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HomeMy WebLinkAbout1978-03-06 Min - Board REGULAR MEETING MARCH 6, 1978 i The Regular Meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by the President in the Truckee Tahoe Unified School District Administrative Building Board Room at 7:05 P.M. ROLL CALL: Directors Huber, Kuttel , Maass, and Sutton were present. EMPLOYEES PRESENT: A. Milton Seymour and Susan Craig. CONSULTANTS PRESENT: District Counsel Grumer was present. District Engineer Cook was not present at the start of the meeting, but was expected. OTHERS PRESENT: Bonnie L. Seymour, Lynn M. Duffy, Terry W. Grillo, Marigre Y Fish, Richard Colby, Lawrence P. Young, Timothy Ward, Richard V. lorns, Katie Boyd, Richard Boyd, Don Strand, Bob Sutton, Shirley Rosamund, Doug Hatch, Mary Anne Thomas,, Paul Mershdorf,, John Williams, Howard Hauser, Betty O'Neal , and Ed Ness. CORRECTIONS AND APPROVAL OF MINUTES OF JANUARY 4, 1978 I Director Huber moved, and Director Maass seconded, that the minutes of January 4th be tabled. ALL AYE BY VOICE VOTE. MOTION CARRIED. BILLS FOR BOARD APPROVAL AND STATEMENT OF GENERAL FUND j I i The bi l i s presented for review and approval totaling $221 ,551 .98 were briefly discussed by the Board. Director Kuttel moved, and Director Maass seconded, that the bills be paid. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. SO MOVED. REPORT ON CMUA CONFERENCE ,...••. Director Huber reported that she had attended the conference on Solar Energy. After summarizing the presentation, she noted that the State encourages the use of solar energy as opposed to other forms of energy and further noted that representatives of the Department of Energy would be happy to visit the area for the purpose of a presentation. Director Kuttel reported on his attendance at the CMUA conference and summarized the demonstration on low grade fuels and talks regarding hyd r-o electric plants, atomic energy and nuclear energy. MANAGER'S REPORT Update on customer refunds due to Sierra Pacific rebate The District, Mr. Seymour advised, is ready and able to process the customer refunds except for the lack of programming. Completed programming is promised to the District by March 13, 1978. As soon as the program is received and verified on the District machine, the computation of bills with the refund and refunds to those who are no longer customers will be immediately initiated. Update on insurance negotiations Mr. Seymour advised that, as of the 6th of March, the District has not yet received word from Stice and Wells as to what the new premium will be. However, Glen Stice assured Mr. Seymour that the District is and will be covered. Report on meeting with Sierra Pacific respecting fuel charge fluctuations Respecting fuel charge fluctuations, M r. Seymour noted that a meet- ing between Director Huber, Bill Branch of Sierra Pacific, and himself has been scheduled for Tuesday, March 14, 1978, at 1 :30 P.M. Director Huber indicated her availability. Report on meeting regarding use of radio scanners by local districts Mr. Seymour advised that a meeting was held with representatives of the California Highway Patrol , Truckee Sanitary District, U. S. Forest 3/6/78 pg. 1 Service and the Truckee Fire Protection District. The consensus of the meet- ing was that the Sanitary District, Public Utility District and Fire Protec- tion District wi 1 1 , with appropriate approvals, purchase radio frequency scanners to scan some ten frequencies used in the Truckee area. The Cali- fornia Highway Patrol will , if possible, incorporate the Public Utility Dis- trict's frequency on a scanner they are going to i ns to 1 1 . The U. S. Forest Service is purchasing a programmable scanner for sue during the fire season and have indicated they will include the P.U.D. ' s frequency on their scanner during fire season. Outside of fire season there is little reason for their monitoring of the District' s radio net. Mr. Seymour noted that he anticipates following up with the Sanitary District and Fire Protection District with the number of scanners necessary and make arrangements to purchase all the scanners at one time to obtain the best possible price. The District is also investigating the purchase of these scanners through the State Purchasing Office. Report re sewer assessments on District owned lands t was reported by Mr. Seymour that the District has investigated the Sewer assessments paid on various parcels of land owned by the District. The Truckee Recreation and Park District has been billed for past sewer as- sessments on the park on Donner Trail Road. All other assessments appear to be proper except for the assessment on the parcel of land which contains the Donner Trail tanks and the parcel of land that is occupied by the Soma Sierra tank. The parcel of land occupied by the Soma Sierra Booster Sta- tion is quite large and could be divided to allow a sale of a lot. The current sewer assessment balance for the Soma Sierra tank site is $173. 28; the sewer assessment balance for the Donner Trail tank site is $52.06. District staff will be contacting the County respecting these as- sessments . Report respecting energy commission action on request for exemption from certain reporting requirements in energy surcharge collections The California Energy Commission, at their meeting on March 1 , 1978, granted the District's request for exemption from standard industrial coding of the District' s various 'accounts, Mr. Seymour reported. Had this exemp- tion not been granted, it would have cost the District considerable time and programming expense to meet the requirements of the Energy Commission. in- asmuch as the District has only three industrial customers who represent such a miniscule fraction of the electric energy consumed in the State, the Energy Commission staff recommended the exemption. Miscel laneous Donner Trails Tank Mr. Seymour advised that the District has an oil contamination prob- lem with the water in the Donner Trails Tank. The District will be correct- ing the situation in the next week in the following manner: 1 . Overflowing the tank to remove the excess o i 1 . 2. Draining the tank and high pressure washing of the interior of the tank. 3. Flushing the detergent and residue from the tank. 4. Refilling the tank. The time required to do this is approximately four to five days. The source of the oil is the pump at the Northside Well and does not represent malfunction of the pump; it is merely a long-term collection of o i 1 . The District does not anticipate that there will be any water out- age because of the oeprat ion. Property ]eased to the Truckee Donner Recreation and Park District Mr. Seymour advised that the Truckee Donner Recreation and Park District has forwarded a copy of the certificate of insurance on the property ]eased them by the TDPUD. (Meadow Park) 3/6/78 pq, 2 REVIEW OF PROPOSED AMENDMENT TO ORDINANCE 78-01 (DOMESTIC ELECTRIC RATES) CHANGING BILLING PROCEDURES TO COMBINE FUEL CHARGE WITH USAGE CHARGE Whether or not changing the billing procedures to combine the fuel charge with the usage charge is a proper matter for an ordinance was deliber- ated. Mr. Grumer stated he felt this should be a matter for public hearing and input, the Board should vote or make a resolution giving direction to the Manager to implement the same, but stated he did not feel it should be by ordinance. PUBLIC HEARING The President opened the Public Hearing at 7:40 P.M. i Letters from Marjorie Adkerson, J. H. Kartozian, Fosten Wilson, Verna J. Peeler & Merrilie A. Witham against combining the fuel charge with the j usage charge were read by the Manager to the Board and public. Those letters have been made attachments to these minutes. The following members of the public expressed the opinion that the District should not combine the fuel and energy charges : Shirley Rosamond, representing the Senior Citizens in the area Doug Hatch i Tim Ward Marigrey Fish Larry Young Mary Young. In answer to questions posed, Directors Kuttel , Maass and Huber, and Mr. Seymour explained the benefits of and reasons for combining the fuel charge with the usage charge. No additional members of the public wishing to be heard, Director Huber moved that the public hearing be closed. The motion was seconded by Director. Kuttel . ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, no. MOTION CARRIED. Director Huber moved to table the matter; there being no second, the motion died. Director Maass moved that discussion and possible action or direction regarding the drawing up of an ordinance amending ordinance 78-01 be placed on the March 20th agenda under unfinished business. The motion was seconded by .Director Huber. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. SO MOVED. Mr. Grumer recommended further public hearing be held at the March 20th meeting; the Board was in agreement. Mr. Grumer further advised that he will provide copies of the proposed ordinance. REQUEST FROM RESIDENTS AND PROPERTY OWNERS IN BILTZ TRACT FOR WATER SERVICE FROM THE DISTRICT Paul Mershdorf, representing approximately 47 homeowners in the Biltz Tract, summarized the present situation as customers of the Donner Lake Utility Company. It was the request of the homeowners that the District accept the Biltz Tract as part of the Truckee Donner Public Utility District service area. He advised that John Williams, owner of the Donner Lake Utility Company, had been contacted and, Mr. Mershdorf reported, seems to be in agreement with the proposal but thought there might be complications involved. For the benefit of the public in attendance, President Sutton noted that upon the request of one of the homeowners of Biltz Tract, she, Director Maass , and Mr. Seymour arranged and held an informal meeting with interested homeowners to discuss the problems with the present water system in the Biltz Tract provided by the Donner Lake Utility Company. She further advised that the District notified Mr. Williams that this matter would be discussed at the March 6th meeting. Mr. John Williams briefly advised of the conditions of the Donner Lake Utility Company water system in the Biltz Tract area. He further ad- vised that public financing would have to be obtained for upgrading of the 3/6/78 pg•3 system which was not possible at this time. The possibility of an assessment district was discussed. Mr. Williams stated that he would be willing to relinquish the Biltz Tract service area after reaching an agreement with the District on a price, the value of the system to be negotiated between the District and Mr. Williams. Paul Mershdorf,, Betty O'Nea.1 , Danny Rehkop, Jim Thomas spoke regard- ing the problems and inadequacies with the present Donner Lake Utility Company system, water having been unavailable in Biltz Tract for ten days. It was the homeowners ' request that the Board vote in favor of pursuing the acqu i s i- tion of the Biltz Tract. District Engineer Cook advised of the assessment district proceedings involving road construction in the Biltz Tract, water improvements in the Armstrong Tract , and sewer facilities in both the Armstrong and Biltz Tracts; the pos s i b 1 i i ty of including the acquisition of the water system in the pro- ceedings was discussed. He further advised .that approval by the Nevada County Public Works Department is presently being awaited. The formation of the District would probably occur during the first part of April . Ed Ness , Bond Counsel for the assessment district in Nevada County, explained the mechanics of the assessment district proceedings. Director Huber moved that the Truckee Donner Public Utility District Board view with favor the assessment proceedings to upgrade Biltz Tract and acquire it at some negotiated price. No second to the motion was recorded. ROLL CALL: Huber, aye; Kuttel , aye; Maass , aye; Sutton , aye. SO MOVED. Director Maass requested that a status report on Biltz Tract be placed on the next agenda under the Engineer's Report; the other Directors were in agreement. Mr. Seymour repeated his offer made at the informal meeting with the residents of the Biltz Tract to provide an emergency tie- in between the Don- ner Lake Utility Company system and Truckee Donner Public Utility District system if so requested by Mr. Williams in the event of another failure. w . REPORT FROM COUNSEL REGARDING LEGAL PROCEDURES AND ALTERNATIVES RE VACANCY ON THE BOARD OF DIRECTORS Mr. G rumer advised that the Board vacancy could be filled either by Special Election or by appointment, the appointment lasting until the next District election in November of 1979. Mr. Grumer recommended making an appointment rather than holding a Special Election. Director Maass requested that this matter be discussed furi ng Ex- ecutive Session. He moved to table the item. The motion was seconded by Director Huber. ALL AYE BY VOICE VOTE. MOTION CARRIED. FARMERS HOME ADM I-N I STRAT I ON LOAN/GRANT PROJECT Evaluation of bids on project; staff recommendations; possible award of bid subject to FmHA approval Mr. Cook advised of the bids received last Friday at 4:00 P.M. He referred to one complication that occurred at the bid opening and deferred to High Sierra Construction for explanation-. President Sutton noted that the bid from High Sierra Construction had not yet been opened. Richard Vaughan lorns , speaking for High Sierra, explained that his company's bid was delivered four minutes after the hour of 4:00 P.M. at a point when only one bid had been opened. He asked that the Board accept the bid, there being no ability to cheat or change prices , etc. The possibility of dispute or litigation, placing the FmHA loan in jeopardy, and irregularities of bids were discussed. Director Maass moved that the Board deny Mr. lorns request. The motion was seconded by Director Huber. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. SO MOVED. 3/6/78 pg• 4 Mr. Cook reviewed with the Board the Bid Summary, Summary of Project Cost and Project Description (these documents have been attached) . The pos- sibility of eliminating work on Tonini and McGlashen Springs , Schedule D or Southside Wells 1 and 2 was discussed. The Board briefly discussed an additional FmHA loan and grant. Director Maass moved that the Board request an additional augmentation to the loan of $48,800 coupled with a grant increase of $12,200 from FmHA regarding Project 77-1 . The motion was seconded by Director Huber. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. SO MOVED. i President Sutton brought to the attention of the Board that Schedule A was for the use of AC pipe and Alternate Schedule A was for the use of steel pipe. i Director Maass moved that Schedule A in the amount of $1 1 g,346 be awarded to Jetco Construction Company and that the Board award the bid for Schedules B, C, and D to Henderson Construction Company in the amount of $1341125 on the conditional basis of the District's request to Farmers Home Loan for augmentation of the loan as well as their approval of the bids as they have come in. The motion was seconded by Director Kuttel . ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. SO MOVED. Status report re progress on fulfilling conditions of loan/grant Mr. Seymour requested a meeting with Mr. Cook during the coming week to review the progress on fulfilling the l oan/grant conditions; Mr. Cook agreed to such meeting. i Report and discussion of possible water rate structrue necessary to comply with loan/grant conditions and to meet District's revenue requirements Mr. Cook presented a proposed rate adjustment to provide principal and interest payments on a FmHA loan of $239,200, and explained the same to the Board; pumping zones were discussed at length. No action was taken. RESOLUTION ESTABLISHING DISTRICT POLICY ON TIME LIMITATIONS FOR ''WILL SERVE'' LETTERS Mr. Seymour read the proposed resolution setting forth conditions by which the District will render service and setting time limitations on such commitments. After a brief discussion, Director Huber moved, and Director Kuttel seconded, that the Board adopt Resolution 78-17 concerning time limita- tions to run with the tentative map on will serve'' letters. ROLL CALL: Huber, aye; Kuttel , aye; Maass , aye; Sutton, aye. SO MOVED. I REPORT, DISCUSSION AND POSSIBLE DIRECTION RE MEANS OF FINANCING ELECTRICAL SYSTEM IMPROVEMENTS OTHER THAN R. E.A. LOAN Director Huber moved, and Director Maass seconded, that this item be tabled until after the Board has discussed financial consultants. ALL AYE BY VOICE VOTE. MOTION CARRIED. MANAGER'S RECOMMENDATION REGARDING CHANGES IN AFTER-HOURS CALL-OUT PROCEDURES; POSSIBLE DIRECTION Mr. Seymour recommended that the District subscribe to the North Shore Answering Service and Air Signal Company .of California paging service and that the District purchase four paging receivers. The approximate initial cost to the District would be $800; the monthly cost to the District will be between $60 and $80. A discussion of the emergency number being listed as 587-3896, or optionally to the new dine, 587-2102, ensued. Director Maass moved that the Board authorize the proposal to change after-hours calls as suggested by the Manager, which would include expenditures to the North Shore Answering Service and Air Signal Company of California. The motion was sec- onded by Director Kuttel . ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. SO MOVED. It was noted that 587-2102 will be the emergency number. CONSIDERATION OF PROPOSED BY-LAWS OF THE BOARD OF DIRECTORS Mr. G rumer noted that some changes to the draft bylaws had been re- quested at the Committee meeting held last Thursday; he requested that the Board delay the matter since he had not had the opportunity to incorporate such changes in the proposed bylaws. President Sutton requested that this 3/6/78 pg• 5 i 10 item be placed on the agenda for the first meeting i n April , April i l 3 rd for review and consideration. p ' PROBLEM WITH APPLICATION 25624 TO APPROPRIATE UNAPPROPRIATED WATER (SOUTH SIDE SPRINGS) Mr. Cook noted the change in requirements for application 25624 to appropriate unappropriated water in Southside Springs. Upon Mr. Marron's advice, Mr. Cook recommended the District incorporate the necessary changes and resubmit the application. Director Maass moved that the Board authorize Mr. Cook to correct the problem with the Southside Springs water application. The motion was seconded by Director Kuttel . ALL AYE BY VOICE VOTE. MOTION CARRIED. The environmental process was briefly discussed; Director Huber moved that the Board direct the engineer to proceed with the Environmental Impact Assessment for the application regarding the Southside Springs ap- plication for appropriation of water. The motion was seconded by Director Maass. ALL AYE BY VOICE VOTE. SO MOVED. LETTER FROM UNDERGROUND CONSTRUCTION CO. , INC. REGARDING DISTRICT REQUEST FOR REIMBURSEMENT FOR DAMAGE TO WATER LINES Mr. Grumer noted that he fei t a report from Mr. Cook concerning specific incidents listed in Underground Construction 's letter (attached) would be helpful . Correspondence received from Underground Construction was discussed by the Board. Director Huber moved that the Board authorize the engineer and counsel to meet and exchange necessary information and pro- ceed with advising Underground Construction that their request is unaccept- able. The motion was seconded by Director Kuttel . ALL AYE BY VOICE VOTE. SO MOVED. Mr. Seymour asked that the District submit the response prepared by M r. Cook and M r. Grumer along with a copy of Underground Construction' s correspondence to Pacific Telephone requesting their support. MISCELLANEOUS President Sutton noted for the record the receipt of Truckee Sanitary District correspondence dated March 3, 1978, respecting Mr. Grumer's letter written last year discussing merger possibilities of the Districts. President Sutton noted the receipt of a waiver of time limitation on the Donner Lake suit signed by Mr. McDonough and Mr. Moskov i tz and ask- ed that a copy be attached to these minutes. REVIEW AND DIRECTION RESPECTING ESTABLISHMENT OF POLICY PROVIDING TERMS AND CONDITIONS OF LEAVES OF ABSENCE FOR MANAGERIAL EMPLOYEES Director Sutton noted that, with previous management, lack of policy had created problems. Notice, time provisions, medical verifications and scheduling were briefly discussed. Mr. Grumer, after consulting with Mr. Seymour, will prepare a draft resolution respecting leaves of absence for managerial employees. REVIEW OF BIDS FOR SURPLUS WATER PIPE; MANAGER'S RECOMMENDATION AND POSSIBLE AWARD OF BID Mr. Seymour advised that two bids were received on the surplus water pipe - one from Mr. Oden tha i in the amount of $2, 100 for all of the pipe, - and from Michael Fowl e in the amount of 25� per lineal foot for the 4" pipe only. The bids being low, Director Kuttel moved that the Board reject both bids. Director Maass seconded the motion. ALL AYE BY VOICE VOTE. MOTION CARRIED. DIRECTION RE HIRING FINANCIAL CONSULTANT Mr. Seymour advised of the necessity to hire a financial consultant in order to comply with the R.E.A. loan requirements. The possibility of borrowing from a Federal bank was noted by Mr. Seymour; he will ascertain details respecting this matter and further advise the Board. It was determined that the District has a need for a financial con- sultant; Director Maass moved that the Board direct the Manager to solicit 3/6/78 pg. 6 proposals for a financial consultant. The motion was seconded by Director Huber. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, aye. SO MOVED. President Sutton advised that Ed Ness , Bond Counsel for the Count of Nevada, could provide recommendations for some small financial consulting firms. i REPORT ON LEGAL REQUIREMENTS FOR STORAGE OF FLAMMABLE FLUIDS AND FUELS; POSSIBLE DIRECTION Mr. Seymour advised of the current violation of California OSHA requirements in the District' s manner of storing flammable fluids and fuels. President Sutton requested that the Manager investigate the manner of the District's storage of dynamite, it previously having been stored in the Superintendent's office. Mr. Seymour advised that the District does not use dynamite. Mr. Seymour is to report back to the Board as to what his recommenda- tions and the State requirements are for storage of flammable fluids and fuels. PRESENTATION OF PROPOSED BUDGET FOR 1978 FISCAL YEAR It was decided that a Special Meeting for presentation of the budget for 1978 would be held on Thursday, March 9th, at 3:00 P.M. It was noted that Mr. Cook and Mr. Grumer need not be present at such meeting. REVIEW OF MEMORANDUM FROM SUTTON RE MINUTES, POSSIBLE DIRECTION Director Maass moved, and Director Huber seconded, that this item be tabled. ALL AYE BY VOICE VOTE. SO MOVED. i DISCUSSION RE DISTRICT RESPONSIBILITY FOR FIRE FLOW STANDARDS AS PROPERTIES E E D V LOP Director Huber suggested that the Manager and M r. Cook meet with F i rech i of Copeland respecting line size and necessary fire flow. The item wi 1 1 appear on the agenda at some future time. j I STATUS OF UNRESOLVED PROBLEMS IN SERVICES TO DONNER CENTER, TAHOE FOREST APARTMENTS, ETC. Mr. Seymour advised of a letter written by Mr. B i rge to the tenants of Donner Center stating he would be installing a distribution system and . meter sockets and that the tenants would be metered individually after pay- ing a connection fee to the TDPUD. To date, no further action has been taken. Mr. Seymour does not ant i c i pate any action being taken by Mr. Van Wetter on the Tahoe Forest Apartments matter. After a brief discussion, President Sutton requested that the staff proceed with action on these matters and report back to the Board. The Manager advised that a meeting has been set up with Tahoe Forest Hospital for the 3rd of April to resolve financial differences. DISCUSSION AND POSSIBLE DIRECTION RE SIERRA ECONOMIC DEVELOPMENT DISTRICT' S APPLICATION FOR EDA FUNDS Mr. Seymour reviewed material received by the Board respecting Sierra Economic Development District' s application for E.D.A. funds. He noted that the application should be completed and submitted by April 30th for considera- tion. Director Maass moved that the Board authorize Mr. Seymour and Mr. Cook to meet respecting the E.D.A. funds. The motion was seconded by Director Huber. ALL AYE BY VOICE VOTE. MOTION CARRIED. MISCELLANEOUS Director Maass requested an agenda item for the April 3rd meeting regarding a recent television program entitled "60-minutes" which dealt with the theft of electricity. Mr. Grumer was requested to obtain an abstract of 3/6/78 pg. 7 1 the program from the TV station. Mr. Seymour was asked to report on the Dis- trict' s procedures relating to this matter. DISTRICT ENGINEER'S REPORT Status report on Sander's Site Well development M r. Cook reported that the step draw down test has been completed and the data is being analyzed at this time. The long term pump test is near completion. The information, along with Bill Nork's comments, should be avail- able at the next meeting. Status report on revisions in Water Rules and Regulations and Water System Construction Standards Mr. Cook advised that the revisions in the Water Rules and Regula- tions and Water System Construction Standards were contained in the Water System Analysis Report; some revisions were made at committee meetings - these changes were presented by Mr. Cook. Comment re new State Water Regulations Mr. Cook advised that the State Health Department today provided a copy of the new regulations. President Sutton requested that Mr. Cook re- port on the new regulations after review. DISTRICT COUNSEL'S REPORT Report on Management Guidelines Mr. Grumer noted that the Management Guidelines are in the process of being typed in final form; they will be delivered to the Directors prior to the next meeting. MISCELLANEOUS CEQA Ordinance Mr. Grumer advised that the CEQA Ordinance must be published in full (except for attachments) . Due to the length of the Ordinance, Mr. Grumer will recheck the necessity of this pub 1. i ca t i on and advise the Board. PLANNING DEPARTMENT NOTICES The Directors discussed the Racich development on Highway 267, the Bentley - Brandt Environmental Impact Statement, the Use Permit Application of Toomey; M r. Cook noted, regarding the Toomey application, that he had not contacted their engineer as yet. The hearing on March 23 rd regarding the area near the Cottage Hotel , for which no will-serve letter is required, was briefly discussed. No Board direction was given or action taken. CORRESPONDENCE The President requested that the minutes show that the following correspondence was received by the District: Letter dated February 2, 1978, from Farmers Home Administration respecting the weather i zat ion program, letter dated February 7, 1978, from Gilbert and Associates regarding residential water rates, letter dated Feb- ruary 8, 1978, from Truckee Sanitary District re honoring Charles Osburn for public service; this matter is to be placed on the agenda for the next meet- ing. Letter dated February 8, 1978, from the State Board of Equalization regarding a slight reduction in the surcharge which has been attached to these minutes, letter dated February 10, 1978, from the Tahoe Forest Hos- pital having to do with health screening available to public employees; this matter is to be set on the agenda for the next meeting for Board determination. Letter dated February 21 , 1978, from Berington B. Brooks, a District customer from Tiburon, and Mr. Seymour' s letter dated March 2, 1978, to Mr. Brooks - these letters have been attached to the minutes. The letter dated February 24, 1978, from the Rural Electrification Administration regarding the District's reporting and accounting system. Mr. Seymour noted that it was their desire that the District separate the accounting for the Water and Electric Departments; it was decided that the District would com- ply with their request. The letter from Mrs. Dominquez dated March 1 , 1978, 3/6/78 pg. 8 regarding damage to her refrigerator and a claim for such damages was briefly discussed. Director Maass moved that the District reject such claim and. re- fer the same to the insurance company. The motion was seconded by Director Huber. ROLL CALL: Huber, aye; Kuttel , aye; Maass , aye; Sutton, aye. SO MOVED. Correspondence received March 1 , 1978, from the Sierra Sun regarding advertising in the Sierra Sun' s special edition was briefly discussed by the Manager and Board; representation in this edition was decided against. j EXECUTIVE SESSION At approximately 11 :45 P.M. the Board convened to Executive Session in the District Board Room. RECONVENE INTO PUBLIC SESSION At approximately 1 :50 A.M. , the Board reconvened to Public Session. Director Kuttel made a motion that the Board be rearranged; he further moved to appoint Director Maass as President of the Board. Director Huber seconded the motion. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, abstain. SO MOVED. 1 i Director Kuttel stated for the record that Director Sutton would be leaving the area for vacation for a month and a half and the Board would be without a duly appointed president; he would like a duly appointed president present. Discussion and action regarding the appointment of a Vice President to the Board is to be an item on the next agenda. The legality of rearranging the Board at this meeting was briefly discussed; it was decided to place the matter on the next agenda in order to be assured of the legality of such action. Director Kuttel moved, and Director Maass seconded, that the Reg- ular Meeting of the Board of Directors be adjourned, there being no further business before the Board. ALL AYE BY VOICE VOTE. SO MOVED. The meeting was adjourned at approximately 2:05 A.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By- -�-' J s A. Maass, President Approved July 17, 1978 - copy of Sutton ' s corrections to be attached Signed Susan M. Craig Executive Secretary 3/6/78 P9. 9 /6"00 MEMORANDUM to other Directors Manager/Clerk Counsel July 69 1978 FROM Pat Sutton, Director re: Corrections to Draft Minutes of Regular Meeting of March 6, 1978 Page 1 of Draft OTHERS PRESENT Correct "OTHERS PRESENT" to "AMONG THOSE PRESENT" because there were a number of others who apparently did not sign the sheet. Page 4 of Draft PUBLIC HEARING Omission: Add "Mary Ann Thomas" to the list of those who participated by verbal comment or questions, including identification. Addition Resuest: Add time Public Hearing was closed by amending the beginning of the jth paragraph to read: "No additional members of the public wishing to be heard, at approximately 8:15 Pam, Director Huber moved, etc." Omission: Additional opinion of Counsel was sought and given but has been omitted from the Minutes. Since his earlier advice is recorded, it seems equally appropriate to record his revised opinion. Add new paragraph after ,nth paragraph which reads: "The Chair in uired of Counsel whether an ordinance might not be the best method for the Board to accomplish its wishes since all of the testimony, both written and oral was in opposition to a ch2.,nge in billing rocedures. Mr. Grumer said that in contrast to his earlier remarks after more than half an hour of testimony, his advice was to do it by ordinance in order to to preserve the integrity of the public meeting,_ BILTZ TRACT REQUEST Error: Correct "Mershdorf" t o"Merschdorf" ADDITIONAL INFORMATION REQUESTED TO SHOW IN MINUTES: (from verbal presenta- tion on tape) Addition to first sentence so part of it reads: ". .representing approximately 47 homeowners of the approximately 104 ,parcels in the Biltz Tract " MEMO from Sutton July 6, 1978 re: March b, 1978 Draft Minutes Page 2 Pag e\5 of Draft BI LTZ TRACT, continued Correction: There is some misinterpretation of what happened do what was said in first sentence of first paragraph on this page; Amend: "For the benefit of the public in attendance, President Sutton noted that upon the re nest of one of the homeowners it in the Biltz Tract, she fflilx# 9101 V// li#i# arranged and Xjj� an informal meeting was held by Mr. Seymour, Vice-President Maass and herself with interested homeowners a week ago to discuss the problems with the present water system in the Biltz Tract provided by the Donner Lake Utility Company." Omission; Add after second paragraph on this page: "Howard Hauser, a resident of the Donner D1 m is Tract indicated that his area, has had similar problems with water service and he requested that Olympic Drive be included in any study," Omission: Others also spoke, including a man who identified himself and spoke during this particular part of the meeting. Amend first sentence of the third paragraph on this page: "Paul Merschdorf (spelling correction), Betty O'Neal, Danny Rehkop, Jim Thomas, Glen Milleria_nd others spoke regarding the problems and inadequacies with the present -Donner Lake Utility Company system, water having recently been unavailable in he Biltz Tract for 10 days." Misla,cement: Mr. Ness' explanation came after the motion was made and should be properly placed in the Minutes where it took place in the meeting. Change location of paragraph, placing it between making and second of motion re Biltz Tract and the Roll Call Vote. (Also see next correction related to this paragraph) Additional Information Requested to Show in Minutes: The Minutes should record Mr. Ness' explanation, not just say he "explained the mechanics," Amend: "Ed Ness, Bond Counsel for the assessment district in the County of Nevada, explained the mechanics of the assessment district proceedings as they relate to the possible water s stem ac uisi- tion: the petition to form the assessment district is presented to the County of Nevada; the County would acquire the waters stem from Donner Lake Utility Come an ; the Truckee Donner Public Utility District would not be involved in the assessment district. He further indicated that the assessment proceedings would rovide for the ac ui siti on and uMrading of the s st em and that after these thins were accomplished accoMplishedt it would be conveyed to the TDPUD by the County through a contract." MEMO from Sutton July 6, 1 78 re: Marc 6 1978 Draft Minutes Page 3 Page 5 of Draft, continued BILTZ TRACT, continued Error: There was a. second to the motion by Huber re Biltz Tract upgrading, amend: 'ItJ #/#J # #J The motion was seconded Im Mr. Maass.," Page b of Draft, Biltz Tract, continued Omission: The minutes must record what happened in some manner. Correct omission by adding another paragraph after first one on this page which reflects what happened: "Discussion of the Biltz Tract problems was terminated when the .:Chair announced that a Ruorum was no lon er present in the meeting room and she declared the meeting temporarily recessed."' Page 7 of Draft FmHA LOAN/GRANT Omission: The Chairman established certain information which was requested to be included in the Minutes (by Mr. Maass). Correct omission by adding paragraph after motion in second paragraph on page 7 'tut before Roll Call vote is recorded: "Before the vote on the motion President Sutton clarified with Mr. Gook that Schedule A was for A/C pip2,. and that Alternate A the steel pipe, had come in at a higher bidprice,_ and that the construction would be with A C pipes" POSSIBLE WATER RATE STRUCTURE Additional Information requested to show in minutes: The written material presented should show as attached to Minutes, and some additional explanation, according to what was said, should be included. Amend paragraph: "Mr. Cook presented a proposed rate adjustment to provide principal and interest payments on a FmHA loan of $239:200, and explained same to Board. A copy _of the proposal is attached to these Minutes. The proposal has a base rate of $1.60 to cover the operational costs other than pumpiEg costs but that amount re resents a theoretical figure which must be elaborated u n to meet the District's actual costs. Pumping zones were dis- cussed . Mr. Cook indicated that the zonal costs should be based on historical data and that they should be reviewed evea few ears as buildout in the various zones occurs. No action was taken," r . M.EM-0 from Sutton o=21 July 6, 1 78 re Marc 6, 1978 Draft Minutes page 4 Page of Draft, continued TIME LIMIT ON WILL SERVE =ERS Omission: Important advice given by Counsel has not been included in draft. Correct omission by adding another sentence after first sentence under this item: "Mr. Grumer indicated that future "will serve" letters should refer to this Resolution and its time limitations." Page 8 of Draft SOUTHSIDE SPRINGS Error: The attorney refered to was not "Mr. Merron." Correct so that second sentence begins: "Upon Mr. V#11JIj McDonough's advice, Mr. Cook etc." Page 9 of Draft LEAVES OF ABSENCE Omissi6n t Important information of record not included in draft. Correct first sentence under this item according to what was saidt "Director Sutton noted that, with previous management, lack of of policy had created problems, and that, in the letter to the to the Grand J this Board had acknowle ed that he estab- lishment, of a policy wa.s necessary," Page 10 of Draft STORAGE OF FLAMMABLE FLUIDS Misinterpretation & Omission: Correct the second paragraph so it reflects what happened and what was said: "President Sutton requested that the Manager investigate whether the manner of the District's storage of dynamite had ever been resolved, it previously having been stored in the Superintendent's office. Mr.Seymour advised that the District does not use dynamite. Director Sutton indicated that previously_the District did not have a qualified to direct the use of explosives. Mr. Seymour inidcated that one of the em to ees had obtained a Permit.e' DONNER CENTER,, TF APTS, ETC, Error: correct spelling of "Birge" Omission: Important recommendation by Manager not included. Add new sentence to end of second paragraph under this item: "He s ested that a decision should be made one wa or another regarding whether the line extension char e was or was not ., justified," MEMO from Sutton July 6, 1978 re: March 6. 1978 Draft Minutes lie 5 Page 11 of Draft WATER RULES & RES & STANDARDS Misinterpretation: revise this paragraph as follows: "Mr. Cook:0. X#X re rted brieflyon the status of the revisions to the Water Rules and Regulations and Water Construe- tion Standards, which were contained in the Water System Analysis Report. Some revisions were made at committee meetings 11#10 M#1XI 01i i1J111X# ¢ and he indicated that some sections have been sug&tsted for a total rewrite which is in progress." Page 12 of Draft PLANKING DEPT NOTICES (top of this page) If in error, correct spelling of "Brandt" Misinterpretation t revise part of paragraph as follows: ". . ..the Use Permit Application of Toomey, _ Mr. Cook noted, regarding the Toomey application, that he had �JX been contacted b.X their engineer about the West River Street Assessment District line extension Po .ic # JJX. The hearing on March 23 regarding the area near the Cottage Hotel, J&� for Which no will-serve letter is rewired, was briefly d.iscussedL with Director Sutton inquiring about firef low at that location and Mr. Cook indicates that the area is deficient ,-use the water line is-4 inches in size." CORREBPONDENCE Additional information requested to show in Minutes: In order to claxify what the Board did, according to what transpired, add after last paragraph under this item: "The public session was ad'ourned and the meeting was moved to the District office to continue in Executive Session." EXECUTIVE SESSI CN Error;. The meeting at the school district office was adjourned at 120.10 a.m. and it took half an hour before the cleanup was completed and-Milt and Susan and I arrived at the District office. Amend: "At approximately jf#� IIXI -12:45 A.M, the Board re-convened in Executive Session in the District Board Room," MEMO from Sutton July 6, 1978 1 re March 6: 1978 Draft Minutes page 6 Wage 13 of Draft Additional information re nested to show in Minutest Since I specifically p lly requested during the public session after the Executive Session that a public statement be made regarding the reorganization of Board I believe that the M g : Minutes should record the request if it records the response. Add after first paragraph on this Page: "Director Sutton requested that the reasons be stated for the record." Additional information requested to show in Minutes: Since Mr. Kuttel actually made two statements, one following the other, and one referring to an absence of a "month" and the other referring to an absence of a "month and a half," instead of choosing which period of time he meant, it would seem more appropriate to incorporate both in the statement which is not actually verbatim anyway. Amend "Director Kuttel stated for the record that Director Sutton would be leaving the area for vacation for a month or a month and a half and the Board would be without a duly appointed president; he would like a duly appointed president present." This meeting was terribly long and some of it was complex. I have reviewed the tapes, and I believe that these corrections are needed so that the Minutes provide a more accurate and complete record of the business of that meeting. (All of the corrections, except for the ones on spelling, are based on a very careful review of what was recorded on tape. Th7yout P NON TDPUD Director copy to Dan Susan w � BILLS FOR BOARD APPROVAL: Electric Water General Total Ace Hardware Pliers, staple gun 8.16 5.76 13.92 Aetna Life Insurance Co. Life insurance premiums 57.21 57.21 Allied Business Forms Address labels for refund program 16.56 16.56 Allied Automotive Misc. vehicle parts 27.70 27.70 Alpha Hardware Gloves, pipe wrench offsets, crow bar 61.94 97.47 159.41 Armanko Office supplies 20.95 20.95 Atlantic Richfield Gasoline and diesel fuel 825.48 825.48 Avery Engineering Work done on telemetry system - billed to Dart 1500.00 1500.00 R.W. Beck and Associates See comments 3029.29 3029.29 Blue Cross Health plan premiums, 3/78 1979.46 1979.46 Bookman Edmonston Eng. Engineering services, Tahoe Donner - 12/775 1/78 1590.00 1590.00 Cal Western Life Pension plan premiums, 3/78 1809.83 1809.83 Camellia Valley Supply Pipe, water boxes, lids, tape 1252.95 1252.95 Communications Center Radio scanner 136.74 136.74 Consolidated Electric Dist. Automatic line splice 352.02 352.02 Continental Courier Service Pickup service for water samples 42.00 42.00 Cook Associates Consulting fees 1817.63 1817.63 Crown Life Insurance Long term disability plan plus back adjustments 740.72 740.72 D & D Agencies Greyhound shipping charges 3.85 3.85 Davis Auto Parts Misc. auto parts 55.73 55.73 Digital Computer maintenance agreement, 1/78 139.00 139.00 Electronic Calculator Co. Calculator repair charges 77.18 77.18 Forms Management Billing statements and refund checks 2077.86 756.06 2833.92 W.W. Grainger Light fixture, lunchroom chairs, cardboard bins, thermostat 405.94 405.94 Graybar Reflective numbers 23.25 23.25 Group III Electronics High speed printer 6327.70 6327.70 Steven Grumer Legal consulting services 1503.40 1503.40 Industrial Safety & Security Wheel shocks 32.59 32.59 I.V.C. Printing Office supplies 178.50 178.50 Jack's Tow Tow boom truck from Tahoe Donner to P.U.D. 65.00 65.00 M & R Construction Snow removal at substations & P.U.D. yard 350.00 87.50 437.50 Ray Manning Refund and rate change-letter labeling & stuffing services 105.00 105.00 Martin McDonough Legal services 128.39 128.39 Mission Linen Linen service 30.40 30.40 Nevada Safety & Supply Climbers and pads for climbing hooks 57.73 57-73 P.E. OH air Repair clamps 270.98 270.98 Osburn's Garage Vehicle repairs 332.79 332.79 Pacific Telephone Co. Pole contact annual charges 591.25 591.25 " Monthly telephone charges 455.75 455.75 " Telemetry charges 162.75 162.75 Pitney Bowes Quarterly postage meter rental 43.99 43.99 TRUCKEE DONNER PUBLIC UTILITY DISTRICT STATEMENT OF GENERAL FUND - March 1 , 1978 Bank Balance - February 17, 1978 $ 55 734.67 Truckee Electric and Water Revenue 66 9199.02 Donner Lake Electric Revenue 20,621 .42 Standby Revenue 562.33 Electric Connection Fees 700.00 Water Connection Fees 140.00 Facilities Fees 250.00 Miscellaneous Billings Revenue 49237.46 Miscellaneous Revenue 92.52 $ 14 8,537.42 Approved Billings $ 186.92 Bank of America - Truck loan payment 474.02 George Cattan - Pension plan payment 258.75 Directors - Board meeting compensation 350.00 Tahoe National Bank 356.44 Elizabeth Wiser - Travel expenses , computer school 150.00 $ 1 9776. 13 Bank Balance - March 1 . 1978 $ 146761 .2 9 Bi l l s o for.Boa d"Approval (See attached) 221 551 .98 Balance of Account after payment of above $ 74 790.69 Transfer from LAI F to cover accounts payable - transfer made 3/6/78 75,000.00 Balance of Account after LAIF transfer $ 209.31 General Fund balance in LAI F after transfer is $2125946-80 COP 1 ES To Pfaard District Engr Distri COUns supt. arch 5 1978 Directors, T-DPUD P. 0. Box 309 Truckee, California 95734 Directors: Consideration Monday, March 6 of Re. : Billing procedures for Residential Customers I was in the audience at a ; January T-DPUD Board Meeting when you adopted a Resolution relative to the information that is to show on the monthly billings to re sidental users, I understand you are again considering this item. Since I can not be at your Monday, March 6, 1978 meeting, may I give you my input on this matter by way of this letter? My Position remains the same : that it would be wise to continue to show to each customer the dollar amount he is paying for the oil to produce the amount of electricity he has used that month. I feel it wise to continue to indicate the fuel charge on each print-out, My rationale for this opinion lies in the history of why the T-DPUD began showing the fuel charge. The situation is -not so different today--customers are still upset over large electric bills. Hiding the fuel charge in a single total dollar amount will bring their upset back to the PUD, . the ones who sent the bill. You and your staff will still have to explain the fuel charge to complaining customers, because it is one of the most Influential factors in the increased coet of electricity, The upset or irate or frustated customer is not, going to calmly sit down and use the "fuel factor" printed at the bottom of his bill to figure the cost of producing his, electricity, and calm down in the process. I feelyou are askj�n: g for ,problems; and you are helping those who wish to ignore the Fossil fuel demands of industries whose products they use d if you discontinue showing how many dollars of the total electric bill goes to buy the oil used to produce the electricity. Sincerely, f ' i Mar*orie Adke son P.O.Box 1981 Truckee, California 95734 R` ♦ J CON ES TO. _.- oar r� 115 District En gr• District C.L ML SUM Fore,,,.,, March 6, 197 TT)PTTD Board of Directors c/o Mrs . R. Sutton r 6' 's I would like the board to recnsider their tan . resent their unon -itemized� t° p customers t omers with a s t at eme,1 t for electrical services. Fventhough no obe en jo�,s paying the fuel charge, it should stil l be preeented as a separate cost. First z the consumer has the right to know for what he is paying. S e c ondl T, your computer and bills j,g service can easily print-out this information, Thirdly, commercial establishments n s do not present lump sum bills , and. customers would co ,'plain if they did so. If it is .your intan.t to hide the fuel char:,¢ e and by doing so, forestall complaints , I think that this action represents a reduction in the level of service, not an improvement. y A H. Ka tozian Box 2422 Truckee f COPIES TO,00 Board of Directors D i strict Engr. -�-. _----- +farc h 6, l 9 7 8 i... i x. El District Counsel Truckee-Donner P. U. D E] Supt, Foreman Truckee . Cal If, Greetings , Althouizh I cannot be present, I wish to express my concern about the status of the fuel charge, I have experienced, as you have , the public response against this charge on P, U, D, bills, However, I believe reducing the visability of the fuel charge : 1) treats the symptom rather than the basic problems of high electric costs and, monthly price f Iuxuat ions ; -and-- 2 ) diminishes the Public aspect of this Public Utility District. If the public is angry, a better response may be to give that anger a voice, Speak out as representitives of the customers, Officially protest to Sierra Pacific , our legislators . and the federal regulatory agency. Ask the people in the District to do likewise, Such actions are not likely to eliminate the fuel charge , but hiding it does nothing at all to eliminate it. You can also respond to this anger by actively looking for cheaper alternative sources, Thank you for your attention, Sincerely, X042:;�� Fosten Nilson COPIES TO: Board District f ngre District Counsel Supt. Foremon El .................. . ...................................... __— March 6, 1978 Mrs. Pat Sutton, President Board of Directors Truckee Donner PUD Truckee, CA 95734 Dear Board Members It has come to our attention that certain members of the Board favor the omission of the fuel charge as a separate entry on the monthly statement. We, as consumers of district power and as teach- ers of future consumers, are of the opinion that the fuel charge should remain as a specific item on the statement. Wl7y remove a well-established entry? As the statements are issued now, a person can understand which portion of the statement goes for which portion of the service. The more informed .the con- sumer the more intelligently he/she can deal with issues regarding his/her decisions. Since the statements are currently issued by computer this should not necessitate any real hardship on the billing clerk. As a matter of fact, this change to computer should have made this Job easier thereby allowing more time to issue a more detailed billing. 4e are sorry that we are unable to attend this public'. hearing and hope that this method of communication will make you aware of our concern. Sincerely yours, Verna JI/Peeler ZA Merrilie A. Witham STATE OF CALIFORNIA STATE BOARD OF EQUALIZATION GEORGE R. REILLY 1020 N STREET, SACRAMENTO, CALIFORNIA First District,Son Francisco (P.O. BOX 1799, SACRAMENTO, CALIFORNIA 95808) IRIS SANKEY Telephone (916) 322-1210 Second District, San Diego WILLIAM M. BENNETT Third District, Son Rofaet It 50(E-s I Februar RICHARD NEVINS 8, 800 M rth District, Pasadena iENNETH COfZY Controller, Sacramento ,,.*wow r I ct Ccm,i ns4l DOUGLAS D. BELL Execufiv*Secretary Forern n P Truckee--Donner Piiblic Uti-1ity Dic,`11-rict Ueneral I'llaTI a P-,-e r P. 0. Box 3109 T r),�c k e e C"A 95r'-1 34 Gentlemen: DETERMINATION OF THE ENERGY RR030URCES SURCHIIRGE RATE At -Lts meeting on February 8, 1978, the Board of Equalization determined and fixed the energy res'Ources surcaarge rate for the twelve months beginning March 1, 1978, at foixteeflL hundredths of a mill (30.00014) per kilowatt hour. This decreases the "La-lUe presently in effect. i n c e r P-1.-v D. Dotson Assistant Executive Secretary R(,'G:j'ac UNDERGROUND Ca RSTRUCTiaH COmy ItriC COPAS TO: ENGINEERING CONTRACTORS B oc rd February24 1978 District Engr. � . _ District Counsel [21_�Su t. / Foreman - TRUCKEE-DONNER PUBLIC UTILITY DISTRICT P. 0. Box 309 Truckee, California 95734 Gentlemen: We appreciate your patience during our investigation of your eleven claims. We first contacted TDPUD on 9/28/77 and requested marking services. Most of the incidents underlying your claims result from lack of markings. We will discuss each incident in detail . In instances not listed below, where proper markings were provided, we were able to expose the indicated utility without damage. And in one case, when TDPUD was unable to release personnel to locate lines shown on our drawings, we were able to layout the mains and locate them after three hours of hand digging. These lines, like those which had been marked in advance, were not damaged. The damage incidents listed below began October 25th, almost a month after our initial request for marking service. REPORT CASE NO. INVOICE NO. DATE LOCATION REMARKS 416.42 620 & 653 10/25 Hwy. #267 Line not marked. TDPUD reported @ South it was in same trench as sewer, River but we could not locate by probing. We struck line 10' to the east in native soil . 416.44 621 10/26 Spring St. Line was not marked. & Main St. 416,45 654 10/29 Main St. A fire hydrant evidenced an under- ground lateral but no services, hydrant or others were marked. We struck 2" line. While hand digging to repair that line we found that the 4" hydrant feed had a coupling that was already cracked. 416.46 655 10/31 Main St. 3/4" line was not marked. 416.47 656 11/2 Main St. 2" main was not marked. We struck a behind Sierra pulled it loose from couplings. Tavern r, P. O. BOX 2218 .: 2600 WILLIAMS STREET .. SAN LEANDRO, CALIFORNIA 94577 .. AREA CODE 415 - 357-3520 mow,■,.•_- ,.-._a.,... __ _..w„.,,.,r t TRUCKEE-DONNER PUBLIC UTILITY DISTRICT Page 2 February 24, 1978 REPORT CASE NO. INVOICE NO. DATE LOCATION REMARKS 416.48 657 11/3 Main St. in l" and 2" lines not marked* front of Kielhofers 416.49 658 11/4 Main St. in We excavated toward source of front of water leaking into our ditch. Kielhofers . Discovered 2" coupling broken prior to our operations. TDPUD stated they had had problems in the area. 416.51 660 11/15 Hwy. #267 4" line was not marked. Valves covered with 12" of dirt. 416.52 661 11/29 West River Line was not marked. and Hwy #267 416.53 662 12/2 Hide Side 3/4" service was marked. We excavated and found pipe. We began machine excavation and struck second service (live) . First service was later deter- mined to be abandoned. In none of the above instances can we determine any negligence on the part of our field forces. In most cases the fault lies with lack of service marking as requested. Only in the last case (416.53) did mutual cooperation of marking and hand exposure fail to protect the existing service. We offer to share the cost in this instance and our check for $29.79 is enclosed. Otherwise we respectfully deny your claims, Very truly yours, UNDERGROUND CONSTRUCTION CO. ,, INC. T. Mc Manus, Jr. Secretary TKM:sl c Encl .