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Home My WebLink About2012-07-18 Min - Board REGULAR MEETING July 18, 2012 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 6:01 PM in the TDPUD Board room by President Laliotis. ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig, and Tony Laliotis were present. PLEDGE OF ALLEGIANCE Director Bender led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT Bob Mescher, Rosana Matlock, Nancy Waters, Steven Poncelet, Ian Fitzgerald, Neil Kaufman, Michael Holley and Barbara Cahill CONSULTANTS PRESENT Steve Gross OTHERS PRESENT Juanita Schneider, Pat Davison and Scott Parker CHANGES TO THE AGENDA General Manager Holley stated there are no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Bender said he could not attend the ribbon cutting of the new Tahoe Forest Hospital Cancer Center on Tuesday. He encouraged everyone to go see the center. Director Hemig stated there was no Municipal Financing Authority (MUFA) meeting in June or July. The bond market is not very friendly right now. Director Laliotis said he did not attend the NCPA June commission meeting. CONSENT CALENDAR CONSIDERATION OF DECLARING VEHICLES SURPLUS This item involves declaring vehicles surplus. CONSIDERATION OF ADOPTION OF THE CEQA NEGATIVE DECLARATION FOR 2012 WATER MASTER PLAN UPDATE This item involves adoption of the CEQA Negative Declaration for the 2012 Water Master Plan Update. 1 Minutes: July 18, 2012 --- CONSIDERATION OF ADOPTING THE 2012 WATER MASTER PLAN UPDATE This item involves adopting the 2012 Water Master Plan Update. CONSIDERATION OF THE PURCHASE OF SOFTWARE FOR THE WATER SCADA PRO- JECT The item involves the purchase of Windows Server 2008 R2 and Wonderware software to support Water SCADA. Director Bender moved, and Director Hemig seconded, that the Board approve the con- sent calendar. ROLL CALL: All Directors aye, by voice vote. SO MOVED ACTION ITEMS CONSIDERATION OF APPROVING THE 2012 PIPELINE REHABILITATION PROJECT This item involves conducting a pilot project to install a structural liner in an existing water pipeline. Director Hemig moved, and Director Aguera seconded, that the Board authorize the General Manager to sign the contract with 3M; and authorize the transfer of up to $35,000 from the Water Department Capital Replacement Fund to the Water Department General Fund to cover the cost of the project. ROLL CALL: All Directors aye, by voice vote. SO MOVED WORKSHOPS MID-YEAR BUDGET REVIEW OF THE DISTRICT'S FINANCIAL PERFORMANCE This item concerns providing the Board of Directors with a review of the financial activity and performance of the District's operations through June 2012. Bob Mescher gave a presentation: • FY12 — FY13 Budget approved November 16, 2011 • District Code requires semi-annual budget report comparison to actual results o Mid-year review in July 2012 o Year-end / mid-cycle review in February 2013 o Mid-year review in July 2013 o Year-end / end-of-cycle review in February 2014 • FY12 Electric & Water Budget Electric Water Total Operating Revenue $23,208,496 $10,856,132 $34,064,628 Expenses (19,482,827) (7,432,858) (26,915,685) Operating Income $ 3,725,669 $ 3,423,274 $ 7,148,943 Transfers In from Other Funds 1,483,309 3,660,139 5,143,448 Transfers Out to Other Funds (2,973,230) (4,899,3701 (7,872,600) Capital Projects (2,236,748) (2,184,043) (4,419,791) Total $ - $ _ I $ - 2 Minutes: July 18, 2012 • Electric Operating Revenue as of June 30, 2012 Projection 12 Mo YTD % of %of Budget Actual Budget End of Yr Budget Residential $ 12,308,431 $ 6,644,346 53% $ 11,940,000 97% Commercial 8,973,815 4,462,362 50%0 8,700,000 97% Interdept. Sales&Rent 1,551,739 684,074 44% 1,490,000 96% Standby 26,480 - 0% 26,400 100 Other 349,031 143,744 41% 329,600 94% Total $ 23,208,496 $ 11,824,617 51%a $ 22,485,000 97% • Electric Operating Expenses as of June 30, 2012 Projection 12 Mo YTD %Of % Of Cost Center Budget Actual Budget End Of Yr Budget Board of Directors $ 103,539 $ 46,450 45% $ 103,500 100% General Management 539,142 279,172 62% 639,000 100% Administrative Svcs. 1,430,323 737,083 52% 1,410,000 99%Q Public Info.& Consrv. 1,412,007 550,687 39%Q 1,412,000 100% Operations 3,186,748 1,406,062 "% 3,185,600 100% Power Supply(GISj 633,402 256,358 40% 608,000 96% Building Maintenance 611,366 193,215 38% 511,000 100% Purchase Power 11,667,301 4,803,223 41% 10,500,000 90% Total $ 19,482,827 $ 8,271,250 42°la $ 18,269,000 94% • Electric Capital Expenditures as of June 30, 2012 Projection 12 Mo YTD % of % of Source of Funds Budget Actual Budget End of Yr Budget Rates 1,751,639 987,797 56% 1,761,000 100%n Facilities Fees 460,000 23,524 5% 75,000 17% Vehicle Reserve 34,109 - 0% 34,000 100% Total $ 2,236,748 $ 1,011,321 46% $ 1,860,000 83% • Water Operating Revenue as of June 30, 2012 Projection 12 MO YTD % Of % of Budget Actual Budget End of Yr Budget Residential $ 8,649,479 $ 4,117,034 48%fl $ 8,369,000 98% Commercial 1,196,666 540,819 45%a 1,260,000 106% Meter Reserve Surcharge 752,100 373,268 50% 762,000 100% Standby&Fire Protection 161,040 - 0% 161,000 100% Other 197,848 103,994 53% 210,000 106% Total $ 10,856,132 $ 5,135,105 47% $ 10,742,000 99% 3 Minutes: July 18, 2012 • Water Operating Expenses as of June 30, 2012 Projection 12 Mo YTD % of % of Cost Center Budget Actual Budget End of Yr Budget Board of Directors $ 103,539 $ 46,833 44% $ 103,500 100% General Management 436,519 219,849 50% 436,500 100% Administrative Svcs. 1,284,121 684,848 46% 1,210,000 94% Public Info.&Consrv. 337,432 112,572 33% 337,000 100% Operations 4,964,099 2,354,423 47% 4,766,000 96% Power Supply(GIS) 307,148 140,513 46% 295,000 96% Total $ 7,432,868 $ 3,458,037 47!l. $ 7,148,000 96% • Water Capital Expenditures as of June 30, 2012 Projection 12 Mo YTD % of % of Source of Funds Budget Actual Budget End of Yr Budget Rates 1,386,260 235,786 17% 845,000 61% Pipeline Replacement - 156,719 0% 157,000 0% Vehicle Reserve 239,750 156,236 66% 157,000 66% Future Water Meters 558,043 197,568 35% 560,000 100% Total $ 2,184,043 $ 746,298 34% $ 1,719,000 79% • No budget adjustment recommended at this time • At year-end, net operating revenue in excess of budget will be available for project carry-overs and reserve increases There was no public input. Board discussion: • On course- below budget YTD- doing well • Good job • Regarding power, Horse Butte Wind Project should be starting any day now. This will increase power supply expenses. Is this component part of the comparison and part of the report? • Would like to more pieces of information added to the mid year and finial reports: o Comparison of full time employee expense to budget o Number of new customers for both water and electric. Does it match the expected budget growth? • Did May water revenue projections meet the budget? Irrigation started early this year • Where are personnel costs- are they under operations or in various departments 4 Minutes: July 18, 2012 DISCUSSION REGARDING A POLICY TO HANDLE COMPLAINTS ABOUT THE DIS- TRICT'S BOARD This item involves adding a policy to the District Code, as recom- mended by the Nevada County Grand Jury, for handling complaints about the Board. Steve Poncelet gave a presentation: • Board responded to 2012 Nevada Co. Grand Jury Report o June 61h Board meeting o Formal response sent June 8th • Board agreed to implement new policy for handing formal complaints regarding Board members o Addresses Grand Jury's Recommendations R2, R3, and R4 o Agreed to implement recommendations within 120 days • Goals of DRAFT Board complaint policy o Will be added to District Code ■ Title 2, Administration, Chapter 2.62 o Reiterates the importance of public engagement in District's activities o Open and transparent o Strives to protect the interests of all parties involved in a complaint ■ Requires no retaliation o Meets or exceeds the recommendations of the Grand Jury • Major sections of DRAFT Policy include: o Filing a Complaint ■ Must be submitted in writing to the General Manager or a Board Member ■ Must be specific in nature with facts and circumstance • Supporting evidence that that a Board member has or is violating District Code or any local, state, or federal law o Acknowledgement and Notification ■ District will acknowledge to complainant in writing within 10 days ■ District's Board will be notified of the complaint and given a copy of the com- plaint ■ Subject(s) of the complaint will be informed of the specific nature of the allega- tions and given an opportunity to respond ■ Parties involved in the complaint will not be subject to any form of retaliation or reprisal from the District o Investigation ■ General Manager and legal counsel will conduct preliminary investigation within 30 days ■ Determine if the complaint meets the requirements ■ Determine if the complaint falls under the jurisdiction of the District ■ Review the complaint with the Board President ■ District's Board President is authorized to direct the General Manager and legal counsel to further investigate the complaint ■ Including hiring an outside investigator, if appropriate ■ Right to refuse or terminate investigation by Board President: ■ Complaint is not in writing or signed by complainant(s); ■ Complaint is not within the jurisdiction of the District; ■ Complaint is frivolous, vexatious, or made in bad faith; ■ Complaint does not contain reasonable grounds or adequate evidence to ini- tiate an investigation; or 5 Minutes: July 18, 2012 ■ Complaint is the subject of any investigation by an administrative agency or the subject of any pending litigation o Resolution of Complaint ■ Upon completion of the investigation ■ District's Board will be informed of the results and determine the resolution ■ Resolution shall, at a minimum, include sending a written response to the com- plainant describing: ■ Summary of complaint; ■ Summary of the District's preliminary investigation and any additional rele- vant information; and ■ Summary of any action that has been or may be taken with respect to the complaint There was no public input. Board discussion: • Good draft- follows a logical path- sums up what we did and put it in writing • Can an employee of the PUD also be a customer and follow this procedure? How would this be handled? Wouldn't this conflict with the union grievance process and rights? • Imagine this entire process would be handled during open session • Want to make sure to protect the rights of individuals. • Say a strong complaint comes in of a criminal nature about one of the board people, - and so now we are discussing this. There is no investigate yet, we are just discussing as an initial complaint. It evolves into something that may later go to investigation or may wind up a criminal matter. Here we have done our own investigations and proba- bly made some kind of conclusions that could set up an issue for that individual or for the Board. So is there any exposure there? This is a case where nothing else has happened to this point, we are handling the complaint. • Policy statement "Not within the jurisdiction of the District" had a lot to do with the case about John Hillstrom because we did not think it was within the jurisdiction of the District. • Responded to should read "transparent, timely and fair' • Good to have this in writing now. • Have not had many director complaints in the past, but the ones we have had, we have followed this procedure, but just did not have it in writing • Like the idea that it has to be a written formal complaint • Question the notification process. The District receives the complaint, investigates, and notifies the complainant of results of the investigation at the end. Is this sufficient to satisfy the Grand Jury recommendation that District Code be amended to notify the complainant of the disposition of the complaint. And if the investigation is lengthy or ongoing, there should be a periodic update to the complainant. Rather than just wait- ing until the end of the investigation. • Inform the complainant periodically that the investigation is continuing. This adds to the open and transparent process. Keep the complainant in the loop. • If something takes its course and there is a resolution in 30 days that is sufficient time to notify the complainant of the results. However, a statement could be added that if 6 Minutes: July 18, 2012 something goes beyond 30 days, the District will inform the complainant of the disposi- tion of the complaint saying it is ongoing or resolved. • The draft policy meets the intent and protects the Board from dealing with frivolous complaints, complaints without merit and puts responsibility, if outside the jurisdiction of the District, to either notify or move the complaint to a different venue ROUTINE BUSINESS TREASURER'S REPORT Approval of the fund balances as of May 31, 2012: Director Bender moved, and Director Aguera seconded, that the Board approve the treasurer's report for the month ended May 31, 2012. ROLL CALL: All Directors, aye. SO MOVED. Approval of disbursements for June 2012 Director Aguera moved, and Director Hemig se- conded, that the Board approve the June 2012 disbursements report. ROLL CALL: All Directors, aye. SO MOVED. APPROVAL OF MINUTES FOR JUNE 6, 2012 Director Hemig moved, and Director Bender seconded, that the Board approve the minutes of June 6, 2012. ROLL CALL: All Directors, aye. SO MOVED. CLOSED SESSION Director Bender recused himself from Closed Session Item No. 16 due to a potential conflict. General Counsel Steve Gross recused himself from Closed Session Item No. 16 because the firm Porter Simon represents one or more of the potential defendants. AGENDA NO. 16- CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9, SUBDIVISION (C), DECIDING WHETHER TO INITIATE LITIGATION, MULTIPLE CASES PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION 54957 (E): GENERAL MANAGER PERFORMANCE PLAN REVIEW 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 8:16 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Tony Laliotis, President w Prepared by Barbara Cahill, Deputy District Clerk Minutes: July 18, 2012