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HomeMy WebLinkAbout1994-12-05 Min - Board SPECIAL MEETING December 5, 1994 The special meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Maass at 6:46 PM in Room 54 at the Tahoe Forest Hospital Extended Care Facility. ROLL CALL: Directors Joe Aguera, Ron Hemig, Bob Jones, Jim Maass and Pat Sutton were present. SPECIAL GUESTS: John Corbett. EMPLOYEES PRESENT., Peter Holzmeister. CONSULTANTS PRESENT: Attorneys Steve Gross and Christina Bark. OTHERS PRESENT: Barbara Barte of the Sierra Sun, Bob Sutton and Ron Hemig. PUBLIC INPUT REGARDING PRESENTATION OF A RESOLUTION OF ACKNOWLEDGMENT AND APPRECIATION TO JOHN CORBETT There was no public input. PRESENTATION OF A RESOLUTION OF ACKNOWLEDGMENT AND APPRECIATION TO JOHN CORBETT Resolution No. 9442 acknowledging appreciation of John Corbett was presented to outgoing Director Corbett. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 6:48 PM. TRUC, E DONNER PUBLIC UTILITY DISTRICT L Bob Jones, Pres' e i � e Prepared by Susan M. &raigDeputy District Clerk smc 1215194 Pagel ROUTINE BUSINESS 12. Consideration and possible approval of minutes of November 21 and 28, 1994 13. Consideration and possible approval of bills 14. Correspondence CLOSED SESSION 15. Conference with legal counsel, existing litigation between TDPUD and Sierra Pacific Power Company, two cases, Government Code Section 54956.9(a) 16. Conference with labor negotiator pursuant to Section 54957.6; agency negotiator, Steve Gross - unrepresented employee, General Manager RETURN TO PUBLIC SESSION • 17. Possible action resulting from closed session ADJOURNMENT NOTE., The complete packet of material relating to the agenda is available for review at the PUD office and at the Truckee Library Posted and mailed on December 1, 1994 J „f f Susan M. Craig, Deputy District rk • • REGULAR MEETING December 5, 1994 In accordance with District Code Section 2 08 010 the TDPUD minutes are action only minutes All Board meetings are recorded on audio tapes which are preserved perpetually and made available for listening to any interested party upon their request. The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at 7:12 PM in the TDPUD Board Room by President Maass. ROLL CALL: Directors Joe Aguera, Ron Hemig, Bob Jones, James Maass and Patricia Sutton were present. EMPLOYEES PRESENT.' Mary Chapman, Susan Craig, Steve Hollabaugh, Peter Holzmeister, Kathy Neus, Bob Quinn, Dave Rully and Scott Terrell. CONSULTANTS PRESENT: Attorneys Christina Bark and Steve Gross. OTHERS PRESENT.- Bob Sutton. OATH OF OFFICE • Ron Hemig and Patricia Sutton, elected last month, were sworn into office by the District Clerk. ELECTION OF OFFICERS Director Aguera nominated Bob Jones to act as President of the Board. Director Sutton moved that he be elected by acclamation. SO MOVED. Director Sutton nominated Joe Aguera and moved that he be elected as Vice President of the Board. SO MOVED by acclamation. Director Aguera nominated Pat Sutton for Treasurer and moved that she be elected by acclamation. SO MOVED. BUDGET WORKSHOP - INTRODUCTION TO THE DRAFT 1995 BUDGET The 1995 draft budget has been distributed for review. As prepared, it calls for a water rate increase of$2.53 per month and no change in electric rates. There may, however, be the opportunity to reduce wholesale power costs. That, in turn, could permit the District to lower its electric rates. Also, R. W. Beck was retained to develop a draft rate structure that would set electric rates at a level equal to or lower than the comparable SPPCo rates. • In preparing the budget, neither the potential wholesale power cost reduction or the proposed electric rate structure were considered. The 1995 budget could be adopted now 1215194 Pagel • and amended when the wholesale power contract is finalized and when the review of the Beck study has been completed or adoption can be postponed until the unknowns are adequately handled. Complete copies of all the material discussed have been attached to these minutes for reference. The Administrative Services Manager reviewed the Electric and Water Income Statements, Investment Report, Statement of General Fund, Debt Service Ratio Coverage Calculation Reports, Safe Drinking Water Bond Law Project Report and a Recap of Available Funds. The Electric Income Statement shows a year-to-date gain of $89,726 and a loss of $203,615 for the same period last year. The Water income Statement shows a year-to- date loss of$307,463.75 and a loss of$404,802.51 for the same period last year. There is currently a balance in the General Fund of $767,649. There are also two Prop 55 project reimbursement requests for $330,949 and $186,185. These amounts will be received during November and December respectively. The covenants of the Certificates of Participation require that the District's net revenue should be at least 1.1 times the principal and interest payments on the debt in both the Electric and Water Departments. While not meeting this ratio at any one time during the . year is not a problem, the required ratio must be met at year end. The Board will be provided with a full report in January 1995. The Manager reviewed with the Board the major budget items (purchased power, debt service, personnel and fringe benefits, insurance, building operation, telephone, vehicle fuels and postage); a Connection Fee Summary showing current fees and two options; Residential Water Rates, current and proposed. The Manager noted there is no increases in staff proposed in the 1995 budget. in addition, no reorganization is reflected in the document; however, reorganization is something to be discussed as it could save the District money. Vehicle replacement is included in the document. After some discussion, Director Maass moved that the Board set a public hearing to discuss a water rate increase and adoption of the 1995 budget for 7:30 PM on December 19, 1994; seconded by Director Aguera. All Directors, aye, by voice vote. SO MOVED. PUBLIC INPUT There was no public input. CONSIDERATION OF R. W. BECK REPORT ON ELECTRIC RATE DESIGN OPTIONS; . SETTING A PUBLIC HEARING DATE TO RECEIVE PUBLIC COMMENTS ON A POSSIBLE ORDINANCE TO CHANGE THE DISTRICT'S RATE STRUCTURE 1215194 Page 2 The significant feature of the residential customer rate is the proposed implementation of a two-tiered energy rate. Tier 1 would provide a lower rate for minimum baseline energy allowances for customers who permanently reside in Truckee (4591o). The baseline energy allowances would be differentiated seasonally and would provide an additional allowance to those customers whose primary source of space heating is electricity. It is estimated that only 17% of the District's customers rely on electricity for their primary source of space heating. The suggested energy allowances are identical to SPPCo allowances. All other energy use would be billed at the Tier 2 rate including all residential customers not permanently residing in Truckee. Beck suggests the District's three General Service Rate Schedules adopt the same customer demand classifications as those used by SPPCo as well as other rate design changes in the Small, Medium and Large General Service Rate Schedules. The Board reviewed a summary of R. W. Beck's Electric Rate Summary comparing the District's current rates, proposed rates and SPPCo comparable rates. In addition to its rates, the District levies a monthly fuel charge and, for Large General Service customers, it levies power factor correction charges and primary voltage delivery discount. Until the District re-examines its cost of service including any modification to its power supply contract with SPPCo, Beck suggests that these charges remain unchanged. ® Beck estimates that SPPCo rates applied to the District's billing determinants would collect 9.7% more revenues than the District's current rates. If the District were to adopt SPPCo general service customer classifications, Beck estimates the District's annual revenue would increase six to ten percent without any other changes to District rates. Counsel reported that there does not appear to be a legal problem with charging different rates to full and part time residents. He has prepared a memo and will provide copies to the Board. Director Maass moved, and Director Aguera seconded, that the Board schedule a public hearing for December 19, 1994 to receive comments on an ordinance changing the District's electric rate structure. ROLL CALL: all Directors, aye, with the exception of Director Sutton who abstained. SO MOVED. CONSIDERATION OF SETTING A PUBLIC HEARING TO RECEIVE PUBLIC COMMENTS REGARDING A PROPOSED RESOLUTION ADOPTING A GROUNDWATER MANAGEMENT PLAN The PUD is in the process of preparing a Groundwater Management Plan. The plan has the goal of gathering information about the District's groundwater basin, monitoring the basin water quantity and quality, and protecting the basin from contamination or overdraft. In order to comply with the timeliness provisions in the law, it is recommended that the • Board schedule a public hearing for January 3, 1995 at which time a workshop on the draft plan will be conducted. 1215194 Page 3 • Director Maass moved, and Director Aguera seconded, that the Board schedule a public hearing for January 3, 1995 to consider adoption of the proposed Groundwater Management Plan. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF A PROPOSAL FROM SAUERS ENGINEERING TO PERFORM SERVICES RELATING TO PROSSER ANNEX AND NORTHSIDE WELLS The District plans to replace an old pump in Northside Well and install a pump in the new Prosser Annex Well using Proposition 55 funds. Staff feels it is important to have those wells fully operational by Memorial Day 1995 in order to meet the high summer demand for water. After reviewing Sauers Engineering's proposal, Director Maass moved that the Board approve the proposal dated November 30, 1994 relating to Phase 3 Engineering Services, Safe Drinking Water Bond Law Project; seconded by Director Aguera. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF TRANSFERRING FUNDS FROM THE CERTIFICATE OF PARTICIPATION ACQUISITION FUND TO THE WATER GENERAL FUND The Board reviewed a list of expenses relating to SCADA and other projects that have been paid and are eligible to be reimbursed from the balance of the 1991 Water System Improvement Project Certificates of Participation Acquisition Fund. Director Maass moved, and Director Aguera seconded, that the Board authorize staff to transfer $86,220.83 from the 1991 Water System Improvements Project Certificates of Participation Acquisition Fund to the Water Department General Fund to reimburse the fund for payments made for projects listed and attached to Mrs. Chapman's December 1, 1994 staff report. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF TRANSFERRING FUNDS FROM THE FACILITIES FEES RESTRICTED FUND TO THE WATER AND ELECTRIC GENERAL FUND After reviewing the documents, Director Maass moved that the Board adopt Resolution No. 9443 authorizing the transfer of funds from Electric Facilities Fees to the Electric General Fund and Resolution No. 9444 authorizing the transfer of funds from Water Facilities Fees to the Water General Fund; seconded by Director Aguera. ROLL CALL: Aguera, Hemig, Maass, Sutton and Jones. SO RESOLVED. CONSIDERATION AND POSSIBLE APPROVAL OF MINUTES OF NOVEMBER 21 AND 28, 1994 Director Maass moved, and Director Aguera seconded, that the Board approve the minutes of November 21, 1994 as presented. All Directors, aye, with the exception of • Director Hemig who abstained since he was not on the Board at the time of that meeting. SO MOVED. 1215194 Page 4 • Director Maass moved, and Director Sutton seconded, that the Board approve the minutes of November 28, 1994 as presented. All Directors, aye, with the exception of Director Hemig who abstained. SO MOVED. CONSIDERATION AND POSSIBLE APPROVAL OF BILLS Director Maass moved that the bills presented for consideration be approved for payment; seconded by Director Aguera. All Directors, aye, by voice vote. SO MOVED. CORRESPONDENCE Southwest Gas Corporation notice of November 23, 1994 Southwest Gas has applied to the California PUC for a Certificate of Public Convenience and Necessity for the installation of distribution facilities for natural gas service within the District's boundaries (as well as E/Dorado County and other portions of Placer and Nevada Counties). The Negative Declaration and Initial Study will undergo a 30 day public review period; comments must be received in writing by 5:00 PM on December 30, 1994. Director Sutton moved that staff be directed to review the Negative Declaration of Southwest Gas and make appropriate comments to the reviewing agency; seconded by • Director Aguera. ROLL CALL: Aguera and Sutton, aye; Hemig, abstained Maass and Jones, no. MOTION FAILED. CLOSED SESSION At 10:06 PM, the Board adjourned to closed session to discuss the following: Conference with legal counsel, existing litigation between TDPUD and Sierra Pacific Power Company, two cases, Government Code Section 94956.9(a) Conference with labor negotiator pursuant to Section 54957.6; agency negotiator, Steve Gross- unrepresented employee, General Manager. RETURN TO PUBLIC SESSION - POSSIBLE ACTION RESULTING FROM CLOSED SESSION The Board returned to public session at 11:25 PM. There was no action taken or direction given as a result of closed session. ADJOURNMENT . There being no further business before the Board, the meeting was adjourned at 11:26 PM. 1215194 Page 5 i • TRUCKEE DONNER PUBLIC UTILITY DISTRICT r� Bob Jones, Pr ' n / Prepared by Susan M. raig, Deputy Districf Clerk 61 Smc 1215194 Page 6