fl1i.RI,o!IM: RROiJEcT;,~ , .. " •..• "" •• I. AGENDA MATERIALS TRI-DAM PROJECT TRI-DAM POWER AUTHORITY ~~~ 11\\ BOARD MEETING July 20, 2017 SPECIAL BOARD MEETING AGENDA TRI-DAM PROJECT ofTHE OAKDALE IRRIGATION DISTRICT and THE SOUTH SAN JOAQUIN IRRIGATION DISTRICT JULY 20, 2017 9:00A.M. CALL TO ORDER: Tri-Dam Project 31885 Old Strawberry Rd. Strawberry, CA 95375 FLAG SALUTE - PLEDGE OF ALLEGIANCE ROLL CALL: John Holbrook, Bob Holmes, Dave Kamper, Dale Kuil, Ralph Roos, Gail Altieri, Herman Doornenbal, Gary Osmundson, Linda Santos, Steve Webb PUBLIC COMMENT: The Joint Board of Directors encourages public participation at Board meetings. Matters affecting the operation of the Tri-Dam Project and under the jurisdiction of the Joint Districts and not posted on the Agenda may be addressed by the public. California law prohibits the Board from taking action on any matter that is not on the posted Agenda unless the Board determines that it is a situation specified in Government Code Subsection 54954.2. ACTION CALENDAR ITEMS 1-7 1. Review and approve the regular board meeting minutes of J nne 15, 2017 2. Review and approve June 2017 financial statements and statement of obligations a. Investment portfolio and reserve fund status 3. Consider approval of Resolution TDP 2017.07 District Distribution 4. Consider approval of Resolution TDP 2017.08 U.S. Bank Custodial Account 5. Consider approval of revisions to Tri-Dam Project Investment Policy 6. Consider approval ofCaiPERS armual lump sum payment 2017-2018 7. Consider approval of Purchase Authorizations a. 2017.07.01 Upgrade Microsoft Exchange 2007 to Exchange 2016 b. 2017.07.02 FERC Part 12D Inspections- HDR DISCUSSION ITEMS 8. Status update on New Melones operations and emergency spillway status COMMUNICATIONS ITEMS 9-11 9. Staff reports as follows: a. General Manager Report b. Maintenance Report c. Operations Report d. Compliance Report I 0. Generation Report II. Fisheries studies on the Lower Stanislaus River ADJOURNMENT ITEMS 12-13 12. Directors' Comments 13. Adjourn to the next regularly scheduled meeting D Items on the Agenda may be taken in any order. I I Action may be taken on any item listed on the agenda. D Writings relating to an open session agenda item that are distributed to members of the Board of Directors will be available for inspection at the Tri-Dam Project office, excluding writings that are no! public records or are exempt from disclosure under the Califomia Public Records Act D ADA Compliance Statement: In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the Clerk at (209) 965-3996 ext 110. Notification 48 hours prior to meeting will enable the Project to make reasonable arrangements to ensure accessibility to this meeting. MEETING MINUTES TRI-DAM PROJECT MINUTES OF THE JOINT BOARD OF DIRECTORS REGULAR MEETING June 15, 2017 Manteca, California The Joint Boards of Directors of the Oakdale Irrigation District and the South San Joaquin Irrigation District met in joint session at the office of South San Joaquin Irrigation District located in Manteca, California on the above date for the purpose of cond ... .. business of the TRI- DAM PROJECT, pursuant to the resolution adopted by each of ··· Districts on July 29, 1955. The meeting was called to order at 9:08a.m. by Presi Directors Doornenbal and Webb will be arriving late; th .· arrive and a quorum is achieved. President Kuil an discussed first, followed by Items 8 and 9. OlD DIRECTORS GAIL ALTIERI LINDA SANTOS STEVE WEBB arrived at 9:50 HERMAN DOORNENBAL arrived at 9:30 Also Present: Ron Berry,"~~!J).~H'tl'"'~'n" lWbtlalm Project; Rick Dodge, Finance Manager, Tri-Darl),i!'?1r§l~et; 'fii~.t~r .,, .. ·... General , SSJID; Bere Lindley, Assistant General Manag;~ff(iSSJID; Tiiffi~:Lf'!ug nsel, O'Laughlin & Paris; Dave Lyghtle, MHO Group ·i:~;;:;;g·:~\;:/'i' ·:'•:\•"::·<~--': ~~!L~ffjf;OMMENT ;,:i'i:[: ... ·-·:::::::~:;::-:::!{;\:::\ ·::\::.;;:::;::: ITEM #7 StJ'~~~ports /!1./ GM Berry provid~~!;:ln upg~t~ on the progress on repairing Hells Half Acre Road, including the temporary re-route·i'?:rggifu.~''the slide area. GM Berry also advised that the 4700 Road to Donnells Dam is not'ip.~~sable due to washouts at Bull Creek and Cascade Creek, and noted that Syblon Reid will be mobilizing on June 16th to begin repairs the following Monday. Once access to the Dam is re-gained, Tri-Dam will be closing the spill gates. Director Holmes inquired about the possibility of access to Donneiis Dam from the oid, now closed, road from Highway 108. GM Berry advised that he is in discussions with the Forest Service regarding the possibility of re-opening this road. President Kuil asked that staff provide an estimate of the cost to repair the Project's second house at Tulloch Dam. President Kuil stated that the Project should either repair the house to a usable condition or tear it down. Page 1 TDP June 15, 2017 ITEM #8 Generation Report FM Dodge noted that the generation report includes an accounting estimate of 5,000 MWh of avoided generation due from Silicon Valley Power for the month of May. He advised that the estimate is primarily a result of "exceptional dispatch" curtailments from the California ISO, according to SVP. SVP is attempting to resolve this issue, and in the meantime Tri-Dam and SVP have agreed to invoice for actual generation only. Dodge suggested that further discussion should be deferred until the financial review later in the meeting. ITEM #9 Fisheries Studies on the Lower Stanislaus River ,,, Counsel O'Laughlin advised that FISHBIO's preliminary non-n<lti\?~ predation study has been sent to National Marine Fisheries Service for comment. He stpt,~~f~hat hopefully the Districts will hear back from NMFS in July, at which time the permitting <lr\9¥1H#I:plan can then be submitted, with the final native fish recovery program in place by January Of 2018: . Director Doornenbal arrived at 9:31 a.m. Presidept'i®Gil announce~/~M~~:Cl quorum was now present and that the meeting would revert to ltemJ'gq~the agenda. ········· ITEM #1 Review and Approve Minutes ofth~~~~:18, 2017J3~gular Meeti:~,''j'), President Kuil presented the May 18, 2017 minutes qf the Regular Board meeting. Director Roos moved to approve the May 18, 2017 minutes ofthe f{egular Board meeting as presented. The motion was seconded by Directorpantos. The motion:passed: OlD 3-0; SSJID 4-0. ITEM #2 Financial Matters .·. ; ....... , a) Review and Approve the Financial Statements Finance Manager.);:Jp~ge reviewetlthe Mayfinanci~l§tatements, noting net revenue of $3.2 million fo~ttJ~ti+ioh~h!, Dodgeaqd.<$M Berry diilcussed the potentially large dollar impact frort1( ;~XCeption~l~:dispatch;ji',$ihd that Tri-Dam expects to have SVP's reconciliatiqli tomorrow, Jt;l6e 16th. 'lti~ppears that the exceptional dispatch may be attributable tc:>· over generc3iion within tfje,ISO's grid, as the Donne lis plant has been instructed by the. ISOtt)lfrnifg~peratioh at varying levels and times during May. Tri­ D<lO'lbelieves th~f<lriY ourtailmenfd~i")iing'from the ISO must be auditable. , :~lg~i::';i~i@il~l$Rus~~~ifhe significantc~sts incurred thus far on the repair of Hells Half .·. ··. · 'Acre Road aritiHPle TuiiOchThird Unit access road. b)/ ~eview lnvest;JWtPo~~~~~ and Reserve Fund Status Fiffi~bc;e Manager Q&dge presented the monthly activity and securities held in each of the P'f~Ject's reser;'{'§:funds and responded to questions. c) Revie:'~H~I-\'P~~g:e the Statement of Obligations Finance Ml'i[\iiger Dodge reviewed the monthly statement of obligations and responded to questions. Director Kamper moved to approve the financial statements and statement of obligations as presented. Director Doornenbal seconded the motion. The motion passed: OlD 3-0; SSJID 4-0. Director Webb arrived at 9:50a.m. Page 2 TOP June 15, 2017 ITEM #3 Consider Approval of Securities Dealers FM Dodge presented three securities firms and the corresponding account representative for approval to engage in securities brokerage activity. Dodge reviewed each firm's basic financial condition and each account rep's FINRA BrokerCheck report and answered questions. Director Doornenbal moved to approve the following resolutions: a. Resolution TOP 2017-04 Vining Sparks IBG, L.P. b. Resolution TOP 2017-05 Piper Jaffray &Co. c. Resolution TOP 2017-06 Morgan Stanley Director Roos seconded the motion. The motion passed: OlD 4~.QtJ~:~~ID 4-0. ITEM #4 Consider Approval of Revisions to the Tri-Darr(!f'J!;;~~pJPolicy Finance Manager Dodge presented revisions to Tri-Dapjls. investmenf<i:)~li9Y· Dodge explained that the revisions are primarily to reflect the apprOI(9{9f new broker I a~~i.!i)fS, the addition of several new internal controls necessary for managipg;~lle investment portfoHI;i)]mternally, and the elimination of several permissible investments tl:);~f(~'fe not consi9ered necess'i:l\&ii::, ··:.;,:,.;:-:-::.;.:-' i·~>:.. ··-:-:':-:·;-:-:<>','· '·""'·?'''· ""'"''''''' Director Roos moved to approve the proposed ch~~S~.;:; tq;;t~~(j/fi~estment policy ~·~ presented. Director Santos seconded the motion. The motion pa$$\:i:~i,{i1;®1D 4-0; SSJID 4-0. ITEM #5 Consider Approval of Prdk~~~~:f€l$HBIO fi&~gf!,t Revision - Stanislaus River Native Fish Plan ·::i:::. ····t'i\''1'1::%:·. ···· .. Counsel O'Laughlin gave an overview ~ff:the St~~~~li;!.!:!s Ri~l*~!'i~ative Fish Plan, previously discussed during the FISHF)JQ:J!i)port. O'L~@Qhlir)::~ii!iHse~)ithJ;l,t.theDistricts have told Congress that the Districts will do thi:!.;!Ai&N~i!~m9 pay fbi'dtfl§)pll:in. NMFS Js not significantly involved in the project but will be revi~)i'\o'fng the Di~tri,pts (FISi!{§j,O's) work.