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HomeMy WebLinkAbout1987-01-19 Min - Board REGULAR MEETING January 19, 1987 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Corbett at 7:07 P.M. in the Tahoe Truckee Airport Inn conference room. ROLL CALL: Directors Corbett, Hamilton, Maass and Sutton were present. Director Cooley was absent due to illness. EMPLOYEES PRESENT: Tom Buckhouse, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John Phelps, Ferris Gilkey and Larry Coupe of R. W. Beck and Associates. OTHERS PRESENT: Among those present in the audience was Dick VanLandingham. APPROVAL OF MINUTES There were no draft minutes yet prepared from the January 5 and 14 meetings as the Secretary was off work due to surgery. They should be ready for consideration at the next regular meeting. BILLS FOR APPROVAL Answering Director Hamilton's question, Mr. Holzmeister advised that the portion of the Sauers Engineering bill having to do with Waltman is reimbursible; charges relating to Proposition 55, Prosser system, the master plan, Harco corrosion report and the upgrade to Wells A & B are not reimbursible. In reply to Director Sutton's question about the bill submitted by Gordon Zimmerman of the University of Nevada for the supervisory training program, the Manager noted that Yvonne Wood (who did the employee training) and Dr. Zimmerman perform as individual consultants. Dr. Zimmerman's bill represents about one third of the total cost and finalizes the program. The D & C Roadside Service bill in the amount of $2,757.47 , Mr. Holzmeister reported, is for repair and maintenance to Units 11 , 12, 18 and 24. The major portion is for rebuilding the engine on Unit 12. Director Hamilton moved that the bills presented for consideration be approved for payment; seconded by Director Maass. All Directors, aye, by voice vote. SO MOVED. MANAGER'S REPORT Proposition 55 pre—application Manager Holzmeister noted that the pre-application for funding under Proposition 55 was hand-delivered to the appropriate state agency on January 14, 1987. A copy is available in the District office for review by interested Directors. -1- Water quality During December, 53 water samples were divided into 265 tubes and tested for coliform. There was no coliform present. Mr. Holzmeister said October, November and December, and possibly August and September, were perfect months. Director Maass suggested advising the public via the Sierra Sun. SPPCo water plan progress report The Manager reported he has obtained a copy of the five volume interim progress report prepared by Sierra Pacific on their water resource plan. They still show no plans to use Martis Valley groundwater. Other items of significance included in the report are the fact that Martis Lake does not hold water and to solve the problem would cost four to twelve million dollars, and that SPPCo is taking a serious look at utilizing storage at Donner Lake differently. Copies of pertinent pages were provided to the Directors in their packets. Cathodic protection A memo concerning cathodic protection was provided as an attachment to the written Manager's report. Mr. Holzmeister noted that the revised report from Harco has finally been received. It concluded that installing cathodic protection on the District's water system is not cost justified at this time. The management audit prepared by the Harvey Rose Accountancy Corporation was very critical of the PUD for not installing cathodic protection on the water system. The Grand Jury relied on this audit to issue a critical report on the District. Mr. Holzmeister recommended clarifying the record. The Board requested that the Manager prepare a draft letter to the Nevada County Grand Jury for review by the Board at the next regular meeting. Director Maass mentioned a letter written by him previously to the Grand Jury which stated he was not impressed with the Rose audit. He asked the Manager to review a copy prior to preparing his letter. Hydrant flushing Mr. Holzmeister noted that the water crew has exposed approximately 40 fire hydrants during the past two weeks. Hydrants along Pinnacle Loop have been flushed and no problems with icing roads have been encountered. Recently, the crew has been spending a lot of time answering calls about frozen pipes; however, most problems are on the customer side of the service. San Sperry letter (FuRA loan covenants) President Corbett recently wrote to Bond Counsel Sperry respecting correction of certain FmHA loan covenants. He asked for a response by December 17 , 1986; as yet, no answer has been received. After discussion, Director Maass moved that the Board direct Counsel Phelps to call Mr. Sperry. If a positive response is not received within a -2- . specified amount of time, Mr. Phelps is to provide information to the Board relative to filing a malpractice suit. MOTION FAILED due to lack of a second. The Board briefly discussed new provisions of the Brown Act which require all items voted upon to be specifically listed on the agenda. A suggestion was made to list each item included in the Manager's report on future agendas. After more discussion, the Board agreed to place resolution of the FmHA loan covenant matter on the February 2 agenda and invite Mr. Sperry to attend the meeting. Computer proposals Mr. Holzmeister reported that he and the Office Manager are in the process of securing proposals from consultants interested in evaluating the District's data processing problem. CMUA is also assisting in locating prospects. He hopes to have the proposals for Board consideration in February. Sassarini request The Manager noted he hopes to have something for the Board to consider pertaining to Mr. Sassarini's request in February. Finance Supervisor applications The District received 21 applications for the finance supervisor position, and sixteen appear to have the basic qualifications. Mr. Holzmeister said he intends to correspond with those 16 applicants requesting specific information that will allow a small group to be selected for interview. He noted he will keep the Board posted. Cross connection control ordinance Manager Holzmeister advised that the Water Committee asked staff to develop a draft cross connection control ordinance for consideration by the Board. Staff will recast the program suggested by the State Department of Health Services into ordinance form for review by the Board at the next regular meeting. Water and electric rate increase Director Sutton questioned the validity of imposing the rate increase with the January billing cycle since it is for power and water use in December. She stated she thought perhaps the increase should go into effect on February 1 , starting with January 1 use. Counsel Phelps noted that he briefly researched the matter and found nothing in the Public Utilities Code to guide the District in this instance. He also contacted Martin McDonough who had no knowledge of a governing law. Mr. Phelps said the rate ordinances were adopted December 1 , 1986 and effective 30 days later. The 30 day period is to allow the -3- -, public to protest the action prior to implementation. There was no protest. Director Maass asked if the District is still required to increase rates by ordinance. After some discussion, Counsel Phelps said he would check into this further and report at the February 2 meeting. PUBLIC INPUT There was no public input. C0RRESPONDENCE Mr. Holzmeister noted he would provide copies of a letter from Sierra Pacific to the Board members during closed session. COMMITTEE REPORT Electric Committee It was mentioned that the Electric Committee met on January 7 to discuss the status of the Boca hydroelectric plant, Stampede transmission line, NCPA, progress on negotiating transmission from Sierra Pacific and acquisition of SPPCo distribution facilities. A special meeting was held concerning acquisition of SPPCo facilities , and other items will be discussed under New Business. DISCUSSION OF HAVING R. W. BECK PREPARE A REPORT ON THE ESTIMATED COST OF ACQUIRING SPPCo. FACILITIES, THE COST OF CONNECTING THESE FACILITIES TO THE DISTRICT SYSTEM, THE MEETHOD OF FINANCING AND OTHER PERTINENT CONSIDERATIONS RELATING TO PROVIDING SERVICE TO GLENSHIRE CUSTOMERS IN THE TDPUD, AS WELL AS OTHER TDPUD TERRITORY PRESENTLY SERVED BY SPPCo Ferris Gilkey and Larry Coupe of R. W. Beck were present to discuss acquisition of distribution facilities owned by Sierra Pacific but located within the District's boundaries. Mr. Holzmeister advised that (pursuant to Resolution No. 8701 adopted on January 14) Sierra Pacific was notified that the District wishes to exercise its option to purchase the facilities described in Section VI of the 1967 Electric Service Agreement , and asking to be advised of the price, terms and delivery date for the facilities. He noted that SPPCo has written and stated they do not intend to cooperate with the District's request. The acquisition and methods of financing the purchase were discussed. The Board indicated it's desire to have the assistance of R. W. Beck and Associates in pulling this information together. Ferris Gilkey said figuring the cost of acquiring the facilities is going to be difficult and, if it's possible to obtain the depreciated cost and an inventory from Sierra Pacific, it will make the cost charged by Beck to the District much less. Af ter some discussion, the Board requested that Mr. Gilkey provide a cost estimate for assisting the District in this matter and setting forth a -4- �., generalized scope of the services. CONSIDERATION OF A REPORT FROM R. W. BECK CONCERNING THE FEASIBILITY OF CONSTRUCTING THE BOCA HYDROELECTRIC PLANT Beck and Associates has reported on the feasibility of constructing hydroelectric facilities at Boca Dam. Mr. Holzmeister stated that, if it is the Board's intent to construct the plant , construction must be under way by May of 1987. (Being "under construction" means issuing a contract to acquire major equipment for the project.) In order to meet the May deadline, the Board should make a decision concerning the design engineering at the next regular meeting. Mr. Coupe of Beck and Associates showed slides of the two 50' diameter pipes, valve house and two needle valves; access to the Boca project site; Byron Jackson TKW turbines which were designed specifically for small hydro projects; a horizontal unit that could be used; the proposed site plan; three alternate transmission lines. He then presented the following for explanation and Board review - a summary of cash flow projections for the Boca project together with bond size calculations and cash flow projections based upon those cost estimates , alternate construction cost estimates for both a 4-unit and 3-unit 15H TKW powerhouse, and the license application arrangements and suggested changes. He advised that the project cost estimate includes a distribution tape line from Boca to Alternative 3 of the Stampede line study. If Boca generation must be transmitted directly to the District system, some additional costs will be incurred. Questions posed by the Board were answered by Mssrs. Coupe and Gilkey. After some discussion, Director Maass moved, and Director Hamilton seconded, that Beck spell out in a flow chart the terms of the license, financing, design engineering and equipment. All Directors, aye, by voice vote. SO MOVED. The flow chart is to be considered at the February 2 meeting. Director Sutton asked if there is an advantage of revenue bonds rather than some other form of creative financing. STATUS REPORT ON NEW BUILDING Mr. Holzmeister reported that weather hampered progress on the new complex during the past month. Framing continues, although at a slower pace, and the roof will be on in about ten working days. Construction is approximately 50% complete. Architect Dale Cox was present and requested that the Board consider Change Order No. 4 increasing the contract by $3,134. He is requesting a door at the east end of the central hallway be added, locks keyed as from factory be supplied in lieu of construction keying specified, addition of a floor sink at the boiler room to provide drain for pressure relief valves , magnetic starters for exhaust fans , and a change in door hardware. The Board questioned the Contractor's margin of $409 listed on the change order and Mr. Cox advised this is 15% of the five items listed. -5- Mr. Holzmeister explained that he holds a job meeting each Tuesday at the construction site. Status of the building and proposed changes are discussed at this time with the contractor and architect - only those suggestions approved by the architect and Mr. Holzmeister are presented to the Board for consideration. After some discussion and the determination that the certified payroll had been received and other documents were in order, Director Maass moved that the Board authorize payment to Value Builders in the amount of $195,023; Dale Cox in the amount of $6,137.64; and SEA in the amount of $988.69; seconded by Director Hamilton. ROLL CALL: Cooley, absent; Sutton, no; all other Directors, aye. SO MOVED. Director Maass moved, and Director Hamilton seconded, that the requisition for release of project funds from the Bank of America in the amount of $216,692 be approved. ROLL CALL: Cooley, absent; Sutton, no; all other Directors, aye. SO MOVED, Director Maass moved that Contract Change Order No. 4 in the amount of $3 ,134 be approved. MOTION DIED for lack of a second. President Corbett directed that this matter be placed on the next meeting agenda for reconsideration. CONSIDERATION OF REVISED PROPOSAL FROM ARTHUR ANDERSEN Arthur Andersen & Company revised their proposal of December 1 to include a commitment that a preliminary draft audit report will be made available to each Director by May 15, 1987. After some discussion, Director Maass moved, and Director Hamilton seconded, that the Board approve Resolution No. 8704 designating Arthur Andersen & Company auditors for the 1986 tax year for the Water Department. ROLL CALL: Cooley, absent; all other Directors, aye. SO RESOLVED. Director Maass moved , and Director Hamilton seconded, that the Board adopt Resolution No. 8705 designating Arthur Andersen & Company auditors for the 1986 tax year for the Electric Department. ROLL CALL: Cooley, absent; all other Directors , aye. SO RESOLVED. CONSIDERATION OF LETTER FROM THE WORKS CLARIFYING SCOPE OF SERVICES FOR CONSULTING CONTRACT FOR FURNISHING NEW BUILDING Manager Holzmeister provided a letter from Eileen Sharp of The Works clarifying the scope of services for her work on preparing specifications for furnishing the new building. She has eliminated reference to art work, stated she will monitor installation and provide final inspection, stated the kind of travel she anticipates is required, and stated that she does not plan on talking to any consultants except Dale Cox and possibly an expert on audio--visual equipment for the Board room. After some discussion, the Board seemed to agree that selection of audio-visual equipment could be handled internally by District personnel. CONSIDERATION OF PROPOSALS FROM REAL ESTATE AGENTS TO SELL THE 1.9 ACRES OF LAND AT HIGA'HAY 89 AND DONNEER PASS ROAD _6_ ., On January 12, 1986 Mr. Holzmeister opened sealed proposals from six agents Interested in assisting the District sell the 1.9 acres. Their fees ranged from 6% to 10%. The next step is to select an agent, and he suggested the Board may want to form a committee to interview several of the agents and make a recommendation to the Board. Counsel Phelps said the District is not required to follow the bid process in selecting a consultant, and didn't think there would be anything illegal about selecting one of the proposals then sitting down and negotiating with the agent. Director Maass moved that the Board authorize the Manager to get together with Bob Jones of Boice Realty (who submitted the 6% proposal) and discuss the terms of a listing. MOTION DIED for lack of a second. There was some question as to whether or not there would be a conflict of interest with Bob Jones handling the sale of the 1.9 acres since he is the Board President of the District's non-profit corporation. Counsel Phelps noted that he does not think there would be a conflict since the TDPUD Board gives direction to the non-profit corporation and he would not be participating in a decision in which he or the financing corporation would benefit. After some discussion, the proposal from Remcor Real Estate was eliminated; they proposed a 10% commission and requested some payment up-front. Director Maass moved, and Director Hamilton seconded, that the Manager be directed to interview and negotiate with t"he dive Truckee firms making proposals - Tahoe Truckee Realty, North Sierra Investment Properties, Boice Realty, Don Casler and Fraser and Fraser - and bring a recommendation back to the Board. It was clarified that if Directors Cooley and Maass wish to participate on a committee involved in the interviews they have the Board's approval. All Directors, aye, by voice vote. SO MOVED. DISCUSSION OF MEETING PLACE AND MEETING DAYS FOR BOARD OF DIRECTORS It was noted that the larger conference room at the Tahoe Truckee Airport Inn will be available soon. Director Sutton stated she objects to the fee charged by the Inn for use of the room and asked if other possibilities had been investigated. After some discussion, it was decided that the Manager should talk with the School District about using t%ei_r_ room again since it is conveniently located. Heating the room during the meeting would be a condition of use. The Board did not consider changing the date of the regular meetings. CONSIDERATION OF A CLAIM FOR DAMAGES SUBMITTED BY THOMAS 0. FUNK This matter was put over for discussion during closed session. DISCUSSION OF ACQUIRING A FACSIMILE NACHINK FOR DISTRICT USE Director Hamilton advised the Board that a Xerox facsimile machine may currently be purchased at Costco for $1 ,500 - a $1 ,000 savings over the -7- normal price. Advantages of having the machine were discussed and , thereafter, Director Hamilton moved that the Manager be authorized to make the purchase; seconded by Director Maass, All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF A CLAIM FOR DAMAGES SUBMITTED BY TH014AS O. FUNK Director Maass moved, and Director Hamilton seconded, that the claim of Thomas 0. Funk be denied and submitted to the District's insurance company. ROLL CALL: Cooley, absent; all other Directors, aye. SO MOVED. CLOSED SESSION Counsel Phelps advised that closed session would be conducted pursuant to Government Code Section 54956.9(b)l , pending litigation, and Section 54956.9(a) , Application No. 86-03-007 before the PUC. RETURI�i TO PUBLIC SESSION There was no action taken following closed session. ADJOURNMENT After motion duly made, seconded and passed unanimously, the meeting was adjourned at 10:07 P.M. TRUCK E DgNNER PUBLIC UTILITY DISTRICT By , JV L. CorbettZ&=� President Prepared by �c Susan M. Craig, Deputy District Cl smc/d5b.4 -8-