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Home My WebLink About1973-01-02 Min - Board January 2, 1973 The regular meeting of the Board of Directors of the Truckee-Donner Public Utility District was called to order by President Roy Waters at 7:30 P.M. in the conference room. ROLL CALL: Rex Anderson, present; Nelson Stone, present; Duane Anderson, absent; Henry Loehr, absent; Roy Waters, present; GUESTS PRESENT: Jeanne Sollen, Mr. Moore EMPLOYEES PRESENT: Ken Krajewski, Pete Silva, Bruce Grow, John Craig SIERRA PACIFIC REPRESENTATIVES: John Saibini, Frank Giovannoni Waters: The first regular meeting of the Truckee-Donner Public Utility District for the year of 1973 will come to order. Please note in the minutes that Mr. Loehr and Mr. Duane Anderson are both excused because of illness. Now, ap- proval of the minutes of December 19, 19 72. APPROVAL OF MINUTES FOR DECEMBER 19, 1972 Stone: I have read the minutes and have found them okay. Waters: And discrepancies, ommis s ions, additions that you might wish? We will enter- tain a motion that they be accepted. R. Anders on: I so move. Stone: I second it. Waters: It has been moved by Director Rex Anderson, and seconded by Director Nelson Stone that the minutes of the December 19, 1972 meeting be approved. Can we have a roll call on that? ROLL CALL: Rex Anderson, yes; Nelson Stone, yes; Roy Waters, yes; Waters: Bills for approval by the Board. BILLS FOR APPROVAL BY THE BOARD Stone: What is the Radar Engineers, Tom? Is that a supply outfit? Paulus: Yes, the name is a little misleading. I think we bought some guide wire. Waters: May I have an explanation for this Western Nevada Supply metal cutting saw? Paulus: This was for the Water Dept: , if there is a break they have to cut it on each side whereas before we have always had to run-Ammi a welder. So we decided to buy a saw. It is a labor saving device. I--think it will prove beneficial. Waters: Is there any further discussion on the bills? R. Anderson: I move that the bills be approved. Stone: I'11 second that. Waters: It has been moved by Director Rex Anderson and seconded by Director Nelson Stone that the bills be paid. May we have a roll call? ROLL CALL: Rex Anderson, yes; Nelson Stone, yes; Roy Waters, yes; Waters: I would like to excuse myself from an error that 1 made, prior to the start of this meeting. I would like to welcome you people that are here. It won't happen again,. I am going to do a little jumping on our agenda. Fuel bids are to be opened at 8 O'Clock and we are running a little fast. So we are going to jump down to Item #5, Resolution No. 7222 for approval by the Board. I think this was discussed on several occasions by the Board, correct? Page 1 Resolution No. 7222 for Approval Cattan: This was approved except for the rewording. And we reworded it and I think it should be good now. Waters: Have you read it? Are you people in accord with it? Or do you think we should have a full Board to vote on the Resolution? Stone: Resolution No. 7222, reads as the Board discussed, I believe the major change was the gaining of a 60% deposit instead of the 40%. Cattan: We originally put 40% and somebody asked for it to be raised 60%. R. Anderson: Do you think that this would affect anyone at this time, if we were to wait until we had more of the members here? Waters: Do you feel as though you shouldn't vote on it? Stone: I think we can vote on it. We discussed it a month ago. In fact the minutes may show that we approved this. R. Anderson: I don't think Henry was here. He hasn't been here for the last three meetings. So I don't believe he has been here to discuss this. Stone: I move that we go ahead with the approval of Resolution No. 7222. R. Anderson: I' ll second that. Waters: It has been moved by Director Nelson Stone and seconded by Director Rex An- derson that Resolution No. 7222 be approved. May we have a roll call vote? ROLL CALL: Rex Anderson, yes; Nelson Stone, yes; Roy Waters, yes; Waters: Now we come to Item #6 on the Agenda, Resolution No. 7301 - Lakeworld Easement. r-- RESOLUTION NO. 7301 - T- LAKEWORLD Cattan: It is nothing very important. We have an easement from Sierra Pacific for this line that goes to Beacon. It was surveyed recently by Cranmer Engineer- ing, and they found that the easement wasn't in the right place. So they corrected it. And this tonight is just a correct--dibn -on-.an- easement. The deviation is not very much. It is just slight. Actually what we really have is that line that runs to the Beacon, we had an easement when we bought this line from Sierra Pacific. R. Anderson: Do we have a line up there? Cattan: Oh yes, going to Beacon. Waters : Is there a line in the original easement as noted in here? Cattan: In the orginal yes. R. Anderson: So actually it is just rectofying an error? Cattan: Yes. Just rectofying an error. I wrote to George Assuras , Sierra Pacific, and he indicated to me that the easement had been constructed at Truckee- Donner P.U.D. Mr. Assuras reads: In preparing the final subdivision map, Tahoe Donner Unit 8, we find that the direct location on easement granted to Sierra Pacific in 1932 doen't agree with the location of the pole line. I would like at this time to clarify position of this easement so that certain lots within Tahoe Donner, Unit 8 are not encumbered by this easement. I am enclosing a copy of the subdivision map showing the actual location of the pole line and the record location shown in red. I have prepared grant deeds wherein Truckee-Donner Public Utility District can return portions of the easement by their former agreement and simultaneously there to will be granted new easements along the entire route through "Tahoe Donner, Unit 8'T. You will note that the deed granting the easement has been approved by the owners and executed by their holding agreement with Western Title Insurance Company. I have enclosed a copy of that deed for your reference. I have also enclosed the original of the deed to transfer the existing easement back to the grantor. Page 2 Resolution No. 7301 - Easement Lakeworld. . . . . . . . . .Continued Waters: Well, who made the error George? Cattan: Sierra Pacific in 1952. R. Anderson: He had a better answer than I did I so move that we adopt Resolution No. 7301. Stone: I will second that with the advisal that in the third paragraph, Be it further resolved, that it reads President and Ex-Office Secretary, that it be changed to President and Ex-Officio Secretary. Waters: Moved by Director Rex Anderson and seconded by Director Nelson Stone, with reservations. In prior to the signing of this, it will have to be corrected. I would like to have a roll call on that. ROLL CALL: Rex Anderson, yes; Nelson Stone, yes; Roy Waters, yes; SIERRA PACIFIC POWER GO'S PROPOSAL Waters : At this time, all you people know that we are in the process of possibly leas- ing our facilities, our electric facilities to the Sierra Pacific Power Company. They gave us a proposal at our last meeting on December 19, 1972. And they are here again tonight to answer any questions that we would like. And here representing the Sierra Pacific Power Company is John Saibini, Vice-president in charge of operations, and the local Manager for the North Tahoe District Frank Giovonnani. Do you people have any questions tonight? I would like to know, as you indicated on the 19th of December that you would furnish the District or the people of the District with a copy of your entire prospectives to the District, and you will still do that? We would like to have them available for the people at the District office. Saibini: We would be glad to. If you will indicate the number, we can get them for you. I might mention we will furnish the ones with`the two existing contracts. We only use those -as an indi cation"vof _-what we have done in the past. And perhaps your contract will be different than that. We will be glad to furnish anything that you might request. I might also mention that we furnished George with a Financial Statement a little different from the one in the proposal, in that we tried not to allocate your expenses. We tried to show it strictly on an income basis. Stone: Well this might answer the question that I had. On page 1, section 2, we have to come to an understanding on what gross revenues mean. I couldn't corrolate as to what Tom has as Gross revenues. Saibini: In the statement to you we proformed the operating revenues of the Utility District at the present rates that you are now to get, in effect, for the 12 months of 1972. It came up to $680,000. We rounded that off to $700,000 and proposed that any revenues beyond the $700,000, we would give you 2 0 annually. R. Anderson: You are speaking of the operating revenues? Saibini: Yes. The gross operating revenues. Stone: Does the gross revenues mean gross receipts from all kilowatt hours that we might sell? . Saibini: Yes. It would be our gross receipts. We just use the number $700,000 to rough out the $680,000. Anything above that, the 2 o would be applied. R. Anderson: The information we were to get from Paul Chamberlin, the questions we had, he is not going to be able to get to us until the next meeting? Cattan: Yes. He has already written to the County regarding the streetlights. He sent me a copy of the letter. Saibini: What we did the first time, is indicate your costs for the Warehousing, the streetlights , and water pumping. In the second statement we did not show them as costs , allowing you to allocate them as you saw fit. We did in- dicate your liabilities, as your note to REA and the note you owe to Sierra Pacific. Page 3 Sierra Pacific Power Co's Proposal. . . . . . . . . .Continued Saibini: The cash available of $56,300 versus the $31,700 indicated in our pro- posal. Those are the differences in the two statements. In the re- vised Financial Statement we did not show the cost of the utilities, the cost of power, streetlights , or water pumping were not shown. The applied accounts are the same. We only took out of that the $42,000 for the debts , loans. Leaving the $56,300 versus $31,700. Out of that $56,300 you would still have some money depending on what kind of ar- rangement made about the streetlights. Waters: Well at our last meeting there was some question of legality with our attorney Paul Chamberlin- about the transfer of public lands. How far you people went into it withthe State of California, I don't know. He is suppose to give us an answer at our next meeting, Saibini: Dick Campbell is suppose to have our attorney and Mr. Chamberlin get to- gether and hopefully come up with something soon. Cattan: Paul Chamberlin wrote to their attorney December 20th. And both of them are working on it. R. Anderson: .Are you,--going--to-have any'Linterest .in_the' Warehouse-at-all? -I don't see any- thing in here about i t Saibini: We would buy all your stock and have no interest in the building. That would probably be used for water operation. We would lease this building and let you have back all the space you need. Waters: How long would you lease this building? Saibini: Well, our proposal was on a year to year basis. This would let each party allow for whatever may happen. We would maintain it, and carry on it in- surance and furnish all utilities. Waters: Would that be advantageous to you to have your headquarters at Kings Beach and also down here? Saibini: The Headquarters would remain in Kings Beach. We would need some kind of office facility in the area. Whether it be here or somewhere else. We did not want to hbx the Utility District in on a long term arrangement. We feel that we will need an office in Truckee 'all the time. We are looking for an increase of 5,000 customers, and that justifies for an office in Truckee. Waters: Well, I think the members of the Board feel they would like to have this revised statement attached. If it won't be too expensive to you. Saibini: Just tell me how many copies, or maybe you can contact me and let me know. Cattan: Maybe 100 copies will do. Saibini: We can start with 100 and increase the number as we go along if necessary. Waters: Does anyone else have any questions? Stone: On the first page, paragraph 2, I heard one of the Directors Question the 2 0 annual increase in gross revenues, is this an acceptable figure in dealing with amounts of money like this? Saibini: This is based on the two original contracts that we have, the TCID and Haw- thorne. And this 2% seems to be the number that is applied whenever there are franchises in areas. In areas where we pay franchises, we pay 2 0. Waters: Can you offhand tell us if there is much of an increase in your other two Districts that you have taken over in Fallon, and Hawthorne? Saibini: Hawthorne is not showing a big increase. The TCID system has increased to some extent. The city of Fallon is expanding, but the area in general may not be customers of ours. I might mention that the North Tahoe area is a fast growing area. A lot of the growth has been out of the Tahoe Basin. Page 4 Sierra Pacific Power Co's Proposal. . . . . . . . . .Continued Waters : Is it frightening to you people when you can't bring any power in? Saibini: The only place we have any problem is within the Tahoe Basin. We have no power troubles anyplace else. Except inside the Tahoe Basin. Waters: You haven't been able to bring any transmission lines in have you? Saibini: In the Tahoe Basin, no. As you know we have a 300 mile transmission line under construction in Yerington which is a prime power source, we proposed one into Idaho to be completed in 1978. We have a 110 mega watt power plant under construction, completion in 19 75. So the power supply doesn't bother us. We seer it-_through 1980, that we will be in pretty good shape. Waters: Do you mean that you are going to supply this area from those facilities in Idaho? Saib ini: It is part of the transmission system. The Truckee area is connected through our system by 210,000 volt lines , they run right behind us here. Our supply to this area is not a problem. But our supply into the Tahoe Basin is, only because of right of way. The only problem there is that we are not allowed to build a line. Not that we don't have the proper facilities. Stone: Page 2, paragraph 3, Improvements to the System. The company will be obligated to construct all additions at its own cost, (as may be required) . I would like to clarify that term, as may be required in parenthesis. Saibini: There will be two types of extens ions. one would be the New Business Extension to serve the customers , these would be set forth in our rules & regulations and they would be on file with the Utilities Commission. The other would be what we call System & Improvements, this would be back up facilities. It would be required because of growth in the area. In order to give you some control over what we did, and what money is spent in the area. The New Business Extension would be covered by rules of the Utility Commission. r-� Stone: One more thing, what position would we be in under this sort of arrangement in the State of California, requiring Undergrounding. We as a public entity don't have to do In the event that the facilities were leased, this would be pretty important, because it would double or maybe triple expenditures to have to put everything Underground. Saibini: We would of course have contributions to our expenses. Improvements in Cali- fornia in transmission lines do not have to be underground. You are cer- tainly right that is a point. In County, I don't know whether you are under that, we would of course have to research that. Regardless of what it is I think that before not to long, Undergrounding is the name of the game. In Reno about 80 0 of our work is Underground, where only 2 years ago it was 30 0. Cattan: All the facilities at Tahoe Donner are Underground. When it comes to con- dominiums, you cannot sell to them unless it is Underground. Saibini: Well:; I think within the next couple of years everyone would be required to go Underground. Even the Public Utilities in the State of California. R. Anderson: Would this come under Improvements to the System? Saib ini: It would be two types again, one would be facilities to serve customers , which we call New Business Extension, under back up facilities would be facilities improvements. Stone: Page 2, item 5, say we showed up with 3 employees that we could not absorb _ in our regular Water Dept. Do you forsee that your Company could place our employees 'so that they could not leave this place? Saibini: If they were able to be assorbed into the electric operations in the area we would absorb them here. If their classifications were such that they could not be placed, we could offer them a j ob if they were willing to move to Reno. Page 5 Sierra Pacific Power Co's Proposal. . . . . . . . . .Continued R. Anderson: What_.assurance do these employees have of remaining here in the Truckee area? Saibini: We will not transfer any employee against their will to another area. They are free to request any area they like. In our contract we cannot force any- one, they must move willingly. His seniority, would go into our system the same as though he had always been working for us. Waters : Is his seniority right also in his retirement? Saibini: It picks up his retirement, sick-leave, vacation and etc. Waters: You will pick up his retirement without cost to the employee? Saibini: Yes, we discussed . all this with Tom and George. This is the same agreement that the Union has agreed to in other cases. Stone: I notice that on page 3, you felt that you had to decrease the periad3 frc.m which there was to be no changes from the electric rates. In the other contract I think you had a 3 year period. Saibini: We did the 3 year thing in Nevada. And we did get the agreement of the Com- mission. They very reluctantly agreed to it. The California Commislion refused to go beyond a year on it. Waters: Did you have difficulties with the Nevada Public Utilities Commission in your acquisition? Saibini: There was this 3 year thing. But there was no other problems. Cattan: On page 3, I guess the Board will be the one to decide whether it would be advantageous for the public to have your rates or ours for a period of 12 months? Waters: It would be impossible for the customer himself to decide what rates he should have I just don't see how he could. Saibini: In other areas we took it from each individual customer. He had the choice to either stay on his present rate or adopt ours. Waters: You went to each customer? Saibini: We worked it out for each customer, whichever was more beneficial to him. All residential customers fell under one situation, the commercial ones were the ones that were done pretty much on on individual basis. Stone: Thats all the Questions that I have at this time. Saibini: As I see it, I have two things that I have to find out about for you. Other leases like this that have occurred in California, and the question between Mr. Chamberlin and our attorney about the legality of the lease. Are these the only two questions outsta-ding? One other question that I have, do you want us all here on the loth? All or anyone of us can come to the meeting, and answer any questions you might have at that time. Maybe you want to contact us later? R. Anderson: I kinda feel that at every meeting we should have someone here representing Sierra Pacific. Someone to answer questions we have. If no one is present at the meeting, then all we have to do is wait another two weeks for the answers. Stone: Perhaps Mr. Campbell could come since Mr. Chamberlin will be here. Saibini: Okay, then Mr. Campbell can be here. Cattan: I think we have all the figures , it is now just a question of legality. Waters: It was very nice having both of you gentlemen, Saibini: Thank you. We will have Dick Campbell here the next meeting. Page 6 Bids for Fuel Waters: Okay, we will now take Item 4 - Bids for Fuel. Cattan: There are only two bids. Waters: Alright, our fuel for the coming year was put out to bids on December 4, 1972. And we have two sealed bids here. The first one is from the Standard Oil Company. Will you please open it George? Cattan: Standard Oil Company, Chevron hearing, minimum 2,300 gallons. Maximum 4,100 gallons. Today's posted 400,000 over.. .201. Maximum price .161. Waters : The next bid is from the Atlantic Richfield Company. Cattan: Arco Gasoline, .2375, Arco heating oil .1525, including but not permitted to any tax imposed. What is the other price for the gas? Paulus : 400 is 30 and over 400 is .245. Waters: Apparently Arco is the cheapest bid. Paulus: Well--we-better read it and see. I would almost like to disqualify Standard right off the top, but s ince there is only two of them I think we should read them over. Because with- Standard we have run out so many times, and when-we run out, the guys have to go to the service station and pay twice the price. They have been very poor about the service. Anyway we'll review it. Waters: We have the right to do that if we want. We can be objective at anytime. Paulus: Well, lets take a look at them. Arco's price looks cheaper anyway. R.-Anderson: We need a motion on that don't we? Waters: We will require a motion, that we accept the lowest bid, if there are no noted irregularities, after the Management reads the contract. R. Anderson: I so move. Stone: I second i t. Waters : It has been moved by Director Rex Anderson, seconded by Director Nelson Stone, that we accept the bid of the Arco after teview3hg.-. by the Management, for any discrepancies in it. All in favor? Everyone said Aye. We will go on with the Manager's Report. MANAGER'S REPORT Cattan: I have revised this memorandum on revenue to give you the month of November which we did not have. Tom just got the final figures last Friday. It shows .you for 1972 how our revenue is going down. And this is due to the increase in rates by Sierra Pacific. We understood that it was 36.2 o but I have gone more deeply into the study into the billing, and we find that they have the fuel clause which added another 6166 if you read it, the assumption-...4", that our rates were raised 36.2% as far as rates are concerned. But not- when fuel clause is.taken . nto consideration, which amounted $2,370 for the last billing. The fuel adjustment billing amounts to about 6%, this makes the total increase 42.3 0. And now they have come up with more increased figures. Since the time -they have asked for this rate increase, they them- selves, their purchase from PG&E has increased. So it is going to be added '-- to our bills. So what I am going to say isn't going to affect the Federal Power Commission. So we are going to be stuck with about 3S%, from all the documents that I have gone through. We don't expect, 20 or 30 0, st i more like 35 o and above and we can't live with that. Before some settlement is reached I propose that the rates be increased for D1A, 10 0 ; D1B, 15 0 ; GS1, 25 0, because we did not raise it much the last time. GS2, will be 10 0, and GS3 nothing, because we already raised them from 10 o and now we got 20 0. Page 7 Manager s Report. . . . . . . . . .Continued Cattan: We have got to have these rates, so that we can meet our payroll. I'm afraid that we will not be able to engage an Electrical Engineer, unless you have the funds. It will be working.on these rates to have them ready for you, but that is what will approximately be the raise. Sierra Pacific rates already have been increased for California last week by 7%. The Federal Power Commission has approved 7% for their own sales in this area for California. For Nevada, they had a 15% increase last year. Stone: That becomes effective next week doesn't it? ,... Cattan: Yes. Paulus : Can I intercede for just a second? On that first figure that he gave you on the first sheet, that is the operating report ending November. The first two figures across the sheet, the top figure is the revenue, the second figure is the purchase power. Not considering we are in a new year last year the revenue was $479,000. It has gone up a $100,000. This year counting November, it is $578,000. For the month it is $58,000. The power bill is $233,000. And what we paid this last month was $40,000. Now if you analize these figures a little further, the last month we paid out $5 8,000, $40,000 of that went to power. So there is 70� out of every dollar. Then we go back year to date which includes November and which includes three months of the high bills plus the 8 months of the previous bill, we had 8 mils per kilowatt. That figures out 51.7, and if you drop to the far left_ that $232,000 figure, we are paying 48.S� on every dollar. Right away we picked up 21�. That is just for power only. Now if you get down to net profit, during the month of November we netted $214. This was above all expenses. Now as you all know, you can't run a business on 4/10� pro- fit. It is just insane to even talk about it. The previous month it was 5%, that was bad, but this is just completely ridiculous. R. Anderson: Why did the maintenance more than double your estimated budget? Paulus : Anytime we have snow months it runs pretty high. The biggest share of it we always figure is operation. The guys don't work any construction, they work with tools in the garage and so forth. As you can see in the overtime we had quite a bit of minor things that has taken up some time. R. Anderson: If you estimate $1,800 and it is actually $3,300. Paulus: Well, it is an uncontrollable cost. It is something that you guess at. R. Anderson: And the Cons uner Account was over. Paulus: Well, they will all very a little. You can see that we estimated the power, I was optimistic, I added 30% onto it. And you can see we missed that by $7,000. So when you get to the bottom of the page, it is just completely off. However, looking at it over a long period of time, between the revenue and the purchase power, one is 2.1% and the other is off 1.9%. So they will end up fairly close. Cattan: As you can see from September how the percentage was 4%, 3%, August 4%, September 3%, October S% , November .4%, and December will be the same or less. This can't continue, rates will have to be raised. I can safely say that whatever happens at the Federal Power Commission, it is not going to go below 35%. R. Anderson: There is really no sense in sending you back to Washington then is there? Cattan: I talked to Mn -Martin McDonough. From all the papers I read we are fight- ing for something really little. It seems that the staff, that is the En- gineers for the Federal Power have already approved the analysis submitted by Sierra Pacific. Maybe 80%. So it is no good holding raising rates. We have to meet the payroll for next month. We may have to draw from Reserves. Money paid to us by Lakeworld for Powerlines. With all that money you have got to replace it. Isn't that correct what I am saying? Paulus: Yes, we put this into Time Deposit, then after we spend it, we go and re- imburse it. On the bills there you will notice that Sierra Pacific's figure in parenthesis which we did not pay, we paid the little ones and not the big ones. I don't think they are going to cut us off. When you are paying 70� out of every dollar, your into a serious problem. Page 8 Manager's Report. . . . . . . . . .Continued Cattan: If we leave the subject for water, the revenue from water according to Tom's figures from January to November there was a profit of $15,945. And you can expect for 1973 an increase because there will be more water connections for Tahoe Donner. We got a lot of money from Lakeworld as you can see on the top of the list here. We got in Time Deposit, $87,78S and another $21,300 and before June & July, Unit 8, 9, 10, 11 will be recorded, about $63,340. R. Anderson: But this money will have to go to hookups? Cattan: No. this money you can do with it whatever you like for improvement 6f the system. That is the contract which we had with Lakeworld. R. Anderson: Who put in the water lines? Cattan: They did. R. Anderson: Why couldn't we get the same kind of revenue on the electrical? Cattan: All new Subdivisions are paying for the lines. Waters : The only answer that we can possibly get from this is that it has been building up to this for the last 10 years, 20 years , and finally we get stuck in the face with it. We have got to do something. Cattan: You see, labor is going up every year, 7 1/2 o plus benefits. If you look at..the payroll, we have an increase of about 10 0. Waters: Labor has gone up about 20 o in the last four years. Stone: I don't think that we are arguing that we should not adjust the rates, I know what I'm arguing anyway, if we are in a bind, lets take out a revenue to see us through this binding. I feel that we have been deliberately manu- vered into this position, that we have to bargain. OMMM { Cattan: It has got to come from revenue, to meet the payroll and expenses, it can k come no other way. And it has to be done by raising the rates. Waters: Where would we get this money to pay these bills? Stone: We got $100,000 sitting down here in the bank, then I want to advise you that just before I came down here, a man from a well known banking situation called me regarding this property across the street. I told him how he would have 'to go about it. Advertising, and all. I told him that it was high, and that it would cost him at least $100 ,000 to get that property. And he said that there was no problem. Cattan: But you can not do that Nelson, it is not business like. You can't use sale land to make up for the cost of the price of electricity. The land as you know, money that belongs to the land is for the water. Waters: I think that your own economics is what manuvered us in this position. Stone: This District was first organized in 1927, to handle the power. After that the water came along. Cattan: Would this be an increase in billing every month? We said there was 42 0. Paulus: No. In gross revenue it has gone up 27 0 over the previous year. Cattan: No, no, take the last bill, the difference is 42 0. We are talking about $12,000 to $15,000 a month. In 12 months, $180,000 a year. R. Anderson: If we have all of these additional revenues coming in on water, why don't we have the same kind of moneys coming in on the electrical on the policies. Or should we change our policy? Cattan: We are, I am asking for a change in rates. R. Anderson: I'm talking about the policy to the subdivider, make him pay for it. Cattan: He is paying for it. Page 9 Manager's Report. . . . . . . . . . . . . . . . . . .Continued R. Anderson: Well, why are we seeing the revenues the same as the water if he is paying? Cattan: He is paying for the construction of line. You can't ask him to pay your bills. Paulus: This is strictly kilowatt hours sales, your bill, Teichert's bill, and so forth. Now when we get money for construction, we put it in Time Deposit unless we need it at the time for construction. At the end of the period if we can survive that long, as we have been able to do in the past, then we take what is actually accrued on the work order and apply it back. Then we can draw it out of the bank, and reimburse our General Fund. So it does not actually show as revenue. R. Anderson: What you are saying -,is- that we are actually receiving electrical revenues from subdivisions the same as we are from the water? Paulus: From construction, right. Cattan: The water got better, because we increased the connection fee from $100 to $150. R. Anderson: Right now our rates are just a few mils different from Sierra Pacific? Cattan: In some instances we are a few mils, and in some places we are higher. We have to have these rates in order to operate. Waters: Here is the situation, if you raise the rates now, you won't be able to walk down the street. But if you don't raise the rates you go under, so what do you do? Cattan: This 42%, you don't need an expert to work it out. This is a big chunk of money this 42%. Paulus : The same as you look at it a year, if you pay 70� out of every dollar, and 1 as t year you were paying 49�. Waters : If you people have read the papers yesterday, the REA has been dumped. The policy of:.the Administration. Cattan: The low rate loans have been cut back last.,week. On television they also said that the new rate was going to be 5%. The only thing that you can borrow from REA is this $100,000. But we are not borrowing it. We have $80,000 that is outstanding. R. Anders on: Can it be used for maintenance? Cattan: No maintenance, only new construction. Stone: Do you think we could have built new substations from REA money? Cattan-:, We can get money for the substations. I can get money for transformers from REA. But that would just put you more in debt. We already owe them $430 ,000. Paulus : If you borrow money on one substation which is $80,000 , in essence that 2 months paver bill. That is what it amounts to. Because you are paying 5% to get it. Cattan: We work from figures, Tom and myself, and we can't see a way out. Unless ""' you increase the rates. Stone: Let's not do anything until we know exactly what Sierra Pacifies new rates are and exactly what you find out in Washington. ' Cattan: I have some information on that, and you can't expect less than 35% on that. We have to meet the payroll, we: have to increase the rates, effective the 1st of February. The staff, when I say staff., that is their Engineering Department of Federal Power Commission, they have studied the reccommendation prepared by their staff and it is not good for the Utility District. Paulus: We have the same contract that has been in effect for 5 years and everyon's cost has gone up at least 6% a year. There .s 30% right there. And that is a low figure. Page M Manager's Report. . . . . . . . . .Continued Waters: In other words we have done alright for the last five years with the contract? Paulus: ' Yes. We have done real well. We have taken 20� out of every dollar _and that has been profit, and have put it back into expension, but you aren't doing that anymore. When you get 4/10� profit you are not going to expend anything on that. Cattan: -I will prepare this for you for the next Board meeting, and that will be ^"NOW& . when I come from Washington. Then I will have a very good idea of what is going to happen. In discussing it with the attornies, I find that the commis s ion may accept the staff reccommendati on and they may not. I hope they don't. Stone:- I can't for the life of me see how you can sit there crying the blues , say- we're broke over that, we're broke over this. I don't think we are that . . bad. Tonight, we had a representative from a company sitting here beside us that thinks we are the best thing on earth. And they will probably realize 30 0 off of their investment if we lease to them. So if they can get that, why do we have to be satisfied with 1 1/2 0? Cattan:. You can see with the memorandum I prepared that things are going down. And you have to brace up for the Union people when they come in April to visit you. I will get you a comparison for the next Board meeting be- tween the two rates. I will work on this assumption, and compare it with Sierra Pacific and you can see how it stands. Stone: I t m not saying that we don't have to raise the rates, but all I'm asking is that we get the full picture, and that we know the exact figure that Sierra Pacific is going to be tagging us, then we find out what their rates are. When you do get around to this rate schedule, could you keep one thing in mind that I think the whole Board would like, and that is , do what you can to stay under Sierra Pacific about 2 mils. I don't think that we should come any closer to their rates. Because this is the justification for the existence of the District. Besides being able to furnish water, but to furnish power at a little better deal. Cattan: :- The rate for the Mill, I can't do anything, they are higher than Sierra Pacific's rates. We cannot sell to them below cost. Waters: , Well, apparently you will have something by next meeting? Cattan: Yes, I will present you with something the next meeting. Waters: Do you have anything further in your report? Cattan: .- Mr. McDonough requested me to work on the Beaver's case again. I worked on it two or three days, and got some figures out to him. He may be able to settle the case without a trial. That is what he says. So I sent him all the information that I had. Thats all that I have to say. Stone: I have a couple of questions from old business. This thing about the bank, I told them that there was other people involved and told them to contact you. Cattan: Who is that? Stone: The people that are interested in the property across from us. Cattan: Oh yes. Stone: I had a question on the Disability Plan, Tom, you didn't say whether you did accept the additional offer? Paulus: I don t t remember which one it,was. I�x in tit- was the $90=4 00 a :m®nth. The man will be up sometime Thurs day, he will have to meet with everyone. They don't take a phys i cal, but they are asked questions. Stone: Is that coverage in effect now? Page 11 Manager's Report:. . . . : . . . . . . . . . . . . .Continued Paulus: No. If a guy gets hurt on the job and has used up his sick--leave, then he has no protection at all. Cattan: Coming back to the questions of rates , for the moment, not thinking of Sierra Pacific's Proposal, we have to see if we can run--this District and meet our financial problems. Waters: Is there anything further? Cattan: No, nothing further. Waters: Then I will entertain a motion for adjournment, then after a 5 minute recess, we will go into executive session. R. Anderson: I so move. Stone: I second it. Waters : It has been moved by Director Rex Anderson, and seconded by Director Nelson Stone that the meeting be adjourned. All in favor? Everyone says Aye. The regular meeting of January 2, 1972 was adjourned by President Roy Waters at 9:30 P.M. Everypme. was excused except the Board members, they remained for the executive session. ROY WA , P 0 RARBARA SPENCER., RECORDING NECRETARY Page 12 STATEMENT OF GENERAL FUND Bank Balance December 19, 1972 61686.91 Deposits 28,502.64 Approved,billings 50,391.40 Sierra Pacific (40,492.64) Tom Paulus Janitorial 60.00 Western Sub-Stations 6,000.00 (15,958.76) PAYROLL 12.-31-72 O.T. GROSS NET Cattan 825.00 670.30 Silva 119.72 742.92 613.35 Reynolds 68.40 646.00 S23.93 Paulus 637.50 506.53 Craig _ 56.24 603.44 430.77 Grow 41.54 540.02 446. 75 Archer 42. 88 525.28 425.61 Krajewski 500.00 396.23 Lopez 486.40 39S.83 Straub 19.64 436.99 340.42 Hutchinson Final 3S 8.40 339.40 Bacom 3471&'20 275.38 Craig 272.00 215.34 Nylund 2 35.20 19 8.9 2 Hicks 235.20 187.92 Spencer 67.60 59.91 ( 6,026.59) 348. 2 7, 55 Bank Balance 139204.20 BILLS FOR BOARDS APPROVAL Alpine Business Service forms 51.17 George Cattan 8.50 Bruning Division copy machine 47.2S Calif. Assoc. of Employees Ins, 511.50 �;--- Cal-Western Life Pension 319.95 Graybar wire 154.35 Lee Bros. Car lease 100.00 Lando Elec. 8.78 NCR Annual maint. agreement 140.30 National Notary Assoc. 1.S0 Joe's Truckee Auto Repair 231.80 Pacific Telephone 12.60 RTE Transformers 3,0 87.00 Rockwell Mfg. Co. Water meter 182.31 Tahoe Truckee Agency Ins. 59.00 Tom's TV 20.00 Vail's Pharmacy 20.6S U. S. Leasing 25.26 Westinghouse 37.80 Western Nevada Supply Metal cutting saw 367.50 Radar Engineers Elec. inv. 247.03 Western Hardware & Tool 74.23 Martin McDonough rate case 163.86 O'Hair Supply Water Dept. 141.83 Nevada County Land assessments 1,4 7 7.0 3 Wedco 16.92 (4,451.99) Balance after payment of the above billings .830 752.21 Page 13 U) icy 4-) rd 4-) r-4 •IJ U (1) 0 U u1 (a (1) 4-) U - 9 rti 4-) O TI a) a)-r-I -I-►rO r, •r--1 r4 O �4 Ul U"A a) z 0 4 >1 ul a) rd •I) �4 4-) •rl -IJ dP•ri • a) 41 N ••r-I r • Z 4J rQ O p U U •-) Ul 4) .. 4-) �"''.,r Ul O.0 r-I �''.r z U•rl rd r-4 O zr O U P•rI 4-4•rl N M O UI rl U O•rl l0 E-+ rd O z :j r-I N �4 O U p ro 0 r-i O p 4-r-I U co 3 (ri U •rl O �4 rd 4-) (d 44.r--i O a) � 0 a 4-) -) 4-) A o w O i�-I a)LH -1-) U) U 4-) Q) U ul O 44 N • (Y r-I O •IJ cd Z O • U 0 w a) 9: Ul z 4 -r-I I:i rd-r-I rd-r-I•rl ro a) Z w r-I 4J Ul •r•I 4-) rd N � Z 44 O P (1) �r- >4 r-i O U) A p 4 z O 0 z r-I 4-) U .IJ (1) O 4-)44 rd 4-) rd rd-r-I >i N a) O cd E-+ 4J z 4-4 ul O U) "A•ri a) x i4 U 9 a) aJ a) X a) 04 a) Ul (d �4 4 l4 a) 3 (d O O a) U -r-I 9 UI SDI 4 O rd 0---. 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This grant relinquishes an easement granted in 1932 for the Beacon power line, which has been found to be in error. BE IT FURTHER RESOLVED: That the District does hereby accept the easement for the actual location of the Beacon power line as granted to the .�.. District by the Western Title Insurance Company as further described in Exhibit "B" , attached hereto and made record thereof. BE IT FURTHER RESOLVED: That the Board of Directors of the Truckee-Donner Public Utility District does hereby authorize its President and Ex-Of- f cio- , Secretary to sign all documents necessary to culminate this transaction. Effective Date: Passed and adopted by the Board of Directors of the Truia- kee- Donner Public Utility District at a regular meeting thereof duly called and held in the District on the 2nd day of january 1973 by the following vote: AYES: Rex Anderson ► Nelson Stone P Rov Waters NOES: ABSENT: NPn ry T.neh r -- OF'. An der-g nn r r TRUCKEE- �_.t.. ER PUBLI TY DISTRICT ATTEST: R PHE51DBNT-,f0F THE BOARD CLERK-EX FF IO TARY - Page 16 RESOLUTIONS FOR 1973 Page # 7222 Amending 6701 - Rules & Regulations for electric Service 14 Voted upon in 1973 7301 Lakeworld Easement 16 7302 Rate increase 23 7303 Authorizing negotiations for a formal lease and acquisition proposal between District and Sierra Pacific Power Company 28 7304 Long Term Disability 31 7305 Accepting Ponderosa Palisades West Water Distribution System 68 7306 Acceptance of the Sierra Pacific Lease Proposal 78 7307 Environmental Impact 121 7308 , Water Connection Charge 101 7309 Omit Mandatory Connection - $5.00 Minimum Omittance 102 7310 Employee Agreement 104 7311 Small Claims Authorization 105 7312 Electric Connection Fee - Amending 7202 112 ,,,..., 7313 Acceptance of Ponderosa Palisades South Water Contract 113 7314 Accepting Sierra Pacific Lease Proposal w/amendments 128 7315 Employee Agreement, Amending Resolution 7310 129 (ORDINANCES ON FOLLOWING PAGE) ORDINANCES FOR 1973 Page # 73-01 Establishing compensation to be received by the Board of Directors 29 i I