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HomeMy WebLinkAbout1986-07-21 Min - Board REGULAR MEETING July 219 1986 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Maass at approximately 7:00 P.M. in the TDPUD Board room. ROLL CALL: Directors Cooley, Corbett, Sutton and Maass were present. Director Hamilton was out of town on business. CONSULTANTS PRESENT: Counsel John M. Phelps , Constance Hornig , Bond Attorney, and Alan Miller, Financial Consultant. EMPLOYEES PRESENT: Debi Black, Tom Buckhouse, Bruce Grow, Peter Holzmeister, Pete Silva, Joe Straub and Susan Craig OTHER PRESENT: Dick VanLandingham and Mo Gardner. Because guests were present in the audience for items on the agenda dealing with the new District complex, President Maass indicated he would take those matters out of order. NEW DISTRICT COMPLEX - REVIEW AND POSSIBLE AWARD OF CONSTRUCTION BID Mr. Holzmeister advised that five bids were received for construction of the new District complex ranging from a low of $2,406,928 to a high of $2,684,000. He noted that Dale Cox evaluated the low bid, from Value Builders, and found it to be in order. The Manager stated he met with Bill Roberts of Value to review the contract documents and make sure all the specifications are clearly understood. He recommended award to Value Builders. Director Corbett moved, and Director Cooley seconded, that the Board award the construction contract for the new complex to Value Builders in the amount of $2,406,928 on the condition that the financing package is also approved this date. ROLL CALL: Hamilton, absent; Sutton, no; all other Directors, aye. SO MOVED. FINANCING NEW DISTRICT COMPLEX - CONSIDERATION OF ORDINANCE APPOINTING BOARD OF DIRECTORS TO THE TDPUD FINANCING CORPORATION AND AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED DOCUMENTS Manager Holzmeister reviewed with the Board the various documents pertinent to formation of the financing corporation. By approval of the Lease/Purchase Agreement, the PUD agrees to lease the building and the non-profit corporation agrees to convey the building to the PUD when the bonds are paid off. The Trust Agreement appoints a trust bank to act as trustee of the funds. The trustee receives the proceeds of the bond sale , pays the costs of construction, receives rental payments from the PUD, pays �^ the principle and interest payments to the bond holder, and invests cash in -1- its possession. The trustee does all of these things with instructions from the PUD. By way of the Agency Agreement, the non-profit corporation designates the District as its agent for construction of the new complex. The Site Lease allows the District to lease the site of the new building to the non-profit corporation so that .the building, which is owned by the non-profit corporation, is sitting on land that the non-profit corporation has a right to build upon. The Contract of Purchase describes the obligations of Miller and Schroeder to purchase the bonds and deliver the cash to the PUD. The Official Statement is a description of the financing by which the PUD discloses information to prospective investors. The statement is used by Moody's to create the issue and is used by Miller and Schroeder to market the bonds to investors. Director Sutton asked questions about the Contract of Sale and provisions of a negotiated sale. She stated she did not think a negotiated sale could take place if the amount of the bonds is more than $500,000. Chairman Maass noted that he is relying upon Counsel to make sure the documents have been prepared in proper legal fashion. Director Corbett moved, and Director Cooley seconded, that the Board adopt Ordinance No. 8604 authorizing the execution and delivery of a Lease/Purchase Agreement, a Trust Agreement, an Agency Agreement, a Site Lease, a Contract of Purchase and an Official Statement; and certain other actions in connection therewith. ROLL CALL: Hamilton, absent; Sutton, no; Cooley, Corbett and Maass, aye. SO ORDAINED, Mr. Miller of Miller and Schroeder advised that the Purchase Agreement, which will include the correct figures, will be ready for final approval on July 30. It was decided to call a special meeting for 7:00 P.M. on that date. TDPUD FINANCING CORPORATION - CONSIDERATION AND POSSIBLE APPROVAL OF ARTICLES OF INCORPORATION AND BY-LAWS After review of the draft documents, Director Corbett moved, and Director Cooley seconded, that the Board adopt a resolution (No. 8627) approving the Articles of Incorporation and By-laws of the Truckee Donner Public Utility District Financing Corporation, ROLL CALL: Hamilton, absent; Sutton, no; Cooley, Corbett and Maass, aye. SO RESOLVED. After some discussion about the formation of the non-profit corporation, Director Sutton moved that the corporation be composed of five persons designated by the Board of Directors of the Truckee Donner PUD; seconded by Director Cooley (Resolution No. 8628 approving an amendment to the By-laws of the Truckee Donner PUD financing corporation). ROLL CALL: Hamilton, absent; Corbett, no; Cooley, Sutton and Maass, aye. SO RESOLVED. The Board indicated they have no problem with the three individuals already named in the Articles of Incorporation for the non-profit corporation - Bob Jones , Marilyn Dedmon and Frances Benoit. Director Sutton asked that -2- Thomas S. Archer be appointed; Director Corbett asked that Herbert Gaarder be appointed. Thereafter, Director Sutton moved that Jones , Dedmon, Benoit, Archer and Gaarder be named Directors for the non-profit corporation; seconded by Director Corbett. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED. PUBLIC HEARING - REVIEW AND POSSIBLE ADOPTION OF ORDINANCE ESTABLISHING FACILITIES AND CONNECTION FEES The public hearing to discuss facilities and connection fees was opened at 7:50 P.M. and Engineering Technician Black explained that the requirements of each new project are evaluated by the District Engineer. If it is feasible, given the location and size of the project , it is possible that the developer will be required to construct facilities in addition to on-site off-site facilities. In the interest of proper planning, the District may determine a combination of immediate facility and collection of fees for future expansion is needed. Ms. Black noted that the existing electric facilities fee is calculated based upon the capacity of the installed electrical panel. Fees collected are placed in a restricted fund and are to be used for future expansion and modification. Present policy allows the District the flexibility of using these fees for construction and, if necessary, requiring the developer to construct facilities. A facilities fee analysis of four other utilities as compared to the PUD's current and recommended fees was reviewed. The analysis took into consideration the size of service, maximum capacity, and equivalent residential units. After some discussion by the Board, Director Corbett moved that the hearing be closed; seconded by Director Cooley. SO MOVED by voice vote at 8:22 P.M. Director Corbett moved that the Board adopt Ordinance No. 8605 establishing connection and facilities fees, Payable Rate Schedule C-1. The motion was seconded by Director Sutton, Director Sutton asked that the wording in the schedule be changed to indicate that "fee" includes the meter reserve (the installed meter) , but the other Directors did not indicate their agreement to amend the wording. At Director Sutton's request, Manager Holzmeister indicated he would review the District's approach to water meters. ROLL CALL VOTE ON THE MOTION: Hamilton , absent; Cooley, no; all other Directors , aye. SO ORDAINED. Don Casler, a real estate developer, was not present during the public hearing and asked for some clarification regarding facilities fees and the proposed rates. He will visit the Manager during office hours for additional information. '^ APPROVAL OF MINUTES -3- Director Sutton advised that she would be providing wording to be included on Page 5 of the May 19, 1986 minutes and asked that they be put over. Director Corbett moved, and Director Cooley seconded, that the Secretary be directed to prepare the minutes of June 2, 1986 in final form as written. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL Director Cooley moved , and Director Corbett seconded, that the bills presented for consideration be approved for payment. All Directors, aye, by voice vote. SO MOVED. MANAGER'S REPORT Mr. Holzmeister advised that he has nothing other than specific agenda items to discuss. PUBLIC INPUT There was no public input. CORRESPONDENCE There was no correspondence discussed by the Board. APPROVAL OF LEASE FOR TEMPORARY OFFICE QUARTERS Counsel Phelps advised that he sees no problems with the lease. He indicated there may be a change in cost in 1987 as the liability insurance premium may go up and the District would share in its cost. Director Corbett moved, and Director Corbett seconded, that the Board approve the lease with Baywest Properties III for temporary office space. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED. REVIEW AND POSSIBLE AMENDMENT OF DISTRICT IMPOSED INSURANCE LIMITS FOR CONTRACTORS At Counsel Phelps' suggestion this matter was put over (since Director Hamilton, who raised many questions concerning insurance limits for contractors, was not present). CONSIDERATION OF RESOLUTION APPROVING PLANS, SPECIFICATIONS, ENVIRONMENTAL DOCUMENTS AND ISSUING A CALL FOR BIDS ON THE NORTHSIDE CHLORINATION PROJECT Manager Holzmeister stated that the District needs good chlorination equipment at the Northside Tank as there is a continuing problem with bacterial content in the water. The Health Department would like the PUD to have chlorination equipment in place at Northside as well as many other -4- locations in the system. Director Sutton noted that she feels the Directors are entitled to know when there is a bad test as soon as it appears; she said there has, in her opinion, been a radical change in the quality of the water during the past five years. She asked that staff provide a report having to do with regular flushing of the hydrants , the schedule for cleaning tanks, etc. The Chairman agreed that these items should be addressed, and asked that a timed agenda item be scheduled for the first meeting in August. He asked the Manager to advise Dave Toussaint of the Sierra Sun of the details and time. Director Corbett moved, and Director Cooley seconded, that the Board adopt Resolution No. 8623 approving the plans, specifications , environmental documents, and issuing a call for bids for the Northside Chlorination project. ROLL CALL: Hamilton, absent; Sutton , abstain; all other Directors, aye. SO RESOLVED. CONSIDERATION OF PORTER, SIMON, GRAHAM AND PHELPS' NOTICE OF HOURLY FEE INCREASE The July 11 , 1986 letter from Porter, Simon, Graham and Phelps noted that they have represented the District since January of 1981 at an hourly rate of $75. In 1982, the firm raised its standard hourly rate to $90, but the rate charged the District remained $75 per hour. The firm has now decided to raise their standard hourly rate to most clients to $115, and proposes to raise the hourly rate charged the PUD to $90. Director Corbett stated he feels the Board might be remiss if it doesn't solicit proposals from other firms, and Director Cooley asked how charges proposed by Counsel Phelps compare to Special Counsel McDonough. President Maass put the matter over for further discussion. ADJOURNMENT There being no further business before the Board, Director Corbett moved that the meeting be adjourned; seconded by Director Cooley. SO MOVED by voice vote at 9:47 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By CIlev J s A. Maass, fresident Prepared by Deputy District Clerk smc d5.13 -5-