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HomeMy WebLinkAbout1999-01-20 Min - Board REGULAR MEETING January 20, 1999 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 approximately 7:09 PM in the TDPUD Board Room by President Jones. ROLL CALL: Directors Joe Aguera, Ron Hemig, Bob Jones and Patricia Sutton were present. James Maass was expected. EMPLOYEES PRESENT: Mary Chapman, Susan Craig, Steve Hollabaugh, Peter Hoizmeister and Ed Taylor. CONSULTANTS PRESENT: District Counsel, Steve Gross. OTHERS PRESENT: Marty Skeer of Resource Management International, Inc. PUBLIC INPUT There was no public input. CONSIDERATION OF A RESOLUTION STATING CONCERNS REGARDING THE NEGOTIATION OF THE TRUCKEE RIVER OPERATING AGREEMENT AND REQUESTING THAT THE STATE OF CALIFORNIA REFUSE TO SIGN THE AGREEMENT UNTIL THE REGION'S INTERESTS ARE PROPERLY ADDRESSED After review of the draft resolution, Director Sutton moved that the Board adopt Resolution No. 9901 stating concerns regarding negotiation of the Truckee River Operating Agreement and requesting that the State of California refuse to finalize the environmental documents and refuse to sign the agreement until the region's interests are properly addressed. Director Aguera seconded the motion. ROLL CALL: Aguera, Hemig, Sutton and Jones, aye; Maass, absent. SO RESOLVED. CONSIDERATION OF A CONTRACT CHANGE ORDER ON THE TELEMARK ROAD PIPELINE REPLACEMENT PROJECT Longo Construction completed the Telemark Place Pipeline Replacement project. It was accepted on October 21, 1998, but Contract Change Order No. 2 was not processed prior to project completion. it is a close-out change order accounting for the actual amount of materials and work completed. The actual amount of 1 1/z inch PE service line installed was 20 lineal feet less than the bid schedule amount. This amounts to a $980 savings for the District. Other items were consistent with the bid schedule. Director Sutton moved, and Director Hemig seconded, that the Board authorize Contract Change Order No. 2 for a decrease of $980 in the amount of the Telemark Place Pipeline Replacement Project contract with Longo Construction. All Directors, aye, by voice vote. SO MOVED. 1/20/99 Page 1 CONSIDERATION OF A PROPOSAL FROM RESOURCE MANAGEMENT INTERNATIONAL TO CONDUCT A STUDY OF THE FEASIBILITY OF THE DISTRICT CONSTRUCTING AND OPERATING A TELECOMMUNICATIONS SYSTEM The District wants to assess the possibilities of deploying an advanced telecommunications network throughout its serving area for the purpose of 1) improving the quality of telecommunication services on behalf of its constituents and increasing accessibility to the information superhighway throughout its service area; 2) managing internal operations more efficiently while delivering more competitive services to municipal constituents in an era of increasing deregulation; 3) controlling a strategic resource as a potential source of additional revenues. Marry Skeer of Resource management International submitted a proposal to assist the District in exploring telecommunication strategies and options and determining a concise and clear plan for TDPUD's course of action. RMI has the in-depth telecommunications industry experience and technical expertise to evaluate opportunities created through unrestricted telecommunications service integration, pursuant to the Telecommunications Act of 1996. RMI's proposal would provide: • A prioritized telecommunications development plan that establishes realistic intermediate goals while laying a foundation to pursue attractive market opportunities in the future. • An evaluation of potential telecommunications business opportunities that would generate revenues and offset the costs of TDPUD's internal telecommunications. • An assessment of the impact of current and future service requirements on network infrastructure construction, providing the information needed to optimize network deployment and ensuring effective utilization of vital telecommunications resources. • A determination of the value of the network as a basis for establishing business relationships and evaluating business opportunities. • A determination of the merits of prospective partnership agreements with telecommunications service providers for the purpose of sharing network construction and operating costs, if this appears to be viable. Director Maass arrived at this point in the meeting (approximately 7:50 PM). After discussion, Director Hemig moved that the Board approve the proposal submitted by Resource Management International, Inc. with a cost not to exceed $43,200 and with deletion of the confidentiality/protected interest clause. ROLL CALL: Aguera, Hemig, Maass and Jones, aye; Sutton, abstain. SO MOVED. PURCHASE POWER CONTRACT BETWEEN THE DISTRICT AND IDAHO POWER COMPANY —CONSIDERATION OF A STATUS REPORT—CONSIDERATION OF A REQUEST OF IDAHO POWER COMPANY THAT A THREE-YEAR TERM OF THE CONTRACT BE ESTABLISHED In 1998 the purchased power costs were somewhat higher than the amount forecast in the fall of 1997. The original forecast predicted that the District would be buying its full load from Idaho Power for the entire year. We were only able to buy our full requirement from Idaho for seven of the 12 months. There were high summer prices and volatility in the market. The District's strategy was to 120/99 Page 2 buy at market prices as opposed to above market prices that Sierra charged in the past. We met our objective of buying at market prices, but the prices were higher than the forecast. The District has entered into a contract for the 1999 calendar year with Idaho Power that fixes the power cost at$25.75 per MWh for all hours during the year. This price includes a $2.25 adder that is in our current contract. This contract gives the District some insurance against high prices and price volatility that are expected in the market during 1999. This price for power is just under the forecasted costs that are budgeted for 1999. The fixed price forecasts savings of about 1.8% under the budgeted 1999 costs. Idaho Power and the District entered into a power supply agreement in June of 1997, The agreement originally contemplated supplying the full requirements of the District's electrical load for a three-year period and Idaho Power's costs were based on such deliveries. Several things have occurred since we entered into the agreement. Given these changes, it may be appropriate to bring the power supply agreement in line with our actual operations and the expected operations under the terms of the FERC settlement agreement. In July of 1997, Idaho Power began making partial load requirement deliveries at Midpoint Substation and continued to make such deliveries to the extent that Sierra Pacific made transmission service available, or Idaho Power made deliveries into the Sierra Pacific system at the Valmy Switchyard, the alternate point of delivery, to the extent that Idaho Power was dispatching its share of the Valmy power plant. Idaho is suggesting the current power supply agreement be amended to bring it into conformity with our current and expected operations. Counsel has reviewed the amendment and found it to be in order. Director Maass moved, and Director Aguera seconded, that the Board approve the first amendment to the July 1, 1997 agreement for the sale and purchase of firm capacity and energy between the District and Idaho Power. ROLL CALL: all Directors, aye. SO MOVED. CONSIDERATION OF A REPORT REGARDING THE PERFORMANCE OF THE GENERAL MANAGER DURING 1998 AND GOALS FOR 1999 Mr. Holzmeister provided a report on things he worked on during 1998 and what he proposes to work on during 1999. Director Hemig moved that a public hearing to discuss a compensation adjustment in the amount of 3% be scheduled; seconded by Director Maass. All Directors, aye, by voice vote. SO MOVED. DISCUSSION OF WATER SYSTEM SUPPLY PROJECTS, CURRENT SYSTEM CAPACITY LIMITATIONS, GLENSHIRE DRIVE WELL, PROPOSED NEW MARTIS VALLEY WELL AND TRUCKEE FALLS GOLF COURSE PROJECT Water Superintendent Taylor presented a water system overview covering supply, usage and storage for Tahoe Donner, Northside, Prosser and Sierra Meadows. He discussed water utility industry standards, the proposed Glenshire Drive well and Martis Valley well as well as the proposal for water service to Truckee Falls Golf Course. MONTHLY STAFF REPORTS There were no comments or questions about the monthly staff reports. Copies are attached. 1/20199 Page 3 r '' CONSIDERATION AND POSSIBLE APPROVAL OF THE MINUTES OF DECEMBER 2 AND 16, 1998 Director Hemig moved, and Director Sutton seconded, that the minutes of December 2 and December 16, 1998 be approved as corrected. All Directors, aye, by voice vote. SO MOVED. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 10:12 PM. TRUCF,EE DONNER PUBLIC UTILITY DISTRICT Robert A. Jones, ent ! Prepared bji Susan M. Craig, Deputy District Clerk smc x;. 1f20199 Page 4