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HomeMy WebLinkAbout1974-05-21 Min - Board MAY 219 1974 The regular meeting of the Board of Directors of the Truckee-Donner Public Utility District was called to order by the president at 8 : 00 p.m. in the conference room of the District. The President announced that prior to the opening of the regular meeting , an executive session was held to discuss administrative salaries . Nothing was decided and further consideration will be at the next regular meeting. ROLL CALL: J. Craig, present ; D. Anderson, present ; P. Sutton, present ; R. Anderson, present ; R. Waters , present. EMPLOYEES PRESENT: Paulus , Kinzie , Krajewski , Grow and Silva GUESTS PRESENT: Martin McDonough, Harold Heidrick, Fred Damavandi , Ma*rey Fish, John Stralla, George Bryson, Fosten Wilson, Joe Joynt, Charles Doskow. MINUTES OF MAY 72' 1974 The president asked if there were any additions , corrections , or omissions to the minutes of May 7, 1974. It was moved by Director R. Anderson and seconded by Director D. Anderson that, the minutes be approved as written. All aye; motion carried. BILLS FOR BOARD' S APPROVAL The Board members questioned the various bills for professional fees . It was moved by Director Craig and seconded by Director R. Anderson that the bills be paid. All aye; motion carried. Director Sutton asked for either written correspondence on the ground water study being conducted by Dr. John Sharp of Hydro-Search or a presentation by Dr. Sharp at a board meeting. She was not on the board at the time the study was authorized and desired information on �--- the study. DART POWER AGREEMENT The Dart power agreement was discussed; a copy of which is attached as part of the minutes. Director Craig asked Hal Heidrick if there would be a guarantee or warranty for the electric line construction done by the contractor. Mr. Heidrick stated that the plans and specifications will be approved by the District and construction will be approved by the District . Mr. Heidrick said that he had never heard of a warranty on electric line construction. Director Craig asked if Dart representatives objected to P.U.C. General Order 128 regarding underground rules to be added to the contract under construction specifications . Dart had no objections to this and it was added to the contract. Director Craig asked if the cost for inspection normally is limited to one percent of the total cost of construction. Hal Heidrick was not sure of that. Director Craig asked if the materials that are to be given to Dart for construction has been determined. Mr. Paulus informed him that it had not as he was waiting to have Harold Heidrick determine what ""' would be needed for the Donner Lake line that is to be rebuilt this summer. The contract states that an inventory would be taken and delivered to Dart which has not been done. It was decided to delete this requirement. Discussion on adding a warranty to the contract continued. Martin McDonough suggested adding a sentence to the effect, 'All contracts entered into by Dart for such construction will name the district as the third party beneficiery. ' This would include labor and materials . However, it was decided to omit this from the contract on the advice from the District' s electrical consultant , Hal Heidrick. It was moved by Director R. Anderson and seconded by Director D. Ander- son that Resolution 7402 be adopted which allows for the execution of the Dart Electric Agreement. ROLL CALL: J. Craig, aye; D. Anderson, 9 Dart Power Agreement . . . continued aye; P. Sutton, aye; R. Anderson, aye; R. Waters , aye. So moved. Director Sutton asked Attorney McDonough to bring the board up on the suit regarding the Donner Lake intake. Mr. McDonough stated that the District has applied to the State Lands Commission for a permit on the Donner Lake intake facilities . This application was filed last October. Jones and Stokes was retained by the District and Dart to do an environmental report on the intake facilities to accompany the application to the State Lands Commission; the first draft was completed on December b. The State Lands Commission after this started their own report and required Jones and STokes to revise portions of their December b report. The final draft report, accord- ing to Mr. McDonough, has been being put off for several months. However, when it is finalized, a copy will be sent to all interested agencies for comment and made available for public inspection and review for a period of sixty days . After this , a public hearing will be held on the report. The public hearing will be conducted by the State Lands Commission. Subsequent to this , a final report will be made by the State Lands Commission having a 30-day waiting period before any action can be taken by the Commission on the application. Director Sutton asked if the board members are expected to read the draft from Jones and Stokes , since they were engaged by the District, and comment on errors or misleading information. Mr. McDonough stated that the board may make comments at any time during the preparation. Any changes in the environmental report have to be approved by the State Lands Commission. Director Sutton asked Questions of Mr. McDonough on the Memorandum of Understanding between Dart, the District, Attorney General ' s Office , State Lands Commission and State Water Resources Board. P.U. C. EXAMINER' S REPORT Harold Heidrick presented a report on his examination of the district , according to provisions outlined in the Public Utilities Code . A copy of this report is on file in the district office for public Moon" review. His overall account of the district is that there are areas that need improvement such as updating of operations (i . e. : billing machine and warehouse/garage) . Other suggestions included: written rather than oral reports from the auditor and manager, shortening the length of the Board minutes , setting forth written policies of the district , policies on emergency procedures , shift- ing some of the workload from the manager to superintendent, keeping a record of complaints on file in the District office , cease to number poles as they are installed, and recommendations on correc- tion of deficiencies in the electric system. He also recommended fixing a hole in the bottom of a redwood water tank located at the forest service. However, his total picture of the operation was that the district is doing very well . Director Sutton Questioned the rate increase last February which resulted in the biggest profit in years . She also Questioned the proposed 4% increase for 1974. Mr. Heidrick recommended waiting until after the F. P. C. has made their decision on S.P.P.Co' s 150 increase to decide if the rates will need to be increased this year. Mr. Paulus presented a brochure on a 2-ton service truck with four- wheel drive, which would cost $21, 000. Mr. Paulus also proposed installing an auger on the District ' s boom truck purchased in 1972. Mr. Heidrick said the proposal sounded worth looking into and stated the district does not need two heavy vehicles as it would increase maintenance costs . Discussion on this was tabled until the next regular meeting so that Employee Wage and Benefit Discussion could be continued. EMPLOYEE WAGE AND BENEFIT DISCUSSION The board and union agreed to the benefit terms for the 1974 contract but the employees desire the same percentage wage increase as Sierra Pacific. Mr. Stralla stated that otherwise next year the employees would be requesting wage increases to equal Sierra Pacific' s if their increase is lower than Sierra Pacific' s . Page Two - May 21 , 1974 �� Employee Wage and Benefit Discussion . . . continued The board decided not to grant any increase over 72% at this time ; and if Sierra Pacific ' s increase is greater than 72% , it will have to be discussed and negotiated at the next board meeting. Director R. Anderson asked that the new classification, Part-time Laborer, be required to have a valid California driver' s license as do the other classifications of this nature. The other agenda items were tabled until the next regular meeting due to the hour of the night . President Waters asked what happened on the 2500 KVA substation trans- former. Mr. Paulus informed the board that a bid from Westinghouse in the amount of $13, 694 arrived in the mail the day following the bid opening. General Electric told Mr. Paulus that this was a good price and also recommended that the district purchase the transformer from Westinghouse. Delivery is 48 weeks after receipt of order and prices are firm except for insulating oil . It was moved by Director R. Anderson and seconded by P. Sutton that management be authorized to purchase a 2500 KVA transformer according to Harold Heidrick' s recommendation. All aye; motion carried. A summons was received today at 7 : 00 p.m, on the W. River Street mobile home park from Wally Stevens representing Adele Jones . The suit is asking $300, 000 total ; $100 , 000 each for Adele Jones and Arthur Rich for general damages and $50 , 000 punitive damage each. Mr. Paulus brought up a requirement in the Mutual Assistance Agree- ment concerning insurance. The agreement presently states that an insurance policy will be maintained by both parties against any loss , damage, expense, or liability arising out of furnishing aid. Nothing was decided on this and the matter was tabled until the next regular meeting where it will be discussed again. The Sanitary District has written and is interested in attending a meeting with the PUD on a merger study. President Waters informed the board that he would discuss this with the Sanitary District and have them pick a date for the meeting. There being no further business to come before the board, it was moved by Director John Craig and seconded by Director R. Anderson that the meeting be adjourned. All aye ; so moved The regular meeting of the Board of Directors was adjourned by Presi- dent Waters at 12 : 05 a.m. i TRUCKEE-DONNER PUBLIC UTILITY DISTRICT BY: ROY ATE ESIDENT OF THE BOARD 45 MERRILYN INZIE, RE ORDING SECRET Page Three - May 21 , 1974 RESOLUTION 74_U of the TRUCKEE-DONNER PUBLIC UTILITY DISTRICT APPROVING AND AUTHORIZING EXECUTION OF 1974 TAHOE DONNER ELECTRIC POWER LINE AGREEMENT BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE TRUCKEE-DONNER PUBLIC UTILITY DISTRICT AS FOLLOWS: 1. That said Board of Directors does hereby approve the terms , conditions , and provisions of said Agreement between Truckee-Donner Public Utility District and Dart Industries , Inc. , regarding electrical power service for Tahoe Donner Development, as more particularly shown in Exhibit "A" attached hereto, and the president and secretary respectively of the Board of Directors of this District shall be and they are each hereby authorized and directed to execute said Agreement for and on behalf of the District. Passed and adopted at a regular meeting of the Board of Directors of the Truckee-Donner Public Utility District duly called and held in said District on the 21st day of May , 1974 , by the following roll call vote : AYES: J. Craig D. Anderson P. Sutton R. Anderson R. Waters NOES: None , ABSENT: None TRUCKEE-DONNER PUBLIC UTILITY DISTRICT BY: Pres nt of t e Board ATTE T: 9 1974 TAHOE DONNER ELECTRIC POWER LINE AGREEMENT AGREEMENT made this 2=st day of May, 1974, by and between Truckee-Donner Public Utility District , a local public agency of the State of California, hereinafter referred to as "District' and Dart Industries Inc. , a Delaware corporation, hereinafter referred to as "Dart" . WITNESSETH: WHEREAS the District and Dart' s predecessor, Lakeworld Development Company, on June 1 , 1970 , entered into an "AGREEMENT BETWEEN TRUCKEE-DONNER AND THE LAKEWORLD DEVELOPMENT COMPANY RESPECTING ELECTRIC POWER SERVICE FOR TAHOE NORTHWOODS DEVELOP- MENT" which agreement was recorded June 19 , 1970 , in Volume 516 , page 356 of the Official Records of Nevada County, California, and WHEREAS Dart on February 23 , 1971 , having purchased the development ment which was the subject of said Agreement (and changed the name thereof to "Tahoe Donner" , which is referred to herein as the project") accepted the assignment thereof from Lakeworld, and '� ect" assumed all Lakeworld' s obligations thereunder, which assignment and assumption were consented to by the District , and WHEREAS said Agreement remains in effect , and the parties -wish to revise it to fundamentally alter the obligations of each with respect i h to electric power line construction in the Tahoe Donner Development . NOW TH EREFORE,, in consideration of the mutual promises herein contained, and intending din to be legally bound, the parties hereto do V . -1- qP ' covenant, contract and agree as follows : ONE. Dart will construct , at its own expense , all as yet unconstructed electric power 12470/7200 volt Y primary distribu- tion lines through the project. Such construction shall consist of clearing , pole installation and installation of primary dis- tribution lines . TWO. Dart and the District will jointly (and already have 'n part) cause a qualified independent engineering firm to design i sa id distribution lines . The cost of such design will be borne by Dart. Said system, as designed, will be reviewed by the District within fifteen (15) days of its submission, and the District will may ke ever effort to expedite such review and its approval of the design. THREE. The speci fication for said system shall be in accord- ance with Rural Electrification Administration standards and shall meet the requirements of California P.U. C . General Order 95 and General Order 128 where applicable. FOUR. The District shall inspect the construction of each phase of the main distribution line to assure itself that the works are installed in accordance with the approved plans an specifications . . The District shall notify Dart in writing as to any deviation or failure to construct pursuant to the approved p plans and specifications , and Dart shall correct such deviation or failure promptly. Prom tl upon completion of installation of the works of each phase in accordance with the approved plans and specifi- cations , the District shall notify Dart in writing of the District ' s acceptance of construction of said phase . FIVE.E Upon inspection of any part of the system, and p . - 2- acceptance thereof by the District , all title of Dart in such part of the system shall be conveyed to District , and the Dis- trict will assume all responsibility for future inspection, repair and maintenance of the system, and shall be forever thereafter responsible therefor. SIX Dart will compensate the District for its cost of inspection of the system at the Districts established, then- existing rate. In no event shall the total amount charged for such inspections exceed one percent (1%) of the total cost of construction to Dart . SEVEN. The District will pay to Dart , simultaneously with the execution of this agreement , all funds in the interest-bear- ing trust account previously established to receive funds paid by Dart under the prior Agreement , which amounts at the date hereof to $52 , 513 , which funds have heretofore been paid to the District under the Agreement and not expended by the District . EIGHT. The District will deliver and convey to Dart , with- out charge , all power poles (approximately 140 in number) and all overhead type cable and pole furniture acquired by and delivered to the District for installation at Tahoe Donner and not yet installed. NINE. The District will pay Dart upon execution of this agreement , the sum of Seven Thousand Three Hundred Eighty Nine Dollars and Eighty Four Cents ($7 , 389 . 84) , which represents interest earned by the District during the term of the prior Agreement in the Trust Account referred. to in paragraph SEVEN while such funds remained unexpended. TEN. The District will do all necessary hookups of elec- tric service to distribution lines within the project , and pro- vide and install (without charge to Dart) all necessary 120/240 volt secondary conductors , services , transformers , and meters . The District may charge residents of the project its usual fee it } for hookup service. ELEVEN. Hookups to completed and inspected buildings will be performed within seven (7) days after receipt of written request therefor absent extenuating circumstances . The District acknowledges that any pattern of delay in such hookups may cause damage to Dart , by reason of delay in closing house contracts , and customer dissatisfaction. TWELVE. The District will assign to Dart all rights deriv- ing from any existing undertaking of Pacific Telephone Company. The letter of the Telephone Company to the District dated April 4 , 1973, is appended hereto as Exhibit A. THIRTEEN. Dart may, at its own expense , cause the books and records of the District to be audited to assure that the account- ing of the District under the prior Agreement has met acceptable standards. The amounts specified in paragraphs SEVEN and NINE are expressly made subject to such audit. FOURTEEN. The District acknowledges that all construction required to be performed by Dart under the prior agreement has been satisfactorily performed and accepted ; that Dart has made all payments required to be made thereunder and is without obligation to make any further payments of any kind or nature in connection with that agreement. Such construction may be modified by the District as required for connection with lines to be built under this Agreement, or for any other reason. ,. -4- ' . FIFTEEN. Notices or requests from either party to the other shall be in writing and shall be delivered or mailed, postage prepaid to the following address , or any change thereof of which i the other party is given notice , and shall be effective upon delivery or upon mailing to Dart : Dart Resorts 4676 Admiralty Way Marina del Rey, California 90291 Attention: President to the District: Truckee-Donner Public Utility District Truckee , California 9S734 SIXTEEN. This agreement shall be binding upon and inure to the benefit of the successors and assigns of both parties. Dart shall not assign any of its rights , duties or obligations under this agreement without the prior written consent of the District , which consent shall not be unreasonably withheld. SEVENTEEN. From time to time when requested by Dart as to a particular unit of the project , the District shall give assurances of electric service to such unit by the District in accordance with this agreement which are necessary in connection with the following : (a) The obtaining by Dart of final public reports from the State of California Real Estate Commissioner for such unit . (b) Any other approvals by governmental agencies required in order to allow Dart to subdivide the land in said unit and sell the subdivided lots and parcels thereof. (c) Any assurances required by private contractors or Dart purchasers or prospective purchasers . EIGHTEEN. Nothing herein contained shall be deemed to limit , restrict, or modify any right , duty or obligation given, granted or imposed upon the District by the laws of the State of California �, _ S_ now in effect , or hereafter adopted, nor to limit or restrict the E' power or authority of the District, including the enactment of any rules , regulations , resolutions , or ordinances , including without limitation creation of service zones and rate differentials appli- cable within the project area which may n6t be applicable else- where. NINETEEN. To the extent that Dart retains ownership of any lots to which electric service is available , it shall pay the same rates , tolls , and charges levied by the District as any other lot owner. TWENTY. This agreement supersedes in its entirety the prior Agreement and al.l .other agreements written or oral between the part:i:Q�1*sy., with r-espect to the subject matter hereof. Each party shall be--withoti`t"-further ..liability to the other with respect to electric power distribution lines , except as expressly provided herein. TWENTY-ONE. The execution and delivery of this Agreement , and all acts to be performed hereunder, have been duly and law- fully approved by the District by resolution appended hereto as Exhlit B and properly authorized by Dart. IN WITNESS WHEREOF the parties hereto have this day set their respective hands and seals by their representatives there unto duly authorized. PART INDUSTRIES INC . (SEAL) By TRUCKEE-DONNER PUBLIC UTILITY DISTRICT (SEAL) By 6 ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF NEVADA On this 22nd day of May 1974 , before me Gloria A. Ratto personally appeared Roy Waters and E. T. Paulus known to me F i to be the President and Secretary of the Truckee-Donner ' Public Utility District that executed the within instrument and acknowledged to me that such District executed the same. 11111111/11MIMI404AMM100131s►its cp,t," OFFICIAL SEAL F GiLQRlA A. RATTO Notary public, state of Ca#ifomia pri*e-pal Office in Neveds County ,may ComYnission Exp1ms 9yip 30, 1977 !it til,i►i111111111111136Imis111311511[plir ms4it'ne4ItItOtto11Pi1111i1Ei11111111111/Ii STATE OF CALIFORNIA COUNTY OF On this day of , 1974 , before me , personally appeared ..- and known to me to be the of the corporation that executed the within instrument and acknowledged to me that such corporation executed the same. I � EXHIBIT "A" E THE PACIFIC TELEPHONE AND TELEGRAPH COMPANY South Lake Tahoe, April 4, 1973 Truckee Public Utility District P. 0. Box 308 Truckee, California 95734 Attention: Ken Krajewski This is to confirm our conversation pertaining to pole setting in the TPUD boundary. The Pacific Telephone Company will attempt to set 40% of total poles used jointly by TPUD and Pacific Telephone Company projected for 1973. The Pacific Telephone Company Will also meet any prior commitment agreed upon between TPUD and Pacific Telephone Company. Yours v ry truly, Se for Enginee Y. 0. Box EN South Lake shoe, Calif* 9 570 5 •y STATEMENT OF GENERAL FUND Bank Balance - 5-2-74 682696 . 39 Deposits 709325 . 82 Approved Billings 100 , 257 . 85 Graybar brady markers 82 .31 Discounts (• 53) IBEW union dues 83. 50 R. P. Lewis 40. 00 Petty Cash 40. 80 (100 , 503. 93) PAYROLL 5-15-74 DT OT STANDBY GROSS NET Paulus 750. 00 547 . 22 Straub 8. 70 116. 00 661 . 20 464 . 11 Silva 629 . 20 494. 20 Grow 4. 99 590. 19 454. 16 Reynolds 585 . 20 449 . 52 i Lopez 585. 20 415 . 02 Sharp 65. 93 581 . 61 419 . 57 Krajewski 575 . 00 432 . 31 Drace 14. 26 432 . 26 328 . 15 Connell 421 . 52 299 . 04 Barry 3. 33 393. 17 321 . 34 Craig 13. 96 341. 32 255. 34 Kinzie 28. 98 312 . 34 248 . 45 Kirchner 268 . 40 194 . 72 Rose 72 . 00 64. 67 (5 ,387 . 82) 17198 . 61 Bank Balance - 5-20-74 333,130. 46 BILLS FOR BOARD' S APPROVAL Directors 500. 00 ,,.., George Cattan 258. 75 Paulus Chamberlain Jan. & Feb . billing 519 . 23 Cook Associates all T.D. , except $418 11,701 . 50 Tom Paulus 3 lunches 7 . 21 Alexander Grant dep. & accounting 2 , 000. 00 Bruning Division map copier 31. 80 Electrical Const. subscription 7 . 00 Sunrise Lab water tests 11 . 00 RTE tfr. Bushings 42 .61 R. G.autsche gas 7 . 30 Sangamo 80 electric meters 19539. 97 Nevada Safety Supply ear muffs 23. 44 NCR billing machine tape 14. 01 P.U.C. underground specs 5. 00 Hydro Search, Inc. water study 1 ,917 . 01 Gordon H. Huber Co. copy machine 104. 34 Brown-Milbery rewind motor 127 . 40 Fibreboard meter test room 616 . 65 M. McDonough legal 19893. 56 Maydwell & Hartzell fuses 30. 74 Northwest Public Power book 2 . 50 Utility Body ladder truck 45 . 05 Pacific Telephone pole attachments 186 . 25 Graybar guy wire 1 , 849 . 58 Atlantic Richfield gas & diesel 377. 63 Anixter Pruzan bolts & brackets 695 .12 General Electric coffee pot 15 . 37 Delta Lines 43. 50 Bancroft-Whitney utility codes 15 . 75 (14, 589 . 27) Bank Balance after payment of above 18 , 541. 19 i