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HomeMy WebLinkAbout1986-11-03 Min - Board REGULAR MEETING November 3. 1986 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Maass at 7:02 P.M. in the Tahoe Truckee Unified School District Board Room. ROLL CALL: Directors Cooley, Corbett, Sutton and Maass were present. Director Hamilton was expected. EMPLOYEES PRESENT: Debi Black, Tom Buckhouse , Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Special Counsel McDonough, Ferris Gilkey from R. W. Beck, John Phelps, Esq. OTHERS PRESENT: Among those present in the audience were Mo Gardiner, C. R. VanLandingham, Louise McCallen, Michael Carr and Chris Turner. APPROVAL OF MINUTES At this point in the meeting, 7:03 P.M. , Director Hamilton arrived. to'"- The minutes of September 15, 1986 had not yet been prepared so consideration was tabled to the next regular meeting. STATEMENT OF GENERAL FUND AND BILLS FOR APPROVAL After several questions were answered by Manager Holzmeister, Director Corbett moved that the bills presented for consideration be approved for payment; seconded by Director Hamilton. Director Sutton determined that none of the bills presented related to construction of the new District complex. ROLL CALL: all Directors , aye. SO MOVED. Regarding the $207,779.72 draw on certificates for reimbursement on the new building and payments made to Cox, Value Builders and Wells Fargo/Escrow at the direction of the Board, Director Sutton stated she doesn't believe bills for the building should. be included in the statement of general fund as this is contrary to the Board's direction and it isn't good to co-mingle funds. The Manager explained that reimbursement was requested from the Bank of America Project Fund, deposited in the general fund , and payments made relating to the new District complex; a separate accounting for expenses relating to the new building is being kept although checks are written on the general fund. Director Sutton asked the record to show her concern about there being a separate account for sale of the certificates, payments to the contractor and all other bills related to the building program. �1ANA�ER'S REPORT Employee party Mr. Holzmeister noted that it has been the practice of the District the past few years to have an employee gathering during the holiday season. The Northstar Golf Course Clubhouse appears to be the best location and is available on December 12. He estimated the cost of dinner and a band to be in the neighborhood of $1 ,615. Director Hamilton moved, and Director Corbett seconded, that the Manager be authorized to proceed with plans for a party at Northstar on December 12 to which employees and their spouses would be invited. The Chairman made note of the letter from the Nevada County Grand Jury stating that County Counsel has informed them use of public funds for an employee Christmas party is lawful provided the primary purpose is to enhance employee morale and provide productivity and efficiency. Director Sutton stated she feels this is an inappropriate use of public funds without some evidence that such an expenditure is needed to improve morale and productivity. ROLL CALL: all Directors , aye, with the exception of Director Sutton, who voted no. SO MOVED. Policy regarding use of PUD vehicles The Manager noted that, at the October 6 meeting, a motion passed approving in principle a policy governing the use of District vehicles by employees. The motion left it up to the discretion of the Manager to time the implementation of the policy. Mr. Holzmeister stated he proposes to fully implement the policy when parking is available at the new office. In the interim, he will allow one water service truck to be driven home by a person who lives in the District and who does not need to transport family members. The second water service truck will be parked in the warehouse. Garage space at Donner Lake will be rented and the two new line trucks will be parked at that location. Payroll records of contractor working on PUD complex At the October 20 Board meeting , Bill Cannon asked that he have an opnortunitq to review the payroll records relating to construction of the new complex. Mr. Holzmeister reported that the California Labor Code requires Value Builders to maintain records of payroll of all subcontractors on the Job; they must provide the PUD with the payroll records if asked for them, or if a member of the public asks for them through the District. A member of the public may inspect the payroll records at the PUD office. Since Mr. Cannon has requested permission to inspect the payroll records, Mr. Holzmeister reported that he has asked Value Builders to submit the records. He will notify Bill Cannon when they are received. He suggested the Board make a decision as to whether it wants to examine payroll records each month as part of the review of periodic payments. Director Hamilton moved, and Director Sutton seconded, that the certified -2- payroll records relating to the new building project be reviewed each month in conjunction with approval of periodic payments to the contractor. ROLL CALL: all Directors, aye, SO MOVED. PUBLIC INPUT Tin Lawton Mr. Tim Lawton, representing Tom Lawton, said he would like to address the Board concerning facilities and connection fees for a tap into the Draney water line improvements. The Chairman advised that the matter will be discussed under New Business. Paul Cote Paul Cote advised that he owns the historic cabin on South River Street and is having a problem paying the District's required fees in the amount of $1 ,333. He asked the Board to consider a waiver. Chairman Maass directed the General Manager to meet with Mr. Cote and present all the facts and a recommendation to the Board at the next regular meeting. CORRESPONDENCE U. S. Chamber of Commerce After a brief review of correspondence from the U. S. Chamber of Commerce asking the District to join , the Board determined membership to be inappropriate. Department of Health The District is in receipt of a letter from Ben Karoly, the Senior Sanitary Engineer of the State Health Department , which notes the District's water system failed to meet bacteriological standards during the months of June 1985, October 1985 and June 1986. In addition, during many other months when the system did meet the bacteriological standards, several samples collected from the system showed positive bacterial contamination. The Health Department stated that this series of frequent failures is not acceptable , and ordered the District to install chlorination equipment at all active sources of sunDly by November 20, 1986. Counsel Phelps advised that there is a legal procedure to challenge the Health Department's directive. After some discussion, the Chairman asked Manager Holzmeister to invite Jess Morehouse and/or Ben Karoly of the Health Department to the next regular meeting to discuss the matter)). YY^ CLARIFICATION OF POLICY REGARDIISG PRIVATELY OWNED LIDS (RESOLUTION NO. loom*, 84E72) -3- Director Maass gave an historical accounting of the private line known as the Draney Loop and events leading up to its acceptance into the District system after bringing it up to PUD standards. Prior to the improvements, formation of an assessment district with the involved property owners paying a fair share of the cost of improvements was discussed by the Board but not acted upon. An application for an FmHA grant was filed to obtain funding for the project; however, it was denied because the project had been completed and the contractor paid with District funds. Tim Lawton , present in the audience , noted he is representing a new property owner on the Draney Loop. He has applied to the District for service and is questioning the fees. The property was purchased from Louise McCallen, who represented there would be no fees payable to the PUD. Staff has asked for clarification as to whether or not Resolution No. 8472 (which sets forth a policy for the District to handle the upgrading of privately owned water lines) applies in the instance of the Draney Loop. The resolution was adopted after construction and acceptance of the Draney Loop. The Chairman requested a copy of all written records concerning the Draney Loop be provided to the Board , and Director Sutton suggested contacting Dan Cook for further information. CORRESPONDENCE Constance J. Kammerer Note was made of Mrs. Kammerer's request for a refund of a new service deposit which was directed to the Board. The Chairman turned the matter over to staff for resolution. CLOSED SESSION At 8:02 P.M. the Board went into closed session to discuss Application No. 86-03-007 before the PUC pursuant to Government Code Section 54956.9(a) and also to discuss pending litigation pursuant to Government Code Section 54956.9(b)(1) and (c). RETURN TO PUBLIC SESSI0N The meeting was returned to public session at 9:10 P.M. The Chairman reported no action was taken during closed session. CONSIDERATION OF ELECTRIC SERVICE AGREEMENT WITH SPPCo AS IT RELATES TO OPTION TO PURCHASE DISTRIBUTION FACILITIES - POSSIBLE DIRECTION It was noted that there is a provision in the agreement between the District and Sierra Pacific dated January 16, 1967 allowing the District to assume service to customers. Presently SPPCo is serving within the PUD's boundaries a portion of Glenshire, Sha Neva, and one customer on East River Street, District Engineer Buckhouse will determine if there are any other PUD customers presently being served by Sierra Pacific. -4- Mr. Gilkey of R. W. Beck stated that when the District gives notice that it wishes to terminate the contract, Sierra Pacific will arrange to meet with the District and arrive at a purchase or_ice (for its facilities within the PUD' s boundaries) on the basis of a formula that is included in the agreement. Mr. McDonough advised that the sale of the facilities would require approval from the Public Utilities Commission. After some discussion, Director Corbett moved that the Manager be directed to take action to obtain a purchase price from SPPCo for their distribution facilities located within the PUD's service area boundaries; seconded by Director Hamilton. ROLL CALL: all Directors , aye. SO MOVED. Director Sutton moved that the President be directed to write a letter to Sierra Pacific indicating that the District wishes to terminate the agreement which then gives the PUD a year to pursue negotiations with Sierra Pacific for a new partial requirements contract. The Chairman restated the motion - that the President be directed to exercise the option in the SPPCo/TDPUD contract which will begin the one-year cancellation period and also authorized the negotiators to initiate a partial requirements type contract with Sierra Pacific; seconded by Director Corbett. ROLL CALL: all Directors, aye. SO MOVED, CONSIDERATION OF AUTHORIZING PRELIMINARY ENGINEERING ON CONSTRUCTION OF TRANSMISSION FACILITIES TO BOCA AND STAMPEDE HYDROELECTRIC PLANTS CONSIDERATION OF AUTHORIZING R. W. BECK TO UPDATE REPORT ON FINANCIAL FEASIBILITY OF PURCHASING POWER FROM NCPA CONSIDERATION OF AUTHORIZING R. W. BECK TO REFINE BOCA HYDROELECTRIC FINANCIAL FEASIBILITY REPORT Manager Holzmeister noted that in order for the PUD to receive power from Boca and Stampede, it is necessary to secure wheeling from SPPCo or to construct transmission from those plants to the District's system. Staff has recommended doing some preliminary engineeriag oa coast-ruction of transmission facilities to Boca and Stampede. Ferris Gilkey has proposed placing a person in the field to become familiar with the geology, materials and site specific constraints and to contact various federal agencies on behalf of the District. After some discussion, Mr. Holzmeister was asked to break down the costs and related services proposed by R. W. Beck with respect to engineering on construction of transmission facilities to Boca and Stampede, an updated report on the financial feasibility of purchasing power from the NCPA, and refining the Boca financial feasibility report. CONSIDERATION OF AUTHORIZING WATER SERVICE TO BROWN AND MANCUSO DEVELOPMENTS The proposed Airport Commerce Building is located outside the District's -5- existing boundaries and would require that the PUD and SPPCo work together to resolve the matters relating to power supply. The District is prepared to serve power to the site if that is finally decided by the District and SPPCo, and the PUD is the only agency with water facilities reasonably close, Mr, Holzmeister noted. He suggested authorizing service without going through an annexation proceeding. Director Sutton moved , and Director Corbett seconded , that staff be authorized to proceed with preparation of the Brown and Mancuso development agreements for review by the Board. ROLL CALL: all Directors, aye. SO MOVED, STATUS REPORT ON NEW DISTRICT COMPLEX - CONSIDERATION OF PROGRESS PAY ESTIMATE FROM VALUE BUILDERS - CONSIDERATION OF MISCELLANEOUS BILLS RELATING TO THE PROJECT - REQUEST FOR RELEASE OF FUNDS FROM BANK OF AMERICA Mr. Holzmeister reported that the certified payroll records from Value Builders have not yet been received. The Board called a special meeting for 4:00 P.M. on November 6 to review the payroll records and consider the progress pay estimate from Value Builders. Director Corbett moved , and Director Cooley seconded , that payments on the new complex be approved as follows: $13,075.76 to Dale Cox; $2,742,85 to SEA; $3 ,390.23 to Chas. P. Young/Jeffries Banknote Company. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED. Director Corbett moved that the District requisition release of $3,390.23 from the Bank of America Delivery Cost Account and $277 ,697.85 from the Bank of America Project Cost Account; seconded by Director Cooley. ROLL CALL: all Directors, aye. SO MOVED. SCHEDULING OF BUDGET WORKSHOP The Chairman directed that a budget workshop be scheduled for the special meeting to be held at 4:00 P.M. on November 6 , 1986. ADJOURNMENT There being no further business before the Board, Director Corbett moved that the meeting be adjourned; seconded by Director Hamilton. All Directors, aye, by voice vote. SO MOVED at 10:02 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By 4 /, n L. Corbett, President J t -6- Prepared b Susan M. Craig, Deputy District Clerk�y smc d5a.25 -7-