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HomeMy WebLinkAbout1987-03-16 Min - Board ,.. REGULAR MEETING Larch 16, 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 Unified School District Board Room. ROLL CALL: Directors Maass, Sutton and Corbett were present. Directors Cooley and Hamilton were absent. EMPLOYEES PRESENT: Debi Black, Joe Straub, Peter Holzmeister and Susan Macdonald. CONSULTANTS PRESENT: Counsel John Phelps, Architect Dale Cox and Consulting Engineer Keith Sauers. OTHERS PRESENT: Among those present in the audience were Corey Ray, Tim Lewellan, Desi Moss, Mo Gardiner and C. R. VanLandingham. APPROVAL OF MINUTES Director Sutton asked that the date of Deputy County Counsel Wellner's letter regarding Sierra Pacific's water resource plan and interim progress report (1/8/87) be included in the discussion of the February 17 , 1987 meeting correspondence item. The February 17 , 1987 draft minutes note that the bill from Sierra Welding Supply in the amount of $2 ,244.66 was for a welder , and go on to say Counsel noted there is now no bid requirement for items costing less than $10,000. Counsel asked that this statement be clarified. He said that at the February 17 meeting a Director questioned whether the District was required to go to bid on an article costing $2 ,244.66. He thinks it was Mr. Holzmeister who responded and stated that it was not necessary to go to bid unless the purchase price of the article exceeds $10,000. Counsel then stated that there had been some amendments to the bidding requirements , but he could not recall whether the bid limit was $4,000 or $10,000. He said he believes he stated that in any event the bid limit was higher than the price of the welder, so the District was not required to go to bid. It was decided that this discussion would be included in these minutes; a referencing note is to be inserted in the February 17 , 1987 minutes. Director Sutton asked that she be copied with the letter written by the District to the County listing costs related to the February 1986 storms and flooding. Director Sutton moved, and Director Maass seconded, that the minutes of February 17 , 1987 be placed in final form as corrected. All Directors, aye , by voice vote. SO MOVED. -► With respect to the minutes of March 2, 1987 , Director Sutton referred to the discussion about submitting an itemization of costs to the County for possible reimbursement under AB2536. The Board was informed that this -1- action takes a two-thirds vote since the item was not specifically listed on the agenda. Director Sutton noted only three Directors were present at that meeting to vote on the item. Counsel Phelps noted that the unanimous vote of the three Directors who were present is legal , and read Government Code Section 54954.2(b) for the Board's benefit. Director Maass moved, and Director Sutton seconded, that the minutes of March 2 , 1987 be placed in final form. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL It was clarified that the statement of general fund is only prepared for the first meeting of the month. Director Maass moved, and Director Sutton seconded, that the bills presented for consideration be approved for payment. All Directors, aye, by voice vote. SO MOVED, I�ANA�GER'S REPORT Accident involving Unit No. 1 At the March 2 Board meeting there was a question regarding a bill paid for repairs to Unit No. 1, Mr. Holzmeister explained that an accident occurred on October 13 in Tahoe Donner when a meter reader's truck rolled toward and hit a post supporting a porch on Skislope Way. Unit No. 1 , which is a 1979 Chevy Luv pick-up, sustained damage to the front end. The cost for repair was $1 ,000.20 , of which $500.20 will be reimbursed by the insurance company. Responding to Director Sutton's question, the Manager advised that accidents are discussed at employee safety meetings, and sometimes procedures are improved or changed as a result. Water quality report clarification Engineering Technician Black presented a memorandum concerning water quality - bacteriological analysis to the Board with their packets. It stated that the purpose of bacteriological analysis is to insure the safety of drinking water. An unprotected or improperly treated water supply may contain pathogenic microorganisms. Testing for specific disease producing organisms is very time consuming and requires special equipment. Instead of testing for specific pathogens, water is generally analyzed for the presence of the coliform bacteria - an indicator organism. The absence of coliform bacteria in a water supply is a good index of the degree of bacteriological safety. The coliform organism can be divided into fecal and non-fecal groups. Fecal coliform bacteria occur normally in ., the intestines of humans and warm blooded animals. They are discharged in human and animal waste. The presence of coliform, whether fecal or non-fecal , indicates the potential presence of pathogenic organisms. -2- �•. The District's water is analyzed by the water laboratory of Cranmer Engineering using the multiple tube fermentation method. This method has three stages; presumptive, confirmed and completed - each being more valid and specific. Unsatisfactory results are not necessarily proof that the system is contaminated; they do indicate the need to determine the extent and significance of the situation. The Board reviewed the bacteriological quality report beginning in July of 1986 and going through February of 1987. Director Sutton complimented Ms. Black on her thorough report and thanked her for pointing out the difference between fecal and non-fecal groups. Payments to DSI During the last Board meeting a question was raised regarding the invoice of Digital Systems, Inc. Mr. Holzmeister explained that the District pays a monthly license fee for the right to use DSI programs. In addition, the PUD is billed for other services that they provide. They bill for programming changes if they improve a program and the District wishes to have that improved version added to the system. They bill for primary customer contact when a problem occurs and their help is needed in backing out of the difficulty. Also, DSI bills for telephone and federal express charges relating to other services they provide. Glenshire/Devonshire Residents' meeting The Manager noted that he, John Corbett, Pat Sutton and Tom Buckhouse attended the Glenshire/Devonshire Residents' Association meeting on March 11. They made a presentation to the audience describing the District's desire to serve the portion of the community located within TDPUD boundaries. Sierra Pacific was represented and they also addressed the meeting. The residents who were present raised many concerns about the District's deposit policy, reliability in a storm, rates , connection fees and general system solvency. Mr. Holzmeister noted that public relations and discussion of policies will be necessary if the PUD intends to serve its portion of Glenshire and have satisfied customers. Director Maass said the District has two options, pursue the acquisition of the distribution facilities in Glenshire or move the boundaries back to exclude the area. He predicted that Donner Lake and Glenshire will eventually want water from the District. Clarification of mechanic position Mr. Holzmeister stated he would like some clarification from the Board concerning the mechanic position during closed session. Tahoe Forest Hospital correspondence -3- ..,, Director Maass said he feels the January 8, 1987 letter from Tahoe Forest Hospital was out of line and casts accusations against the District that could not be proven in a court of law as there are too many unanswered questions and cross-connections in the hospital. Mr. Holzmeister stated he will continue to follow up on this matter. PUBLIC INPUT There was no public input. CORRESPONDENCE Division of Labor Standards Enforcement letter of March 6, 1987 The Division of Labor wrote to Diversified Electrical Association stating that a complaint has been filed in their office alleging; non-payment of prevailing wage rates by the District on the new office and warehouse complex project. Mr. Holzmeister said the payroll information will be submitted to the Division of Labor and, if there has been a violation, the Division will work with Diversified to resolve the matter. The General Contractor has indicated to the Manager that Diversified has not neglected to pay prevailing wages. When the Division of Labor Standards Enforcement has made a determination, the Board is to be copied. Tahoe Forest Hospital letter of January 8, 1987 This correspondence was discussed earlier in the meeting. Cook & Associates letter of March 10, 1987 Mr. Holzmeister explained that Barry Tippin of Cook Associates has asked the District for permission to serve water through a 2-inch PVC injection line located within the boundaries of the PUD to help prevent septic conditions in the sewer line. This will be accomplished by mixing the water with chlorine and then injecting it into the main line. It will only be in use three to four months per year; this would be during hot summer months or during periods of low flow. Director Maass asked that the matter be placed on the next regular meeting agenda, and Director Sutton noted she feels the agreement should be between the District and the Truckee Sanitary District. COMMITTEE REPORTS Nevada County rater Advisory Committee President Corbett noted that at their last meeting the Nevada County Water Advisory Committee discussed a solution to the groundwater ordinance, although the matter was not on their agenda. He said it appears any of the seven Districts could control the groundwater, and the Committee will suggest an amended ordinance be prepared by the County. Director Sutton asked that the Board be copied with the proposed ordinance. NEW DISTRICT COMPLEX -- STATUS OF CONSTRUCTION - REVIEW OF PAY REQUESTS - -4- PROGRESS PAY APPLICATION NO. 10 - REQUISITION FOR RELEASE OF FUNDS - CONSIDERATION OF CHANGE ORDER - RESOLUTION APPROVING SPECIFICATIONS FOR FURNISHINGS AND ISSUING A CALL FOR BIDS - RESOLUTION APPROVING SPECIFICATIONS FOR HIGH PALLET RACKING AND UPRIGHT CANTILEVER PIPE AND BAR RACKS FOR THE NEW WAREHOUSE Manager Holzmeister reported that, during the past month, progress continued with installation of sheet rock, insulation, duct work, windows and electrical conduit. An attempt was made to remove the contaminated soil, but rain caused a delay. The work is now 62% complete. A change order in the amount of $15,540.72 was presented. The primary changes are the roof at $4,300 and installation of electrical outlets for the removable furniture partitions at a cost of $10,200. Mr. Holzmeister noted that the electrical outlets could not be located on plans until the furniture specifications had been finalized. Director Maass moved, and Director Sutton seconded, that the Board authorize the General Manager and Architect to seek other proposals for the electrical changes as soon as possible. ROLL CALL: Cooley and Hamilton, absent; all other Directors , aye. SO MOVED. Director Maass moved that the Board approve payment to Value Builders in the amount of $133,867 as recommended by the Architect. Director Sutton seconded the motion. ROLL CALL: Cooley and Hamilton, absent; Maass, aye; Sutton voted aye, however she stated she is voting under protest from the standpoint of her concern that there may be some problems later. She said she thought if there was a full Board, there would be enough votes in favor of this payment, so she would not hold it up by voting no. Corbett voted aye. SO MOVED. There was some discussion of the payment of prevailing wages and classification of workers. Director Maass moved that the Board authorize the semi-annual payment to Bank of America in the amount of $3,589.10. The motion was seconded by Director Sutton. ROLL CALL: Cooley and Hamilton, absent; all other Directors, aye. SO MOVED. Director Maass moved, and Director Sutton seconded, that the Board approve the payment to Eileen Sharp in the amount of $21436.20. ROLL CALL: Cooley and Hamilton, absent; all other Directors, aye. SO MOVED. Mr. Holzmeister noted he feels SEA is providing a very valuable on-site service for the District. Director Maass moved, and Director Sutton seconded, that the payment to SEA in the amount of $6,258.98 be approved. ROLL CALL: Cooley and Hamilton, absent; all other Directors, aye. SO MOVED. Director Maass moved that the Board authorize the request for release of funds from the Bank of America in the amount of $148 ,741. The motion was ►, seconded by Director Sutton. ROLL CALL: Cooley and Hamilton, absent; all other Directors, aye. SO MOVED, -5- � After review of the draft resolution approving specifications and calling for bids for furnishing the new District complex, Director Maass moved that it be adopted (Resolution No. 8708). Director Sutton seconded the motion. She stated she will vote yes on the motion since only three Directors are present and she doesn't want to stand in the way of the building having furnishings. She said she would. assume one of the other (absent) Directors would have voted in favor of this motion. Director Sutton went on to say she has real concerns about some of the furnishings that are going to be be obtained including the 16 or 20 tables for the Board room. ROLL CALL: Cooley and Hamilton, absent; all other Directors, aye. SO RESOLVED. After reviewing the draft resolution approving specifications and calling for bids on high pallet racking and pipe and bar racks for the new warehouse, and discussing the County requirements , Director Maass moved that the Board approve the resolution (No. 8709). Director Sutton seconded the motion. ROLL CALL: Cooley and Hamilton, absent; all other Directors, aye. SO RESOLVED. Joe Straub, Warehouseman, advised that the estimated cost for the racking is between $12,000 and $15,000. POSSIBLE DIRECTION RE CONFLICT OF INTEREST CODE With respect to Counsel Phelps' legal memorandum concerning the conflict of interest code, Director Sutton stated it does not say where the District's code is out of compliance. She asked that action on this matter be delayed in order that the Board may give it more thought. AIRPORT WELL PUMP IMPROVEMENT PROJECT - CONSIDERATION OF CONTRACT CHANGE ORDER N0. 1 - CONSIDERATION OF PERIODIC ESTIMATE FOR PARTIAL PAYMENT NOe 1 - RESOLUTION ACCEPTING THE PROJECT AND AUTHORIZING FILING OF THE NOTICE OF COMPLETION Consulting Engineer Keith Sauers noted that a four-fifths vote is required to approve the change order according to state law. He advised that the Airport Well Pump Improvement Project is complete and asked the Board to consider partial payment (less the amount of the change order). Director Maass moved, and Director Sutton seconded, that Partial Payment No. 1 less the change order amount and the ten percent retention ( $40,472) be approved. ROLL CALL: Cooley and Hamilton, absent; all other Directors, aye. SO MOVED, CONSIDERATION OF BROWN DEVELOPMENT AGREXMENT After hearing a !grief explanation of the terms proposed in the development agreement with the Brown Development Company and discussing Sierra Pacific's negative outlook on the PUD serving electricity in the fringe area, Director Maass moved that the agreement between Brown and the PUD be approved. The motion was seconded by Director Sutton. ROLL CALL: Cooley and Hamilton, absent; all other Directors, aye. SO MOVED. Director Maass asked that , in the future , a general map of the area involved be included with proposed development agreements. -6- AUTHORIZATION TO TRANSFER RESTRICTED FUNDS A request was made of the Board to transfer funds from the Dart $40 per lot restricted fund for costs incurred in upgrading the Innsbruck Pump Station, Soma Sierra Pump Station and Donner Trails Pump Station. Director Maass moved , and Director Sutton seconded, that a transfer from the $40 per lot restricted fund in the amount of $51 ,666.08 be approved. ROLL CALL: Cooley and Hamilton, absent; all other Directors, aye. SO MOVED, CONSIDERATION OF INSURANCE QUOTE FROM FRANK B. HALL & CO. Manager Holzmeister noted that the District's insurance package expires in early April. The errors and omissions insurance is through NRECA and is presently for $2,000,000. Now they will only be offering up to $1 ,000,000. The Board reviewed the quote from Frank B. Hall & Company and determined that it wishes to have only $100,000 excess employee dishonesty coverage rather than $400,000 coverage. Director Maass moved that . District renew its policy and approve payment in the amount of , less the amount of difference between $100,000 and $400,000 excess employee dishonesty coverage. ROLL CALL: Cooley and Hamilton, absent; all other Directors , aye. SO MOVED. FINANCE SUPERVISOR POSITION - DISCUSSION AND POSSIBLE ACTION Mr. Holzmeister explained how the finance supervisor applicants were narrowed down to three finalists, and reported that the interview committee completed its review. The committee is recommending that Paul Colburn be hired. He is currently employed as Chief Accountant and Treasurer of PUD No. 1 of Penderey County. Mr. Holzmeister noted that he would like to start Mr, Colburn at a salary of $46,000 (the approved range was $37 ,000 to $49 ,000) , and suggested that the District pay for documented moving expenses up to $3,000. Director Sutton stated she would not like to act on this matter tonight. She would like to review Mr. Colburn's application and consider where it will fit into the salary range. She also said she has a problem with the District paying moving expenses. The Chairman noted he would put this matter on a special meeting agenda for consideration. CLOSED SESSION The meeting was adjourned to closed session at 9:20 P.M. pursuant to Government Code 54957.6(b) in order to instruct the Manager with respect to negotiations with the Union. RETURN TO PUBLIC SESSION The Board returned to public session at 9:45 P.M. , and the Chairman noted that Mr. Holzmeister was given instructions regarding negotiations and the -7- �--. mechanic position. Also discussed during closed session were the qualifications of the finance supervisor. ADJOURNMKIRT There being no further business before the Board, Director Maass moved that the meeting be adjourned; seconded by Director Sutton. All Directors, aye, by voice vote. SO MOVED at 9:45 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT John L. Corbett, Presi�ent r P ie ared d Susan Ma do ald, Deputy District Clerk sm/d5a.7 -8-