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HomeMy WebLinkAbout1988-05-02 Min - Board REGULAR MEETING May 2. 1988 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Corbett at 7:07 P.M. in the TDPUD Board room. ROLL CALL: Directors Maass, White and Corbett were present. Director Sutton was not able to attend; Director Aguera was expected momentarily. EMPLOYEES PRESENT: Debi Black, Tom Buckhouse, Paul Colburn, Peter TIolzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps. OTHERS PRESENT: Aaron Schwin, Annette Barreza, Brenda Sage, Jan Bess, LeAnn Schroeder, Eric Wealley, Don Lorenzetti, Tanna Braunap, Steve Dolquist, Wade Posten, Randv Merger, Richard Tucker, Brian Dabal, C. R. VanLandingham and Kimberly Waller. APPROVAL OF MINUTES Director Maass moved, and Director White seconded, that the minutes of February 16 , March 7 , 21 and 28 , 1988 be, approved as corrected. All Directors , aye , by voice vote. SO MOVED. (Director Aguera arrived at this point in the meeting, 7:08 P.M.) Regarding the draft minutes of April 4, 1988, Director White asked that "Truckee Instant Propane" on page 2 be changed to "Truckee Tahoe Propane;" and that note be made on page 4 under discussion of the Hirschdale water project that the proposed change order in the amount of $18 ,000 does not include any increase in labor costs. Thereafter, Director White moved that the minutes of April 4 be placed in final form as corrected; seconded by Director Maass. All Directors, aye , by voice vote. SO MOVED. Director White asked that the discussion on page 3 of the April 18, 1988 minutes relating to Directors' liability insurance be clarified to say, 11$5,000,000 aggregate per occurrence." Director Maass moved, and Director Aguera seconded, that the Secretary be directed to prepare the minutes of April 18 in final form as corrected. All Directors, aye , by voice vote. SO MOVED. STATEMENT OF GENERAL FUND AND BILLS FOR APPROVAL. There was brief discussion of some of the bills presented for consideration. Director White suggested adding the telephone bill to the pre-authorized payment list (the monthly service charge as well as telemetry charges). Director Maass moved that the bills be approved for payment , and that the -1- Pacific Telephone bills be added to the pre-authorized payment list; seconded by Director White. All Di-rectors, aye , by voice vote. SO MOVED. MANAGER'S REPORT TTSA Connection Charges Mr. Holzmeister reported that recently enacted legislation solving the problem caused by the San Marcos decision has both good and bad points. Tahoe Truckee Sanitation Agency did not bill the District previously because they felt bound by the decision, but the new legislation has cleared the way for TTSA and thev have billed the PUD in the amount of $30,000 for plumbing fixture units in the new complex. The TTSA bill will be placed on the list for consideration at the next regular meeting. Groundwater Ordinance The District's lawsuit with Nevada County reaches an important point in May, Mr. Holzmeister noted. On May 23 a hearing will be held at Sutter County Superior Court in Yuba City on the PUD's motion asking that the court find. that the state has pre-empted the groundwater field. Special Counsel Bruce McDonough has filed a lengthy document with the court in support of the motion , and Mr. Holzmeister will make it available to interested Directors. Equal Payment Plan The equal payment plan is in the process of implementation. To date , the Manager advised, 408 customers have signed up. Many positive comments from community members have been received as a result of this new service. PUBLIC INPUT There was no public input. CORRESPONDENCE Mr. Holzmeister mentioned the April 25, 1488 letter from Tahoe Truckee Sanitation Agency billing the District $30,000 in connection charges for the new complex which he brought up during the Manager's Report. COMMITTEE REPORTS Nevada County Water Advisory Council Director Corbett noted that he would give a verbal report on his participation on the Nevada County Water Advisory Council during Unfinished Business No. 2.. Finance Connittee Director White provided the Directors with copies of the April 155 1988 -2- committee meeting. DISCUSSION OF TRUCKEE GENERAL PLAN UPDATE; POSSIBLE DIRECTION Mr. Holzmeister suggested that a District representative appear at the May Planning Commission meeting to offer comments on the Truckee General Plan Update. His proposed answers to the questions posed in the County's memorandum of April 1 , 1988 are as follows: a) Regarding the District's goals, objectives and policies, provide a copy of the PUD's goals and objectives statement and the policies having to do with line extensions. h) Supply a District map locating existing and proposed facilities. c) Provide a fee schedule for new additions to the District. d) Advise that the District does not anticipate any increase in development fees at this time and note that ten years is too far out to plan on fee increases. e) Regarding the District's current capability or capacity to serve new pr_oiects without expansion, advise the County that almost all new projects require some sort of expansion of facilities and that the cost of the expansion is borne by the developer. The TDPUD is expandable. f) Concerning factors that might limit the PUD's ability to serve new projects , advise the County of the well capacity and substation capacity followed by the. distribution system. In each case the limiting factor can be overcome by construction of new facilities. Discussion about the Hopkins Estate ensued at this point. Director Maass noted that subdivision of the 1 ,600 acres into small lots has been proposed. It was his opinion that the District should prepare basic plans on how to serve the parcels (easements, tank sites, etc.) prior to the subdivision, and that this should be mentioned in the letter to the Planning Commission. The Board agreed that it should be included. g) With respect to constraints that would limit expansion of the PUD, note the ability to expand the boundaries and the existence of an adopted sphere of influence describing the logical ultimate size of. the District boundaries. -3- Mr. Holzmeister also suggested that the District describe the effects that peak loading has on the economics of an electric utility; in operating an electric utility, it is beneficial to have a balance between residential and non-residential customers. After some discussion, Director Maass moved that the Manager be authorized to prepare an appropriate letter to the Planning Commission which is to include the suggestions above; further, Mr. Holzmeister was appointed to appear at the Planning Commission meeting on behalf of the District; seconded by Director White. All Directors , aye , by voice vote. SO MOVED. DISCUSSION OF PARTICIPATION IN NEVADA COUNTY STATER ADVISORY COUNCIL - POSSIBLE DIRECTION Director Corbett noted that he feels remiss in not reporting to the Board on the progress of the Nevada County Water Advisory Council. He said that the last few years has been spent gathering information.. Last Friday the Council drafted a letter concerning groundwater well data and will ask the Board of Supervisors to allocate funding to the Department of Environmental Health for the purpose of placing this data in the computer for planning purposes. Director Maass said that the District is currently involved in a lawsuit against the County concerning the groundwater ordinance, and he feels there may be a conflict with participation on this Advisory Council by a PUD Board member. Director Corbett advised that , at the next Advisory Council meeting , policies and proposed changes to the County ordinance will be considered. Director Corbett mentioned the May 1 , 1986 letter from the Department of Water Resources states they hope to refine the projections in the Truckee Basin and also wants to determine how much of the Interstate Compact water is already subject to beneficial use under existing water rights. Discussion ensued. Manager Holzmeister suggested that the District's representative to the Advisory Council be instructed to ask the Council to adopt a motion stating that the Advisory Council believes that the Nevada County groundwater ordinance is improper and should be repealed. If the Advisory Council refuses to adopt such a position, the District could withdraw its participation on the Council in order to avoid compromising its position on the lawsuit. Director Maass moved, and Director Aguera seconded, that Director Corbett represent the PUD at the next Water Advisory Council meeting and that he be directed to propose a motion at that time which would authorize the Advisory Council to advise the Nevada County Board of Supervisors to repeal the groundwater ordinance as it pertains to the District. ROLL CALL: Sutton, absent; all other Directors , aye. SO MOVED. PROSSER HEIGHTS WELL - STATUS REPORT AND RESULTS OF PUMP TEST -4- le� Consulting Engineer Sauers has reported , through his memorandum of April 26 , 1988, that step test pumping of the Prosser Heights Well was begun on April 20; the results allowed the determination that a continuous 24-hour test should be run at 400 gallons per minutes. This test was run on April 21 and 22; the results were satisfactory and corroborated the decision to upgrade the well pumping equipment to 400 gallons per minute. Mr. Rolzmeister said equipment delivery is expected during the week of May 29 with installation during the week of May 9. He noted that the power distribution system is not strong enough to supply across-the-line motor starts witbout possible negative affects in the system. Mr. Sauers has proposed a soft-start motor starter which will be an extra cost item; District Engineer Buckhouse explained how the motor starter works and said an appropriate change order will be presented for consideration. CONSIDERATION OF DENIMS DODDS' PETITION FOR ABANDONMENT OF UNUSED RESERVE EASEI+SENTS Engineering Technician Black reviewed the petition of Siegfried and Sina Elychova to abandon unused reserve easements located on AP#'s 16-390-28 and 16-370-08 in Prosser Lakeview Estates. Tt was staf f_ 's recommendation to release the District's interest in the rear lot line five foot public utility easement of Lot 131 , and the southwesterly side lot line five foot public utility easement of Lot 304. Director Maass moved, and Director White seconded, that the Board approve the Plychova's petition for abandonment of unused reserve easements as requested. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF DRAFT ORDINANCE AMENDING THE DISTRICT'S CONFLICT OF INTEREST CODE ORDINANCE; DIRECTION TO SCHEDULE PUBLIC HEARING Counsel Phelps' memorandum of April 28, 1988 reminded the Board that it adopted a new Conflict of Interest Code last ,year. After it was filed with the County it was learned that, since the District is a bi-County agency, its Code must be submitted to and approved by the Fair Political Practices Commission. The PPPC has requested re adoption of the code according to their procedures. Counsel explained the necessary steps , procedures and suggested dates. a) Prepare the new proposed Code (to include minor changes suggested by the FPPC and new positions created by the PUD) -- May 16. b) Prepare a notice of intention to adopt Conflict of Interest Code containing certain required information; file the notice with the PPPC and deliver a copy to all affected employees before the hearing - May 31. c) Conduct a public hearing concerning the Code - August 1. d) Adopt the new proposed Code - August 15. -5- e) Forward the proposed Code to the FPPC with additional required information - August 16. Director Maass moved that the Board authorize the steps and time line recommended by Counsel Phelps; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. POSSIBLE AUTHORI ZAT ION TO S1KND EMPLOYEE TO A COURSE ON ELECTRONIC RECLOSURE MAINTENANCE The benefits of District employees becoming proficient in repair and adjustment of the electronic reclosures and controls was discussed at the last Board meeting. Director Maass moved, and Director Aguera seconded, that the Board authorize attendance by one of the Electric Crew at the June 6th class of the McGraw-Edison Switchgear and Control Maintenance Course in Wisconsin. All Directors, aye , by voice vote. SO MOVED. It was noted that Wayne Cummings would be attending the class. CONSIDERATION OF DRAFT POLICY REGARDING HIRING OF DISTRICT EMPLOYEES Manager Holzmeister prepared a draft policy setting forth standards for recruiting and hiring non-managerial employees. a) The policy would provide for first seeking to fill positions through the provisions of the Memorandum of Understanding, then advertising in the Sierra Sun. b) The General Manager would be responsible for maintaining a job specification which is job performance related and an employment application form which meets the customary standards of personnel practices. c) Whenever practicable, candidates for employment would be administered personnel tests which might include both oral and written tests designed to measure aptitude, interest, knowledge and personality traits. The tests would conform to the standards of the American Psychological Association. d) When competitive tests are used in the screening process the candidates receiving the three highest scores on a combined basis would be interviewed by the immediate supervisor and the General Manager. The supervisor will recommend a successful candidate to the General Manager; the final decision regarding the filling of the vacancy would rest with the General Manager. e) A pre-employment physical paid for by the District shall -• be required of all new hires. f) The General Manager shall cause to be maintained for each -6- employee a personnel folder the contents of which meet the customary standards of good personnel practices. Director Maass moved, and Director White seconded, that the Board adopt Resolution No. 8810 setting forth a procedure of open competitive employee recruitment. ROLL CALL: Aguera, aye; Maass, aye; White , aye; Sutton, absent; Corbett, aye. SO RESOLVED. Director White suggested a policy for hiring managerial employees also be prepared. CONSIDERATION OF ACCOUNTING ISSUES RAISED BY TOUCHE ROSS AND COMPANY RESPECTING COMPLETION OF THS 1987 AUDIT Finance Supervisor Colburn explained that, in order for Touche Ross to finalize their examination of the District's financial statements , a clarification of the policy regarding facilities and connection fees is necessary. Historically, the TDPUD has presented its financial statements showing a classification on the balance sheet entitled "Customer Advances," which in accounting terms is an obligation by the District. This includes facilities fees received from customers; a portion of connection fees allocated to future water Metering; advances by customers for construction; the unexpended portion of the Dart Industries' settlement; and accumulated interest on these accounts. Touche Ross has stated they believe the District is in compliance with existing accounting principles and regulations related to advances by customers for construction. In accounting; terms , Mr. Colburn noted , recording of facilities fees received from customers and a portion of the connection fees allocated to future water metering as "Customer Advances ," implies that either a contractual legal obligation of the District exists or that some future event must occur in which the District has an obligation to perform. The District's water policy statement indicates that facilities fees are charged to applicants to cover the pro rata share of the cost of the existing supply facilities and any expansions or additions thereof which are required to serve the applicant. The connection fee includes the costs of material and labor to provide an appropriate water meter, and contribution to a restricted fund for future water metering within the District. Touche Ross notes that the District generally follows the Uniform System of Accounts for the electric and water systems, which requires that contributions in the form of money or its equivalent toward the construction of plant shall be credited to accounts charged with the cost of such construction. The District does not apply any portion of the facilities fees against utility plant as a contribution in aid of construction. Instead , they have been accumulating as an obligation of the District and would eventually be -7- ., applied against the cost of future construction projects. The portion of connection fees allocation to future water metering has also been accumulating in the same manner. Touche Ross has stated they believe this accounting treatment is appropriate if there is a contractual obligation of the District to either refund the fees to the applicants or to use the facilities fees received to expand the existing supply systems. Likewise, recognizing the portion of connection fees applicable to future water metering as an obligation would only be appropriate if there is a contractual obligation by the District to install meters or to refund the connection fees. If no contractual obligation for .future additions or water metering exists, or the fees are not refundable to the applicants, the facilities and connection fees should be reflected as current income; the monies collected from charging these fees should still be a restricted fund pursuant to Board resolutions. Touche Ross is requesting clarification as to the contractual obligation of the District to construct future supply systems, install water meters, or to refund fees to the applicants. Mr. Colburn suggested the Board agree there is no liability on the part of the District when there is no obligation to perform. Director Maass said he thinks the District has some obligations to the residents of Tahoe Donner, Director White recommended the Board state that where there are no contractual obligations, funds should be carried in equity; if there are obligations , the funds should be carried in theliability section. After some discussion, Director White moved that the Board agree that any items carried as customer advances on the liability side of the balance sheet be carried in equity -if no contractual obligations exist. Director A.guera seconded the motion. ROLL CALL: Aguera, aye; Maass , no; White, aye; Sutton, absent; Corbett, aye. SO MOVED. Mr. Colburn noted the Board should receive the final financial statements by May 13, and suggested the audit workshop be rescheduled for 7:00 P.M. on Monday, May 23; the Board agreed. Director White asked that the Board receive copies of the Dart agreements prior to that time. HIRSCHDALE WATER SYST19M REHABILITATION - CONSIDERATION OF PERIODIC ESTIMATE NO. 4 FOR PARTIAL, PAYMENT Manager Holzmeister reported that Joe Suter made very fast progress last week on the Hirschdale water system rehabilitation project. He expects that by the end of this week the pipeline will be in place. The total cost of work performed, materials on hand , is $167 ,266.76 ; previous -payments amount to $869528.94; the balance due this payment is $64,011.15. Mr. Holzmeister advised that Consulting Engineer Cook is recommending approval of Periodic Estimate No. 4 in the amount of $64 9011.15, Director Maass moired that the Board. approve Periodic Estimate No. 4 in the amount of $645011.15 on the Hirschdale Water System Rehabilitation project; seconded by Director White, ROLL CALL: Sutton, absent ; all other -8- Directors, aye. SO MOVED. ADJOURNMENT There being no further business before the Board, Director Maass moved that the meeting be adjourned; seconded by Director Aguera. All Directors , aye, by voice vote. SO MOVED at 8:09 P.M. TRU NPER PUBLIC UTILITY DISTRICT" Jo L. Corbett, P sident P ared by:z Susan N. Craig, Deputy District Clerk smc5d.13 -9-