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HomeMy WebLinkAbout1985-10-21 Min - Board REGULAR MEETING October 211, 1985 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by Vice President Maass at 7 : 00 P.M. in the TDPUD Board Room. ROLL CALL: Directors Cooley , Corbett , Hamilton and Maass were present . Director Duffy was out of town. EMPLOYEES PRESENT : Dave Rully , Bruce Grow , Pete Silva , Tom Buckhouse , Peter Holzmeister and Susan Craig were present . CONSULTANTS PRESENT: N. Robert Heyer and Counsel John M. Phelps . OTHERS PRESENT : Among those present were Shane Smith , Lisa Rosen , Pat Sutton , Dan Levenson , John Scott and John Boren , Jr . APPROVAL OF MINUTES Director Hamilton moved , and Director Corbett seconded , that the minutes of September 4 and 16 , 1985 be approved as written . All Directors , aye , by voice vote . SO MOVED, Director Hamilton moved , and Director Cooley seconded , that the Secretary be directed to prepare the minutes of September 30 , 1985 in final form. All Directors , aye , by voice vote . SO MOVED. BILLS FOR APPROVAL Responding to a question posed by one of the Directors , Mr . Holzmeister advised that the statement from N. Robert Heyer Associates in the amount of $2 9750 represents the f inal bill for preparation of the customer opinion survey commissioned by the District. Director Hamilton moved , and Director Corbett seconded , that the bills presented for consideration be approved for payment . All Directors , aye , by voice vote . SO MOVED. MANAGER'S REPORT Request for clarification - contract performance deposit Manager Holzmeister requested that the matter of contract performance deposits for PUD projects be clarified. A situation occurred in the case of the Martis Valley Substation feeder .., reconductoring project , and could occur on other projects as well . Mr . Holzmeister explained that J & S Line Construction put up a cash deposit rather than a bond . It is to the advantage of the District to get a cash deposit because it saves the District -1- the problem of fighting with an insurance company if a contractor f ails to perf orm , and the PUD has the use of that cash f or investing. He recommended that the District pay the interest earned on the deposit to the contractor as an incentive for that contractor to put up cash rather than a performance bond . The Manager went on to say that there are some projects that will be undertaken where the District supplies all the materials . In the case of the Martis Valley Substation feeder reconductoring project , the PUD supplied all the materials that were installed on the job. The only costs J & S incurred were for labor and equipment . When the Distric retains the cash deposited in lieu of the performance bond , District exposure from material suppliers is minimal . Counsel Phelps noted that his firm represents John Scott of J & S Line Construction in things unrelated to the PUD. He stated the District is free to do what it wants ( in this instance ) . The purpose of retaining the 10% is so subcontractors and suppliers can file a stop notice asking that the District pay them directly instead of the contractor , and to make sure the job is satisfactory. Legally there are no restrictions regarding payment of interest earned on a cash bond , or on keeping the cash bond and the 10% retention. Mr . Scott , present in the audience , explained that he was surprised at the fact that the cash deposit was held in the Martis Valley project , since it was returned immediately upon completion in the Tahoe Donner project . The contracts were written in the same manner , and he bid the job thinking the cash deposit would be returned in a like manner. His problem stems from having to pay interest on the money borrowed for the deposit , and the note running for a longer period than was anticipated. After discussion , Counsel Phelps stated that a policy to clarify contract performance deposits can be written for review by the Board , and indicated taking action with John Scott will not set any precedents for the future. Director Hamilton moved , and Director Corbett seconded , that the District pay to J & S Line Construction the $ 19 .500 deposit plus the interest actually earned , and continue to retain 10% of the Martis Valley Substation reconductoring contract price until the 35-day period for filing stop notices has expired . All Directors , aye , by voice vote . SO MOVED. PUBLIC INPUT There was no public input . CORRESPONDENCE Response to Grand Jury letter of September 24 , 1985 -2- Director Maass made note of the Manager ' s response to the Grand Jury , which states staff will direct efforts towards their questions upon completion of the budget process in mid-November. The Board will be reviewing the matter also. COMMITTEE REPORTS There were no committee reports . SALE OF 1 .9 ACRE PARCEL - POSSIBLE DIRECTION This matter was put over to the end of the meeting. PROJECT 85-1 — DOWNTOWN WATER LINE REPLACEMENT — CONSIDERATION OF RESOLUTION APPROVING AND DIRECTING THE FILING OF THE NOTICE OF ACCEPTANCE AND COMPLETION Mr . Holzmeister advised that the District is in possession of all the documents necessary to conclude the downtown water line replacement . Engineer Cook is recommending that the District file the notice of completion and enter into a change order which will increase the amount of the contract by $29 ,000 ( for additional paving) . The Manager recommended approving the change order , making payment to Cox in the amount of $3 ,358 . 35 , and retaining 1 0% ( $ 20 ,534 . 50 ) for 35 days after the notice of completion is filed . Director Corbett asked if the telephone company should be asked to participate in the cost of the additional paving , and Mr . Holzmeister said he would approach them with the idea although there is no contractual agreement . Director Corbett moved that the Board adopt Resolution No. 8541 approving and directing the filing of the notice of acceptance and completion for the Commercial Row water main replacement and upgrading of commercial water services - Project 85-1 ; approve the change order in the amount of $29 ,000 ; pay the contractor $3 ,358 .35 at this time ; and retain 10% ($20 ,534 . 50) of the total contract price until the 35-day filing period has expired. The motion was seconded by Dan Cooley . ROLL CALL: Duffy , absent ; all other Directors , aye. SO RESOLVED, CONSIDERATION OF REPORT FROM ROBERT HEYER ASSOCIATES ON THE CUSTOMER OPINION SURVEY Mr. Heyer of Robert Heyer Associates was present in the audience and summarized the findings and recommendations of the Customer Opinion Survey performed for the District . (Copy available in the District office . ) Among his suggestions were establishing a customer outreach program , more employee contact with the public , better use of the media , providing training for dealing with complaints , setting up a crisis information center for problems and emergency situations . He indicated that if a program of this nature is implemented , it would require hiring an additional -3- employee. Director Maass noted that the survey was commissioned as a result of several Directors visiting the Sacramento Municipal Utility District and hearing of their public relations campaign. He stated he thought it would be very helpful to the TDPUD. Director Corbett moved , and Director Hamilton seconded , that the Customer Opinion Survey prepared by Robert Heyer Associates be formally approved and accepted by the District . All Directors , aye , by voice vote . SO MOVED . Mr. Holzmeister advised that staff will now begin pulling information from the report where customer opinions are totally different from the facts and begin communicating with the public . When a program outline has been prepared it will be brought to the Board for consideration. CONSIDERATION OF PRELIMINARY 1986 BUDGET The Manager explained that the budget is a financial plan for the operation and maintenance of the electric and water utilities for 1986 , and a six-year program of capital improvements . There is an accompanying narrative describing the objectives that will be accomplished during the year and the overall purpose of each cost center is described . The financial data in the operations and maintenance portions of the document lists the budget figures for both 1985 and 1986 . The water and electric funds are treated as separate and distinct entities , each with its own set of balancing revenues and expenditures . The purpose of the capital improvements program is to help the Board plan for the proper update of the Districtts physical plant and equipment . The District , Mr . Holzmeister noted , is not proposing that electric rates be increased at this time because three other power supply options come into play in projecting costs into 1986 . There appears to be a possibility that the District will finally receive the two megawatt allocation from the Western Area Power Administrationts Central Valley Project ; the District should begin receiving power from the Stampede hydroelectric project during September of 1986 ; and the District is negotiating with the Northern California Power Agency to purchase wholesale power . If these three sources of power become available to the PUD , it is likely that no rate increase will be necessary . However , until these three factors are resolved , the District is operating at a revenue disadvantage . He proposed easing the District through this period by postponing some expenditures that should not really be postponed except for a short period . If the factors are not resolved in the PUDts favor by May 1 , 1986 , a rate increase will be necessary. It was noted that Sierra Pacific Power Company presently has a request for a retail rate increase before the California PUC. This filing should be finalized by January 1 , 1986 , and will -4- affect their customers in Glenshire , Squaw Valley , etc . by between 4 - 8%. Mr. Holzmeister briefly highlighted areas of increase and decrease in the proposed budget as compared to the 1985 budget , and some discussion ensued. Director Maass asked that actual expenditures from previous years be included in the budget , and Mr . Holzmeister stated that figures from 1984 could be added . It was noted that the public hearing to consider adoption has been set for 7 : 30 P.M. at the Board meeting scheduled for November 4 , 1985 , CONSIDERATION OF RESOLUTION ACCEPTING AN EASEMENT FOR PUBLIC UTILITY PURPOSES FOR AIRPORT SELF—STORAGE , AP319-440-37 Mr. Holzmeister stated that the District and Airport Self-Storage entered into a development agreement which requires the developers to provide an easement for public utility purposes . Director Corbett noted he feels the legal description in the easement is adequate , and thereafter moved that the Board adopt Resolution No . 8542 accepting an easement for public utility purposes for Airport Self-Storage , AP# 19-440-37 ; seconded by Director Hamilton. ROLL CALL : Duffy , absent ; all other Directors , aye. SO RESOLVED, AUTHORIZATION TO RELEASE 10Z RETENTION ON THE TAHOE DONNER SUBSTATION GROUND GRID PROJECT It was noted that the time for subcontractors or suppliers to make a claim for payment with the District on the Tahoe Donner Substation ground grid project expires on October 29 , 1985 . Director Hamilton moved , and Director Corbett seconded , that provided no claims are received , the District refund the 10 % retention to J & S Line Construction on October 29th , All Directors , aye , by voice vote . SO MOVED. CONSIDERATION OF DEVELOPMENT AGREEMENT WITH CORNELL AND BRADLEY District Engineer Tom Buckhouse presented a map showing where the Cornell/Bradley parcel is located , and described how and where utilities would be installed in order to serve them. The developers intend to construct a complete water distribution system for the project for consumptive and fire protection use , and an underground electricl primary extension from the PUD' s overhead facilities on Sitzmark Way . There was much discussion having to do with District material standards for water lines and the type of pipe the developers would be using on their side of the water service . -5- CLOSED SESSION In order that the Water Foreman could research the District ' s Guidelines and Standards respecting material standards prior to a decision being made on the development agreement with Cornell and Bradley , Director Maass recessed the meeting to closed session at 8 : 30 P .M. RETURN TO PUBLIC SESSION The Board returned to public session at 8 : 45 P.M. , and Director Maass advised that the potential sale of the 1 .9 acre parcel was discussed , but no decision was made . Counsel noted that an appeal to the Local Agency Formation Commission of Placer County has been made by Sierra Pacific with respect to the Ponderosa Hills annexation. CONSIDERATION OF DEVELOPMENT AGREE14ENT WITH CORNELL AND BRADLEY Water Foreman Rully noted that he reviewed the District ' s Guidelines and Standards and found that the PUD cannot dictate to a customer the type of material he uses on his side of the service . Mr. Rully stated that a protective device to stop the flow of water if there is a rupture has been included in the plans for Cornell and Bradley , and this should protect the District from problems with the PVC line. Director Hamilton left at this point in the meeting (approximately 9 : 00 P.M. ) Ron Monson , representing the developers , advised that the distribution line is ductile iron up to the hook-up point as is required by the District. Discussed were water pressure , the installation of a fire hydrant for flushing , a drainage ditch , and the possibility of a water meter to check the amount used for flushing. Mr. Holzmeister stated that the development agreement has been drawn up in accordance with District standards , and Counsel has reviewed the document and found no problems . Thereafter , Director Corbett moved , and Director Cooley seconded , that the Board approve the development agreement with Cornell and Bradley . ROLL CALL: Duffy , absent ; all other Directors , aye . SO MOVED, AUTHORIZATION TO TRANSFER FUNDS TO THE WATER DEPARTMENT GENERAL FUND FROM THE FmHA 79--1 LOAN FUND FOR RELATED EXPENSES Mr. Holzmeister reported that during a review of District records for 1984 , it was discovered the Water Department general fund had not been reimbursed for several expenses which related to the FmHA 79-1 loan . He recommended that the Board authorize a transfer of $24 ,354.03 back to the general fund . -6- Director Corbett moved , and Director Cooley seconded , that the Board authorize a transfer from the FmHA 79-1 loan fund in the amount of $24 ,354 .03 to the Water Department general fund. All Directors , aye , by voice vote . SO MOVED, CONSIDERATION OF THE PROPOSED NEVADA COUNTY GROUNDWATER ORDINANCE The Manager expressed concern over several provisions included in the proposed Nevada County groundwater ordinance which will apply only to the Martis Valley aquifer . It will regulate the amount of water that the District takes from its wells ; it will place the PUD under the control of the Planning Department ; it will require the District to get an annual permit to use wells , and will require the filing of reports on a monthly basis and compliance with any other request for information that the Planning Department may make ; it provides that the Director of the Planning Department can issue a stop order and shut down District wells ; it provides that the Director of the Planning Department can enter District premises at any time to conduct investigations ; it provides for civil and criminal penalties for violation of the ordinance ; and provides that the PUD will pay fees to the County for their administration of the ordinance . The District is the only water agency that will fall under jurisdiction of the ordinance . The ordinance is intended to keep out of state water suppliers from taking water from the Martis Valley aquifer. However , it places the District in a potentially harmful relationship with the Nevada County Planning Department . Mr . Holzmeister recommended that a letter be drafted to the Nevada County Board of Supervisors and the Nevada County Water Agency advising them that the District has concerns and want to be heard before the ordinance is adopted. It was mentioned that the Martis Valley aquifer lies within the District ' s sphere of influence , and the possibility of annexing the area was discussed . Ron Monson , present in the audience , suggested the District annex the area as a lead agency and purveyor of water responsible for the health and safety of the public . Cousel Phelps stated that he has spoken with County Counsel ' s office , and it is not their intent to create problems for the District ; they are willing to amend the ordinance . He and Mr . Holzmeister will be meeting with them within the next few days to attempt resolution of the matter. Director Maass directed that Attorney McDonough be contacted and asked for his opinion. CONSIDERATION OF DISPOSAL OF WOOD CUT ON DISTRICT OWNED PROPERTY Manager Holzmeister noted that during the past several weeks , the District ' s tree cutting contractor felled several trees near the Tahoe Donner Substation. Some of the trees were 80 or 90 feet tall and would have destroyed expensive equipment in the -7- substation if they fell during a storm. The trees kept the substation shaded causing a very slow snow melt which hampered access to the substation. There are now approximately 20 cords of wood which should be removed from the property. Mr . Holzmeister suggested drawing names from interested District employees and Board members , and allocating two cords each to ten people . The District would control access to the site and have each person sign a waiver. Risk is minimal because the trees are already on the ground and limbed . Director Maass requested that Board members be ineligible . Director Corbett moved , and Director Cooley seconded , that the Board authorize the Manager to go forward with the project . All Directors , aye . SO MOVED, ADJOURNMENT At 9 : 30 P.M. , Director Corbett moved that the meeting be adjourned to Friday , October 25th at 4 : 00 P . M. to discuss information relating to a proposal on the 1 . 9 acre parcel which should be arriving Federal Express . The motion was seconded by Director Cooley . All Directors , aye , by voice vote . SO MOVED. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By : (� Susan M. Craig , Deputy D strict Clerk -8- 10 ' TRUCKEE DONNER PUBLIC UTILITY DISTRICT 11570 Donner Pass Road — Post Office Bog 309 (916) 587-3896 NOTICE OF ADJOURNMENT OF REGULAR MEETING TO WHOM IT MAY CONCERN: NOTICE IS HEREBY GIVEN that the regular meeting of the Board of Directors of the Truckee Donner Public Utility District was ordered adjourned to the 25th day of October 1985 , at 4 : 00 P.M. , to meet at the TDPUD Board Room. '� This notice is posted in compliance with Section 54955 of the Government Code of the State of California. Dated : October 22 , 1985 Susan M. Craig , Deputy Distr ct Clerk ADJOURNED MEETING OF 10/21/85 October 25, 1985 The adjourned meeting of October 21 , 1985 was reconvened by Vice President Maass to closed session at 4:03 P.M. on Friday, October 25th to discuss the possible sale of the District's 1.9 acre parcel on the corner of Highway 89 and Donner Pass Road. ROLL CALL: Directors Cooley, Corbett and Maass were present. Directors Duffy and Hamilton were absent. CONSULTANTS PRESENT: Counsel John M. Phelps was present. EMPLOYEES PRESENT: Peter L. Holzmeister. RETURN TO PUBLIC SESSION: The meeting was returned to public session at approximately 4:43 P.M. Director Maass advised that, in addition to discussing the sale of the 1.9 acres , the Board talked about the legal ramifications of the draft groundwater ordinance proposed by the County of Nevada. SALE OF THE 1.9 ACRE PARCEL Counsel Phelps noted that the offer from PDQ Incorporated of Nevada to purchase the District's land on the corner of Highway 89 and Donner Pass Road is in order. Director Corbett moved, and Director Cooley seconded , that the Board direct Counsel to draft an ordinance for consideration by the Board at the next regularly scheduled meeting, which ordinance shall provide for the District to accept an offer from PDQ to purchase the District's 1.9 acres of land, and to inform PDQ that their offer appears to meet the District's requirements and will be favorably considered at the scheduled meeting unless significant public opposition is received. All Directors, aye. SO MOVED. Director Maass directed that a public hearing be scheduled for 7:30 P.M. (or as soon thereafter as possible) on November 4th to discuss the proposed ordinance , and that an appropriate advertisement be placed in the newspaper. DEVELOPMENT AGREEMENT WITH THE COUNTY OF NEVADA - TRUCKEE INTERHODAL TRANSPORTATION TERMINAL Counsel Phelps advised that the County of Nevada has suggested a number of changes to the District's proposed development agreement concerning the Truckee Intermodal Transportation Terminal, and is requesting action this date to avoid extra construction costs. -1- After some discussion of the District's development agreement procedure, Director Maass asked why the County should be treated any differently than anyone else; the Planning Commission, Board of Supervisors , etc. wouldn't tolerate this from a developer or the PUD. . . *There seems to be a double standard. He indicated his anger, and noted he feels they should wait until the matter is scheduled as an appropriate agenda item at the next regular meeting. District Engineer Buckhouse noted that the contractor, not the County, is the one that will suffer if construction is delayed until the agreement is signed. Counsel stated he is confident that the County will comply with the provisions of the amended agreement, and indicated the District would be providing inspection of the work. Manager Holzmeister suggested that construction go forward on the condition that the District does not install conduit or hook up the project until finalization of the agreement. There was some discussion of maintaining good relations with the County, especially since the PUD will be going forward with its new complex soon. SIERRA PINES DEVELOPMENT It was noted that the Board approved a development agreement with Ludvik Limberg over a year ago for the Sierra Pines project. Mr. Limberg is requesting several amendments to the agreement. Director Maass directed that the matter be scheduled for consideration at the next regular meeting. CONSIDERATION OF RESOLUTION ACCEPTING AN EASEMENT FOR PUBLIC UTILITY PURPOSES (ELECTRIC) FOR AIRPORT SELF-STORAGE, AP119-440-37 Consideration of the resolution accepting an electrical easement for Airport Self-Storage was tabled to the November 4th meeting. ADJOURNMENT There being no further business before the Board, Director Corbett moved that the meeting be adjourned; seconded by Director Cooley, SO MOVED unanimously. TRUCKEE DONNER PUBLIC UTILITY DISTRICT ,�--. Susan M. Craig, Deputy Dist ct Clerk -2-