HomeMy WebLinkAbout#15 Minutes Agenda Item # 15
TRUCKEE DONNER
Public Utility District
MINUTES
To: Board of Directors
From: Barbara Cahill
Date: October 21, 2009
Minutes for the Meeting Dates
September 10 and 16, and October 7, 2009
E
n '
REGULAR MEETING
September 10, 2009
In accordance with District Code Section 2.08.010, the TDPUD minutes are action only
minutes. All Board meetinas are recorded on audio tapes which are preserved perpetually
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 2:02 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: Ed Taylor, Neil Kaufman, Joe Horvath, Steven Poncelet, Stephen
Hollabaugh, Michael Holley and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross
OTHERS PRESENT: Juanita Schneider and Scott Freidus
CHANGES TO THE AGENDA
There were no changes to the agenda.
PUBLIC INPUT
There was no public input.
DIRECTOR UPDATE
There were no director updates.
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.
ACTION ITEMS
CONSIDERATION OF A CHANGE ORDER TO PIPELINE REPLACEMENT - 2009, CONTRACT
C This item involves a Change Order for Cruz Construction.
Director Hillstrom moved, and Director Aguera seconded, that the Board authorize Change
Order No. 3 to the District Pipeline Replacement — 2009 — Contract C in a deductive
amount of$226,280 subject to the terms and condition of the Change Order.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
1 Minutes: Sept 10, 2009
CONSIDERATION OF THE PURCHASE OF METER BOXES AND WATER MAIN
APPURTENANCES This item involves the purchase of meter boxes to complete the
Pipeline Replacement- 2009, Contract C.
Director Bender moved, and Director Aguera seconded, that the Board authorize the
purchase of piping materials as needed to complete the work on Chamonix Road from
Western Nevada Supply in an amount not to exceed $23,000; and authorize the transfer of
funds from the 2006 COP to the Water Department General Fund to cover the cost of the
materials. ROLL CALL: All Directors aye, by voice vote. SO MOVED
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 2:50 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
J. Ron Hemig, President
Prepared by
Barbara Cahill, Deputy District Clerk
2 Minutes: Sept 10, 2009
REGULAR MEETING
September 16, 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 Hemig.
ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig, John Hillstrom and Pat Sutton
were present.
EMPLOYEES PRESENT: Kathy Neus, Mary Chapman, Stephen Hollabaugh, Steven
Poncelet, Jim Wilson and Barbara Cahill
CONSULTANTS PRESENT: Steve Gross and Shawn Koorn
OTHERS PRESENT: Juanita Schneider
CHANGES TO THE AGENDA
Assistant General Manager Hollabaugh asked to remove both Closed Session items.
PUBLIC INPUT
There was no public input.
DIRECTOR UPDATE
Directors Hillstrom, Bender and Hemig stated they would be attending the annual NCPA
meeting next week in Berkeley.
ACTION ITEMS
CONSIDERATION OF THE WATER RATE STUDY REPORT AND PROPOSED WATER
RATES a. Adoption of the Final Water Rate Study Report. b. Consideration of the
proposed water rates.
Director Bender moved, and Director Hillstrom seconded, that the Board adopt the Water
Rate Study Report; and approve the proposed draft ordinance setting water rates for fiscal
years 2010 and 2011. ROLL CALL: All Directors aye, by voice vote. SO MOVED
SET A PUBLIC HEARING DATE REGARDING ESTABLISHMENT OF NEW WATER
RATES This item involves setting a public hearing date and following the Proposi-
tion 218 process.
Director Hillstrom moved, and Director Bender seconded, that the Board schedule a public
hearing for November 18, 2009 for the purpose of receiving input regarding the proposed
water rates. ROLL CALL: All Directors aye, by voice vote. SO MOVED
1 Minutes: Sept. 16, 2009
CONSIDERATION OF AN AWARD OF A CONTRACT FOR THE CONSTRUCTION OF
WATER PIPELINE AND ELECTRICAL CONDUIT ON SKISLOPE WAY This item
involves award of a contract for the completion of work on Skislope Way.
Director Bender moved, and Director Aguera seconded, that the Board:
• Approve Resolution 2009-XX, directing that competitive bidding be dispensed with in
connection with the construction work on Skislope Way
• Award a contract for construction to AM-X Construction and Excavation in the of
$129,214.80, plus a 10% change order allowance not to exceed $12,921.48 for a
total not to exceed $142,136.28
• Authorize the transfer of up to $79,111.89 from COP funds to the Water Department
General Fund and up to $11,409.97 from the Water Department Facility Fees to the
Water Department General Fund for the pipeline construction in the contract; and
authorize the transfer of up to $51,614.42 from the Electric Facilities Fund to the Wa-
ter Department General Fund for the electrical conduit construction in the contract.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF A CONTRACT WITH SOUTHWEST GAS This involves a
contract with Southwest Gas to provide service to the District headquarters.
Director Bender moved, and Director Aguera seconded, that the Board approve the contract
with Southwest Gas Corporation to provide natural gas service to the District's Office
complex. ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF AWARDING A CONTRACT FOR PROPANE TO NATURAL GAS
CONVERSION This item involves award of a contract to convert the District
Headquarters to natural gas.
Director Bender moved, and Director Sutton seconded, that the Board award the contract
for the natural gas conversion to B&B Plumbing of Truckee in the amount of $24,769.00
plus a 10% change order authority for a total amount not to exceed $27,245.90.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF SETTING THE SOLAR REBATE FOR THE REMAINING YEARS
OF THE SB1 PROGRAM This item involves a review of the SB1 Solar Program Re-
bate Amounts.
Director Hillstrom moved, and Director Aguera seconded, that the Board decrease the 2010
rebate dollars by 10% for 2011 and to reduce succeeding year's rate by 10% each year until
the program ends in 2017, according the following schedule:
• 2011 $3.65 per watt installed
• 2012 $3.28 "
• 2013 $2.95 Is
• 2014 $2.66 "
• 2015 $2.39 "
• 2016 $2.15 "
• 2017 $1.94 "
ROLL CALL: All Directors aye, by voice vote. SO MOVED
2 Minutes: Sept. 16, 2009
REJECT ALL BIDS PERTAINING TO THE DONNER LAKE CIRCUIT NO. 3 UNDER-
GROUND FEEDER PROJECT This item concerns the possible rejection of all
construction bids for the Donner Lake Circuit No. 3 Underground Feeder Project.
Director Hillstrom moved, and Director Aguera seconded, that the Board reject all bids for
the Donner Lake Circuit No. 3 Underground Feeder Project as not being in the best
interests of the District. ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF A CHANGE ORDER FOR THE TREE TRIMMING CONTRACT
Consideration of a Change Order for the Tree Trimming Contract
Director Hillstrom moved, and Director Bender seconded, that the Board authorize Contract
Change Order No. 1 in the amount of $20,000 increasing the total Tree Trimming contract
amount from $192,000 to $212,000.
ROLL CALL: All Directors aye, by voice vote. SO MOVED
BUDGET
DISCUSSION OF FY10 & FY11 BUDGET: OBJECTIVES, GOALS, ASSUMPTIONS,
LABOR, AND EXISTING DEBT This item continues the process for preparation of the
FYI & FYI Budget.
Mary Chapman gave a presentation:
• FY09 Approved Budget Highlights (in millions of dollars)
Electric Water Total District
Operating Rev & investment earnings $23.8 $10.7 $34.5
Transfers from Other Funds 1.1 10.0 11.1
Total Source of Funds $24.9 $20.7 $45.6
Operating Expenses $18.7 $ 6.9 $25.6
Debt Service 3.5 3.5 7.0
Transfers to Reserves 0.6 1.7 2.3
Capital Projects 2.1 8.6 10.7
Total Use of Funds $24.9 $20.7 $45.6
Full Time Equivalent 38 33 71
• FY09 Electric Budget Categories — Paid by Rates
Purchased Power 49%, Labor 19%, Debt 16%, Supplies/Materials/Outside Svcs 8%,
Conservation/Public Benefits 5% and Reserves 3%
• FY09 Water Budget Categories— Paid by Rates
Labor 35%, Electric Power 16%, Debt 18%, Supplies/Materials/Outside Svcs 16%,
Meters 7% and Reserves 8%
• 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 man-
ner at the lowest practical cost
3 Minutes: Sept. 16, 2009
• Title 1 Mission, Objectives & Goals- proposed New Goal: "Provide key leadership in
the stewardship of the District's aquifer, watershed, and natural infrastructure."
• New Information
o Labor rates:
■ Estimated to be flat in FY10
■ Estimated increase of 3% in FY11
■ Labor negotiations are in process
■ Full-time equivalents (FTE) reduced by 4 through attrition
■ 3 in Electric Department
■ 1 in Water Department
■ Fiber assets will provide new revenue source
o Most operational expenses flat or slightly increased 0% - 3%
o No new debt
o Current Electric Department Debt
■ 12/31/2009 principal balance will be $12.4 million
■ Annual principal and interest payments are $3.5 million
■ Last payment of the 2003 COPs is due January 1, 2013
■ Payment source is from rates
■ No new debt planned for FY10 & FY11
o Current Water Department Debt
■ 12/31/2009 principal balance will be $40.1 million
■ Annual principal and interest payments are:
■ $3.3 million through 2017
■ Decreasing in subsequent years
Last payment is due 2036
■ Payment sources: 54% rates, 15% facilities fees, 31% assessments & sur-
charges
■ No new debt planned for FY10 & FY11
• 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.
Board discussion:
• Could you explain the meaning of"stewardship" in the proposed goal
• This is a good start toward the rest of the budget workshops
• Is there a reason why the staff wants to leave out the word "adequate" in the Mission
Statement
• Like no new debt for 2010 and 2011
• What kind of debt do other districts have compared to ours
• The Board made a decision to do a COP to get ahead of the operations and main-
tenance issues, and begin pipeline replacement
• Even though the debt is higher on the water side, the pipelines have a long life and
therefore the cost can be spread over 75 years - rate payers share the cost over time
• Appreciate the District staying lean and mean- keeping the number of employees
down to 67
• How many of the four vacancies are already in 2009
4 Minutes: Sept. 16, 2009
WORKSHOP
DISCUSSION ON DISTRICT STREET LIGHTS Discuss District Street and Security
Light Service as applied in District Code 7.52
Steve Hollabaugh gave a presentation:
• Background / History
o A workshop was held at the August 19, 2009 Board meeting
o District has had street and security lights within the District for a long time
o Street and security lights are billed and viewed the same
o Street lights are normally installed along streets
o Security lights are normally installed on private and commercial property
o District Code Title 7, Chapter 7.52 (Street and Security Lights Service) was ap-
proved by the Board in November 2008
o Chapter 7.52.020.1 (B) excerpt: The District intends to research and locate cus-
tomers of record for each street light and assign appropriate billing. If there is no
corresponding customer or owner of record, the street light may be removed.
o The District has been reviewing all opportunities to maximize efficiency and re-
duce cost to our customers
• The un-owned streetlights are costly to our customers due to the unfunded
energy usage
• Annual operating costs is between $15,000 to $30,000 per year
• New Information
o Board inquired about forming a Street Lighting Assessment District and program
status
o The District has removed 34 un-billed streetlights to date for a total of 5,100 watts
o Staff has estimated the cost of formulating a Street Lighting Assessment District
o Assessment District Formation Costs: (estimate)
LAFCO Fees $ 25,000
Engineering study 125,000
Mapping facilities 25,000
Legal Costs 50,000
Capital Cost of 500 new installations 1,500,000
Contingency 25% 431,250
Sub total $2,156,250
o Annual Operating Costs: (FY 09 dollars)
Energy costs (for 500 efficient installations) $27,000
Operation costs — annual maintenance 30,000
Administrative costs 25,000
Contingency 25% 20,500
Sub total $102,500
First year Grand Total $2,258,750
o Assumptions: $2,200,000 financed, 10 years, 6% interest,13,086 customers
o Annual payments equal $299,000 per year or$22.84/year/customer
o The Board also requested staff begin to develop a public outreach plan to gauge
customer interest in the District forming a street lighting assessment district
o Outreach plan would likely include:
■ Budget for developing and implementing the outreach plan
5 Minutes: Sept. 16, 2009
■ Approximately 60 to 80 hours of staff time
■ Developing a web-based survey
■ Extensive outreach and advertising
Public input:
• 1 pay more than $22/year for my security light on the garage
• Email received prior to Board meeting, read by President Hemig:
I believe that the TDPUD should not be engaged as the lead agency on street
lighting. For the safety aspect this is a responsibility of the Truckee Police Depart-
ment and the Town of Truckee. Individuals may have their own lights depending
upon what they think their needs might be but lights should not be forced upon those
who do not want them. All lights that are currently used or for future use should be of
a Dark Sky compliant construction.
I also have concerns with a lighting district would effectively ruin our night sky.
One of the truly wonderful aspects of living in a small, high altitude town is the ability
of seeing the numerous starts and even the Milky Way at night. This is a unique fea-
ture that very few humans on our planet can experience and every light that is turned
on at night reduces our ability to see our night sky. Please refer to
http://www.darksky.org/for more information on how important our night Sky is.
The last issue is that of money. This is a large financial burden that many of
our full time residents cannot shoulder nor should they be forced to. A quick look into
our local paper will show that the number of foreclosures far out paces the number of
available jobs. Financially this would be wrong for a great number of people. 2.2 mil-
lion dollars in the first year is an amount even those with strong stomachs would have
a hard time swallowing.
I urge you as directors to terminate this project.
Board discussion:
• At the last meeting, Board asked staff to develop a customer cost
• Do we want to go forward with a street lighting assessment district
• Not in favor of a lighting district and do not move forward with a survey
• If people want security lights, there is already a program in place
• Staff is doing a good job removing the unpaid street lights
• Current process Is great and do not want a lighting district
• Is the Town of Truckee willing to take over some street lights
• How did staff come up with 500 new street lights
• Would like to see staff evaluate street lights lit by solar power- also look into pumping
water with solar power
• Would not vote for a street lighting district unless there was a lot of support in Town
• What about only placing street lights at major areas and roads into subdivisions
• The question is: "Does the District want to pursue a formal street lighting district and
put more Board and staff time into this"
• Maybe conservation can look into alternative lighting
• No, I do not want to move forward with a street lighting assessment district
• From the District and Board point of view, no more resources should be spent on a
street lighting district, but staff can work on other alternatives
• Maybe encourage the Town of Truckee to look into lighting
6 Minutes: Sept. 16, 2009
REVIEW OF THE DISTRICT MISSION STATEMENT This item involves the review of
the District Mission Statement.
Steven Poncelet gave a presentation:
• Background / History
o Title 1, General Provisions, Chapter 1.05 contains the District's Mission Statement
o March of 2008 was the last update
o Previously modified March of 2007
o Original document adopted July of 2006
o August 19th Board workshop on District Mission Statement
o Staff directed to produce a draft revision
• The current Mission Statement (1.05.010) of the District is:
"The Mission of Truckee Donner Public Utility District is to provide adequate, reliable
and high quality water and electrical power services, and to manage District re-
sources in an open, responsible, environmentally sound manner at the lowest prac-
tical cost. In pursuing this Mission, the District will aggressively pursue renewable
energy sources as set forth in its Renewable Portfolio Standard (Chapter 7, Electric)."
• The new draft Mission Statement of the District is:
"The Mission of Truckee Donner Public Utility District is to provide reliable, high quali-
ty water and electrical power services while meeting customer demand, and to man-
age District resources in a safe, open, responsible, and environmentally sound man-
ner at the lowest practical cost."
There was no public input.
Board discussion:
• Not a significant change-just some word-smithing
• Shorter Mission Statement is better
• Good to get rid of the RPS statement- too specific for a Mission Statement
• Also like word "adequate" substituted with "meet customer demand"
• To point out the reason for word adequate: in the past, the District has had problems
with water pressure where it was not adequate
• Feel word adequate is important to the Mission Statement- as much as words reliable
and high quality
• The definition of adequate means barely sufficient- contradicts words high quality
• In the Mission Statement, the word adequate makes the District sound mediocre
• Like the wording meet customer demand
• Doesn't state law require the District to deliver water and electric- wanted to show the
District was interested in adequately covering demands
• Adequate could mean mediocre- want to say we are better than that
• Also good to use the word safe
• RPS is really a subset to the Mission Statement
• Good to have it cleaned up- more positive
• Leave out adequate- does not bring a high standard- does not mean high quality
• Want a strong Mission Statement
• Bring back as a formal action item later as is now re-written
• Will go along with phrase "meeting customer demand"
7 Minutes: Sept. 16, 2009
ROUTINE BUSINESS
TREASURER'S REPORT: AUGUST 2009
Approval of the report: Director Aguera moved, and Director Bender seconded, that the
Board approve the treasurer's report for the month ended August 31, 2009.
ROLL CALL: All Directors, aye. SO MOVED.
Approval of disbursements: Director Hillstrom moved, and Director Aguera seconded, that
the Board approve the August 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.
APPROVAL OF MINUTES : AUGUST 19 AND SEPTEMBER 2, 2009
Director Bender moved, and Director Aguera seconded, that the Board approve the minutes
of August 19 and September 2, 2009. ROLL CALL: All Directors, aye. SO MOVED
CLOSED SESSION- Items were removed from the agenda.
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9,
SUBDIVISION (A), EXISTING LITIGATION: CLAIMS OF PACIFIC RIM CONSTRUCTION,
INC.; ADVANCED ASPHALT; AND TEICHERT
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957, PUBLIC
EMPLOYEE PERFORMANCE EVALUATION - GENERAL MANAGER
Report from closed session
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 8:12 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
J. Ron Hemig, President
Prepared by
Barbara Cahill, Deputy District Clerk
8 Minutes: Sept. 16, 2009
r �
REGULAR MEETING
October 7, 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 Vice President Bender.
ROLL CALL: Directors Joe Aguera, Jeff Bender, John Hillstrom and Pat Sutton were
present. Director Ron Hemig was absent.
EMPLOYEES PRESENT: Kathy Neus, Bob Mescher, Mary Chapman, Steve Hollabaugh,
Steven Poncelet, Neil Kaufman, Rosana Matlock, Nancy Waters, Michael Holley and Barbara
Cahill
CONSULTANTS PRESENT: Steve Gross
OTHERS PRESENT: Juanita Schneider, Susan Auzelc, and one other member of the public
CHANGES TO THE AGENDA
There were no changes to the agenda.
PUBLIC INPUT
There was no public input.
DIRECTOR UPDATE
Directors Aguera, Bender and Hillstrom attended the annual Northern California Power
Association conference last week. They found it to be interesting, and now know more about
the NCPA and what they are doing in the next year.
Director Sutton asked agenda item No. 7, Consideration to Extend the Janitorial Services
Contract be removed from the Consent Calendar.
CONSENT CALENDAR
CONSIDERATION OF A RESOLUTION TO ADOPT PROPOSED REVISIONS TO
DISTRICT CODE, TITLE 1 GENERAL PROVISIONS This item involves adopting a
resolution to amend the District Mission Statement, Goals and Objectives.
Director Hillstrom moved, and Director Aguera seconded, that the Board approve the consent
calendar. Director Hemig was absent. There was a show of hands. SO MOVED
Minutes: October 7, 2009
ACTION ITEM
CONSIDERATION TO EXTEND THE JANITORIAL SERVICES CONTRACT This item
involves an extension of the Contract for the District Office Janitorial Services.
Director Aguera moved, and Director Hillstrom seconded, that the Board extend the contract
for janitorial services for one additional year to Dependable Cleaning Service of Truckee at
an annual cost of$65,064.00.
ROLL CALL: Director Hemig, absent; All other Directors aye, by voice vote. SO MOVED
BUDGET ITEM
OPERATING/CAPITAL BUDGET PRESENTATIONS:
A. BOARD OF DIRECTORS AND GENERAL MANAGEMENT
B. ADMINISTRATIVE SERVICES
C. CONSERVATION
D. POWER SUPPLY
2010 and 2011 Fiscal Year Operating and Capital Budget Preliminary Overview
Bob Mescher, Kathy Neus, Mary Chapman, Steven Poncelet and Stephen Hollabaugh all
participated in the presentation:
• Background / History
o July, 2008 — Board adopted Title 3 revision requiring a two-year budget
o Since July, 2009 — Staff has been preparing FY10 and FY11 budgets
o September 2, 2009 — Purchase power plan presented
o September 16, 2009 — Mission statement, objectives & goals, and budget
assumptions were reviewed
o Purchase power plan
■ 2% decrease in purchased power costs in FY10 versus FY09 budget
■ 5% increase in purchased power costs in FY11 versus FY10
o Other budget assumptions
■ Labor rates flat in FY10 & increase 3% in FY11
■ Staffing level decreased by 4 full-time equivalents (FTE) through attrition
■ 3 Electric Department and 1 Water Department
o Fiber assets will provide an additional Electric revenue source
o Operational expenses will remain flat or slightly increased, ranging from 0% to 3%
o No new debt for Electric and Water
o Additional budget assumptions
■ Employee medical & retirement cost increase in FY10 & FY11
■ Water conservation efforts increase significantly in FY11
o Electric revenue requirements
■ FY10 — Decrease in demand, no change in rates
■ FY11 — Increase in demand, estimated 3% revenue increase needed in FY11
■ Consider rate study in early FY10
o Electric expenses
■ FY10 — Decrease in operating & capital expenditures
■ FY11 — Increase in operating expenses, decrease in capital expenditures
2 Minutes: October 7, 2009
o Water revenue requirements
■ HDR cost of service study
■ Increases 1.75% in FY10 and FY11
■ Rate adoption in process
■ Residential volumetric billing
o Water expenses
■ FY10 - Increase in operating expense, decrease in capital expenditures
■ FY11 - Increase in operating expense, decrease in capital expenditures
■ 2006 COP pipeline replacement ends
• Comparison of Budgets: FY09, FY10 and FY 11 (in thousands)
FY09 FY10 FY11
Electric Water Electric Water Electric Water
Revenue $23,854 $10,701 $23,010 $11,190 $23,920 $11,370
Expenses 18,694 6,926 18,300 7,010 18,900 7,370
Income $5,160 $3,775 $4,710 $4,180 $5,020 $4,000
Plus:
From Funds $2,571 $10,250 $1,670 $7,190 $980 $4,250
Less:
Debt Service 3,540 3,503 3,500 3,350 3,450 3,310
Capital Projects 3,606 8,880 2,290 5,790 1,940 2,740
To Reserves 585 1,642 590 2,230 610 2,200
Surplus (Deficit) $-0- $-0- $-0- $-0- $-0- $-0-
• Board of Directors
o $20K election expense in FY10
o Medical cost increase in FY10 and FY11
o No capital expenditures
o Comparison of Budgets: FY09, FY10 and FY 11 (in thousands)
FY09 FY10 FY11
Supplies, Materials Services 26 27 28
Election Expense -0- 20 -0-
Miscellaneous 136 139 145
Total Operating Costs 162 186 173
• General Management
o No change in staffing
o Medical & retirement cost increase in FY10 and FY11
o Industry dues decreased in FY10
o No capital expenditures
o Comparison of Budgets: FY09, FY10 and FY 11 (in thousands)
FY09 FY10 FY11
Labor 512 510 533
Supplies, Materials Services 204 195 197
Industry Membership/Dues 139 117 122
Miscellaneous 21 17 15
Total Operating Costs 876 839 867
3 Minutes: October 7, 2009
• Administrative Services
o No change in staffing
o Medical & retirement cost increase in FY10 and FY11
o Decrease general insurance in FY10
o Increased bad debt write off
o Allocation of common expenses shifts from 60/40 for Electric and Water to 50/50
o Capital expenditures: $20K in FY10 for major accounting software upgrade
o Comparison of Budgets: FY09, FY10 and FY 11 (in thousands)
FY09 FY10 FY11
Labor 1,802 1,824 1,914
Supplies, Materials Services 1,036 1,043 1,063
General Insurance
Bad Debt Expense 34 38 39
Total Operating Costs 2,872 2,905 3,016
Capital Expenditures 92 95 75
• Conservation & Public Information
o No change in staffing in FY10
o Medical & retirement cost increase in FY10 and FY11
o More focus on water conservation in FY10 & FY11
o Less labor required for SB1 — CA Solar Initiative in FY10
o Additional Y2 full time equivalent (FTE) in FY11
o Comparison of Budgets: FY09, FY10 and FY 11 (in thousands)
FY09 FY10 FY11
Conservation-Electric 986 1,011 1,042
Conservation-Water 126 134 195
SB1-CA Solar Initiative 225 221 227
Public Information 103 106 113
Legislation & Regulation 20 21 23
Other 59 61 63
Total Operating Costs 1,519 ,1554 1,663
Capital Expenditures 40 41 42
• Power Supply
o Reduce 1 FTE from FY09 budget to FY10
o No change in staffing in FY11
o Medical & retirement cost increase in FY10 and FY11
o Capital expenditures for computer hardware & software: $24K AutoCAD upgrade in
FY10 and $60K server upgrades in FY11
o Comparison of Budgets: FY09, FY10 and FY 11 (in thousands)
FY09 FY10 FY11
Labor 562,000 517,000 549,000
Supplies, Materials 143,000 131,000 133,000
Professional Services 98,000 98,000 99,000
Total Operating Costs 803,000 746,000 781,000
Capital Expenditures 84,000 97,000 158,000
4 Minutes: October 7, 2009
• Next steps
o October 21, 2009
■ Operating and Capital Budget Workshop: Electric and Water
■ Reserve Funds Workshop
■ Revenue and Rates Workshop
■ Set Public Hearing
■ Publish draft budget books
o November 4, 2009
■ Present draft budget
■ Present Financial Master Plan
■ Public Hearing
o November 18, 2009
■ Adopt budget
■ Adopt water rates
■ Adopt overhead rates
Public Input:
• What is happening with the fiber lease- has one been signed yet?
• What type of rebates are available for customers
Board discussion:
• 2010 has a decrease of 4 full time employees
• What is the headway on leasing the fiber assets
• What is the projected revenue for fiber in 2010
• How can there be no capital improvement in 2010
• In the administrative budget, how can software cost $20,000
• Do the SB1 numbers include the hold back/refund dollars
• What are the public benefit percents for 2010 and 2011
• In Power, how did staff come up with the $60,000 for the server
• Does it make any sense to just lease servers
• If server replacement is every 4 years, when is the next cycle
• So all Auto Cad seats will be brought up to date and be on one platform
• Out in the cold- how much does one full time employee reduce the FY09 budget
• There is not enough information to know the dollars
• What is the financial master plan- who prepares, approves and implements
• Is it possible to get a list of all employees and their wages
• What are overheads
WORKSHOP
DISCUSSION OF THE SCHEDULE FOR ADOPTING NEW WATER RATE This item
involves a discussion of legal process required to complete the adoption of the new
water rates: Prop 218, letter to customers and owners, public hearing, etc.
Mary Chapman gave a presentation:
• Background / History
o Ca State Law requires the District to begin volumetric billing in January, 2010
5 Minutes: October 7, 2009
o District is working to transition from flat rate water bills to volumetric water bills
o District is considering a 1.75% water rate increase in FY10 & 1.75% increase in
FY11
o The Board has gone through a lengthy process to make sure the District complies
with Prop 218 requirements relating to a water rate increase
• To date, the Board has taken the following action:
0 4/15/09 Awarded a contract to HDR to perform a Water Rate Study
0 5/6/09 Workshop to discuss Water Rate Structure Alternatives
0 5/20/09 Workshop to discuss Non-Conforming Water Accounts
0 6/3/09 Workshop to discuss Water Rate Structure Alternatives
0 7/5/09 Workshop to discuss the Water Rate Study Report
0 8/19/09 Workshop to discuss the Water Rate Study Report
0 9/2/09 Workshop to discuss the process to adopt the Proposed Water Rates
0 9/2/09 Workshop to discuss Non-Conforming Water Accounts
0 9/2/09 Workshop to review draft ordinance: Proposed Water Rates FY10 & FY11
0 9/16/09 Adopted the Water Rate Study Report
0 9/16/09 Approved ordinance setting Proposed Water Rates for FY10 & FY11
0 9/16//09 Scheduled a Public Hearing for November 18, 2009
0 9/23/09 Mailed notices for Public Hearing
• Remaining schedule for implementation of new rate structure:
0 10/21 & 10/23/09 Publish notice in Sierra Sun for Public Hearing on Nov. 18, 2009
0 11/18/09 Hold Public Hearing on Proposed Water Rates & take rate adoption vote
o January, 2010 Implement new water rates
There was no public input.
Board discussion:
• Would like a report from staff as to what some rate payers will pay with the new rates
versus now
• Some people do not have a calculator or computer to figure out the new rate- need to
have something available so customers can calculate their new rate
• So in 2010, residential customers will still be on fixed rates
• What percent of customers will have meters and when will they be on the new
volumetric rate
• Rates cannot go up for 30 days after the ordinance is adopted
• Information should say what date the rates go into effect
CLOSED SESSION
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9,
SUBDIVISION (A), EXISTING LITIGATION: CLAIMS OF PACIFIC RIM CONSTRUCTION,
INC.; ADVANCED ASPHALT; AND TEICHERT
CONFERENCE WITH LABOR NEGOTIATOR: SECTION 54957.6 OF THE GOVERNMENT
CODE. DISTRICT REPRESENTATIVE: MICHAEL D. HOLLEY
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9,
SUBDIVISION (b), POTENTIAL LITIGATION, THREE CASES
6 Minutes: October 7, 2009
Vice President Bender recused himself for the final closed session item for a potential conflict
of interest.
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.8,
CONFERENCE WITH REAL PROPERTY: 14630 GLENSHIRE DRIVE APN 49-011-31;
DISTRICT NEGOTIATOR: GENERAL MANAGER; NEGOTIATING PARTIES: KELLER
WILLIAMS; UNDER NEGOTIATION: PRICE AND TERMS
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 9:00 PM.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
J. Ron Hemig, President
Prepared by
Barbara Cahill, Deputy District Clerk
7 Minutes: October 7, 2009