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HomeMy WebLinkAbout1973-04-03 Min - Board APRIL 3, 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: L. I. Russell, Jeanne Sollen, Franklin White, R. C. Swanson, Ametta Firpo, Helenmarie Pifer, Mrs. Pifer, Carol Jones, Adelle Jones , Ron Sweet, Marigrey Fish, Jack Houlgate, Mr. & Mrs . Jim Murphy, Winifred Loehr, La Roy Carroll, Jack Pearse, Mr. & Mrs . R. Sutton, Carmine Giuliano, Cullen Wilder, Edward N. Aweeka, Paul Chamberlain. EMPLOYEES PRESENT: Cattan, Paulus, Krajewski, Kinzie, Craig, Silva. SIERRA PACIFIC REPRESENTATIVES: John Saibini, Dick Campbell, Joe Gremban, Frank Giovannoni. MINUTES OF MARCH 20, 1973 The President asked if there were any additions, corrections , or ommissions to the Minutes of March 20, 1973. It was moved by Director Loehr, and seconded by Director R. Anderson that the minutes be approved as read. All aye; motion carried. BILLS FOR BOARDS APPROVAL After reviewing the bills, it was moved by Director Stone and seconded by Director Loehr that the bills be paid. All aye; motion carried. SIERRA PACIFIC LEASE PROPOSAL Mr. Paul Chamberlain was introduced to explain the draft of Resolution 7306, Acceptance of the Sierra Pacific Lease Agreement. A copy of this draft agreement is part of the Minutes . In regard to the special election, it would take a minimum of 60 days, normally 75 days, and a maximum of 90 days . The main item for this election would be to get the necessary publication, preparation of ballot, mailing of sample ballot, voting place cards, time for arguments to be submitted, etc. Mr. Chamberlain recommended a firm to handle the election procedures, Orrick, Herrington, Rowley, and Sutcliffe. The election would be conducted by the District and its personnel. Some help will be made by the County, but primarily, the election will be handled by the District. Voting will be made by registered voters of the District. Sierra Pacific originally agreed to pay all costs incurred in the Special Election; however, Director Stone requested the District pay all expenses. The Board and Sierra Pacific were in agreement with this. ,�. Item two on the PUD draft, term of the lease, is not only included in Resolution 7306, but has been added in the Sierra Pacific lease agreement. Item three, Sierra Pacific rendering technical help to the District beginning April 15, is not necessary in the formal lease agreement but can be done merely by a letter from Sierra Pacific offering technical assistance at request, which will be paid for at cost. Item four, office space, will be physically changed in the lease as attached to the Resolution. Item five, desire to sell outright at some time in the future, is not necessary to be in the lease or the Resolution because if the District desired this, the law would allow them to. Item six, comments from Paul Chamberlain, Sierra Pacific agrees to have them changed in the lease agreement as attached to the Resolution. Voting on this subject was tabled momentarily so that the auditor could present his report on the financial state of the District as of December, 1972. Page 74 ANNUAL AUDIT REPORT -2- April 3, 1973 A report was presented by Mr. Jim Murphy of Semenza, Kottinger, & McMullen. He showed slides of various breakdowns , explaining the balance sheet, the source of funds, the income statement, and others . Exhibit "A" . the Balance Sheet, showed a ratio of current assets in 1971 to current liabilities as 3 to 1. In 1972, they dropped to slightly less than a ratio of 2 to 1. Exhibit "B" the Income Statement, showed revenue increases of $111,000 for the combined operations . The net pro- fit was down $22,000 as a result of the power increase for the last four months remaining in the year. Exhibit "D", the Source of Funds , �-- shows contributions to be nearly $500,000 which is basically water systems being completed and turned over to the District for ownership and operation. The balance was derived mainly from Lakeworld monies for the construction contract. Nelson Stone asked Mr. Murphy to tell the Board if the District is swimming in rough water or calm water. Mr. Murphy felt . the financial position for 1972 was good if not superb. Tom Paulus explained the electric portion of the construction in regards to Tahoe Donner. A copy of this report will be submitted as part of the Minutes. The electric portion of the Lakeworld contract as of January 31, 1973, showed approximately eleven miles of line being completed at a cost of $86, 125 . Lakeworld has advanced $190,267 leaving a biance of $72,887. It is estimated that if all lines were completed at today' s cost, it would cost $215 ,000 more than we would have allowed on the basis of 5,948 lots at $35 per lot. Mr. Cattan stated that P G & E and Sierra Pacific ' s extension policies would install all electrical facilities at no cost to Lakeworld. At the time of the contract, the District had no policies for subdivisions except in our archaic rule of 1�2- cents per foot per month for five years. The Manager further stated that monies from revenue will pay for the balance of construction. Director H. Leohr moved that Resolution 7306 be adopted. The motion was seconded by Director R. Anderson. ROLL CALL: H. Loehr, aye; D. Anderson, no; N. Stone, no; R. -Anderson, aye; R. Waters, aye. Since the motion carried, the next step will be to present the proposal to the voters for their approval. Tom Paulus asked the Board to approve borrowing between $80 and $90,000 from the land sale fund to pay January and February power bill to Sierra Pacific. It was moved by H. Loehr and seconded by D. Anderson that this be done on a loan basis. ROLL CALL: H. Loehr, aye; D. Anderson, aye; N. Stone, aye; R. Anderson, aye; R. Waters, aye. Director D. Anderson asked that a circular be prepared and sent out •--� with the May bills telling the people about the election and the lease agreement. A questionnaire would be included in this asking if the consumer was inifavor or opposed to the lease. A Special Meeting was set to discuss the contents of the circular. A minute order was given to management to prepare as much information as possible to in- clude in this circular. The Special Meeting was set for April 24, 1973, at 7: 30 p. m. It was unanimously decided by the Board to re-engage the firm of Semenza, Kottinger, & McMullen as auditors for the District in the year of 1973. Page 75 MANAGERS REPORT -3- April 3, 1973 The road to the Tahoe-Donner substation has been cleared for us by Tahoe-Donner. However, the ground is still soft. Regarding the well bids that were opened March 20, Dr. Sharp is presently forwarding a letter on his recommendations. The road into the well site is being constructed. Mr. Chamberlain was asked on the legality of Mr. Cattan' s accrued P-- sick leave and vacation pay for the past years that was paid to him March 21, 1973. Mr. Chamberlain said he was not sure of how this stood on legality and that he would research the subject and let the Board know what he finds . The Prosser Lake report will be scheduled for a Special Meeting on April 30, 1973, at 7: 30 p. m. h h h h I. h I. h h There being no further business to come before the Board, it was moved by Director H. Loehr and seconded by N. Stone that the meeting be adjourned. All aye; motion carried. The regular meeting was adjourned by President, Roy Waters, at 9: 50 P. m. ROY WATER , PRESIDENT OF THE BOARD MERR LYN K%NZIE., RECO ING SECRETARY Page 76 STATEMENT OF GENERAL FUND Bank Deposit - 3-20-73 16,810. 05 Deposits 472847. 09 Approved Billings 142957. 17 Bruning Division map copier 26.25 Utility Body Ladder Trucke 16 . 91 Cal Western pension 580. 31 Tom Paulus janitorial 60. 00 Sierra Pacific Power 10,880. 19 �" Minnesco Division copy machine 80. 07 County of Nevada land assessments 31956.94 } Oliver Division electric inv.. 22865 . 76 Paul Chamberlain 100. 00 Directors, 500. 00 U. S. Leasing mailing machine 25. 26 (342048.86) PAYROLL 3-30-73 OT GROSS NET Cattan 786. 92 611. 82 Paulus 637. 50 458. 26 Craig 36.48 632. 32 469. 14 Reynolds 24. 32 620. 16 457. 81 Silva 39. 36 616.64 481.43 Archer 58.96 557.44 413. 99 Lopez 535. 04 398. 32 Grow 8.,04 522. 60 399.93 Straub 19.64 476.27 334. 18 Krajewski 500. 00 359.28 Craig 299.20 233. 01 Kinzie 19. 85 278.57 223. 38 Ny lund 258. 72 215. 09 Kirchner 208. 00 166.65 Connell 194.40 156.59 (53,378.88) 206.65 72123. 78 Current Bank Balance 4-3-73 25,229 .40 BILLS FOR BOARDS APPROVAL Alpine Business Service forms 127. 03 California Assoc. of Emp. insurance 358. 05 Bill Bosworth S. Side well (trucking) 147. 00 B & D Trucking S. Side well (trucking) 98.40 California Assoc. of Emp. Quarterly dues 75. 00 Inland Chemical & Supply janitorial 7.56 Dept. of Gen. Services book 1. 05 Lee Brothers auto lease 100. 00 Joe' s Auto Service warehouse pick-up 44.29 Jack' s Union repair tire 5. 00 Orov ille Truck & Tractor backhoe parts 43.48 Joe' s Truckee Auto Service various repairs 154. 97 Scott Engineering der. hangers 311. 73 �. Sierra Chemical mercury for pumps 50. 00 Sangamo Electric electric meters 87. 95 Yates Body Shop repair door 66.25 Tahoe Truckee Agency insurance 71. 00 Tom' s T. V. four months cable 20.00 Sparling Envirotech water meter 410. 03 Armanko Office Supply 59. 87 Consolidated Electric heater 1.64 (2,240. 30) Balance after payment of above billings 22,989. 10 Page 77 I� �I i ,I 1� I I RESOLUTION NO. 7305 i i 2 of 3 TR UCKE E - DONN ER PUBLIC UTILITY DISTRICT it 4 CONDITIONALLY APPROVING PROPOSED AGREEMENT 5 AND LEASE WITH SIERRA PACIFIC POWER COMPANY 0 ! OF THE DISTRICT'S ELECTRICAL FACILITIES 7 WHEREAS, Truckee - Donner Public Utility District, (hereinafter referred g to as "DISTRICT, " is a body politic and duly organized public utility dis- 9 trict, under and pursuant to the laws of the State of California, including I 10 ii California Public Utility District Act, Section 15501 and following of the 11 i' California Public Utilities Code, and 12 WHEREAS, said "DISTRICT" as a part of its utility services, owns, mai - 1 13 tains and operated facilities for the transmission, distribution, and 14 sale of electrical energy, and 15 WHEREAS, Section 16431 of said Public Utilities Code hereinabove referr d 16 to, authorizes among other things the lease or disposal of Disci-ict real 17 and personal property, when in the judgment of the Board it is for the it 1g 'f best interests of the District so to do; and 19 IWHEREAS, the Board of Directors of the District, have concluded,after 20 study and for reasons more fully set forth in the recitals of a propose 21 Agreement and Lease submitted to said District by the Sierra Pacific 22 Power Co. , that it is in the best interests of said District to accept 23 said proposal and to lease its electrical utility facilities to Sierra Pac 24 ific Power Company in substantial conformity with the terms of that 25 certain Agreement and Lease with Sierra Pacific Power Company, to= 26 gether with a memorandum of understanding or modification thereto, 27 copies of which are hereto attached and marked Exhibit "A" and 28 " " respectively. 29 Subject however to compliance with the conditions precedent set 30 forth in said proposed Agreement and Lease, including without limita- 31 tion the submission of said proposal and Agreement and Lease there- 32 under to approval by the electors of the "DISTRICT, " CHAMBERLAIN AND CHAMBERLAIN - 1 ATTORNEYS AT LAW BANK OF CALIFORNIA BLDG. AUBURN, CALIFORNIA Page 78 �I ! t !R EE.I II 1� I� I I 1 it NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS 2 OF TRUCKEE - DONNER PUBLIC UTILITY DISTRICT, as follows: P 3 �i Section 1. That the Board of Directors of Truckee - Donner Pub- 4 ! lic Utility District hereby determines that it is for the best interests of 5 the District to accept the proposal made by and enter into the Agreement If i g �1 and Lease with Sierra Pacific Power Company, as shown in co thereof � copy 7 I attached hereto, marked Exhibit "A.. " including the memorandum of i 8 understanding or modification thereto; 1 9 Section 2. That in accordance with one of the conditions prece- a 10 'j dent, a special election shall be held in said District, within ninety days time and in the manner allowad b law, to submit to the qualified elector 11 �j y 11 12 of the District the question as to whether or not said District should 13 ( accept said proposal and enter into said Agreement and Lease with Sierra 14 Pacific Power Company. 15 I' Section 3. That the staff and officers of the District, including 16 Ij District legal counsel, are authorized and directed to take all actions nec- 17 I essary or appropriate to effect and finalize said Agreement and Lease, I. 18 and to effectuate the provisions of this Resolution. 19 Section 4. That if any section, paragraph, clause or provision 20 of this Resolution shall for any reason be held to be invalid or unenforceable, 21 ( the invalidity or unenforceability of such section, paragraph, clause or pro- 22 vision shall not affect any of the remaining provisions of this Resolution, 23 Passed and adopted at a regular meeting of the Board of Directors 24 of said District this 3rd dayof April 1973 b the following vote: P � y g 25 AYES: Directors lis Loehr R. Anderson 26 ; R. eaters F , 27 NOES: Directors N. Stone D. Anderson , 28 ABSENT: Directors , 29 TRUCKEE -f D NNER PUBLIC UTILITY DISTRICT (SEAL) ' 30 By: Fyn f President the ard 6f Directors thereof, 31 ATTEST: 32 Clerk threof.(/ CHAMBERLAIN AND CHAMBERLAIN ATTORNEYS AT LAW - 2 - BANK OF CALIFORNIA BLDG. AUBURN,CALIFORNIA Page 7