HomeMy WebLinkAbout1971-08-17 Min - Board TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
P. O. BOX 30B
TRUCKEE, CALIFORNIA 95734
Telephone 587-3896
AGENDA
BOARD OF DIRECTORS
AUGUST 17, 1971 - 7:30 P.M.
1. Roll Call
2. Minutes of August 3, 1971 (reg) and 8/5/71 (spec.)
3. Bills for Board's Approval
4. Pension Plan, Mr. Jim Bunnell, New England Life
S. Distribution Transformer Bid Award
6. Bid Opening, Lot 9, Lakeview Sub. , Donner Lake
7. Recreation District, 4.5 Acres, Brockway/Meadow Park
8. Pension P 1 an, Mr. Wayne Richardson,, Executive/Employee Benefit Plans
9. Resolution 7109, Surplus Land, 120 Acres adjacent to Lakeworld
10. Olympic Heights., Unit 3
11. Facilities, Tahoe Donner
12. Substation
13. Personnel 1972
14. Resolution 7117, Union Contract
15. Resolution 7108, Draft, Water Supply to Condominiums, etc.
16. Manager s Report
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AUGUST 17, 1971
The regular 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, absent; Loehr, present;
Doyle, present.
GUESTS PRESENT: Mr. & Mrs. Jim Bunnell; Ms. Jean Sollen, Sierra Sun; John Bliss.
EMPLOYEES PRESENT: Cattan, Grow, Bliss.
No errors, omissions or corrections, the minutes of the regular meeting of August 3,
f the special meeting of August 5, 1971 were approved as written.
19 71 and o p g �
BILLS FOR BOARD'S APPROVAL
Mr. Moore questioned the price of concrete from Twin States stating that he was
able to secure a price of $21 (6 sack) rather than the $26 (6sack) the District paid.
Mr. Cattan said he could only contact this company, that the other quotes were $28.
The overtime was attributed to the formwork on Saturdays at the Donner Lake Substation.
The bill for Valley Engineers is for underground work at Donner State Park. No
further discussion, a motion was made by Mr. Loehr and seconded by Mr. Moore that
the bills be paid as listed, a copy of which is part of these minutes.
` (Mr. Stone arrived at 7:40 P.M.)
` ROLL CALL: Moore, aye; Anderson, aye; Stone, aye; Loehr, aye; Doyle, aye. So ordered.
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MR. JIM BUNNELL, NEW ENGLAND LIFE, PENSION PLAN
Mr. Bunnell is a broker representing many companies and will present pension plans
from both Bankers Life and Travelers. The first plan is a combination insurance
and investment plan with a death benefit and cash values combined with investment
p a pension,ension, which can be drawn out at retirement in an annuity in cash or
monthly payments. Mr. Bunnell feels a better plan would be a "Deposit Administrative
Plan" where one deposits money and the company administers it. He stated the expenses
are heavy in a combination plan, that permanent life insurance has high commissions,
but 4 1/2% - 5% can be realized on investment money. In the Deposit Administrative
plan, 100% of the money goes to investment with a guaranteed 7 1/2% interest.
Mr. Bunnell emphasized that this interest factor is very important. Health, insurance
and disability can be tied in with any pension plan. Recommendations are that eligi-
bility can be tied in with any pension plan. Recommendations are that eligibility
be 1 year with age 25 but not over 56. The pension plan is based on 40% of the average
salary for the last 5 years plus social security. Employee contributions are flexible,
but generally an employee contributes 3% but not more than 6%. If an employee termi
hates before retirement, this pension plan acts as a savings plan. The death benefit
is 50 X proposed pension amount. Costs are figured in 4 1/2% with 7% guaranteed for
2 years and 6 1/2% for 3 years. This plan will pay whatever fund that this goes into
is earning, that they have always been able to pay in excess of guarantees. The cost
is determined as if payments were being made the employee would have become eligible
had the plan been in effect. For a 40% pension, the normal cost is based on a
$103,000 payroll for 10 employees or $8,887/year. If the employee contrib utes, this
defrays the district's cost accordingly. The maximum cost is $37,960 which can be
amortized out or paid interest on.
The idea of a pension plan is flexibility. The
District can increase, decrease or skip payments. High interest holds cost to a
minimum. Association plans are available but are inflexible. Flexible plans give
4 local control. Mr. Bunnell recommends an investment plan. Mr. Doyle thanked
Mr. Bunnell for his presentation and said the District will give it due consideration.
DISTRIBUTION TRANSFORMER BID AWARD
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The bids were opened at the August 3 meeting and taken under advisement by the Manager
at the direction of the Board. Mr. Cattan recommends the bid be awarded to the lowest
bidder as the specifications are in order. No further discussion, a motion was made
by Mr. Stone and seconded by Mr. Loehr that the Distribution Transformer Bid be awarded
to RTE for $10,214.00.
ROLL CALL: Moore, aye; Anderson, aye; Stone, aye; Loehr, aye; Doyle. So ordered.
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Page 92
August 17, 1971
AUGUST 17, 1971 - CONTINUED
BID OPENING, LOT 9, IAKEVIEW SUB. , DONNER LAKE
No bids submitted.
RECREATION DISTRICT, 4.5 ACRES, BROCKWAY/MF_ADOW PARK
The August 11 and 12 letters from Attorney Paul Chamberlain regarding this subject
were read by President Doyle. Mr. Cattan feels the District should retain a por-
tion of the Meadow Park land behind the office for future expansion. Mr. Moore ..-.
mentioned that the property owned by Mrs. Popovich makes it impossible for any
property to tie in directly with the present property, that a portion we would
conceivably hold would be isolated. Mr. Loehr thought the Meadow Park area was
to be entirely for recreation, and Mr. Anderson and Mr. Moore agreed that there
should not be any commercial behind the present office building. Mr. Stone felt
the Meadow Park site should be held in abeyance as the Recreation District has
begun to provide fill for the area and that the 4.5 acre parcel on Brockway should
be given top priority at this time.
Mr. Stone moved that his motion of July 20, 1971 to give a grant deed for $1 to
the Recreation District for the 4.5 acre swamp on Brockway be withdrawn. Mr. Moore
withdrew his original second and seconded Mr. Stone's present motion.
ROLL CALL: Moore, aye; Anderson, aye; Stone, aye; Loehr, aye; Doyle, aye.
As of this motion, the Meadow Park site remains within the lease to the Recreation
District, and the 4.5 acres on Brockway remain as property of the utility district.
Mr. Stone further moved that the 4.5 acre swamp on Highway 267 be granted to the
Recreation District under a long term lease to be identical and running contiguous
with the lease on the Meadow Park property. Mr. Moore seconded the motion.
ROLL CALL: Moore., aye; Anderson, aye; Stone, aye; Loehr, aye; Doyle, aye.
Mr. Doyle stated that the Recreation District will have their attorney draw up -�-
the lease.
RESOLUTION 7109, SURPLUS LAND, 120 ACRES ADJACENT TO LAKEWORLD
Mr. Cattan mentioned that the quit claim deed signed by Mrs. Eve Popovich and
which clears the title regarding an old option on this land, has not yet been
recorded. This matter will be tabled until the next regular meeting.
OLYMPIC HEIGHTS, UNIT 3
The developer, Mr. Jim Myer, has 89 lots to be recorded very soon. Both Dan Cook
and Mr. Cattan informed Mr. Myer that he will have to provide 500 gallons storage
per lot or $8,000 for storage based on 20�/gallon and water source of $50/lot
based on Resolution 7006 or $12,000. These 89 lots can be supplied by existing
tanks in the area of Sierra Meadows, Forest Service, etc. and the developer will
not be required to build a tank as he does not have the elevation for a tank in
his area. The developer, however, will be required to pay cash for water source
and storage to defray the cost of the 2nd Tonini Tank which will serve his area
also. The developer has plans approved by the District in 1966 and may be
required to enlarge his water lines in the future to conform with the master plan.
Discussion ensued regarding servicing this subdivision from the well dug for
Trimont.
(A 5 minute recess was called at this time.)
MR. WAYNE RICHARDSON, PENSION PLAN, EXECUTIVE/EMPLOYEE BENEFIT PLANS
Mr. Richardson recommends a flexible plan with minimum age 25 with retirement at
65. In a fixed plan, the plan consists of 20% of the first $400 of pay plus 40%
of excess over $400/month. The pay is reduced for service less than 20 years.
The pay average is over the highest 5 years. One can elect monthly payments for
life or optional cash payment. Employee contributions are 2% of the first $400
and 4% over $400. Voluntary contribution is optional. The death benefit is also
optional and is 75 X monthly retirement pay. An interest assumption of 6% for
debit calculations is used. Rights on termination are (1) rate of any required
contributions plus 5% interest; (2) percentage of values of benefits. For
employees over 60 years of age, Mr. Richardson recommends paying retirement bene-
fits as cash out of pocket or what he would have had if he was in the plan.
However, employees over 60 can be included if desired. He suggested to the
Page 93 August 19, 1971
AUGUST 17, 1971 - CONTINUED
MR. WAYNE RICHARDSON, PENSION PLAN - CONTINUED
Board that Mr. Cattan be left out of the current plan due to the fact that he
was within 1-2 years of actual retirement. This would require a large expendi-
ture immediately or liability to be paid off many years in the future. Because
of that situation, at the time a plan is adopted, the District could agree
with him to pay him when they mutually agreed for his retirement the money or
j retirement payment which is contained in the basic plan. (Or the same amount
the formula calls for had he been eligible.) In this way at the time he would
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retire, they could pay him direct month by month a retirement which would be
tax free and handled like a payroll check for a retired employee, paid as long
as he 1 ive s. This would constitute adequate retirement payment. Mr. Richardson
recommends this expenditious method of handling this matter as it is fair and
equitable. This would not require a large outlay from the district at one time.
However, employees over 60 can be included if desired. A fixed guarantee on the
principal would be 4 1/2% for 5 years, 4% for the next 5 years and 3 1/2% there-
after. With a variable plan, there is no guarantee. A plan can be half fixed,
half variable. The pension formula is integrated with social security, and
there is guaranteed benefits to the employees. Optional survivor benefits are
The
offered, and your investment and annuity are flexible. plan is flexible to
fit labor, economic and social conditions. Mr. Richardson recommends a modifi-
cation of the pension plan every 5 years, and the Board can change this plan as
it wishes. Personal local service is available through Mr. Richardson, whose home
office is in Sacramento. He services 5 districts in this immediate area including
Reno as well as 20 other districts. A new plan called an employee contributing
deductible plan is available. Contributions by the employee are 3% (pay reduc-
tion) , by the District 6%. The employee can indicate how much he wants invested.
The monthly retirement pay is not a set figure and depends on the pay each year
and length and time of plan. Sex also determines monthly pension amounts since
females live longer than males. The annuity may be fixed or variable in this
new plan. The cost of operation is 8 3/4% and covers administration, quality and
services. There is also a management and annuity fee. The investments are in
j blue chip and similar stocks.
Mr. Richardson said he will be glad to design a
r-k plan to fit our needs. Mr. Doyle thanked Mr. Richardson for his presentation ,
and the Board will take it under advisement.
TAHOE DONNER FACILITIES
Mr. Cattan met with Mr. Damavandi and his engineers yesterday regarding power
lines. Lakeworld will pay for all underground except transformers and a trench
will be dug to accommodate all utilities except sewer. There are 5 miles of
overhead power line, and the District will begin installation Monday except for
� insulators as there is still blasting in the
area. All water and sewer will be
installed in the middle of the road for accessibility during the winter. There
will be a 4" conduit for power, 4" for phone, 2" for cable TV and 10" for water.
The trench will be 3' 6" wide and every 400' there will be a pull box. Lakeworld
will pay for all cable and labor and provide the concrete pads. Mr. Ingram,
contractor for Lakeworld, will provide us with 4 copies of a subdivision map, one
copy which will go to our consulting underground engineer to mark and manholes
which will be 4' long, 3' wide in the middle of a private road. The District will
provide laterals for future condominiums. Security lights will also be installed
near the 7 garages for occupants of the condominiums. The contractor for this
project plans to install 500' a day of water and sewer pipe, and he may go to two
shifts. The phone crew from Sacramento installs poles and cables the same time
but needs level ground for this equipment. Mr. Grow, Union Steward, mentioned
that the IBEW had advised him it would be unwise to cross any picket lines during
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the Teamsters,strike.
NEVADA COUNTY RESOLUTION REGARDING INSPECTION OF ON SITE FACILITIES
Mr. Doyle mentioned that he understood Nevada County passed a resolution on
August 3 authorizing them to be able to contract with us and the Sanitary District
regarding inspection of the Tahoe Donner project, It was his understanding that
if this contract is put into effect, and we should enter into negotiations with
the county, 3% of the project could go to county coffers. He also understood the
Sanitary District had a special board meeting and vetoed the whole resolution.
Mr. Doyle feels this District should follow suit and mentioned that as yet we have
not had the courtesy of being sent a copy of this resolution. Mr. Doyle feels
the money should not go to Nevada City when we need it here in Truckee. He
suggested the possibility of going in jointly with the Sanitary District and
hiring an inspector if this becomes necessary. Mr. Doyle again expressed his amaze-
ment that the county would enact this program without consulting the districts
involved, and mentioned he had questioned his local supervisor about this resolution,
and the supervisor knew nothing. Mr. Doyle urged all board members to investigate
this matter for discussion at the next meeting.
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Au -gus t 17, 19 71 Page 94
AUGUST 17, 1971 - CONTINUED
DONNER LAKE SUBSTAT ION
Mr. Cattan informed the Board that almost all the footings and formwork are
completed, this work being the most difficult part of the project. The steel
left Oregon a week ago by truck and should arrive soon. Sierra Pacific will
tap the incoming structure and perform the steel work. Harker and Harker was
subsequently contacted for the 15001 of primary line and will do the work next
week with construction to be completed in 10 days, The District will pay
Harker and Harker direct to save the 20 0 override to Sierra Pacific. The state
plans to request underground service from this substation to their interchange
next year.
1972 PERSONNEL
This subject will be discussed after the strike is settled.
RESOLUTION 7117, UNION CONTRACT
The union sent us the copies of the final contract, but two pages have to be
retyped.
RESOLUTION 7108, WATER SERVICE TO CONDOMINIUMS, LODGES AND CLUBS (DRAFT)
The proposed resolution was read into the minutes and is almost identical to
Resolution 7021 except for a few minor changes. The board generally felt it was
more advisable to amend 7021 than to have another resolution. This matter will
be tabled Lentil the next regular meeting so that an amendment to 7021 may be
writ ten.
MANAGER'S REPORT
Mr. Cattan presented a report indicating he has worked 41 hours on weekends on
the construction of the Donner Lake Substation and Donner Memorial Park. The
Board agreed he was entitled to a week of compensatory time off this winter. .—.
A motion was made by MR. Anderson and seconded by Mr. Moore that the Manager
rl be allowed compensatory time off for these hours worked on weekends. All ayes.
No further business, a motion was made by Mr. Loehr and seconded by Mr. Moore
to adjourn. All ayes. Meeting adjourned at 10:13 P.M.
PAUL A. DOYLE, RESIDEI'3'I' THE BOARD
CAROLYN BL I S S/;'/'-RECORDING SE TARY
Page 95 Au t 17, 1971
STATEMENT OF GENERAL FUND
Bank Balance 8/2/71 $13,280.18
Deposits 34,620.67
Approved Billings 6,399.25
G. L. Sims (substation) 20 7.70
McKnight Constr. Co. (ret. plan deposit) 10.00
Spartan/Ebert it10.00
Karl Kuttel it " 10.00
Sierra Pacific Power 19,634.52
Olympic Haus Painting (advance) 800.00
Delta Lines 10.21
I _ IBEW (withholding) 56.00 (27J37.68)
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PAYROLL 8/15/71 O.T. GROSS NET
Cattan 775.00 654.20
Paulus 600.00 490.00
Archer 133.87 584.67 475.92
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Reynolds 4.35 560.19 454.49
Silva 4.35 513.87 446.79
Burdick (vacation) 500.00 429.90
Grow 34.42 462.82 382.63
I Straub 13.44 389.76 290.99
Schultz 330.40 290.32
Bliss 262.25 232.79
Pine 259.20 203.03
Craig 212. 80 152.41 (4,503.47)
1 3 , 5 .96
Bank Balance 8/16/71 $16,2 59.70
BILLS FOR BOARD'S APPROVAL
Allied Automotive 20.38
Cranmer Engrg (substa.)
182.25
Builders Service Ctr subs to paint) 2 86.2 2
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Jack's Mob i 1 7.76
Gordon H. Huber Co. (copy Machine) 29.86
Monroe (maint. agreement) 60.00
Sun Printing (billing cards, envelopes) 218.15
Pitney Bowes (mailing Machine) 2 8.35
Southern Pacific (line rental) 5.00
Twin States Concrete (substation) 989.90
Valley Engineers (Donner Park underground) 3,000.00
Consolidated Elec. (Lakeworld line) 119.07
Alpha Hdwe (substation, tools) 186.36
Noble T. Murray (appraisal) 100.00
Superior Switchboard Devices (test switches) 132.08
Tahoe Truckee Agency (addtl inventory coverage) 602.00
Minne s co (quar.. 1 e as e, copy machine) 80.07
Sierra Sun (adv.) 29.25
RTE (underground connectors) 75.60
Hans. E. Sanderson Aggregates (Tonini line) 59 2.6 8
Tei chert'Aggregates (substa.) 14.17
f Oakland Tribune (property adv.) 5.74
Reno Newspapers, Inc. (property adv.) 10.50
George Cattan (exp.) S.50
Vind Bros. (Tonini line) 75.30
j Robert E. Sutton (blacktopping) 185.00
NRECA (subscription) 5.00
Western Auto 2.27
Tom's Equip. Rental (Truck: Substa. , Armstrong) 128.00 (71176.46)
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' Balance after payment of above $91083.24
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August 17, 1971 Page 96