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HomeMy WebLinkAbout1999-08-18 Min - Board SPECIAL MEETING x� August 18, 1999 The special meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at 4:12 PM in the TDPUD Board Room by President Jones. ROLL CALL: Directors Bob Jones, Ron Hemig, James Maass were present. Director Joe Aguera was expected and Patricia Sutton was absent. EMPLOYEES PRESENT: Mary Chapman, Steve Hollabaugh, Peter Holzmeister, Joe Horvath, Kathy Neus, Bob Quinn, Ed Taylor and Scott Terrell. CONSULTANTS PRESENT: Consulting Engineer Keith Knibb and District Counsel Steve Gross. OTHERS PRESENT: Bob Rauch, facilitator for the strategic planning workshop. PUBLIC INPUT It was noted that while the agenda states that public input will be received at 7:00 PM, the intent was to have input at this time. Should anyone wish to give input at 7:00, they will be duly recognized. There was no public input. DISCUSSION OF THE DISTRICT'S STRATEGIC PLAN Bob Rauch led the Board, staff and consultants in a discussion of the District's strategic plan. Director Aguera arrived during this discussion. The Board recessed at 5:55 PM and reconvened at 7:00 PM for the purpose of accepting public comment. There was no public present in the audience. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 7:01 PM. TRUCK DON R PUBLIC UTII trY DISTRICT Robert A. Jones yPre, ident Prepared by Susan M. Craig, Deputy District Clerk smc 8/18/99 Page 1 STRATEGIC PLAN FOR TRUCKEE DONNER PUBLIC UTILITY DISTRICT April 1, 1999 1. INTRODUCTION In preparing a Strategic Plan for Truckee Donner Public Utility District it is important to take a look at the large society in which we live. We need to have a basic sound concept of what that large society is like, and how it is changing. Many researchers document the basic components of our present society, and futurists comment on trends that help us perceive social trends. This section of the strategic plan attempts to set out an overview of the larger society in which Truckee Donner PUD operates. It describes the changes that are occurring in society, and opines that Truckee is a reflection of larger society_ The world is changing and Truckee is changing with it. a) At a recent California Municipal Utilities Association conference, Steve PonTel, President of La Jolla Institute described the choices that communities have. He says there will be smart communities and ghost towns. The smart communities will recognize that the new economy is based on knowledge, it has a global perspective, and it is networked. Connectivity and quality will matter to citizens of smart communities_ Ghost towns will ignore society's trends, and will fail to meet the needs of it citizens_ r b) Society is getting older; more retired persons are living in Truckee. Family units are smaller than in the past. Truckee is becoming more affluent. Our customers are able to afford and expect to purchase consumer products that permit them to earn a living and make their lives more convenient. c) Society is becoming more and more electronically connected. More homes and businesses are routinely using the Internet. Communications technologies such as cell phones, fax machines, computers, and pagers are becoming interconnected. Their presence is now ubiquitous in our society. New technologies are being introduced at an increasingly rapid pace. d) Telecommuting technologies are allowing more people to work from their homes. This is changing the way homes are being built and the technological services that homeowners will want delivered to their homes. e) California's population will be increasingly comprised of foreign-born persons, primarily Asiatic and Hispanic. Women in California will continue to play an increasing leadership role in business and society. f) The population of Truckee is growing at a rate of approximately 2.5 percent per year. This growth is expected to continue for the foreseeable future_ This growth will add approximately 300 new homes per year to our customer base, and commercial growth will continue at a comparable pace. .................... .... ,. 2. CLARIFY THE BUSINESS WE ARE IN AND OUR MISSION An important exercise in strategic planning is to clarify for ourselves and for our employees what business we are in. A mission statement can be a powerful presentation of our purpose in the community, and define the values we embrace in the conduct of business. This Strategic Plan recognizes that Truckee Donner PUD is actively involved in three distinct business efforts, and suggests that we should consider becoming involved in one additional business effort_ Our three current business units are: Water supply and distribution Electric distribution Electric power supply (aggregation) The new business unit suggested for further strategic evaluation fiber optic wire service. The mission statements for the District as a whole and the current business units is as follows: a. The District mission is to be valued by our customers as a local agency with a long term service record, committed to the well-being of the Truckee community, bringing innovation, competence and trustworthiness in the delivery_ of water and electric services. b. The water business unit mission is to provide moderately priced, high quality potable water, delivered at the pressure and quantity sufficient to meet the needs of residences and businesses in the Truckee Donner PUD service territory. c. The electric distribution business unit mission is to provide low cost and reliable delivery of electric energy, at voltages sufficient to meet the needs of the residences and businesses in the Truckee Donner PUD service territory. d. The mission of the electric power supply business unit is to be the aggregator of choice for every residence and business located in the Truckee Donner PUD service territory, contracting for delivery of low cost electric energy and capacity in sufficient quantity to meet the needs of our customers. The mission statement for fiber optics service, should the District choose to enter that business at the conclusion of further study, could be as follows: e. The mission of the fiber optics business unit is to provide fiber optic infrastructure to every residence and business in the Truckee Donner PUD service territory and sphere of influence for use by third party service providers, thus enhancing the opportunity for the Truckee community to benefit from the convergence of the computer, telecommunications, entertainment and electric industries. 3. ASSESSMENT OF THE BUSINESS ENVIRONMENT The Strategic Plan has described the Large society in which we operate and has looked at some trends to help us understand how that society may be changing. The Strategic Plan has stated clearly the business we are in and the District's mission. The plan now needs to evaluate the specific business environment in which we operate. This description differs from the societal description in Section 1, That Section took a very broad look at society. This Section will describe a more specific set of business factors that relate to the water and electric industry. This Section will describe institutions, industry trends and competitors that need to be strategically handled for our District to succeed in fulfilling its mission. a. Water industry business environment: The water industry is highly regulated, and we expect more regulations from the Federal and State governments intended to insure a safe drinking water supply. We will be required to monitor our water supply for more contaminants in the future, and report to our customers on the quality of their drinking water. It is probable that groundwater may need to be treated for removal of arsenic and other contaminants in the future. There is some indication that federal water regulators may turn their attention to groundwater contaminants. Groundwater supplies experience far less bacterial contamination, but may experience greater viral contamination, This may lead to regulations mandating filtration of groundwater in the future. Customers are becoming increasingly aware of water quality issues. They demand pure, safe, taste-free water. Inexpensive in-home water treatment systems are being marketed to them. In a recent telephone survey conducted by our District a small number of our customers responded that they drink bottled water. The water served by our District to most of our customers is disinfected by use of chlorine, which has an objectionable odor and taste if not done properly. We may soon be required by State law to add fluoride to our water as a way to promote dental health. This program is likely to be controversial. Our access to a water supply will be greatly regulated in the future. Our water supply will also be subject to quantity limits. The Truckee River Operating Agreement (TROA), which will probably be signed within the next two years, will regulate the development of future wells, and the quantity of water that can be diverted and depleted from the Truckee River Basin. TROA will require us to be active in regional water issues. The quality of the water in the groundwater basin is critical to our ability to keep water costs low. We will need to actively promote a groundwater management program, probably in conjunction with other users of the basin. Growth in customer base will require water system expansions. As the existing system ages we will need to replace various components. The expansion and replacement of the water system facilities is costly, and will require a funding plan that minimizes the impact on our general water rates. We will need to constantly update our water master plan and have a clear strategy for financing. Growth in our customer base will provide us with increasing annual revenues from sale of water. Growth will also provide funds to expand our water system infrastructure_ District staff is preparing a white paper analyzing the basic assumptions in our design of water system infrastructure. New technologies are appearing which may offer opportunities for us to design our water system differently and save money. Changes in fire suppression technology may have an effect on our need to create fire flow infrastructure. Limitations on our water supply may require us to implement conservation measures in the future. The application of water for landscaping accounts for a major portion of our water use in a year. At some point it may be advisable to encourage low water use landscaping. Nevada and Placer County LAFCos are making decisions that may limit our District's future service territories. We will need to have a clear understanding of the future territory that our District is expected to serve. We need to have an internal policy regarding the territory that we prefer to serve, and a strategy for promoting our interests in that territory. Glenshire Mutual Water Company, Donner Lake Water Company and Placer County Water Agency's Lahontan system are small water purveyors that serve territory adjacent to our service territory and are in the District's sphere of influence. We currently have very little relationship with these entities. A more active and cooperative business relationship may be of interest to all parties. It appears that our water customers are using more water on the maximum day. During the past several years our system design planning was based on an average use per customer of 800 gallons on the maximum day. We design the size of our water system facilities to serve this maximum day demand. More recent water usage statistics suggest that our customers now use an average of 900 gallons on the maximum day_ We are finding that residences are increasingly having more fully developed landscaping Our average maximum day usage of 900 gallons per customer is still far below the 1,500 gallons experienced in other regions of California. Our average daily usage, averaged throughout the entire year is still 500 gallons per day. Our District provides facilities for use by the Truckee Fire Protection District in support of their suppression efforts. Our pumps, water storage tanks and water mains are sized to provide fire flow water. The Insurance Rating Office continues to increase the recommended amount of water that should be available for fire suppression, while the fire suppression service continues to rely less and less on water to extinguish fires. Fire retardant building materials, smoke and fire alarms that provide early fire detection, and chemical fire suppression technologies have reduced the reliance on water. Yet we continue to construct expensive water facilities. b. Electric industry business environment: The single biggest factor in our electric industry_ business environment is deregulation. Competition is replacing the traditional monopoly structure of the industry. The early effect of deregulation is confusion. As the groundrules of the new industry become clearer, our District will find that it is doing business with a new set of entities. We will find that we have a new relationship with our customers. Competition will eventually drive prices down and we will need to have competitive prices for the services we provide. The electric utility industry is merging with the natural gas, cable, telecommunications, and computer industries. Products and services are crossing lines. Industry commentators are suggesting that customers will want to take advantage of a new array of products and services that can be offered by an electric utility working in partnership with other energy service providers. In surveys that are being conducted, customers are expressing a consistent preference for how they want to be served. They want low price, reliable service, quick response to 4 outages, convenient business practices, and helpful customer service representatives. Customers currently find electric deregulation confusing, and are not favorably inclined to participate in electric deregulation. They may become more interested in it over time, if it is made easy for them and they can save money. Our relationship with Sierra Pacific Power Company(SPPCo) has been contentious for many years. Deregulation is giving us new opportunities to achieve independence from SPPCo control. We are continuing to experience resistance from SPPCo. but the trend is in our favor. We have a new relationship with Idaho Power Company, which will require us to have a continuing, long-term relationship with SPPCo, although not the relationship that SPPCo prefers. Truckee Donner PUD is a member of the Northern California Power Agency (NCPA). NCPA provides schedule coordination services for our District, and supports us with engineering and regulatory services. NCPA helps us through joint action to participate in industry matters that would be difficult for us to do alone. Agencies and associations near our borders are becoming interested in evaluating benefits of being involved in deregulation. They are contacting our District for advice and technical assistance. Growth in our electric service territory has been consistent for the past twenty years. We expect the growth to continue at a rate of about 2.5 percent for the next several years. This growth provides our District with increasing revenues from sale of electric services. The growth also provides funds for electric system infrastructure expansions. c. The fiber optics business environment: Fiber optics is a technology that offers vastly improved telephone, cable television, and data communications services at a low price. There may be an opportunity for Truckee Donner PUD to provide fiber optic infrastructure in the community thus encouraging other service providers to offer enhanced services. Weststar Communications, Inc. is being acquired by USA Media Group, Inc, and they are planning to install some kind of fiber service to cable television service. There may be a bigger role for fiber in Truckee. In order to determine the nature of the opportunity for fiber in Truckee would require a feasibility study_ d. The District's competitors effect our business plans: Since Truckee Donner PUT) is a public agency, we do not often think in terms of having competitors. Private enterprise businesses have competitors. Public agencies are usually thought of as promoting the public good, without being impacted by or imposing impacts on other entities. However, there are agencies that compete with us to serve our customers, and there are agencies that take actions that impair our ability to fulfill our mission. These agencies can be viewed as competitors_ In preparing a strategic plan it is useful to identify our competitors so we are not ignoring the effects their actions could have on us. By identifying them we are more likely to consider their potential impacts on us when we prepare our business strategies. I SPPCo is a competitor. SPPCo would benefit if our District went out of business and could then directly serve our customers. SPPCo has offered business deals to some of our larger customers in an effort to serve them directly. 2. Southwest Gas Company another competitor. Natural gas is an alternate fuel to electricity in space heating, water heating, cooking, and clothes drying. To the extent that Southwest Gas succeeds in serving our customers, our District looses revenues. 3_ Power marketers could become competitors in the future as the deregulated electric industry matures, and if our District provides for direct access. 4. Other water purveyors are competitors to the extent that they sell water to a service territory that we prefer to serve. Because water systems are capital intensive, a water system realizes economies of scale by serving a properly sized territory. To achieve these economies of scale and keep our water rates low, we may have a strategy to serve a certain geographic territory. Other water purveyors become, then, competitors. 5. The Town of Truckee is an agency whose actions could impact our ability to achieve our mission. The Town has raised the issue of reorganizing Truckee's special districts into town departments. The Town government would benefit by having utility revenues to support municipal functions_ 6. Nevada County and Placer County LAFCos are agencies that control our sphere of influence and our ability to amend our service territory. Their actions can, therefore, impact our ability to achieve our mission. Currently both LAFCos are shrinking our sphere of influence map. 7. Weststar Cable(USA Media) may be planning to install some amount of fiber optics technology. The first to install fiber may corner the market. There may be an opportunity to form an alliance with Weststar in the fiber business. 4. POSITION STATEMENT This Section of the Strategic Plan lists in outline form the strengths and weaknesses of the district. An inventory of organizational strengths will help identify resources that are available to accomplish strategic plans. It is important to have a clear picture of an organization's weaknesses when planning strategically so that the organization avoids the temptation to overreach. A listing of weaknesses helps the organization deal with anticipated problems. It forces the organization to address its weaknesses. a) TDPUD strengths: Long-term presence in the community Low electric rates Steady and predictable supply of monthly revenues Financial position is healthy Dedicated competent staff Lack of stranded investment Electric distribution system is becoming increasingly more reliable as we make system improvements Low cost wholesale power from Idaho Power Company Very low electric system debt Plentiful supply of high quality groundwater Customer demand for electric power is off peak in relation to the industry as a whole. b) TDPUD weaknesses: Moderate to high water rates Tahoe Donner water distribution system is failing High long tern water system debt Short annual construction season Severe winter weather takes a toll on infrastructure High demand for water on summer week-ends stresses water system capacity 5. ASSUMPTIONS ABOUT OUR INDUSTRY This Section of the Strategic Plan documents assumptions about trends in the water and electric industries, and trends in the Truckee community. Understand where an industry #; and a community are headed is important to strategic planning. a) Truckee will continue to grow at about 2.5 percent per year b) Truckee will become more affluent c) Truckee residential customers will want to use advanced communications technologies, will want to be electronically connected to the world bevond Truckee d) Truckee is small and as such may not attract private enterprise to install advanced communications infrastructure, such as fiber optics. e) Electric prices will come down after CTC expires in 2001 f) Residential and small commercial customers will have difficulty benefiting from deregulation without the help of an aggregator g) Control of electric utility billing, metering, and customer lists will be an advantage in the deregulated industry h) TDPUD will secure access to network integration transmission service i) The electric, natural gas, telecommunications, cable, and computer industries will merge, or at least overlap in more and more areas. j) Water prices will tend upward gradually k) Water usage for irrigation will continue to increase unless curbs are put in place 1) TDPUD will come under increasing water quality regulation, possibly even a requirement for more water treatment m) Small water purveyors in our area will have difficulty satisfying regulators and maintaining financial health n) Our District's independence will continue to be challenged by the Town of Truckee and LAFCo 6. GOALS: WHAT WE WILL TRY TO ACCOMPLISH This Section of the Strategic Plan sets forth goals for each business unit. The next section will specify how we intend to accomplish these goals. The goals are intended to give us advantage. Accomplishing our goals should help us fulfill our mission s a) Regarding the District in general: Build a positive name brand in the community Generate and use customer information Build an entrepreneurial organizational culture featuring innovation, customer focus, and quality service Provide our customers all the benefits of deregulation while avoiding its defects Participate in influencing the legislature and regulatory bodies regarding water and power issues Influence the policies of the Town of Truckee and the LAFCos in relation to governance issues b) Water supply and distribution: Maintain moderate water rates Have a water rate structure that is considered fair by our customers Provide water service at the service box that meets the expectations of our customers regarding pressure and quality_ Establish closer working relationships with neighboring water purveyors Establish a sphere of influence that permits our District to serve a territory based on reasonable infrastructure economies of scale and community of interest Protect our access to a plentiful supply of pure groundwater Evaluate criteria for maximum day usage and its impact on our investment in water system infrastructure (900 gpd, fire flow) Participate in regional associations involved in water management issues Evaluate the impact on our business of serving water to golf courses using untreated water, and using on-site wells c) Electric distribution business unit: Provide low-cost distribution service Provide reliable electric distribution service Provide quick restoration of power in the event of an outage d) Electric power supply business unit Secure low-cost wholesale power supply Secure access to Network Integration Transmission Service from SPPCo Rebuild an improved business relationship with SPPCo Retain all customers in our aggregation program e) Fiber optics business unit Evaluate the advisability of TDPUD entering the fiber optics business. 7. PRIORITY ISSUES CONFRONTING THE DISTRICT AND ACTION PLAN i Issue I. Survival of the District The first strategic issue addressed in this plan is the long-term survival of the District. There are factors in our business environment that threaten the District's very survival. Issue 1.1: LAFCOs • LAFCo is committed to promoting reorganizations and consolidations of Truckee's special districts. LAFCo has adopted the proposition that general purpose government (cities) is preferable to special purpose government. • LAFCo can Initiate consolidations or mergers or reorganizations and can establish terms and conditions affecting it (such as an election). • LAFCo has established the District's sphere of influence in Nevada County_ in a manner such that our service area is contiguous with that of the town. Action Plan: • Bring in a consultant who specializes in LAFCo issues to assist and advise the District in how to deal with the two local LAFCos and the state issues. • Seek to work with other agencies (for example, ACWA and CSDA) who are well informed about LAFCo. Issue 1.2: Plan to deal with consolidation issues • We should work in partnership with other districts • It is desirable for our District to remain multi-county. • The governance study prompted by LAFCo has been begun by the special districts and the town with the objective of providing more efficient services by working jointly. Work is incomplete. There are serious conflicts between the town and the districts. Action • Bring the governance study to a successful conclusion_ Use the LAFCo consultant to comment on the draft before it is widely disseminated. Issue 2-Electric and water systems Portions of the District's electric and water system infrastructure are in need of repair, replacement or expansion. This second strategic issue identifies specific high priority improvements that need to be addressed. Issue 2.1: Water delivery system The District is committed to providing high quality water in quantities and at pressures that meet the expectations of our customers. Appendix A of this Strategic Plan sets forth an action plan to improve the water system infrastructure. Issue 2.2. Electric system reliability Opinion surveys conducted locally and nationally demonstrate that customers expect a high degree of reliability from their electric utility. This Strategic Plan sets forth in Appendix B an action plan to improve the district's electric service reliability. Issue 2.3. Financial plan for water system improvement The plan to improve the water system infrastructure is aggressive and requires the commitment of significant financial resources. Appendix C of this Strategic Plan sets forth a forecast of financial requirements. Issue 3- Electric industry deregulation The three parts of the electric utility industry in California have been unbundled. The power generation function has been deregulated. The transmission function remains regulated, but has been transferred to an independent system operator to operate. The distribution function remains regulated at the local level_ This huge change in our industry has changed the District's relationship with key industry participants. Our success in the new electric utility industry depends on our ability to adapt to the new environment. This third strategic issue gives rise to a group of sub-issues that need to be addressed in our strategic plan. Issue 3.1: Define the District's role in a deregulated environment (1) We provide benefit to the community. Residential and small commercial customers will benefit from deregulation only if they aggregate. (2) New consumer services will cross the lines between electric power and telecommunications. Our District will make sure those new services are available in Truckee by providing necessary infrastructure. (3) We may need to grow beyond our current service territory to survive. That means redefining the community we wish to benefit. (4) The District will provide infrastructure for water, electric, and fiber optics. (5) Our District will offer energy services of some type, evaluated on a case-by- case basis. Most new energy and telecommunications services will be provided by other business entities. Action (1) Promote our electric power aggregation business (2) Conduct a study of the feasibility of providing fiber optic infrastructure to the Truckee community (3) Postpone evaluation of other electric and telecommunications consumer services until the year 2000. Issue 4- Plant and facilities Our current District vehicle parking and material storage space is inadequate. As the District operation continues to grow our problem will become acute_ This fourth strategic issue contains a number of sub-issues that need to be addressed in the strategic plan. Issue 4.1. Headquarters building (1)There is not enough conference room space to accommodate the meetings that take place in the building. (2) Parking is too limited. (3) Traffic on Donner Pass Road is increasingly congested (4) Second floor is too warm in the summer (5) There is not enough garage space to park rolling equipment (6) Auto mechanic space is too small Action The Town of Truckee needs to acquire their own building thus vacation space they use on the District's office building_ This should be done within five years. The second floor needs to be air-conditioned. Issue 4.2. Operations facilities (1) We need work space for water and line crews to do assembly of materials. (2) We need covered space for storage of transformers, wire, pipe, hydrants, and bulk materials. (3) We need space for a water and electric meter shop. (4) The current headquarters building site is too small to accommodate these needs Action Identify parcels that may be suitable for our needs Buy approximately ten acres of land for an operations facility. Get a consultant to prepare a facilities master plan Determine if this building is marketable Market a portion of the Southside property Talk with TSD, TTSA, Airport, Town of Truckee to determine if there is potential for joint action on certain functions, such as vehicle maintenance, storage of materials_ Issue 5: Technology The District makes use of a variety of computer and electronics based technologies to do its work. There is a need to make sure the technologies we have acquired are fully functional and are integrated where that is advantageous to the District. The fifth strategic issue concerns just this subject. Issue 5.L MIS manager (1) We need to improve our technology in areas where it no longer reflects the state of the art. (2) Current District staff does not have the knowledge to fully integrate and then continuously manage the technology applications that we now have. (3) Our current systems do not communicate with each other. (4) Water and electric geographic information systems need to be integrated. (5) Our SCADA systems, AS400, and internal network all need to talk to each other. We need to be moving to the position where other future technological systems are likewise integrated into the existing systems (meters, internet, web page, e-commerce) Action f t Internal staff committee will identify where we are, what we have, what are our needs, where we will be in three years. Steve Hollabaugh will be the team leader, Team members will be Mary Chapman, Ed Taylor, Joe Horvath, and Kathy Neus. Their report will be submitted to the General Manager by June 30, 1999 Issue 5.2: Need to get the District's existing technology systems operational Electric SCADA Water SCADA AutoCad UDS Action Joe Horvath will be responsible for getting the AutoCad and UDS operational. Bob Quinn, Joe Horvath and Steve Hollabaugh will be a team to get the electric SCADA fully operational. Ed Taylor will assess the need to upgrade the software driving the water SCADA and write a report on his recommendations. Issue 6- Metering The District's water and electric metering needs to be improved. Issue 6.1: Commercial water meters (1) Commercial water meters not 100% operational (2) Current technology relies on a remote readout, which is plagued by maintenance problems. Action The staff meter committee must choose a technology that lets us read commercial meters every month and be compatible with where we want to go in the future. This will be done during the third quarter of 1999. Issue 6.2: Electric meters (1) Residential and small commercial will be all converted to AMR by the end of 1999. (2) Need to convert a total of about 500 commercial network meters to AMR. (3) Need a plan to deal with the other commercial meters, based on the rules yet to be issued by CPUC. Action Complete installation of residential and small commercial AMR meters. Support Services department will accomplish this task. Convert network meters to AMR. Support Services Department will accomplish this with help from Vern Smith. z APPENDIX A TRANSMISSION AND DISTRIBUTION LINES REPLACEMENT SCHEDULE • TOTAL WATER MAIN PIPELINES FOR THE DISTRICT IS MILES • DESIGN LIFECYCLE REPLACEMENT FOR WATER MAINS IS NORMALLY -5 YEARS • THE LIFECYCLE REPLACEMENT SCHEDULE FOR WATER MAINS WOULD EQUAL 2,7 MILES PER YEAR OR AN AVERAGE OF F = PER YEAR. • PROPERLY INSTALLED DUCTILE IRON WATER MAINS COMMONLY WILL LAST 74, YEARS. • A REPLACEMENT SCHEDULE BASED ON THE EXTENDED USEFUL LIFE OF THE WATER MAINS WOULD BE AN EFFORT EQUAL TO 1. MILES PER YEAR OR '�',R _O 4 g, PER YEAR. • REPLACEMENT IN LAST z, YEARS = 25 MILES • REPLACEMENT NEEDS BASED ON MAINTENANCE RECORDS FOR THE NEXT FIVE YEARS = 6A5 MILES • REPLACEMENT NEEDS BASED ON MAINTENANCE RECORDS FOR YEARS FIVE THROUGH TEN = 8 MILES E PROPOSED PLAN YEARS ONE - FIVE PROJECT CATEGORY YEAR COST FUNDING 199 PUMP STATION - UPGRADE AND REBUILD $246,000 Restricted SUPPLY— MARTIS VALLEY WELL $750,000 Facility PIPELINE REPLACEMENT $160,000 Rates SCADA-UPGRADE $100,000 Facility 2000 PUMP STATION - REBUILD $52,000 Rates MARTIS VALLEY WELL PIPELINE $1,000,000 Facility SCADA-UPGRADE $50,000 Facility 2001 PUMP STATION - REBUILD $24,000 Rates PIPELINE REPLACEMENT $750,000 Rates , 2002 PIPELINE REPLACEMENT $750,000 Rates 2003 PIPELINE REPLACEMENT $250,000 Rates STORAGE — REPAIR AND PAINTING $500,000 Rates , . t PROPOSED PLAN YEARS FIVE - TEN f F PROJECT CATEGORY YEAR COST FUNDING 2004 STORAGE — NEW $600,000 Facility PIPELINE REPLACEMENT $150,000 Rates 2005 SUPPLY - PLACER WELL $750,000 Facility PIPELINE REPLACEMENT $100,000 Rates 200 PIPELINE REPLACEMENT $750,000 Rates 2007 PIPELINE REPLACEMENT $760,000 Rates —CITAL 2008 PIPELINE REPLACEMENT $750 000 Rates WATER SYSTEM PUMP FACILITIES -- STATIONS 1997 Planned Rated Type Year Station Name Capacity Rehab Cost F I Rehab. 1994 Martiswoods 100 REBUILT 1998 Stockholm 210 REBUILT 1998 Innsbruck 1,200 UPGRADE 1998 Armstrong 170 REBUILT 1998 Sierra Meadows 500 REBUILT 1998 Ski Run 100 REBUILT 1998 Herringbone NEW 1999 Ski Lodge 160 REBUILD $6,000 t 9 h.. ,r 4n Z- � 2,700 s , x, ,, ,; , o qq v _3 e fin( tra` :S Y "W " < � 3,000 � �� :_ �� � s 9c so"-, en-a. 3,000 U,P GRAE)E', 2001 Airport 2,700 REBUILD $18,000 2001 Alder Creek 600 REBUILD $6,000 HYDRO STATIONS 1995 Prosser Heights Annex 900 REBUILT Hydro 1997 Ponderosa Palisades Hydro 800 REBUILT 1998 Pinnacle Hydro 500 REBUILT 1998 Glenshire Drive Hydro 850 NEW 2000 Donner View Hydro 500 REBUILD $8,000 2000 Ponderosa Palisades West 40 REBUILD $8,000 Hydro 2000 Roundhill Hydro 500 REBUILD $8,000 2000 Sitzmark Hydra 600 REBUILD $8,000 APPENDIX B ELECTRIC OPERATIONS "VISIONS OF -1'HE FUTURE" SYSTEM RELIABILITY • The District's substations will be upgraded to enable total load transference from one station to another_ We are currently progressing toward this goal. ® Circuit ties and Loops will be constructed, switching devices installed, and lines reconductored to enable transferring load from and to any of the District's feeders. + SCADA will provide data and control all of the District's substations as well as field switches and reclosers. • IED's {intelligent electronic devices] will be in place throughout the system providing us with instantaneous data on outages. voltage, and other necessary information. The downtown area will have all underground facilities eliminating code violations, hazardous conditions, and overloaded lines and transformers_ This project is currently rogress.in p + Another circuit(s), and possibly substation, will be developed to supply power to TDPUD customers in the Glenshire area and the eastern portion of the District thereby eliminating our dependence on SPPCo. Facilities will be placed underground wherever possible to reduce the number of tree and weather related outages. AESTHETICS e Undergrounding of electric facilities wherever possible will be accomplished, improving property values as well as reliability. e Feeders out of substations will be under rounded allowing trees and shrubbery to be planted around the station's perimeter virtually camouflaging the station from the public's view. This will not only be aesthetically pleasing but also reduce vandalism and improve station reliability. OPERATIONS • SCADA will be fully operational eliminating extensive switching procedures during- routine and emergency operations. A mapping system (GIS) will be in-place capable of identifying field equipment,. number of customers on a transformer or circuit, exact location of underground facilities, loading at specific locations, and other kev information. Crews will be equipped with mobile computing systems allowing access to accurate, up-to-date information while at the field location, Crews will receive worts orders, mapping information, customer information, change orders, construction specifications; equipment information, and more via this technologv- Technical crews will assist other public utilities in operation and maintenance of specialized systems. Example_ substations, SCADA scstenis, meter audits and testing. r, 4 APPENDIX C TRUCKEE DONNER PUBLIC UTILITY 04/02/99 DISTRICT OPERATING CASH FLOW STATEMENT 1998 - 2007 WATER DEPARTMENT (1998 Financial Proj Water, xls) Budget: Projected: REVENUES: 1998 1999 2000 2001 2002 2003 2004 Residential Sales 27833,00 2,993,68 3,163,4903,342,92 3,532.53 3,732,89 3,867,28 (1)(10) 0 8 3 3 9 3 Commercial Sales 407,000 427,594 450,332 473,118 497,058 522,209 537,875 (2)(10) Interdepartmental 850 867 867 867 867 867 850 Sales (3)(10) Fire Protection Fee (1) 73,000 75,628 78.351 81,171 84,093 87,121 90,257 Misc Operating 17,000 17,000 17,000 17,000 17,000 17.000 Revenue (3) 17,000 Misc Rent (3) 900 900 900 900 900 900 900 Standby (4) 240,000 231,360 223,031 215,002 207,262 199,800 192,608 Transfer from Building 63,585 0 0 0 Fund (5) ® 0 0 Transfer from 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Restricted Funds (6) 3,735,33 3,847,03 4,033,9704,230,98 4,439,71 4,660,79 4,806,77 3 Interest Income (7) 123,000 110,000 110,000 110,000 110,000 110,000 110,000 Total Water Revenue 3,858,33 3,957,03 4,143,9704,340,98 4,549,71 4,770,79 4,916,77 3 OPERATING/MAINTENANCE EXPENSES: Board of Directors (8) 31,806 32,124 32,445 32,770 33,097 33,428 33,763 General Manager (8) 179,871 187,066 194,548 202,330 210,424 218,841 227,594 Administrative Services 2927371 301,142 310,176 319,482 329,066 338,938 349,106 (8) Planning Services (8) 41,674 42,924 44,212 45,538 46,904 48,312 49,761 Technical Services (8) 46,302 47,691 49,122 50,595 52,113 53,677 55,287 Water Operations: General 2181894 225,461 232,225 239,191 246,367 253;758 261,371 # Administration (8) Source (8) 85,976 88,555 91,212 93,948 96,767 99,670 102,660 Booster Pumps (8) 156,085 160,768 165,591 170,558 175,675 180,945 186,374 Services O 8 145,877 150,253 154,761 159,404 164,186 169,111 174,185 s Y k 2 Transmission & 409,634 421,923 434,581 447,618 461,047 474,878 489,124 Distribution(8) Pumping (8) 408,000 420,240 432,847 445,833 459,208 472,984 487,173 Hirschdale Water 6,072 6,254 System (8) 6,442 6,635 6,834 7,039 7,250 SCADA (8) 18,181 18,545 18,916 19,294 19,680 20,073 20,475 Water Quality (8) 70,218 73,027 75,948 78,986 82,145 85,431 88,848 Treatment Plant (8) 15,255 15,713 16,184 16,670 17,170 17,685 18,215 Interdepartmental Rent 163,505 165,958 168.447 170,974 173,538 176.141 178,783 (8) Debt Service: Water Truck (9) 7,480 0 0 0 0 0 Loader (9) 16,830 16,830 16,830 16,830 2,805 0 0 System 799,438 800,238 805,158 808,938 811,788 808,678 809,665 Improvements (9) Prop 55 (9) 305,918 305,918 305,918 305,918 305,918 305,918 305,918 Intrafund Loan (9) 34,000 34,000 17,000 0 0 0 Inter/Intrafund Loan 102,782 102,783 102,783 102,783 102,783 102,783 102,783 (9) Consumer Deposits 500 500 500 500 500 500 500 (9) Total Oper/Maint 3,556,66 3,617,91 3,67518453,734,79 3,798,01 3,868,79 3,948,83 Expenses � 9 2 5 5 0 6 Net Available for 301,666 339,125 468,125 606,187 751,699 902,006 967,937 Captial Estimated Capital (301,437 (300,000 (202,000) (774,000 (9001000 (900,000 (300,000 Requirements(11) } ) } ) ) Total Additional Revenue Needs 229 39,125 266,125 (167,813 (1487301 2,006 667.937 } } Cumulative Total 39,354 305,479 137,665 (10,636) (8,630) 659,308 Projected Rate 2.00% 2.00% 2.00% 2,00% 2.00% 0.00% Increase s F Truckee Donner Public Utility DistriCt Bard of Directors ioseDnR,Aguas J Roald Hemig 1530) 587-3896 Robert A,Jones FAX (530) 587-1189 James A. Maass Patlida S Sutton Geinerai Aellanage, Regular Meeting Peter L. Holzmea;(er 7:00 PM, Wednesday, August 18, 1999 TDPUD Board Room AGENDA 1. Call to order 2. Roll Call 3. Public Input- 7:00 PM (or as soon thereafter as possible). This is time set aside for the public to address the Board on any matter not on the agenda. Testimony related to any agendized matter should be addressed at the time that item is considered. PUBLIC HEARING - 7:00 PM (or as soon thereafter as possible) 4. Public hearing concerning the Negative Declaration for the Martis Valley Well Project WORKSHOP ITEMS 5. Continuation of discussion regarding the District's strategic plan ADJOURNMENT The agenda is available for review at the TDPUD office and the Truckee branch of the Nevada County Library Postedlnd mailed! on August 13, 1999 Susan M. Craig, Deputy DistriqtZlerk Post Office Brx 309 11570 Donner Pass Road Truckee, Californ;a 96160 REGULAR MEETING -. August 18, 1999 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at approximately 7:00 PM in the TDPUD Board Room by President Jones, ROLL CALL: Directors Joe Aguera, Ron Hemig, Bob Jones and James Maass were present. Director Patricia Sutton was absent. EMPLOYEES PRESENT: Mary Chapman, Steve Hollabaugh, Peter Holzmeister, Joe Horvath, Kathy Neus, Bob Quinn, Ed Taylor and Scott Terrell. CONSULTANTS PRESENT: Consulting Engineer Keith Knibb and District Counsel Steve Gross. OTHERS PRESENT: Bob Rauch, facilitator for the strategic planning workshop. PUBLIC INPUT There was no public input. PUBLIC HEARING CONCERNING THE NEGATIVE DECLARATION FOR THE MARTIS VALLEY WELL PROJECT Sauers Engineering has distributed the environmental documents to various local agencies and to the State Clearinghouse. The public review period closes on August 25, 1999. z' The public hearing was opened at 7:02 PM. There was no public input. CONTINUATION OF DISCUSSION REGARDING THE DISTRICT'S STRATEGIC PLAN Discussion of the District's strategic plan continued. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at approximately 9:45 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT { p r x Robert A. Jones`;President Prepared b Susan M. Craig, Deputy District Clerk smc j f 8/18/99 Page 1 {