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HomeMy WebLinkAbout2018-04-04 Min - BoardREGULAR MEETING MINUTES April 4, 2018 1. CALL TO ORDER The meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at 6:00 p.m. in the TDPUD Boardroom by President Laliotis, 2. ROLL CALL Directors: Jeff Bender, Bob Ellis, and Vice President Paul Warmerdam, and President Tony Laliotis, Absent: Joe Aguera EMPLOYEES PRESENT: Regina Wise, Steve Hollabaugh, Joe Horvath, Ian Fitzgerald, Ste- ven Poncelet, Kim Harris, Lisa Hall, Regina Wise, Brian Wright, Neil Kaufman, Kathy Neus, Michael Holley, and Shanna Kuhlemier, CONSULTANTS PRESENT —Steve Gross, District Counsel OTHERS PRESENT — 29 members of the public and Town Manager Loux. 3. PLEDGE OF ALLEGIANCE Director Ellis led the Pledge of Allegiance. 4. CHANGES TO THE AGENDA —none. 5. PUBLIC INPUT President Laliotis called for public comment. President Laliotis closed public comment. 6. DIRECTOR UPDATE —none CONSENT CALENDAR 7. Consideration to Approve a Contract with Longo Incorporated for the 2018 Pipeline Project (Minute Order 2018-21). 1) Authorize the General Manager to enter into a contract with Longo Incorporated for the District Pipeline Replacement - 2018 project in an amount of $1,196,852, plus a ten per- cent change order allowance of $119,648, for a total authorization not to exceed $1,316,500 2) Authorize the transfer of up to $335,150 from the Electric Department General Fund to the Water Department General Fund to pay for the Electric Department portion of the project. 1 April 4, 2018 8. Consideration to Approve a Contract with BWD General Engineering Contractors for the Meter Box Retrofit Project (Minute Order 2018-11). • Authorize the General Manager to enter into a contract with BWD General Engineering Con- tractors for the Water Meter Box Retrofit - 2018 project to in an amount of $326,450, plus a ten percent change order allowance of $32,650, for a total authorization not to exceed $359,100. 9. Consideration to Approve a Contract with Construction Materials Engineers for Construc- tion Inspection Services (Minute Order 2018-12). • Authorize the General Manager to enter into a contract with Construction Materials Engk neers for on -call construction inspection services in an amount not to exceed $80,000. 10. Consideration of Increasing Total Expenditure Limit for Annual Welding Service Contract (Minute Order 2018-13). • Authorize the General Manager to amend the services agreement with Poulin Steel Fab- rication, Inc. to increase the 2018 expenditure limit by $25,000, for a new contract amount not to exceed $50,000. 11. Consideration of Scheduling a Public Hearing Related to Adoption of the Annual Electric and Water Standby Charges (Minute Order 2018-14). • Schedule the Public Hearing 12. Consideration of a Contract for Land Surveying Services (Minute Order 2018-15). • Authorize the General Manager to execute a contract for surveying services with Sage Land Surveying, Inc. in the amount of $46,500 plus a 15% change order allowance, for a total amount not exceed $53,475. 13. Consideration of Professional Services for Management Training (Minute Order 2018-16). • Authorize the General Manager to execute a professional services agreement with Pam- ela Hurt Associates, in an amount not to exceed $62,000. 14. Receive and Consider Annual Reports (Minute Order 2018-17). 15. Consideration of Scheduling a Public Hearing Related to Adoption of the Electric Connec- tion Fee Schedule (Minute Order 2018-18). 16. Consideration of Awarding a Contract to Purchase LED's for the District's Conservation Program (Minute Order 201 &19)0 • Authorize the General Manager to execute a contract with AM Conservation Group for the purchase of LED's in a minimum amount of $48,820 with a total contract amount not to exceed $105,640 plus tax. 17. Consideration of 2018 Employee Safety Incentive (Minute Order 2018-20). • Approve a safety incentive of $300 to each District employee provided he or she incurs no lost -time accidents through December 31, 2018. President Laliotis called for public comment, there were none. President Laliotis stated he would like to finish the water meter installation this year. Director Ellis moved, and Vice President Warmerdam seconded, that the Board approve the consent calendar. The motion passed unanimously (4-0), by a roll call vote. Director Aguera was absent. 2 April 4, 2018 ACTION 18. Consideration of a Power Sales Contract for the UAMPS Carbon Free Power Project (CFPP) Steve Hollabaugh provided a presentation which is available upon request. Doug Hunter, UAMPS provided information on subscriptions. General Manager Holley provided some information including: • There is a generation gap in the portfolio and all power projects take a long time to build. The chosen source needs to fit into the existing portfolio. • This is not the only generation the District is looking at. Pointed out that staff does not advocate for a particular technology, nor do they chase fads. They look at the needs of the District. So this technology might be a solution, it might not be "THE" solution. • Identified three main issues: o Is satisfied with the safety of the project. o Understanding staff's fiducial responsibility, there is uncertainty in the final budget numbers. ■ The social justice issue and allocation of cost is a major decision driver in this project and allocation of cost. ■ The ability and availability to invest in future like solar or wind is viable, however, the District still needs a baseload. ■ Has been pleased with the off -ramps in the contract. ■ There is uncertainty with cost being outside District control. ■ There is also positives and negatives to the Department of Energy being in the first position of the plant. o The refuse of waste disposal in dry cast is safe, but not permanent, and uncom- fortable ethically. o Recycling exists in Europe, but by law, not in the United States. o Also brought up the rods are cheaper to replace than recycle. ■ This District is good on its waste management, we recycle. ■ Prefer to see this waste be recycled. • Stated there is an ethical issue at question and questioned the political will for the waste. President Laliotis called for public comment. Jim Ritchie; • Provided new data that was handed to the Board at the meeting. • Stated this information just came out yesterday. o In summary, this depicts the medium bid for power that Colorado Utility Commis- sion is examining. • There are a number of renewables at much lower rates than UAMPS. o Not one is nuclear. • There is not a reason to commit to the SMR project, least of all a financial one. • Understands the hedge and need for baseload. o That can be accomplished with wind and solar with battery back-up. o This is a perceived need for base load. 3 April 4, 2018 • The data shows that the battery backup and the amount of around $20.00 mwh would assist in the need for baseload. These would alleviate perceived baseload which is dis- appearing rapidly in society. • One of the excess bids that Colorado does not use will be available to use in Truckee. • Squaw Valley in partnership with Liberty is installing solar and battery backup. This cures all their renewable issues and base load. Suggested the Board speak with Andy Wurth regarding his solution to baseload power. Mathew Stein, an Engineer from MIT, stated; • Is good friends with a number one nuclear engineer? o Nuclear power plants take longer and cost more. o To invest in something that will take10 years with unproven technology doesn't make sense. o The Russians have SMRs and their current project has major cost overruns and high cost for commercial usage. o Korea has openly stated there is not market due to cost for nuclear. • Stated this is not fully carbon free as marketed. • Provided anecdotal information on current accidents with nuclear energy. • Provided anecdotal information on waste in the United States spent fuel ponds. • Stated it is unethical to generate this energy. Kaitlin Backland, Truckee resident, stated; • Worked in Nevada with nuclear waste, specifically at the Yucca Mountain repository. • Thanked the PUD for the plethora of information provided on the website. • Supported the PUD to look at all types of energy. • Yucca Mountain is not an option for the spent fuel. • The price tag of the project is too high. • Europe and Asia have not figured out a way to dispose correctly, and they can recycle. • SMR's need to be mined for uranium and that needs to be taken into account. • The PUD and community need to find a solution for baseload. • Provided anecdotal information on effects of Indians, low income citizens and people "of color". • Current administration (US) has implemented many failed programs. Ronnie Colby, Mountain Area Preservation and Truckee resident, stated; • Appreciates looking into the project, provided some anecdotal information on legislation and regulation of nuclear. • People want to believe nuclear is safe and good, it is not. • Respectfully requests the TDPUD not move forward with the project. • Costs are huge, nuclear historically under estimates and under provides. • Provided anecdotal information on the Nuclear Control Institute and the World Trade Center. • Wind and storage are key. • Thanked Mr. Holley for reaching out to MAP in the beginning. o Staff has not reached out to MAP since that time. o There has not been any due diligence on this project. o Same as the coal debacle, there is not enough time to process this. 4 April 4, 2018 Steve Frisch, rate payer, stated; • Applaud the PUD for 60% renewable portfolio and greenhouse gas admissions. • Opposed to moving forward with nuclear. • Talked about coal debacle, this is the same as nuclear waste. o Same people, same issue. • Biomass plant in Loyalton is running, the price is lower than 64.00 mwh, with credits from the government. This is a reasonable price. • This is your off ramp. • Mr. Holley hit the nail on the head, with what he stated. o This is an ethical decision. Krista Finn, rate payer, stated; • Was present at the coal debate. • Echoes everyone's comments. • Great job to staff on renewable portfolio. • This is an ethical issue, further, this is all imaginary as everything is. o Whatever we choose to train our imaginations on, will come to fruition. • Community is stating what they want. • Research and explore areas that already have 100%. • We have control burns we should use a biomass. • Creativity and desire should guide the process. o We will need to take risks, and that is what we should do. Dave Clement, • Provided a quote from Allison McFarland on nuclear waste. • This is a political and ethical problem. • At Yucca Mountain we thought we had a solution, but when it closed, we are now having an issue. • Mr. Holley is correct with what he stated. • We don't have any business in creating more nuclear waste. o You will send a message to other customers and our community about ethics. Robin Anliker, stated; • Most points have been covered previously. • The solar plus industry can verify all numbers that the first gentleman brought up. • Works in the industry, and would probably be fired if she provided a project with anything over 40 mwh. • Rate payers need to know the truth about this and what the market can produce. • Impressed that the PUD is considering bringing energy from Utah, but does not want nuclear. o That is embarrassing for our community and not showing good leadership. • Works at Solar Frontier (at the break, provided her phone number for the TDPUD's use). David Sierra Club, Toiyable Chapter, stated; • Is a scientist from Reno, worked at Yucca Mountain • Is opposed to the contract. 5 April 4, 2018 • Opposed to nuclear plants due to hazardous fuel cycle, power generation and failure. • Waste is an issue. • Renewable energy is competitive. • NV Energy is signing contracts for 34.00 mwh. o Some contracts under 20.00 mwh. • Stop taking risks with nuclear energy. Suzie Tarnay, Truckee resident, stated: • Thanked the Board for bringing up the ethical issue. • Is a mother, resident, and rate payer. o Wasn't able to make it to the public workshops however has obtained 380 signa- tures, 218 online, another 150 signature for a petition to stop this project. • Waste is the issue. • This is not renewable per Town Council. • Battery technology is not fully adequate, but nuclear has had decades of failed experi- ments. Cloe Shecker, 10th grade student, stated; • Does not agree with nuclear as a carbon free resource. • The repercussions of waste are unknown. • Does not believe we should invest in something we don't know about. John Sorenson, Truckee resident, stated: • He is a rocket scientist not nuclear scientist. • Prideful that the PUD is at 60% renewable. • Proponent of solar energy. • As a community we should work together to make the 100% goal come to fruition. o This could go against the Town of Truckee, and their aspirations. • The community wants clean energy, we should invest in solar and wind. Erin del Fontaine, Truckee resident, stated; • Appreciates the PUD's current renewables. • Ditto on all comments. • Ditto on waste issue. • Solar, wind, hydro and battery all can be achieved at a much lower rate than proposed. • Community needs power, appreciates power. • Warned about scaring or misleading the community over baseload, demands, or rates. o Solar, wind, hydro, geothermal with batteries can do all the baseload. • The concept of baseload is outdated, now micro grids become the baseload. • Community is significantly impacted economically due to climate change, power ties into this. • No more old school thoughts, our future is in renewables. Micro and smart grids. Nikki, project manager, Sierra Business Council, stated; • Ecco all the comments. • Climate change impacts on power industry. o Extreme weather, fires, and heat that will impact the facility. 6 April 4, 2018 ■ Not sure this has been taken into account. • California fires are exacerbated by climate change. • Need local micro grid. • These are opportunities to partner with Plumas Sierra Electric and Placer Community Choice Aggregation and Liberty. o These guys are looking at solutions with local jobs. Dedra Henderson, Truckee resident, stated; • Appreciates that Truckee gets power from publically owned and not an investor owned. o This allows the community to have a say. • Joins in most comments. • Climate change proponents would like nuclear to be safe and cheap but it's not. o Hopefully future proven solutions arise. • Would like PUD to move into new power future. • Look at new science. o Where they can be combined for reliable baseload power. • Look at communities with 100% renewable o We have 12 years to meet Council's requirement. ■ This is the first proactive step. • Energy conservation, and work together for a road map for 100% renewable. President Laliotis closed public comment. Board Comments: • Appreciates all the comments and efforts from the public. • Thanked participants for actual facts. • Did not like the NuScale presentation stating waste is not "our" problem. This doesn't sit well with the Board. • Appreciated the process with the public. • Appreciated the civility of the participants. • The Board is your public servants and participation is important to decision making pro- cesses. • Elected officials represent the community and their values. • Believes it is a good project if it was successful. • Values the ethical side of the equation on nuclear waste. • Moving forward, this District has gotten to a phenomenal RPS standard. • The District has the skill and knowledge with our staff to find solutions to this issue. Vice President Warmerdam moved, and Director Ellis seconded, that the Board reject the con- tract and the project. Further provided direction to staff to look for other alternatives other than this project. The motion passed unanimously (4-0), by a roll call vote. Director Aguera was absent. 19. Consideration of Adopting Resolution 2018-02 Amending District Code, Title 5 Customer Relations Lisa Hall provided a presentation which is available upon request. 7 April 4, 2018 President Laliotis called for public comment, there were none. Director Bender moved, and Director Ellis seconded, that the Board approve the staff recom- mendation. The motion passed unanimously (4-0), by a roll call vote. Director Aguera was ab- sent. 20. Reorganization of the Electric Department Kim Harris provided a presentation which is available upon request. President Laliotis called for public comment, there were none. Director Ellis moved, and Vice President Warmerdam seconded, that the Board approve the staff recommendation. The motion passed unanimously (4-0), by a roll call vote. Director Aguera was absent. 21. Consideration of the 2017 Unrepresented of Wage Ranges (Minute Order 2018-22) Employee Compensation Study and Approval Kim Harris provided a presentation which is available upon request. Shelly Anderson with Bryce Consulting. President Laliotis called for public comment, there were none. Board Comments: • COLA and CPI has been implemented in the wage range. • Glad we did the study, important to have. • Minor changes, overall was minor. • Emotional factors go into this process. • Important document for Board to make informed decisions on staffing. • Keeps us competitive and attract quality employees, need to know what that means. This study does that. Director Ellis moved, and Vice President Warmerdam seconded, that the Board approve the staff recommendation. The motion passed unanimously (4-0), by a roll call vote. Director Agu- era was absent. ROUTINE BUSINESS 22. Treasurers Report: March 31, 2018 a) Approval of the Treasurer's report of fund balances as of February 28, 2018. President Laliotis called for public comment, there were none. Director Bender moved, and Director Ellis seconded, that the Board approves the Treasurer's Report. The motion passed unanimously (4-0). Director Aguera was absent. 8 April 4, 2018 b) Approval of disbursements for March 2018. President Laliotis called for public comment, there were none. Director Bender moved, and Vice President Warmerdam seconded, that the Board approves the Treasurer's Report. The motion passed unanimously (4-0). Director Aguera was absent. 23. Approval of Minutes March 7, 2018. President Laliotis called for public comment, there were none. Director Bender moved, and Vice President Warmerdam seconded, that the Board approve the Minutes. The motion passed unanimously (4-0). Director Aguera was absent. CLOSED SESSION — 8:27 p.m. 24. Closed Session Pursuant to Government Code Section 54957, Public Employee Perfor- mance Evaluation — General Manager's Performance Plan Review. No Reportable Action. 9:15 p.m. Director Bender recused for a potential conflict of interest and left the meeting. 24. Closed Session Pursuant to Government Code Section 54956.9(d)(4), Deciding Whether to Initiate Litigation, one case, AT&T. No Reportable Action. ADJOURNMENT - 9:32 p.m. Vice President Warmerdam moved, and Director Ellis seconded, that the Board adjourns the meeting at 9:45 p.m. The motion passed unanimously (4-0). Director Aguera was absent. There being no further business before the Board, the meeting was adjourned at 9:32 p.m. to the next scheduled meeting of the Truckee Donner Public Utility District on May 16, 2018, at 6:00 p.m. TRUCKEE DONNER PUBLIC UTILITY DISTRICT g ra Tony Laliotis, Prepared Sharma C hlemier, CMC, District Clerk 9 April 4, 2018