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HomeMy WebLinkAbout2008-11-19 Min - Board REGULAR MEETING November 19, 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 in the TDPUD Board room by President Taylor at 6:03 PM. ROLL CALL: Directors Ron Hemig, Patricia Sutton, Tim Taylor and Bill Thomason were present. Director Joe Aguera was absent. EMPLOYEES PRESENT: Rosanna Matlock, Neil Kaufman, Mary Chapman, Stephen Hollabaugh, Steven Poncelet, Bob Mescher, Mark Thomas, Jessica Wilson, Kathy Neus, Michael Holley and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Juanita Schneider, Dan Warren, John Hillstrom, Paula Sutton PUBLIC INPUT None DIRECTOR UPDATE Director Hemig said he read in the Sacramento Bee that there is new legislation to reduce the Fish and Game permit time by one-half. How would this affect the project with Plumas REC and the Biomass- would this be relevant to the TDPUD? There was also an article about new goals as to the 2020 RPS — like 33%. CONSENT CALENDAR AMENDING AND RESTATING AGREEMENT FOR JOINT AND COOPERATIVE ACTION AND BYLAWS WITH DAMPS This item involves the most recently approved revision by UAMPS's Board of Directors on October 15, 2008. APPROVAL OF EMPLOYEE COLA INCREASES, 125 PLAN AND SALARY RANGE ADJUSTMENTS This involves three items included in the FY09 budget that require Board approval prior to implementation. 1 Minutes: Nov. 19, 2008 CALPERS OTHER POST EMPLOYMENT BENEFIT DEPOSITS - DELEGATION OF AUTHORITY TO REQUEST DISBURSEMENTS This item authorizes the General Manager and the Treasurer to request reimbursements to the District from the Other Post Employment Benefit pre-funding plan for insurance premium payments paid for retirees during the fiscal year. Director Thomason moved, and Director Hemig seconded, that the Board approve the consent calendar. ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED ACTION ITEMS APPROVAL OF CEQA INITIAL STUDY FOR 2009 PIPELINE REPLACEMENT PROJECT This item involves a CEQA Review of the District Pipeline Replacement - 2009 Project. Director Hemig moved, and Director Thomason seconded, that the Board: 1) Authorize staff to file the proposed negative declaration and environmental initial study with the Office of the Nevada County Clerk. 2) Authorize staff to file the proposed negative declaration and environmental study with responsible and interested agencies and with the State Clearinghouse. 3) Authorizing staff to publish a notice of public review period and public hearing on the proposed negative declaration. 4) Authorizing staff to set a public hearing date of December 17, 2008. ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED FINAL COMPLETION AND A CLOSEOUT CHANGE ORDER FOR THE DISTRICT PIPELINE REPLACEMENT — 2008 — CONTRACT B PROJECT This item involves the closeout of 2008 Water Pipeline Replacement Project B and submission of the Notice of Completions. Director Hemig moved, and Director Thomason seconded, that the Board: 1) Authorize Contract Change Order No. 1, in the amount of a $189,100 payment from the District to Pacific Rim Construction, Inc. 2) Authorize the transfer of $169,185.04 from COP funds to the Water Department General Fund, $17,393.11 from Facility Fees to the Water Department General Fund and $2,521.85 from the Electric Department General Fund to the Water Department General Fund cover the cost of the Change Order. 3) Adopt the attached draft resolution accepting the District Pipeline Replacement - 2008 - Contract B 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 WORKSHOP DISCUSSION ABOUT DELIVERED WATER QUALITY AND WATER SYSTEM DISINFEC- TION PRACTICES This is a discussion of the current status of delivering water quality including residual disinfectant levels within the District. 2 Minutes: Nov. 19, 2008 Neil Kaufman gave a presentation: • History o The District has been using liquid chlorine to disinfect the water supply since the 1980s o The purpose of disinfection is to ensure public health by killing and/or inactivating any bacteria, viruses or other micro-organisms o A minimum chlorine level is maintained throughout the distribution system to prevent re-growth • New Information o State regulations require a detectable chlorine residual (0.1 mg/L) at the farthest ends of the distribution system o In order to maintain that level at the outer reaches of the system, water is dosed to a level of about 0.5 mg/L at the well o California Department of Public Health has set maximum chlorine level at 4.0 mg/L o As of November, the District has taken over 460 bacteriological and chlorine resid- ual samples: there have not been any positive bacteriological samples and the current disinfection procedures are working effectively Board discussion: • Think there is more than 12% chlorine in the water at my home • Some restaurants seem to have more chlorine in their water • No dispute with the report- there are still areas of Truckee with problems • Restaurants use bleach in the cleaning of dishes • What are the testing procedures and what is the turn around • Why does the water vary— is it the location and distance • What is the average chlorine result over all 40 test sites? • Do some parts get overdosed? • Who does the testing; have we done an RFP recently? DISCUSSION OF LARGE WATER METER REPLACEMENT PROGRAM Discussion of the District plan to replace large water meters. Neil Kaufman gave a prensentation: • Background/History o The Water Department currently has about 670 commercial accounts o Meters range in size from 3/4-inch to 8-inch • New Information o There are three basic types of revenue meters in the size ranges utilized by the District. o For situations where higher flow rates are required, the usage patterns of the customer will normally dictate the type of meter that is used. ■ Positive displacement meters are available in sizes from 3/4-inch to 2-inch and are accurate over a wide range of flows. ■ Turbine meters are available in sizes from 2-inch to 20-inch and are very accurate for higher flow rates but will under-register at low flows. ■ A compound meter is a small positive displacement meter (measures low flows) and a turbine meter (measure large flows) combined into a single unit. 3 Minutes: Nov. 19, 2008 , . o Turbine meters are less expensive than compound meters, so the cost of the meter must be weighed against the revenue lost by under-registration of low flows o The Water Department reviewed the meter inventory of its large accounts for both type and age of meter ■ Some large meters are 27 years old ■ 20 accounts have been identified where the installation of a replacement meter may be warranted ■ New meters will increase registration and therefore increase the monthly bill; the District's Conversation Department will work with these customers to mitigate increased costs. • Fiscal Impact f the meter o The Water Department is currently conducting a field survey o installations in question to assess whether meter box upgrades are required. o Once this review is complete, a cost for the overall project can be developed o Planned sourced of funds is Water Rates Public input: • Do the commercial meters tie into the new residential meter system? Board discussion: • What will be the cost? And how can it be mitigated? Try to help customers with cost saving measures. • Residential customers currently have a flat rate- with the new metering system; will people's bill be less? • Is the assumption that no one on meters will have a metered rate until all customers are on a metered rate? • When will all residential customers be on the new water meters? • What is a rough guess on the cost to replace some commercial meters? • Costs for new meters will be borne by the District and not by the commercial payers. • How can this be sold to the residential customers who are going to be paying for meter equipment, but the District appears to be paying for the commercial meters. This needs to be clarified. STATUS OF THE RYE PATCH GEOTHERMAL GENERATION PLANT AND THE CORRESPONDING PURCHASE POWER AGREEMENT This item concerns the status of the Rye Patch geothermal power purchase agreement with Presco Energy. Steve Hollabaugh gave a presentation: • History/Background o Signed a Power Purchase Agreement (PPA) in July 2007 with Presco Energy o Presco Energy owns Rye Patch geothermal plant and planned to re-power the plant o PPA was between TDPUD, Plumas Sierra REC and Presco Energy . o PPA included price for power after plant became operational o Received progress reports in Nov. 2007 and April 2008. o Work toward re-powering was proceeding slowly o Drill-rig availability was becoming issue 4 Minutes: Nov. 19, 2008 • New Information o Received letter from Presco Energy on Oct. 20, 2008 o Stated that efforts to finance the plant construction and start-up are at an impasse o Earliest activity could continue would be August 2009 o Presco Energy requested mutual termination of PPA o District still wants the energy when plant is re-powered o Staff has reviewed the contract with counsel o Work with Plumas Sierra REC to keep PPA contract and not terminate • Fiscal Impact o PPA requires District to pay only when energy is delivered o Currently no energy has been delivered o District is meeting load with other sources Board Discussion • There are many interesting questions • Any land with geothermal potential is being bought up by the industry. Is this an issue with Presco? • Maybe small utilities should not work with small plants. Maybe it is better the PUD works with UAMPS on geothermal projects. • Why does Presco want to terminate- is the Purchase Power Agreement a liability? • If the capital cost keeps rising and the PUD has a firm rate, we may be dragging them down. • Could the Board have a copy of the Presco letter. • Is the plant currently owned by Presco or jointly? • The well on the property was drilled about 30 years ago- this does not seem a ques- tion of property right. • Should press a discussion on what Presco plans to do. • Presco could sell to someone else and the price could be higher. • Could a consultant tell us if there is a thermal field- we need a report on stability. • Since we may not receive this geothermal power, has it deterred the District from looking for other renewables. • Counsel was asked for his opinion why Presco would want the TDPUD to cancel the contract. • The District has not been deterred from looking into other renewables. • If the District cancels the contract, Presco could come back in 6 months with a much higher price. • The PUD target percent for renewables is not heavily impacted by this geothermal not being available. This is a small portion of the RPS goal. The Board would like an update if the Presco geothermal project truly goes away for 2009 and the percent affect on the RPS goal. 5 Minutes: Nov. 19, 2008 ROUTINE BUSINESS TREASURER'S REPORT Approval of the report: Director Hemig moved, and Director Thomason seconded, that the Board approve the month ended October 31, 2008. ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED Approval of disbursements: Director Thomason moved, and Director Hemig seconded, that the Board approve the October 2008 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. CONSIDERATION OF MINUTES FOR APPROVAL OF MINUTES FROM OCTOBER 15 AND NOV 59 2008. Director Thomason moved, and Director Hemig seconded, that the Board approve the min- utes of October 15 and November 5, 2008. ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED. PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION 54957: GENERAL MANAGER RETURN TO OPEN SESSION Report on closed session No reportable action. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 7:45. TRUCKEE DONNE PUBLIC UTI I Y DISTRICT J. Ron a ig, President a Prepared by /f a ) Barbara Cahig, Deputy District Clerk 6 Minutes: Nov. 19, 2008