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HomeMy WebLinkAbout1985-06-17 Min - Board REGULAR MEETING June 17 , 1985 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by Acting President Maass at approximately 7 :00 P.M. in the TDPUD Board Room. ROLL CALL : Directors Cooley , Corbett and Maass were present . Directors Duffy was absent ; Director Hamilton was absent due to his recent surgery. EMPLOYEES PRESENT: Mary Chapman , Peter Hol zmei s to r and Susan Ford . CONSULTANTS PRESENT: Counsel John M. Phelps . OTHERS PRESENT: Among those present were Debbie Farrier , Je f f Crawford ,, Daren Shoop , Don Thursten , Tracey Shoemaker , Dawn Ivens , Kris McGinity , Kris Hunter , Jennifer Holmes , Dick VanLandingham , Frank Caliri and David Toussaint . APPROVAL OF MINUTES Director Corbett moved , and Director Cooley seconded , that the minutes of May 20 , 1985 be approved as corrected. All Directors , aye , by voice vote . SO MOVED. Director Cooley moved , and Director Corbett seconded , that the minutes of June 3 , 1985 be prepared in final form as written. All Directors , aye , by voice vote. SO MOVED, BILLS FOR BOARD APPROVAL There were no questions respecting the bills presented for consideration , and Director Corbett moved that they be paid ; seconded by Director Cooley, All Directors , aye , by voice vote. SO MOVED. BALANCE SHEETS AND BUDGETARY ANALYSES Director Maass noted that the Water and Electric Budgetary Analyses and Balance Sheets for May were received recently , and stated this is the first time in the eight years he ' s been on the Board the District has been so current - staff and management are to be commended . The Manager indicated Office Manager Chapman , Data Processing Supervisor Gillen and staff should receive the credit . Director Maass went on to say this is only one of many Positive things that have happened this past year. MANAGER' S REPORT Hirschdale Manager Holzmeister advised that the Hirschdale application has been prepared and delivered to the State . He will advise the Board when notification re the funding request has been received. Annual supply of poles It is necessary for the District to go out to bid for 35 ' and 50 ' poles , Mr . Holzmeister noted. After some discussion , Director Corbett moved , and Director Cooley seconded , that the District issue a call for bids for poles , with specifications to be determined by the Engineer. SO MOVED by voice vote . West River Street Mr. Holzmeister advised that Nevada County is going to pave a portion of West River Street from Highway 89 to the County Maintenance Barn. In that stretch of road there is an industrial park development the District has been working on. If the development goes forward , the PUD will need two water crossings on West River Street . Mr . Holzmeister indicated he ' d like to make the crossings before the County paves . He suggested cost estimates be Put together. If bidding is required , he 'd like to get them in for review at the next meeting; if the amount is under the bid limit , he ' ll get informal quotes and come to the Board for authorization to proceed. Director Corbett moved , and Director Cooley seconded , that the Manager be authorized to proceed either with the bidding process or obtaining quotes for the water line crossings . All Directors , aye , by voice vote . SO MOVED. SPPCo request for rate increase The Manager advised that a pre-hearing conference on the wholesale rate increase request has been set up for June 20th in Washington , D. C. It ' s believed that the Administrative Law Judge will ask that the parties meet and engage in settlement discussions , and that no decisions will be reached on the 20th. Martin McDonough and John Springer will be attending on behalf of the District . Director Maass stated that , based on experience , he would recommend the Manager also attend the pre-hearing conference . He further explained that the District has received a five month extension from the Federal Energy Regulatory Commission because of Mr. McDonough ' s and Springer ' s diligent work, which will represent a considerable savings to the District and its customers . SPPCo is asking for an increase of approximately 26% on the wholesale rates - because of the extension the PUD has already obtained , the earliest it may be implemented is November 1 , 1985 . By consensus , the Board authorized the Manager to attend the preconference hearing in Washington, D. C. Resale rate application Mr . Holzmeister noted that R. W. Beck has been acting as consultant in the review and analysis of SPPCo ' s rate filing. Phase I has been completed , and findings were recently presented to the District . Mr. Springer is now requesting that the District authorize Phase II of the scope of services. A definite estimate of the total cost cannot be made , since the District is now entering the litigation phase of the hearing process which requires attendance at the various hearings and meetings , or for the preparation of testimony. It was agreed that Beck ' s continued involvement is necessry , and , by consensus , the Board authorized additional consulting from them in an amount not to exceed $5 ,000 . PUBLIC INPUT There was no public input. CORRESPONDENCE Chuck and Helga Hayse Director Maass noted that the Board received a complaint relative to the billing process from Chuck and Helga Hayse in a letter dated June 8 , 1985 . The Manager indicated the Hayse ' s comments were not entirely accurate , and noted he would like to write them outlining the District ' s procedures . By consensus , the Board directed the Manager to respond to the Hayse ' s letter . COMMITTEE REPORTS No committees have met since the last meeting . CONSIDERATION OF AMENDED INSURANCE CLAIM PROCEDURE Mr . Holzmeister summarized the District ' s current the conduits will be installed on USFS property . He indicated the dishes and tower will be camouflaged and should not be visible except , perhaps , to a few people at Hilltop . The tower is about 80 ' high , and will not require a light ; it won ' t be necessary to remove any trees , and will take approximately 60 days for them to obtain final FCC approval. Director Maass stated that WestStar is now considered to be a quasi-public agency by Nevada County. Mr . Caliri went on to say they may use public land , but must first obtain the necessary use permits . Counsel Phelps advised that a lease agreement was prepared about a year ago , and only minor revisions will be necessary. Director Corbett moved , and Director Cooley seconded , that the Manager and Counsel be directed to prepare the necessary documents . All Directors , aye , by voice vote . SO MOVED. Counsel Phelps noted the lease will be ready for review at the next regular meeting. CONSIDERATION OF RESOLUTION APPROVING THE SPECIFICATIONS FOR GROUNDING THE TAHOE DONNER SUBSTATION AND ISSUING A CALL FOR BIDS It was clarified that this project is for grounding only and does not include grading or paving. Bidders on the grounding , grading and paving project , which was delayed a year , have been notified of the circumstances . Mr . Holzmeister recounted a recent incident where a squirrel contacted an energized bushing on a voltage regulator at the Tahoe Donner Substation and caused a phase to ground f ault , pointing out the inadequate condition of the substation ground grid. Damage to two circuit recloser controls could probably have been prevented if a proper ground grid was in existence . He recommended going out to bid on the project . Director Corbett moved , and Director Cooley seconded , that the Board adopt Resolution No. 8520 approving the specifications for grounding the Tahoe Donner Substation and issuing a call for bids . ROLL CALL : Duffy and Hamilton , absent ; all other Directors , aye , SO RESOLVED. WIRE BIDS — RECOMMENDATION AND POSSIBLE AWARDS Seven companies bid on the electrical distribution wire Mr . Holzmeister noted and he ' presented the Board with the bid summary. General Pacific ' s bids on Schedules A. B and C were conditional and , therefore , disqualified . procedure for processing insurance claims for damages , and briefly explained the suggested amendments , which would , if the District is liable and the claim is under $19000 , allow the General Manager to authorize payment. A follow-up system would also be implemented to assure the required time limits are met. Counsel Phelps stated he has reviewed the proposed procedure , and found no problem as long as a calendar is kept in order to insure that claims not settled within a suitable time are then formally rejected so that the six month statute of limitations will apply. Director Cooley moved , and Director Corbett seconded , that the Board amend the procedure for processing insurance claims for damages as recommended by staff . All Directors , aye , by voice vote . POSSIBLE APPROVAL OF DEVELOPMENT AGREEMENT WITH DONNER LAKE UTILITY COMPANY Director Maass reported that the easement documents required with respect to the Donner Lake Utility Company development agreement have not been delivered as yet , and the matter was put over . PROJECT 85-1 - CONSIDERATION OF PROGRESS PAY ESTIMATE Mr. Holzmeister advised that Progress Pay Estimate No. 2 representing 96% completion of the downtown water system improvement project is in order. With respect to Item No . A1631 Mr . Holzmeister noted that Hardrock has installed 91000 squre feet of paving , which is more than was estimated . . . . It will probably go about $20 ,000 over what was budgeted on the project , the reason being that the contractor has had to perform additional trenching to search for the lines as is common in rehabilitation projects . Director Corbett moved , and Director Cooley seconded , that the Board authorize Progress Pay Estimate No . 2 in the amount of $80 , 192 . 56 to Hardrock Construction. All Directors , aye , by voice vote. SO MOVED. REQUEST OF WESTSTAR TO LEASE SPACE AT THE NORTHSIDE TANK FOR A MICROWAVE RELAY STATION Frank Caliri of WestStar Communications was present , and requested that the Truckee Donner PUD lease to them a portion of land at the Northside Tank site on which to construct and maintain two earth stations . He advised that WestStar is also negotiating with the Forest Service and Mr . Akerstrom with respect to their properties . The tower and dishes will be placed on the Akerstrom property; /""-- Director Corbett moved , and Director Cooley seconded , that the wire bids be awarded to the low bidders as follows : Schedules A . B , E and F to General Electric Supply ; Schedules C and D , to Pirelli Cable Corporation ; and Schedle G to General Pacific . All Directors , aye , by voice vote. SO MOVED, POSSIBLE AMENDMENT TO BILLING PROCEDURE The Manager explained the differences between the current and proposed billing and termination of service procedures . The proposed procedure prepared by Mary Chapman followed action starting with day one when a cycle is billed and mailed , through day 48 when service may be disconnected . It was noted that a pending Assembly Bill will require public utilities to give a - ten-day notice of termination which cannot take effect for five days from the date of the notice ( 15 days total) . Mrs . Chapman advised that the new procedure would shorten the time between reading the meters and billing by approximately five days . Some computer program and form changes will be required , and she requested that the new procedure be implemented August 1 . 1985 . Director Cooley moved , and Director Corbett seconded , that the Board amend the billing and termination of service procedures as recommended by staff . All Directors , aye , by voice vote . SO MOVED. CONSIDERATION OF ARTHUR ANDERSEN AND COMPANY' S RECOMMENDATIONS TO IMPROVE AND STREAMLINE THE DISTRICT'S ACCOUNTING SYSTEM Mr . Holzmeister advised that Arthur Andersen & Company did some basic research during the audit , and submitted a letter suggesting changes to simplify some areas of the PUD ' s accounting system. Two phases were recommended. The first phase , estimated at $6 ,000 , could be implemented before determining whether to go forward with the second phase . It was mentioned that non-compliance with REA regulations could result in an increased interest cost , and that Arthur Andersen would be unable to issue the REA letter they have historically provided upon completion of the audit . It was duly moved , seconded , and approved by voice vote , that the District go forward with Phase I of Arthur Andersen ' s proposal . CONSIDERATION OF RESOLUTION AUTHORIZING AGREEMENT WITH THE DEPARTMENT OF GENERAL SERVICES FOR RADIO MAINTENANCE After review of the proposed agreement , Director Corbett moved , and Director Cooley seconded , that the Board adopt Resolution No. 8521 authorizing the agreement with the Department of General Services for radio maintenance . ROLL CALL: Duffy and Hamilton , absent ; Cooley , Corbett and Maass , aye. SO RESOLVED. CORRESPONDENCE Truckee Sanitary District Director Maass mentioned the letter of June 4 . 1985 from Jane Turner , Manager of the TSD re the Riverside Drive project , apologizing for the misunderstanding , and urging the TDPUD to reconsider a joint venture . Manager Holzmeister advised that he contacted Dan Cook regarding a written report on how this matter occurred , and Mr . Cook said he would put something together. Mr. Holzmeister also indicated Dave Rully , Water Foreman , has a better understanding of the circumstances and will be returning from vacation next Monday. Director Maass noted that the TDPUD did not call for bids on this project and , therefore , cannot reject the bids received on Schedule C. He indicated the District should ask TSD to reject all bids on Schedle C , since they were not authroized to call for such bids . He went on to say the TSD was formed under the Sanitary District Act and doesn' t have the authority to build water lines . Director Corbett stated he would like to see the Engineer ' s estimate for the water line portion of the project ; there could be a savings to the District in going forward with a joint venture. Director Maass indicated he is hesitant to go forward because there isn' t adequate time at this point to review the documents thoroughly. Director Cooley ' s position was that the District shold go ahead with a joint project if at all possible . Counsel stated that the District hasn ' t had anything to do with the preparation of the forms and hasn ' t reviewed the plans and specifications ; the documents were prepared for the Sanitary District . The District could pay them for the water portion of the work , or TSD could assign the rights on Schedule C to the District . The contract could be rewritten. He also noted there are some irregularities - he stated he doesn ' t know whether the TSD can solicit bids for a water system. loom- No direction was given or action taken. REGULAR MEETING OF JULY 110 1985 Director Maass advised the Board that he will not be at