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Home My WebLink About12-Approval of Minutes for February 20, 2013Agenda Item # 12 MINUTES To: Board of Directors From: Barbara Cahill Date: March 06, 2013 Minutes for the Meeting Dates Approval of Minutes for February 20, 2013 REGULAR MEETING ,;�Av February 20, 2013 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 in Perpetuity 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 6:00 PM in the TDPUD Board Room by President Bender. ROLL CALL: Directors Jeff Bender, Bob Ellis, Ron Hemig, and Tony Laliotis were present. Director Joe Aauera was absent. PLEDGE OF ALLEGIANCE Director Laliotis led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT Bob Mescher, Steven Poncelet, Stephen Hollabaugh, Kathy Neus, Tricia Phillips, Neil Kaufman, Lauren Schaake-Hudson, Michael Holley and Barbara Cahill CONSULTANTS PRESENT Steve Gross OTHERS PRESENT Juanita Schneider and Doug Coulter CHANGES TO THE AGENDA General Manager Holley stated there are no changes. PUBLIC INPUT There was no public input. DIRECTOR UPDATE There were no Director updates. PUBLIC HEARING: MARTIS VALLEY GROUNDWATER MANAGEMENT PLAN President Bender opened the Public Hearing at 6:02 PM. There were no public comments. No written comments had been received. The Public Hearing was closed at 6:04 PM. CONSENT CALENDAR CONSIDERATION OF A RESOLUTION TO ADOPT REVISIONS TO THE DISTRICT'S CONFLICT -OF -INTEREST CODE This item involves adopting a resolution for revisions to the District's Conflict -of -Interest Code in District Code Title 2. CONSIDERATION OF A RESOLUTION ACCEPTING COMPLETION OF THE DISTRICT HIGH EFFICIENCY BOILERS AND AUTHORIZE THE FILING OF A NOTICE OF COMPLE- TION This item involves the acceptance of the District High Efficiency Boilers as complete and authorizes the filing of the Notice of Completion. Minutes: February 20, 2013 CONSIDERATION OF AN ANNUAL CONTRACT FOR THE PURCHASE OF WOOD POLES This item involves the purchase of wood poles for 2013. CONSIDERATION OF AN EXTENSION OF UAMPS POOLING APPENDIX CONCERNING STAM- PEDE HYDRO AND CITY OF FALLON This item involves extension of UAMPS Pooling Appen- dix to extend an agreement between the City of Fallon and TDPUD concerning Stampede Hydro. CONSIDERATION OF A CHANGE ORDER TO THE MARTIS WELL MAINTENANCE CONTRACT 2013 This item involves additional repairs required to the Martis Well. Director Laliotis moved, and Director Hemig seconded, that the Board approve the consent calendar. ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED ACTION ITEMS CONSIDERATION OF ADOPTING THE UPDATED MARTIS VALLEY GROUNDWATER MANAGEMENT PLAN This item involves adoption of the Updated Martis Valley Groundwater Management Plan. Director Hemig moved, and Director Ellis seconded, that the Board approve Resolution 2013-04 adopting the updated Martis Valley Groundwater Management Plan. ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED CONSIDERATION OF WRITE-OFF OF DELINQUENT ACCOUNTS RECEIVABLE This action requests the Board of Directors to approve the current semi-annual write-off of delinquent account balances for FY12. Director Laliotis moved, and Director Hemig seconded, that the Board approve the write-off list in the amount of $34,271. ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED CONSIDERATION OF FY12 YEAR-END FINANCIAL RESULTS AND REQUEST FOR TRANSFERS AND BUDGET CARRY-OVERS This item involves the comparison of the actual year-end financial results to the FY12 Budget; and consideration of transfers and budget carry-overs. Director Laliotis moved, and Director Ellis seconded, that the Board authorize the following transfers and carry-overs: a) Transfer $1,173,000 from the Electric General Fund to the Electric Capital Replacement Reserve Fund b) Transfer $242,000 from the Electric General Fund to establish the new Electric AB32 Cap & Trade Restricted Fund c) Carry-over $35,000 from the Water Department's FY12 Budget to the FY13 Budget to fund the Water Pipeline Rehabilitation Project d) Carry-over $459,000 from the Water Department's FY12 Water Budget to the FY13 Budget to fund the Water SCADA Replacement Project ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED 2 Minutes: February 20, 2013 CONSIDERATION OF THE FUTURE ROLE OF ENERGY STORAGE AB 2514 WITHIN THE DISTRICT This item involves determining if energy storage systems AB 2514 are viable and cost-effective for the District. Director Hemig moved, and Director Laliotis seconded, that the Board: a) Find that energy storage systems are not currently viable and cost effective for the District and the District is not adopting procurement targets at this time b) Direct staff to reevaluate this issue not less than every three years as required by AB 2514 ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED WORKSHOPS DISCUSSION OF THE DISTRICT PIPELINE REPLACEMENT — 2013 This item involves a discussion regarding the 2013 Water Pipeline Replacement Project. Neil Kaufman gave a presentation: • A significant portion of the District's water distribution system was constructed in the 1960s & 1970s o A number of these pipelines are in poor condition and in need of replacement o The District's last pipeline replacement project occurred in 2010 • Since 2010, there have been a number of pipeline segments where it has been necessary to perform repeated repairs • The planned construction for 2013 entails about 2,300 feet of main line pipe located at five separate locations in Tahoe Donner 3 • Contract has been configured as a base bid with one additive alternate Item I Location Base Bid Davos Drive at Heidi Way Northwoods Blvd at Norse Avenue Northwoods Blvd above Chamonix Road Northwoods Blvd at Coyote Moon Golf Course Additive Alternate Northwoods Blvd at Viking Way The project is statutorily exempt under CEQA District has also issued an RFP for geotechnical testing services o RFP covers work for the pipeline project and the planned sitework at the Donner Lake substation • The current project schedule is: o Begin Advertising for Bids - Early February o Bid Opening — March 20 o Bid Award — April 3 o Begin Construction — May 1 o Complete Construction — End of August • Fiscal Impact o Project not included in FY 2013 approved by Board o Proposed funding source is the Water Department Capital Replacement Fund o $500,000 is allocated for the construction contract o Additional costs incurred for geotechnical testing and construction inspection Minutes: February 20, 2013 Public input: Does this work involve Donner Lake Storage tank Board discussion: • The District has been working on Tahoe Donner pipelines for a few years now- what level are we on now in the overall replacement of the system — about half? • Are repairs needed because of faulty materials that were put in years ago, is is tree roots or some other issues? • What type of piping materials do we use now? • How many miles will be replaced on this project? • Why limit this project to only $500,000? • Have a decent amount of surplus and reserves in water to use to put toward other prob- lem areas. • Understand staffing and work load issues in order to manage a job. • Support moving forward with pipeline replacement. It is expensive, but on the tail end of water conservation and water use, it makes sense. • Does the District anticipate a larger project and more linear footage of pipeline replace- ment in 2014? DISCUSSION OF 2012 PURCHASE POWER LOAD, RESOURCES, PEAKS, AND COMPARISON TO 2012 BUDGET FORECAST This item involves a summary of 2012 Purchase Power including load, resources, peak and comparison of budget forecast to actual. Stephen Hollabaugh gave a presentation: • Purchase Power Plan was approved on November 16, 2011 • FY 12&13 Budget included "Purchase Power Plan" o Mission statement and objectives o Renewable Portfolio Standard (RPS) target o Conservation as first resource o Diversified power supply plan o Future renewable resources o Proposed resources for 2012 o Risk analysis and 2012 forecast FY12 Purchase Power Plan included: Cost Component and Description Cost $ per MWh Total Energy Supply - Various $10,757,413 $66.40 Transmission Wheeling - SPPC $1,049,546 $6.48 Scheduling - NCPA $68,859 $0.42 Central Valley Project - WAPA $ - 28,012 $ - 0.17 Totals $11,847,806 $73.13 • 2012 Plan was based on a forecast of 162,000 MWh • Summary budget vs. actual FY12 Description Budget Actual Total Energy Cost $11,847,806 $10,082,208 Total Energy Consumption MWh 162,000 154,976 Cost per MWh $73.13 $65.06 4 Minutes: February 20, 2013 • Energy cost: 14.9% less than budget • Energy consumption: 4.3% less than forecast • RIPS compliance periods and targets: 0 2011 thru 2013; 20% of retail sales 0 2014 thru 2016; 25% of retail sales 0 2017 thru 2020; 33% of retail sales • 2012 Actual RIPS Eligible Renewables CPUC MWh REC's % Sales Small Hydro 2,970 2.0% Landfill Gas 18,178 12.5% Wind 15,047 10.3% REC's Wind 18,000 12.3% Solar 0 0.0% Total 54,195 37.1 % • Detailed budgeted vs. actual amounts for FY12 Power Purchases, MWh Budget Actual Total Energy Purchase, MWh 162,000 154,976 Percent Difference, Actual vs. Budget -4.30% Power Purchase Costs Budget Actual Total Power Purchase Cost $ 11,847,806 $ 10,082,209 $ Over/(Under) Budget $ (1,765,597) Percent Difference, Actual vs. Budget-14.90% Purchase Cost per MWh $73.13 $65.06 Percent Difference, Actual vs. Budget-11.05% There was no public comment. Board discussion: • Interested in slide with monthly use- more people here skiing this year over holidays. • Seems like we would have some months closer to the target, what reasons lead to that? • Horse Butte Wind power- if it is incorporated the cost of the power less the cost of the auction, what is the net per megawatt or kilowatt? It is a reasonable cost when you do not include the auction amount. • What percentage do you expect to be buying Northwest water power again or was that just an exception for last year? • What is the present cost for Horse Butte? • In future years, we may be able to buy out the Horse Butte contract and save about $7 MWh. • The fact the Water Department is using less energy for several reasons — is that a big enough factor to make you come in under your demand numbers? • Do you have any idea what our coal percentage was in 2012? • It would be neat if we could have a little bit of solar in the portfolio. • Are there any other renewable projects coming up. • What would be the capacity of the new waste heat project? 5 Minutes: February 20, 2013 • Are you predicting to reduce REC purchases? We have real renewables now. • Keep looking for renewables. REVIEW OF DISTRICT 2012 WELLNESS PROGRAM AND 2013 WELLNESS/FITNESS CHALLENGE This item involves the review of 2012 wellness program and 2013 wellness program activities. Kim Harris gave a presentation: • TDPUD has provided a Wellness Program for many years o District's health insurance provider, NRECA, offers 6% discount on annual premium o Discounted premium dollars pay for the wellness program o Offering an annual health screening is required, but participation is optional o On-line personal wellness profile • 2012 3-Month Fitness Challenge • Was offered to all employees, Directors, and spouses • Participants earned points for daily activities focusing on exercise, nutrition, and weight - loss • 28 participants logged over 22 million steps during the challenge • Meeting individual goals was rewarded • Good employee participation rate with positive feedback • 2013 Wellness Program • Blood draws will be on February 26 and 28 and Health screenings with results will be on March 12 • Fitness challenge will begin April 1 and run through June 30 • Similar to the 2012 Fitness Challenge • Involvement is optional, but all Directors, employees and spouses are encouraged to participate • Rewards are offered for meeting personal goals • Fiscal Impact • The exact cost of the wellness program depends upon the level of participation • Estimated at $26,000 • Sufficient funding for the wellness program is included in the FY13 budget There was no public input. The Board agreed this is a great program and they appreciate it. ROUTINE BUSINESS TREASURER'S REPORT: JANUARY 31, 2013 Approval of the fund balances as of DECEMBER 31, 2012: Director Laliotis moved, and Di- rector Ellis seconded, that the Board approve the treasurer's report for the month ended De- cember 31, 2012. ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED Approval of disbursements for January 2013 Director Hemig moved, and Director Laliotis seconded, that the Board approve the January 2013 disbursements report. ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED 6 Minutes: February 20, 2013 APPROVAL OF MINUTES FOR JANUARY 16 AND 28, 2013 Director Ellis moved, and Director Hemig seconded, that the Board approve the minutes of January 16 and 28, 2013. ROLL CALL: Director Aguera, absent; All other Directors aye, by voice vote. SO MOVED CLOSED SESSION CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9, CONFERENCE WITH LEGAL COUNSEL ON PENDING LITIGATION: SIERRA PACIFIC POWER CO/DBA NV ENERGY TRANSMISSION RATE CASE AND SCHEDULE 4 ENERGY IMBALANCE 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 8:25 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jeff Bender, President Prepared by Barbara Cahill, Deputy District Clerk 7 Minutes: February 20, 2013