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Home My WebLink About2013-07-17 Min - Board REGULAR MEETING July 17, 2013 In accordance with District Code Section 2.08.010, the TDPUD minutes are action only minutes. All Board meetings are recorded on a digital format which is preserved in perpetuity 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 Bender. ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig, and Tony Laliotis were present. Director Bob Ellis arrived at 6:15 PM. PLEDGE OF ALLEGIANCE Director Aguera led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT Sanna Schlosser, Jim Wilson, Steven Poncelet, Brain Wright, Joe Horvath, Kim Harris, Kathy Neus, Bob Mescher, Michael Holley and Barbara Cahill CONSULTANTS PRESENT Steve Gross OTHERS PRESENT Juanita Schneider and Jody Sweet CHANGES TO THE AGENDA General Manager Holley stated there was a revision to Agenda Item 13, Consideration of Awarding a Contract for Inspection of Fiber Optic Installation Services. PUBLIC INPUT Jody Sweet voiced his concern about a dead tree near the Vets Center at Keiser and High Streets. He has spoken with Mr. Randall of the Truckee Rec & Park and to Truckee Donner PUD staff about removing the tree because it is an eye sore and poses a safety hazard, both for fire and is very close to primary electric lines. President Bender said a PUD crew will take a look. Routine clearing is performed near power lines. DIRECTOR UPDATE Director Hemig asked if the August meeting will be at the first of the month or in the middle of the month. UAMPS conference is from August 18th through 20th. It would be good for the PUD Board of Directors to attend the UAMPS "meet and greet" reception on Sunday, August 18th and to go to the conference President Bender let the Board and public know there is a Nevada County LAFCo meeting tomorrow morning July 18tn 1 Minutes: July 17, 2013 CONSENT CALENDAR President Bender asked that two agenda items be removed from the Consent Calendar: • 8, Consideration of Awarding a Contract for Replacement of the HVAC Control System, due to a potential financial conflict • 13, Consideration of Awarding a Contract for Inspection of Fiber Optic Installation Services, due to a revision CONSIDERATION OF AWARDING A CONTRACT FOR PURCHASE AND REPLACE- MENT OF THE GATES AT THE DISTRICT'S OFFICE COMPLEX This item involves awarding a contract for the purchase and replacement of gates at the District Office Complex. CONSIDERATION OF EXTENDING THE CONTRACT FOR EM&V (EVALUATION, MEASUREMENT, & VERIFICATION) FOR THE 2013 CONSERVATION PROGRAMS This item involves extending the Evaluation, Measurement, & Verification (EM&V) contract. CONSIDERATION OF A SAFETY INCENTIVE TO DISTRICT EMPLOYEES This item involves authorizing a safety incentive to District staff. CONSIDERATION OF THE PURCHASE OF A HYDROPNEUMATIC PACKAGED PUMPS SYSTEM FOR THE DONNER VIEW HYDRO STATION REBUILD This item involves the purchase of Pumping Equipment for the Donner View Hydro Station Rebuild. CONSIDERATION OF PURCHASING A REPLACEMENT BUCKET TRUCK This item concerns Purchase of an International 4 X 4 Bucket Truck for the Electric Department. Director Aguera moved, and Director Laliotis seconded, that the Board approve the consent calendar. ROLL CALL: Director Ellis, absent; all other Directors aye, by voice vote. SO MOVED ACTION ITEMS CONSIDERATION OF AWARDING A CONTRACT FOR REPLACEMENT OF THE HVAC CONTROL SYSTEM This item involves awarding a contract for replacing the three way valves and controls on the fan coils to complete the boiler replacement project. President Bender recused himself due to a potential financial conflict. Director Laliotis moved, and Director Hemig seconded, that the Board award the contract for Building Controls Project to QCS, Inc. of Sparks, Nevada in the amount of $89,950 plus a 10% change order authorization for a total amount not to exceed $98,945. ROLL CALL: Director Bender recused; Director Ellis, abstain (arrived late); all other Directors aye, by voice vote. SO MOVED 2 Minutes: July 17, 2013 CONSIDERATION OF AWARDING A CONTRACT FOR INSPECTION OF FIBER OPTIC INSTALLATION SERVICES This item involves the award of Quality Assurance Inspection Services associated with the SCADA Reliability Improvement Project - Phase 2 and an option to extend the contract to Phase 3. Director Hemig moved, and Director Ellis seconded, that the Board • Award the contract for Quality Assurance Fiber Optic Inspection Services to ACTS for Task A in the amount of $15,800, plus a 10% change order allowance for an amount not to exceed $17,380 • Authorize the General Manager to approve Task B to ACTS in the incremental amount of $19,592, plus a 10% change order allowance for a total Contract amount not to exceed $21,551 • Authorize the transfer of up to $38,931 from Electric and Water Capital Reserve Funds to the Electric General Fund ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF APPROVING AN AGREEMENT WITH AT&T CONCERNING JOINT POLE OWNERSHIP This item involves approving an Agreement with AT&T concerning Joint Pole ownership Director Ellis moved, and Director Aguera seconded, that the Board authorize the Board President to sign the Pole Purchase Agreement between AT&T and Truckee Donner Public Utility District in substantially the form presented and approved by District Counsel. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF ADOPTING A RESOLUTION DEFINING THE ALLOCATION OF FUNDS FROM AB32, CALIFORNIA CAP-AND-TRADE This item involves Adopting a Resolution regarding the allocation of funds from AB32, California Cap-and-Trade. Director Hemig moved, and Director Ellis seconded, that the Board: • Approve Resolution 2013-16 for the District Cap-and-Trade Utilization Policy of the use of revenues from the sale of allocated allowances in California's GHG Cap-and- Trade auctions • Approve for FY14 and FY15 the revenue from the sale of Cap-and-Trade allowances be used for purchase in renewable resources for the electric portfolio namely the Horse Butte Wind project ROLL CALL: All Directors aye, by voice vote. SO MOVED 3 Minutes: July 17, 2013 WORKSHOP MID-YEAR BUDGET REVIEW OF THE DISTRICT'S FINANCIAL PERFORMANCE This item concerns providing the Board of Directors with a review of the financial activity and performance of the District's operations through June 2013. Robert Mescher gave a presentation: • FY12 - FY13 Budget approved November 16, 2011 • District Code requires semi-annual budget report comparison to actual results o Mid-year review in July 18, 2012 o Year-end / mid-cycle review in February 20, 2013 o Mid-year review in July 17, 2013 (tonight) o Year-end / end-of-cycle review in February 2014 • FY13 Electric and Water Budget Electric Water Total Operating Revenue $23,220,189 $101856,132 $34,076,321 Expenses (19,990,884) (7,707,640) (27,6985624) Operating Income $ 35229,305 $ 3,148,492 $ 6,377,797 r` Transfers In from Other Funds 151711995 313621136 4,5241130 1 Transfers Out to Other Funds (1,506,837) (4,775,934) (6,282,771) Capital Projects (2,894,463) (1,724,693) (4,619,166) Total $ - $ - $ - • Electric Operating Revenue as of June 30, 2013 Projection 12 Mo YTD % of % of Budget Actual Budget End of Yr Budget Residential $ 12,308,431 $ 6,627,700 64% $ 11,820,000 96% Commercial 8,973,816 4,510,439 60% 8,880,000 99% Interdept. Sales &Rent 1,663,432 692,199 44% 1,640,000 106% Standby 26,480 - 0% 25,400 100% AB 32 Cap& Trade - 414,300 0% 643,300 Other 349,031 102,093 29% 204,300 69% Total $ 23,220,189 $ 12,346,731 53% $ 23,213,000 100% 4 Minutes: July 17, 2013 • Electric Operating Expenses as of June 30,2013 Projection 12 Mo YTD %of %of Cost Center Budget Actual Budget End of Yr Budget Board of Directors $ 98,276 $ 39,861 41% $ 96,000 98% General Management 673,766 283,434 49% 646,000 96% Administrative Svcs. 1,484,603 774,892 62% 1,486,000 100% Public Info.&Consrv. 1,450,363 536,989 37% 1,378,000 96% Operations 3,312,793 1,623,386 46% 3,180,000 96% Power Supply(GIS) 678,465 435,316 64% 712,000 106% Building Maintenance 628,922 174,269 33% 502,000 95% Purchase Power 11,863,817 6,801,803 49% 11,860,000 100% Total $ 19,990,884 $ 9,569,937 48% $ 19,758,000 99% • Electric Capital Expenditures as of June 30,2013 Projection 12 Mo YTD %of %of Source of Funds Budget Actual Budget End of Yr Budget Rates $ 2,760,643 $ 891,459 32% $ 2,113,963 77% Facilities Fees 100,000 19,889 20% 662,944 663% Vehicle Reserve 43,820 767 2% 43,820 100% Total $ 2,894,463 $ 912,105 32% $ 2,820,717 97% • Water Operating Revenue as of June 30,2013 Projection 12 Mo YTD %of %of Budget Actual Budget End of Yr Budget Residential $ 8,649,479 $ 4,137,992 48% $ 8,464,000 99% Commercial 1,196,666 537,347 45% 1,315,000 110% Meter Reserve Surcharge 762,100 374,391 50% 752,000 100% Standby&Fire Protection 161,040 - 0% 161,040 100% Other 197,848 126,960 64% 214,000 108% Total $ 10,856,132 $ 5,176,690 48% $ 10,906,040 100% 5 Minutes:July 17,2013 • Water Operating Expenses as of June 30, 2013 Projection 12 Mo YTD % of % of Cost Center Budget Actual Budget End of Yr Budget Board of Directors $ 98,275 $ 39,049 40% $ 96,000 98% General Management 452,934 217,089 48% 430,000 95% Administrative Svcs. 1,331,679 616,901 46% 1,332,000 100% Public Info.&Consrv. 360,166 131,606 37% 342,000 96% Operations 6,143,021 2,364,209 46% 5,143,000 100% Power Supply(GIS) 321,666 182,690 57% 338,000 105% Total $ 7,707,640 $ 3,660,442 46% $ 7,681,000 100% • Water Capital Expenditures as of June 30, 2013 Projection 12 Mo YTD % of % of Source of Funds Budget Actual Budget End of Yr Budget Rates $ 1,443,571 $ 621,250 43% $ 1,444,000 100% Vehicle Reserve 197,032 90,147 46% 230,147 117% Future Water Meters 678,090 163,738 27% 240,818 42% F Total $ 2,218,693 $ 865,135 39% $ 1,914,966 86% There was no public input. Board discussion: • Slightly under budget is good • Is there a reason why the electric residential revenue is short? • What is standby revenue? • Good news • Good job ROUTINE BUSINESS TREASURER'S REPORT: June 30, 2013 Approval of the fund balances as of May 31, 2013: Director Laliotis moved, and Director Hemig seconded, that the Board approve the treasurer's report for the month ended May 31, 2013. ROLL CALL: All Directors, aye. SO MOVED. Approval of disbursements for June 2013 Director Aguera moved, and Director Ellis seconded, that the Board approve the June 2013 disbursements report. ROLL CALL: All Directors, aye. SO MOVED. APPROVAL OF MINUTES FOR JUNE 5, 2013 Director Hemig moved, and Director Laliotis seconded, that the Board approve the minutes of June 5, 2013 subject to a change on Director update. ROLL CALL: All Directors, aye. SO MOVED. 6 Minutes: July 17, 2013 CLOSED SESSION CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(D)(1), CONFERENCE WITH LEGAL COUNSEL ON PENDING LITIGATION: SIERRA PACIFIC POWER CO/DBA NV ENERGY SCHEDULE 4 ENERGY IMBALANCE, CASE NO. ER13-247-000 CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(D)(4), CONFERENCE WITH LEGAL COUNSEL ON DECIDING WHETHER TO INITIATE LITIGATION: MERGER OF SPPCO AND NEVADA POWER CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(D)(1), EXISTING LITIGATION,ONE CASE, MCCRARY V.TDPUD CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(D)(1), EXISTING LITIGATION,ONE CASE,YOLKEN V.TDPUD PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION 54957: GENERAL MANAGER PERFORMANCE PLAN REVIEW RETURN TO OPEN SESSION Report from Closed Session There was no reportable action. ADJOURNMENT There being no further business before the Board,the meeting was adjourned at 8:36 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jeff Be de , rest ant Prepared by Barbara Cahilf Deputy District Clerk 7 Minutes:July 17,2013 i Resolution of the Truckee Donner Public Utility District Adopting the Cap-and-Trade Revenue Utilization Policy For the Use of Revenues From the Sale of Allocated Allowances In California's Greenhouse Gas Cap-and-Trade Auctions RECITALS A. The Global Warming Solutions Act, also known as Assembly Bill 32 (AB 32), requires that California's Greenhouse Gas (GHG) emissions in 2020 are at the same levels as that of year 1990, and authorized the California Air Resources Board (CARB)to develop regulations to reach this goal. B. CARB's final regulations became effective January 1, 2012 and are contained in Title 17 of California Code of Regulations, Sections 95800 — 96023. C. The GHG emission Cap-and-Trade program is one of several tools designed by CARB to achieve the state's GHG reduction goal and its implementation is due to start in November 2012. D. As an electric distribution company, the Truckee Donner Public Utility District(District) has been allocated GHG emission allowances (allowances) free of charge by CARB. E. These allocated allowances are estimated to have a market value of$1.2 to $1.6 million in calendar year 2013 and are expected to increase in value through 2020. F. Under the terms of CARB's cap-and-trade regulation, the District is required to sell these excess allocated allowances in the auctions conducted by CARB and utilize the auction sale proceeds "exclusively for the benefit of retail electric ratepayers" and "consistent with the goals of AB 32". (Title 17 CCR Section 95892(d)(3)). G. The District supports the state's AB 32 goals, and intends to implement the District's Cap-and-Trade Revenue Utilization Policy in furtherance of those goals. The Truckee Donner Public Utility District ("District") does RESOLVE as follows: The District's Cap-and-Trade Revenue Utilization Policy is as follows: 1. District shall abide by CARB's regulations by using the auction proceeds and allowance value obtained from the District's allocated allowances for the exclusive benefit of the District's retail ratepayers, consistent with the goals of the Assembly Bill 32 (AB32), and not for the benefit of entities or persons other than such ratepayers. 1 Resolution 2013-16 2. District's auction proceeds will be set up in a separate account to track auction revenues and the following uses are currently permitted: a. Purchases or investments in renewable resources for the electric portfolio; b. Investment in energy efficiency programs for the electric portfolio and retail customers; c. Rebates to retail electric ratepayers; d. Investments or expenditures associated with carbon reducing measures at retail customer facilities. 3. Allocated allowances may also be used to meet the District's electric utility's compliance obligations. 4. District will receive annual reports on the allowance revenues and expenditures associated with complying with CARB regulations. 5. Additional Board approval will be required for any rebates to electric ratepayers proposed under this resolution. PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District in a meeting duly called and held within said District on the seventeenth day of July, 2013. AYES: Directors Aguera, Bender, Ellis, Hemig and Laliotis NOES: None ABSTAIN: None ABSENT: None ZE-E NNER PUBLIC UTILITY DISTRICT der, President ATTEST: Michael D. Holley, P.E. Cler of the Board 2 Resolution 2013-16