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Home My WebLink About13 Meeting Minutes Agenda Item # 13 Public Utility District MINUTES To: Board of Directors From: Barbara Cahill Date: October 20, 2010 Minutes for the Meeting Dates Approval of Minutes for September 15 and October 5, 2010 F` REGULAR MEETING September 15, 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 6:01 PM in the TDPUD Board room by President Bender. ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig, John Hillstrom and Tony Laliotis were present. PLEDGE OF ALLEGIANCE Director John Hillstrom led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT: Kathy Neus, Steven Poncelet, Rosana Matlock, Nancy Waters, Mary Chapman, Bob Mescher, Michael Holley and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Juanita Schneider and Josh Susman CHANGES TO THE AGENDA General Manager Holley asked to remove agenda Item No. 10. Discussion and possible action regarding a pooling appendix with City of Murray for the Salt Lake Landfill Gas Generation and No. 15. Closed Session Pursuant to Government Code Section 54956.9, Subdivision (B), Potential Litigation, One Case. PUBLIC INPUT Juanita Schneider appreciates it when the Directors speak into the microphones so TV viewers at home can hear what they are saying. DIRECTOR UPDATE Director Hemig stated he will be attending the NCPA Conference on September 23 to 24. He wanted to remind the public the PUD is sponsoring the first Neighborhood event in Olympic Heights about programs and services of different agencies. There was also another article in the Sierra Sun about the closed Biomass Plant in Loyalton and the Lake Tahoe Plant. Director Hemig would like to have a workshop to clarify how the Biomass plants apply to the PUD. Both Director Hillstrom and Aguera agreed that a workshop on Biomass would be helpful. Director Laliotis attended the second candidate forum-on Tuesday, September 14. Director Hemig and Josh Susman were also present. 1 Minutes: September 15, 2010 CONSENT CALENDAR CONSIDERATION OF RESCHEDULING THE OCTOBER 6, 2010 REGULAR BOARD MEETING This item involves rescheduling the October 6th regular Board meeting. CONSIDERATION OF THE AWARD OF A CONTRACT TO CASTROVILLA INC. FOR THE 2010 COMMERCIAL REFRIGERATION RETROFIT PROGRAM This item involves the 2010 Commercial Refrigeration Retrofit Program Contract. Director Hillstrom moved, and Director Laliotis seconded, that the Board approve the consent calendar. ROLL CALL: All Directors aye, by voice vote. SO MOVED ACTION ITEMS CONSIDERATION OF A RESOLUTION AND DOCUMENTS TO ACCEPT THE CALPERS EMPLOYEE-FUNDED 2.7% @ 55 PLAN AMENDMENT This item involves the final actions required to amend the CalPERS Plan. Director Hemig moved, and Director Hillstrom seconded, that the Board authorize the Board President to sign the Amendment to Contract between Board of Administration, California Public Employees' Retirement System; and adopt the resolution authorizing an Amendment to the Con- tract. ROLL CALL: All Directors aye, by voice vote. SO MOVED DISCUSSION AND POSSIBLE ACTION REGARDING A POOLING APPENDIX WITH CITY OF MURRAY FOR THE SALT LAKE LANDFILL GAS GENERATION This item involves consideration of a UAMPS Pooling Appendix for the Salt Lake Landfill Gas Generation from the City of Murray Utah. Item pulled from the agenda. WORKSHOP DISCUSSION ABOUT 2011 ELECTRIC AND WATER RATES This item involves a discussion of rates. Bob Mescher gave a presentation: • FY10 and FY11 Budget adopted November 18, 2009 o Electric rates increased 0% FY10 and 3% FY11 o Water rates increased 1.75% FY10 and 1.75% FY11 o Prop 218 process completed o Water rates effective January 2010 and January 2011 • New Information: Electric Utility o Recent Board actions lowered purchased power costs beginning FY12 o One-time $300,000 UAMPS credit from prior years o Debt retirement in FY12 o 3% electric rate increase is not required • New Information: Water Utility o 20% overall reduction in water production 2 Minutes: September 15, 2010 o Leak elimination o Conservation aspect of residential meters o Major Short-Term Capital Projects o Residential meter project o Supervisory Control and Data Acquisition (SCADA) system replacement project o Adopted 1.75% water rate increase is still required in FY11 • Fiscal Impact o To Electric Utility FY11 Budget ■ <$600,000> Eliminate FY11 3% electric rate increase ■ $300,000 One-time refund from UAMPS ■ $300,000 Reduce FY11 budgeted contribution to Electric Rate Reserve ■ $ 0 Net Change • Next Steps o October 5th Board Meeting ■ Eliminate the FY11 3% electric rate increase ■ Amend the FY11 Budget to reduce the contribution to the Electric Rate Reserve Public input: • Great news- no electric rate increase Board discussion: • Water rates are already scheduled to go up 1.75% in January 2011- need to complete the water meter project • What are the fund sources for the water meter project—surcharge, meter reserve and what percent comes from funded capital • Excited about electric rates and conservation must have something to do with it, plus ef- forts of the District and customers • Always hoped to have an opportunity to retire the debt and believe we can hold electric rates flat again in the future • Will be good to have debt retired and power contracts locked in place • Shows electric department is spending money where they need to and finding ways to offset • Water has had a 20% reduction- millions of gallons a day- what does this mean to facilities fees and build out • Water meter project- hasn't the District saved $2 million off the original estimate • Can we shorten the water meter surcharge • Is the water rate shown on the PUD billing for 2010 or 2011 • With the electric rate not changing, customers will not be more thoughtful about conservation- next time want to see more of a block rate to promote conservation • With the debt service gone in 2012, how will these funds be allocated- is there something that says the District will no longer be expending $3 million per year on debt service • How are the last 10% of the meters to be installed are the more difficult ones • Good work and good news about the rates • Board is in agreement to eliminate the 3% electric rate increase for FY11 and reduce the contribution to the Electric Reserve 3 Minutes: September 15, 2010 ROUTINE BUSINESS ITEMS TREASURER REPORT: AUGUST, 2010 Approval of the report: Director Hemig moved, and Director Aguera seconded, that the Board approve the treasurer's report for the month ended August 31, 2010. ROLL CALL: All Directors, aye. SO MOVED. Approval of disbursements: Director Aguera moved, and Director Hillstrom seconded, that the Board approve the August 2010 disbursements report. ROLL CALL: All Directors, aye. SO MOVED. APPROVAL OF MINUTES FOR JULY 21, AUGUST 4, AND SEPTEMBER 1, 2010 Director Hemig moved, and Director Laliotis seconded, that the Board approve the minutes of July 21, August 4, and September 1, 2010. ROLL CALL: All Directors, aye. SO MOVED CLOSED SESSION CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9, SUBDIVI- SION (B), POTENTIAL LITIGATION, ONE CASE Item pulled from the agenda. PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION 54957 (E): GENERAL MANAGER PERFORMANCE PLAN REVIEW RETURN TO OPEN SESSION Report from Closed Session There was no reportable action. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 7:15 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jeff Bender, President Prepared by. Barbara Cahill, Deputy District Clerk 4 Minutes: September 15, 2010 SPECIAL MEETING October 5, 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 per- petually 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, Ron Hemig, John Hillstrom and Tony Lalio- tis were present. PLEDGE OF ALLEGIANCE Director Tony Laliotis 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 There was no public input. DIRECTOR UPDATE Director Laliotis said the Olympic Heights Block Party was fun, a lot of public participation, information on programs and light bulb give aways. It was a success. Director Hemig added that the Block Party was amazing, had a lot of energy and the interest was high. He has two meetings to report. One was the NCPA Conference from September 22 to 24. The agenda related to regulatory concerns, issues and unknowns. One of the items was implementing the 33% RPS and where electric utilities will go in the future. So many regulations are being contemplated and or are already implemented. There were a few good quotes: "Regulations never lower costs"; "Look at everything through the lens of a customer" and "Electric costs do matter"- a speaker suggested talking to people who are having a hard time paying bill when they do not have the money. The other meeting was MUFA (Municipal Utility Financing Authority) where there was a discussion about the Horse Butte Idaho Wind project. This financing authority could assist in the Horse Butte bond financing. Director Aguera stated he just got a water meter and wanted to know when he would start getting a comparative bill. 1 Minutes: October 5, 2010 President Bender wanted to thank the Directors for moving the meeting to October 5 because he will be attending a LAFCo meeting out of the area. ACTION ITEMS CONSIDERATION OF AN OPTIONAL HIGH DEDUCTIBLE HEALTH PLAN AND HEALTH SAVINGS ACCOUNTS This item involves an employee option for a health plan with higher deductibles along with a health savings account. Director Hillstrom moved, and Director Laliotis seconded, that the Board authorize staff to of- fer the NRECA High Deductible Health Plan (HDHP) and Health Savings Account (HAS) op- tion to employees, with 70% of the cost difference contributed to the participating employee's HAS. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF FY11 BUDGET REVISIONS a) Eliminate the proposed 3% Electric Rate increase for FY11 Budget. b) Amend the FY11 Budget to reduce the contribution to the Electric Rate Reserves by $3009000. Director Laliotis moved, and Director Aguera seconded, that the Board eliminate the pro- posed 3% electric rate increase in the FY11 Budget; and amend the FY11 Budget to reduce the contribution to the Electric Rate Reserves by $300,000. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF INCREASING THE CHANGE ORDER AMOUNT FOR THE DIS- TRICT RE-ROOF Project This item involves unforeseen changes in the District Re- Roof Project. Director Hillstrom moved, and Director Hemig seconded, that the Board increase the change order authorization from $38,316 to $48,316 for a new contract amount not to exceed $431,477; and authorize the transfer of funds from the Electric and Water Reserve Funds to the Electric General Fund for the new contract amount ROLL CALL: All Directors aye, by voice vote. SO MOVED WORKSHOP 2010 LED HOLIDAY LIGHT EXCHANGE PROGRAM 2010 LED Holiday Light Exchange Program Preparation. Steven Poncelet gave a presentation: • District seeks innovative and cost-effective ways to deliver programs and educate cus- tomers • District began LED Holiday Light Exchange in 2007 and the rogram has been very successful o Flagship program o Cost-effective o Strong customer participation (5% -4-weeks) o All customers come into District's main office ■ Opportunity to promote other programs and services ■ Builds our relationship with the customer 2 Minutes: October 5, 2010 o Strong educational component • Board awarded contracts for 2010 LED Holiday Light Exchange Program at Septem- ber 1 St meeting for the purchase of Pine Cone and Mini LED holiday light strands • Targeting to serve —740 customers which is about 5.5% of customer base • 2010 LED Holiday Light Exchange Program will begin on Monday, November 29th and run through the holidays • Can exchange up to three strands of incandescent holiday lights • District will promote other energy and water conservation programs o Residential Green Partners (give-a-way of 6 types of CFL's) o New Residential Energy Survey (RES) Program o Energy Savings Program (ESP) o New Toilet Rebate Program • Marketing and Outreach: decorate main lobby, bill stuffier, advertisements, chamber e- mail blast and press releases Public input: • Have you checked the country of origin for the bulbs you are purchasing- we should try to patronize America • Have you checked into the solar LED lights Board discussion: • What is the total penetration since the program began • Best customer involvement and return on investment- EMV analysis- the more they are used, the more that is saved • Should this program have more dollars invested • Like the example of the meter for the two different styles of lights- can this also be translated into a daily cost • Do you keep track whether people are full time or part time residents- 5% of full time would mean a bigger penetration • What is done with the old lights • Good program- very supportive • How do you prevent repeat customers or double dipping • Would it be possible to write a spec that would lean more toward American made product ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 7:03 PM/. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jeff Bender, President Prepared by Barbara Cahill, Deputy District Clerk 3 Minutes: October 5, 2010