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HomeMy WebLinkAbout1978-02-21 Min - Board TRUCKEE-DONNER PUBLIC UTILITY DISTRICT POST OFFICE BOX 309 TRUCKEE, CALIFORNIA 95734 TELEPHONE 587-3896 REGULAR MEETING Note: Since the of the regular meeting day falls on a BOARD OF DIRECTORS legal holiday, this meeting TUESDAY will be held FEBRUARY 21 , 1978 on Tuesday 7:00 P.M. A G E N D A 1 . Call to Order 2. Roll Call 3. Corrections & Approval of Minutes of January 4, 1978 Regular Meeting 4. Bills for Board Approval & Statement of General Fund 5. Monthly Financial Report (November) SPECIAL BUSINESS : 1 . Resolution Appointing Jack Wilson to Vacant Position of Director-at-Large Created by Resignation of Peggy Alexander Oath of Office and Seating of New Director 2. Review of Proposed Ordinance Changing Electric Rate Schedules for Commercial Users 7:30 P.M. CONTINUATION OF PUBLIC HEARING Possible Board Action 3. Review of Proposed Ordinance Bringing District Pro- cedures into Compliance with Current Requirements of California Environmental Quality Act 8:00 P.M. CONTINUATION OF PUBLIC HEARING or as soon Possible Board Action thereafter as possible 4. Review of Proposed Changes in Resolution 78-01 , Establishing Policy Regarding the Lease of District Land; Possible Action 5. Review of Compliance with Policy re Specific Land Lease Proposal , Parcel Description & Location, Other Background Information 8:30 P.M. PUBLIC HEARING: Desirability of Leasing 10,000 sq.ft. or as soon Parcel on Highway 267 Which has Been thereafter Declared Unnecessary for District Use as possible Resolution Setting Forth Minimum Bid Requirements and Public Notice of Call for Proposals; Possible Board Action 6. Demonstration of Newly Installed High-Speed Printer for Computer MANAGER'S REPORT: 1 . Status of Customer Refunds Due to Sierra Pacific Rebate 2. Status of Special Mailing to Customers re Residential Electric Rate Changes 3. Status of 1978 Budget 4. Status of Insurance Negotiations 5. Report Regarding Recent Fluctuations in Sierra Pacific Power Company's Fuel Charge 6. Miscellaneous -1- continued UNFINISHED BUSINESS: I . Discussion with Counsel & Possible Direction re Consulting Services Work Order Proposal from R. W. Beck & Associates 2. Farmers Home Administration Loan/Grant Project: a) Status Report; Progress on Fulfilling Conditions b) Review & Direction re Engineer' s Draft Letter re . lmplementation of Chapter XI Recommendations in Water System Analysis Report c) Other 3. Resolution Extending Time of Payback Obligations for Prorated Costs to Ten (10) Years on Existing & Future Electric Line Extensions; Review & Possible Action 4. Response from Truckee Sanitary District re Joint Meeting to Explore .--. Possible Consolidation of Districts 5. Manager's Report re Outstanding "Will Serve" Letters; Review & Discussion with Staff re Liabilities; Possible Direction 6. Review & Direction re Possible Application for R.E.A. Loan for Electric System Improvements 7. Estimate of Costs to Send Manager to R.E.A. Managers' Conference; Possible Direction 8. Miscellaneous NEW BUSINESS: 1 . Review & Possible Direction re Draft Bid Policy 2. Review of Sierra Pacific Request for Service Outside District Boundaries 3. Review of Bids for 500 kVA Transformer; Manager's Recommendation & Possible Award of B i d 4. Review of Bids for Plain Paper Copier; Manager's Recommendation & Possible Award of Bid 5. Resolution Calling for Bids on Gasoline & Diesel Fuels; Manager's Recom- mendation; Possible Action 6. Manager's Recommendation re After-Hours Call-Out Procedures; Possible Direction 7. Resolution Establishing Special Checking Account for Refunds & Designating Signators & Signing Procedure 8. Review & Possible Direction re Tahoe National Bank Request for Waiver of ,....� Security Requirement as Allowed by Government Code 9. Resolution Designating Representatives Authorized to Bind District to Terms & Condit ions Governing Transfer of Federal Surplus Personal Property 10. Letter from Blue Cross re Rates & Proposed New Program; Review & Possible Direction 11 . Review & Direction re Ordinance 78-01 , Changing Domestic Electric Rates, Combining Energy Charge with Fuel Charge 12. Review & Direction re Establishment of Policy Providing Terms & Conditions of Leaves of Absence for Managerial Employees 13. Miscellaneous DISTRICT ENGINEER'S REPORT DISTRICT COUNSEL'S REPORT: 1 . Status Report on Atkinson vs. TDPUD 2. Review of Action re Delinquencies in West River Street Assessment District 3. Miscellaneous PLANNING DEPARTMENT NOTICES CORRESPONDENCE POSSIBLE EXECUTIVE SESSION re Legal & Personnel Matters �-- ADJOURNMENT -2- a3� NOTICE OF AGENDA CHANGE Pooft REGULAR MEETING of the BOARD OF DIRECTORS 7:00 P.M. TUESDAY FEBRUARY 21 , 1978 DUE TO THE NEED TO COMPLY WITH LEGAL REQUIREMENTS TO POST PUBLIC NOTICE OF VACANCY EXISTING ON THE BOARD OF DIRECTORS, THE FOLLOWING ITEM OF SPECIAL BUSINESS IS DELETED FROM THE AGENDA OF THIS MEETING: 1 . Resolution appointing Jack Wilson to vacant position of Director-at-Large created by the resignation of Poona Peggy Alexander Oath of office and seating of new Director. '4/',do%.— 1, A. Milton Seymour Clerk of the Board smc 001 TRUCKEE-DONNER PUBLIC UTILITY DISTRICT r— NOTICE OF VACANCY i PURSUANT TO GOVERNMENT CODE SECTION 1780, NOTICE IS HEREBY GIVEN THAT THERE HAS BEEN A VACANCY CREATED ON THE BOARD OF DIRECTORS OF THE TRUCKEE-DONNER PUBLIC UTILITY DISTRICT BY THE RESIGNATION OF PEGGY ALEXANDER. 1 i Dated: February 17, 1978 i i """" A. Milton Seymour ' Clerk of the Board r REGULAR MEETING FEBRUARY 21 , 1978 In the absence of President Sutton, the regular meeting of the Board of Directors was called to order by Vice President Maass, at 7:06 P.M. in the Board room at the District office. ROLL CALL: Directors Huber, Kuttel and Maass were present. Director ,,...� Sutton was absent. EMPLOYEES PRESENT: A. Milton Seymour and Susan Craig. Mary Chapman ar- rived at the meeting at 9:20 P.M. CONSULTANTS PRESENT: District Counsel Grumer arrived at 7:09 P.M. Dis- trict Engineer Cook was not present at the start of the meeting, but was expected. OTHERS PRESENT: L. Martin Duffy and Don Strand. CORRECTIONS & APPROVAL OF MINUTES OF JANUARY 4, 1978 REGULAR MEETING Item tabled in order to provide the Directors an opportunity to compare the draft minutes, President Sutton's corrections, and the verbatim draft at Vice President Maass ' suggestion. Directors Huber and Kuttel concurred. BILLS FOR BOARD APPROVAL AND STATEMENT OF GENERAL FUND Mr. Seymour explained that the Blue Cross insurance payment in the amount of $91 .92 for Merrilyn Marsh, who is currently on maternity leave, was paid to the District by the employee, it being possible to retain cover- age for a 90-day period at the employees expense. A motion was made by Director Huber and seconded by Director Kuttel that the bills be paid. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. Mr. Seymour noted that the District presently has $340,000 ac- cumulated in Restricted Funds, Local Agency Investment Fund plus interest; $300,000, General Fund; and $166,000 in Refund Monies for a total of $806,000. MONTHLY FINANCIAL REPORT Mr. Seymour explained that the "Real Property - land not in use" figure included some land presently in use; that figure will be changed after consulting with the auditors. He also advised that the bookkeeper has indi- cated some of the property belongs to the Electric Department rather than the Water Department as was thought. Work is being done to clarify this matter. Mr. Seymour advised that the District had interest in the month of November. The Water Department showed a net loss of $1 ,086 for 1977 vs. $7, 123 for 1976. The Electric Department showed a gain of $16,580 for 1977 vs. a loss of $16,874 for 1976. The District has improved in those Departments over the previous year for a net gain for the month of $13,905. Through November, the District shows a net margin of $239,415, which is up approximately $150,000 over the previous year. General Administrative expenses and Outside Service expenses were less in 1977 than in 1976. One item which has been up for the last few months is Customer Account expenses which is largely due to having two, actually 12, meter readers, two front office clerks and a billing clerk. The Directors and General Manager discussed interest expense which is largely due to the outstanding balance on the REA loan and also discussed alternatives. Vice President Maass stated this matter should be discussed and a decision made after the budget has been completed. CALIFORNIA MUNICIPAL UTILITIES ASSOCIATION Directors Kuttel and Huber discussed the CMUA Conference. Director Kuttel indicated he would attend the conference on Wednesday, February 22nd. 2/21/78 Pg. 1 SPECIAL BUSINESS RESOLUTION APPOINTING JACK WILSON TO VACANT POSITION OF DIRECTOR-AT-LARGE District Counsel Grumer advised that it was not possible to appoint Mr. Wilson, the proper posting period not having been fulfilled in compliance with Government Code Section 1780. Mr. Seymour advised that the Notice of Vacancy has been posted. Vice President Maass questioned Mr. Grumer regarding the term of appoint- ment. Mr. Grumer stated he would research the appropriate Code Sections, ob- tain a ruling from County Counsel , and advise the Board. Vice President Maass noted that, possibly, an item regarding the new Director would appear on the March 6th agenda. REVIEW OF PROPOSED ORDINANCE CHANGING ELECTRIC RATE SCHEDULES FOR COMMERCIAL USERS Mr. Seymour advised that there had been no requests by the public to re- view the draft ordinance changing electric rate schedules for commercial users. The demand charge and effective date of the proposed ordinance were dis- cussed by the Manager and the Directors. The effective date will be thirty days after the date of adoption of the ordinance. The public hearing was opened at 7:30 P.M. by Vice President Maass. Mr. Duffy, an interested member of the community, asked if it was the Board's in- tention to adopt the ordinance at this time. Director Huber noted that the change in electric rate schedules for com- mercial users would not change income to the District, but does reduce rates for approximately 75% of the commercial GS1 customers. Mr. Seymour advised that the reason for the thirty day waiting period before the effective date of the ordinance was to allow the public to protest, petition for an election or referendum. He also noted the ordinance, if adopt- ed, will be published in full in the local newspaper. Mr. Duffy stated that his concern was that the general public would have some opportunity to review the ordinance and respond. Director Huber advised that less than 100 kilowatt users will be charged more and over 2500 kilowatt users will be charged slightly more; those cus- tomers in between those figures will benefit. Vice President Maass declared the public hearing closed at 7:43 P.M. Director Huber moved for the adoption of the ordinance (7802) changing elec- tric rate schedules for commercial users and incorporating one billing for usage and fuel charge; the motion was seconded by Director Kuttel . ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. DEMONSTRATION OF NEWLY INSTALLED HIGH-SPEED PRINTER FOR COMPUTER At 7:45 P.M. a recess was called by Vice President Maass and Libby Wiser, the District's computer operator, demonstrated and explained the new high- speed printer. The meeting was called back to order at 7:55 P.M. REVIEW OF PROPOSED ORDINANCE BRINGING DISTRICT PROCEDURES INTO COMPLIANCE WITH CURRENT REQUIREMENTS OF CALIFORNIA ENVIRONMENTAL QUALITY ACT "` Vice President Maass noted that a new draft of the CEQA ordinance had been presented to the Board which included Exhibit "A". This proposed ordinance was prepared according to the guidelines provided by Bond Counsel McElligott. District Counsel Grumer noted that he had reviewed the proposed ordinance and found it to be in proper form. Vice President Maass opened the continuation of the public hearing at 8:00 P.M. Mr. Seymour verified with the executive secretary that the proposed or- dinance had been made available for public review at the Nevada County Library, Truckee Branch. .. i... inn .. 447�� At Mr. Duffy's request District Counsel Grumer explained that the proposed ordinance basically dealt with projects that could have an effect on the en- vironment and the reporting requirements required thereunder. He noted that the extent of the reporting varies depending on the potential harshness of the activity and the effect on the environment. He stated this ordinance would modify the District's 1973 presentation to conform with current law; the changes being very minor. He further noted that the Attorney General had made an op- inion that any project will require compliance with CEQA; he believed the County was presently litigating this matter. The public hearing was closed at 8:03 P.M. Director Huber moved for the adoption of the ordinance (7803) bringing District procedures into compliance with current requirements of the California Environmental Quality Act; Director Kuttel seconded the motion. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. The Vice President asked the minutes to show that the effective date of the Ordinance has been agreed to be April 1 , 1978, and that was included in the blank space on the Ordinance. REVIEW OF PROPOSED CHANGES IN RESOLUTION 7801 , ESTABLISHING POLICY REGARDING THE LEASE OF DISTRICT LAND Vice President Maass noted that the Board had received correspondence from Mr. Grumer clarifying modifications and changes to items 5, 7, 8a, 8h of reso- lution 7801 , a resolution establishing District policy regarding the lease of District land and the addition of number 9. Mr. Grumer clarified item number 6 and 7; he indicated item 6 would accent to the board secretary the advertis- ing requirements. The "reasonable time" noted in item 7 and zoning change were discussed by the Board and Mr. Grumer. A motion to adopt the resolution (7810) clarifying District policy regarding the lease of District land was made by Director Kuttel and seconded by Director Huber. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. It not yet being 8:30 P.M. , the time scheduled for the public hearing regarding the desirability of leasing the 10,000 square foot parcel on Highway 267 which has been declared unnecessary for District use, the Vice President r-� went on to the Manager's Report. MANAGER'S REPORT r Status of Customer Refunds due to Sierra Pacific rebate - Mr. Seymour advised that the District presently has one of the two programs necessary to make the rebate and can now enter all of the information from the meter books. The second program, which has to do with calculating the refunds and crediting them to the bills, should be ready soon. The post card to former customers has been prepared and is ready for print- ing; a special Post Office Box, number 1299, will be used on the post cards. Status of special mailing to customers re residential electric rate changes - The special mailing to customers regarding residential electric rate changes and the refund is presently being processed. Status of 1978 Budget - The Budget Committee met on February 7, 1978, and staff members met again on February 15th in a continued effort to finalize the budget. Mr. Seymour noted that it is a very difficult project - there wi 1 1 be a staff meeting regarding the budget on February 22, 1978. Status of insurance negotiations - Mr. Seymour advised that the District has not received the premium quotation from the insurance company as yet, however, there will be a binder and the District will continue to have coverage. Report regarding recent fluctuations in Sierra Pacific Power Company's fuel charge - Mr. Seymour advised that between October of 1976 and October of 1977 Sierra Pacific Power held the fuel charge rate constant at 1 .284� per kilowatt hour for electricity sold to the TDPUD. Starting with November usage, the fuel charge has fluctuated each month. For example, in November it was 1 .282� per kilowatt-hour, for December it was 1 . 18� per kilowatt-hour, and for January, 1 .395fi per kilowatt-hour. What this means to the District's customers is that bills they receive in February show a reduction in the fuel charge and bills they receive in March wi 1 1 show a considerable increase in the fuel charge. The fuel charge for February billings will be 1 .26� per kilowatt-hour; for March, 1 .5� per kilowatt hour. 2/21/78 pg. 3 No explanation has been given by Sierra Pacific for the wide fluctuation in the fuel charge. An attempt will be made to schedule a meeting with them to determine the cause for the fluctuations and to obtain a feeling as to what is likely to happen to the fuel charge in the balance of the year. Mr. Seymour noted that he thought it was interesting that the fuel charge assessed for usage in January, when added to the base fuel cost per kilowatt hour and adjusted for line losses, is considerably higher than the fuel charge assessed to Sierra Pacific's retail California customers under like conditions. Mr. Seymour invited Director Huber to accompany him when he meets with rep- res en to t i ves of S i e r ra Pac i f i c. The Directors briefly discussed the rate reduction by PG&E in the Bay Area, hydro power studies, Sierra Pacific "wheeling charges", the California Public Utilities Commission and Federal Energy Regulatory Commission, and their functions. SPECIAL BUSINESS REVIEW OF COMPLIANCE WITH POLICY RE SPECIFIC LAND LEASE PROPOSAL, PARCEL DESCRIPTION & LOCATION, OTHER BACKGROUND INFORMATION Mr. Seymour provided the Board with background information respecting the 10,000 square foot parcel on Highway 267 which was previously declared unnec- essary for District use. PUBLIC HEARING The Vice President opened the Public Hearing regarding the desirability of leasing the 10,000 square foot parcel on Highway 267 at 8:31 P.M. Because a resolution had not yet been prepared for review, this matter was continued until later in the meeting. DISCUSSION WITH COUNSEL AND POSSIBLE DIRECTION RE CONSULTING SERVICES WORK ORDER PROPOSAL FROM R. W. BECK & ASSOCIATES R. W. Beck's attempt to introduce a "hold harmless" clause to the ex- isting agreement with the District was discussed by Mr. Grumer. Mr. Grumer noted complaints with the R. W. Beck proposal : Y 1) Liability is limited to $50,000 on, the part of R. W. Beck 2) Hold harmless clause (which violates a section of the Insurance Code) 3) The fact that Beck would not be responsible to the District for performance of work, but the District would be liable for payment; the TDPUD could fire R. W. Beck only if fully paid up. After discussion by the Board and Mr.. Seymour, Director Huber moved that the Manager be authorized to write to R. W. Beck explaining that the Board has no objections to a Consulting Services Work Order; however, before the Board will authorize such a work order agreement, the language of the pro- visions will be reviewed and possibly changed by the District attorney. The motion was seconded by Director Kuttel . ALL DIRECTORS AYE BY VOICE VOTE. SO MOVED. RESOLUTION EXTENDING TIME OF PAYBACK OBLIGATIONS FOR PRORATED COSTS TO TEN (10) YEARS ON EXISTING AND FUTURE ELECTRIC LINE EXTENSIONS; REVIEW AND POS- SIBLE ACTION After a brief discussion, Director Kuttel moved, and Director Huber sec- onded, that the Board adopt the Resolution (7811) extending time of payback obligations for prorated costs to ten (10) years on existing and future elec- tric line extensions. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sut- ton, absent. SO MOVED. By consensus, the Board agreed that Mr. Seymour should advertise concerning the extended time of payback obligations on ex- isting and future electric line extensions. RESPONSE FROM TRUCKEE SANITARY DISTRICT RE JOINT MEETING TO EXPLORE POSSIBLE CONSOLIDATION OF DISTRICTS Vice President Maass noted that, after speaking with Marge Adkerson of the Truckee Sanitary District Board, it was his opinion that the TSD Board had not been approached in an official fashion concerning the response dated February 81 1978, from Jack Marquette, Manager of the TSD. 2/21/78 Pg• 4 4e--P6_ The Vice President asked the minutes in indicate Director Sutton's objection to the NRECA Report being supplied before the Truckee Sanitary District Board is aware of the request by Mr. Marquette. The Board agreed that reports and information requested by the Truckee Sanitary District should be provided; also, Mr. Seymour is to provide cor- respondence forwarding such documents and requesting like information in- cluding legal liability information. Such letter is to be directed to Mr. Marquette with copies to each of the TSD Board members, and is to clearly state its compliance with the Sanitary District's requests. Director Kuttel moved, and Director Huber seconded, that the Board direct the Manager to follow up on the merger proceedings between the Truckee Sani- tary District and the Truckee Donner Public Utility District. In his letter to the TSD, the Manager is to request a copy of the Truckee Sanitary District Annual Financial Report as prepared by their auditor, copies of any corres- pondence from the TSD attorney to the TSD Board respecting mergers, acquisi- tions, etc. and a copy of the Annual Report of Financial Transactions to the State Controller's office. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. MANAGER'S REPORT RE OUTSTANDING "WILL SERVE" LETTERS; REVIEW AND DISCUSSION WITH STAFF RE LIABILITIES; POSSIBLE DIRECTION Mr. Seymour reported that a review of the will serve file has been made and no outstanding, active applications for wi 1 1 serve letters, other than one by Albert Day and C. S. Beavers for an 80-acre parcel that is outsite the District, are pending. Regarding letters that have been issued, aside from Gateway Estates and Northrup Construction, all have expired for lack of approval on the part of the County. By consensus, the Board requested that a draft resolution respecting will serve letters be prepared for consideration at the next regular meeting. REVIEW AND DIRECTION RE POSSIBLE APPLICATION FOR R.E.A. LOAN FOR ELECTRIC SYSTEM IMPROVEMENTS f The pros and cons of an R.E.A. loan, general obligation bonds, revenue bonds, and use of available District monies were discussed. Director Huber moved that the Board cons i der.iand investigate the means by which to finance necessary repairs to the Electric System by a means other than using the R.E.A. financing. The motion was seconded by Director Kuttel . ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. The Board was in agreement that the R.E.A. loan was not to be turned down, but other methods of obtaining the funds would be investigated. Mr. Seymour requested that consideration of hiring a financial consultant be an item on the next regular meeting agenda. The Board agreed unanimously. Vice President Maass requested that a report on the procudures needed if the Board chooses to pursue G.O. bonds or revenue bonds be placed on the agenda for the next regular meeting. Mr. Seymour advised that Peggy McElligott, Esq. will quote the District a fee for acting as Bond Counsel , and will informally recommend financial con- sultant firms. ESTIMATE OF COSTS TO SEND MANAGER TO R.E.A. MANAGERS' CONFERENCE; POSSIBLE DIRECTION Mr. Seymour estimated the costs involved in attendance at the R.E.A. con- ference, the total figure being approximately $750. He stated he felt attend- ing would be an invaluable experience. Director Kuttel moved that the Board give the Manager the opportunity to go to Washington D. C. to the R.E.A. Manager's conference, and that the District pay the expenses. The motion was seconded by Director Huber, ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. Mr. Cook arrived at the meeting at approximately 9:07 P.M. 2/21/78 pg. 5 FARMERS HOME ADMINISTRATION LOAN/GRANT PROJECT Status Report; Progress on fulfilling conditions - Respecting Project 77-1 , the letter to FmHA requesting an extension of time, the bid opening and legal notice were briefly discussed by the Board and Mr. Cook. Mr. Cook advised that, thus far, 29 sets of drawings had been handed out to pros- pective bidders. Items to be completed on the check list were reviewed. Review and direction re Engineer's draft letter re implementation of Chapter XI recommendations in water system analysis report ' Mr. Cook noted his deferral of the draft preparation of cor- respondence respecting the implementation of Chapter XI recommendations in the water system analysis report after the last regular meeting. Mr. Cook advised, that with more specific Board direction, he was willing to prepare such draft letter. After discussion by the Board of a new rate structure, its application to Chapter XI recommendations, the 1978 budget, it was dedided that a special meeting be held regarding the new rates. Mr. Seymour will provide comments on each Section of Chapter XI for presentation to Mr. Cook. DESIRABILITY OF LEASING 10,000 SQUARE FOOT PARCEL ON HIGHWAY 267 WHICH HAS BEEN DECLARED UNNECESSARY FOR DISTRICT USE The Public Hearing concerning the leasing of the parcel on Highway 267 was reopened at 9:37 P.M. Mr. Seymour read to the Board and public the resolution setting forth minimum bid requirements on the parcel located on Highway 267. A change was made in the proposed resolution from the word "surplus" to ''un- necessary for District use." There being no comment from the public, the hearing was closed at 9:40 P.M. Director Huber moved, and Director Kuttel seconded, the ,adop- tion of Resolution 7812 setting forth the minimum bid requirements for the 10,000 square foot parcel located on Highway 267. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. REVIEW AND POSSIBLE DIRECTION RE DRAFT BID POLICY Mr. G rumen's letter regarding the draft bid policy was dis- cussed briefly; no action was taken. REVIEW OF SIERRA PACIFIC REQUEST FOR SERVICE OUTSIDE DISTRICT BOUNDARIES Different forms -of acknowledgment by Sierra Pacific Power Co. for TDPUD service outside the District boundaries were discussed by Mr. Grumer and Mr. Seymour. Mr. Grumer suggested a memorandum of understand- ing with a time limit to be executed by the District and Sierra Pacific. Director Huber moved, and Director Kuttel seconded, that the Manager be authorized to send a letter outlining the responsibilities for Sierra Pacific and the PUD for service to the Michael Fowle property with a provision for the responsible party to sign for Sierra Pacific if they agree to the conditions. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; ---� Sutton, absent. SO MOVED. REVIEW OF BIDS FOR 500 kVA TRANSFORMER; MANAGER'S RECOMMENDATION AND POSSIBLE AWARD OF BID Mr. Seymour reported that the District received one proper bid from Wedco, Reno, which meets all specifications, in the amount of $4,350, including freight, with delivery 16 weeks after the order is placed. Director Kuttel moved, and Director Huber seconded, that the District award the bid to Wedco for the transformer. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. REVIEW OF BIDS FOR PLAIN PAPER COPIES; MANAGER'S RECOMMENDATION AND POSSIBLE AWARD OF BID Mr. Seymour advised that only one b i d was received by the Dis- trict from Tahoe Office Systems in the amount of $6,000 for the outright purchase of a Savin, Model 780 copier. He recommended the bid be awarded to Tahoe Office Systems on the condition that for the first three months the machine be rented with an option to purchase with at least a portion of the rent being applied to the purchase price. Director Huber moved that the District accept the bid from Tahoe Office Systems with the provision of a three month lease-purchase agreement to thoroughly check out the copier. The motion was seconded by Director Kuttel . ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sut- ton, absent. SO MOVED. RESOLUTION CALLING FOR BIDS ON GASOLINE & DIESEL FUELS; MANAGER'S RECOM- MENDATION; POSSIBLE ACTION After a brief discussion by the Directors and Manager regarding the prices the District is currently paying for gasoline and fuels, Director Kuttel moved, and Director Huber seconded, that the Board adopt resolution 7813 calling for bids on gasoline and diesel fuels. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. It was decided that the bid opening would be at 2:00 P.M. on March 20th; possible action respecting any bids received will be an agenda item for the regular meeting of the 20th. MANAGER'S RECOMMENDATION RE AFTER-HOURS CALL-OUT PROCEDURES; POSSIBLE DIRECTION Mr. Seymour requested that this item be deferred until the next regular meeting at which time he will have an exact quotation from North Tahoe Answering Service and Air Signal of California; also, he will have a price on pocket pagers. Mr. Seymour further noted that he would probably recommend a change from low-band to high-band radio frequencies at that time. The Vice President deferred this item until the March 6th meeting. RESOLUTION ESTABLISHING SPECIAL CHECKING ACCOUNT FOR REFUNDS AND DESIGNATING SIGNATORS AND SIGNING PROCEDURE After a 'brief discussion it was decided that the Vice President and Treasurer would be the appropriate persons to sign the refund checks, the President not wishing to be an authorized signator on any of the District ac- counts. Director Kuttel moved, and Director Huber seconded, that the Board adopt resolution 7814 establishing a special checking account for refunds and designating signators and signing procedure. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. Facsimilies of the current Vice President's and Treasurer' s signatures are to be provided to Bookkeeper, Mary Chapman, in order to have stamps made for use on this special account. The stamps are to be kept in the District safe; Director Maass requested that such stamps be destroyed as of November 1st. REVIEW AND POSSIBLE DIRECTION RE TAHOE NATIONAL BANK REQUEST FOR WAIVER OF SECURITY REQUIREMENT AS ALLOWED BY GOVERNMENT CODE After a brief discussion, and holding the belief that Arthur Young & Company at one time advised the District not to sign a like waiver, -- Director Huber moved that the Board deny Tahoe National Bank's request for a waiver of security requirement. The motion was seconded by Director Kut- tel . ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. RESOLUTION DESIGNATING REPRESENTATIVES AUTHORIZED TO BIND DISTRICT TO TERMS AND CONDITIONS GOVERNING TRANSFER OF FEDERAL SURPLUS PERSONAL PROPERTY Mr. Seymour summarized the procedures required by the District in order to purchase Federal surplus property. After a brief discussion, Director Huber moved that the Board adopt resolution 7815 designating rep- resentatives authorized to bind the Truckee Donner Public District to the terms and conditions governing the transfer of federal surplus personal property. The motion was seconded by Director Kuttel . ROLL CALL: Huber, 2/21/78 pg. 7 aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. It was agreed that the Manager is the designated, authorized representative. LETTER FROM BLUE CROSS RE RATES AND PROPOSED NEW PROGRAM; REVIEW AND POS- SIBLE DIRECTION Mr. Seymour reported that the Blue Cross Insurance premiums will be raised approximately $20 per employee per month. Notice from Blue Cross also brought to the attention of the District an alternate plan. Mr. Seymour advised that the present policy cannot be changed without Union agreement; he stated he felt this was a potential bargain- ing point for negotiations with the Union in the future and would be de- -�— sirable from the District's point of view. REVIEW AND DIRECTION RE ORDINANCE 7801 , CHANGING DOMESTIC ELECTRIC RATES, COMBINING ENERGY CHARGE WITH FUEL CHARGE After a brief discussion, in order to keep the District or- dinances consistent in regards to the combination of electric and fuel charges, Director Huber moved that a new ordinance be prepared to clarify and combine the fuel charge with the energy charge as a line item on res- idential rates, the rate of the fuel charge to continue to be shown. The motion was seconded by Director Kuttel . ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye; Sutton, absent. SO MOVED. Vice President Maass noted that o public hearing will be set for March 6th regarding this ordinance. REVIEW AND DIRECTION RE ESTABLISHMENT OF POLICY PROVIDING TERMS AND CON- DITIONS OF LEAVES OF ABSENCE FOR MANAGERIAL EMPLOYEES By Direction of the Chair, this item was tabled. DISTRICT ENGINEER'S REPORT Sanders Well No. 1 - Mr. Cook reported that he had had a discussion with Dr. Sharp who indicated a step draw down for Sanders Well No. 1 would be initiated within a few days; he advised that Bill Nork would be present and that he would be present some of the time. '= DISTRICT COUNSEL'S REPORT Status report on Atkinson vs. TDPUD - Mr. Grumer reported on the communi- cation between himself and Mr. Mayhew, special counsel for the District. Mr. Seymour advised that Daven Morey would be deposed on March 4th in Sacramento; special counsel will be contacting him prior to such deposi- tion. A trial date of April 11 , 1978, has been set. Review of action re delinquencies in West River Street Assessment District - After a brief discussion, Mr. Cook advised that he would provide sample letters the other Districts use in collections of delinquent accounts to Mr. Grumer for implementation in the matter of delinquencies in the West River Street Assessment District. MISCELLANEOUS No miscellaneous items were discussed. PLANNING DEPARTMENT NOTICES The Planning Department Notice for a shopping Center on Donner Pass and Old Highway Road was discussed. Mr. Seymour noted that there were no problems with service to the parcel for electricity and water; the usual , customary fees will have to be paid to the District. Mr. Seymour indicated that he would correspond with the Planning Department. CORRESPONDENCE The invitation from the hospital regarding the new wing was discussed. Mr. Seymour noted that he would investigate respecting an oc- cupancy permit for t-he new addition to the hospital and possible fees owed to the District. EXECUTIVE SESSION The Vice President adjourned to Executive Session at 10:45 P.M. in order to discuss legal and personnel matters. RETURN TO PUBLIC SESSION The regular meeting reconvened at 11 :58 P.M. No action was taken as a result of Executive Session. ADJOURNMENT There being no further business before the Board, Director Huber moved, Director Kuttel seconded, and the Board unanimously agreed f ^ to adjourn the meeting. The meeting was adjourned at 11 :59 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Ja s A. Maass, President Approved: . 1-:6- i 7 Iq Signed: �7 Susan M. Craig, Executive Secretary 2/21/78 Pg• 9 } TRUCKEE DONNER PUBLIC UTILITY DISTRICT STATEMENT OF GENERAL FUND - February 17, 1978 Bank Balance - February 2, 1978 $ 2285994.64 Truckee Electric and Water Revenue 57,039.74 Donner Lake Electric Revenue 6 9233.26 Standby Revenue 315.00 Electric Connection Fees 350.00 Miscellaneous Billings Revenue 29077.59 - E Miscellaneous Revenue 449.66 $ 295 9459.89 Approved Billings $ 175,727.97 Less Unapproved: T.T.S.A. ( 139.50) $ 175,588.47 Bank of America - Federal tax deposits 25380.37 C.M.U.A. - Preregistration fee to 46th Annual Conference - Kuttel , Huber 60.00 Solar Energy Workshop - Kuttel , Huber 40.00 County of Nevada - Encroachment permit for Deerfield line 100.00 Department of Benefit Payments - Back payment due on unemployment insurance, qtr. ended 6/30/77 64.94 I.B.E.W. - Union dues, 2/78 160.00 Local Government Agency Investment Fund - transfer of general fund 50,000.00 Merri lyn Marsh - computer consulting services 30.00 Red Lion Motor Inn - hotel accommodations for Kuttel and Huber at C.M.U.A. conference 64.20 T.D.P.U.D. - Transfer to cover Consumer Deposit interest paid 3.72 U.S. Post Office - Postage permit #1 400.00 - Special mailing for rate change and refund 500.00 Refunds: Ed Elrod - Recalculation of bill , two meters billed as one 104.25 $(2299495.95) PAYROLL 2-15-78 OT DT Standby Gross Net Barry 629.20 481 .89 Chapman 117.48 744.04 535.08 Connell 682.00 495.37 Craig 500.00 378.38 Grow 874.72 639.06 Jones, N. 36.81 396.73 305.59 Lopez 55.38 166. 14 186.40 1227.36 792.26 Pomponio 499.84 380.31 Reynolds 169.56 1011 .68 728.41 Rose 26.21 48.93 690.26 452.62 Ru l l y 651 .20 445.74 Seymour 1250.00 848.18 Silva 134.19 89.46 99.40 1202.27 818.90 Slattery 750.00 560.62 Straub 27.69 64.61 904.54 626.22 Tamietti 6.11 65.12 787.55 627.81 Waltrip 492.00 385.55 Wiser 46.86 546.70 377.15 450.73 603.82 285.80 13840.09 9879.14 Temporary and Part time Employees : Samuel 83.75 75.80 Shapiro 327.20 274.33 410.95 350.13 Totals 450.73 603.82 285.80 14251 .04 10229.27 $( 10,229.27 Bank Balance - February 17, 1978 $ 55 9734.67 Bills for Board Approval Blue Cross - Insurance payment for Marsh, 2/78 91 .92 Twin States Drywall - warehouse lunchroom 95.00 ( 186.92 Bank balance after payment of above $ 55 9547.75 TRUCKEE-DONNER PUBLIC 11TT1 TY DISTRICT BALANCE SHEET NOVEMBER 30, 1977 ASSETS MARGINS AND LIABILITIES Facilities, Buildings, Land: Margins: Plant in Service Operating margins - Cumulative 1 ,003,099 Electric plant 2,1639784 since 1927 Water plant 9329463 Other equities - Profit on sale 6009108 General plant 3479655 of non-utility property Less accumulated depreciation (197679824) Year to date margins 239,415 Net Plant in Service 1 ,676,078 Total Margi ns 198429622 Construction work in progress 469762 Acquired plant 49129 Long-Term Debt: Net Utility Plant 1 9726 9969 REA bonds payable 367,573 Note payable to Sierra Pacific 745055 Power Company Real Property - PUD House, 245925 Sewer assessments payable 15,797 Land not in use Other - Computer loan, truck loan 26 9954 Total Long-Term Debt 484,379 Restricted Funds 3659894 Current Liabilities: Current Assets: Accounts payable 2749812 Cash 4129330 Consumer deposits payable . 272850 Notes receivable - Van Wetter 1 ,500 Accrued liabilities - Payroll taxes, 26 9868 Accounts receivable - Electric 1705061 interest on notes and water us age,bi l l i ngs Total Current Liabilities 3299530 Accounts receivable, Other - Line 46,228 extensions, connection fees, misc. Materials and supplies 197,085 Customer Advances For Specific Improve- 2959450 Other current assets - Insurance 65989 ments to System (Restricted Funds) prepmt, interest receivable, future line extension costs Total Current Assets 834,193 TOTAL ASSETS 2,951 ,981 TOTAL MARGINS AND LIABILITIES 29951 9981 TRUCKEE DONNER PUBLIC UTILITY- DISTRICT STAT EM I- ' EV ENU ES AND EXPENSES For the month of and months ended _November, 1977 ELECTRIC DEPARTMENT WATER DEPARTMENT ELECTRIC AND WATER TOTAL Current Month Year to Date Current Month Year to Date Current Month Year to Date 1976 1977 1977 1976 1977 1977 1977 1976 1977 Net Revenues 144,972 181 ,650 198771255 14,790 20,671 2169646 202,321 1 ,925 9431 23,093,901 Purchased Power 120,989 1285926 152493,407 - - - 128,926 11238,116 1.3,2493,407 Operating Expenses 61618 5,530 559,304 59504 79902 805685 13,432 1159027 1359989 Maintenance Expenses 31736 45053 429796 1 9365 19970 32,142 69023 549812 74,938 Customer Accounts Expenses - 69785 9,730 779750 1 ,729 29978 18,715 12,708 88,719 96,465 Meter reading, billing, customer services General and Administrative Expenses 95217 79482 805499 3,950 3,207 355177 10,689 86,074 1153,676 Outside Services 85434 1 ,169 545699. 65778 39728 259254 49897 1129066 799953 Depreciation 6.3855 79,007 761,365 21548 29589 28,429 99596 1029873 104,794 Interest Expense on Loans 1 ,142 25264 129284 39 ( 617) 29178 19647 223,568 14,462 Unallocated Overhead ( 11,930) ( 1 ,091) ( 7,946) - - - ( 1 ,091) 39712 ( 7,940 Total Operating Expenses 1611,846 165,070 1 5,641 5158 21 ,913 21 9757 222,580 1869827 1 ,823,967 1 98639738 Total Operating Margins ( 169874) 169580 236,097 ( 79123) ( 1 ,086) ( 59934) 159494. 101 ,464 2309163 Other Income and Expenses - - - - - - ( 1 ,589) 129961 99252 Net Margins - - - - - - 13,905 114,425 2399415 () Indicates loss in margins TRUCKEE-DONNER PUBLIC UTILITY DISTRICT POST OFFICE BOX 309 A TRUCKEE, CALIFORNIA 95734 TELEPHONE 587 3896 February 17, 1978 MANAGER'S REPORT 1 . STATUS OF CUSTOMER REFUNDS DUE TO SIERRA PACIFIC REBATE The District is still waiting for the computer programmer to deliver the -programs necessary to make the rebate. The programmer has in- dicated that there is some difficulty debugging the program and have asked that the District be patient. Otherwise, we are ready to start processing. 2. STATUS OF SPECIAL MAILING TO CUSTOMERS RE RESIDENTIAL ELECTRIC RATE CHANGES The special mailing to customers regarding residential electric rate changes is presently being processed. 3. STATUS OF 1978 BUDGET The Budget Committee met on February 7, 1978, and staff members met again on February 15th in a continued effort to finalize the budget. We hope to have the budget completed by March 1 , 1978. 4. STATUS OF INSURANCE NEGOTIATIONS There have been no new developments respecting insurance negotia- tions since the last report. 5. REPORT REGARDING RECENT FLUCTUATIONS IN SIERRA PACIFIC POWER COMPANY'S FUEL CHARGE Between October of 1976 and October of 1977 Sierra Pacific Power held the fuel charge rate constant at 1 .284 per kilowatt-hour for electricity sold to the TDPUD. Starting with November usage, the fuel charge has fluctuated each month. For example, in November it was 1 .282� per kilowatt-hour, for December it was 1 . 18� per kilowatt-hour, and for January, 1 .395� per kilowatt-hour. What this means to our customers is that bills they receive in February show a reduction in the fuel charge and bills they receive in March wi l 1 show a considerable increase in the fuel charge. The fuel charge for February billings will be 1 .26� per kilowatt-hour; for March, 1 .5� per kilo- watt-hour. No explanation has been given by Sierra Pacific for the wide fluctua- tion in the fuel charge. An attempt will be made to schedule a meeting with them to determine the cause for the fluctuations and to obtain a feeling as to what is likely to happen to the fuel charge in the balance of the year. It is interesting to note that the fuel charge assessed for usage in January, when added to the base fuel cost per kilowatt-hour and adjusted for MANAGER's REPORT February 17, 1978 line losses, is considerably higher than the fuel charge assessed to Sierra Pacific's retail California customers under like conditions. AMS/smc -2- TRUC KE - E DDNNER PUBLIC UTILITY DISTRICT POST OFFICE BOX 309 TRUCKEE, CALIFORNIA 95734 TELEPHONE 587 3896 REGULAR MEETING February 21 , 1978 AGENDA ITEM #5, Unfinished Business MANAGER'S REPORT RE OUTSTANDING "WILL SERVE" LETTERS; A review of the Will Serve file has been made and no outstanding, active applications for will serve letters, other than one by Albert Day and C. S. Beavers for an 80-acre parcel that is outside the District, are pending. Regarding letters that have been issued, aside from Gateway Estates and Northrup Construction, all have expired for lack of approval on the part of the County. The District does anticipate another request for a 15 duplex development on Palisades Drive. From what is known about the project, there will be no difficulty in issuing the letter to the developer.