HomeMy WebLinkAbout2009-02-04 Min - Board "` REGULAR MEETING
February 4, 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 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 6:03 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, Steven Poncelet, Stephen Hollabaugh, Nancy Waters,
Neil Kaufman, Rosana Matlock, Jessica Wilson, Sara Owens, Bob Mescher, Ed Taylor, Michael
Holley and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross
OTHERS PRESENT: Juanita Schneider, Ronda Brooks, Howard Rosamond, Rick Werthein,
Jerry Bellon, Jerry Krug Jr., Roger Usry, Carl Krane, Bob Sutton Jr, Mark Brown and 3 other
members of the public.
CHANGES TO THE AGENDA
General Manager Holley asked to pull Agenda Item No. 17, Review of District Financial Goals.
PUBLIC INPUT
There was no public input.
DIRECTOR UPDATE
Director Bender reported that he attended the three-day NCPA workshop on Northern California
Power. He also attended the California Municipal Utilities Association (CMUA) Capital Day where
he met Senators and state assembly members. Director Bender said he had an opportunity to
discuss bills that affect local utilities and how to capture energy from PRV stations.
Director Hillstrom also reported that he attended the NCPA strategic workshop and CMUA Capital
Day. He said it was good to make assembly members aware that PG&E and So. Cal are not the
only game in town. They need to remember public power in regards to the broad rules- IOU's
have an affect on the TDPUD.
Director Aguera reported that he also attended the NCPA workshop and felt there was a lot of
good information.
President Hemig also reported that he attended the NCPA workshop and agreed it was quite
educational.
1 Minutes: Feb 4, 2009
CLOSED SESSION
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9, SUBDIVISION
(B), POTENTIAL LITIGATION, ONE CASE
RETURN TO OPEN SESSION
Report from Closed Session
There was no reportable action.
ACTION ITEMS
APPROVE CLOSEOUT CHANGE ORDERS FOR DISTRICT PIPELINE REPLACEMENT —
2008 PROJECT FOR CONTRACTS A AND C
b. This item involves the closeout of 2008 Water Pipeline Replacement Project C and
submission of the notice of completion.
Director Bender moved, and Director Sutton seconded, that the Board:
• Authorize Contract Change Order No. 1, in the amount of a $177,817 payment from the Dis-
trict to Pacific Rim Construction, Inc.
• Authorize the transfer of $169,605 from COP funds to the Water Department General Fund
and $8,212 from Facility Fees to the Water Department General Fund to cover the cost of the
Change Order.
• Adopt the attached draft resolution accepting the District Pipeline Replacement - 2008 -
Contract C project as complete and authorize the filing of the Notice of Completion.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
a. This item involves the closeout of 2008 Water Pipeline Replacement Project A and
submission of the notice of completion.
Director Hillstrom moved, and Director Aguera seconded, that the Board:
• Authorize Contract Change Order No. 1, in the amount of a $249,625.04 payment from the
District to Pacific Rim Construction, Inc.
• Authorize the transfer of$228,213.57 from COP funds to the Water Department General Fund
and $21,411.47 from Facility Fees to the Water Department General Fund to cover the cost of
the Change Order.
• Adopt the attached draft resolution accepting the District Pipeline Replacement - 2008 -
Contract A project as complete and authorize the filing of the Notice of Completion.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSENT CALENDAR
Director Sutton asked to pull Agenda Item No. 11, Extend and Modify the Consulting Services
Agreement with Switchback Marketing
RECEIVE AND ACCEPT ANNUAL REPORTS
a. 2008 Easements Recorded in favor of the TDPUD
2 Minutes: Feb 4, 2009
b. Safety activities for the past year
c. Use of the Boardroom by Outside Organizations in 2008
APPOINT TREASURER OF THE DISTRICT FOR PURPOSES OF INVESTMENT This item
involves the delegation of investment authority to the Treasurer for 2009 pursuant to the
District's policy as defined in Chapter 3.20 Investments.
DESIGNATE THE PRESIDENT OF THE BOARD AS DISTRICT NEGOTIATOR FOR GENERAL
MANAGER COMPENSATION This item involves the appointment of a negotiator to repre-
sent the Board regarding the General Manager's compensation.
AWARD A CONTRACT FOR COMPACT FLUORESCENT LIGHTS This item involves
purchases for the Million CFL Program.
Director Aguera moved, and Director Bender seconded, that the Board approve the consent
calendar. ROLL CALL: All Directors aye, by voice vote. SO MOVED
ACTION ITEMS
EXTEND AND MODIFY THE CONSULTING SERVICES AGREEMENT WITH SWITCHBACK
MARKETING This item involves communications, outreach and marketing services for the
Conservation Department.
Director Aguera moved, and Director Hillstrom seconded, that the Board authorize the General
Manager to extend the current Consulting Services Agreement with Switchback Marketing to
cover FY09 and modify the Fees for Service not to exceed $30,000 in FY09.
ROLL CALL: Director Sutton, no; All other Directors aye, by voice vote. SO MOVED
APPROVE THE CLOSEOUT OF THE FIBREBOARD PUMP DEVELOPMENT PROJECT This
item involves the closeout of the Fibreboard Pump Development Project and submission
of the Notice of Completion.
Director Aguera moved, and Director Hillstrom seconded, that the Board:
• Authorize Contract Change Order No. 1, in the amount of$4,575.00 to Carson Pump LLC
• Authorize the transfer of$4,575 from facilities fees to the Water General Fund
• Adopt the attached draft resolution accepting the Fibreboard Well Drilling Pump Development
and Testing program as complete and authorize staff to file the Notice of Completion
ROLL CALL: All Directors aye, by voice vote. SO MOVED
REVIEW OF FY08 BUDGET, AND CONSIDERATION OF YEAR-END ADJUSTMENTS AND
FY08 CARRY-OVERS This item considers FY08 Budget review, adjustments and dollars
carried into FY09.
Director Aguera moved, and Director Hillstrom seconded, that the Board:
• Authorize the transfer of the Electric Department's FY08 surplus, estimated at $89,000, to
increase the FY09 rate-funded capital budget for additional electric meter replacements and
the Tahoe Donner Substation rebuild.
• Authorize the transfer of the Water Department's surplus, estimated at $561,000, to the
following reserve funds:
o $200,000 to the Reserve for Future Water Meters
3 Minutes: Feb 4, 2009
o $361,000 to reduce the internal loan against the Land Sales Fund
ROLL CALL: All Directors aye, by voice vote. SO MOVED
WORKSHOPS
DISCUSS THE STATUS OF WATER SCADA REPLACEMENT PROJECT This item involves
a discussion about the Water System Supervisory Control and Data Acquisition system.
Ed Taylor gave a presentation:
• Background of SCADA in the District
o SCADA systems were built in the early 1990's
■ Three SCADA Systems include Main area, Glenshire, and Donner Lake
■ Systems were not state-of-the-art when built and are proprietary
o Current SCADA systems are not expandable for additional sites, additional features and
interconnection
• New Information
o Current Water System needs: 76 remote sites, 1,600 information items & a Data Historian
o New SCADA systems: control delivery of water and monitor all operations, provide for a
more energy efficient operations and provide increased level security at remote sites
o Purchasing Strategy: use a Technical Services Contract to get a better product, reduce
conflicts between designer/programmer/builder and reduce cost
• Time Line
o Issue RFP — March, 2009
o Award Contract—April, 2009
o Complete Design —July, 2009
o Purchase Hardware— September, 2009
o Begin Installation — October, 2009
o Project Complete— March, 2010
• Funding: 2006 COP included $400,000 funding for SCADA replacement and additional 2006
COP un-designated funding available up to $800,000
Board discussion:
• Would the new system costs include controls in the field, front end software, programming
and central unit?
• So the software is now proprietary
• The SCADA was replaced once- the District was the first to have a SCADA system in this
area
• Great we are getting a new one
• Will the water SCADA integrate with the electric SCADA- can they talk to each other?
• Why hire a Technical Services Contractor?
• What will be the cost of the new SCADA system?
DISCUSSION OF THE 2009 WATER PIPELINE REPLACEMENT PROJECT AND 2006 COP
FUNDING REVIEW This item involves an update regarding the current status of the
pipeline replacement program.
Neil Kaufman gave a presentation:
• COP Oversight Committee met on Feb. 2, 2009 and discussed past &future projects:
o Original COP based upon 47,700 feet of pipe
0 44,200 feet of pipe installed to date
4 Minutes: Feb 4, 2009
o Additional 18,000 feet in 2009
o Total footage for all COP funds will be about 65,000 to 68,000 feet
o Actual installed footage will be 33% more than original estimate
• Background/History
o Review of water distribution system conducted in 2005
o About 150,000 feet of pipeline required replacement due to poor condition
o Pipelines grouped into three categories of about 50,000 feet each
o COP was issued in 2006 and a portion of the funds were intended to replace all Priority
1 pipelines (47,700 feet)
• New Information
o Pipeline replacement projects conducted in 2006, 2007 & 2008
■ 44,200 feet of pipe was installed
■ Cost for 2006 & 2007 = $4.4 million
■ Estimated cost for 2008 = $3.5 million
o Pipeline condition assessment is updated annually and pipe segments are shifted
between "Priorities" based upon condition
■ Leak detection survey during the Summer of 2008 validated this approach
0 2009 pipeline replacement project covers about 18,000 feet of main line pipe
■ Overall project broken into three construction contracts with an estimated bid price
of$3.0 to 3.2 million
■ Other costs estimated at $500,000 for District inspection labor, outside
geotechnical testing consultant and outside environmental compliance consultant
o About $1,000,000 will remain for construction in 2010
o Anticipated Project Schedule:
■ Nov. 19, 2008: Board approval of CEQA Initial Study
■ Dec. 17, 2008: Public hearing on CEQA Initial Study
■ January 7, 2009: Adoption of Final CEQA Document
■ January 12, 2009: Begin advertising for bids
■ February 24, 2009: Bid openings
■ March 4, 2009: Award of contracts
■ March 18, 2009: Public outreach program workshop
■ May 2009: Begin construction
■ October 2009: Complete construction
• Fiscal Impact
o Funding for the 2009 pipeline construction is included in the 2006 COP
o Facility Fees to fund certain upsized pipeline segments to accommodate future growth
Board Discussion:
• Why are there three contracts?
• Good to have $1 million left for 2010 project
• What does slip lining mean?
• How will rest of line replacement be funded?
• Does having three contracts make for confusion?
• With all the pipeline work in Tahoe Donner- will problems arise between contractors?
REVIEW OF DISTRICT FINANCIAL GOALS This item involves review of District financial
goals, reserves and debt.
Item pulled from the agenda.
5 Minutes: Feb 4, 2009
DISCUSSION OF THE 2008 RENEWABLE PORTFOLIO STANDARD Overview of progress
the District has made in 2008 toward the Goals of District Code 7.83 Renewable Portfolio
Standard
Stephen Hollabaugh gave a presentation:
• Background / History
o Senate Bill SB1078 required IOU's (Investor Owned Utilities) to maintain a minimum of
20% of their power from eligible renewable resources by 2017
o Senate Bill S13107 accelerates the IOU target to 20% by 2010
o TDPUD RPS target is 21% by year end 2010 (Approved by Board in March 2007)
o Renewable resources are defined as non-fossil fueled, including all hydroelectric
o RPS target will be exceeded by year end 2010
• Truckee Donner PUD — Electric Qualified Resources
o Geothermal
o Hydroelectric (small hydro, 30MW or less)
o Hydroelectric (large hydro, above 30MW)
o Solar
o Wind
o Biomass and waste
o Fuel Cells
o Unbundled Renewable Energy Credits (REC's)
• New Information
o Current and future generation sources are:
■ NEBO Generation — Natural Gas, approx 5MW capacity
■ SC&E (shaped capacity and energy)— Coal
■ Pleasant Valley Wind Project— 200 kw, coming June 2009
■ REC's from Pleasant Valley Wind Project—2008, 2009 ...
■ Stampede hydro generation —WAPA, up to 3 MW
■ WAPA allocation of CVP, through NCPA
o Future Generation under contract
■ Western Geo— NCPA approx 1 MW operation date 2010
■ Rye Patch Geothermal, Presco Energy, 2 — 5 MW operation date unknown
■ UAMPS — Simmons Wind Project 6 MW Capacity
o Renewable Portfolio Standard 2008 Results
■ Total Renewables 22.4% (small hydro 4.1%, REC's (wind) 11.7% and large hydro
6.6%)
■ Natural Gas 6.8%
■ Market-All in Pool and Outside Purchases 19.6%
■ Shaped Capacity and Energy (Coal) 51.2%
■ The District has exceeded its RPS goal of 21%
■ The District made significant reductions in the use of coal for power generation
• FY06 coal usage = 80.0%
• FY07 coal usage = 88.7%
• FY08 coal usage = 51.2%
Board discussion:
• Does Truckee still have to conform with California regs even though we are not part of
the California grid?
6 Minutes: Feb 4, 2009
• Why is the wind REC at 11.7%
• What is the news on Rye Patch?
• Do we have State of California requirement for RPS?
• Capital Day was great— learned about AB64 and S1314
DISCUSSION OF THE SOLAR REBATE PROGRAM (SB1) AND GREEN TAGS Presentation
and discussion of the District's SB-1 Solar Program and the District's Voluntary Green Tag
Program.
Kathy Neus gave a presentation on the SB-1 Solar Program:
• Background / History
o SB-1 Commitments: $1,774,000 total, average of $177, 400 per year for ten years and
an install goal of 1,610 Kilowatts
o Incentives: $5.00 per watt installed for 2008, $4.50 for 2009, $4.05 for 2010
• New Information
o 2008 - 12 Applications
■ 10 Completed projects (8 Residential and 2 Commercial)
■ 35.3 kilowatts installed
■ $141,000 Rebated
0 2009 - 11 Applications
■ TSD 123 kilowatt system
■ Online June/July
0 2010 - 11 Applications
'00". • Other utility rebates range from $2.50 (PG&E) to City of Santa Clara at$3.75
• The District's Solar Program Charge per Customer:
o Residential - $0.60 per month
o Small Commercial — $5.00 per month
0 Medium Commercial — $10.00 per month
o Large Commercial - $15.00 per month
Kathy Neus went on to give a presentation about the voluntary Green Tag Program:
• Background / History
o To offer District rate payers an opportunity to reduce their individual environmental
impact by purchasing voluntary renewable energy certificates (RECs)
o Rate payer request/Conservation Committee Recommendation
o $0.02 per kilowatt hour usage
o Five Participating Accounts: three residential and two commercial
o RECs purchased through Bonneville Environmental Foundation
■ One year remaining on contract
■ $0.01 per kilowatt hour
• Other utilities offer programs per kilowatt hour or by the month with types of generation
from wind, photovoltaic, landfill gas and hydro
• Fiscal Impact
0 Charge to Participating Customers: $0.02 per kilowatt hour of usage
0 Direct cost to District: $0.01 per kilowatt hour
0 Indirect Costs to District: staff time and marketing
Board discussion:
Are you in the program, Kathy?
7 Minutes: Feb 4, 2009
.,,. What about using a fixed dollar per month and not per kilowatt use?
• Can a person buy REC's directly?
• How much does it cost the District to manage each month?
• Would it be possible to bring it back to the Board for discussion on lowering the cost per
kilowatt?
ROUTINE BUSINESS
TREASURER'S REPORT
Approval of the report: Director Aguera moved, and Director Hillstrom seconded, that the Board
approve the interim treasurers report for the month ended December 31, 2008.
ROLL CALL: Director Sutton, absent; All other Directors, aye. SO MOVED.
Approval of disbursements: Director Aguera moved, and Director Hillstrom seconded, that the
Board approve the December 2008 disbursements report.
ROLL CALL: Director Sutton, no (feels the Board should approve the checks before they are
mailed); All other Directors, aye. SO MOVED.
CLOSED SESSION
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.8, CONFERENCE
WITH REAL PROPERTY: 14630 GLENSHIRE DRIVE APN 49-011-31; DISTRICT
NEGOTIATOR: GENERAL MANAGER; NEGOTIATING PARTIES: COLDWELL BANKER;
UNDER NEGOTIATION: PRICE AND TERMS
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957, PUBLIC
EMPLOYEE PERFORMANCE EVALUATION - GENERAL MANAGER
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957.6, CONFERENCE
WITH LABOR NEGOTIATOR-DISTRICT DESIGNATED REPRESENTATIVE: BOARD
PRESIDENT; UNREPRESENTED EMPLOYEE: GENERAL MANAGER
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 10:40 PM.
TRUCKEE D ER PUBLIC TILITY DISTRICT
J. 7� Hemiig,'Presiident
Y
Prepared b ) (Gv
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Barbara CahJjl, Deputy District Clerk
8 Minutes: Feb 4, 2009