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HomeMy WebLinkAbout1973-09-18 Min - Board SEPTEMBER 18, 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, Pat Sutton, Jeanne Sollen. EMPLOYEES PRESENT: Paulus , Kinzie, Krajewski r-- MINUTES OF SEPTEMBER 4, 1973 The President asked if there were any additions , corrections , or omis- sions to the Minutes of September 4, 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 The directors questioned the bill to O.B. ' s Board for after-hours meals in the amount of $54. 49. Mr. Paulus explained that this was for nine meals dating back to May. He has asked the employees not to overdo their priviledge. It was moved by Director Loehr and seconded by Director D. Anderson that the bills be paid. All aye; motion carried. DONNER LAKE UTILITY COMPANY PROPOSAL Tom Paulus reported that he has met with John Williams of the DLUC. Mr. Williams original offer for the company was $3, 240 ,000 . After this meeting, he brought his price down to $1. 5 million. There is a six-inch waterline around the lake according to Mr. Williams . Rueben Maki from the Fire Protection District has informed Mr. Paulus that this line should be a ten-inch line for adequate fire protection. With the present inadequate fire flow, the condominiums at the west end of the lake are installing a pump in the lake until they are able to construct a tank. As far as water rights are concerned, they own "such amount of said water as shall be necessary for domestic use upon or in connection with the land and resort that is now owned by the party of the first part. . . " Mr. Williams has been asked to have his attorney prepare a document confirming exactly what they have so the board may have our attorney examine it. According to Mr. Martin McDonough, a good estimate of how much the company would be worth is to take the book value less the depreciation. The investment is $350 , 000 less the depreciation of $70 , 000 is $280 ,000 . When you add in the company inventory and construction work of $17 ,000 , the total is $297, 000. The revenue for 1972 was $65 ,000 . Roy Waters thought we should have the service area of the DLUC sur- veyed and examined by the Fire Protection District to see how much they have for extreme fire capacity. This could be done with Dan Cook. Mr. Waters also did not want to buy the company without full access to water rights and find out exactly what right they have to Donner Lake water. This item was tabled due to the next item on the agenda,- Long-Range Financial Forecast, which would further study the DLUC proposal . LONE-RANGE FINANCIAL FORECAST Directors D. Anderson and R. Anderson met with Mr. Paulus and dis- cussed topics to be covered by the financial study. The eight topics were outlined in a memorandum to the directors , a copy of which is attached as part of the Minutes. The board wanted the eight topics sent to Mr. Aiello from Bank of America and Mr. McMinn . from Bartle Wells so that they can itemize the cost for each topic. Tom Paulus was asked to do this. Page 159 SURPLUS LAND - 2- SEPTEMBER 18 , 1973 Tom Paulus reported that we have written to five appraisers asking what their charge would be to appraise the eight parcels the PUD owns that are surplus . Mr. R. Dale Stayner who is an associate of Noble Murray quoted a price of $1 , 080 . Mr. Calven Aierick quoted a price of $1, 350 . The other appraisers either were not interested or did not respond to the request. Mr. Stayner thought he could have the appraisals completed between 45 and 60 days . Mr. Aerick could have them done in 45 days . N. Stone moved that the board accept Mr. Stayner' s and Mr. Murray' s quotation in the amount of $1 , 080 to appraise the surplus property. The motion was seconded by Director D. Anderson. ROLL CALL: H. Loehr, aye ; D. Anderson, aye; N. Stone , aye ; R. Anderson, aye ; R. Waters , no. SO MOVED. RESOLUTION 7321 - DONNER LAKE INTAKE Roy Waters read this resolution which authorizes the manager and legal counsel to make application to the State Lands Commission for the pipeline that has been constructed in Donner Lake . It was moved by Director D. Anderson and seconded by Director Loehr that Resolution 7321 be adopted. ROLL CALL: H. Loehr, aye ; D. Anderson, aye ; N. Stone, aye; R. Anderson, aye ; R. Waters , aye . SO MOVED. MANAGERS REPORT Tom Paulus reported on the draft proposal between Dart Resorts and the PUD concerning the Donner Lake intake . The most recent proposal has been sent to the directors and the State agencies that are invol- ved. The well and storage tank will be located in the Forest Service area. Originally they were going to run the pipeline straight to the Soma Sierra tank and then up to Tahoe Donner. Dan Cook suggested running the line through downtown and making two eight-inch additions ; -- one in the Gateway area and one in the Donner Trail area. From there the line would run to the Soma Sierra tank. Dan Cook thought the latter route would be within the $200 ,000 range Dart Resorts has agreed to. Director D. Anderson had some questions on the tentative agreement between Dart and the PUD. He did not think the agreement should state that the land for the well shall be acquired if needed. He thought this might be construed that the district is condemning land for private use of one subdivision. In Item 7 of the agreement , Mr. D. Anderson did not want the contract to state that the PUD will design and construct the well for Dart Resorts . He would rather it state Dart will design, construct and dedicate the well to the PUD. The other board members agreed with Mr. Anderson. Under Item 7B, the contract states that ". . . the district "shall not expend in excess of $200,000 under said paragraphs . . . " Director D. Anderson asked if this included all costs ; well development, pipelines , acquiring of land. . . Mr. Paulus assured Mr. Anderson that this does cover all expenses , as the contract has included the "well and appurtenances . " Another descrepancy in Item 7 is that it states Dart will not pay in excess of $200 , 000 for the well and appurtenances . Director D. Anderson wished that it would state "shall not expended in excess of actual cost which is estimated at $200 ,000 ," or something to this effect. H. Loehr mentioned that he had heard rumors about the waterlines being installed by Dart. He had heard that the waterlines were being buired with large rocks . i The board unanimously agreed to have Dart construct the well and its appurtenances . By doing this , it eliminates the other controversy items in the contract. Dart will no longer be necessiated to pro- vide a letter of credit for the well and the contract will not have to state that Dart will pay up to $200 ,000 for the well . They will be doing all of the work on the well and then dedicate it to the dis- trict. A bond will be put up stating Dart will construct the well. Duane Anderson also wanted the contract changed under Item 3 on page two. He thought 30 days to return to Dart any portion of the $20 ,000 that was not expended on the study inadequate time. He wanted it to read 45 days . Page 160 Managers Report - Dart Contract -3- SEPTEMBER 18, 1973 Duane Anderson asked Mr. Paulus to inquire with Martin McDonough if he thought Item 6 protects the district in the event a second well is drilled and proved insufficient , would Dart finance additional drill- ings . Tom said he would speak to Martin concerning this . Tom Paulus reported that we have received our revision to Resolution 7310 , Employee Agreement, which is now Resolution 7315 . This states that the maximum vacation accrual is 30 days and the cut-off day for sick leave accrual was June 18, 1973. The accrued sick leave up until that date is what an employee will be paid when he terminates employment. There was a water break in the downtown area this last week. It was a service line break that feed into the Sierra Sun office building on commercial row. Roy Waters asked if there was any possibility of us replacing the mainline that feeds commercial row now while it is being torn up for the curb and road reconstruction. Ken Krajewski told the board he and Dan Cook had discussed replacing this line and had come to the conclusion that the merchants had the option to connect to the alley line which is an eight-inch line. The fire protection for the main street comes from the back alley line. Ken also pointed out that merchants downtown also wanted the County to construct a new Ndewalk for the shoppers. If this is done , the frontage would again town up and in which case , we would be able to put a new waterline in then. After long discussion, it was decided to have an employee of the district look into the possibility of replacing the main water- line that feeds the Downtown Truckee area. We have had a request for power in the Prosser Lakeview Estates subdivision, Unit 5. Mr. James Tripp is constructing a home and would like power within a month. Mr. Paulus wrote Mr. Tripp and told him that power could not be extended to his lot because the rear lot lines were not cleared and a power extension would be impossible ,.... under these conditions . Mr. Dennis Cheney, the present developer of the two units , wrote and asked that power be extended to Mr. Tripp under any circumstances . He did not object to the power being exten- ded on the lot frontages . He also stated that when the units were developed, the manager of the district informed the contractor that the power line would not be on the rear of the lot . Under this dir- ection, the contractor did not clear the lots . Mr. Cheney felt we should clear the back of the lots for the power lines . Mr. Paulus spoke to him and told him the district was not interested in clear- ing the rear of the lots for the power lines . Mr. Cheney did not want to take the task on either. He said there was no agreement with Truckee-Tahoe Lake Estates that said the rear of the lots would have to be cleared for power lines when the property was purchased from them. Mrs . Pat Sutton asked if we had an agreement with Truckee- Tahoe Lake Estates stating the power lines were to be placed on the rear of the lots . She was informed that the agreement with Truckee- Tahoe Lake Estates was for units 1 , 2 , and 3 , and did not cover 4 and S . We sent requests to the two other insurance agencies in Truckee for their cost to insure our tanks and substations from vandalism, fire, and extended coverage. State Farm Insurance did not respond to the request. Stice & Wells Insurance quoted a price of $1,401 . Tahoe Truckee Agency' s original cost for the premium per year was $1,523. Tom Paulus wanted to research further to be sure both agencies are quoting prices for the same thing. Duane Anderson wanted to add the pumps to this policy. He asked the manager to investiage to see what additional costs would be involved to do this . Mr. Paulus reported that the Springfield Utility Company in Spring- field, Illinois , called for bids on power poles and received no response whatsoever. He wanted to explain why we are receiving such high bills for power poles. We are acquiring as many poles as we can in case there is a shortage in our area. Tom Paulus Iresented the KIPLINGER LETTER which had an artical on a developer in the Marin County that is using low flush toilets , low pressure showers and insallating all of the water pipes. This supposedly will conserve up to 50% of the water usage . Manager felt we are definitely on the verge of a major growth in Page 161