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HomeMy WebLinkAbout1996-11-20 Min - Board REGULAR MEETING November 20, 1996 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 areserved Pe erp tually and made available for listening to any interested 08dy upon their request The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at 7.06 PM in the TDPUD Board Room by President Hemig. ROLL CALL: Directors Ron Hemig, Bob Jones, Patricia Sutton and James Maass were present, Director Joe Aguera was sick and unable to attend. EMPLOYEES PRESENT. Mary Chapman, Susan Craig, Steve Hollabaugh, Peter Holzmeister, Kathy Neus, Bob Quinn and Scott Terrell were present. CONSULTANTS PRESENT. Engineering Consultant Keith Sauers. OTHERS PRESENT. Bill Quisnell, Vince Deveney, Lou Fellows, Tony Lashbrook, Steve Wright, Steve Randall along with several other unidentified interested parties. PUBLIC INPUT There was no public input. DISCUSSION OF THE DRAFT 1997 BUDGET The Board has been presented with the draft 1997 budget which is a summary document. The work order detail, backing up the summary, is also available to anyone who would like a copy. Tonight, staff will answer questions and help the Board understand the document. Recommended changes will be made and then a public hearing to consider the approval of the budget and rate ordinance will be scheduled during December. Manager Holzmeister noted several things:a) The budget proposes a 75 cent per month water rate increase and no electric rate change;b) Proposition 218 may eliminate the District's use of standby charges-about$250,000 per year, $3.20 per month per customer, c) The facilities fee issue is still unresolved. The major budget items (fixed expenses) and transfers from electric operations to capital were reviewed. After the special business item set for 7:30, department heads will describe their budget 1997 budget programs. SPECIAL BUSINESS - DISCUSSION WITH VARIOUS AGENCIES (SIERRA COLLEGE, TRUCKEE UNIFIED SCHOOL DISTRICT, TOWN OF TRUCKEE, TRUCKEE DONNER RECREATION AND PARK DISTRICT) REGARDING POSSIBLE DEVELOPMENT OF AN EDUCATIONAL AND RECREATION COMPLEX ON THE MC GLASHAN SPRINGS PROPERTY „ After reading that Sierra College was considering using three acres of land on Tahoe Truckee School District property for a "permanent"campus and hearing that the school district is looking towards building a new middle school, James Maass determined that there may be an opportunity 11/20/96 Page 1 to create a partnership in Truckee among educational, recreational and public utility institutions. He invited various representatives to attend this meeting and participate in a public discussion of the possibility of using land owned by the TDPUD to construct a multi-party education and recreation complex. Vince Deveney of the Tahoe Truckee Unified School District, Lou Fellows from Sierra College, Tony Lashbrook and Steve Wright from the Town of Truckee and Steve Randall from the Truckee Donner Recreation and Park District were present. Together with the Board and other members of the audience formulated ideas, comments and questions which are attached for reference. To begin the project, an advisory or ad hoc committee with leaders from each agency should be formed to come up with a plan or strategy and then the District would go through the process of declaring the property surplus. The PUD Board appeared interested in pursuing the idea and will place the matter on an agenda for serious consideration. It was agreed that the Board will have to weigh the use of the land, its value and whether it should be marketed. A review, assessment and analysis of the parcel in terms of benefit to the community, District customers and future electric revenues generated would need to be conducted. DISCUSSION OF THE DRAFT 1997 BUDGET The General Manager introduced the draft 1997 budget by giving an overview of its contents. He described the significant fixed costs, the proposed water rate increase of seventy-five cents, and the unchanged electric rates. He also described the possible impact of Proposition 218 on standby charges. The Department heads then made brief presentations on their departmental budgets. The Directors asked several questions. The proposed water rate increase was discussed along with the District's COP obligation to maintain a debt coverage ratio of 1.1. The Board asked staff to schedule public hearings on the budget and water rate increase. DISCUSSION OF BUDGET RELATED ITEM- SIX INCH METER RATE This matter was postponed because staff had not yet completed its analysis. MONTHLY STAFF REPORTS The monthly staff reports were reviewed. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 11:20 PM. TRU E Dr;7PU IC UTIL4TY DISTRICT JAV8.tod He g, Presi ent Susan M. Craig, Deputy District C k smc 11/20/96 Page 2 IDEAS, COMMENTS AND QUESTIONS � RELATING TO THE POSSIBLE DEVELOPMENT OF AN EDUCATIONAL AND RECREATION COMPLEX ON THE MC GLASHAN SPRING PROPERTY November 20, 1996 Tahoe Truckee Unified School District- 1) Mr. Deveney thought the school board would be excited about the possibilities of this joint venture. 2) It's logical to link the high school and college. 3) The immediate need is for another elementary school. 4) If a new high school or middle school is built, the old building or buildings could be remodeled into an elementary school. 5) Currently there is zero money for any building. It will be 1998 before a bond measure will be on the ballot. The public has indicated their support. 6) if a bond measure passes, the architect would take up most of the year to prepare plans it would probably be three years away from breaking ground. Sierra College - 1) They are fully behind the idea. 2) A bond measure would be necessary - it usually takes five years to get funding. 3) There's a possibility of collaborating with Sacramento State University, they have access to different funds. 3) The college is planning to get involved with "distance learning."4) They probably wouldn't be involved in athletics but would be involved with physical education. 5) They are already providing college classes to high school students. 6) They are used to working with other entities. Truckee Donner Recreation and Park District- 1) Truckee is experiencing large growth and the recreation district is always looking for new facilities. 2) They have previously partnered with the school district with good results. 3) Mr. Randall didn't think funding would be an issue for this kind of project. 4) Location isn't the most important thing and, in the near future, Tahoe Donner will probably be one of the biggest sources of mitigation funds. 5) Who will be responsible for the infrastructure? 6) What about transportation? Town of Truckee - 1) Expansion is necessary, the question is how will this land use fit into the general plan? 2) The town has a floating school site in the Tahoe Donner area - the McGlashan property has the potential to fit that purpose. 3) A school on this property could meet need and reduce bus transportation in Tahoe Donner. Pat Sutton- 1) Twenty years ago there was talk by the TDPUD Board about making this particular parcel available to any college that was interested. Recently she talked to someone from Sierra College and recommended they talk with the PUD manager if they were interested in doing something other than what was proposed between the middle and high schools. She would like to see something from the college standpoint being developed at McGlashan Springs. The town might be interested in the site for a civic center rather than building downtown. The land is still heavily forested- she's concerned about how many trees would have to be removed-maybe ball fields would not be appropriate. This needs quite a bit of thought as to what should be built on the land. Sierra College did utilize the property for an astronomy laboratory trailer at one time. The idea is certainly worth exploring. Could the property be used for educational experimental forestry? Would a school be able to be built on leased land? A member of the audience mentioned fire safe access and the fact that there would need to be two �.. routes to and from the property. Tahoe Donner is harvesting timber on their property to the east and south -maybe ingress and egress could be over this land. Tahoe Donner should be included in the discussions. smc �•. BUDGET WORKSHOP 1 . You have a DRAFT budget 2 . Two documents-work order details and summary 3 . No electric rate change 75 cents per month water rate increase 4 . Prop 218 may end our use of standby charges, $250, 000 per year, $3 . 20 per month per customer. 5 . Facilities fee issue not yet resolved 6 . What do we want to accomplish tonight a. Understand the budget, answer questions b. Change the budget to meet Board' s desires C. Schedule public hearings on budget and rate ordinance in December 7 . Each department head will take a few minutes to describe his\her budget program for 1997 . MAJOR BUDGET ITEMS Electric Water Total Operating Expenses $7, 964, 777 $3, 509, 880 Purchased Power 4, 971, 235 452, 400 Debt Service 483, 141 1, 263, 378 Labor 1, 233, 995 889, 022 Benefits 397, 544 286, 407 Insurance 154, 949 90, 223 Postage 31, 542 13, 518 Fuels 103, 113 103, 113 Subtotal 7, 375, 519 3, 098, 061 Remaining Expenses 589, 258 411, 819 Percent of Expenses 7 .3% 11 .70 f ELECTRIC BUDGET TRANSFERS FROM OPERATIONS TO CAPITAL YEAR AMOUNT 1994 $ 59, 648 1995 206, 397 1996 370, 900 1997 959, 948 BOARD OF DIRECTORS 1 . Total budget is $47, 843 in electric and $31, 593 in water for a total of $79, 436 . 2 . Director compensation is $24, 000 Medical and dental policy is $15, 782 NCPA is $13, 050 District counsel is $14, 000 Training is $8, 600 This totals $75, 432 GENERAL MANAGER 1 . Total electric budget is $220, 483 and water budget is $129, 262, for a total budget of $349, 745 . 2 . Dues and memberships is $15, 585 Salaries are $167, 271 Professional services a. Power supply development $20, 000 b. Electric rate study $20, 000 C. General counsel $35, 000 d. Sauers misc. $5, 000 e. Groundwater management plan $10, 000 r f. Electric restructuring issues $50, 000 This totals $322, 856