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HomeMy WebLinkAbout2009-09-16 Min - Board REGULAR MEETING September 16, 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 PRENT: Kathy Neus, Mary Chapman, Stephen Hollabaugh, Steven Poncelet, Jim Wilson and Barbara Cahill CONSULTANTS PRESENT: Steve Gross and Shawn Koorn OTHERS PRESENT: Juanita Schneider CHANGES TO THE AGENDA Assistant General Manager Hollabaugh asked to remove both Closed Session items. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Directors Hillstrom, Bender and Hemig stated they would be attending the annual NCPA meeting next week in Berkeley. ACTION ITEMS CONSIDERATION OF THE WATER RATE STUDY REPORT AND PROPOSED WATER RATES a. Adoption of the Final Water Rate Study Report. b. Consideration of the proposed water rates. Director Bender moved, and Director Hillstrom seconded, that the Board adopt the Water Rate Study Report; and approve the proposed draft ordinance setting water rates for fiscal years 2010 and 2011. ROLL CALL: All Directors aye, by voice vote. SO MOVED SET A PUBLIC HEARING DATE REGARDING ESTABLISHMENT OF NEW WATER RATES This item involves setting a public hearing date and following the Proposi- tion 218 process. Director Hillstrom moved, and Director Bender seconded, that the Board schedule a public hearing for November 18, 2009 for the purpose of receiving input regarding the proposed water rates.. ROLL CALL: All Directors aye, by voice vote. SO MOVED 1 Minutes: Sept. 16, 2009 CONSIDERATION OF AN AWARD OF A CONTRACT FOR THE CONSTRUCTION OF WATER PIPELINE AND ELECTRICAL CONDUIT ON SKISLOPE WAY This item involves award of a contract for the completion of work on Skislope Way. Director Bender moved, and Director Aguera seconded, that the Board: • Approve Resolution 2009-XX, directing that competitive bidding be dispensed with in connection with the construction work on Skislope Way • Award a contract for construction to AM-X Construction and Excavation in the of $129,214.80, plus a 10% change order allowance not to exceed $12,921.48 for a total not to exceed $142,136.28 • Authorize the transfer of up to $79,111.89 from COP funds to the Water Department General Fund and up to $11,409.97 from the Water Department Facility Fees to the Water Department General Fund for the pipeline construction in the contract; and authorize the transfer of up to $51,614.42 from the Electric Facilities Fund to the Wa- ter Department General Fund for the electrical conduit construction in the contract. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF A CONTRACT WITH SOUTHWEST GAS This involves a contract with Southwest Gas to provide service to the District headquarters. Director Bender moved, and Director Aguera seconded, that the Board approve the contract with Southwest Gas Corporation to provide natural gas service to the District's Office complex. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF AWARDING A CONTRACT FOR PROPANE TO NATURAL GAS CONVERSION This item involves award of a contract to convert the District Headquarters to natural gas. Director Bender moved, and Director Sutton seconded, that the Board award the contract for the natural gas conversion to B&B Plumbing of Truckee in the amount of $24,769.00 plus a 10% change order authority for a total amount not to exceed $27,245.90. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF SETTING THE SOLAR REBATE FOR THE REMAINING YEARS OF THE SB1 PROGRAM This item involves a review of the SB1 Solar Program Re- bate Amounts. Director Hillstrom moved, and Director Aguera seconded, that the Board decrease the 2010 rebate dollars by 10% for 2011 and to reduce succeeding year's rate by 10% each year until the program ends in 2017, according the following schedule: • 2011 $3.65 per watt installed • 2012 $3.28 is • 2013 $2.95 " • 2014 $2.66 As • 2015 $2.39 It • 2016 $2.15 is • 2017 $1.94 Is ROLL CALL: All Directors aye, by voice vote. SO MOVED 2 Minutes: Sept. 16, 2009 REJECT ALL BIDS PERTAINING TO THE DONNER LAKE CIRCUIT NO. 3 UNDER- GROUND FEEDER PROJECT This item concerns the possible rejection of all construction bids for the Donner Lake Circuit No. 3 Underground Feeder Project. Director Hillstrom moved, and Director Aguera seconded, that the Board reject all bids for the Donner Lake Circuit No. 3 Underground Feeder Project as not being in the best interests of the District. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF A CHANGE ORDER FOR THE TREE TRIMMING CONTRACT Consideration of a Change Order for the Tree Trimming Contract Director Hillstrom moved, and Director Bender seconded, that the Board authorize Contract Change Order No. 1 in the amount of $20,000 increasing the total Tree Trimming contract amount from $192,000 to $212,000. ROLL CALL: All Directors aye, by voice vote. SO MOVED BUDGET DISCUSSION OF FY10 & FY11 BUDGET: OBJECTIVES, GOALS, ASSUMPTIONS, LABOR, AND EXISTING DEBT This item continues the process for preparation of the FY10 & FY11 Budget. Mary Chapman gave a presentation: • FY09 Approved Budget Highlights (in millions of dollars) Electric Water Total District Operating Rev & investment earnings $23.8 $10.7 $34.5 Transfers from Other Funds 1.1 10.0 11.1 Total Source of Funds $24.9 $20.7 $45.6 Operating Expenses $18.7 $ 6.9 $25.6 Debt Service 3.5 3.5 7.0 Transfers to Reserves 0.6 1.7 2.3 Capital Projects 2.1 8.6 10.7 Total Use of Funds $24.9 $20.7 $45.6 Full Time Equivalent 38 33 71 • FY09 Electric Budget Categories — Paid by Rates Purchased Power 49%, Labor 19%, Debt 16%, Supplies/Materials/Outside Svcs 8%, Conservation/Public Benefits 5% and Reserves 3% • FY09 Water Budget Categories — Paid by Rates Labor 35%, Electric Power 16%, Debt 18%, Supplies/Materials/Outside Svcs 16%, Meters 7% and Reserves 8% • Objectives and Goals o Actively seek renewable energy sources as set forth in the Renewable Portfolio o Provide reliable and high quality water and electrical power service . o Manage District resources in an open, responsible, environmentally sound man- ner at the lowest practical cost 3 Minutes: Sept. 16, 2009 • Title 1 Mission, Objectives & Goals- proposed New Goal: "Provide key leadership in the stewardship of the District's aquifer, watershed, and natural infrastructure." • New Information o Labor rates: ■ Estimated to be flat in FY10 ■ Estimated increase of 3% in FY11 ■ Labor negotiations are in process ■ Full-time equivalents (FTE) reduced by 4 through attrition ■ 3 in Electric Department ■ 1 in Water Department ■ Fiber assets will provide new revenue source o Most operational expenses flat or slightly increased 0% - 3% o No new debt o Current Electric Department Debt ■ 12/31/2009 principal balance will be $12.4 million ■ Annual principal and interest payments are $3.5 million ■ Last payment of the 2003 COPs is due January 1, 2013 ■ Payment source is from rates ■ No new debt planned for FY10 & FY11 o Current Water Department Debt ■ 12/31/2009 principal balance will be $40.1 million ■ Annual principal and interest payments are: ■ $3.3 million through 2017 ■ Decreasing in subsequent years ■ Last payment is due 2036 ■ Payment sources: 54% rates, 15% facilities fees, 31% assessments & sur- charges ■ No new debt planned for FY10 & FY11 • Budget workshop is part of the overall budget process that will affect the District's spending for the next two fiscal years There was no public input. Board discussion: • Could you explain the meaning of"stewardship" in the proposed goal • This is a good start toward the rest of the budget workshops • Is there a reason why the staff wants to leave out the word "adequate" in the Mission Statement • Like no new debt for 2010 and 2011 • What kind of debt do other districts have compared to ours • The Board made a decision to do a COP to get ahead of the operations and main- tenance issues, and begin pipeline replacement • Even though the debt is higher on the water side, the pipelines have a long life and therefore the cost can be spread over 75 years - rate payers share the cost over time • Appreciate the District staying lean and mean- keeping the number of employees down to 67 • How many of the four vacancies are already in 2009 4 Minutes: Sept. 16, 2009 WORKSHOP DISCUSSION ON DISTRICT STREET LIGHTS Discuss District Street and Security Light Service as applied in District Code 7.52 Steve Hollabaugh gave a presentation: • Background / History o A workshop was held at the August 19, 2009 Board meeting o District has had street and security lights within the District for a long time o Street and security lights are billed and viewed the same o Street lights are normally installed along streets o Security lights are normally installed on private and commercial property o District Code Title 7, Chapter 7.52 (Street and Security Lights Service) was ap- proved by the Board in November 2008 o Chapter 7.52.020.1 (B) excerpt: The District intends to research and locate cus- tomers of record for each street light and assign appropriate billing. If there is no corresponding customer or owner of record, the street light may be removed. o The District has been reviewing all opportunities to maximize efficiency and re- duce cost to our customers • The un-owned streetlights are costly to our customers due to the unfunded energy usage • Annual operating costs is between $15,000 to $30,000 per year • New Information �. o Board inquired about forming a Street Lighting Assessment District and program status o The District has removed 34 un-billed streetlights to date for a total of 5,100 watts o Staff has estimated the cost of formulating a Street Lighting Assessment District o Assessment District Formation Costs: (estimate) LAFCO Fees $ 25,000 Engineering study 125,000 Mapping facilities 25,000 Legal Costs 50,000 Capital Cost of 500 new installations 1,500,000 Contingency 25% 431,250 Sub total $2,156,250 o Annual Operating Costs: (FY 09 dollars) Energy costs (for 500 efficient installations) $27,000 Operation costs — annual maintenance 30,000 Administrative costs 25,000 Contingency 25% 20,500 Sub total $102,500 First year Grand Total $2,258,750 o Assumptions: $2,200,000 financed, 10 years, 6% interest,13,086 customers o Annual payments equal $299,000 per year or$22.84/year/customer o The Board also requested staff begin to develop a public outreach plan to gauge , ., customer interest in the District forming a street lighting assessment district o Outreach plan would likely include: ■ Budget for developing and implementing the outreach plan 5 Minutes: Sept. 16, 2009 ■ Approximately 60 to 80 hours of staff time - ■ Developing a web-based survey ■ Extensive outreach and advertising Public input: • 1 pay more than $22/year for my security light on the garage • Email received prior to Board meeting, read by President Hemig: I believe that the TDPUD should not be engaged as the lead agency on street lighting. For the safety aspect this is a responsibility of the Truckee Police Depart- ment and the Town of Truckee. Individuals may have their own lights depending upon what they think their needs might be but lights should not be forced upon those who do not want them. All lights that are currently used or for future use should be of a Dark Sky compliant construction. I also have concerns with a lighting district would effectively ruin our night sky. One of the truly wonderful aspects of living in a small, high altitude town is the ability of seeing the numerous starts and even the Milky Way at night. This is a unique fea- ture that very few humans on our planet can experience and every light that is turned on at night reduces our ability to see our night sky. Please refer to http://www.darksky.org/for more information on how important our night Sky is. The last issue is that of money. This is a large financial burden that many of our full time residents cannot shoulder nor should they be forced to. A quick look into our local paper will show that the number of foreclosures far out paces the number of available jobs. Financially this would be wrong for a great number of people. 2.2 mil- lion dollars in the first year is an amount even those with strong stomachs would have a hard time swallowing. I urge you as directors to terminate this project. Board discussion: • At the last meeting, Board asked staff to develop a customer cost • Do we want to go forward with a street lighting assessment district • Not in favor of a lighting district and do not move forward with a survey • If people want security lights, there is already a program in place • Staff is doing a good job removing the unpaid street lights • Current process Is great and do not want a lighting district • Is the Town of Truckee willing to take over some street lights • How did staff come up with 500 new street lights • Would like to see staff evaluate street lights lit by solar power- also look into pumping water with solar power • Would not vote for a street lighting district unless there was a lot of support in Town • What about only placing street lights at major areas and roads into subdivisions • The question is: "Does the District want to pursue a formal street lighting district and put more Board and staff time into this" • Maybe conservation can look into alternative lighting • No, I do not want to move forward with a street lighting assessment district • From the District and Board point of view, no more resources should be spent on a street lighting district, but staff can work on other alternatives • Maybe encourage the Town of Truckee to look into lighting 6 Minutes: Sept. 16, 2009 REVIEW OF THE DISTRICT MISSION STATEMENT This item involves the review of the District Mission Statement. Steven Poncelet gave a presentation: • Background / History o Title 1, General Provisions, Chapter 1.05 contains the District's Mission Statement o March of 2008 was the last update o Previously modified March of 2007 o Original document adopted July of 2006 o August 19th Board workshop on District Mission Statement o Staff directed to produce a draft revision • The current Mission Statement (1.05.010) of the District is: "The Mission of Truckee Donner Public Utility District is to provide adequate, reliable and high quality water and electrical power services, and to manage District re- sources in an open, responsible, environmentally sound manner at the lowest prac- tical cost. In pursuing this Mission, the District will aggressively pursue renewable energy sources as set forth in its Renewable Portfolio Standard (Chapter 7, Electric)." • The new draft Mission Statement of the District is: "The Mission of Truckee Donner Public Utility District is to provide reliable, high quali- ty water and electrical power services while meeting customer demand, and to man- age District resources in a safe, open, responsible, and environmentally sound man- ner at the lowest practical cost." There was no public input. Board discussion: • Not a significant change-just some word-smithing • Shorter Mission Statement is better • Good to get rid of the RPS statement- too specific for a Mission Statement • Also like word "adequate" substituted with "meet customer demand" • To point out the reason for word adequate: in the past, the District has had problems with water pressure where it was not adequate • Feel word adequate is important to the Mission Statement- as much as words reliable and high quality • The definition of adequate means barely sufficient- contradicts words high quality • In the Mission Statement, the word adequate makes the District sound mediocre • Like the wording meet customer demand • Doesn't state law require the District to deliver water and electric- wanted to show the District was interested in adequately covering demands • Adequate could mean mediocre- want to say we are better than that • Also good to use the word safe • RPS is really a subset to the Mission Statement • Good to have it cleaned up- more positive • Leave out adequate- does not bring a high standard- does not mean high quality • Want a strong Mission Statement • Bring back as a formal action item later as is now re-written • Will go along with phrase "meeting customer demand" 7 Minutes: Sept. 16, 2009 ROUTINE BUSINESS TREASURER'S REPORT: AUGUST 2009 Approval of the report: Director Aguera moved, and Director Bender seconded, that the Board approve the treasurer's report for the month ended August 31, 2009. ROLL CALL: All Directors, aye. SO MOVED. Approval of disbursements: Director Hillstrom moved, and Director Aguera seconded, that the Board approve the August 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. APPROVAL OF MINUTES : AUGUST 19 AND SEPTEMBER 2, 2009 Director Bender moved, and Director Aguera seconded, that the Board approve the minutes of August 19 and September 2, 2009. ROLL CALL: All Directors, aye. SO MOVED CLOSED SESSION- Items were removed from the agenda. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9, SUBDIVISION (A), EXISTING LITIGATION: CLAIMS OF PACIFIC RIM CONSTRUCTION, INC.; ADVANCED ASPHALT; AND TEICHERT CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957, PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GENERAL MANAGER Report from closed session ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 8:12 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT J. o emig, P esident Prepared by ; 0/dau-t Barbara C h'ill, Deputy District Clerk 8 Minutes: Sept. 16, 2009