HomeMy WebLinkAbout2007-06-20 Min - Board REGULAR MEETING
June 20, 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, Tim Taylor and Bill Thomason were present.
Director Patricia Sutton was absent.
EMPLOYEES PRESENT: Peter Holzmeister, Joe Horvath, Neil Kaufman, Scott Terrell, Mary
Chapman, Alan Harry, Nancy Waters, Ed Taylor, Mark Thomas and Sara Owens.
CONSULTANTS PRESENT: Steve Gross, Trent Miller, Mark Johnson, Ron Kuenz, Ron Levy and
Glenn Merron
OTHERS PRESENT: Frank & Juanita Schneider, Andrew Cristancho, Bob Johnston, Rolf Godon,
Ronnie Colby, Dan Warren, Brian Woody, Nicole Shearer, Howard Wright, Rolf Godon and Doug
Grandy
PUBLIC INPUT
There was no public input.
The Board agreed to hold the first meeting of July on the 5t"
SPECIAL WORKSHOP ITEM
DISCUSSION OF BROADBAND BUSINESS PLAN IMPLEMENTATION. a. This item relates to
a discussion of financing and construction of the District's broadband system.
Presentation by 180 Connect and North Sky Communications:
• Project Team: TDPUD, Quanta Investment, 180 Connect, NorthSky Construction
• Project Team Responsibilities
0 180 Connect project approach, capital costs, permitting/licensing, design &
engineering, service provider coordination & content approach, fiber testing &
documentation, records management, system mapping, customer premise equip-
ment installation & activation, material management support
o Quanta Investment Services: financing package, outside plant construction,
material procurement, quality control/inspections, OSP aerial & buried drop
placement, design installation support
o TDPUD to provide: community support, access to PUD properties, permit support,
systems operations, marketing support
• Company Overview & Qualification (details): 180 Connect, Quanta Investment
• Project Approach/focus: develop, design, install and operate an advanced fiber infrastruc-
ture network to support multiple services: voice, IPTV, Data, Gaming VOD, SAN's, etc.
• Project Network Options: "Home Passed" or "Always On" network
• Project Investment Details: phased installation, PUD development fee $2.5M, cost options,
investment payback, reserved 2 year operation capital budget, low operational cost
• Project Capital Budget Summary: "Homes Passed" and "Always On"
• Project Provider Relations, Overview-system Details and Schedule
1 Minutes: June 20, 2007
• AMR- Automatic Meter Reading Network Overview
• Truckee Donner PUD- FTTx budget summary
Public input:
• Like the product and services.
• Are those same rules going to apply in this case as when funding was discussed in the
archives?
• Is it still the same that there is no encumbrance of electric or water funds?
• What is the package going to cost and why do you think it is going to out-compete existing
services out there?
• What do numbers look like? Want to see market competition study.
• Nice to see written up successes stories- especially in heavily segmented second home
areas
• Capital cost numbers are quite low and look good per unit
• Has the PUD officially decided to move forward with Broadband? Never aware this had
been voted on. It still seemed there was a question of should we proceed or shouldn't we.
Confused.
• Why doesn't the private enterprise just do this? Why does the public utility want its fingers
in it in the first place? It is a capitalistic market.
• There is a liability in succeeding.
• Would Surewest do the whole thing or would they just be the service provider?
• Down through all the levels, would the responsibility be on the PUD's back to market and
sell to the homeowners?
• The PUD be leasing the backbone- someone else would provide services to residential and
commercial customers. Would Surewest get a percent of the fees generated?
• Based on the numbers, how many people need to sign up for it to be economically viable?
• Is the lease rate a fixed rate regardless of the number of subscribers?
Board discussion:
• Tonight allows staff to explore further on what this will cost.
• Bring Surewest into picture to see what their cost will be to put together an overall business
plan.
• Who is going to own the system after it is built?
• 180 Connect is to provide funding through Quanta services- who holds the risk for the
project to succeed.
• Is this a change in original Broadband plans that may open up additional lawsuit possibili-
ties from Cebridge?
• 15 year payback- how did they come up with that? Does it assume a number of usage in
Truckee?
• Why Truckee- in terms of size a good customer, great, average? Why a performa to solicit
us?
• Would Surewest approve this concept? Are they the natural partner/not Comcast?
• If there was a worse case- and after 2 years, penetration is only 10%- and not succeeding.
If this happens and tanks- is this a loss to investor? If do not continue- who owns the
assets?
• $2.5M initial cost fee- outlay- also saw$360,000 operating cost.
• Are the 3 phases geographic?
• I like the fact we can own the system at one time.
• I like the idea of downtown wireless.
• Payback- PUD as the lease and 180 Connect owns the system for 15 years. How did they
come up with this term?
2 Minutes: June 20, 2007
"Always on" installation seems like the best system for us.
• Is there a lease back issue with a public utility regarding competitive bidding or prevailing
wage- how does this get dealt with? The question was directed to Board Counsel.
• Understand the penetration with homes passed basically pays for the 15 year payback.
• If went to the AMR (Automatic Meter Reading Network)system, there is a penetration rate
of people buying service-but then wouldn't there have to be a base rate that every customer
pays as a surcharge for that service of us being able to automatically read it?
• Would a homeowner assume with AMR, they are automatically connected?
• If 180 Connect builds the backbone- who do we lease it back from?
The Board directed staff to continue negotiations with the project team.
ACTION ITEMS (Action item discussions will utilize the following format: (a) staff report, (b)
public input, and (c) Board discussion and action
CONSIDERATION OF APPOINTING A CITIZEN COMMITTEE ON ENERGY AND WATER
CONSERVATION. a. This item relates to appointing members to a citizen committee to
review and report to the Board its recommendations on a water and electric conservation
program.
Director Hemig moved and Director Aguera seconded, a motion to remove Robert Johnston from
the conservation committee list of prospective applicants.
ROLL CALL: Director Sutton, absent; Director Thomason, no; All other Directors, aye. SO MOVED.
Director Hemig moved and Director Thomason seconded, a motion to appoint the following per-
sons to the conservation committee: Ben Benson, Jim Booth, Ronnie Colby, Anna Demm, Dan
Dickerman, Mitch Dion, Christa Finn, Rolf Godon, Tom Gorin, Doug Grandy, Kristopher Hansen,
Lauri Heath, Robert Heath, Gerald Herrick, John Hillstrom, Beth Ingalls, Betony Jones, Kenneth
Knutsen, Eric Perlman, Susie Sutphin and Joanna Walters
ROLL CALL: Director Sutton, absent; All other Directors, aye. SO MOVED.
CONSIDERATION OF RETAINING THE SERVICES OF A CONSULTANT TO ASSIST IN
IMPLEMENTATION OF THE REQUIREMENTS OF SB-1. a. This item relates to initiation of the
District's compliance with SB 1, known as the California Solar Initiative.
Director Aguera moved and Director Hemig seconded, a motion to direct the Board President to
sign an agreement between the Truckee Donner PUD and Efficiency Services Group for a
Photovoltaic Solar Program for a cost of $7,500, plus travel expenses not to exceed $1,000;
funding will provided by the Electric Department (and reimbursed in 2008 by the surcharge
collected on customer bills).
ROLL CALL: Director Sutton, absent; All other Directors, aye. SO MOVED.
REVIEW OF PROPOSALS TO ASSIST THE BOARD IN RECRUITMENT OF A NEW GENERAL
MANAGER, POSSIBLE ACTION. a. This item relates to selective firms to interview prior to
appointment of a firm to help the Board recruit for a new General Manager.
The Board selected the following firms to interview on July 11 beginning at 3:00 PM:
3:00 p.m. Mycoff &Associates
4:00 p.m. Alliance Resource Consulting
5:00 P.M. Ralph Andersen &Associates
6:00 p.m. Bob Murray & Associates
No other action taken.
3 Minutes: June 20, 2007
CONSIDERATION OF PLANS SPECIFICATIONS AND CONTRACT DOCUMENTS AND
ISSUANCE OF A CALL FOR BIDS FOR CONSTRUCTION OF THE CONDUIT INSTALLATION -
2007 PROJECT. a. This item relates to securing the services of a contractor to construct
underground conduit at Pioneer Drive at Donner Lake and the Alder Drive pump station.
Director Aguera moved and Director Hemig seconded, a motion to approve the plans and
specification for the Conduit Installation-2007 project; and authorize staff to begin advertising for
Bids with a Bid Opening Date of July 12, 2007.
ROLL CALL: Director Sutton, absent; All other Directors, aye. SO MOVED.
CONSIDERATION OF A REPORT ON PROPOSALS RECEIVED AND POSSIBLE AWARD OF A
CONTRACT FOR HYDROGEOLOGIC SERVICES a. This item relates to selecting a firm to
assist the District in developing new wells.
Director Hemig moved and Director Thomason seconded, a motion to authorize the Water
Department to retain AquA Hydrogeologic Consulting to assist the District with construction bidding
and construction of the Fibreboard Well contract based upon the hourly rates given in AquA's cost
proposal with an amount not to exceed $110,000; authorize the Board President to sign the
contract; and authorize the transfer of facilities fees to fund the contract.
ROLL CALL: Director Sutton, absent; All other Directors, aye. SO MOVED.
CONSIDERATION OF A REPORT ON PROPOSALS RECEIVED AND POSSIBLE AWARD OF A
CONTRACT FOR SURVEY WORK FOR RELATED TO THE 2008 PIPELINE REPLACEMENT
PROJECT. a. This item relates to selecting a firm to conduct survey work on streets where
water pipeline replacement will occur in 2008.
Director Aguera moved and Director Thomason seconded, a motion to authorize the District to
enter into an agreement with Sage Land Surveying to perform the surveying work in an amount of
$27,000; the funding source for Task 1 ($21,500) would be the pipeline replacement funds
available from issuance of the 2007 COP; and the funding source for Task 2 ($5,500) would be the
Land Sales Trust Fund (reimbursed upon sale of Euer Valley land). ROLL CALL: Director Sutton,
absent; All other Directors, aye. SO MOVED.
WORKSHOP ITEMS
DISCUSSION OF NEW REQUIREMENTS RELATED TO STORM WATER CONTROL AND
CONSTRUCTION ACTIVITIES. a. This item relates to new legal requirements governing
erosion control during District construction projects.
Neil Kaufman and Glenn Merron (Inland Echosystems) gave a presentation on impacts of the
California State Water Resources Control Board changes to the General Permit for Construction
Activities effective January 1, 2008 and the National Pollution Discharge Elimination System:
• Changes address water quality impacts associated with storm water runoff from construc-
tion activities, resulting in more regulations for management and compliance
• Storm water pollutant at construction sites is sediment due to landscape disturbance
• Sediment runoff impacts water quality and affects ecological processes
• Discharges can result in substantial fines
• General Permit
o Regulates pollutants (sediment caused by excavation, clearing and grading)
o Regulates dewatering, pipeline flushing, well testing and saw cutting.
4 Minutes: June 20, 2007
o Requires District to place projects in a low, medium or high risk category based on
"Sediment Transport Risk Worksheet" and includes risk parameters and sediment risk
o Requires sediment basin sizing
• District construction projects
o Minimal impact to water quality- low risk: fewer regulations
o Impact to water quality- medium or high risk: additional monitoring to ensure compliance
• Storm Water Pollution Prevention Plans (SWPPP)
o Describes locations of construction sties and BMP's that will be in place to control ero-
sion and discharge of sediment.
o District needs to update current procedure to include requirement of new General Per-
mit.
o Train and certify personnel in preparing the SWPPP's and the inspecting BMP's
• Rain Event Action Plan (REAP): prepare prior to 30% chance of storm event and monitor
site
• Construction Site Monitoring Program (CSMP): implement prior to construction (part of
SWPPP)
• Affects on District
o Additional staff time during design phase (sediment basins & staging areas)
o Additional time during monitoring phase (ensure SWPPP compliance)
o Staff must complete a Sediment Transport Risk Worksheet
o Update SWPPP's and prepare CSMP and REAP for each site
Board discussion:
• Town of Truckee also affected
• Are impacts going to hit the water department disproportionally?
• How many staff will need to be certified?
• Is certification process lengthy?
• Who determines whether a project is low, medium or high risk- Lahontan?
• Point out that it is not just the Water Department, but also Electrical who constructs conduit.
• How compliance with new regulations fit in with the CEQA process- mitigation measure or
separate process?
DISCUSSION OF IMPLEMENTATION ON WATER METERS AND A WATER METER RATE.
a. This item relates to a review of California law mandating the use of water meters, the
process of complying and adopting a related water rate.
Neil Kaufman gave a presentation regarding water meters:
• Regulations
o Cal. Water Code Section 110/525: required all houses constructed since 1/1/92 have a
water meter
o AB 2572
■ Install water meters on all municipal & industrial service connections located within
its service area on or before 1/1/2025
■ Charge actual volume on or before 1/1/2010
■ Allows delay for one annual seasonal cycle of water use for conversion to volume-
based water service charges
■ On & after 1/1/2010, water supplier that applies for financial assistance from the
state or submits an application for a new water supply must demonstrate they meet
requirements
o Timeline
■ 2010-read meters installed since 1992 (sample bills to customers)
■ 2011-begin actual volumetric billing of meters
5 Minutes: June 20, 2007
■ 2025-retrofit all customers with meters & begin volumetric billing
■ TDPUD-houses: 4,900 should have meters, 700 should not have meters but have
upgraded meter boxes and 5,900 should not have meters.
Rate Structures
o Declining block rates
o Flat rates
o Inclining block rates
o Seasonal rates
• Rate methodology
o Past method: expenses increase by 3%- increased customer base could cover or in-
crease bills by flat amount
o New metered rate structure: flat block (fixed expenses) rate appx. $36.57/mo. and vol-
ume charge appx. $1.21/1,000 gallons (making the estimated average residential bill
$49.28 - using 10,502 gallons)
• Costs to Implement Metering
o Purchase & install meters (appx. $19,862,500)
o Sinking fund/depreciation for meter replacement (appx. $275,000 annually)
o Labor to maintain meters (1.5 full time field employees, meter test equipment, vehicle)
o Administrative costs of meter reading, customer service, etc (billing/customer service
clerk, half-time meter reader, appx $150,000 for software upgrades, equipment, redes-
ign bills and customer notices
o New Construction Water Program- existing $10 per day/per truck may need to change
with purchase of additional equipment
o Estimated costs to implement meters will increase the monthly rate to appx. $45.71
(from $36.57)
" " • Future actions
o Determine type of rate structure
o Pre 1992 residences- convert or develop a dual rate structure
o Pilot study- need meters in ground to determine average usage
o Estimated bill assumes 20%water is lost- could be higher- pump stations need meters
o Evaluate zone pumping charge: electrical costs, system modifications, more zones
o Reserve for future meters fund balance: $1,138,649
Board discussion:
• What about time frame- is there any leeway?
• What are the repercussions if we do not comply by the set dates?
• If implement program fully and now conserving water because of cost and locating leaks,
there's got to be significant savings on the power side with not moving as much water.
• Still need to find leaks.
• Presentation did not look at light user compared to heavy user.
• Decide to have all meters in, can't do in a year or two.
• How can we compare our situation with others around the state?
• Would we look at doing a Certificate of Participation if we did all the meters at once?
• Tahoe City is doing a neighborhood at a time.
• We need to take this in chunks.
• Numbers are a ballpark.
• There needs to be a lot of education of the customers about this.
6 Minutes: June 20, 2007
ROUTINE BUSINESS
CONSIDERATION OF MINUTES FOR MAY 16 AND JUNE 69 2007.
Director Hemig moved, and Director Aguera seconded, that the Board approve the minutes of May
16 and June 6, 2007.
ROLL CALL: Director Sutton, absent; All Directors aye, by voice vote. SO MOVED.
TREASURER'S REPORT
Approval of the May 31, 2007 report: Director Aguera moved, and Director Hemig seconded, that
the Board approve the treasurer's report through May 31, 2007.
ROLL CALL: Director Sutton, absent; All other Directors, aye. SO MOVED.
Approval of May 2007 disbursements: Director Hemig moved, and Director Aguera seconded,
that the Board approve the May 2007 disbursements report.
ROLL CALL: Director Sutton, absent; All other Directors, aye. SO MOVED.
STAFF REPORTS
No action taken.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 11:08 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Tim F. Taylor, Pregidoeht
Prepared by
C G� �
Barbara Cahio,Deputy District Clerk
7 Minutes: June 20, 2007