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Home My WebLink About2012-03-07 Minutes REGULAR MEETING March 7, 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 6:00 PM in the TDPUD Board room by President Laliotis. ROLL CALL Directors Joe Aguera, Laura Clauson Ferree, Ron Hemig, and Tony Laliotis were present. Director Jeff Bender was absent. PLEDGE OF ALLEGIANCE Director Aguera led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT Robert Mescher, Kathy Neus, Neil Kaufman, Steve Hollabaugh, Steve Poncelet, Michael Holley and Barbara Cahill CONSULTANTS PRESENT Steve Gross OTHERS PRESENT Bob Ellis, Dan Warren, Scott Parker and Becky Bucar CHANGES TO THE AGENDA General Manager Michael Holley removed agenda item No. 18, Closed Session, Public Employee Performance Evaluation - Government Code Section 54957 (e): General Manag- er Performance Plan Review PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Hemig stated there was no Municipal Finance Authority meeting in February. Direc- tor Laliotis said he did not attend the February NCPA commission meeting. CONSENT CALENDAR CONSIDERATION OF A CONTRACT WITH NORTHERN CALIFORNIA POWER AGENCY (NCPA) REGARDING A DATA BASE SYSTEM This item involves a contract for a Data Base System than would assist the Conservation Department with rebate processing and program reporting. CONSIDERATION OF A RESOLUTION TO ANNEX PARCELS IN PLACER COUNTY This item involves annexation of Placer County Parcels. 1 Minutes: March 7, 2012 CONSIDERATION OF AWARDING A CONTRACT FOR INSURANCE BROKERAGE SERVICES This item concerns the District's insurance brokerage services. CONSIDERATION OF CANCELLING THE REGULAR BOARD MEETING ON MARCH 21, 2012 This item involves cancellation of the regular Board meeting on March 21, 2012 due to a lack of District business. CONSIDERATION OF GRANTING AN EASEMENT TO THE TOWN OF TRUCKEE FOR A PUBLIC BIKE/PEDESTRIAN TRAIL ACROSS DISTRICT PROPERTY LOCATED AT 11270 TRAILS END RD, APN 19-400-27 This item involves granting an easement to the Town of Truckee for Public Bike/Pedestrian Trail across District property located at 11270 Trails End Road, APN 19-400-27. Director Hemig moved, and Director Aguera seconded, that the Board approve the consent calendar. ROLL CALL: Director Bender, absent; all other Directors aye, by voice vote. SO MOVED ACTION ITEM CONSIDERATION OF A NOMINATION TO FILL A VACANCY ON THE NEVADA COUNTY LOCAL AGENCY FORMATION COMMISSION This item involves making a nomination for a District Member on LAFCo. The Directors stated no desire to take any action on this item. WORKSHOPS DISCUSSION REGARDING THE 2012 WATER MASTER PLAN This item involves the review of the 2012 Water Master Plan. Neil Kaufman made a presentation:  Purpose of Water Master Plan o Document the existing water system o Identify any deficiencies with the existing water system and improvements to correct those deficiencies o Identify facilities needed to serve future growth up to build out conditions o Develop cost estimates for needed improvements and provide recommendations regarding Connection Fees and Facility Fees  Current Water Master Plan adopted in 2004  Adoption of Water Master Plan requires a CEQA review  Section 1 – Introduction o Background & history o Scope of the study  Existing system as of December 31, 2010  Includes discussion of Hirschdale system o Data sources & other reports 2 Minutes: March 7, 2012  Section 2 – System Planning Criteria o System pressures o Pipeline velocity & head loss o Storage requirements o Cost estimating criteria  Section 3 – Existing Water Facilities o Brief discussions with summary tables and maps  Pressure zones  Wells  Treatment facilities  Other supply sources  Pumping stations  Storage tanks  Control valve stations  Pipelines  Section 4 – Population & Water Demands o 2010:  Potable Average Day Demand = 4.5 mgd  Potable Maximum Day Demand = 9.5 mgd o Build out (Year 2038):  Potable Average Day Demand = 10.1 mgd  Potable Maximum Day Demand = 20.3 mgd  Section 5 – Water Supplies o Groundwater from Martis Valley Groundwater Basin o Prior studies determined sustainable yield of 24,000 acre-feet per year o Total basin-wide withdrawals for year 2010: 7,175 acre-feet  District pumped about 5,075 acre-feet o New groundwater study underway  Scheduled for completion in 2013  Section 6 – Existing System Evaluation o Areas of high and low service pressure o Some transmission pipelines are too small o Some areas of inadequate fire flow o Some additional storage needed o Pipeline replacement needs o 38 recommended improvements  Section 7 – Future System Evaluation and Layout o Second pipeline to Tahoe Donner o Additional wells o Additional storage o Additional pump stations o Additional pressure reducing stations  Section 8 – Capital Improvement Program o Cost estimates for future projects  Construction cost of $68 million  $28 million from rates  $40 million from Facility Fees 3 Minutes: March 7, 2012  Total cost of $93 million o Assumed year of construction for projects  Actual year will vary based upon future growth and available funding  Section 9 – Financial Impacts o Cost impact of proposed CIP  Reduce Residential Facility Fees from $1.64/square foot to $1.61/ square foot  Increase Commercial Facility Fees by about 30 percent  Minor increase in Connection Fees Current Current Fee Proposed % Change Item Facility Fee Adjusted for Facility Fee Adjusted Inflation for Inflation Commercial $3,358 $4,140 $4,365 5.4% (3/4” meter) Residential $1.64/sq. ft. $2.02/sq. ft. $1.61/sq. ft. -25.4%  Next steps o Conduct public hearing o Respond to comments from Board and public o Perform CEQA review o Adjustment of Facility Fees is subject to Proposition 218 requirements  Tentative Schedule o March 7, 2012 – Review of draft Water Master Plan (tonight) o April 4, 2012 – Public hearing on Water Master Plan o May 2, 2012 – Review of CEQA Initial Study o June 6, 2012 – CEQA public hearing o July 18, 2012 – Adoption of Water Master Plan o August 1, 2012 – Public hearing on ordinance to adjust Facility Fees  September 5, 2012 – Adoption of ordinance to adjust Facility  Schedule a public hearing on the for April 4, 2012 to receive comment on the draft Water Master Plan There was no public input. Board discussion:  Looks good for the way things are going  Go with the April 4 public hearing  What was the driver behind reducing the residential facility fee- is inflation taken into account and the reduced demand due to conservation  If there is a reduced demand through conservation, wouldn’t that delay infrastructure demands  Population projection lower- less need  Good results- want to understand the dynamics  Tahoe Donner was mentioned – precarious to only have one source of transmission into the subdivision- need to fix even if more houses are not added 4 Minutes: March 7, 2012 DescriptionBudgetActual Total Energy Cost$11,328,658$10,782,247 Total Energy Consumption, MWh162,000160,544 Cost per MWh$69.93$67.16  Does Tahoe Donner have a well  Is there going to be a connection fee increase  What is the timing of the Tahoe Donner project and would this piggy back with the third access road  $1 million allocation for projects to existing facilities is not a large number. Is it enough for projects- or would it be better to have more dollars- more realistic for our needs. Move forward, but without debt  Excellent job Neil. The District is fortunate to do the Master Plan in house- there is a better ownership when done in house.  What is the formula to determine facilities fee, connection fees, rates  What year will the District do the Tahoe Donner second line  What does the District look at for hydrants and spacing  Good job at laying out details and good document to move forward  Report is only as good as the data that is available and the Town projections DISCUSSION OF 2011 PURCHASE POWER LOAD, RESOURCES, PEAKS, COMPARI- SON TO 2011 BUDGET FORECAST This item involves a summary of 2011 Purchase Power including Load, Resources, Peak and comparison of budget forecast to actual. Steve Hollabaugh gave a presentation:  “Purchase Power Plan – 2010-2011 Budget Review” on October 21, 2009 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 2011 o Risk analysis and 2011 forecast  Purchase Power Plan 2011 Budget approved on November 18, 2009  The approved 2011 Purchase Power Plan included the following budgeted amounts COST COMPONENT AND DESCRIPTION COST $ PER MWH Total Energy Supply - Various $10,130,484 $62.53 Transmission Wheeling - SPPC $1,043,766 $6.44 Scheduling - NCPA $77,993 $0.48 Central Valley Project - WAPA $76,416 $0.47 Total $11,328,658 $69.93  Summary budget vs. actual values for 2011  Energy cost: 4.8% less than budget  Energy consumption: 0.9% less than forecast 5 Minutes: March 7, 2012  Cost per MWh: 4.0% less than budget 6 Minutes: March 7, 2012  RPS compliance periods and targets: o Jan 1, 2011 thru Dec 31, 2013; 20% of retail sales o Jan 1, 2014 thru Dec 31, 2016; 25% of retail sales  Jan 1, 2017 thru Dec 31, 2020; 33% of retail sales Eligible Renewables (CPUC) MWh Sales % Sales Small Hydro 5,889 3.9% Landfill Gas 19,639 13.1% Wind 450 0.3% REC’s (Wind) 23,550 15.7% Solar 0 0.0% Totals 49,528 33.0% 7 Minutes: March 7, 2012  Detailed budgeted vs. actual amounts for 2011 are shown below Power Purchase Costs Budget Actual Total Energy Supply - UAMPS, WAPA, etc. $10,130,484 $10,039,485 Transmission - NV Energy $1,043,766 $848,564 Scheduling - NCPA $77,993 $65,604 WAPA $76,416 ($171,406) Total Power Purchase Cost $11,328,658 $10,782,247 $ Over/(Under) Budget ($546,412) % Over/(Under) Budget -4.82% Purchase cost per MWh $69.93 $67.16 Percent difference, actual vs. budget -4.0% Public Input:  Transmission loss- can you chase down where it is- is it efficiency Board discussion:  How does loss accumulate on our system- can we control it  Amazed at how close the budget is to the actual  Great predictions  Surprised we are under budget due to decrease costs of power versus decrease in demand  Good job, impressive  Good report - summary reflects peak load information – percent different from actual budget  Diversify power more and more- allows for more variances and more to control. Big wind component in mix next year. Solid source in vital.- harder as we move forward- realistic expectations  Great story to hold rates- there is a electric rate case of 10-12% increase in a border- ing county  Why was there a dip in sales in 2009  In the RPS graph, where is Horse Butte wind offset on the data?  Close in the energy costs- transmission less  Is the loss at our substations? Is there an energy loss in the customer meter?  Good story REVIEW OF THE 2011 AND PROJECTED 2012 CONSERVATION PROGRAMS THIS ITEM IS A REVIEW OF THE 2011 AND PROJECTED 2012 CONSERVATION PRO- GRAMS Steve Poncelet gave a presentation:  District conservation programs o Significant investments in recent years 8 Minutes: March 7, 2012 o Optimizing current programs o Investigating new, cost-effective programs o Rebates, give-a-ways, and direct-install o Residential and commercial  Primary goals of conservation programs o Maximize ROI o Ensure all customer have opportunity to participate o Educate customers on benefits of conservation  FY11 conservation program results o Evaluation, Measurement, & Verification (EM&V) largely complete o Results remain tops in California for energy reduction and cost-effectiveness  Net annual savings 3,400,293 kWh (2.3%)  Net lifecycle savings of 30,824,481 kWh  TRC of 2.81 ($0.032/kWh) o Money in customer’s pockets  2011 Energy Conservation Program results (2010 #’s): o Commercial rebates: 26 (38) o Residential rebates: 676 (768) o Energy Savings Program customers served: 85 (175) o Residential Energy Survey customers served: 279 (48) o Holiday Light Exchange customers served: 700 (684) o Residential Green Partners customers served: 689 (553) o Business Green Partners customers served: 80 (59) o Keep Your Cool customers served: 10 (36) o Screw-in CFL’s: 51,000 (60,000)  2011 Energy Conservation Program highlights o Green Schools/Trashion Shows  1,800 conservation kits/information  Peer-to-peer education, highly visible o Neighborhood Resource Mobilization 9 Minutes: March 7, 2012  Expanded to Prosser Lakeview and greater Sierra Meadows o ESP & RES  Positive customer response  Challenges maintaining run-rate for ESP o LED Holiday Light Exchange  Over 5% customer participation o Residential Green Partners/CFL give-a-ways o Keep Your Cool  2011 Water Conservation Program results (2010 #’s): o Toilet Rebate customers: 149 customers, 372 toilets (165 customers, 270 toilets) o Toilet Exchange customers: 236 customers, 423 toilets (12 customers, 15 toilets) o Customer Leak Repair rebates: 90 (42) o ESP/RES customers served: 364 (223) o Low-flow showerheads: 2,300 (3,350) o Low-flow sink aerators: 2,800 (4,000) o Low-flow hose spray nozzles: 4,200 (200)  2011 Water Conservation Program highlights o Launch of TDPUD Water Day  Featured toilet-exchange and Patricia S. Sutton Conservation Garden o Water-Efficient Toilet Rebate and Exchange programs  Program expanded multiple times from 2010 o Customer Leak Repair Rebates  More than doubled from 2010 o Green Schools/Trashion Show’s featured water conservation  Over 1,800 low-flow hose spray nozzles  2012 projected programs o Optimize current programs o Respond to regulatory changes  Federal ban on sale of screw-in incandescent light bulbs  Federal ban on sale of T12 fluorescent tubes and magnetic ballasts  SB1037 (Public Benefits) reauthorization o Investigate potential new programs  Potential new energy programs o ‘Last-Chance’ T12 (phase out June 30, 2012) o New Residential Lighting Rebate  $5 per screw-in LED bulb o Modify Appliance Rebate program  Reduce EnergyStar rebate to $50-$75  New CEE Tier rebates (2-3, $100-$150) o Optimize efforts on ESP/RES  Consider having surveyors install CFL’s o Continue to monitor new energy efficiency measures  Evolution of incandescent to CFL to LED  Emerging plug-loads  Commercial technologies  Potential new water programs o Ultra-high efficiency toilets 10 Minutes: March 7, 2012  1.28 GPF or dual-flush  Additional $25-$50 incentive over current programs o High-efficiency clothes washers  CEE Tiers 2-3  Additional $25-$50 incentive over energy rebate o Continue to optimize and promote Patricia S. Sutton Conservation Garden There was no public input. Board discussion:  What is a dual flush toilet  Exceptional performance  Is the District tops in conservation and efficiency in the state  T12 lighting is banned- now new skinny bulbs- people will need to change out their fixtures  EnergyStar rebate- is that our program name or is it a federal name  Could you go over how the leak repair rebate program works  What percent of people who get the leak letter take advantage of this rebate  With the ESP and RES programs, could the surveyor start installing the CFL’s because we want to make sure they do not just sit in the box  Suggestion of the tiered system with CEE is a good idea  The holiday light purchase had an issue with vendor lead time- how did that end up cost wise  The formula for TRC changed- did you run an old formula to see how it compared to the previous year.  Leak rebate program- what is the maximum amount- are some less.  CEE, tier 2 and 3- any idea how more expensive  Appreciate adding lo flow toilets  Great story for this District  Board agreed the 2012 projects look good and are on track ROUTINE BUSINESS TREASURER’S REPORT: February 29, 2012 Approval of the fund balances as of January 31, 2012: Director Hemig moved, and Director Aguera seconded, that the Board approve the treasurer’s report for the month end- ed January 31, 2012. ROLL CALL: Director Bender, absent; All other Directors, aye. SO MOVED. Approval of disbursements for February 2012: Director Aguera moved, and Director Fer- ree seconded, that the Board approve the February 2012 disbursements report. ROLL CALL: Director Bender, absent; All other Directors, aye. SO MOVED. APPROVAL OF MINUTES FOR FEBRUARY 1, 9, AND 15, 2012 Director Hemig moved, and Director Ferree seconded, that the Board approve the minutes of February 1, 9 and 15, 2012. ROLL CALL: Director Bender, absent; All other Directors, aye. SO MOVED. 11 Minutes: March 7, 2012 CLOSED SESSION PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION 54957 (E): GENERAL MANAGER PERFORMANCE PLAN REVIEW Item pulled from the agenda. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 7:53 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT _________________________________________ Tony Laliotis, President Prepared by ______________________________ Barbara Cahill, Deputy District Clerk 12 Minutes: March 7, 2012