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HomeMy WebLinkAbout1973-08-21 Min - Board AUGUST 21 , 1973 The regular meeting of the Board of Directors of the Truckee-Donner Public Utility District was called to order by President Roy Waters at 7: 30 p.m. in the conference room. ROLL CALL: H. Loehr, present ; D. Anderson, present ; N. Stone , present; R. Anderson, present ; R. Waters , present. GUESTS PRESENT: Winifred Loehr, John B. Williams , Keith Meadow, R. C. Suania, Daven Whitney, Mrs . James McDade , Mayme Green, Max Layman, J. Norris , Raymond F . Murphy, Charles .--- Loughran, R. E. Smith, Nola Smith, Ralph Garten, Mr. & Mrs . Nick Wagner, Serene Garten, Ralph Norris , Ron Osborn, Linda Layman, John Erickson, Dr. Wayne Smith, Fred Damavandi , Ray Murphy, Jack Pearse , Richard Rhodes , Charles Schultz, Ernie Ramey, Dr. John Sharp , Dan Cook, Jim Cranmer, John de Horn, Helga Mueller, Mary Jane Cassidy, Rex Reid, Jeanne Sollen, Mrs . Arnold Christensen, others . . . EMPLOYEES PRESENT: Paulus , Krajewski , Kinzie . MINUTES OF AUGUST 7, 1973 The President asked if there were any additions , corrections , or omis- sions to the Minutes of August 7, 1973 . It was moved by Director D. Anderson and seconded by Director Loehr that the Minutes be approved as read. All aye ; motion carried. BILLS FOR BOARDS APPROVAL Director D. Anderson asked why we were paying for the court reporter at the Beaver' s trial. He was told they were independent reporters and not supplied by the court. The cost is to be paid by the pros- ecuting attorney. Mr. McDonough has forwarded the bill to us . It was moved by Director Loehr and seconded by Director R. Anderson that the bills be paid. All aye; motion carried. DEFER SUBSTATION CONSTRUCTION Mr. Frank Beardsley, our consulting electrical engineer, has submitted a written report on his findings on the Lakeworld substation. The coils in the oil circuit breaker have to be replaced in the Truckee substation. Regulators will be installed on the Lakeworld property before winter and we may have to use capacitors at the end of the line . If we do, they will be smaller than what we originally were going to install due to the regulators being installed. By doing all this , we can postpone installing the Tahoe Donner substation this year and possibly next year, also. SURPLUS LAND We have had four different realtors look at our surplus land for their appraisal ' s . The prices for most of the land varied considerably. We will get the prices in writing and send them to each director. Mr. & Mrs . Ralph Tollefson have lowered their price for the land they �--- own surrounding our Tonini Springs . They want $10 ,000 for the 6 . 3 acres plus the land at the end of West River Street that is presently surplus . There is about 1- 1/2 acres at the end of West River Street and has the easement to the mobilehome going through the parcels . Tom Paulus was instructed to find out the legality on whether any further construction in the area of the Tonini Springs could be stopped and how many homes can be developed onihe Tollefson' s 6 . 3 acres . RATE INCREASE - MARTIN MC DONOUGH Martin McDonough, our attorney in this matter, spoke to the board about retaining him to fight the proposed rate increase by Sierra Pacific of 14. 80 . The Board did not know what they wanted to do as yet and asked if September 4 would be too late for him to start proceedings on the Page 151 Rate Increase . . . continued - 2- August 21 , 1973 case. Mr. McDonough did not think this would put things too far behind. The board defered action until the next regular meeting. LTD CAR BID There was only one bid for the surplus Ford LTD. It was from Eldon Tonini in the amount of $1, 800 . The minimum bid was set at $2 ,100 . It was moved by Director Stone and seconded by Director D. Anderson that the board accept Mr. Tonini ' s bid in the amount of $1 ,800 . This motion is contingent on manager checking with our legal counsel in the �-- morning to see if the board can legally accept Mr. Tonini ' s bid since it was lower than the minimum bid set for the automobile . DART INDUSTRIES - ELECTRIC & WATER CONTRACT Tom Paulus reported that Lakeworld is willing to renegotiate the electric contract that is presently in effect. The present contract does not have an escalation clause . Fred Damavandi and Mr. Paulus will get together sometime before the end of the year to work out an electric contract closer to today' s installation costs . Regarding the water contract , Mr. Paulus met today with Martin McDonough, Dan Cook, and Dart representatives . There were four points agreed to . Briefly, they are: 1. There may be an alternate source of water other than the Donner Lake intake . This would be at the junction of Cold Stream and Donner Creek. Dan Cook estimated it would cost $1,600 ,000 and Dart has agreed to give the district a letter of credit if this source is used. 2 . We will have to have a well , tank, and pipelines located behind the Forest Service in Truckee . We would put the tank on Forest Service land, which would be the shortest way to the project . The well , according to geologists , could pump about 500 gallons per minute. This , Dart is willing to pay for in its entirty. 3. A study will be made of our surface and subsurface water facilities . Dart has agreed this should be started very soon and will pay the costs of this study. 4. In the event Donner Lake is not resolved, we will have to come up with alternate sources of water to supply the subdivision. The alternate sources must be capable of producing 4,000 gallons per minute. All four of the above items are to be at Dart' s expense. In return for all of the above , Dart desires a letter to the Department of Real Estate saying the district will supply the Tahoe Donner subdivision water and has adequate facilities to do so. The four terms will have to be presented to the State agencies involved and our attorney for their approval . Mr. Damavandi spoke of how the original idea came about for the pumping of water from Donner Lake : a report made in 1968 naming Donner Lake a prime source of water for the future . The water rights for this water were obtained from Sierra Pacific in 1970 . There was a question from the audience asking Mr. Damavandi who financed the pipeline into Donner Lake . His answer was that it was being paid by Dart Resorts . Director Loehr asked what the approximate drop of the lake would be as a result of the pumping for Tahoe Donner. Dan Cook, of Cook Associates an engineering firm, said his analysis was that the lake would drop about eight inches in a dry season by 1985 . Ray Murphy, also an engineer, said he made a study of the water level history on Donner Lake and it has for years had a fluctuation of about a 10-12 foot drop in the winter months due to the drainage from the lake to compensate for the winter seepage. Dr. John Sharp commented on the ground water availability in Truckee . He said that it was geologically feasible to build a 500 gpm well in the Cindercone area. This is in the area of the Forest Service . Studies are still being made and the location is not definite . Dr. Sharp also noted that there has been a considerable ground water basin dis- covered since the report issued by Walters , Ball , Hib don and Shaw in November of 1968 denoting Donner Lake as a prime source of water, due to the unavailability of water from other sources . Another paint brought out by Fred Damavandi was that the water rights for Donner Lake were sold to Sierra Pacific in 1943 from the Donner Lake Development Company. Sierra Pacific then sold some rights to the Page 152 Dart Resorts . . . continued - 3- August 21 , 1973 Truckee-Donner PUD in 1970 . He stressed that there has been nothing different done in the past 30 years except pass the rights from one company to another. The townspeople present did not feel the water level would stay as low as predicted. They did not want to see the level drop eight feet as some indicated. Another guest present asked why an environmental report was not filed at the beginning of the construction of the Donner Lake intake ; how could the law allow this? Mr. Damavandi reminded her that just recently environmental reports were required and not at the time of the contract between Dart and Truckee-Donner PUD. Mr. Rex Reid, a local contractor, pointed out to the board that the townspeople were not concerned with the 2 , 300 homes at Tahoe Donner but rather the 80 ,000 people that he projected would populate the town and use the water from Donner Lake as their water source. He felt this would be the ultimate goal of the district - to use Donner Lake as its water supply for the area. Attorney McDonough spoke on the legal aspects of the contract with Sierra Pacific on the water rights . The first 2 ,000 feet can be withdrawn from Donner Lake without replacement ; an additional 2 ,000 feet can be with- drawn but 50% has to be replaced with water from Stampede Reservoir. He said whatever limits applied to Sierra Pacific when they had the water rights , would apply to the district in their removal of water from the lake . When asked how the water will be measured, it was answered that the con- tract with Sierra Pacific states it will be measured at the point of diversion. Many of the guests present thought the hearings and meetings for the Dart contract and subdivision were not publiced properly and were behind closed doors . Both board members and Lakeworld represent- atives informed them that there were a series of public hearings held especially in Truckee so that people could attend. Mr. Damavandi felt these hearings were the most publiced in the entire County. Dan Cook pointed out that new development would be forced to build in a vacinity where the facilities and utilities would be available which he said is in the East end of Truckee. He controdicted what Rex Reid earlier said about Donner Lake supplying 80 ,000 people . It would be physically impossible due to the inability to obtain property in that area. Any new development will be forced to build in the East end of town. The County Planning Department knows of the availability of fac- ilities and does not allow development in an area where resources cannot be obtained. Mr. Damavandi said that he has built numerous water intake systems ; and until the Donner Lake intake , he and the consultants involved did not know that the State Lands Commission requested a use permit. A gentleman in the audience asked if there was an estimate of the water level drop at the time of the purchasing the water rights from Sierra Pacific. Nelson Stone answered that he estimated it would drop the same amount of inches as Dan Cook estimated - eight inches . He did his figuring at the time of the contract with Sierra Pacific, 1970 . Another question asked was where complaints can be sent for the intake system. Fred Damavandi said they can be directed to the State Lands Commission in Sacramento. The State Lands Commission, according to Mr. Damavandi , will notify the organizations that have made formal protests to the intake system of the date and time of the hearings . The organizations can then have a representative present at the hearings . Martin McDonough spoke briefly on the legal aspects of the proposed agreement with Dart Resorts . In addition to the points mentioned by by Mr. Paulus earlier, Mr. McDonough said that if any of the wells constructed by Dart prove to be inadequate within a years notice , we will then construct, at Dart' s expense , an intake system and treatment plant near Teichert' s plant and pipe the water to the Tahoe Donner subdivision. This facility will have a 4,000 gallons per minute capac- ity less the capacity of the wells that have been constructed by Dart . After the four points covered in this contract are approved by the appli- cable government agencies , the District' s attorney, the Board of Directors of the PUD, and Dart Resorts , a letter will be written from the district to the Real Estate Commission stating the district has adequate facilities to supply water to the Tahoe Donner subdivision. Director Loehr asked Page 153 Dart Resorts . . . continued -4- August 21 , 1973 Mr. McDonough what the estimated cost would be to construct the intake system off the Truckee River. Mr. McDonough said it would cost - about $1,600 ,000 . He also said the district will use the most economical source available . A gentleman in the audience asked who was doing the studies for the district to see if taking water from various streams would have an effect on the water level at Donner Lake . Roy Waters said Dr. Sharp was doing this study. The man pointed out that Dr. Sharp is doing the work for the district and being paid by Dart Resorts . He did not feel Dr. Sharp' s study would be objective because he is doing the study for a company that has a definite interest at stake . People in the i audience were concerned as to where the water in the stream for the river intake system would come from. Dan Cook answered that it would be coming out of Donner Lake in its overflow. It will not be taken from an underground stream. As a result of this , there would be a greater impact on the lake level. Nelson Stone asked Dan Cook how long we would be able to supply Tahoe Donner under our present system. Based on our present system, we could not serve them any water. Duane Anderson asked that the contract guarantee $20 ,000 for the geological study and $200 ,000 for the proposed well and have this included in the letter of credit. Martin McDonough said this would be no problem. Director H. Loehr moved that we authorize Martin McDonough to go through with the necessary approvals for the agreement with Dart Resorts . This motion was seconded by Director Stone. ROLL CALL: H. Loehr, aye ; D. Anderson, aye; N. Stone, aye ; R. Anderson, aye ; R. Waters , aye . SO MOVED. BARTLE WELLS - FINANCIAL STUDY Tom Paulus introduced Mr. Jack McMinn to the board who was represent- ing Bartle Wells Associates , a financial consulting firm out of San Francisco. Mr. McMinn presented a proposal stating the areas they would cover in their study. In addition to the expected growth of the district -- and the demands accompanying this growth, he and Mr. Paulus discussed the district being "hemmed in" by the electric wholesale supplier who, outside the area, is our competitor with a lower rate structure . Mr. McMinn was also aware of the PUD' s possible merger with the Sanitary District. Within our study, it will be necessary for some engineering imput. If Bartle Wells is chosen to do the study, the fee would be about $5,000 which does not include any engineering consultation. Mr. McMinn would be the principal employee assigned to the project. The board decided to hear from a representative from the Bank of America's Financial Consulting department who will be present at the next regular meeting. MANAGERS REPORT We had problems with the old ladder truck. Oneof our employees took it down to Berkeley for repair and it seems to be operating properly now. The house behind the PUD office has been painted and has new tenants . We are covering the old shaft on the tunnel at the Forest Service . Mr. Paulus wanted to prepare the directors for a bill that we will be getting in the amount of $25,000 for transformers ordered for Tahoe Donner condominiums . With supplies as sparse as they are , we ordered these not knowing when we would be able to get them. Next year, we are going to order as many supplies as can be predicted will be needed in the spring so we do not have any delay. One of our employees has suggested having a company picnic sometime in the future ; probably after the Labor Day weekend. This would be for employees , directors , and their families . The directors were all agreeable to this . Mr. Jim Cranmer came before the board asking for a letter from the district giving the Planning Department an assurance that they will service Tahoe Donner Unit 9 with water. The final map will be filed on September 12 and the only Planning Commission meeting before then will be Thursday, August 23. Mr. Cranmer requested a letter prior to Page 154 Managers Report . , . continued -5- August 21 , 1973 this meeting. Mr. McDonough did not feel we should give the Planning Commission an assurance of water availability as we do not have the alternate plan devised. One should not be given until the contract proposed tonight is agreed upon by all parties previously mentioned. It could be specified in the letter that water would be available pro- viding existing and subsequent policies and agreements were adhered to. There being no further business to come before the board, it was moved . by Director Loehr and seconded by Director R. Anderson that the meeting be adjourned. All aye; motion carried. The regular meeting was adjourned by the president, Roy Wate s , at 10 : 45 p.m. BY: ROY WATERS, PRE NT OF THE BOARD MERRILYN KINZIE, RECQADING SECRETARY c Page 154