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HomeMy WebLinkAbout1971-02-16 Min - Board FEBRUARY 16, 1971 The meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Doyle at 7:30 P.M. in the conference room. ROLL CALL: Moore, present; Anderson, present; Stone, present; Loehr, present; Doyle, present. EMPLOYEES PRESENT: Cattan, Paulus, Bliss. GUESTS PRESENT: Messrs. Fred Damavandi (Lakeworld) , Robin Renner (Dart Industries, Inc.) and Ed Emery (Tahoe Truckee Agency) . NOMINATION OF VICE PRESIDENT Mr. Doyle stated a Vice President can be selected on the basis of seniority or by popular vote. A motion was made by Mr. Loehr and seconded by Mr. Stone that Bob Moore be nominated for Vice President and that the nominations be closed. All ayes. Mr. Moore is the new Vice President. MINUTES OF FEBRUARY 2 and 5, 19 71 The minutes of February 2 were approved as written with the following correction: "Mr. Doyle stated that in regard to Resolution 7104, that the resignation was ; accepted, and prior to the discussion of the nomination of Reuben Maki, he thought the next highest vote should be considered." Minutes of February 2, 1971 are so amended. The minutes of February 5 were approved as written with the following correction: "Mr. Doyle stated that in regard to Resolution 7104, that the resignation was accepted, and prior to the discussion of the nomination of Reuben Maki, he thought the next highest vote should be considered." ` The minutes of February 5 are so amended. BILLS FOR BOARD'S APPROVAL The bill for Southern Pacific is for a drawing for a crossing. No overtime during this period. It was suggested that the District pay for TV Cable service by the year. No further discussion, a motion was made by Mr. Stone and seconded by Mr. Loehr that the bills be paid as listed, a copy of which is part of these minutes. All ayes. Motion carried. So ordered. LAKEWORLD DEVELOPMENT COMPANY ACQUISITION BY DART INDUSTRIES CORP., LOS ANGELES i Since Lakeworld has been acquired by Dart Industries, it is mandatory for the contracts between the District and Lakeworld to be amended to include the parent company of Dart Industries, Inc. Mr. Doyle read Paragraph 18 of the contract referring to successors and assigns and,stated there is no reason for that consent not to be upheld. The comments from Attorney Chamberlain in this regard dated 2/8/71 and 2/11/71 were read, his recommendation being that the District consider an assignment with recourse (look to Dart for performance) or without recourse (look to both Lakeworld and Dart for performance) . Mr. Cattan prefers to continue working with Lakeworld. The board members generally agreed that the District should look to both Lakeworld and Dart for performance. Mr. Anderson felt the District should not relinquish any holdings with Lakeworld either verbal or written in a contract. The 1969 financial statement of Dart Industries was presented. Mr. Damavandi stated that the company was planning to start units on the Tahoe Northwoods development i the latter part of last year. Since then, Mr. Valley, who is the principle owner of Lakeworld Development Company, has sold his home-building interest to Singer Company. Because of this, they will be expanding their operation, and Mr. Valley could not be in two places at the same time. The other principle owner, Jack Kirby, sold = Lakeworld Development There are two parts to Lakeworld -- Lakeworld Development Company and Lakeworld Properties. Lakeworld Properties were sold to Dart. Since then, Dart has been interested in acquiring Tahoe Northwoods. In order for Dart to assume the obligations in Lakeworld's agreements with the District, Lakeworld has to get the District's consent to assign their agreements to Dart. Lakeworld j Development develops the land and Lakeworld Properties sells it. They have the same stockholders. Dart Industries Incorporated will take over Lakeworld's obligations. i February 16, 1971 Page 20 FEBRUARY 16, 19 71 - CONTINUED LAKEWORLD DEVELOPMENT COMPANY ACQUISITION BY DART INDUSTRIES INC. , LOS ANGELES-CONT. Mr. Chamberlain explained that the District has two assignments to consider: 1. Dart Industries in, Lakeworld out, constituting a "novation", or 2. ' Dart and Lakeworld. Mr. Chamberlain recommends that the District look to both. Dart and Lakeworld. Mr. Doyle stated it was the general agreement of the Board that the District look s to both for performance. Mr. Cattan agreed. Mr. Damavandi stated that Lakeworld Properties will be a subsidiary of Dart Industries, Inc. , that Lakeworld Develop- ment will remain an interest in the Valley company, is separate and will remain dormant for now. Mr. Robin Renner, Law Couns e 1 for Dart, stated he was pleased to have Fred Damavandi carry on his work for them in the Tahoe Northwoods project. Mr. Chamberlain explained all that is necessary is a simple form in which Lakeworld Development would assign these contracts to Dart Industries Inc. , that Dart accepts said contracts and agrees to perform according to the provisions of each agreement. The District would in turn give its consent for Lakeworld to assign to Dart Industries Inc. , and this does not constitute a novation. The Board members agreed. Mr. Renner requested formal action of the Board tonight, that the action need not be in writing. A motion was made by Mr. Moore that Resolution 7106 be adopted, whereby the District consents to the assignment of all agreements between Lakeworld and the District from Lakeworld to Dart Industries Incorporated, but without removing Lakeworld Develop- ment as the responsible par in the contract and this does not constitute a consent to any further assignment. r. Loehr seconded the motion. (Mr. Chamberlain will prepare the final resolution.) ROLL CALL: Moore, aye; Anderson, aye; Stone, aye; Loehr, aye; Doyle, aye. Motion carried. So ordered. Mr. Stone requested that the three agreements (power, water, water for lake/s) be itemized in the resolution. Mr. Doyle asked Mr. Damavandi what the present plans are for the Tahoe Northwoods and Prosser Lake developments now that Dart has come into the picture. Mr. Dama- vandi said as soon as all the transfer papers are finalized between their companies, that 2,000-2,500 lots will be recorded this year, the first unit in May 1971 at the latest. Regarding construction, the access and other roads; sales unit; main club house; ski facilities; and the initial phase of the main electrical and water systems from the access road all the way through the development are scheduled for this year. A 4-5 year construction program is anticipated because of the short season. Mr. Renner stated they intend to move as fast as possible after the finali- zation of the transaction with Lakeworld, that a firm schedule should be ready next week. Mr. Renner also stated that Dart is pleased to be involved in this project which they feel is the best investment they have been involved in. He stated he will be glad to answer any questions we may have in the future and welcomes any requests for additional information. INSURANCE FOR DISTRICT Mr. Ed Emery was present and explained to the Board Members that the insurance rates for the overall coverage for the District had doubled, and that his agency had difficulty obtaining coverage for this District because of losses in this general area with the present insurance carrier. Our insurance has been carried on a month to month basis since last November with the present carrier, who does not wish to "- insure us any longer. Mr. Emery stated he had researched the insurance carrier market thoroughly, and apparently these companies do not wish to insure a public utility district. He explained that the Manufacturer and Contractor coverage is the most expensive part of the insurance. Mr. Chamberlain mentioned that perhaps the District could arrange for a deductible to reduce the premium, or that the District could put the insurance up for bid or tax and get their own insurance with their own investigators. Mr. Stone suggested checking with CMUA. Mr. Paulus said he would check all possibilities as well as REA as suggested by Director Moore, and Mr. Emery will bind with Yosemite in the meantime. Page 21 February 16, 1971 FEBRUARY 16, 19 71 - CONTINUED MANAGER'S REPORT 1. The crew are installing neutral from Highway 89 to the lake. 2. The District received a letter from Attorney Wallace Stevens representing Sha Neva regarding the purported easement. Mr. Cattan feels this is a matter between attorneys. Mr. Doyle stated this matter would involve the Recreation District and that Shane negotiated with ex-Manager Longo 4-S years ago, but these negotiations were never formally known to the Board at that time. j Mr. Stone said there was an old service road for Pacific Telephone to service a line which went through utility district property and land Shane now owns. { 3. The District had an outage Saturday at the south end of the lake due to over- load, and the crew worked all night. The new substation will alleviate this problem. Sunday there was a major water break at the bridge by the river on Brockway Shortcut due to a loose coupling. 4. No SMUD tax this year as Bagley proposed. Mr. Moore inquired if the public utilities will be excused on underground installations. He feels underground power is more trouble free than overhead, but noted the county is still approving overhead installations. S. The most recent letter from Fred Damavandi (Lakeworld-Dart) was presented listing j the following schedule of recordations, Tahoe Northwoods: UNIT 1 April S 11 2 - 19 - 25 i 3 - May 3 - 9 4 - it17 - 23 6. Mention was made that Dave Irmer (General Amerman) supposedly gave $100,000 (divided between the county and the state) to avoid the lawsuit in Glenshire per Paul Chamberlain. 7. The Sierra Meadows tank was approved by the supervisors. No further business to come before this Board, a motion was made by Mr. Loehr and seconded by Mr. Stone that the meeting be adjourned. All ayes. Meeting adjourned at 10:1S P.M. i PAUL A. DO LE, PRE-MrOF THE BOARD CAROLYN BL , RECORDING SECRETARY j i February 16, 1971 Page 22