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Home My WebLink About2009-03-04 Min - Board CONSENT APPROVE FSA REVIEW FOR TRANSFER OF 5MW OF NEBO NATURAL GAS GENERATION FROM THE CITY OF PAYSON TO TRUCKEE DONNER PUD FSA review to transfer 5MW from City of Payson to Truckee Donner PUD. CONSIDERATION OF ANNUAL PURCHASE ORDERS AND CONTRACTS This item involves the authorization of annual purchase orders and contracts for 2009. Director Bender moved, and Director Aguera seconded, that the Board approve the consent calendar. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED ACTION ADOPT AN ORDINANCE TO ADJUST THE GENERAL MANAGER'S COMPENSATION This item involves adoption of an Ordinance to modify compensation for the General Manager. Director Aguera moved, and Director Hemig seconded, that the Board approve the ordinance with the adjustment to the General Manager's compensation and authorize the President of the Board to sign the ordinance. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED APPROVE A CHANGE ORDER FOR THE CARPORT STRUCTURE PROJECT This item involves the change order No. 1 for covered parking at the District headquarters. Director Bender moved, and Director Hillstrom seconded, that the Board authorize Contract Change Order No. 1 in the amount of $34,119.74 to Plummberbuilt Custom Construction Inc.; and authorize the transfer of$34,119.74 from the Land Sales fund to the General Fund. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED ADOPT AN ORDINANCE REVISING A RATE FOR THE VOLUNTARY RENEWABLE ENERGY CERTIFICATE PROGRAM (GREEN TAG PER KILOWATT HOUR FEE) This involves a revision to the District's Voluntary Green Tag Program Rate. Director Hillstrom moved, and Director Bender seconded, that the Board schedule a public hearing for March 18, 2009 to amend the Volunteer Renewable Energy Certificate rate to $0.015 per kilowatt hour through an ordinance. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED AWARD OF DISTRICT PIPELINE REPLACEMENT 2009 CONTRACTS This item involves award of Contracts for the District Pipeline Replacement 2009 Project. 2 Minutes: March 4, 2009 Award Contract A Director Aguera moved, and Director Bender seconded, that the Board award the District Pipeline Replacement — 2009 — Contract A to Hunt's Excavating in the amount of $694,576.95 plus a 10 percent change order allowance of$70,000; and authorize the transfer of up to $764,576.95 from 2006 COP funds to the Water Department General Fund. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED Award Contract B Director Hillstrom moved, and Director Bender seconded, that the Board award the District Pipeline Replacement — 2009 — Contract B to Hunt's Excavating in the amount of $1,037,057.00 plus a 10 percent change order allowance of $104,000; and authorize the transfer of up to $1,061,053.87 from 2006 COP funds and up to $80,103.13 from Water Department Facility Fees to the Water Department General Fund. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED Award Contract C General Manager Michael Holley asked the Board to delay this item until legal counsel for Wunschel & Sons and the bonding agent arrive. APPROVE THE RESOLUTION FOR REVISIONS TO DISTRICT CODE, TITLE 3 FINANCE & ACCOUNTING, CHAPTER 3.08, PURCHASING This item involves approval of a resolution to adopt the revisions to District Code, Title 3, Finance and Accounting. Director Bender moved, and Director Hillstrom seconded, that the Board approve the resolution to include proposed changes to District Code Title 3, Chapter 3.08 Purchasing. ROLL CALL: Director Sutton, absent; All other Directors aye, by voice vote. SO MOVED WORKSHOPS REVIEW OF THE DISTRICT COLLECTION PROCESS This item involves the District Collection Process in regards to low income accounts. Mary Chapman gave a presentation: • Background / History o District follows a disciplined collection process o Historically, write-offs have been very low, but changes in the economic conditions, write-offs are increasing o Write offs by year in dollars • 2004 $221716 93 accounts • 2005 $17,949 88 accounts • 2006 $237997 96 accounts • 2007 $14,785 85 accounts • 2008 $29,276 104 accounts o More customers are receiving delinquent notices who haven't in the past 3 Minutes: March 4, 2009 • New Information o Three proposed changes to District's operating procedures that will help low income customers who are struggling economically • Implement Pay-As-You-Go metering • Web based or card swipe system • Available to all customers • Requirement for customers who consistently receive 48 hour notices • Advantages: no electric deposit would be required, allows customers to manage their energy usage, eliminate some fees and charges, reduce staff time • Extend amortization period for a customer's past due account from 12 months up to 24 months • Current State law and District policy allow for amortizing delinquent balances up to 12 months • District could extend amortization period up to 24 months • Change would require Board action to amend code • Customers would have to keep their account current • Implement a low income energy conservation incentive program • The program would only be available to low income full time residents • Perform energy survey to identify energy saving opportunities • Provide measures such as light bulbs and other energy saving devices • Issue a one-time voucher to those who participate in the energy survey to apply toward their energy bill Fiscal Impact o Pay-As-You-Go Metering • Still investigating available systems o Extend amortization of delinquent balances up to 24 months- relatively low fiscal impact o Low Income Energy Conservation Incentive Program • Fund from Public Benefits low income component — one time voucher: $100 to $200 • Approximate cost of would be $40,000 plus funds for administrative expenses • Conservation measures would be funded from other conservation program funds There was no public comment. Board discussion: • With the Pay-As-You-Go Metering, what happens if the light go off on a weekend or after hours • Pay-As-You-Go Metering would require some staff time to issue cards and place dollars on cards • Easier to pay a big bill over 24 months • What about customers who pay a set amount each month- how would an amortization plan affect them • What if a lot of people lose jobs and become low income- more people will come in to take advantage of programs • At least this is a way to help families pay the bill 4 Minutes: March 4, 2009 • Come back to the Board to set a policy • Is a voucher a come as you need it? Should not be an auto payout. Should apply for it. • Would like a low income rate- but complicated • What about applying for a voucher at $10 to $20 per month instead of one voucher for $100 • Are there dollars we can set aside for this • Good to have energy audit and implement- do other utilities do this • Pro active stance if we need it • Broader low income programs- analyze at other workshop • Good to trigger energy audit • Want to see draft energy audit form • Must think about the welfare of a person- go that extra mile • Good to make a third party notification available for customers over 65 • Need to be more sensitive to a situation • Pay as you go seems like a good idea • Extend the amortization of a past due balance as soon as possible • Low Income Energy Programs is clever offering a voucher per year REVIEW OF PROPOSED CHANGES TO THE DISTRICT'S RESERVE FUNDS AND IN- TERNAL LOANS This items concerns a discussion of board designated reserve funds, internal loans and recommended changes Bob Mescher gave a presentation: • Types of Cash and Investment Funds o Restricted Funds • Mandated by an outside agency for a specific purpose • District is in compliance with all requirements • No proposed changes o Board Designated Funds • Voluntarily established by the Board for specific reasons • Currently ten board designated funds of which several overlapping purposes and can be consolidated into fewer funds o Unrestricted Funds • All other funds • Used for general operations or capital improvements • Synonymous with "General Fund - Cash and Investments" and "Operating Cash" • Part of District's Operating Cash Reserves • Title 3 of the District Code covers Reserve Goals • Important to maintain adequate level of reserves o Rate stabilization • Unanticipated expenditures • Unanticipated disruptions in cash flow • Anticipated future capital projects o Improved borrowing capability • Reasons for proposed changes o Simplify reserve reporting 5 Minutes: March 4, 2009 o More understandable and transparent reporting o Reduce staffs accounting time o Better alignment with Board goals • Internal Loan Balances o Electric ■ 2006 Broadband litigation expenditure (against storm damage reserve): pro- pose to be repaid by electric operating cash reserves $84,005 o Water ■ 2002 Deficit (against reserve for future water meters):propose to be repaid by water land sales fund $410,147 ■ System improvement projects (against reserve for future water meters):propose to be repaid by water land sales fund $329,691 ■ 2006 Broadband litigation expenditures(against reserve for future water me- ters):propose to be repaid by electric operating cash reserves $84,006 ■ Steele property purchase (against land sales fund): propose to be repaid by wa- ter land sales fund $329,140 ■ 2002 Deficit purchase (against land sales fund): propose to be repaid by water land sales fund $164,202 • Electric—projected reserve status and reserve goals (in thousands) Feb 09 Balance Board Goals Operating Cash $4,688 $7,049 Electric Rate Reserve $1,600 $3,000 Capital Replacement $ 236 $1,000 Vehicle Replacement $ 160 -0- • Water- projected reserve status and reserve goals Feb 09 Balance Board Goals Operating Cash $ 100 $2,705 Debt Service Coverage $ 838 -0- Capital Replacement $4,038 $4,000 Vehicle Replacement $ 140 -0- Future Water Meters $1,484 -0- There was no public comment. Board discussion: • Does paying off Broadband look like concealing dollars- how will we track • Doesn't the District have great fiber lines- would like a broadband workshop • What does the total work order for Broadband expenses look like- how can the District recover from Broadband costs • Why are there so many reserve funds • Good to see accounting simplify • Need to remember and understand the genesis- some reserves proposed are new accounts • Land sales would go to capital replacement • Good job 6 Minutes: March 4, 2009 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 RETURN TO OPEN SESSION Report from closed session There was no reportable action. AWARD OF DISTRICT PIPELINE REPLACEMENT 2009 CONTRACTS This item involves award of Contracts for the District Pipeline Replacement 2009 Project. Award Contract C Director Bender moved, and Director Aguera seconded, that the Board find Wunschel & Sons bid on Pipeline Replacement 2009 Contract C to be non-responsive. ROLL CALL: Director Sutton, absent; Director Hillstrom, no; All other Directors aye, by voice vote. SO MOVED Director Bender moved, and Director Aguera seconded, that the Board award the District Pipeline Replacement — 2009 — Contract C to Cruz Excavating in the amount of $656,993.00 plus a 10 percent change order allowance of $65,000; and authorize the transfer of up to $653,723.38 from COP funds, up to $15,723.35 from Water Department Facility Fees and up to $52,546.27 from Electric Department Facility Fees to the Water Department General Fund. ROLL CALL: Director Sutton, absent; Director Hillstrom, no; All other Directors aye, by voice vote. SO MOVED ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 9:35 PM. TRUCKE ONN PUBLIC UTILITY DISTRICT J. Rorawmig, Pre ident Pre pared b � Are,. p Y �64te Barbara CahM, Deputy District Clerk 7 Minutes: March 4, 2009