seven-year surcharge. Director Corbett noted that the PUD is changing its style from crisis management to planned management. President Maass provided historical information relating to past PUD increases to its customers, and wholesale increases imposed upon the District by Sierra Pacific. No objections from the public concerning the proposed budget or rate increases were recorded and, there being no further comments, the hearing was closed at 8:38 P.M. after motion made, seconded, and duly passed. Director Hamilton moved, and Director Corbett seconded, that the 1985 budget as proposed, be adopted. ROLL CALL: all Directors, aye, with 11/5/84 Pg. 3 124 the exception of Director Cooley who voted no, stating he feels the proposed budget is too excessive at this time. SO MOVED. With respect to the proposed ordinances increasing rates, Director Cooley suggested to the Board that the increases be implemented in April or May rather than with the January billing cycle. Director Corbett moved, and Director Hamilton seconded, that the Board adopt the ordinance increasing electric rates by 5%, with the fuel charge remaining as a pass-through from Sierra Pacific. ROLL CALL: Director Cooley, no; all other Directors, aye. SO ORDAINED. Director Corbett moved, and Director Duffy seconded, that the Board adopt the ordinance increasing water rates by 15%. ROLL CALL: Director Cooley, no; all other Directors, aye. SO ORDAINED. HIRSCHDALE WATER SYSTEM IMPROVEMENTS - DISUCSSION AND POSSIBLE DIRECTION Manager Holzmeister summarized the various options available regarding the Hirschdale water problems. 1) Meet the demands of Mr. Rodrigues - lease the land, develop a new water system, with the rental defraying Mr. Rodrigues' assessment. At the end of the lease period, the District could be required to vacate the property, forcing the District into condemnation proceedings. Another problem with this option is that the property owners would be required to pay all the costs that would be allocated to the mobile home park. Mr. Holzmeister recommended rejecting this option. 2) Exclude Mr. Rodrigues' property from the water system upgrade and form an assessment district with the remaining property owners. The Manager suggested dismissing this option since the remaining property owners would be financing the water system on their own, and it would require a more detailed engineering study to determine an alternate site for a well and storage tank. 3) Proceed with voluntary formation of the assessment district and secure the needed property by eminent domain. This option would solve the entire water problem at Hirschdale; however, there are two difficulties. The condemnation proceeding would probably be lengthy. During that period, the property owners wouldn't know what their i assessment would be. The second difficulty is that, without knowing the amount of the assessment, the property owners would be reluctant to voluntarily form the assessment district. Mr. Holzmeister recommended rejection. 4) Proceed with involuntary formation of the assessment district and secure needed property by eminent domain. This option solves the entire water problem at Hirschdale, but there are problems. The PUD can't force the formation of an assessment district unless the County Health Officer declares the existing water system to be a health hazard. This has not been done formally. The property owners at Hirschdale could be expected to oppose any forced solution to their problem, especially if the costs are unknown until after the district is formed and the condemnation proceedings are completed. Mr. Holzmeister noted this option should not be adopted unless there is overwhelming support expressed by the property owners, and the property owners are adequately informed of the potential costs they would bear. 5) Cancellation by the TDPUD of plans to upgrade the Hirschdale water system. This option leaves the water problem unsolved. The solution would be postponed until the County declares the water system a health hazard and assumes responsibility for correcting the problem, or until Mr. Rodrigues proposes a more reasonable set of terms for sale of the property. Mr. Holzmeister noted that, if the property owners do not give overwhelming and unqualified support to Option No. 4, this option is the preferred solution at this time. i The background of the District's involvement with Hirschdale's water problems, the application before the Farmers Home Administration for funding, formation of an assessment district, and negotiations with Mr. Rodrigues for purchase of the system were discussed. John Minnis, representing the Hirschdale property owners, advised that since the last Board meeting he sent letters to 37 individuals (existing hook-ups and potential hook-ups) asking if they are in favor of f the formation of an assessment district by the PUD for the purpose of improving the water system. He did not correspond with Mr. Rodrigues or owners of the parcels that are unbuildable. Mr. Minnis received 22 affirmative and two negative responses. He provided the Board with copies of the letter which he sent. t 11/5/84 Pg. 4 I Z'd It was noted that, because of the amount of property owned by A. F. Rodrigues, he would have 40% of the vote on whether the assessment district should be formed. Mr. Rodrigues stated that, under the conditions of the use permit issued to him by the County for the trailer park, no additional development of the land or additional water users will be permitted. There are presently 25 spaces in the mobile home park and two other units using water. A condition placed on the permit is that there will be no other family units allowed on the nine acres of property, and the water system will have to be upgraded to a level acceptable to the Health Department. With respect to the system improvements the previous owner, Robbie Fitzgerald, was to have made, Mr. Rodrigues claimed no knowledge. He stated he would only be serving water to the mobile home park and to the present users. There was discussion as to whether or not Mr. Rodrigues has an obligation to serve all the residents of Hirschdale. The Board rejected Option No. 1, leasing the land from Rodrigues, developing a new water system with the rental defraying Mr. Rodrigues' assessment, and felt Option 5 would be the logical choice until such a time as the County Health Department declares the existing water system to be a health hazard, in which case they would favor Option 4. In response to a question posed by Jerry Blakley, the Board discussed the projected life of a water system built in accordance with the District's standards, and the obligation of the District to keep its systems properly maintained. At Bill Austin's request, Counsel Phelps explained the condemnation procedure and length of time necessary to complete such an action, and noted at the conclusion of the proceeding, an assessment district could be formed involuntarily. President Maass stated that he would be in favor of deannexing Hirschdale if the property owners make a determination to form a mutual water company. Mr. Rodrigues noted for the record that he is not as negative as the impression he has created, and knows he is not liked in the Hirschdale community as owner of the water system - the public hearings, he felt, proved he had enemies. He indicated it took him 13% months after foreclosing on Fitzgerald to obtain a use permit from the County. Mr. Rodrigues indicated he would like to sit down with the property owners to work things out in a manner acceptable to the Health Department and at as low a cost as possible. He stated that, if nothing else is accomplished tonight, he wants to erase the negative impression of himself. Mr. Austin talked of the decreased property values resulting from approval of the mobile home park, and the possibility of the water service being shut off after a 12-month notice period. The Chairman moved that the Board adopt Option No. 5 - cancellation by the TDPUD of plans to upgrade the Hirschdale water system - until such a time as the Health Department has declared the system unsafe, there is a . court order, or Mr. Rodrigues has agreed to selling the property and the formation of an assessment District. SO MOVED by consensus. CONSIDERATION OF RESOLUTION DECLARING CERTAIN INVENTORY SURPLUS AND ISSUING A CALL FOR BIDS After review of the draft, Director Hamilton moved that the Board adopt the resolution declaring certain inventory surplus and issuing a call for bids; seconded by Director Corbett. SO RESOLVED. 11/5/84 Pg. 5 128 CLOSED SESSION The meeting was adjourned to closed session at 9:51 P.M. RETURN TO PUBLIC SESSION The meeting was returned to public session at 10:52 P.M. President Maass advised that, during closed session, the Board discussed personnel matters and union negotiations. No action was taken. f ADJOURNMENT There being no further business before the Board, after motion duly made and passed, the meeting was adjourned at 10:53 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT B6 Pr ident - Mkrtinuffy ATTEST: Susan M. Craig, Deputy Dist ict Clerk i I i i l f 11/5/84 Pg. 6