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Home My WebLink About2009-07-15 Min - Board REGULAR MEETING ,. July 15, 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 6:00 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: Mary Chapman, Bob Mescher, Rosana Matlock, Neil Kaufman, Sanna Schlosser, Michael Holley and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Juanita Schneider, Robb Etnyre (TD Association) and Paula Sutton CHANGES TO THE AGENDA There were no changes to the agenda. PUBLIC INPUT Juanita Schneider wanted to say her husband can hear the Directors better now with the new sound system. Robb Etnyre introduced himself as the new General Manager of the Tahoe Donner Associa- tion. He plans to attend meetings to familiarize himself the TDPUD. DIRECTOR UPDATE Director Hillstrom read SMUD pulled out of a transmission project in the Northeast corner of California- maybe this could kill the project. President Hemig distributed an article about "States awash in stimulus money to weatherize homes". Is there anything the PUD can do to access dollars to optimize our programs? ACTION ITEMS CONSIDERATION OF THE AWARD OF A CONTRACT FOR CONSULTANT SERVICES TO DESIGN A NEW WATER SCADA SYSTEM This item involves the award of a contract for consultant services to design a new water SCADA system. Director Hillstrom moved, and Director Bender seconded, that the Board award a contract to perform the SCADA Study for Phases 1 and 2 to Carollo Systems LLC in an amount not to exceed $335,000, which includes a change order allowance of 10% or $35,000; and author- ize the transfer of funds from COP to Operating fund. ROLL CALL: Director Sutton, no (feels the bid process is irregular); All other Directors aye, by voice vote. SO MOVED 1 Minutes: July 15, 2009 CONSIDERATION OF THE AWARD OF A CONSTRUCTION CONTRACT FOR THE TAHOE DONNER SUBSTATION REBUILD PROJECT This item involves the award of the Tahoe Donner Substation Rebuild-2009 Contract. A letter was received from David W. Miner, Assistant General Counsel for NAES Power Contractors. Deputy District Clerk read the correspondence. July 15, 2009 Subject: July 15, 2009 Board Meeting Agenda Item #7: Consideration of the Award of a Construction Contract for the Tahoe Donner Substation Rebuild Project Dear Members of the Board of Directors: NAES Power Contractors, Inc. (NAES) provided the low bid for the subject project and remains willing and able to perform in accordance with that bid. Accepting that bid is in the best interests of the Truckee Donner Public Utility District and its ratepayers. I have reviewed the memorandum prepared by PUD Engineer Sanna Schlosser for the Board's consideration. The memorandum does not give details of the "mathematical errors" cited. I submit that this detail is critical to your decision. The first error is negligible: a differ- ence of $3.10. The second error is better characterized as an "irregularity" rather than a "mathematical error." This error, like the first, arose during the transfer of data from NAES's internal bid preparation documents to the PUD's bid forms. A misplaced decimal point in bid item 1.1(B) resulted in the bid sheet showing a unit price ten times as high as intended by NAES. Because it was a scrivener's error, the transfer of NAES's subtotal for this line item was not affected, nor was the total bid amount. The District has reserved to itself the right to waive any "irregularities" in the bidding. The Board also has the right and the obligation to exercise its judgment in service of the best interests of the District. The errors in NAES's bid are "irregularities" that the District has the right to waive and indeed should waive. Even if the errors do not fall within the Board's understanding of the term "irregularities," the Board may still award the job to NAES. Neither NAES's error nor the Board's waiver of this error will confer on NAES any unfair advantage over PAR Electrical Contractors or the other bidders. To the contrary, awarding the project to PAR Electrical Contractors would result in a higher bidder unfairly benefiting from a typographical error, at the expense of both NAES and the District's ratepayers. It is in the best interest of the District to engage NAES, thereby saving over ten thousand dollars. NAES, as the low bidder, respectfully requests that the Board award it the Tahoe Donner Substation rebuild project. Director Bender moved, and Director Hillstrom seconded, that the Board award the Tahoe Donner Rebuild-2009 contract to PAR Electrical Contractors in the amount of $622,247.70 plus a 10% change order allowance of$62,000.00. ROLL CALL: Director Sutton, no; All other Directors aye, by voice vote. SO MOVED 2 Minutes: July 15, 2009 APPROVE A LETTER OF INTENT TO PURCHASE MATERIALS FROM NV ENERGY .�- FOR THE DONNER LAKE CIRCUIT NO. 3 FEEDER PROJECT This item concerns approving the signing of a Letter of Intent with NV Energy to Purchase Materials from NV Energy for the Donner Lake Circuit No. 3 Feeder Project. Director Aguera moved, and Director Bender seconded, that the Board authorize Board President to sign a Letter of Intent with NV Energy for the purchase of materials in advance of construction for the Donner Lake Circuit No. 3 Feeder Project; and authorize the transfer of approximately $258,000 from Electric Facilities Fees account to the Electric General Fund to pay for these materials when invoiced. ROLL CALL: Director Sutton, no (concerned the letter of intent is an unusual request); All other Directors aye, by voice vote. SO MOVED WORKSHOP SEMI-ANNUAL REVIEW OF THE DISTRICT'S FINANCIAL PERFORMANCE THROUGH JUNE, 2009 This item concerns providing the Board of Directors with a review of the financial activity and performance of the District's operations through June 2009. Bob Mescher gave a presentation: • FY09 Budget Approved November 5, 2008 • District Code Title 3, Section 3.16.030.7(D) requires semi-annual budget report comparison to actual results • Mid-year review in July 2009; Year-end review in January 2010 • District is on target with the revenues and expenditures of the FY09 budget • Electric Operating Revenue as of June 30, 2009 Projection YTD 12 Mo %of % of Actual Budget Budget End of Yr Budget Residential $ 6,416,975 $ 12,038,924 53.3% $ 12,038,924 100.0% Commercial 4,567,182 9,476,392 48.2% 9,476,392 100.0% Interdept. Sales & Rent 777,517 1,875,678 41.5% 1,875,678 100.0% Other 139,495 278,078 50.2% 278,078 100.0% Total $ 11,901,169 $ 23,669,072 50.3% $ 23,669,072 100.0% • Water Operating Revenue as of June 30, 2009 Projection YTD 12 Mo % of % of Revenue Actual Budget Budget End of Yr Budget Residential $ 412827168 $ 8,227,046 52.0% $ 8,227,046 100.0% Commercial 415,144 11142,708 36.3% 11142,708 100.0% Meter Reserve Surcharge 375,214 752,100 49.9% 752,100 100.0% Interdept. Sales& Rent 742 1,439 51.6% 1,439 100.0% Other 172,546 447,563 38.6% 447,563 100.0% Total $ 5,245,814 $ 10,570,856 Pr 49.6%1 $ 10,570,856 100.0% 3 Minutes: July 15, 2009 • Electric Operating Expenses as of June 30, 2009 Projection YTD 12 Mo % of % of Cost Center Actual Budget Budget End of Yr Budget Board of Directors $ 47,206 $ 827303 57.4% $ 82,303 100.0% General Management 200,750 476,458 42.1% 476,458 100.0% Administrative Svcs. 837,682 1,720,375 48.7% 17720,375 100.0% Public Info. & Consrv. 4977965 1,3337812 37.3% 1,333,812 100.0% Operations 1,5097897 3,417,097 44.2% 3,417,097 100.0% Power Supply(GIS) 235,505 5597849 42.1% 5597849 100.0% Purchase Power 5,202,216 11,104,634 46.8% 1151047634 100.0% Total $ 8,531,221 $ 18,6947528 PF 45.6% $ 18,694,528 100.0% • Water Operating Expenses as of June 30, 2009 Projection YTD 12 Mo % of % of Cost Center Actual Budget Budget End of Yr Budget Board of Directors $ 21,152 $ 79,303 26.7% $ 79,303 100.0% General Management 1619447 399,057 40.5% 399,057 100.0% Administrative Svcs. 5307383 11157,652 45.8% 11157,652 100.0% Public Info. & Consrv. 56,534 184,763 30.6% 1841763 100.0% Operations 27271147 4,8629871 46.7% 47862,871 100.0% Power Supply(GIS) 119,523 242,698 49.2% 242,698 100.0% Total $ 3,160,186 $ 6,926,344 IF 45.6% $ 6,9267344 100.0% • Electric & Water Capital Projects as of June 30, 2009 Projection YTD 12 Mo % of % of Cost Center Actual Budget Budget End of Yr Budget Board of Directors $ - $ - 0.0% $ - 0.0% General Management 19,566 - 0.0% 19,566 0.0% Administrative Svcs. 22,162 88,000 25.2% 88,000 100.0% Public Info. & Consrv. - 40,000 0.0% 40,000 100.0% Electric 3519349 1,964,890 17.9% 1,9459324 99.0% Water 17150,969 87599,410 13.4% 6,799,995 79.1% Power Supply(GIS) 12,989 38,781 33.5% 387781 100.0% Total $ 1,557,035 $ 10,731,081 14.5% $ 8,931,666 83.2% There was no public comment. 4 Minutes: July 15, 2009 Board discussion: • Some of the numbers in the June Treasurers Report and the semi-annual review do not match- could staff explain the differences • Could the PUD have declining revenues • The total operating revenues were more in June 2008 versus June 2009- why are they lower • Power purchases are down $500,00 for June 2009 versus June 2008- are we going to have lower cost of power for this year ROUTINE BUSINESS TREASURER'S REPORT: JUNE 2009 Approval of the report: Director Aguera moved, and Director Hillstrom seconded, that the Board approve the treasurer's report for the month ended June 30, 2009. ROLL CALL: All Directors, aye. SO MOVED. Approval of disbursements: Director Bender moved, and Director Aguera seconded, that the Board approve the June 2009 disbursements report. ROLL CALL: Director Sutton, no (feels the Board should approve the checks before they are mailed); All other Directors, aye. SO MOVED. CONSIDERATION OF MINUTES FOR JUNE 3 AND 17 AND JULY 11 2009 Director Hillstrom moved, and Director Aguera seconded, that the Board approve the mi- nutes of June 3 and 17, and July 1, 2009. ROLL CALL: All Directors, aye. SO MOVED. CLOSED SESSION CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9, SUBDI- VISION (A), EXISTING LITIGATION: CLAIM OF PACIFIC RIM CONSTRUCTION, INC. AND LAWSUITS FILED BY LAKESIDE SPECIALIZED TRANSPORTATION; ADVANCED ASPHALT; CARL CRANE TRUCKING AND TEICHERT. 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 7:55 PM. TRUCKEE ONNEIMPUBLIC UTI TY DISTRICT J. Ron ig, President Prepared by Barbara Cahill, Deputy District Clerk 5 Minutes: July 15, 2009