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Home My WebLink About2008-09-17 Min - Board REGULAR MEETING September 17, 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 6:02 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: Lauren Schaake, Bob Mescher, Neil Kaufman, Kathy Neus, Rosana Matlock, Steven Poncelet, Stephen Hollabaugh, Michael Holley and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Juanita Schneider, Tony Laliotis, Jack Robb, John Carpenter, Dan Warren, Ross Thomson and two other members of the public. PUBLIC INPUT Juanita Schneider asked for the status of her request to the Board on September 3rd regarding a letter to the Donner Lake customers about water meter boxes. President Taylor responded that the letter is on his desk for review and it should be out early next week. Jody Sweet, a resident on Brook Lane, said his home has a 40-year-old Rockwell Meter. People feel they should not have to participate in the new PUD water meter program. They should be grand- fathered in because they already have meters. How were these older meters paid for and were they set up to be read? DIRECTOR UPDATE There were no director requests. PUBLIC HEARING PUBLIC HEARING TO REVIEW COMMENTS FOR REVISIONS TO THE DISTRICT'S CONFLICT OF INTEREST CODE President Taylor opened the Public Hearing. There were no comments. The Hearing was closed. CONSENT CALENDAR Dan Warren wants to make sure the District offers surplus property to public agencies, non-profit and then private entities. Counsel Gross responded that the District follows the statutory requirement. RESPONSE TO THE GRAND JURY REPORT. This item concerns response to the Nevada County Grand Jury report, dated June 3, 2008. 1 Minutes: Sept 17, 2008 CONTRACT EXTENSION TO PERFORM ENVIRONMENTAL CONSULTING SERVICES FOR THE 2009 PIPELINE REPLACEMENT PROJECT This item involves a contract extension for year two with Inland Ecosystems. APPOINT GENERAL MANAGER AS PROPERTY NEGOTIATOR This item involves the appointment of a negotiator to represent the District for District owned land. Director Thomason moved, and Director Hemig seconded, that the Board approve the consent calendar. ROLL CALL: Directors Sutton, absent; All other Directors aye, by voice vote. SO MOVED ACTION ITEMS BID REJECTION - WEST REED AVENUE PIPING MODIFICATIONS This item concerns the bid for the West Reed Avenue Piping Modifications Contract. Director Aguera moved, and Director Thomason seconded, that the Board reject the bid from WES Construction and direct the Water Department to re-bid the project in 2009. ROLL CALL: Directors Sutton, absent; All other Directors aye, by voice vote. SO MOVED AWARD OF A CONTRACT FOR WATER METERS AND AUTOMATED METER READING SYSTEM This item concerns the Request for Proposals for water meters and a new Auto- mated Meter Reading System. Director Thomason moved, and Director Hemig seconded, that the Board award a contract to Measurement and Control Systems for the provision of Neptune Meters and a Neptune/Aclara fixed- base AMR (Automated Meter Reading) System for the Phase 1 Pilot Program, not to exceed $255,000 ($232,000 includes tax, plus a 10%contingency). ROLL CALL: Directors Sutton, absent; All other Directors aye, by voice vote. SO MOVED WORKSHOP 2009 BUDGET: MISSION GOALS AND OBJECTIVES; BUDGET ASSUMPTIONS; DISTRICT LABOR; DISTRICT EXISTING DEBT This item continues the process for preparation of the 2009 Budget. Bob Mescher gave a presentation: • Retrospective changes affecting the 2008 Budget o Electric rates increased 7% o Water rates increased 3% o Direct labor increased o No additional debt incurred o Solar initiative began o Public benefit programs increased o Funding to the reserve accounts increased • 2008 Electric Budget Categories paid by rates o Purchased Power 49% o Labor 20% o Debt 17% o Supplies & Materials 6% o Conservation & Public Benefits 3% o Other 5% 2 Minutes: Sept 17, 2008 • 2008 Water Budget Categories paid by rates o Debt 33% o Labor 29% o Electric Power 15% o Supplies & Material 14% o Water Reserves 6% o Other 3 % • 2009 Budget mission, goals and objectives o Actively seek renewable energy sources as set forth in its Renewable Portfolio o Provide adequate, reliable and high quality water and electrical power service o Manage District resources in an open, responsible, environmentally sound manner at the lowest practical cost • Budget assumptions o Direct labor costs ■ Overtime decreased 5%from 2008 Budget ■ Bargaining unit employees increased 4% per MOU ■ Non-union employees increased based on CPI o Staffing level changes ■ one additional full-time position in Electric Division ■ one reduction part-time position in Electric Division o Broadband — no change from 2008 Budget o Other expenses — no change from 2008 Budget o No new debt o Vehicle replacement reserve fund established o Electric capital reserve fund established o Cost Center 5—General Services Department ■ Eliminated ■ Associated costs allocated to other departments ■ 2008 Budget normalized to compare to 2009 Budget • Department changes/additions o General Manager: Tech Program Admin o Public Information and Conservation: Conservation Admin o Water Utility: Automotive Mechanic, Assistant Mechanic and Facilities Maintenance o Electric Utility/Power Supply/GIS: Warehouse Utility Worker o Administrative Services: Buyer • Current Electric Department debt o Principal Balance as of 12/31/08 $15.2 million o Annual principal and interest payment $3.5 million o Last payment due 1/1/2013 0 2009 payment source = 100% rates o No new debt in 2009 • Current Water Department debt o Principal Balance as of 12/31/08 $41.8 million o Annual principal and interest payments $3.4 million through 2017, decreasing in subsequent years o Last payment due 2036 0 2009 payment source = 53% rates, 15% facilities fees, 32% assessments and surcharges o No new debt in 2009 3 Minutes: Sept 17, 2008 Board discussion: • How is the District cutting back on overtime? • How will the CPI be applied to non-union employee increases? • Appreciate Budget assumptions • Are the Water and Electric capital budgets substantial? • Good to have a sense of how much more in conservation • How did staff come up with the 5% decrease of overtime • Spend the public benefit dollars • Support Services Department gone- but this is just a wash as people absorbed by other departments- so there is no real cost savings • The vehicle replacement reserve fund is new • Good outline • Makes sense to normalize the 2008 budget- is there any savings by dispersing functions ROUTINE BUSINESS CONSIDERATION OF MINUTES FOR AUGUST 20 AND SEPTEMBER 3, 2008. Director Hemig moved, and Director Thomason seconded, that the Board approve the minutes of August 20 and September 3, 2008. ROLL CALL: All Directors aye, by voice vote. SO MOVED. TREASURER'S REPORT: AUGUST 2008 Approval of the report: Director Thomason moved, and Director Aguera seconded, that the Board approve the treasurer's report for the month ended August, 2008, and the disbursements through August 31, 2008. ROLL CALL: Director Sutton, absent; All Directors aye, by voice vote. SO MOVED 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 RETURN TO OPEN SESSION There was no reportable action. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 7:53 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Tim F. Taylor, Pr n Prepared by lt� 6vii^ Barbara Cahill, Feputy District Clerk 4 Minutes: Sept 17, 2008