HomeMy WebLinkAbout2009-03-19 Min - Board REGULAR MEETING
March 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 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 6:03 PM in the TDPUD Board room by President Hemig.
ROLL CALL: Directors Joe Aguera, Ron Hemig, and John Hillstrom were present. Directors
Jeff Bender and Pat Sutton were absent.
EMPLOYEES PRESENT: Mark Thomas, Kathy Neus, Bob Mescher, Steven Poncelet,
Steve Hollabaugh, Rosana Matlock, Neil Kaufman, Michael Holley and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross, Kappy Mann and Jennifer Boehm
OTHERS PRESENT: Jake Hudson, Juanita Schneider, John Hugo, Carol Pauli, Russell
Pauli, Ronda Brook, Phillip Bjorkman and Rolf Godon
CHANGES TO THE AGENDA
There were no changes to the agenda.
PUBLIC INPUT
Rolf Godon is concerned about the recent salary raise to the General Manager. He was
under the impression that the raise was a performance reward and performance has been
exemplary. It is difficult to swallow that the Board gave a raise in this economic time as this
action is inappropriate- comparing this to AIG bonuses. Need to have compassion for the
rate payer when dollars are used this way instead of saving dollars.
Juanita Schneider said the General Manager raise has been in the works for a long time.
People should attend more meetings before the actual vote. There is no comparison to AIG.
She agreed with the Board's action for the raise.
John Hugo distributed a letter to the Board from Truckee Donner Recreation and Park
District. The document is a Non Binding Letter of Intent for lease of District controlled prop-
erty for an Ice Skating Rink Facility, along with an assignment of lease between Truckee
Donner Park & Rec and The Igloo Ice Arena of Truckee. Mr. Hugo would like the Board to
resume talks from April 2008 about the possibility of an Ice Skating Rink Facility bordering
Brockway Road near the Rodeo Grounds.
Carol Pauli read her letter regarding the proposed ice skating rink facility and her concerns
about Mr. Hugo's transparency, parking impact during various events and the Truckee
Championship Rodeo, possible Reno-Sparks ice facility, concern about an ice facility suc-
cess in Truckee, and the possibility of a different site.
1 Minutes: March 18, 2009
Juanita Schneider said she was present at a Town Council meeting where the parking
problem was discussed. She feels there has been too much time spent on this location for
the ice arena already. There needs to be a better location, plus the financial situation does
not look good at this time.
President Hemig said he will speak with General Manager Holley about this request. There
needs to be a better understanding of the concerns. The Board had a number of questions
from an Ice Arena workshop last April 2008 and needs answers before additional Board
time is spent on this item.
DIRECTOR UPDATE
After the storm outage two weeks ago, Director Hillstrom called the Sanitary District to ask
their staff to look into timing of the reset switches at their pump stations so they would not
continue to run for long periods after an outage. Sanitary staff was not aware this could be
done.
PUBLIC HEARINGS
PROSSER DAM ROAD PIPELINE CEQA INITIAL STUDY
President Hemig called the Public Hearing to order.
Carol Pauli said she was not aware of the CEQA document and would like time to review it.
Counsel Steve Gross said the Board could continue the Public Hearing and not close it this
evening. President Hemig made a decision to extend the public comment period to March
31, 2009 and to continue the Public Hearing to April 1, 2009.
RATE REVISION FOR THE VOLUNTARY RENEWABLE ENERGY CERTIFICATE
PROGRAM (GREEN TAGS)
Kathy Neus gave a presentation:
• Background / History
o Offer rate payers an opportunity to reduce their individual environmental impact
• Rate is set at $0.02/kWh
• Currently 6 participants
• Annual Administrative costs < $1,000
o RECs are purchased from Bonneville Environmental Foundation
• RECs are all wind
• Contract expires March 2010
• 168 RECs have been purchased
• Proposed Changes
o Reduce customer charge to $0.015
• Covers cost of REC purchase
• Contributes toward Administrative costs (less than $1,000 annually)
o Expand Marketing and Outreach by integrating into Conservation Marketing
2 Minutes: March 18, 2009
President Hemig opened the Public Hearing. There was no public comment. The Public
Hearing was closed.
CONSENT CALENDAR
Philip Bjorkman of Loggers Unlimited asked the Board to remove item Number 8, Award of
Tree Trimming Bid, from the consent calendar so the public could comment.
CONSIDERATION OF THE AWARD OF GEOTECHNICAL SERVICES This item involves
geotechnical services for 2009 District construction projects.
Director Aguera moved, and Director Hillstrom seconded, that the Board approve the
consent calendar. ROLL CALL: Director Bender and Sutton, absent; All other Directors aye,
by voice vote. SO MOVED
ACTION
CONSIDERATION OF THE AWARD OF A TREE TRIMMING BID This item concerns the
award of a contract for tree trimming services.
Director Aguera moved, and Director Hillstrom seconded, that the Board reject all bids and
ask for a rebid. ROLL CALL: Director Bender and Sutton, absent; All other Directors aye, by
voice vote. SO MOVED
CONSIDERATION OF THE AWARD OF TRANSFORMER BIDS This item concerns the
annual purchase of transformers required for customer construction and District
replacement.
Director Aguera moved, and Director Hillstrom seconded, that the Board:
• Find Pacific Utilities and Pauwels non-responsive to the District Contract
• Find General Pacific non-compliant with District standards for Schedule B
• Award Schedule B to HD Supply with contract prices as listed on the Transformer Bid
Award Recommendation, to be effective until 6/30/09 where after the prices will be
subject to escalation per the District Contract
• Award Schedules A, C and D to General Pacific with contract prices as listed on the
Transformer Bid Award Recommendation, to be effective until 6/30/09 where after
the prices will be subject to escalation per the District Contract
ROLL CALL: Director Bender and Sutton, absent; All other Directors aye, by voice vote.
SO MOVED
APPOINTMENT OF A DIRECTOR TO REVIEW THE WATER RATE STUDY PROPOSALS
This item involves participation of a Board member to add perspective to the
consultant selection process relating to the water rate design.
The Board by acclamation appointed Director Jeff Bender to serve on the committee to
., review the Water Rate Study proposals. Directors Bender and Sutton were absent.
3 Minutes: March 18, 2009
SCHEDULE A PUBLIC HEARING TO ACCEPT INPUT REGARDING PUBLIC HEALTH
r` GOALS This item involves scheduling a public hearing date to receive input on the
Public Health Goals.
Director Aguera moved, and Director Hillstrom seconded, that the Board schedule a public
hearing on April 1, 2009 regular Board meeting for accepting and responding to public
comment on the Public Health Goal Report. ROLL CALL: Director Bender and Sutton,
absent; All other Directors aye, by voice vote. SO MOVED
CHANGE OF PROVIDER FOR REAL ESTATE LISTING SERVICES This item involves
the cancellation of an existing contract for real estate sales and marketing for
AP N 49-011-31.
Director Aguera moved, and Director Hemig seconded, that the Board:
• Cancel the current contract with Coldwell Banker
• Enter into a new listing Agreement with Keller Williams Realty retaining Kappy Mann
and Jennifer Boehm as the District real estate agents as it pertain to Glenshire Drive
ROLL CALL: Director Bender and Sutton, absent; All other Directors aye, by voice vote.
SO MOVED
ADOPT AN ORDINANCE REVISING THE VOLUNTARY RENEWABLE ENERGY
CERTIFICATE PROGRAM RATE This item involves a revision to the Voluntary
Renewable Energy Certificate Program (Green Tag per kilowatt hour fee).
Director Aguera moved, and Director Hillstrom seconded, that the Board adopt the
ordinance to amend the Voluntary Renewable Energy Certificate Program rate to $0.015
per kilowatt hour usage. ROLL CALL: Director Bender and Sutton, absent; All other
Directors aye, by voice vote. SO MOVED
APPROVE THE RESOLUTION FOR REVISIONS TO DISTRICT CODE, TITLE 5
CUSTOMER RELATIONS This item involves approval of a resolution to adopt the
revisions to District Code, Title 5, Customer Relations, Chapters 5.08, 5.12 and 5.16.
Director Hillstrom moved, and Director Aguera seconded, that the Board approve the
resolution adopting the amendments to the District Code Title 5, Customer Relations,
Chapters 5.08, 5.12 and 5.16. ROLL CALL: Director Bender and Sutton, absent; All other
Directors aye, by voice vote. SO MOVED
APPROVE THE RESOLUTION TO CONSOLIDATE BOARD DESIGNED RESERVE
FUNDS AND EXTINGUISH INTERNAL LOANS This item involves approval of
consolidating Board designated reserve funds and extinguishing internal loans.
Director Hemig moved, and Director Hillstrom seconded, that the Board adopt the resolution
approving the consolidation of Board designated Reserve Funds and extinguishing Internal
Loans. ROLL CALL: Director Bender and Sutton, absent; All other Directors aye, by voice
vote. SO MOVED
4 Minutes: March 18, 2009
WORKSHOPS
DISCUSSION OF THE PROGRESS IN ENERGY SAVINGS Review of the Results of the
Energy Savings Improvements at the Senior Center and the FY08 Evaluation
Measurement and Verification (EM&V) Report
Steven Poncelet gave a presentation:
• Background / History
o District made significant investments in the Conservation Department in FY08:
new programs, new staff, increased marketing and outreach
o District is required to report results of public benefit and energy efficiency
spending: SB1037/AB2021; Evaluation, Measurement, & Verification (EM&V);
FY08 actual results and FY09 projected results; cost-effectiveness results
• On-going process to evaluate programs
o FY08 EM&V Report completed and reported to Ca. Energy Commission (CEC)
o FY08 District program results and cost-effectiveness were very strong
• Spent 3.51% of retail sales on public benefit & energy efficiency programs
• Reduced energy usage in first year of 3%
• Net annual savings of 4,455 MWh, lifetime savings 36,792 MWh
• Utility cost to customer 1.3 cents/kWh
• Senior Center low-income weatherization project included in EM&V results
with a net annual savings of 85,278 kWh, lifetime 1,279,170 kWh
• TDPUD Leading Public Power's Efforts: top energy efficiency expenditures as a
percent of retail sales
o Redding 2.80%, TDPUD 2.70%, SMUD 2.50%, Roseville 1.80%, Palo Alto 1.70%,
Healdsburg 1.30%, Riverside 1.10%, Merced .90%, Lassen .70%, Trinity .40%
• Maximizing the benefit of District's Investment in Conservation and Energy Efficiency
o Evaluation, Measurement, & Verification (EM&V) study annually
o On-going analysis of key projects (Senior Center)
o Track cost-effectiveness of existing programs
o Evaluate new programs and investments for both energy savings and cost
effectiveness
There was no public input.
Board discussion:
• Good job
• Programs have worked out well- get the low hanging fruit first as the going will get
harder
• Happy with Senior Center- good to hear the average resident savings is $40 per
month
• Are there other projects we could do like the Senior Center?
• Outstanding report- keep it going
5 Minutes: March 18, 2009
DISCUSSION 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.
Steve Hollabaugh gave a presentation:
• Background / History
o Truckee Donner PUD is in the Master Firm Power Project of UAMPS
o Pleasant Valley Wind Generation is part of this project contracted to UAMPS by
PPM
• New Information
o A draft Assignment and Assumption Agreement outlines the terms which Hildale
City will transfer 200 kw to Truckee Donner PUD
o Hildale City informed UAMPS of its intent to withdraw from all UAMPS Projects
o Hildale City is selling its utility
o Sale of Electric system will be complete by June 30, 2009
o Hildale City must liquidate all of its positions in UAMPS projects before withdrawal
o Truckee Donner will assume Hildale's entitlement share of the PPM transaction
(Pleasant Valley Wind Generation)
o Approximate cost of this generation is $56/MWh
There was no public input.
Board discussion:
• Why don't other UAMPS members file on this
• Why would a city sell its electric side
• What is the load factor on the wind project
• Why didn't Garkane Energy Cooperative want to keep the wind
CREATION OF JOINT POWERS AGENCY IN COOPERATION WITH UAMPS This item
involves the possible creation of a JPA, in cooperation with UAMPS.
Steve Hollabaugh gave a presentation:
• Background / History
o Truckee Donner PUD has an interest in the Nebo natural gas generation project
o If fuel cost can be lowered, the overall electric generation cost can be reduced
• Issuer for prepay bonds
o Sells bonds
o Proceeds used to make Prepayments in exchange for future gas supplies
o Sells gas to UAMPS: UAMPS takes responsibility for resale of gas, scheduling,
remarketing, tracking and accounting
o Assigns all rights to gas revenues to bond trustee to repay bondholders
• A California issuer has advantages
o Lower yield on the bonds due to higher state income taxes
o Broader market of sophisticated investors
o Secondary market transactions demonstrated up to 30 basis point benefit prior to
credit crisis
o Expected present value benefits can be in the range of$1.5-2.5 million
6 Minutes: March 18, 2009
• Proposed issuer is a new JPA
o California law requires JPA to be made up of public entities: Lassen MUD,
Truckee Donner PUD and UAMPS
o Each Participant would appoint one member to the JPA Board
o Board will authorize Gas Project and bond sale
o Prepay investors have recourse only to the gas revenues
o Board will authorize Gas Project and bond sale
o Additional UAMPS projects may be financed through separate Projects and
Indentures
o No ongoing involvement at JPA level: JPA assigns its rights and responsibilities
under the prepay agreement to UAMPS
o Annual JPA audit must be performed
There was no public input.
Board discussion:
• How close are we to setting up the JPA
• How much gas would we be buying
• Is there a risk to buying now and the price going down further
• Would we be pre-buying just our own gas for just our own use
• Will UAMPS do a presentation at a future meeting
DISCUSSION OF REVISIONS TO DISTRICT CODE, TITLE 8 PROPERTY This item
involves possible revisions to District Code, Title 8, Property.
Kathy Neus gave a presentation:
• Background / History
o Title 8 has not been reviewed in its entirety for many years
o Disposal of District Property— Revised August 2008
o Encroachment Policy—Added October 2008
• New Information / Major Changes
o Lease of District Land — Insurance requirements (Section 8.01.010)
o Placement of Wireless Communications — Requirements, insurance requirements
(Section 8.01.015)
o Abandonment or Relocation of unused Easements — Additional requirements
(Section 8.04.020)
o Grants of Easements of District Property— New (Section 8.04.030)
o Retention of Real Property Documents — New (Section 8.06.030)
o Disposal of Real Property— Section 8.20.020
• Approval of Sales of Real Property— New (Section 8.20.020.8)
• Exchange of Surplus Property— New (Section 8.20.020.9)
o Quit Claims — New (Section 8.20.020.10)
There was no public input.
Board discussion:
• Like that the Board needs to approve agreements
• Conditions for lease of District land- what about unacceptable level of liability
7 Minutes: March 18, 2009
• Development agreement acceptance- confused until realized the District accepts
improvements
TREASURER'S REPORT
Director Aguera moved, and Director Hillstrom seconded, that the Board approve the interim
treasurer's report and disbursements for the month ended February 28, 2009.
ROLL CALL: Director Bender and Sutton, absent; All other Directors, aye. SO MOVED.
CONSIDERATION OF MINUTES FOR FEBURARY 18 AND MARCH 4, 2009
Director Hillstrom moved, and Director Aguera seconded, that the Board approve the
minutes of February 18 and March 4, 2009.
ROLL CALL: Director Bender and Sutton, absent; All other Directors, aye. SO MOVED.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 8:30 PM.
TRUCKEE D NNER PU LIC UTILITY DISTRICT
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J o Hemig, President
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Prepared by C
Barbara C #hill, Deputy District Clerk
8 Minutes: March 18, 2009