HomeMy WebLinkAbout2013-04-03 Min - Board REGULAR MEETING
April 3, 2013
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 acting President Laliotis.
ROLL CALL: Directors Bob Ellis, Ron Hemig, and Tony Laliotis were present. Directors Joe
Aguera and Jeff Bender were absent.
PLEDGE OF ALLEGIANCE
Director Ellis led the Board and public in the Pledge of Allegiance.
EMPLOYEES PRESENT Ian Fitzgerald, Peter Rosales, Bob Mescher, Stephen Hollabaugh,
Steven Poncelet, Neil Kaufman, Kim Harris, Michael Holley and Barbara Cahill
CONSULTANTS PRESENT Nick Brandis and Nicki Tallman
OTHERS PRESENT Juanita Schneider
k CHANGES TO THE AGENDA
General Manager Holley stated there were no changes to the agenda.
PUBLIC INPUT
There was no public input.
DIRECTOR UPDATE
There were no Director updates.
CONSENT CALENDAR
President Laliotis requested agenda item #9, Consideration of the Award of a Contract for Survey
Services, be removed from the Consent Calendar.
CONSIDERATION OF THE AWARD OF A CONTRACT FOR THE PURCHASE OF LED
HOLIDAY LIGHTS This item involves the annual purchase of LED Holiday Lights.
CONSIDERATION OF THE AWARD OF A CONTRACT TO PERFORM GEOTECHNICAL
TESTING SERVICES This item involves the award of a contract to perform geotechnical
testing services for the 2013 construction season.
1 Minutes: April 3, 2013
CONSIDERATION OF AN INTERCONNECTION (INTERTIE) AGREEMENT WITH THE
PLACER COUNTY WATER AGENCY (PCWA) This item involves an Interconnection
(Intertie) Agreement between TDPUD and PCWA.
CONSIDERATION OF FINANCING OR PAYMENT FOR MAINTENANCE WORK OF THE
PAYSON/NEBO NATURAL GAS GENERATION This item concerns approving financing or
payment for maintenance and repair work of the Payson/Nebo Natural Gas Generation
facility.
CONSIDERATION TO PROVIDE A SCADA COMMUNICATIONS LINK This item involves a
membership with TIPS/TAPS to access a vendor for installation of microwave equipment
to extend SCADA services.
Director Hemig moved, and Director Ellis seconded, that the Board approve the consent
calendar. ROLL CALL: Directors Aguera and Bender, absent; All other Directors aye, by voice
vote. SO MOVED
ACTION ITEMS
CONSIDERATION OF THE AWARD OF A CONTRACT FOR SURVEY SERVICES This item
involves awarding a contract for survey work related to water line replacement.
Director Ellis moved, and Director Hemig seconded, that the Board award a contract for surveying
to MAPCA in an amount of $33,000 plus a 10 percent change order allowance for a total not ex-
ceed $36,300. ROLL CALL: Directors Aguera and Bender, absent; All other Directors aye, by
c
voice vote. SO MOVED
CONSIDERATION OF AWARDING A CONTRACT FOR THE 2013 WATER PIPELINE
REPLACEMENT PROJECT This item involves awarding a contract for the 2013 Water
Pipeline Replacement Project.
Director Hemig moved, and Director Ellis seconded, that the Board award the District Pipeline
Replacement — 2013 to A&K Earthmovers in the amount of $489,714.22 plus a 10 percent
change order allowance for a total amount not to exceed $538,700. ROLL CALL: Directors
Aguera and Bender, absent; All other Directors aye, by voice vote. SO MOVED
WORKSHOPS
DISCUSSION OF A PROPOSED REFINANCING OF THE SPECIAL TAX BONDS FOR
COMMUNITY FACILITIES DISTRICT NO. 03-1 (OLD GREENWOOD CFD) This item involves
discussion of a proposed refinancing of the Old Greenwood CFD.
Bob Mescher gave a presentation
• 2003 — District issued Special Tax Bonds ("2003 Bonds") for the Old Greenwood Commu-
nity Facilities District (CFD)
o Issued to construct and acquire various public improvements
o Land-secured and non-rated
o Current obligation is $11.8 million
o Amortized over 20 years, through September 2033
o Rates range from 4.80% in 2013 to 6.10% in 2033
2 Minutes: April 3, 2013
o Paid by property owners in the CFD via property tax roll
o Callable on September 1, 2013 at par (no penalty)
o 179 Parcels
• Brandis Tallman LLC
o Full service investment banking firm and broker/dealer providing underwriting and
placement agent services for public agencies throughout California, including the Dis-
trict's 2011 Side Fund refinancing
o Contacted District and proposed refinancing the CFD's 2003 Bonds based on current
market conditions
• Market Conditions
o Interest rates have declined since 2003
o Property in CFD has developed since 2003 providing more security for bondholders
o Recent land sale activity in CFD
• Property owners in the CFD save on bond payment
0 2003 Bond average annual payment is $1,030,000
0 Proposed 2013 Bond average annual payment is $900,000
— Annual savings of$130,000
o Savings will facilitate further development in the CFD, and provide total economic
benefit of about $2.5 million over the 20-year term of the bond
• No cost to Truckee Donner PUD; cost of issuance funded by 2013 Bond proceeds
• Next Steps
0 04/05 Finance Team kick-off conference call
0 06/05 Present financial documents for Board approval
0 06/07 Publish Public Offering Statement
` 0 06/20 Sell 2013 Bonds to public (individual and institutional investors)
0 07/02 Close transaction & deposit proceeds with Trustee
0 08/01 Send call notices for the 2003 Bonds
0 09/01 Call the 2003 Bonds
• Board directed staff to pursue the proposed 2003 Bond refinancing
There was no public input.
Board discussion:
• What was the sale of land- was it a bigger property? Did one entity buy all the land from
another?
• How does this change for the new bond financing? If A buys B, what is the difference?
• What did the new owner Northlight acquire in Old Greenwood?
• Was it just vacant lots?
• How does this sale strengthen the bond refinancing?
• We could not have done this refinancing until a callable event. Bonds had to be callable
before they could be refinanced, correct?
• So there is a reason we cannot do this refinancing for the other development.
• How do the savings get allocated to property owners- what are the criteria?
• Why do the larger undeveloped parcels get an advantage over the developed parcels?
• Small property owners will not see a cost reduction initially.
• Is this rate method a standard for a Mello Roos?
• Initially there was a 30 year bond, now this one will be 20 years.
• 14% net savings overall.
3 Minutes: April 3, 2013
• Cannot see why the District would not want to pursue this- good savings overall.
f • Wish there was a level cost reduction for all property owners- savings to single family will
come in time.
• How does the refinancing affect our reserve requirements?
• Board directed staff to proceed with the bond refinancing.
DISCUSSION REGARDING THE NEW DISTRICT WEBSITE AND SOCIAL MEDIA TOOLS
This item involves the new District website, Facebook/Twitter, and conservation kiosk
Steven Poncelet gave a presentation:
• Last major work on District's website was in 2007
o District's communications and outreach have increased
o New programs and services
o Customer interactions with District has increased
o Website is a major tool
o Evolution of Social Media (Facebook/Twitter)
o New communication and outreach technologies
• Opportunity to improve communications and customer service
o Board awarded contract to Vision Internet in June, 2012
o Staff work on Facebook, Twitter, and conservation digital kiosk on-going
• District is launching new website and social media tools
o Promoting improved communications and customer service to our customers and
stakeholders
o Inviting customers to connect with the District on the web, Facebook/Twitter, and
Conservation Department digital kiosk
o Soliciting feedback and ways to improve District's communications and customer
service
• District Website www.tdpud.org
o Based on Vision Internet's content management system
■ Serving over 500 public and government agencies
o Standard features include
■ Calendar/Events
■ English/Spanish (and other languages)
■ ADA compliance for government websites
■ Integration with Facebook/Twitter
■ 'One click' feedback and user-friendly search/help
■ Easy to update
o Website design influenced by customer focus groups
■ 'I Want To', 'Rebates', '2nd Home Page', 'Forms', 'Pay a Bill'
o Quick access to information, improved customer service, more effective use of District
resources
• District social media tools
o Facebook (facebook.com/TDPUD) and Twitter (@tdpud)
o Interactive communication tools
■ Disseminate new interesting/important information
■ Promote District sponsored meetings, events, and programs
■ Refer followers to District website
o Use of social media for outages and other communications is being investigated
o Web and social medial policies and procedures
4 Minutes: April 3, 2013
® Guidance to Staff
® Consistency in our communications
® Protect the District
® Costs for the new website, conservation kiosk, and social media were included in the
approved FY12-13 budgets
o Ongoing expenditures are not expected to be significant and will be included in future
budgets
® There are no fiscal impacts associated with this workshop item
There was no public input.
Board discussion:
® Can customers complete forms on line and submit? Or do they have to print the form and
submit?
® Under "I want to"—will a person be able to open an account on line?
® Really cool
® Have used the new site- takes time to find where things are now.
® Very interactive.
ROUTINE BUSINESS
TREASURER'S REPORT
Approval of the fund balances as of February 28, 2013: Director Hemig moved, and Director
Ellis seconded, that the Board approve the treasurer's report for the month ended February 28,
2013. ROLL CALL: Directors Aguera and Bender, absent; All other Directors aye, by voice vote.
SO MOVED
Approval of disbursements for March 2013 Director Ellis moved, and Director Hemig
seconded, that the Board approve the March disbursements report. ROLL CALL: Directors Agu-
era and Bender, absent; All other Directors aye, by voice vote. SO MOVED
APPROVAL OF MINUTES FOR MARCH 6, 2012
Director Ellis moved, and Director Hemig seconded, that the Board approve the minutes of March
6, 2012. ROLL CALL: Directors Aguera and Bender, absent; All other Directors aye, by voice
vote. SO MOVED
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 6:53 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Tony Laliotis, Acting President
Prepared by
Barbara Cahill, 0—ep�uty District Clerk
5 Minutes: April 3, 2013
Resolution No. 2013 - 05 r
Resolution Authorizing and a .provinga repayment y
the Truckee Donner Public tiit District in respect of
Additional Bonds to be issue b Utah Associated
Municipal Power Systems pursuantto the Payson Power
roject P wer Sales Contract; and related matters®
Whereas, Truckee Donner Public Utility District (the "Member") is a member of Utah
Associated Municipal Power Systems("UAMPS")and has previously entered into the Payson
Power Project Power Sales Contract dated as of December 1, 2009, as amended and
supplemented (the "Power Sales Contract")with UAMPS providing for the purchase and sale
of an entitlement share in the output of the Payson Power Project (the "Project"); and
Whereas, the Power Sales Contract provides that the Member may make a Prepayment to
UAMPS prior to the issuance of any Additional Bonds to finance the Cost of the Project,
thereby reducing the Debt Service Costs that would otherwise be payable by the Member
(capitalized terms used and not defined in this Resolution shall have the meanings assigned
to them in the Power Sales Contract); and
Whereas, UAMPS has proposed to issue its Payson Power Project Revenue Bonds, Series
2013A and Series 2013B, in order to finance various work and improvements at the Payson
Power Project during major maintenance outages at the Payson Power Project (the "Series
2013 Project"); and
Whereas, any Prepayment made by the Member will be deposited with Zions First National
Bank, as trustee appointed under the Financing Documents (the "Trustee"), will be held in a
special account and will be used solely for the payment of the Cost of the Series 2013 Project;
and
Whereas, UAMPS has requested that the Member now elect whether or not to make a
Prepayment, and the Member now desires to elect to make a Prepayment in accordance with
the provisions of the Power Sales Contract in the amount authorized by this Resolution;
Now, Therefore, Be It resolved by the Governing Body of Truckee Donner Public Utility
District, as follows:
Section 1. Approval and Authorization of Prepayment. (a)The Member hereby elects
to make a Prepayment in an amount equal to $262,524 which is less than or equal to the
product of (i) its Entitlement Share and (ii) the Reference Project Costs (estimated to be
approximately $262,524) in accordance with the terms and provisions of the Power Sales
Contract. Pursuant to the Power Sales Contract, it is hereby found and determined that
amounts used to make such Prepayment are derived from retained earnings of the
1 Resolution 2013-05
Participant's electric enterprise fund, unexpended proceeds of borrowings previously made by
the Participant for electric system purposes or other legally available moneys of the
Participant, including legally available funds now on deposit in the Member's margin account
with UAMPS. The Member's representative to UAMPS is hereby authorized and directed to
determine the source of the moneys to be used to make the Prepayment from the sources
authorized by this Resolution at such time as shall be directed by UAMPS. It is hereby found
and determined that the Participant has deposited or will deposit with the Trustee an amount
equal to the estimated amount of the Prepayment to be made by the Participant, all in
accordance with the Prepayment escrow instructions provided or to be provided by UAMPS.
Section 2. Miscellaneous; Effective Date. (a) This Resolution is adopted pursuant to
the Interlocal Cooperation Act.
(b) This Resolution shall be and remain irrepealable until the expiration or
termination of the Power Sales Contract in accordance with its terms.
(c) All previous acts and resolutions in conflictwith this resolution orany part hereof
are hereby repealed to the extent of such conflict.
(d) In case any provision in this Resolution shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.
t (e) This Resolution shall take effect immediately upon its adoption and approval.
Adopted and approved this third day of April 2013.
AYES: Directors Ellis, Hemig and Laliotis
NOES: None
ABSTAIN: None
ABSENT: Directors Aguera and Bender
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Tony Laliotis, President
AM EST:
f,
Michael D. Holley, P.E. Clerk of the Board
2 Resolution 2013-05
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Ufah Associated Municipal 11owerSystems ® a
March 27, 2013
Re: Payson Power Project Revenue Bonds
Series 2013A and Series 2013B
To the Payson Power Project Participants:
As discussed in recent meetings of the Project Management Committee (the "PMC"),
UAMPS is considering issuing the above-referenced bonds (collectively, the "Series 2013
Bonds") to provide financing for the costs of planned maintenance work and improvements (the
"Series 2013 Project") at the Payson Power Project during the 2013, 2014 and 2015 planned
maintenance outages. It is expected that the PMC and the Board of Directors will consider
approving the issuance of the Series 2013 Bonds at its April meetings. This letter provides you
with information regarding decisions that individual Participants will need to make in order to
move this financing forward.
PREPAYMENT NOTICE
The Series 2013 Project consists of various work and improvements at the Payson Power
Project during the 2013, 2014 and 2015 major maintenance outages at the Payson Power Project.
As discussed in the March meetings, UAMPS expects the Series 2013 Bonds will be sold
pursuant to a direct purchase transaction.
Under Section 4 of the Payson Power Project Power Sales Contracts, you have the option
of making a capital contribution to UAMPS for your share of the costs of the Series 2013 Project
(a "Prepayment"). Your Prepayment amount may be equal to or less than your Entitlement
Share in the Payson Power Project multiplied by the "Reference Project Costs." For purposes of
this notice, we have estimated the Reference Project Costs to be $7,140,000. The Schedule of
Prepayment Amounts attached to this letter lists the Participants in the Payson Power Project,
their Entitlement Shares, the estimated Reference Project Costs and the estimated amount of the
maximum Prepayment that each Participant can make.
2825 East Cottonwood Parkway,Suite 200,
Salt Lake City,Utah 84121-7077
P:801-566-3938 Toll-Free:800-872-5961
Payson Prepayment notice March 2013 F:801-561-2687
87005105/CJ/BCP www.uamps.com
If you elect to make a Prepayment, UAMPS will not issue Series 2013 Bonds to finance
your share of the Reference Project Costs to the extent of the Prepayment. You will need to
deposit the Prepayment prior to the time UAMPS sells the Series 2013 Bonds to the direct
purchaser. Our current schedule calls for the sale of the Bonds in early May. Presently UAMPS
expects all Prepayments will need to be deposited by the end of April.
The Power Sales Contract provides that the determination of whether to make a
Prepayment is to be made by your city council or other governing body. If you expect that your
city council or governing body will want to authorize a Prepayment,please contact me as soon as
possible and I will provide you with a form of the necessary resolution.
We have enclosed a short response form (Annex A) for your use to advise us of whether
or not you will be malting a Prepayment. Please complete and return the form to me at your
earliest convenience, but in any event no later than April 11, 2013. If you are electing to matte a
Prepayment, you must also return to me, by this date, an executed copy of the approving
resolution adopted by your governing body. If we do not receive a response from you by this
date, you will have waived your right to make a Prepayment. If your city council or governing
body needs additional time to determine whether or not to make a Prepayment, please let me
know and we will matte every effort to accommodate your needs.
As always, please don't hesitate to contact me at any time with any questions or concerns
you may have.
Best Regards,
UTAH ASSOCIATED MUNICIPAL POWER SYSTEMS
By J. t
Manager of Customer Services
-2 -
SCHEDULE OF PREPAYMENT AMOUNTS
BASED ON REFERENCE PROJECT COSTS OF$7,140,000
PARTICIPANT ENTITLEMENT SHARE PREPAYMENT AMOUNT
Ephraim 0.9777% $ 69,808
Fairview 0.0786 5,612
Hurricane 8.4036 600,017
Hyrum 2.0455 146,049
Kaysville 16.3287 1,165,869
Lehi 15.3316 1,094,676
Logan 12.9223 922,652
Monroe 0.4518 32,259
f, Mt. Pleasant 0.3614 25,804
Payson 8.0702 576,212
Santa Clara 1.9599 139,937
Spring City 0.0812 5,798
Springville 18.0723 1,290,362
SEED 5.5152 393,785
TDPUD 3.6768 262,524
Washington 5.7232 408,636
TOTAL 100.0000 7 140 000
SCHEDULEI
l
ANN,x A
Jackie Coombs
Customer Service Administrator
Utah Associated Municipal Power Systems
155 North 400 West, Suite 480
Salt Lake City, Utah 84103
Re: Payson Power Project—Prepayment Notice
Dear Jackie:
In response to your letter of March 27, please be advised that
Truckee ee Donner Public Utility District
[name of Participant]
�_Ft will make a Prepayment in the amount of $ 262 , 524 - The
approving resolution, adopted by our governing body, accompanies this
Prepayment Notice(or will be sent to you no later dean April 15, 2013).
u�
will not Crake a Prepayment.
Dated: April 3, 2013
Sincerely,
UAMPS Representative , Stephen Hollabaugh
A-1