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HomeMy WebLinkAbout1988-12-05 Min - Board � REGULAR MEETING December 51 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 :08 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 Tony Rivara, Dick VanLandingham, Jeff Birchell, Destiny DiPalma, Roben Lopez, Wendy Adams, Mike Mulloy, Jennifer Garren, Terri Stone, Dawn Markward, Jake Newnham, Rob Kirsch, Matt Young, Dave Sage, Darrell Marriott, Kevin Horner, Todd Sayer, Michele Bretton and Laurie Kelly. ELECTION OF OFFICERS For the office of President, Director Sutton nominated Jim Maass; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. Director Corbett stepped down from the chair and Director Maass took charge of the meeting. Director Aguera nominated Karen White for the office of Vice President; seconded by Director Sutton. SO MOVED unanimously. Director Aguera nominated Pat Sutton for the office of Treasurer. The motion was seconded by Director Corbett. SO MOVED by acclamation. APPROVAL OF MINUTES The draft minutes of November 7, 1988 were reviewed and several corrections were suggested by the Board. Thereafter, Director Corbett moved that the Secretary be directed to place the draft in final form as corrected; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. After brief discussion, Director Corbett moved that the Secretary be directed to prepare the minutes of November 21, 1988 in final form. The motion was seconded by Director White. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL 00wh- The Board reviewed the list of bills presented for consideration, and Director White noted that the bill for propane should be included on the automatic payment list. Thereafter she moved that the bills be approved for payment; seconded by Director Corbett. 1 ,�- All Directors, aye, by voice vote. SO MOVED. MANAGER I S REPORT Annual holiday party Mr. Holzmeister advised that the annual employee party has been planned for December 17 at Northstar's golf course clubhouse. The total cost will be in the neighborhood of $1,600. Water quality The Manager noted that the water quality report for the month of October was presented at the last meeting. There continues to be a minor problem at Prosser Heights well, but it is being watched and chlorinated as needed. Budget for 1989 Mr. Holzmeister said that the budget is in the process of being copied and will be provided to the Board soon. No rate increases are proposed, but he mentioned that the Board may want to consider raising various fees to meet revenue requirements. After some discussion, Director Sutton moved that the public hearing set for December 19 to discuss the budget be cancelled, and that a workshop meeting be set for that date; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. FERC action on Boca Manager Holzmeister reported that the Federal Energy Regulatory Commission has denied the District's request for a stay in the Boca license. He suggested meeting with Ferris Gilkey of R. W. Beck to discuss the PUD's options. After some discussion, Director Maass suggested meeting with Norm Shumway and asking that he introduce special legislation allowing a stay of the Boca license. Manager Holzmeister said he would contact Congressman Shumway and Mr. Gilkey. Upon request by a member of the audience, the Chairman briefly explained the Boca hydroelectric project. PUBLIC INPUT There was no public input. CORRESPONDENCE There was not correspondence discussed by the Board. COMMITTEE REPORTS Finance Committee 2 w" Director White reported that the Finance Committee met since the last Board meeting and discussed work orders, completion of work orders by year-end audit, the audit contract, format for financial reports and the budget. 1.9 ACRE PARCEL - JOHN PHELPS' LETTER OF NOVEMBER 11 1988 Counsel Phelps advised that when Richard Burge first approached the District about a potential purchase of its 1.9 acres, he disclosed that his firm had represented Mr. Burge in the past and that they had been asked by him to represent him in this transaction, but had declined. At that time Mr. Phelps advised that it would be proper and ethical for him and his firm to represent the District in the transaction so long as the District was aware of the past relationship with Mr. Burge and consented to the continuing representation. Since an agreement has been reached between the District and Mr. Burge, the firm of Porter, Simon, Graham and Phelps has been called upon to correspond with Mr. Burge several time on behalf of the District regarding the state of the title and other matters. Mr. Phelps wanted to remind the Board of the past representation of Mr. Burge and confirm that it is acceptable for his firm to continue representing the District in this transaction. Director Corbett noted that the Directors have been made aware of Counsel' s past relationship with Richard Burge, and he moved that the Board confirm that it is acceptable for Mr. Phelps' to continue representing the District in the sale of the 1.9 acre parcel. RECONSIDERATION OF PROPOSALS TO AUDIT HIRSCHDALE PROJECT The Chairman made note of the November 22 letter from Dan Cook concerning the District's decision to use Terry Lowell for the Hirschdale water system rehabilitation audit. It was Mr. Cook's feeling that Terry Lowell may be an inappropriate person to conduct the investigation in this particular instance, and his letter set forth reasons for his belief. There was some discussion, and the Chairman read into the record portions of Director Sutton's December 2, 1988 letter to Dan Cook pertaining to the retention of Terry Lowell to conduct the audit of the Hirschdale project. Her comments were as follows. 1. It is the Board's prerogative to hire any qualified consultant it wishes to perform any audit. The parties being audited don't have a right to participate in that decision, or to influence it. The audit will be easier to perform with your cooperation, but it's not necessary for you to be pleased with the Board's choice. AIIM- 2 . Your letter of "preemptory challenge" has already caused an unnecessary delay in the progress of the audit. 3 �- 3. Knowing Terry Lowell, and having worked with him, I have enough confidence in his professionalism to believe that he will perform the audit in an objective manner in spite of any previous association he may have had with you on other problems. 4. Knowing you, and having worked with you, I have enough confidence in your ability to believe that a project audit, regardless of who performs it, is unlikely to cause you much, if any, damage. Director Maass added that if Terry Lowell is retained to perform the audit and there are allegations, the Board will defend the audit to the nth degree. Director Sutton moved, and Director Aguera seconded, that the Board reaffirm its direction to retain Terry Lowell to perform the Hirschdale audit. Corbett, no; all other Directors, aye. SO MOVED. REVIEW AND CONSIDERATION OF EAST SOUTH RIVER STREET WATER LINE AGREEMENT CONCERNING GRACE ROBERTSON'S PROPERTIES Mr. Holzmeister noted that the agreement concerning Grace Robertson's properties incorporates changes requested by the Board at the last meeting. No comment on the agreement has been heard from Mrs. Robertson. It was clarified that the cost allocation to benefiting property owners will be discussed at a meeting during January. Director Corbett moved, and Director White seconded, that the Board approve the agreement. ROLL CALL: all Directors, aye. SO MOVED. ACCEPTANCE OF SIERRA PINES DEVELOPMENT (LUDVIK LIMBERG) Ms. Black explained that the Sierra Pines Development is located in Placer County. The water system includes a looped system which is connected to the District's water mains in both Ponderosa Drive and Pine Cone Drive. Plans for water system were approved by Consulting Engineer Sauers in September of 1985. Inspections were made during construction and acceptable as-builts have been provided. The water system has been constructed according to District standards and the development agreement. District Engineer Hyde is recommending acceptance of the system. Director Corbett moved, and Director Aguera seconded, that the Board accept the Sierra Pines Development for operation. All Directors, aye. SO MOVED. Ms. Black advised that related easements will be presented for e^ acceptance at a future meeting. REQUEST FOR ABANDONMENT OF EASEMENT BY JAMES O. CURTIS 4 �^ Engineering Technician Black noted that after reviewing the request of James O. Curtis for the abandonment of the unused easement across AP#44-430-43 and 44-430-42, staff is recommending that the District release its interest in the 5' westerly side lot line easement of Lot 233 and the 5' easterly side lot line easement of Lot 234. She noted that power is provided to the parcels from a pole off of the properties; water is provided to the parcels within the 10 ' front lot line easement. Director White moved that the Board abandon its interest in the easements as requested; seconded by Director Sutton. All Directors, aye, by voice vote. SO MOVED. RESOLUTION EFFECTING A COMPENSATION ADJUSTMENT FOR NON-BARGAINING UNIT EMPLOYEES The Board reviewed the draft resolution which would increase salaries of the Office Supervisor, Finance Supervisor, District Electrical Engineer and Executive Secretary by 3% and increase the District's contribution to the deferred compensation plan by 1%. Mr. Holzmeister noted that the Civil Engineer's salary will be considered six months from his date of hire. After some discussion, Director Maass asked for a comparison of the deferred compensation plan for non-bargaining unit employees to the Union's defined benefit plan. He expressed the feeling that all employees should be treated equally. Director Corbett moved, and Director White seconded, that the Board adopt Resolution No. 8834 effecting a 3% compensation adjustment for non-bargaining unit employees. ROLL CALL: all Directors, aye. SO RESOLVED. Director Sutton asked for a report showing the gross salary of all employees, including overtime paid, from January 1 to December 1, 1988. Mr. Holzmeister indicated he would provide a copy to the Board. DIRECTION TO SCHEDULE PUBLIC HEARING TO CONSIDER AN ORDINANCE EFFECTING A COMPENSATION ADJUSTMENT FOR THE GENERAL MANAGER The Chairman directed that a public hearing be scheduled to consider a compensation adjustment for the General Manager at 7:3 0 P.M. on December 19. AUTHORIZATION TO WRITE OFF MISCELLANEOUS BAD DEBTS The Finance Supervisor provided a listing of the electric and water miscellaneous accounts receivable which are now considered to be uncollectible. He noted that, after Board action to write off the bad debts, the accounts will be referred to the Credit Bureau for collection processing. After some discussion, Director Maass noted that small claims action should be initiated to minimize these write-offs; Director 5 -- Sutton agreed. Director White suggested formulating a policy to deal with miscellaneous bad debts in the future, and the Chairman referred this matter to the Finance Committee. Director White moved that the Board accept the miscellaneous accounts submitted as write-offs. Director Aguera seconded the motion. All Directors, aye, with the exception of Director Sutton who abstained. RATIFICATION OF POLICY RE CAPITALIZATION OF JOINTLY USED ELECTRIC/WATER ASSETS The Board reviewed the draft policy to capitalize jointly used assets and, thereafter, Director Corbett moved to accept the policy as written; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. REVIEW AND POSSIBLE ACCEPTANCE OF TOUCHE ROSS AUDIT PROPOSAL Manager Holzmeister reported that the Finance Committee met and reviewed Touche Ross' letter of proposal to perform the 1988 audit. Their fees are based on the amount of time required at various levels of responsibility plus actual out-of-pocket expenses. Total fees for the audit will be $17,200 plus not-to-exceed expenses of $3 , 125. In addition, fees for the audit requirements of OMB Circular A-128 will be $1, 000. They asked for payment of $13 , 325 in March and $8, 000 in April. After some discussion, Director White moved that the Board accept Touch Ross' proposal, but that half the payment be made in March and the other half be made upon completion of the audit. Director Corbett seconded the motion. ROLL CALL: all Directors, aye. SO MOVED. CLOSED SESSION The Board adjourned to closed session at 8:26 P.M. pursuant to Government Code Section 54956.9 (a) , to discuss the Rudy Schroeder matter, and pursuant to Section 54956.9 (b) and 9 (c) to discuss pending litigation. RETURN TO PUBLIC SESSION The meeting was returned to public session at 9:45 P.M. Counsel advised that the Nevada County Groundwater Ordinance was also discussed during closed session pursuant to Government Code Section 54956. 9 (a) . The Chairman reported that no action was taken during closed session. ADJOURNMENT There being no further business before the Board, Director Aguera moved that the meeting be adjourned at 9:46 P.M. ; seconded by 6 Director Corbett and passed unanimously. TRUCKEE DONNER PUBLIC UTILITY DISTRICT J es A. Maass, P sident Prepared by Susan M. Craig, Deputy District Cle sac 7