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HomeMy WebLinkAbout1985-12-16 Min - Board REGULAR MEETING December 16 , 1985 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Maass at 7:01 P.M. in the TDPUD Board Room. ROLL CALL: Directors Cooley, Corbett , Hamilton, Sutton and Maass were present. CONSULTANTS PRESENT: Rick Blumenfeld and Keith Fukui of Arthur Andersen and Company, and Counsel John M. Phelps. EMPLOYEES PRESENT: Ron Reynolds, Mary Chapman, Peter Holzmeister and Susan Craig. OTHERS PRESENT: Among those present were C. R. VanLandingham, Mark Cruz, Rondi Thorwaldsen, John A. Boren, Jr. , and David Toussaint. APPROVAL OF MINUTES With respect to discussion of the October 21st meeting in the minutes of November 18, 1985 , Director Corbett asked that Page 1 of the final minutes show his concern was over the meaning of "will" as being certain when "would" meant that it would be done if necessary (in relation to a possible rate increase in May). Counsel Phelps asked that Page 3 of the November 18th minutes having to do with correspondence from Richard Fambrini be changed from, "Counsel stated that the security light contract provides that either party may cancel the contract upon 30 days written notice ," to , "Counsel stated that the security light contract provides that either party may cancel the contract after four years, and upon 30 days written notice." Director Sutton advised she would abstain from voting on approval of the November 18, 1985 minutes, as she was not a Board member at the time. Director Corbett moved, and Director Hamilton seconded, that the minutes of November 189 1985 be approved as corrected. SO MOVED by majority aye vote. Director Corbett inquired regarding direction given at the December 2nd meeting to investigate the survey and design work being paid by check numbers 9850 and 9851 and provide a description of the work to the Board. Manager Holzmeister noted that the charges were for site evaluation for the new complex. Director Corbett asked that discussion of the Sassarini request for land purchase at the December 2nd meeting be changed from, "There was some discussion regarding a similar situation across the street from Mr. Sassarini ," to, ". ..a similar situation next door and to the east of..." Director Corbett moved, and Director Hamilton seconded, that the Secretary be directed to prepare the minutes of December 2 , 1985 in final form as corrected. All Directors, aye, by voice vote. SO MOVED. -1- BILLS FOR APPROVAL Director Corbett noted that- the cost of surveying the 1.9 acres on the corner of Highway 89 and Donner Pass Road was underestimated. The Manager advised that the parcel is not shaped as we thought it was - there is more land and it was difficult to set. The amount being charged the District by Vail is for the initial topographical survey; there will be some further expense. Director Sutton asked if an engineering firm was working on the parcel the Saturday before the Board took action on the sale of the 1.9 acre parcel and authorized a survey. Mr. Holzmeister was not aware of any activity on the parcel. Director Sutton inquired as to whether the District is reimbursed for charges by Porter, Simon, Graham and Phelps relating to annexation. Mr. Holzmeister advised that in the case of Ponderosa Hills , only a portion of the annexation costs would be charged against the requesting parties. This particular annexation , the Manager noted , went into areas where the District got a lot of benefit by going through the process. Annexing larger portions of the sphere of influence were discussed. Director Sutton asked if this is contrary to District policy. Relating to the bill in the amount of $6,000 from Arthur Andersen and Company, Director Sutton asked if the letter of recommendations regarding the improvement of accounting procedures was the total result of Andersen's efforts. Mr. Holzmeister advised that the amount of $6,000 for the review and recommendations was previously authorized by the Board , and Mr. Blumenfeld briefly summarized the work that went into preparing the recommendations. Director Sutton noted she was satisfied with Mr. Blumenfeld's explanation, but concerned about the $6,000 cost for a report in letter form. Director Hamilton moved, and Director Corbett seconded, that the bills presented for consideration be approved for payment. All Directors, aye. SO MOVED, MANAGER'S REPORT Budget report Mr. Holzmeister advised that copies of the Budget Report through November 1985 were provided to the Directors this evening, since it was not available when the packets were assembled. He gave a brief overview, and noted the budget looks to be in good condition; he indicated he couldn't anticipate anything coming up in December that would alter this. Degree days Bruce Grow, Foreman of Technical Services, has reported the coldest winter since 1979. This is being reflected, Mr. Holzmeister noted, in higher utility bills. December is anticipated to be the coldest month on record. PUBLIC INPUT -2- 40"'` Cross-country ski school at Hilltop Rondi Thorwaldsen, present in the audience , stated she started a new cross-country ski school at Hilltop , provided the Directors with a trail map , and asked the District' s approval for setting trails across PUD property. The trail will be machine groomed; the area leading to the Sassarini home will be blocked. Ms. Thorwaldsen is giving a discount to children who live in the area. The Manager noted that Water Foreman Dave Rully skied the proposed trail. Mr. Holzmeister stated it crosses PUD land in only one place, and there are no hazards present. The Board indicated its willingness to consider an agreement with Ms. Thorwaldsen at the next regular meeting. There was some discussion as to whether the District actually owns the land across which the trails run, and President Maass directed the Manager to determine all the facts and return to the Board with a recommendation. CORRESPONDENCE Nevada County Water Agency Director Corbett made note of a letter he received from the Nevada County Water Agency advising him of an Advisory Council meeting to be held on January 16 , 1986 at 10:00 A.M. , which he will be attending. COMMITTEE APPOINTMENTS The Chairman said appointments would be made to ad hoc committees to study power supply and cathodic protection. Director Sutton stated she wants a clear understanding that all committee meetings of a public agency are open to the public and must be properly noticed. Any citizen may request written agenda notice and attend such meetings. Counsel Phelps was asked to provide a brief summary of the Brown Act provisions concerning attendance by the public at committee meetings. President Maass appointed Directors Corbett and Hamilton to the committee to study power supply, and Directors Cooley and Sutton to the cathodic protection committee. CONSIDERATION OF JOHN BOREN'S CLAIM AGAINST RICHARD COX/HARDROCK CONSTRUCTION - PROJECT 85-1 Mr. Holzmeister advised that John A. Boren, Jr. (paving subcontractor for Richard Cox on Project 85-1 ) filed a stop notice in the amount of $15.449,82 with the District on December 12, 1985, Counsel Phelps stated that a stop notice is similar to a lien; under state law, if the notice is filed within the proper time frame, the District is required to withhold the amount of the claim plus estimated litigation costs from final payment to the contractor until the matter is resolved between the contractor and subcontractor. The Manager said he talked with Richard Cox; Mr. Cox admits he owes Boren money, but is contesting the amount. The Chairman directed that Mr. Holzmeister arrange a settlement meeting between Mssrs. Cox, Cook and Boren and, if an agreement is reached, place consideration of releasing -3- the retained funds to Mr. Cox on the next regular meeting agenda. Director Hamilton moved, and Director Corbett seconded, that the funds retained by the District on the downtown Truckee water line replacement project continue to be held until the Boren claim has been settled. All Directors, aye, by voice vote. SO MOVED, ARTHUR ANDERSEN & COMPANY PRESENTATION - CONSIDERATION OF RECOMMENDATIONS RE IMPROVING ACCOi1NTING PROCEDURES - POSSIBLE DIRECTION Mr. Fukui briefly summarized Arthur Andersen's findings based on a review performed during and after the audit, and their recommendations to improve and streamline the District's accounting system. There was some discussion of the Rural Electrification Administration's required accounting procedures and compliance with the California guidelines for good accounting procedures. Mr. Holzmeister stated that staff would like to implement the entire report. He has written to the REA asking for review and approval of Arthur Andersen's recommendations. Director Sutton noted that a certain method of inventorying has been implemented by staff without the Board's direction. After some discussion, Director Hamilton suggested reviewing each recommendation in depth, separately (one at each Board meeting); the Board was in agreement. CONSIDERATION OF CONTRACTING WITH GLENN W. BEDELL FOR MICROBIOLOGICAL CONSULTING Mr. Holzmeister mentioned that it would be a help if the District could consult with an expert regarding various water related microbiological problems. There is presently a problem at the Northside Well on which staff would like the assistance of Dr. Glenn W. Bedell. After some discussion , Director Hamilton moved , and Director Corbett seconded, that Dr. Bedell be authorized to provide assistance in solving the problem at the Northside Well. All Directors, aye , by voice vote. SO MOVED, AIRPORT WELL AND PUMP STATION UPGRADE - CONSIDERATION OF KEITH SAUERS* PROPOSAL FOR ENGINEERING SERVICES - POSSIBLE DIRECTION Manager Holzmeister expressed concern over the District 's ability to deliver water to Tahoe Donner in sufficient quantity to meet next summer's expected demands , and referred to Mr. Sauers proposal to enlarge the Airport Well pumping capacity from 1 ,000 gallons per minute to 2 ,500 gallons per minute , and increasing the capacity of the Airport Booster Pump Station to deliver 3 ,000 to the Northside Tank. Keith Sauers Engineering would charge 15% of the estimated cost of the improvements for the engineering; restricted funds are available for the upsizing. Director Hamilton moved, and Director Corbett seconded, that Keith Sauers -4- Engineering be authorized to go forward with the engineering of the Airport Well and Pump Station upsize. All Directors, aye, by voice vote. SO MOVED. RATE CONSULTING - CONSIDERATION OF JOHN SPRINGER'S PROPOSAL AND POSSIBLE DIRECTION The Manager stated that when the wholesale rate increase for Sierra Pacific was approved, certain fuel and purchase power costs which had been billed separately become rolled into SPPCO's base rate. Under the PUD's billing procedure, identified fuel and purchase power costs to the customers were passed on to the customers. With the charges no longer being fully identified separately on the wholesale bill, it is not possible to pass them on to the customers. The result is that District customers will realize a rate reduction. To solve the problem, Mr. Holzmeister asked authority from the Board to engage the services of John Springer (formerly of R. W. Beck and Associates) to back out the amount of fuel and purchase power costs that were rolled into the base of the wholesale rate. That amount could then be billed as has been done in the past. After consideration by the Board, Director Corbett moved, and Director Hamilton seconded, that Mr. Springer be authorized to go forward with this analysis for implementation by the District at an approximate cost of $450 plus out of pocket expenses. All Directors, aye, by voice vote. SO MOVED, Director Sutton moved that the Manager proceed to invite proposals for a full rate study from several different consultants; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED, RESOLUTION ISSUING A CALL FOR ELECTRICAL DISTRIBUTION EQUIPMENT AND MATERIAL (TRANSFORMERS AND WIRE) After consideration, Director Corbett moved, and Director Hamilton seconded, that the Board adopt Resolution No. 8546 approving specifications and calling for bids on electrical distribution equipment, and that the date and time established for the bid opening be 2:00 P.M. on Wednesday, January 15th. ROLL CALL: All Directors , aye. SO RESOLVED. POSSIBLE DIRECTION RE SEMINAR AND CONFERENCE ATTENDANCE - NRECA AND CMUA Mr. Holzmeister briefly described the NRECA seminar entitled, "Being a Board Member: The Total Job," and the 54th CMUA annual conference. He noted funds have been budgeted, and asked interested Directors to contact him. REVIEW OF RESPONSE TO GRAND JURY REQUEST FOR INFORMATION — POSSIBLE DIRECTION The draft response to the Nevada County Grand Jury request for additional information was reviewed by the Board. Director Sutton indicated she would abstain from voting on its approval since she was not on the Board at the time of the investigation. After some discussion, Director Cooley moved -5- that the Board approve the draft and mail the response to the Grand Jury; seconded by Director Hamilton. ROLL CALL: Sutton, abstain; all other Directors, aye. SO MOVED. RESOLUTION INCREASING HANAGEMENT SALARY - POSSIBLE ADOPTION Manager Holzmeister requested that the Board adjourn to closed session in order to evaluate the four management employees. CLOSED SESSION The Chairman adjourned the meeting to closed session at 9:39 P.M. to evaluate the non-bargaining unit employees. RETURN TO PUBLIC SESSION The meeting was returned to open session at 9:57 P.M. Mr. Holzmeister advised that the proposed increase of 4% during the first six months of 1986 , and an additional 3% increase during the second six months of 1986 is the same increase bargaining unit employees will receive in accordance with the three-year contract covering the period from January 1 , 1985 through December 31 , 1987. The proposed longevity compensation is currently being received by bargaining unit employees. Also suggested was that the non-bargaining unit employees be offered a choice between the District's standard defined benefit plan and a contribution equal to 6% of the employee's salary to the ICMA deferred compensation plan. Director Sutton stated she feels all four non-bargaining unit employees are good employees, and noted that they earn considerably more than many County department heads; she suggested a salary schedule be determined and implemented in the future. Director Hamilton moved, and Director Corbett seconded, that the Board adopt Resolution No. 8547 effecting a compensation adjustment for non-bargaining unit employees. ROLL CALL: All Directors , aye. SO RESOLVED, ADJOURNMENT There being no further business before the Board, Director Hamilton moved that the meeting be adjourned at 10:07 P.M. The motion was seconded by Director Corbett and passed unanimously. TRUCKEE DONNER PUBLIC UTILITY DISTRICT B J s A. Maass, President Prepared : Susan M. Craig, Deputy Dis ct Clerk -6-