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HomeMy WebLinkAbout1986-05-05 Min - Board REGULAR MEETING May 5, 1986 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Maass at 7:05 P.M. in the TDPUD Board room. ROLL CALL: Directors Corbett, Hamilton, Sutton and Maass were present. Director Cooley was expected. EMPLOYEES PRESENT: Tom Buckhouse, Pete Silva, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Architect Dale Cox, Engineer Keith Sauers and Counsel John M. Phelps, Bond Counsel Constance Hornig and Financial Underwriter Alan Miller. OTHERS PRESENT: Among those present in the audience were C. R. VanLandinham, Karl Kuttel and Bill Roberts of Value Builders. APPROVAL OF MINUTES Director Sutton moved, and Director Hamilton seconded, that the minutes of February 26-March 2 and April 4 , 1986 be approved as written. All Directors , aye , by voice vote. SO MOVED. Director Sutton noted that she reviewed the tapes of the March 17th meeting and found the written draft to be prepared in accordance with what was said. Thereafter, she moved that the Secretary be directed to prepare those minutes in final form as drafted; seconded by Director Hamilton. All Directors, aye , by voice vote. SO MOVED. Regarding the minutes of April 7 , 1986 , (page 9 , second paragraph) Director Corbett noted the minutes state ". ..since one of his partners, Jim Porter, owns property.. ." He believes both Jim Porter and his brother own the subject property on South River Street. Director Sutton agreed with Mr. Corbett, but noted this was not what was said at the meeting. It was decided to clarify the matter by including this information in the minutes. Counsel Phelps provided written corrections to page 9, paragraph 2 , and page 11 , paragraph 5. Director Hamilton moved, and Director Corbett seconded, that the Secretary be directed to prepare the minutes of April 7 , 1986 in final form as corrected. All Directors, aye. SO MOVED. BILLS FOR APPROVAL AND STATEMENT OF GENERAL FUND The Manager advised the bill relating to removal of PCB's was in accordance with the contract which included a provision that the second half of the payment would be withheld until the PCB's reached their destination and the District could no longer be found liable. Director Sutton stated she would like to talk to the Manager concerning PCBs. -1- Questions were answered regarding purchase of survey markers, customer complaint forms and the employee flower fund which is a voluntary contribution of $1.00 per month and is deducted from the employees's pay check. Director Corbett moved, and Director Hamilton seconded, that the bills presented for consideration be approved for payment. All Directors , aye) by voice vote. SO MOVED. MANAGERS REPORT Manager Holzmeister had nothing to report at this time. PUBLIC INPUT There was no public input. CORRESPONDENCE East River Street Rezoning With respect to a letter from James Porter concerning rezoning of East River Street, Mr. Holzmeister stated that the District apparently owns property there, but he hasn't had a chance to research the matter yet. Regional Park Director Sutton inquired about the letter from the County Assessor's office regarding title to property at the Regional Park. Mr. Holzmeister noted that the title report shows the Truckee Sanitary District owning the land in question (1941 deed) , but lists the PUD's claim (1943 deed) for the land as an exception. The land, which was previously a dump site, was leased to the Truckee Donner Recreation and Park District in 1966 for 99 years. Mrs. Sutton stated she thinks that the Recreation District leases land from the PUD and TSD, and purchased the parcel from the PUD. She suggested the Manager contact Doc Tapia, who was Superintendent of the Recreation and Park District for many years , to assist in sorting out the ownership. Counsel suggested selling any interest the PUD may have in the property to TSD for $1. No direction was given. Director Cooley arrived at this point in the meeting - approximately 7:26 P.M. NEW DISTRICT COMPLEX - CONSIDERATION OF RECOMMENDATIONS AND POSSIBLE AWARD OF BID FOR CONSTRUCTION The Chairman explained that action taken at the 5:00 P.M. organizational meeting for the Truckee Donner Public Utility District Financing Corporation will be moot if other related items now to be considered are not approved. Mr. Holzmeister advised that the District received four bids on the new complex construction; all were over budget , the low bid being $2,849 ,000 from Value Builders of Squaw Valley. He indicated Bill Roberts (partner in -2- Value Builders) and the District's Architect have met several times to discuss change orders that would bring the bid to an amount under budget , and he recommended awarding the bid to Value Builders. Dale Cox provided the Directors with a list of items that could be deleted or postponed from the new complex project and discussed them with the Board. Regarding a question posed by the Chairman, Mr. Cox stated that his estimate was based on discussions with Reno contractors (none of whom bid the project). He also noted it's been a year since his estimate was put together, and the building climate has changed tremendously since then; prevailing wages have increased since December of 1985; the County required some road improvements; and the price of concrete has increased. The items on Mr. Cox's list were discussed further by the Board. Alan Miller briefly explained the annual debt service for a project costing $2.4 million as compared to $2.8 million, assuming that the District contributes $3001,000 towards construction costs in both instances. The possibility of leasing the second story of the new complex was discussed. Director Hamilton asked Mr. Cox to prepare a list of items and related costs that would be included on a change order and for items that would be postponed. The Chairman clarified this request by asking for an explanation of what's going to be changed and the savings; what's going to be eliminated and the savings; and what's going to be postponed and the time frame. Director Hamilton also asked for actual figures from the Financial Underwriter. President Maass directed that the material be distributed to the Board by May 15th. Karl Kuttel , present in the audience, stated that the new complex project will cost $6 million by the time it's paid for. He stated he believes a new building is needed, but thinks the matter should go to public vote. He went on to say the second floor is pure speculation since the District is not sure it can rent the space. Replying to a question posed by Director Sutton, Counsel Phelps stated that typically, in situations of this kind, the bid is awarded to the low bidder, then change orders are issued. However , change orders authorized at the time of award require a four-fifths vote of the Board. The Board , at its discretion, may determine, whether or not the contract has been substantially changed and requires rebidding. Responding to Director Sutton's question, Counsel Phelps stated that if the contract is awarded in an amount over what was authorized in the ordinance ($2.5 million) a new ordinance must be passed. APPROVAL OF TRUCKEE DONNER PUBLIC UTILITY DISTRICT FINANCING CORPORATION ARTICLES OF INCORPORATION, BY-LAWS AND APPOINTMENT OF BOARD OF DIRECTORS; APPROVAL OF BANK OF AMERICA AS TRUSTEE -3- Director Sutton said she believes there should be five members on the corporate Board for the Financing Corporation, and that each PUD Director should be allowed to choose someone they believe is capable to sit on that Board. President Maass stated that , previously, the Board chose three members of the community, Bob Jones, Fran Benoit and Marilyn Dedmon, to sit on an ad hoc committee formed to study the District's needs and make recommendations regarding the office and warehouse facilities. Mr. Holzmeister advised that those three individuals were selected as Directors on the Financing Corporation Board based on the PUD Board's motion indicating it wanted those people to remain involved in the project. Director Sutton stated she thought that was presumptuous , and went on to say one party might be in conflict if Bank of America is Trustee, as she is Manager of the local branch. Bond Counsel Hornig noted that it is not necessary to have the PUD' s permission to incorporate the Financing Corporation. She stated the articles of incorporation were filed about two weeks ago; the people were selected to that Board subject to the PUD Board's ratification. The Financing Corporation Board can be enlarged to five Directors rather than three. Various aspects of the incorporating documents were discussed. Director Sutton asked for a clarifying letter from Counsel Hornig regarding what has been done. She said she feels Bond Counsel has far exceeded the authority given, and action taken may invalidate the entire arrangement. CONSIDERATION OF RECOMMENDATION AND POSSIBLE AWARD OF BID ON BORE AND JACK CASING PROJECT ON HIGHWAY 267 AT SOUTH RIVER STREET District Engineer Keith Sauers was present to answer any questions on the bore and jack casing project , and stated he recommends award of the construction contract to Joe Suter. Mr. Suter's bid was in the amount of $14,700 - $9 ,200 less than the amount bid for the project last year. Director Hamilton moved, and Director Corbett seconded, that the contract for the bore and jack casing project on Highway 267 at South River Street be awarded to Joe Suter Construction in the amount of $14,700. ROLL CALL: all Directors , aye. SO MOVED. EXTENSION OF BID OPENING DATE FOR TREE TRIMMING PROJECT TO MAY 29, 1986 Manager Holzmeister advised that the District is required to get a special determination from the Department of Industrial Relations , Labor Division, as to whether or not prevailing wages must be paid for the tree trimming project. Most likely, it will be several weeks before that determination is received. Director Hamilton moved , and Director Corbett seconded , that the bid opening date for the tree trimming project be extended until 2:00 P.M. on Thursday, May 29 , 1986. ROLL CALL: all Directors, aye. SO MOVED. SENATE BILL 1535 - REVIEW AND POSSIBLE DIRECTION The Chairman stated he feels Senate Bill 1535 is not in the District's best interest. It allows all of the provisions of the Nevada County Groundwater Ordinance , and act--tally authorizes creation of a new special district by -4- Placer, Nevada and Sierra Counties. Such special district would be allowed to go into the water business. Director Sutton suggested the District contact Assembly Member Herger and Senator Doolittle and let them know that , although the bill is dated January, the District was not made aware of it until March. President Maass noted he would like to personally visit Herger and Doolittle along with the Manager to discuss the bill. So moved by Director Hamilton; seconded by Director Sutton. All Directors , aye , by voice vote. SO MOVED. Director Sutton stated she feels a letter should' be written; included in the letter should be a copy of correspondence from the Board of Supervisors which states they have not discussed this matter. Director Corbett moved, and Director Sutton seconded, that the District contact Jerry Jordan of CMUA and ask his assistance in defeating the bill. All Directors, aye , by voice vote. SO MOVED. Mr. Holzmeister stated he will be contacting other District's in the area who will be impacted by passage of the bill , and will keep the Board posted. CONSIDERATION OF DEVELOPMENT AGREEMENT - GEORGE GARDAI/PANNONIA RANCHOS District Electrical Engineer Tom Buckhouse reviewed the development agreement between the District and Mr. Gardai for a small line extension of primary underground to serve five lots in Pannonia Ranchos, Unit No. 2. Mr. Gardai asked that the liability insurance be reduced to $1 ,000,000 from $5 ,000,000 since the project will take only two or three days, it is on private property, and the road will be blocked off during construction. Mr. Holzmeister stated he feels $1 ,000,000 coverage provides the District with substantial protection. He indicated he would like the Board to consider backing off on high insurance limits for a number of small projects. The Chairman stated he thinks this should be decided on a case by case basis. Director Sutton asked that there be a written agreement that Mr. Gardai will close the road during construction. Mr. Gardai requested that he be allowed three months to pay the necessary fees as he has been permitted to do in the past. Counsel advised that the District can legally collect these fees; if they are not paid when due , the project will not be energized. Counsel noted that this agreement is similar to one done last summer. The District does not require a performance and payment bond, only a restoration deposit. After some discussion, Director Corbett moved that the Board approve the development agreement with George Gardai with a change in liability A40"11"11- insurance from $5 million to $1 million. Also, Mr. Gardai is to make a $1 ,500 down payment on the fees, with the balance to be paid in 90 days. This is an exception to the rule and shall not set any precedent. The -5- ,,•� motion was seconded by Director Hamilton, ROLL CALL: all Directors, aye. SO MOVED, CONSIDERATION OF DEVELOPMENT AGREEMENT — CALIFORNIA DEPARTMENT OF TRANSPORTATION Mr. Buckhouse explained to the Board how the line extension pay back for the CalTrans project is figured. Responding to Director Sutton's question as to whether the facilities are oversized in any manner for a potential user in the vicinity, Mr. Buckhouse said only the conduit is larger than required by the project. Director Sutton noted that the District has, for other projects , paid the difference between what a project actually requires and an upsized version which may be required in the future. Director Sutton moved, and Director Cooley seconded, that the Board approve the development agreement with CalTrans for the truck inspection station with the appropriate amount deducted from the fees for the oversized conduit required by the District for future development in the area. This shall be kept track of for five years for any development that may make use of the oversizing. ROLL CALL: all Directors , aye. SO MOVED. CONSIDERATION OF RESOLUTION FAVORING A YES VOTE ON PROPOSITION 51 Director Hamilton moved, and Director Corbett seconded, that the Board adopt Resolution No. 8611 supporting Proposition 51 and that copies be sent to the news media, CMUA, etc. ROLL CALL: all Directors , aye. SO RESOLVED. ADJOURNMENT Director Corbett moved that the meeting be adjourned, as there was no further business before the Board; seconded by Director Hamilton. SO MOVED by voice vote at 8:40 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By Jae A. Maass, President Prepared �•— Susan M. Craig, Deputy District Clerk smc 5/14/86 d6.8 -6-