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
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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.
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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 .
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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
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