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HomeMy WebLinkAbout2006-07-13 Min - Board SPECIAL MEETING July 13, 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 special 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, Tim Taylor and Bill Thomason were present. EMPLOYEES PRESENT: Ed Taylor, Kim Szczurek, Nancy Waters, Steve Hollabaugh, Peter Holzmeis- ter, Neil Kaufman, Jessica Wilson, Mary Chapman and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Frank and Juanita Schneider, Pat Davison, Pat Waite, Dennis Sanchez, Rolf Godon, Christine Stanley, Geoff Stevens, Emilie Kashtan, Bruce Douglass, Kirk Short, Chuck Colton and 4 members of the public. PUBLIC INPUT Pat Waite of IBEW 1245 wanted to make sure the Board was aware of a letter regarding the closed session item. 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, com- plete Donner Lake System reconstruction plan, replenish internal borrowings and refinance ex- isting 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 July 13, 2006 minutes 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. Geoff Stevens of Glenshire Residents Association thanked Steve Hollabaugh for attending the recent Glenshire board meeting. He said their board agrees with the water reserve fund, but they struggle with how the District ended up this way. They want the District to consider all sorts of alternatives and address this situation so there is not repeat history. Chuck Colton is overwhelmed by the rate increase and is not really sure if the reserve fund will pan out. He has never seen the water rate decrease. He knows repairs are needed. He thinks the District should research ways to fund the reserve instead of a rate increase. Pat Davison of CATT is disappointed that the 6% cannot be split and just have a 3% increase for reserves. CATT has a concern of the incremental increase for operating costs with no reduction of expenses. They want some clarification that the current rate increase of 2% went to the reserve fund and will not be just part of the general fund. CATT wants a clarification as to why operating costs would cover pipe material and paving — but should be part of the pipeline replacement. CATT has a desire to work with the District and look at the facilities fees structure intent and make sure the fund does what it is supposed to do. They also want to discuss the intent of the Land Sales Trust Fund. CATT would like the District to create a reporting mechanism that would enable the public to see what is being done on these important issues. Bruce Douglas, with Board of Tahoe Donner Association, would like to know more about the Land Sales Trust Fund and its uses. Is the 6% increase in 2007 and 2008 required to get the loan? He wants the District to move ahead in a fiscally responsible manner. b) Adoption of an ordinance establishing a billing surcharge applicable to Donner Lake Customers Jack Ivory built his home in Donner Lake in 1982. He said when the PUD took over, the rates doubled. He pays more for water than all other expenses. There are three times the people in Truckee now- so why does the District have to raise rates? Emilie Kashtan appreciates good water and financial health. She understands it was going to take 13 million dollars to repair the Donner Lake system. But it seems unfair that Donner Lake had to bring their system up to standards and now other parts of the District system are failing, yet Donner Lake customer are expected to help with the replacement. ACTION ITEMS CONSIDERATION OF ADOPTING WATER RATE ORDINANCE Director Hemig moved and Director Taylor seconded, a motion to adopt the ordinance increasing water rates by six percent on January 1, 2007 sand six percent on January 1, 2008. ROLL CALL: Director Sutton and Thomason, no; All other Directors, aye. SO MOVED. 2 July 13, 2006 minutes CONSIDERATION OF ADOPTING DONNER LAKE SURCHARGE ORDINANCE Director Hemig moved and Director Taylor seconded, a motion to adopt the ordinance establishing a monthly billing surcharge applicable to the Donner lake area. ROLL CALL: Director Thomason, no; All other Directors, aye. SO MOVED. CONSIDERATION OF RETAINING BOND COUNSEL TO ASSIST IN ISSUANCE OF WATER SYSTEM CERTIFICATES OF PARTICIPATION. Director Aguera moved and Director Taylor seconded, a motion to retain David Casnocha of the Stradling Yocca Carlson and Rauth law firm as bond counsel in the issuance of water system Certificates of Participation. ROLL CALL: Director Sutton and Thomason, no; All other Directors, aye. SO MOVED. CONSIDERATION OF A PROPOSAL FROM MCDONALD PARTNERS TO PERFORM SERVICES RELATED TO ISSUANCE OF WATER SYSTEM CERTIFICATES OF PARTICIPATION. Director Aguera moved and Director Taylor seconded, a motion to approve the proposal from McDonald Partners to perform services related to issuance of water system Certificates of Participation. ROLL CALL: Director Sutton and Thomason, no; All other Directors, aye. SO MOVED. CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION: SECTION 54956.9. A GRIEV- ANCE FILED BY IBEW LOCAL 1245 ON BEHALF OF DENNIS SANCHEZ A motion was made to uphold the decision of management to terminate Mr. Sanchez's employment. ROLL CALL: Director Sutton and Thomason, no; All other Directors, aye. SO MOVED. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 10:52 PM. TRUCK DONNE UBLIC UT7Z DISTRICT J. R mig, P e$ident II Prepared by Qr- ( ✓� Barbara Cahill, Deputy District Clerk bhc 3 July 13, 2006 minutes JW TRUCKEE DO E .IC Public District Ordinance No. 2006 - 06 AMENDING THE WATER MONTHLY RETAIL RATES WHEREAS the District is engaged in construction of various water system capital projects during the next five years; and WHEREAS to provide funds for this water capital program the District intends to secure long- term financing through issuance of Certificates of Participation; and WHEREAS a analyses of the District's financial status demonstrates that it does not have an adequate cash reserve; and WHEREAS the financial markets look for financial strength in a water utility as a condition for lending money; and WHEREAS the Board has been advised that a six percent water rate increase implemented on January 1, 2007 and again on January 1, 2008 would provide a revenue stream to establish a cash reserve and cover increasing operating costs: and WHEREAS, on July 5, 2006 and July 13, 2006 public hearings were held to receive comments from the public concerning a proposal to adopt such rate increases; and NOW, THEREFORE, BE IT ENACTED by the Board of Directors of the Truckee Donner Public Utility District as follows: Section 1. Effective January 1, 2007 following monthly water rates shall be effective. Residential Water Rates - The Domestic Water Rates for single family homes, individual condominium units and townhouse units shall relate to the pressure zone in which said service is located. The Domestic Flat Rate Base for all zones shall be the fixed monthly rate of $48.57. The appropriate zonal pumping costs shall be added to the base monthly rate yielding the appropriate flat zonal rates as follows: Zone Charge Zone 1 51.38 Zone 2 53.85 Zone 3 54.99 Zone 4 56.23 Zone 5 56.96 Zone 6 57.43 Zone 7 60.28 Zone 8 62.09 Zone 9 62.80 Zone 10 66.69 Zone 11 70.42 Ordinance 2006-06 1 Commercial Water Rates - The following Commercial Rates shall apply to all duplex and other multiple dwelling units, trailer parks, and other commercial establishments: Size Gallons Per Service Month Water Rate Allowance 3/4" 6,000 42.43 log 11,000 50.61 1 1/4" 17,000 60.91 1 1/2" 24,000 71.14 2" 43,000 97.79 3" 96,000 163.71 4" 171,000 234.24 Water used in any month above the allowance will be charged as follows: Gallons Charge 0 to 16,000 gallons 1.89/1,000 16,000 - 56,000 gallons 1.49/1,000 56,000 - 96,000 gallons 1.19/1,000 96,000 and above .97/1,000 The following Zone Charge per 1,000 gallons shall be added for all water used: Zone Charge Zone 1 $ .33 Zone 2 .61 Zone 3 .76 Zone 4 .91 Zone 5 .98 Zone 6 1.06 Zone 7 1.40 Zone 8 1.59 Zone 9 1.67 Zone 10 2.13 Zone 11 2.58 Until meters are installed, the Commercial Flat Rate shall be based on the foregoing allowance, and the Zone Charge shall be levied against the maximum number of gallons in said allowance. Ordinance 2006-06 2 Small Residential Unit Rate - Domestic water rates for single family homes, individual condominium units and townhouses units under 300 square feet with no provisions for washer/dryer, dishwasher or outside hose bib, no improved landscaping needing water other than that provided by nature, no leaking plumbing fixtures as determined by District staff. The Domestic Flat Rate Base for all zones shall be the fixed amount of $34.57. The appropriate zonal pumping costs shall be added to the base monthly rate yielding the appropriate flat zonal rates as follows: Zone Rate Zone 1 $37.37 Zone 2 39.85 Zone 3 40.99 Zone 4 42.24 Zone 5 42.96 Zone 6 43.43 Zone 7 46.28 Zone 8 46.92 Zone 9 48.79 Zone 10 52.69 Zone 11 58.76 Section 2. Effective January 1, 2008 following monthly water rates shall be effective. e� Residential Water Rates - The Domestic Water Rates for single family homes, individual condominium units and townhouse units shall relate to the pressure zone in which said service is located. The Domestic Flat Rate Base for all zones shall be the fixed monthly rate of $51.48. The appropriate zonal pumping costs shall be added to the base monthly rate yielding the appropriate flat zonal rates as follows: Zone Charge Zone 1 54.46 Zone 2 57.08 Zone 3 58.29 Zone 4 59.60 Zone 5 60.38 Zone 6 60.88 Zone 7 63.90 Zone 8 65.82 Zone 9 66.56 Zone 10 70.69 Zone 11 74.64 Ordinance 2006-06 3 Commercial Water Rates - The following Commercial Rates shall apply to all duplex and other multiple dwelling units, trailer parks, and other commercial establishments: Size Gallons Per Service Month Water Rate Allowance 3/41' 6,000 44.97 1" 11,000 53.64 1 1/4" 17,000 64.57 1 1/2" 24,000 75.41 2" 43,000 103.66 Y 96,000 173.53 4" 171,000 248.30 Water used in any month above the allowance will be charged as follows: Gallons Charge .� 0 to 16,000 gallons 2.01/1,000 16,000 - 56,000 gallons 1.58/1,000 56,000 - 96,000 gallons 1.26/1,000 96,000 and above 1.03/1,000 The following Zone Charge per 1,000 gallons shall be added for all water used: Zone Charge Zone 1 $ .35 Zone 2 .64 Zone 3 .80 Zone 4 .97 Zone 5 1.04 Zone 6 1.13 Zone 7 1.49 Zone 8 1.69 Zone 9 1.77 Zone 10 2.26 Zone 11 2.73 Until meters are installed, the Commercial Flat Rate shall be based on the foregoing allowance, and the Zone Charge shall be levied against the maximum number of gallons in said allowance. Ordinance 2006-06 4 Small Residential Unit Rate - Domestic water rates for single family homes, individual condominium units and townhouses units under 300 square feet with no provisions for washer/dryer, dishwasher or outside hose bib, no improved landscaping needing water other than that provided by nature, no leaking plumbing fixtures as determined by District staff. The Domestic Flat Rate Base for all zones shall be the fixed amount of $36.64. The appropriate zonal pumping costs shall be added to the base monthly rate yielding the appropriate flat zonal rates as follows: Zone Rate Zone 1 $39.62 Zone 2 42.24 Zone 3 43.45 Zone 4 44.77 Zone 5 45.54 Zone 6 46.04 Zone 7 49.06 Zone 8 46.74 Zone 9 51.72 Zone 10 55.85 Zone 11 62.28 Section 3. If no protest is made pursuant to Public Utilities Code Section 16078, then the terms of this ordinance shall be effective thirty days after adoption by the board of directors of the District. Section 4. The Clerk of the District shall immediately cause a copy of this ordinance to be published in a newspaper of general circulation and posted in three places within the District. Section 5. The provisions of other Ordinances shall remain in effect to the extent that they do not conflict with this ordinance. PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at a meeting duly called and held within the District on the 13th day of July 2006 by the following roll call vote: AYES: Directors Aguera, Hemig and Taylor NOES: Directors Sutton and Thomason ABSENT: None TRUCKU DO R PUBLIC UTILITY DISTRICT By J President of the Board ATTEST: ;! Peter L. Holzmeister, Clerk of the Board Ordinance 2006-06 5 TRUCKEE DONNER Public Utility District Ordinance No. 2006 - 07 ESTABLISHING A MONTHLY BILLING SURCHARGE APPLICABLE TO THE DONNER LAKE AREA EFFECTIVE OCTOBER 1, 2006 WHEREAS the District acquired and reconstructed the Donner Lake water system; and WHEREAS the customers at Donner Lake who use the new water system and therefore directly benefit by is reconstruction are required to pay the cost of such reconstruction; and WHEREAS the Donner Lake Assessment District was formed to provide funding to pay the cost of reconstruction, but the assessment district revenues are not sufficient to pay the full cost; and WHEREAS the District intends to establish a monthly billing surcharge in the amount of $6.65 applicable to customers in the Donner Lake area to provide revenues to pay for the remainder of the cost of reconstruction; and WHEREAS, on July 5, 2006 and July 13, 2006, public hearings were held to receive comments from the public concerning the proposal to adopt such billing surcharge; NOW, THEREFORE, BE IT ENACTED by the Board of Directors of the Truckee Donner Public Utility District as follows: Section 1. Effective October 1, 2006 a surcharge in the amount of six dollars and sixty-five cents ($6.65) shall be added to the water bills of customers in the Donner Lake water system area. Section 2. If no protest is made pursuant to Public Utilities Code Section 16078, then the terms of this ordinance shall be effective thirty days after adoption by the board of directors of the District. Section 3. The Clerk of the District shall immediately cause a copy of this ordinance to be published in a newspaper of general circulation and posted in three places within the District. Section 4. The provisions of other Ordinances shall remain in effect to the extent that they do not conflict with this ordinance. PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at a meeting duly called and held within the District on the 13th day of July 2006 by the following roll call vote: AYES: Director Aguera, Hemig, Sutton and Taylor NOES: Director Thomason ABSENT: None