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Home My WebLink About2014-02-05 Min - BoardREGULAR MEETING February 5, 2014 In accordance with District Code Section 2,08.010, the TDPUD minutes are action only minutes. All Board meetings are recorded on a digital format which is preserved in perpe- tuity 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 6:00 PM in the TDPUD Board room by President Laliotis. ROLL CALL: Directors Joe Aguera, Jeff Bender, Bob Ellis, Ron Hemig, and Tony Laliotis were present. PLEDGE OF ALLEGIANCE Director Ellis led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT Kim Harris, Bob Mescher, Brian Wright, Neil Kaufman, Stephen Hol- labaugh, Ian Fitzgerald, Bob Mescher, and Barbara Cahill CONSULTANTS PRESENT none OTHERS PRESENT Juanita Schneider CHANGES TO THE AGENDA General Manager Holley stated there were no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Bender said he heard a report on NPR about PG&E's Metcalf Substation and physical security. Director Bender would like the District to look into this and see how it would apply to us. President Laliotis wanted to thank Director Ellis stepping in as President at the last meeting when he was ill. On Monday, February 3, Steven Poncelet and he went to CMUA capital day in Sacra- mento. It was an excellent event. We started off the morning with breakfast with the NCPA with a briefing from NCPA members and Kip Liper, Senator Steiberg's top energy advisor. Then we at- tended the CMUA program which had a great list of speakers which included Senators Hill, De leon and Jackson, Assemblyman Quirk, Secretary of Natural Resources John Laird and Senior Advisor to the Governor Cliff Rechtschaffen. The big focus was the drought with a lot of energy discussions as well. CMUA and Plumas Sierra joined us as we went on to the Capital visits with Senator Dahle's chief of staff Sherry Frei and one of Senator Gaines staffers. We also visited with staffers from the California Energy Commission regarding the public access charging stations and some grant money that is out there. At the CMUA reception, we spoke with Assemblyman Dahle and others. He wanted to reiterate going to this event and talking to high level staffer and elected officials, it is very clear that the public power industry and how we jointly and collaboratively get together and do things is very well respected by the state and legislators. It reinforces the value of all our partnerships with the other public power agencies. 1 Minutes: February 5, 2014 ACTION ITEMS CONSIDERATION OF FY13 YEAR-END FINANCIAL RESULTS AND ROUTINE TRANSFERS This item involves the comparison of the actual year-end financial results to the FY13 Budget; and consideration of routine transfers. Director Hemig moved, and Director Ellis seconded, that the Board authorize the following transfers: a) Transfer $697,701 from the Electric Facilities Fees to the Electric General Fund b) Transfer $969,000 from the Electric General Fund to the Electric Capital Replacement Re- serve c) Transfer $409,990 from the Water Facilities Fees to the Water General Fund d) Transfer $231,000 from the Water Capital Replacement Reserve to the Water General Fund ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF THE PURCHASE OF AVOICE-OVER-IP PHONE SYSTEM This item the purchase of a VOIP phone system to replace existing aging technology. Director Ellis moved, and Director Aguera seconded, that the Board authorize the General Man- ager to enter into a contract with World Wide Technology for Cisco VOIP phone system for an amount not to exceed $108,482. ROLL CALL: All Directors aye, by voice vote. SO MOVED WOKSHOPS DISCUSSION OF THE DISTRICT PIPELINE REPLACEMENT — 2014 PROJECT This item involves a discussion regarding the 2014 Water Pipeline Replacement Project. Neil Kauffman gave a presentation. • The Water Department has a need to replace existing pipelines in two categories: o Pipes in poor condition requiring repeated repairs o Pipes that are old, undersized (typically 4-inch diameter and smaller) and have ex. ceeded their useful life • Board workshop on the planned 2014 project held in September 2013 • Project scope has been finalized o Boca Street o Sierra Drive o Sanders Well yard piping o State Route 89 South o Lakeview Court o Rainbow Drive o Snowshoe Circle o Whitetail Lane o Johnson Lane (additive alternate) o Willow Street service laterals & meter boxes (additive alternate) • Awaiting issuance of Caltrans encroachment permit before advertising • Temporary above ground piping needed for Biltz Tract and Lakeview Court • Two public meetings held: o Biltz Tract residents o Johnson Lane residents • Third meeting planned for Lakeview Court residents 2 Minutes: February 5, 2014 • Current project schedule o Advertising for Bids — February 2014 o Bid Opening — End of March 2014 o Bid Award — Beginning of April 2014 o Begin Construction — May 1, 2014 o Complete Construction — October 2014 • Outside consultants o Environmental services: ■ Proposal received from Inland Ecosystems o Geotechnical testing: ■ Holdredge & Kull selected through RFP process in 2013 ■ Proposal for 2014 has been requested o Surveying: ■ New RFP to be issued • Fiscal Impact o Water Department is estimating $1,000,000 for the construction contract ■ Bid documents will include additive alternate to provide flexibility o Cost for outside consultants estimated at $80,000 There was no public input. Board discussion: • No comment • Well informed r . So the consulting will be about $80,000 and the pipeline work 1 million • No questions • Johnson Lane and Willow Street are alternatives • Good to get more pipeline in the ground as needed DISCUSSION OF 2013 PURCHASE POWER LOAD, RESOURCES, PEAKS, AND COMPARISON TO 2013 BUDGET FORECAST This will involves a summary of 2013 Purchase Power including load, resources, peak and comparison of budget forecast to actual. Steven Hollabaugh gave a presentation. • Purchase Power Plan was approved on November 16, 2011 • FY 12&13 Budget included "Purchase Power Plan" o Mission statement and objectives o Renewable Portfolio Standard (RPS) target o Conservation as first resource o Diversified power supply plan o Future renewable resources o Proposed resources for 2013 o Risk analysis and 2013 forecast 3 Minutes: February 5, 2014 • FY13 Purchase Power Plan included: Cost Component and Description Cost/Budget $ per MWh Total Energy Supply- Various $10,737,570 $65.84 Transmission Wheeling - SPPC Scheduling- NCPA Central Valley Project - WAPA $1,081,033 $73,226 $ - 28,012 Totals $11,863,817 • 2013 Plan was based on a forecast of 163,082 MWh • Summary budget vs. actual FY13 Description Budget Total Energy Cost $11;8637817 Total Energy Consumption, MWh 163,082 Cost per MWh $72.75 • Energy cost: 1.8% less than budget • Energy consumption: 3.0% less than forecast • RPS compliance periods and targets: o 2011 thru 2013; 20% of retail sales o 2014 thru 2016; 25% of retail sales o 2017 thru 2020; 33% of retail sales • 2013 Actual RPS Eligible Renewables (CPUC) % Sales Small Hydro 3.2% Landfill Gas 15.3% Wind 25.2% Totals 43.8% • Detailed budgeted vs. actual amounts for FY13 Power Purchases, MWh Budget Total Energy Purchase, MWh Total Power Purchase Cost $ $ Over/(Under) Budget Purchase Cost per MWh Peak Load Information District Peak Load, MW There was no public input. 163,082 $6.63 $0,45 Actual $111647, 321 158,149 $73.65 Actual 158,149 Variance 11,863,817 $ 11,647,321 -1.8% $ (216,496) $72.75 $73.65 1.2 Budget Actual 36.0 34.3 -4.8% L� Minutes: February 5, 2014 Board discussion: • What are your thoughts on natural gas? • Has there been any update with MUFA (Municipal Utility Financier Authority) about a natu- ral gas purchase? • How has the wind power been producing at Horse Butte since they have been on line for two years? • Renewables are now at 43.8%. • Thank -you for the great report. The data is excellent. • Great job forecasting -nailed it. ROUTINE BUSINESS TREASURER'S REPORT: JANUARY,31, 2014 APPROVAL OF THE FUND BALANCES AS OF DECEMBER 31, 2013: Director Bender moved, and Director Ellis seconded, that the Board approve the treasurer's report for the month ended December 31, 2013. ROLL CALL: All Directors, aye. SO MOVED. APPROVAL OF DISBURSEMENTS FOR JANUARY 2014 Director Aguera moved, and Director Hemig seconded, that the Board approve the January 2014 disbursements report. ROLL CALL: All Directors, aye. SO MOVED. APPROVAL OF MINUTES FOR JANUARY 15, 2014 Director Bender moved, and Director Ellis seconded, that the Board approve the minutes of January 15, 2014. ROLL CALL: Director Laliotis, abstained; All other Directors, aye. SO MOVED CLOSED SESSION CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957 (E), PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GENERAL MANAGER'S PERFORMANCE PLAN REVIEW CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957.6, CONFERENCE WITH LABOR NEGOTIATORS, DISTRICT DESIGNATED REPRESENTATIVES: JEFF BENDER AND RON HEMIG; UNREPRESENTED EMPLOYEE: GENERAL MANAGER Report from Closed Session No reportable action ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 8:07 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Tony Laliotis, Presi�nt Prepared by Barbara Cahill, Deputy District Clerk 5 Minutes: February 5, 2014