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HomeMy WebLinkAbout1987-07-06 Min - Board 100-1 REGULAR MEETING July b, 1987 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Corbett at 7:07 P.M. in the Tahoe Truckee Unified School District Board room. ROLL CALL: DirectorzAguera, Cooley, Maass, Sutton and Corbett were present. EMPLOYEES PRESENT: Debi Black, Peter Holzmeister and Susan Macdonald. CONSULTANTS PRESENT: Counsel John M. Phelps. OTHERS PRESENT: C. R. VanLandingham and Ladelia Leech-Tomlinson, APPROVAL OF MINUTES Director Sutton moved, and Director Cooley seconded, that the Secretary be directed to place the minutes of June 19 1987 in final form. All Directors, aye, by voice vote. SO MOVED, Director Maass moved, and Director Sutton seconded, that the Secretary be directed to place the minutes of June 8 , 1987 in final form. All Directors, aye, by voice vote. SO MOVED. Director Maass moved that the Secretary be directed to place the minutes of June 15, 1987 in final form; seconded by Director Sutton. All Directors, aye , by voice vote. SO MOVED, Director Cooley moved, and Director Aguera seconded, that the minutes of June 24, 1987 be placed in final form. All Directors, aye, by voice vote. SO MOVED. STATEMENT OF GENERAL FUND AND BILLS FOR APPROVAL Mr. Holzmeister explained that the $225 payment to the Nevada County District Attorney is an employee payment for a dependent. Concerning the listing of approved billings, it was noted that the date the payment to Value Builders was approved by the Board should be included. Payments to Northstar Lighting Company, NorCal Electric, and Guardian Insurance were briefly discussed. Mr. Holzmeister advised that the employees were formerly insured through Blue Cross then, when the rates went up, the District's insurance carrier placed the employees with Travelers. When Travelers' rates went up, Gold Cities placed the employees with Guardian. Director Sutton stated she doesn't think the Manager has the authority to change the health coverage. She said she is concerned about something of this nature being done without the Board's knowledge or approval. Mr. Holzmeister noted that the Memorandum of Understanding requires the District to maintain health insurance benefits at the same level as when '^ the MOU was entered into. Director Maass moved, and Director Cooley seconded, that the bills -1- •-- presented for consideration by approved for payment. ROLL CALL: Aguera, Cooley, Maass and Corbett, aye. Sutton, no. SO MOVED. MAN ER."S REPORT Report re District eligibility for REA loans Mr. Holzmeister reported that he has no definitive answer as to the District's eligibility for REA loans yet. He will pursue the matter further and keep the Board informed. He will also determine whether the PUD's policies have an effect on eligibility. Authorization to request quotes rather than bids on fencing and telephone sets At the special meeting Mr. Holzmeister reported to the Directors that he would like to acquire additional telephones. At that time he thought the cost would exceed $4,000, and that a call for bids would have to be issued. It now appears that the purchase is substantially below the bid limit, and he asked the Board's permission to go forward with obtaining quotes and purchasing the telephones. The majority of new telephones are necessary because there are now more rooms than there were in the old building. The telephones also serve as a paging system. Cost of the telephones is $375 each plus tax. Director Aguera moved that staff be authorized to go forward with purchasing seven telephones; seconded by Director Maass, ROLL CALL: Directors Cooley and Sutton no• Directors Aguera, Corbett and Maass, aye. SO MOVED. Insurance on Soma Sierra Tank reconstruction project Mr. Holzmeister noted that he has been in contact with Crawford and Company regarding a definitive answer on insurance coverage for the Soma Sierra tank. Crawford has been instructed by Nationwide Insurance to consult with a California attorney for a definition of personal versus real property under California law. Once they have an answer they will respond to the District. The Manager said that Attorney Jim Porter suggested waiting for a response from the insurance company prior to spending research time on the matter. After some discussion the Board directed Counsel , by consensus, to analyze the District's coverage. PUBLIC INPUT There was no public input. CORRESPONDENCE - DISCUSSION AND POSSIBLE DIRECTION June 22, 1987 letter from Assemblyman Chandler re SB553 Note was made of the June 22 , 1987 letter from Assemblyman Chandler acknowledging the District's opposition to Senate Bill 553. -2- damages the District might incur; seconded by Director Maass. ROLL CALL: Corbett, no; all other Directors , aye. SO MOVED. Investments Director Cooley stated he would like to see the District's money invested solely within the United States. Counsel Phelps said State Code governs where District money may be invested. Mr. Colburn provided the Board with a summary of investments and their sources. At the present time, he said, the District invests all of its funds in the State of California Local Agency Investment Fund (LAIF). He also provided a copy of the most recent annual report for LAIF which summarizes the results of the fund for the fiscal year ended June 30, 1987. There was some discussion, and Director Sutton asked Director Cooley to prepare a draft letter concerning the PUD's position on foreign investments for review by the Board at the next meeting. SO MOVED by consensus. Authorization to close out cathodic protection fund In accordance with the 1979 agreement, Dart agreed to pay $35,000 into the Districts general fund for cathodic protection investigation and mitigation on the Tahoe Donner water distribution system. The payment was In full settlement of any claims of the PUD arising out of the design or construction of the water distribution system by Dart. Since receiving this money in 1981 , the PUD has incurred costs of $21 ,255.65 associated with cathodic protection. The majority of these costs were for studies and work done by Harco Corporation, Cook Associates and Sauers Engineering. As of this date, there remains $13,744.35 in the general fund. Counsel Phelps , who has reviewed the original document, has said these funds are available for whatever purpose the District wishes, Director Maass moved, and Director Sutton seconded , that the restricted account for cathodic protectimi be closed and the funds be transferred to the capital investment fund. ROLL CALL: all Directors, aye. SO MOVED. PENSION ACTUARY REPORT -- DISCUSSION AND POSSIBLE ACCEPTANCE This matter was tabled to a future meeting. STATUS REPORT ON PROPOSITION 55 - AUTHORIZATION TO SUBMIT LETTER OF INTEREST The state has adopted the priority list of applicants for funding under the Safe Drinking Water Bond Law of 1986; funding is likely. To initiate the process, the District must send a letter of intent to file the formal application. After review of the draft, Director Maass moved that the District submit a letter of intent to file the formal application for funding under Proposition 55; the motion was duly seconded. ROLL CALL: all Directors, aye. SO MOVED. -7- June 19, 1987 letter froze Wilderness Station requesting permission to trespass over PUD property Jim Norton of the Wilderness Station explained to the Board that he owns and operates a horseback riding stable located at Hilltop. He would like permission to use a trail that starts from the northwest corner of Hilltop and crosses below the springs on PUD property and enters forest service lands. At one time it was a railroad spur track and is quite satisfactory for use on horseback. Mr. Norton advised that he has acquired a special use permit from the Tahoe National Forest U. S. Department of Agriculture for the purpose of guided horseback rides along the river. He said he is presently insured and has named the Tahoe National Forest and Hilltop as additional insureds. He would also name the PUD as additionally insured. He is willing to go to the expense of preparing and maintaining the trait. If allowed to cross PUD lands, Mr. Norton would eliminate an extreme danger to riders and horses. Presently, he takes riders down Highway 267 to South River Street and down South River Street to enter forest service land. Discussion ensued. It was mentioned that Mr. Sassarini has complained numerous times about trespass over PUD easements near his residence and unauthorized use of property owned by the PUD in that vicinity. Director Cooley noted that the new proposed route does not go close to Nick Sassarini's property. Erosion and the steepness of the proposed trail were discussed. Karl Kuttel, a property owner in the area being discussed, noted that he is bothered by motor bikes using the PUD's easements. Director Maass said he would like public use of PUD land placed on the agenda as a policy item. Director Cooley moved to place the matter on the next regular meeting agenda; seconded by Director Maass. ROLL CALL: Sutton, no; all other Directors, aye. SO MOVED. June 8, 1987 letter from Counsel Perrault re Ward vs. Kuttel. The Board was provided a copy of the stipulated dismissal signed by Judge Ramirez of the United States District Court, Eastern District of California in Ward vs. Kuttel , et al. It was noted that the insurance company participated in reaching an out of court settlement on behalf of the District. Director Sutton said she thinks it is a tragedy that the District allowed the insurance company to settle, and asked that the Board be informed of the settlement amount. Karl Kuttel, present in the audience , stated that the settlement is confidential. After some discussion, Director Maass moved that the settlement document be made public; seconded by Director Sutton. Motion failed, as no vote was taken. Director Sutton moved that the Board be provided with copies of the settlement document in the next Board packet; the motion was duly seconded. ROLL CALL: Aguera and Corbett, abstained; all other Directors, aye. SO -3- ,. MOVED. May 29, 1987 letter from Grand Jury re cathodic protection Note was made that the Grand Jury acknowledged (by letter dated May 29, 1987) the Districts letter regarding cathodic protection. June 22, 1987 letter from Board of Supervisors re water shortage With respect to the letter of June 22, 1987 from the Board of Supervisors concerning an alleged water shortage, by consensus, the Board directed the Manager to advise the Supervisors that the District is not experiencing such shortage. REQUEST OF DOWNTOWN MERCHANTS RE WATER SERVICE TO PARK Mr. Holzmeister advised that Don Delaney of the Truckee Fire Protection District reviewed the Merchants AssociAtion letter of July 2, 1987 requesting that the fire fee portion of the installation charges for water service to the Trout Creek Park be waived, and indicated his approval. Director Maass moved, and the motion was duly seconded, that the fees be waived in accordance with policy and subject to written approval by the Fire District. ROLL CALL: all Directors, aye. SO MOVED. CONFLICT OF INTEREST CODE - POSSIBLE DIRECTION After some discussion, Director Cooley moved that the Board adopt Ordinance No. 8703 repealing the District's prior conflict of interest code and adopting a new conflict of interest code. The ordinance reflects the designated employees who are required to file financial disclosure statements as well as the type of financial interest that such designated employees shall disclose. The filing deadline is to be April 1 of each year and shall cover the preceding year. The motion was seconded by Director Maass, ROLL CALL: all Directors, aye. SO ORDAINED. DISCUSSION OF UNAUTHORIZED USE OF DISTRICT PROPERTY AT TONINI SPRINGS - POSSIBLE DIRECTION Director Corbett provided photographs of the trail crossing District property near Tonini Springs which has been used by horsemen. Mr. Holzmeister noted there are "no trespassing" signs at the top and bottom of the hill, and the Sheriff's office has been asked to see that they are enforced. Local horsemen have committed not to use the trail again unless the PUD grants specific permission; however, motorcycles and three-wheelers are still using the trail. After some discussion, Director Maass moved, and Director Aguera seconded, that the Manager be directed to adhere to the current policy of the Board concerning prohibition of trespassing on District land. ROLL CALL: all Directors, aye. SO MOVED. Director Sutton suggested that the Manager write to Jim Norton of the Wilderness Station advising him of the Board's direction so there is no -4- misinterpretation regarding use of the trail by horsemen crossing District property. The Board concurred. RESOLUTION ACCEPTING EASEMENT FROM BROWN DEVELOPMENT CO. It was determined that the public utility easement over a portion of AP#19-440-13 provided by the Brown Development Company for the Airport Business Park is in order. Director Maass moved, and Director_ Cooley seconded, that the Board adopt Resolution No. 8729 accepting the easement from the Brown Development Company. ROLL CALL: all Directors, aye. SO RESOLVED, Director Sutton asked that a map showing the easement be provided to the Board and attached to the deed for future reference. RESOLUTION ACCEPTING EASEMENT FROM THE TRUCKEE TAHOE AIRPORT DISTRICT Counsel Phelps noted that his firm is also counsel to the Truckee Tahoe Airport District , but that he had not advised the Airport District with respect to the easement or the deed. Engineering Technician Black advised that the easement is in order, and Director Maass moved that the Board adopt Resolution No. 8730 accepting a public utility easement from the Truckee Tahoe Airport District for the Airport Business Park; seconded by Director Cooley. ROLL CALL: all Directors, aye. SO RESOLVED. CONSIDERATION OF REQUEST FOR EASEMENT ABANDONMENT - NANCY DAVIS The Board reviewed staff's recommendation to go forward with granting Nancy Davis' request for an easement abandonment, and Mr. Buckhouse explained how the present parcels are being served with electricity. Director Maass asked that the Board be informed as to how the raw acreage in the vicinity will ultimately be served, and Director Sutton requested maps showing adjacent parcels and available easements. Director Maass moved that the item be tabled to the next regular meeting; SO MOVED, by consensus. REVIEW OF BIDS FOR UPGRADING COMPUTER SYSTEM; POSSIBLE DIRECTION Mr. Holzmeister noted that the District recently opened bids for a computer upgrade that would allow use of the current software. Two bids were received on the Micro PDP 11/73, one from Data Concepts in the amount of $36,569.68, and the other from Digital Systems in the amount of $35,864. A bid for the Micro Vax II was received from Digital Systems in the amount Of $9131074. The Manager said it has become critical that the District resolve its computer problems as soon as possible, as the present system is detrimental to office productivity. Due to disk limitations , either payroll or accounts payable/inventory can be one-line at one time. Finance Supervisor Colburn advised that Digital Systems is requesting $283,840 in relicensing fees (an amount substantially higher than the $2 ,900 they originally proposed in December). He stated he thinks the fee is excessive especially for the Micro PDP 11/73 option since no software changes are required. With the additional charge DSI would levy when the -5- District upgrades to the Micro Vax II, it would appear that the Micro PDP option is no longer cost effective. Counsel Phelps noted that there is a possibility DSI is violating the anti-trust law. Mr. Colburn said he feels the District should consider other possible software alternatives. One that appears to be cost effective would be to convert the financial applications onto another computer and continue to process billing on the present computer. He reviewed a cost analysis of upgrading to a Micro Vax II to purchasing an IBM System 36 for use with the current billing system. Mr. Colburn recommended returning Data Concepts cashier's check, as DSI is the low bidder. Since DSI's bid is good for 60 days , he thought the District should delay any decision on the award or rejection until possible alternatives can be analyzed. Director Corbett moved that the Board authorize Mr. Colburn to go forward with gathering information on the IBM System 36 and Oregon Computer software for presentation to the Board at the August 3, 1987 meeting. The motion was seconded by Director Aguera. ROLL CALL: Aguera, aye; Cooley, no, stating he is concerned over the excessive level of sophistication the District seems to be striving for; Maass , aye , stating that he won't necessarily vote yes on awarding a bid for a new computer; Sutton, no; Corbett, aye. SO MOVED. Director Maass moved, and Director Sutton seconded, that the bids received for upgrading the present computer system be rejected. ROLL CALL: all Directors, aye. SO MOVED. ACCEPTANCE OF WATER AND ELECTRIC AUDITS AS PREPARED BY ARTHUR ANDERSEN AND COMPANY There was some discussion regarding reclassification of some restricted funds, and the Finance Supervisor indicated he would prepare a report for Board review at the next regular meeting. REPORT FROM FINANCE SUPERVISOR FnHA loan repurchase and indenture conflict Mr. Holzmeister reported that he spoke with Bond Counsel Sperry this date. Mr. Sperry reports that the indenture conflicts can be corrected. Mr. Colburn said the long-term FmHA loans have been classified as current liabilities as a result of the conflicts; the District could be required to pay the loans in full upon request. While Mr. Sperry has promised to rewrite the bond covenants to resolve the issue, another alternative would be to purchase the loans as offered by Farmers Home. At the present time, the District owes FmHA. $534 ,430. Based on preliminary estimates, the loans could be purchased for $391 ,000, The actual pricing of the loan would be July 10, and would be based upon the Treasury rates then being paid. After discussion, Director Cooley moved that the Board retain the loans and pursue Sam Sperry in the most severe legal avenues to correct the indenture conflicts and, if not corrected, that Mr. Sperry be sued for whatever -6- 1000*- CLOSED SESSION The Board adjourned the meeting to closed session at 11 :42 P.M. in accordance with Government Code Section 54956.9(c) to discuss pending litigation. RETURN TO PUBLIC SESSION The meeting was returned to public session at 12:37 A.M. No action was reported. WATER DEPARTMENT CAPITAL ITEMS FOR 1987 Mr. Holzmeister reported that the water committee endorsed the realignment of Water Department facility improvement priorities at its June 10, 1987 meeting. The Board briefly reviewed the memo with preliminary project budgets from Keith Sauers accompanied by draft authorizations to perform services for the Prosser Lakeview tank and Alder Creek water line. Director Maass moved, and the motion was duly seconded, that the Board authorize Consulting Engineer Sauers to go forward with engineering for the Prosser Lakeview tank and Alder Creek water line projects, and come back to the Board with the bid documents. ROLL CALL: all Directors, aye, with the exception of Director Sutton, who voted no. SO MOVED. Special meeting A special meeting to consider a change order authorizing modification to the new District complex roof is to be scheduled for 4:30 P.M. on Thursday, July 9, 1987. ADJOURNMENT There being no further business before the Board, Director Cooley moved that the meeting be adjourned; seconded by Director Maass. All Directors, aye , by voice vote. SO MOVED at 12:42 A.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT -4 J L. Corbett, P 11.esident pared bqA.4- I " Ako�-' Susan Mac onald, Deputy District Clerk smjd5b.19 -8-