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Home My WebLink About2013-09-04 Min - Board REGULAR MEETING September 4, 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 6:01 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 Hemig led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT Neil Kaufman, Trisha Ruby, Stephen Hollabaugh, Steven Poncelet, Bob Mescher; Kim Harris, Brian Wright, Michael Holley and Barbara Cahill CONSULTANTS PRESENT Steve Gross OTHERS PRESENT Juanita Schneider CHANGES TO THE AGENDA General Manager Holley stated there were no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE There were no Director updates. ACTION ITEM CONSIDERATION OF FORECLOSURES IN THE COMMUNITY FACILITIES DISTRICTS; AND DELINQUENCY UPDATES FOR OLD GREENWOOD AND GRAY'S CROSSING This item involves consideration of foreclosures of parcels in the Gray's Crossing and Old Greenwood Community Facilities Districts; and an update on delinquent assessments. Director Hemig moved, and Director Ellis seconded, that the Board: • Adopt Resolution 2013-20 authorizing staff and special counsel to proceed with the foreclosure process on all delinquent parcels in both Old Greenwood and Gray's Cross- ing Community Facilities Districts • Authorize the continuation of the contract for legal services with Stradling Yocca Carlson & Rauth ROLL CALL: All Directors aye, by voice vote. SO MOVED 1 Minutes: September 4, 2013 BUDGET DISCUSSION OF FY14 & FY15 BUDGET: OBJECTIVES, GOALS, ASSUMPTIONS, LABOR, AND EXISTING DEBT Robert Mescher gave a presentation: • Budget Schedule o September 4 (tonight) — Discuss objectives, goals, assumptions, and debt o September 18 — Review the Prop 218 process — Present Purchased Power Plan o October 2 — Discuss operating and capital budgets of Electric & Water Utilities — Review reserve funds o October 16 — Discuss operating and capital budgets of supporting services — Review revenue, rates, fees and charges — Present a draft Financial Master Plan o November 6 — Review the Financial Master Plan — Present an updated water rate study — Present a draft of the FY14 & FY15 Budget — Hold a public hearing regarding the budget o November 20 — Consider adoption of the FY14 & FY15 Budget o January 15 — Hold a public hearing regarding water rates, if rate increase proposed • Prior Budget - FY13 Approved Budget Highlights (in millions of dollars) Total Electric Water District Operating Revenue & Investment Earnings $ 23.2 $10.9 $ 34.1 Transfers from Other Funds 1.2 3.4 4.6 Total Source of Funds $ 24.4 $14.3 $ 38.7 Operating Expenses $ 20.0 $ 7.8 $ 27.8 Debt Service 0.9 3.3 4.2 Transfers to Reserves 0.6 1.5 2.1 Capital Projects 2.9 1.7 4.6 Total Use of Funds $ 24.4 $14.3 $ 38.7 2 Minutes: September 4, 2013 • Prior Bud et - FY13 Electric Expenses Public Information Reserves &Conservation 3% 6% ti Supplies, Material, Purchased &Other Power 10% 1V 55% Debt 4% Labor 22% • Prior Budget - FY13 Water Expenses Reserves,6% Meters,7% r Electric Power Labor,41% 14% Supplies, Materials, Outside Svcs, 16% Debt,16% • Summary of 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 manner at the lowest practical cost 3 Minutes: September 4, 2013 • Utility rates have not increased since January 2009 for electric and January 2011 for water o Water rate increase for FY12 & FY13 was deferred o Compounded inflation since 2009 is over 11% 2009 2010 2011 2012 2013 Compounded Electric 3.00% 0.00% 0.00% 0.00% 0.00% 3.00% Water 0.00% 1.75% 1.75% 0.00% 0.00% 3.53% Inflation (CPI-U for Dec-to-Dec) 2.71% 1.50% 2.96% 1.74% 2.00% 11.40% • New Information o Annual inflation is expected to be 3% o New development activity will increase o No new debt o No planned electric rate increase in FY14 & FY15 o Water rates: — Estimated annual increase of 3% in FY14 & FY15 — $5 monthly water meter surcharge (7.5%) ends December 31st o Labor: — Estimated labor rate increase of 2% in FY14 — Estimated labor rate increase of 3% in FY15 — One IT employee added in FY14 f — One Work Order employee restored in FY15 • Projected Debt Balances (in millions of dollars) FY13 FY14 FY15 Electric Utility Pension Obligation Bond 6.7 6.2 $ 5.6 Total Electric Utility Debt $ 6.7 $ 6.2 $ 5.6 Water Utility 2006 COP - Pipeline Replacement $21.0 $20.1 $19.1 State Revolving Fund - Donner Lake 0.7 8.0 7.4 Dept of Water Resources - 1996 2.0 1.8 1.5 MSG 1552- GIenshire Water System 0.6 0.5 0.3 MSG 1551- Bridge Street Tank 0.5 0.4 0.3 Total Water Utility Debt $32.3 $30.8 $28.6 • Fiscal Impact: This budget workshop is part of the overall budget process that will affect the District's spending for the next two fiscal years r There was no public input. 4 Minutes: September 4, 2013 f Board discussion: • What is the average residential water till? With the $5 meter surcharge done on December 31, 2013; then the possible 3% increases in water rates in 2014 and 2015 would net a $3 decrease • Would he possible water rate increase be for both 2014 and 2015? • It seems water has a lot of debt. In forecasting out 10 to 20 years, would we need to borrow more money? Would we continue to retire the existing debt? • The 218 process and public hearing to raise water rates is contingent on adoption of the budget in November. • The budget is on its way now. • No more questions at this high level. WORKSHOPS DISCUSSION OF THE DISTRICT PIPELINE REPLACEMENT — 2014 PROJECT This item involves a discussion regarding the 2014 Water Pipeline Replacement Project. Neil Kaufman gave a presentation: • The Water Department has a need to replace existing pipelines in two categories: o Pipes in poor condition requiring repeated repairs o Pipes that are old, undersized (typically 4-inch diameter and smaller) and have exceeded their useful life f` • Staff is conducting preliminary engineering work associated with District Pipeline Replacement — 2014 project o Cost estimating & budgeting o Environmental review o Identifying existing utilities o Coordination with other local agencies • A number of pipeline segments for replacement have been identified o Sanders Well yard piping o Boca Street o Sierra Drive o Rainbow Drive o Whitetail Lane o Julian Avenue o Northwoods Blvd o Sun Valley Road o Johnson Lane o Willow Street service laterals & meter boxes • Sanders Well yard piping o Significant number of leaks have arisen in the past month o Turned off for the Winter • About 1,300 feet of pipe in Biltz Tract— Boca Street & Sierra Drive o Single lane roads o Likely to be rocky o Temporary aboveground piping system o Test case for other streets 5 Minutes: September 4, 2013 • Current project schedule o Engineering & design — Fall 2013 o Environmental review & permitting — Fall 2013 o Advertising for Bids — February 2014 o Bid Opening — March 25, 2014 o Bid Award —April 2, 2014 o Begin Construction — May 1, 2014 o Complete Construction — October 2014 • Fiscal Impact o Water Department is proposing $1,000,000 for the construction contract o Bid documents will include additive alternates to provide flexibility o Planned funding source is Capital Replacement Fund o Other costs associated with inspection, geotechnical testing and environmental services There was no public input. Board discussion: • Will new pipe go in the same trench as the old pipe that will be removed? • Are there more additive alternates in addition to the list? • Go with this proposed project schedule, pipes need replacement • Boca Street & Sierra Drive- are they priorities above all others? • District did segments this year- was this cost effective compared to taking out a bond and doing a lot of linear feet? Is it cost effective to jump around and do spots versus doing a lot of main replacement- a geographic spread to make more cost effective • What is the estimated cost? DISCUSSION OF NEW WATER CONSERVATION PROGRAMS This item involves a discussion of potential new Water Conservation Programs. Trisha Ruby gave a presentation: • District investing in conservation since 2008 o Current water conservation programs include — Toilet rebate — Toilet exchange — High efficiency clothes washer water rebate — Free water efficient measures • Customer water usage continues to peak in summer o Primarily driven by irrigation o Other factors in water use — irrigation start-up/shut-down — improperly operated stop and drain valves • Staff investigating pilot residential and commercial water audits o Primarily target irrigation but also include indoor use f' o Water audits are not unique o Emphasize education on irrigation start-up/shut-down and winterizing 6 Minutes: September 4, 2013 • Use data collected to plan future water conservation measures o Irrigation system tune-ups o Control replacement o New or replacement irrigation equipment • Pilot water audit program o Start this Fall o Include —10 residential & 2 commercial audits o Utilize Certified Landscape Irrigation Auditor • Fiscal Impact: Final costs for pilot water audit program being developed o Direct costs estimated at $3,000 for FY13 There was no public input. Board discussion: • Different set of problems with irrigation in the fall and the spring- good to adjust • Am interested as I irrigate a lot in the summer • So there are very few irrigation auditors in this area, so does this mean there is only one in Truckee? • Is the toilet exchange for all toilets under 1.6 gallons per flush or is it higher gallons per flush? ROUTINE BUSINESS TREASURER'S REPORT Approval of the fund balances as of July 31, 2013: Director Hemig moved, and Director Laliotis seconded, that the Board approve the treasurer's report for the month ended July 31, 2013. ROLL CALL: All Directors, aye. SO MOVED. Approval of disbursements for August 2013: Director Aguera moved, and Director Ellis seconded, that the Board approve the August 2013 disbursements report. ROLL CALL: All Directors, aye. SO MOVED. APPROVAL OF MINUTES FOR AUGUST 21, 2013: Director Laliotis moved, and Director Ellis seconded, that the Board approve the minutes of August 21, 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 EXISITING 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, EXISITING LITIGATION: MERGER OF SPPCO AND NEVADA POWER 7 Minutes: September 4, 2013 PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION 54957 (E): GENERAL MANAGER PERFORMANCE PLAN REVIEW 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 8:20 PM. TRUCK P LIC UTILITY DISTRICT 7,,,7 - Jef(Be r, President Prepared by `fa ` Barbara Cahill,/Deputy District Clerk 8 Minutes: September 4, 2013 Sam, RESOLUTION NO. 2013 0 20 r, RESOLUTION OF THE BOARD OF DIRECTORS OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT ACTING ON ITS OWN BEHALF AND AS THE GOVERNING BODY OF ALL OF ITS COMMUNITY FACILITIES DISTRICTS (OLD GREENWOOD No. 03-1 AND GRAYS CROSSING No. 04-1) AUTHORIZING RETENTION OF SPECIAL COUNSEL WHEREAS, the Truckee Donner Public Utility District (the "TDPUD") has conducted proceedings resulting in the formation of Community Facilities Districts ("CFDs"; the District and the CFDs are collectively referred to as "District") and the issuance and sale of bonds or debt pursuant to the Mello-Roos Community Facilities Act of 1982 (Cal. Gov. Code Section 53311, et seq.; the "Act"); and WHEREAS, pursuant to the Act, the District has duly recorded Notices of Special Tax Lien and has duly and regularly levied CFD special taxes, which special taxes and interest and penalties thereon constitute a lien against the parcel of the land against which it was levied until the same are paid, which liens secure in whole or part debt issued pursuant to the Act; and WHEREAS, certain installments of the special taxes have not been paid when due, and certain special taxes may not be paid when due in the future; and WHEREAS, pursuant to Section 53356.1(a) of the Act, the District is authorized to order the special taxes collected by an action brought in the Superior Court to foreclose their liens; and WHEREAS, pursuant to Section 53356.1(b) of the Act, the District covenanted for the benefit of owners of the debt to file such foreclosure actions on behalf of the debt holders and are authorized to order the County Auditor to credit the delinquent special taxes upon the secured tax roll, thus relieving the County Tax Collector of further duty and regard thereto; and, WHEREAS, the District wishes to retain experienced, qualified counsel to prosecute such judicial foreclosure actions, NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the TDPUD acting on its own behalf and as the Legislative Body of all of the District CFDs that: 1. The Board finds that the Act authorizes the commencement of judicial foreclosure proceedings to collect delinquent special taxes, and hereby orders that the delinquent special taxes listed on the attached Exhibits Al and all future delinquent special taxes as to such property, be collected by action brought in the appropriate Superior Court to foreclose the liens thereof. Racnh itinn gni i-go 1 r _ F 2. The District President of the Board is authorized to retain Stradling Yocca Carlson & Rauth, a law firm, as special counsel on the terms set forth in the agreement presented to the Board to prosecute the foreclosure actions and to collect on behalf of the CFDs all amounts due on account of the special taxes listed in Exhibits Al and any subsequent delinquent special taxes. 3. The Board finds that the Act provides for the payment of the costs and attorneys fees for prosecution of the foreclosures authorized by the District and hereby authorizes Attorneys to require payment on its behalf of all costs and all attorneys fees incurred as to each delinquent parcel as a condition of such redemption as provided in the agreement. Adopted by the Board of Directors of the Truckee Donner Public Utility District acting on its own behalf and as the Legislative Body of all of its Community Facilities Districts at a regular meeting held on September 4, 2013, by the following vote: AYES: Directors Aguera, Bender, Ellis, Hemig and Laliotis NOES: None ABSTAIN: None ABSENT: None TR 'KE NER PUBLIC UTILITY DISTRICT ( eff.Bender, President ATTEST: Michael D. Holley, P.E. Clerk of the Board r. Rcenh ifinn 7n1 QJCX 7