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Mr. Hobensack was requested to define availability: Electric -
whenever there is a district electric distribution line installed
within 200 feet along an easement or along a public road to the
nearest exterior boundary line of any such parcel. Water -
whenever there is a district water distribution line not less than
2 inches in diameter installed within 100 feet of the nearest
exterior boundary line of any such parcel. Mr. Cook agreed with
the definition as read.
Mr. Cook presented a map showing the area of the District, the
ONW%+ downtown area, where one and two inch lines exist, and there was
some discussion about fire flow. Director Sutton asked whether
there was justification for exempting the downtown area from the
standby ordinance. Mr. Cook didn't have a recommendation for
exemption at this time. Director Waters stated that he believed
that the ordinance should apply to all lands.
Mr. Hobensack recommended that the District charge $10.00 for
electric and $5.00 on water on all lots, not differentiating between
an acre and a parcel of less than an acre.
Mr. Cook recommended that the District charge $11.00 for electric
and $6.00 on water on all parcels, not differentiating between an
acre and a parcel, but, since the law does not allow for this,
Mr. Cook reversed his recommendation to $10.00 for a lot and $20.00
for over an acre on electric, and $5.00 for a lot and $10.00 for
over an acre on water.
Mr. Craig noted that charging the maximum ($20.00 for electric and
$10.00 for water for parcels of over an acres would mean at least
$20,000.00 a year on the 1600 parcels in the District which are
larger than an acre.- The cost of administration for a yearly
up-date would be more than by charging the same minimum for all
parcels regardless of size.
,�. Mr. Craig asked if there was any further questions or discussion.
This Ordinance will be on the Agenda for the February 4 meeting and
action will be considered at that time.
Being no further comments, the special meeting adjourned at 9:00 P.M.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
BY.
ohn raig, President AJhe Board
K. Rich, Recording Secretary
Page 64
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
POST OFFICE BOX 309
TRUCKEE, CALIFORNIA 9S734
TELEPHONE S87-3896
January 24, 1975
FOR IMMEDIATE RELEASE:
Truckee Donner Public Utility District must collect an electrical
enery surcharge starting with electricity used in January 1975. The
following is a copy of a release by the state:
California electric consumers will be paying a new tax starting
January 1, 1975, when the Energy Resources Surcharge Law becomes
effective. The new law, enacted by the 1974 Legislature, imposes
a surcharge which initially will be one-tenth of a mill per kilowatt
hour on the consumption of electrical energy in California purchased
from an electric utility. The tax will be administered by the State
Board of Equalization.
Board Chairman George R. Reilly said that at the one-tenth of a
mill rate the surcharge will add about 8 cents per month to the average
residential user's electric bill and will be collected by the utility
companies.
All moneys received will be credited to the Energy Resources
Surcharge Fund. The revenue will be used as appropriated by the
Legislature for the State Energy Resources Conservation and Development
Commission of the Resources Agency to: Carry out energy conservation
measures to improve such things as building design and insulation,
appliance efficiency, power generation and power technology; certify
the siting and design of electric power generating and related faci-
lities to help ensure that sufficient energy is available when and
where it is needed by Californians; and to research and develop
alternative sources of energy, improvements in energy generation,
transmission and sitin% fuel substitution and other topics related to
supply, demand, public safety, ecology, and conservation which are of
particular statewide importance.
By August 1 of each year the Board will establish a new rate, to
be effective September 1, that the Board estimates will produce
sufficient revenue to fund the expenditures authorized by the
Legislature for the Commision for that fiscal year. The rate may
be set from zero to two-tenths of a mill, graduated in hundredths
of a mill increments.
Page 65
?'"`- - -
113
al
'Y-
co ASSOCIATES ENGINEERING CONSULTANTS
2060 PARK AVENUE
-' � OROVILLE.CALIFORNIA eSlseS
l'
PHONE (Ole) 533-4457
CALIFORN1A P.L. NEVADA P.E, OREGON P.E.
January 28 , 1975
Board of Directors
Truckee Donner Public Utility District
P.O. Box 309
Truckee, California 95734
Dear Directors:
Based on your direction last night, I have compiled a sketchy outline
of one possible derivation of the standby charge. I have used the
values from the 1973 audit as transmitted by phone this morning. I
have also used the service count and vacant parcel count that was
contained in the E. I.R. analysis.
The specific values may vary, however, the results will be approximately
the same.
Summary of Expenditure
Power
Item Direct User Cost General District Cost
Purchased Power 505.3000 0
Power Distribution 40,800 7 ,200
Power Transmission 119 ,3850 212150
Customer Accounts 395000 0
Depreciation 0 555000
General Overhead 0 593000
Sub Total 7045650 142 ,3350
Water
Water Transmission 195550 .35450
Water Dis-tribUtiolz 15 ,300 25700
Customer Accounts 75000 0
Depreciation 0 42 ,000
General Overhead 0 19 ,000
Sub Total 41,850 675150
(_rand Total 746 ,500 209 ,500
JO£F. C=C)OK M F. [BAN J. CQ0K C:, L.
Page 66
' Board of Directors
Truckee Donner P.U.D. #
January 28, 1975
Page 2.
The power system general district cost is $142 ,350/year.
Power System Users ----------- 2 ,971
Vacant Parcels ------------------ 9 ,400 of which 8 ,000 are "served"
Equal charges between occupied and unoccupied parcels would be $12.98
per year. Note that the occupied parcels would pay his $12.98 in
the appropriate rates and charges for the energy consumed .
As currently written the average standby charge is some $11.90 and
will derive an annual income of some $95,200 per year. The amount
may be a little out of balance and therefore something that you may
want to consider.
The water system general district cost is $67 ,150/year.
Water System Users ------ 113093
Vacant parcels - -r 8 ,900 of which 7 ,500 are "served"
Equal charges between occupied and unoccupied parcels would be $7.80
per year. Note that the occupied parcels would pay his $7.80 in his
water bill.
As currently written the average standby charge is �6.00 and will
derive some $45,000 per year. The amount may be .a little out of
balance and therefore something you may want to consider.
All things considered I feel that the values of $5.00/lot and $10/parcel
over one acre for the water system is reasonable.
The power standby charge of $10/lot and $20/parcel over one acre is also
reasonable.
I would recommend a single charge of $6.00 for the water and $12 .00 for
the power be adopted for administrative reasons ..
Very truly yours ,
COOK ASSOCIATES
Darr J. Cook
Civil I; gineer
DJC/c i-p
Page 66A
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LAW OFFICES OF
JOSEPH Q. JOYNT
E .
"A eater and electric standby charge within the boundries
of Truckee-Donner Public Utilities District will no doubt
generate a lot of discussion and some opposition. However,
once the standby charge ` ncept- is fully examined and under-
k stood, I believe the nep :y_ therefor will be accented.
It is natural for all of us to on-pose any new rate-
making concept, especially if it means an added charge. But
increased charges for vital utility services , water and
electricity, are bound to come. Basic enera�T crises have
zoomed in just the last year and both the President and
Congress now say these costs must go higher yet. These basic
energy costs are directly related to generation and
transmission of electr-icitt, and water.
Standby or immediate availability charges are not a new
concept. Standby charges in one form or another have been on
the books , authorized and available to be used for several
years . Their application may be new in the Truckee area. But
in other areas such standby charges have been in use for years.
The need for a standby charge can be demonstrated by one
example. A developer comes in and ovens a subdivision with
thousands of lots and condominiums , ski hills , golf course ,
and what have you. The developer wants and insists upon water
and electric lines in and fully installed on a ready-to-go
basis to each_ and every lot. It may be, however, ten, fifteen,
or twenty years before all lots are built and become users .
Page 67A
i
LAW OFFICES OF
fJOS EPH Q. JOYNT
I
Page 2
In the meantime , the utility company must maintain the lines
and be ready on a moment' s notice to hookup a customer any-
-place within the subdivision. REMEMBER, these empty lots do
.I
not become user-customers , that is , they pav, nothing to the
1, utility district.
6'
This means the rate-paying customers , those already living
in the area, the permanent residents , are paying the casts .
f _
These costs are reflected in rat-s. It means the old line
customers are paying more than they should.
On the other hand if the utility shifts the burden to
those customers who want the immediate availability, the
old-line customers can continue to enjoy lower rates. Keep
i
f:.
this in mind., the vacant lots are indeed customers. The only
p difference is , they are customers who do not pa-\r.
Not too many years ago the Gateway area was thought of
as being far-away T
g - a� .from Truckee. Now loofa at the man. As
things now are the downtown ; e
g customers are pay�ng in their
user rates for standby services to many_ far-flund subdivisions .
A standby charge will relieve the burden of the downtown user
customers and shift it to the non-user customers.
These are my independent views. I do not intend this as
a statement by or on behalf of the District or the Board of
Directors. These and many other things are and have been
openly discussed by the Board of Directors._. an-d- me -
fhe District welcomej►all views on the su
bject. I read a
newspaper article which would seem to indicate that a standby
Page 67B
LAW OFFICES OF
JOS EPH Q. JOYNT
Page 3
charge was some neyv, ' ill-considered concert'- for mr_uckee. Quite
the contrary. It is and old idea and the Board of Directors
has discussed it Many times -er. There are many who suggest
the Truckee-Donner Public Utility District has been too slog
t
in enacti.na a standby charge.
We still do not know if the standby charge will be
enacted now, later or ever. That will be for the District to
decide through its Board of Directo{-s. "
Page 67C.