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Home My WebLink About2008-08-06 Min - Board REGULAR MEETING August 6, 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 anv 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 6:00 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: Kevin Johnson, Steven Poncelet, Mary Chapman, Ed Taylor, Neil Kaufman, Kathy Neus, Bob Mescher, Rosana Matlock, Steve Hollabaugh and Barbara Cahill. General Manager Michael Holley was on vacation. CONSULTANTS PRESENT: Jill Vacchina OTHERS PRESENT: Juanita Schneider, Dan Warren and Rob Sayers CHANGES TO THE AGENDA Mr. Hollabaugh requested workshop Item No. 15, Review of Billing Collection Status and Write ... off Status, be held before agenda Item No. 10, Adopt Resolution Accepting Revisions to District Code, Title 5,Customer Relations. PUBLIC INPUT Director Hemig wanted to draw attention to his stainless steel water bottle to replace his use of plastic water bottles- about 200 per year. DIRECTOR UPDATE There were no Director updates. CONSENT CALENDAR ADOPTION OF THE CEQA DOCUMENT FOR THE INITIAL STUDY FOR STOCKHOLM PUMP STATION REPLACEMENT PROJECT This item relates to the CEQA Negative Declaration for the Stockholm Pump Station Replacement Project. DECLARE EQUIPMENT AND MATERIALS SURPLUS This item concerns declaring District equipment and materials surplus. ADOPT A RESOLUTION EXEMPTING DONNER LAKE ASSESSMENT DISTRICT COMMON AREAS This item involves the exemption of common areas in the Donner Lake Assessment District. Director Thomason moved, and Director Hemig seconded, that the Board approve the consent calendar. ROLL CALL: Directors Sutton and Taylor, absent; All other Directors aye, by voice vote. SO MOVED 1 Minutes: August 6, 2008 ACTION ITEM CONSIDERATION OF RENEWING VIRCHOW KRAUSE'S CONTRACT AS DISTRICT AUDITORS TO PERFORM THE 2008 THROUGH 2O10 AUDITS This agenda item concerns hiring Virchow Krause as the District's auditors to perform the 2008, 2.009 and 2010 audits. Director Hemig moved, and Director Aguera seconded, that the Board retain Virchow Krause to perform the District's audits for 2008, 2009 and 2010 at the quoted prices ($55,000, $58,000 and $60,000) and authorize the Board President to sign the engagement letters for each year. ROLL CALL: Directors Sutton, absent; All other Directors aye, by voice vote. SO MOVED WORKSHOP REVIEW OF BILLING COLLECTION STATUS AND WRITE OFF STATUS This item concerns a review of the customer billing accounts receivable and write off of uncollectible accounts trends. Mary Chapman gave a presentation: • Historically write-offs have been low • Most recent semi-annual write off list is $17,767 o Summary by years of service ■ Less than 1 year 17% ■ 1 to 2 years 30% ■ 2 to 3 years 8% ■ 3 or more years 45% o Ratio: owner 28%/ renter 72% • This is a significant increase over the 2007 write off list • Additional recommended changes to Title 5, Customer Relations o Homeowners would be required to pay deposits the same as renters ■ No deposit with Equifax score of greater than 700 or with payment history with previous utility meeting District's standards o Change the look back period from 12 to 24 moths before refunding deposits There was no public input. Board discussion: If make the two requested changes, how does this affect the situation now? • What is the average write off for other utilities? • The large commercial account write-off messes up the figures • Is the commercial account just a write off or now with a collection agency? • Write off amount is such a tiny number • Asking a homeowner for a deposit is such a small number to request -- Looking at figures for one year is not enough time to see a trend • This has been a bad year- shows an increase in the last six months • OK with the two changes • This year homeowner write-offs consists of 28% of the total 2 Minutes: August 6, 2008 • What is the average homeowner deposit? Who decided on the 700 score with Equifax? If a person can get a home loan for under 700, why not a deposit waiver for under 700? Maybe it should be 680. • Do we define the District's standards for a no deposit with a payment history with a previous utility? • PUD is seeing the problem with the economy- need to address this trend so don't end up with higher write-offs ACTION ITEMS ADOPT A RESOLUTION ACCEPTING REVISIONS TO DISTRICT CODE - TITLE 5, CUSTOMER RELATIONS This item involves approval of a resolution to adopt the revi- sion to District Code, Title 5, Customer Relations. Director Hemig moved, and Director Aguera seconded, that the Board adopt the resolution Adopting Amendments to the District Code Title 5, Customer Relations with all revisions in the packet and a revision to the look back period from 12 to 24 months (5.01.005, 5.01.010.1 and 5.01.020); and authorize the President of the Board to sign the resolution. ROLL CALL: Directors Sutton, absent; All other Directors aye, by voice vote. SO MOVED AUTHORIZE IMPLEMENTATION OF AN AUDIT RECOMMENDATION TO USE ALTERNA- TIVE ACCOUNTING PROCEDURES PERTAINING TO THE STAMPEDE ENERGY EXCHANGE ACCOUNT (SEEA) This item concerns removing transactions from the District's accounting system relating to the Stampede Energy Exchange Agreement. Director Aguera moved, and Director Thomason seconded, that the Board authorize the Treasurer to establish a separate bank account with US Bank for the purpose of separating Stampede Energy Exchange Account transactions; the account will be named: "Truckee Donner Public Utility District- Stampede Energy Exchange Account "; and authorize the Treasurer to keep separate records of Stampede Energy Exchange Account transactions that are not part of the District operations or its reporting entity, in compliance with the 2007 financial audit recommendation. ROLL CALL: Directors Sutton, absent; All other Directors aye, by voice vote. SO MOVED REVISIONS TO DISTRICT CODE CHAPTER 8.20.010 - DISPOSAL OF SURPLUS INVENTORY, MATERIALS, OFFICE EQUIPMENT AND VEHICLES This item involves discussion of a surplus policy for vehicles, materials and equipment. Director Hemig moved, and Director Thomason seconded, that the Board approve the proposed code revisions to District Code Chapter 8.20.010- Disposal of Surplus Inventory, Materials, Office Equipment and Vehicles; revise section 8.20.010.2 to increase "an estimated value" to $1,000 from the proposed $500; and to change sections 8.20.010.4 and 8.20.010.5 subheadings to 8.20.010.3. ROLL CALL: Directors Sutton, absent; All other Directors aye, by voice vote. SO MOVED 3 Minutes: August 6, 2008 APPROVAL OF A CONSULTING SERVICES PROPOSAL FOR THE PREPARATION OF ASSET INVENTORY, ASSET VALUATION AND ASSET LEASING OF THE DISTRICT'S FIBER ASSETS This item concerns the approval of a the Consulting Services Proposal for the preparation of Asset Inventory, Asset Valuation and Asset Leasing of the District's Fiber Assets with Uptown Services LLC. Director Thomason moved, and Director Aguera seconded, that the Board approve the proposal for consulting services from Uptown Services LLC for a maximum of $30,000 plus normal and customary travel expenses for the preparation of asset inventory, valuation and leasing of the District's fiber assets. ROLL CALL: Directors Sutton, absent; All other Directors aye, by voice vote. SO MOVED WORKSHOPS DISCUSSION OF 2009 BUDGET CALENDAR This item involves scheduling the 2009 Budget Process. Bob Mescher presented the 2009 budget calendar: • 8/6/2008 Workshop o Review 2009 budget calendar • 9/17/2008 Workshop o Mission, goals and objectives o Budget assumptions o Purchased power plan o District labor o District existing debt 10/1/2008 Workshop o Operating/Capital Budget Presentations o Board of Directors o General Management o Administrative Services o Conservation o Power Supply o New debt (water meter financing) • 10/15/2008 Workshop o Operating/Capital Budget Presentations ■ Electric Operations ■ Water Operations o Reserve funds o Revenue, rates, fees and charges o Action Item Set public hearing dates and times • 11/05/2008 Workshops o Draft budget o Finance master plan Public Hearings o Draft budget o Rates, fees and charges 4 Minutes: August 6, 2008 • 11/19/2008 Action Items o Adopt 2009 Budget o Adopt 2009 Rates, Fees and Charges o Adopt 2009 Overhead Rates Board discussion: • Not much wiggle room in the schedule- if we do not make the November 19 approval deadline, there could be three new board members • How does this related to a two-year budget cycle? Or does the two-year begin in 2010? • What date would the new board members be seated? • Concern about holding the public hearings the same night as see the overall draft budget-move hearings to November 12 Rob Sayers, a member of the public, asked to speak. President Taylor informed him that the time for public input was at the beginning of the meeting. However, an exception would be made to hear his input. Mr. Sayers was nearly disconnected for non-payment today. He is here to present a concept and not just for a personal gripe. He has three points: Truckee's small town persona is declining; wants the PUD to consider a winter disconnect policy; and wants the PUD to estab- lish an energy bank similar to MANA's program to assist people in dire straights (add 25 cents to a dollar to customer bills). Mr. Sayers feels he is always in communication with the PUD staff and they know the nature of his problem. President Taylor stated the Board needs more details from PUD staff about Mr. Sayer's situation. REVIEW OF PROPOSED AMENDMENTS TO TITLE 2 ADMINISTRATION RELATIONS OF THE DISTRICT CODE This concerns proposed revisions to Title 2 of the District Code. Mary Chapman gave a presentation on the major proposed changes: • Identified sections of the code that represent the Bylaws • Added the officer positions of the Assistant Treasurer and Accountant-to be appointed by name • Removed references to the old defined benefit plan • Changed all references to taping of meetings to recording of meetings • Changed the procedure by which board members add items to the agenda • Revised the order of business on the agenda to match the Board's current practice • Deleted workshops as a separate meeting from the business meeting • Changed wording of presenting budgets to allow for bi-annual budget cycles • Clarified board member use of District issued credit cards for business expenses • Deleted old language addressing priority areas needing improvement from 1986 • Matched the language in the General Manager's Employment Agreement addressing performance evaluations and salary adjustments • Added AB 1234 requiring directors to attend ethics training every two years • Updated disclosure categories and designated positions in the Conflict of Interest code 5 Minutes: August 6, 2008 Board discussion: • Have reviewed once, but need to go through again • Doing a good job to reorganize and clean up • Did not realize the Directors were to take turns being President • Why is the President of the Board the official District spokesman when we now have a Public Information and Conservation Manager • The phrase "such waiver may be given by telegram" should be removed- outdated • Adopting the budget no later than the second regular meeting in December may be too late in an election year- maybe should set the date sooner • Are the deleted portions elsewhere- need some clarification • Need to re-read ACTION ITEM SETTING A PUBLIC HEARING TO REVIEW THE CONFLICT OF INTEREST CODE This item involves holding a public hearing to consider revisions to the District's Conflict of Interest Code. Director Hemig moved, and Director Thomason seconded, that the Board establish a 45 day comment period; Direct the General Manager submit the Notice of Intention to amend the District's Conflict of Code to the Fair Political Practices Commission; and set a public hearing for September 17, 2008 to receive comments on the draft amendment to the District's Conflict of Interest Code ROLL CALL: Directors Sutton, absent; All other Directors. aye, by voice vote. SO MOVED CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL ON PENDING LITIGATION GOVERNMENT CODE 54956.9: SIERRA PACIFIC POWER TRANSMISSION RETURN TO OPEN SESSION Report from Closed Session There was no reportable action. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 8:30 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Tim F. Taylor, Pre ' t b Prepared Pre A '� ( � , .- P y Barbara Cahill, Deputy District Clerk 6 Minutes: August 6, 2008