AP 05-15-08 Public Meeting
SOUTH TAHOE PUBLIC UTILITY DISTR CT
"Basic Services for a Complex World"
NOTICE OF PUBLIC MEETING
Thursday, May 15, 2008
6:00 P.M.
District Board Room
1275 Meadow Crest Drive, South Lake Tahoe, California
Richard Solbri , General Mana er
Mary Lou Mosbacher, President
BOARD MEMBERS
James R. Jones, Director
Eric W. Schafer, Director
This meeting is being held to gather public input. While a quorum of the South Ta oe Public
Utility District Board of Directors will attend, there will be no action taking place 0 their
behalf. The final budget is expected to be adopted at a Special Board Meeting on hursday,
May 29, at 2:00 p.m.
AGENDA
1. CALL PUBLIC MEETING TO ORDER
2. 2008/09 PROPOSED BUDGET
3. COMMENTS
4. ADJOURNMENT
Public participation is encouraged. The meeting location is accessible to people with disa ilities. Every
reasonable effort will be made to accommodate participation of the disabled in all of the Di trict's public
meetings. If particular accommodations for the disabled are needed (Le., hearing aids or other dis bility-related
aids), please contact the Clerk of the Board at (530) 544-6474, extension 6203, at least 24 hou s in advance
of the meeting.
South Tahoe Public Utility District · 1275 Meadow Crest Drive, South Lake Tahoe, CA 96150
Phone 530/544-6474. Facsimile 530/541-0614. www.stpud.us
SOUTH TAHOE PUBLIC
UTILITY DISTRICT
WELCOME
May 15, 2008
,
i
I SOUTH TAHOE PUBUC UTJUTY D~CT
2008/09 ,
,
BUDGET I
Presented by i
I
Rhonda McFarlane, Chief Financial Offi er
Paul Sciuto, Assistant General Manag r
1 2
A SOUND DISTRICT BUDGET
t ...p.. ROVIDES FINANCIAL
-f MEANS TO:
. Operate Safe and Reliable Water and
Wastewater Systems
. Protect Lake Tahoe's Environment
. Allocate District Resources Prudently
. Be Accountable to District Customers
SEWER ENTERPRISE FUN
Wastewater TlelItment Fad~ios - SoutI1 Ul~ Tahoe
1
~~~_~~~!ERPRISE FUND
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
Grona
:zollo
SenIk:e F_
45'11I
,,,,petty To_
33'11I
~ REVENUE..
Diamond Valley Ranch ~ Alpine County
~__~~!~_~~T~RPRISE 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)
2
t Cap~_<:it:y. Fees
. 103 Single Family Homes
. Large Commercial Projects
. Chateau: Convention Center Building A
. Van Sickle Bi-State Park Phase I
t~~~~~ ENTERPRISE FUND
Revenue
. Grant Funding
. State Non-Point Source Protection Grant
. Indian Creek TMDL $304,000
. California Tahoe Conservancy
. Best Management Practice (BMP)
Grant $70,000
11
I SEWER ENTERPRISE FUND
I
Revenue
. Property Taxes
. LAO Proposal to Shift Water District!
Property Taxes to Counties .
. Requires 2/3 Vote of the State Legi~lature
. District Customer Rates will be Cus~ioned
by the Rate Stabilization Reserve !
10
~_ SEWER ENTERPRISE FUND I
Revenue j
. Interest
. Rate lowered 100 basis points from 008
fiscal year
12
3
I TYPICAL RESIDENTIAL CUSTOMER
I
Sewer Rate
. $85.53 Per Quarter
. Change $4.08 Per Quarter
. Based on Cost of Service Model
"
I CUSTOMER RATES
I
. 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
15
I TYPICAL RESIDENTIAL CUSTOMER
._~t-~.._^ .- u ~_...__.._..~.....
Service Charges
. Customer Assistance Program
. Instituted Quarter 3 FY 2008
. 20% Discount to Low-Income Customers
. 189 Customers Enrolled
. Funded by Property Taxes
14
I
ANGORA FIRE HOMES DESTROYED
Service Charge Revenue
. 250 Customers
. 803 Sewer Units
. $272,000 Decrease in Annual Revenue
. End Date Scheduled for April 2010
16
4
~,"'. 2008/09 ,QUARTERLY SEWER
SERVICE FEES
$170/ .- . - ------'15Us
$150 V . __ $12U~~-
$130/ m $100,89
$110 V $S5.S3 .
$10 ~- ---
$70
$50
I
$30
$10
-$10
Souttl Incline T.hoe CIty ....... Klnpbury
T.hoe Vii.... T.h_
Note: Rall!s as rA April I, 2008,
~E~~~~NTERPRISE FUND
2008/09 Proposed Spending
Debt Servkle
7%
Oper8t1ons .
M11lnteftllllClll
24%
Capital
43%
, 2008/09 QUARTERLY SEWER
+?~~Y~~_~~~ES
South Tahoe P.U.D. Compared to
State Averages
$110/
$100/
$90'/.
$80'
$70/
$60<
$50/
$40/
$30/
$20/
$10/
$0
17
South Tahoe
18
California
t?~~ER ENTERPRISE FUND
Debt Service
. Total $2 Million
. Interest $1.1 Million
. Principal $900,000
. 2007 Union Bank Installment Sale
Agreement
. 2004 Certificates of Participation
19
20
5
:t-~~"YE~ ENTERPRISE FUND
CAPITAL PROJECTS
Presented by
Paul Sciuto
Assistant General Manager/Engineer
21
~__~~WER 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
23
~~_~,?_~?SET MANAGEMENT
. . District-wide methodology used to determine
the Capital Projects and effectively allocate
Capital Improvement dollars
. AAM minimizes the total cost of buying,
operating, maintaining, replacing, and
disposing of capital assets during their life
cycles
. Combines technolC?SlY and planning to create
a database to predict asset failure and
establishes optimal replacement schedules to
achieve service goals
22
J_..~~"YER ENTERPRISE FUND
i
2008/09 Capital Outlay $12 Million
. Collection System Master Plan $400,000
. WWTP TRPA Coverage Fee $225,000
. WWTP Future Connections Plan $225,000
2<
6
t SEWER E~-rERPRISE 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
. CoLine Evaluation $100,000
25
t SEWER ENTERPRISE FUND
f
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
27
i
I
I
I
I
I
I
I
1
I
-f SEW~~~~TERPRISE FUND
2008/09 Capital Outlay $12 Million
I,
. Diamond Valley Ranch (DVR) Irrigation
Fields $1 Million I
. Indian Creek Oxygen System/TMDL i
$700,000 I
. Nutrient Management Plan $200,000 1
. Monitoring Wells DVR/Alpine Co $100,OOt
. DVR Master Plan $50,000
,
I
26
~~;=:s: ~~:n .
. New Finance Position (50% sewerJ
. One-half Grant Administration
. One-half Accounting Position
. Cost about $35,000 i
. Less Reimbursements from Grant Progrars
, 28
7
,~ SE~~~~NTERPRISE FUND
Labor Costs $6.9 Million
. Impacted by Union Salary Survey
Implementation & Health Benefit Costs
. Salaries Up $374,000
. Benefits Up $371,000
29
I
t~~~~~ENTERPRISE FUND
Operations & Maintenance Costs
$7 Million
. UP $168,000
. Offsets to the Increases
. Power ($80,000)
. Refuse Disposal ($31,000)
. DVR Monitoring Fees ($45,000)
11
t~~~~~~1"ERPRISE FUND
Operations & Maintenance Costs
$7 Million
. UP $168,000
. RDA Tax Transfer $90,000
. CTS Mitigation $30,000
. Erosion Control $20,000
. Finance Advisory $38,600
. Legal Fees for DVR Contracts $20,000
30
~-
SEWER ENTERPRISE FUND
2000 to 2009 Operating Costs
Per Million Gallons of Wastewater
Excluding Depreciation
$12,000 ./r----- --~ $10,244-' -- -
$7,561
$10,000
. / $5,511
$8,000'" .c
...
$6,000 >'
$4,000 ...
$2,000 ./ -,
$0
2000 2000 CPr 20ft
Ad ....
32
8
SEWER ENTERPRISE FUND
,
I
WATER ENTERPRISE FUNq>
I
I
i
i
i
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
33
I WATER ENTERPRISE FUND
I
REVENUE
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
35
34
36
9
~.. WA~~.~ENTERPRISE FUND
2008/09 Revenue
Grants
25%
Senrice Fees
56%
Interest .
Other
7%
CapacIty
Fees
12%
)7
-f
I
CAPACITY 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
J'
~' WA!~~ENTERPRISE 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
J8
WATER ENTERPRISE FUND
Grant Funding
. California Proposition 50
. Water Conservation $250,000
. AI Tahoe Waterlines $2 Million
. California Tahoe Conservancy $250,000
. BMP
. Tahoe Restoration Act
. Erosion Control $154,000
. Waterlines $1 Million
. County Water Agency $280,000
""
10
t W~T~R ENTERPRISE FUND
Water Rate
. $116.22 Per Quarter
. $4.82 Change Per Quarter
. Rate Model Work in Progress
41
_f.}008!09gYARTERLY WATER SERVICE FEES
-- ..- $405,84
Incline South T.hoe ICIng.bury North Cave
Village T.hoe CIty Tahoe RDck
Note: Rates as d ApriIl, 2008.
43
~NGORA~!RE HOMES DESTROYED
Service Charge Revenue
. 250 Customers I
. $114,000 Decrease in Annual Reverue
. End Date Scheduled for April 2010 i
42
I 2008/09 QUARTERLY WATER SERVICE FEES
--+............ ..................-...........
,
South Tahoe P.U.D. Compared to
State Averages
South Tahoe
California
....
11
~ WATER ENTERPRISE FUND
2008/09 Proposed Spending
Debt Service
6%
Operetlons .
Malnten811C11l
21%
~__CA!'!!"~~m~~OJECTS
Paloma Well - AI Tahoe Area
capiul
49%
~.... WATER..~~TERPRISE FUND
Debt Service
. Total $1.2 Million
. Interest $408,000
. Principal $770,000
. 2001 Refunding
. 1999 laSalle Loan
.,
'16
~i WA!~~~~TERPRISE FUND
CAPITAL PROJECTS
2008/09
More From
Paul Sciuto
Assistant General Manager/Engineer
47
'8
12
4- WATER ENTERPRISE FUND
2008/09 Capital Outlay $9 Million
. Waterlines $3.4 Million
. AI Tahoe
. Tata Lane
. Julie Lane
. Granite/Iron Mountain
. In-house
49
WATER ENTERPRISE FUND
2008/09 Capital Outlay $9 Million
. Water Tanks $1.4 Million
. Angora Tank
. Country Club Tank
. Forest Mountain Recoating
51
~ WATE~!~IERPRISE FUND
2008/09 Capital Outlay $9 Million
. Wells $1.6 Million
. Arsenic Treatment System
. Booster Stations $900,000
. Twin Peaks
. Iroquois
. Forest Mountain Rehab
50
I
I
WATER ENTERPRISE FUND
2008/09 Capital Outlay $9 Million
,
I
. CMMS Software $200,000 :
. BMP Pump Station Erosion Control $Ito,ooo
. Engineering Staff & Expenses $11060,~00
. New Junior Engineering Position (50% W~ter)
. Cost about $50,000 !
. Less Savings In Construction Inspection Costs 1
52
13
I WATER ENTERPRISE FUND
I
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
53
WATER ENTERPRISE FUND
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 Permits $30,000
. UR Contractual Services $30,000
. Finance Advisory $20,400
55
t WATER ENTERPRISE FUND
I
Labor Costs $4.6 Million
. Impacted by Union Salary Survey
Implementation & Health Benefit Costs
. Salaries Up $196,000
. Benefits UP $191,000
..
__l_.~~T~R ENTERPRISE 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)
56
14
WATER ENTERPRISE fUND
.f WA!~~ENTERPRISE fUND
2000 to 2009 Operating Costs
PElrMiII,ori Gallons of Water Production
Excluding Depreciation
Stateline Tank - Statellne, CA
:zollO
:zollOCPI
....
57
..
I
OUT Of POCKET DAMAGES
(CUMULATIVE)
!~,
~t:1T~~
$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
. Recap Litigation
. Settlements
. Legal fees/costs
. Net to District
$69 Million
$28 Million
$41 Million
2005 2006 2007 2008
5'
60
15
J_J~~~/09~~gPOSED BUDGET
I
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
"
tTHANK y~..
The End
..
.2
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