HomeMy WebLinkAbout2006-07-05 Min - Board REGULAR MEETING
July 5, 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 7:02 PM in the TDPUD Board room by President Hemig.
ROLL CALL: Directors Joe Aguera, Ron Hemig, Patricia Sutton and Bill Thomason were present.
Director Tim Taylor was absent.
EMPLOYEES PRESENT: Ed Taylor, Steve Hollabaugh, Kim Szczurek, Nancy Waters, Alan Harry,
Peter Holzmeister, Neil Kaufman, Jessica Wilson and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross
OTHERS PRESENT: Frank and Juanita Schneider, Pat Davison, Pat Waite, Dennis Sanchez, Rolf
Godon, Emilie Kashtan, Duke Ackerman, Bruce Douglass, Kirk Short, Fred Leideker, Patrick Taylor
and eight other members of the public.
PUBLIC INPUT
Kirk Short, acting as the real estate agent for Fred Leideker, placed an offer of $240,000 for the
property located behind the District building. A letter of intent was given to Peter Holzmeister. The
board will put this matter on a future agenda.
STAFF PRESENTATION REGARDING WATER SYSTEM INFRASTRUCTURE NEEDS, WATER
FUND FINANCIAL POSITION, AND PROPOSED RATE INCREASE AND BILLING SURCHARGE.
Staff's presentation covered the following about the Water Utility:
• Wants to: establish operating reserves, address water system failures, replace vs. repair,
complete Donner Lake System reconstruction plan, replenish internal borrowings and
refinance existing debt
• Financial status: restricted fund balance in Water Capital Fund, Donner Lake Assessment
District Fund, Land Trust Fund and other water funds
• Cash status: General Fund and Facilities Fees Fund
• Water System Status: 180 leaks per year (all over District), increased maintenance and
operational cost, major pipeline replacement needed, aging system in older part of District
• Solutions (pros and cons of each):
o status quo
o pay as you go
o long/short term financial solution
■ Issue Certificate of Participation (COP)
■ 6% rate increases in 2007 and 2008
■ Donner Lake Surcharge $6.65
■ Repayment of COP: Facilities Fees, Surcharge, rates
■ 2006-2011: funding for COP & Reserve
■ 2012-2021 possible transition to Pay as you go
1 Minutes: July 5, 2006
PUBLIC HEARINGS - AT 7:00 PM OR AS SOON THEREAFTER AS POSSIBLE THE FOLLOWING
PUBLIC HEARINGS WILL BE HELD FOR THE PURPOSE OF RECEIVING WRITTEN AND OR
ORAL COMMENTS FROM MEMBERS OF THE PUBLIC REGARDING:
a) Adoption of an ordinance increasing the District's water rates.
b) Adoption of an ordinance establishing a billing surcharge applicable to
Donner Lake customers.
c) Adoption of resolutions setting standby charges on vacant parcels for the 2006-2007
fiscal year.
Duke Ackerman, Tahoe Donner:
No doubt the PUD had revenue and replacement needs. The question is how all this occurred.
Because rates from a consumer standpoint of a residential area. — he pays 6 times more here than at
his home in Palm Desert where he has a swimming pool, citrus trees and large property- pay half
monthly rate that he pays here for a third of the water. He is not here 5 months of the year, yet they
pay the same rate for not using water. He thinks everyone ought to share in pipeline replacement
cost. The burden should not be on these seasonal people who are paying full bore as if they were
here all the time. He has 2 suggestions: contact other similar water districts with similar setups and
geographics and see what efficiencies they incorporate; and meters- if the PUD cannot install on all
customers, what about placing on part time residents and use to measure when residents not there.
Or at least have something as with other facilities when not using the service, say a seal off or shut
down that is paid for and pay for rehooking.
�.. Pat Davison/CATT:
Letter: why no water reserve fund, zero balance in Facilities Fee account once Brockway Pipeline
project is completed this year, why no decrease in existing operations being proposed as an
alternative to fund the reserve, certain expenditures in COP will not last lifetime of 30 year debt and
request list of street names to explain $12.3 million pipeline replacement.
Jack Kashtan. Donner Lake:
Glad to talk about paying for water rather than not having any water at all. He is aware that customers
must pay for water infrastructure. Flat fee makes sense. It does not make sense however to now pay
a surcharge when Donner Lake already pays an assessment. Seems unfair to pay for other pipes to
be replaced. Makes sense for other neighborhoods to pay for their pipe replacement as Donner Lake
did by way of an assessment.
Bruce Douglas, Tahoe Donner HOA board:
Concern about increases and future increases. 80% of Tahoe Donner homeowners are the same as
Duke, part time. He wants to be sure to go forward to ensure future capacity and capabilities. But do
not want to overburden membership. Agrees with concern of CATT- about making sure the public
notified in timely manner. Especially when so many Tahoe Donner residents live off the hill- get the
word out to them- so they can show up and voice an opinion.
What is in store for commercial? Tahoe Donner is a very large user of PUD services.
Marion Celava, Glenshire/Devonshire HOA President:
Express concern of adoption of ordnances. Continue discussion before making decisions, so the
public is allowed further time to ask questions and can get more information.
2 Minutes: July 5, 2006
Rolf Godon:
In winter, the PUD board discussed the last rate increase. Similar questions raised- he had looked at
other local water agencies and their charges and the rates were less than the PUD. Repair versus
replacement- question why couldn't a bad piece of pipe with clamps be dug up and be replace with a
new piece of pipe if cannot afford to replace the whole thing. General fund monies spent on
Broadband- is some of deficit related to the 2 million dollars spent on BB? Seems that water rates
base should include a prorated long term cost of maintenance and repair so it is a pay as you go.
Then the PUD would not face a shortfall- plan into water rates all along. When the PUD took over
Glenshire and Donner Lake—did this subject all residents to a huge outlay to bring their systems up to
par. Or is Glenshire also paying extra?
Mr. Godon also asked why he has to pay the standby charge for his empty lot.
Melissa Gramson, Donner Lake:
Donner Lake surcharge? Do any other areas have a surcharge? She has questions on presentation
numbers: Slide 7 shows assessment district of 3.2 million, negative 4.1 million for Donner lake
assessment and Glenshire- could you provide a breakdown? Why is this not taken out of Donner Lake
assessment fund (why a big balance)? Why is Donner Lake asked to pay for other old pipes in places
all over the district? Melissa asked about Slide 22 which refers to long term financial solution- a
portion to be paid with facilities fees on an annual basis. Melissa said it still seems like Donner Lake is
being penalized by having to pay not only a surcharge, but the 6% rate increase.
Rick Cooper, Truckee resident:
Kim Sczcurek said the reserve fund will accumulate over 5 years. Mr. Cooper asked if the 3% would
be reduced at that time?. Mr. Cooper asked when the surcharge would be done. Mr. Cooper stated
that Donner Woods (Donner Lake) has newer pipeline- so the assessment is less. Would this newer
pipeline affect the surcharge amount for the Donner Woods customers?
Emilie Kashtan, Donner Lake:
She thanked the PUD for fixing the Donner Lake water system. She wants to make sure the PUD is in
financial health. In January 04, the Donner Lake rebuild was estimated to cost 13.6M (plus there was
an additional 75K for the condemnation). How did the surcharge go up from $4.60 to $6.65? Emilie
knows there were additional charges/change orders on the capital improvement district which benefits
new customers and developers. This cost should not be born by the people of Donner Lake. This was
not part of the original deal. There are other loose ends which she will discuss at another meeting. Are
Del Oro property sales going to defray cost of 1.4 million? Emilie said to keep equitable: a $6.65
surcharge plus an additional 6% rate increase is hard on Donner Lake. She feels the surcharge plus
rate increase is harsh for Donner Lake as they are taking a big hit on tax dollars already. She knows
the PUD needed to fix the Donner Lake system. Emilie looks at equitability and feels maybe custom-
ers people having pipes fixed need to shoulder that burden. And not shoulder on Donner Lake.
Juanita Schneider, Donner Lake:
People at Donner Lake feel they are put upon by paying for pipeline replacements in Tahoe Donner
when they are already paying for their own.
Director Aguera moved and Director Thomason seconded, a motion to keep the Public Hearings for
the Rate Increase and Donner Lake surcharge open until the special meeting on July 13, 2006.
ROLL CALL: All Directors, aye. SO MOVED.
This public hearing was then closed.
3 Minutes: July 5, 2006
�- ACTION ITEM
CONSIDERATION OF RESOLUTIONS SETTING WATER AND ELECTRIC STANDBY CHARGES
AND REQUESTING THAT NEVADA AND PLACER COUNTIES COLLECT STANDBY FEES ON
THE COUNTY TAX ROLLS.
Director Sutton moved and Director Aguera seconded, a motion to adopt a resolution Continuing and
Fixing Electric Standby Charges for Fiscal Year 2006-2007.
ROLL CALL: Director Taylor, absent; All other Directors, aye. SO MOVED.
Director Sutton moved and Director Thomason seconded, a motion to adopt a resolution Continuing
and Fixing Water Standby Charges for Fiscal Year 2006-2007 with a modification to the language
excluding Donner Lake and Glenshire from the water standby charges.
ROLL CALL: Director Taylor, absent; All other Directors, aye. SO MOVED.
Director Sutton moved and Director Aguera seconded, a motion to adopt the resolution Fixing and
Placing Electric and Water Standby charges on District Tax roll for Collection by the County of
Nevada and the resolution Requesting Collection of Electric and Water Standby Charges on Placer
County Tax Rolls.
ROLL CALL: Director Taylor, absent; All other Directors, aye. SO MOVED.
CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION: SECTION 54956.9. A
�. GRIEVANCE FILED BY IBEW LOCAL 1245 ON BEHALF OF DENNIS SANCHEZ
There was no reportable action.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 11:01 PM.
TRUCKEE NNE P BLIC UTILI ISTRIQT
J. Ro ig, President
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Prepared by f Lf dal
Barbara Cahill, Deputy District Clerk
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4 Minutes: July 5, 2006