05-08-01 Public HearingSOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Robert Baer, General Manager
Duane Wallace, President
Christopher Strohm, Director
BOARD MEMBERS
Mary Lou Mosbacher, Director
Richard Solbrig, Assistant Manager
James Jones, Vice President
Eric Schafer, Director
PUBLIC HEARING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
MAY 8, 2001
MINUTES
The Board of Directors of the South Tahoe Public Utility District met for a Public Hearing on May 8,
2001,7:00 p.m., at the City of South Lake Tahoe Council Chambers, 1900 Lake Tahoe Blvd., South
Lake Tahoe, California.
BOARD OF DIRECTORS:
Directors Wallace, Strohm,
Mosbacher, Schafer, Jones.
ROLL CALL
STAFF:
M. Alsbury, Cocking, Eckenrode, Henderson,
McFarlane, Minister, Noble, Rasmussen,
Solbrig, Taylor.
GUESTS:
Signed In: Joyce Blackstone, Janet McDougall.
Others: Minette and Joe Flynn, John Cefalu.
PUBLIC HEARING
7:00 p.m. PUBLIC HEARING
President Wallace opened the Public Hearing
at 7:04 p.m.
2001102 FISCAL YEAR BUDGETS:
SEWER ENTERPRISE FUND AND
WATER ENTERPRISE FUND
Open Hearing
PUBLIC HEARING MINUTES - MAY 8, 2001
PAGE - 2
Rhonda McFarlane and Richard Solbrig, with the
assistance of a slide show, presented the 2001/02
Fiscal Year Budgets for the Sewer and Water
Enterprise Funds. Planned expenditures and
revenues were explained.
McFarlane and staff answered questions from
the audience after the presentation.
Minette Flynn. questioned and/or received clarification
of the utility billing structure and the possibility of having
tenants receiving water/sewer bills. She thanked Rhonda
McFarlane for sending the letter regarding the District's
Annual Report costs and purpose. Mrs. Flynn opposed
the rate increase and use of District funds for the Annual
Report.
John Cefalu commented on the lack of public attendance
and the Tahoe Daily Tribune's reporting of District
activities. He questioned and/or received clarification on the
Alpine County contract, pending litigation, rate increases,
and the proposed headquarters building.
Jo¥ce Blackstone questioned and/or received clarification
on the B-line repairs, pending litigation, and Alpine County
negotiations.
Joe Flynn. questioned and/or received clarification on
redevelopment impacts to the District.
Director Mosbacher thanked the audience for their
comments and attendance and agreed more of the
public should attend the public hearing.
Director Strohm agreed more of the public should
attend and mentioned the District's efforts in placing
ads and announcements.
Director Jones, expressed his support of the budget and
commented on the District's financial efficiencies compared
to ten years ago.
Staff Report
Public Comments
Board Member Comments
9:05 p.m. ADJOURNMENT
PUBLIC HEARING MINUTES - MAY 8, 2001
PAGE - 3
Note: This Public Hearing was held to gather public
input. Meeting notices were published in the Tahoe
Daily Tribune on April 12 and May 4, 2001.
No Board action.
Duane Wallace, Board President
South Tahoe Public Utility District
ATTEST:
Katl~y S~arP~:~l]erk of Board
South Tahoe Public Utility District
By: Susan Rasmussen, Finance Assistant
SOUTH TAHOE
PUBLIC UTILITY DISTRICT
WELCOME
SOUTH TAHOE
PUBLIC UTILITY DISTRICT
2001/02
BUDGET AND LONG TERM
FINANCIAL PLANS
2
A SOUND DISTRICT BUDGET
PROVIDES FINANCIAL
MEANS TO:
· Operate Safe and Reliable
Water and Wastewater Systems
· Protect Lake Tahoe's Environment
· Allocate Our Resources Prudently
· Be Accountable to Our Customers
SEWER ENTERPRISE
FUND
3 4
SEWER ENTERPRISE FUND
2001/02 Budget Proposal
· Revenue $13.5 Million
· Operating Costs $10.1 Million
· Infrastructure Projects $7.2 Million
· Debt Service $2.5 Million
· 2% Overall Rate Adjustment
· Range of Change 1.3% to 2.9%
REVENUE
SEWER BUDGET
2001/02 Funding Sources
SEWER ENTERPRISE FUND
REVENUE
· Down $3.5 Million · No grant funding down $3.2 Million
· Connection fees down $516,000
· Service charge revenue up $212,000
· About the same: property taxes, interest
income, and miscellaneous income
7 8
Typical Residential Customer
Sewer Rate
· $71.01 Per Quarter
· Monthly Change 46 Cents
· 2% Adjustment
9
Other Customer Classes
· Commercial 2.9%
· Motel/Hotel 1.4%
· Restaurant 2.9%
· TrailedMobile Home Park 1.3%
10
2001/02 QUARTERLY
SEWER SERVICE FEES
South Tahoe I Incline Village
North Tahoe Tahoe City Kingsbury
2001/02 QUARTERLY SEWER
SERVICE FEES
South Tahoe P.U.D. Compared to State
South Tahoe California
11 12
SEWER ENTERPRISE FUND
Outstanding Borrowing
· Grant Anticipation Note Will Be Paid
Off in July 2001
· Balance Outstanding $2.3 Million
SEWER ENTERPRISE FUND
2001/02 Proposed Spending
13
14
SEWER ENTERPRISE FUND
CAPITAL PROJECTS:
Presented by
Richard Solbrig
Assistant General ManagedEngineer
SEWER ENTERPRISE FUND
2001/02 Capital Outlay $7.2 Million
· Export Pipeline $4.1 Million
· Pipeline section B DIP to end (2001
building season)
· Pipeline section B LPPS to USFS
Campground (2002 building season)
15 16
EXPORT PIPELINE MAP
El Dorado Co
LEGEND
~ Service Area
"C" line
Douglas Co
Alpine Co
17
SEWER ENTERPRISE FUND
2001/02 Capital Outlay $7.2 Million
· WWTP Improvements $1.2 Million · Covers for two sludge tanks
· Dewatering improvements
· 480V electrical switch gear
· Master Plan/Road/New District
Headquarters $750,000
· Road construction
· Planning & design costs
18
SEWER ENTERPRISE FUND
2001/02 Capital Outlay $7.2 Million
· Replace Hydro Truck $110,000
· Engineering Staff & Expenses
$503,000
SEWER ENTERPRISE FUND
Salary & Benefits
· Up 5.1%
· Wages up $185,000
· New position added for Equipment Repair
· Step raises and COLAs for existing
employees
· Benefits costs up $64,000
19 20
SEWER BUDGET
MAINTENANCE & OPERATIONS
e~TNO INCREASE OVER 2000/01
BUDGET
ACHIEVED - U'~ $473,000
· Electricity costs $230,000 (+20%)
· Natural gas costs $215,000 (+100%)
· Underground Repair (UR) grounds and
maintenance for easements $60,000
· Alpine County contract review $63,000
· UR pipes/covers/manholes ($50,000)
· UR inflow and infiltration ($50,000)
· Other net increases $5,000
21
SEWER ENTERPRISE FUND
1993 to 2002
Operating Costs Excluding Depreciation
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
S6,000,000
$0
1993 [] 2OO2
1993 CPi & Volume Adjusted
22
SEWER ENTERPRISE FUND
$1,000
Controlling Costs 1993 to 2002
Operating Costs Excluding Depreciation
[] 2002 [] 1993CPIAdjusted
SEWER ENTERPRISE FUND
FIVE YEAR FORECAST
23 24
EXPORT PIPELINE
Sections A and B Within Tahoe Basin
$35 Million Project
· Prior to the New Fiscal Year · $28 million spent
· All $10.6 million in federal funding
received or receivable
· District's remaining obligation for
matching $6.7 million
SEWER ENTERPRISE FUND
CAPITAL PROJECTS
Five Years Ending June 30, 2006
2001/02 $ 7,206,000
2002/03 6,355,000
2003/04 3,448,000
2004/05 3,343,000
2005/06 2,242,000
Total $22,594,000
25
26
SEWER ENTERPRISE FUND
CAPITAL PROJECTS
Five Years Ending June 30, 2006
SEWER ENTERPRISE FUND
CAPITAL PROJECTS
Five Years Ending June 30, 2006
· Changes From Last Forecast
· Force main rehabilitation $1 million
· Plant improvements $3.1 million
· De-watering, sludge tank covers,
miscellaneous
27 28
SEWER ENTERPRISE FUND
FUNDING SOURCES FOR
CAPITAL PROJECTS
SEWER ENTERPRISE FUND
PROJECTED RATES
Five Years Ending June 30, 2006
· Change 2 Percent Per Year
· Consistent With Previous Forecast
29
30
PROJECTED SEWER RATES
FIVE YEAR CHART
Quarterly
Typical Single Family Home with
Three Sewer Units.
SEWER ENTERPRISE FUND
Capital Reserves
· $12.8 Million Projected for 2006
· $191 Million Total Fixed Assets
Projected for 2006
· Ending Capital Reserve Represents
7% of Fixed Assets
31 32
SEWER ENTERPRISE FUND
Capital Reserves
· $12.8 Million Projected for 2006
· 91% of Capital Reserves are Needed
for Additional Export Pipeline
Replacement in 2020
· 9% of Capital Reserves are Available
for Other Projects and Subsequent
Export Pipeline Replacements in
2030 and 2046
33
WATER ENTERPRISE
FUND
34
WATER ENTERPRISE FUND
2001/02 Budget Proposal
· Revenue $8.6 Million
· Operating Costs $5.1 Million
· Debt Service $1.5 Million
· Infrastructure Projects $3.1 Million
· Sher Funding $519,000
· 3.5% Overall Rate Adjustment
REVENUE
35 36
WATER BUDGET
2001/02 Funding Sources
WATER ENTERPRISE FUND
REVENUE
· Down $466,000 · Grant funding down $672,000
· Connection fee revenue down $99,000
· Interest income down $96,000
· Consumption revenue up $171,000
· Rate adjustment adds $200,000
37
38
WATER ENTERPRISE FUND
REVENUE
· Grant Funding
· County Water Agency $210,000
· Sher Funding $519,000
~ Gardner Mountain (a.k.a. Valhalla): well,
pump station, trunk and transmission lines
RESIDENTIAL CUSTOMERS
Water Rate
· $97.05 New Quarterly Rate
· 3.5% Adjustment
· Change Amounts to $1.10 per
Month
· Adjustment Based on Cost of
Service Calculation
39 40
COMMERCIAL CUSTOMERS
Water Rates
· Change Based on Cost of Service
· Consumption charge 3%
· Metered commercial customers 2.5% to
4.5%
· Multi-family customers 3.5% to 4.5%
· Unmetered commercial customers 4.5%
2001/02 QUARTERLY
WATER SERVICE FEES
South Tahoe Cave Rock
Incline Village North Tahoe kTmgsbury
41
42
2001/02 QUARTERLY WATER
SERVICE FEES
South Tahoe P.U.D. Compared to State
lO0
80
40
20
0
SouthTahoe California
WATER ENTERPRISE FUND
I' I I I IIIII II I '11 III1~11!' II1'1'1111111
2001102 Proposed Spending
43 44
WATER ENTERPRISE FUND
CAPITAL PROJECTS:
More From
Richard Solbrig
Assistant General ManagedEngineer
WATER ENTERPRISE FUND
2001/02 Capital Outlay $3.1 Million
· Arrowhead Well Treatment $700,000
· Other Water Treatment $350,000
· Water Resource Exploration $325,000
· Water Resource Development
Henderson Well $150,000
45
46
WATER ENTERPRISE FUND
2001/02 Capital Outlay $3.1 Million
· Tanks $370,000 · Gardner Mountain $150,000
· Forest Mountain $100,000
· Echo View $20,000
· Coating Tata and Iroquois $50,000
each
WATER ENTERPRISE FUND
2001/02 Capital Outlay $3.1 Million
· Waterline Replacements $365,000
· Pipeline near Longs Drug Store
$3OO,0OO
· District installed lines in Al Tahoe
$65,000
47 48
WATER ENTERPRISE FUND
2001/02 Capital Outlay $3.1 Million
· Other · GIS software, GPS equipment, VFD,
vehicles and other equipment
· Engineering staff & expenses $330,000
WATER ENTERPRISE FUND
Salary & Benefits
· Up 4.6%
· Benefits costs up $44,000
· Wages up $75,000
· Equipment Repair position added $15,000
· Other increases from step raises and Cola
· Overtime decrease $47,000
49
50
WATER BUDGET
MAINTENANCE & OPERATIONS
GOAL: INCREASE EQUAL TO CPI
· ACHIEVED $'165, 000 DECREASE!
· Al Tahoe Private Well Claim ($200,000)
iPumps Water Tank Demolition ~
!$45o,ooo)
~nsurance and Other ($32,000)
· Electricity $100,000
· Lab Monitoring $57,000
· Water Meters $35,000
· Gardner Mountain (Valhalla) Well Lease
$25,000
51
WATER ENTERPRISE FUND
Controlling Costs 1993 to 2002
O )erating Costs Excluding Depreciation
[] ~ 995 CPI'*' Volume ^diusted
52
WATER ENTERPRISE FUND
Controlling Costs 1993 to 2002
)erating Costs Excluding Depreciation
[] 1993CPIAdjusted
53
WATER ENTERPRISE FUND
FiVE YEAR FORECAST
54
MTBE
· Full Cost Impact is Uncertain and is
Being Addressed in the Interim
Water Master Plan
· Success with the MTBE Lawsuit May
Provide Additional Resources
OUT OF POCKET DAMAGES
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
12/98 6/99 6/00 1/01 2002 2003 2004 2005 2006
[] Overhead [] Other
[] Interest [] Contractor
[] Professional Fees ~ Labor
55 56
WATER ENTERPRISE FUND
CAPITAL PROJECTS
Five Years Ending June 30, 2006
2001/02 $ 3,119,000
2002~03 2,791,000
2003~04 2,652,000
2004~05 1,955,000
2005/06 1,680,000.
Total $12,197,000
WATER ENTERPRISE FUND
CAPITAL PROJECTS
Five Years Ending June 30, 2006
57
58
WATER ENTERPRISE FUND
CAPITAL PROJECTS
Five Years Ending June 30, 2006
· Changes From Last Forecast · Waterlines up $1 million
· Water tanks down $1.2 million
· Water resource development/treatment
up $400,000
· Pump stations up $426,000: Cornelian
Booster Station
WATER ENTERPRISE FUND
FUNDING SOURCES FOR
CAPITAL PROJECTS
59 6O
PROJECTED WATER RATES
FIVE YEAR CHART
Quarterly
WATER ENTERPRISE FUND
Capital Reserves
· $2.2 Million Projected for 2006
· $2.3 Million Contingent Obligation
to the State for Sher Funding
· $49 Million Total Fixed Assets
Projected for 2006
· Ending Capital Reserve
Represents 5% of Fixed Assets
61
62
2001/02 PROPOSED BUDGET
Sewer & Water Combined
· Revenues $22 Million
· Operating Costs $16 Million
· Debt Service $4 Million
· Capital Spending $10.3 Million
,-Grant funded $519,000
SUMMARY
2001/02 Budget
· Rate Adjustments of 2% Sewer and
3.5% Water (Combined 2.7%)
· Operating Costs Excluding
Depreciation Up 3.8%
· 93% of the Change in Operating Costs
Are From Energy Price Increases
· Without Energy Price Impact Costs Are
Up .3%
63 64
Thank You
THE END
65
Daily
Thursday, April '12, 2001 50¢
Volume 44 · Number 74 · South'Lake.Tahoe, California _
and TRE ~ ~oE N~WS
PUblic Hea.ring
South Tahoe
public UtilityDistrict
Proposed Budget
: ~t~ng~~mbranoe 6a
May 8, 2001
7:00 p;m;~ ·
City Council ChamberS
1900 Lake Tahoe. Boulevard
Please join us for ou~ public hearing concerning
the District's Water and Sewer Enterprise Budgets
for the Fiscal Year Ending June30,' 2002.
The p~-oposed budget includes Upcoming proj-
ects, service improvements, infrastructure
replacement, and fee increases.
The proposed budgets, are available for reviewa~
the District Office~ '.1275 Meadow Crest brive, from
8:00 a.m. - 5:0Op.m. Monday through' Friday: