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Home My WebLink About14 Meeting Minutes Agenda Item # 14 Public Utility District MINUTES To: Board of Directors From: Barbara Cahill Date: July 21, 2010 Minutes for the Meeting Dates Approve Minutes: June 16, 2010 a S REGULAR MEETING June 16, 2010 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 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 6:00 PM in the TDPUD Board room by President Bender. ROLL CALL: Directors Joe Aguera, Jeff Bender, Ron Hemig and John Hillstrom Tony Laliotis were present. Director Tony Laliotis was absent. PLEDGE OF ALLEGIANCE EMPLOYEES PRESENT: Mary Chapman, Steven Poncelet, Kathy Neus, Mark Thomas, Nancy Waters, Neil Kaufman, Bob Mescher, Michael Holley and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Juanita Schneider CHANGES TO THE AGENDA General Manager Michael Holley stated there are no changes. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Bender stated he will be absent at the July 21, 2010 regular Board meeting. CONSENT CALENDAR CONSIDERATION OF CANCELLING THE REGULAR BOARD MEETING ON JULY 7, 2010 This item involves cancellation of the regular Board meeting on July 7, 2010 due to a lack of District business. CONSIDERATION OF CONTINUING THE AIRPORT WATER TANK EMERGENCY This item involves continuing the Airport Water Tank emergency originally declared on May 5, 2010. CONSIDERATION OF RESOLUTIONS FOR THE DONNER LAKE ASSESSMENT DISTRICT This item relates to the resolutions setting the assessment amount under the terms of the Donner Lake Assessment District Number 00-1 and authorizing Nevada and Placer Counties to collect the assessments on the County tax rolls. 1 Minutes: June 16, 2010 CONSIDERATION OF RESOLUTIONS FOR SPECIAL TAX: OLD GREENWOOD AND GRAY'S CROSSING COMMUNITIES FACILITIES DISTRICTS This item concerns requesting Nevada County to collect the special assessments for the Old Greenwood and Gray's Crossing Community Facilities Districts on the Nevada County tax rolls. Director Hemig moved, and Director Aguera seconded, that the Board approve the consent calendar. ROLL CALL: Director Laliotis, absent; All other Directors aye, by voice vote. SO MOVED ACTION ITEMS CONSIDERATION OF THE AWARD OF THE 2010-2011 WORKERS' COMPENSATION INSURANCE This item involves the award of the 2010-2011 Workers' Compensation Insurance Renewal. Director Hillstrom moved, and Director Aguera seconded, that the Board Approve the renewal of the District's workers' compensation insurance policy for the period beginning July 1, 2010 and ending June 1, 2011 with United States Fire Insurance Company for an estimated amount of$214,817 ROLL CALL: Director Laliotis, absent; All other Directors aye, by voice vote. SO MOVED WORKSHOPS DISCUSSION ABOUT THE UPCOMING PATRICIA S. SUTTON CONSERVATION GARDEN OPENING AND DEDICATION This item involves the July 14th Patricia S. Sutton Conservation Garden Opening and Dedication Event. Steven Poncelef gave a presentation: • District continues to invest in water conservation o Water Meter Project is catalyst o Landscape irrigation is key driver of water use • Water-wise demonstration garden is important tool o Helps customers transition landscaping o Hands-on demonstration plus web-based resource • District Board adopted Resolution on February 17t" naming the garden `Patricia S. Sutton Conservation Garden' • Garden opening ceremony: Wednesday, July 14t" from 5:00-7:00 PM o Ceremony to honor Director Sutton and her leadership in promoting water conservation in our community o Event to promote conservation tool o Media and outreach effort o Event open to all TDPUD customers & friends o Interpretive signage and brochure o Native bunch grasses, native & drought tolerant plants, hardscaping, mulch & weed barrier, and water-efficient irrigation o Launch new TDPUD web-based resource: garden plans, full plant and material lists, water-wise gardening information and links to our suppliers 2 Minutes: June 16, 2010 There was no public input. Board discussion: • Need a couple case studies of what customers are using now compared to chang- ing out lawns for something like the water wise garden- like success stories • Where did the idea of the garden originate • Good to dedicate to Pat Sutton- seem appropriate and good timing • Sutton family passed out seeds at her memorial- would it be possible to get some of those and plant in this garden • Looking forward to the dedication in July DISCUSSION OF ELECTRIC RATE STRUCTURE ALTERNATIVES This item involves a discussion by the Board of electric rate structure alternatives including lifeline, low income and commercial electric rates. Consultant Shawn Koorn of HDR gave a presentation: • Assumptions for the presentation o Previously discussed alternative lifeline rate structures for residential customers ■ Discussed the difference between a lifeline and a low income rate structure ■ Policy decision of the Board o Discuss policy decisions related to a lifeline rate and low income programs ■ Not all utilities provide a discount program o Overview of the commercial rate structure review • Policy discussion o Should the District create an approach within the rate or rate structure to subsidize low-income customers? o Should the District utilize a "lifeline" rate structure or create a separate low income rate structure? o How should the District define the target customer groups? o What level of discount should be provided? o How should the discount be applied? o Who should make up the revenue difference for low-income rates? o Other Considerations? o Low income program may be more effective at reaching target customers ■ Higher administrative cost, specific customer, qualification process, difficulty quantifying revenue impacts o Lifeline rate applies to all customers ■ Lower administrative cost, may not reach target customers, no change in revenues o Ability to incorporate third party program ■ Approved external program ■ "Project Share'T'Care" 3 Minutes: June 16, 2010 Rate structure alternatives Present Rate Structure Low Income Discount Alternative A 0 0%) Alternative B (20%) Alternative C (50%) Customer Charge$6.76 $6.76 $6.76 $6.76 Energy Charge-All Use$0.132 $0.134 $0.135 $0.139 Lifeline Rate Structure Alternative A Alternative B Alternative C Customer charge$6.76 $6.76 $6.76 $6.76 Energy Charge-All use $0.132 Tier 1 0-500 $0.117 Tier 0-500 1 $0.113 Winter Tier 2 > 501 $0.151 Tier 2 501-1000 $0.148 Tier 1 0-600 $0.117 Tier 3 >1000 $0.167 Tier 2 >601 $0.151 Summer Tier 1 0-400 $0.117 Tier 2 >401 $0.151 • Commercial characteristics No. Customers Ave Energy (kWh) Ave Demand (kw) Small Commercial 1,100 1,600 N/A Medium Commercial 40 20,000 50 Large Commercial 6 1111000 400 • Commercial rate comparison (per month, kWh, kW) TDPUD SPPCo PG&E PSREC LMUD Small Coml (Ave Rate) Customer Charge $13.10 $12.10 $9.17 $59.05 $10.00 Energy Charge $0.159 $0.126 $0.14-0.19 $0.135 $0.155 Demand Charge N/A N/A N/A $1.95 N/A Medium Coml (Ave Rate) Customer Charge $130.81 $107.86 $122.22 $0.00 $25.00 Energy Charge $0.094 $0.07-0.12 $0.10-0.14 $0.126 $0.135 Demand Charge $12.86 $3.88-8.45 $6.52-10.88 $10.24 $6.00 Large Coml (Ave Rate) Customer Charge $573.78 $569.52 $547.84 Contract $230.00 Facility Charge N/A N/A N/A Contract Energy Charge $0.097 $0.62-0.76 $0.08-0.15 Contract $0.120 Demand Charge $12.29 $2.24-13.70 $1.12-13.05 Contract $7.00 • Commercial electric rate summary o Commercial rates reflect industry standards/norms o Minor rate structure modifications could be implemented to reflect usage characteristics o Demand charges could be reviewed and adjusted o Energy charges could be reviewed and adjusted o Make up of customer group may be driving current rates o Full cost of service analysis would be needed to determine appropriate charges o Allocation of costs based on customer use characteristics o Not necessary at this time, rates are meeting current goals and objectives 4 Minutes: June 16, 2010 There was no public input. Board discussion: • Want to do something for low income- maybe conservation • What about the revenue difference- if charge rate payer more, there may be some mad people • Set up qualification program- but do not know who and how many will qualify • People want a conservation incentive into the tiers • Help low income rate payers- lifeline does not help as older houses use a lot of electricity- lifeline rate will give others a discount because they don't use much electricity • Tiers to all residential- apply to second homeowners and primary • Keep rates as they are today • Additional tiers make more expensive • Apply extra revenue to low income discount or go into reserves • There are enough low income programs around to qualify people • Energy audit would be good for low income — help be efficient • Why treat small commercial different from residential • Having a low income rate is standard in our community- Pacific Bell, Southwest Gas, NV Energy • How do other utilities cover low income • Should be doing a low income rate, but how do we do this without impacting some- one else • Plan for low income rate in 2 years because in mid 2012, the debt from Idacorp COP will be paid off- allocate out of these dollars as not a large amount- looks like about $300,000 to do a low income discount for 10%- basically buy back out of reduced expense amount- way to do something for low income without impacting other rate payers • Lifeline has it own legs- conservation justification • Do not know what power costs will be in the future • Check lifeline rates in a couple years • Like low income discount approach • Go to select group and do ESP measures • Deal with low income block first • Get rid of lifeline • Has HDR completed their contract- do they need to provide more information • How often would low income need to re-qualify • Two significant things occur: end of coal contract in 2012 and end of Idacorp payback- push off doing anything until these are past • Could staff run numbers on tier approach • When we do the budget in 2011 for 2012 and 2013, take another look at low income 5 Minutes: June 16, 2010 ROUTINE BUSINESS TREASURER REPORT: MAY, 2010 Approval of the report: Director Hillstrom moved, and Director Hemig seconded, that the Board approve the treasurer's report for the month ended May 2010 ROLL CALL: Director Laliotis, absent; All other Directors, aye. SO MOVED. Approval of disbursements: Director Aguera moved, and Director Hemig seconded, that the Board approve the May 2010 disbursements report. ROLL CALL: Director Laliotis, absent; All other Directors, aye. SO MOVED. APPROVAL OF MINUTES FOR MAY 19 AND JUNE 212010 Director Hemig moved, and Director Hillstrom seconded, that the Board approve the minutes of May 19 and June 2, 2010. ROLL CALL: Director Laliotis, absent; 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 8:00 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jeff Bender, President Prepared by Barbara Cahill, Deputy District Clerk 6 Minutes: June 16, 2010