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HomeMy WebLinkAbout1978-01-16 Min - Board C'/ JANUARY 16, 1978 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by the President in the District office at 7: 13 P.M. ROLL CALL: r--� Directors Huber, Kuttel , Mass and Sutton were present. Director Alexander l was absent. EMPLOYEES PRESENT: A. Milton Seymour, General Manager,and Susan Craig, Executive Secretary, were present. CONSULTANTS PRESENT Due to bad weather conditions, District Counsel Grumer and District Engin- eer Cook were not present. CORRECTIONS AND APPROVAL OF MINUTES It was moved by Director Maass and seconded by Director Huber that the minutes of the Special Meeting of December 5, 1977, be approved as corrected. ROLL CALL: Director Huber, aye; Director Kuttel , aye; Director Maass, aye; Director Sutton, aye. The Board discussed the minutes of the Regular Meeting held December 5, 1977; it was decided that further correction should be made to the minutes after clarification from Dan Cook as to the time span of 2.6 gallons of allow- able leakage in testing the Truckee River Pipeline Crossing. A motion was made by Director Kuttel to approve the minutes of the Regular Meeting of December 5, 1977, as corrected. Motion seconded by Director Maass. ROLL CALL: Director Huber, aye; Director Kuttel , aye; Director Maass, aye; Director Sutton, aye. ,�.. Director Huber moved to approve the minutes of the Regular Meeting of Dec ember 19, 1977, as corrected. Motion seconded by Director Kuttel . ROLL CALL: Director Huber, aye; Director Kuttel , aye; Director Maass, aye; Director Sutton, aye. Director Huber moved to approve the minutes of the Special Meeting of Dec- ember 27, 1977, as corrected. Motion seconded by Director Maass. ROLL CALL: Director Huber, aye; Director Kuttel , aye; Director Maass, aye; Director Sutton, aye. PREPARATION OF MINUTES President Sutton asked for suggestions from the Directors relating to minute preparation by the new executive secretary. Director Huber stated that she would like the minutes to be complete enough so that an uninformed person would know what had occurred at the meeting. Director Maass stated he would like to see consistency in names and requested that each of the Board members be presented with a final copy of the minutes for their retention. BILLS FOR BOARD APPROVAL AND STATEMENT OF GENERAL FUND Two bills were presented to the Board for approval . Director Maass moved that the bills be approved and paid. The motion was seconded by Director Huber. ROLL CALL: Director Huber, aye Director Kuttel , aye; Director Maass, aye; Director Sutton, aye. Mr. Seymour advised that the staff would be working on the budget during the following week. Director Maass asked what the District's total investment in the Local Agency Investment Fund is at the present time. Mr. Seymour advised that the total is 3/4 of a million dollars; this includes Restricted Funds in the amount of $340,000, the refund in the amount of $166,000, and $250,000, General Fund. Mr. Seymour advised that he prepared a preliminary estimate of expenses j for the Water Department; after a thorough examination, including the $21 ,000 repayment for the FmHA, the Water Department came up requiring an income of $373,000. The District's projected income, unless rates are changed, is $255,000. Mr. Seymour indicated he took the total projected payroll for 1978 -1- 0-1 and separated what was truly Electric - the line crew - took two water mens' wages and split the balance of all the other employees - 1/3 to Water and 2/3 to Electric. On that basis he found the payroll for the Water Department for the year was approximately $140,000. In 1977 the District spent $58,000 in pur- chased electricity for the Water Department. When these two figures are added together, the amount is up to $190,000; this figure covers just two items. There are other expenses to pay for such as trucks, payroll expense, fringe benefits and maintenance materials. If the estimates are correct, there would be a large deficit. President Sutton noted that expenses in the District have gone up; payroll is considerably higher than it was a year ago - several new staff members have been added. Mr. Seymour noted that economic activity in the District has increased tremendously. This activity increase has led to increased revenues; more electricity being used, more water being used, more connections, etc. He noted that during this past summer the District's revenue did not decline as much as in previous summers. The difference between summer and winter revenues hasn't been as marked as in the past, but winter revenue peaks haven' t been as high. President Sutton indicated that she felt that one thing that might have made a difference is that District billings are more current than they were a year, or even six months ago. Mr. Seymour noted that the District' s biggest current probelm is not the computer, but the meter reading; access to the meters in some instances is impossible. President Sutton called to the attention of the Board that, respecting the General Fund, the District has collected over $46,000 in Standby Revenues , which is more than half of what was expected. Mr. Seymour noted that this amount had been collected since the last Statement of General Fund. REVIEW OF OCTOBER FINANCIAL REPORT Director Huber had a question respecting the Water Department maintenance expenses in the amount of $10,000 (1/3 of the year-tO-date expenses) . Mr. Seymour stated that the large expense was caused by numerous line breaks during the construction of Pacific Telephone's Underground Project. Mr. Seymour further stated that the bookkeeper has been collecting all charge tickets which will be billed to Underground Construction Company with a copy being forwarded to Pac- fici Telephone. Director Kuttel noted that some paving and drainage work had yet to be completed. President Sutton asked about customer account expenses noting that there was a substantial increase over the same month a year ago. Mr. Seymour in- dicated he thought perhaps it was because of increased employee expenses. President Sutton noted that there was some error in the interest on the loan which had not been adjusted as yet, and some adjustment on outside ser- vices for water; the report shows as being less than September by approximately $500. Mr. Seymour noted that in 1976 the District had a $6,000 credit; in 1977, a $519 credit. This indicates the District paid Cook Associates and was then reimbursed by some other party. President Sutton noted that, in the Electric Department, maintenance, op- erating, and customer account expenses were reported to be much higher for the month. Mr. Seymour commented that the customer account expense is up $3,500 for the year compared to 1976, but maintenance expenses are up almost $20,000. President Sutton indicated she felt the District needed some analysis. (Director Huber noted that part of the Electric and Water total is the Undergrount Construc- tion Company, so the year to date total may not fully reflect the Electric expenses.) Mr. Seymour noted that $19,000 or $20,000 was for that one item. Director Huber recommended that the Electric and Water totals not be com- bined. She felt Electric year-to-date for 1976 and Water year-to-date for 1976 columns were necessary. President Sutton agreed, adding that they should be listed on separate pages. Director Kuttel asked if there was a limit to the amount of surplus money in the District, noting that 10% surplus in this territory was not too much. He indicated he would prefer 20% surplus that would be available when needed. Mr. Seymour advised that there was no limit other than for R.E.A. loan pur- poses. Mr. Seymour noted that operating expenses for the Water Department for the year would be approximately $267,000; some of the $10,000 will be wiped out, so the figure won' t be as bad as projected. -2- �3 COMMITTEE REPORTS The Bylaw Committee reported that a review of the proposed Bylaws was an agenda item for this meeting. Director Huber, reporting for the Insurance Committee, advised that, after conference with Glen Stice, it appeared that the District would be able to elim- inate unnecessary insurance that had been carried for years. President Sutton, reporting for the Water Committee, noted that the Commit- tee had met with Dart representatives on January 12, 1978 and another meeting had been scheduled for February 2, 1978. SPECIAL BUSINESS : OSSIAN BUTTERFIELD, T.T.S.A. - REVIEW AND DISCUSSION OF ARTHUR D. LITTLE, INC. STUDY FOR TAHOE-TRUCKEE SANITATION AGENCY - "EVALUATION OF INSTI- TUTIONAL ALTERNATIVES FOR THE PROVISION OF COMPREHENSIVE SEWERAGE & WATER SERVICES IN THE TAHOE-TRUCKEE AREA" Mr. Butterfield of T.T.S.A. appeared and made the presentation respecting the Arthur D. Little study in place of Ken Foster, Administrative Assistant, who was unable to be present. Mr. Butterfield reported as follows: Upon receiving the grant, the TTSA Board members, representing all five districts, discussed ways of optimizing or making the most efficient use of resources in the provision of sewer services. North Tahoe and Tahoe City were originally the leaders; there was talk of merging North Tahoe Public Utility District and Tahoe City Public Utility District. They decided they didn' t want to go forward without looking into the entire area and seeing how any- thing would affect the five member districts of TTSA. Their thought was that they were providing sewer service; one agency was treating it, transporting and disposing of it, and five other agencies were collecting it. . .all using the same kinds of people and equipment. They thought there might be a way of reducing costs. In those days it was called a consolidation study - a naughty word with districts, so it became an institutional arrangement study, which means looking at all ways of doing things. It was primarily dreamed up as a study of sewer services. As the study got underway, it became apparant that they could not only focus on sewer services because the districts had other services which they provided; they had to look at what the cost savings would be to the taxpayer. The study was enlarged to look at the services that were provided by all five districts focusing on how to solve the sewer problem and what impact that solution would have on the other services. After well into the study, it became apparant that they couldn' t save a lot of money look- ing only at sewer services; they had to look at water services also. A number of alternatives were dreamed up to try to satisfy the members on the TTSA Board - alternatives they would particularly like to look at, basically looking at consolidation of all sewer services, then consolidation of all sewer and water services, and then, other ramifications of some of the side issues with and without Squaw Valley County Water District and Alpine Springs County Water District. The Board tried not to be too comprehensive because it might go on forever with all the different possibilities. They focused primarily on water and sewer services. The Arthur D. Little report has tried to do this. Regarding the water and electricity business, the Board looked at the Truckee Donner Public Utility District; it was apparant that as far as the members of the TTSA Board were concerned, it wouldn' t make that much differ- ence whether Truckee Donner Public Utility District consolidated with the TTSA water business or not. They left that to a later decision. r-- In Truckee, if TTSA does consolidate sewer services, Truckee Sanitary District would loose its identity, and presumably TTSA would need representa- tion from Truckee; possibly the TDPUD would be asked to be represented on the TTSA Board. It was concluded that TTSA could, in fact, save some money if they con- solidated water and sewer services in all of the five districts into one agency. The recommended governmental institution would be a community services district or something of that nature. It looked as though money could be saved; however, they tried to look at other impacts - the reliability or satisfactory service rendered by such an agency. They looked at the political considerations; one of the major controversies that developed was that people like to have local govern- ment. The other focal point, being that even if TTSA could regionalize into one agency to provide all water and sewer service, it wouldn' t be that big, and there would still be local government. -3- i 8� These ideas were presented, and now the districts are trying to decide if the cost savings that were presented in the report are material to the non-economic considerations. Where it will go from here isn' t known. Nothing can be done in changing the structure of the districts through consolidation until the people have their say in the matter. None of the Boards that are represented on the TTSA Board want to make the first move; perhaps some cit- izens ' committee will intervene and try to publicize the concept of consol- idation. It's a very complicated report - very difficult to read. Director Kuttel advised that he had read the Arthur D. Little report and come to a conclusion. He stated that he felt the Truckee Sanitary District and the Truckee Donner Public Utility District should be merged. Mr. Butterfield noted that TTSA would be placing meters on all five districts; they will have readings from all five areas, and will then be able to see where to go from there. Director Kuttel commented respecting water meters. He indicated he would like to see how much is pumped out per district by way of source meters. Director Maass, referring to Appendix A, page 94, noted that Little put a disclaimer in the survey; he asked who the twelve people were that were interviewed. Mr. Butterfield advised that lists were given by each of the directors on the TTSA Board. He indicated the list was available upon request. President Sutton advised that she previously obtained the list from Ken Foster. Director Huber verified with Mr. Butterfield that Truckee is the only area with separate water and sewer entities. She expressed concern respect- ing Truckee Sanitary District and their heavy administrative cost compared with the other districts. Mr. Butterfield noted that Tahoe City Public Utility District looked --, better with their current costs because they' re bigger. Alpine Springs County Water District was worst cost-wise, then Squaw Valley County Water District, then Truckee. TTSA has taken the current costs and accepted them at face value. Director Huber noted there was a disclaimer for the extra work that had to be done because of the flooding. Mr. Butterfield advised that it was eliminated; the cost on infiltra- tion correction was sorted out as not a normal , recurring cost. Mr. Butterfield noted that the reason they were very picky about start- ing off with the sewer services and enlarging it only to certain water ser- vices basically was that they didn' t think it was their business to look at everything. The TTSA Board felt it was within their realm to try to come up with the most efficient, most economical , most satisfactory way of provid- ing sewer services. It was primarily oriented towards sewer services and the only reason they looked at any other type of service was because it was affect- ed by the study. Director Kuttel questioned the two billings received from TTSA prior to processing any sewerage, and asked what was being done. Mr. Butterfield advised that the TTSA plant is operating, but they are not yet processing sewage - they are operating on water. The plant will .--, continue to operate on water until such time as they can see their way clear to assume the risk of putting sewage into it. They are withholding $1 ,000 damages per day for this reason. They expect to have money returned by the contractor. TTSA would rather take the time now, and spend the money to operate on water than take a chance of polluting something. They want to make sure everything is working properly. As soon as they can see their way clear to accept the risk of taking real sewage and being able to process it all the way through and dispose without polluting, they will do so. Director Kuttel asked, when sewage is dumped on the TTSA field, what happens when that field is saturated? Where does it go in a heavy runoff year, and what happens to downstream users? -4- 4s President Sutton asked what would happen to our groundwater table in Martis Valley. Mr. Butterfield noted that effluent from the plant would be of ''drink- ing water quality" - it will meet the standards (drinking water quality) of both states. He advised it would be of "drinking water quality" because the state health people would not say it was "drinking water" - there may be one virus that gets through the system. The processes that TTSA uses are calcu- lated to kill all viruses and all bacteria; all of the constituent levels will be below those required for drinking water. r-- Mr. Butterfield advised that, insofar as going into Martis Valley was concerned, when TTSA made their percolation permeability tests, there was a tremendous factor of safety, a very rapid drop to an aquifer, about 80 feet deep. Y It very quickly drops down to groundwater, then moves with the ground- water to the confluence of the Truckee River and Martis Creek. The calcula- tions that were made indicate it would move very rapidly towards the River; there would be a mound directly under the well that would build up to with- in maybe 40 feet of the surface, but then it would move towards the River. There is an underground barrier in almost all areas that TTSA looked at in } the Martis Valley; so, the water they' re putting into the soil will not reach any reservoirs that are now being used. About 80 feet from the surface there is a clay layer that separates the surface groundwater from the source j of water that is used for water supply; they will not mix. The water they put in will follow the surface water in the top surface of the ground. All of the water wells that are producing are produced from another aquifer. Mr. Butterfield indicated that TTSA's main objection to having a pipeline running along the Truckee River with raw sewage was that it is one of the most active seismic zones known in California; they did not want to accept the risk I of all that raw sewage adjacent to the River, where there might be an earth- quake. i ­Oi recto-r.-Kut-tel-,noted he-would like to see the TTSA plant prove itself for a number of years before any consolidation. Mr. Butterfield advised that he thought the TTSA Board members felt the same way. Mr. Butterfield noted that he thought if the districts consolidated, the work forces would continue to work out of their present locations, so there would still be a point of contact and a maintenance crew that reported to work locally. Some things such as TV cameras and flushing trucks could be pooled and made available as needed, which would result in a savings. President Sutton noted two factors which she considered interesting about the list of persons interviewed; one, the people were heads of other agencies, which historically, in Truckee, had been opposed to any consolida- tion of anything. Second, there were no women on the list, which she felt was rather prejudicial . President Sutton expressed concern relating to the fact that the Truckee Donner Public Utility District was not properly con- suited by the TTSA about the study, which would involve the TDPUD. It in- volved TDPUD's services and resources. Further concern was expressed by President Sutton regarding studies being done in the area at the cost of $60,000 for changes in institutions in the area. She noted an awareness that the interim manager of the TDPUD participated in the interviews, but did not know whether he participated as a member of the community or as the interim manager of the District. r-. Mr. Butterfield noted the reason the TDPUD wasn' t more fully involved was because =the -study started with the sewer business and only got into water sec- ondarily. The TDPUD manager was contacted as the Manager of the District, and not as a private citizen. President Sutton noted that there was some breakdown in that the TDPud Board was not informed that the study was underway; however, indicated belief that TTSA had the responsibility to make sure that the agencies they were surveying were made a part of the study. She noted there were two recommendations in the study; one believed to be the formation of a community services district, and the other being the expansion of TTSA to take over the functions of sewer and water service. Mr. Butterfield confirmed President Sutton' s belief, but indicated he did not know where the TTSA Board was heading. Legislation would have to be revised -5- S� to include services other than sewer. TTSA has no charge to do anything with water at this time. They have discussed this versus the community services district which has the disadvantage of having the Board of Directors elected at large; they would not like to see this happen because it is possible the people would not be properly represented. In either case, they would probably have to go for special legislation, whether they would call it a special agency or a community services district. They would probably split the area up into districts and have an election by district. At the present time, they are dealing with individual Boards of Directors; he doesn' t think anythinq will come of this until the people qain an understandinq, and then have an advisory election askinq the people if they would like to see directly elected repre- sentatives, if they would like to see consolidation, if they would like to save money, and if they would be willinq to give up their parochialism to something larqer if they could save money and still have representation. Director Maass expressed concern respectinq the use or non-use of the Truckee ponds after the TTSA plant goes on line. If the ponds, not only in Truckee, but other districts as well , are not being used, would there be a need for separate agencies? Mr. Butterfield advised that this was the real reason for the study. Right now, all the districts are collecting, treating and disposing - also they have their own discharge requirements. TTSA will take over the major portion of most of their budgets; they will be left with just the collection systems. Once the system is in being, those skills and that equipment used presently by all five districts, can be furnished on a pooled basis to work centers to take care of the work. He feels that is where cost savings is possible. Director Kuttel noted that the question came up as to whether the ponds would be useful in an emergency, and Lahontan advised Truckee that they would have to abandon the ponds. Lahontan advised that the ponds, in case of a flood, would not help a bit. Mr. Butterfield stated that this was correct. Lahontan informed Truckee Sanitary District that they should get out of their ponds as soon as TTSA goes on line. Truckee Sanitary District has appealed this order; they would like to keep the ponds so that they might use them later for improvements and to increase the capacity available to the TSD. That appeal is at Lahontan, and scheduled for an April hearing. Mr. Butterfield noted he would like to see the Truckee ponds retained for a year in an empty status; in case of emer- gency, they could be used. TTSA hopes they will have no need for them; they have storage for five days emergency storage - this would be an extra safety valve. The Board discussed the TTSA service connection charge for the PUD house with Mr. Butterfield. Mr. Seymour noted that the house was scheduled for re- F moval , by Board action, in the near future. Mr. Butterfield advised that this charge would be removed from the District's bill . f Director Maass questioned why the TDPUD was assessed at a different i rate than residential services. Mr. Butterfield stated that TTSA charges cover administration, mainten- ance, and operation. The taxes are used for administration and debt retire- ment. TTSA has indebted everyone in this area for 42 million dollars which is being paid off annually through a 30t tax rate - 712t for administration, and 221t for the bond. TTSA has maintenance and operation charges which are collected by a service charge. Connection fees are used for major repairs, rehabilitation, etc. When TTSA assigns service charges, they take the total amount of cost per year divided by the number of people. They get $39.00 --, per dwelling. That assumes they are also getting other monies from the tax rate. In order to make up the difference, they have a larger service charge for those people who don' t pay taxes so that it comes out to the right total amount of money. Director Huber noted that the problem with this system is that the people are already paying either taxes or levies to public entities in order to support that public entity, so the people are paying twice. The cost to them is being increased. Mr. Butterfield noted that "x" amount of dollars have to come from some- place. With the 30t tax rate and the service charges, the way it' s broken out, j -6- I if TTSA didn' t collect taxes from the other agencies, TTSA would have to raise everybody's service charge. TTSA thought a combination of taxes and service charges would tend to equal out the problems that arise when there is a large house owned by a "rich guy" with five bathrooms vs . a small house owned by a "little fellow" who only takes a bath once a week. By having the combination of taxes and service charges the guy with the gib house is charged more than the man with the small house. There being no further questions or comments, Mr. Butterfield was thanked by the Board for appearing and making his presentation, and also for providing copies of the Arthur D. Little report to the District. MANAGER'S REPORT STATUS OF CUSTOMER REFUNDS DUE TO SIERRA PACIFIC REBATE Mr. Seymour advised that work was still being done on turning the meter pages and computing the usage figures, which all has to be done manually for each subscriber. According to Vartron Corporation, the company preparing the computer programming for the refund, the District should have the com- puter program by the end of this month which means that those people who are to get checks will get them next month; those who will have credits coming on their bill will get the credits either in February or March depending on when their meter is read. Kenneth J. Seeds, Principal Economist, of R. W. Beck and Associates, con- 1978, that the rate refund from Sierra firmed, by letter dated January 6, Pacific Power Company is correct. The refund was not as much as expected, he stated, due to variances in the fuel adjustment and the interest calculations. A copy of Mr. Seeds correspondence has been attached following these minutes. Director Maass stated that two former customers no longer living in the District had expressed concern to him regarding their refund. Mr. Seymour advised that there are approximately 3,500 existing, connect- ed customers presently in the District. These customers, provided they were connected between December 29, 1975 and October 31 , 1977 or any part thereof, will receive a refund (by way of a credit on their billing) . Former customers will receive a check by way of mailing to their last-known address. The Dis- trict will advertise in various California newspapers requesting that former TDPUD customers notify the District of their current address and their prior service address in Truckee. Mr. Seymour noted that there will be approximately $126,000 of the $166,000 refunded due to the withholding of expenses. The refund to a con- tinuous customer through the period of December 29, 1975 - October 31 , 1977, will approximate slightly less than an average month' s billing. UPDATE ON STORM DAMAGE Director Maass asked if the crews would be running the lines this summer checking for- trees, noting that he felt it would be wise to do so. Mr. Seymour stated that the District may possibly employ someone to do this. Mr. Seymour advised that the storm on the 4th and 5th of January caused two major outages in the Donner Lake and Prosser Lakeview Estates areas. Donner Lake area was out continuously. The Prosser Lakeview area was on and off. ,.� The Prosser Lakeview Estates outage was caused by a tree-top falling into the lines. Power to the area was restored on Friday morning, but, be- cause of a branch lying across the power lines that was not detected on Fri- day, went out again on Saturday morning. In the Donner Lake area, the problem was a short in a transformer located on Moraine Drive. The fuse was defective; it blew but didn't show that it was blown. It took the crews several hours to locate the defective fuse. There was a brief outage on January 15th in Prosser Heights due to heavy snow on a branch coming down on a line. -7- d8 ALTERNATIVES FOR AFTER-HOURS CALL-OUT PROCEDURES Director Huber indicated that she had information on a "beeper" service in Kings Beach. Mr. Seymour advised that he would check into this service and its practicality compared to the other alternatives. The merits of an answering service were discussed. At Mr. Lynn Duffy's request, the present procedure for after-hours calls was explained to the audience. A fourth telephone line was discussed. Mr. Seymour advised it would not be in rotary but could be used primarily for outgoing calls, thus free- ing up the other lines for incomming calls. ^� STATEMENT OF GENERAL FUND: EXPLANATION OF ODD AMOUNTS REPORTED IN STANDBY REVENUES The odd amounts reported in Standby Revenues are a result of penalties being assessed on property owners by the County in Standby Revenues received by the County. PRAISE OF DISTRICT LINEMEN Director Maass noted for the record that he thought it was remarkable that the District was without power for such a few hours when there are only five line crew men. TWO-WAY COMMUNICATION BETWEEN LOCAL AGENCIES Mr. Seymour advised that a letter had been written to the Highway Patrol , Truckee Sanitary District, U. S. Forest Service, Nevada County Sheriff's De- partment, Cal Trans, and Truckee Fire Protection District following up on Fire Chief Copeland's recommendation that each of the agencies consider in- stalling in their vehicles a device known as a "radio scanner;" two way com- munication between the agencies would then be possible. If enough interest is shown through response from the other agencies, a meeting will be scheduled. FINANCIAL REPORT: BREAKDOWN LISTED UNDER"P.U.D. HOUSE" CATEGORY Mr. Seymour noted that the Balance Sheet dated October 31 , 1977 repre- sented $21 ,076 in land donated to the District and not presently in use. After review of the list of parcels which make up the $21 ,076 amount, it was noted that some of those parcels do have PUD facilities on them. Mr. Seymour suggested the Dist'ri'ct 'have ;the auditors, this year, straighten this matter out. Director Maass requested that Mr. Seymour notify the auditors, in order to expedite matters, that the District will be questioning them. Mr. Seymour indicated that he has already done so. REPORT RE ADEQUACY OF INSURANCE REQUIREMENTS OUTLINED IN DISTRICT POLICY FOR LEASE OF LAND Mr. Seymour stated that he believes that the $1 ,000,000 bodily injury liability limit and $200,000 property damage liability limit established in the proposed Resolution Establishing a District Policy on the Lease of Dis- trict Land are more than adequate. The District's umbrella liability policy should cover any District liability in excess of these amounts. Inasmuch as the District will be leasing land only, there is little likelihood that lia- bility claims against the lessee of District property can be extended to the District. President Sutton suggested that Mr. Seymour's beliefs be confirmed by the District Counsel . UPDATE ON STANDBY ORDINANCE IMPLEMENTATION The Standby Charge collections have gone fairly well , Mr. Seymour re- ports, although he did not have an exact figure of the amount collected. The majority of Standby Charges have been collected. The District has re- ceived some protests, some which are valid and are being investigated. (These include protests of Standby Charges against property which is not suitable for building and could never use the facilities.) Mr. Seymour ad- vised that in prior years, when the County was collecting Standby Charges as a part-of l axes, the County was getting away with collecting on unbuild- able property. Other protestors are simply against the concept of Standby Charges. (This type of protest, assuming the Standby Charge is valid, will be turned over to the County for collection on the tax rolls.) -8- dr 'OR REPORT REGARDING SIERRA PLANNING ORGANIZATION'S NOTIFICATION AND REQUEST RE NIGHT LIGHTING FOR MILTI-USE BASEBALL FIELDS (TWO) Mr. Seymour reported that the Board of Directors had received Sierra Planning Organization' s request for comment on the Truckee Donner Recreation and Park District's proposed night lighting for two baseball fields. The PUD is involved in this proposed project only to the extent that the District furnish electricity for lighting. Inasmuch as the fields will be lighted primarily in the summertime after 7:00 P.M. , the extra load created by this project will have no effect on the District' s daily peak loads, and thus will r-- not effect District capacity. The energy used by the Recreation and Park District will be paid for by them. The only Recreation and Park District facility that is currently getting free electricity is the tennis court fac- ility; this was done in earlier years by joint agreement between the two districts. Mr. Seymour advised that, based on the PUD's interest in loan management and most efficient use of our electric plant, it would be his recommendation that the Board direct him to respond to the Sierra Planning Organization with a favorable comment. After the matter was discussed by the Board and review of the notifica- tion received from the Sierra Planning Organization was accomplished, it was decided that no response was required unless the District had objections to their plan. REPORT & RECOMMENDATION ON SUPPLEMENTAL FINANCING FOR R.E.A. LOAN Mr. Seymour reported that following the Special Meeting held on January 10, 1978, the staff continued to meet with the R.E.A. and R. W. Beck and As- sociates' representatives. The net result was that, based on the two-year work plan prepared by R. W. Beck, the total cost providing for the necessary work to be done in the 1977-78 period is approximately $416,000. Of this amount, $300,255 is eligible for partial R.E.A. financing; $58,255 can be derived from existing R.E.A. loan commitments; $169,000 is available on the basis of a new loan. $73,000 would have to come from District revenue bonds; $115,745 could come either from District revenue bonds or from other sources, such as the General Fund. R. E.A. Cost Estimates and Loan Budget for Electric Borrowers has been made an attachment to the Manager's Report which follows these minutes. Mr. Seymour noted that additional information is required for the loan application including a brief environmental statement, letter to, and re- sponse from, the State Historic Preservation Office, Board resolution accept- ing the construction work plan, financial forecast and power requirement study, a letter from Sierra Pacific Power Company agreeing to the increase in cap- acity for the Truckee substation, and a five-year tabulation of service in- terruptions. Mr. Seymour advised that if the Board wishes to go forward with the R. E.A. loan application, they should immediately authorize the employment of bond counsel and financial consultant, and take the necessary preliminary steps to hold a special election to obtain voter approval of revenue bonds in an amount sufficient to finance not only the present loan, but anticipated fu- ture loans for the next two to five years. MISCELLANEOUS EMPLOYEES' PAY DATE CHANGE r-- Mr. Seymour reported that, because of a previous resolution of the Board changing pay dates from the last day of the month and the 15th of the month to the 3rd of the month and the 18th of the month, pay for the final two weeks of December 1977 was made in January, 1978. This causes undue complications in the bookkeeping and affects various quarterly reports; also, it results in a- slight increase in employees' taxes. Mr. Seymour recommended the reso- lution regarding paydate change be amended to provide for the last pay date of a quarter to be on the last working day of that quarter. (Resolution 77-10) The Board requested that further information as to the complications created in the Bookkeeping Department be provided to them for review. -9- 90 WEST RIVER STREET ASSESSMENT DISTRICT FUND Mr. Seymour requested that the Board authorize a temporary transfer of General Fund monies to the West River Street Assessment District Fund to enable the redemption of interest coupons on the West River Street Assess- ment District Bonds. He noted that the shortage in the fund occurred because of delinquencies in the assessment payments. President Sutton stated that she felt that the District had an obliga- tion to the people of the District to collect the money due. Mr. Seymour advised that the matter of collection had been turned over to Mr. Grumer for action. President Sutton requested that a review of this collection matter be placed on the agenda for Executive Session. Director Maass moved that $1 ,300 be transferred from the General Fund to the West River Assessment District Fund to enable the redemption of the interest coupons. The motion was seconded by Director Huber. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. CORRESPONDENCE WITH SIERRA PACIFIC POWER RE PROVIDING NEW SERVICE Mr. Seymour advised that Sierra Pacific requested temporary electric service to a 20-acre parcel adjacent to Ponderosa Palisades South. Sierra Pacific is having difficulty serving this parcel because the best route to the parcel is blocked for lack of an easement; the property from which the easement must be obtained is currently in escrow and it is not possible to obtain the necessary easement. He further advised that Sierra Pacific will construct a"single span of high voltage line, mount a transformer (provided by the TDPUD) , and run the underground service connections. The District will make the high voltage connections to the lines, provide the meters, pro- vide the distribution transformer, and collect the revenues. Mr. Seymour noted that he has agreed to do this, charging Sierra Pacific only for out-of-pocket costs for making the high voltage connections. The transformer and meters would be returned to the District when Sierra Pacific takes over the services. There would be no connection charge to the customer. President Sutton stated that she thought the District should finalize this matter by way of a formal written agreement with Sierra Pacific Power since this is a several-year commitment. Mr. Seymour stated that he felt this would not be economical . Director Kuttel stated that he felt the District should be open-minded and cooperative in assisting Sierra Pacific in this matter. Regarding a formal contract or agreement, Director Kuttel stated that he felt the let- ter written by Mr. Seymour would be sufficient. President Sutton stated that she wanted assurance that the District's actions would be recorded for future reference. RECOMMENDATION TO ADJOURN MEETING Mr. Seymour recommended that the remainder of the meeting be adjourned until a later date. Director Kuttel concurred and Director Huber stated that it would be difficult to go forward with the meeting since the District Counsel and District Engineer are absent. The recommendation was not acted upon. UNFINISHED BUSINESS REVIEW AND DIRECTION RE NOVEMBER 4, 1977 CORRESPONDENCE FROM R. W. BECK & ASSOCIATES RE CONSULTING SERVICES WORK ORDER Director Huber stated she felt that, since Mr. Grumer had objections regarding this matter, it be tabled until the next Regular Meeting. Director Maass concurred. President Sutton noted that she thought Mr. Grumer would like the Directors to review the contract that was attached to the work order letter of November 4th, and stated the item would be placed on the agenda for the next Regular Meeting, February 6, 1977. REVIEW & DIRECTION RE REVISION IN COMMERCIAL ELECTRIC RATES President Sutton noted that this matter was included on the agenda because she made an error on the agenda for the last meeting having to do with what the j -10- 91 Board' s direction was based on the motion that was passed at the December meeting; the agenda item at the last meeting was on residential rates only. The Board has not stated since then what they wish to do. President Sutton stated that she believed that the Electric Committee has recommended a re- vision of commercial rates according to the R. W. Beck & Associates study. Director Huber confirmed this belief. Mr. Seymour noted that the GS3 rate would be eliminated entirely; the changes for any commercial customer would be minimal . Overall , the PUD would come out receiving approximately the same amount of revenue. Mr. Seymour recommended that an ordinance be prepared adopting the new commercial rates. .—. Director Maass moved that the Board direct Mr. Grumer to draw up an ordinance incorporating the GS1 and GS2 recommendations of R. W. Beck and that a Public Hearing be held at 7:30 P.M. on the date of the next Regular Meeting. The motion was seconded by Director Kuttel . ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. SO MOVED. DIRECTION RE SPECIAL MAILING TO CUSTOMERS RE CHANGE IN RESIDENTIAL ELECTRIC RATES Mr. Seymour advised that it would cost approximately $500 to implement a special mailing to all of the District's customers. He indicated he was not aware as to whether or not the District possessed a bulk mailing permit but ad- vised that the District should be able to obtain one. President Sutton stated that she felt it would be in the District's interest to have a mailing to the customers that would inform them of the rate change. Director Maass moved that the Board direct the Manager to prepare a special mialing to the customers regarding the residential electric rate changes and that the Manager consult with the Board President as to the wording of the letter. The motion was seconded by Director Huber. ROLL CALL: Huber, aye; Kuttel , aye; Maass , aye; Sutton, aye. SO MOVED PUBLICATION OF ORDINANCE 7801 r The Board discussed the incorrect wording in Ordinance 7801 which was published in the Sierra Sun. President Sutton advised that the tapes of the January 4, 1978 meeting had been listened to in order to verify that the or- dinance had been adopted in its proper form which included the word "provision'' in the statement, "The existing fuel charge and California energy surcharge provisions shall remain the same." President Sutton advised that she had communicated with Mr. Grumer and advised him of the circumstances; he indicated that, as long as the Board's intent was to include the word "provisions," there would be no problem. FARMERS HOME ADMINISTRATION LOAN/ GRANT Mr. Seymour advised that Dan Cook contacted him regarding the FmHA Letter of Conditions and status report. Mr. Cook has prepared, and the Dis- trict will receive before the next meeting, a complete review of everything that is covered in the Letter of Conditions plus all additional things that need completing (similar to the checklist he previously prepared, but it will state when matters have to be taken care of and by whom) . The listing will include the Board's intention to adopt, by resolution, the provisions of in- tent of Section XI . President Sutton noted that a mailing had been received by each Director at their home address from Mr. Cook which included a copy of Sec- tion XI . She indicated it dealt with some of the things that would be done with the FmHA money and the water tariff including an energy charge, standby charges, meter programs, fire hydrant ownership, fire protection service, im- provement district formation, annexation of land, water rights and leak maps. Mr. Seymour stated that even though the engineering has been approved for the loan/grant, FmHA will not allow the District to go to bid unless the Board acts on Section XI . President Sutton stated that some of the FmHA requirements related to the on-going ability of the District to cope with problems; some of the items are to assure that the District is solvent and performs properly. She request- ed that if there is any indication that action should be taken prior to the next Regular Board Meeting concerning FmHA matters Mr. Seymour advise her of that fact; otherwise, FmHA Loan/Grant items are to be placed on the agenda for February 6, 1978. -11- 9� PUBLIC HEARING ON PROPOSED ORDINANCE UPDATING DISTRICT COMPLIANCE WITH CALIFORNIA ENVIRONMENTAL QUALITY ACT The Board discussed the preparation of proposed ordinance updating Dis- trict compliance with California Environmental Quality Act, the draft having been submitted by Mr. Grumer at the last Regular Meeting. The Executive Secre- tary was asked to prepare the ordinance for presentation at the next Regular Meeting at which time a Public Hearing will be held at 8:00. RESOLUTION READVERTISING FOR BIDS ON COPIER The resolution not being available, this matter was carried over to the Regular Meeting of February 6, 1978. RESOLUTION DECLARING WATER PIPE SURPLUS The resolution not being available, this matter was carried over to the Regular meeting of February 6, 1978. RESOLUTION CALLING FOR BIDS ON WATER PIPE The resolution not being available, this matter was carried over to the Regular meeting of February 6, 1978. MISCELLANEOUS Letter Respecting Grand Jury Report Director Maass noted that he had heard the letter respecting the Nevada County Grand Jury Report read on the local radio station several times on today's date. Old Will-Serve Letters Director Huber noted that Mr. Grumer had advised the Board to review the old will-serve letters; she stated that she thought this should be done and acted upon at the next Regular Meeting. District Counsel Grumer is to be directed to report regarding this matter at the February 6th meeting. President Sutton noted that the will-serve problem was referred to the District Engineer and District Counsel months ago. The Manager was re- quested to report at the next meeting as to ways a fee could be charged for will-serves. State vs. Dart et al . - Correspondence from McDonough Dated 1/11/78 President Sutton read correspondence from Mr. McDonough directed to Mr. Seymour regarding the State vs. Dart et al . , dated November 11 , 1978. Director Maass moved that the Board direct the Manager to write a letter to Mr. McDonough stating that he go forward with the filing of a stip- ulation that the case (State vs. Dart) not be required to be brought to trial within the five-year period. The motion was seconded by Director Huber. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. SO MOVED. President Sutton requested that a copy of Mr. McDonough' s letter be attached to these minutes. Application to Appropriate Water from Southside Springs President Suqton requested that a copy of the Application to Appro- priate Water from the Division of Water Rights dated December 30, 1977 be- come an attachment to these minutes. Letter Received from George Conant President Sutton inquired respecting a letter received by the Board approximately one month ago from George Conant of Bookman Edmondson concerning information needed to pursue his investigation (re Tahoe Donner Water System construction adequacy) . Mr. Seymour advised that Mr. Conant had received some of the necessary information from Mr. Marron's office. Mr. Marron' s office, last week, request- ed one set of as-built drawings for the water system; the District is forwarding -12- the set which will be returned after review. Truckee Fire Protection District Board Meeting President Sutton advised that Mr. Quintana had appeared at the Truckee Fire Protection District Board meeting on January 14, 1978 and indicated he did not know what action the TDPUD was taking respecting the Line Extension Agreement. (This information was learned through word-of-month) . The letter from Mr. Quintana to Mr. Cook dated December 19th indicated that he had re- ceived copies of the agreement (Line Extension Agreement - East River Street) and would be .signing and returning them to the District. President Sutton stated that she felt that perhaps the TDPUD had been misrepresented. It was decided by the Board that President Sutton should listen to the TFPD tapes to determine what was actually said at the meeting. The Board discussed a statement made at the Truckee Fire Protection District Board Meeting relating to the compensation paid to TDPUD Directors for Board Meeting attendance. (This was also learned through word-of-mouth) . Director Huber moved that if the information obtained proves to be correct, President Sutton write to the Fire Commission regarding director compensation and also setting the TFPD straight on the Quintana matter. The motion was seconded by Director Maass. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. SO MOVED. NEW BUSINESS REVIEW AND DIRECTION RE PROPOSED ''COMMUNITY MEETING'' IN JOINT SESSION WITH TRUCKEE SANITARY DISTRICT RE CONSOLIDATION POSSIBILITIES Director Huber moved that the Manager be directed to set up a joint meeting with the Truckee Sanitary District before the next Regular Meeting; if the Truckee Sanitary District is not agreeable to a joint meeting, the matter is to be placed on the agenda for the next Regular Meeting for direc- tion. REVIEW AND DIRECTION RE SEWER ASSESSMENT CHARGES ON DISTRICT PARCEL 18-602-006 TRUCKEE DONNER RECREATION AND PARK DISTRICT ''MEADOW PARK'' FACILITY No information being available, this matter was set over to the next Regular Meeting. The Truckee Donner Recreation and Park District is to be noticed of the agenda item. DISTRICT ENGINEER'S STATUS REPORT RE POSSIBLE ANNEXATION OF TERRITORY SERVED BY TDPUD IN PLACER COUNTY: DISCUSSION AND POSSIBLE DIRECTION Mr. Seymour advised that Dan Cook had reported by telephone that he had been in touch with Dan Matulich of C.S.A. 19. Mr. Cook is now in posses- sion of maps of the area; he will report further at the meeting of February 6, 1978. DIRECTION RE POSSIBLE DISPOSITION OF MANAGER'S VEHICLE Board discussion regarding disposition of the Manager's vehicle, a 1968 Chevrolet Nova. It was determined that the value of the vehicle was probably $300. After delivery of the Subaru, a resolution declaring the Chevrolet surplus and calling for bids is to be placed on the agenda. REVIEW AND DIRECTION RE DRAFT BID POLICY Mr. Grumer not being present, this matter was set over to the next Regular Meeting. REVIEW OF PROPOSED BYLAWS This review was set over until the next Regular Meeting due to Mr. Grumer's absence. REVIEW AND DIRECTION RE EXTENSION OF TIME TO 10 YEARS ON EXISTING AND FUTURE ELECTRIC LINE EXTENSION AGREEMENTS Mr. Seymour reported that the Water System Line Extension Agreement is for 10 years; the Electric System Line Extension Policy is for 5 years. Mr. -13- 7 QJ Seymour recommended that a resolution be prepared to amend the existing elec- tric rules to increase to 10 years existing and future line extensions. So moved by Director Huber. Motion seconded by Director Maass. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Su-ton, aye. SO ORDERED MISCELLANEOUS Sanders Site Mitigation Agreement President Sutton requested that a copy of Dan Cook's letter of January 13, 1978 addressed to her regarding discussions proposed between Mr. Cook, Dr. Sharp, Don Strand, Bill Sage and Bill Nork be attached to the minutes. BOARD PRESIDENTS' AND DIRECTORS INSTITUTE President Sutton expressed interest in attending the conference in Palm Springs to be held the 17th, 18th, and 19th of February. The fee is $135 for the conference and lodging would be $37 per night. Director Huber indicated she was interested in the conference but would be unable to attend. Director Kuttel indicated a desire for President Sutton to attend the conference because this could be beneficial to the efficient and timely con- duct of Board Meetings. Director Maass moved that President Sutton attend the Board Presidents' and Directors Institute Conference and that her expenses be paid by the Dis- trict. The motion was seconded by Director Kuttel . ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. SO MOVED. Demolition of PUD House by Kwitcherkikin Mr. Seymour advised that Mr. Cook has been in touch with the Truckee Fire Protection District; the Fire Department would like to make a practice burn of the house. Mr. Cook felt this might reduce the fee charged by Kwit- cherkikin. Director Maass requested that the Fire Department not burn the house on a school day because of the diversion of the students' attention. Mr. Seymour reported that Kwitcherkikin has agreed to sign a bid document as discussed at the last meeting. PLANNING DEPARTMENT NOTICES The Board discussed notices concerning developments on Donner Pass Road and the Dolley Mansion Site. President Sutton had a query respecting Gateway Estates - she wondered whether the District had written a letter stating that satisfactory arrange- ments had been made for water service. Mr. Seymour stated that the District had written a letter quite a while ago advising that water was available but would be quite expensive. CORRESPONDENCE President Sutton advised that the District is in possession of corres- pondence from the Truckee Donner Recreation and Parks District regarding land on Highway 267 which was declared unnecessary for District use. The TDR&PD is not interested in purchasing said land. The letter has been made an attach- ment to these minutes. STATE SURPLUS PROPERTY Mr. Seymour reported that he will have a resolution prepared for the Board to consider at the next Regular Meeting which will authorize him to sign on behalf of the District and obtain surplus federal property. EXECUTIVE SESSION The President adjourned the meeting into Executive Session at 11 :52 P.M. ADJOURNMENT Following Executive Session the President called the meeting back into Regular Session at 12: 11 A.M. -14- There being no further business, Director Maass moved to adjourn the meeting. The motion was seconded by Director Kuttel . ALL AYE BY VOICE VOTE. SO ORDERED. The President adjourned the meeting at 12: 11 A.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT B Y V - James A. Maass, President Approved Signed Susan M. Craig Executive Secretary r-- -15-