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HomeMy WebLinkAbout1973-11-20 Min - Board NOVEMBER 20 , 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, absent ; D. Anderson, present; N. Stone, present ; R . Anderson, present; R. Waters , present . GUESTS PRESENT: Pat Sutton, John Craig, Marigrey Fish. EMPLOYEES PRESENT: Paulus, Kinzie, Krajewski MINUTES OF NOVEMBER b AND NOVEMBER 12 , 1973 The president asked if there were any additions , corrections , or omissions to the minutes of the regular meeting of November b and the special meeting of November 12 , 1973. It was moved by Director R. Anderson and seconded by Director N. Stone that the minutes for both meetings be approved as written. All aye; motion carried. BILLS FOR BOARD' S APPROVAL Mr. Paulus explained that of the overtime incurred this pay period, $600 has been billed to Dart Resorts for the installation of poles in Tahoe Donner. It was moved by Director Stone and seconded by Director D. Anderson that the bills be paid. All aye ; motion carried. LONG-RANGE FINANCIAL FORECAST Mr. Paulus reported to the Board that he had met with Directors Duane Anderson and Rex Anderson regarding the financial study. They decided to exclude two of the topics previously discussed. They are the purchasing of the Donner Lake Utility Company and the line extension policy. Item 5 , alternate power sources , will be examined and determined by our attorney, Martin McDonough, and Hal Heidrick of Wilsey and Ham. A letter from Mr. Frank Beardsley was presented which asked the Board not to take on the financial study. He did not feel that any outside firm could come up with better projections than P.U.D. staff. A copy of Mr. Beardsley' s letter is hereto attached as part of the minutes . Another consultant has been contacted regarding the financial study. His name is J. B. Gilbert of Gilbert and Associates . He has presently been engaged by the Tahoe City P.U.D. for a financial study of their district and is familiar with this area. Rex Anderson wanted to hear from Mr. Gilbert. It was decided that management would contact Mx. Gilbert so that he may present a proposal to the Board. DOWNTOWN CHRISTMAS LIGHTING In the past, we have installed the Christmas lighting downtown on the large tree. The lights have been connected to our street lights . Due to the present energy crisis , Mr. Paulus did not feel that this should be done as it has been in the past . The Downtown Truckee Merchants Association has approached Mr. Paulus to have these dec- orations installed. The Nevada Energy Resources Advisory Board is recommending no exterior lighting or lighting contests . This is true for all of the Sierra Pacific customers in Nevada. Mr. Paulus felt we should follow these recommendations. Directors Stone and D. Anderson did not feel we should deprive the residents of Truckee the pleasure of the lighting. This is an annual occurance and would take away from the spirit of Christmas . They proposed installing the lights for the big tree only but running them for four to five hours per day for a shorter amount of days . In the past , the lighting was on a 24 hour basis for approximately three weeks . It was moved by Director Stone that we continue with the page 184 Christmas lighting . . . continued Page Two November 20 , 1973 lighting on a scaled down basis . The lights would come on from dusk to 10 : 00 p.m. starting December 21 to December 31 at midnight. Mr. Stone ' s motion was seconded by Director D. Anderson. ROLL CALL: H. Loehr, absent ; D. Anderson, aye ; N. Stone, aye; R. Anderson, aye ; R. Waters , aye. LAND APPRAISALS We have received the formal appraisals from Noble Murray on the P.U.D. �--. surplus land. The total amount Mr. Murray appraised the land for is $554, 000 . When the parcels are sold, it will be less outstanding sewer assessments . Director D. Anderson requested that the Board receive copies of each appraisal report. Rather than go to the expense of copying each page of the report , it was decided to send the directors only copies giving the amount of the appraisal and the reasoning behind that appraisal price. BACKHOE LEASE/PURCHASE For two years , we have leased a second backhoe in the summer at $700 per month. In 1972 , we purchased a backhoe for $14, 920 which has an enclosed cab and a digmore extension. We have now been asked by Oroville Truck and Tractor if we would like to purchase the leased backhoe. They propose to give us 95 percent of all lease payments towards the purchase price . The price they are asking is $13,131. Oroville Truck & Tractor proposed leasing the same backhoe to us next year for $700 per month. After that summer, we would buy the backhoe for the balance owing. To do this , we have to sign an agreement stating we will lease the backhoe next year. Roy Waters requested that Mr. Paulus investigate the agreement with Oroville Truck & Tractor to see if it would be possible to term- inate the agreement should there be an economical disaster and we would no longer wish to lease or purchase the backhoe . Director D. Anderson moved that we lease the backhoe next summer . The motion was seconded by Director R. Anderson. This lease is subject to approval by the Board. ROLL CALL: H. Loehr, absent ; D. Anderson, aye ; N. Stone, aye ; R. Anderson, aye ; R. Waters , aye. WEST RIVER WATERLINE There have been several additions on West River Street. Cal Gas has installed a 30 , 000 gallon_ propane tank, Standard Oil intends to construct tanks totaling 72, 000 gallons for gasoline which has been approved by the Planning Department, and there are several other commercial installations presently constructed. Reuben Maki from the Fire Protection District has contacted Mr. Paulus several times regarding the non-existing fire protection. He would like the P.U.D. to install a ten-inch line for this protection. Our estimates for the cost of this installation are $120 , 000 . In order to have this line built, the P.U.D. would have to assess the property owners deriving benefit from the waterline . Most of the existing property owners have dug wells for their water needs . Mr. Paulus thought that many of these people would rather go to the expense of digging a well than have their property assessed for the waterline. This , however , does not take care of the fire protection. Duane Anderson asked Mr. Paulus to inquire with Dan Cook regarding procedures we would take on the assessment of this land. He also felt we should take on the expense of any preliminary studies . Mr. Paulus stated he would look into what steps have to be initiated for the line installation and assessment. Page 185 MANAGER' S REPORT Page Three November 20 , 1973 The contract has been signed and completed between Dart Resorts and Sage Brothers Drilling for the construction of the Northside Well. We will have to run single phase power to the site as Mr. Sage is bringing a mobile home to the site . Mr. Paulus read a letter that he proposes to send to the Department of Real Estate in Sacramento regarding land sales at Tahoe Donner. It states that we have completed our supplemental water agreement with Dart Resorts and they have been assured adequate water for the subdivision. Both Martin McDonough and Dan Cook have agreed to the contents of the letter. The letter further states that Dart will construct enough wells to provide a minimum of 4 , 000 gpm with Donner Creek the last resort. The Board agreed to the contents of the letter and that it should be sent to the Department of Real Estate . Sierra Pacific is in Washington asking the Federal Power Commission for an 14. 8 percent increase. At this date, two FPC witnesses testified that according to their calculations , the rate of return was near 11 percent . Martin plans to- be in Washington January 15 for a prehearing conference . It is estimated that this years power billings will be near $500, 000 . If we can save only one percent, it is well worth the incurred expense. Regarding the clause in the Sierra Pacific contract that states there shall be no rate increases without one years notice and each increase will run in sequences of five years thereafter, Martin McDonough knew this and used it in last year' s increase ; the FPC did not accept this as legal grounds to fight the case . We are updating our policies on both water and electric. The policies will cover subjects from personnel to warehouse sales . Upon completion of the revised policies , they will be given to each board member for review and approval. The Donner Memorial lites, which were requested for installation by the Tinker Bells , are not going to be put in this year. The conduit was going to be put underground and the trench was not dug prior to the snow fall. Therefore , we will wait until spring and possibly, if the energy crisis is over, will be installed then. We had a 22 hour power outage on the Brockway Shortcut . The sub- divisionsin that area, Village Green Mobile Home Park, gulf course, airport, and downtown area were effected. The oral rebuttal on the Beavers ' case was Monday, November 12 in Nevada City. We won't know the results of this hearing for 30 days . CORRESPONDENCE Manager presented an article which suggested using daylight savings time as a means to conserve energy. Director D. Anderson suggested this several months ago. We have written to the attorney for the City of Riverside who is defending a case sued by a union because the City was not putting their construction work out to bid over $3 , 500. The attorney has written back and merely said he would forward more information we desired upon request of our attorney. Mr. Paulus read a letter from Tom Cosans which expressed his appre- ciation for the prompt attention of our line crew on a power outage in Tahoe Donner. The outage was resolved within 20 minutes . A letter from Stice & Wells insurance was presented and read. They wished to bid on our entire insurance program when it comes up for renewal in February 1974. Mr. Robert Ruffing wrote a letter to the Board of Directors suggest- ing a possible solution to the energy problem. He thought we should reduce our $5. 00 electric minimum. Many residents have installed additional lights and constant burning lights thinking they might as well use the monthly fee since the residence were closed the majority of the winter months . By lowering the minimum, he thought the part- time residents would be cooperative by turning off the unneeded lights . Page 186 Correspondence . . . continued Page Four November 20, 1973 Duane Anderson asked that the records show that the appointment of Tom Paulus to manager was based on a six-month probation period. The appointment was not political as the local newspaper had indi- cated. The board, in making its decision, had no knowledge of the election which had taken place that day. The results of that election were not made public until the next day. The other board members agreed with Mr. Anderson' s statement. Since it was Mr. Stone ' s last meeting with the Board of Directors , he thanked his supporters and was sorry he had not done better in the election. For his non-supporters , he was glad for the oppurtun- ity to again serve on the local ration board. Mr. Waters stated it was a pleasure having him on the board. Pat Sutton requested that the District ' s legal counsel be present at the first meeting in December for the benefit of the board members . President Waters stated he would be contacted, and unless he has prior commitments , he will be present. There being no further business to come before the board, it was moved by Director D. Anderson and seconded by Director Stone that the meeting be adjourned. All aye ; motion carried. The regular meeting was adjourned by the president, Roy Waters , at 9: 05 P.M. BY: ROY AT S. PRESIDENT OF THE BOARD MERRJLYN KI IE, RECORD. G SECRETARY l� Page 187