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Home My WebLink About2010-09-01 Min - Board REGULAR MEETING September 1, 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 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 6:07 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 Tony Laliotis led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT: Kathy Neus, Rosana Matlock, Stephen Hollabaugh, Steve Trevino, Steven Poncelet, Nancy Waters, Michael Holley and Barbara Cahill CONSULTANTS PRESENT: Steve Gross and Steve Itelson OTHERS PRESENT: Juanita Schneider, Dan Warren, Sara Trebilcock, Josh Susman, Adelle Gonzalez, Lilly Hatch, Lynn Larson, Katlin Johnson, Bill McGllashan, Joel Erickson and two members of the public. CHANGES TO THE AGENDA There were no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Hemig reported that he attended the UAMPS conference in Susanville and also attended a Municipal Finance Authority meeting. We are working on the idea and concept of making a large prepaid gas purchase for our Payson Plant. Learned couple things — scope of this effort is quite large- possible we could look at prepaid purchase in the $200M or more range- pro rata shared with other UAMPS polling group. The potential is a savings in the range of 10 to 20%. Conditions have to be right and opportunity needs to be there. Separately, in case you saw the news item about Loyalton Biomass closing and you think the PUD should be able to jump in there; it does not work that way. There is a long term contract with Sierra Pacific/NV Energy. President Bender stated he would like to attend the California LAFCo meeting in early October, but there is a conflict.with the first TDPUD Board meeting on October 6. He would 1 Minutes: September 1, 2010 like to request moving the meeting to a different day. President Bender wanted to note that the roof project is nearly done with the added insulation. Earlier this year an energy audit was performed on the headquarters building. President Bender would like to request a workshop in December to look at other possible energy saving measures we can do on this building. Director Hemig asked to pull agenda item No. 7, "Appoint General Manager as Negotiator for Sale of District Real Property" from the Consent Calendar. The Board meeting about the McGlashan property was in the past and the new directors may not recall the discussions. Pat Sutton always held this property near and dear, and opposed the PUD doing anything with the land. We need to take all this into consideration. CONSENT CALENDAR CONSIDERATION OF AWARDING A CONTRACT FOR THE PURCHASE LED HOLIDAY LIGHTS This item involves the annual purchase of LED Holiday Lights. Director Hillstrom moved, and Director Aguera seconded, that the Board approve the consent calendar. ROLL CALL: All Directors aye, by voice vote. SO MOVED ACTION ITEMS CONSIDERATION OF APPOINTING THE GENERAL MANAGER AS NEGOTIATOR FOR SALE OF DISTRICT REAL PROPERTY The appointment of a District Negotiator as it relates to the Sale of District Real Property. Counsel Steve Gross recused himself because Porter Simon does legal work with a counter party of this transaction. Public input: • Future preservation of this Truckee resource • The interest goes back a long time: historic, cultural, biologic • Potential for open space and trails • Fuel reduction is needed • There are a lot of unique plants • Exciting to know the PUD will protect the property for future benefit of the community • Excited of the possibility that this property will be preserved • Property of great historic value • Six years ago, a TDPUD meeting was held on sight to hike through this area • The property is within the Town of Truckee boundary • Has such an assembly of plants- with some plants the only ones around now • Happy and excited • Area has such a biologic richness, historic aspects, ideal to tie in trails and preserve for the people of Truckee • Diverse area, appreciate the uniqueness of the parcel, great place • Two concerns: transferring ownership to private entity- not clear what happens in the future- important to consider selling with a conservation easement- preserve in 2 Minutes: September 1, 2010 perpetuity and not exploit and second, trail from Tahoe Donner as a part of the Rim Trail- allow people to enjoy. • Any time a public agency can join with another entity to preserve open space- that is a good thing- move in the direction to preserve for all of us • Tahoe Donner are good stewards • Have same concerns- make a part of the sale a conservation easement or make X zone so the intent of conservation is not lost in future generations Director Hemig moved, and Director Aguera seconded, that the Board appoint the General Manager as the District's negotiator concerning Nevada County APN 18-010-10, 10750 Bermgarten Road. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF AWARDING CONTRACTS FOR THE ENERGY SURVEY PRO- GRAM AND THE RESIDENTIAL ENERGY SURVEY PROGRAM This item involves: a) FRC Renewal Contract for the ESP Program b) SIGBA Renewal Contract for the ESP Program and new Residential Energy Survey Program General Manager Michael Holley recused himself because he is on the board of the Family Resource Center. He checked with legal counsel and there is no direct conflict, but will recuse just in case. Director Laliotis moved, and Director Aguera seconded, that the Board award a contract to Family Resource Center (FRC) for an amount not to exceed $14,500 and award a contract to Sierra Green Building Association (SIGBA)for an amount not to exceed $30,000. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF AN AWARD OF CONTRACT FOR VEHICLE PURCHASE & SURPLUS OF EXISTING VEHICLE This item involves considering an award of contract for a electric line truck purchase and the surplus of an existing vehicle. Director Hillstrom moved, and Director Aguera seconded, that the Board: • award the purchase of the Altec Model # D3055-A Line Truck in the amount of $312,175.22 to Altec Industries, Inc. • declare Line Truck, Unit#10, as surplus • authorize transfer of up to $312,175.22 from the Electric Department Vehicle Replacement Fund to the Electric Department General Fund ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF A REVISION TO THE POWER SALES CONTRACT FOR THE UAMPS WIND PROJECT AT HORSE BUTTE This item involves revision of the entitlement share for the UAMPS Wind Project at Horse Butte, Idaho. Director Laliotis moved, and Director Aguera seconded, that the Board approve resolution (2010-XX) authorizing and approving the increased subscription to Horse Butte Wind Project Power Sales Contract to 15,000 kW with Utah Associated Power Systems and related matters in substantially the form attached. ROLL CALL: All Directors aye, by voice vote. SO MOVED 3 Minutes: September 1, 2010 WORKSHOPS CALPERS- ACTUARIAL PRESENTATION REQUIRED FOR THE EMPLOYEE-FUNDED 2.7% @ 55 PLAN AMENDMENT This item is a Government Code requirement explain- ing future costs of this contract amendment Nancy Waters started a presentation and consultant Steve Itelson participated: • Background / History o District contracts with California Public Employees' Retirement System (CaIPERS) for employee's retirement o Employees voted in favor of increasing formula o Employees will pay all increased costs o Board approved the CaIPERS Resolution of Intent to amend contract at the July 21st meeting • New Information o Government Code requires a Board presentation by an Actuary to explain impact of amendment on future costs o Mr. Steven Itelson, an independent actuarial consultant will make a presentation tonight on the proposed amendment • CaIPERS Valuation Results o Current contribution rates: TDPUD 17.086%, Employees 7.0% o Employees actual new contribution rate: TDPUD 17.086%, Employees 15.908% o AAL (present value of past service benefits): Increase from $15 million to $18 mil- lion • CaIPERS Assumption Changes o Retirees live longer o Higher salary increases, earlier retirement o Estimated typical cost increases ■ - 2.7% @ 55 plans - 1.1% to 1.7% ■ - 2% @ 60 plans - 0.4% o In January, cost difference will rise 0.7% to 1.3% • CaIPERS required steps for contract amendment o Resolution of Intent—July 21 st o Employee Vote —completed in July o Actuarial Presentation —tonight's workshop o Adoption of final resolution — September 15th meeting • Fiscal Impact o No additional cost to the District for the plan amendment o Employees are paying additional costs o CaIPERS assumption increases are built into FY11 budget Public input: • How many PUD employees will be eligible for the new plan • Unfunded liability- as employees start to retire, won't this be an increase to the em- ployees staying or the new hires- new employees will bear the burden '`�'` • There should be a discussion about Gov Code 20903 which allows the District to give a 2 year service credit at the point of retirement • Look at all extended consequences- future employees pay for this 4 Minutes: September 1, 2010 • How long does it take before an employee is vested to be in the retirement plan Board discussion: • What percent do the employer and employee usually pay other plans • Is it rare for a plan to have the employer and employee pay 50% each • Is the 50/50 split a concern • The 50/50 split put the PUD in a unique situation • Mostly positive consequences • Some people can now retire and PUD could get younger people with skills • Net zero affect to the District financials • What would a person get at 5 years if they retire • Would future employees be scared off by the pay back amount DISCUSSION OF THE NEIGHBORHOOD FOCUSED CONSERVATION OUTREACH PROGRAM This item involves collaborating with other local agencies to take agency programs into a targeted neighborhood. Steven Poncelet gave a presentation: • District seeks innovative, cost-effective ways to deliver programs o Collaborate with other agencies/partners o Leverage resources o Maximize community impacts Delivering programs and services direct) to neighborhood ' Y a o Concept started when developing ESP and RES o Evolved to a `bundle' of programs and services o Evolved to a `bundle' of agencies • "Public Services Together......One Neighborhood at a Time" o District, Town of Truckee, Nevada County, Truckee Tahoe Airport District o Neighborhood specific, one-day event o Each agency brings existing programs and services ■ ESP/RES (surveyors on-hand) ■ Lighting give-a-ways ■ Water-Efficient Toilet Rebate Program ■ Information on water meters, customer leaks, and the Customer Leak Repair Rebate Program o `Block-party' format with BBQ o Olympic Heights Neighborhood ■ Chosen for pilot event - Size, age of housing, occupancy ■ Floriston Court (between Olympic and Highland) ■ Saturday, September 18th from 9AM-1 PM ■ Direct-mail, door-hangers, and banners ■ Reaching out to neighborhood partners ■ Opportunity for Board to participate Total direct costs of event estimated at-$2 500 o Shared between District, Town of Truckee, and Nevada County o Sufficient funds exist within the FY10 budget for this item 5 Minutes: September 1, 2010 Public input: • Out of the box thinking • Amazed at the number of people who do not know about PUD programs • Great venue • Interested in feed back Board discussion: • Brilliant idea- both ancillary and direct benefits • Could affect 40 to 50 households • Impressed that the PUD got the County and Town involved • If this is a wild success, could another one be scheduled for this year • Good thing- one neighborhood at a time • Olympic Heights is an established neighborhood with a lot of full time residents • Great value • Even with all the mainstream marketing, people are still unaware of the programs • Good way to touch a demographic • There is a creative environment in the PUD- great way to get people engaged and informed Counsel Gross reminded that if Board members attend the event, they should have no Board discussions- remember the Brown Act. ROUTINE BUSINESS Treasurer Report: July, 2010 Approval of the Treasurer's report through July 31, 2010: Director Aguera moved, and Director Laliotis seconded, that the Board approve the treasurer's report for the month ended July 31, 2010. ROLL CALL: All Directors, aye. SO MOVED. Approval of the Disbursements for July 2010: Director Aguera moved, and Director Hemig seconded, that the Board approve the July 2010 disbursements report. ROLL CALL: All Directors, aye. SO MOVED. CLOSED SESSION CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO SECTION 54956.8 OF THE GOVERNMENT CODE. PROPERTY; MCGLASHAN SPRINGS PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION 54957 (E): GENERAL MANAGER PERFORMANCE PLAN REVIEW CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9(C), DECISION ON WHETHER TO INITIATE LITIGATION, TWO CASES. 6 Minutes: September 1, 2010 RETURN TO OPEN SESSION Report from Closed Session CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO SECTION 54956.8 OF THE GOVERNMENT CODE. PROPERTY; MCGLASHAN SPRINGS PUBLIC EMPLOYEE PERFORMANCE No reportable action. EVALUATION - GOVERNMENT CODE SECTION 54957 (E): GENERAL MANAGER PERFORMANCE PLAN REVIEW No reportable action. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9(C), DECISION ON WHETHER TO INITIATE LITIGATION, TWO CASES. By unanimous roll call vote, the Board approved a motion to authorize General Counsel to initiate litigation in the form of interpleader actions in two actions involving the 2009 Pipeline Replacement project: • one case involving the District's prime contractor Hunt's Excavation and its creditors • and the other case involving the District's prime contractor Cruz Excavating/Zephyr Companies and it creditors. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 11:10 PM. TRUCKEE D R PUBLIC UTILITY DISTRICT J ff Ben sident Prepared b p Y (1A) Barbara Cahi Deputy District Clerk 7 Minutes: September 1, 2010