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Home My WebLink AboutGeneral Funds } TRUCKEE-DONNER PUBI " �ILITY DISTRICT ' BALANCE rc. ASSETS 1975 MARGINS AND LIABILITIES 1975 Utility plant, at cost: Margins: Plant in service Operating margins Electric I 7to,4r) I Other equities � ? a Water RqR ,5�.,hq� Year to date margins Oq a General �1.,+ _'�G Les Is accumulated depreciation4 1oQ,35 Long-term debt: Net plant in service !'( II ,G`d REA bonds payable Construction in progress an.l T"7�(,,G,� Note payable to Sierra Pacific Power Company t0 5IQ Plant acquisition adjustments S,Sy R,08 Assessments Net Utility plant 6. Other ��5 Non-utility property R ,�I Restricted funds 185,5 t� Current Liabilities: Current assets: Accounts payable Cash I Consumer deposits '] ,C Notes Receivable `1�:L0'00 Accrued liabilities Accounts receivable ICA}'1'x.a� Accounts receivable - other 3 "1'J Total Current Liabilities 3141 Gam_. Materials and supplies 9a Li current assets �,I25,3� Customer advances for construction �3S.R(��,0�- Total Current Assets I5 00,Q I I P a na (ln a --.•----•— — TRUCKEE-DONNER PUBLIC UTILITY DISTRICT STATEMENT OF REVENUES AND EXPENSES -For the month of and months ended Iqlg CURRENT MONTH YEAR TO DATE ELECTRIC WATER TOTAL BUDGET ACTUAL BUDGET -ACTUAL ACTUAL BUDGET ACTUAL Net Revenues �4 q (JaR WT �i (�,g�s.aa) 111. ',, - �l 1 `ISM 14) Operating. Expenses yg05 855R� - R9tl � Maintenance Expenses. 15� —. IPCA G1 Customer Accounts Expenses S.Scb 1. $� - -lid- 9�nca -14 - General and Administrative Expenses ITOI II,'1� 10 P)A I $. Total Budgeted Expenses l0 I Ia�Fal,gq 10 � ►7 1a567,,`7 �� I Depreciation '— a r ' Interest Expense Io. R,Sq la Total Operating Margins lags 1,3T5 �aL,� 1 c77��q'1 loss �� 5 Other Income and Expenses Net Margins Net Revenues Total Budgeted Operating Expenses • lo"�yL` 1p�jj� qq4qac lol $4 Total Additions to Plant Accounts toi�4q 13 qq' Net Budget Operation I o Page-rwo TRUCKEE-DONNER PUBLIC UTILITY DISTRICT _ STATEMENT OF REVENUES AND EXPENSES For the month of and months ended q ua 4;, Zi,S, CURRENT MONTH YEAR TO DATE ELECTRIC WATER —TOTAL BUDGET ACTUAL BUDGET ACTUAL ACTUAL BUDGET ACTUAL Revenue Residential Sales 83 'lol,� � 4.3 �,0_ r R�` Commercial Sales Public Street Lfghti ng Sales to Public Authorities ..— —a� Fuel Charge Miscellaneous Rents Other Revenues 1�y - I�q 15,00 1r� �1., _ _►.a1 ]._ Fees for Changing and Connecting I S I1 "So Interdepartmental Sales Gross Revenues Allowances Donated Revenues Net Revenues 14q I✓i Pagc,7hr ,: I•, TRUCKEE-DONNER PUBI"^ '' ILITY DISTRICT ` STATEMENT OF REVE, AND EXPENSES For the month of and months ended .9 CURRENT MONTH YEAR TO DATE -ELECTRIC WATER TOTAL BUDGET ACTUAL BUDGET ACTUAL ACTUAL BUDGET ACTUAL Operating Expenses 5 �, -- — 8;�.J�. Purchased Power $ — — Station Expense I �i, Ra, 3+ Distribution Expense —.�-`�— Street Li.gk�ti ng Meter Expenses4_ Right of Way - Rents Misc. Distribution Expense 1�_ 8.q0 'i5 Q 'o Total Operating Expense 2200 Maintenance Expenses Supervision Structures Station Equipment r Distribution Equipment Line Transformers Street lighting and Hydrants Meters �+ Distribution Plant - - 5�4 Total Maintenance Expenses TRUCKEE-DONNER PUBL' )ILITY DISTRICT STATEMENT OF REUE,Le, AND EXPENSES For the month of and e; months ended c� CURRENT MONTH YEAR TO DATE ELECTRIC WATER TOTAL BUDGET ACTUAL BUDGET ACTUAL ACTUAL BUDGET ACTUAL Customer account Expenses Meter ReadingI—�•�-- Records and Collection Uncollectible Accounts S Sla Advertising Expense ��- Total Customer Accounts Expense _22C i d ' 34 goo- General and'Administrative Expense Administrative Salaries 1 7B k "' '� Office Supplies and Expenses Outside Services 3— --� -��" R-2 1 � Property Insurance --`� — 50 1 n:)— Injuries and Damages � Gr)— *Employee Pension and Benefits Misc. General Expense ►�� L� , a SGI� I,al 3� � Maintenance of General Plant — —�—= *Transportation Expense -- �-- Total General and ►�' Administrative Expenses I a0 * Overhead Accounts - charged to labor distribution monthly. TRUCKEE-DONNER PUBLIC UTILITY DISTRICT _ STATEMENT OF REVENUES AND EXPENSES For the month of and months ended (AQ(k4 CURRENT MONTH YEAR TO DATE ELECTRIC WATER TOTAL BUDGET ACTUAL BUDGET ACTUAL ACTUAL BUDGET ACTUAL Other Income and Expense Taxes r Contract Work Non-utility Operations Interest Income Depreciation 1G' Total Other Income and Expense �, '47-- oq MGDONOUGH, HOLLAND, SGHWABTZ & ALLEN A PROFESSIONAL CORPORATION MARTIN McDONOUGH ATTORNEYS FELIX S.WAH RHA FTIG ALFRED E. HOLLANp (1909-1969) MILTON L.SGH WA RTZ BRUCE F. ALLEN PAUL A.BERG October 20, 1975 SSS CAPITOL MALL,SUITE SSO V. BARLOW GOFF JOSEPH E.COOMES,JR. SACRAMENTO, CALIFORNIA 9S6i4 WILLIAM G. HOLLIMAN,JR. DAVID J. SPOTTISWOOD ,. _ I S115 4 4 4-3 0 0 0 ELMER R. MALAKOFF (t' 4[, 1'{�q� BRUCE McDONOUGH f� L3 SS ' SOUR FILE NUMBER DONALD C. POOLE 7 RICHARD E. BRANDT - O41/ 2 GARY F. LOV ERIDGE OCT.l �,) I� �G7; DAVID W. POST T ` 2 41 J RICHARD W.OSEN �C SUSAN K. EDLING ��V aaKVV /j� Mr. Paul Hobensack, Manager Truckee-Donner Public Utility District P_ O. Box 309 Truckee, California 95734 Dear Paul: When I met with Dick Campbell, Vice President and General Counsel for Sierra Pacific Power Company, lately, he said that the District had not paid its elec- tric bill for several months, that the amount was quite substantial, and that Sierra did not seem to know the reason for it. I told him that I would make inquiry; that I knew nothing about it. If it seems appropriate to you, I wish you would let Sierra know what the situation is, and send me the same. .-- With best regards, I am, Sincerely yours, Martin McDonough Attorney MMcD:pa CC." directors Joseph Q. Joynt, Esq. t October 24, 1975 Martin McDonough, Esq. } McDonough, Holland, Schwartz & Alien 555 Capitol Mall Suite 950 Sacramento, California 95814 Dear Martin: I am enclosing a copy of the amount,owing Sierra Pacific Power. Co. at the date of this letter. Dick Campbell has evepy right to be concerned about the amount we owe Sierra Pacific. However, if we had the difference of the price squeeze since I carve here in October, 1974, un- doubtedly the amount we owe Sierra Pacific could be smaller. The amount of monthly billings we are behind are no greater at this time than they were last year. The_Board was told no later than June that our rates needed to be adjusted. They were also informed that the adjusted rates should be effective by cold weather, but the rates have not been adjusted and we are doing everything we can to cut corners and still supply our customers with quality service. As manager I do appreciate the Sierra Pacific Power Co. position and I appreciate all of the understanding they have dis- played since I have been manager in Truckee. But to answer Dick Campbell I would say that our rates need to be adjusted and quite possibly the Sierra Pacific wholesale rate should be lower. Unless I have miscalculated, Sierra Pacific has a retail rate that is lower than our purchase wholesale rate. Sincerely, Paul Hobensack PH:jr cc: Board of Directors Joe Joynt Arthur Young Ken Merriman Z J I OUTSTANDING BILLS TO SIERRA PACIFIC: 10/22/75 * $35',671 .54 July power - billing date 8/21/75 84,485.12 August power - billing date 9/19/75 888,126.53 September power - billing date 10/23/75 $ 9,213.00 Donner Lake acquisition - note payment Billing date 8/1/75 * 812.00 TDPUD Distribution Crossing of SPPCo 60 KV Line No. 608 Billing date 9/15/75. Entire amount billed to TTSA on 10/6/75 $218,308.19 Total Due Sierra Pacific Power Co. * Amounts to be paid November 4, 1975 I'ovember IP75 MEI•i 0 TO OTHER TDPUD DIFECTCP.S FROR': Pat Sutton, Treasurer Res Sierra P?cific Power Bills BACKGROUNDS In October, Martin McDonou Ai met with Richard Campbell of Sierra Pacific regarding the problems of the District' s compliance vri.th the purchase agreement for the Donner Lake Electrical Syster., and the subject of our unpaid rower bills was brought up. W,artin sent a letter of inquiry to _W-r. Hbbensack on October 20, lb75. Is:r. Hobensack' s reply to ^Partin on October 24 contains the statements "The amount of rr=onthly bill inFs vile are behind are no Freater at this time than they r^- were last year." The District' s records do not substantiate this . AMOUNT OF DUE DATE APPROVED SFPC BILL ON BILL: FOR PAYMIENTs 53,778.74 Jan. 18. 1974 raid before Feb.2 , 1974 Board Mtg.# 74, 097.41 Feb. 20. 1974 raid before Mar. 5, 1974 B6a.Y 1\4tg.' 62 , 360.90 Mar. 22 , 1974 April 2 , 1974 62 , 326. 54 Apr. 18 , 1974 N.ay 7 . 1974 6L ,120.li1 T:'ay 20, 1974 August 6, 1974*# �06.48 June 21, 1974 paid before July 2 , 1974* . . 57, d' L7,960. 15 July 18 , 1974 August 6 , 197412"r- 56,969 .57 AuLJ. 19, 197U• September 16, 1974 57, 038. 39 Sert 20, "- 1971' October 15, 1974 59,410.79 Oct. 18 , 1.974 NHvember 19, 1974 62 ,L-)27 .22 Nov. 20, 1974 December, 17, 1074 64 ,877 .98 Dec . 20, 1974 Jannary 21, 1975 a104,944.98 Jan. 20, 1975 February 18 , 1975 a11a.839.59 Feb. 23, 1975 March 18 , 1975 11K,639. 57 I."ar. 20, 1975 April 15 , 1975- 4�-ll6,676. 08 Anr. 18, 1.975 June 13 , 1975 088,.L-1 May 21: , 1975 July 14 p_ artial payment $64 , 08=t .41 r August 5 paid remainder d-.40, 000. 00 8? , 222 .P? - June 20, -: 1975 A u-ust lq- , 1.975 79, 592 .$ . pg r• 1 July 18 , 1975 Se- t. 16 rtial -nay .ent .4 60, 000.00 October ? paid rer..ainder •19, 592 .81 7{, 671. 54 Aurr. 21, 1975 October 22 partial r_ymt . �40, 000. 00 remainder to be ar-Proved• Nov. 4 :1'.35,6?l. 54 81'- ,485. 12 Sept 19„ 1975 $ 88, 126. 53 Oct. 23 , 1975 :+?ith the excer_,ti on of the bill due in May 1974, between January 1974 and April 15, 1975, the District was paying its mother bills within a n onth of the due date on the billing, sometimes sooner although after the* due date . The District has been getting farther in arrears each month since April, 1975. These bills were paid without specific Board action and a^geared on Statement of General Fund after payment had been made . # Aft-r the r.revious I:"anae-er left July 15 , 1974, the SPPC bill due Yay 20, 197h, was discovered not to have been paid. COPIES TOs Faul Hobensack, :Lana.ger; Joseph Joynt , Counsel ; Martin YcLonough ; Arthur Youn. & Corr:rany �"' Z L ARTHUR YOUNG COMPANY SSS CAPITOL MALL SACRAMENTC+, CALIFORNIA 95814 y October 6, 1975 Board of Directors Truckee-Donner Public Utility District Gentlemen We have examined the financial statements of the Truck-ee-Donner Public Utility District at December 31, 1974 and for the year then ended and have issv-ed our report thereon dated May 9, 1975. As a part of our examination, we reviewed and tested the District's system of internal accounting controls to the extent we considered necessary in order to evaluate the system as required by generally accepted auditing standards . Under these standards , the purpose of such evaluation is to establish a basis for reliance on the syste:a in determining the nature, timing and extent of other auditing procedures that are necessary for expressing an opinion on the fir.aricial statements . The objective of internal accounting controls is to provide reasonable, but not absolute, assurance as to the safeguarding of assets against loss from unauthorized use or disposition and as to the reliability of financial records for preparing financial state- ments and maintaining accountability for assets . The concept of -reasonable assurance recognizes that the cost of a system of internal_ accounting control should not exceed the benefits derived, and also recognizes that the evaluation of these factors necessarily requires estimates and judgments by management. z3 ' ARTHUR YOUNG $ COMPANY Board of Directors -?.- October 6, 1975 There are inherent limitations that should be recognized in considering the potential effectiveness of any system of internal accounting controls. In the performance of most control procedures, errors can result from misunderstanding of instructions, mistakes of judgment, carelessness, or other personal factors. Control procedures whose effectiveness depends upon segregation of duties can be circumvented by collusion. Similarly, control procedures can be circumvented intentionally by -management with respect either to the execution and recording of transactions or with respect to the estimates and judgments required in the preparation of finan- cial statements . Further, projection of any evaluation of internal accounting controls to future periods is subject to the risk that the procedures may become inadequate because of changes in condi- tions , aiid that the degree of compliance with the procedures may deteriorate. Our study and evaluation of the District's system of internal accounting controls for the year ended December 31, 1974, which were made for the purpose set forth in the first paragraph above, were not designed for the purpose of expressing an opinion on internal r accounting control and would not necessarily have disclosed all weaknesses in the system- Such study and evaluation disclosed the conditions described in the following report that we believe to be material weaknesses. These weaknesses were not of such a nature as to affect our ability to express an opinion on the District ' s financial statements, but they did require us to ,perform additional auditing procedures or to extend certain procedures . Very truly yours, 1 2- Y SUMMARY OF INTERNAL CONTROL WEAKNESSES Property ledger out of balance The property ledger contains the detail of each plant account which, in the aggregate, equals the plant in service accounts on the District's balance sheet. At December 31, 1974, the property led- ger was out of balance with the general ledger-. There had been no postings to the property ledger during the year, and no attempt had been made to agree this ledger to the general ledger. During the audit, the necessary reconciliation of the property ledger to the general ledger was performed and appropriate adjust- ments were made to bring the ledgers into balance. These ledgers should be updated on a monthly basis to maintain proper control over the District 's plant and equipment. Construction in process work orders Similar to the account described above, the summary of all active construction work orders should equal the construction in progress account in the general ledger. At December 31, 1974, the total of construction work orders did not equal the construc- tion in progress account in the general ledger. We also noted that work orders were not closed to the related plant in service account when the construction had been completed and the asset was, placed in service. Effective control over construction cost may be lost when work orders are not balanced monthly, and failure to close work ^ orders at the time of completion may cause an inaccurate calcu- lation of depreciation. As a result of the audit, at December 31, 1974 the construc- tion work orders were -balanced and completed work orders were closed. We recommend such procedures be performed by the District personnel on a monthly basis. Compliance with Sierra Pacific loan agreement The District entered into an agreement with Sierra Pacific Power Company in 1967 for the purchase of the Donner Lake Electric System. Included in that agreement are the following provisions which have not been complied with by the District: 1. Revenues received from the Donner Lake System may not be utilized for any purpose other than main- tenance and operation of the Donner Lake System and payments on the principal .and interest of the loan. zs 2. The District shall establish a separate fund for the receipt and disbursement of funds related to the Donner Lake System. 3. The District shall make prepayments on the loan balance to the extent that the net revenues exceeds the expenses and principal and interest costs. It appears from the District's financial statements for years prior to 1974, with which we were not associated, that if these pro- visions had been complied with, the loan would have been liqui-dated. To resolve the default on the loan, we recommend that either the District pay off the loan or, if this is not financially possible, the District re-negotiate the agreement with Sierra Pacific Power Company. Restricted funds control Pursuant to various District -resolutions and contracts with developers, certain deposits have been collected and held by the Distri.ct in interest bearing trust accounts. In several instances, funds have been withdrawn from these deposit accounts and utilized for other than the purpose for which they were collected. As an ongoing policy, the District should not release funds from restricted deposit accounts until compliance to the underlying contractual arrangements has been assured. Unrecorded assets During our review of documents supporting the receipt of funds held in restricted deposit, we discovered notes payable to the District had not been recorded and, collection of these notes was not being pursued. Appropriate adjustments were posted to the books and records to include these assets and, the District is now in the process of collecting these amounts. The complete effects of accounting transactions should be _recog- nized when a contract is entered. If questions arise concerning such transaction, your independent accountant should be consulted. Contract and correspondence file During the audit considerable problems were encountered in obtaining supporting documentation and information for accounting transactions due to the poor condition of the files at the District. It is our opinion the files of the District should be reorganized so that all documents are filed by contractor or primary party and by contractual event. All pertinent documents should be filed chronologically and, such files should regularly be reviewed to determine that contractual obligations are being complied with. 2 (> +, I • a i Inadequate reporting The Board of Directors has been entrusted with the duty to administer and determine the policy of the District. The financial information generated for the Board does not give them the proper information to adequately fulfill these duties . We believe that adequate monthly reporting should include: Balance sheet Income statement Comparison of budget to actual Aged listing of accounts receivable Aged listing of accounts payable Statement of cash position Delinquent payments on sewer assessments During the year, the District paid past and current payments due on sewer assessments plus substantial late payment penalties. The District should -prioritize its payments so that such penalties are not allowed to accrue. r . L' ARTHUR YOUNG COMPANY DG,T2 8 L' 7975 crud;L� SSS CAPITOL MALL BY ;♦ t� SAC RAM ENTO�'rE.�L'1F ORNIA SSB14 October 24, 1975 Director Pat Sutton / Truckee-Donner Public Utility District P_O. Box 309 Truckee, California 95734 Dear Pat: By reference to our files and subsequent information provided by Joseph Q. Joynt in his letter dated October 14, 1975, I believe the footnote reference regarding the issuance of a purchase order in 1974 is incorrect. As you stated, the purchase order was issued in 1973. I apologize for any problems related to this error, but our statement was based on letters from Mr. Joynt dated January 14, 1975 and March 11, 1975 (attached) concerning possible' legal liabilities. The purpose of Mr. Joynt•s letters and our note in the financial state- ments was to disclose the possible commitment of District funds to the reader of the financial statements. We believe the note accom- plishes this objective, and we do not propose to amend the financial statements. very truly yours, ARTHUR YOUNG & COMPANY By batthew C. Gomez cc: Board of Directors Mr. Joseph Q. Joynt Mr. Paul Hobensack LAW OFFICES OF JOSEp" O_ .jOYNT JOSEPH O.JOYNT • POST OFFICE HOx b71 ROBERT M.HOLLEY AUGUSTUS T.SCHLATER TAHOE CITY, CALIFORNIA SS 5730 T—CPHONE S83-3468 AREA CODE 91E January 14 , 1975 Arthur Young & Company 555 Capitol Mall Sacramento, California 95814 Re: Financial audit as of December 31 ,- 1974 . Gentlemen: As general counsel for the districts_ _know of_no litigation irivo-Ivirig" fie district, either as�c3ty-pl .n- t'iff�or' d�feridaritteii3ari �as'o �bcenbex.31, 1974. Other matters , however, as requested in your j recent inquiry: lj A property damage claim filed in Nevada County 90, 1�, Superior Court in which Butler is claimant. This matter . oras referred to the insurance carrier and the district is now being represented by. the lawfirm of 11offman, .Mayhew & Gallawa, 1006 4th Street, 7th Floor, Sacramento, California 95814 , telephone (916) 444-9364_ For further Information, please contact said counsel. 2) At some time during the. year 1974 , the la:•7firm of McDonough, Holland, Schwartz & Allen, 555 Capitol Mall , Suite 950 , Sacramento, California 95814 , telephone C916) 444-3900 represented the district in a Nevada County Superior Court action in which Beavers was claimant. 1 believe the litigation is complete, .but for further information please contact Mr_ Martin McDonough at the address shown_ -1� 3) In November 1974 _Jack F_. _Guzm_an_ and Lynn C. Guzman, as claimants , fired a claim ag?inst_ the district f'V? f A- for~property iaam'age-s totalling -$17, 000. 00_ The claim was rejected- by "the district in December 1974 and has been referred to the . liability insurance carrier. _ No. .laztisuit has been filed. LAW OFFICES OF - J(DSEPH Q. .JOYNT - Arthur Young & Company January 14 , 1975 Page Two 4) -In the month of November 1974 Glen E. Atkinson as claimant filed a claim and authority for permission to file a late claim for alleged personal injuries. In the month of December 1974 the district denied the claim an�i denied"the rsquesE "for permission to file -late- claiift; .arid''the'file. was---tende-red_td'-the Cyt 1 di.strict'.s_.I ability.._i.nsurance carrier. . _—T e_'amo.unt �C,hf��i✓ -claimed was the - s um-_of- _ $5.Q,_-33 35. S_know of_no litigation, not .be,ing_._contested by__tIze_ district, d_.=..j:now-_of _no._litigat ora-matters in_.which .thA_district has admitted_.l,i. }b3lkty. I_ knoxr _of .no 1nvestigation__.of._.the district--by any governmental regulatoryagency. except that Nevada County _Grand 3u_i ^was, and nay. still _be, inv_es- tigating or checking _uiith the. distri.c_ __cq_ncerr�ing. Donner I:ake-_Water-and perhaps-•.any--.other,.Inatte-rs. I have seen no grand jury report. I know- of no failure_by.th.e_distrLc-t- t_o__wu�ke Although the claim was -_not_.file:d___as_of AD.ecemb-r 31 1974 the -.issue or the- matters contained therein arose in the year 1974. _There_nQoL^j �wi leSi��ith_._.the_ - district_ a_claim by West' house. Electric .,Supp-l-y. Company for alleged breach of contract, alleging damages in the sum f o $19 ,955 _ 00. The distriot is investigating _this partcular—claiiri and will take action thereon at some meeting perhaps in January or February 1975. The district is being represented by the undersigned on tht_- claim and j all appropriate action is being taken_ The bill for attorneys fees and services from the district to myself through. -the- middle_.of- Septem}?.er, 19.7:4a._.has.,.been__paid. The_._aggregai e amount due__-thereafter for the year 1974 'would^not- exceedV_$2 , 000. 00. Tf. 1. can be of any further assistance, please let me know. Thank you_ r _ Sincerely yours , OSEPA Q_ JOYNT JQJ/bp cc : Paul Hobensack, Manager • LAW OFFICES OF JOS EPH O. JDYNT JOSEPH O-JOYNT ROBERT M. HOLLEY POST OFFICE BOX 071 - AUGUSTUS T. SCHLATER T^HOE CITY,CALIFORNIA V5730 TELEPHONE SR3-3466 AREA CODE 906 March 11, 1975 Arthur Young & Company 555 Capitol Mall Sacramento, California 95814 Re: Truckee-Donner P_U_D. Gentlemen In response to the request by Mr. Hobensack dated . . March 4 , 1975 , I know of no suits , claims or actions . against the District, other than those already reported to you. With respect to the Westinghouse_ claim of some 19 ,000. 00 , it is still alive and with- us. The claim is noticoyered by. any insurance of which we are aware. On the whole, I am not too concerned with the claim. It is for five transformers . There is evidence in the file that j Westinghouse may have sold -one transformer, reducing the . claim by some $4 ,000.00. I have _already advised- thee District that.-from the legal standpoint the law favors .-- __the. District..-- - And I still-.believe. that t_ o be correct: But you should unaerstand that the claim at this stage is merely that, a claim made, and nothing more at this time. No suit has been filed. We do not know if WESCO will pursue the claim. Keep in m1nd,. also, the thrust of the complaint is- for refusal by the District to accept delivery. If worse came to worse, the District could accept delivery and would then owe the $19 ,000 . 00 odd dollars. In other words, the District would `.'h.Ave the transformers in stock inventory. And I am told the - transformers could be used- So, while the amount of .the claiiit`;is'"sizeable, and if the District were -held to pay, the District would have the goods in stock_ Sincerely yours , l �" /J05EPH Q. JOINT JQJ/bp y cc: Mr. IIobens ack STATE OF CALIFORNIA—STATE LANDS COMMISSION EDMUND G. BROWN JR.,Gov .nor STATE LANDS DIVISION 1807 13TH STREET SACRAMENTO, CALIFORNIA 95814 (916)445-1012 0 C T 2 8 1975 October 24, 1975 :TRUC.--,GE BY i File Ref.: W 20389 Y, �s I Mr. Paul Hobensack, Manager �J r Truckee-Donner Public Utility District P. 0. Box 309 jL✓} �� Truckee, CA 95734 _ f Dear Mr. Hobensack: SUBJECT: Preparation of Final Environmental Impact Report; Application to Lease State Land and Divert Water From Donner Lake, SCH #74082024 Thanks for your letter of October 14, 1975. Pursuant to your request, we will extend your application for an additional 180 days as of this date and hold in abeyance any further processing of the final environmental report. By copy of this letter, we are also advising the State Water Resources Control Board of this determin- ation. We assume you have also simultaneously advised the Water Resources Control Board of your wishes and course of action. f Any information that Mr. Dan Cook, The District's engineer, .r provides to keep me advised of pertinent developments will be s appreciated. f i Si cerely, / JAMES F. TROUT, Manager an Ld Operations j cc: State Water Resources Cont 1 Board i Water Rights Division 2125 - 19th Street Sacramento, CA 95814 Attn: Richard L. Rosenberger, Chief (w/copy of 10-14-75 ltr.) cc: Charles S. Doskow Dart Resorts P. 0. Box 3157 Terminal Annex Los Angeles, CA 90051 �- ,gZ i COOK _ASSOCIATES ENGINEERING CONSULTANTS 2060 PARK AVENUE N1 ! OROVILLE, CALIFORNIA 93963 PHONE (916) 333-6437 OCT 2 8 1975 FRE{C4`ie0= October 24, 1975 sy - James Trout , Manager of Land Operation State Lands Commission 1607 13th Street Sacramento, California 95814 Re : Donner Lake Intake 8. Lease, Sch #74082024 Dear Mr. Trout : By now you have probably received the Truckee Donner Public Utility District ' s official request for a 180 day extension prior to the State concluding the environmental impact report on the lease of Donner Lake lands and the related implications. Please let this letter take the form of an informational status report of the activities following our meeting in Sacramento, March 6, 1974. The Truckee Donner Public Utility District, Dart Resorts and the Truckee Tahoe Airport District have been discussing the acquisition of the airport well and the integration of the well into the community water system. The negotiations have been slow at times and probably would have failed if Director Sutton had not been persistant after I, for one, had given up on the possibility. The Airport District and the Utility District have each adopted a Resolution of Acceptance in principal to the Agreement. The final details of the Agreement are being worked out at this time. Dart has contributed cash money to .increase the pipe size for those portions of the would be district inter-tie that are being constructed. Some 3000 plus feet of the ' inter-tie are now complete. a:.C:C K ELF U. .JOE F CnC,K M F. James Trout Sacramento , California October 24, 1975 Page 2. The second draft of the Dart-District Agreement assuring ground water sources is being considered by Dart Industries Board of Directors this week. The draft Agreement calls for designs to be completed this winter and spring and the system completed in the 1976 construction season. Progress is being made and the District would appreciate your favorable consideration of the requested 160 day extension. Very truly yours , COOK ASSOCIATES Dan J. Cook Civil Engineer DJC/cap cc : Paul Hobensack Board of Directors Dart Resorts Joe Joynt TRUCKEE-DONNER PUBLIC UTILITY DISTRICT FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 1974 with REPORT OF CERTIFIED PUBLIC ACCOUNTANTS r CONTENTS Report of certified public accountants Financial statements Balance sheet Statement of revenues and expenses Statement of operating margins and other equities Statement of changes in financial position Supplementary information Statement of departmental operations a' r• � N � 0 G � 'd to w � w �+ H H H D 0 x 0 0' r p H G m m 0 Gr I I tT 0 0 1 p H. 0 0 0 A+ a m G G m r z o m e 0 c+ I o 0• m �t o 0 —I U7 0 G t H. Oq �i N m 1 0 K P PV to _ e+ 0 e+ c+ m r H a c+ W c+ C+ m m m 0 O m c+ 1-i W 0 0 G m N 0• 0• N m m m P [ 4 0 0 � H. 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H. to 0 r• w m 0 r• N r- m 0 r• 0 0 c+ m m c+ 0 H 0 0 c+ O D 0 m a 0 0 H. 0 m H. 0 E n .1 0 d m A K 0 0 H. G c+ d z -1 p� H. 0 0' m K P D 0 m a a aq a '� 3 a r d D UI A r ARTHUR YOUNG & COMPANY The Board of Directors Truckee-Donner Public Utility District Our examination has been made primarily for the purpose of expressing an opinion on the financial statements , taken as a whole. The accompanying supplementary information is presented �-1 for analysis purposes and is not necessary for a fair presenta- tion of the financial information referred to in the second preceeding paragraph. It has been subjected to the tests and other auditing procedures applied in the examination of the financial statements mentioned above and, in our opinion, is fairly stated in all respects material to the financial state- ments taken as a whole. r The financial statements for the prior year were examined by other independent public accountants . QA:�X� May 9, 1975 AND LIABILITIES 1974 1973 - Utility plant , at cost : Plant in service (Note 4) : $ 849 ,429 $ 883 , 845 Electric 593 , 096 579, 053 Water - 136,515 f 1,442 ,525 General 1, 599,413 Less accumulated depreciation Net plant in service 391,574 410,574 Construction in progress cific Plant acquisition adjustments 115,492 128,076 Net utility plant 20,274 17,229 1,980 2,860 '- Non-utility property 529 ,319 558,739 Restricted funds (Note 2) Current assets : 221,709 101,711 Cash 6,870 6 ,210 Notes receivable 19,944 22 , 750 �- Accounts receivable - consume ities 248,523 130,671 ance for doubtful accounts ($1,928 in 1973) Accounts receivable - other, ruction (Note 5) ance for doubtful accounts ($462 in 1973) of con- ) 148,030 1, 180,906 Materials and supplies h Other current assets Total current assets $2,368,398 $3 ,469,729 TRUCKEE-DONNER PUBLIC UTILITY DISTRICT STATEMENT OF REVENUES AND EXPENSES Years Ended December 31 , 1974 and 1973 1974 1973 Operating revenues: Electric $1 ,034,448 $945, 034 Water 101, 276 87, 244 1 , 135, 724 1, 032, 278 Operating expenses : Power purchased 763, 469 505, 060 Transmission expense 25, 624 22 , 974 Distribution expense 70, 105 65, 914 Consumer accounts expense 64, 145 46 , 218 Administrative and general expenses 112, 716 71 , 119 Depreciation expense 111, 507 97, 035 Miscellaneous operating expense 3, 292 77620 Interest on long-term debt 19, 282 20, 322 1, 170, 140 836, 262 Operating margins (loss) (34,416) 196 , 016 Nonoperating revenue : Net merchandise and jobwork 9,689 10, 092 Interest income 4, 163 15, 924 Other income 191 999 Nonoperating margins 14, 043 27, 015 Net margins ( loss) $ (20 , 373) $ 223, 031 See accompanying notes : TRUCKEE-DONNER PUBLIC UTILITY DISTRICT STATEMENT OF OPERATING MARGINS AND OTHER EQUITIES Years Ended December 31 , 1974 and 1973 Other equities Non- Operating operating Capital margins margins gains Total Balances at December 31, 1972 $687, 829 $ 67, 117 $470, 123 $537, 240 Net margins for the year 196, 016 27, 015 27, 015 Gain on sale of land and equipment 14, 798 14, 798 Balances at December 31, 1973 883, 845 94, 132 484, 921 579, 053 Net margins (loss) for the year (34,416) 14,043 14, 043 Balances at December 31, 1974 $849, 429 $108, 175 $484,921 $593, 096 ..r See accompanying notes. r i1 TRUCKEE-DONNER PUBLIC UTILITY DISTRICT STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended December 31 , 1974 and 1973 Funds were provided by: Operations : 1974 1973 Net margins (loss) $ (20, 373) $ 223, 031 Depreciation expense not requiring an outlay of funds 111 , 507 102, 930 Net funds provided by operations 91 , 134 325, 961 Restricted funds transferred to general fund (Note 2) 196, 121 112,619 Cash and utility plant contributed to the district (Note 4) 24,069 169, 669 Increase in long-term debt 6, 058 - Materials salvaged in excess of removal cost 8, 044 (2, 676) Sale of land and equipment - 15, 002 325, 426 620, 575 Funds were utilized for : Additions to utility plant including amounts financed by contributions in aid of construction 269, 906 390, 291 Payments on long-term debt 35, 477 33, 287 Additions to restricted funds - 118, 096 Refund of customer advances for construction 51,660 - r 357, 043 541,674 Increase (decrease) in working capital $ (31, 617) $ 78,901 See accompanying notes. TRUCKEE DONNER PUBLIC UTILITY DISTRICT STATEMENT OF CHANGES IN FINANCIAL POSITION (continued) Years Ended December 31 , 1974 and 1973 Changes in components of working capital : 1974 1973 ^ �^ Increase (decrease) in current assets : Cash $ (21, 614) $ 24,651 Notes receivable (440) (5, 560) Accounts receivable 29, 347 33, 542 Materials and supplies 77, 122 15,446 Other current assets 1, 820 107 86, 235 68, 186 ( Increase) decrease in current liabilities : Accounts payable (119, 998) 33, 735 Consumer deposits (660) (3, 500) Accrued liabilities 2, 806 ( 19, 520) (117, 852) 10, 715 Increase (decrease) in working capital $< 31, 617) $ 78, 901 r See accompnying notes TRUCKEE-DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 1974 and 1973 1. Organization and Accounting Policies Organization The Truckee-Donner Public Utility District was organized under the California Public Utility District Act to provide electric and water service to a portion of Nevada County described as Truckee and Donner Lake . Depreciation The provision for depreciation is computed on the straight-line method over the estimated useful lives of the utility plant in service. Average annual composite rates were 3. 36% and 3 .05% in 1974 and 1973 respectively. In general, retirements of utility plant and the cost of removal are charged to accumulated depreciation, which is also credited with any salvage value. The cost of renewals and betterments is charged to plant accounts. The cost of maintenance is charged to operating expense. Materials and supplies Materials and supplies are stated cost . Revenues The district does not accrue an estimate for the amount of revenues unbilled at the beginning or end of the period. Street lighting and hydrant service provided to various public departments without charge are not included in oper- ating revenues. Reclassifications Certain reclassifications have been made in the accompany- ing financial statements for 1973 to reflect reporting guide- lines set forth in the Rural Electrification Administration Bulletin 185-1 and to conform to classifications in 1974. TRUCKEE-DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 1974 and 1973 2. Restricted funds �- The District has collected and restrictively deposited funds for future uses as follows : Restricted Customer Advances Funds for Construction Dart Industries Water Agreement - the District has collected $40 per lot for future water source and storage facilities in the developers ' project . * $ 43, 050 $ 94,245 Dart Industries, Prosser Lake Electric Agreement - the dis- trict has collected $35 per lot for future electrical facil- ities in the development. 10, 885 10, 885 Ponderosa Palisades-electrical agreement to provide line exten- sions to the project. * - 9, 245 Under a general resolution of the District $50 per lot has been collected from developers and deposited for future water source and storage facilities. 35, 148 33, 655 Loan principal and interest fund - in accordance with REA and Sierra Pacific Power Company loan agreements , principal and interest payments are to be placed on deposit until payment is due. 33, 196 - Other 19, 891 - $142, 170 $148, 030 TRUCKEE-DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 1974 and 1973 2 . Restricted funds (continued) * At December 31, 1974 $60,440 of the funds advanced by developers has been utilized for general operating p g p g purposes. By contract all monies received from developers for future construction of facilities in their project are to be placed in trust until such time as the facilities are required. As trustee, the District has a liability to the trust for the monies so utilized. 3. Long-term debt REA bonds, secured by pledge of all assets: 1974 1973 First series 2% bonds, payable in annual amounts varying from $13, 000 to $14, 000 , in accordance with sinking fund requirements , balance due July, 1994 $263, 000 $276 ,000 Second series 2% bonds, payable in annual amounts varying from $3, 000 to $5, 000, in accordance with sinking fund requirements, balance of $6,000 due May, 2002 103, 000 106 ,000 Third series 2% bonds, net of undrawn funds of $98,426, payable in annual amounts varying from $3, 000 to $5, 000, in accordance with sinking fund requirements, balance of $8, 000 due May, 2004 25, 574 28, 574 $391 , 574 $410, 574 Note payable to Sierra Pacific Power Company - due in semi-annual installments of $9,213 including interest at a rate of 4.68%, final payment due March, 1983. The net revenues TRUCKEE-DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31 , 1974 and 1973 3. Long-term debt (continued) (as defined) of the Donner Lake Electric System are pledged as security. The agreement also requires the District to .- establish separate accounting records, bank accounts for the r^ transactions of this system, and a trust fund for payments on the note. Since inception, the District has not generally complied with these provisions, but as of December 31 , 1974 a waiver of compliance was obtained from the lender. Assessment payable - sewer assessments payable over a twenty year period plus interest at 6%, to Nevada County, California. Final payment due 1990. 4. Contributions in aid of construction In 1974, in accordance with the Rural Electrification Administration ' s revision of REA Bulletin 181-1, contributions in aid of construction and like contributions previously classified as donated capital have been reclassified to the plant accounts, accumulated provision for depreciation, or to the extent that construction has not been completed to customer advances for construction . The following is a summary of r transactions and reclassification during the year. Balances December 31, 1973: Contributions in aid of construction and customer advances $1, 180, 906 Donated capital 136, 515 Current year contributions net of refunds of $51,660 (27, 591) .. Amounts reclassified: Plant in service (534,019) Accumulated depreciation (591, 479) Construction in progress ( 16 , 302) Customer advances for construction, December 31, 1974 $ 148, 030 The accounting change has no material effect on the net operations of the District . TRUCKEE-DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 1974 and 1973 5. Contingencies _ Dart Industries water agreement and lawsuits In 1970 an agreement was signed between the District and Dart Industries for the purpose of providing water service to a Dart Industries subdivision. The agreement required Dart Industries to construct water source and storage facilities at Donner Lake . Subsequent to completion of the facilities, ownership was to be transferred to the District for future maintenance and operation. Although all work is complete, none of the facilities have been accepted by the District since the Attorney General of the State of California has filed suit against the District and Dart Industries to restrain them from using Donner Lake as a water source. Since this action claims no monetary damages, the District has no liability resulting from this action. Purchase commitment During the year, the District issued and subsequently cancelled a $19,000 purchase order for transformers . The vendor has filed legal action to force adherance to the terms of the order as originally placed. 6. Subsequent events In January 1975, the District received approximately $101 ,000 from the issuance of bonds for the water system improvements on West River Street. Although this is a gen- eral obligation of the District, repayment will be financed by the residents of the West River Street Assessment Dis- trict and collections will be made by Nevada County in conjunction with property tax collection. l SUPPLEMENTARY INFORMATION TRUCKEE-DONNER PUBLIC UTILITY DISTRICT _ STATEMENT OF DEPARTMENTAL OPERATIONS For the Year Ended December 31, 1974 Electric Donner Lake Truckee Water Total Operating revenues 294,858 $739, 590 $101, 276 $1 , 135 , 724 Operating expenses : Power purchased 217, 619 545, 850 - 763, 469 Transmission expense - - 25, 624 25, 624 Distribution expense 14 ,421 46 , 149 9, 535 70 , 105 Consumer account expense 28, 202 24, 127 11, 816 64, 145 Administrative and general expenses* 29, 272 73, 401 10, 043 112, 716 Depreciation expense 15, 181 50, 742 45, 584 111 , 507 Miscellaneous operating expense* 855 2, 144 293 3, 292 Interest on long-term debt 5,618 13,664 - 19, 282 311,.168 756,077 102, 895 1, 170, 140 Net operating margins ( loss) $ (16, 310 ) $ (16,487 ) $ ( 1 , 619)$ (34,416) * The District ' s accounting records do not departmentally segregate administrative and general or miscellaneous operating expenses. For purposes of this analysis, such charges have been allocated on the basis of departmental revenues. TRUCKEE-DONNER PUBLIC UTILITY DISTRICT BALANCE SHEET December 31, 1974 and 1973 MARGINS AND L ITS 1974 1973 Margins : Operating margins $1,940,521 $1,604,026 Other equities 896,620 1,417,573 Donated capital (Note 4) _ 2902996 2652258 311287137 3,286,857 (1�4542844) (756 ,683) Long-term debt (Note 3) : 1,673,293 2,530, 174 REA bonds payable 126,671 265,878 Note payable to Sierra Pacific Power Company 6 ,358 7, 122 Assessments It 80b 2 322 2 , 803 , 174 Other 26, 131 20,724 142, 170 338,291 Current liabilities: Accounts payable Consumer deposits 16,755 38,369 Accrued liabilities 14,307 14,747 Total current liabilttie allow- )00 g4 883 105,926 Llow- Customer advances for construct and contributions in aid of c LOO 19 495 37,799 , struction in 1973 (Note 4 213 ,842 136 ,720 5,146 3,326 Contingencies (Note 2) 3932775 3071540 $2,368,398 $3,469,729 See accompanying notes . RESOLUTIONS AND ORDINANCES Number Title Page Res. 7523 AMENDING TITLE 20 OF THE 1975 UNION CONTRACT 75 Res. 7524 DECLARING AND REAFFIRMING THE 1975 GENERAL DISTRICT _ ELECTION RESULTS 54 Res. 7525 AUTHORIZING THE RELEASE OF THE SURETY ON THE DART INDUSTRIES FAITHFUL PERFORMANCE BOND 88 Res. 7526 APPROVING AND ACCEPTING WITH CONDITIONS AS STATED HEREIN, THE TAHOE DONNER WATER DISTRIBUTION SYSTEM 97 Res. 7601 PROVIDING FOR AN INTERIM INCREASE IN ELECTRIC AND WATER RATES 140 Res. 7602 ESTABLISHING A QUORUM RULE FOR TRANSACTION OF BUSINESS 143 Res. 7603 APPROVING, READOPTING, RATIFYING, CONFIRMING AND REAFFIRMING ALL ACTIONS TAKNE AND THINGS DONE BY THE BOARD OF DIRECTORS AT AN ADJOURNED REGULAR MEETING OF THE BOARD ON DECEMBER 17, 1975 149 Ord. 7601 ESTABLISHING NEW TERMS AND CONDITIONS FOR COMPENSATION OF BOARD MEMBERS. . . . . 138 i f