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HomeMy WebLinkAbout1984-07-16 Min - Board REGULAR MEETING July 16, 1984 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Maass at 7:00 P.M..: in the TDPUD Board room. ROLL CALL: Directors Corbett, Duffy, Hamilton and Maass were present. Director Cooley, by memo, advised the Baord that he would be absent for medical reasons. CONSULTANTS PRESENT: Counsel James E. Simon. EMPLOYEES PRESENT: Sue Felce, Ron Reynolds, Bruce Grow, Peter Holzmeister and Susan Craig. OTHERS PRESENT: Among those present were Dick VanLandingham and an individual from Hirschdale. APPROVAL OF MINUTES Director Duffy moved, and Director Corbett seconded, that the minutes of June 4, 1984 be approved as written. All Directors, aye, by voice vote. SO MOVED. With respect to the minutes of June 18th, Director Corbett asked if a portion of the discussion concerning the proposed Ponderosa Golf Course development should be clarified. It was determined that no elucidation would be required. Thereafter, Director Duffy moved that the minutes of June 18, 1984 be placed in final form as written; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. Regarding the draft minutes of July 2, 1984, Counsel Simon presented a cor- rection on behalf of Counsel Phelps to the second paragraph of the Manager's re- port on timber removal. As amended, it shall read: "Mr. Holzmeister advised that Counsel reviewed the release form prepared by the District and found it to be adequate as far as District liability for personal injury to employees. Coun- sel warned that the release would not protect the Dsitrict from liability to third parties injured by employees." It was moved, duly seconded and unanimously approv- ed that the minutes of July 2, 1984 be prepared in final form as corrected. BILLS FOR APPROVAL - REVIEW OF FINANCIAL STATEMENTS Manager Holzmeister explained the Tahoe Office System copier coupon program under which the PUD purchases its annual supply of copy paper and supplies and, there being no further questions, Director Hamilton moved that the bills be ap- proved for payment. The motion was seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. Mr. Holzmeister noted that the financial statement format will be reviewed and explained by the Auditors at the workshop meeting in order that the Board may have a clear understanding of the District's financial situation on a monthly basis. He indicated that, at present, the Electric Department is in excellent shape, although he does have some concern over the Water Department. Mr. Holz- meister advised that after the budget has been approved, he will be reviewing the PUD's financial policies and, perhaps, suggest some changes. President Maass noted that the workshop meeting with Arthur Andersen and Company has been scheduled for 3:00 P.M. on July 31st. MANAGER'S REPORT Electric Department - Unit 10 The Manager summarized for the Board problems the District has had with Unit 10 and the importance of keeping the vehicle in service. Presently, it is in need of a new engine. Several alternatives were discussed, and Director Ham- ilton moved that the Board direct the Manager to have Unit 10 repaired, begin -the search for a new vehicle for purchase in 1985, and to establish a maintenance and replacement plan for the District. Director Corbett seconded the motion. All 7/16/84 Pg. 1 Directors, aye, by voice vote. SO MOVED. Timber removal Mr. Holzmeister explained that the District's insurance policy would cover injury to third parties and injury to the District itself up to $11,000,000; and the release form required to be signed by anyone to be on District property during the removal of timber would take care of personal injury. Counsel Simon advised he would be providing a slightly revised release form for use by the District. After a brief summary of the timber removal program, Director Duffy moved that, with the understanding that the District is covered, the Board direct the Manager to go forward with the program for removal of the diseased timber. Director Hamilton seconded the motion. President Maass noted that the trees to be removed should be clearly marked. All Directors, aye. SO MOVED. Camping - District property Director Corbett noted there is evidence of campsites on the District's property located south of the river, and suggested the PUD place "no overnight camping" signs. Budget Mr. Holzmeister presented an amended 1985 budget calendar as requested by the Board which will allow a rate hearing to be held prior to the end of the year. The Board agreed with the proposed dates. Staff assignments to Board committees As recommended in the Harvey Rose management audit, Manager Holzmeister suggested that certain staff members be designated to work with the corresponding Board committees. Personnel and Finance/Budget Committee, Office Manager; Elec- tric Committee, Electric Foreman, Foreman of Technical Services and Engineering Technician; Water Committee, Water Foreman, Engineering Technician. By consen- sus, the Board agreed with these appointments. Guidelines and standards for water and electric systems With respect to the Harvey Rose recommendation to develop and adopt electrical construction standards, Mr. Holzmeister reported that a committee has been appoint- ed and is working on this project. A separate committee is also working on up- dating the water standards and guidelines. Management audit The Manager presented to the Board the first quarterly report on District implementation of Harvey Rose's recommendations; out of the 52 recommendations, 23 have either already been put into effect or are being considered. He noted that some of the suggestions will be modified somewhat as a result of discus- sion with staff and the Board, and some will not be implemented at all based on consideration of the facts. PUBLIC HEARING CONSIDERATION OF ORDINANCE ESTABLISHING NEW DIRECTOR COMPENSATION President Maass opened the public hearing to consider an ordinance estab- lishing new Director compensation at 7:32 P.M. , and advised that an increase had been considered earlier this year but was put over for six months based on public input. The increase currently being considered is an additional $200 per month for each Director, which would be $4,800 per year for each Board mem- ber. There was no public input, and Director Hamilton moved that the public hear- ing be closed at 7:34 P.M. Director Duffy seconded the motion, and it was ap- proved unanimously. 7/16/84 Pg. 2 The Chairman read a memo from Director Cooley stating he is in favor of the compensation increase as proposed based on the fact that he is very pleased at the progress being made concerning the Grand Jury investigation and the fact that the Board will not be considering a customer rate increase this year. Director Corbett stated he feels this is the way Directors should be reim- bursed for any money lost from their regular jobs and thinks this increase will take care of the matter. Director Hamilton moved, and Director Duffy seconded, that the Board adopt y Ordinance No. 8403. ROLL CALL: Cooley, absent; all other Directors, aye. SO MOVED. PLANNING DEPARTMENT NOTICES Note was made that the Truckee Tahoe Airport District is appealing the Plan- ning Commission's denial of their use permit and zone change applications. President Maass stated his concern regarding WestStar's request to have the zoning on property belonging to the District changed, and Director Corbett moved that the Board authorize President Maass to attend the related hearing on behalf of the District; seconded by Director Hamilton. SO MOVED by consensus. With respect to the appeal of John Minnis before the Board of Supervisors to appeal the Planning Commission's approval of a conditional use permit for the Hirschdale Mobilehome Park, zone change and general plan amendment, the Chairman stated he hopes Mr. Minnis is successful and feels the District should install a water system for the entire area, but did not think the District should take a stand on this matter. Mr. Holzmeister advised that staff has or will respond to notices of develop- ment proposed by Brandenberger. and Oshima. President Maass made note of the proposed amendment to the general plan con- cerning minimum lot size, and indicated he would like to have the matter research- ed to determine whether or not the District should provide a response. He asked Mr. Holzmeister to check into the matter. PUBLIC INPUT There was no public input. CORRESPONDENCE Director Corbett noted that correspondence was received from Shumway's office concerning the Jarvis initiative which he had copied to each Director. COMMITTEE REPORTS There were no committee reports. CONSIDERATION OF RESOLUTION .ESTABLISHING POLICY RE ASSESSMENT DISTRICT DE- LINQUENCIES After a brief review of the policy regarding assessment district delin- quencies prepared by Counsel Phelps, Director Duffy moved that the Board adopt Resolution No. 8444 establishing such policy; seconded by Director Hamilton. ROLL CALL: Cooley, absent; all other Directors, aye. SO MOVED. CONSIDERATION OF RESOLUTION APPOINTING BOND COUNSEL FOR PROJECT 83-3 Mr. Holzmeister advised that Sam Sperry of Sturgis, Ness, Brunsell and Sperry has proposed to handle the Hirschdale water improvement bond issue for >C a maximum cost of two percent of the FmHA loan proceeds ($3,500) and not less than $1,500, plus out of pocket expenses. After reviewing the proposed agree- ment with Mr. Sperry, Director Duffy moved that the Board adopt Resolution No. 8445 appointing him as Bond Counsel and authorizing execution of the agreement. Director Corbett seconded the motion. ROLL CALL: Cooley, absent; all other Directors, aye. SO MOVED. 7/16/84 Pg. 3 WESTSTAR COMMUNICATIONS - DISCUSSION REGARDING ZONING REQUEST - POSSIBLE DIREC- TION This matter was put over until after the hearing before Nevada County. CONSIDERATION OF RESOLUTION ACCEPTING REMAINDER OF MARTISWOODS WATER SYSTEM IMPROVEMENTS The Manager advised that the District has received the Martit000ds as- the tank built drawings and has easements to the distribution system and site. However, title to the system and the property on which the tank is lo- cated has not yet been obtained. Mr. Holzmeister recommended accepting the system for operation and maintenance since several Martiswoods residents have connected themselves to the water system, and pursuing clear title to the 100' by 100' parcel on which the tank is located. Counsel Simon suggested that the Manager determine whether escrow has been closed (transferring a parcel which includes the tank site to a private party) ; if not, a letter could be written to the title company advising of the agree- ment between the District and the developer regarding the tank site. President Maass tabled the matter to a time when appropriate title has been received by the District. APPROVAL AS TO FORM - CONSULTANT SERVICES AGREEMENT Manager Holzmeister presented to the Directors an engineering consultant services agreement which he amended to incorporate several of R. W. Beck's and Dan Cook's suggestions. Counsel Simon stated he had not been asked to analyze the g agreement but, upon brief review, he did not foresee any problems. proposed He noted there were some provisons added to the agreement at R. W. Beck's re- quest which provide for greater protection to the District. Mr. Holzmeister stated he would like to have some basic ground rules between the District and consultants presently being used. Director Corbett suggested the Board ask Counsel to look over the proposed agreements and come up with one basic form for use by the District. SO MOVED by general consensus. Manager Holzmeister advised that James Hansen and Associates was asked to discontinue consultant work relating to the hydroelectric projects and the two megawatt WAPA alloaction; however, the District is still receiving calls and correspondence regarding what is being done on the District's behalf. Director Duffy moved that the Board enter into agreements with Cook Assoc- iates and R. W. Beck and Associates for engineering services with a definite expiration date - perhaps December 31st - to see how they work out. Director Corbett seconded the motion. Counsel Simon stated he is not sure if the agree- ment, as written, will protect the District, but some type of agreement may be better than no agreement. He indicated the agreement form could be perfected for use in 1985. Director Hamilton suggested that identical indemnification provisions be used for both Beck and Cook, and that the District impose its own conditions for consulting services rather than allowing consultants to influence the Dis- trict in this respect. He went on to say he is against the District being a "sole source" for consultants, and thought the PUD should issue requests for proposals when outside engineering is required. ^, Director Duffy withdrew his previous motion, and moved that the Board direct staff to mail letters setting forth the District's conditions to its consultants; if a consultant violates its stipulations, he is taking a chance of not being paid. MOTION DIED FOR LACK OF A SECOND. Director Corbett noted his concern over not having some sort of guidelines for employees to follow when they are in need of engineering advice, and the various provisions of the proposed agreement were discussed. Counsel stated he could provide the District with a revised draft at the next regular meeting; SO DIRECTED by consensus. 7/16/84 Pg. 4 The Manager again mentioned that Hansen and Associates continues to per- form consultant work even though President Maass, on behalf of the Board, pro- vided a letter of termination. Director Duffy moved that the Board reiterate its position indicating that it no longer considers James Hansen and Associates as a firm working for the District. Director Hamilton seconded the. motion. After some discussion, the motion was withdrawn. Director Duffy moved that James Hansen and Associates be renoticed of their termination; the Board will make specific request for any further work. Direc- tor Hamilton seconded the motion, adding that no further payments will be made to James Hansen and Associates. All Directors, aye, by voice vote. SO MOVED. Director Hamilton went on to state again his total opposition to the District being a sole source for any consultant, and some discussion ensued. The Chairman tabled the matter to the next regular meeting. At this point in the meeting, 8:30 P.M. , Director Hamilton left because of previous business commitments. CONSIDERATION OF POLICY DEFINING THE ESTABLISHMENT OF RATES AND CHARGES It was noted that the policy defining the establishment of rates and charges had been placed into a new format. As there were no changes in the policy, no action was required by the Board. CONSIDERATION OF POLICY DEFINING THE ESTABLISHMENT OF ELECTRIC CONNECTION AND FACILITIES FEES - POSSIBLE APPROVAL OF NEW FEE SCHEDULES President Maass advised that he reviewed this matter with staff, and it is the Manager's desire to bring the connection and facilities fees up to date and in line with actual cost to the District, and to amend the temporary to permanent service policy to allow for collection of fees at the time temporary service is provided. Three draft resolutions and related policies were pre- pared: a) policy defining connection and facilities fees and charges; b) amend- ing Electric Rule No. 7 - policy regarding temporary service; c) rescinding pre- vious resolutions and ordinances and establishing electric connection and facil- ities fees. There was lengthy discussion as to the proper manner in which the District should set policies defining the establishment of fees and charges and the fees and charges themselves. On occasion, the District has used ordinances; at other times, resolutions have been used. Counsel Simon advised it is proper for the District to adopt resolutions to set fees and charges. Section -16077 of the Public Utilities Code speaks to expenditures of money or the amount involved in a contract exceeding $100,000, or the amount proposed to be raised by a tax levy exceeding $50,000, which must be done by ordinance. An increase to rates, fees and charges, Mr. Simon stated, would not be included in this framework. He went on to say that, traditionally, the District has adopted rates by ordinance, but he was not aware of any estab- lished tradition regarding fees. Further, it was his opinion that ordinances should be rescinded or amended by another ordinance rather than a motion or resolution; President Maass was in agreement. Director Duffy said he feels it is important for the public to have input on matters affecting them directly. After some discussion, President Maass suggested, regarding rates, fees and charges, that the District provide public notification, hold a public hearing, publish a notice of adoption and print the related resolution. No direction was given or action taken concerning this matter. REVIEW AND POSSIBLE AWARD OF TELEMETRY MAINTENANCE CONTRACT Mr. Holzmeister advised that one bid for annual telemetry maintenance was received from Sandel-Avery Engineering in the amount of $850 per month; and a one time charge of $6,800 for preparing a complete description of the telemetry 7/16/84 Pg. 5 system. He indicated the District has been happy with the maintenance pre- sently provided by Sandel-Avery; Water Foreman Rully has reported they are doing a good job. It was Mr. Holzmeister's recommendation that the Board award the contract to Sandel-Avery. Director Duffy moved, and Director Corbett seconded that the Board award the telemetry maintenance contract in the amount of $850 monthly and the al- ternate in the amount of $6,800 for preparing documentation of the telemetry system to Sandel-Avery Engineering. All Directors, aye, by voice vote. SO MOVED. REVIEW OF PROPOSALS FOR ARCHITECTURAL SERVICES RESPECTING NEW DISTRICT COMPLEX - POSSIBLE ACTION Manager Holzmeister reported that 21 architects made proposals for planning and designing a new District complex, the amounts ranging from $2,000 up to $15,000. He indicated he reviewed the proposals quickly, and tried to identify those having experience building in mountainous areas and in designing similar facilities. Size of the firm and location were also taken into consideration. Mr. Holzmeister recommended that the Board interview four firms; Dale Cox from Truckee ($3,000) - Dan Cook, Oroville ($4,900) - Putnam and Associates, Reno ($3,500) - and David Tucker from Tahoe City ($4,600) . President Maass suggested that the Board also interview Raymond Vail and Associates ($3,960) . Director Duffy moved that the Manager be directed to make arrangements to meet with representatives of the five architectural firms at a special meeting and to thereafter advise the Board of the time and date. It was deter- mined that each representative would be allotted an half hour period, and that the order of interviews would be decided by drawing names at random. Director Corbett seconded the motion. All Directors, aye, by voice vote. SO MOVED. President Maass asked the Manager to invite all employees to attend and participate in the interview process. CONSIDERATION OF RESOLUTION ACCEPTING EASEMENT FROM GRAHAM After a brief review of the draft, Director Duffy moved that the Board adopt Resolution No. 8446 accepting an easement from Mr. and Mrs. Graham for electric service; seconded by Director Corbett. ROLL CALL: Cooley, absent; all other Directors, aye. SO MOVED. HIGHWAY 267 LINE REPLACEMENT - STATUS REPORT - POSSIBLE DIRECTION Manager Holzmeister reported that, on July 13th, Dan Cook, Water Foreman Dave Rully and a representative of CalTrans inspected the Highway 267 line re- placement project and prepared a final punch list of several minor items yet to be completed. The line is in service. Mr. Holzmeister noted there were two change orders executed in the field which will increase the total cost of the project by approximately $2,000. President Maass directed that the change orders, notice of acceptance and completion and accompanying resolution, as well as progress pay request be pre- pared for consideration at the next regular meeting. The Manager noted that the District should also have the maintenance bond from Jetco prior to accepting the project. REQUEST FOR LEAVE Mr. Holzmeister reminded the Board that he may be required to return to Grove City, Pennsylvania for a few days in order to testify at an anti-trust hearing. The Board indicated their approval. ADJOURNMENT There being no further business before the Board, after motion duly made, seconded and passed, the meeting was adjourned at 9:31 P.M. 7/16/84 Pg. 6 TRUCKEE DONNER PUBLIC UTILITY DISTRICT By Q�'S� � -, a J s A. Maass, President Susan M. Craig, Deputy Dis ict Clerk 7/16/84 Pg. 7