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Home My WebLink AboutBoard Wkshop #5 Feb 22nd Presentation (2) Strategic Virtual Zoom Meeting7:00 pm-4:00 p.m.2021February 22, Board Workshop #52021-TDPUD 2020 PlanningBusiness Expectations 2 Governance Model Introduction of Environmental Social Governance Model Introduction of Environmental Social Application of Cash Cow ModelApplication of Cash Cow ModelOther Opportunities for FundingOperating Expense/Capital Expenditure23 Budget-Incremental Drivers for 2022Funding Alternatives: Other Opportunities for FundingOperating Expense/Capital Expenditure23 Budget-Incremental Drivers for 2022Funding Alternatives: Ideas and Discussion for Board Initiative Next StepsIdeas and Discussion for Board Initiative Next StepsFocus on Goals, Initiatives, Capital ProjectsFocus on Goals, Initiatives, Capital Projects for Workshop #5 3 TDPUD 4 PillarsPlanning Strategic Board Goals 2024-2021 Language and Vocabulary Capital ProjectsCapital ProjectsIncluded in the Budget•Can be ongoing multiple year projects•Initiatives Initiatives revenue stream Are usually not included in the budget & have no •Usually validated by the community•Board Initiated•6 Board Initiatives:5.4.3.2.1.2024-Board Goals 2021 integration and successDeveloping an inclusive culture drives organizational utility and add value to our communitiesTake the best of private sector thinking to modernize the welcoming and transparent way to identify opportunitiesEngage with our customers and communities in a resilient environment for all our communitiesEnvironmen tal Stewardship: Create a sustainable, Manage for Financial Stability and Resiliency 7 hydro or biomass energysolar, -Clean Power Generation100% Clean Renewable by 2027High Speed BroadbandPower LinesUndergrounding of Overhead Nesting 8 Staff RecommendationsSynthesis to Application our GoalsProjects Under Capital Initiatives and Goal # 1 9 All $ amounts are current planning estimates•average per yearTank and Well Replacements/Rehabilitations (annual) $1.1m •Pump Replacements, 8 per year (2021/2022/2023) $1.3m/year•$2.1m/year 8” Water Main Replacement, ~3000’ per year (2021/2022/2023) •New Pipeline Projects(4) (2022) $1.5m•Connection Pipeline (2022) $400kHirschdale•Generators at four locations (2021) $2.4m•Pump Station Replacement (2021) $800kMartiswoods•efficiencyaddress water quality, pressure, fire flow, and operational –Water Projects Wildfire Mitigation Strategy)Energy Limiting Fuses (phases each year, ~$300k per year) (part of •Valley Substation Updates (2023) $500kMartis•02 Rebuild (2022) $600k-TR•Address Power Reliability-•Substation (2022) $2.1mGlenshire•Truckee Substation Rebuild (2021) $1m to complete•Electric Projects: Address Power Reliability Key Goal Related Capital Projects:Board Initiative: Undergrounding of Overhead Power Lines Stability and Manage for Financial Goal #2:10 Green Rate (live in 2021)•Other Projects:Corp Yard Project (2022/23) $2m–Facility Master Plan •HQ Project (2021/22) $2m–Facility Master Plan •New 12” Water Pipeline (2024/25) $4.3m•6170 Tank (2022) $4m-New Water Tank •(also on GOAL #1 list)Emergency Generators (2021) $1.9m •Capital Projects:Clean Power Generation, solar, hydro or biomass energy•100% Clean Renewable •Board Initiatives:for all our communitiesresilient environment Create a sustainable, Stewardship Environmental Goal #3 11 Water GHG Inventory Reduction o Water quality o Water Loss Performance Standards o(Red Mesa)current and known upcoming –free mix -Renewables, carbon o Wildfire prevention/awareness campaign o notice of achieving Diamond, expected in March 2021)APPA RP3 Diamond certification in power reliability (pending o Educate CommunityProjectspartnership with other agencies–Fuel Station Legacy Trail EasementsWorkforce HousingExploration Projects identify opportunitiestransparent way to welcoming and communities in a customers and Engage with our Goal #4 12 service (2022) $200kConsulting & Legal Services for Broadband community ▪other (2022)wholesale, retail, –RFP for Service Proposal Options ▪•Phase 3/Final (2024) | $1.2m perPhase 1 (2022), Phase 2 (2023), –Fiber Ring Completion ▪Capital Projects:•communityExplore high speed internet/broadband for our ▪communitiesand add value to our modernize the utility sector thinking to Take the best of private Goal #5: Developing an inclusive culture 6. APPA Safety Award of Excellence Program6. APPA Safety Award of Excellence Program5. Annual Employee Cultural survey5. Annual Employee Cultural survey4. Quarterly Employee Engagement Meetings4. Quarterly Employee Engagement Meetings3. Community Service Projects3. Community Service Projects2. Marrying Values to Culture Definition2. Marrying Values to Culture Definitioncollaboration)functional projects -collaboration)functional projects -Projects:Projects:13 drives organizational integration and success Board Discussion 14 TDPUD 15 Perspective Workshop #5Planning Strategic Expenditures (cash outflows) Types 1611/8/2021Financial Perspectives-2/22/2021 Strategic Plan Workshop are from one reserve to another, net zero outflow–Transfers principal and interest payments–Debt Service $10,000 \[DC 3.10\]useful life at least 2 years and minimum cost of –Capital supplies, parts, repairsMaintenance (O&M)), includes payroll, purchased power, 1 year or less period of benefit (Operating and –Expense 2/22/2021 Strategic Plan Workshop 1711/8/2021Financial Perspectives- 2/22/2021 Strategic Plan Workshop 1811/8/2021Financial Perspectives- 2/22/2021 Strategic Plan Workshop 1911/8/2021 Electric Financial Perspectives- Electric 2011/8/2021Financial Perspectives-2/22/2021 Strategic Plan Workshop Before Baseline necessary changes for existing ops$3 / $70 is 4.3% for initiatives$35.21 / 12 = $2.93 / month$500,000 / 14,200 = $35.21$500,000 is 4.4% of $11.3m or 2.0% of $24.2m14,200 Customers– Electric 2111/8/2021Financial Perspectives-2/22/2021 Strategic Plan Workshop (~$37m in debt principal)= $176/year /12 = $15 per month$50,000,000 / 14,200c / 20 years Debt Service Example14,200 Customers– Electric 2211/8/2021Financial Perspectives-2/22/2021 Strategic Plan Workshop and/or Debt Service combinedExpOp per year 1,000,000 = $$5.87/month $7/month = $1,192,800 per year $15/month = $2,556,000 per year14,200 Customers– Electric 2311/8/2021Financial Perspectives-2/22/2021 Strategic Plan Workshop and Debt Service combinedExpIncremental Op $2.93 per month per customer$35.21 per customer per year$500,000 revenue requirement(via $3.7m capital project 20yr bond financed)Debt Service$250,000 in 2022 -Initiative Y Exp$250,000 in 2022 Op -Initiative X 14,200 Customers– Broadband 2411/8/2021Financial Perspectives-2/22/2021 Strategic Plan Workshop 100% RenewablesLocal GenerationUndergrounding Power Lines Broadband 2511/8/2021Financial Perspectives-2/22/2021 Strategic Plan Workshop a new separate Division, if Retail direction-Wholesale vs Retail Direct to Customer-partnership/JV, grants, debt–Funding -expense at this point (consulting $)Business plan development/details an operating -capital plan prioritizationa –Fiber build out on back of Electric (near term) - Local Generation 2611/8/2021Financial Perspectives-2/22/2021 Strategic Plan Workshop Grants, Partnership opportunities-and have Debt potentialInfrastructure expenditures would be Capital -lower priority, so no or few $ in near term-EXPENSE–Consulting to help analysis of options 100% Renewables 2711/8/2021Financial Perspectives-2/22/2021 Strategic Plan Workshop customer or $3.79 per monthA 5% increase equates to $645,750 or $45 per $12,915,000-Budget 2021 Purchased power is an operating expense Undergrounding Power Lines 2811/8/2021Financial Perspectives-2/22/2021 Strategic Plan Workshop for fire defense–space cost savings by UG?defHow much biomass cost benefit options–Evaluate Wildfire Defensible space Assessment District and or tax measureconsultant to help with –Operating Expense Bonds and likely AD(s)–Actual Project –Capital expense (gray) Board Initiatives Next Steps 29 Concept to Application Initiative Next 30 Board Discussion: Your thoughts? What are we missing?Plan Adoption● Public Workshops● Preliminary Project Plan● Regulatory Review● Funding Analysis● streamsUpdated Cost Analysis including nontraditional funding ● SWOT● Define Scope of Work● Identify Potential Partners and have Meetings● Community Priority-Undergrounding of Overhead Powerlines Steps (Draft) Initiative Next Board Discussion: Your thoughts? What are we missing?31 Plan Adoption● Public Workshops● Funding Analysis● Cost of Service Analysis● Preliminary Project Plan Review● )etcRegulatory Analysis (LAFCO, FCC, ● ● SWOT● Identify and meet with potential Public/Private Partners● Community Priority-High Speed Internet/Broadband Steps Initiative Next Board Discussion: Your thoughts? What are we missing?32 Adopt District Plan/Resolution● Evaluate Local Green Energy Rate● Coordinate with Local Partnerships (Public/Private)● Establish District energy emissions (GHG)goals● Identify Short term and Long Term Clean Energy Goals● Energy PortfolioPublic Workshop on current energy market and TDPUD ● 100% Clean Renewable Steps Initiative Next Board Discussion: Your thoughts? What are we missing?33 Adopt Plan● Preliminary Project Plan● Public Workshops● Identify Public/Private Partnerships● Identify Project Scope● SWOT● Biomass○ Small Hydro○ Solar (Rooftop, Community)○ Identify and evaluate local generation opportunities● solar, hydro or biomass energy:-Clean Power Generation Steps 34 Electric Rate Payers 35 biomass energyClean Power Generation Solar, Hydro or 100% Clean renewableUndergrounding Overhead Power LinesHigh Speed BroadbandWater Rate Payers Next Steps 37 Major Initiatives & Strategic Plan: Board acceptance of goals, th May 19Culture/Values/Staff Development: Organizational st April 21Milestone Mapping-Modelling: Continue Financial st March 31Board Workshop Dates Our Focus Groups 38