05-15-08 Public Meeting
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SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Richard Solbri , General Mana er
Mary Lou Mosbacher, President
BOARD MEMBERS
Paul Sciuto, Assistant Mana er
Dale Rise, Vice President
James R. Jones, Director
Eric W. Schafer, Director
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Ernie Claudio, Director
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PUBLIC MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
MAY 15,2008
MINUTES
The Board of Directors of the South Tahoe Public Utility District held a Public Meeting on
May 15, 2008, 6:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe,
California.
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BOARD OF DIRECTORS:
Vice President Rise, Claudio, Jones, Schafer. President
Mosbacher was absent.
ATTENDEES
STAFF:
Solbrig, Sharp, McFarlane, Sciuto, Frye, Cocking,
Marshall, Sherman, Henderson.
GUESTS:
John Runnels/Citizens Alliance for Responsible
Government, Marion Hale, John Cefalu, Pat Martin,
Vernon Dennis.
Rhonda McFarlane and Paul Sciuto gave a PowerPoint
presentation of the 2008/09 Fiscal Year Budgets for
the Sewer and Water Enterprise Funds, both of which
include a rate increase of 4%.
2008/09 FISCAL YEAR BUDGETS:
SEWER ENTERPRISE FUND AND
WA TER ENTERPRISE FUND
Staff and Board members received and responded to
several comments from the public pertaining to: the future
connections plan, solar improvements, redevelopment
amounts, the water conservation program and grant, and
the need for a rate increase.
~ No Board action was taken.
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PUBLIC MEETING MINUTES - MAY 15, 2008
PAGE - 2
8:05 P.M.
ADJOURNMENT
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South Tahoe Public Utility District
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May 15, 2008
SOUTH TAHOE PUBLIC
UTILITY DISTRICT
WELCOME
A SOUND DISTRICT BUDGET
I PROVIDES FINANCIAL
I MEANS TO:
i
. Operate Safe and Reliable Water and
Wastewater Systems
. Protect Lake Tahoe's Environment
. Allocate District Resources Prudently
. Be Accountable to District Customers
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i SOUTH TAHOE PUBLIC UTILITY DISTRICT
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2008/09
BUDGET
Presented by
Rhonda McFarlane, Chief Financial Officer
Paul Sciuto, Assistant General Manager
Wastewater Treatment Facilities - South Lake Tahoe
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I SEWER ENTERPRISE FUND
I
2008/09 Budget Proposal
Revenue: $22 Million
. Rate Adjustment: 4%
Operating Costs: $15 Million
Depreciation: $5 Million
Infrastructure Projects: $12 Million
Debt Service: $2 Million
SEWER BUDGET
2008/09 Funding Sources
Gr."ts
2....
s.mc. _
45'1\0
P"'perty r__
33'1\0
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~.. REVEN~!=_
DiaIl1Of1<l Valley Ranch - Alpine County
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-t-~~~~~~,-ERPRISE FUND
Revenue $22 Million
. Up in Total $1.3 Million
. Service Charges Up $404,000
. Capacity Fees Up $798,000
. Property Taxes Up $493,000
. Grants Down ($125,000)
. Interest Down ($209,000)
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~__~P~_~i_t:yFees
. 103 Single Family Homes
. Large Commercial Projects
. Chateau: Convention Center Building A
. Van Sickle Bi-State Park Phase I
f SEWER ENTERPRISE FUND
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Revenue
. Grant Funding
. State Non-Point Source Protection Grant
. Indian Creek TMDL $304,000
. California Tahoe Conservancy
. Best Management Practice (BMP)
Grant $70,000
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I SEWER ENTERPRISE FUND
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Revenue
. Property Taxes
. LAO Proposal to Shift Water District
Property Taxes to Counties
. Requires 2/3 Vote of the State Legislature
. District Customer Rates will be Cushioned
by the Rate Stabilization Reserve
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, SEWER ENTERPRISE FUND
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Revenue
. Interest
. Rate lowered 100 basis points from 2008
fiscal year
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3
_+-:!:Y!,!,~!:_~E.~IDENTIAL CUSTOMER
Sewer Rate
. $85.53 Per Quarter
. Change $4.08 Per Quarter
. Based on Cost of Service Model
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I CUSTOMER RATES
f
. The Water and Wastewater Industry
Have Generally Accepted Rate Setting
Techniques
. As a Public Entity All Rates Are Cost-
Based
. Equitable
. Meet Revenue Requirements
. Stable
IS
t TYPICAL RESIDENTIAL CUSTOMER
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Service Charges
. Customer Assistance Program
. Instituted Quarter 3 FY 2008
. 20% Discount to Low-Income Customers
. 189 Customers Enrolled
. Funded by Property Taxes
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! ANGORA FIRE HOMES DESTROYED
:
Service Charge Revenue
. 250 Customers
. 803 Sewer Units
. $272,000 Decrease in Annual Revenue
. End Date Scheduled for April 2010
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t.., , 2008/09",QUARTERL Y SEWER
SERVICE FEES
_..._.".~..._._...w_
$170 c" ~-- - $155.25
/
$150 / _
$130-
$110"'-/ $85.53
$10 r/
$70'-
$50"-
$30.
$10/
-$10
South Incline TahOll CIty North Kingsbury
Tahoe Village Tahoe
Note: Rates as of April!, 2008,
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4-~EWER ENTERPRISE FUND
2008/09 Proposed Spending
Debt Servlal
7%
Operations .
MalntenarlCle
24%
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Capital
43%
2008/09 QUARTERLY SEWER
SERVICE FEES
South Tahoe P.U.D. Compared to
State Averages
$110 .
$100/
$90'
$80-
$70'
$60'
$50'
$40<
$30"-
$20'
$10'
$0
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South Tahoe
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California
-L SEWER ENTERPRISE FUND
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Debt Service
. Total $2 Million
. Interest $1.1 Million
. Principal $900,000
. 2007 Union Bank Installment Sale
Agreement
. 2004 Certificates of Participation
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~~ER ENTERPRISE FUND
CAPITAL PROJECTS
Presented by
Paul Sciuto
Assistant General Manager/Engineer
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SEWER ENTERPRISE FUND
2008/09 Capital Outlay $12 Million
. WWTP Final Export Pumps $6 Million
. Rehab Secondary & Filter $300,000
. WWTP SCADA System & GIS Plant
$300,000
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~ ADVANCED ASSET MANAGEMENT
. District-wide methodology used to determine
the Capital Projects and effectively allocate
Capital Improvement dollars
. MM minimizes the total cost of buying,
operating, maintaining, replacing, and
dIsposing of capital assets during their life
cycles
. Combines technolo9Y and planning to create
a database to predict asset failure and
establishes optimal replacement schedules to
achieve service goals
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I SEWER ENTERPRISE FUND
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2008/09 Capital Outlay $12 Million
. Collection System Master Plan $400,000
. WWTP TRPA Coverage Fee $225,000
. WWTP Future Connections Plan $225,000
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~ SEWER ~~TERPRISE FUND
2008/09 Capital Outlay $12 Million
. Luther Pass Pump Station
Generator Replacement $200,000
. Luther Pass Pump Station
Transformers $100,000
. B-Line Re-vegetation $120,000
. C-Line Evaluation $100,000
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t?~~~~NTERPRISE FUND
2008/09 Capital Outlay $12 Million
. Engineering Staff & Expenses $1
Million
. New Junior Engineering Position (50% Sewer)
. Cost about $50,000
. Less Savings in Construction Inspection Costs
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i-~~~_~~~TERPRISE FUND
2008/09 Capital Outlay $12 Million
. Diamond Valley Ranch (DVR) Irrigation
Fields $1 Million
. Indian Creek Oxygen System/TMDL
$700,000
. Nutrient Management Plan $200,000
. Monitoring Wells DVR/Alpine Co $100,000
. DVR Master Plan $50,000
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~~~~ENTERPRISE FUND
Labor Costs $6.9 Million
. New Finance Position (50% Sewer)
. One-half Grant Administration
. One-half Accounting Position
. Cost about $35,000
. Less Reimbursements from Grant Programs
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~i S~~_~__E~,-ERPRISE FUND
Labor Costs $6.9 Million
. Impacted by Union Salary Survey
Implementation & Health Benefit Costs
. Salaries Up $374,000
. Benefits Up $371,000
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t SEWER ENTERPRISE FUND
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Operations & Maintenance Costs
$7 Million
. UP $168,000
. Offsets to the Increases
. Power ($80,000)
. Refuse Disposal ($31,000)
. DVR Monitoring Fees ($45,000)
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-t-_~~~~_~~,-_E~PRISE FUND
Operations & Maintenance Costs
$7 Million
. UP $168,000
. RDA Tax Transfer $90,000
. as Mitigation $30,000
. Erosion Control $20,000
. Finance Advisory $38,600
. Legal Fees for DVR Contracts $20,000
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SEWER ENTERPRISE FUND
2000 to 2009 Operating Costs
Per Million Gallons of Wastewater
Excluding Depreciation
$12,000 /-~ ~"$1ii;244
,,//- $7,561
$10,000 '
A$s5H-
$8,000 /' " '
$6,000 /-; ---
$4,000./ ,
$2,000 ./
$0
.oot
2000 CPI
Ad tod
,DOG
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SEWER ENTERPRISE FUND
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District Reserve Policy
. Maintaining Reserves are for:
. Future Capital Obligations
. Local Disasters or Catastrophic Events
. Establishing Credit Worthiness
. Insuring Against Significant Revenue Losses
. Cash Row Requirements
. Economic Uncertainties and Financial Hardships
. Unfunded Mandates
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+~~I.~~~~"fERPRISE FUND
2008/09 Budget Proposal
. Revenue: $16 Million
. Rate Adjustment: 4%
. Operating Costs: $8.5 Million
. Depreciation: $2 Million
. Infrastructure Projects: $9 Million
. Debt Service: $1 Million
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WATER ENTERPRISE FUND
~:_ REY~~Y~
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~; WA~~.~ ENTERPRISE FUND
2008/09 Revenue
Grants
25%
Interest &
Other
7%
Service Fees
56%
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~~~~~ITY FEES
. 101 Single Family Homes
. Large Commercial Projects
. Chateau: Convention Center Building A
. Van Sickle Bi-State Park Phase I
. Embassy Vacation Resort - Phase 4
Supplemental Fees
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~WA~~~_~NTERPRISE FUND
Revenue $16 Million
. Up $2.9 Million
. Service Charges up $479,000
. Capacity Fees up $963,000
. Interest Income down ($568,000)
. Grants up $2 Million
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WATER ENTERPRISE FUND
Grant Funding
. California Proposition 50
. Water Conservation $250,000
. AI Tahoe Water1lnes $2 Million
. California Tahoe Conservancy $250,000
. BMP
. Tahoe Restoration Act
. Erosion Control $154,000
. Water1lnes $1 Million
. County Water Agency $280,000
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I WATER ENTERPRISE FUND
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Water Rate
. $116.22 Per Quarter
. $4.82 Change Per Quarter
. Rate Model Work in Progress
<,
, 2008/09 QUARTERLY WATER SERVICE FEES
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Incline South T.hoe Kingsbury North ClIve
V111_ T.hoe CIty T.tloe Rock
Note: Rates as r:I April!, 2008.
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I ANGORA FIRE HOMES DESTROYED
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Service Charge Revenue
. 250 Customers
. $114,000 Decrease in Annual Revenue
. End Date Scheduled for April 2010
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I 2008/09 QUARTERLY WATER SERVICE FEES
.-I..-......-..-H....-........-.-..-...........
South Tahoe P.U.D. Compared to
State Averages
South T._
CilIIfomIa
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~... WATE~_E.~TERPRISE FUND
2008/09 Proposed Spending
Debt Senrice
60/0
Operations.
Maintenance
21 Of.
Paloma Well - AI Tahoe Ivea
Capital
49%
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~.' W~T~~ENTERPRISE FUND
Debt Service
. Total $1.2 Million
. Interest $408,000
. Principal $770,000
. 2001 Refunding
. 1999 LaSalle Loan
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~ '. W~TE.~~NTERPRISE FUND
CAPITAL PROJECTS
2008/09
More From
Paul Sciuto
Assistant General Manager/Engineer
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4-~~!~~.~r-4:r~RPRISE FUND
2008/09 Capital Outlay $9 Million
. Waterlines $3.4 Million
. AI Tahoe
. Tata Lane
. Julie Lane
. Granite/Iron Mountain
. In-house
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WATER ENTERPRISE FUND
2008/09 Capital Outlay $9 Million
. Water Tanks $1.4 Million
. Angora Tank
. Country Club Tank
. Forest Mountain Recoating
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I WATER ENTERPRISE FUND
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2008/09 Capital Outlay $9 Million
. Wells $1.6 Million
. Arsenic Treatment System
. Booster Stations $900,000
. Twin Peaks
. Iroquois
. Forest Mountain Rehab
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WATER ENTERPRISE FUND
2008/09 Capital Outlay $9 Million
. CMMS Software $200,000
. BMP Pump Station Erosion Control $110,000
. Engineering Staff & Expenses $1,060,000
. New Junior Engineering Position (50% Water)
. Cost about $50,000
. Less Savings In Construction Inspection Costs
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+~~"!ER_~~IERPRISE FUND
Labor Costs $4.6 Million
. New Finance Position (50% Water)
. One-half Grant Administration
. One-half Accounting Position
. Cost About $35,000
. Less Reimbursements from Grant Programs
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I WATER ENTERPRISE FUND
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Operations & Maintenance Costs
$4 Million
. O&M Up $308,000
. Meter Retrofits $250,000
. Customer Service Water Conservation $64,275
. Asset Management Consultant $45,000
. Power $39,000
. Operating Pennits $30,000
. UR Contractual Services $30,000
. Finance Advisory $20,400
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-t WATE~_~~TERPRISE FUND
Labor Costs $4.6 Million
. Impacted by Union Salary Survey
Implementation & Health Benefit Costs
. Salaries Up $196,000
. Benefits UP $191,000
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--1-- W~I~~~NTERPRISE FUND
Operations & Maintenance Costs
$4 Million
. O&M Up $308,000
. Offsets to the Increases
. Well Destruction Completion ($135,000)
. Erosion Projects Reduced ($125,000)
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WATER ENTERPRISE FUND
~~.,
%.#[ > 2000 to 2009 Operating Costs
ii .i, Per-f.1iIHon Gallons of Water Production
Excluding Depreciation
Statellne Tank - Stateline, CA
....
....CPI
.....
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-t- OUT o~~~~gAMAGES
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
f~
!~.~!BE
. Recap Litigation
. Settlements
. Legal fees/costs
. Net to District
$69 Million
$28 Million
$41 Million
2005 2006 2007 2008
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I 2008/09 PROPOSED BUDGET
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Sewer & Water Combined
. Revenue: $38.5 Million
. Rate Adjustment: 4%
. Operating Costs: $23 Million
. Depreciation: $7 Million
. Infrastructure Projects: $18 Million
. Debt Service: $3 Million
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