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Home My WebLink About12-Approval of Minutes for November 6 and 20, 2013Agenda Item # '12 MINUTES To: Board of Directors From: Barbara Cahill Date: December 04, 2013 Minutes for the Meeting Dates Approval of Minutes for November 6 and 20, 2013 REGULAR MEETING November 6, 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 pre- served 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 Kathy Neus, Neil Kaufman, Lauren Schaake-Hudson, Bob Mescher, Stephen Hollabaugh, Steven Poncelet, Michael Holley and Barbara Cahill CONSULTANTS PRESENT Steve Gross and Shawn Koorn 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. PUBLIC HEARING: DRAFT FY14 AND FY15 BUDGET PUBLIC HEARING The public hearing was opened at 6:01 PM. There were no public comments, or comments received by email or mail. The Public hearing was closed at 6:03 PM. 1 Minutes: November 6, 2013 ACTION ITEMS CONSIDERATION OF: A) ACCEPTING THE WATER RATE STUDY REPORT B) A DRAFT ORDINANCE SETTING THE WATER RATES C) SETTING A PUBLIC HEARING DATE REGARDING WATER RATES This item involves consideration of accepting the HDR Water Rate Study Report and the proposed water rates for FY14 and FY15 Director Hemig moved, and Director Ellis seconded, that the Board: • Accept the HDR Water Rate Study Report; • Accept the proposed draft of the water rate ordinance subject to the changes suggested by Counsel Gross to the sixth WHEREAS to read "the District received protests on the retail water rates from less than the majority of parcels within the District'; and • Set January 15, 2014 as the date of the public hearing regarding water rates ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF REVISING THE SOLAR REBATE SCHEDULE FOR THE SB-1 PROGRAM This item involves revising the SB=1 Solar Program Rebate amounts. Director Hemig recused himself as he has a new solar project to submit. Director Ellis moved, and Director Laliotis seconded, that the Board revise the rebate per watt amount to decrease by 79/o annually for the remaining years of the program beginning in 2014. ROLL CALL: Director Hemig, recused; all other Directors aye, by voice vote. SO MOVED BUDGET: FY14 AND FY15 A) FY14 AND FY15 BUDGET SUMMARY B) TEN-YEAR FINANCIAL MASTER PLAN PROJECTION 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 ■ Electric and Water operational and capital budgets 2 Minutes: November 6, 2013 o October 16 ■ 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 (tonight) ■ Draft FY14 & FY15 Budget and Financial Master Plan ■ Public Hearing — Draft budget ■ Water Rate Study — Shawn Koorn, HDR ■ 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 atwo-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 & FYI o Estimated water rate annual increase of 3% in FY14 & FY15 o $5 monthly water meter surcharge (7.5%) ends December 31st o Estimated labor rate increase of 2% in FY14 o Estimated labor rate increase of 3% in FYI o One IT employee added in FY14 o One Work Order employee restored in FYI • Overhead Allocations o Overhead allocation rates are used to allocate indirect expenses (overhead) to work orders, departments, etc. o Indirect expenses are impossible or impractical to assign to a specific job, function, work order, etc. o Overhead allocation rates are no indication of efficiency or inefficiency, but merely a factor used to allocate indirect expenses o Allocation method is the same as prior budgets except Inventory Overhead has been eliminated and combined with Administration Overhead o Existing and proposed overhead allocation rates Overhead Type FY13 FY14 FYI Labor 99% 97% 99% Transportation $ 12.09 $ 11.65 $ 12.20 Inventory 21 % N/A N/A Administration 1 3% 5% 5% Construction 118% 16%1 21 Note: Beginning FY14, inventory overhead w consolidated with administration overhead II be 3 Minutes: November 6, 2013 • Comparison of FY14 Budget to FY13 Budget (in thousands) FY 13 Budget Electric Water Total Revenue $ 23,240 $10,910 $ 34,150 Expenses 19,990 73710 27,700 Income $ 33250 $ 3,200 $ 6,450 Plus: From Funds 11150 31300 4,450 Less: Debt Service 890 3,320 43210 Capital Projects 21890 11720 41610 To Reserves 620 13460 2,080 Surplus (Deficit) - - - FY 14 Budget -DRAFT Electric Water Total $ 23,330 $10,800 $ 34,130 20,390 7,590 27,980 $ 21940 $ 31210 $ 6,150 Variance Electric Water Total 0% -1 % 0% 2% -2% 1 % 2,380 2,850 5,230 107% -14% 18% 860 3,320 4,180 31540 21590 61130 920 150 13070 Comparison of FY15 Budget to FY14 Budget (in thousands) Revenue Expenses Income Plus: From Funds FY 14 Budget -DRAFT Electric Water Total $ 23,330 $10,800 4t34,130 20,390 7,590 27,980 $ 2,940 $ 3,210 $ 6,150 2,380 2,850 5,230 Less: Debt Service 860 3,320 4,180 Capital Projects 33540 21590 63130 To Reserves 920 150 13070 Surplus (Deficit) - - - 22% 51% 33% 48% =90% -49% FY 15 Budget -DRAFT %Variance Electric Water Total Electric Water Total $23,560 $11,213 $34,773 20,910 7,850 28,760 $ 21650 $ 3,363 $ 63013 2,000 2,770 4,770 -3% -9% 890 3,330 4,220 3% 0% 1 2,850 2,653 5,503 -19% 2% -10% 910 150 11060 -I % 0% -1 % 4 Minutes: November 6, 2013 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- $s,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Electric Projected Cash & Reserve Balance (inthousands) yap ac i rase enas rrc� FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Water Projected Cash &Reserve Balance (inthousands) Cash &Reserve Balances FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 • This public hearing and budget workshop are part of the overall budget process that will affect the District's spending for the next two fiscal years • The Finance Master Plan validates that the proposed FYI and FYI Budget is consistent with the District's long-term goals There was no public comment. 5 Minutes: November 6, 2013 Board Discussion: • Budget is fair and balanced • Staff has done an excellent job putting moderate rate increase to make sure costs, provides a fair and equitable rate. • Budget looks good and balances. to a budget that takes care of a WE are keeping up with expenses and • The small increase for water and lack of increase in electric helps out. • There are no drastic changes, even keel, works well. • The budget stays where the Board likes to see it. • Good work to staff for a fair, balanced and equitable budget. ROUTINE BUSINESS TREASURER'S REPORT Approval of the fund balances as of September 30, 2013. Director Hemig moved, and Director Laliotis seconded, that the Board approve the treasurer's report for the month ended September 30, 2013. ROLL CALL: All Directors, aye. SO MOVED. Approval of disbursements for October 2013 Director Aguera moved, and Director Ellis seconded, that the Board approve the October 2013 disbursements report. ROLL CALL: All Directors, aye. SO MOVED. APPROVAL OF MINUTES FOR OCTOBER 2 AND 16, 2013 Director Laliotis moved, and Director Ellis seconded, that the Board approve the minutes of October 2 and 16, 2012. ROLL CALL: All Directors, aye. SO MOVED. 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: November 6, 2013 REGULAR MEETING November 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 Vice President Aguera, ROLL CALL: Directors Joe Aguera, Bob Ellis, Ron Hemig, and Tony Laliotis were present. Director Jeff Bender arrived at 6:06 PM. PLEDGE OF ALLEGIANCE Director Laliotis led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT Joe Horvath, Jim Wilson, Bob Mescher, Steven Poncelet, Michael Holley and Barbara Cahill CONSULTANTS PRESENT Steve Gross OTHERS PRESENT There was no public present. CHANGES TO THE AGENDA General Manager Holley stated there were no changes to the agenda. PUBLIC INPUT There was no public input. Director Hemig wished everyone a Happy Thanksgiving. CONSENT CALENDAR Vice President Aguera asked that Agenda Item Number 8, All -Electric Vehicle Lease, be removed from the Consent Calendar and placed with Action Items. CONSIDERATION OF THE PURCHASE OF AN OPERATING SYSTEM UPGRADE TO THE ELECTRIC SCADA SYSTEM The item involves the purchase of Windows SCADA software and conversion services necessary to upgrade the existing Electric SCADA system. Director Laliotis moved, and Director Hemig seconded, that the Board approve the consent calendar. ROLL CALL: All Directors aye, by voice vote. SO MOVED 1 Minutes: November 20, 2013 ACTION ITEMS CONSIDERATION OF AWARDING A LEASE FOR A 2013 ALL -ELECTRIC VEHICLE This item concerns awarding a lease for a 2013 All -Electric Vehicle. Director Hemig moved, and Director Ellis seconded, that the Board authorize the General Manager to enter into a 36-month lease of a RAV 4 EV with Magnussen's Auburn Toyota for the amount of $458.80 per month plus applicable tax. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF APPROVING ACTION ITEMS RELATED TO THE FY14 AND FY15 BUDGET: A) APPROVE A RESOLUTION ADOPTING THE FY14 AND FY15 BUDGET AND OVER- HEAD ALLOCATION RATES B) ADOPT THE FY14 AND FY15 PURCHASE POWER AND RESOURCE PLAN C) APPROVE THE RELATED TRANSFERS FROM RESERVE FUNDS This item involves approving actions related to the FY14 and FY15 Budget, overhead allocation rates, Purchase Power and Resource Plan, and related transfers from re- serve funds. Director Hemig moved, and Director Aguera seconded, that the Board: • Approve the Resolution 2013-24 to adopt the FY14 and FY15 Budget and overhead allocation; • Adopt the FY14 and FY15 Purchase Power Plan; and • Approve the related budgeted transfers. ROLL CALL: All Directors aye, by voice vote. SO MOVED ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 6:20 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jeff Bender, President Prepared by Barbara Cahill, Deputy District Clerk 2 Minutes: November 20, 2013