HomeMy WebLinkAbout2011-11-16 Min - Board REGULAR MEETING
November 16, 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 per-
petually 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, Laura Clauson Ferree, Ron Hemig, and
Tony Laliotis were present.
PLEDGE OF ALLEGIANCE
Director Aguera led the Board and public in the Pledge of Allegiance.
EMPLOYEES PRESENT: Stephen Hollabaugh, Nancy Waters, Steven Poncelet,
Bob Mescher, Michael Holley and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross
OTHERS PRESENT: Scott Parker and Jamie Brimer
CHANGES TO THE AGENDA
General Manager Michael Holley said there are no changes to the agenda.
PUBLIC INPUT
There was no public input.
DIRECTOR UPDATE
Director Laliotis asked if anyone from the District attended the Biomass Workshop.
ACTION ITEM
CONSIDERATION OF APPROVING ACTION ITEMS RELATED TO THE FY12 AND FY13
BUDGET
A) APPROVE A RESOLUTION ADOPTING THE FY12 AND FY13 BUDGET AND
OVERHEAD ALLOCATION RATES
B) APPROVE THE RELATED TRANSFERS FROM RESERVE FUNDS
C) ADOPT THE FY12 AND FY13 PURCHASE POWER AND RESOURCE PLAN
This item involves approving actions related to the FY12 and FY13 Budget, overhead
allocation rates, related transfers from reserve funds and Purchase Power and
Resource Plan.
Director Laliotis moved, and Director Ferree seconded, that the Board:
• Approve the resolution adopting the FY12 and FY13 Budget and overhead allocation
rates
• Approve the budgeted transfers
Adopt the FY12 and FY13 Purchase Power Plan
ROLL CALL: all Directors aye, by voice vote. SO MOVED
1 Minutes: November 16, 2011
WORKSHOP
UPDATE ON DISTRICT FIBER ASSET This involves information on the District Fiber
Asset.
Stephen Hollabaugh gave a presentation:
• Background / History
o AT&T became the successor-in-interest to Sierra Pacific Communication (SPC) with
respect to the Dark Fiber IRU Agreement, maintenance agreement and the conduit
purchase and sales agreement
0 2009: District found that the long haul fiber(LHF) asset was surplus
■ Instructed consultant to evaluate sale to interested parties
0 2009: Consultant prepared an RFP for Sale of Telecom Infrastructure (LHF)
0 2009 — Present: Consultant helped with the costing and buyer due diligence
■ Electric Lightwave LLC (ELI) is the proposed buyer
• New Information
o AT&T dispute: A dispute arose over the agreements regarding the proper location of
the end-points of the dark fiber in Reno and Sacramento
■ Reno location was about 50 feet off
■ Sacramento location was about 2500 feet off
■ AT&T and the District agreed to mediate the dispute
o AT&T and the District Settlement Agreement:
■ AT&T consented to the District's assignment of all of its rights, privileges and obli-
gations
■ AT&T agreed to provision the fiber strands to ELI at specified locations in Reno
and Sacramento
■ ELI has agreed to accept the assignment and assume all rights, privileges and
obligations under the AT&T/District Agreements
■ ELI agrees to comply with all of AT&T's requirements for collocation
o Assignment and Assumption Agreement between the District and ELI
■ District agrees to transfer all interest in (LHF) to ELI for a sum of one million one
hundred thousand dollars ($11100,000)
■ ELI assumes the Dark Fiber IRU Agreement between AT&T and the District
■ ELI assumes annual payment obligations to AT&T of $13,333.33 annually from
2012 through 2022 for a present value (PV) of$123,368
• Fiscal impact
o The total value of this transaction to the District is $1,223,368
o $1,100,000 lump sum payment
o Present value of the avoided cost to AT&T is $123,368
There was no public input.
Board discussion:
• If this revenue transaction is not in the Budget, where does it go?
• What is the District paying ATT for?
• Was ELI the only bidder?
• Good to be close to the end of the fiber sale
• The dollars used on this asset were from the electric department
2 Minutes: November 16, 2011
• Will the District no longer have rights to the four dark fiber?
• But the District still owns and control s the use of the conduit. There is value there.
""� • Are there fees for the professional services that assisted with the fiber sale?
• Would have liked to have had Broadband, but at least this created competition
• Great job- the sale was two years in the making and dealing with the lawsuit
CLOSED SESSION
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9,
SUBDIVISION (A), EXISTING LITIGATION, TDPUD V. NEVADA COUNTY LAFCO
RETURN TO OPEN SESSION
Report from Closed Session
By unanimous roll call vote, the Board approved the terms of a settlement agreement with
Nevada County LAFCo, and authorized the presentation at the LAFCo meeting on Novem-
ber 17, 2011.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 7:45 PM.
TRUCK UBLIC UTILITY DISTRICT
Jeff en resident
Prepared by --
Barbara Cahill, Deputy District Clerk
3 Minutes: November 16, 2011
Resolution No. 2011 - 23
ADOPTING THE BUDGET AND OVERHEAD RATES
FOR FY1 2 and FY1 3
WHEREAS The Board of Directors adopted a Mission Statement and statement of goals and
objectives for the District; and
WHEREAS District staff used that Mission Statement and statement of goals and objectives
to prepare a draft FY12 and FY13 Budget; and
WHEREAS the Board of Directors, Staff, and the public participated in budget workshops in
the months of September, October, and November of 2011; and
WHEREAS on November 2, 2011, the Board of Directors received a draft FY12 and FY13
Budget; and
WHEREAS on November 2, 2011, a public hearing was held; and
WHEREAS the Board of Directors accepts the organization changes as directed in the draft
FY12 and FY13 Budget.
WHEREAS the draft budget for District operations and capital spending for the years FY12
and FY13 describes accounting overhead allocation rates for labor,transportation, inventory,
administration, and construction costs; and
NOW THEREFORE BE IT RESOLVED by the Board of Directors of Truckee Donner
Public Utility District as follows:
1. The draft FY12 and FY13 Budget is hereby adopted.
2. The General Manager and Staff are authorized to implement the biannual FY12 and
FY13 Budget.
3. The following Budget overhead allocation rates are adopted:
Overhead Rate FY12 FY13
Labor 97% gg%
Transportation $ 11.80 $ 12.09
Inventory 21% 21
� Administration 3% 3%
Construction 1 18% 1 18%
1
Resolution 2011-23