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HomeMy WebLinkAbout1997-12-03 Min - Board REGULAR MEETING December 3, 1997 in accordance with District Code Section 2 08 010 the TDPUD minutes are action only minutes. AU Board meeSnas are recorded on audio tapes which are preserved perpetually and made available for listenina to any interested party upon their request. The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at 7:08 PM in the TDPUD Board Room by President Hemig. ROLL CALL: Directors Joe Aguera, Ron Hemig, Bob Jones, James Maass and Patricia Sutton were present. EMPLOYEES PRESENT.• Mary Chapman, Steve Hollabaugh, Joe Horvath, Peter Holzmeister, Kathy Neus, Bob Quinn, Ed Taylor and Scott Terrell. CONSULTANTS PRESENT. Engineering Consultant Keith Knibb; Attorneys Christina Bark and Steve Gross. OTHERS PRESENT..- There were no others present. PUBLIC INPUT The new Electrical Engineer, Joe Horvath, was introduced to the Board. ELECTION OF OFFICERS Director Jones nominated James Maass for President; the motion was seconded by Director Aguera. Nominations were closed and the Board voted unanimously in favor of James Maass. ROLL CALL: all Directors, aye. SO MOVED. Director Aguera nominated Ron Hemig for Vice President; Mr. Hemig declined the nomination. Director Sutton nominated Bob Jones for Vice President and moved that the Board cast a unanimous vote for Mr. Jones. The motion was seconded by Director Aguera. ROLL CALL: all Directors, aye. SO MOVED. PUBLIC HEARING The public hearing to discuss the draft 1998 budget was opened at 7:29 PM. There was no public present and Director Jones moved that the public hearing be closed, seconded by Director Aguera. SO MOVED. CONSIDERATION OF APPROVING THE BUDGET FOR 1998 AND POSSIBLE ADOPTION OF BUDGET OVERHEAD RATES When the draft budget was being prepared, a request was received from Bob Quinn to provide funding in the budget to purchase transformers for the upgrade of the Truckee Substation. The Manager agreed that upgrading the Truckee substation is a high priority. Additionally, the transformer failure in Tahoe Donner reminded staff that a strong substation flexibility needs to be maintained to guarantee the system's reliability. Funding for the Truckee substation transformers was not placed in the 1998 budget because it was believed that it would take a year to go through the bidding 12/3/97 Page 1 process, award the bid and get delivery. Funds were planned to be reflected in the 1999 budget. Bids have been opened and the delivery time quoted by the low bidder is only six months. Because of the second transformer failure in Tahoe Donner, staff is convinced that purchase of the new transformers should not be postponed. In order to maintain electric system reliability, staff believes four transformers for the Truckee substation and one new transformer for the Tahoe Donner substation should be purchased immediately. Revised budget pages were provided to the Board. Based on comments from the Directors the draft budget was modified as follows: NCPA expenses were moved from the Board's budget to the General Manager's budget; $30,000 was transferred from the Electric Rate Reserve Fund to help provide for an 11% credit on the kilowatt hour charge billed to customers; $50,000 was transferred from the Electric Rate Reserve Fund to pay for debt service for purchase of five new substation transformers. Manager Holzmeister reviewed with the Board the status of cash as of September 30, 1997; the budget document organization; water and electric budget overview and summary; expenses for the past 12 months; overhead rates. Copies of this information has been attached to these minutes for reference. Director Jones moved, and Director Hemig seconded, that the Board adopt Resolution No. 9724 approving the 1998 budget and budget overheads. ROLL CALL: all Directors, aye. SO RESOLVED. CONSIDERATION OF A RESOLUTION ESTABLISHING AN ELECTRIC BILLING CREDIT RELATING TO THE PURCHASE OF WHOLESALE POWER Manager Holzmeister reviewed the draft resolution establishing an interim 11%billing credit on the • kilowatt-hour and kilowatt demand charges within the District's electric rates. Director Jones moved, and Director Aguera seconded, that the Board adopt Resolution No. 9725 establishing an interim 11% billing credit on the kilowatt-hour and kilowatt demand charges within the District's electric rates, as modified, and that staff work out details of how it will show on the bill. ROLL CALL: all Directors, aye. SO RESOLVED. CONSIDERATION OF AN ENGINEERING SERVICES CONTRACT WITH SAUERS ENGINEERING RELATING TO REPLACEMENT OF THE DONNER CREEK PIPELINE The pipeline crossing between Deerfield Drive and the Alpine Motel was destroyed by the flooding last winter. Cold Creek flooded during the winter storms eroding the east bank and scouring the creek bed, which resulted in washing out a 250 foot section of the District's water main. Replacement of this creek crossing is considered eligible for disaster relief funding from FEMA and OES. The project is also eligible for hazard mitigation funding which will include a steel casing and erosion protection. The engineering estimate for this project is$129,000 and is considered a reimbursable cost under the disaster relief funding. Director Hemig moved that the Board approve the engineering agreement with Sauers Engineering for service regarding the Cold Creek pipeline replacement project in the amount of$14,300 for the fixed-fee tasks as defined in the attached proposal dated October 27, 1997. Further, that the Board approve the agreement with Sauers Engineering for service regarding the Cold Creek pipeline ® replacement project in the amount of$26,300 for the not-to-exceed tasks as defined in the attached proposal dated October 27, 1997. All Directors, aye. SO MOVED. 1213197 Page 2 CONSIDERATION OF A REPORT REGARDING WATER QUALITY AT THE GLENSHIRE DRIVE WELL;POSSIBLE ACTION There are two water quality problems at the Glenshire Drive Well. The well is bio-fouled with Fungi and the bacterium Yersinia. Both of these were introduced during drilling or the construction of the well The other water quality problem is the dissolved manganese and manganese oxides in the water. HSI GEOTRANS is recommending cleaning the well by brushing, removing the sediment and deposits, acid treatment for disinfection and high rate pumping for 72 hours to develop the well. The treatment process will cost $32,500; staff has expenditures of $26,234 in the testing and investigation of the water quality problems of the well. Director Hemig moved, and Director Aguera seconded, that the Board authorize staff to proceed with the treatment recommended by HIS GEO TRANS and approve the additional funding of the Glenshire well project in the amount of$58,734 funded from the facilities fees account. All Directors, aye. SO MOVED. CONSIDERATION OF A RESOLUTION APPROVING SPECIFICATIONS AND CONTRACT DOCUMENTS AND ISSUING A CALL FOR BIDS FOR REPLACEMENT OF CARPETING AT THE DISTRICT HEADQUARTERS BUILDING In January of 1997 the District headquarters building was flooded. All of the carpeting on the first floor is either flood damaged or worn out through heavy use. FEMA will pay a portion of the replacement cost. • Director Jones moved, and Director Hemig seconded, that the Board adopt Resolution No. 9726 approving specifications and contract documents and issuing a call for bids for replacement of carpeting at the District headquarters building. ROLL CALL: all Directors, aye. SO RESOLVED. DISCUSSION OF CHANGES IN THE BROWN ACT RELATING TO CONDUCTING PUBLIC MEETINGS OF THE DISTRICT BOARD OF DIRECTORS Attorney Gross presented and discussed with the Board amendments to the Brown Act recently approved by Governor Wilson which will take effect January 1, 1998. A summarization of the changes has been attached to these minutes for reference. CONSIDERATION OF POWER TRANSFORMER BIDS;POSSIBLE AWARD Bids for the purchase of new substation transformers for upgrading Truckee substation were opened on November 25. Five bids were presented for the four transformers; one was disqualified because no bid bond or deposit was submitted. The bids ranged from a high of $743,700 to a low of $485,306. Last week the Tahoe Donner substation experienced a transformer failure which required the total shut-down of that station. The District's ability to supply reliable, stable power at voltages that exceed minimum standards was severely impaired. For that reason, staff contacted the apparent low bidder to ascertain the availability and cost of an additional unit to be utilized as a spare in the Tahoe Donner station. Another unit can be added for$120,726.50, ® Director Jones moved, and Director Sutton seconded, that the Board award the bid for the purchase of four substation transformers to Western States Electric in the amount of$485,306. Further, that 12/3/97 Page 3 • staff be authorized to purchase an additional unit from Western States at a cost of$120,726.50. (Total price of rive units delivered to Truckee not-to-exceed$606,032.50.)Attorney Gross was of the opinion that, since the District has obtained a unit price and met current bidding requirements, it will not be necessary to declare an emergency or to go out to bid again for the additional unit. ROLL CALL: all Directors, aye. SO MOVED. CONSIDERATION OF EITHER CONTINUING OR TERMINATING THE EMERGENCY ACTION RELATING TO REPAIR OF THE TAHOE DONNER SUBSTATION TRANSFORMER The transformer that prompted the emergency action has been reinstalled and will be brought on line December 4. In order to assure that things go well, Director Aguera moved that the emergency action be continued until the next Board meeting. The motion was seconded by Director Hemig. All Directors, aye, by voice vote. SO MOVED. On November 26 an insulator failed a short distance out of Tahoe Donner substation causing fault current to surge through one of the permanent transformers in the station. As a result, one of the transformers failed resulting in a loss of power to customers in the Tahoe Donner area. Power was restored after switching to the Martis substation; however, customers in Tahoe Donner are experiencing low voltage conditions. Superintendent Quinn is very concerned as all three Tahoe Donner transformers were purchased 12 years ago and repairs take from 13 to 15 weeks. Director Sutton moved that the agenda be amended in accordance with Government Code Section 54954.2 to allow discussion and to take immediate action on this emergency situation. The motion was seconded by Director Aguera. Ali Directors, aye, by voice vote. SO MOVED. Staff ascertained that SMUD, PG&E, SPPCo, MiD and Roseville have portable substations. The • Board suggested looking into leasing one of them over the winter. Director Jones moved, and Director Sutton seconded, that an emergency be declared for the second transformer in the Tahoe Donner substation. All Directors, aye, by voice vote. SO MOVED. Director Jones moved, and Director Sutton seconded, that the Board direct staff to have the second Tahoe Donner transformer repaired without going to bid and that staff research options in the event there is a future emergency. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF THE MINUTES OF NOVEMBER 5, 1997,POSSIBLE APPROVAL It was moved and seconded that the minutes of November 5, 1997 be approved as presented. All Directors, aye, by voice vote. SO MOVED. MONTHLY TREASURER'S REPORT-APPROVAL OF THE MONTHLY REPORT-APPROVAL OF DISBURSEMENTS It was moved, seconded and passed unanimously that the Treasurer's monthly report be approved. All Directors, aye, by voice vote. SO MOVED. It was moved and seconded that the disbursements be approved. ROLL CALL: all Directors, aye, with the exception of Director Sutton who voted no. SO MOVED. CLOSED SESSION- CONFERENCE WiTH LEGAL COUNSEL, EXISTING LITIGATION, SIERRA PACIFIC POWER COMPANY IN FERC DOCKET NUMBERS ER97-3593;ER 97-3779 AND ER97- 4462, GOVERNMENT CODE SECTION 54956.9 12/3/97 Page 4 The Board adjourned to closed session at 9:07 PM. Director Sutton excused herself because of a possible conflict. RETURN TO PUBLIC SESSION The Board returned to public session at approximately 9:30 PM. No action was taken or direction given as a result of closed session. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 9:31 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT J A. Maass, President, Prepared by Susan M. Craig, Deputy District Clerk smc • 12l3l97 Page 5