HomeMy WebLinkAbout1974-05-07 Min - Board MAY 79 1974
The regular meeting of the Board of Directors of the Truckee-Donner
Public Utility District was called to order by the president at 7 : 30
p.m. in the conference room.
ROLL CALL: J. Craig, present ; D. Anderson, absent at roll call ,
arrived ten minutes late ; P. Sutton, present; R. Anderson,
present; R. Waters , present.
EMPLOYEES PRESENT: Paulus , Kinzie, Krajewski, Grow, Silva, Reynolds ,
,.�♦. Connell , Straub and Craig.
GUESTS PRESENT: John Stralla, Attorney J. Joynt, Sierra Sun Reporter,
arigrey Fish, William Hessel , and James Murphy.
MINUTES OF APRIL 2 , APRIL 16 , AND APRIL 18 , 1974
Minutes of April 2 : OMISSION: Page 3, lst paragraph: the contract
covers union employees and non-union employees . " (omit : and administra-
tive employees)
It was moved by Director Sutton and seconded by Director Craig that
the minutes of April 2 be approved as corrected. ROLL CALL: J. Craig,
aye; D. Anderson, absent; P. Sutton, aye; R. Anderson,aye ; R. Waters , no.
It was moved by Director Craig and seconded by Director Sutton that
the minutes of April 16 , 1974, be approved as written. ROLL CALL: J.
r Craig, aye; D. Anderson, absent ; P. Sutton, aye ; R. Anderson, aye;
R. Waters , aye.
It was moved by Director P. Sutton and seconded by Director Craig that
the minutes of April 18 , 1974, be approved as written. All aye;
motion carried.
BILLS FOR BOARD' S APPROVAL
Director Sutton asked why the bills listed at the top of the list
were separated from the bills for board' s approval at the bottom.
Mr. Paulus told her that the bills at the top have already been paid.
They sometimes include Quarterly payroll withholdings , postage for
the postage machine, bills for bid awards , etc. It was moved by J.
Craig and seconded by R. Anderson that the bills be paid. All aye.
2500 KVA TRANSFORMER BID AWARD
Bids have been called for a 2500 KVA transformer to replace the trans-
former that failed in the Truckee Substation. Standard Transformer
did not submit a bid as they did not manufacture the type of trans-
former specified. Allis-Chalmers did not submit a bid as they do
not manufacture transformers in the range of 501 KVA to 10 ,000 KVA.
RTE Corporation could not meet the specifications of the transformer ;
and therefore, did not submit a bid.
The Board wondered why Westinghouse and General Electric did not submit
bids. General Electric had Quoted a price for a 2500 KVA transformer
prior to the bids being called for. It was decided to have Mr. Paulus
and Harold Heidrick contact Westinghouse and General Electric to see
if there are any transformers of this type available and the cost of
that transformer. Mr Paulus suggested the possibility of looking
• -- into used transformers.
EMPLOYEE WAGE AND BENEFIT DISCUSSION
Mr. John Stralla, IBEW representative, asked that an executive session
be called to negotiate the contract. He was not aware that there was
a newspaper reporter at the last regular meeting who reported a detailed
description of the discussion at that meeting. As negotiator for the
IBEW with Sierra Pacific, he said the newspaper report put him in a
difficult position. Director Sutton preferred to have the executive
session at another time and date . She did not approve of the practice
and also pointed out that the agenda was Quite long. Director R.
Anderson did not see any objection in adjourning into executive session.
Director Sutton also felt she should have an opportunity to review the
Employee Wage and Benefit Discussion . . , continued
union agreement which Mr. Stralla presented to the board members at
this meeting .
It was decided to have an executive session at this time. The meet-
ing was adjourned for approximately one and a half hours while the board
held an executive session with Mr. Stralla, Shop Steward Bruce Grow,
Mr. Paulus , and Mr. Krajewski.
At the end of the executive session, it was announced that no decision
was made regarding the employee contract. Further negotiations will
be at the regular meeting of May 21 during another executive session.
1973 AUDIT
i
Mr. Jim Murphy and Bill Hessel were present at the meeting to present
the 1973 audit which was reviewed on an overhead projector. Mr. Murphy
first showed the balance sheet which shows the district' s assets ,
liabilities , and net margins .
On Sheet 19, Electric and Water Departments combined, the net profit
reflected $196, 000 this year compared to $100, 000 last year. Mr.
Murphy then explained Sheet 17, Electric Department Comparative a
Schedule of Revenue and Expenditures. Thepercentage cost to total
revenue is almost identical to last year's . Mr. Murphy said this
meant the electric rates were adjusted adequately to compensate for
the increase in power costs . On a percentage basis , there was more
profit this year than last year which Mr. Murphy said was due to the
other costs not increasing at the same ratio as the revenue did.
The Electric Department showed a profit of $278 ,484 for 1973 .
The Water Department' s Comparative schedule of Revenue and Expendi-
tures showed a loss of $3, 729 compared to last year' s $5 , 256 profit.
Mr. Murphy thought that this figure probably means the water department
rates need some adjustments . Regarding the depreciation rates for
the water department which were changed as of the first of 1973,
Mr. Murphy said that if they had not been adjusted, the total loss
for the water department would have been larger. He said the change
amounted to about a $4, 000 savings .
The Schedule of Departmental Revenue and Expenditures for the
electric and water departments combined showed that the Donner Lake
system profited $65, 136 . With the original price being $197 , 000 ,
Mr. Murphy said this should be paid back in a very short time .
The overall operating margin for both departments was $196,016 . The
combined non-operating margins increase the total profit to $223, 031 .
Director Craig questioned restricted funds and their use. Mr. Murphy
told him that most of the restricted funds were in time deposit and
were for a specific use. Mr. Craig asked for a list of the restricted
funds which Mr. Murphy said he could provide .
Mr. Murphy informed the board that next year the Federal Power
Commission will require that any contributions received from a cus-
tomer to build a plant for them must be used to reduce the cost of
that plant. Mr. Murphy said this would change the rate base substan-
tially, as it cuts the return on the equity down and the district
would get less return to build into the rate structure.
After Mr. Murphy presented the audit , the directors were allowed to
ask various questions of the procedures .
Due to the lateness of the meeting, the agenda was changed to allow
Item E, the Dart Power Contract, to be taken up at this time .
DART POWER CONTRACT
Mr. Charles Doskow and Fred Damavandi were present at the meeting
representing Dart Resorts . Mr. Martin McDonough, representing the
District and Electrical Engineer Harold Heidirck, have met with
Dart representatives to draw up a supplemental electric agreement .
A draft supplemental agreement was mailed to the directors prior to
the meeting. Director Sutton requested that the Sierra Sun receive
Page Two - May 7 , 1974
Dart Power Contract continued _
a copy of the agreement.
Mr. Paulus and the board went over minor changes in the agreement.
The changes will be incorporated in the final supplemental agreement.
Regarding the interest that will be paid back to Dart for the monies
Dart paid the district for the construction of power lines, it was
decided to have Mr. Paulus formulate the total unexpended amount due
Dart and incorporate this figure into the supplemental agreement so
that every party involved would be aware of the amount.
The inspection fee of the power line construction was changed from
$8. 50 per hour to the district ' s established, then existing rate .
The Board discussed removing the 7-day limit to connect Tahoe Donner
electrical services and decided to leave in the 7-day limit and add
"unless absent, extenuating circumstances" to the sentence.
Mr. McDonough omitted the sentence after the sentence pertaining to
the 7-day connection limit which read, "The District acknowledges
that delay in such hookups causes damage to Dart , by reason of delay
in closing house contracts , and customer dissatisfaction. " The
Board decided to have Mr. McDonough and Mr. Doskow reword that idea.
The directors thought the original sentence was unclear.
The comments and recommendations will be discussed with Mr. McDonough
and Mr. Doskow and a final agreement will be presented to the board
for approval at the next regular meeting .
DART LETTER TO STATE LANDS
Deputy Attorney General Dennis Goldstein has suggested that the dis-
trict clarify its intention to divert a maximum of 4 ,000 acre feet from
Donner Lake for the water intake facilities . This would be in the form
of a letter to the State Lands Commission which would accompany the
district' s application for the lease of that land. Dan Cook has written
a letter which states that there is an operation minimum water service
of 5932 feet elevation during the summer months that precludes the
extraction of more than 4, 000 acre feet and that the wells in the
Martis valley area seemed to indicate that the water demands for the
area in the future would be satisfied by these wells . Dan Cook also
stated that he- saw no objection to a letter to the State Lands Com-
mission being written stating that no more than 4 ,000 acre feet would
be extracted from the lake . Martin McDonough also saw no objection
to a letter of this sort being written according to Mr. Paulus . He
has drafted a letter which Mr. Paulus presented to the board.
Director Sutton stated that she wanted the EIR to come from the State
Lands Commission based on previous documents without the letter.
She did not want to authorize the letter indicating a limit of only
4, 000 acre feet because she did not know whether in the future addi-
tional water may be needed.
Director R. Anderson moved that management be authorized to write a
j letter to the State Lands Commission as prepared by Attorney Mosko-
i
vitz , representing Dart. The motion was seconded by D. Anderson.
ROLL CALL: J. Craig, no ; D. Anderson, aye ; P. Sutton, no ; R. Anderson,
aye; R. Waters , aye. So moved.
The remaining items on the agenda were omitted and will be discussed
at the next regular meeting of May 21.
MANAGER' S REPORT
The P.U.D examination will be presented by Harold Heidirck at the
next board meeting.
Assembly Bill 2890 has passed the Senate .
The petitions for the W. River Street Assessment District have been
mailed and each director has received a copy.
Page Three - May 7 , 1974
Manager' s Report . . . continued
The joint power agreement will be mailed to the district for discus-
sion at the next meeting according to John Saibini of Sierra Pacific.
John Sharp has recommended adding a chemical to the Southside Well
which will increase its yield. The directors favored spending a
maximum of $500 for the chemical and Dr. Sharps presence while the
chemical is being added.
The Northside Well is down 925 feet total depth. It has been test
pumped at 700 gallons per minute. The pump that Dan Cook had Dart
install can yield 1200 gallons per minute with adaptions if the
water is available. - '
Regarding the study of a possible merger of districts , the Park and
Recreation District has voted againsta central merger. The Sanitary
District has placed the proposal for a study on their agenda for j
their meeting of May 7. '
Mr. Paulus has met with the Telephone Company requesting that they
assist the district by installing forty percent of the poles annually.
Also, for pole contacts , the district will increase its rent to $4. 00
annually instead of the present $1 . 25. Pacific Telephone is prepar-
ing a contract and we should have something concrete soon.
i
Mr. Paulus announced that the district' s line truck would be driving
in the little league parade this coming Saturday and asked the board' s I
concurrence. The directors except Director Sutton who objected on
the basis of liability felt that if the little league and the district
were insured against any lawsuit, it could be permitted.
i
Another inquiry has been received on the land located at the inter-
section of HIghway 89 and Old Highway 40 across from Safeway. The
board decided not to declare this land surplus until after a study
has been made by Harold Heidrick and Dan Cook on the future use of
the district ' s surplus parcels .
Mr. Paulus presented Resolution 7402 which would increase the elec-
trical connection fee to $65 for 200 feet of service wire from $50.
Mr. Paulus said the cost of overhead connections last year was $56. 14 ;
payroll expense and overhead amounted to 50 percent of this figure.
Mr. Paulus proposed having the district install an underground
electrical service at a cost of $300. Director Craig wanted the
district ' s cost broken down. The directors felt it unfair to charge
new connections different prices because their house fell over 200
feet from the nearest transformer. Director Craig said Sierra Pacific
does not install underground services ; and therefore, did not want
to see the district start this practice. The directors also did not
want to be in the construction business in doing the underground
services . Northing was decided on this and the matter was tabled
until another meeting.
Manager Paulus requested an executive session for the next regular
meeting at 7 : 00 p.m. to discuss the administrative employee ' s wage
and benefit agreement . Director Sutton asked that prior to that
meeting all effective resolutionsand ordinances pertaining to admin-
istrative employees be sent to the directors for review. This was
agreed to. Director Craig wanted comparable salary and job descrip-
tions as Sierra Pacific and PG &E.
There being no further business to come before the board, it was
moved by Director R. Anderson and seconded by Director D. Anderson
that the meeting be adjourned. All aye; so .moved.
The regular meeting of the Board of Directors was adjourned by
President Waters at 12 : 20 a.m.
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
BY
WA
PRES7IDENT OF THE BOARD
L
K RECORDING ECR tog
Pa-ge four - May 7 . 1974
STATEMENT OF GENERAL FUND
Bank Balance - 4-15-74 43, 298 . 18
Deposits 51 ,491 . 42
Approved Billings 101, 271 . 55
City Linen (4. 00)
Allied Automotive . 24
The Gerin Corp. (. 14)
Delta Lines (18 . 37)
General Electric taxes 253. 68
Associated Freights 51,68
Dept. of HRD State taxes ,disability 412 . 20
Post Office 250. 00
Internal Revenue federal taxes 2 ,055 . 80
Tom Paulus janitorial 60 . 00
Petty Cash 50. 14
Westinghouse 7 ,455 . 00
Check Order 13. 62
Dart meals 14. 28
Trans . to Consumer Deposits 25 . 00 (20 ,890. 68)
PAYROLL
4-30-74 DT OT STANDBY GROSS NET
Sharp 43. 95 559 . 63 412 . 59
Paulus 750. 00 539. 23
Silva 14. 30 71 . 50 729. 30 563. 66
Reynolds 66 . 50 651. 70 498. 97
Grow 585 . 20 454. 03
Lopez 585 . 20 419 . 53
Kraj ewski 575 . 00 424. 32
Straub 510. 40 372 . 35
Connell 421. 52 304. 84
Barry 389. 84 318 . 53
Craig 41 . 85 369. 21 283. 91
Kinzie 41. 05 324. 41 248 . 62
Kirchner 268. 40 197. 52
Drace 114. 00 102 . 26
Rose 69. 00 62 . 17 (59202 . 53)
14. 30 126. 85 148 . 00
Bank Balance - 68,696 . 39
BILLS FOR BOARD' S APPROVAL
Gautsche' s Chevron grease pick-up 18. 79
J. Joynt legal 628. 30
Sage Brothers Drilling Southside WEll 600. 00
Sun Printing forms 368 . 06
U. S. Leasing mailing machine 25 . 26
Ken' s Tire Center 2 re-caps 33. 95
Truckee-Donner Disposal 2 2 , 50
Taylor' s Tires 4 tires 138. 18
Walker' s Toggery 2 coveralls 37. 10
Truckee Tahoe Lumber meter testing room 110. 12
Western Hdwe. & Tool safety equipment 57.40
Western Auto 6 . 72
Western Nevada Supply 4 water invoices 19906. 52
Maydwell & Hartzell fuses 301 . 04
Monroe Calculators ribbon 2 . 65
Magi Chem chemical 82 . 99
Tom Paulus 8 lunches 16 . 86
Dictaphone repair tape recorder 75 . 48
Murray, Burns & Kienlen Dart water 257 . 37
Specialty Oxygen welding supplies 24. 97
A. Carlisle & Co. office exp. 19. 58
CAE emp. insurance 497.60
REA 71334.66
Wedco electric putty 33. 28
ground rods & clamps 1 ,284. 72
" staples 13 . 68
transformers 12351 . 50
" service deadend 433. 86
meter testing room 152 . 13
t " 144. 03
" 4 heaters for pumps 5 . 99
" clamps 183. 75
Bills for Board' s Approval . . . continued
Wedco arrestor/cutout 276 . 15
Ace Hardware 137, 71
Allied Automotive 124. 60
Niedermeyer-Martin Co, pole bid 15 ,667 . 33
Osburns Super Service backhoe diesel 6 . 45
Alpha Hdwe. tools & whse rollers 442 . 56
Bruning Division. map copier 31 , 80
Graybar connectors 23. 46
" wire 11,852 , 35
" 19 287. 90 �-
Sierra Pacific Power Co. 622326 . 54
Superior Switchboard test switches covers 7 . 26
Cook Associates all Dart except $482 19795 . 66
CRown Life L.T. disability 109 , 04 (1002257 . 85)
Bank Balance after payment of above (31 561 .46)
.s."
AUDITORS' REPORT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
December 31 , 1973
C O N T E N T S
Page
AUDITORS' REPORT 3
FINANCIAL STATEMENTS
BALANCE SHEET 4
.,. STATEMENT OF REVENUE 5
STATEMENT OF MARGINS AND OTHER EQUITIES 6
STATEMENT OF CHANGES IN FINANCIAL POSITION 7
aim NOTES TO FINANCIAL STATEMENTS 8
SUPPLEMENTAL INFORMATION
AUDITORS' REPORT ON SUPPLEMENTAL INFORMATION 14 .
,^ SCHEDULE OF FIXED ASSETS 15
SCHEDULE OF DEPARTMENTAL REVENUE AND EXPENDITURES
ELECTRIC AND WATER DEPARTMENTS COMBINED 16
COMPARATIVE SCHEDULES OF REVENUE AND EXPENDITURES
ELECTRIC DEPARTMENT 17
WATER DEPARTMENT 18
. ELECTRIC AND WATER DEPARTMENTS COMBINED 19
won
sun
•
Alexander grant
& COMPANY INTERNATIONAL FIRM
CERTIFIED PUBLIC ACCOUNTANTS ALEXANDER GRANT TANSLEY WITT
OWN
.w
Board of Directors
Truckee Donner Public
Uti 1 i ty District
POW
We have examined the balance sheet of the Truckee Donner Public
Utility District as of December 31 1973 and the related statements of
revenue, margins and other equities and changes in financial position for
the year then ended. Our examination was made in accordance with generally
accepted auditing standards, and accordingly included such tests of the
accounting records and such ether auditing procedures as we considered
necessary in the circumstances. The financial statements for December 31 ,
1972 were examined by a firm of certified public accountants, which firm
has since merged with us.
In our opinion, the accompanying balance sheet and statements of
revenue, margins and other equities and changes in financial position present
fairly the financial position of the Truckee Donner Public Utility District
as of December 31 1973, and the results of its operations and changes in
its financial position for the year then ended, in conformity with generally
accepted accounting principles applied on a basis cares i s ten+ with that of
the preceding year.
at
Reno, Nevada
March 22, 1974 -
ARLINGTON TOWERS P.O. BOX 30 RENO, NV 89504 (702) 786-1520
z
e
owe
Truckee Donner Public Utility District
... BALANCE SHEET
December 31, 1973 and 1972
ASSETS
(Note C)
1973 1972
... Utility plant - at cost
Electric plant $1,836,580 $1,582,716
Water plant 1,450,897 1,326,404
General plant 265,258 271,231
Electric plant
acquisition adjustment 11,451 11,451
3,564,186 3,191,802
Less accumulated depreciation
and amortization (Note A(1)) 761,012 678,651
22803,174 2,513,151
Other property and investments
Nonutility property (Note B) 20,724 20,914
Restricted funds (Note D) 257,130 174,655
Other investments 811161 158,159
Sam 359,015 353,728
Current assets
Cash - general 38,369 13,718
Notes receivable 14,747 20,307
Accounts receivable -
consumer (net of provision
for uncollectibles)(Note A(2)) 94,883 69,685
Accounts receivable -
other (net of provision
for uncollectibles)(Note A(2)) 19,495 11,151
Materials and supplies (Note A W) 136,720 121,274
Other current and accrued assets 3,326 3,219
307,540 239,354
$3,469,729 $3,106,233
MARGINS AND LIABILITIES-
Margins
�- Operating margins $ 883,845 $ 687,829
Other equities 579,053 537,240
Donated capitol 136,515 136,515
Contributions in aid of
construction (Notes A(4) and D) 12180,906 17011,237
2,780,319 2,372,821
Long-term debt (Note C)
*- REA obligations 410,574 429,574
Sierra Pacific
Power Company obligations 128,076 140,091
Other long-term obligations 29860 3,300
Assessments payable (Note B). 17,229 19,061 '
558,739 592,026
Current liabilities
son Accounts payable 101,711 135,446
Consumer deposits 6,210 2,710
Other current
and accrued liabilities 22,750 3,230
#- 130,671 141,386
Contingent liabilities
and subsequent events (Note D)
Now
$3,469,729 $3,106,233
The accompanying notes are an integral part of this statement.
4
Truckee Donner Public Uti 1 i ty District
STATEMENT OF REVENUE
ONO
Years Ended December 31 , 1973 and 1972
1973 1972
Operating revenue (Note C) $190329 278 $731,1037
Operating expenditures
Cost of power 5059060 3459452
Transmission 229974 159,293
Distribution 65,914 50,829
New Consumer accounting
and collecting 469218 35,591
Administrative
soft and general 719119 679487
Depreciation
and amortization (Note A(1)) 97,035 921,420
'~ Into res t on
long-term debt 20,322 201,201
Other operating
expenditures 7,620 _3 601
836,262 6own
30,874
Net operating margins 196,016 100, 163
Nonope ra t i ng margins
Net merchandise
and jobwork revenue 109092 11 ,715
Interest revenue 15,•924 . 99758
Miscellaneous revenue 999 355
27,015 211,828
f
NET MARGINS $ 2239031 $l 21 ,991
The accompanying notes are an integral part of this statement.
pow
ONE%
Truckee Donner Pub 1 i-c Utility District
STATEMENT OF MARGINS AND OTHER EQUITIES
Years Ended December 31 , 1973 and 1972
1973 1972
Operating margins
Balance at beginning of year $687,829 $587,666
Net operating margins 196,016 1002163
Balance at end of year $883,845 $6879829
Other equities
*AM Nonope ra t i ng margins
Balance at beginning of year $ 679117 $ 45,289
Nonope ra t i ng margins 277015 21
Balance at end of year 949132 679 1 17
Capital gains
Balance at beginning of year 470, 123 2939678
Gain on sale of land 139002 1779202
Gain (loss) on sale of equipment 1 ,796 ( 757)
"' 484 9 21 480 12 3
Balance at end of year
$57%053 $537,240
now
The accompanying notes are an integral part of this statement.
6
r» '
Truckee Donner Public Utility District
STATEMENT OF CHANGES IN FINANCIAL POSITION
Years Ended December 31, 1973 and 1972
Now
Sources of working capital 1973 1972
From operations
...,� Net margins $223,031 $ 121,991
Depreciation and amortization
not requiring an outlay of
working capital 102,930 999130
Working capital provided from operations 3259961 2211,121 -
,.. Cash and utility plant
contributed to District 1699669 634,025
Proceeds from sale
of land and equipment 159002 181,115
Restricted funds and other
investments transferred to
general fund 112,619 112,764
Excess of salvage credits
over cost of removal 24,197
Decrease in working capital 29,358
... $623,251 $1,202,580
Applications of working capital
Additions to utility plant $390,291 $ 835,830
�•• Excess of cost of removal
over salvage credits 21,676
Additions to restricted
funds and investments 118,096 3369919
Reduction in long-term debt 33,287 299831
Increase in working capital 7$,901
$623,251 $192029580
► Changes in components of working capital
Increase (decrease) in current assets
Cash general $ 241,651 $ 59998
Notes and accounts receivable 275,982 ( 159186)
Materials and supplies 15,446 62,744
Other current and accrued assets 107 ( 3,130)
681,186 502426
(Increase) decrease in current liabilities
Accounts payable 339735 ( 83,775)
Consumer deposits { 3,500) ( 785)
"' Other current and
accrued liabilities ( 199 520) 4,776
102715 ( 79,784)
INCREASE (DECREASE) IN WORKING CAPITAL $ 78,901 ($ 29,358)
*�- The accompanying notes are an integral part of this statement.
7
...
rr..
mom Truckee Donner Public Utility District
NOTES TO FINANCIAL STATEMENTS
December 31 , 1973 and 1972
NOTE A SUMMARY OF ACCOUNTING POLICIES
The accounting principles followed by the District and the methods of
applying those principles conform with generally accepted accounting
principles and with those generally accepted within the utility industry,
where applicable. A summary of the District' s significant accounting
policies consistently applied in the preparation of the financial state-
ments follows :
(1 ) Depreciation and Amortization
Provision has been made for depreciation and
amortization of the utility plant on a straight-
two line basis over the estimated service lives of
the properties as follows :
Electric plant 2.8/ 4.3%
Water plant 2.0/ 5.0%
General plant
Structures and improvements 3.0%
Office furniture and fixtures 6.0/16.0%
Transportation equipment 16.0%
Tools and shop equipment, 6.0/16.0%
Laboratory equipment 6.0%
Miscellaneous equipment 6.0%
Communication equipment 5 0%
Electric plant
acquisition adjustment 6.6%
(2) Accounts Receivable
«..
An allowance for uncollectible accounts receivable
has been recognized based on 2 .of the receivable
at year end.
(3) Materials and Suppl ies
Inventory is stated at the lower of cost (princi-
pally average cost) or market, whichever is lower.
one •
Truckee Donner Public Utility District
NOTES TO FINANCIAL STATEMENTS
December 31 , 1973 and 1972
....... NOTE A - SUMMARY OF ACCOUNTING POLICIES (Continued)
(4) Contributions in Aid of Construction
The District has classified contributions in aid
of construction as part of margins because it is
.. felt no liability exists and such is a more proper
classification of the account.
Alm In accordance with a revision of the Federal Power
Commission Uniform System of Accounts effective in
1974, contributions in aid of construction, which
is an accumulation of amounts received from consumers
for construction, will be credited to. the applicable
plant accounts.
NOTE B - NONUTILITY PROPERTY
The District sold for cash parcels of its nonutility land in both 1973
and 1972. These parcels, along with others, had been gifted to the
District in prior years and have no cost basis. However, the land still
owned by the District has been assessed by' the Truckee Sanitary District
for sewer assessments in the amount of approximately $15,000. (Note C)
Truckee Donner Public Utility District
NOTES TO FINANCIAL STATEMENTS
December 31 , 1973 and 1972
NOTE C - LONG-TERM DEBT
The District has issued three series of bonds to the REA as follows :
Amount Amount
of Received Amount Due REA
Bonds from REA 1973 1972 _
First series $367,000 $367,000 . $276,000 $289,o00
Second series 1159000 1159000 1069000 109,000
-' Third series 13`09000 31 28,574 312574
$6129000 $51.3,574 -$41o,574 $4299574
The first series is payable in annual installments of $13,000 commencing
on July 1 , 1967 for a period of twenty-five years and installments of
$14,000 per year for the last three years of the loan. The second series
is payable in annual installments of $3,000 commencing on May 1 , 1971 for
a period of eighteen years, $4,000 for the next ten years, $5,000 for the
following three years and a final payment of $6,000. The third series
provides for payments of $3,000 for the first eighteen years commencing
on May 1 , 1973, $5,000 for the next ten years, $6,000 for the following
.. three years, and a final payment of $8,000: The series carry an interest
rate of 2% per annum payable semiannually on the amount of unpaid bonds.
At the District's option these bonds may be retired at any time for face
value plus accrued interest. All assets are pledged as security for
this debt.
The District negotiated an Electric Service Acquisition Agreement with
Sierra Pacific Power Company for the purchase of the Donner Lake area
el ectri cal system effective May 1 , 1968. The total purchase price of
$197,009 is payable in thirty equal semiannual installments of $9,213
including interest at the rate of 4.68% per annum on the unpaid balance
commencing on September 15, 1968. The acquisition agreement provides
that the unpaid principal and interest of this note are secured by a
pledge of, and lien against, the net revenues of the electric system
located in the Donner Lake area.
10
mom
Truckee Donner Public Utility District
NOTES TO FINANCIAL STATEMENTS
December 31 , 1973 and 1972
NOTE C - LONG-TERM DEBT (Continued)
In 1967, the District entered into a purchase agreement with Burney
Lumber Sales Company whereby the District agreed to purchase a water
line running to the lumber company for a total cost of $6,600. Payment
WWI of this amount was scheduled by allowing monthly credits in the amount
of $55 against the lumber company's water bill beginning in December,
1967 and continuing until paid. This obligation is noninterest bearing.
The District is also liable for sewer assessments imposed by Nevada County,
California payable over a twenty year period beginning in 1971 plus interest
at the rate of 6% per annum on the declining balance. Of the amount, ap-
proximately $15,000 applies to nonutility property and the remaining amount
to the office and warehouse. The District has deferred payment on the
nonuti l i ty portion since the property has been offered for sale.
NOTE D - CONTINGENT LIABILITIES AND SUBSEQUENT EVENTS
During 1970 the District entered into agreements with Lakeworld, a
division of Dart Industries, Inc. , to provide water and electrical
... services to a newly developed subdivision having approximately 6,000
units.
The agreement to provide water services requires Lakeworld to construct
water source and supply facilities at Donner Lake. In addition, wells
and other facilities will be constructed, if needed, to provide adequate
... water supplies for the subdivision All of these fac i l.i t i es will be
turned over to the District for operation and maintenance when completed
and authorized for use by the State of California. At the present time
the Donner Lake intake facility has been completed. However, it cannot
be used because of litigation and other legal problems which have
occurred.
Lakeworld will also pay the District a $40 per lot installation charge
for establishing services from the distribution mains when requested.
The District has received approximately $151 ,000, from Lakeworld through
December 31 1973 for this purpose, $62,570 of which has been invested
in time certificates of deposit and restricted by the Board to provide
.- funds for future installation costs.
The agreement to provide electrical services for the subdivision requires
the District to construct and maintain the main transmission lines as
well as the smaller lines to individual lots. Lakeworld has agreed to
pay $50,000 toward the cost of the main distribution line and $35 per lot
-- for the other lines. These amounts were estimated to provide full re-
imbursement for the District 's costs involved in the project.
11
Truckee Donner Public Utility District '
NOTES TO FINANCIAL STATEMENTS
OWN December 319 1973 and 1972
NOTE D - CONTINGENT LIABILITIES AND SUBSEQUENT EVENTS (Continued)
The District has received approximately $245,000 from Lakeworld
through December 31 , 1973 including the $50,000 attributable to the
main distribution line. Approximately $128,000 has been invested in
time certificates. of deposit and is restricted for use when future
installation costs are incurred.
The construction costs incurred by the District have averaged in
excess of $90 per lot for some 1 ,700 project lines completed. Since
the costs are expected to increase in future periods the District will
be required to spend substantial amounts more than what will be pro-
vided from Lakeworld contributions. A potential liability of approxi-
mately $2,4001,000 exists in excess of reimbursed cost and the District
is presently negotiating with .Lakeworl d in order to obtain additional
funds. and financing to complete the commitments involved with the
contract.
�... All funds and utility plant received by the District have been credited
to contributions in aid of construction. (Note A(4))
._ The Di str.i ct is involved. in two lawsuits.
One legal action, relating to the cost of water services provided to a
subdivision, was decided in the District's favor, however, the time for
filing an appeal has not expired. Attorneys for the District believe
no liability will result from this action,
e.u.
-� The other legal action involves the right to take water from Donner
Lake through the facilities constructed by Lakeworld. The action filed
by the State of California involves this right and negotiations for
leases and other settlement efforts are being made to resolve the
matter without further court action. Attorneys for the District
�- believe no financial risk is involved other than the costs of the
litigation.
mom Effective January 1 , 1974 the cost of power supplied the District by
Sierra Pacific Power Company was increased 14.8%. The District has
protested this increase before the Federal Power Commission as well as
own an increase previously put in effect. The outcome of these matters
has not yet been decided, however, the proceedings will not result in
an increase in charges over those the District is now paying .and might
reduce those charges if the Federal Power Commission favorably considers
the District's position in the matter.
ohm
12
.m
s..
r
.r.
..
SUPPLEMENTAL INFORMATION
om
son '
Von"
•
s
Truckee Donner Publ i c
Uti 1 i ty Di strict
The basic financial statements of Truckee Donner Public Utility
District for the year ended December 31 , 1973 and our opinion thereon
are presented in the preceding section of this report. Our examination
was made primarily for the purpose of formulating an overall opinion on
sea
those financial statements. The supplemental financial statements
y' presented hereinafter are not considered necessary for a fair .presentation
of financial position, results of operations and changes in financial
position., but are presented solely as supplementary information. Allocation
among accounts were based on unaudited data obtained from district records
for internal management purposes, and accordingly we do not express an
opinion on such allocations. In our opinion, except for allocations among
accounts, the supplemental statements are fairly stated in all material
respects in relation. to the basic financial statements taken as a whole.
Reno, Nevada f
March 22, 1974
•w
f
i
Truckee Donner Public Utility District
SCHEDULE OF FIXED ASSETS
Year Ended December 31, 1973
Balance Balance
December December
31, 1972 Additions Reductions 31, 1973
Aak Electric plant
Classified utility plant in service
Truckee
Land and land rights $ 9,695 $ 9,695
.•••� Structures and improvements 10,454 101-454
Station equipment 111,361 111,361
Poles, towers and fixtures 197,029 $ 38,451 $ 996 234,484
Overhead conductors
and devices 323,331 24,092 3,958 343,465
Underground conductors
and devices 15,295 34,043 49,338
Line transformers 146,808 48,234 195,042
PON Services 65,680 8,367 118 73,929
Meters 36,550 12,100 682 47,968
Street lighting and signals 53,594 53,594
Donner
Land and land rights 6,349 6,349
Substations 81,173 81,173
Poles, towers and fixtures 98,369 262 198 98,433
Overhead conductors
Now and devices 112,659 18,199 766 130,092
Underground conductors
and devices 1111845 1,388 13,233
Line transformers 69,900 2,649 67,251
m- Services_ 46,156 46,156
Meters 18,950 282 18,668
Street lighting and signals 13,341 13,341
. Construction work in progress 1549177 78,377 232,554
-- 1,582,716 263,513 9,649 1,836,580
Water plant
Classified utility plant in service
"` Land and land rights 20,128 20,128
Wells and springs 126,323 126,323
Pumping equipment 56,594 9,527 66,121
Reservoirs and tanks 128,717 128,717
Transmission and
distribution mains 722,730 89,959 812,689
Service lines 125,868 13,443 139,311
Meters 32,763 ---- 2,198 430 34,531
Hydrants 49,188 6,658 55,846
Structures 33,907 33,907
Construction work in progress 30,186 3,138 33 324
1.,326,404 12923 ---ZT30 1,450,897
General plant
Land. and land rights 37,003 37,003
Structures and improvements 98,655 98,655
�. Office furniture and equipment 19,098 19,098
Transportation equipment 96,197 7,828 88,369
Tools and shop equipment 10,126 1,005 11,131
Laboratory equipment 899 899
.� Miscellaneous equipment 2,181 2,181
Communication equipment 7,072 650 7,922
271,231 1,855 7,828 26531258
OWN
Electric plant acquisition adjustment
Donner Lake acquisition 11,451 11,451
$3,191,802 $390,291 $17,907 $3,564,186
r _
.M. 15
r+.
Truckee Donner Public Utility District
-- ELECTRIC AND WATER DEPARTMENTS COMBINED
.SCHEDULE OF DEPARTMENTAL REVENUE AND EXPENDITURES
one Year Ended December 31 1973
.- Electric Water
Department Department
Donner Truckee Total Total Combined
...�, Operating revenue
Charges for service S3059229 $620, 191 $9259420 $80,205 $19005,625
Other revenue 5,567 20,269 25,836 79225 339061
3109796 6409460 951 ,256 879430 19038,686
Less consumer discounts
and allowances 3,746 2,476 6,222 186 6,408
�. 307,050 6371984 945,034 879244 120322278
Operating expenditures
Cost of power 165,003 3409057 5052060 505,060
.Transmission 229974 22,974
Distribution 149,330 339309 479639 187275 659914
OWN _Consumer accounting _ -and collecting 171,824 21 , 156 381,980 79238 46,218
Depreciation
.. and amortization 149735 399814 54,549 42,486 97,035
211 ,892 4347336 6469228 905973 _ 7377 20l
.95, 158 2039648 298,806 ( 39729) 2959077
•- Interest on
long-term debt 6,603 13,719 20,322 20,322
88,555 18%929 278,484 ( 3,729) 274,755
Other expenditures
Administrative and
-. general salaries 557 1 , 156 19713 158 1 ,1871
-- Director fees
and expenses 1 ,770 39679 59449 504 5,953
Special services 69689 139899 20,588 11902 223,490
Office supplies
and expenses 89103 169837 24,940 2,305 279245
.�.. Insurance 29224 4,621 69845 632 71477
General plant
maintenance 877 19821 29698 249 21947
Miscellaneous 3, 199 6,647 9,846 910 102756
239419 48,660 72,079 69660 789739
own NET OPERATING MARGINS $ 659, 136 $1419269 $206,405 ($109389) 196,oi6
Nonope ra t i ng margins
.�• 'Net merchandise
and j obwo rk revenue 10,092
Interest revenue 15,924
-w Miscellaneous revenue 999
NET MARGINS $ 223,031_
16
r
onto Truckee Donner Public Utility District
ELECTRIC DEPARTMENT
COMPARATIVE SCHEDULE OF REVENUE AND EXPENDITURES
Years Ended December 31 , 1973 and 1972
1973 1972
Amount Percent Amount Percent
Operating revenue
Residential sales $398,917 42.21 $254 595 39.40
Commercial and
industrial sales 510, 107 53.98 364,677 56.44
Public street
and highway sales 39125 .33 29635 .41
Sales to public
authorities 129251 1 .30 99,663 1 .50
Other electric
revenues 261856 .2.84 171,434 2.70
951 ,256 105.66 6499004 100.45
Less consumer discounts
and allowances 62 222 .66 22899 .45
945,034 150.00 6469105 100.00
Departmental expenditures
Cost of power 505,060 53044�' 345,452 53.46
_., Distribution 47,639 5.04 369672 5068
Consumer accounting
and collecting 389980 4. 12 289622 4.43
Depreciation
and amortization 54,549 5.78 4% 163 7.61
6461,228 68.38 459,909 71 . 18
2989806 31 .62 186, 196 28.82
-,, Interest on
long-term debt 20Y 322 2 15 207201 3.13
$278,484 29.47 $1659995 25.69
17
Truckee Donner Public Utility District
WATER DEPARTMENT
COMPARATIVE SCHEDULE OF REVENUE AND EXPENDITURES
Years Ended December 31 , 1973 and 1972
1973 1972
Amount Percent Amount Percent
Operating revenue
Residential sales $509425 57.80 $43,630 51 .37
Commercial sales 27,960 32.05 299409 34.63
Public _fire protection 1 ,820 2.08 1 ,74o 2.05
Other water revenue 7,225 8.28 109306 12.-13
87,430 100.21 85,085 100. 18
Less consumer discounts
own and allowances 186 .21 153 . 18
87,244 100.00 842932 100.00
Departmental expenditures
Transmission 22,974 26.33 15,293 18.01
Distribution 181275 20.94 14, 157 16.67
Consumer accounting
and collecting 79238 8.30 63,969 8.20
Depreciation
and amortization 42,486 48.70 432257 50.93
90,973 104.27 79.7676 93.81
($ 33,729) ( 4•�7) $ 51,256 6.19
wow
.., 18
Truckee Donner Public Utility District
ELECTRIC AND WATER DEPARTMENTS COMBINED
•-- COMPARATIVE SCHEDULE OF REVENUE AND EXPENDITURES
Years Ended December 31 , 1973 and 1972
1973 1972
•--• Amount Percent Amount Percent
Operating revenue $lt0329278 100.00 $7319037 100.00
Departmental expenditures _ 757,523 73.38 559,786 76.57
274,755 26.62 1717251 23.43
General and administrative
expenditures
Salaries 1 ,871 . 18 139994 1 .92
Director fees
and expenses 5,953 .58 61, 125 .84
"' Special services 221,490 2. 18 189230 2.49
Office supplies
and expenses 271,245 2.64 209955 2.87
one Insurance 79477 .72 5,297 .72
General plant
maintenance 29947 .29 2,886 .40
Miscellaneous 109756 1 .04 32601 .49
789739 7.63 71 ,088 9.73
1962016 18.99 $100, 163 13.70
19