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Home My WebLink About2008-06-18 Min - Board REGULAR MEETING June 18, 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 6:03 PM in the TDPUD Board room by President Taylor. ROLL CALL: Directors Joe Aguera, Ron Hemig, Tim Taylor and Bill Thomason were present. Director Patricia Sutton was absent. EMPLOYEES PRESENT: Sara Owens, Michael Holley, Ed Taylor, Bob Mescher, Neil Kaufman, Mark Thomas, Scott Terrell, Steve Poncelet and Joe Horvath CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Juanita Schneider, Joanna Walters, Doug Grandy and Phil Bjorkman PUBLIC INPUT There was no public comment. DIRECTOR UPDATE Director Thomason requested a presentation on video streaming. President Taylor introduced Steven Poncelet. CONSENT APPROVE SPECIAL TAX RESOLUTIONS: OLD GREENWOOD AND GRAY'S CROSSING COMMUNITIES FACILITIES DISTRICTS This item concerns requesting Nevada County to collect the special assessments for the Old Greenwood and Gray's Crossing Community Fa- cilities Districts on the Nevada County tax rolls. APPROVE DONNER LAKE ASSESSMENT DISTRICT RESOLUTIONS This item relates to the resolutions setting the assessment amount under the terms of the Donner Lake Assess- ment District Number 00-1 and authorizing Nevada and Placer Counties to collect the assess- ments on the County tax rolls. Director Hemig moved, and Director Aguera seconded, that the Board approve the consent calendar. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED ACTION ITEMS PURCHASE OF BACKHOE-LOADER This item concerns the purchase of a backhoe- loader. Director Hemig moved, and Director Aguera seconded, that the Board: , .. 1) Award the purchase of a John Deere 410J Backhoe/Loader to Pape Machinery for the amount of $104,558.88 (including tax$7,630.88 and Tire Tax $28.00). 2) Declare the 1987 John Deere Backhoe/Loader 410C S/N T0410 CG738166 (Unit 14) surplus along with 2 digging buckets. 1 Minutes: June 18, 2008 3) Accept Pape Machinery trade in value of $13,450.00 for the John Deere 410C S/N T041 OCG738166 (Unit 14) and two digging buckets. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED TREE TRIMMING CONTRACT BID AWARD This item concerns the award of a contract for Tree Trimming Services. Director Thomason moved, and Director Aguera seconded, that the Board find Harrison's Tree Service non-responsive with the District Contract; and award the Tree Trimming Contract to Loggers Unlimited, Inc. for an amount not to exceed $250,000 less monies previously expended for the Tree Trimming and Pole Clearing operations in the approved FY 2008 budget. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED AWARD OF A CONTRACT TO PERFORM A LEAK DETECTION AND CORRELATION STUDY This item concerns the award of a contract to perform a leak detection and correlation study. Director Aguera moved, and Director Thomason seconded, that the Board award a contract for a leak detection and correlation study to HD Utility Services Group for a total of $20,080 ($197.80 per mile for the leak survey work and $300 mobilization charge); contract not to exceed $24,000; and authorize the transfer of up to $24,000 from the COP funds to the Water Department General Fund to cover the cost of the contract. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED APPOINT A DISTRICT NEGOTIATOR FOR SIERRA PACIFIC POWER COMPANY- SALE OF CALIFORNIA PROPERTY This item involves the appointment of a negotiator(s) to represent the District in the sale of California Property by Sierra Pacific Power Company. Director Thomason moved, and Director Hemig seconded, that the Board appoint the General Manager, Michael D. Holley, as the District negotiator with Sierra Pacific Power Company- Sale of California Property. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED WORKSHOPS REVIEW OF WATER METERING FINANCING OPTIONS This item is a presentation and discussion of various financing options regarding residential metering. Neil Kaufman and Bob Mescher gave a presentation: • State mandate to install water meters and bill volumetrically • History o Residential customer are currently billed a flat rate o SB 229 (1992) requires meters on new connections o AB2572 requires billing SB 229 connections by 2010 and installing meters and billing all customers volumetrically by 2025 o Full implementation will cost approximately $10 million (today's cost) • Three Phases to AB 2572 Compliance o Phase 1- Pilot program ■ Cost$266,000 ■ Install or upgrade approx 500 meters with Automated Meter Reading technology (AMR) by No. 2008 2 Minutes: June 18, 2008 ■ Gather customer consumption an installation cost data ■ Based upon results, estimate total cost of Phase 2 and 3 and validate AMR selection o Phase 2 ■ Cost of $2 million to meet first AB 2572 deadline compliance in 2010 ■ Install or upgrade approx 5,546 meters in 2009 using AMR 4ase Begin volumetrically billing Phase 1 and 2 customers by January 1, 2010 o 3 ■ Cost of $7.7 million to meet AB 2572 deadline compliance in 2025 ■ Install approx 4,134 meter boxes and 6,339 meters utilizing AMR ■ Begin volumetrically billing all customers by January 1, 2025 • Timing o Phase 1: 2008, Phase 2: 2009 and Phase 3: delayed, gradual and expedited • Funding sources o Board designated funds o Loans (rates to repay loans) o Rates (rates to "pay as we go") • Financial Assumptions o 3.5% inflation of material and labor o Interest rates of 4.29%for 10 year loans and 5.46%for 15 year loans o Fixed surcharge starting in 2009 continuing for the term of the repayment o $1,272,000 of reserves used • Estimated charge per customer- each has a pro and a con o Delayed implementation: $4.87 per month for 16 years n o Gradual implementation: $5.39 per month for 14 years o Expedited implementation: $5.88 per month to cover a 15 year/$9.6 million external loan • Time Line o Select implementation plan: June 2008 o Develop RFP/Bid package for AMR System: June/July 2008 o Bid and purchase AMR system: July/August 2008 o Implement pilot program and bring AMR on line: August to October 2008 o Install AMR system on remaining meters for AB2572 compliance: summer 2009 o Develop alternative rate structures: Summer 2009 o Begin sample billing based on meter reads: January 2010 o Full implementation of metered billing for customers with meters: January 2011 o Install meters on remaining customers- to be determined Public input: • Rate design/structures recommendations • Extend the Conservation Committee or start a new committee Board discussion: • Delayed start of metering would not work - some people metered and some not • Expedited manner is best to avoid dragging out • In favor of not acquiring additional debt- in favor of gradual- financial difference between delayed and expedited • In favor of expedited plan- inflation of materials and labor- better to get done sooner. • How many meters would be installed each year for the expedited? • Not in favor of debt either, but am a bigger fan of getting this done with the expedited plan. • Get an analysis of water usage • Expedited would be good for conservation • Need an action item for meter selection time line 3 Minutes: June 18, 2008 • Get the meters installed; do an internal rate study; collect raw data; cost of service analysis; start to charge customers; projections for 2021 • Do a gradual increase of monthly cost for meter installation • Have to collect rates regardless of having debt • Phase 1 and 2 immediately- could accelerate phase 3 later • Do not want to jump in and finance • Are both technologies capable with fiber to the home? Board direction to staff was to hold one more discussion workshop of the two technologies and the financing of the expedited plan (issues), and place an ad in the Sierra Sun inviting public input for next workshop. DISCUSSION OF THE CONSERVATION COMMITTEE'S DRAFT WATER AND POWER CONSER- VATION PLAN Doug Grandy, chairman, discussed what the committee covered to formulate the recommendations outlined in the Conservation Water and Power Conservation Plan: • Studied the policy environment with state legislation and government bills as to what they mean and how they apply to the TDPUD and programs • Looked at data- energy used, cost and what to do about it • Established a methodology and came up with recommendations and measures • Discussed how to deliver the programs • Discussed how to implement energy reduction- impact on cost and use (carbon footprint) • Feel a study of electric and water use would be beneficial to get better data for analysis • Thanked the Board for implementing some of the conservation programs already • Think the next steps to organize for success are: o Revise rate structures o Form partnerships with other utilities and government agencies who have similar missions o Transparency and openness of programs o Appoint a subsequent committee with similar a mission The Committee feels their job is not done. They have only gotten the momentum going. There is value to the Board to have a standard group that ratepayers can use as a sounding board. They can also assist as an outreach group to the public and customers. Board comment: • Page 5, Item B (comparison with other utilities) - out of place- how will this be presented to the public? • Website will have final- it is still in draft form. • Graphs- figures and titles not correct- needs clerical clean up. • Many recommendations have been implemented already. • How many committee members are left? • Overall effort is well done, thorough, good content. • PUD is already doing some of the recommendations. • Talking more about conservation. • Technical aspects- want staff to comment. • Concern about rate issue- do not like the idea of penalty rates. • Would like to see tiered rates eventually. • Encourage customers to conserve- page 40 • Good report- compiled everything 4 Minutes: June 18, 2008 • Lots of change since the coal issue • Was the report written after or before the District implemented changes? • There is more time to review and evaluate. • Finish and issue another draft or the final report. • Volume of information really good- would like to see once finalized. • Would like to have in a matrix format/table for example: recommendation- done- future- 1 year- 2 years- 5 years. • Have staff create analysis. • Concerned about the dictatorship language- encourage conservation. • Community as a whole needs to embrace through public outreach. • Wary of how it reads. • How is staff going to implement and associate costs? • Would like another meeting with staff on technical aspects and give direction. • Do what we can do- this is a guide- not gospel. DEVELOPMENT AGREEMENT UPDATE: ELECTRIC AND WATER A discussion of the development agreement process. Steve Hollabaugh gave a presentation on the development agreement update for electric and water: • Last policy change for construction and upgrades was in September 1995 • Staff has refined and streamlined the process • Changes to improve the process are: o Expanded dispute resolution process o Divide large projects into phases with discreet deliverable o Assign in internal Project Administrator to review and interface with Developer o Conduct a monthly internal project review to include percent completion, District's cost versus deposit and documentation submittals Board comment: • Makes sense • Project Administrator is a good idea • Changes are good • Make sure legal counsel reviews • Incorporate dispute resolution policy ROUTINE BUSINESS CONSIDERATION OF MINUTES FOR APPROVAL OF MINUTES FOR MAY 21 AND JUNE 49 2008 Director Hemig moved, and Director Aguera seconded, that the Board approve the minutes of May 24 and June 4, 2008. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED. TREASURER'S REPORT a. Treasurer's report for May 2008 Director Aguera moved, and Director Hemig seconded, that the Board approve the month ended May 2008. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED. b. Approval of disbursements through May 319 2008. Approval of disbursements: Director Hemig moved, and Director Aguera seconded, that the Board approve the May 2008 disbursements report. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED. 5 Minutes: June 18, 2008 CLOSED SESSION CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO SECTION 54956.8 OF THE GOVERNMENT CODE: PROPERTY: APNS 49-011-30 AND 49-011-29 (14629 AND 14630 GLENSHIRE DRIVE) CONFERENCE WITH LEGAL COUNSEL ON PENDING LITIGATION — GOVERNMENT CODE 54956.9: SIERRA PACIFIC POWER TRANSMISSION RATE CASE RETURN TO OPEN SESSION There was no reportable action. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 8:54 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Tim F. Taylor, Pr 'dent 1+ ;.ncuatw.. 7 �^1'0 kA C1111. ir• Prepared by Barbara Cahlil, Deputy District Clerk 6 Minutes: June 18, 2008