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HomeMy WebLinkAboutAgenda Packet 2025_0521 Board of Directors General Manager Jeff Bender TRUCKEE DONNERBrian C. Wright Christa Finn Public Executive Leadership Tony Laliotis Lr 9P91 F Chad J. Reed Courtyney Murrell Jared Carpenter Steve Randall REGULAR BOARD MEETING Mike Swanson 11570 DONNER PASS ROAD, TRUCKEE Michael Salmon 6:00 PM, Wednesday, May 21, 2025 Steven Poncelet AGENDA Scott Crow Jillian Steward Martina Rochefort 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Changes to the agenda 5. Public Comment— This is time set aside for the public to address the Board on any matter not on the agenda. Testimony related to any agendized matter should be addressed at the time that that item is considered. (The public may comment on any subject that is not on the agenda. Each speaker will be limited to three minutes, but speaker time may be reduced at the discretion of the Board President if there are a large number of speakers on any given subject.) DIRECTOR UPDATE 6. This item provides time for Directors to comment on any item within the purview of the District. CONSENT CALENDAR 7. Consideration to Schedule a Public Hearing for June 18, 2025 for the Intent to Adopt the Updated Martis Valley Groundwater Management Plan. Set a Public Hearing for the District's regularly scheduled Board meeting on June 18, 2025, at 6:00PM or soon thereafter for the intent to adopt an updated Martis Valley Groundwater Management Plan. 8. Consideration of Approval of Meeting Minutes Approval of May 7, 2025 Regular Meeting Minutes ACTION ITEMS a .®. PZJ��If.' A SPECIAL I .i..... LEADERSHHIPP FaU FORNNIION 11570 Donner Pass Road,Truckee,CA 96161 Phone-530-587-3896-www.tdpud.org Page 1 of 22 9. Consideration of Approval of a 2025 Q1 Power Cost Adjustment (PCA) of$0.0093 credit per kWh Billed in June, July, and August 2025. Approve Power Cost Adjustment for 2025 Q1 of $0.0093 credit per kWh billed in June, July, and August 2025 WORKSHOP 10. District's Future Workforce Scholarship Fund Recipients for College Bound Seniors Receive this report and provide input to staff. CLOSED SESSION 11. Closed Session Pursuant to Government Code Section 54957.6 Conference with Labor Negotiator Agency Negotiator(s): Board President Christa Finn & Board Vice President Tony Laliotis Unrepresented Employee: General Manager ADJOURNMENT The agenda is available for review at the TDPUD Administrative Office and the District's internet website. Posted on Friday, May 16, 2025. Martina Rochefort, District Clerk A copy of the agenda packet is available for public review, during normal business hours, at the District Administrative Office located at 11570 Donner Pass Road. Public participation is encouraged. The meeting location is accessible to people with disabilities. Every reasonable effort will be made to accommodate participation of the disabled in all of the Districts public meetings. If particular accommodations for the disabled are needed (i.e. disability-related aids, or other services), please contact the District Clerk at (530) 582-3923 or martinar@tdpud.org, at least 24 hours in advance of the meeting. Any person with a disability may submit a request for reasonable modification or accommodation to the above-described means for accessing and offering comment at the meeting to Martina Rochefort, District Clerk, or email at martinar@tdpud.org, who will swiftly resolve such a request. Page 2 of 22 AGENDA ITEM #7 Public Utility District m MEETING DATE: May 21, 2025 TO: Board of Directors FROM: Steven Poncelet, Public Information Officer SUBJECT: Consideration to Schedule a Public Hearing for June 18, 2025 for the Intent to Adopt the Updated Martis Valley Groundwater Management Plan. APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: Set a Public Hearing for the District's regularly scheduled Board meeting on June 18, 2025, at 6:OOPM or soon thereafter for the intent to adopt an updated Martis Valley Groundwater Management Plan. BACKGROUND: The District has a long history of stewardship and collaboration in managing water resources, including the current strategic plan's Local Watershed Stewardship Board initiative. A major tenant of local water resource management has been to use the best available science to inform the decision-making process. This has led to decades of monitoring and scientific study, including the Desert Research Institute's Martis Valley groundwater model/report as part of the Federal Truckee River Basin Study. This effort was supported by the District, Northstar Community Services District - NCSD, and Placer County Water Agency - PCWA (Local Water Agencies) and was a key component of the collaboratively adopted 2013 Martis Valley Groundwater Management Plan (GMP). In 2014, California passed into law the Sustainable Groundwater Management Act (SGMA), which applied to all Medium and higher Priority basins (Martis Valley was at the time designated Medium Priority). This, in effect, put the implementation of the 2013 GMP on hold. The District, PCWA, NCSD, Town of Truckee, Nevada County and Placer County (local SGMA agencies) in the Martis Valley Groundwater Basin (MVGB) put forth an Alternative Submittal in December 2016 in compliance with SGMA. The local SGMA agencies hired a licensed engineering firm (GEI Consultants) to certify the MVGB Alternative Submittal. The Alternative Submittal and supporting GEI Consultants report document that the MVGB had operated within its sustainable yield for at least 25 years. In early 2019, while Alternative Submittal review continued, DWR was required to review basin Page 1 of 5 Page 3 of 22 prioritization. The MVGB was initially again prioritized Medium, but upon review and engagement with DWR by local SGMA agencies, the MVGB was re-prioritized to 'Very Low' and was no longer required to comply with SGMA. The local SGMA agencies agreed to formally withdraw the Alternative Submittal from DWR consideration and return to the 2013 Martis Valley GMP framework, including reconvening the Stakeholder Working Group active in the development of the plan. It is believed that this local GMP framework is a much more effective and efficient process to manage groundwater resources than the heavy hand of SGMA regulation. The three Local Water Agencies worked with our local partners to develop a plan to return to the Martis GMP framework. This included updating the Stakeholder Working Group list to reflect the local agencies or groups directly interested in Martis Valley groundwater resources. In general, stakeholders fall into three categories: local public agencies; major water users/pumpers; and local non-profits/interest groups. A GMP Stakeholder Working Group kick-off meeting was held on October 3, 2019, where the three Local Water Agencies reviewed the 2013 Martis Valley Groundwater Management Plan and the key meetings and actions that would occur going forward. This included an annual report tracking the performance and long-term sustainability of the groundwater basin, along with an update to the GMP every five years. Given the significant amount of work and annual reporting during the SGMA Alternative Submittal, it was agreed that the start of the GMP would now be 2019. It was also agreed that the first GMP annual report would cover the past two water years (October - September 2017/2018 and 2018/2019), which would provide continuity from the last SGMA annual report. This GMP annual report was conducted over the winter months, with the annual Stakeholder Working Group meeting in the spring to review the results. Ongoing GMP implementation actions included contracting with a licensed California hydrogeologist annually, reviewing monitoring and other data, and providing a report on the status of the basin, along with hosting an annual stakeholder working group meeting. The GMP also requires a comprehensive update every 5 years. The GMP included various Basin Management Objectives (BMO's). The BMO's, and the actions that are documented below each one, form the basis of the GMP implementation. The BMO's are: • BMO #1 - Manage groundwater to maintain established and planned uses; • BMO #2 - Manage groundwater within the provisions of the Truckee River Operating Agreement (TROA); • BMO #3 - Collaborate and Cooperate with Groundwater Users and Stakeholders in the Martis Valley Groundwater Basin; • BMO #4 - Protect Groundwater Quantity and Quality; • BMO #5 - Pursue and use the best available science and technology to inform the decision-making process; and • BMO #6 - Consider the environment and participate in the stewardship of groundwater resources. Page 2 of 5 Page 4 of 22 Section 3.1.1 of the GMP, under BMO #1 Manage groundwater to maintain established and planned uses, states that the GMP Partners will develop and implement a summary report every five years. It goes on further to say that this implementation action provides a report every five years that summarizes groundwater conditions and management activities, and presents an opportunity to update and improve the GMP. The summary report will include: • A summary of monitoring results with a discussion of historical trends; • A summary of management actions during the period covered by the report; • A discussion of whether actions are achieving progress towards meeting BMO's; • A summary of proposed management actions for the future; • A summary of any GMP changes that occurred during the period covered by the report; • A summary of actions taken to coordinate with other water and land agencies and other government agencies; and • Recommendation of updates and changes to the GMP. The GMP Partners worked collaboratively in 2024 to create a Request for Proposal (RFP) to conduct the Water Year 2023 annual report and a five-year Martis Valley GMP update. The five-year Martis Valley GMP update will incorporate the Water Year 2023 annual report. The public process will also include one stakeholder working group meeting and one public meeting to share the study with key stakeholders and the community. The RFP was issued on February 6, 2024 and advertised in the Sierra sun. RFPs were due on March 14th, and the Board awarded a contract to GEI Consultants at the April 3, 2024 Board meeting. The GEI Consultant proposal includes the services of Balanced Hydrologics, a local hydrogeologic consulting firm. The GEI Consulting proposal was for an amount not to exceed $104,119, to be split equally between the GMP partners. A 10% change order authorization was included. The District, as has been done in the past, is the contracting agency for this contract and will seek reimbursement from the GMP Partners. The GMP Partners have been working with GEI on the execution of the Water Year 2023 annual report and, more recently, on the GMP 5-year update. Early in the process of reviewing the requirement for the GMP 5-year update, GEI Consultants recommended that the GMP Partners fully comply with the public process and notification requirements that the California Department of Water Resources (DWR) has published regarding updating a GMP. While the GMP Partners have voluntarily decided to implement, and update, the GMP as the most effective basin management and stewardship tool, the GMP Partners also agreed that following DWR's public process and notification requirements was appropriate in the spirit of good local governance and transparency. The DWR public process and notification requirements for updating a GMP have dictated the following schedule, Board action considerations, and public meetings going forward: Page 3 of 5 Page 5 of 22 • Wed. January 15, 2025: District Board Action to consider setting a Public Hearing for February 5, 2025 for the intent to update the Martis GMP (Completed); • Friday, January 17 and January 24: Post District's intent to update the Martis GMP in Sierra Sun (Completed); • February 5, 2025: Hold public hearing and consider adoption of District Resolution of intent to update the Martis GMP (Completed); • District to provide DWR copy of Resolution within 30 days of adoption (Completed); • Friday, February 17 and February 25: District to publish adopted Resolution of intention per Gov't Code 6066 in Sierra Sun (Completed); • March-early May: Finalize drafts of the Annual Report and 5-Year GMP update (Completed) • Provide final drafts to Stakeholder Working Group and hold Stakeholder Working Group and Public meetings (Draft to SWG week of May 12-16, SWG and Public meetings set for Tuesday, June 2nd 3:00-4:30PM SWG and 6:00- 7:OOPM Public) • Wednesday, May 21: District Board Action to consider setting a Public Hearing for June 18, 2025 for intent to adopt and updated Martis GMP; • Friday, May 30 and June 6: Post District's intent to update in Sierra Sun; • Early June: Final versions of the Annual Report and 5-Year GMP Update; • Wednesday, June 18: Hold public hearing and receive protests. Consider the adoption of a Resolution to adopt an updated Martis GMP; and • District to provide DWR with a copy of Resolution within 30 days to adopt the final Martis GMP along with the final Martis GMP. Note: The GMP Partners, Northstar Community Services District and Placer County Water Agency, are in the process of executing similar schedules, as each GMP partner must also follow these requirements for updating a GMP. The current plan is to provide each GMP Partner's resolution of intent to update the Martis GMP, along with the resolution of intent to adopt the Martis GMP, and final adopted Martis GMP simultaneously. ANALYSIS AND BODY: This recommended District Board action is the next step that the GMP Partners are voluntarily taking to follow DWR's requirements for public process and notifications when updating a GMP. GOALS AND OBJECTIVES: District Code 1 .05.020 Objectives: 1. Responsibly serve the public. 3. Provide reliable and high quality water supply and distribution system to meet current and future needs. 5. Manage the District in an environmentally sound manner. 6. Manage the District in an effective, efficient and fiscally responsible manner. Page 4 of 5 Page 6 of 22 District Code 1.05.030 Goals: 1. Manage for Financial Stability and Resiliency 2. Environmental Stewardship: Create a sustainable resilient environment for all our communities. 3. Engage with our customers and communities in a welcoming and transparent way to identify opportunities. FISCAL IMPACT: The existing GEI Consulting contract is for an amount not to exceed $114,531, which will be split equally among the GMP Partners. This item was included in the FY24 Board approved budget under GL 2.2.923.00.736 ($8,000 for the annual reporting portion) and GL 2.1.923.756 ($40,000 for the GMP 5-year update). These items are also budgeted for 2025, with sufficient funds to cover projected expenses in FY25. ATTACHMENTS: None Page 5 of 5 Page 7 of 22 AGENDA ITEM #8 Public Utility District m MEETING DATE: May 21, 2025 TO: Board of Directors FROM: Martina Rochefort, District Clerk/Executive Assistant SUBJECT: Consideration of Approval of Meeting Minutes APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: Approval of May 7, 2025 Regular Meeting Minutes BACKGROUND: ANALYSIS AND BODY: GOALS AND OBJECTIVES: District Code 1 .05.020 Objectives: 1. Responsibly serve the public. 5. Manage the District in an environmentally sound manner. 6. Manage the District in an effective, efficient and fiscally responsible manner. FISCAL IMPACT: There is no fiscal impact associated with approval of this item. ATTACHMENTS: 1. Minutes 2025 0507 DRAFT Page 1 of 1 Page 8 of 22 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SPECIAL BOARD MEETING MINUTES TDPUD BOARD ROOM, 11570 DONNER PASS ROAD, TRUCKEE, CA 10:00 AM, THURSDAY, MAY 7, 2025 1. Call to Order Meeting was called to order at 6:00 p.m. 2. Roll Call Directors Present: Courtney Murrell, Steve Randall, Jeff Bender, Vice President Tony Laliotis and President Christa Finn Staff in attendance: Brian Wright, General Manager; Scott Crow, Chief Information Officer/Director of IT/Assistant General Manager; Michael Salmon, Chief Financial Officer; Jared Carpenter, Director of Electric Power Supply; Mike Swanson, Director of Electric Operations & Engineering; Chad Reed, Water Utility Director; Steven Poncelet, Public Information/Strategic Affairs Director; Jillian Steward, Director of Human Resources & Risk Management; Xander Thomassian, Network & Systems Administrator; Martina Rochefort, District Clerk/Executive Assistant Other: Steve Gross, General Counsel (via zoom) 3. Pledge of Allegiance Director Randall led the Pledge of Allegiance. 4. Changes to the agenda No changes were made to the agenda. 5. Public Comment No public comment was received. DIRECTOR UPDATE 6. Vice President Laliotis noticed construction crews were already out working on the water system and thanked them for their work. President Finn attended the quarterly Climate Transformation Alliance meeting which focused on transportation in the region. President Finn also attended the Convene, Champion, Catalyze meeting which featured work for wildfire season. DEPARTMENT UPDATES 7. Chad Reed, Water Utility Director, reviewed water production and upcoming Capital Improvement Projects. Mike Swanson, Director of Electric Operations & Engineering, presented details of an outage near Donner Lake on April 16, 2025. Mr. Swanson also shared benefits of a pilot program involving the installation of covered conductors. A future workshop will be scheduled to review the project in depth. Jillian Steward, Director of Human Resources and Risk Management, reviewed recent staff 1 Page 9 of 22 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SPECIAL BOARD MEETING MINUTES TDPUD BOARD ROOM, 11570 DONNER PASS ROAD, TRUCKEE, CA 10:00 AM, THURSDAY, MAY 7, 2025 promotions, trainings and employee events. James Flowers and Clayton Wise were recognized for their efforts in Safety and Accountability, respectively. Michael Salmon, Chief Financial Officer, highlighted 2024 Customer Service survey scores. Mr. Salmon also provided an update on billing metrics and fiscal year 2024 audit work. Scott Crow, IT Director/Chief Information Officer/Assistant General Manager, shared highlights of the District's participation in the local Tech Teens program. Steven Poncelet, Public Information & Strategic Affairs Director, attended the Northern California Power Agency (NCPA) and Northwest Public Power Association (NWPPA) annual Federal Policy Conference and advocacy event last week in Washington, D.C. Brian Wright, General Manager, participated on a panel at last month's California Municipal Utility Association (CMUA) conference. PUBLIC HEARING 8. Public Hearing Related to Adoption of the Annual Electric and Water Standby Charges A. Conduct a public hearing at the regularly scheduled District Board Meeting on May 7, 2025, at 6:OOPM, or as soon thereafter, to receive input on the adoption of annual Electric and Water Standby Charges; and B. Adopt the following resolutions: 1. Resolution 2025-09 Continuing and Fixing Electric Standby Charges for the Fiscal Year 2025-2026; 2. Resolution 2025-10 Continuing and Fixing Water Standby Charges for the Fiscal Year 2025-2026; 3. Resolution 2025-11 Requesting Collection of Electric and Water Standby Charges on County of Nevada Tax Roll; and 4. Resolution 2025-12 Fixing and Placing Electric and Water Standby Charges on Placer County Tax Roll for Collection. President Finn opened the Public Hearing at 6:49 p.m. Michael Salmon, Chief Financial Officer, presented on the annual Electric and Water Standby Charges. Discussion was held. No public comment was received. President Finn closed the Public Hearing at 6:55 p.m. 2 Page 10 of 22 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SPECIAL BOARD MEETING MINUTES TDPUD BOARD ROOM, 11570 DONNER PASS ROAD, TRUCKEE, CA 10:00 AM, THURSDAY, MAY 7, 2025 ACTION: Motion made by Vice President Laliotis to adopt Resolution 2025-09, Resolution 2025-10, Resolution 2025-11 and Resolution 2025-12 as presented, seconded by Director Murrell. AYES: Murrell, Randall, Bender, Laliotis and Finn NAYS: none ABSTAIN: none ABSENT: none Motion passed unanimously. 9. Public Hearing Related to the Adoption of an Ordinance Authorizing the Board to Appoint and Establish Compensation for Officers of the District by Resolution A. Conduct a Public Hearing regarding Ordinance No. 2025-01; B. Adopt Ordinance No. 2025-01 approving the process for appointing and establishing compensation for officers of the District President Finn opened the Public Hearing at 6:56 p.m. Brian Wright, General Manager, presented Ordinance 2025-01. Discussion was held. No public comment was received. President Finn closed the Public Hearing at 7:01 p.m. ACTION: Motion made by Director Bender to adopt Ordinance 2025-01 approving the process for appointing and establishing compensation for officers of the District as presented, seconded by Director Randall. AYES: Murrell, Randall, Bender, Laliotis and Finn NAYS: none ABSTAIN: none ABSENT: none Motion passed unanimously. CONSENT CALENDAR 10. Consideration to increase the 2025 Annual Authorization for Electric Engineering Consulting Services Authorize the General Manager to execute a professional services contract amendment for an additional authorization amount of $423,000 with NV5 for engineering consulting services for a total FY25 not-to-exceed contract amount of $673,000. 11. Approval of Minutes Approval of April 2, 2025 Regular Meeting and April 3, 2025 Special Meeting Minutes 3 Page 11 of 22 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SPECIAL BOARD MEETING MINUTES TDPUD BOARD ROOM, 11570 DONNER PASS ROAD, TRUCKEE, CA 10:00 AM, THURSDAY, MAY 7, 2025 12. Consider Approval of the Treasurer's Report, May 2025 Approve the Treasurer's Report for May 2025 which includes: a. Fund Balances for the Month of February 2025 b. Disbursements for the Month of March 2025 No public comment was received. ACTION: Motion made by Director Bender to approve the Consent Calendar as presented, seconded by Vice President Laliotis. AYES: Murrell, Randall, Bender, Laliotis and Finn NAYS: none ABSTAIN: none ABSENT: none Motion passed unanimously. WORKSHOP 13. Considering Review of the District's 2024 Water Utility Annual Consumer Confidence Reports Review the Truckee Donner Public Utility District's Main System and Hirschdale System's 2024 Water Quality Consumer Confidence Reports and provide feedback to staff. Chad Reed, Water Utility Director, presented the 2024 Water Quality Consumer Confidence Reports. Discussion was held. No public comment was received. Open Session recessed at 7:10 p.m. CLOSED SESSION 14. Closed Session Pursuant to Government Code Section 54957 Public Employee General Manager's Performance Plan Review. 15. Closed Session Pursuant to Government Code Section 54957.6 Conference with Labor Negotiator Agency Negotiator(s): Board President Christa Finn, Board Vice President Tony Laliotis Unrepresented Employee: General Manager Open Session reconvened at 10:01 p.m. 4 Page 12 of 22 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SPECIAL BOARD MEETING MINUTES TDPUD BOARD ROOM, 11570 DONNER PASS ROAD, TRUCKEE, CA 10:00 AM, THURSDAY, MAY 7, 2025 President Finn noted there was no reportable action taken in Closed Session. ADJOURNMENT Meeting adjourned at 10:02 p.m. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Christa Finn, President Respectfully Submitted, Martina Rochefort, District Clerk 5 Page 13 of 22 AGENDA ITEM #9 Public Utility District m MEETING DATE: May 21, 2025 TO: Board of Directors FROM: Michael Salmon, Chief Financial Officer SUBJECT: Consideration of Approval of a 2025 Q1 Power Cost Adjustment (PCA) of $0.0093 credit per kWh Billed in June, July, and August 2025. APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: Approve Power Cost Adjustment for 2025 Q1 of $0.0093 credit per kWh billed in June, July, and August 2025 BACKGROUND: Electric Rate Ordinance 2023-01 established a Power Cost Adjustment (PCA) to be reviewed and calculated quarterly. The PCA is calculated by comparing the budget versus actual wholesale costs of purchased power. To the extent the cost difference is less than budget, a credit PCA is applied to customer billings. To the extent the cost difference is greater than budget, a PCA charge is applied to customer billings. If the cost difference is more than 15%, the rate reserve fund will be included in the assessment of PCA determination. ANALYSIS AND BODY: Staff analyzed actual wholesale purchased power costs for Quarter 1 of 2025 as it compares to budget expectations. Further, staff factored Q4 2024 items that were estimated or changed into this Q1 2025 PCA calculation. The detailed analysis is provided as Attachment 1 to this report. Results of the Q1 2025 analysis can be summarized as follows: $87.40 cost per MWh, Budget 70.50 cost per MWh, Actual ($16.90) cost per MWh variance (19.3%) under-budget x 51,274.217 MWh volume purchased _ $866,534 cost variance impacts Q1, favorable/under-budget (194,329) less Q1'2025 portion greater than 15%, to Rate Reserve (310,569) less Q4'2024 PCA adj., primarily NV Energy billing corrections _ $361,636 net credit Q1 PCA Page 1 of 3 Page 14 of 22 The $361,636 Q1 PCA amount and a 38,739,840 kWh estimate (June July and August 2025 billing cycles) results in a PCA customer credit of$0.0093 per kWh PCA for Q1 2025. This PCA credit will be applied to customers' June - August 2025 billing cycles. For the 2025 Q1 billings, the District customers' effective average retail cost per kWh was $0.2427. The PCA for Q1 equates to a bill credit of 3.8% ($0.0093 / $0.2427) and $0.2334 post-credit cost per kWh. The 3.8% credit is estimated to decrease the average residential monthly bill by $4.39 (472 kWh average) for June, July, and August 2025. The favorable cost per MHh of$16.90 or 19.3% variance for Q1 was driven primarily by low market natural gas prices, as well as, favorable Stampede hydro prices (market) and generally favorable market prices for power, as opposed to budget expectations of inflation in 2024, continuing with more inflation cost pressures in 2025. Included in the Q1 PCA is a charge factor of$310,569 for true-up of Q4 2024 PCA calculation. The adjustment is due primarily to NV Energy billing errors for Energy Imbalance Market (EIM) estimated at $277,964 for November and December of 2024. Further, the PCA calculation each quarter contains estimates, which are reconciled in each subsequent PCA calculation. As noted in attachment 1, the Q1 2025 PCA calculation includes estimates for corrections of Q1 billing errors made by NV Energy. Per Ordinance, the portion of cost variance exceeding 15% (or 4.3% of the 19.3% Q1 cost variance) equates to $194,329 and is recommended to be transferred to Rate Reserve, in accordance with Ordinance guidance. This transfer will lower the planned remaining 3 years of rate reserve replenishment by $62,881 per year. Further details are provided on page 2 of the attachment. The rate reserve balance and replenishment plan will be reviewed as part of the upcoming budget cycle this fall. PCA History: 2024 Q1 - ($.0088) Credit 2024 Q2 - $.0012 Charge 2024 Q3 - ($.0096) Credit 2024 Q4 - ($.0337) Credit 2025 Q1 - ($.0093) Credit GOALS AND OBJECTIVES: District Code 1 .05.020 Objectives: 1. Responsibly serve the public. 6. Manage the District in an effective, efficient and fiscally responsible manner. Page 2 of 3 Page 15 of 22 District Code 1.05.030 Goals: 1. Manage for Financial Stability and Resiliency 3. Engage with our customers and communities in a welcoming and transparent way to identify opportunities. 4. Take the best of private sector thinking to modernize the utility and add value to our communities. FISCAL IMPACT: The net effect of the PCA credit of$361,636 for Q1 is to equalize the purchase power cost per MWh fluctuation. The extent to which MWh volume varies, purchase power cost will continue to vary to budget. ATTACHMENTS: 1. PCA 2025Q1 Page 3 of 3 Page 16 of 22 TDPUD POWER COST ADJUSTMENT(PCA) 2025 Q1 4/28/2025 BUDGET ACTUAL VARIANCE Jan-25 Feb-25 Mar-25 Q1 2025 Jan-25 Feb-25 Mar-25 Q1 2025 Q1 2025 Total Energy Purchased MWh 17,948.000 15,908.000 16,170.000 50,026.000 18,532.150 16,182.999 16,559.068 51,274.217 (1,248.217) -2.5% Total Costs By Vendor- Energy Supply-UAMPS(533)(v1 0584) $ 1,442,700 $ 1,232,300 $ 1,169,900 $ 3,844,900 $ 1,296,594 $ 930,484 $ 959,137 $ 3,186,214 $ (658,686) -17% Energy Supply-TCID(536) (v1183) 0 0 11,700 11,700 0 0 0 0 (11,700) -100% Energy Supply-STAMPEDE(539) (v7 0 58,000 58,000 116,000 69,218 33,636 44,560 147,414 31,414 27% Transmission -SPPC NVE(534) (v64( 74,000 88,100 110,200 272,300 59,231 49,189 61,418 169,837 (102,463) -38% EIM -NVEnergy(534) (v6403) 32,800 39,000 48,800 120,600 (NVE) 33,349 30,740 28,572 92,661 (27,939) -23% Enviro Compli/Regulty Other(588) 2,300 2,300 2,300 6,900 (W) 7,991 5,375 5,361 18,726 11,826 171% Total Power Costs $ 1,551,800 $ 1,419,700 $ 1,400,900 $ 4,372,400 $ 1,466,382 $ 1,049,422 $ 1,099,047 $ 3,614,852 $ (757,548) -17% Total Power Cost$/MWh $86.46 $89.24 $86.64 $87.40 $79.13 $64.85 $66.37 $70.50 ($16.90) -19.3% account1..555 $ 1,551,800 $ 1,361,700 $ 1,342,900 $ 4,256,400 $ 1,397,164 $ 1,015,786 $ 1,054,487 $ 3,467,438 account 1.4.908.05.768 $ - $ 58,000 $ 58,000 $ 116,000 $ 69,218 $ 33,636 $ 44,560 $ 147,414 (W)incldues new WAPA-"Restoration Fund Charge"of$5,361/month,beg.112025 (NVE)incldues estimates of NVE EIM corrections of billing errors$175k,$115k,and$95k,JFM respectively. VARIANCE Jan-25 Feb-25 Mar-25 Q1 2025 Total Energy Purchased MWh 584.150 274.999 389.068 1,248.217 2.5% Total Costs By Vendor- per MW Variance 40,354 Budget MW Jun'25-Aug'25 Energy Supply-UAMPS(533) (146,106) (301,816) (210,763) (658,686) -17% 96% retail factor Energy Supply-TCID(536) 0 0 (11,700) (11,700) -100% $ (14.40) 38,740 MWh billed estimated '2438,561,'2336,165,'2237,414 Energy Supply-STAMPEDE(539) 69,218 (24,364) (13,440) 31,414 27% B 38,739,840 in KWh,billed estimate 3yr Avg 37,380 Transmission -NVEnergy(534) (14,769) (38,911) (48,782) (102,463) -38% (2.13) EIM -NVEnergy(534) 549 (8,260) (20,228) (27,939) -23% (0.60) Q1 $ (672,205)Q1 PCA Enviro Compli/Regulty Other(588) 5,691 3,075 3,061 11,826 171% 0.23 Q1TU 310,569 Q1 PCA true-up prior PCAs Total Power Costs $ (85,418) $ (370,278) $ (301,853) $ (757,548) -17% A (361,636)Q1 PCA Amount Total Power Cost$/MWh ($7.33) ($24.40) ($20.26) ($16.90) -19.3% $ (16.90) A/B $ (0.0093) PCA per KWh Q1 2025 to be $ (13.11) -15.0%PCA applied to Jun'25,Jul'25&Aug'25 billings Quarter Variance $ (757,548) -17% $ (3.79) -4.3%RATE RESERVE Price $ (866,534) -19% Volume $ 108,986 2% Budget Cost per Actual Cost per per MW$by group py Q1 Bdg 41 cy Q1 at Actual Vol. at Actual Vol. Q4 PCA Estimate True-up items: UAMPS $68.79 $81.12 $67.11 $ 87.40 $ 70.50 per MWh Cost -Budget/Actual Billed KWh variances prior PCAs > 32,605 Stampede $90.16 $49.44 $38.81 51,274.217 51,274.217 Actual Purchased MWh Q1.2025 NVE EIM Q4 Correction 277,964 Transm/EIM/other $8.72 $7.67 $5.48 $ 4,481,367 $ 3,614,832 PP Cost-B$/@A Volume/A$/@A Volume All In Total $78.45 $87.40 $70.50 -19.3% $ (866,534) Q1 Power Cost per MWh Variance All In Total-Q1 2023-$95.46 -4.3% $ 194,329 less to Rate Reserve,per Ordinance Q1 PCAtrue-up (Q1TU) $ 310,569 -15.0% $ (672,205) Net to PCA Page 17 of 22 TDPUD Electric Utility Rate Reserve YEAR Month Balance Change $ (2,360,000) Use/draw 2020 12 $ 5,938,528 $ 210,000 base funding @ budget 2021 12 $ 6,454,689 516,162 $ 475,763 CVPIA legal settlement funds 2022 12 $ 6,845,380 390,690 $ 130,053 Investment income 2023 12 $ 5,301,196 (1,544,184) A (1,544,184) A, 2023 Change 2024 12 $ 5,996,206 695,010 B 2025 1 $ 6,553,065 556,859 c $ 130,000 base funding @ budget 2025 2 $ 6,571,196 18,132 $ 376,000 replenish funding @ budget 2025 3 $ 6,591,313 20,117 $ 189,010 Investment income 695,010 B, 2024 Change $ 164,000 base funding @ budget $ 376,000 replenish funding @ budget $ 16,859 Investment income 2025 Budget, Purchased Power $ 15,450,000 556,859 C, 2025 January Change Policy x 50% DC Policy Target balance $ 7,725,000 March 2025 balance vs Target $ (1,133,687) Transfer in RE: Q1 PCA $ 194,329 <May 21, 2025 Action Item $ (939,358) D, post-transfer in May 2025, shortfall to Target shortfall to Target, post-transfer $ (939,358) D /3 years remaining years for replinshement('26'28) $ (313,119) updated replenishment amount/year-'26=28 $ (376,000) original planned replenishment amount per year as part of rate reserve draw in 2023, the plan was to $ 62,881 savings per year replenish the net funds of$1.88M (2.36M less $476k CVPIA) $ 0.35 per account per month average over five years, 2024 to 2028, at $376,000 per year $376,000 x 5 = $1,880,000 Revision of this plan calculates to right > Above recommended. An alternative, $376k in 2026 and $376K 2027 and $187 in 2028- not recommended Page 18 of 22 AGENDA ITEM #10 r P, I Public Utility District MEETING DATE: May 21, 2025 TO: Board of Directors FROM: Steven Poncelet, Public Information Officer SUBJECT: District's Future Workforce Scholarship Fund Recipients for College Bound Seniors APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: Receive this report and provide input to staff. BACKGROUND: The District has a long history of service to our customers and community. Central to this success has been the dedicated Board and staff who work diligently to provide high-quality electric and water services to our community. The District has made significant investments in organizational culture with a commitment to ensuring Truckee Donner Public Utility District is a great place to work, along with building strong relationships with local schools and community organizations to help foster a vibrant local workforce. This includes enabling peer-to-peer education in the District and our programs within the schools, bringing school children to TDPUD for tours, attending high school job fairs, Tech Teens, and collaborating with local agencies/organizations. The electric and water utility sectors have experienced dramatic changes over the last few decades, driven by technology, the environment, and customer expectations. This only seems to be accelerating today, and the need to recruit and retain top-level talent remains critical to achieving the District's mission. The District has invested in compensation studies and organizational assessments to support organizational excellence and ensure that the District is a competitive employer in the utility sector. The District has also invested in the creation and implementation of the Truckee Tahoe Workforce Housing Agency to help address challenges in the local housing landscape, which has added a layer of challenge to the recruitment and retention process. While the District's challenges are somewhat unique to our community, almost every electric and water utility in California, and beyond, faces challenges in the recruitment and retention of top talent. How to best "grow our own" local workforce has been a subject of internal discussion for many years. Raising awareness of the important work that the District does, and the professionals that make things happen, has been a key focus for staff over the last few Page 1 of 4 Page 19 of 22 years. Out of these discussions emerged the interest in creating a scholarship fund to help create the local future workforce needed by the District. One area of interest was the high school scholarships supporting the many vocations/industry certifications that electric and water utilities need today and into the future. The General Manager directed staff to investigate and propose a new scholarship program for the District. Funds were included in the Board-approved FY24 and FY25 budgets in the amount of—$40,000 per year. A working group of representatives from Human Resources, Finance, and Communications was created in mid-2024 to develop the new scholarship program. The working group considered the college and vocational degrees/certifications that we need for our future workforce, what existing local scholarship programs looked like, and how to implement a scholarship program, including the application process, evaluation and award of scholarships, and administration of the funds. This analysis quickly led to the Tahoe Truckee Community Foundation (TTCF) and their existing scholarship programs serving both local college- bound high school seniors and those pursuing vocational or industry degrees/certifications. TTCF has evolved into the hub for local scholarship programs, and has teamed with over 100 local agencies and organizations to administer their scholarship programs. This includes local agencies like Truckee Sanitary District and Truckee Tahoe Airport District and neighboring electric utility Liberty Utilities. TTCF's local high school college-bound senior scholarship program has grown to over $1.5 million dollars in total awards per year, and the vocational/workforce program is approaching $500,000 per year. Equally important, TTCF has developed a streamlined application and award process that includes a common application that students only need to fill out once, consideration of demonstrated applicant work ethic and financial need, an award process with review by a diverse committee, and equitable distribution of awards to ensure the maximum number of our future workforce can be helped. TTCF only charges a nominal fee (1.5%) for these services, which, for a District scholarship program of—$40,000 per year, is only $600 in administrative fees. The costs for the District to administer directly would be significantly more, along with the potential loss of the efficiencies and equity built into the TTCF program. District staff met with TTCF staff to formalize both the details of the District's proposed scholarship program and to document TTCF's existing scholarship programs and proposal to administer the District's scholarship program. The District Board took action at the January 15, 2025 board meeting to establish the scholarship fund. Key District scholarship fund details included: • Annual scholarships for both graduating high school seniors to attend college, and for individuals wishing to pursue the certification and accreditations necessary to work in water and electric utility operations. Both the college and utility operations workforce scholarships are to be administered by the Tahoe Truckee Community Foundation under existing scholarship programs. District- established scholarship requirements are included in a fund at TTCF. The District will replenish funds at the beginning of each year to fund the upcoming year scholarships. Page 2 of 4 Page 20 of 22 • TTCF will use their existing scholarship committee to select District scholarship awardees, and scholarship recipients will be presented to the District's Board annually. • Scholarship details: To be eligible, the applicant must live within the District's service territory and be a customer or be a dependent of a District customer. Scholarship applicants must meet the requirements of the TTCF scholarship application process and timelines. The District may require additional application requirements explaining why the applicant is applying for the District scholarship. • Annual College Scholarships: o One four-year technical degree award for $2,500/year ($10,000 total). The award will be for the total amount, but paid annually. The applicant must be accepted into and attend an accredited four-year college/university within the fields of engineering, computer science, information technology, environmental sciences, arborist/forestry, or hydrology (or equivalent). o One two or four-year degree award for $2,500/year ($5,000 - $10,000 total). The award will be for the total amount paid annually. The applicant must be accepted into and attend an accredited two- or four-year college/university. The degree being pursued must be in the fields of business, finance, economics, communications, marketing, HR management, or public administration, (or equivalent). o Scholarship cycle, from application to award: January through May. • Annual Utility Operations Workforce Scholarships: o Two lineman school awards for $7,500 each. The applicant must be accepted into and attend an accredited lineman school, such as the Northwest Lineman College or equivalent, to become an apprentice lineman. The funds will be provided 50% upon award and 50% upon verified completion of the program. o Three awards for utility-related certifications, up to $2,000 each. The applicant must enroll in and complete a program or certification in one of the following fields: Water Utility, Automotive Technician, Construction Standards, Electrician, Commercial Driver's License, Business/Finance Administration, Clerk, Notary, and Certified Translation. o The funds will be provided upon verified completion of the program. o Scholarship cycle, from application to award: May through July. ANALYSIS AND BODY: TTCF has completed the 2025 process for annual college scholarships and has chosen two very deserving recipients for the District's college scholarships. TTCF selected Naomi Park for the four-year technical degree award ($10,000 total, $2,500/year) and Zachary Harris for the twoor four-year degree (four-year award, $10,000 total, $2,500/year). Both had very impressive applications and unmet financial needs. Naomi Park has been accepted at Cal Poly San Luis Obispo for Civil Engineering. She is an AP scholar awardee, NV All Academic Team State Champion, individual Lacross All Academic Team, MVP for Tennis and Lacross, and volunteer for Clean Up the Lake and Truckee Botany Club. Zachary Harris has been accepted to the University of San Francisco for Actuarial Studies. He received the Coaches Award for Football, 3X Page 3 of 4 Page 21 of 22 Academic State Champions, Captain of Varsity football, TNT Lacross, and Yo Bro Club. He was also Senior Class President and volunteer for the Optimist Club and Barracuda Classic 2021-2025. TTCF will present the awards at Truckee High Scholarship Night on June 2nd starting at 6 pm and are requesting that District Board or staff attend. They will have a professional photographer on hand the afternoon before the event to take pictures and are offering the District the opportunity to attend that as well, should the recipients sign up for a time slot for a "group shot" that the District could use for our own promotions/communications. District staff do plan to do a press release announcing the scholarship recipients after the June 2nd awards presentation. GOALS AND OBJECTIVES: District Code 1 .05.020 Objectives: 1. Responsibly serve the public. 3. Provide reliable and high quality water supply and distribution system to meet current and future needs. 4. Provide reliable and high quality electric supply and distribution system to meet current and future needs. 6. Manage the District in an effective, efficient and fiscally responsible manner. District Code 1 .05.030 Goals: 1. Manage for Financial Stability and Resiliency 3. Engage with our customers and communities in a welcoming and transparent way to identify opportunities. 4. Take the best of private sector thinking to modernize the utility and add value to our communities. 5. Developing an inclusive culture drives organizational integration and success. FISCAL IMPACT: Funding for the Truckee Donner PUD Future Workforce Scholarship Fund is in the approved FY25 District budget under GL 1/2.2.925.00.810. The FY25 approved budget is $41,200. Funding FY26 and beyond will be considered in future District budgets. Any expenses charged by TTCF to administer the District's scholarship program will be covered within the approved annual budgets. ATTACHMENTS: None Page 4 of 4 Page 22 of 22