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HomeMy WebLinkAbout1972-12-05 Min - Board December S, 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 P.M. in the conference room. POLL CALL: Roy Waters., present; Rex Anderson, present; Duane Anderson, present; Henry Loehr, absent; Nelson Stone, present; GUESTS PRESENT: Mary Grayfish, Carol Crowell EMPLOYEES PRESENT: Ken Kraj ewski, John Craig, Bruce Grow Stone: The regular meeting of December Sth, will now come to order. Please note that all members are present, with the exception of Director Henry Loehr. He has been excused for 'Illness. The minutes for November 21st are the first on the Agenda. APPROVAL OF MINUTES FOR NOVEMBER 21, 1972 The President asked if there were any corrections, additions , or ommissions to the minutes. Director Duane Anderson stated that the minutes showed that he had voted during the discussion on Resolution No. 7221 - Grant Deed to the County. However, he was excused from that topic on the Agenda. The re- fore he could not have voted. He asked that it be corrected in the minutes. D. Anderson: Are these minutes amended? Or does this action tonight amend these minutes? Stone: The minutes in the master book will be corrected. Then it also will become a note on the minutes of this meeting tonight. The approval of the minutes has been moved by Director Roy Waters , and seconded by Director Duane Ander- son. Minutes be approved. Let's consider the bills next on the Agenda. BILLS FOR APPROVAL By THE BOARD Rex Anderson: Why did the ladder truck have to go to Berkeley? Paulus: We have tried to get the truck repaired locally. And haven't had much satis- faction. It is a hydraulic thing. The top controls, when the guys are work- ing from it, will go side-ways, raise or lower. And there is a good chance of getting into an accident. D. Anderson: Was this for towing expenses? Paulus : Ken drove the truck down. Waters : Is there a guarantee on that at all? Paulus: I don't know, it's beyond that Roy. They had the thing when I came here. D. Anderson: What I meant by the employee expenses, was this for time, overnight lodging? Paulus: No. He was going to Sacramento. His wife drove down to Berkeley from Sacra- mento. It took gas for the truck. Stone: When can we get it back? Paulus: Well, when I talked to him he said two or three days. I figured he was being optimistic. Then he s a.i d a week. So I imagine about a week. The parts have already been ordered. Waters: I move that the bills be paid. D. Anderson: I second it. Stone: It has been moved by Director Roy Waters , and seconded by Director Duane An- derson that the bills be paid. Page 359 Bills for Approval by the Board. . . . . . . . . . . . . . . .Continued Paulus : While we are on the subject of money: When we sold the land to Lakeworld we put it in a time deposit, with the understanding it would be used in the Water Department. We have some water expenditures here that I would like to reimburse the General Fund. The two show that the Donner Creek Job, we have about $3,200 down here for George Miller, and we will have another $10,000.,h fairly soon from Tom Spinella. Also, this McKnight Construction in Lassen, for payment on the Ponderosa tank. I think that it was a 4/5 majority of the Board to transfer the time deposit into the General Fund. a•••., Stone: Do we lose anything in the way of interest? Paulus : No. Because the big balance is $149,000 or $159,000. In fact this was due yesterday. The only time we lose something is when we decide we need some-- thing that hasn't yet cleared then we don't get anything for it. Waters: How is this that you want to transfer? Paulus: Well there is two time deposits. First, we have 10 o down which is $18,000 and I put that in. Because there is no sense in waiting around 30 to 45 days. I put the whole $18,000 in one time deposit. The balance which $849,000 for one year, we can't touch. Both of the other tanks have been paid in essence from electrical funds. Stone: At this time the Chair will entertain a motion. Waters: I can't understand what that will have to do with the bills. Paulus: It has nothing to do with it. Did you vote on the motion for the bills? D. Anderson: No, not yet. ROLL CALL: Roy Waters .., yes ; Rex Anderson, yes; Duane Anderson, yes; Nelson St one, „�, yes; Paulus: Okay. I would like to take the $18,000 from the time deposit and transfer it to General Fund for the payment of these three water expenditures. They a- mount to over $18,000. Waters: I move that we transfer the $18,000 to General Fund. R. Anderson: I second i t. Stone: It has been moved by Director Roy Waters., seconded by Director Rex Anderson that the Staff be allowed to withdraw the $18,000 from the time deposit and be placed into the General Fund. Are there any questions? Waters: What does Mr. Loehr's absence have to do with this vote now? Paulus: The Board's vote will carry, a 4/5 vote. It was due, rather expired yesterday. Cattan: We did not want to tie it up for another three months. Stone: Please call the roll on the motion. ROLL CALL: Roy Waters , yes; Rex Anderson, yes; Duane Anderson, yes ; Nelson Stone, yes; Stone: Now we will get into the next subject. I want to draw your attention to ROBERT'S RULES OF ORDER. In many places on this Board we have not been fol- lowing the rules. I have read the book thoroughly and I see at times that I have not been in accordance. For that I apologize. There are a few things we should correct. For instance I will relate one: The Manager and staff make up the Agenda. Consideration of the Agenda is suppose to come from you gen- tlemen and not from the President of the Board nor from the Manager. If you do not move, the consideration for an item will not be discussed at that meet- ing. Page 360 Nomination - President of the Board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stone: If someone in the audience has showed up early and has some business that might not be on the Agenda, or would like to change their place on the A- genda, you gentlemen should move that they be heard first. Whatever your desires are. There are a few other things here I would urge each of you to borrow this book for, and glance through it. You might even pick up a few things that I haven't picked up. Try this on for size. The next item 4 on the Agenda is Nomination - President of the Board. My term expires im- �--- W3� mediately on the election of a new president. If you will remember Resolution Duane '1 >No. 7222, states this District will elect a President each year. Anderson: Not necessarily a different one. Stone: You can re-elect the same officer, or you can get somebody else. May we have a motion from the Board so we can consider nominations for a President and a Vice-President? D. Anderson: You are saying we need a motion to consider Item #4 on the Agenda? Can we not at the beginning of the meeting approve all the items on the Agenda, then thereby dispense with a motion on each specific item? Stone: I think you can pick that up here Duane, right. Then you would only have to change if they were on the Agenda, and wanted to be heard first or something. D. Anderson: May I suggest that, just as we have roll call and minutes at each meeting, the first thing after roll call perhaps should be approval of the Agenda. Then that dispenses with having to make a motion on each specific item. Since we don't have it on this one I will make a motion that we consider Item #4, Nomination for President of the Board. Waters: In view of the fact that Mr. Loehr isn't here I suggest that we table it until the next meeting until he can be here. Rex Anderson: Is there a specific date for the end of the term, like December 1st, or January? Cattan: Yes. You see the new Board took over on December lst. D. Anderson: Since we made the ordinance we certainly can make exceptions to it. Stone: Oh yes but it is by Resolution. D. Anderson: Yes, by Resolution, but we can make exceptions to it? Stone: No. A new Resolution would have to be in effect 30 days. Waters: There is no reason why we can't table it until Henry Loehr is here. And I think that he should be here. D. Anderson: Frankly, I'm ready to make a nomination and vote right now. Stone: Will you produce the Resolution George? Cattan: There was no Resolution made, just a motion. Stone: Where is the notes for the meeting of December 21st? Resolution No. 7132. It would resolve that the Resolution be amended to read: Nothing in this Resolution shall include the re-election of incumbent officers. Did you •-- find Resolution No. 7132? Cattan: Yes. You read it. Stone: Resolution No. 7132 reads: Whereas if it is desirable with the office of President and Vice-President of the Board of Directors of Truckee-Donner Public Utility District be for a term of one year. To give each Board mem- ber an opportunity to serve. Now therefore be it resolved by the Board of Directors that these offices be for a term of one year. Page 361 Nomination - President of the the Board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Continued Stone: Nothing in this Resolution shall preclude the re-election of incumbent officers. Passed and adopted this 21st day of December, 1971. D. Anderson: Since you were elected on December 7th. . . . Stone: The Chair rules that if you gentlemen desire the election can be delayed because our regular second meeting of the month is held one day less than one year from the election. Duane Anderson: Okay. In that case I withdraw my motion, and make a new motion that we table this matter until the next regular meeting. Waters: I will second that. Stone: It has been moved by Director Daane Anderson, seconded by Director Roy Waters that the nomination and election of Board President be tabled or postponed definitely until the meeting of December 19th, 1972. ROLL CALL: Roy Waters, yes; Rex Anderson, yes ; Duane Anderson, yes; Nelson Stone, _ yes; Stone: I have one question. Does that foul up our meeting for that day? D. Anders on: I don't think so. R. Anderson: We elect the new president after the meeting. Stone: After the new president is elected, he will have to take office immediately. R. Anders on: Just make it the 1 as t item on the Agenda. Stone: Mr. Manager you can use your discretion in working up that Agenda for the meeting of the 19th. Cattan: If you desire we can put it at the end of the meeting. Stone: Well it would be perfectly legal. Because we still have two days before the one year enactment of this order. According to the Resolution we are dis- cussing I can legally hold office until midnight of the 20th. Okay, Let's go on with Item #5 on the Agenda, dealing with Resolution No. 7222 - Line Extension Rules Revision. RESOLUTION NO. 7222 - LINE EXTENSION RULES REVISION Stone: We will now deal with Resolution No. 7222, The Board, of Directors, Truckee- Donner Public Utility District. It amends Resolution No. 6701 to lift rules and regulations for electrical service, be it resolved by the Board of Directors of the Truckee-Donner Public Utility District as follows: Rule 15, page 25, paragraph 3, Distribution Line Extension. - Single Phase is hereby amended as follows: Cattan: This only applies to existing Subdivis ions , not to new Subdivis ions. The new Subdivisions already bought their policy. D. Anderson: How does that apply to the letter that we just received from Paul Chamberlin that all tariffs shall be applied equally throughout the District? A"W... Cattan: This- is taxes. These rules exist. We are just modifying, raising the prices. Duane , Anderson: Okay. So we are modifying an existing Resolution. R. Anderson: You're not going to make this retroactive? Cattan: No, we're going to make it retroactive. This Resolution does not apply to Subdivisions which are new. D. Anderson: We could say what it does apply to. Stone: I think what we would want to do is discuss each item with the Manager. What do you have George? The old Resolution No. 6 701? Page 362 Resolution No. 7222 - Line Extension Rules Revision . . . . . . . . . . . . . . . .Continued Cattan: Resolution 7115. When an applicant or representative submits a map for a Subdivision, or extension existing, the cost of distribution lines to serve the Subdivision will be formed by the applicant, whether overhead or under- head. Stone: This is for new Subdivisions that you are reading about. Cattan: Yes this is for the new Subdivisions. Stone: Let's break this thing down. George can you draw us something on the -board as we get into this? We can go through and clarify each paragraph.; Let me read them off first, then you answer our question. Resolution 6701 refers to two basic items: (1) A Distribution Line Extension, in single,phase power, which is the common household. (2) A Distribution Line Extension demands the three phase power. Dealing first with Rule 15, item #3., section A. which reads: An applicant shall guarantee a monthly minimum.charge of 5� per foot of line, plus the monthly $S.00 minimum. What do you mean under Section A with a thousand feet of line? Cattan: I have it worked out for 600 feet if you don't mind. If somebody is a cus- tomer, 600 feet away we are proposing that he should pay 5� per foot. That is 600 feet times 5�. That is $30.00, plus the $5.00 minimum. Stone: In this instance of 600 feet there must be a minimum of $3S.00 Cattan: Yes. You take a consumer that uses electric heating, his bill is $20.00 a month in the summer. In the Winter it is $50.00. Divide it by 2 and the average for the year is $35.00. That means that the difference is $15.00. 1n the-Winter he doesn't pay because his bill is $50.00. So we don't benefit anything. His minimum is $35.00, he does not pay $50.00 plus $35.00. Now in the summer we will receive from him $20.00, At the present we get 5 0. This 600 feet of line cost the District $1,569.00. The cost of the line, the cost of the transformer, and the cost of the service, you are spending about $16 0 0.0 0. You benefit from the cus tome r 6 months. You don't make anything even at that cost. Sierra Pacific has a different rule, they make them pay. for the line. Then when another consumer comes along, suppose he is 300 feet away, this fe l lows minimum would drop because already that line would exist. Stone: He is talking about Section B: When one or more applicants are connected to the original line extension during the contract period of an applicant, the manthly minimum charge will be revised. D. Anderson: Out of the $35.00 he uses, we pay $17.SO to Sierra Pacific, so that gives us $17.50 we are using to defray our costs, or whatever. Cattan: You have to get money to pay for that line. Stone: Would the alternative to Section A be an outright flat charge? Say $2.00 or $2.50 a foot? Cattan: I was thinking of Sierra Pacific, they make them pay for the line. R. Anderson: Which would be at the current rate. Because you couldn't set a fee? Waters: The construction cost of the line, why not? Cattan: To pay for the construction of the line, and when somebody comes he will be given the benefit. Let's look at it that way. D. Anderson: We have that in essence for the water, don't we? Waters: Yes. Cattan: No. Not for the transformers. What has been done in the past was that the REA funds were used to ran these lines to these Subdivisions and that-was not right. Page 363 Resolution No. 7222 - Line Extension Rules Revision . . . . . . . . . . . . . . . . .Continued Stone: The only question is then gentlemen, select a method here where it will be easiest on the man who has to foot the bill. What is the feeling of the Board? Cattan: To pay for the cost of the line is most reasonable. It would be better for everybody. R. Anders on: Would it have to be a Board decision? ANNOM Cattan: You can Five the Manager authority to arrange that we adopte, we already adopted it with Mr. Beavers. Where the customer paid 1/3 down, and the end of the first year the other payment, and the second year the third payment. You see if you run a pipeline, and you pay for a pipeline, and somebody connects to it, you have to be refunded. Waters: Is he going to request that refund, or are we automatically going to do it? Cattan: We will put that in his policy whenever he signs it. R. Anderson: What if this customer should sell his property, do we have to rum him- down? Cattan: In the event of transfer of ownership, the new owner shall be required to undertake the obligations and must sign a new contract. Stone: As I read it now then, Rule 1S, paragraph 3, Distribution Line Extension, single phase, which reads thus : The District will extend its single phase lines to an applicant on the 'following conditions An Applicant shall pay actual construction costs of the line extension. And this takes care of Section B: When one or more---applicants are connected to -the original line extension the construction charge will be pro-rated to the current owner. Then Section C is self explanatory: The applicant will be required to sign a contract, where line extension of distribution line is involved. If you are in agreement with Sections A, B, & C, as they were read, that takes care of half of that Resolution. Duane Anderson: Did everybody read the letter from Paul Chamberlin concerning- special tax zones? He says essentially that we really can't tax, place special taxes on anyone in a particular area. However, the other possibility was line extension costs, we could perhaps go into an Assessment District proceedings. One of the re as ons against that of course is that they are rather expensive. We go in and estimate how much it costs to run -lines throughout the Sub- division, attach engineering fees, and publication fees, and bond sale fees, and add it -to that price, and come up with the price, that each, lot is assessed. It comes out to be a $100 and that is what each lot is assessed. Alternative to that, to reduce costs is to write each owner and indicate to them to defer this type of cost, please pay $50.00 or something. And get an ,agreement from the property owners association that they pay an assessment in one lump sum $50.00 or $7S.00. We put that in trust to construct any line for some- body 600 feet away from an existing one. Cattan: I discussed with him this and I told him about the extension rule. He said that the best thing was to change the extension rule. Thats what we are doing. That is the simplest and the cheapest way. D. Anderson: I can' t see how it is simpler. It looks like a burden is being placed on the District in - trying to keep track of that. There is going to be arguments. People are going to come in here thinking they are paying $3.00 more than the guy next door. Cattan: Thats where the accounting departments should be able to; work it out. D. Anders on: I know they sh oul d. R. Anderson: You think that forming an Assessment District would be it? D. Anderson: It is an Alternative. I shy away from it. Page 364 Resolution No. 7222 - Line Extension Rules Revision . . . . . . . . . . . .Continued Stone: Well gentlemen we don't entirely like it. But at the present time it seems there is no other solution. Are we in agreement on A, B, & C? If so we will go donw to Section D. It looks to me like Section D could be scratched entirely from this thing. Because we have eliminated a minimum. Section E would remain in there? R. Anderson: No. You are saving he has to assume an obligation but there is none. The original---.,owner d ready paid for'it. t-•., Stone: Alright so we can scratch Section E also. R. Anderson: If you liked this idea that you presented to the Board, George why did you present this one? Cattan: Well this was the old one. Stone: Let's go on to Item 4, Distribution Line Extension dealing with three phase: The applicant shall be required to pay all costs incurred for a three phase line extension. The applicant shall also be required to place a deposit of 40 0 of an estimate as prepared by the District. The deposit will then be credited toward the actual_. final cost of the extension. The District 'shy l provide the transformers bank at no cost to applicant. Now questions on Section A, Item 4. I have one question. Why do you require three phase applicants, probably all commerical use. . . . Cattan: Yes. It is mostly commercial. Stone: Do you pay the 40 0? Cattan: Yes. Suppose we bent the line and he folds up. Then we would get stuck with the line. R. Anderson: You must guarantee 40 o before construction begins. Cattan: Yes. Stone: If the applicant does fold up, is this three phase line, which we will assume is in existence at the time, is that of any value to the District? Cattan: It may be in the future. We got caught in this mill on West River Street. It was an existing mill for three or four years. Then we installed the new banks, spent a lot of money and after six months they pulled all the Sub- station up. It makes it difficult. Maybe we could raise it up to 50 0. R. Anderson: What are we speaking of in cost? Cattan: It runs about $9,000 6-:-mile for three phase. We are not talking of long dis- tances here. Because the commercial areas are limited to where our main line passes through. Stone: Do you think that 40 o is fair? Cattan: Or 60 0? 1/2 of the cost. Just to make it not too difficult for the guy that is starting something? D. Anderson: The applicants should be required to pay all cost incurred, when? Upon completion of construction? Cattan: Yes at the completion of the construction service. Well he will have to pay all of the costs incurred. If he doesn't pay we don't connect him. I would suggest 60 o instead of 40%. D. Anders on: Another thing, since Paul will probably rewrite this , you might ask him for suggestions in securing- payment. He may have some ideas. Stone: In effect then, the 60 o would cover the cost of installing the line, and the cost of potential pulling it out, and the 40 o which we could recover , would be in transformers and hardware? Page 365 Resolution No. 7222 - Line Extension Rules Revision. . . . . . . . . . . . . . . .Continued. Cattan: The old one is the same except when it's underground. You see for hotels, motels , condiminiums we are covered in our policy. We do all the digging We di# all the trenches. We do all the work. We require 60 o deposit. when someone comes and says they want the power, we want to see the building up and be sure they have started working. R. Anderson: I think the 60 o is right. Stone: Okay then, Resolution No. 7222 will be postponed for how long? Cattan: Until the next Board Meeting. Stone: It will be postponed definitely until the meeting of-December 19th. , Cattan: The only thing I need is your approval for the GS-3 rate. I called Mr. Surprise and I told him that we cannot keep on with the rates. When we raised the rates I did -state to- ,..,the Board that the rates we are proposing would rise later on in the year. But now I find that -may have a rate increase of 25 0. So I don't see any reason why we shouldn't raise the rates of GS-3, which only applies to the mill. I worked out the cost and I find that we aren't making any profit from them. Stone: Are we losing? Cattan: Not losing, but it does' n't allow for capital expenditures, or anything. I showed Mr. Surprise the figures, I showed him what it is costing us,, and what Sierra Pacific charges us , and they agreed to the 10% raise being charged to them, effective December lst. Our profit for October is only 5 o for the whole area. Stone: I have a question George, is there any need actually for GS-3 rate? Shouldn't any commercial development be on one rate? Cattan: You see the GS-3 rate guarantees a minimum. Whether the Mill works or not they have to pay a minimum, which is about $600 a month. Waters: We aren't going to act on this until we have the Resolution are we? Stone: What he wants is a concensus of the Board before he goes to work on the Resolution. Cattan: That will be on Resolution No. 7223. R. Anderson: You would like us to act on this tonight? Cattan: Yes. On Resolution 7223, that our right to adopt a GS-3 rate to be in- creased another 10 0. Stone: Okay go ahead and work up Resolution No. 7223, and we will deal with it at the next meeting. Item #6 - Beavers Vs. Public Utility District. BEAVERS VERSUS PUBLIC UTILITY DISTRICT Stone: Okay, Beavers Versus Public Utility District and since this was a legal matter, the Manager will refrain from divulging any legal ifif ormation that might affect the case, and the Board will refrain from asking questions that he cannot legally answer. So tell us what it is all about George. Cattan: As you know Mr. Beavers accepted our Resolution No. 7006 early in the summer, regarding water. There were a lot of stipulations. There are too many things that are too legal but one of them said that: Said payments were made by defendant resulting from threat by the plaintiff and recordation for said Subdivision maps would be with held until said fees be paid. The case I think, is coming out sometime in January. They are going to look into it, an and I may be involved in it. The attorney for Mr. avers, Brennan, Harrison & Yun, said that in a matter to simplify the hearing of this matter they have prepared stipulations. Perhaps after we have had the opportunity to review this material appropriate divisions, additions & notifications can be agreed upon. We note that previously you have corporated to us in the production of material from your plants without the necessity of a motion to produce. Page 366 Beavers Versus Public Utility District. . . . . . . . . . . . . . . . . . . . . . . . . .Cont.inued Cattan: We ask that you supply us with one copy of the contracts between the District and Olympic Heights promoters with a party known as Popovich. Thformation in our files indicate that these contracts-that were entered into about the same time as the agreement in question. We feel these contracts may be ma- terial to the issue in dispute and that manner in handling the responsibility of the development of water storage facilities in these two instances may give some indication of District policy. We of course will pay the cost of pro- ducing the copies. The contract we entered with Mr. Beavers was on the loth of April, 1962. And from the letter of his attorney they think that Olympic Heights wasn't developed in 1962. So you have my answer to Mr. McDonough. This proves that the Developer of Olympic Heights did install 7,700 Linear feet of six-inch pipe. And this took place in 1959 and 1960. Not in 1962 when the Beaver's contract was signed. I did mention to our attorney that in 1962, the Developer of Prosser Lake Heights did install a well, and con- structed 210,000 gallon tank. In the end there I said please note that the - Subdivider of Prosser Lake Heights delivered to the District a deep well pump, 250 gallons, a storage tank of 210,000 gallons, and correspondence began early in 1962, the same year of the contract with Mr: Beavers.- Their own attornies had their own information but this actually will help us. I'm glad than he did raise this question. We sent copies of the contract to Mr. Mc- Donough, our attorney. We sent him a copy of contracts of Olympic Heights , and Prosser Lake Heights. This closes this matter as far as I'm concerned. I can't divulge anymore information because we are in litigation with Mr. Beavers. I think this is far as I can go tonight. R. Anderson: If this extends into a period of time, and say you have retired as the Manager of the District, can you still be retained to represent us? Cattan: Ye I think so. I would be leaving I suppose when this case is finished. Stone: Okay, let's go on to the Heidrick Report. ,r,_, HE I DRI CK'S REPORT Cattan: You all have a copy of Heidrick's Report. It appears to me that it is a good presentation. He is an expert on rates. D. Anderson: Who was asking the questions? Cattan: The Federal Power Commission ask the questions. Stone: I believe that the Sierra Pacific Company at the time, is already realizing the 8% on their investment, prior to assessing the District's 36%. D. Anderson: That was one of my questions. I wasn't quite sure whether he was through this analysis coming up with their making money on us with the proposed 35%, and today your saying they are making it on todays rates. Stone: Prior to the 36%. The study period includes one year prior to the adoption of the assessment of 36%. Cattan: What I understood from Martin McDonough and from Sierra Pacific,- that- the Federal Power Commission had accepted 80% of the Sierra Pacific analysis of cost. D. Anders on: 80% of what? 0"0' Stone: 80% of the 36%. Cattan: The only thing to do is wait for the ruling of the Federal Power Con-mission. Mr. Martin McDonough ask me to join him to go to Washington, and I excused myself. I said I was very busy. He thinks that my presence would help. Stone: Does he plan on taking Heidrick,with him? Cattan: Yes. He said maybe I would make a decision if I went to Washington with them. Waters: I don't see how the Federal Power Commission can do anything of that nature at all. They are suppose to represent the people. Page 367 Heidrick's Report. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Continued Stone: The Federal Power Commission has made up 85 0 of the appointees from which you can gather your own conclusions from that. D. Anderson: Getting away from the issue, should George go to Washington or not' Cattan: He insists that I should go. I excused myself but told him that I would think it over, and present it to the Board. Duane Anderson: Well we have relied on his judgment for some time now, and I feel that we should continue to do so. Waters: If he requests your presence then there isn't much we can do about it. Stone: That is right. I think that the decision is pretty much up to George. I would urge you to go George. If you can talk them out of 2 0, you're saving the District $200,000. D. Anderson: We are all in agreement that you should go. Stone: Okay. Let's go on to item #8 - Andregg Lewis. ANDREGG LEWIS Cattan: Do you recall about 3 or 4 months ago, I submitted to you Andregg's prop posal for the Donner Creek pump area, they need a road of access, and those two pumps are in the way. The first pump that low down, they can just pull over it then have a big manhole. But the other one has to have a new hole rebored, new casing. At the time the Board were in agreement that they would not stand in the way of progress so Mr. Andregg Lewis could develope this area. He is going to have a gas station, motel, restaurant, and stores. And he will pay for all expenses, such as engineering and pipelines. Nowe before he proceeds too much farther he wants a letter from the Board. So I wrote a 00 draft letter. I will present to the Board this letter, and see` ,if you all agree. Nelson will read it to you. Stone: This is the draft of the letter to Andregg: The Board of Directors in its regular meeting of December 5th is willing to approve your Deerfield service station project. So that you may be able to gain access to Highway ,89 as shown on your plans dated June 2 3rd, 1971 and March 10, 19 72. The approval of the project will hinge on an agreement with all costs involved, will be borne by the Developer. These costs are as follows: (1)- Contract pre- parations by Paul Chamberlin. (2) Engineering plans by you at your expense. (3) Any and all requirements that involve the relocation of buildings, pumps, manholes, switching and elementary equipment, and sizing and relocating or upgrading of immediate pipelines. (4) The relocation of existing power lines. (5) Fees incurred by us to involve our water consultant, Dan Cook Associates. Dan Cook & Associates shall check all plans that pertain'to our wells and his reccomendations shall be considered final. It shall be your responsibility to obtain all approvals necessary- through all involved state and local agencies and through the Bureau of Sanitary Engineering or the Department of Public Health. Waters: I suggest that we contact them, and if they set themselves straight with the Health Department, we will go along with i t. Cattan: That is what my letter says. He has already been in contact with them. Rex Anderson: He has approvals for his plans? Cattan: No, his plans are not approved yet. He will get approval for his plans yes. R. Anderson: I think that if there is any chance of his contaminating the water, no matter how much assurance you can get from somebody, it sounds like the Health De- partment thinks that the locations is proper. Cattan: I somehow feel that the Health Department is not going to approve it. Well, I will give them the discussion that we had, and wait until we can see what will happen with the Public Health Department. Page 369 Manager's . Report Stone: Okay. What do we have for the Manager's Report? Waters: What are we doing about Hilltop Lodge? Cattan: I have good news for you. Somebody bought it. We called Paul Chamberlin and he gave us the news. Who was it that bought the land Tom? Paulus: It was Robert Kent. Our attorney asked Kent if he was aware of the re- strictions when he bought the place. Apparently he was. He did apply for power so that he could run the ski hill. Right now he is working on--the restaurant because he thinks there is going to be more money in that than in the ski area. I will get a hold of him by the next meeting, and have something then. Stone: Okay. Is Mrs. Crowell in the audience? Mrs. Crowell stated that she had been a renter in the Hars ten Apartments and was overcharged on her water and electricity. The Board questioned the legality of this and,16t-md that the resale of electricity is not allowed under Resolution 67-01. The overbilling was caused by the owner of the building, billing his tenants -after receiving the utility bills which are in his name. The Assistant Manager was asked to see ihto_�this_ problem with Mr. Harsten and report the results at the ensuing meeting. Stone: Now the Chair will entertain a motion that the meeting be adjourned. The Manager asked that we go into executive session to discuss personnel matters. D. Anderson: I so move. R. Anderson: I second it. The meeting of December 5, 1972 was adjourned by the President, Nelson Stone at 10:30 .- P.M. Mr. Stone excused the secretary, and asked the Officers and Directors to remain for the Exe cut ive Meeting. NELSON STONE PRESIDENT OF THE -BOARD Agawam BARBARA SPENCERP RECORDTNG SECRETARY Page 369