HomeMy WebLinkAbout2008-08-20 Min - Board a
WORKSHOPS
PRESENTATION ON TRUCKEE RIVER OPERATING AGREEMENT This is a presentation by
John Sarna, State of California Watershed/Cal-Ned Assessment Section on the Truckee River
Operating Agreement.
Kathy Neus gave a brief history of the Truckee River Operating Agreement (TROA) and introduced
Carroll Hamon and John Kramer with the Department of Water Resources who continued with a
presentation:
• TROA applies to Truckee River Basin and Tahoe Basin, Carson River Basin (affirms Alpine
Decree) and in Nevada, through Reno/Sparks to Pyramid Lake
• Truckee-Carson-Pyramid Lake Water Rights Settlement Act of 1990 (101-618) requires five
mandatory parties to the Agreement, requires execution of TROA and provides equitable
apportionment of the water of the Truckee River, Carson River and Lake Tahoe between the
states of California and Nevada
• TROA will settle the CA/NV Truckee River Interstate Compact and will settle other water
rights disputes in the Truckee/Lake Tahoe Basin
• TROA would:
o Implement allocation of 32,000 afa to CA in the Truckee River Basin with the remainder
of the flow to NV and Lake Tahoe allocation with 23,000 afa going to CA
o Preserve existing water rights and recognize initiation of new water rights in CA within the
act's allocation
o Create CA Municipal & Industrial Credit Water and Environmental Credit Water
o Enhance water management flexibility, water quality, condition for Pyramid Lake fishes,
in stream flows and reservoir recreation
• TROA process
0 16 years of negotiations of specific issues with members of the Truckee River Basin
Water Group, managers of water districts and other local stakeholders
o Final TROA EIS/EIR completed and distributed to public in January 2008
o Comply with all requirements of the CA Environmental Quality Act
• TROA implementation
o September 6, 2008 signing to put into action
o Actual operation will take several years- 2014 is the deadline to satisfy all remaining
conditions
o First TROA Administrator becomes Truckee River Watermaster
Board discussion
• We need to credit Director Pat Sutton for all her efforts over the years in working with TROA
• How does the PUD interact with TROA?
• Does TROA affirm the Donner Lake water rights?
• We use groundwater- is this part of the allocation?
• How many acre fee do we use a year and what is projected?
• What if the President of our Board does not sign the agreement?
• What sections of the agreement are pertinent to the TDPUD?
• Isn't water being moved between reservoirs already?
• How does the wastewater plant on the Truckee River affect the agreement?
• 1 remember both Peter Holzmeister and Pat Sutton attended TROA meetings.
• Isn't our allocation from wells?
• Would the PUD have to apply for another water right?
• Historically this is a big deal- good to move forward.
2 Minutes: August 20, 2008
Counsel Steve Gross asked if the additional 40-acre feet at Donner Lake comes with restrictions as
with the 990-acre feet. Can it only be used in the Donner Lake area?
REVIEW OF DONNER LAKE WATER SYSTEM IMPROVEMENTS FINANCIAL STATUS This
item involves the financial report relating to the Donner lake water system acquisition and
replacement project.
Mary Chapman gave a presentation:
• History
0 2001- District acquired and began replacement of the Donner Lake water system
o Work completed in 2005 and cleanup finalized in 2007
o Funds to rebuild came from: bridge loan, internal funds, State Revolving Fund loan, 2006
Certificate of Participation (COP) loan proceeds
o Debt is being paid back through Donner Lake Assessment District payments and
customer surcharge of$6.65 on monthly water bills.
• Source of funds
o State Revolving Fund loan $12,732,965
o Donner Lake portion of the 2006 COPs 1,479,272
o Land Sale 412,156
o Assessment payments received 8,965,264
o Interest earnings 557,215
■ Total $229146,872
• Use of funds
o Capital project/acquisitions costs $14,875,958
o Donner Lake water system purchase 1,316,101
o Bridge loan financing fees and interest 754,428
o Principal and interest payments 2,504,583
o Short & long term investments 2,695,802
■ Total $2291469872
• Debt status
o State Revolving Fund Loan $11,445,947
o Donner lake portion of the 1,758,174
■ Total $13,204,121
There were no comments from the public or the Board.
REVIEW OF AUDIT MANAGEMENT LETTER RECOMMENDATIONS STATUS This item relates
to the review of the recommendations made by Virchow Krause to improve the District's in-
ternal controls and operating procedures.
Mary Chapman gave a presentation about the 2007 audit recommendations
• Information technology
o Use of "strong passwords" and change every 45 days (we will start with 90 days and
implement by end of 2008)
o Use a form to document authorized security
o Review security annually
• Documenting overhead allocation process
. .. o Implemented in 2007
o Review to ensure proper internal controls over overhead allocation process
• Financial reporting- two additional reports recommended
o Budget to actual- staff to address variances over pre-determined threshold
3 Minutes: August 20, 2008
o Executive analysis- two presentations done to date
• I nternal controls
o Communicate with auditors for guidance on new accounting events
o Reduce reliance on auditors in preparing financial statement notes
Board discussion:
• Good to see follow-up on Virchow Krause's suggestions
• Appreciate the information
• Are there all different passwords on each computer?
• Why would staff do the audit notes?
• Financial statements and notes are prepared by the PUD- auditors check them and are
independent
DISCUSSION OF A WEST REED WATER LINE RELOCATION This item involves the financing
and bidding for a West Reed water line relocation.
Neil Kaufman gave a presentation:
• History/background
o Part of Donner Lake Pipelines 2004 Project which included a flow control station and joint
trench running uphill from West Reed Avenue
o Easements were acquired for the facilities and work complete in 2005
• New information
o Property corners describing the easements had been disturbed during construction
o Property corners were recently reset by a licensed surveyor
o Some of constructed facilities are outside the defined easement
o Piping Modification Project to move the facilities scheduled to be complete by October
15, 2008
• Fiscal impact is estimated at$50,000 to $75,000
Board discussion:
• Where are we getting the dollars?
• How can we prevent this from happening in the future?
• Go out to bid now?
• Will the contractor relocate all the boxes?
• How far were we off?
ROUTINE BUSINESS
CONSIDERATION OF MINUTES FOR JULY 16, JULY 23 AND AUGUST 6, 2008.
Director Hemig moved, and Director Thomason seconded, that the Board approve the minutes of
July 16, July 23 and August 6, 2008 as amended for July 16 minutes on closed session "60 day
contingency period", not "90 day".
ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED.
TREASURER'S REPORT: JULY 2008
Approval of the report: Director Thomason moved, and Director Hemig seconded, that the Board
approve the treasurer's report for the month ended July, 2008, and the disbursements through
July 31, 2008. ROLL CALL: Director Sutton, absent; All Directors aye, by voice vote. SO MOVED
4 Minutes: August 20, 2008
CLOSED SESSION
CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO SECTION 54956-8 OF
GOVERNMENT CODE. PROPERTY: 14629 GLENSHIRE DRIVE APN 49-011-29 AND 14630
GLENSHIRE DRIVE APN 49-011-31; DISTRICT NEGOTIATOR: GENERAL MANAGER;
NEGOTIATING PARTIES: KAPPY MANN, COLDWELL BANKER REAL ESTATE; UNDER
NEGOTIATION: PRICE AND TERMS
PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION 54957
(E): GENERAL MANAGER PERFORMANCE PLAN REVIEW
RETURN TO OPEN SESSION
Report on closed session
There was no reportable action.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 9:05.
TRUCKEE DONNER P LIC UTILITY DISTRICT
Tim F. Taylor, a ent
C CO C
Prepared by
Barbara Cahill, Meputy District Clerk
5 Minutes: August 20, 2008