The URL can be used to link to this page

Home My WebLink About12-Approval of Minutes for October 2 and 16, 2013TRUCI EE DONNER Public Utilit District MINUTES To: Board of Directors From: Barbara Cahill Date: November 06, 2013 Minutes for the Meeting Dates Approval of Minutes for October 2 and 16, 2013 �� 11 REGULAR MEETING October 2, 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 6:10 PM in the TDPUD Board room by President Bender. ROLL CALL: Directors Joe Aguera, Jeff Bender and Bob Ellis were present. Directors Ron Hemig and Tony Laliotis were absent. PLEDGE OF ALLEGIANCE Director Ellis led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT Mark Thomas, Bob Mescher, Brian Wright, Ian Fitzgerald, Stephen Hollabaugh, Michael Holley and Barbara Cahill CONSULTANTS PRESENT Steve Gross OTHERS PRESENT Jennifer Thomas and Ryan Thomas CHANGES TO THE AGENDA General Manager Holley said there were no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Ellis attended the Northern California Power Agency (NCPA) conference at Squaw Creek. There were many speakers on various subjects regarding the energy industry. Director Aguera also went to some NCPA conference seminars and classes. There was a lot of information on the electric industry. Attendees all seem to have the same questions and problems. Projects are difficult to complete when things are always changing and the out- come is unknown. Director Laliotis asked President Bender to relay his thanks to the District for holding the Ta- hoe Donner Neighborhood block party. CONSENT CALENDAR CONSIDERATION OF THE PURCHASE OF A VIRTUAL DESKTOP SYSTEM The item involves virtualization of District staff desktop computers. 1 Minutes: October 2, 2013 CONSIDERATION OF AN UPDATE TO THE TDPUD'S "RENEWABLE ENERGY RESOURCES PROCUREMENT PLAN" This item involves an update to the TDPUD's "Renewable Energy Re- sources Procurement Plan". Director Aguera moved, and Director Ellis seconded, that the Board approve the consent cal- endar. ROLL CALL: Directors Hemig and Laliotis were absent; all other Directors aye, by voice vote. SO MOVED ACTION ITEMS CONSIDERATION OF A RESOLUTION TO COMMEND VERN SMITH FOR HIS MANY YEARS OF SERVICE This item involves adopting a Resolution for Vern Smith. Director Ellis moved, and Director Aguera seconded, that the Board adopt the resolution rec- ognizing Vern Smith for his many years of service. ROLL CALL: Directors Hemig and Laliotis were absent; all other Directors aye, by voice vote. SO MOVED CONSIDERATION OF A RESOLUTION TO COMMEND MARK THOMAS FOR HIS MANY YEARS OF SERVICE This item involves adopting a Resolution for Mark Thomas. Director Aguera moved, and Director Ellis seconded, that the Board adopt the resolution rec- ognizing Mark Thomas for his many years of service. ROLL CALL: Directors Hemig and Lali- otis were absent; all other Directors aye, by voice vote. SO MOVED BUDGET FY14 and FY15 Budget Presentations: (A) Operating/Capital Budget: Electric Operations (B) Operating/Capital Budget: Water Operations Bob Mescher gave a presentation: • Budget Process Schedule o September 4 — Mission, goals and objectives — Budget assumptions — Organization chart — Labor — Existing debt o September 18 — Purchased Power Plan — RPS definition change by CEC — Overview of Prop 18 process o October 2 (tonight) — Electric and Water operational and capital budgets o October 16 — Support services operational and capital budgets — Revenue, rates, fees and charges — Financial Master Plan — Electric and Water reserves — Set public hearing date for budget 2 Minutes: October 2, 2013 o November 6 — Draft FY14 & FY15 Budget — Financial Master Plan — Water Rate Study — Public Hearing — Draft budget — Set public hearing date for water rates o November 20 — Consider adopting budget o January 15 — Public Hearing — Water rates — Consider adopting water rate ordinance o February 15 — Water rates can become effective • District Code requires the District to prepare a two-year budget • On September 4, Staff presented the following assumptions: 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 Estimated water rate annual increase of 3% in FY14 & FY15 o $5 monthly water meter surcharge (7.5%) ends December 31 st o Estimated labor rate increase of 2% in FY14 o Estimated labor rate increase of 3% in FY15 o One IT employee added in FY14 o One Work Order employee restored in FY15 • District Average Annual Spending Infrastrucl $6 Establishing Reserves - $1.8IV 5% Public Information & Conservation Programs - $1.5M, 4% Supplies, Material & Other - $3.OM, S% $6.7M, 18% d Power - A, 27% anal Labor - M, 21% 3 Minutes: October 2, 2013 • Electric Department o Electric Utility revenue — No rate increase — Budgeted demand flat in FY14; 1 % increase in FY15 — Reorganization of Power Supply/GIS departmental expenses — Department name changed to IT/GIS department — All District IT costs and responsibilities consolidated into one department — Provides for better management of IT resources — The 2013 budget and actuals normalized to account for these changes o Electric Operations — System maintenance — Tree trimming — High level of RPS o Electric Capital Projects — Master Plan — SCADA Reliability Improvement — Donner Lake Substation — New construction anticipated to increase compared to recent years Electric Department: Comparison of FY13, FY14 & FY15 Budgets (in thousands of dollars) Budgets %Variance FY14 FY15 VS. vs. FYI FY14 FY15 FYI FY14 Operating Expenses $ 3,134 $ 3,269 $ 3,409 4% 4% Maintenance Expenses 468 459 483 -2% 5% Total O&M Expenses $ 3,602 $ 3,728 $ 3,892 3% 4% Capital Expenditures 2,675 2,565 2,636 -4% 3% Total Department Expenditures $6,277 $6,293 $6,528 0% 4% Electric Department Capital Projects & Equipment (in thousands of dollars) FY14 FY15 Rate Funded Electric Master Plan Projects Upgrade Donner Lake Substation SCADA Security Routine Replacements Poles, Reclosures, Regulators, Transformers, Meters Distribution Replacements & Improvements Line & Extension Upgrades Various District Projects Total Rate Funded Projects Replacement Vehicles funded by Vehicle Reserve Total Electric Projects $ 484 $ 563 348 899 202 - 240 250 396 418 264 278 152 160 $ 2,086 $ 2,568 $ 479 $ 68 $ 2,5b5 $ 2,b3b 4 Minutes: October 2, 2013 • Water Department o Water Utility revenue requirements — Estimated water rate annual increase of 3% in FY14 & FY15 — Budgeted demand 1 % annual increase in FY14 & FY15 o Water Operations — No new employees — Reduced energy costs for pumping due to increased efficiencies and pipeline re- placement — Some operational labor shifted to capital projects — Water Capital Projects — Pipeline replacement — Donner view replacement — Pump station replacement — Water meter installations • Water Department Comparison of FY13, FY14 & FY15 Budgets (in thousands of dollars) Budgets %Variance FY14 FY15 vs. vs. FY13 FY14 FY15 FY13 FY14 Operating Expenses $2,261 $2,320 $2,383 3% 3% Energy Costs 1,474 1,306 1,307 -11 % 0% Maintenance Expenses 1,410 1,405 1,440 0% 2% Total O&M Expenses $ 5,145 $ 5, 031 $ 5,130 -2% 2% Capital Expenditures 1,575 1,873 1,267 19% -48% Total Department Expenditures $6,720 $6,904 $6,397 3% -8% • Water Department Capital Projects & Equipment (in thousands of dollars) FV1A Rate Funded Pipeline Replacement Donner View Replacement Misc Facility Renovation Pump Station Replacement Total Rate Funded Projects Water Meters Funded by Water Meter Surcharge Replacement Vehicles funded by Vehicle Reserve Total Water Projects $ 1,209 156 65 !iYL U $ 421 $ 395 $ 450 $ 48 $ 96 $ 1,873 $ 1,267 5 Minutes: October 2, 2013 There was no public input. Board discussion: • Does the District anticipate adding new debt for projects? • Electric debt is now at 4% and water debt is at 16%- where will we be in two years? • In 2014, will rate funds be used for projects or will they use reserves? • Look forward to the next meeting where there will be more budget detail to clarify things. • FY15 rate funded project is a surprise- but the average over the next two years is $1 million per year. • Solid plan • Thank -you ROUTINE BUSINESS TREASURER'S REPORT Approval of the fund balances as of August 31, 2013: Director Aguera moved, and Di- rector Ellis seconded, that the Board approve the treasurer's report for the month ended Au- gust 31, 2013. ROLL CALL: Directors Hemig and Laliotis were absent; all other Directors aye, by voice vote. SO MOVED Approval of disbursements for September 2013 Director Aguera moved, and Director Ellis seconded, that the Board approve the September 2013 disbursements report. ROLL CALL: Directors Hemig and Laliotis were absent; all other Directors aye, by voice vote. SO MOVED APPROVAL OF MINUTES FOR SEPTEMBER 4 and 18, 2013 Director Ellis moved, and Di- rector Aguera seconded, that the Board approve the minutes of September 4 and 18, 2013. ROLL CALL: Directors Hemig and Laliotis were absent; all other Directors aye, by voice vote. SO MOVED CLOSED SESSION CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(D)(4), CONFERENCE WITH LEGAL COUNSEL ON DECIDING WHETHER TO INITIATE LITIGATION: ONE CASE 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 7:45 TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jeff Bender, President Prepared by Barbara Cahill, Deputy District Clerk 6 Minutes: October 2, 2013 REGULAR MEETING October 16, 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, 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 Ian Fitzgerald, Seven Poncelet, Bob Mescher, Neil Kaufman, Brian Wright, Kathy Neus, Michael Holley and Barbara Cahill CONSULTANTS PRESENT Steve Gross OTHERS PRESENT Juanita Schneider CHANGES TO THE AGENDA General Manager Holley said there were no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Hemig stated there has not been a Municipal Utility Financing Authority (MUFA) meeting lately, but the group is considering scheduling one. Director Laliotis thanked District staff for participating in the Big Truck Day event. The PUD displays had long lines and the Conservation booth was busy. They did a great job. Director Bender also thanked the staff for being part of Big Truck Day. CONSENT CALENDAR CONSIDERATION OF FINAL COMPLETION OF THE DISTRICT PIPELINE REPLACEMENT — 2013 PROJECT This item involves Final Completion of the District Pipeline Replacement — 2013 Project with A&K Earthmovers and recording of the Notice of Completion. Minutes: October 16, 2013 SCHEDULE A PUBLIC HEARING REGARDING THE ADOPTION OF THE FY14 AND FY15 BUDGET Director Laliotis moved, and Director Ellis seconded, that the Board approve the consent calendar. ROLL CALL: All Directors aye, by voice vote. SO MOVED BUDGET ITEMS FY14 AND FY15 OPERATING/CAPITAL BUDGET PRESENTATIONS: A) BOARD OF DIRECTORS AND GENERAL MANAGEMENT B) ADMINISTRATIVE SERVICES C) PUBLIC INFORMATION & CONSERVATION D) IT/GIS E) DISTRICT BUDGET OVERVIEW Robert Mescher gave a presentation: • Budget Process Schedule o September 4 ■ Mission, goals and objectives ■ Budget assumptions ■ Organization chart ■ Labor ■ Existing debt o September 18 ■ Purchased Power Plan ■ RPS definition change by CEC ■ Overview of Prop 18 process o October 2 ■ Electric and Water operational and capital budgets o October 16 (tonight) ■ Set public hearing date for budget ■ Support services operational and capital budgets ■ Budget summary ■ Financial Master Plan ■ Revenue requirements ■ Electric and Water reserve balance projections o November 6 ■ Water Rate Study — Shawn Koorn, HDR ■ Set public hearing date for water rates ■ Draft FY14 & FY15 Budget and Financial Master Plan ■ Public Hearing — Draft budget o November 20 ■ Consider adopting budget o January 15 ■ Public Hearing — water rates ■ Consider adopting water rate ordinance o February 15 ■ Water rates can become effective 2 Minutes: October 16, 2013 District Code requires the District to prepare a two-year budget On September 4, Staff presented the following assumptions: 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 Estimated water rate annual increase of 3% in FY14 & FY15 o $5 monthly water meter surcharge (7.5%) ends December 31 st o Estimated labor rate increase of 2% in FY14 o Estimated labor rate increase of 3% in FY15 o One IT employee added in FY14 o One Work Order employee restored in FY15 Costs of supporting services are shared between Electric and Water o Board of Directors and General Management o Administrative Services o Public Information & Conservation o IT/GIS Board of Directors and General Management o $15,000 additional election expense every other year o $21,000 increase in miscellaneous expense primarily due to demographic changes of medical plan participants and industry meetings o No capital expenditures Administrative Services o $60,000 decrease in bad debt expense o $40,000 decrease in meter reading expense o $20,000 decrease in office supplies o $8,000 decrease in miscellaneous expenses o Work order position restored in FY15 if construction increases o No capital expenditures Public Information & Conservation o $53,000 decrease in electric conservation programs o $35,000 decrease in water conservation programs o $10,000 capital project to design improved warehouse lighting IT / GIS o Reorganization of Power Supply/GIS expenses o All District IT costs and responsibilities consolidated o Provides for better management of IT resources o The FY13 budget and actuals normalized o $115,000 increase primarily due to one additional employee o $1,601,000 and $890,000 in FY14 and FY15 capital projects o Increase of $430,000 over FY13 to improve reliability of the District's SCADA and communication systems 3 Minutes: October 16, 2013 • Comparison of Supporting Department Budgets (in thousands) FY13 FY14 FY15 F14 vs FY13 FY15 vs FY14 Board & GM Operating $1,210 $1,231 $1,301 2% 6% Admin Services Operating 2,553 2,425 2,550 -5% 5% Public Information & Conservation Operating 1,793 1 1,705 1,738 -5% 2% Capital - - 10 IT/GIS Operating 1,001 1,116 1,227 11% 10% Capital 1 1,170 1,601 890 1 37% -44% Total $7,727 1 $8,078 $7,716 1 5% -4% • Comparison of FY14 Budget to FY13 Budget (in thousands) FY 13 Budget FY 14 Budget - DRAFT % Variance Electric Water Total Electric Water Total Electric Water Total Revenue $23,240 $10,910 $34,150 $23,330 $10,800 $34,130 0% -1% 0% Expenses 19,990 7,710 27,700 20,390 7,590 27,980 2% -2% 1% Income $3,250 $3,200 $6,450 $2,940 $3,210 $6,150 Plus: From Funds $1,150 $3,300 $4,450 $2,380 $2,850 $5,230 107% -14% 18% Less: Debt Service $890 $3,320 $4,210 $860 $3,320 $4,180 -3% 0% -1% Capital Projects 2,890 1,720 4,610 3,540 2,590 6,130 22% 51% 33% To Reserves 620 1,460 2,080 920 150 1,070 48% -90% -49% Surplus (Deficit) • Comparison of FY15 Budget to FY14 Budget (in thousands) FY 14 Budget - DRAFT FY 15 Budget - DRAFT % Variance Electric Water Total Electric Water Total Electric Water Total Revenue $23,330 $10,800 $34,130 $23,560 $11,213 $34,773 1% 4% 2% Expenses 20,390 7,590 27,980 20,910 7,850 28,760 3% 3% 3% Income $2,940 $3,210 $6,150 $2,650 $3,363 $6,013 Plus: From Funds 2,380 2,850 5,230 2,000 2,770 4,770 -16% -3% -9% Less: Debt Service $860 $3,320 $4,180 $890 $3,330 $4,220 3% 0% 1% Capital Projects 3,540 2,590 6,130 2,850 2,653 5,503 -19% 2% -10% To Reserves 920 150 1,070 910 150 1,060 -1% 0% -1% Surplus (Deficit) - - - - - - • This budget workshop is part of the overall budget process that will affect the District's spending for the next two fiscal years 4 Minutes: October 16, 2013 There was no public input. Board discussion: • Election expenses- is that an increase or an expense every two years? • Where do the "From Funds" come from? What does this mean? • In the 2014 draft budget, was the 3% included in the water revenue; there is some new construction going on, so there are enough homes to show a little bit of an increase • Debt service, Electric has $890,000 in FY13, $860,000 in FY14- thought debt was retiring in the Electric side- is the electric bond paid off? • Why is there a $20,000 change in the General Manager/Board of Directors medical- is it just due to demographic changes like adding marriage and children. FINANCIAL MASTER PLAN REVIEW, PROJECTED REVENUE, AND PROJECTED RESERVE BALANCES Bob Mescher gave a presentation: • Financial Master Plan o Presented to the Board periodically since 2006 o Tool to ensure progress towards Board's long-term financial goals and to identify any challenges 0 10-year span • Assumptions 0 1 % annual customer growth 0 3% annual inflation o No staffing changes after FY15 o No new debt o Interest earnings 1 % in FY16, 2% in FY17 & FY18 and 3% thereafter o Continued cash and reserve goal for the Electric Utility ■ 180 days of annual expenditures ■ $3 million rate reserve goal ■ $1 million capital replacement reserve o Continued $7 million reserve goal for the Water Utility • Electric Financial Master Plan (thousands) ELECTRIC FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 NU Income $ 3,119 $ Z830 $ Z695 $ Z446 $ 1,862 $ 1,949 $ 1,899 $ Z333 $ Z779 $ Z995 Cap &Trade Proceeds. 863 860 860 860 860 860 860 0 0 0 Facility Fees 105 105 150 150 150 150 150 150 150 150 Fbte4urdedcapital projects (3,544) (Z851) (2919) (2988) (z892) (2456) (2530) (2606) (2,6B4) (2765) Change in Operating Cash $ 543 $ 944 $ 786 $ 468 $ (20) $ 503 $ 379 $ (123) $ 245 $ 380 Cash &FbseneBalances $12,728 $13,672 $14,458 $14,926 $14,905 $15,408 $15,785 $15,662 $15,906 $16,287 (range in utility rates a.U% 0.0'/0 0.0% 1.0 0 3.0'/0 a0% 20D 5 Minutes: October 16, 2013 • Water Financial Master Plan (thousands) WATER FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Net income $ 2,217 $ 2,419 $ 2,695 $ 3,034 $ 3,274 $ 3,572 $ 3,844 $ 4,126 $ 4,448 $ 4,731 Facility fees less allocated debt 262 279 301 318 331 414 415 417 419 421 Debt principle payments (1,261) (1,315) (1,362) (1,417) (1,320) (1,375) (1,437) (1,332) (535) (559) Rate -funded capital projects (2,589) (2,653) (2,422) (2,334) (2,400) (2,468) (2,538) (2,609) (3,383) (3,659) Change in Cash and Reserves $ (1,371) $ (1,270) $ (789) $ (399) $ (116) $ 143 $ 284 $ 602 $ 949 $ 934 Cash & Reserve Balances $ 7,190 $ 5,919 $ 5,130 $ 4,730 $ 4,616 $ 4,759 $ 5,043 $ 5,646 $ 6,594 $ 7,527 Debt service coverage 1.43 1.50 1.61 1.72 2.08 2.23 2.32 2.62 4.80 5.02 (1.25 required until 2036) Debt Principal Balance 20,823 19,508 18,146 16,729 15,408 14,034 12,596 11,264 10,729 10,170 Change in utility rate 3.0% 3.0% 3.0% 3.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5°/ Projected Reserve Balances o Electric Department Projected Reserve Fund Balances (in thousands) FY13 FY14 FY15 FY15 Yr End Budget Budget Yr End (est) Activity Activity Operating Cash Reserve Debt Service Coverage Total Operating Reserves Capital Replacement Fund Reserve for Future Water Meters Total Capital Reserves Total Reserves $ 1,890 $ 3,705 $ 5,595 $ Goal $ - $ 1,890 $ - 524 3,181 3,000 $ (524) $ 5,071 $ 3,000 $ 1,969 $ (1,338) $ (631) $ 997 394 450 $ 2,966 $ (1,732) $ (1,081) $ - $ 4,000 153 153 153 $ 4,000 $ 8,561 1 $ (1,732) $ (1,605) 1 $ 5,224 $ 7,000 • Water Department Projected Reserve Fund Balances (in thousands) Operating Cash Reserve Debt Service Coverage Total Operating Reserves Capital Replacement Fund Reserve for Future Water Meters Total Capital Reserves FY13 Yr End (est) FY14 FY15 Budget Budget Activity Activity $ 1,890 $ 3,705 $ 5,595 $ FY15 Yr End Goal $ - $ 1,890 $ - 524 3,181 3,000 $ (524) $ 5,071 $ 3,000 $ 1,969 $ (1,338) $ (631) $ 997 394 450 $ 2,966 $ (1,732) $ (1,081) $ - $ 4,000 153 153 153 $ 4,000 Total Reserves $ 8,561 1 $ (1,732) $ (1,605)1 $ 5,224 $ 7,000 6 Minutes: October 16, 2013 • The Finance Master Plan validates that the proposed FY14 and FY15 Budget is consistent with the District's long-term goals There was no public input. Board discussion and changes to draft Financial Master Plan model: • Easier to do a 2.5% electric rate increase one year and not do a 1 % for 3 years. • Is there a cost internally to change electric rates often? • Does electric revenue include Cap & Trade revenue? • Change the model to reflect the time value by raising rates one year earlier. • What are the electric rate funded projects? • Electric Master Plan- is the District keeping up on electric capital projects or falling behind? • How definite is the Cap & Trade money through 2020? Loosing this would be a significant loss of revenue. We need to prepare for that. • Electric incremental increases • Look at rate stabilization value • What is inflation now and in the model? • Why is there larger debt service for the Water Department versus the Electric Department? • Why does the water debt drop in FY22 to 535,000- what is paid off? • Rate increase should be close to the estimated future inflation. • Will there be water debt service beyond 2023? • What would happen if flatten estimated rates -how would that affect capital projects? • What will HDR/Shawn Korn have as his water rate analysis presentation? • What happens on the master plan model if water rates are increased at 4% in 2014 and 2015? • Reserves would drop if there are not adequate rate increases. • Is the District's borrowing capacity good if a disaster occurs? Do we have options? • A 2 million dollar impact to reserves is not scary. • Prefer a uniform rate structure. • Like the original staff recommended water rate increase —fine with the 3% for the next two years- more level. • Will Prop 218 allow the District to raise rates for up to 5 years with one action? • Under Prop 218, if the target percent increase is not reached in 5 years, could the District go past the 5 years? • What are the costs to raise water rates? • Change the financial model to see what a 5% increase in 2014 and 3% for the next 9 years would do. • Still have expenses for water meter install costs. • Prefer to spread out rate increase- there are still hard economic times. • When will the Board discuss Prop 218 and what the District wants to include? • Are we good on electric reserves- should we change the reserve goals? • Rate stabilization growing- happy with that. • When will reserve balances be covered again? 7 Minutes: October 16, 2013 WORKSHOPS STATUS REPORT OF THE DISTRICT'S S13-1 SOLAR PROGRAM This item involves an update of solar installs and S131. Kathy Neus gave a presentation: • State's Million Solar Roofs Program o SB-1 passed o Unfunded State Mandate o Must expend $1,773,408 over 10 years • Rebate amounts set by the Board 0 2013 $2.95 / Watt Installed 0 2014 $2.66 / Watt Installed 0 2015 $2.39 / Watt Installed 0 2016 $2.15 / Watt Installed 0 2017 $1.94 / Watt Installed • Federal tax credit extended o $2,000 to 30% of solar project • Summary of the Dast 5 vears Applications Installations kW Installed Rebate Dollars 2008 16 10 35.3 $141, 000 2009 15 6 127.6 $115, 000 2010 21 8 27.1 $97,000 2011 15 15 55.7 $144,000 2012 9 8 25.7 $63,000 Totals 76 47 271.4 $560,000 **2009 Truckee Sanitary District installed a 105 kilowatt system • 2013 Information 0 19 applications 0 2 installations completed ■ $11,684 rebated ■ 4.2 kW installed o $173,475 reserved 0 78.5 kW anticipated to be installed • 100% of all systems installed under operational • $1,091,460 remaining • Customer Charge the SB-1 program are fully functional and o Residential $0.60 / month o Small Commercial $5.00 / month o Medium Commercial $10.00 / month o Large Commercial $15.00 / month There was no public input. 8 Minutes: October 16, 2013 Board discussion: • Do all funds have to be spent by 2017? What happens if they are not spent? • How do we know that all systems are working? • One city had significant issues and failures. • Are most installs residential? • Do you as staff set aside time for this project and are you paid through the program? • Maybe the Board would want to change the rebate amount. REVIEW OF REPORT ON GREENHOUSE GAS EMISSIONS This item involves a review of the report on greenhouse gas emissions. Kathy Neus gave a presentation: • Large emphasis to reduce Greenhouse Gas (GHG) Emissions o Generation of power o Transmission and distribution of same power o District's own carbon footprint • Now required as part of California Environmental Quality Act (CEQA) for projects • District's purchase power GHG emissions o Verified by 3rd party since 2009 • Assembly Bill 32 Global Warming Solutions Act o Statewide program to reduce GHG emissions 0 1990 levels by 2020 • Senate Bill 97 o GHG Emissions evaluation now a CEQA requirement o Simplified CEQA analysis if there is an entity -wide reduction plan • District's GHG Inventory o Conducted by Sierra Business Council o Compared 2008 baseline emissions to 2012 emissions o Climate Registry protocol was used • Six gases inventoried o Carbon Dioxide (CO2) o Methane (CH4) o Nitrous Oxide (N20) o Sulfur hexafluoride (SF6) o Refrigerants ■ PFC's - Perfluorinated compounds ■ HFC's - Hydrofluorocarbons • All gases converted to carbon dioxide equivalent (CO2e) • Activities calculated o District headquarters and other facilities o Water Department operations o District fleet operations o Employee commute o Electric power delivery — 57% reduction in CO2e emissions o Reduction in coal generated power o Increased renewables in the District's RPS 9 Minutes: October 16, 2013 TDPUD Emissions 2008-2012 Comparison Category 2008 MT CO2e 2012 MT CO2e % Change 2008-2012 Water Dept. Operations 7,389 2,.611 -65% Electric Dept. Operations 5,528 1,784 -68% Delivered Electricity 88,302 38,601 -57% Bulk Transmission Losses 2,621 1,099 -58% Totals 103,840 43,555 -57% There was no public input. Board discussion: • What were the 1990 levels? • In 1990, the District was fighting to get out from under the Sierra Pacific Power Co contract • This is another great story for the PUD. CLOSED SESSION CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(D)(4), CONFERENCE WITH LEGAL COUNSEL ON DECIDING WHETHER TO INITIATE LITIGATION: ONE CASE 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 7:47 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jeff Bender, President Prepared by Barbara Cahill, Deputy District Clerk 10 Minutes: October 16, 2013