Loading...
HomeMy WebLinkAbout1988-11-07 Min - Board REGULAR MEETING November 7, 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: 10 P.M. in the TDPUD Board Room. ROLL CALL: Directors Aguera, Maass, Sutton, White and Corbett were present. EMPLOYEES PRESENT: Debi Black, Paul Colburn, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps. OTHERS PRESENT: Among those present in the audience were Trista Thomson, Scott Holmes, Kathy Holmes, Jeff Birchell, Esmerelda Francias, Lori Kelly, Kristi Drinnon, Chris Markiaz and Jim Broadlenz. APPROVAL OF MINUTES Director Maass moved, and Director White seconded, that the Secretary be directed to prepare the minutes of October 17, 1988 in final form as corrected. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL After a brief review of the bills presented for consideration, Director Aguera moved that they be approved for payment; seconded by Director Maass. ROLL CALL: all Directors, aye. SO MOVED. MANAGER'S REPORT Grace Robertson's concerns re water line Mr. Holzmeister advised that Director Maass wrote a memo to President Corbett asking that the Grace Robertson matter be placed on the agenda; President Corbett asked the Manager to place the matter on the agenda under his report. Director Maass stated that when a director requests a specific item he should be consulted if it will not be on the agenda. Directors Corbett and Sutton agreed with his statement, noting that it would be common courtesy to have called him. Director Maass said he feels too much time is being spent on this matter and its time to settle it and get on with the affairs of the District. The Water Committee has sent a proposed solution to Grace Robertson regarding the East South River Street water line, but no response has been received yet. Mr. Holzmeister suggested it be discussed �, at the next regular meeting. Testing of current transformer installations 1 �^ Michael Pimental and Bruce Grow have recently completed testing the accuracy of the District's current transformers. The accuracy of current transformers affects the accuracy of the District's billing to customers with electric services that exceed 400 amps. A copy of the related memo was provided to the Board. Water quality During the month of September two tubes from the Prosser system tested positive for coliform. The District chlorinated the system for a brief period to eliminate the problem and is watching to see if a repeat of the condition is experienced. Mr. Holzmeister said he would keep the Board informed. Budget for 1989 The Manager reported that the budget is moving along quickly to completion. He said he expects to distribute the proposed budget on November 14. The Finance Committee has met with him and the Finance Supervisor and they think the Board will find the budget presentation improved over prior years. PUBLIC INPUT There was no public input. CORRESPONDENCE Department of Transportation letter dated October 19, 1988 The letter from the County Department of Transportation thanking the District for helping to make the Household Hazardous Waste Collection Day safe and successful was mentioned. CMUA letter dated October 24, 1988 Mr. Holzmeister provided copies of a letter describing the meeting of the CMUA Board of Governors to be held in San Diego on December 9, 1988. The major issue will probably be transmission access, the Manager noted, which is a key issue to the District in discussions with SPPCo, NCPA and WAPA. He asked the Board's permission to attend. The cost is estimated to be around $500. Director Maass moved, and Director Sutton seconded, that the Manager be authorized to attend the CMUA meeting on December 9. All Directors, aye. SO MOVED. W. G. Dodge letter received October 31, 1988 A draft response to Mr. Dodge's letter stating his concerns about energy and water conservation was reviewed and several corrections were noted. The Board agreed that the letter should be finalized and sent to Mr. Dodge as well as the entities he copied with his letter. 2 �^ Nevada County Water Agency Advisory Council letter dated October 25, 1988 Note was made of the letter from the Advisory Council concerning draft surface and groundwater policies. After some discussion, Director Sutton suggested it be referred to the Water Committee and also copied to Special Counsel Bruce McDonough for comment. The Board agreed. Oliver Henrickson letter Mr. Holzmeister noted that Mr. Henrickson attempted to extend a water service from one parcel he owns across to another parcel. This is contrary to District policy. After consulting with counsel, Mr. Holzmeister stated he contacted Mr. Henrickson's attorney and explained the situation. A letter has been sent to Mr. Henrickson saying that if he is willing to cooperate, the District will be happy to serve him. There was no action necessary by the Board. COMMITTEE REPORTS Water Committee Director Sutton distributed a report from the Water Committee having to do with their meeting on October 27 during which they discussed the East South River Street water line and Grace Robertson's related concerns. Finance Committee Director White noted that the Finance Committee met and discussed the timetable for the budget and audit; also, the letter from the Inspector General regarding the 1985 and 1986 audits. She said things are running smoothly for year-end, and reported that there are no items of significance requiring Board involvement. HIRSCHDALE WATER SYSTEM IMPROVEMENTS - SELECTION OF CONSULTANT TO PERFORM CONSTRUCTION PERFORMANCE AUDIT - RESCISSION OF MOTION TO APPROVE PROGRESS PAY ESTIMATE IN THE AMOUNT OF $3,865,59 TO JOE SUTER CONSTRUCTION Two proposals to perform the audit of the Hirschdale project were received, Mr. Holzmeister advised. One proposal is from Terrance Lowell Associates, who did not want to commit to a price until he had a chance to review the records. His proposal is in two phases, Phase I being review of records at a cost of $2,600, and Phase II being the audit at a price to be determined based on his findings in Phase I. The other proposal, from Keith Sauers, is to do the entire audit at a cost not to exceed $3, 000. Mr. Sauers, the Manager said, is more familiar with the District and how things are done, so he felt more comfortable in committing to a price. 3 No proposal was made by SEA in Reno. Mr. Holzmeister recommended the District award the job to Sauers Engineering, given his track record with the PUD and the price he quoted. Director Sutton said she has a problem with using Keith Sauers, and said she thinks the District needs someone who doesn't have any consulting experience with the District. Manager Holzmeister noted that Terrance Lowell has done a lot of construction management and thinks he would also do a fine job. After some discussion, Director Maass thanked Finance Supervisor Colburn for the excellent analysis of the Hirschdale project contract and said he thinks the District should go forward as soon as possible with the audit. He moved that the Board authorize the Manager to engage the services of Terrance Lowell and Associates for the audit. Director White seconded the motion. ROLL CALL: all Directors, aye. SO MOVED. (At a previous meeting the Board determined that the District would bear the expense of the audit rather than the residents of Hirschdale. ) The Board reviewed Mr. Colburn's analysis of the project and, thereafter, Director Maass moved that the Board rescind the progress payment to Joe Suter in the amount of $3,865.59; seconded by Director White. ROLL CALL: all Directors, aye. SO MOVED. POSSIBLE DIRECTION RE CAPITALIZATION OF JOINTLY USED ELECTRIC/WATER ASSETS Mr. Colburn proposed that the District adopt an accounting procedure whereby any jointly used asset be capitalized in the Electric Fund and an annual rental be calculated and charged the Water Fund. He said 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. This transfer of already capitalized assets would be approximately $89, 000. This would have an immaterial effect on both the Electric and Water financial positions as it only represents 9% and 2 .9% respectively of the book value of assets. There was some discussion, and Director Sutton said she thinks there is language in the Public Utilities Code saying two utilities must be accounted for independently. Director White noted there should be some clarification and moved that Counsel be directed to research the matter and report to the Board. The motion was seconded by Director Maass. All Directors, aye, by voice vote. SO MOVED. POSSIBLE DIRECTION RE STAMPEDE ENERGY ALLOCATION Mr. Holzmeister advised that the WAPA letter of October 17, 1988 says that if the TDPUD cannot take Stampede power at 40 mills per 4 kwh beginning immediately, WAPA will remarket it to whoever can take it. Since talking with SPPCO, Mr. Holzmeister has learned that the District's wholesale rate would be "untilted. " The fixed costs that are in the energy rate will be removed from the energy rate and placed in the demand charge. The current rate for energy is 44 mills, demand is $8.74; the untilted rate for energy is 28 mills, demand is $18.00. This change will not affect the total i bill, just shift money around within t. He said the change in energy rate from 44 mills to 28 mills makes Stampede power uneconomical. WAPA has informed the District that they will sell Stampede power to the District on a short-term basis for 20 mills or less; however, to do this they need to remarket the power and get authorization to do so in their new marketing plan. Ferris Gilkey of R. W. Beck drafted a response to the WAPA letter and after review, Director Maass moved that the letter be finalized and mailed; seconded by Director Sutton. ROLL CALL: all Directors, aye. SO MOVED. Director Sutton asked for an update on negotiations with SPPCo during closed session, and Mr. Holzmeister said he would prepare a status report for the next regular meeting. CONSIDERATION OF POLICY CONCERNING PURCHASE OF BACKFLOW DEVICES FOR INSTALLATION BY DEVELOPERS Mr. Holzmeister reported that the District recently cooperated with a contractor in the installation of a backflow device. It was purchased at cost and the PUD was reimbursed by the contractor. There was some concern expressed by the Board that the District, by specifying and purchasing the backflow device, may be relieving the contractor of responsibility for a proper functioning backflow installation. State regulations hold the water purveyor responsible for the installation and proper functioning of backflow devices. The cost can be passed on to the customer, but the responsibility stays with the District. Mr. Holzmeister said he thinks it is important that the District specify the equipment to be used in the system, and that it is advisable that the PUD cooperate with the customers by helping them acquire the proper equipment. He recommended adopting a policy containing the following provisions: 1. When a customer of the District has been determined to require the installation of a backflow prevention device, the District shall specify the type of device and provide a list of approved devices that will meet the requirements. 2. If the customer requests assistance from the District in acquiring the device, the District shall provide that assistance with all costs being borne by the customer. 3 . The customer shall arrange for the installation of the device following the manufacturers instructions. The District shall inspect the installation and proper 5 -- operation of the device. After some discussion, by consensus, the matter was turned back to the Water Committee. CONSIDERATION OF LETTER FROM USDA OFFICE OF THE INSPECTOR GENERAL RE 1985 AND 1986 AUDITS Finance Supervisor Colburn explained that in reviewing the letter from the Inspector General he found that most of their comments deal with technical wording and not any serious problems that need to be addressed. One important item to note, Mr. Colburn said, is that it was not clarified until November 1987 that the District is subject to the audit requirements included in OMB Circular A-128. This is long after the audits were completed by Arthur Andersen. As was discussed with the Finance Committee, Mr. Colburn forwarded the letter to Touche Ross for their review. Touche Ross agreed that the District is subject to the OMB Circular A-128 reporting requirements. They are reviewing further to see what changes they would need to make in their reports and what impact it would have on the audit scope. This will be an item that will be discussed in their engagement letter which should be received in the near future. Director Maass moved that the Board send letter to the Office of the Inspector General thanking them for their advice and noting that the District will comply with their requirements in the future. SO MOVED by consensus. SALE OF 1.9 ACRE PARCEL Counsel Phelps asked that the sale of the 1.9 acre parcel be placed on a future meeting agenda for discussion during open session. ADJOURNMENT There being no further business before the Board, Director Aguera moved that the meeting be adjourned; seconded by Director White. SO MOVED by unanimous vote at 9:47 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Ja#fis A. Maas , P ident 2 Prepared by Susan M. Crai , Deputy District C1 smc 6