HomeMy WebLinkAbout2007-10-17 Min - Board tr . REGULAR MEETING
October 17, 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 6:00 PM in the TDPUD Board room by President Taylor.
ROLL CALL: Directors Ron Hemig, Patricia Sutton, Tim Taylor and Bill Thomason were present.
Director Joe Aguera was absent.
EMPLOYEES PRESENT: Mary Chapman, Scott Terrell, Alan Harry, Ed Taylor, Neil Kaufman,
Kathy Neus, Nancy Waters, Steve Hollabaugh, John Ulrich and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross, Heather Renschler, Jim Brands and Doug Boleyn
OTHERS PRESENT: Frank & Juanita Schneider, Howard Wright, Joanna Walters, John Eaton,
Doug Grandy, Bob Johnston, Pat Waite, Kappy Mann, Jennifer Boehm, Bob Mescher, Carol Pauli ,
Cristina Wooley, Gary Jones, Debbie Fitzgerald and 1 other member of the public.
PUBLIC INPUT
Carol Pauli, Prosser Dam Road resident, asked the Board to consider holding the joint meeting
with the Town of Truckee on November 13, 2007 at the Town council chambers. She feels there
will be a large number of people who plan to attend.
Cristina Wooley, representing Hidden Lake Properties and Ciro Mancuso, came to talk about the
District's position of withholding services to Ciro Mancuso's projects.
• A number of development agreements are being violated by the District's position.
• The water being shut off to Building J is a credibility issue and the District's position was
improper. There is a water development agreement for Building J where the District would
provide water service upon conditional acceptance and payment of fees for setting the meter.
• The District has made a decision at this point to withhold services on unrelated projects relat-
ing to an invoice that has yet been unpaid by Hidden Lake Properties for the sole reason that
the District has withheld documents that have been reasonably requested.
• Mr. DeCuir is saying that Mr. Mancuso or Hidden Lake Properties should just pay the invoice
and his fees. The documents have finally been received and are being reviewed. There are
inaccuracies in the invoice.
• 1 am asking the Board direct District staff to immediately begin providing services in order to
avoid litigation and turning to the courts.
• The government code does state that you are able to provide direction to staff — particularly
when it is in the interpretation of agreements and their duties. Secondly, even though it is
non-agendized, if you do believe it is considered action by the Board, you would need to dis-
cuss and take action.
• Damages are being incurred on a daily basis by the District's decision.
President Taylor believes the Board cannot take action on something that is not on the agenda.
Counsel Gross said that is correct and understands that Mr. DeCuir did not give the Board advice
on that matter and concurs with his advice on that. Director Sutton feels there should be some
clarification of information. President Taylor said the Board could address this at the special board
meeting on October 23, 2007.
1 Minutes: October 17, 2007
The Board made a decision to move up item #19, closed session.
CLOSED SESSION
PURSUANT TO GOVERNMENT CODE SECTION 54957, DISCUSSION OF THE CANDIDATE
LIST FOR GENERAL MANAGER, RALPH ANDERSEN, ASSOC.
RETURN TO OPEN SESSION
No reportable action.
WORKSHOP- SPECIAL
REPORT FROM THE DISTRICT'S CITIZEN ADVISORY WATER AND POWER CONSERVA-
TION COMMITTEE. a. This item involves reviewing the monthly activity report of the Citizen
Advisory Water and Power Conservation Committee, with possible direction or action by
the Board.
Doug Grandy, Committee chairperson, thanked Mary Chapman for her finance presentation at the
last meeting. The committee's overall schedule is on track and they have hit the milestones. There
are three subcommittees. Fiscal/policy works on electric energy measures, using an evaluation tool
for cost effectiveness. Strategy/tactic is using California E3 model for load and profile. Outreach
are talking about ideas and testing.
Board discussion:
• How is attendance?
• Is this size group working well?
• Has staff support been ok?
• Thank you for the report- it helps to see what the committee is looking into.
• Seems like the chair is moving forward and getting help from staff.
DIRECTOR UPDATE
UPDATE FROM LEGAL COUNSEL REGARDING DIRECTOR REQUEST
a. Representation by General Counsel.
Counsel Gross stated that Porter Simon represents the District as a legal entity and takes
direction from the highest body/officer with matters.
Board comments:
• Is the 1981 resolution appointing general counsel adequate?
• The reason for the inquiry is that during the Skelly hearing, the Board had to retain an
outside counsel
• District may want to have different counsel on employee matters so general counsel
does not have to be excused in employee issues
• Bring a new updated agreement to the board for general counsel
b. Representation of Unrepresented Employees (attachments: Agency Shop Require-
ment, Nov. 19, 2001 and Agency Shop Issues, April 3, 2002).
Counsel Gross stated that according to Government Code 3502 public employees have the
right to decide for themselves whether they want to be represented by an employee organiza-
tion and that the District cannot force them to be represented.
2 Minutes: October 17, 2007
Board comments:
• Non union employees piggy back on the union agreement
• Appropriate to appoint the General Manager to represent unrepresented employees
THIS ITEM PROVIDES TIME FOR A DIRECTOR TO SUGGEST/REQUEST NEW OR PREVIOUS
ITEMS FOR FUTURE AGENDAS.
Remind staff to cover bottled water, water meters and low-income water and electric rates.
ACTION ITEMS
CONSIDERATION OF A SELECTION PROCESS FOR THE HIRING OF THE GENERAL
MANAGER AND SETTING A SCHEDULE FOR INTERVIEWS. a. This item involves the
process the Board, or its designated Board committee, wishes to use to determine which
candidates should advance and setting an approximate timetable for interviews so meeting
dates can be coordinated.
Director Thomason moved, and Director Hemig seconded, to set a timetable for candidate review
and interviews of potential dates of October 23, November 6 &8 and week of December 3.
ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED.
Director Sutton moved, and Director Thomason seconded, to place an action item on the agenda
for Tuesday October 23, 2007 to discuss with Ralph Andersen & Assoc. the opportunity for the
interested members of the public to be involved in the General Manager selection process.
ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED.
CONSIDERATION OF A CLOSE OUT CHANGE ORDER AND A RESOLUTION ACCEPTING
THE CONDUIT INSTALLATION —2007 PROJECT AS COMPLETE AND ISSUING A NOTICE OF
COMPLETION. a. This item involves the closeout of the Conduit Installation — 2007 Project
contract to A& K Earthmovers.
Director Hemig moved, and Director Thomason seconded, to authorize Contract Change order
No. 1 in the amount of $1,693.00 credit to the District from A & K Earthmovers, bringing the
contract amount to $123,930; and adopt a resolution accepting the Conduit Installation-2007
project as complete and authorizing the filing of the Notice of Completion.
ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED.
WORKSHOPS
DISCUSSION OF SB1, SOLAR INITIATIVE PROGRAM, WITH POSSIBLE DIRECTION OR
ACTION BY THE BOARD. a. This workshop involves a presentation to explain the Solar
Initiative Program
Jim Brands and Doug Boleyn of Efficiency Services Group were hired by the TDPUD in June 2007
to assist with the Solar Initiative. Their group now provide services to 16 utilities, including 6 with
Solar Initiative Programs. They explained the requirements of California SB1 and the basic
photovoltaic (PV) system technical requirements.
Kathy Neus gave a presentation on the TDPUD Solar Initiative program:
• Total incentive estimate is $177,400 average per year for 10 years (the dollars are
calculated on .23%of Publically Owned Utility load)
• The goal is 1610 kilowatts
3 Minutes: October 17, 2007
• Who should receive rebates: residential, commercial, non-profit government?
• How much incentive/rebate per watt installed: $2.80, $4.00, $5.00?
• Minimum size of PV system: should rebates be for many small systems or a few large
systems?
• Performance base is part of the incentive
• Schedule displayed possible steps of kilowatts and incentive dollars, and another schedule
exhibited possible annual incentive schedule
• Have a program that is suited to the Truckee service area
• A useful web site is: findsolar.com
• As the years progress, the incentive goes down due the decline in the price of the systems.
Board comments:
• What about photovoltaic systems installed in the last year?
• Is this only for individual projects?
• Incentive needs to be a decent size- the most bang would be for residential
• Visibility is important and that the public understands the program
• Would there be a problem with snow on roof to discourage solar?
• There are other challenges with exposure to sun- such as trees and minimal sun in winter
• Can the incentive be changed later?
• What if all the money is not spent in 10 years?
• Can local contractors install the systems?
• Who pays for the marketing?
• What does Efficiency Services Group recommend as a starting point for the PUD?
• Review what other utilities are doing.
• How to set the incentive for Truckee specifically.
• Do not tie solar incentive with having to do energy efficiency on a house
• Evaluate each incentive and performance standard for Truckee area
• Can solar be installed on metal roofs?
• Consultants should check Truckee for roof types, topographic, trees—assess the area
• Cannot force people to participate
• Need a frame of reference and examples- need to package the incentive
• Move forward with a plan
DISCUSSION OF THE MISSION/GOALS/OBJECTIVES AND UPDATED BUDGET CALENDAR
a. This item relates to the Goals & Objectives relation to the budget & an updated budget
calendar.
DISCUSSION OF DEPARTMENT 2008 BUDGETS This item relates to each department's
budget with possible direction or action by the Board.
Board of Directors/General Manager: John Ulrich
• Challenges
o Broadband business planning
o Regulations & legislation
o Organization structure & policies
o Renewable resources
• Expenditure comparison
o Board of Directors: 2007$153,385/2008$168,672 (2008 election $15,000)
o General Manager: 2007$975,245/2008$753,369 (telecom legal reduction $175,000)
• Capital Projects
o Corporation Yard
4 Minutes: October 17, 2007
° - o Board microphones
o Board- IT display
o Streaming video of board meetings on internet
Administrative Services: Mary Chapman
• Priorities
o Customer activities
o Collections
o Accounting and payroll transactions
o Developer &customers billings for construction and other services
o Develop policies & procedures
o Computer, server, equipment & software upgrades
o Employee development, set goals, evaluate
o Reports to Board of Directors & staff, informational workshops
o Develop disaster recovery plan
• Budget Increases
o Labor& Benefit- union contract & management/exempt salary scale
o Organizational improvement &succession planning
• Capital Improvement
o Computer systems
o New reader pickup truck- current SUV to pool vehicle
o Upgrade meter reading system
o Upgrade archiving system
o Upgrade IVUE billing &accounting server
Conservation: Alan Harry
• Priorities
o Legislation & regulatory affairs
o Public Benefit Programs
o Water Conservation
o California Solar Initiative
o Energy Efficiency
• Quantifiable changes
o Increased purchase of renewable energy
o New Energy Efficiency goal of .59%annually
o Increase rebate & education outreach
o New mandated Solar Rebate program
o Increased state legislation & regulations
• Budget Changes
o Public Benefits increase of $123,495 (based on 2.85% of 2007 energy sales)
o New solar initiative- raise $177,400 through new customer charge
o Increased labor for AB2021 Efficiency Program, legislation & regulation and education
& outreach- requires transfer of a portion of labor from GM dept
General Services: Alan Harry
• Priorities
o Maintain District Facilities & Equipment
o Purchase and house materials &supplies
o Pursue 180 Connect broadband opportunity
• Quantifiable changes
o Budget increase in labor- personnel transfer from GM Dept for work safety, broadband
and leg & regulation
5 Minutes: October 17, 2007
• Capital Improvements
o ADA facility upgrade
o Security entry system
o Patch & paint headquarters building
Electric: Steve Hollabaugh
• Priorities
o Maintain District electric distribution facilities & equipment
o Purchase materials & supplies in a cost effective manner
• Budget Increase of $140,269 primarily due to approved Union contract
• 2008 Highlights
o Continue right of way tree and pole clearing
o Training: both standard and safety- similar to 2007 budget
o Materials & supplies cost is similar to 2007 budget
Water: Ed Taylor
• Priorities
o Focus on operation and maintenance rather than on repair
o Purchase materials & supplies in a cost effective manner
• Budget increase of $209,839 primarily due to approved Union contract
• 2008 Highlights
o Continue pipeline replacement
o Continue installation of new facilities
o Conduct water meter study
o Continue operations & maintenance programs and safety training programs
Board comments:
• Not aware there is an election charge
• Is the telecom legal reduction due to the broadband lawsuit?
• What components increased the administrative services by 8%?
• What employee is doing more tasks in the General Services from the GM department?
• New California Solar initiative creates work for staff
• Do the PUD electricians work on pump stations?
DISCUSSION OF OVERHEADS AS THEY RELATE TO THE BUDGET, WITH POSSIBLE
DIRECTION OR ACTION BY THE BOARD.
Mary Chapman gave a presentation of overheads and other appendices as they relate to the
budget:
• District headquarters costs are paid by the electric department and water department is
charged for 50%
• Transportation overhead cost per hour is $10.05 and is calculated by using the cost of
operating, maintaining and replacing vehicles and equipment divided by the direct labor that
uses the vehicles
• Inventory overhead rate is 16.59% and is calculated by the cost of purchasing/warehousing
divided by inventory issues
• Administrative overhead rate is 1.16% and is calculated by supply costs divided by
productive labor
• Construction overhead rate is 28.95% and is calculated by a 4 step process involving
capitalized labor and total labor costs
• Replacement schedule lists all vehicles and equipment for each department, condition,
miles and year to replace.
6 Minutes: October 17, 2007
DISCUSSION OF RESERVE FUNDS AND THE RATE STABILIZATION FUND AS THEY
RELATE TO THE BUDGET AND IMPACT ON RATES, WITH POSSIBLE DIRECTION OR
ACTION BY THE BOARD.
Mary Chapman presented the status of reserve funds, which are used to build cash:
• Electric rate reserve fund (2%) will have an estimated balance at the end of 2008
$1,686,354 (includes current balance, transfer from monthly billings and interest)
• Proposed electric public benefits fund- new
• Water operating reserve (6%) will have an estimated balance at the end of 2008 $797,526
(includes current balance, transfer from monthly billings and interest)
• Water Capital reserve (2%) will have an estimated balance at the end of 2008 $510,947
(includes current balance, transfer from monthly billings and interest)
Board comment:
• If power goes up, can the electric rate reserve fund be used instead of a rate increase?
DISCUSSION OF REVENUES AND A RATE CHANGE, WITH POSSIBLE DIRECTION OR
ACTION BY THE BOARD. a. This item relates to how revenues and budget factors will affect
and drive a rate change.
Mary Chapman presented revenue and a rate change:
• Electric
o $28,094,411: Total revenue & transfers In (sales, 9.94% rate increase, Solar initiative,
customer contributions/developer fees, facilities fees, building fund and sales of
property)
o $28,094,411: Budget operations (all departments), capital projects and transfer out to
2003 COP, rate reserve and public benefits reserve
• Water
o $18,072,565: Total revenue & transfers In (sales, fire protection, customer
contributions/developer fees, loan proceeds, facilities fees, Donner Lake Assessment &
surcharge, Glenshire surcharge, meter reserve fund)
o $18,072,565: Budget operations (all departments), capital projects and transfer to
unrestricted reserve and capital reserve.
Board comments:
• The rate increase is determined by the income and expenses
• Public agency needs to cut the budget and not raise the rate
• Electric rate increase is due to supply- so much of the electric is fixed
• Maybe we can access more geothermal
• Could defer 2%electric reserve fund for one year, but that would weaken the reserves.
• Was there any commitment from Constellation for power
• Aren't our renewable targets higher than required compared to Sierra Pacific Power
or PG&E
• This is a larger rate increase than in previous years
• Understand power costs are higher
• Is there any room in operations to reduce expenses?
• The District needs to spend money wisely
• Power supply is the largest part of the electric rate increase.
• No big ticket items to drop the dollars down
• Balance risk with maintaining the mission goals and objectives
7 Minutes: October 17, 2007
DISCUSSION OF SETTING PUBLIC HEARING DATES FOR THE 2008 BUDGET AND RATE
CHANGE, WITH POSSIBLE DIRECTION OR ACTION BY THE BOARD.
Public hearing dates of November 7 and 19 were set for the 2008 budget and electric rate change.
The water rate public hearing will be set for December 5, 2007.
ROUTINE BUSINESS
SET A DATE FOR SECOND BOARD MEETING IN NOVEMBER: NOVEMBER 21 OR 28.
After discussion, the board agreed to hold the second board meeting on November 19, 2007.
TREASURER'S REPORT
Approval of the report: Director Hemig moved, and Director Thomason seconded, that the Board
approve the month ended September 30, 2007.
ROLL CALL: Director Aguera, absent; All Directors aye, by voice vote. SO MOVED
Approval of disbursements: Director Hemig moved, and Director Thomason seconded, that the
Board approve the September 2007 disbursements report.
ROLL CALL: Director Aguera, absent; Director Sutton, no (feels the Board should approve the
checks before they are mailed); All other Directors, aye. SO MOVED.
CLOSED SESSION
CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO SECTION 54956.8 OF
THE GOVERNMENT CODE. PROPERTY: 14630 GLENSHIRE DRIVE.
RETURN TO OPEN SESSION
No reportable action.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 11:25 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
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Tim F. Taylor, Pre ' nt
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Barbara Cahilt, Deputy District Clerk
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8 Minutes: October 17, 2007