HomeMy WebLinkAbout2007-04-04 Min - Board REGULAR MEETING
April 4, 2007
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 7:00 PM in the TDPUD Board room by President Taylor.
ROLL CALL: Directors Joe Aguera, Ron Hemig, Patricia Sutton, Tim Taylor and Bill Thomason were
present.
EMPLOYEES PRESENT: Ed Taylor, Peter Holzmeister, Alan Harry, Scott Terrell, George Caballero,
Joe Horvath, Mary Chapman, Jessica Wilson, Neil Kaufman, Steve Hollabaugh and Barbara Cahill
CONSULTANTS PRESENT: Scott Barber, Steve Oldham, Glenn Merron, Steve Gross, Scott
Tomashefsky and Dave Reynolds.
OTHERS PRESENT: Frank and Juanita Schneider, Beth Ingal, Bob Johnston, Neil Mock, Ron Colby,
Christine Stanley, Ellie Hyatt, Pat Waite, Dan Dickerman, Rolf Godon, Craig Meacham, Joni Crittenden,
Susan Lindstrom and 4 other members of the public.
PUBLIC INPUT
Beth Ingal of the Truckee Climate Action let the Board know that their organization got a $10,000 grant
from the Community Foundation for a change out light bulb program. She also handed out a flier for
National Day of Climate Action on April 14 at the Truckee Regional Park.
Robert Johnston asked that the agenda and items be posted on the TDPUD web site.
Neal Mock wants an adequate compliance report on AB1890 and SB1037. How doe the District plan to
achieve compliance? He would also like counsel legal opinion.
SPECIAL BUSINESS ITEM
DISCUSSION OF THE STATUS OF THE DISTRICT'S BROADBAND BUSINESS PLANNING
PROCESS This item involves a discussion of the status of plans for deployment of a broadband
system in Truckee. No formal Board action is contemplated.
Counsel Steve Gross gave an update on Cequel III Communications (previously SuddenLink) V.
LAFCo. The Third Appellate District Court of Appeal of the State of California denied Cequel's appeal
and stated Truckee Donner PUD can provide broadband services. This document has been filed and
will be final in 30 days. Cequel then has 10 days to petition to the California Supreme Court. If Cequel
petitions, there will be another 60 day delay.
Steve Oldham and Scott Barber of SureWest gave a presentation:
• SureWest is an integrated communications provider in the greater Sacramento region: telecom,
broadband and wireless
• Diversification path timeline showing how the company has continually changed to meet the
needs of customers and shareholders
• Telecom: graphs show access line trends and financial performance
• Broadband- out of territory: SureWest continues to lead the industry in FTTH technology and
customer adoption
o Triple play capable
o Penetration of 23.5% with 23,600 customers
o Significant growth potential
1 Minutes: April 4, 2007
• Growing Revenues: pie charts show the revenue composition and growing broadband segment
,. • Penetration cycle
• Technology Advantage
• Importance of Hyper-speed data
0 40% increase in households with broadband service
0 73% of US households connected to internet
0 42% US adults have a high speed internet connection at home
0 35% internet users who have posted content to the internet
Public input:
• Impressive figures- what are the projections for the future
• Want broadband implemented
• What is SureWest's service level agreement and response time- guarantees
• Is the PUD still going to put in the hardware and system?
• Who pays the 24 million to build the system?
• The recent survey was not very exciting
• The penetration market is different in Truckee as the number of homes per mile is less than in
Sacramento area
Board comments:
• Excited over this program
• TDPUD should continue discussion with SureWest
• See this as an opportunity- there must be some joint advantage
• PUD will provide the infrastructure and own the system
• The survey showed there is still enough customer interest
.--- • Would SureWest provide all the services?
• Does SureWest replace Eagle Broadband?
• Would like SureWest to make an agreement to get the 3million back that has been spent by the
District to date
• Interested in having the District partner with someone
• Would be good to get SureWest as a provider
• Has SureWest gone into a dispersed area where homes are not close together?
• SureWest could help the PUD to fine tune the way to build our system.
• Many businesses and home businesses can benefit from this
• Assume SureWest has done their homework that partnering with PUD is a good idea
The Board agreed that staff could begin discussions with SureWest and bring back solid information for
the Board to consider.
CONSENT ITEM
Director Sutton asked that all three consent items be placed under action items.
ACTION ITEMS
CONSIDERATION OF A CONTRACT FOR THE PROVISION OF CONSTRUCTION PHASE EN-
VIRONMENTAL MONITORING SERVICES. This item relates to securing the services of a firm to
monitor and report on compliance with environmental regulations during the summer of 2007
associated with the District's water pipeline replacement and Fibreboard Well projects.
Director Hemig moved and Director Aguera seconded, a motion to approve the proposal from Inland
Ecosystems for construction phase environmental monitoring for summer 2007 in an amount not to
exceed $28,976.00
ROLL CALL: Director Sutton, no (requested item placed in a meeting as closed session regarding this
topic- has to do with the performance of consultants); All other Directors, aye. SO MOVED.
2 Minutes: April 4, 2007
CONSIDERATION OF A CONTRACT FOR THE PROVISION OF GEOTECHNICAL TESTING
SERVICES This item relates to securing the services of a firm to ensure that soils are properly
compacted and asphalt is properly placed at District contracted construction sites.
Director Hemig moved and Director Aguera seconded, a motion to approve entering into a new Task
Order with Converse Consultants to perform geotechnical testing services for summer 2007 at an
hourly rate of $65, in an amount not to exceed $27,681.00.
ROLL CALL: Director Sutton, no; All other Directors, aye. SO MOVED.
CONSIDERATION OF APPROVING THE TRANSFER OF FUNDS FROM WATER RESTRICTED
FUNDS TO THE WATER GENERAL FUND This item involves transferring assessment district
funds on deposit in restricted funds to reimburse the water department general fund for mainte-
nance projects completed in Ponderosa Palisades Number 4 and the Sierra Meadows Number 3.
Director Aguera moved and Director Thomason seconded, a motion to authorize staff to:
• Withdraw the balance of the Ponderosa Palisades #4 Improvement Fund in the amount of
$890.72 plus accrued interest to reimburse the water department general fund for water line
repairs.
• Withdraw the balance of the Sierra Meadows 3 Improvement Fund in the amount of $5,228.94
plus accrued inters tot reimburse the water department general fund for water line repairs.
ROLL CALL: All Directors, aye. SO MOVED.
CONSIDERATION OF A RESOLUTION ADOPTING A CODE OF CONDUCT DEFINING BOARD
MEETING PROCESS This item involves possible adoption of a Code of Conduct designed to
provide orderly structure to the management of Board meetings.
Director Hemig moved and Director Aguera seconded, a motion to approve the resolution establishing
a Code of Conduct for the Board of Directors, removing the paragraph "Directors will endeavor, when-
ever possible, to submit questions on Board agenda items prior to the meeting in order for staff to be
prepared for and able to respond at the meeting. Any clarifications of technical questions that can be
readily answered should be handled prior to the meeting".
ROLL CALL: All Directors, aye. SO MOVED.
CONSIDERATION OF AN ORDINANCE INCREASING THE SALARY OF THE GENERAL
MANAGER. This item relates to a review of the salary of the General Manager and implementa-
tion of findings from the compensation survey conducted by Koff & Associates.
Director Thomason moved and Director Hemig seconded, a motion to adopt the amended salary scale
for the General Manager per the survey performed by Koff &Associates.
ROLL CALL: Director Sutton, no; All other Directors, aye. SO MOVED.
Director Hemig moved and Director Aguera seconded, a motion to adopt the ordinance stating the
General Manager amended salary scale and place the General Manager at Step 1 $147,430.00.
ROLL CALL: Directors Sutton and Thomason, no; All other Directors, aye. SO MOVED.
CONSIDERATION OF A CONTRACT CHANGE ORDER MO2007-31 AND A RESOLUTION
ACCEPTING THE OLD GREENWOOD WELL PROJECT AND ISSUING A NOTICE OF COMPLE-
TION. This matter involves actions to complete the Old Greenwood Well project by approving a
contract change order and formal acceptance of the new well with required legal notifications.
Director Hemig moved and Director Aguera seconded, a motion to authorize Contract Change Order
No. 1, in the amount of $83,861.00 payment to WDC Exploration & Wells from the District, bringing the
revised contract amount to $578,391.00 for the Old Greenwood Production Well.
ROLL CALL: All Directors, aye. SO MOVED.
3 Minutes: April 4, 2007
Director Hemig moved and Director Aguera seconded, a motion to adopt a resolution accepting the Old
Greenwood Production Well project as complete and authorizing the filing of the Notice of Completion.
ROLL CALL: All Directors, aye. SO MOVED.
CONSIDERATION OF CONSTRUCTION OF A POWER LINE ON PIONEER DRIVE AT DONNER
LAKE This item involves deciding whether to construct an electric distribution line at Pioneer
Drive underground versus overhead in response to a request submitted by customers in that
neighborhood.
Susan Lindstrom read from a letter drafted by the Pioneer/Denton/Reed Property Owners of Donner
Lake and provided number of petitions asking the PUD to either explore an alternative route for the new
overhead line or underground the new line.
Craig Meecham thought the PUD had a policy to underground when possible and asked how the PUD
can approve other underground lines. Overhead lines reduce property values.
Joan Crittenden wonders about the procedure as to staff and approval of projects. The Board seemed
to be surprised when the Pioneer/Denton/Reed residents first brought this concern to the Board in
December.
Director Hemig moved and Director Sutton seconded, a motion to direct staff to proceed with the
construction of an underground distribution line on Pioneer Drive between Denton and Reed Avenues.
ROLL CALL: All Directors, aye. SO MOVED.
CONSIDERATION OF APPROVING A CONTRACT FOR PURCHASE OF POWER FROM THE
STAMPEDE DAM HYDROELECTRIC GENERATION PLANT This item involves approving a
contract with the Western Area Power Administration for delivery of hydroelectric power
generated at the Stampede Dam to the TDPUD electric system.
Director Sutton moved and Director Thomason seconded, a motion to adopt and authorize the Board
President to sign the Contract for Energy Exchange Services with the Western Area Power
Administration for the Stampede Energy.
ROLL CALL: All Directors, aye. SO MOVED.
WORKSHOP ITEMS
DISCUSSION OF THE DISTRICT'S PUBLIC BENEFITS PROGRAM This item relates to a
discussion of options available to the District to comply with the state mandated public benefits
program
Counsel Steve Gross read from his memorandum regarding public benefits AB 1890 and AB 995 and
their requirements of the District under this legislation. Part of Mr. Gross's memo covered the provisions
of the law and part was analysis of assertions and implications under the legislation:
• Must receive and spend 2.85%of power revenues annually on public benefits programs
• Must segregate Public Benefits funds it collects into a separate account
• Must note on customer bills that 2.85%of their power bill is going to Public Benefits
• Must spend Public Benefits funds in the year it receives the funds
• Must spend Public Benefit revenues in a way specified by the legislature
4 Minutes: April 4, 2007
Scott Tomashefsky, Northern California Power Agency, gave a presentation titled Understanding Public
Benefits:
• Cost Pressures: impact of increased legislation and regulation
• Benefit programs: required by law, spend 2.85% of sales revenues, unspent funds carried over
to subsequent budget year, Public Owned Utilities have flexibility in how dollars are spent
• Benefit programs- general findings: energy efficiency is primary focus, renewable energy
expenditures target operational efficiency, Investment Owned Utilities spend majority of benefits
on low income rate assistance
• Benefit programs checklist: legal requirements, Board needs to develop goals and objectives
(collaborate with NCPA), NCPA & members are working on common approaches
• Effects of environmental polices on utility costs
• Managing public benefits: expand energy efficiency & renewables programs, must fund Ca.
Solar Initiative, must budget energy efficiency program AB2021, more regulatory reporting
• TDPUD public benefit status report
o $3.1 Million in expenditures since program inception
o Energy efficiency is major component of program: water well & pumping facility
improvements, customer rebates account for 5%of total, admin & marketing 37% of total
o Contribution to renewables to grow with recent adoption of Renewable Portfolio Standard
goals.
• TDPUD public benefit key observations: comply with law, meeting spirit of AB1890 for more
than a decade, energy efficiency remains key component of PUD public benefits portfolio
DISCUSSION OF THE DISTRICT'S CONSERVATION PROGRAM This item related to a
discussion of a draft power conservation program.
Scott Terrell gave a presentation of energy conservaiton programs:
• Lighting program
o Residential rebate at $1/bulb: 10 bulbs per household and 5 per multi-family unit
o Commercial rebate: High Efficiency lighting retrofits- 1/3 project cost
• Appliance program: add dishwashers & increase rebate amount depending on the model.
• Water heating program
• Space heating program
• Building Program: envelope testing or leak mitigation, distribution testing or leak mitigation
• Summary of costs
o Lighting $33,000
o Appliance $13,000
o Water Heating $ 5,000
o Space Heating $15,000
o Building $17,500
o Program Marketing $35,000
Total $118,500
Public comment:
• How does the PUD analyze water to the customer versus leaks
• More dollars for conservation education
Board comment:
• Board should be a party to how public benefits are expended
• Lighting program- treat residential and businesses the same
• Need a better way to administer the lighting rebate program
5 Minutes: April 4, 2007
DISCUSSION OF THE PROCESS FOR ADOPTING WATER AND ELECTRIC STANDBY CHARGES
,. This item involves a discussion of the process for approving water and electric standby charges
and possible expansion of water standby charges to include the Donner Lake and Glenshire
areas.
Counsel Gross presented a memo addressing the following questions per the law and analysis:
• Are standby fees subject to Proposition 218's stringent requirements?
• If standby charges are subject to Prop 218, what procedures must the District follow to increase
standby charges or implement a new standby charge?
• If the appropriate procedures are followed and the initiative is defeated, are the original standby
charges still valid?
• When a property is subdivided, can both parcels be charged standby fees independently?
Neil Kaufman gave a standby presentation:
• Charge contributes to operation and maintenance of electric and water systems that benefit
vacant properties where properties are in proximity of electric and water service
• Past practice: implemented in 1975/water standby increased in 1991
• Donner Lake acquired in 2001 and Glenshire Water acquired in 2002
• Water standby was imposed to newly acquired areas in 2003 and refunds began in 2006
• Standby revenue: 2006 actual and 2007 budget
• Applicable laws: Uniform Standby Procedures act- Gov Code 54984 and Proposition 218
• Future Options
o No change
o Eliminate standby charge
o Impose new standby charge District wide
o Impose new split standby charge
o Impose new standby charge at Donner Lake and Glenshire only
• Conclusions
o No easy fix
o Unlikely new water standby charges would be approved
Board comment:
• Business as usual
• How many lots are subject to this charge?
• What is the cost to maintain the system?
• Low probability of a yes vote
• Status quo- keep collecting
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 1:35 AM
UCKEE UBLIC UTILITY DISTRICT
Tim F. Taylor, id t
Prepared by
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Barbara C ill, Deputy District Clerk
6 Minutes: April 4, 2007