The URL can be used to link to this page

Home My WebLink About2006-11-15 Min - Board REGULAR MEETING November 15, 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 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: Nancy Waters, Kim Szczurek, Tricia Phillips, Ed Taylor, Mark Thomas, Alan Harry, Peter Holzmeister and Barbara Cahill CONSULTANTS PRESENT: Steve Gross and Jackie Coombs OTHERS PRESENT: Juanita Schneider, Christine Stanley, Pettit Gilwee, Dan Favier, Ellie Hyatt, Steve Frisch, Ann Penfield, Peggy Towns, Michael Lee, Jessica Moreno, Jude Gavigon, Peter Mayhill, Linda Lindsay, Steven Coniglio, Pete Abel, Michelle Gartner, Steph Tiha, Anya Federowski, Kinka Mcosa, Mark Keim, Michael Washington, Alex Herman, Courtney Helway, Rick Valentine, Timothy Condon, Jesse Ledge, Rene DeFields, Sara Honeycutt, Nikki Riley, Brendan Riley, Dylan Riley, Kris Hansen, Joe McCadden, Shannon Owens, Chris Wolfe, Shannon Rahlves, Mike Kahlich, ... Shannon Gilpin, Dan Hurley, Erica Stein, David Jerome, Rick Momii, Justin States, David Gemme, Jamie Gemme, Lisa Atwell, Brian Woody and 50 other members of the public.. PUBLIC INPUT There was no public input. PUBLIC HEARING — At 7:00 PM (or as soon thereafter as possible) a public hearing will be held for the purpose of receiving written or oral comments on the draft Budget for 2007. Ellie Hyatt asked if the purchase of generators were in the budget. Mr. Ed Taylor responded that they were in the 2007 budget. There was no other public input. The hearing was closed. ACTION ITEMS President Hemig asked the board to move agenda items 7, alternative power generation and 8, UAMPS power sales contract because of the large public turnout. DISCUSSION OF ALTERNATE POWER GENERATION OPTIONS FOR MEETING DISTRICT'S ELECTRIC NEEDS President Hemig began with some facts and an explanation of the process: • This is not an eleventh hour decision. The first talks with UAMPS about future power concerns began back in 2000 and talks about the IPP3 contract began two years ago • Power contracts take year of development. • Truckee receives approximately 90%of our power from coal • The Board wants to hear public ideas. We need to deal with reality- not just theory. 1 Minutes: November 15, 2006 Mr. Holzmeister said the District has a vision on how to assemble a power supply using green and base load power. The District started over twenty years ago trying to access hydro power, now approximately 13%. Plus the District has applied for another source at Stampede (approximately 3%). The District also recognizes that green power is not currently available. The District uses coal power to provide base use at a uniform price. The price the District will pay for power under this IPP 3 contract is one half of what the price is on the open market. And green power costs are even higher. The District's goal is to use as much green power as possible above the base. Public comments followed: Michael Washington • Coal production requires open mines, causing acid rain and pollution Peter Mayfield • Add the local specs to the Power Content Label regarding the energy mix of Truckee • The Utah plant comes in at 24 in the top 50 CO2 polluted plants • Truckee values the environment- some ski resorts are using wind power • The new California bill restricts power contracts to five years Dan Favier • Biomass plant at Collins Pines provides power to the community • Coal resource maybe cheap now, but in the future, it could be subject to more tax Peggy Towns • No one has any idea what will happen with technology. • Government subsidies will change for energy. Coal may not be the cheapest most abundant source. Brendan Riley • Energy is a valuable commodity and says something about values. Using fossil fuels should be against our values. • What is the risk in participating in the development of a coal power plant? Beth Ingells • Truckee is trying to be sustainable • Choosing the path because of the cost is a poor decision. The District needs to perform due diligence and not be a hostage by Utah energy choices. Steve Frisk • There is a real problem with the use of coal- the Truckee community should bite the bullet now and not commit to a 50 year contract. Coal kills many people each year. • Execute 5 year contracts to make a conscious effort to reduce use of coal. Joe Erickson • Add a clause to the 50 year contract to back out Mark Herme • Focus on the global footprint and the global climate change Chris Wooster • Renewable Portfolio Standard- advocates green Kristin Colby • District Mission statement states no negative impact on the environment. • Willing to pay more for green power to have a cleaner community without pollution. • Would like to see some numbers on risk: coal supplies, subsidies, new technology • Market will push green to make it a more viable source- consistent with Truckee values Josh Susman • Betting the coal plant will meet future emission controls • Debt service or bonding- what are the risks • Presentation of Utah IPP power plants by Brain Woody and Ronnie Colby 2 Minutes: November 15, 2006 Neal Mock • Solar panels provide 15 mg from each panel Derek Holbrook • Check other alternatives of creating our own power plant Paula Fernals • Technology is available in our area, diversify. What about co-generation or tri-generation? • What things can people do to be more efficient to offset dependency on power? Dan Warren • Community needs to go to federal representatives to access green power. Ronnie Colby • Power contract is a big project as the District looks at cheaper power but the contract lacks depth, traditional market and green power sources are complicated, State bill AB 32 — greenhouse emissions John Eaton • District job is to represent the will of the public • Get a series of proposals for alternatives to coal and their duration. • California law 1368- capping greenhouse gas emissions Rolf Godon • This seems to be a knee jerk reaction. The District has been looking at this for a year- look at resources to work better together- there is a lack of trust Dan Hurley • Contract locks into a fixed minimum purchase of power • Board has wrestled with this problem- the public needs to attend meetings • Government may put restraints on coal plants- would the District be liable for cost overruns Board comments followed: • Risks for long term: government shuts down plants, plant gets blown up, source is stopped • Have ability to get out of contract • Do public outreach • Pursue shorter term contract • What are other communities doing? • Look into new law that limits power contracts to 5 years • It is in the PUD's best interest to have a diverse power portfolio • No coal in the portfolio- this is not realistic and economic • May need to adjust base load to access more green power • Bring all pieces together and make informed decision. • Use coal power for base load • Concern about being locked into a 50 year contract • Possible savings of 5 million per year with the 50 year contract- this would allow the District to access more green power • Want staff to look into detrimental effects of coal • What about gas plants? No action taken. Item postponed. CONSIDERATION OF A RESOLUTION APPROVING A POWER SALES CONTRACT BETWEEN THE DISTRICT AND THE UTAH ASSOCIATION OF MUNICIPAL POWER SYSTEMS No action taken. Item postponed. 3 Minutes: November 15, 2006 CONSIDERATION OF A RESOLUTION ADOPTING THE DISTRICT BUDGET FOR 2007 Director Thomason moved and Director Taylor seconded, a motion to adopt a resolution approving the Budget for 2007. ROLL CALL: All Directors, aye. SO MOVED. CONSIDERATION OF A RESOLUTION ADOPTING ACCOUNTING OVERHEAD RATES FOR 2007 Director Taylor moved and Director Thomason seconded, a motion to adopt a resolution approving the accounting overhead rates for 2007. ROLL CALL: Director Sutton, abstain (believes the overhead rates are too high and would like advise from an accountant); All other Directors, aye. SO MOVED. CONSIDERATION OF A PROPOSAL FROM INLAND ECOSYSTEMS TO PERFORM ENVIRONMENTAL CLEARANCE SERVICES RELATED TO THE PROPOSED FIBERBOARD WELL PROJECT Director Sutton wanted the record to show she believes the Board should send out Request for Proposals and select a consultant for a two year period. Director Taylor moved and Director Thomason seconded, a motion to accept the proposal submitted by Inland Ecosystems and award a contract for preparation of the CEQA Initial Study associated with the Fibreboard Well project in an amount not to exceed $4,796.00. ROLL CALL: All Directors, aye. SO MOVED. CONSIDERATION OF A PROPOSAL FROM INLAND ECOSYSTEMS TO PERFORM ENVIRONMENTAL CLEARANCE SERVICES RELATED TO THE PROPOSED PROSSER HEIGHTS PUMP STATION PROJECT Director Taylor moved and Director Aguera seconded, a motion to accept the proposal submitted by Inland Ecosystems and award a contract for preparation of the CEQA Initial Study associated with the Alder Drive Pump Station project in an amount not to exceed $4,796.00. ROLL CALL: All Directors, aye. SO MOVED. ROUTINE BUSINESS TREASURER'S REPORT Approval of the report: Director Thomason moved, and Director Taylor seconded, that the Board approve the month ended October 31, 2006. ROLL CALL: All Directors aye, by voice vote. SO MOVED Approval of disbursements: Director Thomason moved, and Director Taylor seconded, that the Board approve the October 2006 disbursements report. ROLL CALL: Director Sutton, no (feels the Board should approve the checks before they are mailed); All other Directors, aye. SO MOVED. STAFF REPORTS No action taken 4 Minutes: November 15, 2006 WORKSHOP ITEMS DISCUSSION OF A THE DISTRICT'S BROADBAND BUSINESS PLAN AND THE RECENTLY COMPLETED CUSTOMER SURVEY Agenda item postponed. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 11:55 PM. TRUCKEE DONNE UBLIC UTILI DISTRICT J. R ig, Pr7ident ram, Prepared by Barbara Cahil(,Deputy District Clerk 5 Minutes: November 15, 2006