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HomeMy WebLinkAbout2007-08-15 Min - Board REGULAR MEETING August 15, 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, Neil Kaufman, Joe Horvath, Nancy Waters, Alan Harry, Peter Holzmeister, Steve Hollabaugh, Jessica Wilson, John Ulrich, Mary Chapman, Kathy Neus and Barbara Cahill CONSULTANTS PRESENT: Steve Gross, Scott Tomashefsky, Ron Ivy and Mike Lawson OTHERS PRESENT: Frank & Juanita Schneider, Ted Owens, Carol Pauli, Rusty Pauli, Andrew Cristancho, Jody Sweet, Wally Stevens, Debbie Black, Rolf Godon, Cathy Harry, Ellie Hyatt, Doug Grandy and 3 members of the public. PUBLIC INPUT Ted Owens, Nevada County 5th District Supervisor, congratulated Peter Holzmeister on officiating his very last public meeting. Mr. Owens then read the Nevada County's proclamation for Mr. Holzmeister's retirement from public service. Carol Pauli, a resident of Prosser Dam Road, said that as a result of the August 6 meeting, there is now a system set up to contact any resident in the Prosser Dam area. PUD staff can just call her and she will notify the area residents. Julie Vietor ran out of water and she now has an over ground water connection. Ms. Pauli thanked the PUD for its prompt action and concern. John Eaton congradulated Peter on his retirement. He wanted to draw the Board's attention to. the need for fire hydrants in older developments. He would like the District to set up a program to make sure there is adequate coverage. SPECIAL WORKSHOP ITEM DISCUSSION OF BROADBAND BUSINESS PLAN IMPLEMENTATION a. This item involves a presentation by 180 Connect regarding possible construction, funding and provision of broadband services Ron Ivy of 180 Connect gave his presentation: • Project direction and recap o Deploy "Homes Passed" FTTx System o Review & finalize Capital & Operational Budgets and "Investor' Options & Details o Review payback schedule vs take rate revenue and utility risks and existing options • Project committed investment details o Three phase installation plan o Development fee included of $2.5 million o "Home passed" build option 1 Minutes: August 15, 2007 - o Capital budget cost- $24.9 million o Project investment payback— 17 years • Project committed fund breakdown o Victor Capital as investment Partner o Hedge fund "Lease Payback" bond funding o Interest rate set at 8% o Capital held in interest bearing market and draws passed on completed project tasks o Take rate based on multiple stages o Early payback beyond 25%take rate revenue • Fund summary and port (phone, data, video) fees • Project capital and operational organization • Project capital budget summary: construction, equipment, operational reserve, deferred interest reserve, head end budget, development fee • Project operational budget summary o Equipment upgrade reserve, pole attachment fees, general maintenance reserve, network operations center, staff operations, billing cost, installation support as re- quested • Project risks o Incomplete, take rate low, provider complaints, operational staff issues • Provider responsibilities o Sign access provider agreement, define services, network architecture, test provisioning network hooks, active service level, tier 1 support calls, notify operations of network issues, market homes passed, install services at premise, customer issues • Project provider commitment— SureWest o 5 year provider agreement and fiber transport fee o define network, business relations, marketing approach & coordination efforts o Review port fees on network and operational process Public comment: • If cells phones can connect to the internet via satellite and fiber is hardwire, does this present a risk to the PUD take rate? • Is this broadband plan to serve residents who are unable to access the internet? • Is the system passive networking with addressable bandwidth and a switching network? Board discussion: • How quickly will the $2.5 Million development fee be paid back to internal PUD loans? • Are there any legal issues or lawsuits that could come from this new plan? • How will Alan Harry be able to cover all of his duties if this broadband takes off? • Want a glossary of terms that were in the presentation and deal with broadband/fiber. • The hedge fund seems like it would present a poor image of the PUD. • Are the $874,620 and 24 mo. interest reserves part of the bonds? • Is this plan using a new capital & operating budget or the old broadband data & budget? • Where did 180 Connect get their numbers for this presentation? • Is there still a provision to do SCADA? • It would be exciting if 180 Connect could demonstrate the speed of a fiber connection • Take rate would be about 30%within 3 years • Is the port fee assessment the cost to the customer? • Is 180 Connect comfortable with a 10% contingency in construction of the system? • Have legal counsel check into a public entity taking over in 20 years on a lease back option. • Does the PUD have to involve SureWest? • Can SCADA be constructed independent of fiber optic system? • Is there a cable from Reno to Sacramento? 2 Minutes: August 15, 2007 • Does the Board need an additional consultant to review the process? • Arrange with someone to lease the cable to provide service if the Board does not go forward with broadband. • If Truckee can have services without a risk, go ahead. • Counsel would make sure the new business plan meets LAFCo requirements. The Board directed staff and legal counsel to review the project and financing provided by 180 Connect and report back in September with findings and recommendations. ACTION ITEMS CONSIDERATION OF A REPORT FROM THE NORTHERN CALIFORNIA POWER AGENCY REGARDING CALIFORNIA ASSEMBLY BILL 2021 REQUIREMENTS AND ADOPTION OF A RESOLUTION ESTABLISHING ENERGY EFFICIENCY TARGETS. a. This item involves dis- cussion and action on the establishment of triennial energy efficiency targets for the District. Director Hemig moved and Director Aguera seconded, a motion to adopt a resolution to establish TDPUD's energy efficiency targets through 2016 as follows: energy 10,014 megawatt hours and demand 1.1 megawatts; and to direct NCPA to submit the targets to the California Energy Commission. ROLL CALL: All Directors, aye. SO MOVED. REPORT AND POSSIBLE ACTION ON A REPORT FROM THE DISTRICT'S CITIZEN COMMIT- TEE ON ENERGY CONSERVATION. a. This item involves reviewing the monthly report of the citizen committee on energy conservation and taking action on a request for assistance. Doug Grandy introduced himself as the conservation committee chair..He said it is not his interpre- tation to bring forward expensive programs. But to expend dollars and get those dollars back through a reduction in Kw- an investment, not a cost. Director Hemig moved and Director Aguera seconded, a motion to approve the Citizens' Advisory Committee on Conservation Proposal for Public Notice Protocol for Committee Business with modifications to use Yahoo! Group for the purpose of basic communication, lists, dissemination, but not decision making or group polling. ROLL CALL: All Directors, aye. SO MOVED. Director Hemig moved and Director Thomason seconded, a motion for the Citizens' Advisory Committee on Conservation speak with District staff to take a new look at the proposed budget, see if any dollars can be allocated from the 2007 District budget and address the larger picture for the 2008 District budget. ROLL CALL: All Directors, aye. SO MOVED. DISCUSSION AND POSSIBLE ACTION RELATED TO A REPORT ON DISTRICT FINANCES. a. This item is a continuation of the discussion of District finances with particular emphasis on water and electric general funds and facilities fees. Mary Chapman gave a report of the status of facilities fees and general funds: • Electric facilities fees balance $1,975,050 (includes YTD collected and interest earned) • Water facilities fees balance $3,673,359 (includes YTD collected, interest earned, YTD expenditures and 2006 COP loan payment) • Electric general fund balance $3,458,071 (includes reserve for developer credits and transfer to water department) • Water general fund balance <$475,099> (includes reserve for developer credits) No action taken. 3 Minutes: August 15, 2007 CONSIDERATION OF A REPORT AND POSSIBLE ACTION RELATED TO DISTRICT OWNED PARCELS OF LAND ON EAST RIVER STREET. a. This item involves declaring a parcel of District owned land on East River Street as surplus to facilitate solving neighborhood lot line problems. Director Sutton recused herself as she owns property on East River Street. Director Aguera moved and Director Hemig seconded, a motion adopt the resolution declaring Lots 13 and 14 (APN19-160-34) of the Moody's Extension at 10297 East River Street as surplus and authorize staff to offer the parcel for sale or lease to the required public agencies. ROLL CALL: Director Sutton, recused; All other Directors, aye. SO MOVED. CONSIDERATION OF APPROVING THE TRANSFER OF PUBLIC BENEFITS FUNDS FROM THE ELECTRIC GENERAL FUND TO THE WATER FACILITIES FEE FUND AND WATER FACILITIES FEES TO THE WATER GENERAL FUND. a. This item involves transferring funds to reimburse the water facilities fee account for expenditures that qualify for the public benefits program, and transfer funds from the water facilities fee fund to the water general fund for debt payments that qualify for facilities fees. Director Hemig moved and Director Thomason seconded, a motion to authorize the transfer of funds from the Electric Department to the Water Department Facilities Fee Fund for reimbursement in the amount of $1,127,490.70 for the cost to date by the Water Department for its Energy Conservation Program. ROLL CALL: All Directors, aye. SO MOVED. CONSIDERATION OF A REPORT ON BIDS RECEIVED FOR CONSTRUCTION OF THE FIBREBOARD WELL. There were no bids received. There was no action taken. CONSIDERATION OF APPROVING A CEQA SERVICES PROPOSAL FROM INLAND ECOSYSTEMS. a. This item relates to performing the CEQA work necessary for the construction of electric system capital improvement projects during 2008. Director Hemig moved and Director Aguera seconded, a motion to approve issuance of a new Task Order with Inland Ecosystems to perform the CEQA work for the electric system capital improvement projects for an amount not to exceed $8,130; and authorize the General Manager to approve the issuance of a new Task Order with Inland Ecosystems to perform the NEPA study for an amount not to exceed $5,800 if Sierra Pacific informs the District that they have easement across U.S. government property. ROLL CALL: Director Sutton, no (object to using consultant when Board has not approved Inland Ecosystems, Board should call for RFP and select); All other Directors, aye. SO MOVED. CONSIDERATION OF A RESOLUTION AMENDING THE DISTRICT CODE OF REGULATIONS RELATED TO MANAGEMENT AND PROFESSIONAL EMPLOYEE BENEFITS. a. This item relates to amending Title 4.24 of the District Code to establish consistency of benefits among union and non-union employees. Director Aguera moved and Director Hemig seconded, a motion to adopt the resolution amending Chapter 4.24 of the District Code to reflect consistency between the District's Union and non-union employees, except for application of overtime and administrative leave benefits. ROLL CALL: All Directors, aye. SO MOVED. 4 Minutes: August 15, 2007 -- CONSIDERATION OF DECLARING CERTAIN ITEMS OF DISTRICT EQUIPMENT AS SURPLUS AND AUTHORIZING THAT THEY ARE DISPOSED OF IN ACCORDANCE WITH DISTRICT POLICY. a. This item involves selling surplus material and equipment, such as vehicles, office equipment and computers that are no longer used by the District. Director Hemig moved and Director Aguera seconded, a motion to adopt the resolution declaring certain material, office equipment and vehicles as surplus and directing the General Manager to dispose of it in accordance with District policy. ROLL CALL: All Directors, aye. SO MOVED. CONSIDERATION OF AMENDING THE DISTRICT VEHICLE USE POLICY. a. This item involves amending the vehicle use policy to permit the employee managing legislative and regulatory matters to use a District vehicle. Director Thomason moved and Director Aguera seconded, a motion to approve and adopt the revised Policy for District Owned Vehicles. ROLL CALL: All Directors, aye. SO MOVED. WORKSHOP DISCUSSION OF A DRAFT PROFILE OF CHARACTERISTICS FOR RECRUITMENT OF A NEW DISTRICT GENERAL MANAGER. a. This item involves review of the draft profile and to receive comments from the public regarding characteristics of a new General Manager. Mike Lawson of Ralph Andersen & Associates familiarized the Board and public with the draft General Manager Profile. He emphasized the importance of an organization fit, enough detail and the right characteristics to ensure a good fit. Board comments: • The Board has not set a time schedule- do not want to rush • Incorporate public comments into the draft profile • Draft profile looks good • Is the board going to access a panel of public individuals- for example, Tony Lashbrook, Nelson VanGundy- to assist in the interview process The Board asked to have another workshop at the beginning of the first meeting in September, with an action item regarding the compensation package. ROUTINE BUSINESS CONSIDERATION OF MINUTES FOR JULY 119 23 AND 259 2007. Director Hemig moved, and Director Aguera seconded, that the Board approve the minutes of July 11, 23 and July 25, 2007. ROLL CALL: All Directors aye, by voice vote. SO MOVED. TREASURER'S REPORT Approval of the report: Director Thomason moved, and Director Hemig seconded, that the Board approve the month ended July 31, 2007. ROLL CALL: All Directors aye, by voice vote. SO MOVED 5 Minutes: August 15, 2007 Approval of disbursements: Director Thomason moved, and Director Aguera seconded, that the Board approve the July 2007 disbursements report. ROLL CALL: Director Sutton, no (feels the Board should approve the checks before they are mailed); All other Directors, aye. SO MOVED. STAFF REPORTS Ed Taylor, Water Utility Manager, told the Board a letter and information request was sent to the Prosser Dam area residents. Julie Vietor's well was out of water, but the PUD had water to her the next day. There are 5 wells being drilled; all others have water. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 12:20 AM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Tim F. Taylor, Pre 'dent Prepared by p Barbara Cahi", eputy District Clerk bhc 6 Minutes: August 15, 2007