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HomeMy WebLinkAbout1988-10-03 Min - Board REGULAR MEETING October 3, 1988 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Corbett at 7: 06 P.M. in the TDPUD Board Room. ROLL CALL: Directors Maass, Sutton and Corbett were present. Directors Aguera and White were absent. EMPLOYEES PRESENT: Tom Buckhouse, Paul Colburn, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps and Consulting Engineer Keith Sauers. OTHERS PRESENT: Among those present in the audience were Trista Thomson, G. B. Tucker, Jennifer Garren, Scott Holmes, Kathleen Holmes, Shelby Hagendorn, Terri Stone, Destiny Di Palma, Kevin Horner, Kevin Gunn, Eva Van Prooyen, Travis Pribble, Tom Nielsen and Ken Osburn. APPROVAL OF MINUTES Corrections were submitted by Counsel and Director to the draft minutes of September 19, 1988. After some discussion, Director Sutton moved that the Secretary prepare the minutes in final form as corrected; seconded by Director Maass. All Directors, aye, by voice vote. SO MOVED, BILLS FOR BOARD APPROVAL The Board reviewed the list of bills presented and the expenses incurred by the Manager and Director Maass on their trip to Washington D. C. on the Boca project. Director Maass moved, and Director Sutton seconded, that the bills be approved for payment. All Directors, aye, by voice vote. SO MOVED. MANAGER'S REPORT - POSSIBLE DIRECTION TDPUD Financing Corporation annual meeting Manager Holzmeister reported that the Financing Corporation met on September 12, 1988 and elected officers as follows: Robert Jones, President; Thomas Archer, Vice President; Marilyn Dedmon, Secretary. The Board approved the filing of the annual report of exempt organizations and the state and federal income tax forms. The Board also voted to amend their by-laws to provide for staggered terms of office. Each Director will hold office for a term of four years from the date of appointment, except that of the Directors appointed during 1988; two shall serve for a term of two years and three shall serve for a term of four years. Mr. 1 Holzmeister noted that Frances Benoit and Marilyn Dedmon volunteered to sit on the Board for the two-year terms. The TDPUD Board directed that the amendment to the Financing Corporation by- laws be placed on the next regular meeting agenda for consideration. Report on backflow device invoice Regarding the backflow device listed on the September 19, 1988 bills for approval, Mr. Holzmeister advised that the device was purchased from Sacramento Utilities for use at the CalTrans Maintenance Yard. The District had an agreement with Atlas Contractors, the CalTrans paving contractor, whereby the District was reimbursed for the device (including a delivery charge) . The District received $2,829.98 from Atlas on September 9, 1988. Director Sutton said this practice puts the District in the position of prescribing the answer to a developer's problem; the District would be responsible if the solution didn't work. She suggested a policy be formulated. Report on NCPA annual meeting Mr. Holzmeister noted that he and Directors Corbett and Aguera attended the Northern California Power Administration annual meeting on September 21 and 22 in South Lake Tahoe and found it to f�- be very interesting. Groundwater lawsuit The Manager reported that Special Counsel Bruce McDonough would like to meet with the Board during closed session at the October 17 meeting to discuss the groundwater lawsuit. By consensus, the Board agreed and asked that the closed session be scheduled for 8: 00 P.M. Director Sutton asked Mr. Holzmeister to provide copies of the final order on the groundwater suit to the Directors. PUBLIC INPUT Tom Nielsen, Tahoe Forest Hospital Tom Nielsen, Assistant Administrator of the Tahoe Forest Hospital, noted that he is presently coordinating the hospital 's building project. The TDPUD has assessed a large fee, he said; $26,000 for facilities fees and $14, 000 for actual work the PUD will be doing. He requested that the Board, at some future time, discuss the concept of providing a discount to the hospital and other local agencies. Discussion ensued regarding types of agencies and districts, areas r^ served by them and how they are financed. 2 ,00m`* Mr. Nielsen commended the District on its competent staff and advised that he would get together with Manager Holzmeister and Craig Woods of TTSA to discuss his ideas further. CORRESPONDENCE There was no correspondence discussed by the Board. COMMITTEE REPORTS Director Sutton reported that the Water Committee has met with Grace Robertson to discuss her concerns relative to the East South River Street water line and are moving towards a resolution of the matter. When finalized, a recommendation will be brought to the Board. PUBLIC HEARING - CONSIDERATION OF ORDINANCE ESTABLISHING INTERIM WATER RATES FOR THE COMMUNITY OF HIRSCHDALE President Corbett opened the public hearing at 7:40 P.M. Manager Holzmeister reviewed the draft ordinance with the Board. It sets forth an interim domestic flat rate of $14.41 plus a $1. 60 pumping cost monthly. Regarding the $3.00 monthly "satellite surcharge" set forth in the ordinance, Directors Maass and Sutton pointed out that it was the Board's intent to review the actual costs of maintaining and operating the Hirschdale system in six months, then consider imposing a surcharge. Manager Holzmeister advised that the punch list items remaining on the Hirschdale contract have been completed, and the Notice of Completion and Acceptance should be ready for consideration at the next meeting. After the District has accepted the project, Jess Morehouse of the State Health Department will be contacted for permission to begin operating the system. There was no public comment or questions from the audience, and Director Maass moved that the public hearing be closed at 7:50 P.M. Director Sutton seconded the motion. Director Maass moved that the Board adopt the ordinance establishing interim water rates for the village at Hirschdale; seconded by Director Sutton. ROLL CALL: Aguera and White, absent; all other Directors, aye. SO ORDAINED. RESOLUTION ACCEPTING EASEMENT FROM ESTABROOR, PIERCE AND FOWLE Note was made that, at the last Board meeting, this matter was referred to the Water Committee for review as Director Sutton thought there might be a problem. It was inadvertently placed on the agenda. 3 Manager Holzmeister said the problem mentioned by Director Sutton has to do with service of water to the Fowle property, but it is unrelated to the easements. The easement is necessary to protect the District's right to occupy the subj ect land and does not of fect discussions with Mr. Fowle. Director Sutton agreed that it would not have to come back to the Water Committee. Director Maass moved, and Director Sutton seconded, that the Board adopt Resolution No. 8827 accepting an easement from Estabrook, Pierce and Fowle. ROLL CALL: Aguera and White, absent; all other Directors, aye. SO RESOLVED. REVIEW OF PROPOSED AMENDMENTS TO MAINTENANCE/MISCELLANEOUS SERVICES POLICY; POSSIBLE DIRECTION The draft policy applying to on-going services required by the District, where the cost of such service (on an individual basis) does not exceed $10, 000 per year, was discussed. The Manager suggested adding a paragraph stating that, in determining the qualifications of a vendor, the Manager shall use his discretion and shall take into consideration such factors as possession of the appropriate contractor's license, access to proper equipment, past performance in working for the District, and proper insurance coverage. After more discussion, Director Maass asked that additional language be added between Paragraphs 3 and 4. It would state that when the General Manager determines a service is needed, a notification shall be placed in the local newspaper advertising for proposals for such service. Additionally, other advertising methods shall be used when the Manager determines the necessity. Director Maass moved that the Maintenance/miscellaneous Service Policy be adopted as corrected. The motion was seconded by Director Sutton. ROLL CALL: Aguera and White, absent; all other Directors, aye. SO MOVED. Director Sutton asked that the Board be copied with the finalized policy and also with the Hirschdale water rate ordinance. MARTIS VALLEY SUBSTATION PAVING PROJECT - CONSIDERATION OF CONTRACT CHANGE ORDER NO. 1 - CONSIDERATION OF PROGRESS PAY ESTIMATE NO. 1 - CONSIDERATION OF RESOLUTION APPROVING AND ACCEPTING THE MARTIS VALLEY SUBSTATION PROJECT AS COMPLETE AND AUTHORIZING RECORDATION WITH THE COUNTY OF NEVADA Mr. Holzmeister noted that the project is complete. He said the Board would not be able to consider the Change Order, however, since only three members were present. 4 Director Sutton disclosed that her business was a bidder on the project, and Counsel said he doesn't think there is any potential conflict. Consulting Engineer Keith Sauers advised that the access road and a portion of the work area within the substation was paved by Granite Construction Company. The work is complete and in accordance with the plans and specifications. He recommended that the Board approve Periodic Estimate for Partial Payment No. 1, excluding the change order adjustments. (Pay Estimate without the change order items is $29,340. ) Director Maass moved, and Director Sutton seconded, that the Board approve Periodic Estimate for Partial Payment No. 1, excluding the change order adjustments. ROLL CALL: Aguera and White, absent; all other Directors, aye. SO MOVED. Director Sutton asked that the Board be copied with the corrected Pay Estimate. Director Maass moved that the Board adopt Resolution No. 8828 approving and accepting the access and onsite paving at Martis Valley Substation. He asked that the title of the resolution be amended to include direction to file the Notice of Completion. Director Sutton seconded the motion. ROLL CALL: Aguera and White, absent; all other Directors, aye. SO RESOLVED. MARTIS VALLEY SUBSTATION - FEEDER NO. 1 - RECONDUCTORING PROJECT - CONSIDERATION OF PROGRESS PAY ESTIMATE NO, 1 District Engineer Buckhouse reported that the reconductoring of Martis Valley Substation Feeder No. 1 is complete and according to plans. He said the contractor has earned the total contract amount of $23 ,135; allowing for the 10% retention, the net due is $20,821.50. He recommended approval of the payment. Director Maass moved, and Director Sutton seconded, that payment to Cascade Line Construction in the amount of $20,821. 50 be approved. ROLL CALL: Aguera and White, absent; Maass, Sutton and Corbett, aye. SO MOVED. Director Maass moved that the Board adopt Resolution No. 8829 approving and accepting the reconductoring of Martis Valley Substation, Feeder No. 1, and directing the filing of the Notice of Completion; Director Sutton seconded the motion. ROLL CALL: Aguera and White, absent; all other Directors, aye. SO RESOLVED. AUTHORIZATION TO CAPITALIZE ITEMS IN THE ELECTRIC FUND Finance Supervisor Colburn reported that in a recent analysis of the property ledger he found a number of items in both funds have been capitalized based upon a percentage split. The percentage may have reflected the proper split when the asset was capitalized, but 5 presently it does not. The net effect is an improper allocation of costs between funds. Mr. Colburn proposed that the Board adopt an accounting procedure whereby any jointly used asset would be capitalized in the Electric Fund and an annual rental be calculated and charged to the Water Fund. He would also like to adjust the present records and transfer the amounts that previously were partially recorded in the Water Fund back to the Electric Fund. The proposed accounting procedure would be consistent with the way the building is presently being accounted for. The procedure would allow simplification of record keeping while allowing much more flexibility to change the allocation of jointly used assets. Director Sutton noted that this would have an affect on the value of the water system; she said she was not sure this would be good in the future. Mr. Colburn said that the total assets that would be reclassified probably amount to $50,000 or less; it would be a technical accounting change and show on the balance sheet as interdepartmental rent. There would be no difference in the net income. The Finance Supervisor explained the problems with the current procedure and discussed the property ledger and depreciation with the Board. ¢�-- Director Maass suggested that certain software may be an answer to the accounting problems. The Manager said he would prepare a report showing the organization of the property ledger and of the various motions involved in accounting. Director Sutton asked if the capitalization of jointly used assets inflates the value of the Electric Department at the expense of the Water Department. Mr. Holzmeister said that it does inflate the Electric Department's assets to the tune of $50,000, which he thought was basically immaterial. He said he would evaluate the significance to the Water Department. AUTHORIZATION TO RESTRICT CERTAIN FUNDS FOR FUTURE TELEMETRY Manager Holzmeister noted that the 1988 budget contains a line item for the future replacement of the District's telemetry system. It is planned to accumulate funds over a period of five years and then make a major investment in telemetry upgrade. At this time he requested authorization to transfer $20,000 from the Water Department general fund to a telemetry restricted fund. The $20, 000 is budgeted for this purpose. Director Maass moved that the Board authorize the $20,000 transfer from the Water Department general fund to a telemetry restricted fund; Director Sutton seconded the motion. ROLL CALL: Aguera and �^ White, absent; all other Directors, aye. SO MOVED. 6 �'- ADJOURNMENT There being no further business before the Board, Director Maass moved that the meeting be adjourned at 8:44 P.M. Director Sutton seconded the motion. All Directors, aye, by voice vote. SO MOVED. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jo Corbett, resi ent P e ared b Susan M. Craig, Deputy Distric C erk smc 7