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Fi m rt a rt (D G n o a 0 tr r cn G Fi a G G 0 m a J m rt w �O O Fi a G rt P- m O m H m r t"C G m a 0 0 rt 5 F-J- cn FJ- FJ• rt, 0 � Fi I--'• m �C (D Fi F'• Fi 0 1-0m F-J m F'- cn F, 0 � 14 Fj- tv a N rt 1-0 G G �+ o G 0 0 F-i FJ.�a x a a G m cn O 0 a rt rt 0 ►,c n rt rt a a cn cn Ln o a a O a O m ::r Fl a FJ F'- Fi w a m O rt 51 "_ Fi - F-,• LQ 'o rh H a : m � a m a � r G OP rt x rt Fi m �_h a H• a Fi a In m H o ro G �' m a FJ- cn rt m a rt s H O FJ• rt rt cn ,-r rt rt rt Pi FJ • a w m m(D o rt rt m m w rt F-i G FO 0 F-I • O a 0 F,- rt Fes• F•h � 0 m Fi a F-' - H- b' �' �' m m tr 7`-' m rt m � a rt Fi FJ a C cn �' m a �C F-J m y a �'0 • ti a m rt m ::ra a 1-0 ' FJ• m • m n O H. cn Fi (D �- m m m cn rt- ::r m a Fi G FJ tr x a N• a m Fi x G a Fi a w rt FJ- �J V Fi cn F-J F✓ cn Fi Fi :3: rt rt rh Fi G "r m cn � 0 a m m F— m cn rt cn Fo a m rt F� (n m c 0 :J H FJ- rt �s FJ- O rt a x a H, Fi O rt F,• �C w m cn a pi tr (D rt' ::r (D x- rt rt � m D7 m tr Fi rt F-J m rt rt LQ F' I-' O G 0 a � m �r rt FJ 0 - tr C 0 m G 4 N- , �r " (n 1-0 (D Fi Fi rt G FJ- ::' N I'v 0) m ::r ::1 I-' Fi a F.,• Fi a h' m m F- G m Fl H a Fi m En m Fi Fi a tV Fi- (D Fi • 0 m H- • �r rt 0 m m (n LQ G F•h w N• ct LQ .0 Fi rt rt (D Fi 0 (n 5 cn G FJ cn �r m rtm Oo (n F,- FJ G 0 m m Fi 0 G+ rt P- rt F,- 0 (n �V• rt FJ m rt m cn Fi- rt a 0 m ct rt F-,- o rt ti m 0 a • Fi- m FJ- m m FJ- rt w (n O a c m k4 :� m �3' o a 0 0 rt rr 0 W G o rt . Fi O �3' rt m m O �Y Fi O m �3 Fi rt 0 a 0 0 (t � (n �'ct m a G m rt 1-0w � o rt rt G' Fi �' �Y rt m FJ- tr 5 a (n a 0 0 � m PV b rh• 0 FJ- � �'p- x F•h ti � FJ- � � tr o rt m 0 o FJ• a m rt m 0 m a a rt O o (n 0 �t rt m m m O a m G m rt a (D - 5 m cn Fi m Fi rt G 0 a cn m G o 0 rt rt G m �Y Fi- C� rh Gr G rt n G G O ::• cr, m m (n LQ . G+ N Fj- G cn • x' N• a m a �' 0 F-i G a G 0 a F,• FJ- Fi P• a rt d m m a FJ o ts' to m m rt a F� :" H- m o �j m a m a a cn m CD a0 N n cn :c FJ- G Fi a m FJ- O cn V (D '-C G • l_C m 0 a G ::1 rt ti z lC a Fl- rt G a :' H G rt G a 0 m G a tr cn 0 FO Ff- N a F-J m cn rt 0 N (n G G 0 rt N• m (n G a [n rt ::r FJ N F­ m m F-J :4 (n rt G 0 m rt N•lC rt F✓ F-J Cr LC :' y & ::r m FJ a :3' o 5 1-0 a 0 (D Fi• p) to F.• a (n m m 00 O Fi x rt a Fes• O N• �v m Fi (n G' rt m o m K 0 w � � rt tr a m F-J G G � Ffi rt rt m O a Fes• G n � L< (n � r-h Fi G a G N• rt O Fi- 0 •�' F-h a G rt G N a m U) a (n Fes• a Fi t-h Fi- G F-' rt,N• Fes• N- m m (n C I 0 Fi _h G m O 0 rt G � L � FJ- tr �' m Fi a FJ- V o (n m G' FJ- a N FJ- ::rw P a (D G N- p, rt Fi- G Fi O G m Fi G m 0 Fi a m m 0 G G FJ Fes• G FJ- �r rt G K G o - 0 rt LQ m Fi FJ-FJ-LQ 0 (D G F,• rt n z cn F-J E a s LQ G cn rt G+ :r m 0 F✓ rt m m LQ :3, rar � m m ¢' o m ¢' � � tim - m LQ . 1 ro rt d rt. Z 1-0 rt�a y n o a �O :J 1-0 �C Q, cn X :3: FJ 5 cn bd rt cn 0 its :3: tL ::s o r-n cn n t-h a r+ 0 rt �-j r rt a �3A ro p, O FJ- O P- (D K :3' I-' �' M- �l 0 :j �r O �:s �:s m rt O a K K H_ rt K K 0 a �3' a �l N a 0 �r PO FJ- K K U) tD m (D 0 ft 0 m :3A 0 :3. O a ::r F H. - a 4 K F✓ x O m a a K rt � Q, m Q, K rt rt H Qj F'- 0 �< (D Al rt cn � cD m K 0 Q, (D m A Qj F� K a 5 F-I 0 (D a a 'd cn G (D U) (D bd U) (t Fj- G rt (D Fl- G (D rt 0 (D a z 0 x :y (D �< 0 (D LQ O pi rt G 'c rt (D rr a (D rt (D rt rt a G (D m 0 G O o K ::s O F-' K n H G' a K QJ tY x �.3 G m cn n cD 4 3� Q,LQ o G G Fes• 0 K F3 LQ ft (D (D K (D U) �c x cn K t-h rt m rt Fl :j :e cn F'• rt rt 0 cn O q (D K N O U) �r 0 & K pi O a O G 0 t-i ft rt �r Fj- Q, :e cn m O m Q, rt rt G n � rt I,C :3' m N• m LTI FJ. o K m a ts' G :Y 0 w• 0 0 w3 • m cD rt m tr q 0 rt 1-1 H_ a cn a w rt � m H- O 0 c � N• rt H 0 0 0 �' a G m m m � H cn c m K 0 n m � H-LQ m K rt G G E tri zn � � m > a n N• Fj- tr rt* :rF -J- a 0 0 K 5 m -• a rt m FJ m m rt a F✓ a cn tr a rt m m O G a 7�' F-Jcn N• tzi O n a a O G �3 5 Fd En m W G a 0 bd O rh m a F-h o G G' Qj cn �r a rt �Q m cn p-• K a F-� Ul LO F, F j a G P_ m rt G 0 G rt G cn t� x F'- rt rt 0 o K rt FJ Fj- rt U) o x :�r ol< a s 0 m :3' pi m G �' Qj H_ (D a Qj rt rt M rt 0 z O a (n H- cn a a 0 PC � O tr �'' (D m c F,• JZ 11 P- F. rt rt � F_j m F-� rt 0 It t7 K " O rt rt bd �s 5 m Qj w m a m 1-3 :::rK 0 .< :j rt 0 ::1 �3'�< cn cn 0 x H- m Qj :J m O rt* �j :31 � Fj- a a m �:r M 0 G �3' m rt 0 rt Fn- rt 1-3 G LQ (D QJ m K rt m C cn rt t:l 0 :34 N' n - m x a rt m m Q, K LQ Qj G rt rt En N• m cn cn K rt m m (D K FJ m Q, � 0 r� F-h 0 � � K m cn K I••'• ¢', m 0 N- � F'- rt rt m O cn rt a W m O K K m � a UI O �' a G c-t � rt K a Q, rt m FJ v K G a s m K rt En G t3 Ql i•C iL (D 0 ::F' a z O K K Ql �o � � a LQ a m a 4 W 0 H m FJ- bd C (n t$ n 0 �g Ln ,�. rt :3 rt�< O m Fj• a o F-J m m K m cn P- cn K n O O FJ 0 (D o K (D a U) 0 0 ►c �5 ::r 0 O m O :31 ::;4 H. Fi cn pi F-J ft Q, G K G K G G 1c rt F m a G O (D rn N cn K r- o Q, M Q, a 0 Q, G G Q, tr cn : rt ft a 5 m O m FO LO a K cn rt a 1 - u) FJ- 4 m w c w m m �' ct o FJ- G cn ft F'• o m Ft, En G Qj Fj- m G a o K K h� a rt K o K G C G rt v z K a �' FJ- m a bd m Q, F-h a rt m i-3 m EI F-J K �d �d rt rt to to G O Qj a K m F✓ Q, P- ri a m �4 K x m w rt n c - tr m rt rt H FJ FJ- �' �' � tri K FJ- m a 0 (D a m �r a OP. o �- a rt m 0 0 rt F,• rn rt �- o a 7d m m m Fes• m F-i q 0 t-q Fj K n a cn rt rt N 0 G F•h rt* G 0 m m i-b 4 RL m K �c �' � 0 x �J' rt FJ- rt 0 cn rt F--, 0 rt rt t-h rt �r rf t4 • m 0 F'• Qj P- m n rt rh 6e. F,• Q, O G rt m K K �o K �' K a 1C m a m 0 m a �v rt m m �Y � � Fj. (D a � O FH m �' Fd H 0 � f-n Q, Qi x O O a rt K � G �' m rt m K rt a O N• x ct x m cn Q, K t-'• � Qj m � rt K F'- a � a F,• K rt rt m O z rt ro of m tT1 K tr Po 0 0 Fj• v Q, O a m 0 �' m F-�• :u' cn m O m m E cn Fl m a m �f U! m u, ::$ c-t K F-i H : a m �3' K 0 m F-� rt m �c R � m m � rt c SD - N rt f-h m Qj 0 a cn a s Fj- G � Fj- cn a a 0 m m 1-0 x H- FJ F-J m rt t-{ rt Q, m �' m � K Fes- K 0 0 Fj- m to FJ- (DN• • m rt a P- �-+, F'• U2 0 cn N- G 110 rt �j 0 110 Qi 0 I-h En Fj- K - cn U) K QJ O m F o rt m �3 (D c m a o rt 0 m 0 K a t-h tr"0 t-h m cn G 5 Pi Qi rt - w O (D F✓ rt F- U) rt Cr 0 m m n O Fi to F-J rt P. FJ (D c G K �Y G tT Qj U)l< H- Fi cn H rt 0 x FJ m LQ x m � F•-'• F-'• ZJ 0 0 N m 11 1-0 0 0 xV m o a n o O m 0 F-• n m m Qj (D F,• �r a 0 rt QJ o a a O rt m rt r. kQ m 0 �r 0 � a 5 rt p- O Fi.to rt �- m F✓ 0 H `• K H_ G G G o x F-j K a K m • rn O m � G �V cn 0 LQ &< cn m � m m a rt 0 m a W G m a rn 5 t-h m rt m r-h G H m Qj 0 rt - o rt H rn LQ (D U) a cn w 0 cn ::5 a Qj�O m K Fl- rt' 10 m cn �r En0 N• rt Oj m O Fes-FO 0 (D O LQ rt LQ a cn H- H• �3, rt o z P- cn FJ- a �V H- o (D �Y O K U) U) a G to m a m a rt FJ cn m :1 m :J rt rt 0 m �:' F• K ro tr rt 1-0 :Y m G rt m V �l ::F' �:s K o LQ o m � a F,- :4 a F'- d � w �c o rt W FJ- � m a a x m Qj 0 V H- a rt m H, En m m a � w rt G F-J O rt a :' C Q-- 0 m m 5 a K K rt G �f P- m rt o FJ- Q, m a P_ o Q, � Q, FJ- FO C '< G :4 rt FJ- N- a m K rt K rt (D H- Fj- G m Pi H. � �d cn � Q, � a Pi x F-h En £ rt a K rt a a H• � K FJ- (D a � LQ H. H. rt G 0 rt a tY 0 5 a 0 m a a 0 m O FJ K G FJ- m U) a p- rt rt 1 � r, � a �r K F L N• K rt Qj G O m m K K G a a cn rt 0 P- m a 0 ct (D w to m a z rt ho o K :or R G i cn 0 LQ rt rt p. cn (D �31 r, N- 0 rt K K cn a c QJ :�F' rt O a m FJ- H rt �Y G c m rt N. Fd rt M 0 A� FJ- O :C �Yo m rt 10 �' H.tQ a 1-i- (D H- � K G "' Fes• • rt rt � m a VA m � 5 G K FJ- rt H- U) m Q, H. F3 o 0 its a �' rt c � a F'- G a t r t4 rt rt � fi r- cn �C cn a Fj- N m 0 w �' a E rt m K V m LQ m � 0 m � rt m 0 0 t-h a rt rt F'- If- m m 0 0 to � m m � �' a Fj- H. F-'• m �' m t-t, rt Q, rt H O K A, tr Fj- m H- a Fi• n rt O �' tY Qj K m 0 0 0 a m F-h (D W �r K FJ- FJ c tl rt K m a G F_j 4 ro �34 0 0 0 P- cn ::r 0 KEf) rt Fj- m m G a rt m FJ- to Q, m 0 O Q, m G a a m rt m I-+ m 4 Gr En Pi K rt (D � rt 0 ::r0 Q, tr r-h Q, �' m N• G H- Fi F � i Fj- ' d Q a, ro En m o 0 c a Ifi 5 0 Ab rt K rt Q, � P_ FJ- • G a a N a O w m Qj m a Fd 0 v N• -4 m UI G m w P. a G tY a pi E3 rt rt P- t-h a �r P- o FJ el cn 0,K cn t7' G G rt Fi a K P- QJ Mo O Qj �3_ FJ m m 0 c 0 LQ F- 0 �C m to m 4 O K m 'c m G m FJ �3' m O W o G m m O (D a P- rt H- K O 0 m rt H m 0 P' K 'c rt K O a N a a Q, rt It a m K rt F'- FJ rt I-C m :C K W a �3'LQ cn Q, G G K rt F-J QJ rt rt (D �r -< 1-0 p- 0 rt 0 FJ- N• rt rt K 0 rr a K 0 U) �r 0 G a s a G F,• m N LQ LQ cn rt P- F✓ o �Y m N Qj :V4 m rt- K G G x O rt O FJ FA 0 �3' 14 �3' 0 & W• t-h �y U1 a rt FJ•4 cn N Q, rt H H c �l pqj �3 rt 0 FJ- (D �Y rt N• U) I-h cn m Q, N• a K p- 0 O cn O G 5 :31 Q, m a a ::Y :34 m rt O a � c �3' W W F• X' m �3' O A K cn rh d a a rt y rt cn m 5 01*0 rt m 10 m 0 cn rt (D t7 K G �4 G a N- m O m G F J- cn tT m N- m (n O U) H- d rt FJ• �' �' r-h m G m �' E m I-, � 5 FJ rt G Q, U1 rt G U) t-h pi rt 0 m Q, m G 0 Fl- �r rt m H- Qj 0 FJ K a rt a (D O K -v� rt V 5 a U) (D x U) a m Qj o rt cn 5 F-1- a K Fn a s tr Q, G rt K m cn a cn o K rt Q, Q, 0) :V. 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FJ• rt :C m O rt O F- m r4 rt o o Gr w rt O w rt O 'A w O rt '-C w rfi rt r°t cmn m En m � �' m N � Fi- 0 x m H' � 0 cmn m o °'' ~ m FJ- c� a a rt* rt a rt n O Fi. • w rt ro ro m a• 't N G � tr' ct . t m m rt m co m w a Page 12 Minutes 4/7/75 Special District Management, designed for Board Members, Commissioners, Supervisors, etc. , applying directly to the PUD; the cost would be $250.00 for registration. There was also an announcement from the American Public Power Association for a meeting in Boston, May 19-21. Mr. Hobensack expressed a desire to attend this conference. It would cost approximately $1,000.00. He would need an answer by the next meeting. �.... PETTY CASH Mr. Hobensack was unsure of the policy of replacing petty cash. Mr. Craig felt that it was automaticly replaced when used. DISTRICT COUNSEL There were some questions about Counsel's involvement in wage negotiations. Director Sutton noted that the Board had authorized MilarRAWasack and Mr. Joynt to examine the union contracts to clean-up the/problems before it gets to the negotiation stage. UNION COMMITTEE Director Sutton did not feel a committee was necessary. Director Anderson felt that a lot of the preliminary work could be done by two members of the Board and the Management. Director Sutton felt that the Board had to decide what its position was, then the committee could convey it. Director Waters proposed that the enitre Board handle it. It could be discussed at a special meeting, which would be set-up at the next regular meeting. POLICY ON METER TAMPERING Mr. Hobensack questioned disconnection after the second tampering. It is a misdemeanor to tamper with meter seals. Director Wilson suggested that Mr. Hobensack bring in a specific policy proposal at the next regular meeting. There was some discussion about the turn-off policy, which Director Sutton suggested might need reviewed. The procedures should be spelled out better. Mr. Hobensack and Director Sutton agreed that there should be a certified letter or something to protect the District as well as the customer. Director Anderson moved that the meeting adjourn, seconded by Director Wilson. ROLL CALL: Waters, aye; Sutton, aye; Wilson, aye; Anderson, aye; Craig, aye. The meeting of the Board of Directors adjourned at 12:25 a.m. ohn raig, Presi en of the Board K. Rich, Recording Secretary Page Twelve - April 7, 1975 Page 194 c ARTHUR YOUNG & COMPANY 555 CAPITOL MALL SACRAMENTO, CALIFORNIA 95814 L LL; I V E D March 19, 1975 MA� � � 1975 'TitUCK:E D0 4 H tER P.U.D. sy The Board of Directors Truckee-Donner Public Utility District Post Office Box 309 Truckee, California 95734 Attention: Mr. Paul Hobensack, General Manager Dear Mr. Hobensack: As a result of our meeting on March 14, 19753, the steps outlined below are recommended to evaluate the array of potential automation alternatives. Your goal to improve the present account- ing system is certainly valid, but a systematic evaluation approach is strongly recommended to avoid serious losses of time and money. Five major steps are recommended as follows : 1. DEFINE THE NEED Improvements in billing and cash receipts procedures are the most obvious need. As we discussed, the potential benefits of improvement include but are not limited to the following: Cost reductions by eliminating staff, freeing present staff for primary duties, and precluding additional staff hiring . Improved accuracy by eliminating manual computations Increased cash flow through better control of collec- tions . Improved customer service . Added capacity for future growth. Page 195 ,ARTH UR YOUNG & COMPANY The Board of Directors -2- March 19, 1975 Automated equipment could also be used for other applications including payroll and inventory. Each potential automated application should be clearly ,.., defined. The expected results and benefits should be stated so that equipment vendors can respond to your specific needs. The ability of a vendor to meet your needs should be fundamental to your evaluation. 2 . IMPROVE PRESENT PROCEDURES Any currently needed procedural improvements should be made prior to automation. Procedural improvements may alter the automation needs as well as prepare for implementation. 3. EVALUATE ALL ALTERNATIVES Equipment vendors should be requested to propose specific equipment, software and support . Proposals should include detailed equipment specifications, available support, equipment costs, software development costs, and responsibilities. All systems which meet the specified volume and operating needs of the District should be evaluated. From our preliminary discussions it appeared that a ledger card approach would support daily processing and provide needed detailed account history. Both Burroughs and NCR provide such basic ledger card machines. The NCR 299 is a relatively new entry and may be capable of improving computational accuracy, volume, capacity, and controls at low cost. Equipment costs will increase significantly if magnetic ledger cards are desired in order to: 'ARTHUR YOUNG & COMPANY The Board of Directors -3- March 19, 1975 Eliminate addressograph procedures Reduce data entry requirements Support the aging of receivables. The recently announced IBM System/32 supports even more advanced methods and should be evaluated since longer term benefits may result at no increase in cost. A detailed cost analysis should be performed for each candidate system. Rental, lease, and purchase options should be assessed along with many other cost factors. System development and conversion costs are often minimized during system evalua- tion. It will be important that all ongoing and one-time costs are clearly identified and considered in the evaluation. 4. SELECT A SYSTEM The appropriate alternative should be selected on the basis of• Demonstrated ability to satisfy needs One-time and ongoing costs versus savings and other benefits . Vendor support for equipment maintenance, software technical assistance, training, and system backup . Ability of the District to operate the system Experience of users to similar equipment . System longevity including vendor support for "older" systems. 5. DEVELOP AN IMPLEMENTATION PLAN Although some vendors will generally assist in planning, such plans are normally limited to initial installation activities. Cl5- a . ARTHUR YOUNG & COMPANY The Board of Directors -4- March 19, 1975 The District should carefully develop independent plans to assure the timely commitment to and conduct of all responsibilities. The plan should, at a minimum, encompass internal procedural improvements, application development (and documentation) physical installation, conversation, training, and acceptance t testing. In summary, a systematic evaluation approach is recommended to achieve the needed results on a timely basis. It is recommended that the District conduct a step-by-step evalution similar to that outlined above to prevent significant losses of time and money. Proper preplanning will simplify an otherwise complex and often overwhelming equipment selection and implementation process. We will plan to assist the District and its Board of Directors in the evaluation of needed improvement approaches. I currently plan to be in the Truckee area in early April and will arrange to meet with you to discuss this matter at your convenience. Please contact me if you have any questions. Very truly yours, 10 ` ARTHUR YOUNG & COMPANY By K a�. )e416'*VQ1_ Robert T. Reark jq5_3 J ARTH UR YOUNG & COMPANY 555 CAPITOL MALL SACRAM ENTO, CALIFORNIA 95814 March 28, 1975 Board of Directors Truckee-Donner Public Utility District P.O. Box 309 Truckee, California 95734 Attention: Mr. John Craig, President • f Dear Mr. Craig: Pursuant to earlier discussions we have had concerning the status of our examination of your financial statements as of Decem- ber 31, 1974, this letter is intended to report on some significant unresolved matters. Construction work orders Presently the District 's staff is analyzing the status of work orders undertaken during the year ended December 31, 1974. The primary thrust of such analysis will result in: (a) Proper allocation of costs to the various work orders (b) Closing out completed construction work orders to the appropriate property accounts I understand this project will be completed and available for ou r review during the week of March 31 . Apparently, the analysis covers all work orders started in 1974, as during the year the jobs were not closes out to the property accounts upon their completion. Page 196 ARTHUR YOUNG COMPANY March 28, 1975 rY. Board of Directors :. y 4. L. 1'r Donner Lake Electric System • arch 1 1967 "Electric System Acquisition our analysis of the M , he District and Sierra Pacif is Power Company _ Agreement" between t • has not" complied with certain sections there- disclosed the District under . We are currently pursuing and awaiting remedies to these K events of default , primarily: (a) Th e District has drafted a letter to Sierra Pacific Power' Comp any requesting a waiver of such events of ,default. ' (b) Our audit senior, Matt Gomez, has an appointment to mee t with and discuss the matter with Mr. Richard C. Campbell. An analysis of the financial impact of the events of defaul t ylt must be undertaken. Agreements with Dart Industries I have previously eviousl presented you with an analysis of monies various agreements between the District and Dart received under the v g Industri arently Industries. The analysis disclosed, among other things, that app restricted funds were transferred to the District 's general fund. It must now be determined: (a) Whether these were valid expenditures of funds pursuant to the underlying intent of the agreements; or, (b) Fund s withdrawn were for the general operating expenses ,• of the District and therefore possibly non-allowable. The various transfers of these funds from restricted accounts to the general fund were made over the course of several years. Unfortunately, the District 's accounting records and correspondence ' 1 yield information as to the specific utiliza- files do not readily Y unable to conclude as do n of these funds. Therefore, We are as yet to the propriety of such transfers. w � � U 9H I~ w O 0 O a r 00 O cq cd O O O �*+ k r4 v .al PC � � k 4J 0 � +J r, F. i Vi O M r.4 w O "}`� x k o 'C (1) U C 0 0 0 3 0 C +-� +) O k r-4 4-) cd to d • v 0 � 'C � CO � E-+ Cd M Q) O 0 cad .0 .rz a *4' s~ a) a �a +� U O 0 ul A' 0 WV 0 � IL) U � � �jw.0 0 n4 4J -H U .0 ;1 'P'+ O i-. �.1 �'1 Ow 3 w 4) 4J A ° ° aa06 U' cH U 0 Cd z 0 0 m r+ O w U �+ w O P k W 4-) �4 O i4 cd cd qH U cd I H Q TRUCKEE-DONNER PUBLIC UTILITY DISTRICT POST OFFICE BOX 309 TRUCKEE, CALIFORNIA 95734 TELEPHONE 587-3896 MEMORANDUM RE: Dart Committee Persons in Attendence: Charles Doskow John Craig Paul Hobensack Pat Sutton Don Strand This committee was formed in order to accelerate solving water and electric problems at Tahoe Donner. Mr. Doskow stated that Dan Cook had recommended three wells providing 1500 gallons per minute; however, he would be more in favor of two wells. Mr. Doskow informed the committee that it was Dart's intention to possibly utilize the airport well. Dart would make their own negotiations for actual acquisition at their own expense. He was in favor of using existing sources. One of the District's possible options, according to Mr. Doskow, would be to have rights rather than ownership. The District would have to do their own investigations. The ultimate needs for Units 1-11 at Tahoe Donner would be 6,000 lots requiring 4,000 gallons per minute. The committee discussed having both Dart and District engineers getting together to make a resource recommendation, with a tentative deadline of May 1. Mr. Doskow requested a letter from the District stating the options on West River Street, which would be an 8 inch line or 12 inch line, and Dart pay for the 4 inch difference. Truckee River or Donner Creek would not be explored at this time. The airport well seems easier at present. Mr. Doskow was in favor of discussing water and power separately; however, Mr. Craig was in disagreement, since he felt the White papers could possibly be used for leverage. Mr. Doskow did not feel this could provide much leverage since Dart was in no hurry for the last three units. Mrs. Sutton's immediate concerns were determination of a source and a decision on an improvement district for upgrading the water system. Page 197 Page 2 Dart Committee March 19, 1975 The committee set the next meeting for May 5, Monday at 9:00 a.m. in the District Conference Room. This meeting would involve the engineers' recommendation for engineering alternatives. Power (electric) would be discussed at the same meeting from 10:30 to 12:00 p.m. Also, at this time, Mr. Doskow would have a report of his meeting with the Airport District. Im e.4 e Jo Craig kr cc: Charles Doskow Don Strand Directors M. McDonough Joseph Joynt Dan Cook Page 197-1 r Alf ARTHUR YOUNG & COMPANY _q 555 CAPITOL MALL SACRAMENTO, CALIFORNIA 95814 Y: January 27, 1975 b!'q M The Board' of Directors Truckee-Donner Public Utility District Post Office Box 309 Truckee , California 95734 Members of the Board: We are pleased to submit this report on our study of the Truckee-Donner Public Utility District ' s accounting system and fi nancial information requirements. The report is presented in three parts k, This letter; briefly summarizing .the - study An attac hment; containing recommendations for imple- mentation of the accounting systems changes and certain other management/operating changes Procedures :Manual; describing the recommended account- ing and reporting procedures . The scope of our study was generally described in our 19 1974 proposal to the District and was more spe- cifically all defined in our letter of December 20 , 1974. The study cific y � results are based upon a review of your existing accounting practices; discussions with Board members , 'District management , and office personnel; and extensive reviews of various State and Federal agency requirements. �... Page 198 ARTHUR YOUNG & COMPANY Members of the Board -2- January 27, 1975 The Procedures Manual, which is submitted under separate cover, -is organized in the following four sections : Section Title I Chart of Accounts II Budgeting and Reporting III Accounts Receivable IV work Order Processing and Accounts Payable Following is a brief review of the contents .of each sect'i'on. 1 . CHART OF ACCOUNTS A revised Chart of Accounts has been developed for the District and is presented as Exhibit I in Section I of' the Proced- ures Manual. The recommended Chart of Accounts is compatible with the requirements of the Rural Electrification Administration (REA) and the Federal Power Commission (FPC) . The California Public Utilities Commission (PUC) and the Local Government Fiscal Affairs Division (LGFA) of the State Controller' s Office have indicated that conformity with the FPC requirements will also meet or exceed their accounting requirements . The account code structure of the revised Chart of Accounts is directly referenced by all current REA Bulletins and reporting forms. Since the District currently follows many of the account- ing and work order procedures prescribed by. the REA, the new Chart of Accounts should help improve the consistency and reliability of District information. Procedural recommendations specified in our flowcharts and procedures are also consistent with the suggested Chart of Accounts . ARTHUR YOUNG & COMPANY - Members of the Board -3- January 27, 1975 The District should begin using the• new Chart• of Accounts for fiscal year 1975. 2. BUDGETING AND REPORTING Following a review of -the District 's operations and an exam- ination of existing regulations, we identified both the mandatory reporting obligations of the District as well as the internal gh information needs. These requirements are summarized below. r 1. 1 - (1) Mandatory Reporting Requirements The District is required, because of their status as a public utility .district, to file periodic financial and operating reports with certain governmental organizations. Additional reporting is required as a condition of certain loans obtained by the District. We contacted and/or reviewed available information from all known regulatory agencies. We ' determined that the District is required to file periodic reports with the Federal Power Commission, the Rural Elec- trification Administration, and the California State Con- troller' s Office - Division of Local Government Fiscal Affairs. Requirements for report preparation and copies of the necessary reports are included in Section II of the Pro- cedures Manual . The District should periodically review the require- ments for reporting since its obligations may change due to its borrowing practices , introduction of new legislation, or increases in its revenues (e.g. , PUC General Order 65) . Agencies who may impose such requirements are listed below. (Each of these agencies was contacted during our review. ) ,ARTHUR YOUNG & COMPANY Members of the Board -4- January 27, 1975 w Rural Electrification Administration Western Region Office (Oregon) National Headquarters (Washington, D.C. ) California Public Utilities Commission r California State Controller' s Office - Division of Local Government Piscal Affairs California State Water Resources Control Board Nevada County Auditor' s Office T (2) Internal Information Requirements •f To effectively manage and control the' District ' s opera- tions, basic financial and operating information should be regularly reported to, and review by, ,the General Manager and the Board of Directors. Section- I I -of the Procedures Manual identifies and describes the preparation of certain key reports, including several special reporting formats . If the recommended reporting system is followed, the District will regularly report the following financial and operating information. Budget and Budget Status Balance Sheet and Income Statement Statement of Cash Position Work Order Status Operating Statistics. As a supplement to this information, the General Manager and/or Board of Directors can and should obtain, on an exception basis, additional detail or -special information E i as the need arises. • ARTHUR YOUNG & COMPANY - Members of the Board - -5- January 27, 1975 The District should take steps to implement the reports described so that a budget can be approved and the first monthly reports can be made by the first meeting in February. r 3. ACCOUNTS RECEIVABLE We reviewed the billing and accounts receivable process and recommend sever al changes in existing practices. These recom- mendations have been incorporated in Section III of the Procedures Manual. The more significant of these changes are as follows : All work orders , billable system maintenance, and other special customer charges for District work should be billed monthly. The existing practice is to bill at the completion of the work which, in some cases , can be a year or more. There appear to be no overriding constraints to prohibit monthly billing. Implementa- tion of this recommendation should significantly improve the District ' s cash flow. Improved procedures were developed for identifying billable work (through better work order classification) , for capturing all charges , and for follow-up on payments. . A simple accounts receivable aging procedure is -., described in the Procedures Manual. We also suggest that collection policies and procedures be established by the Board to improve and standardize collection activities. F The District should take steps to implement these procedures as soon as possible. 4. WORK ORDER PROCESSING AND ACCOUNTS PAYABLE In accordance with the revised Chart of Accounts and consis- tent with the previously prescribed reporting requirements, we have prepared flow charts and identified the forms necessary to strengthen the Districts existing work order accounting practices. 1 • ARTHUR YOUNG 6 COMPANY Members of the Board -6- January 27, 1975 The significant features of the procedures and forins described in Section Iv of the Procedures Manual include: Purchase of Materials Modifications address : - Strengthened accounting controls and the separation of duties a a Procedures for determining the District 's cash t : obligations for outstanding purchase orders and approved invoices 4° Improved procedures to account for and ch'&.rge construction materials More systematic bookkeeping procedures. . Labor Allocation w - Several new forms are recommended to simplify the book- keeping procedures. Overhead Allocation The procedures for allocating overhead costs to work orders are consolidated and summarized on a single form. Specific overhead costs and an acceptable allo- cation methodology is also presented. Work Orders Modifications address : Procedures consistent with REA and FPC accounting requirements w A more detailed breakdown of Blanket Work Orders to allow the computation of costs for various repetitive types of service Improved controls over the accumulation of charges for individual work orders and the ability to monitor work progress and customer billing. ARTHUR YOUNG & COMPANY Members of the Board -7- January 27, 1975 C The procedures and forms described in Section IV of the ,t Procedures Manual address the Districts major work order account- ing activities as they relate to collection of costs by work order. The allocation of construction costs to record units and primary plant accounts are described in REA Bulletin 184-2, Parts s p y p ��. III-V. These procedures should be reviewed bythe General Manager, bookkeeper, and work crew supervisor subsequent to the successful ' implementation of the recommended work order procedural modifica- tions. The overall study findings and recommendations weve discussed in a general manner with the Board of Directors and the General . Manager at the special meeting on January 9, .1975. The specific information in this letter and the attachment should now be ' - n Similarly, the reviewed in detail , prior to implementation. y, Procedures Manual and the REA bulletins that are referenced should be thoroughly reviewed by the District staff and used as training and procedural guides. We also intend to review this information with the District ' s bookkeeper and other affected office personnel before the end of January. } We wish to acknowledge the cooperation and assistance we received from everyone involved in the study. We have 4ppreciated the opportunity to provide this consulting assistance to Truckee- Donner Public Utility District. Very truly yours, axLo ,i r,. a - TRUCKEE-DONNER PUBLIC UTILITY DISTRICT POST OFFICE BOX 309 TRUCKEE, CALIFORNIA 95734 TELEPHONE 587-3696 ri. March 24, 1975 z Mr. Richard C. Campbell Sierra Pacific Power Company P.O. Box 10100 Reno, Nevada 89510 Dear Mr. Campbell: in connection with the audit of our financial statements, our auditors, Arthur Young and Company, 555 Capitol Mall, Sacramento, California, 95814, observed that we are in default of certain sections of the March 1, 1967, "Electric System Acquisition Agreement." These events of default are,+s follows: Section 16 The net revenues of the electric system have been utilized for maintenance , and operation expenses of the system, payments of principal and interest on the purchase price but all surplus revenues have been utilized for the general expenses of the Truckee electric and water system. Section 18 To date, the District has not established the "Donner Lake Electric Revenue Fund" as required by this section. All the District's receipts and disbursements are included in the General Cash fund. Thus, although the District recognizes its pledge of the electric system net revenues, such 'revenues have not been secured in a trust account; and therefore, this agreement is secured only by future revenues. Section 20 The District has established a P & I account as required by this section, but the amount on deposit is not sufficient to satisfy the terms of this section. We request that the above-mentioned events of default be pardoned by waiv- in compliance with these sections. In conformity with Section 24 of this g agreement, this waiver must be evidenced in writing and our auditors require a copy be sent directly to them. An addressed envelope is enclosed for your reply. Sincerely, Paul Hobensack, Manager Truckee-Donner Public Utility District PH:znhk Enclosure Page 199 1 i i � ! Dart s A Division of Dart Industries Inc. t I Marko S.Dookow 4lep .one , Vice President and Gene,e; Counsel � '.3) 6 2182 t V ' 1 April 4, 1975 i Truckee-Donner Public Utility District i Post Office Aox 308 ' 4 40 Truckee, California 95734 { Attention: Paul Hobensack, Manager We refer to Dan Cook' s letter to me of March 19, 1975, concerning line replacement in the West River Street assessment district. Dart is prepared to meet the additional costs involved vers iz in the 2,390 feet of water line to 12 inches, subject in o g to our right to negotiate this cost directly with the District' s contractor. Such an arrangement would be subject to District approval, but we believe that our engineer is the proper party to negotiate this amount, which will be paid directly by Dart. If this is agreeable to the District, kindly advise us and we will contact the H. M. Byars Construction Company directly. Very truly yours, Charles S. Doskow Vice President & General Counsel CSD/j s CC: Dan Cook .s i P.O. Box 3157 - Terminal Annex, Los Angeles. ;a.90o51 =I Executive Offices • 8480 Beverly Boulevard, '._os Angeles,California 90048 ,. Page 200 WEST RIVER STREET BOND ASSESSMENT DISTRICT STATUS REPORT APRIL 7, 1975 Restricted Funds Balance - March 4, 1975 $93,191.47 Interest Revenue 395.56 Monies held in General Fund to pay Carlisle Graphics bill when approved (Balance of first printing) (41.95) Addition to general fund to pay balance of above when approved (Second Printing) (225.78) New amount in restricted funds - March 26, 1975 $93,319.30 Monies held temporarily in general fund 267.73 Balance of West River Street Assessment District Funds $93,587.03 Bills for Board Approval: Carlisle Graphics - Balance of first printing 41.95 Carlisle Graphics - Second printing 225.78 Sturgis, Den-bulk - Preparation of Auditors Record 40.00 Total Accounts Payable $307.73 Approved Payments to Date: Cook Associates $4,812.56 Carlisle Graphics 800.00 Sturgis, Den Dulk, Douglas 3,250.83 Total Funds Disbursed to date $8,863.39 e--r Page 201 TRUCKEE DONNER PUD BALANCE OF ACCOUNTS PAYABLE AFTER PAYMENTS OF APRIL 71 1975 CURRENT INV. PREY. NO STATEMENT TOTAL FIRM'S NAME BAL. JANUARY FEBRUARY MARCH REC'D YET DUE ACE HARDWARE 30.21 40.56 70.77 Addressograph-Multigraph 55.96 55.96 Alexander Grant 60.00 60.00 Allied Automotive 51.64 51.64 Alpha Hardware 5.41 5.41 Alpine Business Service 77.75 77.75 Anixter-Pruzan 63.05 4.27 67.32 Armanko 35.35 141.95 177.30 Arthur Young 2400.00 2400.00 Atlantic Richfield 165.04 165.04 Brown-Milberg, Inc. 337.85 337.85 Brunning Division 54.36 54.36 Cal-Western Life 614.80 614.80 California Special Districts 50.00 50.00 Clarke Stationers 426.15 426.15 Consolidated Electric Dist. 360.71 360.71 *Cook Associates 3764.79 4764.79 Delta Lines 8.85 8.85 Dodge Bldg. Costs 20.51 20.51 Duna Systems, Inc. 59.34 59.34 Electronic Calulator Co. 415.10 415.10 Graybar 320.65 320.65 Gordon Huber 454.98 174.99 629.97 Hydro-Search 5328.08 5328.08 IBM Business Machines 22.79 22.79 Maydwell & Hartzell 185.31 110.14 295.45 *Martin McDonough 768.64 883.73 1652.37 Minnesco Division 80.83 80.83 Nevada Co. Planning Dept. 6.00 6.00 �d ..continued.. N O N Accounts Payable Continued..... Page 2 CURRENT INV. NO STATEMENT TOTAL FIRM'S NAME PREV.BAL. JANUARY FEBRUARY MARCH REC'D YET DUE Nevada Safety Supply 14.75 14.75 Nevada Tank & Casing 25.88 25.88 O'Hair & Co. 42.03 42.03 Osburn's Garage 336.40 336.40 Pacific Telephone 445.47 445.47 *Sierra Pacific Power Co. 115639.57 9213.00 124,852.57 Sierra Sun Bonanza 109.25 109.25 Specialty Oxygen 39.40 39.40 Sun Printing 9.06 9.06 Sunrise Clinical 11.00 11.00 T & T Engineering 14.00 14.00 Taylor's Tires 85.60 85.60 Tom's TV System 19.50 19.50 Truckee Auto Parts 18.24 12.93 31.17 Truckee Tahoe Lumber Co. 54.27 54.27 Truckee Donner Disposal 22.50 22.50 *Truckee Donner Glass 80.64 80.64 Utilities Telecommunications Council 30.00 30.00 *Wedco 113.13 345.33 458.46 Western Hardware 62.28 62.28 Western Nevada Supply Co. 7.69 7.69 Zellerbach Paper Co. 34.66 34.66 1300 693.07 12,688.34 984.96 144,366.37 *COMMENTS Cook Associates 3764.79 1192.97 Billed to Dart Martin McDonough 768.64 526.05 Billed to Dart 883.73 737.65 Billed to Dart Sierra Pacific Power Co. 9213.00 Due 3/1/75, Later charge is 6% per year Approximately $46.00 per month Truckee Donner Glass 80.64 Claim to be filed with insurance company ,.b Wedco 345.33 Claim to be filed with insurance company for $208.50 rn N O N 1 M O N N t]4 cC3 a N lD O 00 r M 00 Ln O1 d' r-i O M N O r N d' O r M l0 M M (' Ln 4 l0 O r-I Ol 00 Ol M N N Ln d' r M Ln O Ln N N r-f r-I ON O O d' l0 Ln M r 00 Ln r-I N lD N O r-I W Ln O r-I r-i d' r O d' N O Ln ct' Ln r O r-� d' r O Ln d' M O 00 • 00 O d' 00 00 00 M O r-I l0 c'M r d' O O d' N o r-I O r-1 r4 OD . . . . . . . . . . . . . . . . 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Q cd -r1 �4 (n h U) U) -r1 rO U 1~ U 0 r � � 9 A .� lx r-I a) > U a) Q -n ro 3 U Q ,.Q S4 04 N a) 41 4 x (d 4 (d x r1 1 • .� 3 4-) Q 0 4) - - f ro 0 � -r-I H O 01 U) Q U �H M ,.Q r-1 ro Q4 >4 ro � O � Z U � ro 0 In U) a) R,•r1 � � r1 O r-I r1 m O O H ro ro N a) �' �4 5 pq H A 1r-i� w �� � IQ PQ P4Mx n01-°aaMCO0 � UzMU � Ix x w° 4 c4 444pgmUU � UUawIxhhW Mz j t�_ Statement of General Fund Page 2 Bills for Board Approval (Con't) N. Tahoe Transit Mix cement for gas tank $176.57 011ie's Texaco Gas charges 26.15 Osburn's Garage Service on E4 & E18 80.91 Osburn's Super Service Diesel Fuel 12.50 Pacific Telephone 2/7/75 Billing 302.12 Pitney Bowes Rental - Postage Machine 36.57 Sangamo Cyclometer 34.47 Sierra Sun Bonanza Advertising charges 59.00 S. Pacific Trans.Co. Rental for water crossing 28.50 Standard Oil Oil 15.45 Sunrise Clinical Mo. Water analysis 2/75 11.00 Taylor's Tires Tire repair 5.50 Teichert Aggregates Sand 60.20 Tingling & Powell Gloves 30.26 Truckee Donner Disp. 2/75 monthly charge 22.50 U.S. Leasing Office Equiprtent Rental 25.26 Geo. H. Wahn Co. Transformers 6 82 6.00 Water & Sewage Works 3 year Subscription 20.00 *Wedco Joslyn Pins, Wall Brackets Transformer & Misc. 793.23 Western Auto Brake Fluid 3.76 *Western Hardware See Comments 465.68 *Yates Body Shop finance charge 1.50 $ 22,696.20 Bank Balance after payment of above 5,249.89 *COMMENTS Book Distribution Center - $5.82, Accounting book ordered by T. Paulus (finally located) . All future books cancelled. ro�" Cal-Western Life - $509.13, Premium owing from May, 1974. Their record and ours show premium was never paid. $590.21 Premium for 3/1/75 thru 3/31/75 Cook Associates - $1,133.60 Billed to Dart Martin McDonough - $1,114.69 Billed to Dart Wedco - $398.56, Invoices totaling $644.02, less over payments made in 1973 of $245.46. Western Hardware - $465.68, Insurance claim in payment of equipment stolen in robbery. 4/7/75 MC/kr Page 203-1