The URL can be used to link to this page

Home My WebLink About15 Meeting Minutes Agenda Item # 15 Pubhc Utility District MINUTES To: Board of Directors From: Barbara Cahill Date: November 17, 2010 Minutes for the Meeting Dates Approval of Minutes for October 20 and November 3, 2010 REGULAR MEETING October 20, 2010 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 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 Hillstrom. ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig, John Hillstrom and Tony Laliotis were present. PLEDGE OF ALLEGIANCE General Manager Michael Holley led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT: Kathy Neus, Steven Poncelet, Rosana Matlock, Nancy Waters, Bob Mescher, Michael Holley and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Juanita Schneider, Dan Warren and Josh Susman CHANGES TO THE AGENDA There are no changes to the agenda. PUBLIC INPUT Josh Susman stated that it has come to his attention that some Placer County residents have been PUD rate payers for twenty years, yet the PUD has never annexed them. Therefore they do not have a right to vote for the Board or Board issues. How many of these rate payers are not aware? Per Nevada County LAFCo, it is up to the District to do an annexation. DIRECTOR UPDATE President Bender attended the California LAFCo meeting in Palm Springs from October 6 to 8, 2010. The meeting was excellent and addressed issues. Two unsuccessful endeavors were City of San Francisco to create its own municipality, and SMUD to take over a portion of PG&E territory. CONSENT CALENDAR Director Hemig asked to pull agenda item No. 7 "Award of Janitorial Services Contract" and place on Action Items. Director Laliotis asked to pull agenda item No. 8 "Award Contact for Water Efficient Toilet Exchange Program" and place on Action Items. 1 Minutes: October 20, 2010 CONSIDERATION OF INCREASING THE CONTRACT FOR THE PURCHASE OF CFL'S This item involves increasing the contract to purchase CFL's for Million CFL Program Director Hemig moved, and Director Aguera seconded, that the Board approve the consent calendar. ROLL CALL: All Directors aye, by voice vote. SO MOVED ACTION ITEMS CONSIDERATION OF THE AWARD OF A JANITORIAL SERVICES CONTRACT This item involves a contract for Janitorial Services for the District Headquarters building. Director Laliotis moved, and Director Hillstrom seconded, that the Board award the contract for janitorial services as detailed in the District's RFP, to Debbie Madera Cleaning Service at a cost of $63,000. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF AWARDING A CONTRACT FOR THE WATER EFFICIENT TOILET EXCHANGE PROGRAM This involves a contract for the Water Efficient Toilet Exchange Program. Director Hillstrom moved, and Director Hemig seconded, that the Board award a contract to Western Nevada Supply for the Water Efficient Toilet Exchange Program for a base amount of$22,500 plus a 10% change order authorization for a total amount not to exceed $24,750 plus tax. ROLL CALL: All Directors aye, by voice vote. SO MOVED WORKSHOPS OUTCOME OF NEIGHBORHOOD OUTREACH: OLYMPIC HEIGHTS This item involves the Neighborhood Resource Mobilization pilot in Olympic Heights held on September 18, 2010. Steven Poncelet gave a presentation: • District seeks innovative, cost-effective ways to deliver programs o Collaborate with other agencies/partners o Leverage resources o Maximize community benefits • Delivering programs and services directly to a neighborhood o Concept started when developing ESP and RES o Evolved to a `bundle' of programs and services o Evolved to a `bundle' of agencies • "Public Services Together...One Neighborhood at a Time" o District, Town of Truckee and Nevada County ■ Truckee Tahoe Airport District & California Highway Patrol also participated o Pilot event held Saturday, September 18th in Olympic Heights o Each agency brought existing programs and services ■ ESP/RES (surveyors on-hand) ■ Lighting give-a-ways ■ Water-Efficient Toilet Rebate Program ■ Information on water meters, customer leaks, and the Customer Leak Repair Rebate Program o `Block-party' format with BBQ • Olympic Heights Event Review 2 Minutes: October 20, 2010 o Very strong customer participation: over 125 attendees (-25% of neighborhood) o District's programs well accepted ■ Distributed over 1,000 CFL's ■ Conducted 10 residential energy surveys ■ Provided other measures and information ■ Staff& board engaged with customers o District, Town of Truckee, and Nevada County held de-brief ■ Reviewed event, costs, and benefits ■ Very positive community outreach ■ Staffs of each agency are interested in continuing program • Key questions going forward: o Are the agency governing Board's interested in continuing with the program? o What new agencies/organizations should be invited to participate? o How many events should be planned per year to serve the overall community? o Which neighborhoods do we serve and in what order? • Fiscal Impact: total direct costs of event was less than -$2,500 o Shared between District, Town of Truckee, and Nevada County o District's portion in the approved FY10 budget o Cost for future events to be determined by neighborhood specifics & be shared Public input: • A lot of positive feedback • Partner with other agencies • Give to friends in Place County also Board discussion: • Keep doing- at least two times a year • Get other public agencies • Why did the Airport participate • Public agencies should have a chance to participate • Get low hanging fruit first • Do Glenshire and Armstrong and divide up larger neighborhoods • Do Tahoe Donner full time residents- can we get information from the GIS • Good to have Airport District at Olympic Heights • Tahoe Donner—have for two days in the summer • Three events each year in enough • Coordinate with Homeowner Associations- multiply benefits • Even though penetration was 25% initially, it compounds to others • Good phrase "government working for you" • Gateway and Meadow Park would be good neighborhoods to hit next year • Do three to four events per year • May need three to five events to cover Tahoe Donner-will come if they can walk+ • What is the cost of staff time • Amazing thing • Too many vendors may diminish return • Excellent program • Government together and show what they do for the public • There is value in Tahoe Donner • Take on couple larger neighborhood and get a feel for added level of participation 3 Minutes: October 20, 2010 • Tahoe Donner- may need to work with the Homeowners Association- use parking lot for the day- valuable to tap some day • Open to other agencies to share the message • Continue • Open to other agencies • Do three to four per year • How many hours of staff time to prepare for this event • Should events have size limits DISCUSSION OF CALIFORNIA LEGISLATIVE AND REGULATORY AFFAIRS UPDATE This item involves information about S13722, AB2514, SB1476 and Propositions 22, 23, 26 and RES Regulations. Steve Hollabaugh gave a presentation: • Legislative Session: Renewable Portfolio Standard (SB722 — Simitian) o Would have required statewide 33% RPS by 2020 for all California utilities, CEC enforcement, limited resource flexibility o NCPA was actively involved in negotiations at the Capitol ■ Eliminated CEC cost-containment language and CEC oversight provisions for public power ■ Provided all utilities with greater flexibility (in-state vs. out-of-state) to meet RPS requirements ■ Session ended before vote could be taken by Senate ■ RPS legislation debate to continue in 2011 o For a local publicly owned electric utility that was in existence on or before January 1, 2009, that provides retail electric service to 15,000 or fewer customer accounts in California, and is interconnected to a balancing authority located outside this state but within the WECC, and eligible renewable energy resource includes a facility that is located outside California that is connected to the WECC transmission system, if all of the following conditions are met: ■ Electricity generated by the facility is procured by the local publicly owned electric utility, is delivered to the balancing authority area in which the local publicly owned electric utility is located, and is not used to fulfill renewable energy procurement requirements of other states. ■ Local publicly owned electric utilities participate in, and comply with, RPS accounting system administered by the Energy Commission pursuant to Article 4. ■ The Energy Commission verifies that the electricity generated by the facility is eligible to meet the RPS procurement requirements. • Legislative Session: Energy Storage (AB2514 — Skinner) o NCPA secured a bill that did the following for public power: ■ Allows two years for POU to evaluate energy storage systems ■ Allows local communities to establish targets ■ Eliminated the $25,000 per day penalty for "non-attainment" ■ Limited CEC's involvement to reporting ■ Signed by the Governor • Legislative Session: Utility Consumer Privacy (SB1476-Padilla) o Ensures that customer privacy is not compromised through information obtained from smart grid programs 4 Minutes: October 20, 2010 o NCPA retained ability of utility to continue utilizing third-party vendors to support smart grid and other programs, while protecting privacy of customers' information o Signed by the Governor: • Ballot Initiative: Proposition 22 — "The Local Taxpayer, Public, Safety, and Transporta- tion Protection Act" o Prohibits the State from interfering with local government funding ■ Gasoline excise tax and transportation funding o Eliminates the State's authority to borrow local government property tax funds • Ballot Initiative: Proposition 26 — "Supermajority Vote to Pass New Taxes and Fees Act" o Broadens the definition of a local tax ■ Classifies as taxes some fees & charges that government currently may impose with a majority vote o Fees and charges that benefit the public broadly that are currently approved with a majority vote would have to be approved by a 2/3rd vote o Potential Impacts on Public Power ■ Likely to require new electric rates to be set at cost of service or be subject to voter approval ■ Could eliminate utility's ability to make transfers to the general fund in the future • Ballot Initiative: Proposition 23 — Suspends AB32 o Suspend AB 32 until the State's unemployment rate is less than 5.5% for four consecutive quarters. Includes: ■ The proposed ARB regulation that is intended to require privately and publicly owned utilities to obtain a 33 percent renewable portfolio ■ The proposed cap-and-trade regulation ■ The "low carbon fuel standard" • California Air Resources Board (CARB) Update Cap-and-Trade Proposal o CARB scheduled to adopt cap-and-trade regulations in December 2010 o CARB staff preparing to release "complete" package of regulations by October 26 o Key issues being considered ■ Method of allowance distribution ■ Length of compliance period ■ Auction design and use of revenues ■ Rules and potential limits on trading ■ Rules for use of offsets ■ Recognition for early and voluntary action ■ Enforcement and penalties for non-compliance o CARB is struggling to develop rules • Renewable Energy Standard Regulations o CARB adopted RES regulations (9/23) ■ Governor asked CARB to wait to see how SB 722 process unfolded in legislature o Draft regulations generally friendly to public power and incorporates NCPA positions ■ Allows flexible use of RECs ■ Exemption for utilities with retail sales below 200,000 MWH ■ Allows large hydroelectric generation to be used to satisfy portion of RES requirement o Enforcement an issue: CARB staff said it would not enforce compliance through 2017 • NCPA Leg & Reg Member Services: reporting and compliance o NCPA gearing up for next energy efficiency report due March 15, 2011 o Report consolidation efforts continue 5 Minutes: October 20, 2010 ■ New templates for renewables reporting ■ CEC developing regulations to implement NCPA-sponsored Power Content Label changes ■ Updated Green House Gas (GHG) reporting regulations will reduce duplicative utility reporting efforts at CARB and CEC o Contracting support for members ■ GHG verification services ■ Efficiency Measurement & Verification (EMV) services o NCPA Public Benefits Committee meets monthly and shares best practices There was no public input. Board discussion: • Thanks to staff for knowing about the regulatory world • Each director needs to have a feel for what is doing on externally- every director should have a discipline that they are following outside of our meetings, assign a Director to stay on top of different aspects and have them report back to the Board- for example participate in UAMPS or NCPA; too much going on to just react in here • All regulation says natural gas is a solution at least on the short term, especially with the Cap & Trade; it is cheap today and available; it backs other renewables such as wind and is available through UAMPS; in the future it may be a move from coal to natural gas • What is Energy Storage- is it like ice storage in relation to air conditioning load- a peak shifting device • Energy Storage is a strange legislation- how can they mandate • Get Board members involved in other associations- expose to different areas of the industry- provide feedback and be aware • What other types of committee meetings are there through NCPA • Thanks for the information and update ROUTINE BUSINESS TREASURER REPORT: SEPTEMBER, 2010 Approval of the report: Director Hemig moved, and Director Aguera seconded, that the Board approve the treasurer's report for the month ended September 30, 2010. There was a show of hands. SO MOVED. Approval of disbursements: Director Aguera moved, and Director Hillstrom seconded, that the Board approve the September 2010 disbursements report. There was a show of hands. SO MOVED. APPROVAL OF MINUTES FOR SEPTEMBER 15 AND OCTOBER 5, 2010 Director Laliotis moved, and Director Hillstrom seconded, that the Board approve the minutes of September 15 and October 5, 2010. There was a show of hands. SO MOVED 6 Minutes: October 20, 2010 CLOSED SESSION PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION 54957 (E): GENERAL MANAGER PERFORMANCE PLAN REVIEW 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 9:00 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jeff Bender, President Prepared by Barbara Cahill, Deputy District Clerk 7 Minutes: October 20, 2010 REGULAR MEETING November 3, 2010 In accordance with District Code Section 2.08.010, the TDPUD minutes are action oniy minutes. All Board meetings are recorded on a digital format which is 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 Vice-President Hillstrom. ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig, John Hillstrom and Tony Laliotis were present. PLEDGE OF ALLEGIANCE Robert Mescher led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT: Bob Mescher, Rosana Matlock, Nancy Waters, Steve Hollabaugh, Michael Holley and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Dan Warren, Juanita Schneider and Kaitlin Backlund CHANGES TO THE AGENDA There were no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Laliotis thanked Dan Warren for running and thanked the community for coming out to vote. Director Hemig reported he went to the Truckee Chamber annual award dinner. The Truckee Donner PUD was nominated for the large business award. Truckee Land Trust received the large business award for the year. Director Hemig also thanked the public for voting. Director Hillstrom congratulated Ron and Tony for keeping their seats, and for Dan Warren running and showing up at the meeting. Director Aguera also congratulated the Directors. President Bender passed on his congratulations to Ron and Tony. He thanked Dan, Sarah and Josh for making the effort to run and be willing to serve on the Board. 1 Minutes: November 3, 2010 CONSENT CALENDAR CONSIDERATION OF THE APPOINTMENT OF GENERAL MANAGER AS THE LABOR NEGOTIATOR TO NEGOTIATE WITH THE DISTRICT'S UNREPRESENTED EMPLOYEES. Terms and Conditions of Employment for the Unrepresented Employees of the District. CONSIDERATION OF THE RETENTION OF UNCLAIMED FUNDS This item involves the retention of funds unclaimed by payees. CONSIDERATION OF THE ANNUAL IDENTITY THEFT PREVENTION POLICY This item involves review of the Identity Theft Prevention Policy. CONSIDERATION OF AN AMENDMENT TO THE FRINGE AGREEMENT WITH SIERRA PACIFIC POWER This item involves the First amendment to the Fringe Agreement with Sierra Pacific Power Company. Director Aguera moved, and Director Hillstrom seconded, that the Board approve the consent calendar. ROLL CALL: All Directors aye, by voice vote. SO MOVED WORKSHOP DONNER LAKE ASSESSMENT DISTRICT ANNUAL LEVY PAYMENT STATUS This item involves a recap of the debt status of the Donner Lake Assessment District. Bob Mescher gave a presentation: • The Donner Lake Assessment District (DLAD) o Purchased of the Donner Lake water system from the Del Oro Water Company o Replaced the majority of the Donner Lake water system • In 2001, liens placed on parcels in DLAD o Property owners in both Nevada and Placer Counties o Annual levies on property tax bills beginning 2001 and ending 2021 • Nevada County sends 100% of amount assessed o Nevada County carries the delinquencies, but reserves the right to reclaim delinquent amounts o Placer County only sends collected funds • District uses Willdan Financial Services to administer the annual levies including sending out delinquent notices • Annual Assessment o Nevada County $760,000 (1,500 parcels) o Placer County $ 74,000 (150 parcels) • Delinquencies o Nevada County Properties Tax Year Amount Past Due # of Parcels 2005/06 $1,625.40 3 2006/07 $3,287.88 7 2007/08 $9,100.35 19 2008/09 $12,445.03 25 2009/10 $22,831.53 46 Total Nevada County Past due $499290.19 2 Minutes: November 3, 2010 o Placer County Properties Tax Year Amount Past Due # of Parcels 2003/04 $497.54 1 2004/05 $496.94 1 2005/06 $1,058.00 2 2006/07 $1.071.72 2 2007/08 $1.347.95 3 2008/09 $2.091.98 4 2009/10 $3.242.74 7 Total Placer County Past due $9,806.87 Public input: • Wasn't all of Donner Lake pipeline replaced- not just the majority Board discussion: • How does the Teeter method work with delinquencies as they grow- or is this just Nevada County parameters • Is it just at the Nevada County discretion how they collect the delinquencies- is it the 5 year limit and then they do a foreclosure process • Of one day, Nevada county decided they wanted the money from us for the delinquen- cies, how much notice would they give us • The Donner Lake Assessment levy is on the tax bill- do they become delinquent because the entire tax bill is not paid, or just the Donner Lake portion • How do we recoup delinquent assessments • How often do owe make payment to the Donner Lake Assessment District loan • The loan is from the State Revolving Fund- a 20 year loan • Do we have a rate reserve to allow us to pay the Nevada County obligation if they recalled the funds • When is the 20 year loan complete GLENSHIRE SURCHARGE STATUS This item is a recap of the debt status of the Glenshire water system. Bob Mescher gave a presentation: • In 2002, the District acquired the Glenshire Mutual Water Company (GMWC) • $3 million of capital improvements were required o Pipeline extensions and replacements o Pumping capacity increase at Glenshire Drive Well o Well abandonment and other system upgrades • GMWC customers agreed to reimburse the District for these costs • The GMWC transferred all assets (cash and land) to the District o GMWC cash and land sales proceeds used to offset some of the capital improve- ment costs • District financed a portion of the upgrade cost o $1,740,000 15 year external loan o $246,000 internal loan • To pay off the external loan, Glenshire customers are assessed a $10.75 surcharge on their monthly water bills - surcharge is projected to end in 2017 3 Minutes: November 3, 2010 • Land sales, lease proceeds and surcharge proceeds were used to extinguish the internal loan • Surcharge and land lease proceeds o Proceeds ■ $10.75 per month billing surcharge since 2002 $1,508,918 ■ Lease proceeds from Glenshire fire Station 14,465 ■ Total Proceeds $1,523,383 o Uses ■ Principal & interest payments-$1,740,000 loan (9/30/10) $1,292,591 ■ Surcharge proceeds to extinguish internal loans 33,485 ■ Total Uses $1,326,076 o Fund Balance $ 197,397 o External Loan Balance ■ Principal balance on -$1,740,000 loan at 9/30/10 $110057389 Loan established November 2002, 15 years, 5.11% interest • In February 2009, internal loan was extinguished with the sale proceeds of the southern portion of the Glenshire Drive parcel and $33,000 of the accumulated surcharge • One remaining parcel, the northern portion of the Glenshire Drive parcel, was marketed for sale in 2009, but was removed from the market o Currently leased to the Glenshire Fire Station o Market for sale again in 2011 Public input: • With the loan at 5.11% 10 years ago, should it be refinanced Board discussion: • So the cost to refinance would be around a $40,000 fee • What is the $197,397 balance for- principal and interest payments • Why keep the $197,397 on hand- seems like a lot of money to have in an account • When was the internal loan paid • Is the $197,397 being used to pay this year's principal and interest payments • A Director asked Dan Warren, as a representative of Glenshire, if the property sold, what would the residents want to do: loan retire earlier or retire the surcharge. Mr. Warren said he had not been given any direction yet, but intends to take this information to the next Glenshire Homeowners meeting. • What is the principal and interest per year • Does the lease income for a year make a difference • What is the prepayment penalty on the loan • A view on the market for selling the property is both positive and negative: Glenshire area is not getting better as it has bank related sales, but lending side has a better chance because rehab loans are available which are then can turn into regular loans • How many customers are paying the surcharge in Glenshire • Spoke to people in Glenshire during the campaign and they thought the payment would decrease versus retire the debt sooner • Wouldn't it save the District time and effort to retire the debt sooner • But then people may want lower bills- look forward to Dan Warren's input • If land sells at $400,000, it could pay off sooner or reduce surcharge 4 Minutes: November 3, 2010 • Seems there are two choices if property is sold: pay down loan and refinance or take funds and adjust the surcharge • The $197,397 in the fund is like accumulating a year of payments • If don't pay off debt for a couple years, the prepay penalty would be less than $40,000 • When property sells, reconsider and have input from the Glenshire residents CLOSED SESSION Closed Session Pursuant to Government Code Section 54957.6, Conference with Labor Negotiator. District Representative: Michael D. Holley; Unrepresented Employees 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 6:58 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jeff Bender, President Prepared by Barbara Cahill, Deputy District Clerk 5 Minutes: November 3, 2010