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HomeMy WebLinkAbout1970-09-22 Min - Board TRUCKEE-DONNER PUBLIC UTILITY DISTRICT P. O. BOX 308 TRUCKEE, CALIFORNIA 95734 Telephone 587-38% SEPTEMBER 18, 19 70 THERE WILL BE A SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT HELD ON TUE SDAY, SEPTEMBER 22, 1970 AT 8:0 0 P.M. IN THE CONFERENCE ROOM OF THE DISTRICT. AGENDA: APPOINTMENT OF ATTORNEY JOERGER EASEMENT GEORGE CATTAN, MANAGER r SEPTEMBER 2 2, 19 70 The special meeting of the Truckee Donner Public Utility District met in the confer- ence room of the District at 8:00 P.M. The meeting was called to order by President Doyle. ROLL CALL: Doyle, Rose, Loehr, Stone, Moore. GUESTS PRESENT: Messrs. Dolley, Sutton and one identified guest. �..� EMPLOYEES PRESENT: Cattan, Paulus, Bliss. APPOINTMENT OF ATTORNEY - 1962 BEAVERS CONTRACT RE PONDEROSA PALISADES After the September 1S meeting at which time this subject was discussed at length, it was understood that there may be some discrepancy in the interpretation of the contract, that the Board should discuss the matter pub 1 i cly because of the difference of opinions as to how the original contract was written. Mr. Doyle felt we should follow through to a conclusion and have the problem reviewed by proper legal counsel because this matter may reflect upon $100,000 which the District cannot afford, that we definitely have a problem on that si e of the river and something has to be done about it and somebody has to pay for it. Mr. Doyle continued it is within our bounds to determine where the intent lies, what the contractural arrangements are, who has to pay for it. He further stated that at the last regular meeting he was badgered for no reason and had to countermand every proposal of Mr. Beaver's attorney, that the Board let him down. Mr. Doyle felt that the District engaged two attorneys to represent us and they did not say what needed to be said until it was too late. These are the reasons for the proposal tonight to change legal counsel in this particular matter and engage someone who can represent the District equitably and favorably. (At this time, Mr. Loehr disqualified himself because of conflict of interests.) Mr. Rose felt the attorneys rather than the Board let the Chairman down, that the Board members do not have legal minds. Mr. Rose felt the intent of the 1962 contract was defined in the second paragraph of a letter from Paul Chamberlain to the District r—F dated September 1S, 1961, a copy of which is attached and is part of these minutes. Mr. Rose mentioned at that time the District had had an unfortunate experience with Clements and was concerned with Sierra Pacific supplying our customers. Mr. Rose further stated the main intent of this agreement was to make sure we supply the water and power to the subdivision, not to give any special consideration or privileges to any one subdivision. Regarding the tank site on the hill, Mr. Rose stated the District traded approximately an equal portion of land for a roadway through District property to Beaver's subdivision. Mr. Doyle reiterated that the District traded a 60' easement to his property for 100,000 square feet on the hill. Mr. Moore felt the board members were lead to believe that the site on top of the hill was a gift, not a trade. Mr. Doyle proceeded to read a letter dated September 13, 1961 to Paul Chamberlain from Mr. Longo, a copy of which is attached and is part of these minutes. Discussion ensued as to who actually wrote the contract since all of the attorneys contacted by the District denied writing it. Mr. Cattan felt that the fall 1961 correspondence indicates that Paul Chamberlain was involved. Mr. Doyle felt the District is not liable for the expenditure of building this tank which will put the District in the red. We should not yield to private enterprise, that this contract should not be subjected upon the people of this community. Mr. Cattan felt the contract was sub- mitted to Paul Chamberlain for his comments but was prepared by Mr. Beaver's attorney. Mr. Moore mentioned that perhaps the tentative agreement mentioned in the 1961 letters was adopted as final. Mr. Stone also felt our attorneys could have shown more interest, that the tentative memorandum was. prepared by Beaver's attorney because only Mr. Beaver and he knew of plans for the adjoining forest service land, that Mr. Chamberlain had worthwhile suggestions to be incorporated into the final contract. Mr. Stone further stated he was surprised Mr. Chamberlain didn't support his original views at the last meeting, that the intent only was to get water and power only to Section 14 and 1S, that we must establish the intent through legal counsel or we will be setting g g g a prece- dent because now we have approved a water plan for Ponderosa Palisades West which has lots above the 6,000' level. Mr. Stone also felt the original intent of this agree- ment is to furnish land to which Mr. Beavers would have liked to have acquired (Sierra Meadows) and this is why a tank at the top of the hill would have been acceptable at that time, that we must clarify this contract obligations because the District has spent money in Ponderosa Palisades which is directly contrary to the intent of the contract. Mr. Doyle asked Mr. Stone if he felt the District has a certain obligation to the people in Ponderosa Palisades and Mr. Stone replied "definitely". Mr. Loehr September 22, 1970 Page 194 SEPT BIBER 22, 1970 - CONTINUED stated the only way this matter will be resolved is in the court and that he felt we should not get another attorney because the District has lived with Paul Cham- berlain through this matter and he felt Mr. Chamberlain will not let us down because he drew up the legal papers, but the Board signed the contract. 4 Mr. Rose mentioned the District had letters from Paul Chamberlain assuring us that Mr. Beavers should have been subject to all future resolutions as are other subdividers, and his statements in the letters are contrary to what he said at the last meeting. Mr. Rose felt Mr. Chamberlain let the entire Board down, not just the Chairman. Mr. Doyle felt the attorneys should have supported him. Mr. Moore felt Mr. Chamberlain was aware of the intent of the 1962 contract because of his 1961 correspondence, but he did not support the District, that the District f should engage another attorney to research this matter to interpret the intent of the contract. Mr. Cattan reiterated that Messrs. Chamberlain and Todd both had letters stating ! that the matter of the contract should be settled before approving Ponderosa Pali- sades Units 3 and 4. Mr. Rose mentioned that the District has to settle this matter or live with the contract Lentil 19 88. The Board's jeopardy lies upon this contract and $100,000. Mr. Doyle made reference to interest to a former resident water consulting engineer, that the complaintant has contacted Mr. Walters and indicated to him that this amount is due him; however, we have agreed in past meetings that this is not the case. Mr. Rose made a motion that the District engage Martin McDonough to review the correspondence, etc. and give the District his recommendations and advice. Mr. Cattan stated he had contacted Mr. McDonough who said he is still the District's attorney in special matters such as this Beaver's contract, that when he was engaged, it was on important matters, that he would be ready to help the District. Mr. Cattan feels Mr. McDonough is an expert on utility matters. At this point, Mr. Doyle polled each Board Member. f Rose: Felt he had stated his opinions previously. Loehr: Disqualified. � ! Stone: Agree that we have to retain counsel who will pursue this matter. No other course open to the District. Moore: Engage another attorney to protect the District now and in the future. Mr. Loehr mentioned that the District has had two attorneys' opinions already. Mr. Moore felt some of their information was misleading and was used to play on public sympathy (Gift of tank site land rather than a trade) . Mr. Cattan mentioned D Horman didn't recall the 1962 contract. Mr. Doyle stated that former Director an Y it is difficult to remember details after 8 years, that he had forgotten about the tank site vs. the road, that it will be our consumers who will have to pay for this, and this fact should be utmost in our minds. Mr. Moore felt we should prepare our- f selves with the truth of suit. Mr. Doyle reiterated that our legal counsel stated there is no basis for a suit. Mr. Moore felt this is only one attorney's opinion. Mr. Doyle mentioned there is a motion on the floor. Mr. Stone seconded Mr. Rose's previous motion. E ROLL CALL: Rose, aye; Loehr, abstain; Stone, aye; Moore, aye; Doyle, aye. 1 Motion carried. So ordered. INTEREST - BRIEN WALTERS Mr. Paulus stated he had received a phone call from Mr. Walters that the District ' interest. However Mr. Paulus felt there is no legal reason why we didn't pay the g should pay it. Mr. Paulus would like a recommendation from the Board regarding this interest, that the matter was tabled the last time it was discussed. Mr. I Doyle stated it is an insult that Mr. Walters ask for $500 after he was paid $20,000, that this Board is on record as having terminated the contract with Brien Walters and engaging Dan Cook; therefore, there is no further discussion. Mr. Paulus stated he would write a letter to Mr. Walters to this effect. Page 195 September 22, 1970 SEPTEMBER 22, 1970 - CONTINUED JOERGER EASEMENT - MARTIS CREEK RESERVOIR (Mr. Loehr is not disqualified in this matter.) The unsigned right of entry permit regarding the Joerger property was read into the minutes by Chairman Doyle. Mr. Cattan mentioned that Paul Chamberlain had reviewed the permit, and it was in order, but noted that negotiations with the US Corps of Engineers and the Joerger family are included, and that the compensa- tion for the easement is open. Mr. Cattan sent a copy of the permit to the Corps of Engineers, and Dave Marks gave his approval. A motion was made by Mr. Moore and seconded by Mr. Loehr that the Chairman and Clerk be authorized to sign right ht of entry permit. g ROLL CALL: Rose, aye; Loehr, aye; Stone, aye; Moore, aye; Doyle, aye. Motion carried. So ordered. The matter of having an attorney present at all meetings was discussed. Mr. Cattan mentioned a local attorney might be influenced by local conditions and people. Mr. Rose mentioned that one advantage to a local attorney was that he could attend all meetings. Mr. Doyle felt that legal counsel should be far removed with no political influence, that the Board is charged with the responsibility of making policy and must be impartial and not interfere with politics, that the Board must do right by the people. Mr. Rose felt all the Board members concurred. Mr. Stone stated he would like to express a vote of confidence in Mr. Chamberlain's work with the District. No further business to come before this Board, a motion was made by Mr. Moore and seconded by Mr. Rose that the meeting be adjourned. All ayes. Meeting adjourned at 9:18 PM. o PAUL A. DOYLE, PRESIDENT QTflE d CAROLYN BLI,36, REC RDI G SECRETY I September 22, 1970 Page 196