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HomeMy WebLinkAboutAgenda TRUCKEE-DONNER PUBLIC UTILITY DISTRICT P. O. Box 309 Truckee,California 95734 Telephorr 5873896 A G E N D A OF THE BOARD OF DIRECTORS _y OCTOBER 17TH,1972 7 :30 P.M. 1. Roll Call 2. Minutes of October 3rd. 1972 3 . Bills for Approval by the Board 4 . Load Growth & Personnel Requirement $. Notice - Land Sales Managers Report 4 October 17, 1972 The regular meeting of the Board of Directors of the Truckee-Donner Public Utility District was called to order by Nelson Stone at 7: 30 in the conference room. - r--. ROLL CALL: R. Waters, absent; R. Anderson, present; D. Anderson, present; H. Loehr, present; N. Stone, present; i GUESTS PRESENT: Miss Jeanne Sollen, Mrs. N. Stone EMPLOYEES PRESENT: Cattan, Paulus , Craig, Silva MINUTES OF OCTOBER 3, 1972 The President asked if there were any corrections , additions, or ommissions to minutes of October 3, 1972. R. Anderson ask that page numbers be put on the minutes. Also that the Andersons can be noted, showing which Anderson is speaking. It was moved by Henry Loehr. Seconded by D. Anderson that the minutes be approved provided ------ T.IPYP , AAa Al cn _ ll_ Andersen asked that it be recorded Meeting of October 3, 1972. . . . . . . . . . . . . . . . . .Continued Stone: Please make a note of that. D. Anderson: It was right after your opening statement I'm sure. I asked before Adele Jones spoke. ' R. Anderson: I think he said something before Nelson spoke to. r-- Stone: Now you have before you the minutes. Does it meet with your approval, or do you want to study them more? Loehr: I move the approval of the minutes. R. Anderson: We need to be concerned about which Anderson at the end there. I think I would like to have these pages numbered to. We may need to refer to them in the future. Cattan: We will have the pages numbered. You didn' t speak to much at all, Duane. D. Anderson: Except on Bohls. I think I said a few things. So I second Henry' s motion, with the corrections. Stone: It' s been moved by Director Loehr. And seconded by Director D. Anderson, that the minutes of October 3rd meeting be accepted, with the provisions that the corrections are made. All in favor? Everyone said Aye. Loehr: This is not too important, but when you have a voice vote, be sure that nobody opposes. Because there is a chance. Stone: Yes , that is right. Okay if there are no opposals, we will go on. BILLS FOR APPROVAL OF THE BOARD Stone: Alright. The bills for the Board' s approval now. Paulus : Where do you start in them? I have a couple errors. The last page is in parenthesis, that amount which is a loss or credit, however you want to term it. Scratch those parenthesis. And directly above, where it reads Director for $500, Paul Chamber- lain' s name was in there for $100, otherwise the total would be off. Loehr: What is all this Cook all the time, what is he doing for us? Paulus: The biggest share of it is Lakeworld. He' s looked at the Sub-Division a couple of times. But most of it has been labor. Duane Anderson: Do we get reimbursed for his costs? Paulus : Yeah, close to 20%. D. Anderson: Where is the 20%? Paulus : Well the billing doesn' t show here. His bill is broken down. Lakeworld $100, something else, and so forth. Cattan: It goes to our General Funds. Page 303 Bills for Approval of the Board. . . . . . . . . . . . . Continued Paulus: Well the whole thing shows but the billing doesn' t show. This is just what we pay Cook. Cattan: Yes, this is only what is paid. Because 20% goes to General Funds. 0— Rex �n.derson: Who is Bob Slayton? Paulus: He use to work up at the Sub-Station. Stone: Is this Utility Vault for Lakeworld a reimbursible item? Or do we buy this? Cattan: No we bought this. Is that the $740? Stone: No, its $1570. Paulus: No that was for the Sub-Station. Loehr: I move that the bills be approved. R. Anderson: I second it. Stone: It has been moved by Director Loehr, and seconded by Director R. Anderson, that the bills be approved. All in favor? Loehr: Roll call, when you spend that much money. ROLL CALL R. Waters , absent. R. Anderson, aye. D. Anderson, aye. H. Loehr, aye. N. Stone, aye. It is unanimous. Stone: We have some valuable land. Besides the Developer has taken an interest in it. There is a local feeling generated to. As to what will happen to this land. D. Anderson: As far as its sale is concerned. As to whether or not the District should put it to use, or sell it, That is the extent of the public' s interest, as far as we are concerned. Loehr: Any political Sub-Division has first call, before we can sell anything. R. Anderson: May I ask two questions? Stone: We haven' t heard too much from you Rex, lets hear it. R. Anderson: I have two questions. Even though we did not receive an acceptable bid or anything as a matter of fact, on the Brockway Shortcut Property. Is that still declared surplus? Do we have to declare it surplus again? Loehr: That is something that I'm not too clear on myself. Once it' s declared surplus, does it remain surplus? Stone: It was the feeling of the Board a couple of months ago that, that matter was closed. And if someone was interested in that land again, we would have to at that time declare it again as surplus. Page 304 Notice - Land Sales D. Anderson: I would say so. Tomorrow we might find use for the land for the District. And they'd penalize us, penalize it. R. Anderson: Alright that corrolates my second question. If I understood your statement correct. The District doesn' t really need any land because if we get a new Sub-Division where we would need to put in a new Sub-Station, we would have to have an Engineer. Who would design and say in this area, this is where you should put Sub-Stations, because it will best carry the load all the way around. In the event they make this recommendation and where they would reccommend that you would put the property, put the Sub-Station. What if there is a house there? Or if It' s private property? Do we have the right to condemn? Will we keep the land that we have now to dicker and trade with them, or what? Cattan: They-will only;-leave. the Sub-Station, if we come to a big Development, on the northeast corner, of our, . . . let me get the map. R. Anderson: Isn' t that just about all of our District? Cattan: If we build, the Developer will provide us with the Sub- Station. R. Anderson: He has to do this? Cattan: When we ask for it. All is taken care of. Rex %nderson: We're well protected, then? Cattan: Yes. R. Anderson: What about where our well site is at Prosser Lake? Is there any property there? We just have an easement for the well- drilling, or what? Cattan: Yes, just for the well. Small loads we can serve from the Truckee Sub-Station. But if we have the Big loads, in the future two or three years, you only have to ask the Developer to provide you with suitable substation site. R. Anderson: Do we have to buy the lot that the Sub-Station goes on in Martis Valley? Cattan: You make a condition like North Star. R. Anderson: I see, you provide them power and they give land required. Cattan: Like North Star, they have the Sub-Station, in the middle of their Sub-Division. The only future is there. The Sub-Station has to be supplied from the Sierra Pacific lines. R. Anderson: So you have to be near the lines to. So your saying we don' t need any excess land? Cattan: The land we own you can declare it surplus. Page 305 Notice - Land Sales. . . . . . . . . . . . . . Continued R. Anderson: What about the property here? Is it big enough to take care of the District for how long? We can build another warehouse, we can increase the office, we can put garages, do we have enough room? Cattan: Oh yes. Maybe for 50 years. r-- Rex Anderson: Speaking of school grounds , I don' t know whether I should be talking about this or not. At the last meeting for the School Board, they said that they are interested in the acreage on the Brockway Shortcut, that the PUD has, and they have not received any bids on. Mr. Monroe, Superintendent and the Board. D. Anderson: For a school site? R. Anderson: Yes. It initially would be an Administrative office. As to what, 36 point some, out acres? Cattan: 36 acres , yes. R. Anderson: It would be planned to put an Administrative site on there. That there would be enough acreage to also put a new elementary school, in the event that it is needed, and it looks like the way things are going we will have to have something out in the Martis Valley area. Because they!-re just about taken up the west end of Truckee, and now we've got to get out on the east �-- side somewhere. Stone: It' s information like this we should have in this Land Use Planning Book, I have been talking about. Loehr: Well the fact that they are interested, squelches any other sale. If your Agency makes the request, then the others are given an opportunity to bid. They will probably back away. R. Anderson: I don' t know of anyone else who would be interested. I men- tioned it to Doc Tappi_a, at a Recreational Meeting the other night. You won' t have to buy the land, because the School District will give you some playland and all you have to do is walk next door. Loehr: Don' t you think we should have a mailing list of the political Sub-Divisions that would have a refusal? The school district the cemetary, the fire district, and so on and so forth? Cattan: Maybe there is a priority. Maybe the School District comes before the Hospital, or whatever. '—' __ Loehr: - Yeah, there is a tine of priority. .-aC&ttan: When I hear from Mr. Monroe, I will take it up with you. I would like to see the school take that because it would look nice, that area behind the springs, with tress and forest. R. Anderson: The School District has been trying to negotiate with the Dr. Fabian where the administrative offices are now. Page 306 Notice - Land Sales. . . . . . . . . . . . . . . . . . . Continued R. Anderson: They have just been on a lease, purchase idea. But they can' t seem to reach any agreement. Well it remains to be seen. Stone: Well lets get on with it. Does anyone want to move Eft it? Duane Anderson: I think there were several ideas , that came out that we might use. Cattan: Before you take action. Maybe I' ll prepare a list of our surplus land and location. We have a list of the land. We made it two or three years ago. D. Anderson: So with that list are we going to have a public hearing? Loehr: I don' t know any reason for a public hearing. No action taken. D. Anderson: Well then you are suggesting when we do get a specific piece of land, do you suggest that we put it up for bids? And at that time we have a hearing on that piece of land? Loehr: Yes, I think so. Stone: If you don' t want to adopt this policy, I will suggest to the Manager that he tell the prospective developer or whatever, to r--- come back after the storm. So he will have time to deal with the matter. Now, one more major item on the agenda. I think the Management Staff and Board know where this organization is. At the present time, it behooves us to determine which direction we are going to go. Probably tonight we will discuss where we are in the rate of growth. The Manager has some statistics and needs on personnel requirement. I worked somewhat independently as the Manager' s Staff and I know that we won' t see eye to eye on some of the things. I would like George, at this time to present Load Growth statistics. What you have in the way of personnel needs, and give:- us a little presentation. Cattan: When I presented this report, to form part of the minutes (which are attached) because most members said the District needs a General Manager. Especially to deal with the Public Relations. I, myself at the present time, do not think that the District with 2300 consumers , they can afford to have a General Manager, to deal with Public Relations . Because that is going to cost the District about $40,000 a year, counting his salary, his car and secretary. I suggest that where the condition takes two, I asked that an Electrical Engineer be appointed April 3rd. So I can spend at least one month with t-- him. To acquaint him with the system. As you are aware that construction does not start, until early May, in our area. Therefore it is to the advantage of the District not to engage the additional personnel, before May lst. I wish to add also that at that time we will know about the rate increase, which will go into effect. As you all know Sierra Pacific is asking for their 36. 2% rate increase. And by the end of the year or by the Middle of January, this office will be in a position to present to the Board what percentage increase the District can absorb without raising the present rates . At this moment I can only state 20%. I'm not sure about that 20, but its close. Page 307 Load Growth & Personnel Requirement. . . . . . . . . . . . . . Continued Stone: For the record, lets clarify one point. The Manager is talking about final determination, but at this time, we are paying the 36. 2% extra. And the decision as of whether this is the final amount to pay, yet has to come. But as of now we have to the 1st of October. Since the 1st of September, we have been paying it. Since the lst of October .— we have passed part of that rate increase on to the Public Utility. Cattan: We did make that raise. We said it would be a few months before we knew what that rate is. But if the rate is going to be 36. 2%, then the District would be in a very difficult situation, financially. That is if we keep the present rate. R. Anderson: Is there a way of converting the Load Growth that you say we presently have and which will be added in ' 73 that is positively confirmed? Converting that into dollars and cents as to income for the District? Cattan: We will do that at the end of the year. R. Anderson: Yes , I know you said that. I mean now, by saying you have the equivalent of 600 homes. Can you give us an average of how much that is used? Or would you be guessing too far off that it isn' t worth talking about? Cattan: We are not talking this Load. This Load of Tahoe-Donner is equivalent to 600 homes. It doesn' t mean we have 600 homes. Rex Anderson: No, no. I mean if we changed that into dollars and cents can you give me what it is going to mean in revenue to the District? Cattan: It is very difficult because Lakeworld, this would be their first winter in operation. We would know the end of November. R. Anderson: But if you were to make a guess right now. D. Anderson: You projected a load though didn' t you? Cattan: A load, but not dollars. Stone: You can add on so many cents per kilowatt. D. Anderson: Even using the equivalent of 600 homes. 600 homes aveaage $15 a month electricity, or something. I think you could put a figure on it. Cattan: It is very difficult to figure what somebody is going to do. At the end of December we will have a pretty good idea, how '— much dollar wise we can. But don' t forget the dollars we get are not all profit. D. Anderson: In other words . you are tending to paint a bleak picture in so far as the:zservice the District is going to have to provide, to the consumer, without considering what increase revenue we are going to have. I think that is what Rex is getting at. Revenue is increasing too, so we should be able to pay for the overhead and increase revenue. Page 308 Load Growth & Personnel Requirement. . . . . . . . . . . . . . . .Continued R. Anderson: Yes. I think that is probably true. Because you are projecting here that we would be spending additonal money of $120,000 in rounded figures . With the additional confirmed low growth, I think he made that statement, we would be able to tAke that additional cost plus up to a 20% rate increase. The district would still be solvent. This is if we only pay �- 20%. We hire all the additional personnel. Plus-the-billing. machines. Cattan: You can double expenses. But if it goes to 36%. . . D. Anderson: I think his yearly salary is a little bit heavy. If we can meet those as he has projected here. I don' t think we are in any trouble. Paulus : At the end of July, the revenue we took in from the residentual customers was $145,000. Now we averaged 164;300 customers which figures out about $90 for that period of time, so the residential load just doesn' t contribute that much. Its the big ones. D. Anderson: Also these people are being used for the water system as well. And if we have an increase power load, then we must have an increase in waterload. Primarily Lakeworld, and we were talking about Tahoe-Donner. So we are getting revenue from that as well. R. Anderson: I don' t have my budget figures with me, but what do we net in water as compared to electrical? Cattan: 17 I think. Electrical is sometimes o€€ I know. It sometimes more than the water. Paulus: Currently we are netting on electric 26%. That is year to date to the end of July. The only figure I have -is the net of water. It was $5400 at the end of July. The net revenue for electric Is 26% Cattan: Water has never been a paying proposition. Well, if we could promote Tom to be Manager, we could save a lot of money. R. Anderson I see. I'm not sure that our only idea was a Public Relations man. Cattan: It has been stressed to me that we need a Public Relations man. I'm not interested- in the Public Relations Manager. I am interested in the money they can save" us Public Relations Manager is good when you have 30,000 consumers. D. Anderson: It is just as good with 2000 consumers. Rex Anderson: I think it might be more important. But I don' t think we only want him as- a -PR man. . This is justti,one• of- the<-=qualities we would be looking for. I think this is important in a small community because neighbors are your friends and they can also be your enemy. _ - Page 309 Load Growth & Personnel Requirement. . . . . . . . . . . . . . . Continued Stone: There is another alternative that was mentioned. It appeared to be such a remote thing. As an alternative to accepting the expanded organization, that we are going to talk about tonight. Sometime ago a proposal waa made by Sierra Pacific Power Company that they manage this District for the Board of Directors ane there have been two instances sited. One was the city of Hawthorne, and one was the city of Fallon. I have been finding out what is going on. Our information has not I been correct in all instances. Hawthorne, has a 30 year contract To furnish power to the city. It is unincorporated. In view of 1970 they entered into a 30 year contract. This was done after a public vote. It was a bitter issue, when it came time to vote. Although there was an increase in salaries. Loehr: I think they should come here and present their case. We don' t commit ourselves to any direction. I would like to talk to the #2 man and not the rest of them. Stone: I don' t think I want to talk to that guy. I want to talk to the guy that is paying the bill. Loehr: Thats alright, and permissable, but I think to do justice to everyone, we should follow through and get all of the information. If its a management thing it would be good. I think the people would agree too. We are going to be faced with a personnel problem, and we will always be faced with the problem of equipment. All of the costs are going to go up. Lets call them here to talk to us. R. Anderson: Will they include the water? Loehr: No, they won' t take anything but the power. R. Anderson: So we are still going to have to be a Board. Cattan: The Board will study the proposal. It is not a question they are running this place. The Board would be running the District. D. Anderson: How would that affect the thought of reorganizing the Truckee Sanitary District, Truckee Donner Public Utility District into one District. Loehr: I don' t think that will go. I just don' t believe it will go, Stone: I see one big loophole. Stone & Webster surely aren' t going to manage something they aren' t going to make a good profit out of. The profit that these people would be making is what we must have to even maintain water service. If we lose the profits that we are making from the power revenue. A thousand _ consumers a day, at $6 a month is gonna go flat busted. I don' t possibly see how. . . . . —' Loehr: They will be paying you a given amount annually. All of these things must be looked into. R. Anderson: Well anyway, you did,, mention Fallon. What happened? Stone: Lets go on to Fallon. We have heard that there was a contract with Fallon. This is not so. It is an incorporated city. A bit larger than Truckee. Probably smaller than Truckee, five years from now. Page 310 Load Growth & Personnel Requirement. . . . . . . . . . . . . . . . . . . . . Continued Stone: They have a city department of electricity, sewer, water, and garbage. All managed by one Manager. The city clerk does all the billing. And Tom and I are going down there to look at their billing procedure. To see what they are doing. Talking to a girl down there in the city clerk office she bills everybody personally herself. So it must not be too bad of a job. r•—. They previously bought power off Sierra Pacific Power Company, through the Truckee-Carson irrigation ditch. So they were paying twice. Now the city of Fallon buys their power directly from Sierra Pacific then resells it like we do. Loehr: What has happened to that power generation plant that they had at Fallon, out of Lahontan Dam? Stone: I don' t know. Loehr: That was part of the TCID. And that is one of the leverages they had to get more water in there. Cattan: I think they have two Districts. I understand from what they told us two or three years ago, they. do all,- the billing. Loehr: I think we should call them and have them come. When- they can make it available. Before we make all these decisions here. We're talking about a lot of money. Cattan: We talked with Sierra Pacific three years ago aboattthem•_`doing our billing. Loehr: What are your thoughts, Tom? Paulus: Well it certainly wouldn' t hurt to see what they had to offer. R. Anderson: When are. you going to Fallon? Stone: When the work is all done this fall. Cattan: We13., I will have .-to agree with Henry. The- Board to .study the .proposal, we don'-t lose anything. It may be beneficial to the District. Loehr: Well I'd like to talk to the #2 guy. Let' s have him come and talk to us. Cattan: The #2 man is _ Merle Atcheson, he use to be the Chief Engineer. Loehr: He is a very intelligent man. And he is also an honest man. Thats the reason I'd like to talk to him. I don' t think he would pull any punches, if we ask him, any questions. Duane Anderson: Can we take -any kind of an order or a-hall- we let George do -it? Loehr: I would put,-_ t in the form of .a motion•, If you would like that? Stone: I'm not in favor of it. I'm in favor of going the other way around. Loehr: Well we aren' t going tonight anyway, are we? We have to know all these things. My motion is that the Manager set up a meeting with Mr. Atcheson of Sierra Pacific Power to explain their proposals to the District. Page 311 Load Growth & Personnel Requirement. . . . . . . . . . . . . . . . . Continued R. Anderson: Him specifically, or some he might send? Loehr: I would much prefer to have him. R. Anderson: Your motion says him. Cattan: I agree with Henry. I know the fellow personally. R. Anderson: The only thing I'm saying is if you put Mr. Atcheson name in the motion. And we're kinda tied. I mean-that if he talks to him, and says he will send someone in his place. Is that acceptable? Loehr: Certainly. R. Anderson: I' ll second the motion. Stone: It has been moved by Director Loehr. And seconded by Director Rex Anderson. That the Manager secure someone, preferable Mr. Atcheson from Sierra Pacific Company to talk before this Board on their contract management proposal. Loehr: Would you like to have a roll call on that to see where everyone stands? ROLL CALL R. Anderson," yes. D. Anderson, yes. H. Loehr, yes N. Stone, no. Loehr: You better change that vote kid, because you are not giving anything away. R. Anderson: When you print the agenda, can you make it clear enough so that it is public knowledge when it is posted in the Post Office? Make it clear on the agenda so that people will know. Loehr: It may have to be a special meeting. We don' t know. Stone: You might even go through the minutes of 3 years ago to see what the proposal was then. That is the date their contract with Hawthorne. So it probably hasn' t changed. Cattan: You don' t have to forget that maybe things will work better for them because we are surrounded by Sierra Pacific. It works better for them and for us because distributionwise, maybe they can' t reach someone on the otherside of Tahoe-Donner while we can reach it. Loehr: I don' t think we should go into any discussion and speculation until we have the facts at hand. We've already taken care of that. Stone: I just forewarn you of one thing. This happened with Mt. Wheeler. As I see it, the only reason for the formation of the Public Utility District such as ours to stay in remote from any Commercial Enterprise. In talking with Mr. Hamel over there about the Mt. Wheeler thing. This was somewhat the position they were in. And I know the REA, vehemently objects to any sort of lease on any of the things we have discussed here, In the last fifteen minutes. Page 312 Load Growth & Personnel Requirement: . . . . . . . . . . . . . . . Continued Stone: If you went as far as to enter in a management agreement like that you would probably be faced with the prospect of paying off that $450,000 loan to the REA before we could even discuss it. There wouldn' t be any reason for the existence of this Board to run a Mickey Mouse water system. r-- Loehr: Why not? You have a lot of things to run. r Stone: A $6,000 ' income, and your Board of Directors draw that much. Well go on with what you've go,. George. Cattan: Well it is all stated in my report. But I have to say it. Not to follow up on what I propose here. But to vote on an alternative where the saving would be. If your interested in that. Paulus: This Public Relation thing I don' t know, I think sometimes maybe it blown out of proportion. I think one of the big things in order to keep up our public image, is that we are going to have some additional people on the outside. We have just about got the inside filled. Until we start building on or going upstairs. We have a_limited staff which George points out here. The Staff has remained the same for the last several years. The growth has gone up continually. I know from just the revenue standpoint alone, in one year, July to iluly, the revenue has gone 20%. And the operating expense, maintenance power cost and so forth, are must about constant through the same period of time. Whieh tells you one thing. That you are doing a lot more work for the same amount of people. When ^� a guy comes in he wants- his water or power connected. He comes in because he has to, not because he wants "to. He' s ' not going into a store to buy a pair of shoes or a suit. '- He' s coming in because he has to have power and water. And we're- probably the second stop he makes after 'going t©".the bidding Inspector. So in essence we <tell the guy that we will do it as quickly as we possibly can. Quite a few people have waited a minimum of a---month, and that doesn't make people to happy when they come into a Two=Bit Utility that can' t even run a water service or a power service without waiting a month.'- I think this is the greatest things when a guy comes in and we give, the guy a definite answer. And we haven' t been able to do it because we take things on a priotIty list. Most of it up to -Lakeworld; which you can see that this is where-the revenue is. In order to have more people we are gonna have to have more equipment. It' s at the point where everyone has to take a serious look at it. Because we are at a point wherethe equilibrium doesn' t balance. 'It' s very hectic to stall people. Because thats the way they remember it. They don't remember if we get right out and do It. They sort of assume-that-and expect- it. - But If they have to wait for a month and the next day they get a bill in the mail for their �- water and electric service, it is just an unfavorable case. Rex Anderson: But when winter comes we don' t have the work to keep workers full-time. Paulus: Thats the bad thing. We have to take a hard look at it. Not just kick it around in one night, and say what we are going to do. Because we're not going to do it that fast. You can' t hire a good lineman for the summer. Because a good lineman wants year round work. . Most other places they can give full-time work. I know we kicked this around in the last union meeting. Page 313 Load Growth & Personnel Requirement. . . . . . . . . . . . . . . Continued Paulus: We're suffering growing pains and the revenue is quite there to match it. R. Anderson: Is it even feasible to consider contracting out our bigger jobs? And not increasing our year round staff? Paulus: It' ll cost just as much. - If you hire. a guy for 6 months. You will end up paying him the equivalent of hiring a guy for a year. Harker & Harker, they are examples,: they get something like $10 an hour•. Our guys get•.$6. . Harker &-Harker work a lot for Sierra Pacific. They are sort of their salvage crew. D. Anderson: Every other Utility generally, is private contractors. - Lakeworld, everyone else •up there is a private contractor. We are the only Public Utility that is installing lines for Tahoe-Donner. The Telephone Company, they're a private company. Cattan: - There are not very many people in the field of line construction only Harker & Harker. Their prices are 2 or 3 more times, more than us. D. Anderson: Just as Tahoe-Donner is paying Teicher to put the road in, the sewer and water, why can' t they pay Harker & Harker to put in the power lines-?- I don' t -think we are doing =the right thing. Stone: If you gentlemen will excuse me, Mrs. Loehr is not feeling good. I would like him to get in on this little thing here that we got. Then we will come back to what you've got, Tom. The reason I want to br•3.ng,,tkiis up i, is there was a remark sometime ago,that this was a Mickey Mouse outfit. Organizationwise, s structurewise. I think it is. We have a Board of Directors and General Manager-. We have the General •Manager who has been tremendously loaded with work. We have the Assistant Manager Tom, who runs the office. I don' t know if you guys are going •to jump on me and. disagree••with me.- All these-•people are reporting -directly to the Assistant Manager. Water Superintendent, servicemen,• linemen- foreman, warehousemen, and so on. This organization, structurewise is unbalanced. The salary of everyone in- this organization are based on the workers who get union wages . We have a lot of salary adjustment to do. We have one man that earned $2352 more than his boss. I must mention that a lot of these workers get from $1000 to $1500 more on overtime, that Management does not get in .on. Cattan: I think, Nelson, that you have that A bit mixed up. Stone: I knew you were going to say that. Now if you will take a lock at this same organization. . . . . If you have not too many men - reporting__ tq,_,a boss, you have a more efficient operation. Rather than too many men reporting to one boss. I noticed in my -� ramblings around here, that the Manager has to do a con- siderable amount of secretarial wor. He is running to the files, getting them and taking them back. Answering the telephone all the time. Also making his own appointments. Page 314 Load Growth & Personnel Requirement. . . . . . . . . . . . . . . . . . . .continued Stone: He needs a Secretary to report directly to him. Now lets deal with the Office Manager. I think we need an Electrical Engineer immediately. The Management disagrees with me. There are three linemen now, and a fourth has been requested. A meter installer is needed. It could solve your problem of getting the services out on time, Tom. We hire Krajewski as a draftsman, George has got him working something of a higher calibre. We are going to need a draftsman by next year. A billing clerk and filing clerk, and a reception clerk and typist. In effect we would hire one more gal primarily to assist the Manager and she would be Secre- tary to this Board. We would hire a draftsman, one more lineman, a meter installer. Then our Water Department is starting to suff- er, or it will when we take on the active maintenance of all the lines of Lakeworld. We are going to need another water service- man. We are going to have a Manager and an Electrical Engineer, we will discuss that later on in a future meeting. Before the end of the year in order to have these prople on deck by next May, we will have to start an active recruiting program not later than the 15th. of December. D.Anderson: Did you say Electrical Engineer or an Electrical Superintendent? Stone: Well, for the purpose of structure and organization I would call him a Superintendent. When the business grows he may have an Engineer working for him. But that is a boss that is directly in charge of all the Electrical people. I've been consulting diffe- rent organizations, referring to salary rates, and there is a considerable amount of salary adjustment, that has to take place in this organization. In some instances salary might be lowered, specifically I don't agree with the Manager's recommendation that we should hire a $25,000 or $40,000 Manager. At the present time, George is doing the job for $20,000 or something, and I think we better hold pretty pat on that salary range, which does not appear too far out of line from what I've discovered so far. While I'm fired up, I want to mention one more thing. There has been con- siderable criticisn directed against the Manager and Tom Paulus for lack of Public Relations, and not getting some jobs done that the Board Has requested. The Manager is doing a job of two men at least. Tom Paulus is, or has been doing the job of at least 3 men. This somewhat serves as an explanation of some of their shortcomings. With that I am going to sit down. You may be ex- cused, Henry, after you remark, if you have any remarks. Loehr: I have no remarks. I will keep that in mind. I think there are many adjustments. I will leave now if you don't mind. Cattan: I don't know where you got your information. Stone: Please note that Director Loehr has been excused from the meeting, due to not feeling well. Cattan: From what you have drawn, I am not doing anything, actually here in this District. Stone: Well sure, we all funnel up through you. With a buffer in between, which is Tom. Page 315 Load Growth & Personnel Requirement. . . . . . . . . . . . . . . . . .continued Cattan: Ken is very capable. I instruct him what to do, and he lines up work for our linemen. Like take today, we are installing underground cable. Tomorrow he is starting on the Sub-Station. He is supervising the line crew. All of this is done by Ken. Except when it come to meter reading and servicing, billing. It has all been electrical and not much water lately. It is alright to talk about extra men, but where is the money coming from? I know that I need a Secretary. I do my own filing, because we can't afford i t. R.Anderson: If I counted right, you recommended 6 people, and Nelson only has one more than you have up there, 7 people. So we really aren't that far off. Stone: The only one off is the Draftsman. Cattan: Ken can do drafting in the winter. Because there is no construction. You have to look at economy here. Because we are not like Sacramento or San Francisco. Where they work all year round. An Electrical Engineer is a must for this District. There are problems that have to be solved immediately, every hour of the day. Stone: Now lets not get into that George, because I have. . . . . Cattan: Excuse me by telling you I have 47 years plus 2 months ex- perience in distribution, and I think I know what I'm doing or I should. Or I shouldn't be in this position, in this place. Stone: Okay, but listen to this. Electrical Superintendent Salary range from $12,564 to $15,720. Outstanding opportunity for Engineer. Responsible for planning, operation, and manage- ment of municipal utilities with a 1972 operating budget of $2,000,000+. Degree in ME or EE preferred, and at least 5 years experience. Thats City Manager in Colorado. Many of them call them Electrical Superintendents. It is just a matter of scemantics. Cattan: An Electrical Superintendent is not an Electrical Engineer. R.Anderson: But he could be. He could be an Engineer who is Supervising other duties as well as his Engineering. We could hire him that way, because we are small enough. He could be an Engineer and Supervisor. Cattan: But he must have the knowledge of an Electrical Engineer. If someone is an Engineer, he would not like to be called a Superintendent. Stone: That's just a matter of scemantics,Let's drop that. I have one more thing to remind the Board of, that salary chart excluding the salary figure for the Board of Directors comes to about $174,000. Didn't Tom remark that is cost about 30% overhead and so on to hire our people? Page 316 Load Growth $ Personnel Requirement. . . . . . . . . . . . . . .continued Paulus: No, it only comes to about 16%. That was counting the transportation, that 30%. Stone: That comes to $215,000 which is almost a quarter of a million dollars this organization has in salaries alone. f-- R.Anderson: Did you figure out the one on the right would cost? Stone: That is $245,000 without the 16% added on it. Of course this is staged on average salary rates that I have dug up so far. I think that when we go to Fallon and Hawthorne and so, and as we talk to more people. We will get infor- mation on what the going salary is. Engineering, Managers, Superintendents and so on. R.Anderson: And then you add on the billing machine of $22,000. Stone: The operation cost this District in salary and associated fringe benefits as I see,it justifies the sitting of the Board such as this. That's fairly good size money that we are talking about. Okay. That is something to think about. Because within the next two months we are going to have to resolve it. .Anderson: Can we get a copy of your proposal. Maybe somebody to sketch it? Stone: Yes. Cattan: It can be typed on a legal sheet. Stone: Now what have we left on the Agenda, George? Right now I think this is as far as wev:need to go. For sure we need more information on salary rates. D.Anderson: How does Tahoe City bill? And North Tahoe Bill? Paulus: I know that one of them has a $25,000 machine, I'd like to take a look at. D.Anderson: Is there a way that we could use one machine between the 3 Districts? Paulus: Well, they have to be programmed. We went through something similar not too long ago. We are not quite big enough to have too much more refined than what we have, although we are growing into it. By mailing it back and forth to Tahoe City, a portion of the stuff you want when a customer comes in will be en-route to Tahoe City and back. D.Anderson: You must keep files? Cattan: As soon as the meters are read. Bills are sent out. Page 317 Load Growth Personnel Requirement. . . . . . . . . . . . . . . . .continued Paulus : The machine is about $22,000 and the programming is about $3,000. After it's their's it is their's. Our billing machine is nothing but a glorified add- ing machine. It will not compute. Stone: How much longer can we make out with that thing, Tom? Paulus: Well, I would like to think seriously of replacing it, sometime in the not too distant future, maybe by next summer, by the time we have more growth, we will have all the bugs out of it. R.Anderson: Will it give us anymore information than what we are getting now? Maybe more information to the customer? Paulus : Well, you can program it, that's the whole thing. We have so many customers that we are billed at this rate so much money, and that's all. There is a lot of things that you could do. We could determine the line loss of the feeders. We could design the card so that, well then of course, I think now the only thing we show is the kilowatts we used. He has to go back to the previous bill and subtract it. There is a lot of improvements that have to be done. We require so much information that right now we don't take advantage of it. R.Anderson: Have you looked into that Porto Pac? Paulus : No, at Sierra Pacific they use a billing card, as they actually read it. We are going to have something other than what we have now. R.Anderson: It will take some time to get the bugs out of it. But it drives you batty when two months in a row you don't get your cards back up to date, if you send them out. Stone: Anything more Tom? Paulus: No, nothing that we haven't already rehashed. We just need more people for more work. Stone: What do you have on the Manager's report, George? Cattan: When we started laying the underground at Tahoe-Donner, we poured all the foundations at the Sub-Stations. To- morrow morning we start erecting steel. Harker & Harker have only laid the underground cable. Our people are going to do the splicing when the weather is dry. Stone: Are we on schedule George? Any conflicts? Cattan: We have never been in conflict with Lakeworld. Ken is taking charge of it with our men. Stone: What about the crossing? Cattan: We can't start that, it is too late in the winter now. Stone: You do have it across the street? Cattan: And we have the permit, we got the permit yesterday, Monday. Page 318 Manager's Report. . . . . . . . . . R.Anderson: To go under the freeway? D.Anderson: Under the overpass. Why is it too late in the year? How long of a job would it take? Are the crews busy elsewhere? Cattan: They are busy. We have to see if we can get the crew from Lakeworld. They are just coming to a standstill, we may get their people that are doing the pipeline, they might do ours. They work for Teichert, several of them. We are trying to get the Sub-station steel up before the snow comes. R.Anderson: That won't be in operation until next year? Cattan: Maybe, it all depends on the weather. R.Anderson: But weren't we a little concerned about having the hack up water supply over here, crossing under the freeway? Cattan: Don has been away. He had family trouble, I think. R.Anderson: I think that is one of the reasons we approvel it,hoping we could get it in this fall, not waiting another winter. In case something should happen, with the line that is buried under the freeway. Cattan: I'll get the contractor tomorrow. It seems that Tahoe- Donner is getting very slow now. It is getting too muddy up there to install pipes. We ought to have the under- ground at Tahoe-Donner finished by the end of the week. Stone: Anything else? Cattan: No, that is all. D.Anderson: Has power been given to the house in Sierra Meadows? Cattan: No, not yet. D.Anderson: What arrangements have you made for that? Cattan: We are going to start on it. They are finishing another part of Sierra Meadows. D.Anderson: What is the homeowner being charged? Cattan: We are coming up with a new policy for the Sub-Division. D.Anderson: So the District at this time is absorbing the cost of that one. You said that the District is working out a policy, meaning you are working on the policy? Cattan: We talked about it 4 weeks ago. I'm waiting for the work to slacken, then start on this policy. We need it very badly. Page 319 Manager's Report,. . . . . . . . . . . . . . . . . . . . . .continued Stone: And your speaking now of the policy we discussed which was extension of power beyond and above the ordinary distances, where we would have to rim into a home, if it were into a cluster of homes. Cattan: Well you have to rin half a mile of line. Costing $4,000 per one customer. That's what is bad. Stone: I read in a power magazine yesterday, in the United States the average expenditure of capitol outlay to get power to somebody was $1280. And that would take the Utility al- most a lifetime to recover their investment before they start to get any turnout. Paulus: We have to pay $800. for each customer we have invested. That's drawing them all out together. Cattan: When they are going underground now Tom, it's costing that much? Paulus: But even $800. at $5.00 a month minimum. . . . . . Cattan: Using Sub-Contractors is out of the question. Harker Harker are very expensive. The time the workers leave Harker $ Harker yard, that's when their time starts. I think it would cost us about 3 times more than if we did it ourself. R.Anderson: With all the overhead that we have to have on hand? D.Anderson: I wasn't suggesting that Harker F Harker do our everyday work. I was trying to acquaint it with a Developer ins- talling water lines. Why don't we install .his water lines for him too? Cattan: We can. D.Anderson: I don't think we should. We are not in the business to subsidize developers. And in a sense we are subsidizing him by agreeing to install power lines at the sacrifice of the District. Stone: The Chair will maintain a motion from the floor for adjournment. R.Anderson: I move. D.Anderson: I second it. Stone: It has been moved by Director Rex Anderson, and seconded by Director Duane Anderson, that this meeting be adjourned. All in favor. Everyone said-Aye. Meeting is adjourned. The meeting was adjourned at 9:45 p.m. PRESIDEN OF THE BOARD OF DIREC11 B ",R �ING SEqRETARY Page 320 1) LOAD GROWTH OF THE DISTRICT AND PERSONNEL REQUIREMENT DISTRICT GROWTH In April 1968, the total number of consumers was 729, and the Administrative employees totaled 5; namely: Longo, Cattan, Paulus, 2 girls. In April 1970, the total number of consumers was 1970, and the Administrative employees totaled 411, namely: Cattan, Paulus, 2 girls and one h time. In September 1972, the total number of consumers is 2330 and the Administrative employees totaled 61,, namely: Cattan, Paulus, Krajewski, and 3 girls and one ;5 time. Ken Krajewski 50% of his time, water inspection at Tahoe Donner, Ponderosa Palisades, Martis Valley Etc. To give you an idea of our rate of growth, you only have to see the increase in number of Work Orders and Purchase Orders. Our billing machine is being outgrown and difficult to keep up, with increase in billing. We are in the process of getting prices for replacement. Portola and Alturas which have approximately the same number of customers have recently purchased an up to date billing machine at a cost of $22,000, not counting Programing Cost. Incoming telephone calls, approximately 10 per hour. In the very near future, we will be needing a girl at the telephone and do some typing in between. POLICIES: In September 1969 District had no Policies In September 1972 we have 20 policies in force. BILLING: _ .... Daily incoming payments are approximately 100; which have to be posted and credited. REVENUE: Our revenue - July 1971 - $298,614 .00 Our revenue - July 1972 - $359 ,640.00 LOAD GROWTH In this report, I am presenting the most important load which is at Tahoe Donner: 2 Ski Lifts 158 KVA Day Lodge & Night Lodge 545 KVA Club House 112 KVA Recreation Center 300 KVA Maintenance Sta.& Fire 150 KVA House Condominiums 225 KVA Total 1490 KVA - equivalent to 600 Homes ADDITIONAL LOADS FOR 1973 (CONFIRMED) Booster Pumps Tahoe Donner 400 KVA Sewer Pumps Tahoe Donner 200 KVA Club House Additional T.,D. 112 KVA 38 Condominiums T.D. 300 KVA 60 Apartments & Homeg T.B. 190 KVA Intermediate School 300 KVA Donner Pines Condominiums 400 KVA Total 902 KVA Page 321 2) ADDITIONAL PERSONNEL I recommend that the following additional personnel be hired at the end of the Winter when construction begins: YEARLY SALARY General Manager: At least 10 years of Utility Experience 25,000.00 Electrical Engineer: Knowledge of distribution lines, substations and underground 18 ,000.00 Secretary for General Manager 7 ,200.00 Water service and Maintenance Man 11,000.00 Meter Installer and helper to meter reader 11,000.00 One permanent lineman Early Spring and Additional lineman if required 12,000.00 84 ,200. 00 Benefits, Social Security Etc. ,16% 13,472. 00 97 ,672 .00 Deduct Salary of Present Manager 19,800.00 77 .872.00 Extra Transportion for Electrical Engineer 3,000. 00 Extra Transportion for Meter Installer 3,600.00 $84 ,472.00 Allow 7% increase for existing personnel predicted for 1973 by Kiplinger - $170,000 @ 7% 11,900.00 Billing Machine 22,000.00 $118, 372.00 RATE INCREASE _ The District should also be prepared to meet the increase in the wholesale rate if the Federal Power Commission should approve the 36 .2% rate increase. RECOMMENDATION I recommend that the Electrical Engineer be appointed April 1st. so that I can spend at least one month with him to acquaint him with the System. As you are aware construction does not start until early May in our area. Therefore, it is to the advantage of the District not to engage the additional personnel before May lst.1973 R.E.A. APPROVAL The only employee of the District that needs R.E.A. Approval is the Manager. In a recent publication of Rural Electrification Magazine, one sees that four Rural Co.- Op' s. are advertising for Managers by using R.E.A. Form 328. WATER A complete separation of Water from Electric is not an advantage to the District but a Disadvantage. In a large Utility it is a good practice; When our water employees do not have any work to do, we use them to do other work. For Example: Don Archer helped in doing the Formwork last October for the Donner Lake Substation. For Instance: When we had a major breakdown, the Water Crew helped the Electrical Crew and Vice-Versa. Page 322 ELECTRICAL ENGINEER BASIC CAPABILITY Voltage drop calculations. Sagging of conductors. Maximum spans due to ice loading in this area. Size of pad mount transformers and foundations. Location of pad mount for condiminiums. Design of transformer banks example; (Mill, Hospital Safeway, Teichert, Southern Pacific, Schools, etc. , ) Mapping of overhead lines. Prepare the billing of large consumers only. Location of U.G. Cables for condiminiums and supply the developer' s, contractor with details of trench depth, spacing and protection Give size of service transformers, 10KVA,I5KVA,25KVA, Etc. , Approve all subdivision maps for easements. Give size of fuses for line transformers. Supervise all phases of construction, t Page 323 BOARD OF DIRECTORS GENERAL MANAGER SECRETARY CONSULTANTS OFFICE MANAGER ELECTRIC SUP'T, I WATER SUP'T, WAREHOUSEMAN DISTRICT FOREMAN WATER SERVICEMAN- 1 DRAFTSMAN LINEMAN - 1 WATER SERVICEMAN- 2 METER READER LINEMAN - 2 BILLING CLERK LINEMAN - 3 I FILING CLERK LINEMAN - 4 RECEPTION CLERK APPR. LINEMAN TYPIIST METER INSTALLER Page 324 STATEMENT OF GENERAL FUND Bank Balance 10-17-72 39,947. 07 Deposits 44,555. 81 Adjustments Graybar (338. 57) Approved Billings 24,675 . 33 Lee Bros. Car Lease 100. 00 Sierra Pacific Power Co. 22,710. 06 Anixter-Pruzan 80.49 Bob Slayton Lakeworld S.S. 500. 00 Petty Cash 43.41 ,.-. I.B.E.W. Local Union Dues 87. 30 Joes Truckee Auto 172. 31 R.G. Gautsche Tune-up 59. 88 (48,090. 21) PAYROLL 10-15-72 O.T. GROSS NET Cattan 825. 00 670. 30 Paulus 637. 50 492. 10 Silva 39. 36 629. 76 507. 24 Lopez 577.60 482. 80 Krajewski 500. 00 390. 80 Grow 25.46 481. 06 385 .61 Reynolds 18. 24 506. 08 398. 36 Craig 462. 08 384. 08 Straub 19. 64 461.54 324. 95 Archer 428. 80 339.44 Bacom 3.26 350.46 257. 04 Craig 61.20 333. 20 252. 30 Connell 292. 00 228. 00 Duer 243. 20 193. 72 Nylund 235. 20 198. 92 Hutchinson 235.20 188. 02 Hicks 235.20 187. 92 Spencer 124. 80 103. 76 (5,985. 36) 167. 16 7,558. 68 BANK BALANCE 30,427. 31 10-17-72 BILLS FOR BOARD' S APPROVAL Directors 500. 00 J.H. Baxter Poles 2,184. 53 Bud' s Electric 1.47 Bruning Division Map Copies 7. 58 Wilsey & Ham Rate Case 197.40 Vails Pharmacy Film 10. 51 Joes Auto Service Ken' s Pickup 65 . 34 Kauffman Chevrolet Brakes on Chev. 77. 64 Ken' s Tire Center 19. 12 Cook Assoc. - 1,710. 16 Utility Vault Co. Lakeworld Sub.S. 1,570. 00 Gordon H. Huber Copy Machine 67. 39 Fred' s Richfield Meter Reader P.U. 54.27 Home Lumber Co. Whse. Addition 950. 34 ..._ Metal Products " it 59.44 Oroville Truck & Tractor Backhoe rental & 835. 28 Phillips Petroleum parts 6. 77 Sun Printing Forms 24.42 Sierra Sun Subscription 5. 00 Standard Oil Co. 213.45 Allied Automotive line trunk 9. 31 Alpha hooks 9. 17 RTE Tfrs. 466. 20 Maydwell & Hartzell Elec. Inv. 898. 38 Rockwell Mfg. Co. Water meters 1,008. 89 Anixter-Pruzan Elec. supplies 862.51 page 32S BILLS FOR BOARD' S APPROVAL. . . . . . . . . . . . .continued Paul Chamberlain 100. 00 Charles Olana Donner Crossing 144. 00 Armanka Office Supply 24. 10 Martin McDonough Rate Case 1,053. 91 O''Hair Supply Water Inv. 2 ,843. 52 Graybar Elec. Elec. Inv.&Spls. 1,066. 08 Walkers Toggery Rain Clothes 35 . 70 (18,490.62) Balance after payment of above $11,936 .69 Page 326,' RESOLUTIONS & ORDINALS NLAVH3ER TITLE PAGE . ,�. 7218 ' Sick Leave - Severance 327 7219 !i'' Electric Rates - Amending Resolution 357 - - 7116 & 7201 7220 v- S.P.P.Co. Management Contract Presentation -330 3�� 7221 /� Truckee-Mobile Home Grant Deed 61& 7222 Electric Rates 7223 GS-3 Rate Increase 10% 3��