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Home My WebLink About2006-10-18 Min - Board REGULAR MEETING October 18, 2006 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 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 a 7:00 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, Mary Chapman, Kim Szczurek, Steve Hollabaugh, Alan Harry, Peter Holzmeister, Nancy Waters, Jessica Wilson, Neil Kaufman and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Frank and Juanita Schneider, Pat Waite, Al Farrantine, Craig Threshie, Lisa Wallace and Pat Davison PUBLIC INPUT Craig Threshie asked the Board to agendize an item for the Truckee River Legacy Trail Foundation regarding District owned property. The Legacy Trail phase 4 runs through this area. The Foundation would like to discuss a right of entry so an environmental consultant can perform a preliminary study to determine the possible location of a portion of the Trail on the Tonini Springs property (APN's 19-300-16 and 19-300-17). ACTION ITEMS CONSIDERATION OF ABANDONMENT OF A PUBLIC UTILITY EASEMENT AT PROSSER DAM ROAD AND THE PACIFIC TELEPHONE AND TELEGRAPH REPEATER STATION. Counsel Steve Gross recused himself from the dais because his firm represents East West Partners, not in this matter, but in general. Director Taylor moved and Director Thomason seconded, a motion to adopt a resolution officially abandoning the existing utility easement described by ORNC 83-33050 at Prosser Dam Road near the Pacific Telephone and Telegraph Repeater Station property. ROLL CALL: All Directors, aye. SO MOVED. CONSIDERATION OF BIDS RECEIVED AND POSSIBLE AWARD OF A CONTRACT FOR PURCHASE OF A POLE CARRIER TRAILER. Director Taylor moved and Director Aguera seconded, a motion to award the pole carrier trailer bid to Global Machinery of Sacramento, California in the amount of $11,175.00 (not including tax). ROLL CALL: Director Sutton, no (inadequate procedure); All Directors, aye. SO MOVED. CONSIDERATION OF A VEHICLE USE POLICY This item was postponed. 1 Minutes: October 18, 2006 WORKSHOP ITEMS DISCUSSION OF A DRAFT POWER SALES AGREEMENT BETWEEN THE DISTRICT AND THE UTAH ASSOCIATION OF MUNICIPAL POWER SYSTEMS RELATED TO THE IPP-3 GENERATION FACILITY Steve Hollabaugh gave a presentation on the PUD power supply and UAMPS IPP# Unit 3 project: • Power Supply charts: o Cost to serve load from 2005-2014 0 2008 power supply options compared to costs from 2005-2007: $52.34 to $60.28 o Estimated % increase in retail electric rates due to power supply costs: .90%to 5.80% o Peak load & resources, and energy load & resources with growth rates • IPP (Intermountain Power Plant) Unit 3 facts (from pamphlet) o Cleaner, more efficient technologies will reduce emissions by 90% o Project helps to meet increased energy needs as a result of population, economic growth and use of technology o IPP currently is a two-unit project, with capacity for the Unit 3 Project- to begin commer- cial operation in spring 2012 o Helps to diversify the portfolio of energy resource options: conservation efforts, renew- able and fossil fuel resources o Makes sense to the PUD: coal technology keeps energy costs at a minimum, reliability and location • Power Sales Contract & Project Agreements o Power sales contract o Ownership Agreement o Joint Operating Agreement o Common Facilities and Site Agreement o Unit 3 Lease, Use and Service Agreement • Option for the 2009 time period: extend UAMPS SCE product or execute contract similar to existing arrangement with active power marketers Board comments and answers: • Diverse mix meets District needs for renewable energy and hydro • Convert construction bonds to long term bonds as a group with UAMPS • District entitlement share will not go down, but can go up. • IPP shareholders consist of 50% UAMPS coops or public agencies and the other 50% are for profit utilities. • Yes, we can sell the overage power STAFF PRESENTATION AND DISCUSSION OF THE DRAFT BUDGET FOR 2007 Each Department Manager discussed: • Total Department Budget Compared to 2006 • Goals/Objectives • What my Department Does • How we're going to save money • Budget Line items to "Highlight' • Capital "Highlights" Steve Hollabaugh went over a Purchased Power Expenditure detailing Constellation energy supply, Sierra Pacific Power Co. Transmission, NCPA scheduling and WAPA cost/Credit for the 2006 budget and 2007 budget with dollar and percent change. 2 Minutes: October 18, 2006 Steve Hollabaugh (Electric Distribution), Ed Taylor (Water Operations) and Mary Chapman (Administra- tive Services) explained each Department's budget strategy: • Work the District goals into the Budget- how to save money even with increased cost of employees and materials • Electric Distribution -cut one half lineman position by contracting out in the summer • After 2007, an electric rate increase may be needed as the District will require a new power contract • Water Operations has a 2% increase • Water Operations will not fill one position- equipment, training and maintenance programs have made more efficient. • Water Operations is trying to do more in-house, instead of using outside contractors • Water Operations would like to go out to bid on 2007 projects (pipeline replacement and hydro power pumps) in November, so they can get ahead of the construction curve • Administrative Services- use of technology and equipment to keep number of staff down • Administrative Services-phone system is a capital expense • Administrative Services- reevaluate job descriptions (duties have changed over time) Board comments: • Good comparison from prior budget year to next budget year • Report COP funded items separately on monthly finance reports • Good idea to bid projects early to access better proposals • Budget is not sole authorization to proceed with projects • Unspent budget funds should be returned to the general fund DISCUSSION OF A DRAFT CODE OF BUSINESS ETHICS Board remarks: • Remove the word friend in the Conflict of Interest program • Provides a high standard of conduct for the PUD employees • Addresses confidential information ROUTINE BUSINESS TREASURER'S REPORT Approval of the report: Director Thomason moved, and Director Aguera seconded, that the Board approve the month ended September 30, 2006. ROLL CALL: Director Taylor, absent; All other Directors aye, by voice vote. SO MOVED Approval of disbursements: Director Aguera moved, and Director Hemig seconded, that the Board approve the September 2006 disbursements report. ROLL CALL: Director Taylor, absent; Director Sutton, no (feels the Board should approve the checks be- fore they are mailed); All other Directors, aye. SO MOVED. STAFF REPORTS No action taken. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 10:40 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT J. Ron Hemig, President Prepared byf' (Q� Barbara Cahill, Deputy District Cle k r 3 Minutes: October 18, 2006