HomeMy WebLinkAbout13-Approval of Minutes for September 4 and 18, 2013T U EE D NE#
UtitPubl District
MINUTES
To:
Board of Directors
From:
Barbara Cahill
Date:
October 02, 2013
Minutes for the Meeting Dates
Approval of Minutes for September 4 and 18, 2013
REGULAR MEETING
September 4, 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 6:01 PM in the TDPUD Board room by President Bender.
ROLL CALL: Directors Joe Aguera, Jeff Bender, Bob Ellis, Ron Hemig, and Tony Laliotis were
present.
PLEDGE OF ALLEGIANCE
Director Hemig led the Board and public in the Pledge of Allegiance.
EMPLOYEES PRESENT Neil Kaufman, Trisha Ruby, Stephen Hollabaugh, Steven Poncelet,
Bob Mescher, Kim Harris, Brian Wright, Michael Holley and Barbara Cahill
CONSULTANTS PRESENT Steve Gross
OTHERS PRESENT Juanita Schneider
CHANGES TO THE AGENDA
General Manager Holley stated there were no changes to the agenda.
PUBLIC INPUT
There was no public input.
DIRECTOR UPDATE
There were no Director updates.
ACTION ITEM
CONSIDERATION OF FORECLOSURES IN THE COMMUNITY FACILITIES DISTRICTS;
AND DELINQUENCY UPDATES FOR OLD GREENWOOD AND GRAY'S CROSSING This
item involves consideration of foreclosures of parcels in the Gray's Crossing and Old
Greenwood Community Facilities Districts; and an update on delinquent assessments.
Director Hemig moved, and Director Ellis seconded, that the Board:
• Adopt Resolution 2013-20 authorizing staff and special counsel to proceed with the
foreclosure process on all delinquent parcels in both Old Greenwood and Gray's Cross-
ing Community Facilities Districts
• Authorize the continuation of the contract for legal services with Stradling Yocca
Carlson & Rauth
ROLL CALL: All Directors aye, by voice vote. SO MOVED
1 Minutes: September 4, 2013
BUDGET
DISCUSSION OF FY14 & FY15 BUDGET: OBJECTIVES, GOALS, ASSUMPTIONS,
LABOR, AND EXISTING DEBT
Robert Mescher gave a presentation:
• Budget Schedule
o September 4 (tonight)
— Discuss objectives, goals, assumptions, and debt
o September 18
— Review the Prop 218 process
— Present Purchased Power Plan
o October 2
— Discuss operating and capital budgets of Electric & Water Utilities
— Review reserve funds
o October 16
— Discuss operating and capital budgets of supporting services
— Review revenue, rates, fees and charges
— Present a draft Financial Master Plan
o November 6
— Review the Financial Master Plan
— Present an updated water rate study
— Present a draft of the FY14 & FY15 Budget
— Hold a public hearing regarding the budget
o November 20
— Consider adoption of the FY14 & FY15 Budget
o January 15
— Hold a public hearing regarding water rates, if rate increase proposed
• Prior Budget- FY13 Approved Budget Highlights (in millions of dollars)
Operating Revenue & Investment Earnings
Transfers from Other Funds
Total Source of Funds
Operating Expenses
Debt Service
Transfers to Reserves
Capital Projects
Total Use of Funds
Total
Electric Water District
$ 23.2 $10.9 $ 34.1
1.2 3.4 4.6
24.4 Z� 14.3 �i 38.
$ 20.0
$ 7.8
$ 27.8
0.9
3.3
4.2
0.6
1.5
2.1
2.9
1.7
4.6
$ 24.4
$14.3
$ 38.7
2 Minutes: September 4, 2013
Prior Budget - FY13 Electric Expenses
Public Information
& Conservation
�
fi%
• Prior Budget - FY13 Water Expenses
Reserves, 6%
71
Electric Powei
14%
Supp
Mate
outsid
16
purchased
Power
55%
Labor, 41%
• Summary of Objectives and Goals
o Actively seek renewable energy sources as set forth in the Renewable Portfolio
o Provide reliable and high quality water and electrical power service
o Manage District resources in an open, responsible, environmentally sound manner
at the lowest practical cost
3 Minutes: September 4, 2013
• Utility rates have not increased since January 2009 for electric and January 2011 for
water
o Water rate increase for FY12 & FY13 was deferred
o Compounded inflation since 2009 is over 11 %
2009
2010
2011
2012
2013
Compounded
Electric 3.00%
0.00%
0.00%
0.00%
0.00%
3.00%
{Hater 0.00%
1.75%
1.75%
0.00%
0.00%
3.53%
Inflation (CPI-U for Dec -to -Dec) 2.71%
1.50%
2.96%
1.74%
2.00%
11.40%
• New Information
o Annual inflation is expected to be 3%
o New development activity will increase
o No new debt
o No planned electric rate increase in FY14 & FY15
o Water rates:
— Estimated annual increase of 3% in FY14 & FY15
— $5 monthly water meter surcharge (7.5%) ends December 31 st
o Labor:
— Estimated labor rate increase of 2% in FY14
— Estimated labor rate increase of 3% in FY15
— One IT employee added in FY14
— One Work Order employee restored in FY15
• Projected Debt Balances (in millions of dollars)
Electric Utility
Pension Obligation Bond
Total Electric Utility Debt
Water Utility
2006 COP - Pipeline Replacement
State Revolving Fund - Donner Lake
Dept of Water Resources - 1996
MSG 1552 - Glenshire dater System
MSG 1551 - Bridge Street Tank
Total Water Utility Debt
FY13 FY14 FY15
6.7 6.2 5.6
6.7 6.2 5.6
2-1.0
2-0.1
519.1
8.7
8.0
7.4
2.0
1.8
1.5
0.6
0.5
0.3
0.5
0.4
0.3
32.9
3 0. 8
$29.6
• Fiscal Impact: This budget workshop is part of the overall budget process that will affect
the District's spending for the next two fiscal years
There was no public input.
4 Minutes: September 4, 2013
Board discussion:
• What is the average residential water till? With the $5 meter surcharge done on
December 31, 2013; then the possible 3% increases in water rates in 2014 and 2015
would net a $3 decrease
• Would he possible water rate increase be for both 2014 and 2015?
• It seems water has a lot of debt. In forecasting out 10 to 20 years, would we need to
borrow more money? Would we continue to retire the existing debt?
• The 218 process and public hearing to raise water rates is contingent on adoption of the
budget in November.
• The budget is on its way now.
• No more questions at this high level.
WORKSHOPS
DISCUSSION OF THE DISTRICT PIPELINE REPLACEMENT — 2014 PROJECT This item
involves a discussion regarding the 2014 Water Pipeline Replacement Project.
Neil Kaufman gave a presentation:
• The Water Department has a need to replace existing pipelines in two categories:
o Pipes in poor condition requiring repeated repairs
o Pipes that are old, undersized (typically 4-inch diameter and smaller) and have
exceeded their useful life
• Staff is conducting preliminary engineering work associated with District Pipeline
Replacement — 2014 project
o Cost estimating & budgeting
o Environmental review
o Identifying existing utilities
o Coordination with other local agencies
• A number of pipeline segments for replacement have been identified
o Sanders Well yard piping
o Boca Street
o Sierra Drive
o Rainbow Drive
o Whitetail Lane
o Julian Avenue
o Northwoods Blvd
o Sun Valley Road
o Johnson Lane
o Willow Street service laterals & meter boxes
• Sanders Well yard piping
o Significant number of leaks have arisen in the past month
o Turned off for the Winter
• About 1,300 feet of pipe in Biltz Tract — Boca Street & Sierra Drive
o Single lane roads
o Likely to be rocky
o Temporary aboveground piping system
o Test case for other streets
5 Minutes: September 4, 2013
• Current project schedule
o Engineering & design — Fall 2013
o Environmental review & permitting — Fall 2013
o Advertising for Bids — February 2014
o Bid Opening — March 25, 2014
o Bid Award — April 2, 2014
o Begin Construction — May 1, 2014
o Complete Construction — October 2014
• Fiscal Impact
o Water Department is proposing $1,000,000 for the construction contract
o Bid documents will include additive alternates to provide flexibility
o Planned funding source is Capital Replacement Fund
o Other costs associated with inspection, geotechnical testing and environmental
services
There was no public input.
Board discussion:
• Will new pipe go in the same trench as the old pipe that will be removed?
• Are there more additive alternates in addition to the list?
• Go with this proposed project schedule, pipes need replacement
• Boca Street & Sierra Drive- are they priorities above all others?
• District did segments this year- was this cost effective compared to taking out a bond
and doing a lot of linear feet? Is it cost effective to jump around and do spots versus
doing a lot of main replacement- a geographic spread to make more cost effective
• What is the estimated cost?
DISCUSSION OF NEW WATER CONSERVATION PROGRAMS This item involves a
discussion of potential new Water Conservation Programs.
Trisha Ruby gave a presentation:
• District investing in conservation since 2008
o Current water conservation programs include
— Toilet rebate
— Toilet exchange
— High efficiency clothes washer water rebate
— Free water efficient measures
• Customer water usage continues to peak in summer
o Primarily driven by irrigation
o Other factors in water use
— irrigation start-up/shut-down
— improperly operated stop and drain valves
• Staff investigating pilot residential and commercial water audits
o Primarily target irrigation but also include indoor use
o Water audits are not unique
o Emphasize education on irrigation start-up/shut-down and winterizing
6 Minutes: September 4, 2013
• Use data collected to plan future water conservation measures
o Irrigation system tune-ups
o Control replacement
o New or replacement irrigation equipment
• Pilot water audit program
o Start this Fall
o Include --10 residential & 2 commercial audits
o Utilize Certified Landscape Irrigation Auditor
• Fiscal Impact: Final costs for pilot water audit program being developed
o Direct costs estimated at $3,000 for FY13
There was no public input.
Board discussion:
• Different set of problems with irrigation in the fall and the spring- good to adjust
• Am interested as I irrigate a lot in the summer
• So there are very few irrigation auditors in this area, so does this mean there is only one
in Truckee?
• Is the toilet exchange for all toilets under 1.6 gallons per flush or is it higher gallons per
flush?
ROUTINE BUSINESS
TREASURER'S REPORT
Approval of the fund balances as of July 31, 2013: Director Hemig moved, and Director
Laliotis seconded, that the Board approve the treasurer's report for the month ended
July 31, 2013. ROLL CALL: All Directors, aye. SO MOVED.
Approval of disbursements for August 2013: Director Aguera moved, and Director Ellis
seconded, that the Board approve the August 2013 disbursements report.
ROLL CALL: All Directors, aye. SO MOVED.
APPROVAL OF MINUTES FOR AUGUST 21, 2013: Director Laliotis moved, and Director Ellis
seconded, that the Board approve the minutes of August 21, 2013.
ROLL CALL: All Directors, aye. SO MOVED.
CLOSED SESSION
CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(D)(1), CONFERENCE
WITH LEGAL COUNSEL ON EXISITING LITIGATION: SIERRA PACIFIC POWER CO/DBA
NV ENERGY SCHEDULE 4 ENERGY IMBALANCE, CASE NO. ER13-247-000
CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(D)(1), CONFERENCE
WITH LEGAL COUNSEL, EXISITING LITIGATION: MERGER OF SPPCO AND NEVADA
POWER
7 Minutes: September 4, 2013
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 8:20 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Jeff Bender, President
Prepared by
Barbara Cahill, Deputy District Clerk
8 Minutes: September 4, 2013
_ E1
REGULAR MEETING
September 18, 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 Joe Aguera, Jeff Bender, Ron Hemig, and Tony Laliotis were present.
Director Bob Ellis, absent.
PLEDGE OF ALLEGIANCE
Director Laliotis led the Board and public in the Pledge of Allegiance.
EMPLOYEES PRESENT Brian Wright, Bob Mescher, Stephen Hollabaugh, Steven Poncelet,
Peter Rosales, Ian Fitzgerald, Michael Holley, and Barbara Cahill
CONSULTANTS PRESENT Steve Gross
OTHERS PRESENT Juanita Schneider and Jody Sweet
CHANGES TO THE AGENDA
General Manager Holley asked to remove agenda item No. 7, Consideration of the Purchase
of a Virtual Desktop System, and switch the order of the workshop items No. 12 and 13.
PUBLIC INPUT
Jody Sweet thanked Jim Wilson and Steve Hollabaugh for removing the tree at the Veterans
Hall. The Vets really appreciate this timely effort.
DIRECTOR UPDATE
Director Hemig stated that he cannot attend the Saturday Neighborhood Block party. Both
Directors Aguera and Laliotis said they would attend.
CONSENT AGENDA
CONSIDERATION OF THE PURCHASE OF A VIRTUAL DESKTOP SYSTEM The item involves
virtualization of District staff desktop computers.
Removed from agenda.
CONSIDERATION OF THE PURCHASE OF SECURITY CAMERAS The item involves
video and audio surveillance of District Offices at 11570 Donner Pass Road.
Minutes: Sept 18, 2013
CONSIDERATION OF THE PURCHASE OF NETWORK SWITCHES FOR THE WATER
SCADA RELIABILITY PROJECT This item involves the purchase of Cisco switches to
allow for Water SCADA RTU network connection.
CONSIDERATION OF THE EXTENSION OF A CONTRACT FOR THE 2013 FINANCIAL
AUDIT This item involves the extension of Moss Adams for the 2013 financial audit.
Director Hemig moved, and Director Laliotis seconded, that the Board approve the consent
calendar minus item No. 7 (Consideration of the Purchase of a Virtual Desktop System).
ROLL CALL: Director Ellis, absent, all other Directors aye, by voice vote. SO MOVED
BUDGET
FY14 AND FY15 BUDGET: PURCHASE POWER PLAN
Stephen Hollabaugh gave a presentation:
• Mission Statement of Truckee Donner PUD
o "The Mission of Truckee Donner Public Utility District is to provide reliable and high
quality water and electrical power services while meeting customer demand, and to
manage District resources in a safe open, responsible, environmentally sound manner
at the lowest practical cost."
• Renewable Portfolio Standard
o At such time that projected resources do not exceed projected demand, TDPUD will
strive to include qualifying resources to meet projected demand
o Truckee Donner Public Utility District resource mix will have a minimum of 33% of
renewable resources by 2020
• Conservation is Considered First Resource
o Forecast assumes that load increases by only 1 % annually in 2014 and remains flat in
2015
o Conservation is expected to reduce 1-3% of total load
— Offsets growth that would otherwise require additional resources
— Greater conservation will reduce market purchases
• History and Future Forecasted Load (GWh)
0 2008 Actual Load = 160,189 2013 Forecasted Load = 163,082
0 2009 Actual Load = 157,695 2014 Forecasted Load = 164,173
0 2010 Actual Load = 158,494 2015 Forecasted Load = 164,729
0 2011 Actual Load = 160,544
0 2012 Actual Load = 156,497
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Forecast Load GWh
Actual Load GWh
2 Minutes: Sept 18, 2013
Future Portofilio (Risk vs. Benefit)
o Future portfolio (FY14& FY15 and beyond) is intended to balance:
— Conservation
— Renewable Resources
— Cost/Rates
— Resource Diversity
— Contract Duration
— Price Volatility
Existing Resources
o Existing (FY13) renewable resources are:
— Stampede Dam — Small hydro
— Western CVP — Large hydro (sold into NCPA Pool)
— Murray City — Landfill gas
— UAMPS Pleasant Valley — Wind
— Horse Butte Wind Project UAMPS — Wind
o FY14 & FY15 includes no new renewable resources:
— No purchase of unbundled REC's
o FY16 Possible new renewable resources are:
— Waste Heat generation from Kern River natural gas
(Veyo station, carbon free)
Proposed Resource Portfolio - FY14
UAMPS Pool
Payson - Nat Gas 3.3%
Wind-PPM 0.4%
Stampede Sm
Hydro 7.5%
5-Year Mai
Purchase
41.5%
Fallon Exchange
2.7%
UAMPS Wind -
Horse Butte
25.5%
Landfill Gas -
Murray
12.3%
compressor station
3 Minutes: Sept 18, 2013
• Proposed Resource Portfolio— FY15
UAMPS Pool
Payson - Nat Gas 3-3%
11.9%
Wind-PPM 0.4%
Stampede Sm
Hydro 7.5%
UAMPS Wind -
Renewables Horse Butte
5-Year Market 45.7% 25.5%
Purchase
41.5%
Landfill Gas -
Murray
Fallon Exchange --- 12.3%
2.7%
• Renewable Portfolio Standard (RPS)
o RPS is calculated by the following equation:
• Eligible Renewables MWh / Retail Sales MWh
o Definition of Retail Sales
o "Sales of electricity by a POU to end -use customers and their tenants, measured in
MWh. This does not include energy consumption by a POU, electricity used by a POU
for water pumping, or electricity produced for onsite consumption (self -generation)."
o Will discuss in next presentation tonight
• CARB Cap and Trade
o Auction proceeds and allowance value obtained by the electric distribution utility shall
be used exclusively for the benefit of retail ratepayers of each electrical distribution
utility, consistent with the goals AB32, and may not be used for the benefit of entities
or persons other than such ratepayers.
o Settlement price ($/allowance) $10.09 (auction 1), $13.62 (auction 2), $14.00 (auction
3), $12.22 (auction 4)
o Revenue from sale of allowances consigned by TDPUD
— $242,160 (auction 1)
— $204,300 (auction 2)
— $210,000 (auction 3)
206 102 (auction 4)
$862,662 TOTAL
To be used in 2014
4 Minutes: Sept 18, 2013
• Energy Supply Costs
o The all -in budgeted energy supply cost excluding transmission and scheduling costs
are:
YEAR $/MWH
FY12 (BUDGET)
66.4
FY12 (ACTUAL)
65.1
FY13 (PROJECTION)
66.6
FY14 (FORECAST)
67.7
FY15 (FORECAST)
68.4
• Purchase Power Plan Exaenditure Detail — Budaet FY13 vs. FY14
2013 TO
BUDGET
BUDGET
2014
$ BUDGET
2013
2014
Purchased Power and Resource Costs
CHANGE
TOTAL ENERGY SUPPLY - VARIOUS
$10,918,075$11,191,445
$273,370
$66.95
$67.95
TRANSMISSION - NVENERGY
$1,081,033
$1,204,628
$123,595
SCHEDULING - NCPA
$73,226
$75,423
$2,197
WAPA COST/(CREDIT) TOWARD
MWH'S
($28,012)
($28,012)
$0
TOTAL BULK POWER COSTS
$12,044,322 $12,443,484
$399,162
3.2%
1,631
TOTAL ANNUAL MWH 163,082 164,713
1.00%
$1.69
TOTAL DELIVERED COST $/MWH $73.85 $75.55
2.24%
5 Minutes: Sept 18, 2013
• Purchase Power Plan Expenditure Detail — Budget FY14 vs. FY15
2014 TO
BUDGET
BUDGET
2015
$ BUDGET
2014
2015
Purchased Power and Resource Costs
CHANGE
TOTAL ENERGY SUPPLY - VARIOUS
$11,191,445
$11,331,030
$139,584
$67.95
$68.79
TRANSMISSION - NVENERGY
$1,204,628
$1,216,674
$12,046
SCHEDULING - NCPA
$75,423
$75,423
$0
WAPA COST/(CREDIT) TOWARD
MWH'S
($28,012)
($28,012)
$0
TOTAL BULK POWER COSTS
$12,443,484
$12,595,115
$151,630
1.2%
17
TOTAL ANNUAL MWH 164,713 164,729
0.01 %
$0.91
TOTAL DELIVERED COST $/MWH $75.55 $76.46
1.19%
• Resource Plan:
o Achieves a projected FY14 all -in cost in the range of $75.55/MWh
o Achieves a projected FY15 all -in cost in the range of $76.46/MWh
o Minimizes price volatility due to fuel costs and weather risk
There was no public input.
Board discussion:
• Does the Kern River project have anything to do with the Payson Project? How can an
isolated place turn out to be a benefit for us?
• What is in the market mix?
• What is the status of the lawsuits for the Cap & Trade? Could it change significantly?
Could it take some allocations away?\
• Power costs will be offset by AB32
• Figures look good and steady
• Get nervous with carb money
• Cannot remember the decision on the policy as to how to use AB32 funds. Did we
consider putting money toward rate stabilization? The Board can make a different
finding in 2016.
• Kern River project (waste heat) will run 24/7 as the pipeline is always pumping natural
gas.
• Would UAMPS put another project together, other than just another power plant?
• The 5 year market purchase ends in 2017, so we have 3-1/2 years to replace it.
• Report looks fine
6 Minutes: Sept 18, 2013
WORKSHOP
DISCUSS CEC CHANGES TO THE RENEWABLE PORTFOLIO STANDARD (RPS)
DEFINITION This item involves CEC changes to the RPS definition.
Stephen Hollabaugh gave a presentation:
• 2002, original RPS adopted and required 20% of generation be sourced from renewable
resources by 2017
o SB 1078
o Local publically owned utilities (POU's) are exempt from RPS requirements but must
develop their own RPS policies
• 2006 requirement accelerated to 20% by 2010
o SB 107
• 2011, State's RPS sets requirements applicable to POU's and required 33% by 2020
o SB 1x2
o Development of the CEC's PUD enforcement regulations started in 2011 after
passage of SB 1 x2
• Board approved TDPUD's first RPS in 2004
o Board defined qualifying resources as non -fossil fuel generation including all
hydroelectric resources
• March 2007 Board replaced and updated RPS and set a minimum target of 21 %
renewables by 2010
o Qualifying resources included all hydroelectric resources
o RPS calculated by total qualified resources divided by total MWh purchased that year
— Total MWh purchased that year included transmission and distribution losses
• December 2011 Board updated RPS
o Included CEC definition of eligible renewable resources
o RPS included eligible renewables including renewable energy credits (REC's)
— This was the first time total MWh's sold to end -use customers was used in the
calculation
• 2011, Board also approved RPS Enforcement Program that included an annual review of
RPS Procurement Plan
• 2004 thru the present, CEC Guidebook for RPS Eligibility continued to change
• POU enforcement regulations started in 2011 and regulations will become effective on
October 1, 2013
• RPS enforcement regulations for the first time define for a specific purpose the term
"Retail Sales"
o "Sale of electricity by a POU to end -use -customers and their tenants, measured in
MWh. This does not include energy consumption by a POU, electricity used by a POU
for water pumping, or electricity produced for onsite consumption (self -generation)."
• TDPUD's Renewable Energy Resources Procurement Plan will need to be updated and
revised
• These Changes to include:
o Retail Sales definition; all retail sales less own use and water pumping
o Procurement targets (section 3)
o Carryover language for REC's
o Reporting language (section 11)
7 Minutes: Sept 18, 2013
o Prior calculation methods
• Correctly used when originally implemented
• Includes
o "Old RPS% Board Defined" — MWh of Board defined renewables that included large
hydro divided by all retail sales
o "Current RPS%" — MWh of all eligible renewables divided by all retail sales
o "New RPS%" — MWh of eligible renewables divided by CEC defined retail sales
Changing RPS Definition by CEC
TDPUD Use +
CEC Definition of Sales
Old RPS%
RPS %
RPS %
Year
Retail Sales (MWh)
Water Pumping
Retail Sales (MWh)
Board Defined
Current
New
2012
146,014
8,883
137,132
39.4%
42.0%
2011
149,978
8,340
141,638
33.0%
35.0%
2010
147,647
9,402
138,244
22.3%
23.8%
2009
146,875
10,539
136,336
34.2%
27.7%
29.8%
2008
148,305
11,003
137,302
24.4%
17.2%
18.6%
2007
147,091
12,107
134,984
8.9%
0.4%
0.4%
2006
144,269
11,772
132,497
20.7%
2005
136,339
11,491
124,848
9.9%
2004
135,253
12,261
122,992
0.05%
There was no public input.
Board discussion:
• The portion the PUD consumes- does this take away from the percent to regulation?
Or does it just affect retail sales?
• How does this new calculation figure with the powers to be?
• Why does the CEC do all this for such inconsequential numbers? The new calculation
will make everyone look like they are doing better and they are really not.
STATUS REPORT ON THE WATER METER PROJECT PROGRESS This item involves a
status report regarding the water meter project.
Brian Wright gave a presentation:
• The Water Department began installation of the automated meter reading system in
September of 2008
• The initial phases (2008-2010) were performed by Measurement Control Systems
• All of the meter installations from 2011 to the present have been completed by District
staff
• As of September 9, 2013 a total of 11,657 meters have been installed
0 700 commercial
0 10,957 residential
0 93% of customers
• These totals include both new construction and new meters installed on existing customer
connections
• A total of 896 locations remain on the "Red Flag List"
o Locations where a meter has not yet been installed
• The main factors preventing previous meter installations have been:
8 Minutes: Sept 18, 2013
i
0
0
0
0
• R
Meter box was buried and/or could not be located
Meter box was paved over or located under a deck, large rocks, tree, fence or similar
obstruction
No meter box, only a curb stop
Meter box was too small, too deep or damaged
Excessive groundwater
Broken/inoperable valves
e
Area
Quantity
Armstrong/Gateway
182
Donner Lake
137
Downtown/Olympic Heights
27
Prosser/Northeast
128
Sierra Meadows/Ponderosa Palisades
140
Tahoe Donner
1366
Commercial (Various Locations)
16
• Water Meter Project Completion Plan
o Three -person meter box installation crew created within Water Department field staff
o The Glenshire and Hirschdale areas have been completed
o Olympic Heights and a large portion of the commercial meters will be completed by the
end of September 2013
o Prosser Heights and Prosser Lakeview to be completed in the summer of 2014
o Sierra Meadows 2015
o Tahoe Donner in 2016-2017
o Armstrong and Gateway in 2018
• Customer Information System (CIS)
o CIS has been updated to address changing information in the field
— Multiple water services feeding a single residential structure
— Single services feeding multiple residential structures
— Developer/builder often provided inaccurate information regarding meter/service
locations
• Water Usage Trends
o Currently, approximately 7% of customers have a leak beyond the meter box
(compared to 10% in 2011)
o The main cause of leaks remains unchanged:
— Malfunctioning, damaged or improperly operated irrigation systems
— Corroded or improperly operated stop and drain valves
— Leaking toilets
— Corroded or damaged customer -owned service laterals
o The District continues to be strongly pro -active in regards to notifying customers of
pipe breaks and large customer leaks during the winter months
9 Minutes: Sept 18, 2013
o Detection and notification of leaks in the summer presents more challenges as
seasonal irrigation usage tends to mask leaks
• Average Daily Metered Consumption (gallons per connection per day)
o As expected, there are significant variations in water consumption when comparing
winter to summer
o Available data indicates a slight upward trend in summer water usage
o Winter water usage has remained constant
2011 2012 2013
Summer (May -September) 269 317 324
Winter (October -April) 103 103 103
• Fiscal Impact
o Expenditures related to the water meter project have been funded from the Reserve
for Future Meters Fund
o Revenues
— Fund began with $1.4 million
— $3.7 million revenue from 2009-2013 (Water Meter Surcharge)
— Additional $250,000 directed into the fund in 2011
o Expenditures: $4.3 million to date
o The projected balance in the fund for the end of 2013 is approximately $900,000
o Future expenditures are estimated at $450,000 per year for the next five years
o Final 3 years, project funding will come from rates
Public input:
• Why are there 37 meters to install at Donner Lake- thought they were all installed
during water system improvements
Board discussion:
• So the 3 man crew has to locate the meter, go to the main, dig out line and put in new
meter box. Some places don't have much room.
• Hugh undertaking. Great job.
• Does the $450,000 per year include both materials and labor
• The water meter surcharge is almost done. What is the $900,000 in the fund now?
• How many meters were installed in 2013? Seems like it is about 180 per year. One to
two meters per day?
• Is the crew full time, is this all they do? Has this diversion led to a shortage in
any other area? Are the crews not getting to routine maintenance because of the dedi-
cation of staff to do this project?
• Breakdown of numbers: staff versus contractors. Resource standpoint versus financial
standpoint.
• What is the deadline year to have all meters installed?
DISCUSSION OF THE PROCESS FOR ADOPTING NEW WATER RATES This item
involves a discussion Prop 218 and the process for adopting new water rates.
Robert Mescher gave a presentation.:
• California's Proposition 218
o Adopted in 1996
o Effective 1997
10 Minutes: Sept 18, 2013
11
o "Right to Vote for Taxes Act"
o Courts ruled that Prop 218 includes water utility rate changes
• FY14 & FY15 Budget
o Modest water rate increase needed in FY14 & FY15
— Board authorized HDR to perform rate and cost of service study
— HDR is scheduled to present results on November 6
o Must follow Prop 218
• Prop 218 Requirements
o Rates must be based on actual cost of service
o Notice must be mailed to all rate payers
o Notice may be mailed to all property owners
o Public hearing must be held after 45 days of notice
o If majority of rate payers protest, then rates are rejected
o Rates can become effective 30 days after public hearing
• Effect of Water Rate Changes and Meter Surcharge
Average Meter
Residential Surcharge Total
Current $60.21 $5.00 $65.21
Increase
1% $60.81 $0.00 $60.81
2% $61.41 $0.00 $61.41
3% $62.02 $0.00 $62.02
4% $62.62 $0.00 $62.62
5% $63.22 $0.00 $63.22
• Schedule
o October 16
— Present draft summary of FY14 & FY15 Budget
— Present draft of 10-year Financial Master Plan
— Propose water rate increase
o November 6
— HDR to present updated water rate and cost of service study
— Consider approving water rate increase subject to public hearing
o November 8
— Mail notices of public hearing to customers and property owners
— Advertise public hearing in local newspaper
o January 15
— Hold a public hearing regarding proposed water rates
— Consider adopting ordinance for new water rates
o February 14
— Adopted water rates can become effective
— Effective for utility bills printed after March 15
• This workshop is part of the overall budget process that will affect the District's
revenue and spending for the next two years
Minutes: Sept 18, 2013
There was no public input.
Board discussion:
• What is the required notification; what is the obligation of the District to determine a
protest versus a non -protest?
• Is the protest done in person or in writing?
• Do the rate payers have a chance at the hearing to vote or is ti just a protest?
• The HDR water study report will give the Board an opportunity to look at volumetric
pricing. Could change rates based on the study. It is a chance to fine tune the volumet-
ric charge. Say higher volume user may pay more with new charges or could pay less.
• Will HDR provide different options?
• Would be good to have different detailed options -what would a change in volumetric
charges mean? Different scenarios.
• Provide HDR with stratified water data; meter consumption data
• What would happen if we introduced two more tiers? What model should we use? 0
to 5,000, 5001 to 10,000- what numbers should be used?
• Plug in individual meter data for usage model.
• What would adding in tiers do to our rate structure?
• This would be a lot of work. Can HDR do this- get the Board close enough?
• What if ratepayers reject the new rates structure?
CLOSED SESSION
CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(D)(4), CONFERENCE
WITH LEGAL COUNSEL ON DECIDING WHETHER TO INITIATE LITIGATION: MERGER
OF MID AMERICA AND NV ENERGY
RETURN TO OPEN SESSION
Report from Closed Session
There was a motion, a second and a unanimous vote (Director Ellis, absent) to authorize staff
to initiate litigation by intervening in the Merger of Mid -America and NV Energy.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 7:30 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Jeff Bender, President
Prepared by
Barbara Cahill, Deputy District Clerk
12 Minutes: Sept 18, 2013