HomeMy WebLinkAbout1973-03-20 Min - Board MARCH 20, 1973
The regular meeting of the Board of Directors of the Truckee-Donner
Public Utility District was called to order by Roy Waters at 7: 30
P. m. in the conference room.
ROLL CALL: H. Loehr, present; D. Anderson, present; N. Stone, present;
R. Anderson, present; R. Waters, present.
GUESTS PRESENT: Ed Aweeka, Larry Juliet, LaRoy Carroll, Winifred Loehr,
Dwayne Haddock, Marcella R. Greene, A. Fox, Dortha Barber,
Clara Pyle, Robert Pyle, Betty Juliot, Margaret Copeland,
Jo Brown, Add Taylor, Hazil Beck, Gay Maldonado, Linda
Torri, John Stralla, Mr. & Mrs . Robert Sutton, Marigrey
Fish, Mr. & Mrs . Nick Wagner.
EMPLOYEES PRESENT: Cattan, Paulus, Krajewski, Silva, Kinzie.
MINUTES OF MARCH 6, 1973
H. Loehr moved that both the special meeting' s minutes of March 6,
and the regular meeting' s minutes of March 6, be approved as read.
The motion was seconded by N. Stone.
ROLL CALL: H. Loehr, aye; D. Anderson, aye; N. Stone, aye; R. Anderson,
aye; R. Waters, aye.
BILLS FOR BOARDS APPROVAL
H. Loehr moved that the bills be paid; R. Anderson seconded the motion.
.�.. ROLL CALL: H. Loehr, aye; D. Anderson, aye; N. Stone, aye; R. Anderson,
aye; R. Waters, aye.
BIDS FOR NEW WELL
Out of the eight bid forms mailed out, only two responded. Sierra
Drilling of Reno, bid $14,872. 00 to drill the well at South Side.
They enclosed a personal check in the amount of $1,487. 20. Sage
Brothers Drilling Company, also of Reno, bid $25,520. 00. They enclosed
a cashier' s check in the amount of $2,552. 00. Mr. Cattan is to get
together with Dr. Sharp to look over each of these bids and decide
which bidder has made the best offer The Board will be notified of
their decision.
MR. JOHN STRALLA, IBEW
Mr. Stralla, union representative, presented the Directors with a
draft of what the P.U.D. employees wanted in this year' s union nego-
tiations . He reminded them that this was not from his office but
merely what the employees would like. The Board decided to look this
draft over; and on April 17, Mr. Stralla would come back to the Board
with the final presentation. At that time, a decision will be made.
DR. HERB KEITH' S OFFER FOR 3. 39 ACRES
Mr. Cattan delivered a letter of March 12 to the Board from Dr. Keith.
In this letter, he amended his original offer of $12,000 for the entire
3. 39 acres. Instead, his bid is for $6,000 per acre. It was moved
by H. Loehr and seconded by N. Stone that these acres be placed up
for public bid.
Page 69
Page Two March 20, 1973
DR. KEITH' S OFFER. . . .
ROLL CALL: H. Loehr, aye; D. Anderson, abstain; N. Stone, aye;
R. Anderson, aye; R. Waters, aye.
LAKEWORLD CONTRACTS
Mr. Cattan proposed to the Board that on April 3, he will have a
resume to present to the Board regarding all of the Lakeworld Contracts .
There will also be three of the ex-Directors present and a representative
from Lakeworld.
ELECTRICAL ENGINEER APPOINTMENT
This item was tabled until a decision was made on the Sierra Pacific
Power Company lease proposal.
PAUL CHAMBERLAIN' S COMMENTS
Mr. Cattan informed the Board that he had received a copy of Mr.
Chamberlain' s comments regarding the Sierra Pacific lease agreement.
However, he felt it was still to premature to discuss his views
at this time.
PROPOSAL FROM HAROLD HEIDRICK
Mr. Heidrick prepared a report on what his study would include
and the cost of this study. A copy of this report will be included
in these Minutes . N. Stone moved that we accept this study with
the exception of the future power source study and the self generation
study. The motion was seconded by D. Anderson,
ROLL CALL: H. Loehr, no; D. Anderson, aye; N. Stone, aye;
R. Anderson, no; R. Waters, no.
At this time, a minute order was given to Mr. Cattan stating manage-
ment will prepare a resolution for presentation to the Board on April
3, concerning our lease with Sierra Pacific Power Company, subject to
review by the members of the Board and the power company. N. Stone
questioned this order; asking if this was going to be done without any
analysis. Roy Waters said this would not be without analysis because
on April 3, management will present all analyses. Nelson Stone felt
if the Board was not smart enough to render an unbiased opinion, what
information does the general public have to go on so they can make a
decision. Mr. Cattan answered N. Stone' s comment on being biased.
Mr. Cattan said thatE Nelson always accusses him of being biased. Mr.
Cattan asked if the Board members are sure Mr. Heidrick is not biased.
He makes his living by fighting private companies. He is biased before
r--•, he starts his study. Mr. Heidrick told the Board diesel generation
would cost under 15 mills per kilowatt hour. Mr. Cattan said he worked
for two week-ends on diesel generation and oil alone costs 11 mills.
If you go to diesel generation, Mr. Cattan retracted what he said
earlier. Diesel generation will not cost 20 to 25 mills per kilowatt
hour, but rather 25 to 30 mills. N. Stone explained to Mr. Cattan
that his study would be biased because he would look at this problem
from an engineering standpoint. He believes the Board needs someone
to look at the problem from a business management standpoint. He felt
Mr. Cattan did not have the time for this . Mr. Cattan said he and Torn
were more qualified than any other consultant because they have the
figures . Roy Waters told the members they will have all the information
they need by April 3.
Page 70
Page Three March 20, 1973
KARL KUTTEL
Mr. Kuttel was acting in behalf of a considerable amount of customers
who do not care who serves them or what, or when. All they want is
service and the most reasonable bill you can present to them. Mr.
Kuttel told the Directors they are trusted to act in the best possible
way for all the people in the District. Mr. Kuttel demanded the Board
go to Sierra Pacific and make a deal with them at the earliest possible
time. He said the Board has already elapsed to much time. He gave
them two alternatives : The Board can present the proposal to the
voters immediately, or they can act on their own tonight. At the
same time, he brought to their attention a legislative bill in 1965
stating (recommending) all of the small District' s should consolidate.
He felt this was long overdue. He wanted on the same ballot with the
Sierra Pacific lease proposal the choice to the voters on the consol-
idating of the two Districts, Truckee-Donner P.U.D. and Sanitary
District. He instructed the Board to adopt a resolution to request
LAFCO to approve this consolidation. Roy Waters thought there would
be more to this than what he was simply saying. The Board has for
some time been meeting with members of the Board of the Sanitary
District regarding the merger. However, the feasibility study was
postponed for two reasons: the possibility of incorporation was
brought up and the lease proposal from Sierra Pacific was presented.
R. Waters told Mr. Kuttel that nothing was going to be decided on
tonight, but rather should be taken up at another time, possibly
April 17th.
MANAGERS REPORT
$OEM% Mr. Cattan reported that there will be a four precept increase on
the P.U.D. 's power bill from Sierra Pacific. This increase will be
effective April 28, unless the P.U.C. prescribes another date.
The error made in the February billing will be corrected on the
March bills. The -error included approximately 800 Truckee customers .
There being no further business to come before the Board, it was moved
by Director H. Loehr and seconded by Director R. Anderson that the
meeting be adjourned. All aye; motion carried.
The regular meeting was adjourned by President, Roy Waters, at
9: 18 p.m.
BY
ROY W 7 KS, PRESIDENT OF THE BOARD
MERR LYN K ZIE, RE RDING SECRETARY
Page 71
STATEMENT OF GENERAL FUND
Bank Deposit - 3-6-73 41485. 04
Deposits 46,552. 30
Approved Billings 572258. 87
Delta Lines freight 53. 85
IBEW payroll withholding 87. 30
U.S. Post Office 200. 00
Petty Cash 47. 29
Johnston Pump South Side Well 32145. 33
Betty Brace office payroll (1 day) 20. 80
RTE Substation balance 22872. 00
Sierra Pacific (389 943. 74)
KNLT adv. blance 87. 75
Graybar lights 16.61
Western Substations 42380. 95 (299227. 01)
PAYROLL 3-15-73 OT GROSS NET
Cattan 825 . 00 648. 90
Silva 19.68 662. 56 485. 29
Paulus 637. 50 440. 83
Lopez 595. 84 452.61
Grow 37. 52 536. 00 398. 66
Reynolds 535. 04 384. 73
Craig 535. 04 373.43
Archer 21.44 519. 92 375.28
Kraj ewski 500. 00 384. 85
Straub 432. 08 293. 34
Craig 81.60 380.80 274.85
Kinzie 8. 82 267.54 214.91
Nylund 258. 72 215. 09
Kirchner 62.40 57.51 (5,000. 28)
169.06 61748.44
Current Bank Balance 3-20-73 16,810. 05
BILLS FOR BOARDS APPROVAL
Atlantic Richfield gas & diesel 306.20
Cook Associates Lakeworld 715 . 91
City Linen 6. 00
Graybar wire 11020. 74
O'Hair Supply couplings 54. 08
Pacific Telephone 220. 74
Paule Fire Equipment 102. 90
Specialty Oxygen 4. 34
Sun Printing forms 28. 36
Gordon Huber copy machine 91.47
Safety Equipment Co. 6. 76
Superior Switchboard Devices 187. 78
Sunrise Clinical Lab 10. 00
Sierra Sun Bonanza 7. 50
�..., Martin McDonough rate & Beavers' case 290. 87
Charles O1ano welding 180. 00
Wedco Inc. electric materials 851. 85
Reno Vulcanizing backhoe flat 45. 50
Metal Products Southside well 47. 20
Sangamo Electric glass covers 15. 60
George Cattan vacation & sick leave 10,433. 92
Aniter-Pnuzan electric supplies 324.41
Consolidated Electric 5. 04 (159554. 39)
Balance after payment of above billings 1,255.66
Page 72
WIL�_ HAM Earl P.Wilsey(1892-1957)
1035 EAST HILLSDALE BLVD. • FOSTER CITY, CALIFORNIA 94404 Telephone (415)349-2151 Cable"WHINT"
File No. 5-1669-0101-20
Ma rch 15, 1973
Truckee-Donner Public Utility District
P. 0. Box 309
Truckee, California 95734
Attention: Mr. George Cat tan, Manager
Gentlemen:
In response to your letter of March 9, 1973, request i ng deta i 1 of the items
which will be reviewed i n our proposed study, we have prepared the following
i n f o rma t 1 on.
In preparing the information, we are mindful of the serious decision with
which the Board of Directors of your District must make. We are also aware
of the difficulties resulting from ever increasing costs of operation. It Vs
our understanding that shoo Id your Board accept a proposed lease agreement
of Sierra Pacific Power Company, it would probably result in the termination
of the District as an operating entity, possibly for all time. Therefore,
the first item to be covered by our proposed study would be to review the
lease proposal of the Sierra Pacific Power Company and the special auditor's
report prepared in analysis of that proposal .
n view of our own experience in rate management and operational problems
of utilities, we would propose to review financial statements of the Truckee-
Donner Public Utility District for at least the past two years by individual
months and for annual totals.
In order to provide the Board of Directors with a comparative position
of the District with other districts operating under similar situations,
we will endeavor to obtain operating financial statements from other electric
utility districts in the west and to comment thereon in relation to the opera-
tions of the Truckee-Donner Public Utility District.
Federal agencies such as the Federal Power Commission issue frequent reports
on ope rations of other entities, many of which in size are comparable to the
Truckee-Donner Public Utility District. These likewise wi 1 1 be analyzed and
reported on.
planning • engineering • architecture landscape architecture • surveying • mapping • systems
Page 73
Truckee-Donner Public Utility District
March 15, 1973
Page Two
Because the action of the Board wi 1 1 affect future operations of the District,
we wi 11 make a projection of operations for at least the next five years
of the Truckee-Donner Public Utility District under various alternates which
)Own%, appear reasonable in the particular instance.
Further, because operating conditions and costs vary with time, it would be
reasonable to look at future operations of the district under various alternate
rate structures.
Having established an independent analysis of the future operations of the
District, we wi 1 1 then seek ways to reduce the power costs to the District
by analyzing possible alternate sources of power. These will include the
purchase of power from the Pacific Gas and Electric Company with wheeling of
the power over facilities of the Pacific Gas and Electric Company and the
Sierra Pacific Power Company. The delivery will be to the existing delivery
points where power is received by the Truckee-Donner Public Utility District.
In this regard, it wi 11 be necessary to work closely with the District's legal
counsel to determine the legality of such possible wheeling as to (1) the
feasibility in spite of existing agreements; and, (2) the feasibility with
existing agreements modified in accordance with necessary legal procedures.
An additional analysis will be made under which power would be received from
the Pacific Gas and Electric Company at the Summit west of the District
including construction of the necessary transmission facilities by the
District to the point of delivery.
A third source or procedure for receiving power from the Pacific Gas and
Electric Company would consider construction of necessary transmission
facilities to the Drum switching station of the Pacific Gas and Electric
Company or elsewhere, as that utility might recommend. Construction by both
the District and Pacific Gas and Electric would be reviewed.
It is known that the Northern California Power Association is seeking to
acquire rights to construction or to obtain interest in generation at the
Geysers in Sonoma County. If successful , it may be possible for the Truckee-
Donner Public Utility District to obtain an allotment of this power and have it
wheeled to its boundaries. Here again, it will be necessary to work closely with
legal counsel to properly assess the legality of such an alternative.
It is further understood that the City of Santa Clara is seeking to prove that
there is additional Central Valley Power available. While it is understood
that this study will not be completed for s ome time to come, it is believed
reasonable that city officials should be contacted and their consultants
approached to determine the extent of success in their endeavors and studies
to date. It may be that this city is on the threshold of uncovering additional
allotments of Central Valley Power which through expanded wheeling agreements
Truckee-Donner Public Utility District
March 15, 1973
Page Three
would be available to the Truckee-Donner Public Utility District. Again,
liaison with legal counsel must be maintained during this phase of the
study.
Of course, the Sacramento Municipal Utility District should also be consulted
concerning ava i l ab i 1 i ty of power from that source.
Another and perhaps final analysis might be to contact the Utah Power & Light
Company to determine the availability of power to the east which might be
wheeled to the Truckee-Donner Public Utility District through facilities of
the Sierra Pacific Power Company. Such an approach might be more feasible
than those outlined i n the foregoing discussion because of the possibility
of greater capacity available in the Sierra Pacific lines than in those of
the Pacific Gas and Electric Company to the west of the District. However,
as before, such an approach must be undertaken with the advice of legal counsel
and with his full knowledge and cooperation.
Having analyzed alternate sources of power generated by others, a short phase
of the study should review the feasibility of the District installing its own
generation. In the past few years, the rapid growth of utilities demand has
placed new emphasis on the need for such plants by large utilities. Based upon
the experience of other utilities and generating entities having smaller demands,
it is not anticipated that this a 1 to rn at i ve will prove to be economical . However,
reported information from industrial and small utility operations indicates that
we would be remiss by not reviewing this possibility for the Truckee-Donner Public
Utility District. It i s not anticipated that such review will be extensive in
nature.
The foregoing analyses will require that our personnel work closely with the
staff of your District to obtain factual financial and operating data, to make
spot analyses of the physical condition of the transmission lines, particularly
those of the Pacific Gas and Electric Company, and to explore possible locations
for a diesel generating plant.
To aid in minimizing costs in your District, we propose that the substantial
portion of the field work in and around the Truckee District be performed by
personnel from our Incline Village office acting under written direction of
the writer.
Having developed the various alternatives outlined, we will then select the
most favorable of the alternates for consideration of a possible detailed
feasibility study. Obviously, if none appear to be competitive with existing
operations or with the proposed lease agreement, no further study will be
undertaken. Likewise, in the analysis of each of the alternatives, it may be
Truckee-Donner Pub i s U t i 1 i ty D i stri ct
March 15, 1973
Page Four
uncovered early in each study phase that it would not be feasible to continue
to explore that alternate in further detail. Conversely, an alternate may
appear sufficiently attractive during its initial phase to warrant seeking
,,.. much further detailed information prior to obtaining the results of the other
alternates to be investigated. Consequently, such a study is difficult to
define by a particular cost figure. This is the reason that during our
appearance at your recent Board meeting, we gave you a range of from $6,000
to $9,000. If, early in the analysis of each alternate, it appears that each
alternate is not feasible, it is possible that the study might cost even less
than $6,000. However, in view of the fact that this is unlikely and because
of the serious nature of the decision to be reached by the Board which will
affect operations for the future history of the District, we believe that should
you desire to proceed with the study that we be authorized to expend up to but
not to exceed $9,000, to provide you with monthly detailed billings of our
study, and to agree that you should be permitted to terminate the study at any
time by paying Wilsey & Ham for the monies expended to date in accordance with
Fee Schedule "D", a copy of which i s attached.
It will be our goal -to supply your Board with sufficient detail that they can
confidently and unanimously agree on which action. should be taken. Our fee
estimate includes one presentation at a publ.i c meeting before the Board to
answer questions of the Board and such citizens and representatives as the
Board may choose to hear at the presentation.
t is anticipated that the study can begin within ten days of authori.zat ion
and can be completed within 60 days thereafter. A report will be prepared and
presented to the Board having in mind a des.cr ipt ion of our analysis so described
that it may be used by the Board to inform the customers of the District of the
basis for whatever decision it may choose to make. The report will be presented
in 50 copies.
We appreciate this opportunity to give you this description of the proposed
study and look forward to the honor of serving your District.
Very truly yours,
WILSEY HAM
Harold H. Heidrick
Vice President
HHH/bls
Encl . - Fee Schedule "D"
WILSEY & HAM
PER DIEM FEE SCHEDULE
For consulting services, the compensation of Wilsey & Ham shall be the sum of all of the items set forth
below:
A. PERSONNEL SERVICES
Daily Rates Hourly Rates
Principal-VIII------------------------------------------------------------------------------------------- $368.00 $46.00
Associate-VII-------------------------------------------------------------------------------------------- 304.00 38.00
Project Professional-VI----------------------------------------------------------------------------. 232.00 29.00
Project Professional-Architect, Planner, Engineer-V-------------------------- 210.00 26.25
Senior Architect, Planner, Engineer-IV-------------------------------------------------- 196.00 24.50
Associate Architect, Planner, Engineer-III______________________________________________ 174.00 21..75
Architect, Planner, Engineer-II---------------------------------------------------------------- 162.00 20.25
Junior Architect, Planner, Engineer-I-----------------------------------------------------. 152.00 19.00
Lead Draftsman-V------------------------------------------------------------------------------------ 162.00 20.25
Design Draftsman-IV-------------------------------------------------------------------------------- 140.00 17.50
Senior Draftsman-III-------------------------------------------------------------------------------. 128.00 16.00
Intermediate Draftsman-II----------------------------------------------------------------------- 104.00 13.00
JuniorDraftsman-I---------------------------------------------------------------------- ------------ 86.00 10.75--------------------------------------------
Clerical----------------------------------------------------------- --- 94.00 11.75
Time worked less than eight hours in one day will be billed at the hourly rate. Daily rates will include
time worked up to nine hours on one day after which the excess will be billed at the hourly rate.
Travel will be included in the billing.
19. TRAVEL AND TRANSPORTATION EXPENSES
1. Reimbursement for actual travel and subsistence expenses paid to, or on behalf of, employees on
business connected with the project, plus a service charge of 10%.
2. Fifteen cents (15c) per mile for use of vehicles.
C. OUTSIDE SERVICES
1. Invoice cost of services and expenses charged to Wilsey & Ham by outside consultants, profes-
sional or technical firms engaged in connection with the order, plus 10% overhead cost.
D. BLUEPRINTS
1. The invoice cost of reproduction work other than that done by Wilsey& Ham, plus a service charge
of 10%.
2. Eight cents per square foot of blue-line prints, 25 cents per square foot for duplicating tracing,
15 cents per letter-size photocopy, and 25 cents per legal-size photocopy, for reproductions made
by Wilsey & Ham.
E. MISCELLANEOUS EXPENSES
1. The invoice cost of materials, supplies and services, including communication expenses, procured
by Wilsey & Ham, from outside sources, plus a service charge of 10%. All out-of-pocket expenses
not included in items A. B, C, or D will be included in this category.
Fees and all other charges will be billed monthly as the work progresses and the amount of each billing shall be due and
payable ten days after the date of such billing. Any portion of a billing not paid within thirty days of the billing date shall
be considered delinquent and shall bear a delinquency charge of one (1) percent per month on the unpaid balance, but
in no event shall said delinquency charge or the payment thereof extend the due date.
Should legal action be necessary to enforce the provisions of any contract entered into in which this schedule is a part,
the client agrees to pay all attorneys' fees and court costs incurred in the prosecution thereof.
W&H Form D
Effective January 1,1973