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Home My WebLink About13 Meeting Minutes Agenda .lt. em # 13 Public Utility District MINUTES To: Board of Directors From: Barbara Cahill Date: September 15, 2010 Minutes for the Meeting Dates Approve Minutes of July 21, August 4 and September 1, 2010 REGULAR MEETING July 21, 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 6:02 PM in the TDPUD Board room by Vice-President Hillstrom. ROLL CALL: Directors Ron Hemig, John Hillstrom and Tony Laliotis were present. Directors Joe Aguera and Jeff Bender were absent. Director John Hillstrom was acting President due to Director Bender's absence. PLEDGE OF ALLEGIANCE Director Ron Hemig led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT: Neil Kaufman, Mary Chapman, Bob Mescher, Kathy Neus, Nancy Waters, Rosana Matlock, Michael Holley, and Barbara Cahill CONSULTANTS PRESENT: None OTHERS PRESENT: Juanita Schneider and Dan Warren CHANGES TO THE AGENDA General Manager Holley asked to remove Agenda Item No. 15, Closed Session: Closed Session: Pursuant to Section 54957.6 of the Government Code; Conference with Labor Negotiator, Agency designated representative and Employee organization, IBEW 1245. PUBLIC INPUT Juanita Schneider wanted to thank the TDPUD for a lovely affair for the Pat Sutton Conservation Garden. DIRECTOR UPDATE Director Hemig pulled his papers for the PUD Board for another 4-year term. One objective is to see significant initiatives at the PUD to fruition: meter project, Renewable Portfolio Standards, conservation, and pipeline replacement. Other objectives are to keep rates for 2011 where they are and to take on the role of resident historian with the passing away of Pat Sutton. What happened in the past is significant to moving forward- kind of like a gatekeeper. Bob Sutton is supportive of Director Hemig taking over this role. Director Laliotis agreed the Conservation Garden Grand Opening was a great event- the product speaks for itself. He has also pulled papers for the November election. John Hillstrom heard good things about the Pat Sutton Garden event and has also heard all the construction projects are going great- PUD is a well oiled machine. 1 Minutes: July 21, 2010 CONSENT CALENDAR CONSIDERATION OF THE AWARD OF A CONTRACT TO PURCHASE CFL'S This item involves awarding a contract to purchase the 'Big 6' Compact Fluorescent Lights. Director Hemig moved, and Director Laliotis seconded, that the Board approve the consent calendar. ROLL CALL: Directors Aguera and Bender, absent; All other Directors aye, by voice vote. SO MOVED ACTION ITEMS CONSIDERATION OF A RESOLUTION ACCEPTING FINAL COMPLETION OF THE AIRPORT WATER TANK REPAIR PROJECT AND DECLARING AN END TO THE EMERGENCY This item involves approving the closeout of the Airport Water Tank Repair Project, filing the notice of completion and declaring an end to the emergency. Director Laliotis moved, and Director Hemig seconded, that the Board declare the emergency action related to the repair of the Airport Water Tank complete; and adopt the resolution accepting the Airport Water Tank repair project as complete and authorize staff to file the Notice of Completion. ROLL CALL: Directors Aguera and Bender, absent; All other Directors aye, by voice vote. SO MOVED CONSIDERATION OF A MEMORANDUM OF AGREEMENT FOR A REGIONAL AQUIFER STUDY This item involves an agreement with PCWA ( lead agency), Northstar Community Services District and TDPUD to conduct a ground water study. Director Hemig moved, and Director Laliotis seconded, that the Board approve the MOA for development of the Martis Valley Groundwater Management Plan and Groundwater Model with Placer County Water Agency and Northstar Community Services District. ROLL CALL: Directors Aguera and Bender, absent; All other Directors aye, by voice vote. SO MOVED MID-YEAR BUDGET REVIEW OF THE DISTRICT'S FINANCIAL PERFORMANCE AND CONSIDERATION OF RELATED TRANSFERS OF FUNDS This item concerns providing the Board of Directors with a review of the financial activity and performance of the District's operations through June 2010 and consideration of related transfer of funds. Director Laliotis moved, and Director Hemig seconded, that the Board authorize the transfer of $159,650 from the Electric General Fund to the Electric Vehicle Reserve; and authorize the transfer of $144,200 from the Water General Fund to the Water Vehicle Reserve. ROLL CALL: Directors Aguera and Bender, absent; All other Directors aye, by voice vote. SO MOVED CONSIDERATION OF EMPLOYEE-FUNDED AMENDMENT WITH CALPERS This item concerns an employee-funded amendment to the CalPERS formula with a Resolution of Intention to Amend. Director Hemig moved, and Director Laliotis seconded, that the Board adopt a Resolution of Intent to approve an Amendment to the Contract between the Board of Administration of California Public Employees' Retirement System and the Board of Directors of the Truckee Donner Public Utility to implement the 2.7% @ 55 retirement formula for Miscellaneous Employees. ROLL CALL: Directors Aguera and Bender, absent; All other Directors aye, by voice vote. SO MOVED 2 Minutes: July 21, 2010 WORKSHOP WATER METER PROJECT PROGRESS REPORT & WATER USAGE TRENDS This item involves a discussion about the water meter project progress and water usage trends. Neil Kaufman gave a presentation: • Background / History o AB 2572 requires that the District begin reading all water meters installed since 1992 and commence billing on a volumetric basis by January 2010 o AB 2572 also requires that all connections be equipped with water meters and billed on a volumetric basis by January 1, 2025 o In Summer of 2008, the District issued a request for proposals to provide an automated meter reading system: five proposals received o Contract for Pilot Program (Phase 1) awarded to Measurement Control Systems (MCS) for fixed base system using utilizing meters manufactured by Neptune and radios manufactured by Aclara o In May of 2009, the Board awarded a contract to MCS for Phase 2 — Installation of about 6,750 meters with completion by June 2010 o In May of 2010, the Board awarded a contract to MCS for Phase 3 — Installation of about 4,735 meters with completion by November 2010 As of July 12: 7,416 meters have been installed o 625 commercial customers o 6,791 residential customers • Goal for November 2010: 11,800 meters o 650 commercial customers 0 11,150 residential customers o About 95 percent of the water system customers • To date there are about 130 locations where a meter could not be installed o Meter box was buried and/or could not be located o Meter box was located under deck, large rocks, tree, fence or other obstruction o No meter box, only a curb stop o Meter box was too small, too deep or too damaged for a safe installation o Excessive groundwater o Broken/inoperable valves o Corrective work by District personnel & outside contractors during 2011 to 2013 • Water Usage Observations & Trends o Overage usage o Commercial vs. residential o Seasonal variations o Large users o Leaks o Multi-unit residential • Overall water usage Average Day Maximum Day Year Demand, mgd Demand, mgd Number of Customers 2003 6.05 11.50 111205 2004 6.64 12.61 111503 2005 6.11 12.66 11,917 3 Minutes: July 21, 2010 2006 6.50 13.01 12,271 2007 6.67 14.84 12,442 2008 6.29 12.65 12,555 2009 5.63 12.71 12,586 • Water usage by customer class Total Sales, Commercial Commercial Residential Residential Year mgd Sales, mgd Sales, % Sales, mgd Sales, % 2003 6.05 0.95 15.7 5.10 84.3 2004 6.64 1.37 20.6 5.27 79.4 2005 6.11 1.48 24.2 4.63 75.8 2006 6.50 1.55 23.8 4.95 76.2 2007 6.67 1.89 28.3 4.78 71.7 2008 6.29 1.68 26.7 4.61 73.3 2009 5.63 1.56 27.7 4.07 72.3 • Seasonal variation - residential customers Area Current Meter Count Jan Usage, gals/day Jun Usage, gals/day Armstrong 74 99 196 Coyote Run 20 93 80 Donner Lake 1,178 99 188 Downtown 60 59 239 Gateway 223 80 180 Glenshire 606 144 778 Gray's Crossing 46 66 244 Hirschdale 1 90 139 Martiswoods 29 112 773 Old Greenwood 148 88 334 Pine Forest 28 106 398 Pinyon Creek 40 21 36 Ponderosa Palisades 124 113 737 Prosser Heights 25 564 1,204 Prosser Lakeview 247 104 377 4 Minutes: July 21, 2010 Sierra Meadows 249 113 507 Southside 150 104 219 Spring Creek 18 103 122 Tahoe Donner 3,427 78 175 Winter Creek 66 73 124 Total 65791 93 278 • Ten lar est residential customers—January 2010 5,131 on AMR system) Rank Location Usage, gals/day Notes 1 Prosser Heights 6,224 Constant Leak 2 Glenshire 4,399 Constant Leak from Jan 4 Jan 25 3 Prosser Heights 2,893 Constant Leak 4 Prosser Heights 1,721 Constant Leak 5 Glenshire 1,647 Intermittent Leak 6 Tahoe Donner 1,581 Constant Leak 7 Tahoe Donner 1,535 Constant Leak 8 Glenshire 1,312 Constant Leak 9 Donner Lake 15207 Constant Leak from Jan 20 Jan 23 10 Sierra Meadows 17173 Constant Leak • Ten largest residential customers—June 2010 6,791 on AMR system) Rank Location Usage,gals/day Notes 1 Prosser Heights 9,984 Constant Leak 2 Prosser Lakeview 9,677 Constant Leak 3 Prosser Heights 8,178 Constant Leak 4 Tahoe Donner 6,699 Constant Leak 5 Glenshire 67445 Constant Leak 6 Donner Lake 6,292 Constant Leak from Jun 15 to Jun 25 7 Sierra Meadows 4,969 Constant Leak from Jun 1 to Jun 22 8 Ponderosa Palisades 4,446 Intermittent Leak 9 Glenshire 47212 No Leak 10 Glenshire 4,042 Constant Leak 5 Minutes: July 21, 2010 • Ten largest commercial customers-June 2010- otable water s stem 538 on AMR system) Rank Customer Type Usage, gals/day 1 Park 66,367 2 School 35,869 3 Mobile Home Park 321777 4 Cemetery 29,833 5 School 22,882 6 HOA Common Property 20,906 7 Park 16,104 8 School 14,071 9 Apartment Building 12,730 10 Commercial Business 12,001 • AMR system is equipped with automated leak detection capabilities 0 755 customers appear to have a leak o Leaks range from 10 gallons day up to 10,000 gallons per day o Total estimated customer loss is 500,000 to 1 million gallons per day o Main areas of leakage o Improper operation of shutoff and stop & drain valves o Broken irrigation systems o No cost signal for customers with leaks due to transition period • Unforeseen issues with multi-unit residential buildings o Multiple meters feeding a single residential structure o Developer/builder often provided erroneous information regarding which meter serves which unit o Resolution requires lengthy telephone conversations and/or field verification o Verification effort will continue into 2011 • Overall Project Cost MCS District Costs Outside Contracts Total Phase 1 $232,000 $38,000 $0 $270,000 Phase 2 - 2009 $1,545,000 $296,000 $0 $1,841,000 Phase 2 -2010 $655,000 $205,000 $0 $860,000 Phase 3 - 2010 $11475,000 $185,000 $0 $1,660,000 Phase 4- 2011 $112,500 $112,500 $900,000 $1,125,000 Phase 4 - 2012 $112,500 $112,500 $900,000 $17125,000 Phase 4-2013 $50,000 $50,000 $400,000 $500,000 Total $41182,000 $999,000 $21200,000 $7,381,000* *Original project cost estimate was $10,000,000 6 Minutes: July 21, 2010 Public comment: • Is there a reason meter boxes were not installed- who will be installing them • A plumber came to my home and found 3 leaks in the self drainers and irrigation • People need to take advantage of the $100 rebate for fixing a leak Have Steven Poncelet contact the Cemetery Board and get water conservation planting done Board discussion: • Why not use non-potable water for the park so don't use regular chlorinated water • People need to know how to properly operate a shut off valve • People may not be able to see a leak • What does it cost to fix a small leak • Some people built where a water meter box is-what happens then • Are there still groundwater problems in some meter box areas • Is the budget of$1 million to fix the problem cases enough What is the success rate with large leak customers- what type of response- good, any? • Can we use water leak detection equipment • What is the protocol, outreach- letters? • It is amazing how much water has been saved between pipeline work and meters- may not have to drill a new well • Going through the same process in Tahoe City: find some trends, stop and drain valves are the offenders, and renters do not know how to operate the valve causing a problem • Does the overall usage and total production in the table include the District leaks • Why did usage decrease in 07/08- was it due to replacement work • Pipeline repair and meters will bring down leaks • Once all meters are installed, we can see the problem areas • Benefits add up for having meters • Need to have a good process for leak identification and notifying customers • Sending letters is burdensome- easier to place a red box on the bill electronically to alert a customer of a leak and give information on how to handle • How are meters identified in multi units • Can people who replace a stop and drain valve apply for the $100 rebate • Any consideration for a leak adjustment policy- say for a blown pipe and usage goes way up- a financial relief • Does District staff shut off a service if they see a problem • Could there be an automated leak notification- also do on line • For shut off- come up with a procedural process- not use District staff and time all the time- use a vendor and a fee • Educate customers about the stop and drain valve- maybe use a bills stuffer • For leak detection, could we provide a list of local plumbers/contractors with leak detection equipment • Great presentation —thanks ROUTINE BUSINESS ITEMS TREASURER REPORT: JUNE 2010 Approval of the report: Director Hemig moved, and Director Laliotis seconded, that the Board approve the treasurer's report for the month ended June 2010. ROLL CALL: Directors Aguera and Bender, absent; All other Directors, aye. SO MOVED. 7 Minutes: July 21, 2010 Approval of disbursements: Director Hemig moved, and Director Laliotis seconded, that the Board approve the June 2010 disbursements report. ROLL CALL: Directors Aguera and Bender, absent; All other Directors, aye. SO MOVED. APPROVAL OF MINUTES FOR JUNE 169 2010 Director Hillstrom moved, and Director Hemig seconded, that the Board approve the minutes of June 16, 2010. ROLL CALL: Directors Aguera and Bender, absent; All other Directors, aye. SO MOVED CLOSED SESSION CLOSED SESSION: PURSUANT TO SECTION 54957.6 OF THE GOVERNMENT CODE; CON- FERENCE WITH LABOR NEGOTIATOR, AGENCY DESIGNATED REPRESENTATIVE AND EMPLOYEE ORGANIZATION, IBEW 1245—item pulled from agenda CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9, SUBDIVISION (B), POTENTIAL LITIGATION, ONE CASE RETURN TO OPEN SESSION Report from Closed Session No reportable action. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 8:15 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT John Hillstrom, Vice-President Prepared by Barbara Cahill, Deputy District Clerk 8 Minutes: July 21, 2010 i k REGULAR MEETING August 4, 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 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 The Board and public said the Pledge of Allegiance. EMPLOYEES PRESENT: Mary Chapman, Steven Poncelet, Kathy Neus, Jim Wilson, Stephen Hollabaugh, Rosana Matlock, and Barbara Cahill. Michael Holley was absent. CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Brian Woody CHANGES TO THE AGENDA There were no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Hemig plans to attend the UAMPS 2010 Member Conference in Susanville from August 15 to 18. There will also be a Municipal Utility Finance Authority (MUFA) meeting on the 17th. Director Aguera also plans to attend the UAMPS conference. CONSENT CALENDAR CONSIDERATION OF THE AWARD OF A CONTRACT TO RETROFIT THE TAHOE DONNER SUBSTATION TRANSFORMERS This item involves considering the award of a contract to retrofit the Tahoe Donner Substation Transformers. 1 Minutes: August 4, 2010 CONSIDERATION OF THE CANCELLATION OF THE BOARD MEETING ON AUGUST 18, 2010 This item involves the cancellation of the second board meeting in August due to Director attendance at a DAMPS Member Conference. Director Aguera moved, and Director Laliotis seconded, that the Board approve the consent calendar. ROLL CALL: Director Bender, absent; All other Directors aye, by voice vote. SO MOVED ACTION ITEMS CONSIDERATION OF A POWER SALES CONTRACT FOR THE UAMPS WIND PROJECT AT HORSE BUTTE This item involves consideration of a contract for the UAMPS Wind Project at Horse Butte, Idaho. Director Laliotis moved, and Director Hemig seconded, that the Board authorize the Board President to sign a resolution authorizing and approving the Horse Butte Wind Project Power Sales Contract with Utah Associated Power Systems; and related matters. ROLL CALL: Director Bender, absent; All other Directors aye, by voice vote. SO MOVED CONSIDERATION OF A POWER SALES CONTRACT WITH CITY OF MURRAY FOR THE LANDFILL GAS GENERATION This item involves consideration of two UAMPS Pooling Appendixes for Landfill Gas Generation from the City of Murray Utah. Director Laliotis moved, and Director Hemig seconded, that the Board approve the UAMPS Pooling Appendix concerning the purchase of Salt Lake Land Fill Gas Generation from Murray City to Truckee Donner PUD for 70% of the output at a cost ranging from $68.30/MWh in 2011 to $77.16/MWh in 2016 in substantially the form provided; with the possible modification to "Other Provisions" concerning • written notice timing ranging from 12 to 18 months • possible UAMPS billing modification to bill out ancillary services • and subject to final approval by the President and General Manager as evidenced by the President's execution of the UAMPS Pooling Appendix. ROLL CALL: Director Bender, absent; All other Directors aye, by voice vote. SO MOVED Director Laliotis moved, and Director Hemig seconded, that the Board approve the UAMPS Pooling Appendix concerning the purchase of TransJordan Land Fill Gas Generation from Murray City to Truckee Donner PUD for 70% of the output at a cost ranging from $68.20/MWh in 2011 to $102.67/MWh in 2023 in substantially the form provided; with the possible modification to "Other Provisions" concerning: • written notice timing ranging from 12 to 18 months • Term, ranging up to a maximum of 15 years with the prices shown • possible UAMPS billing modification to bill out ancillary services • and subject to final approval by the President and General Manager as evidenced by the President's execution of the UAMPS Pooling Appendix. ROLL CALL: Director Bender, absent; All other Directors aye, by voice vote. SO MOVED 2 Minutes: August 4, 2010 CONSIDERATION OF A UAMPS "LOCK-IN" PLANNED POOL APPENDIX FOR THE PURCHASE OF A MARKET PURCHASE STARTING APRIL 1,2012 TO MARCH 31, 2017 This item involves consideration of a DAMPS Lock-In Planned Pool Appendix. UAMPS will check the market for a firm product priced under $56.00/MWH for deliveries starting April 1, 2012 to March 31, 2017. Director Aguera moved, and Director Hemig seconded, that the Board approve the UAMPS "Lock-In" Planned Pool Appendix and corresponding confirmation for the purchase of 4 MW summer and 10 MW winter of firm capacity and energy not to exceed the price of $56/MWh from April 1, 2012 thru March 31, 2017. ROLL CALL: Director Bender, absent; All other Directors aye, by voice vote. SO MOVED CONSIDERATION OF A RESOLUTION RELATED TO POTENTIAL FORECLOSURES IN THE COMMUNITY FACILITIES DISTRICTS This item involves consideration of a resolution which orders Judicial Foreclosure of Delinquent Special Taxes Pursuant to the Mello-Roos Community Facilities Act of 1982 and Authorizes Retention of Special Counsel. Counsel Steve Gross recused himself because Grays Crossing LLC may be an affiliate or sub of East West Partners which Porter Simon represents. Director Hemig moved, and Director Laliotis seconded, that the Board adopt the foreclosure resolution authorizing staff and Sherman & Feller to proceed with the foreclosure process on the delinquent parcels in both Old Greenwood and Gray's Crossing Community Facilities Districts. ROLL CALL: Director Bender, absent; All other Directors aye, by voice vote. SO MOVED CONSIDERATION OF WRITE-OFF OF DELINQUENT ACCOUNTS RECEIVABLE This action requests the Board of Directors to approve the current semi-annual write-off of delinquent account balances for FY10. Director Laliotis moved, and Director Hemig seconded, that the Board approve the write-off list in the amount of$33,214.18 for uncollectible accounts that closed prior to December 31, 2009. ROLL CALL: Director Bender, absent; All other Directors aye, by voice vote. SO MOVED WORKSHOP REVIEW OF THE 2010 CONSERVATION PROGRAMS This item is a mid-year review of the 2010 Conservation Programs and new program development. Steven Poncelet gave a presentation: • District continues to invest in new conservation programs o Robust stable of existing programs o Target all customer segments o Very successful track-record of cost-effective programs 3 Minutes: August 4, 2010 o Goal remains to maximize ROE for customers o FY10 conservation program plan presented to Board at February 3rd Workshop • Conservation Department on schedule & budget o Projecting a small budget surplus (-5%) o Opportunities exist to accelerate implementation of current strong programs while staying within approved FY10 budget • Residential programs are well subscribed o Appliance rebates continue to be very strong o Lighting and other give-a-way programs are growing • Commercial programs are soft o Commercial lighting/rebate programs continue to be slow o Economic crisis and lack of capital an issue • New energy conservation programs include: o Green Schools Program/Trashion Shows ■ Very cost-effective ■ Educational component and visibility invaluable o Green Challenge completed o New CFL's and LED's o Continuing commercial refrigeration (Keep Your Cool) o Completed Energy Savings Program (ESP) Pilot ■ Introduce Residential Energy Survey (RES) as a stand-alone program • ESP Review o District's first low-income program o Collaborative effort with Family Resource Center and SIGBA o Served 200 customers (October, 2009 - May, 2010) o Internal EM&V shows program is cost-effective ■ <5-years simple payback for direct program costs o FY10-FY11 budget includes funding for ESP ■ Staff is recommending that we continue program at current levels • Residential Energy Survey (RES) Program o Potential new program (start Sept. 2010) o ESP without income qualification and financial incentive o Staff is estimating 2-3 year simple payback for RES • New water conservation programs include: o Launch of Patricia S. Sutton Conservation Garden ■ Including interpretive signage and web-based resource ■ Community response very positive o Water Efficient Toilet Rebate Program ■ Launched in June, 2010 ■ Toilet exchange program coming soon o Customer Water Leak Repair Rebate Program ■ Very sluggish response from customers ■ Working to increase marketing and outreach effort o Commercial Smart Water Controller Program ■ Evaluating water savings of pilot installations ■ Late winter may push additional installations into FY11 4 Minutes: August 4, 2010 There was no public input. Board discussion: • Are the water leak rebates sluggish because not all the meters are in yet; and even customers with meters only have usage information and are not being volumetrically billed yet • When people start getting billed for the extra water from leaks, they may take an interest • Can the leak rebate process be more cost effective- deal more with the top 10 to 20% large leaks and go after these customers- tell them what the leak will cost them • Good job-I am jealous of the Budget and resources- wish Tahoe City could have do the same • Would like to see the numbers of appliance rebates, CFL's, etc- the data- the impact of the programs to the community • With leaks it is difficult to understand the demographics of people- 40 to 60% of people don't care • Once we go to billing for usage, that will change things • Staff should launch the RES program • Want a Return on Investment formula • Want to see EMV report for 2009 • Want to see some quantifications • Could include information on quantities in the yearend report • What happened to the exit light program • RES is a good idea • How many people used the ESP program- it should be continued The Board all agreed that the Energy Savings Program (ESP) should continue, and the Residential Energy Survey (RES) Program should begin. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 8:16 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT John Hillstrom, Vice-President Prepared by Barbara Cahill, Deputy District Clerk 5 Minutes: August 4, 2010 REGULAR MEETING September 1, 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 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 6:07 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 Tony Laliotis led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT: Kathy Neus, Rosana Matlock, Stephen Hollabaugh, Steve Trevino, Steven Poncelet, Nancy Waters, Michael Holley and Barbara Cahill CONSULTANTS PRESENT: Steve Gross and Steve Itelson OTHERS PRESENT: Juanita Schneider, Dan Warren, Sara Trebilcock, Josh Susman, Adelle Gonzalez, Lilly Hatch, Lynn Larson, Katlin Johnson, Bill McGllashan, Joel Erickson and two members of the public. CHANGES TO THE AGENDA There were no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Hemig reported that he attended the UAMPS conference in Susanville and also attended a Municipal Finance Authority meeting. We are working on the idea and concept of making a large prepaid gas purchase for our Payson Plant. Learned couple things — scope of this effort is quite large- possible we could look at prepaid purchase in the $200M or more range- pro rata shared with other UAMPS polling group. The potential is a savings in the range of 10 to 20%. Conditions have to be right and opportunity needs to be there. Separately, in case you saw the news item about Loyalton Biomass closing and you think the PUD should be able to jump in there; it does not work that way. There is a long term contract with Sierra Pacific/NV Energy. President Bender stated he would like to attend the California LAFCo meeting in early October, but there is a conflict with the first TDPUD Board meeting on October 6. He would 1 Minutes: September 1, 2010 like to request moving the meeting to a different day. President Bender wanted to note that the roof project is nearly done with the added insulation. Earlier this year an energy audit was performed on the headquarters building. President Bender would like to request a workshop in December to look at other possible energy saving measures we can do on this building. Director Hemig asked to pull agenda item No. 7, "Appoint General Manager as Negotiator for Sale of District Real Property" from the Consent Calendar. The Board meeting about the McGlashan property was in the past and the new directors may not recall the discussions. Pat Sutton always held this property near and dear, and opposed the PUD doing anything with the land. We need to.take all this into consideration. CONSENT CALENDAR CONSIDERATION OF AWARDING A CONTRACT FOR THE PURCHASE LED HOLIDAY LIGHTS This item involves the annual purchase of LED Holiday Lights. Director Hillstrom 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 APPOINTING THE GENERAL MANAGER AS NEGOTIATOR FOR SALE OF DISTRICT REAL PROPERTY The appointment of a District Negotiator as it relates to the Sale of District Real Property. Counsel Steve Gross recused himself because Porter Simon does legal work with a counter party of this transaction. Public input: • Future preservation of this Truckee resource • The interest goes back a long time: historic, cultural, biologic • Potential for open space and trails • Fuel reduction is needed • There are a lot of unique plants • Exciting to know the PUD will protect the property for future benefit of the community • Excited of the possibility that this property will be preserved • Property of great historic value • Six years ago, a TDPUD meeting was held on sight to hike through this area • The property is within the Town of Truckee boundary • Has such an assembly of plants- with some plants the only ones around now • Happy and excited • Area has such a biologic richness, historic aspects, ideal to tie in trails and preserve for the people of Truckee • Diverse area, appreciate the uniqueness of the parcel, great place • Two concerns: transferring ownership to private entity- not clear what happens in the future- important to consider selling with a conservation easement- preserve in 2 Minutes: September 1, 2010 perpetuity and not exploit and second, trail from Tahoe Donner as a part of the Rim Trail- allow people to enjoy. • Any time a public agency can join with another entity to preserve open space- that is a good thing- move in the direction to preserve for all of us • Tahoe Donner are good stewards • Have same concerns- make a part of the sale a conservation easement or make X zone so the intent of conservation is not lost in future generations Director Hemig moved, and Director Aguera seconded, that the Board appoint the General Manager as the District's negotiator concerning Nevada County APN 18-010-10, 10750 Bermgarten Road. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF AWARDING CONTRACTS FOR THE ENERGY SURVEY PRO- GRAM AND THE RESIDENTIAL ENERGY SURVEY PROGRAM This item involves: a) FRC Renewal Contract for the ESP Program b) SIGBA Renewal Contract for the ESP Program and new Residential Energy Survey Program General Manager Michael Holley recused himself because he is on the board of the Family Resource Center. He checked with legal counsel and there is no direct conflict, but will recuse just in case. Director Laliotis moved, and Director Aguera seconded, that the Board award a contract to Family Resource Center (FRC) for an amount not to exceed $14,500 and award a contract to Sierra Green Building Association (SIGBA) for an amount not to exceed $30,000. ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF AN AWARD OF CONTRACT FOR VEHICLE PURCHASE & SURPLUS OF EXISTING VEHICLE This item involves considering an award of contract for a electric line truck purchase and the surplus of an existing vehicle. Director Hillstrom moved, and Director Aguera seconded, that the Board: • award the purchase of the Altec Model # D3055-A Line Truck in the amount of $312,175.22 to Altec Industries, Inc. • declare Line Truck, Unit #10, as surplus • authorize transfer of up to $312,175.22 from the Electric Department Vehicle Replacement Fund to the Electric Department General Fund ROLL CALL: All Directors aye, by voice vote. SO MOVED CONSIDERATION OF A REVISION TO THE POWER SALES CONTRACT FOR THE UAMPS WIND PROJECT AT HORSE BUTTE This item involves revision of the entitlement share for the UAMPS Wind Project at Horse Butte, Idaho. Director Laliotis moved, and Director Aguera seconded, that the Board approve resolution (2010-XX) authorizing and approving the increased subscription to Horse Butte Wind Project Power Sales Contract to 15,000 kW with Utah Associated Power Systems and related matters in substantially the form attached. ROLL CALL: All Directors aye, by voice vote. SO MOVED 3 Minutes: September 1, 2010 WORKSHOPS CALPERS- ACTUARIAL PRESENTATION REQUIRED FOR THE EMPLOYEE-FUNDED 2.7% @ 55 PLAN AMENDMENT This item is a Government Code requirement explain- ing future costs of this contract amendment Nancy Waters started a presentation and consultant Steve Itelson participated: • Background / History o District contracts with California Public Employees' Retirement System (CaIPERS) for employee's retirement o Employees voted in favor of increasing formula o Employees will pay all increased costs o Board approved the CalPERS Resolution of Intent to amend contract at the July 21 st meeting • New Information o Government Code requires a Board presentation by an Actuary to explain impact of amendment on future costs o Mr. Steven Itelson, an independent actuarial consultant will make a presentation tonight on the proposed amendment • CalPERS Valuation Results o Current contribution rates: TDPUD 17.086%, Employees 7.0% o Employees actual new contribution rate: TDPUD 17.086%, Employees 15.908% o AAL (present value of past service benefits): Increase from $15 million to $18 mil- lion • CalPERS Assumption Changes o Retirees live longer o Higher salary increases, earlier retirement o Estimated typical cost increases ■ - 2.7% @ 55 plans - 1.1% to 1.7% ■ - 2% @ 60 plans - 0.4% o In January, cost difference will rise 0.7% to 1.3% • CalPERS required steps for contract amendment o Resolution of Intent— July 21 st o Employee Vote — completed in July o Actuarial Presentation —tonight's workshop o Adoption of final resolution — September 15th meeting • Fiscal Impact o No additional cost to the District for the plan amendment o Employees are paying additional costs o CalPERS assumption increases are built into FY11 budget Public input: • How many PUD employees will be eligible for the new plan • Unfunded liability- as employees start to retire, won't this be an increase to the em- ployees staying or the new hires- new employees will bear the burden • There should be a discussion about Gov Code 20903 which allows the District to give a 2 year service credit at the point of retirement • Look at all extended consequences-future employees pay for this 4 Minutes: September 1, 2010 How long does it take before an employee is vested to be in the retirement plan Board discussion: • What percent do the employer and employee usually pay other plans • Is it rare for a plan to have the employer and employee pay 50% each • Is the 50/50 split a concern • The 50/50 split put the PUD in a unique situation • Mostly positive consequences • Some people can now retire and PUD could get younger people with skills • Net zero affect to the District financials • What would a person get at 5 years if they retire • Would future employees be scared off by the pay back amount DISCUSSION OF THE NEIGHBORHOOD FOCUSED CONSERVATION OUTREACH PROGRAM This item involves collaborating with other local agencies to take agency programs into a targeted neighborhood. 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 impacts • 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, Nevada County, Truckee Tahoe Airport District o Neighborhood specific, one-day event o Each agency brings 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 o Olympic Heights Neighborhood ■ Chosen for pilot event - Size, age of housing, occupancy ■ Floriston Court (between Olympic and Highland) ■ Saturday, September 18th from 9AM-1 PM ■ Direct-mail, door-hangers, and banners ■ Reaching out to neighborhood partners ■ Opportunity for Board to participate • Total direct costs of event estimated at -$2,500 o Shared between District, Town of Truckee, and Nevada County o Sufficient funds exist within the FY10 budget for this item 5 Minutes: September 1, 2010 Public input: • Out of the box thinking • Amazed at the number of people who do not know about PUD programs • Great venue • Interested in feed back Board discussion: • Brilliant idea- both ancillary and direct benefits • Could affect 40 to 50 households • Impressed that the PUD got the County and Town involved • If this is a wild success, could another one be scheduled for this year • Good thing- one neighborhood at a time • Olympic Heights is an established neighborhood with a lot of full time residents • Great value • Even with all the mainstream marketing, people are still unaware of the programs • Good way to touch a demographic • There is a creative environment in the PUD- great way to get people engaged and informed Counsel Gross reminded that if Board members attend the event, they should have no Board discussions- remember the Brown Act. ROUTINE BUSINESS Treasurer Report: July, 2010 Approval of the Treasurer's report through July 31, 2010: Director Aguera moved, and Director Laliotis seconded, that the Board approve the treasurer's report for the month ended July 31, 2010. ROLL CALL: All Directors, aye. SO MOVED. Approval of the Disbursements for July 2010: Director Aguera moved, and Director Hemig seconded, that the Board approve the July 2010 disbursements report. ROLL CALL: All Directors, aye. SO MOVED. CLOSED SESSION CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO SECTION 54956.8 OF THE GOVERNMENT CODE. PROPERTY; MCGLASHAN SPRINGS PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION 54957 (E): GENERAL MANAGER PERFORMANCE PLAN REVIEW CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9(C), DECISION ON WHETHER TO INITIATE LITIGATION, TWO CASES. 6 Minutes: September 1, 2010 RETURN TO OPEN SESSION Report from Closed Session CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO SECTION 54956.8 OF THE GOVERNMENT CODE. PROPERTY; MCGLASHAN SPRINGS PUBLIC EMPLOYEE PERFORMANCE No reportable action. EVALUATION - GOVERNMENT CODE SECTION 54957 (E): GENERAL MANAGER PERFORMANCE PLAN REVIEW No reportable action. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9(C), DECISION ON WHETHER TO INITIATE LITIGATION, TWO CASES. By unanimous roll call vote, the Board approved a motion to authorize General Counsel to initiate litigation in the form of interpleader actions in two actions involving the 2009 Pipeline Replacement project: • one case involving the District's prime contractor Hunt's Excavation and its creditors • and the other case involving the District's prime contractor Cruz Excavating/Zephyr Companies and it creditors. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 11:10 PM. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Jeff Bender, President Prepared by Barbara Cahill, Deputy District Clerk 7 Minutes: September 1, 2010