HomeMy WebLinkAbout2009-02-18 Min - Board REGULAR MEETING
February 18, 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 6:02 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: Kathy Neus, Mary Chapman, Neil Kaufman, Ed Taylor, Nancy
Waters, Joe Horvath, Steven Poncelet, Michael Holley and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross, Jill Vacchina and Robert Hustig
OTHERS PRESENT: Dan Warren
CHANGES TO THE AGENDA
General Manager Holley asked to pull Item No. 20, Closed Session Closed Session Pur-
suant to Government Code Section 54956.9, Subdivision (b), Potential Litigation, One Case
PUBLIC INPUT
There was no public input.
DIRECTOR UPDATE
There was no Director update.
CONSENT CALENDAR
Counsels Steve Gross and Jill Vacchina recused themselves as the firm Porter Simon does
work for the Teichert family.
SET PUBLIC HEARING DATE FOR GENERAL MANAGER COMPENSATION CONSID-
ERATION This item involves setting a date for a public hearing to consider a General
Manager compensation adjustment.
CONSIDERATION OF ANNUAL PURCHASE ORDERS AND CONTRACTS This item
involves the authorization of annual purchase orders and contracts for 2009.
Director Sutton moved, and Director Aguera seconded, that the Board approve the consent
calendar. ROLL CALL: All Directors aye, by voice vote. SO MOVED
1 Minutes: Feb 18, 2009
ACTION ITEMS
REVIEW OF THE PROSSER DAM ROAD PIPELINE CEQA AND SET A PUBLIC
HEARING DATE This item involves the CEQA review of the Prosser Dam Road
Pipeline and setting a public hearing date.
Director Hillstrom moved, and Director Bender seconded, that the Board:
• Authorize staff to file the proposed negative declaration and environmental initial
study with the Office of the Nevada County Clerk.
• Authorize staff to file the proposed negative declaration and environmental study with
responsible and interested agencies and with the State Clearinghouse.
• Authorize staff to publish a notice of public review period and public hearing on the
proposed negative declaration.
• Authorize staff to set a public hearing date of March 18, 2009.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF THE APPLICATION OF GLENSHIRE LAND SALE PROCEEDS TO
THE REMAINING INTERNAL LOAN FROM DISTRICT FUNDS This item is a request to
pay off the remaining internal loan from the District for Glenshire water system
improvement projects.
Dan Warren, representing the Glenshire Residents Association, said they agree with the
current proposal for application of the land sale proceeds. Once the northern parcel is sold,
the Glenshire Residents Association would like the Board to consider applying the funds to
lower the amount of the monthly surcharge.
Director Aguera moved, and Director Hillstrom seconded, that the Board:
• Authorize staff to apply the Glenshire land sale proceeds in the amount of
$141,436.75 to the internal loan from the District's Land Sales Fund.
• Authorize staff to transfer $33,484.54 from the Surcharge account to pay off the
balance owed to the District's Land Sales Fund.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
ADOPTION OF AN ADDENDUM TO THE CEQA ELECTRIC SYSTEM DISTRIBUTION
PROJECT MITIGATED NEGATIVE DECLARATION This item involves the adoption
and approval of a CEQA Addendum to the Electric Distribution System Project MND.
Director Bender moved, and Director Aguera seconded, that the Board take the following
actions regarding the Addendum to the CEQA Electric System Distribution Project MND:
• Find that the District has officially considered this Addendum in light of the Adminis-
trative Record on file for the adopted CEQA Electric System Distribution Project MND
(SCH# 2007122022) in compliance with California Code of Regulations Section
15164.
• Find that minor additions contained in the Addendum document will not have a
significant effect upon the environment due to the following: (1) The project does not
2 Minutes: Feb 18, 2009
have the potential to reduce the habitat of any plant or wildlife species identified in lo-
cal or regional plans, policies or regulations, or by the California Department of Fish
and Game or United States Fish and Wildlife Service; (2) Mitigation measures are
incorporated into the project to minimize any potential impact to biological or cultural
resources and water quality.
• Approve and adopt the Addendum to the CEQA Electric System Distribution Project
MND (SCH# 2007122022) for the Tahoe Donner Substation.
• Authorize the General Manager to sign the Addendum and attach it to the existing
CEQA Electric System Distribution Project MND on file with the District.
ROLL CALL: Director Sutton, no; All other Directors aye, by voice vote. SO MOVED
ADOPT REVISIONS TO THE DISTRICT'S CONFLICT OF INTEREST CODE This item
involves revisions to the District's conflict-of-interest code.
Director Aguera moved, and Director Hillstrom seconded, that the Board adopt the
resolution amending the District's conflict-of-interest code.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
STATUS OF PAYMENTS FOR DISTRICT PIPELINE REPLACEMENT PROJECT 2008
FOR CONTRACTS A, B AND C This item is a discussion of payments for 2008
Pipeline Contracts A, B, and C.
There was no reportable action for this item.
WORKSHOPS
DISCUSSION OF THE ELECTRIC SYSTEM MASTER PLAN REPORT This item
involves the review of the Electric System Master Plan final draft report.
Joe Horvath and consultant Robert Hurtig, Manager of Planning and System Studies at ECI,
gave a presentation:
• Background
o A Master Plan is a comprehensive planning report; blueprint for orderly
expansion; basis for establishment of facility fees (AB1600)
o On May 29, 2008 the Board approved the selection of Electrical Consultants, Inc.
(ECI) to prepare the Master Plan
• Purpose of the Electric System Master Plan
o Provide the District with an orderly plan for carrying out construction & other
needed improvements.
o Plan & complete improvements in the most economic manner possible.
o Provide the most up-to-date forecast possible of financial requirements for the
next fifteen (15) years.
o Evaluate the existing & projected system configuration, voltage levels and load
balance in a manner that endeavors to increase the quality of service.
• Model Development provided model from GIS export & added substation equipment
• System summary: 4 substations, 128 miles overhead conductor, 77 miles under-
ground for a total of 205 miles of primary conductor
• Growth Projections
3 Minutes: Feb 18, 2009
o Statistical analysis of historical monthly data
o Town of Truckee General Plan
o Judgment of the District's Staff and ECI
• Service Interruption Statistics
o Power Supplier number one cause
o Animals second major cause
o Repairs and upgrades third major cause
• Growth & Loading
0 2.3 MW of additional load at 5 years
0 8.3 MW of additional load at 15 years
o Equals 1.82% growth rate
• Evaluation Criteria
o Normal system voltage — 118V; 114V at the consumer
o Contingency system voltage — 114V; 110V at the consumer
o Transformer loading — 100%
o Other equipment loading 80%
• Contingency Summary
o Donner Lake — below voltage criteria existing and future loads, conductor over-
loading
o Tahoe Donner — Could not transfer TD-1, voltage criteria, conductor loading >
200%
o Martis Valley—Voltage criteria 15 yr, conductor loading > 100% existing
o Truckee —Voltage criteria existing, conductor loading > 100% existing
• Summary of Phase based Projects- Cost by Year
o Years 1-5 $6,453,000
o Years 6-10 $1,620,000
o Years 11-15 $1,203,000
■ Total $9,276,000
• Next Steps
o Perform environmental review in compliance with CEQA
o Review CEQA documents and set a public hearing
o Approve and adopt the Master Plan and CEQA documents
o Electric Facility Fees
o Identify Master Plan facility fee projects
o Recommendation to modify facility fees
There was no public comment.
Board discussion:
• Will there be any more than 4 substations- are they sufficient
• What percent of the system is not 3-phase
• Will the Electric Master Plan allow for 3-phase everywhere
• Will major parts of the system now go underground
• Look at needs
• Tahoe Donner already at buildout
Why was a consultant hired
• Is an electric rate evaluation part of the plan
• Who determines the scope of the plan
4 Minutes: Feb 18, 2009
• Give the Conservation Committee time to look at the draft Electric Master Plan -there
are things unique to our system- they could review and comment
• Are there areas in Truckee that want to go underground
• The cost to go underground is overwhelming
• The plan seems to be project specific
• Are there key areas where projects could overlap with pipeline projects
• After the Board votes on the Electric Master Plan, when do projects start
• Staff will determine what to construct year by year
• There are already some planned projects such as substation upgrades
• Were there any surprises in the plan
• Are the costs where you thought they would be in the plan
• The draft Master Plan is a public document and should be circulated
REVIEW OF DISTRICT FINANCIAL GOALS This item involves review of District
financial goals, reserves and debt.
Mary Chapman gave a presentation:
• History
0 2004: the Board adopted a set of financial goals
o April 2008: financial goals were last reviewed
o October 2009: minor changes adopted during Title 3 update of the District Code
o Board acknowledged that it would take time to achieve some of the reserve goals
,., • Planning Goals
o Review electric and water master plans at least every five years
■ Electric Master Plan draft CEQA is currently under review
■ Water Master Plan is scheduled for FY11
o Prepare two-year operating budget with semi-annual reviews
■ First two-year operating budget this year for FY10 and FY11
o Prepare ten-year Capital Improvement Plan- scheduled to be done by end FY09
• Debt Goals
o No more than one-half projected annual facilities fee revenue committed to debt
service
■ FY09 projected water facilities fees revenue is $664,000
■ FY09 water debt payments from facilities fees is $506,931
■ % of annual facilities fees revenue committed to debt is 77%
o No debt more than 25 year maturity
■ 2006 COPs were a 30 year financing — 28 years remaining
• Operating (Cash) Reserve Goals
o General fund cash reserve should be twice the highest month budgeted
expenditures
■ Electric general fund reserve goal $7,049,000; current balance at 12-31-08 is
$3,891,000
■ Water general fund reserve goal $2,705,000; current balance at 12-31-08 is
$1,264,000
, ... • Operating (Cash) Reserve Goals
o Electric Rate Stabilization Fund balance should be $3,000,000; current balance at
12/31/08 is $1,575,000; FY09 budgeted contribution is $430,000
• Capital Reserve Goals
5 Minutes: Feb 18, 2009
o There should be a revolving water capital reserve fund in the amount of
$4,000,000
■ Capital Reserve Fund — combined balance $4,201,000
■ Internal loans from this fund
• Glenshire water system improvements $143,000
• Purchase Steele property—water share $329,000
• Water General Fund — 12/31/02 overdraft $525,000
Total internal loans $997,000
o There should be an electric capital reserve fund in the amount of $1,000,000: not
been funded yet; an opportunity for funding will occur in FY13
There was no public comment.
Board discussion:
• Great progress toward goals
• Will be good to fund the electric capital reserve in 2013
• Has there been a general fund improvement each month over the last year
• Director Hillstrom stated he was not here when all "buckets of funds" were estab-
lished- what is the thought behind them- what happens if we need more in one
"bucket"
DISCUSSION OF THE BROWN ACT AND PROPOSITION 218 This involves a
discussion lead by Counsel Steve Gross on the Brown Act and on Proposition 218.
Jill Vacchina, Porter Simon, gave a presentation on Proposition 218:
• Proposition 218 is the "right to vote on tax act"
o Cal. Const. Art. XIII C: Imposed restrictions on new and increased taxes. It also
extended the initiative power to the reduction and repeal of local taxes, assess-
ments, fees and charges.
o Cal. Const. Art. XIII D: Imposed restrictions on new and increased assessments,
including standby charges, and property-related fees and charges.
• Proposition 218: Assessments (Donner Lake); Property-Related Fees and Charges
for water and electric (standby); Voter Initiatives
• Proposition 218 requirements
o Assessments can be repealed by voter initiative
o Procedures—supported by detailed engineer's report, notice & hearing, property
owner approval by a mail ballot process
o Burden of proof to challenge assessment validity
o Requires assessment of publicly owned property within the assessment district
• Increased/Imposed Fee Requirements
o Procedural: Notice, public hearing and majority protest
o Voter-Approval: In addition to majority protest procedures, some fees require a
majority vote to approve, but water fees are exempt
o Use: Fees for general governmental services prohibited
o Revenues: Must only be used for the purpose for which the fee was imposed
o Amount: Fee must not exceed the funds required to provide the service, and the
fee must not exceed the proportional cost of the service attributable to the parcel;
6 Minutes: Feb 18, 2009
• Local Voter initiative may act to reduce a public agency's water rate and other water
delivery charges
• Application to PUD fees and charges
o Water Rates (monthly charges, includes surcharges)
o Exempt from Prop 218: water connection fees, facilities fees, electrical fees
Board discussion:
• Why are water and electric different
• What is the impact on us to determine rates
Jill Vacchina, Porter Simon, gave a presentation on The Ralph M. Brown Act:
• The open meeting law: "Public agencies exist for the purpose of conducting public
business, and the public has the right to know how its "collaborative decisions" are
being made. It represents the balance between access, and the need for confidential
candor. The Act favors access, with narrow exceptions for confidentiality where there
has been a demonstrated need."
• Brown Act may be divided into six topics
o Application of the Act: applies to the TDPUD Board of Directors: a legislative body
of a local public agency
o What constitutes a "meeting"
■ Any congregation of a majority of the TDPUD Board at the same time and
place to hear, discuss or deliberate on any matter within its jurisdiction
■ "Serial meetings": For the purpose of developing a concurrence as to action to
be taken. A series of communications (whether in person or by phone or other
media), each of which individually involves less than a quorum, but which, tak-
en as a whole, involve a majority of the board's members
■ Exemptions: conferences open to the general public that involve issues of
interest to the TDPUD; other public meetings; social or ceremonial occasions,
as long as a majority of the TDPUD Directors do not discuss application of
specific issues to the TDPUD; and individual contacts between members of
the public and individual TDPUD Directors.
o Agenda requirements
■ Regular Meetings: agenda posted at least 72 hours prior w/ brief descriptions
■ Special Meetings: agenda posted at least 24 hours prior w/ general
descriptions
■ Emergency Meetings: 1 hour notice (may proceed without an agenda)
■ Exceptions for non-agenda items:
• At regular meeting if, by majority vote, Board determines matter is an
emergency; 2/3 of Board determines need for immediate action that cannot
reasonably wait for next regular meeting; item may be continued to
subsequent meeting held within five days of the meeting for which item
was properly posted.
• Closed Session Agendas: description of all items to be considered; orally
announce in open session the subject matter; report action in open session
o The public's rights
Meetings open to public, and agenda must contain opportunity for public
testimony for each agendized item, reasonable time limitations, can't take
action on matter raised for first time in "public comment" if item not on agenda
7 Minutes: Feb 18, 2009
■ Location of meetings: Generally, regular and special meetings shall be held
within TDPUD's boundaries
o Permissible closed sessions topics: personnel exemptions, pending litigation,
labor negotiation, real estate negotiations
o Remedies and sanctions for violation: civil and criminal
RETENTION OF A CONSULTANT TO PERFORM A WATER RATE STUDY This item
involves the retention of a consultant to perform a water rate study.
Neil Kaufman gave a presentation:
• History
o AB 2572 requires District to begin reading all water meters installed since 1992
and commence billing on a volumetric basis
o The current commercial volumetric rates use a declining block structure and do
not cover single-family residential properties
• New Information
o Re-examination and updating of the water rate structure is needed for compliance
with AB 2572
o Parameters to be considered
■ Base consumption allowances vs. no consumption allowance
■ Pumping cost recovery
■ Flat rate volumetric pricing vs. inclining block volumetric pricing
■ Seasonal pricing
■ Conservation incentives
■ Matching of revenues to operational costs
• Proposed schedule:
o Issue RFP — February 23
o Proposal submission deadline — March 20
o RFP Review— March 23-27
o Board of Directors authorizes contract—April 1
o Board Workshop on water rate structure concepts— May 6
o Preliminary rate study report presented to Board —August 5
o Final rate study report presented to Board of Directors —August 19
o Public Workshop/Board Mtg. on proposed water rates— Sept 2
o Review and approval of new Water Rates— September 16
o Mailing of Notices of Public Hearing —After September 16
o Public Hearing on Proposed Water Rates and Board adoption vote after protests
presented — November 4
o Implementation of New Rates— January 1, 2010
There was no public comment.
Board discussion:
• What will be the estimated cost to hire a consultant
• Could we do the study ourselves
• Are there rate experts that do this analysis
• With the new meters, we need a consultant to tell us how to set rates
• How close will the rates be to what we already have set
8 Minutes: Feb 18, 2009
• We need a recommendation so we can move ahead
• Presentation was thorough
• Would like a couple Board workshop on concepts
• Each member of the Board has preferred concepts
• Other districts are doing this with new rate structures. Can we get reports from them
on how and what they did? What process did they go through and the reaction from
their customers?
• How long is the pilot program
DISCUSS REVISIONS TO DISTRICT CODE TITLE 3, CHAPTER 3.08 PURCHASING
This item concerns modifications to District Code Title 3, Chapter 3.08 Purchasing.
Mary Chapman gave a presentation:
• Background / History
o July 2, 2008, the Board approved changes to Title 3, Chapter 3.08 Purchasing
o Proposed changes include additional procedures and provide clarifying language
• Proposed changes are as follows:
o Notify the Board prior to or concurrent with going to bid or issuing an RFP
o Public notices in newspaper will also be posted on District website
o Incorporate "Market Basket" and "Sole Source" purchasing approaches into Code
o Added section to provide a procedure for entering into agreements for "special
services" including professional services and defined "professional services"
according to California Government Code
o Added additional criteria to be used in evaluating consulting services including
"demonstrated competence" and "professional qualifications"
There was no public input.
Board discussion:
• Market Basket- is this a reaction to a problem
• Ads are not just placed in the legal section of the paper- but also as display ads
• Which type of ad attracts more attention
• Would like an estimate of what spend on ads
TREASURER'S REPORT
Approval of the report: Director Hillstrom moved, and Director Aguera seconded, that the
Board approve the interim treasurer's report for the month ended January 31, 2009.
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 January 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.
9 Minutes: Feb 18, 2009
CONSIDERATION OF MINUTES FOR DECEMBER 17, 2008, JANUARY 7 AND
FEBRUARY 4, 2009
Director Aguera moved, and Director Bender seconded, that the Board approve the minutes
of December 17, 2008, January 7 and February 4, 2009.
ROLL CALL: All Directors, aye. SO MOVED.
CLOSED SESSION
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9, SUBDI-
VISION (B), POTENTIAL LITIGATION, ONE CASE
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957.6, CONFE-
RENCE WITH LABOR NEGOTIATOR-DISTRICT DESIGNATED REPRESENTATIVE:
BOARD PRESIDENT; UNREPRESENTED EMPLOYEE: GENERAL MANAGER
RETURN TO OPEN SESSION
Report on closed session.
There was no reportable action.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 8:47 PM.
TRUCKEE D NER PUBLIC UTILITY DISTRICT
J on Hemig, PreAident
Prepared by
Barbara Cahifl, Deputy District Clerk
bhc
10 Minutes: Feb 18, 2009