HomeMy WebLinkAbout2007-11-07 Min - Board REGULAR MEETING
November 7, 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 6:01 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: Bob Meschler, Mary Chapman, John Ulrich, Tricia Phillips, Alan Harry,
Steve Hollabaugh, Neil Kaufman, Nancy Waters, Ed Taylor, Joe Horvath and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross
OTHERS PRESENT: Frank and Juanita Schneider, Robert Mowris, Dan Warren, Ronnie Colby,
Brian Woody, Howard Wright, Gerald Herrick, Eric Perlman, Jill Vacchina and Peggy Herrick
PUBLIC INPUT
Eric Perlman spoke for the conversation committee and would like to have Robert Mowris present
ideas to the board on the Power of Conservation. The committee is eager to hear the Board's input
on Mr. Mowris' report.
Summary of Programs Supported by the Conservation Sub Committee
• Rebate for products and services: CFL's, insulation, windows, duct sealing, heat pumps,
water heaters
• Low and moderate income: help local employees to conserve energy
• Appliance recycling: refrigerators and freezers will create annual savings
• Truckee climate challenge: awards to promote and install energy and water efficiency and
renewable energy projects.
• Green Neighborhood: energy efficiency measures & education-install CFL's, shower heads,
aerators, weather-stripping, duct sealing, etc
• Green Schools & energy education: K-12 & Sierra College- building efficiency, kit of
measures, student home audit form, and educate students to save energy and teach about
renewable energy
• Green Partners: encourages retail, restaurant, hospitality to install energy efficient products,
implement energy efficient building technology and sell energy efficient products and
services.
• Green builder & installer: promotes LEED certification, solar and energy and water
conservation.
• Million CFL: giveaway & incentives plus recycling of CFLs over 10 years
• TDPUD power of conservation website: education, audits, installed measures, advertising,
events, tracking, reporting and evaluation, measurement and verification.
• Work co-operatively with Southwest Gas: switch from electric to gas water heating.
• Other: on bill financing, solar water heating, solar electric PV
1 Minutes: Nov. 7, 2007
Board input:
• This is only public input, the Board cannot act.
• Would like conservation committee to come back with recommendations and implement-
able programs.
• Want the conservation committee to move forward
• All for the programs
• Want to see the Board give direction to conservation committee with a proposal
• Want to knock off 1 Mwh in 2008
• Good time to budget for new conservation programs
Public input:
• Conservation committee supports Robert Mowris proposal
• CFLs burn out and cannot throw them out as they are hazardous waste- would like the board
to discuss use of the PUD as a drop off point for the CFLs- easy way to keep out landfills.
DIRECTOR UPDATE
This item provides time for a Director to suggest/request new or previous items for future
agendas. (Each Director will be limited to three(3)minutes).
Director Sutton would like a workshop on bottling water to discuss the feasibility and profitability.
President Taylor would like to request a director or two to be available to staff to bounce power
issues ideas off of. Director Hemig agreed this would help in the test of reasonableness.
WORKSHOPS- BUDGET
DISCUSSION OF THE MISSION/ GOALS/ OBJECTIVES a. This item relates to the Goals and
Objectives relation to the budget
DISCUSSION OF THE DRAFT BUDGET FOR 2008, WITH POSSIBLE DIRECTION OR ACTION
BY THE BOARD. a. This item relates to review of the 2008 budget
There was no public input
Board discussion:
• Would like more time to check the budget in detail
• Look at large variances between 2007 and 2008
• Does the General Services Department repair the building?
• Clarification of PUD financial involvement of a building on West River Street
• Amount of dollars appropriated for training personnel and higher education.
• Succession planning, specifically for the Administrative Department
• Is the 9.94% electric increase figured into the water budget?
• Why is the transportation overhead an our cost and not a percent?
• The cost of hiring someone outside the PUD to paint the building could triple the cost.
• Why is the transfer in from restricted funds-facilities fees a 399% increase?
• Why is the General Manager budget down 24%?
• Staff was very good with presentations- no shocks in the draft budget book
2 Minutes: Nov. 7, 2007
DISCUSSION OF THE DISTRICT FINANCE MASTER PLAN, WITH POSSIBLE DIRECTION OR
ACTION BY THE BOARD. a. This item relates to the 2008 budget calculations and scenarios.
Mary Chapman stressed to the board that the debt service coverage requirement needs to be
kept in compliance. Tricia Phillips and Mary Chapman covered various scenarios by changing
the electric rate increase on the Financial Master Plan spreadsheets.
Board discussion:
• Interesting to see the built in assumption of revenues from one year to the next.
• Is there a built in factor for reserve accounts?
• What would a 1% rate increase in 2009 do and a 2% growth from 2010-2013 do?
• 2003 Idacorp COP goes away in 2013
• Market price for power is mid to high price
• If pass a smaller rate increase and fall below the debt service coverage requirement,
can't the PUD just raise rates?
DISCUSSION OF THE PROPOSED ELECTRIC RATE CHANGE, WITH POSSIBLE DIRECTION
OR ACTION BY THE BOARD.
Three members of the public voiced they felt the electric rate increase of 6% in 2008 and 4% in
2009 seems to be a good choice.
Board discussion:
• If the price of power is misjudged in 2008, a two-step program could place the PUD at
risk.
• Could defer the 2% rate reserve for electric
• With the power scenario, geothermal becomes even more important- if have to go to
market for more power, that could be very expensive
• Feel 9.94% is the way to go so as not to loose $800,000 by going with a 6% and 4%
• How much does the average 761 kw provide to a household?
• What are other public agencies charging for power?
• Would like a history of the last 10 years of electric rate increases
• What about the 5% and 5% scenario? Is that too risky for the debt ratio?
• What is available if there is a catastrophic change in power- funds to borrow internally?
• How can expenses be changed to create a different scenario?
• What happens if the debt ratio goes to 1.9?
• Look at all the facts, there is risk.
• Board took a middle of the road for the power choice risk with more geothermal
• If go with the two tier rate increase, the 2009 percent should not be debated
• Could do another rate increase to cover a catastrophe or the debt coverage requirement
• District needs to consider the 9.94% increase
• Make sure the debt ratio is good
3 Minutes: Nov. 7, 2007
PUBLIC HEARING
At 6:00 PM or as soon thereafter as possible a public hearing will be held for the purpose of
receiving written and or oral comments from members of the public regarding the draft
budget for 2008 and electric rate change.
The public hearing was opened at 8:45 PM and will be continued to November 19, 2007. There was
no public input.
ACTION ITEMS
AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH CALPERS TO PARTICIPATE IN
THE CALIFORNIA EMPLOYER'S RETIREE BENEFIT TRUST PROGRAM ("CERBT") TO
PREFUND THE DISTRICT'S POST EMPLOYMENT BENEFITS OBLIGATIONS THROUGH
CALPERS. a. This item relates to Other Post Employment Benefits
Director Thomason moved, and Director Sutton seconded, to adopt a resolution authorizing the
board President to execute the agreement with Cal PERS entitled: "California Employer's Retiree
Benefit Trust Program ("CERBT") Agreement and Election of Truckee Donner PUD to Prefund Other
Post Employment Benefits through CalPERS"; authorize staff to obtain an updated actuarial report
using the CalPERS assumptions; authorize the Treasurer to transfer to the above designated Trust
deposits totaling $198,800 plus accrued interest from the current board designated restricted fund
for prefunded payments made during 2007; and that the Treasurer or the General Manager are au-
thorized to request disbursements from the Trust to reimburse the District for retiree insurance pre-
miums paid by the District. ROLL CALL: All Directors aye, by voice vote. SO MOVED.
CONSIDERATION OF A PROPOSAL FOR DESIGN SERVICES AT THE ELECTRIC SYSTEM
SUBSTATIONS. a. This matter involves a request to award a contract with the selected
consultant for design services for the proposed improvements at the Donner Lake and Tahoe
Donner electric system substations.
Director Hemig moved, and Director Sutton seconded, to approve the selection of RW Beck to
provide professional engineering design services to the District for the rebuild of Donner Lake and
Tahoe Donner Substations; authorize the Board President to sign the consulting services agreement
for an amount not to exceed $656,195; source of funding for the Donner Lake Substation Rebuild
and the new Donner Lake Circuit No. 3 feeder is $561,057 (Facility Fees) as these are approved
Electric System Master Plan Projects; the source of funding for the Tahoe Donner Substation
Upgrade is $95,138 (Rates). ROLL CALL: All Directors aye, by voice vote. SO MOVED.
CONSIDERATION OF A RESOLUTION APPROVING THE APPLICATION FOR GRANT FUNDS.
a. This item involves a Grant Program through Sierra Nevada Conservancy Proposition 84
Director Hemig moved, and Director Aguera seconded, to adopt a resolution authorizing the
submittal of a grant application to the Sierra Nevada Conservancy for money under the proposition
84 Grant Program with a deadline of November 15, 2007.
ROLL CALL: All Directors aye, by voice vote. SO MOVED.
4 Minutes: Nov. 7, 2007
CONSIDERATION OF THE ADOPTION OF A RESOLUTION APPROVING THE EXECUTION OF
THE AMENDED AND RESTATED NORTHERN CALIFORNIA POWER AGENCY (NCPA) JOINT
POWERS AGREEMENT (JPA). a. This item relates to changes in the JPA to improve NCPA's
operations and to provide TDPUD greater durability of NCPA service levels.
Director Hemig moved, and Director Thomason seconded, to adopt the resolution approving the
execution of the Amended and Restated Northern California Power Agency (NCPA) Joint
Powers Agreement (JPA). ROLL CALL: All Directors aye, by voice vote. SO MOVED.
CONSIDERATION OF AN UPDATED AGREEMENT WITH DISTRICT COUNSEL. a. This item
involves a new agreement with Porter Simon to supersede a 1981 resolution.
Director Hemig moved, and Director Aguera seconded, to approve the November 2, 2007
agreement of Porter Simon to represent and advise the District and serve as its General Counsel.
ROLL CALL: Director Sutton, abstain (concerned about the problem if the firm has a conflict of
interest where they cannot represent the Board); All other Directors aye, by voice vote. SO MOVED.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 9:45 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Tim F. Taylor, Pre Went
Prepared by
Barbara Cahill, Deputy District Clerk
bhc
5 Minutes: Nov. 7, 2007