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HomeMy WebLinkAbout2007-09-19 Min - Board REGULAR MEETING September 19, 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 6:02 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: Mary Chapman, Ed Taylor, Neil Kaufman, Steve Hollabaugh, Scott Terrell, Kathy Neus, Alan Harry, Nancy Waters, John Ulrich and Barbara Cahill CONSULTANTS PRESENT: Steve Gross, David Carlson Sr. and David Carlson Jr. OTHERS PRESENT: Frank and Juanita Schneider, Dan Warren, Mike Ryan, Bob Johnston, Andrew Cristancho, Dan Dickerson, Doug Grandy, Carol Pauli, Julie Vietor, Jim Wirgler, Joanna Walters, John Eaton, Ann Colin Debbie Fitzgerald, Bob Thomas, Mark Brown and 1 other member of the public. PUBLIC INPUT Dan Warren asked staff if they would reconsider hydro at Boca as part of the Purchase Power Plan. ACTION ITEMS CONSIDERATION OF A GRANT OF EASEMENT FOR A PUBLIC BIKE/PEDESTRIAN TRAIL. a. This item involves an easement on the District's Steele property(Bridge Street and Trails End Road). Director Hemig and Director Aguera seconded, a motion to grant a right-of-entry to East West Partners and the Town of Truckee to allow construction of a public bike/pedestrian trail; direct staff to work with the Town of Truckee to prepare an appropriate easement document; and allow staff the authority to be sure the intended use of the future District corporation yard site is not compromised. ROLL CALL: Director Sutton, no (premature, backs the District into an arrangement and delegates au- thority to others); All other Directors, aye. SO MOVED. CONSIDERATION OF AN EXTENSION OF THE BOARD APPROVED CONSERVATION PROGRAM. a. This item relates to the extension of the energy conservation plan and associated funding for rebates and other program elements. Director Aguera and Director Sutton seconded, a motion to extend the enhanced Conservation Pro- gram, with expenditures not to exceed the original budgeted amount of $118,500 to December 31, 2007. ROLL CALL: All Directors, aye. SO MOVED. 1 Minutes: Sep. 19, 2007 WORKSHOPS REPORT FROM THE DISTRICT'S CITIZEN ADVISORY WATER AND POWER CONSERVATION COMMITTEE. a. This item involves reviewing the monthly activity report of the Citizen Advisory Water and Power Conservation Committee Doug Grandy, Committee Chairperson gave a report of the conservation accomplishments: • Developed understanding of District's load profile as relates to energy/demand reducing strategies. • Adopted 12 month schedule for meeting milestones • Formed subcommittees: strategies &tactics, outreach and Policy & Fiscal • Elected Joanna Walters as Vice Chair • Adopted a statement of "Charge to the Committee,, Mr. Grandy then went over some slides: • Max load day to see when Kw are used • Loading order/marginal cost- how would proposed measures play out • Future supply resources and energy conservation measures- new programs to save energy • Energy Conservation Measures- hypothetical chart of cost effectiveness & potential mw savings Board discussion: • Thanks for the committees time and effort • Good job • What were the results of the conservation budget discussion with staff? • Asked Mr. Grandy to expand on the conservation cost comment in the August 16 minutes • Committee has done a lot of work in two meetings • Happy with the report • Want to know dates of the scheduled meetings • Tie the chart meeting schedule to the five goals of the committee • Concerned about the secretary situation Director Sutton asked that consideration of a secretary for the conservation committee be placed on the next Board agenda. DISCUSSION OF WATER ISSUES FOR VARIOUS PRIVATE WELLS ALONG PROSSER DAM ROAD. a. This matter involves the discussion of water supply in the Martis Valley Basin. Director Hemig recused himself. Ed Taylor, District Water Superintendent, introduced the two consultants assisting with the presenta- tion: David Carlson Sr./ Aqua Hydrogeologic hydrologist and David Carlson Jr. Aqua Hydrogeologic modeler. • In 2001, Nimbus Engineers completed a report on the Martis Valley Groundwater • Sustainable yield (continue to extract form year to year) was 24,700 acre feet of water • Nimbus worked with Placer County Water Agency and Northstar to assess build out • Three separate consulting firms evaluated the Nimbus report and concluded that Nimbus used conservative numbers and the sustainable yield was more like 34,000 acre feet/year • TDPUD uses the Nimbus report as background to develop new well sources which go after deep water between 300' and 900' where there is significant recharge • TDPUD monitors the new wells for draw down and recharge and sees the data is in line with the Nimbus report 2 Minutes: Sep. 19, 2007 • Last year, the District used 7,300 acre feet • Handout map showed golf courses and well locations • Three layers: sand, basalt, gravel • Slides of Prosser Dam area private well draw downs: 1977, 1987, 1997, 2007 Public input: • How do the deep water wells recharge- horizontal flow or vertical • I have monitored well and there has been o draw down until this year- 32' in 6 months • More than 5 golf courses affect the Martis Valley Aquifer • Models are fantasy- no connection between superficial layers and deep layers- can't seal • Need new data and new study- Town, PUD and TSD should do a new study • When new wells were dug, they have not come across clay • Why isn't the recharge just gravity • Shut down wells nearby to see if it makes a difference in the Prosser Dam Road area • Told by well driller that there is no rock on west side of Prosser Dam Road- only gravel, sand and fragmented rock. Driller has never seen clay layer at 300' • Environmental Health issues well permits- only ones recently were for Prosser Dam Road • Looking for a solution, not pointing fingers • Dry well depths: East side 138', 125', 125' and West side 125', 142', 140' • What is the future in the Martis Valley area if there is a drought • PUD has a responsibility to provide water to Truckee residents • With the Town of Truckee's 2025 plan, there will be more impact • Finding water at 280' • Is the water that the Prosser Dam Rd residents are getting from a small watershed? • Donner Lake residents voted to become part of the TDPUD water system and formed an as- sessment to pay the cost • Global issue for community • Would like to see a soils map • Is there information on when PUD wells went in and what happened to the draw down? • This meeting has been a lot of fact finding- appreciate the PUD is available • Residents prefer to have their own wells • Is there a nearby fault or a predicted phenomenon? If people re-drill, how do we know the well will not fail in the next 10 years? • Want a clarification on what is going on — need more information • Is this an indication what is happening to the aquifer? Loosing water-will we run out. • The planning commission keeps granting all the development • Prosser Dam Road residents do have the burden of proof Board discussion: • Get well logs for the west side of Prosser Dam Road • One quadrant of wells are failing-find out why only here • Prosser Dam Road residents can buy into the TDPUD water distribution system- developers have to pay to connect to the system • Where do the Grays Crossing and Old Greenwood golf courses draw from? • Additional well logs should be submitted to Ed Taylor • Residents need to meet with staff for the next step- where to go from here • Is there a way to test this small area? • Board may still want an independent opinion from a hydrology firm regarding this phenomenon that has occurred. 3 Minutes: Sep. 19, 2007 • Hiring another firm to check the Prosser Dam area data would spend District money- maybe the residents need to hire their own consultant to do an independent audit. • After all this discussion —are we going anywhere- need to find a plan. Counsel Steve Gross stated the Prosser Dam Road residents are electric customers, not water. There is no legal obligation of the water utility customers to pay for them to have water. Counsel Gross wanted to offer his observation and interpretation to paraphrase Director Sutton that there is not enough information or data yet to determine whether or not the District use or pumping of the aquifer is having an effect on the wells in the Prosser area. "And what I heard and interpreted the information from tonight is we do have data that dates back to the Sharp study from the 1970's which has been built upon over the years as recently to 2001 with the Nimbus study, and supplemented by the additional data collected by Mr. Carlson from the state. What I have heard is that evaluating all the data has shown that as of right now, based on the best information that we have, we don't see there is a connection between our use of the aquifer and these other wells. I do not know if has been stated that way or that clearly, but this is the way I have interpreted the information. I heard President Taylor sug- gest that if the District conducted another study, there still might be concern, suspicion, or maybe not acceptance of that study or the results by the Prosser Area residents." Mr. Carson Sr. was asked to explain: • Prosser Dam Road domestic wells are experiencing draw down as there is a limited amount of water available in this area whether coming from the alluvial or the underlying basalt material • Too many wells in one area with a limited amount of recharge • The east side of Prosser Dam Road has the thicker first layer of material- so there is not as much of a problem. • To the south 4,000' feet away is the Prosser Village Well that is sealed down to 300 feet. The majority of the water in the Prosser Village and Old Greenwood wells is extracted from zones 2 and 3 below 300 feet. Board gave staff direction to start discussions with the Prosser Dam Road neighborhood to explore a direction. WORKSHOPS- BUDGET DISCUSSION OF THE MISSION/GOALS/ OBJECTIVES a. This item relates to the Goals and Ob- jectives and how they relate to budget programs and activities. Mr. John Ulrich wanted to explain that the budget is based on the District Mission Statement with its goals and objectives. This connection will be carried throughout the budget process. PURCHASE POWER PLAN a. This item relates to the 2008 Purchase Power plan scenarios Steve Hollabaugh is looking for Board direction on how to budget for 2008 and what to do for power supply in the first four months of 2008. • Existing power supply contract expires at the end of 2007 • Future portfolio balances: conservation, renewable resources, resource diversity, contract dura- tion, cost and price volatility • Conservation: considered the first resource, may account for 1-3% of total load, could offset growth that would require additional resources and may shave appx 1 MW from monthly average energy requirement. 4 Minutes: Sep. 19, 2007 • Renewable resources could provide nearly 25% energy: Stampede Hydro, Rye Patch Geother- mal, UAMPS Shaped Capacity& Energy (SCE) Project • Additional resources possibly available: Payson Natural Gas, Empire Geothermal (2) • 2008 expected Resource Plan: diversity, minimal price volatility, all in cost range of $60/MWh; current gas forecast & average heat-rate, short 1st quarter position needs addressed; projected wholesale power cost $9,750,443 . • 2009 expected Resource Plan: all in cost range of $62/MWh, energy from SCE, Geothermal, hydro and natural gas • 2008 risk to budget o Reduced geothermal- all in cost$62.8/MWh- projected wholesale power cost$10,340,000 o Worst case-reduced geothermal & SCE unit down- projected wholesale power cost $11,620,000 • Risk vs benefit: short position in first four months of 2008 remains to be addressed • 2008 Purchased power detail includes energy supply, Sierra Pacific Power Co transmission, NCPA scheduling and Western Area Power Assoc cost/Credit for a total of$10,692,765 • Expected variation from the 2007 budget: Best case $1,405,934, almost worst $1,995,492 and worst case $3,275,492 • Future actions: approve Payson Project and Empire Farm Geothermal Public Input: • Long term aggressive stance on geothermal • What are the durations of the various contracts? Board Discussion: • The Board has decided it wants a diversified portfolio and renewables through a policy decision • Ok with the path • Two to three years ago, the Board would have wanted just a firm power contract- but now the Board wants a diversified portfolio and renewables • Recommend the mid safe/most likely case • Use the rate stabilization in 2009 if we need to • Take action and lock in secure price for the first 4 months of 2008 • Believe geothermal is risky- prefer to see a firm power commitment • Shoot for the middle case scenario • Comfortable with minimum risk- use the rat stabilization to offset risk • Recognize Steve Hollabaugh has authority through the resolution • OK to address budge with middle ground and do what we need to to cover the 4 month gap • Resolution refers to Constellation- is it broad enough to add more energy President Taylor asked the Board if its direction to staff is to use the middle ground power plan to budget and that Steve Hollabaugh has the backing of the Board to address the 4 month gap. Directors Aguera, Thomason and Hemig agreed. No action is needed as a resolution is in place. Director Sutton objected to the interpretation of the Board that they can take action and give direction on a workshop item. Director Sutton asked President Taylor for a roll call vote to have on record that the Board major- ity favored a certain direction. Counsel Gross's interpretation is that the District has a resolution with authorization where staff has acted under this in one fiscal year to impact another fiscal year before a budget is adopted. Part of the concern is to minimize the risk of the price of energy by acting under this authority. But staff is con- cerned that the Board will come back and ask how is it that you obligated the District in the budget process to this electric price before we even did the budget. There is a sensitivity to bring this informa- tion to the Board to say this is the direction that is prudent for the District to move in. But if the Board 5 Minutes: Sep. 19, 2007 says they are really uncomfortable having this done in a workshop and need to get the budget process done before obligating the District into that fiscal year, the board could say bring this back for further discussion and clear direction. But this could have a huge risk. WATER DEPARTMENT a. This item relates to a COP committee update Ed Taylor, Water Utility Manager, displayed a cash flow chart which detailed COP funds that would be spent at various increments through 2010. He also talked about the status of priority 1 pipelines to date, and planned construction for 2008, 2009 and 2010. Board response: • Committee meeting was to see that COP funds are properly managed- all looks good • Happy with the budget to date- bid early to get good prices • Looks good b. This item relates to the Water capital activity Ed Taylor, Water Utility Manager, went over the Water Department capital budget for 2008 in the amount of $6,527,212: SCADA, pipeline replacement, Donner Crest to Northwoods pipeline, residential water meter study, Northside well arsenic treatment, Fibreboard well, Stockholm booster station, emer- gency power supply for pump stations, vehicle replacement and test wells. ROUTINE BUSINESS STAFF REPORTS Director Sutton asked to have staff give a report at the next board meeting about the Hirschdale arsenic treatment and letters that went out. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 11:25 PM. TRUCKEE DONNER PUB TILITY DISTRICT Tim F. Taylor, Pr�snt LL� Prepared by R Barbara Cahilli Deputy District Clerk bhc 6 Minutes: Sep. 19, 2007