January 5, :00 AM. MERCED CIVIC CENTER 678 West 18th Street Merced, CA 95340
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1 744 W. 20th Street (95340) P.O. Box Merced, CA (209) MERCED IRRIGATION DISTRICT BOARD OF DIRECTORS MEETING BOARD OF DIRECTORS Jeff Marchini, - Division 1 Scott Koehn, Vice President/Secretary - Division 2 David Long, President - Division 3 Kevin Gonzalves - Division 4 Billy Pimentel - Division 5 John Sweigard - General Manager Phillip McMurray - General Counsel CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL January 5, :00 AM MERCED CIVIC CENTER 678 West 18th Street Merced, CA CONSIDER CORRECTIONS OR ADDITIONS TO THE AGENDA The Board will consider corrections or additions to the agenda of items requiring immediate action that have come to the attention of the Board after posting of the agenda. OPPORTUNITY FOR PUBLIC COMMENT (5 minutes per speaker) Interested persons in the audience are welcome to introduce any topic within the District's jurisdiction. Matters presented under this heading may be discussed but no action will be taken by the Board at this meeting. CONSENT CALENDAR All matters listed under Consent Calendar are considered routine by the Board of Directors and will be adopted by one action of the Board unless any Board Member has any question or wishes to make a statement or discuss an item. In that event, the President of the Board will remove that item from the Consent Calendar and place it for separate consideration. 1. Unapproved Minutes - December 13, Cash Transaction Report - November Treasurer's Report - November Out of State Travel Request No and ACTION ITEMS 1. MID Officer Elections The Board will elect officers for Resolution No The Board will review and consider adopting Resolution No authorizing the District's
2 General Counsel to file litigation in circumstances involving the theft of District power. REPORT ITEMS 1. Energy Resources and Hydroelectric Report 2. Water Resources Report ADJOURNMENT NOTE: No action may be taken on any items not appearing on this agenda unless: : There is a finding of an emergency situation by majority. : A two-thirds vote of the legislative body or a unanimous vote if less than two-thirds of the members are present. : An item was properly posted, but carried over for five days. Any materials that are public records that relate to an agenda item, and are distributed to the board of directors less than 72 hours prior to the meeting shall be available for public inspection at the offices of the Merced Irrigation District, 744 W. 20th Street, Merced, CA during normal business hours. Additionally, any materials presented during open session are available for public inspection at the same address.
3 MEETING OF THE BOARD OF DIRECTORS OF THE MERCED IRRIGATION DISTRICT DATE: 1/5/2017 AGENDA ITEM: Unapproved Minutes - December 13, 2016
4 MEETING OF THE BOARD OF DIRECTORS OF THE MERCED IRRIGATION DISTRICT DATE: 1/5/2017 AGENDA ITEM: Cash Transaction Report - November 2016 ATTACHMENTS: Description Cash Transaction Report - November 2016 Type Cover Memo
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17 MEETING OF THE BOARD OF DIRECTORS OF THE MERCED IRRIGATION DISTRICT DATE: 1/5/2017 AGENDA ITEM: Treasurer's Report - November 2016 ATTACHMENTS: Description Treasurer's Report - November 2016 Type Cover Memo
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19 MEETING OF THE BOARD OF DIRECTORS OF THE MERCED IRRIGATION DISTRICT DATE: 1/5/2017 AGENDA ITEM: Out of State Travel Request No and ATTACHMENTS: Description Out of State Travel Request No and Type Backup Material
20 Travel and Conference Authorization Form This form shall be completed by the employee and authorized by the appropriate personnel prior to commencement of the travel. This form is for travel expenses over the amount of $100. Please review Administrative Policy on Travel and Meeting Expenses prior to planning your District travel. Name: _Rich Dragonajtys Employee No.: _1512_ Event Dates: _2/28/17 From _3/3/17_ Location: _Atlantic Beach, Florida To Purpose of Travel: _Attend the 2017 TEA Energy Symposium and User Group Conference- Participate in and understand energy issues and TEA's expertise to assist us in achieving MID objectives. Exempt: Y/N Estimated Straight Labor Hours: Estimated Overtime Labor Hours: ---- Estimated Travel Expenses: Please attach program agenda, confirmations, proof of budgetary funds available, and/or other applicable details. Registration _o Lodging total $660 Compare total lodging at pre-negotiated rate, if applicable Transportation total $1545 Airfare $1200 Mileage (roundtrip mileage X Current IRS rate) Other transportation Baggage& Parking $345 Estimated Meals and Incidental (M&IE) Expenses: ~. Per diem rate: No. of overnight stay _3 (For current per diem rate, see per diem table at (Only applies to travel with an overnight stay. See Travel and Employee Expense Reimbursement Policy for other requirements.) D Capped reimbursement (Only applies to same day travel. See Travel and Employee Expense Reimbursement Policy for limitations.) Estimated M&IE expenses for capped reimbursement: Complete below only for same day travel. Total M&IE _$ Lunch other incidentals Dinner* ---- *Only if event ends 6 p.m. or later Total Estimated Travel Expenses: $ AUTHORIZATION SIGNATURES Direct Supervisor Department Head General Manager Date Date l Z. J I Jllo Date \2 '3 Jf 4
21 MERCED I I I IRRIGATION I WI I..., DISTRICT WATER & POWER TO: FROM: RE: DATE: Don Ouchley Rich Dragonajtys Out of State Travel Request November 21, 2016 The Energy Authority (TEA) hosts an Energy Symposium & User Groups function every year and I would like to attend again this year in order to gain more information regarding the future risk management policy and energy issues related to our possible interconnection with CAISO. I was formally invited because of MElD's existing relationship with TEA, and the potential to utilize them for future projects remains open and ongoing. The TEA 2017 Energy Symposium and User Groups meeting will be held March 1-3, 2017 in Atlantic Beach, Florida. TEA has a lot of expertise at their headquarters in Jacksonville and in addition to attending the symposium I would like to visit with appropriate personnel there to gain their input on our issues. TEA has staff with specific knowledge on CAISO who can help us in our evaluation of future power supply options. Last year' s symposium provided excellent insights into the competitive and regulatory issues facing electric utilities today, and the strategies that some of TEA' s clients implemented to address them. In addition to the two day Symposium, this year I plan to attend an extra day to participate in the Pre-Symposium User Groups and then tour the TEA offices and trading floor. Let me know if you want to discuss or need additional information. Energy Resources travel/registration budgets have adequate funds left over for this request. Sincerely, Rich Dragonajtys
22 ." ' p I Travel and Conference Authorization Form This form shall be completed by the employee and authorized by the appropriate personnel prior to commencement of the travel. This form is for travel expenses over the amount of $100. Please review Administrative Policy on Travel and Meeting Expenses prior to planning your District travel. Name: ~K=E~V~IN~L~M~A~L=O~N=E~ Employee No.: ---=1=5-=-0=1 Event Dates: --=1/'-"3=1"-'/1:..:7:. ---=2/-=3;L.;/1:.:7_ From To Location: -----=S:..::c:.:::o..:..tto.:::s-=d=-a:..::le'-'A-"Z= Purpose of Trave I: ;_A:.:...P"'-P'-'A...:::O::...V:...:E:..:.R.:..:..H.:..::E:..:...A=D'-D=IS'-'"T.:...:R.:..::I B~U~IT..:...O=.:...:N...:::S::...:.Y-=S..:...T=E Mc.:.=S...:::c:.:::o-=u.:...:rs:..::e:...:t:..:...ra::..:i.:...:n.:.:..i n=g, Exempt: y(r;) Estimated Straight Labor Hours: 1Q_ Estimated Overtime Labor Hours: 8 Estimated Travel Expenses: Please attach program agenda, confirmations, proof of budgetary funds available, and/or other applicable details. Registration $1, Lodging total /night =$1, Compare total lodging at pre-negotiated rate, if applicable x Transportation total $ Airfare $ Mileage (roundtrip mileage X Current IRS rate) Other transportation car rental $170.00/5 days Estimated Meals and Incidental (M&IE) Expenses: ~ Per diem rate: No. of overnight stay 3_ {For current per diem rate, see current year per diem rates document at I:Forms and Tables (Only applies to travel with an overnight stay. See Travel and Employee Expense Reimbursement Policy for other requirements.) D Capped reimbursement {On ly applies to same day travel. See Travel and Employee Expense Reimbursement Policy for limitations.) Estimated M&IE expenses for capped reimbursement: Complete below only for same day travel. Total M&IE.10g A 5 ~ oj15 Lunch ---- other incidentals ---- Dinner* ---- * Only if event ends 6 p.m. or later Total Estimated Travel Expenses: ~ 22\~ 5 _,., \)-$0-1" Date Department Head Date I t..hj He General Manager
23 MERCED... I I I IRRIGATION I Y I I I_, DISTRICT WATER & POWER TO: FROM: RE: DATE: Don Ouchley Juan C. Sandoval Out of State Travel Request December 1, 2016 I am requesting your authorization to schedule Kevin Malone to attend APPA's Overhead Distribution Systems training course to be held in Scottsdale, Arizona on January 31 through February 3, This training will allow Mr. Malone to gain a better understanding of the planning, des ign, installation, and maintenance principles of overhead distribution practices. The course topics will help Mr. Malone to resolve distribution design issues he deals with on a daily basis such as : design criteria and regulatory requirements of overhead lines; NESC requirements; purpose and proper methods for grounding, insulation coordination; sag and tension calculations; how to select, design and install an appropriate overhead line conductor; etc. This training is not available in California. Funds are available in the 2016/17 budget to pay for this training. Manager, Engineering and Op
24 MEETING OF THE BOARD OF DIRECTORS OF THE MERCED IRRIGATION DISTRICT DATE: 1/5/2017 AGENDA ITEM: The Board will elect officers for 2017.
25 MEETING OF THE BOARD OF DIRECTORS OF THE MERCED IRRIGATION DISTRICT DATE: 1/5/2017 AGENDA ITEM: The Board will review and consider adopting Resolution No authorizing the District's General Counsel to file litigation in circumstances involving the theft of District power. RECOMMENDED ACTION: Staff recommends the Board adopt Resolution No , authorizing the District's General Counsel to file litigation in circumstances involving the theft of power, as presented. BACKGROUND: The District owns and operates a retail electric system in eastern Merced County, offering both residential and commercial customers in and around the communities of Merced, Atwater and Livingston the opportunity to purchase competitively priced public power. As the Board and public are fully aware, the District currently imports its power for resale through a power purchase agreement with the Turlock Irrigation District (TID). As the power is metered into the District s system from TID, it is sent to customers for their use. The District pays TID for the power brought in, and the District charges its individual customers for the amount of power that they each use, all on a monthly basis. It is not uncommon for the District, or any other power provider, to experience isolated instances of power theft. There are a variety of means that have been used to steal power, but it typically involves the installation of wiring or some other device or system intended to bypass the customer's electric power meter installed by the District. The bypass allows the customer to use more power than is tracked and accounted for by the meter, and then billed. These power thefts have an obvious negative impact on the District and its customers because the District has already purchased the power that was stolen. Therefore, the District s other customers necessarily have to pay for the power that was stolen by someone else. The impact that power thefts have on the District, including impacts to risk, revenue and ultimately the District's utility rates, depend on the circumstances of each theft and the amount of power stolen. Additionally and over time, there is a significant cumulative impact that these thefts have on the District and its customers. Recently, staff has noticed that there have been an increasing number of situations discovered that involve the theft of power from the District. Typically, recent thefts have been associated with the illegal growing of marijuana. Fairly intricate and borderline professional installations have bypassed District meters, sometimes resulting in hundreds of thousands of dollars in stolen District power. As each situation has arose, District staff has worked closely with the appropriate authorities including law enforcement and the District Attorney, to pursue criminal charges and receive restitution. Recovery through the criminal process is only part of the effort however, it is usually in the District s best interest to file a civil complaint against each thief demanding payment for the stolen power, attorneys fees and any other resulting damages. In communicating with local authorities and outside litigation counsel for the District, staff believes that the process to recover payment for the stolen power and be made completely whole will be expedited significantly if litigation may be filed as soon as sufficient facts are available to warrant filing. If the District is able to move more quickly, court documents can be filed and served on the alleged thief (thieves) while their whereabouts are still known and before he/she is able to leave the area. Prompt filing allows for earlier and more complete discovery of the assets of an alleged thief, making it more likely that the District will be repaid. Additionally and importantly, prompt filing sends a strong signal to not only potential thieves, but also law enforcement officials and our community that the District considers the theft of power a serious issue and it intends to enforce its rights to protect its customers aggressively. Under the theft of power law (California Civil Code sections ), a public utility (including a public agency like the District), may sue for a judgment for treble damages and attorneys fees if a customer (1) diverts utility services, (2) prevents a meter from accurately measuring usage through tampering or other means, (3) tampers with utility property, or (4) uses or receives benefits from tampering, diversion, or unauthorized connections. Civ. Code, , In fact, the law creates a presumption of violation of section if the customer s premises has an altered or bypassed meter, or has any instrument, apparatus, or device primarily designed to be used to obtain utility service without paying the full lawful charges. Civ. Code, Accordingly, in cases where there are assets to recover the District is in a strong position to file suit and enforce its rights. In addition to Civil Code provisions, there may also be
26 breach of contract claims against the Customer under the District s Electric Rules. For all of these reasons, staff recommends that the Board authorize its General Counsel to promptly file litigation in circumstances involving the theft of power. Instances where litigation may be filed will typically be based on California Civil Code provisions and/or the District s Electric Rules. Discretion will be used prior to initiating any litigation considering the facts of each situation, the potential cost of litigation and the likelihood of potential recovery. Consideration would be given to a defendant with assets or who is an owner rather than a renter, and in some cases, litigation may not be filed when the potential for recovery is unlikely. However and in every case, at a Board meeting promptly following any initiation of litigation, General Counsel would provide the Board with notice of any action taken and a detailed summary of the underlying case. The District s General Counsel and staff will be available at the Board's meeting to discuss this item in more detail. ALTERNATIVES/PROS AND CONS OF RECOMMENDED ACTION: PROS: More timely pursuit of the recovery of stolen District funds. More prompt filing of civil litigation makes it more likely that court documents may be prepared, filed in court, and served while the whereabouts of the alleged thief is still known and before they are able to leave the area. Sends a strong signal to potential thieves, the community and law enforcement officials that the District intends to enforce its rights swiftly and aggressively to protect its customers. CONS: None, since in every case General Counsel would provide the Board with notice of any action taken and a detailed summary of the underlying case. ALTERNATIVES: Continue status quo - do not authorize General Counsel to file litigation in instances of power theft. Under the status quo, General Counsel and District staff will continue to bring instances of power theft to the Board and request individual authorizations for the filing of litigation. DEPARTMENT CONCURRENCES: The District's Legal and Energy Resources department concurs with the recommended action. ATTACHMENTS: Description Resolution No Type Resolution Letter
27 MERCED IRRIGATION DISTRICT RESOLUTION NO RESOLUTION AUTHORIZING THE DISTRICT TO FILE LITIGATION INVOLVING THE THEFT OF POWER WHEREAS, the District has experienced and increased rate of theft of power due in many cases to the cultivation of marijuana; WHEREAS, the District has a need to prevent, or lessen, instances of theft of power to protect its ratepayers from unnecessary losses; WHEREAS, the District intends to strictly enforce its rights in instances of theft of power in order to ensure that the District is made whole to the greatest possible extent; WHEREAS, the Board of Directors ( Board ) for the Merced Irrigation District ( District ) met and considered the presentation of Staff with respect to the need for prompt action to be taken against those who commit theft of power violations with the District; and WHEREAS, the Board has concluded that a standing authorization for the District s General Counsel to initiate litigation promptly is in the best interest of the District and its ratepayers. NOW, THEREFORE, BE IT RESOLVED THAT: 1. The facts contained in the recitals above are true and correct, and the Board so finds and determines. 2. The Board authorizes the District s General Counsel, on a continuing and ongoing basis to exercise his or her discretion to promptly initiate all necessary means of recovering damages due to instances of theft of power. This authorization shall include the commencement of civil actions in the appropriate court against all potentially liable entities or individuals. 3. General Counsel shall, in all instances of theft of power described herein, report to the Board all actions taken pursuant to this Resolution at the next regular meeting of the Board. 4. The Board authorizes the General Counsel and any such employees or consultants as the General Counsel may designate, to execute such additional agreements and/or documents, and to take such additional actions as may be reasonably necessary or convenient to carry out and implement the intent of this Resolution.
28 PASSED AND ADOPTED by the Board of Directors of Merced Irrigation District this 5th day of January, 2017, by the following vote. Ayes: Noes: Abstain: Absent: Directors: Directors: Directors: Directors: Dave Long President Merced Irrigation District Scott Koehn Vice President/Secretary Merced Irrigation District
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