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HomeMy WebLinkAbout1987-09-21 Min - Board REGULAR MEETING September 21, 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 Aguera was expected. EMPLOYEES PRESENT: Tom Buckhouse, Paul Colburn, Peter Holzmeister and Susan Macdonald. CONSULTANTS PRESENT: Counsel John Phelps. OTHERS PRESENT: Erin Carroll was present in the audience. APPROVAL OF MINUTES Director Sutton noted she would _like to make the following corrections to the draft minutes of August 17, 1987: on page three, change "Lahontan" to "Water Quality Control Board, Lahontan Region;" on page 5 identify b name or title the individual in charge of the Proposition 55 loan on page 8, add "The committee members indicated the would program; Board after the masthead designs are submitted " to the get back to the ,.... Thereafter, she moved that the minutes of Aug 17 end of paragraph 2. corrected by herself , and also to include the � 1987 be approved as Phelps at the last regular meeting. The corrections noted by Counsel motion was seconded by Director Aguera. ROLL CALL: all Directors aye, with the exception of Director Cooley who voted "no," stating that there is an obvious absence of his conversation regarding acquisition and funding of the new computer. SO MOVED, BILLS FOR APPROVAL Upon request, Mr. Holzmeister clarified that the eight ltracom speakerphones for the new complex were authorized b the Boa useeral meetings ago; these are regular desk phones, he said. Board several asked that the description of the bill from Valle S1 Director Sutton from "Slurry seal, 12' wide x 900' long as per bid," Slurry Seal be changed P to . .9 as per quote." Director Maass moved , and Director Aguera seconded, that the bills presented for consideration be approved for payment. All Directors a e by voice vote. SO MOVED. y MANAGER'S REPORT San Sperry letter re FmHA bond indenture Manager Holzmeister reported that Bond Counsel Sperry has turned resolu i _ of the FmHA indenture matter over to Russell Mays of the Office of Generali Counsel , He will keep the Board USDA, Farmers Home Administration. informed. -1- New District complex The office staff, Mr. Holzmeister noted, moved into the new building on Saturday, September 19. Future Board meetings will be held in the new Board room. PUBLIC INPUT There was no public input. CORRESPONDENCE Bi-state compact Mr. Holzmeister said there is a meeting scheduled for 8:30 A.M. on October 2, 1987 at the Truckee Tahoe Sanitation Agency to accept input from having an interest in the bi-state compact, people COMMITTEE REPORTS Director Corbett noted there was an Electric Committee meeting to discuss a matter which will be heard later during this meeting. COMPUTER HARDWARE AND SOFTWARE - CONSIDERATION AND POSSIBLE APPROVAL OF AGREEMENTS FOR ACQUISITION OF IBM HARDWARE AND OR COM SYSTEMS SOFTWARE Provided in the Board packets, Mr. Holzmeister stated projected cost ofthe computer system u , wer e reports on the an implementation schedule. He reviewed financing alternatives, and sewed these reports with the Board. A copy is attached for reference. Questions were asked about variable versus fixed interest rates what available through other lending institutions and whether or n' t is computer system will reduce the number of employees necessaryto a new operate efficiently. Director Sutton asked that the Finance Supervisor oobtain interest rates from Heart Federal and Bank of America in Truckee. After some discussion, Director Maass moved that , after checking rates at Bank of America and Heart Federal to determine if they have a fixed equal or better , the Board authorize Paul Colburn and Peter Holzmeisterate talk with Government Leasing and Amplicon and proceed with agreements to outlined in the reports for the IBM 36 and a g is as appropriate software. Director Aguera seconded the motion. Manager Holzmeister noted that the m savings to the District will be a monthly approximately $300, ROLL CALL: all Directors , aye. Director Sutton clarified that a resolution author the agreements would be presented to the Board at the next meeting. authorizing MOVED. ting. SO REQUEST FROM WESTSTAR CABLE TELEVISION Representatives from WestStar are requesting permission to change equipment at the Northside Well site. Mr. Hanson said their a container building and two satellite television re they currently have the site. Recently they were informed by various e1 ro dishes located on p gram providers of -2- �^ their intent to relocate to a different satellite. This requires WestStar to also "look" in another direction and at a different satellite. In order to continue the same programming it was necessary for them to install a third satellite television receive dish (portable) at the present site. They provided a drawing highlighting the location of the dish. Director Sutton stated she feels the $200 annual lease fee is too little , and suggested raising the amount to $500. Director Maass moved that the Board approve WestStar's request subject to them following the terms of the lease relating to amendments; further, that a possible increase in the annual lease amount be considered at the first meeting in January 1988. MOTION FAILED for lack of a second. Director Cooley moved to let WestStar proceed with drawing up plans and specifications for adding the third receive dish and instructing Counsel to draw up an appropriate amendment to the lease for consideration at the next regular meeting; seconded by Director Maass. At Director Sutton's request, Director Cooley amended the motion to include an increase in the lease fee from $200 per year to $300 per year. Director Maass disagreed and withdrew his second. Director Cooley moved that WestStar be authorized to go forward with their plans; seconded by Director Maass. ROLL CALL: all Directors, aye. SO MOVED. Director Cooley moved that the lease agreement allow three satellite dishes on the site rather than two, and that there be no change in rent; seconded by Director Maass. ROLL CALL: all Directors , aye, with the exception of Director Sutton, who voted "no." SO MOVED, p ACCEPTANCE OF 1986 AUDIT Mr. Holzmeister noted that Arthur Andersen & Company financial statements for the electric and water operations , the 1986 management letter covering both 1985 and 1986 , and rations , the REA recommendations for improvement of accountinga letter containing controls measures. The financial statements procedures and internal ents reflected the following changes. 1) An adjustment to properly write-off the portion of the old building which was destroyed as of year-end; the adjustments for electric and water operations were made to the plant accounts and the reserve for use and deterioration of plant. There is no affect to the net plant balances resulting from this adjustment. 2) Adjustments to the District's restricted fund balances. These changes (made at the Board's request) reflect a reallocation of interest and restricted balances attributable q ) the new building. to Director Sutton made note of the June 30, 1987 date on the letter from Arthur Andersen and asked why she was not copied earlier. Mr. Holzmeist er said he believes their letter was dated as of the date the actual audit was completed , not when it was written. Director Sutton noted several corrections that should be ma - the Statements of Sources and Uses of Cash for the de to the audit W include one item titled "electric;" this should be changed Department anged to "water." -3- Also, regarding the Ward lawsuit on page six, the audit indicates the case was settled in January of 1987. She said she doesn't think it was settled until later in the year. Director Cooley asked that the correct date of settlement and total amount of damages paid be included in the final audit. Director Maass moved, and Director Aguera seconded, that Arthur Andersen be asked to make the noted corrections to the audit , and that acceptance of the final audit be considered at the next regular meeting. Director Cooley asked that the motion include direction to include the total amount of the Ward settlement in the audit documents; Directors Maass and Aguera agreed to amend the motion accordingly. All Directors, aye, by voice vote. SO MOVED, APPROVAL AND ACCEPTANCE OF TAHOE DONNER SUBSTATION PAVING PROJECT Engineer Tom Buckhouse noted that the Tahoe Donner Substation improvements have been completed by John Boren in accordance with the contract provisions , and he recommended accepting the project and approving payment in the amount of $18 ,950 less the 10% retainage (a payment of $17 ,055). Director Sutton noted that she did not receive a copy of the certified payroll on this project. Mr. Holzmeister advised that the District has never requested certified payroll records except on the new complex and asked if the Board wants him to request these records on a regular basis. He noted there is no requirement to obtain this data; the contractor is required to pay prevailing wages, and his employees have the right to protest if they are not receiving them. There was no direction from the Board. Director Maass moved, and Director Aguera seconded , that the Board adopt Resolution No. 8744 approving and accepting the Tahoe Donner Substation improvements and directing filing of the notice of completion; further authorizing payment to John A. ' Boren, Jr. in the amount of $17 ,055. ROLL CALL: all Directors , aye , with the exception of Director Cooley, abstained without any explanation. SO RESOLVED. who APPROVAL AND ACCEPTANCE OF AIRPORT BUSINESS PARK WATER DISTRIBUTION SYSTEM Attorney Phelps stated that he has reviewed the resolution and related documents pertaining to the acceptance of the Airport Business Park/Brown Development Company water system and found them to be in order. Engineering Technician Black noted that Engineer Sauers has also recommended acceptance. Electrical Engineer Buckhouse advised that the electrical portion of this project will be ready for acceptance in about three to four weeks time. Director Cooley moved, and Director Aguera seconded, that the Board adopt Resolution No. 8745 a p approving and accepting the Airport Business Park water distribution system for ownership, operation and maintenance. Such resolution also authorizes the Clerk to record the Bill of Sale f ch or t system with the Counties of Nevada and Placer. ROLL CALL: all Directorshe aye. SO RESOLVED. , CONSIDERATION OF REQUEST BY SPPCO TO SERVE A CUSTOMER UNDER THE FRINGE AREA -4- "- AGREEMENT Mr, Holzmeister advised that , upon notice by the PUD, Sierra Pacific stopped progress of the line extension to the Meeks residence (located within the District's boundaries). They have requested permission to continue their construction and to serve the customer under the terms of the PUD/SPPCo fringe agreement. Mr. Buckhouse explained that Sierra Pacific requires a new customer to bear the entire cost of line construction up-front. When the project is complete, they calculate the amount of free footage based upon the number of electrical appliances in the residence. He estimated the cost of new service from Sierra to be approximately four to four and one-half times less than what the District would charge. Director Cooley stated that , In his opinion, the District should equal or surpass the service offered by a private utility. Director Sutton noted that if the lines are built by the developer, the rates to the customer will be less. It was generally agreed that staff should work out a proposed solution before approaching Mr. Meeks. Mr. Holzmeister indicated it will be necessary for the Board to make a determination if the possible solution is contrary to established policy. Note was made that the Truckee Sanitary District requested service from Sierra Pacific rather than the PUD for their lift station located same vicinity. Director Sutton said she is offended that in the service from Sierra Pacific and thinks the should participate TSD requested Y p ticipate in the cost of the line extension. After some discussion, Director Maass moved that a letter be written to Mr. Meeks advising that the TDPUD intends to serve him, the TSD lift station and any other customer located within the boundaries of the District. Director Sutton seconded the motion. No vote was taken on this motion. After more discussion, Director Maass moved that the District deny Sierra Pacific's verbal request to serve Mr. Meeks under the fringe agreement, and reaffirm the PUD's right to serve an ' District boundaries; seconded b Director electrical customer within y ctor Sutton. ROLL CALL: Cooley abstained, giving no explanation; all other Directors, aye. SO MOVED, Director Maass noted that the Electric Committee should meet to discuss this matter and bring a recommendation to the Board at the next regular meeting. g ADJOURNMENT There being no further business before the Board, Director A uera moved that the meeting be adjourned. The motion was seconded by Director Maass -5- and passed unanimously at 9:30 P.M. TRUCKEE DO NER PUBLIC TIL TY DISTRICT !�) Jo Corbett, President P ared by Susan Macdonald, Deputy District Clerk sm/d5c/8 -6-