HomeMy WebLinkAbout1999-08-04 Min - Board .. ...................... ..... ...
REGULAR MEETING
August 4, 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 approximately7:08 PM in the District Board room by President Jones.
ROLL CALL: Directors Joe Aguera, Ron Hemig, Patricia Sutton and Bob Jones were present;
James Maass was absent.
EMPLOYEES PRESENT: Susan Craig, Steve Hollabaugh, Peter Holzmeister, Joe Horvath, Kathy
Neus, Bob Quinn and Ed Taylor.
CONSULTANTS PRESENT: Special Counsel Dennis DeCuir; District Engineer Keith Knibb; Marty
Skeer of RMI.
OTHERS PRESENT: Roger Terneuzen.
PUBLIC INPUT: There was no public input.
Director Sutton moved, and Director Aguera seconded, that the Board change the order of the
agenda and move to Items 14 and 15. All Directors, aye, by voice vote. SO MOVED.
CONFERENCE WITH LEGAL COUNSEL—Anticipated litigation pursuant to subdivision
(b)(2) of Section 54956.9 (one case), to determine whether a closed session is authorized
pursuant to Section 54956.9(b)(1)
CONFERENCE WITH LEGAL COUNSEL—Anticipated litigation—significant exposure to
litigation pursuant to subdivision (b) of Section 54956.9 (one case)
The Board adjourned to closed session at 7:09 PM.
RETURN TO OPEN SESSION
The Board returned to open session at 8:05 PM. No action resulted from closed session.
Counsel DeCuir, substituting for General Counsel, advised that closed session was called
pursuant to subsection (b) of Government Code section 54956.9 due to threatened litigation in
one particular case. General Counsel prepared a confidential memo to the Directors concerning
this matter.
TELECOMMUNICATIONS BUSINESS PLAN PROCESS—REPORT ON STATUS OF PLAN AND
STATUS OF POLE ATTACHMENT LICENSE AGREEMENT BETWEEN THE DISTRICT AND USA
MEDIA—CONSIDERATION OF AUTHORIZING CONSTRUCTION OF A BACKBONE OPTICAL
FIBER NETWORK — CONSIDERATION OF CREATING THE POSITION OF DIRECTOR OF
TELECOMMUNICATIONS SERVICES
8/4/99 Page 1
Mr. Holzmeister reported that District representatives have been meeting with USA Media and
making progress regarding the pole attachment and joint venture agreements. They will be meeting
again soon.
Items 4 b) and c) were put over.
DISCUSSION OF THE STATUS OF NEGOTIATIONS WITH WILLIAMS COMMUNICATIONS;
POSSIBLE ACTION
At the July 26th special meeting, Marty Skeer described the arrangement being negotiated among
the District, town and Williams Communications for construction of a portion of a cross-country fiber
optic trunk line. The principles and framework of the arrangement for joint construction of a long
haul route fiber optic segment through Truckee was presented and discussed. A copy is attached
for reference.
After some discussion, Director Hemig moved that the Board approve the agreement with Williams
Communications for construction of a portion of a cross-country fiber optic trunk line subject to final
review by legal counsel. The motion was seconded by Director Aguera, ROLL CALL: Sutton, no;
Maass, absent; all other Directors, aye. SO MOVED,
Director Hemig moved, and Director Aguera seconded, that the Board direct staff to put the
agreement for sharing of future benefits with the Town of Truckee in final form and that the
document be brought back to the Board for approval. ROLL CALL: Sutton, no; Maass absent; all
other Directors, aye. SO MOVED.
CONSIDERATION OF CONSTRUCTING A WATER DISCHARGE PIPELINE FROM THE NEW
MARTIS VALLEY WELL TO THE DISTRICT'S DISTRIBUTION SYSTEM—CONSIDERATION OF
FUNDING — CONSIDERATION OF A PROPOSAL FROM SAUERS ENGINEERING TO
PERFORM ENGINEERING SERVICES
The Board approved drilling of a new well in the 1999 budget. A second phase to the well project,
planned for the 2000 capital improvement program, is the construction of a transmission pipeline
into the Gateway zone. An alignment for a segment of the transmission pipeline will be across the
golf course and in an area which is wet in the spring. If construction of this segment is done in the
fall, then minimal restoration will be required. It involves construction of approximately 3,600 feet
of pipeline. Keith Knibb has reviewed this alignment with a representative of Lahontan Water
Quality Control Board and they find it will not be in a wet lands area. Staff is requesting the approval
of funding for this construction at a cost of $400,000 from facilities fees.
Director Hemig moved, and Director Aguera seconded, that the Board approve the construction of
a portion of the Martis Valley Well Transmission Pipeline Project and the associated funding for this
project in the amount of $400,000 from facilities fees. ROLL CALL: Maass, absent; all other
Directors, aye. SO MOVED.
Director Hemig made the following motion subject to the test well proving positive: that the Board
approve the engineering services agreement with Sauers Engineering for service regarding the
Martis Valley Well Transmission Pipeline Project in the amount of $21,015 for the fixed fee tasks
as defined in Sauers'July 28, 1999 proposal. Further, the Board approved the engineering services
agreement with Sauers Engineering for service regarding the Martis Valley Well Transmission
Pipeline Project in the amount of $7,000 for the not-to-exceed tasks as defined in the Sauers'
proposal dated July 28, 1999. Director Aguera seconded the motion. ROLL CALL: Sutton, no;
Maass, absent; all other Directors, aye. SO MOVED.
8/4/99 Page 2
CONSIDERATION OF A REPORT ON ISSUES RELATED TO THE DISTRICT'S RELATIONSHIP
WITH SIERRA PACIFIC POWER COMPANY; POSSIBLE ACTION
It is a goal of the TDPUD to realize long-term transmission access in order to receive market rate
prices for energy delivered to its customers. The District has been working toward this goal for many
years. Power Supply Engineer Stephen Hollabaugh reviewed with the Board the FERC filings that
the District is currently involved with. A copy of his detailed memo is attached.
CONSIDERATION OF A REPORT ON BIDS RECEIVED FOR PURCHASE OF PADMOUNT
TRANSFORMERS; POSSIBLE AWARD OF A CONTRACT
Bids for padmount switchgear were opened and analyzed on August 3. District Engineer Joe
Horvath presented a summary of the bid information giving a description and showing the quantity
of switches required, vendor name, quoted price, delivery time and any noted exceptions to the
District's contract and/or specifications.
Director Hemig moved, and Director Aguera seconded, that the Board approve award of bids for
padmount switchgear as follows: Schedule A to Western States Electric for a unit price of
$10,833.88 and Schedule B to Western States Electric for a unit price of$11,599.64. ROLL CALL:
all Directors, aye. SO MOVED.
CONSIDERATION OF A REPORT FROM STAFF REGARDING Y21K PREPARATIONS
Administrative Services Manager Mary Chapman reported that the Administrative Services
Department is essentially complete in its efforts to verify that the District's business operations will
continue to operate smoothly in the year 2000 and beyond. OrCom has provided a letter of
assurance that they will fix any unforeseen software problems. CADP software is also Y2K
compliant.
In the Support Services Department, all building and vehicle related equipment has been checked
out and verified to be either Y2K compliant or is not date sensitive.
As of March 30, 1999, the electric systems were Y2K ready. The District is also conferring with
electricity generation and transmission organizations to stay apprised of the Y2K progress of the
regional electrical system.
All water system computer hardware, software and controller equipment have been tested for Y2K
compliance. Only one minor software problem was detected. Changes were made to the system
to address that problem.
CONSIDERATION OF A LETTER FROM MAYOR JOSH SUSMAN REGARDING FUNDING OF
A LAFCo STUDY
Copies of a letter from Mayor Susman asking that the TDPUD contribute $1,500 toward the cost
of a consultant to review the data collected during the local governance study process were
provided to the Board. The Manager felt the request was poorly timed and contained erroneous
assumptions. Copies of the Mayor's letter along with Mr. Holzmeister's notes on matters that should
be considered by the Board are attached.
It was noted that no action was taken by LAFCo to hire a consultant and no money is in the budget
to pay such a consultant.
8/4/99 Page 3
......................................
Director Aguera moved that the Board direct the Manager to write a response on behalf of the
Board setting forth the points in his memo of July 30, 1999. The motion was seconded by Director
Hemig, All Directors, aye, by voice vote. SO MOVED.
CONSIDERATION OF THE MINUTES OF JULY 7, 1999
Director Hemig moved, and Director Aguera seconded, that the minutes of July 7, 1999 be
approved as presented. All Directors, aye, by voice vote. SO MOVED.
TREASURER'S REPORT — APPROVAL OF THE MONTHLY REPORT — APPROVAL OF
DISBURSEMENTS
Director Hemig moved, and Director Aguera seconded, that the Board approve the monthly
Treasurer's report. All Directors, aye, by voice vote.
Director Aguera moved, and Director Hemig seconded, that the Board approve the disbursements.
ROLL CALL: Sutton, no; Maass, absent; all other Directors, aye. SO MOVED.
CLOSED SESSION — CONFERENCE WITH LEGAL COUNSEL — Existing litigation
(Subdivision (a)of Section 54956.9 of the Government Code). Name of case: Truckee Donner
PUD and SPPCo, FERC Docket Numbers ER-97-3779-000 and ER97-4462-000
Director Sutton declared herself in conflict and excused herself since Sutton Paving did some work
for SPPCo this season.
- Dennis DeCuir stated he would not be attending closed session and noted that when the Board
returns to public session any action or decisions will be noted in public session.
The Board adjourned to closed session at 9:37 PM.
RETURN TO OPEN SESSION
The Board returned to public session at 10:20 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 10:21 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By C 1 2
Robert A. Jor}cs, Prey dent �
Prepared bye r
Susan M. Craig, Deputy District Clerk
smc
8/4/99 Page 4
Williams Telecommunications and TDPUD
Joint Construction of Long Haul Route Segment Through Truckee
➢ Williams Communications seeks complete the Truckee segment of 96-fiber, long-haul Salt Lake City-to-
Sacramento backbone route. Statewide Negative Declaration filed with CPUC, currently under review.
➢ Underground conduit facilities, through which fiber is to be pulled, required to provide a high degree of
telecommunications service reliability.
AGREEMENT FRAMEWORK
➢ Conduit construction project is difficult and challenging one. TDPUD to facilitate conduit construction
planning and implementation on behalf of Williams, including establishment of a preferred route layout within
the Donner Pass Road-Glenshire Road corridor, and obtaining construction permits.
➢ In return for TDPUD's project participation, Williams to increase the size of planned conduit to accommodate
additional duct capacity, and install manholes, pull boxes and splice cases to accommodate installation of a
fiber optic backbone network within TDPUD's serving area.
➢ Ownership of 16 miles of two 2 inch diameter ducts and related outside plant to be transferred to the TDPUD.
➢ TDPUD's involvement in the project expected to result in significant cost savings and reduction in
implementation time on behalf of Williams. TDPUD to strive to maximize cost savings, attributable to the use
of available TDPUD right-of-way, reductions in permitting time and construction fees.
➢ Objective construction completion date is October 15, 1999; 60-day construction period is anticipated.
➢ City of Truckee agreeing to substantial reduction or waiver of fees to be paid by Williams, in consideration of
future potential benefits derived from conduit ownership.
➢ Williams responsible for financing entire project and making direct payments to subcontractors. Exceptions
are engineering planning and construction management necessary to maximize benefit to TDPUD and City.
PROJECT STATUS
➢ Signed letter of intent received from Williams. Letter under review by attorneys to fine-tune implementation
process. Activities being coordinated with City Manager and Engineer to establish final right of way.
➢ Engineering planning and coordination task requirements and budget established.
Field Data $ 5,700
Drawing Preparation 3,000
Permits 10,400
Field Construction Coordination 71,300
Total Estimate $90,400
RECOMMENDATIONS
➢ Approve Letter of Intent, subject to final attorney review, and direct preparation of Final Agreement.
➢ Direct staff to put agreement between TDPUD and City of Truckee for sharing of future benefits in final form.
➢ Approve budget for engineering planning and coordination for fast-track project.
TDPUD Staff Report
July 30, 1999
To: Board of Directors
F3 F
From: Stephen Hollabaugh - Power Supply Engineer` 14,
r t
Subject. Sierra Pacific Power Company-FERC Cases Status Report
Workshop item: Possible Action on Docket No: ER97-3593-001 and ER97-4462-001
AGENDA # 1
Background:
The District has had the long-term goal of realizing long term transmission access in
order to receive market rate prices for energy delivered to our customers. The District
has been working toward this goal for many many years. Below is a list of the FERC
filings that the District is currently involved with. l have included a short description of
each of these cases and will explain how each of these cases may affect the District.
• Docket No. 98-7023: Filed July 23, 1999: (MW/SA Filing): Nevada Power and Sierra
Pacific are proposing an iSA (independent System Administrator) as part of the
Nevada Restructuring effort. i am following this closely to make sure what are
proposed does not adversely effecting the District.
• Docket No. ER99-2339 and ER99-34-000: (Transmission Rate increase Filing):
Sierra has also filed a Transmission tariff rate change that adds the Alturas
transmission line into the revenue requirements and also included a transmission
plant refunctionalization to distribution. Truckee Donner PUD has filed an
intervention and protest of the revised transmission tariffs.
• Docket No. ER99-2332-000: "Generation Aggregation Tariff"(GAT) Filing: This
filing dovetails their Merger and Generation Divestiture that is a part of the merger
case. The District has also intervened.
• Docket No. ER99-34-000: (Merger Filing): On April 14,1999 FERC approved the
Order Approving the Merger of Sierra Pacific Power Co. and Nevada Power. The
Merger is conditioned upon divestiture of all generation owned by the companies
and upon joining an iSO within three years. The commission dismissed the
concerns expressed in the intervenors because:
Generation divestiture will moot any concerns regarding the Applicants'
analysis... As a result, we believe that the proposed merger would not adversely
affect competition, and we approve it, based on our understanding that the
Applicants will divest their generation as required by the Nevada Commission.
On May 17, 1999 Truckee filed a Petition to request Rehearing of the Merger Order
for the reasons stated below:
"The commission erred in relying on the future divestiture of applicant's
generating facilities as the sole basis for its conclusion that the Merger will not
adversely affect competition"
On June 10,1999 the FERC filed "Order Granting Rehearing for Further
Consideration"
On July 14, 1999 the FERC filed "Order Denying Rehearing" but FERC in this
Order did address our concerns what we rose in the rehearing request.
r On July 28, 1999 Sierra Pacific and Nevada Power completed their merger.
• Docket No. ER99-2-000: (Alturas Line Filing): The Alturas transmission line has
been energized. This allows us to serve our full load from Idaho per our settlement
at FERC with Sierra. The commercial rating for the Alturas line is in a battle at
FERC between some California utilities such as San Diego vs. Sierra Pacific and
BPA. The District has filed a vanilla intervention to protect our interest if this goes to
hearing at FERC. Currently since the Alturas line in energized, some of our
settlement issues are met allowing us to utilize the transmission required to serve
our load. FERC has set this matter to a settlement hearing. We are keeping up on
this subject.
• Docket Nos. ER97-3593-000 and ER97-4462-000. FERC also on April 14, 1999
approved the settlement agreement between Truckee Donner PUD and Sierra
Pacific.
In very simplified form, the settlement in the dockets identified provided that:
1. Truckee Donner would be limited to a very small amount of[official] import
capacity use until Alturas was energized, although the settlement on how that was in
fact priced gave Truckee Donner much of the benefit of the transaction.
2. Truckee Donner would be able to import enough off-system power to meet its full
load when the Alturas line was energized, on the theory that the addition of Alturas
at least solved the claimed problems of SPP until February 28, 2001, with the issue
as to what happened after that date to be postponed pending the results of the fRP
process to see whether there even was a real problem,
3. the PUCN IRP process for SPP's transmission additions would go forward, with an
obligation to complete it and report to FERC on the results,
4. if the IRP did not provide for sufficient import capacity to meet both SPP's and
TDPUD's needs for the period after February 28, 2001, any party could re-open the
existing docket and litigate the issue of allocation, or
5. if the IRP results did provide for sufficient import capacity for both SPP and
TDPUD, SPP would have to make one or more filings at FERC, by July 15, 1999, to
resolve any remaining issues about cost responsibility and/or allocation of import
capacity, and
6. SPP is also required to file by July 15, 1999 a network service agreement with
TDPUD that is consistent with the IRP and provides for TDPUD to get its requested
network service, subject to the outcome of the proceeding initiated by that filing.
The PUCN has filed an order(albeit later than provided for) that completes step 3.
On July 14, 1999 Sierra and Truckee filed a joint motion for deferral of the date to file a
new transmission agreement for TDPUD until August 16, 1999. (Steps 5 & 6)
On July 19, 1999 FERC accepts extension of time. (Steps 5 & 6)
........................ .. .
TDPUD Staff Report
July 30, 1999
To: Board of Directors
From: Peter L. Holzmeister
Subject: Letter from MayorJosh Susman
A ends # 14
Attached is a letter from Mayor Josh Susman asking that our District contribute $1,500 toward
the cost of a consultant to review the data collected during the local governance study process.
The request is poorly timed and contains erroneous assumptions. There are matters that I think
should be considered by the Board in reviewing this request.
1. I do not believe that Nevada County LAFCo performed any kind of need assessment for
an increased level of analysis related to Truckee governmental organization. That
assessment has been undertaken by the local Truckee agencies in the form of the draft
Truckee Governance Study. Until that study is complete it is inappropriate for the Town
or LAFCo to assume there is a need for further analysis.
2. The letter assumes that the local agencies have simply gathered data, when actually the
draft Truckee Governance Study goes much further. The letter states that the local
agencies, in preparation of the draft Truckee Governance Study "have made a small
step toward developing information". The local agency study gathers data, analyses it,
draws some conclusions, and makes some recommendations. Since the document is
still in draft stage, no one can make judgements about its adequacy. At this point in the
process it would be inappropriate to retain a consultant to review data.
3. The letter states that the LAFCo consultant would review the data collected by the local
agency study effort"and other information". What is the other information?
4. The letter states that the LAFCo consultant would "make recommendations". I am not
aware that the Commission has hired a consultant or determined the scope of work for
an analysis. The process is such that the draft study should be reviewed by local
agency elected boards and be submitted to the Truckee community for review and public
discussion before it is sent to LAFCo.
5. The letter states that LAFCo has already negotiated an arrangement with a consultant.
Since LAFCo is subject to the Brown Act, the selection process should be opened up to
any consultant that may have an interest in providing this service, and the scope of
services should be discussed in an open meeting. Everyone should know the identity of
the consultant and have a chance to review the qualifications and professional
experience of the successful consultant. This is the process routinely followed by the
special districts.
6. This memo is asking us to appropriate $1,500 to pay for a study a LAFCo consultant to
review the local study. Local agencies have already spent several hundred hours of
staff time representing significant cost preparing the draft study during the past year.
1 invite the Directors to discuss an appropriate response and give me some direction.
c
Town Council Denanment HetA
Joshua J Sbsman,Mayor Stephen L. Wright, Town Manager
J Dennis Cmtbb, Town Attorney
.3bert W.Drake l w TORN OP lc�� Thomas E. Covey.Public Works
Ronald J Florian Tony Lashbrook,Community Development
Donald C McCormack Jil(R Olsen,Administrative Services
Main Schneider Vicki C.Soderquist,Town Clerk
r't4° •...r•'
Daniel P. Wilkins, Town Engineer
' ' ,fir,
Jul 261999
y , to
Bob Jones w
President of the Board
Truckee-Donner Public Utility District
PO Box 309
Truckee CA 96161-0309
RE: Preliminary Study of Truckee Reorganization
Dear Bob:
Last year and again earlier this year, the Nevada County LAFCo identified the need and desire to see an
increased level of analysis occur in the Truckee area related to governmental organization and service
provision. As discussed previously, this analysis is not a thorough study of the possibilities, but only a
preliminary assessment to determine if a subsequent more detailed study could be expected to identify
opportunities for improvements. Because of funding constraints imposed by Nevada County, LAFCo was
not able to budget for this analysis. I am writing to you to ask if you would join the Town in contributing
$1,500, a small amount,to LAFCo for this purpose.
I believe that the missions of our respective agencies are the same--to provide the highest level of service
to our respective constituents in the most cost effective ways possible. In the past our agency managers
have made a small start towards developing information that could help to farther that goal. The Town
Council is hopeful that an independent consultant working through LAFCo will be able to take that and
other information to develop a series of recommendations that could take that earlier stop to an even
higher level.This small investment could produce a big return for our taxpayers.
Please give this some thought and let me know if you would be willing to join us. We are sending this
request to the Truckee Sanitary District, Truckee-Donner Recreation & Park District, Truckee-Donner
Public Utility District, and the Truckee Fire Protection District, and would appreciate an early reply in
order to take advantage of earliest cost estimates negotiated between LAFCo and the consultant. I think
the suggested review would be of great benefit to all of our agencies.
Very truly yours,
s Susman�m
Cc: Town Council Members
LAFCo Executive Officer
Town Administrative Center
Phone: 530-582-7700 11570 Donner Pass Road, Truckee, CA 96161-4947 Far: 530-582-7710