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HomeMy WebLinkAbout1985-03-18 Min - Board 1�. REGULAR MEETING March 18, 1985 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Duffy at 7:02 P.M. in the TDPUD Board room. ROLL CALL: Directors Cooley, Corbett, Hamilton, Maass and Duffy were present. EMPLOYEES PRESENT: Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John M. Phelps. OTHERS PRESENT: Among those present were C. R. VanLandingham, David Toussaint,. John Scott, Densil Dawson, Jill McCollum and David Mertens zur Borg. APPROVAL OF MINUTES Director Maass moved, and Director Corbett seconded, that the Board approve the minutes of February 4 and 19, 1985. ROLL CALL: all M085/46 Directors, aye. SO MOVED. Director Maass moved, and Director Corbett seconded, that the Secretary be directed to place the minutes of March 4, 1985 in final form as written. ROLL CALL:_ all Directors, aye. SO MOVED. M085/47 BILLS FOR APPROVAL Director Maass moved, and Director Cooley seconded, that the bills presented for consideration be paid. After Director Corbett's questions concerning the Porter, Simon, Graham and Phelps bill were answered a ROLL CALL vote was taken: all Directors, aye. SO MOVED. M085/48 MANAGER'S REPORT Audit Manager Holzmeister reported that the Arthur Andersen auditors are present going through the audit of the District. At the conclusion, the audit report will be presented to the Board. Street naming Counsel Phelps advised that he checked with the County Planning the street leading from Highway 267 Department regarding the naming of to the Senior Citizens Complex (property owned by the District) and was informed that the street already has a name - Estates Drive. There is, however, no street sign on the corner of Highway 267. Director Maass suggested obtaining a map and doing further research. By consensus, the matter was referred back to Counsel. M085/49 Audit Mr. Holzmeister, for the benefit of the public, explained why the District hires auditors and the difference between them and accountants. Auditors review the books for use outside the District they prepare an unbiased statement about the financial condition of the D istrict and sign a statement saying it is a fair evaluation. PUBLIC INPUT There was no public input. CORRESPONDENCE There was no correspondence of interest to the Board. COMMITTEE REPORTS No committees met since the last regular meeting. 3/18/85 Pg. 1 STATUS OF NEW COMPLEX - TIME LINE - FINANCING - SALE OF 1.9 ACRES Mr. Holzmeister presented to the Board a projected timeline for the new District complex, beginning with the approval of a preliminary financing plan in April 1985 through occupancy of the new complex in June of 1986. It was proposed that the preliminary design plan be approved in May 1985; the final design plan, rezoning of the 1.9 acre parcel, final financing plan be approved, and the bid opening take place in July of 1985; award of contract and start of construction in August 1985; sale of the 1.9 acres in April of 1986; and completion of construction in June 1986. He indicated the timeline should be a .� guideline - the Board shouldn't be reluctant to alter the dates if necessary. A chart showing the cash flow excluding sale of the 1 .9 acre parcel was presented, which outlined the building fund, interest, cash available, payments to the contractor and balance. The figures included the account transfers proposed in the resolution to be considered by the Board at this meeting. Mr. Holzmeister explained the relationship of the time line to the cash flow. He noted that between now and the end of March 1986, it would be necessary to sell the 1.9 acre parcel to make up the cash deficit, or to obtain financing using the land as collateral. Next, a financing plan was reviewed. It was proposed that I $1,000,000 be set aside by way of transfers from six different accounts and the sale of land for. $500,000 - $9,844 from the REA loan account G (interest accrued on the amount of the final REA payment which has been set aside) ; $221,803 from the Martis Valley Substation account, as the substation project is complete and these funds may be released; $184,529 in refunds from Sierra Pacific representing overcharges to SPPCo by Utah Power and Light which were passed through to the District; interest earnings in the amount of $80,000 from the general i fund; $313,881 from the FmHA revenue fund which was set up by the terms of an indenture for the purpose of keeping the enterprise healthy and I p to improveoperations; and $189,943 from the consumer deposit account. i Regarding the consumer deposit account, Mr. Holzmeister explained that the deposits made by customers to guarantee payment of utility bills remains fairly consistent and could be used for construction of a new building rather than for investment. The use of the funds would have to be balanced, and he suggested that, each year when the budget is prepared, a schedule of projected cash flow through the consumer deposit account also be prepared as part of the process. The Board answered questions posed by Mr. VanLandingham relating to payment to the architect for his services on the new complex project and the use of restricted funds. The Board reviewed the draft resolution authorizing establishment of a restricted fund for the new complex and directing a transfer of funds to such account. Counsel Phelps stated that, as far as he knows, this action would be proper and legal; however, he hasn't yet reviewed the REA or FmHA indentures governing these specific accounts. It was noted that the auditors previously suggested such transfers, and Mr. Phelps noted he would assume the auditors would not propose action if it wasn't legal. There was some discussion relating to the Sierra Pacific refunds and the possibility of returning these monies to District customers. The expenses involved were also discussed. Director Maass moved, and Director Hamilton seconded, that the M085/50 Board adopt the time line, recognizing it as a guide towards keeping the project on track. ROLL CALL: all Directors, aye. SO MOVED. I Director Hamilton moved, and Director Corbett seconded, that the R8512 Board adopt Resolution No. 8512 authorizing the establishment of a 3/18/85 Pg. 2 1 restricted fund for the new complex and directing a transfer of funds to such account. To be added to the resolution is the statement that the Martis Valley Substation account is to be closed, and that an accounting system for the consumer deposits will be established in the budget process. ROLL CALL: Cooley, yes, stating for the record that he is not entirely satisfied with the financing plan but will not stand in the way of establishing the fund. However, he has questions relating to Items 2, 3, 5 and 6 which he would like answered; all other Directors, aye. SO RESOLVED. Discussion ensued as to whether or not it is required by law to sell the 1.9 acre parcel through the bidding process. By consensus, this matter was referred to the Manager and Legal Counsel for review M085/51 and recommendation. CONSIDERATION OF STAFF RECOMMENDATIONS AND POSSIBLE AWARD OF BIDS - CUSTODIAL SERVICE - TAHOE DONNER SUBSTATION IMPROVEMENTS - ANNUAL SUPPLY OF METERS AND TRANSFORMERS Custodial Services Manager Holzmeister advised that Nancy Sarat of Helluvajob declined the bid award for custodial services for personal reasons, and recommended awarding to the next low bidder, Larry Russell, Jr. Director Maass moved that the Board award the contract for janitorial service to Larry Russell, Jr. pending final reference checks due to the decline of the award by the low bidder because of extenuating circumstances; the motion was duly seconded. ROLL CALL: all Directors, M085/52 aye. SO MOVED. Tahoe Donner Substation improvements Bids for the Tahoe Donner Substation improvements were opened on March 8th, and varied from a low of $25,600 (Martin Hedge) to a high of _._ $68,455. Only four bids were received. By way of memo, Mr. Buckhouse, District Engineer, noted that a review of the bid package reveals the specifications require constructing a roadway that is possibly over designed and more costly than the District's actual needs dictate. In view of the wide discrepancy in the bids.. and in order to further re- fine the specifications to better match District needs, it was his recommendation that the District reject all bids at this time in order that new specifications could be prepared which would also include the paving of the Martis Valley Substation. Mr. Holzmeister noted that the low bidder was interviewed; it was discovered he misunderstood part of the bidding process. He also recommended rejecting the bids, clarifying some sections of the specifications, and including the Martis Valley Substation in the project. Director Corbett moved, and Director Hamilton seconded, that the bids be rejected. Densil Dawson, present in the audience, was the second low bidder. He expressed his concern over money spent for the bid bond, and the rejection of the bids. He asked that,.-prior to rejecting all bids, the District show that he is an irresponsible bidder. The Manager noted that the District reserves the right to reject all bids. Some discussion ensued. Director Maass moved the question. John Scott, who prepared the electrical portion of the bid for Mr. Dawson, stated that he agrees with Mr. Dawson - time was spent_ in preparing the bid, and a bid bond was purchased. Mr. Dawson suggested that if the District rejects the bids the bidders be reimbursed money spent for the bid bonds. ROLL CALL vote on the motion to reject all bids: Cooley, abstain; Corbett, abstain; Hamilton, no; Maass, yes; Duffy, yes. MOTION FAILED. 3/18/85 Pg. 3 Director Hamilton stated he did not realize the low bidder didn't acknowledge receipt of the addendum relating to payment of prevailing wages, and moved to award to the next low bidder. Motion seconded by Director Corbett. Counsel suggested the award not be made at this meeting, and that Martin Hedge be contacted - he may be willing to withdraw his bid - if not, the District will have to determine it is not a responsible bid. Director Hamilton withdrew his motion. After some discussion, by .� M085/53 consensus, the matter was referred to legal counsel and staff and is to be brought before the Board at the next regular meeting. Annual supply of meters and transformers After review of the meter bid analysis, Director Maass moved, and Director Corbett seconded, that the awards be made to the low bidders as follows: Schedule A to Westinghouse at a cost of $30.50 each; Schedule B and Schedule C to General Electric at a cost each of $72.30 and $264.55 respectively; Schedule D to Westinghouse at a cost of $496.20 each; and Schedules E and F to Maydwell & Hartzell at a cost M085/54 each of $104.94 (E) , $266.06 (F-1) , $285.14 (F-2) and $315.88 (F-3) . ROLL CALL: all Directors, aye. SO MOVED. , Director Maass moved and Director Hamilton seconded, that the Board award bids for the annual supply of transformers as follows: 25 KVA to General Electric Supply - cost per unit including operations losses, $2,086.06; 35.5 KVA to R.T.E. - cost per unit including operations losses, $2,761.43; 50 KVA to General Electric Supply - cost M085/55 per unit including operations losses, $3,364.65. ROLL CALL: all Directors, aye. SO MOVED. POLICY ON JOINT ACCESS OF PAVED DISTRICT EASEMENTS Director Maass noted that the Water Committee will be investigating the need for a policy on joint access of paved District easements, and will make a recommendation to the Board. CLOSED SESSION The meeting was adjourned to closed session at 8:43 P.M. RETURN TO PUBLIC SESSION At 8:57 P.M. , the meeting was returned to public session. The Chairman advised that pending legal matters were discussed. ADJOURNMENT There being no further business before the Board, after motion made, seconded, and passed unanimously by voice vote, the meeting was adjourned at 8:58 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By G Martin Duffy, President i b James A. Maass, Vice President i Susan M. Craig, Deputy D trict Clerk i j 31/8/85 Pg. 4