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HomeMy WebLinkAbout2005-06-01 Min - Board REGULAR MEETING June 1, 2005 In accordance with District Code Section 2.08.010, the TDPUD minutes are action only min- utes. All Board meetings are recorded on audio tapes which are preserved perpetually 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 7:03 PM in the TDPUD Board room by President Hemig. ROLL CALL: Directors Joe Aguera, Ron Hemig, Patricia Sutton, Tim Taylor and Bill Thomason were present. EMPLOYEES PRESENT: Ed Taylor, Mark Thomas, Sanna Schlosser, Jessica Kosfiszer, Steve Hollabaugh, Pat Waite, Ian Fitzgerald, Nancy Waters, Jim Wilson, Neil Kauffman and Barbara Cahill CONSULTANTS PRESENT: Steve Gross, Larry Rolapp, Greg Blonde, Dennis DeCuir, John Gibbs, Sandra McDonald and Mike McDonald. OTHERS PRESENT: Frank and Juanita Schneider, Emilie Kashtan, Mark Wasley, Ed Morgan, Rick McCann, Paul Raymore, John Eaton, Al Farrantine, Eric Perlman, Pat Davison and one other member of the public. PUBLIC INPUT Emilie Kashtan wanted to inform the Board about a newly formed group called Donner Lake Community Association PUBLIC HEARINGS — At 7:00 PM or as soon thereafter as possible, two public hearings will be held for the purpose of receiving written and/or oral comments from members of the public re- garding: ADOPTION OF AN INITIAL ENVIRONMENTAL STUDY AND PROPOSED MITIGATED NEGATIVE DECLARATION RELATED TO CONSTRUCTION OF THE DONNER LAKE ROAD TANKS Al Farrantine is concerned about the tank location at the West end of Donner Lake. He owns property adjacent to the tank site and is going to build a house on this parcel. Mr. Farrantine's issues are: • Visibility: o The tank location is right on the cut of the road. He feels the location he had in mind about 75 feet back would be behind the tree cover and off the road. o The tank site was pushed farther down into Town Right of way. The one tank will be visible for four years with nothing but cut and fill noticeable for the second tank. Residents will see the tanks as they round the corner of the road. How will trees grow in an environment of 1 to 1 and 1 to 2 in order to provide visible protection of this tank? o If one tank is moved too far, the PUD would have to get permission from Cal Trans to do a cut back into their right of way. This could cause time delays with up to a year. 1 TRUCKEE DONNER , 'u Resolution No. 2005 - 07 RESOLUTION OF THE BOARD OF DIRECTORS OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT, ACTING AS THE LEGISLATIVE BODY OF TRUCKEE DONNER PUBLIC UTILITY DISTRICT COMMUNITY FACILITIES DISTRICT NO. 04-1 (GRWS CROSSING), AUTHORIZING THE SALE AND ISSUANCE OF SPECIAL TAX BONDS OF SAID COMMUNITY FACILITIES DISTRICT, APPROVING DOCUMENTS RELATING THERETO AND AUTHORIZING AND DIRECTING CERTAIN RELATED ACTIONS WHEREAS, the Board of Directors (hereinafter sometimes referred to as the "legislative body of the Community Facilities District" or the "Board"), of the Truckee Donner Public Utility District has heretofore undertaken proceedings and declared the necessity to issue bonds on behalf of Truckee Donner Public Utility District Community Facilities District No. 04-1 (Gray's Crossing) (the "Community Facilities District") pursuant to the terms and provisions of the Mello- Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5, of the Government Code of the State of California (the"Act"); and WHEREAS, based upon a resolution adopted by the legislative body of the Community Facilities District on June 16, 2004 and an election held on July 21, 2004 authorizing the issuance of bonds by the Community Facilities District, the Community Facilities District is now authorized to issue bonds in one or more series, pursuant to the Act, in an aggregate principal amount not to exceed $35,000,000; and WHEREAS, the Community Facilities District and The Bank of New York Trust Company, N.A., successor in interest to BNY Western Trust Company, (the "Trustee") have heretofore entered into the Trust Indenture dated as of March 1, 2004 (the "Original Indenture") and, pursuant thereto, the Community Facilities District has issued bonds in an aggregate principal amount of $15,375,000 designated as the Truckee Donner Public Utility District Community Facilities No. 04-1 (Gray's Crossing) Special Tax Bonds, Series 2004 (the "2004 Bonds"); and WHEREAS, the legislative body of the Community Facilities District intends to provide additional funds the financing of the cost of planning, designing, constructing, acquiring, modifying, expanding, improving, furnishing, equipping or rehabilitating certain improvements, and all appurtenances and appurtenant work in connection with the foregoing (collectively, the "Facilities") and the incidental expenses incurred and to be incurred in connection with financing the Facilities, including costs associated with the issuance of bonds and the establishment and replenishment of a bond reserve fund, through the issuance of bonds in an aggregate principal amount not to exceed $19,625,000 designated as the "Truckee Donner Public Utility District Community Facilities District No. 04-1 (Gray's Crossing) Special Tax Bonds, Series 2005" (the "2005 Bonds" and, together with the 2004 Bonds, the "Bonds") that will constitute "Parity Bonds" within the meaning of the Original Indenture; and WHEREAS, the legislative body of the Community Facilities District has determined all requirements of the Act for the issuance of the 2005 Bonds as Parity Bonds under the Original Indenture have been satisfied; WHEREAS, in connection with the authorization, sale and issuance of the Bonds and the acquisition and construction of the facilities, forms of the following documents have been presented to this Board for approval: 1. the First Supplemental Trust Indenture, dated as of June 1, 2005, by and between the District and the Trustee (the "First Supplemental Indenture"); 2. the Continuing Disclosure Agreement, dated as of June 1, 2005 by and between MuniFinancial, as dissemination agent (the "Dissemination Agent"), and the Community Facilities District (the "Continuing Disclosure Agreement"); 3. the Preliminary Official Statement relating to the Bonds (the "Preliminary Official Statement"); and 4. the Bond Purchase Agreement relating to the Bonds (the "Bond Purchase Agreement") by and between the Community Facilities District and UBS Financial Services Inc. (the"Underwriter"); NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT, ACTING AS THE LEGISLATIVE BODY OF TRUCKEE DONNER PUBLIC UTILITY DISTRICT COMMUNITY FACILITIES DISTRICT NO. 04-1 (GRAY'S CROSSING), DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: Section 1. The above recitals, and each of them, are true and correct. Section 2. The proposed forms of the First Supplemental Indenture and the Continuing Disclosure Agreement are hereby approved; and the President of the Board of Directors (the "President") and the District Clerk (the "Clerk") are hereby authorized and directed for and in the name and on behalf of the Community Facilities District to execute, acknowledge and deliver to the respective other parties, the First Supplemental Indenture and the Continuing Disclosure Agreement in substantially said forms, with such additions thereto, completions thereof and/or changes therein as the officers executing the same may approve as necessary or desirable (consistent with the provisions of this Resolution and with form of the Bond Purchase Agreement approved pursuant hereto), such approval to be conclusively evidenced by the execution and delivery thereof. Section 3. The issuance of the Bonds pursuant to the Original Indenture and the First Supplemental Indenture in an aggregate principal amount approved by the General Manager of the Truckee Donner Public Utility District (the "General Manager") as being necessary to fund the various funds and accounts created by the Indenture in the amounts specified in the Preliminary Official Statement (or as determined by the General Manager), and to pay the costs of issuing the Bonds and the other costs described in the Preliminary Official Statement, is hereby authorized, Res. 2005-07 2 provided that the principal amount of the Bonds shall not exceed the lesser of: (a) $19,625,000 or (b) the remainder of (i) one-quarter of the value of the property within the Community Facilities District that will be subject to the Special Tax, as such value is estimated in an appraisal prepared for the Community Facilities District by Christopher T. Donaldson, MAI, CCIM (a copy of which is set forth in Appendix B to the Preliminary Official Statement) minus the principal amount of all other bonds outstanding, if any, that are secured by a special tax levied pursuant to the Act on property within the Community Facilities District or a special assessment levied on such property (as shown in the report of California Municipal Statistics, Inc. which a pears as Table 2 in the Official Statement). The Bonds shall mature on the dates andpn the amounts, and bear i tle east at the rates, set forth in the Bond Purchase Agreement to be executed on behalf of the Community Facilities District in accordance with Section 8 hereof. Section 4. In connection with the issuance of the Bonds, the President and the Clerk are hereby authorized and directed for and in the name and on behalf of the Community Facilities District to execute, acknowledge and deliver to the respective other parties such additional agreements, as the officers executing the same may approve (including, but not limited to an Investment Agreement, as defined in the Original Indenture) as necessary or desirable to provide reductions in the yields of Bonds or additional debt service relief or cash flow savings or increased payments to the Community Facilities District, such approval to be conclusively evidenced by the execution and delivery thereof. Section 5. The form of the Bonds, as set forth in the form of the First Supplemental Indenture (as the Indenture may be modified pursuant to Section 2 hereof), is hereby approved; and the President and the Clerk are hereby authorized and directed to execute them by facsimile signature in the name and on behalf of the Community Facilities District. manual or Section 6. The proposed form of the Preliminary Official Statement is hereby approved with such changes thereto as may be approved by the General Manager in order to make such Preliminary Official Statement final as of its date, except for the omission of certain information, as permitted by Section 240.15c2-12(b)(1) of Title 17 of the Code of Federal Regulations (the "Rule"); and the distribution of the Preliminary Official Statement in connection with the sale of the Bonds, with such changes included, is hereby authorized. The General Manager is authorized and directed to execute and deliver a certificate relating to compliance with the Rule. The President and the General Manager are each authorized and directed, jointly and severally, to execute and deliver to the Underwriters a final Official Statement in substantially the form of the Preliminary Official Statement hereby approved with such changes as may be approved by the officer executing said document as necessary or desirable, such approval to be conclusively evidenced by the execution and delivery thereof. Section 7. In accordance with the provisions of Section 53360.4, the Board hereby finds and determines that a negotiated sale of the Bonds to the Underwriters in accordance with the terms of the Bond Purchase Agreement will result in a lower overall cost to the Community Facilities District than a sale conducted pursuant to Section 53360 of the Act. Section 8. The proposed form of the Bond Purchase Agreement and the sale of the Bonds pursuant thereto are hereby approved, provided that (a) the aggregate purchase price of the Bonds (exclusive of any original issue discount) shall not be less than ninety-eight and seventy hundredths percent (98.70%) of the original aggregate principal amount of the Bonds, (b) the average annual rate of interest on the Bonds shall not exceed six and one-half percent (6.5%), (c) the final maturity of the Bonds shall be not later than September 1, 2035 and (d) the maturity dates and purchase price of and interest rates applicable to the Bonds shall have been approved by a pricing committee consisting of the General Manager, the Assistant General Manager, and the Res. 2005-07 3 Administrative Services Manager with the advice of Fieldman, Rolapp &Associates; and, subject to such approval, the President and the Clerk are hereby authorized and directed to evidence the Community Facilities District's acceptance of the offer made by said Bond Purchase Agreement by executing and delivering to the Underwriters said Bond Purchase Agreement in said form with such changes therein as the officers executing the same may approve as necessary or desirable, such approval to be conclusively evidenced by the execution and delivery thereof. Section 9. In the event the President is unavailable to execute and deliver any of the documents that the President is authorized and directed to execute and deliver pursuant to the terms of this Resolution, then any other member of this Board is hereby authorized and directed to do so. Any of the documents that the General Manager is authorized and directed to execute and deliver pursuant to the terms of this Resolution may be executed by any officer of the Truckee Donner Public Utility District designated to do so by the General Manager. Section 10. The President and the General Manager and other officers of the Truckee Donner Public Utility District are hereby authorized and directed, jointly and severally, to execute and sign any and all approvals, certificates, statements, requests, requisitions and orders of the Community Facilities District in connection with the issuance of the Bonds; and any action specifically authorized or directed by this Resolution to be undertaken by any of such officers may be undertaken by either of the others with the same force and effect as if it had been undertaken by the officer specifically authorized or directed to do so. Section 11. If any section, paragraph or provision of this Resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any remaining provisions of this Resolution. Section 12. This Resolution shall take effect from and after its adoption. ADOPTED and APPROVED by the Board of Directors of the Truckee Donner Public Utility District on this 1'day of June, 2005 by the following vote: AYES: Directors Aguera, Hemig and Thomason NOES: Director Sutton RECUSE: Director Taylor ABSENT: None ABSTAIN: None TRUCKEE DONNER P BLIC UTILITY DISTRICT By: J. o emig, President of the Boar of Directors ATTEST: Peter L. Holzmeis er, District Clerk Res. 2005-07 4 TRUCKEE � � Resolution No. 2005 - 08 r4 AUTHORIZING DISTRICT STAFF TO ENTER INTO CONTRACTS FOR POWER SUPPLY AND RELATED SERVICES WHEREAS, the District has entered into contracts with Constellation Power Source (CPS) for the purchase of wholesale power and energy that end December 31, 2007; and WHEREAS,the District has entered into a contract with Western Area Power Administration(WAPA) for the purchase of a small amount of energy supply; and WHEREAS,the District has entered into a contract with Northern California Power Agency(NCPA)for scheduling services; and WHEREAS,the UAMPS IPP3 unit is scheduled to come on line during 2011 and will be a great asset to the District after it is on line WHEREAS, the District will need to secure power for its customers for the period of 2008 through 2011; and WHEREAS,the increasingly volatile power supply market has made it difficult to get dealers to hold prices; WHEREAS, in order to secure the best prices for power supply and related services and to avoid paying a substantial premium, it is in the best interests of the District that the Board authorize staff to pre-qualify interested bidders, seek competitive bids and establish parameters for the purchase of power and related services and delegate to the General Manager and/or the Power Supply Engineer the authority to enter into and execute such agreements on behalf of the District in accordance with the parameters established by the Board and set forth in this Resolution; and NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS THAT: 1. The Board adopts the above recitals as findings. 2. District staff is authorized to prepare and circulate a Request for Proposals for the purpose of identifying entities that are interested in being pre-qualified in terms of credit requirements, financial strength and other conditions as may be determined to be appropriate by staff and submitting competitive bids to provide the District with power supply and/or related services for the period from approximately January 1, 2008 through approximately December 31, 2011. 3. District staff is authorized to pre-qualify entities interested in bidding on the power supply and/or related services contracts for the period from approximately January 1, 2008 through approximately December 31, 2011. 4. District staff is authorized to seek competitive bids for a power supply and/or related services for the period from approximately January 1,2008 through approximately December 31,2011. Resolution 2005-08 5. After pre-qualifying bidders and seeking competitive bids as set forth above, the General Manager and/or the Power Supply Engineer of the District are authorized to enter into and execute power supply and related services contracts, provided such contracts are within the following parameters: a) Contract term shall be for the period approximately beginning January 1, 2008 through approximately December 31, 2011. b) Contract quantities shall be in substantially similar amounts as those that appear on Exhibit A, attached hereto. c) Contract shall include puts, calls or comparable hourly shaping provisions the pricing of which shall be based on prevailing market prices. d) The price for power shall not exceed $56.00 per MWH. d) Contract shall be with a counterparty that is rated at least BBB+, or whose obligations are guaranteed by an entity that is rated at least BBB+, and shall include adequate protection in the event the counterparty, or its guarantor, shall experience a rating downgrade. 6. The authority granted to the General Manager and the Power Supply Engineer pursuant to this Resolution shall expire on August 31, 2006. 7. The General Manager or the Power Supply Engineer shall inform the Board of Directors of any contracts entered into and executed pursuant to this Resolution. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the first day of June, 2005 by the following roll call vote: AYES: Directors Aguera, Hemig, Taylor and Thomason NOES: None ABSTAIN: Director Sutton ABSENT: None TRUCK DON PUBLIC UTI ITY TRICT J. o d Hemig, President of the Board ATTEST: Peter L. Holzmeister, District Clerk Resolution 2005-08 Exhibit "A" TDPUD Projected Block Purchase Load Growth 2% 2% 2% 2% 2% 2% 2% Western Adjustment 0 as of Feb 2005 HLH 2005 2006 2007 2008 2009 2010 2011 Jan 21 21 22 22 23 23 24 Feb 21 21 22 22 23 23 24 Mar 18 18 19 19 19 20 20 Apr 16 16 17 17 17 18 18 May 16 16 17 17 17 18 18 Jun 16 16 17 17 17 18 18 Jul 18 18 19 19 19 20 20 Aug 18 18 19 19 19 20 20 Sep 17 17 18 18 18 19 19 Oct 17 17 18 18 18 19 19 Nov 19 19 20 20 21 21 21 Dec 21 21 22 22 23 23 24 LLH 2005 2006 2007 2008 2009 2010 2011 Jan 17 17 18 18 18 19 19 Feb 17 17 18 18 18 19 19 Mar 15 15 16 16 16 17 17 Apr 13 13 14 14 14 14 15 May 12 12 12 13 13 13 14 Jun 12 12 12 13 13 13 14 Jul 13 13 14 14 14 14 15 Aug 13 13 14 14 14 14 15 Sep 12 12 12 13 13 13 14 Oct 13 13 14 14 14 14 15 Nov 15 15 16 16 16 17 17 Dec 18 18 19 19 19 20 20 Sunda HLH 2005 2006 2007 2008 2009 2010 2011 Jan 5 5 5 5 5 6 6 Feb 3 3 3 3 3 3 3 Mar 2 2 2 2 2 2 2 Apr 3 3 3 3 3 3 3 May 4 4 4 4 4 4 5 Jun 5 5 5 5 5 6 6 Jul 5 5 5 5 5 6 6 Aug 5 5 5 5 5 6 6 Sep 5 5 5 5 5 6 6 Oct 5 5 5 5 5 6 6 Nov 4 4 4 4 4 4 5 Dec 3 3 3 3 3 3 3 Resolution 2005-08 TRUCKEE w Resolution No. 2005 - 08 AUTHORIZING DISTRICT STAFF TO ENTER INTO CONTRACTS FOR POWER SUPPLY AND RELATED SERVICES WHEREAS, the District has entered into contracts with Constellation Power Source (CPS) for the purchase of wholesale power and energy that end December 31, 2007; and WHEREAS,the District has entered into a contract with Western Area Power Administration(WAPA) for the purchase of a small amount of energy supply; and WHEREAS,the District has entered into a contract with Northern California Power Agency(NCPA)for scheduling services; and WHEREAS,the UAMPS IPP3 unit is scheduled to come on line during 2011 and will be a great asset to the District after it is on line WHEREAS, the District will need to secure power for its customers for the period of 2008 through 2011; and WHEREAS,the increasingly volatile power supply market has made it difficult to get dealers to hold prices; WHEREAS, in order to secure the best prices for power supply and related services and to avoid paying a substantial premium, it is in the best interests of the District that the Board authorize staff to pre-qualify interested bidders, seek competitive bids and establish parameters for the purchase of power and related services and delegate to the General Manager and/or the Power Supply Engineer the authority to enter into and execute such agreements on behalf of the District in accordance with the parameters established by the Board and set forth in this Resolution; and NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS THAT: 1. The Board adopts the above recitals as findings. 2. District staff is authorized to prepare and circulate a Request for Proposals for the purpose of identifying entities that are interested in being pre-qualified in terms of credit requirements, financial strength and other conditions as may be determined to be appropriate by staff and submitting competitive bids to provide the District with power supply and/or related services for the period from approximately January 1, 2008 through approximately December 31, 2011. 3. District staff is authorized to pre-qualify entities interested in bidding on the power supply and/or related services contracts for the period from approximately January 1, 2008 through approximately December 31, 2011. 4. District staff is authorized to seek competitive bids for a power supply and/or related services for the period from approximately January 1,2008 through approximately December 31,2011. Resolution 2005-08 5. After pre-qualifying bidders and seeking competitive bids as set forth above, the General Manager and/or the Power Supply Engineer of the District are authorized to enter into and execute power supply and related services contracts, provided such contracts are within the following parameters: a) Contract term shall be for the period approximately beginning January 1, 2008 through approximately December 31, 2011. b) Contract quantities shall be in substantially similar amounts as those that appear on Exhibit A, attached hereto. c) Contract shall include puts, calls or comparable hourly shaping provisions the pricing of which shall be based on prevailing market prices. d) The price for power shall not exceed $56.00 per MWH. d) Contract shall be with a counterparty that is rated at least BBB+, or whose obligations are guaranteed by an entity that is rated at least BBB+, and shall include adequate protection in the event the counterparty, or its guarantor, shall experience a rating downgrade. 6. The authority granted to the General Manager and the Power Supply Engineer pursuant to this Resolution shall expire on August 31, 2006. 7. The General Manager or the Power Supply Engineer shall inform the Board of Directors of any contracts entered into and executed pursuant to this Resolution. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the first day of June, 2005 by the following roll call vote: AYES: Directors Aguera, Hemig, Taylor and Thomason NOES: None ABSTAIN: Director Sutton ABSENT: None TRUCK DON PUBLIC UTI ITY TRICT J. o d Hemig, President of the Board ATTEST: Peter L. Holzmeister, District Clerk Resolution 2005-08 Exhibit "A" TDPUD Projected Block Purchase Load Growth 2% 2% 2% 2% 2% 2% 2% Western Adjustment 0 as of Feb 2005 HLH 2005 2006 2007 2008 2009 2010 2011 Jan 21 21 22 22 23 23 24 Feb 21 21 22 22 23 23 24 Mar 18 18 19 19 19 20 20 Apr 16 16 17 17 17 18 18 May 16 16 17 17 17 18 18 Jun 16 16 17 17 17 18 18 Jul 18 18 19 19 19 20 20 Aug 18 18 19 19 19 20 20 Sep 17 17 18 18 18 19 19 Oct 17 17 18 18 18 19 19 Nov 19 19 20 20 21 21 21 Dec 21 21 22 22 23 23 24 LLH 2005 2006 2007 2008 2009 2010 2011 Jan 17 17 18 18 18 19 19 Feb 17 17 18 18 18 19 19 Mar 15 15 16 16 16 17 17 Apr 13 13 14 14 14 14 15 May 12 12 12 13 13 13 14 Jun 12 12 12 13 13 13 14 Jul 13 13 14 14 14 14 15 Aug 13 13 14 14 14 14 15 Sep 12 12 12 13 13 13 14 Oct 13 13 14 14 14 14 15 Nov 15 15 16 16 16 17 17 Dec 18 18 19 19 19 20 20 Sunday HLH 2005 2006 2007 2008 2009 2010 2011 Jan 5 5 5 5 5 6 6 Feb 3 3 3 3 3 3 3 Mar 2 2 2 2 2 2 2 Apr 3 3 3 3 3 3 3 May 4 4 4 4 4 4 5 Jun 5 5 5 5 5 6 6 Jul 5 5 5 5 5 6 6 Aug 5 5 5 5 5 6 6 Sep 5 5 5 5 5 6 6 Oct 5 5 5 5 5 6 6 Nov 4 4 4 4 4 4 5 Dec 3 3 3 3 3 3 3 Resolution 2005-08