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HomeMy WebLinkAbout2000-09-20 Min - Board REGULAR MEETING September 20, 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 regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at 7:07 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: Mary Chapman, Susan Craig, Ian Fitzgerald, Alan Harry, Steve Hol- labaugh, Peter Holzmeister, Neil Kaufman, Kathy Neus, Bob Quinn, Ed Taylor and Scott Terrell. CONSULTANTS PRESENT: Keith Knibb and Steve Gross. OTHERS PRESENT: Bob Rauch, Juanita Schneider, Dorothy Burden, Marjorie Adkerson, Eric Shafer, Dylan Shafer and David Lee. PUBLIC INPUT There was no public input. PUBLIC HEARING The public hearing to receive oral and written comments from members of the public regarding the District's intent to adopt an ordinance amending its conflict of interest code was opened at 7:11 PM. The Political Reform Act requires that the District biennially review its conflict of interest code. Two new positions have been created and filled within the past year, Director of Telecommuni- cations and GIS Coordinator. A draft of the amended code has been prepared by council. No one in the audience wished to comment; the Manager reported that no written input had been received on this item. The public hearing was closed by President Hemig at 7:13 PM. CONSIDERATION OF AN ORDINANCE AMENDING THE DISTRICT'S CONFLICT OF IN- TEREST CODE After brief discussion, Director Maass moved, and Director VanGundy seconded, that the Board adopt Ordinance No. 2000-02 amending the District's conflict of interest code. ROLL CALL: Aguera, Maass, Sutton, VanGundy and Hemig, aye. SO ORDAINED. CONSIDERATION OF A RESOLUTION APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF A POWER SALES CONTRACT WITH UTAH ASSOCIATED MUNICIPAL POWER SYSTEMS FOR THE RESOURCE 2000 PROJECT AND RELATED MATTERS Stephen Hollabaugh, District Power Supply Engineer/Assistant Manager, thoroughly discussed the power sales contract with UAMPS for the Resource 2000 Project and related matters. He also provided a staff report to the Board that fully covers these matter. A copy is attached to these minutes for reference. 9/20/00 Page 1 -- Mr. Hollabaugh noted that certain documents and information were made available for review to the Board and that summaries of the principal documents were provided by UAMPS and re- viewed by the Board. Stephen Hollabaugh stated that GDS Associates, Inc. and Energy Source LLC, engineers and consultants retained by UAMPS, prepared reports covering various engineering and economic matters regarding the Project. It was noted that UAMPS classified the Engineering Reports as "protected records," asserted a claim of business confidentiality with respect to the Engineering Reports and the information contained in them and had provided them to the District with the understanding that the Board would also classify the Engineering Reports as "protected rec- ords." The Engineering Reports include a detailed description of the physical assets included in the Project, together with discussions and analysis of: • The past and projected operating performance of the Project; • The operation and maintenance processes and procedures and maintenance expenditures at the Project; • The fuel supply used to operate the Project and the past and projected costs of the fuel supply; • The past and current staff of the Project; • Various environmental and regulatory matters regarding the Project; • The projected capital expenditures necessary for the continued operation of the Project and the remaining useful life of the Project; and • A comparison of the projected total costs of the Project and the projected market price of electrical energy in the western U. S. The Board of Directors discussed the principal conclusions set forth in the Engineering Reports and the summaries of the purchase and sale agreement and the transition agreement described in the Power Sales Contract. The Board then discussed with Mr. Hollabaugh the current requirements of the District for elec- tric power and energy, the power supply resources presently used to meet a portion of these requirements and the quantities of energy being purchased on the market to meet all of the Dis- trict's requirements. It was observed that the District will utilize its Entitlement Share in the elec- tric energy generated by the Project, acquired by the District pursuant to the Power Sales Con- tract, to meet the existing and reasonably anticipated requirements of the District for supplies of electric energy. The Board discussed factors affecting other power supply resources and the economies of scale that will be achieved by participating in the Project with other members of UAMPS. It was noted that the District's Entitlement Share will provide a long-term supply of electric energy at cost-based prices and reduce the District's need for electric power and energy from outside sources that could be subject to price escalation and volatility in future years. UAMPS has advised the District that the pro-forma projected Project cost estimates provided to the District gave UAMPS' best estimate of the projected costs of the Project and that UAMPS would not bid a purchase price for the Project that would materially and adversely affect these cost estimates. 9/20/00 Page 2 The form of the Power Sales Contract was then presented to the Board and the principal terms and provisions of the Power Sales Contract were discussed, the same having been previously reviewed in detail by officials of the District as well as District Council. It was observed that, un- der the Power Sales Contract, the District could lay-off any portion of the firm electric energy attributable to its Entitlement Share that may be surplus to the District's requirements during the initial years of the ownership of the Project and that UMPS agreed to use its best efforts to mar- ket any such surplus. The Board of Directors noted that the District will remain obligated to pay its share of the costs of the Project, but receive a credit for any revenues produced by the mar- keting of surplus energy by UAMPS under the lay-off provisions of the Power Sales Contract. Finally, the Board noted that, in the event that UAMPS was not successful in its efforts to ac- quire the Project, the District will be obligated to pay its share of the costs and expenses in- curred by UAMPS in its investigation of the Project that exceeded the amounts previously ap- propriated for that purpose by UAMPS. A draft resolution was then introduced to the Board. Director Maass moved, and Director Aguera seconded, that the Board adopt Resolution 2000-18 authorizing the execution and de- livery of the Resource 2000 Project Power Sales Contract with Utah Associated Municipal Power Systems in connection with the Resource 2000 Project of UAMPS and related matters. ROLL CALL: Directors Aguera, Maass, Sutton, VanGundy and Hemig, aye. SO RESOLVED. CONTINUATION OF DISCUSSION OF THE DISTRICT'S STRATEGIC PLAN Staff continued its strategic plan workshop facilitated by Bob Rauch. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 9:55 PM. TRUCK E DON R PUBLIC UTIL (STRICT J. Rodmig, resi n Bo rd of Dire t rs Prepared by Susan M. Craig, Deputy District Clerk smc 9/20/00 Page 3 SPECIAL MEETING September 20, 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 7:07 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: Mary Chapman, Susan Craig, Ian Fitzgerald, Alan Harry, Steve Hol- labaugh, Peter Holzmeister, Neil Kaufman, Kathy Neus, Bob Quinn, Ed Taylor and Scott Terrell. CONSULTANTS PRESENT: Keith Knibb and Steve Gross. OTHERS PRESENT: Bob Rauch, Juanita and Frank Schneider, Dorothy Burden and Marjorie Adkerson. PUBLIC INPUT There was no public input. DISCUSSION OF THE DISTRICT'S STRATEGIC PLAN Bob Rauch led staff in a discussion of the District's strategic plan and key issues for the near term. These issues include the following: • Water master plan—implications for growth • Donner Lake—acquiring a new water system and work that will be required • Survey of location of District facilities for GIS • Integration of developer proposals into coherent facilities system • Authority for telecom activity • Long term water demand vs. water supply through build-out • Construction of a metropolitan area broadband network • Electric master plan completion • Maintenance of District independence and survival (include Martis Valley) • Financial demands - utilize property assets to help? • Long range power arrangements 9/20100 Page 1 M • Tie down and implement corporation yard • Financial demands—maintain strict controls over next two years • Electric rate stabilization and power reliability • Maintain close communications with customers • Financial master plan —integrate whole financial picture • Improved communications between Board and staff • New power contracts at a better rates • Maintain good relationships with neighboring agencies • Updated electric and water rates—need rate study • Staff training to encompass new technologies A copy of the topics of discussion for each issue is attached to these minutes for reference. ADJOURNMENT The meeting was adjourned at 6:00 PM. (Further discussion of the District's strategic plan will continue at the regular meeting scheduled for 7:00 PM.) TRUCKE ONNE UBLIC UTILI DISTRICT J. e;raig, g, resi nt, o rd of Di r s Prepared Susan M. Deputy District Clerk smc 9/20100 Page 2 TRUCKEE DONNER PUBLIC UTILITY DISTRICT F STRATEGIC ACTION PLAN September 20, 2000 1. KEY ISSUES FOR THE COMING YEAR (OR SO) 1. Water Master Plan — implications for growth 2. Donner Lake — acquiring a new water system - system condition needs work! 3. Survey of location of district facilities —for GIS 4. Integration of developer proposals — into coherent facilities system 5. Authority for telecom activity needed 6. Long term water demand vs. water supply thru buildout 7. Construct metropolitan area broadband network 8. Electric Master Plan — complete it 9. Maintain district independence & survival (include Martis Valley) 10. Financial demands — utilize property assets to help? 11. Long range power arrangements 12. Tie down & implement corporation yard 13. Financial demands high — low to cover? Maintain strict financial controls over next 2 years 14. Electric rate stabilization & power reliability 15. Maintain close communications with customers 16. Financial Master Plan — integrates whole financial picture 17. Improved communications between Board & staff 18. New power contracts — at better rates 19. Maintain good relationships with neighboring agencies 20. Updated electric & water rates — need rate study 21. Staff training —to encompass new technologies 2. STRATEGIC ISSUES FOR 2000-20001 & BEYOND Issue 1. Donner Lake Issue Issue 2. Financial - High financial demands on district— how to meet? (esp. near term) - Financial Master Plan Issue 3. Power Supply Issue 4. Growth - Electric Master Plan and facilities fees - Water Master Plan and facilities fees Issue 5. Long term water supply W Issue 6. Management & Operations - GIS — location of district facilities - Staff training - Communications — Board and staff Issue 7. Corporation yard Issue 8. Broadband (telecommunications) - Obtain authority to activate latent power - Make decision whether to deploy metropolitan area network Issue 9. District owned land Issue 10. PCWA 3. THE ACTION PLAN Issue 1. Donner Lake Issue: Should District acquire Donner Lake Water Company? (1200 connections) - State DOHS requires boiled water - System is deficient & unacceptable - Local residents have requested District to acquire district & fix system - Currently we are refining cost estimates - Owner is opposed to sale —would require condemnation Action: (a) Conduct disciplined analysis of what will be required - Consulting engineer - Appraise - Consultant engineer working on CEQA (b) Bring report on all of above to Board (c) Bring information on acquisition to Donner Lake property owners (d) Ditto to other PUD water customers (e) Work with present owner to achieve a smooth acquisition process Who: General Manager & staff Consultant engineers Attorney Board When: - Package to Board by end of year (2000) - Follow-up & communications (early 2001) - Complete acquisition by mid 2001 Issue 2. Financial 2.1 High Financial Demands on the District Issue: In 2001-2002, purchased power costs will rise - Undesirable to raise rates, if possible, so as to remain below SPPCo rates (which are frozen) - So we have a temporary (2 year) squeeze on budget Should we restrict our discretionary spending during this period? Action: (a) Postpone some capital spending (for about 2 years) to relieve budget squeeze period. Who: General Manager in 2001 budget When: Bring a conservative budget with a limited capital spending plan to the Board in November 2000 2.2 Financial Master Plan Issue: District is growing rapidly. Increased demands on capital, and operations and maintenance for new growth and for current residents. Need to review facilities fees and rates. New facilities (such as corporation yard). New broadband business and Donner Lake water system. Cash flows & reserves must be set that match dynamic situation. Action: Develop a long-range capital plan and budget. (a) Staff recommend possible use of consultant, along with an appropriate statement of work, for development of a Financial Master Plan Who: Mary Chapman When: Second quarter of 2001 Issue 3. Power Supply Issue: The District is currently purchasing its wholesale power needs on the market. The market is too volatile. We need to secure a wholesale power supply that avoids the price spikes, and is priced close to the cost to produce power at the new plants being brought on line. We need a multi-year contract with transmission service to deliver it to Truckee with appropriate risk mitigation measures. Action: Bring a proposal to the Board for a power supply contract, or series of contracts that satisfy the above criteria. Who: Steve Hollabaugh When: Fourth quarter of 2000 Issue 4 Growth 4.1 Electric master plan Issue: The District electric system is growing due to development within our service territory. The District's current master plan is over 5 years old, and most of the projects identified have been completed. It is now time to prepare an updated electric master plan. There is a need to generate additional facilities fees from developers to pay for electric system facilities needed to serve developments. Action: Submit a draft electric master plan and proposed facilities fee schedule to the Board of Directors. Who: Steve Hollabaugh and Bob Quinn When: First quarter of 2001 4.2 Water master plan Issue: The District water system is growing due to development within our service territory. The District's current master plan is over 5 years old. It is now time to prepare an updated water master plan. There is a need to generate additional facilities fees from developers to pay for water system facilities needed to serve developments. Action: Submit a draft water master plan and proposed facilities fee schedule to the Board of Directors. Who: Neil Kaufman When: Fourth quarter of 2000 Issue 5. Long Term Water Supply Issue: There is substantial groundwater in the basin, but not sufficient number of wells. - Firm yield in basin has been established — but Placer County has half of basin - May need to revisit safe yield of basin - Golf courses create a substantial demand, as does growth - Change in environmental rules impact supply picture Action: (a) consultant assist in revisiting basin safe yield, possible recharge areas, develop model of groundwater basin (b) Work with PCWA on such project— may include other stakeholders in the basin. Develop principles of agreement (c) Water Master Plan will provide information on demand. Who: General Manager and water staff (Ed Taylor and Neil Kaufman) Groundwater consultant When: Fall 2000 — Spring 2001 Issue 6 Management and Operations 6.1 GIS — location of District facilities Issue: The District is in the process of developing advanced GIS capability. It is not clear to Directors and staff what capabilities GIS brings to the District. Action: Present Board workshop and demonstration of GIS, explaining what we are planning to do, and what benefits it will produce. Who: Staff (Ian Fitzgerald) When: January 2001 6.2 Staff training Issue: GIS brings substantial new capabilities to the District. To get full benefit of GIS it needs to be used by staff at all levels of the organization, and GIS needs to be coordinated with other District technology. District staff needs to be trained to use these new technologies. Action: Conduct a broad based training program for District staff in utilization of software and hardware associated with GIS and related technologies. Staff to develop a training program and submit is to the General Manager. Who: Steve Hollabaugh and Ian Fitzgerald. When: First quarter of 2001 6.3 Communications — Board and staff Issue: voters as well as make wise decisions.Vital that Board understand what staff is doing so it can explain this to Actions: (a) Consider a facilitated workshop on the roles and responsibilities of Board and staff, to clarify roles. (b) Consider pruning Board agendas to focus more on key policy areas, with less "hands on" technical information. (c) Consider well-planned tour of district departments and facilities. Staff present to Board what they do. (d) Use the monthly staff reports to keep Board informed regarding significant employee actions, such as hires, separation, employee disabilities, etc. Issue 7 Corporation Yard Action: Prepare a conceptual plan of what the new facility would be, rough costs, benefits, etc. Who: Staff (Kathy Neus), with assistance from a consultant When: Third quarter of 2001 Issue 8. Broadband (telecommunications) 8.1 Obtain authority to activate latent power Issue: The District is evaluating whether to offer broadband services to the community. We need approval from LAFCo to do so. It is difficult to go further in our evaluation until we have a decision from LAFCo's. Action: Submit Vectren report to LAFCo. Complete the LAFCo process leading to approval or denial of activation of the latent power Who: General Manager and Alan Harry When: Fourth quarter of 2000 8.2 make decision whether to deploy metropolitan area network Issue: The Board of Directors is evaluating whether to offer broadband services to the community. A decision must be made to we can proceed or terminate further action. Action: Staff will bring the Broadband issue to the Board at a series of meetings at which the Board will deal with the many individual elements in the decision process. Who: General Manager, Alan Harry, with help from consultants. When: Fourth quarter of 2000 and first quarter of 2001 Issue 9. District owned land Issue: - District has substantial land assets - Desire policy decision on whether to liquidate some of these properties to obtain revenue - Note: must follow process of offering surplus property to other public agencies, then negotiating with private buyers Action: (a) GENERAL MANAGER will bring to Board various options related to disposing of excess land: whether to sell, why sell, when to sell, not sell, etc. (b) Prepare an inventory of these lands (c) Board consider what its interests are in sale of property, & adopt a policy with respect to disposition of property (d) Prepare a (rough) appraisal of the value of the various properties Who: General Manager Attorney Consultants (appraiser) When: December 2000 — GENERAL MANAGER will bring a package of informational materials related to above to Board for consideration Issue 10. Placer County Water Agency Issue: TDPUD and PCWA are neighboring water agencies. We share use of the Martis Valley groundwater basin. TDPUD provides contract O&M services at the Lahontan water system owned by PCWA. TDPUD wishes to expand its presence in Martis Valley in Placer County. PCWA wishes to maintain an ongoing presence in the Martis Valley. Both agencies are interested in developing a closer working relationship to gain mutual benefits. Action: Enter into a formal arrangement by which each agency pursues its interests without damaging the interests of the other agency. Staff to bring a contract to the Board for discussion and adoption. Who: General Manager When: Fourth quarter of 2000 and first quarter of 2001.