HomeMy WebLinkAbout2000-10-11 Min - Board SPECIAL MEETING
October 11, 2000
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 perpetu-
ally and made available for listening to any interested party upon their request.
The special meeting of the Board of Directors of the Truckee Donner Public Utility District was
called to order at 7:03 PM in the TDPUD Board room by President Hemig.
ROLL CALL: Directors Joe Aguera, James Maass, Patricia Sutton, Nelson VanGundy and Ron
Hemig were present.
EMPLOYEES PRESENT: Alan Harry, Peter Holzmeister, Stephen Hollabaugh, Neil Kaufman
and Ian Fitzgerald.
CONSULTANTS PRESENT: Counsel Steve Gross; representatives from Vectren Communica-
tions Services.
OTHERS PRESENT: Among those present in the audience were Mary Davis, Joseph Ferrerra
and Roger Terneuzen.
PUBLIC INPUT
There was no public input.
CONSIDERATION OF BROADBAND (TELECOMMUNICATIONS) BUSINESS PLAN; POS-
SIBLE ACTION — DISCUSSION OF THE EXPANDED SERVICES VALIDATION STUDY
PREPARED BY Vectren COMMUNICATIONS SERVICES — POSSIBLE ACCEPTANCE OF
THE STUDY FOR PURPOSES OF SUBMISSION TO NEVADA COUNTY LAFCo
Representatives from Vectren Communications, the telecommunications company that con-
ducted the expanded services validation study, were present in the audience to present their
findings. The study was conducted to validate the District's first survey on its telecommunica-
tions business plan done earlier in the year by Navigant. The study does validate the Navigant
study. A copy of Vectren's presentation is attached to these minutes.
The Vectren study proposes a risk mitigation procedure and it also recommends that the District
offer competitive local exchange carrier service. The report brings all of the possible digital ser-
vices together in one package. It includes the recommendation that the plan include local tele-
phone services in addition to a platform for numerous Internet service providers, cable television
and point-to-point data services, which are already a part of the business plan.
Vectren has proposed a partnership with the District that would help mitigate financial risk to the
District. Vectren and its insurance company, AON Risk Services, has given a preliminary
agreement to underwrite the project's capital expenses. This will allow the TDPUD to issue a
certain amount of bond money with the guarantee of bond repayment should the District decide
to exit the telecommunications business within five years.
- The full-service network Vectren is proposing has an estimated cost of$14 million.
10/11/00 Page 1
Concern was voiced by one of the Directors about a governmental agency entering into a busi-
ness that would be in direct competition with private business. It was also expressed that Vec-
tren went beyond what the Board authorized the company to do.
Roger Terneuzen, manager of USA Media, read a statement to the Board about his concerns
relating to the District's telecommunications business ventures and details included in the Vec-
tren study. A copy is attached to these minutes for reference. Mr. Terneuzen asked that the
Board postpone any decisions or actions regarding this proposal until after upcoming elections,
as the makeup of the Board may change.
After discussion, motion was made and seconded, that the Board approve the Vectren Ex-
panded Services Validation Study and direct staff to submit the study to the Nevada County Lo-
cal Agency Formation Commission as an addendum to the District's application to activate la-
tent power to provide telecommunication and other forms of communication. ROLL CALL: all
Directors, aye. SO MOVED.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at approximately
8:40 PM.
JCKEE DONNER PUBLIC UTILITY DISTRICT
Ja s A. , ident
Prepared bMaassPry - 6=,-
Susan M. Craig, Deputy District Clerk
smc
10/11/00 Page 2