04-28-05 Public Meeting
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SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Richard SOlbri~, General Mana~er
Eric Schafer, President
BOARD MEMBERS
Paul Sciuto, Assistant Manai:"
Duane Wallace, Vice President
James R.Jones, Director
Mary Lou Mosbacher, Director
Tom Comte, Director
PUBLIC MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
APRIL 28, 2005
MINUTES
The Board of Directors of the South Tahoe Public Utility District held a public meeting,
April 28, 2005, 6:00 P.M., City Council Chambers, 1900 Lake Tahoe Boulevard, South Lake
\., Tahoe, California.
BOARD OF DIRECTORS:
President Schafer, Directors Jones, Wallace, Comte,
Mosbacher.
ROLL CALL
STAFF:
Sciuto, McFarlane, Callian, Cocking, Coyner,
M. Alsbury, Henderson.
GUESTS:
Marjorie and Melvin Springmeyer, Roger Thomas,
Mitch Malone
Rhonda McFarlane and Paul Sciuto gave a Power
Point presentation on the 2005/06 Fiscal Year Budgets
for the Sewer and Water Enterprise Funds. Planned
revenue and expenditures were explained.
2005/06 FISCAL YEAR BUDGETS:
SEWER ENTERPRISE FUND AND
WATER ENTERPRISE FUND
McFarlane and Sciuto responded to several
comments from the audience on projects not
related to the 2005/06 Fiscal Year or forecasted
in the 10-Year Plan.
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PUBLIC MEETING MINUTES - APRIL 28, 2005
PAGE-2
President Schafer thanked the audience for their
,-,interest and also thanked Rhonda McFarlane
and her staff for their hard work in preparing the
presentation.
No Board action was taken.
7:37 P.M.
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ATTEST:~D-~~~(.<;)-1f/l /:)
Kathy Sharp, rk of the Boifd
South Tahoe Public Utility District
By: Jeri Callian, Assistant Board Clerk
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ADJOURNMENT
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SOUTH TAHOE PUBLIC
UTILITY DISTRICT
WELCOME
,. SOlJTH TAHOE PUBLIC lITILITY DISTRICT
2005/06
BUDGET AND LONG-TERM
FINANOAL PLANS
April 28, 2005
A SOUND DISTRICT BUDGET
.1 ~~~i~:ANANQAL___
".: SEWER ENTERP~?~ FUND
. Operate Safe and Reliable Water and
Wastewater Systems
. Protect Lake Tahoe's Environment
. Allocate District Resources Prudently
. Be Accountable to District Customers
Wastewllll!r Treatment Fadlltl.. - South Lake Tahoe
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, SEWER ENTERPRISE FUND
2005/06 Budget Proposal
Revenue: $17.6 Million
Rate Adjustment: 3.5%
. Operating Costs: $12.4 Million
Depreciation: $4.5 Million
. Infrastructure Projects: $5.6 Million
Debt Service: $1.2 Million
., SEWER BUDGET_....
2005/06 Funding Sources
Grants
1%
Capeclty ,..
14%
ServIce ,..
41%
In_.
0tIMIr
4%
Property T_
26%
~. REVENUE
HaIVey Place Dam and Reservoir - Alpine County
, SEWER ENTERPRISE F~~p
Revenue
. Up in Total $1.8 Million
. Property Taxes Up $318,000
. Capacity Fees Up $1.2 million
. Service Charges Up $367,000
. Other Down $93,000
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SEWER ENTERPRISE FUND
Revenue
. Grant Funding
. State Non-Point Source Protection Grant
$125,000
. Snowshoe Thompson Ditch #1 Piping
,. ..' 2005/06 QUARTERLY SE.W...E. R
..1"., SERVICE FEES
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_ NorIIo JncII...,.._ CIty ICIn...."
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'~ TYPICAL RESIDENTIAL CUSTOMER
Sewer Rate
. $74.97 Per Quarter
. Change $2.55 Per Quarter
to
,!............ 2005/06 QUARTERLY SE'N... '. E.... R
"I~ll"" SERVICE FEES
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South Tahoe P.U.D. Compared to
State Averages
South Tallo.
California
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~- SEWER ENTERPRISE FUND
2005/06 Proposed Spending
DebtSeMea
6%
Operations.
Maintenance
31%
Labor
34%
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!. SEWER ENTERPRISE FUND
CAPITAL PROJECTS
Presented by
Paul Sciuto
Assistant Manager/Engineer
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-,. SEWER ENTERPRISE FUND
Debt Service
. Interest $620,500
. Principal $566,100
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~,~ SEWER ENTERPRISE F~~'p_
2005/06 Capital Outlay $5.6 Million
. Export Pipeline $1.5 million
. Section B: LPPS to USFS Campground
. Wildwood Sewer Interceptor $700,000
. Beecher Street Pump Station $125,000
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SEWER ENTERPRISE FUND
2005/06 Capital Outlay $5.6 Million
. Recycled Water Use Master Plan
& Improvements $160,000
. Snowshoe Thompson Pipeline
$500,000
. Indian Creek Reservoir Oxygen
System $200,000
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.,. SEWER ENTERPRISE FUN!)
2005/06 Capital Outlay $5.6 Million
. Wastewater Treatment Plant Main
Control Panel $400,000
. Engineering Staff & Expenses
$772,750
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! SEWER ENTERPRISE FUND
2005/06 Capital Outlay $5.6 Million
. Future Connection Plan $300,000
. Luther Pass Pump Station Evaluation
$150,000
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SEWER ENTERPRISE FUND
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Labor Costs
. Up 6%
. Reorganization Salaries Up $52,424
. Other Salaries Up $150,000
. Benefits Up $160,000
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SEWER ENTERPRISE FUND
Operations & Maintenance Costs
. UP $509,000
. Power $280,000
. Natural Gas ($254,000)
. Contractual Services Alpine County $205,000
. RDA Tax Transfer $120,000
. Connection Plan Transportation Mitigation $83,000
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SEWER ENTERPRISE FUND
1997 to 2006 Operating Costs
Excluding Depreciation
$14,000,000
$12,000,000
$10,000,000
",000,000
$6,000,000
$4,000,000
$2,000,000
1"7
1"7 CPI
Adjuotod
2006
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SEWER ENTERPRISE FUND
1997 to 2006 Operating Costs
Per Million Gallons of Wastewater
Excluding Depreciation
1987 1197 CPI 2D06
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SEWER ENTERPRISE FUND
TEN-YEAR FORECAST
Irrigation IlItdl- Alpine county
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SOUTH TAHOE PUBLIC lITILITY DISTRICT
District-Wide Changes
. Updated Inflation Assumptions
. Salary & Benefits 3%
. Other Operating Costs 2.5%
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'SEWER ENTERPRISE FUND
?':'\':', ", CAPITAL PROJECTS_
illii.~:.
Ten Years Ending June 30, 2015
..,aoo,aoo
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.7,aoo,aoo
..,000._
$5,aoo,-
...aoo.-
$3,aoo,aoo
~,-
$1,OIIG,aoo
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U/U Ul14 WU
". lit "SO IO/U 11112
Total 47623789
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EXPORT PIPELINE
Tahoe Basin Sections A and B:
$40 Million Project
. Prior to the New Fiscal Year
. $38.3 million spent
. All $10.6 million in Federal Funding
received
. District's matching obligation is complete
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" SEWER ENTERPRISE FUND
.'''H!'!~ CAPITAL PROJECTS_
tl~:: ;t,i,f
Ten Years Ending June 30, 2015
$1,787,000 Heavy Equlp/Vehldes
$1,366,525 Pump StatIo...
$1,410,000 Various Equipment
799,501
Building. Grounds Upgrade
P1ant/Sya8ns Upgrade
$18,402,050
Plpelln..
$15,000,000
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SEWER ENTERPRISE FUND
CAPITAL PROJECTS
Ten Years Ending June 30, 2015
. Major Changes From Last Forecast
. Sewer Collection System Infrastructure
Improvements $6 million
. Additional B-Line Costs $1 million
. Carbon Odor Scrubber $250,000
. LPPS Evaluation $150,000
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,.... '.'. SEWER ENTERPRISE FUND
Y.,,'" PROJECTED RATES _._..
"'.." 'c.~a;
Ten Years Ending June 30, 2015
. Years One to Five Consistent With
Previous Forecast
. Years Six to Ten Additional Rate
Increase
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,,~ SEWER ENTERPRISE FUND
Funding Sources for Capital Projects
Service
Cha Illes
39%
Borrowings
21%
Capadty Fees
31%
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'" SEWER ENTERPRISE FUN~...
District Reserve Policy
. Maintaining Reserves are for:
. Future Capital Obligations
. Cash Flow Requirements
. Economic Uncertainties and Financial Hardships
. Local Disasters or CatastrophiC Events
. Insuring Against Significant Revenue Losses
. Unfunded Mandates
. Establishing Credit Worthiness
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,: SEWER ENTERPRISE FUND
Projected Reserves 2015
. Capital Reserves $8.4 Million
. Rate Stabilization Fund $5.1 Million
. Operating Reserves $3 Million
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1\;,. WATER ENTERPRISE FU~~..
2005/06 Budget Proposal
. Revenue: $10.9 million
. Rate Adjustment: 3.5%
. Operating Costs: $7.4 million
. Depreciation: $1.5 million
. Infrastructure Projects: $15.9 million
. Debt Service: $1.4 million
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! WATER ENTERPR!?E FUND
,,:. REVENUE
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! WATER ENTERPRISE FUND
2005/06 Revenue
Interest .
Other
12%
Service Fees
72%
Capacity
Fees
5"10
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I;, WATER ENTERPRISE FUND
Revenue
. Grant Funding
. County Water Agency $281,000
. State AB 303 Groundwater Protection
Funding $42,000
. Tahoe Restoration Act $350,000
. USFS $500,000
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, WATER ENTERPRISE FUND
Revenue
. Up $1.3 million
. Capacity Fees up $233,000
. Service Charges up $202,000
. Grants up $806,000
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" WATER ENTERPRISE FUND
Water Rate
. $102.48 Per Quarter
. $3.48 Change Per Quarter
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,~. 2005/06 QUARTERLY W~TER SERVICE FEES
$300
$250
$200
Inc.... ~ aty ....'" NortIl T_ lG.....ry ClI.._
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WATER ENTERPRISE FUND
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2005/06 Proposed Spending
Operations .
Malntenanlle
15"A1
Debt Serville
6"A1
Labor
16"A1
Capital
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2005/06 QUARTERLY WATER SERVICE FEES
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Soutil Tahoe
California
~1' WATER ENTERPRISE FUN~
Debt Service
. Interest $507,000
. Principal $867,000
. Angora Water Co. Purchase
. 2001 Refunding
. 1999 laSalle Loan
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~.. WATER ENTERPRISE FUND
CAPITAL PROJECTS
2005/06
More From
Paul Sciuto
Assistant Manager/Engineer
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WATER ENTERPRISE FUND
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The Existing
Building
Winter 2004/05
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~; WATER ENTERPRISE FUND
2005/06 Capital Outlay $15.9 Million
. Customer Service Center $5.2 million
. Lab & Operations Building $3.2 million
. Both buildings-
. Accommodate ADA needs
. Meets snow load & seismic building standards
. Improve efficiency and provide more space
. Improve heating & ventilation while saving
energy
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WATER ENTERPRISE FUND
Blakely Johnson & Ghusn, Inc
Report Dated August 23, 2002
Snow Loads In essence, every roof beam, deck
member and foundation. . . Is overstressed by code
for snow load by approximately 100% . . .
Scenarios If a major earthquake struck, the building
would be damaged and could be severely
damaged...The entire building could be a loss.
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WATER ENTERPRISE FUND
Blakely Johnson & Ghusn, Inc
Report Dated August 23, 2002
Recommendations Doing nothing exposes
STPUD to risk of loss of operations and
potential injury to employees. . .We cannot in
good faith recommend that STPUD do nothing.
The risks are real and serious.
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"I. WATER ENTERPRISE FU~~
2005/06 Capital Outlay $15.9 Million
. Waterlines $2.8 million
. Bayview
. Reno to San Jose Avenue
. Johnson Boulevard
. Booster Stations $800,000
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.~~, WATER ENTERPRISE FUND
2005/06 Capital Outlay $15.9 Million
. Wells $1.6 million
. Complete Bayview Well
. Complete South Upper Truckee Re-drill
. Site for Future Well
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.,,!: WATER ENTERPRISE FUN~...
2005/06 Capital Outlay $15.9 Million
. Engineering Staff & Expenses $1.4
million
. Includes Grant Expenses
. Tahoe Restoration Act $539,000
. Ground Water Studies $109,000
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-, WATER ENTERPRISE FUND
Labor Costs
. Up 1%
. Reorganization Salaries Down $138,000
. other Salaries Up $123,000
. Benefits Up $47,000
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WATER ENTERPRISE FUND
1-
1117 CPI
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. O&M Up $601,000
. U/R Cal Trans/City/County
Improvements $700,000
. Ground Water Modeling ($134,000)
. Power $70,000
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., WATER ENTERPRISE FUND
",'" 1997 to 2006 Operating Costs
Exdudin9 Depreciation
1..7
2001
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., WATER ENTERPRISE FUND
Ten-Year Forecast
_Tank -....., CA
OUT OF POCKET DAMAGES
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$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
2004
2005
....~... MTBE
. Recap Litigation
. Settlements
. Legal fees/costs
. Net to District
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$69 million
$28 million
$41 million
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..,1: ~~~LE~~~:~~E FU~~
Ten Years Ending June 30, 2015
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0 ./1
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1/7 ". 1/. _,so 10/1111/1112/11 U/14 14/11
Total $53,713,395
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WATER ENTERPRISE FUND
CAPITAL PROJECTS
Ten Years Ending June 30, 2015
Pump Stations
$2,947,700
Plant/Systems Upgrade
$10,333,000
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II WATER ENTERPRISE FUND
.~E: CAPITAL PROJECTS
Ten Years Ending June 30, 2015
. Major Changes From Last Forecast
Loop System
. Booster Stations + $1.8 million
. Specific Waterlines replaces PY Pioneer
Trail Waterline -$1.4 million
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WATER ENTERPRISE FUND
CAPITAL PROJECTS
Ten Years Ending June 30, 2015
. Major Changes From Last Forecast
. Delay of the Customer Service Center +
Additional $3.2 million
. Delay of the Lab & Operations Building +
Additional $1.9
. Additional Waterlines $3.1 million
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WATER ENTERPRISE FUND
CAPITAL PROJECTS
Ten Years Ending June 30, 2015
~ Major Changes From Last Forecast
Wells
. Bayview + $400,000
. Main Zone Well/Lot $1.8 million
. Replaces PY Chris & Highland Woods -$2,600,000
. Mountain View Well $800,000
. Replaces PY Country Oub .$400,000
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WATER ENTERPRISE FUND
CAPITAL PROJECTS
Ten Years Ending June 30, 2015
. Major Changes From Last Forecast
MTBE
. Treatment System $1.5 million
. Well Destruction $320,000
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I, ~:6iE~~:~~E FUN~
Ten Years Ending June 30, 2015
. Year One Changed from 2.75% to
3.5%
. Years Two to Ten Consistent With
Previous Forecast
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WATER ENTERPRISE FUND
Funding Sources for Capital Projects
Capacity Fees
9%
Capital
Improvement
Charge
35%
MTBI! Funds
41%
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",I WATER ENTERPRISE FUN~_
Projected Reserves 2015
. MTBE Remediation Funds: $3.9 million
. Capital Outlay: $3.8 million
. Operating: $1.7 million
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~. 2005/06 PROPOSED BUDGET
Sewer & Water Combined
. Revenue: $28.5 million
. Rate Adjustment: 3.5%
. Operating Costs: $19.8 million
. Depreciation: $6 million
. Infrastructure Projects: $21.5 million
. Debt Service: $2.6 million
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, Thank you
The End
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GUEST SIGN-IN SHEET
PUBLIC MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
APRIL 28, 2005
2005/06 FISCAL YEAR BUDGETS
Name (Please print) Address Phone
"1~ 01- ~ ~-r71.b ~ ~;/f' iJS' ;2,#' ~3N~
poafER !I/ofr}4~ ~ L- -t
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