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HomeMy WebLinkAbout1987-12-07 Min - Board December 7, 1987 REGULAR MEETING The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Corbett at 7:05 P.M. in the TDPUD Board room. ROLL CALL: Directors Maass , Sutton, White and Corbett were present ; Director Aguera was in the hospital recovering from an appendectomy. CONSULTANTS PRESENT: Counsel John M. Phelps and Engineer Keith Sauers. EMPLOYEES PRESENT: Mary Chapman, Paul Colburn, Peter Holzmeister and Susan Macdonald. OTHERS PRESENT: Among those present in the audience were Margrith Kuttel, Kelly Cameron, Robert Tilton, Jenni Tucker, Greg Aslanian, Matt Curtis , Phil Flanagan, Angela Childress, Kim Zirbel , Rick Ouchida, Stacy Monosso and Dan McEwing. ELECTION OF OFFICERS Director Sutton nominated John Corbett for President of the Board; Karen White nominated James Maass. A secret ballot was cast and both candidates received two votes. Director Maass moved that the election be put over until a full Board is present. SO MOVED by consensus. APPROVAL OF MINUTES Director Maass moved, and Director Sutton seconded, that the minutes of October 19, 1987 be approved as written. All Directors , aye, by voice vote. SO MOVED. After a brief review of the written corrections proposed by Director Sutton, Director Maass moved that the Secretary be directed to prepare the minutes of November 21, 1987 in final form as corrected. The motion was seconded by Director Sutton. All Directors, aye , by voice vote. SO MOVED, STATEMENT OF GENERAL FUND AND BILLS FOR APPROVAL Responding to Director Sutton' s question, Mr. Holzmeister noted that facilities fees always go into the general fund but are identified as being restricted. He answered questions relating to the Frank B. Hall bill for Directors' and officers' errors and omissions coverage in the amount of $1 ,620.31; the check made out to Costco for a front-office copier in the amount of $909.46; the check for expenses relating to attendance by Director Corbett at the NCPA conference and Nevada County Water Advisory Committee meetings in the amount of $119.96; the $1 ,238 check made out to CSDA (California Special District Association)for membership. Director Sutton noted payment to Dr. James Evans for glasses for one of the employees , and Mr. Holzmeister explained that the District pays for -1- , -• prescription safety glasses for union employees. Director Sutton asked about the change in format on pages 7 and 8 of the Paid Invoices for Board Review; Mr. Colburn said he didn't know the reason for it but would check into the matter. Responding to Director Sutton's question about the Nevada Copy System check in the amount of $328.60 , Mr. Holzmeister noted this was for increased copy units; the check to the Nevada County District Attorney was an amount deducted from an employees check for child support; the early payroll check in the amount of $718.41 was for an employee leaving on vacation. Director Sutton questioned the check for a meal at the Beginning Restaurant in the amount of $19.91 . She asked if there is an established limit on the cost of a meal. Mr. Holzmeister explained that there is no limit; if he feels the meal bills are high he questions them. He advised that the check to Super 8 Motel in the amount of $318.64 was for lodging for the computer system representatives who are training the PUD employees on the new system. Responding to Director Corbett's questions, Mr. Holzmeister noted that the $11464.94 check to American General Life Insurance is for the employees' pension plan. For the benefit of Director White, Mr. Holzmeister explained the consumer deposit refunds and the telephone reimbursement to employees for stand-by duty. Director Sutton noted that, with respect to conference expenses submitted by Mr. Holzmeister and Director Corbett , Mr. Corbett's air fare was $75 more because he left out of Oakland rather than Reno. She indicated she thought he should be responsible for paying the difference. Director Maass said sometimes this works the other way and a Director covers expenses for which the District is actually responsible. He suggested consideration of the conference expenses be put over and the Board agreed. Director Maass moved that the bills submitted for consideration, with the exception of the NWPPA/NRECA conference expenses , be approved for payment. All Directors, aye, by voice vote. SO MOVED, MANAGER'S REPORT NWPPA conference on preparing for a takeover Mr. Holzmeister reported that he and Director Corbett attended a conference in Portland on how to avoid being taken over by an investor owned utility. It dealt with how to be a good utility. He stated he felt it was an excellent conference , and provided his notes to the Directors for their information. Purchase of SPPCo facilities The Board authorized staff to negotiate the purchase of five poles -2- installed by Sierra Pacific to the Weems property. The lines would also serve Bruce Grow, the TSD pump station and a few future customers. At this time , a fair price has not been agreed upon. However, SPPCo did give permission to attach a District conductor to those poles pending resolution of a purchase agreement. Sierra Pacific has not responded to the remainder of the District's request to purchase the rest of their distribution facilities installed along Glenshire Drive. Mr. Buckhouse will be contacting Earl Cooper of SPPCo upon his return to town this week. Water quality analysis A memorandum from Engineering Technician Black was included with the Board packet which gave a status report on the water quality analyses required by the state of California. It was noted that she would like to describe why these analyses are performed and what the results reveal about the water at a future Board meeting. Preparation of January newsletter The Board discussed the list of possible articles , a timeline and cost estimate for the next District newsletter. It was decided that the budget process, new billing format , building costs , featured employees , open house , equal payment billing, Board meeting schedule and a message from the Manager would be included in the January newsletter. It should be ready for mailing on December 31 , 1987 , and the cost should be approximately $3,000. Electric outage Mr. Holzmeister reported that there was a power outage late in the afternoon of December 6 which affected Prosser Heights , Prosser Lakeview Estates and Coachland Mobile Home Park. It was probably a limb falling through the lines, he said, and power was restored in approximately three hours. PUBLIC INPUT Hirschdale Joe Suter, contractor for the Hirschdale water system improvements, was present in the audience. He requested that the Board advise him as to who is authorized to give him direction on this project. Mr. Holzmeister advised that Dan Cook of Cook Associates is the representative who has authority to speak on behalf of the District. Mr. Holzmeister also noted that the bill relating to the project which was received recently should be submitted to Cook and presented to the Board as a progress pay request. Mr. Suter noted that a road may have to be constructed for the well driller , and the work would be on a time and material basis. He indicated -3- he would not proceed until a written authorization was prepared. CORRESPONDENCE There was no correspondence. COMMITTEE REPORTS There were no committee reports. SURPLUS ITEMS - CONSIDERATION OF DONATING CERTAIN ITEMS TO THE TAHOE TRUCKEE UNITIED SCHOOL DISTRICT; CONSIDERATION AND POSSIBLE ACTION ON A RESOLUTION AUTHORIZING SAME Mr. Holzmeister provided the Directors with a list of surplus material along with the value he estimated for each item. A major consideration in assessing a value , he noted, was past experience in disposing of surplus items; many times disposing of the material is much more difficult than it is worth. Counsel Phelps noted that his wife is a Trustee of the Tahoe Truckee Unified School District. Further, he said neither he or his wife have anything to gain financially or otherwise from the proposed transfer of surplus property to the School District. He stated he does not believe that a conflict of interest exists on his part. Director Sutton made reference to Counsel Phelps' letter of December 1 , 1987 that stated the Board should cite some benefit that accrues to the PUD as a result of giving the items to the School District and also mentioned Mrs. Phelps' involvement with the School District. Director Sutton stated she thinks there may be a conflict of office on the part of Mr. Phelps, and recommended that the Board get an opinion from Mr. McDonough before taking action. Mr. Phelps advised that he is not an official of the District and therefore cannot be in conflict of office. He said he feels there is no risk on his part if the Board adopts findings that the transfer of these surplus items is to the benefit of both Distircts. Director White noted that some equipment on the surplus list may not operate correctly and could cause damage or injury; she suggest a hold harmless clause be provided by the School District to protect the PUD. Director Maass moved that the Board adopt a resolution (No. 8757) donating certain surplus items to the Tahoe Truckee Unified School District. The resolution is to include findings that the transfer is beneficial to the PUD, and also set forth the requirement that the TTUSD provide a hold harmless agreement. The motion was seconded by Director White. ROLL CALL: all Directors, aye, with the exception of Director Sutton, who voted "no." She stated for the record she is concerned over the lack of legal counsel other than by counsel who is possibly in conflict of office, and she is also concerned over the lack of a draft resolution. SO RESOLVED. REQUEST TO LIGHT HILLTOP CHRISTMAS TREE; CONSIDERATION AND POSSIBLE DIRECTION -4- r,.•.. Consideration of this item is unnecessary since the tree has already been decorated. REPORT ON STATUS OF PROSSER HEIGHTS WELL AND POSSIBLE OPTIONS; POSSIBLE DIRECTION Directors Maass and White and Counsel Phelps, all customers served by the Prosser Heights Well , noted fluctuations in their water pressure. Mr. Sauers attempted to explain what could be causing the fluctuations. Consulting Engineer Sauers noted that several weeks ago the Water Department observed that water production at the Prosser Heights Well had fallen significantly. The pump was removed. for inspection; several broken impellers were discovered, as well as damage to the bearings and shaft. Mr. Sauers reviewed with the Board available options. 1) Repair the motor and pump parts at an approximate cost of $14 ,000. He noted the equipment is obsolete. The machine work could be done, but no one would guarantee performance of the old equipment. 2) Repair the motor and provide a new pump at a cost of about $17 ,000. This option, Mr. Sauers said, has some of the disadvantages of the first option, namely relying on a reworked 24-year old motor. It is submersible, set 350 feet below ground surface, so it is not accessible for easy repair. 3) Purchase a new submersible pump and motor. Two choices are available - one at 1 ,800 rpm (with a life of 12 to 14 years) at an approximate cost of $25 ,000; or one at 3 ,600 rpm (with a life of 7 to 8 years) at an approximate cost of $13,500. The new equipment would be guaranteed for one g year. The slower revolving equipment lasts longer because it is not wearing so rapidly , and it costs more. 4) Purchase of a new vertical turbine pump and motor at a cost of about $221000. Mr. Sauers advised that a vertical turbine would have a surface mounted motor revolving at 1 ,800 rpm, driving a pump unit 350 below using a long shaft with water lubricated bearings. The advantage is the motor is accessible for maintenance. The disadvantage, he said, is the long shaft costs money and the bearings are subject to wear. Mr. Sauers recommended that alternatives 1 and 2 be rejected as reliability cannot be expected from rebuilt 24-year old equipment. He noted that any of the units in alternatives 3 and 4 would be acceptable , and the advantages and disadvantages of these options were discussed by the Board. Manager Holzmeister said that money was not speciFically budgeted for this improvement, but there are surplus funds in the Water Department that can be used. Director Maass moved , and Director Sutton seconded, that the Board direct Keith Sauers to prepare the necessary documents to go out to bid for a vertical turbine pump and motor, and that the documents be considered by the Board at the next regular meeting. ROLL CALL: all Directors, aye. SO MOVED, CONSIDERATION OF PROGRAM INITIATING BUDGET BILLING; POSSIBLE DIRECTION Office Supervisor Chapman requested that the Board consider a budget billing system in an effort to improve the services offered to District -5- customers. She noted that this type of system is currently being offered by many utilities including Sierra Pacific and Plumas-Sierra Electric. Mrs. Chapman explained that budget billing is a system by which the customer's projected bill for the next year is averaged out over a twelve month period. The calculated average amount is what the customer pays each month. This calculation is based on the customer's consumption history. The program helps those who prefer to budget their monthly expenses and eases the burden of high winter bills. It is especially helpful to those on a fixed income. The program would begin each year when the power bills first begin to drop, Mrs. Chapman explained. The customer would pay an equal payment each month, with his account running a credit balance for the majority of the year. At the end of the year the balance would be zeroed out through a payment or refund or rolled over into the next budget year. Accounts would be monitored closely so that the budget balance at the end of a budget year falls within an established range. The budget billing program would be made available to all residential customers. Customers going onto the program would need to have a 12 month record of consumption history and have no previous balance on their account. The budget billing payment amount would be determined by taking the average consumption over the last 12 months and multiplying it by the current rate. The system would then add in all other fixed monthly charges. Mrs. Chapman noted that the program would begin as soon as the monthly bills begin to drop (with the April readings). The first budget payments would be billed on the April bill. If the program is approved, customers will receive notice by way of an article in the January newsletter and a message on the bills in March. A form explaining how the program works with a tear-off section for customers to sign and return if interested in participating will be included with the March bill. If a customer misses making a budget payment, he will be removed from the system and must make his payments in the usual manner. The settle-up month will be March of each year. Ending balances will be rolled over into the next year; substantial credit balances could be refunded upon request. Each month staff will review the account balances of the budget billing customers. If it appears that a customer' s consumption has changed significantly , the District reserves the right to adjust the payment 'amount and a letter explaining the adjustment will be sent to the customer in advance. The District also reserves the right to adjust budget billing payment amounts in the event that there is a rate increase or decrease. Since the basic program to implement a budget billing system is part of the billing system, the programming costs to make minor modifications should not cost very much , the Office Supervisor said. There would be no additional .forms as the new bill will have adequate space to print the information, but there would be some labor cost to notify the customers of the program and to actually get it going. -6- The proposal was discussed and questions posed by the Directors were answered. Director Sutton suggested calling the program an "equal payment plan," rather that budget billing. Director Maass moved, and Director Sutton seconded, that the Board approve the equal payment plan program as presented by Mary Chapman, with implementation in April and the settle-up month in March. ROLL CALL: all Directors , aye. SO MOVED. Director Sutton expressed her concern about the dates of implementation and settle-up and noted they may need to be adjusted in the future. Mrs. Chapman stated she will provide the Board with follow-up information. Director Maass requested a report in March of 1989 as to how many credits are recorded as compared to amounts owing; Director Sutton asked for a report in June as to how many customers have signed up for the program and how many have dropped out. CONSIDERATION OF AUDIT PROPOSAL FROM ARTHU ANDERSEN AND REPORT FROM STAFF; POSSIBLE DIRECTION Finance Supervisor Colburn noted he has reviewed Arthur Andersen's proposal for performing the 1987 audit and feels the work, could possibly be done more economically. He suggested that the Board consider requesting proposals from other audit firms. He recommended that the District select a f irm and award a three year contract so that the PUD would receive the benefit of familiarity in the second and third years. He also proposed that the District consider issuing a consolidated statement which would allow the separation of the electric and water operations , but would provide a much more effective management tool. Director Maass moved that the Board direct the Manager and Finance Supervisor to prepare the appropriate documents requesting three-year proposals from auditors with the stipulation that their performance will be reviewed on an annual basis. The motion was seconded by Director White. Discussion ensued regarding preparation of a consolidated statement , but no decision was made. ROLL CALL: all Directors, aye. SO MOVED. CLOSED SESSION The Board adjourned to closed session at approximately 9:01 P.M. pursuant to Government Code Section 54956.9(c). RETURN TO PUBLIC SESSION The meeting was returned to public sesson at about 9:50 P.M. There was no direction given or action taken as a result of closed session. ADJOURNHENT There being no further business be`ore the Board, after motion duly made, seconded and passed unanimously, the meeting was ajourned. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Pr dent -7- r ,.., Prepared b ' Susan Macdonald, Deputy District Clerk sm/d5c.15 -8-