HomeMy WebLinkAboutMeeting MinSPECIAL MEETING
July 16, 1982
In President Haass' absence, Vice President Corbett called the special
meeting of the Board of Directors of the Truckee Donner Public Utility Dis-
trict to order at 2:40 P.M. in the TDPUD Board room.
I ROJLL^ALL: Directors Corbett, liuber, Kuttel and VanLandingham were present.
CONSULTANTS PRESENTi Richard Blumenfeld of Arthur Andersen s Co. was present.
EMPLOYEES PRESENT: James Ward, Mary Chapman, Kay Pomponio and Susan Craig
were in attendance.
OTHERS PRESENT: There were no others present at the meeting.
REVIEW AND POSSIBLE ACCEPTANCE OF THE ANNUAL AUDIT CONDUCTED BY ARTHUR ANDERSEN
AND COMPANY
Mr. Blumenfeld noted the firm of Arthur Andersen, in accordance with the
generally accepted auditing standards, has examined the balance sheets of the
District as of December 31, 198J, and the related statements of net revenue
and funds.
I
Mr. Blumenfeld explained that the FmHA indentures, which secure the prom-
issory note and bonds, require the District to establish and maintain rates
and charges to produce net revenues equal to not less than 1.2 times the ag-
gregate amount of the principal and interest due within the next twelve months.
In addition, they require the District to establish separate special accounting
funds. Since the promissory note and bonds were issued, the District has not
met and fulfilled the requirements of certain indenture covenants. In the e-
vent of a default, the holder of the aggregate principal amount shall be en-
titled, upon notice in writing to the District, to declare the principal due
and payable immediately. As a result of Uie District's failure to Meet um.-
tain of the indenture covenants, the total amount of these obligations has
been classified as current liabilities in the financial statements. He noted
that this situation developed because certain clauses in the documents prepared
by Bond Counsel Sperry were incorrect. Amendments should be made to correct
the documents, he stated, as soon as possible and at no cost to the District.
The Board was in agreement.
Mr. Blumenfeld briefly reviewed with the Board the balance sheets, state-
ments of net revenue, statements of funds provided for additions to utility
plant, and the notes to financial statements.
Director Kuttel requested a monthly statement of restricted fund balances.
Manager Ward agreed to the preparation of such a report.
Director Huber suggested that Note Number 1 include Placer County as
well as Nevada County, since the District has annexed certain portions for
service.
The Dart restricted funds were discussed, and it was determined that re-
search of the Dart-PUD agreement should be conducted for the purpose of identi-
fying the specific use of the funds on deposit.
Arthur Andersen & Company will not, Mr. Blumenfeld stated, be preparing
the audit in final form until the attorney assigned to the Defer case has re-
sponded to their request for information.
The Board briefly discussed the proposal from Arthur Andersen to serve
as the District's auditors for 1982, for a fee of $21,000, and a separate
arrangement for performing other financial assignments.
There being no further business before the Board, Director Kuttel moved,
and Director Huber seconded, that the meeting be adjourned. ALL AYE BY VOICE
VOTE. SO MOVED.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Susan M. Craig
Deputy District Clerk
5 d\m» g,
5pSi A. Maass, President
7/16/82 pg. 1