HomeMy WebLinkAbout17 Minutes for Meeting Agenda Item # 17
TRUCKEE DONNER
PLiblic Utility District
MINUTES
To: Board of Directors
From: Barbara Cahill
Date: May 20, 2009
Minutes for the Meeting Dates
April 15 and May 6, 2009
F€
REGULAR MEETING
3n;
April 15, 2009
In accordance with District Code Section 2.08.010, the TDPUD minutes are action only
minutes. All Board meetings are recorded on audio tapes which are preserved perpe-
tually 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 Ron Hemig.
ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig, John Hillstrom and Pat Sutton
were present.
EMPLOYEES PRESENT: Steven Hollabaugh, Ed Taylor, Mary Chapman, Rosana Matlock,
Neil Kaufman, Kathy Neus, Michael Holley and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross
OTHERS PRESENT: Pat Davison, Juanita Schneider and Paula Sutton
CHANGES TO THE AGENDA
General Manager Holley asked to pull agenda item No. 7, Adopt Resolution for revisions to
Title 8, District Property.
PUBLIC INPUT
Juanita Schneider asked the Board to please speak into the microphones so the audience
can hear what they are saying, plus for the TV audience.
Pat Davison of the Contractors Association of Truckee Tahoe wanted to inform the Board
about a "Build It Green" certification class being held at Village at Northstar on April 24 and
25, 2009. A staff member of Truckee Donner PUD has been asked to give a short talk about
conservation programs and rebates.
DIRECTOR UPDATE
There was no director input.
1 Minutes: April 15 2009
ACTION
CONSIDERATION OF THE AWARD OF A CONTRACT TO PERFORM THE WATER RATE
STUDY This item involves a hiring a consultant to help develop a new volume-based
water rate structure.
Director Aguera moved, and Director Bender seconded, that the Board award a contract to
perform a Water Rate Study to HDR Inc in an amount not to exceed $48,870; and authorize
the transfer of $48,870 from the Reserve for Future Meters Fund to the Water Department
General fund to cover the cost of the contract.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
ADOPT A RESOLUTION FOR REVISIONS TO TITLE 8, DISTRICT PROPERTY This item
involves the adoption of a resolution to adopt revisions to District Code, Title 8,
District Property.
This agenda item will be moved to the May 6, 2009 Board meeting.
CONSIDERATION OF SCHEDULING PUBLIC HEARINGS RELATED TO THE ADOPTION
OF WATER AND ELECTRIC STANDBY CHARGES This item involves a discussion of
the upcoming authorization request to continue assessing Water and Electric Standby
charges.
Director Hillstrom moved, and Director Aguera seconded, that the Board set a date for a
Public Hearing on June 17, 2009 at 6:00 PM for the purpose of receiving input on the
adoption of Water and Electric Standby Charges.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
WORKSHOPS
SB1 SOLAR PROGRAM UPDATE This item involves a review of the SB1 Solar
Program.
Kathy Neus gave a presentation:
• Background / History
o SB-1 passed August 21, 2006 and was adopted by the District November 19, 2007
o SB-1 Commitments:
■ $1,774,000 total
■ $177, 400 average per year for ten years
■ kW goal: 1,610 Kilowatts
■ Incentive: $5.00 for 2008; $4.50 for 2009; $4.05 for 2010
• New Information
0 2008: 10 PV Systems, 35.3 kilowatts, $141,000 rebated
0 2009: 2 PV Systems, 8.3 kilowatts, $28,500 rebated, 10 applications pending, TSD
PV System
0 2010: 10 applications pending
2 Minutes: April 15 2009
• NCPA Members- Solar PV System Summary for 2008 & 2009
08 Installs 09 Installs Electric customers
o Turlock Irrigation District 38 14 97,435
o City of Roseville 289 -- 51,361
o Silicon Valley Power 15 -- 50,426
o City of Redding 19 -- 42,126
o City of Alameda 23 3 33,869
o City of Palo Alto 84 5 28,624
o City of Lodi 16 2 28,500
o City of Lompoc 5 2 15,000
o Truckee Donner PUD 10 2 13,155
o Plumas Sierra Rural Electric 5 1 7,500
o City of Ukiah 3 1 7,500
o City of Healdsburg 4 9 5,786
o City of Gridley 1 0 2,600
• Fiscal Impact
o Solar Program Customer Charge
■ Residential - $0.60 per month
■ Small Commercial — $5.00 per month
■ Medium Commercial — $10.00 per month
• Large Commercial - $15.00 per month
There was no public input.
Board discussion:
• Didn't Roseville build PV systems into a lot of new homes
• Are there any 2011 applications
• What will the rebate be in 2011
• Can dollars move forward if they are not used in one year
• Have installed systems been operating well
• What technology are people using
• When will TSD be on line and can the Board go see the operation
• What about the Federal subsidy
DISCUSSION OF THE ECONOMIC IMPACT OF RECESSION ON DISTRICT ELECTRIC
REVENUES This item involves follow-up to an article in the Sacramento Bee.
Steve Hollabaugh gave a presentation:
• Background / History
o SMUD announced a general rate increase and stated that the economic recession
had greatly impacted their revenues due to decreasing commercial and industrial
load. Other contributing factors cited were:
■ Depleting reserves
■ Vying for more renewable energy for which costs are rising
■ Needing to upgrade an aging infrastructure
■ Increasing costs for natural gas
o These factors are not common to Truckee Donner PUD's situation
3 Minutes: April 15 2009
• New Information
o The District receives 45% of its revenue from commercial customers and 55% from
residential customers
■ Commercial Customer counts and KWH Sales
2008: count 1,464; total KWH 72,002,721
2007: count 1,436; total KWH 72,025,566
The number of customers has not declined over the past two years and the
KWH sales are relatively the same.
■ Residential Customer counts and KWH Sales
2008: count 11,550; total KWH 75,000,000
2007: count 11,402; total KWH 74,009,589
The main variables for residential sales are weather factors and usage by
second home owners.
■ The five largest electric customers by load
Water Utility 10,536,252 KWH
Waste Water Plant 7,898,715 KWH
Hospital 5,482,731 KWH
Education 3,206,405 KWH
Private Sector 2,146,500 KWH
The five largest customers are not at a high risk to leave the District.
The District has a diversified electric purchase power portfolio that balances
risk.
There was no public input.
Board discussion:
• PUD requires new development to pay their own way through a development agree-
ment- does SMUD require this same type of financial arrangement
• Water conservation and meters may reduce usage by 20%- with the water utility being
the biggest electric customer, the load could change- seems there are implications
• For the water utility, what percent of KWH is for pumping
• What about the change in amount of electric used by the waste water plant once the
solar is installed
DISCUSSION ABOUT PURCHASE AND CONTRACTING PROCEDURES This item
involves a discussion about Title 3.08, Purchasing, and procedures the District follows
Mary Chapman gave a presentation:
• When purchasing, the District must follow:
o California Public Contract Code
o California Government Code
o Public Utilities Code
o District Code —Title 3.08 Purchasing
• The District also follows internal procedures and guidelines to:
o Meet Board policy
o Standardize purchasing procedures
o Provide for levels of purchasing authority
4 Minutes: April 15 2009
• Why are we required to follow a public process?
o To prevent corruption and cronyism in public agency purchasing
o To assure that the public receives the best pricing on purchases of commodities,
equipment and public works projects
o To verify that only "responsive" "responsible" contractors perform public works
projects
• How do we meet the requirements of the public process?
o Solicit requests for bids (RFB) when purchasing commodities, equipment and
public works projects
o Process results in the lowest price for a given product or project
o Solicit requests for proposal (RFP) when procuring services
o Process looks for the most qualified proposal and still considers cost
o Obtain telephone quotes for items of less than $15,000
o Consider price, terms and delivery in evaluating all purchases, large or small
• The District involves the public in the Request for Bid or Request for Proposal by:
o Advertise in a local newspaper of general circulation
o Mail CDs with bid documents to vendor distribution lists maintained by the District
o Post the RFB or RFP on the District website
o Schedule a date and time for the opening of the RFB or RFP
o Open the bids in public
o Award the bids in public
• There are three levels of purchasing authority in the District Code:
o Greater than $15,000 must be approved by the Board
o Greater than $10,000 and less than $15,000 must be approved by the GM
o Purchases less than $10,000 must be approved by the Department Heads
• Categories of purchases per District Code
o Commodities and equipment
o Service contracts (public works contracts)
o Agreements for special services
o Agreements for consulting services
o Joint purchasing with the State of California or other public agency
• Other considerations in purchasing
o Change orders
o Procurement authorization during an emergency
There was no public input.
Board discussion:
• Good policy coverage
• Change orders should be acted on before the work is done
• Change orders amount to 5% of the project
• Concern in the policy as to how much independence the General Manger has from the
Board when over $15,000
• Things should come to the Board before they are purchased
• The President of the Board should sign contracts according to Public Utility Code
5 Minutes: April 15 2009
REVIEW OF 2008 CONSUMER CONFIDENCE REPORTS (WATER QUALITY REPORT)
This item involves discussion of the required notice to water customers annually
describing the District's water quality.
Ed Taylor gave a presentation:
• The District is required to prepare an annual Consumer Confidence Report for each
water system (Main & Hirschdale) in accordance with Ca. Health and Safety Code
• The District is required to mail a copy of the report to each customer by July 1
• 2008 reports have been prepared & reviewed by State Department of Public Health
• The District's water supply meets all of the Maximum Contaminate Levels (MCL)
imposed by the State and Federal governments with the onetime exception of the
arsenic level at the Glenshire Dr. Well
o The MCL for arsenic is 10ppb
o The Glenshire Dr. Well arsenic level has met the MCL since 2003
o The December 4, 2008 test was 13ppb
o The water quality rules require four quarterly retests
o The first quarterly retest was 9ppb
There was no public comment.
Board discussion
• When did the Federal government pass the permissible arsenic standard and when
did the State of California adopt it
• Why is the Hirschdale report different
DISCUSSION OF A BACKFLOW PROGRAM This item involves the discussion of
additional inspections and service for the Cross-Connection Program.
Ed Taylor gave a presentation:
• Background / History
o District has basic Cross-Connection Program
o Goal: To protect public health
o Current program:
■ Notification and tracking of annual device testing
• Review new and remodeled commercial construction
■ Inspection of potential high hazard businesses that require backflow protection
o Current program utilizes 50% of a full time employee
■ This includes supervisory and support time
■ Paid for entirely from rates
• New Information
o Staff recommends that the Cross-Connection Program be expanded to provide
additional protection to our customers which will include:
■ Annual inspection of high hazard commercial accounts
• Two-year inspection of all other commercial accounts
■ Program of verification testing of devices to validate proper annual testing
■ Program to coordinate with the other agencies to identify non-commercial high
hazard accounts
6 Minutes: April 15 2009
o Expanded level of effort may involve an estimated additional 50% of a full time
employee
o Program Benefits — Higher level of protection
■ Annual inspection of high hazard commercial accounts: any changes in hazard
and any modification to the protection, which will identify and mitigate any new
potential hazards
■ Two-year inspection of all other commercial accounts: any changes in hazard
and any need for protection, which will identify and mitigate any new potential
hazards
■ Program of verification testing of devices to validate proper annual testing and
repair: validate the testers are using proper testing technique and devices are
being tested
■ Program to coordinate with the other agencies to identify non-commercial high
hazard customers and any need for protection, for example sewer lift pumps
• Next Steps:
o Review District code for possible revisions
o Conduct a public outreach program
o Start annual inspections of high hazards-December 2009
o Start two-year inspections of all other commercial accounts - March 2010
o Start verification program - August 2010
o Start coordination program with other agencies - May 2009
There was no public input.
Board discussion:
• Does the District run the Backflow Program now with fees from customers who need
backflow devices
• Should customers pay for this as a customer benefit
• Is the District planning on a fee for those who need a Backflow device
• Some Backflow users have a great potential to contaminate water
• Does the District have a lot of high hazard Backflow devices, have they failed and
where are they
• There are potential problems with connections to fire suppression systems
• District needs to start testing and inspecting
• PUD should talk with some of the inspectors
• Inspectors are necessary
• Speak with the Town of Truckee about a residential program
• How often should devices be inspected
• Does the customer pay for all the Backflow devices and inspections
CONSIDERATION OF MINUTES FOR MARCH 18 AND APRIL 1, 2009
Director Hillstrom moved, and Director Aguera seconded, that the Board approve the minutes
of March 18 and April 1, 2009. ROLL CALL: All Directors, aye. SO MOVED.
7 Minutes: April 15 2009
TREASURER'S REPORT: INTERIM MARCH 2O09
Approval of the report: Director Sutton moved, and Director Bender seconded, that the
Board approve the interim treasurer's report for the month ended March 31, 2009.
ROLL CALL: All Directors, aye. SO MOVED.
Approval of disbursements: Director Aguera moved, and Director Hillstrom seconded, that
the Board approve the March 2009 disbursements report.
ROLL CALL: Director Sutton, no (feels the Board should approve the checks before they are
mailed); All other Directors, aye. SO MOVED.
CLOSED SESSION
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9,
SUBDIVISION (B), POTENTIAL 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 8:04 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
J. Ron Hemig, President
Prepared by
Barbara Cahill, Deputy District Clerk
8 Minutes: April 15 2009
E,e
s}: a
=A REGULAR MEETING
r May 6, 2009
In accordance with District Code Section 2.08.010, the TDPUD minutes are action only
minutes. All Board meetings are recorded on audio tapes which are preserved perpe-
tually 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 6:02 PM in the TDPUD Board room by President Hemig.
ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig, John Hillstrom and Pat Sutton
were present.
EMPLOYEES PRESENT: Steven Hollabaugh, Jim Wilson, Mary Chapman, Nancy Waters,
Bob Mescher, Neil Kaufman, Kathy Neus, Steven Poncelet, Michael Holley and Barbara
Cahill
CONSULTANTS PRESENT: Steve Gross, Tom Unke (Virchow-Krause), Keith Grand (Marsh
Ins) and Shawn Koorn (HDR)
OTHERS PRESENT: Juanita Schneider and Dan Warren
CHANGES TO THE AGENDA
There were no changes to the agenda.
PUBLIC INPUT
There was no public input.
DIRECTOR UPDATE
President Hemig stated that Dan Colley passed away recently and the Board would like to
pay its respects. Mr. Cooley was a Director on the TDPUD Board from November 1983 to
November 1987. During his term, accomplishments were:
• Completed Martis Valley Substation
• Filed application to FERC to construct and operate hydroelectric generating facilities at
Boca/Prosser Dams- Boca Hydroelectric Project
• Annexed Hirschdale and began the water system rehabilitation project
• Completed new Headquarter Complex
President Hemig wanted to let the Board know that Nevada County LAFCo is requesting
nominations for the next four-year term for the Alternate (non-voting) District member.
Director Bender said he would be interested in running. This item will be placed on the May
20 agenda as an action item.
1 Minutes: May 6, 2009
Director Bender attended a conference in Washington D.C., representing Northern California
Power Association as an Alternate Commissioner. He said the trip was well worth it as great
strides were made meeting with our local senators and congress people. One topic discussed
was stimulus funding.
CONSENT CALENDAR
Director Sutton asked Agenda Items 6 and 7 be removed from the consent calendar.
President Hemig moved all three Consent Calendar items to Action Items.
ACTION
REVIEW AND AMEND DISTRICT HARASSMENT PREVENTION POLICY This item
involves an amendment to the District Harassment Prevention Policy.
Director Aguera moved, and Director Hillstrom seconded, that the Board authorize the Board
President to sign the resolution revising Section 4.2.2, Harassment, Discrimination and Retal-
iation, of Title 4, Personnel. ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF THE AWARD OF A CONTRACT TO HUMITECH FOR THE KEEP
YOUR COOL PROGRAM This item involves the 2009 Contract for Keep Your Cool
Program.
Director Hillstrom moved, and Director Bender seconded, that the Board award a contract to
Humitech for the Keep Your Cool Program for an amount not to exceed $30,000.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF THE AWARD OF A CONTRACT TO PURCHASE MOTOR
CONTROL CENTER This item involves the purchase of a Motor Control Center for the
Fibreboard Well.
Director Bender moved, and Director Aguera seconded, that the Board award the contract for
electrical equipment for the Fibreboard Well in the amount of $22,790.00 (plus tax) to Rexel
Electric Supply; and authorize the transfer of $22,790 (plus tax) from Water Facilities fees to
the Water Department Operations fund.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
APPROVE AGREEMENT WITH UAMPS REGARDING REC'S This item involves the
purchase of Renewable Energy Credits from Utah Associated Municipal Power
Systems.
Director Hillstrom moved, and Director Bender seconded, that the Board approve the UAMPS
Renewable Energy Credit Sales Agreement for the purchase of 36,000 REC's for the calen-
dar year 2009, not to exceed $189,000. ROLL CALL: All Directors aye, by voice vote. SO
MOVED
2 Minutes: May 6, 2009
APPROVE AN AGREEMENT FOR ASSIGNMENT AND ASSUMPTION OF 200 KW
TRANSFER OF PLEASANT VALLEY WIND GENERATION This item involves the 200
kw transfer of Pleasant Valley Wind generation between Hildale City Utah and Truckee
Donner PUD.
Director Bender moved, and Director Hillstrom seconded, that the Board authorize the Board
President to sign the Assignment and Assumption Agreement between Hildale City, Truckee
Donner PUD and UAMPS for approximately 200kw of wind generation at Pleasant Valley.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF THE AWARD OF A CONTRACT FOR PROPERTY AND LIABILITY
INSURANCE This item concerns the annual renewal of the District's property and
liability insurance.
Director Sutton moved, and Director Aguera seconded, that the Board approve the insurance
renewal as presented; reject the TRIA (terrorism) coverage; and approve Marsh's Client
Services Agreement for the 2009-2010 policy year subject to District counsel's review.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
REVIEW AND ACCEPT THE DRAFT AUDIT REPORTS FOR 2008 This item relates to a
presentation by the District's auditors regarding their findings in conducting the audit
for the District's 2008 financial statements.
Director Bender moved, and Director Hillstrom seconded, that the Board accept the draft
Audited Financial Reports for 2007 and 2008.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
ADOPT A RESOLUTION FOR REVISIONS TO TITLE 8, DISTRICT PROPERTY This item
involves the adoption of a resolution for revisions to District Code, Title 8, District
Property.
Director Hillstrom moved, and Director Aguera seconded, that the Board approve the
resolution "Adopting an Amendment to the District Code, title 8, District Property".
ROLL CALL: All Directors aye, by voice vote. SO MOVED
WORKSHOPS
DISCUSSION OF WATER RATE STRUCTURE ALTERNATIVES This workshop begins
the discussions about water rate structure alternatives.
Shawn Koorn of HDR, gave a presentation on a review of conceptual rate structures:
• Rate Review Process
o Determine goals and objectives
o Compare alternatives to the goals and objectives
o Narrow down alternatives (options) to those that best align with goals & objectives
o "Test drive" the selected options
3 Minutes: May 6, 2009
o Make a final selection based upon the above process
• Typical objectives when setting rates
o Revenue stability and sufficiency
o Continuity in rate philosophy
o Fairness and equity
o Cost-based
o Ability to pay
o Conservation—efficient usage
o Simplicity
o Legal and regulatory constraints
o Legally defendable
o Financial risk
• Industry trends
o State mandate for volume based billing
o AB 2882 — allocation based conservation pricing
o Movement to conservation based rates: Ca Urban Water Conservation Council
(CUWCC) and provide one definition of conservation rates
• Purpose of reviewing the District's rate design goals and objectives
o Provide a perspective of how current water rates were developed
o Understand what issues other water utilities consider
o Recognize the problem of competing goals and objectives
o What should the District carry forward in any new rate structures?
• Development of the conceptual water rate
o Objective is to view rate structures from a "philosophy" perspective — not numbers
o Assume service charge, usage charge, and pumping zone charge will be included
in any conceptual rate structure
o Focus on the relationship between the service charge and usage charge portion of
the structure
o Identify concepts to move forward that meet the District's goals and objectives
o Ultimately choose 2-3 concepts to road test
• District's present rate structure
o Residential fixed monthly rate $48.57 (plus zone charge)
o Small Residential fixed monthly rate $34.57 (plus zone charge)
o Commercial- 3/4" meter size $42.34 plus usage charge beginning with 6,000 gal.
• Service charges vs. usage charges
o Provides revenue stability
o Utilities generally incur more fixed than variable expenses
o Can include some level of consumption in service charge
o Financial risk
• Option 1- Uniform Rate Structure
o Block 1 All Use Pricing of block $2.00/1,000 gal.
o Provides single cost of water
o Promotes conservation compared to current rate structure
o Will work for all customer classes of service
o Rate may vary by customer class
• Option 2- Inclining Rate Structure
o Block 1 Average indoor use Pricing of block $2.00/1,000 gal.
4 Minutes: May 6, 2009
Block 2 Use over block 1 Pricing of block $4.00/1,000 gal.
o Considered a conservation-based rate
o Block size can be based on average winter use
o For commercial; may penalize large users who may or may not be inefficient users
• Option 3- inclining Rate Structure
o Variation of Option 2
o Block 1 Average indoor (Winter) use Pricing of block $2.00/1,000 gal.
Block 2 Average outdoor(Summer) use Pricing of block $4.00/1,000 gal.
Block 3 All usage over block 2 Pricing of block $6.00/1,000 gal.
o Block sizes based upon District averages
o Geared towards single-family residential; probably not appropriate for commercial
0 3rd block is intended to "penalize" inefficient use
• Option 4- Seasonal Rate Structure with uniform rate
o Winter Period Block 1 All consumption Pricing of block $1.50/1,000 gal.
o Summer Period Block 2 All consumption Pricing of block $2.25/1,000 gal.
o Variation of Option 1
o Need to define winter and summer periods
o Communicates the value of water (capacity) varies by time period
• Option 5- Season Rate Structure with fixed thresholds and a uniform rate
o Winter Period Block 1 All consumption Pricing of block $1.50/1,000 gal.
o Summer Period Block 1 Ave Winter Use Pricing of block $1.50/1,000 gal.
o Summer Period Block 2 Ave Summer Use Pricing of block $2.00/1,000 gal.
o Summer Period Block 3 All Usage over block 2 Pricing of block $4.00/1,000 gal.
o Combination of the previous structures
o Focuses on the summer period
o Based upon District average
o Outdoor use is more discretionary and greater price response
o Probably not appropriate for commercial
• Other usage rate design parameters
o Individual winter water use
o Number of occupants
o Lot size
o Irrigable area
o Geographic location
o Customer type
• Impacts to customer classes of service
o Difficult to design a single rate structure that "fairly" charges all customers
o Criteria for establishing customer classes of service — facility requirements and
usage patterns
o Current Classes of Service: Residential, Small Residential and Commercial
• Rate structure review final thoughts
o Transition to a metered rate
o Meeting the District's ultimate rate structure goals
o Customer impacts
o Usage impacts
o Rate structures can vary by class of service
o How to treat condos/townhomes and/or mixed use
5 Minutes: May 6, 2009
o Different types of commercial uses
o Metered irrigation
o More use isn't necessarily inefficient use
o Inefficient vs. wasteful
• Next steps
o Rate study kick-off meeting with staff May 7
o Develop rate study analysis: revenue requirement, cost of service, rate design
o Input from Board will shape the rate design alternatives
o Road test some alternative rate structures at the June 3 Board meeting
Juanita Schneider asked if there are pilot test meters on the west end of Donner Lake.
Donner Lake Homeowners Association will be holding its annual meeting this month and this
subject may come up.
Board discussion:
• How does the Board give direction for the June 3 test drive of rate options
• What time is the staff meeting with HDR on May 7
• Has HDR dealt with many districts- have some districts had water problems so there is
a reason to set rates
• Our water problems are unique to us- water goes to Nevada
• When a district goes from flat to block pricing, is it reasonable to assume that 1/3 of
customers will have higher bills, 1/3 will have parity and 1/3 will be less
• Get rid of declining block rate- get rid of free water- it is like commercial accounts get
6,000 gallons free water
• Goal setting- be cost based, simple, not big enough to be complicated, not give rate
payers a heart attack
• Higher elevation pay more electric to pump —apply base charge and use
• Is there sufficient water
• So HDR will come back with equations for water rates
• Will there be three meetings for input: one in June and 2 in July
• Need to test drive some rates
• Truckee Tahoe Sanitary District- how do they figure out the use of 210 gallon/day
times household members to equal 6,000 gallons per month
• Like the seasonality- growing season is only about 4 months
• What about low income rates
• Pipe replacement — get away from borrowing- so pay as you go- HDR needs to be
aware of the District policy in order to develop rates
• There needs to be an ability to pay- keep rates simple
• Be able to pay for future needs- but keep rates stable
• If use less water and conserve, may have to charge more to cover our costs
• Come up with 90/10- see what use and do not pay huge amount
• Big surcharge and small rate for volume component and small seasonality component
• Will HDR give us a multiyear plan
• Should we segment customer types
• Maybe all that is needed for commercial charge is meter size
• Is there a reason to consider a higher fixed rate for second homeowners
6 Minutes: May 6, 2009
• See the scenarios in the test drive on June 3- simple stuff: no tiers, 2 tiers, simple with
tier change
• How can we make outreach work- do an extensive outreach
• Put a news release in the Sierra Sun
TDPUD CUSTOMER ASSISTANCE PROGRAMS This item involves current and
proposed programs for TDPUD customer assistance, including the Low Income -
Energy Saving Program (LI-ESP).
Mary Chapman and Steven Poncelet gave a presentation:
• Background / History
o The District has been exploring ways to help our customers through the economic
crisis
— This is particularly true of our low-income customers
o Staff is working on existing and new customer assistance programs
— Equal Payment Plan (existing)
— Bill Amortization Program has been extended from 12-months to 24-months
— Pay-As-You-Go Metering (pending) is a web based or card swipe system
available to all electric customers; advantages: eliminates customer deposits,
helps customers reduce their energy usage, eliminates late fees & associated
charges
— Low-Income Energy Savings Program (LI-ESP)
• Low-Income Energy Savings Program (LI-ESP)
o Support's the District's low-income customers
o Available to full-time residents who qualify
o Provides a one-time voucher equal to largest bill in last 12-months (up to $200)
o Customer must participate in a free residential energy survey and install free
energy efficiency measures
o Includes information on other TDPUD programs along with additional community
resources
o First-year goal of 200 participants in LI-ESP
o Low-income customer outreach and qualification to be contracted to a local non-
profit (Family Resource Center)
— Leverages existing relationships with low-income community
— Provides non-threatening face-to-face contact
— Minimizes administrative burden on District staff
— District will promote program through existing activities
o Low-income qualification the same as other programs
— Southwest Gas, NV Energy, PG&E
— Based on California Public Utilities Commission (CPUC) guidelines
— Loss of 25% of household income will also qualify
o LI-ESP requires an energy survey of customers residence
— 'Visual' survey of residence paid for by the District
— Energy survey is designed to target `low hanging fruit' with focus on the most
cost-effective measures
— Energy survey will identify and recommend energy efficiency upgrades and
additional areas for investigation
7 Minutes: May 6, 2009
— Surveyor will provide free energy saving measures at the end of survey
• Fiscal Impact
o LI-ESP vouchers will be funded through the Conservation Dept. low-income funds
o LI-ESP free energy survey and measures will be funded through existing Conser-
vation Dept. programs
There was no public input.
Board discussion:
• Take out "low income" and just name program Energy Savings Program (ESP)- there
is no reason to brand people
• Program sounds great
• People will know if they qualify by the three requirements
• Program could be used across the board and not just for low income
• The $200 voucher seems like a reward for a large monthly bill
• People who have large bills may be using too much energy and could use a residential
energy survey
ROUTINE BUSINESS
TREASURER'S REPORT: FINAL DECEMBER 2008
Approval of the report: Director Sutton moved, and Director Hillstrom seconded, that the
Board approve the final treasurer's report for the month ended December 31, 2008.
ROLL CALL: Director Sutton, no; All other Directors, aye. SO MOVED
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 9:21 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
J. Ron Hemig, President
Prepared by
Barbara Cahill, Deputy District Clerk
8 Minutes: May 6, 2009