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HomeMy WebLinkAbout2013-08-21 Min - Board f _ REGULAR MEETING August 21, 2013 In accordance with District Code Section 2.08.010, the TDPUD minutes are action only minutes. All Board meetings are recorded on a digital format which is preserved in perpetuity 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 Bender. ROLL CALL: Directors Joe Aguera, Jeff Bender, Bob Ellis, Ron Hemig, and Tony Laliotis were present. PLEDGE OF ALLEGIANCE Director Laliotis led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT Stephen Hollabaugh, Bob Mescher, Neil Kaufman, Trisha Ruby, Sanna Schlosser, Brian Wright, Michael Holley and Barbara Cahill. CONSULTANTS PRESENT Steve Gross. OTHERS PRESENT There was no public present. CHANGES TO THE AGENDA General Manager Holley stated there were no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Hemig stated that he was unable to go to the UAMPS conference, but did attend the meet and greet. Some of the PUD staff and directors were there at the conference. Director Laliotis thanked the District for sponsoring the UAMPS conference. He learned quite a bit about UAMPS and the services they provide to the District, about the resources and how we work with UAMPS. It just reinforced to him how important an organization they are to our overall success at the District. He was very impressed with them, met a lot of member utilities, and good people. Good time. Director Ellis went to most of the UAMPS seminars and programs. It was very educational. He met a lot of people from different locals around the west coast. I thought it was very good, and the District can continue working with UAMPS. Director Aguera missed the UAMPS conference. But his health is improving. 1 Minutes: August 21, 2013 Director Bender attended the UAMPS conference on Sunday and Tuesday. He learned quite a bit. They do a lot for the District. It was a good conference. CONSENT CALENDAR CONSIDERATION OF A CONTRACT WITH HDR, INC. TO REVIEW AND UPDATE THE DISTRICT'S WATER RATE STUDY This item involves contracting with HDR, Inc. to review and update the District's water rate study. - CONSIDERATION OF A CHANGE ORDER FOR TRANSFORMER PURCHASES This item concerns an increase in the approved Annual Contract for the blanket transformer purchase contracts. CONSIDERATION OF A CHANGE ORDER TO THE FIBREBOARD WELL MAINTENANCE 2013 CONTRACT This item involves a Change Order to the Fibreboard Well Maintenance 2013 Contract. CONSIDERATION OF AN ADJUSTMENT TO THE CHANGE ORDER ALLOWANCE FOR THE DISTRICT PIPELINE REPLACEMENT - 2013 PROJECT This item involves adjust- ment of the Change Order allowance for the District Pipeline Replacement — 2013 Project. CONSIDERATION TO AUTHORIZE SOLE-SOURCE PURCHASE OF WATER METERS AND METER TRANSMITTER UNITS This item involves Sole-Source purchase of Water Meters and Meter Transmitter Units. CONSIDERATION TO AUTHORIZE THE PURCHASE OF ELECTRIC METERS AND A HANDHELD READER FROM A SOLE SOURCE VENDOR This item involves a Sole-Source purchase of Electric Meters and a Handheld Reader. Director Laliotis moved, and Director Ellis seconded, that the Board approve the consent cal- endar. ROLL CALL: All Directors aye, by voice vote. SO MOVED ACTION ITEM CONSIDERATION OF THE AWARD OF A CONTRACT FOR PHASE 3 OF THE ELECTRIC SCADA RELIABILITY IMPROVEMENT PROJECT This item concerns the possible award of a contract for the third phase of the SCADA Reliability Improvement Project. Director Ellis moved, and Director Hemig seconded, that the Board: • Declare Golden State Utility Co. as non-responsive • Find missing key personnel certificate from Curtis & Sons Construction, Inc. and the late submittal of the personnel certificate as a minor irregularity that is waived from its bid requirement 2 Minutes: August 21, 2013 • Award the SCADA Reliability Improvement Project — Phase 3 to Curtis and Sons Construction, Inc. in the amount of $328,041 plus a 10% change order allowance for an amount not to exceed $360,845 • Authorize the transfer of funds from the Water Capital Reserve Fund to the Water Operating Fund in the amount not to exceed $180,422 ROLL CALL: All Directors aye, by voice vote. SO MOVED WORKSHOP REVIEW OF DISTRICT FINANCIAL GOALS, RESERVES AND DEBT; AND BUDGET PROCESS OVERVIEW THIS ITEM INVOLVES REVIEW OF DISTRICT FINANCIAL GOALS, RESERVES AND DEBT; AND AN OVERVIEW OF THE BUDGET PROCESS. Robert Mescher gave a presentation: • In 2004, the Board adopted a set of financial goals. The Board acknowledged that it would take time to achieve some of the debt and reserve goals o Planning o Revenue o Debt o Reserves • Financial goals were last reviewed on August 1, 2012 • Electric Debt o 2003 COP ended January 1, 2013; $3.4 million debt service o $7.2 million Pension Obligation; $830,000 annual debt service • Water Debt o $22.3 million 2006 COP; $1.9 million annual debt service o $ 9.2 million SRF; $0.8 million annual debt service o $ 2.3 million DWR; $0.3 million annual debt service o $ 0.7 million Glenshire; $0.2 million annual debt service o $ 0.5 million Water Tank; $0.2 million annual debt service o $35.0 million total debt; $3.4 million annual debt service • Debt Goals o No more than 50% of annual water facilities fee revenue committed to debt service ■ 100% of FY13 projected water facilities fees revenue ($295,000) is allocated to the FY13 water debt payments from facilities fees ($500,000) o Water debt service ratio (DSR) must be more than 1.25 ■ DSR is a ratio of net operating revenue to annual debt service ■ DSR for FY12 was 1.61 ■ DSR is projected to be less than 1.25 in next budget cycle at current revenue levels • Operating (Cash) Reserve Goals o Electric General Fund Cash Reserve should be equal to one half of the annual operating expenses, excluding depreciation; $10,000,000 ■ Current General Fund balance $5,900,000 o Electric Rate Stabilization Fund should maintain a balance of$3,000,000 Rate Stabilization Fund balance $2,892,000 ■ Budgeted contributions in FY13 will achieve goal by year end 3 Minutes: August 21, 2013 • Capital Reserve Goals o There should be a Water Capital Reserve Fund in the amount of$4,000,000 ■ Water Capital Replacement Fund balance $3,000,000 ■ Utilized fund for capital projects in FY12 and FY13: main replacements • Budget Process o September 4th ■ Mission, goals and objectives ■ Budget assumptions ■ Organization ■ Staffing levels ■ Debt ■ September 18th ■ Purchased power plan ■ Overview of the Prop 218 process o October 2nd ■ Updated water rate study ■ Operating and capital budgets of supporting services ■ October 16th ■ Operating and capital budgets of electric and water operations ■ Reserve funds ■ Revenue, rates, fees and charges o November 6th ■ Draft budget ■ Financial master plan ■ Public hearing regarding draft budget ■ November 20th ■ Consideration of adopting FY14 and FY15 budget ■ Public hearing regarding water rates There was no public input. Board discussion: • What is the estimated time to pay off the water debt? • When will the Glenshire debt be paid off? • How many months would $3 million cover if we had to deal with our purchase power costs? 4 months? This may need to be talked about and adjusted upwards. We have seen spikes; we know they can occur. • What is the total of the reserve fund balances? • What is the meter reserve — does this just come from the surcharge? • What does DSC stand for? • Electric and water goal is a little over $22.5 million and now we are at about $19 million • With the current water rates- can the District achieve water capital reserve target in the near future? • Want to see the capital improvement plan associated with the finance master plan - how they weave together. How are we going to fund this reserve and active capital projects as well? 4 Minutes: August 21, 2013 • Water rates- how are they affected by the $5 meter surcharge? • Once the meter surcharge is done, then that reserve fund will go away, correct? • Take a hard look at rate reserve model and understand that $3 million is not enough to protect the District from potential volatility as to purchase power costs. Cannot predict the future. • Are the reserve funds in interest bearing accounts? • Electric general fund goal is $10 million and capital reserve fund goal is $1 million. So if there was any significant maintenance, say a substation problem- would the general fund or capital reserve fund be used? Where do the funds come from for a project? Is $1 million adequate or should the Board look at that as well. Look at how reserve fund goals are met. • In the event of an emergency, we could use the Electric general fund for repairs. • What happened with the $4 million capital Water reserve? How did it get used? We need to keep replacing water mains. ROUTINE BUSINESS TREASURER'S REPORT Approval of the fund balances as of June 30, 2013: Director Laliotis moved, and Director Ellis seconded, that the Board approve the treasurer's report for the month ended June 30, 2013. ROLL CALL: All Directors, aye. SO MOVED. Approval of disbursements for July 2013 Director Aguera moved, and Director Hemig seconded, that the Board approve the July 2013 disbursements report. ROLL CALL: All Directors, aye. SO MOVED. APPROVAL OF MINUTES FOR JULY 17, 2013 Director Ellis moved, and Director Laliotis seconded, that the Board approve the minutes of July 17, 2013. ROLL CALL: All Directors, aye. SO MOVED. CLOSED SESSION CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(D)(1), CONFERENCE WITH LEGAL COUNSEL ON EXISTING LITIGATION: SIERRA PACIFIC POWER CO/DBA NV ENERGY SCHEDULE 4 ENERGY IMBALANCE, CASE NO. ER13-247-000 CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(D)(1), CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION: MERGER OF SPPCO AND NEVADA POWER CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9,(D)(1), CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION: ONE CASE MCCRARY V TDPUD CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9,(D)(1), CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION: ONE CASE YOLKEN V. TDPUD 5 Minutes: August 21, 2013 PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION 54957 (E): GENERAL MANAGER PERFORMANCE PLAN REVIEW CLOSED SESSION RETURN TO OPEN SESSION Report from Closed Session There was no reportable action. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 8:55 PM. TRUCKEE D AMI PUBLIC UTILITY DISTRICT 9. Je W B er, President 4. Prepared by :.`` < _ "t "" Barbara Cahill, Deputy District Clerk 6 Minutes: August 21, 2013 e® r _ Finding the Necessity to Sole Source the Purchase of Water Meters from Neptune technology Group RECITALS WHEREAS, the Water Measurement Law (SB 229), requires that water meters be installed on all new commercial and residential water connections; and WHEREAS, AB 2572 requires that all water system customers be equipped with a water meter no later than January 1, 2025; and WHEREAS, AB 2572 also requires that customers equipped with a water meter are billed on a volumetric basis; and WHEREAS, the District awarded a contract for the provision of an automated meter reading (AMR) system in September 2008 to enable compliance with AB 2572 and to improve the District's customer service capabilities; and WHEREAS, the selected AMR system utilizes water meters manufactured by the Neptune Technology Group; and WHEREAS, the continued purchase of water meters from the Neptune Technology Group is necessary to maintain the compatibility and functionality of the AMR system. The Truckee Donner Public Utility District ("District") does RESOLVE as follows: 1. The sole source purchase of water meters from the Neptune Technology Group is necessary in order to match the functionality of the water meters currently in use in the District water system. PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District in a meeting duly called and held within said District on the twenty first day of August, 2013. AYES: Directors Aguera, Bender, Ellis, Hemig and Laliotis NOES: None ABSENT: None ABSTAIN: None: T CKE NNER UBLIC UTILITY DISTRICT Ben�r, President ATTEST: Michael D. Holley, P.E. Clerk of the Board Finding the Necessity to Sole Source the Purchase of Meter Transmitter Units from Aclara RECITALS WHEREAS, the Water Measurement Law (SB 229), requires that water meters be installed on all new commercial and residential water connections; and WHEREAS, AB 2572 requires that all water system customers be equipped with a water meter no later than January 1, 2025; and WHEREAS, AB 2572 also requires that customers equipped with a water meter are billed on a volumetric basis; and WHEREAS, the District awarded a contract for the provision of an automated meter reading (AMR) system in September 2008 to enable compliance with AB 2572 and to improve the District's customer service capabilities; and f, WHEREAS, the selected AMR system utilizes water meters manufactured by Aclara; and WHEREAS, the continued purchase of meter transmitter units from Aclara is necessary to maintain the communication compatibility with the AMR system. The Truckee Donner Public Utility District ("District") does RESOLVE as follows: 1. The sole source purchase of meter transmitter units from Aclara is necessary in order to match the functionality of the meter transmitter units currently in use in the District water system. PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District in a meeting duly called and held within said District on the twenty first day of August, 2013. AYES: Directors Aguera, Bender, Ellis, Hemig and Laliotis NOES: None ABSENT: None ABSTAIN: None CK PUBLIC UTILITY DISTRICT mil- nder, President ATTEST: Michael D. Holley, P.E. Clerk of the Board soluti 1 Directing that competitive bidding be dispensed in the purchase of Electric Meters WHEREAS, the Electric Utility Department purchases electric meters for its new customers and District needs; and WHEREAS, iTron is the only meter manufacturer that meets the District's specifications for electric meters; and WHEREAS, General Pacific is the only authorized seller of iTron products in our area; and WHEREAS, purchasing electric meters from another vendor would not be desirable, would be costly to the District and would not provide meters that meet the District's f. specifications; and ,l WHEREAS, various California court decisions, including Graydon v. Pasadena Development Agency, 104 C.A. 3d 631 (1980), hold that if the subject of a contract is such that competitive proposals would be unavailing or would not produce an advantage and the advertisement for competitive bids would thus be undesirable or impractical, a public agency may dispense with competitive bidding; and WHEREAS, due to the facts set forth above, competitive bidding would be unavailing and would not produce an advantage to the District and the advertising for competitive bids would not produce an advantage to the District and would be undesirable; and WHEREAS, Public Utilities Code Section 20206.4 generally requires that the District seek competitive bids in connection with the purchase of goods; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors that it adopts the above stated recitals as its findings. BE IT FURTHER RESOLVED BY THE Board of Directors that for the reasons set forth above, the District finds that competitive bids for the purchase of electric meters would be unavailing and would not produce an advantage to the District and the advertisement for competitive bids would not produce an advantage to the District and would be undesirable and costly. Resolution 2013-19 1 BE IT FURTHER RESOLVED that the District shall therefore dispense with competitive bidding for the acquisition of electric meters. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 21 st day of August 2013 by the following roll call vote: AYES: Directors Aguera, Bender, Ellis, Hemig and Laliotis NOES: None ABSENT: None ABSTAIN: None TRUCKEE DONNER PUBLIC UTILITY DISTRICT ByB Je President ATTEST: Michael D. Holley, District Clerk f. Resolution 2013-19 2