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HomeMy WebLinkAbout1973-12-18 Min - Board DECEMBER 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: J. Craig, present ; D. Anderson, present ; P. Sutton, absent-arrived 9 : 30 p.m. ; R. Anderson, present ; R. Waters , present. GUESTS PRESENT: Nelson Stone, Fred Damavandi , Jack Pearce , Marigrey �._. Fish, Fenton Wilson, Jerry Herrmann. EMPLOYEES PRESENT: Paulus , Kinzie, Silva. MINUTES OF DECEMBER 4, 1973 The president asked if there were any adchtions , corrections , or omis- sions to the minutes of December 4, 1973. Director Craig asked that on page one, under election of the president and vice-president, Director R. Anderson' s motion was seconded by Director D. Anderson rather than R. Anderson. Under Gilbert Financial Consultants , Director Craig asked thatthe directors receive a copy of the proposal referred to. On page two, last sentence of the first paragraph, Director Craig asked the sentence - read a substantial rate of return. . . " rather than ". . . substantial net of return. . . ' On page three , under Beavers ' Case, Director Craig asked that the wording read, " . . . the decision on the trial to the Truckee-Donner Public Utility District. " Under Manager' s report , on page six, the section referring to monthly depreciation for the water department, the percent signs were omitted in error. On the same page, Director Craig asked that an "s" be added to the word "employee" in the sentence, "Director Craig thought that it is very important to the em loyee that management get involved in the program. " On page five, "per minute" will be added to the second-to-the-last paragraph, last sentence . With these �-- corrections and additions , it was moved by Director R. Anderson and seconded by Director D. Anderson that the minutes be approved. All aye; motion carried. BILLS FOR BOARD' S APPROVAL After reviewing the bills for approval, it was moved by Director J. Craig and seconded by R. Anderson that the bills be paid. All aye ; motion carried. PAUL CHAMBERLAIN CORRESPONDENCE Roy Waters read a letter from Paul Chamberlain regarding the Lakeworld electric contract. He thought the $35 per lot figure was computed by George Cattan and Fred Damavandi which was intended to cover costs for the construction of the distribution lines . According to Mr. Chamber- lain, the contract can be rescinded on the grounds of mistake , duress , menance, fraud, or undue influence, failure of consideration, and so on. He thought that we should go through with what ever negotiations can be made without any legal action. Another possibility for relief from the financial burden of the contract would be to charge a standby electrical charge in subdivisions where there are several vacant , un- improved lots . This would have to be done by special legislature for the district. Another letter answering Director Sutton' s Question was read regarding the November 16 letter sent to the Department of Real Estate stating the Northside well was to be constructed with a capacity of 500 gallons per minute to serve the Tahoe Donner subdivision among other areas . Attorney Chamberlain thought that since the supple- mental agreement with Dart Resorts was provided to the Department of Real Estate along with the letter of November 16, the Department is fully knowledgeable of the provisions and the contents of the agree- ment and the water status for that area. Mr. Fred Damavandi spoke on behalf of Dart Resorts on the electric contract. When the subdivision was started, the line extension policy for the District provided that the District would pay for the exten- sion and the property owner would pay the costs in his monthly elec- tric billings . The $35 per lot figure was intended as a donation to help cover costs for the extension that the District was unable to pay for. The contract states specifically "financial aid" and 'bon- Page 200 Paul Chamberlain. . . continued Page Two December 18 , 1973 tribution" for the construction of the line according to Mr. Dama- vandi. Another point Mr. Damavandi mentioned is that the District does not have any refund policy. Under the previous extension policy, Dart would not have paid anything. Since the District could not afford to construct the three-phase distribution line , Dart agreed to contribute so much a lot towards the construction of the line with no refund as power is used and revenue is generated. Mr. Damavandi also pointed out that Dart helped to get the Telephone --- Company install 40 percent of the poles in the subdivision which cut down considerably on installation costs. In the last two years , Dart has paid $100, 000 over the contract for the construction of power. Mr. Damavandi said the Corporation had intended to discuss the re- negotiation of the electric contract when the workload for both the District and Dart had slacked off. . . if, in fact, the contract needed to be renegotiated. Nelson Stone spoke as a director on the Board when the contract was made. He said the engineer made an estimate for the line extension less the advance from Lakeworld to start the construction of power lines of $50 , 000 divided by 6, 000 lots which is $35* At the time SEA the contract was entered into, Dart offered to construct the line A^�ENDMEN1 themselves as an alternate. Several of our employees at that time would have been unemployed or on a reduced working schedule if this alternative had been taken. This was one of the reasons why Dart was not allowed to install the line . Mr. Paulus was authorized by a Minute Order to look into a dollar amount to resolve the financial burden of the Lakeworld electric contract. Jack Pearce said he could get a cost from Harker & Harker for power line installation on a mile-per-mile basis . Mr. Paulus was authorized to contact Mr. Martin McDonough as attorney for the district to look into the alternatives for the District to the elec- tric contract. Manager and attorney are to report back to the Board by the next regular meeting in January. Mr. Chamberlain gave his opinion on Mr. Paulus ' appointment to Manager in an executive session. He cited the Attorney General ' s opinion that the words "to consider" included the right to take action in an executive session. Mr. Chamberlain, therefore , con- cluded that the Board does have the right to take action in exec- utive sessions . Mr. Chamberlain recommended that the minutes of the meetings having an executive session show the particular action taken in executive session so that there would be a record of the decision. Mr. Chamberlain sent the District a copy of the letter he sent to Martin McDonough asking Mr. McDonough for specific water rights to Donner Lake and Donner Creek. There has been no response by Attorney McDonough as yet. Mr. Chamberlain also sent the District copies of letters between the office of the Public Utilities Commission and Mr. Chamberlain. In Mr. Chamberlain' s letter to the PUC , he asked whether or not they have personnel available who could be recommended to the District for an examination by experts and an indication as to whether or not it could be conducted for the statutory amount , or not to exceed $2 , 500 . The PUC answered him by saying they did not have the person- nel available to do this expert examination at this time. Mr . Cham- berlain again wrote the PUC asking when they felt they might have the personnel available to comply with Section 16605 of the Public Utilities Code . We have not yet received an answer on Mr. Chamberlain' s most recent letter. Mr. Chamberlain told Mr. Paulus over the telephone that he was unable to complete his research on the sick leave and vacation received by George Cattan nor the Prosser Lakeview Estates contract regarding the clearing of rear lot lines for power installation. He also did not complete analysis on the bid awards to Lakeworld and Elden Tonini . Director Craig asked if the minutes for each meeting could be posted at the Post Office after they have been approved by the Board. Mr. Paulus said this could be done. Page 201 POWER REDUCTION MAILER Page Three December 18 , 1973 Mr. Paulus presented a list of suggestions for the consumer to reduce power consumption. The directors changed a couple of the items listed and added a few more suggestions to conserve power. Mr. Paulus said he would have these printed and mailed to the customers as soon as possible. The directors were agreeable with this . Tom Paulus showed the directors an advertisement for signs advocating the use of less electricity. These are set in metal frames and can be installed on vehicles . After much discussion, it was moved by Director Craig and seconded by Director R. Anderson that we purchase the signs and put the advertisement on the trucks and one in the post office . ROLL CALL: J. Craig, aye; D. Anderson, aye; P. Sutton, absent ; R. An rson, aye; R. Waters , no. So moved. WEST RIVER STREET WATERLINE Mr. Paulus presented a list showing the assessments for each of the property owners in the West River Street area which was prepared by Dan Cook. We intend to mail the petition to all lot owners and ask that they return it within 30 days . The petition will include the approximate cost of their assessment. The hearings on the assess- ments are on the supervisors level rather than the District level . We are still not sure if our assessments for W. River Street will be included in the Sanitary District' s assessments . Dan Cook estimated the cost of the waterline installation at $171 , 000 , give or take ten percent . The Board asked that Tom Paulus and Dan Cook meet with Reuben Maki of the Fire District for his approval on the fire protection in that area under the new assessment proposal. LONG-RANGE FINANCIAL FORECAST There is a $20 maximum assessment for water standby to unimproved lots . Tres is something the Manager would like to investigate further and should be tied in with the financial forecast. Attorney Chamber- lain thought this could be handled by an ordinance only. JONES-RICH vs TDPUD We have received a damage claim from Adele Jones and Arthur Rich in the amount of $215, 000 total . This is in conjunction with the action make in July granting the County of Nevada an easement through P.U.D. property to a new mobile home development . The directors wanted to know if this claim would be handled by our insurance company. A copy of the claim will be sent to them. The board asked Mr. Paulus to find out from Paul Chamberlain if the three directors named in the suite vote on the matter or if all five of the directors vote . Paul was also asked to find out if Duane Anderson voted on the case due to his relationship with the mobile home park. The claim must be answered within 45 days upon receipt; however, a decision will be made January 2 after information is received from Paul Chamberlain. MANAGER' S REPORT •-- Mr. Paulus reviewed the figures on the proposed approximate 15% increase from Sierra Pacific that will be effective December 31 , 1973. We are presently making a 22 percent difference between revenue and operating expenses. This was 23 percent in 1971 and anywhere from 13 to 16 percent in previous years . We may be able to absorb the entire 15 percent increase from Sierra Pacific. Part of the reason $6f we are showing a higher return now is that we are operating on a skeleton staff If we absorb the increase, we will be within 7 or ��D s e, t n on.*141 8 percent of the Sierra Pacific rates around us which they are present- ly seeking an increase for. The auditors , Alexander Grant & Company, will be sending a letter very soon stating their thoughts on Mr. Paulus ' change on the rate of depreciation in the water department . Mr. Paulus hoped it would be here by tonights meeting. Director Sutton asked that one of the auditors be present at our next meeting in January to represent their Page 202 Manager' s Report . . . continued Page Four December 18, 1973 firm so that she*may ask questions regarding the change of rate on the depreciation. She did not want the depreciation rate changed p p g p for the entire year of 1973. But rather start the change in 1974 m B i i for h ire � �r dust for the month of December. y changing t o the entire year, Director Sutton thought it would reflect a false profit margin for the year. After much discussion, it was decided to wait until after we receive the letter from our auditors and see if the board still has questions to ask them. The board also asked for Dan Cook's recommendations on the life of our water assets . Director Sutton asked that a resolution be made up requesting the Public Utilities Commission, under section 16606 thru 16614 , for the certification of expert examiners to do the biennial study of the district at a cost of $2 , 500 . She was not satisfied with the correspondence received from Mr. Chamberlain or the PUC, stat- ing the PUC did not have the personnel available to do the expert examination. After much discussion, Director Sutton moved that a resolution be drawn up making a formal request to the Public Utilities Commission asking for the certification of expert examiners to do the study of the district as specified in the California Code , Sections 16606 thru 16614. Her motion was seconded by Director Craig. ROLL CALL: J. Craig, aye ; D. Anderson, no ; P. Sutton, aye ; R. Anderson, no; R. Waters , no. Motion died. The directors voting 'no' thought a telephone call from Mr. Paulus would suffice and if we then re- ceived no favorable response , we could go ahead with the resolution. Director Sutton moved that we call the Public Utilities Commission and see if they can give us a list of certified experts to do an examination of the district . If we do not get a response , we will go through with the afore mentioned resolution. This motion was seconded by Director Craig. ROLL CALL: J. Craig, aye ; D. Anderson, aye ; P. Sutton, aye ; R. Anderson, aye ; R. Waters , aye . So moved. We have had an interested real estate salesman contact us regarding the surplus land the district owns . Mr. Paulus suggested anything under $10 , 000 be a cash sale. For land set with a minimum bid over $10 , 000 , a 30 percent down could be paid with financing at the see current interest rate applicable for a period of five year. The4-,#I'1' AJVr 1Prr directors did not think we should wait too long on the sale of these parcels , as the appraisals would change. The manager was asked to look into land that was owned by Richard Joseph that the district now owns . They asked that he verify this ownership. There being no further business to come before the board, it was moved by Director R. Anderson and seconded by Director D. Anderson that the meeting be adjourned. All aye; motion carried. The regular meeting was adjourned by the president , Roy Waters , at 11 : 20 p.m. BY: ROYW ERS, PRESIDENT OF THE BOARD 7X11!11`AA1 MERRILY KINZI V/./ RECORDING ETARY Page 203 January 2 , 1974 Amendments to the minutes of December 18 , 1973 : Page two, fourth paragraph, it was asked that the minutes show Director Craig asked Nelson Stone who the engineer was that made the estimate on the construction of the power lines in Tahoe Donner. Mr. Stone said it was the then manager, George Cattan. Page Three, first paragraph, under Manager ' s Report , it was asked that after the sentence, "Part of the reason we are showing a higher return now is that we are operating on a skeleton staff," be added, "according to Mr. Paulus . ►' Page four, first sentence , it was asked that the sentence read '► . . . firm so that the Board (rather than she) may ask questions . . . " In that same paragraph, the sentence starting with "But rather start. . . " , Director Sutton asked that ►'. . . or just for the month of December," be deleted as she did not recall saying this . Page four, fourth paragraph, last sentence in that paragraph, it was asked that it read "One of the directors . . . " rather than "The directors . . . ►► Page 204 STATEMENT OF GENERAL FUND Bank Balance 12-4- 73 40 ,422 . 31 Deposits 382155. 86 Approved Billings 10, 833. 50 Joe' s Truckee Auto vehicle repairs 567. 65 . Sierra Sun subscription 5 . 00 IBEW 82 . 00 Alpine Business Service (26 . 21) Post Office mailing machine 200 . 00 Bob White Excavating 89 . 50 County of Nevada 94 . 30 (111845 . 84) j PAYROLL 12-14- 73 DT OT STANDBY GROSS NET Silva 57 . 20 289. 71 71 . 50 990 . 41 796 . 61 Reynolds 26. 40 269. 46 66 . 50 894. 36 707 . 36 Paulus 750 . 00 598 . 60 Straub 187 . 05 651 . 05 505 . 55 Grow 64. 87 640. 07 537 . 47 Lopez 104. 79 636. 79 522 . 09 Krajewski 575 . 00 471 . 70 Krajewski (vacation) 575 . 00 463. 71 Sharp 404. 34 307. 45 Connell 17. 40 388 . 60 279 . 42 Craig 297 . 60 236 . 81 Kinzie 26. 56 284. 16 226. 80 Kirchner 227. 20 166. 64 (5 ,820 . 21) 83. 60 959 . 84 138. 00 7324. S8 Bank Balance 12-14- 73 602912 . 12 BILLS FOR BOARD' S APPROVAL Pej os four meals 11 . 20 Cook Associates 4,627. 48 - Tahoe Donner 41663. 28 0. B. ' s Board 12 meals - liquor deducted 101. 62 Dictaphone repair recorder 65 . 73 j George Cattan pension 258 . 75 Builder' s Service Center water dept. supplies 14. 49 Gautsche ' s Chevron tuneup, grease 68 . 94 Fred' s Arco gasoline 6. 18 Murray, Burns & Keinlen all Tahoe Donner 11288 . 13 Atlantic Richfield gas & diesel 316. 77 Wyckoff Company poles 102344. 30 Graybar Electric Co. elec. supplies 42 . 31 Oroville Truck F Tractor monthly lease 729. 75 Motorola Inc. radio for line truck 850 . 60 Martin McDonough legal fees 859 . 58 Doug Heise floor cleaner 7 . 08 Gordon Huber Company copy machine supplies 64 . 42 Vail' s Pharmacy film 10 . 48 Sierra Sun bid advertisement 11 . 38 Truckee Hdwe & REntals various small items 139 . 59 Walt' s Exxon Service gas and diesel 21 . 40 Wedco transformer 4, 116. 17 Reno Newspaper annual subscription 38. 00 Standard Oil backhoe oil 27. 09 Sunrise Laboratory water test 10 . 00 RTE transformer 12953. 00 Western Tool & Hdwe. tools 115 . 65 Utility Body repair ladder truck 118 . 60 Anixter Pruzan electric invoice 32488. 11 (29 , 742 . 69) Bank Balance after payment of above 31 , 169 . 52 Page 205