HomeMy WebLinkAbout2009-05-06 Min - Board REGULAR MEETING
May 6, 2009
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 perpe-
tually 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 6:02 PM in the TDPUD Board room by President Hemig.
ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig, John Hillstrom and Pat Sutton
were present.
EMPLOYEES PRESENT: Steven Hollabaugh, Jim Wilson, Mary Chapman, Nancy Waters,
Bob Mescher, Neil Kaufman, Kathy Neus, Steven Poncelet, Michael Holley and Barbara
Cahill
CONSULTANTS PRESENT: Steve Gross, Tom Unke (Virchow-Krause), Keith Grand (Marsh
Ins) and Shawn Koorn (HDR)
OTHERS PRESENT: Juanita Schneider and Dan Warren
CHANGES TO THE AGENDA
There were no changes to the agenda.
PUBLIC INPUT
There was no public input.
DIRECTOR UPDATE
President Hemig stated that Dan Colley passed away recently and the Board would like to
pay its respects. Mr. Cooley was a Director on the TDPUD Board from November 1983 to
November 1987. During his term, accomplishments were:
• Completed Martis Valley Substation
• Filed application to FERC to construct and operate hydroelectric generating facilities at
Boca/Prosser Dams- Boca Hydroelectric Project
• Annexed Hirschdale and began the water system rehabilitation project
• Completed new Headquarter Complex
President Hemig wanted to let the Board know that Nevada County LAFCo is requesting
nominations for the next four-year term for the Alternate (non-voting) District member.
Director Bender said he would be interested in running. This item will be placed on the May
20 agenda as an action item.
Director Bender attended a conference in Washington D.C., representing Northern California
Power Association as an Alternate Commissioner. He said the trip was well worth it as great
strides were made meeting with our Local senators and congress people. One topic discussed
was stimulus funding.
CONSENT CALENDAR
Director Sutton asked Agenda Items 6 and 7 be removed from the consent calendar.
President Hemig moved all three Consent Calendar items to Action Items.
ACTION
REVIEW AND AMEND DISTRICT HARASSMENT PREVENTION POLICY This item
involves an amendment to the District Harassment Prevention Policy.
Director Aguera moved, and Director Hillstrom seconded, that the Board authorize the Board
President to sign the resolution revising Section 4.2.2, Harassment, Discrimination and Retal-
iation, of Title 4, Personnel. ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF THE AWARD OF A CONTRACT TO HUMITECH FOR THE KEEP
A40"` YOUR COOL PROGRAM This item involves the 2009 Contract for Keep Your Cool
Program.
Director Hillstrom moved, and Director Bender seconded, that the Board award a contract to
Humitech for the Keep Your Cool Program for an amount not to exceed $30,000.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF THE AWARD OF A CONTRACT TO PURCHASE MOTOR
CONTROL CENTER This item involves the purchase of a Motor Control Center for the
Fibreboard Well.
Director Bender moved, and Director Aguera seconded, that the Board award the contract for
electrical equipment for the Fibreboard Well in the amount of $22,790.00 (plus tax) to Rexel
Electric Supply; and authorize the transfer of $22,790 (plus tax) from Water Facilities fees to
the Water Department Operations fund.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
APPROVE AGREEMENT WITH UAMPS REGARDING REC'S This item involves the
purchase of Renewable Energy Credits from Utah Associated Municipal Power
Systems.
Director Hillstrom moved, and Director Bender seconded, that the Board approve the UAMPS
Renewable Energy Credit Sales Agreement for the purchase of 36,000 REC's for the calen-
dar year 2009, not to exceed $189,000.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
.« .,
APPROVE AN AGREEMENT FOR ASSIGNMENT AND ASSUMPTION OF 200 KW
TRANSFER OF PLEASANT VALLEY WIND GENERATION This item involves the 200
kw transfer of Pleasant Valley Wind generation between Hildale City Utah and Truckee
Donner PUD.
Director Bender moved, and Director Hillstrom seconded, that the Board authorize the Board
President to sign the Assignment and Assumption Agreement between Hildale City, Truckee
Donner PUD and UAMPS for approximately 200kw of wind generation at Pleasant Valley.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF THE AWARD OF A CONTRACT FOR PROPERTY AND LIABILITY
INSURANCE This item concerns the annual renewal of the District's property and
liability insurance.
Director Sutton moved, and Director Aguera seconded, that the Board approve the insurance
renewal as presented; reject the TRIA (terrorism) coverage; and approve Marsh's Client
Services Agreement for the 2009-2010 policy year subject to District counsel's review.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
REVIEW AND ACCEPT THE DRAFT AUDIT REPORTS FOR 2008 This item relates to a
presentation by the District's auditors regarding their findings in conducting the audit
for the District's 2008 financial statements.
Director Bender moved, and Director Hillstrom seconded, that the Board accept the draft
Audited Financial Reports for 2007 and 2008.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
ADOPT A RESOLUTION FOR REVISIONS TO TITLE 8, DISTRICT PROPERTY This item
involves the adoption of a resolution for revisions to District Code, Title 8, District
Property.
Director Hillstrom moved, and Director Aguera seconded, that the Board approve the
resolution "Adopting an Amendment to the District Code, title 8, District Property".
ROLL CALL: All Directors aye, by voice vote. SO MOVED
WORKSHOPS
DISCUSSION OF WATER RATE STRUCTURE ALTERNATIVES This workshop begins
the discussions about water rate structure alternatives.
Shawn Koorn of HDR, gave a presentation on a review of conceptual rate structures:
• Rate Review Process
o Determine goals and objectives
o Compare alternatives to the goals and objectives
o Narrow down alternatives (options) to those that best align with goals & objectives
o "Test drive" the selected options
3 Minutes: May 6, 2009
o Make a final selection based upon the above process
• Typical objectives when setting rates
o Revenue stability and sufficiency
o Continuity in rate philosophy
o Fairness and equity
o Cost-based
o Ability to pay
o Conservation—efficient usage
o Simplicity
o Legal and regulatory constraints
o Legally defendable
o Financial risk
• Industry trends
o State mandate for volume based billing
o AB 2882 — allocation based conservation pricing
o Movement to conservation based rates: Ca Urban Water Conservation Council
(CUWCC) and provide one definition of conservation rates
• Purpose of reviewing the District's rate design goals and objectives
o Provide a perspective of how current water rates were developed
o Understand what issues other water utilities consider
o Recognize the problem of competing goals and objectives
o What should the District carry forward in any new rate structures?
• Development of the conceptual water rate
o Objective is to view rate structures from a "philosophy" perspective — not numbers
o Assume service charge, usage charge, and pumping zone charge will be included
in any conceptual rate structure
o Focus on the relationship between the service charge and usage charge portion of
the structure
o Identify concepts to move forward that meet the District's goals and objectives
o Ultimately choose 2-3 concepts to road test
• District's present rate structure
o Residential fixed monthly rate $48.57 (plus zone charge)
o Small Residential fixed monthly rate $34.57 (plus zone charge)
o Commercial- 3/4" meter size $42.34 plus usage charge beginning with 6,000 gal.
• Service charges vs. usage charges
o Provides revenue stability
o Utilities generally incur more fixed than variable expenses
o Can include some level of consumption in service charge
o Financial risk
• Option 1- Uniform Rate Structure
o Block 1 All Use Pricing of block $2.00/1,000 gal.
o Provides single cost of water
o Promotes conservation compared to current rate structure
o Will work for all customer classes of service
o Rate may vary by customer class
• Option 2- Inclining Rate Structure
o Block 1 Average indoor use Pricing of block $2.00/1,000 gal.
4 Minutes: May 6, 2009
Block 2 Use over block 1 Pricing of block $4.00/1,000 gal.
o Considered a conservation-based rate
o Block size can be based on average winter use
o For commercial; may penalize large users who may or may not be inefficient users
• Option 3- inclining Rate Structure
o Variation of Option 2
o Block 1 Average indoor (Winter) use Pricing of block $2.00/1,000 gal.
Block 2 Average outdoor(Summer) use Pricing of block $4.00/1,000 gal.
Block 3 All usage over block 2 Pricing of block $6.00/1,000 gal.
o Block sizes based upon District averages
o Geared towards single-family residential; probably not appropriate for commercial
0 3rd block is intended to "penalize" inefficient use
• Option 4- Seasonal Rate Structure with uniform rate
o Winter Period Block 1 All consumption Pricing of block $1.50/1,000 gal.
o Summer Period Block 2 All consumption Pricing of block $2.25/1,000 gal.
o Variation of Option 1
o Need to define winter and summer periods
o Communicates the value of water (capacity) varies by time period
• Option 5- Season Rate Structure with fixed thresholds and a uniform rate
o Winter Period Block 1 All consumption Pricing of block $1.50/1,000 gal.
o Summer Period Block 1 Ave Winter Use Pricing of block $1.50/1,000 gal.
o Summer Period Block 2 Ave Summer Use Pricing of block $2.00/1,000 gal.
o Summer Period Block 3 All Usage over block 2 Pricing of block $4.00/1,000 gal.
o Combination of the previous structures
o Focuses on the summer period
o Based upon District average
o Outdoor use is more discretionary and greater price response
o Probably not appropriate for commercial
• Other usage rate design parameters
o Individual winter water use
o Number of occupants
o Lot size
o Irrigable area
o Geographic location
o Customer type
• Impacts to customer classes of service
o Difficult to design a single rate structure that "fairly" charges all customers
o Criteria for establishing customer classes of service — facility requirements and
usage patterns
o Current Classes of Service: Residential, Small Residential and Commercial
• Rate structure review final thoughts
o Transition to a metered rate
o Meeting the District's ultimate rate structure goals
o Customer impacts
,. o Usage impacts
o Rate structures can vary by class of service
o How to treat condos/townhomes and/or mixed use
5 Minutes: May 6, 2009
o Different types of commercial uses
o Metered irrigation
o More use isn't necessarily inefficient use
o Inefficient vs. wasteful
• Next steps
o Rate study kick-off meeting with staff May 7
o Develop rate study analysis: revenue requirement, cost of service, rate design
o Input from Board will shape the rate design alternatives
o Road test some alternative rate structures at the June 3 Board meeting
Juanita Schneider asked if there are pilot test meters on the west end of Donner Lake.
Donner Lake Homeowners Association will be holding its annual meeting this month and this
subject may come up.
Board discussion:
• How does the Board give direction for the June 3 test drive of rate options
• What time is the staff meeting with HDR on May 7
• Has HDR dealt with many districts- have some districts had water problems so there is
a reason to set rates
• Our water problems are unique to us- water goes to Nevada
• When a district goes from flat to block pricing, is it reasonable to assume that 1/3 of
customers will have higher bills, 1/3 will have parity and 1/3 will be less
• Get rid of declining block rate- get rid of free water- it is like commercial accounts get
6,000 gallons free water
• Goal setting- be cost based, simple, not big enough to be complicated, not give rate
payers a heart attack
• Higher elevation pay more electric to pump —apply base charge and use
• Is there sufficient water
• So HDR will come back with equations for water rates
• Will there be three meetings for input: one in June and 2 in July
• Need to test drive some rates
• Truckee Tahoe Sanitary District- how do they figure out the use of 210 gallon/day
times household members to equal 6,000 gallons per month
• Like the seasonality- growing season is only about 4 months
• What about low income rates
• Pipe replacement — get away from borrowing- so pay as you go- HDR needs to be
aware of the District policy in order to develop rates
• There needs to be an ability to pay- keep rates simple
• Be able to pay for future needs- but keep rates stable
• If use less water and conserve, may have to charge more to cover our costs
• Come up with 90/10- see what use and do not pay huge amount
• Big surcharge and small rate for volume component and small seasonality component
• Will HDR give us a multiyear plan
Should we segment customer types
• Maybe all that is needed for commercial charge is meter size
• Is there a reason to consider a higher fixed rate for second homeowners
6 Minutes: May 6, 2009
.. • See the scenarios in the test drive on June 3- simple stuff: no tiers, 2 tiers, simple with
tier change
How can we make outreach work- do an extensive outreach
• Put a news release in the Sierra Sun
TDPUD CUSTOMER ASSISTANCE PROGRAMS This item involves current and
proposed programs for TDPUD customer assistance, including the Low Income -
Energy Saving Program (LI-ESP).
Mary Chapman and Steven Poncelet gave a presentation:
• Background / History
o The District has been exploring ways to help our customers through the economic
crisis
— This is particularly true of our low-income customers
o Staff is working on existing and new customer assistance programs
— Equal Payment Plan (existing)
— Bill Amortization Program has been extended from 12-months to 24-months
— Pay-As-You-Go Metering (pending) is a web based or card swipe system
available to all electric customers; advantages: eliminates customer deposits,
helps customers reduce their energy usage, eliminates late fees & associated
charges
— Low-Income Energy Savings Program (LI-ESP)
• Low-Income Energy Savings Program (LI-ESP).
o Support's the District's low-income customers
o Available to full-time residents who qualify
o Provides a one-time voucher equal to largest bill in last 12-months (up to $200)
o Customer must participate in a free residential energy survey and install free
energy efficiency measures
o Includes information on other TDPUD programs along with additional community
resources
o First-year goal of 200 participants in LI-ESP
o Low-income customer outreach and qualification to be contracted to a local non-
profit (Family Resource Center)
— Leverages existing relationships with low-income community
— Provides non-threatening face-to-face contact
— Minimizes administrative burden on District staff
— District will promote program through existing activities
o Low-income qualification the same as other programs
— Southwest Gas, NV Energy, PG&E
— Based on California Public Utilities Commission (CPUC) guidelines
— Loss of 25% of household income will also qualify
o LI-ESP requires an energy survey of customers residence
— `Visual' survey of residence paid for by the District
— Energy survey is designed to target `low hanging fruit' with focus on the most
cost-effective measures
— Energy survey will identify and recommend energy efficiency upgrades and
additional areas for investigation
7 Minutes: May 6, 2009
— Surveyor will provide free energy saving measures at the end of survey
• Fiscal Impact
o LI-ESP vouchers will be funded through the Conservation Dept. low-income funds
o LI-ESP free energy survey and measures will be funded through existing Conser-
vation Dept. programs
There was no public input.
Board discussion:
• Take out "low income" and just name program Energy Savings Program (ESP)- there
is no reason to brand people
• Program sounds great
• People will know if they qualify by the three requirements
• Program could be used across the board and not just for low income
• The $200 voucher seems like a reward for a large monthly bill
• People who have large bills may be using too much energy and could use a residential
energy survey
ROUTINE BUSINESS
TREASURER'S REPORT: FINAL DECEMBER 2008
Approval of the report: Director Sutton moved, and Director Hillstrom seconded, that the
Board approve the final treasurer's report for the month ended December 31, 2008.
ROLL CALL: Director Sutton, no; All other Directors, aye. SO MOVED
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 9:21 PM.
TRUCKEE DON ER PUBLIC UT LITY DISTRICT
J. emig, President
0�u (61AL
Prepared by 1
Barbara Cahi Deputy District Clerk
g Minutes: May 6, 2009