SOUTH FEATHER WATER & POWER AGENCY AGENDA Regular Meeting of the Board of Directors of the South Feather Water & Power Agency Board Room, 2310 Oro-Quincy Highway, Oroville, California Tuesday; August 22, 2017; 2:00 P.M. A. Roll Call – B. Approval of Minutes – Regular Meeting on July 25, 2017 (Tab 1) C. Approval of Checks/Warrants (Tab 2) D. Public Participation Individuals will be given an opportunity to address the Board regarding matters within the Agency’s jurisdiction that are not scheduled on the agenda, although the Board cannot take action on any matter not on the agenda. Comments will be limited to 5 minutes per speaker. An opportunity for comments on agenda items will be provided at the time they are discussed by the Board. Comments will be limited to five minutes per speaker per agenda item. E. Staff Reports (Tab 3) F. Directors’ Reports Directors may make brief announcements or reports for the purpose of providing information to the public or staff, or to schedule a matter for a future meeting. The Board cannot take action on any matter not on the agenda and will refrain from entering into discussion that would constitute action, direction or policy, until such time as the matter is placed on the agenda of a properly publicized and convened Board meeting. G. Business – (Tab 4) CalPERS Resolution Fixing Employer’s Contribution for Health Care Regulations require adoption of maximum employer contribution amount by the Agency. H. Closed Session – (Tab 5) Conference with Legal Counsel – Existing Litigation (Government Code §54956.9(d)(1)): Bay-Delta proceedings, including the California WaterFix, the associated environmental document and change petition pending before the State Water Resources Control Board, and the planned update to the Bay-Delta Water Quality Control Plan. Conference with Legal Counsel – Anticipated Litigation (Government Code §54956.9(d) (2) :) Significant exposure to litigation pursuant to paragraph (2) OF SUBDIVISION (D) OF Government Code section 54956.9: one potential case; Existing Facts and Circumstances: Lost Creek Dam Crest Modification Pending and Potential Contractor Claims. Conference with Legal Counsel – Anticipated Litigation (Government Code §54956.9(d) (2) :) Significant exposure to litigation pursuant to paragraph (2) OF SUBDIVISION (D) OF Government Code section 54956.9: one potential case; Existing Facts and Circumstances: Kelly Power House Turbine Shutoff Valve Pending and Potential Engineering and Contractor Claims. I. Adjournment MINUTES of the REGULAR MEETING of the BOARD of DIRECTORS of SOUTH FEATHER WATER & POWER AGENCY Tuesday, July 25, 2017, 2:00 P.M., Agency Board Room, 2310 Oro-Quincy Hwy., Oroville, California DIRECTORS PRESENT: Jim Edwards, Tod Hickman, Dennis Moreland, John Starr, Lou Lodigiani DIRECTORS ABSENT: None STAFF PRESENT: Rick McCullough, Foreman; Steve Wong, Finance Division Manager; Matt Colwell, Water Division Manager; Art Martinez, Manager of Information Systems; Rath Moseley, General Manager, Scott Alcantara, Risk Manager, Dan Leon, Power Division Manager, Dustin Cooper, Legal Counsel STAFF ABSENT: None OTHERS PRESENT: Steve Onken, Pat Miller, Anna Devore, Pt Koskinen, Jolini Hihbert, Rick Wulburn, David Miller, William Bynum, Donald Hume CALL TO ORDER President Edwards called the meeting to order at 2:02 p.m., and led the Pledge of Allegiance. APPROVAL OF MINUTES M/S/Unanimous (Lodigiani/Moreland) approving the Minutes of the regular meeting of June 27, 2017. APPROVAL OF CHECKS AND WARRANTS M/S/Unanimous (Lodigiani/Moreland) approving the total General Fund and Joint Facilities Operating fund expenditures for the month of June, 2017 in the amount of $5,457,670.99; approval of Power Division expenditures for the month of June, 2017 in the amount of $303,659.31; and, authorize the transfer of $4,500,000.00 from the TCB General Fund to the TCB Accounts Payable and Payroll Fund for the payment of regular operating expenses. PUBLIC PARTICIPATION Rick Wilburn communicated that he would like to see more water available in Palermo. Asked about any plans to extend a main line to serve more homes and if there was a possibility to use Federal Funding. Bill Bynum also inquired about water to Lone Tree Road and expressed interest in an Ad Hoc committee to work on the water expansion in the Palermo area. Donald Hume communicated that he does not think the agency embraces the mission statement. Insurance company’s do not recognize the current hydrants. Mr. Hume stated he would like to see water in Bangor. Jack Kiely handed out documentation around water rates throughout the state of California. Mr. Kiely cited examples of water rates across the state and who contracts water. Communicated details around the Metropolitan water district and who should be helping pay for the Oroville spillway repairs. He stated that if we added $2.00 per household in that served region it would generate >$2.0M to help with repairs. Mr. Kiely finished with stating that he would like to see the water used locally rather than transferring south. GENERAL MANAGER'S REPORT The General Manager communicated the following: Wall Fire As the Board is aware, the community experienced another challenge this calendar year with the Wall fire that started on July 7, 2017. The fire was within the Agency’s sphere and many of our customers lost homes and other structures. Water delivery infrastructure faced minimal impact; however, a significant problem surfaced as a result of the fire on treated water delivery from the Bangor plant. Many residences pumped water straight out of the ditches in an attempt to save property without issue, but, there were two properties that increased usage via the domestic treatment plant and the system could not keep up with the demand to process raw water. The package plant ran full time and was not able to maintain storage and delivery per demand pull. This highlights two factors: 1) during an emergency event such as fire it is possible to not be able to deliver domestic water to the current 23 customers being served, 2) Expansion of treated water delivery as designed will not support additional customers. The upcoming winter months may also increase sludge and foreign materials entering the open ditch system as a result of the burnt surroundings so a focus on access and cleaning will be critical. The Agency currently has 12 applications for new service in Bangor and many others have reached out inquiring about availability. The team will be evaluating new technologies for water treatment and submitting findings to the board for review. Another customer inquiry has also increased since the fire and that is added fire hydrants. Many customers are now looking at their surrounding areas and searching for the possibility of adding hydrants near their homes. Agriculture Users Group During the June board meeting it was communicated that the Agency will re-engage policy #411 and establish an agricultural water user’s advisory committee. Currently there are three volunteers for this committee and will kick off an initial meeting in August. If any board member has a recommendation for additional participant’s, please communicate and I will reach out to them for interest. Lost Creek Project Phase II Update • Focus is on bridge deck removal to the mid-point of structure • Concrete pier saw cut and removal • North access dam wall structure • DSOD site visit July 12th – Pleased with work progress – No findings • FERC site visit July 13th – Appreciated seeing the work sequence plan in action – Concerned about dam facing corrective actions that need to be addressed • Monthly progress meeting with PG&E conducted on July 19th FINANCE DIVISION MANAGER’S REPORT The finance manager communicated the following: South Feather Relicensing Consulting Services No invoices have been submitted this month by HDR for relicensing consulting services. Total payments to HDR for relicensing services rendered through May 27, 2017 amount to $5,200,655. The budget balance remaining under Task Order 001, Management Plan Development, is $18,355. CalPERS Health Insurance Premiums The 2018 health insurance premium rates have been announced by CalPERS and all of the plans available to Agency employees will see a slight decrease from the 2017 rates. The 2018 cap will be $2,231.95 per month, a 4.5% decrease from 2017. The open enrollment period is from September 11 to October 6, 2017. CalPERS Annual Unfunded Accrued Liability Payment The Agency has been invoiced by CalPERS for the annual payment towards its unfunded accrued liability. The required contribution for this year is $166,144. In 2016, the amount was $130,682. Consistent with our practice in previous years, the entire annual unfunded accrued liability amount will be prepaid, saving the Agency $6,117. 2018 Budget The proposed 2018 Budget Calendar is attached for your reference. The Finance Committee, comprised of Directors Lodigiani and Starr, is scheduled to review the Proposed Budget on Thursday, November 16, 2017, with adoption by the full Board at your November 28, 2017 regularly scheduled meeting. POWER DIVISION MANAGER’S REPORT The Power Division Manager communicated the following: Operations The Power Division Summary Report for June 2017, reservoir storage charts, and Forbestown precipitation chart are attached. The total precipitation measured this season at Forbestown on June 19 is 0.0 inches. The 2012-2016 average rainfall for this period is 0.0 inches. The current precipitation season began on July 1, and ends on June 30, 2018. Ponderosa Reservoir and Forbestown Diversion Dam are spilling. The South Fork tunnel is open and the Slate Creek tunnel is closed. Powerhouse availability and performance for June, 2017 is summarized in the table below: Capacity Availability Generation Hrs. Generation Hrs. Powerhouse MW Percent Full Load (Note 1) Partial Load (Note 1) Woodleaf 60.0 66.7 117 330 Forbestown 37.5 100 111 325 Kelly Ridge 11.0 0.0 0.0 0.0 Sly Creek 13.0 92.2 3.0 303 Maintenance Woodleaf Powerhouse • Powerhouse is fully available and operational, and currently derated to 40 MW.