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HomeMy WebLinkAbout1986-01-06 Min - Board REGULAR MEETING January 6, 1986 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Maass at 7:00 P.M. in the TDPUD Board Room, ROLL CALL: Directors Cooley, Corbett, Hamilton, Sutton and Maass were present. EMPLOYEES PRESENT: Mary Chapman, Ron Reynolds , Bruce Grow and Peter L. Holzmeister were present. CONSULTANTS PRESENT: Counsel John M. Phelps. OTHERS PRESENT: Dick VanLandingham and Dave Toussaint were among those present in the audience. APPROVAL OF MINUTES Director Corbett noted that his name is misspelled on Page 5 of the December 2, 1985 minutes, and asked that it be corrected. Thereafter, Director Corbett moved, and Director Hamilton seconded, that the minutes of December 2, 1985 be approved. All Directors, aye, by voice vote. SO MOVED. STATEMENT OF GENERAL FUND AND BILLS FOR APPROVAL Director Sutton ascertained that the purchase of a new line truck from F. B. Hart in the amount of $40,571.50 and a water utility truck from Jordan's Thermo King in the amount of $12,056 were bid items. Director Hamilton moved, and Director Corbett seconded, that the Board approve the bills presented for payment. ROLL CALL: All Directors, aye, with the exception of Director Sutton who voted no, stating her negative vote was partly because she has not received copies of the bills being considered or a copy of the bills paid automatically in the amount of $1809000 +. SO MOVED. MANAGER'S REPORT Liability Insurance - California Special District Association Joint Powers Agreement Manager Holzmeister noted that the cost of liability insurance has increased substantially and the District has heard another major increase in premium is due in 1986. Insurance companies are now reluctant to write policies covering certain liabilities, such as damages from hazardous materials. The PUD has received a letter and proposed joint powers agreement from the CSDA programs. The agreement would establish an organization to provide insurance coverage for its members. Execution of the agreement would not commit the District to participating in development of the program. The -1- NWPPA is also working toward the formation of an insurance pool. Mr. Holzmeister recommended the District participate in the study phase of both the NWPPA and CSDA so it is possible to choose the best insurance option. He will present further information to the Board when available. California Municipal Utilities Association statewide public education program on public power The Manager noted the CMUA is developing a statewide public education program on public power. During 1985, Congress considered several pieces of legislation detrimental to public power; public agencies had a hard time gaining support in Congress. Those in the public power field have ignored the responsibility to keep the public and Congress informed on the benefits of public power. CMUA has asked for District financial participation in the education program. Mr. Holzmeister suggested writing a letter advising of our interest and asking for further information. The Board seemed to be in agreement. Trends in the Public Utility District Manager Holzmeister reviewed with the Board and audience trends concerning the number of water and electric customers, growth in sales of power and water, kilowatt hours sold, average monthly residential electric use, coincidental peak demand and load factor, peak demand by substation, comparison of growth in KWH sales and peak demand and hourly demand changes. There was some discussion regarding different pricing mechanisims to shift loads. Copies of the various charts have been attached to these minutes for reference. PUBLIC INPUT There was no public input. CORRESPONDENCE Nevada County Grand Jury The Chairman noted that a request from the Nevada County Grand Jury for copies of the lease agreement between the PUD and WestStar and related permits for WestStar's receiving dish was received by the District on December 20, 1985. Director Maass contacted Grand Jury Foreman Rudicel and informed him the information would be provided. The lease agreement, which states that the tenant shall comply with all applicable regulations and includes an indemnification clause , has been located , and WestStar's Manager, Marsha Berkovich, presented the Board with the building permit. Manager Holzmeister was directed to prepare a letter and forward the requested copies to the Grand Jury. Incoming mail Director Sutton asked that the date stamp placed on incoming mail be inked -2- so as to be more legible on copies made for the Directors , and inquired as to whether an incoming mail log is kept , as was done in the past. Mr. Holzmeister was not aware of such a log. Director Sutton noted that the Board is not getting copies of all correspondence coming to the District, and the Manager advised that he is trying to make good judgments as to what should be copied to the Board and what can be taken care of quickly and routinely by staff. DOWNTOWN TRUCKER WATER LINE REPLACEMENT, PROJECT 85-1 - CONSIDERATION OF JOHN BOREN'S CLAIM AGAINST RICHARD COX/HARDROCK CONSTRUCTION AND RELEASE OF 10% RETENTION Mr. Holzmeister summarized the events leading to the dispute between John Boren and Richard Cox over the paving on the 85-1 project. He noted a meeting attended by Dave Rully, John Boren, Richard Cox and himself was held on December 23 , 1985. The parties agreed to resolve the dispute on the quantity of paving installed in the spring of 1986 when a new measurement can be taken, with John Boren, Richard Cox and a representative of the District present. The parties agreed that they would review the unit price for paving to a 4" depth. The unit price approved by the District was $4.25 per square foot; the unit price requested by Richard Cox is $5 per square foot. This matter will be resolved after a consultation with Dan Cook and Gordon Richards. The parties agreed to review the quantity of bid item A14. ( The District Engineer approved 14 cubic yards; Richard Cox claims 17 cubic yards of miscellaneous concrete.) Mr. Cox agreed to make payment to John Boren in the amount of $10,963.80; Mr. Boren agreed to withdraw his stop notice contingent on his receiving payment in the amount of $10,963.80 from Richard Cox. Responding to Director Sutton's question, Mr. Holzmeister noted that Mr. Cook was notified of the tentative meeting date. When the meeting was finalized, he attempted to contact his representative in the area, but the representative could not be located. The Manager further noted that Mr. Cook approved the $21 ,137.80 owed Richard Cox. Another measurement of the paving installed will be taken in the spring; if the measurement is larger , the Board will be asked to approve a change order and pay additional sums to Mr. Cox in an approximate amount of $2,000. With respect to releasing the retention to Mr. Cox, Counsel Phelps stated it would first be necessary for Mr. Boren to withdraw his stop notice. Director Sutton stated that the Board's obligation is to the public , not the contractor***this is a public works job involving sewer lines and public rights of way as well as water lines. She said if the District plays with the figures and contract without the authorization of the engineer that the District put in charge of the project, the District (in her opinion) discredits the integrity of the project. She further stated she has a real problem with doing this. The Manager advised that the project is complete; $181 ,452 has been paid to the contractor to date; Dan Cook signed off the project as complete, and recommended paying Mr. Cox the $21 ,137.80 retention before the stop notice was filed. The agreement signed by Mssrs. Holzmeister, Cox and Boren states the stop notice will be lifted, Mr. Cox paid $21 ,137.80, and Mr. -3- ,.-,. Boren paid $10,963.80 by Mr. Cox. Director Sutton explained why there is a 35-day waiting period during which 10% of the total cost of the project is withheld, and stated the stop notice was filed because there is a dispute as to the amount to which Mr. Boren is entitled. She asked the policy of the District regarding contract standards and the authority of .the engineer who has been designated by the District in all matters relating to the contract. Mr. Holzmeister advised the policy is that when a project is complete, the engineer signs off and recommends release of the retention. The Board then consideres this recommendation and approves or disapproves release of the retention. He further noted there is no policy saying the engineer is to resolve disputes concerning stop notices. Mr. Holzmeister mentioned that the Board directed him to meet with the involved parties to attempt resolution of this matter. An agreement was reached (as indicated earlier) and he now recommends releasing the retained funds upon withdrawal of the stop notice by Mr. Boren. Director Hamilton moved, and Director Corbett seconded, that the retained amount of $21 ,137 .80 be paid to Mr. Cox upon receipt of stop notice withdrawal from Mr. Boren. ROLL CALL: Cooley, Corbett, Hamilton and Maass , aye; Sutton, no. SO MOVED, CONSIDERATION OF AFArRUR ANDERSEN'S RECONMENDATIONS RE IMPROVING ACCOUNTING PROCEDURES Mr. Holzmeister noted Arthur Andersen's finding that the District's inventory records maintained unit quantities for every item including some which cost less than twenty-five cents. The system was cumbersome and did not facilitate an optimal balance between cost control and efficient use of resources. Under the new system recommended by Arthur Andersen, only material units of construction and items which cost more than $25 are controlled and recorded on a per-unit basis. Items which cost less than $25 are controlled in case level only. The foremen have open access to these as individual units. Records are not maintained for usage of these items on the individual jobs. The Manager advised that this change is not one that would be disapproved by the REA. Director Hamilton suggested continuing with the new system on a trial basis and having a June inventory for comparison with the old system. A warehouse disbursement system was suggested. After lengthy discussion , Director Hamilton noted the new system was implemented two months ago and asked for what purpose the matter was placed on the agenda. Manager Holzmeister stated he thought this particular recommendation regarding inventory made by Arthur Andersen was a procedural rather than a policy matter, so he went forward with implementation. He noted there are times the Board might disagree with his judgment and, he went on to say, he expects to be advised in such an instance. The Chairman said this seems to be a grey area and he could argue either way. Director Hamilton moved, and Director Corbett seconded, that the new system remain in effect until November (at which time the Board will make a -4- �—. comparison with the old system and decide which is more accurate and effective). All Directors, aye, by voice vote. SO MOVED. DELEGATIONS FROM THE BOARD OF DIRECTORS TO THE GENERAL MANAGER Director Sutton stated she has not yet pursued her review of the proposed document with the Manager; she said she has some concerns about goals set forth that have not been annunciated by the Board. President Maass advised that the goals were adopted when Mark Schinman was Interim Manager almost two years, and are reaffirmed in the budget narrative annually. These delegations to the General Manager are the means by which to achieve the goals. Director Sutton asked for a copy of the goals as adopted by the District. Director Hamilton moved that consideration of the delegations be put over to the next meeting to allow Director Sutton time for review; seconded by Director Corbett and passed unanimously. CONSIDERATION OF AGREEMENT WITH RONDI THORWALDSEN FOR USE OF PUD LAND Mr. Holzmeister noted that the questions raised at the last meeting by Rondi Thorwaldsen were whether the Hilltop Cross-country Ski School trail crosses land owned by the District and, if so, if she may have permission to use such land. Staff has determined that the District does own the land in question, but feels there are no operational problems with the skiers crossing the land provided an appropriate agreement is executed setting forth the appropriate hold harmless clause , an insurance policy and a description of the areas of the permitted crossing. He said there may be legal concerns the Board should evaluate. Location of the ski trail, perpetual easements and liability insurance were discussed. Director Sutton stated that Counsel Phelps' law firm represents Rondi Thorwaldsen and she does not think he should be advising the District in this matter. Mr. Phelps noted he represents Ms. Thorwaldsen in her negotiations with Hilltop. Director Hamilton moved that the District discontinue any further action because there are so many unanswered questions. Director Sutton seconded the motion, adding that if Ms. Thorwaldsen wants to come back with all the information and pay all related expenses involved, the District will reconsider the matter. ROLL CALL: Cooley and Corbett, no; Hamilton, Sutton and Maass, aye. SO MOVED. REPORT ON STATUS OF PROPOSED NEVADA COUNTY GROUNDWATER ORDINANCE Manager Holzmeister reported that he met with Special Counsel McDonough and John Sharp of Hyd roSearch for advice regarding the proposed Nevada County Groundwater ordinance, then all three met with Melanie Wellner, an attorney /''", for the County, to discuss changes in the ordinance. Mr. Holzmeister noted it would cost the District approximately $100,000 to implement the ordinance, and about $20,000 annually to continue compliance. -5- The District's approach to revising the ordinance, Mr. Holzmeister stated, includes setting forth on a proper hydrological basis the area described as the Truckee Groundwater Basin; the Truckee River Basin and the fractured rock area tributary to the basin should be protected in the ordinance. The ordinance should recognize that the PUD, Donner Lake Utility Company and Glenshire Mutual Water Company have invested substantial funds to develop wells of a specific capacity. When the wells were developed, the agencies acted in good faith that they would be able to use the wells to serve customers within their boundaries. Therefore, the ordinance should "grandfather in" the existing wells by exempting them from the terms of the ordinance. Director Sutton suggested asking the County to exempt areas located within the TDPUD's boundaries. Mr. Holzmeister said the County attorneys opinion that the ordinance might be found invalid if it shows clear preference to a particular agency. I was noted that Mr. McDonough reports groundwater in California is not regulated; there is nothing to protect the District from someone buying land and pumping water for use elsewhere. At Director Sutton's request, Mr. Holzmeister briefly informed the Board of his meeting with the five Sierra Mountain utilities concerning Sierra Pacific Power Company's water plan, which included both surface and groundwater. Regarding the groundwater ordinance proposed by Nevada County, Director Hamilton moved that Attorney McDonough and Hydrologist Sharp be authorized to act on the District's behalf totally - to attend meetings, keep the Board informed, propose new language for the ordinance, etc. ; seconded by Director Corbett and passed unanimously by voice vote. Director Sutton indicated she doesn't think the three suggested changes mentioned by Mr. Holzmeister earlier are what she's looking for. ADJOURNMENT The Chairman ascertained there was no need for a closed session, and Director Hamilton moved that the meeting be adjourned at 9:00 P.M. The motion was seconded and passed by voice vote. SO MOVED. TRUME DONNER PUBLIC UTILITY DISTRICT J es A. Maass, President Prepare y Susan M. Craig, Deputy DistriA Clerk -6-