HomeMy WebLinkAbout1972-04-04 Min - Board April 4, 1972
The regular meeting of the Board of Directors of the Truckee Donner Public Utility
District was called to order by President Nelson Stone at 7:30 in the conference
room.
,ow ROLL CALL: R. Waters, present; R. Anderson, present; D. Anderson, present;
H. Loehr, present; N. Stone, present.
EMPLOYEES PRESENT: Cattan, Paulus, Hutchinson
GUESTS PRESENT: Martin McDonough, Bruce McDonough, James Murphy, Bill Hessel,
Tim O'Leary, Chas. Villemin.
It was moved by R. Anderson and seconded by H. Loehr that the minutes be approved
as read.
The Board was addressed by Mr. Martin McDonough who is representing the District
in action against Sierra Pacific's rate increase. Mr. McDonough said that the
Federal Power Commission had granted a suspension of the rate increase until Sept.1.
The commission also set the hearing date for Sept. 6. The District will be required
to pay the increase Lentil the commission's ruling has been given. At this time a
refund would be _ if the full rate increase is not approved.
Mr. McDonough suggested that we engage an Electrical Engineer Economist to help him
obtain facts for the Districts case. He recommended that we hire Mr. Heidrick of
Wilsey & Ham.
The Board discuscussed working jointly with the City of Fallon and Mt. Wheeler Power
Company. President Stone asked Mr. McDonough to contact the other utility districts.
Mr. McDonough said that now it would be to our advantage to work with the other companys.
He said that he would be able to work with all of the districts at the same time and
his fee would be divided between the districts. The Directors asked Mr. McDonough
to contact Mr. Heidrick. He said that he would send Mr. Heidrick a letter with
a copy to Mr. Cattan.
It was moved by R. Waters and seconded by H. Loehr that the Board engage both
Mr. McDonough and Mr. Heidrick to represent the District in its action against
Sierra Pacific Power Company. Roll Call: R. Waters, aye; R. Anderson, aye;
D. Anderson, aye; H. Loehr, aye, t one, aye.
BILLS FOR THE BOARDS APPROVAL
The bills were presented for approval. It was moved by H. Loehr and seconded by
R. Anderson that the bills be paid. Roll Call: R. Waters, aye; R. Anderson, aye;
D. Anderson, aye; H. Loehr, aye; N. Stone, aye.
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AUDITORS REPORT
! Tom asked that since the auditors were here that they be allowed to give their
report. He introduced Mr. James Murphy and Mr. Bill Hessel to the Board members.
I Mr. Murphy presented the report on the overhead projector. The Directors were
given copies of the report to follow as it was presented.
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�"- Mr. Murphy the Board to notice the figure for Utility Plant. He said that it
showed an increase of over $200,000 on just the electric and a sizable increase
for the water. An overall increase of over $30 0,00 0 in the past year. Part of the
increase was due to some extra-ordinary billings, such as Lakeworld and Southern
Pacific. He said that overall, the Utility Plant showed a great improvement.
Mr. Murphy said that the long term debt had not increased significiently and
that most of the new construction was financed internally. He said that the accounts
payable were higher, but that was due to the construction at the end of the year.
Mr. Murphy showed a profit-loss statement going back 7 years. He pointed out that
the combined revenues were over $600,000. He said that the water department does
not usually represent a great deal of the revenue. Over the years, the water de-
partment usually shows a loss, but this past year it showed a profit. Mr. Murphy
! pointed out that a dollar invested in electric plant returns 7 times what a dollar
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April 4, 1972 pale 189
Auditors Report. . . . . . . continued April 4, 1972
invested in water would return. Mr. Cattan said that water has always been�a
headache to the District.
N. Stone pointed out that the District had put a lot of money into water improve-
ments in the past and planned to do so in the future and asked if according to the
audit, was this a sound investment. Mr. Murphy said that from aprofit- loss stand-
point, it was much sounder to invest in the electric plant, but the water system
must be maintained in order to keep it operable.
Henry Loehr suggested that land sales be placed into a special account, so that
they could be kept track of. He said that in the past, land sales had been placed
in a general account and that they soon lost their idenity. Tom said that he would
set up a special fund for land sales
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Mr. Murphy said that with the increase in billings and people moving into the area,
jin the future he would suggest that the District get more bookkeeping help or a more
i sophisticated way of getting the billings out.
R. Waters pointed out that every year the auditors recommended getting a warehouseman.
Mr. Murphy said that a warehouseman would help to keep track of supplies. He said
that good control-of supplies is the key to the District's plant accounting system.
Tom said that the District has a warehouseman on the payroll, but often he is needed
in the field.
Mr. Stone thanked the gentlemen for presenting their report. He said that the Manager
had asked to speak to the Board about retaining the audit firm of Semenza, Cottinger &
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McMullen for next years audit.
A motion was made by R. Anderson and seconded by D. Anderson that Semenza, Cottinger,
& McMullen be retained for next years audit. All ayes. motion carried.
PIPE BIDS
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Mr. Cattan told the Board that the pipe bid had been awarded to Sacramento Pipe Co.
RESOLUTION 7206
Mr. Cattan presented Resolution 7206 to the Board. The resolution was regarding an
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amendment to Resolution 7121.
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It was moved by H. Loehr and seconded by R. Waters that Resolution 7206 be adopted
by the Board. Roll Call: R. Waters, aye; R. Anderson, aye; D. Anderson, no;
H. Loehr, aye,' N. Stone, aye.
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RESOLUTION'37207
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Mr. Cattan presented the Board with Resolution 7207, a resolution authorizing the
president and secretary to sign a contract with the Army Corp of Engineers regarding
the Martis Creek Recreation Area.
After some discussion, it was moved by R. Anderson and seconded by H. Loehr that the
Board adopt Resolution 7207. Roll Call: R. Waters, aye; R. Anderson, aye; D. Anderson,
aye; H. Loehr, aye; N. Stone, aye.
RESOLUTION 720 8
Tom presented the Board with Resolution 7208, authorizing Kenna Pine. and Becky Craig
to represent the District at small claims court.
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He said that the Justic Court had asked him for some kind of authorization from the
{ Board. He said that he would just as soon that either Kenna or Becky attend the
f court sessions. R. Waters asked what would happen in the event either girl terminated.
Tom said that if the Board would like, his name could be added to the list of those
authorized to attend the court sessions. It was also suggested that the word 'rand"
be replaced by the word "or" between the girls names. This way it would not indicate
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that both of them would have to appear at the same time.
It was moved b H. Loehr and seconded b D. Anderson that the Board adopt Resolution 7208 .
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April 4, �9 72 pop 190
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Resolution 7208. . . . . . . . . continued April 49 1972
Roll Call: R. Waters, aye; R. Anderson. aye; D. Anderson, aye; H. Loehr, aye,
N. Stone, aye.
MANAGER'S REPORT
Mr. Cattan said that Lakeworld has shown an interest in the land around the
Mc Glashan Springs. The land consists of two 120 acres parcels divided by-an
80 parcel owned by the Forestry Service. The Board discussed the land and D.
Anderson suggested that the District have the land re-appraised. He said that since
the last appraisal, a complete water system had been put in and the zoning had
been changed.
The Board also dicided that the area around the Mc Glashan springs should be
investagated by the same geologist that will be working on the springs near
the 38.34 acres that the District is interested in selling.
It was moved by H. Loehr and seconded by D. Anderson that the Manager be authorized
to have the land re-appraised and have a geologist examine the area to determine
what land should be saved to protect our water source. Roll Call: R. Waters, aye;
R. Anderson, aye; D. Anderson, aye* H. Loehr, aye; N. Stone, aye.
Mr. Cattan said that he was short on poles so he went ahead and ordered 30 poles
and otained bids.
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Mr. Cattan said that Teichart was coming to see him the following day about a
1,100 horespower asphalt mix plant. He said that the mix plant would be
adj anent to the existing facility.
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The Army Corp of Engineers has asked the District for 300 ft. of underground
line for a weather station.
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Central Valley Electric will be doing the elctric on the condominiums for Mr.
Fitch, Mr Cattan aa.id that he would be dealing with the engineer for Central
Valley and that they knew all of the Districts requirements. Mr. Cattan said that
Central Valley would get written permission from us to back fill ducts.
Mr. O'Leary said that the buyer he represents is still very much interested in
the 38.34 acres near the Brockway Rd. He said that his principal would still
be interested in the land even if two or three acres had to be used to protect
the District's water source around the springs. He said that he was just appearing
at the meeting to find out if any thing had developed since the last meeting.
Mr. Chas. Villemin said that he is building a house on High Street, less than
200 ft. from the Legion Hall. He said that he requested service on water and
electricity and that he had no problem in getting the electricity. He said that
he was lead to believe that it would cost him several hundred dollars to have
the water lines installed. He was puzzled as to why there would be this extra
cost when there is a water line not 40 ft. from the house he is building.
Tom said that he would have Ken Krajewski look into this further. He said that
one of the main problems is that the line would have to cross a county road
and that the County would not allow us dig up the road. They suggested that
the District bore under the road. Mr. Villemin said that he would be willing
to provide the equipment if the cost could be defered. Tom said that he would
rather have Ken look into the matter and get it resolved as soon as possible.
President Stone said that he is.:still looking into the Hilltop situation and
that he thinks that eventually he will be able to come up with something on it.
President Stone said that the Fire Marshall had sent him a letter regarding
a water line to the hospital. He said that at this time the fire flow is not
sufficient and that expansion was under way. The Fire Marshall suggested that
the District hook on to its new ten inch line and extend it up to the hospital.
N. Stone said that the new line is urgently needed, because a new dental-medical
center and also a clinic are going to be built along with the expansion of
the hospital. Mr. Stone suggested that Mr. Cattan put the Fire Marshall on the
agenda for the next meeting. R. Waters asked who would be paying for the new 1 ine.
April 4 1972 page 19�.
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Hospital Water Line. . . . . . .. .continued April 4, 1972
Mr. Cattan said that there are new apartments going in behind the Nevada County
offices and that they could pay for part of the new line.
The Board discussed moving the conference room to the new room upstairs in the
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new addition.
Mr. Stone said that Mr. Cattan has been offered an oportunity to attend a 3 day
workshop on 'Metering distribution systems cost for publically owned electric
districts' . He said that this could help to cut distribution costs, Air fees
and tution to attend the workshop would be about $500. Mr. Cattan said that there
would be no banquets or receptions, just work. Mr. Stone said that there would
be two workshops, one this spring in Florida and one this fall in Seattle. He
said because of the inpending winter, Mr. Cattan would like to attend the
session this spring in Florida.. H. Loehr said that he thought the Board should
consider it and discuss it at the next meeting.
Tom said that the low pipe bidder was Pacific Pipe Company, but that it did not
come up to the Districts specifications, so the bid was awarded to the next
lowest bidder, Sacramento Pipe Conpany.
Tom explained a situation that had happened in the past year. He said that a
District employee had been moonlighting digging pipe lines and in the process he had
done some damage to a road . Tom said that this had happened last su mer and
that he had been after the man to get the repairs colleted. Tom said that he
had been suspended untill the work is completed.
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' come before the Board it was moved b H.
There being no further business s to c e y
Loehr and seconded by D. Anderson that the meeting be aj ourned. All aye,
motion carried.
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NELSON S. STONE, PRESIDENT OF THE BOARD
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j CYNTHIA JEAN HLT5HINSON, RECORDING SECRETARY
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April 4, 1972 page �92