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HomeMy WebLinkAbout1986-03-17 Min - Board ••. REGULAR MEETING March 17, 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: Ron Reynolds, Tom Buckhouse, Pete Silva, Peter Holzmeister and Susan Craig were present. CONSULTANTS PRESENT: Architect Dale Cox and Counsel John M. Phelps. OTHERS PRESENT: Among those present were C. R. V anLandingham, Karl Kuttel, Alan Miller , Christine Wahn, Nancy Hopkin, Bill Long, and Christine Napolitano. APPROVAL OF MINUTES With respect to the minutes of February 18, 1986, Director Sutton had questions regarding (1) whether or not the Board actually directed the Manager to discuss sponsoring legislation to amend the law requiring an ordinance for expenditures of $100,000 or more with Jerry Jordan of CMUA and possibly with Senator Doolittle (Page 3, Paragraph 1) , and (2) if the Board, by consensus, directed the Manager to contact Sierra Pacific with regard to wheeling (Page 5, Paragraph 1). She indicated she would like to listen to the tapes of that meeting and submit corrections if appropriate. Consideration of these minutes was put over to the next meeting. Director Corbett moved, and Director Cooley seconded, that the Secretary be directed to place the minutes of March 3, 1986 in final form as written. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL Director Sutton stated she has several questions about consultant bills which she will discuss during office hours with the Manager. Director Sutton asked why expenses relating to the CSDA and CMUA conferences were reported in letter form rather than on an expense sheet, and noted she thinks the District should do some kind of review on how expenses are reported to the Board, and whether the expense limits are in line. The Chairman directed Directors Hamilton and Sutton to work with staff to develop a new policy pertaining to payment of expenses. Director Hamilton moved, and Director Cooley seconded, that the bills presented for consideration be paid. ROLL CALL: all Directors, aye. SO MOVED. MANAGER'S REPORT Law pertaining to bidding requirements and expenditures exceeding $100,000 -1- �. Regarding the draft letter to Jerry Jordan, Executive Director of the California Municipal Utilities Association, which the Manager presented to the Board for consideration, Director Sutton asked that the matter be listed specifically on a future agenda. PUBLIC INPUT There was no public input. CORRESPONDENCE Kuttel request to have overhead wires removed On March 10 , 1986 , Karl Kuttel presented a letter to the District requesting that the overhead power lines from South River Street to Hilltop (which cross over his private residence) be removed. His letter stated that the power lines fell on his roof in 1982, he has had leakage problems since that time, and has had to resheet the entire roof. The letter also noted that the time limit set forth by the District and Hilltop to relocate the lines has not been kept. Manager Holzmeister gave a brief chronology of events beginning in late 1973 when Mr. Kuttel was constructing his home. He noted that former Manager Ward stated the lines would be rerouted in 1983. Interim Manager Schinman pointed out the possibility of prescriptive rights and the cost involved in relocating the lines and referred the matter back to the Board. On January 6 , 1984, Mr. Kuttel wrote to the Board stating that the 1973 building permit was issued upon the condition that the PUD would remove the lines. Mr. Schinman advised Mr. Kuttel that the line crossing his home would be removed with the underground installation to Hilltop, or with the reconductoring of the Martis/Truckee line. It was noted that the District would move the lines at Mr. Kuttel's convenience if he would agree to cover the costs. Mr. Kuttel stated that when the lines fell on his home in 1982 (the second occurrence) his roof was damaged to the extent of $4,000 to $5,000. The Board advised him of the claim procedure he should follow. There were questions regarding the G095 clearance requirements, whether there is an easement for the lines, and prescriptive rights. The Chairman directed that further research be conducted, that Counsel provide a legal opinion on prescriptive rights and that the matter be placed on the next agenda as a New Business item. COMITTEE REPORTS Nevada County Water Agency Advisory Council Director Corbett noted that he attended a meeting of the Nevada County Water Agency Advisory Council on March 13th, and provided the Directors with a written report. He said a copy of the minutes would be sent to the District when available. There was some discussion as to the purpose of this council. President Maass asked that, after the minutes are received and reviewed, consideration as to whether or not the District wishes to -2- continue participating in the council be placed on the agenda. PUBLIC HEARING CONSIDERATION OF THE NEW DISTRICT COMPLEX AND POSSIBLE DIRECTION The public hearing to discuss the new District complex was opened by the Chairman at 7:30 P.M. Because of the complexity of the matter, he asked that questions and comments be made during the discussion rather than waiting until discussion is concluded. It was noted that the public hearing notice placed in the newspaper invited the public to tour the present facilities between 5:00 and 7 :00 P.M. this date; however , no members of the public expressed interest. Manager Holzmeister explained to the audience how the Ad Hoc Committee consisting of three members of the public and two TDPUD Directors determined a need for new facilities. In response to questions posed by Christine Wahn and Nancy Hopkin, he noted why it is not feasible to remodel the existing buildings. Mr. Holzmeister stated that the District could double in size in the next 20 years - there is inadequate space for the present employees and, as recommended by the Ad Hoc Committee , the building was planned with a second story that could be leased until needed by the PUD. Director Sutton asked if a study on employee/customer ratio had been done, and the Manager answered negatively. Director Sutton questioned whether or not space for vehicle parking was excessive, and the Manager noted some vehicles are larger than others (requiring more space) and that future needs were taken into consideration. She asked about engineering for snow load and provisions for snow unloading from the roof. The Architect, Dale Cox, assured her that all engineering standards and regulations for this area had been followed, and mentioned a local building with the same roof design that has had no problem. Director Sutton expressed concern over the use of rain gutters on the front of the building. Mr. Cox explained these are called "scuppers," and have internally installed heat tape which will effectively allow the run-off to drain. Location of the new building on the present site, traffic flow and storage of equipment were discussed. Questions posed by Karl Kuttel respecting these matters were answered. Mr. Holzmeister noted that the projected cost of the new complex is just under two million dollars; as with other District expenses, this will be paid by the rate payers. The Chairman asked whether or not construction of the new complex will effect rates, and the Manager stated many cost factors will effect the rates, but the new complex will not. It will be financed over the next 25 years at a low interest rate , probably 6 3/4%. Alan Miller of Miller and Schroeder Financial, Inc. explained the need for an investment banker and how the District can finance construction of the new complex by means of a certificate of participation lease/purchase plan. It will require formation of a non-profit corporation, which he estimated would take several weeks. The Manager advised that the contract may be awarded prior to finalizing the financing as there are funds on hand (that are not restricted). Director Sutton stated she does not know whether -3- ,'"-- these funds should be committed by the elected officials for this purpose. Responding to questions posed by Director Sutton, Mr. Cox advised that the square foot costs do not include the site improvements, that a mechanical engineer designed the heating system for the building, and that zoning on the parcel on which the present warehouse is located was changed to C-1. With respect to leasing the second floor of the new complex, Director Sutton advised that the School District had some trouble leasing their extra space. They could not lease to a commercial party. Mr. Cox noted that the County land use ordinance considers the PUD office/professional space , so there should be no problem. President Maass and Director Sutton discussed the Tahoe Truckee School District's space problems. Regarding Mr. VanLandingham's question as to long-term growth projections , Mr. Cox said that the District would probably double in size over the next 20 years. There being no further questions or comments from the public, Director Corbett moved, and Director Hamilton seconded, that the public hearing be closed at 9:06 P.M. All Directors, aye, by voice vote. SO MOVED, Mr. Holzmeister reviewed his analysis of financing options and stated that staff recommends financing construction of the new complex by means of a certificate of participation lease purchase plan, and that Miller and Schroeder Financial, Inc. be appointed to act as investment banker. He advised that the firm is highly recommended by the City of Riverside and Padre Dam Water District; that the firm is located in San Francisco, making it easy to get documents back and forth; and that they proposed a structure with the lowest debt service costs and the lowest issuance costs. After review of the proposed resolution, Director Corbett moved that the Board adopt Resolution No. 8602 appointing the firm of Miller and Schroeder Financial, Inc. to prepare issuance of certificates of participation for the new District complex; seconded by Director Hamilton. Responding to a question posed by Director Sutton, Mr. Miller advised that Miller and Schroeder Municipals has been in business since 1964; they recently changed their name to better reflect their services. ROLL CALL: all Directors, aye, with the exception of Director Sutton, who voted no. SO RESOLVED, The Manager advised that the firms of Brown, Wood , Ivey, Mitchell and Petty and Jones, Hall , Hill and White submitted proposals to act as bond counsel. He noted both firms are highly qualified, and recommended Brown, Wood as they quoted a lower price. Director Sutton asked if bond counsel the District used in the past was asked to submit a proposal, and Mr. Holzmeister replied in the negative , stating that the District has been dissatisfied with that firm's services. Director Sutton said that bond counsel verifies the tax exempt status and general condition of the District, development in the area, and stability of the District, and she would prefer using a firm who has previously done business with the PUD and other entities in the vicinity. -4- .•, Director Hamilton moved, and Director Corbett seconded, that the Board adopt Resolution No. 8603 appointing the law firm of Brown, Wood, Ivey, Mitchell and Petty bond counsel for preparation of issuance of certificates of participation for the new complex. ROLL CALL: Director Sutton, no; all other Directors, aye. SO RESOLVED. The Chairman noted that approximately ly of the plans remain to be completed. Mr. Cox said that the total package would be ready on the evening of March 20th. Counsel Phelps stated the Board does not have to have the documents before them, but can rely on approval of the uncompleted portions by the Architect, Attorney and appropriate staff. Director Maass ascertained from District Engineer Buckhouse, Manager Holzmeister and Counsel Phelps that the documents on hand are in order. Thereafter, Director Corbett moved that the Board adopt Ordinance 8602 approving plans, specifications and the expenditure and calling for proposals on construction of a new District complex, provided staff examines and approves the portion of the documents yet to be finished. The motion was seconded by Director Hamilton. ROLL CALL: Sutton, no; all other Directors , aye. SO ORDAINED. CONSIDERATION OF HIRSCHDALE WATER INPROVEMBNT PROJECT AND POSSIBLE DIRECTION The Chairman stated that two representatives of the State were present to explain requirements of the Safe Drinking Water Bond Act and the necessity to form an assessment district to receive the grant. Because of the lateness of hour they found it necessary to leave. The matter will be discussed later during the meeting. CONSIDERATION OF LANG/NAPOLITANO REQUEST FOR WAIVER OF FEE - POSSIBLE ACTION Mr. Holzmeister noted that the current policy of the District upon a second occurrence of a cut meter seal at any customer's premises is to charge a $25 service charge to reimburse the District for the costs of testing and resealing the meter. Mr. Holzmeister went on to say that when the District provides electric service to a customer, the District places its meter on the customer's building and then requires the customer to take proper care of that meter. If the meter simply wears out from years of service or fails because of a defect in its manufacture, the PUD replaces it. But if the meter is tampered with in any way, policy provides that the customer is responsible for the costs of setting it right. There is no accusation of theft or wrongdoing on the part of the customer. If sufficient evidence of theft of power is found, the Sheriff is notified and the responsible party is arrested and prosecuted. Counsel Phelps stated that after setting policy, the Board may make the decision as to whether certain things may be implemented at staff level. Director Sutton said she feels there must be recourse for the customer - perhaps a special appeal Board could be formed. The Chairman noted that all District policies may be appealed by coming to the Board as a whole. It is Mr. Lang's request that no service charge be levied against him for -5- testing and resealing his meter, and that he be allowed to install the specially constructed meter cover which he brought for inspection by staff. The Manager advised that the Lang/Napolitano seal was previously found cut in January of 1985. At that time it was secured with a locking meter ring and the fee was waived. He reviewed with the Board the history of electric use at this residence for the three months just prior to locking the meter and the corresponding months , one year later , and staff's recommendation that the current policy be retained and the Board not try to decide these matters on a case-by-case basis. After considering the matter, Director Corbett moved that the Board uphold staff's recommendation and deny the Lang/Napolitano request for waiver of the $25 charge; seconded by Director Hamilton. ROLL CALL: all Directors, aye, with the exception of Director Cooley who abstained from voting. SO MOVED. It was noted he may install the meter cover as long as the PUD has access to the key. CONSIDERATION OF HIRSCHDALE STATER IMPROVEMENT PROJECT AND POSSIBLE DIRECTION Manager Holzmeister briefly reviewed the events describing development of the Hirschdale project to date, and noted staff recommendations as follows: 1) Enter into an amended contract with Dan Cook for engineering services; 2) Cancel agreement with Sam Sperry for bond counsel services in formation of the assessment district; 3) Appoint Brown, Wood, Ivey, Mitchell and Petty to act as counsel in formation of the assessment district at a cost not to exceed $4,000; 4) Authorize Dan Cook to proceed with preparation of plans and contract documents; 5) Authorize counsel to proceed immediately with formation of the assessment district. After some discussion, Director Hamilton moved that the Board authorize the contract with Engineer Dan Cook, with Paragraph 2 being amended to read that compensation will be as shown in Mr. Cook's letter of proposal dated March 14, 1986; that Paragraph 3 pertaining to out-of-pocket expenses be deleted, and that the insurance limits shown in Paragraph 5 be changed from $5,0003,000 to $1 ,000,000; seconded by Director Corbett. In answer to Director Sutton's questions, the Manager noted he believes engineering fees (such as those stated in Mr. Cook's proposal) are proportional to the size of the project, and answered that the standard agreement form used in this instance was prepared by Counsel for all engineering projects. Director Sutton stated she has concern about the "boiler plate" agreement. She said she feels it is inappropriate for use with engineers, and should be tailored to the particular project. ROLL CALL vote on the motion to authorize the amended agreement with Cook Associates: all Directors, aye. SO MOVED. At this point in the meeting, Director Hamilton left. Manager Holzmeister advised that Dan Corrigan of the State was present to talk about why the assessment district is necessary, but had to return to Sacramento. Counsel Phelps noted that he talked with Mr. Corrigan, who -6- ?,.�., insists that the assessment district is the only way to get the grant f or the Hirschdale improvements. Director Sutton said she would like to know what law dictates this, and Counsel replied that there is no such law - the State department Mr. Corrigan represents is requiring what has worked for them in the past. Director Sutton said she is not satisfied that this is what the District should be doing, and will do everything she can to prevent it; she thinks the PUD will "miss the boat" because it takes so long to form an assessment district. Mr. Holzmeister noted that the grant will cover expenses for the engineer, bond counsel and formation of the assessment district. Director Cooley moved, and Director Corbett seconded, that the Board adopt Resolution No. 8604 appointing Wood, Brown, Ivey , Mitchell and Petty counsel to assist the District in formation of an assessment district at Hirschdale and ask them to proceed immediately. ROLL CALL: Hamilton, absent; all other Directors, aye. SO RESOLVED, CONSIDERATION OF AMENDING MEMORANDUM OF UNDERSTANDING TO CREATE POSITION OF MECHANIC In January of 1984, Mr. Holzmeister said, the Board formally adopted a job description for mechanic. He has met and conferred with the IBEW Union representative concerning terms and conditions of employment , and it is now necessary to establish a pay scale. Staff recommends that the position of mechanic be recognized as a bargaining unit position, that the pay scale be the same as that of a journeyman lineman, and that the MOU be amended to reflect the position at the same pay scale as journeyman lineman. Director Sutton read an ad which appeared in a Grass Valley newspaper for a "supervising mechanic" for the Nevada Irrigation District. The pay appeared lower than that of a journeyman lineman. She also asked if this could be a salaried position rather than an hourly one. The Manager noted this person would be a skilled laborer - more in tune with an hourly operator than a person implementing District policies. Director Sutton stated she would like some idea of where the Board is coming from with respect to this matter and a comparison of contract labor and salary. The Chairman directed that this item be put over to the next meeting agenda. CONSIDERATION OF APPROVING CONTRACT WITH D & C ROADSIDE SERVICE FOR VEHICLE MAINTENANCE With respect to the agreement with D & C Roadside Service, Mr. Holzmeister noted the only difference is the rate of pay between 8:00 P.M. and 8:00 A.M. He said the rates set forth are fair, the District will retain control over the scheduling of repairs and maintenance, the agreement is nonexclusive, the District provides parts, the agreement accommodates the need to provide routine inspections, the vendor indemnifies the District and maintains insurance, and the agreement can be canceled on short notice. -7- Counsel Phelps suggested that the standard attorney clause used in agreements with engineers be included in this contract. Thereafter, Director Corbett moved, and Director Cooley seconded , that the Board approve the agreement between the District and D & C Roadside Service for vehicle maintenance. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED. CONSIDERATION OF ACCEPTING FROM SOUTHERN PACIFIC RAILROAD A QUITCLAIM OF INTEREST IN A RIGHT--OF-STAY OVER A PUD PARCEL The Manager explained that the District owns a parcel of land on East River Street over which Southern Pacific Railroad has an easement. The easement continues past the PUD parcel and covers many other parcels , one of which is owned by Thomas Archer. Mr. Archer wanted the railroad to vacate its easement over his land and, in negotiating with Southern Pacific, it became clear to Mr. Archer that the railroad would be willing to vacate the entire easement. If the District wants the easement over its parcel vacated, the cost is $315. The railroad is charging $250 as an administrative fee; the escrow fee is $50; the recording fee is $15. Mr. Holzmeister noted that staff recommends approving vacation of the Southern Pacific Railroad easement over the PUD parcel and depositing $315 into the escrow account at Inter County Title. Director Sutton disclosed that she owns property in the same vicinity; however, this would have no effect on her transaction with Southern Pacific or be of any benefit to her. She stated she does not believe she is in conflict. Director Corbett moved that the District accept the land from Southern Pacific and deposit $315 into escrow at Inter County Title; seconded by Director Cooley. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED, ADJOURNMENT There being no further business before the Board, Director Corbett moved that the meeting be adjourned. Director Cooley seconded the motion. All Directors, aye, by voice vote. SO MOVED. at 10:44 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT P epared by: Susan M. Craig, Deputy District C k -8-