HomeMy WebLinkAbout2008-05-07 Min - Board REGULAR MEETING
May 7, 2008
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 6:04 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: Nancy Waters, Kathy Neus, Bob Mescher, Steve Hollabaugh, Craig
Beede, Rosanna Matlock, Neil Kaufman, Lauren Schaake, Michael Holley and Barbara Cahill
CONSULTANTS PRESENT: none
OTHERS PRESENT: Doug Grandy, Juanita Schneider and one other member of the public.
CHANGES TO THE AGENDA
General Manager Michael Holley asked that item No. 9, Review of the Draft Audit Reports for
2007, be pulled from the agenda.
PUBLIC INPUT
There was no public input.
DIRECTOR UPDATE
This item provides time for a Director to suggest/request new or previous items for fu-
ture agendas. (Each Director will be limited to three (3) minutes).
Director Sutton requested the Tree Trimming policy be placed as a workshop on the May 21
agenda.
CLOSED SESSION
CONFERENCE WITH LABOR NEGOTIATORS: SECTION 54957.6 OF THE GOVERNMENT
CODE. DISTRICT REPRESENTATIVE: MICHAEL D. HOLLEY; EMPLOYEE REPRESEW
TATIVE IBEW 1245.
No reportable action.
1 Minutes: May 7, 2008
ACTION ITEMS
APPROVE DISTRICT CODE TITLE 4, PERSONNEL This item involves approval of a reso-
lution to adopt the revisions to District Code, Title 4, Personnel.
Director Hemig moved and Director Thomason seconded, a motion to approve the revisions to the
District Code, Title 4 Personnel with a change in Section 4.12.8 Drug and Alcohol Workplace to
add the word "illegal" to the phrase "under the influence of drugs", subject to legal counsel review;
and adopt the resolution.
ROLL CALL: Director Sutton, abstain (extensive changes with existing policy- too comprehensive
with little attention for public input); All other Directors, aye. SO MOVED.
APPROVE A SIDE LETTER TO THE MEMORANDUM OF UNDERSTANDING WITH IBEW
LOCAL 1245 UNION This item concerns the outcome of the previous closed session
item regarding conference with Labor Negotiator
Director Hemig moved and Director Aguera seconded, a motion to approve and adopt the
proposed amendment to the Memorandum of Understanding.
ROLL CALL: Director Sutton, abstain (do not approve of the changes to go with binding arbitration
and changes in the Skelly Hearing process); All other Directors, aye. SO MOVED.
REVIEW OF THE DRAFT AUDIT REPORTS FOR 2007, WITH POSSIBLE ACTION. This
item relates to a presentation by the District's auditors regarding their findings in con-
ducting the audit for the District's 2007 financial statements.
Item pulled from the agenda.
ADOPT A RESOLUTION TO IMPLEMENT A CONSENT CALENDAR ON FUTURE BOARD
AGENDAS. This item concerns the adoption of a resolution to implement a Consent Cal-
endar.
Director Thomason moved and Director Aguera seconded, a motion to adopt the resolution regard-
ing the use of a Consent Calendar at future Board Meetings.
ROLL CALL: Directors Sutton and Hemig, abstain; All other Directors, aye. SO MOVED.
ANNEXATION OF MACHADO PROJECT INTO THE DISTRICT'S WATER SERVICE AREA
This item involves annexation Machado Project into the District's Water Service Area.
Director Hemig moved and Director Thomason seconded, a motion to adopt the resolution
requesting Placer county LAFCo to initiate annexation proceedings of the Machado Project (APN
080-270-038) into the District's Water Service Area
ROLL CALL: Director Sutton, abstain (believe the District should not do an annexation which is not
contiguous with property that was excluded); All other Directors, aye. SO MOVED.
WORKSHOPS
CONSERVATION COMMITTEE MONTHLY REPORT This item will be a presentation of
draft Chapters 6, 7 and 9 of the Water and Power Conservation Plan Report.
Doug Grandy, Conservation Committee Chair, went over the three draft chapters of the Water and
Power Conservation Plan. The Committee will release the entire draft report to the Board on May
2 Minutes: May 7, 2008
23, 2008. Mr. Grandy said the Committee is advisory and makes recommendations; it does not do
program development. The committee has enjoyed working with the PUD staff and compliments
the efforts of the Board.
• Chapter 6 (Analysis Methodology)
o How measures apply to the District
• Chapter 7 (TDPUD's Unique Load Profile)
o Looked at the PUD electric load over a year- weekend spikes and annual spike from
Christmas to New Years
o Conclusion: trying to reduce peak Kw would not have much value- go after raw Kw
usage
o Water usage increases 66% in the spring
• Chapter 9 (Conservation Measures Considered)
0 100 conservation measures are listed for both residential and commercial
o Other issues: how to apply and how to roll out a program
Board discussion:
• Load shape- good- PUD has nuances with winter peaks and patterns
• Are measures in a priority level?
• What is a phantom load?
• Good approach, sound information- translate to programs to implement
• Graphs are good
• Bring together in a package with plans and programs
• This confirms what District staff has been reporting- high demand from Thanksgiving to
spring- PUD peak is different that the rest of California
• Did you survey loads of utilities in similar snow areas?
• Good direction and look forward to the entire draft report
• Appreciate the time commitment
• Mold these three chapters into implementable programs that the PUD can take and move
forward
• Good data- want to see where you go from here
DISTRICT CODE, TITLE 3, FINANCE AND ACCOUNTING This item involves the discus-
sion of purchase power, risk management, rate stabilization.
Steve Hollabaugh gave a presentation of the revision of Chapter 3.06, Purchase Power:
• Last revised in 2003 with respect to the Constellation contract that ended 12/31/07
• District joined UAMPS Pool Project and entered into a number of contracts to make up a
diverse electric supply portfolio
• Electric Supply Procurement
o Resource mix that satisfies Renewable Portfolio Standard
o Contract for geothermal and wind generation backed by natural gas generation
o Future electric supply will be more diversified- more focus on risk management strategy
• Financial Goals
o Risk management and reserves should be looked at simultaneously
o Rate stabilization fund goal: currently maintain minimum balance of $1,000,000
o Rate stabilization fund recommendation: up to 3 months purchase power costs
$3,000,000
Board discussion:
• How long will it take to get a balance of $3,000,000 in the rate stabilization fund?
3 Minutes: May 7, 2008
• Section 3.06.4(E) Oversight- does the Administrative Services Manager do audits or just
review transactions?
• Do findings only go to the General Manager
• Do contracts still go to the Board for review and action- PUD has several contracts
reviewed and approved by the Board- do not want to see a different policy where Board
does not review the contracts.
• Rate stabilization fund meets emergency of unexpected event
• What about the electric reserve fund- if use this as the rate stabilization fund, would that
short change other areas of the budget?
• Important to have a different policy to accommodate risk in a comfortable way with a
diverse portfolio
• Commodity pricing- risk management and contract terms- what does this mean?
• Competitive Process- is it practical to get three or more quotes?
• Good to have a 3 month goal for rate stabilization
• The District has 16% renewable power
• The District does not have a long-term fixed rate contract now.
• Went from one contract with Constellation to juggling a number of contracts- risk manage-
ment is a real task- the policy will assist in doing this.
• Like Portfolio Performance and Value reporting-this is another big task
• Keeping a stable rate is tough to do- this revision helps to manage
• Agree with the $3,000,000 reserve
• When is Idaho Power debt paid off? Could those dollars be used to build up the rate sta-
bilization fund
D-NM NET METERING SCHEDULE UPDATE Revise Schedule D-NM, Domestic - Net
Metering Ordinance No. 2008-XX and Rescinding Ordinance No. 2000-01
Steve Hollabaugh described net metering: Net metering promotes grid-connected generation to
serve its on-site load. Net Metering only requires a meter capable of running backwards when the
generator produces energy and forward when the customer takes energy from the grid. Customer-
generator banks excess generation when the system produces more power than the customer
requires and are billed only for net consumption.
Mr. Hollabaugh continued with a presentation:
• Board implemented a solar generation program (SB1) that encourages customers to install
solar generation.
• Existing D-NM schedule allows no more than 10 kw for customer solar or wind production
systems to integrate into our electric system
• Ca. Assembly Bill 58 modified Net Metering program to include systems sized up to 1 Mg
• District has an application from a commercial customer for solar generation estimated
between 60 & 120 kw.
• Revise and rename existing schedule from D-NM to NM to include installation up to 1 MG
and clarify the billing description.
Board Discussion:
• This applies to both solar and wind
• A rate change ordinance will be after the public hearing on June 4
• Makes sense to me
• Is there a forecast of costs?
4 Minutes: May 7, 2008
The Board agreed to schedule a public hearing for June 4, 2008 for the Net Metering Schedule
Update.
UPDATE ON THE NATURAL-GAS, GEOTHERMAL AND WIND POWER GENERATION
CONTRACTS This item relates to Natural Gas Power Generation Contract, an update on
the Rye Patch Geothermal Project and possible future UAMPS Wind Projects.
Steve Hollabaugh gave a presentation:
• Payson Project (also known as Nebo Plant)
o Natural gas generation is a UAMPS project owned by UAMPS members
o This is an On-Peak (high load hour) generation source
o District needs natural gas to back future wind and geothermal
o City of Payson wants to sell a portion (4.118 MW) of their allocation
o The allocation can be handled through a pooling appendix initially starting June 16,
2008
o Cost of generation is dependent on natural gas prices & range from $60-90 per Mwh
o Steps to finalize a permanent entitlement share
■ Pooling appendix by City of Payson and TDPUD
■ Steps to ownership: submit offer to Payson project participants, negotiate, assign-
ment &assumption agreement/power sales contract and approval to take over debt.
■ All in cost of operating the transferred percentage- one time fee $164,287 based on
the 4.118 MW allocation
• Rye Patch Geo
o District signed power purchase agreement with Presco Energy in July 2007
o Geothermal generation plant has been off line for some time
o Presco plans to re-power the plant: transformer work, re-drill production well
o Earliest date for start-up is late 41h quarter 2008
• UAMPS Idaho Wind Project
o District is a participant in the Resource Project at UAMPS
o Currently in the study phase with an initial budget of$50,000
o Shows promise and good value estimated to have a capacity factor of 31%
o District interested in 6MW of the study phase (represents 2MW of out put generation)
Board discussion:
• Payson/ Nebo plant
o $164,287 is a one-time fee only?
o Is there a possibility that PUD may get less than 4MW?
o So this would be an ownership share with power at cost
o If we do not use the power, can we sell off?
o Will the Kw vary with the plant efficiency?
o Environmentally sound- natural gas is a common source of generation in California
o So the District assumes debt
o Are we going to get ownership share?
o Bring back as action item on June 4 for pooling appendix and then head toward
ownership share
• Rye Patch
o Is the District involved in any other projects?
• Wind Project
o Is the District only responsible for a portion of the $50,000 study phase
o Go forward with study phase
5 Minutes: May 7, 2008
TREASURERS REPORT
DECEMBER 2007, FINAL AND SEMIANNUAL REVIEW OF KEY RATIOS
a. December 2007, Final
No action taken- item to be moved to June 4 for approval after the audit report presentation.
b. Semiannual review of key ratios
CLOSED SESSION
CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO SECTION 54956.8
OF THE GOVERNMENT CODE. PROPERTY: 14630 GLENSHIRE DRIVE.
PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION
54957: GENERAL MANAGER
RETURN TO OPEN SESSION
No reportable action.
-„ ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 10:45 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Tim F. Taylor, President
Prepared by
Barbara Cahill.Deputy District Clerk
6 Minutes: May 7, 2008