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HomeMy WebLinkAboutAgenda TRUCKEE - DONNER PUBLIC UTILITY DISTRICT POST OFFICE BOX 309 TRUCKEE, CALIFORNIA 95734 TELEPHONE 587-3896 A G E N D A of the BOARD OF DIRECTORS SEPTEMBER 18 , 1973 7: 30 P.M. 1 . Roll Call 2 . Minutes of September 4, 1973 3. Bills for Boards Approval 4. Donner Lake Utility Company Proposal 5 . Long-Range Financial Forecast 6 . Surplus Land 7 . Resolution 7321 - Donner Lake Intake MANAGERS REPORT Executive Session TRUCKEE - DONNER PUBLIC UTILITY DISTRICT POST OFFICE SOX 309 TRUCKEE. CAL-IFORNIA 95734 g TELEPHONE 567-3696 M E M O R A N D U M TO: All Directors DATE: September 12 , 1973 FROM: Tom Paulus SUBJECT: Financial Forecast Directors Rex Anderson, Duane Anderson, and I met last evening and discussed tentative topics to propose at the coming board meeting. It is the intent to place the topics in order of impor- tance with possible deletions and then secure quotations from both Bank of America and Bartle Wells for the individual topics below: 1. Customer and revenue projections annually to commence immediately and run through a five-year period. Then at three year intervals to 1985 . 2 . Financing major construction from bonds in lieu of operation profits . 3. The acquisition or incorporation of the Cemetary , Recreation and Park, and Sanitary Districts . 4. The determination of maximum annual revenue on our investment by the leasing of electric facilities . S . What alternate power sources are available and are feasible? 6 . A ratio of additional employees to growth and revenue increases . 7. The purchase of the Donner Lake Utility Company, water rights and facilities . 8. Line extension policy that will not discourage development and not be a complete out-of-pocket cost. ETP/mhk Page 163 t AM Dra.tt 9/ a/ si SUPPLEMENTAL AGREEMENT BETWEEN TRUCKEE- DONNER PUBLIC UTILITY DISTRICT AND DART INDUSTRIES, INC. , RESPECTING TAHOE DONNER DEVELOPMENT This supplemental agreement, made and entered into this day of 1973, by and between Truckee-Donner Public Utility District, a local public agency of the State of California, hereinafter referred to as "the District, " and Dart Industries, Inc. , a Delaware Corporation authorized -to do business in California, hereinafter referred to as "Dart_ " W I T N E S S E T H: WHEREAS, the District and Lakeworld Development Corp. entered into an agreement dated March 19, 1970, recorded in Book 509 of Officials Record of Nevada County at page 554 (hereinafter called "the 1970 agreement") to provide water service to the Tahoe Northwoods Development (now known as "Tahoe Donner") ; and WHEREAS, on February 23, 1971, Dart assumed the rights and obligations of Lakeworld under said contract with the concurrence of the District; and WHEREAS, circumstances have arisen which made the parties hereto unable to guarantee that the Donner Lake water source contemplated in the 1970 agreement will be available to the District; and WHEREAS , the District and Dart desire to study and provide for alternate water sources and facilities for Tahoe Donner should the Donner Lake water source be unavailable; Page 164 NOW, THEREFORE, in consideration of the District continuing to give assurances of water service to Dart and to the appropriate public agencies as required by Paragraph 16 of the 1970 agreement and in consideration of the mutual promises herein contained, Dart and the District agree as follows_ 1970 AGREEMENT 1. This agreement supplements the 1970 agreement, which shall remain in full force and effect. GROUNDWATER STUDY 2 . The District shall contract with qualified con- sultants to conduct a geologic study of and prepare a report on the groundwater resources within and adjacent to the District boundaries. This study shall be commenced immediately and shall be completed expeditiously. 3. Dart shall pay the actual cost of the study referred to in Paragraph 2 above, up to $20,000. Dart shall deposit said $20,000 with the District withiny/10 days from the date of this supplemental agreement. Within #@ days of the study' s completion, the District shall return to Dart any portion of the $20 ,000 which was not expended. WELL CONSTRUCTION 4 . The District shall as soon as practicable drill, test, and outfit a well and appurtenances as described in Exhibit A hereto to be connected to the main line serving Tahoe Donner. The well shall have a minimum capacity of 500 g.p.m. and shall be located as close as practicable to Tahoe Donner. -2- 5 . The District shall select the site or sites for said well and appurtenances and the District shall ` i acquire the interests in land, if any, needed to construct, operate, maintain and repair, said well and appurtenances. 6 . Should initial drilling and testing at the first a location selected by the District indicate that a well at that site with a minimum capacity of 500 g.p.m. cannot be placed into production, the District may select another site or sites and shall carry out its obligations under Paragraph 4 above at such other site or sites. 7 . (a) Dart shall pay the costs and expenses directly attributable to design and construction of the facilities to be S ` provided under Paragraphs 4, 5 and 6 above, which costs and expenses shall include but not be limited to (a) payments to engineers and contractors and (b) costs of acquiring the necessary interests in lands and any necessary permits or other entitlements of use, including but not limited to court costs, appraisers fees and legal fees; provided, however, that the District shall not expend in excess of $200,000 under said T paragraphs unless and until it has received prior written con- sent from Dart. The District shall periodically bill Dart for said costs and expenses incurred under said paragraphs and shall provide Dart with supporting invoices or other documen- tation. Dart shall pay the District the amount billed within 10 days after receipt. (b) Dart shall establish with a California bank acceptable to the District an irrevocable letter of credit in favor of the District in the amount of $200,000 to assure -3- .h payment by Dart of said costs and expenses incurred by the District pursuant to Paragraphs 4, 5, and 6 above. Should Dart fail to make the required payments to the District with- in 10 days after receipt of the bills therefor, the District may draw on the letter of credit to pay said costs and expenses it has incurred. The letter of credit shall be governed by the bank' s standard and reasonable requirements and shall provide that the District may draw on it only after Dart has failed to pay a properly documented bill within the time limit established by this paragraph. The amount of the letter of credit may be reduced periodcally by Dart at its election to reflect amounts already paid to the District hereunder, and the letter of credit shall be released when the work to be done under Paragraphs 4 , 5 and 6 above is completed. (c) All invoices and payments under this para- graph shall be subject to subsequent audit and review by Dart. B. Upon completion of said well and appurtenances as described in Exhibit A hereto, Dart shall, pursuant to Paragraph 8 (a) of the 1970 agreement, convey to the District all completed works referred to in Paragraph l (a) of the 1970 agreement. Pursuant to Paragraph 8 (b) of the 1970 agreement, the District shall accept conveyance of these works and shall thereafter operate, maintain, repair and replace such works and provide water service therefrom. 9 . The parties to this supplemental agreement recognize that the well referred to in Paragraph 4 above -4- is not intended to be sufficient to serve the ultimate re- quirements of Tahoe Donner. It is the intent of the parties that this well shall provide partial water service and that either (a) the Donner Lake water source contemplated in the 1970 agreement or (b) the source described in Exhibit A here- to or (c) an alternate source or sources developed pursuant to this supplemental agreement will be provided to meet the additional ultimate water requirements of this area. PROVISION OF SOURCES TO MEET ULTIMATE REQUIREMENTS 10. The parties reaffirm their intent to pursue vigorously all steps necessary to permit them to develop and use the Donner Lake water source as contemplated in the 1970 agreement. It is the intent of the parties that only if the Donner Lake source does not become available in time to meet the increasing demands of Tahoe Donner shall other water sources and facilities, as hereinafter referred to, be provided and constructed. It is the further intent of the parties that the facilities described in Exhibit B hereto (hereinafter called "the Exhibit B facilities") shall be constructed only if an alternate source or sources and facilities cannot be pro- vided and constructed in time to meet the increasing demands of Tahoe Donner. 11. After completion of the well and appurtenances referred to in Paragraph 4 above, Dart shall project quarterly the anticipated water requirements of Tahoe Donner for the succeeding two years based on the standards and requirements in Paragraph 1 (a) of the 1970 agreement and inform the -5- r District thereof. If, at any time, the District determines that the actual capacity of the existing water sources pro- vided by Dart pursuant to this supplemental agreement will be insufficient to meet the estimated demands, including emergency requirements that cannot be met by storage, of Tahoe Donner 18 months in the future as determined by the District, the District shall notify Dart in writing specifying the anticipated dates and amounts of such insufficiency. 12. If Dart, within 6 months after receipt of no- tification described in Paragraph 11 above, does not (a) con- vey to the District the Donner Lake facilities described in the 1970 agreement, or (b) assure that it will provide to the District at no cost to the District a suitable additional water source and facilities, yielding at least 250 g.p.m. , in time to meet Tahoe Donner` s increasing demands, the District shall construct the Exhibit B facilities. Said facilities shall be sized to meet a demand of 4000 g.p.m. less the amount of water provided by the well constructed pursuant to Paragraph 4 above and any other water sources and facilities provided by Dart pursuant to this supplemental agreement. 13. Should Dart assure an additional water source and facilities as permitted by Paragraph 12 above, the pro- visions of Paragraph 11 above shall remain in effect and the District shall give Dart a new 18 month notice before con- structing the Exhibit B facilities. Dart shall at all times have the option of providing and transferring to the District, and the District shall accept, additional water sources and -6- facilities meeting the requirements of Paragraphs 11 and 12 above in lieu of the District constructing the Exhibit B facilities . i 14 . The District shall assist Dart in locating d and developing additional water sources and facilities which would delay or obviate the necessity of constructing the Exhibit B facilities. To the extent requested to do so by Dart, the District (a) shall obtain the necessary interests in land and any necessary permits or other entitlements for use, (b) shall construct, test and outfit all wells or other source facilities, and (c) shall construct all necessary appurtenances required to integrate the additional water sources into the system serving Tahoe Donner. By making such requests, Dart will be agreeing to pay the costs and expenses directly attributable to the work requested, which costs and expenses shall include but not be limited to (a) payments to engineers and contractors and (b) costs of acquiring the necessary interests in land and any necessary permits or other entitlements of use, including but not limited to court costs, appraisers fees and legal fees. Dart shall establish a letter of credit in the form described in Paragraph 7 above and subject to the provisions thereof in an amount sufficient to assure payment by Dart of the costs and expenses incurred by the District under this Paragraph 14 . 15. Dart shall finance construction of the Exhibit B facilities. The District shall not expend in excess of $1.5 million for construction of these facilities without Dart' s -7- prior approval. All plans and specifications for the Exhibit B facilities and all modifications thereof, shall be submitted to Dart for review, which will be expeditiously carried out so as not to delay ,construction. 16 . Dart shall reimburse the District up to $100, 000 for those operation and maintenance costs of the Exhibit B facilities incurred by the District for a period of S years after completion of the facilities which are in excess of the operation and maintenance costs which would have been incurred had the Donner Lake facilities described in the 1970 agreement been utilized. The District shall semiannually submit to Dart full documentation showing the basis of its estimate of increased operation and maintenance costs. 17. Within 10 days from the date of this supple- __ -"_ mental agreement, Dart shall establish with a California bank acceptable to the District, an irrevocable letter of credit in favor of the District in the amount of $1.6 million. The letter of credit shall be governed by the bank' s standard and reasonable requirements and shall provide that the District may draw on it to pay the costs and expenses directly attributable to design and construction of the Exhibit B faci- lities. Such costs and expenses shall include but not be limited to (a) payments to engineers and contractors and (b) costs of acquiring the necessary interests in land and any necessary permits or other entitlements of use, including but not limited to court costs , appraisers fees and legal fees. -8- The District may also draw on the letter of credit to reimburse the D' trict for the increased operation and maintenance c ia scribed in Paragraph 16 above. The letter of credit shall be used only after all feasible alternate water sources have been investigated and deter- mined to be inadequate to meet the water needs of Tahoe Donner. 18. The letter of credit and the obligation of Dart to pay for the Exhibit B facilities may be terminated by Dart if (a) Dart provides the District alternate water sources and facilities which have a 4000 g.p.m. total capacity, or (b) upon completion and transfer to the District of the Donner Lake facilities described in the 1970 agreement with all legal entitlements for use. At Dart' s request, the District shall notify the bank in writing of its consent to termination. If the Exhibit B facilities are constructed, the balance of the letter of credit remaining after construction and five years of operation shall be cancelled. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year first above written. TRUCKEE-DONNER PUBLIC UTILITY DISTRICT i By k President, Truckee-Donner (Seal) Public Utility District ATTEST: Secretary, Truckee-Donner Public Utility District DART INDUSTRIES, INC. 4 By i �. -9- ACKNOWLEDGMENT State of California ) ss County of ) On this day of 1973, before me, personally appeared and known to me 1 to be the president and secretary of the Truckee-Donner Public Utility District that executed the within instrument and acknowl- edged to me that such district executed the same. Notary Public in and for the above County and State State of California ) ss County of On this day of 1973 , before me, personally appeared known to me to be the of the corporation that executed the within instrument and acknowledged to me that such corporation executed the same. Notary Public in and for the above County and State ' -10- STATEMENT OF GENERAL FUND Bank Balance - 9-4- 73 43,087 . 84 Deposits 50 , 366. 14 Approved Billings 16 , 952 . 02 Oroville Truck & Tractor 2 mos . backhoe rental 1,473. 40 IBEW 82 . 00 Discounts (. 58) Petty Cash 32 . 17 Tom Paulus Sac. $ Reno travel 7 . 85 Sierra Pacific 38, 305 . 86 U. S. Post Office 200 . 00 (57 ,052. 72) PAYROLL 9- 15- 73 DT OT STANDBY GROSS NET Silva 26 . 83 71 . 50 706. 08 599 . 08 Paulus 697 . 43 562 . 95 Reynolds 4. 99 66 . 50 603. 49 482 . 51 Grow 585 . 20 455. 37 Krajewski 575 . 00 433. 31 Lopez 33. 25 565 . 25 434 . 38 Sharp 23. 44 17. 58 539 . 12 399 . 59 Straub 464. 00 342 . 46 Connell 33. 25 387 . 65 279 . 09 Morgan 386 . 64 286 . 65 Craig 297. 60 224. 51 Kinzie 12 . 07 269. 67 216 . 89 Kirchner 227. 20 174. 24 Lopez 11. 98 171 . 58 140 . 22 (5 ,031 . 25) 23. 44 106 . 70 171. 25 6 , 475. 91 Bank Balance - 9-18- 73 31 ,370 . 01 BILLS FOR BOARDS APPROVAL Directors 500 . 00 Paul Chamberlain 100 . 00 r George Cattan pension 258 . 75 Cook Associates ($84. 70 Donner Creek Well) 4,531 . 10 Crown Life long-term disability 214 . 96 Sunrise Clinical Lab water testing 10 . 00 O.B. ' s Board after hours meals 54. 49 Atlantic Richfield gas 123. 86 APPA elec . safety mailers 100 . 00 Allied Auto. tools , misc. 118 . 89 Alpine Business Service billing supplies 136 . 32 Alpha Hdwe. tools 56 . 95 Nevada Safety Supply ear muffs 21 . 58 Murray, Burns , & Kienlen Lakeworld 552 . 06 Martin McDonough Lakeworld ($1 , 236. 50) 1 ,495 .63 Builders Service Center Forest Service Shaft 47. 70 Truckee Tahoe Lbr. it it paint house 313. 92 McGraw-Hill subscription 6 . 00 Wyckoff Co. poles 9,965 . 85 Hap Warnke unload $ deliver poles 150 . 00 Western Auto tools 6 . 43 T $ S Constr. 5 water services 737. 50 Dictaphone tapes 17 . 43 Bruning Division map copier 26 . 50 Pacific Telephone monthly bill 322 . 64 Specialty Oxygen welding supplies 123 . 87 Standard Oil 34 . 09 Tom Paulus lunch w/REA rep. 4. 85 (20 ,031. 42) Balance after payment of above 11 ,338. 59 Page 165 RESOLUTION NO. 7321 of the TRUCKEE-DONNER PUBLIC UTILITY DISTRICT LANDS COMMISSION INTAKE LEASE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE TRUCKEE-DONNER PUBLIC UTILITY DISTRICT, that the manager and legal counsel prepare , execute , and file on behalf of this District an application to the State Lands Commission for the lease of a right-of-way over a strip of land sit- uated within the Northeast quarter of Section 18 , T 17 N, R 16 E, MDM on which the intake pipeline now constructed by Dart Industries , Inc. lies , pursuant to the Memorandum of Understanding reached between representatives of this District , Dart, said Commission, and the Office of the Attorney General , dated August 6 , 1973. Passed and adopted at a regular meeting of the Board of Directors of said District this 18th day of September 1973, by the following roll call vote : AYES: H. Loehr D. Anderson N. Stone R. Anderson R. Waters NOES: NONE > ABSENT: NONE > TRUCKEE-DONNER PUBLIC UTILITY DISTRICT BY: ROY ATE ES ENT OF THE BOARD ATTEST: CLERK THEREOF Page 166