HomeMy WebLinkAboutCorrespondence October 18, 1076
from Pat Sutton
T:jFU- Director
,ox 1123
Truckee , Ca. 95734
�.. re s Pares 18 8 19 of NRECA Vana�-_ement
Audit, "S.pecial Summary of
Current Crises"
The 19 ra.?e "Resort of a Vanacrement Audit for the Truckee Donner
PUD" was r.repared by Ervin R. Baker, lenior I,:ana,rerrent Consultant
for the National Rural Electric Coon_ erative Association, 2000
Florida Avenue N.W., Washin,-ton, D.C. 20009 .
The intent of this si?rvey was obvious from the . bezTinnin�_-.s to
sustain and G+rrvort the r.resent ma_na=-e^•er_t of the Di!:;trict by
the r-anacer and the board rya ority.
^'he 10RE'CA survey service was brouF-ht uo without rri or inforr a_-
ticn to the Board or arrer_da notation durinFr the 1:anaL-er' s Resort
to��zard the end of the July 8 , 1976 Board i..eeting,. V ithout knowing
it even be discussed , Director John Craig had left the
r.eetinr at 12% 30 A .I::. after the Chairman had refused a. vote on
a r^otion ua.d.e and seconded to adjourn the meetin±s.
During- the :'.iscucr=inn, the mana:rer exrressed the or.inion that
"it could be h.elT—ful in the recall," and Director 1'•.obert Christensen
Paid , several times , "that would be a doer-one good idea." ' The
onlv recall that was rendinr- at that tire was a recal_1 election
that had been set for LSr. Crai5• and me . The authorization for
r- the stud�r .,.as a 3-1 vote , 'r:ith Director CiraiL- absent.
The . re-nort itself is a sur..Pr`'icial review of the r^annr-erient of
t`ie District, co-t "4;2800 rlus ex-nenses. of an un?eter7-in_ed armount, '.
afrd dea.ls '"are_ in the rre lu'iices Pn c)ninionr, of the r" na-er ?rid
ti,e board. rr? ior3t» than it does with an in- ie•rth of the
Di strict' rrobler.•c .
The consultant ,orkr for the 1ational u?�=1 "lectric Conrerative
Association, which is an orF-?niz tion of rtrra_l electric coorerativec•
1,,, ich are not g•overnment?1 aFrenci es . The consultant - orked alone
and «gas in the area for. a week. he acknowledF-ed to re that he was
r�rfa. i Liar ^,,i.th Mate 12v^s and codes a.rr-lvin- to, the Di••^trict and
th=-t he had never conducted a survey of a vublic utility district
in California . Tie n•as rrovir?ed accorrodati ons at •^ hotel in Incline
,•�;,i ch isolated hiss from: ordinary contact in the corrm unity of
Truckee -?urinE- the time he was doing, the survey.
r.a!-e 2
Director Anderson has been on the Board since anointment in early
1 1_�71 with election as an incumbent in 1971. Director 'Haters won
election in 1071 a#'ter having,. served a- prior terr in the irnte
' 6os . They both contributed either to the creption or the
perpetuation of some of these problems .- policies and practices
d.uri.n� their tenure on the Board during• the time the consultant
describes as "lon?--standin,- stability." Due mostly to the efforts
trat Director Croia. and I made after election in late 1973, the
�- existence of these problems was established and solutions to some
of them were found .
.I am rlezed to have contributed to the disturbance of such
"Ion,--standing stability" which allowed problems of this magnitude
to �-_o unnoticed.
"DURIT:G THE TI.:E '''HEi•T .�.=i-':E AND HEIR SUFFURTEcS VTE-RE II` THE T,=AJC-F'.ITY
THE BOA-RD STABILITY REP.-AII'�IED BA2•ICAILY INTACT 'BECATJI� : Trig. MITiCiRITY
ACCEFTED ThE DECIS'IC 11 . CF Thr: P%7:AJORITY EVEI'I THRC,UG: THEY DID 1,10T
AGRiE V'1I H THE:._. "
An interesting contradiction3 a.r.parently it was not my election
=hi-ch disturbed the "a:oard stability" but l,.rhetkic,.r I am in the
miiority or the minority.
Actu?-I _ly, there -wes no cle. -rcut ;ra jority until. tl-�e election of the
of AnderF on, t•'=.ters , Ghr_S.. ens. en last November. Prior to
that , the t-o directors- v-ho are perh^r.s unjur;tly ?ccused of being
"r V st?rrorter^" voted "T?i.n^-. t re just ?bout =iC frenuently Ps 1•.r..
r.n�lers!on or T•.r. .':aterE> .
`.'•r"lit decisicnrr -' the bo.rd du—irrr th.^•.t tir-e were not alonp, any
-ranirul-tdd line beca>>5�e tr,ere .=as no concerted effort to control
a block of votes . Altho!?.rh the T!'..a iority the consultant refers to
held. so7,e co;mron views—and voted to-ether on some issues , the
individu.a l director' r rip:ht . to inderenLiert or,.inionc and positions
•Fra.g then reerected to sor.-e deFrree at least . This attitude was
rrobably -iiie Ivey f2ctor in "Poar:i stability" aB coe,rs_red to the
rresent s-i ttt'?t _nn -"1—re r—erp!7 e ! cxerted to keen the "_.late"
vote intact, and re^ >,cr t for more inforrr.atinn or more time are "
treated in zn arbitrpry manner. There is no concern for a consensus
as 1onsr as they have three voteL .
It is not true that the "n-inority" during that tire accer.•ted the
decisic:ns= of the r-a ority even tho.t r-h they -did not agree vri th them.
The mein difference was: t',a.t their opposition wps devious instead
of omen. 'wo exp.r•rles were their ar)-narent st)rnort for- the manager' s
delay in properly ar_d exr.edi tiously im•nler-entinr- recommendations
-"ro-r the accounting- ctlir Ar on orcrrations, and rrocedtzres , and their
efforts to thwart the gird r"nase of the rate study over a year agro
,kehich %•ra.s corrmis`sioned by a board majority but not :supported by
the manafier.
"IT I`% `.IGI:IFICAI:T THAT DURII G T-HIS TIP-E WHEPd VR-; . C-:tT`1'TUN 1NAS A
FEPrBLR 0r `^ram' r."A.7C CITY OTI THE BC:ARD THAT E:HE 11AD A CU1iFRC.NTATIUN
"•'ITN THE C] RA7. .P.,AII.AGER OVER A RELATIVEIY T."INOR ADP<II'�ISTRATIVE
!:'ATTER. `-AWE REPC:RTEDLY ADVISED HIP-1 AT THAT TIP."i. SHE WuULD OPPOSE
EVERYT}.II•iG HE ADVOCATED IN THE FUTURE. SHE HA.S CERTAINLY FULFILLED
TKAT COP1V7:ITNENT. "
The hRECA consultant makes this alleg-ation on the basis of informa-
tion sizrplied from only one source (the mana.-er) without any effort
to inquire of me about this incident in order to evaluate its
validity. It is a twisted interpretation of what actually happened.
I do not know what the consultant was told was a "a relatively
minor administrative matter." The confrontation actually had to
do with the director-manager relationship and function. The specific
problem that precirita.ted it had to do with fiscal responsibility.
During- the sprinxr of 1975 I had expressed concern at tsoard meetings
about two fiscal practices that the manager was responsible for&
1 - a delay in presentation to the Board of contractual
T;a.rrrents due on REA loans , SPPC Donner Lake Electric System
Ac-;uisition Agreement , Sanitary District Assessments , etc .
2 - the total of the bills presented for Board arrroval fre-
cuently resulted in an overdraft in the General Fund.
I1'either ( undue delay in meetin=7 contractual obli*Tations or a bounced
chec% `'or over : 100, 000) is good accountir_g practice in the conduct
of rrivate or -cublic business . I,.either of these problems is a
"re? ?tivel-• -minor administrative matter, " and the F;oa:rd itself, not
the !-,3nae-er, has t-7e ultirr,,te legal responsibility for Illov.in.-
r-ucln �d-i nj �-trP.fii ire rr-]cti ce -'_+nd rrocedure .
_;i nce cor-T la nt^. _-it Loard r-e_e.tinL-s did not seem to rectify the
sitt)53t2_on, in r-,- c.�ra.cit,, _ c Treasurer I consulted r.itPt the manaF-er
-In �1� ,-t I friendlN- conference , and I nro-
roced =olt.'ti oi.-. to these tt:,o problems . He seemed to be in perfect
ter_ree-t rnt v-!ith m.. Fo'+_tvti ons and I told hi -- I would rare_ent a
t.^ tti?E L>v^^":rG t0 establishpOl1C\r.
Cane of mar rrotiosals N-�-as for the Treasurer or a Finance Co-mmittee
-'rer t`-ie }<oard to partici-rate t,ith the manarer in a review of unpaid
bj_1.1- a.nd in the decisionc on wl-id.ch to recommend -to the hoard .for
pavment at each re.-u!?r meeting. This is a common practice in many
local P-encies and there is nothinsr improper about it . It could
:ave b en helr-ri?l. to the r^anar-er from the standroint of shared
rep r,onsibility for judgements th=tt have to be made when the District
does not have cuffj_cient fiends to pay all bills on time .
T)a r*e
i-lch to my sunrise , when I tried to rresent my policy recommenda-
tions to the Eoard, the ma.namer read a prepared statement in
vehement orr. notion to the proposal on review of unpaid bills ,
a.tt:?ckinL' me for ."interference with manaa:ement."
The followinsT day I confronted the manai7er about the unexpected
and redical chan-e in his position and his attack on me .
I had perceived problerrs in fiscal manap-ement which could be
resolved through board policy. I had approached the problems and
Trorosed solutions in a reasonable and responsible manner. The
manager had responded with unexpected retaliation, accusing me .of
an attempt to "interfere with manazerrent."
The rr.anaF-er was already aware that I had reason to doubt his ethics ,
his judgement, and his administrative ability based on prior events
during- 7 months time . There was no need for me to tell him that I
would orrose him on issi3es that I believed he should be opposed on
because he already had evidence of that. It would have been out of
character for me to "assure him that I would oppose everything he
advocated in the future ," and I did not make such a statement. I'm
sure , hoN�!ever, that it was plain to him that my efforts to work
tl) rou--h him as an anent of the board and my attempts to give him the
benefit of a doubt were ended .
,ghat I. did was to 'assure him that I would never again {rive him the
oprrortunity to prepare a written statement attacking me by priming
any idea , concern or proposal to him in advance , and that from that
ti-P for'::ard I vrould take my ideRs , concerns and pro_r.osals directly
to the �o?-^d. That is the path I ' ve purcued on matters the board
should be involver? in. In minor administrative matters having to.
r:o "'ith the *minutes , the -F-endn, etc . , tr:e m.en-ac-er sim-ply refused
to a.ccert responsibility.
Byrassinr the manes.er in rreli-inary discussion of board r•olicy
�-- idea^ and concerns and r.roroc-__ls is not a. --ood way to operate , nor.
the most rroductive . Under th-e cirC u!(1ctances , I ha-ve had no alter-
n-)tive . I refused to nRively -clpce myself in a.. position of vulner-
-a il-i tom' 3 - 'i_r„ or to risk fi)t?:re encounters with the mariRFer except
1n T,,-)blic r"eetin-r- 1f rof?si'lbl.P_ I had al;^E' C1s' necc-e 2v:'are t)-,at he
consictentl`r misinterrret- 7`.' 11t8 t1On , riV mOti.VCs , and :','h,-�.t I ' ve
said i redia.tel.-..r after I 've ,id it. I rr'co-n _ ed tr;;t it c,,ould be
i'lE:eeP -f'ar- for me to nre,,;,ent t,/1'1`"t£d lnterT-ret".tic ns -.F, i.":uch P.s
bl.e by ide2s r nd re-- ilec,ts ir. ' -r ltin r, a a fr mar
and by skin
�:ti ^ns anr? m '_int^- i"» 7ronos=.IF- in. bo^rl, -eetinf= ,-,-here there v:ere
"` tp f=E:F' an'd a tape-recOrd.er T()r 'futt.1-e Verification.
pare 5
Cj:_-' (IT' TTT(A I f�*- Cl; T�iE LUARD
AI -1 1- C A A I
TI BC)API) jjc 1,tk;FLV_i:L) TO ACEZIPT
I:L.Cj`:Icj.. " AJOIVITY. "
In Tort infr;tprces there is 3 '4ttle I can do ;-.fter P board decision
has been rpde . In tyro --ro inntces I have taken independent action
in tYe co-munity in oTTosition to a Board majority decision involving
con-e'7uences of extreme importance to the people of the Districts
3 ) acce-otance of the Tahoe Donner water lines ; and
2) the application for a permit to lease State land for the
Donner lake Intake .
In both matters , the board majority decision was -rushed and, in my
opinion, ianored the realities of the -problems . In both matters ,
they took arbitrary action in a heavy-handed fashion. They refused
le,,-al counsel to delay temrorarily on the water-lines acceptance ,
and refused anpeals for additional time for input , consultation,
possible ne-otiation , and further consideration although it would
have been reasonable and -orudent to do so. They refused open-minded
end valid conr.lr'erption of alternatives proposed on two different
occasions F! viable District pcClition in the Y'ay and July
hp-r-in— ',efore the State land's Commission. In both instances ,
t),e, er^ea r--ore interestecl in aspertint- their power throuf'h a
MR .jority vote tl-,Pn in assessing the long-ranx-e problems for the
Di strict or in exi-)Iorincr -com-r-romises .
In both I felt my Tnora.1 and lec.al resr-onsibility to the
c r-n:-m. -,it-%r f=r �rp.ter th-n any so-called responsibility to a
bo-rc, —Plcrity cllecif--ion i^'hli_ch T had orposed on the basis of -facts ,
=rnled,Pe , rnd uznc'serst=ndin.7.
that 1 miFht disagree with.
0 -t bo,-rd r-n .jor4ty decisions
in bot"') of these im-_-ortFnt ratters . there v:as a "court of higher
a-r T-e n.I" a the co=--unity itself in the -case of the problems and
cO---'.--1ecte-1 v.,ith t.'e ,.ester-lines acceptance-, and the State
_; n the care of the Donner Lake permit arplication.
the _'!�tter, the S-r-cia,2 Counsel for the Di•�trlct had
F-?.vic-.ed r.-c two ^rC a -,-) th,-A �ns 2. r-Anorit.- Board member I could
1:e r E-,,-:s 2-i-i c ReF-ardinr-7 t)ie water-lines
-; �.. -,,!n to the Com.miss.ion. ' -n:!c(1E_1T1t?nce , I believed th--t. the matter was too iia- ortant for 3
r-
re—er-entt.d.ves ( one of ihom 'h, ad only held office for 2 weeks)
t-o the decic--4-on t`le-v rral�le at the tire they made it , under' the
circ-m t;7nce^ t*,,-t existed , t,itlhout the community being aware of
the
Unricr the F:at e (,._-.rcu-!3tnnce_s , I would rere-?t ny action independent
of the �oard �!--:ajority in both instances . r-.7y position in opposition
to the T-P for. _it,-- decisions on 'these matters was consistent with iny
baml:)Z-iir-n p27o-rsires at t'-.e time of election,- and I believe that the
cc-_Tnunit:' ex -ecte�� -re to ts1c:e action independent. of the majority
�y T
decisions .
s
T'" e 2
The c:l)rvev took T)laee dur. i.nrr the weep: or Jule ;16. The COnsulte:c nt
-lid not attend a r eeti n- of the Board , •r7hich might have helped. �
him e -tabl i,�'? tY.e rea-1 j t,y o^ the conflicts which he baCe^ his
a-csessr--ent of r::y actions and his recon-raendation to the voters on.
.He spent the total tine of arr.roximatel.,r an hour talking; with no .
Although re raker what may I.K) to serious alleF_?tionsa�-.ainst
r.-e , he r-.ade abr-olutely no effort to evalupte their validity or
de,Tree by any mention of the complaints and accusations to me .
This is highly irresr.on_sible if he REALLY intended to assess these
partieul?r problems-.
Pay conversation with hi. was on broad ra-n c:'ement and board rr obler,;s ,
not rersonality conflicts , nett�r Errieva.nces , ' personal eomplair_ts ,
etc , a.lthour-h I have accum.ulate'd ,just as many as the manager or
the board -majority.
His report mosti v i-nores the rroblems ? tried to_ brim to his
attentinn , ^na. '-is a•eneral indictment a-ai.nst me (without specific
dPtai1-. ) an:3 hi reco--mendation that tho voters recall me to
"re-tore st2bi 3 1_ty" to the Bo=rd are P reflection.-of the accusationsand o-oinionG of t};e, r^;?.n?Lrer rind the board r`'? torit�j which %%,ere the
reas one= for t'--e s urvev in the first T)I—ce .
Ironicall-.- , rr I in~tired in the interview, just exactly what i s
n "di recto,, ^ +i tulle F- -,lrve tnt had a little trouble
- fir, the consL�l-
.p
exr. laini!_s- _t because he discovered re .gad 3-eft "las::it: ton wit'^out
?;rinrl!n."' ?iCi7= t :e Cher=-tionn?.ire which t:;�: 'irector .attitude surVe'l"
r;n. it :,1.Io e 3 1.;--;er j.n tie r --il, ?nd --.t leant to of
(all t'O be c_ze C'__ed "?r'_'e.e or
n:;t r3 Lc--- , + the n t i
.. � o r_ O c:r- i.c n of a rubl-ic �_Lencv.
i
A.ftcr ^n?v or•Ief rersc.nr:�l contact , the consultant hp--s rendered a.
r� -vcholo=ical eva3L-�tj. on of m without revs s ;• r f e v-_t}iol2 r 2-, r'_in me l .Y I tame
some o tre r-:;naPrer' . ' n,^ a r Ci s
_ ac Rio_ - nc? ecOr-rr.er. ti.,.z.. u
i•he.. Or1t•l'' r' ViE1".^ pT7ci CIeCj S1t)nr If
he hr c� _-e i,"__:t has re '...1?cove re-i the ren?1 nrobler-s of the
- i
if-tri c oul corrn1icPte : is j b andnot
-fulfilled
t}-.e 5_ntcrt the m,7na-er and board
r
Thr., c,r nr=olt- -- t. cl i--ec- Or_1 tr t0 h?Ve b=C::.72"Otjr'i'. 2tl etlzir?eCri_'_, r.r,r
not u.- tall- con_ni.dered area!:-, of ex-rertice
to Or^ct-o r,L.`.l ir-}'_ T-•s,FC} evalu--nti Onf. . j nce 1'e
hrar7 i
r�o liit 1r -c,rSonaJ er:ntpct -.:,it,, me for obr'erv?_tion rurroses ,
?�'::_ ^-j.�"_CP. !C: rr?='.c no of-Psi-t to establir=.h t,-ie n^..tilre or v? li el i. t y
tr C: =CC?'..'?t:.^i^<. r Zf? az-•'-!i nc-t me , I ..rE ^u!re t !?t his ems` c:.'p:ilc^i_
C?1 c er c :�' i r ^C+L-all.r b-.r : ' orb . t�•'_e o-.7:Lnj_on`., ex-'-ressed to h .r"
b,r t'f'e. .,n;^fir r_c_ . the bo rd rajorlty.
pare 3
For -ny r>arty clai-inp to be a profeFf7ional "consultant" on
manes-c-ent rroblerrs to use his report to influence political
nroce:-srs within a public Pr-ency by a recor.•rriendation to recall
a rubli_cly elected official when that official is not accused of
nnythin- more r-ubstantisl than on,oosinr- the will of the r.n jority
if- not only 1_rrer-nonsible but abr:olutely astounding.
This ca.n leave no doubt that the consultant' s role was r-i_mnl,y to
validate the vie,�,,point of a manager who does not have unanimous
sinrort and his board majority, not to investi,-ate , ana._lyze or
evaluate the real problems of the management of the District.
Attached. is an in-de-nth commentary on the "charges" made a�-ainst
me in the consultant' s report.
Respectfully submitted ,
PAT SUTTON
TDPUD Director
F . C.. Box 1123
Truckee , Ca 05734
916-587-L-11L�6
PAT SUTTCI"S CG7 T"ENTS ON NRECA CCNSUITAIvT'S CHARGES
October, 1076 paFre 1
"THL LCiT':G-STA.:?7I:.G `._.TABII.ITY OF Ttir: 2jOARD HA:, t3E't:i': DISTURLED BY
THE ELECTION OF VR:. . SUTTON. "
In 1973 I actively campaig.ned against two incumbents and three
other candidates on the issues that existed at that time , and I
was elected by an overwhelming majority. This indicates that
the people wanted a drastic chanPe in the "long-sta_ndinp, stability"
of the District. The issues that existed 3 ,years apo are mostly
still unresolved , a.lthou_ -h I have consistently worked to accomplish
the promises I made to the voters at the time of election.
The "ton -standing 'stability" of the Board which I have disturbed
included the following problems which have been confirmed since
I 've served on the Boards
hiring ?nd sustaining poorly oualified n-anaaernent level employees ;
manar*ement ineptness and Board apathy which allowed manipulation
by developers and their afi:ents ;
contracts which were not in the best interests of the District
which resulted from the Board not reauirin adeauat.e advice
from qualified professionals ;
contracts which were not honored by the District in some cases
or by the other party, usually resulting in financial losses ,
utility syster- deficiencies , or legal liabilities ;
use of money from the sale of District capital assets to pay
operating expenses ;
poor bookkeepinrr and accounting practices not in comrliance with
Federal PoN^,er Commission requirements and which could not
indicate the District' s financial condition;
-poor fiscal r anpz-em:ent, lack of financial planning;
no attempt at buds-etary control;
pocr or non-existent record-keeping;
inert enrrineerin- practices , including the construction of a
?b-stetion with REA loan .funds which does not coordinate
�. witr the rest of the systern;
un^u�J.ified ins7nection of 7K riles of water lines in a major
;bc.ivis on reGul.tin- in fin^ncial liability;
atte7r-t to construct electric lines in major subdivision
-i.th. di.,trict r-intenence and operation r.e-sonnel resialtinF
in ,Jo-r _. r_ci-_I li_...-bi3ity for the District until resolved
t rnv:crh rener of i.-ter3 contract with develor_er in 1c=74;
vi _)laticn,-s or' ."t2te code requirerrents to bid for materials & work-,
ill.-d.vised -polio- -Ilov:ina- retroactive sick-leave r.•ayoffs to
tl-:ree former r•.•ana.:7e-rent er:nlovees at a cost of '13, 000 or more ;
f ra n,C i -1 2_ud its of doubtful validity:,'
sL:it <-^.---ainnt the District resultin,- from
i-.le.5-al cons-trt:ction of Donner. Lake Intake allowed by the
_.yrtrict;
ETC . ETC . !LTC.
P^.-e 6
In the case of the water-lines acceptance , the community responded
.,ith a referendum: on the Bo=rd r:a jorit,y' ^ action. The board majority
refused to honor it , and a law suit aa-ainst the District in behalf
of the referendum. petition sir-ners is pendinp, in Surr-ri.or Court.
Bonds gizaranteeiinxT the -Droner construction of the 7"; miles of water-
lines are still. being held by the court, and the suit challenges
the method. by which the boRrd majority took action on the accep_ tance
as . a violation of the State Public Utility Code .
In the case of the District' s permit to lease State land for the
Donner Lake Intake which the District al.loieed to be conntructed
the State Lands Commission has terminated the District' s application
without prejudice pending determination of water rights . In the
meantime the Attorney General' s suit filed aainst the District and
the developer in June 1973 is still pending.
The consultant' s statement implies some wrong;-doing or impropriety.
Obviously, -he did not examine the situation in depth. He relied
on information supplied by and accusations . made by the manager and
the board majority, and the formulation of his derogatory opinion is
also based on his own viewpoint that there is somethine inherently
wrong- with an elected official opposing a majority decision. I don' t
share his viewpoint. Most likely-, it is SUCCESSFUL opposition which
is the crime instead of opposition_ itself.
"R T;EP TH.Ar CGi:FIi HER OPFO ITIC N TO FOR1,:AL BOARD F.' i TI1:GS AND
ACCEFT THE PRINCIPLE OF FAJGRITY DECISIOUc" ':-,HE HAS TO
.CAT' 11E'R CPPU-,TTIC1•! TC; THE PUBLIC THROUGH Tile. .tiEDIA AID ANY Ct: R VEHICLE S71E•, .CAF 1'U` TER. "
1 am amazed that there is an intir•±ation of wron-7-dcin- in this
statement by the consultRnt. I believe that any elected official
M_t be open and honest in his or her positions in sumort of or
o-nnositicn to any -overnmental Policy or action, r�rticul :-.rly those
decisions that he or she ra_rticirates in. I do not bel.ieva- -:. :at
the only forum for the discussion of public iss►-es is "formal board
meetings , " �-.,hether one is a member of that Board or member of the
r_ublic who is affected by -U e decisions of'f' 'that. -Board.
Three r,embers of the TDFT_7D can control a decision, but they cannot ,
exercise control over an in ividua 1 director. ' :- mind, voice , values
or action outside the Board Room. There is no reason to believe
that a vublic utility district is so unique that the ria--hts and
resr.onsibilities of an elected FUD director ire different than that
of all other elected officials . The rit-ht and responsibility of any
elected official at ^ny Level of L-overnr,ent to express a minority
vies+point outside the hallowed halls of the state or national capitol
or. the "B•rr ? Room" is essential to our form of resnrer•:enta rive
_¢overnment, even here in Truckee .
r
..ter
page '7
I believe that all -public officials , anointed or elected , should
make themselves available to the media , . especi,lly ones at the
local level of. �rrdCrnment , which is where -there is the prreatest fear
of public discussion of issues , and the ,grea.te::t tendency to try
to manipulate or control the news.
I have made myself accessible to the media, and I have provided the
media with information that is public information. I have purchased
newsraper display ad space , at considerable expense , in order to
-.resent my views and positions to the community I represent. The
purchased space was in response to issues , problems , and allegations
that could not be allowed to go uncl?rified, unexplained, or unchal-
lenr'ed. The personal time and money that I invested in my efforts
to infnrm the community was spent primarily on two issuess 1) the
Tahoe-Donnor water-lines acceptance , and 2) the attempt to recall
me from office .
In spite o-r the indictment of mar actions implied by this statement
in the consultant' s re-no.rt , I have done nothins wrong or improper. .
The consultant apparently shares the view- of the manae•er and the
board ma ority that minority board met�.bers must submit to the pourer
and rule of the majority. I don' t accent that view.
"`F-E I_p.c AL"L: U:;',. ;� H• ARA �_=t' I-'T A1.`J 0'.. WR LBS'TRITCTIUrdI:'T TACTIC WITH
TI:i rO.SRD AND `:ITAFF TU TRY TO ACHIEVE N...•R ENDS. "
I zunrose th-Rt a subjective term like "ha_rassvent" is similar to
"beauty" ; in tre elres o-f the beholder. If. a ma_na.ger is not capable
o" =ulfi llin- .-e7ts for more sreeific information, exvlanations .
evil u=tion^ and recor-mend.ations , then he may feel "harassed" by
those re^uests . And Doard rrember> rho support him on the basis of
-ersonal friendchi- may sym-pathize .-pith his viewpoint.
As r^ rP.� -Onc?.1'l-E.' o '_^d mer-ber who re� uive^ sufficient and valid
in �-de'_^ to ;^R':_e en11htEnc^C`. CeC2` ions , i Cpl:nOt accept
responsibility for ths�:-e kind- of hand-urs tl�nt others . may have .
And their interpretations do not r.•ake le-•.itir-:ate requests "ha.rass-
r-ent" just bec i.r -e the,, say so.
.'1-'!-n the DoarC_ r ^.;ority a_-re.^rS intent u-t-,-on t decision based on
invnlifl and " G1 f-the ar'c" ori.nion:= , a ren UCSt for
iYlrrt -7-el evR lu�;ti on or l er.a.l --price is not obstructioia- .
i=- It i'. Wit-; attn -,-t to obtain rational consideration end.
based on f,-ct^ anc' Conrliti.onF: . Tho-.'c do, not
� ,-nt more infor. r�ation establiiL-hed or brou.r7ht out may vcha.r.-Te "obstruc
ti.oni-Im" but th-t ,roes not rcake it so.
I ..r?enir ucinl�7 Cyr other "obstructi-oniSt tactics" in L^.y
actions as an elected director during boa.rd meetings or a.t . any
other time .
r
pat-e
AFT--A.RL'11T1Y TU ACCEI'T TIFE f,TAN1)AP--D r-1:'A(;Tl(;V," AIM
G E Ai4lJ PUL-1ICe
ht TH PRIVAT
The conr-iiltant makes a. dcropratorY allef.r.ation, nualifi.ed with the
word ",vrnarently.*' He does not define his terms "standard practices•
and procedures ," or wive examples of their violation. As with
his othera3leFrRtiOns - he did not discuss ".standard rrnc-tices .and
rrocedures" or alles-ed violations. with me .
-.
The Triicl-,ee Donner Public Utility District is not a biiF jness, either
-orivate or public. It is a Fovernmental agency which exists to
provide services allowed by law. It has a great deal of autonomy
but is subject to arplicable state laws in the conduct of its
operation and compliance with some federal requirements in some
areas . The district constructs and o,..Fns and maintains facilities
to -provide its utility services , delivers those service: to its
customers , and charpes for them. it is a public entity governed by
the reorle in the district through their elected reDresentatives in
the -same manner as the school, hospital, airport, fire ,
ire , nnd sanitary
districts which also deliver snecialized services .
I do not know %,hat the consultant refers to as "standard practices
and procedures for 07--erptinr businesses , both private and rublic."
I do 1k:no--r, ho-wever, how a government should operates openly,
honeptlY. -es-nonsibly, and responsive to the needs of the reople .
-7overnment should be conductedt of
And I do know ho , services
sufficient quantity to surely the demand, of sufficient cuality to
meet th.e need-- , with dependability and reliability, at e-niiitable
rates for all users , and at the lowO:t -possible operating- expense .
A--jTj!-L)E EXTEFTc. TU REFUS-111. TO ACCEFT -AJCPTTY
ACCEPTED r-ARI1AT--,-'1'TARY FROCEDURM
!-7-ince the ennsultant uses the accusation of "refusal to accent
m - -e , I must presiin,e that this
..7- .jority decisions". 3 times on one page ,
is tie r- jor crime I ' m indicted for. A decision is not nacred just
-he c 1_jr 30,11'.0one who
e it is. by F3 majority. In private business ,
orToses a decision Tray subjus-rate his o-orosition, rec-iF-n or be
xce-nt in totalitarian ro-,,rernTrents , elected publInic
an
off_i6ipis Pre not subject to S majority .
oT,en society, an elected official who believes his function is to
P.ttend reetin!�- , vote , and acouiese to the ma.jorit% is not fulfilling
the tri.ist of his offiPe . --ReEraj:,dle.ss of the . implicRti011 of wronF-
doin- by the consultant , I will continue to OT-)poCe arbitrary or
ill-informed or ill-conceived decisions of P. bo--rd r. a.iority of
sufficient importance to warrant active onposition. Unlike the
consultant and the T-anas-er and the board majority, I %,.-ould consider
anyt`�:in? less P violation of the -oublic trust.
havina- used na_rllarrpntary rrocedure in mane asrectp of my life for
almor-t 30 ,years , both as a chairman and as a participant in formal
le,-illative meetinr=s , I am amazed at the consultant' -Fj accusation
th-t I refuse to accept parliamentary procedure!-- . lie did not attend
a meeting of the board to make his own observations , and I have
reason to doubt that he listened to the tapes of a meeting. He
maker= the ccusation without basis in fact.
If the consultant, had actually surveyed problems of board operation,
he would have found instances of a lack of understendinr and a
capricious attitude by the board majority resulting ins
proper, in-order motions not voted upon;
srecial and adjourned meetings without proper notice ;
poor agenda planning which results in too much business to
be conducted in a reasonable length of time , skipping-
around on the a -enda during the meeting, too many .impor-
tant action items brought up under "L,iscellaneous" in
the r;anar.er' s Report, -etc . ;
lack of administrative direction in the preparation of drafts
of the !.`inutes resulting in the omission of board actions ,
brief recaps of v rbal review of problems for clear
f uture , reference , brief descriptions of reports and docu-
rrents ,A"for the record" statements and reouests ; and
just plain errors , etc . ;
manipulation by the board majority of the contents of the
A'inutes record by arbitrary refusal to accent responsible
and valid corrections to the F'inutes as drafted ;
the refu� a_l. to call or subsequent cancellation of special
meetir_g-c when reniiested for urgent matter: on severa_I
occasions because the board majority and the manager were
opposed to consideration of the subject of the request;
adjournment o' meetings in order to avoid consideration and
discussion of scheduled aFrenda items they don' t want
discussed;
reT3ea-ted violations of the Brown Act (re_^ uirins- properly
noticed and open meetings of t'wblic ae-encies) by the
Board majority and sometires the r-ana,-er. F
recc-t examrle of the Board r-ajcritv' s httiturie toward the conduct
of bc�?r:l �eetinFs took --lace at the last rer ular m-eetin. on October 5.
Director Waters• was out of town on a trip; Chairman Anderson had
something more important than a board meeting thet nirrht, Director
•Christensen attended the meeting- for minutes , during which time
the first few agenda items , includinf- a rather long special report .
were covered . The next items were held-over from. the previous
r-eetiriv and were iterrs of business the board majority di does not wish
scussed. After a.n unsuccessful attemr.t to adjourn the meetinfr i
at 8: 15, Director Christensen walked out of the meeting , leaving
the bo:=rd withoi.tt a o_uorum to conduct the business of the rest of
the lonp- aF-enda of a regular board meeting.
i
name 10
^.'}:en thF!r-! , '.rinds of problems relatin- to board tneetiri?s exist, for
the consultant to accuse me of not asserting parliamentary proce-
dure is ridiculous .
"ONE P:U..-;T DEECRIE'_' ::RS . SUTTON A hAVli:G A PSYCr:uLGGICAL ':AK_-UP
`1'tiICH CAIdN(:T CGi•,V-;IDER OR ACCEPT A11Y OPINIGN OR VIEW ;1HICH IS IN
CC',iFIICT WITH HER (Y N . "
It is certainly remarkable that the consultant , who only claimed
a. background in en ineerinT and utility menager':ent , made his
psvcholoP-icpl evaluation in such absolute terms based on approxi-
mately an hour' s personal contact with me . B:rre likely he relied
on the opinions expressed by the mane--er and the board majority
for his unqualified assessment of my psychological make-up,
his accusation is professionally irresponsible and inaccurate .
Durin- the nroce^s of arriving at a conclusion, I seek facts ,
evaluations , opinions and vie;,t--s from all available sources . Even
after I have formulated my opinion, I can accept opinions and views
which differ frc.,n my own and respect them as lone as they are based
on valid conclusions derived from valid facts or -reflect a difference
in philosorrical evaluation.
I certain] " cannot consider or accept opinions and views which are
based on half-truths , incomplete or inaccurate figures , faulty.
reasonincr , unrealistic premises , twisted interpretations , etc .'
And neither should the consultant.
B .r the time I reach a. conclusion, I usually understand v:ell enouria
_o feel feirly confident that my vieN^,r:oint is reasonably valid and
one ;.,hich I can interpret to others .
The fact that the validity of m-ny of my positions is frequently
confirr^ed by later developments ano_ events may make others feel
psych oloA-ically uncomfortable , but this does not indicate an extreme
or f1a:•! in my ps,ycholoFical make-un.
page 11
SITFLTAHY t
The consultant' ^ report and recommendation on "Current Crises"
is based on a superficial review without investigation to substan-
tiate the interpretations , op`_,zions , and accusations he obtained
from the manap-er end his board majority.
�- The wrong-doing that the consultant implies in his indictments is
a reflection of his own viewpoint (which is shared by the manager
and the board rra.jority) that certain actions are intrinsicly
"bad" or "improver'" by their very nature .
r
Ferhars some of those actions might be unusual for a director of
a non-profit corporation called a "rural electric cooperative"
run by a board of directors elected at an annual meeting of its j
membership. But they are not improper actions for an elected
public official of a Povernmental ai-ency responsible to the voters .
i
These are the crir^es I 'm accused oft
distiirbinA the "stability" of a board that was not acting in
the best interests of the people or the district;
ha.vina, a confrontation with the manager;
refusing to submit to the will of the majority on .some issues ;
not Gonfinin!�- rri opposition to "formal board meetings ; "
involving- the people in the problems of the District ; j
ma.kin-- my opinions and positions known to the community;
usilir what they call "harassment" and "obstructionist tacticsj'
violatin-cr their brand of "standard practices and procedures
of businesses , both private and public ; "
havin,- a. ps,ycholopical make-up which prevents me from being
cooperative when I recognize the invalidity of some of
board majority and mana.ner' s views and opinions .
The real. crimes I have committed which the consultant could not
rick me for are:
l ) is do not believe that the *r:ana er is capable of dealing-
vfith the problems of the District, and
I -ill not sunrort the majority in their action:! to protect
and sustain him in ','is position.
The reorle of the ecrrrrunity �aTill have to decide which philosophy
of E-overnr-ent and v,'-�ich personal r.,, inciples best represent their
be<_-t interests in the arproach to problems and the conduct of
novernmental resno=ibility and power. 1 trust the people to make
th-t judger-ent .
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Pat Sutton
Truckee, California
September 17, 1976
Page 7.
District ' s record would indicate that the savings ratio of Well A
and B compared to the North Side Well is approximately 4 :1 in lieu
of the theoretical 9 : 1 described above. The discrepancy would
indicate that the limited records available may contain an error
or that the pumps in actual operation are more efficient than the
theoretical wire to water efficiencies.
" It is very important to note that water from Wells A and B at a
cost of 6 .90 yields a net income to the District of some 13 . 10 per
1000 gallons of water delivered to the golf course . Utilizing the
District rates that are now in effect, water pumped from the North
Side Well to the delivery system cost 26 .40 per 1000 gallons or a
net loss to the District of 8 .40 per 1000 gallons. It is readily
apparent therefore, that the District is loosing 21. 50 per 1000
gallons applied to the golf course from the North Side Well as
compared to the water being applied out of Wells A and B. A
direct community subsidy does in fact exist when the water applied
to the golf course ( or other large volume users ) is pumped from the
town system . This clearly illustrates the reasoning and
justifica-tion for the recommendation that we presented to the Board 18 months
to 2 years ago concerning differential rates throughout the zones.
If one extends the 21 .50 per 1000 gallons over the full yield of
the Well A and B aquifer, the net savings to the District is
j approximately $10, 750 per year. If the 10% discount is applied as
suggested in the lease agreement, the net annual savings to the
District is reduced to $9, 000 per, year. It would seem then, that
t there are four separate perspectives upon which to view the
{ advisability or the lack thereof, in the utilization of Wells A
and B.
CA. There is a 9 :1 theoretical efficiency advantage in
utilizing the upper wells.
B . There is a 4 :1 actual in fact advantage in utilizing
the upper wells.
C. In light of the current rate structure, there is a
21. 5 :1 advantage in using the upper wells.
4 D. In terms of net dollar savings to the district, there
is a $9 , 000 per year savings in utilizing the upper
wells.
Question 7A : "Do you regard the proposed special rate arrangement
as compensation for the lease, and what amount of money is involved?"
k Answer: The 10% reduction in the billing of the water supply
applied to the golf course was intended to be a minor inducement to
cover the capital cost involved in the construction of Wells A and
B and the PVC inter-tie to the system. The 10% is an arbitrary
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7 N
Pat Sutton
Truckee, California
September 17, 1976
Page 9 .
Question 71): "Has there been any indication from Dart that they
would consider charging the District a flat annual fee for the lease
of the wells instead of compensation based on 90. rate?"
Answer: Dart has indicated that they are willing to discuss the
90% rate and that the reliability considerations far exceed the
t almost immaterial discount as presently contained in the draft
lease agreement. The dollar per year that you suggest Pat , may
very well satisfy not only the legal requirement, but the "Value
received requirements of Dart".
i
On Page 4 of your letter you request a clear statement from me, as
! District Engineer, regarding the lease of these wells. A lease
agreement similar to the draft that I presented would seem to me to
be in the best interest to the Truckee Donner Public Utility District.
A lease agreement similar_ to the draft provides the District with
} the opportunity to make operational errors in the delivery and
distribution system without inconveniencing the customers involved.
A lease agreement similar to the one proposed carries with it a very
limited obligation on the part of the utility district with a sub-
stantial potential benefit to the District and the customers within
the Tahoe Donner sub-service area .
I can not comment on the proposed lease that is before you for action.
I requested copies of the lease and copies of Moskovitz ' s comments
on the draft that I prepared, however, I have not received or
reviewed either as of this writing.
I If I have created additional questions with these answers, I would
be pleased to attempt a response during the meeting of September 21.
I assume this item falls under Steve ' s report, item 1. Should that
location be an inappropriate place to discuss this matter, would
you please see that it is listed in the appropriate location.
Very truly yours,
COOK ASSOCIATES
Dan J. Cook
DJC/cap Civil Engineer
cc : Hoard of Directors
Interim Manager
Steve Grumer
Don Strand
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1
(2)
1. The agreement states that the road be adequately graded and
surfaced by the P.U.D. All that there is now is some loose
cinders. These are thrown down the hill by spinning wheels,
the road can not be plowed in the winter or the cinders
would be plowed away, and the road is no way adequate for
year-round use.
My agreement, and understanding, was that an all weather
surface would be applied, and maintained.
2. The agreemen also states that no feature of vegetation, rock,
etc. be desturbed. Since the cul-de-sac was filled in by
the debris from the tank, there is no turn-around and vehicles
are backing up the bank causing damage. I will be requesting
that the P.U.D. provide a turn-wround for their vehicles off
my property.
4- I would also like to discuss and clarify other provisions
such as items 3 and 5.
5. I would like to also reach an agreement on the future
compliance with this seven point agreement.
E
Y
p8
i
i \ 1
�"i 2dGRAP;I►Ptt .OF
i A�3GC-IC'•a—
RT UT r.nd JACQ'.U.-J'L LT IZE L . LST
1 .ZC U3IIL.3.ET, Sa Tr ,=lT.AS, RU3:w :p F
here tof
b ��ly E,ulit: Lc , as Grantee , certain eaifemAGnta and riG:s�ta of ��fay .tCeifs
-
a: r.er re ferred Lo . and
t.'�EEP�:.iS, se id Crantora r �� Grantea agree that the trnnnfer of
F c
sa:-.d �::�sere:c�ntrs and r L ::t of c" y r0 subject to ccrt�ia te�z a ��
Lc►►;�i =tong T<'l3 cur L1v pread u vn t-c- n ti..cs pairtic�s t srete: _
e v EtR3'.'3. ,�. ..f� 11"MT D. i t Lis+�:i.
NtJY.* 'F rw.F'.f.frC)1'•F i£ Ron-
IS lxLS`PU!11,.QI �.f�L.... t u _ ry 11=
anr' mot..¢. Lf..� : '_: t1TT:' , a3 r;rientors , �zrd T',-a.Ci�'
t3..:�.�.K PULi I.X C .
�.. ,lir1c , na GrtstQw: -Y
Cra�a�tcsrss g
1. That that certain e�c�®nt hc3 no Qi � i51n"� at po Q �t
to -r�c�tcl+e , and rocord2, Iirxy 2.)�:�a . 137 to doc-med
- .off � zial 13aaeorcis o tr--:ecs County, Cfollowing, toraischaLlQn cc""'o�.a� ac_:: �
•rrrrieb Ogee upon , a aO-:
to , Ar.-: thy. j
sppii-csbLe thereto , sand the
Cx�aafQr itic�ei�y m
That t 0e ecce"
+� shall he rid c
ustra ly grcdcAd ,
10 c3 ;
tht+i tag is t.:qun a surfaee sh i� L .;applLed ; such grnrling ..si +sr-fnci {
Veit? .x. pLov'..rae�� by the TRUC;ti ' - D£�� '.�.iL FtTi:I.IC I:iII.Z'TY DI:3z�Fib.
•r BG ZT-y_z TMILITY DIST� ZCT
� -
a cli=c;uaL�Iy -:rri►i~.ain the !.:_ess road . � }
t
• (:3? T}-asIt roster connection facilities) for a caa«v.zt.um of ;
fives ti:.sit ''ntial occup r'Icies x_;jIl be provieled nt t113 tcn atts of j
T%jr 'TG i.`T'LLI c Y 'i3ISTr IC'T- i TKi3 ,
Tf'17C1C�.E ?)Uzi ER PUBLIC UTILI� DISTRICA t7 Er_
-^ (4:) nlr.t t_YtL or oth-ar
}
tBkE: Che ^.�cessary ncti.va to ensure thrt no tre�- rock ,
r, rea.c- ti_. .� w=.li b re=novee , displ cad , or
of tfir r- by RCa: k'T D . L'aJ=I. v a n 4 the TPWG =xs
why :. r.-.t_t..:S3 `. RV Cee `- tiP' , t�3�3ii :, 3 L3Z
c LC-; 4•v tl a purcha3ers , wairs or
thf i Kilt: ER I�J�:L_C L^TILI"rY #
(�j Ic is 'urthzr agreazd that tts €�osass€3nt �:y D3
a Lc�Od
., tif;�P r_c1 the rfaxteral rubli.c b the current pro �-:rt7 owncr e
QI and 7 7 �G Lr�� �'!'3LIC �'���rjT D13T ICT W1.11 ��
owners . ' mac TIMC1 - ester,,ecYt entry
and
®able far i nstailinn posts s t tt.e y atc .auir_nr,io =or the inatallntic-� of as cFsnia control or g
(6) I+_ is zur=k.=ir and*ratoce brat st rst:ch t?•^a that t:
t •'t nu longer waintainG tip
L7TTZ.ITY D3.yT;,.ACT „� :hrn IE�
Tf•ufGriz _ r7t1�i;iER FtIULIG L �.3 b, . this i�ti:� _-i s
storoge L:a3T1YC Li Z U "aaz.1 a`.,tia::L a.}. �.•:"•� w`3 3'v� • i
. F
eececxal?t shall be cone lied and acri t�.cen f rosa record .
+.
(7.: ,tottYL�g herein coratAirted sha1L be da,=Ae d to limit .
1^t3St%4 CL , or sr.06i `_ V Llie ri at3� rtJtltlst3t3 � ol: pYlVt� 4SySi� ��gt2LE�d , �;iE't?�♦ i
�.�� i9i�.��. LJTIY.rI"fz I3�:�iE?=C:� vj th3 1--zws
or tzj-pored upatc TR; C;:ME - :t j
aL' rtyr State f >:< < f_surni8 now in Gff CC. orhcrelnaLttur c:nr+cto�s .
nor '-s`tall .t•t : 'r= :.1. : re.,srict , or mccdify nnp .of Its cz%iGt4119 or hire � r
efcer enact �'• i)r�' r-xs�_�� , F.c4�oluLfolY:s, or I-ul, or fie�tle+tiazts • t
t1+S Wi f�SS ::1r. AEUP, -:ant:ors tnd Granr_ee reapectL%FOLY have
L day O.A. _:.z_- ,
th1`fb.
_ elxeC231:EC: �}T�v 1sF•.r���=:Pr'r is -- _
By:
ood
Grantee .
October 5, 1976
Ir. Bob Christianson
Box 583
Truckee, Ca
Dear Mr. Christianson
I have requested that I be placed on the agenda of a meeting
of your board for the purposes of speaking to you about the
agreement that I have pertaining to an easment that was grant-
ed the Public. Utility District subject to certain conditions .
I have discussed this agreement with your manager, TIy. Tiorey,
and we were unable to reach any satisfactory solution. I am
writing this letter, prior to the meeting, to give you an oppor-
tunity to review the agreement that I refer to, and to view the
site in question. I would like to invite you tog0 to my property
and view the easement road, the tank site, and take note of the
conditions prior to the meeting. You may either go there individ-
ually, or Sou could go as a group; hor*ever is best for you. If
you Trish to go there as a group, I would be happy to meet you there.
Also, there are probably some files regarding this easement that
Mr. Morey would 'rant you to be faamiliar with.
:The property that is under discussion is lots 24+ 39 & LSO of
Ponerciva xalisades Unit 1#41. This. property is located on Pine
Cone Drive, and the easement is `the dirt road that leads to
the water tank.
r
During the meeting I will request that the P.U.D. provide a
hard surfaced road that is suitable for year-round use to
the building site. Hr. ?•'orey has contended that the present
road is "adequately surfaced" according to the agree:uemt . I
Lail1 be stating that the road has not been surfaced according; to
the a reement that I made at the time of the signing of the
agreement, as the promise that was made to me as that an "adeq-
ry
uabe year-round surface" would be provided. At the time of the
signing; of time agreement I L-ras concerned about the 11 dequate"
term and I gas, assured that Lae L:ere "all honorable gentlemen" and
that it would be surfaced to my satisfaction. I am requesting
that you look at this road prior to the meeting.
_I r:i11 also request that vehicles that belong to the P.U.D.
dis-continue backing up on the bank of my property to turn
around and confine their travel to the easement that was given.
During the construction of the tank the contractor filled up
the turn-around at the end of my road so there is no longer a
cul-de-sac to turn around. Vehicles are now bacTkIng up on the
bank of my property causing damage . This is also in violation
of our agreement. _-here are other parts of the agreement that
I will request be �•�,onoved.
r
In essence I trill state to you that I have an agreement that
was entered into in good faith between myself an:; the public
utility district, and that this agreement has not been honored.
I will also propose that In- view of the above statement, that
In the absense of a satisfactory honoring of the agreement,
the agreement will be in-valid along with the easement and the
P.U.D. will be denied use of the road.
I have been quite dis-appointed in the past at the attitude
of the P.U.D. managers when I was dealing with I3r. Paulus and
IIr. Cattan. I felt that in those days they were deliberately
trying to trick me, and had no intention of honoring their
committments. I an confident that this spirit is a thing
of. the past, and that with the new blood, a satisfactory and
honorable relationship can be established„
Sincerely yours;
Robert Butler
Box 6?3
Tahoe City, Ca 95730
583-5390
t
r
2000 FLORIDA AVENUE,N.W.WASHINGTON, D.C., 0200�09 TELEPHONE 202 265-7400
October 12, 1976 E F V E
OCT 1 5 1976
Mr. Daren Maurey
Interim Manager
Truckee-Donner PUD By _ ---
P. 0. Box 309
Truckee, California 95734
Dear Mr. Maurey:
We appreciate this opportunity to assure you, and the people of Truckee-
Donner, of our creditability and professional status as a management
consulting unit involved in rural electrification.
First, we have been .conducting management audits covering various phases
of rural electric operation for approximately 20 years. Secondly, our
men not only are highly trained and skilled in management practices but
each is thoroughly familiar with rural -electric systems and their operation.
Third, -any and all instruments, such as attitude survey forms, we use
has been tested thoroughly to assure both validity and reliability. Fourth,
in the very few instances where we have been called upon to testify as
expert witnesses in litigation, the' verdIcts have been favorable and we can,
furnish court citations if needed. Finally, the person, we were able to
assign to Truckee-Donner was among our most highly qualified and had served
not only on our staff but as a board member of a rural electric cooperative
as well,
I want to add my apology to that of Mr. Kabat's for the lateness of our
report. At the same time, Truckee-Donner must recognize that its request
was for immediate assistance and our scheduling had to be rearranged extensively
to meet it. This can, and did, result in our receiving return survey forms
over a longer period of time than we usually anticipate. We hope this gives
you the information you need.
Sincerely yours,
John Myhre, Manager
Training and Consulting
JM:sba
NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION
OCT
l ,-7c
• +f,UCt.�L is JI'vItiCF� F'•U.C)r
By
REPORT OF
A
MANAGEMENT AUDIT
FOR
{. TRUCKEE—DONNER PUD
TRUCKEE, CALIFORNIA
BY
ERVIN R. BAKER
SENIOR MANAGEMENT CONSULTANT
NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION
2000 FLORIDA AVENUE, N. W.
WASHINGTON, D. C. 20009
OCTOBER, 1976
I. BACKGROUND
The Truckee Donner Public Utility District has retained the National Rural I � � �=
1
Electric Cooperative Association to perform a management study for the PUD i
assist it in working out many presently nearly insolvable management
'.; •=ram
problems. While TD PUD is not a member of NRECA, NREGAts policy is to assist
i
small consumer owned .public utilities in solving �their management problems y _
and any other problems which fall within the providence of NRECA. NRECA is
a national association of electric cooperatives which encompasses about 95%
i
of all the REA borrowers in the United States. NRECA furnishes a wide variety f
of services to its members including legislative assistance, publications
Information, group insurance, and management services. It is under the latter f
!y
that NRECA has assigned a management consultant to TD PUD to perform the ?t -
management services necessary and to provide a brief report to assist the PUD
In solving its management problems.
,MD PUD is a public utility district incorporated under the laws of the
ate of California located in Truckee, California, and has operated for
50 years since its organization in 1927. The utility furnishes electric is
power and water services to approximately 3,000 consumers who are located _=�=
In the Truckee-Donner Public Utility District, a district which comprises �' "�' - `_.•
approximately 44 square miles, lying approximately east and west along an tc
area north of Lake Tahoe, commonly called the Truckee Meadows. The so called
"management" of TD PUD is comprised of a board of directors numbering five ?
members who are elected by the registered voters in the PUD, and a professional �' =
general manager who is retained by the board of directors to administer the i
I+ -
system.
i�
r
-Z- �t
II. THE MANAGEMENT AUDIT
r
The purpose of a management audit is to examine the operation of a business
from the standpoint of t r� �
generally accepted management practices and principles. i
A management audit has some similiarities to the financial audit which
publicly held businesses regularly conduct. The financial audit examines the i '-
,
'--financial operations and practices of the business in light of accepted
accountingkT{
principles. These principles have been developed to protect -•--
the interests of the owners of the business. The audit provides for an j L
objective outside examination of the financial practices and for the recom-
mendation of changes which should be made in accounting and operational , �*
practices to protect the financial interests of the owners.
i
The management audit has a much broader focus than the financial audit. II
It is an accepted fact that a business can be well run from the standpoint 4 _ ,z
of financial practices and can still be poorly managed from the -standpoint
' .
of overall objectives of the business. The management audit, then, attempts '•�� -`S°=��
to examine the management practices through which the work of the business m
Is conducted. The analysis of these practices is made in relation to the T-z
F
purpose or objective of the business. Recommendations are made, if needed, +
which can help improve the effectiveness of the operation of the business.
An increasing number of American businesses have found that having a manage-
ment audit of their operations is good business. : The people who are closely
tied to the business are rarely in a position to take the objective look
-�
at the operation of the business that is necessary to keep from developing .�
patterns of conformity to old practices. The use of an outside consultant
who can take an objective view about o erational p practices helps those people +.
Inside the organization examine their own activities more objectively.
The old adage of "not being able to see the forest for the trees" often has
great relevency for the people who are concerned with the day to day operation '
}
-3-
of a cooperative. Hence, it can be very good business to provide for a
periodic outside analysis of the operational practices and management activitiesIS :it .`�'
of the cooperative.
5-1
A management audit focuses quite heavily on the people aspects of the operation i, _
of the business and the internal and external relationships which exist to
'�-
mak the operation of the business successful. +f FR
,I
i
` --- _-=
�E
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i.
i" -
p,
a - -
- -- —mac ---
E
i -
-4-
III.
A. The Purpose(s) of the Board of Directors f,
i_ Survival. It is incumbent upon the members of the board to assure - '
the survival of the PUD, since it is inherent in their offering
themselves for election and being so elected by the voting public,
'.
r- that survival is one of the principal purposes of this position. 3a
2. Direction. The Board of Directors determines the direction in which ! `
the PUD should move, and provides the necessary resources and overall .' s F=
support to furnish this direction. .
3. Balance. The Board of Directors provides the balance which is
Inherent in the PUD. In this respect, it balances the interests of ! v'
j�
t
the owner vs. consumer relationship of the persons in the PUD, the
Z'
public responsibility that is inherent in the organization. the
f
responsibility to employees and so forth. i
i B. The purposes of having a •professional general manager
1. To serve as chief administrative officer to manage the day-to-day :.
operations of the district.
2. To serve as a chief ,of staff to the board of directors, and in this
capacity to coordinate the activities of outside consultants, to
advise and assist the board in the selection and use of consultants,
and other activities which are incumbent upon a chief of staff type
of operation.
7 -
-5-
IV. MANAGEMENT ANALYSIS
The management systems of the small consumer owned utilities lend themselves '
A-:
for analysis according to the functions of management. The functions of
management have been widely used for management analysis by Koontz and I
g 1
a O'Donnell some 25 years ago and various other authorities throughout the
succeeding years.
A. Board of Directors
In a consumer owned utility management system, the NRECA management
system has developed five functions for Boards of Directors. The functions =;
are those of: (1) planning, (2) legal function, (3) trustee function,
(4) requirements and resource functions, and (5) control functions.
The consultant will analyze the management system of Truckee Donner
public utility according to the above listed functions.
1. Planning
Planning is a function jointly shared by professional managers in the
management system. It is apparent that the board of TD PUD has never
really addressed itself to planning on a long range basis. The
Board has more or less responded to circumstances which have developed _-
E
and opportunities which have been presented. Planning is the most
valuable and the most important of all the functions. All of the
functions of management are dependent upon planning. The board should
analyze its planning function in view of a recent statement by Donald
Cook, recently retired chief executive officer of the American Electric =-
Power System, that anybody who is not planning 20 years- in advance
t
Is not in the utility business. While the consultant does not agree t
Lmu
t all boards have to be planning 20 years in advance, this Board
t plan more than a year or two in advance in order to exercise I
control over its purposes, its existence. The Board should remember f
E z
-6-
that planning is a joint venture with its professional management !
and should operate within this context.
2. Legal Function
g
The board is responsible for the legal aspects of the PUD. This _
t °-
Includes, but is not limited to, retaining the legal integrity of
the district, defending all lawsuits brought against the district,
Initiating lawsuits, and is responsible for all legal activities within - -
the context of this function. Generally, the legal function is not
considered to be a responsibility of the professional manager it= '
unless it is within his responsibility as chief of staff to the
board, or if he has some personal responsibility involved. _
3. Trustee Function
t The board is the trustee on behalf of the owners of the PUD which {
i
Include all registered voters within the PUD. Under this function `
the board serves as a fiduciary of the assets of the PUD for its
owners and any other types of trusteeships that arise. It is w
Incumbent upon the members of the board to perform this function on
behalf of the owners, that is, the registered voters of the PUD. =
4. Requirements and Resources Function
The board is responsible for providing the resources to conduct the j
business and objectives of the PUD. Generally, these take the form -- _
of revenues or borrowed funds in order to perform the various j
1 --
functions which require time, men, equipment, materials and so forth.
It is the board's responsibility to provide these resources and to ;
see that they are adequate for the objectives of the PUD.
S. Control Function !!
This is the review function of the actions and operations of the 1
PUD, the measurement of results obtained against objectives set
J
- =7
-7-
i
forth in the beginning, and the necessary allocation of resources
or realignment_ of activities which may be necessary in order to
achieve the objective which the board has set.
Following is an analysis of the performance of the TD PUD board against the
above definitions of the functions:
1. Planning
It is apparent that the board of TD PUD has never really addressed
Itself to planning on a long range basis. The board has more or less
responded to circumstances which have developed and opportunities
which have been presented.
2. Legal Function
It is the opinion of the consultant that the board is generally
performing the legal functions well. The board has retained an
outstanding legal counsel who is in a position to advise the board on
y legal responsibilities and the techniques which must be followed
In order for the legal function to be fulfilled. It is suggested
that the board request the legal counsel to make a legal audit of
the PUD and to point out to the board the areas in which corrective
action should be taken.
3. Trustee Function
It is doubtful that the board has fulfilled its trustee function
completely. One of the requirements of the trustee function is to
utilize the resources of the district in order to fulfill its obli-
gations. There is some reason to believe that these resources have
not been utilized in this fashion. However, it is not implied that
the board could be accused of dissipating the resources of the
district.
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4. Requirements and Resources Function
The board of TD PUD has failed to adequately invest the revenues
from its two utility operations to provide all the requirements of
the district. The district operated at a deficit in 1975 due to
failure by the board to apply a recapture of the fuel adjustment charge
made to Sierra Pacific at that time. This has since been corrected.
However, such actions as this should not recur, and the board should
make every effort to provide all the resources which the district
requires to reach its objectives.
5. Control Function
The board is getting into details of control which are not necessary
In this type of a utility management system. This is due in part to
a belief of some board members that separate individuals must
exercise the control functions. Generally, this is not considered
to be the best way to fulfill that function. However, it will be
Impossible for the board to improve its performance of the control
function as long as the planning function is not improved. The
consultant feels that it would be of value to the PUD to analyze
its operations in a few Key Performance Areas. The term, Key Per-
formance Areas, refers to a system of management analysis developed
In the early 1950's by Peter F. Drucker, one of the most prominent
management consultants of the century, the General Electric Company
and various management analysts. The Key Performance Areas as they
apply to a consumer owned utility system are as follows:
a. Financial Condition has at least four basic elements: (1) cash
flow (ability to meet financial obligations on a timely basis;
(2) the capital requirements and the sources of this capital;
(3) the development of equity and treatment of equity; and
(4) the return on liquid assets.
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TD PUD should develop a comprehensive financial plan, something
which has never been done in its history. There is no evidence
that the financial aspects of cash flow have been properly
addressed until very recently. There is no plan for raising
future capital. The levels of equity and the treatment of equity
have not been adequately analyzed. It is not certain whether
the district is obtaining maximum return on liquid assets which
should be integrated into the cash flow system.
b. Wholesale Power Supply has three elements: (1) availability;
(2) cost; and (3) quality as measured by addage and voltage
regulation. This PUD, since the beginning, has been at the mercy
of the power supplier of an investor owned utility. While this
was probably the best that could be achieved in the early days,
the district has passed up several opportunities to take advantage
of less expensive, more dependable power supply. It has only
been within the last year or so that there is any evidence that
the district has addressed itself to investigation of alternate
power suppliers. The present situation with the wholesale power
supplier places the PUD in a position of buying wholesale power
from the same utility with which it is competing at retail. In
the present- day electric utility industry there is no way to win
In this situation.
C. Utility Services. The district appears to be doing a respectable
job in this key performance area, that is, providing electric
and water services to its consumers on a reliable basis. Within
the last few years, costs have increased substantially but this
Is common in the utility business, particularly when the supply
of electricity and water is in the relative position of TD PUD.
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d. Utility Marketing (Load Management) . This is primarily directed
at the electric side of the PUD. Most electric systems are going
to types of load management to improve their annual load factor
and essentially save money on demand costs. It is imperative
that the district start investigating this type of marketing and
�. management activity. It could probably be adapted to water
operation as well, and this should be discussed with the water
system engineering group.
e. Employee Relations Training and Development. The district seems
to have a good relationship with its employees, and the employees
seem to receive adequate training in order to perform their jobs.
However, this is a continuing program and should be incumbent
upon the management of the district to see that training and
development of employees, with the resultant improvement in
relationships within the district be a continuing program.
f. Public-Community-Consumer Relations. The district does not have
a continuing program of Public--Community-Consumer relations. It is
•imperative that the district tell its story to the- public, the
community and its consumers.--- Almost everyone interviewed by the
consultant was of the opinion that one of the principal problems
__.__facing the district is the high cost of electric and water service.
This is partly due to lack of explanation and communications with
those concerned. It is also necessary that the district fulfill
Its obligations to the general public and to: the community in
order to enhance its image in this respect.
g. Internal Board- Operation and Development. It is within this
key performance area that the district has perhaps the most
difficult problem. The board has been divided on a 3-2 basis
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for some time with a switch in the 3-2 relationship occuring at
the last election. While the board has an understanding that it
will operate by Roberts Rules of Order, the present minority
of the board refuses to abide by the majority decision and takes
Its case to the public in various ways. It is interesting to
note that this did not occur with the previous minority. The
general consensus of all members of the board, and all other
persons interviewed, is that board meetings of the public utility
district are, in effect, a "shambles." Board meetings which
should last approximately 2 or 3 hours go for 5 to 8 hours.
(The board gets -Into detail with which it should never concern
Itself. There are charges, counter-charges and so forth.)
In effect, this is the overriding problem of the management of
i this public utility district. As the consultant sees it, the
problem will not be resolved until one or the other faction is
removed by recall action, such as those which are pending. It
Is incumbent upon the registered voters of this public utility
district to resolve this problem and to constitute a board which
will be responsive to its needs, and which will operate' the-district
In an efficient and responsive manner.
h. The Board-Manager Relationship. This is a very special and
sensitive relationship in the management of consumer owned
utilities. While the manager is not a voting member of the board,
he is chief of staff to the board, and he is the chief adminis-
trative officer of the utility. These are very narrowly drawn
relationships and must be understood by everyone concerned.
t In the case at TD PUD, these relationships, apparently, are not
understood, and the relationships are affecting the efficient
operation of the utility. The manager reports that he has had
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difficulty with individual members of the board since he was
hired. (The symptom of the breakdown in relationships is
apparent in the request by certain board members for detailed
Information of the manager on a personal basis.) The manager
should only furnish information to the board based upon board
action if it is outside his normal reporting routine. This key
performance area is so closely associated with the internal board
operation key performance area that they are impossible to
separate. The consultant feels that as long as the present
difference in philosophy and personal inter-relationships
exist nothing constructive can take place to further the interests
and objectives of the PUD. Only when the registered voters
of the district resolve these conflicts can any relief be seen.
However, through the development of and strict adherence to rules
of operation of the board meeting some relief can= be obtained
pending the recall election. The consultant recommends that the
board address itself to this question with the assistance of its
legal counsel and perhaps the help of an outside management
consultant to bring the situation under control. The board
meetings themselves and the relationship between the board and
the general manager is one that makes it impossible for effective
management and operation of the district.
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B. The functions of the general manager are somewhat different than the
functions of the board. They are generally considered to be planning,
organizing, directing, coordinating and controlling. Following is a
list and analysis of these functions as they apply to the general
manager at TD PUD.
1. Planning
The manager is providing a leadership role to the board in
planning of power supply and financial condition. It is incumbent
upon both the general manager and the board to work together and
develop a work plan and budget and other types and techniques of
planning in order to give the direction to the district required.
2. Organizing
The manager has been extremely limited in the organizing function
which includes the structure and staffing and administration for
matters which relate to employees of the District. While an
organization study was not_ a part of this management analysis, it is
obvious that the manager requires some assistance at this level.
It is recommended that the board authorize an organization study of
the district by a consultant when the board situation resolves itself
and the district can settle down to its more important activities.
3. Directing
This is a function of management where the chief administartive
officer, as such, issues directives and assigns work on a day to day
or week to week basis. The manager is doing this effectively even
in the absence of an operating superintendent, which theDistrict has
had in prior years.
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4. Coordinating
The Coordination function of the general manager is one in which he
puts together in a time frame the personnel and materials, equipment
and other elements which are required to accomplish a given task.
In the opinion of the employees, this seems to be going well, doubt-
less it could be improved with the addition of supervisory personnel.
S• Controlling
The manager shares this with the board and develops a control
system with reports to the board on the results of various activities
which the board has authorized and he has supervised within the
guidelines of board policy. Control may be also in to
Include internal procedures which -may not be a concern of the_
board in this type of an organization.
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V. RECOI-MENDATIONS OF THE CONSULTANT
1. It is obvious to the consultant that this public utility district can
improve its management system. In order to develop an effective manage-
went system it must develop the district's viewpoints (philosophy) as
they apply to the PUD's operation.
2. The district must develop a set of bylaws to guide it in its operation.
3. The district must develop its objectives .:In order that it will have a
clear idea of what it is trying to accomplish through its operation of
the PUD.
4. The utility must develop sets of policies which permit it to function
without having to decide on each individual aspect of the operation each
time it occurs. It is impossible for a board to function effectively
under these conditions.
5. The board must develop /its own rules and regulations concerning the way
It operates. This includes but is not limited to the development of its
agenda, the manner in which issues will be discussed, the manner in which
decisions will be reached, the manner in which minutes will be written,
follow-up procedures, etc. It is obvious that this may not be possible,
under the present wide differences of philosophy and objectives that
exist upon the board at the present time. However, the board should
start planning to implement these recommendations and it's apparent that
-the board needs some outside management assistance. The board should
also agree that it will let the general manager serve as its chief of
staff as concerns its outside consultants and to coordinate and implement
the use of these consultants on behalf of the board. Again, it is probably
Impossible for the board to accomplish this under the present system
of circumstances which exist. However, it is imperative that this type
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of management system be developed in order that the Truckee Donner Public
Utilities District may function effectively and efficiently in these
very difficult times.
It should be remembered that many small consumer owned utilities have
pretty much run themselves over the last 40-50 years. however, in the
economic environment which exists today, this is no longer possible.
Since the registered voters of the district are the owners and have the '
ultimate control and receive the services it is incumbent upon them to
see that the board is constituted to be responsive to their needs which
will .function efficiently, which will provide decisive action and in the
long run which will create an organization that will be permanent and give
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service to the district at the lowest possible cost in the ensuing years.
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6. The district should have a statistical analysis of its historical
operations made and presented to the board in such a way that it can
+ use it to review its history and to project its future. Th �da exists
for this to be done;it would require a few days of consulting time to
furnish this type of an analysis.
7. It is the consensus of most people that w e interviewed that one of the
objectives of the minority on the board is to effect a sellout of this
property to the Sierra Pacific Power Company. This may or may not be
an objective of these board members. However, the consultant feels that
It is within his province to make a recommendation to the voters of this
community concerning this matter. With a background of 25 years in the
utility business, I have never seen a situation where it was to the benefit
of the recipients of service of a consumer owned utility to sell it
out to a profit oriented company. Many times a profit oriented company is
In a position where it can take losses in one section of its service
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territory and make them up in another which is an option which is not
open to a small utility operation. This is a technique which has been
used many times for a profit oriented utility to buy out the facilities
of a consumer owned utility. While it is true that many consumer owned--
utilities today are so small in the scope of their operations that it is
difficult to operate economically in the opinion of the consultant this
Is not true in the case of Truckee Donner Public Utility District. This
Is a valuable property to all the people in the community and particularly
to the consumers. It would be far more beneficial in the long run for the
voters who have control of this utility to correct the problems that
exist in its management than to sell it out to an investor owned
utility who will have to add the cost into its rate base and consequently
pass that cost along to the consumers ultimately. There is no justification
for a public utility district which does not fulfill a function. However,
those functions can only be fulfilled with a background of competent
management and this can be developed in the situation that involves the
Truckee Donner Public Utility District.
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VI. SPECIAL SUMMARY OF CURRENT CRISES
Even though TD PUD has some management problems the present crises are more
of a political, personality and psychological nature and that is where the
short term solutions must be found.
The long-standing stability o£ the Board has been disturbed by the election of
Mrs. Sutton. During the time when she and her supporters were in the
majority the Board stability remained basically intact because the minority
accepted the decisions of the majority even though they did not agree with
them. It is significant that during this time when Mrs. Sutton was a member
of the majority on the Board that she had a confrontation with the General
Manager over a relatively minor administrative matter. She reportedly
advised him at that time that she would oppose everything that he advocated
In the future. She has certainly fulfilled that commitment.
When one of Mrs. Sutton's supporters was replaced on the Board and she became
a member of the Board minority she refused to accept the decisions of the
present majority. Rather than confine her opposition to formal Board meetings
and accept the principle of majority decisions she has resorted to carrying
her opposition to the public through the media and any other vehicle she
can muster. She has also used harrassment and other obstructionist tactics
with the Board and staff to try to achieve her ends. She, apparently,
refuses to accept the standard practices and procedures for operating
businesses, both private and public. This attitude extends to refusal to
accept majority decisions and accepted parlimentary procedures. One must
describe Mrs_ Sutton as having a psychological make-up which cannot consider
or accept any opinion or view which is in conflict with her own.
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The options available to the voters of the PUD are obvious:
A. They must replace Mrs. Sutton and her supporters with Board Members who
have common views with the board majority and can work with it for the
long term stability of the District.
Comments: This would bring the quickest solution to the present crisis
and with proper attention to management principles create long term
efficiency and stability to the District.
B. They must replace the majority with Board Members who support Mrs.
Sutton's views.
Comments: Both short and long term stability would be questionable
since many radical changes in management and personnel would be made.
C. They can replace the entire Board with Board Members who are responsive
to the requirements of the PUD.
Comments: This would not create short-term stability but with proper
management would create long-term stability. Experience is very
.�-- valuable to utility operations.
The consultant recommends Option A to the voters of Truckee-Donner PUD.
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
POST OFFICE BOX 309
TRUCKEE, CALIFORNIA 95734
TELEPHONE 587 3896
NOTICE OF SPECIAL MEETING
of the
BOARD OF DIRECTORS
OCTOBER 21 , 1976
7: 30 P.M.
AGENDA
7:00 P.M. EXECUTIVE SESSION - Review of District Counsel
1 . Roll Call
2. Discussion - Electric Rate Study by R.W. Beck and Associates
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
By
D VEN MOREY, Interi nager
j r - 10/20/76
OCTOBER 21 , 1976
The Special Meeting of the Board of Directors was called to order by
the Chairman at 7:35 P.M. in the Conference Room of the District Office.
ROLL CALL: Waters , present; Sutton, present; Craig, present; Christensen,
present; Anderson, present;
EMPLOYEES PRESENT: Morey and Reed.
OTHERS PRESENT: None.
DISCUSSION - ELECTRIC RATE STUDY BY R.W. BECK AND ASSOCIATES
The representative from R.W. Beck was not in attendance. It was
agreed that R.W. Beck would be contacted for the purpose of arranging
another meeting date.
Director Sutton asked that the record show her statement to Daven
Morey: " I just want you to know that I don' t blame you for what happened. "
Director Sutton moved that the meeting adjourn. Seconded by Director
Waters. No vote was recorded.
The Chairman adjourned the meeting at 7:45 P.M.
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
By r'
M. Rex Afid on, President of the Board
Jan 0. Reed, Secretary
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