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.
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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
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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.
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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.
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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.
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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
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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.
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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
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