HomeMy WebLinkAbout2009-10-21 Min - Board REGULAR MEETING
October 21, 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 6:02 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.
PLEDGE OF ALLEGIANCE
President Hemig led the Board and public in the Pledge of Allegiance.
EMPLOYEES PRESENT: Ed Taylor, Stephen Hollabaugh, Steven Poncelet, Neil Kaufman,
Bob Mescher, Kathy Neus, Mark Thomas, Michael Holley and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross
OTHERS PRESENT: Juanita Schneider, Dan Warren, Dan Wilkins, Becky Bucar, Wally
Auerbach, Lisa Doby, and one other member of the public.
CHANGES TO THE AGENDA
General Manager Holley asked item number 17 be pulled from the agenda: Closed Session
Government Code Section 54956.9 Subdivision (A), Existing Litigation: Claims of Pacific Rim
Construction Inc; and Advanced Asphalt and Teichert.
PUBLIC INPUT
Juanita Schneider asked if a customer will be able to look at their water consumption on-line
once a water meter is installed, similar to being able to check bank activity.
DIRECTOR UPDATE
Director Bender commented on the number of $100 and $30 rebate checks in the monthly
treasurer report on the disbursements register. He would like a workshop update on the
conservation rebates, how they are working and that the District is doing a good job. He also
mentioned an article he read in Public Power about co-generation and SMUD- sometimes it
works and sometimes it does not.
Director Hillstrom commented he likes the idea of co-generation when it works.
President Hemig reported that he attended the NCPA conference in September. Plus recently
NCPA held a Legislative Staff Tour and Policy Briefing in Tahoe where he spoke to the group
and felt the event went very well.
1 Minutes: October 21, 2009
ACTION ITEMS
SCHEDULE A PUBLIC HEARING TO TAKE PUBLIC COMMENT REGARDING A REVISION
TO THE SCHEDULE NM, NET METERING This item involves scheduling a public
hearing in regards to a revision to the Net Metering Schedule.
Director Hillstrom moved, and Director Bender seconded, that the Board schedule a public
hearing for December 2, 2009 to accept comments on changes to the Net Metering Ordinance.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
SCHEDULE A PUBLIC HEARING TO TAKE PUBLIC COMMENT REGARDING THE
ADOPTION OF THE 2010-2011 BUDGET This item involves scheduling a public hearing
in relation to the adoption of the 2010-2011
Director Bender moved, and Director Aguera seconded, that the Board schedule a public
hearing for November 4, 2009 for the purpose of receiving public comment regarding the
adoption of the FY10 — FY11 Budget.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF THE ADOPTION OF THE 2010 AND 2011 PURCHASE POWER AND
RESOURCE PLAN This item involves the updating and adopting the 2010 and 2011
Purchase Power and Resource Plan.
Director Hillstrom moved, and Director Bender seconded, that the Board adopt the 2010 and
2011 Purchase Power and Resource Plan.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
BUDGET PRESENTATIONS:
A. RESERVE FUNDS & REVENUES
B. OPERATING/CAPITAL BUDGET: ELECTRIC OPERATIONS
C. OPERATING/CAPITAL BUDGET: WATER OPERATIONS 2010 and 2011 Fiscal 2010
and 2011 Fiscal Year Operating and Capital Budget Preliminary Overview
Bob Mescher gave a presentation:
• Background / History
o July, 2008 — Board adopted Title 3 revision requiring a two-year budget
o July 1, 2009 — Staff began preparing FY10 and FY11 budgets
o September 2, 2009 — Purchase Power Plan presented
o September 16, 2009 — Mission statement, objectives & goals, and budget
assumptions were reviewed
o October 7, 2009 — Operating & capital budgets were presented for supporting
services: Board, General Management, Administrative Services, Public Information
& Conservation, Power Supply
o Earlier tonight - Revised Purchase Power Plan
■ 3% decrease in purchased power costs in FY10 versus FY09 budget
■ 4% increase in purchased power costs in FY11 versus FY10
• Other budget assumptions
o Labor rates flat in FY10 & increase 3% in FY11
2 Minutes: October 21, 2009
o Staffing level decreased by 4 full-time equivalents (FTE) through attrition
o Operational expenses will remain flat or will slightly increase, each category ranging
from 0% to 3%
o No new debt for Electric and Water
o Employee medical & retirement costs increase in FY10 & FY11
o Water conservation efforts increase significantly in FY11
• Electric Utility revenue requirements
o FY10 — Decrease in budgeted demand, no need to change rates
■ FY11 — Increase in budgeted demand, estimated 3% revenue increase needed
■ Recommend a rate study in early FY10
o Electric Utility- operating
o FY10 — Decrease in budgeted operating expenses & capital expenditures
o FY11 — Increase in budgeted operating expenses, decrease in capital expenditures
• Water Utility revenue requirements
o HDR cost of service study
o Increases 1.75% in FY10 and FY11
o Rate adoption in process
• Water Utility operating expenses
o FY10 — Increase in budgeted operating expenses, decrease in capital expenditures
o FY11 — Increase in budgeted operating expenses, decrease in capital expenditures
■ 2006 COP pipeline replacement ends
• Electric Department
o Electric Operations
■ Two less FTE's due to unfilled FY09 budgeted positions
■ Medical & retirement costs increase in FY10 and FY11
■ No other significant changes in year-to year expenses
■ Focus will increase on system maintenance; new construction has slowed
o Electric Operations- Budget comparison (in thousands)
Budget %.Variance
FY09 FY10 FY11 FY10 vs FY11 vs
FY09 FY10
Operations/PM Sup & Eng $ 563 $ 699 $ 732 24% 5%
Substation Operations/PM 152 164 171 8% 4%
Distribution Operations/PM 920 1,042 1,061 13% 2%
Meter Operations/PM 72 43 45 -40% 5%
Customer Installation Operations/PM 218 150 157 -31% 5%
Misc General Operations/PM 411 380 391 -8% 3%
Maintenance of Station Equipment 19 24 25 26% 4%
Maintenance of Distribution Lines 388 371 390 4% 5%
Other Maintenance 26 26 27 0% 4%
Safety 214 212 221 -1% 4%
Other Operational Expenses 44 9 10 -80% 11%
Total Operating Costs $3,027 $3,120 $39230 3% 4%
Capital Expenditures $1,938 $1,540 $1,430 -21% -7%
Total Expenditures $4,965 $4,660 $4,660 -6% -0%
3 Minutes: October 21, 2009
o Electric Capital Projects and Equipment (In thousands)
FY10 FY11
Rates
Tahoe Donner Substation Upgrade $ 520 $ -0-
Line & Extension Upgrades 260 270
Routine - Poles, Reclosures, Regulators, Transf, Meters 230 230
Distribution Replacements & Improvements 160 610
Total Rate Funded Projects $1,170 $1,110
Facilities Fees
Truckee Circuit#5 Rebuild $ 150 $-0-
Donner Lake Underground on Skislope 110 -0-
Christie Lane Rebuild 110 -0-
Tahoe Donner#3 Three Phase -0- 170
Tahoe Donner#2 Reconductor -0- 150
Total Facilities Fees Funded Projects $ 370 $ 320
Total Electric Projects $1,540 $1,430
• Water Department
o Water Operations
■ One less FTE through attrition beginning FY10
■ Medical & retirement cost increase in FY10 and FY11
■ Less purchased power as efficiency increases and pipelines replaced
■ Placer County contract ends in FY09
■ Continuing focus on installing new residential meters
o Water Operations - Budget comparison (in thousands)
Budget % Variance
FY09 FY10 FY11 FY10 vs FY11 vs FY10
FY09
Operations/PM Sup & Eng $ 187 $ 58 $ 61 -69% 5%
Construction Engineering 37 53 57 43% 8%
Facilities Operations 526 576 611 10% 6%
Power Supply 17653 1,575 1,602 -5% 2%
Distribution Operations/PM 423 482 518 14% 5%
Miscellaneous General Operations/PM 247 264 308 7% 17%
Maintenance of Op Supry & Eng 145 94 79 -35% -16%
Maintenance of Facilities 546 570 632 4% 11%
Maintenance of Distribution Lines 559 583 604 4% 11%
Maintenance of District Office Building 390 401 418 3% 4%
Other Maintenance 83 15 15 -82% 0%
Safety 108 121 127 12% 5%
Interdepartmental Rent 349 345 356 -1% 3%
Total Operating Costs $5,253 $5,137 $5,388 -2% 5%
Capital Expenditures $8,581 $5,610 $2,530 -35% -55%
Total Expenditures $13,834 $109747 $7,918 -22% -26%
4 Minutes: October 21, 2009
o Water Capital Projects and Equipment (in thousands)
FY10 FY11
Rates
Northside Well $ 190 $ -0-
Pipeline Replacement -0- 230
Total Rate Funded Projects $ 190 $ 230
Facilities Fees
SCADA $ 970 $210
Emergency Power, Well 210 -0-
Stockholm Pump Station 110 -0-
Groundwater Study 150 -0-
Ponderosa Palisades Hydro Upgrade -0- 410
Total Facilities Fees Funded Projects $1,440 $ 620
District Pipeline Replacement Funded by 2006 COP $19610 $ 90
Water Meters Funded by the Water Meter Reserve $2,020 $1,250
New Vehicles funded from the Vehicle Reserve $ 350 $ 340
Total Water Projects $1,540 $1,430
• Revenue requirements (in thousands)
FY10 Budget- Draft FY11 Budget- Draft
Electric Water Total Electric Water Total
Revenue $22,940 $11,190 $34,130 $23,920 $11,370 $35,290
Expenses 18,230 7,010 25,240 18,900 7,370 26,270
Net Income $ 4,710 $ 4,180 $ 8,890 $ 5,020 $ 4,000 $ 9,020
Plus:
From Funds $ 1,100 $ 7,060 $ 8,160 $ 700 $ 3,870 $ 4,570
Less:
Debt Service 3,500 3,340 6,840 3,450 3,310 6,760
Capital Projects 1,720 5,660 7,380 1,660 2,590 4,250
To Reserves 590 2,240 2,830 610 1,970 2,580
Surplus (Deficit) $ -0- $ -0- $ -0- $ -0- $ -0- $ -0-
• Electric Department Projected Reserve Balances (in thousands)
FY09 FY10 FY11 FY11 Goal Variance
Yr End Budget Budget Yr End
(est) Activity Activity
Operating Cash Reserve $4,600 $ -0- $ -0- $4,600 $7,000 $(2,400)
Rate Reserve 1,943 414 433 2,790 3,000 210
Total Operating Reserves $69543 $ 414 $ 433 $7,390 $10,000 $(29610)
Capital Replacement Fund $ 238 $ -0- $ -0- $ 238 $1,000 $ (762)
Vehicle Replacement 161 30 30 161 -0- 161
Total Capital Reserves $ 399 $ (30) $ 30 $ 399 $1,000 $ (601)
Total Reserves $6,942 $ 384 $ 463 $7,789 $119000 $(31211)
5 Minutes: October 21, 2009
Water Department Projected Reserve Balances (in thousands)
FY09 FY10 FY11 FY11 Goal Variance
Yr End Budget Budget Yr End
(est) Activity Activity
Operating Cash Reserve $ 640 $ -0- $ -0- $ 640 $2,700 $(2,060)
Debt Service Coverage 1,336 593 603 2,532 -0- 2,532
Total Operating Reserves $1,976 $ 593 $ 603 $37172 $2,700 $ 472
Capital Replacement Fund $4,221 $ 198 $ 201 $ 4,620 $4,000 $ 620
Res: Future Water Meters 730 (728) (2) -0- -0- -0-
Vehicle Replacement 140 16 59 65 -0- 65
Total Capital Reserves $5,091 $ (546) $ 140 $4,685 $49000 $ 685
Total Reserves $79067 $ 47 $ 743 $7,857 $6,700 $1,157
• Next steps
o November 4, 2009
■ Present entire draft budget
■ Present Financial Master Plan
■ Hold Public Hearing
• November 18, 2009
o Consider the adoption of the FY10 — FY11:
■ Budget
■ Water rates
■ Overhead rates
There was no public input.
Board discussion:
• Interested in all employees, job descriptions and wages
• Will the District's fiber assets provide additional revenue sources
• Since there may be no growth for some time, the facilities fees should suffer
• Article in San Francisco Chronicle about smart meters
• For water there is a larger drop in energy by reducing consumption and fixing leaks
• Is there going to be money in the budget for the Glenshire arsenic problem
• Each year, I think about when the District will be rid of the Idacorp debt/COP, how that
will work once it is paid in 2013 and we do not have an annual payment of $3M. I want
to layout the groundwork now. Should we not raise electric rates in 2011, put the money
into the rate stabilization fund, or maybe not put the $433K into reserves in 2011 (or is
that a calculated risk and against District policy). I would rather see rates flattened out.
• Is there a difference on how the District uses operating reserves- does it take Board
approval to use the reserve funds
• What is the difference between operating cash and debt service reserves
• Why does FY10 have such a large negative for the Future Water Meter Reserve
Will conservation be able to spend all the funds budgeted for year 2009 set at $1.3M
• Why is the provision for bad debt going down from $27K in 2009 to $20K in 2010
• Surprised how easy the Board has been on staff- passive- need to be interactive
6 Minutes: October 21, 2009
WORKSHOP
DISCUSSION REGARDING TRUCKEE TAHOE COMMUNITY FOUNDATION "SPEAK
YOUR PEACE" This item involves the Truckee Tahoe Community Foundation "
THE CIVILITY PROJECT"
Counsel Gross wanted the Directors to be aware that he serves on the Board of Tahoe
Truckee Community Foundation.
Steven Poncelet gave a presentation:
• Background / History
o Town of Truckee has a rich history: collaboration and conflict
o Speak Your Peace Civility Project: created and promoted by Truckee Tahoe
Community Foundation (TTCF) for the purpose of project is to improve communica-
tions
o TTCF is asking local agencies to adopt a Resolution adopting the principals of the
Speak Your Peace Civility Project
Truckee Tahoe Community Foundation presentation by Lisa Doby:
• Goal: residents of Tahoe Truckee to communicate in a more respectful & effective way.
o This is a campaign to improve public discourse by simply reminding ourselves of the
very basic principles of respect and not a campaign to end disagreements
.. • Key Strategies:
o Support from all public bodies in the community
o Buy in from a critical mass of individuals
o We are not just targeting those who are uncivil, but those who allow uncivilized
behavior to happen
• Support the 9 Tools for Practicing Civility
o Pay Attention: only after we notice the world, can we begin to care for it
o Listen: much of the conflict in our lives can be explained by one simple but unhappy
fact: we don't really listen to each other
o Be Inclusive: welcome all groups of citizens working for the greater good of the
community
o Don't Gossip: don't discount the power of your words; speaking with consideration
and kindness is at the heart of civil behavior
o Show Respect: disagree without being disagreeable; respect includes recognizing
that others are entitled to look at the world differently
o Be Agreeable: two key ingredients for being agreeable in conversation: ability to
consider that you might be wrong; ability to admit that you don't know
o Apologize: be sincere and repair damaged relationships; simple, decent words, that
soothe the bruised soul: "Pm sorry"
o Give Constructive Criticism: make sure your intention is to help with a problem, not
to humiliate
o Take Responsibility: don't try to shift blame onto others
o Choose Civility
■ It is quite possible to be true to one's beliefs and be civil at the same time
■ The issue is not whether to stand firm or to compromise, but how to express our
firmness
7 Minutes: October 21, 2009
• Spread the word with two key strategies:
o Encourage our local public and private entities to adopt these nine norms of civility
o Encourage general population to live by these norms, particularly in public sphere
• How you can help:
o Sign the pledge — add your name
o Encourage workplace, public organization, non-profit, etc. to adopt these norms.
o Spread the word to your friends, co-workers, etc
• "We never touch people so lightly that we do not leave a trace."
Public input:
• In full agreement and want to see the PUD Board take action
Board discussion:
• Where did Truckee Tahoe Community Foundation get the rules
• Believe in the golden rule- apply to anybody anywhere
• District Board does a pretty good job with these already
• Rules may be intimidating for adults and could dampen what they are trying to do at a
meeting
• People should have the opportunity to address public and express their opinion- rules
could detract from the spirit of free speech and democracy
• Need new thinking
• Not in favor of this
• Feel none of the rules are constraining
• It is a matter of manners- guidelines to follow
• Have not seen the Board or public violate since I have been here- am behind this
• Can see where the need comes from- community at large
• Well received and believe in the principles
• Agree to direct staff to prepare a resolution to adopt the "9 Tools for Practicing Civility"
DISCUSSION REGARDING THE BROCKWAY TRAIL ALIGNMENT This item involves a
proposed trail alignment across District Property located on Brockway Road.
Kathy Neus gave a presentation:
• Background / History
o Town of Truckee is responsible for building multi-use trails throughout Truckee
o Portion of Brockway Road Trail is already completed
o Potential trail has been identified: alignment crosses District property
o Description of Trail section: class 1 bike path; paved 10-foot wide trail surface with
2-foot gravel shoulders
• New Information
o Town of Truckee approached the District
o Potential trail crosses District parcels APN 19-450-14 and 19-450-54
o Potential trail connects Regional Park to the Rock Commercial Complex
o Town completed an environmental baseline study of wetland, threatened and
endangered species, and cultural resources; and has a preliminary design
• Next Steps
o Town to prepare a CEQA Mitigated Negative Declaration (MND)
o Once MND is complete, Town intends to return to TDPUD Board
8 Minutes: October 21, 2009
■ Provide conceptual plan for a wetlands mitigation project on the TDPUD property
(exact location pending)
■ Request a right of entry/easement to construct and maintain the trail and the
proposed wetlands
■ Estimated timeline: 6-9 months
• Fiscal Impact
o District will have no fiscal impact associated with this item
o Town of Truckee responsible for all project construction and costs, maintenance
costs and liability for this project
Public input:
• Path would encourage good environmental behavior by reducing vehicle transportation-
conservation and reduction of fuel use
• Provides key infrastructure component
• Agree for the Town to do this as long as it does not infringe on PUD property
Board discussion:
• Not sure how the project got this far- isn't it beyond what we were thinking about
• Has the PUD had any input
• Is there any special easement needed for the wetland
• The three phases do not seem to take very long
• Where is the trail located along the PUD property
• What is the estimated cost of the whole project- not just the PUD area
• Isn't there a drop off right on the road
• How much of the project relates to the ice rink area
• Is the Truckee Donner Rec & Park involved
• There has been controversy about the dollars for bike trails
• People have been waiting for this connection; people walk along Brockway and this is a
safety hazard
• Is there potential for value of the District property, even though part of it is wetlands
• Do not want to have a conservation easement- whoever has the conservation easement
must maintain the wetlands; the PUD should be the custodian of our own land
• Have a pretty good idea of the price of the land now; the PUD has participated in
projects like this in other areas
• Go on to next step as long as questions are answered
• Is this part of the Legacy Trail
DISCUSSION OF ARSENIC LEVELS AT GLENSHIRE DRIVE WELL
This item involves a discussion about the Tier 2 MCL Violation at Glenshire Drive Well,
public notification, and what's being done to solve the problem.
Ed Taylor gave a presentation:
• Background / History
o USEPA changed the arsenic standard from 50 ppb to 10 ppb in 2006
o Glenshire Drive Well has been in compliance since construction
o Dec. 2008 Glenshire Drive Well was sampled for arsenic with a result of 13 ppb
o Department of Public Health required quarterly arsenic sampling/analysis
9 Minutes: October 21, 2009
o Glenshire Drive sampling was completed in October with a 12.1 ppb average of the
last four quarters
0 12.1 ppb is a MCL Tier 2 violation which requires TDPUD to notify all customers
o The system average was 6.5 ppb during the last 12 months,
• New Information & Next Steps
o Tier 2 violation notification letter has been completed and approved by the California
Department of Public Health and will be sent to all customers next week
o Post on website— letter and links to arsenic related sites
o Options for abating arsenic levels in the Glenshire well
■ Well modifications— physical & operational
■ Blending with other wells
■ Treatment at the well
■ Abandon and drill new well
■ Increased monitoring
• Fiscal impact associated with this workshop item
o Piping modifications - $5,000
o Increased in monitoring - $10,000
There was no public input.
Board discussion:
• Keep going and update us
• Are there other wells with similar problems
• When water is blended, what is the source and is the blending working
• Is there a well with an arsenic treatment vessel
• This is really a harmless level to the rate payer, but we have to send out the notice
• We are doing better than providing just adequate water
• We should step up the monitoring even though the state requires quarterly
• What is the standard gallons per minute from the Glenshire Drive Well
• Is the Glenshire Drive well off line
• Wasn't it about two years ago that the Federal Government changed the arsenic level
from 50 ppb to 10 ppb
ROUTINE BUSINESS
TREASURER'S REPORT: SEPTEMBER 2009
Approval of the report: Director Aguera moved, and Director Sutton seconded, that the Board
approve the treasurer's report for the month ended September 30, 2009.
ROLL CALL: All Directors, aye. SO MOVED.
Approval of disbursements: Director Aguera moved, and Director Bender seconded, that the
Board approve the September 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.
1000,
10 Minutes: October 21, 2009
APPROVAL OF MINUTES : SEPTEMBER 10 AND 16, AND OCTOBER 7, 2009
Director Hillstrom moved, and Director Bender seconded, that the Board approve the minutes
of September 10 and 16, and October 7, 2009. ROLL CALL: All Directors, aye. SO MOVED
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
No reportable action.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 9:30 PM.
TRUCKEE DO R PUBLIC TILITY DISTRICT
J. emig, President
Prepared by
Barbara Cahill, Deputy District Clerk
11 Minutes: October 21, 2009