HomeMy WebLinkAbout2011-10-19 Min - Board REGULAR MEETING
October 19, 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 anv 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 Laliotis led the Board and public in the Pledge of Allegiance.
EMPLOYEES PRESENT: Steven Poncelet, Ian Fitzgerald, Mark Thomas, Stephen Holla-
baugh, Bob Mescher, Michael Holley and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross
OTHERS PRESENT: Juanita Schneider, Adela Gonzales de Valle, Scott Parker, Josh
Susman and Sharon Cross
CHANGES TO THE AGENDA
General Manager Michael Holley stated there are no changes to the agenda
PUBLIC INPUT
Josh Susman asked the Board if there had been any discussions regarding the contract and
relationship with special counsel hired for the LAFCo lawsuit. He plans to have a discussion
with LAFCo staff and will get with General Manager Holley about setting up a time for a joint
meeting. This should be beneficial for PUD Directors and LAFCo ,commissioners to meet
and hear the same thing at the same time.
Sharon Cross of Prosser Lakeview subdivision said there is an issue lightingthe sign at the
entrance. A few years ago, the deteriorated sin g
9 g was removed and after hours of planning
and donations, a new sign is being erected. Now there is an issue about how to light the
sign. A solar light similar to ones at a bus stop5 g
run $ 000. She wanted to ask the PUD if
they had any ideas how to light the sign. The sign is next to her property, and she does not
want to run a line and pay monthly to light the sign. The Board asked Steven Poncelet of the
Conservation Department to contact Ms. Cross.
DIRECTOR UPDATE
There were no Director reports.
1 Minutes: October 19, 2011
--- CONSENT CALENDAR
President Bender asked that Agenda Item No. 7 regarding the Contract Extension of the
Family Resource Center be voted on separately.
CONSIDERATION OF EXTENDING THE CONTRACT FOR THE ENERGY SURVEY
PROGRAM This item involves renewal of the Family Resource Center Contract for the
Energy Survey Program.
General Manger Holley and Director Ferree recused themselves as they are both involved
with the Family Resource Center.
Director Aguera moved, and Director Hemig seconded, that the Board extend the contract
with the Family Resource Center of Truckee for a one-year period for an additional amount
of$14,500 at the current contract terms and conditions.
ROLL CALL: Director Ferree, recused; all other Directors aye, by voice vote. SO MOVED
SCHEDULE A PUBLIC HEARING TO TAKE PUBLIC COMMENT REGARDING THE
ADOPTION OF THE FY12 AND FY13 BUDGET This item involves scheduling a public
hearing in relation to the adoption of the FY12 and FY13 Budget.
Director Laliotis moved, and Director Hemig seconded, that the Board approve the consent
..,, calendar with only item No. 8, Budget Public Hearing.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
ACTION ITEM
CONSIDERATION OF EXTENDING THE CONTRACT FOR THE WATER EFFICIENT
TOILET EXCHANGE PROGRAM This item involves extending the Western Nevada
Supply contract for the Water Efficient Toilet Exchange Program.
Director Laliotis moved, and Director Hemig seconded, that the Board extend the contract
with Western Nevada Supply until December 31, 2011 to include an additional 200 toilets
for a new overall contract amount not to exceed $72,000 plus tax.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
BUDGET
BUDGET PRESENTATIONS:
a) OPERATING/CAPITAL BUDGET: ELECTRIC OPERATIONS
b) OPERATING/CAPITAL BUDGET: WATER OPERATIONS
c) RESERVE FUNDS & REVENUES
Robert Mescher, Steven Hollabaugh and Michael Holley gave a presentation:
• Budget Process Schedule
o September 7: Objectives, goals, and assumptions
o October 5: Overview, Purchase Power Plan, Supporting services budgets
o October 19: Electric and Water operational and capital budgets, Electric and
Water reserves and revenue
2 Minutes: October 19, 2011
o November 2: Financial Master Plan summary, Draft FY12 and FY13 Budget,
Public hearing
o November 16: Adopt the FY12 and FY13 Budget and overhead allocation rates,
adopt the FY12 and FY13 Purchase Power Plan approve the related FY12 and
FY13 budget transfers
• Background / History
o District Code requires the District to prepare a two-year budget
o On September 7, Staff presented the following assumptions:
■ No electric and water rate increases in FY12 and FY13
■ Overall labor rates will be flat in FY12 and increased 3% in FY13
■ Staffing includes a reduction of two employees from the FY11 Budget
■ Most other operational expenses will remain flat or slightly increased from 0%
to 4% per year
■ No new debt
• Electric Department
o Electric Utility revenue
■ No rate increase
■ Budgeted demand decreases in FY12; no change in FY13
■ Electric Utility
■ No material change in year-to-year expenses
■ 2003 COP debt is extinguished in mid-FY12 ($3.4 million annual debt service)
o Electric Operations
■ One less employee
■ Focus will continue on system maintenance, the SCADA Reliability
Improvement Project, and the reliability of Donner Lake substation
■ New construction continues to be slow
o Electric Operations: Comparison of FY11, FY12 and FY13 Budgets (in thousands)
FY12 vs FY13 vs
FYI FY12 FY13 FYI FY12
Operations/PM Sup & Engineering 732 648 673 -11% 4%
Substation Operations/PM 171 186 193 9% 4%
Distribution Operations/PM 11061 11128 11171 6% 4%
Meter Operations/PM 45 31 32 -31% 3%
Customer Installation Operations/PM 157 108 112 -31% 4%
Misc General Operations/PM 391 366 384 -6% 5%
Maintenance of Station Equipment 25 25 26 0% 4%
Maintenance of Distribution Lines 390 404 420 4% 4%
Other Maintenance 27 12 13 -56% 8%
Safety 222 264 275 19% 4%
Other Operational Expenses 14 14 14 0% 0%
Total Operating Costs 39235 31186 39313 -2% 4%1
Capital Expenditures 11636 11850 21675 13% 45°
/o
Tot,411 Expenditures 41871 5,036 5,988 3% 19%
3 Minutes: October 19, 2011
o Electric Department Capital Projects & Equipment (in thousands)
FY12 FYI
Rates
Electric Master Plan Projects $ 300 $ 500
Upgrade Donner Lake Substation - 900
Line & Extension Upgrades 261 285
Routine -Poles, Reclosures, Regulators,Transf, Meters 390 416
Distribution Replacements& Improvements 415 430
Total Rate Funded Projects $ 19366 $ 29531
Facilities Fees
Upgrade Donner Lake Substation $ 450 $ 100
Total Facilities Fees Funded Projects $ 450 $ 100
Replacement Vehicles funded by Vehicle Reserve $ 34 $ 44
Total Electric Projects $ 19850 $ 21675
• Water Department
o Water Utility revenue requirements
■ No rate increase
■ Decreased demand
o Water Utility expenses
■ No material increases in year-to-year expenses
Capital expenditures: Water SCADA program, Water meter installation project,
No main replacement projects in FY12 and FY13
o Water Operations
■ One less employee
■ Less purchased power due to energy efficiency increases, pipeline
replacement, and the conservation effect of water meters
o Water Operations - Comparison of FY11, FY12 and FY13 Budgets (in thousands)
Budget %Variance
FY12 vs FYI vs
FYI FY12 FY13 FYI FY12
Operations Supervision& Engineering 61 113 117 85% 4%
Construction E ng i nee ri ng 57 46 48 -18% 4%
Facilities Operations 611 725 755 19% 4%
Power Supply 19602 1,431 1,474 -11% 3%
Distribution Operations/PM 518 469 487 -9% 4%
Miscellaneous General Operations/PM 308 210 217 -32% 4%
Maintenance of Op Supry& Eng 79 179 187 127% 4%
Maintenance of Facilities 632 741 771 17% 4%
Maintenance of Distribution Lines 604 437 452 -28% 4%
Meter Services & Operations - 141 146 4%
Other Maintenance 15 15 15 2% 0%
Safety 127 98 102 -23% 4%
Interdepartmental Rent 356 358 370 1% 3%
Total Operating Costs 49970 49964 59143 0% 4%
Capital Expenditures 29324 29034 11575 -12% -23%
[Total Expenditures 79294 69998 61718 -4% -4%
4 Minutes: October 19, 2011
r-- o Water Department Capital Projects & Equipment (in thousands)
FY12 FY13
Rates
SCADA $ 19236 $ 800
Total Rate Funded Projects $ 10236 $ 800
Total Facilities Fees Funded Projects $ - $ -
Water Meters Funded by Water Meter Surcharge $ 558 $ 578
Replacement Vehicles funded by Vehicle Reserve $ 240 $ 197
Total Water Projects $ 2,034 $ 19575
• Revenue Requirements
o Comparison of FY12 Budget to FY11 Budget (in thousands)
FYI Budget FY12 Budget-DRAFT %Variance
Electric Water Total Electric Water Total Electric Water Total
Revenue $23,930 $11,370 $35,300 $23,230 $109910 $34,140 .3% -4% -3%
Expenses 189910 71370 269280 199480 7,430 26,910 3% 1% 2%
Income $ 51020 $ 49000 $ 9,020 $ 30750 $ 3,480 $ 79230
Plus:
From Funds $ 700 $ 39870 $ 49570 $ 19470 $ 32610 $ 5,080 110% -7% 11%
Less:
Debt Service 39450 39310 69760 2,540 3,320 59860 -26% 0% -13%
Capital Projects 19660 2,590 45250 2,240 29190 4,430 35% -15% 4%
To Reserves 610 11970 2,580 440 19580 29020 -28% -20% -22%
Surplus(Deficit) $ - $ - $ - $ - $ _ $ _
o Comparison of FY13 Budget to FY12 Budget (in thousands)
FY12 Budget-DRAFT FY13 Budget-DRAFT %Variance
Electric Water Total Electric Water Total Electric Water Total
Revenue $23,230 $109910 $34,140 $23,240 $109910 $34,150 0% 0% 0%
Expenses 192480 71430 269910 199990 71710 279700 3% 4% 3%
Income $ 39750 $ 3,480 $ 79230 $ 39250 $ 39200 $ 6,450
Plus:
From Funds $ 1,470 $ 39610 $ 59080 $ 19150 $ 39300 $ 42450 -22% -9% -12%
Less:
Debt Service 21540 3,320 59860 890 3,320 41210 -65% 0% -28%
Capital Projects 21240 22190 4,430 29890 11720 49610 29% -21% 4%
To Reserves 440 1,580 21020 620 1,460 29080 41% -8% 3%
Surplus(Deficit) $ - $ - $ - $ _ $ _ $ _
5 Minutes: October 19, 2011
• Projected reserve balances
o Electric Department Projected Reserve Fund Balances (in thousands)
FY11 FY12 FY13 FY13
YrEnd Budget Budget YrEnd Goal
(est) Activity Activity Var
Operating Cash Reserve $4,885 $ - $ - $41885 $ 7,000 $(2,115)
Rate Reserve 2,398 284 459 39141 31000 141
Total Operating Reserves $ 7,283 $ 284 $ 459 $8,026 $10,000 $ (1,974)
Capital Replacement Fund $ 126 $ - $ - $ 126 $ 19000 $ (874)
Vehicle Replacement 256 132 129 517 - 517
Total Capital Reserves $ 382 $ 132 $ 129 $ 643 $ 11000 $ (357)
Total Reserves $7,665 1 $ 416 $ 588 $8,669 $11,000 $ 21331)
o Water Department Projected Reserve Fund Balances (in thousands)
FY11 FY12 FY13 FY13
YrEnd Budget Budget Yr End Goal
(est) Activity Activity Var
Operating Cash Reserve $ 3,546 $ (1,553) $ - $ 1,993 $ - $ 1,993
Debt Service Coverage(voluntary) 2,933 655 422 2,700 2,700 -
Total Operating Reserves $ 6,479 $ (29208) $ 422 $ 4,693 $2,700 $ 11993
Capital Replacement Fund $ 3,391 $ 1,499 $ (890) $ 4,000 $4,000 $ -
Reserve for Future Water Meters 549 197 178 924 - 924
Vehicle Replacement 112 101 11 - - -
Total Capital Reserves $ 41052 $ 19595 $ (723) $ 4,924 $4,000 $ 924
Total Reserves $10,531 $ 613) $ (301) $ 99617 $6,700 $ 21917
There was no public input.
Board discussion:
• Are we delaying projects or doing what needs to be done
• The District averaged 6.7 mg per day for water in 200;, the average was 4.6 mg per
day in 2011, showing a reduction of 1.9 mg per day. Does this mean the savings is
$300,000 per year from the base year?
• What happens when reserve goals are exceeded
• In water operations, why is there such a large jump of 127% for maintenance of
operations & supervision
,�- • The 2009 cost of water service study called for a 3% increase for years 2012 and
2013- why don't we need this? Are there less operational costs
• The average per year capital improvement funded through rates was to be 4.8M; by
not doing the capital improvements in the next two years, does that mean we will
need to spend more in 2014 and 2015; is putting off projects bad?
6 Minutes: October 19, 2011
--- • Then the water department is ok by not spending 4.8M on capital projects
• Was there a timeline on achieving reserve goals
• What is the longer range capital plan- 10 years? So 1 M will be used for the Donner
Lake substation
• No rate increase looks good
• If we do pipeline replacement, could we do with existing staff
• What are the variables that go into whether we have cash reserves to do capital
projects
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
There was no reportable action.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 8:30 PM.
T KEE ONNER PUBLIC UTILITY DISTRICT
Jeff er,q vr'e-si dgent
y
Prepared b /,'Oajojc�
a
Barbara Cahill, deputy District Clerk
7 Minutes: October 19, 2011