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HomeMy WebLinkAbout1972-11-21 Min - Board November 21, 19 72 The regular meeting of the Board of Directors of the Truckee-Donner Public Utility District was called to order by Nelson Stone at 7:30 .m. in the conference erence room. ROLL CALL: Roy Waters, present; Rex Anderson, present; Duane Anderson, present,* Henry Loehr, present; Nelson Stone, present; GUESTS PRESENT: Lauren Russell, Randy Russell, Jack Houlgate, Bill Marun, Mary Grayfish EMPLOYEES PRESENT: John Craig, Ken Kraj ewski Stone: We wish to introudce our guests tonight, and welcome them to the meeting. We have with us tonight, Miss Joan Slevin, and Mr. David Dodge. (They are introduced to the Board Members) . For the audience that might wonder what is going on, these young people are with a gifted program at the high school. And as near as I get it, it is suppose to be for the ones that have so much brains, they have to give them extra things to do to keep them busy. Joan and David, we hope that you will ask cues tions, and participate in the discussion. If something should come to a vote tonight your name will be called, but your name will not be added as part of the records. We hope that you have a yes or a no on the subjects. We will now carry on with the agenda, beginning with the minutes of our November 7, 1972 for approval. APPROVAL OF MINUTES OF NOVEMBRER 7, 1972 The President asked if there were any corrections, additions, or omissions to the minutes. Director Roy Waters asked for a correction in the Board voting for the resolution, at the end of the Sierra Pacific Power Company presentation. He believed there was one NO vote. However, Mr. Cattan as- sured him that the vote was correct in the minutes. Therefore, Director Roy Waters moved that the minutes be approved. And it was seconded by r--� Director Duane Anderson. BILLS FOR APPROVAL BY THE BOARD Director Duane Anderson stated that he did not notice an item for the lunch about two weeks ago for the Chappie Luncheon in South Lake Tahoe. Tom Paulus said that it all came out of petty cash. However, no checks were written at that time. It was then moved by Director Rex Anderson, and it was seconded by Director Henry Loehr that the bills be approved. Stone: What is the item of the Sheriff in Sacramento County? Paulus: He had to attend to a small claims action. One of our industrious past customers owes us a sizeable bill. We did not know where he was so we had the Sheriff issue a summons for him. Loehr: What do we pay Nevada County taxes for? Paulus: Thats on the assessment suit. Two of them came due on two lots. R. Anderson: I move that the bills be approved. Loehr: I second it. Stone: The bills be approved. ROLL CALL: Roy Waters, yes; Rex Anderson, yes; Duane Anderson, yes; Henry Loehr, yes; Nelson Stone, yes; Paulus: Nelson, before we get into the regular agenda I have a financial report to pass around and we can go over it. Page .342 Financial Report FINANCIAL REPORT Paulus : We have looked at this before. . .it is divided into three sections, the operatriumg statement, the part that shows you the profit, and the balance sheet, the part that shows you the profit, and the balance sheet is on the second page. The third page is just a break down of power. The balance sheet doesn't change much. We have the amount that we budgeted, and we have the amount for the month. The-re 'is quite a change in j us t about everything in comparing last year to this year. Revenue year to date for example is up 210. Stone: It's up 21 a? Paulus: Yes. And the purchase power is up $50,000, or up 2 4 0. There is a general increase on down the 1 ine. About the only thing we actua 1 ly decreased was on the loan. Because we haven't borrowed any additional funds. We have paid quite a bit on the principle. The difference between the power cost from last year to this year, out of every do l lare we spent almost 49� last year. This year we spent almost 50�. It doesn't amount to much per- centage wise or dollar wise at this point. Considering it is only a l o: - discrepancy. Take to off the top which is $519,000, it amounts to $5200. Stone: In general it seems that we're feeding our budget somewhere. Is this ad- justed somewhere along the 1 ine? Paulus: Our budget is basically a paper figure. We assumed this was what our ex- penditures- would be. And hopefully they would match. At this period, with ten months out of the year its okay. We are still not too far off looking at it over the annual period. At the bottom we estimated we would net $7,000 where we only netted $2,800. The cost of power we estimated was almost $31,000, it came up $36,006, so there is your $5,000 right there. Loehr: Does this include the water? Paulus: Now the water is the last figure. We have combined these for REA and we end up with one lump figure for the water, which shows about $11,0 0 0. And last year the same time it was $10,006. The water is holding fairly stable. It will start noticeably in November, and very noticeably in December, January, & February because there will be no bills for water connection fees. At $150 a month, you take ten of those a month. Thats $1500 a month right there. So that boosts it up quite a bit. And what we made last month was $1087 in water. The biggest things are the connection fees for the water department. Of course they don't go into the winter. At the end of the year it will show $9,000 or $10,000 net profit, close to what it was last year. Stone: Can you enlighten us on the increased use of power, up 21 o and water is up 10 0? Paulus: It is obvious that there are more people_in the_ area. We-,have:greater loads. At this time last year, Lakeworld wasn't doing too much. About $2,000 a month. We have five metering points there. Thats what we were mentioning the other eveing that it takes a lot of customers to bring in that much revenue where you get one industry that can bring in the same amount , rather much more with the same amount of of fort. Basically Lakeworld has made the biggest share of it. Loehr: Do you have a figure on what power costs are for water division.? Paulus: It doesn't show here, but it runs about $300 a month. Loehr: That is our cost? Paulus: Right. We can break it down real easy. In fact Sierra Pacific called the other day for some statistics. It shows on each report what they were, our office use, water, the kilowatt hours, the street lights and so on. Page 343 Financial Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Continued Loehr: 'Those are things that will have a bearing on the agreement if we enter into it. Paulus: On the second page, the bottom of the balance sheet is broken down by customers, amount of kilowatts used and the revenue. And down to the very bottom, it shows what we actually purchased, and what we have sold. Last month by reading the meters, at each interaal we actually gained 9 0 We sold more than we purchased. This month of course it goes back the other way. Loehr: How is the meter reading situation? Paulus : Well it is slow. We have a new man. He also makes connects, disconnects and so forth. He only reads maybe 6 hours of the day. And he is new on top of that. He is doing a very thorough job. He will work some over this holiday. So that he won't be to far behind. The last year to date operation looks pretty good, although the month doesn't, and that is pri- marily because of the increased power cost. S-bone: Which copy of this document does the Sierra Pacific Company have? Paulus: They have a copy of each one of the three that you have. I think basically they are more interested in our revenue, than anything else. I don't think they are concerned with our expense or our net. Stone: Do we have much revenue that they can count on a certain percent regardless of what they were selling, whether power, water, or turkeys? Paulus: Our revenue has been just about 20 o profit. And I don't know what Sierra Pacific is. I didn't see their annual report for last year. Their's is that much at least. But ours is different, if we get short of money, we hopefully go to REA. Thats our only source. They are not really in the ,,.., same financial position we are. Thats all I have. Stone: Do you Gentlemen have any questions? Do you understand what he is presenting to us? Paulus: Basically by the time you get through, all this tells you is how much money you've taken in, how much you've spent, and how much you've netted. We have made $2 800 in the month of October. The good months before the increase are pretty much on the wayside. So if your going to sell nearly $57,000 worth of electricity and end up making $2,80 0 that not too great. Stone: Okay is that all Tom? Paulus: Yes. The net revenue or margin will remain fairly constant. If we for Sierra Pacific don't-change the-note structure. Stone: Any questions? Okay lets go on with the agenda.. DELEGATING MR MARTIN MCDONOUGH - DEPARTMENT OF WATER RESOURCES Stone: Item #4, Delegating Mr. Martin McDonugh to attend the meetings and such. Would you tell us about that George? Cattan: I made you a copy of the letter from the Department of Water Resources asking us if we wish to pruchase. That pump facility which is Piru Creek facility, 50 miles north of Los Angeles. I have asked Mr. McDonough if he could re- present us at the meeting in Sacramento, December 14th because I-- will not be able to do it. Because of my operation. After ,I_get all of the data, then I will be in a position to advise the District whether we should go for it or not. It may involve a lot of money. Maybe I could give a brief explanation what this pump storage is all about. In Oroville they have something similar to Piru. Maybe some of you would want to visit and see it. (Explains through drawings on the chalk board) . Stone: Is Piru going to be designed after this (drawing on the Board)? Page 344 Delegating Mr. Martin McDonough - Department of Water Resources. . . . . . . .Continued Cattan: Yes, they will be similar. Loehr: Where do we enter into this? Cattan: The facility is going to be 1,200,000 Kilowatts. And it won't be completed until 1980. The city of Los Angeles has already acquired 50% with the Department of Water Resources. So the remaining 600`000 is going to be offered to Public Agencies. Stone: Now your getting down to the nitty-gritty. Loehr: Who is wheeling it? P G & E and various others? Cattan: This has to be worked out. Stone: Do you think it is feasible that we can get into this deal being a public agency? But they how do we get our power back? Do we trade power? Cattan: We will have to consult with Martin about that. First, he is going to that meeting because he can obtain a copy of the contract which already been made with Edison Company. And once we get a copy of the contract and maybe he can find out how much it is going to cost. D. Anderson: Did you say he has contacted someone already? Cattan: In Sacramento. You have a copy of my letter. D. Anderson: Yes. Cattan: The meeting is December 14th, in Sacramento, in which the Department Staff will explain the project in detail and answer any questions. In order to facilitate planning for the meeting, it would be appreciated if the in- terested party would contact Mr. Lloyd H. Harvego. D. Anderson: How much of a contract do we have with Sierra Pacific for purchasing power? Cattan: Well you will be given credit for it. D. Anderson: It's not a binding contract? Cattan: No. D. Anderson: How long does it run for? Cattan: For five years. D. Anderson: Shall we take a motion to delegate? Cattan: Just for that meeting only. Stone: It looks kind of remote. We're a public agency and there may be some change to get a couple thousand of kilowatts on credit, or trade to P G & E or Sierra Pacific we should do so. Cattan: I wrote to Mr. McDonough and told him that the District may be interested in having power allocated. We may request about 20,000 kilowatts. But thats not going to be tomorrow, not until 19 80. By that time our load will be about 20,000 Kilowatts. Maybe later on in the year we may arrange to go and see the Oroville one. It is a lot similar to what I explained. D. Anderson: What kind of output does Orovi lle Dam have? Cattan: I have an article on that. D., Anderson: Well, I move that we delegate Mr. Martin McDonough as our representative at the December 14th meeting indicating our interests. Cattan: After we get a copy of the contract, I will explain it more. Then we will see if we should go further with it or not. Loehr: What cost would there be just delegating Mr. McDonough to attend this one meeting. t Page 345 Delegating NY Martin McDonough - Department of Water Resources. . . . . .-. . . , .Continued Cattan: About $35.00 per hour. Loehr: Thank you. I second the motion. Stone: It has been moved by Director Duane Anderoon, and seconded by Director Henry Loehr, that our attorney Martin McDonough attend the Department of Water Resources meeting, dealing with the Piru Power Development. All in favor? Everyone said yes. Motion is carried. Mr. Martin McDonough - Washington Hearing on rates Cattan: We have another Martin McDonough item on the agenda, dealing with the Washington hearing on rates. Loehr: He's been authorized to attend this already hasn't he? Waters: No. Thats in Sacramento. This is back in Washington. Loehr: He represents us already doesn't he? Cattan: He is just telling us how much it is going to cost. Waters: What is the cost? Cattan: The cost is $9,000. This is about what the figure is he gave before. We are at present paying about $7,000 a month extra, and very soon it will be $10,000. This case has to be followed. We can't just drop it now. Waters: The total cost is $9,000 now? D. Anderson: For this trip? Waters: The total cost of his efforts will be $9,000? It won't be $9,000 just for a trip back to Washington? Cattan: No. This is for all. Mr. McDonough's quote. from his letter: Mr. Heidrick and I both work on a time basis. And I hope you will believe that we will not put in anymore time on it then we believe necessary for the proper pre- sentation. I would like to come to Truckee to meet with you and the Directors to discuss this matter, (end of quote) . I don't think there is any reason to incurr expense for him to come now. He has nothing more to tell us then we know so far. Stone: Seeing the man has asked for a confirmation, we will take a vote on it to see if the Board is still in favor of this thing. Do you want that in a form of a formal motion George? Cattan: Yes just agree to continue it. Loehr: I would so move. D. Anders on: I second it. Stone: It has been moved by Director Henry Loehr, and seconded by Director Duane Anderson, that the District continue with their plans of sending Martin McDonough to Washington to attend the hearing before the Federal Power Commission. Sierra Pacific Power Company Vs_. Truckee-Donner Public Utility District. ROLL CALL: Roy Waters, yes; Rex Anderson, yes; Duane Anderson, yes; Henry Loehr, yes; Nelson Stone, yes; Stone: ! �No question -about that -vote being unanimous. Lets-,hope-that this gentleman can do something for the District. RESOLUTION #72 20 - SIERRA PACIFIC POWER COMPANY MANAGEMENT PROPOSAL Stone: Lets deal with Resolution #7220. And for the record I wish to insert in the tape Resolution #7220, of the Truckee-Donner Public Utility District authorizing the feasibility report by Sierra Pacific Power Company on operation and management of the electrical utility of the District, whereas Sierra Pacific Power Company desires to undertake a feasibility report and Page 346 Resolution #7220 - Sierra Pacific Power Company Management Proposal Loehr: I don't think that tbere is too much of a complaint between a grant deed and an easement for road purposes. A non-exclusive easement. They accomplish the same thing. The only thing that with a non-exclusive easement, if for any reason, the thing is never constructed. You have given away your land. You still retain the ownership of that land. But you can't restrict it. If a political sub-division wants to take it over, that is the only th ing th at I know ab out i t. Cat tan: So only the Director of Pub 1 i c Works is objecting, But the County Couns e 1 he said that this would probably be acceptable. And Mr. Paul Chamberlin recommends that it should be a deed of easement. Marun: As far as the use of it goes like you were pointing out, doesn't make any difference. A non-exclusive easement proposed to a grant deed. It carries the same right of use to it. If the road for some reason wasn't built or abandoned we would still revert to the adjacent property. Whe the r it is an abandoned easement or an abandoned road, the state law implies that, whether it is B Title or grant easement. As far as the legal purposes, there is really very little difference. Stone: The Attorney for the District has suggested, and I will have to follow his suggestion. Therefore I suggest the transferred document be changed to a deed of easement. Whereby the District would grant to the County of Nevada an easement for road and Public Utility purposes over the area described. Cattan: There is another letter here which stresses more on the point. Loehr: The dates of those letters , are they prior to his conferences that he has had with Nevada City? Cattan: After he had the discussion. Waters : Is there any correspondence through Mr. Todd regarding this? Cattan: No. I have another letter here from Paul Chamberlin, he stresses that this policy we adopted , Resolution as a deed of easement. He doesn't re commend. Stone: Let me read this paragraph for you. This is a letter from Paul Chamberlin to the Manager. I discussed Bill Todd, County Counselor, a Question as to whether or not the county would require an easement as distinguished from fee title which would be to the effect to the form of grant deeds submitted. In my discussion with Bill, he indicated although the County policy generally was to acclaim fee titles he thought the county would never the less would accept an easement , rather than fee title. And I told him that I would prefer to go the easement route which would eliminate to some degree. The attorney is taking into consideration this Board was charged with granting that land over there for a fee. He has evidently worded in the resolution just so, he would either eliminate or make such contention that the future would not have grounds for basis. Cattan: Then he has a notation that the easement is not to be deemed effective or recorded unless and until the County has okayed the assurances or has agreed to the installation of the road upon the easement therein. So that the District can be assured that the easement would not be used unless there actually would be a road or other utility sold by or at the direction of the County. Waters : Well what happens to this Resolution that we passed last April regarding this Didn't we have a Resolution that we passed on that? Stone: No we didn't. It was just an agreement in principles that we would grant access to landlocked area on our property. Cattan: You have a copy of the resolution. Stone: Yes. R. Anderson: From whom did you get the wording of the Resolution? Cattan: From Paul Chamberlin. This was prepared by him. Page 348 Resolution #7220 - Sierra Pacific Power Company Management Proposal Stone: study as related to management and operation of electrical services and facilities and utility of Truckee-Donner Public Utility District. And whereas, Truckee Donner Public Utility District desires that such a study and report be taken. Now therefore, be it resolved before the _ Board of Directors of Truckee-Donner Public Utility District as follows : 1.) The Sierra Pacific Power Company at its own cost and expense is hereby authorized to undertake a feasibility study and report as to pos- sible management operation or control of the electrical system and works of the Truckee-Donner Public Utility District. 2.) That upon completion of said study and report, the copy thereof shall be presented to the Board of Directors of the District with being anticipated that such report will presented on or about December 19th, 1972. For our visitors and guests , this is one phase of searching for a different approach to management. Sierra Pacific Power Company has been showing interest. This is one way to do i t. Another way would be to sell the District completely. Another way would be to continue our own management by either upgrading or downgrading it, whatever the case may be. Loehr: Mr. Chairman, I move for the adoption of Resolution #7220 R. Anderson: I second it. Stone: It has been moved by Director Henry Loehr, and seconded by Director Rex Anderson, that Resolution $7220 be adopted, authorizing the feasibility study. ROLL CALL Roy Waters, yes; Rex Anderson, yes; Duane Anderson, yes; Henry Loehr, yes. Nelson S tone, yes. RESOLUTION NO. 7221 - GRANT DEED TO COUNTY Stone: Okay. Resolution $72 21 - Grant Deed to County, what do we have? D. Anderson: Mr. President, I would like to be excused from this item on the agenda.. Because of a conflict in interest. Stone: Okay. Director Duane Anderson you may be excused from any participation. You don't have to leave if you don't wish to. If we need to recall we issued a minute order to the Manager to contact the Planning Commission through our attorney, expressing our dissatisfaction with the way the load matter was put back in our bag. The only knowledge I have now is the Planning Commission has replied that it is a closed subject. Cattan: The County of Nevada wrote to Harry McCormick; Enclosed grant deed appears to be in order. We request that you submit it to the Truckee P.U.D. for their approvals. The county will not accept a bid until such a time when a road is constructed or an agreement is entered to insure the construction. Now Paul Chamberlin has written to me and he has prepared a copy. The county requested the grant deed and then he said no, he wants a deed of easement. And he has discussed this matter with County Counsel and he agreed to it. And here is the resolution. Loehr: You don't grant-deed it do you? Cattan: No it is going to be a deed of easement. He has his reasons. -Bill Marun: My name is Bill Marun. I am involved with this. I talked to Gary Flannery �--- and he was in conversation with Mr. Harry Hider. I talk to George about this the other day. The County's normal way of accepting a roadway, parcel of land is by granting. Gary said today that they would never accept a public roadway in any other form, other than a grant of deed. The use to the county is the same. Whether it is the easement or the deed. It is more or less the County policy. You could not say that an easement does not serve the purpose. The County Engineer requests that the deed is firm to the County. Stone: I didn't get your name. Marun: My name. is Bill Marun. I -represent the client. Page 347 Resolution No. 7221 - Grant Deed to County. . . . . . . . . .Continued Stone: For our guests, let me explain; The Utility District owns a piece of property on the river. Behind which the Developer would like to put in some improvements. There are also two other landowners, landlocked behind this piece of Utility land. Resolution No. 7221 of the Truckee-Donner Public Utility District authorizing the execution of deed of easement to the County of Nevada. Be it resolved by the Board of Directors of Truckee- Donner Public Utility District as follows: 1.) The said Board of Directors hereby deems it beneficial and in the best interest of the District and that said District grant to the County of Nevada by way of deed easement. Cer- tain rights and privileges for road and public utilities purposes within a long and upon that`certain property 6wned'by the District. As more parti- cularly described in deed of easement attached hereto and by this reference operated herein. 2.) That the President and the Clerk of the District are authorized to execute said deed of easement for and on behalf of Truckee- Donner Public Utility District and to transmit the same together with the copy of this resolution attached to the County of Nevada. Now George can you answer this question? Does the deed of easement refer to in Re- solution #7221 locate this road where you have to bissect our property at the smalles dimension? Cattan: You see the County has to agree on the road allignment. Marun: I have a couple sketches. We have made the al lignment swing northward away from the Ice Palace Lot. The road itself touches no part of the facilities. Cattan: Has this Allignment been approved? By the County? Marun: Yes. The County has a copy of description in grant deed form. And at your request, I have made up in easement form -for the Boards approval. And sub- mitted to the County. Loehr: Does your description follow that? �-- Marun: Yes. Loehr: Mr. Chairman, I move that this matter be tabled until the next meeting. R. Anderson: I second it. Stone: It has been moved by Director Henry Loehr, and seconded by Director Rex Anderson, that the matter pertaining to Resolution No. 7221 of the .youth West River Street, be tabled at this meeting. � � Wo_S ii ce�ort d-• -Me v�tit ROLL CALL: Roy Waters, yes; Rex Anderson, yes-, a!Z1--t2 ane Anderson, y Henry Loehr, yes ; Nelson Stone, yes; Finally after much discussion ensued, it was finally decided by the Board Members that the Manager write to Paul Chamberlin to contact County Counsel and get a written statement that the County will accept the deed easement before approving the Resolution No. 7221. RESOLUTION NO. 7219- - ELECTRIC MINIMUM REWORDING Stone: George, in your bookkeeping now what happened to 7116 and 7201 that was passed. Did you get it out of this? Cattan: Yes. D. Anderson: Mr. President, may I be welcomed back to the meeting? Stone: Duane Anderson is now welcomed back into the meeting, to discuss Resolution No. 7219. D. Anderson: Then I would like to ask a question. Are these two items going to take much time? And if so I believe there are people out in the audience that are wishing to discuss a particular matter that was postponed from our last regular meeting, to this meeting. I don't see that item on the agenda. Pane 34S Resolution No. 7219 - Electric rewording. . . . . . . . . , . . , , , , . .,Continued Stone: This won't take long. It is already to move. It was simply a rewording to erase $5.00 a month or $60.00 a year, which was misleading. Waters: I move that Resolution No. 7219 be adopted. D. Anderson: I second i t. Stone: It was moved by Director Roy Waters, and seconded by Director Duane Anderson that Resolution No. 7219 would be adopted. Said Resolution being in clari- fication amending .Resolutions Nos. 7116 and 7201. ROLL CALL Roy Waters, yes; Rex Anderson, yes; Duane Anderson, yes; Henry Loehr, no; Nelson Stone, yes. Waters : May we take up this pending deal that we had with Prosser Lakeview Estates, and get these people out of here before we finish our business. Prosser Lakeview Estates Cattan: Well this question is not yet solved. The question of Unit #4, the com- plication was that Mr. Houlgate brought- up the question of Units #4 & #S, its a big area. I have talked to Lakeworld, and they said to refer the matter to Jim Granmer, and I have written him a letter and haven't re- ceived an answer. He is taking up the matter with the County. Waters: Nothing has been settled then? Cattan: Not yet. I wrote to him on November 10 th. D. Anderson: What does that concern now? Cattan: It concerns Units #4 & S. •-- Houlgate: Units 1, 2, & 3 were the only units that we brought forward, but we did mention the initial negotiations, we have a contract. _ There was a con- tract drawn up in regards to Units 4 & 5. Our concern was just 1, 2, & 3. The ones that we had the agreement with the District on the poles being in the back lot. Rather than on the Street. Because of the sight pollution and the reason that we came to the Board meeting of course is to ask the Board to adher to an agreement that we have had since 1965. D. Anderson: Did you find those agreements , George? Cat t an: Well we know that don't we? D. Anderson: Well we did ask for them at the last Board meeting to be sent to us prior to this meeting. Houlgate: As I said at the last meeting to this Board , to the best Of my knowledge, other' than in Units # 4 & 5 there were no written contracts because there was no need for any. Because the District has the final say on any of the plans that the Subdividers bring forward. And if the subdividers is not doing all of those things .that time-7 it is the policy of the District and the District of course won't sign. D. Anders on: What argumentation do we have? Cattan: It is the same thing written on the front sheet on the improvement plans. On the improvement plans for Units 4 & 5, the same as 1, 2, & 3. This method is being taken, because whatever happens to Units 4 & 5, applies to Units l, 21 & 3. Stone: What is your impression, Jack, from what you know about.h.,_ . does this agreement made by the P.U.D. some years ago, are you assuming that it also applies to Units 4 & S. Houlgate: The only way that I can answer that question is to show you-.the i-last com- munications we have regarding Units #4 & S. This is the contract we had with the District. I have in connection with that letter from the District with regard to 5, and a leter from the District to Mr. Mansfield, the Planning Director of Prosser Lakeview No. 5 which reads : We have reviewed the tentative maps of Prosser Lakeview g Units 5, 400-lots, and our approval Page 350 Prosser Lake Estates. . . . . . . . . . . . . . . . . .Continued Houlgate: is subject to the following: Water will be provided by this District according to the Subdividers agreement with the District in accordance to Resolution 7006. Electric will be provided subject to extension rules. All easement at rear of lot lines to be cleared for power lines installation. Sincerely, George Cattan, Manager. That really sums up the agreement that we had with the District. And this is the agreement in accordance with Truckee-Donner Public Utility District, Resolution No. 7006. And with an understanding reached with the Truckee-Donner Pub 1 i c Utility District and Truckee Lakeview Estates is recorded in the official minutes of April 17, 19 70. Page 63, the Truckee-Donner Public Utility District will furnish water and electricity in Units 4 & -5, Prosser Lakeview Estates, on the following: 1.) Back line easements will be cleared by the Developer and designated by the District for power line installations. 2.) Electricity will be pro- vided in accordance with the District's hookup and extension rules. 3.) Water distribution lines will be installed by the Developer in accordance with District standards. 4.) The Developer will construct a 200,000 gallon storage tank with the development of Unit #5, including booster pumps and pressure regulators. 5.) The Developer will pay a source charge on Unit #4, of: $1300 and a source charge on Unit #5, 400-lots, of $50.00 or $20,000. And it is signed Truckee-Donner Lake Estates, by L. I. Russell. and signed Truckee-Donner Public Utility District by Paul Doyle, President and attested George,Cattan, on the 3rd day of June. I really don't see the need for a delay because really, what we are asking is that the Board adopt a policy of adhering to its policies. D. Anderson: The question is are we going to live by our agreemet? Cattan: The matter is being taken with the County, and when it is complete I will present it to the Board. Then you may make your decisions. D. Anderson: I'm not sure what the County has to do with i t. Houlgate: What is being done with the County George? Cattan_: _ I cannot divulge the matter where:the Di9tir3J:ctr may be sued by anyone., till the matter is completed. L. Russell: May I ask a question? Was the Board aware of an agreement being broken? Was the matter brought before the Board before money was despended and pole lines run down in an area that was to an agreement that was enforced? I would just imagine that the Manager before arbitrarily doing something that is contradictive to an agreement that was inspired by the Board. Waters: Well did we do it or did the Telephone Company do it? L. Russell: No. The Telephone Company is told where to put the poles. This would be a grave concern of mine if this had happened. Cattan: If we find that it is not to the best interest of the District, we may not have to go on a real easement. Waters: We have done it on three portions of it now, haven't we? Cattan: Yes, a good portion. Waters: Why would it be to our disadvantage not to do it now? Cattan: There part is very small. D. Anderson: Are we subject to undue expense? Heavy initial cost to get power to home- owners to the other end of the subdivision. Without having to outlay a considerable amount of money. You indicated something like $20,000 to serve 6 customers. The truth of the matter is how we go about it. It is - a heavy initial expense to the District. It was suggested that, at a previous meeting' some way or another these subdivisions be assessed especially. One the older subdivisions where we are having to have a very high cost in power, I think we should do something. But I don't think we have to go back on our agreements. L. Russell: There is one other point that was brought up by George that I think should be .cleared. It was brought up by Duane and that is whether the clearing of the back lots was done adequately. When we enter into an agreement like this. There is a fee charged to the Developer toward inspection. Page 351 Prosser Lake Estates. . . . . . . . . . . . . .Continued L. Russell: And this fee is paid by the Utility District. So if there is any question as to whether the job was done correctly, or incorrectly regardless of what it is. This I think would fall back on the party that is responsible which would be the District. Stone: George, did we have an Inspector out there or was that one of the County Inspectors? ,_.. Houlgate: We paid money to the Utility District was set-up in the assessment District for inspection to see that it was done properly. But I think one of the things we should clarify back to the inspection that it is always thought that the Subdivider is responsible because perhaps the clearing wasn't done the proper width or proper heigl�r. When the Subdivider has all of his plans and specifications ready so that the,,-cofttract is going to be laid on the Subdivision. The County provided -the resident Engineer to over see that the work is done properly. And of course the resident Engineers are suppose to have the Inspectors to see that the work i§ done according to the plans and specifications as designed by the Subdivider and Engineer. He sees that these things are done properly. From that point a Subdivider has nothing to say legally about what goes on, on those public rights-of-way. If he sees something going wrong he can go and complain to the County, such as any private Citizen can. But he has absolutely no control over that contract. This is why the Subdivider is asked to provide a fee for the County and the Utility District to see for themselves that the work is done in com- pliance with their wishes. This has been done for the District. Stone: I saw some clearing there and no attempt was made to put up a power line there. How do you pin that down? Houlgate: There are two things : 1.) You have to look at the construction plans to see if that particular right of way, if the contractor was asked to clear that right of way by the Utility District. That is the first thing you have to determine. The Utility District outlines the route they want their poles �-- to proceed to the Tract. Only those rights of ways are cleared, that the Utility District indicates they are going to use. Because it is senseless to cut down the trees on rights of way that are not going to be used. Stone: You in effect paid the County to do the Inspection. Houlgate: As assessment District is set up to pay for all of the improvements and in that assessment District fees are established for Inspection. We did not pay them. The assessment District did. Loehr: Those are County Roads aren't they? Houlgate: Yes-they are county roads as soon as the final map is accepted. Loehr: George, do you have an agreement with the County to permit you to put pole lines on county roads? Cattan: Yes, on County roads. As I said before we are not installing any poles on roads at the present because of winter conditions. It is my duty to pre- sent to the Board the cost involved when any action is taken. Stone: The major problem facing the District would be, are we involved in having to put poles down the rear lot line, Units # 4 & 5 where the current owner don't want poles down the back line. Cattan: There is no complications on 4 & 5. D. Anderson: Apparently on 1, 2, & 3 its- constructed subdivision is fairly binding. R. Anderson: Does the current Board have a right to acsend any prior agreement? D. Anderson: Unless it is requested by the person who requested it specifically. Didn't we have another house down the street from Randy that was to be served power as well? Houlgate: Yes. The poles have been put up but I :_understand that the wires have not been strung. Is there an intent to string thaw wire? Prior to next Spring? Page 352 Prosser Lakeview Estates. . . . . . . . . . . . . .Continued Cattan: Yes they intend to do it. I have to give you a full report on what it is going to cost on Units 1, 2, 3, 4, & S. And I can't do it in a day or two. The matter is not so pressing, because we are not going to put any poles in , in the winter. Stone: This Chair feels that we have two separate phases of this matter. I think we should separate them. Specifically 1, 2, & 3 under one landowner. Cattan: I have my report dealing with 1, 2, & 3, and 4 & S are on a separate report. Loehr: When do you suppose you could have that report, George? Cattan: I have to meet with our attorney, and I have to get information from the County, and Mr. Mansfield. I cannot divulge anymor information becauset we may may enter into litigation. I have to wait until I get everything ready for the Board. D. Anderson: From your standpoint, Jack what is the pressing matter? Houlgate: Things seem to have a habit of continuing to be tabled, and no action ever taken. So it appears that everyone is interested but nothing is done. We came to a meeting two weeks ago, and the meeting tonight was suggested by the Board, not us , several of us had other things we wanted to do, but we came to the meeting because we thought something was going to be done. Now we are being told that the time that the Board had determined the time it was going to take wasn't the proper time. I would just like to get it resolved. Because there are times when I'm not in the area. Stone: Can we give them a definite date? And if we cannot meet that commitment we would be able to notify them in advance? C at t an: I don't know when I will be ready. Houlgate: Can we get some commitment? January, February, March.? Cattan: December I will be going for my operation, It will be three or four months before we can get started. What is the second week in anuary? It doesn't make any difference. I guess the second week in January. Loehr: He said the second week in January. D. Anderson: But he will have to have time to recuperate. Won't you George? Cattan: Make it the first week of February. The first meeting in February. L. Russell: Why don't he wait until March, then there will be a new Manager. Then you won't have to face up to the problem at all. Loehr: I don't think we have to say things like that. Stone: Mr. Russell I don't think that was necessary at all. Cattan: It will be the first meeting date in February. D. Anderson: I move that the meeting be set for the first meeting date in February. Waters : I second i t. Stone: It has been moved by Director Duane Anderson, seconded by Director Roy Waters that the matter pertaining to power line allignment for Prosser Lakeview Estates be tabled until the 1st meeting February. In the even of said subdividers cannot attend the 1st meeting February, _ the meeting will be rescheduled so that they can be in attendance. ROLL CALL: Roy Waters, yes; Rex Anderson, yes; Duane Anderson, yes; Henry Loehr, yes; Nelson Stone, yes ; Stone: Okay lets take the last item. Page 353 Land Donner Pass and 89 Stone: For our guests, what we are discussing here is sort of a land exchange. Cattan: I went to the School District meeting that night. The School District has 24 feet plus 200. Some other people want to put up a restaurant there. But there can't be a restaurant put up across the School. Or any other business where liquor might be sold. Stone: George, may I ask what the School District has over across the street that butts up against that land? Cattan: They have the new school building. I talked to the interesting party, and they said they would like that because it would make it quite a nice lot. If they buy our District land on the Souths i de, The Brockway Shortcut, then we can give them credit .for this. Waters: If anybody has any objections they ought,_to be able to come before this Board in view of what has happened in the last six months. Before we get all set up, then somebody comes in like we have had before. Now i4hat you are planning on doing is in the sense of the word is to sell, say for $120,000 less $31,000, huh? But we will sell it for $90,000 to the school? Why don't we just give it to them rather than transferring money from one pocket to another? D. Anderson: We're not selling to the school. Loehr: Well, it is commercial. And also we can get Placer County to help us pay for it. Waters: Wouldn't it be wonderful as a park? Cattan: You know on the Southside there is a big area, to open as a park. Across the street it is too expensive, and children could get run over. Stone: I would think before we ever sold that land we would really take a good look at the assessed value of that land. And I'm not speaking in terms of money. Now we will go into the Manager's Report. Go ahead George. MANAGER'S REPORT Cattan: The Telephone Company has started erecting poles at Tahoe-Donner. And when our men don't have any services we send them up to Tahoe-Donner, to string wires on the poles that are up. That is all I have for tonight. Stone: Is there anything new on the Substation, are you going to have to scratch that until later? Cattan: I don't know. It all depends on the weather. D. Anderson: I have a question, and it is somewhat pertinent to the discussion on Prosser Lakeview Estates, high cost of the initial power into a Subdivision. On the old Subdivisions I brought up several months ago, the possibly of the different ways we could finance this cost. And I believe George you in- dicated you were going to. . . . . . . . . . Cattan: Yes. I was going to work on the extension rule, which we have, which is no good at all. D. Anderson: I'm talking about the existing Subdivision that were developed prior to that adoption of that ordinance. Cattan: You see the older Subdivisions have to follow existing rules and regulations that are inforce. It doesn't mean we have to follow the old one. No. when you change you have to follow that. D. Anderson: Yes, but on our new Subdivisions we required $35 deposit, and it goes into trust to pay for the cost of bringing the power in. But on the old Sub- divis ions we don't have that. The District is now burdened with the ex- pense, of running power into Subdivisions. I'm saying that maybe there is a method in which we could bring money into the District to pay for that initially. Stone: Like forming a little Utility District? Page 354 Manager's Report. . . . . . . . . . . . . . . . . . . . . . . . . .Continued D.- Anderson: Yes. A special assessment District for those Subdivisions and a re- quirement on each lot that they pay $3S.00. Cattan: We can change the extension rule because they have to abide with the existing rules. D. Anderson: Thats true. And that says you pay $35.00. AMMMMM Cattan: No. Thats only for Lakeworld. Loehr: The others are $50.00. D. Anderson: Okay. They pay $50.00 and it is costing us $3,000 to give power in there. Cattan: Lakeworld was the first one before we adopted that new policy. It was after b months. I'm working on the extension rule, and I've already prepared some. D. Anderson: But the rule cannot be retroactive. Cattan: Its not retroactive not on the people that already bought power. But will be on the new ones that come in. Waters: He is trying to get some money back on the old ones. Cattan: No, you cannot do that. D. Anderson: Oh, okay. Cattan: We use to charge $100.00 for water connection, now we charge $150.00. You can't go back. D. Anderson: What I was asking was,, was George not to investigate various means by �---* which the District could recover or finance the initial cost for power into a Subdivision? Stone: I thought this is what he was working on in that new policy. Cattan: The new extension you can change it. An assessment will govern the whole area. You can't discriminate just Sierra Meadows, and Prosser Lakeview Estates. Waters: In order to form an assessment District, the peo�!e d thiin _ -the District will can't. Cattan: Well the only thing that we can do is to change the extension rule. R. Anderson: * At this time you don't -know 1of no other .way that we can recuperate money from people who already have a house? D. Anderson: Well then perhaps could we go to someone else that might know? Someone who might give us an answer? Perhaps Paul Chamberlin. And if he doesn't know, perhaps he could suggest someone. Stone: George, can you propose that Question to Counsel, and see if there is something the District might do? Cattan: Well, I can do it the easiest way and that is change the extension rule. D. Anderson: What has happened to our contract with Truckee Sanitary District down there? R. Anderson: George, have you set up a meeting for you, Roy and I to meet with the Sanitary District? Cattan: No, I haven't. Loehr: I move that this meeting be adjourned. Waters: I second i t. Page 355