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HomeMy WebLinkAbout1987-05-18 Min - Board REGULAR FETING may 18, 1987 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Corbett at 7:05 P.M. in the Tahoe Truckee Unified School District Board Room. ROLL CALL: Directors Cooley, Maass, Sutton and Corbett were present. Director Hamilton was absent. CONSULTANTS PRESENT: Counsel Jinn Porter sat in for Mr. Phelps who is on vacation. .EMPLOYEES PRESENT: Debi Black, Tom Buckhouse, Bruce Grow, Joe Straub, Peter Holzmeister and Susan Macdonald. OTHERS PRESENT: Among those present in the audience were Dan Ivens, Chuck Smith, Cliff Hartwell, George Wesley, David Ball, Corey Ray, Chris Mayberry, Hans Stueckler,, Joan Hartwell, Ronald Collins, C. R. VanLandingham and Stephanie Erber. APPROVAL OF MINUTES Director Maass moved, and Director Cooley seconded, that the Secretary be directed to prepare the minutes of April 6, 1987 in final form as written. All Directors, aye, by voice vote. SO MOVED. Director Maass moved, and Director Sutton seconded, that the - Secretary be directed to prepare the minutes of April 8, 1987 in final form as written. All Directors, aye , by voice vote. SO MOVED. With respect to the minutes of April 20, 1987, Director Sutton expressed concern that a motion directing that Counsel draft a resolution outlining a conflict of interest code was not clear. Director Maass noted that this should not he a concern since subsequent direction was given concerning the matter. Thereafter, Director Maass moved that the Board direct the Secretary to prepare the minutes of April 20, 1987 in final form as written; seconded by Director Sutton. All Directors, aye, by voice vote. SO MOVED. Director Sutton asked that the minutes of May 4, 1987 reflect that she voted "no" to advertising for applicants to fill the Board vacancy created by Mr. Hamilton because she is in favor of the election process. Director Maass moved that the Secretary be directed to prepare the minutes of May 4, 1987 in final form as corrected by Director Sutton. The motion was seconded by Director mutton. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL /0^ The Board reviewed the two bills presented for consideration, and Director C orbett noted the Mastercard expenses were for the CM'JA conference in -1- Monterey he attended recently. The Manager noted he has accounted for the expenditures as is required by District policy. Director Maass moved, and Director Cooley seconded, that the bills presented be approved for payment. All Directors, aye, by voice vote. SO MOVED, HARAGER'S REPORT Water quality Mr. Holzmeister noted that the Board has been provided with a summary report on bacteriological water quality. The report identifies by month the number of samples taken within the distribution system and at sources. The PUD is required to obtain 16 samples within the Truckee distribution system and two samples within the Prosser system. There is no requirement for source samples. The locations of positive samples are identified in the footnotes of the report. Budget report Regarding the budget report, Mr. Holzmeister noted that, overall, the budget looks very good after the first quarter of the year. The only line item that appears to be a problem at this point is legal services in the water fund. The line item is in the red because of the continuing lawsuit with Nevada County over the groundwater ordinance. The Manager further reported that Account 12661 is a negative expenditure reflecting the insurance company reimbursement for the Ward case legal costs. Account 13602 is in the red because of the telecopier purchase; however. it is used f requently and he noted he considers it to be a good purchase. Account 22521 is in the red because some consulting engineering costs were charged to the wrong account; an adjustment will be made. Director and officer insurance Mr. Holzmeister referred to the Office Supervisor's memo dated May 6, 1987 , and noted it points out that the amount of coverage available is now $1 9000,000. Two years ago it was at $5,000,000. The total cost is $7,199 including the NRECA membership of $4,794 and the premium of $2 ,405. Workshop on 1986 audit The Manager reported that an audit workshop has been scheduled for 3:00 P.M. on Thursday, May 21 at the School District Board Room. This date was not convenient for all Board members, so Mr. Holzmeister was asked to reschedule it for the evening of June 8. Review of District purchasing practices Warehouseman Joe Straub told the Board the goal of the purchasing department is to purchase economically and to have needed items on hand without tying up too much money in materials. He advised that all supplies are not put out to bid annually. All the PUD's needs cannot be predicted -2- ,r•., in January. Also, many items do not yet have related written specifications which are necessary to go out to bid. Because of the small quantities required by the District, better prices are usually obtained through telephone quotes. Mr. Straub explained that items costing less than $499 are purchased outright; three telephone quotes are obtained on items costing between $500 and $31999; the sealed bid process is used for items costing over $4,000. He recommended that the District petition the California Municipal Utilities Association to work towards having the law requiring formal bidding on items costing more than $4,000 repealed or amended to increase the limit. Since all items are not put out to bid on an annual basis, Director Sutton stated she believes the District is not complying with the law. She noted that honest , upright employees may be put in questionable positions if the bid process isn't followed precisely. Discussion followed about the consequences of non-compliance and the probability that most other special districts do not follow this bid requirement. Counsel Porter noted that if the District Is bidding some of the many items purchased on an annual basis and items over $4,000 throughout the year it is probably in substantial compliance with the law. Director Maass stated that the law was put into effect in 1921 and last updated in 1953. He said it's most likely archaic and impractical. The Board requested that Mr. Straub submit examples supporting his statement that items purchased by way of telephone quotes have been less expensive than the same items put out to bid. Director Maass asked the Manager to contact Jerry Jordan of CMUA to see if there is any action towards amending or repealing the bid limit. The majority of the Board agreed with his request. SO MOVED by consensus. (Director Sutton disagreed.) PUBLIC INPUT There was no public input. CORRESPONDENCE Director Sutton asked that she be copied with Mr. McDonough's letter and draft filing regarding the dispute with Sierra Pacific Power Company before the Public Utilities Commission and also with Senate Bill 1506. CO#1MITTSE REPORTS There were no committee reports. CONSIDERATION OF PETITION FOR ABANDONMENT OF UNUSED RESERVED EASMYT - '"'' TAHOE DOWER ASSOCIATION/TDMTff BARONS Engineering Technician Black explained that the Tahoe Donner Association -3- , -. and Timothy Barons have applied for abandonment of the unused easements over AP#18-190-08 , Unit 8, Parcel B in Tahoe Donner. The parcel being served through the abandonment of this easement is located outside the boundaries of the Tahoe Donner subdivision. The property has received water service off the main in Lausanne for a number of years. The water service for this parcel as well as the adjacent parcel traverses the subject easement, and also enters a portion of the part of the easement to be abandoned. After review, staff has recommended releasing the District's interest in the appropriate portion of the easement subject to recordation of a 10' easement to cover the water service for the adjacent parcel. This requirement would be included in a letter to Nevada County and would be a County requirement prior to recordation of the lot line adjustment. Discussion ensued, and Director Sutton asked that the matter be put over until staff can examine the records and determine whether or not appropriate fees have been paid and to look into the legitimacy of the installation. SO MOVED by consensus. CONSIDERATION OF TRUCKEE DOWNTOWN NBRCHANTS ASSOCIATION REQUEST CONCERNING PARK Mr. Hartwell noted that the Downtown Merchant Association is developing a park at the corner of Bridge and Jibboom Streets for use by the public and visitors. The area will include a sprinkler system for the lawn for use in the summer. The Merchants are requesting that the PUD waive some of the costs of the $3,983 estimate given to connect the sprinkler water system. He noted the PUD fee is more than the entire cost of developing the park. Director Cooley reminded the Board that when a request .for waiver of fees was received from the Park and Recreation District several months ago, Counsel McDonough advised that it is illegal and discriminatory for the District to waive fees for some and not others. The District cannot wake a gift of public funds even to a non-profit organization. The Park District's request was denied. Counsel Porter stated that the firm he and Counsel Phelps are associated with represents the Park District and they cannot, therefore, render an opinion. Mr. Holzmeister noted that the fee includes an amount applicable to fire flow demand. After some discussion, Director Maass suggested the Board look into revising the fee schedule so that there is a differentiation between irrigation systems and buildings. The Manager indicated he would break down the water facilities fees showing what portion is applicable to fire flow demands, development of wells, storage, tanks and facilities, No action was taken on the Downtown Merchants' request. DISCUSSION OF SPHERE OF INFLUENCE Note was made of Counsel Phelps' memorandum concerning the District's sphere of influence and the Local Agency Formation Commission. Director -4- Sutton stated that the District has certain limitations of its services already set by LAFCo, and noted that Counsel Phelps did not answer her questions in his memo. After some discussion, Mr. Holzmeister stated he is looking f or guidance f rom the Board as to what to do with respect to the sphere of influence. There are three options - do nothing; retain the current sphere and 3o no annexations. Annex within the current sphere. Amend the sphere of influence and annex within it. Director Cooley moved that the Board direct the Manager to research expansion to the ultimate sphere of influence (including the secondary and fractured rock areas) and to petition the Placer and Nevada County LAFCo's to amend the District's sphere based on the research. Director Maass seconded the motion. Director Sutton asked to be copied with Dr. Sharp's map and study having to do With the fractured rock. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED. The County groundwater ordinance was mentioned, and Mr. Holzmeister noted he would copy the Board with Mr. McDonough's letter having to do with the related lawsuit that was received this date. NEW DISTRICT COMPLEX - STATUS OF CONSTRUCTION, FINANCING AND SOILS CLEAN-UP - CONSIDERATION AND POSSIBLE APPROVAL OF PAY REQUESTS --- APPROVAL OF BEQUEST FOR RELEASB OF FUNDS FROM BANK OF AMERICA Directors Cooley and Maass asked that they no longer be copied with certified payroll records for the construction of the new complex. Mr. Holzmeister reported that construction is moving along nicely. The stucco work is almost complete; interior painting is nearing completion; exterior painting will begin within a week; site grading is underway; electrical, mechanical and plumbing subcontractors are making good progress. Next week the warehouse will relocate and the old building will be demolished so that site work can be completed. Clean--up of contaminated soils is almost complete. Director Maass moved, and Director Cooley seconded, that the following bills be approved for payment: 1) Value Builders, Inc. , $169,068.00; 2) Dale Cox, $4,097.7 8; 3) Al Pombo, $2 ,459,08; 4) Chemical Disposal, $15,500.00; 5) SEA, $$8,088.20; 6) Sierra Nevada Civil Engineering, $650.00; and 7) The Works, $660.60. ROLL CALL: Hamilton, absent; all other Directors , aye. SO MOVED. Director_ Maass moved, and Director Cooley seconded, that the Board approve a requisition for the release of $1871853.33 from the Bank of America. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED. CONSIDERATION OF ELECTRICAL DISTRIBUTION EQUIPMEXT BIDS AND POSSIBLE AWARD - SNITCHES - WIRE - TRANSFORMERS District Engineer Buckhouse noted that he evaluated the bids for vacuum switchgear and found the low bid for each schedule to be in order. -5- .., Director Maass moved, and Director Cooley seconded, that bids for vacuum switchgear be made as follows: Schedule A, Trayer Engineering for a total cost of $18 ,694.80; Schedule B, A. B. Chance for a total cost of $17 ,534.24; and Schedule C to A. B. Chance for a total cost of $21,716.50. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED. Mr. Buckhouse reported that he reviewed the bids for underground primary cable and found the low bid for Schedule A acceptable, but the low bid for Schedule B unacceptable because of a condition requiring award of both bids. Director Maass moved that Schedule A be awarded to Wesco in the amount of $10,080 and Schedule B to Wesco in the amount of $10,590; seconded by Director Cooley. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED. Mr. Buckhouse advised that he evaluated the bids for transformers and found the low bids (based upon total unit cost - initial cost plus cost of losses to operate) to be in order for all schedules. Director Maass moved that transformer bid awards be made as follows: Schedule A, Wesco, $10,520; Schedule B. Western States Electric, $878; Schedule C. Wesco, $4 ,298; and Schedule D. Western States Electric, $2 ,503. The motion was seconded by Director Cooley. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED, CONSIDERATION OF RESOLUTION AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENCY MESTMENT FOND AND RESCINDING PREVIOUS RESOLUTIONS After reviewing the draft , Director Maass moved that the Board adopt Resolution No. 8721 authorizing investment of Truckee Donner Public Utility District monies in the Local Agency Investment Fund; seconded by Director Cooley. ROLL CALL: Hamilton, absent; all other Directors , aye. SO RESOLVED, CLOSED SESSION The Board adjourned to closed session at 8:55 F.M. to discuss personnel matters pursuant to Government Code Section 54957.6(b). RETURN TO PUBLIC SESSION The meeting was returned to public session at 9:51 P.M. The Chairman reported no action taken during closed session. ADJOURNMENT Director Maass moved, and Director Cooley seconded, that the meeting be adjourned at 9:52 P.M. SO MOVED by consensus. TRU EE D NNER UBLI UTILITY DISTRICT Jo n L: Corbett, President -6- �..,, Prepared b Susan Mac onald , Deputy District Clerk sm/d5b/14 -7-