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HomeMy WebLinkAbout1988-01-18 Min - Board REGULAR MEETING January 18, 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: Tom Buckhouse , Debi Black, Paul Colburn, Peter Holzmeister and Susan Macdonald were present. CONSULTANTS PRESENT: Consulting Engineer Dan Cook and Counsel John Phelps. OTHERS PRESENT: Among those present in the audience were Michael Monroe , Margrith Kuttel, W. R. Austin, Don Hubbard ,, Dennis Pugh, C. R. VanLandingham, Bill Roberts , Joe Suter and Tony Rivara. APPROVAL OF MINUTES After review, Director Sutton moved that the Secretary be directed to prepare the minutes of December 21 , 1987 in final form; seconded by Director White. All Directors, aye, by voice vote. SO MOVED. Directors White and Sutton suggested verbal corrections to the minutes of January 4 , 1988. Thereafter, Director Maass moved that the Secretary be directed to prepare the minutes in final form as corrected; seconded by Director Aguera. All Directors, aye, by voice vote. SO MOVED. Director Sutton asked that the Board be provided with a copy of the corrections trade to the January 4 minutes as soon as they have been completed. STATEMENT OF GENERAL FUND AND BILLS FOR APPROVAL Finance Supervisor Colburn briefly explained the new computer form on which the pre-authorized disbursements and payments under $1 ,000 appear, and answered several questions posed by the Directors. Director Sutton stated she would like an accounting of payroll by name so she may review the overtime, regular time and total paid to each employee. There was no discussion or any questions relating to the bills presented for consideration, and Director Aguera moved that they be approved for payment. The motion was seconded by Director Maass. ROLL CALL: all Directors , a.ye. SO MOVED. MANAGER'S REPORT - POSSIBLE DIRECTION -1- Pressure fluctuations in Tahoe Donner Keith Sauers investigated the variation in water pressure experienced by some customers at the lowest pressure zone in Tahoe Donner, Mr. Holzmeister noted. Mr. Sauers report was included with the meeting packet. Open house The Manager advised that 28 people attended the open house on Saturday, January 16 , even though it was snowing heavily. He said the customers seemed to enjoy the tour and the employees' presentations. Director Corbett informed the Board that he heard good reports from people who attended. Mr. Holzmeister said he thought it might be a good idea to hold another open house during nice weather. PUBLIC INPUT There was no ;public input. CORRESPONDENCE Correspondence dated 1/13/88 to County concerning proposed hazardous Waste site in vicinity of Sanders Well Mr. Holzmeister advised that he hasn't had a response to his letter expressing concern over reports that the County is considering locating a hazardous waste site in the vicinity of the Sanders Well Con ShaNeva property). He has asked for a copy of the draft Hazardous Waste Management Plan when it is available for review. COMMITTEE REPORTS Director White noted that the Audit Committee reviewed the audit proposals and interviewed representatives from each firm. Their recommendation will be considered under_ New Business, Item No. 1. HIRSCHDALE WATER SYSTEM REHABILITATION - DISCUSSION AND POSSIBLE ACTION Consulting Engineer Cook reported that the Hirschdale test well was completed December 19. The Field of the test hole exceeded the capacity of the driller's equipment and is estimated to be greater than 150 gallons per minute - probably in the range of 200 gallons per minute. Mr. Cook explained, in great detail, Schedule A and related costs of the Hirschdale rehabilitation as bid and as completed. He also reviewed Schedules B and C. Incidental expenses totaling $61 ,523 were explained, and Mr. Cook answered questions posed by the Board and residents of the ^ community of Hirschdale. The original contract amount was $296,675; the -2- adjusted amount (which includes drilling of the alternate well site and road work) figured for completion was $379 ,655; total project cost (including changes requested by the State Department of Health Services) will be $441 ,178. Mr. Cook advised that Jess Morehouse of the State Health Service has requested a change in the contract with Joe Suter that would require completion of Schedule B (the completion of the production well prior to the start of the tank and distribution system installation). The original contract allowed both Schedules B and C to proceed concurrently. This modification insures that the well is capable of serving the community before any of the distribution system is installed or the cost incurred. Also proposed was a change in Schedule C - a commitment by the District to potential restocking of materials cost. The change would protect the community from additional escalation of material and labor costs, while at the same time providing an acceptable degree of protection to the construction contractor. The notice to proceed on Schedule C would be issued at the conclusion of the step drawdown and continuous pumping test. Joe Suter's Progress Pay Estimate No. 2 was reviewed. After discussion, Director Maass moved that Progress Pay Estimate No. 2 in the amount of $19 ,977.77 for the Hirschdale water system rehabilitation be approved; seconded by Director Aguera. ROLL, CALL: all Directors, aye. SO MOVED. More discussion ensued. Thereafter, Director Maass moved that the Board authorize the notice to proceed on Schedule B of the Hirschdale project (completion of the well up to the point of testing); at the same time, Consulting Engineer Cook is to notify the State of the $25,000 additional cost involved in complying with requirements specified by Jess Morehouse and confirm that they are necessary. The Board is to be copied with related correspondence. Director Sutton seconded the motion. ROLL CALL: all Directors, aye. SO MONIED. NEW DISTRICT COMPLEX -- AUTHORIZATION TO RELEASE RETENTION TO VALUE BUILDERS Manager Holzmeister recited the _following costs relating to construction of the new complex to the Board: Original contract $ 234065929 Change orders 98,245 Adi usted contract 2,505,174 Completed to date 2 ,503,089 Retention 2491785 He suggested that the District continue to retain $2,085 for landscaping which was not completed, and $8,515 as requested by the Labor Commission due to non-compliance by one of the subcontractors. It was Mr. Holzmeister's recommendation that the Board release $239,185 to Value Builders at this time. -3- Director Maass moved, and Director White seconded, that the Board authorize release of $239 ,185 to Value Builders for construction of the new complex, with $10,600 being retained for .landscaping and labor compliance penalties. ROLL CALL: all Directors, aye. SO MOVED. CONSIDERATION OF PROPOSALS AND SELECTION OF AUDITING FIRM FOR THREE-YEAR PERIOD Director White advised that she, Di rec r o r Aguera, Manager Holzmeister and Finance Supervisor Colburn today interviewed the four CPA firms that presented proposals for auditing the PUD for a three-year period. She explained how the committee evaluated the proposals and interviews. Based on their experience with other utilities in California and the Northwest and the depth of service the company can provide, it was the committee's recommendation that Touche Ross and Company be selected as the District's auditing firm. Director Sutton noted that she did not have the opportunity to review the proposals. After some discussion, Director Maass moved that the District accept the proposal of Touche Ross to perform the 1987-89 audits subject to Counsel Phelps approving the contract. Their fee is $19,500 for the .first year and is to be adjusted by the Consumer Price Index or a maximum inflation rate thereafter. The motion was seconded by Director Aguera. ROLL CALL: all Directors, aye, with the exception of Director Sutton who abstained. SO MOVED. AWARD OF HIRE AND CABLE BIDS District Engineer Buckhouse reviewed the wire and cable bids and, in his memorandum dated January 15, made the following recommendations: Schedule A, General Pacific for a total price of $3 ,900; Schedule B, King Wire for a total price of $5,930.48; Schedule C, General Pacific for a total price of $1 ,695; Schedule D, King Wire for a total price of $1 ,840; Schedule E, King Wire , for a total price of $901; Schedule F, King Wire for a total price of $2,297.06; Schedule G, King Wire for a total price of $6,840; Schedule H, King Wire for a total price of $482. With respect to the bid summary, Director Sutton asked that a clarification be made. Alcan and Southwire are listed as having presented bids. The summary should show Wedco bidding two types of wire, Alcan and Southwire. Director Maass moved, and Director White seconded, that the Board make the awards for the District's annual supply of wire and cable as outlined in Mr. Buckhouse's memo. ROLL CALL: all Directors, aye. SO MOVED, AUTHORIZATION TO SCHEDULE PUBLIC HFARING TO CONSIDER BUDGET FOR 1988 After some discussion, Director. Maass moved that a public hearing be -4- scheduled to consider the 1988 budget for 7:30 P.M. at the second meeting in February, and that a special budget workshop meeting be set for 7:00 P.M. on Monday, January 25. The motion was seconded by Director Sutton, ROLL CALL: all Directors, aye. SO MOVED. CONSIDERATION OF RESOLUTION ELECTING TO BECOME SUBJECT TO THE CALIFORNIA UNIFORM CONSTRUCTION COST ACCOUNTING ACT The Board packets included a memo dated January 13 from Paul Colburn concerning the California Uniform Construction Cost Accounting Act. Counsel Phelps prepared a draft resolution for consideration by the Board. The benefit of adopting the proposed resolution and agreeing to comply with the cost accounting policies is that the bid limits are increased. Public projects of $15 ,000 or less may be performed by District employees , negotiated contract or by purchase order. Public projects of $50,000 or less may be let to contract by informal procedures as set forth in the legislation. Public projects of greater than $50,000 would still be let through the formal bidding process. Counsel Phelps noted that he reviewed the related amendments to the Public Contract Code in 1986. In memo dated February 27, 1986, he advised the District he discovered a provision in the Act which, by its strict terms, seems to prevent the District from benefiting from the law. In order to take advantage of the law, the construction that the public agency is considering must fall under the definition of "public project." In the case of a publicly owned utility system, "public project" shall include only the construction, erection, improvement or repair of dams , reservoirs, power plants and electrical transmission lines of 230,000 volts and higher. Since the District neither owns nor contemplates constructing any dams , reservoirs, power plants, or electrical transmission lines of 230,000 volts and higher, the District is specifically prohibited from taking advantage of the law. He suggested the District request that legislation be adopted to delete the appropriate subsection from the law so that the District's participation in the law could not be challenged. Mr. Holzmeister advised that the California Municipal Utilities Association sponsored the legislation, and it is their interpretation that no limitation was meant to be imposed on small districts. After some discussion , Director Maass moved that the Board adopt the resolution electing that the District become subject to the California Uniform Construction Cost Accounting Act. MOTION FAILED for lack of a second. Director Sutton suggested that the Manager contact other public agencies to see if they have elected to become subject to the Uniform Construction Accounting Act and to determine whether the portion of the act pertaining to size of transmission lines can be clarified. She asked that the matter ^ be placed on the next meeting agenda. -5- CLOSED SESSION The Board went into closed session at 10: 10 P.M. to discuss pending litigation pursuant to Government Code Section 54956.9(b)1. RETURN TO PUBLIC SESSION Public session resumed at 10:35 P.M. No action resulting from closed session was reported. ADJOURNMENT There being no further business before the Board, Director Maass moved to adjourn the meeting at 10:36 P.M. The motion was seconded by Director Aguera and passed. unanimously. TRUG R PUBL UTIL VY DISTRICT 77 Jo . Corbett resident Pre ared by .�. �.�. e'e Susan Macdonald, Deputy District Clerk sm/d5d.3 -6-