HomeMy WebLinkAbout1975-07-01 Min - Board JULY 15 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. in the conference room of
the District.
ROLL CALL: Waters, present; Sutton, present; Wilson, absent at Roll Call , arrived
at approximately 9:10 p.m. ; Anderson, present; Craig, present.
EMPLOYEES PRESENT: Hobensack, Kinzie, and Grow
OTHERS PRESENT: Joseph Q. Joynt, John Sal as of CH2M Hill , 0. R. Butterfield
TTSA General Manager) , Mr. & Mrs. Brian Strom, Barbara Grow, Martin
Griffith (Sierra Sun Reporter), Ken Merriman of R. W. Beck and Assoc. ,
and Dan J. Cook
FEEDER "F" STUDY
Ken Merriman was present to submit to the Board a study of the F Feeder. Before
the Feeder F study, he presented some preliminary information on the long-range
transmission and substation study. He also placed a color-coded density map on the
wall to show the load needs for possible substation locations. The map was based
on information from advanced planning organizations such as the Nevada County Plan-
ning Department, Martis Valley Plan, U.S. Forest Service, zoning, etc. Additional
information is still needed and adjustments will be made to the densities when
more information is received.
The total kilowatt load within the District was based on the assumption that elec-
tric heating would be utilizied 100%. Director Sutton inquired about the basis for
the determination that the trend in the District is toward electric heat. Mr. Merri-
man said that most of the connections in Tahoe Donner were all-electric. Sutton
said that was due to the insistence of a former manager that all-electric be used.
Mrs. Sutton felt this condition did not necessarily exist now and she said that
Sierra Pacific Power Company penalizes their customers for the use of electric heat.
Mr. Merriman felt that the present trend is toward electric heat due to the
scarcity and increased cost of fossil fuels (oil and gas).
Mr. Merriman pointed out on the map locations of load centers if there would be
two substations (100 megowatts or less per load center) , three substations (65
megowatts per load center), and four substations (50 megowatts per load center) .
Mr. Merriman did not recommend there only be two load centers because of the feeder
length and high loss factor. From the loads, Mr. Merriman said the Truckee Sub-
station is in a good location and should be utilized.
Mr. Merriman summarized that R. W. Beck and Associates is presently working on the
five year load projection; best utilization of the Donner Lake Substation and what
can be done to it from the long-range standpoint; and power supply to the existing
substations and the long-range substations. He reported that Mr. Hobensack, Mr.
Craig and he were going to meet with Sierra Pacific representatives the following
day regarding possible utilization of some other power facilities with the intent
of trying to get a single point of delivery and establish that on the most economic
basis to the District. The long-range report will show a long-range transmission
plan, a long-range substation plan, and necessary improvements for the next five
years to meet the loads of the District.
Regarding the Feeder F analysis, Mr. Merriman explained that the first thing he
did was a conductor economic study which identifies which size feeder presents the
most economic use. The conductor economic study showed that loadings up to 2,000
kilowatts can be most economically carried on a 1/0 conductor. Loads above 2,000
�-- up to 4,000 kilowatts need a size 336 conductor. Mr. Merriman said that the 336
conductor is a good conductor size to use as it relates to other factors within
the distribution system. Mr. Merriman explained that the F Feeder comes close to
a future load center and that if reconductoring is done, it would be a good idea
to bring the feeder up to a size that can be used as a main feeder at some future
time. From the Truckee Substation to Olyimpi c Heights , the line i s presently reaching
full 2,000 kw capacity on the existing 1/0 line. Mr. Merriman recommended that the
F Feeder be reconductored from the Truckee Substation all the way out to the
Regional Sewage Treatment Plant.
Mr. Merriman proposed three steps to be taken to satisfy the ultimate load capacity
of the F Feeder. (1) Immediately construct a 336 tap which would carry the long-
range needs of the treatment plant, taking into account the econom?cs of the situa-
tion, and also meet the requirements of 100 kilowatts of power by the end of the year.
Page One - July 1, 1975
TTSA - Feeder F Study . . . continued
(2) In the summer of 1976, reconductor the section of line back to Olympic Heights
which Mr. Merriman thought would cause little or no disruption. (3) At some
future time within the next year or two, reconductor from Olympic Heights back to
the Truckee Substation. An alternative was suggested to Step (3) which entailed
reconductoring the line running back serving the existing sewage treatment facil-
ities and extending it across the Truckee River and tying into the end of Feeder
A. Mr. Merriman felt that the action suggested would take care of the load growth
for Feeder F until 1980 unless there is some unforeseen or unsuspected load growth
in that area.
The Board discussed with Mr. Merriman other ways of providing power to the TTSA
plant such as tapping the S.P.P.Co. 60 kv line and constructing a 60 kv distri-
bution line to the plan. Both alternatives were excessive in cost.
Mr. Butterfield and Mr. Salas discussed with the Board the cost of the recommended
reconductoring and the alternatives to providing power to the sewage plant. There
was concern expressed about what portion of the construction would be paid by
TTSA. In reply to a question from Mr. Sal as, Director Sutton stated that the
District would require that the TTSA would pay the expenses necessary to provide
power to the Regional Treatment Plant. Mr. Craig directed the Manager to provide
the TTSA with the various rate schedules.
It was decided that there was a need for additional information on cost to pro-
vide power from the 60 kv line owned by Sierra Pacific to 12 kv (cost to install
substation, etc. ) and then step the power supply down from 12 kv to 480 volts to
supply the TTSA Sewage Treatment Plant. Mr. Hobensack was directed by the Board
to compile this information prior to the next regularly scheduled Board meeting and
submit the information to the Board and Mr. Butterfield for a decision at that
Board meeting. The Board and Mr. Butterfield agreed that the cost to tap the 60
kv line to feed the sewer plant would be borne entirely by TTSA.
Mr. Hobensack was further directed to contact suppliers and find out the availabil-
ity and cost of materials needed to construct the 336 size conductor to the plant.
The Board also wished to know the type and quantity of materials the District has
in its possession at this time.
Mr. Joynt asked Mr. Butterfield if grant money is available to TTSA .for planning
studies, such as the one just completed by R.W. Beck and Associates. Mr. Butter-
field said that it is available. Joynt then asked if that means TTSA would pay
the fees for the study just completed by R. W. Beck and he said yes.
Mr. Butterfield stated TTSA would be willing to pay the cost to design the pro-
posed Feeder F extension to the TTSA plant even if at a later date, there is a
change in plans to proceed underground, or from another location, etc. He felt
the initial design work should be started as soon as possible to save time.
Director Sutton moved that the Board of Directors authorize R. W. Beck and Assoc.
to proceed with the plans and specifications, etc. , on Item 1 of the extension
of the existing feeder to the Treatment Plant contingent upon receipt of a letter
from TTSA that they will pay the cost of these services. Mr. Merriman said he
would need profile data from TTSA before designing the systeris extension.
Seconded by Director Anderson. ROLL CALL: Waters, aye; Sutton, aye; Wilson,
aye; Anderson, aye; Craig, aye; SO MOVED.
Mr. Merriman felt two weeks was adequate time to do the design work, etc. , as long
as the information needed from TTSA is provided �wi thout delay.
RATE STUDY
The Board has been presented with proposals from R. W. Beck and Arthur Young and
Company on conducting a rate study for the District.
Mr. Strom was present to answer any questions the Board may have on Arthur Young's
proposal . At this time, Mr. Strom indicated his firm could not quote an exact
amount for the rate study as they- were not sure how long the project would take
and how much public involvement there would be. Mr. Strom said he could submit
to the Board the hourly rate of the Arthur Young personnel that would be doing
the study so that the Board is aware of the cost. There was discussion on the
time schedule of the rate study.
Director Sutton moved that the Board retain Arthur Young & Company to do the
rate study with the provision that a more specific proposal be submitted about
Page Two - July 1, 1975
(b�
Rate Study . . . continued
the cost for Phase 1 to the Board so that the Board is aware when the cost is
exceeding the estimate. Mr. Sutton explained that this motion was based on her
believe that the District was already obligated to Arthur Young for the rate study,
that they have had closer contact with the District and the public, and are
familiar with rate setting trends in California. This motion died due to a lack
of a second.
Director Sutton moved that the matter of the Rate Study be tabled until the next
meeting. The other Board members felt there was no additional time needed; there-
fore, there was no second to this motion.
There was discussion regarding the public's part in the rate study, and at what
phase of the study the public would convey their concerns about rate structures.
Mr. Craig relinquished the Chair to Vice-Chairman Rex Anderson to second Director
Sutton's original motion regarding acceptance of Arthur Young's Rate Study Pro-
posal .
Mr. Joynt recommended that the Board require Arthur Young to submit frequent
reports, perhaps weekly, on the status of the study and bill to date. This would
keep the Board advised of the cost of the study so that there would not be an
overrun which has occured with the Audit.
Mrs. Sutton quoted a section from the Arthur Young Rate Study Proposal which
stated that they estimata the cost of Phase 1 to be between $3,000 and $4,000.
It goes on to state that should the cost be less, Arthur Young will bill accord-
ingly; and if the total cost exceeds $4,000, discussion and approval by the Board
will be gained prior to continuation. Phase 1 was estimated to be completed
within two weeks.
Mrs. Sutton restated her motion as follows: That the Board retain Arthur Young
and Company to conduct Phase 1 as described in their Rate Study Proposal dated
June 20, 1975, at a cost not to exceed $4,000 and according to the terms which
are set forth in the proposal which indicate that should the cost approach $4,000,
they will discuss this and gain the Board's approval before proceeding. Seconded
by Mr. Craig. ROLL CALL: Waters, no; Sutton, aye; Wilson, aye; Anderson, no;
Craig, aye; SO MOVED.
Mr. Strom stated he would have an acknowledgment. letter for the Board for the next
meeting.
AUDIT OVERRUN
There was discussion about the 1974 Audit cost overrun. Director Sutton explained
that she felt responsible for having encouraged the amount of research that was
done in the Audit; however, she could not accept responsibility for those Board mem-
bers that did not object to the additional research.
Mr. Strom said that at the May 5 meeting in Sacramento with Directors Craig and
Sutton, it was suggested that the $4,370 overrun due to the conditions of the Dis-
trict's contracts and records be billed to let the Board know the terrible condition
of its files and to let it be known that ihi s condition costs money.
Mr. Strom told the Board that Arthur Young would possibly accept partial payment
of the $7,200 bill , the $4,580 that specifically relates to Dart and S.P.P.Co.
contracts. He explained that the firm expects to be providing accounting services
for the District for a number of years and does not want the overrun to become an
issue that will affect the relationship between the Board and the accounting firm.
He stated Arthur Young would accept whatever payment the Board feels the services
received were worth.
Mr. Joynt asked if the Board received the results of the added research that resulted
from the Dart Contracts. The Board did receive a report several months ago about,
among other things, the payment record of the Tahoe Donner water and electric fees,
and the dates of the transfer of monies from trust accounts to the general fund.
Mr. Joynt recommended that a copy be received in the District office of the con-
tract file that was formulated by the accountants during the audit.
Mr. Waters moved that further discussion be tabled until July 15 meeting so that
additional information could be received. Seconded by Director Wilson. ROLL CALL:
Waters, aye; Sutton, no; Wilson, aye; Anderson, aye; Craig, no. SO MOVED.
Page Three - July 1, .1975
t�L.
Audit Overrun .. . continued
Mrs. Sutton asked the record to indicate that on June 3, she asked that the audit
overrun bill dated May 20 be discussed prior to adjournment. The Chairman declined
and the meeting adjourned to executive session.
Mr. Strom was asked when the Board could expect the Audit. He stated that the
draft audit has gone to various committees within the organization for possible
revision; and if final typing is done within the next week, it could be to the Board
at the end of a week.
CHANGE ORDER FOR BYARS CONSTRUCTION }-W-%
Mr. Cook presented the Board with a construction change order which (1) deletes
from the contract with Byars Construction the boring and jacking under the rail-
road tracks. There is an approximate $2,300 restocking cost for the casing that
will not be recovered with the deletion. The second item on the change order
is the additional expense necessi ated by increasing the line size from eight inch
to twelve inch. This will cost $16,812.90 which is billable to Dart Resorts.
The third item is the installation of 450 feet of eight-inch line at a 'force-
account' cost of $3,500.
The necessity for the third change listed above was explained by Dan Cook: Last
year, after the construction contract was bid, the encroachment permit was
received. Previously, local State of California officials had stated it would be
satisfactory to trench the water line under the_ freeway overpass on Donner Pass
Road. The Sacramento State of California offi dal s required that the water line
under the freeway overpass be bored and jacked. Mr. Cook explained that this could
be very costly for 450 feet of line. Therefore, a compromise has been reached
where the District is required to put the steel pipe in a sleeve at a 'force-
account' estimated additional cost of $3,500. The $3,500 additional cost will
come from the contingency fund.
The deletion of the bore is because the PUD joined in the Truckee Sanitary Dis-
trict's contract with Byars Construction at half the original contract price.
The PUD will pay the Sanitary District $9,155.20 for the bore. The remaining
$9,155.20 will go into the West River Street Assessment District's contingency
fund.
Mr. Cook recommended the District immediately bill Dart Resorts the $16,812.90
cost for the line oversizing if the Change Order is acceptable to the Board. The
District should pay the Sanitary District $9,155.20 for the boring.
The Board discussed the possibility of installing underground electric conduit
in the same bore as the water and sewer lines under the railroad tracks.
Mr. Cook said the Truckee Sanitary District should be advised. Mr. Hobensack said
he would determine the requirements of G.O. 128 in regards to the proximity of the
water and sewer .lines. Director Waters moved and Director Wilson seconded that
the District proceed with the installation of the underground conduit if the
materials are in stock by Byars Construction at a maximum cost of $500. ROLL CALL:
Waters, aye; Sutton, aye; Wilson, aye; Anderson, aye; Craig, aye; SO MOVED.
Director Sutton moved that the Board approve Change Order #2 of the West River
Street Assessment District as recommended by the Engineer of Work and as accepted
by the contractor. Seconded by Director Anderson. All aye by voice vote. The
financial instructions for this Change Order will be taken care of by the Engineer.
Mr. Cook replied to the question of inspection of the water line project that there
is one full-time inspector and one part-time inspector on the job.
Mr. Cook presented the Board with a Progress Pay Estimate in the amount of
$33,809.04 for the Byar's Construction work from the contract award through
June 25, 1975. It was moved by Director Wilson and seconded by Director
Sutton that the Board approve the Progress Pay Estimate #1. Passed by voice
vote. It was agreed that payment would be presented to the Board for approval
at the July 15 meeting.
At the request of the Truckee Fire District, Mr. Cook suggested the Board consider
mvoi ng the location of a fire hydrant located on the Northsi de of Donner Pass
Road. It is connected to a three-inch main, has poor delivery, and the source
is the Town Tank. Mr. Cook recommended the hydrant be moved across the street
and attached to the eight-inch main for which the source of water is the Donner
Trails Tank. The pressure would be greater and the amount of deliverable water
would be four times that of its present location. The cost is $1,000 and the
Page Four - July 1, 1975
1(7
West River Street Assessment District . . . continued
money would come from the West River Street Assessment District contingency fund.
Mr. Cook explained that the cost should be paid from the contingency fund because
the money is the District's from the West River Street Assessment District's in-
vestment in the total water system. Director Wilson moved that the Board expend
$1,000 of the contingencies money for the purpose of relocating the above-mentioned
fire hydrant. This relocation will be handled by Change Order to the existing con-
tract with Byars Construction. Seconded by Director Waters. All aye by voice vote.
Quintana Line Extension: John Quintana and Nevada County now wish to be included
in the extension of the West River Street water line. Mr. Cook stated the exten-
sion cost of $4,683.00 would have to be deposited with the District prior to ex-
tension of the line. Dart Resorts will have to pay approximately $2,600 for the
oversizing of the line from six inch to twelve inch. John Quintana has asked
Mr. Hobensack to advise the Board that he has the funds to pay the cost of the
line extension.
Mr. Waters moved and Mr. Wilson seconded that the Board give advance approval of
entering into Contract Change Order #3 which would extend the West River Street
Assessment District water line east to serve John Quintana providing that Mr. Quin-
tana pays his full assessment in cash and that Dart concurs with the line over-
sizing. Al 1 aye by voice vote.
Response to Dart's Letter of June 9: The Chairman asked if Mr. Joynt has reached
an opinion of Mr. Krajewski's letters to Teichert Construction regarding acceptance
of the Tahoe Donner water lines. Mr. Joynt advised the Board that this matter should
be held in executive session.
Airport Well : Director Sutton reported that she attended a recent Airport District
Board meeting at which time the acquisition of their well was discussed. The
Airport District is primarily interested in assuring an adequate water supply to
their District and the irrigation of their proposed landscaping. However, Mrs.
Sutton felt the Airport Board needed engineering advice on what water needs they
will have in the future. The Airport Board did indicate they would be willing
to wholesale water to the PUD for a 20-year period. Sid Karsh of Dart Resorts
.-.. responded to the need for more engi rLderi nq input by indicating they would pay the
cost to have Dan Cook prepare some information that may help the Airport District
determine the advantages of turning the well over to the PUD.
It was decided to have Dan Cook set up an Airport Well Committee meeting with the
PUD Dart Committee, preferably prior to the Airport District's Board of Directors
meeting on July 17.
Bills for Board Approval : Director Wilson moved that the Board approve the two
bills listed for Board's approval . Seconded by Director Anderson. ROLL CALL:
Waters, aye; Sutton, aye; Wilson, aye; Anderson, aye; Craig, aye; SO MOVED.
Minutes: Approval was tabled until the next meeting.
Director Sutton expressed concern that certain bills were not presented for pay-
ment at this meeting. She felt the Sanitary District's assessments which were
received in April and due June 2 should have been paid; and since payment has not
been made, penalties are being incurred. She also was concerned about the REA
second quarterly loan payment which was due today and she thought it should have
been listed on tonight's Bills for Board's Approval . This Statement was received
June 16, 1975 in the amount of $15,608.38. Mr. Hobensack was not aware of this.
Budcet: The Board briefly discussed the actual expended figures to date compared
to those budgeted to date. Mr. Craig asked if Mr. Hobensack was going to consolidate
the water and electric budget. Mr. Hobensack stated he hoped he could lump the
figures together as recommended by Arthur Young. Further discussion was tabled
until the next meeting.
* * * * * * * * * * * * * *
The Board adjourned the meeting to executive session to discuss Mr. Joynt's opinion
on Mr. Krajewski 's letters to Teichert Construction. Following the executive session,
the meeting reconvened to regular session.
It was moved by Director Waters and seconded by Director Anderson that the meeting
adjourn. ROLL CALL: Waters, absent, left the meeting following the motion;
Anderson, aye; Sutton, aye; Wilson, no; Craig, no; MOTION FAILED.
Page Five - July 1, 1975
Adjournment . . . continued
Discussion was taken up on opening a checking account at Tahoe National Bank.
It was moved by Director Wilson and seconded by Director Anderson that the Board
adopt the resolution with regard to opening an account with Tahoe National Bank.
The authorized signees would be the existing three directors that presently sign
on the other PUD accounts: Roy Waters, Pat Sutton, and Rex Anderson. ROLL CALL:
Waters, absent; Sutton, aye; Wilson, aye; Anderson, aye; Craig, aye; SO MOVED.
There was discussion about taking action on what transpired in executive session.
However, no action was taken.
* * * * * * * * * * * * * *
It was moved by Director Wilson and seconded by Director Anderson that the
meeting adjourn. ROLL CALL: Waters, absent; Sutton, aye; Wilson, aye; Anderson,
aye; Craig, aye; SO MOVED.
The regular meeting of the Board of Directors was adjourned by the Chairman at
1:37 a.m. to 7:30 p.m. , Monday, July 7.
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
BY• 4 _
OHN A. CRAIG, CHAIRMUJF THE BOARD
i
S
It
MER ILYN KIN RECORDING CRETARY
Page Six - July 1, 1975
RESOLUTION NO. 7507
of the
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
OPENING BANK ACCOUNT AT TAHOE NATIONAL BANK
AND AUTHORIZING SIGNATURES
NOW, THEREFORE, BE IT RESOLVED that the Truckee-Donner Public
Utility District establish in its name one or more deposit accounts with
Tahoe National Bank, upon such terms and conditions as may be agreed upon with
said Bank and any of the following named persons, and that funds shall be
withdrawn from said accounts on checks or orders of this organization
signed by and two of the following named persons:
/s/ M. REX ANDERSON, VICE CHAIRMAN
/s/ PATRICIA S. SUTTON, TREASURER
/s/ ROY WATERS, DIRECTOR _
and may be payable to bearer, or to the order of, or for the use and benefits
of the signer or signers thereof, and the certification by the Secretary of
this organization as to the signatures of said persons shall be binding
upon this organization; each of said persons hereby is authorized for and
on behalf of, and in the name of this organization to endorse and deliver to
said Bank for any purpose and to any amount commercial paper of any kind,
negotiable or non-negotiable, executed by others and owned, or held or
payable to this organization, and that all authorizations with respect to
this account shall remain effective until Bank receives written notice of
revocation at the office where this account is maintained.
t
PASSED AND ADOPTED AT A REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE TRUCKEE-DONNER PUBLIC UTILITY DISTRICT DULY CALLED AND HELD BY THE
FOLLOWING ROLL-GALL VOTE. THE MEETING WAS HELD JULY 19 1975.
AYES: Pat Sutton Fosten Wilson, Jr. Rex Anderson ,
John Craig .
NOES: None >
ABSENT: Roy Waters •
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
B Y 7- 7S
Sohn Craig, Chairman he Board
ATTEST:
e rk Thereof
l � �