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HomeMy WebLinkAbout2011-06-01 Min - Board REGULAR MEETING June 1, 2011 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 perpetually 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 Bender. ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig, John Hillstrom and Tony Laliotis were present. PLEDGE OF ALLEGIANCE Director Hillstrom led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT: Rosana Matlock, Neil Kaufman, Kathy Neus, Steven Poncelet, Nancy Waters, Tricia Phillips, Joe Horvath, Stephen Hollabaugh, Michael Holley and Barbara Cahill CONSULTANTS PRESENT: Steve Gross and Jodi Dobson OTHERS PRESENT: Dan Warren CHANGES TO THE AGENDA General Manager Michael Holley stated there are no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Hemig attended the Municipal Financing Authority (MUFA) meeting in Susanville. Discussion involved Horse Butte Wind Project. UAMPS has overcome some challenges and the project is moving forward. MUFA may serve as the finance vehicle for Horse Butte. Prepaid natural gas is not viable at this point with the current spread. Director Laliotis attended the Northern California Power Agency (NCPA) meeting. NCPA staff now has approval to begin marketing RECS in the pool. PUBLIC HEARING At 6:00 PM or soon thereafter as possible, a public hearing will be held for receiving written and/or oral comments from members of the public regarding: WATER AND ELECTRIC STANDBY CHARGES 1 Minutes: June 1, 2011 President Bender opened the public hearing at 6:07 PM. No written comments were received prior to the meeting. There were no public comments. The public hearing was closed at 6:08 PM. CONSENT CALENDAR CONSIDERATION OF RESOLUTIONS CONTINUING WATER AND ELECTRIC STANDBY CHARGES This item involves placing water and electric standby charges on Placer and Nevada County tax rolls. CONSIDERATION OF ANNUAL RESOLUTIONS FOR THE DONNER LAKE ASSESS- MENT DISTRICT This item relates to the resolutions setting the assessment amount under the terms of the Donner Lake Assessment District Number 00-1 and authoriz- ing Nevada and Placer Counties to collect the assessments on the County tax rolls. CONSIDERATION OF ANNUAL RESOLUTIONS FOR SPECIAL TAX: OLD GREENWOOD AND GRAY'S CROSSING COMMUNITIES FACILITIES DISTRICTS This item concerns requesting Nevada County to collect the special assessments for the Old Greenwood and Gray's Crossing Community Facilities Districts on the Nevada County tax rolls. CONSIDERATION OF AN EXTENSION OF THE CONTRACT WITH CASTROVILLA INC. FOR THE 2011 COMMERCIAL REFRIGERATION RETROFIT PROGRAM This item in- volves an extension of the 2010 Commercial Refrigeration Retrofit Program Con- tract. CONSIDERATION OF A RESOLUTION TO ADOPT THE DRAFT 2010 URBAN WATER MANAGEMENT PLAN This item involves approving a resolution to adopt the Draft 2010 Urban Water Management Plan. CONSIDERATION OF APPROVING THE NCPA AND TRUCKEE DONNER PUBLIC UTILITY DISTRICT POWER MANAGEMENT AGREEMENT AMENDMENT NO. 4 This Amendment between Northern California Power Agency and TDPUD extends the term of the Power Management Agreement for Scheduling services to June 30, 2012. Director Hemig moved, and Director Laliotis seconded, that the Board approve the consent calendar. ROLL CALL: All Directors aye, by voice vote. SO MOVED 2 Minutes: June 1, 2011 ACTION ITEM CONSIDERATION OF THE DRAFT AUDITED FINANCIAL REPORT FOR 2010 The Board will consider adopting the drafted audited financial reports for 2010. Director Aguera moved, and Director Hillstrom seconded, that the Board accept the draft Audited Financial Reports for 2010 and 2009. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF APPROVING DOCUMENTS RELATED TO THE CALPERS SIDE FUND REFINANCING This item involves approval of documents related to the CalPERS side fund refunding. Director Laliotis moved, and Director Hillstrom seconded, that the Board authorize the resolution for the issuance of bonds to refund certain side fund pension obligations of the Truckee Donner Public Utility District, approving the form and authorizing the execution of a Trust Agreement and purchase contract, and approving additional actions related sub- stantially to the form presented. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF THE AWARD OF A CONTRACT FOR PURCHASE OF COMPUTER NETWORKING EQUIPMENT This item concerns the award of a contract for the purchase of computer networking and ancillary equipment. Director Hillstrom moved, and Director Aguera seconded, that the Board: • Authorize a purchase order to Net Experts, Inc. for $227,011.66, plus a 10 percent change order allowance for an amount not to exceed $254,011.66 plus tax • Authorize a purchase order to Transource Computers for $37,032.33, plus a 10 percent change order allowance for an amount not to exceed $40,732.33 plus tax • Authorize the transfer of $25,522 from the Electric Capital Replacement fund to the Electric General Fund • Authorize the transfer of $100,521.99 from the Water Capital Replacement fund to the Water General Fund. ROLL CALL: All Directors aye, by voice vote. SO MOVED WORKSHOP GLENSHIRE SURCHARGE STATUS This item is a recap of the debt status of the Glenshire water system. Kathy Neus gave a presentation: • District acquired Glenshire Mutual Water Co. (GMWC) 2002 • Capital Improvements were required • GMWC customers agreed to pay for improvements • All GMWC assets transferred to the District • Cash & land sales proceeds used to offset costs • Two loans o External loan $1,740,000 3 Minutes: June 1, 2011 o Internal loan $246,000 • To pay off loans a surcharge was accessed o $10.75 per month with an end date November 2017 • February 2009 Internal loan extinguished o Sale of south side parcel o Accumulated surcharge of$33,000 • Remaining north side parcel o Listed for sale in 2007 o Truckee Fire Protection District leased the parcel from December 2009 through March 2011 o Parcel re-listed for sale April 1, 2011 o District entered into contract with Brad Peik in May 2011 o Escrow to close June 3, 2011 • Letter sent to all customers paying surcharge in May 2011 asking for an opinion on two options • General options regarding the surcharge o Reduced monthly surcharge from $10.75 to $4.83 o Adjust end date from November 2017 to March 2014 o Feedback from the area residents was the majority want to lower the monthly payment Outstanding Loan Amount $17126,000 Parcel sales proceeds (360,000) Estimated sales commission 20,000 Repairs 45,000 Fire Protection District Rent (25,000) Glenshire surcharge account balance (243,000) Balance of Obligation $563,000 Projected reduced surcharge through 11/30/2017 $4.85 OR Projected remaining months at $10.75 surcharge 35 3/31/2014 • Fiscal Impact o There is no direct fiscal impact associated with this workshop item o Either option is revenue neutral to the District Public input: • Glenshire Residents Association General Manager, Dan Warren, appreciates the PUD keeping on target. Either direction from the TDPUD Board is fine with the residents, although reducing the payment is preferred. Board discussion • Understand the sentiment on lowering the payment as people get the benefit immediately • Good at this point to get rid of the asset and turn into dollars 4 Minutes: June 1, 2011 • Appreciate Dan Warren's comments • Immediate impact is good for the public • Pleased with public outreach to give Glenshire residents options to move forward • Great job of reaching out to Glenshire- decent feedback; impressed people rallied • Agree with the sentiment to save now • Turnover in Glenshire benefits new people Seems more than fair to all 22 responses to the letter is good Good to reduce the payment and finally move on Thanks also to Dan Warren for his comment and good outreach by PUD staff Immediate impact is most beneficial DISCUSSION REGARDING THE DRAFT LAFCO SPHERE OF INFLUENCE PLAN UPDATE This item involves a discussion about the draft Sphere of Influence Plan Update Report of the Local Area Formation Commission (LAFCo) of Nevada County. Kathy Neus gave a presentation: • LAFCo special meeting on May 19, 2011 o Electrical Services Municipal Service Review (MSR) o Sphere of Influence (SOI) • Water Department MSR was part of Eastern County Water Services MSR which was completed and accepted in 2005 • LAFCo is responsible for determining boundaries of municipal service providers o Discourage urban sprawl o Preservation of prime agricultural and open space lands o Assure efficient local government services o Encourage orderly growth and development of local agencies • In order to establish SOI LAFCo is required to make a determination based upon the following: o Present and planned land uses in the area o Present and probable need for public facilities and services o Present capacity of public facilities and adequacy of public services provided by the agency o Social or economic communities of interest • District received a Preliminary Draft SOI Plan Update in May 2011 • District responded at May 19, 2011 LAFCo Special Meeting • District Counsel gave testimony • Main issues with the draft SOI o Report is of substandard quality o It is incomplete o Does not comply with State Law and LAFCo guidelines o Contains misleading information and unsubstantiated conclusions • As a result, LAFCo has agreed to continue the workshop to the July 21, 2011 scheduled meeting • Allows time for District staff to provide LAFCo with a preferred sphere boundary • The preferred boundary will be distributed with the Draft Report 5 Minutes: June 1, 2011 • The District met with the LAFCo Executive Director and consultant to gain a better understanding of concerns and intents There was no public input. Board discussion: • LAFCo decided there was no rush and this SOI needs to be one right • Glad LAFCo will work with the PUD to clean up the document • Want good conclusions and not open ended items • Is the sphere about District boundaries • Did the meeting with LAFCo give a better understanding of LAFCo's concerns and interests • Why was the original document so bad • Thanks to counsel Steve Gross for his time in this process and for speaking at the special LAFCo meeting • Were there a lot of conversations with the consultant who produced the draft; seems like this report would need a lot of time and communication during the draft report stage • Hopefully the outcome will be favorable where the District needs to go in the future • Does this mean both the District and LAFCo have a better understanding • There should be a better understanding on where the sphere should be • What is the impact of this document if someone is outside the sphere of influence • We need to agree on the boundary in the document Counsel Steve Gross answered the question about the impact of the SOI. It is just the probable boundaries of the District. LAFCo should review this every five years according to a required statute. It can change due to conditions or development pressures. When there is a sphere that proposed to change as dramatically as this was, it could send a signal that the District was done growing. If someone was really interested in having development or receiving services, it would be more difficult for them to do that. It makes sense for the District to look out for the long term to be able to grow and provide services in certain are- as because it makes sense from an environmental perspective. Our carbon footprint is much smaller. When we provide services (electric and water) that consumes electricity, there is a lesser impact to us than to neighboring utilities to provide services. We have social and economic communities of interest even though we may be divided by county lines. We tend to look across county lines and feel we are one community. We have facili- ties that are adjacent in many of these areas that we would like to have in our sphere. There are economies of scale not only to those potential customers, but to our existing customers. There are a variety of reasons. Look at the future of facilities, future needs of water, access to the aquifer, and development of facilities. Really a host of reasons. It would make sense to have another look at the sphere from the District's perspective. 6 Minutes: June 1, 2011 DISCUSSION OF THE GREEN TAG PROGRAM Presentation and discussion of the District's Voluntary Green Tag Program. Kathy Neus gave a presentation: • Green Tag Program began as a way for individuals to reduce their environmental impact • Through the purchase of Renewable Energy Credits (RECs) • Green Tags purchased from Bonneville Environmental Foundation (BEF) o Non-profit organization o Markets to public utilities, businesses, government agencies and individuals • Voluntary Green Tag Program began at the request of District customers • 10 total participants o Last sign-up June 2009 o Two withdrawals 2011 (8 current participants) • District currently purchases 27% of its power from renewable resources o New legislation requires 33% of power to be from renewable resources by 2020 o By 2014 the District will be at 40% for renewable resources • Program not heavily utilized • 75% of Green Tags purchased by two commercial participants • 793 Green Tags have been purchased o $7,930.00 spent on Green Tag purchases • Fiscal Impact o Cost to participate is $0.02 per kilowatt hour of usage o The cost to administer the program is approximately $2,600 per year There was no public input. Board discussion: • Director Hillstrom is one of the eight participants • OK to see discontinued as lightly subscribed • Two commercial entities • Should reach out to give them an alternative • What about a bill stuffier to the participants—or maybe just call them • Cost to District is $2,700 per year- not paid by participant • Have not had activity in two years • Have given a good run • Wise to discontinue • Can the customers in the program just go directly to BEF and what is the difference in cost • Have we advertised enough • We should modify the web page to direct people to go to BEF • Dissolve the program 7 Minutes: June 1, 2011 ROUTINE BUSINESS TREASURER REPORT Approval of the report: Director Hemig moved, and Director Laliotis seconded, that the Board approve the treasurer's report for the month ended April 30, 2011. ROLL CALL: All Directors, aye. SO MOVED. Approval of disbursements: Director Aguera moved, and Director Hillstrom seconded, that the Board approve the May 2011 disbursements report. ROLL CALL: All Directors, aye. SO MOVED. APPROVAL OF MINUTES FOR MAY 412011 Director Hemig moved, and Director Laliotis seconded, that the Board approve the minutes of May 4, 2011. ROLL CALL: All Directors, aye. SO MOVED CLOSED SESSION CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957.6, CONFERENCE WITH LABOR NEGOTIATOR. DISTRICT REPRESENTATIVE: MICHAEL D. HOLLEY; EMPLOYEE REPRESENTATIVE: IBEW LOCAL 1245 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 8:15 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jeff Bender, President Prepared by Barbara Cahill, Deputy District Clerk 8 Minutes: June 1, 2011