HomeMy WebLinkAbout2008-10-15 Min - Board REGULAR MEETING
October 15, 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 6:00 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: Mary Chapman, Nancy Waters, Michael Holley, Rosana Matlock, Scott
Terrell, Steven Poncelet, Bob Mescher, Ed Taylor, Stephen Hollabaugh and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross
OTHERS PRESENT: Juanita Schneider, Tony Laliotis and Dan Warren
CHANGES TO THE AGENDA
General Manager Holley asked agenda item No. 15, closed session be pulled from the agenda.
PUBLIC INPUT
Juanita Schneider thanked the Truckee Donner PUD for all the work and money they put into the
Senior Center living area.
DIRECTOR UPDATE
President Taylor said he is glad to see two candidates here to stay involved.
CONSENT
AUTHORIZE THE PURCHASE OF LED CHRISTMAS LIGHTS Board Authorization to
purchase LED Christmas lights from Mountain Hardware in Truckee
APPROVAL OF US BANK ADDENDUM TO CALPERS CREDIT CARD USAGE CONTRACT US
Bank and CaIPERS have entered into a new contract; all participants must agree to the
addendum to their contract.
Director Hemig moved, and Director Thomason seconded, that the Board approve the consent
calendar. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED
1 Minutes: October 15, 2008
ACTION ITEMS
SET PUBLIC HEARING DATE AND TIME FOR FY09 BUDGET AND WATER METER
SURCHARGE This item sets the date and time for a public hearing.
Director Hemig moved, and Director Thomason seconded, that the Board set the public hearing for
the Water Meter Surcharge on December 3, 2008 at 6:00 PM or as soon thereafter at the regularly
scheduled meeting.
ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED
AUTHORIZE AGREEMENTS WITH SIERRA PACIFIC FOR UNDERBUILD CIRCUIT DESIGN
AND POLE CONTACTS This item involves approving a Pole Contact Agreement and Engi-
neering Services Agreement for the design of the planned Donner Lake Circuit No. 3 feeder.
Director Hemig moved, and Director Thomason seconded, that the Board approve the Pole
Contact Agreement with Sierra Pacific; authorize the Board President to sign the Agreement
including payment of a one-time charge of $5,000 for use of Sierra Pacific's facilities with the
funding source from Facilities Fees; approve the Engineering Services Agreement with Sierra
Pacific; and authorize the Board President to sign the Agreement including a payment of $31,939
for estimated engineering and design fees with the funding source from Facilities Fees.
ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED
WORKSHOPS
DISCUSSION OF REVISIONS TO DISTRICT CODE- TITLE 7, ELECTRIC SERVICE This item
involves the revisions to Title 7, Electric Service, of the District Code.
Stephen Hollabaugh the highlighted of major changes for Title 7:
• Removal of construction standard information from the Code as these reside in a stand-alone
Construction Standard Manual
• Moved Customer Responsibilities to a separate chapter (7.05) from the District responsibilities
(7.04)
• Clarified delivery, voltage and phase requirements
• Modified and added language to Continuity of Service, regarding emergency interruptions and
scheduled interruptions
• Added new chapter covering power quality and total harmonic distortion (THD)
• Added rights of way, rights of access and easement section
• Modified Temporary Services: temporary services existing for longer than one year will be
required to pay applicable facilities fees and services existing for longer than five years must be
transferred to permanent service
• Updated Customer Generation section
• Added a chapter to describe the Electric System Master Plan
• Modified Electric System Line Extensions section to include language regarding conditions and
cost sharing
• Modified Street and Security Light Service to require that all future street/security lights be
metered and added goal to remove security lights over time
• Re-wrote Service Connections chapter and removed construction standard information
• Added Net Metering chapter
• Clarified Renewable Portfolio Standard definition of Truckee Donner PUD electric qualified
resources
2 Minutes: October 15, 2008
Public input:
• Would like the street light to continue near her home- helps to keep out vandalism
• Maybe efficient bulbs can be put into the street lights
Board discussion:
• Not all streetlights have owners- concern is with streetlights that have no owner and are not
metered- the Board can consider on a case by case basis
• 7.72, Metering- do mixed structures meter individually and do all hi-density residential
structures have separate electric meters
• Need more information about the street lighting as to who owns and who pays
• PUD is a streetlight district and we need a way to keep them on
• Could get Conservation Department involved in replacement of streetlights
• Continue to review the revisions
• 7.64, Net Metering- have there been any changes since the ordinance
2009 BUDGET: PUBLIC INFORMATION AND CONSERVATION DEPARTMENT This item
continues the discussion of the FY09 Budget, specifically for the Conservation Department.
Steven Poncelet gave a presentation on the Conservation Department FY09 budget:
• FY 09 Priorities
o Public information & community relations
o Legislation and regulatory affairs tracking
o Conservation Committee recommendations
o Enhanced public benefit and energy efficiency programs
o New water conservation programs
o California Solar Initiative
o Evaluation, Measurement, & Verification (EM&V) on energy conservation programs
• Significant Cost Drivers
o AB 1890 Public Benefits (Min. 2.85%)
o AB 2021 Energy Efficiency
o Cost-effective energy efficiency programs
o AB 32 climate change legislation
o Emerging water conservation programs
o Conservation Committee recommendations
o Increased customer acceptance of conservation programs
• Legislative & Regulatory Drivers:
o AB 32 climate change legislation
0 33% RPS by 2020
o Increased energy efficiency requirements
o Annual reporting to State through NCPA
o EM&V review of programs
o AB 1890 Public Benefits Program
o AB 2021 Energy Efficiency
o Low-cost options
• Existing Energy Programs
o Rebates
o Low/Moderate Income
o Refrigerator Recycling
o Schools
o Green Partners Hospitality
o Green Partners Retail
3 Minutes: October 15, 2008
o Green Partners Restaurant
o Green Challenge Website
o Green Building
o Million CFL
o LED Holiday Lights
• New Energy Programs
o Green Partners Residential
o Keep Your Cool —Commercial Refrigeration
o LED MR-16 Business Pilot
o Consumer Electronics Education
o Portable Watt-Meters
• New Water Conservation Programs
o TDPUD water-wise demonstration garden
o Low-flush toilets
o Low-flow shower-heads/faucet sink aerators/pre-rinse spray valves
o Large commercial irrigators (Smart Controllers)
o Web-based water-wise garden resource
o Green Partners -Water
• Budget Summary: FY08 $1,289,525; FY09$1,558,575; 20.86%change
• Key Changes in FY09 Budget
o Appx $150K for six new water conservation and efficiency programs
o Appx 10% increase in energy conservation and efficiency- 5 new programs
Public input:
• Can the PUD work with the Fire Department so have defensible space within programs
• CFL drop offs- could the PUD be a drop off site
Board discussion:
• Great presentation- answered all my questions
• Where is the water wise garden going to be
• On the organization chart, is the position title Conservation Administrator or Specialist
• Good report
• Is the solar rebate done for 2008 and is there a new 2009 list
• How does the department get information on legislation
• Emerging water conservation programs- good timing for meters- could be a time saver
• Consumer electronics education would be good
• Glad we are on track with programs
• Like the new Green Partner program for residential- some people may have ideas
• Look at the education of conservation at a broad level- where does this fall
• Look at pier education in classrooms and groups
• Outstanding job- simple to understand the department and its programs
• Deserve a great deal of applause generating the programs out of the Conservation Committee
Report and moving forward
2009 BUDGET: REVIEW OF THE TOTAL BUDGET, APPENDICES AND BOARD
DESIGNATED RESERVES This item will involves a discussion of the total 2009 budget,
appendices and the Board designated reserves.
Mary Chapman gave a presentation:
• Budget Assumptions
o Direct labor costs
4 Minutes: October 15, 2008
o Overtime decreased 5%from FY08 Budget
o Bargaining unit employees increased per MOU
o Non-union employees increased based on CPI
o Net staffing level changes
o Reduced one part-time position
o Broadband —no change from FY08 Budget
o Increased conservation— especially water conservation
o Vehicle replacement reserve fund established
o No electric capital reserve fund established
• Electric FY 2008 FY 2009
o Revenue and Transfers In $25,861,000 $24,930,000
o Operations, Capital &Transfers Out $26,424,000 $24,930,000
o Electric Rate Reserve $ 1,558,000 $ 1,984,000
o Vehicle Replacement Fund $ -0- $ 155,000
• Water FY 2008 FY 2009
o Revenue and Transfers In $17,371,000 $20,692,000
o Operations, Capital &Transfers Out $17,371,000 $20,692,000
o Operating Reserve (6%of revenue) $ 767,000 $ 1,350,000
o Capital Replacement Reserve(2% rev) $ 480,000 $ 674,000
o Vehicle Replacement Fund $ -0- $ 140,000
• Budget Appendices FY 2008 FY 2009
,. o Inventory Overhead $190,000 (17%) $183,000 (24%)
o Admin Overhead $ 60,000 (1%) $ 56,000 (1%)
o Construction Overhead $296,000 (32%) $260,000 (26%)
• Annual Debt Payments FY 2008 FY 2009
o Electric Department $3,615,000 $3,540,000
o Water Department $3,536,000 $3,503,000
Board discussion:
• Good to have a balanced budget and no deficit for 2009
• From the income side, is there anything you can see that would change projections, are we
safe on the income side
• Are there no large land sales the District is relying on
• What was used to project the vehicle usage out for 20 years
• Is this the last time for just a one-year budget
• Do you think the revenue is high for 2009 based on the recession and lack of growth
• Concerned about the drop in facilities fees- would like to talk about strategy in 2009
• Concern about deferring electric capital budget- not a good thing—are we ok to delay
• Curious about the corporation yard-just deferring and not killing
• Are we ok with current storage- not putting District in a panic situation
• Came up with programs to offset the water meter costs and save dollars: part was a committed
savings of $500,000 each year. Where does this show in the 09 budget
• Are we going to use the financial tool to place assumptions how rates look and debt changes.
This helps us look at several years of content
• Maintenance of the headquarters building is a big project
• Presentation was put together well
• Glad for reserve funds
5 Minutes: October 15, 2008
• Fiscal year 2008 revenue for electric and water came in 10% less- how was the anticipated
revenue for fiscal year 2009 calculated
• Concern about the deferral of electric capital projects- am more comfortable after a conversa-
tion with Michael Holley on the methodology staff used
• When General Manager Holley walked in, there was a $500,000 deficit in 2008. His ideas,
management, and interaction with staff and collaboration has worked out well. There can be a
balanced budget without compromising reliability.
ROUTINE BUSINESS
TREASURER'S REPORT: SEPTEMBER 2008
Director Thomason moved, and Director Hemig seconded, that the Board approve the treasurer's
report for the month ended September 30, 2008 and the September 2008 disbursements report.
ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED
APPROVAL OF MINUTES FROM SEPTEMBER 17 AND OCTOBER 1, 2008.
Director Hemig moved, and Director Thomason seconded, that the Board approve the minutes of
September 17 and October 1, 2008.
ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED.
President Taylor reported actions:
The Truckee Donner PUD has entered into an agreement with Howard and Deborah Henn to
purchase a portion of property located at 10513 The Strand, APN 49-240-37.
The Truckee Donner PUD has entered into a tentative agreement with the Town of Truckee to
purchase District property located at 14629 Glenshire Drive, APN 49-011-29.
CLOSED SESSION
CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO SECTION 54956.8 OF
THE GOVERNMENT CODE. PROPERTY: 14629 GLENSHIRE DRIVE APN 49-011-29 AND
14630 GLENSHIRE DRIVE APN 49-011-31; DISTRICT NEGOTIATOR: GENERAL MANAGER
This item was pulled from the agenda.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 8:10 PM.
TRUCKEE DONN UBLIC UTILITY DISTRICT
Tim F. Taylor, Pr ent
Prepared by (_V_QL- c
Barbara Cahill, beputy District Clerk
6 Minutes: October 15, 2008