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HomeMy WebLinkAbout1977-12-19 Min - Board REGULAR MEETING DECEMBER 19, 1977 The regular meeting of the Board of Directors of the Truckee Donner Pub- lic Utility District was called to order by the Chairperson in the District office at 7:00 P.M. ROLL CALL: Alexander, present; Kuttel , present; Huber, present; Maass, present; /pol, Sutton, present. EMPLOYEES PRESENT: Bob Slattery, General Foreman, present in Mr. Seymour's absence for a weeks vacation and Pomponio. CONSULTANTS PRESENT: Grumer - Cook arrived at approximately 7:25 P.M. OTHERS PRESENT: See list of audience attendance. CORRECTION AND APPROVAL OF MINUTES Director Huber pointed out corrections to the approved minutes of July 18, August 1 , and September 19, 1977. It was moved by Director Maass and seconded by Director Kuttel that the corrections noted by Mrs. Huber be added to the already approved minutes for the meetings of July 18, August 1 , and September 19. ROLL CALL: Alexander, abstain; Huber, aye; Kuttel , aye; Maass, aye; Sut- ton, aye. The Board received corrections to the minutes of September 12, September 26, October 3, and November 29 from Mrs. Sutton. Approval was tabled until later in the meeting. BILLS FOR BOARD APPROVAL It was moved by Mr. Maass that the Board approve the bill listed on Bills for Board Approval . Seconded by Mrs. Huber. ROLL CALL: Alexander, abstain; Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. MONTHLY FINANCIAL REPORT The Board received a monthly financial report for the month ending Septem- ber 1977. The value on the PUD house of $24,994 was questioned along with the item listed as Interest on Loan/Water Department. The Board directed Mr. Sey- mour to look into and explain the value on the PUD house as real property and why the other $600,000 properties are not listed. Further discussion on this financial report was deferred to the next meeting for additional information from Mr. Seymour. REPORT FROM ELECTRIC COMMITTEE Roberta Huber reported that the Electric Committee has concluded that the new Sierra Pacific Power Company wholesale rate will result in an approximate savings to the District of $60,000 per year. A proposed rate reduction to PUD customers was presented giving an estimated reduction in annual revenue of $51 ,000. The new rate would: Combine D-1-A and D-1-B rates so that there would only be one domestic rate; increase the minimum from $5.00 to $6.00 per month for 100 kilowatt hours or less consumed; calculate each kilowatt hour at the rate of 2.2 cents over the minimum. A reduction of rates would be recognized by approximately 75% of the District's customers - the 25% remaining would pri- marily be minimum users. The Committee based their figures on the rate proposal r-- prepared by R. W. Beck. The Committee proposed changing the commercial rates as recommended by R. W. Beck which were reported not to have any significant effect on revenue but rather the rate calculations. After considerable discussion, it was moved by Director Huber that on the first regular meeting in January that a public hearing be noticed thoroughly in the local paper and on the radio that there will be discussion on a rate change and would like an ordinance prepared incorporating the proposed rate change from the electric committee that will include, in addition, the rate change from R. W. Beck study of September 1976 for the commercial users; the proposed rate schedule would be a single domestic rate schedule eliminating 12/19/77 Pg- 1 the differential of D-1-A and D-1-B. The ordinance would take effect with the meter readings taken in February. Seconded by Director Kuttel . ROLL CALL: Alexander, aye; Kuttel , aye; Maass, aye; Huber, aye; Sutton, aye; SO MOVED. MANAGER'S REPORT (attached to the Minutes of the Meeting) REPORT RE PT&T PROPOSAL FOR DISTRICT TO ACT AS PAYMENT STATION FOR TELEPHONE BILLS Following the District's proposal to collect Pacific Telephone bills for an amount of $.25 per collection, Mr. Domergue of Pacific Telephone told Mr. Seymour that the maximum amount PT&T will pay for collection is $. 11 . The matter was dropped. STATUS OF REFUND FROM SIERRA PACIFIC RATE PROCEEDING SETTLEMENT The Chairperson reported that the refund check was received from Sierra Pacific today in the amount of $166,303.85 as a result of the rate hearing. The direction from the Board regarding this refund was to send the calcula- tions for the refund to R. W. Beck for verification and to deposit the check in the District's General Fund for investment in the Local Agency Investment Fund until the refund is made to the District customers. EVALUATION OF 1976 ELECTRIC RATE INCREASE AS IT RELATES TO NEW SPPCo. RATE SCHEDULE There was no Board discussion on this matter; see written statement in Manager's Report. REPORT ON FEEDER "F" REBUILD FIELD INSPECTION BY R. W. BECK Mr. Slattery reported that a R. W. Beck representative did inspect the contract work on the Feeder "F" line to service TTSA. He reported that it was alright with the exception of a few minor changes necessitated by the District. It was noted that $800 was withheld from the contractor for the finish-up work the District is going to have to do. STORM DAMAGE REPORT Mr. Slattery reported that storm damage outage reports started early Thursday, December 15, morning with severe damage to the West end of Donner Lake area and Tahoe Donner. The electric crews worked Thursday, Friday, Sat- urday, and Sunday doing restoration work. It was reported that some customers were out of power for two days. The high winds caused trees to fall through power lines resulting in loss of service spans, broken utility poles, and de- tached electric services to homes. Mr. Slattery estimated $6,000 to $8,000 damage in material and labor costs. REPORT ON SUBSTATION UPGRADING Mr. Slattery reported that he met with a representative of R. W. Beck last week to review the two-year work plan which is part of the REA loan ap- plication. The work plan is to provide additional capacity to the Truckee Substation sometime in May or June 1978. The increase will be from 7500 kilo- volt amperes to 15000 kVA. Estimated cost is $300,000. Other work to be done will be the removal of transformers from the Truckee Substation to the Tahoe Donner Substation and additional work at the Donner Lake Substation. Mr. Slattery has inquired of transformer manufacturers regarding price and delivery on the transformers needed at the Truckee Substation. He has received a de- livery quote of no less than six months lead time. Mr. Slattery noted that a negative declaration on the project will have to be done. The Board directed that the Manager inquire of Jim Coulombe of REA if a special workshop meeting would be convenient with the Board on Monday, Jan- uary 9, 1978, in the evening; or if not, on Tuesday, January 10, in the af- ternoon. MISCELLANEOUS - CALL OUT PROCEDURES Mr. Slattery explained that some complaints have been received from cus- tomers regarding the inability to reach the on-call personnel during an em- ergency. Solutions to this problem were discussed and it was decided to direct Mr. Seymour to look into additional answering apparatus to the existing system 12/19/77 Pg• 2 as an interim solution and to look into the cost to have an answering service take all after-hour calls. CONSIDERATION OF DRAFT POLICY STATEMENT RE LEASING OF DISTRICT LAND Mr. Grumer requested the Board table this item and also "Consideration of Resolution Declaring Parcel on Highway 267 Unnecessary for District Uses" be tabled until the next meeting so that he could discuss some questions he has with Mr. Seymour. The Chairperson noted that a letter has been written /... to the Park and Recreation District regarding their interest in a potentially surplus parcel on Highway 267. The Board had no objections to tabling this item to the next meeting. CONSIDERATION OF FINAL DRAFT RESPONSE TO GRAND JURY The directors received a revised draft of a reply to the Grand Jury Report received earlier this year. Since it was acceptable, it was moved by Director Maass that the revised draft reply by Pat Sutton be sent to the Grand Jury (copy attached to these minutes) . Seconded by Director Kuttel . ROLL CALL: Alexander, abstain; Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye; SO MOVED. The Chairperson directed a member of the staff to type the final draft on PUD letterhead so that the directors could sign it within the next day or two. FARMERS HOME ADMINISTRATION LOAN/GRANT: Status Report The Chairperson reported that the Board received an updated checklist on the Farmers Home Administration requirements for the loan/grant. Also, a let- ter from William Grimmer of FmHA has been received; it lists the requirements of the Letter of Conditions which have not been complied with. Dan Cook presented the Board with a draft letter he prepared and proposed to send to the engineering department of Farmers Home Administration. He stated that he met with the engineering department in Woodland, California, and they r•— questioned the District's project in respect to its relation to drought relief. Mr. Cook said his draft letter would clarify the need for the funds and elim- inate the question. The Chairperson stated she felt this was confusing as the District has received a commitment letter dated September 29, 1977; Mr. Cook explained that the FmHA has released new guidelines that require an analysis and endorsement of the project by the engineering department. It was moved by Director Maass that the Board direct Dan Cook to send his draft letter of December 19, 1977, to Mr. Erwin H. Hoffman with FmHA of Woodland. The draft letter is attached to the minutes of this meeting along with a memo- randum from Mr. Cook dated December 16. Seconded by Director Alexander. ROLL CALL: Alexander, aye; Kuttel , aye; Maass, aye; Huber, aye; Sutton, aye; SO MOVED. Mr. Cook reported that three contractors attended the pre-bid job showing on December 16, 1977. PROGRESS REPORT FROM DISTRICT ENGINEER RE ACCESSIBILITY OF WEST RIVER STREET ASSESSMENT DISTRICT CAPACITY PURCHASE FUNDS The Board was in receipt of a memorandum from Matt Gomez of Arthur Young stating that certain restrictions should be removed from previously restricted funds. Among them included the amount due the District from the West River Street Assessment District capacity purchase fund. It was agreed a resolution would have to be prepared by Mr. Grumer for the Board to remove the restric- tions and transfer the funds to the General Fund. CONSIDERATION OF RESOLUTION SETTING FORTH DISCONNECT PROCEDURES The Board received a resolution prepared by Mr. Grumer outlining disconnect procedures for delinquent accounts. The resolution is based on a memorandum pre- pared by Mr. Seymour. It was moved by Director Maass and seconded by Director Kuttel that Reso- lution No. 7756, establishing policy regarding billing and delinquent accounts be adopted. ROLL CALL: Alexander, aye; Kuttel , aye; Maass, aye; Huber, aye; Sutton, aye; SO MOVED. 12/19/77 pg. 3 MISCELLANEOUS - SOLAR ENERGY COMMITTEE As the appointed chairperson for the Solar Energy Committee, Mrs. Huber asked if the other Board members objected to the Committee writing inquiries to other utilities engaged in solar energy on District letterhead. There were no objections. Mrs. Sutton asked that a member of the staff contact Mr. Dick Racich and request that he remove the solar heating equipment from the Board room he brought to the last board meeting for a demonstration. DART REQUEST TO BEGIN ENVIRONMENTAL REVIEW PROCESS ON TWO NEW WELL SITES At this time, the agenda was changed to take up this item. Jim Thompson, attorney for Dart, Dr. John Sharp of Hydro-Search, and Keith Sauers, Cranmer Engineering, appeared before the Board to present a status report on the Sander's Well #1 and to ask the Board to consider the next phase of water source development. Dr. Sharp reported that the Sander's Well is 612 feet deep and that the design is identical to the Northside and Sales Office wells. The well has a 26 inch hole with 16 inch casing and a gravel pack with a fifty-foot concrete seal at the surface. At the present time, the well is undergoing development work to increase its yield, and production rates are increasing with a current rate of pumping at 350+ GPM on the Sander's Well . This is to test both the production of the well and also to see what draw downs may be induced in sur- rounding wells. Dr. Sharp stated that pre-development pumping results indicate pumping from the Sander's Well is getting a response from the Shane Well . He concluded that it would be very unlikely that there would be a significantly adverse affect on the Shane well .as a result of the pumping of the Sander' s Well . The Board discussed the proposed Sander's Well #2 and #3. The interconnect- ing of the three wells with the District's system was discussed along with the necessity to make a freeway crossing for the connection of the Sander's Well #3• It was reported by Dr. Sharp that the Sander' s Well #1 is expected to pro- duce 30-35% of the annual steady demand of Tahoe Donner. When asked if North- side and the Sanders Wells are expected to meet Tahoe Donner's requirement of 4,000 GPM, it was stated that it was anticipated they will , but it would not be certain until the last two wells are developed. The Board was asked by the Dart Representatives to commence environmental assessment reports on the two proposed well sites. Director Sutton noted that some attention is going to have to be given to the well locations as far as earthquake damage is concerned. It was the opinion of the Board that a Water Committee meeting with Dan Cook was needed to take place prior to the authoriza- tion of an environmental assessment of the projects. The matter is to be placed on the agenda for the first meeting in January. REPORT FROM COUNSEL RE DISTRICT COMPLIANCE WITH CALIFORNIA ENVIRONMENTAL QUALITY ACT REQUIREMENTS Mr. Grumer presented the Board with updated Environmental Quality Act Guide- lines which need to be adopted by the Board. It was decided to place this item on the next agenda after the Board had time to review the guidelines. REVIEW AND ACCEPTANCE OF PROPOSAL FROM ROGER N. BONNETT, MAI , FOR APPRAISAL OF TEN DISTRICT-OWNED PARCELS The Board was in receipt of a proposal from Roger 11. Bonnett to give the Fair-market value of ten district-owned parcels within 60 days from receiving a purchase order at a cost of $1 ,200. It was moved by Director Kuttel and sec- onded by Director Alexander that the Board authorize these appraisals at a cost of$1 ,200. ROLL CALL: Alexander, aye; Kuttel , aye; Maass, aye; Huber, aye; Sutton, aye; SO MOVED. REVIEW AND CONSIDERATION OF ACTION RE COMPLIANCE WITH EMPLOYMENT RETIREMENT INCOME SECUTIRY ACT OF 1974 (ERISA) The District' s Pension Plan carrier, Cal-Western Life, has asked that the Board adopt the ERISA requirements. Mr. Grumer informed the Board that he knows very little about the ERISA requirements , but indicated that he knows of no rea- son why the District should not adopt the procedure. The Chair directed that 19/10/77 Pq. 4 the Minutes show District Counsel 's disclaimer. The Board was presented with a resolution prepared by Wayne Richardson Co. , Inc. adopting the pension plan in compliance with ERISA. It was noted that the District's present pension plan would automatically be modified to comply with ERISA as a result of the action taken on the resolution. The resolution called for naming three trustees; it was decided to list the Board President, Vice-President and Treasurer. It was moved by Director Huber that Resolution No. 7757 adopting an ERISA complaint retirement plan be adopted and supplemental documentation be complied with. Seconded by Director Maass. ROLL CALL: Alexander, aye; Maass, aye; Kuttel , aye; Huber, aye; Sutton, aye. DIRECTION RE ARTHUR D. LITTLE REPORT FOR TTSA The Chairperson reported that she had contacted the Arthur D. Little office in San Francisco to ask if the firm could discuss their report with the Board. It was determined that Arthur Little has finalized their work for TTSA and no money is allocated for this kind of meeting. Mrs. Sutton then called the Ad- ministrative Assistant at TTSA, Mr. Ken Foster, and he said that he would be available to meet with the Board. The Board wished to invite Mr. Foster to a meeting for a brief question and answer period on the Arthur Little report at a meeting in January. REPORT FROM DISTRICT ENGINEER RE ASSESSMENT DISTRICT PROCEEDINGS RELATED TO ARMSTRONG TRACT WATER SYSTEM Dan Cook reported that the homeowners in the Armstrong and Biltz Tract are trying to form an assessment district to improve the water system, upgrade the roads, and install sewer service. He asked the Board to make a decision about giving the old Redwood "Town Tank" to the assessment district. Mr. Cook thought it would give a savings of $20,000 to the assessment district. It was moved by Director Kuttel that the District make available the Red- wood "Town Tank" to the Armstrong Tract Assessment District if it is formed. r-- Seconded by R. Huber. ROLL CALL: Alexander, aye; Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. POSSIBLE ACTION TRANSFERRING FUNDS TO TRUST ACCOUNTS Mr. Grumer said that he read the memorandum from Matt Gomez regarding the transfer of restricted funds, but needed clarification regarding the form of the resolution to accomplish this. The Board decided to set a special meeting for Tuesday, December 27, 1977 at 3:00 P.M. to consider this matter further. RESOLUTION TO RESCIND RESOLUTION TRANSFERRING CUSTOMER DEPOSIT ACCOUNT FROM TNB TO BANK OF AMERICA It was moved by Director Maass and seconded by Director Kuttel that Reso- lution 7758 rescinding Resolution 7750 be adopted. It was noted that the Con- sumer Deposit account at Tahoe National Bank can participate in the Local Agency Investment Fund. ROLL CALL: Alexander, aye; Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. DIRECTION RE DATE FOR FIRST REGULAR MEETING IN JANUARY Due to a holiday on January 2, 1978, the Board rescheduled the next reg- ular meeting to Wednesday, January 4, 1978, at 7:00 P.M. r-- DISTRICT ENGINEER'S REPORT UPDATE RE TITLE TO PROSSER WELL Mr. Cook reported that he is still waiting for the preliminary title report on the Prosser Well . He reported that the State Health Department has condemned the use of the well because of proximity to the high pressure oil line, and the Department recommends proper abandonment of the well to protect the groundwater table. Mr. Cook said that the two options available to the Dsitrict are to plug the well themselves or alert Fibreboard of the potential hazards and ask that they plug the well if the District will not be allowed to. 12/19/77 pg• 5 CERTIFICATION OF TAHOE DONNER WATER BOX REPLACEMENT WORK Mr. Cook reported that a written report on this matter is forthcoming. CERTIFICATION OF TAHOE DONNER WARRANTY WORK Mr. Cook reported that the warranty work has been completed and he plans to send a written report on the certification. CERTIFICATION OF HWY 267/RIVER CROSSING WATER LINE TESTS Mr. Cook stated that he has certified the Highway 267 River Crossing Water line tests according to Appendix E of the Water System Analysis report. Mr. Cook indicated his dissatisfaction with the handling of the District's interests in the Dart/PT&T joint project, and that any future such joint projects will have to be handled differently. UPDATE RE SECURITY TO DART FOR RIVER CROSSING PROJECT Mr. Grumer reported that he had the final copies of the security agreement with Dart and they will be mailed to the Directors, Mr. Thompson, and Don Strand this week. Mr. Strand asked if the final copy of the agreement for the use of Wells A and B had been prepared. PLANNING DEPARTMENT NOTICES The Board discussed the proposed parcel split for 0. H. Sanders. The Board expressed concern about the additional drillings of wells and installa- tion of septic tanks in relation to the existing Sander's Well #1 and proposed Wells #2 and #3. The Board directed Mr. Cook to respond to the Planning Depart- ment notice. CORRESPONDENCE - attached to these minutes Witham/Peeler Electricity Theft: The Board was in receipt of a letter from Merrilie Witham and Verna Peeler in regard to a theft of electricity from their home by a neighboring building contractor. They reported that the con- tractor was using their power for building purposes. The Chairperson noted that the Manager should reply to this letter. Miscellaneous Damage Claims for Appliance Failure during Partial Power: The Board received two separate claims regarding damage to appliances during a recent brown-out in Tahoe Donner. They are from Whirlpool and Gautsche. The matter was referred to the next agenda for action by the Board. Stice and Wells Insurance: The Chairperson noted that the District has received a letter from the insurance carrier informing us that our insurance expires on March 11 , 1978. The Board felt that they needed to talk to Mr. Stice and the matter was placed on the next agenda. The meeting adjourned to executive session at 12:00 A.M. to discuss per- sonnel matters. The meeting reconvened to regular session at 12:51 A.M. It was moved by Director Maass that the Board direct the Manager to respond to a grievance filed by John Stralla, Business Agent, for the IBEW on behalf of Jane Reed, dated December 5, 1977. The response should be according to the facts of the case and the grievance procedure as outlined in the contract. Seconded by Director Kuttel . ROLL CALL: Huber, aye; Maass, aye; Kuttel , aye; Sutton, aye; Alexander, abstain. Another grievance filed by the union employees concerns itself with the new managerial secretarial position the Board has created. A copy of this grievance is attached to these minutes. It was moved by Director Maass that the Board direct the Manager to respond to the employees with his recommended letter with one additional statement regarding the provision in the contract that there is no requirement to fill vacancies. Seconded by Karl Kuttel . ROLL CALL: Huber, aye; Alexander, abstain; Maass, aye; Kuttel , aye; Sutton, aye. The Board commented on Mr. Seymour's six-month review as permanent manager. It was moved by Director Maass that the Board finds that everything is positive regarding Mr. Seymour's term as permanent manager and that he is doing a good 12/19/79 pg• 6 job and should be commended. Seconded by Director Kuttel . ROLL CALL: Huber, aye; Alexander, aye; Maass, aye; Kuttel , aye; Sutton, aye. The Chairperson reported that the Manager has completed the interviews with the applicants for the position of Executive Secretary/Administrative Assistant, and he has recommended the hiring of an applicant. It was moved by Director Maass that the Board hire Susan Craig as the Executive Secretary -Administrative Assistant to the Manager with starting salary of $1 ,000 per month graduated on a fifty dollar per six month basis for two years to $1 ,200 and that the person be hired on a six month probationary period to be reviewed by the Board in six months. This employee will be entitled to all regular em- ployee benefits. Seconded by Director Huber. ROLL CALL: Huber, aye; Alex- ander, abstain; Maass, aye; Kuttel , aye; Sutton, aye. It was moved by Director Maass and seconded by Director Kuttel that the meeting be adjourned. The regular meeting was adjourned at 12:58 A.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By �,�, Pat Sutton, President A. Milton Seymour, Clerk of the Board 12/19/77 pg• 7 TRUCKEE-DONNER PUBLIC UTILITY DISTRICT POST OFFICE BOX 309 TRUCKEE, CALIFORNIA 95734 TELEPHONE 587-3896 AUDIENCE ATTENDANCE FOR THE MEETING OF PLEASE PRINT YOUR NAME: 2. 3. 4. b 5. 6. NO 8. Topo, La�kw�r 9. 10. 11 . �^ 12. 13. 14. 15. 15. 17. 18. 19. 20. 21 . 22. 23. r TRUCKEE DONNER PUB IC UTILITY DISTRICT STATEMEN' IUES AND EXPENSES rl�a/7� �•` For the month of and nine months ended Apo _PmhPr, 1g77 ELECTRIC DEPARTMENT WATER DEPARTMENT ELECTRIC AND WATER'TOTAL . Current Month Year to Date -Current Month Year to Date Current Month Year to Date 1976 1977 1977 1976 1977 1977 1977 1976 1977 140,061 19,371 * 19,260 *(19,260) Net Revenues 140,873 159,321 1$5439-"854 16,923 ill 178,724 159,432 1,613,329 1.722,578 Purchased Power 98,205 99,749 1-,019,536 - - - 99,749 1,012,264 1,019,536 Operating Expenses 2,987 4,413 45,379 6,647 8,185 65,253 12,598 94,901 110,632 Maintenance Expenses 2,085 3,353 34,246 721 2,806 19,792 69159 45,617 54,038 r Customer Accounts Expenses - 5,068 8,332 59,365 1 ,389 1 ,423 13,386 9,755 75,004 72,751 Meter reading, billing, customer services General and Administrative Expenses 4,378 7,428 66,688 1,876 3,183 29,258 10,611 59,745 95,946 Outside Services 10,040 ( 33) 52,874 10,812 1 ,819 22,045 1 ,786 98,564 74,919 Depreciation 6,837 6,983 62,360 2,548 2,588 23,251 9,571 84,-069 85,611 Interest Expense on Loans 1 ,148 818 9,100 98 288 2,506 1 ,106 19,910 11,606 Unallocated Overhead 2,739 ( 678) ( 3,463) - - - ( 678) 3,323 ( 3,463) Total Operating Expenses 133,487 130,365 1,346,085 24,091 20,292. 175,491 150,657 1,493,397 1,521,576 Total Operating Margins 7,386 28,956 197,769 ( 7,168) (20,181 ) 3,233 8,775 119,932 201 ,002 Other Income and Expenses - - - - - - - 2,473 9,866 Net Margins - - - _ _ _ - 122,405 210,868 *Adjustment of Standby Revenue between departments due to error in percentage breakdown () Indicates loss in margins - TRUCKEE-DONNER 'TILITY DISTRICT BALANCE SHEET • September 30, 1977 ASSETS MARGINS AND LIABILITIES Facilities, Buildings, Land: Margins: Plant in Service Operating margins - Cumulative $1,003,099 Electric plant $2,158,656 since 1927 Water plant 932,409 Other equities - Profit on sale 600,108 General plant 347,536 of non-utility property Less accumulated depreciation (1 ,747,115) Year to date margins 210,868 Net Plant in Service 1 ,691,486 Total Margins $1 ,814,075 Construction work in progress 34,287 Acquired plant 4,256 Long-Term Debt: Net Utility Plant $1 ,730,029 REA bonds payable 367,574 Note payable to Sierra Pacific 74,055 Power Company Real Property - PUD House 24,994 Sewer assessments payable 16,423 Other - Computer loan, truck loan 28,396 Total Long-Term Debt 486,448 Restricted Funds 365,718 Current Liabilities: Current Assets: Accounts payable 267,328 Cash 318,443 Consumer deposits payable 25,333 Notes receivable - Van Wetter 1 ,500 Accrued liabilities - Payroll taxes, 13,538 Accounts receivable - Electric 210,584 interest on notes and water usage billings Total Current Liabilities 306,199 Accounts receivable, Other - Line 43,222 extensions, connection fees, misc. Materials and supplies 198,167 Customer Advances For Specific Improve- 295,450 Other current assets - Insurance 9,515 ments to System (Restricted Funds) prepmt, interest receivable, future line extension costs Total Current Assets 781 ,431 TOTAL ASSETS 2,902,172 TOTAL MARGINS AND LIABILITIES 2,902,172 MANAGER'S REPORT DECEMBER 19, 1977 1. Pacific Telephone Proposal for District to Act as Payment Station Pacific Telephone has declined our offer to act as a payment station for telephone bills. The maximum they will pay is $.11 per collection. As of now, they are not expecting the Truckee-Donner P.U.D. to be their collection agency. 2. Status of Refund from Sierra Pacific Rate Proceeding Settlement We have received our November usage bill from Sierra Pacific which reflects the lower Schedule R rate. We note, however, that the fuel charge decreased only from 1.284 cents to 1.282 cents per kilowatt hour. We are requesting an explanation of how the fuel charge was computed under the new rate. Since we now have a cut-off date for the refund, we are working on compiling the total usage figure for our subscribers since December 29, 1975. The main obstacle to a timely refund may be the programming and debugging of the computer. This may be in part caused by the fact that our computer does not have adequate capacity to run a normal billing cycle and refund computations simultaneously. 3. Evaluation of 1976 Electric Rate Increase (3 mil ) As it Relates to New Sierra Pacific Rate Schedule The new rate schedule R will reduce our cost of electricity by approx- imately $3,600 in the summer months to $7,800 in the winter months. The three mil increase that was imposed on our customers in January 1976 yields revenue varying from approximately $9,300 in the summer to $15,900 in the winter. This shows that the three-mil increase would cause us to have a reduction in revenue varying from $5,700 to $8,100 or an approximate yearly total of $82,800. A one-mil decrease in our present rate would approximately compensate for the decrease in the new rate from Sierra Pacific. 4. Report on Feeder "F" Rebuild Field Inspection by R. W. Beck Because of the present storm damage and major outages, we have not been able to review the Feeder "F" Field Inspection report by R. W. Beck by an on-site inspection of the line. This will be done as quickly as time will allow. 5. Storm Damage Report The storm that commenced Wednesday nite and the early hours of Thursday morning created several thousand dollars damage to PUD facilities. Lines were knocked down by falling trees in Donner Lake and Tahoe Donner. The West end of Donner Lake was perhaps the hardest hit with four broken poles. Several fuses were blown resulting in power outages or brown-outs in various areas of the District. Our crews worked from 3:00 a.m. Thursday morning until well after dark Thursday night to correct the worst situations. Two poles were replaced on Friday in the Weeks Tract of Donner Lake. I was told by one of the residents that our crews did a terrific job: They were on the scene shortly after the damage occured, knocking on doors asking if they could be of assistance to the resident. Manager's Report . . . continued 6. Report on Substation Upgrading The attached letter from R. W. Beck explains some of the details that need to be taken care of to complete our loan application to REA for up- grading of our substation. Jim Coulombe and George Sevier of REA and also a R. W. Beck representative will be here January 9 and 10. They will want to meet with the Board on the evening of January 10 for a workshop session to completely review REA loan procedures and the necessary steps to complete our loan application if it is the desire or intent of the Board to do so. I recommend a special meeting be scheduled for January 10 with this single agenda item. Miscellaneous - After Hours Call Out Procedures We are receiving some complaints from subscribers regarding the inability to contact PUD standby personnel after hours. The problem occurs because the employee usually proceeds to the trouble site immediately after receiving the first call . Subsequent calls either get no answer at the employees home or are so frequent that they get switched to the non-recording number at the office so that they get no answer. Many customers are left frustrated and feeling that the PUD does not care. I recommend that we seriously study and consider the use of an answering service instead of the tape recorder. RECEIVED STEVEN E. GRUMER �9�� ATTORNEY AND COUNSELOR AT LAW D E v 1 907 TAHOE BOULEVARD, SUITE 1-12 T POST OFFICE DRAWER BT RUCKEE DONNER P.U.D. AREA CODE 702 INCLINE VILLAGE, NEVADA 89450 By TELEPHONE 831-1974 LICENSED IN CALIFORNIA & NEVADA December 15, 1977 Mr. A. Milton Seymour, Manager Truckee-Donner Public Utility District Post Office Box 309 Truckee, California 95734 Re: Quintana Main Extension Dear Milt: Enclosed herewith please find a copy of the Abstract of Resolution to be recorded upon each of the lots affected by Resolution No. 7755 after John Quintana has completed the project and the costs are accurately ascertained. Very truly yours, ST N E. GRU R SEG:mea encl. cc: All Directors Mr. Dan Cook RECEIVED DEC 19 1977 TRUCKEE DONNER P.U.D. By RESOLUTION NO. 7756 OF TRUCKEE-DONNER PUBLIC UTILITY DISTRICT ESTABLISHING POLICY REGARDING BILLING AND DELINQUENT ACCOUNTS WHEREAS , it is in the best interests of the Truckee-Donner , Public Utility District and its customers to establish a uniform procedure for billing and dealing with overdue accounts . NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Truckee-Donner Public Utility District as follows: That on all future billings it will be stated that the charges become delinquent twenty-one (21) days after the billing date. The charges will be reflected on the subsequent billing as a past due balance if they have not been paid within the twenty-one (21) day period. No collection procedures will be taken at that time unless billing personnel have reason to believe that the account will not be paid within a reasonable period of time. If collection procedures are not initiated when the first past due balance appears on the bill, and if the charges are not brought current within the next thirty (30) days, the following billing will also reflect a past due balance for the previous two (2) months. A service charge computed at the rate of ten percent (10%) per annum shall be added to any amounts which are sixty (60) days overdue. On any account sixty (60) days overdue, a notice shall be sent to the customer informing the customer that service will be disconnected unless the charges are brought current. The customer shall be given ten (10) days within which to respond. If there is no response within the ten (10) day period, billing personnel shall attempt to contact the customer by telephone and shall record the date, time, number dialed and the name of the employee attempting to contact the customer. If the customer is contacted and promises to bring the charges current, the customer shall be given a reasonable fixed period of time within which to do so. If telephone contact is not made, billing personnel shall attempt to contact the customer a second time and record the attempt as set forth above. If at this r- time there still has been no response from the customer, a notice shall be sent to the customer, by certified mail, return receipt requested, informing the customer that service will be disconnected on a date certain and demanding a response within five (5) days. If within five (5) days there is no response, billing personnel shall Steven E.Grumer Attorney at Law 1 . 1 inform the Manager, who shall cause the service to be disconnected on the date stated in the notice. The five (5) day notice shall be in substantially the form as shown on Exhibit "A" attached hereto. PASSED AND ADOPTED by the Board of Directors of the TRUCKEE-DONNER PUBLIC UTILITY DISTRICT at a meeting of the Board of Directors held within the District on the 19th day of December , 1977, by the following roll call vote: AYES: P.Al exander , K. Kuttel J. Maass R_ Huber P. Sutton NOES: None ABSENT: None , TRUCKEE—DONNER PUBLIC UTILITY DISTRICT By PAT UTTON, President ATTES 'zzz� LERK THEREOF Steven E.Grurn r Attorney at Law 2 . TRUCKEE-DONNER PUBLIC UTILITY DISTRICT POST OFFICE BOX'309 TRUCKEE, CALIFORNIA 95734 TELEPHONE 587-3894 Dear Customer: Your account is now '$ and in arrears $ On you were notified in writing that your utilities would be disconnected on unless payment was made . On " , our office attempted to contact you by phone; since we were unable to reach you and since no payment has been made, you have S (five) days in- which to pay this bill or your utilities will be dis- connected on If you should be disconnected, payment of the arrears plus a reconnection fee must be made prior to reconnection. Also, a deposit equal to two months average bill may be required. If you have any questions, " please contact us . Sincerely, A. Milton Seymour General Manager .AMS; lw �" EXHIBIT "A" RESOLUTION NO. 7757 of TRUCKEE-DONNER PUBLIC UTILITY DISTRICT ADOPTING AN ERI'SA COMPLIANT RETIREMENT PLAN WHEREAS, Truckee-Donner Public Utility District adopted a Defined Benefit Retirement Plan which was effective January 1, 1972, and executed on September 21, 1971; and, WHEREAS, the above mentioned Plan is to be replaced by a California- Western States Life Insurance Company Prototype Defined Benefit Plan Document, because of changes required by the Employee Retirement Income Security Act (ERISA) of 1974, NOW THEREFORE BE IT RESOLVED, that the Truckee-Donner Public Utility District hereby adopt the Plan as proposed to supersede the previous Plan and shall be effective on January 1, 1978; RESOLVED FURTHER, that the Trustees of this Plan shall be: Pat Sutton, President Jim Maass , Vice-President Roberta Huber, Treasurer and that Truckee-Donner Public Utility District shall serve as Plan Adminis- trator of this Plan until further action by this Board; and RESOLVED FURTHER, that the General Manager of the District and the above named Trustees be and they hereby are authorized and directed to execute such Retirement Plan Agreement in the name of and on behalf of this District and do each and every act required in order that this District may fulfill the terms of the Plan Agreement; and RESOLVED FURTHER, that the Secretary of the District be directed to place a copy of such Plan Agreement in the Minutes of this meeting; and RESOLVED FURTHER, that at such time as the above mentioned California- Western States Life Insurance Company Prototype has been approved as to form by the National Office of the Internal Revenue Service, and this District has been so notified by said insurance company, that the General Manager is hereby directed to apply or cause application to be made to the United States Internal Revenue Service District Office for approval of this District's superseding Plan and to do everything necessary or proper in order to obtain such approval with the understanding that such amendment shall not affect this District's previous deductions for contributions already made to said Plan. PASSED AND ADOPTED by the Board of Directors of the TRUCKEE-DONNER PUBLIC UTILITY DISTRICT at a meeting of the Board duly called and held within the District on the 19th day of December 1977, by the following roll- call vote: AYES: R. Huber J. Maass K. Kuttel , P. Alexander P. Sutton NOES: None , ABSENT: None , TRUCKEE-DONNER PUBLIC UTILITY DISTRICT By President of the Board ATTEST: A. MILTON S YMO Clerk Thereof RESOLUTION NO. 7758 of the TRUCKEE-DONNER PUBLIC UTILITY DISTRICT RESCINDING RESOLUTION NO. 7750 WHEREAS, Resolution No. 7750 was adopted by the Board of Directors of the Truckee-Donner Public Utility District, title: Authorizing the Transfer of the Customer Deposit Account to Bank of America; and WHEREAS, said Resolution was based on the understanding that the funds cannot be invested in the Local Agency Investment Fund; and WHEREAS, it has been determined that the funds can be invested in the Local Agency Investment Fund directly through Tahoe National Bank. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors that Resolution No. 7750 is hereby rescinded. Passed and adopted by the Board of Directors of the Truckee- Donner Public Utility District at a meeting of the Board of Directors held within the District on the 19th day of December 1977, by the following roll call vote: AYES: P. Alexander J. Maass R. Huber K. Kuttel P. Sutton .— NOES: None , ABSENT: None , TRUCKEE-DONNER PUBLIC UTILITY DISTRICT By Pat Sutt n, President ATTEST: Clerk Thereof