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Home My WebLink About2010-11-03 Min - Board REGULAR MEETING November 3, 2010 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 perpe- tually 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 6:02 pm in the TDPUD Board room by Vice-President Hillstrom. ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig, John Hillstrom and Tony Laliotis were present. PLEDGE OF ALLEGIANCE Robert Mescher led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT: Bob Mescher, Rosana Matlock, Nancy Waters, Steve Hollabaugh, Michael Holley and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Dan Warren, Juanita Schneider and Kaitlin Backlund CHANGES TO THE AGENDA There were no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Laliotis thanked Dan Warren for running and thanked the community for coming out to vote. Director Hemig reported he went to the Truckee Chamber annual award dinner. The Truckee Donner PUD was nominated for the large business award. Truckee Land Trust received the large business award for the year. Director Hemig also thanked the public for voting. Director Hillstrom congratulated Ron and Tony for keeping their seats, and for Dan Warren running and showing up at the meeting. Director Aguera also congratulated the Directors. President Bender passed on his congratulations to Ron and Tony. He thanked Dan, Sarah and Josh for making the effort to run and be willing to serve on the Board. 1 Minutes: November 3, 2010 CONSENT CALENDAR CON SIDERATION OF THE APPOINTMENT OF GENERAL MANAGER AS THE LABOR NEGOTIATOR TO NEGOTIATE WITH THE DISTRICT'S UNREPRESENTED EMPLOYEES. Terms and Conditions of Employment for the Unrepresented Employees of the District. CONSIDERATION OF THE RETENTION OF UNCLAIMED FUNDS This item involves the retention of funds unclaimed by payees. CONSIDERATION OF THE ANNUAL IDENTITY THEFT PREVENTION POLICY This item involves review of the Identity Theft Prevention Policy. CONSIDERATION OF AN AMENDMENT TO THE FRINGE AGREEMENT WITH SIERRA PACIFIC POWER This item involves the First amendment to the Fringe Agreement with Sierra Pacific Power Company. Director Ag uera moved, and Director Hillstrom seconded, that the Board approve the consent calendar. ROLL CALL: All Directors aye, by voice vote. SO MOVED WORKSHOP DONNER LAKE ASSESSMENT DISTRICT ANNUAL LEVY PAYMENT STATUS This item involves a recap of the debt status of the Donner Lake Assessment District. Bob Mescher gave a presentation: • The Donner Lake Assessment District (DLAD) o Purchased of the Donner Lake water system from the Del Oro Water Company o Replaced the majority of the Donner Lake water system • In 2001, liens placed on parcels in DLAD o Property owners in both Nevada and Placer Counties o Annual levies on property tax bills beginning 2001 and ending 2021 • Nevada County sends 100% of amount assessed o Nevada County carries the delinquencies, but reserves the right to reclaim delinquent amounts o Placer County only sends collected funds • District uses Willdan Financial Services to administer the annual levies including sending out delinquent notices • Annual Assessment o Nevada County $760,000 (1,500 parcels) o Placer County $ 74,000 (150 parcels) • Delinquencies o Nevada County Properties Tax Year Amount Past Due # of Parcels 2005/06 $1,625.40 3 2006/07 $3,287.88 7 2007/08 $9,100.35 19 2008/09 $12,445.03 25 2009/10 $22,831.53 46 Total Nevada County Past due $499290.19 2 Minutes: November 3, 2010 o Placer County Properties Tax Year Amount Past Due # of Parcels 2003/04 $497.54 1 2004/05 $496.94 1 2005/06 $1,058.00 2 2006/07 $1.071.72 2 2007/08 $1.347.95 3 2008109 $2.091.98 4 2009/10 $3.242.74 7 Total Placer County Past due $99806.87 Public input: • Wasn't all of Donner Lake pipeline replaced- not just the majority Board discussion: • How does the Teeter method work with delinquencies as they grow- or is this just Nevada County parameters • Is it just at the Nevada County discretion how they collect the delinquencies- is it the 5 year limit and then they do a foreclosure process • Of one day, Nevada county decided they wanted the money from us for the delinquen- cies, how much notice would they give us The Donner Lake Assessment levy is on the tax bill- do they become delinquent because the entire tax bill is not paid, or just the Donner Lake portion How do we recoup delinquent assessments • How often do owe make payment to the Donner Lake Assessment District loan The loan is from the State Revolving Fund- a 20 year loan • Do we have a rate reserve to allow us to pay the Nevada County obligation if they recalled the funds • When is the 20 year loan complete GLENSHIRE SURCHARGE STATUS This item is a recap of the debt status of the Glenshire water system. Bob Mescher gave a presentation: In 2002, the District acquired the Glenshire Mutual Water Company (GMWC) $3 million of capital improvements were required o Pipeline extensions and replacements o Pumping capacity increase at Glenshire Drive Well o Well abandonment and other system upgrades GMWC customers agreed to reimburse the District for these costs The GMWC transferred all assets (cash and land) to the District o GMWC cash and land sales proceeds used to offset some of the capital improve- ment costs District financed a portion of the upgrade cost o $19740,000 15 year external loan o $246,000 internal loan To pay off the external loan, Glenshire customers are assessed a $10.75 surcharge on their monthly water bills - surcharge is projected to end in 2017 3 Minutes: November 3, 2010 d sales lease proceeds and surcharge proceeds were used to extinguish the • Lan internal loan • Surcharge and land lease proceeds o Proceeds ■ $10.75 per month billing surcharge since 2002 $1,508,918 ■ Lease proceeds from Glenshire fire Station 4- ■ Total Proceeds $1,523,383 o Uses 591 ■ Principal & interest payments-$1,740,000 loan (9/30/10) $1,232,48 5 ■ Surcharge proceeds to extinguish internal loans , ■ Total Uses $1,326,076 76 o Fund Balance $ 197,397 o External Loan Balance ■ Principal balance on -$1,740,000 loan at 9/30/10 $1,005,389 Loan established November 2002, 15 years, 5.11% interest • In February 2009, internal loan was extinguished with the sale proceeds of the southern portion of the Glenshire Drive parcel and $33,000 of the accumulated surcharge • One remaining parcel, the northern portion of the Glenshire Drive parcel, was marketed for sale in 2009, but was removed from the market o Currently leased to the Glenshire Fire Station o Market for sale again in 2011 Public input: • With the loan at 5.11% 10 years ago, should it be refinanced Board discussion: So the cost to refinance would be around a $40,000 fee • What is the $197,397 balance for- principal and interest payments • Why keep the $197,397 on hand-seems like a lot of money to have in an account • When was the internal loan paid • Is the $197,397 being used to pay this year's principal and interest payments • A Director asked Dan Warren, as a representative of Glenshire, if the property sold, what would the residents want to do: loan retire earlier or retire the surcharge. Mr. Warren said he had not been given any direction yet, but intends to take this information to the next Glenshire Homeowners meeting. • What is the principal and interest per year • Does the lease income for a year make a difference • What is the prepayment penalty on the loan • A view on the market for selling the property is both positive and negative: Glenshire area is not getting better as it has bank related sales, but lending side has a better chance because rehab loans are available which are then can turn into regular loans • How many customers are paying the surcharge in Glenshire • Spoke to people in Glenshire during the campaign and they thought the payment would decrease versus retire the debt sooner • Wouldn't it save the District time and effort to retire the debt sooner • But then people may want lower bills- look forward to Dan Warren's input • If land sells at $400,000, it could pay off sooner or reduce surcharge 4 Minutes: November 3, 2010 • Seems there are two choices if property is sold: pay down loan and refinance or take ,...,, funds and adjust the surcharge • The $197,397 in the fund is like accumulating a year of payments • If don't pay off debt for a couple years, the prepay penalty would be less than $40,000 • When property sells, reconsider and have input from the Glenshire residents CLOSED SESSION Closed Session Pursuant to Government Code Section 54957.6, Conference with Labor Negotiator. District Representative: Michael D. Holley; Unrepresented Employees 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 6:58 PM. TRUCKEE DO ER PUBLIC UTILITY DISTRICT Je Be r, President Prepared by Barbara Cahill, Deputy District Clerk r- 5 Minutes: November 3, 2010