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HomeMy WebLinkAbout1977-08-15 Min - Board AUGUST 15, 1977 The regular meeting of the Board of Directors of the Truckee-Donner Public Utility District was called to order by the Chairman at 7:13 p.m. in the Confer- ence Room of the District Office. ROLL CALL: Huber, present; Maass , present; Kuttel , absent at roll call but arrived at 7:42 p.m. ; Sutton, present. EMPLOYEES PRESENT: Seymour, Painter and Reed CONSULTANTS PRESENT: Grumer and Cook OTHERS PRESENT: See attached list of audience attendance BILLS FOR BOARD APPROVAL AND STATEMENT OF GENERAL FUND The Board discussed with the Manager the revised billing received from Tahoe Truckee Sanitation Agency. Mr. Seymour reported that the District is being charged for 12 units at the Office/Warehouse at $7.00 per unit, or $84 for six months , plus the rental house owned by the District. The house was not charged for until the District inquired about the basis of the billing. The service charge for the house is $55 per six month billing period, which is a higher rate than other residences because it is public property. The Manager was requested to determine how other public agencies are reacting to the bill . Mr. Maass moved for the approval of the bills minus the $139.50 TTSA sewer charge. Seconded by Mrs. Huber. ROLL CALL: Huber, aye; Maass, aye; Kuttel , absent; Sutton, aye; So ordered. MONTHLY FINANCIAL REPORT This item was not received by the Board but was expected to be received a week prior to the September 6 meeting and discussed at that meeting. COMMITTEE REPORTS Mr. Maass reported that he and the Manager would be meeting to discuss tentative budget categories and attempt to formulate a format for the budget. He indicated that the District should have a budget by the first of the year. Mrs. Sutton reported that the Water Committee met on August 9. However, she indicated the committee was in no position to report at this time. Mrs. Sutton also reported that the By-Laws Committee will be meeting in the afternoon of August 18. MANAGER'S REPORT STATUS REPORT: REPLY TO NEVADA COUNTY PLANNING DEPARTMENT INQUIRY RE CUMULATIVE IMPACE ON SERVICES The Manager reported on the draft letter to the Nevada County Planning Department regarding cumulative impact on services. He indicated that he was going to take the position that new subdivisions in the Truckee area have an adverse impact in that they just create more pipelines and power lines that don' t serve anybody. He indicated that a copy of the draft letter would be sent to the Board before being sent to the County. PROGRESS REPORT ON FEEDER F PROJECT Mr. Seymour reported to the Board on the progress of the Feeder F rebuild project. He indicated that the project is close to completion, and problems have been resolved, including a design problem near the Truckee Substation where routing had to be changed. See Manager's Report attached to Minutes. UPDATE ON WATER CONSUMPTION Mr. Seymour reported to the Board on water consumption within the past three weeks in the District, and indicated that the rate of consumption has been fairly constant. He reported that the Southside Well has been shut down and disconnected from the system because the water does not meet Health Standards. Southside Spring is still being used, and Wells A and B are being used some, particularly on weekends. Water from Southside Well is being diverted and used to supply August 15, 1977 Minutes . . . . August 15, 1977 Page Two Update on Water Consumption . . . continued Ponderosa Golf Course. Please see Manager's Report attached to these Minutes. Mr. Seymour reported that the Southside Well is being tested for bacteria everyday. Mr. Cook indicated that he did not believe that the contaminated water would clear up. Mr. Cook reported that he thought the well casing has holes in it in the area where a sanitary seal should be. REPORT ON TTSA SERVICE CHARGE, BASIS FOR BILLING, ETC. Mr. Seymour reported to the Board on the matter of the TTSA Service Charge during the Board's discussion of bills for Board approval . See the Manager's Report attached to these minutes for a more precise summary of this discussion. REPORT ON RENTAL HOUSE ARRANGEMENT Mr. Seymour reported to the Board on the matter of the PUD rental house arrangement. For the past four years , the house has been rented to the same employee for $75 a month plus utilities. For several years prior it was rented to another employee for $60. The present occupant has put in some car- peting and some type of fireplace. The house needs insulation. See Manager' s Report attached to these minutes. This matter was placed on the September 6 agenda for further consideration by the Board CONFIRMATION OF INTEREST IN DISTRICT PARCEL ON HIGHWAY 267 Mr. Seymour indicated to the Board that Mr. Crenshaw is still interested in a lease arrangement on a parcel . Mr. Grumer said that the District can legally lease land, and there was discussion about taking bids for a lease after a minimum bid had been established and public notice had been given. Mr. Cook was requested to recommend the approximate size of the piece of land the District should consider leasing, and directed to prepare a plat of a suitable parcel , and an estimate of its value. Also, see Manager's Report attached to these minutes. REPORT RE WHETHER DISTRICT LANDS SHOULD BE POSTED Mr. Seymour reported to the Board on whether District lands should be Posted in order to avoid liability to the District. For a more unerring summary of Mr. Seymour's report on this matter, please see the Manager's Report attached to these minutes. (� Mrs. Huber moved that the Manager post for "NO TRESPASSING" on properties , including the Wells and Spring complexes and substations. Seconded by Mr. Maass. (Mr. Kuttel arrived at 7:42 p.m. ) Mr. Grumer stated that signs should be posted anyplace where there is a fence, a facility, a structure, a room, a building, or anything of value. ROLL CALL: Huber, aye; Maass , aye; Kuttel , aye; Sutton, aye; So ordered. VAN WETTER MATTER: REPORT RE AMOUNT OF WATER FEES PAID BY ADJACENT PROPERTIES This matter was discussed between the Board, the Manager, the attorney, and the engineer. See copy of Manager's report attached to these minutes for in- formation regarding the Van Wetter water main extension. This matter was placed on the September 6 agenda before which time the Board would be provided information regarding what fees the library, medical building, and new hospital expansion have paid to the District for water fees. REPORT ON SALES OF SURPLUS MATERIALS - REQUEST FOR EXTENSION OF TIME Mr. Seymour requested an extension of time for the deadline for submitting bids for surplus materials as the advertising has not yet appeared on the sale of the materials. It was the consensus of the Board that Mr. Grumer would prepare an amended resolution extending the time for submitting bids on surplus materials. August 15, 1977 Page Two Minutes . . . . August 15, 1977 Page Three VAN WETTER MATTER (continued) Mr. Cook discussed with the Board a comparison of the agreed-upon payback arrangement for the Van Wetter water main extension and a hypothetical applica- tion of the present Rule 15 to all the properties benefiting from the water line. He indicated that he would provide this comparative information in written form for the Board's review before the next meeting. The Manager reported that there has been an inquiry from the US Forest Service regarding whether or not the District will serve a 150 acre parcel that may be traded to a private party. The consensus of the Board was that the District should not make any commitment to the USFS to serve a parcel that may be traded. DISCUSSION WITH ROBERT BUTLER RE ROAD SURFACE AND DRAINAGE ENCROACHMENT Mr. Robert Butler again appeared before the Board regarding his property in Ponderosa Palisades, Unit 1. Mr. Butler reviewed for the benefit of the new directors the history of his problem with the District regarding a road easement granted to the District for access to a water tank. Mr. Grumer requested that this item be placed on the September 6 agenda so that he could provide the Board with a report on the past discussions between Mr. Butler, the Board and staff. Also discussed was power to Mr. Butler' s property. Steve Grumer recom- mended that the power arrangement be covered by Board resolution at the appro- priate time. No action was taken on this matter. The Board requested to receive information including copies of the agreement with Mr. Butler and all correspondence and reports for the next meeting no later than August 29. STAFF REPORT AND CONSIDERATION OF EAST RIVER STREET WATER LINE EXTENSION AGREEMENT WITH JOHN QUINTANA Mr. Cook reported that Southern Pacific is preparing an encroachment permit for Mr. Oui,ntana to install the water line but that it would not be obtained until mid-September. Southern Pacific has indicated that they would allow the line to be installed with a right-of-entry. Cook indicated he had requested such a right-of-entry. Following discussion, Mr. Cook indicated that there would be a new pay-back computation schedule provided the Board within a week. See copy of letter dated July 25 from John Quintana and letter dated July 27 from Robert Sutton attached to these minutes. CONSIDERATION OF RESOLUTION ALLOWING DIRECTOR-AT-LARGE POSITION TO REMAIN VACANT UNTIL FILLED AT GENERAL ELECTION ON NOVEMBER 8, 1977 Mr. Maass moved for the adoption of Resolution 7719, Calling for an Election to Fill the Vacancy on the Board of Directors. " Seconded by Mr. Kuttel . ROLL CALL: All aye; so ordered. CONSIDERATION OF RESOLUTION APPROVING AGREEMENT WITH DART INDUSTRIES RE SECURITY FOR THEIR PARTICPATION IN HIGHWAY 267 WATER SYSTEM INTERTIE/RIVER CROSSING PROJECT The Board discussed with Dan Cook, Mr. Grumer and Mr. Seymour which District owned land could be used as security for the District' s participation in the Highway 267 water system intertie/river crossing project. Following discussion, Mrs. Huber moved that the Board approve the agreement between Truckee-Donner Public Utility District and Dart Industries Inc. respecting the Truckee River crossing and like the engineer to prepare Exhibit A with the parcel shown as the Southside Complex "P" on the parcel map and the attorney to prepare a resolution for the next meeting. Seconded by Mr. Maass. ROLL CALL: All aye; so moved. STATUS REPORT AND IMPLEMENTATION OF FARMERS HOME ADMINISTRATION LOAN APPLICATION A. Authorization for Letter Outlining Arrangement between District and Counsel : It was agreed that this authorization was not necessary. B. Selection of Hydrology Consultant: Mr. Kuttel moved that the Board hire Bill Nork as consultant on the Southside Well for the FHA loan project. Seconded by Mrs. Huber. ROLL CALL: All aye; so ordered. C. Board Action Pursuant to FmHA Loan: Mr. Kuttel moved that the Board o,,,,,ic+ 1ti 1a77 Page Three Minutes . . . . August 15, 1977 Page Four Farmers Home Administration Loan Application . . . continued approve Resolution 7720, "Providing for the Issuance and Sale of Emergency Drought Relief Promissory Notes of 1977; Prescribing the Amount, Date, Form and Maturities Thereof; Fixing the Rate of Interest Thereon; and Providing for a Pledge of Revenues to Pay the Principal Thereof and Interest Thereon. " Seconded by Mr. Maass. ROLL CALL: All aye; so ordered. D. Other: Mr. Cook reported that the Plans and Specifications will not be completed for another ten days. He indicated that all the rights-of-way have been taken care of. The Chair placed on the agenda for the next meeting a review by Counsel of the CEQA requirements to determine whether the District's Ordinance needs amending. Mr. Seymour reported that a meeting of the Sierra Planning Organization will be held on August 19 at 9:30 a.m. in Nevada City and that the District must be present. Mr. Seymour indicated he would attend the meeting on behalf of the District. Mr. Seymour reported that the original application included $16,000 to cover the first year's debt service on advice of Bond Counsel , Peggy McElligott, Farmers Home Administration does not allow that, however, so there is a suffi- cient amount of money in the loan application request to include the cost of the additional work on the Prosser Heights Well and Donner Creek Well #1. Mrs. Huber moved that the Board authorize the amendment of the application to include the raising of the Prosser Heights Well and the abandonment of the Donner Creek Well #1. Seconded by Mr. Maass. ROLL CALL: All aye; so ordered. CONSIDERATION OF AGREEMENT WITH DART RE DISTRICT USE OF WELLS A & B IN TAHOE DONNER The Board discussed the agreement with Dart regarding District use of Wells A and B in Tahoe Donner. It was agreed that Mr. Grumer would clarify Paragraph 7, revise Paragraph 3 and discuss with Mr. Jim Thompson, attorney for Dart, Paragraph 8, and report back to the Board at the September 6 meeting. CONSIDERATION OF RESOLUTION ESTABLISHING DISTRICT POLICY RE HIRING OF RELATIVES The Draft resolution was amended during discussion to also prohibit the employment of relatives of Management Personnel and Consultants. Mr. Maass moved for the adoption of Resolution 7721, "Establishing District Policy Regarding the Hiring of Relatives". Seconded by Mr. Kuttel . ROLL CALL: All aye; so ordered. REVIEW OF PLAN FOR CUSTOMER REBATE RESULTING FROM SPPCo. RATE CASE SETTLEMENT Mr. Seymour discussed with the Board a possible plan for the customer rebate resulting from Sierra Pacific rate case settlement. He reported that a portion of the work would have to be done manually and a portion could be done on the computer. He indicated that according to his calculations, the average customer rebate would be $50. No action was taken on this matter at this time. Mr. Seymour reported that there had been 65 applications for the Meter Reader position, and that Bruce Waltrip has been hired. MISCELLANEOUS UNFINISHED BUSINESS Mrs. Sutton asked that the record show that the Board was misinformed regarding the EDA request from the standpoint of the amount of money in the total applications having anything to do with how much was actually allocated to other agencies. See letter from Nevada County dated August 10, 1977, attached to these minutes. 7-11 Store: The Board discussed the matter of the electric service to the 7-11 store complex. See letter from Richard Burge dated August 4, 1977 attached to these minutes. The Manager directed the Board's attention to the need to amend the Resolution re Electric Hookup Fees to reduce the allowance for underground August 15, 1977 Page Four Minutes . . . . August 15, 1977 Page Five Misc. Unfinished Business . . . continued conductor to 100 feet. The Chair requested that an amendment to this Resolution be prepared for the next meeting. The Chairman directed that the attorney, the engineer and the Manager confer regarding the entire problem for both utilities at the Donner Center as soon as possible and that the Board receive a review of the problem as it developed in the past. This matter was placed on the September 6, 1977, agenda. Director Huber inquired about the item re Authority for Use of Private Plane on District Business which was supposed to appear on the agenda for this meeting. The Chair indicated that it was intended to be included on the agenda, and must have been omitted accidentially when the final agenda copy was prepared. Mrs. Huber also inquired why Minutes for Board approval had not been included on the agenda for this meeting. Mrs. Sutton said that she had not included approval of the Minutes because the drafts were received so late. Mrs. Sutton requested that the letter from Berliner dated July 29 in the Richmond case be attached to these minutes. The Chair reminded the Board of the State Water Resources Control Board hearing on Tahoe Basin Water in Tahoe City on August 25-26, and requested that the notice of that hearing be attached to these Minutes. It was agreed that Mr. Cook would provide information to the Board regarding surplus lands and that the matter would be placed on the September 19 agenda as Mr. Cook would not be present at the September 6 meeting. The Chair also inquired about the status of the request from Mr. Joergeson, the attorney for Royal Globe, for the District' s records re the Richmond-Dart case. Mr. Grumer indicated that how to provide the material is still under discussion. Mrs. Sutton inquired whether the Board wished to schedule a review of the previous commitment by the District to enter into a lease of the 138 acre parcel to Sierra College. Because the agendas are so crowded, it was decided not to schedule this until some later date. It was reported that Mr. Seymour and Mr. Maass will attend the Energy Commission Workshop on load management tomorrow (August 16) in Sacramento. Director Huber inquired about the necessity for the list of items brought up under Miscellaneous Unfinished Business to be so long, and whether most of them shouldn' t be indicated on the agenda. The Chair indicated that this seems to be the only way for the Board to be able to keep track of what's happening on items until they are ready to come back on the agenda. Mr. Grumer reported that he would check into the outcome of the small claims action against Tom Joerger and report back to the Board. CONSIDERATION OF RESOLUTION HIRING ROBERT SLATTERY AS GENERAL FOREMAN Mr. Grumer recommended that no action be taken on this resolution. It was agreed that the resolution would be put in ratification form and be placed on the September 6 agenda. MANAGER'S RECOMMENDATION AND AUTHORIZATION TO RETAIN TELEMETRY SYSTEM CONSULTANT Mr. Maass moved for the adoption of Resolution 7722, "Retaining a Telemtry Consultant. " Seconded by Mrs. Huber. ROLL CALL: All aye; so ordered. REVIEW OF LOCAL AGENCY INVESTMENT PROGRAM Mr. Grumer was directed to prepare a resolution which would implement the District's participation in the Local Agenday Investment Program for the September 6 meeting. REVIEW OF REA-FHA WEATHERIZATION LOAN PROGRAM See memo from Mrs . Sutton dated August 11, 1977, attached to these minutes for a summary of the meeting held on August 3, 1977, regarding the REA-FHA Weatherization Loan Program. It was agreed that the details of the FHA policy would be provided the Board upon receipt and put back on the agenda for further August 15, 1977 Page Five Minutes . . . . August 15, 1977 Page Six REA-FHA Weatherization Loan Program . . . continued consideration before a decision is made. REPORT ON BROKEN WATER BOXES IN TAHOE DONNER SUBDIVISION Mr. Maass moved the Board accept the replacement of the boxes by Dart along with the encroachment permit. Seconded by Mrs. Huber. ROLL CALL: Huber, aye; Maass , aye; Kuttel , aye; Sutton, no; So ordered. Mrs. Sutton asked that the record show that "I believe the District should .-. not allow the subdivider to work on the system after a year and a half after acceptance of the system. . . . .directly work. " a., INSPECTION REPORT ON PUMP INSTALLATIONS AT DONNER TRAIL AND SOMA SIERRA PUMPING STATIONS Mr. Cook reported that both of the additional pumps have been installed at Donner Trail and Soma Sierra Pump stations, but that they are not yet approved for acceptance due to minor items. The new pump at Soma Sierra is capable of delivering 380 gpm, approximately the sum of two of the other pumps. MISCELLANEOUS DISTRICT ENGINEER REPORT Mr. Cook reported that the Sanders Well has been bottomed out at approximately 783 feet and that Dr. Sharp is analyzing the electrical logs. STATUS REPORT RE OBTAINING SPECIAL COUNSEL ON TAHOE DONNER MATTERS Mr. Grumer reported that he now has a list of four interested firms for Special Counsel on Tahoe Donner matters. It was agreed that the scheduled August 22 Special Meeting for the purpose of interviewing potential firms would remain scheduled. REPORT RE SIERRA MEADOWS UNIT 1 WATER FEES Mr. Grumer requested that this matter be tabled until he meets with Mr. Seymour and Mr. Cook regarding a resolution of this problem. DRAFT POLICY STATEMENT THAT DISTRICT WILL SERVE UTILITIES WITHIN ITS BOUNDARIES At the request of Mr. Grumer, this matter was tabled to the September 9 meeting. WATER CONSERVATION At the request of Mr. Grumer, this matter was tabled to the September 9 meeting. MODEL WILL-SERVE LETTER At the request of Mr. Grumer, this matter was tabled to the September 9 meeting. * * * * * * * * * * * Mr. Kuttel moved that the meeting adjourn. Seconded by Mrs. Huber. No vote recorded. The Chairman adjourned the meeting at 12:06 a.m. TRUCKEE-DONNER PUBLIC UTILITY DISTRICT GG� PATRICIA S. SUTTION, AIRMAN A. Milton Seymour, clerk of the Board August 15, 1977 Page Six TRUCKEE DONNER PUBLIC UTILITY DISTRICT STATEMENT OF GENERAL FUND - August 12, 1977 Bank Balance - July 28, 1977 $225,062.21 Truckee Electric Revenue 62,513.88 Truckee Water Revenue 9,942.77 Donner Lake Electric Revenue 27,163.63 Tahoe Donner Water Revenue 1 ,678.04 Miscellaneous Billings Revenue 2,563.69 Miscellaneous Revenue 5,956.98 $334,881 .20 Approved Billings $119,185.74 Less : TTSA billing not approved ( 84.00) Bank of America - Federal tax deposit 1 ,792.63 Dept. of Benefit Payments - Monthly deposit, SDI , State income tax 875.73 Petty Cash - replenish fund 89.34 Refunds due on line extensions: Robert Lindsey 16.34 James Madding 16.33 Kenneth Vogt 16.33 Carl Bartlett 33.96 Carl Bartlett 23.75 Walter Treichler 21 .40 Ogburn & Nichols 13.96 Roland Whited 13.98 State Board of Equalization - Quarterly deposit 1 ,080.02 ($123,095.51 ) for energy surcharge fees collected PAYROLL 7/31/77 OT DT Standby Gross Net Barry 572.00 436.09 Chapman 540.80 399.30 Connell 34.88 631 .63 460.60 Grow 808.00 605.88 Marsh 544.80 402.20 Lopez 13.85 752.25 542.22 Painter 310.84 233.65 Pomponio 33.12 474.72 351 .63 Reynolds 847.80 639.68 Rose 73.40 632.60 420.62 Rully 24.42 805.86 509.75 Seymour 1 ,250.00 844.18 Silva 104.37 94.00 998.97 720.87 Straub 27.69 110.76 92.30 969.15 670.49 Wiser 433.60 300.89 311 .73 110.76 186.30 10,573.02 7,538.05 ($ 7,538.05) Bank Balance - August 12, 1977 $204,247.64 Bills for Board Approval : Martin McDonough - Legal services 1 ,537.24 Nevada Co. Assessor's Office - Assessor's maps 70.00 Paper Clip - Temporary secretarial help 198.00 So. Pacific Trans. Co. - Lease agreement - pole line crossing. 5.00 ,�► Truckee Donner Disposal - July & Aug. garbage service 70.00 T.T.S.A. - Sewage treatment facilities; office, warehse. P.U.D. house 139.50 U.S. Leasing - Property tax bill - postage machine 20.77 ( 2,040.51 ) Balance of account after payment of above $202,207.13 t TRUCKEE-DONNER PUBLIC UTILITY DISTRICT POST OFFICE BOX 309 TRUCKEE, CALIFORNIA 95734 TELEPHONE 587-3896 AUDIENCE ATTENDANCE FOR THE MEETING OF 7 PLEASE PRINT YOUR NAME: 3. 4. 5. 6. 7. 8. 9. 10. 11 . 12. 13. 14. 15. lb. 17. 18. 19. 20. 21 . 22. -7 7 c7 23. r s. a MANAGER'S REPORT Aug. 15, 1977 Board Meeting 1 . Status Report: Reply to Nevada County Planning Department Inquiry re: Cumulative Impact on Services A letter has been drafted and is-being sent on Tuesday, Aug. 16, 1977 regarding the impact of services on new subdivisions. 2. Progress Report on Feeder "F" Project The Feeder "F" reconditioning project is nearing completion. A few minor problems have developed in the vicinity of the Truckee Substation result- ing in minor changes in the project layout. Mr. Bill Taylor of R.W. Beck was in town today and concurred with our general foreman and Slater Elec- tric on the changes to be made. These changes will have little effect on the overall project and will tie-in with the replacement of the Truckee Substation next year. 3. Update on Water Consumption The water consumption has been holding fairly constant for the past three weeks including this past weekend. With the shutting off of Southside Well we have had to activate Wells A and B which have provided about 450,000 gallons of water over the past weekend. Additionally, we are no longer providing water to Ponderosa Golf Course from Southside Springs. Instead, we have installed a meter in the output valve of Southside Well No. 1 and are providing water from the contaminated well . 4. Report on T.T.S.A. Service Charge, basis for billing, etc. The basis for billing from T.T.S.A. is as follows: 1 unit - sink, basin 3 units- toilet 3 units- flubs , showers Our office and warehouse was based on 12 units at $7.00/ea. or $84.00 A single family residence is $39.00 but our single family residence is public property and tax exempt so it is in a different classification, this cost is . . . . . . . . . . . . . . . . . 55.50 $139.50 The purpose of these billings is to buy chemicals to start the plant up. This bill is listed on the bills for board approval . 5. Report on Rental House Arrangement The District rental house by the P.U.D. office has been rented the last four years for $75.00 per month plus utilities. Each tenant, over the Manager's Report page 2 Aug. 15, 1977 Board Meeting 5. Report on Rental House Arrangement (continued) ,.. past several years has added improvements. Michael Connell , the present tenant, has added a fireplace and carpeting. John Craig, the former tenant, paid $60.00 per month plus utilities. The unit has one bedroom and bath upstairs and one bedroom and storage facilities downstairs. With the exception of the water heater, all appliances have been provided by the tenant. The property is poorly insulated and it is questionable that the electricity installed for heating would be sufficient. The tenants primarily use the fireplace to heat the. house. To make it more presentable, the house would need more adequate insulation and painting. Michael Connell plans on vacating fairly soon as he has purchased a home of his own and Paul Rose has asked to become the next tenant. - 6. Confirmation of Interest in District Parcel on Highway 267 I discussed the possibility of leasing a small portion of this parcel , approximately 5000 square feet, to Herb Crenshaw of KTRT. They would be interested in a long term lease in order to build a radio studio. He would like to know the price per month to lease the land for a suitable length of time (ten to twenty years) and the assessment value of the property as he would have to pay Nevada County occupancy tax on the building. We have discussed the possibility of a ten to twenty year lease with the option to renew. At this time, the District would renegotiate the period of time and rate. 7. Report re: Whether District Lands Should Be Posted Although I haven't as yet received a legal opinion, I feel it would be in the best interests of the District to post certain properties for trespassers. Specifically, I am thinking of our equipment yard, well and spring complexes , and substations. 8. Van Wetter Matter:- Report re Amount of Water Fees Paid by Adjacent Properties The bookkeeper has researched the Van Wetter matter and come up with the following: From the minutes of the board meeting on July 18, 1972 I quote "Mr. Van Wetter appeared before the Board and his portion of hospital line was discussed. He said that his fire insurance rating had not changed since the new line had been added and he could not see that he had profited from it at all . He said that at the present time he could not afford to pay $4,650 to. get water to his property. Manager's Report page 3 Aug. 15, 1977 Board Meeting 8. Van Wetter Matter (continued) The Board discussed what his fair share should be. Finally a minute order to the manager was proposed by Nelson Stone, it read: for the Van Wetter property, where as the original figure to be paid by Mr. Van Wetter was $4,650, after considerable discussion by the Board, it has been agreed and concurred with by Mr. Van Wetter that the final proposal is instead of $4,650, will be approximately $3,000. 1/3 to be paid in 1972, 1/3 to be paid in 1973 and 1/3 to be paid in 1974. This $3,000 includes Mr. Van Wetter's share in the extension of the 10" Line and $75.00 per unit for source and storage. The water connection fee of $250 for two inch meter will be additional to the $3,000. The manager said that he could assure Mr. Van Wetter that he would get his water as soon as possible. Mr. Van has paid $1 ,500 of the- $3,000- he- originally agreed to pay. The balance is $1 ,500 plus interest since May 10, 1974. As far as I can determine, neither the library, medical center or hospital have paid anything towards construction of this line. 9. Report on Sales of Surplus Materials--Request for Extension of Time The advertising has not yet appeared on the sales of our materials and therefore the manager would like a two month extension on this item. t f RESOLUTION NO. 77_/ of TRUCKEE-DONNER PUBLIC UTILITY DISTRICT CALLING FOR AN ELECTION TO FILL THE VACANCY ON THE BOARD OF DIRECTORS WHEREAS, Director John Craig resigned from the Board of Directors of the Truckee-Donner Public Utility District by an oral declaration and written memorandum effective June 30, 1977; and WHEREAS, the District has advertised its intentions to interview persons interested in being appointed to fill the vacancy created by said resignation, and no applications were received; and WHEREAS, the term of the vacant Director-at-Large position expires on the last Friday in November, 1977, and the next available election date to call a special election would coincide with the date of the General District Election to be held on November 8, 1977; NOW, THEREFORE, BE IT RESOLVED BY THE TRUCKEE- DONNER PUBLIC UTILITY DISTRICT as follows: 1) That it is in the public interest to allow the seat to remain vacant until filled at a District Election. 2) That the remaining members of the Board of Directors do hereby waive the appointment provisions contained in Section 1780 of the Government Code. 3) That this seat shall be filled at the General District Election to be held on November 8 , 1977, at which time the seat will be filled for a full four (4) year Y term. #' 4) That the Clerk shall cause a certified copy of this Resolution to be sent to the Nevada County Clerk. Passed and adopted by the TRUCKEE-DONNER PUBLIC UTILITY DISTRICT, by its Board of Directors, at a meeting held within the District on the 15th day of August, 1977, by the following roll call vote: AYES: �-��b c- . a o s s NOES: , ABSENT: TRUCKEE-DONNER PUBLIC UTILITY DISTRICT ATTEST: � � By: h/ Law Offices of PAT SUIT , President Steven E. 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PU >1 ri U .>~ r W -r-I Q) ?r H r I E 4 4 U +- H 0 r-I x )a 4-) 0 a w .. •. z can x E-1 •ri rd a U)r-f U +► rd r i E1 4J t1) to W fs7 f U) r-i.l W d (a D U)r-I 04 U] U) W W U) Ei 14) W 04)-I a 4 N H rd rA p N A ro � O F:4 Ei 0 o� ; Ow 3d ( w Q�.<, r - - •L,i'� Vic.. .� ,.,�`,*. .:- ` PACIFIC HOLDINGS WATERGATE TOWER, SUITE 940 1900 POWELL STREET, EMERYVILLE, CALIFORNIA 94608 • (415) 547.3006 August 4, 1977 ; 8�r5/773 Mr. Milt Seymour n Truckee-Donner Public Utility District P. 0. Box 309 Truckee, CA 95734 Dear Mr. Seymour:- . We enclose copy of our letter regarding installation of meters, which was sent to all of our tenants at Donner Center in Truckee, CA. A list of all the tenants (names" and addresses) is also enclosed for your information. There is a possibility that we will have a new tenant , moving in shortly and if this comes to pass we will send along that information promptly. Thank you for your assistance. Se rely, Richard G. Burge RGB/r enclosures x ! y REPRESENTING:DONNER CENTER • CARNELIAN BAY • DUBLIN PROPERTIES • LINFIELD PROPERTIES PLAZA PROPERTIES • PLEASANTON PROPERTIES • SOUTH SHORE PROPERTIES •WELLS AVE-ASSOC.(REND) TONOPAH PROPERTIES(TAHOE CITY) • PETALUMA PROPERTIES • PALO ALTO PROPERTIES �:: (:re - - �^,-. ..c�:, .r•;s�Cam. �,:.:,;..r�,.. o.s.,�sri..s _. :�a.`.,-...�.:a��,::.ama•.5:as.s:c:v:— -..MG-a—' — '.';c,a'y�;" :y, PACIFIC HOLDINGS, WATERGATE TOWER, SUITE 940 1900 POWELL'STREET, EMERYVILLE, CALIFORNIA 94608 (415) 547.3006 7 August 4, 197 Y SUBJECT: DONNER CENTER ELECTRICAL SERVICE For some time we have been exploring ways .of providing separate meters for each unit. Recently, the Truckee-Donner Public Utility District has implemented a rule change, which now allows us from an economic viewpoint to make the installa- r tion. Ken Weakley of Mountain Electric will be the electrical contractor, and Barbara Teare wi11 handle the coordination at the Center. She will advise you before the system is changed over, so you will have time to schedule around the short time period when the power is off. We expect* the job to be completed in. • about 4 to 5 weeks. The new manager of the Truckee-Donner Public Utility District, Mr. Milt Seymour, has been most .helpful , and has advised that the Public Utility District has a one time charge of $25.00 for setting up each individual account. As these are business accounts, there may or may not be a deposit required, depending on the Public Utility District criteria. However, both of these items are the responsi- bility of each tenant, and each tenant will be responsible for following up with the Public Utility District to make sure his or her application has been. processed. We are advising the Public Utility District of the name and address of each tenant by forwarding individual copies of this letter to them. Donner Center is providing the conversion, and is. purchasing the meters for each unit. This conversion will permit each tenant to keep a careful eye on the electric use, and hopefully will aid in the energy conservation Thank you for your cooperation:' el,• _ Si } �q " Richard G: Burg 2 r x RGB/r f . REPRESENTING:DONNER CENTER CARNELIAN BAY • DUBLIN PROPERTIES • LINFIELD PROPERTIES, PLAZA PROPERTIES • PLEASANTON PROPERTIES • SOUTH SHORE PROPERTIES •.WELLt AVE-ASSOC-(REND) TONOPAH PROPERTIES(TAHOE CITY) • PETALUMA PROPERTIES PALO ALTO PROPERTIES x >Y NI l ` F STATE OF CALIFORNIA STATE WATER RESOURCES CONTROL BOARD ALIT 1 D5 1977 Division of Water Rights 2125 Nineteenth Street 7r,UC CEE 0 "hE P.U.D.. Sacramento, California 95818 L'v In the Matter of Permits 679, 13525, 15582,) 15581 , 12049 ) NOTICE OF HEARING } Issued on Applications 1379, 17139, 17149, ) 17235, 18414 ) } Source: Lake Tahoe, NORTH TAHOE PUBLIC UTILITY DISTRICT ) Watson Creek and Dollar Creek Permittee ) County: Placer PYRAMID LAKE PAIUTE TRIBE ) Protestants ) NOTICE IS HEREBY GIVEN that a hearing will be held on Thursday, August 25, 1977 at 10 a.m. in the North Tahoe High School Auditorium at 2945 Polaris Drive, . Tahoe City, California 95730. The hearing will be continued on Friday, August 26, if necessary. The time allowed to complete construction work and to complete application of the water to the proposed use pursuant to Permits 679, 13525, 15582, 15581 , and 12049 has expired. Permittee has requested extensions of time. The hearing will be held to determine whether extensions of time should be granted, licenses should be issued for the amount of water placed to beneficial use under the terms of the permits, or the permits should be revoked in accordance with Water Code Section 1410, which provides that the Board shall revoke permits after hearing, if the projects are not completed as contemplated in the permits. The hearing will afford an opportunity for interested persons to present their views regarding the further development and use of the available water supply in the Lake Tahoe and Truckee River Basins in California. Full discussion of all issues related to a determination of the public interest in increased use of water will be accepted This hearing will afford the permittee, protestants, and others interested an opportunity to present relevant oral testimony and written evidence, maps, charts, and other material which will respond to all the issues described in the Scope of Hearing in the attached Staff Summary. Permittee should be prepared to show quantity, purpose and season to which r^ water has been placed to beneficial use, what progress has been made toward completion of the projects, and the reasons they have not been completed. 3 ,.- All parties should be prepared to present their recommendations in regard to conditions and limitations, if any, under which the Board should grant the time extensions. Because of the unique character of the Tahoe-Truckee Basin and the relationships between California and Nevada water uses including Indian claims, the Board will consider: (1) Licensing water under existing permits for the amount that is now beneficially used. (2) The effects on the proposed allocation within the Tahoe and Truckee Basins of water. use by holders of riparian rights and overlying owners with rights to extract groundwater. (It is expected that ultimate allocations between California and Nevada will include water used under riparian and overlying rights as well as appropriative rights. ) (3) Conditions and limitations, if any, to accompany any extension, should any be granted, with attention paid to: (a) Conservation practices to minimize wastewater exports from the basin and minimize uses within the basin, (b) available wastewater treatment capacity, (c) water quality within the Lake Tahoe Basin and outside such basin; and (d) other environmental factors, including requirements under CEQA. References relative to these issues include Tahoe Regional Planning Agency's General Plan, California Tahoe Regional Planning Agency's "Regional Plan" and "Land Use Ordinance" , U. S. Environmental Protection Agency's "Final Environmental Impact Statement" (regarding the wastewater facilities plan for North Lake Tahoe- Truckee River Basin, F-EPA-24055-CA) , and the "Water Quality Control Plan, North Lahontan, Basin 6A". Special attention is directed to the enclosed copy of information concerning appearance at water right hearings. Also enclosed are a copy of the staff summary for the hearing and a pamphlet containing information as to the procedure to be followed by the Board in conducting the hearing. R. L. Rosenberger, ief Division of Water Rights Enclosures Dated: AUGUST 111971 Sacramento, California -2- STATE OF CALIFORNIA—THE RESOURCES AGENCY EDMUND G. BROWN JR., Gu.e•nor STATE WATER RESOURCES CONTROL BOARD ,,— DIVISION OF WATER RIGHTS 2125 19TH STREET SACRAMENTO, CALIFORNIA 95818 916J322-3736 INFORMATION CONCERNING APPEARANCES All persons intending to participate should submit to the Board in writing the name of each witness who will testify for them, together with a statement of the qualifications of each expert witness, the subject of the proposed testimony, and the estimated time required by the witness to present his direct testimony. Such information shall be filed with the Board on the date and at the place of the hearing by 9:30 a.m. In addition, six copies of proposed exhibits shall also be filed with the Board in a similar manner. STATE OF CALIFORNIA STATE WATER RESOURCES CONTROL BOARD DIVISION OF WATER RIGHTS STAFF SUMMARY FOR HEARING PERMITS 679, 13525, 15582, 15581 , AND 12049 (APPLICATIONS 1379, 17139, 17149, 17235, AND 18414) Permittee: North Tahoe Public Utility District (NTPUD) County: _ Placer Substance of Permit 679 (A 1379) Date Application filed: July 31 , 1919 Date permit issued: January 15, 1920 Source: Watson Creek Tributary to: Lake Tahoe Quantity: 0.67 cfs (280 afa) Season: January 1 to December 31 Purposes: Municipal and Domestic Point of diversion: NW4 of SE4, Section 21 , T16N, R17E, MDB&M*. Place of use: 76 acres within NTPUD in Section 22, T16N, R17E Number of previous extensions: 14 Present development schedule: Complete construction and application of this water--to the proposed-use, December 1 , 1975. Substance of Permit 13525 (A 17139) Date application filed: June 18, 1956 Date permit issued: April 24, 1962 Source: Lake Tahoe Tributary to: Truckee River Quantity: 2.5 cfs (600 afa) Season: June 1 to September 30 Purpose: Municipal Point of diversion: SE-14 of NE-I,, Section 13, T16N, R17E Place of use: Within NTPUD Sections 12, 13, and 14, T16N, R17E, Sections 19, 30, T16N, R18E Number of previous extensions: 2 Present development schedule: Complete construction and application of this water to the proposed use by December 1 , 1975. Substance of Permit 15582 (A 17149) Date application filed June 22, 1956 Date permit issued: February 15, 1968 Source: Lake Tahoe Tributary to: Truckee River Quantity: 3.0 cfs (1 ,900 afa**) Season: January 1 - December 31 * All references to Township and Range indicate Mount Diablo Base and MM ridian. ** The total under Permits 15582, 15581 , and Brockway Water Company righ�s shall not exceed 1 ,900 afa. Purposes: Municipal , Domestic, Recreational and Fire Protection Point of diversion: SW-14 of SW4, Section 19, T16N, R18E Place of Use: Section 18, 19, 30, T16N, R18E; Sections 11 , 12, 13, 14, T16N, R17E Number of previous extensions: 1 Present development schedule: Complete construction and application of water to the proposed use by December 1 , 1975. Substance of Permit 15581 (A 17235) Date application filed: August 13, 1956 Date permit issued: February 15, 1968 Source: Lake Tahoe Tributary to: Truckee River Quantity: 3 cfs (1 ,900 afa**) Season: January 1 - December 31 Purposes: Municipal , Domestic, Recreational , and Fire Protection. Point of diversion: SW4 of SW4, Section 19, T16N, R18E Place of use: Within NTPUD in Sections 18, 19, and 30, T16N, R18E Sections 11 , 12, 13, and 14, T16N, R17E Number of previous extensions: 1 Present development schedule: Complete construction and application of water to the proposed use by December 1 , 1975. Substance of Permit 12049 (A 18414) Date application filed: November 17, 1958 Date permit issued: November 12, 1959 Source: Dollar Creek Tributary to: Lake Tahoe Quantity: 0.12 cfs (49.7 afa) Season: January 1 - December 31 Purpose : Domestic Points of diversion: SE4 of SE-I,, Section 29, T16N, R17E; SW', of SE4 of Section 28, T16N, R17E. Place of use: SE-I, of SW-I, of Section 28, T16N, R17E; SW4 of SE4 of Section 28, T16N, R17E Number of previous extensions: 3 Present development schedule: Complete construction and application of water to proposed use by December 1 , 1975. Protestants Name Basis of Protest Extent of Use or Acreage Pyramid Lake Reservation Principle 385,000 afa for fishery Paiute Tribe November 29, 1859 30,087 afa for farming '� ** The total under Permits 15582, 15581 , and Brockway Water Company rights shall not exceed 1 ,900 afa. -2- Summary of Record North Tahoe Public Utility District has two water right licenses, five permits , and two protested, .unapproved applications. The source for the two licenses is Griff Creek tributary to Lake Tahoe. The source for three of the permits is Lake Tahoe. Dollar Creek and Watson Creek, tributary to Lake Tahoe, are the sources for the other two permits. The source for the two applications is also Lake Tahoe. The number of field. inspections and reports contained in the record are too numerous to present individually in this summary. However, they are a part of the record for consideration as a part of the hearing process Following twelve years of negotiations among the Commissioners of the California- Nevada Interstate Compact Commission, the Commissioners approved an interstate compact regarding the Tahoe and Truckee Basins in 1968. Both states approved the compact by 1971 . However, Congress has not ratified it primarily because of objections from the Paiute Indians who assert rights to the use of waters in these basins. A major provision of the interstate compact is that the total gross annual diversion in the Tahoe Basin in California under all rights , including both surface and groundwater shall not exceed 23,000 acre-feet. The compact-provides for a possible increase -in use in the Tahoe Basin above the 23,000 annual acre-feet gross diversion through replacement of such additional use by exchange from Stampede Reservoir, the Truckee River, or Carson River. Presently, the U. S. Department of Justice, on behalf of the Paiute Indian ,... Tribe at Pyramid Lake is suing in Nevada to secure water rights which will allow recreational development at Pyramid -Lake. The Board has also received informa- tion to the effect that the Department may eventually file suit against California users of water in the Lake Tahoe and Lower Truckee River Basins. By special notices to water users in the Lake Tahoe and Truckee River Basins dated March 24, 1975, and July 15, 1976, the Board has cautioned water users against increasing the use of water in the Basin. Indications are that some permittees may be disregarding the Board's notices. Scope of Hearing The decision of the State Water Resources Control Board as to whether or not the petitions should be approved must be based upon the record developed at the hearing. Permittee and protestants and interested parties should submit infor- mation responsive to the issues raised by the petitions and protest thereto insofar as they relate to matters within the jurisdiction of the Board. Particular consideration should be given to the following items: 1 . Whether the finding that was made with respect to the availability of unappropriated water at the time the permits were issued is still valid. 2. Anticipated injury, if any, to the protestants and other lawful users, should the petitions be approved, with specific data substantiating such injury. -3- 3. Intent and ability of permittee to proceed with due diligence including financing plans to construct any necessary additional works and to place water to beneficial use, should the extensions be approved. 4. Whether approval of the petitions will constitute the initiation of a new water right. 5• Compatibility of the proposed use of water with the Water Quality Control Plan for the basin involved. 6. Alternatives which have been considered for providing the necessary water for the area to be served, including cost considerations. 7. Opportunities available for reuse or reclamation of the water appropriated. 8. Whether the proposed extensions are in the public interest. 9. Details of type of uses and the area to be served. 10. Should the Board license water under existing permits for the amount that is now beneficially used? 11. Conditions and limitations under which the State Board should grant time extensions, if any, to permittees who have filed petitions for extension of time. 12. The effects on the proposed allocation within the Tahoe and Truckee Basins of water use by holders of riparian rights and overlying owners with rights to extract groundwater. (The Tahoe and Truckee Basins are inter- state basins and it is expected that ultimate allocations between California and Nevada will include water used under riparian and overlying rights as well as appropriative rights. ) 13. How should the Board encourage the conservation of water and the reduction _ of per capita use of water with the terms and conditions of water right permits? 14. What impact would the approval by the Board of the time extensions have on the following: a. available wastewater treatment capacity, b. water quality within the Lake Tahoe Basin and outside such basin, and C. other environmental factors. 15. What measures are feasible to mitigate any adverse environmental effects which may occur if time extensions are granted? Documents to be Offered into Evidence The following public documents on file -with the State Water Resources Control Board contain information which may be relevant to the matters to be heard and will be offered into evidence at the hearing by reference: 1 . Files of Applications 753, 1379, 6983, 12574, 17139, 17149, 17235, 18414, 23727, and 24257 and Statements of Water Diversion and Use S4639 and S4714. 2. "Water Quality Control Plan, North Lahonton Basin (6A)" approved by the State Water Resources Control Board, July 17, 1975, as amended. 3. United States Department of the Interior, Geological Survey, Water Resources Division, Water Resources Data for California, Volume 3, Southern Central Valley Basins and the Great Basin from Walker River to Truckee River" and all appropriate predecessor publications. 4. United States Department of the Interior, Geological Survey, Water Resources Division, "Water Resources Data for Nevada" , and all applicable predecessor publications. 5. Department of Water Resources Bulletin No. 130, "Hydrologic Data" , all applicable volumes and appendices for the period ofpublished record. 6. United States Department of Commerce, National Oceanic and Atmospheric Administration, Climatological- Data for California, all pertinent volumes, . r^ for the period of published record. 7. Topographic maps published by the United States Geological Survey covering the area under consideration. 8. Tahoe Regional Planning Agency, "General Plan, 1971" , as amended. 9. California Tahoe Regional Planning Agency-, "Regional Plan" (1975) , as amended. .k 10. California Tahoe Regional Planning Agency, "Land Use Ordinance" (1975) , as amended. 11 . Environmental Protection Agency, "Final EIS Wastewater Treatment and Conveyance System, North Lake Tahoe-Truckee River Basin (TTSA)" F-EPA-24055- CA, 1974. 12. -United States Department of Interior,"Draft Environmental Statement of the he Lower Truckee-Lower Carson River Basins" Proposed Operating Criteria for t (1977) . 13. United States Environmental Protection-Agency, "The Lake Tahoe Study", -5- RESOLUTION NO. 77 L Z. of TRUCKEE-DONNER PUBLIC UTILITY DISTRICT RETAINING A TELEMETRY CONSULTANT WHEREAS, the Manager has recommended that the Board of Directors hire a telemetry consultant to evaluate the District' s telemetry system prior to the expiration of the warranty period; and WHEREAS, William Avery has been found to possess the necessary skills and equipment required for this project; and WHEREAS, it has been determined to be in the best interests of the District to hire a special consultant to eval- uate the telemetry system while said system is covered by the warranty from Dart Industries. NOW, THEREFORE, BE IT RESOLVED by the TRUCKEE- DONNER PUBLIC UTILITY DISTRICT as follows: '^ 1) That William Avery be hired on a consulting basis to evaluate the District' s telemetry system and recommend changes and repairs to Dart Industries prior to the expiration of the warranty period. 2) That William Avery shall prepare a report of his findings and make the same available to the Manager as soon as possible. 3) That William Avery shall be compensated for his professional services at the rate of Twenty-five and No/100 ($25. 00) Dollars per hour. Passed and adopted by the TRUCKEE-DONNER PUBLIC UTILITY DISTRICT, by its Board of Directors, at a meeting held within the District on the 15th day of August, 1977, by the follow- ing roll call vote: AYES: NOES: , ABSENT: TRUCKEE-DONNER PUBLIC UTILITY DISTRICT By: ATTEST: PAT SUT ON, President Law Offices of C / Steven E. Grumer Clerk Thereof Altu 11 1 77 MEYGRA1,QUM TO tie Ut"o.er Dia_,ectors -�.ie 1,'iana;-.er FRG'M i Pat Sutton re A- ' iA "ieatheri :at'Lon LoF_n Pro;�ram Since no Minutes �,,,,ere 1'.'e-ot of the ioard 'eorl-,shop held on A u,-us t 3 , 1977 ,'vith Jerry Glor of 'L-II)e Far,-,,.crs iiorll'le Administra- tion, subc'.itting this summary from my notes to be attached for the record to t,-,(, 1,'Ieetinp, 1"lotice & Af,-enda in the I'Anute Book. This new Wectherization ProJram is o, joint T)roject of the Rural Electrification Administration and the Farmers Nome Administration to encoura.�re the more efficient use of energy. Under it, rural electric cooperatives , the T.D.P.U.D. , and other REA borrowers can set Lip a loan T,ro,-rpT,,, for home owners for the purpose of .-installing insulation, siding, caulking, weatherstripping, attic fans , and other r,Tea,therization measures , which could include storm windows , etc . If the Truckee Donner Public Utility D'is,­('rict decides to partici- pate in this pro,p lrar, , an a,�reerient i,%rith Farr-:ers home Administration would be necessary, and the rrodram �,!ould have to ri)eet FmhA require- ments . The Di trict would advance the rr.,oney for each weatherization job authorized under its Program , and the F,,,,,HA would reim'ou,­)e the District for the actual job cost 30 da-,Ts after receiving certifica- tion that the District had -paid the contractor. Th.,e District would collect the individual loan payments each r,-!onth from the borrowers and forward them to the Friu, A. Tile costs of settin�r, up and administer- ing the loan pror,ram at the local level would be borne by the District . The maximum loan available under this is :�l , 500 at 8;-,u, interest for a 5 year -period , and. would be available to owner-occupants of homes whose adjusted �7ross incooce does not exceed $15,600 annually. In order to be eligible for a FmHA lo--.n, the a.rpl.icant r.'.ust meet the FmHA criteria , including the maximum adjusted cross income and the inability to oualify for the loan from Private sources . A s-oocial loan Dro,,rram for homeowners over the a.,­e of 62 ,years is available directly through Fm,',TIA, and the District would assist those Parties in nakin7 contact with the Fm11A office in Auburn. (This s-necial program for persons over 62 years and the regular Farmers Tome loan Program in rural areas is available whether or not the District sets up its own REA-FmHA Weatherization Loan Program. ) f ror,, Fat "-l' utton re : 1-­_"A-F,,r.HA 4- --e 2 1101, If 1-1-,e t;-p L 0 e r-o n t 1,1 y loan ,a,...- o u 1 XrobP1,l,y c, collected rr c) conveniently _L U on the borrowe -.- bills A 1,-.�n ol- ',]. , 0'0 e-j fob` 5 years (ill, ---e-.: i.)ire ,i T?,ay(_ent o­ i . T(,e security -nor t1--,,, loan is r 0! 1 S)C) note wilic.". t; E, individ- ual borrower _­eF-P,,)ns_J 'LJe for his to-.YI, :;-nd t _­e pro-,pert- to be improved is not involved. If - I, der a u on i- can pay- mients , the Di trice Iould be obliged to makeC an effort to collect the payments for cp, year' s tire , then F'nil"IA would, ta,--e over the collection The wc)ul(l no-t be li.2- ble for loans in default . (An unl)sually 1hic'-h percent,' -c of default- , Low ever, would probably reSL),-I.',, in a. reelialh,ialicon of Di:� trictls pro;-rF�m by the F mHA - ) If tl'ie District decides to :---et involved in this T-,ro_rx=m , it will be responsible for settin,-, up all aspects of the ir ' including publicity and -to notify custoi,)er�-, of -the pro,-rara, ta'King applications , determining eli.�-ib_; _].ity, -proces- �.:..,in- the loan applica- tions , settinF- s nd7rcl,.s lo-c and worRuinansh-LD , certifjil-g; t U a list of conturc?ctors , insnectin,F -v7ork,, the contractor, pro- ,.,idj_n«' certific-i-tio.- to F,-;-,i-iA in order to obtair, reimburse:.-ent , heepirl%- rocorlc and, boo"s on the to re -rT0P-rim, billin- the curztomer Rnd receivin,., the ­.onthly Pay"').('11ts to 1q,:1iiA, e t C 0 1 jC_ 4-C�,, �1,;q J_ Tv'r. ] or ind T"-1 c �_t of would be ­,cnt to r I the District soon. _,Te said that he 'i;o u 1 d ecomrrend to Fli�"A mat sever-al a.-et-1cl-es and co-oPr-, in thiS. P-rt of the t,-,t e, in(' icate u; -1 r_ be set interest in +11-e _.'eIe-rization Loan that -j 4 o shop-C) up or-, the details of -q,,dmdnir:;,te-rin,,7, the project. The Eoard Works`-ion on Au-u:.;t 3 was attended by F,nd Directors K-arl Kuttel and Jitm 1P,:aaE-,s and myself. Submitted by T UT T U 1 i President of the borird copy to Steve Grumer, Counsel Pool' Final: 7/27/77 WJML:PLMcE:jt RESOLUTION NO. -7 72 ,.- A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF EMERGENCY DROUGHT RELIEF PROMISSORY NOTES OF 1977;PRESCRIBING THE AMOUNT, DATE, FORM, AND MATURITIES THEREOF;FIXING THE RATE OF INTEREST THEREON;AND PROVIDING FOR A PLEDGE OF REVENUES TO PAY THE PRINCIPAL THEREOF AND INTEREST THEREON TRUCKEE — DONNER PUBLIC UTILITY DISTRICT RESOLVED, by the Board of Directors of the Truckee — Donner Public Utility District, Nevada County, California, as follows: WHEREAS, this Agency is authorized to acquire, construct, own, or operate an Enterprise comprised of a system, plant, works, and facilities used for, or useful for, the purpose of obtaining, conserving, treating, and supplying water for domestic, irrigation, sanitation, industrial, fire pro- tection, recreation, or other public or private uses as set forth in the Revenue Bond Law of 1941, Chapter 6, Division 2, Title 5 (commencing at Section 54300) of the Government Code of the State of California, and as more particularly described herein; WHEREAS, said Agency is authorized pursuant to Article 9 of said Revenue Bond Law (com- mencing at Section 54610) to accept contributions or loans from and to enter into contracts with the United States of America or a federal department or agency for the financing of actions pre- liminary to the construction and of the construction of an Enterprise pursuant to federal legislation under which aid, assistance, and cooperation may be furnished for such purposes by the United States;and WHEREAS, the United States of America, acting through the Farmers Home Administration, U.S. Department of Agriculture, intends to make formal offer to this Agency pursuant to which it proposes to provide a loan to this Agency in the principal amount of $260,000 for the financing of a certain Project, said loan to be evidenced by a fully registered Promissory Note secured as provided in said Revenue Bond Law of 1941; NOW, THEREFORE, IT IS RESOLVED, DETERMINED, and ORDERED as follows: 1. All acts, conditions, and things required by law to exist, happen, and be performed precedent to and in the issuance of notes have existed,happened, and been performed in due time, form, and manner as required by law, and this Agency is now authorized pursuant to each and every requirement of law to enter into a loan agreement and execute evidences of a special obliga- tion in the manner and form as in this Resolution provided. 2. As used herein, the terms herein have the following meanings: (a) Additional Notes mean notes or other obligations hereafter issued or incurred payable from the Revenues and constituting a lien thereon exclusive of the Notes; (b) Agency means the Truckee — Donner Public Utility District; (c) Noteholder or Holder of Notes means the holder of a coupon note, registrable as to principal only, or the holder of a fully registered Note; (d) Notes mean the issue of promissory notes herein authorized to be issued; r i (e) Charges mean fees, tolls, rates, and rentals prescribed by the Legislative Body of the Agency for the services, facilities, and water of the Enterprise; (f) Enterprise means the Agency's system, works and facilities used for or useful for the purpose of obtaining, treating and supplying water for domestic use, irrigation, sanita- tion, industrial use, fire protection, recreation, or any other public or private uses of the District and its inhabitants; (g) Finance Officer, Treasurer, or Auditor means the officers designated by law to handle the funds of the Agency; `^ (h) Fiscal Year means July 1 to June 30; (i) Government means the United Stites of America, acting through. the Farmers Home Administration, U.S. Department o Agriculture; 0) Legislative Body means the Board of Directors which is the governing body of the Agency; (k) Indenture means this Resolution Iu y adopted by the Legislative Body, providing for the issuance of Notes, fixing the form thereof, and providing covenants for their protection, as now or hereafter amended, together with the Ordinance,if any, authorizing the execution of the contract for an Emergency Drought Loan between the Agency and the Government; (1) Net Revenues mean annual gross revenues of the Enterprise after deducting all sums expended therefrom for the annual management, operation, maintenance, and repair thereof, including all incidental costs, fees and expenses properly chargeable thereto; (m)Project means the additions, extensions, and improvements to the Enterprise, part of the cost of acquiring, constructing, improving, and financing of which is to be paid from the proceeds of the Notes; (n) Revenues mean all charges received for, and all other income and receipts derived from, the operation of the Enterprise, including revenues deposited in any funds to secure or to provide for the payment of the Notes, and interest received on any invested moneys of the Enterprise; (o) Secretary means the person elected or appointed as the Clerk or Secretary of the Agency and of its Legislative Body. 3. A Note of the Agency shall be issued to pay the cost of the acquisition, construction, and �^ completion of the Project and to evidence the loan of the Government therefor, and said Note is hereby sold to the Government at the par value thereof, in accordance with its offer therefor. 4. The Note shall be $260,000 in aggregate principal amount, shall be known as "Emergency Drought Relief Promissory Note of 1977" ("the Note"), and shall be paid in not to exceed 39 annual equal amortized installments of principal and interest commencing on the first day of September, 1979, and on the last day of September thereafter until paid. 5. The Notes shall be issued in the form of a single fully registered Note without coupons. The Notes shall be dated the date of delivery to and payment therefor by the Government; provided, however, that individual fully registered Notes issued upon exchanges and transfers of fully registered Notes shall be dated so that no gain or loss of interest shall result from such exchange or transfer. The aggregate principal amount of the Notes shall not exceed the aggregate payments by the Government for the Notes, as said payments and the dates thereof are endorsed on the Note by the Treasurer, and a principal amount of said Notes of the longest maturity equivalent to the difference between such aggregate principal amount and such aggregate payments shall be deemed unissued. Interest on said fully registered Note shall be determined on the Government's aggregate of payments for said Note from the respective dates of payment as endorsed on said Note by the Treasurer. In such event, said fully registered Note shall be paid in not to exceed 39 annual equal amortized installments of principal and interest, the last payment being adjusted to represent the amount required to pay the last installment of principal and interest. Fully registered Notes shall be numbered as the Treasurer shall determine. 6. The Notes shall bear interest until paid at the rate of five percent (5%) per annum, the first years interest to be payable on the first day of September, 1978 and thereafter annually on the first day of September in each year to the date of final maturity, together with such principal amount as is required under Section 5 hereof. 2 If, on presentation at any payment date, payment of the installments or installments of princi- pal and interest on said Notes is not made in full, the installment shall continue to bear interest at the rate stated in the Note untii paid in full. 7. The Notes may be called prior to final maturity and redeemed from funds of the Agency, in whole or in part, at the option of the Agency on any payment date prior to said final maturity i— at the remaining principal amount thereof, or so much thereof as deemed appropriate by the Agency, and accrued interest thereon to the date of redemption. Upon redemption of a Note in part only, there shall be executed and delivered a new Note or Notes of denominations of $100 or more equal in aggregate principal amount to the unredeemed portion of the Note surrendered and of the same interest rate or rates and some maturity or maturities. The registered owner of any fully registered Note may, in lieu of surrendering such Note for a new Note, endorse on the reverse of such Note a notation of such partial redemption, in such form as may be satisfactory to the Treasurer and under such conditions as the Treasurer may approve. So long as the loan is represented by a single fully registered Note held by the Government, such Note is subject to call or redemption at the option of the Agency, in whole or in part, at any time at the principal amount thereof, or so much thereof as deemed appropriate by the Agency, and accrued interest to the date of redemption. In such event, after payment of the interest to the payment date, the amount prepaid shall be applied to the principal last to become due and shall not affect the obligation to pay the remaining installments when scheduled until the remainder of the obligation shall have been paid. If, after accomplishment of the objects and purposes for which the Notes have been authorized, there remain of the proceeds thereof, or any grants received from the Government, the State of California, or any agency thereof, for the accomplishment thereof, moneys sufficient to call and redeem one or more of the Notes or part of a single fully registered Note, such moneys, shall be used to call and redeem Notes in inverse numerical order or, as to a single fully registered Note, the principal last to become due, at the remaining principal amount thereof and accrued interest thereon to the date of redemption. 8. Notice of redemption shall be published once not less than thirty (30), nor more than ninety (90), days prior to the date fixed for redemption, such publication to be in a financial newspaper published in San Francisco and in a financial newspaper published in New York. Such notice shall also be mailed by registered or certified mail thirty (30) days prior thereto to the registered owner of any Note so called as shown on the records of the Agency. No such prior notice shall be required as to any Notes held by the Government. After the date fixed for such redemption, if the Agency shall have duly published and mailed notice of such redemption as herein provided, if required, and shall have provided funds available for the payment of principal and accrued interest on the Notes called for redemption, interest on the Notes called for redemption shall cease. 9. Notes called and redeemed in full pursuant hereto shall be surrendered upon payment in full of the principal thereof and interest thereon and shall be canceled and shall not be reissued. That portion of the principal paid upon any fully registered Note, redeemed in part only, shall be deemed canceled and no new Note shall be issued representing such canceled amount. 10. The form of the Notes shall be substantially as provided in Exhibit "II"hereto attached and incorporated herein by this reference. 11. Principal and interest on fully registered Notes shall be paid by the Treasurer by check, draft, or warrant mailed to the registered owner at its address as it appears on the register main- tained in the office of said Treasurer. 3 12. Any fully registered Note may, in accordance with its terms, be transferred upon the books required to be kept pursuant to the provisions of Section 14, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such fully registered Note for cancellation, accompanied by delivery of a written instrument of transfer in a form approved by the Treasurer, duly executed. Whenever any such Note shall be surrendered for transfer, the Agency shall execute and the Treasurer shall deliver a new fully registered Note or Notes, of the same interest rate or rates, and for a like aggregate principal amount. The Treasurer shall require the payment by the Note- holder requesting such transfer of any tax or other governmental charge required to be paid with respect to such transfer. No transfers of fully registered Notes shaii be required to be made during the fifteen (15) days next preceding each payment date. 13. Fully registered Notes may be exchanged at the office of the Treasurer for a like aggregate principal amount of fully registered Notes of other authorized denominations of the same interest rate. The Treasurer shall require the payment by the Noteholder requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange. No such exchange shall be required to be made during the fifteen (15) days next preceding each payment date. 14. There shall be kept by the Treasurer sufficient books for the registration and transfer of the Notes and, upon presentation for such purpose, the Treasurer shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said register, Notes as hereinbefore provided. 15. No transfer of a Note shall be valid unless made on said books at the request of the registered owner or by his duly authorized attorney and similarly noted on the Note. All transfers pursuant to this Section shall be made under such reasonable regulations as the Treasurer may prescribe and shall be without expense to the Holder of the Notes, except that any taxes or other governmental charges required to be paid with respect to the same shall be paid by the Noteholder requesting such transfer, as a condition precedent to the exercise of such privilege. 16. The President is hereby authorized and directed to sign, and the Secretary to countersign, the Notes, and the Treasurer shall sign the coupons appertaining thereto, if any, and the Secretary of the Agency is hereby authorized and directed, and the Secretary shall affix the seal of the Agency to the Notes. Such signings, countersigning, and sealing as herein provided shall be a sufficient and binding execution of the Notes by the Agency. If any officer whose signature or countersignature appears on the Notes ceases to be an officer before the delivery of the Notes to the purchaser, his signature or countersignature shall be as valid as if he had remained in office until the delivery of the Notes. All such signatures and countersignatures, excepting that of the Secretary on the Notes, may be printed, lithographed, engraved, or otherwise mechanically reproduced. 17. The proceeds received from the sale of the Notes (excluding accrued interest and premium, if any) shall be deposited by the Agency in a special account maintained by the Treasurer, which account shall be known as the "Emergency Drought Relief of 1977 Improvement Fund" ("the Improvement Fund"), which the Agency hereby covenants and agrees to maintain. All such proceeds received from the sale of Notes when deposited in the Improvement Fund shall be withdrawn therefrom only upon warrants, drafts, or checks of the Agency and,in accordance with payment authorization procedures of the Government, and subject to the right of the Government to require that appropriate officials of the Agency certify that there have been no 4 adverse developments which could prev:_.-.A completion of the project by April 30, 1978. Such proceeds shall be applied exclusively to the purposes and objects for which the Notes have been authorized. When said purposes and objects have been accomplished, all moneys remaining in the Improvement Fund shall be applied, subject hereto, to call and redemption of the Notes, except that any moneys so remaining may be used for needed extensions, enlargements, and improvements of the Project with the prior permission of the Government. �^ 18. The Agency, during the term of the Notes, will operate the Enterprise as a separate and distinct agency and will create and maintain a separate and distinct special fund and account for the Enterprise, into which all Revenues are; to be deposited, and from which all disbursements herein provided, relating to the Enterprise, are to be made during the term of the Notes. 19. The payment of the principal and interest of all of the Notes shall be secured equally and ratably by a lien on the Revenues of the Enterprise. The Revenues are hereby irrevocably pledged to the payment of the principal of and interest on the Notes. 20. All of the Notes shall be equally and ratably secured, without preference or priority by reason of number, date, or date of sale, execution, or delivery of the Notes, by said lien upon the Revenues. Said lien shall be prior and paramount to any and all other claims and obligations that have arisen or may arise or be incurred against the Revenues, except as herein expressly provided. 21. The Agency covenants that it will at all times fix, establish, and maintain rates and charges sufficient with other revenues received to produce Net Revenues equal to not less than 1.20 times the aggregate amount of the principal of and interest on the Notes which become due and payable within the next succeeding twelve months, including required reserves, and to otherwise comply with the terms and conditions hereof. 22. The Revenues shall constitute a trust fund for the security and payment of the Notes and, except as otherwise specifically authorized by this Indenture, shall not be used for any other purpose so long as any of the Notes or any interest thereon are outstanding and unpaid. Alp" 23. There is hereby created a special fund to be designated "Truckee — Donner Public Utility District Water Revenue Fund", herein called "Revenue Fund", which shall be maintained and operated by the Treasurer as a separate account of the Agency, distinct from all other funds of the Agency, into which shall be paid, on or before the first day of each month following the receipt thereof, the Revenues. So long as any of the Notes or any additional Notes authorized hereunder are outstanding or any interest thereon is unpaid, said fund shall be administered and disbursements shall be made therefrom in the manner and in the order progressively set forth in Sections 24, 25, 26, 27 and 28 hereof. 24. There shall be, and there is hereby provided, a fund to be kept by the Treasurer and be designated as the "Truckee — Donner Public Utility District Emergency Drought Relief Promis- sory Notes of 1977 Note Fund", hereinafter called "Note Fund". At least one month prior to the due date of any installment of principal and interest on the Notes, the Treasurer shall deposit from the Revenue Fund into the Note Fund such amounts as may be necessary for the payment thereof which have not theretofore been paid into said Fund. 25. There shall be, and there is hereby provided, a fund to be kept by the Treasurer and be designated as the "Truckee — Donner Public Utility District Emergency Drought Relief Promis- sory Notes of 1977 Reserve Fund", hereinafter called "Reserve Fund". (a) Commencing on the first day of July next following the completion of the Project, and on each first day of July thereafter for the next successive nine (9)years, the Treasurer shall deposit into the Reserve Fund a sum equal to one-tenth (1/10th) of the amount required to equal the average annual amount of principal and interest on the Notes to be paid during their term. 5 (b) Whenever any moneys are withdrawn from the. Reserve. Fund to pay installments of principal and interest on the Notes, the amount so withdrawn shall be restored from available surplus funds and, if none, by transfers from the Revenue Fund commencing on the next following first day of July and continuing annually for the next successive two years, at least one-third (1/3rd) of the amount necessary to restore therein the gross amount provided in Subdivision (a) of this Section. Money in the Reserve Fund shall be used solely for the purpose of payment of principal and interest on the Notes in the event the moneys in the Note Fund are insufficient therefor and for that purpose may be withdrawn and transferred to the Note Fund. The moneys in the Reserve Fund shall be transferred to the Note Fund at the time and for the purposes necessary to pay the last remaining installments of principal and interest on the Notes. Any balance thereafter shall be transferred to the Revenue Fund. 26. From the Revenue Fund, the Treasurer shall pay the necessary and reasonable expense of management, operation, maintenance, repair, and other expenses necessary to maintain and preserve the Enterprise. 27. The moneys remaining in the Revenue Func after the aforesaid transfers shall constitute surplus funds and may be used for any of the following purposes: (a) To pay the cost of unusual or extraordinary maintenance of or repairs to the Enterprise; (b) To improve the Enterprise; (c) To pay the principal of and interest on the Notes; (d) To pay the principal, interest, and premiums of Notes called prior to maturity; (e) To pay for Notes purchased in the open market at prices offered; (f) To pay the principal of and interest on general obligation bonds, revenue bonds, Additional Notes, and other evidences of indebtedness which have been or may be here- after issued by or on behalf of the Agency for water purposes; (g) For any other lawful purpose. No moneys shall be otherwise paid or transferred therefrom until and unless full compliance has been had with all of the provisions of this Indenture. 28. In the event that the balance in any fund is below its requirements, moneys from a fund of lower priority shall be transferred up to fill such deficiency in said Fund, and said higher fund shall have a first claim on the moneys of said lower fund for said purpose. 29. For the further protection and security of the Notes issued hereunto, it is covenanted and agreed to and with the Holders of the Notes from time to time, that the Agency will: (a) Commence the acquisition, construction, and completion of the Project and continue the same with all practical dispatch and in a sound and economical manner; (b) Operate the Enterprise in an efficient and economical manner and prescribe, revise, and collect such fees, tolls, rates, and other charges in connection therewith that the water, services, and facilities of the Enterprise may be furnished to its inhabitants and other users at the lowest possible cost consistent with sound economy and prudent management; (c) Operate, maintain, preserve, and keep the Enterprise and every part thereof in good repair, working order, and condition; (d) Preserve and protect the security of the Notes and the rights of the Holders thereof, and warrant and defend such rights against the claims and demands of all persons whomsoever; (e) Collect and hold in trust the Revenues and other funds pledged to the pay- ment of the Notes and apply such Revenues or other funds only as provided in this Indenture; (f) Pay and cause to be paid punctually the principal of the Notes and the interest thereon on the date or dates, at the place or places, and in the manner mentioned in the Notes and in the coupons, if any, thereto appertaining and in accordance with this Indenture. 6 (g) Pay and discharge any and all lawful claims for labor, materials, and supplies which, if unpaid, might by law become a lien or charge upon the Revenues of the Enter- prise, or any part of said Revenues, or any funds in the hands of the Treasurer prior or superior to the lien of the Notes or which might impair the security of the Notes to the end that the priority and secaray shall be fully preserved and protected; (h) Not mortgage or otherwise encumber, sell, lease, or dispose of the Enterprise or any part thereof, nor enter into any lease or agreement which would impair or impede the ,operation of the Enterprise or any part thereof necessary to secure adequate Revenues for the payment of the principal and interest of the Notes, or which otherwise would impair or impede the rights of the Holders of the Notes with respect to such Revenues or the operation of the Enterprise without provisions for the retirement of the Notes and when outstanding from the proceeds thereof;provided, however, that material and equipment worn out or not needed for the efficient and proper operation of the Enterprise may be sold without the consent of the Noteholders if the proceeds thereof are applied to the improvement or extension of the Enterprise or the retirement of the Notes; (i) Not permit any part of the Enterprise to be used or taken advantage of free of charge by any person, firm, or corporation, or by the State of California, or the United States of America, or by any public corporation, political subdivision, city, county, district, or agency, including the Agency; 0) Procure and keep in force insurance upon all buildings and structures of the Enterprise and the machinery and equipment therein, which are usually insured by entities operating like property, in good and responsible insurance companies. The amount of the insurance shall be such as may be required to adequately protect it and the Holders of the Notes from loss due to any such casualty, and, in the event of any such loss, the proceeds shall be used to repair or restore the Enterprise or for the payment of the Notes. In the event the proceeds are used to repair or restore, the Agency shall begin such repair or reconstruction promptly after such loss or damage shall occur and shall continue and properly complete the same as expeditiously as possible. The Agency shall cause to be paid out of the proceeds of such insurance, and from any other available funds, all costs and expenses in connection with such repair or reconstruction so that the same shall be completed and the Enterprise shall be free and clear of all liens and claims. If the proceeds received by reason of any such loss shall exceed the costs of such repair A,., or reconstruction, the excess shall be deposited by the Treasurer in the Revenue Fund. (k) If all or any part of the Enterprise shall be taken by eminent domain proceedings, the net proceeds realized by the Agency therefrom shall be deposited by the Treasurer in a special fund in trust and shall be applied and disbursed by the Treasurer subject to the following conditions: (1) If such proceeds are sufficient to provide for the payment of the entire amount of principal on all of the then outstanding parity lien Notes and Bonds of the Agency, so as to enable the Agency to retire all of such outstanding parity lien Notes and Bonds, either by call prior to maturity or by payment at maturity or partly by call prior to maturity and partly by payment at maturity, the Treasurer shall provide for the application of such moneys to such retirement and to the payment of such interest. The balance of such moneys, if any, shall be transferred to the Agency and shall be available for use by the Agency for any lawful purpose. (2) If such proceeds are insufficient to provide the moneys required for the purposes set forth in the foregoing subsection (1), the Legislative Body shall by resolution determine to apply such proceeds for one of the following purposes, subject to the conditions hereinafter in this subsection (2) set forth: (i) The Legislative Body may determine to apply such proceeds to the purchase or call of outstanding parity lien Notes and Bonds of the Agency. In that event, such proceeds shall be applied pro rata to the purchase or call of such outstanding Notes and Bonds of each issue in the proportion which the then outstanding principal amount of such issue bears to the aggregate principal amount of all such outstanding Notes and Bonds. If the Agency is unable to purchase or call outstanding Notes or Bonds of any particular issue in amounts sufficient to exhaust the moneys applicable to such issue, the remainder of such moneys shall be held in trust by the Treasurer and applied to the payment of the outstanding principal of such issue as the same become due by its terms, and,pending such application, such remaining moneys may be invested as other funds of the Agency. 7 (ii) The Legislative Body may determine to apply such proceeds to the cost of additions or improvements to the Enterprise if(a) the Agency first secures a consulting Engineer's Report containing (1) the loss in annual Revenues, if any, suffered, or to be suffered, by the Agency by reason of such eminent domain proceedings, (2) a general description of the additions or improvements then proposed to be acquired by the Agency from such proceeds, and (3) an estimate of the additional Revenues to be derived from such additions or improvements;and (b) the Treasurer, on the basis of such Engineer's Report, determines that such additional Revenues will sufficiently offset the loss of Revenues resulting from such eminent domain proceedings so that the ability of the Agency to meet its obligations hereunder will not be substantially impaired. Sach determination by the Treasurer shall be final and conclusive. The Agency shall then promptly proceed with the construction of the additions or improvements substantially in accordance with such Engineer's Report. Payments for such construction shall be made from such eminent domain proceeds. Any balance of such proceeds not required by the Agency for the purposes aforesaid shall be deposited in the Revenue Fund. (iii)If such eminent domain proceedings have had no effect or, at the most, a relatively immaterial effect upon the Revenues and the security of the Outstanding Bonds, and a consulting Engineer's Report filed with the Treasurer so concludes, the Treasurer may so determine. Such determina- tion by the Treasurer shall be final and conclusive and, upon notice thereof, the eminent domain proceeds shall forthwith be deposited in the Revenue Fund. (1) Procure suitable fidelity bonds covering all of its officers and other employees charged with the operation of the Enterprise and the collection and disbursement of Revenues therefrom; (m)Employ consulting engineers of acknowledged reputation, skill, and experience in the construction and operation of the Enterprise for any unusual or extraordinary items of maintenance, repair, extensions, or betterments as shall be required from time to time, all reports, estimates, and recommendations of such consulting engineers to be filed with the Secretary and furnished to the purchasers of the Notes if requested; and (n) Employ a qualified independent public accountant who shall prepare and file with any holder of the Notes, if requested, and with the Treasurer annually within ninety (90) days after the close of each fiscal year on June 30, commencing in the year 1978, an annual audit for the preceding year which shall include: (i) A balance sheet including balances of all funds herein created; GO A statement in detail of the cash receipts and disbursements of the income and expenses of the Enterprise; (iii)A statement as to the insurance carried by it, including a brief description of each policy as to its coverage and name of company issuing it; (iv)The number of customers classified by rate or charge for service groups, the number of properties connected to the Enterprise, and the number of applica- tions for service on hand but not connected; (v) The annual billings and the average monthly billings per user; (vi)The schedules of the rates and charges prescribed by the rate ordinance then in effect; (vii) A recapitulation of funds and accounts created by this Indenture into which are put moneys derived from the operation of the Enterprise and from the sale of the securities herein authorized, which shall show balances at the beginning of the period, deposits and withdrawals made during the period, and balances at the end of the period, and also monthly deposit requirements for funds during the next succeeding fiscal period;and (viii) Comments of the accountant relative to the fulfillment of the provisions `^ of this Indenture and the manner in which the Enterprise has been operated, and his recommendations for improving the operation of the Enterprise. 8 30. All of the provisions of this Indenture shall constitute a contract between the Agency and the Holder or Holders of the Notes hereby authorized, and, from and after the sale and delivery of any of the Notes, no amendment, alteration, or modification of the Notes or of the coupons appertaining thereto or of this Indenture which shall impair, impede, or lessen the rights of the Holders of the Notes or the coupons appertaining thereto then outstanding shall be made without the prior written consent of the Holders of at least seventy-five percent (75%) of the aggregate principal'' amount of Notes then outstanding. Any such amendment, alteration, or modification which shall have received the written consent of the Holders of said percentage of said outstanding Notes as provided in this Section shall be binding on the Holders of all of the Notes and any coupons appertaining thereto, either attached to or detached from said Notes. 31. No additional Notes or other obligations shall be issued which shall have priority over the Notes. The Agency may issue Additional Notes or other debt obligations payable as to principal and interest from the Revenues on a parity with the Notes for the purpose of acquiring, constructing, or improving additions, extensions, or betterments to the Enterprise or for the purpose of refunding any outstanding obligations issued for the Project or for any combination of such purposes and subject to the conditions provided in this Section. Additional parity notes may be issued to complete the project. Additional parity notes for any other purpose, however, shall not be issued unless the annual Net Revenues of the Enterprise for the latest fiscal year prior to the issuance of such additional notes, as shown by an audit, certifi- cate, or opinion of an independent public accountant employed by the Agency, plus the additional Revenues, estimated as herein provided, shall have produced a sum equal to 1.20 percent of the average annual debt service of any then outstanding Notes and proposed Additional Notes during the term of the Notes, including required reserves. "Debt service" as used herein means principal and interest accruing or the amount of any transfers required to be made to any funds from which such principal and interest are to be paid. There shall also be compliance by the Agency with all other reserve requirements for the loan represented by the Notes or any other outstanding indebt- edness of the Agency. The Revenues may be revised and enlarged in a written report of an independent engineer, to include any or all of the following: (a) The Revenues of the additional number of users connected to the Enterprise at the time of the issuance of said report, had such users been connected to the Enterprise or subject to charges for the entire fiscal year used for such audit, certificate, or opinion; (b) The Revenues to be derived from the users connected to a water system or facilities to be acquired by the Agency from the proceeds of the Additional Notes; (c) Seventy-five percent (75%) of the additional Revenues estimated to be produced by the construction of the works for which Additional Notes are to be issued, or by construction from other available revenues, in any twelve (12) month period out of the twenty-four(24)months next succeeding the completion of construction;and (d) Seventy-five percent (75%) of the additional Revenues estimated to be derived from any increase in charges made by the Agency which have not been reflected in the audit, certificate, or opinion for the year covered therein. Nothing in this Indenture shall be deemed to limit or restrict the power of the Agency to issue such Additional Notes payable from but inferior as to the lien of any of the then outstand- ing Notes on the Revenues without compliance with the provisions of this Section or of any other provision of this Indenture. 32. One or more of the events provided hereunder shall constitute an event of default: (a) A default in the d'ue and punctual payment of the principal of a Note.when and as the same shall become due and payable, whether at maturity as therein expressed, by proceedings for call and redemption, by declaration or otherwise, and such default shall continue for a period of five days. (b) A default in the due and punctual payment of an installment of interest of a Note when and as the interest installment shall become due and payable, and such default shall'continue for a period of five days. 9 (c) A default in the observation of any of the covenants, agreements, or conditions on its part herein or in the Notes contained, and the default has continued for a period of thirty (30) days. (d) The filing by the Agency of a petition or answer seeking reorganization or arrangement under the Federal bankruptcy laws or other applicable laws or statutes of the United States of America, or the approval of such a petition by a court of competent jurisdiction, filed with or without the consent of the Agency, seeking reorganization under the Federal bankruptcy Iaws or other applicable laws or statutes of the United a— States of America or the assumption or control of the Agency or of the whole or any substantial part of its property by a court of competent jurisdiction under the provisions of other laws for the relief or aid of debtors. (e) Upon the happening of an event of default, the holders of not less than sixty-six and two-thirds percent (66-2/3%) in aggregate principal amount of the Notes at the time outstanding shall be entitled, upon notice in writing to the Agency, to declare the principal of all of the Notes then outstanding and the interest accrued thereon to be due and payable immediately, and upon such declaration the same shall become and shall be immediately due and payable. (f) All of any Revenues pledged to the payment and security of the Notes, including all sums in all of the funds provided therefor upon the date of the happening of an event of default, and all sums thereafter received by the Agency, shall be applied by it, upon presentation of the Notes and the stamping thereon of the payment if only partially paid, or upon the surrender thereof if fully paid, in the order provided in subsections (g) through 6). (g) Said moneys shall be applied to the payment of the costs and expenses of the Noteholders in declaring an event of default, including reasonable compensation to their agents, attorneys, and counsel, and to the payment of the costs and expenses of the Treasurer in carrying out the provisions of this section, including reasonable compensa- tion to the Treasurer's agents, attorneys, and counsel. (h) In case the principal of the Notes shall not have become due and shall not then be due and payable, said moneys shall be applied to the payment of the interest in default, first, in the order of presentation and registration for nonpayment in the manner provided by law, and then in the order of maturity of the installments of the interest. (i) In case the principal of the Notes shall have become and shall be then due and payable, said moneys shall be applied to the payment of the principal and interest of the Notes, first, in the order of presentation and registration in the manner provided by law, and then in the order of the maturity of the installments of principal and interest. 0) In case the moneys shall be insufficient to pay in full the whole amount so owing and unpaid upon the Notes, under subsections (h) and (i) of this section, then the moneys shall be applied to the payment, first of interest, and then of principal, ratably to the aggregate of the interest or principal then due to the persons entitled thereto without discrimination or preference. (k) The Agency may refund any defaulted Notes by the issuance of new Notes maturing after the maturity of the last Note of this issue, but otherwise on a parity as to payment with the Notes of this issue, and sell the Notes and use the proceeds to pay the defaulted Notes, in which event the action shall be deemed to avoid or cure a default under this section. With the consent of the Noteholder, the refunding Notes may be exchanged for the Notes refunded. 33. Subject to any contractual limitations binding upon the Holders of the Notes (including, but not limited to, limitations upon the exercise of a remedy to the Noteholders holding a specific proportion or percentage of the Notes), the Holders of Notes shall have the right, for the equal benefit and protection of all Holders of Notes similarly situated, as provided in this section. (a) By action or suit in equity, they may require the Agency and the Legislative Body and other officers, agents, and employees to account as the trustee of an express trust. (b) By action or suit in equity, they may enjoin acts or things which may be unlawful or violate the rights of the Noteholders. 101-1 (c) By mandamus or other suit, action, or proceeding at law or in equity, they may enforce their rights against the Agency and its Legislative Body and other officers, agents, and employees, and to require and compel it or them to perform and carry out its and their duties and obligations under the law and its and their covenants and agreements with Noteholders. 10 (d) No remedy conferred by this section or by the law is intended to be exclusive of any other remedy, but each remedy is cumulative and in addition to every other remedy, and may be exercised without exhausting and without regard to any other remedy con- ferred by this section or by the law. (e) No waiver of a default or breach of duty or contract by any Noteholder shall extend to or shall affect a subsequent default or breach of duty or contract or shall ,,.., impair rights or remedies thereof. (f) No delay or omission of a Noteholder to exercise a right or power accruing upon a default shall impair the rights or power or shall be construed to be a waiver of the default or acquiescence thereof. (g) Every substantive right and every remedy conferred upon the Noteholders may be enforced and exercised from time to time and as often as may be deemed expedient. (h) In case an action, suit, or proceeding, to enforce a right or exercise a remedy shall be brought or taken and then discontinued or abandoned, or shall be determined adversely to the Noteholders, then, and in every case, the Agency and the Noteholders shall be restored to their former positions and rights and remedies as if no suit, action, or proceeding has been brought or taken. 34. On the basis of the facts, estimates, and circumstances now in existence and in existence on the date of issue of the Notes, as determined by the Treasurer, the Treasurer is authorized to certify that it is not expected that the proceeds of the issue will be used in a manner that would cause such obligations to be arbitrage notes. Such certification shall be delivered to the purchaser with the Notes. I hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Board of Directors of the Truckee — Donner Public Utility District at a meeting thereof held on the 15th day of August, 1977, by the following vote: ,.� AYES, and in favor thereof: NOES: ABSENT: 11 EXHIBIT "II" FORM OF FULLY REGISTERED NOTE UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF NEVADA TRUCKEE — DONNER PUBLIC UTILITY DISTRICT EMERGENCY DROUGHT RELIEF PROMISSORY NOTE OF 1977 NO. $260,000 The Truckee — Donner Public Utility District, in the County of Nevada, State of California, a public utility district organized and existing under the Constitution and laws of the State of Cali- fornia, for value received has obligated itself to pay to the United States of America, Farmers Home Administration, or registered assigns (subject to prior redemption), from the Emergency Drought Relief Promissory Notes of 1977 Note Fund, the aggregate principal amount of TWO HUNDRED SIXTY THOUSAND DOLLARS ($260,000), together with interest thereon from the date at the rate of FIVE PERCENT (5%) per annum. Said amount shall be payable in not to exceed 39 annual equal amortized installments or principal and interest in the amount of Fifteen Thousand Two Hundred Seventy-eight dollars ($15,278), commencing on the first day of September, 1979, and thereafter on the first day of September in each year until maturity, together with a single payment of interest only on September 1, 1978. If, on presentation on any payment date, payment of the installment or installments of principal and interest hereof is not made in full, the installment shall continue to bear interest at the rate stated herein until paid in full. The aggregate principal amount of the Notes shall not exceed the aggregate payments by the Government for the Notes, as said payments and the dates thereof are endorsed hereon by the Treasurer, and a principal amount of said Notes of the longest maturity equivalent to the difference between such aggregate principal amount and such aggregate payment shall be deemed unissued. Interest on this fully registered Note shall be determined on the Government's aggregate of payments for the Note from the respective dates of payment as endorsed hereon by the Treasurer. In such event the Note shall be paid in not to exceed 39 annual equal amortized install- ments, the last payment being adjusted to represent the amount required to pay the last install- ment of principal and interest. This Note is issued in total principal amount of Two Hundred Sixty Thousand Dollars ($260,000) and is issued under and pursuant to the Constitution and Statutes of the State of California, in particular the Revenue Bond Law of 1941 and Article 9 thereof (commencing at Section 54610 of the Government Code of the State of California), Resolution No. A Resolution Providing for the Issuance and Sale of$260,000 Emergency Drought Relief Promis- sory Notes of 1977;Prescribing the Amount, Date, Form, and Maturities Thereof;Fixing the Rate of Interest Thereon; and Providing for a Pledge of Revenues of Pay the Principal Thereof and Interest Thereon, and Ordinance No. , an Ordinance Authorizing the Execution of Loan Agreement and Providing for the Issuance and Sale of Emergency Drought Relief Promis- sory Notes of 1977 to the United States of America Acting through the Farmers Home Admin- istration, the "Government", the "Indenture", and under and pursuant to the proceedings therefor of said District duly had and taken. Both principal and interest are payable solely from the Revenues as defined in said Resolution, and the Truckee — Donner Public Utility District is not obligated to pay the principal hereof or interest hereon except from the Revenues of an Enterprise consisting of the District's system, works and facilities used for or useful for the purpose of obtaining, treating and supplying water for domestic use, irrigation, sanitation, Industrial use, fire protection, recreation, or any other public or private uses of the District and its inhabitants. The Notes constitute a first and prior lien upon said Revenues, except that Additional Notes or obligations may be issued on a parity of lien in accordance with the Indenture hereinbefore referred to, or subordinate as to the lien thereof. (i) All of the Revenues to be derived from the charges of the Enterprise, including Revenues from improvements, additions, and extensions thereto which may hereafter be constructed or acquired within said District, are pledged to pay the principal of and interest on the Notes, and to provide (1) a Note Fund, (2) a Reserve Fund, (3) operation and maintenance funds, and (4) a Surplus Fund, as provided in said Indenture. The District has created a special Emergency Drought Relief Promissory Notes of 1977 Note Fund for the payment of said principal and interest and has agreed to set aside in said fund, at the times as in said Indenture provided, the amount necessary to pay interest and principal as it shall fall due. For the further protection of the payment of the Notes and the interest thereon when due, the District has created a special Reserve Fund, into which it has agreed to pay, on the first day of July next following the completion of the project for which the Notes were issued and for the next successive 9 years, a sum equal to 1/10 of the amount required to equal the average annual amount of principal and interest on the Notes to be paid during their term, which fund shall be used solely as a guarantee for the payment of the principal of and interest on the Notes. Both the principal hereof and interest hereon are payable by the Treasurer of the District, Truckee, California, by check, draft, or warrant mailed to the registered owner at its address as it appears on the register maintained in the office of said Treasurer. The principal hereof is subject to call and redemption,in whole or in part, at the option of the District, upon payment to the registered owner hereof of the principal so redeemed, as provided in the Indenture providing for the issuance hereof. Payments made on the obligation evidenced by this instrument, regardless of when made, shall be applied first to interest due through the date of payment and next to principal except that pay- ments made from security depleting sources shall, after payment of interest to the payment date, be applied to the principal last to become due hereunder and shall not affect the obligation of the District to pay the remaining installments as scheduled. This Note is transferable by the registered owner hereof in person or by its attorney duly authorized in writing at the office of the Treasurer of the District,Truckee, California. This Note may be exchanged for fully registered Notes of denominations and in the manner provided in the Indenture providing for the issuance hereof. This Note is given as evidence of a loan to Truckee — Donner Public Utility District made by the United States of America, pursuant to the Consolidated Farm and Rural Development Act, and shall be subject to the present regulations of the Farmers Home Administration and to its future regulations not inconsistent with the express provisions hereof or of the Indenture providing for the issuance hereof. It is hereby certified, recited, and declared that all acts, conditions, and things required by law to exist, happen, and to be performed precedent to and in the issuance of this Note have existed, happened, and been performed in due time, form, and manner as required by law and that the amount of this Note, together with all other obligations of said District, does not exceed any limit prescribed by the Constitution or Statutes of said State and that the District is authorized by law to operate the Enterprise herein referred to, and the Legislative Body has established and has co- venanted to maintain rates and charges sufficient with other Revenues received to pay the amount of principal and interest as it shall become due. IN WITNESS WHEREOF, the Truckee — Donner Public Utility District has caused this Note to be executed under its official seal, signed by its President and countersigned by its Clerk, and this note to be dated the day of 1977. (SEAL) COUNTERSIGNED: President, Truckee — Donner Public Utility District Clerk, Truckee — Donner Public Utility District GO ENDORSEMENT OF PAYMENT The United States of America, Farmers Home Administration, has duly paid for the purchase hereof, on dates and in amounts, as follows: Date of Payment Amount of Payment Signature of the Treasurer TRANSFER FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto the within note and hereby irrevocably constitutes and appoints attorney to transfer said note on the registry books kept for that purpose with full power of substitution in the premises. Dated: WITNESS: r^