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HomeMy WebLinkAbout1975-06-17 Min - Board JUNE 179 1975 The regular meeting of the Board of Directors of the Truckee-Donner Public Utility District was called to order by the Chairman at 7:30 p.m. ROLL CALL: Waters, present; Sutton, absent; Anderson, present; Wilson, present; Craig, present. EMPLOYEES PRESENT: Hobensack, Kinzie, Drace OTHERS PRESENT: Marigrey Fish, Martin Griffith (Sierra Sun Reporter), Don Strand, Joseph Q. Joynt, Eugene Churchill (R. W. Beck & Assoc. ) MINUTES OF MAY 12 AND MAY 279 1975 It was moved by Director Anderson and seconded by Director Waters that the Board approve the minutes of May 12 as written. ROLL CALL: Waters, aye; Sutton, absent; Anderson, aye; Wilson, aye; Craig, aye. So moved. Since the minutes of May 27 were done verbatim, there were no corrections, additions, or omissions. It was moved by Director Wilson and seconded by Director Anderson that these minutes be approved. ROLL CALL: Waters, aye; Sutton, absent; Anderson, aye; Wilson, aye; Craig, aye. So moved. BILLS FOR BOARD'S APPROVAL A list of bills was presented for Board approval . A few of the bills were questioned by the Board members. Mr. Hobensack noted that the Hydro-Search bill pays the ground water study costs in full . Mr. Craig questioned the overtime for the Board's Recording Secretary, Merrilyn Kinzie. Mr. Hobensack said the overtime is necessary to do the minutes and pro- vide the Board with the information and paperwork they are now getting. In response to Director Anderson's question about the 3M Copy Machine, Mr. Hobensack .--- said the District could own it for approximately $270 and wondered if an organization or person in the area had a need for a machine of this nature. The Board agreed to leave the disposal of the 3M Copier up to the discretion of the manager. It was moved by Director Waters and seconded by Director Wilson that the bills be paid. ROLL CALL: Waters, aye; Sutton, absent; Anderson, aye; Wilson, aye; Craig, aye. So moved. RATE STUDY Mr. Eugene Churchill presented the Board with a rate study proposal from R. W. Beck and Associates. The Board briefly reviewed and questioned Mr. Churchill about the rate study. This would include a study of financial requirements, cost of ser- vice study (with no application to the District's water service because the water is not metered; however, it would include a flat rate analysis), and developing and testing rates. A final option would be to have a preliminary review of available material and making a more comprehensive proposal . The Chairman spoke to Mr. Strom from Arthur Young and Company and Mr. Strom stated they were caught off-guard and weren't prepared to present a proposal for tonight's meeting. The Board decided to set a special meeting of June 24 to accept and review a rate study proposal from Arthur Young. The Board wanted to go over the proposal with Arthur Young and then make a decision on July 1. TTSA PLANT Since the Feeder F analysis being prepared by R. W. Beck is not completed, this matter was tabled until the next regular meeting. PUC'S GENERAL ORDER 95 Mr. Hobensack recommended the adoption of G.O. 95 as the District's safety/construction standard. The adoption would give the manager and public direction on the way the system should be constructed. The Chairman thought that in future years, the exist- ing electrical construction should be brought up to G.O. 95 standards. Mr. Joynt recommended the adoption of G.O. 95 should be by resolution. The resolution will be prepared and ready for consideration at the July 1 Board Meeting. Page One - June 17, 1975 `,_s-Z Audit Agreement - $7,200 Additional Audit Expense The Manager could not find any written or formal agreement with Arthur Young regarding their services and fees. The Board did accept Arthur Young's proposal on December 3. Mr. Craig explained that Brian Strom apparently sent the District a "confirmation letter" on December 20 which Mr. Strom dictated to the secretary over the telephone. Briefly, the letter outlined the cost of the audit and provided an "additional cost" clause. It stated that if unforeseen circumstances related to the condition of the District's records cause the fees to vary substantially from the estimate Arthur Young will inform the Board. Costs incurred that are peculiar to the initial audit normally are 10%-20/ of the estimated first-year fees. An original and a copy of this letter were provided. The copy was to be signed by the Board President to acknowledge the contents and agree to the terms, and was to be returned to Arthur Young. However, Arthur Young never received the acknowledged letter from the District. Mr. Joynt said he would research his files and report back to the .Board on July 1 of his findings. NORTHROP PROPERTY - POLE RELOCATION Mr. Hobensack reported that the District does not have an easement across Northrop's property where the poles are situated. Mr. Hobensack said that if the road in front of Mr. Northrop's property is public, then the power poles will be relocated in the road right-of-way. If it is a private road, the property owners will have to be confronted to secure a form of an easement for their supply of power. Mr. Hobensack was directed to contact Mr. Northrop to see what can be agreed to regarding the position of the poles. Mr. Hobensack felt the poles should be moved. AIRPORT WELL Mr. Craig reported that he and Mr. Hobensack met with the Airport District Commit- tee, Jack Domergue, Al Shaw, Mr. Edmondson. Mr. Cook and Mr. Strand were also present. The Airport District Committee is only interested in a short term commitment of a 25 year lease with a twenty-five year option after that. They are not consider- ing purchase in any form. They want twenty-five years of free water. The Airport District feels the well is worth more than the book value offered for purchase. The Board members felt the twenty-five year lease was not sufficient to cover the ultimate needs and obligations for water supply to Tahoe Donner. Don Strand stated the cost/benefit ratio for obtaining the Airport Well was becoming unrealistically high. A lease proposal prepared by Dan Cook will be submitted to the Airport District Board of Directors at their meeting of June 26. On July 1, a report on their decision will be brought to the PUD's Board meeting. Don Strand, Dan Cook, and John Craig reported that their next alternative to supply water to Tahoe Donner will be to drill additional wells. The other Board members agreed with this. PREPARATION OF MINUTES Mr. Joynt stated that recorded tapes of meetings are not used as official minutes since they can be lost, broken, destroyed, erased, etc. , by accident. He suggested that if the Board does desire verbatim minutes, it hire a part-time typist for that purpose only. However, he recommended that the minutes only show a minimum of discussion, subject matters, motion and-vote. If a person wishes his or her dis- cussion put in the minutes, the procedure would be that they request it prior to making that statement. It was agreed that the tapes would be more valid in Court than the summarized minutes. It was moved by Rex Anderson that the unfinished minutes of June 3, the entire min- utes of June 12 and all minutes in the future consist of the agenda topic, a brief description of what happened and the motion and vote (if there was action taken). Seconded by Roy Waters. ROLL CALL: Waters, aye; Sutton, absent; Wilson, aye; Anderson, aye; Craig, aye. So moved. Page Two - June 17, 1975 1. 3 Mr. Anderson stated he has been receiving duplicate copies of information from Mr. Joynt and Mr. Hobensack. The Board asked that the Manager request individuals writing letters to indicate who has received copies so that additional copies are not made and sent to Directors. DART'S LETTER OF JUNE 99 1975 The Chairman said that Mr. Doskow's letter of June 9 stated the District will accept the water lines when they are completed; and if they are not accepted when ready, Dart will incur additional expenses which will be passed on to the District without delay. He made reference to the "acceptance letters" written by Ken Krajewski to �..,, Teichert Construction, which Mr. Doskow feels have already obligated the District to the acceptance of the water lines. The Chairman requested Mr. Joynt to render a legal opinion on Mr. Krajewski 's letters. Mr. Joynt did not feel Mr. Krajewski 's letters were legally binding as Mr. Doskow stated in his letter that acceptance is contingent upon Dan Cook's approval of the system. Mr. Cook directed a letter to the Board dated June 17, 1975, which states at the present time, the system is not operational . Mr. Joynt said he would have an opinion on Ken Krajewski 's letters. At that time, also, the Board would consi der .a draft letter from the Board in response to Mr. Doskow' s letter. °:,,, In regards to Mr. Doskow's statement in his letter concerning "a prompt written reply", Mr. Joynt said he would write a letter to Mr. Doskow stating the Board is considering his letter and he will receive a response from the Board soon, SIERRA PACIFIC POWER-RATE CASE The Directors have received a copy of a letter from Mr. Hobensack to George Spiegel requesting he review a rate conflict from Sierra Pacific Power Company, Mr, Spiegel stated if he could not save the District money, he would let the Board know. Mr. Hobensack indicated there might be a conflict from Mr. Spiegel representing the District in this matter as he is also attorney for the Northern California Power Agency. Mr. Hobensack did not think this would be applicable. --� Mr. Hobensack informed the Board that he anticipates a meeting in the near future of the Northern California Power Agency and asked if any of the Board members wished to attend. The Agency is involved in obtaining cheaper power. The Board thought there were many advantages to joining this group and wanted it looked into. MISCELLANEOUS Mr. Hobensack reported that Mr. Anderson, Mr. Wilson and he are still planning to go to San Francisco on June 27 to review a Digital Computer and a recommendation from the Billing Machine Committee is still planned for July 1. MANAGER'S REPORT Rural i to Safety Operating Rules: Mr. Hobensack recommended that the Safety Rules presented by Rural i to Safety be adopted by the Board. He said he could not find where they conflict with G.O. 95. Mr. Joynt said he would have a resolution ready for the July 1 meeting for the adoption of the safety rules. The Manager was asked to look into whether the District has any other existing safety rules that might be duplicated by adopting the Ruralite Rules. Truckee Substation: Mr. Hobensack informed the Board that the reclosers are being pulled on the Truckee Substation. New switches have been installed. The "trip coils" have been changed so they will carry greater current. Oil Samples have been taken and sent away for analysis. Mr. Hobensack thought the new substation transformer would be here sometime in September. The Board asked for a confirmation date to assure that it arrives before winter. Standby Charges: Mr. Hobensack reported that he delivered the assessment figures to NCR and requested a second set of key-punch cards if the cost did not exceed 10%-20% of the total cost. He has not heard yet what the cost will be. The cards are ex- pected to be complete by June 27 and could be delivered to Nevada City on the 30th. The resolution requesting the collection of the standby charges will have to be approved and presented to the County by August 1. Relocation of Poles Downtown: Mr. Craig asked if the relocation of poles in the down- town area as requested by the County could be done by the District. Mr. Hobensack said Page Three - June 17, 1975 Relocation of Poles Downtown. . .continued it could if it was within the $3,000 bid requirement. The Board requested figures on the cost to move the poles and hydrant. Some of the Board members thought the re- location would be maintenance and not construction and could be done by District per- sonnel . DISTRICT COUNSEL REPORT Adams T.V. Damage Claim: Mr. Joynt advised the Board that the District's insurance company has recommended the rejection of the Adams' claim for T.V. damage during a power failure. The Notice of Rejection is prepared, however, Mr. Joynt did not bring it with him tonight. He stated the rejection can be made now, and he will send Ammftft the Notice of Rejection to the District office in the morning for a signature by the Chairman. It was moved by Director Waters and seconded by Director Wilson that the Adams T.V. Damage Claim be rejected. ROLL CALL: Waters , aye; Sutton, absent; Wilson, aye; Anderson, aye; Craig, aye. So moved. Line Truck: Mr. Hobensack said the total purchase price of the new truck is 29,938.00. He presented the Board with price quotes for borrowing money to finance the truck sometime ago. Tahoe National Bank requires that District funds be placed in their bank prior to giving a loan. Mr. Hobensack stated whether or not a loan is secured through Tahoe National , he would suggest the Consumer Deposit monies be transferred from Bank of America to Tahoe National . The amount currently in the Consumer Deposit fund is approximately $6,000. He said he thought there were some time certificates that could also be moved without any problem. Donner Pines West Condominiums: All of the condominium units at Donner Pines West have been disconnected at the meter with the exception of the night watchman. Mr. Hobensack said he is looking into whether the County has required that all the units be vacated due to condemnation. The Chairman wanted to see the lines go underground as planned and indicated in the blue-print plans. He suggested requiring the developer to install them underground prior to their reconnection. Mr. Hobensack suggested requiring the developer to either move the building that is constructed on the PUD's utility easement or pay to move the power lines under- ground that were constructed on the developer's land. Mr. Joynt asked to see the developer's plans which showT he power lines would be a resentl providing the installed underground. Mr. Crag stated that the line/ y p g condominiums with power was originally put in as a temporary means of power only and that conrete pads and conduit from the pads to the buildingshaye been installed for underground service. There being no further business to come before the Board, it was moved by Director Waters and seconded by Director Wilson that the meeting adjourn. All aye; so moved. The regular meeting of the Board of Directors was adjourned by the Chairman at 10:20 p.m. TRUCKEE-DONNER PUBLIC UTILITY DISTRICT BY: �. John Craig, Chairman a Board 4 il AJ) err lyn Ki nzi Recording S retary Page Four - June 17, 1975